Deutsche Telekom AG · XETR:DTE

Deutsche Telekom — Investor Day (February 2015)

24 slides from Deutsche Telekom's investor day presentation, Feb 26, 2015

  1. Slide 1: Deutsche Telekom Capital Markets Day 2015

    DEUTSCHE TELEKOM CAPITAL MARKETS DAY 2015 Bonn, February 26/27, 2015

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT This presentation contains “forward-looking” statements within the meaning of the U.S. federal securities laws. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any

  3. Slide 3: T-Mobile US

    T-MOBILE US Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 3

  4. Slide 4: Capital Markets Day 2012

    CAPITAL MARKETS DAY 2012 Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 4

  5. Slide 5: Key Messages: Un-carrier

    KEY MESSAGES Un -carrier  The Un-carrier revolution continues! 2014 was the best customer growth year in T-Mobile US history. 4.0 million branded postpaid phone nets – captured virtually all of industry growth; 55M total customers year-end  We are the leader in prepaid with over 16.3 million custo

  6. Slide 6: Path to Growth as Un-carrier

    PATH TO GROWTH AS UN-CARRIER 55 Million Total Customers ! UNCARRIER 8.0 – DATA STASH Dec Dec 2014 UNCARRIER 7.0 – WiFi CALLING Sep UNCARRIER 5.0 & 6.0 – TEST DRIVE & MUSIC FREEDOM Jun THREE DAYS OF UN-CARRIER Apr FASTEST NATIONWIDE LTE NETWORK Jan UNCARRIER 4.0 – CONTRACT FREEDOM Jan LOW-BAND SPECTR

  7. Slide 7: Record customer growth fuels industry leading service revenue growth

    RECORD CUSTOMER GROWTH FUELS INDUSTRY LEADING SERVICE REVENUE GROWTH…  Over 12.7 million total net adds since the Un-carrier revolution began – 8.3 million total net adds in 2014  Nearly 6.0 million branded postpaid phone net adds since the launch of the Un-Carrier revolution  Over 4.0 million br

  8. Slide 8: Leading to Adjusted EBITDA growth and strong ABPU trends

    …LEADING TO ADJUSTED EBITDA GROWTH AND STRONG ABPU TRENDS Adjusted EBITDA Branded Postpaid Average Billings Per User (ABPU) mn USD USD $61.80 Up 30% from Q3 and $61.59 $1,751 41% from Q4 2013 $1,469 $1,451 $59.54 $1,344 $1,346 $59.08 $58.72 $59.79 $1,265 $1,239 Highest in $1,088 $58.78 company’s his

  9. Slide 9: Strategy 2015–2016

    Strategy 2015–2016 Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 9

  10. Slide 10: Un-carrier, Experience, Network, Lean Business Model

    1. Un-carrier 2.EXPERIENCE 3. 4. LEAN SALES & SERVICE NETWORK FOUNDATION BUSINESS MODEL Superior Sales and Solid Network Foundation Lean Cost Structure and full Customer Experience and Spectrum Position capture of MetroPCS Integration Synergies Group STRATEGY Cost and Portfolio Transformation Lead i

  11. Slide 11: Un-carrier: Driving Innovation in the Wireless Industry

    UN-CARRIER DRIVING INNOVATION IN THE WIRELESS INDUSTRY Re-write the rules on behalf of the consumer Provide revolutionary value Be simple & transparent Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 11

  12. Slide 12: Un-carrier: It's all about changing wireless for the better

    UN-CARRIER: IT’S ALL ABOUT CHANGING WIRELESS FOR THE BETTER Data Un-carrier 8.0 WiFi Stash Un-carrier 7.0 Music Calling Un-carrier 6.0 Test Freedom Free 10GB Un-carrier 5.0 Contract Drive Now Every Gift of Data Un-carrier 4.0 Make Freedom The No WiFi Easy Un-carrier 3.0 The Network Limits Connection

  13. Slide 13: Sales & Service Experience

    1. Un-carrier 2.EXPERIENCE 3. 4. LEAN SALES & SERVICE NETWORK FOUNDATION BUSINESS MODEL  Delight customers with award-winning, innovative service  Transform the customer experience to support the Un-Carrier movement Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Product

  14. Slide 14: Network Foundation

    1. Un-carrier 2.EXPERIENCE 3. 4. LEAN SALES & SERVICE NETWORK FOUNDATION BUSINESS MODEL  Level the competitive playing field from a coverage perspective  Provide fast speed despite explosive data usage growth, by leveraging robust position in mid-band  Achieve results while keeping costs under co

  15. Slide 15: Level the competitive playing field from a coverage perspective

    LEVEL THE COMPETITIVE PLAYING FIELD FROM A COVERAGE PERSPECTIVE End of 2014 LTE Coverage End of 2015 LTE Coverage ~265M LTE ~300M LTE covered pops, covered pops, 0.6 M sq.miles 1.6 M sq. miles Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany

  16. Slide 16: Provide industry-leading fast service amid explosive data growth

    PROVIDE INDUSTRY-LEADING FAST SERVICE EVEN IN AN ENVIRONMENT OF EXPLOSIVE DATA GROWTH Data Fast Network supports High Speed experience Data Strong network supports Data growth Results based on Data growth (Indexed to IH 2012) #1 MILLIONS OF TESTS BY >7.5x REAL CUSTOMERS* 19.2 17.9 15.0 9.9 >2.5x TMU

  17. Slide 17: Spectrum position provides runway for continued growth

    SPECTRUM POSITION PROVIDES RUNWAY FOR CONTINUED GROWTH Spectrum Holdings in Top 25 Markets by Carrier, Rapidly converting technology to achieve even higher including AWS-3 auction results spectral efficiency Total Spectrum Holdings /Total WCS + BRS spectrum Relative efficiency by technology Subs (in

  18. Slide 18: Continuing to be a leader in network innovation

    CONTINUING TO BE A LEADER IN NETWORK INNOVATION VoLTE  First to launch VoLTE  First to unleash WiFi calling worldwide with Un-Carrier 7.0 iOS8  First and only carrier to support WiFi calling with VoLTE handoff on iOS8  First to HD Voice and first to launch nationwide  First to launch free in-fl

  19. Slide 19: Lean Business Model

    1. Un-carrier 2.EXPERIENCE 3. 4. LEAN SALES & SERVICE NETWORK FOUNDATION BUSINESS MODEL  MetroPCS integration tracking well ahead of original integration plan. Run-rate cost synergies from merger being realized ahead of schedule  Continuing organic cost transformation and re-investing in growth Gr

  20. Slide 20: Tracking well ahead of original MetroPCS integration plan

    TRACKING WELL AHEAD OF ORIGINAL METROPCS INTEGRATION PLAN MetroPCS Integration Ahead of Plan Synergies Realized Ahead of Plan Share of MetroPCS customers on T-Mobile Network Percent 87% 78%  Expect after tax NPV of synergies $9–$10 billion – 67% 53% $3 billion higher than original plan of $6 - $7 b

  21. Slide 21: Continuing organic transformation

    CONTINUING ORGANIC TRANSFORMATION Impact of Cost Programs Key Cost Transformation Actions in 2013/14 $ Billions Optimize handset lifecycle and remorse management 1.7 Improve operational and back office efficiencies 1.1 Reduce network costs Business optimization Tighten policies on discretionary spen

  22. Slide 22: 2015 Guidance

    2015 Guidance Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 22

  23. Slide 23: Strong outlook for 2015

    STRONG OUTLOOK FOR 2015 4.9 BRANDED POSTPAID NET ADDS (M) 2.2–3.2 2.2–3.2  Continue strong momentum from 2014  Big push in 1Q15: Un-carrier 8.0 – Data Stash 2014 2015 ADJUSTED EBITDA ($ B) $6.8–$7.2 $6.8–$7.2 $5.6  Aim to grow approximately 25% at the mid-point  Realizing the benefits of scale 

  24. Slide 24: 2X revenue CAGR to create significant long-term value

    2X REVENUE CAGR TO CREATE SIGNIFICANT LONG-TERM VALUE 2012–2017 FINANCIAL GROWTH (% CAGR) CMD 2012: 5 year growth Total 3–5%  Significant outperformance of initial postpaid CMD 2015: Updated 5 year growth1 Revenue customer growth expectations drives revenue 7–9% upside two times the original plan A

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