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The fiber and convergence leader in the North of Spain

Building a national player

May 2019 Disclaimer

This presentation (the "Presentation") has been prepared and is issued by, and is the sole responsibility of Euskaltel, S.A. ("Euskaltel" or "the Company"). For the purposes hereof, the Presentation shall mean and include the slides that follow, any prospective oral presentations of such slides by the Company, as well as any question-and-answer session that may follow that oral presentation and any materials distributed at, or in connection with, any of the above. The information contained in the Presentation has not been independently verified and some of the information is in summary form. No representation or warranty, express or implied, is made by the Euskaltel Group (including Euskaltel, S.A., R Cable y Telecomunicaciones Galicia, S.A.U. and Parselaya, S.L.U. and its subsidiaries (Telecable Capital Holding, S.A.U. and Telecable de Asturias S.A.U.)), nor by their directors, officers, employees, representatives or agents as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions expressed herein. None of Euskaltel Group, nor their respective directors, officers, employees, representatives or agents shall have any liability whatsoever (in negligence or otherwise) for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of the Presentation or its contents or otherwise arising in connection with the Presentation, save with respect to any liability for fraud, and expressly disclaim any and all liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in connection with the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements contained in the Presentation. Euskaltel cautions that this Presentation contains forward looking statements with respect to the business, financial condition, results of operations, strategy, plans and objectives of the Euskaltel Group. The words "believe", " expect", " anticipate", "intends", " estimate", "forecast", "project", "will", "may", "should" and similar expressions identify forward-looking statements. Other forward-looking statements can be identified from the context in which they are made. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a certain number of risks, uncertainties and other important factors, including those published in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (“CNMV”) and available to the public both in Euskaltel’s website (www.euskaltel.com) and in the CNMV’s website (www.cnmv.es), as well as other risk factors currently unknown or not foreseeable, which may be beyond Euskaltel’s control, could adversely affect our business and financial performance and cause actual developments and results to differ materially from those implied in the forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. The information contained in the Presentation, including but not limited to forward-looking statements, is provided as of the date hereof and is not intended to give any assurances as to future results. No person is under any obligation to update, complete, revise or keep current the information contained in the Presentation, whether as a result of new information, future events or results or otherwise. The information contained in the Presentation may be subject to change without notice and must not be relied upon for any purpose. Market and competitive position data in the Presentation have generally been obtained from industry publications and surveys or studies conducted by third-party sources. There are limitations with respect to the availability, accuracy, completeness and comparability of such data. Euskaltel has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in the Presentation regarding the market and competitive position data are based on the internal analyses of Euskaltel, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent source and there can be no assurance that the assumptions or estimates are accurate. Accordingly, no undue reliance should be placed on any of the industry, market or Euskaltel’s competitive position data contained in the Presentation. You may wish to seek independent and professional advice and conduct your own independent investigation and analysis of the information contained in this Presentation and of the business, operations, financial condition, prospects, status and affairs of the Euskaltel Group. Euskaltel is not nor can it be held responsible for the use, valuations, opinions, expectations or decisions which might be adopted by third parties following the publication of this Presentation. No one should purchase or subscribe for any securities in the Company on the basis of this Presentation. This Presentation does not constitute or form part of, and should not be construed as, (i) an offer, solicitation or invitation to subscribe for, sell or issue, underwrite or otherwise acquire any securities, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract or commitment whatsoever with respect to any securities; or (ii) any form of financial opinion, recommendation or investment advice with respect to any securities. The distribution of this Presentation in certain jurisdictions may be restricted by law. Recipients of this Presentation should inform themselves about and observe such restrictions. Euskaltel disclaims any liability for the distribution of this Presentation by any of its recipients. By receiving or accessing to this Presentation you accept and agree to be bound by the foregoing terms, conditions and restrictions.

2 The leading platform in the north of Spain

Geographical complementarity Key metrics

Subs1: 153k Homes Subs1: 284k Addressable Population2: 1.0m 1 passed Subscribers Wi-Fi spots Population2: 2.7m Subs : 350k market Population2: 2.2m (inhabitants) (000’) ~ 780k > 400k ~ 6m ~ 2,300

35% 65% 54% 37% 79% 44% 1 Market position (in respective regions) 27% 34% 83% Total group: c.790k subs

Mobile penetration Broadband mkt Pay TV mkt Key achievements (2017) share (2017) share (2017) From a single region company Consistently leading market position in our regions to a multi-region platform

Shareholder Value-accretive remuneration M&A delivered 2010 2 1 1 43 initiated

Sector-top 4 Financial Now 2 1 1 3 operating and discipline financial metrics preserved Source INE, CNMC, Company internal estimates maintained Notes: 1. Total subscribers (Residential + business) figures as of Dec-17 2. 2016 data from INE 3 3. 3rd operator in the Basque country 4. 4th operator in Asturias and 2nd in the Basque Country We have built a 2x larger business since IPO

Subscribers (‘000) EBITDA1 (€m) OpCF2 (€m)

Mobile penetration (%) EBITDA margin (%) As % of revenue (%)

53% 77% 49% 48% 35% 31%

>2x >2x ~2x

216 777 341

113 348 156

IPO 2017 IPO 2017 IPO 2017

Notes 1. EBITDA adjusted for management fees, M&A expenses, transaction bonuses and other extraordinary items 2. Throughout the presentation, OpCF defined as (EBITDA – capex) 4 Strong operational and financial profile while doubling size

IPO Statutory figures FY2015 FY2016 FY2017 (Mar-15)

3P / 4P (%) 57.6% 63.3% 65.8% 68.0%

KPIs Mobility (%)1 53.3% 71.7% 77.2% 77.1%

ARPU (€)2 €55.7 €56.0 €58.4 €60.0

EBITDA (€m) €156m €167m €281m €307m

EBITDA Margin (%) 48.7% 47.8% 49.0% 49.3%

OpCF (€m) €113m €114m €185m €198m Financial OpCF margin (%) 35.1% 32.6% 32.2% 31.8% statements Net income3 (€m) €37m €7m €62m €50m

EPS3 (€) €0.29 €0.13 €0.72 €0.28

Eq. CF per share3 (€) €0.694 €0.23 €0.87 €0.56

Notes: 1. Mobile penetration as a percentage of fixed-line customers 2. For the residential segment 3. Statutory figures including extraordinary and non-recurrent elements 4. EqCF per share at IPO calculated as of 31-Dec-2014 5 Strategic milestones

Initial Public Offering Acquisition of R Cable Platform creation Growth and efficiency Jul-15 Nov-15 Jul-17 2022

Successful IPO of the first Transformational transaction in Acquisition of the remaining Best customer experience 1 1 1 Spanish cable company in Euskaltel history 1 independent regional cable 1 while maintaining our history business leadership in residential Fully consistent with consolidation 2 strategy 2 Back to growth in B2B

Highly value accretive with cash flow Largest independent Support of highly reputed 3 impact over 20% convergent cable platform in 2 institutional investors 2 Spain Targeted expansion to boost 3 Synergies delivered on time and growth 4 revised upwards

Support from institutional equity and International expertise with the Simplification, platform Strong after market 5 debt investors (€255m equity raising incorporation of Zegona’s and 4 3 3 integration and digitalisation performance of the stock and €900m debt raising) Jon James’

TARGETS

Note 6 1. On a Spanish stock exchange The regional integrated telecommunication champion

1 Undisputed leading fiber and convergence operator in the Basque Country, Galicia and Asturias

7 2 State-of-the-art fiber Strong and experienced network fully invested, providing management team supported by best-in-class service and anchor shareholder base acting as an entry barrier

6 3

Best-in-class margins and cash flow Best customer experience while generation underpinned by a maintaining our leadership in prudent financial policy residential

5 4

Targeted expansion to boost growth Back to growth in B2B

7 1 Undisputed leading operator…

Basque Country Galicia Asturias

Market Share Market Share(1) Market Share

2 1 1 2 1 1 1 1 2 1 1 4

68% 46% 36% 38% 39% 39% 28% 29% 30% 31%

Residential 20% 16%

Market Share Market Share(1) Market Share(2)

2 2 1 4 2 2 2 56%

35% 33% 35%

23% 27% Business 12%

(1) SoHo SMEs & Large Accounts Fixed

Source: Company estimates and CNMC data. Market share in their respective footprints. (1) Ranking based on market share over cabled areas (2) 2016 data for all segments and region, except B2B Telecable which accounts for 2015 8 1 …on the back of a fully convergent offering

Residential Segment

Successful migration towards 3P/4P… … driving an increase in value per customer

RGUs ARPU (€) (proforma for Telecable acquisition) 3.04x /Sub 3.29x 3.43x 3.52x

60.7 68% 65% 67% 59.4 59%

28% 26% 31% 56.9 36% 55.3

42% 34% 39% 24%

2014 2015 2016 2017 2014 2015 2016 2017 4P 3P

9 2 Fully invested network - Best-in-class fiber network

Coverage 87% 55% 72% 35% 39% 61% 36%(1) 81% 47% (%HH)

% of EuroDOCSIS 3.1 100% 100% 100% c.50%(2) 50% 100%(2) c.96%(2) 100%(2) 100%

Access capacity 862 862 862 862 862 600(3) 862 750 862 (MHz)

Households c.500 c.280 c.585 n.a. c.580 c.580 c.450 n.a. c.500 per node (avg.)

Fully-owned backbone network ✓        

4G license       ✓ ✓ ✓ via SFR via BASE via Optimus

Future-proofed network supports success-based capex and 17% capex over revenues as medium term target

Source: Company filings. (1) In Core regions (as defined by Telecolumbus). (2) EuroDOCSIS 3.0

10 2 Fully invested network - Euskaltel network vs. FTTH challenge

Symmetry not a threat and… … capacity addressed through targeted upgrades

Broadband traffic evolution since 2014 (Upload vs Download) Roadmap 90

80 Before Now Future

70 Gbps FTTH +177% in greenfield 1 60 GB 150 50 Mbps DOCSIS 350 3.1 40 Mbps Phase 2 50 in current 30 Mbps footprint

20 -8% Downstream DOCSIS Capacity 10 DOCSIS 3.1 Upstream 3.0 Phase 1 Capacity - Jan-15 Sep-15 May-16 Jan-17 Oct-17 Coverage: 87% of HH Coverage: 52% of HH Coverage: 73% of HH Weekly average download Weekly average upload Previous year - Weekly average download Previous year - Weekly average upload

11 3 Residential segment | Lifetime value of customers

Unrivalled coverage with the Highly attractive and competitive The most complete and innovative fastest broadband offering mobility proposition TV proposition High-quality and comprehensive content The speed leader with the only ultra-fast Full-service, leading MVNO broadband offering across the entire region offering covering different customer groups’ (100% DOCSIS 3.1 network) needs with possibility of adding premium channels Competitive and innovative tariffs to address Superior fiber coverage in the Basque real customer needs Country, Galicia and Asturias (2.2m homes passed) OTT platform: Largest WiFi network in the Basque Country, Ongoing expansion plan to new territories Galicia and Asturias with more than 400k hotspots allowing for data for clients First hybrid 4K/UHD set top box in Spain Wide offering of commercial speeds, ranging from 50Mbps to 350Mbps

Competitive prices offering best value Enhanced offering providing a superior and for money and superior service to competitors differentiated user experience (PVR, VoD, TV Everywhere)

Increased penetration of superior quality services (HD, catch-up TV, VOD, network PVR, start over, time shift...)

FY 2017 RGUs: 915k (1) FY 2017 RGUs: 489k (1) FY 2017 RGUs: 393k (1) (77.1% penetration over fixed customers)

Convergent offer with a leading value proposition focused on the lifetime value of the client

(1) Pro-forma for Telecable acquisition 12 3 High valuable, longstanding customer base and best-in-class brand perception

120 Distribution of our customer base within High valuable customer base Brand preference2 our ARPU bands1

Broadband customer base by speed (%) 100 11% 22% 55% 45% 80 63% 63% K Op.1 Op.2 Op.3 Op.4

60 26% 15% Base Dec-16 Base Dec-17 ARPU: 40 <=50MB >50MB <=200MB >200MB €59.91 Mobile customer base by Gb (%) R Op.1 Op.2 Op.3 Op.4

0 < 10 10 - 20 - 30 - 40 - 50 - 60 - 70 - 80 - 90 - >

20 30 40 50 60 70 80 90 100 100 Dec-16 Dec-17 T Op.1 Op.2 Op.3 Op.4 €/month

ARPU ARPU “More for more” strategy providing Brand awareness, consideration and value to the customers preference above peers

Note 1. ARPU as of 4Q 2017 of the combined entity (Euskaltel + R Cable + Telecable) 13 2. GFK study (period of study 2018) 4 Back to growth in B2B

Diversified through significant B2B(1) presence… … based on strong and unique positioning pillars

Business revenues as a % of total revenues (2)

PF1 27% Strong and local brand

2 27% High technical capabilities in their respective footprint

3 21% Fully oriented offering based on addressing specific customer needs by sector and client

4 12%

Tailor made and complex solutions

5 6%

Dedicated sales force and customer care to deliver

6 5% best results and services

Clear strategy to leverage superior infrastructure, brand and customer service to win in Business

Sources: Company filings. (1) % of B2B revenues over total revenues as of 1H-17 LTM revenues (2) Pro-forma for Telecable acquisition 14 5 Targeted expansion to boost growth

Market shares across all segments to be balanced Pillars of the expansion strategy

Cantabria 1 Disciplined Navarre Cataluña Leon

La Rioja 2 Value-accretive

3 Fast time-to-market

4 Ability to leverage brand equity Canary Islands (Spain)

Current presence Potential expansion areas 5 Consistent with overall strategy

Expansion plan will add c. 700,000 - 1,000,000 households 15 5 A two-fold approach

Two-fold strategy Key details of the agreement with Orange

Infill projects New regions Framework agreement with national operator with ✓ access to their 10 million footprint

Flexible agreement in terms of: Economics: Indirect ✓ (opex) vs. co- investment (capex) Products and services Agreement with Orange Agreement with Orange (mutualised / indirect access model) Targeted deployment (FTTH – HFC) Support from regional governments Fast time-to-market ✓ Symmetric and up to 1 GB Limited competition in targeted areas Well-defined commercial plan

✓ ICX services included

5 year roll out plan 100,000 residential premises Break-even in 2-3 years No difference in customer 6,200 enterprises ✓ Project IRR > 15% experience

16 6 Resilient top line across business segments

Proforma revenue evolution Revenue outlook

✓ Stable - Low single digit revenue growth (€3.5m) / (0.5%) TARGET €9.3m +€5.9m / +0.8% growth 2022 Residential revenue without margin1 800.0 Stable net subscriber evolution preserving current market share 715.2 710.5 707.0 Target churn below 14% amid implementation of specific measures in Galicia and Asturias 44.4 36.9 37.0 ARPU growth linked to attractive value proposals Increase 3P&4P penetration in existing customer base 202.2 191.8 206.0 New services will include Mainly due to loss of Increase mobile offering and penetration in Asturias Basque Improved TV functionalities and 4K Deco country government New products penetration: Home connectivity, on-street contract Wi-Fi… Revenue of new regions to amount for 8% of total revenue by 2022 Around 10-15% subscriber penetration over targeted new regions 460.0 476.1 478.3

Business

SoHo will mirror similar trends than residential

Renewed commercial push in SMEs and LA targeting to drive superior 2015 2016 2017 growth rates than residential over the medium term

Residential Business Wholesale and other Penetration of hybrid-cloud, security, big data and alliances

Adjusted for revenue without margin Growth YoY (%) Targeted commercial offering in new expansion areas

Source Company information Note: 17 1. Change of accounting method in 2016: revenue without margin no longer accounted for (2015 revenue without margin included in €713m revenue at €9.3m) 6 Strong focus on efficiencies to improve cost structure

Proforma EBITDA (€m)

EBITDA margin (%) TARGET ✓ TV strategy focused on functionality and customer experience with 2022 disciplined approach to new content investment 50.0% 48.3% 48.2% 46.7% Sufficient data allowances under current host agreements to 47.3% ✓ mitigate ITX costs growth 400.0

345.3 331.7 341.0

✓ Unified organisation leading to leaner and more flexible operations

Systems integration, network management and talent management ✓ driving structure optimization

✓ Integration synergies and structure optimisation driving EBITDA margin c.50% in the medium term 2015 2016 2017

EBITDA margin Adjusted for revenue without margin

18 6 Stable capex with future spending linked to commercial success and expansion plan

Proforma capex Capex breakdown and outlook

Capex (as a % of sales) TARGET 2022 Business as usual 18.5% capex < 17% revenue 16.9% 17.7% <17%

131.7 121.1 124.9

Business integration €20m - €25m and strategic projects investments (2018 - 2019 accum.)

Footprint expansion €20m (excluding SAC) investments (2018 – 2019 accum.)

2015 2016 2017

Recurrent capex to remain in the 16-17% revenue range once platform Business as usual capex expected to remain below 17% of ✓ integration has concluded ✓ revenue

Additional extraordinary capex to be incurred in 2018-2019 ✓ period corresponding to business integration, strategic projects Source Company information and footprint expansion investments 19 6 Rapid deleveraging, supported by best in class EBITDA and cash conversion

Strong EBITDA performance with remaining future upside… + Historical Operational FCF generation

EBITDA margin (%)(1)

48% 48% 48% 46% As % of EBITDA 59% 67% 64% 66% 63% 37% 34% As % of Sales 28% 33% 32% 33% 31% 106 94 82 91 92

K + R + T Liberty Global Com Hem Telenet Nos Numericable

PF 2H 15 1H 16 2H 16 1H 17 2H 17

…driving superior cash flow conversion Historical Net Debt and Net Debt/EBITDA(3)

OpFCF conversion(2) and as % of Sales(1)

31% 30% 22% 18% 12% 13%

4.8x 64% 63% 4.2x c.4.5x 48% 37% 35% 35% 1,606 1,385 1,307 2.6x 1,223 1,185

417 1 2 3 4 5 6 PF 1H 15 2015 1H 16 2016 1H 17 2017

Note: Company data (1) 1H-17 LTM numbers 20 (2) OpFCF = EBITDA-CAPEX (3) Leverage shown including synergies. Excluding synergies, leverage equal to 5.1x and 4.7x at R Cable and Telecable closing respectively 6 Strong support from debt and equity capital markets

R Cable Repricing of IPO + acquisition the Commercial Acquisition Debt Pre-IPO Debt + Debt institutional paper1 of Telecable refinancing refinancing refinancing tranche

Total debt Up to €500m €900m €437m €835m (€m) €200m Total equity €250m placed (€m) €840m €255m 4.6x 4.6x 4.6x4.5x 5.5% 4.4x 4.3x

3.5% 3.5% 3.2% 3.1% 3.0% 2.8% 1.5x 2.7x

Dec-14 Jun-15 Nov-15 Sep-16 Jun-17 Jul-17 Current

Average cost of debt Leverage

BB- Oct-15

Aug-17 B1

Source Company information Note: 21 1. Commercial paper issued as of Mar-17 7 Anchor shareholder base

Shareholder structure

Zegona 21.0%

Kutxabank 48.1%

19.9% Corporación Financiera Alba

11.0% Free-float

Board of Directors(1)

VP & Lead Director

Chairman CEO

Proprietary director Executive director Independent director

(1) Proprietary directors in the Board of Directors representing Kutxabank (2), Zegona (1) and Corporación Financiera Alba (1) 22 Conclusion

1 Euskaltel has delivered its ambitious organic and inorganic targets in record-time since the IPO

2 Euskaltel has become a real multi-region platform, deeply rooted in its core markets, but fully prepared to grow and enter new markets

3 We are competing in an evolving scenario that offers new challenges, but also great opportunities

4 We have defined a clear and comprehensive strategy focused on value generation through customer experience, growth and efficiencies, to which the entire organisation is committed

5 The results of the implementation will offer sustained mid/long-term value creation potential to our shareholders

23 1Q2019 Results May 7th, 2019 1Q2019 Results

Disclaimer

25 1Q2019 Results

Situation of our strategic plan |1Q2019. Positive progress in all our pillars

Leading operator in NPS in our +0.8% total B2B revenue yoy markets +4.7% SMEs + LA revenue yoy Reinforced leadership in Customer Growing number of customers in SMEs Satisfaction, specially in customer Best customer Back to and LA for fifth quarter in a row service and technical support experience profitable while growth in B2B Both number of SOHO customers and Sensible positive impact of the maintaining SOHO ARPU stabilized after years of 4K STB in satisfaction and loyalty our leadership declining in residential

R Cable close to end migration of Simplification, Platform In line to meet target of 30k+ the CRM and call center systems integration Targeted customers by year end 2019 Single system platform and new and expansion to In line to meet target of c. €10m CRM still in process digitalisation boost growth revenue by year end 2019 Impact in efficiencies will be relevant by year end 2019

26 1Q2019 Results

Highlight |Expansion plan to boost growth

CUSTOMER GAIN

▪ In line to meet target of 30k customers by year end 2019

ARPU EVOLUTION ▪ ARPU in new areas evolving better than initially expected ▪ ARPU after entry promotions to reach €60 per month

REVENUE EVOLUTION (€m) ▪ In line to meet target of c.€10m expansion revenue by year end 2019

c.30.0

c.10.0

0.9 0.0 0.8

YTD March18 YTD Dec18 YTD March19 YTD Dec19 YTD Dec20

27 1Q2019 Results

Operating review

28 1Q2019 Results

B2C |Positive net adds in the quarter prove the strength of our brands Fixed residential subscribers growth (‘000)

Growth per quarter Growth per month +1.4

+0.6 576.8 +0.2 +1.1 576.8 +0.3 575.7 575.7 575.4 +0.3

EOP 4Q17 Net Adds FY18 EOP 4Q18 Net Adds 1Q19 EOP 1Q19 EOP 4Q18 Net Adds Net Adds Net Adds EOP 1Q19 JAN19 FEB19 MAR19

29 1Q2019 Results

B2C |Becoming more and more convergent RGUs growth (‘000) +84.3

Fixed telephony penetration falling progressively in Spain (CNMC data: penetration of 40.9% in Jan19 vs 41.4% in +12.2 2,408.9 Dec17) +7.2 2,388.0 +3.3 3.7 RGU/sub 3.6 (1.8) +63.3 RGU/sub 2,324.6

3.5 RGU/sub 89.2% 86.8% 73.5% 82.2% 70.3% Fixed telephony Broadband Pay TV Mobile 3P/4P 3 penetration1 penetration1 penetration1 penetration2 penetration (-192bps yoy) (+139bps yoy) (+415bps yoy) (+325bps yoy) (+162bps yoy)

RGUs adds RGUsEOP 4Q17 4Q17 RGUs adds FY18 RGUs 4Q18 Fixed telephony Broadband Pay TV Postpaid mobile RGUs 1Q19 FY18 EOP 4Q18 EOP 1Q19

Note: 1. RGUs as % of total fixed customers 2. Residential mobile subscribers (excluding mobile only) as % of total fixed customers 3. Residential subs as % of total subscribers 30 1Q2019 Results

B2B | Trends improving steadily

Large Accounts SMEs SOHO

SOHO revenue Large Accounts revenue (EURm) (EURm) (4.7%) yoy +4.7% yoy 19.7 20.9

40% 1Q19 B2B REVENUES: 42%

1Q18 2Q18 3Q18 4Q18 1Q19 EUR49.7m 1Q18 2Q18 3Q18 4Q18 1Q19 SOHO KPIs (+0.8% yoy)

Subscribers (‘000) ARPU (€/month) SMEs revenue (EURm) +4.7% yoy 100 100 99 97 97 68,3 68,1 68,2 9.1 67,9 67,8 18%

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

1Q18 2Q18 3Q18 4Q18 1Q19

31 1Q2019 Results

Financial review

32 1Q2019 Results

Top line yoy performance

Total revenue (€m)

(2.8%) ▪ Less ‘wholesale&other’ revenue explained by one-offs: ▪ Tougher comparison base because of IFRS15 application in 1Q18 176.6 171.7 ▪ Sale of subsidiary CINFO 11.0 7.8

49.3 49.7 ▪ Growth in B2B revenue thanks to the success of the new strategy in SMEs and L.A.

Residential revenue evolution yoy (%) • Stability in the residential customer base

1Q18 2Q18 3Q18 4Q18 1Q19 • Revenue coming from expansion -1.8% 116.3 114.1 not relevant yet (less than €1M in -2.4% the quarter) -3.1% -3.3% -3.6% • Competitive pressure impacted residential ARPU evolution

1Q18 1Q19

Residential Business Wholesale & others

33 1Q2019 Results

Top line and EBITDA quarterly performance

Total revenue (€m) EBITDA (€m) and EBITDA margin (% over revenue)

47.7% 47.3% 176.6 170.5 171.7 84.2 83.6 11.0 81.1 9.2 7.8

49.3 46.5 49.7

116.3 114.8 114.1

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

Residential B2B Wholesale &others

34 1Q2019 Results

CAPEX and OpCF1 overview

CAPEX breakdown (€m) and CAPEX over revenue (%) OpCF (€m) and OpCF over revenue (%)

20.2% 70,0 32.4% 19.2% ex – expansion& 29.9% 60,0 integration ex – 34.6 expansion& 33.9 integration

4.8 2.8% 50,0 6.9 3.9% 40,0

30,0 50.3 50.5 48.0 46.5 20,0 34.2

29.8 10,0 27.0

17.4% 0,0 15.3% 1Q18 2Q18 3Q18 4Q18 1Q19

Net Debt (at 31 March 2019) Average Cost of Debt

1Q18 1Q19

Capex ex - expansion&integration Expansion&integration €1,567m 2.58%

Note: 1. OpCF defined as EBITDA-Capex 35

Q&A 1Q2019 Results

Appendix Euskaltel Group 1Q 2019 consolidated results and KPIs

38 1Q2019 Results

Euskaltel Group consolidated - KPIs (i/ii)

Residential Annual Quarterly

KPIs Unit 2017PF 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Homes passed # 2,166,001 2,357,323 2,222,026 2,230,073 2,306,030 2,357,323 2,910,747 Household coverage % 70% 71% 70% 70% 70% 71% - Residential subs # 660,946 658,172 660,758 662,501 657,909 658,172 657,364 o/w fixed services # 575,354 575,664 575,970 578,503 573,648 575,664 576,756 as % of homes passed % 26.6% 26.4% 25.9% 26.7% 26.4% 26.4% 26.3% o/w mobile only subs # 85,592 82,508 84,788 83,998 84,261 82,508 80,608 o/w 1P (%) % 19.5% 18.6% 19.2% 18.7% 19.1% 18.6% 18.2% o/w 2P (%) % 12.5% 11.7% 12.2% 12.0% 11.9% 11.7% 11.5% o/w 3P (%) % 26.3% 22.9% 25.5% 24.8% 24.0% 22.9% 22.1% o/w 4P (%) % 41.7% 46.8% 43.2% 44.5% 45.0% 46.8% 48.2% Total RGUs # 2,324,640 2,387,989 2,349,101 2,381,419 2,363,292 2,387,989 2,408,908 RGUs / sub # 3.5 3.6 3.6 3.6 3.6 3.6 3.7 Residential churn fixed customers % 17.5% 17.0% 15.6% 14.9% 16.6% 17.0% 17.0% Global ARPU fixed customers €/month 60.69 59.93 60.36 60.02 60.13 59.93 59.18 Fixed Voice RGU's # 527,908 516,169 524,758 525,459 516,453 516,169 514,387 as% fixed customers % 91.8% 89.7% 91.1% 90.8% 90.0% 89.7% 89.2% BB RGU's # 488,708 497,135 491,786 496,045 492,732 497,135 500,448 as% fixed customers % 84.9% 86.4% 85.4% 85.7% 85.9% 86.4% 86.8% TV RGU's # 393,356 416,718 399,381 408,252 406,911 416,718 423,871 as% fixed customers % 68.4% 72.4% 69.3% 70.6% 70.9% 72.4% 73.5% Postpaid lines # 914,668 957,967 933,176 951,663 947,196 957,967 970,202 Postpaid customers # 529,459 549,955 539,305 547,636 544,575 549,955 554,485 as% fixed customers (only mobile excluded) % 77.1% 81.2% 78.9% 80.1% 80.2% 81.2% 82.2% Mobile lines / customer # 1.7 1.7 1.7 1.7 1.7 1.7 1.7

SOHO Annual Quarterly

KPIs Unit 2017PF 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Subs # 101,378 97,002 100,038 99,667 98,754 97,002 96,524 o/w 1P (%) % 26.7% 25.7% 26.3% 25.7% 25.8% 25.7% 25.1% o/w 2P (%) % 14.7% 12.6% 14.2% 13.4% 13.1% 12.6% 12.3% o/w 3P (%) % 39.3% 37.9% 38.8% 38.6% 38.4% 37.9% 37.4% o/w 4P (%) % 19.4% 23.8% 20.7% 22.2% 22.7% 23.8% 25.2% Total RGUs # 353,641 349,028 352,206 355,535 352,723 349,028 350,579 RGUs / sub # 3.5 3.6 3.5 3.6 3.6 3.6 3.6 Soho churn fixed customers % 22.3% 20.4% 22.1% 20.7% 20.1% 20.4% 21.4% Global ARPU Fixed customers €/month 69.12 67.84 68.32 68.06 67.90 67.84 68.18

SMEs and Large Accounts Annual Quarterly

KPIs Unit 2017PF 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Customers # 14,670 14,827 14,728 14,785 14,801 14,827 14,960 39 1Q2019 Results

Euskaltel Group consolidated – Consolidated financials (ii/ii)

Selected financial information Annual Quarterly

Unit 2017PF 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Total revenue €m 707.0 691.6 176.6 172.7 171.9 170.5 171.7 Y-o-y change % -1.1% -2.2% 0.4% -2.0% -2.7% -4.3% -2.8% o/w residential €m 478.3 463.4 116.3 115.8 116.5 114.8 114.1 Y-o-y change % 0.4% -3.1% -2.4% -3.1% -3.3% -3.6% -1.8%

o/w Business €m 191.8 189.9 49.3 47.9 46.2 46.5 49.7 Y-o-y change % -5.1% -1.0% 2.5% 0.0% -1.7% -4.7% 0.8%

o/w Wholesale and Other €m 37.0 38.4 11.0 8.9 9.2 9.2 7.8 Y-o-y change % 0.2% 3.8% 26.5% 1.0% 0.8% -10.4% -29.0%

Adjusted EBITDA €m 341.0 336.4 84.2 84.5 84.1 83.6 81.1 Y-o-y change % -1.3% -1.3% 0.3% -0.8% 0.0% -4.6% -3.7% Margin % 48.2% 48.6% 47.7% 49.0% 48.9% 49.0% 47.3%

Capital expenditures €m (124.9) (153.5) (33.9) (34.0) (36.1) (49.4) (34.6) Y-o-y change % 3.1% 22.9% 10.1% 17.4% 34.8% 28.7% 2.0% % total revenues % -17.7% -22.2% -19.2% -19.7% -21.0% -29.0% -20.2%

Operating Free Cash Flow €m 216.1 182.9 50.3 50.5 48.0 34.2 46.5 Y-o-y change % -3.6% -15.3% -5.4% -10.3% -16.3% -30.6% -7.5% % total revenues % 30.6% 26.4% 28.5% 29.3% 27.9% 20.0% 27.1%