Deutsche Telekom Ag · XETR:DTE

Deutsche Telekom — Q3 2012 Earnings Presentation

22 slides from Deutsche Telekom's earnings presentation, Nov 8, 2012

  1. Slide 1: Q3/12 – Results Presentation

    Q3/12 – Results Presentation. For smartphone and tablet users: just scan this QR-code and Deutsche Telekom. get directly to the Q3-2012 IR webpage. November 8, 2012

  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 AdditionalInformation Informationand andWhere Whereto toFind FindItIt This Thisdocument documentalso alsorelates relatestotoaaproposed proposedtransaction transactionbetween betweenMetroPCS MetroPCSCommunications, Communications,Inc. Inc.(“MetroPCS”) (“MetroPCS”)and

  4. Slide 4: Agenda

    Agenda. Deutsche Telekom Results Presentation. René Obermann CEO Timotheus Höttges CFO 4

  5. Slide 5: Q3 2012 Results

    Q3 2012 Results. Life’s for Sharing 2) nas

  6. Slide 6: Q3 2012: We continue to deliver

    Q3 2012: We continue to deliver.  Solid 3rd quarter financials, full year guidance re-iterated:  Stable group revenue of €14.7 billion (-0.1%), supported by currency Group  Adj. EBITDA of €4.8 billion (-2.6%) – as announced with higher commercial expenses  Q1-Q3 FCF1 at €5.1 billion (+13.2%) – o

  7. Slide 7: Q3/12 Key financials

    Q3/12 Key financials: Revenue stable, strong adj. EBITDA and free cash flow net income impacted by impairment in the US. € million Q3/11 Q3/12 change 9M/11 9M/12 change Revenue 14,670 14,651 -0.1% 43,742 43,462 -0.6% Adj. EBITDA 4,907 4,777 -2.6% 14,074 13,951 -0.9% Adj. net profit3 1,291 926 -28.3%

  8. Slide 8: Q3/12 Overview

    Q3/12 Overview. Revenue (€ million) Adj. EBITDA (€ million) -0.1% -2.6% 14,670 14,651 4,907 4,777 445 -464 108 -238 Q3/11 F/X Organic Q3/12 Q3/11 F/X Organic Q3/12 Revenue Q3/11 vs. Q3/12 (€ million) Adj. EBITDA Q3/11 vs. Q3/12 (€ million) 5,810 Germany 2,463 Germany 2,401 5,736 USA 1,025 USA 3,683

  9. Slide 9: Germany: improved revenue trends in mobile, margin and opex

    Germany: improved revenue trends in mobile, margin and opex influenced by around € 100 million more market investment mainly in mobile. Germany revenues (€ million) Adj. EBITDA (€ million) and margin (%) Mobile Core fixed Wholesale services Others -2.5% 2,463 2,343 2,348 2,401 -1.3% 2,294 5,810 5,81

  10. Slide 10: Germany – Mobile: continued improvement in service revenue trends

    Germany – Mobile: continued improvement in service revenue trends. Mobile service revenue (€ million) Mobile data revenue (€ million) and as % of serv. revenue -0.5% +21.2% 440 462 484 498 411 28% 29% 28% 1,758 1,660 1,690 1,749 23% 25% 1,728 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/

  11. Slide 11: Germany – fixed: fiber and Entertain upsale strategy protects ARPA

    Germany – fixed: fiber and Entertain upsale strategy protects ARPA. Broadband access lines (million) and market share1 Broadband access lines (in 000) 45.5% 45.3% 45.1% 44.9% 44.9% Q3/11 Q3/12 +2% 26.8 27.1 27.4 27.6 27.7 3.4 3.5 3.8 3.9 4.1 12,201 12,424 +39% Market share 11.3 11.3 11.3 11.3 11.1 +

  12. Slide 12: US: very strong branded no contract net adds

    US: very strong branded no contract net adds – branded contract ARPU & service revenues impacted by transition to Value plans. Service revenues (US$ million) Net adds (‘000) 126 187 160 -8.4% Total net adds 4,525 4,413 4,309 4,266 4,146 -205 -526 Branded: Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 - Contract -38

  13. Slide 13: Combination with MetroPCS: create the value leader in wireless

    Combination with MetroPCS: create the value leader in wireless. Strengthens DT’s  Strengthened spectrum position to roll out 4G LTE Strategic Position in Attractive U.S.  NewCo with attractive growth profile with projected 3-5% 5-year revenue CAGR, 7-10% Market EBITDA CAGR, and 15-20% free cash fl

  14. Slide 14: Europe: impacted by economy, regulation and special taxes

    Europe: impacted by economy, regulation and special taxes. Organic revenue development (€ million) Organic adj. EBITDA development (€ million) -5.2% -3.8% 3,873 3,654 3,671 1,388 1,328 1,335 219 17 60 7 Q3/11 change Q3/12 f/x Q3/12 f/x Q3/11 change Q3/12 f/x Q3/12 f/x reported adjusted reported adju

  15. Slide 15: Europe: overview of revenue and adj. EBITDA development

    Europe: overview of revenue and adj. EBITDA development. Change in revenue Q3/12 over Q3/11 in % 5.9 without f/x, mobile regulation and special taxes f/x adjusted 3.7 4.1 1.7 0.5 -0.2 -1.1 -3.5 -3.9 -3.0 -3.1 -3.8 -5.2 -6.4 -6.7 -7.4 -8.1 -8.9 -10.9 -11.3 CZ HU NL PL RO Europe AT SK HR GR Change in

  16. Slide 16: Systems Solutions: revenue driven by Telekom IT – profitability progress

    Systems Solutions: revenue driven by Telekom IT – profitability progress. Revenue (€ million)  Deal highlights in Q3/12 -10.7% External 2,694  Catalan government, Clariant, BP 2,513 2,456 2,486 Internal 2,245 - thereof Telekom IT  External revenue up by 0.8% to € 1,600 million 1,587 1,726 1,614 

  17. Slide 17: Free cash flow: €5.1 billion in first 9 months

    Free cash flow: €5.1 billion in first 9 months – guidance of around €6 billion for full year confirmed. Free Cash Flow1 Q3 over Q3 and development in 9M (€ million)  Free cash flow in Q3 benefited from 0.3 billion of less interest payments and 0.2 billion lower capex. +37% +13%  Investments are ex

  18. Slide 18: Net profit in Q3/12 impacted by impairment loss in the US

    Net profit in Q3/12 impacted by impairment loss in the US. Adj. net profit and net profit Q3/11 over Q3/12 (€ million)  Net profit predominantly impacted by impairment loss in the US following the 926 announcement of the merger agreement with Metro PCS  The write down is a result of IFRS standard

  19. Slide 19: Balance sheet ratios: net debt and net debt over EBITDA improved

    Balance sheet ratios: net debt and net debt over EBITDA ratio improved – impairment in the US impacting equity and gearing. in € billion 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 Balance sheet total 124.6 122.5 120.5 121.1 108.2 Shareholders’ equity 40.7 39.9 39.8 37.6 30.3 Net debt 43.

  20. Slide 20: Q3 2012 results conference call. Q&A

    Deutsche Telekom’s Q3 2012 results conference call. Q&A. Questions can be asked via the telephone conference call: 0800 182 6766 0800 028 0471 +1 866 306 3455 +49 69 403 59 619. If you want to ask a question, please press “*1”. If you want to cancel your question, please press “#”. 20

  21. Slide 21: Investor Relations contacts

    For further questions please contact the IR department: Investor Relations, Bonn office Investor Relations, New York office Phone +49 228 181 - 8 88 80 Phone +1 212 424 2959 E-Mail [email protected] Phone +1 877 DT SHARE (toll-free) E-Mail [email protected] For further infor

  22. Slide 22: Thank you for your attention!

    Thank you for your attention! 22

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