Telefonica Deutschland Holding AG · LS:A1J5RX
Telefonica Deutschland — Q4 2015 Earnings Presentation
19 slides from Telefonica Deutschland's earnings presentation, Feb 25, 2016
Slide 1: Telefónica Deutschland Q4 2015 preliminary results & outlook
Creating the Leading Digital Telco Telefónica Deutschland Q4 2015 preliminary results & outlook 25 February 2016 Public – Nicht vertraulich
Slide 2: Disclaimer
Disclaimer This document contains statements that constitute forward-looking statements and expectations about Telefónica Deutschland Holding AG (in the following “the Company” or “Telefónica Deutschland”) that reflect the current views and assumptions of Telefónica Deutschland's management with res
Slide 3: FY 2015: Maintained momentum while delivering integration & financial targets
FY 2015: Maintained momentum while delivering integration & financial targets MSR MSR broadly stable year-on-year Strong partner business performance and continued focus on +0.1% customer base development y-o-y Maintaining momentum with mobile data monetisation OIBDA1 Strong year-on-year OIBDA growt
Slide 4: 2016: Moving the focus from integration to transformation
2016: Moving the focus from integration to transformation Shaping the leading digital ‘onlife’ telco in Germany 1 Drive momentum in an attractive and dynamic telecoms market 2 Shaping the digital transformation for an exceptional customer experience 3 Lean & efficient operations to drive growth in p
Slide 5: Well positioned across all segments & channels in a rational but dynamic market
Well positioned across all segments & channels in a rational but dynamic market Premium ▪ O2 – Our premium brand for mobile & fixed consumer and business customers Own brands Non-Premium ▪ Blau – Our value brand in non-premium, complemented by online brands & those tailored to specific target groups
Slide 6: O2 our premium brand for mobile & fixed consumer and business customers
O2 our premium brand for mobile & fixed consumer and business customers ▪ Digital customer journey ▪ Excellence in customer service with O2 guru concept ▪ New digital shop concept ▪ Network experience ▪ Network integration by mid-16 ▪ At eye level with competition by year-end 2016 ▪ You can do! High
Slide 7: The path to a leading network in Germany
The path to a leading network in Germany Outstanding connectivity & high-speed access in urban & sub-urban areas Targets 2016 TEF D to reach eye level with competition Accelerated LTE 1,800 roll-out for high-speed LTE 800 for coverage Achievements 2015 3G National Roaming & Best-in-class 3G network
Slide 8: Advanced Data Analytics & Internet of Things will complement our core business
Advanced Data Analytics & Internet of Things will complement our core business Advanced Data Analytics Internet of Things Demand and supply tool for network capex optimisation Living trading maps Digital command centre Content solutions ▪ Customer data pool as a key resource ▪ IoT trends are changin
Slide 9: Q4 2015: Continuing trends in MSR; outstanding OIBDA growth on back of synergies & cost optimisation
Q4 2015: Continuing trends in MSR; outstanding OIBDA growth on back of synergies & cost optimisation MSR (Q4 ’15) Rational but dynamic market environment; partner growth and base mix continues to weigh on MSR -1.0% y-o-y FY 2015 guidance met Continued focus on retention activities to develop premium
Slide 10: Partner business showing steady growth amidst continued focus on customer base development; DSL retail strong
Partner business showing steady growth amidst continued focus on customer base development; DSL retail strong Partners with stable contribution Clear focus on developing customer base PO gross adds (abs) / Churn (in %) O2 consumer PO churn O2 consumer postpaid base (in thousand) GA partner brands1 G
Slide 11: Data monetisation opportunity to drive growth
Data monetisation opportunity to drive growth Data traffic rising continuously Network improvement supports usage Traffic (TB/quarter) LTE customers (million) 3.1m 5.1m 6.1m 7.0m 7.9m LTE +10% customers +9% +13% +8% +5% +15% +36% +18% +66% 50,501 +154% Q4 ’14 Q1 ’15 Q2 ’15 Q3 ’15 Q4 ’15 Q4 ’14 Q1 ’1
Slide 12: MSR development in line with expectation
MSR development in line with expectation Revenue structure (in EUR m) Partner share of postpaid MSR increasing Other Hardware MSR from partner business1 (in EUR m) Fixed MSR +1.2% Share of 7,793 7,888 postpaid ~14% ~15% ~16% ~17% revenue 1,138 1,043 -8.3% 1,118 1,300 +16.3% +1% +0.1% 5,528 5,532 201
Slide 13: Strong year-on-year OIBDA growth on the back of synergies and commercial cost optimisation
Strong year-on-year OIBDA growth on the back of synergies and commercial cost optimisation Structure of OIBDA for Jan-Dec 2015 (in EUR m) +1.2% +72.3%1 +20.5%1 y-o-y y-o-y y-o-y 7,888 265 22.9%1 22.3%1 margin margin -2,712 -655 -2,982 1,804 74 1,760 -15 -102 Revenue Other Supplies Personnel Other OI
Slide 14: Financial leverage returned to target while keeping financial flexibility
Financial leverage returned to target while keeping financial flexibility Evolution of Free Cash Flow (FCF)1 YTD December 2015 (in EUR m) 1,804 (102) Working capital movements & adjustments: EUR 29m (1,032) 700 (120) 143 6 1 OIBDA CCA E-Plus CapEx ex. Restructuring Drillisch MBA Other Other FCF1 spe
Slide 15: Cumulated synergies expected to reach >50% of total savings target by year-end 2016
Cumulated synergies expected to reach >50% of total savings target by year-end 2016 Synergy case 2015-2019 (EUR m) Large initiatives in 2016 Opex & Other CapEx 100% Network integration >50% ~35% ~430 Brand migration / IT ~280 ~150 ~800 transformation ~140 ~140 Ongoing workstreams from 2015 Total Cap
Slide 16: 2015 outlook met; 2016 outlook reflects shift in focus from integration to transformation
2015 outlook met; 2016 outlook reflects shift in focus from integration to transformation Baseline Actual 2015** Outlook 2015** Outlook 2016** 2014* (EUR m / y-o-y pct. (y-o-y pct. growth) (y-o-y pct. growth) (EUR m) growth) MSR 5,528 Broadly stable 5,532 / +0.1% Slightly negative to broadly stable
Slide 17: Main takeaways
Main takeaways Mobile data opportunity intact; near-term headwinds as a result of dynamics in non-premium and legacy base mix Successful execution of significant integration activities in 2015; moving focus from integration to transformation with a range of larger projects to follow in 2016 OIBDA wi
Slide 18: Telefónica Deutschland Q4 2015 preliminary results Q&A session
Telefónica Deutschland Q4 2015 preliminary results Q&A session 18 Public – Nicht vertraulich
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