Deutsche Telekom Ag · XETR:DTE
Deutsche Telekom — Q3 2014 Earnings Presentation
19 slides from Deutsche Telekom's earnings presentation, Nov 6, 2014
Slide 1: Deutsche Telekom Q3/14 Results
DEUTSCHE TELEKOM Q3/14 Results
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: Review Q3/14
REVIEW Q3/14 7 | ase @@ LIFE IS FOR SHARING.
Slide 4: Leading European Telco: Key Achievements in Q3
LEADING European TELCO: KEY ACHIEVEMENTS in Q3 KEY achievements LTE (79% POP coverage) and fiber roll out (40% Household coverage) continuing in Germany. Europe: 1.9k LTE-sites (+19%) added in Q3. All-IP migration: Europe achieves IP-Share of 35%. IP lines in Germany doubled versus year ago to 3
Slide 5: 9M/14: Key Figures
9M/14: KEY FIGURES Q3 9M € mn 2013 2014 Change 2013 2014 Change Revenue 15,525 15,648 0.8% 44,467 45,656 2.7% Adj. EBITDA 4,659 4,575 -1.8% 13,364 13,125 -1.8% Adj. net profit 823 800 -2.8% 2,400 2,023 -15.7% Net profit 588 506 -13.9% 1,682 3,034 80.4% Adj. EPS (in €) 0.18 0.17 -5.6% 0.55 0.45 -18.2
Slide 6: Germany: continued solid margin and revenue trends
GERMANY: continued solid margin and revenue trends Revenue Adj. EBITDA and margin (in %) 41.9 40.7 41.3 41.6 € mn Mobile Core fixed Wholesale services Others € mn 35.9 -1.5% -2.1% 5,670 5,634 5,483 5,464 5,587 2,375 2,027 2,230 2,256 2,324 2,006 1,957 1,871 1,881 2,006 0.0% Q3/13 Q4/13 Q1/14 Q2/14 Q
Slide 7: Germany Fixed: line losses -24% yoy, fiber net adds almost doubled
GERMANY Fixed: LINE losses -24%yoy for the 2nd consecutive quarter. fiber net adds almost doubled German broadband market1 Entertain customers mn -47k -22k -7k +7k -20k Cable 000 +12.1% 28.5 28.7 29.0 29.2 29.4 DSL Competitors 4.9 5.1 5.3 5.5 5.7 2,121 2,177 2,255 2,318 2,377 11.2 11.2 11.3 11.4 11.
Slide 8: Germany fixed: continued solid revenue trend in core fixed network
GERMANY fixed: continued solid Revenue trend in CORE fixed network Fixed network revenue (core fixed) fixed revenues (fixed line) € mn -2.4% € mn -2.5% TV 1,835 1,821 1,809 1,802 1,790 BB 2,542 2,535 2,483 2,487 2,481 241 244 251 259 263 Voice 1,065 1,057 1,046 1,042 1,034 -2.5% 529 520 512 501 493
Slide 9: Germany mobile: DT continues to outperform market
GERMANY mobile: DT continues to outperform market German mobile market service revenue1 Contract Net adds € mn E-Plus O2 Vodafone Telekom 000 638 Business 470 551 129 107 432 Consumer -1.0% 72 275 97 4,843 509 443 72 4,717 4,618 4,701 397 336 204 752 759 760 780 +3.7% 731 765 Q3/13 Q4/13 Q1/14 Q2/14
Slide 10: Germany: Integrated Network Rollout and All-IP Migration on track
germany: Integrated Network Rollout and All-IP Migration on track INS– STATUS LTE ROLLOUT INS– STATUS FIBEr ROLLOUT2 64.5 69.4 26.6 POP Coverage in mn Coverage 49.0 households 14.5 16.5 in mn and %1 85% and % 65% 60% 79% 40% 35% Q3/13 Q3/14 Target 2016 Q3/13 Q3/14 Target 2016 STATUS IP accesses (ret
Slide 11: TMUS: Record Branded Postpaid customer growth quarter
TMUS: Record Branded Postpaid customer growth quarter Revenue and service revenue Net additions +10.2% 2,391 2,345 US-$ mn Total revenue in 000 1,645 1,470 1,023 +8.8% Service revenue Total net adds 6,919 6,959 7,228 7,358 Branded: Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 6,764 5,013 5,018 5,193 5,331 5,523
Slide 12: Europe: strong margin as a result of radical focus on cost transformation
EUROPE: strong margin as a result of radical focus on cost transformation Revenue as reported Organic Revenue development € mn € mn -3.6% -3.6% 3,440 3,440 28 -28 -93 84 3,317 3,440 3,486 3,125 3,163 3,317 -114 Q3/13 Cons./ FX Trad. Mobile Growth Q3/14 Decons. Telco & Regulation areas1 Q3/13 Q4/13 Q
Slide 13: Europe: continued momentum in mobile and fixed key growth areas
EUROPE: continued Momentum IN MOBILE AND FIXED KEY Growth AREAS Pockets of growth – broadband and TV1 Net adds – broadband and TV1 mn broadband accesses TV customers in 000 broadband net adds TV net adds 5.01 5.07 5.14 5.18 102 105 4.94 3.62 3.67 70 70 3.40 3.50 3.56 58 55 54 61 38 51 Q3/13 Q4/13 Q1
Slide 14: Europe: successful revenue and cost transformation
EUROPE: SUCCESSFUL REVENUE AND COST TRANSFORMATION Revenue transformation Technology and Cost transformation Growth Areas1 Connected Home share IP share of EU fixed FTEs in 000 share of total revenues of fixed revenues network access lines (end of period) +4pp +1pp +11pp -6% 22% 26% 21% 22% 35% 56 5
Slide 15: Systems Solutions: cost reduction measures bear first fruit
SYSTEMS SOLUTIONS: cost reduction measures bear first fruit T-systems financials as reported Revenue Market Unit € mn total revenue Adj. opex Adj. ebitda € mn -4.7% 1,761 1,902 1,679 1,674 1,678 -4.9% -6.7% 0.0% 2,174 2,068 2,021 197 197 1,885 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Adj. EBIT and Margin Marke
Slide 16: Financials: FCF in line with FY Target
FINANCIALS: FCF in line with FY Target Adj. net income ROCE development2 -2.8% +1.2pp € mn % 823 800 -84 64 -78 2 73 5.1 6.3 Q3/13 adj. Financial D&A Taxes Minorities Q3/14 9M/13 NOPAT NOA 9M/14 EBITDA result Free cash flow1 Net debt development € mn -21.2% € bn 1,427 41.4 41.8 188 -233 1,125 0.3 -2
Slide 17: Financials: Balance sheet ratios within target ranges
FINANCIALS: BALANCE SHEET ratios within target ranges € bn 30/09/2013 31/12/2013 31/03/2014 30/06/2014 30/09/2014 Balance sheet total 115.3 118.1 117.3 118.0 125.0 Shareholders’ equity 32.0 32.1 32.8 32.5 34.0 Net debt 39.7 39.1 38.0 41.4 41.8 Net debt/Adj. EBITDA1 2.3 2.2 2.2 2.4 2.4 Equity ratio 2
Slide 18: 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: 18
Slide 19: Thank you!
THANK YOU!