Slide 1: Deutsche Telekom Q4/14 Results
DEUTSCHE TELEKOM Q4/14 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 Q4/14
Me nial a” REVIEW Q4/14
Slide 4: Leading European Telco: Key highlights 2014
LEADING European TELCO: KEY highlights 2014 2014 HIGHLIGHTS Germany: Revenue trends improved (-0.8% 2014 yoy versus -1.3% 2013 yoy). Adj. EBITDA Margin stabilized at 40% level. Improvement in all relevant KPIs: line losses reduced by 25%, Broadband losses stopped. TV net adds +26% (265k), Fiber ne
Slide 5: FY/14: Key figures
FY/14: KEY FIGURES Q4 FY € MN 2013 2014 Change 2013 2014 Change REVENUE 15,665 17,002 8.5% 60,132 62,658 4.2% ADJ. EBITDA 4,060 4,444 9.5% 17,424 17,569 0.8% ADJ. NET PROFIT 355 399 12.4% 2,755 2,422 -12.1% NET PROFIT -752 -110 85.4% 930 2,924 214.4% ADJ. EPS (IN €) 0.08 0.09 12.5% 0.63 0.54 -14.3%
Slide 6: Germany: Revenue growth driven by mobile service revenues
GERMANY: Revenue growth driven by mobile service Revenues REVENUE ADJ. EBITDA AND MARGIN (IN %) € mn Mobile Core fixed Wholesale services Others € mn 41.6 40.7 41.3 35.9 34.9 -1.3% +1.6% 2,027 2,230 2,256 2,324 2,000 5,634 5,483 5,464 5,587 5,723 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 1,957 1,871 1,881 2,006
Slide 7: Germany Fixed: network roll-out drives fiber net-adds to record level
GERMANY Fixed: network roll-out drives fiber net-adds to record level – bb-net adds turn positive GERMAN BROADBAND MARKET1 ENTERTAIN CUSTOMERS mn 000 -22k -7k +7k -20k +20k +12.2% 28.7 29.0 29.2 29.4 29.7 Cable DSL Competitors 2,177 2,255 2,318 2,377 2,442 5.1 5.3 5.5 5.7 5.9 11.2 11.3 11.4 11.4 11.
Slide 8: Germany fixed: Q4 best quarter in revenue trend during 2014
GERMANY fixed: q4 best quarter in revenue trend during 2014 FIXED NETWORK REVENUES (CORE FIXED) FIXED REVENUES (FIXED LINE) € mn Fixed Revenues Revenues from add-on options € mn -2.4% Variable Revenues Other Revenues 1,821 1,809 1,802 1,790 1,778 244 251 259 263 270 TV 1,057 1,046 1,042 1,034 1,025
Slide 9: Germany mobile: German mobile market grows again
GERMANY mobile: German mobile market grows again – dt continues to outperform GERMAN MOBILE MARKET SERVICE REVENUE CONTRACT NET ADDS € mn Telefonica Telekom 000 Own branded Service providers/MVNOs 638 Vodafone 551 280 432 204 275 235 358 347 197 277 78 198 +0.2% -801 4,694 -5243 4,606 4,513 4,594 4,
Slide 10: Germany: Accelerated LTE roll-out, fiber roll-out and IP-migration on track
germany: ACCELERATED LTE roll-out. FIBER Roll-out and ip-migration on track. INS– STATUS LTE ROLLOUT INS– STATUS FIBER ROLLOUT2 POP Coverage in mn Coverage households 18.7 in mn and %1 65.3 and % 15.0 54.7 44% 37% 67% 80% Q4/13 Q4/14 Q4/13 Q4/14 STATUS IP ACCESSES (RETAIL & WHOLESALE) STATUS IP ACCE
Slide 11: TMUS: continued net add momentum
TMUS: continued net add momentum Accelerating revenue growth and strong adjusted ebitda growth REVENUE AND SERVICE REVENUE NET ADDS US-$ mn in 000 +13.6% Total revenue Total net adds +17.5% Service revenue 1,645 2,391 1,470 2,345 2,128 6,959 7,228 7,358 8,132 Branded: Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 6
Slide 12: Europe: ongoing cost savings limit impact of revenue decline
EUROPE: ongoing cost savings limit impact of revenue decline on profitability REVENUE AS REPORTED ORGANIC REVENUE DEVELOPMENT € mn € mn -3.4% -4.3% 3,486 3,125 3,163 3,317 3,367 3,486 3,515 55 -26 7 3,367 -51 -104 Q4/13 Cons./ FX Trad. Mobile Growth Q4/14 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Decons. Telco
Slide 13: Europe: continued growth in broadband and TV base
EUROPE: continued growth in broadband and tv base POCKETS OF GROWTH – BROADBAND AND TV1 NET ADDS – BROADBAND AND TV1 mn broadband accesses TV customers in 000 broadband net adds TV net adds 5.01 5.07 5.14 5.18 5.29 3.50 3.56 3.62 3.67 3.72 105 109 70 58 55 54 61 71 38 51 Q4/13 Q1/14 Q2/14 Q3/14 Q4/1
Slide 14: Europe: ongoing revenue and network transformation
EUROPE: ongoing REVENUE and network TRANSFORMATION REVENUE TRANSFORMATION TECHNOLOGY AND COST TRANSFORMATION Growth Areas1 Connected Home share IP share of EU fixed FTEs in 000 share of total revenues of fixed revenues network access lines (end of period) +1pp +1pp +12pp -2% 25% 26% 22% 23% 39% 53 5
Slide 15: Systems Solutions: cost reduction continues
SYSTEMS SOLUTIONS: cost reduction Continues – Market unit with improved revenue trend and EBIT-MArgin T-SYSTEMS FINANCIALS REVENUE MARKET UNIT € mn € mn TOTAL REVENUE ADJ. OPEX ADJ. EBITDA -3.1% 1,902 1,679 1,674 1,678 1,843 -7.1% -9.1% 6.5% Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2,468 2,336 212 2,294 2,123
Slide 16: Financials: FY FCF in line with guidance of around 4.2 billion
FINANCIALS: FY FCF in line with Guidance of around 4.2 billion FREE CASH FLOW FY 2014 ADJ. NET INCOME FY 2014 € mn € mn -10.1% -12.1% 4,606 2,755 2,422 622 -673 4,140 145 -12 -415 -15 -341 -110 FY 2013 Cash gen. Capex (excl. Interest FY 2014 FY2013 adj. Financial D&A Taxes Minorities FY 2014 from sp
Slide 17: Financials: ROCE, EPS and net debt
FINANCIALS: ROCE, EPS And net debt DEVELOPMENT ADJ. EPS FY 2014 ROCE DEVELOPMENT FY 20142 € mn % -14.3% +1.7pp 0.63 0.54 0.03 5.5 -0.08 -0.02 -0.02 3.8 4% w/o Scout and swap effect Q4/13 adj. D&A Taxes Others Q4/14 FY 2013 NOPAT NOA FY 2014 EBITDA NET DEBT DEVELOPMENT Q4 € bn 42.5 41.8 0.6 -1.0 0.5
Slide 18: Financials: Balance sheet ratios within target ranges
FINANCIALS: BALANCE SHEET ratios within target ranges € BN 31/12/2013 31/03/2014 30/06/2014 30/09/2014 31/12/2014 BALANCE SHEET TOTAL 118.1 117.3 118.0 125.0 129.4 SHAREHOLDERS’ EQUITY 32.1 32.8 32.5 34.0 34.1 NET DEBT 39.1 38.0 41.4 41.8 42.5 NET DEBT/ADJ. EBITDA1 2.2 2.2 2.4 2.4 2.4 EQUITY RATIO 2
Slide 19: Guidance
GUIDANCE GUIDANCE 2015 GUIDANCE 2015 2014 RESULTS Reported ON A CONSTANT CURRENCY BASIS1 ON CURRENT $/€ EXCHANGE RATE2 € BN $/€: 1.33 $/€: 1.13 REVENUE 62.7 Growth Growth ADJ. EBITDA 17.6 around 18.3 around 19.3 FCF 4.1 around 4.3 around 4.3 1 Guidance based on constant exchange rates (Average $/€ e
Slide 20: Further questions please contact the IR department
FURTHER QUESTIONS PLEASE CONTACT THE IR DEPARTMENT INVESTOR RELATIONS Phone +49 228 181 - 8 88 80 E-Mail investor.relations@telekom.de For further information please visit www.telekom.com/investors IR WEBPAGE IR TWITTER ACCOUNT IR YOUTUBE PLAYLIST 20
Slide 21: Thank you!
ened oo” THANK YOU!