Key figures

September 2013

Present in 24 countries and an average of 120,000 professionals. Consolidated revenues of 57,061 million euros and more than 323,1 million customer at December 2013: more than 254.7 million mobile phones accesses; 39.3 million fixed telephony accesses; more than 19.1 million Internet and data accesses and 3.6 million pay TV accesses.

Accesses Telefónica Group

Unaudited figures (thousands)

January - December
2011 2012 2013

Notes:

- Telefónica España mobile accesses include since 2013 the accesses of Tuenti and in 2012 they have been restated with the same criteria.

(1) PSTN (including Public Use Telephony) x1; ISDN Basic access x1; ISDN Primary access; 2/6 Access x30. Company’s accesses for internal use and total fixed wireless included. Includes VoIP and Naked ADSL.

(2) In the second quarter of 2013, 209 thousand accesses were disconnected due to the disposal of the assets of the fixed business in UK.

(3) ADSL, satellite, optical fiber, cable modem and broadband circuits.

(4) In the second quarter of 2013, 511 thousand accesses were disconnected due to the disposal of the assets of the fixed business in UK.

(5) Retail circuits other than broadband.

(6) First quarter of 2013 includes the disconnection of 114 thousand inactive accesses in Czech Republic.

Final Clients Accesses 301,311.8 310,088.3 316,759.9
Fixed telephony accesses (1) (2) 40,119.2 40,002.6 39,338.5
Internet and data accesses 19,134.2 19,402.6 19,102.0
Narrowband 909.2 653.2 510.8
Broadband (3) (4) 18,066.3 18,596.2 18,447.8
Other (5) 158.7 153.1 143.4
Mobile accesses 238,748.6 247,346.9 254,717.2
Prepay 162,246.9 165,821.9 165,557.0
Contract (6) 76,501.7 81,525.0 89,160.3
Pay TV 3,309.9 3,336.2 3,602.2
Wholesale Accesses 5,296.0 5,731.3 6,358.5
Unbundled loops 2,928.7 3,308.8 3,833.4
Share ULL 205.0 183.5 130.6
Full ULL 2,723.7 3,125.3 3,702.9
Wholesale ADSL 849.3 845.4 866.9
Other 1,518.0 1,577.1 1,658.2
Total Accesses 306,607.8 315,819.6 323,118.4

Accesses Telefónica España

Unaudited figures (thousands)

January - December
2011 2012 2013

Note:

- Telefónica España mobile accesses include since 2013 the accesses of Tuenti and in 2012 they have been restated with the same criteria.

(1) PSTN (including Public Use Telephony) x1; ISDN Basic access x1; ISDN Primary access; 2/6 Access x30. Company’s accesses for internal use included. Includes VoIP and Naked ADSL.

(2) ADSL, satellite, optical fiber and broadband circuits.

(3) Leased lines.

(4) Wholesale Line Rental.

(5) Includes naked shared loops.

(6) Wholesale circuits.

Final Clients Accesses 43,023.8 38,821.7 36,663.6
Fixed telephony accesses (1) 12,305.4 11,723.0 11,089.8
Naked ADSL 34.4 25.0 22.8
Internet and data accesses 5,710.9 5,779.3 5,899.0
Narrowband 84.4 54.0 38.5
Broadband (2) 5,608.6 5,709.3 5,846.8
Other (3) 17.9 16.0 13.7
Mobile accesses 24,174.3 20,608.7 19,002.1
Prepay 7,359.4 5,180.5 4,262.7
Contract 16,814.9 15,428.2 14,739.3
Pay TV 833.2 710.7 672.7
Wholesale Accesses 4,031.9 4,396.0 4,990.1
WLR (4) 440.6 481.2 525.8
Unbundled loops 2,881.1 3,262.0 3,787.1
Shared ULL 205.0 183.5 130.6
Full ULL (5) 2,676.1 3,078.5 3,656.5
Wholesale ADSL 709.6 652.3 676.8
Other (6) 0.6 0,5 0,4
Total Accesses 47,055.7 43,217.8 41,653.6

Accesses Telefónica Latinoamérica

Unaudited figures (thousands)

January - December
2011 2012 2013

(1) PSTN (including Public Use Telephony) x1; ISDN Basic access x1; ISDN Primary access; 2/6 Access x30. Company’s accesses for internal use included. Total "fixed wireless" accesses included.

(2) Includes ADSL, optical fiber, cable modem and broadband circuits.

(3) Retail circuits other than broadband.

Final Clients Accesses 201,402.2 211,908.0 221,046.7
Fixed telephony accesses (1) (2) 23,960.7 24,153.3 24,526.3
Internet and data accesses 8,885.9 8,732.5 9,239.7
Narrowband 389.4 209.1 125.5
Broadband (2) 8,385.9 8,415.3 9,011.7
Other (3) 110.6 108.0 102.6
Mobile accesses 166,297.9 176,595.4 184,507.0
Prepay 131,087.2 137,141.5 138,076.0
Contract 35,210.7 39,453.9 46,431.0
Pay TV 2,257.7 2,426.8 2,773.6
Wholesale Accesses 50.9 47.6 41.5
Total Accesses T. Latam 201,453.0 211,955.1 221,088.2
Terra Accesses --- 604.7 412.5
Total Accesses in Latin America 201,453.0 212,559.8 221,500.7

Accesses Telefónica Europe

Unaudited figures (thousands)

January - December
2011 2012 2013

Note:

- Telefónica España mobile accesses include since 2013 the accesses of Tuenti and in 2012 they have been restated with the same criteria.

(1) PSTN (including Public Use Telephony) x1; ISDN Basic access x1; ISDN Primary access; 2/6 Access x30. Company’s accesses for internal use included. Includes VoIP and Naked ADSL.

(2) In the second quarter of 2013, 209 thousand accesses were disconnected due to the disposal of the assets of the fixed business in UK.

(3) In the second quarter of 2013, 511 thousand accesses were disconnected due to the disposal of the assets of the fixed business in UK.

(4) Retail circuits other than broadband.

(5) First quarter of 2013 includes the disconnection of 114 thousand inactive accesses in Czech Republic.

Final Clients Accesses 56,885.9 97,498.1 95,300.7
Fixed telephony accesses (1) (2) 3,853.1 15,849.3 14,812.2
Internet and data accesses 4,537.4 10,065.4 9,449.7
Narrowband 435.4 444.1 385.3
Broadband (3) 4,071.8 9,576.2 9,023.6
Other (4) 30.3 45.1 40.8
Mobile accesses (3) 48,276.4 70,674.1 70,210.2
Prepay 23,800.3 28,618.2 27,480.9
Contract (5) 24,476.1 42,055.8 42,729.2
Pay TV 219.0 909.3 828.6
Wholesale Accesses 1,213.2 5,684.3 6,317.0
Total Accesses 58,099.1 103,182.3 101,617.7

Financial data

Selected financial data

Unaudited figures (Euros in millions)

January - December
2011 2012 2013

Notes:

- Basic earnings per share are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent, adjusted for the net coupon corresponding to “Other equity instruments”, by the weighted average number of ordinary shares outstanding during the period.

- For the basic earnings per share calculation purposes, the weighted average number of ordinary shares outstanding during the period has been obtained applying IAS rule 33 "Earnings per Share". Thereby, the weighted average number of shares held as treasury stock during the period has not been taken into account as outstanding shares.

- 2012 and 2013 reported figures include the hyperinflationary adjustments in Venezuela in both years.

- 2012 reported figures include the results of Atento until November 30th.

Revenues 62,837 62,356 57,061
Operating income before D&A (OIBDA) 20,210 21,231 19,077
Operating income (OI) 10,064 10,798 9,450
Income before taxes 6,488 5,864 6,280
Net income 5,403 3,928 4,593
Basic earnings per share (euros) 1.20 0.87 1.01
Weighted average number of ordinary shares outstanding during the period (millions) 4,511 4,496 4,520