Slide 1: Deutsche Telekom Q2/14 Results
DEUTSCHE TELEKOM Q2/14 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 Q2/14
REVIEW Q2/14 7 | ase @@ LIFE IS FOR SHARING.
Slide 4: Leading Telco: Key Achievements in Q2
LEADING TELCO: KEY ACHIEVEMENTS in Q2 KEY achievements LTE (77% POP coverage) and fiber roll out (39% Household coverage) continuing in Germany. Further progress in Europe: Poland launched LTE in June All-IP migration: Germany accelerates to 527k migrations in Q2. Europe achieves IP-Share of 32%
Slide 5: H1/14: Key Figures
H1/14: KEY FIGURES Q2 H1 € mn 2013 2014 Change 2013 2014 Change Revenue 15,157 15,114 -0.3% 28,942 30,008 3.7% Adj. EBITDA 4,417 4,429 0.3% 8,705 8,550 -1.8% Adj. net profit 810 636 -21.5% 1,577 1,223 -22.4% Net profit 530 711 34.2% 1,094 2,528 131.1% Adj. EPS (in €) 0.19 0.15 -21.1% 0.37 0.28 -24.3
Slide 6: Germany: Solid revenue trend and strong margin
GERMANY: SOLID revenue trend and strong margin Revenue Adj. EBITDA and margin (in %) 40.6 41.9 40.7 41.3 € mn Mobile Core fixed Wholesale services Others € mn 35.9 -1.8% -1.0% 5,565 5,670 5,634 5,483 5,464 2,279 2,375 2,027 2,230 2,256 1,925 2,006 1,957 1,871 1,881 -2.3% Q2/13 Q3/13 Q4/13 Q1/14 Q2/1
Slide 7: Germany Fixed: Solid growth in TV and fiber – line losses on ten year low
GERMANY Fixed: SOLID Growth in TV and fiber – line losses on ten year low German broadband market1 Entertain customers mn -47k -22k -7k +7k Cable 000 +11.5% 28.3 28.5 28.7 29.0 29.2 DSL Competitors 4.7 4.9 5.1 5.3 5.5 2,078 2,121 2,177 2,255 2,318 11.2 11.2 11.2 11.3 11.4 DT 12.430 12.383 12.360 12.
Slide 8: Germany fixed: Slight improvement in retail mainly due to reduced line losses
GERMANY fixed: SLIGHT Improvement in retail mainly due to Reduced line losses Fixed network revenue (core fixed and Wholesale) fixed revenues (fixed line) € mn -1.2% € mn -2.9% TV 1,856 1,835 1,821 1,809 1,802 BB 3,371 3,405 3,408 3,339 3,332 239 241 244 251 259 Voice 1,075 1,065 1,057 1,046 1,042 1
Slide 9: Germany mobile: DT continues to grow service revenue market share
GERMANY mobile: DT continues to grow SERVICE revenue market share German mobile market service revenue1 Contract Net adds € mn E-Plus O2 Vodafone Telekom 000 638 Business 470 551 434 129 107 Consumer -2.4% 67 72 275 4,820 4,843 509 443 72 4,717 4,618 4,701 367 397 -0.5% 204 764 752 759 760 731 -2.7%
Slide 10: Germany: Integrated Network Rollout and All-IP Migration fully on track
germany: Integrated Network Rollout and All-IP Migration fully on track INS– STATUS LTE ROLLOUT INS– STATUS FIBEr ROLLOUT2 Outdoor1 POP Coverage in mn 26.6 62.8 69.4 Coverage households 15.9 14.2 65% in mn and % 44.1 and % 77% 85% 35% 39% 54% Q2/13 Q2/14 Target 2016 Q2/13 Q2/14 Target 2016 STATUS IP
Slide 11: TMUS: EBITDA and margin recovery as promised – ongoing strong customer growth
TMUS: EBITDA and margin recovery as promised – ongoing strong customer growth Revenue and service revenue Net additions +15.3% 2,391 US-$ mn Total revenue in 000 1,645 1,470 1,130 1,023 +14.6% Service revenue Total net adds 6,764 6,919 6,959 7,228 Branded: Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 6,305 4,624 5
Slide 12: Europe: Adj. EBITDA margin driven by cost savings
EUROPE: ADJ. EBITDA Margin Driven by cost savings Revenue as reported Organic Revenue development € mn -7.9% € mn -5.3% 3,435 3,339 3,486 -71 -25 69 3,163 3,435 3,440 3,125 3,163 -81 -164 Q2/13 Cons./ FX Trad. Mobile Growth Q2/14 Decons. Telco & Regulation areas1 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Other
Slide 13: Europe: Growth in mobile and fixed key areas
EUROPE: GROWTH IN MOBILE AND FIXED KEY 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 4.94 5.01 5.07 5.12 102 105 4.87 3.05 3.40 3.50 3.56 3.62 61 76 70 70 58 55 54 61 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q2/
Slide 14: Europe: Revenue and cost transformation ongoing
EUROPE: REVENUE AND COST TRANSFORMATION ONGOING 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) +3pp +2pp +11pp -6.8% 22% 25% 21% 23% 32% 58 54
Slide 15: Systems Solutions: Revenue and EBITDA in Q2 driven by tel-it
SYSTEMS SOLUTIONS: Revenue AND EBITDA in Q2 driven by tel-it T-systems financials as reported Revenue Market Unit € mn total revenue Adj. opex Adj. ebitda € mn -6.0% +0.8% -2.2% 37.1% 1,781 1,761 1,902 1,679 1,674 2,170 2,187 2,002 1,957 210 288 Q2/13 Q2/14 Q2/13 Q2/14 Q2/13 Q2/14 Q2/13 Q3/13 Q4/13
Slide 16: Financials: FCF on track for guidance - net debt reaches peak
FINANCIALS: FCF on track for guidance - net debt reaches peak for 2014 reduction expected in next quarters Adj. net income ROCE development3 -21.5% +2.5pp € mn % 810 39 7.4 12 -127 -94 636 -4 4.9 Q2/13 adj. Financial D&A Taxes Minorities Q2/14 H1/13 NOPAT NOA H1/14 EBITDA result Free cash flow2 Net
Slide 17: Financials: Balance sheet ratios remain in guardrails
FINANCIALS: BALANCE SHEET ratios Remain in guardrails € bn 30/06/2013 30/09/2013 31/12/2013 31/03/2014 30/06/2014 Balance sheet total 116.2 115.3 118.1 117.3 118.0 Shareholders’ equity 31.3 32.0 32.1 32.8 32.5 Net debt 41.4 39.7 39.1 38.0 41.4 Net debt/Adj. EBITDA1 2.4 2.3 2.2 2.2 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!