Slide 1: T-Mobile US Q3 2013
T - Mobile- T-Mobile US Q3 2013
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking” statements within the meaning of the U.S. federal securities laws. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any statements
Slide 3: Agenda
Agenda Financial results Operating highlights and key initiatives Q&A Braxton Carter, CFO John Legere, President and CEO 3
Slide 4: Operating highlights and key initiatives
Operating highlights and key initiatives John Legere President and CEO 4
Slide 5: Q3 2013 operating highlights
Q3 2013 operating highlights 5 More than 1.0 million net customer additions – 2nd quarter in a row Led US wireless industry with 643,000 branded postpaid phone net adds Continued low branded postpaid churn of 1.7%, down 60 bps YoY Un-carrier – successful execution of major strategic initiati
Slide 6: Sustained postpaid growth – improving quality
Sustained postpaid growth – improving quality 6 -492 688 648 Q3 2013 Q2 2013 Q3 2012 Branded postpaid nets thousand 648k branded postpaid net adds 643k branded postpaid phone net adds – Led industry for 2nd quarter in a row +64% YoY and +8% QoQ gross adds 1.137 million branded postpaid net add
Slide 7: Strong customer momentum across the board
Net adds Strong customer momentum across the board 7 -439 601 672 Q3 2013 Q2 2013 Q3 2012 Total branded Wholesale1 Total 287 452 351 Q3 2013 Q2 2013 Q3 2012 thousand Strong total branded growth Successful Un-carrier strategy Sustained growth in wholesale 344k MVNO, up 189% YoY, up 8% QoQ 35% p
Slide 8: 4G LTE rollout and modernization
Nationwide 4G LTE coverage 8 4G LTE rollout and modernization 203M 4G LTE POPs in 254 metro areas Met 200M POPs goal one quarter early Live 4G LTE in 94 of Top 100 metro areas Fastest network: 10 of Top 20 metro areas1 Solid 4G HSPA+ network 229 million POPs on AWS spectrum 203 million P
Slide 9: MetroPCS integration ahead of plan
MetroPCS integration ahead of plan 9 4G LTE spectrum covering approximately 15% of MetroPCS’ network POPs will be re-farmed by the end of 2013 MetroPCS customers w/ TMUS-compatible handsets: >1.5M 15 new markets with >1,300 distribution points by end of Q3 15 additional new markets will be l
Slide 10: Financial results
Financial results 10 Braxton Carter CFO
Slide 11: Adj. EBITDA margin up quarter-over-quarter
Note: All figures are pro forma combined results 5,1385,1225,383 Q3 2013 Q2 2013 Q3 2012 Adj. EBITDA margin up quarter-over-quarter 11 Total revenue ($ million) Service revenue ($ million) Adjusted EBITDA ($ million) 31% 25% 26% Adj. EBITDA margin 9% YoY growth in total revenues $1B of equipment s
Slide 12: Rapid migration to Simple Choice driving ARPU
Rapid migration to Simple Choice driving ARPU 12 ARPU decline from ongoing rapid take-up of Simple Choice/Value plans Ongoing conversion of Classic to Simple Choice/Value Plans offset by increased data attach Simple Choice/Value plans 61% of postpaid base vs. 50% in Q2 2013, 36% in Q1 2013, and
Slide 13: Strong cash position
394 2,362 2,365 Q3 2013 Q2 2013 Q4 2012 Strong cash position 13 Cash Capex ($ million) Ending cash ($ million) Simple FCF1 ($ million) Significant investment in network modernization Accelerated rollout of 4G LTE 203M POPs in 254 metro areas $4.5 billion cash capex in LTM Focus on FCF generati
Slide 14: Guidance for 2013
Guidance for 2013 14 2013 Outlook Guidance Adjusted EBITDA pro forma combined ($ billion)1 Cash capex pro forma combined ($ billion)1 Branded postpaid net adds (million) 5.2 – 5.4 4.2 – 4.4 1.6 – 1.8 Penetration of Simple Choice/Value plans in branded postpaid base 65% – 75% 1 Pro forma combined inc
Slide 15: Recap highlights
Recap highlights 15 Un-carrier 1.0, 2.0 & 3.0 – significant improvement in customer momentum – 643k branded postpaid phone net adds – leading the industry again in Q3 – 64% YoY and 8% QoQ increase in branded postpaid gross adds – 1.7% branded postpaid churn – down 60 bps YoY Nationwide 4G LTE fo