Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Q2 2012 Earnings Presentation

21 slides from Deutsche Telekom's earnings presentation, Aug 9, 2012

  1. Slide 1: Q2/12 – Results Presentation

    Q2/12 – Results Presentation. For smartphone and tablet users: just scan the QR-code and Deutsche Telekom. download this presentation August 9, 2012

  2. 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

  3. Slide 3: Agenda

    Agenda. Deutsche Telekom Results Presentation. René Obermann CEO Timotheus Höttges CFO 3

  4. Slide 4: Q2 2012 Results

    Q2 2012 Results. Life’s for Sharing 2) nas

  5. Slide 5: Q2 2012: Another solid quarter – guidance unchanged

    Q2 2012: Another solid quarter – guidance unchanged.  Robust 2nd quarter financials, full year guidance re-iterated:  Almost stable group revenue of €14.4 billion (-0.7%), supported by currency Group  Adj. EBITDA of €4.7 billion – slightly above last year’s level  First half year’s FCF essential

  6. Slide 6: Q2/12 Key financials: Revenue and adj. EBITDA almost stable, leap in net profit

    Q2/12 Key financials: Revenue and adj. EBITDA almost stable, leap in net profit. € million Q2/11 Q2/12 change H1/11 H1/12 change Revenue 14,475 14,379 -0.7% 29,072 28,811 -0.9% Adj. EBITDA 4,687 4,697 +0.2% 9,167 9,174 +0.1% Adj. net profit3 951 819 -13.9% 1,652 1,400 -15.3% Net profit 348 614 +76.4

  7. Slide 7: Q2/12 Overview

    Q2/12 Overview. Revenue (€ million) Adj. EBITDA (€ million) -0.7% +0.2% 14,475 14,379 4,687 4,697 338 -434 85 -75 Q2/11 F/X Organic Q2/12 Q2/11 F/X Organic Q2/12 Revenue Q2/11 vs. Q2/12 (€ million) Adj. EBITDA Q2/11 vs. Q2/12 (€ million) 5,789 Germany 2,407 Germany 2,355 5,610 USA 892 USA 3,510 1,05

  8. Slide 8: Germany: strong margin, cost cutting accelerated

    Germany: strong margin, cost cutting accelerated vs. Q2/11 and slightly improved revenue trends in mobile. Germany revenues (€ million) Adj. EBITDA (€ million) and margin (in %) Mobile Core fixed Wholesale services Others -2.2% 2,407 2,450 2,302 2,355 -3.1% 2,267 5,789 5,810 5,808 41.6 42.2 42.0 5,6

  9. Slide 9: Germany – Mobile: initiated measures with first results

    Germany – Mobile: initiated measures with first results. Mobile service revenue (€ million) Mobile data revenue (€ million) and as % of serv. revenue -1.0% +18.6% 440 462 484 408 411 28% 29% 1,758 1,660 1,690 24% 23% 25% 1,707 1,728 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Mobile

  10. Slide 10: Germany – fixed: growth in broadband subs, Entertain drives ARPA uplift

    Germany – fixed: growth in broadband subs, Entertain continues to drive ARPA uplift, fiber approaching 6% of broadband base. Broadband access lines (million) and market share1 Broadband rollout (as % of access lines) 45.7% 45.5% 45.3% 45.1% 45.0% Q2/11 Q2/12 26.6 26.8 27.1 27.4 27.6 83% 3.2 3.4 3.5

  11. Slide 11: US: +5.7% adj. EBITDA, +227k branded prepaid

    US: +5.7% adj. EBITDA,+227k branded prepaid & better churn – branded contract losses impacted by weak gross adds. Service revenues (US$ million) Net adds (‘000) 126 187 -6.1% Total net adds 4,543 4,525 4,413 4,309 -50 4,266 -205 -526 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Branded Contract -536 -389 -706 -510

  12. Slide 12: US: Good progress on strategy execution

    US: Good progress on strategy execution. Mission: Making Amazing 4G Services Affordable Challenger Amazing 4G Value Multi-Segment Trusted Brand Business Services Leader Player Model Key  Refarming  Brand relaunch  Distribution push  B2B Invest  Reinvent v2 Programs  LTE in 2013  MVNE platform

  13. Slide 13: Europe: solid customer KPIs, financials impacted by market invest

    Europe: solid customer KPIs. Financials impacted by higher bias on market invest and worsening macro trends. Organic revenue development Organic adj. EBITDA development -3.8% -6.7% 3,807 3,584 3,663 1,316 1,200 1,228 223 79 116 28 Q2/11 change Q2/12 F/X Q2/12 F/X Q2/11 change Q2/12 F/X Q2/12 F/X rep

  14. Slide 14: Europe – integrated markets

    Europe – integrated markets. Greece: Revenue  Ongoing challenging economic and regulatory situation mn EUR -7% mn HRK -7% bn HUF -1% mn EUR -12%  Return to positive broadband and TV net adds on the fixed line side and outperformance of competition in mobile 886 828 1,989 1,843 98.6 97.9 230 202 

  15. Slide 15: Europe – mobile centric

    Europe – mobile centric. Poland: Revenue  Economy in Poland still robust – although slight decline in GDP growth. mn PLN -1% mn EUR -4% mn CZK -5% mn EUR -4%  Strong contract net adds of 76k outperforming main competitor. Mobile data revenues +19% 1,796 1,779 436 419 6,859 6,530 227 217  Almost f

  16. Slide 16: Systems Solutions: profitability strongly improved

    Systems Solutions: profitability strongly improved. External Revenue (€ million) Revenue (€ million)  Revenue decrease of 1.3% yoy to -1.5% -1.3% €2,246 million in Q2/12  External revenue down by 1.5% to 1,638 1,587 1,726 1,625 1,613 2,276 2,256 2,457 2,245 2,246 €1,613 million due to general pric

  17. Slide 17: Free cash flow: almost stable free cash flow in 1st half year

    Free cash flow: almost stable free cash flow in 1st half year creates headroom in second half year. Free Cash Flow1 H1 over H1 and development in H2 (€ million)  As expected free cash flow benefitted in H1 from lower taxes and interest payments 6,421  Additionally €0.2 billion less ~€6 billion inv

  18. Slide 18: Net profit development Q2/12

    Net profit development Q2/12. Net profit Q2/11 over Q2/12 (in € million)  Different timing of restructuring charges compared to 2011 supports net profit +76% in Q2/12  Increase in depreciation predominantly from the US – due to being fully -577 614 consolidated again. Trend will continue 592 -29 1

  19. Slide 19: Balance sheet ratios: stable development

    Balance sheet ratios: stable development. in € billion 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 Balance sheet total 123.1 124.6 122.5 120.5 121.1 Shareholders’ equity 39.3 40.7 39.9 39.8 37.6 Net debt 43.3 43.4 40.1 38.6 41.0 Net debt/adj. EBITDA1 2.3 2.3 2.1 2.1 2.2 Gearing 1.1x 1.1x

  20. Slide 20: Q2 2012 results conference call. Q&A

    Deutsche Telekom’s Q2 2012 results conference call. Q&A. Questions can be asked via the telephone conference call: 0800 182 6766 0800 028 0471 +1 866 306 3455 +49 69 403 59 619. If you want to ask a question, please press “*1”. If you want to cancel your question, please press “#”. 20

  21. Slide 21: Investor Relations contacts

    For further questions please contact the IR department: Investor Relations, Bonn office Investor Relations, New York office Phone +49 228 181 - 8 88 80 Phone +1 212 424 2959 E-Mail investor.relations@telekom.de Phone +1 877 DT SHARE (toll-free) E-Mail investor.relations@telekom.com For further infor

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