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© 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

AT&T Investor Update

4Q13 Earnings Conference Call January 28, 2014

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Q and A

John Stephens Senior Executive Vice President and Chief Financial Officer

Introduction

Agenda

Results

Randall Stephenson Chairman and Chief Executive Officer

2013 Highlights and 2014 Outlook

Susan Johnson Senior Vice President-Investor Relations

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Cautionary Language Concerning Forward-Looking Statements

Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this presentation based on new information or otherwise.

This presentation may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at www.att.com/investor.relations.

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2013 Highlights

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Best-in-class network

Balance sheet strength

$25 billion invested in capital and spectrum

$23 billion returned to shareowners

Pension plan funded

Solid Financial Performance Revenue growth, expanding wireless margins, stable adjusted consolidated margins, 8.2 percent adjusted EPS growth, strong cash generation

Exceeded Project VIP Objectives Nearly 280 million 4G LTE POPs, U-verse expansion and speed upgrades, fiber to business build, GigaPower

Launched New Growth Platforms NetBond cloud alliances with IBM, Microsoft, CSC and Equinix; Digital Life, connected car, mobile payments

Strategic Opportunities Agreement to buy Leap, tower transaction, selling Connecticut wireline asset

Improved Spectrum Position 700 MHz deal, Alltel assets, Aloha licenses, 60+ smaller transactions

*Performance rankings of first in 56 cities and tied for first in 37 cities out of 125 total cities studied, based on second half RootMetrics® RootScore® report for each city in the second half of 2013 of 4 national mobile networks that rely on scores calculated from random samples. Your experiences may vary. The RootMetrics award is not an endorsement of AT&T. Visit rootmetrics.com for more details.

2013: Year of the Network

5

A premier network experience • Highest ranked mobile network performance

according to RootMetrics® in more markets than any other carrier

• No one drops fewer calls than AT&T

• LTE build nearly complete

• More than 5 million new U-verse broadband customer locations since VIP launch – includes more than 1.5 million video locations

• 45 Mbps speeds to nearly two-thirds of U-verse video customer locations

• More than 250,000 new business customer locations reached with fiber

Nearest Competitor

RootMetrics® Ranks AT&T’s Mobile Network Performance Highest in More Markets than Anyone Else AT&T ranked 1st or tied for 1st in combined (call, text, data) performance in 93 of 125 cities tested in the second half of 2013*

56 First

31

37 Tied First

37 Tied First

AT&T

93 out of 125 cities

68 out of 125 cities

All Others

5 out of 125 cities

Leading the Digital Ecosystem Transformation

5

Entertainment U-verse

Health & Wellness

Connected Car

Machine-to-Machine

Payments & Offers

Isis

Integrated Business Solutions

Cloud

Remote control for life

Mobile

Ultra-Fast

Highly Secure

Ubiquitous

Virtualized

IP Network

Integrated IP network and cloud

Video Enablement & Services

Enterprise Security Services

Home Automation Digital Life

6

8.2%

7

2013 2012

2013 Financial Summary

4Q adjusted EPS of $0.53, up 20 percent year over year

• 8.2 percent increase for 2013

Full-year adjusted consolidated revenues up 1.9 percent

Stable adjusted consolidated operating income margin

$23 billion returned to shareowners through dividends and stock buyback

• 366 million shares repurchased in 2013

• 737 million shares repurchased since beginning of 2012

Full-Year Adjusted EPS*

$2.31 $2.50

4Q Adjusted EPS

2013 2012

$0.44

$0.53

20%

Adj. Operating Income Margin*

18.2% 18.0%

4Q13 2013

Reported EPS $1.31 $3.39

Adjustments:

Actuarial gains on benefit plan ($0.89) ($0.88)

Early debt redemption costs $0.07 $0.07

Employee separation charges $0.06 $0.06

AMX sales, tax items and other ($0.02) ($0.14)

Adjusted EPS $0.53 $2.50

* Adjusted for Ad Solutions and significant one-time items.

4Q12 4Q13 4Q12 4Q13 4Q12 4Q13

Wireless Service Revenues Up 4.8 Percent

Wireless Service Revenues ($ in billions)

Total wireless revenues up 4.5 percent

• Service revenues up 4.8 percent

• Data revenues up 16.8 percent

20 consecutive quarters of postpaid ARPU growth

• Total postpaid ARPU up 2.1 percent

• Phone-only postpaid ARPU up 3.9 percent

$18.4 $17.6

Wireless Data Revenues ($ in billions)

$5.7

$4.9

$15.7 $14.9

4.8%

16.8%

4.5%

8

22%

51%

LTE Smartphones % of Total Smartphones

Postpaid Phone ARPU growth

2.5% 3.9%

Equipment Revenue

$2.7 $2.8

Total Wireless Revenues ($ in billions)

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4Q13 4Q12

Record-Low Fourth-Quarter Postpaid Churn

Strength of network continues to drive lower churn • Postpaid churn 1.11 percent, record

4Q low • Total churn 1.43 percent, stable year

over year More than half a million branded smartphone net adds* • 299,000 postpaid smartphones • 230,000 prepaid smartphones More than 800,000 total net adds • Including 440,000 branded tablet net

adds

Total Subscribers (in millions)

107.0 110.4

Postpaid Churn

4Q13 4Q12

1.19% 1.11%

Total Churn

1.42% 1.43%

8 BPS

4Q13 Net Add Summary (in thousands)

Smartphone* Other Total Postpaid 299 267 566 Prepaid 230 (262) (32) Reseller/Conn.Devices - 275 275 Total Net Adds 529 280 809

* Excludes migration of AT&T feature phones

Smartphones Achieve a Record 93 Percent of Postpaid Phone Sales

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Smartphone base up nearly 5 million in 2013 • 1.2 million smartphones added in 4Q • Smartphones 93 percent of phone sales,

77 percent of postpaid phone base • Smartphone data usage per device

up more than 50 percent year over year More than 1.5 million smartphone customers have chosen AT&T Next since launch • More than 1 million, or 15 percent, of

smartphone gross adds and upgrades for the quarter

New Value plans help drive Mobile Share adoption • More than 21 million connections on Mobile

Share, almost a third of postpaid base • 15 percent have converted from

unlimited plans

Smartphones on AT&T Next

4Q12 4Q13

51.9

Postpaid Smartphone Devices (in millions)

47.1 39.4

4Q11

1%

9% 12% 13% 20%

Next % of Smartphone Gross Adds and Upgrades

Aug Dec Sep Oct Nov Jul

11%

More than 1.5 million

% of Postpaid Phone Sales

70% 77%

59%

88% 93%

84%

% of Postpaid Phone Base

Wireless EBITDA Service Margin

2013

39.6%

41.3%

2012

Postpaid Smartphone Sales (in millions)

Wireless Margins Continue to Expand

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2013 EBITDA service margin 41.3 percent with record annual smartphone sales

• Smartphone sales of 27.3 million

• More than half of smartphones LTE capable

Fourth-quarter wireless EBITDA service margin of 37.4 percent

• $5.9 billion in EBITDA, a 35 percent increase year over year

• Continued smartphone penetration

• Fewer upgrades; 8.6 percent of base in the quarter

• Impact of AT&T Next and new upgrade policy

26.9 27.3

38.7%

2011

25.3

Wireline Consumer Revenues Up 2.9 Percent

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Exceptional U-verse gains in 2013 • 630,000 U-verse high speed broadband

net adds in quarter, and a record 2.7 million for full year

• U-verse more than 60 percent of total broadband subscribers

• 45 Mbps to nearly two-thirds of U-verse TV customer locations

• U-verse TV net adds of 194,000 in the quarter, and a remarkable 924,000 for full year

• Record low 4Q U-verse TV churn

• TV Everywhere ramping - 135 channels in-home, 43 out of home

Total U-verse revenues up 28 percent for the quarter • U-verse revenues now 57 percent

of wireline consumer revenues

Total U-verse Subscribers (in millions)

Wireline U-verse Revenues ($ in billions)

$6.7

2012 2013

$9.2

$12.0 Consumer Revenue Growth

2011

0.3%

2.4% 1.9%

U-verse Video Subscribers

5.5

4Q12 4Q13

8.0

10.7

4Q11

3.8 5.5

4.5

U-verse Broadband Subscribers

10.4

7.7

5.2

Strategic Business Services Revenues Accelerate

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Customers migrating to IP and wireless • Strategic business services revenues up

17.4 percent, now more than 25 percent of ABS revenues

• 78,000 business IP broadband gains • Total ABS revenue down 3.4 percent,

service revenue down 2.4 percent Cloud gathering momentum • Leading cloud provider with more than

an Exabyte of virtualized storage • Serving world’s largest companies with

cloud-based solutions • Successful launch of Netbond aligned with

other top cloud providers

VPN market share leader • Best 4Q VPN net adds in four years • Security and IP applications driving

VPN demand

AT&T Business Services (ABS) Strategic Business Services Revenues ($ in billions)

Strategic business services are the next-generation capabilities that lead AT&T’s most advanced solutions — VPNs, Ethernet, cloud, hosting, IP conferencing, VoIP, MIS over Ethernet, U-verse and security services.

$2.2

$1.9

4Q13 4Q12

$1.7

4Q11

Strategic Business Services as % of Total ABS Revenues

18.1%

25.4%

20.9%

ABS Virtual Private Network

Up 17.4% YOY

4Q12 4Q13 1Q13 2Q13 3Q13

8.3% 4.7%

8.5% 11.2% 10.3%

VPN Ports In-Service VPN Revenue Growth

2012

18.2%

Operating Income Margin

12.2%

Consolidated (*Adjusted) Wireline

Consolidated and Wireline Margin Summary

Adjusted consolidated margins stable

• Wireless margin expansion helps offset Project VIP-related pressure

Wireline margin pressured by higher success-based costs

• Record annual U-verse net adds and business-related success-based costs

• Trailing operating costs and higher depreciation expense with Project VIP investment pressure

Project Agile expected to streamline processes and cut costs

2013

18.0%

10.7%

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* Excludes significant one-time items.

Reported Consolidated Operating Margin 10.2% 23.7%

Free cash flow is cash from operations less capital expenditures. Net debt is total debt less cash and cash equivalents. EBITDA is operating income before depreciation and amortization. Numbers may not foot due to rounding.

Strong Cash Flow and Return to Shareowners

Strong cash flow • Strong cash from operations due to

revenue growth and cost initiatives • Solid free cash flow even with

pressure from Project VIP expenditures and popularity of AT&T Next

Opportunistic asset monetization • Tower deal, AMX shares, real estate • Announced Connecticut wireline sale • Strong cash position with improved

leverage Outstanding return to shareowners • Nearly $23 billion in 2013,

both dividends and share buybacks • More than $45 billion in last two years • 30 consecutive years of dividend

increases

Cash From Operations $7.9 $34.8

Dividends Paid $2.4 $9.7

Free Cash Flow $2.5 $13.6

4Q13 AT&T Cash Summary ($ in billions)

Capital Expenditures $5.5 $21.2

Shares Repurchased $1.9 $13.0

Total Returned to Shareowners $4.3 $22.7

4Q13 2013

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Net-Debt-to-adjusted EBITDA 1.73

Cash from Asset Monetization $5.9 $ 7.0

Project VIP – exceeding objectives: network, speed upgrades and capital structure

Solid consolidated revenue growth

Strong cash generation

Opportunistic debt management, net-debt-to-adjusted EBITDA at 1.8x or lower

Share buybacks

Delivered on financial guidance

2013 Accomplishments

• Upper single-digit EPS growth • Continuing strength in wireless service and consumer revenues • Stable consolidated margins with wireless margin expansion • Capex in $21 billion range

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Business Transformation

Product/Revenue Transformation

Project VIP – Network Transformation

Transitioning all products by 2020 • IP • Mobile • Cloud

LTE, U-verse expansion, FTTB Video-first network Virtualized and software-defined network

Project Agile – People and Processes Transformation

Effortless customer interaction Digital first Cost savings from simplification of processes and platforms

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2014 Outlook on Track with Project VIP Plan

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Conservative assumptions Continued slow U.S. economic growth Excludes any impact from future buyback Excludes impact of Leap acquisition

Continued revenue and EPS growth Consolidated revenue growth in the 2 to 3 percent range; adjusted EPS growth in mid-single digits

Stable consolidated margins Continued improvement in wireless margins; Project VIP pressure in wireline

Capex in $21 billion range Peak Project VIP spend plus investments in Agile, Alltel and GigaPower

Free cash flow in $11 billion range and continued asset monetization Single A rating, pension plan funded, solid cash position

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© 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

AT&T Investor Update

4Q13 Earnings Conference Call January 28, 2014