Slide 1: Q1/12 – Results Presentation
Q1/12 – Results Presentation. For smartphone and tablet users: just scan the Deutsche Telekom. QR-code and download this presentation May 10, 2012 1
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
Slide 3: Agenda
Agenda. Deutsche Telekom Results Presentation. Timotheus Höttges CFO 3
Slide 4: Q1 2012 Results
Q1 2012 Results. Life’s for Sharing 2) nas
Slide 5: Q1 2012: a solid quarter
Q1 2012: a solid quarter. Solid 1st quarter, full year guidance re-iterated Group revenue of €14.4 billion (-1.1%) – organically (-1.7%) improved versus revenue trends in 2011 Group Adj. EBITDA with €4.5 billion – stable compared to last year FCF with € 1.1 billion on last year’s level, net
Slide 6: Q1/2012 Key financials: improved revenue trends, stable adj. EBITDA, free cash flow and capex
Q1/2012 Key financials: improved revenue trends, stable adj. EBITDA, free cash flow and capex. € million Q1/11 Q1/12 change in % Revenue 14,597 14,432 -1% Adj. EBITDA 4,480 4,477 0% Adj. net profit 701 581 -17% Including € 464 million of early Net profit 480 238 -50% retirement provision due to diff
Slide 7: Q1/12 Overview
Q1/12 Overview. Revenue (€ million) Adj. EBITDA (€ million) -1.1% -0.1% 14,597 86 14,432 4,480 14 4,477 -251 -17 Q1/11 F/X Organic Q1/12 Q1/11 F/X Organic Q1/12 Revenue Q1/11 vs. Q1/12 (€ million) Adj. EBITDA Q1/11 vs. Q1/12 (€ million) 5,794 Germany 2,350 Germany 2,302 5,658 USA 871 USA 3,770 983 3
Slide 8: Germany: better revenue trends and further improved EBITDA margin
Germany: better revenue trends and further improved EBITDA margin. Germany revenues (€ million) Adj. EBITDA (€ million) and margin (in %) Mobile Core fixed Wholesale services Others -2.0% -2.3% 2,350 2,407 2,450 2,302 2,267 5,794 5,789 5,810 5,808 5,658 42.2 41.6 40.5 40.7 38.8 1,857 1,871 1,898 1,9
Slide 9: Germany – Mobile: continuous strong smartphone and mobile data development
Germany – Mobile: continuous strong smartphone and mobile data development. Mobile service revenue (€ million) Mobile data revenue (€ million) and as % of ARPU -1.8% +20.0% 440 462 385 408 411 28% 1,758 23% 24% 23% 25% 1,691 1,707 1,728 1,660 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/
Slide 10: Germany – mobile service revenues: measures
Germany – mobile service revenues: measures. Mobile service revenues Q1/11 vs. Q1/12 Business customer mobile service revenues -1.5% -1.8% Decline in prices only partially compensated by growth in 1,691 1,660 customer base 87 9 Retail customer mobile service revenues -2% driven by: 77 Migrat
Slide 11: Germany – fixed: strong customer trends
Germany – fixed: strong customer trends. Broadband access lines (million) and market share1 Broadband rollout (as % of access lines) 45.8% 45.7% 45.5% 45.3% 45.1% Q1/11 Q1/12 26.6 26.8 27.1 27.4 82% 26.3 3.1 3.2 3.3 3.6 3.8 53% 56% Market share 50% 11.3 11.3 11.3 11.3 11.3 Cable 31% 36% DSL competit
Slide 12: US: +8% adj. EBITDA and +187k customer growth
US: +8% adj. EBITDA and +187k customer growth. Service revenues (US$ million) Net adds (‘000) 126 187 -5.4% Total net adds 4,556 4,543 4,525 4,413 4,309 -99 -50 -526 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Branded Contract -574 -536 -389 -706 -510 Branded Prepaid -82 -71 254 220 249 Q1/11 Q2/11 Q3/11 Q4/11 Q1
Slide 13: US: Challenger strategy execution progressing well
US: Challenger strategy execution progressing well. Mission: Making Amazing 4G Services Affordable Challenger Amazing 4G Value Multi-Segment Trusted Brand Business Services Leader Player Model Key Refarming Brand relaunch Distribution push B2B Invest Reinvent v2 Programs LTE in 2013 MV
Slide 14: Europe: segment-wide performance improvement program leads to almost stabilized revenue and adj. EBITDA
Europe: successful segment-wide performance improvement program leads to almost stabilized revenue and adj. EBITDA. Organic revenue development Organic adj. EBITDA development -0.7% -2.2% 3,672 97 3,575 73 3,648 1,226 53 1,173 26 1,199 Q1/11 change Q1/12 f/x Q1/12 Q1/11 change Q1/12 f/x Q1/12 report
Slide 15: Europe – integrated markets
Europe – integrated markets. Revenue Greece: mn EUR mn HRK bn HUF mn EUR Mobile: Positive development in Service Revenue. Driven by higher -5% -5% +4% +2% subscriber base and revenue initiatives especially in consumer segment. 863 819 1,894 1,806 95.8 99.3 202 206 Fixed line: Revenues down by -8
Slide 16: Europe – mobile centric
Europe – mobile centric. Revenue Poland: mn PL mn EUR mn CZK mn EUR Figures in EUR impacted by F/X losses due to weak PLN. +1% +1% -2% -1% Underlying revenue (ex. MTR cut and F/X) +3.0% due to device revenues (partly due to higher smartphone share) 1,736 1,747 418 421 6,537 6,397 229 227 Under
Slide 17: Systems Solutions: Increase in external revenue with improving profitability
Systems Solutions: Increase in external revenue with improving profitability. External Revenue (€ million) Revenue (€ million) External revenue up 0.6% to €1,625mn due to successful closed deals in 2010 and 2011 and increasing revenues with cloud computing +0.6% -0.7% Revenue decrease of 0.7%yoy
Slide 18: Free cash flow: solid start into the year - guidance confirmed
Free cash flow: solid start into the year - guidance confirmed. Free cash flow Q1/11 vs. Q1/12 (€ million) Free cash flow improved by 5.7% to €1.1 billion +5.7% Improvement in underlying net cash generated from operations predominately due to: 130 Less tax payments -9 1,122 1,061 -60 Less in
Slide 19: Net income development Q1/12: impacted by provision for early retirement and depreciation due to US
Net income development Q1/12: impacted by provision for early retirement and depreciation due to US. Net income Q1/11 over Q1/12 (in € million) Financial result and result attributable to minorities benefit from sale of Telekom Serbia 639 64 Taxes benefit from higher restructuring 135 118 charge
Slide 20: Balance sheet ratios: improved net debt over EBITDA ratio and gearing in Q1
Balance sheet ratios: improved net debt over EBITDA ratio and gearing in Q1. in € billion 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 Balance sheet total 123.2 123.1 124.6 122.5 120.5 Shareholders’ equity 42.7 39.3 40.7 39.9 39.8 Net debt 41.8 43.3 43.4 40.1 38.6 Net debt/adj. EBITDA1 2.2
Slide 21: Q&A – Please press "*1" to ask a question
Q&A – Please press “*1” to ask a question. Timotheus Höttges CFO For remaining questions please contact the IR department after the call. 21
Slide 22: Investor Relations contact
For further questions please contact the IR department: Investor Relations, Bonn office Investor Relations, New York office Phone +49 228 181 - 8 88 80 Phone +1 212 424 2959 Fax +49 228 181 - 8 88 99 Phone +1 877 DT SHARE (toll-free) E-Mail investor.relations@telekom.de Fax +1 212 424 2977 E-Mail in