Slide 1: Deutsche Telekom Q1/14 Results
DEUTSCHE TELEKOM Q1/14 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 Q1/14
REVIEW Q1/14 7 | ase @@ LIFE IS FOR SHARING.
Slide 4: Leading Telco: Strategic and Financial Key Achievements in Q1
LEADING TELCO: Strategic and Financial KEY ACHIEVEMENTS in Q1 Strategic achievements All-IP migration: Voice IP migration in Macedonia accomplished, Germany with 499k migrations in Q1 LTE and fiber roll out running at full speed in Germany Clear ownership structure in Czech Republic enables in
Slide 5: Q1/14: Key Figures
Q1/14: KEY FIGURES Q1 € mn 2013 2014 Change Revenue 13,785 14,894 8.0% Adj. EBITDA 4,288 4,121 -3.9% Adj. net profit 767 587 -23.5% Net profit 564 1,817 222.2% Adj. EPS (in €) 0.18 0.13 -27.8% EPS (in €) 0.13 0.41 215.4% Free cash flow1 1,038 983 -5.3% Cash capex2 2,087 2,065 -1.1% Net debt (in € bn
Slide 6: Germany: continued strong revenue trend and margin
GERMANY: continued strong revenue trend and margin Revenue Adj. EBITDA and margin (in %) € mn Mobile Core fixed Wholesale services Others € mn 40.5 40.6 41.9 40.7 35.9 -1.5% -1.1% 5,566 5,565 5,670 5,634 5,483 2,255 2,279 2,375 2,027 2,230 1,842 1,925 2,006 1,957 1,871 +1.6% Q1/13 Q2/13 Q3/13 Q4/13
Slide 7: Germany Fixed: Strong performance in TV and fiber
GERMANY Fixed: Strong performance in TV and fiber German broadband market1 Entertain customers mn -14k -47k -22k -7k Cable 000 +10.8% 28.2 28.3 28.5 28.7 29.0 +42 +43 +56 +78 DSL Competitors 2,078 2,121 2,177 2,255 4.6 4.7 4.9 5.1 5.3 2,036 11.2 11.2 11.2 11.2 11.3 DT 12.443 12.430 12.383 12.360 12.
Slide 8: Germany fixed: revenue not yet stabilized despite upsell
GERMANY fixed: revenue not yet stabilized despite upsell Fixed network revenue (core fixed and Wholesale) fixed revenues (fixed line) € mn -2.5% € mn -3.0% TV 3,425 3,371 3,405 3,408 3,339 1,864 1,856 1,835 1,821 1,809 BB 233 239 241 244 251 Voice 1,078 1,075 1,065 1,057 1,046 1,864 1,856 1,835 1,82
Slide 9: Germany mobile: Returning to service revenue growth
GERMANY mobile: Returning to service revenue growth German mobile market service revenue1 Contract Net adds +24.7% € mn E-Plus O2 Vodafone Telekom 000 638 Business 470 551 441 434 129 Consumer -2.0% 35 72 107 67 4,791 4,843 509 443 4,722 4,717 4,629 406 367 397 714 735 752 759 731 748 765 Q1/13 Q2/1
Slide 10: Germany: Integrated Network Rollout and All-IP Migration fully on track
germany: Integrated Network Rollout and All-IP Migration fully on track INS– STATUS LTE ROLLOUT INS– STATUS FIBEr ROLLOUT1 Outdoor Pop Coverage (%) 85 Coverage % 65 74 50 34 38 Q1/13 Q1/14 Target 2016 Q1/13 Q1/14 Target 2016 STATUS IP accesses (retail) STATUS IP accesses (Retail) Target: mn +117% 10
Slide 11: TMUS: record quarter in customer additions
TMUS: record quarter in customer additions Revenue and service revenue Net additions +32.9% US-$ mn Total revenue in 000 1,645 2,391 579 1,130 1,023 +48.8% Service revenue Total net adds 6,305 6,764 6,919 6,959 Branded: Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 4,678 3,908 4,624 5,013 5,018 5,193 Postpaid -19
Slide 12: Europe: Organic Revenue and Adj. EBITDA trends
EUROPE: ORGANIC REVENUE AND ADJ. EBITDA trends Revenue as reported Organic Revenue development € mn -6.5% € mn -2.6% 3,343 -97 3,208 3,125 3,343 3,435 3,440 3,486 3,125 -38 87 -61 -109 Q1/13 Cons./ FX Trad. Mobile Growth Q1/14 Decons. Telco & Regulation areas1 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Other Adj
Slide 13: Europe: Continued growth in mobile and fixed key areas
EUROPE: CONTINUED GROWTH IN MOBILE AND FIXED KEY AREAS Pockets of growth – broadband and TV1 Net adds – broadband and TV1 mn broadband accesses TV customers in 000 broadband net adds TV net adds 102 105 4.81 4.87 4.94 5.01 5.07 68 75 2.97 3.05 3.40 3.50 3.56 61 76 70 70 58 55 Q1/13 Q2/13 Q3/13 Q4/13
Slide 14: Europe: Revenue and cost transformation ongoing
EUROPE: REVENUE AND COST TRANSFORMATION ONGOING Revenue transformation Technology and Cost transformation Growth Areas1 Connected Home share IP share of EU fixed FTEs in 000 share of total revenues of fixed revenues network access lines (end of period) +3pp +2pp +10pp -8.6% 22% 25% 21% 23% 29% 58 53
Slide 15: Systems Solutions: Revenue development in line with outlook
SYSTEMS SOLUTIONS: Revenue development in line with outlook. Adj. ebitda trends to improve in h2 T-systems financials as reported Revenue Market Unit € mn total revenue Adj. opex Adj. ebitda € mn -174 -146 -6.7% -30 1,800 1,781 1,761 1,902 1,679 2,226 2,052 2,099 1,953 168 138 Q1/13 Q1/14 Q1/13 Q1/1
Slide 16: Financials: Q1/14 FCF on track for FY guidance
FINANCIALS: q1/14 FCF on track for fy guidance Adj. net income ROCE development3 -23.5% +4.1pp € mn % 767 9.3 -167 587 -9 -123 139 -20 5.2 Q1/13 adj. Financial D&A Taxes Minorities Q1/14 Q1/13 NOPAT NOA Q1/14 EBITDA result Free cash flow Net debt development -5.3% € mn € bn 1,038 983 39.1 -85 22 8 -
Slide 17: Financials: Balance sheet remains strong
FINANCIALS: BALANCE SHEET Remains strong € bn 31/03/2013 30/06/2013 30/09/2013 31/12/2013 31/03/2014 Balance sheet total 108.8 116.1 115.3 118.1 117.3 Shareholders’ equity 31.0 31.3 32.0 32.1 32.8 Net debt 37.1 41.4 39.7 39.1 38.0 Net debt/Adj. EBITDA1 2.1 2.4 2.3 2.2 2.2 Equity ratio 28.5% 26.9% 27
Slide 18: 2014 Key Priorities
2014 KEY Priorities Execute on Strategy BEST INTEGRATED WIN WITH LEAD IN CUSTOMER IP NETWORKS PARTNERS BUSINESS EXPERIENCE 2014 priorities Full speed INS roll-out Continue LTE roll-out to 250 Drive IP migration with full speed. Implementation of “T-Systems Migrate around 3 million customer
Slide 19: 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: 19
Slide 20: Thank you!
THANK YOU!