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DEUTSCHE TELEKOM

COMPANY PRESENTATION

DEUTSCHE TELEKOM COMPANY PRESENTATION


OVERVIEW

01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand

DEUTSCHE TELEKOM
PROFILE
Customers & Markets

Facts & Figures

Customers

Markets

156 m mobile customers


29 m fixed-network customers/
18 m broadband customers
Approx. 6.6 m TV customers
Some 1.6 m managed
workplace systems

Telekom in figures, 2015

Present in 50 countries
Germany, Europe and the USA:
with own infrastructure
T-Systems: global presence &
alliances via partners

Revenue 69.2 bn
Adjusted EBITDA 19.9 bn
Free Cash-Flow 4.5 bn

Employees & responsibility

Employees worldwide: 225,000


8,600 trainees and cooperative
degree students in Germany
Pioneer of social issues
(climate protection, data privacy,
diversity, etc.)

Source: DT 2015 annual report/TMUS annual report to shareholders 2015

DEUTSCHE TELEKOM
Customers & markets, facts & figures

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND

GERMANY

40 million mobile customers


Biggest (V) DSL provider in Germany
12.6 million broadband lines
2.7 million IPTV customers incl. satellite

22.4 billion revenue


8.8 billion EBITDA
68,638 employees
110,354 employees in Germany overall

Financial figures taken from DT's 2015 annual report

DEUTSCHE TELEKOM
Facts & Figures: Germany

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND

Europe & United states

T-Mobile US:
63.3 million mobile customers

Europe:
Present in 13 countries
52.2 million mobile customers
5 million broadband lines
3.9 million IPTV, satellite, cable customers
iPhone in all European markets

USD 32.07 billion revenue


USD 7.36 billion EBITDA
44,229 employees

12.7 billion revenue


4.3 billion EBITDA
49,638 employees
Direct shareholdings

Financial figures taken from DT's 2014 annual report/TMUS' annual report to shareholders 2014

DEUTSCHE TELEKOM
Facts & figures: EU & US

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND

T-SYSTEMS

Information technology and telecommunications

services in all industries:


automotive, finance, transport,
retail & public sector

8.6 billion revenue


0.8 billion EBITDA
46,000 employees

Pioneer in cloud computing

Corporate customers, multinational corporations


& public sector
Financial figures taken from DT's 2015 annual report

DEUTSCHE TELEKOM
Facts & figures: TSI

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND

HOW WE SEE OURSELVES


WHAT CONNECTS US.
It is in our nature to seek the company of others: humans need this interaction in
order to move forward. Sharing fosters closeness. It is the very reason we choose to
share our important moments with those important to us.
We share events, experiences, and opinions sometimes even our possessions.
We share knowledge and our ideas. And quite often, by sharing these thoughts, we
turn them into something bigger, something better. That is what drives us.

We, Deutsche Telekom, are more than just another company, which provides society
with infrastructure. Whatever the circumstances, we are a trusted companion in both
peoples private and work lives.
Whenever. Wherever. Forever
making life easier for people and enriching it is our mission.

DEUTSCHE TELEKOM
Profile

StrategY & Transformation

Our network is an artery pumping life: fast, reliable and secure.


It provides easy access to all who need it.

We are close to the consumer and are transparent, fair, and open to dialogue.
We identify innovative products at an early stage and develop them in
collaboration with our partners. We do all of this better than anyone else.
This ability forms the basis of trust an essential ingredient for long-lasting
relationships.
Precisely this is the essence of our work at Deutsche Telekom.
Together, with passion, focus and efficiency, we are entering a world
of infinite possibilities.
This connects us.

Network, Products & INNOVATION

Service & BRAND

We take responsibility
Data privacy

Diversity

Sponsorship

Leading role in data privacy & data security


Data Privacy Report &
Security on the Internet report
Honeypots as early warning
system against cyber attacks

Leading role in societal and diversity-related issues


Pioneer as first to introduce Group-wide
womens quota
Special programs & initiatives to
promote education & training
Modern working models, e.g., E-mail Policy
Winner of the Max Spohr prize for
exemplary promotion of diversity

Commitment to culture & sport


Amateur & professional sports
e.g., German football association (DFB),
Bayern Munich, Olympic & Paralympic Games,
New sports experience project in
recreational sports
Culture/examples:
International Beethoven Competition, Beethovenfest

DEUTSCHE TELEKOM
Responsibility

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND

We take responsibility
CORPORATE RESPONSIBILITY
Sustainability & social engagement

Groundbreaking projects

Environmental and climate protection


E.g., CO2 reduction, efficient use of resources,
sustainable mobility

Social engagement & stakeholder mgmt.


E.g., promote employees social commitments,
support education and competence in media

Sustainable products and innovations


E.g., environmentally friendly and accessible products,
efficient data centers, ehealth
Sustainable supply chain
E.g., binding requirements for the supply chain,
inspections and audits

Integrated financial and CR reporting


E.g., mandatory CR KPIs for the entire Group in the annual
and CR reports, sustainability indexes

DEUTSCHE TELEKOM
Responsibility

StrategY & Transformation

Network, Products & INNOVATION

Group climate protection target:


20% less CO2 by 2020
Yes, I can! initiative for children and young adults:
5 years, 500 projects, 50,000 opportunities

Blue Angel:
first cordless telephone on the market
to have the eco-label
Supplier selection and development:
sustainability as a key criterion
Success in respected rating indexes and rankings:
oekom, CDP and Sustainalytics, among others

Service & BRAND

OUR GUIDING PRINCIPLES

Customer delight and


simplicity drive our
action

DEUTSCHE TELEKOM
Guiding Principles

Respect and integrity


guide our behaviour

StrategY & Transformation

Team together
Team apart

Network, Products & INNOVATION

Best place to perform


and grow

Service & BRAND

I am T
count on me

10

DEUTSCHE TELEKOM COMPANY PRESENTATION


OVERVIEW

01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand

11

Changing industrys paradigms


internet of things

virtualization

digitization
self-service sharing
mix and match

convergence

bandwidth
All-IP

apps convenience
synchronity

StrategY & Transformation


Trends

reliability

stability LTE

open platforms
interoperability Industry 4.0

DEUTSCHE TELEKOM

softwarization

hybrid networks

simplicity

two-sided business model

modularization

coverage

individualization

data is the resource

data analytics

network effects

connected data platforms


OTT data analytics
Network, Products & INNOVATION

ecosystem

Service & BRAND

freemium

12

Customer trends
sharing in a connected world

Phone by Apple

Contract by Telekom

25 different apps1

Seamless connectivity

Individual
mix & match

Telekom.de LTE 16:45 38 %

LTE

WLAN

FIBRE

HYBRID

Sharing is the new having


Appification: one use case, one app

Intuitive and simple interfaces mobile first

Digital enabling of all aspects of life


2

1) Average number of downloaded apps on smart phones (2014)

DEUTSCHE TELEKOM

2) Telekom Service Apps: Magenta Service and Telekom Hilft

StrategY & Transformation


Trends

Network, Products & INNOVATION

Service & BRAND

13

Technology trends
convergence & virtualization
SOFTWARIZATION

VIRTUALIZATION

CONVERGENCE

Software defined networks

Network function virtualization

Hybrid

Service Programming

Service A

Control & Automation

Fixed net for


base load and
stability

Service B

Control & Automation

Cloud
Infrastructure

Replacing consumer hardware

mobile net for


additional
bandwidth

Heterogeneous networks

DEUTSCHE TELEKOM

Modern in-memory platform


Transact & analyze data in real-time
Low-cost open source platform
Batch process/archive infinite
amounts of data

Commodity Hardware

Common IP Layer

eSIM

DATA ANALYTICS

Faster Time-to-Market
Higher elasticity
Higher redundancy
Independence from hardware

virtual set-top box

StrategY & Transformation


Technology trends

micro cell

Network, Products & INNOVATION

macro cell

Service & BRAND

pico cell

SAP HANA

HADOOP

Instant Results

Infinite Storage

Real time business


results from big data

14

Business model trends


OTT disruption
OTT BUSINESS MODEL

TELCO BUSINESS MODEL

Usage-based
monetization

Open
platforms

Asset-light
portfolio extension

Asset-heavy
network invest

FREEMIUM
SERVICE

PREMIUM
SERVICE

Interoperable
standards

De-facto
standards

DISRUPTION

Unregulated
market

Transport and
protection of user data

DEUTSCHE TELEKOM

Ad-based
monetization

Closed
platforms

Regulated
market

Scale for
utilization

StrategY & Transformation


Business model trends

Network, Products & INNOVATION

Scale for
Reach

Service & BRAND

Exploitation of
user data

15

We fight for control over our value points

Dumb
Pipe

Infrastructure projects

Owned
network

Seamless connectivity in
fixed and mobile

DEUTSCHE TELEKOM

Virtualized access
through eSIM

Access enabling
hardware/
SIM-card

State-of-the-art devices

Telco service
substitution

Services
(communication,
TV, )

Integrated and simple


offers

StrategY & Transformation


Business model trends

Customer relationships dominated through app


Retailization of device
and content stores,
distribution enforced by eSIM payment solutions and online service

Device
distribution

Strategic terminal
management

Network, Products & INNOVATION

Billing & contractual


relationship

Reliable and secure


service

Service & BRAND

OTT
moves

Sales & service


channels

Digital and omnichannel service

DT
moves

16

Our strategy

LEADING EUROPEAN TELCO


INTEGRATED
IP NETWORKS

BEST
CUSTOMER
EXPERIENCE

WIN WITH
PARTNERS

LEAD IN
BUSINESS

TRANSFORM PORTFOLIO
EVOLVE FINANCIAL TARGETS & EFFICIENCY

ENCOURAGE LEADERSHIP & PERFORMANCE DEVELOPMENT

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy

Network, Products & INNOVATION

Service & BRAND

17

Our core beliefs


WE ARE THE TRUSTED PARTNER FOR OUR CUSTOMERS
We relentlessly strive for delivering the best customer experience
Our products make life is for sharing simple, reliable and secure
Our networks provide best seamless connectivity
Sales and service processes go digital, omni-channel and 24 x 365
Partner products and services amend our core proposition
Advanced data analytics improve and extend our service offering
Technology leadership with a superior production model
Fiber-based, integrated IP-networks deliver superior coverage, speed and quality
We scale our production across footprint for efficiency and time-to-market
Our open and interoperable connected data platforms enable the industrial internet

We build the best team in the industry


Empowerment, collaboration and innovation are imperatives of our leadership
We constantly raise the bar while investing into the next, superior generation of talents
We think customer-centric, are disruptive, take ownership, and act truly international

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Our core belives

Network, Products & INNOVATION

Service & BRAND

18

Our seamless high performing network


TECHNOLOGY LEADERSHIP

SUPERIOR SPEED AND COVERAGE SEAMLESS ACCESS


We push a highly competitive fiber based infrastructure and at the same
time stick to our capex envelope!

Target picture: Integrated

Mobile only

1) Outdoor coverage

2) Depending on country

DEUTSCHE TELEKOM

3) In integrated footprint

95% LTE pop-coverage1 in 2018 with up to 300 Mbps


Fiber household footprint of 80% in 2018 with at least
50 Mbps depending on regulatory adjustments
Introduction of super vectoring with more than 250 Mbps in cable
footprint
Download speed of up to 550 Mbps via hybrid in cable footprint
264,000 hotspots and 2,000 small cells in 2018 to boost mobile
capacity & indoor coverage
75 95%2 LTE pop-coverage in 2018 with up to 300 Mbps
50% of households3 with at least 100 Mbps in 2018
12% of households3 with up to 500 Mbps4 in 2018
1.6 mn hotspots in 20185

4) FTTH, FTTB, FTTC, cable/ED3 (cable, esp. in Hungary with Euro-DOCSIS)

StrategY & Transformation


Strategy: Integrated IP networks

Network, Products & INNOVATION

5) Including FON

Service & BRAND

19

Our superior production model


DIGITAL TRANSFORMATION OF CUSTOMER FACING PROCESSES

COST EFFICIENCY & SIMPLICITY

ALL-IP-TRANSFORMATION

PAN-EUROPEAN NETWORK

INTEGRATED NETWORK STRATEGY


1 LTE roll-out

PSTN migration
in all NatCos

2 Optical fiber
Centralized, virtualized
architecture and
production platforms

PLUG & PLAY

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Integrated IP Networks

3 Vectoring
4 Hybrid access
PANNET

TIME TO MARKET

Network, Products & INNOVATION

BEST CONNECTIVITY

Service & BRAND

20

Our integrated Customer proposition


Mobile
Internet

L
SERVICE

DSL

KOMMUNIKATION

CLOUD

Access

ER

ENTERTAINMENT

LEBEN

Product world in silos


Every tariff element to be booked
separately

SICHERHEIT

Simplified tariff scheme


Data as key differentiator

FROM SEPARATE, COMPLEX TARIFFS

TO SIMPLIFIED WITHIN SILOS

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Delight your customers

Network, Products & INNOVATION

Convergent portfolio, also beyond


tariffs
Seamless connectivity

TO FULLY INTEGRATED TODAY.

Service & BRAND

21

Partnering strengthens our customer proposition


WIN-WIN-WIN THROUGH PARTNERING

ACHIEVEMENTS AND AMBITION OF PARTNERING


6

CUSTOMERS

One-stop shopping
Integrated proposition
Best digital products

Subscriber (mn.)

2.3

2014

2018
300

Revenue ( mn.)

100

2014

PARTNER

Product reach
Technical enablement
Additional revenues

DEUTSCHE TELEKOM

DT

Platform scale
Loyalty boost
Additional revenues
Partner vs. make

StrategY & Transformation


Strategy: Win with partners

2018

Network, Products & INNOVATION

Subscriber (mn.)

1.7
2014

Service & BRAND

2018

22

open & interoperable platforms


INDUSTRIAL INTERNET

Smart Data fuels the next industrial revolution:

Lot sizes of 1

Autonomous robots

Real-time ERP

EXAMPLE: CONNECTED CAR


Pure
Data
Platform
Connect.
Mgmt.
Services

Car Industry
Solutions

Secure
Autocloud
Data-driven services
(context & 3rd party data)

Data-driven services (internal data)

Open & interoperable platforms for crossindustry data pools

Open, interoperable platforms


Secure data hosting

Data security & privacy as key differentiator

M2M Connectivity

High performance network infrastructure &


traffic prioritization as enabler
industry-agnostic

industry-specific

OUR CUSTOMERS
(SELECTION)

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Lead in business

Network, Products & INNOVATION

Service & BRAND

23

Innovation drives future differentiation

INNOVATION @ DT ...

... is leading edge: e.g. Hybrid,


Super-Vectoring, Qivicon

... happens on all levels:


networks, processes, platforms,
tariffs and products
... considers todays and
anticipates future customer
demands
... is efficient and effective:
focused make vs. partner
decisions

INTEGRATED
IP NETWORKS

BEST CUSTOMER
EXPERIENCE

WIN
WITH PARTNERS

LEAD IN
BUSINESS

PAN-Net/NG-/All-IP
QoS
Hybrid/WiFi
5G
Virtualization
(SDN/NFV)
Super-Vectoring
G.fast
Carrier Aggregation/
MIMO

Communication
Security
Wearables
eTransformation

Steckerleiste
Strategic Partners

M2M
Cloud
Verticals
Advanced Data
Analytics
Open and interoperable
platforms

300 Mbit/s

MagentaEINS/ FMC Plus/ FMCC


Smart Home/Qivicon
NGTV
Payment
Ecosystem Management
eSIM
Accentuated: Innovation in adjacent businesses

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Innovation

Network, Products & INNOVATION

Service & BRAND

24

EuropEs most valuable and most reliable


telecommunications brand
MOST TRUSTED BRAND FOR INTERNET AND MOBILE
COMMUNICATIONS1

Most valuable brand


among European telcos

46
24

24

Source: Institut fr Demoskopie Allensbach, 2014

DEUTSCHE TELEKOM

21

21

19

18

17

15

Most trusted brand for


Internet and mobile
communications

1) Share of people who rate these companies as trustworthy

STRATEGY & TRANSFORMATION


Strategy: Brand

Network, Products & INNOVATION

Service & BRAND

25

Regulation must keep pace with reality


Revenue

Scalability

Adjust regulatory frameworks to reinvigorate


industry growth
Review pricing regulation
Allow quality differentiation
Develop uniform legal frameworks to promote
digital innovations

Competitiveness
Ensure fair competition with the same rules for all
players along the value chain
Data privacy and data security
Interoperability
Consumer protection

Access

Devices

Services

Telcos

OTTs

Cable

Media

User
experience

Enable economies of scale to yield dynamic


efficiency gains
Promote market consolidation
Enable partnerships to promote open platforms
and interoperability

Investment
Provide incentives to invest in broadband
infrastructure
Ensure investment-friendly regulation
Harmonize spectrum policy
Improve funding and promote cost-efficient
technologies

Convergence

The telecoms and the OTT market are merging together establishing uniform regulatory frameworks is absolutely necessary

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Regulation

Network, Products & INNOVATION

Service & BRAND

26

We follow a clear portfolio strategy


ACHIEVEMENTS

M&A POLICY GOING FORWARD

Sale of 70% stake in Scout for 1.6 bn


Attractive valuation of 20 times 2013 EBITDA
30% stake retains significant upside potential

Europa
Selective and minor FMC/ICT acquisitions in our core integrated
markets, but only for attractive multiples
TMA and TMNL: mobile attacker strategy

Access to capital markets, scale and synergies


Improved network proposition & turnaround
Strong customer track record, now #3 player
Market cap more than doubled since listing
Synergies NPV increased to $910 bn

US
Un-carrier strategy
Continue de-risking, self-funding, king maker asset

Other
Further monetization of assets if more value can be crystallized
outside group
Smaller technology M&A to strengthen business and innovation
capabilities
Minority shareholders: Opportunistic approach, only if economically
attractive

Strategic solution: building FMC market leader


Premium valuation: 12.5 bn EV
Upside via participation in synergies

Sale to Strer to create leading German


portal operator and online marketer
Participation via 11.6% stake in Strer

4
DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Portfolio strategy

Network, Products & INNOVATION

General policy No major acquisitions outside our footprint


Service & BRAND

27

We reduce our indirect cost ex TMUS


VARIABILIZATION OF COST (EX US)

DRIVEN BY REVENUE GROWTH AND INDIRECT COST REDUCTION


bn

Share of direct and indirect1 cost (ex US)

10.4

-0.8 bn

CAGR 1-2%
driven by revenue growth

-0.4 bn

67%

65%

61%

-4pp
1
Adj. direct cost (ex US)

Ambition

50%
55%

19.3

2014

-1.8 bn
indirect cost1 reduction
across all segments
(ex US)
2014 - 2018

-0.5 bn
GHS &
Cons.

-0.1 bn

Segment contribution

Adj. indirect cost1 (ex US)

1) Before capitalization of labor

DEUTSCHE TELEKOM

StrategY & Transformation


Strategy: Cost reduction

Network, Products & INNOVATION

Service & BRAND

28

The best team puts our strategy in action

LEADING EUROPEAN TELCO

More
Leadership
Diversity

Responsibility
Incentivation

Talent management
Qualification

DEUTSCHE TELEKOM

Live new leadership culture

collaborate, innovate and empower to perform.

Foster international job rotation

international mindset.

Ensure clear end-to-end responsibility

clear leadership and ownership.


raising the bar for overall success.
international leaders & experts.
skill development for future business.

StrategY & Transformation


Strategy: Leadership culture

Network, Products & INNOVATION

Link our incentive schemes to performance & share price


Push for cross functional, cross segment careers
Invest in training, up-skilling on all levels

Service & BRAND

29

Operational and financial priorities per segment


GERMANY

Superior All-IP production model


and INS rollout!
No. 1 choice for customers via
differentiation:

USA

First to move to pan-European AllIP production model

superior networks

best seamless connectivity

best customer experience

trust

simple and personal products!

T-SYSTEMS MU

Un-carrier strategy:

No. 1 choice for customers via


differentiation:

2.23.2 mn branded postpaid


net adds in 2015!

Radical indirect cost savings

Revenue stabilization in 2016

Cash contribution CAGR 0.5%1

Revenue CAGR 79%

2pp op. ROCE improvement

EBITDA CAGR 710%

FCF CAGR 1318%

EBITDA

CAGR 12%1!

1) All CAGRs 2014 2018

DEUTSCHE TELEKOM

Updated 5-year

growth rates2:

TSI 2015+ Execution

No. 1 choice for customers via


differentiation:

Increased $9-10 bn NPV of Metro


PCS synergies

300m pops LTE coverage


YE15

best in class integrated


products

EUROPE

best networks & scalable


platforms

Security

outstanding cloud experience!

MU Revenue CAGR 3%1


Positive TSI adj. cash contribution
after 2016!

2) 2012 2017 Financial Growth

StrategY & Transformation


Strategy: Segments

Network, Products & INNOVATION

Service & BRAND

30

DEUTSCHE TELEKOM COMPANY PRESENTATION


OVERVIEW

01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand

31

INTEGRATED IP NETWORKS
All-IP Transformation

Pan-European Network

Integrated network strategy


1 LTE rollout
2 Fiber
3 Vectoring
4 Hybrid Access

PAN
NET

Device Hybrid

Shift to IP-Platform until 2018

DEUTSCHE TELEKOM

StrategY & Transformation

DT Technology leader
European production
model on IP-Basis

Network, Products & INNOVATION


Integrated IP Networks

Service & BRAND

LTE
DSL

Build out of modern infrastructures:


LTE, Fiber/Vectoring etc.

32

INTEGRATED NETWORK STRATEGY


Infrastructure
LTE Roll-Out

1 LTE Roll-Out

Optical Fiber

D: 95% LTE PoP-coverage1 in 2018


with up to 300 MBit/s
EU: 75 95%2 LTE-PoP-coverage
in 2018 with up to 300 MBit/s

2 OPTICAL FIBER

D: Glass Fiber household footprint of


80% in 2018 with at least 50 MBit/s
depending on regulatory adjustments
EU: 50% of households3 with at least 100 MBit/s in
2018, 12% of households3
with up to 500 MBit/s4 in 2018

+
Vectoring

3 Vectoring

HyBrid Access

D: Introduction of super vectoring with more than 250


Mbps in cable footprint

D: Download speed of up to 550 Mbps via hybrid in


cable footprint

4 Hybrid Access
Device
Hybrid

1) Outdoor coverage

2) Depending on country

DEUTSCHE TELEKOM

3) In integrated footprint

LTE
DSL

Hybrid Router

4) FTTH, FTTB, FTTC, cable/ED3 (cable, esp. in Hungary with Euro-DOCSIS)

StrategY & Transformation

Network, Products & INNOVATION


Network Strategy

Service & BRAND

33

BEST NETWORK & NETWORK BUILD-OUT


IN GERMANY
Example Germany

Leader in broadband quality for mobile and fixed network


Innovative products
Biggest bandwidths
Best network coverage

AWARDS

For the fives time in succession:


Telekom wins the major CHIP network test
Connect network test: top position reinforced
Connect readers choice 2015:
winner of best mobile network provider, among others

DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Network Germany

Service & BRAND

34

BEST Network
EuropE
Facts Europe

Network coverage

LTE in all markets (AMC 2015)

LTE coverage

12 Countries

Testing LTE Advanced


Fibre, Vectoring and Hybrid as
Network-Booster
Europe first IP-Network in Mazedonia
and DT worldwide first company with
Terastream

2018: 75 95%
Europe wide IP-network

Transformation to pan-european
IP-network

regional FaCTS
1.1 billion km 2
132 million Inhabitants
50 million Households

100 Mbit--supply

IP-voice coverage
2018 up to 9 million

2018 up to 50%
DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Network Europe

Service & BRAND

35

PRODUCTS & SERVICES


Consumers

Business customers

Cutting-edge mobile communications and


broadband experience
TV
Online services
Cloud products

DEUTSCHE TELEKOM

StrategY & Transformation

Innovation & Partner Services

Information & communication


technology (ICT) solutions
Outsourcing & cloud services
Intelligent network solutions for the
health care, automotive and
energy industries

Network, Products & INNOVATION


Overview: B2C, B2B, Partner

Service & BRAND

Partner for infrastructure access


and network services
Platforms & partnerships
for innovative services

36

PRODUcts & services consumers


Cutting-edge broadband and mobile
communications experience

WiFi
Optical fiber/VDSL

Entertainment

Mobile
communications/
mobile Internet

Communication
services

Hybrid router
IP telephony

Innovative
services

Smart Home
DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Products: B2C

Service & BRAND

37

PRODUcts & services consumers


EXAMPLE: GERMANY

Service

CommuniCation

Cloud

MagentaONE
Entertainment

Living
Magenta
Home

DEUTSCHE TELEKOM

Magenta
Mobil

StrategY & Transformation

Network, Products & INNOVATION


Products: MagentaONE

Service & BRAND

38

Entertainment
(IP)TV aND ENTERTAINMENT-services
(IP) TV

Entertainment-Services
Music streaming via Spotify
Unlimited music streaming with more than 30 million songs available
anywhere over smartphone, tablet, or PC
Integration of the Spotify premium service into Telekom rate plans and
as add-on option

Deutsche Telekom footprint


Deutsche Telekom footprint
with (IP)TV service

(IP)TV in D/Europa, 9 countries in total


>6 million TV customers

Netflix & Maxdome:


Hollywood blockbusters and series highlights
Fully integrated Entertain TV service: broad TV offer in German and English
As an add-on option to Entertain in SD and HD quality

Entertain in Germany:
3D & TV in HD quality with 250 channels
(>100 HD channels)/50,000 content offers
Entertain via satellite
Entertain remote app
Entertain to go: tablet, PC and mobile

Entertain
DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Products: Entertainment

Service & BRAND

39

COMMunication Services
CLOUD, Security, E-mail
Telekom Cloud

Security

Photos, videos and music whenever, wherever


from the cloud
Deutsche Telekoms secure cloud:
TV certification
E-Mail made in Germany

DE-MAIL

Telekom Security Package:


Security everywhere reliable protection against
virus etc. mobile and at home
Insurance for mobile devices damages, theft, etc.

TelekomCloud

Secure/legally binding e-mail


No letter, but signed and sealed
Security in line with the
De-Mail Act

Saves
printing and
postage costs

End-to-End Service
Data Protection
Data Security

De-Mail
Letters
Registered mail
Faxes
DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Products: Communication Serices

Service & BRAND

40

SMART HOME
Smart Home Home control on the move
Control the entire house with Smart Home via a smartphone app
and save money as you do so.
Enjoy the feeling of having everything under control:
Demand-based heating no more cold homes
Start washing machines and other appliances when on the
move and save time and money
Full control over windows, doors and shutters
Networked smoke and motion detectors or
HD surveillance cameras
Control everything from a smartphone or tablet
anytime, anywhere

DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION


Products: Smart Home

Service & BRAND

41

PRODUCTS & SERVICES FOR BUSINESS CUSTOMERS


Information & communication
technology solutions (ICT)

ICT expertise
& cloud portfolio

Dynamic IT access
(cloud computing)

Collaboration

Mobile company
(cloud services)

DEUTSCHE TELEKOM: PROFILE

Intelligent network solutions

Automobile

Energy

STRATEGY & TRANSFORMATION

Health

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

42

SERVICES FOR BUSINESS CUSTOMERS


Security

Data is subject to German


data protection regulations
IT infrastructure is
protected against attacks
Backed-up networks and
secure access line

Reliability

Transformation

Failure safety (24/7 availability)


Access from every location must be
ensured at all times on an end-to-end
basis

Optimization of networks, servers,


and applications
Cloud integration and migration
Improvement of user experience

Drive innovation

DEUTSCHE TELEKOM: PROFILE

Flexibility

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

Parallel use of private and public


services
Integration of the various
virtualization methods
Comprehensive sourcing and
management of hybrid landscapes
Integration of in-house services as
required

43

T-Systems performance
Worldwide deliverability
Develop new business models Analytics

Managed seats worldwide

Approx. 1,355 million

Develop new forms of collaboration Mobile collaboration

Number of data centers (globally)

53 data centers (DCs)

Use new sales channels with greater flexibility and speed Cloud

Gross DC space (m2)

141,000 m

Twin-core DCs

20 twins

Help desk in

21 countries

Ensure high reliability and quality of infrastructure IT platforms


Achieve greater agility and speed Best network

Scalable platforms

Protect data and IT Maximum ICT security

Systems on standard

46,000

MIPS

132,000 MIPS

Storage

287,000 TB

SAPS:

60.7 million SAPS

SAP users

3.3 million users

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

44

Industry expertise
Manage 70 % of top 100 companies in all industries across
Germany

No. 1

in Germany in the public sector


in Germany in the transportation sector

No. 2

in EMEA for manufacturing

No. 3

in Germany in the utilities sector

Last revised: Q1/2015

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

45

Pioneer IN CLOUD COMPUTING

T-Systems has been offering solutions via dynamic


platforms for more than ten years

More than 36,000 cloud systems worldwide in operation


More than 300,000 employees in customer companies
communicate via T-Systems' Dynamic Services for
Collaboration
Germany's biggest data center is in Biere and covers a

space of 22,000 square meters

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

Focus on security: Systems are subject to German data


protection regulations

SERVICE & BRAND

46

Partners
Global
alliances

Partnerships with global technology leaders

Certificates and exclusive partnerships

Close partnership and collaboration

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

T-Systems International GmbH

May 2016

47

Innovation areas
Energy

Health

Connected car

Services for the highly complex energy grid of the


future
Smart metering and gateway communications
services
Solutions for energy-industry processes
Smart home
Smart grid services

Solutions for connecting doctors, patients, hospitals,


health insurance providers, and care facilities.
Telematics
Telemedicine/telemonitoring
Digital processes
Ambient assisted living (AAL)
Hospital IT

Integration of cars and trucks in the Internet and in


enterprise processes
Cloud infrastructure and operation of the open
Business2Car platform
Telematics services
Connectivity (M2M/broadband)

THE INTELLIGENT NETWORKING OF DEVICES AND SYSTEMS IS A GROWTH DRIVER FOR NEW TECHNOLOGIES
DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

48

Customer example: Shell


GLOBAL DELIVERABILITY
IT and telecommunications from a single Dynamic services for collaboration
source
The solution

An international energy and petrochemicals group with


some 92,000 employees in more than 70 countries
The solution
Takeover of data centers with 12,000 servers in the
United States, the Netherlands, the United Kingdom,
Malaysia and other countries
Consolidation of data centers, SAP and other
applications
Migration of 80 % of applications to the dynamic
services platform
Customer benefits
Greater flexibility through the dynamic services
platform
High fixed operating costs are transformed into
variable costs with a transparent and use-based
price model

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

3 farms: Standard MS SharePoint 2010, TSI SharePoint


2010 for specific applications, "FAST" (full text/metadata
search)
Cross-farm services, such as web analytics, identity &
access management (single sign-on)
Set out for 150,000 users, with 300 terabytes of storage

Customer benefits
"Standard" technical benefits: scalability, cost
efficiency, pay per use, simpler maintenance
With standard collaboration functions, employees
get access to relevant information worldwide
without having to know the format or where it is
saved

49

Customer example: MAN


TELEMATICS SYSTEM FOR VEHICLE FLEET MANAGEMENT
MAN is a leading commercial vehicle manufacturer,
with 36,000 employees and production of more than
100,000 vehicles

The solution
Development of a combined telematics and vehicle
fleet management system
Linking of the existing tracking and fleet
management tool with a system for data collection,
vehicle deployment analysis, maintenance
management, and DTCO download

The challenge
Simplifying scheduling
More efficient fleet utilization
Tracking of goods status in real time
Zero distance to drivers and information

Customer benefits
MAN offers its customers a savings package to
reduce running costs and increase operating
efficiency
Vehicle fleets are made more efficient through
improved capacity utilization and real-time
scheduling of goods

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

50

Customer example: Swiss Federal Railways (SBB)


ICT OUTSOURCING
Swiss Federal Railways (SBB) has 28,000 staff and
transports 322 million passengers and 54 million tons
of goods every year

The solution
Integration into standardized data-center
environment
Creation of synergies via jointly used platforms

The challenge
Operation of the entire central IT infrastructure
Heterogeneous system landscape
More than 100 different services: mainframe, realtime information systems, etc.

Customer benefits
Transparent services
Clearly defined SLAs that reflect the business
criticality of individual systems
Volume-based charging
Clear distinction between service provider and
customer

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

NETWORK, PRODUCTS &


INNOVATION
B2B

SERVICE & BRAND

51

INNOVATION
THINK TANKs
Digital Business Unit

Group-wide development
and management of
innovative products,
services & business models
Core task areas:
innovation management,
platform business, product
development, device and
partner management
DEUTSCHE TELEKOM

T-Systems
Innovation Center

T-Labs

Development and backing


of new ideas in start-ups and
spin-offs
Support/challenge/
rethink

StrategY & Transformation

T-Venture

Integration of
customers/partners directly
into the innovation process
Development of new ideas
and solution approaches
Access to young, talented
individuals through
university partnerships

Network, Products & INNOVATION


Innovation: Think Tanks

Investment in/venture
capital for innovative
business ideas
Key facts 2001-2013:
129 investments
EUR 396 million invested
32 exits
Objective: to generate profit
and synergies

Service & BRAND

Hubraum Incubator

Backing/active realization of
new business models from
start-ups
8-week program in
cooperation with General
Assembly and Betahaus

52

INNOVATION
SUCCESS STORIES
Example: Entertain

Example: mytaxi.net

In-house development
IPTV market launch in 2006
Multi-functional, networked & interactive
Entertain to-go: via tablet, PC & smartphone

DEUTSCHE TELEKOM

StrategY & Transformation

Advancement of business idea by Intelligent Apps GmbH


Launched in 2011
Went international in 2012
Revolutionizing the taxi market
2014: successful realization/profitable Exit (sale)

Network, Products & INNOVATION


Innovation: Success Stories

Service & BRAND

53

DEUTSCHE TELEKOM COMPANY PRESENTATION


OVERVIEW

01 Deutsche Telekom
02 Strategy & Transformation
03 Network, Products & Innovation
04 Service & Brand

54

BEST CUSTOMER SERVICE


EXAMPLE: Germany
Awards for customer service

DEUTSCHE TELEKOM

StrategY & Transformation

Awarded regularly:
TV technical inspection services good seal for customer service
European Business Award: EU accolade awarded for excellence and an innovative and
successful business model throughout Europe

Customer service

Technical service

83 million customer contacts per year


70 million phone calls per year
13 million letters/faxes/e-mails per year
Customer service in Web 2.0:
Telekom helps on Facebook and Twitter
feedback platform

20,000 technical service employees

Network, Products & INNOVATION

Service & BRAND


Best Customer Service

Daily workload ():


25,000 customer lines provisioned
18,000 customer contacts by phone

7,000 on-site installations


19,000 customer line faults cleared

55

UNSERE MARKENPOSITIONIERUNG ERLEBEN, WAS VERBINDET

OUR BRAND POSITIONING


LIFE IS FOR SHARING

DEUTSCHE TELEKOM

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND


Brand Positioning

56

OUR BRAND POSITIONING


LIFE IS FOR SHARING
International Brand

DEUTSCHE TELEKOM

Active Tv Commercials

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND


Brand Positioning

57

THANK YOU!

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