Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Investor Presentation (May 2025)

51 slides from Deutsche Telekom's investor presentation, May 2025

  1. Slide 1: Deutsche Telekom Company Presentation for Investors

    Deutsche Telekom Company Presentation for Investors May 2025

  2. 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

  3. Slide 3: CMD 2024 recap: Selected charts

    CMD 2024 recap Selected charts

  4. Slide 4: Where do we stand

    Where do we stand #1 Global Telco brand +84% Brand value since 20201 ~ €71 bn Total Cash Capex2 2021 – 2024e #1 Leading 5G networks in US, GER & EU > €1.75 Adj. EPS +46% since 2020 > 20 mn Fiber homes passed GER & EU8 +13 mn homes since YE 2020 Customers ~ €43 bn Adj. Core EBITDA AL +31% since 20203

  5. Slide 5: DT Group consistent customer growth over the last 5 years

    DT Group consistent customer growth over the last 5 years TMUS mobile postpaid net adds TMUS broadband net adds mn mn 6.4 6.1 5.5 5.5 5.7 2.0 2.1 1.7 0.5 0.1 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 DT ex US mobile postpaid net adds DT ex US broadband net adds mn mn 2.0 1.9 1.7 0.7 0.7 1.3

  6. Slide 6: DT Group ex US & TMUS financials growth on both sides of the Atlantic

    DT Group ex US & TMUS financials growth on both sides of the Atlantic Organic service revenue growth TMUS Organic core adj. EBITDA growth TMUS in % yoy in % yoy 10.8% 10.1% 9.8% 4.6% 4.9% 8.0% 8.3% 4.1% 4.2% 3.5% 2020 2021 2022 2023 2024 20201 2021 2022 2023 2024 Organic service revenue growth DT ex

  7. Slide 7: Accelerating our flywheel – our ambitions going forward

    Accelerating our flywheel – our ambitions going forward STRONGER FOUNDATION SUPERIOR EXECUTION ACCELERATION VALUE CREATION  Grow US share & strong  Out-invest competition  Data informed, digital first Portfolio with optionality company Unlock additional Market cap:  Next-level quality approach 

  8. Slide 8: Leveraging Fiber to create long-term profitability

    Leveraging Fiber to create long-term profitability INFRA LEADERSHIP IN SMART INVESTMENTS INCUMBENT MARKETS IN NEW MARKETS … … Until 2027e Capturing Fiber Total homes passed BB market shares – Infra view1 Market share opportunity … ~ 17.5 mn2 (2.5 mn p.a.) Competition  best future network ~ 13.5 mn3

  9. Slide 9: 5G: We made it a winning strategy

    5G: We made it a winning strategy MARKET LEADING CUSTOMER DRIVEN … BRINGING MONETIZATION IN 5G TODAY NETWORK EXPERIENCE … TO THE NEXT LEVEL Strong Speed coverage1 leadership2  Modernize NWs  Grow mobile share  Leverage spectrum leadership ~ 98% #1  Fixed-wireless opportunity 3  5G stand alone e

  10. Slide 10: Efficiency: multiple levers for further improvements

    Efficiency: multiple levers for further improvements IDC/Service revenues DT ex US1 Key levers and expected impact going forward Artificial intelligence & ~ -5 pp ~ €0.7 bn4 ~ €1.5 bn2 automation -3–5 pp Network Scaling ~ €0.1 bn Real Estate & Procurement ~ €0.4 bn 2020 2024e 2023 2027e Gross IDC Ot

  11. Slide 11: Set-up for a data-informed, digital-first company

    Set-up for a data-informed, digital-first company… 2. PARTNER ECOSYSTEM  Global Telco AI Alliance  AI RAN R&D partnership (US) with Nvidia, Ericsson & Nokia 3. EXISTING ASSETS  Smart combination of own & partner capabilities  LLM OS foundation & Telco LLM  Common data platform & service fed by:

  12. Slide 12: Accelerate global scale leveraging our unique footprint

    Accelerate global scale leveraging our unique footprint ONE GLOBAL COMMON COMBINED STRATEGY G2M PRODUCTS & PLATFORMS OPERATIONS  Global brand  Common services/  Portfolio & M&A  Moments  Architecture shoring  Common T RDK router incl. customer  Know-how Business identity &   Center(s) of sy

  13. Slide 13: Committed to ambitious environmental and social targets

    Committed to ambitious environmental and social targets CLIMATE CIRCULARITY SOCIAL ≥ -55% in 2030e vs. 2020 100% Similar digital inclusion beneficiaries ≥ -90% in 2040e vs. 2020 Ready for circularity > 80 mn acc.3 around technology & devices in 2030e + Crisis effort in Scope 1–3 emissions  Clear tr

  14. Slide 14: Customer focus translating into strong profitable growth

    Customer focus translating into strong profitable growth GROUP LEVEL KPI AMBITION 2023–2027E KPI DRIVERS Service revenues ~ 4% CAGR Business growth Adj. EBITDA AL 4−6% CAGR Operational leverage Adj. EPS > 11%1 CAGR Growth & capital allocation Cash Capex/Service revenues2 ~ 21% in 2027e Invested for

  15. Slide 15: “Surplus” funds to be used for higher TMUS stake & DT buybacks

    “Surplus” funds to be used for higher TMUS stake & DT buybacks Key determinants of cumulative “Surplus” by 2027e Uses for “Surplus” 4–6% Adj. EBITDA AL CAGR Higher TMUS stake2 Announced TMUS ≤ €2 bn > €15 bn capital allocation1 Additional DT share buybacks ≤ 2.75x leverage  Both uses of surplus are

  16. Slide 16: Creating shareholder returns through growth & capital allocation

    Creating shareholder returns through growth & capital allocation Adj. EPS €/share TOTAL SHAREHOLDER RETURN Further upsides from: > €15 bn “surplus”1  Global scale reinvest Share price  Beyond core  M&A, Portfolio, TMUS €/share ~ 2.5 Further additional capacity upside from 26 possible Earnings re-

  17. Slide 17: Q1 2025 results Group

    Q1 2025 results Group

  18. Slide 18: Q1/25 consistent reliable growth

    Q1/25 consistent reliable growth Q1/2025 Highlights  Market leading customer and financial growth continues: Q1 organic service revenues +3.5%, adj. EBITDA AL +5.3%, FCF AL +52.4%1, adj. EPS +10.8%1  DT ex US organic service revenue growth +2.5%, adj. EBITDA +3.8%  Strong progress with network an

  19. Slide 19: Financials Q1/25 organic

    Financials Q1/25 organic strong organic growth Q1/25 Adj. EBITDA AL US GAAP Core adj. Q1/25 Adj. EBITDA AL by segment1 Q1/25 Key Financials growth yoy, organic EBITDA growth of 8.4% € mn % growth yoy, organic TMUS 6.1% Group revenues 3.8% +€438 mn 2,634 GER Group service revenues 3.5% 2.2% +€58 mn 1

  20. Slide 20: Networks extending our leadership

    Networks extending our leadership FTTH 5G Coverage Fiber homes passed in mn % of POPs GER EU +3.3 20.9 +2pp 17.6 +11pp 97 98 10.4 79 9.4 68 EU 8.2 10.5 GER Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25  Continuing to lead German fiber build  Undisputed German network leadership secured through  5.7 mn MDU

  21. Slide 21: AI and Digital accelerating the digital transformation with AI

    AI and Digital accelerating the digital transformation with AI Digital AI App  Number of active app users: Network IT Sales & Service G&A 15.9 mn users HR: AI-powered chatbot Mobile network: AI RAN IT DevOps: AI coding Customer interaction:  Magenta Moments (“Ask T”) to access to group Guardian Ag

  22. Slide 22: Customer Growth stronger in mobile, weaker in fixed

    Customer Growth stronger in mobile, weaker in fixed Mobile net adds Fixed line net adds2 000 000 1,337 1,220 US (postpaid) Strongest ever Q1 Broadband in postpaid Slowdown due to 95 Germany 61 Q1/24 Q1/25 Q1/24 Q1/25 466 Ex US (contract)1 397 TV Impacted by one- Growth in Germany off in Hungary stab

  23. Slide 23: Society and Environment progress with our ESG ambitions

    Society and Environment progress with our ESG ambitions Societal agenda Environment Environmental agenda Customer satisfaction1  NEW Q1 energy consumption ex US -1% yoy (group +3%) Energy consumption Tri*M  NEW presentation of world’s first DSL router made from old mn MWh 76.2 77.6 smartphone comp

  24. Slide 24: Guidance 2025 guidance raised for adj. EBITDA AL and FCF AL

    Guidance 2025 guidance raised for adj. EBITDA AL and FCF AL Adj. EBITDA AL TM US DT Ex US FCF AL TM US DT Ex US € bn € bn 43.0 ~44.9 ~45.0 ~+4.5% 19.2 ~19.9 ~20.0 ~+4% 28.5 ~29.9 ~30.0 15.9 ~16.3 ~16.4 14.5 15.0 15.0 ~+3.5% 3.51 3.61 3.61 ~+3% FY 2024 pro Original 2025 New guidance FY 2024 pro Origi

  25. Slide 25: Our agenda for 2025 building on the ambitions of the 2024 CMD

    Our agenda for 2025 building on the ambitions of the 2024 CMD Deliver attractive returns Deliver on fiber build while for shareholders stepping up monetization Step up leverage Extend and monetize 5G of group’s unique scale advantages network lead in all markets Aggressively seize A.I. opportunities

  26. Slide 26: Q1 2025 results Review of segments and financials

    Q1 2025 results Review of segments and financials

  27. Slide 27: T-Mobile US industry leading financial growth

    T-Mobile US industry leading financial growth Revenues (IFRS) Adj. EBITDA AL (IFRS)1 Impacted by yoy higher US$ bn US$ bn US GAAP IFRS bridge +6.6% +6.6% 19.6 20.8 7.5 8.0 Other revenues 3.5 3.9 Service revenues 16.1 16.9 Q1/24 Q1/25 Q1/24 Q1/25 Service revenue (US GAAP) Postpaid service Core adj. E

  28. Slide 28: T-Mobile US industry leading customer growth

    T-Mobile US industry leading customer growth 5G EXTENDED RANGE Total postpaid net additions Best ever Q1; 2025 guidance: Postpaid phone net additions mn +5.5 mn - 6.0 mn (unchanged) 000 1.9 865 903 1.6 777 1.2 1.3 1.3 532 495 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 High Speed Int

  29. Slide 29: Germany 34th consecutive quarter of EBITDA growth

    Germany 34th consecutive quarter of EBITDA growth Revenues (reported) Impacted by lower indirect Adj. EBITDA AL (reported) € mn handset revenues; total € mn -1.3% service revenue +1.4% +2.3% 6,298 6,219 2,576 2,634 Q1/24 Q1/25 Q1/24 Q1/25 Revenue growth (organic) Adj. EBITDA AL growth (organic) Impa

  30. Slide 30: Germany service revenues impacted by phasing

    Germany service revenues impacted by phasing Mobile service revenue growth (organic) % yoy 3.4% 3.7% 3.1% 2.1% 2.1% Total service revenue growth (organic) % yoy Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 2.2% 2.1% 1.8% 1.4% Fixed service revenue growth (organic) 0.9% Ongoing headwind from % yoy IT business phasi

  31. Slide 31: Germany fixed revenues: steady growth in broadband and wholesale access

    Germany fixed revenues: steady growth in broadband and wholesale access Broadband revenue growth (organic) Broadband (B2C) % yoy ARPA +3.0% yoy 4.2% 4.0% 3.3% 3.4% 3.2% Fixed service revenues (reported) Broadband € mn Wholesale Access +0.7% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Other 3,870 3,896 1844 1903 +

  32. Slide 32: Germany fixed KPIs: successful upselling continues

    Germany fixed KPIs: successful upselling continues FTTH net adds Retail customers with ≥100 Mbit/s tariff 000 % of customer base 52 51 131 134 128 113 49 94 48 47 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Broadband net adds TV net adds (ex OTT) Additionally ~50k 000 000 OTT TV net

  33. Slide 33: Germany mobile KPIs: strong customer growth in a competitive market

    Germany mobile KPIs: strong customer growth in a competitive market Branded contract net adds1 000 311 327 281 261 274 Mobile service revenues (reported) € mn +3.0% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 1.695 1.645 Churn2 Data usage2 % GB per month Q1/24 Q1/25 +20% yoy  New tariff portfolio with focus on u

  34. Slide 34: Europe 29th consecutive quarter of organic EBITDA growth

    Europe 29th consecutive quarter of organic EBITDA growth Revenues (reported) Adj. EBITDA AL (reported) € mn +3.2% € mn 3,053 +6.7% 2,959 1,069 1,141 Q1/24 Q1/25 Q1/24 Q1/25 Revenue growth (organic) Adj. EBITDA AL growth (organic) % growth yoy % growth yoy 8.9% 8.1% 8.0% 6.8% 7.3% 7.2% 5.7% 4.2% 4.3%

  35. Slide 35: Europe strong commercial performance continues

    Europe strong commercial performance continues Mobile contract net adds1 Sequentially slower in Poland, Broadband net adds 000 Croatia and Austria 000 185 183 193 173 123 77 68 57 52 48 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 FMC net adds TV net adds Impacted by -28k SAT TV 000 0

  36. Slide 36: Systems Solutions growth in order entry, revenue, and profitability

    Systems Solutions growth in order entry, revenue, and profitability Order entry (LTM) Revenues (reported) Adj. EBITDA AL (reported) € bn € mn € mn +12.5% +1.7% 4.2 993 1,009 +4.4% 3.7 77 81 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25  Good growth in order entry and revenue Revenue growth (organic) Adj. EBI

  37. Slide 37: Financials Q1/25 reported strong set of results across the board

    Financials Q1/25 reported strong set of results across the board € mn Q1 2024 2025 Change Revenue 27,942 29,755 +6.5% Service revenues 23,485 24,957 +6.3% Adj. EBITDA AL 10,473 11,297 +7.9% Adj. EBITDA AL (excl. US) 3,541 3,674 +3.8% EPS additionally supported by lower share count. Non- recurring ad

  38. Slide 38: FCF AL and adj. net profit

    FCF AL and adj. net profit strong Q1 FCF AL reflecting EBITDA growth and seasonality in WC Free Cash Flow AL1 Adj. net profit € mn € mn +52.4% 5,650 +9.1% 318 -4 69 -164 -155 838 -120 2,442 1,558 -195 2,238 3,708 Lower Capex in US and Ex US driven by seasonality. Growth in EBITDA and FY expectation

  39. Slide 39: Net debt leverage back in corridor due to strong FCF and f/x

    Net debt leverage back in corridor due to strong FCF and f/x Net debt excl. leases (AL) Leverage ratios € bn X Incl. leases -3.6 99.3 Excl. leases 2.82 2.78 0.8 -5.7 0.4 -2.1 2.63 95.7 2.4 2.31 2.31 0.1 0.4 2.18 Q4/24 FCF AL Spectrum Dividends SBB TM US DT SBB M&A F/X and Q1/25 2023 2024 Q1/25 other

  40. Slide 40: Q1/25 Key messages consistent reliable growth

    Q1/25 Key messages consistent reliable growth  Overall, a solid start into the year Adj. EPS in €/share  Disciplined execution in competitive markets  Strong progress with networks and A.I.-powered digitization  On track for FY25 and CMD 2023–27 guidance in all operations ~2.5  Stake in TMUS at

  41. Slide 41: Q1 2025 results Appendix

    Q1 2025 results Appendix

  42. Slide 42: Organic growth rates

    Organic growth rates In % Q1/25 over Q1/24 FY/24 over FY/23 Group revenues +3.8 +3.3 Group service revenue +3.5 +3.7 Service revenue DT ex US +2.5 +2.9 Group Adj. EBITDA AL +5.3 +6.0 Adj. EBITDA AL DT ex US +3.8 +3.3 Group Core adj. EBITDA AL1 +5.6 +6.5 1 Adj. EBITDA AL excl. TMUS handset leases. In

  43. Slide 43: FCF AL and adj. net profit FY

    FCF AL and adj. net profit FY FCF AL reflecting growth in adj. EBITDA and lower capex in the US Free Cash Flow AL1 Adj. net profit € mn € mn +18.7% +18.3% 19,156 -176 629 -15 443 -597 -16 16,141 2,577 -964 9,397 2,592 7,940 Lower capex in the US Impacted by discounting gain Growth in EBITDA AL on th

  44. Slide 44: TMUS EBITDA reconciliation

    TMUS EBITDA reconciliation FY/24 Q1/25 US$ mn US$ mn +9.1% yoy +8.3% yoy +8.1% yoy 31,771 31,864 +8.4% yoy +7.9% yoy +6.6% yoy 93 -971 30,893 8,258 8,259 8,022 1 -237 Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA Adj. Core Leasing Adj. EBITDA Bridge Adj. EBITDA EBITDA Revenues (US GAAP) AL (IFRS)

  45. Slide 45: FCF AL excl. US well on track for FY guidance

    FCF AL excl. US1 well on track for FY guidance € bn Q1 2024 Q1 2025 Adj. EBITDA 3.9 4.0 Leasing opex -0.4 -0.3 Adj. EBITDA AL 3.5 3.7 Cash Capex -2.2 -2.0 Proceeds from sale of fixed assets +0.0 +0.0 Special Factors Cash -0.3 -0.3 Interest ex leasing -0.2 -0.3 Cash Taxes -0.3 -0.1 Other (working cap

  46. Slide 46: Financials maturity profile covered by strong liquidity reserve

    Financials maturity profile covered by strong liquidity reserve Ex US debt maturing Ex US liquidity position Credit lines € bn € bn Liquid assets 17.7 3.6 3.6 12.0 2.2 Ø 2.73 1.8 5.5 1.5 2.2 5.7 1.5 Q2 - Q4 2025 2026 2027 2028 Liquidity Maturities Q2 Maturities Maturities Total reserve - Q4 2025 202

  47. Slide 47: Balance sheet solid across the board

    Balance sheet solid across the board € bn 31/03/2024 30/06/2024 30/09/2024 31/12/2024 31/03/2025 Balance sheet total 295.2 296.0 288.6 304.9 305.0 Shareholders’ equity 93.2 92.4 92.4 98.6 97.8 Net debt excl. leases (AL) 94.5 97.1 92.5 99.3 95.7 Net debt excl. leases (AL)/adj. EBITDA AL1 2.30 2.32 2.

  48. Slide 48: Guidance 2025 new guidance compared to consensus

    Guidance 2025 new guidance compared to consensus € bn Guidance 2025 in € Guidance 2025 in € Consensus in € @ 1.08 @ 1.08 (Cons. f/x) @ 1.08 Adj. EBITDA AL Group ~45.0 ~45.0 45.2 US GAAP guidance is in line with consensus. thereof ex US 15.0 15.0 15.1 thereof TMUS ~30.0 ~30.0 30.2 FCF AL ~20.0 ~20.0

  49. Slide 49: Outlook 2025/26 as per annual report 2024 (1/2)

    Outlook 2025/26 as per annual report 2024 (1/2)1 € bn 2024 pro forma 2025e 2026e Revenue Group 115.9 Increase Increase Germany 25.7 Slight increase Slight increase US (in US$) 81.3 Increase Increase Europe 12.3 Increase Increase Systems Solutions 4.0 Slight increase Slight increase Service Revs Grou

  50. Slide 50: Outlook 2025/26 as per annual report 2024 (2/2)

    Outlook 2025/26 as per annual report 2024 (2/2)1 € bn 2024 pro forma 2025e 2026e Cash Capex Group 16.0 ~17.1 Stable Germany 4.8 Stable Slight increase US (in US$) 8.9 Increase Stable Europe 1.9 Slight increase Slight increase Systems Solutions 0.2 Stable Stable FCF AL Group 19.2 ~19.9 Increase Adj.

  51. Slide 51: Further questions please contact the IR department

    Further questions please contact the IR department +49 228 181 – 8 88 80 Individutal contact details for Homepage: investor.relations@telekom.de all IR representatives: www.telekom.com/investors www.telekom.com/ircontacts Investor relations on social media – Follow us to stay up to date! linkedin.co

Deutsche Telekom — Investor Presentation (May 2025) on 6ix