AT&T Results Presentation Deck

Notes 1. The company expects adjustments to 2021 reported diluted EPS to include merger-related amortization in the range of $4.3 billion and other adjustments, 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. AT&T's 2021 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. 2. Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes FirstNet reimbursements. In 1Q21, gross capital investment included $1.7 billion in vendor financing payments. In 2021, vendor financing payments are expected to be in the $4 billion range and FirstNet reimbursements are expected to be about $1 billion. 3. 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 cash from operating activities minus capital expenditures. Free cash flow total dividend payout ratio is total dividends paid divided by free cash flow. In 1Q21, dividends paid totaled $3.741 billion. 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. 4. Domestic HBO Max and HBO subscribers consist of accounts with access to HBO Max (including wholesale subscribers that may not have signed in) and HBO accounts, and exclude free trials and Cinemax subscribers. Domestic ARPU is defined as domestic HBO Max and HBO subscriber revenues during the period divided by domestic HBO Max and HBO subscribers during the period, excluding HBO commercial revenues and subscribers. Global HBO Max and HBO subscribers consist of domestic HBO Max subscribers and domestic and international HBO subscribers and exclude free trials, and basic and Cinemax subscribers. 5. 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. 11 Net Debt to Adjusted EBITDA Adjusted Annualized EBITDA Total Debt Less: Cash and Cash Equivalents Net Debt Net Debt to Adjusted EBITDA Ratio $ 4018¹ 81,2 60,615 $ 176,505 5,204 171,301 2.826 4Q19² April 22, 2021/ © 2021 AT&T Intellectual Property - AT&T Proprietary 59,287 $ 163,147 12,130 151,017 2.547 4Q20² 54,546 $ 157,245 9,740 147,505 2.704 1Q21² 53,878 180,199 11,342 168,857 3.134 ¹4Q18 Adjusted Annualized EBITDA is calculated using Pro Forma Adjusted EBITDA to reflect the June 14, 2018 acquisition of Time Warner Inc. as reported in AT&T's Form 8-K filed January 30, 2019 and July 24, 2018. 2As reported in AT&T's Form 8-K filed January 30, 2019, January 29, 2020, January 27, 2021, and April 22, 2021, respectively. AT&T

View entire presentation