Slide 1: Deutsche Telekom Q2 2021 results
Deutsche Telekom Q2 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: H1 2021 results: sector leading growth
H1 2021 results sector leading growth Group • Organic total revenue growth 6.9% • Organic adj. EBITDA AL growth of 4.6%. 2021 guidance raised for the 2nd time • H1 results confirm medium term targets laid out at the CMD • Moody’s upgrades outlook to stable Ex US • Delivering strong customer growth •
Slide 4: H1 2021 strong organic adj. EBITDA AL growth
H1 2021 strong organic adj. EBITDA AL growth Adj. EBITDA AL (Organic growth) Adj. EBITDA AL1 Total: H1 2021 Reported growth € mn € 18,662 mn Revenue +12.8% TMUS 4.6% +€507 mn Adj. EBITDA AL +14.0% GER 4,659 Adj. EBITDA AL 3.7% +4.5% (excl. US) +€166 mn Adj. Net profit +29.4% EU 4.7% +€87 mn Net prof
Slide 5: Networks: leading with 5G, FTTH well on track
Networks leading with 5G, FTTH well on track Fiber networks 5G TM US 5G ex US Fiber homes1 +0.9 Extended range2 +25 Germany +15 mn mn POPs % of POPs 49.6 50.5 280 305 82 67 13.7 14.1 35.9 36.4 Q4/20 Q2/21 Q4/20 Q2/21 Q4/20 Q2/21 FTTH (1Gbps) 5G TM US GER Fiber homes Ultra capacity 5G2 +1.0 +59 • YE
Slide 6: Customers growing strongly
Customers growing strongly Mobile net adds Fixed line net adds2 000 2,486 000 1,889 317 328 US (postpaid) Broadband H1/20 H1/21 H1/20 H1/21 738 638 119 122 69 Ex US (contract)1 TV H1/20 H1/21 H1/20 H1/21 1 GER + EU + NL. GER: own brand only 2 GER + EU + NL 6
Slide 7: Guidance 2021: outlook improved for the 2nd time
Guidance 2021 outlook improved for the 2nd time Adj. EBITDA AL DT Ex US € bn >37 >37.2 TM US 35.0 ~37 We now expect adj. EBITDA 14.3 14.4 14.4 after leases of more than 14.0 37.2 bn reflecting improved Q2 outlook for TM US. 21.0 22.7 >22.7 >22.8 FY/20 Original Guidance Guidance update Q1 Guidance up
Slide 8: Review Q2 2021
Review Q2 2021
Slide 9: Financials as reported: strong growth
Financials as reported strong growth € mn Q2 H1 2020 2021 Change 2020 2021 Change Revenue 27,041 26,593 -1.7% 46,984 52,983 +12.8% Adj. EBITDA AL 9,829 9,418 -4.2% 16,373 18,662 +14.0% Adj. EBITDA AL (excl. US) 3,525 3,680 +4.4% 6,909 7,219 +4.5% Adj. Net profit 1,278 2,113 +65.3% 2,562 3,315 +29
Slide 10: Germany: 19th consecutive quarter of EBITDA growth
Germany 19th consecutive quarter of EBITDA growth Revenues (as reported) Adj. EBITDA AL (as reported) € mn € mn +0.9% +3.7% 5,853 5,903 2,270 2,354 Q2/20 Q2/21 Q2/20 Q2/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy 2.9% 1.8% 3.8% 3.5% 0.6% 0.6% 2.2% 1.3% 1.1% -1.1% Q2/20
Slide 11: Germany: service revenue growth driven by mobile and fixed
Germany service revenue growth driven by mobile and fixed Total service revenue growth (organic)1,2 % yoy 1.7% 1.8% 1.0% Reported Total Service revenue growth: +1.4%. 0.9% Reported Fixed Service revenue growth: +1.3% Mobile service revenue growth excl. Covid-19 and regulation: +1.4% -0.1% Q2/20 Q3/2
Slide 12: Germany: positive mobile KPIs
Germany positive mobile KPIs Magenta EINS share (mobile)1 Data usage2 % GB 6.3 59% 62% 4.7 +34% y/y Q2/20 Q2/21 Q2/20 Q2/21 Churn2 Branded contract net adds3 % 000 0.8% 0.8% 206 192 167 161 110 Q2/20 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 1 As % of B2C T-branded contract customers 2 Per month of B2C T-
Slide 13: Germany: strong commercials in fixed
Germany strong commercials in fixed Broadband net adds TV net adds 000 000 121 77 97 93 93 64 87 45 32 37 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Line losses Fiber net adds Retail 000 000 Wholesale • 0.9 mn super vectoring customers (+0.1 mn q/q) 386 415 367 368 -12 -7 291 225 23
Slide 14: Germany: growth in retail fixed
Germany growth in retail fixed Retail fixed revenues (reported)1,2 Broadband revenue growth1 € mn +3.1% % yoy 2,943 3,035 6.2% 6.4% 6.5% 6.4% 5.7% Broadband revenues +6.4% 1,517 1,614 Single play and other revenues 1,426 1,421 -0.4% Q2/20 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Retail fixed revenue grow
Slide 15: T-Mobile: continued strong performance
T-Mobile continued strong performance Revenues (IFRS) Adj. EBITDA AL (IFRS) US$ bn US$ bn +5.4% -0.4% 19.0 20.1 6.9 6.9 Service revenues Q2/20 Q2/21 Q2/20 Q2/21 Service revenue (US GAAP)1 Core EBITDA growth (US GAAP)1 US$ bn/% yoy US$ bn/% yoy 14.5 6.0 14.1 14.2 14.2 +9.5% 5.6 5.8 5.9 +7.1% 13.2 5.5
Slide 16: T-Mobile: industry leading network and strong customer KPIs
T-Mobile industry leading network and strong customer KPIs Ultra Capacity 5G coverage1 5G EXTENDED RANGE 5G ULTRA CAPACITY Total postpaid net additions mn POPs mn 90% of population 250 2.0 200 1.6 165 1.2 1.3 1.1 106 2020 Q2/21 2021e 2022e 2023e Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Annual synergies End of
Slide 17: Europe: 14th consecutive quarter of organic EBITDA growth
Europe 14th consecutive quarter of organic EBITDA growth Revenues Adj. EBITDA AL € mn € mn +4.3% +4.4% 2,706 2,823 952 994 Q2/20 Q2/21 Q2/20 Q2/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 5.3% 4.0% 4.1% 0.8% 0.2% 2.1% 1.9% 1.1% -0.5% -1.7% Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2
Slide 18: Europe: consistent commercial performance
Europe consistent commercial performance Mobile contract net adds Broadband net adds 000 000 212 216 164 177 87 151 68 59 58 57 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 FMC net adds TV net adds1 000 000 258 248 234 191 69 128 46 19 26 6 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4
Slide 19: T-Systems: profitability stabilized
T-Systems profitability stabilized Order entry (LTM) Revenues Adj. EBITDA AL € bn € mn € mn +14.2% -5.5% +1.4% 4.8 1,065 1,006 71 72 4.2 Q2/20 Q2/21 Q2/20 Q2/21 Q2/20 Q2/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy Growth in Public Cloud and Digital 0.9% 1.4% Solutions
Slide 20: Group Development: ongoing strong performance
Group Development ongoing strong performance Revenues Adj. EBITDA AL € mn € mn +8.9% +12.4% 716 780 318 283 506 NL 143 155 NL 480 283 GD Towers 145 170 GD Towers 248 -12 -9 -5 -7 Other Others Q2/20 Q2/21 Q2/20 Q2/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 4.8% 5.0% 13.2%
Slide 21: GD/TMNL: EBITDA growth continues
GD/TMNL EBITDA growth continues Contract net adds Mobile service revenue growth (organic) 000 % yoy 3.5% 70 62 2.3% 50 0.4% 0.6% 22 12 -0.9% Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Broadband net adds Adj. EBITDA AL growth (organic) 000 % yoy 22.2% 19 21 15 12 12 6.8% 6.2% 2.1% 3.
Slide 22: GD Towers: ongoing expansion
GD Towers ongoing expansion Total sites1 Recurring rental revenues 000 € mn 39.8 +13.2% 34.7 7.0 (organic +3.3%) 3.1 0.0 0.0 Austria 220 249 31.6 32.8 NL DFMG Q2/20 Q2/21 Q2/20 Q2/21 Opex AL per site Adj. EBITDA +15.9% € 000 € mn (organic +4.6%) 3.1 3.0 226 195 EBITDA AL: +17.2% 145 170 (organic +9.
Slide 23: Financials: strong FCF, net income benefited from SoftBank options
Financials strong FCF, net income benefited from SoftBank options Free Cash Flow AL1 Adj. net profit +65.3% € mn € mn +14.1% 2,113 -112 160 166 -618 2,766 772 2,425 774 19 1,278 -394 409 Q2/20 Net CF gen. Leasing Capex (excl. Others Q2/21 Q2/20 Adj. EBITDA D&A Financial Taxes Minorities Q2/21 from o
Slide 24: Balance sheet: leverage ratios stable
Balance sheet leverage ratios stable € bn 30/06/2020 30/09/2020 31/12/2020 31/03/2021 30/06/2021 Balance sheet total 270.0 265.3 264.9 273.9 270.5 Shareholders’ equity 73.5 72.0 72.6 77.5 77.0 Net debt excl. leases (AL) 97.2 92.7 89.6 98.3 96.8 Net debt AL/adj. EBITDA AL1 2.66 2.50 2.39 2.61 2.59 Ne
Slide 25: Appendix
Appendix
Slide 26: FCF AL excl. US
FCF AL excl. US € bn FY 2020 H1 2020 H1 2021 Adj. EBITDA AL 14.0 6.9 7.2 Cash Capex -7.7 -3.6 -3.3 Proceeds from sale of fixed assets +0.2 +0.1 +0.1 Special Factors Cash -1.4 -0.8 -0.7 Interest ex leasing -0.6 -0.3 -0.4 Cash Taxes -0.6 -0.0 -0.3 Other (working capital etc.) -0.4 -0.6 +0.1 FCF AL 3.3
Slide 27: 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 US$) 76.4 Slight increase Stable Europe 11.3 Stable Stable Systems Solutions 4.2 Slight decrease Stable Group Development 3.
Slide 28: Outlook 2021/22 as per annual report 2020 (2/2)
Outlook 2021/22 as per annual report 2020 (2/2)1 € bn 2020 pro forma 2021e 2022e Cash Capex Group 17.8 18.4 Stable Germany 4.2 Stable Increase US (in US$) 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 29: Conference call with Q&A session
Conference call with Q&A session The conference call will be held on August 12 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET. DT Participants: Tim Hoettges (CEO), 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
Slide 30: 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