AT&T Investor Update

QUARTER EARNINGS

October 21, 2021

AT&T

Investor Update

© 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

2021

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.

The “quiet period” for FCC Spectrum Auction 110 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.

This presentation may contain certain non-GAAP financial measures.

Reconciliations between the non-GAAP financial measures and the GAAP

financial measures are available on slide 10 of this presentation and

on the company’s website at https://investors.att.com.

Business Priorities – Continued Consistent Execution in 3Q21

Grow Customer

Relationships

✓ Most postpaid phone net adds in

more than 10 years

✓ Fiber share gains with sequential

increase in net adds

✓ HBO and HBO Max global

subscribers

†1

near 70 million

Effective and Efficient

in Everything We Do

✓ Increased cost efficiencies

enabled reinvestment in growth

✓ On track to achieve half of $6B

cost savings by end of 2021

✓ Mobility EBITDA

†2

growth of 3.6%

✓ Shift to Fiber driving Consumer

Wireline EBITDA

†2

growth

Deliberate Capital

Allocation

✓ Announced or closed $55B+ in

asset monetization and generated

~$26B in free cash flow

†3

over past

12 months

✓ Closed DIRECTV transaction

✓ WarnerMedia deal expected to

close by mid-year 2022

✓ Right capital structure in place to

support future success

† See notes slide 10

QUARTER EARNINGS

3Q21 Financial Results

2021

3Q21 Solid Subscriber Gains in Areas of Market Focus

Wireless

3Q20

357

3Q21

35%

2Q21

Fiber subscribers

3Q21

928

645

1Q214Q203Q20

0.72%

Postpaid phone subscribers

Postpaid phone churn

66.4

63.5

millions

64.2

2Q21

HBO Max and HBO Subscribers

56.9

3Q20

67.5

69.4

1Q21

millions

60.6

2Q21

289

4Q203Q20

5.4

5.7

4.7

33%

Penetration

millions

Postpaid Phone Subscribers AT&T Fiber Subscribers

64.8

3Q21

0.69%

63.9

3Q20

3Q21

3Q214Q20

Net AddsNet Adds

37%

International HBO Max

and HBO subscribers

5.0

5.2

1Q21

Fiber HBO Max

thousands

† See notes slide 10

65.5

Domestic HBO Max and

HBO subscribers

38.0

47.0

45.2

41.5

44.2

†1

3Q21 Financial Summary

$ in billions, except EPS

Solid revenue growth on a comparable basis

3Q21 reported revenues of $39.9B included one month of

U.S. Video

Excluding U.S. Video

†4

, revenues up $1.7B, or 4.7%

Adjusted EPS of $0.87

Up 14.5% year over year

Strong cash flows and liquidity position

Cash from operations of $9.9B

Capex of $4.7B; gross capital investment

†5

of $5.7B

$5.2B free cash flow

†3

; YTD dividend payout ratio

†3

of ~63%

~$10B of asset monetizations closed, including

DIRECTV/TPG transaction

3Q20 3Q21

Reported EPS

$0.39 $0.82

Adjustments:

Amortization of intangibles

$0.22 $0.11

DIRECTV intangible amortization (proportionate share)

- $0.04

Gain on sale of assets

- ($0.08)

Actuarial loss/(gain) on benefit plans

$0.01 ($0.04)

Debt redemption and other adjustments

$0.14 $0.02

Adjusted EPS

$0.76 $0.87

$0.76

19.4%

21.1%

Adjusted EPS

Adj. OI Margin

†2

3Q213Q20

Revenues

$42.3

3Q213Q20

CAPEX

$12.1

$9.9

$3.9

$4.7

$8.3

$5.2

Free Cash Flow

†3

Cash from Ops

$0.87

3Q213Q20

$39.9

† See notes slide 10

$36.4

$38.1

Revenues Ex U.S. Video

†4

U.S. Video impact

Revenues EBITDA EBITDA Margin

3Q21 Communications Segment

$ in billions

$6.3

$5.9

39.9%

38.5%

$2.5

$2.3

$17.9

$19.1

43.1%

41.7%

$7.7

$8.0

3Q20 3Q21

Mobility

Business Wireline

Strong revenue, EBITDA and subscriber gains

Revenues up 7.0%; service revenues up 4.6%

Strong EBITDA and service margins

928,000 postpaid phone net adds; 249,000 prepaid phone net adds

Margins remain strong with a refined portfolio

Revenue comps impacted by pandemic demand in 3Q20 and proactive portfolio rationalization

Emphasizing core network and transport connectivity

$3.0

30.4%

30.5%

$3.1

3Q20 3Q21

$0.9

$1.0

Consumer Wireline

Broadband drives revenue and EBITDA growth

Solid AT&T Fiber gains with sequential net add growth

EBITDA and revenue growth as Fiber strength offsets legacy declines

3Q20 3Q21

†2 †2

† See notes slide 10

3Q21 WarnerMedia Segment

$ in billions

Revenues

3Q20

3Q21

$7.4

$8.4

25.9%

25.7%

$1.9

$2.2

WarnerMedia

Strong subscription growth offset sports timing impacts on advertising

WarnerMedia revenues up ~14% driven by strong DTC subscription growth and content licensing

3Q21 includes ~$200M in DIRECTV advertising revenue sharing costs

DTC subscription revenue growth of ~25%

Strong HBO Max subscriber growth in Latin America; Spain and the Nordics launch in October

International and AVOD subscriber growth more than offset impact from Amazon wholesale losses

3Q20

56.9

69.4

3Q21

Global HBO Max and

HBO Subscribers

$1.6

$2.0

3Q20

3Q21

International

EBITDA Margin

† See notes slide 10

millions

†1

Domestic

45.2

38.0

Direct-to-Consumer

Subscription Revenues

EBITDA

†2 †2

4Q21 content slate is strong

QUARTER EARNINGS

Q&A

2021

QUARTER EARNINGS

Notes

1. Global HBO Max and HBO subscribers consist of domestic and international HBO Max and HBO subscribers, and exclude free trials, basic and Cinemax subscribers. Domestic HBO Max

and HBO subscribers consist of U.S. 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. International HBO Max and HBO subscribers consists of non-domestic accounts with access to HBO Max (including wholesale subscribers that may not have signed

in), and HBO accounts and exclude free trial, basic and Cinemax subscribers.

2. EBITDA, EBITDA Margin and adjusted operating income are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and

useful information. Reconciliation 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.

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 for the past 12

months is cash from operating activities of $40.8 billion, plus cash distributions from DIRECTV classified as investing activities ($0), minus capital expenditures $15.1 billion. Cash from

operating activities were $30.7 billion for 3Q21 YTD and $10.1 billion for 4Q20). Capital expenditures were $12.7 billion for 3Q21 YTD and $2.4 billion for 4Q20.

Free cash flow ($5.2 billion in 3Q21; $18.0 billion YTD) is cash from operating activities ($9.9 billion in 3Q21; $30.7 billion YTD), plus cash distributions from DIRECTV classified as investing

activities ($0 in 3Q21 and YTD), minus capital expenditures ($4.7 billion in 3Q21; $12.7 billion YTD). Free cash flow total dividend payout ratio is total dividends paid divided by free cash

flow. On a YTD basis, total dividends paid were $11.3 billion.

4. “Revenues excluding U.S. Video” for 3Q21 is calculated as Operating Revenues of $39.9 billion minus Video operating revenues of $2.1 billion, plus WarnerMedia sales for content and

advertising of $0.3 billion that are external after close of the transaction. Further information is included in our Forms 8-K dated September 9 and October 21, 2021.

5. Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes FirstNet reimbursements. In 3Q21, gross capital investment included $1.0

billion in vendor financing payments and $0 in FirstNet reimbursements.