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AT&T Results Presentation Deck

2021 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.
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