The Board of Directors of TELEFÓNICA, S.A., at its meeting held on January 31, 2018, and upon favourable report from the Nominating, Compensation and Corporate Governance Committee, has resolved to adopt a new organizational structure. The main changes are: the areas of General Counsel, and Public Affairs and Regulation, up until now led by Mr. Ramiro S nchez de Ler n and Mr. Carlos L pez Blanco respectively, will be unified and headed by Mr. Pablo de Carvajal. Mr. Emilio Gayo will replace Mr. Luis Miguel Gilp rez as Executive Chairman of Telef nica Espa a and member of the Executive Committee of Telef nica, S.A. Telef nica Hispanoam rica, until now headed by Mr. Eduardo Caride (also a member of the Executive Committee), will be split into two new units in order to more effectively manage the different market situations: Telef nica Hispam Sur unit is created (encompassing operations in Argentina, Chile, Peru and Uruguay), which will be led by Mr. Bernardo Quinn (until now Director of Global Human Resources). Telef nica Hispam Norte unit is created (encompassing the operations in Colombia, M xico, Central America, Ecuador and Venezuela), which will be led by Mr. Alfonso G mez Palacio. The area of People (Human Resources) is enhanced and will report directly to the Executive Chairman. This area will be led by Ms. Marta Machicot, who will join the Executive Committee.