Deutsche Telekom : Präsentation (pdf, 1.4 MB)

Deutsche Telekom FY 2020 results

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.

FY 2020 results sector leading growth

• 1) Includes 17 cents related to Softbank call option valuation

• 2) Subject to AGM approval

T-Mobile

• • Accelerated progress with 5G/integration

• • 106m pops passed with 5G in 2.5GHz

• • Customer and EBITDA growth - ahead of expectations

Ex US

• • GER: 17 consecutivequarters of EBITDA growth; EU: 12 quarters

  iv

  e

• • Guidance raised in Q3

• • Strong customer growth; 121k GER broadband net adds in Q4

Group

• • 3% revenue organic growth

• • 8% adj. EBITDA AL organic growth

• • Delivered FCF AL (€ 6.3bn), adj. EPS (€ 1.2)1, dividend2 (60 cents)

• • Leverage without leases 2.4x

FY 2020 adj. EBITDA AL up 8% organic

• 1) Excl. GHS, as reported

• 2) Includes US$ 1.5bn of merger related cash payments

FY 2020 Reported growth

Revenue

Adj. EBITDA AL

Adj. EBITDA AL (excl. US)

Adj. Net profit

Net profit

Adj. EPS (in €)

Free cash flow AL2

Cash capex (excl. spectrum)

Net debt AL

+25.4% +41.6% +3.1% +15.5% +7.5% +15.4% -10.3% +29.4% +53.7%