#1AT&T Investor Update 4th Quarter Earnings January 27, 2021 Q4 2020 AT&T EARNINGS © 2021 AT&T Intellectual Property. AT&T, Globe logo and DIRECTV 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.#2N Cautionary 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. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com. The "quiet period" for FCC Spectrum Auction 107 is in effect. During the quiet period, auction applicants are required to avoid discussions of bids, bidding strategy and post-auction market structure with other auction applicants. Important additional Information: AT&T has filed a Form 8-K reporting the quarterly results for the fourth quarter of 2020. The 8-K must be read in conjunction with this presentation and contains additional important details on the quarterly results. © 2021 AT&T Intellectual Property.#32020 - Execution of Customer-Focused Priorities Despite COVID Challenges Solid execution yields customer gains ~1.5 million postpaid phone additions, highest since 2011 1 million+ fiber broadband net adds with market penetration reaching ~34% Total U.S. HBO Max/HBO subs¹ top 41 million 3 ● Strong cash flows support significant investment and shareholder return Generated $27.5B in free cash flow² in 2020, yielding a dividend payout ratio of 54.5%² Invested ~$20B in gross capital investment³; significant investment in HBO Max Effectively extended near-term debt maturities; reduced net debt by ~$33B since TWX close ● ● Business transformation to drive efficiencies and fund investment Aligned resources to areas of strategic focus Continued cost management across the company Optimized sales distribution thru innovation ● ● ¹Domestic HBO Max and HBO subscribers exclude customers that are part of a free trial and exclude Cinemax. 2 See footnote 2 on slide 7. 3 See footnote 3 on slide 7. © 2021 AT&T Intellectual Property.#44 2021 Priorities Grow customer relationships 5G wireless and fiber-based connectivity Expanding breadth and reach of software-based entertainment platforms Commitment to customer experience and engagement ● ● ● Being effective and efficient in everything we do Transformation continues, funding growth Improving customer service to meet evolving customer needs Improving positioning for post-pandemic environment ● ● Deliberate capital allocation Investing in strategic growth - 5G, fiber, HBO Max Committed to sustaining dividend at current levels Utilizing cash after dividends to reduce debt Continued portfolio review - restructuring non-core assets ● ● ● © 2021 AT&T Intellectual Property.#5Q4 2020 AT&T EARNINGS 4Q20 Results © 2021 AT&T Intellectual Property.#64Q20 - Subscriber Momentum Continues 6 Postpaid Phone Subscribers millions 63.0 63.1 62.9 63.5 1.07% Broadband Connectivity millions 3.9 4Q19 1Q20 2Q20 3Q20 4Q20 Postpaid phone subscribers Postpaid phone churn 28% Fiber Subscribers 4.1 4.3 64.2 4.7 0.76% 5.0 34% 4Q19 1Q20 2Q20 3Q20 4Q20 Fiber subscribers Penetration Net Adds 229K 800K 4Q19 4Q20 Net Adds 191K 273K 4Q19 4Q20 © 2021 AT&T Intellectual Property. Software-Based Entertainment HBO Max and HBO Subscribers millions 34.6 33.1 36.3 38.0 (946) 4Q19 1Q20 2Q20 3Q20 4Q20 41.5 Total U.S. HBO Max and HBO Subscribers Premium TV Losses thousands 4Q19 1Q20 2Q20 3Q20 4Q20 (897) (887) (591) (617)#74Q20 Financial Summary $ in billions, except EPS Adjusted EPS Adj. Ol Margin $0.89 ● 19.6% $0.75 17.1% 4Q19 4Q20 Reported EPS Adjustments: • Impairments¹ 4Q20 Revenues $46.8 Actuarial loss on benefit plans • Amortization of intangibles ● • Other adjustments Adjusted EPS $45.7 4Q19 4Q20 Cash from Ops CAPEX Free Cash Flow $11.9 $3.8 $8.2 4Q19 $0.33 $10.1 $2.4 4Q19 4Q20 $0.16 $0.12 $0.19 $0.09 $0.89 $7.7 4Q20 ($1.95) $2.02 $0.43 $0.22 $0.03 $0.75 Adjusted EPS of $0.75 ● Revenues of $45.7 billion Communications segment revenue growth Customer base momentum drives sequential growth Estimated COVID impacts of ($2.5B) ● ● COVID impacts of ($0.08) Strong cash flows and liquidity position $7.7B free cash flow,2 $27.5B for 2020 ● ● 2020 total dividend payout ratio² of 54.5% 2020 full-year gross capital investment³ of ~$20B $147.5B in net debt; ~$10B cash on hand at end of 4Q20 ¹4Q20 includes non-cash impairments of $1.91 for the Video business and $0.09 of WarnerMedia production and other content inventory. 2Free 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 cash from operating activities minus capital expenditures. For 2020, Cash from operating activities was $43.1 billion and 2020 capital expenditures were $15.7 billion. Free cash flow total dividend payout ratio is total dividends paid divided by free cash flow. In 4Q20, dividends paid totaled $3.741 billion. For 2020, dividends paid totaled $14.956 billion. ³Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes FirstNet reimbursements. In 4Q20, gross capital investment included $1 billion in vendor financing payments and excluded $920 million of FirstNet reimbursements. In 2020, gross capital investment included $3.0 billion in vendor financing payments and excluded $1.1 billion of FirstNet reimbursements. In 2021, vendor financing payments are expected to be in the $2 billion range and FirstNet reimbursements are expected to be about $1 billion. © 2021 AT&T Intellectual Property. 7#88 4Q20 Communications Segment $ in billions REVENUES EBITDA MARGIN Mobility $18.7 $7.5 40.3% 4Q19 $2.5 38.4% 4Q19 Business Wireline $6.6 $6.3 $20.1 $2.0 $7.1 18.2% 4Q19 35.3% 4Q20 $2.3 O 36.8% 4Q20 EBITDA Strong subscriber momentum continues Successful promotions drove customer growth and lower churn $3.1 $1.1 Business Wireline continues to deliver solid margins Growth in strategic and managed services helped offset declines in legacy services revenues COVID-related estimated revenue impact of ~($100M) Continued focus on higher-margin products and services ● Broadband & Video (formerly Entertainment Group)¹ Combined¹ $11.2 $7.2 ● O Near-record postpaid phone churn of 0.76% - full year 0.79% o Service revenues returned to growth as subscriber gains offset roaming declines of ~($200M) ● Broadband Video Combined¹ $10.3 $1.7 $0.6 16.8% 4Q20 4020 4020 Focus on fiber and high-quality customer base 273,000 fiber net adds in 4Q; 1 million+ in 2020 Premium TV net loss improvement (617K) due to lower churn ● ● ¹For comparative purposes, Combined represents the historical Entertainment Group business unit that is calculated by combining the Video and Broadband business units, adjusted to remove the business video operations previously reported in the Business Wireline business unit. © 2021 AT&T Intellectual Property.#99 4Q20 Warner Media Segment $ in billions EBITDA WarnerMedia $9.5 $3.0 31.8% 4Q19 REVENUES EBITDA MARGIN $1.8 $8.6 $205M 4Q19 $2.7 31.8% 4Q20 Latin America $1.5 HBO Max investment supports strong subscriber growth Total HBO Max/HBO U.S. subscribers top 41 million ~$800M investment in 4Q20; more than $2B in 2020 $95M 4Q20 ● 4Q20 Latin America Segment $ in billions REVENUES EBITDA Theatrical/TV impacted by COVID; subscription and advertising were resilient ($1.6B) estimated revenue impact from COVID from lower Theatrical and TV revenues Subscription revenues up 8% with HBO Max driving organic growth Advertising revenues up 7% with higher political and news; partially offset by sports ● ● ● Subscriber trends improved as year progressed; financial results reflect FX impacts Mexico wireless net additions of 529K ● ● Vrio video subscriber net additions of 49K FX revenue impact of ~($225M) and EBITDA impact of ~($48M) © 2021 AT&T Intellectual Property.#10Q4 2020 AT&T EARNINGS 2021 Guidance © 2021 AT&T Intellectual Property.#112021 Consolidated Financial Guidance 11 REVENUE GROWTH EPS ADJUSTED¹ GROSS CAPITAL INVESTMENT² CAPITAL EXPENDITURES FREE CASH FLOW³ LONG-TERM DEBT MANAGEMENT 1% range Stable with 2020 $21B range $18B range $26B range ● ● ● ● ● KEY ASSUMPTIONS Wireless service revenue growth of ~2% Gradual improvement in WarnerMedia Modest Mobility EBITDA growth Increased HBO Max investment Cost transformation reinvested in growth Focus on fiber and wireless densification Expect ~$2B in vendor financing payments and ~$1B in FirstNet reimbursements Total dividend payout ratio in the high 50's% range Utilizing cash after dividends to reduce net debt Continued portfolio review for asset monetization ¹The company expects adjustments to 2021 reported diluted EPS to include merger-related amortization of about $5.9 billion and other adjustments, a non-cash mark-to-market benefit plan gain/loss, merger integration and other adjustments. Based on historical results, we expect 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 2021 EPS estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between our non-GAAP metrics and the reported GAAP metrics without unreasonable effort. 2 Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes expected FirstNet reimbursements 3 Free cash flow total dividend payout ratio is total dividends paid divided by free cash flow. Free cash flow is cash from operating activities minus capital expenditures. Due to high variability and difficulty in predicting items that impact cash from operating activities and capital expenditures, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort. © 2021 AT&T Intellectual Property.#12Q&A Q4 2020 AT&T EARNINGS © 2021 AT&T Intellectual Property.