Your Money Matters at AT&T

1. Your Money Matters at AT&T • October 15, 2012 Marty Webb – Vice President – Benefits

2. Agenda • You Matter • AT&T Retirement Benefits • Savings Plan Design and Features • Overview of Your Money Matters • Results and Metrics

3. Components of You Matter

4. AT&T Retirement Benefits by the Numbers Virtually all US based AT&T employees participate in a Pension Plan $56 Billion in Liabilities as of 12/31/2011 617,000 Total Pension Plan Participants (including retirees) 238,000 Active Pension Plan Participants $5 Billion in Pension Benefits Paid in 2011 Savings Pension • $30+ Billion in Assets • 340,000+ Participants with a Balance • 245,000 Employees Eligible to Contribute • $1.2 Billion in Employee Contributions in 2011 • $627 Million in Company Match during the same year • $92,000 Average Participant Balance

5. Savings Plan Design & Features Plan Features Fund Lineup Overview • Auto Enrollment • Auto Escalation • Roth 401(k) Features • 6% of Pay is Matched at 80% • Catch Up Contributions • Auto Rebalance • Twelve Age Based Funds (default investment option) • Four Index Funds • Four Custom Funds (including Stable Value) • AT&T Shares Fund • Self-Directed Brokerage Window

6. Your Money Matters

7. Your Money Matters: Program Launch • Objectives • Improve Employee Education • Increase Employee Engagement • Increase Participation • Maximize Match • Communication Vehicles • Paper mailings • Company website • Emails • Posters & digital signage • Social networking community • Blogs Traditional Media Social Media • Savings basics • Asset allocation • Investing your next dollar • Employee vignettes • Man on the Street Workshops Videos • New employee • Participation • Maximize match • Diversification • Catch-up • Impact of loans • Retirement • Others Targeted Messages

8. Social Media (Intranet) • Over 10,000 community members • Ongoing interaction on variety of financial topics Ben is GREAT

9. Video • Three Employees • Three Stages of Life • One Common Goal

10. 2011 Campaign

11. 2012 Campaign

12. Holistic Experience: Expand and Enhance Your Money Matters in 2012 • Effectively growing the campaign means maximizing four key areas: • Tools: technology used by employees to make and model actions • Design: implementing strategic plan changes or adding new features to create best-in-class benefits • Education: creating and delivering information for participants • Delivery Channels: maximizing the existing channels and developing new mediums

13. Your Money Matters Results Get In! Savings Plan Participation Rates Max Out! % of Participants Maximizing Company Match