Slide 1: Deutsche Telekom Investor presentation March 2022
Deutsche Telekom Investor presentation March 2022
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 2021: accelerated delivery on CMD 2021 targets
Review 2021 accelerated delivery on CMD 2021 targets Organic growth Capital allocation/portfolio Shareholder value Commercial growth Decisive steps towards TMUS majority Adj. EPS taken (+5.2pp to 48.4%1) • 7.1 mn new postpaid subs • €1.22 in 2021 • 0.8 mn new broadband subs Sale of TM NL at €5.1 bn
Slide 4: Financials 2021 reported: strong growth
Financials 2021 reported strong growth € mn Q4 FY 2020 2021 Change 2020 2021 Change Revenue 27,622 28,934 +4.7% 100,999 108,794 +7.7% Adj. EBITDA AL 8,952 9,007 +0.6% 35,017 37,330 +6.6% Adj. EBITDA AL (excl. US) 3,413 3,524 +3.3% 14,020 14,633 +4.4% Adj. Net profit 1,643 1,234 -24.9% 5,715 5,862
Slide 5: Financials 2021 organic: strong organic growth
Financials 2021 organic strong organic growth FY/21 Adj. EBITDA AL FY/21 Adj. EBITDA AL2 FY/21 Key Financials growth yoy, organic € mn % growth yoy, organic TMUS 0.1%1 Revenue +4.5% +€30 mn Service Revenues +3.5% GER 9,520 3.7% Service Revenues +€339 mn +2.0% (excl. US) EU 5.4% Adj. EBITDA AL +1.9%
Slide 6: Financials 2017–2021: consistent growth in key KPIs
Financials 2017–2021 consistent growth in key KPIs Service revenues Adj. EBITDA AL FCF AL >€18 bn in % growth yoy, organic % growth yoy, organic € bn 2024e 7.9% 7.8%1 8.8 7.2% 7.0 6.3 6.3 3.7% 3.5% 4.9% 5.5 4.2% 2.6% 2.6% 1.6% 1.9% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 202
Slide 7: DT ex US: strong EBITDA growth outperformance
DT ex US strong EBITDA growth outperformance EBITDA AL adj.: DT ex US vs. Ø Peer1 Ø Peer DTexUS in %, organic growth yoy 6 4.8 3.7 3.7 4 2.8 2 1.2 2.4 0 0.8 1.0 2017 2018 2019 2020 2021 -2 -1.3 -2.6 -4 -6 1) Peer group: 8 European Telco groups (Orange, Telefonica, Vodafone, BT, Telecom Italia, KPN,
Slide 8: T-Mobile US: consistent growth leader
T-Mobile US consistent growth leader Key opportunities Service revenue (US GAAP)1 Customer growth % growth yoy, organic Postpaid net adds in mn • SMRA 8.3% • B2B 6.1% 6.3% 6.6% 5.2% • Home internet 2017 2.8 3.6 • Sprint Integration 2017 2018 2019 2020 2021 2018 3.1 4.5 Key advantages Adj. EBITDA (US
Slide 9: CMD 2018 review: strong delivery on commitments
CMD 2018 review strong delivery on commitments Ambition Merger Impact Achievements 2017-20211 Revenue CAGR1 1–2% 3.3% Adj. EBITDA (AL) CAGR 2–4% 5.3%/7.7%2 Adj. EBITDA (AL) CAGR (ex US) 2–3% 3.7% FCF (AL) CAGR ~10%; 2021: >€8 bn Dilutive 18.7%; €8.8 bn FCF (AL) (ex US) 2021: ~€4
Slide 10: Indirect costs: CMD 2018 target overdelivered, CMD 2021 target on track
Indirect costs CMD 2018 target overdelivered, CMD 2021 target on track Organic net savings 2017–2021 Organic net savings 2020–2024 € bn € bn 1.8 2018 CMD target €1.5 bn Germany/GHS1 1.0 • 9% of IDC AL saved -0.4 • Driven by greater agility and digitalization • Personal productivity Europe 0.4 +20% T
Slide 11: Financials 2021: net debt and leverage ratios
Financials 2021 net debt and leverage ratios Net debt excl. leases (AL) Leverage ratios € bn +11.0 100.6 CMD: back in 6.1 89.6 8.4 1.6 0.6 2.25.–2.75 -8.8 3.1 range YE 24 3.06x 2.70x FY/20 FCF AL Dividends Spectrum Acquisition Softbank F/X and FY/21 Excl. Leases Incl. Leases of Shentel option others
Slide 12: Financials: well balanced maturity profile with strong liquidity reserve
Financials well balanced maturity profile with strong liquidity reserve DT (ex US) bonds maturing Ex US liquidity position € bn € bn Credit lines 14.5 Liquid assets 4.1 3.4 3.2 Ø 3.2 3.4 7.5 12.7 2.0 4.1 1.8 2022 2023 2024 2025 Liquidity Maturities Maturities Total maturities reserve 2022 2023 next
Slide 13: Operations Review 2021
Operations Review 2021
Slide 14: Networks: leading with 5G, FTTH well on track
Networks leading with 5G, FTTH well on track FTTH (1 Gbps) 5G TM US 5G Germany Homes passed1 Ultra capacity 5G2 % of POPs +36.0% mn 33.3% mn POPs +98.1% >90 10.4 67 7.8 210 7.0 106 5.6 2.2 3.4 YE/20 YE/21 YE/20 YE/21 YE/20 YE/21 On track for CMD targets Targeting 260m YE 2022 >3500 antennas wi
Slide 15: Customers: consistent strong growth
Customers consistent strong growth Mobile net adds Fixed line net adds '000 US (postpaid) '000 Broadband 5,486 5,495 716 764 4,459 4,515 585 645 3,620 506 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2,167 Ex US (contract)1 TV 1,689 1,690 1,628 456 1,523 359 343 366 347 2017 2018 2019 2020 2021
Slide 16: Society and Environment: strong ESG Performance in all dimensions
Society and Environment strong ESG Performance in all dimensions Societal agenda Environmental agenda Customer satisfaction Energy consumption/intensity2 Tri*M • Switch to 100% electricity from renewables accomplished mn MWh 67.3 72.7 73.4 12.8 13.3 • Eco Rating: Successful launch of industrywide in
Slide 17: Germany Review 2021
Germany Review 2021
Slide 18: Germany: 21st consecutive quarter of EBITDA growth
Germany 21st consecutive quarter of EBITDA growth Revenues (as reported) Adj. EBITDA AL (as reported) € mn € mn +1.0% +3.5% 6,264 6,329 2,324 2,405 Q4/20 Q4/21 Q4/20 Q4/21 Revenue growth1 Adj. EBITDA AL1 % growth yoy, organic % growth yoy, organic 3.4% 2.9% 3.5% 3.8% 3.8% 3.6% 2.1% 1.8% 0.6% 1.1% Q4
Slide 19: Germany: service revenue growth driven by mobile and fixed
Germany service revenue growth driven by mobile and fixed Total service revenue1,2 Mobile service revenue1 % growth yoy, organic 2.1% % growth yoy, organic 2.3% 1.7% 1.8% 1.6% 2.0% 2.0% -0.1% Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 -0.8% -1.7% Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Fixed service revenue growth1,2 % gr
Slide 20: Germany: FTTH on track with buildout and monetization
Germany FTTH on track with buildout and monetization Progress with FTTH buildout Progress with monetization Homes passed, mn Share of ≥ 100 Mbps contracts Retail broadband ARPA2 % of broadband base €/month 33.0 33.3 34.2 32.5 New Collaborations 25.0 17.6 ~5.4 Own 3.4 10.0 buildout1 2019 2020 2021 20
Slide 21: Germany: ongoing strong execution and digitization
Germany ongoing strong execution and digitization Service Digitization Customer satisfaction First contact resolution App penetration E-sales share1 TRI*M % +5% % % 52 55 66 24 25 69% 69% 43 56 61% 19 42 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 Employee satisfaction Customer compl
Slide 22: Germany: consistent growth
Germany consistent growth Total service revenue Adj. EBITDA AL CMD: 2.5–3.0% % growth yoy, organic % growth yoy, organic CAGR 2020–2024 3.7 2.8 2.4 1.8 1.7 1.5 0.8 0.7 0.6 0.1 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • 2021 positively impacted by non-recurring public sector revenues • 2022
Slide 23: Other segments Review 2021
Other segments Review 2021
Slide 24: Europe: fastest growing large European telco
Europe fastest growing large European telco FTTH (1 Gbps)1 Total service revenue growth Digitization Organic, % • 1.4 mn additional homes passed in 2021 • App penetration 64% • 7 mn homes YE 21 • Truck Rolls reduced by 200k in 2021 1.8% 1.9% 2.0% leading to a significant CO2 reduction. 0.4% 0.7% 201
Slide 25: GD/Towers: ongoing expansion
GD/Towers ongoing expansion Total sites1 Recurring rental revenues '000 € mn 40.6 +14.4% 35.7 7.0 • 6.3k sites built 2017-2021 (organic +9.1%) • External recurring 3.2 0.0 0.0 o/w 1.4k in 2021 revenues Q4/21: 254 Organic +12,8% 222 32.5 33.6 Austria • 24% of recurring sales NL are external DFMG Q4/2
Slide 26: Systems Solutions: turnaround continues
Systems Solutions turnaround continues Revenue drivers Revenue Transformation drivers % growth yoy, organic IDC savings € bn Public Cloud +19%1 1.1% 0,39 Digital Solutions +14%1 2021 0,06 Ongoing legacy decline (MIS -14%1 ) -1.0% -1.1% 2020 0,11 -2.1% MIS now down to 32% of TSI revenues vs.
Slide 27: Outlook
Outlook
Slide 28: Guidance 2022: group outlook
Guidance 20221 group outlook Core EBITDA AL Adj. TM US DT Ex US Adj. EBITDA AL TM US DT Ex US € bn +5% € bn 36.5 ~36.5 33.7 ~35.5 22.7 22.3 19.9 21.3 13.8 14.2 13.8 14.2 FY/21 pro Guidance 2022 FY/21 pro Guidance 2022 forma results forma results FCF AL TM US DT Ex US Adj. EPS € bn €/share +18% 1.22
Slide 29: EX US financials
EX US financials Adj. EBITDA AL Cash capex FCF AL € bn € bn € bn 14.6 14.2 14.0 13.8 7.7 7.7 7.7 7.3 3.9 3.7 3.5 3.3 2020 2021 2021 2022e 2020 2021 2021 2022e 2020 2021 2021 2022e pro forma pro forma pro forma CMD targets1 • 2–3% CAGR in 2020-24 • Increase for FTTH of ~€ 0.5 bn • ~€ 4.0 bn in 2024 f
Slide 30: Financials: growing adj. EPS and dividends
Financials growing adj. EPS and dividends Adj. EPS/Dividend per share1 Dividend policy €/share Adjusted EPS payout ratio: 40–60% >1.75 >1.25 1.20 1.22 1.04 0.96 2018 2019 2020 2021 2022e 2024e 70c 60c 60c 64c 1 2020 EPS benefitted from TM US options (+17c). 2021 includes -4c from TM US options and +
Slide 31: 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