Slide 1: Deutsche Telekom Q3 2021 results
Deutsche Telekom Q3 2021 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, dep
Slide 3: CMD 2021 targets: accelerated delivery on strategic priorities
CMD 2021 targets accelerated delivery on strategic priorities Organic growth Capital allocation/portfolio Shareholder value Commercial growth Decisive steps towards TMUS majority Adj. EPS taken • 5 mn new postpaid subs ytd • +13% adj. EPS year • 0.5 mn new broadband subs ytd • +5.2pp to 48.4%2 to da
Slide 4: 2021 year to date strong organic adj. EBITDA AL growth
2021 year to date strong organic adj. EBITDA AL growth Adj. EBITDA AL (Organic growth): +3.0% Adj. EBITDA AL (Reported)2 9M 2021 Reported growth € mn Total: Revenue +8.8% TMUS € 28,323 mn 1.9%1 +€329 mn Adj. EBITDA AL +8.7% GER 7,115 Adj. EBITDA AL 3.7% +4.7% (excl. US) +€256 mn Net profit +49.0% EU
Slide 5: Networks leading with 5G, FTTH well on track
Networks leading with 5G, FTTH well on track Fiber networks 5G TM US 5G ex US Fiber homes1 +1.2 Extended range2 +28 Germany +20 mn mn POPs % of POPs 49.6 50.8 280 308 87 13.7 14.3 67 35.9 36.5 YE/20 YTD YE/20 YTD YE/20 YTD FTTH (1Gbps) 5G TM US GER Fiber homes Ultra capacity 5G2 +1.8 +84 • YE 5G tar
Slide 6: Customers growing strongly
Customers growing strongly Mobile net adds Fixed line net adds2 '000 '000 3,868 3,745 493 488 US (postpaid) Broadband 9M/20 9M/213 9M/20 9M/21 1,184 1,052 213 193 Ex US (contract)1 TV 9M/20 9M/21 9M/20 9M/21 1 GER + EU + NL. GER: Own branded retail customers excl. multibrand, consumer IoT and “Schne
Slide 7: Guidance 2021 group outlook raised again
Guidance 2021 group outlook raised again Adj. EBITDA AL DT Ex US € bn TM US 35.0 ~37 >37.2 ~38 New guidance for adj. EBITDA AL of around €38 bn and FCF AL of 14.0 14.3 14.4 14.6 around €8.5 bn reflecting improved outlook for TM US 21.0 22.7 >22.8 >23.2 and DT ex US. TM US EBITDA included at FY/20 Or
Slide 8: Review Q3 2021
Review Q3 2021
Slide 9: Financials as reported strong growth
Financials as reported strong growth € mn Q3 9M 2020 2021 Change 2020 2021 Change Revenue 26,393 26,877 +1.8% 73,377 79,860 +8.8% Adj. EBITDA AL 9,692 9,661 -0.3% 26,065 28,323 +8.7% Adj. EBITDA AL (excl. US) 3,698 3,890 +5.2% 10,608 11,108 +4.7% Adj. Net profit 1,506 1,313 -13.0% 4,072 4,627 +13
Slide 10: Germany: 20th consecutive quarter of EBITDA growth
Germany 20th consecutive quarter of EBITDA growth Revenues (as reported) Adj. EBITDA AL (as reported) € mn € mn +2.5% +3.9% 5,842 5,990 2,364 2,456 Q3/20 Q3/21 Q3/20 Q3/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy 3.4% 2.9% 1.8% 3.5% 3.8% 3.8% 0.6% 1.3% 1.1% -1.1% Q3/20
Slide 11: Germany service revenue growth driven by mobile and fixed
Germany service revenue growth driven by mobile and fixed Total service revenue growth (organic)1,2 Mobile service revenue growth1 % yoy 1.7% 1.8% 1.6% % yoy 2.0% 2.0% 0.9% -0.1% -0.5% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 -0.8% -1.7% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Fixed service revenue growth (organic)1,2 %
Slide 12: Germany positive mobile KPIs
Germany positive mobile KPIs Magenta EINS share (mobile)1 Data usage2 % GB per month 6.8 60% 63% 5.2 +31% y/y Q3/20 Q3/21 Q3/20 Q3/21 Churn2 Branded contract net adds3 % '000 0.8% 0.8% 175 182 169 147 135 Q3/20 Q3/21 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 1 B2C T-branded contract customers 2 B2C T-branded co
Slide 13: Germany strong commercials in fixed
Germany strong commercials in fixed Broadband net adds TV net adds '000 '000 121 77 97 93 93 90 64 32 37 33 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Line losses Fiber net adds Retail '000 '000 Wholesale • 1.1 mn super vectoring customers 415 367 368 -7 291 276 -12 -12 269 235 243
Slide 14: Germany growth in retail fixed
Germany growth in retail fixed Retail fixed revenues (reported)1,2 Broadband revenue growth1 € mn +3.0% % yoy 2,942 3,030 6.2% 6.4% 6.5% 6.4% 5.5% Broadband revenues +5.5% 1,541 1,625 Single play and other revenues 1,401 1,405 +0.3% Q3/20 Q3/21 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Retail fixed revenue grow
Slide 15: T-Mobile continued strong performance
T-Mobile continued strong performance Revenues (IFRS) Adj. EBITDA AL (IFRS) US$ bn US$ bn +2.3% -2.9% 19.4 19.8 7.0 6.8 Other revenues Service revenues Q3/20 Q3/21 Q3/20 Q3/21 Service revenue (US GAAP)1 Core EBITDA growth (US GAAP)1 US$ bn/% yoy US$ bn/% yoy 14.5 14.7 6.0 6.0 14.1 14.2 14.2 +9.5% +4
Slide 16: T-Mobile industry leading network and strong customer KPIs
T-Mobile industry leading network and strong customer KPIs Ultra Capacity 5G coverage1 5G EXTENDED RANGE 5G ULTRA CAPACITY Total postpaid net additions mn POPs mn 300 2.0 250 1.6 190 200 1.3 1.3 1.2 106 2020 Q3/21 2021e 2022e 2023e Q3/20 Q4/20 Q1/21 Q2/21 Q3/212 Annual synergies Postpaid phone churn
Slide 17: Europe: 15th consecutive quarter of organic EBITDA growth
Europe 15th consecutive quarter of organic EBITDA growth Revenues Adj. EBITDA AL € mn € mn +0.9% +3.9% 2,880 2,905 1,064 1,105 Q3/20 Q3/21 Q3/20 Q3/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 4.0% 5.3% 5.4% 4.1% 0.8% 1.2% 2.1% 1.9% 0.2% -0.5% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21
Slide 18: Europe consistent commercial performance
Europe consistent commercial performance Mobile contract net adds Broadband net adds '000 '000 258 212 216 87 177 151 59 58 57 55 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 FMC net adds TV net adds1 '000 '000 258 248 191 170 69 128 46 26 34 6 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q3/20 Q4/2
Slide 19: T-Systems recovery under way
T-Systems recovery under way Order entry (LTM) Revenues Adj. EBITDA AL € bn € mn € mn +23.6% +1.7% +3.9% 4.9 955 971 77 80 4.0 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Revenue growth (organic)1 Adj. EBITDA AL growth (organic)1 % yoy % yoy Strong growth in Public Cloud and Digital 16.5% Solutions 5.6% 0
Slide 20: Group Development ongoing strong performance
Group Development ongoing strong performance Revenues Adj. EBITDA AL € mn € mn +9.5% +19.7% 719 787 340 284 NL 179 NL 484 515 141 GD Towers 248 270 Others 149 164 GD Towers -13 2 -6 -3 Others Q3/20 Q3/21 Q3/20 Q3/21 Revenue growth (organic) Adj. EBITDA AL growth (organic) % yoy % yoy 5.0% 15.5% 4.2%
Slide 21: GD/TMNL strong performance continues
GD/TMNL strong performance continues Contract net adds Mobile service revenue growth (organic) '000 % yoy 4.9% 70 62 3.5% 52 0.4% 0.6% 22 12 -0.9% Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Broadband net adds Adj. EBITDA AL growth (organic) '000 % yoy 23.8% 19 21 15 14 12 6.8% 6.2%
Slide 22: GD Towers ongoing expansion
GD Towers ongoing expansion Total sites1 Recurring rental revenues '000 € mn 40.1 +10.9% 35.0 7.0 (organic +5.8%) 3.1 0.0 0.0 Austria 221 245 31.9 33.0 NL DFMG Q3/20 Q3/21 Q3/20 Q3/21 Opex AL per site Adj. EBITDA +10.6% € ‘000 € mn (organic +4.8%) 3.0 2.9 199 220 EBITDA AL: +10.1% 149 164 (organic +
Slide 23: Financials: strong FCF, net income impacted by TM US options
Financials strong FCF, net income impacted by TM US options Free Cash Flow AL1 Adj. net profit € mn € mn -13.0% +79.9% 1,509 37 108 1,313 2,940 -500 4 -692 128 -25 156 1,895 1,634 Q3/20 Net CF gen. Leasing Capex (excl. Others Q3/21 Q3/20 Adj. EBITDA D&A Financial Taxes Minorities Q3/21 from ops. pay
Slide 24: Balance sheet sequential increase in leverage ratios
Balance sheet sequential increase in leverage ratios € bn 30/09/2020 31/12/2020 31/03/2021 30/06/2021 30/09/2021 Balance sheet total 265.3 264.9 273.9 270.5 273.4 Shareholders’ equity 72.0 72.6 77.5 77.0 78.9 Net debt excl. leases (AL) 92.7 89.6 98.3 96.8 99.3 Net debt excl. leases (AL)/adj. EBITDA
Slide 25: Appendix
Appendix
Slide 26: FCF AL excl. US
FCF AL excl. US € bn FY 2020 9M 2020 9M 2021 Adj. EBITDA AL 14.0 10.6 11.1 Cash Capex -7.7 -5.4 -5.1 Proceeds from sale of fixed assets +0.2 +0.2 +0.1 Special Factors Cash -1.4 -1.1 -0.9 Interest ex leasing -0.6 -0.5 -0.5 Cash Taxes -0.6 -0.3 -0.5 Other (working capital etc.) -0.4 -0.6 +0.1 FCF AL 3
Slide 27: Organic growth rates
Organic growth rates In % Q3/21 over Q3/20 9M/21 over 9M/20 Group revenue +2.1 +5.3 Group service revenue +2.3 +3.2 Service revenue excl. US +2.5 +1.8 Group Adj. EBITDA AL +0.2 +3.0 Adj. EBITDA AL excl. US +5.3 +4.7 Group adj. core EBITDA AL1 +6.7 +8.7 1 adj. EBITDA AL excl. TM US handset leases 27
Slide 28: Outlook 2021/22 as per annual report 2020 (1/2)
Outlook 2021/22 as per annual report 2020 (1/2)1 € bn 2020 pro forma 2021e 2022e Revenue Group 106.7 Slight increase Stable Germany 23.6 Slight increase Slight increase US (in US$) 76.4 Slight increase Stable Europe 11.3 Stable Stable Systems Solutions 4.2 Slight decrease Stable Group Development 3.
Slide 29: Outlook 2021/22 as per annual report 2020 (2/2)
Outlook 2021/22 as per annual report 2020 (2/2)1 € bn 2020 pro forma 2021e 2022e Cash Capex Group 17.8 18.4 Stable Germany 4.2 Stable Increase US (in US$) 11.7 Increase Stable Europe 1.8 Slight decrease Stable Systems Solutions 0.2 Stable Stable Group Development 0.5 Strong increase Increase FCF AL
Slide 30: Conference call with Q&A session
Conference call with Q&A session The conference call will be held on November 12 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET. DT Participants: Tim Hoettges (CEO), Christian Illek (CFO), Hannes Wittig (Head of IR) Webcast Dial-in • The link to the webcast will be provided 20 minutes before the DE 0800 58891
Slide 31: Further questions please contact the IR department
Further questions please contact the IR department Investor Relations Contact details Phone +49 228 181 – 8 88 80 E-Mail investor.relations@telekom.de Contact details for all IR representatives: www.telekom.com/ircontacts IR Webpage IR Twitter Account IR YouTube Channel www.telekom.com/investors www