Deutsche Telekom AG · XETR:DTE

Deutsche Telekom — Investor Day (March 2010)

28 slides from Deutsche Telekom's investor day presentation, Mar 18, 2010

  1. Slide 1: Deutsche Telekom Investor Day. Europe: Increase competitiveness.

    Deutsche Telekom Investor Day. Europe: Increase competitiveness. March 18, 2010 Guido Kerkhoff

  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: Agenda

    Agenda. 1 Differentiated strategy in tough market environment starting to pay off NatCo achievements and initiatives 2 a) Service Leader (TMCZ, PTC) b) Smart Challenger (TMA, TMNL) 3 Joint Venture on track (TMUK) 4 Targets 3

  4. Slide 4: Fix - Transform - Innovate: EU region addresses 4 of the 5 strategic building blocks

    Fix - Transform - Innovate: EU region addresses 4 of the 5 strategic building blocks. Fix Transform Innovate Improve performance Leverage Build networks and Connected work Connected life of mobile-centric one company in processes for the with unique across all screens assets integrated assets gigabi

  5. Slide 5: DT strategy breakdown into NatCo specific ambitions

    DT strategy breakdown into NatCo specific ambitions. Fix Transform Innovate Improve performance Leverage Build networks and Connected work Connected life of mobile-centric one company in processes for the with unique across all screens assets integrated assets gigabit society ICT solutions Positioni

  6. Slide 6: Increase competitiveness in EU5 with differentiated NatCo strategies

    Increase competitiveness in EU5 with differentiated NatCo strategies. Service Revenue Market Position Strategy Share 20091 CZ 38.3% Service leader #1  Differentiation through quality  Efficient telco PL 31.4%  Market leader offerings (including FMC) #2 AT 31.0% Smart Challenger  Quality on par l

  7. Slide 7: 2009 was a tough year with massive F/X deterioration, adverse regulatory effects

    2009 was a tough year with massive F/X deterioration, adverse regulatory effects and a slowing down economy. F/X 2008 – 2009 real GDP1 2008 – 2009 MTR rates 2008 – 2009 UK - 8.0% - 4.8% - 15% NL - - 4.0% - 15% AT - - 3.6% - 34% CZ - 2.3% - 4.2% - 16% PL - 11.0% +1.3% - 41% 1 Source: Estimates by Ins

  8. Slide 8: EU 5: FX and regulation explain revenue and adj. EBITDA decline

    EU 5: FX and regulation explain revenue and adj. EBITDA decline. Service Revenue Development 2008 – 2009 Adj. EBITDA Development 2008 – 2009 (€ mn) (€ mn) 9,742 2,939 838 255 470 21 8,413 2,557 153 26 Service FX Regulation1 Operational Service Adj. EBITDA FX Regulation1 Other Adj.EBITDA Revenues MTR

  9. Slide 9: Excellent efficiency management helped to stabilize EBITDA despite revenue pressure

    Excellent efficiency management helped to stabilize EBITDA despite revenue pressure. Service Revenues (yoy development)1 Adj. EBITDA (yoy development)1 (€ mn) (€ mn) Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 -41 -37 -68 -244 -302 -304 -351 -372 1 EU mobile network operator (excluding ‘other’ r

  10. Slide 10: Agenda

    Agenda. 1 Differentiated strategy in tough market environment starting to pay off NatCo achievements and initiatives 2 a) Service Leader (TMCZ, PTC) b) Smart Challenger (TMA, TMNL) 3 Joint Venture on track (TMUK) 4 Targets 10

  11. Slide 11: TMCZ achieved service revenue market leadership and increased profitability beyond 50%

    TMCZ achieved service revenue market leadership and increased profitability beyond 50%. Service Revenue Market Shares1 Adj. EBITDA margin2 39% TMCZ O2 47.7% 51.6% 43.8% 37% Vodafone 23% 2007 2008 2009 2007 2008 2009  Highly efficient company: leads to highest profitability in EU segment  Successfu

  12. Slide 12: TMCZ: Successful acquisition and integration of České Radiokomunikace retail telecoms operations

    TMCZ: Successful acquisition and integration of České Radiokomunikace retail telecoms operations. České Radiokomunikace (ČRa) T-Mobile Czech Republic  ČRa as leading alternative provider of fixed-line telecoms  Focus on selective FMC strategy services  Need to extend fixed coverage footprint and

  13. Slide 13: TMCZ: Growing through an integrated operator strategy

    TMCZ: Growing through an integrated operator strategy.  Integration of CRa DSL retail business Integrated operator  Build position of an integrated operator, target markets: Triple play  Customer treatment as main differentiator  Build loyalty in our customers Differentiation &  Consistent focu

  14. Slide 14: PTC: EBITDA margin market leadership achieved since Q3

    PTC: EBITDA margin market leadership achieved since Q3, service revenue market share leadership on eye level with Polkomtel. Service Revenue Market Shares1 Adj. EBITDA margin1,2 36% 45% 35% 40% 34% 35% PTC 33% Orange Polkomtel 30% 32% Polkomtel PTC 25% 31% Orange 30% 20% 2007 2008 2009 2007 2008 200

  15. Slide 15: PTC: Focus on sharpening performance

    PTC: Focus on sharpening performance.  Voice/data push  Service culture Market leadership  Retail optimization  CRM/analytics  Bundling Customer excellence  SOHO strategy  Cost & efficiency management Save for service  Retail optimization  IT architecture simplification Smart technology  C

  16. Slide 16: Agenda

    Agenda. 1 Differentiated strategy in tough market environment starting to pay off NatCo achievements and initiatives 2 a) Service Leader (TMCZ, PTC) b) Smart Challenger (TMA, TMNL) 3 Joint Venture on track (TMUK) 4 Targets 16

  17. Slide 17: TMA: Smart Challenger works – service revenue market share stable and increased margins

    TMA: “Smart Challenger” works – service revenue market share stable and increased margins. Service Revenue Market Share1 Adj. EBITDA Margin1,2 mobilkom 45% 45% mobilkom austria 40% 40% austria 35% 35% Orange 30% TMA 30% TMA 25% 25% 20% 20% Orange 15% 15% 2007 2008 2009 2007 2008 2009  TMA defended

  18. Slide 18: TMA: outperformed mobilkom austria in revenue and ARPU development

    TMA: “Smart challenger” works - outperformed mobilkom austria in revenue and ARPU development, EBITDA margin improving. Total Revenue1 ARPU (blended)1 Adj. EBITDA margin (€ mn) (in €) (in %) -6% 1,668 -11% -4% 1,574 -8% 1,085 1,038 28 26 24 25 26.3 27.3 2008 2009 2008 2009 Q4'08 Q4'09 Q4'08 Q4'09 20

  19. Slide 19: TMA: Further strengthen #2 position as a Smart Challenger

    TMA: Further strengthen #2 position as a “Smart Challenger”.  Achieve cost benchmark Save for service  Leverage outsourcing  Move up & emotionalize T-Mobile brand Multi-brand  tele.ring: Outsmart orange execution  Further extend low frills  Push data  Shift-to-direct  Value based steering Sa

  20. Slide 20: TMA: Multi-brand execution – clear strategies and KPI targets

    TMA: Multi-brand execution – clear strategies and KPI targets. Competitors’ positioning Dual-brand strategy High T-Mobile mobilkom Quality attacker (focus consumer & b2b) Quality, value, service  innovation & internationality (e.g. ‘wir sind Smartphone’) T-Mobile  continue growth in postpaid 3 tel

  21. Slide 21: TMNL with successfully completed integration of Orange NL in only two years

    TMNL with successfully completed integration of Orange NL1 in only two years and gains from synergies. Achievements Customers  All Orange customers already integrated since Q3/09 to T-Mobile Network, products and contracts. Brand  Refurbishment and closure of Orange shops was completed by June 200

  22. Slide 22: TMNL with successful migration of Orange NL – Operational performance improved

    TMNL with successful migration of Orange NL1 – Operational performance improved. Total Revenue development Adj. EBITDA Margin2,3 (€ mn) 1,806 1,807 45% KPN 1,318 40% 35% Vod 30% TMNL 25% 20% 15% 10% 2007 2008 2009 2007 2008 2009  Ongoing growth in revenue  EBITDA margin shows considerable improvem

  23. Slide 23: TMNL: Execution of Smart Attacker strategy with ambition to go for No. 2

    TMNL: Execution of “Smart Attacker” strategy with the ambition to go for No. 2 position.  Continue cost reductions Save for service  Achieve G2M excellence (shift-to-direct, value based steering) Focus  TMNL: Best deal available on the market on customer  Ben: Growing no-frills operator with lea

  24. Slide 24: TMNL: Focus on customer with dedicated brand strategies

    TMNL: Focus on customer with dedicated brand strategies to achieve targeted positioning. Competitors positioning1 Dual-brand strategy High KPN T-Mobile Vodafone Smart attacker Best deal available Quality, value, service Hi  Value play T-Mobile  Improve prepaid performance Ben BEN Lead challenger g

  25. Slide 25: Agenda

    Agenda. 1 Differentiated strategy in tough market environment starting to pay off NatCo achievements and initiatives 2 a) Service Leader (TMCZ, PTC) b) Smart Challenger (TMA, TMNL) 3 Joint Venture on track (TMUK) 4 Targets 25

  26. Slide 26: Strong execution in establishing new market leader in UK

    Strong execution in establishing new market leader in UK. Market leadership Customer leadership People leadership 37%+ mobile subscriber based on network, top talents & market share distribution, loyalty & experience best place to work Step change in business model Foundation  Efficient & agile ope

  27. Slide 27: Agenda

    Agenda. 1 Differentiated strategy in tough market environment starting to pay off NatCo achievements and initiatives 2 a) Service Leader (TMCZ, PTC) b) Smart Challenger (TMA, TMNL) 3 Joint Venture on track (TMUK) 4 Targets 27

  28. Slide 28: Country specific strategies reflected in the ambitions

    Country specific strategies reflected in the ambitions. 2009 Ambition level 2012 TMCZ Service Leader: Market share service revenues 38.3% Further stabilize market position 1 Integrated Operator: Fixed broadband revenues ~ 30mn EUR 2 Double revenues PTC Efficiency management: EBITDA margin ~ 35% Cont

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