Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Q1 2013 Earnings Presentation

21 slides from Deutsche Telekom's earnings presentation, May 2013

  1. Slide 1: Deutsche Telekom Q1/13 Results

    DEUTSCHE TELEKOM Q1/13 RESULTS

  2. 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, de

  3. Slide 3: Review Q1 2013

    REVIEW Q1 2013

  4. Slide 4: Q1 2013 Key Achievements: Continued Growth of Customer Base in Key Areas

    Q1 2013 KEY ACHIEVEMENTS: CONTINUED GROWTH OF CUSTOMER BASE IN KEY AREAS Regulatory decisions on ULL and Vectoring support investments in next generation infrastructure ACHIEVE-   Successful completion of merger with MetroPCS – consolidation as of May 1, 2013 MENTS  OTE accomplishes refinancing w

  5. Slide 5: Q1 2013: Key Figures

    Q1 2013: KEY FIGURES Q1 € bn 2012 2013 Change Revenue 14,432 13,785 -4.5% Adj. EBITDA 4,482 4,288 -4.3% Adj. net profit 586 767 30.9% Net profit 545 564 3.5% Adj. EPS (in €) 0.14 0.18 28.6% EPS (in €) 0.13 0.13 0.0% Free cash flow1 1,122 1,038 -7.5% Cash capex2 2,169 3,024 39.4% Net debt 38.6 37.1 -

  6. Slide 6: DT Group: Guidance 2013 Unchanged

    DT GROUP: GUIDANCE 2013 UNCHANGED Guidance 20131 (excl./incl. MetroPCS) Group revenues Group adj. EBITDA ≈€17.4 bn/≈€18.4 bn Full consolidation of MetroPCS as of May 1, 2013 Group FCF ≈€5 bn/≈€5 bn Update on adj. EBITDA incl. Group adj. EPS MetroPCS will be given with Q2 Group ROCE results Sharehold

  7. Slide 7: Germany: Ongoing Solid Revenue Trends – Adj. EBITDA Margin at 40.5%

    GERMANY: ONGOING SOLID REVENUE TRENDS – ADJ. EBITDA MARGIN AT 40.5% Revenues Adj. EBITDA and adj. EBITDA-margin (in %) € mn Mobile Core fixed Wholesale services Others € mn 41.4 41.9 41.9 40.5 -1.6% -3.8% 36.1 5,659 5,610 5,736 5,731 5,566 2,343 2,348 2,401 2,074 2,255 1,835 1,852 1,958 1,987 1,842

  8. Slide 8: Germany: Fixed – More Than 1 Million Fiber Customers

    GERMANY: FIXED – MORE THAN 1 MILLION FIBER CUSTOMERS German broadband market1) Average revenue per access growing in mn 27.4 27.6 27.7 27.9 28.2 Cable in € TP 25.6 25.7 25.8 25.9 26.1 3.8 3.9 4.1 4.3 4.6 DSL Competitors 39 39 DP 11.3 11.3 11.2 38 38 38 11.1 11.1 Telekom 32 32 32 32 32 SP 17 17 17 17

  9. Slide 9: Germany: Mobile Service Revenue Stabilized in Q1

    GERMANY: MOBILE SERVICE REVENUE STABILIZED IN Q1 – RETURN TO UNDERLYING REVENUE GROWTH EXPECTED FOR 2013 German mobile market service revenue Mobile service revenue excl. MTR cut € mn E-Plus O2 Vodafone Telekom € mn -0.1% 1,660 1,690 1,749 1,680 1,658 -2.7%1 30 1,628 MTR 4,996 5,114 4,965 4,880 767

  10. Slide 10: TMUS: Significant Improvement in Customer Metrics and Postpaid Churn

    TMUS: SIGNIFICANT IMPROVEMENT IN CUSTOMER METRICS AND POSTPAID CHURN Revenue and service revenue Net additions -9.3% 579 US-$ mn Total revenue in 000 187 160 61 -7.3% Service revenue Total net adds -205 4,894 4,897 4,916 4,678 Branded: Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 5,044 4,309 4,266 4,146 4,005 3,90

  11. Slide 11: TMUS: Creating the Value Leader in Wireless

    TMUS: CREATING THE VALUE LEADER IN WIRELESS Merger closed on April 30 MetroPCS T-Mobile US started trading on the NYSE on May 1 (ticker: TMUS) PROCESS Equity market cap of approx. $13 billion Spectrum: 61  72 MHz in Top 100 major metro areas; 63  76 MHz in Top 25 major metro areas MetroPCS Synergi

  12. Slide 12: Europe: Strong Performance in Growth Areas, Taxes, Regulation and Economy Weigh on Financials

    EUROPE : STRONG PERFORMANCE IN GROWTH AREAS, TAXES, REGULATION AND ECONOMY WEIGH ON FINANCIALS Revenue Pockets of growth – broadband and TV3 -6.9% +11% € mn mn broadband accesses 3,575 17 79 2 3,453 -126 TV customers -220 +5% 3,327 4.84 4.87 2.76 4.92 2.83 5.01 2.94 5.07 3.01 2.70 Q1/12 Old Telco Tr

  13. Slide 13: Europe: Commercial and Technology Initiatives Driving Revenue and Cost Transformation

    EUROPE: COMMERCIAL AND TECHNOLOGY INITIATIVES DRIVING REVENUE AND COST TRANSFORMATION Revenue & cost transformation Key developments Growth Areas1 Connected Home share Operations: share of Total Revenues of Fixed Revenues  OTE disposes Bulgarian subsidiary to Telenor at €717 million EV  TV custome

  14. Slide 14: Europe: OTE – Restructuring Successfully Accomplished

    EUROPE: OTE – RESTRUCTURING SUCCESSFULLY ACCOMPLISHED – COMMERCIAL EXCELLENCE Employees OTE group net debt Cash outs Div/share (EURc) 2.2 x EBITDA 11.79 31.1k 27.5k 0.0 ~1.2 x EBITDA1 FY10 FY12 4.3 bn € CAPEX (mn €) 751 554 YE10 Q1/13 ~1.9 bn € FY10 FY12 pro forma EBITDA margin YE10 Expected post Ex

  15. Slide 15: Systems Solutions: Further Efficiency Improvements

    SYSTEMS SOLUTIONS: FURTHER EFFIENCY IMPROVEMENTS Revenue  Increase in order entry by 33.0% to €2,098 million driven by deals such as € mn -5.6%  EADS, SBB etc. 2,456 2,486 2,829 Market Unit 2,245 2,319  Revenue down (-5.6%) driven by lower revenue at 1,889 1,929 2,127 1,893 0.2% Telekom IT (-24.9

  16. Slide 16: Financials: Good Q1 FCF and Net Income

    FINANCIALS: GOOD Q1FCF AND NET INCOME Free cash flow Q1/13 Adj. net income Q1/13 € mn € mn -7.5% +30.9% 1,122 1,038 767 -21 42 -105 586 -163 83 361 -194 94 Q1/12 Net Cash Capex (excl. Other Q1/13 Q1/12 adj. EBITDA Financial D&A Taxes Minorities Q1/13 gen. from spectrum) result operations  Reduction

  17. Slide 17: Financials: Net Debt Roughly Stable Versus YE 2012

    FINANCIALS: NET DEBT ROUGHLY STABLE VERSUS YE 2012 Net debt development Q1/13 € million +0.7% 36,860 37,119 -1,038 937 95 265 Q4/12 Free Spectrum Tax payment Other Q1/13 cash flow invest on AT&T (e.g. F/X) break-up fee 17

  18. Slide 18: Financials: Balance Sheet – Maintaining Solid Ratios

    FINANCIALS: BALANCE SHEET – MAINTAINING SOLID RATIOS € bn 31/03/2012 30/06/2012 30/09/2012 31/12/2012 31/03/2013 Balance sheet total 120.3 121.0 108.2 107.9 108.8 Shareholders equity 40.2 37.9 30.4 30.5 31.0 Net debt 38.6 41.0 39.0 36.9 37.1 Net debt/Adj. EBITDA1 2.1 2.2 2.1 2.1 2.1 Equity ratio 33.

  19. Slide 19: Deutsche Telekom Q1 2013 Results Conference Call Q&A

    DEUTSCHE TELEKOM Q1 2013 RESULTS CONFERENCE CALL Q&A Questions can be asked via the telephone conference call: 0800 182 6766 0800 028 0471 +1 866 306 3455 +49 69 403 59 619 If you want to ask a question, please press “*1”. If you want to cancel your question, please press “#”.

  20. 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: Follow us on @DT_IR

  21. Slide 21: Thank You!

    THANK YOU!

Deutsche Telekom — Q1 2013 Earnings Presentation on 6ix