Slide 1: Deutsche Telekom Q2/13 Results
DEUTSCHE TELEKOM Q2/13 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, de
Slide 3: Review Q2 2013
REVIEW Q2 2013
Slide 4: Q2 2013 Key Achievements: TM US Returns to Growth – Germany with Rock Solid Results
Q2 2013 KEY ACHIEVEMENTS: TM US RETURNS TO GROWTH – GERMANY WITH ROCK SOLID RESULTS Growth in key areas: 1,382k mobile contract net adds, 121k TV net adds, 44k broadband net adds. GROUP Revenue grows 5.4% to 15.2 billion € driven by first time consolidation of MetroPCS. Organic revenue growth1)
Slide 5: Q2 2013: Key Figures
Q2 2013: KEY FIGURES Q2 H1 € bn 2012 2013 Change 2012 2013 Change Revenue 14,379 15,157 5.4% 28,811 28,942 0.5% Adj. EBITDA 4,701 4,417 -6.0% 9,183 8,705 -5.2% Adj. net profit 822 810 -1.5% 1,408 1,577 12.0% Net profit 482 530 10.0% 1,027 1,094 6.5% Adj. EPS (in €) 0.19 0.19 0.0% 0.33 0.37 12.1% EPS
Slide 6: Germany: Revenue Trends Improved – Adj. EBITDA Margin at 40.6%
GERMANY: REVENUE TRENDS IMPROVED – ADJ. EBITDA MARGIN AT 40.6% Revenues Adj. EBITDA and adj. EBITDA-margin (in %) € mn € mn 41.9 41.9 40.5 40.6 Mobile Core fixed Wholesale services Others 36.1 -0.8% -2.9% 5,736 5,731 2,348 2,401 2,074 2,255 2,279 5,610 5,566 5,565 1,852 1,958 1,987 Q2/12 Q3/12 Q4/12
Slide 7: Germany: Fixed – Strong Fiber Uptake - Line Losses Reduced
GERMANY: FIXED – STRONG FIBER UPTAKE - LINE LOSSES REDUCED German broadband market1) Average revenue per access growing in mn 27.6 27.7 27.9 28.2 28.4 Cable in € 25.7 25.8 25.9 26.1 26.2 TP 3.9 4.1 4.3 4.6 4.8 DP DSL Competitors 38 38 38 39 39 11.3 11.1 11.1 11.2 11.2 DT 32 32 32 32 32 SP 17 17 17 1
Slide 8: Germany: Return to Underlying Mobile Service Revenue Growth
GERMANY: RETURN TO UNDERLYING MOBILE SERVICE REVENUE GROWTH OUTPERFORMING COMPETITION IN Q2/13 German mobile market service revenue TD mobile service revenue excl. MTR cut € mn E-Plus O2 Vodafone Telekom +1.0% 1,690 1,749 1,680 1,628 1,706 -3.4% 33 4,996 5,114 MTR 4,965 4,825 4,722 791 809 782 714 7
Slide 9: TMUS: Significant Improvement in Customer Metrics and Postpaid Churn
TMUS: SIGNIFICANT IMPROVEMENT IN CUSTOMER METRICS AND POSTPAID CHURN Revenue and service revenue Net additions US-$ mn +8.4% in 000 1,130 Total revenue 160 61 579 Service revenue Total net adds +28.8% -205 4,897 4,916 4,678 6,305 Branded: Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 4,894 4,266 4,146 4,005 3,908 4
Slide 10: TMUS: Drivers of Improved Customer and Service Revenue Trends
TMUS: DRIVERS OF IMPROVED CUSTOMER AND SERVICE REVENUE TRENDS Underlying key figures Strong growth in total revenue driven by high smartphone sales US-$ mn Total Revenue: +12.5% 5 75% 86% 100 71% 6,305 4.3 50 4,894 4,678 798 Metro as % of devices 2.1 2.2 5,507 0 0 Smartphones sold (in millions) Q2/1
Slide 11: Europe: Strong Performance in Growth Areas – Slightly Improved Financial Trends
EUROPE: STRONG PERFORMANCE IN GROWTH AREAS – SLIGHTLY IMPROVED FINANCIAL TRENDS Revenue Pockets of growth – broadband and TV3 € mn -4.5% mn broadband accesses 3,583 TV customers -101 60 3,420 -131 18 -5 -4 4.87 4.92 5.01 5.07 5.13 2.76 2.83 2.94 3.01 3.09 Q2/12 Trad. Telco Mobile Growth Old Telco De
Slide 12: Europe: Commercial and Technology Initiatives Driving Revenue and Cost Transformation
EUROPE: COMMERCIAL AND TECHNOLOGY INITIATIVES DRIVING REVENUE AND COST TRANSFORMATION Revenue transformation Technology and Cost transformation Growth Areas1 Connected Home share All-IP share of EU fixed FTEs share of total revenues of fixed revenues network access lines (end of period) +2pp +2pp +9
Slide 13: EE: Adj. EBITDA Margin Improvement and Strong Postpaid Net Adds
EE: ADJ. EBITDA MARGIN IMPROVEMENT AND STRONG POSTPAID NET ADDS SUPPORTED BY ACCELERATING 4G DEMAND Mobile Service Revenue Postpaid net adds £ mn -4.4% 0.0% 250k 201k 216k -65 48 -48 150k 166k 1,486 1,421 1,421 Q2/12 Regulation Q2/12 ex Postpaid Prepaid Q2/13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Regulation
Slide 14: Systems Solutions: Ongoing Adj. EBIT Margin Improvement
SYSTEMS SOLUTIONS: ONGOING ADJ. EBIT MARGIN IMPROVEMENT Revenue Another strong quarter in regard to order entry with €1,983 million driven by deals such as € mn SBB, KONE 2,486 2,829 Revenue down (-8.6%) driven by lower revenue at Market Unit 2,245 2,319 2,273 1,929 2,127 -2.3% Telekom IT (-30
Slide 15: Financials: Q2 FCF and Net Income
FINANCIALS: Q2 FCF AND NET INCOME Free cash flow Q2/13 Adj. net income Q2/13 € mn € mn -33.5% -1.5% 1,668 822 810 -276 92 0 1,109 -284 -443 160 289 -109 Q2/12 Cash gen. Capex (excl. Other Q2/13 Q2/12 adj. EBITDA Financial D&A Taxes Minorities Q2/13 from spectrum) result operations Cash Capex (excl
Slide 16: Financials: H1/13 ROCE and Adj. EPS Improved
FINANCIALS: H1/13 ROCE AND ADJ. EPS IMPROVED ROCE development H1/13 Adj. EPS development H1/13 in % € per share +0.6pp +11.9% 4.9 0.33 0.37 4.3 -0.02 0.02 -0.11 0.15 0.00 H1/12 NOPAT NOA H1/13 H1/12 adj. EBITDA Financial D&A Taxes Minorities H1/13 result Drivers of ROCE development Net operating p
Slide 17: Financials: Net Debt Increase Due to Metro
FINANCIALS: NET DEBT INCREASE DUE TO METRO Net debt development Q2/13 € mn +11.5% 37,119 41,374 2,015 3,373 -24 -1,109 Q1/13 Free cash flow Dividend (incl. MetroPCS Other Q2/13 minorities) Q2 marks peak net debt for this year due to dividend payment and MetroPCS consolidation FCF and contributio
Slide 18: Financials: Balance Sheet – Impacted by Metro Transaction
FINANCIALS: BALANCE SHEET – IMPACTED BY METRO TRANSACTION € bn 30/06/2012 30/09/2012 31/12/2012 31/03/2013 30/06/2013 Balance sheet total 121.0 108.2 107.9 108.8 116.1 Shareholders’ equity 37.9 30.4 30.5 31.0 31.3 Net debt 41.0 39.0 36.9 37.1 41.4 Net debt/Adj. EBITDA1) 2.2 2.1 2.1 2.1 2.4 Equity ra
Slide 19: DT Group: US Guidance 2013 Changed to Foster Further Growth
DT GROUP: US GUIDANCE 2013 CHANGED TO FOSTER FURTHER GROWTH – REST OF GROUP UNCHANGED Guidance 2013 OLD Incl. 12 months MetroPCS1) Incl. 8 months MetroPCS2) Group adj. EBITDA ≈18.4 bn € ≈18 bn € New US Guidance 2013 Adj. EBITDA US 5.8 to 6.0bn US$ (4.6 to 4.7 bn €) 5.4 to 5.6bn US$ (4.2 to 4.3 bn €)
Slide 20: Q2 2013 Results Conference Call Q&A
DEUTSCHE TELEKOM Q2 2013 RESULTS CONFERENCE CALL Q&A Questions can be asked via the telephone conference call: 0800 182 6766 0800 028 0471 +1 866 306 3455 +49 69 403 59 619 If you want to ask a question, please press “*1”. If you want to cancel your question, please press “#”.
Slide 21: Further Questions Please Contact the IR Department
FURTHER QUESTIONS PLEASE CONTACT THE IR DEPARTMENT Investor Relations Phone +49 228 181 - 8 88 80 E-Mail investor.relations@telekom.de For further information please visit www.telekom.com/investors IR webpage: IR twitter account: IR youtube playlist:
Slide 22: Thank You!
THANK YOU!