Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Investor Presentation (May 2016)
58 slides from Deutsche Telekom's investor presentation, May 2016
Slide 1: Deutsche Telekom Company Presentation
DEUTSCHE TELEKOM COMPANY PRESENTATION
Slide 2: Overview
DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW 01 Deutsche Telekom 02 Strategy & Transformation 03 Network, Products & Innovation 04 Service & Brand 2
Slide 3: Deutsche Telekom Profile
DEUTSCHE TELEKOM PROFILE Customers & Markets Facts & Figures Customers Markets Telekom in figures, 2015 Employees & responsibility Present in 50 countries Revenue € 69.2 bn Employees worldwide: 225,000 156 m mobile customers 8,600 trainees and cooperative 29 m fixed-network customers/ Ge
Slide 4: Germany
GERMANY 40 million mobile customers € 22.4 billion revenue Biggest (V) DSL provider in Germany € 8.8 billion EBITDA 12.6 million broadband lines 68,638 employees 2.7 million IPTV customers incl. satellite 110,354 employees in Germany overall Financial figures taken from DT's 2015 annual report DEUTS
Slide 5: Europe & United States
Europe & United states Europe: Present in 13 countries 52.2 million mobile customers 5 million broadband lines T-Mobile US: 3.9 million IPTV, satellite, cable customers 63.3 million mobile customers iPhone in all European markets USD 32.07 billion revenue € 12.7 billion revenue USD 7.36 billion EBIT
Slide 6: T-Systems
T-SYSTEMS Information technology and telecommunications services in all industries: automotive, finance, transport, retail & public sector € 8.6 billion revenue Pioneer in cloud computing € 0.8 billion EBITDA Corporate customers, multinational corporations & public sector 46,000 employees Financial
Slide 7: How we see ourselves
HOW WE SEE OURSELVES WHAT CONNECTS US. It is in our nature to seek the company of others: humans need this interaction in Our network is an artery pumping life: fast, reliable and secure. order to move forward. Sharing fosters closeness. It is the very reason we choose to It provides easy access to
Slide 8: We take responsibility
We take responsibility Data privacy Diversity Sponsorship Leading role in data privacy & data security Leading role in societal and diversity-related issues Commitment to culture & sport Data Privacy Report & Pioneer as first to introduce Group-wide Amateur & professional sports Security on th
Slide 9: We take responsibility: Corporate responsibility
We take responsibility CORPORATE RESPONSIBILITY Sustainability & social engagement Groundbreaking projects Environmental and climate protection Group climate protection target: E.g., CO2 reduction, efficient use of resources, 20% less CO2 by 2020 sustainable mobility Social engagement & stakeholde
Slide 10: Our guiding principles
OUR GUIDING PRINCIPLES Customer delight and Respect and integrity Team together – Best place to perform I am T – simplicity drive our guide our behaviour Team apart and grow count on me action DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Service & BRAND 10 Guiding Princi
Slide 11: Overview
DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW 01 Deutsche Telekom 02 Strategy & Transformation 03 Network, Products & Innovation 04 Service & Brand 11
Slide 12: Changing industry's paradigms
Changing industry’s paradigms internet of things virtualization data analytics convergence digitization self-service sharing bandwidth modularization mix and match All-IP softwarization individualization coverage reliability apps convenience hybrid networks synchronity stability LTE simplicity open
Slide 13: Customer trends
Customer trends sharing in a connected world LTE WLAN FIBRE Phone by Apple Seamless connectivity Contract by Telekom Individual Telekom.de LTE 16:45 38 % HYBRID mix & match 25 different apps1 Sharing is the new having Appification: one use case, one app Intuitive and simple interfaces – mobile
Slide 14: Technology trends
Technology trends convergence & virtualization SOFTWARIZATION VIRTUALIZATION CONVERGENCE DATA ANALYTICS Software defined networks Network function virtualization Hybrid Modern in-memory platform Service Programming Service A Service B Fixed net for Transact & analyze data in real-time base load
Slide 15: Business model trends: OTT disruption
Business model trends OTT disruption TELCO BUSINESS MODEL OTT BUSINESS MODEL Asset-heavy Asset-light network invest portfolio extension 5 5 Usage-based Ad-based monetization monetization Open Closed 4 platforms 1 PREMIUM FREEMIUM 1 platforms 4 SERVICE SERVICE Interoperable De-facto standards DISRUPT
Slide 16: We fight for control over our value points
We fight for control over our value points Customer relationships dominated through app Virtualized access Telco service Retailization of device and content stores, OTT Infrastructure projects through eSIM substitution distribution enforced by eSIM payment solutions and online service moves Access e
Slide 17: Our strategy
Our strategy LEADING EUROPEAN TELCO BEST INTEGRATED WIN WITH LEAD IN CUSTOMER IP NETWORKS PARTNERS BUSINESS EXPERIENCE TRANSFORM PORTFOLIO EVOLVE FINANCIAL TARGETS & EFFICIENCY ENCOURAGE LEADERSHIP & PERFORMANCE DEVELOPMENT DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Se
Slide 18: Our core beliefs
Our core beliefs WE ARE THE TRUSTED PARTNER FOR OUR CUSTOMERS We relentlessly strive for delivering the best customer experience Our products make “life is for sharing” simple, reliable and secure Our networks provide best seamless connectivity Sales and service processes go digital, omni-chan
Slide 19: Our seamless high performing network
Our seamless high performing network TECHNOLOGY LEADERSHIP SUPERIOR SPEED AND COVERAGE – SEAMLESS ACCESS We push a highly competitive fiber based infrastructure and at the same Target picture: Integrated time stick to our capex envelope! 95% LTE pop-coverage1 in 2018 with up to 300 Mbps Fiber ho
Slide 20: Our superior production model
Our superior production model DIGITAL TRANSFORMATION OF CUSTOMER FACING PROCESSES COST EFFICIENCY & SIMPLICITY ALL-IP-TRANSFORMATION PAN-EUROPEAN NETWORK INTEGRATED NETWORK STRATEGY PSTN migration 1 LTE roll-out in all NatCos 2 Optical fiber 3 Vectoring Centralized, virtualized architecture and 4 Hy
Slide 21: Our integrated customer proposition
Our integrated Customer proposition Mobile L Internet S M SERVICE DSL CLOUD KOMMUNI- KATION L Access S M ER ENTER- LEBEN TAINMENT Product world in silos SICHERHEIT Every tariff element to be booked separately Simplified tariff scheme Convergent portfolio, also beyond Data as key differenti
Slide 22: Partnering strengthens our customer proposition
Partnering strengthens our customer proposition WIN-WIN-WIN THROUGH PARTNERING ACHIEVEMENTS AND AMBITION OF PARTNERING 6 CUSTOMERS 2.3 One-stop shopping Subscriber (mn.) Integrated proposition Best digital products 2014 2018 300 100 Revenue (€ mn.) 2014 2018 PARTNER DT 6 Product reach Plat
Slide 23: Open & interoperable platforms
open & interoperable platforms INDUSTRIAL INTERNET EXAMPLE: CONNECTED CAR Pure Data Platform Car Industry Secure Smart Data fuels the next industrial revolution: Connect. Mgmt. Services Solutions Autocloud Lot sizes of 1 Data-driven services (context & 3rd party data) Autonomous robots Real-
Slide 24: Innovation drives future differentiation
Innovation drives future differentiation INTEGRATED BEST CUSTOMER WIN LEAD IN IP NETWORKS EXPERIENCE WITH PARTNERS BUSINESS INNOVATION @ DT ... PAN-Net/NG-/All-IP Communication “Steckerleiste” M2M ... is leading edge: e.g. Hybrid, QoS Security Strategic Partners Cloud Super-Vectoring, Qivicon Hybr
Slide 25: Europe's most valuable and most reliable telecommunications brand
EuropE’s most valuable and most reliable telecommunications brand MOST TRUSTED BRAND FOR INTERNET AND MOBILE COMMUNICATIONS1 Most valuable brand 46 among European telcos 24 24 21 21 19 18 17 15 9 8 Most trusted brand for Internet and mobile communications Source: Institut für Demoskopie Allensbach,
Slide 26: Regulation must keep pace with reality
Regulation must keep pace with reality Revenue Scalability Adjust regulatory frameworks to reinvigorate Access Devices Services User experience Enable economies of scale to yield dynamic industry growth efficiency gains Review pricing regulation Promote market consolidation Allow quality diffe
Slide 27: We follow a clear portfolio strategy
We follow a clear portfolio strategy ACHIEVEMENTS M&A POLICY GOING FORWARD Strategic solution: building FMC market leader 1 Europa Premium valuation: £12.5 bn EV Selective and minor FMC/ICT acquisitions in our core integrated Upside via participation in synergies markets, but only for attrac
Slide 28: We reduce our indirect cost ex TMUS
We reduce our indirect cost ex TMUS “VARIABILIZATION OF COST” (EX US) … … DRIVEN BY REVENUE GROWTH AND INDIRECT COST REDUCTION Share of direct and indirect1 cost (ex US) € bn -€0.8 bn CAGR ≈ 1-2% 10.4 driven by revenue growth -€0.4 bn Ambition €-1.8 bn ≈ indirect cost1 reduction -€0.5 bn 67% 65% 61%
Slide 29: The best team puts our strategy in action
The best team puts our strategy in action LEADING EUROPEAN TELCO More… Leadership …collaborate, innovate and empower to perform. Live new leadership culture Diversity …international mindset. Foster international job rotation Responsibility …clear leadership and ownership. Ensure clear end-to-end res
Slide 30: Operational and financial priorities per segment
Operational and financial priorities per segment GERMANY EUROPE USA T-SYSTEMS MU Superior All-IP production model First to move to pan-European All- Un-carrier strategy: TSI 2015+ Execution and INS rollout! IP production model 2.2–3.2 mn branded postpaid No. 1 choice for customers via
Slide 31: Overview
DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW 01 Deutsche Telekom 02 Strategy & Transformation 03 Network, Products & Innovation 04 Service & Brand 31
Slide 32: Integrated IP Networks
INTEGRATED IP NETWORKS All-IP Transformation Pan-European Network Integrated network strategy 1 LTE rollout 2 Fiber 3 Vectoring 4 Hybrid Access PAN NET LTE Device Hybrid DSL Shift to IP-Platform until 2018 DT Technology leader Build out of modern infrastructures: European production LTE, Fib
Slide 33: Integrated network strategy: Infrastructure
INTEGRATED NETWORK STRATEGY Infrastructure LTE Roll-Out Optical Fiber D: 95% LTE PoP-coverage1 in 2018 D: Glass Fiber household footprint of 1 LTE Roll-Out with up to 300 MBit/s ≈ 80% in 2018 with at least 50 MBit/s EU: 75 – 95%2 LTE-PoP-coverage depending on regulatory adjustments + in 2018 w
Slide 34: Best network & network build-out in Germany
BEST NETWORK & NETWORK BUILD-OUT IN GERMANY Example Germany Leader in broadband quality for mobile and fixed network Innovative products Biggest bandwidths Best network coverage AWARDS For the fives time in succession: Telekom wins the major CHIP network test Connect network test: top po
Slide 35: Best Network Europe
BEST Network EuropE Facts Europe Network coverage 12 Countries LTE in all markets (AMC 2015) LTE coverage Testing LTE Advanced Fibre, Vectoring and Hybrid as Network-Booster 2018: 75 – 95% Europe first IP-Network in Mazedonia and DT worldwide first company with Europe wide IP-network Terastrea
Slide 36: Products & Services
PRODUCTS & SERVICES Consumers Business customers Innovation & Partner Services Cutting-edge mobile communications and Information & communication Partner for infrastructure access broadband experience technology (ICT) solutions and network services TV Outsourcing & cloud services Platfor
Slide 37: Products & services consumers
PRODUcts & services consumers Cutting-edge broadband and mobile communications experience WiFi Mobile Hybrid router communications/ Optical fiber/VDSL mobile Internet IP telephony Communication Innovative Entertainment services services Smart Home DEUTSCHE TELEKOM StrategY & Transformation Network,
Slide 38: Products & services consumers: Germany
PRODUcts & services consumers EXAMPLE: GERMANY Service Cloud Communi- Cation MagentaONE Living Entertain- ment Magenta Magenta Home Mobil DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Service & BRAND 38 Products: MagentaONE
Slide 39: Entertainment: (IP)TV and entertainment services
Entertainment (IP)TV aND ENTERTAINMENT-services (IP) TV Entertainment-Services Music streaming via Spotify Unlimited music streaming with more than 30 million songs available Deutsche Telekom footprint anywhere over smartphone, tablet, or PC Deutsche Telekom footprint with (IP)TV service Int
Slide 40: Communication services: Cloud, Security, E-mail
COMMunication Services CLOUD, Security, E-mail Telekom Cloud Security DE-MAIL Photos, videos and music whenever, wherever Telekom Security Package: Secure/legally binding e-mail “from the cloud” Security everywhere – reliable protection against ”No letter, but signed and sealed“ Deutsche T
Slide 41: Smart Home
SMART HOME Smart Home – Home control on the move Control the entire house with Smart Home via a smartphone app and save money as you do so. Enjoy the feeling of having everything under control: Demand-based heating – no more cold homes Start washing machines and other appliances when on the move
Slide 42: Products & services for business customers
PRODUCTS & SERVICES FOR BUSINESS CUSTOMERS Information & communication technology solutions (ICT) Intelligent network solutions ICT expertise Dynamic IT access Automobile & cloud portfolio (cloud computing) Collaboration Mobile company Energy Health (cloud services) DEUTSCHE TELEKOM: PROFILE STRATEG
Slide 43: Services for business customers
SERVICES FOR BUSINESS CUSTOMERS Security Reliability Transformation Flexibility Data is subject to German Failure safety (24/7 availability) Optimization of networks, servers, Parallel use of private and public data protection regulations Access from every location must be and applications
Slide 44: T-Systems – performance
T-Systems – performance Worldwide deliverability Develop new business models Analytics Managed seats worldwide Approx. 1,355 million Develop new forms of collaboration Mobile collaboration Number of data centers (globally) 53 data centers (DCs) Use new sales channels with greater flexibility and
Slide 45: Industry expertise
Industry expertise Manage 70 % of top 100 companies in all industries across Germany No. 1 in Germany in the public sector in Germany in the transportation sector No. 2 in EMEA for manufacturing No. 3 in Germany in the utilities sector Last revised: Q1/2015 DEUTSCHE TELEKOM: PROFILE STRATEGY & TRANS
Slide 46: Pioneer in cloud computing
Pioneer IN CLOUD COMPUTING T-Systems has been offering solutions via dynamic platforms for more than ten years More than 36,000 cloud systems worldwide in operation More than 300,000 employees in customer companies communicate via T-Systems' Dynamic Services for Collaboration Germany's bigge
Slide 47: Partners: Global alliances
Partners Global alliances Partnerships with global technology leaders Certificates and exclusive partnerships Close partnership and collaboration DEUTSCHE TELEKOM: PROFILE STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & SERVICE & BRAND INNOVATION T-Systems International GmbH May 2016 47 B2B
Slide 48: Innovation areas
Innovation areas Energy Health Connected car Services for the highly complex energy grid of the Solutions for connecting doctors, patients, hospitals, Integration of cars and trucks in the Internet and in future health insurance providers, and care facilities. enterprise processes Smart metering a
Slide 49: Customer example: Shell
Customer example: Shell GLOBAL DELIVERABILITY IT and telecommunications from a single Dynamic services for collaboration source The solution An international energy and petrochemicals group with some 92,000 employees in more than 70 countries The solution 3 farms: Standard MS SharePoint 2010, TSI
Slide 50: Customer example: MAN
Customer example: MAN TELEMATICS SYSTEM FOR VEHICLE FLEET MANAGEMENT MAN is a leading commercial vehicle manufacturer, The solution The challenge with 36,000 employees and production of more than Development of a combined telematics and vehicle Simplifying scheduling 100,000 vehicles fleet manag
Slide 51: Customer example: Swiss Federal Railways (SBB)
Customer example: Swiss Federal Railways (SBB) ICT OUTSOURCING Swiss Federal Railways (SBB) has 28,000 staff and The solution The challenge transports 322 million passengers and 54 million tons Integration into standardized data-center Operation of the entire central IT infrastructure of goods e
Slide 52: Innovation think tanks
INNOVATION ”THINK TANKs“ T-Systems Digital Business Unit T-Labs Innovation Center T-Venture Hubraum Incubator Group-wide development Development and backing Integration of Investment in/venture Backing/active realization of and management of of new ideas in start-ups and customers/partners
Slide 53: Innovation success stories
INNOVATION SUCCESS STORIES Example: Entertain Example: mytaxi.net In-house development Advancement of business idea by Intelligent Apps GmbH IPTV market launch in 2006 Launched in 2011 Multi-functional, networked & interactive Went international in 2012 Entertain to-go: via tablet, PC
Slide 54: Overview
DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW 01 Deutsche Telekom 02 Strategy & Transformation 03 Network, Products & Innovation 04 Service & Brand 54
Slide 55: Best customer service
BEST CUSTOMER SERVICE EXAMPLE: Germany Awards for customer service Awarded regularly: TÜV technical inspection service’s ”good“ seal for customer service European Business Award: EU accolade awarded for excellence and an innovative and successful business model throughout Europe Customer service
Slide 56: Our brand positioning: Life is for sharing
UNSERE MARKENPOSITIONIERUNG ERLEBEN, WAS VERBINDET OUR BRAND POSITIONING LIFE IS FOR SHARING DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Service & BRAND 56 Brand Positioning
Slide 57: Our brand positioning: Life is for sharing
OUR BRAND POSITIONING LIFE IS FOR SHARING International Brand Active Tv Commercials DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Service & BRAND 57 Brand Positioning
Slide 58: Thank you!
THANK YOU! |