Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q1 2015 Earnings Presentation
19 slides from Deutsche Telekom's earnings presentation, May 13, 2015
Slide 1: Deutsche Telekom Q1/15 Results
DEUTSCHE TELEKOM Q1/15 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: Review Q1/15
REVIEW Q1/15
Slide 4: Leading European Telco: Good Start into the Year
LEADING EUROPEAN TELCO: GOOD START INTO THE YEAR Q1/15 FINANCIAL HIGHLIGHTS GROUP Group revenue growth of 13% to €16.8 billion, organic growth of 4.7% Adj. EBITDA growth of 11% to €4.6 billion , organic growth of 5.6%1 FCF of €0.9 billion in line with FY guidance Adj. net profit grows 77% to
Slide 5: Q1/15: Key Figures
Q1/15: KEY FIGURES Q1 € MN 2014 2015 Change REVENUE 14,894 16,842 13.1% ADJ. EBITDA 4,121 4,574 11.0% ADJ. NET PROFIT2 587 1,036 76.5% NET PROFIT2 1,817 787 -56.7% ADJ. EPS (IN €) 0.13 0.23 76.9% EPS (IN €) 0.41 0.17 -58.5% FREE CASH FLOW3 983 865 -12.0% CASH CAPEX4 2,065 2,530 22.5% NET DEBT (IN €
Slide 6: Germany: Good Momentum in Mobile Drives Revenue Growth
GERMANY: GOOD MOMENTUM IN MOBILE DRIVES REVENUE GROWTH REVENUE1 ADJ. EBITDA AND MARGIN (IN %) € mn Mobile Core fixed Wholesale services Others € mn 40.7 41.3 41.6 39.6 34.9 -0.9% +1.9% 2,230 2,256 2,324 2,000 2,211 5,483 5,464 5,587 5,723 5,589 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 1,871 1,881 2,006 2,098 2
Slide 7: Germany Fixed: Strong Uptake in Broadband. Fiber Net-Adds Doubled
GERMANY FIXED: STRONG UPTAKE IN BROADBAND. FIBER NET-ADDS DOUBLED GERMAN BROADBAND MARKET1 ENTERTAIN CUSTOMERS mn 000 -7k +7k -20k +20k +76k +11.6% 29.0 29.2 29.4 29.7 30.1 Cable DSL Competitors 2,255 2,318 2,377 2,442 2,516 5.3 5.5 5.7 5.9 6.2 11.3 11.4 11.4 11.4 11.5 DT +78 +63 +59 +66 +74 12.354
Slide 8: Germany Fixed: Upselling and Fiber Improve Revenue Trends
GERMANY FIXED: UPSELLING AND FIBER IMPROVE REVENUE TRENDS FIXED NETWORK REVENUES (CORE FIXED)1 FIXED REVENUES (FIXED LINE)2 € mn Fixed Revenues Revenues from add-on options € mn -2.0% Variable Revenues Other Revenues 1,809 1,802 1,790 1,778 1,772 251 259 263 270 277 Broadband 3P -2.0% 1,022 1,018 1,
Slide 9: Germany Mobile: German Mobile Market Growing. DT with Focus on Quality
GERMANY MOBILE: GERMAN MOBILE MARKET GROWING. DT WITH FOCUS ON QUALITY GERMAN MOBILE MARKET SERVICE REVENUE CONTRACT NET ADDS € mn Telefonica Vodafone Telekom 000 Own branded Service providers/MVNOs 551 289 432 204 275 235 347 197 198 4831 78 277 -801 -194 4,513 4,594 4,694 4,614 -524 1,333 1,380 1,
Slide 10: Germany: Growth in Capex Accelerates High Speed Infrastructure Roll-out and IP-Migration
GERMANY: GROWTH IN CAPEX FROM 0.7 TO 0.9 BILLION € ACCELERATES HIGH SPEED INFRASTRUCTURE ROLL-OUT AND IP-MIGRATION INS– STATUS LTE ROLLOUT INS– STATUS FIBER ROLLOUT2 POP Household Coverage in %1 coverage in % 74% 82% 46% 38% Q1/14 Q1/15 Q1/14 Q1/15 STATUS IP ACCESSES (RETAIL & WHOLESALE) STATUS IP A
Slide 11: TMUS: Continued Subscriber Momentum, Net Add Forecast Raised
TMUS: CONTINUED SUBSCRIBER MOMENTUM. INDUSTRY LEADING GROWTH IN REVENUE AND ADJ. EBITDA. NET ADD FORECAST RAISED REVENUE AND SERVICE REVENUE NET ADDS US-$ mn in 000 +9.1% Total revenue Total net adds +11.7% Service revenue 2,391 1,470 2,345 2,128 1,818 7,228 7,358 8,132 7,774 Branded: Q1/14 Q2/14 Q3
Slide 12: Europe: Steady Improvement in Organic Revenue Trends
EUROPE: STEADY IMPROVEMENT IN ORGANIC REVENUE TRENDS REVENUE AS REPORTED ORGANIC REVENUE DEVELOPMENT € mn € mn -0.6% -2.9% 3,125 3,163 3,317 3,367 3,106 3,200 3,125 76 -1 66 3,106 -107 -53 Q1/14 Cons./ FX Trad. Mobile Growth Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Decons. Telco & Regulation areas1 Other
Slide 13: Europe: Focus on Technology Leadership and Best Customer Experience
EUROPE: FOCUS ON TECHNOLOGY LEADERSHIP AND BEST CUSTOMER EXPERIENCE IP MIGRATION LTE ROLLOUT IP share of fixed network access lines LTE outdoor pop coverage in mn and % 69.1 +11pp 49.7 29% 40% 53% 38% Q1/14 Q1/15 Q1/14 Q1/15 CUSTOMER BASE CONNECTED HOME 0.0% mn +3.9% TV Connected Home share of Fixed
Slide 14: Systems Solutions: Market Unit with Improved Performance
SYSTEMS SOLUTIONS: MARKET UNIT WITH IMPROVED PERFORMANCE T-SYSTEMS FINANCIALS REVENUE MARKET UNIT € mn € mn TOTAL REVENUE ADJ. OPEX ADJ. EBITDA +1.0% 1,679 1,674 1,678 1,843 1,695 -2.5% -3.2% 11.6% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 2,052 2,001 1,953 1,890 154 138 ADJ. EBIT AND MARGIN MARKET UNIT % 3.3%
Slide 15: Financials: FCF in Line with Full Year Expectations
FINANCIALS: FCF IN LINE WITH FULL YEAR EXPECTATIONS FREE CASH FLOW Q1/151 ADJ. NET INCOME Q1/15 € mn € mn +76.5% -12.0% 244 1,036 983 428 -465 865 -61 1 -81 587 453 -188 Q1/14 Cash gen. Capex (excl. Interest Q1/15 Q1/14 adj. Financial D&A Taxes Minorities Q1/15 from spectrum) & Other EBITDA2 result3
Slide 16: Financials: Balance Sheet Ratios
FINANCIALS: BALANCE SHEET RATIOS € BN 31/03/2014 30/06/2014 30/09/2014 31/12/2014 31/03/2015 BALANCE SHEET TOTAL 117.3 118.0 125.0 129.4 137.5 SHAREHOLDERS’ EQUITY 32.8 32.5 34.0 34.1 37.0 NET DEBT 38.0 41.4 41.8 42.5 46.3 NET DEBT/ADJ. EBITDA1 2.2 2.4 2.4 2.4 2.6 EQUITY RATIO 27.9% 27.5% 27.2% 26.3
Slide 17: Key Message Q1: Executing Along Our Strategy
KEY MESSAGE Q1: EXECUTING ALONG OUR STRATEGY 1 Leading European Telco: Integrated market leader with superior margins and returns. 2 We strengthen our differentiation by best customer experience and by continuously investing into leading access networks and our transformation programs. 3 We are tran
Slide 18: 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 +1 212 301 - 6114 IR representatives: www.telekom.com/ircontacts IR WEBPAGE IR TWITTER ACCOUNT IR YOUTUBE PLAYLIST www.teleko
Slide 19: Thank You!
THANK YOU!