AT&T Results Presentation Deck

Notes 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

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