2017 FROST & SULLIVAN

Who is Frost & Sullivan?

Frost & Sullivan is a leading 56 year-old market research and consulting �rm that tracks multiple industries including Automotive, Healthcare, Information and Communication Technology, and more. Headquartered in Santa Clara, California, Frost & Sullivan employs 1,800 analysts and has of�ces in over 40 countries.

The Frost & Sullivan Best Practices Awards have identi�ed exemplary achievements within a multitude of industries and functional disciplines for the last 17 years. Frost & Sullivan conducts best practices research to properly identify unrivaled innovation and leadership among companies, products, processes, and executives.

Receiving the Frost & Sullivan Company of the Year Award is a compelling, third-party validation of a company's growth strategy and execution. Telefónica’s Best Practices Award is a very strong indicator to employees, investors, customers, and the public that Telefónica has superior solutions and a viable strategy in the mobile M2M solutions services industry.

What are the Best Practices Awards?

Telefónica México

Why Telefónica México?

“We Accelerate Growth”

BEST PRACTICES RECOGNITION

PRESS STATEMENT

2017 MexicanMobile M2M Solutions ServicesCompany of the Year Award

Based on its best-in-class key differentiators, coverage and portfolio, Telefónica México has earned Frost & Sullivan’s 2017 Company of the Year Award in the mobile M2M solutions services industry.

Telefónica México offers M2M solutions for the retail, manufacturing, transportation, utilities, banking, and healthcare verticals. These companies can use Telefónica’s M2M solutions in various ways, including several telemetry alternatives �eet management, and PoS. In a transforming world in which M2M connectivity is the latest emerging growth opportunity in the mobile communications industry, Telefónica’s unique offer and ecosystem of partners has garnered the company a distinguished place among mobile carriers in Mexico. With focus on the main industry verticals, the company has been expanding its presence across the country.

Best Practices Award Analysis for Telefónica México

To receive the Frost & Sullivan Company of the Year Award, an organization must strive to be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition.

Driving demand, brand strength, and competitive differentiation all play a critical role in delivering unique value to customers. This three-fold focus, however, must ideally be complemented by an equally rigorous focus on visionary innovation to enhance customer value and impact.

Raquel Alcolea CanoSubdirector Marketing B2Braquel.alcolea@telefonica.com+52 (55) 1616 5141 www.telefonica.com

“We Accelerate Growth”

Signi�cance of the Award

Questions?

For the Company of the Year Award, Frost & Sullivan analysts independently evaluated two key factors—Visionary Innovation & Performance and Customer Impact —according to the criteria identi�ed below.

Key Benchmarking Criteria

What is the Company of the Year Award?

2017 FROST & SULLIVAN

Criterion 5

Criterion 1: Addressing Unmet Needs

Financial Performance

Criterion 2: Visionary Scenarios Criterion 3: Implementation Best PracticesCriterion 4: Blue Ocean StrategyCriterion 5:

Criterion 1: Price/Performance ValueCriterion 2: Customer Purchase ExperienceCriterion 3: Customer Ownership ExperienceCriterion 4: Customer Service Experience

: Brand Equity

Visionary Innovation & Performance

Customer Impact

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AND

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AND BRAN

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COMPETITIVE POSITIONINGCOMPETITIVE POSITIONING

Company ofthe Year

Company ofthe Year

The 360-Degree Research Approach

A Company of the Year Award recipient has demonstrated excel lence in growth, innovation, and leadership. These areas serve as the foundation of a company’s future success and prepare it to drive demand, brand strength, and competitive differentiation. Playing a crit ical role in delivering unique value to customers, Company of the Year Award recipients focus rigorously on visionary innovation and on enhancing customer value and impact.

Successful growth strategies are founded on a thorough understanding of market, technical, economic, �nancial, customer, best practices, and demographic analyses.

The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at best-in-class levels.

Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission.