Telefonica Deutschland Holding AG · LS:A1J5RX
Telefonica Deutschland — Q3 2014 Earnings Presentation
17 slides from Telefonica Deutschland's earnings presentation, Nov 10, 2014
Slide 1: Preliminary Results January – September 2014
Creating the Leading Digital Telco Preliminary Results January – September 2014 November 10, 2014 Public – Nicht vertraulich
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
Slide 3: Telefónica Deutschland management team
Telefónica Deutschland management team Markus Haas Thorsten Dirks Rachel Empey COO CEO CFO 3 Public – Nicht vertraulich
Slide 4: Successful start for the new Telefonica Deutschland
Successful start for the new Telefonica Deutschland The Leading Digital Telco Aug 29, ’14 Oct 1,‘14 Final EC Closing July 2, ‘14 clearance Conditional Feb 11, ’14 EC clearance TEF D EGM Oct 31, ‘13 Submission request to EC July 23, ‘13 Transaction Full management team appointed from day one announce
Slide 5: Building the Leading Digital Telco in Germany
Building the Leading Digital Telco in Germany Offer Best network Offer Superior customer Achieve Cost Leadership experience experience Synergies Improve Optimise Operating model Simplify Golden Grid for 2G/3G + LTE roll-out Multi-channel & Digital first Synergies & Lean operating model Keep the mome
Slide 6: Keeping momentum in the market
Keep the Keeping momentum in the market momentum Capture additional Leadership in Consumer opportunities in the Upsell/cross sell mobile SME segment Convergent solutions High-speed surfing with up to 100 Mbit/s Full alignment of Commercial Strategy across segments from Day One 6 Public – Nicht vertr
Slide 7: Rapid execution of integration activities
Integrate Rapid execution of integration activities Keep the quickly momentu m In execution from Day One Synergy plan (NPV in €bn) Network Golden Grid defined (~14K redundant BTS) OpEx 3.6 Headcount CapEx 1.9 restructuring plan defined (-1.6K FTEs1 by 2018) Integration 0.9 Costs Full alignment of Pr
Slide 8: A clear roadmap to transform the business into a truly digital operating model
A clear roadmap to transform the Transform the company business into a truly digital operating model Customer Journey Digital relevance Digital sales Digital Care Digital reach and content Digital portals Self-care apps Users help users Radically simplified backend & partnerships 8 Public – Nicht ve
Slide 9: Improved momentum & LTE driving performance
Improved momentum & LTE driving performance O2 brand gaining relevance as premium brand thanks to LTE and attractive bundles with new devices Focus on data monetization with individualized offers plus digital services to enhance customer experience Continued improvement in revenue performance
Slide 10: Commercial momentum driving mobile data monetization further
Commercial momentum driving mobile data monetization further Mobile postpaid: Evolution of Net Additions Smartphone penetration1 In k In % of O2 Consumer customer base postpaid prepaid +4.9 %p x3 +4.2%p 69.8% 74.1% 152 143 78 55 17.3% 22.2% -30 Q3 ’13 Q4 ’13 Q1 ’14 Q2 ’14 Q3 ’14 Q3 ’13 Q3 ’14 LTE ha
Slide 11: Continued improvement in revenue performance
Continued improvement in revenue performance Evolution of Revenues Year-on-year in % Total Revenues MSR exMTR -0,5% -2,5% -1,3% -1,8% -3,4% -4,4% -3,4% -7,0% -7,4% -8,8% Q3 ’13 Q4 ’13 Q1 ’14 Q2 ’14 Q3 ’14 Non-SMS data revenues Evolution of SMS Base Management Year-on-year Year-on-year in % In % of o
Slide 12: OIBDA y-o-y margin declining on increased commercial spend
OIBDA y-o-y margin declining on increased commercial spend OIBDA evolution Year-on-year in EUR million Margin 23.5% 20.7% 20.9% -16.0% -15.1% +864 Ex-restructuring costs +726 -17 -27 -168 +4 +70 Restructuring Transaction costs: 8m costs: 13m Jan – Sep Revenues Other Supplies Personnel Other Jan - Se
Slide 13: Solid financial profile maintained
Solid financial profile maintained Evolution of Free Cash Flow 1 Year-on-year in EUR million -2.7% +543 -82 +49 +18 +529 CapEx: -12.1% y-o-y FCF Jan – Sep 2013 Change in Change in Change in others FCF Jan – Sep 2014 pre dividend OIBDA-CapEx Working Capital pre dividend and pre capital increase Evolu
Slide 14: Q4 2014 outlook for new Telefónica Deutschland (Q3 2014 basis)
Q4 2014 outlook for new Telefónica Deutschland (Q3 2014 basis) Combined1 Q4 2014 outlook - consolidated Q3 2014 (€m) (On the basis of Q3’14 combined results) Total Revenue 2,002 • Similar revenue as in the previous quarter Mobile Service 1,424 • Good mobile trading momentum sustained Revenue • Moder
Slide 15: Main take-aways
Main take-aways Sustained positive momentum in O2 postpaid mobile following a clear commercial focus on brand, LTE & devices Data monetization driving better top line performance while sustaining underlying* OIBDA evolution Stable free cash flow sustaining our financial flexibility; intention
Slide 16: Telefónica Deutschland Q3 2014 results Q&A session
Telefónica Deutschland Q3 2014 results Q&A session 16 Public – Nicht vertraulich
Slide 17: Telefónica Deutschland
‘Jelefonica Deutschland
Telefónica Deutschland Holding — Q3 2014 Earnings Presentation on 6ix