Slide 1: Creating a Leading Digital Telco in Germany
Creating a Leading Digital Telco in Germany 26 August 2013 Telefónica, S.A. Investor Relations
Slide 2: Disclaimer
Disclaimer This document contains statements that constitute forward looking statements about Telefónica Group (going forward, “the Company” or Telefónica) including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations which ma
Slide 3: Transaction Summary
TELEFÓNICA Transaction Summary • Total consideration of €5bn in cash and a 20.5% stake in New Telefónica Deutschland: •1 Acquisition of E-Plus by Telefónica Deutschland for a combination of cash and a stake in New Telefónica Deutschland (i) €3.70bn of cash Key Terms (ii) 24.9% stake in enlarged Tele
Slide 4: Transaction Structure
Transaction Structure Transaction Summary Telefónica Public KPN Total consideration of €5.0 bn in cash and a 20.5% stake; Telefónica to Pre-Transaction receive a call option from KPN enabling Structure 76.8% 23.2% 100% Telefónica to get to 65% ownership Telefónica E-Plus Deutschland Two Step Structu
Slide 5: Valuation references
Valuation references €bn Implied Offer Value Based on Telefonica Deutschland's € Bn Undisturbed Multiple Synergies 5.00 5.50 5.00 - 5.50 16.95 Pro Forma New Tef De 16.45 16.95 (0.94) 16.45 Equity Value Cash 5.00 5.00 7.19 20.5% 3.37 3.48 Stake Implied Value 8.37 8.48 Multiples 5.21 EBITDA 7.5x 7.6x
Slide 6: Financing Without Increasing Leverage
Financing Without Increasing Leverage • Rights Issue in New Telefónica Deutschland of €3.70bn. Telefónica subscribes pro-rata to its stake of 76.8%, €2.84bn Telefónica Cash Commitment • €1.30bn to KPN for 4.4% stake and call option for up to 2.9% in New Telefónica Deutschland • Total financing requi
Slide 7: Expected Transaction Timetable
Expected Transaction Timetable KPN EGM 26 August 13 Announcement of the agreement with America Movil: Mid 2014 – Unanimous support by KPN Supervisory Completion of merger Board Key Milestones – Irrevocable commitment from America Movil to support the transaction in KPN´s EGM Q2 2014 Regulatory appro
Slide 8: Conclusion
Conclusion • Decisively increased execution certainty: Unanimous KPN board approval and irrevocable commitment from America Movil to vote in favour of the transaction at KPN’s EGM • Reinforces Telefónica’s geographical diversification towards Germany, the largest mobile market in Europe and the most
Slide 9: Investor Relations Telefónica, S.A.
Investor Relations Telefónica, S.A.