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Annual Report 2016 Here: #Shapingdigitallives Onlife

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Annual Report 2016 Here: #Shapingdigitallives Onlife Name : Isabell Name : Zoé Name : Laura and Ben Job : Student Job : Office manager Job : Banker and architect Age : 21 Age : 27 Age : 27 and 31 06 08 10 Name : Marco Name : Gregor Name : Jasmin and Nils Job : Electrician Job : Executive consultant Job : Educator and photographer Age : 51 Age : 44 Age : 32 and 34 14 16 18 OnLife. Shaping Digital Lives. OnLife. SHAPING DIGITAL LIVES — Name : Manuel Name : Christian Name : Angelika Job : Musician Job : Project manager in IT Job : Artist ONAge : 35 Age : 42 Age : 39 Telefónica Deutschland Telefónica 20 24 28 Name : Fritz and Leo Name : Vera Job : Pensioner and scholar Job : Lawyer Age : 65 and 12 Age : 55 Magazine LIFE2016 30 32 Telefónica Deutschland 2016 Telefónica Deutschland’s Strategy On the way to becoming the OnLife Telco 02 User Behaviour Isabell is online anywhere, anytime 06 O² Free Zoé wants to keep a close eye on her apps 08 Data Analysis and Internet of Things Laura and Ben want a comfortable, environmentally friendly life. With the aid of digital products 10 Network Expansion Marco needs ideal network coverage for his work 14 Mobile Office Being able to work and be contactable anywhere is a must for Gregor 16 Multi-brand Portfolio Jasmin and Nils use their smartphones differently – and need special offers 18 Partnerships Doing banking or watching football on his smartphone means less time pressure for Manuel 20 Digitalisation in Everyday Life Rapid processes and almost no paper: Digital tools are making Christian's life easier 24 Data Security Angelika asks: How secure is our data? 28 Corporate Responsibility ON Grandfather and grandson both want to surf the web 30 Our Share Vera only invests in fields with good prospects 32 Letter from the Management Board 33 Telefónica Deutschland as an Investment 34 Highlights Financial Year 2016 37 Investor Relations 39 Financial Calendar and Contact 42 Scene: public open space LIFEin Germany OnLife. Shaping digital lives. People cross it while shopping or on their way to work. It is where they meet their friends, bump into old acquaintances, or start up a conversation while on a break. Public space is the focus of everyday interaction. It embodies different situations, expectations, and negotiations on the big and small aspects of day-to-day life. As a company with more than 49 million customer accesses, Telefónica Deutschland occupies a similar place at the heart of society. Listening to what people want and giving them what they need to achieve it: this is what drives us as a telecommunications company. What is the young couple talking about? What is on the minds of the family or those who are out on a walk? On its way to becoming the OnLife Telco, Telefónica Deutschland is the pacemaker of digitalisation. We help our customers to use the achievements of the digital world in a way that caters to their desires and customs. We know our place. Come with us as we explore the topics we encounter there. Telefónica Deutschland 2016 Markus Haas Rachel Empey Chief Executive Officer (CEO) Chief Financial and Strategy Officer (CFO) Chairman of the Management Board Member of the Management Board Telefónica Deutschland Holding AG Telefónica Deutschland Holding AG 02 Telefónica Deutschland 2016 On the way to becoming the OnLife Telco Telefónica Deutschland is becoming the OnLife Telco. We are helping our customers to shape their digital life according to their wants and needs. We achieve this with a clear strategy which has been built on our three » As an OnLife Telco, guiding principles since the merger of Telefónica Deutschland and E-Plus: We are maintaining our we want to help our momentum on the market. We are successfully com- pleting the integration. And we are driving the digital customers to live a transformation of our company. As Germany’s largest mobile telco with more than self-determined digital 44 million mobile customer accesses, we maintained our momentum in the financial year 2016. We also took key life according to their strategic measures in order to turn the OnLife Telco vision into reality. Good progress has been made with the wants and needs.« integration of Telefónica Deutschland and E-Plus. We have completed the reorientation of our brand and prod- uct family and pressed ahead with the integration of the mobile networks. We have also streamlined our sales network and made extremely good headway in terms of our organisational restructuring. In light of this progress, our focus has shifted to the digital transformation of our Markus Haas company since mid-2016. »As an OnLife Telco, we want to help our customers to live a self-determined digital life according to their wants and needs. Our aim is to identify and meet their expectations in real-time,« explains Markus Haas, Chief Executive Officer of Telefónica Deutschland. »These capabilities are becoming a crucial factor for achieving competitive success.« 03 Telefónica Deutschland 2016 tent as an additional incen- tive for customers to use their mobile devices. To Rachel Empey this end, we are entering into partnerships with well-known content providers including Sky Deutschland and TV Spielfilm. »Our attractive products and services are aimed at » Our attractive products monetising our customers’ increasing consumption of data in order to leverage new revenue opportunities for and services are aimed Telefónica Deutschland. At the same time, we are working hard to improve our efficiency and cost base in order to at monetising our achieve our earnings targets in a tough fiercely competi- tive environment,« explains Rachel Empey, Management customers’ increasing Board member responsible for Finance, Strategy and Innovation. consumption of data.« A powerful network is and remains a key factor for a successful OnLife Telco. In the past financial year, Telefónica Deutschland forged ahead with the integra- tion of the O2 and E-Plus networks and continued the LTE rollout. In 2017, we will increasingly focus on network consolidation. In doing so, Telefónica Deutschland’s extremely reliable network offers a persuasive customer experience on a day-to-day basis. We also make it easier for customers to interact with us however they wish to. In the past year, we stepped up the integration of our online and offline chan- The companies of the future will be particularly success- nels in order to enable a seamless customer journey. As ful if they can offer customers suitable products and part of the digital transformation, we are simplifying our services as quickly as possible on the basis of real-time own structures and processes in order to improve the analysis. Customers are increasingly focusing on the customer experience and allow us to operate more actual benefit of such offers. In 2016, Telefónica quickly and efficiently on the market. Deutschland launched pioneering products and services Telefónica Deutschland is also making progress in with a view to meeting this customer demand. Exam- establishing new growth areas of business. We want to ples include the new O2 Free tariff family, which allows play a leading role in the next phase of digitalisation, customers to continue using key mobile apps for their which will primarily involve the extensive networking of everyday digital life even after using up their high-speed vehicles, machines and devices as part of Industry 4.0. In allowance. Or O2 Banking, the first fully mobile bank 2016, we therefore bundled the Advanced »Data Analyt- account, where users are rewarded with an increased ics« (ADA) and »Internet of Things« (IoT) business areas data allowance. We are also focusing on interesting con- to form the new company Telefónica NEXT. Based in 04 Telefónica Deutschland 2016 » Our aim is to identify and meet our customers’ expectations in real-time. These capabilities are becoming a crucial factor Berlin, Telefónica NEXT is an independent, entrepreneur- ial market player that seeks to provide other companies for achieving competitive with solutions to help them to better exploit the oppor- tunities presented by digitalisation. Following on from an success.« ADA app for in-store retail, we intend to present further solutions in 2017. In the area of IoT, Telefónica NEXT is Markus Haas working on a software platform to support companies in offering networked solutions to end users. Success in new business areas based on data analy- sis requires user acceptance. Accordingly, Telefónica Deutschland is helping its customers to use digital appli- cations with self-determination and ensuring that they retain sovereignty over how their data is used. This will create the strategic foundations for our long-term suc- cess as the OnLife Telco and improve our customers’ lives. It is our firm belief that customers and employees need to be part of the digitalisation process. After all, digitali- sation has only one purpose after all: to serve people. The Management Board of Telefónica Deutschland Since 1 January 2017 the Management Board of Telefónica Deutschland Holding AG has comprised of two members: Markus Haas is CEO and Rachel Empey, in addition to her previous responsibility for Finance and Corporate Strategy, is also responsible for the areas of Transformation & Inte- gration, Business Intelligence, Innovation and Telefónica NEXT. At the end of 31 December 2016, the former CEO, Thorsten Dirks, left the Management Board. The Supervisory Board had approved on 21 November 2016, as per Thorsten Dirks’ request an early termination of his contract. »On behalf of the Supervisory Board I would like to take the oppor- tunity to thank Thorsten Dirks for the exceptional collaboration and successful development of the company,« says Eva Castillo, Chairperson of the Supervisory Board of Telefónica Deutschland. More information can be found on the internet telefonica.de/management 05 Telefónica Deutschland 2016 Name : Isabell Job : Student Age : 21 On her way to university, Isabell uses her smartphone as a ticket.
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