Slide 1: Deutsche Telekom Company presentation
Deutsche Telekom Company presentation May 2022
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, dep
Slide 3: Review Q1 2022 sector leading growth
Review Q1 2022 sector leading growth T-Mobile US1 • Service revenues up 6.6%, adj. Core EBITDA +10.2% • FCF at US$ 1,649 mn (+26.5%) • Strong customer intake, accelerated integration progress • FY Guidance raised across the board Ex US • Service revenues +1.6% organically • Adj. EBITDA AL +6.1% orga
Slide 4: Review 2021 accelerated delivery on CMD 2021 targets
Review 2021 accelerated delivery on CMD 2021 targets Organic growth Capital allocation/portfolio Shareholder value Commercial growth Decisive steps towards TMUS majority Adj. EPS taken (+5.2pp to 48.4%1) • 7.1 mn new postpaid subs • €1.22 in 2021 • 0.8 mn new broadband subs Sale of TM NL at €5.1 bn
Slide 5: Financials Q1 2022 reported strong growth
Financials Q1 2022 reported strong growth € mn Q1 2021 2022 Change Revenue 26,390 28,023 +6.2% Adj. EBITDA AL 9,245 9,873 +6.8% Adj. EBITDA AL (excl. US) 3,538 3,701 +4.6% Adj. Net profit 1,201 2,238 +86.3% Net profit 936 3,949 +321.9% Adj. EPS (in €) 0.25 0.45 +80.0% Free cash flow AL1 2,585 3,781
Slide 6: Financials Q1 2022 organic strong organic growth
Financials Q1 2022 organic strong organic growth Q1/22 Adj. EBITDA AL Q1/22 Adj. EBITDA AL2 Q1/22 Key Financials growth yoy, organic € mn % growth yoy, organic TMUS 0.3%1 Revenue +1.7% +€20 mn Service Revenues +4.7% GER 2,388 3.6% Service Revenues +€83 mn +1.6% (excl. US) EU 6.9% Adj. EBITDA AL +2.4
Slide 7: Financials 2017–2021 consistent growth in key KPIs
Financials 2017–2021 consistent growth in key KPIs Service revenues Adj. EBITDA AL FCF AL >€18 bn in % growth yoy, organic % growth yoy, organic € bn 2024e 7.9% 7.8%1 8.8 7.2% 7.0 6.3 6.3 3.7% 3.5% 4.9% 5.5 4.2% 2.6% 2.6% 1.6% 1.9% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 202
Slide 8: Strong ex US EBITDA growth outperformance
Strong ex US EBITDA growth outperformance EBITDA AL adj.: DT ex US vs. Ø Peer1 Ø Peer DTexUS [in %, organic growth yoy] 6 4,8 3,7 3,7 4 2,8 2,4 2 0 0,8 1,2 1,0 -2 -1,3 -4 -2,6 -6 2017 2018 2019 2020 2021 1) Peer group: 8 European Telco groups (Orange, Telefonica, Vodafone, BT, Telecom Italia, KPN, P
Slide 9: CMD 2018 review strong delivery on commitments
CMD 2018 review strong delivery on commitments Ambition Merger Impact Achievements 2017-20211 Revenue CAGR1 1–2% 3.3% Adj. EBITDA (AL) CAGR 2–4% 5.3%/7.7%2 Adj. EBITDA (AL) CAGR (ex US) 2–3% 3.7% FCF (AL) CAGR ~10%; 2021: >€8 bn Dilutive 18.7%; €8.8 bn FCF (AL) (ex US) 2021: ~€4
Slide 10: Indirect costs CMD 2018 target overdelivered, CMD 2021 target on track
Indirect costs CMD 2018 target overdelivered, CMD 2021 target on track Organic net savings 2017–2021 Organic net savings 2020–2024 € bn € bn 1.8 2018 CMD target €1.5 bn Germany/GHS1 1.0 • 9% of IDC AL saved -0.4 • Driven by greater agility and digitalization • Personal productivity Europe 0.4 +20% T
Slide 11: Financials Q1 2022 decline in net financial debt
Financials Q1 2022 decline in net financial debt Net debt excl. leases (AL) (Q1/22 over Q4/21) Leverage ratios € bn CMD: back in 2.25x–2.75x range YE 24 100.6 -3.8 98.1 0.6 0.8 1.3 3.10x -4.0 2.59x 2.6 Net Debt FCF AL Sales Spectrum F/X Effect CCI lease Derivatives Net Debt Excl. Leases Incl. Leases
Slide 12: Financials well balanced maturity profile with strong liquidity reserve
Financials well balanced maturity profile with strong liquidity reserve DT (ex US) bonds maturing Ex US liquidity position Credit lines € bn € bn Liquid assets 19.8 3.9 3.4 3.2 Ø 3.1 12.8 1.3 8.6 3.4 2.0 3.9 7.0 2022 2023 2024 2025 Liquidity Maturities Maturities Maturities Total maturities reserve
Slide 13: Operations Review 2021
Operations Review 2021
Slide 14: Networks leading with 5G, FTTH well on track
Networks leading with 5G, FTTH well on track FTTH (1 Gbps) 5G TM US 5G Germany Homes passed Ultra capacity 5G2 % of POPs +0.5% 3.8% mn mn POPs +7.1% 10.8 91 92 10.4 210 225 7.0 7.2 3.4 3.6 YE/21 Q1/22 YE/21 Q1/22 YE/21 Q1/22 On track for CMD targets Targeting 260m YE 2022 >5,000 antennas with
Slide 15: Customers consistent strong growth
Customers consistent strong growth Mobile net adds Fixed line net adds '000 US (postpaid) '000 Broadband 5,486 5,495 716 764 4,459 4,515 585 645 3,620 506 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2,167 Ex US (contract)1 TV 1,689 1,690 1,628 456 1,523 359 343 366 347 2017 2018 2019 2020 2021
Slide 16: Customers growing strongly
Customers growing strongly Mobile net adds Fixed line net adds2 '000 '000 1,318 1,210 US (postpaid) Broadband 203 Q1 fixed line net 141 adds impacted by changes in German telecoms law (TKG) Q1/21 Q1/22 Q1/21 Q1/22 390 Ex US (contract)1 308 TV 102 49 Q1/21 Q1/22 Q1/21 Q1/22 1 GER + EU + NL. GER: Own
Slide 17: Society and Environment strong ESG Performance in all dimensions
Society and Environment strong ESG Performance in all dimensions Societal agenda Environmental agenda Customer satisfaction Energy consumption/intensity2 Tri*M • Switch to 100% electricity from renewables accomplished mn MWh 67.3 72.7 73.4 12.8 13.3 • Eco Rating: Successful launch of industrywide in
Slide 18: Germany Review 2021
Germany Review 2021
Slide 19: Germany 22nd consecutive quarter of EBITDA growth
Germany 22nd consecutive quarter of EBITDA growth Revenues (as reported) Adj. EBITDA AL (as reported) € mn € mn +0.9% +3.6% 5,942 5,994 2,305 2,388 Q1/21 Q1/22 Q1/21 Q1/22 Revenue growth (organic) Q1/22 growth rate impacted by various non- Adj. EBITDA AL (organic) % yoy recurring factors, including
Slide 20: Germany service revenues: mobile growing, fixed impacted by one-offs
Germany service revenues: mobile growing, fixed impacted by one-offs Total service revenue growth (organic)1 Public sector one-timer Mobile service revenue growth (organic) % yoy 0.6pp, lockdown boost 0.5pp % yoy 2.1% 2.3% 2.5% 1.7% 1.8% 2.0% 2.0% 1.6% 0.6% Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 -0.8% Q1/21
Slide 21: Germany FTTH on track with buildout and monetization
Germany FTTH on track with buildout and monetization Progress with FTTH buildout Progress with monetization Homes passed, mn Share of ≥ 100 Mbps contracts Retail broadband ARPA2 % of broadband base €/month 33.0 33.3 34.2 32.5 New Collaborations 25.0 17.6 ~5.4 Own 3.4 10.0 buildout1 2019 2020 2021 20
Slide 22: Germany ongoing strong execution and digitization
Germany ongoing strong execution and digitization Service Digitization Customer satisfaction First contact resolution App penetration E-sales share1 TRI*M % +5% % % 52 55 66 24 25 69% 69% 43 56 61% 19 42 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 Employee satisfaction Customer compl
Slide 23: Germany consistent growth
Germany consistent growth Total service revenue Adj. EBITDA AL CMD: 2.5–3.0% % growth yoy, organic % growth yoy, organic CAGR 2020–2024 3.7 2.8 2.4 1.8 1.7 1.5 0.8 0.7 0.6 0.1 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 • 2021 positively impacted by non-recurring public sector revenues • 2022
Slide 24: Other segments Review 2021
Other segments Review 2021
Slide 25: T-Mobile US consistent growth leader
T-Mobile US consistent growth leader Key opportunities Service revenue (US GAAP)1 Customer growth % growth yoy, organic Postpaid net adds in mn • SMRA 8.3% • B2B 6.1% 6.3% 6.6% 5.2% • Home internet 2017 2.8 3.6 • Sprint Integration 2017 2018 2019 2020 2021 2018 3.1 4.5 Key advantages Adj. EBITDA (US
Slide 26: Europe fastest growing large European telco
Europe fastest growing large European telco FTTH (1 Gbps)1 Total service revenue growth Digitization Organic, % • 1.4 mn additional homes passed in 2021 • App penetration 64% • 7 mn homes YE 21 • Truck Rolls reduced by 200k in 2021 1.8% 1.9% 2.0% leading to a significant CO2 reduction. 0.4% 0.7% 201
Slide 27: Europe 17th consecutive quarter of organic EBITDA growth
Europe 17th consecutive quarter of organic EBITDA growth Revenues (Reported) Adj. EBITDA AL (Reported) € mn € mn -0.9% +3.2% 2,729 2,704 946 976 decline driven by sale of Romania fixed Q1/21 Q1/22 Q1/21 Q1/22 Revenues Adj. EBITDA AL % growth yoy, organic % growth yoy, organic 6.9% 6.9% 4.2% 5.3% 5.4
Slide 28: GD/Towers strong growth
GD/Towers strong growth Total sites Austria Recurring rental revenues '000 DFMG € mn 39.5 40.5 +0.9% 7.0 (organic +7.0%) 7.0 253 256 32.5 33.51 Q1/21 Q1/22 Q1/21 Q1/22 Opex AL per site Adj. EBITDA +2.2% € ‘000 € mn (organic +8.0%) 3.0 2.8 224 229 EBITDA AL: +2.4% 169 173 (organic +10.2%) Q1/21 Q1/22
Slide 29: Systems Solutions turnaround continues
Systems Solutions turnaround continues Revenue drivers Revenue Transformation drivers % growth yoy, organic IDC savings € bn Public Cloud +19%1 1.1% 0,39 Digital Solutions +14%1 2021 0,06 Ongoing legacy decline (MIS -14%1 ) -1.0% -1.1% 2020 0,11 -2.1% MIS now down to 32% of TSI revenues vs.
Slide 30: Systems Solutions recovery as expected
Systems Solutions recovery as expected Order entry (LTM) Revenues Adj. EBITDA AL € bn € mn € mn -4.1% -1.9% +17.7% 4.6 4.4 1,015 996 73 62 Q1/21 Q1/22 Q1/21 Q1/22 Q1/21 Q1/22 Revenues Adj. EBITDA AL % growth yoy, organic % growth yoy, organic 18.1% • Strong growth in Public Cloud and Digital 16.5% S
Slide 31: Outlook
Outlook
Slide 32: Inflation exposure challenges being addressed
Inflation exposure challenges being addressed € bn in 2021 Group as % of Rev. Mitigations • US: 2/3 secured via PPAs • GER: Comprehensive multi-year hedging and removal of renewable energy Energy costs 1.5 1.4% surcharge create stable outlook for costs • Scope to reduce volumes, establish PPAs Perso
Slide 33: Guidance 2022 outlook improved
Guidance 2022 outlook improved TM US DT Ex US TM US DT Ex US Guidance update reflects new Core EBITDA AL Adj. Adj. EBITDA AL guidance of T-Mobile US € bn € bn 36.5 ~36.5 >36.6 33.7 ~35.5 >35.6 • TM US adj. Core EBITDA AL 22.7 22.3 >22.4 included at mid-point of US$ 19.9 21.3 >21.4 25.8bn – 26.2bn US
Slide 34: Q1 2022 main takeaways
Q1 2022 main takeaways Adj. EPS (CMD target 2024) € /share >1.75 • TM US: strong merger execution, EBITDA and customer growth, 1.22 guidance raised • Ex US: 6% organic EBITDA AL growth; Germany with 22 and EU with 17 successive quarters of organic EBITDA AL growth 2021 2024e • Dip in German fixed li
Slide 35: Further questions please contact the IR department
Further questions please contact the IR department Investor Relations Contact details Phone +49 228 181 – 8 88 80 E-Mail investor.relations@telekom.de Contact details for all IR representatives: www.telekom.com/ircontacts IR Webpage IR Twitter Account IR YouTube Channel www.telekom.com/investors www