#1AT&T Analyst & Investor Conference March 11, 2022 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#2Introduction Amir Rozwadowski Senior Vice President, Finance & Investor Relations © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#3Cautionary Language Concerning Forward-looking Statements Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this presentation based on new information or otherwise. This presentation may contain certain non-GAAP financial measures. Information about non-GAAP financial measures is contained in the annex and reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at www.att.com/investor.relations. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#4Our Vision Forward John Stankey CEO © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#5AT&T Delivered in 2021 *See the appendix for further information. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners More mobility postpaid phone net additions than in the past 10 years 1+ Million Fiber net additions for the fourth straight year 13+ Million HBO Max and HBO additional subscribers*#6Today's Takeaways 1 Expanding 5G and Fiber 2 Differentiated path Bringing value Serving customer segments and setting us up for growth in unique ways 3 Reshaped cost structure Improving our cash flows 4 Focused execution and approach Driving returns and value creation © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#7Dawn of a New Age of Connectivity © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#85x increase Data on Our Network 2021-2025 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#9There has never been a better time...to make Internet for all a reality. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#10・・・・ Taking Our Performance To The Next Level © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#11AT&T is Well Positioned in Today's Evolving Macro Environment © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#12The AT&T Opportunity Strong cash flows Dividend yield among best in Fortune 500 Increased financial flexibility Clear upside tied to expanding growth opportunities © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#13Today's Lineup Network: Investing In Our Foundational Strength Jeff McElfresh, CEO, AT&T Communications Consumer: Disciplined Growth & Fiber Opportunities Jenifer Robertson, Executive Vice President & General Manager - Mobility Business: Driving Durable Value with Fiber and 5G Rasesh Patel, Executive Vice President - Chief Product & Platform Officer Cost Transformation: Sharpening Our Focus Jeff McElfresh, CEO, AT&T Communications Financial Outlook: Path to Sustainable Growth Pascal Desroches, Senior Executive Vice President & CFO © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#14Network: Investing In Our Foundational Strength Jeff McElfresh CEO, AT&T Communications © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#15Consumer 4K streaming/gaming Smart home Work from home Today Future 0.9 4.6 Terabytes Terabytes ©2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#16The demand for bandwidth continues to accelerate Uplink and Downlink Consumption Trends Usage Per Sub (GB) Downlink 78 Uplink 7 2015 COVID-19 2022 480 Today Future Connected 13 ~40 devices devices 54 54 Daily Video streaming 3 5 hours Monthly Mobile 11 50 GB Source: AT&T Labs Outlook © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Evolving use cases Unicast 4K/8K AR / VR Conferencing Gaming#17Small Business Midmarket Retail and mobile businesses Connected devices Security / SD-WAN Today Future 0.6 2.2 Terabytes Terabytes 100 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#18Enterprise Distributed/remote worker Edge locations Expanding security perimeter Today 170 → Petabytes Future 1400 Petabytes © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#19Fiber is foundational Experience Multi-gig capable Speed Symmetrical/low latency Sustainable Enables critical technologies ་ ་ ་ ་ ་ ་ ་ ་ ་ © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#20Fiber remains economical as data consumption increases Cost to serve by monthly consumption ☐ 25 GB 100 GB 500 GB 1 TB 2 TB 3 TB 4 TB 5 TB Source: AT&T Labs © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Wireless w/Spectrum Wireless Fiber AT&T#212022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners U.S. market opportunity ~50M Suburban/ Urban areas .: ~10M Business locations#22Wireless assets are strong 99.5% Reliability 2.9M Total Square Miles 8 Qtrs. Consecutive Improvement Overall Network satisfaction © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#23Spectrum deployment strategy: ONE touch Spectrum Holdings Average MHz by Band as of 1/2022 Low Band 73 Mid Band FDD Mid Band TDD 120 287 94 Strong low band coverage Solid mid-band position Consistent experience © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners ATAT#24Deliberate capital investment deployment strategy Fiber Build Plan 30M+ ~3.5-4M Customer Locations by 2025 Annually CONSUMER 25M+ Locations SMALL BUSINESS/ MIDMARKETS 4M Locations 5G+ Mid Band POPs Covered ~200M by 2023 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners LARGE BUSINESS 1M Locations#25Consumer: Disciplined Market Share & Fiber Opportunities Jenifer Robertson Executive Vice President & General Manager - Mobility © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#26© 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Our most loyal customers want to feel valued#27Growing the value of the base Postpaid Voice Net Adds 3.2M Highest on record +2X YOY Installment Plan 75% on Unlimited Plans 27% on highest ARPU plan ~80% Postpaid Voice Base © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#28منا +14% Customer Value © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#29© 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Simple Unlimited Your Way Reliable Best Deals for Everyone Secure Active Armor#30© 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Share of Postpaid phone net adds ~34% ~8% 2019 2021 INDUSTRY LEADING#31Midmarket and Public Safety Growth through business relationships Þ |||| ~6M Midmarket businesses 17M multi-line subscribers Expanded distribution ©2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#32Hispanic Segment Growth through diverse segments ~~2% Annual growth rate Differentiated products and local distribution USA SIEMPRE LOCAL Dos países. Una red. Solo con AT&T. Disponible para clientes de EEUU. Se requiere un plan elegible. Las velocidades, coberturas y demás tienen restricciones adicionales. Visita att.com/unared para más detalles. México © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#33Wireless Cross-Sell Growth through fiber 50% higher Wireless market share in fiber footprint Targeted offers and proactive distribution © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#34© 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Speed Hyper-gig symmetrical Security Active Armor included Simplicity No contracts, straightforward pricing#35AT&T is accelerating penetration at record rates Current penetration Total Fiber Pen ~37% 2021 ~23% © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners 2X 2018 ONE YEAR PEN RATE#36© 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Superior product and strong competitive position Mid to high teens Fiber returns#37Business: Driving Durable Value with Fiber and 5G Rasesh Patel Executive Vice President - Chief Product & Platform Officer © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#38Strong relationships in Enterprise position us for Fiber & 5G transformation J Trusted Brand in Enterprise Relationships with ~90% of Fortune 1000 Leader in CX JD Power for Large/Medium Businesses Leader in Connecting Businesses ~70% of enterprise customers buy wireline and wireless services Taking share with FirstNet IoT Leadership 95M+ Connected Devices (as of 2021) © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#39Expanding Fiber Footprint to Small & Midmarket Businesses - Integrated fiber plan – business Customer Locations (M) 3 2021 2022 2023 2024 2025 5 1. In-Market Broadband Share for Small Business © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Expand Small Business Broadband Share from low 20s to ~30%1 IRR = low to mid twenties AT&T#40Expanding Share in Small Business and Midmarket Profitable Growth Opportunity >80% New or switching to AT&T Durable Relationships >60 Months ~$10k LTVS rad tr 13-20 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#41Expanding Share in Small Business and Midmarket Fiber Retail Businesses (8) Fixed Wireless Mobile Businesses Expanding Distribution Improved reach & simplified CX 13-20 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#42Accelerated momentum in Business Mobility 53% 2021 Flow Share in Postpaid Phone¹ Taking a majority of highest value Business Mobility services 54% 2021 lot Connectivity Share² # 1 IoT Mobile Network Operator in the U.S. 1. Modeled using Competitive and Market Analyst publicly reported data. 2. Thru 3Q21 © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners 3.4#43FirstNet is America's public safety network Taking Share in Public Safety 3M Connections in four years Modernizing Public Safety Platform Expansion Body Cams, Fleet & Surveillance Business ~$1.7B +60% YoY Push to Talk Interoperability to over 7.2M Radio Users Network Coverage Band 14 deployment >95% completed © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners = FIRSTNET. Built with AT&T#44>50M Connected cars ↓ 80%+ Market share Positioned to Win as Auto industry transitions to EV & Autonomous T TESLA Ford gm H TOYOTA HONDA MAZDA STELLANTIS VOLVO NISSAN © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#45Our next set of verticals 250 Manufacturing $20B Addressable TAM by 2026 Next gen connected factory Healthcare 78x Increase in telehealth in the month immediately following COVID © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#46Next generation of enterprise services AV ©2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&ated companies. All other marks are the property of their respective owners Network Edge Private 5G Hybrid Work#47Reorienting the business Business wireline EBITDA¹ mix Fiber & Fixed Wireless Other 84% 16% 2021 ↑ 56% 44% 2025 1. See appendix for further information on Non-GAAP measures. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Driving durable value thru Fiber and 5G Take share in Small Business and Midmarket Expand vertical model and next gen services Streamline Product Portfolio and deliver stable EBITDA margins AT&T#48Cost Transformation: Sharpening Our Focus Jeff McElfresh CEO, AT&T Communications © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#4920% Fiber in 2021 Sharpening focus on network footprint $ Reinvest ONE Network ↓ 75%+ Fiber & 5G by 2025 88 50% Reduction Fiber (8) Wireless Copper $ Reinvest © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#50ONE Platform Enabling our customer experience Streamlining internal infrastructure Portfolio Billing Systems Data Centers Applications Real Estate St III 00 III 00 III 00 111 00 200 Reduction 30 Reduction 20 Reduction 1500 Migration ak 15M Sq ft Reduction © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#51On track to deliver $6B benefit by 2023 ~$3B+ Customer Related / Product Simplification Network Efficiencies & Dispatch G&A / Internal Infrastructure Program to Date © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#52Financial Outlook: Path to Sustainable Growth Pascal Desroches Senior Executive Vice President & CFO © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners#53Capital Allocation Framework Investing for growth Maintaining an attractive dividend Strengthening the balance sheet Increasing financial flexibility to maximize shareholder value Focused Total Return Strategy © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#54Financial Outlook AT&T Pro Forma* 2021 2022 Guidance* 2023 Total Revenue $118.2 billion Low single digit growth Low single digit growth Wireless Service Revenue $57.6 billion 3%+ growth Low single digit growth Broadband Revenue $9.1 billion 6%+ growth Mid to high single digit growth Adjusted EBITDA* Adjusted EPS* Capital Investment* Subset: 5G Spectrum Deployment $40.3 billion $41 $42 billion $2.41 $2.42 - $2.46 ~$20.1 billion ~$1 billion ~$24 billion ~$5 billion $43.5 $44.5 billion $2.50 - $2.60 ~$24 billion ~$5 billion Free Cash Flow* $19.2 billion (includes impact from vendor financing payments) $16 billion range Free cash flow* is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. *See appendix for further information on Non-GAAP measures and Pro Forma results. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners $20 billion range AT&T#55Free Cash Flow Walk - 2021 to 2022 In billions $19.2 2 ~ $1 2 $1 ~ ($4) 2 ~ $1 2021 AT&T Pro '22 Higher capital 2 ($2) Lower cash interest Trans. savings Organic growth Forma Free investment* '22 and other Cash Flow* Higher working cash taxes capital savings Adjusted EBITDA* growth 2021 Free cash flow* is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. *See appendix for further information on Non-GAAP measures and Pro Forma results. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners 2 ~ $16 2022 includes ~$24B in Capital Investment* 2022 AT&T#56Free Cash Flow Walk - 2021 to 2022 2022 Adj. EBITDA* organic growth drivers: • . Mobility growth from growing subscriber base and stable ARPU and ramping MVNO volumes Consumer Wireline growth with accelerating broadband revenue growth from Fiber ⚫ Business Wireline trend improvement • ~$1B in incremental transformation savings ~$1B in cash interest and other working capital savings Free cash flow* is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. *See appendix for further information on Non-GAAP measures and Pro Forma results. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#57Free Cash Flow Walk - 2022 to 2023 In billions ~ $16 2 2022 AT&T Pro Forma Free Cash Flow* Guidance 2022 ~ $1.5 ~$20 ~ $1-2 2 $2 2 ~ ($1) Organic growth Trans. savings 2023 includes ~$24B in Lower cash '23 lower DIRECTV cash interest and other Capital Investment* working capital Adjusted EBITDA* growth savings Free cash flow* is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. *See appendix for further information on Non-GAAP measures and Pro Forma results. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners 2023 AT&T#58Free Cash Flow Walk - 2022 to 2023 2023 Adj. EBITDA* organic growth drivers: • Mobility growth from growing subscriber base, strong ARPU, higher MVNO volumes and roaming recovery . Consumer Wireline growth with accelerating broadband revenue growth from Fiber ⚫ Business Wireline exiting with growth in higher margin SMB connectivity solutions offsetting legacy pressures ~$1.5B in incremental transformation savings ~$2B in cash interest and other working capital savings Expect 2023 to be peak capital intensity* Free cash flow* is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. *See appendix for further information on Non-GAAP measures and Pro Forma results. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#59OVER $3B RUN-RATE SAVINGS Transformation Over $3B of transformation savings to date have been absorbed that are expected to be tailwinds going forward Network Efficiencies & Dispatch FUTURE TAILWINDS Customer Related/ Product Simplification G&A/Internal Infrastructure International Roaming Advertising and Promotional Impacts Transformation Investment © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#60Expect AT&T to emerge as a simplified, more focused and purpose-driven company committed to growth and creating shareholder value © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#61Wrap up © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T#62Appendix - Non-GAAP Measures AT&T Pro Forma for 2021 reflects the historical operating results of the company excluding certain businesses (WarnerMedia, Xandr, Playdemic, Otter Media, Vrio, Video and other dispositions included in Corporate and Other), as if such transfers occurred as of January 1, 2020, and reflects many but not all adjustments required for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. See our Form 8-K dated March 11, 2022 for further discussion and information. Guidance for 2022 and 2023 is presented on a comparable basis to AT&T Pro Forma for 2021. EBITDA and Adjusted EBITDA are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. EBITDA is operating income before depreciation and amortization. Adjusted EBITDA is calculated by excluding from operating revenues, operating expenses and income tax expense certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairment, severance and other material gains and losses. For 2021, reconciliation of Business Wireline EBITDA to the most directly comparable GAAP measure is provided in the 4Q21 Financial and Operational Schedules & Non-GAAP Reconciliations document on our Investor Relations website, investors.att.com. For 2021, reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is included in our Form 8-K dated March 11, 2022. EBITDA and Adjusted EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected EBITDA and projected Adjusted EBITDA and the most comparable GAAP metrics without unreasonable effort. Adjusted earnings per share. Adjusted EPS is calculated by excluding from operating revenues, operating expenses and income tax expense certain significant items that are non-operational or non-recurring in nature, including disposition and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairment, severance and other material gains and losses. For 2021, reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in our Form 8-K dated March 11, 2022. The company expects adjustments to 2022 and 2023 reported diluted EPS (that excludes any impact of adoption of new accounting standards) to include the proportionate share of intangible amortization at the DIRECTV equity method investment in the range of $1.5 billion for 2022 and $1.3 billion for 2023, a non-cash mark-to-market benefit plan gain/loss, and other items. The company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. Our 2022 and 2023 Adjusted EPS depends on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between these projected non-GAAP metrics and the reported GAAP metrics without unreasonable effort. Capital investment includes capital expenditures and cash paid for vendor financing. For 2021, reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in our Form 8-K dated March 11, 2022. In 2022, AT&T Capital Investment is expected to be in the $24 billion range (with capital expenditures in the $20 billion range and vendor financing payments in the $4 billion range). Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metrics without unreasonable effort. Capital intensity is calculated as operating revenues divided by Capital Investment. Free cash flow is a non-GAAP financial measure that is frequently used by investors and credit rating agencies to provide relevant and useful information. Free cash flow is defined as cash from operations and cash distributions from DIRECTV (classified as investing activities) minus capital expenditures and cash paid for vendor financing. For 2021, reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in our Form 8-K dated March 11, 2022. Our projected total dividend payout ratio for 2023 is calculated as expected total dividends paid of $8.2 billion ($8.0 billion common and $0.2 billion preferred) divided by projected free cash flow of approximately $20 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, cash distributions from DIRECTV, capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort. Net Debt to adjusted EBITDA ratios are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt (calculated as total debt less cash and cash equivalents) by the sum of the most recent four quarters of Adjusted EBITDA. Global HBO Max and HBO subscribers consist of domestic and international HBO Max and HBO subscribers, and exclude free trials, basic and Cinemax subscribers. Domestic HBO Max and HBO subscribers consist of U.S. accounts with access to HBO Max (including wholesale subscribers and subscribers receiving access through bundled services with affiliates that may not have signed in) and HBO accounts, and exclude free trials and Cinemax subscribers. International HBO Max and HBO subscribers consist of non-domestic accounts with access to HBO Max and HBO accounts, and exclude free trial, basic and Cinemax subscribers. © 2022 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T