Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Investor Presentation (February 2006)
41 slides from Deutsche Telekom's investor presentation, Feb 15, 2006
Slide 1: Welcome - Analysts and Investors Meeting
Welcome Bienvenidos Analysts and Investors Meeting 15 February 2006 1
Slide 2: René Obermann, Chief Executive Officer
René Obermann Chief Executive Officer 2
Slide 3: A changing mobile world. A changing T-Mobile.
A changing mobile world. A changing T-Mobile. Future sources of growth Growth in subscriptions Personal communications goes mobile Usage growth: data, internet and value-added services as well as voice Developing a different economic model Growth of transactional bundled services and sub
Slide 4: Most highly regarded service company.
Most highly regarded service company. Your virtual personal partner for life Whatever you want, wherever, whenever Access to all the people, goods and services you need Personalised service: the key differentiator 4
Slide 5: Entering the service world.
Entering the service world. Most highly regarded service company Save for Growth / Efficiency Integration into one company Footprint expansion 1995-2001 2002-2004 2005-2006 2006 … 5
Slide 6: Thinking through the customer mind.
Thinking through the customer mind. Founded on : Customer centricity Superior network experience Great brand Operational excellence 6
Slide 7: Our agenda for 2006.
Our agenda for 2006. “Best network promise”. “Value promise”. “Service promise” Lead in “always best connected” integrated networks Simplified tariffs. Better value Remote device management and personalized customer service Network investment programme Widen the retail experience: 250 ne
Slide 8: Broadband mobile.
Broadband mobile. Answering a known customer need Replicating the PC experience but mobile web’n’walk TM and Office in your Pocket TM Unique Open. Simple. Affordable The same on your T-Mobile as it works on your PC Meeting and beating DSL speeds Changing the way we live, work, commun
Slide 9: Ulli Gritzuhn, Chief Marketing Officer
Ulli Gritzuhn Chief Marketing Officer 9
Slide 10: Building a service culture.
Building a service culture. Service is an attitude of mind Complete customer centricity Thinking through the customer mind. One size does not it all Superior network experience Operational excellence Delivering in practice what we promise 10
Slide 11: Simplicity and value.
Simplicity and value. Tariffs have become too complicated Customers just want value for money and simplicity Relax tariffs launched in 2004 Simple, transparent, value for money The most popular tariff in Europe Relax customers doubled to 6 million in 2005 11
Slide 12: Flexibility to meet changing usage.
Flexibility to meet changing usage. Some customers have differing usage patterns month by month Flext – unique to T-Mobile – fixes this situation Redefines the contract market Truly flexible. Unique value Denominated in euros or pounds - not minutes or texts Inclusive value covers calls,
Slide 13: Mobile at home.
Mobile at home. Increasing proportion of calls at home are mobile Mobility premium holds back fixed-line substitution Mobile share of outgoing voice traffic D UK Western Europe 2005 24% 32% 36% 2010 E 36% 48% 61% Source: Strategy Analytics, 2005 T-Mobile@home launched January 2006 Customers
Slide 14: web'n'walk. Office in your Pocket.
web’n’walk™. Office in your Pocket ™. Customers want open internet access. Not walled gardens web’n’walk TM replicates PC experience Unique. High speed. Affordable. Flat rates Data usage of web’n’walk TM customers 450% above other customers Data ARPUs of web’n’walk TM customers 140% above
Slide 15: web'n'walk range.
web’n’walk™ range. Expanding the range. Configuring devices New range in Q2 2006 Samsung Z350 BenQ-Siemens EF91 BenQ-Siemens EF81 Nokia 6233 Sony Ericsson W810i Nokia E61 15
Slide 16: Service differentiation.
Service differentiation. Services start with insight into what customers want Using technology to create services that are difficult to replicate Integrating technology with customer care Building long-term customer relationships 16
Slide 17: A new approach to music and Mobile TV.
A new approach to music and Mobile TV. Giving mobile a role in the music value chain Robbie Williams partnership Streamed live to 100,000 mobile phones Also in high definition to cinemas across Europe Increasing speeds. Increasing storage. Better devices Mobile TV has to respect how peop
Slide 18: Growing our market share.
Growing our market share. We will succeed through customer centricity Identifying and meeting segmented customer needs Improving simplicity, value, transparency Opening up the world of content and information Delivering what our customers want 18
Slide 19: Hamid Akhavan, Chief Technology Officer
Hamid Akhavan Chief Technology Officer 19
Slide 20: Entering a new phase.
Entering a new phase. Bridging the performance gap with fixed line broadband … while broadband penetration is still very low Stepping up in service … which meets our customers’ needs 20
Slide 21: Introducing HSDPA. True broadband experience
Introducing HSDPA. True broadband experience DSL6000 Today’s DSL speed LTE >20Mbps ~ HSDPA 7.2Mbps HSDPA DSL1000 3.6Mbps HSDPA 1.8Mbps UMTS 384kbps 2005 2006 2007 21 ~
Slide 22: Big broadband that fits in your pocket.
Big broadband that fits in your pocket. 22
Slide 23: It will become increasingly affordable.
It will become increasingly affordable. 6x 5x Total cost of production 4x UMTS 384 3x 2x HSDPA 1x 200 400 600 800 1000 Average monthly usage (MByte) 23
Slide 24: Data usage is already picking up.
Data usage is already picking up. Data Volume T-Mobile (Germany & Austria) Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 3G 2.5G 24
Slide 25: web'n'walk usage.
web’n’walk™ usage. Number of Hits 2005 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 Jun Jul Aug Sep Okt Nov Dec 25
Slide 26: Service where our customers need it.
Service where our customers need it. 50,000 45,000 40,000 35,000 30,000 2G 25,000 3G / HSDPA WLAN 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 plan 2006 26
Slide 27: With the reliability they demand.
With the reliability they demand. 300K Number of remote device updates 250K 200K 150K 100K 50K Jan 05 Apr 05 Aug 05 Dec 05 Over 200 terminal types supported, and growing 60% of updates customer initiated 80% of updates relate to MMS & data services 27
Slide 28: Individualised for each customer.
Individualised for each customer. Customised offers made based on customer Value Usage patterns Preferences Consistent across all channels 10,000 offers per hour 28
Slide 29: Thomas G. Winkler, Chief Financial Officer
Thomas G. Winkler Chief Financial Officer 29
Slide 30: Save for Growth works
Save for Growth works Re-investment leads to strong customer growth Customers1 ( mn) Customer growth +12% 86.6 +12% 9.2 – +14% postpaid 77.6 8.4 – +10% prepaid 21.7 +1mn above market 17.3 expectations 55.7 51.9 Year-end increase: Western Europe 40% of all net-adds in Q4 USA CEE 1 Incl. Virgin
Slide 31: 2005: A Year to remember! USA, Germany, UK
2005: A Year to remember! USA : most successful year in its history – +25% customers (4.4 mn) yoy – +21% share of market growth (Q3) – #2 in own/branded customers (Q3) Germany : defended market leadership – 30 mn customers in Q1 expected – More contract-oriented growth than major competitor – S4
Slide 32: 2005: A Year to remember! Contract growth and market positions
2005: A Year to remember! Strong contract growth : CEE (+21%), CZ (+17%), NL (+16%), A (+6%) Continued strong market positions (customers) – #1 Croatia – built out leadership despite third market entrant – #1 Hungary – kept 10ppt distance to #2 – (#1)Czech – caught up with #1 – #2 Austria – tele
Slide 33: New tariffs and services help off-set pressure
New tariffs and services help off-set pressure from competition and regulation New tariffs : New game – Relax Voice tripled to 6 mn customers in WEU – 1 mn customers in Mates Rates and U-Fix in UK (every second customer in H2/05) – More than 100,000 web’n’walk options, 400,000 web’n’walk handsets
Slide 34: Outlook
Outlook US: Will make the difference for T-Mobile / DT WEU: Another challenging year – fixed line substitution opportunity – price pressure due to competition and regulation – Balancing investment in market share / long term profitability vs. short term profitability CEE: Staying on guard in t
Slide 35: Thank you
Thank you T+ Mobile: = er world for you
Slide 36: Backup
Backup T+ Mobile: = er world for you
Slide 37: Combining pre-pay bill control with contract value.
Combining pre-pay bill control with contact value. For some customers, absolute cost control is key Ufix - unique to T-Mobile - fixes this situation Combines pre-pay control with the value of contract Fixed monthly amount selected by the customer Bill can never exceed that amount Unless
Slide 38: Peer group communications.
Peer group communications. Youth customers may not be ready or able to take out contracts Peer group communications are key Mates Rates delivers exceptional on-net value Low cost on-net calls and texts No strings attached Over 700,000 customers since July launch in the UK High ARPU 38
Slide 39: Device portfolio - Q1 2006
portfolio - Q1 2006 SDA II N70 Sidekick MDA Vario MDA compact II MOT V3* MOT V3i* N 6280* MDA Pro 39
Slide 40: Proportion of mobile- and fixed-originated voice calls
Proportion of mobile- and fixed-originated voice calls P ort ugal Finland Aust ria France S pain Ireland Mobile Belgium Fixed UK Denm ark It aly Greece Net herlands S w eden Germ any 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Analyses, Date as of Dec. 2004 40
Slide 41: Adjusted EBITDA guidance
Adjusted EBITDA guidance € 9.6 – 9.8 bn € 10.0 – 10.2 bn EBITDA Decline of Decline of Additional S4G EBITDA from EBITDA 2005 wholesale MTC Germany market savings incremental 2006 deal invest ARPU California 41
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