Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q2 2008 Earnings Presentation
99 slides from Deutsche Telekom's earnings presentation, August 2008
Slide 1: Backup Q2 2008. Deutsche Telekom.
Backup Q2 2008. Deutsche Telekom. Check out our IR website www.telekom.com/investor-relations for: This backup in .pdf and excel-format The IR calender Detailed information for debt investors Shareholder structure Corporate governance For further information on the business units please refer to: ww
Slide 2: Notes
Notes. ===!"§ Page 2
Slide 3: Content
Content. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures adjusted for speci
Slide 4: At a Glance I
At a Glance I. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue Broadband/Fixed Network 5,655 5,626 5,577 22,690 5,382 5,291 -6.4% 11,487 10,673 -7.1% Mobile Communications 8,650 8,875 8,811 34,736 8,445 8,678 0.3% 17,050 17,123 0.4% Mobile Europa 5,119 5
Slide 5: At a Glance II
At a Glance II. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. EBITDA margin excluding special factors Broadband/Fixed Network 33.7% 35.0% 36.3% 34.2% 35.4% 36.0% 2.3%p 32.9% 35.7% 2.8%p Mobile Communications 31.8% 33.1% 28.4% 30.9% 31.5% 32.8% 1.0%p 31.0% 32.2% 1.2%
Slide 6: Excellent market position
Excellent market position. Delta q.o.q. Delta y.o.y. millions 1 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 abs. % abs. % Broadband lines (total) 2,3 12.7 13.3 13.9 14.4 14.6 0.2 1.4% 1.9 15.0% of which domestic 11.5 12.0 12.5 13.0 13.1 0.1 0.8% 1.6 13.9% of which: resale4 3.5 3.5 3.5 3.4 3.2 -0.2
Slide 7: Change in accounting policies (IFRIC 12)
Change in accounting policies (IFRIC 12). Deutsche Telekom has adopted a change to the accounting policies for service concessions under IAS 8 effective June 30, 2008. They are now accounted for in accordance with the regulations in the interpretation IFRIC 12 “Service Concession Rights.” Service co
Slide 8: DT Group
DT Group. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures adjusted for spec
Slide 9: DT consolidated income statement. Adjusted for special factors
DT consolidated income statement. Adjusted for special factors. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Net revenue 15,575 15,693 15,795 62,516 14,978 15,125 -2.9% 31,028 30,103 -3.0% Cost of sales -8,406 -8,320 -8,747 -34,085 -8,280 -8,131 3.3% -17,018 -16,41
Slide 10: DT Group. EBITDA reconciliation
DT Group. EBITDA reconciliation. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Net revenue 15,575 15,693 15,795 62,516 14,978 15,125 31,028 30,103 Net profit (loss) 604 256 -750 571 924 394 1,065 1,318 + Profit (loss) attributable to minority interests 134 175 84 509 135 154 250 289
Slide 11: DT consolidated income statement. Unadjusted
DT consolidated income statement. Unadjusted. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Net revenue 15,575 15,693 15,795 62,516 14,978 15,125 -2.9% 31,028 30,103 -3.0% Cost of sales -8,590 -8,607 -9,520 -35,337 -8,322 -8,342 2.9% -17,210 -16,664 3.2% Gross profi
Slide 12: Special factors in the consolidated income statement
DT Group. Special factors in the consolidated income statement. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Net revenue 0 0 0 0 0 0 0 0 Cost of sales -184 -287 -773 -1,252 -42 -211 -192 -253 Gross profit -184 -287 -773 -1,252 -42 -211 -192 -253 Selling expenses -65 -35 -404 -498 -8
Slide 13: Details on special factors I
DT Group. Details on special factors I. millions of € Q2/07 H1/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/08 Effect on operating expenses -298 -437 -559 -2,224 -3,220 -220 -289 -509 of which: expenses due to sale of Callcenter VCS and VTS 2 -130 -1 -231 -362 -45 -13 -58 of which: additional expenses for re
Slide 14: Details on special factors II
DT Group. Details on special factors II. millions of € Q2/07 H1/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/08 Effect on profit (loss) from financial activities 1 -16 12 -5 -9 -43 -21 -64 of which: exp. from interest added back to provisions for staff-related measures -17 -34 -19 -5 -58 -51 -19 -70 of which
Slide 15: Change in the composition of the Group in the second quarter
DT Group. Change in the composition of the Group in the second quarter. reported MINUS PLUS Total % Pro numbers effect Forma Acquisition effects 1 Deconsolidation effects 5 Pro Q2/08 Q2/07 Q2/08 Mobile Mobile Bus. forma reported millions of € Total Europe2 USA3 BB/FN4 Total BB/FN6 Cust.7 GHS8 Q2/08
Slide 16: Change in the composition of the Group in the current year
DT Group. Change in the composition of the Group in the current year. reported MINUS PLUS Total % Pro numbers effect Forma Acquisition effects 1 Deconsolidation effects 5 Pro H1/08 H1/07 H1/08 Mobile Mobile Bus. forma reported millions of € Total Europe2 USA3 BB/FN4 Total BB/FN6 Cust.7 GHS8 H1/08 H1
Slide 17: Consolidated balance sheet. Assets
Consolidated balance sheet. Assets1. billions of € 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 % y.o.y. Current assets 15.2 16.1 15.9 16.1 15.6 2.1% Cash and cash equivalents 2.1 3.5 2.2 2.3 2.0 -8.9% Trade and other receivables 7.6 7.7 7.7 7.1 7.3 -4.2% Current recoverable income taxes 0.4 0.2 0.2
Slide 18: Consolidated balance sheet. Equity and liabilities
Consolidated balance sheet. Shareholders' equity and liabilities 1. billions of € 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 % y.o.y. Liabilities 77.3 74.6 75.4 73.8 78.0 0.9% Current liabilities 22.0 21.1 23.2 22.4 25.0 13.6% Financial liabilities 9.5 8.2 9.1 9.2 11.5 20.4% Trade and other payabl
Slide 19: Maturity profile
Maturity profile. Bonds, Medium Term Notes (MTN) and Schuldscheindarlehen maturities as of June 30, 2008 (€ billion) EUR bn 14 For detailed information on Bonds, Medium Term Notes and the 12 Mandatory Convertible Bond such as: •Principal amount •Currency 10 •Maturity date •Coupon 8 6.2 •ISIN Code •D
Slide 20: Liquidity reserves as of June 30, 2008
Liquidity reserves as of June 30, 2008. € billion 80 Liquidity reserves (€ billion) 16.6 70 60 Unused bilateral credit lines 13.2 16.6 50 Assets 40 3.6 30 57.2 20 40.6 Total line availability 10 Liquidity reserves DT Group net debt 0 ===!"§ Page 20
Slide 21: Debt to net debt reconciliation
Debt to net debt reconciliation. millions of € 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 % q.o.q. % y.o.y. Bonds 35,013 33,079 32,294 31,712 32,249 1.7% -7.9% Other financial liabilities 8,507 7,891 8,568 8,541 12,000 40.5% 41.1% Gross debt 43,520 40,970 40,862 40,253 44,249 9.9% 1.7% Cash and ca
Slide 22: Cash capex
Cash capex1. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Broadband/Fixed Network 534 629 920 2,805 623 578 8.2% 1,256 1,201 -4.4% Mobile Communications 822 767 1,392 3,896 951 979 19.1% 1,737 1,930 11.1% Mobile Europa 387 405 698 1,938 471 318 -17.8% 835 789 -5.5%
Slide 23: Free cash flow
Free cash flow. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Net profit (loss) 604 256 -750 571 924 394 -34.8% 1,065 1,318 23.8% Profit (loss) attributable to minority interests 134 175 84 509 135 154 14.9% 250 289 15.6% Profit (loss) after income taxes 738 431 -66
Slide 24: Personnel
Personnel1. End of period 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 Delta q.o.q. Delta y.o.y. abs. % abs. % BBFN3 98,459 95,698 93,486 96,687 94,031 -2,656 -2.7% -4,428 -4.5% Domestic 80,293 78,598 76,990 80,941 78,656 -2,285 -2.8% -1,637 -2.0% International 18,166 17,100 16,496 15,746 15,375 -37
Slide 25: Exchange rates
Exchange rates. Average. € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 1 U.S dollar (USD) 0.74185 0.72801 0.69071 0.72974 0.66738 0.63995 1 British pound (GBP) 1.47333 1.47034 1.41335 1.46142 1.32058 1.26065 100 Czechs korunas (CZK) 3.53691 3.57903 3.72764 3.60154 3.91072 4.02570 100 Croatian kunas (HRK) 13
Slide 26: Sustainability Achievements. Supply chain management
Sustainability Achievements. DT`s approach towards supply chain management. DT became in 2007 a leading Company [in supply chain] (recognized by SAM Sustainable Asset Management AG, Zurich) 2007/2008 Achievements Transformation and implementation of strategy into DT`s Global Procurement Policies and
Slide 27: Sustainability Achievements. Response from the financial community
Sustainability Achievements. Selected response from the financial community. Organization/Rater Rating Deutsche Telekom Criteria Carbon Disclosure Project 2007 AAA CO2 emissions disclosure and strategic positioning on (An initiative of more than 300 institutional Best of industry worldwide climate c
Slide 28: Sustainability Achievements. Decoupling energy consumption from CO2 emissions
Sustainability Achievements. Decoupling energy consumption from CO2 emissions. Deutsche Telekom Germany (1995 = 100 %) Energy CO2eq 120% Inclusion of energy amounts carried forward from previous years for technical reasons 100% Purchase of renewable energy certificates 80% Increased purchase of 60%
Slide 29: Notes
Notes. ===!"§ Page 29
Slide 30: Mobile Communications
Mobile Communications. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures adju
Slide 31: T-Mobile. Adjusted for special influences
T-Mobile Adjusted for special influences € million Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 8,650 8,875 8,811 34,736 8,445 8,678 0.3% 17,050 17,123 0.4% Net revenue 8,472 8,694 8,638 34,050 8,292 8,511 0.5% 16,718 16,803 0.5% ARPU revenue 7,722 7,949 7,732 30,8
Slide 32: T-Mobile EBITDA Reconciliation
T-Mobile EBITDA Reconciliation € million Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 8,650 8,875 8,811 34,736 8,445 8,678 0.3% 17,050 17,123 0.4% Profit (loss) from operations = EBIT 1,297 1,356 734 4,453 1,260 1,446 11.5% 2,363 2,706 14.5% - Depreciation and amor
Slide 33: T-Mobile Unadjusted
T-Mobile Unadjusted € million Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 8,650 8,875 8,811 34,736 8,445 8,678 0.3% 17,050 17,123 0.4% Net revenue 8,472 8,694 8,638 34,050 8,292 8,511 0.5% 16,718 16,803 0.5% ARPU revenue 7,722 7,949 7,732 30,888 7,569 7,805 1.1% 1
Slide 34: T-Mobile Special influences
T-Mobile Special influences € million Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Effects on EBITDA -9 -3 -117 -147 -3 -27 -27 -30 - of which restructuring1 -9 -3 -133 -147 -3 -27 -11 -30 - of which other 0 0 16 0 0 0 -16 0 Effects on Operating Results = EBIT -9 -184 -263 -474 -3 -27 -27 -30 - o
Slide 35: T-Mobile Customer Summary - proforma
T-Mobile Customer Summary - proforma - '000 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 % y.o.y. Germany1 34,329 34,471 35,952 37,111 38,399 11.9% United Kingdom 2 16,786 17,005 17,311 17,124 16,794 0.0% Poland 12,525 12,722 12,998 12,986 12,830 2.4% Austria 3,148 3,227 3,273 3,287 3,298 4.8% Czech Republic 5,140
Slide 36: T-Mobile Customer Summary
T-Mobile Customer Summary '000 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 % y.o.y. Germany1 34,329 34,471 35,952 37,111 38,399 11.9% United Kingdom 2 16,786 17,005 17,311 17,124 16,794 0.0% Poland 12,525 12,722 12,998 12,986 12,830 2.4% Austria 3,148 3,227 3,273 3,287 3,298 4.8% Czech Republic 5,140 5,207 5,271
Slide 37: T-Mobile Germany (TMD)
T-Mobile T-Mobile Germany (TMD) '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1 34,329 34,471 35,952 35,952 37,111 38,399 11.9% 34,329 38,399 11.9% - Contract 15,520 15,669 16,054 16,054 16,264 16,468 6.1% 15,520 16,468 6.1% - Prepay 18,808 18,802 1
Slide 38: T-Mobile: New attractive voice rates. Germany
T-Mobile: New attractive voice rates. Germany. New T-Mobile voice rates (post-paid) Good Better Best Max Max S Max M Max L Excludes mobile EUR 14.95 / month EUR 29.95 / month EUR 79.95 / month phone* 0 cents / min. 0 cents / min. 0 cents / min. to German fixed network to German fixed network and T-
Slide 39: T-Mobile: New Relax Plans. Germany
T-Mobile: New Relax Plans. Germany. in € Relax 50 Relax 200 Relax 1000 1 . Monthly charge Relax (with handset) 19.95 39.95 69.95 Relax (without handset) 9.95 29.95 59.95 2. Voice and Message includes national voice minutes 50 200 1000 (on-net, fixed net, other mobile networks) Voicemail included Bud
Slide 40: T-Mobile: New Max and MyFaves Plans. Germany
T-Mobile: New Max and MyFaves Plans. Germany. in € Max S Max M Max L Max plans Max 14.95 29.95 79.95 Max (with handset) 24.95 39.95 89.95 Rates per minute national: -mobile to national fixed net 0.00 0.00 0.00 -on-net / Voicebox 0.29 0.00 0.00 -other mobile networks 0.29 0.29 0.00 SMS (on-net, other
Slide 41: iPhone 3G exclusively from T-Mobile and Apple. Germany
iPhone 3G- exclusively from T-Mobile and Apple. Germany. Complete S offer until 30.09.2008 in € Complete S Complete M Complete L Complete XL Monthly charge 29.00 49.00 69.00 89.00 HSDPA use 500 MB1 W-LAN data flat rate ---------- inclusive Visual voicemail (on-net) Weekend flat (on-net, fixed net) i
Slide 42: T-Mobile: Aggressive data flat rates with web'n'walk
T-Mobile: Aggressive data flat rates with web'n'walk. Germany. Good Better Best New New Starter Time 300 HandyFlat June Cell phone 9ct/min. 4.95€ 9.95€ 2008 Worry-free roaming No network differentiation New New New 75% price reduction DayFlat 300MB L flat rate Laptop 4.95 €/day €19.95 34.95€ ===!"§
Slide 43: Data Options/Plans. Germany
Data Options/Plans. Germany. MyFaves, Relax MyFaves, Relax MyFaves, Relax (excl. Relax XL), Basix, (excl. Relax XL), Basix, (excl. Relax XL), Basix, Mobile Plans: Max, CombiCard Relax Max, CombiCard Relax Max, CombiCard Relax Data options web'n'walk Starter 1 web'n'walk Time 300 web'n'walk Handy Fla
Slide 44: Data Options/Plans Germany
Data Options/Plans Germany. Web'n'walk Surfoption 1: web'n'walk Day Flat 2, 3 web'n'walk M2 web'n'walk L2 (Speed up to 7.2 Mbit/s downlink) (Speed up to 1.4 Mbit/s uplink) Monthly charge data option (4.95 per day) 19.95 34.95 Additional data volume (per MB) --------- 0.49 --------- Data volume (per
Slide 45: T-Mobile USA
T-Mobile T-Mobile USA '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1 26,877 27,734 28,685 28,685 30,798 31,466 17.1% 26,877 31,466 17.1% - Contract 22,624 23,181 23,914 23,914 25,721 26,246 16.0% 22,624 26,246 16.0% - Prepay 4,253 4,553 4,771 4,771
Slide 46: T-Mobile USA (USD)
T-Mobile T-Mobile USA USD Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue (million) 4,778 4,893 5,066 19,282 5,185 5,467 14.4% 9,323 10,653 14.3% ARPU revenue (million) 4,088 4,225 4,257 16,460 4,455 4,735 15.8% 7,978 9,191 15.2% Adj. EBITDA (million)1 1,386 1,413 1,3
Slide 47: Individual myFaves Plans
Individual myFaves Plans. sm Weekend/Night 1 Monthly charge Whenever Minutes Minutes myFaves Minutes2 myFaves 300 $ 39.99 300 Unlimited Unlimited myFaves 600 $ 49.99 600 Unlimited Unlimited myFaves 1000 $ 59.99 1000 Unlimited Unlimited myFaves 1500 $ 69.99 1500 Unlimited Unlimited myFaves 2500 $ 109
Slide 48: Individual Voice Plans
Individual Voice Plans. Get great value with the most minutes. Weekend/Night 1 2 Monthly charge Whenever Minutes Minutes Unlimited Individual Basic $ 29.99 300 weekends Individual Value $ 39.99 600 Unlimited Individual Prime $ 39.99 1000 None Individual Plus $ 49.99 1000 Unlimited Individual Max $ 5
Slide 49: T-Mobile UK
T-Mobile T-Mobile UK '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1 16,786 17,005 17,311 17,311 17,124 16,794 0.0% 16,786 16,794 0.0% - Contract 3,893 3,937 3,880 3,880 3,861 3,917 0.6% 3,893 3,917 0.6% - Prepay1 12,892 13,068 13,431 13,431 13,263
Slide 50: T-Mobile UK (GBP)
T-Mobile T-Mobile UK '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1 16,786 17,005 17,311 17,311 17,124 16,794 0.0% 16,786 16,794 0.0% - Contract 3,893 3,937 3,880 3,880 3,861 3,917 0.6% 3,893 3,917 0.6% - Prepay1 12,892 13,068 13,431 13,431 13,263
Slide 51: Flext
Flext. £ 5 off line rental Flext + web'n'walk³ Monthly 1 Monthly charge monthly charge Allowance Pure Minutes Pure Texts Flext 30 £ 30 now £ 25 £ 37.5 now £ 32.5 £ 140 700 minutes 1400 texts Flext 35 £ 35 now £ 30 £ 42.5 now £ 37.5 £ 200 1,000 minutes 2,000 texts Flext 40 £ 40 now £ 35 £ 47.5 now £
Slide 52: MyFaves Plans. UK
MyFaves Plans. UK. Monthly Allowance Monthly charge MyFaves Pure Minutes Pure Texts MyFaves 25 £ 25 unlimited 25 minutes 50 texts MyFaves 35 £ 35 unlimited 100 minutes 200 texts MyFaves 45 £ 45 unlimited 200 minutes 400 texts Calling costs once your inclusive minutes have been used up Any UK network
Slide 53: PTC (Poland)
T-Mobile PTC (Poland) '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 12,525 12,722 12,998 12,998 12,986 12,830 2.4% 12,525 12,830 2.4% - Contract 4,914 5,122 5,409 5,409 5,599 5,807 18.2% 4,914 5,807 18.2% - Prepay 7,611 7,600 7,590 7,590 7,388 7,023
Slide 54: PTC (Poland) in PLN
T-Mobile PTC (Poland) '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 12,525 12,722 12,998 12,998 12,986 12,830 2.4% 12,525 12,830 2.4% - Contract 4,914 5,122 5,409 5,409 5,599 5,807 18.2% 4,914 5,807 18.2% - Prepay 7,611 7,600 7,590 7,590 7,388 7,023
Slide 55: T-Mobile Austria
T-Mobile T-Mobile Austria '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 3,148 3,227 3,273 3,273 3,287 3,298 4.8% 3,148 3,298 4.8% - Contract 1,965 2,061 2,133 2,133 2,173 2,191 11.5% 1,965 2,191 11.5% - Prepay 1,183 1,166 1,141 1,141 1,114 1,107 -6.
Slide 56: T-Mobile Czech Republic
T-Mobile T-Mobile Czech Republic '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 5,140 5,207 5,271 5,271 5,273 5,313 3.4% 5,140 5,313 3.4% - Contract 2,014 2,132 2,228 2,228 2,293 2,372 17.8% 2,014 2,372 17.8% - Prepay 3,125 3,075 3,044 3,044 2,980 2,
Slide 57: T-Mobile Netherlands
T-Mobile T-Mobile Netherlands '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1 2,638 2,639 4,889 4,889 5,166 5,278 n.m. 2,638 5,278 n.m. - Contract 1,343 1,351 2,090 2,090 2,123 2,153 60.3% 1,343 2,153 60.3% - Prepay1 1,295 1,288 2,799 2,799 3,043 3,
Slide 58: T-Mobile Hungary
T-Mobile T-Mobile Hungary '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 4,517 4,628 4,853 4,853 4,928 5,082 12.5% 4,517 5,082 12.5% - Contract 1,654 1,710 1,794 1,794 1,843 1,898 14.8% 1,654 1,898 14.8% - Prepay 2,863 2,918 3,060 3,060 3,086 3,184 1
Slide 59: T-Mobile HR (Croatia)
T-Mobile T-Mobile HR (Croatia) '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 2,222 2,278 2,385 2,385 2,453 2,543 14.4% 2,222 2,543 14.4% - Contract 614 641 685 685 720 750 22.1% 614 750 22.1% - Prepay 1,608 1,637 1,700 1,700 1,733 1,793 11.5% 1,608
Slide 60: T-Mobile Slovensko (Slovakia)
T-Mobile T-Mobile Slovensko (Slovakia) '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 2,226 2,307 2,367 2,367 2,335 2,330 4.7% 2,226 2,330 4.7% - Contract 1,027 1,088 1,171 1,171 1,211 1,251 21.8% 1,027 1,251 21.8% - Prepay 1,199 1,218 1,197 1,197 1,
Slide 61: T-Mobile Macedonia
T-Mobile T-Mobile Macedonia '000 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Customers (end of period) 1,002 1,066 1,213 1,213 1,224 1,251 24.9% 1,002 1,251 24.9% - Contract 233 249 281 281 301 322 38.2% 233 322 38.2% - Prepay 769 817 932 932 924 929 20.8% 769 929 20.8% Net add
Slide 62: Notes
Notes. ===!"§ Page 62
Slide 63: Notes
Notes. ===!"§ Page 63
Slide 64: Broadband/Fixed Network
Broadband/Fixed Network. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures ad
Slide 65: Broadband/Fixed Network. Adjusted for special factors
Broadband/ Fixed Network. Adjusted for special fact millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y H1/07 H1/08 % y.o.y Total revenue 5,832 5,655 5,626 5,577 22,690 5,382 5,291 -6.4% 11,487 10,673 -7.1% Domestic 5,146 4,948 5,002 4,982 20,078 4,830 4,729 -4.4% 10,094 9,559 -5.3% Inte
Slide 66: Broadband/Fixed Network. EBITDA reconciliation
Broadband/ Fixed Network. EBITDA reconciliation. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Total revenue 5,832 5,655 5,626 5,577 22,690 5,382 5,291 11,487 10,673 Profit (loss) from operations = EBIT 976 929 947 398 3,250 909 837 1,905 1,746 Depreciation, amortization and -
Slide 67: Broadband/Fixed Network. Unadjusted
Broadband/ Fixed Network. Unadjusted. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y H1/07 H1/08 % y.o.y Total revenue 5,832 5,655 5,626 5,577 22,690 5,382 5,291 -6.4% 11,487 10,673 -7.1% Domestic 5,146 4,948 5,002 4,982 20,078 4,830 4,729 -4.4% 10,094 9,559 -5.3% International 698
Slide 68: Broadband/Fixed Network. Special factors
Broadband/ Fixed Network. Special factors. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Effects on EBITDA 14 -50 -107 -702 -845 -96 -183 -36 -279 Domestic 21 -245 -221 -697 -1,142 -101 -171 -224 -272 of which personnel related 22 -208 -214 -626 -1,026 -8 -161 -186 -169 Interna
Slide 69: Key operational performance - Broadband
1 Broadband/ Fixed Network. Key operational performance - Broadband (excl. T-Online France/Spain). Thousands 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 y.o.y.% q.o.q.% 1/2/3/4 Broadband Lines in operation (total) 12,169 12,681 13,264 13,927 14,446 14,617 15.3% 1.2% of which Retail1 8,568
Slide 70: Key operational performance - Fixed-network lines
Broadband/ Fixed Network. Key operational performance - Fixed-network lines (excl. T-Online France/ Spain). Thousands 31/03/07 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 y.o.y.% q.o.q.% Fixed-network lines (total) 1 38,301 37,726 37,166 36,554 35,877 35,222 -6.6% -1.8% Domestic 32,605 32,089 31,59
Slide 71: BBFN International. Key financial figures
Broadband/ Fixed Network International. Key financial figures. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 y.o.y.% 1/3 International (total) Total revenue 698 722 632 602 2,654 564 575 -20.4% Total adj. EBITDA 214 249 284 232 979 239 248 -0.4% Total adj. EBITDA margin 30.7% 34.5% 44.9% 3
Slide 72: BBFN International. Key financial figures in local currency
BBFN: International (Eastern Europe only). Key financial figures in local currency. millions Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 y.o.y.% H1/07 H1/08 y.o.y.% 1/ Magyar Telekom (MT) (HUF) Revenue 75,053 77,087 78,344 76,886 307,370 72,739 71,316 -7.5% 152,140 144,055 -5.3% Adj. EBITDA 31,507 32,
Slide 73: BBFN: Domestic. Revenue split
BBFN: Domestic1. Revenue split. millions of € Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 y.o.y.% H1/07 H1/08 y.o.y.% 2 Domestic (total) 5,146 4,948 5,002 4,982 20,078 4,830 4,729 -4.4% 10,094 9,559 -5.3% of which network communications 2,631 2,556 2,561 2,390 10,138 2,318 2,292 -10.3% 5,187 4,610 -11
Slide 74: BBFN: Domestic. Call minutes and call revenues
BBFN: Domestic. Call minutes and call revenues.1 Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 y.o.y.% H1/07 H1/08 y.o.y.% 2 Minutes (billions) Total 26.51 24.61 24.67 26.40 102.19 26.81 25.12 2.1% 51.12 51.93 1.6% City/local 15.17 13.68 13.54 14.69 57.07 14.89 13.59 -0.7% 28.85 28.48 -1.3% Long distanc
Slide 75: Broadband/Fixed Network. Personnel development
Broadband/ Fixed Network. Personnel development . Year end/quarter end Q1/07 Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 y.o.y.% 1 Number of employees (total) 100,434 98,459 95,698 93,486 93,486 96,687 94,031 -4.5% Domestic 3 81,386 80,293 78.598 76.990 76.990 80,941 78,656 -2.0% International (CEE)1/2 19,0
Slide 76: T-Home domestic. Complete Packages
T-Home domestic. Complete Packages1,2,3 Call Start 4 Call Basic Call Basic Call Comfort 4 Standard voice usage Standard Universal Standard per minute up to 120 minutes up to 240 minutes flat rate within within Germany within Germany Germany from € 16.95 € 19.95 € 27.95 from € 29.95 Cent/Minute Off p
Slide 77: T-Home domestic. Complete Packages
T-Home domestic. Complete Packages1,2,3 Call & Surf Start 5 Call & Surf Basic 5 (4.1) Call & Surf Basic 5 (4.2) Call & Surf Comfort 5 Call & Surf Comfort Plus 5 bandwidth DSL bandwidth DSL bandwidth DSL bandwidth DSL Bandwidth DSL 2 Mbit/s, voice 2 Mbit/s, flat rate 2 Mbit/s, flat rate voice 6 Mbit/
Slide 78: T-Home domestic. Complete Packages
T-Home domestic. Complete Packages1,2,3 Entertain Comfort 5 Entertain Comfort Plus 5 Entertain Premium 5 bandwidth DSL bandwidth DSL bandwidth DSL 16 Mbit/s plus, flat rate internet 16 Mbit/s plus, flat rate internet 16 Mbit/s plus, flat rate Internet usage and flat rate voice usage, usage and flat
Slide 79: Overview domestic interconnection tariffs
Broadband/ Fixed Network. Overview dom. interconnection tariffs (excl. VAT). Peak Peak Off-Peak Off-Peak Cent/min. (9:00-18:00), old (9:00-18:00), new1 (18:00-9:00), old (18:00-9:00), new1 Termination/Origination fees Local 0.59 0.52 0.40 0.36 Single transit 0.96 0.88 0.64 0.59 Double transit nation
Slide 80: T-Home domestic. IPTV packages
T-Home domestic. T-Home T-Home T-Home T-Home T-Home T-Home IPTV packages. Entertain Comfort Entertain Comfort VDSL Entertain Comfort Plus Entertain Comfort Plus Premium Premium VDSL Entertainment Included Access to Video on demand ● ● ● ● ● ● Basic TV channels ● ● ● ● ● ● TV archive of selected TV c
Slide 81: Notes
Notes. ===!"§ Page 81
Slide 82: Notes
Notes. ===!"§ Page 82
Slide 83: Business Customers
Business Customers. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures adjuste
Slide 84: Business Customers. Adjusted for special factors
Business Customers. Adjusted for special factors. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 2,962 2,917 3,202 11,987 2,603 2,667 -10.0% 5,868 5,270 -10.2% of which: international 624 609 697 2,506 593 645 3.4% 1,200 1,238 3.2% Net revenue 2,239 2,1
Slide 85: Business Customers. EBITDA reconciliation
Business Customers. EBITDA reconciliation. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 2,962 2,917 3,202 11,987 2,603 2,667 -10.0% 5,868 5,270 -10.2% Profit (loss) from operations = EBIT (unadj.) 34 26 -427 -323 479 -65 -291.2% 78 414 430.8% Deprecia
Slide 86: Business Customers. Unadjusted
Business Customers. Unadjusted. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 2,962 2,917 3,202 11,987 2,603 2,667 -10.0% 5,868 5,270 -10.2% Net revenue 2,239 2,184 2,365 8,971 2,025 2,057 -8.1% 4,422 4,082 -7.7% EBITDA 256 243 -176 584 673 136 -46.9%
Slide 87: Business Customers. Special factors
Business Customers. Special factors. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Effect on EBITDA -24 -48 -406 -478 467 -58 -141.7% -24 409 n.a. of which restructuring provisions (EBITDA) -24 -48 -406 -448 467 -58 -141.7% -24 409 n.a. of which restructuring provis
Slide 88: Business Customers Computing & Desktop Services
Business Customers Computing & Desktop Services. Computing & Desktop Services. Financial (millions of €) Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 1,036 998 1,128 4,166 869 866 -16.4% 2,041 1,735 -15.0% Adj. EBITDA 219 200 149 741 163 125 -42.9% 393 288 -26.7% A
Slide 89: Business Customers Systems Integration
Business Customers Systems Integration. Systems Integration. Financial (millions of €) Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 415 408 473 1,711 414 440 6.0% 830 854 2.9% Adj. EBITDA 11 23 15 63 12 18 63.6% 24 30 25.0% Adj. EBITDA margin 2.7% 5.6% 3.2% 3.7% 2.
Slide 90: Business Customers Telecommunications
Business Customers Telecommunications. Telecommunications. Financial (millions of €) Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 1,511 1,511 1,601 6,110 1,320 1,361 -9.9% 2,997 2,681 -10.5% Adj. EBITDA 50 68 66 258 31 51 2.0% 124 82 -33.9% Adj. EBITDA margin 3.3%
Slide 91: Notes
Notes. ===!"§ Page 91
Slide 92: Notes
Notes. ===!"§ Page 92
Slide 93: GHS
GHS. At a glance 4 Netherlands 57 Excellent market position 6 Hungary 58 Croatia 59 Group Slovakia 60 Adjusted income statement 9 Macedonia 61 EBITDA reconciliation 10 Unadjusted income statement 11 Broadband/Fixed Network Special factors in the income statement 12 Key figures adjusted for special f
Slide 94: Group Headquarters & Shared Services. Adjusted for special factors
Group Headquarters & Shared Services. Adjusted for special factors. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 988 966 962 3,868 884 915 -7.4% 1,940 1,799 -7.3% Net revenue 102 103 129 423 150 154 51.0% 191 304 59.2% EBITDA -21 -37 -117 -108 -25 -40
Slide 95: Group Headquarters & Shared Services. EBITDA reconciliation
Group Headquarters & Shared Services. EBITDA reconciliation. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 H1/07 H1/08 Total revenue 988 966 962 3,868 884 915 1,940 1,799 Profit (loss) from operations = EBIT -215 -401 -1,107 -1,973 -277 -305 -465 -582 Depreciation, amortization and - impairment
Slide 96: Group Headquarters & Shared Services. Unadjusted
Group Headquarters & Shared Services. Unadjusted. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y. Total revenue 988 966 962 3,868 884 915 -7.4% 1,940 1,799 -7.3% Net revenue 102 103 129 423 150 154 51.0% 191 304 59.2% EBITDA -26 -90 -822 -1,006 -100 -55 n.a. -94 -155
Slide 97: Group Headquarters & Shared Services. Special factors
Group Headquarters & Shared Services. Special factors. millions of € Q2/07 Q3/07 Q4/07 FY/07 Q1/08 Q2/08 Effect on EBITDA -5 -53 -705 -898 -75 -15 of which: transfer payments to Vivento 1 1 41 43 0 0 Provisions for staff reduction, severance payments and others -6 -59 -746 -946 -75 -25 Effects on pr
Slide 98: Vivento. Results of efficient processes
Vivento. Results of efficient processes. End of period 1 30/06/07 30/09/07 31/12/07 31/03/08 30/06/08 Transfers to Vivento (cumulative) 38,000 38,200 38,600 39,300 39,800 Left Vivento (cumulative) 26,900 27,500 28,300 30,900 31,600 of which left the DT Group (cumulative) 16,400 16,800 17,400 19,800
Slide 99: Glossary and Disclaimer
Glossary and Disclaimer. In addition to financial information presented in accordance with IFRS, this presentation contains non-GAAP financial measures, such as ... which is defined as ... EBIT Abbreviation for EARNINGS BEFORE INTEREST AND TAXES. EBIT is equivalent to the P&L-line "Operating Results