Telefónica S A : Telefónica completes the sale of Telxius’ towers after the closing of the deal in Latin America

• The company finalises three processes in the same week: the sale of the tower business in Europe, the launch of the joint venture in the UK, and the sale of the tower division in Latin America which is announced today.

• Telefónica accelerates the execution of its strategic plan, focused on active business management and based on value creation and debt reduction.

Madrid, 3rd June 2021. Telefónica today announced the completion of the sale of Telxius' tower business in Latin America to American Tower Corporation (ATC), with a presence in Brazil, Peru, Chile and Argentina. Telxius has received a payment of approximately €0.9 billion for this transaction.

With this announcement, Telefónica completes the sale of Telxius' tower business, announced the 13th of January. Just two days ago, the company announced to the market the sale of the tower business in Europe, for which Telxius received a payment of €6.2 billion. In addition, it is expected that next August, ATC will also acquire the towers that Telxius committed to acquire on that date, in compliance with the second phase of the agreement signed between Telxius and Telefónica Germany in June 2020.

Also considering the launch of the joint venture in the UK last Tuesday, Telefónica closed three operations this week, all of them managed during the pandemic. All three are proof of the intense level of execution of the strategic plan presented by the company in November 2019, and an example of the commitment to an active business management, value creation and the acceleration of organic debt reduction.

In this way, the proceeds received from the sale of the towers in Latin America will contribute to reduce the company's net debt by approximately €0.5 billion, so that the transactions announced this week, together with the inorganic operations pending closing, will reduce the Group's net debt by approximately €9 billion.