Deutsche Telekom AG · XETR:DTE

Deutsche Telekom — Webinar on financial accounting topics (January 2023)

21 slides from Deutsche Telekom's conference presentation, Jan 19, 2023

  1. Slide 1: Webinar on financial accounting topics

    Deutsche Telekom Webinar on financial accounting topics January 19, 2023 2PM CET, 1PM GMT, 8AM ET, 10PM JST

  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, dep

  3. Slide 3: Agenda

    Agenda Towers transaction – impact on DT 01 financials for FY 2022 US GAAP / IFRS Bridges for 02 TMUS for 9M 2022

  4. Slide 4: Towers transaction: Impact on DT financials for FY 2022

    Towers transaction Impact on DT financials for FY 2022 In July 2022 DT agreed to The following pages contribute GD Towers into a Closing is expected in provide a detailed view of new JV with DigitalBridge Q1 2023 the pro forma impacts on and Brookfield DT's key financials 4

  5. Slide 5: Impact of GD towers transaction - segment view

    Impact of GD towers transaction - segment view FY 2022e pro-forma impacts on adj. EBITDA AL (preliminary) Segment GD Segment GER DT ex US € bn € bn € bn + Austria: +0.1 Opex -0.7 0.7 0.7 -0.1 lease D&A -0.8 0.1 and interest -0.9 0.1 0.1 -0.7 + = 0.3 -0.8 Adj. Tower Impact Adj. Adj. Held for sale Adj

  6. Slide 6: Impact of GD tower transaction: Free cash flow & net debt

    Impact of GD tower transaction: Free cash flow & net debt FY 2022e pro-forma impacts (preliminary1) FCF AL +cash distribution from TowerCo for Pro-forma Net Debt & Leverage € bn the coming years € bn hfs effect (non-cash) +interest savings on cash proceeds -0.222 -0.133 0.1 -0.2 -0.7 -0.1 0.2 -1.5 0

  7. Slide 7: Impact of GD tower transaction on DT's P&L

    Impact of GD tower transaction on DT’s P&L FY 2022e pro-forma impacts (preliminary1) DT external view € bn Revenue Opex, EBITDA and EBITDA AL SALB D&A, Interest , Taxes w/o hfs and Net income effect of +0,1 w/o hfs effect of +0,1 w/o hfs 0.3 effect 0.1 of +0,1 0.2 -0.1 + expected positive 0.0 -0.3 -

  8. Slide 8: US GAAP / IFRS bridges for TMUS for 9M 2022

    US GAAP / IFRS bridges for TMUS for 9M 2022 DT’s reporting is impacted by The following pages provide various differences between detailed bridges for EBITDA AL, US GAAP and IFRS FCF AL, net debt, and net income 8

  9. Slide 9: Various differences in TMUS and DT EBITDA reporting

    Various differences in TMUS and DT EBITDA reporting Chart as shown in Q3/22 TMUS vs. DT EBITDA re-conciliations presentation appendix 9M/22 +1.8% yoy Q3/22 US$ mn -0.9% yoy US$ mn 20,993 +11.4%yoy +3.3% yoy -0.9% yoy +10.7% yoy -576 20,417 1,184 7,039 19,809 6,728 6,742 311 -297 Adj. Core Leasing Ad

  10. Slide 10: Significant impact of handset lease unwind on adj. EBITDA

    Significant impact of handset lease unwind on adj. EBITDA US$ bn 27.5 26.9 27.7 1.4 Leasing revenues 5.4 3.3 26.3 Adj. Core EBITDA 22.1 23.6 Pro forma FY/201 FY/21 FY/22e as per midpoint of TMUS guidance  FY 22 guidance for $1.3-1.4bn lease revenues, after $3.3bn in FY 21  Handset lease revenues t

  11. Slide 11: DT US EBITDA lower under IFRS than under US GAAP

    DT US EBITDA lower under IFRS than under US GAAP Key IFRS vs. US GAAP EBITDA bridge items DT US EBITDA, 9M/2022 US$ bn -0.6 21.0 -0.4 20.4 1.2 -0.4 0.3 0.0 0.0 19.8 -1.2 volatile 19.2 Adj. Core Handset lease Adj. EBITDA SBC IFRS 16 Spectrum REPA other EBITDA AL adj. Handset lease Adj. Core EBITDA re

  12. Slide 12: Net income differences mainly related to timing

    Net income differences mainly related to timing Key IFRS vs. US GAAP net income bridge items DT US net income, 9M/2022 5.6 US$ bn 4.4 merger related 1.5 wireline write-off 2.7 0.5 other DT share -1.6 deferred tax 4.81 2.9 1.1 Minority -0.3 0.8 share TM US net income Net Income Bridge Unadj. Net Spec

  13. Slide 13: DT US free cash flow higher under IFRS than under US GAAP

    DT US free cash flow higher under IFRS than under US GAAP Key IFRS vs. US GAAP FCF bridge items DT US FCF, 9M/2022 €9.4 US$/€bn €4.1 $5.5 €5.3 $0.2 $0.1 $5.7 FX US FCF (US GAAP) Spectrum leases Other US FCF AL (IFRS) FCF AL ex US DT FCF AL  Spectrum leases: OPEX under US GAAP and intangible asset (

  14. Slide 14: Net debt also impacted by accounting differences

    Net debt also impacted by accounting differences Key net debt ex leases bridge items Net debt excl. leases, 9M/2022 Key US GAAP IFRS net debt ex leases bridge items €bn € bn 110 71 $ 70 38 77 FX 33 71 1 -5 2 2 $ 75 $ 70 FX FX DT (IFRS) US (US GAAP) implied ex US but… actual ex US (US GAAP) Tower Spe

  15. Slide 15: The same is true for net debt incl. leases

    The same is true for net debt incl. leases Key net debt incl. leases bridge items Net debt incl. leases, 9M/2022 Key US GAAP IFRS net debt incl. leases bridge items €bn € bn 152 71 Global Signal IFRS 16 $ 70 35 4 114 35 2 2 1 FX 2 $ 34 $ 34 -8 71 T3 $ 111 FX FX 46 38 $ 70 FX FX DT (IFRS) US (US GAAP

  16. Slide 16: Appendix: US GAAP / IFRS bridges for TMUS for FY 2021

    Appendix US GAAP / IFRS bridges for 01 TMUS for FY 2021

  17. Slide 17: Various differences in TMUS and DT EBITDA reporting

    Various differences in TMUS and DT EBITDA reporting TMUS vs. DT EBITDA re-conciliations DT US EBITDA, FY/2021 US$ bn 0.0 26.9 26.9 -0.5 0.3 0.2 -0.4 0.4 3.3 -3.3 23.6 volatile 23.6 Adj. Core HSL (US Adj. EBITDA SBC IFRS 16 Spectrum REPA Other adj. EBITDA HSL (IFRS) adj. Core EBITDA GAAP) (US GAAP) l

  18. Slide 18: Net income differences mainly related to timing

    Net income differences mainly related to timing Key IFRS vs. US GAAP net income bridge items DT US net income, FY/2021 US$ bn 3.1 merger related 0.1 other 5.4 -0.8 deferred tax 2.4 2.41 DT share 3.0 3.0 0.0 3.0 Minority share Unadj. Net income Net Income Bridge Unadj. Net Special Factors Adj. Net in

  19. Slide 19: DT US free cash flow higher under IFRS than under US GAAP

    DT US free cash flow higher under IFRS than under US GAAP Key IFRS vs. US GAAP FCF bridge items €bn 8.8 4.9 3.9 $ 5.6 $ 0.2 $ 0.1 $ 5.9 FX US FCF (US GAAP) Spectrum leases Other US FCF AL (IFRS) FCF AL ex US DT FCF AL US IFRS AL FCF slightly higher:  Spectrum leases: executory contracts (OPEX) unde

  20. Slide 20: Net debt also impacted by accounting differences

    Net debt also impacted by accounting differences Key net debt ex leases bridge items Net debt excl. leases, FY/2021 Key US GAAP IFRS net debt ex leases bridge items €bn 62 € bn 101 $ 70 39 36 FX -3 62 64 1 2 -1 $ 70 $ 73 DT (IFRS) US (US GAAP) implied ex US but… actual FX FX as per leverage ex US (I

  21. Slide 21: The same is true for net debt incl. leases

    The same is true for net debt incl. leases Key net debt incl. leases bridge items Net debt incl. leases, FY/2021 Key US GAAP IFRS net debt incl. leases bridge items €bn € bn 62 132 $ 70 IFRS 16 Global Signal 26 26 2 90 FX $ 29 2 -2 2 1 FX -3 62 $ 29 $ 70 $ 102 FX T3 44 42 FX FX DT IFRS US (US GAAP)

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