Interim announcement on the first quarter of 2022:Telefónica Deutschland starts strongly into fiscal year 2022

Telefónica Deutschland has confirmed its strong momentum from the record year 2021 and again grew dynamically in the opening quarter of 2022. The operating momentum accelerated further in the process. The number of contract lines in mobile communications increased by 287,000 and was thus above the prior-year figure of 220,000. The portfolio of the core brand O₂ continues to be equally attractive for new and existing customers, which is reflected in a low churn rate of 1.2%. Telefónica Deutschland achieved a 5.2% increase in revenues. This very strong revenue development translated into a disproportionately strong earnings development. OIBDA adjusted for special effects climbed significantly by 7.2% year-on-year. The company reaffirmed its sales and earnings targets as well as its investment plans for the full year 2022.

By the end of the first quarter of 2022, Telefónica Deutschland has reached an important milestone in its nationwide 5G network expansion offensive: around 10,000 5G antennas are transmitting on the O₂ network. This means that O₂ currently supplies around 40% of the population with 5G. After the launch of the 5G network in October 2020, O₂ has continuously accelerated its network expansion and brought the mobile high-speed standard to more and more cities and also rural communities. The company is consistently continuing its network expansion offensive: by the end of the year, the provider will cover half of the population with its 5G network, and the whole of Germany by the end of 2025.

The investments in network expansion combined with an excellent price/performance ratio have resulted in further strong growth in the number of mobile customers. The company recorded 287,000 new mobile postpaid adds (excluding M2M) in the first quarter of the 2022 financial year, further accelerating the strong momentum. In the previous year, the number of mobile postpaid adds was 220,000. The churn rate was a low 1.4 percent on average per month. At O₂, this figure was even lower at 1.2 percent. The business customer segment was able to confirm its positive development.

O₂ celebrated its 20th birthday on May 1. The core brand of Telefónica Deutschland has repeatedly shaped the telecommunications market in this country with innovative products. To mark its 20th birthday, the company presented another innovation: the O₂ Grow promotional rate. It is Germany's first mobile rate plan that automatically grows in line with increasing data usage: customers are automatically added 10 GB per month every year at no extra charge.

At Telefónica Deutschland, profitable growth and sustainability go hand in hand. In terms of ESG - Environmental, Social and Governance - the company has set itself ambitious targets as a pioneer in its industry. The O₂ network is already powered 100 percent by green electricity, making it net CO₂ neutral. As a whole company, Telefónica Deutschland aims to be net CO₂ neutral by 2025 at the latest. This is the goal of the Responsible Business Plan 2025 with a total of 76 sustainability measures. One example is the company's "Reduce-Repair-Recycle" measures. By shipping around 8.6 million SIM cards in half-SIM card format, we also saved over 17 tons of plastic in 2021. These and many other facts and figures on our commitment to the environment and society can be found in the recently published Corporate Responsibility Report 2021.

Based on the good development in the first quarter, the company confirmed its sales and earnings targets as well as its investment plans for the full year 2022.