Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Investor Day (November 2012)

26 slides from Deutsche Telekom's investor day presentation, November 2012

  1. Slide 1: Deutsche Telekom Capital Markets Day 2012 Press Conference

    DEUTSCHE TELEKOM CAPITAL MARKETS DAY 2012 PRESS CONFERENCE RENÉ OBERMANN

  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: Safe Harbor Statement

    SAFE HARBOR STATEMENT. Additional Information and Where to Find It This document also relates to a proposed transaction between MetroPCS Communications, Inc. (“MetroPCS”) and Deutsche Telekom AG (“Deutsche Telekom”) in connection with T-Mobile USA, Inc. (“T-Mobile”). The proposed transaction will be

  4. Slide 4: Key Messages

    KEY MESSAGES. 1 Key objectives achieved against industry trend – 2012 guidance reiterated 2 Significant investments in Germany and the US 3 Agreement with Apple for T-Mobile US 4 Chance to return to modest growth by 2014 driven by  revenue stabilization in Germany in 2014  return to underlying

  5. Slide 5: Review 2010 – 2012

    REVIEW 2010 – 2012

  6. Slide 6: From Telco to Telco Plus

    FROM TELCO TO TELCO PLUS. Telco Telco Plus 2010 2012 2015  Strategy implementation on track  Industry situation  Finance strategy & 3 yr dividend plan  Telco Plus strategy and strategic executed objectives 2013 – 2015 6

  7. Slide 7: 2010 – 2012: Achievements

    2010 – 2012: ACHIEVEMENTS. Valuation increase €1.7 bn of DT’s “One Company” in Germany and stake – good operational development 3 major markets Improved position after AT&T deal €4.5 bn Save for Service savings FIX TRANSFORM break-up achieved one year ahead of plan Broadband share kept broadly stabl

  8. Slide 8: 2010 – 2012: TMUS Building Challenger Position

    2010 – 2012: TMUS BUILDING CHALLENGER POSITION. AT&T NETWORK VERIZON TOWER MetroPCS BREAK-UP MODERNIZATION SPECTRUM SWAP TRANSACTION COMBINATION  AWS spectrum and  $4 bn network  Enable more  $2.5 bn proceeds  Creating the leading $3 bn cash investment efficient network  Maintaining value carr

  9. Slide 9: Regulation: New Prospects for Higher Investment Levels

    REGULATION: NEW PROSPECTS FOR HIGHER INVESTMENT LEVELS. NEW EU REGULATORY POLICY PROPOSAL1 IMPLICATION FOR GERMANY  Reliable regulatory framework until 2020  ULL charges stable until 2020  No cost regulation for optical fiber/NGA networks if sufficient competition and non-discrimination Encouragi

  10. Slide 10: 2010 – 2012: Performance Towards Ambition Level

    2010 – 2012: PERFORMANCE TOWARDS AMBITION LEVEL. GROUP AMBITION LEVEL 2012 (COMMUNICATED IN 2010) GROUP WIDE TV CUSTOMERS 5.5 – 6.0 mn GROUP WIDE MOBILE CUSTOMERS >140 mn GROUP WIDE FIXED BROADBAND RETAIL CUSTOMERS >18 mn >€6 bn mobile internet revenues REVENUES German revenues stabilized SAVE FOR S

  11. Slide 11: Market & Trends

    MARKET & TRENDS

  12. Slide 12: We Invest for Long Term Growth

    WE INVEST FOR LONG TERM GROWTH. Telco Telco Plus 2010 2012 2015  Strategy implementation on track  Industry situation  Finance strategy & 3 yr dividend plan  Telco Plus strategy and strategic executed objectives 2013 – 2015 12

  13. Slide 13: Industry Situation and Major Trends

    INDUSTRY SITUATION AND MAJOR TRENDS. PRESSURES OPPORTUNITIES TOUGH ECONOMIC SATURATED MARKETS, IP TRANSFORMATION CHANGING REGULATION GROWTH MARKETS SITUATION CONTINUED PRICE PRESSURE Virtual PBX Efficient QoS Networks 13

  14. Slide 14: Market Projections

    MARKET PROJECTIONS. TELECOMMUNICATION INFORMATION & COMMUNICATIONS TECHNOLOGY € bn € bn 242 6312 217 31 3% Connected Home1 28 158 525 43 18% 84 Mobile Internet 18% Cloud Services & 82 Virtualized IT Traditional 146 -3% 473 communication Conventional 2% 127 443 ICT 2011 2015 2011 2015 p.a. Growth mar

  15. Slide 15: Guidance & Ambition Level 2015

    GUIDANCE & AMBITION LEVEL 2015

  16. Slide 16: Transformation of Revenue Mix

    TRANSFORMATION OF REVENUE MIX. DEUTSCHE TELEKOM GROWTH AREAS AND AMBITION 2015 REVENUE MIX DT GROUP MOBILE INTERNET ≈€10 bn 100% 24% CONNECTED HOME ≈€7 bn 40 – 45% ONLINE CONSUMER SERVICES ≈€2 bn T-SYSTEMS EXTERNAL (INCL. CLOUD) ≈€7 bn 76% 55 – 60% INTELLIGENT NETWORKS ≈€1 bn 20101 2015 Growth areas

  17. Slide 17: We Invest for Long Term Growth

    WE INVEST FOR LONG TERM GROWTH. Telco Telco Plus 2010 2012 2015  Strategy implementation on track  Industry situation  Finance strategy & 3 yr dividend plan  Telco Plus strategy and strategic executed objectives 2013 – 2015 17

  18. Slide 18: Deutsche Telekom Capital Markets Day 2012 Press Conference

    DEUTSCHE TELEKOM CAPITAL MARKETS DAY 2012 PRESS CONFERENCE TIMOTHEUS HÖTTGES

  19. Slide 19: Low Risk Portfolio

    LOW RISK PORTFOLIO. Risk Management MONITORING OF ECONOMIC ENVIRONMENT IMPROVED REFINANCING COSTS interest 5yrs yield D A NL -10% GR 5.9% -59% US RO UK 5.3% 3.5% PL SK CZ 1.5% - €0.4 bn SotP HU Share 85% HR 2010 2012e 2010 2012e WELL-BALANCED MATURITY PROFILE1 STRONG LIQUIDITY RESERVE POSITION1 € bn

  20. Slide 20: Investing into DT's Future – Capex and FCF Profile

    INVESTING INTO DT’S FUTURE – CAPEX AND FCF PROFILE. Financial Overview CAPEX PROFILE 2012 – 2015 Investing into INS € bn +1.2  Gross Capex FTTC/Vectoring: ≈€6 bn 9.8 9.5  Capex Germany: 8.3  2013: ≈€3.4 bn  2014: ≈€4.1 bn  2015: ≈€4.3 bn 2012e 2013e 2015e Network modernization & PCS integration

  21. Slide 21: Integrated Network Strategy Germany

    INTEGRATED NETWORK STRATEGY GERMANY. 1 LTE rollout + 2 Fiber rollout  LTE: 85% coverage in 2016  Fiber: around 65% coverage + in 2016 with an option towards 80% (subject to 3 Vectoring public co-funding) + Hybrid Devices LTE DSL 4 Hybrid access 21

  22. Slide 22: Network Modernization US + Apple Partnership

    NETWORK MODERNIZATION US + APPLE PARTNERSHIP. NETWORK MODERNIZATION PROGRESSING RAPIDLY APPLE PARTNERSHIP mn population 225 225 225 4G LTE 200 200 4G HSPA PCS 170 4G HSPA AWS  TMUS has entered into an 100 100 agreement with Apple to bring products to market together next year 0  TMUS 2013 financia

  23. Slide 23: T-Systems - Global Future Trends & Technologies

    T-SYSTEMS - GLOBAL FUTURE TRENDS & TECHNOLOGIES FROM DT’S PERSPECTIVE. GROWTH WITH GLOBAL TREND CLOUD1 BIG DATA MARKET FORECAST2 Turnover worldwide EUR 114 billion CAGR (IDC) 0 1 0 1 0 1 1 10 1 40 % 01 1 1 0 0 Market forecast 2016 1 0 0 0 0 1 00 1 1 1 0 worldwide (till 2017) 1.3 billion + 33% (per y

  24. Slide 24: 2010 – 2012: DT with Above Average Shareholder Returns

    2010 – 2012: DT WITH ABOVE AVERAGE SHAREHOLDER RETURNS. TSR1 EV/EBITDA2,3 5YR CDS (BPS)3 RATINGS3,4 SINCE 2010 2010 2012 2010 2012 2010 2012 37.3% 4.7x 4.8x 64 68 A- A- 13.5% 4.8x 4.7x 74 91 BBB+ BBB+ -21.6% 5.1x 3.8x 119 292 BBB BBB -27.0% 6.1x 4.7x 91 264 A- BBB -34.0% 5.3x 3.7x 46 124 A- A- -53.1

  25. Slide 25: Raise Value of Assets

    RAISE VALUE OF ASSETS. Portfolio Management ACHIEVEMENTS FUTURE PROJECTS 1 CLEAR FOCUS No M&A outside footprint Everything AT&T, Secure PTC Everywhere Spectrum, Invest in Germany and US/LTE expansion EU Ownership Towers, Metro PCS 2 VALUE CREATION FOR SHAREHOLDERS Strategic review EE DBU Small Strat

  26. Slide 26: Updated Finance Strategy to Embrace Transition to Growth

    UPDATED FINANCE STRATEGY TO EMBRACE TRANSITION TO GROWTH. EQUITY TELCO PLUS DEBT New Shareholder Undisputed access Remuneration policy COMPETE TRANSFORM INNOVATE to debt capital markets  Dividend1  Rating: A-/BBB  FY 2012: €0.70 VALUE CREATION  Net debt/adj. EBITDA:  FY 2013: €0.50 2-2.5x 1 EF

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