Telefonica Deutschland Holding AG · LS:A1J5RX

Telefonica Deutschland — H1 2020 Earnings Presentation

17 slides from Telefonica Deutschland's earnings presentation, Jul 29, 2020

  1. Slide 1: Preliminary results Q2/H1 2020

    Telefónica Deutschland Preliminary results Q2/H1 2020 29 July 2020

  2. Slide 2: Disclaimer

    Disclaimer This document contains statements that constitute forward-looking statements and expectations about Telefónica Deutschland Holding AG (in the following “the Company” or “Telefónica Deutschland”) that reflect the current views and assumptions of Telefónica Deutschland's management with res

  3. Slide 3: Driving intact business dynamics despite COVID-19

    Driving intact business dynamics despite COVID-19 H1 20 GROWTH +2.0% +3.8% 1 -1.9% +2.4% 1,2 13.1% & REVENUE y-o-y OIBDA2 y-o-y CAPEX/SALES PROFITABILITY CUSTOMER EXPERIENCE & +347k 14.3% Stable Postpaid net adds Own brand annualised churn Own brand postpaid ARPU DIGITALISATION (ex 116k M2M) rate at

  4. Slide 4: Seeing encouraging signs of operational recovery with phased easing of COVID-19 restrictions

    Seeing encouraging signs of operational recovery with phased easing of COVID-19 restrictions O2 gross adds – recovery to pre COVID-19 level Prepaid top up bookings – fully recovered JAN FEB MAR APR MAY JUN JAN FEB MAR APR MAY JUN O2 churners – reduced to lower levels Roaming revenue – initial signs

  5. Slide 5: Confirming FY20 revenue & OIBDA outlook while anticipating C/S below 17-18%

    Confirming FY20 revenue & OIBDA outlook while anticipating C/S below 17-18%; continuously monitoring COVID-19 developments Outlook FY20 Mid-term guidance 2020/22 H1 20 +2.0% +3.8%1 Flat to slightly positive 3,636 Revenue (incl. reg. impacts of ~EUR 20-30m) 3,564 TEF D with cumulated growth of min. 5

  6. Slide 6: Crystallising value - largest MNO-led rooftop transaction in Europe

    Crystallising value - largest MNO-led rooftop transaction in Europe Deal rational Deal structure • Driving value crystallization • ~10k rooftop sites & up to 80 tower sites • Enhancing financial flexibility • ~60% of locations expected to be transferred by Aug-20, remaining ~40% in mid-21 • Improvin

  7. Slide 7: Providing enhanced network quality – on track to achieve FY20 coverage target

    Providing enhanced network quality – on track to achieve FY20 coverage target Steady progress with network roll-out strategy despite COVID-19 40% of FY20 FY20 coverage target Ericsson for 5G core LTE target achieved of 7.6k LTE sites 2019 2020 >90% pop coverage 97% household coverage in NRW 5G in to

  8. Slide 8: Reiterating key priorities of strategic plan for the 'new 20s'

    Reiterating key priorities of strategic plan for the ‘new 20s’ Accelerating growth trajectory  Boost rural coverage, accelerate urban capacity Commitment to deliver attractive Smart bundling to improve loyalty shareholder remuneration Technology-agnostic internet solutions; FMS to improve profitabi

  9. Slide 9: Financial update

    Financial update 9

  10. Slide 10: Revenue – operational trends intact

    Revenue – operational trends intact Revenue slightly up despite reduced roaming contribution Operational MSR trend intact despite tougher comps (EUR m) MSR Handset Fixed Other (EUR m) -3.3% Operational1 +1.3% +0.3% Operational1 +3.8% 1,319 1,361 1,341 1,311 1,275 Q2’19 Q3’19 Q4’19 Q1 ’20 Q2 ’20 1,78

  11. Slide 11: Gradual trading recovery & early signs of ARPU rebound post lockdown

    Gradual trading recovery & early signs of ARPU rebound post lockdown Focus in mobile on profitable growth Sustained demand for VDSL drives growth Net adds (k) Postpaid (ex M2M) M2M Net adds (k) Retail 1.2% 1.4% 1.2% 1.3% 1.1% 2.2m 456 O2 PO churn 392 DSL base 301 227 236 367 443 357 158 38 188 31 25

  12. Slide 12: Operational OIBDA continues to grow in Q2 20

    Operational OIBDA1,2 continues to grow in Q2 20 Revenue impacted by special factors with flow-through to OIBDA (EUR m) 31 Operational1,2 +2.3% -5.1% -567 y-o-y 32.2% margin -142 1,790 -557 -3 552 Revenue Other Income Supplies Personnel expenses Other Exceptional effects OIBDA adj. expenses3 for exce

  13. Slide 13: Free Cash Flow dynamics reflect usual seasonal movements

    Free Cash Flow dynamics reflect usual seasonal movements Evolution of H1 20 FCF (EUR m) WC movements & adjustments: EUR -264 m -475 1.079 -73 -10 -11 -170 -25 316 -336 -21 OIBDA CapEx ex spectrum1 CapEx payables1 Prepayments Restructuring Other working Others FCF pre dividends & Lease payments FCF a

  14. Slide 14: Key take-aways

    Key take-aways Business dynamics intact - confirming FY20 outlook and mid-term guidance for revenue & OIBDA Strong trading performance driven by high demand for O2 Free & sustained retention focus while anticipating C/S to be below 17-18%; continuously monitoring COVID-19 developments Revenue – oper

  15. Slide 15: Management Q&A

    Telefónica Deutschland - Management Q&A 15

  16. Slide 16: Any further questions? Please reach out to us!

    Any further questions? Please reach out to us! Christian Kern Marion Polzer, CIRO Director Investor Relations Head of Investor Relations +44 7517 999 208 +49 176 7290 1221 christian.kern@telefonica.com marion.polzer@telefonica.com +49 89 2442 1010 Eugen Albrecht Senior Investor Relations Officer @ I

  17. Slide 17: Telefónica Deutschland

    Jelefonica Deutschland

Telefónica Deutschland Holding — H1 2020 Earnings Presentation on 6ix