Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q1 2008 Earnings Presentation
97 slides from Deutsche Telekom's earnings presentation, May 2008
Slide 1: Backup Q1 2008. Deutsche Telekom.
Backup Q1 2008. Deutsche Telekom. Check out our IR website www.telekom.com/investor-relations for: This backup in .pdf and excel-format The IR calender Detailed information for debt investors Shareholder structure Corporate governance For further information on the business units please refer to: ww
Slide 2: Notes
Notes. ===!"§ Page 2
Slide 3: Content
Content. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on special factors
Slide 4: At a Glance I
At a Glance I. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue Broadband/Fixed Network 5.832 5.655 5.626 5.577 22.690 5.382 -7,7% Mobile Communications 8.400 8.650 8.875 8.811 34.736 8.445 0,5% Mobile Europe 4.944 5.119 5.325 5.325 20.713 4.992 1,0% Mobile USA 3.468 3.545 3.
Slide 5: At a Glance II
At a Glance II. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. EBITDA margin excluding special factors Broadband/Fixed Network 32,1% 33,7% 35,0% 36,3% 34,2% 35,4% 3,3%p Mobile Communications 30,2% 31,8% 33,1% 28,4% 30,9% 31,5% 1,3%p Mobile Europe 32,4% 33,7% 35,8% 29,9% 32,9% 34,0% 1,6%p
Slide 6: Excellent market position
Excellent market position. Delta q.o.q. Delta y.o.y. millions 1 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 abs. % abs. % Broadband lines (total) 2,3 12,2 12,7 13,3 13,9 14,4 0,5 3,6% 2,2 18,0% of which domestic 11,1 11,5 12,0 12,5 13,0 0,5 4,0% 1,9 17,1% of which: resale4 3,4 3,5 3,5 3,5 3,4 -0,1
Slide 7: DT consolidated income statement. Adjusted for special factors
DT consolidated income statement. Adjusted for special factors. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Net revenue 15.453 15.575 15.693 15.795 62.516 14.978 -3,1% Cost of sales -8.612 -8.406 -8.320 -8.747 -34.085 -8.280 3,9% Gross profit 6.841 7.169 7.373 7.048 28.431 6.698 -2,1%
Slide 8: DT Group. EBITDA reconciliation
DT Group. EBITDA reconciliation. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Net revenue 15.453 15.575 15.693 15.795 62.516 14.978 Net profit (loss) 459 608 259 -757 569 924 + Profit (loss) attributable to minority interests 116 134 175 84 509 135 = Profit (loss) after income taxes 575 742 434
Slide 9: DT Group
DT Group. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on special factor
Slide 10: DT consolidated income statement. Unadjusted
DT consolidated income statement. Unadjusted. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Net revenue 15.453 15.575 15.693 15.795 62.516 14.978 -3,1% Cost of sales -8.620 -8.590 -8.607 -9.520 -35.337 -8.322 3,5% Gross profit 6.833 6.985 7.086 6.275 27.179 6.656 -2,6% Selling expenses
Slide 11: Special factors in the consolidated income statement
DT Group. Special factors in the consolidated income statement. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Net revenue 0 0 0 0 0 0 Cost of sales -8 -184 -287 -773 -1.252 -42 Gross profit -8 -184 -287 -773 -1.252 -42 Selling expenses 6 -65 -35 -404 -498 -89 General and administrative expenses
Slide 12: Details on special factors I
DT Group. Details on special factors I. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Effect on operating expenses -139 -298 -559 -2.224 -3.220 -220 of which: expenses due to sale of Callcenter VCS and VTS -132 2 -1 -231 -362 -45 of which: additional expenses for restructuring, staff reduction c
Slide 13: Details on special factors II
DT Group. Details on special factors II. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Effect on profit (loss) from financial activities -17 1 12 -5 -9 -43 of which: exp. from interest added back to provisions for staff-related measures -17 -17 -19 -5 -58 -51 of which: sale of Sireo 18 18 of whi
Slide 14: Change in the composition of the Group in the first quarter
DT Group. Change in the composition of the Group in the first quarter. reported MINUS PLUS Total % Pro numbers effect Forma Acquisition effects 1 Deconsolidation effects 5 Pro Q1/08 Q1/07 Q1/08 Mobile Mobile Bus. forma reported millions of € Total Europe2 USA3 BB/FN4 Total BB/FN6 Cust.7 GHS8 Q1/2008
Slide 15: Consolidated balance sheet. Assets
Consolidated balance sheet. Assets1. billions of € 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 % y.o.y. Current assets 17,3 15,2 16,1 15,9 16,1 -7,4% Cash and cash equivalents 4,0 2,1 3,5 2,2 2,3 -43,0% Trade and other receivables 7,6 7,6 7,7 7,7 7,1 -6,7% Current recoverable income taxes 0,3 0,4 0
Slide 16: Consolidated balance sheet. Shareholders' equity and liabilities
Consolidated balance sheet. Shareholders' equity and liabilities 1. billions of € 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 % y.o.y. Liabilities 79,4 77,3 74,6 75,4 73,8 -7,1% Current liabilities 21,1 22,0 21,1 23,2 22,4 6,1% Financial liabilities 7,9 9,5 8,2 9,1 9,2 16,3% Trade and other payable
Slide 17: Maturity profile
Maturity profile. Bonds, Medium Term Notes (MTN) and Schuldscheindarlehen EUR bn maturities as of March 31, 2008 ( € billion) 14 For detailed information on Bonds, Medium Term Notes and the 12 Mandatory Convertible Bond such as: •Principal amount •Currency 10 •Maturity date •Coupon 8 6.1 •ISIN Code
Slide 18: Liquidity reserves as of March 31, 2008
Liquidity reserves as of March 31, 2008. € billion 80 Liquidity reserves (€ billion) 21.2 70 60 Unused bilateral credit lines 17.6 21.2 Assets 50 3.6 40 57.1 30 20 35.9 Total line availability 10 Liquidity reserves 0 DT Group net debt ===!"§ Page 18
Slide 19: Debt to net debt reconciliation
Debt to net debt reconciliation. millions of € 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 % q.o.q. % y.o.y. Bonds 36.176 35.013 33.079 32.294 31.712 -1,8% -12,3% Other financial liabilities 8.137 8.507 7.891 8.568 8.541 -0,3% 5,0% Gross debt 44.313 43.520 40.970 40.862 40.253 -1,5% -9,2% Cash and
Slide 20: Cash capex
Cash capex1. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Broadband/Fixed Network 722 534 629 920 2.805 623 -13,7% Mobile Communications 915 822 767 1.392 3.896 951 3,9% Mobile Europa 448 387 405 698 1.938 471 5,1% Mobile USA 467 435 362 694 1.958 480 2,8% Business Customers 273 149 20
Slide 21: Free cash flow
Free cash flow. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Net profit (loss) 459 608 259 -757 569 924 n.a. Profit (loss) attributable to minority interests 116 134 175 84 509 135 16,4% Profit (loss) after income taxes 575 742 434 -673 1.078 1.059 84,2% Depr., amortization and impairm
Slide 22: Personnel
Personnel1. End of period 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 Delta q.o.q. Delta y.o.y. abs. % abs. % BBFN 100.434 98.459 95.698 93.486 96.687 3.201 3,4% -3.747 -3,7% Domestic 81.386 80.293 78.598 76.990 80.941 3.951 5,1% -445 -0,5% International 19.048 18.166 17.100 16.496 15.746 -750 -4,5
Slide 23: Exchange rates
Exchange rates. Average. € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 1 U.S dollar (USD) 0,76316 0,74185 0,72801 0,69071 0,72974 0,66738 1 British pound (GBP) 1,49169 1,47333 1,47034 1,41335 1,46142 1,32058 100 Czechs korunas (CZK) 3,56627 3,53691 3,57903 3,72764 3,60154 3,91072 100 Croatian kunas (HRK) 13
Slide 24: Sustainability Achievements. Supply chain management
Sustainability Achievements. DT`s approach towards supply chain management. DT became in 2007 a leading Company [in supply chain] (recognized by SAM Sustainable Asset Management AG, Zurich) 2007/2008 Achievements Transformation and implementation of strategy into DT`s Global Procurement Policies and
Slide 25: Sustainability Achievements. Selected response from the financial community
Sustainability Achievements. Selected response from the financial community. Organization/Rater Rating Deutsche Telekom Criteria WWF Deutsche Telekom is worldwide the best Strategic positioning on climate change, Capital 03 – 2007 positioned corporate as far as climate change global warming (German
Slide 26: Sustainability Achievements. Decoupling energy consumption from CO2 emissions
Sustainability Achievements. Decoupling energy consumption from CO2 emissions. Deutsche Telekom Germany (1995 = 100 %) Energy CO2eq 120% Inclusion of energy amounts carried forward from previous years for technical reasons 100% Purchase of renewable energy certificates 80% Increased purchase of 60%
Slide 27: Notes
Notes. ===!"§ Page 27
Slide 28: Mobile Communications
Mobile Communications. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on s
Slide 29: T-Mobile Adjusted for special influences
T-Mobile Adjusted for special influences € million Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 8.400 8.650 8.875 8.811 34.736 8.445 0,5% Net revenue 8.246 8.472 8.694 8.638 34.050 8.292 0,6% ARPU revenue 7.485 7.722 7.949 7.732 30.888 7.569 1,1% Adj. EBITDA1 2.539 2.750 2.938 2.506 10
Slide 30: T-Mobile EBITDA Reconciliation
T-Mobile EBITDA Reconciliation € million Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 8.400 8.650 8.875 8.811 34.736 8.445 0,5% Profit (loss) from operations = EBIT 1.066 1.297 1.356 734 4.453 1.260 18,2% - Depreciation and amortization -1.455 -1.444 -1.579 -1.655 -6.133 -1.400 3,8% =
Slide 31: T-Mobile Unadjusted
T-Mobile Unadjusted € million Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 8.400 8.650 8.875 8.811 34.736 8.445 0,5% Net revenue 8.246 8.472 8.694 8.638 34.050 8.292 0,6% ARPU revenue 7.485 7.722 7.949 7.732 30.888 7.569 1,1% EBITDA 2.521 2.741 2.935 2.389 10.586 2.660 5,5% EBITDA marg
Slide 32: T-Mobile Special influences
T-Mobile Special influences € million Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Effects on EBITDA -18 -9 -3 -117 -147 -3 - of which restructuring1 -2 -9 -3 -133 -147 -3 - of which other -16 16 Effects on Operating Results = EBIT -18 -9 -184 -263 -474 -3 - of which effects on EBITDA (see above) -18 -9 -3 -
Slide 33: T-Mobile Customer Summary - proforma
T-Mobile Customer Summary - proforma - '000 31/3/07 30/6/07 30/9/07 31/12/07 31/3/08 % y.o.y. Germany1 33.049 34.329 34.471 35.952 37.111 12,3% United Kingdom 2 16.734 16.786 17.005 17.311 17.124 2,3% Poland 12.373 12.525 12.722 12.998 12.986 5,0% Austria 3.139 3.148 3.227 3.273 3.287 4,7% Czech Rep
Slide 34: T-Mobile Customer Summary
T-Mobile Customer Summary '000 31/3/07 30/6/07 30/9/07 31/12/07 31/3/08 % y.o.y. Germany1 33.049 34.329 34.471 35.952 37.111 12,3% United Kingdom 2 16.734 16.786 17.005 17.311 17.124 2,3% Poland 12.373 12.525 12.722 12.998 12.986 5,0% Austria 3.139 3.148 3.227 3.273 3.287 4,7% Czech Republic 5.109 5
Slide 35: T-Mobile Germany (TMD)
T-Mobile T-Mobile Germany (TMD) '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 1 33.049 34.329 34.471 35.952 35.952 37.111 12,3% - Contract 15.343 15.520 15.669 16.054 16.054 16.264 6,0% - Prepay 17.705 18.808 18.802 19.897 19.897 20.846 17,7% Net adds 1.651 1.280 142 1.
Slide 36: T-Mobile: New attractive voice rates. Germany
T-Mobile: New attractive voice rates. Germany. New T-Mobile voice rates (post-paid) Good Better Best Max Max S Max M Max L Excludes mobile EUR 14.95 / month EUR 29.95 / month EUR 79.95 / month phone* 0 cents / min. 0 cents / min. 0 cents / min. to German fixed network to German fixed network and T-
Slide 37: T-Mobile: New Relax Plans. Germany
T-Mobile: New Relax Plans. Germany. in € Relax 50 Relax 200 Relax 1000 1 . Monthly charge Relax (with handset) 19.95 39.95 69.95 Relax (without handset) 9.95 29.95 59.95 2. Voice and Message includes national voice minutes 50 200 1000 (on-net, fixed net, other mobile networks) Voicemail included Bud
Slide 38: T-Mobile: New Max and MyFaves Plans. Germany
T-Mobile: New Max and MyFaves Plans. Germany. in € Max S Max M Max L Max plans Max 14.95 29.95 79.95 Max (with handset) 24.95 39.95 89.95 Rates per minute national: -mobile to national fixed net 0.00 0.00 0.00 -on-net / Voicebox 0.29 0.00 0.00 -other mobile networks 0.29 0.29 0.00 SMS (on-net, other
Slide 39: iPhone - exclusively from T-Mobile and Apple. Germany
iPhone - exclusively from T-Mobile and Apple. Germany. Complete S only until 30.06.2008 in € Complete S Complete M Complete L Complete XL Monthly charge 29.00 49.00 69.00 89.00 EDGE data flat rate 500 MB inclusive W-LAN data flat rate ---------- inclusive Visual voicemail (on-net) inclusive Inclusiv
Slide 40: T-Mobile: Aggressive data flat rates with web'n'walk
T-Mobile: Aggressive data flat rates with web'n'walk. Germany. Good Better Best New New Starter Time 300 HandyFlat June Cell phone 9ct/min. 4,95€ 9,95€ 2008 Worry-free roaming No network differentiation New New New 75% price reduction DayFlat 300MB L flat rate Laptop 4,95 €/day €19.95 34,95€ ===!"§
Slide 41: Data Options/Plans. Germany
Data Options/Plans. Germany. MyFaves, Relax MyFaves, Relax MyFaves, Relax (excl. Relax XL), Basix, (excl. Relax XL), Basix, (excl. Relax XL), Basix, Mobile Plans: Max, CombiCard Relax Max, CombiCard Relax Max, CombiCard Relax Data options web'n'walk Starter web'n'walk Time 300 web'n'walk Handy Flat
Slide 42: Data Options/Plans Germany
Data Options/Plans Germany. Web'n'walk Surfoption 1: web'n'walk Day Flat 2, 3 web'n'walk M2 web'n'walk L2 (Speed up to 7.2 Mbit/s downlink) (Speed up to 1.4 Mbit/s uplink) Monthly charge data option (4,95 per day) 19,95 34,95 Additional data volume (per MB) --------- --------- Data volume (per month
Slide 43: T-Mobile USA
T-Mobile T-Mobile USA '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 1 26.020 26.877 27.734 28.685 28.685 30.798 18,4% - Contract 21.937 22.624 23.181 23.914 23.914 25.721 17,2% - Prepay 4.083 4.253 4.553 4.771 4.771 5.077 24,3% Net adds 980 857 857 951 3.644 981 0,1% -
Slide 44: T-Mobile USA (USD)
T-Mobile T-Mobile USA USD Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue (million) 4.545 4.778 4.893 5.066 19.282 5.185 14,1% ARPU revenue (million) 3.890 4.088 4.225 4.257 16.460 4.455 14,5% Adj. EBITDA (million)2 1.226 1.386 1.413 1.327 5.352 1.447 18,0% Adj. EBITDA margin (total rev.)
Slide 45: Individual myFaves Plans
Individual myFaves Plans. sm Weekend/Night 1 Monthly charge Whenever Minutes Minutes myFaves Minutes2 myFaves 300 $ 39.99 300 Unlimited Unlimited myFaves 600 $ 49.99 600 Unlimited Unlimited myFaves 1000 $ 59.99 1000 Unlimited Unlimited myFaves 1500 $ 69.99 1500 Unlimited Unlimited myFaves 2500 $ 109
Slide 46: T-Mobile UK
T-Mobile T-Mobile UK '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 1 16.734 16.786 17.005 17.311 17.311 17.124 2,3% - Contract 3.821 3.893 3.937 3.880 3.880 3.861 1,0% - Prepay1 12.913 12.892 13.068 13.431 13.431 13.263 2,7% Net adds1 -171 51 219 306 406 -187 -9,4% - Co
Slide 47: T-Mobile UK (GBP)
T-Mobile T-Mobile UK '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 1 16.734 16.786 17.005 17.311 17.311 17.124 2,3% - Contract 3.821 3.893 3.937 3.880 3.880 3.861 1,0% - Prepay1 12.913 12.892 13.068 13.431 13.431 13.263 2,7% Net adds 1 -171 51 219 306 406 -187 -9,4% - C
Slide 48: Flext. New Standards of mobile Value
Flext. New Standards of mobile Value. up to 25% off line rental* Flext + web'n'walk Monthly 1 Monthly charge monthly charge Allowance Pure Minutes Pure Texts Flext 20 £ 20 now £ 15 £ 27.5 now £ 22.5 £ 34 170 minutes 340 texts Flext 25 £ 25 now £ 20 £ 32.5 now £ 27.5 £ 60 300 minutes 600 texts Flext
Slide 49: MyFaves Plans. UK
MyFaves Plans. UK. Monthly Allowance Monthly charge MyFaves Pure Minutes Pure Texts MyFaves 25 £ 25 unlimited 25 minutes 50 texts MyFaves 35 £ 35 unlimited 100 minutes 200 texts MyFaves 45 £ 45 unlimited 200 minutes 400 texts Calling costs once your inclusive minutes have been used up Any UK network
Slide 50: PTC (Poland)
T-Mobile PTC (Poland) '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 12.373 12.525 12.722 12.998 12.998 12.986 5,0% - Contract 4.746 4.914 5.122 5.409 5.409 5.599 18,0% - Prepay 7.627 7.611 7.600 7.590 7.590 7.388 -3,1% Net adds2 145 152 196 277 770 -12 n.a. - Contract 2
Slide 51: T-Mobile Austria
T-Mobile T-Mobile Austria '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 3.139 3.148 3.227 3.273 3.273 3.287 4,7% - Contract 1.943 1.965 2.061 2.133 2.133 2.173 11,8% - Prepay 1.196 1.183 1.166 1.141 1.141 1.114 -6,9% Net adds3 -41 9 79 47 93 14 n.a. - Contract3 -19 21 9
Slide 52: T-Mobile Czech Republic
T-Mobile T-Mobile Czech Republic '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 5.109 5.140 5.207 5.271 5.271 5.273 3,2% - Contract 1.915 2.014 2.132 2.228 2.228 2.293 19,7% - Prepay 3.194 3.125 3.075 3.044 3.044 2.980 -6,7% Net adds 60 31 68 64 222 2 -96,7% - Contract 1
Slide 53: T-Mobile Netherlands
T-Mobile T-Mobile Netherlands '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 2.592 2.638 2.639 4.889 4.889 5.166 99,3% - Contract 1.338 1.343 1.351 2.090 2.090 2.123 58,7% - Prepay1 1.254 1.295 1.288 2.799 2.799 3.043 n.m. Net adds 40 46 1 63 150 36 -10,0% - Contract1 1
Slide 54: T-Mobile Hungary
T-Mobile T-Mobile Hungary '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 4.478 4.517 4.628 4.853 4.853 4.928 10,0% - Contract 1.599 1.654 1.710 1.794 1.794 1.843 15,3% - Prepay 2.879 2.863 2.918 3.060 3.060 3.086 7,2% Net adds 47 39 111 225 422 75 59,6% - Contract 53 56
Slide 55: T-Mobile HR (Croatia)
T-Mobile T-Mobile HR (Croatia) '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 2.192 2.222 2.278 2.385 2.385 2.453 11,9% - Contract 589 614 641 685 685 720 22,2% - Prepay 1.603 1.608 1.637 1.700 1.700 1.733 8,1% Net adds 34 30 56 107 227 68 100,0% - Contract 35 24 27 44 1
Slide 56: T-Mobile Slovensko (Slovakia)
T-Mobile T-Mobile Slovensko (Slovakia) '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 2.223 2.226 2.307 2.367 2.367 2.335 5,0% - Contract 998 1.027 1.088 1.171 1.171 1.211 21,3% - Prepay 1.225 1.199 1.218 1.197 1.197 1.124 -8,2% Net adds2 21 4 80 61 166 -32 n.a. - Contra
Slide 57: T-Mobile Macedonia
T-Mobile T-Mobile Macedonia '000 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Customers (end of period) 955 1.002 1.066 1.213 1.213 1.224 28,2% - Contract 195 233 249 281 281 301 54,4% - Prepay 759 769 817 932 932 924 21,7% Net adds 10 47 64 147 268 12 20,0% - Contract 18 38 16 32 103 20 11,1% - Pre
Slide 58: Notes
Notes. ===!"§ Page 58
Slide 59: Notes
Notes. ===!"§ Page 59
Slide 60: Broadband/Fixed Network
Broadband/Fixed Network. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on
Slide 61: Broadband/Fixed Network. Adjusted for special factors
Broadband/ Fixed Network. Adjusted for special factors. millions of € Q4/06 FY/ 06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y Total revenue 6.117 24.515 5.832 5.655 5.626 5.577 22.690 5.382 -7,7% Domestic 5.433 21.835 5.146 4.948 5.002 4.982 20.078 4.830 -6,1% International 684 2.680 698 722 632 60
Slide 62: Broadband/Fixed Network. EBITDA reconciliation
Broadband/ Fixed Network. EBITDA reconciliation. millions of € FY/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Total revenue 24.515 5.832 5.655 5.626 5.577 22.690 5.382 Profit (loss) from operations = EBIT 3.356 976 929 947 398 3.250 909 Depreciation, amortization and - -3.839 -908 -926 -914 -927 -3.675 -
Slide 63: Broadband/Fixed Network. Unadjusted
Broadband/ Fixed Network. Unadjusted. millions of € Q4/06 FY/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y Total revenue 6.117 24.515 5.832 5.655 5.626 5.577 22.690 5.382 -7,7% Domestic 5.433 21.835 5.146 4.948 5.002 4.982 20.078 4.830 -6,1% International 684 2.680 698 722 632 602 2.654 564 -19,2%
Slide 64: Broadband/Fixed Network. Special factors
Broadband/ Fixed Network. Special factors. millions of € FY/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Effects on EBITDA -1.553 14 -50 -107 -702 -845 -96 Domestic -1.524 21 -245 -221 -697 -1.142 -101 of which personnel related -1.476 22 -208 -214 -626 -1.026 -8 International -29 -7 195 114 -5 297 5 of w
Slide 65: Key operational performance - Broadband
1 Broadband/ Fixed Network. Key operational performance - Broadband (excl. T-Online France/Spain). Thousands 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 y.o.y.% q.o.q.% 1/2/3/4 Broadband Lines in operation (total) 11.272 12.169 12.681 13.264 13.927 14.446 18,7% 3,7% of which Retail1 7.897
Slide 66: Key operational performance - Fixed-network lines
Broadband/ Fixed Network. Key operational performance - Fixed-network lines (excl. T-Online France/ Spain). Thousands 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 y.o.y.% q.o.q.% Fixed-network lines (total) 1 38.961 38.301 37.726 37.166 36.554 35.877 -6,3% -1,9% Domestic 33.192 32.605 32.08
Slide 67: Broadband/Fixed Network: International. Key financial figures
Broadband/ Fixed Network: International. Key financial figures. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 y.o.y.% 1/4 International (total) Total revenue 698 722 632 602 2.654 564 -19,2% Total adj. EBITDA 214 249 284 232 979 239 11,7% Total adj. EBITDA margin 30,7% 34,5% 44,9% 38,5% 36,9% 42
Slide 68: International. Key financial figures in local currency
Broadband/ Fixed Network: International. Key financial figures in local currency. millions Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 y.o.y.% 1/2 Magyar Telekom (MT) (HUF) Revenue 75.053 77.087 78.344 76.886 307.370 72.739 -3,1% Adj. EBITDA 31.507 32.550 33.616 30.652 128.325 31.596 0,3% Adj. EBITDA margin
Slide 69: Broadband/Fixed Network: Domestic. Revenue split
Broadband/ Fixed Network: Domestic.1 Revenue split. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 y.o.y Δ y.o.y.% 2 Domestic (total) 5.146 4.948 5.002 4.982 20.078 4.830 -316 -6,1% of which network communications 2.631 2.556 2.561 2.390 10.138 2.318 -313 -11,9% thereof narrowband access 1.946 1.
Slide 70: T-Home: Domestic. Call minutes and call revenues
T-Home: Domestic. Call minutes and call revenues.1 FY/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 y.o.y.% 2 Minutes (billions) Total 105.04 26.51 24.61 24.67 26.40 102.19 26.81 1,1% City/local 59.42 15.17 13.68 13.54 14.69 57.07 14.89 -1,8% Long distance 35.65 8.91 8.43 8.56 9.06 34.95 9.19 3,1% Internat
Slide 71: Broadband/Fixed Network. Personnel development
Broadband/ Fixed Network. Personnel development . Year end/quarter end Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 y.o.y.% 1/2 Number of employees (total) 100.434 98.459 95.698 93.486 93.486 96.687 -3,7% Domestic 4 81.386 80.293 78.598 76.990 76.990 80.941 -0,5% International (CEE)1/2/3 19.048 18.166 17.100
Slide 72: T-Home. Complete Packages
T-Home. Complete Packages1,2,3 Calltime Calltime XXL Local XXL Fulltime T-Net T-ISDN including city flat flat rate within up to 120 minutes up to 240 minutes rate Germany within Germany within Germany € 19.95 € 27.95 from € 25.95 from € 35.95 Cent/Minute Off peak 0/1.5 0 0 City Peak 0/3.1 0 0 Off pe
Slide 73: T-Home. Complete Packages
T-Home. Complete Packages1,2,3 Call & Surf Start 6 Call & Surf Basic (2) Call & Surf Basic (2) Call & Surf Basic (3) Call & Surf Comfort Call & Surf Comfort Plus bandwidth DSL T-Net T-ISDN bandwidth DSL bandwidth DSL Bandwidth DSL 1 Mbit/s, voice up to 120 minutes up to 240 minutes 2 Mbit/s, flat ra
Slide 74: T-Home. Complete Packages
T-Home. Complete Packages1,2,3 Entertain Basic Entertain Comfort Entertain Comfort Plus bandwidth DSL bandwidth DSL bandwidth DSL 16 Mbit/s, flat rate internet 16 Mbit/s plus, flat rate 16 Mbit/s plus, flat rate Internet usage and flat rate voice internet usage and flat usage and flat rate voice usa
Slide 75: Overview interconnection tariffs (excl. VAT)
Broadband/ Fixed Network. Overview interconnection tariffs (excl. VAT). Peak Peak Off-Peak Off-Peak Cent/min. (9:00-18:00), old (9:00-18:00), new1 (18:00-9:00), old (18:00-9:00), new1 Termination/Origination fees Local 0.59 0.52 0.40 0.36 Single transit 0.96 0.88 0.64 0.59 Double transit national 1.
Slide 76: T-Home. IPTV packages
T-Home. T-Home Entertain T-Home Entertain T-Home Entertain T-Home Entertain T-Home Premium IPTV packages. Comfort Comfort VDSL Comfort Plus Comfort Plus VDSL T-Home Premium VDSL Entertainment Included Access to Video on demand ● ● ● ● ● ● Basic TV channels ● ● ● ● ● ● TV archive of selected TV chann
Slide 77: T-Home - Tariffs system
T-Home - Tariffs system. Level I Level II Level III Level starter I package Level packageIII premium Triple - Entertain T- Home Entertain Entertain Play Classic Comfort Comfort Plus Premium from 60,84 € from € 49.95 from € 59.95 from € 69.95 Double - Call&Surf Call&Surf Call&Surf Call&Surf Play Star
Slide 78: Notes
Notes. ===!"§ Page 78
Slide 79: Notes
Notes. ===!"§ Page 79
Slide 80: Business Customers
Business Customers. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on spec
Slide 81: Business Customers. Adjusted for special factors
Business Customers. Adjusted for special factors. millions of €3 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 2.906 2.962 2.917 3.202 11.987 2.603 -10,4% of which: international 576 624 609 697 2.506 593 3,0% Net revenue 2.183 2.239 2.184 2.365 8.971 2.025 -7,2% EBITDA 261 280 291 230
Slide 82: Business Customers. EBITDA reconciliation
Business Customers. EBITDA reconciliation. millions of €1 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 2.906 2.962 2.917 3.202 11.987 2.603 -10,4% Profit (loss) from operations = EBIT (unadj.) 44 34 26 -427 -323 479 988,6% Depreciation, amortization and impairment - losses -217 -222 -2
Slide 83: Business Customers. Unadjusted
Business Customers. Unadjusted. millions of €1 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 2.906 2.962 2.917 3.202 11.987 2.603 -10,4% Net revenue 2.183 2.239 2.184 2.365 8.971 2.025 -7,2% EBITDA 261 256 243 -176 584 673 157,9% EBITDA margin 9,0% 8,6% 8,3% -5,5% 4,9% 25,9% -- Deprecia
Slide 84: Business Customers. Special factors
Business Customers. Special factors. millions of €1 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Effect on EBITDA -- -24 -48 -406 -478 467 -- of which restructuring provisions (EBITDA) -- -24 -48 -406 -448 467 -- of which restructuring provisions (EBIT) -- -24 -48 -406 -448 467 -- of which transfer
Slide 85: Business Customers Computing & Desktop Services
Business Customers Computing & Desktop Services. Computing & Desktop Services. Financial (millions of €)4 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 1.005 1.036 998 1.128 4.166 869 -13,5% Adj. EBITDA 173 219 200 149 741 163 -5,8% Adj. EBITDA margin 17,2% 21,1% 20,0% 13,2% 17,8% 18,8%
Slide 86: Business Customers Systems Integration
Business Customers Systems Integration. Systems Integration. Financial (millions of €)4 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 415 415 408 473 1.711 414 -0,2% Adj. EBITDA 14 11 23 15 63 12 -14,3% Adj. EBITDA margin 3,4% 2,7% 5,6% 3,2% 3,7% 2,9% -- Capex1 7 10 7 16 40 6 -14,3% Cas
Slide 87: Business Customers Telecommunications
Business Customers Telecommunications. Telecommunications. Financial (millions of €)3 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 1.486 1.511 1.511 1.601 6.110 1.320 -11,2% Adj. EBITDA 74 50 68 66 258 31 -58,1% Adj. EBITDA margin 5,0% 3,3% 4,5% 4,1% 4,2% 2,3% -- Capex1 52 39 68 84 243
Slide 88: Business Customers. T-Systems Deals
Business Customers. T-Systems Deals. Volume Duration (in Strategic Project Description Industry (€ millions) months) signed in importance IT Outsourcing; taking over infrastructure and Royal Dutch IT professionals of Shell’s global data centers, Shell (NL): including three centers in the Netherlands
Slide 89: Notes
Notes. ===!"§ Page 89
Slide 90: Notes
Notes. ===!"§ Page 90
Slide 91: GHS
GHS. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 8 Croatia 55 EBITDA reconciliation 9 Slovakia 56 Unadjusted income statement 10 Macedonia 57 Special factors in the income statement 11 Details on special factors 12
Slide 92: Group Headquarters & Shared Services. Adjusted for special factors
Group Headquarters & Shared Services. Adjusted for special factors. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 952 988 966 962 3.868 884 -7,1% Net revenue 89 102 103 129 423 150 68,5% EBITDA 67 -21 -37 -117 -108 -25 n.a. of which Vivento -122 -90 -88 -121 -421 -82 32,8%
Slide 93: Group Headquarters & Shared Services. EBITDA reconciliation
Group Headquarters & Shared Services. EBITDA reconciliation. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Total revenue 952 988 966 962 3.868 884 Profit (loss) from operations = EBIT -250 -215 -401 -1.107 -1.973 -277 Depreciation, amortization and - impairment losses -182 -189 -311 -285 -967 -1
Slide 94: Group Headquarters & Shared Services. Unadjusted
Group Headquarters & Shared Services. Unadjusted. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 % y.o.y. Total revenue 952 988 966 962 3.868 884 -7,1% Net revenue 89 102 103 129 423 150 68,5% EBITDA -68 -26 -90 -822 -1.006 -100 -47,1% of which: Vivento -273 -79 -103 -299 -754 -141 48,4% EBITDA m
Slide 95: Group Headquarters & Shared Services. Special factors
Group Headquarters & Shared Services. Special factors. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Effect on EBITDA -135 -5 -53 -705 -898 -75 of which: transfer payments to Vivento 0 1 1 41 43 0 Provisions for staff reduction, severance payments and others -135 -6 -59 -746 -946 -75 Effects on
Slide 96: Vivento. Results of efficient processes
Vivento. Results of efficient processes. End of period 1 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 Transfers to Vivento (cumulative) 37.700 38.000 38.200 38.600 39.300 Left Vivento (cumulative) 24.200 26.900 27.500 28.300 30.900 of which left the DT Group (cumulative) 14.000 16.400 16.800 17.400
Slide 97: Glossary and Disclaimer
Glossary and Disclaimer. In addition to financial information presented in accordance with IFRS, this presentation contains non-GAAP financial measures, such as ... which is defined as ... EBIT Abbreviation for EARNINGS BEFORE INTEREST AND TAXES. EBIT is equivalent to the P&L-line "Operating Results