Deutsche Telekom Company presentation 2021

Page created by Margaret Moran
 
CONTINUE READING
Deutsche Telekom Company presentation 2021
Deutsche Telekom
Company
presentation
2021
Deutsche Telekom Company presentation 2021
Disclaimer
This presentation contains forward-looking statements that reflect the           underlying any of these statements prove incorrect, our actual performance
current views of Deutsche Telekom management with respect to future              may materially differ from the performance expressed or implied by
events. These forward-looking statements include statements with regard to       forward-looking statements. We can offer no assurance that our estimates
the expected development of revenue, earnings, profits from operations,          or expectations will be achieved. Without prejudice to existing obligations
depreciation and amortization, cash flows, and personnel-related measures.       under capital market law, we do not assume any obligation to update
You should consider them with caution. Such statements are subject to risks      forward-looking statements to take new information or future events into
and uncertainties, most of which are difficult to predict and are generally      account or otherwise.
beyond Deutsche Telekom’s control. Among the factors that might influence        In addition to figures prepared in accordance with IFRS, Deutsche Telekom
our ability to achieve our objectives are the progress of our workforce          also presents alternative performance measures, including, among others,
reduction initiative and other cost-saving measures, and the impact of other     EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA after leases,
significant strategic, labor, or business initiatives, including acquisitions,   adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow,
dispositions and business combinations, and our network upgrade and              free cash flow after leases, gross debt, net debt after leases, and net debt.
expansion initiatives. In addition, stronger than expected competition,          These alternative performance measures should be considered in addition
technological change, legal proceedings, and regulatory developments,            to, but not as a substitute for, the information prepared in accordance with
among other factors, may have a material adverse effect on our costs and         IFRS. Alternative performance measures are not subject to IFRS or any other
revenue development. Further, the economic downturn in our markets, and          generally accepted accounting principles. Other companies may define
changes in interest and currency exchange rates, may also have an impact         these terms in different ways.
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

                                                                                                                                                                 2
Deutsche Telekom Company presentation 2021
Company presentation

01 Profile

02 Strategy & Transformation

03 Network, Products & Innovation

04 Service & Brand
Deutsche Telekom Company presentation 2021
Brief and simple

Our keyfacts
                                                                     226,291
                       27.4 mn                                       employees worldwide*

                       fixed-network lines
                                                                                    € 101.0 bn
                                                                                    revenue in 2020

 21.7 mn
 broadband customers
                                241.8 mn
                                mobile customers

                                             Figures based on annual report 2020.
                                                                                                      4
                                             * Reporting date December 31, 2020
Deutsche Telekom Company presentation 2021
Deutsche Telekom

Profile

               Customers                                                       Markets                                    Numbers                                Employees &
                                                                                                                                                                responsibility
• 241.8 mn mobile customers                                  • Present in > 50 countries                     • Revenue € 101.0 bn                       • Employees worldwide: 226,291
• 27.4 mn fixed-network lines                                • Germany, Europe and the USA:                  • Adjusted EBITDA AL1                        (Reporting date Dec. 31, 2020)

• 21.7 mn broadband lines                                      with own infrastructure                         € 35.0 bn                                • 4,905 trainees and cooperative
                                                             • T-Systems: global presence &                  • Free Cashflow AL1 € 6.3 bn                 degree students in Germany
• Approx. 8.9 mn TV customers
                                                               alliances via partners                                                                   • Pioneer of social issues
                                                                                                                                                          (climate protection, data privacy,
                                                                                                                                                          diversity, etc.)

Figures based on annual report 2020.
1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases.

                                                       Profile                  Strategy & Transformation   Network, Products & Innovation   Service & Brand                                   5
Deutsche Telekom Company presentation 2021
Facts & figures

Germany
                                                                                                                                             48.5 mn mobile customers
                                                                                                                                             14.1 mn broadband lines
                                                                                                                                             3.9 mn IPTV customers incl. satellite

                                                                                                                                 € 23.8 bn revenue
                                                                                                                                 € 9.2 bn EBITDA AL1 adjusted
                                                                                                                                 66,051 employees (Reporting date Dec. 31, 2020)
                                                                                                                                 89,032 employees in Germany overall (Dec. 31, 2020)

Figures based on annual report 2020.
1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases.

                                                       Profile                  Strategy & Transformation   Network, Products & Innovation   Service & Brand                           6
Deutsche Telekom Company presentation 2021
Facts & figures

United States & Europe

                                                                                                                                                               Europe
                                                                                                                       45.6 mn mobile customers
                                                                                                                       7.0 mn broadband lines
                                                                                                                       5.1 mn IPTV, satellite, cable customers
 T-Mobile US                                                                                                    € 11.3 bn revenue
102.1 mn branded customers                                                                                      € 3.9 bn EBITDA AL1 adjusted
81.4 mn postpaid customers                                                                                      41,273 employees (Reporting date Dec. 31, 2020)
20.7 mn prepaid customers

$ 70.1 bn revenue
$ 24.0 bn EBITDA AL1 adjusted
71,303 employees (Reporting date Dec. 31, 2020)                                                       Figures based on annual report 2020.
                                                                                                      1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases.

                                  Profile         Strategy & Transformation   Network, Products & Innovation          Service & Brand                                                       7
Deutsche Telekom Company presentation 2021
Facts & figures

T-Systems

                                                                                                                                             € 4.2 bn revenue
                                                                                                                                             € 0.2 bn EBITDA AL1 adjusted
                                                                                                                                             28,395 employees (Reporting date Dec. 31, 2020)

                                                                                                                                             Information technology and
                                                                                                                                             telecommunications
                                                                                                                                             services in all industries:
                                                                                                                                             automotive, finance, transport,
                                                                                                                                             retail & public sector
                                                                                                                                             Pioneer in cloud computing
                                                                                                                                             Corporate customers, multinational
Figures based on annual report 2020.
                                                                                                                                             corporations & public sector
1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases.

                                                       Profile                  Strategy & Transformation   Network, Products & Innovation      Service & Brand                                8
Deutsche Telekom Company presentation 2021
Facts & figures

Group Development
                                                                                                                                     Group Development is to actively manage
                                                                                                                                     and sustainably increase the value of
                                                                                                                                     selected subsidiaries and equity
                                                                                                                                     investments of DT

                                                                                                                                     Supported by more entrepreneurial
                                                                                                                                     freedom and shorter decision paths

                                                                                                                                                6.8 mn mobile customers (TM NL)
                                                                                                                                                0.7 mn broadband lines (TM NL)
                                                                                                                                                35.7 k towers (Germany/DFMG and NL)

                                                                                                                                             € 2.9 bn revenue
                                                                                                                                             € 1.1 bn EBITDA AL1 adjusted
Figures based on annual report 2020.                                                                                                         2,684 employees (Reporting date Dec. 31, 2020)
1 EBITDA After Leases. More details: IFRS 16 – New accounting treatment for leases.

                                                       Profile                  Strategy & Transformation   Network, Products & Innovation     Service & Brand                                9
Deutsche Telekom Company presentation 2021
Corporate Responsibility

We take responsibility
               Data privacy                                              Diversity                                              Sponsorship

Leading role in data privacy & data security        Leading role in societal and                                Commitment to culture & sport
• Data privacy report & Security on the Internet    diversity-related issues                                    • Amateur & professional sports e.g., German
  report                                            • Pioneer as first to introduce Group-wide                    football association (DFB), Bayern Munich,
• Early warning system against cyber attacks          women’s quota                                               Olympic & Paralympic Games, “New sports
                                                                                                                  experience” project in recreational sports
                                                    • Special programs & initiatives to promote
                                                      education & training                                      • Culture/examples:
                                                                                                                  International Beethoven Competition,
                                                    • Modern working models
                                                                                                                  Beethovenfest
                                                    • Exemplary promotion of diversity

                                     Profile       Strategy & Transformation   Network, Products & Innovation      Service & Brand                             10
Corporate Responsibility

We take responsibility
         Sustainability & Social Engagement                                                             Groundbreaking Projects

             Environmental and climate protection                                                  Integrated financial and CR reporting
             E.g., CO2 reduction, efficient use of resources,                                      100% energy from renewable resources until 2021,
             sustainable mobility                                                                  emission reduction by 90% until 2030

             Social engagement & stakeholder mgmt.                                                 Media, but in secure mode
             E.g., promote employees’ social commitments, support                                  offerings for competent media usage
             education and competence in media                                                     for target groups age 9–99

             Sustainable products and innovations                                                  “Blue Angel”
             E.g., environmentally friendly and accessible products,                               all wireless phones tagged with environment label
             efficient data centers, eHealth                                                       “Stop wasting – start caring!”,
                                                                                                   systematic reduction of paper, plastic and electronic waste
             Sustainable supply chain
             E.g., binding requirements for the supply chain,                                      Supplier selection and development:
             inspections and audits                                                                sustainability as a key criterion

             Integrated financial and CR reporting                                                 Success in renowned Ratings & Rankings:
             E.g., mandatory CR KPIs for the entire Group in the annual                            RobecoSAM, oekom, CDP and Sustainalytics etc.
             and CR reports, sustainability indexes

                                   Profile          Strategy & Transformation   Network, Products & Innovation    Service & Brand                                11
How we see ourselves
It is in our nature to seek the company of others:
humans need this interaction in order to move forward.            Our network is an artery pumping life: fast, reliable,
Sharing fosters closeness. It is the very reason we choose to     and secure. 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,
We share events, experiences, and opinions – sometimes even our   and open to dialogue. We identify innovative products
possessions. We share knowledge and our ideas. And quite often,   at an early stage and develop them in collaboration with
by sharing these thoughts, we turn them into something bigger,    our partners. We do all of this better than anyone else.
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          Precisely this is the essence of our work at Deutsche
circumstances, we are a trusted companion in both people’s        Telekom. Together, with passion, focus and sustainability,
private and work lives. Whenever. Wherever. Forever making life   we are entering a world of infinite possibilities for each and
easier for people and enriching it is our mission.                every one of us. It is our contribution to social togetherness.
                                                                  This connects us.
Our guiding principles

Delight our   Get things       Act with respect                 Team                            I am T –         Stay curious
customers       done             & integrity                 Together –                       Count on me          & grow
                                                             Team apart

                     Profile     Strategy & Transformation   Network, Products & Innovation    Service & Brand                  13
Vorstandsmitglieder Deutsche Telekom AG

We are responsive
            Timotheus Höttges                                                                                                                          Birgit Bohle
            Chief Executive Officer (CEO)                                         Adel Al-Saleh                                                        Board member for Human Resources & Legal Affairs,
            Deutsche Telekom AG                                                   Board member for T-Systems                                           Labor Director

                @tim_hoettges                                                             @adel_al_saleh                                                   @bibohle
                linkedin.com/in/timhöttges                                                linkedin.com/in/adel-al-saleh                                    linkedin.com/in/birgit-bohle

                                             Srini Gopalan                                                                      Christian P. Illek
                                             Board member for Germany                                                           Board member for Finance (CFO)
                                                   linkedin.com/in/srini-gopalan-061882                                            linkedin.com/in/christianillek

            Thorsten Langheim                                                               Claudia Nemat                                                           Dominique Leroy
            Board member for USA and                                                        Board member for Technology and Innovation                              Board member for Europe
            Group Development Deutsche Telekom AG                                                @claudianemat                                                          @LeroyDm
                linkedin.com/in/thorstenlangheim                                                 linkedin.com/in/claudianemat                                           be.linkedin.com/in/dominiqueleroy

                                        Profile               Strategy & Transformation              Network, Products & Innovation          Service & Brand                                                14
Company presentation

01 Profile

02 Strategy & Transformation

03 Network, Products & Innovation

04 Service & Brand
Strategy

Our Ambition: Leading European Telco

                                                              Grow
      LEAD IN in
         Lead CUSTOMER     EXPERIENCE
                 customer experience                 LEAD INinTECHNOLOGY
                                                       Lead    technology                            LEAD
                                                                                                     Lead inINbusiness
                                                                                                               BIZ PRODUCTIVITY
                                                                                                                       productivity

           One connectivity                             Integrated                                   Secure ICT solutions
           & perfect service                         gigabit networks                                     & big IoT

                                        Save for growth investments

                      Simplify, digitalize, accelerate & act responsibly

                              Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand                  16
Lead in customer experience

Our FMC+ strategy: Differentiate beyond speed …
                                                                                                                    The “Plus” in FMC+ makes a difference
“The broadband
that can do more!”                                                                                                  • Focus on our core business: seamless, integrated connectivity (FMC)
                                                                                                                      and connected services
                                                                                                                    • More value for our customers by bundling connectivity and additional
                                              Smart Home                                                              services
                                                                                                                    • Selected partnerships to always provide our customers the best
                                                                                                                      possible services
                      Hallo                                              Magenta TV
                     Magenta!                                                                                       • Continuous product and service innovation

                                               FMC/One
                                              connectivity

                      Couch                                          Magenta Security
                    Experience2                                         Portfolio

                                                Gaming

1 FMC = Fixed-Mobile Convergence 2 “Couch Experience” denotes auto configuring WLAN routers for optimal WiFi-connectivity at home

                                                     Profile               Strategy & Transformation               Network, Products & Innovation   Service & Brand                          17
Lead in customer experience

   … and strive for leadership in customer experience
                                                                                                                           Loyalty needs a great and emotionalized customer
   “Moments of truth” along the customer journey                                                                           experience
                                                                                                       illustrative
                                                                                                                           • Best customer experience & fair treatment of our customers
       Ensure timely                       “Soften” 12 month promo                 Reward customer loyalty
       provisioning & proper               roll-off with personalized              – attractive tariffs for                • Improved single contact resolution rate1 with multifunctional service
       CPE installation                    goodies                                 loyal customers
                                                                                                                             teams (“team of experts” approach)
   Net                   Avoid bill shock                                                                                  • Use data to gain better understanding of our customer needs
                                                                Utilize human
Promoter
  Score
                         (e.g. roaming) with
                         proactive customer                     interaction as a                                             (e.g. proactive discovery and handling of problems predictive
  (NPS)                  communication                          differentiator                                               maintenance) while 100% protecting customer privacy and security
                                                                                                                             of their data
                                                                                                      DT
                                                                                                      ambition
                                                                                                      Classical
                                                                                                      telcos

  -4      -2   0     2      4    6     8     10 12 14 16 18 20 22 24 26 28
                                       Contract duration (months)

   1 Single contact resolution rate measures the percentage of customer complaints that were solved after first contact

                                                           Profile                 Strategy & Transformation              Network, Products & Innovation   Service & Brand                           18
Lead in technology

…with integrated gigabit networks
                                                                                                Our ambition is best fixed & mobile network
Smart network rollout to fit investment goals
                                                                                                • Push 5G and fiber rollout both in Germany and in our EU footprint:
                                                                                                  • In mobile (4G & 5G) we strive for a leading position in our markets
                                                                                                  • In fixed we invest into FTTH1
                                                                         Data analytics
  Co-operation with                                                    based site planning      • Expand our 5G leadership position in the US, leveraging synergies after
   competitors in
  white spots & rural                                                                             merger (e.g. enhanced spectrum, cell sites)
         areas
                                                                                                • In parallel, we transform our core using innovative technologies, such
                                                                                                  as NFV2, for more efficiency and further improvement of our services

                                                                  New use cases stationary
                                                                   and on the move drive
                                                                   demand for bandwidth
                                                                     and lower latency

1 Fiber-to-the-Home 2 Network Function Virtualization

                                                        Profile    Strategy & Transformation   Network, Products & Innovation   Service & Brand                             19
Lead in business productivity

Strengthen competitiveness & digitalization in B2B
                                                                          Ambition: “Partner of choice in digitization”
DT as a trusted partner with strong B2B brand
and customer base, and a strong portfolio                                 • Global connectivity solutions are the core of our value proposition for
                                                                            business customers (5G, MPLS+, SD-WAN, M2M platforms, campus
                                                                            networks)
                                                                          • IoT, Security and digital solutions complement our B2B connectivity
                                                                            offering
  TC business         Security & IOT       IT business                    • Large national access network & sales force and strong reputation
  long-term           entrepreneurial      focused
  competitiveness     freedom              transformation                   as ICT provider (8x isg/Experton benchmark leader)

                                 Profile     Strategy & Transformation   Network, Products & Innovation   Service & Brand                             20
Save for growth investments

Drive efficiency…
                                                                          Key efficiency levers for DT
Our efficiency levers are based on two pillars
                                                                          • Push self-service, reduce product complexity
                                                                          • Automate E2E processes (e.g. service bots)
                                                                          • Use data analytics for operations (e.g. predictive maintenance)

                                                                          • Focus central initiatives and invest in best talents
                                                                          • Leverage cross-country synergies (e.g. one app, smart speaker)
                                                                          • “Start small and earn the right to advance”
 Digitalization               Economies of Skills
 Increase organizational      Increase productivity by
 efficiency by automation     focusing on skills and
 of manual processes          successful products

                              Profile        Strategy & Transformation   Network, Products & Innovation   Service & Brand                     21
Save for growth investments

…to fund investments for future growth
                                                                                                      We save money to invest into the future
DT’s innovation vehicles and focus areas                                                              Major investment areas
        CIF                                      Corporate Innovation Fund for internal               • We heavily invest into our network (e.g. > 4 € bn annually in Germany1)
                                                 seed & acceleration topics
                                                                                                      • And have some financial leeway for potential inorganic investments
                                                 Innovative products developed by cross-
                                                 functional teams in agile collaboration              Our innovation guidelines
                                                 formats
                                                 Start-up incubator, providing support with           • We push innovation in the focus areas of our strategy
                                                 infrastructure, logistics & funding                    (e.g. 5G Edge, Campus Networks) via central funding
                                                                                                      • We accelerate the development and time to market of our innovation
         T-LABS                     AI Foundry   Internal research and development department
                                                                                                        priorities with a wide range of innovation vehicles
                                                 Financial investments in external
                                                 companies

                                                 Strategic investments in external
     TIP 2.0                                     companies

 Partnerships                                    Joint innovation projects with partners

                                                 Spin-off investments emerged from CIF
    Spin Offs                                    projects

1 Cash Capex segment Germany without investment in spectrum

                                                   Profile               Strategy & Transformation   Network, Products & Innovation   Service & Brand                             22
Simplify, digitalize, accelerate & act responsibly

Think digital – act simple with an agile Mindset
                                                                              What does it take to make it work?
Vision: simple, automated “one click” experience
                                                                              • Marketing & Sales: Push online channels & personalized offerings
                                                                              • Customer Service: Drive customer self-service (app, chat) and 360°
       Enhance digital                                                          customer view
 touchpoints & ensure 100%
  digital customer journeys                                                   • Network & IT: Increase investment efficiency; shorter time-to-market in IT
                                                                              • Steering & Support: Push employee self-service and automate repetitive
                                                   Simple,                      tasks (e.g. planning/ forecasting)
                                                 transparent                  • Organization: “New work” and agile collaboration, incl. upskilling of
                                               products, one-
                                               click processes                  employees

                                  Data-empowered intelligence for
                                 100% data-driven decision making

                                 Profile         Strategy & Transformation   Network, Products & Innovation   Service & Brand                                23
Simplify, digitalize, accelerate & act responsibly

Act responsibly both socially & environmentally
                                                                                 Keep adapting to consumer trends & social challenges
“Act responsible” means …
                                                                                 • Enable digital participation for customers and our society by fostering
     ... to develop        ... to strenghten        ... to achieve                 digital competencies & responsibility as well as ethics
          digital               employee            DT’s climate                 • Strengthen employee engagement & willingness to change
     competences              engagement                targets
                                                                                 • Vigorous execution of our climate strategy1, and enhancing the
                                                                                   protection of resources and circular economy with our strategic initiative
                                                                                   program “We care for our planet”

  and responsibility in   and willingness to     and to protect other
  our society             change                 resources

1 DT climate strategy

                                       Profile      Strategy & Transformation   Network, Products & Innovation   Service & Brand                                24
Company presentation

01 Profile

02 Strategy & Transformation

03 Network, Products & Innovation

04 Service & Brand
Multi award-winner:

Our best network

                              5G
         30.000
         mobile sites (GER)
                                   Fiber
Facts, figures, data

Our best network at a glance (Germany)
Fixed network                                                                                                         Mobile network
Up to 250 Mbit/s                      Up to 100 Mbit/s                                                               Up to 300 Mbit/s
for 23.4 million households1          for 32.5 million households1                                                   mobile surfing using LTE

                                                                                                                                 98.2% LTE network coverage
    17,000 new street cabinets                                                                                                   mobile broadband spread over 87% area coverage1
    Almost every 30 mins a new street cabinet for
    highspeed internet2

                                                                                                                            99.8% 2G voice coverage
                                                                                                                            mobile voice telephony

      1.7 million lines with FTTH
      in Germany1
                                                                                                                           5G coverage: 99% of the population
                                                                                                                           by 2025 and 90% area coverage

Approx. € 70,000/km                  Over 550,000 km                                                                                         30,000 sites
fiber-optic costs                    Of fiber-optic cables                                                                                   target for 2024: up to 10,000 new sites

1 As at Q1/2020 2 In 2019

                                           Profile            Strategy & Transformation   Network, Products & Innovation        Service & Brand                                        27
Prizes and awards

Our best network at a glance
Best network coverage, bandwidth, and stability.
Both fixed and mobile.
• Broadband quality leader in mobile and fixed networks
• Innovative products
• Biggest bandwidths
• Best network coverage

Multi award-winner.
• For the 6th time in a row: Deutsche Telekom
  has won the major mobile network tests of
  magazines connect and CHIP
• Car Connectivity Award: 7 out of 10 readers voted
  Deutsche Telekom the best in-car network
• TÜV certified: Telekom Deutschland offers LTE
  mobile network quality, based on the QvK standard.1

1 QvK = Quality rating from the customer’s perspective using the following criteria: “call
setup success rate,” “call stability,” and “voice quality,” as well as “data transfer success
rate” and “service quality based on average data throughput.”

                                                            Profile                  Strategy & Transformation   Network, Products & Innovation   Service & Brand   28
We offer the best network coverage, bandwidth,
and stability. Both fixed and mobile.

Network coverage                        Hybrid                         Vectoring                      Investments                           5G
Our LTE network reaches       Our hybrid connection           With our vectoring rollout,       Der Ausbau breitbandiger        We are a major driving force
98.1% of the population in    combines the strengths of       we are optimizing the             Netze umfasst den Großteil      in the development and
Germany. We deliver top       the fixed network and the       capacity and speed of our         des Investitionsvolumens        rollout of 5G.
speeds with the most          LTE mobile network:             existing network. With            des Konzerns im Inland von
cutting-edge mobile           maximum performance at          Supervectoring we increase        derzeit mehr als 5 Mrd. €
network and largest fiber     an increased data load.         performance up to 250             pro Jahr.
optic network in Germany.                                     Mbit, 22 million households
In total, we have laid over                                   have access to
550,000 km of fiber optic                                     supervectoring..
cables.

                                  Profile        Strategy & Transformation   Network, Products & Innovation   Service & Brand                                  29
Network requirements are becoming more complex

The network of the future is setting the courset
The fiber optic and mobile networks in Germany require further expansion and construction.

      Bandwidth                Network coverage                    User experience                          Devices                       Latency
The number of broadband        Complexity is spiraling –        Virtual and augmented             The demand for broadband        Low latency will be
lines is continuing to rise.   it’s not all just about          reality are creating new          is booming due to the           essential for tomorrow’s
New applications need          bandwidth any more. Fiber        user experiences; self-           continual growth of             network, for example for
faster connections and a       optics, vectoring, LTE, and      driving vehicles are just         networked devices and           self-driving cars or gaming.
bigger volume of data.         hybrid is the sought-after       one example. As VR                wearables. Permanent            Round trip delay must be
                               technology mix to meet the       applications require five         internet connectivity is        minimized in the mobile
                               need for widespread              times the bandwidth of            posing whole new                network to enable “real-
                               network coverage.                HDTV, the burden on               challenges for global           time communication,” for
                                                                networks will continue to         networks.                       example through 5G.
                                                                grow significantly.

                                   Profile         Strategy & Transformation   Network, Products & Innovation   Service & Brand                                  30
Products for our

Consumers
                   MagentaEINS

                            MagentaTV

                         Magenta
                         SmartHome
Products and services for consumers

We have the best offers
We offer products and services that are innovative, safe, and simple too.

          MagentaEINS                                            MagentaTV                                          Magenta SmartHome

We are always working on ways to                  It offers something for everyone:                           The control hub for the smart home.
improve MagentaEINS.                              TV, series, movies, shows, and                              Connect smart devices from different
                                                  documentaries on Megathek,                                  brands at the touch of a button and
                                                  MagentaSport, plus access to streaming                      control them with an app.
                                                  services.

                                   Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand                            32
Magenta EINS – A one-stop shop

Call, surf, watch TV, stream.
Numerous benefits always included. All from Deutsche Telekom.

                                                                    Better price & better performance
                                                                    • Save €5 per month on your cell phone bill
                                                                    • Twice the data volume
                                                                    • Flat from fixed line to all mobile networks
                                                                    • Twice the data volume also for Family Cards

                                                                    More service
                                                                    • Preferential provision of the latest top smartphones on their launch
                                                                    • Free replacement phone within 48 hours
                                                                    • Expert service available incredibly fast, for families too

                                                                    MagentaEINS Prepaid
                                                                    Combine fixed line and prepaid and get 1GB additional data volume/month

                             Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand                           33
Magenta TV

One for all
Using MagentaTV our customers watch their favourite shows whenever they want – even on the go.

                                                                  Huge range of shows on more than 100 TV networks, more than 20 of which
                                                                  are in HD.
                                                                  Megathek – unique content included in MagentaTV.
                                                                  Originals and exclusives; the best of ARD & ZDF, top international series, plus
                                                                  highlights for kids and teens.
                                                                  Best partner content with access to streaming services such as Netflix,
                                                                  Amazon, Sky and Videoload plus video and media libraries.
                                                                  TV on demand at any time through restart, 7-day replay, timeshift,
                                                                  and recording.
                                                                  Intuitive operation with everything at a glance.
                                                                  Watch TV anytime, anywhere with MagentaTV.
                                                                  New: MagentaTV stick
                                                                  MagentaTV and other streaming partners flexible to go on (almost every) TV
                                                                  – easy to connect via HDMI and WLAN.

                          Profile    Strategy & Transformation   Network, Products & Innovation   Service & Brand                                   34
Magenta Smarthome

Digitalization is reaching homes
With Magenta SmartHome, our customers have control over their home 24/7 – even when they’re on the move.

                                                                  Feel even more at home: Safety, energy savings, convenience, and the
                                                                  peace of mind that everything’s fine at home.
                                                                  More than 300 devices in one app: SONOS, Philips, Amazon, eQ-3,
                                                                  Netatmo, OSRAM, Miele, D-Link, and many more – everything works in
                                                                  synch with Magenta SmartHome.
                                                                  Intuitive setup and operation via an app and voice control, and now using
                                                                  Deutsche Telekom’s Smart Speaker too – with no drilling or screwing
                                                                  required.
                                                                  Future-proof thanks to intelligent networking via the Qivicon platform with
                                                                  regular updates and a continually growing portfolio of many prominent
                                                                  partners.
                                                                  Data security thanks to data storage in German data centers and Deutsche
                                                                  Telekom’s strict data protection policy.
                                                                  Free to Deutsche Telekom fixed network customers with a Speedport
                                                                  smart router.

                          Profile    Strategy & Transformation   Network, Products & Innovation   Service & Brand                               35
Services for our

Business customers

                         Security

                                Digital
                                             Cloud &
          Connectivity                    Infrastructure
We have systematic approach: Our focus areas

WE
                                                                                    Connectivity                     Digital
... make digitalization possible
... enable and operate multi-cloud environments
... offer modern security services
based on Deutsche Telekom's best network

                                                                                    Cloud &
                                                                                                                     Security
                                                                                    Infrastructure

                          Profile    Strategy & Transformation   Network, Products & Innovation    Service & Brand              37
Digital
                                                                                       • Smart Factory
                                                                                       • IT Modernization
                                                                                       • AI & Automation
                                                                                       • SAP Solutions
                                                                                       • New Work Solutions
Shaping the future requires a reliable and                                             • Digital Reliability
competent provider of digital services, the Cloud,                                     • Connected Mobility
IoT, security and connectivity – with an agile and                                     • Intelligent Enterprise
                                                                                       • Blockchain
end-to-end approach.
                                                                                       • Edge Computing
                                                                                       • Customer Service Solutions
                                                                                         / Self Services
                                                                                       • Digital Marketing
                                                                                       • Digital Sales & E-Commerce
                                                                                       • Digital Consulting

                     Profile   Strategy & Transformation   Network, Products & Innovation     Service & Brand         38
We are digital by nature
Corona warning app:
Highly complex solution with many
partners created in just 50 days

Beijing Airport:
Digital control of all processes

Swiss Federal Railways:
NOVA - One trip, one ticket

RUD:
Digitized chains thanks to
Industrial Internet of Things

                                   Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand   39
Security

Deutsche Telekom Security GmbH is responsible
for the global security of the Telekom Group and
                                                                                       • Managed Cyber Defense
provides the same professional protection to all                                       • Cloud & Data Security
other customers. From small businesses to DAX-                                         • Network Security
listed corporations and public authorities. We are                                     • Endpoint Security
a managed security service provider and offer the                                      • Industrial & IoT Security
appropriate consulting. All security solutions                                         • Professional Services
from a single source.

                     Profile   Strategy & Transformation   Network, Products & Innovation     Service & Brand        40
Digitization needs Security
KAESER:
Secure Enterprise Mobility Management

Otto Group:
Enterprise Risk Management

State of Saarland:
Modern, flexible and comprehensive
encryption for state authorities

Congstar:
Security solution for data
analysis on AWS platform

                              Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand   41
Cloud & Infrastructure

With our “Cloud First” strategy, companies                                            • Multi-Cloud Environments:
benefit from the experience of a provider of                                            Private Cloud, Sovereign, Public Cloud
                                                                                      • Cloud Migration Framework for SAP, non-
multi-cloud orchestration and a cloud pioneer                                           SAP and Mainframe
with over 10 years of experience. Together with                                       • SAP S/4 HANA Consulting &
strategic partners, T-Systems offers an                                                 Transformation
                                                                                      • SAP on any Cloud
assessment of existing IT, strategy consulting,
                                                                                      • SAP Digital Transformation
migration to the cloud and cloud management as
                                                                                      • BI & Analytics
the basis for customers’ digitalization.                                              • Smart Security for SAP Solutions

                    Profile   Strategy & Transformation   Network, Products & Innovation    Service & Brand                       42
Cloud is in our DNA
Valora – Private Cloud:
We manage your cloud services in our own high-security data
centers and support you in managing the cloud services of other
providers.

Continental – Public Cloud:
We orchestrate your public cloud universe –
in single and multi-cloud environments.

European Automotive Alliance – Sovereign Cloud:
We operate public cloud infrastructure made in Europe – with
hardware and software from European suppliers. According to
Gaia-X rules.

                               Profile        Strategy & Transformation   Network, Products & Innovation   Service & Brand   43
Connectivity

                                                                                      • (SD) WAN- / LAN-Services
                                                                                      • Access: fixed line, mobile communications,
We connect people, data and applications.                                               M2M
On the Deutsche Telekom network, in accordance                                        • Campus Networks (4G / 5G)
with European data protection law. With the                                           • Mobile Devices & Accessories
reliability of the best network, highly secure                                        • Mobile Solutions
                                                                                        (national & international)
data centers, a comprehensive cloud ecosystem.
                                                                                      • UCC Cloud, Services
And with global partnerships across continents.                                         & Infrastructure
Connectivity is the backbone of your                                                  • VoIP / SIP-Services
digitalization.                                                                       • Internet of Things
                                                                                      • Mobile Applications
                                                                                      • Business Analytics

                    Profile   Strategy & Transformation   Network, Products & Innovation     Service & Brand                         44
Connectivity is our basis
Siemens:
High-performance SD-WAN
for digital transformation

Osram:
On the way to the smart factory with a 5G
campus network and edge computing

Uniper:
Stable corporate network for high availability
of business-critical applications

VDM Metals:
Tailor-made, secure MPLS network
for the retail sector

                                Profile          Strategy & Transformation   Network, Products & Innovation   Service & Brand   45
Leading global major customers trust us
Long term customer                      In cooperation with:

relationships and precise
knowledge of the respective
industry sectors are
the basis of our success.

  More references
  and projects

                              Profile        Strategy & Transformation   Network, Products & Innovation   Service & Brand   46
We have the right partners on board
                                                     In cooperation with:

> 500 prominent
technology and industry
partners, as well as
numerous start-ups

                    Profile   Strategy & Transformation     Network, Products & Innovation   Service & Brand   47
Agility
             Collaboration
                                       Focus

Open to the new

Innovation at
Deutsche Telekom
Innovation at Deutsche Telekom
                                 Long-term Innovation priorities backing our strategy

Collaboration
                                   Lead in
                                                                    Best Connectivity Exp,        Superior Entertainment        Ott-like
                                   customer
Working together                                                    Seamless & Unlimited               Experience            Home Experience
                                   experience
across divisions

                                   Lead in                         Leading In 5g Technology
                                                                                                  Network Differentiation    Sustainable Telco
                                   technology                            & Edge Cloud

Agility                            Lead in
                                                                     Best Global Cloud               Trusted Security             Superior
                                   business                        Connectivity Experience              Experience          Business Productivity
                                   productivity
Speed & flexibility
through financial
stakes                             Simplify, digitize,
                                                                  Voicification For Dt Services   Big Data & Ai-enabled       Orchestration &
                                   accelerate,                             & Partners               Digital Experience          Open Apis
                                   act responsibly

                      Profile   Strategy & Transformation   Network, Products & Innovation         Service & Brand                                  49
Innovation in cooperation with Partners worldwide

        Group Partnering                                             hub:raum                                                   T-Labs

Promoting innovation worldwide                      Innovation transfer from the world of                       Research from the world’s best
                                                    start-ups                                                   universities
Increase in revenue and differentiation
through complete integration into                   Early development of new business ideas.                    Developing feasible ideas -T-Labs
Deutsche Telekom’s product and                      Continuous ‘scouting’, start-up programs,                   identifies relevant approaches from the
development processes                               strategic investments                                       academic world

                                                                  Time to market
short term                                                                                                                                     long term

                                     Profile   Strategy & Transformation   Network, Products & Innovation   Service & Brand                                50
Examples

Innovation topics contributing to strategic pillars
            Smart Home                          Edge Cloud                           Campus Networks                                   Voicification

Best Smart Home experience1            Cloud closer to devices &                Exclusive networks increase                  Voicification to increase
                                       customers                                performance                                  convenience
Magenta Smart Home as integrated       Edge cloud brings data processing        Dedicated cellular connectivity,             Smart voice control to further
part of router & broadband             to the edge of the network, closer to    edge computing and integrated                enhance the way our customers
proposition, ready to reach mass       devices and customers, and               digital applications empower                 experience our services, and to
market scale                           enables low latency use cases such       enterprises’ production automation,          simplify interaction with technology
                                       as augmented reality or connected        flexibility and resilience.                  and devices
                                       driving

                 Lead in                              Lead in                                    Lead in                                Simplify, digitize,
           customer experience                      technology                            business productivity                     accelerate, act responsibly
1 Connect Magazine Survey 2020

                                   Profile         Strategy & Transformation   Network, Products & Innovation     Service & Brand                                   51
Company presentation

01 Profile

02 Strategy & Transformation

03 Network, Products & Innovation

04 Service & Brand
approx.   100 million
               customer contacts/year

                                Digital service
                                “Telekom hilft”, MagentaApp,
                                VoiceID, …

Award winner
                               > 7 million
                               lines provisioned/year
Our service
Best customer service

Example: Germany

 Awards for outstanding customer                                    Customer service                                       Workload field service
              service
• Awarded regularly: TÜV’s “good” seal of approval     • 45 million phone calls per year                          • 18,000 on-site customer appointments per day
  for customer service                                 • 9.5 million letters/faxes/emails per year                • 7.3 million subscriber lines provisioned per year
• European Business Award: EU accolade awarded         • Customer service in SocialMedia:                         • 2.8 million customer line faults cleared per year
  for excellence                                         “Telekom hilft” [Telekom helps] on Facebook
  and an innovative and successful business model        and Twitter feedback platform
  throughout Europe
                                                       • Customer service via app:
                                                         MagentaService app and DSL Hilfe app

                                    Profile          Strategy & Transformation   Network, Products & Innovation         Service & Brand                                 54
Our objective is to offer the best customer service
Our customer service is available everywhere in many different forms

Our customer service is tailor-made, cross-channel, digital, yet has the personal touch.

          Reliable service partner                                          Online channels                                               Telekom Shop
   for consumers and business customers                                     Our digital service                                      Showcase for our customers
• 30,000 people1 ensure the best customer experience        • We are the first service provider in Germany to have a       • We are the source of inspiration for digital solutions and
  with approx. 100 million instances of customer contact      website that looks the same on desktops, tablets, and          bring Telekom to life towards customers
  annually                                                    smartphones
                                                                                                                           • We are the personal companion and feel responsible for
• We advise, sell, install, and troubleshoot                • Omni-channel services offer seamless customer                  all needs of our customers
• We support our customers on the phone and on site –         service contact                                              • We are quality leader in sales – either private or business
  with an expert, personal touch                            • Europe’s largest customer service community with               customers
• We develop and distribute customized ICT services from      “Kunden helfen Kunden” [Customers Help Customers]            • We are not satisfied before our customers are happy
                                                              and Telekom hilft [Telekom helps].
  a single source

1 As at July 2018

                                               Profile     Strategy & Transformation      Network, Products & Innovation         Service & Brand                                           55
Our range of customer service options

Leading in the sector

      Dialog and service quality across
          digital contact channels                                                                               MeinMagenta app

 • As a communications provider, we offer the best overall tracking          • MeinMagenta app is the most comprehensive service app from any telecommunications provider and
   across all sectors and keep our customers satisfied through                 offers the most extensive range of functions for mobile and fixed line customers
   digital contact channels such as Facebook, Twitter, video chats,
                                                                             • MeinMagenta app was awarded two consecutive years (2018/19)
   or online communities
                                                                               best telco app in Germany by magazine Connect
 • We are the only provider to be strongly positioned across all
                                                                             • MeinMagenta app offers wide service range, e.g. check data usage and costs, view bills, review rates
   digital channels and touchpoints compared with direct
                                                                               and contracts, online help, personal offers or router installation
   competitors
                                                                             • AskMagenta is an AI-based chatbot - fully app integrated it supports customers in (almost) all service
 • Our “Telekom hilft” customer service brand is considered the
                                                                               dimensions, clears requests or intelligently forwards to (human) colleagues (live chat & call back)
   most appealing

                                          Profile            Strategy & Transformation      Network, Products & Innovation       Service & Brand                                        56
Our range of customer service options

New services for our customers

    My Telekom                    Chatbots                   Callback                     Voice ID                      WhatsApp                  MediaTransfer
    technician                                                service
 • We tell the customer      • Our digital service     • Our Deutsche Telekom      • Our customers can use          • Quick, easy and             • MediaTransfer is a
   when the service            assistants answer         customers don’t have        their own voice to prove         intuitive channel to get      simple digital entry
   technician will be on       customer queries          to wait on the line; we     their identity on the            in contact to Telekom via     channel for solving
   site                        quickly, simply, and      call them back              hotline                          WhatsApp                      customer requests in
                               around the clock                                                                                                     first contact
 • The customer can                                    • Customers can be put      • The process is secure          • Customers place
   postpone                                              through to the same         and extremely simple             requests no matter          • Customer can send
   appointments using the                                consultant again          • Customers no longer              where they are. The           documents, photos and
   online service                                                                    have to remember their           customers don’t have to       signatures directly via
                                                                                                                      adjust to DT, we follow       link during call – easy
 • Live service technician                                                           customer number
   status                                                                                                             customer preferences          without additional
                                                                                                                    • Questions anytime via         codes or entry login-ins
 • The online service
   offers a direct channel                                                                                            preferred channels
   for customer feedback

                                       Profile        Strategy & Transformation    Network, Products & Innovation        Service & Brand                                       57
Our brand positioning

                                  Life is for sharing

We enhance people’s lives by
enabling them to participate in
communities and share special
moments – everywhere in the
world.
BRAND ASPIRATION
                                                                How do we bring our promise to life?
Brand
positioning
                                                                               BRAND PROMISE
                                                                              What is our mission?

                          We help society to bridge                                                                        We build a recognized digital
                                 the digital divide                            BRAND CORE                                   company where people like to work
              We take a stance in societal issues                        Implicit customer benefit                            We reshape the workspace,
                that enable people to make the                                                                                 pioneer new working models and
                 most of digital technology, so                                                                                digital competencies, so that our
                   that nobody is left behind.                       Strong                             Vital                   business transforms
                                                                                                                                from inside out.
                                                                   Reliable                             Inspiring

                                                                 Eye to eye                             Authentic

                    We transform businesses                           Open                              Honest
                           and public sector                                                                                   We make everyday life smarter
                    We use our digital expertise,                    Participation          Enriching life                    We provide digital products and
                so that businesses can thrive and                                                                            services, so that life becomes
                  public institutions can provide a                                  Joint                                  easier and more enjoyable.
                     better quality of life to citizens.                          experiences

                                                                      We connect everyone to the
                                                                        opportunities of now.

                                                                             We liberate the internet
                                                           We deliver a superior network experience, so that everyone is
                                                                 connected seamlessly, any time and anywhere.
Our brand world

“Let’s fall in love with magenta”
Magenta – much more than just the DT company colour and the most
important element of our brand appearance.

For us Magenta goes one step further – it has become a real feeling to us.
With our lifestyle products our employees show their pride and brand
commitment externally.

In our shop we show our favourite colour: sometimes loud, sometimes
more silent – but always stylish and up-to-date.

                      lovemagenta.com
Brand Value Increase           2021 // US $ 51.1 bn.

+500%
Brand Value Ranking 2021
by Brand Finance plc, London

2007 // US $ 8.5 bn.
Most valuable European Telco Brand
Brand Value Ranking 2021 by Brand Finance plc, London

                                                                                      # 23

                                                                               # 89

                                                                        # 91

                                                                # 339

                                                        # 335
                                                                                             62
You can also read