Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Investor Day (March 2010)
24 slides from Deutsche Telekom's investor day presentation, Mar 17, 2010
Slide 1: Deutsche Telekom Investor Day. On Our Way To A New DT
Deutsche Telekom Investor Day. On Our Way To A New DT – “Fix – Transform – Innovate” March 17, 2010 René Obermann 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: Guidance 2010 confirmed
Guidance 20101 confirmed. Guidance assumes constant currencies and no further significant economic deterioration (Basis 2009 average exchange rates: 1€ = 1.39US$) Adj. Group EBITDA Around €20 billion Free Cash Flow Around €6.2 billion 1 incl. TM UK for the full year 2010 3
Slide 4: DT Group Strategy
DT Group Strategy Strategy achievements 2007 - 2009 Our strategy is driven by our core beliefs DT’s strategy is evolving: “Fix – Transform – Innovate” 4
Slide 5: Strategy was "Focus, Fix & Grow": Key achievements since 2007
Strategy was “Focus, Fix & Grow”: Key achievements since 2007. German fixed business: Clear No.1 in Growth: 7% revenue and 10% EBITDA growth German broadband with 45% net adds share, between 2007 and 2009 >1 mn IPTV packages sold Improve Successful intra-market consolidation in NL German mob
Slide 6: DT Group Strategy
DT Group Strategy Strategy achievements 2007 - 2009 Our strategy is driven by our core beliefs DT’s strategy is evolving: “Fix – Transform – Innovate” 6
Slide 7: Our strategy is driven by our core beliefs on the future of the telecoms industry
Our strategy is driven by our core beliefs on the future of the telecoms industry. 1 Infrastructure remains a key value driver in light of continued traffic growth Network 2 NGN networks and IT infrastructure will be essential to increase efficiencies and address new strong traffic growth realit
Slide 8: Core Beliefs 1&2 – Infrastructure: NGN and NG IT critical for traffic growth
Core Beliefs 1&2 – Infrastructure: NGN and NG IT will be critical success factors for the strong traffic growth. Continued strong traffic growth… …requires comprehensive response Global internet traffic forecast1 Broadband access in wireless and fixed >32 HSPA+/ LTE Exabytes/month 35 Internet Vi
Slide 9: Core Belief 3 – Growth Segments: Overall addressable market is growing
Core Belief 3 – Growth Segments: Overall addressable market is growing. Total Market Revenue in DT Footprint (DE, EU, SEE, US)1 CAGR 502 € bn 2.5% 444 139 3.5% IT-Services2 117 10.0% 34 Consumer IP Services3 21 Mobile4 25 19.5% 62 Data Wireline5 39 6.0% 52 Mobile Voice + 159 -1.7% Messaging 146 Core
Slide 10: Future pockets of growth mainly in Mobile Data and Consumer IP Services
Future pockets of growth mainly in Mobile Data and Consumer IP Services. Size of bubble represents Wireline Wireless Consumer IP Business absolute market growth Voice access Internet Voice Data Services customers3 ( 2009 to 2014) + Voice traffic (incl. IPTV) + Messaging Access2 (excl. Search Advert
Slide 11: Core Belief 5 – Dynamic Cloud Computing: Significant growth potential
Core Belief 5 – Dynamic Cloud Computing: Significant growth potential. Cloud Computing Strategies Cloud Computing Characteristics Type of service: Provider (examples): Customers are using IT-Services when they need it (dynamic), how much they need it (scalable), Private Clouds and to pay just
Slide 12: Core Belief 6 – Intelligent Networks: Growth opportunities in transforming industries
Core Belief 6 – Intelligent Networks: Growth opportunities in transforming industries. Classical Telco Transforming Opportunities Ambition Business industries for DT Level 2015 ICT enabled networks for E-Metering and balancing Energy of supply and demand in a decentralized energy Core generation env
Slide 13: Core Beliefs 3 to 6 – Aim to almost double revenues from growth areas until 2015
Core Beliefs 3 to 6 – Growth Opportunities: Aim to almost double revenues from growth areas until 2015 DT’s Growth Areas 2009 Ambition Level 2015 CAGR 09-15 Revenue in € bn. Revenue in € bn. Mobile Internet 4 ≈10 +17% Connected Home 5 ≈7 +6% Double & triple play, Home Gateway and Communication Suite
Slide 14: Core Belief 7 – Local Strength: Strong local market positions drive profitability
Core Belief 7 – Local Strength: Strong local market positions are essential to drive profitability. EBITDA vs. Market Share Regression There is a strong correlation between market 60% share and profitability Market leaders in key European wireless markets TI TEF Spain VOD It enjoy an average 37%
Slide 15: DT Group Strategy
DT Group Strategy Strategy achievements 2007 - 2009 Our strategy is driven by our core beliefs DT’s strategy is evolving: “Fix – Transform – Innovate” 15
Slide 16: Our strategy is evolving
Our strategy is evolving. Innovate Grow Transform Fix Fix 2010 to 2015 Focus 2007 to 2009 16
Slide 17: "Fix – Transform – Innovate" will be implemented through five initiatives
“Fix – Transform – Innovate” will be implemented through five initiatives. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit societ
Slide 18: Improve performance of mobile-centric assets
Improve performance of mobile-centric assets. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit society ICT solutions Regain attr
Slide 19: Leverage one company in integrated assets
Leverage one company in integrated assets. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit society ICT solutions Synergies from
Slide 20: Build networks and processes for the gigabit society
Build networks and processes for the gigabit society. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit society ICT solutions Sup
Slide 21: Connected life across all screens
Connected life across all screens. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit society ICT solutions Grow in data access an
Slide 22: Connected work with unique ICT solutions
Connected work with unique ICT solutions. Fix Transform Innovate Improve perfor- Leverage Build networks and Connected life Connected work mance of mobile- one company in processes for the across all screens with unique centric assets integrated assets gigabit society ICT solutions Intelligent Net
Slide 23: On our way to a new DT – What is going to change
On our way to a new DT – What is going to change. Moving from an “access only” business model towards “access plus” Exploit pockets of growth in mobile internet, non-access business, ICT opportunities like Cloud Services and intelligent networks Moving towards integration of fixed and mobile i
Slide 24: DT group ambition level 2012
DT group ambition level 2012. Ambition Level 2012 Group wide TV customers 5.5 – 6 million Group wide mobile customers > 140 million1 Group wide fixed broadband retail customers > 18 million > €6bn mobile internet revenues Revenues German revenues stabilized Save for Service 2010-2012 €4.2bn savings,