Core Insights - The company held its annual general meeting (AGM) where all board proposals were approved, including a cash dividend of €0.15 per share and the allocation of €1,060 million to voluntary reserves [7][17] - The company reported meeting its 2025 financial commitments with adjusted EBIT growth of approximately 2%, free cash flow from continuing operations of €2,069 million, and a 7.1% increase in B2B revenue [5][15] - The chairman outlined the "Transform and Grow" strategy aimed at simplifying operations, focusing on four core markets (Spain, UK, Germany, Brazil), and pursuing European consolidation to become a leading "tech-telco" by 2030 and a top global telco by 2035 [6][12][13] Attendance and Voting - The AGM had a quorum of 65.71% of the company's share capital, with 27,661 shareholders present or represented, holding 3,726,013,000 shares [2][4] - Provisional attendance figures indicated 27,390 shareholders attending, representing 65.62% of the share capital [3] Financial Performance - The company achieved a total access of 326 million, up 2% year over year, with B2B revenue growth contributing significantly to overall performance [15] - The chairman highlighted Vivo's net profit growth of 11.2% in 2025 and the acquisition of 100% of FiBrasil's fiber as part of strategic growth initiatives [15][13] Strategic Initiatives - The company is focusing on enhancing network capabilities through acquisitions like Netomnia and aims to lead consolidation efforts in the fragmented European telecom market [6][18] - The chairman emphasized the importance of scale for investment and technology development, indicating a strategic shift towards consolidation within individual markets before expanding to a European level [18] Governance and Compliance - The company complies with "practically all" recommendations of Spain's good governance code, with some areas of partial compliance noted [1] - Key governance items included a 10% cap on the maximum number of votes a single shareholder may cast to protect minority shareholders and the existence of a combined Appointments, Remunerations, and Good Governance Committee [9]

Financial Data and Key Metrics Changes - Revenue for 2025 reached EUR 35.1 billion, growing 1.5% year-on-year in constant terms [25] - Adjusted EBITDA came in at EUR 11.9 billion, up 2% [25] - Adjusted operating cash flow after leases grew 5.9% to just over EUR 5 billion [25] - Free cash flow for 2025 was EUR 2.8 billion, exceeding the guidance of approximately EUR 2.7 billion [25] - Net financial debt decreased 1.2% year-on-year to EUR 26.8 billion [26] Business Line Data and Key Metrics Changes - B2B revenue grew 7.1% in constant terms for the full year and 7.3% in Q4 [27] - B2C revenue increased by 2.1% in Q4, up 1.8% for the full year [27] - In Spain, convergent ARPU remains around EUR 90, with churn at 0.7% in Q4, the lowest since the launch of the convergent proposition [13] - In Brazil, Vivo Total accounted for 53% of fiber connections, with revenue from the ecosystem rising more than 20% [17] Market Data and Key Metrics Changes - In Spain, the company achieved the strongest growth in over 7 years, driven by premium positioning and improved commercial performance [4] - In Brazil, the customer base grew to record levels, with mobile service revenue accelerating in Q4 [17] - In Germany, the O2 brand saw positive consumer perception, with contract ARPU remaining robust and churn at a low level of 1.1% [19] Company Strategy and Development Direction - The strategic plan "Transform and Grow" focuses on providing the best access to digital technologies and enhancing customer services [3] - The company aims to simplify business units and shift operational responsibility to markets, emphasizing growth and efficiency [3] - Key strategic pillars include delivering a best-in-class customer experience, expanding B2C offerings, and scaling B2B [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue and adjusted EBITDA growth of 1.5%-2.5% for 2026, with free cash flow expected to reach EUR 3 billion [11] - The company is committed to a deleveraging path towards a target of 2.5x net debt to adjusted EBITDA by 2028 [11] - Management highlighted the importance of operational excellence and customer experience in driving future growth [14] Other Important Information - The company reached a formal agreement with labor unions in Spain to improve productivity, expected to deliver EUR 0.6 billion in savings by 2028 [8] - The company has exited six out of eight markets in Hispam, significantly reducing exposure in the region [5] - The acquisition of Netomnia is expected to strengthen the network and accelerate fiber rollout in the UK [23] Q&A Session Summary Question: On Spanish growth and EBITDA acceleration - Management indicated that savings measures in Spain are part of the guidance for 2026, with expectations for acceleration in revenues and EBITDA [41] Question: On free cash flow generation and commitments - The company upgraded its 2026 free cash flow guidance to approximately EUR 3 billion, with commitments expected to peak at around EUR 1.2 billion [44] Question: On German mobile ARPU and consolidation barriers - Management acknowledged that promotional activity in Germany impacts ARPU but expects a more rational market moving forward [69] Question: On competition in Spain - Management noted that Telefónica maintains a strong position in the high-end segment and is effectively competing in the low-end segment despite increased competition [88]