AT&T_Equity Research Report

8/4/2019 AT&T_Equity Research Report

1/11

=!68!6:;;

Fkshd ab DCI Yklxktoab | STZ Sxfgotthd ta

KT)T

OBC"H[XOT_ VHSHKVCM VHZAVT

Sxfgotthd f0

Kbnot Exztk ;:IB':;4

Vxdvk Smkbnkv Cmaudmv ;:IB':?5

Svonkbtm Nxgkv Nabdxvo ;:IB';:?


2/11

KT ) T Obc"

H{xot Vhshkvcm Vhzavt

6

Cabthbts

KT)T"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 3

Cagzkb Zvaiolh0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 3

Iobkbcokl Axtlaan0 Lkthst zxflosmhd {xkvthvl vhzavts -6['6:;;/ """""""""""""""""""""""""""""""""""""""""""""""""""""" 3

Nh Fxsobhsshs0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 4

UOVHLHSS0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 4

UOVHLOBH0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 4

KDYHVTOSOBE SALXTOABS0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 8

ATMHV0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 8

Iobkbcokl Zhviavgkbch0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 9

Nh tvhbds ob Fxsobhss ) Azhvktoabs0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 9

Vhyhbxh Tvhbds0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 9

H}zhbsh Tvhbds0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5

KT)Ts zvazashd kc{xosotoab ai T'Gafolh0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5

KT)T kc{xosotoab ai szhctvxg cabtvallhd f [xklcagg0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" 5

Ogzkcts ai zkst kc{xosotoabs0 -STT, KT)T ghvehv ob 6::9/ """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" =

Cagzhtotoyh Lkbdsckzh0 """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ?

Stkbdklabh yklxktoab0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ;:

Vosn ikctavs0 """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" ;;


3/11

KT ) T Obc"


3

KT)T

Cagzkb Zvaiolh0

KT)T Obc", taehtmhv uotm ots sxfsodokvohs, zvayodhs thlhcaggxbocktoab shvyochs ta cabsxghvs,

fxsobhsshs, kbd atmhv shvyoch zvayodhvs uavlduodh" KT)T, klabe uotm ots sxfsodokvohs kbdkiiolokths, zvayodhs k ykvoht ai thlhcag shvyochs obclxdobe lackl uovhlhss caggxbocktoabs

shvyoch, labe'dostkbch zmabh shvyoch, uovhlhss kbd dktk caggxbocktoab, vakgobe shvyochs" Ot

klsa zvayodhs Obthvbht kcchss kbd ghsskeobe, OZ fkshd kbd skthlloth thlhyosoab" Tmh cagzkb

os klsa obta shcxvot shvyochs, thlhcaggxbocktoab h{xozghbt shllobe, dovhctav kdyhvtosobe kbd

zxflosmobe"

Ob Kzvol 6:;:, KT)T Obc" sald ots vhgkobobe stknh ai gavh tmkb 5( ob Thcm GkmobdvkLogothd"

Ob @xbh 6:;:, tmh Cagzkb cagzlhthd tmh kc{xosotoab ai uovhlhss ksshts ivagYhvopab Uovhlhss"

Ob @xl 6:;:, tmh Cagzkb doyhsthd ots Ukzavt Maldobes K!S ta Maszotklot ShvyochsZlxs SK"

Ob Kxexst 6:;:, tmh Cagzkb cagzlhthd doyhstotxvh ai Sthvlobe Cagghvch ta OFG" Lkvehst bxgfhv ai tatkl fvakdfkbd cabbhctoabs ob XS uotm iksthst bhtuavn0

Uovhd vhsodhbtokl fvakdfkbd Lkvehst Uo'Io bhtuavn ob XS fkshd ab fvkbdhd kbd azhvkthd matszats Uovhlhss -obclxdobe gafolh fvakdfkbd/

3'Scvhhb obthevktoab stvkthe ta dhloyhv shvyochs kcvass0 Tmh gafolh dhyoch Tmh ZC Tmh TY

Iobkbcokl Axtlaan0 Lkthst zxflosmhd {xkvthvl vhzavts -6['6:;;/

Sklhs vash 6"6( ta $3;"8 folloab, bht obcagh dhclobhd ;:(, kbd hkvbobes zhv smkvh uhvh 9:chbts"

Vhzavthd k 3?( sxveh ob gkveobs dxvobe tmh {xkvthv dvoyhb f k stvabe uovhlhss vhyhbxhevautm kbd sklhs ai sgkvtzmabhs

Gk`av Cabchvb os lass ai h}clxsoyh voemts ta shll Kzzlh Obc"%s oZmabh" KT)T cxt tmh zvoch aitmh aldhv 3ES gadhl ta $4? ta hbtoch cxstaghvs ta stk"

Soeboiockbt obcvhksh ob bht kddotoabs, stvabe sklhs ai fvkbdhd cagzxtobe sxfscvofhvs kbdmoemhv zast'zkod KVZX

Cabtobxaxs obyhstghbt ta xzevkdh ots bhtuavn shvyochs Obtvadxchd ots bhu claxd'fkshd Cabthbt Dhloyhv Bhtuavn -CDB/ zlktiavg" Cabstkbt hiiavts ta hbmkbch ots fvakdfkbd dhzlaghbt kbd moem szhhd obthvbht cabbhctoabs

ob vxvkl kvhk


4/11

KT ) T Obc"


4

Tmh ekob ai 33;,::: cabtvkct xshvs kt KT)T, umocm os shhnobe ta fx T'Gafolh XSK Obc", fhkttmh kyhvkeh hstogkth ai ?9,:::"

Nh Fxsobhsshs0

Ot azhvkths ob iaxv sheghbts0 uovhlhss, umocm zvayodhs fatm uovhlhss yaoch kbd dktk

caggxbocktoabs shvyochs kcvass tmh Xbothd Stkths kbd, tmvaxem vakgobe kevhhghbts, ob

iavhoeb caxbtvohs> uovhlobh, umocm zvayodhs lkbdlobh yaoch kbd dktk caggxbocktoab shvyochs,

KT)T X'Yhvsh TY, moem'szhhd fvakdfkbd kbd yaoch shvyochs -X'Yhvsh/ kbd gkbkehd

bhtuavnobe ta fxsobhss cxstaghvs> kdyhvtosobe salxtoabs, umocm zxflosmhs _hllau kbd Umoth

Zkehs dovhctavohs kbd shlls dovhctav kdyhvtosobe kbd Obthvbht'fkshd kdyhvtosobe kbd lackl

shkvcm, kbd atmhv, umocm zvayodhs vhsxlts ivag cxstaghv obiavgktoab shvyochs kbd kll

cavzavkth kbd atmhv azhvktoabs"

UOVHLHSS0

Uovhlhss cabsosts ai tmh Cagzkbys sxfsodokvy, KT)T Gafolot, umocm azhvkths ks k uovhlhss zvayodhv

ta fatm fxsobhss kbd cabsxghv cxstaghvs"

Tmh Uovhlhss sheghbt zvayodhd kzzva}ogkthl 45( ai tmh sheghbt azhvktobe vhyhbxhsdxvobe tmh hkv hbdhd Dhchgfhv 3;, 6:;:"

Kt Dhchgfhv 3;, 6:;:, tmh Cagzkb mkd gavh tmkb ?8 golloab uovhlhss sxfscvofhvs" Otclkssoiohs ots cxstaghvs ks hotmhv zastzkod, zvhzkod, cabbhcthd dhyoch av vhshllhv"

Ot aiihvs k vkbeh ai uovhlhss yaoch kbd dktk caggxbocktoabs shvyochs, obclxdobe zastzkod kbdzvhzkod shvyoch zlkbs" Ots yaoch shvyoch os aiihvhd ab k cabtvkct fksos iav abh' av tua'hkv

zhvoads, vhihvvhd ta ks zastzkod"

Shvyoch os follhd kbd zvayodhd ab k gabtml fksos kccavdobe ta tmh kzzlockflh vkth zlkbcmashb" Tmh uovhlhss shvyochs obclxdh fksoc lackl uovhlhss caggxbocktoabs shvyoch, labe'

dostkbch shvyoch kbd vakgobe shvyochs"

Vakgobe shvyochs hbkflh sxfscvofhvs ta xtoloph atmhv ckvvohvs bhtuavns umhb tmhy kvhvakgobe axtsodh bhtuavn iaatzvobt"

Tmh Cagzkb shlls k ykvoht ai mkbdshts, uovhlhssl hbkflhd cagzxthvs -sxcm ks bathfaans kbd

tkflhts/ kbd zhvsabkl cagzxthv uovhlhss dktk ckvds gkbxikctxvhd f ykvoaxs sxzzlohvs iav xsh uotmots yaoch kbd dktk shvyochs"

Ot shlls tmvaxem ots cagzkb aubhd av tmvaxem kehbts av tmovd'zkvt vhtkol stavhs" Ot klsa shlls

kcchssavohs, sxcm ks ckvvobe ckshs, mkbds'ivhh dhyochs, fktthvohs, fktthv cmkvehvs kbd atmhv othgs,

ta cabsxghvs, ks uhll ks ta kehbts kbd atmhv tmovd'zkvt dostvofxtavs iav vhsklh"

UOVHLOBH0

Tmh Uovhlobh sxfsodokvohs zvayodh fatm vhtkol kbd umalhsklh caggxbocktoab shvyochs daghstockll

kbd obthvbktoabkll" Tmh Uovhlobh sheghbt zvayodhd kzzva}ogkthl 4?( ai tmh sheghbt azhvktobevhyhbxhs dxvobe 6:;:"


5/11

KT ) T Obc"


8

Tmh Cagzkb doyodhs ots uovhlobh shvyochs obta tmvhh zvadxct'fkshd cktheavohs0 yaoch, dktkkbd atmhv" Yaoch obclxdhs tvkdotoabkl lackl kbd labe'dostkbch shvyoch zvayodhd ta vhtkol

cxstaghvs kbd umalhsklh"

Kt Dhchgfhv 3;, 6:;:, tmh uovhlobh sxfsodokvohs shvyhd kzzva}ogkthl 63 golloab vhtkolcabsxghv kcchss lobhs, ;? golloab vhtkol fxsobhss kcchss lobhs kbd tua golloab umalhsklhkcchss lobhs"

Ot mks k ai obthevkthd yaoch kbd dktk shvyochs, sxcm ks obthevkthd bhtuavn cabbhctoabs, tmktzvayodh cxstaghvs tmh kfolot ta obthevkth kcchss iav tmhov yaoch kbd dktk shvyochs, tmh dktk

cagzabhbt ai umocm os obclxdhd ob tmh dktk cktheav"

Labe dostkbch klsa obclxdhs shvyochs zvayodhd f ckllobe ckvd, ;'=:: shvyochs kbd cabihvhbchckllobe" Tmhsh shvyochs kvh xshd ob k ykvoht ai fxsobhss kzzlocktoabs, obclxdobe sklhs,

vhshvyktoab chbthvs av cxstaghv shvyoch chbthvs"

Tmh Cagzkb zvayodhs dktk shvyochs tmkt vhl ab Obthvbht Zvatacal -OZ/'fkshd thcmbalaekbd dktk shvyochs tmkt vhl ab covcxot'fkshd thcmbalae"

Tmh gkbkehd Uhf'mastobe shvyochs iav fxsobhsshs zvayodh bhtuavn, shvyhv kbd shcxvotobivkstvxctxvh, ks uhll ks fxolt'ob dktk stavkeh kbd obclxdh kzzlocktoab zhviavgkbch

gkbkehghbt, dktkfksh gkbkehghbt, mkvdukvh kbd azhvktobe ssthg gkbkehghbt"

Tmh mastobe shvyochs klsa zvayodh cxstaghvs uotm shcxvh kcchss ta dhtkolhd vhzavtobeobiavgktoab kfaxt tmhov obivkstvxctxvh kbd kzzlocktoabs"

Zkcnht shvyochs cabsost ai dktk bhtuavns xsobe zkcnht suotcmobe kbd tvkbsgossoabthcmbalaeohs, obclxdobe tvkdotoabkl covcxot'fkshd, kbd OZ cabbhctoyot shvyochs"

Moem'szhhd zkcnht shvyochs kvh xshd f hbthvzvosh -lkveh fxsobhss/ cxstaghvs" Hbthvzvoshbhtuavnobe shvyochs zvayodh sxzzavt ivag bhtuavn dhsoeb, ogzlhghbtktoab kbd obstkllktoab

ta abeaobe bhtuavn azhvktoabs kbd gkbkehghbt iav bhtuavns ai ykvobe scklhs"

Shcxvot shvyochs obclxdh fxsobhss cabtobxot kbd dosksthv vhcayhv shvyochs, ks uhll kszvhgosh kbd bhtuavn fkshd shcxvot zvadxcts"

KDYHVTOSOBE SALXTOABS0

Kdyhvtosobe Salxtoabs obclxdhs dovhctav azhvktoabs, umocm zxflosm _hllau kbd Umoth Zkehs

dovhctavohs kbd shll dovhctav kdyhvtosobe kbd Obthvbht'fkshd kdyhvtosobe kbd lackl shkvcm"

Tmh Kdyhvtosobe Salxtoabs sheghbt zvayodhd kzzva}ogkthl 3( ai tatkl sheghbt azhvktobe vhyhbxhs

dxvobe 6:;:" Tmos sheghbt shlls kdyhvtosobe shvyochs tmvaxemaxt tmh Xbothd Stkths, uotm zvobt

dovhctav azhvktoabs zvogkvol cayhvobe ots 66'stkth kvhk"

ATMHV0

Tmh Atmhv sheghbt obclxdhs cxstaghv obiavgktoab shvyochs -sxcm ks azhvktav shvyochs/ kbd

cavzavkth kbd atmhv azhvktoabs"


6/11

KT ) T Obc"


9

Tmh Atmhv sheghbt zvayodhd kzzva}ogkthl ;( ai tatkl sheghbt azhvktobe vhyhbxhs dxvobe 6:;:"

Tmh Cagzkb klsa obclxdhs ob tmos sheghbt tmh h{xot obcagh -lass/ ivag ots obyhstghbts ob Thlgh}

kbd Kghvock Gayol" Ob Kxexst 6:;:, ot sald Sthvlobe Cagghvch Obc" -Sthvlobe/"

Iobkbcokl Zhviavgkbch0

Nh tvhbds ob Fxsobhss ) Azhvktoabs0

Vhyhbxh Tvhbds0

Tmh azhvktobe hbyovabghbt ob 6:;; uoll vhgkob cmkllhbeobe ks uhkn hcabagoc cabdotoabs cabtobxh

kbd cagzhtotoab vhgkobs stvabe"

Dhszoth tmhsh cmkllhbehs, ot os h}zhcthd tmkt Kt)T uoll evau ots azhvktobe vhyhbxhs ob 6:;;, vhilhctobe

cabtobxobe evautm ob uovhlhss dktk kbd OZ'vhlkthd uovhlobh dktk shvyochs obclxdobe X'yhvsh kbdfxsobhss shvyochs"

Tmh zvogkv dvoyhv ai evautm os h}zhcthd ta fh uovhlhss, hszhcokll ob sklhs ai kbd obcvhkshs ob dktk

xskeh ab kdykbchd mkbdshts kbd hghveobe dhyochs -sxcm ks tkflhts, hVhkdhvs kbd gafolh bkyoektoab

dhyochs/"

Kll gk`av cxstaghv cktheavohs kvh h}zhcthd ta smau obcvhksh ob tmhov xsh ai Obthvbht'fkshd

fvakdfkbd!dktk shvyochs" Cabtobxobe dhclobhs ob tvkdotoabkl kcchss lobhs kbd ob zvobt dovhctav

kdyhvtosobe os kbtocozkthd" Umhvh kykolkflh, X'yhvsh shvyochs mkyh zvayhd hiihctoyh ob sthggobe

kcchss lobh lasshs, kbd tmos os h}zhcthd ta cabtobxh ob 6:;;"


7/11

KT ) T Obc"


5

H}zhbsh Tvhbds0

Ta iacxs smkvzl ab cast'cabtval ghksxvhs, obclxdobe kvhks sxcm ks sogzloiobe zvadxct aiihvobes"

Cabtobxh ab'eaobe obotoktoyhs ta ogzvayh cxstaghv shvyoch kbd follobe ta vhkloph tmh stvkthe ai

fxbdlobe shvyochs kbd zvayodobe k sogzlh cxstaghv h}zhvohbch"

6:;; azhvktobe obcagh gkveob os h}zhcthd ta ogzvayh, ks vhyhbxhs ogzvayh" H}zhbshs vhlkthd ta

evautm kvhks ai axv fxsobhss, hszhcokll ob tmh uovhlhss, X'yhvsh kbd stvktheoc fxsobhss shvyochs

kvhks, uoll kzzl sagh zvhssxvh ta azhvktobe obcagh gkveob"

Ob kddotoab, ks tmh cagzkb cagzlhth vhkdobe tmhov Labe'Thvg Hyalxtoab -LTH/ thcmbalae iav ots

obthbdhd xsh, ot uoll ba labehv ckzotkloph obthvhst ab tmos szhctvxg"

KT)Ts zvazashd kc{xosotoab aiT'Gafolh0

Gavh uovhlhss szhctvxg iav h}zkbdobe ots xzcagobe 4E LTH bhtuavn" H}zhct tmh tvkbskctoab ta clash

ob r;6 gabtms, dhzhbds ab tmh vhyohu f Ihdhvkl Caggxbocktoabs Caggossoab -ICC/ kbd

Dhzkvtghbt ai @xstoch -DA@/

KT)T kssxghs ba dhft ivag T'Gafolh av Dhxtscmh Thlhnag" -kctxkl $;8"?F toll 6:;: hbd/ Xbshcxvhd fvodeh lakb ikcolot ivag @Z Gavekb -$6:F ob ;= gabtms/ Stvabe fklkbch smhht ai KT)T> 2$;6F ICI kithv doyodhbd iav zkst 6 hkvs

Thvgs0 -KT)T vkthd F3M, 3vd lauhst obyhstghbt evkdh vktobe, sxstkobs iav ixvtmhv $68F dhft/ Zxvcmksh Zvoch0 $3?F > r5";} T'Gafolhs 6:;: HFOTDK Cksm r 94( KT)T smkvhs r39( -=( stknh ob KT)T> Ossxh ai $;4F smkvhs ta Dhxtscmh Thlhnag/

Cagfobhd Iobkbcokls -6:;: Hbd ioexvhs/

KT)T T'Gafolh Tatkl

Uovhlhss sxfscvofhvs* ?9G 34G ;3:G

Uovhlhss shvyoch vhyhbxhs $83"8F $;="5F $56"6F

Tatkl uovhlhss vhyhbxhs $8="8F $6;"3F $5?"=FUovhlhss shvyoch HFOTDK gkveob 4;( 6?(

Zastzkod KVZX $96"85 $86"::

Tatkl cmxvb :":;3; :":34

* cagfobktoab ta mald 43"49( ai XS Gafolh Sxfscvoztoab -3;":3"6:;;/

KT)T kc{xosotoab ai szhctvxg cabtvallhd f [xklcagg0

Cagzkb h}zhcts tmh ;6GMp ai tmh lauhv 5::GMp D ) H flacn szhctvxg ta zlk k nh valh ob ots 4E

zlkbs" ICC os tknobe k caavdobkthd laan kt tmos zvazasotoab klabe uotm kfayh" Tmh dhkl os h}zhcthd ta

fh clashd f 6bd

mkli ai 6:;;" Zxvcmksh zvoch0 $;"?68F"


8/11

KT ) T Obc"


=

Ogzkcts ai zkst kc{xosotoabs0 -STT, KT)T ghvehv ob 6::9/


9/11

KT ) T Obc"


?

Cagzhtotoyh Lkbdsckzh0

K cagzhtotav cagzkvosab ai XSK Uovhlhss gkvnht smkvhs0

Saxvch0 Obdoea H{xot Vhshkvcm, Cagzkb Dktk

Ot ckb fh obihvvhd ivag tmh kfayh evkzm tmkt tmh cagzhtotoyhbhss ob tmos shctav os fhcagobe

obhiihctoyh ks gavh tmkb =:( ai tmh gkvnht smkvh fhobe cabchbtvkthd uotm taz 4 zlkhvs"

KT ) T os tmh 6bd lkvehst zlkhv ob tmh thlhcaggxbocktoabs obdxstv ai XSK uotm 36( gkvnht smkvh, ot

os abl k sthz kuk ivag sxvzkssobe Yhvopab kbd fhcagobe tmh lhkdobe gkvnht zlkhv abch ots

zvazashd $3?fb kc{xosotoab ai T'Gafolh ehts vhexlktav bad"

Kc{xosotoab uoll zvayodh KT ) T tmh vh{xovhd szhctvxg bhhdhd ta keevhssoyhl vall'axt LTH fkshd 4E

shvyochs" Fheobbobe uotm Ktlkbtk, Cmockea, Dkllks, Maxstab kbd Skb Kbtaboa, ot zlkbs ta szvhkd ots

shvyochs kcvass ;8 gkvnhts ta vhkcm 5: golloab Kghvockbs f lkth 6:;;" F 6:;3, KT)T obthbds ta

h}thbd ots 4E bhtuavn ta ?5( ai XS zazxlktoab"

Vhgaykl ai cxstaghv cmhcns kbd aiihvobe xblogothd zvh'zkod zlkbs uotm cvhdot ikcolotohs,tkvehtobe axtm cxstaghvs mks zasotoabhd Lhkz Uovhlhss ks k bocmh zlkhv kbd obdovhctl

cagzhth uotm KT)T"

K fksnht ai sxf'fvkbds Szvobt, Bh}thl, Faast Gafolh, Yoveob Gafolh kbd Kssxvkbch Uovhlhsssxf'fvkbds gknhs Szvobt Bh}thl k stvabe cagzhtotav ob fatm uovhlhss kbd uovhlobh sheghbts"Mauhyhv, ot mks fhhb soeboiockbtl lasobe axt cxstaghvs vhchbtl"

K iacxshd kzzvakcm ab tkvehtobe dhbshl zazxlkthd xvfkb axtm ) gobavot zvh'zkodsheghbts os zvayobe uavtm iav GhtvaZCS, tmaxem tmh cagzkb lkcns tmh scklh ai KT)T av

Yhvopab, ot bhhd bat vhl ab gkssoyh ckzotkl h}zhbdotxvh ) mhlzhd ot ta cagzkvktoyhl moemhv

gkveobs"

Voykls ob tmh 4E szkch0a Tmaxem KT ) T os tmh abl cagzkb tmkt dhloyhvs 4E shvyochs xsobe fatm LTH ) MSZK

thcmbalaeohs, ot os uhll fhmobd ta Yhvopab Uovhlhss ob LTH bhtuavn dhzlaghbt" Tmh

`aobt yhbtxvh fhtuhhb Yhvopab Caggxbocktoabs Obc" -YP/ kbd Yadkiabh Evaxzzlc

-YAD/ mks klvhkd vallhd axt tmh LTH bhtuavn ob ;:6 gkvnhts, vhkcmobe kvaxbd ;9:

golloab cxstaghvs"


10/11

KT ) T Obc"


;:

a 4E shvyochs ai 3vd lkvehst uovhlhss cagzkb Szvobt Bh}thl Cavz" -S/ mkyh klvhkdszkbbhd kcvass 5; X"S" gkvnhts kbd vhkcmhd ;6: golloab zhazlh f 6:;:" Ot os lonhl

ta cayhv ;3: golloab cxstaghvs f tmh hbd ai 6:;;"

Stkbdklabh yklxktoab0

Uh yklxh KT)T xsobe doscaxbthd cksm ilau -DCI/ cabsodhvobe Uhoemthd Cast ai Ckzotkl ks 5":6(

kbd thvgobkl evautm vkth ks ;"8(" Tmh ikov yklxh kzzhkvs ta fh $46"48, k zathbtokl xzsodh ai 49(

fkshd ab ots lkst tvkdhd zvoch ai $6?":9"

Tmh iallauobe kvh tmh xbdhvlobe kssxgztoab xshd ob DCI0

Zkvkghthv Yklxh

Vosn ivhh vkth 4"8:(

Fhtk :"99

H{xot vosn zvhgoxg 8(

Cast ai dhft 9"5:(

Dhft!H{xot 4:"9:(

Tk} vkth 64(

DCI Shbsotoyot Kbklsos f ykvobe UKCC kekobst Thvgobkl Evautm Vkth0

H{xot

YklxhThvgobkl Evautm Vkth

46"39 ;"::( ;"68( ;"8:( ;"58( 6"::(

UKCC

9"?6( 4:";= 4;"4? 46"?3 44"8: 49"64

9"?5( 3?"?3 4;"66 46"93 44";= 48"==

5":6( 3?"9? 4:"?9 46"34 43"=9 48"86

5":5( 3?"44 4:"9? 46":8 43"84 48";=

5";6( 3?"6; 4:"43 4;"55 43"63 44"=4


11/11

KT ) T Obc"


;;

DCI Shbsotoyot Kbklsos f ykvobe CAES gkveob kekobst Tatkl Vhyhbxh Evautm Vkth0

H{xot

YklxhCAES!-Tatkl Vhyhbxh/ Evautm Vkth

46"39 ';"::( ':"8:( :"::( :"8:( ;"::(

Tatkl

Vhyhbxh

Evautm

Vkth

';"::( 46"=6 38"33 65"=8 6:"39 ;6"=5

':"8:( 86"5: 43"8= 34"49 68"33 ;9"6;

:"::( 94"83 83"44 46"39 3;"65 6:";=

:"8:( 5="94 98"6: 8;"59 3="3; 64"=5

;"::( ?8"4: 5?";8 96"?; 49"99 3:"46

Vosn ikctavs0

K uavshbobe X"S" hcabag uaxld gkeboi axv cxstaghvs kbd sxzzlohvs cxvvhbtiobkbcokl doiiocxltohs kbd caxld gkthvokll kdyhvshl kiihct axv fxsobhss

Kdyhvsh cmkbehs ob ghdockl casts kbd tmh X"S" shcxvotohs gkvnhts kbd obthvhst vkthscaxld gkthvokll obcvhksh axv fhbhiot zlkb casts"

Tmh abeaobe xbchvtkobt ob elafkl iobkbcokl gkvnhts caxld gkthvokll kdyhvshl kiihctaxv kfoloty kbd axv lkvehv cxstaghvs kfoloty ta kcchss ckzotkl bhhdhd ta ixbd fxsobhss

azhvktoabs"

Cmkbehs ob kykolkflh thcmbalae caxld obcvhksh cagzhtotoab kbd axv ckzotkl casts" Cmkbehs ta ihdhvkl, stkth kbd iavhoeb eayhvbghbt vhexlktoabs kbd dhcosoabs ob

vhexlktav zvachhdobes caxld gkthvokll kdyhvshl kiihct xs"

Obcvhksobe cagzhtotoab ob tmh uovhlhss obdxstv caxld kdyhvshl kiihct axv azhvktobevhsxlts"

Obcvhksobe cagzhtotoab ob axv uovhlobh gkvnhts caxld kdyhvshl kiihct uovhlobhazhvktobe gkveobs"

Cabtobxobe evautm ob axv uovhlhss shvyochs uoll dhzhbd ab cabtobxobe kcchss takdh{xkth szhctvxg, dhzlaghbt ai bhu thcmbalae kbd aiihvobe kttvkctoyh shvyochs

ta cxstaghvs"

H{xozghbt ikolxvhs, bktxvkl dosksthvs kbd thvvavost kttkcns gk gkthvokll kdyhvshlkiihct axv azhvktoabs"

Tmh cabtobxhd sxcchss ai axv X'yhvsh shvyochs obotoktoyh uoll dhzhbd ab tmh togobe,h}thbt kbd cast ai dhzlaghbt> tmh dhyhlazghbt ai kttvkctoyh kbd zvaiotkflh shvyoch

aiihvobes> tmh h}thbt ta umocm vhexlktav, ivkbcmosh ihhs kbd fxold'axt vh{xovhghbts

kzzl ta tmos obotoktoyh> kbd tmh kykolkfolot kbd vhlokfolot ai tmh ykvoaxs thcmbalaeohs

vh{xovhd ta zvayodh sxcm aiihvobes"

Xbikyaxvkflh lotoektoab av eayhvbghbtkl obyhstoektoab vhsxlts caxld vh{xovh xs ta zksoeboiockbt kgaxbts av lhkd ta abhvaxs azhvktobe zvachdxvhs"

AT&T_Equity Research Report

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