Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q2 2011 Earnings Presentation
24 slides from Deutsche Telekom's earnings presentation, Aug 4, 2011
Slide 1: Q2/11 – Results Presentation. Deutsche Telekom.
Q2/11 – Results Presentation. Deutsche Telekom. August 4, 2011
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
Slide 3: Agenda
Agenda. Deutsche Telekom Results Presentation. René Obermann CEO Timotheus Höttges CFO 3
Slide 4: Q2 2011 Highlights
Q2 2011 Highlights. Structural solution for the US-business: Regulatory process running according to plan Germany successfully continues stabilization of adj. EBITDA, adj. EBITDA margin exceeds 40%, line losses of 295k on record low level Europe: margin recovery in Poland, Netherlands and Aust
Slide 5: Q2/11 Overview. Continuing and discontinued operations
Q2/11 Overview. Continuing and discontinued operations. Revenue (€ million) Continuing operations Adj. EBITDA (€ million) Continuing operations -3.3% -2.6% 11,346 10,968 3,894 3,793 18 -396 11 -112 Q2/10 F/X Organic Q2/11 Q2/10 F/X Organic Q2/11 Revenue Q2/10 vs. Q2/11 (€ million) Adj. EBITDA Q2/10
Slide 6: Q2/11 Key financials
Q2/11 Key financials. in € million Q2/10 Q2/11 change in % Revenue from Continuing operations 11,346 10,968 -3.3% Revenue incl. the US 15,531 14,475 -6.8% Adj. EBITDA from Continuing operations 3,894 3,793 -2.6% Adj. EBITDA incl. the US 5,012 4,687 -6.5% Adj. net profit 814 951 16.8% Net profit
Slide 7: Strategy update: growth areas
Strategy update: growth areas. Ambition Deutsche Telekom growth areas1 Q2/10 Q2/11 Change 2015 Revenue (€ bn) Mobile internet 1.1 1.2 0.1 13% ≈ 10 thereof GER and EU 0.5 0.7 0.1 23% Connected Home2 1.6 1.6 0.0 0.0% ≈7 thereof GER 1.3 1.3 0.0 3% Online consumer services3 0.2 0.2 0.0 0.5% 2-3 T-System
Slide 8: 2011 guidance reiterated
2011 guidance reiterated. Guidance (in € billion) As a result of the sale of T-Mobile US guidance of “around 19.1 billion” split into: Discontinued operation: US with stable EBITDA over FY 2010 of around US$5.5 billion or around €4.2 billion based 19.5 ≈19.1 on F/X-rate of 1.33 (average rate of
Slide 9: Germany: adj. EBITDA margin exceeds 40%
Germany: adj. EBITDA margin exceeds 40%. Revenue (€ million)* Adj. EBITDA (€ million) -3.4% 0.0% 6,197 6,317 6,442 5,991 5,989 2,438 2,523 2,358 2,384 2,439 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Adj. opex (€ million) Adj. EBITDA margin (in %) 41 40.7 39.9 39.7 -6.2% 40 39.3 39
Slide 10: Germany revenue: continued focus on data & TV opportunity
Germany revenue: continued focus on data & TV opportunity. Fixed network revenues (€ million)1 Mobile service revenue2 (€ million) -4.5% +0.1% 1,766 1,813 1,756 1,690 1,767 4,234 4,242 4,376 4,063 4,045 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 2play + 3play customers ( million) Mo
Slide 11: Germany: #1 in broadband and mobile service revenue
Germany: #1 in broadband and mobile service revenue. Broadband access lines market share1 (%) More than 50% of the domestic fixed customer base of 24.0mn are broadband customers 46.6 46.3 46.0 45.8 45.6 Lowest line losses since years with only 295k (339k in Q1/11) 25.3 25.6 26.0 26.4 26.6 Soli
Slide 12: Germany: Growing SMS and traffic volume through bundling safeguards revenue
Germany: Growing SMS and traffic volume through bundling safeguards revenue. Service Revenue mix reflects focus on data and bundles Share of billed consumer contract SMS 11% business 15% 2% 17% prepaid 31% 2% potential other 13% revenue consumer incoming address- consumer contract out of bundle able
Slide 13: Europe – growth in key market KPIs
Europe – growth in key market KPIs. TV customer (million) Smartphone share (%)1 +25% +119% 2.41 2.59 2.21 2.35 46% 2.08 43% 34% 0.73 30% 0.65 0.71 IPTV 21% 0.52 0.57 +42% Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Broadband accesses (million)2 Mobile contract subscriber (million)2 +
Slide 14: Europe: area wide smartphone campaign leverages best practices
Europe: area wide smartphone campaign leverages best practices and maximizes business impact. Alignment on key success factors Smartphone Push Levers Terminals YoY Smartphone Data Attach Rate SP & Data Dispatches (k) of Gross Adds Increase (k) Pricing ATL +114% +253% +65% BTL 1,017 61% 620 VAS 37% T
Slide 15: Europe – integrated markets: high margins defended and better revenue trends
Europe – integrated markets: high margins defended and better revenue trends compared to Q1. Revenue (€ million) Greece: Strong position in Greece mobile market: Cosmote service revenue -8% market share up 0.7pp -1% -7% -1% Fixed hampered from line losses and regulation 963 886 Croatia: 289 269
Slide 16: Europe – mobile centric: margin recovery
Europe – mobile centric: margin recovery. Revenue (€ million) Poland: Improving macroeconomic conditions 0% +5% -3% Underlying slight revenue growth driven by data revenue -7% Smartphone share in new handsets exceeds 42%, leads to leading ARPU 451 453 448 470 in industry but limits net adds in
Slide 17: Systems Solutions: revenues up by 1.5% in Q2/11
Systems Solutions: revenues up by 1.5% in Q2/11. Revenue (€ million) Revenue increase yoy of +1.5 % up to €2,276 million External revenues up +1.7% to €1,638 million Temporary focus on execution and quality assurance of big +1.5% deals rather than new business 2,479 Order entry of €2,039mn d
Slide 18: Systems Solutions: Save for Service cost savings
Systems Solutions: Save for Service cost savings. Adj. EBITDA / margin Adj. EBIT / margin Adj. EBITDA at €197million with a margin of 8.7% Adj. EBIT margin in Q2/11 down to 2.0% from 3.4% in Q2/10, yet improved qoq by 0.7pp Higher opex related to big deal execution had an impact on 10.3% 8.4%
Slide 19: US: sequential improvement in adj. EBITDA in ongoing difficult operational environment
US: sequential improvement in adj. EBITDA in ongoing difficult operational environment. Service revenues (US$ million) Net adds in ‘0001 Contract Prepaid -1.3% 283 190 228 231 106 4,605 4,607 4,615 4,556 4,543 -54 -199 -251 -281 -382 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Adj. E
Slide 20: Free cash flow: full year guidance confirmed
Free cash flow: full year guidance confirmed. Development of free cash flow Q2/11 over Q2/10 (€ million) Guidance of slightly growing to stable free cash flow over 2010 level of €6.5 billion confirmed H1 2011 free cash flow with €2.8 billion basically on last year’s level of €2.9 billion As ex
Slide 21: HY1 2011 Save for Service results
HY1 2011 Save for Service results. Cost base development HY1/10 vs. HY1/11 (€ billion) Contribution HY1/2011 -1.6 (-7%) by Business Unit (€ million) Realized 22.10 Germany 348 USA 164 0.60 0.12 Europe 141 Systems Solutions 250 GHS 16 0.92 DT Group 919 Savings realized in HY1 of €919 million result
Slide 22: Ongoing solid balance sheet ratios and improved rating outlook
Ongoing solid balance sheet ratios and improved rating outlook. in € billion 30/06/2011 31/03/2011 31/12/2010 30/09/2010 30/06/10 Balance sheet total 123.1 123.2 127.8 127.8 132.8 Shareholders’ equity 39.3 42.7 43.0 43.4 44.8 Net debt 43.3 41.8 42.3 43.7 46.3 Net debt/adj. EBITDA1 2.3 2.2 2.2 2.2 2.
Slide 23: Q&A - Please press "*1" to ask a question
Q&A - Please press “*1” to ask a question. René Obermann CEO Timotheus Höttges CFO Niek Jan van Damme CEO Germany For remaining questions please contact the IR department after the call. 23
Slide 24: Thank you for your attention!
For further questions please contact the IR department: Investor Investor Relations, Relations, Bonn Bonn office office Investor Investor Relations, Relations, New New York York office office Phone Phone +49 +49 228 228 181 181 -- 88 88 88 80 80 Phone Phone +1 +1 212 212 424 424 2959 2959 Fax Fax +4