Telefonica S A : La Compañía remite presentación sobre los resultados enero-diciembre 2020.

Results

January - December

2020

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2020 Highlights

Mr. José María Álvarez-Pallete

Chairman & CEO

Material progress against strategic objectives

Improving our value proposition across core markets:

• ✓ FTTH network; 25.2m premises passed in Spain and 15.7m in Brazil

• ✓ 78% 5G coverage in Spain; live in Germany, UK and Brazil. German network ranked "Very Good"

• ✓ JV with O2 UK/Virgin Media progressing to plan; won auction in joint bid for Oi mobile in Brazil

• ✓ Risk profile mitigation; maximising efficiencies and profitability; reduced equity exposure

• ✓ Independent neutral fibre network vehicle in Chile to reach 3.5m premises passed by FY 22

• ✓ Hispam legal separation completed, preserving optionality (disposal of CAM assets executed)

• ✓ Double-digit revenue growth

• ✓ Cloud, Cyber and IoT & Big Data carveouts almost completed and fully functional

• ✓ Developing additional capabilities, building IoT/Big Data portfolio, new Cloud solutions in Edge

• ✓ Sale of Telxius towers to ATC for €7.7bn, implied multiple of 30.5x proforma OIBDAaL

• ✓ Partnership with Allianz for Germany FTTH rollout, target of 2m rural & semi-rural premises passed

• ✓ Advanced talks to create a fibre wholesale network in Brazil; to pass >5.5m premises in 4 years

• ✓ 79% of all business processes digitalised in 2020, up 10 p.p. y-o-y and managed in real time

• ✓ FY 20 Group (OIBDA-CapEx)/Revenues up 0.5 p.p. y-o-y organic

• ✓ MoU signed with leading European telcos to promote Open RAN, successful testing

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