Deutsche Telekom Company Presentation for Download
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Deutsche Telekom Company presentation 2021 Disclaimer This presentation contains forward-looking statements that reflect the materialize, or if the assumptions underlying any of these statements prove current views of Deutsche Telekom management with respect to future incorrect, our actual performance may materially differ from the events. These forward-looking statements include statements with regard performance expressed or implied by forward-looking statements. We can to the expected development of revenue, earnings, profits from operations, offer no assurance that our estimates or expectations will be achieved. depreciation and amortization, cash flows, and personnel-related measures. Without prejudice to existing obligations under capital market law, we do You should consider them with caution. Such statements are subject to risks not assume any obligation to update forward-looking statements to take and uncertainties, most of which are difficult to predict and are generally new information or future events into account or otherwise. beyond Deutsche Telekom’s control. Among the factors that might In addition to figures prepared in accordance with IFRS, Deutsche Telekom influence our ability to achieve our objectives are the progress of our also presents alternative performance measures, including, among others, workforce reduction initiative and other cost-saving measures, and the EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA after leases, impact of other significant strategic, labor, or business initiatives, including adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash acquisitions, dispositions and business combinations, and our network flow, free cash flow after leases, gross debt, net debt after leases, and net upgrade and expansion initiatives. In addition, stronger than expected debt. These alternative performance measures should be considered in competition, technological change, legal proceedings, and regulatory addition to, but not as a substitute for, the information prepared in developments, among other factors, may have a material adverse effect on accordance with IFRS. Alternative performance measures are not subject to our costs and revenue development. Further, the economic downturn in our IFRS or any other generally accepted accounting principles. Other markets, and changes in interest and currency exchange rates, may also companies may define these terms in different ways. have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties 2 Company presentation 01 Profile 02 Strategy & Transformation 03 Network, Products & Innovation 04 Service & Brand Brief and simple Our keyfacts 226,291 27.4 mn employees worldwide* fixed-network lines € 101.0 bn revenue in 2020 21.7 mn broadband customers 241.8 mn mobile customers Figures based on annual report 2020. 4 * Reporting date December 31, 2020 Deutsche Telekom Profile Customers Markets Numbers Employees & responsibility • 241.8 mn mobile customers • Present in > 50 countries • Revenue € 101.0 bn • Employees worldwide: 226,291 • 27.4 mn fixed-network lines • Germany, Europe and the USA: • Adjusted EBITDA AL1 (Reporting date Dec. 31, 2020) • 21.7 mn broadband lines with own infrastructure € 35.0 bn • 4,905 trainees and cooperative 1 degree students in Germany • Approx. 8.9 mn TV customers • T-Systems: global presence & • Free Cashflow AL € 6.3 bn alliances via partners • Pioneer of social issues (climate protection, data privacy, diversity, etc.) Figures based on annual report 2020. 1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases. Profile Strategy & Transformation Network, Products & Innovation Service & Brand 5 Facts & figures Germany 48.5 mn mobile customers 14.1 mn broadband lines 3.9 mn IPTV customers incl. satellite € 23.8 bn revenue € 9.2 bn EBITDA AL1 adjusted 66,051 employees (Reporting date Dec. 31, 2020) 89,032 employees in Germany overall (Dec. 31, 2020) Figures based on annual report 2020. 1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases. Profile Strategy & Transformation Network, Products & Innovation Service & Brand 6 Facts & figures United States & Europe Europe 45.6 mn mobile customers 7.0 mn broadband lines 5.1 mn IPTV, satellite, cable customers T-Mobile US € 11.3 bn revenue € 3.9 bn EBITDA AL1 adjusted 102.1 mn branded customers 41,273 employees (Reporting date Dec. 31, 2020) 81.4 mn postpaid customers 20.7 mn prepaid customers $ 70.1 bn revenue $ 24.0 bn EBITDA AL1 adjusted 71,303 employees (Reporting date Dec. 31, 2020) Figures based on annual report 2020. 1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases. Profile Strategy & Transformation Network, Products & Innovation Service & Brand 7 Facts & figures T-Systems € 4.2 bn revenue € 0.2 bn EBITDA AL1 adjusted 28,395 employees (Reporting date Dec. 31, 2020) Information technology and telecommunications services in all industries: automotive, finance, transport, retail & public sector Pioneer in cloud computing Corporate customers, multinational corporations & public sector Figures based on annual report 2020. 1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases. Profile Strategy & Transformation Network, Products & Innovation Service & Brand 8 Facts & figures Group Development Group Development is to actively manage and sustainably increase the value of selected subsidiaries and equity investments of DT Supported by more entrepreneurial freedom and shorter decision paths 6.8 mn mobile customers (TM NL) 0.7 mn broadband lines (TM NL) 35.7 k towers (Germany/DFMG and NL) € 2.9 bn revenue € 1.1 bn EBITDA AL1 adjusted Figures based on annual report 2020. 2,684 employees (Reporting date Dec. 31, 2020) 1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases. Profile Strategy & Transformation Network, Products & Innovation Service & Brand 9 Corporate Responsibility We take responsibility Data privacy Diversity Sponsorship Leading role in data privacy & data security Leading role in societal and Commitment to culture & sport • Data privacy report & Security on the Internet diversity-related issues • Amateur & professional sports e.g., German report • Pioneer as first to introduce Group-wide football association (DFB), Bayern Munich, • Early warning system against cyber attacks women’s quota Olympic & Paralympic Games, “New sports experience” project in recreational sports • Special programs & initiatives to promote education & training • Culture/examples: International Beethoven Competition, • Modern working models Beethovenfest • Exemplary promotion of diversity Profile Strategy & Transformation Network, Products & Innovation Service & Brand 10 Corporate Responsibility We take responsibility Sustainability & social commitment Groundbreaking projects Environmental and climate protection Group-wide climate protection target: 100% of Group’s e.g., CO2 reduction, efficient use of resources, circular electricity from renewable energy sources as of 2021. economy, sustainable mobility Net zero: In operations by 2025/entire value chain by 2040 Social commitment and stakeholder management “Media, sure! But secure.”: Offers promoting competent use e.g., digital participation, connection of media and of media among 9- to 99-year-olds, public campaign democratic literacy, responsible digitization #takepart – No hate speech Deutsche Telekom Stiftung: Enabler for education Sustainable innovations and products ecosystem for mathematics, science and technology e.g., environmentally friendly and accessible products, efficient data center, e-health #GoodMagenta & #GreenMagenta: Group environmental program supported by own label for Group’s sustainable Sustainable supplier management products, services and social initiatives. e.g., binding requirements for the supply chain, reviews and audits Supplier selection and development: Sustainability as a key criterion Strategic management and sustainable finance e.g., mandatory CR KPIs for the entire Group in the annual Success in respected rating indexes and rankings: and CR reports, sustainability indexes RobecoSAM, oekom, CDP and Sustainalytics, among others Profile Strategy & Transformation Network, Products & Innovation Service & Brand 11 How we see ourselves It is in our nature to seek the company of others: humans need this interaction in order to move forward. Our network is an artery pumping life: fast, reliable, Sharing fosters closeness. It is the very reason we choose to and secure. It provides easy access to all who need it. share our important moments with those important to us. We are close to the consumer and are transparent, fair, We share events, experiences, and opinions – sometimes even our and open to dialogue. We identify innovative products possessions. We share knowledge and our ideas. And quite often, at an early stage and develop them in collaboration with by sharing these thoughts, we turn them into something bigger, our partners. We do all of this better than anyone else. something better. That is what drives us. This ability forms the basis of trust – an essential ingredient for long-lasting relationships. We, Deutsche Telekom, are more than just another company, which