Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q1 2007 Earnings Presentation
23 slides from Deutsche Telekom's earnings presentation, May 10, 2007
Slide 1: Q1 2007 Conference call
Q1 2007 Conference call. Deutsche Telekom. May 10, 2007.
Slide 2: Disclaimer
Disclaimer. This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They include statements as to market potential, the “2007 Guidance” statements as well as our dividend outlook. They are generally identified
Slide 3: Q1/2007 Highlights
Q1/2007. Highlights. René Obermann
Slide 4: Q1 2007 Highlights
Q1 2007 Highlights. Group revenue up 4.1% to €15.5 billion Strong international revenue growth with 15.5% – international adj. EBITDA growth at 17.5% Adj. group EBITDA down 5.8% to €4.7 billion Reported net income down 57.9% to €0.5 billion (adj. net income down 42.2% to €0.6 billion) Cost
Slide 5: Management update: Focus, fix and grow
Management update: Focus, fix and grow. Build the ICT Improve com- Mobilize Grow abroad business petitiveness internet and with mobile in Germany Web 2.0 trend With a partner Q1 achievements: Domestic BBFN: 42% retail market share of broadband growth Strong growth of new bundled products: +2.5
Slide 6: Management update: Focus, fix and grow
Management update: Focus, fix and grow. Improve com- Build the ICT Mobilize petitiveness Grow abroad business internet and in Germany with mobile Web 2.0 trend (and CEE) With a partner Q1 achievements: 21.1% yoy international service revenue growth Strong contract net adds: 726k US 106k UK
Slide 7: Management update: Focus, fix and grow
Management update: Focus, fix and grow. Improve com- Build the ICT Mobilize petitiveness Grow abroad business internet and in Germany with mobile Web 2.0 trend (and CEE) With a partner Q1 achievements: New attractive mobile data tariffs launched at CeBIT 2.2 million web’n’walk customers in Europ
Slide 8: Management update: Focus, fix and grow
Management update: Focus, fix and grow. Improve com- Build the ICT Mobilize petitiveness Grow abroad business internet and in Germany with mobile Web 2.0 trend (and CEE) With a partner Process underway: Phase 1: information memorandum prepared Phase 2: shortlist of partners drawn up Q1 2007 Co
Slide 9: BBFN: Successful DSL push
BBFN: Successful DSL push. DSL retail net adds (in ‘000) Development in Q1/07 T-Com and resale: 572 785,000 DSL net adds T-Com: 572,000 DSL retail net adds Ä best quarter ever! 186 Broadband market in Germany 83 has shown strongest growth ever in Q1 2007 Strong growth of new bundled Q1 Ø Q
Slide 10: BBFN: DSL invest impacts domestic EBITDA
BBFN: DSL invest impacts domestic EBITDA. Domestic revenue (€ billion) International revenue (€ billion) 5.5 0.66 0.70 5.1 -5.8% +5.6% Domestic adj. EBITDA (€ billion) International adj. EBITDA (€ billion) 2.1 1.7 0.23 0.21 -19.2% -5.3% Q1 2006 Q1 2007 Q1 2007 Conference call Investor Relations May
Slide 11: Mobile: Strong international growth
Mobile: Strong international growth. International service revenues (€ billion) International customers (million) 5.7 76.2 4.71 69.02 +21.1% +10.4% International adj. EBITDA (€ billion) International cash contribution3 (€ billion) 1.1 1.8 1.51 0.61 +85.3% +23.4% 1 Excluding PTC and tele.ring. Q1 200
Slide 12: T-Mobile USA: Maintaining excellent momentum
T-Mobile USA: Maintaining excellent momentum. Total revenue (US$) up 12.7% Service revenues (US$ billion) 3.9 Adj. EBITDA: $1.226 billion, up 11.2% 3.3 +18.0% Strong ARPU: Blended: $51, up from $50 Contract: $57, up from $54 Non-voice: $7.50, up 34% yoy Contract net adds (thousands) 773
Slide 13: T-Mobile UK: Service revenues up 20%
T-Mobile UK: Service revenues up 20%. Service revenues (€ billion) Total revenue up 12.9% 1.1 Strong ARPU: 0.9 +20.1% Blended: €30, up from €26 Contract: €66, up from €63 Adj. EBITDA: €224 million, up 34.9% Adj. EBITDA margin (%) Contract churn at 1.9% (from 2.2%) 19.2 16.1 Strong cont
Slide 14: T-Mobile Germany: Margin pressure from higher market invest
T-Mobile Germany: Margin pressure from higher market invest. Service revenues (€ billion) Strong contract net adds: 251k 1.80 Contract MOU up more than 11% yoy 1.75 -3.0% Service revenues: -3.0% yoy Q1/07 vs. -7.8% yoy Q4/06 Increased market invest due to: Adj. EBITDA margin (%) Higher tot
Slide 15: Mobile summary: Double-digit growth
Mobile summary: Double-digit growth. Service revenues (€ billion) Customers (million) 6.51 7.5 109.2 99.22 +14.5% +10.1% Adj. EBITDA (€ billion) Cash contribution3 (€ billion) 2.31 2.5 1.6 1.21 +11.4% +36.6% 1 Excluding PTC and tele.ring. Q1 2006 Q1 2007 2 Including PTC and tele.ring. 3 Adj. EBITDA
Slide 16: Business Customers: International revenue growth
Business Customers: International revenue growth. Internal revenues (€ billion) International revenues (€ billion) 0.9 0.6 0.7 0.5 -15.9% 18.4% External revenues (€ billion) Adj. EBITDA (€ million) 2.20 2.18 357 261 -0.9% -26.9% Q1 2006 Q1 2007 Q1 2007 Conference call Investor Relations May 10, 2007
Slide 17: Asset-disposal program
Asset-disposal program. Progress asset-disposal program: DFMG €0.3 billion cash-in from sale of real US Towers estate in Q1, further cash-in in Q2 Club Internet 9 Remaining Sireo stake to be sold subject to competition authorities Ya.com Club Internet sale concluded Media & Broadca
Slide 18: Personnel
Personnel. 3,200 domestic headcount reduction1 in Q1 (15,300 employees since start) Of which 2,500 early and partial retirement and severance programs Of which 700 turnover and regular retirement 1,300 new hires in service and sales 1,700 net domestic headcount reduction in Q1 since YE 200
Slide 19: 2007 Guidance: We reconfirm our guidance
2007 Guidance: We reconfirm our guidance. Moderate revenue growth Adj. group EBITDA: around €19 billion Free cash flow: around €6 billion (incl. real estate sales) Q1 2007 Conference call Investor Relations May 10, 2007, Page 19
Slide 20: Q1/2007 Financials
Q1/2007. Financials. Dr. Karl-Gerhard Eick
Slide 21: Q1 2007 – Free cash flow impacted by restructuring payments
Q1 2007 – Free cash flow impacted by restructuring payments. € billion Q1/07 Q1/06 Cash Flow 4.4 4.8 Change in working capital and accruals - 2.1 - 1.3 Of which restructuring payments - 0.7 0.0 Taxes and dividends 0.2 - 0.2 Cash generated from operations 2.5 3.3 Net interest payment - 0.5 - 0.5 Net
Slide 22: Q1 2007 – Net income impacted by higher D&A & net fin. exp.
Q1 2007 – Net income impacted by higher D&A & net fin. exp. € billion Q1/07 Q1/06 Adj. Q1/07 Adj. Q1/06 EBITDA 4.54 4.89 4.68 4.97 Depreciation and amortization - 2.75 - 2.57 - 2.75 - 2.56 Net financial expense - 0.75 - 0.55 - 0.73 - 0.75 - of which net interest expense - 0.66 - 0.66 - 0.66 - 0.66 E
Slide 23: Q1 2007 – Further improvement in balance sheet ratios
Q1 2007 – Further improvement in balance sheet ratios. € billion 31.03.2007 31.12.2006 Balance sheet total 129.4 130.2 Shareholders‘ equity 50.0 49.7 Net debt 39.1 39.6 Net debt/adj. EBITDA n/a 2.04x Gearing 0.78x 0.80x Equity ratio1 36.2% 35.8% 1 Excl. dividend payout. Q1 2007 Conference call Inves