Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Q1-Q3 2005 Earnings Presentation

14 slides from Deutsche Telekom's earnings presentation, Nov 9, 2005

  1. Slide 1: Q1-Q3 2005 Analysts meeting

    Q1-Q3 2005 Analysts meeting. Deutsche Telekom. November 9, 2005. Kai-Uwe Ricke

  2. Slide 2: Disclaimer

    Disclaimer. This presentation contains forward-looking statements that reflect the current views of the Deutsche Telekom management with respect to future events. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed on

  3. Slide 3: Investing to accelerate growth

    Deutsche Telekom. Investing to accelerate growth. Kai-Uwe Ricke CEO

  4. Slide 4: Q1-Q3 2005. Operational performance on track

    Q1-Q3 2005. Operational performance on track. Revenues (€ million) Adj. EBITDA (€ million) 42,620 +3.6% 44,167 15,630 +5.0% 14,891 EBT (adjusted) (€ million) Net income (adjusted) (€ million) +16.2% 5,671 +11.4% 3,414 4,882 3,065 Q1-Q3 2004 Q1-Q3 2005 Q1-Q3 2005 Analysts meeting Investor Relations N

  5. Slide 5: Track record. Strong financial development since 2002

    Track record. Strong financial development since 20021. Net Debt Share of revenue from mobile (%) 61.1 44.43 50.72 41.13 39.62 34.2 2002 2003 FY 2004 2002 2003 FY 2004 Adjusted EBITDA (billions of €) Earnings/loss per share (€) 19.62 20.7-21.02 1.1 18.62 0.30 16.3 -5.86 2002 2003 2004 2005e 2002 200

  6. Slide 6: Deutsche Telekom strategy. Strict guidelines rule our actions

    Deutsche Telekom strategy. Strict guidelines rule our actions. Attractive „ Minimum of €0.62 dividend „ Dependent on profitability development Profitable „ Target: 5% p.a. revenue growth growth „ Target: Adj. EBITDA of €21.7-22.2 bn in 2007 Strong „ Strengthen existing presence footprint „ ROCE > 8.

  7. Slide 7: Excellence program - Business Objectives

    Excellence program - Business Objectives. 5% CAGR revenue growth & up to €1.5bn more adjusted EBITDA by ‘07. Key Commitments 1 Secure fixed-line core business At least stabilize market share in call minutes BBFN 2 “Conquer the home” 1 million triple-play customers by 2007 3 Grow core wireless busine

  8. Slide 8: A two-year plan. To accelerate revenue growth to 5% CAGR

    A two-year plan. To accelerate revenue growth to 5% CAGR. 65.2 – 66.2 Group + 3.1 – 3.5 62.1 – 62.7 „ BBFN + 0.2 – 0.3 Group + 2.6 – 2.7 „ Mobile + 1.9 – 2.1 „ BBFN – 0.5 – 0.6 „ Systems + 0.7 – 0.8 59.5-60.0 „ Mobile + 1.6 – 2.0 „ Systems + 0.6 – 0.7 2005 2006 2007 Q1-Q3 2005 Analysts meeting Inves

  9. Slide 9: A two-year plan. Invest in the market to grow adj. EBITDA by 1.5 bn

    A two-year plan. Invest in the market to grow adj. EBITDA by 1.5 bn in ‘07. 21.7– 22.2 20.7-21.0 + 20.2 – 20.7 - + Incremental EBITDA from revenue growth Incremental Incremental market invest EBITDA from revenue Total growth € 1.2 bn 2005 2006 2007 Q1-Q3 2005 Analysts meeting Investor Relations Nove

  10. Slide 10: A two-year plan. More aggressive market investments

    A two-year plan. More aggressive market investments EBITDA 2006 investment „ FTTC broadband network Germany „ Bundled tariffs (flat, XXL mobile, etc.) BBFN 0.4 billion „ Introduction of Triple play „ Boost DSL business „ Launch Dual phone „ Customer growth „ Mobile broadband: HSDPA /further UMTS rol

  11. Slide 11: Personnel planning. Annual savings of €1.7 bn from 2009

    Personnel planning. Annual savings of € 1 .7 bn from 2009. Headcount reduction 2006-2008 „ Total cost of €3.3bn over 3 years „ Affect employees and civil servants 32,000 7,000 25,000 Redundancies New hires/other Net reduction Ensure long-term profitability Q1-Q3 2005 Analysts meeting Investor Relati

  12. Slide 12: Targets 2006/2007. Invest to drive strong revenue development

    Targets 2006/2007. Invest to drive strong revenue development in all divisions. Revenue Revenue Adj. EBITDA Adj. EBITDA 2006 2007 2006 2007 Broadband/Fixed Network 25.4 – 25.8 25.6 – 26.1 9.4 – 9.6 9.8 – 10.2 Mobile 30.9 – 31.3 32.8 – 33.4 10.0 – 10.2 10.8 – 11.1 Business Customers 13.4 – 13.6 14.1

  13. Slide 13: T-Mobile USA. Investing in further spectrum in the US

    T-Mobile USA. Investing in further spectrum in the US. „ Auction design has not been finalized „ Spectrum not tied to technology „ Auction expected to take place in June/July 2006 Well positioned for AWS auction with variety of options with a disciplined approach ! Q1-Q3 2005 Analysts meeting Invest

  14. Slide 14: Outlook 2005. We reconfirm our guidance

    Outlook 2005. We reconfirm our guidance. „ Revenue €59.5bn – €60.0bn „ Adj. EBITDA expected at € 20.7 to 21.0 billion „ Capex at € 7.5 to 8 billion* „ Free cash flow expected to be € 7.5 to 8 billion „ No material change in net debt to adj. EBITDA ratio expected in 2005 „ Dividend dependent on profi

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