Deutsche Telekom Company Presentation

7/29/2019 Deutsche Telekom Company Presentation

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– Streng vertraul ich, Öffentlich –1

DEUTSCHE TELEKOM

COMPANY PRESENTATION



2

OVERVIEW

DEUTSCHE TELEKOM: PROFILE

STRATEGY & TRANSFORMATION

PRODUCTS & SERVICES

INNOVATION, SERVICE & BRAND



3

MY FIRST CHOICE FOR CONNECTED LIFE AND WORK



CUSTOMERS & MARKETS FACTS & FIGURES

4

PROFILE

Telekom in figures 2012

Revenue 58.2 bn €

Adjusted Ebitda18.0 bn €

Free Cash-Flow6.2 bn €

Among the Top100 companies (#89,Fortune500 list)

Employees & responsibility

Employees worldwide:232,000

9,300 trainees andcooperative degree

students in Germany Pioneer of social issues

(promotion of women,data privacy, climateprotection, etc.)

Customers

> 141 m mobile customers

> 32 m fixed-line customers/> 17 m broadband customers

rd. 3 m IPTV customers

About 2 m workstation systemsmarketed

Markets

Presence in 50 countries

Germany, Europe, USA: withown infrastructure

T-Systems:global presence & alliances viapartners

Profile

Products & Services

Strategy & Transformation

Innovation, Service & Brand

Source: DT Geschäftsbericht 2012/TMUS annual report to shareholders 2012



5

MARKET ENVIRONMENT & CHALLENGES

Profile

Products & Services



Defend/improve market position in core markets

Increas efficiency

Develop innovative services &new business models

Expand customer service

Aim: service provider Deutsche Telekom

“My First Choice for ConnectedLife and Work”

Extreme competition & declining prices

Strong influence of regulation & politicalbroadband targets

High investments in modern networks

CHALLENGES DEUTSCHE TELEKOM TRANSFORMATION

INDUSTRY & MARKETS

TRENDS & TECHNOLOGIES Mobile Internet &

built out highspeed networks

Exponential data traff ic growth

Network and IT-security

IP Transformation



6

Profile

Products & Services



Seamlessconnectivity

for the GigabitSociety

More innovation

by cooperation

Secure cloud

solutions

Best-in-class

customerexperience

MY FIRST CHOICE FOR CONNECTED LIFE AND WORK



Best network quality as key for innovative services

Broadband quality leader in mobile and fixed network

Innovative Products

Highest bandwidth

Best coverage

7

GROUP-WIDEINVESTMENTSOver 3 years

INVESTMENTS IN BROADBANDTECHNOLOGY IN GERMANY

Over 3 years6 EUR bn

INVESTMENTS INGERMANY

Over 3 years

12 bn

Integrated network strategy:Best network through moder technology

Built out of LTE (mobile)+

Fiber roll out (fixed-line)

+

Vectoring (fixed-line)

+

Hybrid access

Profile

Products & Services



INVESTMENT FOCUS IN BEST NETWORK TECHNOLOGY

200



8

Profile

Products & Services



Modern mobile andbroadband experience

Television

Online services

Cloud solutions

Information & communicationstechnology solutions (ICT)

Outsourcing & cloud services

Intelligent networks for Health,

Automotive and Energy

Partner for infrastructure access andnetwork services

Platforms & cooperation projects forinnovative services

CONSUMERS BUSINESS CUSTOMERSPARTNER SERVICES &PLATFORMS



TelekomCloud

9

Profile

Products & Services



CONSUMERS

Television

Online Services

Cloud Services

De-mail

Mediencenter

Innovative Services

Modern broadband and mobile experience

Fiber/VDSL

Mobile/Mobile InternetIP-Telephony

LTE WLAN



Automotive

Intelligent network solutions

Energy Health

10

Information & communications technologies solutions (ICT)

Profile

Products & Services



Dynamic IT(Cloud Service)

Collaboration(Cloud Services)

Mobile Company(Cloud Services)

ICT competence &

Cloud Portfolio

TelekomCloud

BUSINESS CUSTOMERS



11

Profile

Products & Services



Infrastructure partner services Platforms & cooperations for innovative services

BusinessMarketplace

Partner for businessapplications

Internet and product-cooperation

Machine-to-machinecommunication

Media distribution Connected Home

PARTNER SERVICES &

PLATFORMS

Access/Voice services/Network service



Examples

12

NEW IDEAS BY DEVELOPING & PARTNERING

Profile

Products & Services



Digital BusinessUnit

T-Labs T-SystemsInnovation Center

T-Venture HUBRAUM

Inflight

Mediencenter

Pageplace

HomeTalkApp

Foto Share App

MyPhonebook

HotSpot-Finder

DeutschlandLAN

IPTV Programm Manager

EntertainRailnet

OWNDEVELOPMENTS

PARTNERSHIPS& CO-OPERATIONS

START-UP PROMOTIONCORPORATE VENTURING



13

EXAMPLE GERMANY

Profile

Products & Services



Frequently awarded:TÜV-Siegel “gut” for customer service

GPRA trust index: DT ranked first in telco market

Modern service formats, e.g. ‘Telekom hilft’

Third time running: DT wins CHIP magazine’s network test Connect network test 2012: top rank confirmed with bigger

margin

Connect voting 2013: DT best network operator, DT bestfixed-line provider

EXCELLENT CUSTOMER SERVICE HIGH-PERFOMANCE NETWORK

Leserwahl 2012



14

LIFE IS FOR SHARING

Profile

Produkte & Services



OUR BRAND PROFILEWhat story do we tell?

OURBRAND PERSONALITY How do we want to be perceived?

INNOVATION

COMPETENCE

SIMPLICITY APPROACHABLE

RELIABLE

INSPIRING

AUTHENTIC

SOCIABLE

INTERNATIONAL BRAND CURRENT SPOTS



– streng vertraulich, vertraulich, intern, öff entlich –

THANK YOU!



17

Profile

Data basis financial figures: DT annual report 2012

mobile customers

2.0 m IPTV customers

12.4 m broadband connections

Leading (V) DSL-provider in Germany

EUR 22.7 bn revenue

EUR 9.2 m EBITDA

employees

91,461 employees(incl. Headquarter/GHS)



18

Joint Venture GBEverything/Everywhere

Direct Holding

Profile

Data basis financial figures: DT Geschäftsbericht 2012/TMUS annual report to shareholders 2012

> 104 m mobile custormersin

Europe & United States

42.5 m mobile customers

T-Mobile USA

1 m IPTV customers

iPhone in all european markets

4.8 m broadband conncetions

62 m mobile customers

Europe:Presence in countries

EUR 14.4 bn revenue

EUR 4.9 bn EBITDA

57,955 employees

USD 6.4 bn EBITDA

USD 24.8 bn revenue

employees



19

- Profile

Data basis financial figures: DT annual report 2012

400 business customers:Multinational companies & Public sector

Pioneer in Cloud Computing

Information and communications technology

solutions in all industries

automotive, finance, transport,trade & public sector

EUR 10.0 bn revenue

EUR 0.7 bn EBITDA52,742 employees



DATENSCHUTZ NACHHALTIGKEIT DIVERSITY/VIELFALT & SPONSORING



DATENSCHUTZ, NACHHALTIGKEIT, DIVERSITY/VIELFALT & SPONSORING

DATA PRIVACY, SUSTAINABILITY, DIVERSITY & SPONSORING

21

Profile

Date privacy Corporate Responsibility Diversity Sponsoring

Leading role in dataprivacy & data security

Data privacy report &internet security

Honeypots as early warningsystem against cyber attacks

Groupwide engagementfor sustainability

Listed in the respected DowJones and other sustainabilityindices

Initiative “Ich kann was”,co-founder of the charta of

diversity

Pionneer in social and diversityissues

Pioneer via the introduction ofa groupwide women’s quota(2010)

Special programmes &initiatives to promote

development duringtraineeships

Modern working models,e.g. e-Mail policy

Winner of the Max Spohr Prizefor exemplary promotion ofdiversity

Support in culture & sports

Popular & professional sportse.g. DFB, Bayern München,Olympic & Paralympic Games,engagement in popular sports“Neue Sporterfahrung”

Culture/examples:

International BeethovenCompetition, Beethovenfest

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

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



22

Customer delight andsimplicity drive ouraction

Respect and integrity

Team together –Team apart

Best place to performand grow

I am T – Count on me

Profile



24


Network security becoming more relevant

Roll-out of networks worldwide

Growth with global trend Cloud

Users worldwide

Mobile internet booming

Source: Symantec Report 2011

Investments worldwide(per Year)

USD182 bnInvestments

in Europe(per year) USD

65 bn

Direct damage caused bycyber crime 2011 (worldwide)

EUR 85.2

bnTotal volume cybercrime incl.countermeasures2011 (global)

EUR

290 bn

Source: OECD 2013

2010 2015

950 m

1.890 million

Source: MorganStanley/Nielsen

Source: IDC, DTAG

currently

2,8 Zettabytesof data volume worldwide

+33%

(per year)

2016

Turnover Worldwide EUR 114 bn



25


Current declining prices due to regulation

illustrative€-ct/min

-62%

since2007

2007 2015

201210

Example:Prices for mobiletermination inGermany

Revenue worldwide in bn USD(fixed line, voice)

Declining revenue

Source: IDC20162011

336274

-4%

(p.a.)



Declining prices for services

Declining revenue & growing data volume

26


Stable regulatory rules until 2020

Stability of wholesale Unbundled

Local Loop prices until 2020 No strict cost regulation for Fiber/NGA,

if non-discrimination is in place andcompetition constraints from cable,LTE or copper exist

NGA comprises also VDSL, FTTC.Commission supportive towards vectoring

Goal: Supporting more investments infiber based NGA Networks

*annoucement EU-commisionner Neelie Kroes as of July 2012

Revenues total market

Broadband data volume

1.8 bnGigabyte

Mobile

Fixed-line & InternetTC (overall)

Consumer prices(overall)

Source: Statistisches Bundesamt 2013

2005 2012

4.4 bnGigabyte

EUR 66 bn

EUR 60 bn

2003 2012

100

+1,7 %CAGR

Impulse through EU telecoms policy shift*

Example broadband data volume/revenues in telecommunications services in Germany

- CAGR

-2,0 %CAGR

-1,5 %

CAGR

Example consumer prices in Germany(annual growth rate in percent)

Source: Dialog Consult/VATM(Oct 2012), DB Research (Nov 2012)



27


Basic supply of broadband for all EU-citizens by 2013

30 Mbit/s for all EU-citizens by 2020

Coeval 100 Mbit/s for min. 50% of all

households until 2020

Mobilise investments in fast and ultra-fastbroadband networks.

Nationwide coverage with1 Mbit/s by 2010

Up to 74% of all households to receiveaccess with min. 50 Mbit/s by 2014

Nationwide min. 50 Mbit/sby 2018

Nationwide broadband supply anddevelopment of next generation networks.

Governmental broadband objectives

Broadband objectives EU

Enabling short term and broad deployment of vectoring

Price stability and price flexibility for NGA Modernization of market regulation and cutting overregulation

Setting open access as basic rule for all operators

Promotion of cooperation and synergies

Allocation of spectrum for mobile broadband

Provision of state aid for rural areas

Political and regulatory demands



28

Traditional tele-communicationsproducts

Mobile internet

Connected Home

Online services

T-Systems

Intelligent networksolutions

Objective: build up new growth areas

Improve cost structureDefend/improve market position

Top1- in 11 countries

Attacker in

AT NL

Market leader DSL


Nr. 4 in

USA

not to scale

Source: own illustration

Com-petition

2010-4%-

points

Ebitda Marginin %, 2010

2009 2015

not to scale

Focus on growth markets

Telecommunications

Traditionaltelecommuni-

cations products

20152011

Information andcommunications technology

20152011

Connected Home

Traditionalinformationtechnology

CloudServices

+ IntelligentNetworks

+18% +18%

Source: DT

Mobile Internet



29

Mobile internet Connected Home

Internet services T-Systems(ICT/Cloud)

Intelligent networksolutions




30

Mobile internet

Conncected Home

Internet Services

T-Systems (incl. Cloud, without IN)

Intelligent networks


Deutsche Telekom growth areasRevenue (EUR bn)

Aim 2015



31

DEVELOPMENT

MY FIRST CHOICE FORCONNECTED LIFE AND WORK


ConnectedHome

T-SystemsInternet services

IntelligentNetwork solutions

Mobile internet

2015

2010

since 2007

200619901950



33

WHAT WE BELIEVE IN

Worldwide data volume continues to increase

Prices in mobile & fixed business continue to decline

How industry evolves

Our networs are our core asset and customers demand even more:fast and high capacity networks@home and on the move

We boost network efficiency by NG networks

and All-IP transformationto remain competitive

We upgrade our networks demand driven byusing a mix of technologies (e.g. LTE, Vectoring, WiFi)

We believe in a profitable

network based business withe.g. strongly increasing mobileinternet revenues2

Why we continue to invest in our networks

Mobile data x18

Fixed data x5

2011

Worldwide exabytes/month1

10

20

30

2012 2013 2014 2015

Price/Volume

MobileFixed

2011 Years

Illustrative

+14 % p.a.

2017

96

2011

1 Source: Cisco VNI Mobile 2012 2 Mobile internet market revenue in EURbn according to iPF for DT footprint.



34

HOW WE WIN

INNOVATE

TRANSFORM

COMPETE

Leading technologies for mobile internet

Grow with smart mobile services (e.g. M2M)

Quality of Service offerings

Flexible and fast IT-factory (e.g. Telekom IT)

Efficient systems and processes (e.g. One ERP, Reporting Factory)

All-IP networks and service platforms

Demand-based, smart network upgrade

“Always best connected”

Seamless access technologies



35

OPPORTUNITIES AND CHALLENGES

More and more use cases for ‘seamless connectivity’

Sharpe increase in mobile data usage and need forbandwidth /high-performance broadband networks

Mobile internet and online services present considerableopportunities for growth

Grow with ‘multi-screen’: Seamless delivery of services across n-screens

Monetization of different service levels (QoS)

Develop profitable FMC value propositions

Optimization of fixed & mobile networks/WiFi for customers’ ease of use

Chances

Continued price-drop putting pressureon margins

Retain and develop market position:New and more competitors and still asymmetricnational/European regulations

Secure profitability: DT’s relatively capital intensivebusiness as a key challenge e.g. high capex investmentneeds for fiber roll-out/LTE

Internal transformation

Enhance flexibility of systemsand processes

Secure convergence of networks

based on all-IP approach Enhance flexibility of IT Factory through radical

standardization

Challenges



36

WHAT WE BELIEVE IN

1 Online Consumer Services is only an exemplary field of innovation; innovation is also vital in the other growth areas.

Global players in IP Services are successful with adedicated partner strategy

Exemplary revenue mix for IP Service players like:

We need innovation to attractand retain our customers by compelling products and services

Via partnering we benefit from theagility and innovation power of start-upand Internet companies

In return we offer reach to ourcustomer base, brand powerand productive environments

Innovation is a vital partof our growth ambition

EUR 2 bn by 2015with Online ConsumerServices1

through owndevelop-

ments

throughpartnering

What we can learn from peers Why we push innovation and cooperation



37

HOW WE WIN

INNOVATE

TRANSFORM

COMPETE

Invest with venture capital and set-up of incubator

Grow portfolio of star t-ups, JV, investments and expand existingpartnerships

CEO-led innovation for speed and impact

Selected Corporate Innovation Priorities for scale and focus ofgo-to-market

Attract partners with access to DT customer base, brand APIs1

Innovative communikation services

Enhance own services (e.g. Joyn) with partner offers

Attractive devices and products

1 Application Programming Interface



38

Innovation is the way to explore new growthopportunities and profit pools

Deutsche Telekom drives innovation by owndevelopments, partnering and ventures

Innovative products and services are a futuredifferentiator in the competitive arena

Further stimulate data usage by innovative and cuttingedge devices and tariff bundles

Strategic partnerships, e.g. with Mastercard on mobilepayment

Opportunities

Key challenge is to earn credibility in the field ofinnovation

Create an environment for inventiveness, promotecreativity and entrepreneurial spirit

Become a preferred partner of top players e.g. forexclusive online content

Offer new enabling services to our partners – to fosterand participate in their growth

Launch prodcuts and services differently – towards fast-paced innovation and go-to-market e.g. Portfolio &Innovation Board

Challenges

OPPORTUNITITES AND CHALLENGES



39

WHAT WE BELIEVE IN

Cloud and dynamic computing are the future of ICT

Cybercrime being a real and economic threat

How industry evolves

We offer innovative cloud solutionsfor everybody: consumer, SMB andenterprises

Our one-stop-shop product portfolio includes customizedoffers for any need: from cloud readiness services oversoftware-as-a-service solutions to consulting etc.

We offer worldwide cloud serviceswith the highest safetystandards (“made in Germany”)

Why we have a real USP in the cloud

EUR 85 bn EUR 290 bn

207

82

20172011

+17 % p.a.

Total volume ofcybercrime2

Direct monetary damagethrough cybercrime2

Cloud EUR bn revs1

1 Source: iPF, TSI related, global market 2 Source: Symantec Report 2011



40

HOW WE WIN

INNOVATE

TRANSFORM

COMPETE

Secure cloud services based on high-performing deliveryplatforms

Intelligente Networks in Energy, Health and Connected Car

Compelling consumer cloud services (e.g. Mediencenter)

Efficient ICT operations and harmonized platforms

Flexible and fast IT

Competitive ICT services for SME and corporate customers(e.g. DLAN)

Differentiate by best-in-class product reliability



41

Develop enterprise cloud revenues from EUR0.4 bn (2012) to

Grow in B2B/IT: Generate new sources of revenue withcloud services and ICT services e.g. BusinessMarketplace

Differentiate with premium and secure B2B cloud services and B2C cloud solutions

Levergae the potential of the DT cloud service portfolio

Leverage ICT cababilities across the group

Grow with Intelligen Networks (energy, health, car): EUR1 bn revenue ambition in 2015

Make the growth story of DT happen

Positioning of DT as a secure cloud player

Convince customers of advantages of DT cloudsolutions

Secure consumer‘s access to services and data,independent from device or network

Shift applications & classical ICT towards Cloud

High competitive intensity in targeted cloud markets

Win attractive strategic partnerships to enhancefootprint, services and industry know-how

OPPORTUNITIES AMD CHALLENGES

Opportunities Challenges



42

--WHAT WE BELIEVE IN

Customer experience does affect the bottom-line

2007-2010 Stock Performanceof Customer Experience Leaders, Laggards and S&P 500[Cumulative Total Return]

“Best-in-class” customer experience is thefinal ambition across all strategic thrusts:

Attracting attention (e.g. ad campaigns)

Helping to find the “right” products and reacting tochanging needs (e.g. preferences)

Strive for high brand recognition (e.g. via values)

Enabling seamless product experience (e.g. across all screens)

Delivering excellent interaction for high customer

satisfaction (e.g. E2E processes)Fostering easy-to-partner (e.g. AGBs)

Source: Watermark Consulting, 2011.

-3

19

-46

CxP Leaders S&P500Index

CxPLaggards

How industry evolves How we understand best-in-class experience



43

--HOW WE WIN

INNOVATE

TRANSFORM

COMPETE

Attractive service portfolio (e.g. modular and flexible bundling)

Grow with premium customer services (e.g. IT-vor-Ort Service,Sofort-Service)

Innovative service channels (e.g. on Facebook, Twitter)

End2end process optimization, cross-NatCo where reasonable

Production cost on benchmark level

Best practice CRM

Consistent user experience across all screens

B2B SLAs & customer service

Maintain or win market shares by excellent customer experience



44

Be the number ‘1’ in every respective market in terms ofbest customer experience with highest customersatisfaction scores among peers

Delight customers with innovative offerings and topcustomer service

Win more customers with new content, accesstechnolgies and fuctionalities across all screens e.g. forEntertain

Push of DT‘s online consumer services – based onstandardized platforms

Integrated customer relationship management to fostercross and up-selling potential

Utilitze trusted T-brand

Understand or anticipate customer‘s needs

Improve customer satisfaction in all respective markets,and therefore maintain market leadership (and/or winmarket shares)

Improve perceived customer experience across all touchpoints e.g. from sales to customer services

Secure superior access experience (always bestconnected)

Enhance quality of product launch and usability, time-to-market of new products and services

Further improce customer service: Costs/capex needsversus targeted service levels

Generate willingness-to-pay for premium products andservices

Opportunities Challenges

--OPPORTUNITIES AND CHALLENGES



45

Seamlessconnectivity for

the GigabitSociety

More innovationby cooperation

Secure cloudsolutions

Best-in-classcustomer

experience

INNOVATE

TRANSFORM

COMPETE

Grow with innovations from own developments,partnering and ventures

Streamline and modernize processes, systems,product portfolio, organizations

Compete more aggressively and maintain or winmarket shares where feasible



46

Seamlessconnectivity for

the GigabitSociety

More innovationby cooperation

Secure cloudsolutions

Best-in-classcustomer

experience

INNOVATE

TRANSFORM

COMPETE

Corporate Innovation Priorities Dynamic Cloud Services

Intelligent Networks SMB Business Marketplace

Further modernization of efficiency, aim EUR 2 bn

All IP Transformation Telekom IT

Network moderniazion USA + Apple partnership

Mobile InternetPush EuropaK1 & Customer Experience Transformation Europa

Integrated network strategy Germany



P d t & S i



48

FIXED LINE & WLAN

Products & Services

Speedphone:first All-IP telephone

HomeTalkApp converts

iPhone into a fixedtelephone

Around 12,000 Hotspots

Extending by co-operationwith Fon to 2.5 m by 2016

Railnet/Flynet:WLAN in high speed trainor airplane

WLAN – mobilefixed line performance

Speedphone &HomeTalk App

fixed lineconnections

Leading (V)DSL-provider in Germany

EXTENDING LATEST FIXED LINE

INFRASTRUCTURE

P d t & S i



49

MOBILE INTERNET

Products & Services

Telekom: only LTE network forthe iPhone 5 in Germany(1800 MHz)

currently: LTE expansion in 100 German cities

86% highspeed UMTS networkcoverage in Germany

Smartphones trend:53% (Group) and64% (Germany) of enddevices sold are

smartphones

Travel & Surf: EU widedata flatrate

Significant increase indata roaming

Roaming Smartphones & tablets

EXTENDING LATEST MOBILE

INFRASTRUCTURE

Products & Services



50

Products & Services

IPTV customers in Germany/Europe,overall in 10 countries

Entertain in Germany:Liga total! & TV in HD quality

Extending Entertain via

Tablet

PC

Mobile

Entertain: IPTV offerin Germany with 140channels/15,000 movies

Entertain via Sat

Entertain Remote App

Entertain

Präsenz Deutsche Telekom

Präsenz Deutsche Telekommit (IP)TV-Angebot

(IP)TV IN DEUTSCHE TELEKOM

MARKETS

Products & Services



51

Products & Services

MyWallet offersmobile payment,

ticketing,couponing via Smartphone

To pay contactless via Near-Field-Communication (NFC)

Mobile Wallet already startedin Polen

2013: Launch in Germany

Unlimited Music streaming, morethan 20 m songs viasmartphone, tablet or PC

Integration of the SpotifyPremium service into Telekomtariffs and as a additional option

Everything with one application:

Chat, share files and phonewith mit live video

Common technical by mobile

network providers Services work across network

provider limits and systemssoftware

MUSIC STREAMING VIASPOTIFY MESSAGING SERVICE JOYN MOBILE PAYMENT

Products & Services



52

t-online.de: most widelyread and largest websitein Germany

Special topic websites:fussball.de, wetter.info...

Load family: contents ondemand

Interactive media:No. 1 digital distribution/online advertising

Virtual online marketplace/download platform

Scout24: leading onlinemarket place for realestate, cars etc.

8 m users

Active in 18 countries

Strato: Europe‘s secondlargest internet storageservice

4 m pages/domains,1.4 m customers

Products & Services

T-ONLINE.DELOAD-FAMILY &INTERACTIVE MEDIA SCOUT 24 STRATO

Products & Services



53

“CLOUD FOR EVERYONE” (CONSUMERS) & DE-MAIL

Products & Services

Photos, videos and music anytime, any place“from the cloud”

Secure cloud fromDeutsche Telekom:TÜV certified

De-Mail: secure/legally binding Mail

“sealed, but no stamp” Safety viaDe-Mail law

TelekomCloud

Ende-zu-Ende Service Datenschutz Datensicherheit

Reduktionvon Druck- undPortokosten!

BriefverkehrEinschreibenFax

De-Mail

TELEKOMCLOUD DE-MAIL

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



Products & Services



55

Products & Services

T-Systems cloud pioneer since 2005:first SAP applications from the cloud

IT/business competence, consulting &implementation

Integrated single source services(end-to-end)

Cloud portfolio: services from the cloud

Global delivery, 90 datacenters worldwide of which

are 22 twin-core data centers Scalable platforms, more

than 50,000 servers

High flexibility in capacities(nearshore/offshore)

Modern cloud infrastructure

ICT COMPETENCE FOR ALL SIZES

OF COMPANIES

2,7 Mio. small and medium-sizedcompanies in Germany

Public sector

19 000 customers

cross-industrycustomers in Germany

11 airports inGermany,

worldwide

400 multinational companies

Top20-suppliers/OEMworldwide

20 largest German healthand general insurancecompanies

Products & Services



T-Systems supports thetransformation with ICT

services

Virtualize consumer goods Social Collaboration New distribution channels New billing

and paymentmethods

Customer‘s expetations

More flexibility and drive Internal social media Customer data

security Strengthen sales

force

User

56

Byod

Management ViaDevices & Apps

Customer Interaction

Mass Collaboration

Social Media Business

Data Management

Business Intelligence

IT Harmonisation

Products & Services

MOBILE ENTERPRISECOLLABORATIONCLOUD

Products & Services



57

“TAILORED” INFORMATION TECHNOLOGY

without cloud:rigig IT sourcing

with cloud:IT based on consumption

Pioneer:Savings via flexible IT (15%)

DHL: Synchronising IT costs with the expanding numberof packing stations

Magna:Dynamic provisioning of SAP applications, cost savings of 50%of the IT budget for the pure SAP operations

Customer examples

Cost saving

Performanceoptimization

Flexibility

DYNAMIC (CONSUMPTION-BASED)

SOURCING

Products & Services



58

Communica-tions solutionsand platforms forcollaboration

Shell: largestshare-pointsolution fromthe cloud

Teamcollaboration

58

Collaborationplatform forAutomotive &Health Sector

Airport FRA:Collaborationplatform forairport, airlinesand logistics

companies

Company-wodecollaboration

Essentialcommunicationsplatform for fanswith user profiles,

chats and digitalclub magazine

SocialCollaboration

Video conferencing

IT platform solutions for collaboration

Customer Interaction Management

Managed Workplace Services

Virtual Desktop Solutions Interactive Web Media &

Business Portal Services

COLLABORATION

OFFERS

Products & Services



59

Sales employeescan set off ordersand offers viasmartphone/iPhone

Sales & Leads

Personal adviserhave morecontact andaccess to all data

Human Resources

MaintainSAP-Data viasmartphoneor tablet

Service workers

Mobile access to all relevantcustomer information

Elektronical, mobile addressabledatabase

immediate access to conditions,revenues, orders and queries

Standardised platform to provideall functionalities including device,

inventory, and catalog managementand online shop

Security concept with data encryptionand device monitoring and servicedesk

Mobilize businessprocesses

Manage costs throughtransparancy

MOBILE COMPANY

SERVICES

Products & Services



60

Services around the high complexenergy network of the future

Smart Grid Services

Smart Meter

Smart Home

Energy Management

Energy Efficiency Services

Integration of the vehicle in the internetand company processes

Connectivity (M2M/Broadband)

Cloud infrastructure and service

Telematic Services

Solutions to connect doctors,patients, hospitals, health insurancesand health care institutions

Telemedicine

Telematic

Digital Processes Self-determined Life

Prevention and Consumer Health

ENERGY AUTOMOTIVE HEALTH



Products & Services



62

Roaming

partners worldwide

1,9 m km Copper cableworldwidet

14,2 PetaByteIP-data volume perday worldwide

Services in theDeutsche Telekom network

Cooperations with inter-national telecommunicationspartners

Fixed-line and mobile products forservices provider and partners

Network access, connections anddata transfer

Voice services

Network and wholesale services

PARTNER FOR INFRASTRUCTURAL ACCESS

AND NETWORK SERVICES

Products & Services



63

Video conferencingMusic streaming

CouponingDigitallifestyle devices

Mobile securitysolutions

Products & Services



64

PAGEPLACE AND TOLINO

More than 120,000 books

More than 1,050magazines

More than 140newspapers

Cooperation with the largest german booksellers

E-reader tolino shine with more than 300,000 titles

Access to content anytime anywhere via Cloud

Free access to

12,000 Hotspots Open platform

E-reader tolino shine

ONLINE KIOSK OF

DEUTSCHEN TELEKOM

Large Range of digital media

Content available any place, any time

Open & independent platform

Easy use for customers and publishing companies

Products & Services



65

BUSINESS MARKETPLACE

Marketplace for business applications

Open partnering solutions for software

Currently: 10,000registered customers

PARTNER PLATFORM FOR CLOUD SERVICES FOR

SMALL AND MEDIUM-SIZED COMPANIES

BusinessMarketplace

Software

as Cloud services

Security

Infrastructure

Workplace

Collaboration

Platform

Products & Services



66

QIVICON

Open and independentplatform for partners

Standardised solutions forflexible, easy involementof partners

PARTNER-PLATTFORM FOR THE

CONNECTED HOME



68

Support the business idea of IntelligentApps GmbH

Launch in 2011 Internationalisation

in 2012

Example mytaxi.net

In-house development

Launch

IPTV 2006 2 m customers 2012

Example Entertain

SUCCESS STORIES

Digital Business Unit T-Labs HUBRAUM

T-SystemsInnovation Center

T-Venture




Increase accesscustomer value

Disruptivecommunicationservices

Enabling DT/3rd party

businesses New markets:

M2M

A leading TV &Video provider

Increase ROI offiber/distribution

A leading openpartnering-platform for SMBs(SaaS)

Cloud-storage formedia content

Inventory andreach for cross-device digitaladvertising: fromonline to mobileand IPTV

A leading

entertainmentprovider: music,games,e-publishing

Leading onlinemarket place forreal estate,automotive etc.

New target groupsvia mobile andsocial media

A leader in mobilepayment solutions

Leverage onlinepayment for POSreach

Core Telcoproducts TV Cloud Services Digital Media Classifieds

FOCUS ON GROWTH MARKETS

69

Payment

Digital Business Unit

Development and steering ofinnovative and competitive

products, services andbusiness models

- Innovation, Service & Brand



70

T-Labs

Support Challenge Disrupt

T-Labs startups and spin-offs

Impactbusiness

Hands onproductization

Look beyondthe horizon

Drive markets& technologies

Find thehidden jokers

Shapeindustries

Develope and support of newideas in startups and spin-offs

- Innovation, Service & Marke

http://132.72.80.184/AbVWeb/Default.aspx



71

Direct integration of customers/partners in the innovation process

for development of new ideas andsolutions

T-Systems Innovation Center

Open Innovation with customers

partners

research institutions

Faster innovation process

Access to young talents throughcooperation with universities

Innovationen live Innovation workshops with

customers and partners

showcases

Development- and operation platforms for innovation

Faster innovation cycles through rapid prototyping

- Innovation, Service & Brand



72

T-Venture

T-Venture, the venture capital arm of Deutsche Telekom, foundedin 1997

T-Venture invests into innovative star t-ups in order to generateprofits and provide synergies to DT. Synergies are being generatedby adding products & services of the respective start-ups to DT‘sportfolio so that DT or by making use of the technologies of thestart-ups in order to gain efficiencyon a DT level

Thematically oriented funds (Products&Services undProcess&Infrastructure)

T-Venture intensively accompanies companies and acts as a long-term partner. The aim of the joint activities is to increase the valueof the company

T-Venture Business Key facts (2001 till 2013)

129

Investments

Total Amount Invested

Exits

Portfolio of 97 companies, 8 new investments and19 Follow-on Investments in Q1 2013

Recent new investments (e.g.): Inuitive, AppNexus, Sharethis

Significant valuation increases and Exits in Q1 2013:Ubiquisys (Trade Sale to Cisco)

Support TIP, Hub:raum and T-Labs

Top Projects/highlights

Investments/venture capitalin innovative business ideas




SUPPORT OF STARTUPS

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HUBRAUM

Support entrepreneuers who have a viable and fundable idea

Focus on developing a sound business model, MVP and investorpitch

8 week program, in cooperation with General Assembly andBetahaus

Accelerator Support founders who have a viable and fundable business

Invest into founder tream and help them to develop their businessideas into high-growth businesses with a sustainable competitiveadvantage

Incubator

4 startups in the hub:raum incubator

Support/active realisationof new business models

by startups



75

70 m

calls per year

customer contacts

per year

letters/faxes/mails per year

Customer service web 2.0:

“Telekom hilft” on Facebook und Twitter

Daily services (ø):

25,000 new connections set up 18,000 set-ups

7,000 local installations

19,000 connectiondisturbances eliminated

Troubleshooter forour customersin all technicalmatters

20,000

technicians

Our network:

km fiber optic cable

400,000 terabytes of datatraffic monthly

12,000 Hotspots

120 bn minutes of voice traffic

2012: Launch feedback platform

CUSTOMER SERVICE TECHNICAL SERVICE



OUR BRAND POSITIONING



LIFE IS FOR SHARING

OUR BRAND PROFILE

What story do we tell? OUR BRAND PERSONALITY How do we want to be perceived?

INNOVATIONWe set standards and drive social networking.

COMPETENCEFocus on a few things we do really well.Networks, services, content management andthe relationship with our customers are at thehear of everything we do.

SIMPLICITY

A basic need of our customers. We makecomplex things simple so our customers canconcentrate on what‘s really essential.

APPROACHABLEOur brand is friendly and accessible. We are open to new things and open to the peoplearound us. We express this in a warm, personable manner. We angage our customers ateye level. We are not commanding, condescending, arrogant or authoritarian.

RELIABLEWe are trustworthy partners for our customers. We cultivate strong relationshops with

them. Our products enable our customers to be part of a group – a group they can rely on.

INSPIRINGWe enrich people‘s lives – moment by moment. Using and sharing our products andservices withing a group benefits all of the group‘s memebers. Shared experiences aretwice as enjoyable. Our brand stands for a zest for inspiring experiences, a hunger toenjoy life to the fullest. This vivaciousness enables us, like our customers, to make themost of life and ist multible of possibilites, spontaneously and (pro)actively.

AUTHENTICOur tone of voice is authentic and straightforward. The moments we show are real, andcan be big or small. The stories we tell are based on real life, situations that everyone canrelate to, and that are familiar to us all.

SOCIABLEOur brand is about "we“ and "us“, not "I“ and "me“. It focuses on enjoying life as part of agroup.

Deutsche Telekom Company Presentation

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Transcript of Deutsche Telekom Company Presentation