Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Investor Day (March 2010)
26 slides from Deutsche Telekom's investor day presentation, Mar 18, 2010
Slide 1: Deutsche Telekom Investor Day. T-Systems: Enabler of Connected Life & Work
Deutsche Telekom Investor Day. T-Systems: Enabler of Connected Life & Work. Reinhard Clemens, CEO, and Klaus Werner, CFO March 18, 2010
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
Slide 3: DT Group Strategy: Fix – Transform – Innovate
DT Group Strategy…. FIX – TRANSFORM – INNOVATE …will be implemented through five initiatives: Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-centric across all screens integrated assets gigab
Slide 4: The challenge ahead
The challenge ahead. FIX – TRANSFORM – INNOVATE Roadmap to Success + 2011 onwards + 2010 Increase profitability + 2009 Profitable growth 2008 Streamline & execute Restructure Successful closing of new customer deals Strong adj. EBIT margin improvement Best TRI*M index ever 4
Slide 5: Achievements since 2007
Achievements since 2007. FIX – TRANSFORM – INNOVATE Big Deals (TCV) Adj. EBIT Margin* Cash Contribution* Customer Satisfaction Employee Satisfaction x2 2.6% (€ mn) 242 (TRI*M) 74 53% 61 37% 2007 2009 2007 2009 2007 2009 2007 2009 2007 2009 FTE International MPLS PoPs Internat. SAPS Offshore Rev. SI
Slide 6: Regional performance of revenue and adj. EBIT
Regional performance of revenue and adj. EBIT. FIX – TRANSFORM – INNOVATE Germany Western Europe +139% 6,634 +57% 6,153 1,968 2,023 Americas 196 Asia n.m. 82 n.m. -96 -41 135 465 395 2008 2009 106 2008 2009 20 Africa Eastern Europe 1 -6 +1 n.m. -27% 2008 2009 2008 2009 105 587 577 89 94 69 Revenue i
Slide 7: Solid performance compared to competitors
Solid performance compared to competitors. FIX – TRANSFORM – INNOVATE Benchmark Revenue Δ 2009/2008 -- 5.8 % -- 6.6 % -- 11.8 % -- 6.5 % -- 3.9 % -- 8.8 % -- 16.1 % Source: revenues derived from company and broker reports 7
Slide 8: The dimensions of T-Systems
The 4 dimensions of T-Systems. FIX – TRANSFORM – INNOVATE Functional View CEO Sales Delivery Cross Functions Country View Customer View 20+ countries Product/Solution View Computing Services Desktop Services Systems Integration Telecommunications 8
Slide 9: Gross Profit is key steering parameter
Gross Profit is key steering parameter. FIX – TRANSFORM – INNOVATE Steering Logic 2008 2009 Revenue 100% 100% Material & Production costs Gross Profit (margin) 18.7% 20.4% Computing Services 12.9% 16.2% Impacted Impacted 14.1% by Sales Desktop Services by Delivery 12.2% Systems Integration 15.6% 20.
Slide 10: Save for Service program 2009: Total cost reduction of €595mn
Save for Service program 2009: FIX – TRANSFORM – INNOVATE Total cost reduction of € 595mn. Cost Savings YE 2009 Total Opex (€ mn) (€ bn) 595 224 8.7 -0.7 8.0 154 43 33 141 Cost reduction ICT Systems Corporate G&A International 2008 2009 Jan - Dec Operations Integration Customers 2009 Sales 10
Slide 11: Sequential increase in profitability
Sequential increase in profitability. FIX – TRANSFORM – INNOVATE Adj. EBIT Quarterly Performance (€ mn) 0.7% -0.3% 0.5% 1.8% 1.6% 2.7% 3.0% 3.1% 73 48 58 64 34 16 12 -7 2007* Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 / % = Adj. EBIT margin *Adj. EBIT 2007 excluding Media & Broadcast and Active
Slide 12: Our ambition: Grow adj. EBIT margin towards peer level
Our ambition: FIX – TRANSFORM – INNOVATE Grow adj. EBIT margin towards peer level. Adj. EBIT Margin Benchmark Adj. EBIT Margin 2009 15.3% 14.6% Ø ~7% 13.5% 7.9% 2.6% 7.1% 0.7% 5.7% 229 69 4.9% 2.6% 2007 2008 2009 2010 2011 2012 1.4% -4.2% Source: EBIT margin derived from company and broker reports 1
Slide 13: Save for Service program 2010-2012: Further efficiency increase
Save for Service program 2010-2012: FIX – TRANSFORM – INNOVATE Further efficiency increase. Cost Savings 2010 S4S* Total Gross Savings (€ bn) (€ bn) 0.5 0.3 1.2 0.1 0.5 0.1 0.03 Cost reduction ICT Systems Corporate G&A 2010 2010-2012 Jan - Dec 2010 Operations Integration Customers (incl. Detecon Sal
Slide 14: Save for Service 2010: Migration of data centers
Save for Service 2010: FIX – TRANSFORM – INNOVATE Migration of data centers. Migration of customer data centers to highly efficient Twin Core locations of T-Systems Current Mode of Operation - Customer Amsterdam London Eindhoven Future Mode of Operation - T-Systems Munich Twin Core data center Custo
Slide 15: Competencies: from cloud services to industry solutions
Competencies: from cloud services to industry FIX – TRANSFORM – INNOVATE solutions in energy, health, connected car and media distribution. Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-cent
Slide 16: Dynamic net-centric sourcing
Dynamic net-centric sourcing. FIX – TRANSFORM – INNOVATE Cloud Services Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-centric across all screens integrated assets gigabit society ICT solutio
Slide 17: Collaboration
FIXCollaboration Collaboration. – TRANSFORM – INNOVATE Cloud Services Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-centric across all screens integrated assets gigabit society ICT solutions
Slide 18: Mobile Enterprise
Mobile Enterprise. FIX – TRANSFORM – INNOVATE Cloud Services Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-centric across all screens integrated assets gigabit society ICT solutions assets C
Slide 19: Security & Governance
Security & Governance. FIX – TRANSFORM – INNOVATE Cloud Services Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-centric across all screens integrated assets gigabit society ICT solutions asse
Slide 20: Competencies: from cloud services to industry solutions
Competencies: from cloud services to industry FIX – TRANSFORM – INNOVATE solutions in energy, health, connected car and media distribution. Fix Transform Innovate Improve Leverage Build networks and Connected work performance of Connected life one company in processes for the with unique mobile-cent
Slide 21: Energy: ICT enabled grids for decentralized power distribution
Energy: ICT enabled grids to match demand FIX – TRANSFORM – INNOVATE Industry Solutions and supply of decentralized power distribution. Smart Grid Concept Market Potential (EU, € mn) Cooperation Examples Smart Grid pilot (incl. purchase optimization, demand side management, 3,310 virtual power pla
Slide 22: Health: Metering and IT solutions for health care efficiency
Health: Metering and IT solutions for FIX – TRANSFORM – INNOVATE Industry Solutions increased efficiency in health care system. eHealth Concept IT Market Potential (GER, € mn) Cooperation Examples Pilot project Home Care T-City Cardio Beat study, +4% Partnership for the heart 3,874 Internet mobi
Slide 23: Connected Car: the next device for digital content and communications
Connected Car: FIX – TRANSFORM – INNOVATE Industry Solutions the next device for digital content and communications. Connected Car Concept Market Potential (GER, € mn) Cooperation Examples Connected Car Concept 10mn new vehicles with device Continental together with connectivity p.a. in Europe T
Slide 24: Media Distribution: New business models for online media
Media Distribution: FIX – TRANSFORM – INNOVATE Industry Solutions New business models for the world of online media. CDN* Concept Market Potential (World, € mn) Cooperation Examples Global IP Traffic will quintuple (e.g. Internet Video) Content & Content delivery networks will grow Applications
Slide 25: T-Systems' ambition level 2012
T-Systems’ ambition level 2012. 2009 Ambition Level 2012 Revenue growth above industry average in Growth Revenue decline: -5.8% corresponding segments Fair market share in innovative “industry solutions”1 Strong TRI*M Index over peer average and Quality Excellent TRI*M: 74 pt above 75 pt
Slide 26: What our customers say
What our customers say. Quelle 26