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Deutsche Telekom Q1 2021 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.

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Q1 2021 results

sector leading growth

T-Mobile

• Strong growth with customers and EBITDA. FY guidance raised

• 40 MHz of C-band spectrum acquired

• Sprint integration ahead of plan and synergy guidance raised

• Analyst Day lays out FCF and buyback targets

Ex US

• 4.6% adj. EBITDA AL growth, FY guidance raised

• Progress with 5G and FTTH

• New wholesale agreements approved by BNetzA

Group

• Organic total service revenue growth 2.4%

• Performance better than anticipated. Guidance raised across the board

• Climate ambitions raised

• 60 cents dividend for 2020 paid (in April)

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Q1 2021

adj. EBITDA AL up 8% organic

Adj. EBITDA AL (Organic growth)

Adj. EBITDA AL1	Total:
€ mn	€9,245 mn

Q1 2021 Reported growth

Revenue

+32.3%

TMUS

GER

EU

GD

SYS	0.9%
	+€1 mn

10.7%

+€552 mn

3.5%

+€79 mn

4.1%

+€37 mn

9.8%

+€28 mn

Group (organic):

+8.3%

2,305

5,706

946

62 316

TMUS GER EU GD SYS

Adj. EBITDA AL	+41.3%
Adj. EBITDA AL	+4.6%
(excl. US)
Adj. Net profit	-6.5%
Net profit	+2.2%
Adj. EPS (in €)	-7.4%
Free cash flow AL	+100.8%
Cash capex	+27.7%
(excl. spectrum)
Net debt AL	+64.6%

1 Excl. GHS, as reported

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Networks

leading with 5G, FTTH on track

Fiber networks

Fiber homes1			+0.7
mn			50.3
49.6
13.7	14.0
35.9	36.3
	Q4/20	Q1/21

FTTH (1Gbps)
Fiber homes	+0.6
mn
	8.4
7.8
5.6	6.1
	2.2	2.3
	Q4/20	Q1/21

5G TM US

Extended range2	+15
mn POPs	295
280
Q4/20	Q1/21

5G TM US
Ultra capacity 5G2	+34
mn POPs
	140
106
Q4/20	Q1/21

5G ex US
Germany	+13
% of POPs	80
67
Q4/20	Q1/21

GER

• YE target raised to > 90% of population

EU

• 5G coverage at 19%
• NL: "Umlaut" network test shows T-Mobile's 5G network has best coverage in all categories (urban, rural, road, rail)

EU GER

1 EU8: ≥ 100 Mbit/s coverage: FTTH, FTTB, FTTC (with Vectoring), cable/ED3. GER: FTTC and FTTH/B lines 2 Extended range on 600 MHz, Ultra capacity on 2.5 GHz

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