2019 At&T Earnings

2019 AT&T EARNINGS

Investor Briefing

No. 306 | OCTOBER 28, 2019 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS

Contents

3 Communications Mobility Entertainment Group Business Wireline

7 WarnerMedia Turner Home Box Office Warner Bros.

10 Latin America Mexico Vrio

11 Xandr

13 Financial and Operational Information

28 Discussion and Reconciliation of Non-GAAP Measures INVESTOR BRIEFING Q3 2019 AT&T EARNINGS Communications

FINANCIAL HIGHLIGHTS (Puerto Rico and U.S. Virgin Islands wireless and business wireline operations, which are pending divestiture, are reported within Corporate & Other instead of the Mobility and Business Wireline business units. Prior quarters have been recast.)

ǋǋ $35.4 billion, down 1.7% year over year due to declines in Entertainment Group and Business Revenues Wireline that were partially offset by gains in wireless service revenues

ǋǋ $27.4 billion, down 1.8% year over year reflecting lower Entertainment Group and Mobility Operating Expenses expenses partially offset by increases in Business Wireline

ǋǋ $8.0 billion, down 1.4% year over year; operating income margin of 22.7% compared to Operating Income 22.6% in the year-ago quarter

MOBILITY

ǋǋ $17.7 billion, down slightly year over year due to declines in equipment revenues which were mostly offset by an increase in service revenues ■■ Service revenues: $13.9 billion, up 0.7% year over year due to postpaid phone ARPU Revenues growth and prepaid subscriber gains ■■ Equipment revenues: $3.8 billion, down 3.5% year over year with continued low postpaid phone upgrade rates

ǋǋ $12.0 billion, down 1.7% year over year due to lower postpaid smartphone volumes, lower Operating Expenses depreciation and cost efficiencies, partially offset by higher bad debt and commission amortization

ǋǋ $5.7 billion, up 3.0% year over year; operating income margin of 32.4%, compared to Operating Income 31.4% in the year-ago quarter

ǋǋ $7.8 billion, up 1.6% year over year; EBITDA margin; 43.8% versus 43.0% in the year-ago quarter (EBITDA margin is operating income before depreciation and amortization, divided by total revenues) EBITDA ǋǋ Wireless EBITDA service margin: 55.7% compared to 55.2% in the year-ago quarter (EBITDA service margin is operating income before depreciation and amortization, divided by total service revenues)

Communications Revenues & EBITDA Margin Mobility Revenues & EBITDA Service Margin IN BILLIONS IN BILLIONS $37.2 $18.6 $36.0 $35.3 $35.4 $17.7 $17.4 $17.3 $17.7 $35.2

35.3% 35.7% 37.6% 35.7% 32.7% 55.2% 54.5% 53.7% 56.2% 55.7%

$12.7 $12.2 $12.6 $13.3 $12.6 $7.6 $7.5 $7.3 $7.8 $7.8

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

Revenues EBITDA EBITDA Margin Revenues EBITDA EBITDA Service Margin

3 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS

ARPU Phone-Only Postpaid ARPU ǋǋ Postpaid phone-only ARPU increased 0.6% versus the year-ago quarter SUBSCRIBER METRICS ǋǋ Total net adds of 3.7 million to reach 162.3 million in service $55.58 $55.28 $55.27 $55.50 $55.89

■■ 255,000 total phone net adds ■■ 317,000 total smartphone net adds ■■ 217,000 postpaid net losses with losses in tablets 3Q18 4Q18 1Q19 2Q19 3Q19 offsetting gains in wearables and phones Phone-Only Postpaid ARPU 101,000 postpaid phone net adds 173,000 postpaid smartphone net adds 386,000 postpaid tablet and other branded computing device net losses Postpaid & Prepaid Phone Net Adds IN THOUSANDS ǋǋ 227,000 prepaid net adds 67 ■■ 154,000 prepaid phone net adds ■■ 144,000 prepaid smartphone net adds 74 ǋǋ 3.9 million connected device net adds 480 101 ǋǋ 283 231,000 reseller net losses 79 131 154 ǋǋ Nearly 900,000 FirstNet connections across more 90 13 than 9,800 agencies now in service 3Q18 4Q18 1Q19 2Q19 3Q19 CHURN Prepaid Postpaid ǋǋ Postpaid churn: 1.19%, versus 1.16% in the year-ago quarter due to tablet and phone churn

ǋǋ Postpaid phone churn: 0.95%, compared to Phone Subscribers & Postpaid Upgrade Rate 0.93% in the year-ago quarter IN MILLIONS SMARTPHONES 78.6 78.8 78.9 79.2 79.5 15.8 15.9 16.1 16.4 16.7 ǋǋ 6.6 million postpaid and prepaid smartphone gross adds and upgrades in the quarter, including 3.0 2.8 2.8 2.6 2.5 1.8 million from prepaid 59.8 60.1 60.0 60.2 60.3

ǋǋ Postpaid upgrade rate of 4.0%, down from 4.3% 5.0% 3.5% 3.4% 4.0% 4.3% in the year-ago quarter 3Q18 4Q18 1Q19 2Q19 3Q19

Postpaid Smartphones Postpaid Upgrade Rate Prepaid Phones Postpaid Feature Phones & Others

4 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS COMMUNICATIONS

ENTERTAINMENT GROUP

ǋǋ $11.2 billion, down 3.4% year over year due to declines in premium TV subscribers and legacy services ■■ Video: $7.9 billion, down 4.2% year over year due to declines in premium TV subscribers, Revenues partially offset by the growth of over-the-top revenues ■■ IP Broadband: $2.1 billion, up 3.5% year over year due to the continued shift of subscribers to higher-speed services, including AT&T Fiber, which was partially offset by declines in subscribers with slower speeds

ǋǋ $10.1 billion, down 3.6% year over year due to lower content costs resulting from fewer subscribers and ongoing cost initiatives, partially offset by higher deferral amortization, Operating Expenses including a second-quarter 2019 update to expected subscriber lives, and increased costs associated with the NFL SUNDAY TICKET

ǋǋ $1.1 billion, down 1.7% year over year; operating income margin: 9.7% compared to 9.5% Operating Income in the year-ago quarter

ǋǋ $2.4 billion, down 1.4% year over year due mostly to higher deferral amortization and EBITDA increased costs for NFL SUNDAY TICKET; 21.4% EBITDA margin, up from 21.0% in the year-ago quarter

SUBSCRIBER METRICS Entertainment Group Revenues ǋǋ Premium TV subscribers: (1,163,000) net loss due & EBITDA Margin to customers rolling off promotional discounts, IN BILLIONS

programmer disputes and competition as well as $11.6 $12.0 lower gross adds due to the continued focus on $11.3 $11.4 $11.2 adding higher value customers 24.7% 25.1% 21.0% 21.4% ǋǋ AT&T TV NOW subscribers: (195,000) net loss due 18.0% to higher prices and less promotional activity

ǋǋ Total broadband subscribers: (119,000) net loss impacted by video attach rates $2.4 $2.2 $2.8 $2.9 $2.4

■■ 318,000 fiber net adds 3Q18 4Q18 1Q19 2Q19 3Q19 ǋǋ Nearly 85% of all broadband subscribers Revenues EBITDA EBITDA Margin on AT&T’s fiber network have speeds of 100 megabits or more. Total broadband customers with speeds of 100 megabits or faster have more than doubled in the past year. IP Broadband Subscribers IN MILLIONS ǋǋ AT&T now markets its 100% fiber network to nearly 14 million customer locations in parts of 13.7 13.7 13.8 13.8 13.7 85 major metro areas. Broadband penetration in the fiber footprint continues to be significantly higher than in AT&T’s non-fiber footprint with penetration rates increasing the longer we have fiber in a market.

3.7 2.5 2.8 3.1 3.4

3Q18 4Q18 1Q19 2Q19 3Q19 Total IP Broadband Subscribers Fiber Subscribers

5 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS COMMUNICATIONS

BUSINESS WIRELINE

ǋǋ $6.5 billion, down 2.7% year over year with declines in legacy products partially offset by growth in strategic and managed services; 3Q18 revenues also included about $80 million Revenues from the sale of intellectual property assets. Total business revenues including wireless grew 0.9%

ǋǋ Strategic and managed services: $3.9 billion, up 6.1% year over year. These are the wireline Strategic and capabilities that lead AT&T’s most advanced business solutions Managed Services ■■ Annualized revenue stream of $15.6 billion; 60% of total business wireline revenues ■■ Growth helped offset a decline of about $350 million in legacy services

Operating Expenses ǋǋ $5.3 billion, up 1.6% year over year due to higher depreciation expense

ǋǋ $1.2 billion, down 17.9%; operating income margin: 18.6%, down from 22.1% in the Operating Income year-ago quarter

ǋǋ 38.2%, down from 39.8% in the year-ago quarter with strategic and managed services EBITDA Margin revenue growth and cost efficiencies partially offsetting declines in legacy services and intellectual property revenues included in the year-ago quarter

ǋǋ More than 500,000 U.S. business buildings are now lit with fiber from AT&T, enabling high-speed fiber connections to more than 2.5 million U.S. business customer locations. Other Metrics Nationwide, more than 8 million business customer locations are on or within 1,000 feet of our fiber.*

Business Wireline Revenues & EBITDA Margin Strategic & Managed Services Revenues IN BILLIONS IN BILLIONS

$6.7 $6.7 $6.5 $6.6 $6.5

39.8% 38.0% 37.8% 39.8% 38.2% $3.7 $3.8 $3.8 $3.8 $3.9

$2.7 $2.6 $2.4 $2.6 $2.5

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Revenues EBITDA EBITDA Margin

*The more than 2.5 million U.S. business customer locations covered by AT&T high-speed fiber is included within the 8M+ U.S. business customer locations onor within 1,000 feet of our fiber.

6 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS WarnerMedia

FINANCIAL HIGHLIGHTS (Financial results of Otter Media are included in WarnerMedia consolidated results following AT&T’s Aug. 7, 2018 acquisition of the remaining interest in Otter Media and the transfer of the ownership of Otter Media to WarnerMedia. Prior to this date, Otter Media was included as an equity-method investment of AT&T.)

ǋǋ $7.8 billion, down 4.4% year over year primarily driven by lower Warner Bros. revenues Revenues partially offset by gains at Home Box Office and Turner

ǋǋ $5.3 billion, down 5.7% year over year primarily due to lower expenses at Warner Bros. and Operating Expenses Turner, partially offset by higher expenses at Home Box Office ǋǋ Includes $2.9 billion of programming and production costs, down 8.6% year over year

ǋǋ $2.5 billion, down 1.5% year over year; operating income margin of 32.2% compared with Operating Income 31.3% in year-ago quarter; merger synergies remain on track; operating income growth at all 3 business units was offset by higher intrasegment eliminations

WarnerMedia Revenues Turner Revenues & Operating Income Margin & Operating Income Margin IN BILLIONS IN BILLIONS

$9.2 $8.4 $8.4 $7.8 $8.2 $3.2 $3.4 $3.4 $3.0 $3.0

48.3% 49.2% 32.2% 40.2% 31.3% 28.4% 26.8% 23.6% 36.2% 33.8%

$1.2 $1.2 $1.5 $2.6 $2.6 $2.2 $2.0 $2.5 $1.4 $1.3

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

Revenues Operating Income Operating Income Margin Revenues Operating Income Operating Income Margin

Home Box Office Revenues Warner Bros. Revenues & Operating Income Margin & Operating Income Margin IN BILLIONS IN BILLIONS

$1.8 $1.7 $1.7 $4.5 $1.6 $1.5 $3.7 $3.5 $3.4 $3.3

38.2% 39.3% 18.1% 37.2% 37.5% 33.4% 15.5% 15.5% 17.6% 13.0%

$0.6 $0.6 $0.6 $0.6 $0.7 $0.8 $0.6 $0.5 $0.4 $0.6

3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19

Revenues Operating Income Operating Income Margin Revenues Operating Income Operating Income Margin

7 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS WARNERMEDIA

TURNER

ǋǋ $3.0 billion, up 0.6% year over year due to a 3.9% increase in subscription revenues, partially offset by a 3.3% decline in advertising revenues and a 11.6% decline in content licensing and other revenues ǋǋ Subscription: Benefited from higher domestic affiliate rates and growth at Turner’s Revenues international networks; revenues were impacted by unfavorable foreign exchange rates ǋǋ Advertising: Decreased due to lower audience delivery at Turner’s domestic entertainment networks that was partly offset by higher pricing; international advertising revenues declined and were impacted by unfavorable foreign exchange rates

ǋǋ $1.5 billion, down 1.2% year over year, primarily due to lower programming, marketing and Operating Expenses direct operating costs

ǋǋ $1.5 billion, up 2.6% year over year; operating income margin of 49.2% compared to 48.3% Operating Income in the year-ago quarter

HOME BOX OFFICE

ǋǋ $1.8 billion, up 10.6% year over year reflecting an increase in content and other revenues and a 1.1% increase in subscription revenues Revenues ǋǋ Content and other: Increased due to higher international licensing revenues ǋǋ Subscription: Increased year over year due to digital and international growth, partially offset by lower domestic linear subscribers

ǋǋ $1.1 billion, up 8.8% year over year due to higher programming, distribution and Operating Expenses marketing expenses

ǋǋ $714 million, up 13.7% year over year; operating income margin of 39.3% compared to 38.2% Operating Income in the year-ago quarter

WARNER BROS.

ǋǋ $3.3 billion, down 10.4% year over year due to declines in theatrical and television revenues, which were partially offset by gains in games and other revenues Revenues ǋǋ Theatrical product: Decreased primarily due to mix of releases, as the prior-year quarter included The Meg, The Nun and Crazy Rich Asians ǋǋ Television product: Decreased primarily due to lower licensing revenues

ǋǋ $2.7 billion, down 12.7% year over year primarily due to lower film and television production Operating Expenses costs associated with lower revenues

ǋǋ $588 million, up 2.1% year over year; operating income margin of 17.6% compared to Operating Income 15.5% in the year-ago quarter

8 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS WARNERMEDIA

SELECT RECENT & UPCOMING RELEASES Represents a limited, select list of releases only. Premiere/release dates shown may be preliminary and are subject to change. TURNER WARNER BROS. Series Note: Warner Bros. is producing more than 70 series for the Misery Index (S1, TBS): 10/22/19 2019-20 television season. The 2019-20 broadcast television Impractical Jokers: Inside Jokes (S6, truTV): 10/24/19(1) season runs September 2019 through August 2020. The Cable/ Off The Air (S9, Adult Swim): 10/28/19 Pay/OTT television season runs June 2019 through May 2020, Laff Mobb’s Laff Tracks (S2, truTV): 11/8/19 based on air dates. Joe Pera Talks With You (S2, Adult Swim): 12/6/19 Select TV Production: Broadcast (Fall Premieres) Animated Series Prodigal Son (S1, Fox): 9/23/19(1) Primal (S1, Adult Swim): 10/7/19 All Rise (S1, CBS): 9/23/19(1) Apple & Onion (S1, Cartoon Network): 11/9/19(1) Bob Hearts Abishola (S1, CBS): 9/23/19 Rick and Morty (S4, Adult Swim): 11/10/19 Young Sheldon (S3, CBS): 9/26/19 Momma Named Me Sheriff (S1, Adult Swim): 11/17/19 God Friended Me (S2, CBS): 9/29/19(1) Steven Universe Future (S1, Cartoon Network): Dec. 2019 Batwoman (S1, The CW): 10/6/19 All American (S2, The CW): 10/7/19(1) Docuseries Black Lightning (S3, The CW): 10/7/19 Dead Wives Club (S1, HLN): 10/20/19 The Flash (S6, The CW): 10/8/19 Something’s Killing Me (S3, HLN): 10/20/19 Real Life Nightmare (S1, HLN): 11/2/19 Select TV Production: Cable/Pay/OTT Veronica Mars (S1, Hulu): 7/19/19 Specials Pennyworth (S1, Epix): 7/28/19 CONAN Without Borders: Ghana (TBS, Special): 11/7/19 David Makes Man (S1, OWN): 8/14/19 Mr. Pickles (Adult Swim, Special): 11/17/19 The Kominsky Method (S2, Netflix): 10/25/19 Dolly Parton's Heartstrings (S1, Netflix): 11/22/19 (1) Continuation of season. Fuller House (S5, Netflix): 12/19/19 Theatrical: Box Office (Domestic Release Dates Shown) HOME BOX OFFICE 1Q 2019 HBO Series They Shall Not Grow Old: 1/21/19 Axios (S2): 10/20/19(1) The LEGO Movie 2: The Second Part: 2/8/19 Watchmen (S1): 10/20/19 Isn’t It Romantic: 2/13/19(2) Catherine The Great (Limited Series): 10/21/19 2Q 2019 Silicon Valley (S6): 10/27/19 Shazam!: 4/5/19 Mrs. Fletcher (Limited Series): 10/27/19 The Curse of La Llorona: 4/19/19 His Dark Materials (S1): 11/4/19 Pokémon Detective Pikachu: 5/10/19 Sesame Street (S50): 11/16/19 The Sun Is Also a Star: 5/17/19 HBO Comedy/Specials Godzilla: King of the Monsters: 5/31/19 Entre Nos Presents: Erik Rivera: Super White (HBO Latino): 11/1/19 Shaft: 6/14/19(2) Daniel Sloss: X: 11/2/19 Annabelle Comes Home: 6/26/19 Sesame Street’s 50th Anniversary Celebration: 11/9/19 3Q 2019 Lil Rel Howery: Live in Crenshaw: 11/23/19 The Kitchen: 8/9/19 Dan Soder: Son of A Gary: 12/7/19 Blinded by the Light: 8/16/19 HBO Film/Documentaries IT Chapter Two: 9/6/19 Torn Apart: Separated at the Border: 10/10/19 The Goldfinch: 9/13/19 Saudi Women’s Driving School: 10/24/19 4Q 2019 The Bronx, USA: 10/30/19 Joker: 10/4/19 The Apollo: 11/6/19 Western Stars: 10/25/19 Very Ralph: 11/12/19 Motherless Brooklyn: 11/1/19 Ernie & Joe: Crisis Cops: 11/19/19 Doctor Sleep: 11/8/19 Letter to the Editor: 12/4/19 The Good Liar: 11/15/19 Moonlight Sonata: 12/11/19 Richard Jewell: 12/13/19 Finding the Way Home: 12/18/19 Just Mercy: 12/25/19(3) HBO Sports Games Diego Maradona: 10/1/19 The LEGO Movie 2 Videogame (console): 2/26/19 24/7: College Football: 10/2/19 Mortal Kombat (mobile, expansion): 4/1/19 Any One of Us: 10/29/19 Mortal Kombat 11 (console): 4/23/19 Lindsey Vonn: The Final Season: 11/26/19 Harry Potter: Wizards Unite (mobile): 6/21/19 24/7: Kelly Slater: 12/3/19 Belichick & Saban: The Art of Coaching: 12/10/19 (1)Co-produced. (2)Domestic-only release by Warner Bros. Well Groomed: 12/17/19 (3)Limited release; opens wide in January 2020. (1)Continuation of season. 9 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS Latin America

ǋǋ $1.7 billion, down 5.6% Latin America Revenues year over year largely IN BILLIONS Revenues due to foreign exchange pressures from revenues $1.8 $1.8 $1.7 $1.8 $1.7 in multiple currencies $0.7 $0.8 $0.7 $0.7 $0.7

ǋǋ $1.9 billion, down 6.6% Operating Expenses year over year $1.1 $1.1 $1.1 $1.0 $1.0

ǋǋ ($179) million, compared 3Q18 4Q18 1Q19 2Q19 3Q19 to a ($210) million loss in the year-ago Vrio Mexico Wireless Operating Loss quarter; operating income margin (10.3)%, compared to (11.5)% in the prior year

MEXICO

ǋǋ $717 million, down 1.9% year over year, due to lower equipment revenues which were Revenues partially offset by service revenue growth

Service Revenues ǋǋ $455 million, up 3.4% year over year driven by prepaid subscriber growth

Operating Loss ǋǋ ($179) million, compared to a loss of ($267) million in the year-ago quarter

ǋǋ 598,000 total net adds; 668,000 prepaid net adds, 137,000 postpaid net losses Subscriber Metrics and 67,000 reseller net adds to reach 18.6 million total wireless subscribers

VRIO

Revenues ǋǋ $1.0 billion, down 8.1% year over year primarily due to foreign exchange pressures

ǋǋ $0 compared to operating income of $57 million in the year-ago quarter with continued Operating Income positive cash flow for the quarter

Subscriber Metrics ǋǋ 167,000 net losses; total subscribers at the end of the quarter were 13.3 million

10 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS Xandr

FINANCIAL HIGHLIGHTS Xandr revenues include AdWorks revenues (which are also reported in the Entertainment Group and are reconciled at the corporate level) and AppNexus revenues. AppNexus was acquired on August 15, 2018.

Revenues ǋǋ $504 million, up 13.3% year over year; without AppNexus, revenues were up 5.0% year over year

ǋǋ $177 million, up from $112 million year over year due to the acquisition of AppNexus and Operating Expenses higher costs associated with revenue growth

ǋǋ $327 million, down 1.8% year over year due to increased costs associated with scaling the Operating Income business; operating income margin of 64.9% compared with 74.8% in the year-ago quarter

Xandr Revenues & EBITDA Margin IN MILLIONS

$566 $485 $504 $445 $426

75.5% 68.2% 69.7% 67.9% 62.4%

$336 $386 $266 $338 $342

3Q18 4Q18 1Q19 2Q19 3Q19

Revenues EBITDA EBITDA Margin

11 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS

FOURTH-QUARTER 2019 EARNINGS AT&T INVESTOR BRIEFING DATE: JANUARY 29, 2020 The AT&T Investor Briefing is published by the Investor AT&T will release fourth-quarter 2019 earnings Relations staff of AT&T Inc. Requests for further on January 29, 2020 before the market opens. information may be directed to one of the Investor Relations managers by phone at 210-351-3327. The company’s Investor Briefing and related earnings materials will be available on the AT&T website at Correspondence should be sent to: https://investors.att.com by 7:30 a.m. Eastern time. Investor Relations AT&T Inc. AT&T will also host a conference call to discuss the 208 S. Akard Street results at 8:30 a.m. Eastern time the same day. Dial-in Dallas, TX 75202 and replay information will be announced on First Call approximately 8 weeks before the call, which will also be Email address: broadcast live and will be available for replay over the [email protected] internet at https://investors.att.com. Senior Vice President-Investor Relations Mike Viola CAUTIONARY LANGUAGE CONCERNING Investor Relations Staff FORWARD-LOOKING STATEMENTS Jamie Anderson Information set forth in this Investor Briefing contains Tim Bever financial estimates and other forward-looking Michael Black statements that are subject to risks and uncertainties, Kent Evans and actual results may differ materially. A discussion Matt Gallaher of factors that may affect future results is contained Todd Gericke in AT&T’s filings with the Securities and Exchange Nate Melihercik Commission. AT&T disclaims any obligation to update Martin Sheehan or revise statements contained in this Investor Briefing Chris Womack based on new information or otherwise.

This Investor Briefing may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are included in the exhibits to the Investor Briefing and are available on the company’s website at https://investors.att.com.

The “quiet period” for FCC Spectrum Auction 103 (37-39Ghz and 47Ghz) is now 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.

12 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS Financial and Operational Information AT&T Inc. Financial Data AT&T INC. FINANCIAL DATA

Consolidated Statements of Income Dollars in millions except per share amounts Unaudited Third Quarter Percent Nine-Month Period Percent 2019 2018 Change 2019 2018 Change Operating Revenues Service $ 40,317 $ 41,297 (2.4) % $ 122,024 $ 109,849 11.1 % Equipment 4,271 4,442 (3.8) % 12,348 12,914 (4.4) % Total Operating Revenues 44,588 45,739 (2.5) % 134,372 122,763 9.5 %

Operating Expenses Cost of revenues Equipment 4,484 4,828 (7.1) % 13,047 14,053 (7.2) % Broadcast, programming and operations 7,066 7,227 (2.2) % 22,448 17,842 25.8 % Other cost of revenues (exclusive of depreciation and amortization shown separately below) 8,604 8,651 (0.5) % 25,910 24,215 7.0 % Selling, general and administrative 9,584 9,598 (0.1) % 29,077 26,179 11.1 % Depreciation and amortization 6,949 8,166 (14.9) % 21,256 20,538 3.5 % Total Operating Expenses 36,687 38,470 (4.6) % 111,738 102,827 8.7 % Operating Income 7,901 7,269 8.7 % 22,634 19,936 13.5 % Interest Expense 2,083 2,051 1.6 % 6,373 5,845 9.0 % Equity in Net Income (Loss) of Affiliates 3 (64) - % 36 (71) - % Other Income (Expense) - Net (935) 1,053 - % (967) 5,108 - % Income Before Income Taxes 4,886 6,207 (21.3) % 15,330 19,128 (19.9) % Income Tax Expense 937 1,391 (32.6) % 3,059 4,305 (28.9) % Net Income 3,949 4,816 (18.0) % 12,271 14,823 (17.2) % Less: Net Income Attributable to Noncontrolling Interest (249) (98) - % (762) (311) - % Net Income Attributable to AT&T $ 3,700 $ 4,718 (21.6) % $ 11,509 $ 14,512 (20.7) %

Basic Earnings Per Share Attributable to AT&T $ 0.50 $ 0.65 (23.1) % $ 1.57 $ 2.19 (28.3) % Weighted Average Common Shares Outstanding (000,000) 7,327 7,284 0.6 % 7,321 6,603 10.9 %

Diluted Earnings Per Share Attributable to AT&T $ 0.50 $ 0.65 (23.1) % $ 1.57 $ 2.19 (28.3) % Weighted Average Common Shares Outstanding with Dilution (000,000) 7,356 7,320 0.5 % 7,350 6,630 10.9 %

13 CONTENTS

1 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION AT&T Inc. Financial Data AT&T INC. FINANCIAL DATA

Consolidated Balance Sheets Dollars in millions Unaudited Sep. 30, Dec. 31, 2019 2018 Assets Current Assets Cash and cash equivalents $ 6,588 $ 5,204 Accounts receivable - net of allowances for doubtful accounts of $1,121 and $907 22,921 26,472 Prepaid expenses 1,493 2,047 Other current assets 19,693 17,704 Total current assets 50,695 51,427 Noncurrent Inventories and Theatrical Film and Television Production Costs 12,014 7,713 Property, Plant and Equipment – Net 131,316 131,473 Goodwill 146,106 146,370 Licenses – Net 96,026 96,144 Trademarks and Trade Names – Net 23,855 24,345 Distribution Networks – Net 15,806 17,069 Other Intangible Assets – Net 22,060 26,269 Investments in and Advances to Equity Affiliates 4,137 6,245 Operating Lease Right-of-Use Assets 24,477 - Other Assets 22,304 24,809 Total Assets $ 548,796 $ 531,864

Liabilities and Stockholders’ Equity Current Liabilities Debt maturing within one year $ 11,608 $ 10,255 Accounts payable and accrued liabilities 43,955 43,184 Advanced billings and customer deposits 6,097 5,948 Accrued taxes 2,741 1,179 Dividends payable 3,725 3,854 Total current liabilities 68,126 64,420 Long-Term Debt 153,568 166,250 Deferred Credits and Other Noncurrent Liabilities Deferred income taxes 57,786 57,859 Postemployment benefit obligation 22,853 19,218 Operating lease liabilities 22,288 - Other noncurrent liabilities 29,848 30,233 Total deferred credits and other noncurrent liabilities 132,775 107,310 Stockholders’ Equity Common stock 7,621 7,621 Additional paid-in capital 125,139 125,525 Retained earnings 59,347 58,753 Treasury stock (11,195) (12,059) Accumulated other comprehensive income 2,137 4,249 Noncontrolling interest 11,278 9,795 Total stockholders’ equity 194,327 193,884 Total Liabilities and Stockholders' Equity $ 548,796 $ 531,864

14 CONTENTS

2 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

ATT Inc inancial Data AT&T INC. FINANCIAL DATA

onsolidated Statements o ash lows Dollars in millions Unaudited ieoth eriod Operating Actiities et icoe , dustets to recocile et icoe to et cash roided y oerati actiities ereciatio ad aortiatio , ortiatio o il ad teleisio costs , distriuted earis ro iestets i equity ailiates roisio or ucollectile accouts , eerred icoe ta eese eeit , et ai loss ro iestets et o iairets , esio ad ostiretireet eeit eese credit , ctuarial ai loss o esio ad ostretireet eeits , haes i oerati assets ad liailities eceiales , ther curret assets ietories ad theatrical il ad teleisio roductio costs , ccouts ayale ad other accrued liailities quiet istallet receiales ad related sales eerred custoer cotract acquisitio ad ulillet costs ostretireet clais ad cotriutios ther et Total adustets , et ash roided y erati ctiities ,

Inesting Actiities aital eeditures urchase o roerty ad equiet , terest duri costructio cquisitios et o cash acquired , isositios , urchases sales ad settleet o securities ad iestets et daces to ad iestets i equity ailiates et ash collectios o deerred urchase rice et ash sed i esti ctiities ,

inancing Actiities et chae i shortter orrois ith oriial aturities o three oths or less ssuace o other shortter orrois , eayet o other shortter orrois , ssuace o loter det , eayet o loter det , ayet o edor iaci , urchase o treasury stock ssuace o treasury stock ssuace o ocotrolli iterest i susidiary , iideds aid , ther et ash sed i iaci ctiities , et icrease decrease i cash ad cash equialets ad restricted cash , ash ad cash equialets ad restricted cash eii o year , ash and ash Equialents and estricted ash End o Period ,

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3 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION ATT Inc ATTonsolidated Inc Supplementary Data onsolidated Supplementary Data AT&T INC. CONSOLIDATED SUPPLEMENTARY DATA Supplementary inancial Data Dollars in millions except per share amounts Supplementary inancial Data DollarsUnaudited in millions except per share amounts Third uarter ercet ieoth eriod ercet Unaudited Third uarter ercethae ieoth eriod ercethae aital eeditures hae hae aitalurchase eeditures o roerty ad equiet , , urchaseterest duri o roerty costructio ad equiet , , Totalterest aital duri editures costructio , , Total aital editures , , iideds eclared er hare iideds eclared er hare d o eriod oo hares utstadi , det o atio eriod oo hares utstadi , etTotal atioloyees , Total loyees ,

Supplementary Operating Data Subscribers and connections in thousands Supplementary Operating Data SubscribersUnaudited and connections in thousands eteer ercet Unaudited eteer ercethae ireless Subscribers hae irelessoestic Subscribers , oesticeico , , Totaleico ireless uscriers , , Total ireless uscriers , ideo onnections ideooestic onnections , oesticati erica , , Totalati ideo erica oectios , Total ideo oectios , roadband onnections roadband onnections , , Total roadad oectios , Total roadad oectios , oice onnections oiceetork onnections ccess ies , etorkerse occess oectios ies , Totalerse etail oiceo oectios oectios , , Total etail oice oectios ,

Third uarter ercet ieoth eriod ercet Third uarter ercethae ieoth eriod ercethae ireless Net Additions hae hae irelessoestic Net Additions , , oesticeico , , Totaleico ireless et dditios , , Total ireless et dditios , , ideo Net Additions ideooestic Net Additions , , oesticati erica , , Totalati ideo erica et dditios , , Total ideo et dditios , , roadband Net Additions roadband Net Additions Total roadad et dditios Total roadad et dditios

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4 4 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

COMMUNICATIONS SEGMENT The Communications segment provides wireless and wireline telecom, video and broadband services to consumers ONIATIONS SEENT located in the U.S. or in U.S. territories and businesses globally. The Communications segment contains three reporting units: Mobility, Entertainment Group, and Business Wireline. Historical results in the Mobility and Business Wireline The ouicatios seet roides ireless ad irelie teleco ideo ad roadad serices to cosuers located i the or i business units of the Communications segment have been recast to remove operations in Puerto Rico and the territories ad usiesses loally The ouicatios seet cotais three reorti uits oility tertaiet rou ad usiess U.S.irelie Virgin istorical Islands, results which i the we oility began ad held-for-sale usiess irelie accounting usiess uits in othe the third ouicatios quarter of seet 2019. hae ee recast to reoe oeratios i uerto ico ad the iri slads hich e ea heldorsale accouti i the third quarter o

Segment esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Segment Operating eenues oility , , tertaiet rou , , usiess irelie , , Total Segment Operating eenues , ,

Segment Operating ontribution oility , , tertaiet rou , , usiess irelie , , Total Segment Operating ontribution , ,

obility

oility roides atioide ireless serice ad equiet esults hae ee recast to coor to the curret eriods resetatio

obility esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Operating eenues erice , , quiet , , Total Operating eenues , ,

Operating Epenses eratios ad suort , , ereciatio ad aortiatio , , Total Operating Epenses , , Operating Income , , Equity in Net Income Loss o Ailiates Operating ontribution , ,

Operating Income argin

Supplementary Operating Data Subscribers and connections in thousands Unaudited eteer ercet hae obility Subscribers ostaid sarthoes , ostaid eature hoes ad datacetric deices , ostaid , reaid , eseller , oected eices , Total oility uscriers , 17 CONTENTS ostaid hoe uscriers , Total hoe uscriers ,

Third uarter ieoth eriod ercet hae obility Net Additions ostaid reaid eseller oected eices , , Total oility et dditios , ,

ostaid hoe et dditios Total hoe et dditios

ostaid hur ostaid hoely hur

5 ONIATIONS SEENT

The ouicatios seet roides ireless ad irelie teleco ideo ad roadad serices to cosuers located i the or i territories ad usiesses loally The ouicatios seet cotais three reorti uits oility tertaiet rou ad usiess irelie istorical results i the oility ad usiess irelie usiess uits o the ouicatios seet hae ee recast to reoe oeratios i uerto ico ad the iri slads hich e ea heldorsale accouti i the third quarter o

Segment esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Segment Operating eenues oility , , tertaiet rou , , usiess irelie , , Total Segment Operating eenues , , INVESTOR BRIEFING Segment Operating ontribution FINANCIAL AND OPERATIONAL Q3 oility2019 AT&T EARNINGS , , tertaiet rou , , INFORMATION usiess irelie , , Total Segment Operating ontribution , , MOBILITY Mobilityobility provides nationwide wireless service and equipment. Results have been recast to conform to the current period's presentation. oility roides atioide ireless serice ad equiet esults hae ee recast to coor to the curret eriods resetatio

obility esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Operating eenues erice , , quiet , , Total Operating eenues , ,

Operating Epenses eratios ad suort , , ereciatio ad aortiatio , , Total Operating Epenses , , Operating Income , , Equity in Net Income Loss o Ailiates Operating ontribution , ,

Operating Income argin

ostaid hoe uscriers , Total hoe uscriers ,

Third uarter ieoth eriod ercet hae obility Net Additions ostaid reaid eseller oected eices , , Total oility et dditios , ,

ostaid hoe et dditios Total hoe et dditios

ostaid hur ostaid hoely hur

18 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

EntertainmentENTERTAINMENT roup GROUP

tertaietEntertainment rou Group roides provides ideo icludivideo, including oertheto over-the-top TT serices (OTT) roadad services, ad broadband oice couicatio and voice serices communication riarilyservices to primarily residetial to custoers residential This customers. usiess uit This also businesssells adertisi unit alsoo ideo sells distriutio advertising lator on videos distribution platforms.

Entertainment roup esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Operating eenues ideo etertaiet , , ihseed iteret , , eacy oice ad data serices , ther serice ad equiet , Total Operating eenues , ,

Operating Epenses eratios ad suort , , ereciatio ad aortiatio , , Total Operating Epenses , , Operating Income , , Equity in Net Income Loss o Ailiates Operating ontribution , ,

Operating Income argin

Supplementary Operating Data Subscribers and connections in thousands Unaudited eteer ercet hae ideo onnections reiu T , TT o , Total ideo oectios ,

roadband onnections , Total roadad oectios , ier roadad oectios icluded i ,

oice onnections etail osuer itched ccess ies , erse osuer o oectios , Total etail osuer oice oectios ,

Third uarter ercet ieoth eriod ercet hae hae ideo Net Additions reiu T , , TT o Total ideo et dditios , ,

roadband Net Additions Total roadad et dditios ier roadad et dditios icluded i

cludes the iact o custoers that irated to TT o

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6 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

BUSINESSusiness ireline WIRELINE usiness ireline Businessusiess irelie Wireline uit unit roides provides adaced advanced ased IP-based serices as services, ell as traditioal as well asdata traditional serices to datausiess services custoers to business esults hae customers. ee recast Resultsto coor have to the been curret recast eriods to conform resetatio to the current period's presentation. usiess irelie uit roides adaced ased serices as ell as traditioal data serices to usiess custoers esults hae ee recast to coor to the curret eriods resetatio usiness ireline esults Dollars in millions Unaudited usinessThird uarter ireline esultsercet ieoth eriod ercet Dollars in millions hae hae OperatingUnaudited eenues Third uarter ercet ieoth eriod ercet trateic ad aaed serices , hae , hae Operatingeacy oice eenues ad data serices , , thertrateic serice ad adaaed equiet serices , , , eacy oice ad data serices , , Total Operating eenues , , ther serice ad equiet , Operating Total Operating Epenses eenues , , eratios ad suort , , ereciatioOperating Epenses ad aortiatio , , eratios Total Operating ad suort Epenses , , Operatingereciatio Income ad aortiatio , , ,, Equity Total in Operating Net Income Epenses Loss o Ailiates , , Operating Income , , Operating ontribution , , Equity in Net Income Loss o Ailiates Operating Incomeontribution argin , , Operating Income argin usiness Solutions usiness Solutions BUSINESSs a suleetal SOLUTIONS resetatio to our ouicatios seet oerati results e are roidi a ie o our TT usiess olutios results hich icludes oth ireless ad ied oeratios This coied ie resets a colete roile o the etire usiess custoer Ass aa suleetal supplemental resetatio presentation to our toouicatios our Communications seet oerati segment results operating e are roidi results, wea ie are o providing our TT usiess a view ofolutios our relatioshi ad uderscores the iortace o oile solutios to seri our usiess custoers esults hae ee recast to coor to AT&Tresults Business hich icludes Solutions oth ireless results ad which ied oeratiosincludes both This coiedwireless ieand resetsfixed operations. a colete roileThis combinedo the etire viewusiess presents custoer a the curret eriods resetatio completerelatioshi profilead uderscores of the theentire iortace business o oilecustomer solutios relationship to seri andour usiessunderscores custoers the importanceesults hae ee of recastmobile to solutions coor to tothe serving curret eriods our business resetatio customers. Results have been recast to conform to the current period's presentation. usiness Solutions esults Dollars in millions Unaudited usinessThird uarter Solutions esultsercet ieoth eriod ercet Dollars in millions hae hae Unaudited Third uarter ercet ieoth eriod ercet Operating eenues hae hae ireless serice , , Operating eenues trateic ad aaed serices , , ireless serice , , eacy oice ad data serices , , trateic ad aaed serices , , ther serice ad equiet , eacy oice ad data serices , , ireless equiet , ther serice ad equiet , Total Operating eenues , , ireless equiet , Total Operating eenues Operating Epenses , , eratios ad suort , , Operating Epenses ereciatio ad aortiatio , , eratios ad suort , , Total Operating Epenses , , ereciatio ad aortiatio , , Operating Income , , Total Operating Epenses Equity in Net Income Loss o Ailiates , , Operating Income , , Operating ontribution , , Equity in Net Income Loss o Ailiates Operating ontribution , , Operating Income argin

Operating Income argin

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7 7 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

WARNERMEDIA SEGMENT ANEEDIA SEENT The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in ThevariousANEareredia physicalEDIA SEENT seet and digital deelos formats roduces globally. ad distriutesResults from eature Turner, ils teleisioHome Box ai Office ad other(HBO) cotet and Warneri arious Bros. hysical businesses ad diital oratsare combined loally esultswith AT&T's ro Turer Regional oe Sports o ice Network (RSN) ad arer and Otter ros usiesses Media Holdingsare coied in the ith WarnerMedia TTs eioal segment. orts etork Theareredia ad tter edia seet oldis deelos i the roducesareredia ad seet distriutes eature ils teleisio ai ad other cotet i arious hysical ad diital orats loally esults ro Turer oe o ice ad arer ros usiesses are coied ith TTs eioal orts etork ad tter edia oldis i the areredia seet Segment esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet Segment esults hae hae SegmentDollars in millionsOperating eenues Unaudited Third uarter ercet ieoth eriod ercet Turer , , , hae , hae Segmentarer Operating ros eenues , , liiatiosTurer ad other , , Total Segment Operating eenues ,, , , arer ros , , liiatios ad other Segment Operating ontribution Total Segment Operating eenues , , Turer , , , Segmentarer Operating ros ontribution , liiatiosTurer ad other , , Total Segment Operating ontribution , , arer ros , liiatios ad other Total Segment Operating ontribution , , Turner

TurerTurnerTURNER is corised o the areredia usiesses aaed y Turer as ell as our This usiess uit creates ad roras raded esTurner etertaiet is comprised sorts of the ad WarnerMediakids ultilator businesses cotet that managed is sold to byarious Turner distriutio as well ailiates as our RSN. Turer This also business sells adertisi unit creates o its etorks ad diital roerties Turerand programs is corised branded o the areredia news, entertainment, usiesses aaed sports y and Turer kids as multi-platform ell as our This content usiess that uit is creates sold to ad various roras distribution raded esaffiliates. etertaiet Turner sorts also sellsad kids advertising ultilator on its cotet networks that is andsold digital to arious properties. distriutio ailiates Turer also sells adertisi o its etorks ad diital roerties Turner esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet Turner esults hae hae Dollars in millions Operating eenues Unaudited Third uarter ercet ieoth eriod ercet uscritio , , hae hae dertisi , Operating eenues otet ad other uscritio , , Total Operating eenues , , dertisi , otet ad other Operating Epenses Total Operating eenues , , eratios ad suort , , ereciatio ad aortiatio Operating Epenses Total Operating Epenses , , eratios ad suort , , Operating Income , , ereciatio ad aortiatio Equity in Net Income o Ailiates Total Operating Epenses , , Operating ontribution , , Operating Income , , Equity in Net Income o Ailiates Operating Income argin Operating ontribution , ,

Operating Income argin

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8 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

omeHOME o BOX Oice OFFICE omeHome oBox OiceOffice consists of premium pay television and OTT services domestically and premium pay, basic tier oe o ice cosists o reiu ay teleisio ad TT serices doestically ad reiu ay asic tier teleisio ad TT serices television and OTT services internationally, as well as content licensing and home entertainment. iteratioally as ell as cotet licesi ad hoe etertaiet oe o ice cosists o reiu ay teleisio ad TT serices doestically ad reiu ay asic tier teleisio ad TT serices iteratioally as ell as cotet licesi ad hoe etertaiet ome o Oice esults Dollars in millions ome o Oice esults Unaudited Third uarter ercet ieoth eriod ercet Dollars in millions hae hae Unaudited Third uarter ercet ieoth eriod ercet Operating eenues hae hae uscritio , , Operating eenues otet ad other uscritio , , Total Operating eenues , , otet ad other Total Operating eenues , , Operating Epenses eratios ad suort , , Operating Epenses ereciatio ad aortiatio eratios ad suort , , Total Operating Epenses , , ereciatio ad aortiatio Operating Income , Total Operating Epenses , , Equity in Net Income o Ailiates Operating Income , Operating ontribution , Equity in Net Income o Ailiates Operating ontribution , Operating Income argin Operating Income argin arner ros arner ros arerWARNER ros cosists BROS. o the roductio distriutio ad licesi o teleisio rorai ad eature ils the distriutio o hoe etertaiet roducts ad the roductio ad distriutio o aes arerWarner ros Bros. cosists consists o the of roductio the production, distriutio distribution ad licesi and o licensing teleisio ofrorai television ad programming eature ils andthe distriutio feature films, o hoe the etertaietdistribution ofroducts home ad entertainment the roductio products ad distriutio and the o aes production and distribution of games. arner ros esults Dollars in millions arner ros esults Unaudited Third uarter ercet ieoth eriod ercet Dollars in millions hae hae Unaudited Third uarter ercet ieoth eriod ercet Operating eenues hae hae Theatrical roduct , , Operating eenues Teleisio roduct , , Theatrical roduct , , ideo aes ad other , Teleisio roduct , , Total Operating eenues , , ideo aes ad other , Total Operating eenues , , Operating Epenses eratios ad suort , , Operating Epenses ereciatio ad aortiatio eratios ad suort , , Total Operating Epenses , , ereciatio ad aortiatio Operating Income , Total Operating Epenses , , Equity in Net Income Loss o Ailiates Operating Income , Operating ontribution , Equity in Net Income Loss o Ailiates Operating ontribution , Operating Income argin Operating Income argin

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9 9 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

LATIN AEIA AMERICA SEENT SEGMENT The Latin America segment provides entertainment and wireless service outside of the U.S. Our international The ati erica seet roides etertaiet ad ireless serice outside o the ur iteratioal susidiaries coduct usiess i subsidiariestheir local currecy conduct ad oeratibusiness results in theirare localcoerted currencyto and dollars operating usi oicial results echae are converted rates The atito U.S. erica dollars seet using official cotais to exchangeusiess uits rates. rio Thead eico Latin America segment contains two business units: Vrio and Mexico.

Segment esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Segment Operating eenues rio , , eico , Total Segment Operating eenues , ,

Segment Operating ontribution rio eico Total Segment Operating ontribution

eico rioVRIO eico roides ireless serices ad equiet to custoers i eico

rioVrio roides provides etertaiet entertainment serices services to custoers to customers utilii satellite utilizingeico techoloy satelliteesults itechnology ati erica in adLatin the America ariea and the Caribbean. Dollars in millions Unaudited Thirdrio uarter esults ercet ieoth eriod ercet Dollars in millions hae hae UnauditedOperating eenues Third uarter ercet ieoth eriod ercet ireless serice hae , hae ireless equiet Operating eenues , , Total Operating eenues , Operating Epenses eratiosOperating adEpenses suort , ereciatioeratios ad ad suort aortiatio , ereciatio ad aortiatio Total Operating Epenses , , Total Operating Epenses , Operating Income Operating Income Loss Equity in Net Income o Ailiates Equity in Net Income o Ailiates Operating ontribution Operating ontribution Operating Income argin Operating Income argin Supplementary Operating Data Supplementary Operating Data Subscribers and connections in thousands Subscribers and connections in thousands Unaudited eteer ercet Unaudited eteer ercet hae hae rioeico ideo ireless Subscribers Subscribers , ostaid , reaid , eseller Third uarter ercet ieoth eriod ercet Total eico ireless uscriers hae , hae rio ideo Net Subscriber Additions Third uarter ercet ieoth eriod ercet ecludes the iact o suscrier discoectios resulti ro coori ourhae ideo credit olicy across the reio hae eicohich irelessis relected Net i eiiAdditions o eriod suscriers ostaid reaid , eseller Total eico ireless et uscrier dditios

ecludes the iact o suscrier discoectios resulti ro the chur o custoers related to sales y certai thirdarty distriutors ad the suset o serices i eico hich are relected i eii o eriod suscriers 23 CONTENTS

11 LATIN AEIA SEENT

The ati erica seet roides etertaiet ad ireless serice outside o the ur iteratioal susidiaries coduct usiess i their local currecy ad oerati results are coerted to dollars usi oicial echae rates The ati erica seet cotais to usiess uits rio ad eico

Segment esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Segment Operating eenues rio , , eico , Total Segment Operating eenues , ,

Segment Operating ontribution INVESTOR BRIEFING Q3 rio2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL eico INFORMATION Total Segment Operating ontribution

eicoMEXICO

eico Mexico roides provides ireless wireless serices services ad equiet and equipment to custoers to customers i eico in Mexico.

eico esults Dollars in millions Unaudited Third uarter ercet ieoth eriod ercet hae hae Operating eenues ireless serice , ireless equiet Total Operating eenues ,

Operating Epenses eratios ad suort , ereciatio ad aortiatio Total Operating Epenses , Operating Income Loss Equity in Net Income o Ailiates Operating ontribution

Operating Income argin

Supplementary Operating Data Subscribers and connections in thousands Unaudited eteer ercet hae eico ireless Subscribers ostaid , reaid , eseller Total eico ireless uscriers ,

Third uarter ercet ieoth eriod ercet hae hae eico ireless Net Additions ostaid reaid , eseller Total eico ireless et uscrier dditios

ecludes the iact o suscrier discoectios resulti ro the chur o custoers related to sales y certai thirdarty distriutors ad the suset o serices i eico hich are relected i eii o eriod suscriers

24 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

XANDRAND SEENT SEGMENT AND SEENT The Xandr segment provides advertising services. These services utilize data insights to develop higher value targeted Theadvertising.adr seet Certain roides revenues adertisi in this sericessegment These are sericesalso reported utilie data by the isihts Communicationsto deelo hiher segment alue tareted and are adertisi eliminatedertai reeuesTheuponadr consolidation. iseet this seet roides are also adertisi reorted serices y the ouicatios These serices utilieseet data ad isihts are eliiatedto deelo uo hiher cosolidatio alue tareted adertisi ertai reeues i this seet are also reorted y the ouicatios seet ad are eliiated uo cosolidatio Segment Operating esults Dollars in millions Segment Operating esults UnauditedDollars in millions Third uarter ercet ieoth eriod ercet Unaudited Third uarter ercethae ieoth eriod ercethae Segment Operating eenues hae , hae Segment Operating eenues , Segment Operating Epenses eratiosSegment Operating ad suort Epenses ereciatioeratios ad ad suort aortiatio ereciatio Total Segment ad aortiatioOperating Epenses Operating Total Segment Income Operating Epenses EquityOperating in Net Income Income o Ailiates SegmentEquity in NetOperating Income ontribution o Ailiates Segment Operating ontribution Segment Operating Income argin Segment Operating Income argin Supplemental ATT Adertising eenues Supplemental ATT Adertising eenues SUPPLEMENTAL AT&T ADVERTISING REVENUES s a suleetal resetatio to our adr seet oerati results e are roidi a ie o total adertisi reeues eerated y AssTT aa suleetalsupplemental hich coies resetatio presentation the adertisito our to reeues adr our seetXandr recorded segment oerati across operatingall resultsoeratie areresults, seetsroidi we Thisare a ie coiedprovidingo total ie adertisia view resets of total reeues the etireadvertising eerated ortolio yo reeuesTTrevenues hich eerated generated coies ro the by TT adertisiAT&T, assets which ad reeues combines reresets recorded athe siiicat across advertisingall strateicoerati revenues iitiatie seets recorded ad Thisroth coied across oortuity all ie operating resetsor TT thesegments. etire ortolio This o reeuescombined eerated view presents ro TT the assets entire ad portfolio reresets of a revenuessiiicat strateicgenerated iitiatie from ad AT&T roth assets oortuity and represents or TT a significant strategic initiative and growth opportunity for AT&T. Adertising eenues Dollars in millions Adertising eenues UnauditedDollars in millions Third uarter ercet ieoth eriod ercet Unaudited Third uarter ercethae ieoth eriod ercethae Operating eenues hae hae Operatingareredia eenues , arerediaouicatios , , ouicatiosadr , adrliiatios , , Totalliiatios Adertising eenues , , , Total Adertising eenues , ,

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12 12 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

SUPPLEMENTALSPPLEENTAL SEENT SEGMENT EONILIATION RECONCILIATION

Three onths Ended Dollars in millions Unaudited September 30, 2019

eratios quity i ad ereciatio erati et coe uort ad coe oss o eet eeues eses T ortiatio oss iliates otriutio ommunications oility , , , , , , tertaiet rou , , , , , , usiess irelie , , , , , , Total ouicatios , , , , , , arneredia Turer , , , , , oe o ice , , arer ros , , liiatios ad other Total areredia , , , , , Latin America rio , eico Total ati erica , , andr eet Total , , , , , , ororate ad ther ororate cquisitiorelated ites , , ertai siiicat ites liiatios ad cosolidatios , TT c , , , , ,

September 30, 2018

eratios quity i ad ereciatio erati et coe uort ad coe oss o eet eeues eses T ortiatio oss iliates otriutio ommunications oility tertaiet rou usiess irelie Total ouicatios arneredia Turer oe o ice arer ros liiatios ad other Total areredia Latin America rio eico Total ati erica andr eet Total ororate ad ther ororate cquisitiorelated ites ertai siiicat ites liiatios ad cosolidatios TT c

26 CONTENTS

13 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS FINANCIAL AND OPERATIONAL INFORMATION

SPPLEENTAL SEENT EONILIATION SUPPLEMENTAL SEGMENT RECONCILIATION

Nine onths Ended Dollars in millions Unaudited September 30, 2019

eratios quity i ad ereciatio erati et coe uort ad coe oss o eet eeues eses T ortiatio oss iliates otriutio ommunications oility , , , , , , tertaiet rou , , , , , , usiess irelie , , , , , , Total ouicatios , , , , , , arneredia Turer , , , , , oe o ice , , , , , arer ros , , , , , liiatios ad other Total areredia , , , , , Latin America rio , , eico , , Total ati erica , , andr , eet Total , , , , , , ororate ad ther ororate , , , cquisitiorelated ites , , ertai siiicat ites liiatios ad cosolidatios , , , , TT c , , , , ,

September 30, 2018 eratios quity i ad ereciatio erati et coe uort ad coe oss o eet eeues eses T ortiatio oss iliates otriutio ommunications oility tertaiet rou usiess irelie Total ouicatios arneredia Turer oe o ice arer ros liiatios ad other Total areredia Latin America rio eico Total ati erica andr eet Total ororate ad ther ororate cquisitiorelated ites ertai siiicat ites liiatios ad cosolidatios TT c

27 CONTENTS

14 INVESTOR BRIEFING Q3 2019 AT&T EARNINGS

Discussion and Reconciliation of Non-GAAP Measures

We Discussion believe theand followingReconciliation measuresof areNon relevant-GAAP andMeasures useful information to investors as they are part of AT&T's internal managementDiscussion and reportingReconciliation and planningof Non processes-GAAP andMeasures are important metrics that management uses to evaluate the operatingWe believe performancethe following of AT&Tmeasures and itsare segments.relevant Managementand useful information also uses theseto investors measuresas asthey a methodare part ofof comparingAT&T's performanceWeinternalbelievemanagement thewithfollowing thatreporting of manymeasures ofand ourplanningare competitors.relevantprocessesand Theseusefuland measuresareinformationimportant shouldmetricsto beinvestors consideredthat managemenas inthey additionaret usespart to, buttoof evaluateAT&T's not asinternalthe a substituteoperatingmanagement for,performance otherreporting measuresof AT&Tand ofplanning financialand itsprocesses performancesegments.andManagement arereportedimportant in alsoaccordancemetricsusesthatthese withmanagemen measuresU.S. generallyt asuses aacceptedtomethodevaluate of accountingthecomparingoperating principlesperformanceperformance (GAAP).withof thatAT&Tof manyandofitsoursegments.competitors.ManagementThese measuresalso usesshouldthesebemeasuresconsideredasinaadditionmethod to,of comparingbut not as performancea substitute for,withotherthat ofmeasuresmany ofofourfinancialcompetitors.performanceThese measuresreported shouldin accordancebe consideredwith U.S.in additiongenerallyto, butacceptednot asaccountinga substitutprinciplese for, other(GAAP).measures of financial performance reported in accordance with U.S. generally FREEaccepted CASHaccounting FLOWprinciples (GAAP). FreeFree cashCash flowFlow is defined as cash from operations minus capital expenditures. Free cash flow after dividends is defined Free Cash Flow asFree cashcash fromflow operationsis defined minusas cashcapitalfrom expendituresoperations andminus dividends.capital Freeexpenditures. cash flow Freedividendcash payoutflow afterratio divideis definednds is asFreedefined the cashpercentageas flowcash isfrom ofdefined dividendsoperationsas cashpaidminus tofrom freecapitaloperations cashexpenditures flow.minus We believecandapital dividends.theseexpenditures. metricsFree providecashFreeflow cashusefuldividendflow informationafterpayoutdivide to ratioournds isis investorsdefined as becausethecashpercentagefrom managementoperationsof dividends viewsminus freepaidcapital cashto freeexpenditures flowcash asflow an important.andWe dividends.believe indicatortheseFreemetrics of cashhow provideflowmuchdividend cashuseful is generatedinformationpayout ratio by tois routinedefinedour investors businessas thebecausepercentage operations,managementof includingdividendsviews capitalpaidfreeto expenditures,freecashcashflowflowas andan. Weimportant makesbelieve decisionsindicatorthese metrics basedof how onprovide muchit. Managementusefulcash isinformationgenerated also viewsbyto freeourroutine cashinvestorsbusiness flowbecause as operations,a measuremanagement ofincluding cashviews availablecapitalfree tocash expenditures,pay flowdebtas andan returnandimportantmakes cashindicator todecisions shareowners.ofbasedhow muchon it.cashManagementis generatedalsoby routineviews freebusinesscash flowoperations,as a measureincludingof cashcapitalavailableexpenditures,to pay debtandandmakesreturn cashdecisionsto shareowners.based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners. Free Cash Flow and Free Cash Flow Dividend Payout Ratio Dollars in millions Free Cash Flow and Free Cash Flow Dividend Payout Ratio Dollars in millions Third Quarter Nine-Month Period 2019Third Quarter2018 2019Nine-Month Period2018 Net cash provided by operating activities $ 201911,389 $ 201812,346 $ 201936,725 $ 201831,522 NetLess: cash Capital provided expenditures by operating activities $ 11,389(5,189) $ 12,346(5,873) $ (15,843)36,725 $ (17,099)31,522 Less:Free CashCapital Flow expenditures (5,189)6,200 (5,873)6,473 (15,843)20,882 (17,099)14,423 Free Cash Flow 6,200 6,473 20,882 14,423 Less: Dividends paid (3,726) (3,631) (11,162) (9,775) Less:Fee Cash Dividends Flow after paid Dividends $ (3,726)2,474 $ (3,631)2,842 $ (11,162)9,720 $ (9,775)4,648 FeeFree Cash Cash Flow Flow after Dividend Dividends Payout Ratio $ 60.1%2,474 $ 56.1%2,842 $ 53.5%9,720 $ 67.8%4,648 Free Cash Flow Dividend Payout Ratio 60.1% 56.1% 53.5% 67.8%

Cash Paid for Capital Investment CASHCash Paid PAIDfor CapitalFOR CAPITALInvestment INVESTMENT In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms InInof connectionconnection120 days or withwithmore capitalcapital, referred improvements,improvements,to as vendor wewefinancing, negotiatenegotiatewhich withwith somesomeare excluded ofof ourour vendorsvendorsfrom capital toto obtainobtainexpenditures favorablefavorable andpaymentpaymentreported termsin ofofaccordance 120120 daysdays orwithor more,moreGAAP referred, referredas financing toto asas vendorvendoractivities. financing,financing,We present whichwhich anareare additionalexcludedexcluded fromviewfrom capitalofcapitalcash expenditurespaidexpendituresfor capital andandinvestment reportedreported intoin accordanceaccordanceprovide investors withwith GAAPGAAPwith asaas financingcomprehensivefinancing activities.activities.view WeofWe presentcashpresentuse andan additionaltoadditionalinvest inviewvouriew of networks,ofcashcash paidpaid forproduct forcapitalcapitaldevelopment investmentinvestments toand to provide investors with a comprehensive view of cash used to invest in our networks, product developments and providesupport systems.investors with a comprehensive view of cash used to invest in our networks, product developments and support systems. support systems. Cash Paid for Capital Investment Dollars in millions Cash Paid for Capital Investment Dollars in millions Third Quarter Nine-Month Period 2019Third Quarter2018 2019Nine-Month Period2018 Capital Expenditures $ 2019(5,189) $ 2018(5,873) $ 2019(15,843) $ 2018(17,099) CapitalCash paid Expenditures for vendor financing $ (5,189)(765) $ (5,873)(90) $ (15,843)(2,601) $ (17(34,099)7) Cash paidpaid for for vendor Capital financing Investment $ (5,954)(765) $ (5,96(930)) $ (18,444)(2,601) $ (17,44(3467)) Cash paid for Capital Investment $ (5,954) $ (5,963) $ (18,444) $ (17,446)

EBITDA EBITDA Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. 28 OurForCONTENTSAT&T,calculationEBITDAof EBITDA,excludesasotherpresented,incomemay(expense)differ –fromnet, similarlyand equitytitledin netmeasuresincome (loss)reportedof affiliates,by other companies.as these do Fornot AT&T,reflect theEBITDAoperatingexcludesresultsotherof ourincomesubscriber(expense)base–ornet,operationsand equitythatin netareincomenot under(loss)ourofcontrol.affiliates,Equityas thesein netdo notincomereflect(loss)the ofoperatingaffiliatesresrepresentsults of ourthesubscriberproportionatebase orshareoperationsof the thatnet incomeare not (loss)under ofouraffiliatescontrol. Equityin whichin wenet incomeexercise(lsignificantoss) of affiliatesinfluence,representsbut do notthe control.proportionateBecausesharewe doof thenot netcontrolincomethese(loss)entities,of affiliatesmanagementin whichexcludeswe exercisethese resultssignificantwhen evaluatinginfluence, thebutperdoformancenot control.of ourBecauseprimarywe operations.do not controlEBITDAthese entities,also excludesmanagementinterest excludesexpense theseand theresultsprovisionwhenforevaluatingincome taxes.the perExcludingformance theseof ouritemsprimaryeliminatesoperations.the expensesEBITDAassalsoociatedexcludeswithinterestour capitalexpenseand andtax structures.the provisionFinally,for incomeEBITDAtaxes.excludesExcludingdepreciationthese itemsand eliminatesamortizationtheinexpensesorder to asseliminateociatedthewithimpactour capitalof capitaland taxinvestments.structures.EBITDAFinally, EBITDAdoes not giveexcludeseffectdepreciationto cash usedandforamortizatidebt serviceon in requirementsorder to eliminateand thusthe impactdoes notof reflectcapital investments.available fundsEBITDAfor distributions,does not reinvestmentgive effect toorcashotheruseddiscretionaryfor debt uses.serviceEBITDArequirementsis not presenteand thusd asdoesan alternativenot reflect avmeasureailable offundsoperatingfor distributions,results orreinvestmentcash flows fromor otheroperations,discretionaryas determineduses. EBITDAin accordanceis not presentewithd asU.S.an alternativegenerally measureaccepted accountingof operatingprinciplesresults or(GAAP).cash flows from operations, as determined in accordance with U.S. generally accepted accounting principles (GAAP). EBITDA service margin is calculated as EBITDA divided by service revenues. EBITDA service margin is calculated as EBITDA divided by service revenues. When discussing our segment, business unit and supplemental results, EBITDA excludes equity in net income (loss) Whenof affiliates,discussingand depreciationour segment,andbusinessamortizationunit andfromsupplementaloperating contribution.results, EBITDA excludes equity in net income (loss) of affiliates, and depreciation and amortization from operating contribution. 1 1

INVESTOR BRIEFING Q3 2019 AT&T EARNINGS DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

EBITDA Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with U.S. generally accepted accounting principles (GAAP).

EBITDA service margin is calculated as EBITDA divided by service revenues.

When discussing our segment, business unit and supplemental results, EBITDA excludes equity in net income (loss) of affiliates, and depreciation and amortization from operating contribution. These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers Thesebecause measureswe believe are usedthese bymeasures managementreflect asAT&T's a gaugeability of ourto successgenerate inand acquiring,grow subscriber retainingrevenues and servicingwhile subscribersproviding becausea high welevel believeof customer these measuresservice in reflecta cost- effectiveAT&T's abilitymanner. to generateManagement and growalso usessubscriberthese measuresrevenues aswhilea method providingof a highcomparing level ofoperating customerperformance service in a cost-effectivewith that of many manner.of its competitors.ManagementThe alsofinancial uses theseand measuresoperating asmetrics a methodwhich of comparingaffect EBITDA operatinginclude performancethe key revenue with thatand ofexpense many ofdrivers its competitors.for which maThenagement financialis andresponsible operatingand metricsupon whichwhich affectwe evaluate EBITDA performance.include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance. We believe EBITDA Service Margin (EBITDA as a percentage of service revenues) to be a more relevant measure Wethan believeEBI TDAEBITDAMargin Service(EBITDA Margin (EBITDAas a percentage as a percentageof total revenue) of servicefor revenues)our Mobility to bebusiness a moreunit relevantoperating measuremargin. than EBITDAWe also Marginuse (EBITDAwireless asservice a percentagerevenues ofto totalcalculate revenue)margin for toourfacilitate Mobilitycomparison, business unitboth operatinginternally margin.and externallyWe also use wirelesswith our servicewireless revenuescompetitors, to calculateas they margincalculate to facilitatetheir margins comparison,using wireless both internallyservice revenues and externallyas well. with our wireless competitors, as they calculate their margins using wireless service revenues as well. There are material limitations to using these non-GAAP financial measures. EBITDA, EBITDA margin and There are material limitations to using these non-GAAP financial measures. EBITDA, EBITDA margin and EBITDA service EBITDA service margin, as we have defined them, may not be comparable to similarly titled measures reported by margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore,other companies. these performanceFurthermore, measuresthese performance do not takemeasures into accountdo not certaintake intosignificantaccount items,certain includingsignificant depreciationitems, andinclu amortization,ding depreciation interestand expense,amortization, tax expenseinterest andexpense, equity taxin netexpense incomeand (loss)equity of affiliates.in net income For(loss) marketof comparability,affiliates. managementFor market comparability, analyzes performancemanagement measuresanalyzes thatperformance are similar inmeasures nature tothat EBITDAare similar as wein presentnature toit, andEBITDA consideringas we the economicpresent it, effectand considering of the excludedthe economic expenseeffect itemsof independentlythe excluded expenseas well asitems in connectionindependently withas itswell analysisas in connectionof net income as withcalculatedits analysis in accordanceof net income with GAAP.as calculated EBITDA,in EBITDAaccordance marginwith andGAAP. EBITDAEBITDA, service marginEBITDA shouldmargin be consideredand EBITDA in additionservice to,margin but notshould as a substitutebe considered for, otherin additionmeasuresto, of butfinancialnot as performancea substitute reportedfor, other in measuresaccordanceof withfinancial GAAP. performance reported in accordance with GAAP. EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Net Income $ 3,949 $ 4,816 $ 12,271 $ 14,823 Additions: Income Tax Expense 937 1,391 3,059 4,305 Interest Expense 2,083 2,051 6,373 5,845 Equity in Net (Income) Loss of Affiliates (3) 64 (36) 71 Other (Income) Expense - Net 935 (1,053) 967 (5,108) Depreciation and amortization 6,949 8,166 21,256 20,538 EBITDA 14,850 15,435 43,890 40,474

Total Operating Revenues 44,588 45,739 134,372 122,763 Service Revenues 40,317 41,297 122,024 109,849

EBITDA Margin 33.3% 33.7% 32.7% 33.0% EBITDA Service Margin 36.8% 37.4% 36.0% 36.8%

29 CONTENTS

INVESTOR BRIEFING Q3 2019 AT&T EARNINGS DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Communications Segment Operating Contribution $ 8,036 $ 8,150 $ 24,718 $ 24,498 Additions: Equity in Net (Income) Loss of Affiliates - 1 - 3 Depreciation and amortization 4,598 4,575 13,740 13,724 EBITDA 12,634 12,726 38,458 38,225

Total Operating Revenues 35,401 36,007 105,837 106,498

Operating Income Margin 22.7% 22.6% 23.4% 23.0% EBITDA Margin 35.7% 35.3% 36.3% 35.9%

Mobility Operating Contribution $ 5,742 $ 5,575 $ 16,817 $ 16,144 Additions: Equity in Net (Income) of Affiliates - (1) 1 - Depreciation and amortization 2,011 2,057 6,027 6,218 EBITDA 7,753 7,631 22,845 22,362

Total Operating Revenues 17,701 17,735 52,356 51,965 Service Revenues 13,930 13,828 41,383 40,594

Operating Income Margin 32.4% 31.4% 32.1% 31.1% EBITDA Margin 43.8% 43.0% 43.6% 43.0% EBITDA Service Margin 55.7% 55.2% 55.2% 55.1%

Entertainment Group Operating Contribution $ 1,085 $ 1,104 $ 4,077 $ 3,888 Additions: Equity in Net (Income) Loss of Affiliates (1) (1) (1) 1 Depreciation and amortization 1,316 1,331 3,978 3,986 EBITDA 2,400 2,434 8,054 7,875

Total Operating Revenues 11,197 11,589 33,893 34,498

Operating Income Margin 9.7% 9.5% 12.0% 11.3% EBITDA Margin 21.4% 21.0% 23.8% 22.8%

Total Operating Revenues 6,503 6,683 19,588 20,035

Operating Income Margin 18.6% 22.1% 19.5% 22.3% EBITDA Margin 38.2% 39.8% 38.6% 39.9%

Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 WarnerMedia Segment Operating Contribution $ 2,544 $ 2,528 $ 6,879 $ 2,992 Additions: Equity in Net (Income) of Affiliates (15) 39 (137) 55 Depreciation and amortization 150 134 384 16630 CONTENTS EBITDA 2,679 2,701 7,126 3,213

Total Operating Revenues 7,846 8,204 24,575 9,709

Operating Income Margin 32.2% 31.3% 27.4% 31.4% EBITDA Margin 34.1% 32.9% 29.0% 33.1%

Total Operating Revenues 35,401 36,007 105,837 106,498

Operating Income Margin 22.7% 22.6% 23.4% 23.0% EBITDA Margin 35.7% 35.3% 36.3% 35.9%

Total Operating Revenues 17,701 17,735 52,356 51,965 Service Revenues 13,930 13,828 41,383 40,594

Operating Income Margin 32.4% 31.4% 32.1% 31.1% EBITDA Margin 43.8% 43.0% 43.6% 43.0% EBITDA Service Margin 55.7% 55.2% 55.2% 55.1%

Total Operating Revenues 11,197 11,589 33,893 34,498

Operating Income Margin 9.7% 9.5% 12.0% 11.3% EBITDA Margin 21.4% 21.0% 23.8% 22.8%

Business Wireline Operating Contribution $ 1,209 $ 1,471 $ 3,824 $ 4,466 Additions: Equity in Net (Income) Loss of Affiliates 1 3 - 2 Depreciation and amortization 1,271 1,187 3,735 3,520 EBITDA 2,481 2,661 7,559 7,988 INVESTOR BRIEFING Q3 Total2019 Operating AT&TRevenues EARNINGS 6,503 6,683DISCUSSION AND19,588 RECONCILIATION20,035 OF NON-GAAP MEASURES Operating Income Margin 18.6% 22.1% 19.5% 22.3% EBITDA Margin 38.2% 39.8% 38.6% 39.9%

Total Operating Revenues 7,846 8,204 24,575 9,709

Operating Income Margin 32.2% 31.3% 27.4% 31.4% EBITDA Margin 34.1% 32.9% 29.0% 33.1%

Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Latin America Segment 3 Operating Contribution $ (166) $ (201) $ (548) $ (462) Additions: Equity in Net (Income) of Affiliates (13) (9) (25) (24) Depreciation and amortization 284 297 868 942 EBITDA 105 87 295 456

Total Operating Revenues 1,730 1,833 5,205 5,809

Operating Income Margin -10.3% -11.5% -11.0% -8.4% EBITDA Margin 6.1% 4.7% 5.7% 7.8%

Vrio Operating Contribution $ 13 $ 66 $ 43 $ 281 Additions: Equity in Net (Income) of Affiliates (13) (9) (25) (24) Depreciation and amortization 162 168 496 559 EBITDA 162 225 514 816

Total Operating Revenues 1,013 1,102 3,112 3,710

Operating Income Margin 0.0% 5.2% 0.6% 6.9% EBITDA Margin 16.0% 20.4% 16.5% 22.0%

Mexico Operating Contribution $ (179) $ (267) $ (591) $ (743) Additions: Depreciation and amortization 122 129 372 383 EBITDA (57) (138) (219) (360)

Total Operating Revenues 717 731 2,093 2,099

Operating Income Margin -25.0% -36.5% -28.2% -35.4% EBITDA Margin -7.9% -18.9% -10.5% -17.2%

Segment EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Xandr Operating Contribution $ 327 $ 333 $ 905 $ 95231 Additions:CONTENTS Depreciation and amortization 15 3 41 4 EBITDA 342 336 946 956

Total Operating Revenues 504 445 1,415 1,174

Operating Income Margin 64.9% 74.8% 64.0% 81.1% EBITDA Margin 67.9% 75.5% 66.9% 81.4%

Adjusting Items Adjusting items include revenues and costs we consider non-operational in nature, such as items arising from asset acquisitions or dispositions. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income.

The tax impact of adjusting items is calculated using the effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately 25%.

Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Latin America Segment Operating Contribution $ (166) $ (201) $ (548) $ (462) Additions: Equity in Net (Income) of Affiliates (13) (9) (25) (24) Depreciation and amortization 284 297 868 942 EBITDA 105 87 295 456

Total Operating Revenues 1,730 1,833 5,205 5,809

Operating Income Margin -10.3% -11.5% -11.0% -8.4% EBITDA Margin 6.1% 4.7% 5.7% 7.8%

Vrio Operating Contribution $ 13 $ 66 $ 43 $ 281 Additions: Equity in Net (Income) of Affiliates (13) (9) (25) (24) Depreciation and amortization 162 168 496 559 EBITDA 162 225 514 816

Total Operating Revenues 1,013 1,102 3,112 3,710

Operating Income Margin 0.0% 5.2% 0.6% 6.9% EBITDA Margin 16.0% 20.4% 16.5% 22.0%

Mexico Operating Contribution $ (179) $ (267) $ (591) $ (743) Additions: Depreciation and amortization 122 129 372 383 EBITDA (57) (138) (219) (360) INVESTOR BRIEFING Q3 Total2019 Operating AT&T Revenues EARNINGS 717 731DISCUSSION 2,093AND RECONCILIATION2,099 OF NON-GAAP MEASURES Operating Income Margin -25.0% -36.5% -28.2% -35.4% EBITDA Margin -7.9% -18.9% -10.5% -17.2%

Segment EBITDA, EBITDA Margin and EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Xandr Operating Contribution $ 327 $ 333 $ 905 $ 952 Additions: Depreciation and amortization 15 3 41 4 EBITDA 342 336 946 956

Total Operating Revenues 504 445 1,415 1,174

Operating Income Margin 64.9% 74.8% 64.0% 81.1% EBITDA Margin 67.9% 75.5% 66.9% 81.4%

Adjusting Items ADJUSTINGAdjusting items ITEMSinclude revenues and costs we consider non-operational in nature, such as items arising from asset acquisitions or dispositions. We also adjust for net actuarial gains or losses associated with our pension and Adjustingpostemployment items includebenefit revenuesplans d ueandto coststhe often we consider-significant non-operationalimpact on our inresults nature,(we suchimmediately as items arisingrecognize fromthis gain asset acquisitions or dispositions. We also adjust for net actuarial gains or losses associated with our pension and or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). assets, as included in the GAAP measure of income. Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. The tax impact of adjusting items is calculated using the effective tax rate during the quarter except for adjustments Thethat, taxgiven impacttheir of magnitude,adjusting itemscan driveis calculateda change usingin the theeffective effectivetax taxrate, ratein theseduringcases the quarterwe use exceptthe actual for taxadjustmentsexpense that,or combi given nedtheirmarginal magnitude,rate canof approximately drive a change25%. in the effective tax rate, in these cases we use the actual tax expense

or combined marginal rate of approximately 25%.

Adjusting Items Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Operating Revenues 4 Time Warner merger adjustment $ - $ - $ 72 $ - Adjustments to Operating Revenues - - 72 - Operating Expenses Time Warner and other merger costs 190 361 579 792 Employee separation costs 39 76 381 260 Natural disaster costs - - - 104 Adjustments to Operations and Support Expenses 229 437 960 1,156 Amortization of intangible assets 1,771 2,329 5,719 4,669 Adjustments to Operating Expenses 2,000 2,766 6,679 5,825 Other Merger-related interest and fees1 - - - 1,029 (Gains) losses on sale of investments - (357) (638) (357) Special termination charges, debt redemption costs and other adjustments 11 30 362 78 Actuarial (gain) loss 1,917 - 4,048 (2,726) Adjustments to Income Before Income Taxes 3,928 2,439 10,523 3,849 Tax impact of adjustments 755 548 2,183 765 Tax-related items - - 141 (96) Adjustments to Net Income $ 3,173 $ 1,891 $ 8,199 $ 3,180 1 Includes interest expense incurred on debt issued, redemption premiums and interest income earned on cash held prior to the close of merger transactions.

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures 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. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends. 32 CONTENTS Adjusted Operating Revenues, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies. Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Operating Income $ 7,901 $ 7,269 $ 22,634 $ 19,936 Adjustments to Operating Revenues - - 72 - Adjustments to Operating Expenses 2,000 2,766 6,679 5,825 Adjusted Operating Income 9,901 10,035 29,385 25,761

EBITDA 14,850 15,435 43,890 40,474 Adjustments to Operating Revenues - - 72 - Adjustments to Operations and Support Expenses 229 437 960 1,156 Adjusted EBITDA 15,079 15,872 44,922 41,630

Total Operating Revenues 44,588 45,739 134,372 122,763 Adjustments to Operating Revenues - - 72 - Total Adjusted Operating Revenue 44,588 45,739 134,444 122,763 Service Revenues 40,317 41,297 122,024 109,849 Adjustments to Service Revenues - - 72 - Adjusted Service Revenue 40,317 41,297 122,096 109,849

Operating Income Margin 17.7% 15.9% 16.8% 16.2% Adjusted Operating Income Margin 22.2% 21.9% 21.9% 21.0% Adjusted EBITDA Margin 33.8% 34.7% 33.4% 33.9% Adjusted EBITDA Service Margin 37.4% 38.4% 36.8% 37.9%

Adjusting Items Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Operating Revenues Time Warner merger adjustment $ - $ - $ 72 $ - Adjustments to Operating Revenues - - 72 - Operating Expenses Time Warner and other merger costs 190 361 579 792 Employee separation costs 39 76 381 260 Natural disaster costs - - - 104 Adjustments to Operations and Support Expenses 229 437 960 1,156 Amortization of intangible assets 1,771 2,329 5,719 4,669 Adjustments to Operating Expenses 2,000 2,766 6,679 5,825 Other Merger-related interest and fees1 - - - 1,029 (Gains) losses on sale of investments - (357) (638) (357) Special termination charges, debt redemption costs and other adjustments 11 30 362 78 Actuarial (gain) loss 1,917 - 4,048 (2,726) Adjustments to Income Before Income Taxes 3,928 2,439 10,523 3,849 Tax impact of adjustments 755 548 2,183 765 Tax-related items - - 141 (96) Adjustments to Net Income $ 3,173 $ 1,891 $ 8,199INVESTOR$ BRIEFING3,180 1 Includes interest expense incurred on debt issued, redemption premiums and interest income earned on cash held prior to the close of merger Q3 transactions.2019 AT&T EARNINGS DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, AdjustedAdjusted OperatingEBITDA Income,service Adjustedmargin Operatingand Adjusted Incomediluted Margin,EPS Adjustedare non EBITDA,-GAAP Adjustedfinancial EBITDAmeasures margin,calculated Adjustedby EBITDAexcluding servicefrom marginoperating and Adjustedrevenues, dilutedoperating EPS areexpenses non-GAAPand incomefinancialtax measuresexpense cecalculatedrtain significant by excludingitems fromthat are operating revenues, operating expenses and income tax expense certain significant items that are non-operational non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs. or non-recurring in nature, including dispositions and merger integration and transaction costs. Management believes Management believes that these measures provide relevant and useful information to investors and other users of our that these measures provide relevant and useful information to investors and other users of our financial data in financial data in evaluating the effectiveness of our operations and underlying business trends. evaluating the effectiveness of our operations and underlying business trends.

AdjustedAdjusted OperatingOperating Revenues,Revenues, AdjustedAdjusted OperatingOperating Income,Income, AdjustedAdjusted OperatingOperating IncomeIncome Margin,Margin, AdjustedAdjusted EBITDA,EBITDA, AdjustedAdjusted EBITDAEBITDA margin,margin, AdjustedAdjusted EBITDAEBITDA serviceservice margin marginand Adjustedand Adjusted diluted EPSdiluted shouldEPS beshould consideredbe considered in additionin to,addition but not to,as abut substitutenot as a substitutefor, other measuresfor, other measuresof financialof financialperformanceperformance reportedreported in accordancein accordanc with GAAP.e with AT&T'sGAAP. calculationAT&T's calculationof Adjustedof items,Adjusted as presented,items, as maypresented, differ frommay similarlydiffer from titledsimilarly measurestitled reportedmeasures by otherreported companies.by other companies. Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA Service Margin Dollars in millions Third Quarter Nine-Month Period 2019 2018 2019 2018 Operating Income $ 7,901 $ 7,269 $ 22,634 $ 19,936 Adjustments to Operating Revenues - - 72 - Adjustments to Operating Expenses 2,000 2,766 6,679 5,825 Adjusted Operating Income 9,901 10,035 29,385 25,761

EBITDA 14,850 15,435 43,890 40,474 Adjustments to Operating Revenues - - 72 - Adjustments to Operations and Support Expenses 229 437 960 1,156 Adjusted EBITDA 15,079 15,872 44,922 41,630

Adjusted Diluted EPS

5 Third Quarter Nine-Month Period 2019 2018 2019 2018 Diluted Earnings Per Share (EPS) $ 0.50 $ 0.65 $ 1.57 $ 2.19 Amortization of intangible assets 0.19 0.25 0.62 0.55 Merger integration items1 0.02 0.04 0.08 0.22 (Gain) loss on sale of assets, impairments and other adjustments2 0.02 (0.04) (0.01) 0.02 Actuarial (gain) loss3 0.21 - 0.44 (0.31) Tax-related items - - (0.02) - Adjusted EPS $ 0.94 $ 0.90 $ 2.68 $ 2.67 Year-over-year growth - Adjusted 4.4% 0.4% Weighted Average Common Shares Outstanding with Dilution 7,356 7,320 7,350 6,630 (000,000) 1Includes combined merger integration items and merger-related interest income and expense, and redemption premiums. 2Includes gains on transactions, natural disaster adjustments and charges, and employee-related and other costs. 3Includes adjustments for actuarial gains or losses (losses of $1.9 billion in the third quarter and $4.0 billion for the first nine months of 2019) associated with our pension benefit plan. As a result, adjusted EPS reflects an expected return on plan assets of $905 million in the third quarter and $2.6 billion for the first nine months (based on an expected return on plan assets of 7.00%), rather than the actual return of $792 million in the quarter and $4.2 billion for the first nine months (actual return of 3.4% for the quarter and 13.4% for the first nine months), included in the GAAP measure of income.

33 CONTENTSConstant Currency

Constant Currency is a non-GAAP financial measure that management uses to evaluate the operating performance of certain international subsidiaries by excluding or otherwise adjusting for the impact of changes in foreign currency exchange rates between comparative periods. We believe constant currency enhances comparison and is useful to investors to evaluate the performance of our business without taking into account the impact of changes to the foreign exchange rates to which our business is subject. To compute our constant currency results, we multiply or divide, as appropriate, our current year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior year average foreign exchange rates. In calculating amounts on a constant currency basis, for our Vrio business unit, we exclude our Venezuela subsidiary in light of the hyperinflationary conditions in Venezuela, which we do not believe are representative of the macroeconomics of the rest of the region in which we operate.

INVESTOR BRIEFING Q3 2019 AT&T EARNINGS DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

CONSTANT CURRENCY Constant Currency is a non-GAAP financial measure that management uses to evaluate the operating performance of certain international subsidiaries by excluding or otherwise adjusting for the impact of changes in foreign currency exchange rates between comparative periods. We believe constant currency enhances comparison and is useful to investors to evaluate the performance of our business without taking into account the impact of changes to the foreign exchange rates to which our business is subject. To compute our constant currency results, we multiply or divide, as appropriate, our current year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior year average foreign exchange rates. In calculating amounts on a constant currency basis, for our Vrio business unit, we exclude our Venezuela subsidiary in light of the hyperinflationary conditions in Venezuela, which we do not believe are representative of the macroeconomics of the rest of the region in which we operate.

Constant Currency Dollars in millions Third Quarter 2019 2018 AT&T Inc. Total Operating Revenues $ 44,588 $ 45,739 Exclude Venezuela (6) (18) Impact of foreign exchange translation 234 - Operating Revenues on Constant Currency Basis 44,816 45,721 Year-over-year growth -2.0%

Adjusted EBITDA 15,079 15,872 Exclude Venezuela 8 13 Impact of foreign exchange translation 85 - Adjusted EBITDA on Constant Currency Basis 15,172 15,885 Year-over-year growth -4.5%

WarnerMedia Segment Total Operating Revenues $ 7,846 $ 8,204 Impact of foreign exchange translation 71 - Warner Media Operating Revenues on Constant Currency Basis 7,917 8,204 Year-over-year growth -3.5%

EBITDA 2,679 2,701 Impact of foreign exchange translation 18 - Warner Media EBITDA on Constant Currency Basis 2,697 2,701 Year-over-year growth -0.1%

EBITDA 105 87 Exclude Venezuela 8 13 Impact of foreign exchange translation 67 - Latin America EBITDA on Constant Currency Basis 180 100 Year-over-year growth 80.0%

Net Debt to Adjusted EBITDA Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and certificates of deposit and time deposits that are greater than 90 days, from the sum of debt maturing within one year and long-term debt. 34 CONTENTS Net Debt to Adjusted EBITDA Dollars in millions Three Months Ended Dec. 31, Mar. 31 June 30, Sept. 30, Four 20181 20191 2019 2019 Quarters Adjusted EBITDA2 $ 15,029 $ 14,802 $ 15,041 $ 15,079 $ 59,951 Add back severance (327) - - - (327) Net Debt Adjusted EBITDA 14,702 14,802 15,041 15,079 59,624 End-of-period current debt 11,608 End-of-period long-term debt 153,568 Total End-of-Period Debt 165,176 Less: Cash and Cash Equivalents 6,588 Net Debt Balance 158,588 Annualized Net Debt to Adjusted EBITDA Ratio 2.66 1 As reported in AT&T's Form 8-K filed January 30, 2019 and April 24, 2019. 2 Includes the purchase accounting reclassification of released content amortization of $545 million in the fourth quarter of 2018, $150 million, $112 million, and $108 million in the first, second and third quarters of 2019, respectively.

Adjusted EBITDA 15,079 15,872 Exclude Venezuela 8 13 Impact of foreign exchange translation 85 - Adjusted EBITDA on Constant Currency Basis 15,172 15,885 Year-over-year growth -4.5%

EBITDA 2,679 2,701 Impact of foreign exchange translation 18 - Warner Media EBITDA on Constant Currency Basis 2,697 2,701 Year-over-year growth -0.1%

Latin America Segment Total Operating Revenues $ 1,730 $ 1,833 Exclude Venezuela (6) (18) Impact of foreign exchange translation 163 - Latin America Operating Revenues on Constant Currency Basis 1,887 1,815 Year-over-year growth 4.0% INVESTOR BRIEFING EBITDA 105 87 Q3 Exclude2019 Venezuela AT&T EARNINGS DISCUSSION8 AND RECONCILIATION13 Impact of foreign exchange translation 67 OF NON-GAAP MEASURES- Latin America EBITDA on Constant Currency Basis 180 100 Year-over-year growth 80.0% NET DEBT TO ADJUSTED EBITDA Net Debt to Adjusted EBITDA Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies andNet managementDebt to EBITDA believesratios theseare measuresnon-GAAP providefinancial relevantmeasures and usefulfrequently informationused toby investorsinvestors andand othercredit usersrating of ouragencies financialand data.management Our Net Debtbelieves to Adjustedthese measures EBITDA ratioprovide is calculatedrelevant andby dividinguseful informationthe Net Debtto byinvestors the sum andof theother most recentusers fourof our quartersfinancial Adjusteddata. Our EBITDA.Net Deb Nett Debtto Adjusted is calculatedEBITDA by subtractingratio is calculated cash andby cashdividing equivalentsthe Net andDebt certificatesby the ofsum depositof the andmost time recentdepositsfour thatquarters are greaterAdjusted than 90EBITDA. days, fromNet theDebt sumis ofcalc debtulated maturingby subtracting within one cashyear andand long-cash termequivalents debt. and certificates of deposit and time deposits that are greater than 90 days, from the sum of debt maturing within one year and long-term debt. Net Debt to Adjusted EBITDA Dollars in millions Three Months Ended Dec. 31, Mar. 31 June 30, Sept. 30, Four 20181 20191 2019 2019 Quarters Adjusted EBITDA2 $ 15,029 $ 14,802 $ 15,041 $ 15,079 $ 59,951 Add back severance (327) - - - (327) Net Debt Adjusted EBITDA 14,702 14,802 15,041 15,079 59,624 End-of-period current debt 11,608 End-of-period long-term debt 153,568 Total End-of-Period Debt 165,176 Less: Cash and Cash Equivalents 6,588 Net Debt Balance 158,588 Annualized Net Debt to Adjusted EBITDA Ratio 2.66 1 As reported in AT&T's Form 8-K filed January 30, 2019 and April 24, 2019. 2 Includes the purchase accounting reclassification of released content amortization of $545 million in the fourth quarter of 2018, $150 million, $112 million, and $108 million in the first, second and third quarters of 2019, respectively.

35 CONTENTS INVESTOR BRIEFING Q3 2019 AT&T EARNINGS DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

SUPPLEMENTAL OPERATIONAL MEASURES We provide a supplemental discussion of our business solutions operations that is calculated by combining our Supplemental Operational Measures Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjustingtable topresentsremove non a-business reconciliationoperations. The of followingour supplementaltable presents a reconciliation Business ofSolutionsour supplemental results.Business Solutions results.

Supplemental Operational Measure Third Quarter September 30, 2019 September 30, 2018 Business Business Business Business Mobility Wireline Adjustments1 Solutions Mobility Wireline Adjustments1 Solutions Operating Revenues Wireless service $ 13,930 $ - $ (11,921) $ 2,009 $ 13,828 $ - $ (11,971) $ 1,857 Strategic and managed services - 3,900 - 3,900 - 3,677 - 3,677 Legacy voice and data services - 2,252 - 2,252 - 2,602 - 2,602 Other services and equipment - 351 - 351 - 404 - 404 Wireless equipment 3,771 - (3,077) 694 3,907 - (3,321) 586 Total Operating Revenues 17,701 6,503 (14,998) 9,206 17,735 6,683 (15,292) 9,126

Operating Expenses Operations and support 9,948 4,022 (8,327) 5,643 10,104 4,022 (8,551) 5,575 EBITDA 7,753 2,481 (6,671) 3,563 7,631 2,661 (6,741) 3,551 Depreciation and amortization 2,011 1,271 (1,709) 1,573 2,057 1,187 (1,759) 1,485 Total Operating Expenses 11,959 5,293 (10,036) 7,216 12,161 5,209 (10,310) 7,060 Operating Income 5,742 1,210 (4,962) 1,990 5,574 1,474 (4,982) 2,066 Equity in Net Income (Loss) of Affiliates - (1) - (1) 1 (3) (1) (3) Operating Contribution $ 5,742 $ 1,209 $ (4,962) $ 1,989 $ 5,575 $ 1,471 $ (4,983) $ 2,063 1 Non-business wireless reported in the Communication segment under the Mobility business unit.

Supplemental Operational Measure Nine-Month Period September 30, 2019 September 30, 2018 Business Business Business Business Mobility Wireline Adjustments1 Solutions Mobility Wireline Adjustments1 Solutions Operating Revenues Wireless service $ 41,383 $ - $ (35,482) $ 5,901 $ 40,594 $ - $ (35,154) $ 5,440 Strategic and managed services - 11,513 - 11,513 - 10,849 - 10,849 Legacy voice and data services - 6,973 - 6,973 - 8,176 - 8,176 Other services and equipment - 1,102 - 1,102 - 1,010 - 1,010 Wireless equipment 10,973 - (9,071) 1,902 11,371 - (9,634) 1,737 Total Operating Revenues 52,356 19,588 (44,553) 27,391 51,965 20,035 (44,788) 27,212

Operating Expenses Operations and support 29,511 12,029 (24,770) 16,770 29,603 12,047 (24,926) 16,724 EBITDA 22,845 7,559 (19,783) 10,621 22,362 7,988 (19,862) 10,488 Depreciation and amortization 6,027 3,735 (5,119) 4,643 6,218 3,520 (5,330) 4,408 Total Operating Expenses 35,538 15,764 (29,889) 21,413 35,821 15,567 (30,256) 21,132 Operating Income 16,818 3,824 (14,664) 5,978 16,144 4,468 (14,532) 6,080 Equity in Net Income (Loss) of Affiliates (1) - 1 - - (2) - (2) Operating Contribution $ 16,817 $ 3,824 $ (14,663) $ 5,978 $ 16,144 $ 4,466 $ (14,532) $ 6,078 1 Non-business wireless reported in the Communication segment under the Mobility business unit.

36 CONTENTS