Slide 1: Deutsche Telekom Q3/15 Results
DEUTSCHE TELEKOM Q3/15 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 Q3/15
REVIEW Q3/15
Slide 4: Leading European Telco: Key Messages Q3
LEADING European TELCO: KEY MESSAGES Q3 1 On track for our 2015 guidance and our Capital Markets Day targets. We re-iterate our guidance. Strong growth in all relevant financial KPIs. Germany growing in top-line revenues 2 All-IP migration and fiber expansion in Europe and LTE roll-out in Europe and
Slide 5: 9M/15: Financial Highlights
9M/15: Financial Highlights Q3 9M € MN 2014 2015 Change 2014 2015 Change REVENUE 15,648 17,099 +9.3% 45,656 51,369 +12.5% ADJ. EBITDA 4,575 5,165 +12.9% 13,125 14,765 +12.5% ADJ. NET PROFIT 800 1,040 +30.0% 2,023 3,154 +55.9% NET PROFIT 506 809 +59.9% 3,034 2,308 -23.9% ADJ. EPS (IN €) 0.17 0.22 +29
Slide 6: Transactions: continued portfolio transformation
Transactions: continued portfolio transformation T-ONLINE TRANSACTION Merger of T-Online portal business and Interactive Media into Stroer Value crystallization of non-strategic assets with DT receives Stroer shares worth 0.4 billion € currently strong partners SCOUT24 IPO Successful IPO of
Slide 7: Germany: on track for stable adj. EBITDA in 2015
GERMANY: on track for stable adj. ebitda in 2015 REVENUE REPORTED1 ADJ. EBITDA AND MARGIN (IN %) € mn Mobile Core fixed Wholesale services Others € mn 41.6 39.6 39.9 40.8 34.9 -2.4% +0.1% 2,324 2,000 2,211 2,224 2,269 5,587 5,723 5,589 5,580 5,593 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 2,006 2,098 2,061 2,04
Slide 8: Germany mobile: continued market outperformance
GERMANY mobile: continued market outperformance GERMAN MOBILE MARKET SERVICE REVENUE1 CONTRACT NET ADDS4 € mn Telefonica Vodafone Telekom 000 Own branded Service providers/MVNOs 432 289 408 363 235 483 172 144 ≈ -1% 198 277 236 220 -801 -195 4,694 4,614 4,532 4,566 4.7 -524 1,424 1,391 1,354 1,381 Q
Slide 9: German mobile service revenues: healthy underlying momentum
german mobile service revenues: healthy underlying momentum REPORTED MOBILE SERVICE REVENUES IMPACT OF CONVERGENCE PRODUCTS1 UNDERLYING GROWTH Q3/14 -0.1% Q3/14 Q3/14 -0.1% Q4/14 +1.8% Q4/14 0.2% Q4/14 2.0% Q1/15 +2.8% Q1/15 0.7% Q1/15 3.5% Q2/15 +0.1% Q2/15 1.0% Q2/15 1.1% Q3/15 -0.4% Q3/15 1.4% Q3
Slide 10: Germany Fixed: strong growth with fiber
GERMANY Fixed: strong growth with fiber GERMAN BROADBAND MARKET1 ENTERTAIN CUSTOMERS mn 000 -20k +20k +76k +81k +78k +10.7% 29.4 29.7 30.0 30.3 30.6 Cable Telco Competitors 2,377 2,442 2,516 2,578 2,632 5.7 5.9 6.1 6.3 6.5 11.4 11.4 11.5 11.5 11.5 DT +59 +66 +74 +62 +54 12.3 12.4 12.4 12.5 12.6 DT n
Slide 11: Germany fixed: Broadband revenues growing
GERMANY fixed: Broadband revenues growing FIXED NETWORK REVENUES (CORE FIXED)1 BROADBAND REVENUES2 € mn Broadband revenues Other revenues € mn +0.9% Single play revenues 1,273 1,273 1,273 1,280 1,285 263 270 277 285 291 Broadband 3P -2.0% Broadband 2P 1,010 1,003 996 995 994 2,500 2,503 2,452 2,439
Slide 12: German total service revenues: Execution towards CMD ambition levels
german Total service revenues: Execution towards CMD ambition levels GROWTH RATES YOY MOBILE SERVICE REVS WHOLESALE REVS3 BROADBAND REVS2 TOTAL SERVICE REVS Q3/14 -0.1% -2.7% -0.7% -2.0% Q4/14 +1.8% -1.7% -0.2% -0.9% Q1/15 +2.8% -1.9% 0.0% -0.6% Q2/15 +0.1% 0.0% 0.2% -1.3% Q3/15 -0.4% 3.0% 0.9% -0.6
Slide 13: Germany: investing in LTE, fiber and all-IP
germany: investing in LTE, fiber and all-ip INS – STATUS LTE ROLLOUT INS – STATUS FIBER ROLLOUT2 POP +8pp Coverage in % 50% Coverage in %1 and millions of 40% 79% 87% households +27% 16.5 21.0 Q3/14 Q3/15 Q3/14 Q3/15 STATUS IP ACCESSES (RETAIL & WHOLESALE) STATUS IP ACCESSES (RETAIL & WHOLESALE) mn
Slide 14: TMUS: 10th successive quarter of over 1M net adds
TMUS: 10th successive quarter of over 1M net ADDS DRIVING STRONG FINANCIAL GROWTH REVENUE AND SERVICE REVENUE NET ADDS US-$ bn +11.8% in 000 Total revenue Total net adds +6.7% Service revenue 2,345 2,128 1,818 2,072 2,312 7.4 5.5 8.1 5.7 7.85.7 8.2 6.0 7.8 6.2 Branded: Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
Slide 15: TMUS: Key drivers trending well
TMUS: KEY DRIVERS TRENDING WELL BRANDED POSTPAID PHONE CHURN BAD DEBT EXPENSES AND LOSSES FROM FACTORING in % in US$ -18bps 30.3% 1.64 1.73 1.30 1.32 1.46 152 150 169 156 198 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Positive porting ratios against all carriers Higher EIP bad d
Slide 16: Europe: Revenue transformation continuing as expected
EUROPE: Revenue transformation continuing as expected REVENUE AS REPORTED ORGANIC REVENUE DEVELOPMENT € mn € mn -3.7% -3.6% 3,317 3,322 0 5 -147 3,198 3,317 3,367 3,106 3,136 3,198 -37 -16 76 Q3/14 Cons./ FX Trad. Discont. Mobile Growth Q3/15 Decons. Telco business1 regulation areas2 Q3/14 Q4/14 Q1/
Slide 17: Europe: investing in technology leadership
EUROPE: investing in technology leadershiP IP MIGRATION LTE ROLLOUT IP share of fixed network access lines LTE outdoor pop coverage in mn and % 85.1 +10pp 55.0 35% 45% 65% 42% Q3/14 Q3/15 Q3/14 Q3/15 CUSTOMER BASE1 +0.6% FIBER ROLLOUT mn +4.7% TV Fiber household coverage Broadband +4pp +4.4% Mobile
Slide 18: Systems Solutions: Market unit with shift in revenue base to growth areas
SYSTEMS SOLUTIONS: Market unit with shift in revenue base to growth areas T-SYSTEMS FINANCIALS REVENUE MARKET UNIT € mn € mn TOTAL REVENUE ADJ. OPEX1 ADJ. EBITDA +4.6% Tel-IT MU 1,843 1,678 1,695 1,734 1,755 +2.3% +4.0% -6.1% Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 2,068 2,115 1,885 1,962 197 185 389 360 267
Slide 19: Financials: adj. EBITDA driving FCF and net income
FINANCIALs: adj. ebitda driving fcf and net income FREE CASH FLOW Q3/151 ADJ. NET INCOME Q3/15 € mn +16.3% € mn +30.0% 1,125 1,308 239 -205 149 38 1,040 800 590 -126 -39 -223 Q3/14 Cash gen. Capex (excl. Interest Q3/15 Q3/14 adj. Financial D&A Taxes Minorities Q3/15 from spectrum) & Other EBITDA res
Slide 20: Financials: Balance sheet ratios within the target corridor
FINANCIALS: BALANCE SHEET ratios within the target corridor € BN 30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015 BALANCE SHEET TOTAL 125.0 129.4 137.5 135.0 135.2 SHAREHOLDERS’ EQUITY 34.0 34.1 37.0 36.0 36.5 NET DEBT 41.8 42.5 46.3 48.8 47.9 NET DEBT/ADJ. EBITDA1 2.4 2.4 2.6 2.6 2.5 EQUITY R
Slide 21: Executing our strategy
Executing 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 transforming towards a lea
Slide 22: Conference call with Q&A session
Conference call with q&a Session The conference call will be held on November 5 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET. DT Participants: Tim Höttges (CEO), Thomas Dannenfeldt (CFO), Hannes Wittig (Head of IR) WEBCAST DIAL-IN The link to the webcast will be provided here 20 minutes before the call DE
Slide 23: 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 24: Thank you!
THANK YOU!