Press Releases Telefónica Germany

OIBDA(1) up by a substantial 20.5%(2) in the 2015 financial year | Mobile service revenues stable (+0.1%) in line with guidance | Low to mid single-digit percentage OIBDA growth targeted in 2016 as integration continues with a number of major projects | Mobile service revenues expected to be slightly negative to broadly stable in 2016 in a market that remains challenging | Proposed cash dividend for 2015 unchanged at 0.24 Euro per share

Telefónica Deutschland will from now on apply innovative methods of data analysis for its network planning. Telefónica has developed an algorithm that aligns in particular the expansion of the LTE network to meet the customers’ actual needs. This new algorithm for the best network experience allows for an optimum management of investments and targeted improvements of customers’ experience.

O₂ will become the sole brand in the premium segment | Same service at an unchanged price | Technical integration into a consistent system platform

Telefónica in Germany now also offers payment through mobile phone billing for the Windows Store. This way, all O₂ contract and prepaid customers can quickly and conveniently purchase digital content such as apps, games, and music in the new Windows Store – whether they are on their Windows 10 notebook, tablet, PC. This easy and convenient way of paying via phone bill is now available for O₂ customers in all major app stores.

Creation of consolidated network with optimal distribution of transmitter sites | Customers will benefit from combined strength of O₂ and E-Plus network infrastructure | Network integration to begin with GSM and UMTS – joint LTE from mid-2016 | Telefónica starts planned realization of large-scale synergies in the network

2015 OIBDA outlook updated to 15 to 20% y-o-y growth(1,2) | Broadly stable mobile service revenues expected / + 0.4%(1) in the first nine months | Proposal for cash dividend(3) of 0.24 Euro/share for the financial year 2015

Strong 13.5% y-o-y(1) increase of OIBDA in the second quarter reflects early benefits from integration and ongoing focus on customer base development | Revenue growth of 2.1% y-o-y for the first six months 2015 leveraging momentum in the market and focus on mobile data monetisation | Tangible results for customers from 3G national roaming and LTE expansion

Agreement supports Telefónica Deutschland in the fast realisation of synergies from network integration | Telefónica Deutschland takes the next step to optimize customers network experience and accelerates LTE roll-out | Telekom customers to benefit from the additional power of the mobile network

With immediate effect, customers in the O₂ and E-Plus network benefit from a very good UMTS network. This week, Telefónica Deutschland completed its technical large-scale project as planned, with national roaming between the UMTS networks of O₂ and E-Plus having been activated. By consequence, Telefónica now offers the densest UMTS coverage in urban regions, expanding it further in rural areas.

Tangible customer benefits due to network enhancements and attractive new products | Revenues grow 2.9% y-o-y to 1.90 billion Euro | Mobile service revenues increase by 1.5% y-o-y | Strong underlying OIBDA (+5.7% y-o-y) reflects focus on customer base development | Outlook and synergy target for 2015 confirmed | CEO Thorsten Dirks: “We came out of the blocks well at the start of the year”

Telefónica Deutschland is using the merger with E-Plus to position itself as leading digital telecommunications company. This goal is also the title of the presently published Annual Report 2014: Building the leading digital Telco. It documents our strategy and shows first successful steps on our path towards becoming a digital telecommunications provider.

Number of customer accesses increased to 47.7 million at year-end 2014 | Integration process fully on track with first milestones successfully completed | Combined annual revenues of 7.79 billion Euro in 2014 | Underlying combined(1) OIBDA reached 1.46 billion Euro in 2014 | OIBDA excluding material extraordinary effects to increase by more than 10% in 2015

On January 2, 2015 Telefónica Deutschland has closed the deal regarding the planned transfer of yourfone GmbH (a company of E-Plus) with long-time business associate Drillisch AG as announced in mid-November. Drillisch acquires yourfone GmbH including all trademark rights, customers and staff.

374 thousand net additions in mobile postpaid customer segment | Sustained improvement in revenue trend | Strong conversion of operating cash flow into free cash flow | Integration of E-Plus Group started at full speed | Confirmed synergies of more than 5 billion Euro

Telefónica Deutschland has completed the acquisition of the E-Plus Group.

Today Telefónica Deutschland Holding AG is beginning with the implementation of the cash capital increase for the partial financing of the cash consideration for the acquisition of E-Plus.

Telefónica Deutschland has received the EU Commission’s final clearance for the acquisition of the E-Plus Group.

Positive indications for revenue performance in a competitive market | Significant increase in postpaid net additions | Strong generation of Free Cash Flow

Telefónica is launching its first smartphone with Firefox OS in Germany. For the first time, O₂ customers can now use an innovative open operating system developed by a non-profit organization: the Mozilla Foundation.

Thorsten Dirks nominated as new CEO | Markus Haas in charge for all joint operations as COO | Rachel Empey takes responsibility for finance and strategy as CFO | Munich remains headquarters of the company

Today, Telefónica Germany brings its latest cloud offer on the market: Digital Phone from O₂ is a telephone system for business customers.

Double digit growth of Non-SMS data revenues in a competitive market | Free Cash Flow increases to 107 million Euro | LTE pop coverage increases and achieves 50 percent end of April

Consistent execution of corporate strategy in a competitive market | Growth in data revenues of 21.7% | Strong Free Cash Flow generation

Very successful debut on the international bond markets | High demand led to more than 3x oversubscribed orderbook | Deal volume upsized to €600 million

Data revenues increase by 20.2 percent | 110,000 new prepaid customers | Revenue trends stabilizing | Investments lay the foundation for future success