2019 Accomplishments

We met or exceeded all of our commitments for the year.

That’s thanks to a lot of good work on your part.

Reducing our debt was our top priority last year, and we achieved our goal of around 2.5x net debt-to-adjusted EBITDA.

We targeted $26 billion in free cash flow for the year and came in at $29 billion.

We more than doubled our goal to generate $6-8 billion from monetizing assets, realizing nearly $18 billion.

Growing wireless service revenues was an important commitment, as well, and again we delivered with revenues up nearly 2% for the full year.

At WarnerMedia, we delivered high-quality, culture-shaping content throughout the year – winning 6 Golden Globe awards (the most of any media company) and receiving 12 Academy Award nominations. We did this while meeting all our synergy goals. And we’re full steam ahead to launch HBO Max in May.

Last year, we committed to stabilize Entertainment Group EBITDA. And we did just that.

And our big news for Latin America is Mexico turned EBITDA positive in the 4^th quarter.

At Xandr, we continued to build our ad-tech platform, and launched Community, a premium video marketplace for buyers and sellers.

Then there’s our network – which finished the year as the best and the fastest¹ in the United States. A lot of hard work and strategic investment over the past 7 years made that possible. Our 5G network now covers 50 million people and we’re on track for nationwide coverage in the 2^nd quarter.

You’ll hear even more about our results from your business leaders later today and in the coming weeks.

Success in 2020

Our success for the new year begins with continuing to invest at top-tier levels into our core businesses.

In doing so, we'll succeed in:

• Continuing our momentum in Mobility, 5G and FirstNet
• Launching HBO Max
• Keeping our popular WarnerMedia linear networks strong and relevant
• Growing our fiber broadband customers and launching AT&T TV
• Growing profitability in Mexico
• Scaling Xandr across our large advertising inventories and with third parties
• Driving operating efficiencies

We’ll also continue to pay down debt and retire shares. By the end of 2022, we plan to have retired 100% of the debt and 70% of the shares we issued to acquire Time Warner.

All of this work ladders up to delivering successfully on our 2020 and 3-year plans and creating significant future value for our shareholders.

Your Commitment

I know we’ll achieve all of this and more in 2020 because I see every day the personal commitment you bring to your work. Thank you for everything you do for our customers and for each other.