Euskaltel S A : OTHER RELEVANT INFORMATION Euskaltel publishes fourth quarter 2019 results presentation.

FY2019

Results

February 25th, 2020

|Disclaimer

This presentation (the "Presentation") has been prepared and is issued by, and is the sole responsibility of Euskaltel, S.A. ("Euskaltel" or "the Company"). For the purposes hereof, the Presentation shall mean and include the slides that follow, any prospective oral presentations of such slides by the Company, as well as any question-and-answer session that may follow that oral presentation and any materials distributed at, or in connection with, any of the above.

The information contained in the Presentation has not been independently verified and some of the information is in summary form. No representation or warranty, express or implied, is made by the Euskaltel Group (including Euskaltel, S.A., R Cable y Telecomunicaciones Galicia, S.A.U. and Parselaya, S.L.U. and its subsidiaries (Telecable Capital Holding, S.A.U. and Telecable de Asturias S.A.U.)), nor by their directors, officers, employees, representatives or agents as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions expressed herein. None of Euskaltel Group, nor their respective directors, officers, employees, representatives or agents shall have any liability whatsoever (in negligence or otherwise) for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of the Presentation or its contents or otherwise arising in connection with the Presentation, save with respect to any liability for fraud, and expressly disclaim any and all liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in connection with the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements contained in the Presentation.

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2

Q4 2019 results

| Main operating and financial KPIs significantly improved in the year

Operating

KPIs

(FY19 vs FY18)

Financials

(FY19 vs FY18)

+8.8k

+17.7k

+46.9k

-0.9%

+2.4%

+4.0%

Mass Market fixed customers net adds1

Broadband net adds

Postpaid mobile net adds

Revenue

(YoY growth)

EBITDA

(YoY growth)

OpCF

(YoY growth)

Customer base grows in the year after two years of losses

Service take up drives convergencein the customer base

Efficient cost and capex management initiatives drives profitability and higher cash generation

1. Mass market fixed subs = residential fixed subs + SOHO fixed subs (exc. only mobile subs)	3

Q4 2019 results

|All assets in place for national expansion

Efficient unified operational platform: One business, 3 brands

Wholesale network agreementsrenewed with improved conditions

Agreement to use Virgin brand signed

National expansion business planto be published next March 10th, 2020

4

Q4 2019 results

Operating review

5

Q4 2019 results

|Rapid extension of accessible footprint delivers customer growth opportunities

Current footprint (in thousand households)

						5,360	5,780			+3,422k YoY
									+3,271k YoY
									▪	RACCtel (Cataluña)
					2,953	2,999	3,311	▪	Cantabria
2,357	2,911		▪	León
569	598				▪	La Rioja
		40							+151k YoY
2,317	2,342	2,355	2,361	2,469	▪
Navarra
									▪	Infill FTTH
Q4 18	Q1 19	Q2 19		Q3 19	Q4 19
		Homes passed_owned (HFC & FTTH)		Accessible homes_wholesale

9,341

6,872

2,469

Q1 20e

~18m

households

estimated by Q2

2020

Addressable footprint multiplies with the addition of accessible households through the Orange agreement and Telefonica's regulated footprint

6

Q4 2019 results

|The company returns tofull-year customer growth

Mass market subscribers1(in thousands)

Mass market fixed net adds per quarter (in thousands)

o/w fixed services subs		o/w only mobile subs

770 768772 771 771

109 106 105 104 101

+0.4

+2.3

661 662 666 667 670

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

1. Mass market subs = residential subs + SOHO subs + RACC only mobile subs

(7.6)
Q4 17	Q4 18	Q4 19

Mass market fixed net adds per year (in thousands)

+8.8

(3.5)

(21.1)

2017

2018

2019

7

Q4 2019 results

|Increased service penetrationdrives a convergent customer base

Broadband, mobile and TV services increase by 11k in the quarter

Mass market services1(RGUs) per type (in thousands)

			Fixed Voice			Broadband		TV		Post-paid mobile	+11k
							2,845
	2,764		2,785	2,828	2,834
	1,120			1,131	1,155		1,158	1,167
	447			455	465		466	468
	577			580	587		590	594
	621			618	621		619	616
	Q4 18	Q1 19		Q2 19	Q3 19	Q4 19
Services	3.59			3.63	3.66		3.67	3.69
/sub

1. Mass market services = residential services + SOHO services + RACC only mobile services

Q4 2019 results

+8k QoQ

+2k QoQ

+4k QoQ

-3k QoQ

8

|SME and large accountscustomer growth continues on a positive trend

SME and large account subscribers (in thousands)

15.1

15.0

14.8

15.2 15.3

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

9

Q4 2019 results

Financial review

10

Q4 2019 results

|Customer growth drives revenue back to positive growth in the quarter

Total revenue breakdown by segment (EURm)		Total revenue evolution YoY (%)
		Mass market1		B2B		Wholesale	+0.7%

170.5	171.7	171.1	171.1	171.6	(0.9%)
7.9	6.6	7.6	7.9	7.5	(0.4%)
26.6	30.0	26.6	26.1	27.4
					(2.8%)
136.0	135.1	136.9	137.1	136.8

					(4.3%)
					Q4 18	Q1 19	Q2 19	Q3 19	Q4 19
Q4 18	Q1 19	Q2 19	Q3 19	Q4 19

1. Mass market revenue = residential revenue + SOHO revenue + RACC only mobile revenue

11

Q4 2019 results

|Operating efficiencies allow for a significant SG&A reductionin the year

Gross margin (% over revenue)

Selling, general and administrative expenses (EURm)

75.0%	71.7%	73.6%	73.2%	76.7%1

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

-11.0%

44.3	42.0	41.5
5.1	38.5	39.4
3.9	4.9
		4.4
		4.6
9.1	8.4
8.0
		8.6	9.2
11.7	11.1	11.1
		10.3	10.4
12.2	12.0	10.9	10.3	10.8
6.1	6.6	6.6	4.6	4.6
Q4 18	Q1 19	Q2 19	Q3 19	Q4 19

Others

Network and IT systems

Personnel

Customer care

Marketing and SAC

1. Gross margin includes €6.9 million of one-offs mainly from the renewal of the Orange wholesale agreement

12

Q4 2019 results

|EBITDA continues on a positive trend and posts a second quarter of positive growth

EBITDA1(EURm)

Total EBITDA evolution3YoY (%)

% over revenue

			+306bps
				53.8%
49.0%		49.4%	50.7%	92.22
47.3%
83.6	84.4	86.8
81.1

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

1. EBITDA definition as per 'alternative performance measures': EBIT + depreciation and amortization +/- impairment + other non recurrent results
2. EBITDA includes €6.9 million ofone-offs mainly from the renewal of the Orange wholesale agreement

+7.7%

		(3.2%)	+0.1%
(4.6%)
	(6.8%)
Q4 18	Q1 19	Q2 19	Q3 19	Q4 19

3. EBITDA evolution excluding the impact of IFRS 16 (€10.1m in the year) from the comparison

13

Q4 2019 results

|Cash flow generationgrows more than 4% in 2019 vs 2018

Capex (EURm and as % of revenue)				OpCF (EBITDA - capex) (EURm)
												% over revenue
49.4			Capex ex - SAC		SAC 1						27.9%
							44.4				49.8
	38.3					46.5	46.1	47.8
10%			36.9
34.6
						12%
							34.2
	11%			10%
	10%

19%

10%11% 12%

14%

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

Q4 18

Q1 19

Q2 19

Q3 19

Q4 19

1. SAC capex includes commercial costs and customer equipment

14

Q4 2019 results

|Cash generation allows for significant debt reductionin the year

2019 cash allocation (EURm)

2019 net debt (EURm)

% over revenue

50.3%
344.5	(154.3)
	27.8%					✓EUR 0.31 cents
						per share
	190.3	(42.1)				✓3.8%dividend
					yield1
		(7.4)
		(16.8)	(23.0)	14.8%
					101.1	(55.3)
						45.8

▪	Net debt/EBITDA2: 4.21x
▪	Cost of debt: 2.59%
▪	Average maturity: 5.0 years
1,532
	-€46m
	1,486

Net debt as of Dec 31, 2018

Net debt as of Dec 31, 2019

2. EBITDA adjusted by identified potential synergies

1. Dividend yield on the volume weighted share price FY 2019

15

Q4 2019 results

|2019 has been a year of achievementsfor the company

Operational improvementsbeing implemented and delivering results

First year in the last three of customer base growth

Revenue and EBITDA are back to quarterly year-on-year growth

Improved EBITDA and stable capex drive strong cash flow generation

Continued deleveraging pathas a result of cash generation

All assets are in place for the launch of national expansion

16

Q4 2019 results

EUSKALTEL, S.A.

Investor Relations Office Tel: [phone] [e-mail] www.euskaltel.com

Q&A

Appendix

Euskaltel Group FY2019 consolidated results and KPIs

18

Q4 2019 results

|Euskaltel Group consolidated - KPIs (i/iii)

Mass market			Annual					Quarterly
KPIs	Unit	2018	2019		Q1 18	Q2 18	Q3 18	Q4 18	Q1 19	Q2 19	Q3 19	Q4 19
Homes passed_owned (HFC & FTTH)	#	2,317,385	2,468,822	2,222,026	2,230,073	2,268,286	2,317,385	2,341,655	2,355,173	2,360,891	2,468,822
Accessible homes_wholesale	#	39,938	3,310,812				38,476	39,938	569,092	598,061	2,999,183	3,310,812
Mass market subs 1	#	770,143	771,074	777,141	778,132	772,298	770,143	767,863	771,855	771,376	771,074
o/w fixed services subs	#	660,914	669,671	663,949	666,281	660,487	660,914	661,950	666,492	667,376	669,671
o/w only mobile subs	#	109,229	101,403	113,192	111,851	111,811	109,229	105,913	105,363	104,000	101,403
Total services (RGUs)2	#	2,764,099	2,845,271	2,730,720	2,765,593	2,743,941	2,764,099	2,784,519	2,827,928	2,833,873	2,845,271
Fixed Voice	#	620,857	615,781	633,208	633,432	622,942	620,857	618,245	621,213	619,046	615,781
Broadband	#	576,720	594,393	573,125	577,657	573,613	576,720	580,329	586,978	590,077	594,393
TV	#	446,664	468,333	427,457	437,595	436,517	446,664	454,992	464,848	466,273	468,333
Post-paid mobile	#	1,119,858	1,166,764	1,096,930	1,116,909	1,110,869	1,119,858	1,130,953	1,154,889	1,158,477	1,166,764
Services (RGUs) per subscriber	#	3.59	3.69	3.51	3.55	3.55	3.59	3.63	3.66	3.67	3.69
Global ARPU fixed customers (quarterly standalone)	€/month	60.98	60.46	61.42	60.76	61.30	60.43	60.33	60.35	60.72	60.42
SMEs and Large Accounts			Annual					Quarterly
KPIs	Unit	2018	2019		Q1 18	Q2 18	Q3 18	Q4 18	Q1 19	Q2 19	Q3 19	Q4 19
Customers	#	14,827	15,263	14,728	14,785	14,801	14,827	14,960	15,133	15,208	15,263

1. Mass market subs = residential subs + SOHO subs + RACC only mobile subs
2. Mass market services = residential services + SOHO services + RACC only mobile services

19

Q4 2019 results

|Euskaltel Group consolidated - Consolidated financials (ii/iii)

Profit and Loss Statement

Total revenue Y-o-ychangeo/w Mass market revenue 1Y-o-ychangeo/w B2B revenueY-o-ychangeo/w Wholesale and Other revenueY-o-ychangeGross margin % of total revenueSelling, General & Admin. Expenses (SG&A) o/w marketing and SAC o/w customer care o/w personnel o/w network and IT systems o/w othersAdjusted EBITDA

• of total revenueY-o-y change

Depreciation and Amortization

Extraordinary items

Net financial expenses

Net profit before taxes

Taxes

NET PROFIT

	Annual					Quarterly
								Q1 19	Q2 19	Q3 19	Q4 19
Unit	2018	2019		Q1 18	Q2 18	Q3 18	Q4 18
€m	691.6	685.5	176.6	172.7	171.9	170.5	171.7	171.1	171.1	171.6
%	-2.2%	-0.9%	0.4%	-2.0%	-2.7%	-4.3%	-2.8%	-0.9%	-0.4%	0.7%
€m	550.0	545.8	138.4	137.7	137.8	136.0	135.1	136.9	137.1	136.8
%	-3.7%	-0.7%	-3.0%	-3.6%	-4.0%	-4.2%	-2.4%	-0.6%	-0.5%	0.5%
€m	109.0	110.0	28.6	27.5	26.3	26.6	30.0	26.6	26.1	27.4
%	3.5%	0.9%	9.5%	4.9%	2.8%	-3.0%	4.7%	-3.4%	-0.6%	2.8%
€m	32.6	29.6	9.6	7.5	7.8	7.9	6.6	7.6	7.9	7.5
%	6.4%	-9.3%	33.8%	2.8%	3.7%	-10.5%	-31.2%	2.2%	1.8%	-4.7%
€m	511.9	505.8	127.8	131.1	125.2	127.9	123.1	125.9	125.2	131.6
%	74.0%	73.8%	72.4%	75.9%	72.8%	75.0%	71.7%	73.6%	73.2%	76.7%
€m	(175.5)	(161.3)	(43.6)	(46.6)	(41.1)	(44.3)	(42.0)	(41.5)	(38.5)	(39.4)
€m	(23.8)	(22.4)	(5.3)	(6.5)	(5.8)	(6.1)	(6.6)	(6.6)	(4.6)	(4.6)
€m	(48.5)	(44.1)	(11.9)	(12.2)	(12.1)	(12.2)	(12.0)	(10.9)	(10.3)	(10.8)
€m	(45.5)	(42.9)	(11.3)	(11.2)	(11.3)	(11.7)	(11.1)	(11.1)	(10.3)	(10.4)
€m	(37.9)	(34.1)	(10.9)	(11.1)	(6.8)	(9.1)	(8.4)	(8.0)	(8.6)	(9.2)
€m	(19.8)	(17.8)	(4.2)	(5.5)	(5.0)	(5.1)	(3.9)	(4.9)	(4.6)	(4.4)
€m	336.4	344.5	84.2	84.5	84.1	83.6	81.1	84.4	86.8	92.2
%	48.6%	50.3%	47.7%	49.0%	48.9%	49.0%	47.3%	49.4%	50.7%	53.8%
%	-1.3%	2.4%	0.3%	-0.8%	0.0%	-4.6%	-3.7%	-0.1%	3.2%	10.4%
€m	(194.8)	(202.7)	(48.8)	(50.6)	(48.2)	(47.2)	(50.2)	(51.0)	(51.1)	(50.4)
€m	(11.8)	(21.0)	(2.9)	(3.6)	(1.4)	(3.8)	(2.9)	(7.6)	(5.2)	(5.3)
€m	(48.2)	(49.3)	(12.9)	(11.3)	(11.9)	(12.1)	(12.6)	(12.1)	(12.4)	(12.1)
€m	81.7	71.5	19.5	19.0	22.6	20.5	15.4	13.7	18.0	24.4
€m	(18.9)	(9.5)	(4.9)	(4.8)	(4.9)	(4.3)	(3.4)	(2.8)	1.0	(4.3)
€m	62.8	62.0	14.6	14.2	17.7	16.3	11.9	11.0	19.0	20.1

1. Mass market revenue = residential revenue + SOHO revenue + RACC only mobile revenue

20

Q4 2019 results

|Euskaltel Group consolidated - Consolidated financials (iii/iii)

Cash Flow Statement			Annual					Quarterly
	Unit		2018	2019		Q1 18	Q2 18	Q3 18	Q4 18	Q1 19	Q2 19	Q3 19	Q4 19
EBITDA	€m	336.4	344.5	84.2	84.5	84.1	83.6	81.1	84.4	86.8	92.2
Capex	€m		(153.5)	(154.3)		(33.9)	(34.0)	(36.1)	(49.4)	(34.6)	(38.3)	(36.9)	(44.4)
% of total revenue	%		-22.2%	-22.5%		-19.2%	-19.7%	-21.0%	-29.0%	-20.2%	-22.4%	-21.6%	-25.9%
Operating Cash Flow	€m		182.9	190.3		50.3	50.5	48.0	34.2	46.5	46.1	49.8	47.8
% of total revenue	%		26.4%	27.8%		28.5%	29.3%	27.9%	20.0%	27.1%	27.0%	29.1%	27.9%
Interests	€m		(40.0)	(42.1)		(8.3)	(11.8)	(10.6)	(9.3)	(12.3)	(9.3)	(11.4)	(9.1)
Working Capital	€m		11.9	-7.4		(15.6)	2.1	0.0	25.5	(32.0)	15.2	1.1	8.4
Taxes	€m		(15.1)	(16.8)	5.7	(3.2)	(7.6)	(9.9)	(6.8)	(2.6)	(1.0)	(6.4)
Others	€m		(15.8)	(23.0)	(7.9)	(4.0)	(2.2)	(1.7)	(5.9)	(7.7)	(5.3)	(4.2)
Free Cash Flow	€m		124.0	101.1		24.3	33.6	27.5	38.6	(10.5)	41.8	33.3	36.5
Dividends	€m		(49.6)	(55.3)		(22.7)	-	(26.9)	-	(25.0)	-	(30.3)	-
Net debt variation	€m		74.4	45.8		1.6	33.6	0.6	38.6	(35.5)	41.8	3.0	36.5
NET DEBT	€m		1,532.1	1,486.3		1,604.9	1,571.3	1,570.7	1,532.1	1,567.5	1,525.8	1,522.8	1,486.3

Balance Sheet			Annual
	Unit		2018	2019
Non-current Assets	€m	2,721.0	2,750.3

Quarterly

Q1 18	Q2 18	Q3 18	Q4 18	Q1 19	Q2 19	Q3 19	Q4 19
2,748.7	2,737.1	2,725.1	2,721.0	2,779.1	2,765.1	2,754.5	2,749.0

Intangible assets	€m	1,335.7	1,324.2		1,345.8	1,338.6	1,337.5	1,335.7	1,332.7	1,329.5	1,324.9	1,324.2
Tangible assets	€m	1,252.4	1,288.8		1,268.8	1,259.4	1,248.7	1,252.4	1,312.2	1,302.7	1,292.9	1,288.8
Financial assets	€m	7.8	8.9		7.6	8.5	8.3	7.8	9.1	9.0	8.4	8.9
Deferred tax assets	€m	125.1	128.3		126.5	130.6	130.7	125.1	125.1	123.8	128.3	127.1
Current Assets	€m	177.7	173.6		141.1	145.3	164.4	177.7	144.1	149.5	158.8	168.2
Inventories	€m	6.0	4.2		4.5	4.3	4.0	6.0	5.7	6.4	6.1	4.2
Trade and other receivables	€m	64.3	71.1		76.6	70.2	65.6	64.3	66.6	62.5	71.4	65.8
Cash and cash equivalents	€m	107.4	98.2		60.0	70.9	94.8	107.4	71.8	80.6	81.3	98.2
TOTAL ASSETS	€m		2,898.7	2,923.9		2,889.8	2,882.4	2,889.5	2,898.7	2,923.3	2,914.6	2,913.4	2,917.3
Total Shareholders' Equity	€m	974.9	982.8		978.7	966.3	983.5	974.9	987.3	967.9	986.8	982.0
Non-current Liabilities	€m	1,562.2	1,536.2		1,695.0	1,592.4	1,675.3	1,562.2	1,619.7	1,554.7	1,558.6	1,533.9
Long term debt	€m	1,447.3	1,369.0		1,579.8	1,482.9	1,565.1	1,447.3	1,444.9	1,388.5	1,390.1	1,369.0
Provisions	€m	-	-		1.3	-	-	-	-	-	-	-
Other non-current liabilities	€m	114.9	167.2		114.0	109.5	110.2	114.9	174.8	166.2	168.5	164.9
Current Liabilities	€m	361.6	404.9		216.1	323.7	230.7	361.6	316.3	392.0	367.9	401.4
Short term debt	€m	154.1	194.8		67.5	126.8	68.9	154.1	154.4	185.5	192.1	195.3
Trade and other payables	€m	207.5	210.1		148.6	196.9	161.8	207.5	161.9	206.5	175.8	206.1
Total Liabilities	€m	1,923.8	1,941.1		1,911.1	1,916.1	1,906.0	1,923.8	1,936.0	1,946.7	1,926.5	1,935.3
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	€m		2,898.7	2,923.9		2,889.8	2,882.4	2,889.5	2,898.7	2,923.3	2,914.6	2,913.4	2,917.3

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Q4 2019 results