Deutsche Telekom AG · XETR:DTE

Deutsche Telekom — Merger or Acquisition (April 2018)

22 slides from Deutsche Telekom's merger presentation, Apr 29, 2018

  1. Slide 1: Supercharging U.S. growth & Value Creation

    Deutsche Telekom Supercharging U.S. growth & Value Creation Leading European Telco Unique Combination The supercharged of scale and growth European un-Carrier Convergence Leader

  2. 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, de

  3. Slide 3: Highly attractive transaction…

    Highly attractive transaction… Unique value creation Benefitting U.S. consumers, Governance Designed opportunity for Attractive Robust Capital investments and job for Efficient Deutsche Telekom Transaction Terms Structure creation Integration Shareholders  U.S. market highly attractive  Stock-for-

  4. Slide 4: …further strengthening DT's leading transatlantic platform

    …further strengthening Dt’s LeaDinG transatLantic PLATFORM Strong presence in the U.S. and Europe… …With Significant Value Creation Market Growth +2.0%1 +1.8%2 2017 vs 2016  Leading positions in the two strongest economies in Western Hemisphere  ~90% of revenues in AAA T-Mobile US + Sprint (PF) De

  5. Slide 5: Key Transaction terms

    The Transaction Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK Key Transaction terms  Stock-for-stock transaction at fixed exchange ratio 0.10256x1, New T-Mobile US Ownership Structure no cash consideration Transaction Highlights  DT consolidation and control through Sof

  6. Slide 6: U.S. Telco Market: Growth & Value Creation Potential

    THE TRANSACTION Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK U.S. TElco MARKEt: Growth & Value Creation Potential ATTRACTIVE THE LARGEST GLOBAL LARGEST GLOBAL TELCO ATTRACTIVE REGULATORY INNOVATION TELCO MARKET “Profit PooL” GROWTH FRAMEWORK $509 bn 4% De facto Market Si

  7. Slide 7: Creating robust competition in the 5G era

    THE TRANSACTION Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK CREATING ROBUST COMPETITION IN THE 5G ERA 1 Unprecedented nationwide 5g network 2 SUPERCHARGE UN-CARRIER STRATEGY AT PIVOTAL TIME 3 JOB CREATOR FROM DAY ONE UNLOCKING ECONOMIC VALUE  Unprecedented capacity, sp

  8. Slide 8: New T-Mobile US has the Breadth & Depth to Create the First Nationwide 5G Network

    THE TRANSACTION Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK New T-Mobile US has the Breadth & Depth to Create the First Nationwide 5G Network New T-Mobile US is the only Company Available spectrum for 5G Capable of Delivering Nationwide 5G in Critical Early Stage of Inn

  9. Slide 9: Superior Value Creation Through Cost Synergies

    THE TRANSACTION Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK superior Value Creation Through Cost Synergies Run-Rate Synergies Cost to Achieve NPV of Synergies Integration ($ bn, pre-tax) ($ bn) ($ bn)1 Years (Net of Costs to Achieve) Network Site Decommissioning, Cost t

  10. Slide 10: Proven Track Record: Synergy Realization at MetroPCS

    THE TRANSACTION Value Creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK Proven Track Record: Synergy Realization at MetroPCS Key highlights and proof points Run-Rate Savings NPV of Synergies Value Creation  More: delivered $3 bn more (+40%) synergies than originally announced $1.2

  11. Slide 11: The Un-Carrier team in charge

    THE TRANSACTION Value creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK the un-carrier team in charge New T-Mobile US Board New T-Mobile US Management Chairman 9 members nominated by DT CEO President & COO Tim Hoettges (2 Independents) John Legere Mike Sievert Management positions

  12. Slide 12: Robust new T-Mobile US capital structure

    THE TRANSACTION Value creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK Robust new T-Mobile US capital structure RAPID De-Levering Commitment to Balanced debt Parental funding COMMITED DEAL Through Organic achieve Investment structure phased out FINANCING Growth & Synergies Grade r

  13. Slide 13: Impact on Deutsche Telekom leverage

    THE TRANSACTION Value creation Governance FINANCING DT – Transatlantic Leadership OUTLOOK Impact on Deutsche Telekom leverage onLY a short DeParture froM our “coMfort Zone” Phasing out parental funding Deutsche Telekom Group Net Debt/Adj. EBITDA (x) Deutsche Telekom Parental Funding to T-Mobile US (

  14. Slide 14: We Lead on both sides of the Atlantic

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK We Lead on both sides of the atlantic Leading European Telco The supercharged un-Carrier European Convergence Leader  Superior value creation  #1 in 6 EU countries incl. Germany  Convergence leader  Unique

  15. Slide 15: Superior Growth Profile of our transatlantic platform…

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK Superior Growth Profile of our transatlantic PLatforM… REVENUE ADJUSTED EBITDA FREE CASH FLOW 2014-17 CAGR (%) 2014-17 CAGR (%) 2014-17 CAGR (%) 10% 8% 6% 1% 1% 0% Peers Peers Peers Note: Peers represent median

  16. Slide 16: …Generating superior returns for our shareholders

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK …GeneratinG superior returns for our shareholders Deutsche Telekom Total Shareholder Return Performance vs. Peers since MetroPCS Transaction (May 1, 2013) Indexed to 100 260 Deutsche Telekom Euro STOXX Telecomm

  17. Slide 17: Now we further strengthen our unique portfolio…

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK now we further strenGthen our unique PortfoLio… Reported Revenue 2017 1 € bn Innovation U.S. Co-Parent with Softbank 131 & 5G Leadership 103 102 Sprint 2 27 52 46 3 41 Deutsche 75 Telekom Portfolio Deutsche Tel

  18. Slide 18: …via value creation from supercharging the Un-Carrier…

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK …via value creation from supercharging the un-carrier… Supercharging the Un-Carrier European Convergence Leader Returning to Growth Un-Carrier 1.0 – 12.0 Best Customer Best Customer 5G SynergIes leadership Netw

  19. Slide 19: …boosting Deutsche Telekom's financial profile

    THE TRANSACTION Value creation Governance Financing DT – Transatlantic Leadership OUTLOOK …boostinG Deutsche teLekoM’s financial profile Accelerated T-Mobile US boostinG Deutsche teLekoM’s Supercharging the Un-Carrier Free cash flow growth financial profile T-Mobile US Free Cash Flow 1 $ bn EPS accr

  20. Slide 20: Transaction Timeline Until Closing

    Transaction Timeline Until Closing Signing of BCA1 / Regulatory Clearance / Announcement Closing Capital Markets Day April 2018 May 2018 – July 2018 Up to Q1 2019 1st half 2019  Antitrust and regulatory filings with DoJ and FCC  Conduct of antitrust and regulatory approval processes with DoJ and F

  21. Slide 21: Conclusion

    Conclusion  1 Unique Value Creation Opportunity for Deutsche Telekom Shareholders Leading European Telco 2 Attractive Transaction Terms  3  Benefitting U.S. Consumers, Investments and Job Creation unique Combination 4 Governance Designed for Efficient Integration  of scale and growth The Superch

  22. Slide 22: Q&A

    Q&A

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