Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Q3 2013 Earnings Presentation

21 slides from Deutsche Telekom's earnings presentation, Nov 7, 2013

  1. Slide 1: Deutsche Telekom Q3/13 Results

    DEUTSCHE TELEKOM Q3/13 RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER This ppresentation contains forward-lookingg statements that reflect the current views of Deutsche Telekom managementg with respect p to future events. These forward- looking statements include statements with regard to the expected development of revenue, earnings, profits from operation

  3. Slide 3: Review Q3 2013

    REVIEW Q3 2013

  4. Slide 4: Q3/13 Key Achievements: Organic Group Revenue Growth – FY Guidance Confirmed

    Q3/13 KEY ACHIEVEMENTS: ORGANIC GROUP REVENUE GROWTH – FY GUIDANCE CONFIRMED  Growth in key areas: 1,296k mobile contract net adds, 153k TV net adds, 21k broadband net adds.  Revenue Re en e grows gro s 6.0% 6 0% to 15.5 15 5 billion € driven dri en by b the US. US Organic re revenue en e growth g

  5. Slide 5: Q3/13: Key Figures

    Q3/13: KEY FIGURES Q3 Q1-Q3 € million 2012 2013 Change 2012 2013 Change Revenue 14,651 15,525 6.0% 43,462 44,467 2.3% Adj. EBITDA 4,782 4,659 --2.6% 13,965 13,364 -4.3% Adj net profit Adj. 929 823 -11.4% 11 4% 2 337 2,337 2 400 2,400 2 7% 2.7% Net profit -7,021 588 n.a. -5,994 1,682 n.a. Adj. EPS (i

  6. Slide 6: Germany: Solid Revenue Trends – Adj. EBITDA Margin at 41.9%

    GERMANY: SOLID REVENUE TRENDS – ADJ. EBITDA MARGIN AT 41.9% 41 9% Revenues Adj. EBITDA and adj. EBITDA-margin (in %) € mn € mn 41 9 41,9 40 5 40,5 40 6 40,6 41 9 41,9 Mobile Core fixed Wholesale services Others 36,1 -1.1% -1.2% 2,401 2,074 2,255 2,279 2,375 5 736 5,736 5 731 5,731 5 566 5,566 5 565

  7. Slide 7: Germany: Fixed – Line Losses Reduced Significantly

    GERMANY: FIXED – LINE LOSSES REDUCED SIGNIFICANTLY German broadband market1 Average revenue per access growing € mn 27.7 27.9 28.2 28.3 28.5 Cable in € 25.8 25.9 26.1 26.2 26.2 TP 4.1 4.3 4.6 4.7 4.9 DSL Competitors DP 11.1 11.1 11.2 11.2 11.2 38 38 39 39 38 DT 32 32 32 32 32 SP 17 17 17 17 17 ARPA

  8. Slide 8: Germany: Mobile – Outperforming Competition in Q3

    GERMANY: MOBILE – OUTPERFORMING COMPETITION IN Q3. STABLE UNDERLYING SERVICE REVENUE EXPECTED FOR FY German mobile market service revenue TD mobile service revenue excl. MTR cut € mn E Plus E-Plus O2 Vodafone Telekom € mn -1.0% 1 0% 1,749 1,680 1,673 1,731 1,628 -4.7% 31 MTR 5,114 4,965 4 722 4,722

  9. Slide 9: TMUS: Significant Improvement in Customer Metrics and Postpaid Churn

    TMUS: SIGNIFICANT IMPROVEMENT IN CUSTOMER METRICS AND POSTPAID CHURN Revenue and service revenue Net additions US-$ US $ mn +20.9% Total revenue in 000 1,130 1,023 , 160 61 579 +38.1% Service revenue Total net adds 4,916 4,678 6,305 6,764 Branded: Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 4,897 4,146 4,005 3,90

  10. Slide 10: TMUS: LTE Network Roll Out and Metro Integration Ahead of Plan

    TMUS: LTE NETWORK ROLL OUT AND METRO INTEGRATION AHEAD OF PLAN LTE covered POPs  4G LTE rollout and modernization  203 million 4G LTE POPs in 254 metro areas mn  Achieved 200 million POPs goal one quarter early  94 of Top 100 markets covered with LTE 225 203  Metro Integration  MetroPCS spectr

  11. Slide 11: Europe: Revenue Trend Improving in Continuing Tough Environment

    EUROPE: REVENUE TREND IMPROVING IN CONTINUING TOUGH ENVIRONMENT Revenue  Total revenue – Organic revenue decline of 3.4% better than in previous quarters € mn -6.0% 6 0%  Negative mobile regulation effects: approx. approx 75% driven by PL PL, GR -3.4% and NL 3,654 -56 3,558 -40 3,436 -116 81 19 

  12. Slide 12: Europe: Strong Performance in Growth Areas

    EUROPE: STRONG PERFORMANCE IN 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 4.92 5.01 5.07 5.13 5.19 105 110 83 79 2.83 2.94 3.01 3.09 3.45 53 68 59 72 58 68 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q3/12

  13. Slide 13: Europe: Commercial and Technology Initiatives Driving Revenue and Cost Transformation

    EUROPE: COMMERCIAL AND TECHNOLOGY INITIATIVES DRIVING REVENUE AND COST TRANSFORMATION Revenue transformation Technology and Cost transformation Growth Areas1 Connected Home share All-IP share of EU fixed FTEs share of total revenues of fixed revenues network access lines (end of period) +3pp +0.6pp

  14. Slide 14: Systems Solutions: Solid Development at Market Unit

    SYSTEMS SOLUTIONS: SOLID DEVELOPMENT AT MARKET UNIT Revenue  Solid development in order entry with €1.8 billion (+11.6%)  Reported revenues at Market Unit slightly decreasing € mn due to +1.8% Market Unit 2,245 2,829 2,319 2,273 2,286  Currency: -45 million € 1,894 2,127 1,893 1,884 1,873 -1.1% 

  15. Slide 15: Financials: Q3/13 FCF and Net Income

    FINANCIALS: Q3/13 FCF AND NET INCOME Free cash flow Q3/13 Adj net income Q3/13 Adj. € mn € mn -39.1% -11.4% 2,344 929 -123 823 -550 239 -101 25 -350 1 427 1,427 -146 146 -17 Q3/12 Cash gen. Capex (excl. Other Q3/13 Q3/12 adj. EBITDA Financial D&A Taxes Minorities Q3/13 from spectrum) result operatio

  16. Slide 16: Financials: 9M/13 Improvement in ROCE and Adj. EPS

    FINANCIALS: 9M/13 IMPROVEMENT IN ROCE AND ADJ. EPS ROCE development Q1-Q3/13 Q1 Q3/13 Adj EPS development Q1-Q3/13 Adj. Q1 Q3/13 in % € per share +9.8pp +1.9% 5.1 0.54 0.55 -0.04 0 04 0 02 0.02 -0.14 0.20 -0.04 -4.7 9M/12 adj. EBITDA Financial D&A Taxes Minorities 9M/13 result 9M/12 NOPAT NOA 9M/13

  17. Slide 17: Financials: Net Debt Reduced Due to FCF and Sale of Globul

    FINANCIALS: NET DEBT REDUCED DUE TO FCF AND SALE OF GLOBUL Net debt development Q2/13  Ass eexpected pected FCFC aandd co contribution t but o from o GGlobul obu sa salee have a e reduced educed net et debt in the 3 quarter rd € mn -4.0%  Other includes 200 million € dividend payment to minority 4

  18. Slide 18: Financials: Balance Sheet – Improved Ratios

    FINANCIALS: BALANCE SHEET – IMPROVED RATIOS € bn 30/09/2012 31/12/2012 31/03/2013 30/06/2013 30/09/2013 Balance sheet total 108.2 107.9 108.8 116.1 115.3 Shareholders’ equity 30.4 30.5 31.0 31.3 32.0 Net debt 39 0 39.0 36 9 36.9 37 1 37.1 41 4 41.4 39 7 39.7 Net debt/Adj. EBITDA1 2.1 2.1 2.1 2.4 2.3

  19. Slide 19: Deutsche Telekom Q3 2013 Results Conference Call Q&A

    DEUTSCHE TELEKOM Q3 2013 RESULTS CONFERENCE CALL Q&A Questions can be asked via the telephone conference call: 0800 182 6766 0800 028 0471 +1 866 306 3455 +49 69 403 59 619 If you want to ask a question, please press “*1”. 1 . If you want to cancel your question, please press “#”. 19

  20. Slide 20: 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 te e o co / esto s IR webpage: IR twitter account: IR youtube playlist: 20

  21. Slide 21: Thank You!

    THANK YOU!

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