2014 Financial Statements and Highlights

Financial Highlights

Ramping revenue growth

AT&T’s full-year consolidated revenues grew more than 3 percent, adjusting for the sale of Connecticut wireline properties

2014 adjusted revenues

$131.6B

2013: $127.6B

3.1%

Adjusted YOY Growth

Solid business revenue growth

Total 2014 revenues from business customers, including wireless and wireline, were $71.9 billion and grew 4.0 percent, with fourth-quarter revenues up 5.8 percent

Business solutions revenues

$71.9B

2013: $69.1B

4.0%

YOY Growth

Wireline growth drivers top more than $25 billion in annualized revenues

AT&T U‑verse and strategic business services combined for more than $25 billion in annualized revenues by the end of 2014, and both are growing in the double digits, adjusting for the sale of our Connecticut wireline properties

U‑verse

$14.5B

Total Adjusted Revenues

24.8%

Adjusted YOY Growth

Strategic business services

$9.7B

Total Adjusted Revenues

14.4%

Adjusted YOY Growth

Additional Highlights

~45 million total worldwide video subscribers
after DirecTV closes¹

Business customers represented 54.3% out of our total 2014 revenues (wireless & wireline)

We serve 100%
of the fortune 1,000

WIRELESS: STRONG CUSTOMER GROWTH

In 2014, AT&T delivered the company’s best-ever full-year postpaid churn and added nearly twice as many postpaid subscribers as it did in 2013

1.04% best-ever wireless postpaid churn

Postpaid net adds up nearly 2X

Cash from operations >$30B for 8 straight years

FOOTNOTES
¹ Includes AT&T’s 5.9 million U-verse video subscribers as of December 31, 2014 and DIRECTV’s 39.1 million subscribers in the U. S. and Latin America as of September 30, 2014, including subscribers of Sky Mexico, in which DIRECTV holds a minority stake.

Recognition

Industry Leadership

AT&T was named the No. 1 global telecommunications company in FORTUNE’s 2015 Most Admired Companies rankings. AT&T was also the only telecommunications company included among the World’s 50 Most Admired Companies¹

AT&T was named Carrier of the Year at the 2014 Carrier Network Virtualization Summit

AT&T received the Smart Cities Initiative award at the inaugural Total Telecom Internet of Things awards ceremony

The Public Relations Society of America recognized AT&T with the Best of Silver Anvil award, given to AT&T’s It Can Wait no-texting-while-driving program as the industry’s top campaign of 2013

FOOTNOTES
¹ From FORTUNE Magazine, March 1, 2015 ©2015 Time Inc. FORTUNE and The World’s Most Admired Companies^® are registered trademarks of Time Inc. and are used under License. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, AT&T.

Innovation

AT&T was named among the Thomson Reuters 2014 Top 100 Global Innovators

AT&T took home the 2014 gold “Stevie” award for Most Innovative Tech Company of the Year from the American Business Awards

AT&T’s nanocubes data visualization software was recognized with the 2014 gold “Stevie” for Tech Innovation of the Year from the American Business Awards

Mobility

In February 2015, AT&T received two awards from J.D. Power for Wireless Customer Care and Wireless Purchase Experience. The awards are presented twice per year and AT&T has received this honor for Wireless Purchase experience four consecutive times and for Customer Care, AT&T has been honored by J.D. Power three of the last four.

AT&T secured the highest product rating in Gartner’s 2014 “Critical Capabilities for U.S. Wireless Telecom Services” report

AT&T took the top spot for mobility solutions in the 2014 Consumer Goods Technology Readers’ Choice awards. Readers recognized AT&T’s Enhanced Push-to-Talk service and its workforce management features that help businesses better manage their entire teams.

At Home

Frost & Sullivan named AT&T U‑verse:

Leadership of the Year Award for Broadband
Company of the Year for Consumer Communications Services
North American Company of the Year for Multichannel Video — for the third time since 2009

WomenCertified Inc. honored AT&T U‑verse with three Women’s Choice Awards® as “America’s Most Recommended Brand among women for Broadband, Television and Phone Service”

At Work

Gartner gave AT&T the highest score for Overall, Large-Enterprise Unmanaged, Large-Enterprise Managed, Midsize Enterprise, Hybrid Core WAN Network, Branch Office use cases, reflecting 6 out of 6 use cases in its Critical Capabilities for Wireline Telecom Services, U.S. report¹

AT&T was a Leader in the Gartner Magic Quadrant for Network Services, Global within a 12 year span of 11 reports published since 2003²

AT&T is a leader in the Gartner Magic Quadrant for Managed Security Services, Worldwide³

AT&T is a leader in the Gartner Magic Quadrant for Communications Outsourcing and Professional Services⁴

AT&T was named a leader in the Worldwide Managed Security Service Providers MarketScape by IDC⁵

According to an IDC survey, large U.S. enterprises selected AT&T as one of the top service providers that buyers believe can most effectively provide private and/or public infrastructure as a service (IaaS).⁶

FOOTNOTES
¹ Gartner, “Critical Capabilities for Wireline Telecom Services, U.S., Danellie Young/Sorrell Slaymaker, 25 February 2015
² Gartner, “Magic Quadrant for Network Service, Global”, Neil Rickard/Bjarne Munch, 14 January 2015
³ Gartner, “Magic Quadrant for Managed Security Services, Worldwide”, Kelly M. Kavanaugh, 30 December 2014
⁴ Gartner, “Magic Quadrant for Communications Outsourcing and Professional Services”, Christine Tenneson/Eric Goodness/Bjarne Munch, 04 November 2014
⁵ IDC, “MarketScape: Worldwide Managed Security Services 2014 Vendor Assessment,” Christina Richmond, June 2014, #248646
⁶ IDC, “U.S. IT Buyer Survey Shows Outsourcers Bring Strength to Cloud,” David Tapper, May 2014, #248127

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Our People

AT&T placed 17th on the prestigious 2014 Aon Hewitt Top Companies for Leaders® list, up from 22nd in 2013

Among AT&T’s more than 80 awards for diversity and inclusion in 2014, the company was recognized by DiversityInc., with a 10th place ranking among the Top 50 Companies for Diversity and No. 1 ranking for Supplier Diversity

AT&T was one of only 15 companies to receive the Secretary of Defense Employer Support Freedom Award, recognizing companies’ “exceptional support of employees who serve the nation in the National Guard and reserve”

AT&T earned gold for HR Department of the Year at the Best in Biz Awards

Sustainability

AT&T was named to the Civic 50 list of most community-minded companies for the third year in a row

AT&T was included in the FTSE4Good sustainability index for the fifth straight year. The Index is designed to measure the performance of companies demonstrating strong environmental, social and governance practices.

AT&T was named to CR Magazine’s list of the 100 Best Corporate Citizens

Investors/Stockholders

INVESTOR RELATIONS

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