Q1/09 – Conference Call. Deutsche Telekom. May 7, 2009
Disclaimer. This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They include, among others, statements as to market potential and financial guidance statements, as well as our dividend outlook. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA, earnings, operating profitability or other performance measures, as well as personnel related measures and reductions. Forward-looking statements are based on current plans, estimates and projections. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control, including those described in the sections “Forward-Looking Statements” and “Risk Factors” of the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. Among the relevant factors are the progress of Deutsche Telekom’s workforce reduction initiative, restructuring of its German operations and the impact of other significant strategic or business initiatives, including acquisitions, dispositions and business combinations and cost-saving initiatives. In addition, regulatory rulings, stronger than expected competition, technological change, litigation and supervisory developments, among other factors, may have a material adverse effect on costs and revenue development. Further, changes in general economic and business conditions, including the significant economic decline currently underway, in the markets in which we and our subsidiaries and associated companies operate and ongoing instability and volatility in worldwide financial markets; changes in exchange and interest rates, may also have an impact on our business development and availability of capital under favorable conditions. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom’s actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Deutsche Telekom does not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. Deutsche Telekom does not reconcile its adjusted EBITDA guidance to a GAAP measure because it would require unreasonable effort to do so. As a general matter, Deutsche Telekom does not predict the net effect of future special factors because of their uncertainty. Special factors and interest, taxes, depreciation and amortization (including impairment losses) can be significant to Deutsche Telekom’s results. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways. For further information relevant to the interpretation of these terms, please refer to the chapter “Reconciliation of pro forma figures”, which is posted on Deutsche Telekom’s Investor Relations webpage at www.telekom.com. 2
Agenda. Deutsche Telekom Investor Presentation. Introduction Stephan Eger Head of Investor Relations Q1/09 Highlights & Operations René Obermann CEO Q1/09 Financials Timotheus Höttges CFO � Q&A: If you like to ask a question, please press “* 1” on your touchtone telephone � For remaining questions please contact the IR department after the call 3
Q1/09. Highlights & Operations. René Obermann, CEO
Q1/09 Highlights. � Revenue increased +6.2% incl. OTE. Revenue growth of 6% � Adj. EBITDA + 2.7% incl. OTE. € billion +6% � “Save for Service” on track: €4.4 billion run rate achieved. � Good progress in German and CEE fixed business. 15.9 +0.2 -0.3 � Adj. EBIT turn around at Systems Solutions (T-Systems). Currency 15.0 Organic � German mobile business stable. +1.0 Acquisitions � Most CEE mobile assets with stable EBITDA-Margins. Q1/08 Q1/09 � Action plan being implemented for the US, the UK and Adj. EBITDA growth of 3% Poland. € billion +3% � Free cash flow impacted by front-loaded capex/opex spending and higher restructuring payments. 4.8 4.7 +0.05 � Organic EBITDA impacted by opex, customer growth front -0.3 +0.4 Currency Organic loading and FX. Acquisitions � Net income impacted by goodwill write-down at TMUK. Q1/08 Q1/09 5
Improve competitive- Grow German fixed: ness in abroad with Germany mobile and SEE Best retail broadband net add market share since 2005. Build Mobilize the network internet centric ICT Domestic Broadband Retail customer base (in ‘000) Domestic PSTN customer base (in ‘000) +44% -14% 12.000 35.000 30.000 10.000 25.000 8.000 20.000 6.000 15.000 4.000 10.000 2.000 5.000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2007 2008 2009 Domestic broadband net add share* by competitor Domestic broadband lines in million Alternative infrastructure operators 2) 23.8 23.1 22.3 21.6 2.0 T-Home 20.8 1.8 1.6 53% 1.4 Cable x.x Cable operators 1.3 8.2 7.5 7.9 ULL, others 7.1 6.6 0.3 0.2 0.1 IP-BSA unb. 2.2 40 3.2 2.9 2.5 3.4 BBFN Resale 11.0 10.2 10.6 9.9 BBFN Retail 9.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 DTAG retail net 2006 2007 2008 2009 43% 40% 49% 50% 53% add market share 1) 1 Net add market share for 2008 adjusted based on new BNetzA figures, 2009 own estimates. Rounded figures. ²Incl. reseller (competitor resale and T-Home resale); *DTAG view (retail). 6
Improve competitive- Grow SEE fixed: Continued broadband growth with stable margins. ness in abroad with Germany mobile and SEE Build Mobilize the network internet centric ICT SEE fixed line adj. EBITDA and margin Headcount in SEE fixed line € million In ‘000 FTEs 42.1%* 40.0 42.4% 43.1% 43.2% 37.7% 37.6% 400 18.1 17.7 25.0 17.1 16.5 15.7 181 268 15.4 15.3 15.1 248 239 215 219 15.0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 * excl. OTE 2007 2008 2009 Broadband customer base (in ‘000) PSTN customer base (in ‘000) 12,636 3,485 7,460 1,715 5,404 5,402 5,331 5,262 1,710 1,608 1,551 1,488 5,176 1,770 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 OTE contribution 7
Improve competitive- Grow International Mobile: Revenue growth thanks to OTE. ness in abroad with Germany mobile and SEE Build Mobilize the network internet centric ICT Revenue Mobile (excl. Germany) � 12% revenue growth driven by € billion OTE and FX. +12% � More than 70% of organic adj. 7.3 EBITDA decline driven by the US, 0.0 6.6 the UK and Poland. +0.2 Organic Currency +0.6 � 148 million total mobile customer Acquisitions base (incl. Germany) Q1/08 Q1/09 Adj. EBITDA Mobile (excl. Germany) € billion -1% +0.05 2.0 US 1.9 Currency UK +0.2 -0.1 Poland & other -0.1 Acquisitions -0.1 -0.3 Organic Q1/08 Q1/09 8
Improve competitive- Grow SEE: Apart from Poland high margin levels stabilized. ness in abroad with Germany mobile and SEE Build Mobilize the network internet centric ICT � Ongoing strong or improved margins. Revenue in local currency (Q1/08 vs. Q1/09) � Healthy revenue trends in Croatia, Slovakia, and FYROM. Change in % +5% � Poland with stable revenues outperforming peers. -4% � Stable contract churn rates: -4% � PL 0.6% after 0.7%; 0% � CZ 0.6% after 0.5%; +3% +9% � Remaining CEE countries 1.1% after 0.9%. PL HU HR Mac SLK CZ Adj. EBITDA Margins in % (Q1/08 vs. Q1/09) 52 53 51 48 48 46 44 44 41 43 35 26 PL HU HR Mac SLK CZ 9
Improve competitive- Grow Mobilize the Internet: ness in abroad with Germany mobile and SEE Accelerated double digit data revenue growth. Build Mobilize the network internet centric ICT Quarterly data revenue (Europe w/o OTE) 2 Quarterly data revenue (USA) 3 +44% +30% w/o messaging (in € million) w/o messaging (in US$ million) +16% 467 432 409 +39% 421 379 391 371 358 338 350 326 301 318 278 261 309 240 216 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2007 2008 2009 Data ARPU excl. messaging (Europe w/o OTE 1 ) Data ARPU incl. messaging (USA) 9.40 (in €) 1.80 (in US$) 9.30 1.70 8.90 1.50 1.50 8.60 8.50 1.30 1.30 1.30 8.20 8.10 1.20 7.80 1.10 7.50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2007 2008 2009 1 Germany, UK, Netherlands, Austria, Czech Republic. 2 Germany, UK, Netherlands, Austria, Czech Republic, Poland, SEE 3 Incl. reallocation of access revenue (mainly WiFi in USA) between Q1/07 and Q2/07. 10
Recommend
More recommend
