Telefonica Deutschland Holding AG · LS:A1J5RX
Telefonica Deutschland — Q3 2013 Earnings Presentation
22 slides from Telefonica Deutschland's earnings presentation, Nov 7, 2013
Slide 1: Preliminary Results January – September 2013
Preliminary Results January – September 2013 Telefónica Deutschland Holding AG Public – Nicht vertraulich
Slide 2: Disclaimer
Disclaimer The financial information contained in this document (in general prepared under International Financial Reporting Standards (IFRS)) contains in respect of the results for the January-September 2013 period only preliminary numbers. The financial information and opinions contained in this d
Slide 3: Telefónica Deutschland Q3 2013 preliminary results presentation
Telefónica Deutschland Q3 2013 preliminary results presentation René Schuster Rachel Empey Markus Haas CEO CFO CSO Telefónica Deutschland Telefónica Deutschland Telefónica Deutschland Holding AG Holding AG Holding AG Telefónica Deutschland Holding AG 3 Public – Nicht vertraulich
Slide 4: Market environment, Development of our Strategy
Market environment Development of our Strategy Telefónica Deutschland Holding AG 4 Public – Nicht vertraulich
Slide 5: A continuing competitive and dynamic market
A continuing competitive and dynamic market Monetisation of Data Services is our first priority Commercial Propositions • Attractive smartphone & tariff bundles • Increasing focus on entry and prepaid smartphone tariffs • Speed & volume as prime differentiator • Targeted promotions to specific custo
Slide 6: Development on our strategic priorities
Development on our strategic priorities Strong focus on our core business & innovative product launches Strategic priorities 2013 Developments in Q3 ‘13 “Alles Drin”: all-included-bundles selling smartphones with data tariffs including Capitalise on multi-brand portfolio & superior customer prom
Slide 7: New O2 DSL All-in portfolio from October
New “O2 DSL All-in” portfolio from October 17 Built on customer insights, monetising speed O2 DSL All-in L O2 DSL All-in S O2 DSL All-in M (VDSL) Allnet Flat Telephony Flatrate to German fixedline and mobile voice Download Up to 8 MBit/s Up to 16 MBit/s Up to 50 MBit/s Upload Up to 1 MBit/s Up to 1
Slide 8: On-going regulatory proceedings
On-going regulatory proceedings Most relevant decisions to be taken in early 2014 Expected resolution Spectrum Renewal (Project 2016) • Submissions to the Regulator made by Telefónica Deutschland (Oct, 4) During 2014 Suspension of procedure until merger clearance Telefónica/E-Plus Spectrum reser
Slide 9: Acquisition of E-Plus
Acquisition of E-Plus On track with expected time plan Mid 2014 October 31, 2013 Q1 2014 Q2 2014 October 2, 2013 Rights Issue & Submission of TEF D EGM Regulatory KPN EGM Contribution Form CO to EC clearance in Kind • Creating a leading Digital Telco: scale benefits and enhanced data monetisation ca
Slide 10: January – September 2013 Operating & Financial performance
January – September 2013 Operating & Financial performance Telefónica Deutschland Holding AG 10 Public – Nicht vertraulich
Slide 11: Trading performance in Q3 2013
Trading performance in Q3 2013 A reflection of a consistent execution of our multibrand, data centric strategy Total access base Performance of postpaid net additions (55k) in k# +0.5% driven by focus on customer base management 25,320 25,437 y-o-y Steady adoption of “O2 Blue All-in” from new an
Slide 12: Focusing on key levers for data monetisation
Focusing on key levers for data monetisation Continuing to deliver on data monetisation strategy Smartphone penetration Fit demand to All-in portfolio in % of O2 Postpaid & Prepaid Customer Base Weighted ARPU in € Gross Adds Renewals Prepaid postpaid +12.8%p 69.8% y-o-y +4% +5% 17.3% +7.1%p y-o-y Q3
Slide 13: Overview of Key Financials
Overview of Key Financials Strong conversion from Operating Cash Flow to FCF TELEFÓNICA DEUTSCHLAND GROUP SELECTED CONSOLIDATED FINANCIAL DATA Unaudited (Euros in millions) January 1 to September 30 July 1 to September 30 2013 2012 % Chg 2013 2012 % Chg Revenues 3,671 3,871 (5.2) 1,225 1,317 (7.0) O
Slide 14: Revenue performance
Revenue performance Mobile data revenues continuing to be main driver Total revenue Wireless Service Revenue Structure 1 in EUR million Incoming 5% Voice 7% -7.0% 6% incoming sms 8% -6%p -4.6% y-o-y 1,317 27% Other 1 1,257 1,225 2 2 OOB 33% Wireline 338 311 311 (8.1%) 10%p Handset 165 147 147 (11.0%
Slide 15: Continued dynamics in O2 consumer postpaid
Continued dynamics in O2 consumer postpaid Trends stabilising on a quarter-on-quarter basis Main drivers for wireless service revenues Q-o-Q absolute performance ex MTRs % vs Q3-Q2 +2% SMS i/c +6% -18% Q2 ’13 Trading Tariff migrations Base effects Seasonal effects Q3 ’13 Value split of O2 Blue All-i
Slide 16: OIBDA performance
OIBDA performance Increasing commercial investments to improve customer base OIBDA margin Evolution of main commercial costs in % -0.6%p Retention costs Hardware Margin 1 24.2 23.5 y-o-y in % y-o-y in % +42% -51% Group Fees as % of Revenue 1.3% 1.5% Jan-Sep ’12 Jan-Sep ’13 Q3’12 Q3’13 Q3’12 Q3’13 OI
Slide 17: CAPEX development
CAPEX development Balancing investments for LTE expansion and 3G network quality CapEx in EUR million • Accelerating LTE roll-out driving CAPEX As % of increase yoy total revenues 11.7% 12.7% • Main metropolitan areas are covered +3.4% with LTE 452 468 • Further densification into rural areas 4G • I
Slide 18: Free cash flow development
Free cash flow development BBB Strong conversion of operating results into FCF1 supports dividend policy Free cash flow y-o-y evolution YTD in EUR million Leverage2) 0.6x -1.8% 553 549 543 32 88 111 115 Free Cash Flow Operating Working Capital Others incl. interest & Free Cash Flow pre dividends fro
Slide 19: Key take-aways
Key take-aways Strong focus on our mobile data strategy execution, delivering stable FCF and improved shareholder remuneration • Very dynamic German mobile market, focused on mobile data monetisation • Top line trends stabilising Q-o-Q while LTE is becoming a purchase driver • Increased commercial i
Slide 20: Q&A
Q&A Telefónica Deutschland Holding AG 20 Public – Nicht vertraulich
Slide 21: Q&A Telefónica Deutschland Q3 2013 results conference call
Q&A Telefónica Deutschland Q3 2013 results conference call Telefónica Deutschland Holding AG 21 Public – Nicht vertraulich
Slide 22: ‘Jelefonica
‘Jelefonica
Telefónica Deutschland Holding — Q3 2013 Earnings Presentation on 6ix