Slide 1: Deutsche Telekom Q2/15 Results
DEUTSCHE TELEKOM Q2/15 Results
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, dep
Slide 3: Review Q2/15
REVIEW Q2/15
Slide 4: Leading European Telco: Key Messages Q2
LEADING European TELCO: KEY MESSAGES Q2 1 Strong growth in revenue, adj. EBITDA and FCF; well on track for our 2015 guidance and our Capital Markets Day targets. We therefore re-iterate our guidance 2 As in Q1, stronger than expected performance in our key KPIs (US net adds, German fiber/ broadband,
Slide 5: H1/15: Financial Highlights
H1/15: Financial Highlights Q2 H1 € MN 2014 2015 Change 2014 2015 Change REVENUE 15,114 17,428 +15.3% 30,008 34,270 +14.2% ADJ. EBITDA 4,429 5,026 +13.5% 8,550 9,600 +12.3% ADJ. NET PROFIT 636 1,078 +69.5% 1,223 2,114 +72.9% NET PROFIT 711 712 +0.1% 2,528 1,499 -40.7% ADJ. EPS (IN €) 0.15 0.24 +60.0
Slide 6: Focus on Transactions: strengthening our core assets
Focus on Transactions: strengthening our core assets SLOVAK TELEKOM MINORITIES Acquisition of 49% government stake for 0.9 billion €1 or 3.8 times Strengthening our European footprint 2014 EBITDA Another example of our prudent approach to M&A Quality asset, consistent with DT strategy (fully
Slide 7: Germany: Revenues continue to grow supported by strong mobile growth
GERMANY: Revenues continue to grow supported by strong mobile growth and stable wholesale revenues REVENUE1 ADJ. EBITDA AND MARGIN (IN %) € mn Mobile Core fixed Wholesale services Others € mn 41.3 41.6 34.9 39.6 39.9 -1.4% +2.1% 2,256 2,324 2,000 2,211 2,224 5,464 5,587 5,723 5,589 5,580 Q2/14 Q3/14
Slide 8: Germany mobile: Telekom continues to outperform market
GERMANY mobile: Telekom continues to outperform market GERMAN MOBILE MARKET SERVICE REVENUE CONTRACT NET ADDS € mn Telefonica Vodafone Telekom 000 Own branded Service providers/MVNOs 432 289 408 275 235 4831 172 197 198 277 236 -0.6% 78 -801 -194 4,594 4,694 4,614 4,532 4,566 -524 1,380 1,424 1,391
Slide 9: Focus German mobile service revenues: healthy trends
Focus german mobile service revenues: healthy trends adjusted for convergence and seasonal volatility REPORTED MOBILE SERVICE REVENUES IMPACT OF CONVERGENCE PRODUCTS1 UNDERLYING GROWTH Q3/14 -0.1% Q3/14 Q3/14 -0.1% Q4/14 +1.8% Q4/14 0.2% Q4/14 2.0% Q1/15 +2.8% Q1/15 0.7% Q1/15 3.5% Q2/15 +0.1% Q2/15
Slide 10: Germany Fixed: highest uptake in broadband since Q1/2012
GERMANY Fixed: highest uptake in broadband since Q1/2012 GERMAN BROADBAND MARKET1 ENTERTAIN CUSTOMERS mn 000 +7k -20k +20k +76k +81k +11.2% 29.2 29.4 29.7 30.0 30.3 Cable DSL Competitors 2,318 2,377 2,442 2,516 2,578 5.5 5.7 5.9 6.1 6.3 11.4 11.4 11.4 11.5 11.5 DT +63 +59 +66 +74 +62 12.4 12.3 12.4
Slide 11: Germany fixed: Broadband revenues start growing
GERMANY fixed: Broadband revenues start growing FIXED NETWORK REVENUES (CORE FIXED)1 BROADBAND REVENUES2 € mn Broadband revenues Other revenues € mn +0.2% Single play revenues 1,277 1,273 1,272 1,273 1,280 259 263 270 277 285 Broadband 3P -2.7% 1,018 1,010 1,002 996 995 Broadband 2P 2,507 2,500 2,50
Slide 12: Focus German total service revenues: H1 down less than 1%
Focus GERMAN total service revenues: H1 down less than 1% – on track for CMD guidance GERMAN TOTAL SERVICE REVENUES1 H1 GROWTH RATE DRIVERS MEDIUM TERM GUIDANCE € mn (2014 – 2018 CAGR) 4,906 4,918 4,926 4,850 4,842 -0.9% Mobile service 1,668 1,699 1,680 Underlying growth 1,677 1,670 +1.5% +1%2 reven
Slide 13: Germany: high speed infrastructure roll-out and IP-migration
germany: high speed infrastructure roll-out and ip-migration INS– STATUS LTE ROLLOUT INS– STATUS FIBER ROLLOUT2 POP +10% Coverage in % 47% Coverage in %1 and millions of 39% 77% 85% households +25% 15.9 19.8 Q2/14 Q2/15 Q2/14 Q2/15 STATUS IP ACCESSES (RETAIL & WHOLESALE) STATUS IP ACCESSES (RETAIL &
Slide 14: TMUS: customer momentum continues
TMUS: customer momentum continues. Net add forecast raised again. Industry leading Financial performance REVENUE AND SERVICE REVENUE NET ADDS US-$ mn +12.6% in 000 Total revenue Total net adds +13.7% Service revenue 1,470 2,345 2,128 1,818 2,072 7.2 5.3 7.4 5.5 8.15.7 7.8 5.7 8.2 6.0 Branded: Q2/14
Slide 15: Focus on TMUS: positive development in key drivers
Focus on TMUS: positive development in key drivers BRANDED POSTPAID PHONE CHURN BAD DEBT EXPENSES & LOSSES FROM FACTORING in % -16bps in % of total revenues -37bps 1.48 1.64 1.73 1.30 1.32 2.28 2.17 2.07 1.84 1.91 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Positive porting ratios
Slide 16: Europe: Revenue transformation continuing as expected
EUROPE: Revenue transformation continuing as expected REVENUE AS REPORTED ORGANIC REVENUE DEVELOPMENT € mn € mn -0.9% -2.7% 3,367 3,222 3,163 3,317 3,106 3,136 3,163 50 9 -38 77 3,136 -59 -65 Q2/14 Cons./ FX Trad. Discont. Mobile Growth Q2/15 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Decons. Telco & business1 r
Slide 17: Europe: Aiming for technology leadership and best customer experience
EUROPE: Aiming for technology leadershiP AND BEST Customer experience IP MIGRATION LTE ROLLOUT IP share of fixed network access lines LTE outdoor pop coverage in mn and % 78.5 +11pp 49.7 32% 43% 60% 38% Q2/14 Q2/15 Q2/14 Q2/15 CUSTOMER BASE1 -0.4% FIBER ROLLOUT mn +5.9% TV Fiber household coverage B
Slide 18: Systems Solutions: Market unit with improved performance
SYSTEMS SOLUTIONS: Market unit with improved performance T-SYSTEMS FINANCIALS REVENUE MARKET UNIT € mn € mn TOTAL REVENUE ADJ. OPEX1 ADJ. EBITDA2 +3.6% Tel-IT OneERP impact2 MU 1,843 1,674 1,678 1,695 1,734 -1.0% +1.3% Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 2,187 2,166 1,957 1,982 288 513 432 248 271 ADJ. EB
Slide 19: Financials: Growth in FCF and Adj. Net income
FINANCIALs: Growth in FCF and Adj. Net income FREE CASH FLOW Q2/151 ADJ. NET INCOME Q2/15 € mn € mn +69.5% +31.1% 1,375 1,078 1,049 690 -378 14 597 -44 -22 45 636 -134 Q2/14 Cash gen. Capex (excl. Interest Q2/15 Q2/14 adj. Financial D&A Taxes Minorities Q2/15 from spectrum) & Other EBITDA result ope
Slide 20: Financials: Balance sheet ratios
FINANCIALS: BALANCE SHEET ratios € BN 30/06/2014 30/09/2014 31/12/2014 31/03/2015 30/06/2015 BALANCE SHEET TOTAL 118.0 125.0 129.4 137.5 135.0 SHAREHOLDERS’ EQUITY 32.5 34.0 34.1 37.0 36.0 NET DEBT 41.4 41.8 42.5 46.3 48.8 NET DEBT/ADJ. EBITDA1 2.4 2.4 2.4 2.6 2.6 EQUITY RATIO 27.5% 27.2% 26.3% 26.9
Slide 21: Executing our strategy
Executing our strategy 1 Leading European Telco: Integrated market leader with superior margins and returns. 2 We strengthen our differentiation by best customer experience and by continuously investing into leading access networks and our transformation programs. 3 We are transforming towards a lea
Slide 22: Conference call with Q&A session
Conference call with q&a Session The conference call will be held on August 6 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET. DT Participants: Tim Höttges (CEO), Thomas Dannenfeldt (CFO), Hannes Wittig (Head of IR) WEBCAST DIAL-IN The link to the webcast will be provided here 20 minutes before the call DE 0
Slide 23: Further questions please contact the IR department
FURTHER QUESTIONS PLEASE CONTACT THE IR DEPARTMENT INVESTOR RELATIONS CONTACT DETAILS Phone +49 228 181 - 8 88 80 E-Mail investor.relations@telekom.de Contact details for all +1 212 301 - 6114 IR representatives: www.telekom.com/ircontacts IR WEBPAGE IR TWITTER ACCOUNT IR YOUTUBE PLAYLIST www.teleko
Slide 24: Thank you!
THANK YOU!