GTS AND DT PRESS CONFERENCE GTS AND DT 1+1>2 Claudia Nemat - PowerPoint PPT Presentation

GTS AND DT PRESS CONFERENCE

GTS AND DT 1+1>2 Claudia Nemat Board Member Europe & Technology Warsaw, 11.06.2014

DT AMBITION LEADING EUROPEAN TELECOMMUNICATIONS PROVIDER LEADING TELCO BEST INTEGRATED WIN WITH LEAD IN CUSTOMER IP NETWORKS PARTNERS BUSINESS EXPERIENCE

THE ROLE OF GTS INTEGRATED NETWORKS & PUSH B2B LEADING TELCO INTEGRATED LEAD IN IP NETWORKS BUSINESS

WHY B2B? B2B IS ONE OF OUR BLUE OCEAN TOPICS WE WANT TO CAPTURE THE GROWTH OPPORTUNITY! � Defend core business � Growth potential B2B � Fix Operations Basics & Fixed Mobile Cloud Convergence (FMCC) � Service Quality & Customer Care � Develop new services / win with partners � Inorganic growth

OUR AMBITION LET’S CAPTURE THE B2B GROWTH AND TRANSFORM THE REVENUE MIX! Revenue Transformation Europe � Focus on pockets of growth Q1 2013 Q1 2014 2014e 26% 32% 33% ICT/mobile Data ICT/mobile Data ICT/mobile Data 74% 68% 67% mobile/fixed mobile/fixed mobile/fixed

PERFECT FIT OF GTS & DT BEST REGIONAL FIT FOR INTEGRATED BUSINESS OFFERS � Most comprehensive network coverage in Central Europe � Combined fixed and mobile offers in 10 European countries available � More than 12.000 corporate clients in PL and CZ � More than 200.000 km fiber networks with Interconnection in Europe, North America or Asia Pacific � Larger portfolio of innovative products and services plus a strong ICT competence with 90 data centers worldwide DT Footprint Combined Footprint GTS Partner Networks

GTS & DT: FIRST PRAGMATIC ACTIONS QUICK WINS AND JOINT APPROACH ? Deal board � Deal boards established to coordinate acquisition pipelines $ Cross-sell � Simple and effective cross-sell strategy � Joint approach of sales teams to customers � Optimization of procurement, GTS leases migrated to DT, equipment Quick wins usage optimization, DSLAM consolidation � Joint teams set-up and already working on implementation

GTS & DT: OUTLOOK POTENTIAL IN POLAND & CZECH Number of Corporate Clients 1 Smart offering of T-Mobile products to GTS–only customers 1 200 Clients of both GTS and T-Mobile will be served jointly 1 500 Cross-sell of GTS products to T-Mobile-only Customers, sales provided by joint teams 10 000 Joint acquisition approach towards new/3rd- party customers New 20 000+ Potential 1. Approximate, based on local customer segmentation, corporate Customers define as having ~ 800 EUR/month potential revenue in PL or 800 EUR/month actual revenue in CZ Source: TMP, TMCZ finace & controlling, GTS

GTS & DT: OUTLOOK FOCUS ON PRODUCTS � IP Communications – reliable & future-proof IP-products Unified Communication and Collaboration with flexible and scalable on demand deployment (seats, bandwidth, lines "on demand"), Hosted PBX (virtual company -communication-system) � FMCC – powerful tools for expanding local & regional businesses Virtual Workspace bundles (mobile, fixed, Cloud, IT, Hardware, and maintenance at a monthly fee), Mobile Backup (e.g., 3G backup for DSL line based on hybrid CPE/Router) � Enterprise Mobility – providing mobile solutions for businesses across Europe Mobile Device Management (managing access to devices, content and applications on devices – prerequisite for mobilizing the business). Expense Management (centrally managing telco spend across the footprint). WiFi Client (especially outside of Europe e.g. in hotels, airports etc. using WiFi instead of mobile network)

GTS & DEUTSCHE TELEKOM THE EUROPEAN PLAYER FOR REGIONAL & LOCAL BUSINESS GTS/DT � Leading integrated player in central Europe: 10 countries with integrated networks. � Focus on European Innovation: Innovation center in Berlin, Budapest, Krakow. Best regional fit for integrated business offers: � Potential of more than 20.000 new corporate customers (PL/CZ).

GTS & DT Thank You!

GTS Central Europe Deutsche Telekom Press Conference Warsaw, Poland 11 June 2014

GTS at a Glance • A leading alternative network telecommunications services provider in Central and Eastern Europe (CEE) • 28 000 satisfied customers • 1 100 committed employees • Diverse product offerings to serve wide range of customer demands Simple fixed to cloud services • • Extensive network with fiber and data centers throughout CEE • History of solid financial performance Revenues of €337m (2013) Deutsche Telekom • Combined EBITDA of €88m (26%) • GTS Partner EBITDA less Capex of €44m (13%) •

Benefits to Deutsche Telekom � Customers – most important asset who demand solutions not services � Access Networks – allows control of both quality of service and costs � Regional Footprint – network optimized to operate as one � Products – fixed complements mobile and strong ICT potential � Operating Model – simple processes designed to enable sales � Company Mindset – startup with competitive spirit and fiscal discipline � Employees – experienced people who think regionally yet act local

Customer Synergy Quick Win Global Retail Company IBU network to enable T-Mobile PL network to provide high capacity services diversity and increased between regional Prague bandwidth to 25% of stores HQs and global London HQs ~490 stores ~410 stores ~165 stores Magyar Telekom network and ICT service for digital ethernet services to enable archiving of contracts ~235 stores bandwidth upgrades developed in CZ to be to 30% of stores deployed in SK

Questions & Answers Thank You!