DL Presentation Deutsche Telekom
DL Presentation Deutsche Telekom
DL Presentation Deutsche Telekom
COMPANY PRESENTATION
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, depreciation and amortization, cash
flows, and personnel-related measures. 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. Among the factors that might influence our ability to achieve our objectives are the progress of our
workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor, or business initiatives, including acquisitions,
dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change,
legal proceedings, and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the
economic downturn in our markets, and changes in interest and currency exchange rates, may also 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 materialize, or if the assumptions underlying
any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We
can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any
obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents alternative performance measures, including, among others, EBITDA, EBITDA
margin, adjusted EBITDA, adjusted EBITDA after leases, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, free cash flow after leases, gross
debt, net debt after leases, and net debt. These alternative performance measures should be considered in addition to, but not as a substitute for, the information
prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies
may define these terms in different ways.
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DEUTSCHE TELEKOM COMPANY PRESENTATION
OVERVIEW
01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand
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DEUTSCHE TELEKOM
PROFILE
Customers & Markets Facts & Figures
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Customers & markets, facts & figures
GERMANY
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Facts & Figures: Germany
EUROPE & UNITED STATES
Europe:
50.5 million mobile customers
T-Mobile US: 6.4 million broadband lines
79.7 million mobile customers 4.8 million TV customers (IPTV,satellite,cable)
Direct shareholdings
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Facts & figures: EU & US
T-SYSTEMS
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Facts & figures: TSI
HOW WE SEE OURSELVES
It is in our nature to seek the company of others: humans need this interaction in Our network is an artery pumping life: fast, reliable and secure.
order to move forward. Sharing fosters closeness. It is the very reason we choose to 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, and open to dialogue.
We share events, experiences, and opinions – sometimes even our possessions. We identify innovative products at an early stage and develop them in
We share knowledge and our ideas. And quite often, by sharing these thoughts, we collaboration with our partners. We do all of this better than anyone else.
turn them into something bigger, 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 provides society
with infrastructure. Whatever the circumstances, we are a trusted companion in both Precisely this is the essence of our work at Deutsche Telekom.
people’s private and work lives. Together, with passion, focus and efficiency, we are entering a world
of infinite possibilities.
Whenever. Wherever. Forever
making life easier for people and enriching it is our mission. This connects us.
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Profile
WE TAKE RESPONSIBILITY
Leading role in data privacy & data security Leading role in societal and diversity-related issues Commitment to culture & sport
Data Privacy Report & Pioneer as first to introduce Group-wide Amateur & professional sports
Security on the Internet report women’s quota e.g., German football association (DFB),
Honeypots as early warning Special programs & initiatives to Bayern Munich, Olympic & Paralympic Games,
system against cyber attacks promote education & training ”New sports experience“ project in
Modern working models, e.g., E-mail Policy recreational sports
Winner of the Max Spohr prize for Culture/examples:
exemplary promotion of diversity International Beethoven Competition, Beethovenfest
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Responsibility
WE TAKE RESPONSIBILITY
CORPORATE RESPONSIBILITY
Sustainability & social engagement Groundbreaking projects
Environmental and climate protection Group climate protection target:
E.g., CO2 reduction, efficient use of resources, 20% less CO2 by 2020 compared to 2008
sustainable mobility 15 million tonnes less CO2 thanks to DT Services
Social engagement & stakeholder mgmt. Deutsche Telekom helps refugees
E.g., promote employees’ social commitments, 420 refugees integrated into the German labor market in
support education and competence in media 2017
Sustainable products and innovations Router leasing, “Blue Angel”, green tariff & Co:
E.g., environmentally friendly and accessible products, 40% turnover with more sustainable products (e.g. with
efficient data centers, ehealth eco-label), rental instead of purchase models & first
Sustainable supply chain green Edeka tariff
E.g., binding requirements for the supply chain,
inspections and audits Supplier selection and development:
sustainability as a key criterion and active further
Overarching training for our suppliers
Integrated financial and CR reporting
E.g., mandatory CR KPIs for the entire Group in the annual
and CR reports, sustainability indexes
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Responsibility
OUR GUIDING PRINCIPLES
Customer delight and Respect and integrity Team together – Best place to perform I am T –
simplicity drive our guide our behaviour Team apart and grow count on me
action
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Guiding Principles
DEUTSCHE TELEKOM COMPANY PRESENTATION
OVERVIEW
01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand
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OUR AMBITION: LEADING EUROPEAN TELCO
GROW
LEAD IN CUSTOMER EXPERIENCE LEAD IN TECHNOLOGY LEAD IN BUSINESS PRODUCTIVITY
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FUTURE GROWTH IS FUELED BY THREE MAIN PILLARS
LEAD IN
CUSTOMER EXPERIENCE + LEAD IN
TECHNOLOGY/NETWORKS + LEAD IN
BUSINESS PRODUCTIVITY
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WE LEAD IN CUSTOMER EXPERIENCE AND IMPROVE CONTINUOUSLY
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MAGENTA 1: OUR UNIQUE CONVERGENCE OFFER
Entertainment
Consumer IT
Smart Home
(Cloud etc.)
Security
Devices/Hardware
Seamless connectivity
Magenta Connectivity Access agnostic 2017 2021e
Mobile Fixed Partner Make, buy and partner
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WE STRIVE FOR PERFECT CUSTOMER SERVICE
34 pts.
Own P&L responsibility for dedicated teams
Net promoter score
Very high “Care NPS” (+9 pts. yoy 2017) at very low
TEAM OF costs per account (-13% yoy 2017) 74%
EXPERTS Customer service
(TEX) Focus for 2018: global care to ensure 24/7 satisfaction
best customer experience
2017 2021e
1 Formerly MagentaSERVICE App 2 Q1 2018
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WE ARE “DEDICATED NETWORK INVESTORS”
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MOBILE NETWORK LEADERSHIP EVERYWHERE
Strengthen leadership position (incl. 5G) & Build on strong fiber footprint to lead Extend network capacity & density
enable new use cases (e.g. IoT, FWA) in 5G & maintain growth momentum to pave way for 5G
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PUSHING FIBER ROLLOUT IN GERMANY…
In a very complex environment… …we developed a sustainable & economically viable fiber rollout plan
High-speed networks
(50–250 Mbps)
Benefits for DT:
Customer Finalize and monetize (Super) vectoring rollout for
demand max. high-speed coverage until end 2019e Defend/grow market
share
80% DT infrastructure
95% incl. wholebuy Maintain high &
stable investment
Monetization Broadband Competition budget
(regulation) rollout (price, speed) Gigabit networks (≥1 Gbps)
Adhere to strict
Start FTTH rollout Ramp up to 2 mn HH p.a. FTTH/B return
from 2018 by 2021e criteria: 7.5% IRR
New residential areas White spots (subsidized)
Business parks B2C winback areas Enable the Gigabit
Telekom@School
society
Political & … complemented by cooperation &
public demand co-invest models and supported by
a sensible wholesale access model
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…AND INTEGRATING GIGABIT NETWORKS IN EUROPE
2017 2021e
acquisition
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WE INCREASE BUSINESS PRODUCTIVITY…
GLOBAL CONNECTIVITY We provide platforms for secure data exchange and analytics:
CYBER SECURITY Telekom Data Intelligence Hub (DTH) launched
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…WITH SECURE ICT SOLUTIONS FOR SMB DIGITALIZATION
We leverage our strengths… …with a strong portfolio… …to grow in SMB digitalization
B2B revenue Germany,
Connectivity-Based € bn
Trusted partner with strong +2%
B2B brand & customer base Converged ICT Portfolio 6.5
6.0
SaaS
Large & efficient sales force
2017 2021e
Software/
Cloud Appli- IoT Security B2B revenue Europe,
Reputation as ICT provider cations € bn
(8x isg/Experton leader) +3%
3.2 3.6
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CLEAR TURNAROUND PLAN FOR T-SYSTEMS
Sales revitalization
TC CORE GROWTH-PORTFOLIOS CLASSIC IT Portfolio focus
Delivery integration
Digital Solutions Overhead reduction
Fixed Line Services Dedicated
SAP IoT SI Solutions
Public Cloud/Managed Services
Managed
Road Charging Classified ICT
Mobile Services Infrastructure Services
Security & Private Cloud Transform revenue mix towards growth
portfolio
Revenues Increase profitability
€2.2 bn €2.1 bn €2.5 bn
2017 (Cash contribution breaking even in 2020e)
CAGR
Maintain strategic optionality
2017–2021e
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GROWTH UNDERPINNED BY VALUE TRANSFORMATION
LEAD IN
CUSTOMER EXPERIENCE + LEAD IN
TECHNOLOGY/NETWORKS + LEAD IN
BUSINESS PRODUCTIVITY
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EFFICIENCY TO FUND INVESTMENTS INTO GROWTH
GHS -€0.2 bn
2017 2021e (incl. GROUP DEVELOPMENT)
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DIGITAL TRANSFORMATION TO ADDRESS UNTAPPED POTENTIAL
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OUR STRATEGIC CORE BELIEFS
We relentlessly strive for leadership in customer experience
We provide one seamless global T-connectivity
We offer the leading FMC proposition based on simple & modular products
Our sales experience is truly omnichannel, and our service is digital, proactive, and ‘perfect’
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DEUTSCHE TELEKOM COMPANY PRESENTATION
OVERVIEW
01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand
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OUR BEST NETWORK AT A GLANCE
NUMBERS, DATA, FACTS
13 MILLION BROADBAND LINES OVER 93% LTE NETWORK COVERAGE
LARGEST NUMBER OF OPTICAL FIBER CUSTOMERS OF ALL HIGH AVAILABILITY OF FAST MOBILE INTERNET11
EUROPEAN NETWORK OPERATORS1
MORE THAN 42 MILLION CUSTOMER
25,000 NEW „GRAY BOXES“ TELEPHONE AND SURF IN THE MOBILE COMMUNICATIONS
NETWORK1
MULTI-FUNCTION CASING FOR FAST INTERNET2
GIGA-SPEED
UP TO 500 MBIT/S FTTH: 1 GBIT/S DOWNLOAD AND 500 MBIT/S UPLOAD
4 BILLION EURO MOBILE SURFING WITH LTE
ANNUAL INVESTMENT IN GERMANY MORE THAN 20 MILLION LINES
CONNECT OUR FIXED NETWORK IN GERMANY1
FIRST HYBRID ROUTER
FOR MORE BANDWIDTH IN THE MASS MARKET 500,000 „GRAY BOXES“
E.G. CABLE SPLITTERS AND MULTI-FUNCTION CASINGS1
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND 30
Numbers, Data, Facts
OUR BEST NETWORK AT A GLANCE
AWARDS
Best network coverage, bandwidth and stability.
In mobile and fixed networks.
Leader in broadband quality for mobile communications and
fixed network
Innovative products
Biggest bandwidths
Best network coverage
Awarded repeatedly.
For the sixth consecutive time: Telekom wins the
large-scale Connect and CHIP mobile network tests
Car Connectivity Award: 7 out of 10 readers vote as the best
automobile network
TÜV certified: Telekom Deutschland offers the best mobile
network quality in LTE, according to QcC standard.*
* QcC: Quality comparison from the customer's point of view with the criteria "Success rate in setting up a call","call stability" and "voice quality" as well as "Success rate in data transmission" and "Service quality based on average data throughput".
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND 31
Network Germany
PRODUCTS & SERVICES
Cutting-edge mobile communications and Information & communication technology (ICT) Partner for infrastructure access
broadband experience solutions and network services
TV Outsourcing & cloud services Platforms & partnerships
Smart Home Intelligent network solutions for the health care, for innovative services
automotive and energy industries
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Overview: B2C, B2B, Partner
PRODUCTS & SERVICES CONSUMERS
Smart Home
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Products: B2C
PRODUCTS & SERVICES CONSUMERS
EXAMPLE: GERMANY
SERVICE
CLOUD COMMUNI-
CATION
MagentaONE
LIVING ENTERTAIN-
MENT
MAGENTA MAGENTA
HOME MOBIL
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Products: MagentaONE
ENTERTAINMENT
FERNSEHEN UND ENTERTAINMENT-DIENSTE
TV Entertainment-Dienste
Music Streaming StreamOn :
Music and video streaming without burdening
Präsenz Deutsche Telekom your own data volume
Präsenz Deutsche Telekom
mit (IP)TV-Angebot
125 partner services for music streaming,
60 partner services for video streaming
DEUTSCHE TELEKOM: PROFIL STRATEGIE & TRANSFORMATION NETZ, PRODUKTE & INNOVATION SERVICE & MARKE
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Produkte: Entertainment
SMART HOME
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Products: Smart Home
PRODUCTS & SERVICES FOR BUSINESS CUSTOMERS
Information
& communication technology
solutions (ICT) Intelligent network solutions
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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B2B
SERVICES FOR B2B
WHY T-SYSTEMS?
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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B2B
UNIQUE CHARACTERISTICS T-SYSTEMS
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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B2B
T-SYSTEMS – PERFORMANCE
Worldwide deliverability
Number of data centers (globally) 37 data centers (DCs)
Gross DC space (m2) 71,000 m²
Twin-core DC 17 twins
Help desk in 21 countries
Scalable platforms
Systems on standard 54,000
MIPS 133,000 MIPS
Storage 316,000 TB
SAPS 850,000 SAPS
SAP users 6.7 million users
as of: Q2/2017
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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B2B
UNIQUE CAPABILITIES AND A STRONG PARTNER-ECOSYSTEM
MODERN AND SECURE COMPLEX BUSINESS SOLUTIONS COMPREHENSIVE DYNAMIC AND NEW INTELLIGENT
NETWORKS INTRODUCTION AND SUPPORT SECURITY OFFERS AGILE IT PLATTFORMS
smart Network 3,000 SAP experts worldwide Europe’s largest 65,000 Data Analytics Hub
1. ngena 8,000 SI-forces cyber defense and security
active cloud systems
centre
BALANCED PARTNER ECOSYSTEM OF ESTABLISHED AND INNOVATIVE PARTNERS MAKES VISIONS REAL
>2.000 best-of-breed technology partner, investments in >100 start-ups
INNOVATIONS
Augmented/ Artificial Edge Blockchain …
Virtual Reality Intelligence Computing
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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B2B
INNOVATION AT DEUTSCHE TELEKOM
WE FOLLOW 3 BASIC PRINCIPLES
Portfolio & Innovation Board Corporate Innovation Fund 4+1 Priorities in Innovation
CONNECTIVITY HOME
5G / LOW LATENCY
BUSINESS UNITS WORK TOGETHER SPEED & FLEXIBILITY LONG-TERM STRATEGIC INITIATIVES
ACROSS DIVISIONS THROUGH FINANCIAL STAKES
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Innovation
... IN COOPERATION WITH
PARTNERS WORLDWIDE
Group Partnering hub:raum T-Labs
Promoting innovation worldwide Innovation transfer from the world of start-ups Research from the world's best universities
Increase in revenue and differentiation through Early development of new business ideas. Continuous Developing feasible ideas -T-Labs identifies relevant
complete integration into Deutsche Telekom’s ‘scouting’, start-up programs, strategic investments approaches from the academic world
product and development processes
TIME TO MARKET
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Innovation
EXAMPLES
WE ADDRESS ALL DIMENSIONS OF INNOVATION
Smart Home NB-IoT 5G / Low Latency
TIME TO MARKET
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND
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Innovation
DEUTSCHE TELEKOM COMPANY PRESENTATION
OVERVIEW
01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand
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BEST CUSTOMER SERVICE
EXAMPLE: GERMANY
Awards for customer service
Awarded regularly: TÜV technical inspection
service’s ”good“ seal for customer service
European Business Award: EU accolade awarded
for excellence and an innovative and successful
business model throughout Europe
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND 46
Best Customer Service
UNSERE MARKENPOSITIONIERUNG ERLEBEN, WAS VERBINDET
OUR BRAND POSITIONING
LIFE IS FOR SHARING
DEUTSCHE TELEKOM STRATEGY & TRANSFORMATION NETWORK, PRODUCTS & INNOVATION SERVICE & BRAND 47
Brand Positioning
UNSERE MARKENPOSITIONIERUNG ERLEBEN, WAS VERBINDET
OUR LIFESTYLE BRAND
LET‘S FALL IN LOVE WITH MAGENTA
Magenta – so much more than just Deutsche Telekom‘s company colour –
it‘s the most important element of our brand experience.
But we‘re taking it a step further because Magenta has become a real attitude
and our way of living. With our lifestyle products our employees show their
brand pride also beyond the company walls.
lovemagenta.com
DEUTSCHE TELEKOM: PROFILE STRATEGY & TRANSFORMATION NETWORK, PRODUCTS& INNOVATION SERVICE & BRAND 48
Brand
THANK YOU