Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q2 2007 Earnings Presentation
91 slides from Deutsche Telekom's earnings presentation, August 2007
Slide 1: Backup Q2 2007
Backup Q2 2007. Deutsche Telekom. Check out our IR website www.telekom.com/investor-relations for: This backup in .pdf and excel-format The IR calender Detailed information for debt investors Shareholder structure Corporate governance For further information on the business units please refer to: ww
Slide 2: Notes
Notes. ===!"§ Page 2
Slide 3: Content
Content. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adjusted for specia
Slide 4: At a Glance I
At a Glance I. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue Broadband/Fixed Network 6.106 6.167 6.117 24.515 5.832 5.655 -7,4% 12.231 11.487 -6,1% Mobile Communications 7.856 8.169 8.440 32.040 8.400 8.650 10,1% 15.431 17.050 10,5% Business Customers
Slide 5: At a Glance II
At a Glance II. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. EBITDA margin excluding special factors Broadband/Fixed Network 36,7% 36,2% 32,6% 35,7% 32,1% 33,7% -3,0%p 36,9% 32,9% -4,0%p Mobile Communications 30,1% 32,8% 30,5% 30,9% 30,2% 31,8% 1,7%p 30,1% 31,0% 0,
Slide 6: Excellent market position
Excellent market position. millions 1 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 Delta q.o.q. Delta y.o.y. abs. % abs. % Broadband lines (total) 2,11 9,8 10,4 11,5 12,4 13,0 0,6 4,8% 3,2 32,7% of which domestic 9,0 9,4 10,3 11,1 11,5 0,4 3,6% 2,5 27,8% of which: resale3 2,5 2,9 3,2 3,4 3,5 0,1 2,9
Slide 7: DT Group
DT Group. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adjusted for speci
Slide 8: DT consolidated income statement. Adjusted for special factors
DT consolidated income statement. Adjusted for special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Net revenue 15.130 15.480 15.895 61.347 15.453 15.575 2,9% 29.972 31.028 3,5% Cost of sales -8.024 -8.232 -9.337 -33.355 -8.612 -8.406 -4,8% -15.786 -17.018
Slide 9: DT Group. EBITDA reconciliation
DT Group. EBITDA reconciliation. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 H1/06 H1/07 Net revenue 15.130 15.480 15.895 61.347 15.453 15.575 29.972 31.028 Net profit (loss) 1.018 1.955 -898 3.165 459 608 2.108 1.067 + Profit (loss) attributable to minority interests 108 120 73 409 116 134 21
Slide 10: DT consolidated income statement. Unadjusted
DT consolidated income statement. Unadjusted. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Net revenue 15.130 15.480 15.895 61.347 15.453 15.575 2,9% 29.972 31.028 3,5% Cost of sales -8.057 -8.371 -10.506 -34.755 -8.620 -8.590 -6,6% -15.878 -17.210 -8,4% Gross prof
Slide 11: Special factors in the consolidated income statement
DT Group. Special factors in the consolidated income statement. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 H1/06 H1/07 Net revenue 0 0 0 0 0 0 0 0 Cost of sales -33 -139 -1.169 -1.400 -8 -184 -92 -192 Gross profit -33 -139 -1.169 -1.400 -8 -184 -92 -192 Selling expenses -11 -69 -702 -790 6 -6
Slide 12: Details on special factors I
DT Group. Details on special factors I. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 Effect on operating expenses -68 -358 -2.658 -3.176 -139 -298 of which: impairment losses on goodwill at Slovak Telekom -10 of which: expensing of SAC at T-Online from previous periods 0 -40 of which: impairmen
Slide 13: Details on special factors II
DT Group. Details on special factors II. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 Effect on profit (loss) from financial activities 0 0 0 196 -17 1 of which: others -17 -17 of which: sale of Sireo / Celcom 196 18 Effect on profit (loss) before income taxes -68 -358 -2.638 -2.960 -156 -88 Ef
Slide 14: Change in the composition of the Group in the second quarter
DT Group. Change in the composition in the Group in the second quarter. Reported MINUS PLUS Total % Pro figures Acquisition effects 1 Deconsolidation effects 5 effect Pro Forma forma Q2/07 Q2/06 Q2/07 Bus. Bus. Q2 reported millions of € Total Mobile 2 BB/FN3 4 Cust. Total Mobile BB/FN Cust. GHS6 200
Slide 15: Change in Scope on Consolidation in the current year
DT Group. Change in Scope on Consolidation in the current year. reported MINUS PLUS Total % Pro numbers Acquisition effects 1 Deconsolidation effects 5 effect Pro Forma forma H1/07 H1/06 H1/07 Bus. Bus. H1 reported 2 3 millions of € Total Mobile BB/FN Cust.4 Total Mobile BB/FN Cust.6 GHS7 2007 H1/06
Slide 16: Consolidated balance sheet. Assets
Consolidated balance sheet. Assets1. billions of € 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 % y.o.y. Current assets 18,7 15,7 16,0 17,3 15,2 -18,3% Cash and cash equivalents 5,7 1,9 2,8 4,0 2,1 -62,1% Trade and other receivables 7,3 7,5 7,8 7,6 7,6 4,1% Current recoverable income taxes 0,5 0,6 0
Slide 17: Consolidated balance sheet. Equity and liabilities
Consolidated balance sheet. Shareholders' equity and liabilities 1. billions of € 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 % y.o.y. Liabilities 78,5 74,9 80,5 79,4 77,3 -1,5% Current liabilities 23,0 19,2 22,1 21,1 22,0 -4,4% Financial liabilities 10,5 6,6 7,7 7,9 9,5 -9,5% Trade and other payab
Slide 18: Maturity profile
Maturity profile. Bonds and Medium Term Notes (MTN) maturities as of June 30, 2007 (€ billion) 14 12 10 For detailed information on Bonds, Medium Term Notes and the Mandatory Convertible Bond such as: 8 7.0 •Principal amount •Currency 6 4.6 4.6 •Maturity date 4.5 4.1 •Coupon 4 3.8 •ISIN Code 3.0 •Do
Slide 19: Liquidity reserves as of June 30, 2007
Liquidity reserves as of June 30, 2007. € billion Liquidity reserves (€ billion) 18.8 80 Unused bilateral credit lines 15.8 70 Assets 3.0 60 59.2 18.8 50 40 40.4 30 20 Total line availability Liquidity reserves 10 DT Group net debt 0 ===!"§ Page 19
Slide 20: Debt to net debt reconciliation
Debt to net debt reconciliation. millions of € 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 % q.o.q. % y.o.y. Bonds 38.587 34.674 36.288 36.176 35.013 -3,2% -9,3% Other financial liabilities 7.187 7.827 7.399 8.137 8.507 4,5% 18,4% Gross debt 45.774 42.501 43.687 44.313 43.520 -1,8% -4,9% Cash and c
Slide 21: Cash capex
Cash capex1. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Broadband/Fixed Network 773 806 953 3.250 722 534 -30,9% 1.491 1.256 -15,8% Mobile Communications 840 840 4.475 7.247 915 822 -2,1% 1.932 1.737 -10,1% Business Customers 201 186 253 795 273 149 -25,9% 356 42
Slide 22: Free cash flow
Free cash flow. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Net profit (loss) 1.018 1.955 -898 3.165 459 608 -40,3% 2.108 1.067 -49,4% Profit (loss) attributable to minority interests 108 120 73 409 116 134 24,1% 216 250 15,7% Profit (loss) after income taxes 1.12
Slide 23: Personnel
Personnel1. End of period 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 Delta q.o.q. Delta y.o.y. abs. % abs. % BBFN 107.835 106.624 101.594 100.434 98.459 -1.975 -2,0% -9.376 -8,7% Domestic 86.821 86.075 82.112 81.386 80.293 -1.093 -1,3% -6.528 -7,5% International 21.014 20.549 19.482 19.048 18.166
Slide 24: Exchange rates
Exchange rates. Average. € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 1 U.S dollar (USD) 0,79448 0,78459 0,77589 0,79625 0,76316 0,74185 1 British pound (GBP) 1,45390 1,47096 1,48544 1,46671 1,49169 1,47333 100 Czechs korunas (CZK) 3,52350 3,52917 3,56567 3,52842 3,56627 3,53691 100 Croatian kunas (HRK) 13
Slide 25: Notes
Notes. ===!"§ Page 25
Slide 26: Notes
Notes. ===!"§ Page 26
Slide 27: Mobile Communications
Mobile Communications. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adjus
Slide 28: T-Mobile. Adjusted for special influences
T-Mobile. Adjusted for specials influences. € million Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 7.856 8.169 8.440 32.040 8.400 8.650 10,1% 15.431 17.050 10,5% Net revenue 7.677 7.979 8.247 31.308 8.246 8.472 10,4% 15.082 16.718 10,8% ARPU revenue 6.883 7.189 7.3
Slide 29: T-Mobile. EBITDA Reconciliation
T-Mobile. EBITDA Reconciliation. € million Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 H1/06 H1/07 Total revenue 7.856 8.169 8.440 32.040 8.400 8.650 15.431 17.050 Profit (loss) from operations = EBIT 1.083 1.390 976 4.504 1.066 1.297 2.138 2.363 - Depreciation and amortization -1.280 -1.287 -1.566 -5.358 -
Slide 30: T-Mobile. Special influences
T-Mobile. Special influences. € million Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 H1/06 H1/07 Effects on EBITDA 0 -5 -35 -40 -18 -9 0 -27 - of which restructuring1 -5 -35 -40 -2 -9 -11 - of which other -16 -16 Effects on Operating Results = EBIT 0 -5 -68 -76 -18 -9 -3 -27 - of which effects on EBITDA (see
Slide 31: T-Mobile. Unadjusted
T-Mobile. Unadjusted. € million Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 7.856 8.169 8.440 32.040 8.400 8.650 10,1% 15.431 17.050 10,5% Net revenue 7.677 7.979 8.247 31.308 8.246 8.472 10,4% 15.082 16.718 10,8% ARPU revenue 6.883 7.189 7.325 27.935 7.485 7.722
Slide 32: T-Mobile Customer Summary - pro forma
T-Mobile Customer Summary - pro forma -. '000 (end of period) Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Germany1,2 30.415 30.651 31.398 31.398 33.049 34.329 12,9% 30.415 34.329 12,9% USA 23.338 24.139 25.041 25.041 26.020 26.877 15,2% 23.338 26.877 15,2% United Kingdom 3 16.7
Slide 33: T-Mobile TMO Germany
T-Mobile TMO Germany Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. 1,2 Customers (end of period) 30.415 30.651 31.398 31.398 33.049 34.329 12,9% 30.415 34.329 12,9% - Contract 14.559 14.709 15.092 15.092 15.343 15.520 6,6% 14.559 15.520 6,6% - Prepay2 15.856 15.942 16.3
Slide 34: Relax Tariffs Germany. Overview
Relax Tariffs Germany. Overview in € Relax 50 Relax 100 Relax 200 Relax 400 Relax 1000 1 .Monthly Payment Relax XL 24,00 39,00 49,00 69,00 79,00 Relax (with handset) 19,00 28,00 38,00 58,00 68,00 Relax eco (no handset) 10,00 19,00 29,00 49,00 59,00 Relax Student 7,50 17,50 - - - 2. Voice National vo
Slide 35: Data Options/Tariffs Germany
Data Options/Tariffs Germany. in € Data 5 Data 30 Sidekick Data Relax (excl. Relax XL), Basix, Max, CombiCard Relax, Relax (excl. Relax XL), Basix, Max, CombiCard Relax, Mobile Tariffs: CombiCard Data CombiCard Data, web'n'walk Connect, web'n'walk Plus Monthly Payment Data Option 5,00 10,00 15,00 Ta
Slide 36: Data Options/Tariffs Germany
Data Options/Tariffs Germany. Web'n'walk Surfoption: web'n'walk Basic web'n'walk Medium web'n'walk Large (Speed up to 7.2 Mbit/s) Monthly Payment Data Option 20,00 35,00 50,00 Tariff after Data volume (per MB) 0.80 0.80 0.50 Data volume 200 MB 400 MB 5 GB WLAN usage (per month) 3 hours 20 hours 200
Slide 37: T-Mobile TMO USA
T-Mobile TMO USA Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. 1,2 Customers (end of period) 23.338 24.139 25.041 25.041 26.020 26.877 15,2% 23.338 26.877 15,2% - Contract 19.656 20.428 21.211 21.211 21.937 22.624 15,1% 19.656 22.624 15,1% - Prepay2 3.682 3.711 3.829 3.
Slide 38: T-Mobile TMO USA Financials $ IFRS
T-Mobile TMO USA Financials $ IFRS $ Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenues (million) 4.205 4.364 4.523 17.125 4.545 4.778 13,6% 8.238 9.323 13,2% ARPU Revenue (million) 3.489 3.623 3.709 14.117 3.890 4.088 17,2% 6.785 7.978 17,6% Adj. EBITDA (million) 1.199
Slide 39: Individual myFaves Plans
Individual myFaves Plans sm Weekend/Night myFaves Monthly charge Whenever Minutes1) Minutes Minutes2) myFaves 300 $ 39.99 300 Unlimited Unlimited myFaves 600 $ 49.99 600 Unlimited Unlimited myFaves 1000 $ 59.99 1000 Unlimited Unlimited myFaves 1500 $ 69.99 1500 Unlimited Unlimited myFaves 2500 $ 109
Slide 40: T-Mobile TMO UK
T-Mobile TMO UK Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 16.730 16.660 16.905 16.905 16.734 16.786 0,3% 16.730 16.786 0,3% - Contract 3.611 3.594 3.715 3.715 3.821 3.893 7,8% 3.611 3.893 7,8% - Prepay2 13.119 13.065 13.190 13.190 12.91
Slide 41: Flext. New Standards of mobile Value
Flext. New Standards of mobile Value. Winner: Tariff Deal of the Year Equivilant value Monthly charge recieved1 Pure Minutes Pure Texts Flext 20 20 GBP 34 GBP 170 minutes 340 texts Flext 25 25 GBP 60 GBP 300 minutes 600 texts Flext 30 30 GBP 90 GBP 450 minutes 900 texts Flext 35 35 GBP 180 GBP 900 m
Slide 42: T-Mobile PTC (Poland) - pro forma
T-Mobile PTC (Poland) - pro forma - Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 10.918 11.912 12.228 12.228 12.373 12.525 14,7% 10.918 12.525 14,7% - Contract 3.941 4.226 4.531 4.531 4.746 4.914 24,7% 3.941 4.914 24,7% - Prepay2 6.978 7.6
Slide 43: T-Mobile TMO Austria
T-Mobile TMO Austria Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 3.112 3.157 3.180 3.180 3.139 3.148 1,2% 3.112 3.148 1,2% - Contract 1.895 1.925 1.962 1.962 1.943 1.965 3,7% 1.895 1.965 3,7% - Prepay2 1.218 1.231 1.218 1.218 1.196 1.183
Slide 44: T-Mobile TMO Czech Republic
T-Mobile TMO Czech Republic Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 4.734 4.823 5.049 5.049 5.109 5.140 8,6% 4.734 5.140 8,6% - Contract 1.477 1.636 1.809 1.809 1.915 2.014 36,4% 1.477 2.014 36,4% - Prepay2 3.257 3.187 3.240 3.240 3.1
Slide 45: T-Mobile TMO Netherlands
T-Mobile TMO Netherlands Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 2.381 2.466 2.552 2.552 2.592 2.638 10,8% 2.381 2.638 10,8% - Contract 1.320 1.345 1.337 1.337 1.338 1.343 1,7% 1.320 1.343 1,7% - Prepay2 1.061 1.121 1.215 1.215 1.254
Slide 46: T-Mobile TMO Hungary
T-Mobile TMO Hungary Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 4.279 4.307 4.431 4.431 4.478 4.517 5,6% 4.279 4.517 5,6% - Contract 1.418 1.461 1.545 1.545 1.599 1.654 16,6% 1.418 1.654 16,6% - Prepay2 2.862 2.846 2.886 2.886 2.879 2.86
Slide 47: T-Mobile TMO HR (Croatia)
T-Mobile TMO HR (Croatia) Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 2.023 2.076 2.158 2.158 2.192 2.222 9,8% 2.023 2.222 9,8% - Contract 471 500 555 555 589 614 30,4% 471 614 30,4% - Prepay2 1.552 1.576 1.603 1.603 1.603 1.608 3,6% 1.55
Slide 48: T-Mobile Slovensko (Slovakia)
T-Mobile T-Mobile Slovensko (Slovakia) Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 2.034 2.096 2.201 2.201 2.223 2.226 9,4% 2.034 2.226 9,4% - Contract 828 876 965 965 998 1.027 24,0% 828 1.027 24,0% - Prepay2 1.206 1.220 1.237 1.237 1.22
Slide 49: T-Mobile Macedonia
T-Mobile T-Mobile Macedonia Thousands Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Customers (end of period) 1,2 891 926 945 945 955 1.002 12,5% 891 1.002 12,5% - Contract 154 162 177 177 195 233 51,3% 154 233 51,3% - Prepay2 737 764 767 767 759 769 4,3% 737 769 4,3% Net adds 14
Slide 50: Notes
Notes. ===!"§ Page 50
Slide 51: Notes
Notes. ===!"§ Page 51
Slide 52: Broadband/Fixed Network
Broadband/Fixed Network. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adj
Slide 53: Broadband/Fixed Network. Adjusted for special factors
Broadband/Fixed Network. Adjusted for special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. 1H/06 1H/07 % y.o.y Total revenue 6.106 6.167 6.117 24.515 5.832 5.655 -7,4% 12.231 11.487 -6,1% Domestic 5.445 5.493 5.433 21.835 5.146 4.948 -9,1% 10.909 10.094 -7,5% International 661
Slide 54: Broadband/Fixed Network. EBITDA reconciliation
Broadband/Fixed Network. EBITDA reconciliation. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 1H/06 1H/07 Total revenue 6.106 6.167 6.117 24.515 5.832 5.655 12.231 11.487 Profit (loss) from operations = EBIT 1.268 1.143 -325 3.356 976 929 2.538 1.905 Depreciation, amortization and - -966 -923 -9
Slide 55: Broadband/Fixed Network. Unadjusted
Broadband/Fixed Network. Unadjusted. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. 1H/06 1H/07 % y.o.y. Total revenue 6.106 6.167 6.117 24.515 5.832 5.655 -7,4% 12.231 11.487 -6,1% Domestic 5.445 5.493 5.433 21.835 5.146 4.948 -9,1% 10.909 10.094 -7,5% International 661 674 684 2.680 69
Slide 56: Broadband/Fixed Network. Special factors
Broadband/Fixed Network. Special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 1H/06 1H/07 Effect on EBITDA -6 -167 -1.334 -1.553 14 -50 -52 -36 of which: expensing of SAC at T-Online from -40 -40 previous quarters of which: staff-related restruct. MT, HT, ST -1 -2 -18 -21 -7 -14 -1 -18
Slide 57: Key operational performance - Broadband
Broadband/ Fixed Network.1 Key operational performance - Broadband (excl. T-Online France) Thousands 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 q.o.q.% y.o.y.% Broadband Lines in operation (total)1/2/3/4/7 9.812 10.374 11.450 12.397 12.951 32,0% 4,5% of which Retail 1 7.130 7.334 8.075 8.796 9.265
Slide 58: Key operational performance - Narrowband
Broadband/ Fixed Network.1 Key operational performance - Narrowband (excl. T-Online France) Thousands 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 q.o.q.% y.o.y.% Narrowband Lines (total)1 40.083 39.498 38.961 38.301 37.725 -5,9% -1,5% Domestic 34.234 33.695 33.192 32.605 32.089 -6,3% -1,6% analog l
Slide 59: International Key financial figures
International Key financial figures (incl. Club Internet). millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 y.o.y.% International (total)1 Total revenue 661 674 684 2.680 698 722 9,2% Total adj. EBITDA 212 198 209 845 214 249 17,5% Total adj. EBITDA margin 32,1% 29,4% 30,6% 31.5% 30,7% 34,5% 2,4%p
Slide 60: International (Eastern Europe only) in local currency
International (Eastern Europe only) Key financial figures in local currency. millions Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 y.o.y.% 1/2 Magyar Telekom (MT) (HUF) Revenue 78,676 81,504 75,148 312,890 75,053 77,087 -2,0% Adj. EBITDA 30,586 33,024 33,950 129,027 31,507 32,550 6,4% Adj. EBITDA margin 38,9
Slide 61: Domestic. Revenue split
Domestic.1 Revenue split. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 y.o.y.% Domestic (total) 5,445 5,493 5,433 21,835 5,146 4,948 -9,1% of which network communications 2,838 2,801 2,716 11,240 2,631 2,556 -9,9% - thereof narrowband access 1,947 1,984 1,923 7,803 1,946 1,934 -0,7% thereof cal
Slide 62: Domestic. Call minutes and call revenues
Domestic. Call minutes and call revenues.1 Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 y.o.y.% 2 Minutes (billions) Total 25.65 24.89 26.52 105.04 26.51 24.61 -4,1% City/local 14.49 13.78 14.83 59.42 15.17 13.68 -5,6% Long distance 8.66 8.57 9.21 35.65 8.91 8.43 -2,7% International 0.74 0.74 0.78 3.02 0.83
Slide 63: Personnel development
Broadband/ Fixed Network. Personnel development 1/3. Year end/quarter end1 Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 y.o.y.% 2/3 Number of employees (total) 107.835 106.624 101.594 101.594 100.434 98.459 -8,7% Domestic 86.821 86.075 82.112 82.112 81.386 80.293 -7,5% International 2/3 21.014 20.549 19.482
Slide 64: Complete Packages
Broadband/ Fixed Network. Complete Packages.1/2/3 Calltime Calltime XXL Local XXL Fulltime T-Net T-ISDN including city flat flat rate within up to 120 minutes up to 240 minutes rate Germany within Germany within Germany from € 19.95 from € 27.95 from € 25.95 from € 35.95 Off peak 0/1.5 0/1.5 0 0 Cit
Slide 65: Double Play
Call & Surf Start6 Call & Surf Basic Call & Surf Basic C&S Comfort Call & Surf Comfort Plus bandwidth DSL T-Net T-ISDN bandwidth DSL 6 Mbit/s, Bandwidth DSL 16 Mbit/s, 1 Mbit/s, voice and Internet up to 120 minutes within up to 240 minutes within flat rate Internet usage and flat rate Internet usage
Slide 66: Triple Play
Entertain Basic Entertain Comfort Entertain Comfort Plus bandwidth DSL16 Mbit/s, bandwidth DSL 16 Mbit/s bandwidth DSL 16 Mbit/s flat rate internet usage and plus, flat rate internet usage plus, flat rate Internet usage flat rate voice usage, video and flat rate voice usage, and flat rate voice usag
Slide 67: Overview interconnection tariffs
Broadband / Fixed Network Overview interconnection tariffs (excl. VAT). Peak Peak Off-Peak Off-Peak Cent/min. (9:00-18:00), old (9:00-18:00), new 1 (18:00-9:00), old (18:00-9:00), new 1 Termination/Origination fees Local 0.59 0.52 0.40 0.36 Single transit 0.96 0.88 0.64 0.59 Double transit national
Slide 68: IPTV packages
Broadband/ Fixed Network. T-Home offers IPTV packages*. Entertain Basic Entertain Comfort Entertain Comfort VDSL Entertain Comfort Plus Entertain Comfort Plus VDSL Entertainment Included Access to Video on demand ● ● ● ● ● Basic TV channels ● ● ● ● TV archive of selected TV channels ● ● ● ● ● Premiu
Slide 69: Complete Packages
Broadband/ Fixed Network. Complete Packages. Level I Level II Level III starter premium package package Triple - T-Home T-Home Entertain Entertain T-HomeComf. Play Classic Comfort Compl VDSL . Basic Plus VDSL Complete Plus from 60,84 € from 80,84 € from 90,84 € from 51,31 € from 69,95 € from 84,95€
Slide 70: Notes
Notes. ===!"§ Page 70
Slide 71: Notes
Notes. ===!"§ Page 71
Slide 72: Business Customers
Business Customers. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adjusted
Slide 73: Business Customers. Adjusted for special factors
Business Customers. Adjusted for special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 3.208 3.174 3.424 12.869 2.906 2.962 -7,7% 6.271 5.868 -6,4% of which: international 607 578 669 2.339 576 624 2,8% 1.092 1.200 9,9% Net revenue 2.350 2.265
Slide 74: Business Customers. EBITDA reconciliation
Business Customers. EBITDA reconciliation. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 3.208 3.174 3.424 12.869 2.906 2.962 -7,7% 6.271 5.868 -6,4% Profit (loss) from operations = EBIT (unadj.) 48 34 -1.029 -835 44 34 -29,2% 160 78 -51,3% Depreciatio
Slide 75: Business Customers. Unadjusted
Business Customers. Unadjusted. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 3.208 3.174 3.424 12.869 2.906 2.962 -7,7% 6.271 5.868 -6,4% Net revenue 2.350 2.265 2.483 9.301 2.183 2.239 -4,7% 4.553 4.422 -2,9% EBITDA 286 260 -764 111 261 256 -10,5% 61
Slide 76: Business Customers. Special factors
Business Customers. Special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Effect on EBITDA -54 -61 -1.037 -1.180 - -24 55,6% -82 -24 70,7% of which restructuring provisions (EBITDA) -45 -62 -1.037 -1.169 - -24 46,7% -70 -24 65,7% of which restructuring prov
Slide 77: Enterprise Services. Summary
Business Customers Enterprise Services. Summary millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 2.119 2.103 2.315 8.533 1.941 1.992 -6,0% 4.115 3.933 -4,4% Adj. EBITDA 322 318 286 1.249 222 263 -18,3% 645 485 -24,8% Adj. EBITDA margin 15,2% 15,1% 12,4% 1
Slide 78: Computing & Desktop Services
Computing & Desktop Services. Financial (millions of €) Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 1.142 1.125 1.209 4.554 1.005 1.036 -9,3% 2.220 2.041 -8,1% Adj. EBITDA 283 254 211 989 173 219 -22,6% 524 393 -25,0% Adj. EBITDA margin 24,8% 22,6% 17,5% 21,7% 17,
Slide 79: Systems Integration
Systems Integration. Financial (millions of €) Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 432 452 511 1.783 415 415 -3,9% 820 830 1,2% Adj. EBITDA 2 33 37 117 14 11 450,0% 46 24 -47,8% Adj. EBITDA margin 0,5% 7,3% 7,2% 6,6% 3,4% 2,7% -- 5,6% 2,9% -- Capex1 4 5 33
Slide 80: Telecommunications
Telecommunications. Financial (millions of €) Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 545 526 595 2.196 521 541 -0,7% 1.075 1.062 -1,2% Adj. EBITDA 37 31 38 143 35 33 -10,8% 75 68 -9,3% Adj. EBITDA margin 6,8% 5,9% 6,4% 6,5% 6,7% 6,1% -- 7,0% 6,4% -- Capex1 13
Slide 81: Business Services. Summary
Business Customers Business Services. Summary millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 1.089 1.071 1.109 4.336 965 970 -10,9% 2.156 1.935 -10,3% Adj. EBITDA 18 3 -13 42 39 17 -5,6% 52 56 7,7% Adj. EBITDA margin 1,7% 0,3% -1,2% 1,0% 4,0% 1,8% -- 2,
Slide 82: Notes
Notes. ===!"§ Page 82
Slide 83: Notes
Notes. ===!"§ Page 83
Slide 84: GHS
GHS. At a glance 4 Netherlands 45 Excellent market position 6 Hungary 46 Croatia 47 Group Slovakia 48 Adjusted income statement 8 Macedonia 49 EBITDA reconciliation 9 Unadjusted income statement 10 Braodband/Fixed Network Spezial factors in the income statement 11 Key figures adjusted for special fa
Slide 85: Group Headquarters & Shared Services. Adjusted for special factors
Group Headquarters & Shared Services. Adjusted for special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 914 960 992 3.758 952 988 8,1% 1.806 1.940 7,4% Net revenue 89 86 116 372 89 102 14,6% 170 191 12,4% EBITDA -94 -134 -300 -461 67 -21 77,7
Slide 86: Group Headquarters & Shared Services. EBITDA reconciliation
Group Headquarters & Shared Services. EBITDA reconciliation. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 H1/06 H1/07 Total revenue 914 960 992 992 952 988 1.806 1.940 Profit (loss) from operations = EBIT -294 -584 -1.142 -1.142 -250 -215 -412 -465 Depreciation, amortization and - impairment lo
Slide 87: Group Headquarters & Shared Services. Unadjusted
Group Headquarters & Shared Services. Unadjusted. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 % y.o.y. H1/06 H1/07 % y.o.y. Total revenue 914 960 992 3.758 952 988 8,1% 1.806 1.940 7,4% Net revenue 89 86 116 372 89 102 14,6% 170 191 12,4% EBITDA -97 -257 -897 -1.191 -68 -26 73,2% -37 -94 n/a o
Slide 88: Group Headquarters & Shared Services. Special factors
Group Headquarters & Shared Services. Special factors. millions of € Q2/06 Q3/06 Q4/06 FY/06 Q1/07 Q2/07 Effect on EBITDA -3 -123 -597 -730 -135 -5 of which: transfer payments to Vivento 14 0 5 23 0 1 Provisions for staff reduction, severance payments and others -17 -123 -602 -753 -135 -6 Effects on
Slide 89: Vivento. Results of efficient processes
Vivento. Results of efficient processes. End of period 1 30/06/06 30/09/06 31/12/06 31/03/07 30/06/07 Transfers to Vivento (cumulative) 35.600 36.200 36.800 37.700 38.000 Left Vivento (cumulative) 20.800 21.500 23.300 24.200 26.900 2 Employees in Vivento 14.800 14.800 13.500 13.500 11.100 Business l
Slide 90: Vivento. Focus on efficiency
Vivento. Focus on efficiency. 1 Vivento as of June 30, 2007 Ongoing development of business Transfers to Vivento: 38,000 models and employment opportunities Business Approx. 3,600 left Vivento in H12007 – lines Remaining 5,500 about 79% external Vivento employees Approx. 16,400 employees were rou
Slide 91: Glossary and Disclaimer
Glossary and Disclaimer. In addition to financial information presented in accordance with IFRS, this presentation contains non-GAAP financial measures, such as ... which is defined as ... EBIT Abbreviation for EARNINGS BEFORE INTEREST AND TAXES. EBIT is equivalent to the P&L-line "Operating Results