#1AT&T Investor Update July 26, 2023 2023 2nd QUARTER EARNINGS © 2023 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.#22 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. Information about non-GAAP financial measures is contained on slide 12 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. © 2023 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.#32023 Business Priorities 1 Grow durable 5G and Fiber relationships ● Execute consistent and disciplined go-to-market approach Implement tailored approach that delivers solutions to meet customers' needs Create and enrich profitable long-term customer relationships across 5G and Fiber 2 Effective and efficient in everything we do Achieve additional cost savings; expect an incremental $2B+ in targeted savings in addition to $6B+ realized ● ● ● Transform network to enable legacy rationalization Target incremental margin expansion with process improvements and workforce rationalization © 2023 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. 3 3 Deliberate capital allocation ● ● Invest for long-term growth- 5G and fiber Strengthen balance sheet by reducing net debt Provide an attractive dividend with improving credit quality AT&T#4Progression to Sustainable Growth Grow durable 5G and Fiber relationships Effective and efficient in everything we do Deliberate capital allocation ● ● ● ● Since 2Q20, added more than 8 million postpaid phones and grew AT&T Fiber subscribers by 3.4 million ● Increased quarterly wireless service revenues by $2B+ since 2020 and achieved industry-leading churn Doubled quarterly AT&T Fiber revenues since 2Q20 to $1.5B+ Executed cost transformation and achieved $6B+ in run-rate savings Increased Adj. EBITDA¹ margin: 210 bps improvement YOY Streamlined workforce Over past three years: Reduced net debtt2 by ~$20 billion Invested ~$65 billion in capital investment t3 and ~$35 billion in spectrum Passed additional ~7 million fiber customer locations Deployed 5G to cover ~300M people, 175M+ with mid-band spectrum © 2023 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. 4 t See notes slide 12 AT&T#55 2Q23 Financial Results © 2023 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.#65G and Fiber 6 Postpaid Phone Subscribers millions 68.3 $54.81 2Q22 70.3 6.6 $55.63 Postpaid phone subscribers Postpaid phone ARPU $61.65 2Q23 AT&T Fiber Subscribers millions 7.7 $66.70 2Q22 Fiber subscribers AT&T Fiber ARPU 2Q23 Mobility Service Revenues $ in billions $15.0 +4.6%* 2Q22 * YOY change $1.2 +28%* AT&T Fiber Revenues $ in billions $1.5 2Q22 $15.7 * YOY change +4.9%* 2Q23 +28%* 2Q23 © 2023 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. + See notes slide 12 Mobility EBITDA+¹ $ in billions $8.1 53.8% 2Q22 $8.7 $0.9 55.5% EBITDA EBITDA Service Margin †1 29.3% 2Q23 Consumer Wireline EBITDA+¹ $ in billions $1.0 31.5% 2Q22 EBITDA EBITDA Margin 2Q23 †1 AT&T#77 2Q23 Financial Summary Continuing Operations, $ in billions, except EPS Revenues $29.6 $29.9 2Q22 2Q23 Adjusted EPS+4 Adj. Ol Margin¹¹ Continuing Operations Reported EPS Adjustments: $0.65 $0.63 19.9% O 21.4% 2Q22 2Q23 DIRECTV intangible amortization (proportionate share) Actuarial and settlement (gain)/loss - net Non-cash restructuring and impairments Other adjustments Continuing Operations Adjusted EPS 2Q22 $0.59 Cash from Ops Free Cash Flow +5 $9.9 $0.04 ($0.13) $0.06 $0.09 $0.65 $7.7 $4.2 $1.4 2Q22 2Q23 2Q23 $0.61 $0.03 ($0.01) $0.63 © 2023 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. Revenue growth driven by subscriber and ARPU gains Revenues of $29.9B, up $0.3B Mobility service revenue growth of 4.9% Consumer broadband revenue growth of 7.0% Adjusted EPS of $0.63 Includes ~($0.07) impact from higher pension costs, lower equity income from DIRECTV and lower capitalized interest Cash from operations of $9.9B; $16.6B YTD, up $1.2B Free cash flowt5 of $4.2B; includes $0.6B from DIRECTV Capital expenditures of $4.3B Capital investment¹3 of $5.9B; includes $1.6B of vendor financing payments t See notes slide 12 2023 YTD free cash flowt5 of $5.2B, up $1B, with $0.8B lower DIRECTV cash and $0.7B lower net impact of receivable sales** **Net impact of receivable sales is calculated as cash proceeds received, net of remittances paid, from sales of receivables. AT&T#82Q23 Mobility Results Revenues EBITDA 1 EBITDA Margin †1 $ amounts in billions Mobility $19.9 $8.1 40.5% 2Q22 789 $20.3 813 $8.7 43.0% Postpaid Phones 2Q23 326 0.69% 0.75% 0.79% 2Q21 2Q22 2Q23 Net additions (in thousands) Churn Strong revenue and EBITDA+¹ growth from high-quality subscriber and ARPU gains Wireless service revenues grew $741M, up 4.9% EBITDA¹ of $8.7B, up 8.3% Postpaid phone ARPU of $55.63, up 1.5% Continued strong EBITDA and service margins from sustainable go-to-market strategy and cost transformation ● ● ● Consistent and disciplined execution as industry growth normalizes 326K postpaid phone net additions ● Continued low postpaid phone churn of 0.79%, as improved value proposition continues to resonate with customers © 2023 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. 8 t See notes slide 12 AT&T#92Q23 Consumer and Business Wireline Results Revenues EBITDA †1 EBITDA Margin †1 $ amounts in billions Consumer Wireline $3.2 $3.3 $0.9 O 29.3% 2Q22 $5.6 Business Wireline $1.8 $1.0 32.2% 2Q22 31.5% 2Q23 $5.3 $1.7 32.8% 2Q23 Revenue and EBITDA+¹ growth driven by Fiber adoption, with Fiber revenues up 28% Broadband revenues grew 7.0%, with Fiber subscriber growth and mix shift to Fiber Fiber ARPU of $66.70, up 8.2%, with intake ARPU about $70 AT&T Fiber net additions of 251K, even with significantly lower move activity Closed Gigapower transaction and announced initial 8 new areas ● ● Business Wireline results impacted by ongoing transition toward core connectivity Portfolio rationalization continuing to impact year-over-year comparisons ● ● ● 2Q23 EBITDA+¹ comparability impacted by ~$75M in favorable items this quarter Business Solutions 6 wireless service revenues grew 9.1%; FirstNet added ~350K connections © 2023 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. 9 t See notes slide 12 AT&T#102Q23 Capital Allocation Update $132 2Q22 Net debt ¹²-change since 2Q22 (TTM) $ amounts in billions $15.2 Free cash flowt5 (TTM) $9.3 Dividends and distributions $4 Non-recurring and discrete items* $1.5 FX impacts on debt balance $132 © 2023 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. 10 2Q23 * Non-recurring and discrete items include (1) payments related to prior dispositions, including a post-closing adjustment to Warner Bros. Discovery, and DIRECTV note payable in connection with the NFL Sunday Ticket contract, (2) capitalized interest and clearing costs associated with spectrum transactions, and (3) the net impact of redemptions of our preferred interest in our Mobility II subsidiary and the associated subsequent issuances of preferred subsidiary interests.. t See notes slide 12 Expect to reduce net debtt² by ~$4B by end of 2023, with net debt-to-adjusted EBITDA of 3.0x¹7 ● Expect free cash flowt5 of $16B or better for 2023, indicating about $11B in second half 2023 In 2H23, expect: ~$11B in free cash flowt5 ($5B) dividends and distributions ($2B) spectrum clearing costs ~$4B in net debt reduction On track to reach 2.5x range¹7 in first half of 2025 Going forward, expect majority of cash after dividends to go to debt reduction ● AT&T#1111 لا اله الا ان الله الله © 2023 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. Q&A#12Notes EBITDA, EBITDA margin, EBITDA service margin, Adjusted EBITDA margin and adjusted operating income margin are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Financial and Operational Schedules & Non-GAAP Reconciliations document on the company's Investor Relations website, investors.att.com. 1. 2. 3. Capital investment includes capital expenditures and cash paid for vendor financing ($1.6 billion in 2Q23). Capital investment for the three year period ended June 30, 2023 of about $65 billion is calculated as capital expenditures from continuing operations of about $50B ($8.6B for the six months ended June 30, 2023, $19.6B for 2022, $15.5B for 2021, $5.7B for the six months ended December 31, 2020), plus cash paid for vendor financing of approximately $15B ($3.8B for the six months ended June 30, 2023, $4.7B for 2022, $4.6B for 2021, $1.6B for the six months ended December 31, 2020). Net Debt of $132.0 billion at June 30, 2023, is calculated as Total Debt of $143.3 billion less Cash and Cash Equivalents of $9.5 billion and Time Deposits (i.e., deposits at financial institutions that are greater than 90 days) of $1.8 billion. Net Debt of $131.9 billion at June 30, 2022, is calculated as Total Debt of $136.0 billion less Cash and Cash Equivalents of $4.0 billion. Net Debt from continuing operations of $151.3 billion at June 30, 2020, is calculated as Total Debt of $166.0 billion less Cash and Cash Equivalents of $14.7 billion. 4. Adjusted EPS from continuing operations 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, benefit-related gains and losses, employee separation and other material gains and losses. 5. 7. 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. In 2Q23, free cash flow of $4.2 billion is cash from operating activities from continuing operations of $9.9 billion, plus cash distributions from DIRECTV classified as investing activities of $0.2 billion, minus capital expenditures of $4.3 billion and cash paid for vendor financing of $1.6 billion. For 2Q23 year-to-date, free cash flow of $5.2 billion is cash from operating activities from continuing operations of $16.6 billion, plus cash distributions from DIRECTV classified as investing activities of $1.0 billion, minus capital expenditures of $8.6 billion and cash paid for vendor financing of $3.8 billion. For the trailing twelve months ended 2Q23, free cash flow of $15.2 billion is cash from operating activities from continuing operations of $37.0 billion, plus cash distributions from DIRECTV classified as investing activities of $2.0 billion, minus capital expenditures of $18.8 billion and cash paid for vendor financing of $5.1 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities and cash distributions from DIRECTV, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort. 6. As a supplemental presentation to our Communications segment operating results, AT&T Business Solutions results are provided in the Financial and Operational Schedules & Non-GAAP Reconciliations document on the company's Investor Relations website, investors.att.com. AT&T Business Solutions includes both wireless and fixed operations and is calculated by combining our Mobility and Business Wireline operating units and then adjusting to remove non-business operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers. 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 by the sum of the most recent four quarters of Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and deposits at financial institutions that are greater than 90 days (e.g., certificates of deposit and time deposits), from the sum of debt maturing within one year and long-term debt. Adjusted EBITDA is calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairment, benefit-related gains and losses, employee separation and other material gains and losses. Net Debt and Adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected Net Debt to Adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort. © 2023 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. 12 AT&T#13AT&T