deutsche telekom ir deck - june 2015

1

DEUTSCHE TELEKOMCOMPANY PRESENTATION

DEUTSCHE TELEKOM StrategY & Transformation Network, Products & INNOVATION Service & BRAND

DEUTSCHE TELEKOM COMPANY PRESENTATIONOVERVIEW

2

Deutsche Telekom: profile

StrategY & Transformation

Network, Products & INNOVATION

Service & BRAND


3

DEUTSCHE TELEKOMPROFILE

CUSTOMERS & MARKETS Facts & figures

Telekom in figures, 2014

Revenue € 62.7 bn

Adjusted EBITDA€ 17.6 bn

Free cash flow € 4.6 bn

Among the top 100worldwide(#105, Fortune500 list)

Employees & responsibility

Employees worldwide: 228,000

8,900 trainees and cooperative degree students in Germany

Pioneer of social issues (climate protection, data privacy, diversity, etc.)

Customers

>151 mmobile customers

>30 m fixed-network customers/>17 m broadband customers

Approx. 6.1 m TV customers Some 1.6 m managed

workplace systems

Markets

Present in 50 countries

Germany, Europe and the USA: with own infrastructure

T-Systems: global presence & alliances via partners

Source: DT 2014 annual report/TMUS annual report to shareholders 2014

Customers & markets, facts & figures


GERMANY

4

Financial figures taken from DT's 2014 annual report

39 million mobile customers

Biggest (V) DSL provider in Germany

12.4 million broadband lines

2.4 million IPTV customers incl. satellite

€ 22.3 billion revenue

€ 8.8 billion EBITDA

68,754 employees

114,749 employees in Germany overall

Facts & figures: Germany


5

Europe & United states

Direct shareholdings

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

>111 million mobile customersin the Europe & U.S. markets

T-Mobile US:55 million mobile customers

Europe: Present in 13 countries

56 million mobile customers

5 million broadband lines

3.7 million IPTV, satellite, cable customers

iPhone in all European markets

€ 13 billion revenue


51,982 employees

USD 29.6 billion revenue

USD 5,6 billion EBITDA

39,683 employees

Facts & figures: EU & US


6

T-SYSTEMS

Financial figures taken from DT's 2014 annual report

€ 8.6 billion revenue


47,762 employees

Information technology and telecommunications

services in all industries: automotive, finance, transport, retail & public sector

Pioneer in cloud computingCorporate customers, multinational corporations & public sector

Facts & figures: TSI


Profile 7

HOW WE SEE OURSELVES


Responsibility

responsibility: DATA PRIVACY, SUSTAINABILITY, DIVERSITY & SPONSORSHIP

8

DATA PRIVACY Diversity Sponsorship

Leading role in data privacy & data security

Data Privacy Report & Security on the Internet report

Honeypots as early warningsystem against cyber attacks

Leading role in societal and diversity-related issues

Pioneer as first to introduce Group-wide women's 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 sportse.g., German football association (DFB), Bayern Munich,Olympic & Paralympic Games, "New sports experience" project in recreational sports

Culture/examples: International Beethoven Competition, Beethovenfest

We take responsibility

http://personal.telekom.de/dtag/cms/content/BCO/de/1637916

http://personal.telekom.de/dtag/cms/content/BCO/de/1637916

http://intranet-download.telekom.de/redirect/100825-edutainment.htm

http://intranet-download.telekom.de/redirect/100825-edutainment.htm


Responsibility

responsibility: DATA PRIVACY, SUSTAINABILITY, DIVERSITY & SPONSORSHIP

9

We take responsibilityCORPORATE RESPONSIBILITY

sustainability & social ENGAGEMENT

Social engagement & stakeholder mgmt.E.g., promote employees’ social commitments, support education and competence in media

Sustainable products and innovationsE.g., environmentally friendly and accessible products, efficient data centers, ehealth

Environmental and climate protection

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

Sustainable supply chainE.g., binding requirements for the supply chain, inspections and audits

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

9

GROUNDBREAKING PROJEcTS

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

Supplier selection and development: sustainability as a key criterion

"Blue Angel": first cordless telephone on the market to have the eco-label

Success in respected rating indexes and rankings: oekom, CDP and Sustainalytics, among others


Guiding Principles

OUR GUIDING PRINCIPLES

10

Customer delight and simplicity drive our action

Respect and integrity guide our behaviour

Team together –Team apart

Best place to performand grow

I am T –count on me

11

DEUTSCHE TELEKOM COMPANY PRESENTATIONOVERVIEW

Deutsche Telekom: profil


Network, Products & INNOVATION

Service & BRAND



Trends

sharing

mix and match individualization

convergence

simplicity

convenience synchronity

internet of things digitalization

self-service

apps

virtualizationmodularization bandwidth

coverage

stability

reliability

hybrid networks

All-IP

LTE

softwarization

OTT

open platforms

data is the resourceinteroperability

connected data platforms

data analytics

Industry 4.0

freemiumecosystem

data analytics

network effects

two-sided business model

CHANGING INdustry’s pArAdIGms

12


Customer Trends

Digital enabling of all aspects of life

Individual mix & match

Appification: one use case, one app

Seamless connectivity

Sharing is the new having

Intuitive and simple interfaces – mobile first

Customer trendssharing in a connected world

13

Exemplary device and apps

Phone by Apple

Contract by Telekom

25 different apps1

Telekom.de LTE 16:45 38 %

2

WLANLTE FIBRE

HYBRID

1) Average number of downloaded apps on smart phones (2014) 2) Telekom Service Apps: Magenta Service and Telekom Hilft


Technology Trends

Technology trendsConvergence & Virtualization

14

Software defined networks

Replacing consumer hardware

SOFTWARIZATION

Network function virtualization

Faster Time-to-Market

Higher elasticity

Higher redundancy

Independence from hardware

VIRTUALIZATION

Hybrid

Heterogeneous networks

CONVERGENCE DATA ANALYTICS

Service Programming

Common IP Layer

Control & Automation

CloudInfrastructur

e

Commodity Hardware

Service A Service B

Control & Automation

eSIM virtual set-top box

Fixed net for base load and stability

+

mobile net for additional bandwidth

macro cellmicro cell pico cell

SAP HANA

Instant Results

HADOOP

Infinite Storage

Modern in-memory platform

Transact & analyze data in real-time

Low-cost open source platform

Batch process/ archive infinite amounts of data

Real time business results from big data


Business Model Trends

Business Model TrendsOTT disruption

15

OTT BUSINESS MODELTELCO BUSINESS MODEL

ASSET-LIGHTPORTFOLIO EXTENSION

FREEMIUM SERVICE

SCALE FORREACH

EXPLOITATION OF USER DATA

AD-BASED MONETIZATION

5

1 4

32

Closedplatforms

De-factostandards

Unregulatedmarket

ASSET-HEAVY NETWORK INVEST

USAGE-BASED MONETIZATION

TRANSPORT AND PROTECTION OF

USER DATA

SCALE FOR UTILIZATION

PREMIUM SERVICE

5

4 1

23

Open platforms

Interoperablestandards

Regulatedmarket

DISRUPTION


Business Model Trends

we fight for control over our value points

16

Examples

Dum

b P

ipe

Customer relationships dominated through app and content stores,

payment solutions and online service

Telco service substitution

Infrastructure projects Virtualized access through eSIM

Retailization of device distribution enforced by eSIM

Integrated and simple offers

Seamless connectivity in fixed and mobile

State-of-the-art devices

Strategic terminal management

Hybrid

Reliable and secure service

Digital and omni-channel service

Security

DT moves

OTTmoves

Owned network

Access enabling hardware/ SIM-card

Services (communication,

TV, …)

Device distribution

Billing & contractual relationship

Sales & service channels

Examples


Strategy

OUR strategy

17

LEADING EUROPEAN TELCO

INTEGRATED IP NETWORKS

WIN WITH PARTNERS

BEST CUSTOMER

EXPERIENCE

LEAD INBUSINESS

TRANSFORM PORTFOLIO

EVOLVE FINANCIAL TARGETS & EFFICIENCY

ENCOURAGE LEADERSHIP & PERFORMANCE DEVELOPMENT


Strategy: Integrated IP Networks

our Seamless High performing network

18

Target picture: Integrated

Mobile only

95% LTE pop-coverage1 in 2018 with up to 300Mbps Fiber household footprint of ≈ 80% in 2018 with at least

50 Mbps depending on regulatory adjustments Introduction of super vectoring with more than 250Mbps in

cable footprint Download speed of up to 550Mbps 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 100Mbps in 2018

≈12% of households3 with up to 500Mbps4 in 2018

1.6mn hotspots in 20185

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

1) Outdoor coverage 2) Depending on country 3) In integrated footprint 4) FTTH, FTTB, FTTC, cable/ED3 (cable, esp. in Hungary with Euro-DOCSIS 5) Including FON

SUPERIOR SPEED AND COVERAGE –SEAMLESS ACCESS

TECHNOLOGY LEADERSHIP


Strategy: Integrated IP Networks

our superior production model

19

ALL-IP TRANSFORMATION PAN-EUROPEAN NETWORK INTEGRATED NETWORK STRATEGY

PSTN migration in all NatCos PSTN-Migration Centralized,

virtualized architecture and production platforms

PAN-NET

BEST CONNECTIVITYTIME TO MARKETPLUG & PLAY

COST EFFICIENCY & SIMPLICITY

Vectoring

LTE roll-out

Optical fiber

Hybrid accessHybrid-gerät

2

3

4

1

DIGITAL TRANSFORMATION OF CUSTOMER FACING PROCESSES


Strategy: Best Customer Experience

Simplified tariff scheme

Data as key differentiator

Product world in silos

Every tariff element to be booked separately

Our integrated Customer proposition

20

FROM SEPARATE, COMPLEXTARIFFS… …TO SIMPLIFIED WITHIN SILOS…

Access

DSL

Internet

Mobile

S M L

S M L

Convergent portfolio, also beyond tariffs

Seamless connectivity

ER

SECURITY

LIVINGENTER-

TAINMENT

COMMUNI-CATION

CLOUD

SERVICE

…TO FULLY INTEGRATED TODAY.


Strategy: Win with partners

ACHIEVEMENTS AND AMBITION OF PARTNERING

WIN-WIN-WIN THROUGH PARTNERING

partnering strengthens our customer proposition

21

Subscriber (mn.)

20182014

20182014

Revenue (€ mn.)

2014

Subscriber (mn.)

6.0

1.7

2018

DTPartner

Customers

Platform scale

Loyalty boost

Additional revenues

Partner vs. make

Product reach

Technical enablement

Additional revenues

One-stop shopping

Integrated proposition

Best digital products

6.0

2.3

300

100


Strategy: Lead in Business

Smart Data fuels the next industrial revolution:

Lot sizes of 1

Autonomous robots

Real-time ERP

Open & interoperable platforms for cross-industry data pools

Data security & privacy as key differentiator

High performance network infrastructure & traffic prioritization as enabler

INDUSTRIAL INTERNET

open & interoperable platforms

22

Data Mgmt.

Platform Services

Car IndustrySolutions

SecureAutocloud

Pure Connect.

industry-agnostic industry-specific

M2M Connectivity

Secure data hosting

Open, interoperable platforms

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

Data-driven services (internal data)

OUR CUSTOMERS(SELECTION)

CARDAN

EXAMPLE: CONNECTED CAR


Strategy: Innovation

...is leading edge: e.g. Hybrid, Super-Vectoring, Qivicon

...happens on all levels: networks, processes, platforms and products

...considers today’s and anticipates future customer demands

...is efficient and effective: focused make vs. partner decisions

INNOVATION @ DT...

Access Enhancement

All-IP/PAN-Net

QoS

Hybrid/WiFi

5G

SDN/Virtualization

Super-Vectoring

Carrier-Aggregation/ MIMO

Communication

Security

Wearables

eTransformation

„Steckerleiste“

Strategische Partner

M2M

Cloud

Verticals

Advanced Data Analytics

Open and interoperable platforms

Innovation drives future differentiation

23


WIN WITH PARTNERS

BEST CUSTOMER EXPERIENCE

LEAD INBUSINESS

MagentaEINS/FMC Plus

Smart Home/Qivicon

NGTV

Payment

Ecosystem Management

eSIM

300 Mbit/s


Strategy: Regulation

Regulation needs to keep pace with market realities

24

Enable scale economies to unlock dynamic efficiencies Enable market consolidation Allow co-operations to promote open platforms

and interoperability

SCALE

TELCO-OTT MARKETS MERGE COHERENT REGULATORY FRAMEWORK MANDATORY

ACCESS DEVICES SERVICESUSER

EXPERIENCE

INVESTMENT

REVENUE

Fix regulatory framework to restore industry growth Revise price regulation Allow quality differentiation Develop consistent legal framework enabling

digital innovation

COMPETITIVENESS

Ensure a level playing field with same rules for all players in the value chain Data protection & data security

Interoperability Consumer protection

Create incentives for broadband infrastructure investments Gear regulation towards investment

Harmonize spectrum policy Supply better funding, promoting cost effective

technologies

CONVERGENCE

Telcos OTTs

Cable Media


Strategy: Brand

Most valuable and TRUSTED european telco brand

25

Most valuable European

Telco brand

Most trusted internet

and mobile brand

MOST TRUSTED INTERNET AND MOBILE BRAND1

24

46

24 21 21 19 18 17 159 8

Source: Institut für Demoskopie Allensbach, 2014 1) Share of people who consider these companies to be reliable


Strategy: Execution

Leadership

Diversity

Responsibility

Incentivation

Talent management

Qualification

The best team puts our strategy in action

26

LEADING EUROPEAN TELCO

More…

…collaborate, innovate and empower to perform.

…international mindset.

…clear leadership and ownership.

…raising the bar for overall success.

…international leaders & experts.

…skill development for future business.

Live new leadership culture

Foster international job rotation

Ensure clear end-to-end responsibility

Link our incentive schemes to performance & share price

Push for cross functional, cross segment careers

Invest in training, up-skilling on all levels


27

DEUTSCHE TELEKOM COMPANY PRESENTATIONPRODUCTS & SERVICES



Network, Products & Innovation

Service & BRAND


Integrated IP Networks


28

All-IP transformation

Shift to IP-Platformuntil 2018

INTEGRatedNETwork Strategy

Build out of modern infrastructures: LTE, Fiber/Vectoring etc.

1 LTE rollout

2 Fiber

3 Vectoring

4 Hybrid Access

+

+

+

Pan-europEAN Network

DT Technology leader

European productionmodel on IP-Basis

PANNET

DSLLTEDevice

Hybrid


Network Strategy

INTEGRATED NETWORK STRATEGYInfrastructure

29

Optical Fiber

Vectoring

1 LTE Roll-Out

2 OPTICAL FIBER

3 Vectoring

4 Hybrid Access

+

+ HyBrid Access+

LTE Roll-Out

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

EU: 75 – 95%2 LTE pop-coverage in 2018 with up to 300 Mbps

Germany: Download speed of up to 550Mbps via hybrid in cable footprint

Germany: Introduction of super vectoring with more than 250Mbps in cable footprint

Germany: Glass Fiber household footprint of ≈ 80% in 2018 with at least 50 Mbit/sdepending on regulatory adjustments

EU: ≈50% of households3 with at least 100Mbps in 2018 ≈12% of households3 with up to 500Mbps4 in 2018

1) Outdoor coverage 2) Depending on country 3) In integrated footprint 4) FTTH, FTTB, FTTC, cable/ED3 (cable, esp. in Hungary with Euro-DOCSIS

DSLLTEDevice

Hybrid

Hybrid Router


Network Germany

BEST NETWORK & NETWORK BUILD-OUTIN GERMANY

30

Leader in broadband quality for mobile and fixed network

Innovative products

Biggest bandwidths

Best network coverage

AWARDS

For the fourth time in succession:

Telekom wins the major CHIP network test

Connect network test: top position reinforced

Connect readers' choice 2014: winner of best mobile/best fixed network provider, among others

Example GERMANY


Network Europe

BEST NetworkEuropE

LTE in all markets (AMC 2015)

Testing LTE Advanced

Fibre, Vectoring andHybrid as Network-Booster

Europe first IP-Network in Mazedonia and DT worldwide firstcompany with Terastream

Transformation to pan-europeanIP-network

regional FaCTS

1,1 Mrd. km2

132 Mio. Inhabitants

50 Mio. Households

57 Mio. Mobile – and10 Mio. Fixed line customers

FaCtS EuropE NETWORK COVERAGE

today up to

40% LTE coverage

IP-voice coverage

2018 up to

9 Mio.

Europe wideIP-network

2020 up to

50 %100 Mbit--supply

35

12Countries


Overview: B2C, B2B, Partner

PRODUCTS & SERVICES

Cutting-edge mobile communications and broadband experience

TV

Online services

Cloud products

Information & communication technology (ICT) solutions

Outsourcing & cloud services

Intelligent network solutions for the health care, automotive and energy industries

Partner for infrastructure accessand network services

Platforms & partnershipsfor innovative services

Consumers Business customers Innovation & PARTNER SERVICES

32


Products: B2C

PRODUcts & services consumers

De-Mail

Optical fiber/VDSL

Mobile communications/mobile Internet

IP telephony

LTE

WiFi

Entertainment CommuniCation services

InnovativeSERVICES

CUTTING-EDGE BROADBAND ANDMobilE COMMUNICATIONS EXPERIENCE

ConsumersHybrid router

33


Products: MagentaEINS

Consumers

34

PRODUcts & services consumersEXAMPLE: GERMANY

MagentaONE

SERVICE

LivingEnter-

tainment

MagentaHome

MagentaMobil

Communi-cation

ClOUD


Products: Entertainment

Entertainment (IP)TV aND ENTERTAINMENT-services

35

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

>6 million TV customers

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

(IP) TV ENTERTAINMENT-services

Entertain

Deutsche Telekom footprint

Deutsche Telekom footprintwith (IP)TV service

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

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


Products: Communication Serices

COMMunication ServicesCLOUD, Security, E-mail

36

Photos, videos and music whenever, wherever“from the cloud”

Deutsche Telekom's secure cloud: TÜV certification

E-Mail made in Germany

Secure/legally binding e-mail

"No letter, but signed and sealed"

TELEKOM CLOUD DE-MAIL

TelekomCloud End-to-End Service Data Protection Data Security

De-Mail

Security

Telekom Security Package: Security everywhere – reliable protection against virus etc. mobile and at home

Insurance for mobile devices –damages, theft, etc.

Security in line with theDe-Mail Act

Saves printing and postage costs

LettersRegistered mail

Faxes

https://www.de-mail.t-online.de/

https://www.de-mail.t-online.de/


Products: 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

SMART HOME

37


Products: Payment

PAYMENT

38

The digital wallet

Everything in your wallet on a single device

Cashless, contactless payments

View all transactions and your account balance at any time

High security thanks to near field communication technology (NFC)

Customers can pay at over 1.6 million MasterCard

MyWallet has already come to market in Germany, Poland, Slovakia and other countries in the Telekom footprint

MYWALLET

Information & communication technology (ICT) solutions

DEUTSCHE TELEKOM: PROFIL STRATEGIE & TRANSFORMATION NETz, PRODUKTE & INNOVATION SERVICE & MArke

Produkte: B2B

Dynamic IT ACCESS(Cloud COMPUTING)

ICT EXPERTISE & Cloud Portfolio

PRODUCTS & SERVICES FOR BUSINESS CUSTOMERS AND INTELLIGENT NETWORK SOLUTIONS

Mobile ENTERPRISE(Cloud Services)

AUTOMOTIVE

Health careEnergy

Intelligent network solutions

COLLABORATION

Business customers

39


B2B: Performance

T-Systems – performance

40

As of: Q1/2014

Industry expertise

Manages 70% of the top 100 companies in all industries across Germany

No. 2 in EMEA for manufacturing

No. 1 in Germany in the transport sector

No. 2 in Germany in the utilities sector

No. 3 in Germany in the public sector

IT & TELECOMS EXPERTISE

Integration of IT and telecoms: ICT delivery management, E2E monitoring and E2E SLA, ITIL-certified processes

Customer-specific pricing models,e.g., price per workstation, perLAN port

Dynamic services with flexibleup- and downscaling

No. 1 in the ICT market in Germany

Nr. 2 in the German market for systems integration

PIONEER IN CLOUD COMPUTING

T-Systems has offered solutions viadynamic platforms for over 10 years

More than 36,000 cloud systems operated worldwide

More than 300,000 employees in customer companies communicate via T-Systems‘ Dynamic Services for Collaboration

40


B2B: Zero Distance

Zero Distance presents new challenges for all decision-makers

41

DRIVE INNOVATION

THE SHOP COMESTO THE CUSTOMER

THE CUSTOMER BUILDS THE PRODUCT

THE PRODUCT TALKS, THE

CROWD ACTS

KEEP THE ENGINE RUNNING

BUDGETS AND COSTSCAPABILITIES &

RESOURCESSTABLE OPERATION

FAST ACCESS

INTUITIVE USABILITY

USERS & BUSINESS AREASBUY IT

Customerexpectations

Userexpectations


B2B: Transformation

Zero Distance calls for transformation of ICT

42

COLLABORATION

COLLABORATIVE WORKPLACE STRUCTURES

INTERACTION WITH CUSTOMERS AND PARTNERS

SOCIAL BUSINESS

MOBILE

BYOD

Management of mobile devices & apps

Mobilization of business processes

CLOUD & BIG DATA

BUSINESS INTELLIGENCE

HARMONIZATIONOF IT SYSTEMS

MULTI-CLOUDMANAGEMENT

DATA MANAGEMENT

TRANSFORMATION TOWARD

SECURITY

42


B2B: Cloud

MIGRATING INFRASTRUCTURE to the cloud

43

DatA ANALYSIS ANDUTILIZATION (Big Data)

HIGHLY flexible, RELIABLE INFRASTRUCTURE (Cloud)

FASTER PROVISIONING OF NEW SYSTEMS (Cloud Broker)

DatA PRIVACY & DatA SECURITY

CIO CHALLENGEBUSINESS REQUIREMENT

Data privacy

Compliance

Product liability

Differentiation of services

Ecosystem

Billing

Costs of transformation

Access controlPartners & Tier-1suppliers

LAUNCH NEW PLATFORMS IN DAYS AND MONTHS instead of years!

MANAGE MILLIONS OF END CUSTOMERS instead of 100 retailers!


B2B: Cloud

Dynamic IT access (Cloud Computing)What is truly important

Security FlexibilityReliability Transformation

Data is governed by German data protection regulations

IT infrastructure is protected against attacks

Backed-up networks and secure access line

Fail-safety (24/7 availability)

Access from anywhere 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

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

44


B2B: Cloud

Dynamic IT ACCESS (Cloud Computing)ReferenCeS

Security FlexibilityReliability Transformation

Big hybrid public and private cloud

Cloud business collaboration platform

Transformation towards a high availability cloud

Consolidation of busi-ness-critical IT services

Maximum security and compliance with German data protection regulations

Customer's own security policy

Auditability

Rapid growth requires flexible infrastructure

Multi-stage transformation with a fallback strategy

Worldwide consolidation of IT & processes towards one private cloud

Highest service levels and disaster recovery in order to safeguard business continuity

Combination of services from the public and private cloud based on requirements

Hybrid document management

45


B2B: Collaboration

BUSINESS REQUIREMENT

TRANSFORM Collaboration

46

Collaboration Tools WITH Social Media Features AVAILABLE globalLY (Dynamic Workplace)

Integration oF Social Media inTO CORE APPLICATIONS

DECISION-MAKING AND MANAGEMENT TOOLS THAT SUPPORT REAL-TIME PROCESSES –BEYOND COMPANY BOUNDARIES

How quickly does FEEDBACK from customers reach the development team?

Where do youremployees shareLARGE FILES? DROPBOX?

CIO CHALLENGE

Sharing insteadof sending

Access rights

Data security

Knowledge transfer

Integration of external partners

All-IPEasy to use

HOW QUICKLY does your SUPPLY CHAIN react to changes?


B2B: Collaboration

COLLABORATIONGLOBAL EXAMPLES

Smooth collaboration among Shell teams spread across the globe

Documents easier to locate

Implementation of Shell's document management policies

Scalability and cost efficiency of a hybrid cloud

Scalability and flexibility at a fixed rate per workstation/month

Platform and services always up to date and available

Internal and external collaboration possible – worldwide

Standard platform for >100 online services available for Barmer and GEK sites

Digital processes reduce burden on service employees

More interaction with the customer, more user-friendly

47

CloudReadiness & ManagementSolutions

Unified Com-munication & Collaboration

CloudReadiness & ManagementSolutions

Unified Com-munication & Collaboration

Archiving& Content Management Services

Access& Voice Services

Web, Social & Mobility Enabling Services


B2B: Mobile Enterprise

Mobile ENTERPRISE

Context-BASED Services FOR CUSTOMERS mobile AppliCationS VIA SECURE CONNECTION

MANAGE EXTENSIVE VARIETY OF DeviceS AND OPERATING SYSTEMS

PROTECT DATA EFFECTIVELY, INCLUDING ON 'fun Devices'

Can your employeesREALLY WORK FROM ANY LOCATION?

WHAT SERVICES do you offer your customers on a mobile basis?

CIO CHALLENGEBUSINESS REQUIREMENT

Protect mobile dataLink business apps with back-end

SIM cards BYOD

QR codes

Context-basedservices

48


B2B: Mobile Enterprise

MOBILE ENTERPRISESUCCESS STORIES

Luggage localized anywhere in the world, always arrives at its destination

Administrative costs involved in luggage management are reduced

Centralizedcollection, analysis and provisioning of luggage data

MobileEnterpriseServices

MobileEnterpriseServices

Optimization ofinefficient, costlypublic citizens' offices

Mobile information & communication center

Data processingon site, e.g., usingfinger prints

49


B2B: Intelligent Network Solutions

Intelligent network solutions provideT-Systems customers with new business models

50

THE INTELLIGENT NETWORKING OF DEVICES AND SYSTEMS IS

THE GROWTH DRIVER FOR NEW TECHNOLOGIES

ENERGYServices for the highly complex energy grid of the future

Smart metering and gateway communications services

Solutions for energysector processes

Smart home

Smart grid services

Health careSolutions for connecting doctors, patients, hospitals, health insurance providers and care facilities

Telematics

Telemedicine/telemonitoring

Digital processes

Ambient assisted living (AAL)

Hospital IT

CONNECTED CARIntegration of cars and trucks into the Internet and company processes

Cloud infrastructure and operation of the open Business2Car platform

Telematics services

Connectivity (M2M/broadband)

50


Partners & Platforms

PARTNER SERVICES & PLATFORMS

partner services for infrastructure

BusinessMarketplace

access/voice services/NETWORK SERVICE

Media distribution Connected home Internet and product partnerships

machine-to-machine communication

partner for business customers

Platforms & partnerships for innovative servicesPARTNER SERVICES & PLATFORMS

51

Products for the conventional retail and discount market

M2M & data solutions, new markets

Mobile


Partners & Platforms: Infrastructure

partner services for infrastructure

52

Access: unbundled local loop line, bitstreamaccess; "contingent model"

Network services: transmissionpaths, carrier service networks (customized solutions for carriers) and infrastructureservices

Voice: interconnection forPSTN/NGN, access to added-value services

Fixed network

Network build-out

New products & services

Mobile communications optical fiber connection

Outsourcing services

Support services

Partnerships onbuilding out (FTTH) infrastructure

Partner for infrastructure access and network services

Fixed-network and mobile products for service providers and partners

Network access, lines and data transportation

Voice services

Network and upstream services

Services within the Deutsche Telekom network

Partnerships withinternational telecoms partners


Partners & Platforms: Tolino

PARTNER FOR MEDIa DISTRIBUTIONTOLINO

Partnering with the biggest book dealers in Germany

Biggest collection of reading material on the market with more than 1.2 million titles

In-device storage for up to 2,000 e-books

Open ecosystem

Battery life of up to 7 weeks

25 GB cloud storage free of charge for books

Access to content free via WiFi and 40,000Telekom HotSpots

TOLINO VISION E-READER

53


Partners & Platforms: Qivicon

PLATFORM FOR THE CONNECTED HOME: QIVICON

54

Open and independentplatform for partners

Standardized solutions for flexible,easy integration of partners

Success is evidenced by the more than 20 development, consulting and sales partners on board; number growing steadily

PARTNER PLATFORM FOR THE CONNECTED HOME/HOME AUTOMATION


Partners & Platforms55

PartnerIngInnovation With PartnERS

CloudMusic streaming

SecurityDigital Life-style devices

Mobile Security solutions


Partners & Platforms: M2M

Medria: vital data (cows)Tele health: health data

DRK: connected beds

Limmex: emergency clocks

Health

Rimova: baggage tracking

ista: supply data

Provedo: smoke detector

Locca: mobile locating

Personal

M2M / Machine-TO-Machine

56

M2M solutions from a single source

partner model offers wide spectrum of industry solutions

Daimler: connected car fleet management

Lucom: remote service for car wash automatisation

Transport and Logistics Agricultural

AutomatiC Information EXCHANGE BETWEEN MACHINES/DEVICES(machines, automates, cars, container etc.)

https://www.google.de/url?q=http://www.catia.net/news007.html&sa=U&ei=7MhwU4TiEcuy7Abe7oGABg&ved=0CDYQ9QEwBA&usg=AFQjCNHUOaU_DARWeUrVItiUzG54cy0LSA

https://www.google.de/url?q=http://www.catia.net/news007.html&sa=U&ei=7MhwU4TiEcuy7Abe7oGABg&ved=0CDYQ9QEwBA&usg=AFQjCNHUOaU_DARWeUrVItiUzG54cy0LSA


Partners & Platforms: Cloud

PLATFORM FOR CLOUD SERVICESBUSINESS MARKETPLACE

57

Software

as a cloud service

Security

Infrastructure

Workplace

Collaboration

Platform

PARTNER PLaTFORM for cloud services for small and medium-sized enterprises

Marketplace for business applications

Open partner solution for software providers

BusinessMarketplace


Innovation: Overview

INNOVATION Vital TO OUR SUCCESS

58

Promoting innovation.

Start-up mentality: never simply accept the status quo

Breaking free of the silo mentality.

Culture of openness: share and advance ideas

Seeing mistakes in a positive light.

Tolerance of "failure" and more respect for new ideas

Core networks

Efficient and secure transportation of constantly growing volumes of data

IT infrastructure

Standardized interfaces for in-house and partner products

Network-based offerings

Foster core business with innovative services and differentiated connection quality levels

Platforms

Interfaces between customers and partners with network-based and network-independent products, supported by APIs and marketing

Culture of innovation

Innovation ininfrastructure

Innovation inproducts

Innovation inservice

Service channels

Improve the customer experience and optimally serve customer needs online and in person

Service processes

More efficient, faster, and more flexible processes


Innovation: Overview

START-UP BACKING & shareholdings

DIGITAL BUSINESSUNIT

T-Systems Innovation Center

T-Venture Hubraum incubatorT-Labs

59

FOCUS ON INNOVATIONNEW IDEAS COME FROM IN-HOUSE DEVELOPMENTS & PARTNERS

59

innovation: VITAL TO SUCCESS!

Inflight

Customer Center app

HomeTalk app

Photo Share app

MyPhonebook

HotSpot finder

DeutschlandLANIPTV program manager

EntertainRailne

IN-HOUSE DEVELOPMENTS PARTNERSHIPS & COOPERATION


Innovation: Think Tanks

Development and backing of new ideas in start-ups and spin-offs

Support/challenge/rethink

Group-wide development and management of innovative products, services & business models

Core task areas:innovation management, platform business, product development, device and partner management

Integration of customers/partners directly into the innovation process

Development of new ideas and solution approaches

Access to young, talented individuals through university partnerships

Investment in/venture capital for innovative business ideas

• Key facts 2001-2013:129 investmentsEUR 396 million invested32 "exits"

• Objective: to generate profit and synergies

Backing/active realization of new business models from start-ups

8-week program in cooperation with General Assembly and Betahaus

INNOVATION"THINK TANKs"

60

DIGITAL BUSINESS UNIT

T-Labs Hubraum incubator

T-Systems Inno-vation Center

T-Venture

http://132.72.80.184/AbVWeb/Default.aspx

http://132.72.80.184/AbVWeb/Default.aspx


Innovation: Sucess Stories

INNOVATION: SUCCESS STORIES

61

Advancement of business ideaby Intelligent Apps GmbH

Launched in 2011

Went international in 2012

Revolutionizing the taxi market

2014: successful realization/profitable Exit (sale)

EXAMPLE: mytaxi.net

In-house development

IPTV market launch in 2006

Multi-functional, networked & interactive

Entertain to-go: via tablet, PC & smartphone

EXAMPLE: Entertain


DEUTSCHE TELEKOM COMPANY PRESENTATIONINNOVATION, SERVICE & BRAND



NETWORK, Products & INNOVATION

Service & BRAND

62

Best Customer Service

BEST CUSTOMER SERVICEEXAMPLE: Germany

Awarded regularly:TÜV technical inspection service's "good" seal for customer service

European Business Award: EU accolade awarded for excellence and an innovative and successful business model throughout Europe

Customer service in Web 2.0: "Telekom helps" on Facebook and Twitter feedback platform

83 million customer contacts per year

70 million phone calls per year

13 million letters/faxes/e-mails per year

Daily workload (ø):

25,000 customer lines provisioned

18,000 customer contacts by phone

7,000 on-site installations

19,000 customer line faults cleared

20,000 technical service employees

AWARDS FOR CUSTOMER SERVICE CUSTOMER SERVICE

Technical Service

63


64

OUR BRAND PROFILEWhat is our story?

OUR BRAND PERSONALITYHow do we want to be perceived?

INNOVATIONWe set standards and drivethe networking of society forward.

COMPETENCYFocus on just a few things that we’re really good at. Networks, services, content management and our relationship with our customers are the focus of our work.

SIMPLICITYA basic need of our customers. We make complex things simple so that our customers can concentrate on what matters.

ACCESSIBLEThe T brand is friendly and accessible. We are open for new experiences and open to other people. We express this in a kind and warm approach to them. We regard our customers as equals. We are not overbearing, condescending, arrogant or authoritarian.

RELIABLEWe want to be experienced as a trustworthy partner in order to build a strong relationship with our customers. Our products empower our customers to be part of a group they can rely on.

INSPIRINGThere must be assurance that sharing the moment has an impact. The impact should enrich the lives of the group members. The shared use of products and services must have a positive emotional impact on the group. Experiences shared are twice as good.

AUTHENTICThe language we use is authentic and straightforward. The moments shown are real and can be big or small. Our stories are based on real-life situations that all of us know and can identify with.

SYNERGETICThe T brand is a We & Us brand, not an I & Me brand. It is about experiencing and enjoying life as part of a group.

OUR BRAND POSITIONING LIFE IS FOR SHARING

OUR BRAND POSITIONINGLIFE IS FOR SHARING


Brand Positioning

our brand proposition LIFE IS FOR SHARING

OUR BRAND PROFILEWhat is our story?

Our brand personalityHow do we want to be perceived?

INNOVATION

COMPETENCY

SIMPLICITY

INTERNATIONAL BRAND ACTIVE TV COMMERCIALS

65

OUR BRAND POSITIONINGLIFE IS FOR SHARING

ACCESSIBLE

RELIABLE

Inspiring

Authentic

SYNERGETIC


Brand Positioning

01.06.2015– Strictly confidential, confidential, internal, public –

THANK YOU

deutsche telekom ir deck - june 2015

Investor Relations