Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Q1 2004 Earnings Presentation
87 slides from Deutsche Telekom's earnings presentation, May 2004
Slide 1: Backup Q1 2004
Backup Q1 2004. Investor Relations, Bonn office Phone +49 228 181 - 8 88 80 Fax +49 228 181 - 8 88 99 E-Mail [email protected] Investor Relations, New York office Phone +1 212 424 2926 Phone 1 877 DT SHARE (toll-free) Fax +1 212 424 2986 E-Mail [email protected] This back
Slide 2: Content
Content. § Financials § T-Com At a Glance ........................................................................................................................... 5 Operational performance................................44 Group Eastern Europe: Rev. & EBITDA..................45-46 Adj. P&L.......
Slide 3: Non-GAAP figures
Non-GAAP figures. This presentation contains a number of non-GAAP figures, such as ... which is defined as ... EBT “Earnings before tax”: Results from ordinary business activities before other taxes. Adj. EBT EBT adjusted for special influences. EBIT “Earnings before interest and tax”: Results from
Slide 4: Financials
Financials. =======!"§ Page 4
Slide 5: At a Glance
At a Glance. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net Revenue T-Com 6,441 6,123 6,152 6,400 25,116 6,053 -6.0% T-Mobile 5,006 5,233 5,632 5,701 21,572 5,678 13.4% T-Systems 1,715 1,754 1,798 1,917 7,184 1,722 0.4% T-Online 394 402 413 453 1,662 453 15.0% GHS 62 81 82 79 304 80 29.0
Slide 6: Group P&L excluding special influences
Group P&L excluding special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenue 13,618 13,593 14,077 14,550 55,838 13,986 2.7% Cost of Sales -7,569 -7,604 -7,833 -8,227 -31,233 -7,570 0.0% Gross profit/loss from sales 6,049 5,989 6,244 6,323 24,605 6,416 6.1% Selling Costs
Slide 7: Group P&L including special influences
Group P&L including special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenue 13,618 13,593 14,077 14,550 55,838 13,986 2.7% Cost of Sales -7,569 -7,741 -7,828 -8,264 -31,402 -7,570 0.0% Gross profit/loss from sales 6,049 5,852 6,249 6,286 24,436 6,416 6.1% Selling Costs
Slide 8: Special influences in Group P&L
Special influences in Group P&L. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Net revenue 0 0 0 0 0 0 Cost of Sales 0 -137 5 -37 -169 0 Gross profit/loss from sales 0 -137 5 -37 -169 0 Selling Costs 0 -70 -3 -12 -85 0 General administrative costs -47 -45 13 -262 -341 0 Other operating income 547 39
Slide 9: Special influences
Special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on Operating expenses -119 -280 -115 -455 -969 -69 - of which Restructuring charges T-Com -27 -39 -66 (MATÁV/ST/HT)2 - of which Accruals for personnel reduction -90 -68 -158 - of which Additional Minimum Liability -230 12 -53 -
Slide 10: EBIT and EBITDA reconciliation in DT Group
EBIT and EBITDA reconciliation in DT Group. € million FY/03 Q1/03 Q1/04 Net revenue 55,838 13,618 13,986 Net incom e/loss 1,253 853 169 - Income/loss applicable to minority shareholders -370 -101 -97 = Income/loss after taxes 1,623 954 266 - Income taxes 225 460 -80 = Results from ordinary business
Slide 11: Change in the scope of consolidation
Change in the scope of consolidation. MINUS PLUS Q1/2004 reported reported 1 2 Delta % Acquisition effects Deconsolidation effects num bers num bers Total pro forma y.o.y. 3 € million Q1/03 Q1/04 Total T-Online Total T-Com 4 T-System s5 T-Mobile6 effect numbers Gross revenue 13,618 13,986 16 16 251
Slide 12: Blank page
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Slide 13: T-Com adjusted for special influences
T-Com adjusted for special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 7,490 7,153 7,104 7,459 29,206 6,975 -6.9% - of which domestic 6,550 6,187 6,119 6,495 25,351 6,059 -7.5% - of which E. Europe 940 966 985 964 3,855 916 -2.6% Net revenue 6441 6123 6152 6400 2
Slide 14: EBITDA reconciliation in T-Com
EBITDA reconciliation in T-Com. € million FY/03 Q1/03 Q1/04 Total revenue 29,206 7,490 6,975 Results from ordinary business activities 4,247 1,418 1,251 - Financial income/ expense, net -727 -132 -163 - Depreciation and amortization -5,169 -1,318 -1,184 - Other taxes -21 -10 -7 = EBITDA 10,164 2,878
Slide 15: T-Com unadjusted
T-Com unadjusted. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 7,490 7,153 7,104 7,459 29,206 6,975 -6.9% - of which domestic 6,550 6,187 6,119 6,495 25,351 6,059 -7.5% - of which E. Europe 940 966 985 964 3,855 916 -2.6% Net revenue 6,441 6,123 6,152 6,400 25,116 6,053 -6.0%
Slide 16: Special influences affecting T-Com
Special influences affecting T-Com € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on EBITDA 204 -296 -1 -99 -192 -36 - of which book gain sale of cable 366 87 453 - of which charges on sale of cable -119 -7 -21 -12 -159 - Accruals for personnel reductions -66 -18 -84 - Additional minimum liabi
Slide 17: T-Mobile adjusted for special influences
T-Mobile adjusted for special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 5,310 5,557 5,920 5,991 22,778 5,944 11.9% Net revenue 5,006 5,233 5,632 5,701 21,572 5,678 13.4% EBITDA 1,514 1,743 1,748 1,666 6,671 1,677 10.8% EBITDA margin 28.5% 31.4% 29.5% 27.8% 29.3
Slide 18: EBITDA reconciliation in T-Mobile
EBITDA reconciliation in T-Mobile. € million FY/03 Q1/03 Q1/04 Total revenue 22,778 5,310 5,944 Results from ordinary business activities 831 -77 156 - Financial income/ expense, net -895 -302 -265 - Depreciation and amortization -5,196 -1,264 -1,234 - Other taxes -94 -25 -22 = EBITDA 7,016 1,514 1,
Slide 19: T-Mobile unadjusted
T-Mobile unadjusted. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 5,310 5,557 5,920 5,991 22,778 5,944 11.9% Net revenue 5,006 5,233 5,632 5,701 21,572 5,678 13.4% EBITDA 1,514 2,088 1,748 1,666 7,016 1,677 10.8% EBITDA margin 28.5% 37.6% 29.5% 27.8% 30.8% 28.2% -0.3%p Depric
Slide 20: Special influences affecting T-Mobile
Special influences affecting T-Mobile. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on EBITDA 0 345 0 0 345 0 - of which gain on sale of MTS 352 352 - of which AML -7 -7 Effect on Results of ordinary business activities 0 345 0 0 345 0 =======!"§ Unaudited Figures Page 20
Slide 21: T-Systems adjusted for special influences
T-Systems adjusted for special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 2,560 2,567 2,617 2,870 10,614 2,475 -3.3% Net revenue 1,715 1,754 1,798 1,917 7,184 1,722 0.4% EBITDA 286 337 393 399 1,415 301 5.2% EBITDA margin 11.2% 13.1% 15.0% 13.9% 13.3% 12.2% 1.0%
Slide 22: EBITDA reconciliation in T-Systems
EBITDA reconciliation in T-Systems. € million FY/03 Q1/03 Q1/04 Total revenue 10,614 2,560 2,475 Results form ordinary business activities -138 -18 -42 - Other taxes -8 -1 -1 = EBT -130 -17 -41 - Special influences affecting EBT 3 -82 0 = Adj. EBT -127 -99 -41 - Financial income/expense, net -43 -18
Slide 23: T-Systems unadjusted
T-Systems unadjusted. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 2,560 2,567 2,617 2,870 10,614 2,475 -3.3% Net revenue 1,715 1,754 1,798 1,917 7,184 1,722 0.4% EBITDA 368 319 389 336 1,412 301 -18.2% EBITDA margin 14.4% 12.4% 14.9% 11.7% 13.3% 12.2% -2.2%p Depreciation and
Slide 24: Special influences affecting T-Systems
Special influences affecting T-Systems. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on EBITDA 82 -18 -4 -63 -3 0 - of which gain of sale of Siris 20 20 - of which gain of sale of Telecash 82 82 - of which loss on sale of Multilink and T- Systems CS (Switzerland) -16 -55 -71 - of which AML -
Slide 25: T-Online adjusted for special influences
T-Online adjusted for special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 445 449 453 504 1,851 493 10.8% Net revenue 394 402 413 453 1,662 453 15.0% EBITDA 75 76 84 75 310 119 58.7% EBITDA margin 16.9% 16.9% 18.5% 14.9% 16.7% 24.1% 7.2%p Depreciation and amortiz
Slide 26: EBITDA reconciliation in T-Online
EBITDA reconciliation in T-Online. € million FY/03 Q1/03 Q1/04 Total revenue 1,851 445 493 Results from ordinary business activities 104 2 37 - Financial income/expense, net 200 29 27 - Depreciation and amortization -430 -102 -109 - Other taxes -1 0 0 = EBITDA 335 75 119 EBITDA margin 18.1% 16.9% 24
Slide 27: T-Online unadjusted
T-Online unadjusted. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 445 449 453 504 1,851 493 10.8% Net revenue 394 402 413 453 1,662 453 15.0% EBITDA 75 101 84 75 335 119 58.7% EBITDA margin 16.9% 22.5% 18.5% 14.9% 18.1% 24.1% 7.2%p Depreciation and amortization -102 -105 -104
Slide 28: Special influences affecting T-Online
Special influences affecting T-Online. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on EBITDA 0 25 0 0 25 0 - of which gain on sale of t-info to T-Com 26 26 - of which AML -1 -1 Effect on Results of ordinary business activities 0 25 102 0 127 0 - of which write-up goodwill & proportionate eq
Slide 29: Group Headquarters & Shared Services adjusted for special influences
“Group Headquarters & Shared Services” adjusted for special influences. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 1,093 1,071 1,056 1,048 4,268 1,090 -0.3% Net revenue 62 81 82 79 304 80 29.0% EBITDA -10 -10 15 -311 -316 -130 n.a. - of which Vivento -39 -137 -153 -162 -491
Slide 30: EBITDA reconciliation in Group Headquarters & Shared Services
EBITDA reconciliation in “Group Headquarters & Shared Services”. € million FY/03 Q1/03 Q1/04 Total revenue 4,268 1,093 1,090 Results form ordinary business activities -4,071 -826 -1,156 - Financial income/expense, net -2,877 -679 -768 - Depreciation and amortization -881 -286 -212 - Other taxes -37
Slide 31: Group Headquarters & Shared Services unadjusted
“Group Headquarters & Shared Services“ unadjusted. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenue 1,093 1,071 1,056 1,048 4,268 1,090 -0.3% Net revenue 62 81 82 79 304 80 29.0% EBITDA 152 72 -9 -491 -276 -163 n.a. - of which Vivento 4 -49 -177 -212 -434 -250 n.a. EBITDA margin
Slide 32: Special influences affecting Headquarters & Shared Services
Special influences affecting “Headquarters & Shared Services”. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 Effect on EBITDA 162 82 -24 -180 40 -33 - of which gain on sale of EUTELSAT, UMC, Celcom, Satelindo, Inmarsat, Globe Telecom 119 20 113 252 - of which transfer payment Vivento 43 88 131 - of
Slide 33: Consolidated balance sheet. Assets
Consolidated balance sheet. Assets. Delta Delta € billion 1 31/03/03 30/06/03 30/09/03 31/12/03 31/03/04 q.o.q. y.o.y. Assets 105.0 101.2 98.8 95.7 95.5 -0.2 -9.5 Intangible assets 50.9 48.9 47.5 45.2 45.5 0.3 -5.4 Property, plant & equipment 50.4 48.8 47.8 47.3 46.7 -0.6 -3.7 Financial assets 3.8 3
Slide 34: Consolidated balance sheet. Shareholders' equity and liabilities
Consolidated balance sheet. Shareholders‘ equity and liabilities. Delta Delta € billion 1 31/03/03 30/06/03 30/09/03 31/12/03 31/03/04 q.o.q. y.o.y. Shareholders' equity 35.3 35.0 35.1 33.8 35.0 1.2 -0.3 Capital stock 10.7 10.7 10.7 10.7 10.7 0.0 0.0 Add. paid-in capital & ret. Earnings 44.3 43.6 43
Slide 35: Maturity profile
Maturity profile. Bonds and Medium Term Notes (MTN) maturities as of March 2004 (€ billion) 14 12 10.5 10 8.1 8.1 8 6 5.0 4 3.7 3.7 3.6 3.5 2.8 2 0.7 1.0 04 05 06 07 08 09 10 11 12 13 >13 year =======!"§ Unaudited Figures Page 35
Slide 36: Debt to net debt reconciliation
Debt to net debt reconciliation. Delta Delta € billion 1 31/03/03 30/06/03 30/09/03 31/12/03 31/03/04 q.o.q. y.o.y. Debt (in accordance with consolidated balance sheet) 2 62.8 61.2 59.6 55.4 53.4 -2.0 -9.4 Gross Debt 64.1 62.3 60.7 56.5 54.6 -1.9 -9.5 Liquid assets 6.9 8.5 10.7 9.1 9.2 0.1 2.3 Marke
Slide 37: Liquidity reserves
Liquidity reserves as of March 31st, 2003. € billion Liquidity reserves (€ billion) 26.7 80 Unused credit lines 70 n Syndicated loan DTAG 9.0 60 26.7 n Syndicated loan 50 T-Mobile UK 3.4 40 n Bilateral credit lines 4.6 71.3 Assets 9.7 30 20 44.6 Total line availability 10 Liquidity reserves 0 DT Gro
Slide 38: Capex split
Capex split. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. T-Com 317 451 517 844 2,129 384 21.1% T-Mobile 434 556 658 1,364 3,012 452 4.1% T-Systems 124 136 155 245 660 127 2.4% T-Online 8 10 18 45 81 12 50.0% GHS 52 64 89 211 416 57 9.6% Reconciliation -26 -21 -6 -11 -64 -13 50.0% Group 90
Slide 39: Consolidated statement of cash flows
Consolidated statement of cash flows. € million Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net profit/loss 853 256 508 -364 1,253 169 -80.2% Income applicable to minority shareholders 101 76 126 67 370 97 -4.0% Incom e/loss after taxes 954 332 634 -297 1,623 266 -72.1% Depreciation and amortizatio
Slide 40: Personnel development among the divisions
Personnel development among the divisions. End of period. Delta% 31/03/03 30/06/03 30/09/03 31/12/03 31/03/04 q.o.q. T-Com 143,116 140,233 137,559 129,644 125,256 -3.4% T-Mobile 41,478 41,108 41,788 43,427 43,527 0.2% T-Systems 43,070 41,920 41,566 40,833 40,240 -1.5% T-Online 2,659 2,663 2,634 2,61
Slide 41: Excellent market position
Excellent market position. Delta% m illion 1 31/03/03 30/06/03 30/09/03 31/12/03 31/03/04 q.o.q. Telephone channels Germany & abroad (incl. ISDN; DSL not included) 2 58.2 58.1 58.0 57.9 57.9 0.0% Of which: Germany 51.4 51.3 51.2 51.1 51.1 0.0% 3 Of which: Abroad 6.8 6.8 6.8 6.8 6.8 -0.1% DSL in oper
Slide 42: Exchange rates
Exchange rates. End of period. € 31/12/02 31/03/03 30/06/03 30/09/03 31/12/03 1 US-Dollar (USD) 0.95293 0.91744 0.87536 0.85573 0.79340 1 British Pound (GBP) 1.53635 1.44950 1,44510 1.43145 1.41663 100 Czechs Koruna (CZK) 3.18167 3.13185 3.17139 3.14179 3.08873 100 Croatian Kuna (HRK) 13.37340 13.03
Slide 43: Backup. T-Com
Backup. T-Com. =======!"§ Page 43
Slide 44: T-Com. Key operational performance
T-Com. Key operational performance. million1 Q1/04 Q1/03 % FY03 Q3/03 Q2/03 Broadband lines installed 4.5 3.3 36.4 4.1 3.8 3.5 – National T-DSL 4.4 3.2 37.5 4.0 3.7 3.4 – Eastern Europe DSL 0.14 0.05 180.0 0.11 0.08 0.06 Narrowband channels total 55.5 56.1 -1.1 55.5 55.6 55.9 National2 48.7 49.2 -1.
Slide 45: T-Com Central Eastern Europe. Key financial figures
T-Com Central Eastern Europe (CEE). Key financial figures. € million Q1/04 Q1/03 % Q2/03 Q3/03 Q4/03 FY03 Total reevnues CEE4 916 940 -2.6 966 985 964 3,855 Total adj. EBITDA CEE2, 4 424 437 -3.0 400 463 389 1,689 MATÀV1 Revenues 561 595 -5.7 606 598 592 2,391 Adj. EBITDA2 250 279 -10.4 250 269 222
Slide 46: T-Com CEE. Key financial figures on a comparable basis
T-Com Central Eastern Europe (CEE). Key financial figures on a comparable basis. € million Q1/04 Q1/03 % Q1/04 Q4/03 % Total revenues CEE4 951 940 1.2 913 964 -5.3 Total adj. EBITDA CEE2, 4 440 437 0.7 423 389 8.7 MATÀV1 Revenues 599 595 0.7 561 592 -5.2 Adj. EBITDA2 267 279 -4.3 250 222 12.6 Adj. E
Slide 47: T-Com Domestic. Call Minutes
T-Com Domestic. Call Minutes1. Minutes (billion)3 80 Jan.- Mar. 2003 70 Jan. – Mar. 2004 60 -11.4% 51.3 50 45.4 40 -18.5% 30 24.1 -6.2% -4.1% 19.6 20 14.5 13.9 9.9 9.3 -3.6% -11.5% 10 0.9 0.8 1.9 1.8 0 City/local Long Intern. Fixed-to- Other Total distance mobile services2 1 In the PSTN = Public Swi
Slide 48: T-Com Domestic. Call Prices
T-Com Domestic. Call Prices1. € per 100 minutes 3 -3.3% 30 Jan.-Mar. 2003 26.9 26.0 Jan.-Mar. 2004 25 -2.8% 20 18.9 18.3 15 10 -10.1% -3.0% -8.3% 1.1% 4.4 4.0 4.3 4.1 5 2.8 2.5 2.8 2.8 0 City/local Long Intern. Fixed-to- Other Total distance mobile services2 1 In the PSTN = Public Switched Telephone
Slide 49: T-Com Domestic. Call Revenues
T-Com Domestic. Call Revenues1. € million 3 3000 Jan.-Mar. 2003 -14.1% Jan.-Mar. 2004 2.185 2000 1,877 - 25.3% 1000 -15.6% -6.9% -3.1% 666 -14.1% 497 511 476 438 370 405 392 165 141 0 City/local Long Intern. Fixed-to- Other Total distance mobile services2 1 In the PSTN = Public Switched Telephone Ne
Slide 50: T-Com Domestic. Core-fixed line revenues
T-Com Domestic. Development of core-fixed line revenues* 4500 4000 3500 3000 2500 2000 1500 1000 Access revenues 500 Calling revenues 0 Total Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 *Calling revenues include only network communication part of revenues, i.e. excluding other services rev
Slide 51: T-Com Domestic. Development of calling minutes
T-Com Domestic. Development of calling minutes (quarterly)* 60000 50000 40000 30000 City/Local 20000 Long distance Intern. 10000 Fixed to mobile Other services 0 Total Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 *In the PSTN = Public Switched Telephone Network (T-Com traffic only, excl.T-Com internal use and publ
Slide 52: T-Com. Reduction of 30,125 personnel since Jan. 2002
T-Com. Reduction of 30,125 personnel since Jan., 2002. 30,125 155,381 -2,509 -3,766 23,850 149,106 -15,546 -3,916 129,644 -4,107 -281 125,256 01.01.02 Domestic1 Eastern 31.12.02 Domestic1 CEE 31.12.03 Domestic CEE 31.03.04 Europe 1 Incl. Cable companies. =======!"§ Unaudited Figures Page 52
Slide 53: T-Com Domestic. Access and call tariffs
T-Com Domestic. Access and call tariffs (incl. VAT)1. Cent/min. Monthly fee2 ® City ® Germany Mobile T-Net Standard 15.66 63 63 12.0 from 3.0 from 24.6 T-Net calltime 120 19.95 3.1 1.6 4.6 2.6 from 24.6 T-Net xxl 24.94 3.1 0-1.6 4.6 0-2.6 from 20 T-ISDN Standard 23.60 63 63 9.0 3.0 from 24.6 T-ISDN
Slide 54: T-Com Domestic. One, Two, Three Strategy
T-Com Domestic. One, Two, Three Strategy. Access line T-DSL 768/old1 kbit/s1 T-DSL 1000/new2 Kbit/s2 T-Net 19,99 € 768/128 16,99 € 1024/128 T-ISDN 12,99 € 768/128 16,99 € 1024/128 Access line T-DSL 1500/old3 kbit/s3 T-DSL 2000/new4 Kbit/s4 T-Net 29,98 € 1536/192 19,99 € 2048/192 T-ISDN 22,98 € 1536/
Slide 55: T-Com Domestic. T-DSL: Attractive benefits and prices
T-Com Domestic. T-DSL: Attractive benefits and prices.5,6 Total price T-DSL tariff components (telephone and T-DSL access), € Access line1 T-DSL T-DSL T-DSL Telephone T-DSL T-DSL T-DSL 10002 20003 30004 access line 10002 20003 30004 T-Net 16,99 19,99 24,99 15,66 32,65 35,65 40,65 T-Net calltime 120
Slide 56: T-Com Domestic Hot Spot price model
T-Com Domestic Hot Spot price model. Product launched Product launched in cooperation with T-Mobile in March, 2004 in March, 2004 For T-DSL Users Prepaid-Voucher2 HotSpot 1801 1h 3h 24h Till From 30/9/2004 1/10/2004 Premises T-DSL T-DSL No No No Tíme included 3h 3h n.a. n.a. n.a. Price/min. Germany
Slide 57: T-Com Domestic. T-DSL Business: new tariffs
T-Com Domestic. T-DSL Business: new tariffs. 137,26 € Launched in January, 2004* 116,97 € T-DSL Business 3000 Flatrate 57,99 € T-DSL Business 83,58 € 2000 Flatrate 57,99 € T-DSL Business “Heavy user“ 1000 Flatrate tariff option 29,99 € T-DSL Business, T-DSL Business T-DSL Business, 3000 incl. 5 GB T
Slide 58: T-Com Domestic. T-DSL Business symmetric: new tariffs
T-Com Domestic. T-DSL Business symmetric: new tariffs. Launched in January, 2004* T-DSL Business symmetric 1024 2048 Downstream Up to 1,024 kbit/s Up to 2,048 kbit/s Upstream u Up to 1,024 kbit/s Up to 2,048 kbit/s One-off installation fee 404,84 € 404,84 € Monthly fee 114,84 € 138,04 € Volumes incl
Slide 59: T-Com Domestic. Interconnection fees
T-Com Domestic. Interconnection fees (excl. VAT)1. Peak Peak Off-peak Off-peak (18:00- € billion2 (9:00 –18:00), (9:00-18:00), (18:00-9:00), 9:00), old new old new Termination /Origination fees Local 0.65 0.59 0.44 0.40 Single transit 1.07 0.96 0.71 0.64 Double transit national 1.86 1.52 1.22 0.99 T
Slide 60: Backup. T-Mobile
Backup. T-Mobile. =======!"§ Page 60
Slide 61: T-Mobile. Customer data
T-Mobile. Customer data (majority holdings only). m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) Europe1 44,299 45,097 45,578 47,934 47,934 49,137 10.9% USA 10,837 11,443 12,113 13,128 13,128 14,303 32.0% 1 Total 55,136 56,540 57,691 61,062 61,062 63,440 15.1% Contra
Slide 62: T-Mobile Germany. Key operating data
T-Mobile Germany. Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) 24,885 25,258 25,628 26,333 26,333 26,681 7.2% - Contract 11,703 11,902 12,128 12,569 12,569 12,763 9.1% - Prepay 13,182 13,355 13,500 13,764 13,764 13,918 5.6% Net adds 303 373 370
Slide 63: T-Mobile Germany. Key financial data
T-Mobile Germany. Key financial data. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 1,995 2,094 2,208 2,182 8,479 2,121 6.3% EDITDA (million) 814 874 953 957 3,598 773 -5.0% EBITDA margin 40.8% 41.7% 43.2% 43.9% 42.4% 36.4% -4.4%p SAC 104 99 85 87 93 94 -9.6% - Contract 172 1
Slide 64: T-Mobile UK. Key operating data
T-Mobile UK. Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers1 (end of period) 12,212 12,500 12,386 13,636 13,636 14,343 17.5% - Contract 2,339 2,400 2,523 2,684 2,684 2,743 17.3% 1 - Prepay 9,873 10,100 9,863 10,952 10,952 11,600 17.5% 1 Net adds -234 287 -113 1,2
Slide 65: T-Mobile UK. Key financial data
T-Mobile UK. Key financial data. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 1,036 1,060 1,090 1,117 4,303 1,133 9.4% EDITDA (million) 278 267 260 255 1,060 385 38.5% EBITDA margin 26.8% 25.2% 23.9% 22.8% 24.6% 34.0% 7.2%p SAC 155 125 143 115 133 143 -7.7% - Contract 371 32
Slide 66: T-Mobile Austria. Key operating data
T-Mobile Austria. Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) 2,027 2,042 2,033 2,031 2,031 2,012 -0.7% - Contract 929 947 946 950 950 941 1.3% - Prepay 1,098 1,095 1,087 1,081 1,081 1,071 -2.5% Net adds -9 15 -9 -2 -5 -18 -100.0% - Contract 0
Slide 67: T-Mobile Austria. Key financial data
T-Mobile Austria. Key financial data1. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 273 259 277 289 1,098 236 -13.6% EDITDA (million) 95 74 80 91 340 55 -42.1% EBITDA margin 34.8% 28.6% 28.9% 31.5% 31.0% 23.3% -11.5%p SAC 122 140 81 135 121 155 27.0% - Contract 201 214 185 2
Slide 68: T-Mobile CZ Key operating data
T-Mobile CZ Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) 3,550 3,607 3,691 3,947 3,947 3,991 12.4% - Contract 721 766 814 889 889 947 31.3% - Prepay 2,829 2,841 2,877 3,058 3,058 3,044 7.6% Net adds 40 57 84 256 438 43 7.5% - Contract 49 45 48 7
Slide 69: T-Mobile CZ Key financial data
T-Mobile CZ Key financial data. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 180 189 195 204 768 186 3.3% EDITDA (million) 90 84 88 77 339 84 -6.7% EBITDA margin 50.0% 44.4% 45.1% 37.7% 44.1% 45.2% -4.8%p SAC 32 41 24 31 32 27 -15.6% - Contract 77 97 84 77 83 65 -15.6% - Pre
Slide 70: T-Mobile Netherlands. Key operating data
T-Mobile Netherlands. Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) 1,626 1,690 1,840 1,987 1,987 2,109 29.7% - Contract 770 796 849 901 901 986 28.1% - Prepay 855 894 991 1,085 1,085 1,123 31.3% Net adds 190 65 150 147 550 123 -35.3% - Contract
Slide 71: T-Mobile Netherlands. Key financial data
T-Mobile Netherlands. Key financial data. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 182 219 225 235 861 250 37.4% EDITDA (million) -27 33 9 30 45 1 n.a. EBITDA margin -14.8% 15.1% 4.0% 12.8% 5.2% 0.4% 15.2%p SAC 231 95 128 123 146 237 2.6% - Contract 362 275 289 291 316 3
Slide 72: T-Mobile USA. Key operating data
T-Mobile USA. Key operating data. m illion Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Customers (end of period) 10,837 11,443 12,113 13,128 13,128 14,303 32.0% - Contract 9,459 10,111 10,805 11,696 11,696 12,784 35.2% - Prepay 1,378 1,332 1,308 1,432 1,432 1,519 10.2% Net adds 927 606 670 1,015 3,
Slide 73: T-Mobile USA. Key financial data (German GAAP)
T-Mobile USA. Key financial data (German GAAP)1. € Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 1,682 1,767 1,974 1,993 7,416 2,070 23.1% EDITDA (million) 323 443 429 311 1,506 405 25.4% EBITDA margin 19.2% 25.1% 21.7% 15.6% 20.3% 19.6% 0.4%p SAC 183 178 196 189 187 177 -3.3%
Slide 74: T-Mobile USA. Key financial data (German GAAP) in US$
T-Mobile USA. Key financial data (German GAAP) in US$1. US$ Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Net revenues (million) 1,805 2,006 2,221 2,368 8,400 2,589 43.4% EDITDA (million) 347 502 482 370 1,702 507 46.1% EBITDA margin 19.2% 25.1% 21.7% 15.6% 20.3% 19.6% 0.4%p SAC 196 202 220 224 211 2
Slide 75: T-Mobile USA. Key financial data (U.S. GAAP) in US$
T-Mobile USA. Key financial data (U.S. GAAP) in US$1. US$ Q1/03 Q2/03 Q3/03 Q4/03 FY/03 Q1/04 % y.o.y. Total revenues (million) 1,787 2,000 2,216 2,355 8,358 2,597 45.3% Service revenues2 (million) 1,560 1,772 1,902 1,986 7,219 2,208 41.5% OIBDA3 (million) restated for new def. 307 501 461 327 1,597
Slide 76: T-Mobile USA. US GAAP reconciliation: CCPU
T-Mobile USA. US GAAP reconciliation: CCPU1. The cost of serving customers, or cash cost per user (“CCPU”), includes all network and general and administrative costs divided by the average total customers during the period. We believe CCPU is an operating measure of the cost of serving a customer, a
Slide 77: T-Mobile USA. US GAAP reconciliation: CPGA
T-Mobile USA. US GAAP reconciliation: CPGA. Cost per Gross Add (“CPGA“) is calculated by dividing the costs of acquiring a new customer, consisting of customer acquisition costs plus the subsidy loss on customer acquisition related to equipment sales, divided by gross customers added during the quar
Slide 78: T-Mobile USA. US GAAP reconciliation: OIBDA and OIBDA margin
T-Mobile USA. US GAAP reconciliation: OIBDA and OIBDA margin. OIBDA is a non-GAAP financial measure, which we define as operating income before depreciation and amortization. In a capital-intensive industry such as wireless telecommunications, we consider growth in OIBDA as well as improvements in O
Slide 79: Backup. T-Systems
Backup. T-Systems. =======!"§ Page 79
Slide 80: T-Systems. Focus on profitability
T-Systems. Focus on profitability. € million Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Total revenue 2,560 2,567 5,127 2,617 7,744 2,870 5,487 10,614 2,475 1 thereof international 682 684 1,367 701 2,068 784 1,486 2,852 689 Adj. EBITDA 286 337 623 393 1,016 399 792 1,415 301 Adj. EBIT
Slide 81: T-Systems. Summary IT and TC
T-Systems. Summary IT and TC. IT € million Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Total revenue 1,316 1,320 2,636 1,356 3,992 1,589 2,945 5,581 1,323 Adj. EBITDA 222 237 459 264 723 295 559 1,018 235 Adj. EBITDA margin 16.9% 18.0% 17.4% 19.4% 18.1% 18.6% 19.0% 18.2% 17.8% Capex 92
Slide 82: T-Systems. Key figures Computing Services
T-Systems. Key figures Computing Services. € million Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Total revenue 569 592 1,161 596 1,757 669 1,266 2,427 591 Adj. EBITDA 163 182 345 199 544 209 407 752 175 Adj. EBITDA margin 28.7% 30.7% 29.7% 33.3% 30.9% 31.2% 32.2% 31.0% 29.6% Capex 72 84
Slide 83: T-Systems. Key figures Desktop Services
T-Systems. Key figures Desktop Services. € million Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Total revenue 324 285 609 308 916 405 712 1,321 326 Adj. EBITDA 21 29 50 24 74 38 62 112 22 Adj. EBITDA margin 6.4% 10.3% 8.2% 7.9% 8.1% 9.3% 8.7% 8.5% 6.8% Capex 6 4 11 18 29 24 42 53 17 Cash
Slide 84: T-Systems. Key figures Systems Integration
T-Systems. Key figures Systems Integration. € million Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Total revenue 423 443 866 452 1,318 515 967 1,833 406 Adj. EBITDA 38 26 64 41 105 49 90 154 38 Adj. EBITDA margin 0 0 0 0 0 0 0 0 0 Capex 14 -3 12 8 20 10 18 30 8 Cash contribution 24 28 53
Slide 85: T-Systems. Key figures Network Services
T-Systems. Key figures Network Services. Revenue (€ m illion) Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 1 NWS global 836 823 1,659 654 2,313 862 1,515 3,175 734 1 ICSS global 347 376 723 493 1,215 319 812 1,535 350 1 Media Broadcast 140 144 284 131 415 147 278 562 123 2 Total 1,244 1,
Slide 86: T-Systems. Revenue Breakdown by Geography
T-Systems. Revenue Breakdown by Geography. Revenue Q1/03 Q2/03 HY1/03 Q3/03 Q3 kum Q4/03 HY2/03 FY/03 Q1/04 Germany 73.3% 73.3% 73.3% 73.2% 73.3% 72.7% 72.9% 73.1% 72.1% Europe 13.6% 13.7% 13.6% 12.3% 13.2% 13.9% 13.1% 13.4% 15.1% thereof Western Europe 12.8% 13.0% 12.9% 11.6% 12.5% 12.9% 12.3% 12.6
Slide 87: T-Systems
T-Systems. Sales Q1/041 Employees Q1/042 Rest of World Rest of World 2.9 bn € 9,195 Germany Germany 7.7 bn € 31,045 total: € 10.6bn € Total: 40,2403 1 Calculated and rounded, based on exact figures. 2 Headcount at the end of period. 3 includes Service Lines, Industry Lines and central functions. ===