Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q4 2007 Earnings Presentation
99 slides from Deutsche Telekom's earnings presentation, February 2008
Slide 1: Backup Q4 2007
Backup Q4 2007. Deutsche Telekom. Check out our IR website www.telekom.com/investor-relations for: This backup in .pdf and excel-format The IR calender Detailed information for debt investors Shareholder structure Corporate governance For further information on the business units please refer to: ww
Slide 2: Notes
Notes. ===!"§ Page 2
Slide 3: Content
Content. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details on special factor
Slide 4: At a Glance I
At a Glance I. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue Broadband/Fixed Network 6,117 5,832 5,655 5,626 5,577 -8.8% 24,515 22,690 -7.4% Mobile Communications 8,440 8,400 8,650 8,875 8,811 4.4% 32,040 34,736 8.4% Mobile Europe 4,942 4,944 5,119 5,325 5,3
Slide 5: At a Glance II
At a Glance II. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. EBITDA margin excluding special factors Broadband/Fixed Network 32.6% 32.1% 33.7% 35.0% 36.3% 3.7%p 35.7% 34.2% -1.5%p Mobile Communications 30.5% 30.2% 31.8% 33.1% 28.4% -2.1%p 30.9% 30.9% 0.0%p Mobile Europe
Slide 6: Excellent market position
Excellent market position. Delta q.o.q. Delta y.o.y. millions1 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 abs. % abs. % Broadband lines (total)2,3 11.3 12.2 12.7 13.3 13.9 0.6 4.5% 2.6 23.0% of which domestic 10.3 11.1 11.5 12.0 12.5 0.5 4.2% 2.2 21.4% of which: resale4 3.2 3.4 3.5 3.5 3.5 0.0 0.0
Slide 7: Change in accounting standard (IFRS 8)
Change in accounting standard (IFRS 8). In November 2006, the International Accounting Standards Board (IASB) issued IFRS 8 “Operating Segments.” IFRS 8 replaces IAS 14 “Segment Reporting” and must be applied to reporting periods beginning on or after January 1, 2009. Deutsche Telekom has opted for
Slide 8: DT Group
DT Group. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details on special facto
Slide 9: DT consolidated income statement. Adjusted for special factors
DT consolidated income statement. Adjusted for special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Net revenue 15,895 15,453 15,575 15,693 15,795 -0.6% 61,347 62,516 1.9% Cost of sales -9,337 -8,612 -8,406 -8,320 -8,747 6.3% -33,355 -34,085 -2.2% Gross profit 6
Slide 10: DT Group. EBITDA reconciliation
DT Group. EBITDA reconciliation. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Net revenue 15,895 15,453 15,575 15,693 15,795 61,347 62,516 Net profit (loss) -898 459 608 259 -757 3,165 569 + Profit (loss) attributable to minority interests 73 116 134 175 84 409 509 = Profit (loss) after i
Slide 11: DT consolidated income statement. Unadjusted
DT consolidated income statement. Unadjusted. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Net revenue 15,895 15,453 15,575 15,693 15,795 -0.6% 61,347 62,516 1.9% Cost of sales -10,506 -8,620 -8,590 -8,607 -9,520 9.4% -34,755 -35,337 -1.7% Gross profit 5,389 6,833 6,985
Slide 12: Special factors in the consolidated income statement
DT Group. Special factors in the consolidated income statement. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Net revenue 0 0 0 0 0 0 0 Cost of sales -1,169 -8 -184 -287 -773 -1,400 -1,252 Gross profit -1,169 -8 -184 -287 -773 -1,400 -1,252 Selling expenses -702 6 -65 -35 -404 -790 -498 Ge
Slide 13: Details on special factors I
DT Group. Details on special factors I. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Effect on operating expenses -2,658 -139 -298 -559 -2,224 -3,176 -3,220 of which: impairment loss on the goodwill of Slovak Telekom 0 0 of which: expensing of SAC at T-Online from previous periods 0 0 of
Slide 14: Details on special factors II
DT Group. Details on special factors II. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 Q4/07 Effect on profit (loss) from financial activities 0 -17 1 12 -5 196 -9 of which: exp. from interest added back to provisions for staff-related measures -17 -17 -19 -5 -58 of which: sale of Sireo / Celcom
Slide 15: Change in the composition of the Group in the current year
DT Group. Change in the composition of the Group in the current year. Reported MINUS PLUS Total % Pro figures effect Pro Forma Acquisition effects1 Deconsolidation effects5 forma FY/07 FY FY Mobile Bus. Mobile Bus. FY reported millions of € 2006 2007 Total Europe2 BB/FN3 Cust.4 Total Europe BB/FN6 C
Slide 16: Change in the composition of the Group in the fourth quarter
DT Group. Change in the composition of the Group in the fourth quarter. reported MINUS PLUS Total % Pro numbers effect Pro Forma Acquisition effects1 Deconsolidation effects4 forma Q4/07 Q4 Q4 Mobile Bus. Mobile Bus. Q4 reported millions of € 2006 2007 Total Europe2 BB/FN3 Cust. Total Europa BB/FN5
Slide 17: Consolidated balance sheet. Assets
Consolidated balance sheet. Assets1. billions of € 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 % y.o.y. Current assets 16.0 17.3 15.2 16.1 15.9 0.0% Cash and cash equivalents 2.8 4.0 2.1 3.5 2.2 -20.4% Trade and other receivables 7.8 7.6 7.6 7.7 7.7 -0.7% Current recoverable income taxes 0.6 0.3 0.
Slide 18: Consolidated balance sheet. Equity and liabilities
Consolidated balance sheet. Shareholders' equity and liabilities1. billions of € 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 % y.o.y. Liabilities 80.5 79.4 77.3 74.6 75.4 -6.3% Current liabilities 22.1 21.1 22.0 21.1 23.2 5.1% Financial liabilities 7.7 7.9 9.5 8.2 9.1 18.1% Trade and other payables
Slide 19: Maturity profile
Maturity profile. Bonds and Medium Term Notes (MTN) maturities as of December 31, 2007 (€ billion) 14 For detailed information on Bonds, Medium Term Notes and the Mandatory 12 Convertible Bond such as: •Principal amount •Currency 10 •Maturity date •Coupon 8 6.2 •ISIN Code •Documentation 6 check the
Slide 20: Liquidity reserves as of December 31, 2007
Liquidity reserves as of December 31, 2007. € billion 80 Liquidity reserves (€ billion) 19.4 70 Unused bilateral credit lines 60 16.2 19.4 Assets 3.2 50 40 56.6 30 20 37.2 Total line availability 10 Liquidity reserves 0 DT Group net debt ===!"§ Page 20
Slide 21: Debt to net debt reconciliation
Debt to net debt reconciliation. millions of € 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 % q.o.q. % y.o.y. Bonds 36,288 36,176 35,013 33,079 32,294 -2.4% -11.0% Other financial liabilities 7,399 8,137 8,507 7,891 8,568 8.6% 15.8% Gross debt 43,687 44,313 43,520 40,970 40,862 -0.3% -6.5% Cash and
Slide 22: Cash capex
Cash capex1. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. 2 Broadband/Fixed Network 953 722 534 629 920 -3.5% 3,250 2,805 -13.7% Mobile Communications 4,475 915 822 767 1,392 -68.9% 7,247 3,896 -46.2% Mobile Europe 710 448 387 405 698 -1.7% 1,950 1,938 -0.6% Mobile USA 3
Slide 23: Free cash flow
Free cash flow. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Net profit (loss) -898 459 608 259 -757 15.7% 3,165 569 -82.0% Profit (loss) attributable to minority interests 73 116 134 175 84 15.1% 409 509 24.4% Profit (loss) after income taxes -825 575 742 434 -673 18.4%
Slide 24: Personnel
Personnel1. End of period 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 Delta q.o.q. Delta y.o.y. abs. % abs. % BBFN3 101,594 100,434 98,459 95,698 93,486 -2,212 -2.3% -8,108 -8.0% Domestic 82,112 81,386 80,293 78,598 76,990 -1,608 -2.0% -5,122 -6.2% International 19,482 19,048 18,166 17,100 16,496 -
Slide 25: Exchange rates
Exchange rates. Average. € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 1 U.S dollar (USD) 0.77589 0.76316 0.74185 0.72801 0.69071 0.79625 0.72974 1 British pound (GBP) 1.48544 1.49169 1.47333 1.47034 1.41335 1.46671 1.46142 100 Czechs korunas (CZK) 3.56567 3.56627 3.53691 3.57903 3.72764 3.52842 3.601
Slide 26: Sustainability Achievements. Supply chain management
Sustainability Achievements. DT`s approach towards supply chain management. DT became in 2007 a leading Company [in supply chain] (recognized by SAM Sustainable Asset Management AG, Zurich) 2007 Achievements: Transformation and implementation of strategy into DT`s Global Procurement Policies and Pra
Slide 27: Sustainability Achievements. Selected response from the financial community
Sustainability Achievements. Selected response from the financial community. Organization/Rater Rating Deutsche Telekom Criteria WWF Deutsche Telekom is worldwide the best Strategic positioning on climate change, Capital 03 – 2007 positioned corporate as far as climate global warming (German magazin
Slide 28: Decoupling energy consumption from CO2 emissions
Sustainability Achievements. Decoupling energy consumption from CO2 emissions. Deutsche Telekom Germany (1995 = 100 Energy CO2eq 120 Inclusion of energy amounts carried forward from years for technical reasons 100 Purchase of renewable energy certificates 80 Increased purchase 60 combined heat & Inc
Slide 29: Notes
Notes. ===!"§ Page 29
Slide 30: Mobile Communications
Mobile Communications. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details on
Slide 31: T-Mobile. Adjusted for special influences
T-Mobile Adjusted for specials influences € million Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 8,440 8,400 8,650 8,875 8,811 4.4% 32,040 34,736 8.4% Net revenue 8,247 8,246 8,472 8,694 8,638 4.7% 31,308 34,050 8.8% ARPU revenue 7,325 7,485 7,722 7,949 7,732 5.6% 27,935
Slide 32: T-Mobile EBITDA Reconciliation
T-Mobile EBITDA Reconciliation € million Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 8,440 8,400 8,650 8,875 8,811 4.4% 32,040 34,736 8.4% Profit (loss) from operations = EBIT 976 1,066 1,297 1,356 734 -24.8% 4,504 4,453 -1.1% - Depreciation and amortization -1,566 -1,4
Slide 33: T-Mobile Unadjusted
T-Mobile Unadjusted € million Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 8,440 8,400 8,650 8,875 8,811 4.4% 32,040 34,736 8.4% Net revenue 8,247 8,246 8,472 8,694 8,638 4.7% 31,308 34,050 8.8% ARPU revenue 7,325 7,485 7,722 7,949 7,732 5.6% 27,935 30,888 10.6% EBITDA 2
Slide 34: T-Mobile Special influences
T-Mobile Special influences € million Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Effects on EBITDA -35 -18 -9 -3 -117 -40 -147 - of which restructuring1 -35 -2 -9 -3 -133 -40 -147 - of which other -16 16 0 Effects on Operating Results = EBIT -68 -18 -9 -184 -263 -76 -474 - of which effects on EBITDA
Slide 35: T-Mobile Customer Summary - pro forma
T-Mobile Customer Summary - pro forma - Thousands 31/12/06 31/3/07 30/6/07 30/9/07 31/12/07 % y.o.y. 1 Germany 31,398 33,049 34,329 34,471 35,952 14.5% United Kingdom2 16,905 16,734 16,786 17,005 17,311 2.4% Poland3 12,228 12,373 12,525 12,722 12,998 6.3% Austria3 3,180 3,139 3,148 3,227 3,273 2.9%
Slide 36: T-Mobile Customer Summary
T-Mobile Customer Summary Thousands 31/12/06 31/3/07 30/6/07 30/9/07 31/12/07 % y.o.y. Germany 1 31,398 33,049 34,329 34,471 35,952 14.5% United Kingdom2 16,905 16,734 16,786 17,005 17,311 2.4% Poland3 12,228 12,373 12,525 12,722 12,998 6.3% Austria3 3,180 3,139 3,148 3,227 3,273 2.9% Czech Republic
Slide 37: T-Mobile Germany (TMD)
T-Mobile T-Mobile Germany (TMD) '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. 1 Customers (end of period) 31,398 33,049 34,329 34,471 35,952 14.5% 31,398 35,952 14.5% - Contract 15,092 15,343 15,520 15,669 16,054 6.4% 15,092 16,054 6.4% - Prepay1 16,305 17,705 18,808 18,802 19,897
Slide 38: Relax Plans Germany. Overview
Relax Plans Germany. Overview in € Relax 50 Relax 100 Relax 200 Relax 400 Relax 1000 1 . Monthly charge Relax XL 24.00 39.00 49.00 69.00 79.00 Relax (with handset) 19.00 28.00 38.00 58.00 68.00 Relax eco (no handset) 10.00 19.00 29.00 49.00 59.00 Relax Student 7.50 17.50 - - - 2. Voice National voic
Slide 39: Calling plans Max and MyFaves. Germany
Calling plans Max and MyFaves. Germany. in € Max Max S Max Friends1 Max plans Max 35.00 15.00 25.00 Max (with handset) 44.00 24.00 34.00 Charge per minute: -mobile to national fixed net FREE FREE FREE -on-net FREE 0.29 FREE -other mobile networks 0.29 0.29 0.29 SMS (on-net) FREE 0.19 FREE SMS (other
Slide 40: iPhone - exclusively from T-Mobile and Apple
iPhone - exclusively from T-Mobile and Apple. Calling plans in Germany. Launched in Germany on Nov. 9th, 2007 in € Complete M Complete L Complete XL Monthly charge 49.00 69.00 89.00 EDGE data flat rate inclusive W-LAN data flat rate inclusive Visual voicemail (on-net) inclusive Weekend flat rate inc
Slide 41: Data Options/Plans Germany
Data Options/Plans Germany. in € Data 5 Data 30 Sidekick Data MyFaves, Relax (excl. Relax MyFaves, Relax (excl. Relax XL), Basix, Max, XL), Basix, Max, CombiCard CombiCard Relax, CombiCard Data, Mobile Plans: Relax, CombiCard Data web'n'walk Connect, web'n'walk Plus Monthly charge data option 5.00 1
Slide 42: Data Options/Plans Germany
Data Options/Plans Germany. Web'n'walk Surfoption: web'n'walk Basic web'n'walk Medium web'n'walk Large (Speed up to 7.2 Mbit/s) Monthly charge data option 20.00 35.00 50.00 Additional data volume (per MB) 0.80 0.80 0.50 Data volume 200 MB 400 MB 5 GB WLAN usage (per month) 3 hours 20 hours 200 hours
Slide 43: Congstar Calling Plans. Overview
Congstar Calling Plans. Overview. in € Mobile Prepaid Monthly charge 0.00 minutes 0.10 SMS 0.10 Activation fee 9.99 congstar Fixed line T-Mobile Vodafone O2 E-Plus Flatrates Flat Flat Flat Flat Flat1 Flat2 Voice Flat 4.99 9.99 19.99 19.99 14.99 14.99 SMS Flat 4.99 - 9.99 9.99 9.99 9.99 minutes off-n
Slide 44: T-Mobile USA
T-Mobile T-Mobile USA '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 25,041 26,020 26,877 27,734 28,685 14.6% 25,041 28,685 14.6% - Contract 21,211 21,937 22,624 23,181 23,914 12.7% 21,211 23,914 12.7% - Prepay 3,829 4,083 4,253 4,553 4,771 24.6% 3,829 4,7
Slide 45: T-Mobile USA Financials $ IFRS
T-Mobile T-Mobile USA Financials $ IFRS $ Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenues (million) 4,523 4,545 4,778 4,893 5,066 12.0% 17,125 19,282 12.6% ARPU Revenue (million) 3,709 3,890 4,088 4,225 4,257 14.8% 14,117 16,460 16.6% Adj. EBITDA (million) 1,179 1,226 1,38
Slide 46: Individual myFaves Plans
Individual myFaves Plans. sm Weekend/Night 1 Monthly charge Whenever Minutes Minutes myFaves Minutes2 myFaves 300 $ 39.99 300 Unlimited Unlimited myFaves 600 $ 49.99 600 Unlimited Unlimited myFaves 1000 $ 59.99 1000 Unlimited Unlimited myFaves 1500 $ 69.99 1500 Unlimited Unlimited myFaves 2500 $ 109
Slide 47: T-Mobile UK
T-Mobile T-Mobile UK '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. 1 Customers (end of period) 16,905 16,734 16,786 17,005 17,311 2.4% 16,905 17,311 2.4% - Contract 3,715 3,821 3,893 3,937 3,880 4.4% 3,715 3,880 4.4% - Prepay1 13,190 12,913 12,892 13,068 13,431 1.8% 13,190 13,431
Slide 48: Flext. New Standards of mobile Value
Flext. £ 5 off New Standards of mobile Value. line rental* Flext + web'n'walk Monthly Monthly charge monthly charge Allowance1 Pure Minutes Pure Texts Flext 20 £ 20 now £ 15 £ 27.5 now £ 22.5 £ 34 170 minutes 340 texts Flext 25 £ 25 now £ 20 £ 32.5 now £ 27.5 £ 60 300 minutes 600 texts Flext 30 £ 30
Slide 49: MyFaves Plans. UK
MyFaves Plans. UK. Monthly Allowance Monthly charge MyFaves Pure Minutes Pure Texts MyFaves 25 £ 25 unlimited 25 minutes 50 texts MyFaves 35 £ 35 unlimited 100 minutes 200 texts MyFaves 45 £ 45 unlimited 200 minutes 400 texts Calling costs (once your inclusive minutes have been used up) Any UK netwo
Slide 50: PTC (Poland) - pro forma
T-Mobile PTC (Poland) - pro forma - '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 12,228 12,373 12,525 12,722 12,998 6.3% 12,228 12,998 6.3% - Contract 4,531 4,746 4,914 5,122 5,409 19.4% 4,531 5,409 19.4% - Prepay 7,697 7,627 7,611 7,600 7,590 -1.4% 7,69
Slide 51: T-Mobile Austria
T-Mobile T-Mobile Austria '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 3,180 3,139 3,148 3,227 3,273 2.9% 3,180 3,273 2.9% - Contract 1,962 1,943 1,965 2,061 2,133 8.7% 1,962 2,133 8.7% - Prepay 1,218 1,196 1,183 1,166 1,141 -6.3% 1,218 1,141 -6.3% Net a
Slide 52: T-Mobile Czech Republic
T-Mobile T-Mobile Czech Republic '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 5,049 5,109 5,140 5,207 5,271 4.4% 5,049 5,271 4.4% - Contract 1,809 1,915 2,014 2,132 2,228 23.2% 1,809 2,228 23.2% - Prepay 3,240 3,194 3,125 3,075 3,044 -6.0% 3,240 3,044 -6
Slide 53: T-Mobile Netherlands
T-Mobile T-Mobile Netherlands2 '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 2,552 2,592 2,638 2,639 4,889 91.6% 2,552 4,889 91.6% - Contract 1,337 1,338 1,343 1,351 2,090 56.3% 1,337 2,090 56.3% - Prepay 1,215 1,254 1,295 1,288 2,799 n.a. 1,215 2,799 n.a
Slide 54: T-Mobile Hungary
T-Mobile T-Mobile Hungary '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 4,431 4,478 4,517 4,628 4,853 9.5% 4,431 4,853 9.5% - Contract 1,545 1,599 1,654 1,710 1,794 16.1% 1,545 1,794 16.1% - Prepay 2,886 2,879 2,863 2,918 3,060 6.0% 2,886 3,060 6.0% Net a
Slide 55: T-Mobile HR (Croatia)
T-Mobile T-Mobile HR (Croatia) '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 2,158 2,192 2,222 2,278 2,385 10.5% 2,158 2,385 10.5% - Contract 555 589 614 641 685 23.4% 555 685 23.4% - Prepay 1,603 1,603 1,608 1,637 1,700 6.1% 1,603 1,700 6.1% Net adds 82
Slide 56: T-Mobile Slovensko (Slovakia)
T-Mobile T-Mobile Slovensko (Slovakia) '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 2,201 2,223 2,226 2,307 2,367 7.5% 2,201 2,367 7.5% - Contract 965 998 1,027 1,088 1,171 21.3% 965 1,171 21.3% - Prepay 1,237 1,225 1,199 1,218 1,197 -3.2% 1,237 1,197 -3
Slide 57: T-Mobile Macedonia
T-Mobile T-Mobile Macedonia '000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Customers (end of period) 945 955 1,002 1,066 1,213 28.4% 945 1,213 28.4% - Contract 177 195 233 249 281 58.8% 177 281 58.8% - Prepay 767 759 769 817 932 21.5% 767 932 21.5% Net adds 19 10 47 64 147 n.a. 67
Slide 58: Notes
Notes. ===!"§ Page 58
Slide 59: Notes
Notes. ===!"§ Page 59
Slide 60: Broadband/Fixed Network
Broadband/Fixed Network. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details o
Slide 61: Broadband/Fixed Network. Adjusted for special factors
Broadband/ Fixed Network. Adjusted for special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y Total revenue 6,117 5,832 5,655 5,626 5,577 -8.8% 24,515 22,690 -7.4% Domestic 5,433 5,146 4,948 5,002 4,982 -8.3% 21,835 20,078 -8.0% International 684 698 722 632 602 -1
Slide 62: Broadband/Fixed Network. EBITDA reconciliation
Broadband/ Fixed Network. EBITDA reconciliation. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Total revenue 6,117 5,832 5,655 5,626 5,577 24,515 22,690 Profit (loss) from operations = EBIT -325 976 929 947 398 3,356 3,250 Depreciation, amortization and - -988 -908 -926 -914 -927 -3,839 -3
Slide 63: Broadband/Fixed Network. Unadjusted
Broadband/ Fixed Network. Unadjusted. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y Total revenue 6,117 5,832 5,655 5,626 5,577 -8.8% 24,515 22,690 -7.4% Domestic 5,433 5,146 4,948 5,002 4,982 -8.3% 21,835 20,078 -8.0% International 684 698 722 632 602 -12.0% 2,680 2,654 -
Slide 64: Broadband/Fixed Network. Special factors
Broadband/ Fixed Network. Special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Effects on EBITDA -1,334 14 -50 -107 -702 -1,553 -845 of which: expensing of SAC at T-Online from -40 previous quarters of which: staff-related restruct. MT, HT, ST -18 -7 -7 -1 -51 -21 -66 of which: r
Slide 65: Key operational performance - Broadband
Broadband/ Fixed Network.1 Key operational performance - Broadband (excl. T-Online France/Spain). Thousands 30/09/06 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 y.o.y.% q.o.q.% Broadband Lines in operation (total)1/2/3/4 10,245 11,272 12,169 12,681 13,264 13,927 23.6% 5.0% of which Retail1 7,205 7,
Slide 66: Key operational performance - Fixed-network lines
Broadband/ Fixed Network. Key operational performance - Fixed-network lines (excl. T-Online France/ Spain). Thousands 30/09/06 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 y.o.y.% q.o.q.% Fixed-network lines (total)1 39,498 38,961 38,301 37,726 37,166 36,554 -6.2% -1.6% Domestic 33,695 33,192 32,605
Slide 67: International. Key financial figures
International. Key financial figures. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 y.o.y.% FY/06 FY/07 y.o.y.% 1/4 International (total) Total revenue 684 698 722 632 602 -12.0% 2,680 2,654 -1.0% Total adj. EBITDA 209 214 249 284 232 11.0% 845 979 15.9% Total adj. EBITDA margin 30.6% 30.7% 34.5% 44.9
Slide 68: International (Eastern Europe only). Key financial figures in local currency
International (Eastern Europe only). Key financial figures in local currency. millions Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 y.o.y.% FY/06 FY/07 y.o.y.% Magyar Telekom (MT)1/2 (HUF) Revenue 75,148 75,053 77,087 78,344 76,886 2.3% 312,890 307,370 -1.8% Adj. EBITDA 33,950 31,507 32,550 33,616 30,652 -9.7% 129
Slide 69: T-Home: Domestic. Revenue split
T-Home: Domestic.1 Revenue split. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 y.o.y.% FY/06 FY/07 y.o.y.% Domestic (total) 5,433 5,146 4,948 5,002 4,982 -8.3% 21,835 20,078 -8.0% of which network communications2 2,716 2,631 2,556 2,561 2,390 -12.0% 11,240 10,138 -9.8% thereof narrowband access 1,923
Slide 70: T-Home: Domestic. Call minutes and call revenues
T-Home: Domestic. Call minutes and call revenues.1 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 y.o.y.% FY/06 FY/07 y.o.y.% Minutes (billions) Total 26.52 26.51 24.61 24.67 26.40 -0.5% 105.04 102.19 -2.7% City/local 14.83 15.17 13.68 13.54 14.69 -0.9% 59.42 57.07 -4.0% Long distance 9.21 8.91 8.43 8.56 9.06 -1.6%
Slide 71: Personnel development
Broadband/ Fixed Network. Personnel development. Year end/quarter end Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 y.o.y.% q.o.q.% FY/06 FY/07 y.o.y.% Number of employees (total)1/2 101,594 100,434 98,459 95,698 93,486 -8.0% -2.3% 101,594 93,486 -8.0% Domestic 82,112 81,386 80,293 78,598 76,990 -6.2% -2.0% 82,112
Slide 72: Complete Packages
Broadband/ Fixed Network. Complete Packages.1,2,3 Calltime Calltime XXL Local XXL Fulltime T-Net T-ISDN including city flat rate within up to 120 up to 240 flat rate Germany minutes within minutes within Germany Germany € 19.95 € 27.95 from € 25.95 from € 35.95 Cent/Minute Off peak 0/1.5 0 0 City Pe
Slide 73: Complete Packages
Broadband/ Fixed Network. Complete Packages.1,2,3 Call&Surf Start6 Call&Surf Basic (2) Call&Surf Basic (2) Call&Surf Basic (3) Call&Surf Comfort Call&Surf Comfort Plus bandwidth DSL T-Net up to 120 T-ISDN bandwidth DSL bandwidth DSL Bandwidth DSL 1 Mbit/s, voice minutes within up to 240 minutes 2 Mb
Slide 74: Complete Packages
Broadband/ Fixed Network. Complete Packages.1,2,3 Entertain Basic Entertain Comfort Entertain Comfort Plus bandwidth DSL bandwidth DSL bandwidth DSL 16 Mbit/s, flat rate 16 Mbit/s plus, flat rate 16 Mbit/s plus, flat rate Internet internet usage and flat internet usage and flat usage and flat rate v
Slide 75: Overview interconnection tariffs
Broadband/ Fixed Network. Overview interconnection tariffs (excl. VAT). Peak Peak Off-Peak Off-Peak Cent/min. (9:00-18:00), old (9:00-18:00), new1 (18:00-9:00), old (18:00-9:00), new1 Termination/Origination fees Local 0.59 0.52 0.40 0.36 Single transit 0.96 0.88 0.64 0.59 Double transit national 1.
Slide 76: T-Home offers. IPTV packages
Broadband/ Fixed Network. T-Home offers T-Home T-Home T-Home T-Home T-Home IPTV packages. Entertain Basic Entertain Entertain Entertain Entertain Comfort Comfort VDSL Comfort Plus Comfort Plus Entertainment Included Access to Video on demand ● ● ● ● ● Basic TV channels ● ● ● ● TV archive of selected
Slide 77: New tariffs system
Broadband/ Fixed Network - New tariffs system. Level I Level II Level III package starter I Level premium packageIII Level Triple - Entertain T- Home Entertain Entertain Play Classic Basic Comfort Comfort Plus from 60,84 € from € 49.95 from € 59.95 from € 74.95 Double - Call&Surf Call&Surf Call&Surf
Slide 78: Notes
Notes. ===!"§ Page 78
Slide 79: Notes
Notes. ===!"§ Page 79
Slide 80: Business Customers
Business Customers. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details on spe
Slide 81: Business Customers. Adjusted for special factors
Business Customers. Adjusted for special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 3,424 2,906 2,962 2,917 3,202 -6.5% 12,869 11,987 -6.9% of which: international 669 576 624 609 697 4.2% 2,339 2,506 7.1% Net revenue 2,483 2,183 2,239 2,184 2,36
Slide 82: Business Customers. EBITDA reconciliation
Business Customers. EBITDA reconciliation. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 3,424 2,906 2,962 2,917 3,202 -6.5% 12,869 11,987 -6.9% Profit (loss) from operations = EBIT (unadj.) -1,029 44 34 26 -427 58.5% -835 -323 61.3% Depreciation, amortizati
Slide 83: Business Customers. Unadjusted
Business Customers. Unadjusted. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 3,424 2,906 2,962 2,917 3,202 -6.5% 12,869 11,987 -6.9% Net revenue 2,483 2,183 2,239 2,184 2,365 -4.8% 9,301 8,971 -3.5% EBITDA -764 261 256 243 -176 77.0% 111 584 426.1% EBITDA m
Slide 84: Business Customers. Special factors
Business Customers. Special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Effect on EBITDA -1,037 - -24 -48 -406 60.8% -1,180 -478 59.5% of which restructuring provisions (EBITDA) -1,037 - -24 -48 -406 60.8% -1,169 -448 61.7% of which restructuring provisions (EB
Slide 85: Enterprise Services. Summary
Business Customers Enterprise Services. Summary millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 2,315 1,941 1,992 1,950 2,143 -7.4% 8,533 8,026 -5.9% Adj. EBITDA 286 222 263 253 193 -32.5% 1,249 931 -25.5% Adj. EBITDA margin 12.4% 11.4% 13.2% 13.0% 9.0% -- 14.
Slide 86: Computing & Desktop Services
Computing & Desktop Services. Financial (millions of €) Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 1,209 1,005 1,036 998 1,128 -6.7% 4,554 4,166 -8.5% Adj. EBITDA 211 173 219 200 149 -29.4% 989 741 -25.1% Adj. EBITDA margin 17.5% 17.2% 21.1% 20.0% 13.2% -- 21.7% 17.8%
Slide 87: Systems Integration. Telecommunications
Systems Integration. Financial (millions of €) Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 511 415 415 408 473 -7.4% 1,783 1,711 -4.0% Adj. EBITDA 37 14 11 23 15 -59.5% 117 63 -46.2% Adj. EBITDA margin 7.2% 3.4% 2.7% 5.6% 3.2% -- 6.6% 3.7% -- Capex1 33 7 10 7 16 -51.5%
Slide 88: Business Services. Summary
Business Customers Business Services. Summary millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 1,109 965 970 967 1,059 -4.5% 4,336 3,961 -8.6% Adj. EBITDA -13 39 17 38 37 384.6% 42 131 211.9% Adj. EBITDA margin -1.2% 4.0% 1.8% 3.9% 3.5% -- 1.0% 3.3% -- Capex1 6
Slide 89: Business Customers. TSI Deals
Business Customers. TSI Deals. Volume Duration (in Strategic Project Description Industry (€ millions) months) signed in importance Centrica (UK): IT-Outsourcing; Operation of IT-infrastructure Computing & Desktop and Support of 23k desktops and 2 data upper triple strengthens intern. Services Deal
Slide 90: Notes
Notes. ===!"§ Page 90
Slide 91: Notes
Notes. ===!"§ Page 91
Slide 92: GHS
GHS. At a glance 4 Austria 51 Excellent market position 6 Czech Republic 52 Netherlands 53 Group Hungary 54 Adjusted income statement 9 Croatia 55 EBITDA reconciliation 10 Slovakia 56 Unadjusted income statement 11 Macedonia 57 Special factors in the income statement 12 Details on special factors 13
Slide 93: Group Headquarters & Shared Services. Adjusted for special factors
Group Headquarters & Shared Services. Adjusted for special factors. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 992 952 988 966 962 -3.0% 3,758 3,868 2.9% Net revenue 116 89 102 103 129 11.2% 372 423 13.7% EBITDA -300 67 -21 -37 -117 61.0% -461 -108 76.6%
Slide 94: Group Headquarters & Shared Services. EBITDA reconciliation
Group Headquarters & Shared Services. EBITDA reconciliation. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/06 FY/07 Total revenue 992 952 988 966 962 3,758 3,868 Profit (loss) from operations = EBIT -1,142 -250 -215 -401 -1,107 -2,138 -1,973 Depreciation, amortization and - impairment losses -245 -
Slide 95: Group Headquarters & Shared Services. Unadjusted
Group Headquarters & Shared Services. Unadjusted. millions of € Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 % y.o.y. FY/06 FY/07 % y.o.y. Total revenue 992 952 988 966 962 -3.0% 3,758 3,868 2.9% Net revenue 116 89 102 103 129 11.2% 372 423 13.7% EBITDA -897 -68 -26 -90 -822 8.4% -1,191 -1,006 15.5% of which: Vive
Slide 96: Group Headquarters & Shared Services. Special factors
Group Headquarters & Shared Services. Special factors. millions of € Q4/06 FY/06 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Effect on EBITDA -597 -730 -135 -5 -53 -705 -898 of which: transfer payments to Vivento 5 23 0 1 1 41 43 Provisions for staff reduction, severance payments and -602 -753 -135 -6 -59 -746 -9
Slide 97: Vivento. Results of efficient processes
Vivento. Results of efficient processes. End of period 1 31/12/06 31/03/07 30/06/07 30/09/07 31/12/07 Transfers to Vivento (cumulative) 36,800 37,700 38,000 38,200 38,600 Left Vivento (cumulative) 23,300 24,200 26,900 27,500 28,300 2 Employees in Vivento 13,500 13,500 11,100 10,700 10,200 Business l
Slide 98: Vivento. Focus on efficiency
Vivento. Focus on efficiency. Vivento as of December 31, 2007 1 Ongoing development of business models and employment opportunities Transfers to Vivento: 38,600 Approx. 5,000 left Vivento in FY 2007 – Business about 77% external lines Remaining Approx. 17,400 employees were routed 5,200 Vivento thro
Slide 99: Glossary and Disclaimer
Glossary and Disclaimer. In addition to financial information presented in accordance with IFRS, this presentation contains non-GAAP financial measures, such as ... which is defined as ... EBIT Abbreviation for EARNINGS BEFORE INTEREST AND TAXES. EBIT is equivalent to the P&L-line "Operating Results