Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q1 2021 Earnings Presentation
33 slides from Deutsche Telekom's earnings presentation, May 12, 2021
Slide 1: Deutsche Telekom Q1 2021 results
Deutsche Telekom Q1 2021 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: Q1 2021 results sector leading growth
Q1 2021 results sector leading growth T-Mobile • Strong growth with customers and EBITDA. FY guidance raised • 40 MHz of C-band spectrum acquired • Sprint integration ahead of plan and synergy guidance raised • Analyst Day lays out FCF and buyback targets Ex US • 4.6% adj. EBITDA AL growth, FY guida
Slide 4: Q1 2021 adj. EBITDA AL up 8% organic
Q1 2021 adj. EBITDA AL up 8% organic Adj. EBITDA AL (Organic growth) Adj. EBITDA AL1 Total: Q1 2021 Reported growth € mn €9,245 mn Revenue +32.3% TMUS 10.7% +€552 mn Adj. EBITDA AL +41.3% GER 2,305 Adj. EBITDA AL 3.5% +4.6% (excl. US) +€79 mn Adj. Net profit -6.5% EU 4.1% +€37 mn Net profit +2.2% 5,
Slide 5: Networks leading with 5G, FTTH on track
Networks leading with 5G, FTTH on track Fiber networks 5G TM US 5G ex US Fiber homes1 +0.7 Extended range2 +15 Germany +13 mn mn POPs % of POPs 49.6 50.3 280 295 80 67 13.7 14.0 35.9 36.3 Q4/20 Q1/21 Q4/20 Q1/21 Q4/20 Q1/21 FTTH (1Gbps) 5G TM US GER Fiber homes Ultra capacity 5G2 +0.6 +34 • YE targe
Slide 6: Customers growing strongly
Customers growing strongly Mobile net adds Fixed line net adds2 000 1,210 000 150 162 777 US (postpaid) Broadband Q1/20 Q1/21 Q1/20 Q1/21 315 330 80 55 32 Ex US (contract)1 TV Q1/20 Q1/21 Q1/20 Q1/21 1 GER + EU + NL. GER: own brand only 2 GER + EU + NL 6
Slide 7: Guidance 2021 outlook improved for the group
Guidance 2021 outlook improved for the group ADJ. EBITDA AL € bn -0.8 >37 ~37 We now expect adj. EBITDA >2.4 after leases of more than 37bn 35.0 >22.7 22.7 0.4 and FCF of more than €8bn 21.0 TM US reflecting improved Q1 outlook 14.4 14.3 for TM US and DT ex US. Ex US Previous statement was around 14
Slide 8: Review Q1 2021
Review Q1 2021
Slide 9: Financials strong growth
Financials strong growth € mn Q1 2020 2021 Change Revenue 19,943 26,390 +32.3% Adj. EBITDA AL 6,544 9,245 +41.3% Adj. EBITDA AL (excl. US) 3,384 3,538 +4.6% Adj. Net profit 1,284 1,201 -6.5% Net profit 916 936 +2.2% Adj. EPS (in €) 0.27 0.25 -7.4% Free cash flow AL1,2 1,287 2,585 +100.8% Cash
Slide 10: Adj. EBITDA AL growth on both sides of the Atlantic
Adj. EBITDA AL growth on both sides of the Atlantic Ex US growth (IFRS organic) TMUS growth (IFRS organic)1 % yoy % yoy 14.5% 14.6% 12.6% 4.6% 10.7% 4.2% 4.1% 3.5% 3.2% 4.5% Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 1 Sprint included since Q2/20 10
Slide 11: Germany 18th consecutive quarter of EBITDA growth
Germany 18th consecutive quarter of EBITDA growth Revenues (as reported) Adj. EBITDA AL (as reported) € mn € mn +1.9% +3.4% 5,830 5,942 2,230 2,305 Q1/20 Q1/21 Q1/20 Q1/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy 2.9% 3.5% 0.7% 0.6% 0.6% 2.0% 2.2% 1.3% 1.1% -1.1% Q1/20
Slide 12: Germany service revenues driven by strong fixed
Germany service revenues driven by strong fixed Total service revenue growth (organic)1,2 % yoy 1.7% Reported Total Service revenue growth: +1.3%. 1.0% 1.0% 0.9% Reported Fixed Service revenue growth: +2.2% Covid-19 Headwind to mobile service revenue 2.0 pp after 2.8 pp in Q4. -0.1% Ex Covid-19 grow
Slide 13: Germany positive mobile KPIs
Germany positive mobile KPIs Magenta EINS share (mobile)1 Data usage2 % GB 5.8 58% 62% 4.5 +29% y/y Q1/20 Q1/21 Q1/20 Q1/21 Churn2 Branded contract net adds3 % 000 0.9% 192 206 0.8% 167 141 110 Q1/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 1 As % of B2C T-branded contract customers 2 Per month of B2C T-
Slide 14: Germany strong commercials in fixed
Germany strong commercials in fixed Broadband net adds TV net adds 000 000 121 77 97 93 60 64 83 87 45 32 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Line losses Fiber net adds Retail 000 000 Wholesale • 0.8 mn super vectoring customers (+0.1 mn q/q) 389 386 415 367 368 -12 -29 225 2
Slide 15: Germany growth in retail fixed
Germany growth in retail fixed Retail fixed revenues (reported)1,2 Broadband revenue growth1 € mn +3.6% % yoy 2,923 3,027 6.2% 6.4% 6.5% 5.7% Broadband revenues +6.5% 4.4% 1,492 1,589 Single play and other revenues 1,431 1,438 +0.4% Q1/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Retail fixed revenue grow
Slide 16: Germany new fiber commitment model
Germany new fiber commitment model Old “Kontingent” model1 New “Commitment” model1 € per month € per month • 10-year commitments (plus 3- year extension) • Layer2 bitstream no longer (ex ante) price-regulated 50 Mbps 11.8 16.6 50 Mbps 12.0 15.7 • FTTH charges agreed; clear more-for-more logic 100 Mb
Slide 17: T-Mobile continued strong performance
T-Mobile continued strong performance Revenues (IFRS) Adj. EBITDA AL (IFRS) US$ bn US$ bn +77.4% +97.4% 19.9 6.9 11.2 3.5 Service revenues Q1/20 Q1/21 Q1/20 Q1/21 Service revenue (IFRS)1 Adj. EBITDA AL growth (IFRS) organic US$ bn/% yoy US$ bn/% yoy 6.9 7.0 6.6 6.9 14.1 14.0 14.0 14.1 +4.5% +14.6% +
Slide 18: T-Mobile industry leading network and strong customer KPIs
T-Mobile industry leading network and strong customer KPIs Ultra Capacity 5G coverage15G EXTENDED RANGE 5G ULTRA CAPACITY Total postpaid net additions2 mn POPs mn 90% of population 250 2.0 200 1.6 140 1.1 1.2 106 0.8 2020 Q1/21 2021e 2022e 2023e Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Annual synergies End of
Slide 19: Europe 13th consecutive quarter of organic EBITDA growth
Europe 13th consecutive quarter of organic EBITDA growth Revenues Adj. EBITDA AL € mn € mn -1.1% +1.1% 2,759 2,729 936 946 Q1/20 Q1/21 Q1/20 Q1/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 2.1% 4.1% 3.2% 0.8% 0.2% 2.1% 1.9% -0.5% 1.1% -1.7% Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1
Slide 20: Europe strong net adds in all categories
Europe strong net adds in all categories Mobile contract net adds1 Broadband net adds2 000 000 212 216 164 87 151 68 108 53 59 58 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/203 Q2/20 Q3/20 Q4/20 Q1/21 FMC net adds TV net adds 000 000 258 248 234 71 197 191 48 20 26 -5 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20
Slide 21: T-Systems profitability stabilized
T-Systems profitability stabilized Order entry (LTM) Revenues Adj. EBITDA AL € bn € mn € mn +0.3% -4.4% +3.3% 4.6 4.6 1,062 1,015 60 62 Q1/20 Q1/21 Q1/20 Q1/21 Q1/20 Q1/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy Growth in Public Cloud offset by decline in 95.2% matur
Slide 22: Group Development ongoing strong performance
Group Development ongoing strong performance Revenues Adj. EBITDA AL € mn € mn +10.5% +17.5% 708 782 316 269 513 NL 136 151 NL 476 282 GD Towers 145 169 GD Towers 247 -15 -13 -12 -4 Other Others Q1/20 Q1/21 Q1/20 Q1/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 4.8% 5.0% 13
Slide 23: GD/TMNL EBITDA growth continues
GD/TMNL EBITDA growth continues Contract net adds Mobile service revenue growth (organic) 000 % yoy 67 62 5.5% 50 2.3% 22 0.4% 0.6% 12 -0.9% Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Broadband net adds Adj. EBITDA AL growth (organic) 000 % yoy 22.2% 21 17 14 11 11 10.6% 6.8% 6.2% 2
Slide 24: GD Towers ongoing expansion
GD Towers ongoing expansion Total sites Recurring rental revenues 000 € mn 42.6 +15.1% 34.5 7.0 (organic +3.2%) 3.1 3.1 Austria 253 220 31.3 32.5 NL DFMG Q1/20 Q1/21 Q1/20 Q1/21 Opex AL per site Adj. EBITDA +14.9% € 000 € mn (organic +1.8%) 3.1 3.0 224 195 EBITDA AL: +16.6% 145 169 (organic +7.2%) Q
Slide 25: Financials strong FCF run rate in Q1
Financials strong FCF run rate in Q1 Free Cash Flow AL1 Adj. net profit € mn € mn +100.8% -6.5% -481 -2,233 -930 2,585 3,135 2,748 -39 1,287 1,284 -719 -53 1,201 -213 Q1/20 Net CF gen. Leasing Capex (excl. Others Q1/21 Q1/20 Adj. EBITDA D&A Financial Taxes Minorities Q1/21 from ops. repayments spect
Slide 26: Net debt analysis US spectrum auction and currency drive leverage
Net debt analysis US spectrum auction and currency drive leverage Q1/21 net debt w/o leases1 Q1/21 net debt incl. leases Leverage ratios2 € bn € bn 129.5 2.98x 98.3 2.6x 13.4 11.3 120.2 89.6 -4.1 -2.6 Q4/20 FCF AL Other Q1/21 Q4/20 FCF IFRS 16 Other Q1/21 IFRS 16 Excl. leases incl. leases (AL) Other
Slide 27: Balance sheet net debt ratio outside of IFRS comfort zone
Balance sheet net debt ratio outside of IFRS 16 comfort zone € bn 31/03/2020 30/06/2020 30/09/2020 31/12/2020 31/03/2021 Balance sheet total 173.6 270.0 265.3 264.9 273.9 Shareholders’ equity 45.9 73.5 72.0 72.6 77.5 Net debt 77.4 120.9 124.5 120.2 129.5 Net debt/Adj. EBITDA1 2.64 2.90 2.90 2.78 2.9
Slide 28: Appendix
Appendix
Slide 29: FCF AL excl. US
FCF AL excl. US € bn FY 2020 Q1 2020 Q1 2021 Adj. EBITDA AL 14.0 3.4 3.5 Cash Capex -7.7 -1.9 -1.7 Proceeds from sale of fixed assets +0.2 +0.1 +0.0 Special Factors Cash -1.4 -0.4 -0.4 Interest ex leasing -0.6 -0.1 -0.2 Cash Taxes -0.6 -0.1 -0.2 Other (working capital etc.) -0.4 -0.4 +0.4 FCF AL 3.3
Slide 30: Outlook 2021/22 as per annual report 2020 (1/2)
Outlook 2021/22 as per annual report 2020 (1/2)1 € bn 2020 pro forma 2021e 2022e Revenue Group 106.7 Slight increase Stable Germany 23.6 Slight increase Slight increase US (in USD) 76.4 Slight increase Stable Europe 11.3 Stable Stable Systems Solutions 4.2 Slight decrease Stable Group Development 3.
Slide 31: Outlook 2021/22 as per annual report 2020 (2/2)
Outlook 2021/22 as per annual report 2020 (2/2)1 € bn 2020 pro forma 2021e 2022e Cash Capex Group 17.8 18.4 Stable Germany 4.2 Stable Increase US (in USD) 11.7 Increase Stable Europe 1.8 Slight decrease Stable Systems Solutions 0.2 Stable Stable Group Development 0.5 Strong increase Increase FCF AL
Slide 32: Conference call with Q&A session
Conference call with Q&A session The conference call will be held on May 12 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET. DT Participants: Christian Illek (CFO), Hannes Wittig (Head of IR) Webcast Dial-in • The link to the webcast will be provided 20 minutes before the DE 0800 5889185 + code 1265248# call s
Slide 33: 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 IR representatives: www.telekom.com/ircontacts IR Webpage IR Twitter Account IR YouTube Channel www.telekom.com/investors www