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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA.
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Disclaimer This document and any related conference call or webcast (including any related Q&A session) has been prepared by Telefónica, S.A. (“Telefónica” or the “Company”, and together with its subsidiaries the “Telefónica Group”) exclusively for its use during the presentation of financial results. The Company does not assume any liability for the content of this document if used for any purposes different from the one outlined above. This document and any related conference call or webcast (including any related Q&A session) may contain forward-looking statements. These forward-looking statements may include financial and other forecasts and estimates, as well as statements regarding plans, objectives and expectations of the Telefónica Group. The forward-looking statements can be identified, in certain cases, through the use of words such as “will,” “shall,” “target,” “expect,” “aim,” “hope,” “anticipate,” “should,” “may,” “might,” “assume,” “estimate,” “plan,” “risk,” “intend,” “believe” and similar language or other formulations of a similar meaning or, in each case, the negative formulations thereof. Other forward-looking statements can be identified in the context in which such statements are made or by the forward-looking nature of discussions of strategy, plans, objectives or intentions. These forward-looking statements include statements regarding our intent, belief or current expectations with respect to, among other things, the effect on our results of operations of competition in telecommunications markets; trends affecting our business, financial condition, results of operations or cash flows; ongoing or future acquisitions, investments or divestments; our capital expenditures plan; our estimated availability of funds; our ability to repay debt with estimated future cash flows; our shareholder remuneration policies; supervision and regulation of the telecommunications sectors where we have significant operations; our environmental, social and governance commitments and targets; our existing or future strategic partnerships or joint ventures; the potential for growth and competition in current and anticipated areas of our business; and the outcome of pending or future litigation or other legal proceedings and investigations. Any such forward-looking statements reflect the current views of the Telefónica Group’s management and may change over time. They do not intend to be exhaustive, and they have not been verified or audited by any third party. Telefónica's opinions and aspirations with respect to future events do not represent any guarantee of future fulfilment or profitability, and they are subject to risks and uncertainties that could cause the final developments and results to materially differ from those expressed or implied by such forward-looking statements. These risks and uncertainties include those identified in the documents containing more comprehensive information filed by Telefónica with the relevant supervisory authorities of the securities markets in which its shares are listed and, in particular, the Spanish National Securities Market Commission (“CNMV”). 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In addition, there are material limitations associated with the use of non-IFRS financial measures since they exclude significant expenses and income that are recorded in the Company’s financial statements. Information related to any alternative performance measures (APMs) used in this presentation are included in Telefónica’s condensed consolidated financial statements and consolidated management report for 2025, submitted to the CNMV, in Note 2, page 14 of the .pdf filed. Recipients of this document are invited to read it. This document also contains sustainability information, that may include environmental, social and governance-related metrics, statements, goals, commitments and opinions. The sustainability information has been prepared with various materiality analyses, estimates, assumptions and data collection and verification practices and methodologies, both external and internal, which may differ from those used by other companies. Neither this document nor any related conference call or webcast (including any related Q&A session) nor any of their contents constitute an offer to purchase, sell or exchange any security, a solicitation of any offer to purchase, sell or exchange any security, or a recommendation or advice regarding any security, or a solicitation for any vote or approval in any other jurisdiction. This document and any related conference call or webcast (including any related Q&A session) may include data or references to data provided by third parties. Neither Telefónica, nor any of the members of its senior management, its directors or its employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. 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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Summary Mr. Marc Murtra Chairman & CEO
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Opening remarks To provide citizens the best access to digital technologies Absolute commitment to guidance and financial discipline Additional and enhanced customer services A more innovative and competitive company Ambitious and effective management 1 Build a stronger more competitive European operator
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Delivered on 2025 commitments with accelerating momentum in Q4 • Accelerated adj. EBITDA and adj. OpCFaL growth in Q4; exiting 2025 with momentum; strong B2B performance • Adj. OpCFaL and FCF delivered; back-end loaded as expected • Core markets performing well; best commercial results since 2018 in Spain, access base all-time high in Brazil, O2 brand momentum strong in Germany • Portfolio simplification continues; exited 6 markets in Hispam; organisation streamlining progressing with workforce restructuring in place • Full year 2025 guidance achieved • Transform & Grow on track; executing against CMD framework Metric 2025 Guidance FY 25 Q4 25 Revenue 1 @ constant Growth +1.5% ✓ +1.3% Adj. 1,2 EBITDA @ constant Growth +2.0% ✓ +2.8% Adj. 1,2 OpCFaL @ constant Growth +5.9% ✓ +12.9% CapEx ex spectrum / Sales @ constant <12.5% 12.4% ✓ 13.8% FCF ~€2.7bn €2.8bn ✓ €1.4bn FCF incl. commitments & VMO2 dividend ~€1.9bn €2.1bn ✓ €1.4bn Dividend €0.30 DPS €0.30 DPS Dec-25 (€0.15) Jun-26 (€0.15) ✓ Leverage Slightly Higher 2.78x ✓ 2 1) Constant: assumes constant FX (average FX 2024), constant perimeter and excludes the contribution to growth from Venezuela 2) Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. 4 EVOLVE TECHNOLOGICAL CAPABILITIES 5 SIMPLIFY OPERATING MODEL 6 DEVELOP TALENT 1 DELIVER BEST -IN- CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B Milestones achieved in 2025 create a solid foundation for Transform & Grow plan • Fibre leadership 163m PPs, +1%, 5G coverage 80% core markets, +6 p.p.y-o-y • FiBrasil now fully owned • Advanced network automation and new AI technologies, 12 use cases operating at Level 4 Autonomy • Continued legacy shut-down; copper switch-off in Spain a major milestone, copper shut down in Brasil started • Workforce transformation T. España and Global Units (agreement in place), ~€0.6bn run-rate savings by 2028 • Accesses reached 326.1m, +2% y-o-y, NPS score 35 (+2 p.p. vs Q3) • Spain leading on CLV with best-in-class churn and ARPU; UEFA rights 2027-2031, La Liga 2027-2032, Brazil convergence accelerating, Vivo Total accesses up 41%, Germany churn at historic lows, O2 contract 1.1% • Robust B2B revenue growth +7% (Q4 & FY), double digit growth in IT, expand the services we offer • Implementing an impact-based culture and reached a 73 eNPS 3 FOCUS ON PORTFOLIO MANAGEMENT EXECUTION INVESTING IN CORE MARKETS 4 strong core markets EXECUTING HISPAM EXIT 4 Hispam exits (Argentina, Perú, Ecuador and Uruguay), completed in 12 months
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Transform & Grow: the 2026 priorities that drive the next phase of growth growth1 DELIVER BEST -IN-CLASS CUSTOMER EXPERIENCE 2 EXPAND B2C OFFERING 3 SCALE B2B • Faster incidents resolution across the Group • Hyper-personalisation through AI • Cutting-edge equipment: WiFi 7 in Spain and Brazil • Accelerated convergence in Brazil and Germany and enhancing capabilities in UK • Expanding ecosystem: media, security, consumer electronics, AI, fintech • Secure premium content position in Spain • Scaling cybersecurity and cloud • Growing defense sector positioning in Spain • Accelerate in UK, leveraging 02-Daisy integration • Expanded fiber network in UK and Brazil • Next-gen 10 Gbps fibre in Spain and Brazil • Expanded 5G coverage across core markets • Copper shutdown in Brazil • Workforce restructuring • Lease and vendor optimisation • Network and business operations automation via AI • Upskill workforce to deploy AI and automation tools 4 EVOLVE TECHNOLOGICAL CAPABILITIES 5 SIMPLIFY OPERATING MODEL 6 DEVELOP TALENT 4 ACTIVE PORTFOLIO MANAGEMENT EXECUTING HISPAM EXIT 2 exits closed YTD (Colombia, Chile) INVESTING IN CORE MARKETS UK: Nexfibre acquisition of Netomnia expands fibre footprint to become the largest full fibre altnet in the UK. VMO2 to acquire Netomnia broadband customers
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. 2026 Guidance Revenue1 @ constant 1.5%-2.5% 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 Adj. EBITDA1,2 @ constant 1.5%-2.5% 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 CapEx ex spectrum/Revenue @ constant ~12% Down to ~12% '26-'28 Down to ~11% in '30 Adj. OpCFaL1,2 @ constant Over 2% 1.5-2.5% CAGR '25-'28 2.5-3.5% CAGR '28-'30 FCF3 ~€3.0bn 3-5% CAGR '25-'28 Leverage Declining towards 2028 target ~2.5x in ‘28 Dividend4 0.15 €/share 40-60% of '27-'28 FCF base for dividend5 Guidance 2026, 2025-2028 and 2028-2030 1. Constant: assumes constant FX (average FX 2025), constant perimeter and excludes the contribution to growth from Venezuela 2. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts 3. FCF for Guidance includes reported FCF from continuing operations and excludes non-recurring spectrum payments, employee commitments and VMO2 dividends 4. Dividend payable in cash in June of the following year. 5. FCF base for dividend = FCF base for guidance – Employee commitments + VMO2 dividends. 5 Transform & Grow 2026 2028 2030 Transform & Grow
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Mr. Emilio Gayo COO Operating Business
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Revenue • 2025, best KPIs since 2018 - Record FBB and TV net adds - Lowest churn ever, best portability ratio - NPS based on segmentation and top QoS Redundancy plan large efficiencies (~250M€ in FY 26, ~500M€ in FY 28) Football rights secured (next cycles of UEFA & LaLiga) Deploying a leading Edge Plan (17 nodes) Spain: Operational excellence support outstanding KPIs, FY growth across financials 3,364 3,170 3,186 3,233 3,423 1.3% 1.7% 1.9% 1.6% 1.8% Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 1,255 1,128 1,125 1,168 1,269 1.0% 1.0% 1.0% 1.1% 1.1% Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Postpaid ConvergentFBB Pay TV Convergent KPIs Churn (%)ARPU (€) +2.3% Accesses y-o-y+2.8% +1.2% +7.9% 23 26 42 53 21 89 79 131 141 82 6 5 15 21 1516 66 89 73 51 Q4 24 90.7 92.3 91.1 89.3 89.7 0.8% 0.9% 0.8% 0.8% 0.7% Q4 24Q1 25 Q1 25 36%37% 20%20% 656 634 591 638 662 2.8% 2.0% 2.8% 3.9% 0.9% 0.0% 5.0% 10.0% 0 200 400 600 800 1,0 00 1,2 00 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q2 25 Q2 25 35% 19% • Solid retail revenue - Sustained top convergent ARPU and churn - IT double digit growth in FY (>50% B2B) • FY growth in profitability and cash generation - Adj.EBITDAaL (+0.9% y-o-y; Q4 +0.4%) - Adj. OpCFaL (+2.3% y-o-y) • CapEx/Sales - Superior FTTH & 5G networks - FY: 11.7% (-0.4 p.p. y-o-y) • Operational CO2 emissions -92% vs 2015 Q3 25Q3 25 36% 20% Net adds (k) Q4 25 Q4 25 37% 19% 6 Adj. EBITDA & margin Adj. OpCFaL & margin Constant: assumes constant FX (average FX 2024), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Impacts from migration to Authorisation (+€16m in Q4 25; +€101m in Q4 24) • Access base at an all-time high - Vivo Total (fully convergent) +40.9% - Steady growth in FTTH & contract - Improvement mobile ARPU (+5.2%) • New digital businesses gaining traction - B2C: Video & Music OTT: +18.1% - B2B: Cloud (+37.8%) and IoT (+25.9%) Brazil: Vivo differentiated assets are driving strong operational and financial performance 2,350 2,337 2,279 2,349 2,486 7.7% 6.2% 7.1% 6.5% 7.1% 1,050 964 960 1,067 1,118 7.9% 8.0% 8.6% 8.8% 8.2% 432 444 372 444 508 9.7% 14.5% 14.3% 13.6% 19.7% ContractFTTH KPIs (local currency) +12.0% Accesses y-o-y+5.7% 220 211 201 225 197 894 672 689 739 710 • Growing above inflation in all metrics • Revenue y-o-y growth acceleration - MSR improved to +7.0%. Contract (+7.7%) - Fixed (+5.4%): FTTH (+9.9%) • Adj. OpCFaL: +15.7% in FY 25 - CapEx/Sales 15.6% (-0.8 vs FY 24) • Vivo at COP 30: Strengthened its ESG positioning 28 28 29 30 30 92 89 88 87 86 1.0% 1.1% 1.1% 1.1% 1.2% 1.5% 1.5% 1.5% 1.5% 1.4% Mobile ARPUFTTH ARPU 42%41%45% 16%19%18% Q3 25Q4 24 Q1 25 Q2 25 FTTH Churn Contract Churn 45% 20% Revenue Adj. EBITDA & margin Adj. OpCFaL & margin Net adds (k) Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 45% Q3 25Q4 24 Q1 25 Q2 25 Q4 25 19% 7Constant: assumes constant FX (average FX 2024), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. O2 Postpaid Fixed BB Net adds exclude 3rd party MNO-accesses 199 247 246 165 126 6.1% 4.8% (6.3%) (3.4%) (36.6%) -37.0% -17.0% 3.0 % 23.0% 43.0% 63.0% 83.0% 103 .0% -200 -100 0 100 200 300 400 500 Accesses (y-o-y) Postpaid +4.0% Fixed BB IoT +33.3% 2,205 2,056 2,040 1,960 2,116 (3.7%) (2.0%) (2.4%) (6.6%) (4.0%) -7.0% -2.0% 3.0 % 8.0 % 13.0% -800 -300 200 700 1,2 00 1,7 00 2,2 00 2,7 00 Revenue Adj. EBITDA & margin Adj. OpFCFaL & margin • Focused on profitable growth in a mature market with persistently high promotional activity - Good traction O2 brand; attractive mobile offers - Low level of O2 contract churn 1.1% • Network quality - O2 ranked 2nd place in connect magazine test - 5G network coverage target achieved: 99% • Temporary headwinds from 1&1 - MSR and Adj. EBITDA under pressure. Customer migration completed by year-end - Fixed revenue maintained growth path, handset sales seasonally up • 1&1 effects to annualise along FY 26 • ESG; Transparency Award for the 3rd time in a row, confirming the ‘Excellence’ status in 2025 Return to growth in 2027 based on a high-quality network and a solid brand positioning Net adds (k) ARPU (y-o-y) Germany: Robust core business momentum, 1&1 migration weighing on financials 226 164 184 157 192 (2) 0 (15) 3 3 84 150 177 202 213 (3.2%) (0.1%) (1.1%) (1.5%) (1.2%) 4.9% 4.8% 3.5% 4.0% 4.1% Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 33% 31% 30%32%31% 9% 12% 6%8%12% Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 (0.4%) 737 640 638 628 630 5.3% (2.0%) (6.0%) (9.6%) (14.6%) -16.0% 4.0 % 24.0% 44.0% 64.0% 84.0% -200 0 200 400 600 800 1,0 00 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 8Constant: assumes constant FX (average FX 2024), assumes constant perimeter and excludes the contribution to growth from VenezuelaAdjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. • Fixed footprint: 18.8m UBB PPs • 5G outdoor coverage: 87% (+12 p.p. y-o-y) • Improved fixed-line trading for 2nd consecutive Q - Q4 25 mobile trading affected by price rise • Recognised as the UK’s top broadband provider in Opensignal’s 2025 • Revenue & Adj. EBITDA FY guidance met - +0.2% and +0.9% respectively - Lower handset sales and nexfibre construction - Consumer fixed affected by strong competition • ESG: ‘A-’ rating; CDP leadership’ level (0.6%) 2.6% 1.4% 1.3% 1.2% 2.0% 1.6% 0.0% (1.2%) (0.8%)(19) (123) (74) (36) (165) 12 (44) (51) (26) (17) 36% 39%38%36% 14% 16%15%14% 441 414 438 472 403 (34.0%) 15.2% (10.8%) 15.1% (6.3%) -40.0% -20.0% 0.0 % 20.0% 40.0% 60.0% -500 -300 -100 100 300 500 700 900 1,1 00 3,263 2,968 2,976 2,943 2,922 (4.0%) (4.2%) (5.5%) (7.5%) (8.3%) -19.0% -14.0% -9.0% -4.0% 1.0 % 6.0 % 11.0% 16.0% 21.0% 26.0% -2,500 -1,500 -500 500 1,5 00 2,5 00 3,5 00 1,169 1,078 1,137 1,148 1,077 (10.0%) (3.1%) (0.7%) 0.3% (4.3%) -15.0% -10.0% -5.0% 0.0 % 5.0 % 10.0% 15.0% 20.0% 25.0% -1,100 -600 -100 400 900 1,4 00 Accesses (y-o-y) Postpaid -1.5% Fixed BB Postpaid Fixed BB VMO2: Strong progress in fiber and 5G deployment -0.9% excl. Daisy impact in Q3 25 ARPU (y-o-y) Revenue Adj. EBITDA & margin Adj. OpCFaL & margin Net adds (k) Q3 25Q4 24 Q1 25 Q2 25 Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 Q3 25Q4 24 Q1 25 Q2 25 Q4 25 37% 14% Q3 25Q4 24 Q1 25 Q2 25 Q4 25 9 Agreement for Netomnia acquisition Strengthened network, fibre expansion and value creation through VMO2 and nexfibre Constant: assumes constant FX (average FX 2024), assumes constant perimeter and excludes the contribution to growth from VenezuelaAdjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts. CapEx: assumes CapEx ex-spectrum.
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Telefónica Tech / Telefónica Infra >100km of international fibre connectivity Telefónica monetising 8% stake to 55% Sustained profitability FY 25 • Focused on value creation optionality • Contributes to the industrial transformation and efficiency of OBs Telefónica Infra FTTH JV premises passed (m) (via FibreCos) 20.6 21.7 Dec-24 Dec-25 24% of TEF’s FTTH deployment Agreement for AXA to acquire a 40% - subject to regulatory approvals >45% Adj. EBITDA margin Final structure T. España 30% T. Infra 25% AXA 40% VOD España 5% Revenue (€m) (y-o-y constant) Sustainable growth Telefónica Tech +18.9% • Uninterrupted commercial traction • Scaling capabilities to foster growth in Cybersecurity, Sovereign cloud, IoT and AI • Simplified operating model in HispAm, transferred operations (Colombia, México, Chile and Perú (Dec-25 & Jan-26)) FY 25 2,222 10Constant: assumes constant FX (average FX 2024), assumes constant perimeter and excludes the contribution to growth from Venezuela. Adjusted: assumes constant perimeter and does not include restructuring costs, write-offs and material non-recurring impacts, capital gains/losses from change in perimeter and CapEx ex-spectrum. CapEx: assumes CapEx ex-spectrum. Growth in line with revenue Bookings vs FY 24
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Financials / ESG Mr. Juan Azcue Chief Financial & Corporate Development Officer
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. FY 25 Q4 25 € in millions Current Current y-o-y Constant y-o-y Current Current y-o-y Constant y-o-y Revenue 35,120 (1.5%) 1.5% 9,174 0.7% 1.3% Service revenue 31,601 (1.5%) 1.5% 8,107 0.3% 0.9% B2C revenue 20,831 (2.4%) 1.8% 5,408 1.1% 2.1% B2B revenue 7,957 4.0% 7.1% 2,158 6.3% 7.3% Wholesale & Others 6,331 (5.3%) (6.1%) 1,608 (7.3%) (8.2%) Adj. EBITDA 11,918 (1.6%) 2.0% 3,198 2.0% 2.8% Adj. OpCFaL 5,081 1.9% 5.9% 1,281 12.3% 12.9% CapEx ex spectrum/ Sales 12.4% (0.7 p.p.) 13.8% (1.3 p.p.) FCF 2,786 (20.2%) FCF incl. commitments and VMO2 dividend 2,069 (26.3%) 1,402 5.7% Net Financial Debt 26,824 (1.2%) Adj. EPS from continuing operations 0.33 (21.1%) 0.06 (29.7%) Q4 momentum across our key financial metrics FY negative FX impact, lessen in Q4 -0.7 pp in revenue, -0.9 pp in adj. EBITDA, -1.1 pp in adj. OpCFaL Hispam sales discontinued operations (ARG, PER, ECU, URU, COL, other small companies) 11 Constant: assumes constant FX (average FX 2024), constant perimeter and excludes the contribution to growth from Venezuela Adjusted figures consider constant perimeter and derived capital gains/losses and do not include restructuring costs, write-offs and material non-recurring impacts CapEx: assumes CapEx ex-spectrum
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. FY 2025 guidance exceeded and 2026 upgraded guidance FCF 2026: FCF from continuing operations excludes non-recurring spectrum payments, employee commitments and VMO2 dividends, at current FX. 12 ~€2.7bn 2025 CMD 2025 current €2.8bn ~€2.9bn – €3bn 2026 CMD guidance 2026 new guidance ~€3.0bn FCF vs Guidance Guidance Current Q4 & FY 25 2026 • Q4 FCF acceleration drove full year delivery • 2025 FCF above guidance on healthier FCF basis after some Hispam disposals and positive underlying momentum • Upgrading to ~€3.0bn FCF guidance for 2026 ex. Chile • Focus on adjusted OpCFaL positive performance and optimization of all lines below
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Disciplined balance sheet management Net Financial Debt 27,161 (1,604) 2,126 ND/EBITDAaL adj. 2.78x Dec-24 FCF total1 Dec-25FX & Others Net financial divestments Shareholder Remuneration 26,824(1,741) 882 ND/EBITDAaL adj. 2.58x Dec-25 Post closing ~€24.6bn(€2.2bn) Colombia, Fiberpass, Chile (1) Total FCF (continuing and discontinued operations) including spectrum payments. Ample liquidity position Liquidity cushion, Dec-25 (€bn) 3.4 3.9 2.3 2026 2027 2028 Gross debt maturities, Dec-25 (€bn) 10.9 yrs Average Debt Life 10.0 Undrawn credit lines & synd. credit facilities Total liquidity 17.4 Cash & Other Current Financial Assets 7.4 3.19% 2.98% Total debt related interest payment cost excluding leases Dec- 24 Dec-25 Reduced debt-related cost • Leverage reduction in Q4, from 2.87x in Q3 to 2.78x, further deleverage in 2026 towards 2.5x target in 2028 • Committed to investment grade credit rating • Strong liquidity position covering well-spread maturities for next years • Reduced debt-related cost Highlights 13
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Clear financial priorities position Telefónica to create long-term value DE-RISKED AND GROWING FCF INVESTMENT GRADE A MUST SUSTAINABLE REMUNERATION LINKED TO FCF IMPROVED FINANCIAL FLEXIBILITY VAVALUE ACCRETIVE M&A - CORE MARKETS OPPORTUNITIES - SYNERGISTIC - FINANCIAL DISCIPLINED 14
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Continued progression across the sustainability pillars Environmental Social Governance Advancing towards Net Zero in 2040 -91% Scopes 1 & 2 since 2015 -34% Scope 3 since 2016 Continue to lead in ratings: CDP A List for 12th consecutive year 1st in sector in WBA Digital Inclusion & Social Benchmarks and Ranking Digital Rights Index Safeguarding the supply chain >17k sustainability-related audits in 2025 Leading in sustainable financing >20bn of financing linked to sustainable indicators Connecting communities 92% rural MBB coverage across core markets Securing stability with clean energy 39% of Group energy sourced from long-term from renewal PPAs 15 Protecting customers from cyber threats 211m attacks avoided in 2025 (Spain)
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Key takeaways Mr. Marc Murtra Chairman & CEO
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Closing remarks Strong operating progress across Spain, Brazil and Germany, each advancing on strategic priorities Telefónica delivered on all 2025 financial commitments with accelerating momentum in Q4. Simplifying operations across the business with Hispam exit progressing, efficiency initiatives ramping, and workforce restructuring on track 2026 guidance, growth in revenue & adj. EBITDA and accelerating in adj. OpCFaL and FCF upgrading to ~€3Bn, supporting dividend & deleveraging. We already exited Chile & Colombia and announced the Netomnia acquisition Executing on our Transform & Grow plan with a clear framework: driving growth with consolidation as an upside Telefónica has a strong foundation and the best plan to become a world-class European Telco with profitable scale 16
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. Telefónica’s management will host a webcast on 24 February at 10:00 AM (CET), 9:00 AM (GMT), and 4:00 AM (EST) Participants from Telefónica • To access the webcast: click here • The webcast replay will be available on Telefónica IR’s website after the event • To participate in the Q&A session, please register using the following link to receive the dial in and PIN details: click here • Marc Murtra l Chairman & CEO • Emilio Gayo l COO • Juan Azcue l CFDO • Lutz Schüler l CEO Virgin Media O2 • Torsten Achtmann l Global Director of Investor Relations Webcast Q&A Session Results presentation and Q&A Session
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***Este documento está clasificado como USO INTERNO por TELEFÓNICA. ***This document is classified as INTERNAL USE by TELEFÓNICA. For further information, please contact: Investor Relations Torsten Achtmann (torsten.achtmann@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Tel. +34 91 482 87 00 ir@telefonica.com www.telefonica.com/investors FOLLOW US: Linkedin/Telefónica/Investor Relations CDP Climate A List 2025 ISS ESG Corporate Rating #2 in sector Digital Inclusion Benchmark, Social Benchmark and Ranking Digital Rights 1st company worldwide 2026 2025 #1 in sector Sustainalytics ESG Industry Top Rated 2025 Bloomberg ESG Score #2 in sector