Deutsche Telekom AG · XETR:DTE

Deutsche Telekom — Morgan Stanley TMT Conference 2007

16 slides from Deutsche Telekom's conference presentation, Nov 16, 2007

  1. Slide 1: Deutsche Telekom. Morgan Stanley TMT Conference

    Deutsche Telekom. Morgan Stanley TMT Conference. René Obermann, CEO November 16, 2007, Barcelona 1

  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. They include statements as to market potential, the guidance statements as well as our dividend outlook. They are generally identified by the

  3. Slide 3: Q3 2007 Highlights

    Q3 2007. Highlights. 2 nn

  4. Slide 4: Q1-Q3/07 Highlights: Delivering on our strategy

    Q1-Q3/07 Highlights: Delivering on our strategy. ƒ Group revenue of €46.7 billion (+2.8%). International revenue +14.4% ƒ Adj. group EBITDA at €14.7 billion (-1.1%) – on track to achieve FY guidance ƒ Free cash flow of €5.8 billion (+52.4%) – FY guidance increased to €6.5 billion ƒ Net income of €1.

  5. Slide 5: Management update: Focus, fix and grow

    Management update: Focus, fix and grow. Build the ICT Improve com- Mobilize Grow abroad business petitiveness Internet and with mobile in Germany Web 2.0 trend With partner(s) Achievements: ƒ 3rd quarter DSL retail market share of net adds at 48%, reduced line losses (497k) ƒ Successful retention: 8

  6. Slide 6: Best DSL retail share in the last four quarters

    Best DSL retail share in the last four quarters. Domestic DSL retail net adds (000) and market share (%) ƒ Strong DSL retail share of 48% in Q3/07 48 % 40% 42% 42 % ƒ Good start for Triple Play products – 40 – 45 % 572 almost 50,000 customers connected 563 480 as of Q3 373 ∅2006 18% ƒ Line losses at

  7. Slide 7: Update on service: Improving metrics

    Update on service: Improving metrics. Availability (all/E20 in 20%) 100% strike all > 65% 80% ƒ Most quality metrics strongly improved 60% E20 after the strike 40% ƒ Punctuality still below expectations 20% ƒ T-Service units are set up and show first 0% CW 14 15 16 17 18 19 20 21 22 23 25 26 27 28 2

  8. Slide 8: Continued growth in contract customers in Germany

    Continued growth in contract customers in Germany. Contract net adds T-Mobile Germany (in 000) 577 ƒ Contract net adds up almost 40% 414 ƒ Contract churn stable at 1.2% +39.4% ƒ Adj. EBITDA margin at 37.7% in Q3/07, up from 36.5% in Q2/07 Q1-Q3 2006 Q1-Q3 2007 ƒ Exclusive launch of iPhone in Germany

  9. Slide 9: Management update: Focus, fix and grow

    Management update: Focus, fix and grow. Build the ICT Improve Mobilize Grow abroad business competitiveness Internet and with mobile in Germany Web 2.0 trend With partner(s) Achievements: ƒ T-Mobile continues double-digit international revenue growth (14.3% yoy in Q1-Q3) and improves international a

  10. Slide 10: Grow abroad with mobile: T-Mobile USA: Delivering growth and profitability

    Grow abroad with mobile: T-Mobile USA: Delivering growth and profitability. Service revenues (US$ billion) 12.2 ƒ Total revenues (US$) up 12.8% in Q1-Q3/07 10.4 +17.3% ƒ Service revenues (US$) up 17.3% in Q1-Q3/07 ƒ Adj. EBITDA margin: 28.3% in Q1-Q3/07, up from 28.1% in Q1-Q3/06 Q1-Q3 2006 Q1-Q3 20

  11. Slide 11: Grow abroad with mobile: T-Mobile UK: Strong margin improvement

    Grow abroad with mobile: T-Mobile UK: Strong margin improvement. Service revenues (€ billion) 3.3 ƒ Total revenues up 8.3% in Q1-Q3/07 2.9 +11.8% ƒ Service revenues up 11.8% in Q1-Q3/07 ƒ Adj. EBITDA margin at T-Mobile UK up 4.2pp to 24.1% yoy in Q1-Q3, Q3/07 margin at 29.2% Q1-Q3 2006 Q1-Q3 2007 ƒ

  12. Slide 12: Management update: Focus, fix and grow

    Management update: Focus, fix and grow. Build the ICT Improve com- Mobilize Grow abroad business petitiveness Internet and with mobile in Germany Web 2.0 trend With partner(s) Achievements: ƒ Total data revenues €3.9 billion in Q1-Q3 2007, up 30.1% ƒ US data revenues €1.4 billion in Q1-Q3 2007, up 4

  13. Slide 13: Mobilize the Internet and Web 2.0 trends

    Mobilize the Internet and Web 2.0 trends. Europe USA web‘n‘walk users1 (in 000) Non-voice revenue myFaves users (in 000) Non-voice revenue excluding messaging excluding messaging (in € million) (in € million) +49% +41% +390% +43% 2,822 716 3,608 709 1,890 509 495 737 2006 YE Q1-Q3 07 Q1-Q3 06 Q1-Q3

  14. Slide 14: Management update: Focus, fix and grow

    Management update: Focus, fix and grow. Improve com- Mobilize Build the ICT Grow abroad petitiveness Internet and business with mobile in Germany Web 2.0 trend With partner(s) Achievements: ƒ New CEO Reinhard Clemens will join as of December 1st ƒ Second large outsourcing deal in the UK won this yea

  15. Slide 15: Outlook

    Outlook ƒ We are very confident in achieving our adj. EBITDA guidance for 2007 (around €19 billion) ƒ FCF for 2007 is expected to be ahead of our original FY 2007 guidance at around €6.5 billion ƒ For 2008 we expect adj. EBITDA and FCF to be around this year’s levels ƒ In the light of the strong bal

  16. Slide 16: Thank you for your attention!

    Thank you for your attention! 16

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