DEUTSCHE TELEKOM COMPANY PRESENTATION DISCLAIMER This presentation - - PowerPoint PPT Presentation

DEUTSCHE TELEKOM COMPANY PRESENTATION

DISCLAIMER

2

This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows, and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve

• ur objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor, or

business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings, and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect,

• ur actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our

estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents alternative performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA after leases, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, free cash flow after leases, gross debt, net debt after leases, and net debt. These alternative performance measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.

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

DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW

184 mn

mmobile customers*

210 500

employees worldwide *

€ 80,5 bn

revenues *

OUR KEYFACTS

BRIEF AND SIMPLE:

4

21.0 mn

Broadband customers *

27.5 mn

fixed network- customers *

21.0 mn broadband customers

• Approx. 8.6 mn TV customers

with own infrastructure

alliances via partners

degree students in Germany

protection, data privacy, diversity, etc.)

DEUTSCHE TELEKOM PROFILE

Customers* Markets Telekom in figures* Employees & responsibility*

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GERMANY

46.2 mn mobile customers 13.7 mn broadband lines 3.6 mn IPTV customers incl. satellite € 21.9 bn revenue € 8.7 bn EBITDA AL1 adjusted 60,500 employees 94,100 employees in Germany overall

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EUROPE & UNITED STATES

Direct shareholdings

T-Mobile US: 86.0 mn mobile customers Europe: 46.2 mn mobile customers 6.7 mn broadband lines 4.9 mn IPTV, satellite, cable customers € 12.2 bn revenue € 4.0 bn EBITDA AL1 adjusted 44,600 employees $ 45.2 bn revenue $ 12.5 bn EBITDA AL1 adjusted 47,300 employees

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„New TMUS“*:

140,0 mn mobile customers $ 77,0 bn revenues

T-SYSTEMS

Information technology and telecommunications

services in all industries:

automotive, finance, transport, retail & public sector

Pioneer in cloud computing

Corporate customers, multinational corporations & public sector

€ 6.8 bn revenue € 0.5 bn EBITDA AL1 adjusted 38,100 employees

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Sponsorship Data Privacy Diversity

WE TAKE RESPONSIBILITY

Leading role in societal and diversity-related issues

women’s quota

education & training

Leading role in data privacy & data security

Security on the Internet report

system against cyber attacks Commitment to culture & sport

football association (DFB), Bayern Munich, Olympic & Paralympic Games, “New sports experience” project in recreational sports

International Beethoven Competition, Beethovenfest

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Sustainable products and innovations E.g., environmentally friendly and accessible products, efficient data centers, eHealth Social engagement & stakeholder mgmt. E.g., promote employees’ social commitments, support education and competence in media Sustainable supply chain E.g., binding requirements for the supply chain, inspections and audits Integrated financial and CR reporting E.g., mandatory CR KPIs for the entire Group in the annual and CR reports, sustainability indexes Environmental and climate protection E.g., CO2 reduction, efficient use of resources, sustainable mobility

WE TAKE RESPONSIBILITY CORPORATE RESPONSIBILITY

Sustainability & Social Engagement Groundbreaking Projects

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100% energy from renewable resources until 2021, emission reduction by 90% until 2030

• fferings for competent media usage

for target groups age 9–99

sustainability as a key criterion

all wireless phones tagged with environment label “Stop wasting – start caring!”, systematic reduction of paper, plastic and electronic waste

RobecoSAM, oekom, CDP and Sustainalytics etc.

HOW WE SEE OURSELVES

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It is in our nature to seek the company of others: humans need this interaction in order to move forward. Sharing fosters closeness. It is the very reason we choose to share our important moments with those important to us. We share events, experiences, and opinions – sometimes even our

• possessions. We share knowledge and our ideas. And quite often, by

sharing these thoughts, we turn them into something bigger, something

• better. That is what drives us.

We, Deutsche Telekom, are more than just another company, which provides society with infrastructure. Whatever the circumstances, we are a trusted companion in both people’s private and work lives. Whenever.

• Wherever. Forever making life easier for people and enriching it is our

mission. Our network is an artery pumping life: fast, reliable, and secure. It provides easy access to all who need it. We are close to the consumer and are transparent, fair, and open to dialogue. We identify innovative products at an early stage and develop them in collaboration with

• ur partners. We do all of this better than anyone else.

This ability forms the basis of trust – an essential ingredient for long-lasting relationships. Precisely this is the essence of our work at Deutsche

• Telekom. Together, with passion, focus and sustainability,

we are entering a world of infinite possibilities for each and every one of us. It is our contribution to social togetherness. This connects us.

OUR GUIDING PRINCIPLES

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DELIGHT OUR CUSTOMERS GET THINGS DONE I AM T – COUNT ON ME TEAM TOGETHER – TEAM APART ACT WITH RESPECT & INTEGRITY STAY CURIOUS & GROW

WE ARE RESPONSIVE BOARD MEMBERS DEUTSCHE TELEKOM AG

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@claudianemat linkedin.com/in/claudianemat linkedin.com/in/christianillek @dwossner linkedin.com/in/dirkwoessner linkedin.com/in/srini-gopalan-061882 linkedin.com/in/thorstenlangheim @adel_al_saleh linkedin.com/in/adel-al-saleh

Adel Al-Saleh

@bibohle

Birgit Bohle

@tim_hoettges linkedin.com/in/timhöttges

Timotheus Höttges

Srini Gopalan

Christian P. Illek

Thorsten Langheim

Claudia Nemat

• Dr. Dirk Wössner

linkedin.com/in/birgit-bohle

DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW

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

OUR AMBITION: LEADING EUROPEAN TELCO

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LEAD IN CUSTOMER EXPERIENCE LEAD IN BIZ PRODUCTIVITY LEAD IN TECHNOLOGY

SIMPLIFY, DIGITALIZE, ACCELERATE & ACT RESPONSIBLY

LEAD IN BUSINESS PRODUCTIVITY LEAD IN TECHNOLOGY

GROW ONE CONNECTIVITY & PERFECT SERVICE INTEGRATED GIGABIT NETWORKS SECURE ICT SOLUTIONS & BIG IOT SAVE FOR GROWTH INVESTMENTS

LEAD IN CUSTOMER EXPERIENCE

OUR FMC+ STRATEGY: DIFFERENTIATE BEYOND SPEED …

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 Focus on our core business: seamless, integrated connectivity (FMC)

and connected services

 More value for our customers by bundling connectivity and additional

services

 Selected partnerships to always provide our customers the best

possible services

 Continuous product and service innovation

“The broadband that can do more!”

2017 2021e

≈ 30% 18%

2021e 2017

26% > 50%

FMC HH penetration3 (in %)

The “Plus” in FMC+ makes a difference Capital Markets Day 2018: Ambitions

… AND STRIVE FOR LEADERSHIP IN CUSTOMER EXPERIENCE

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 Best customer experience & fair treatment of our customers  Improved single contact resolution rate1 with multifunctional service

teams (“team of experts” approach)

 Use data to gain better understanding of our customer needs

(e.g. proactive discovery and handling of problems predictive maintenance) while 100% protecting customer privacy and security

• f their data

> 80%

2021e 2017

66% 4%

2021e

≈ 1%

2017

Contact resolution within 24h2 Rate of complaints

Loyalty needs a great and emotionalized customer experience Capital Markets Day 2018: Ambitions

“Moments of truth” along the customer journey

• 4
• 2

2 4 6 8 10 12 14 16 18 20 22 24 26 28

LEADING IN TECHNOLOGY WITH INTEGRATED GIGABIT NETWORKS

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 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

 Expand our 5G leadership position in the US, leveraging synergies

after merger (e.g. enhanced spectrum, cell sites)

 In parallel, we transform our core using innovative technologies,

such as NFV2, for more efficiency and further improvement of our services

2021e 2017

+2 mn p.a. 17% 30%

2017 2021e

36 27

2017 2021e

Smart network rollout to fit investment goals

New use cases stationary and on the move drive demand for bandwidth and lower latency Data analytics based site planning Co-operation with competitors in white spots & rural areas

Fiber rollout (HHs) Fiber coverage (% of HHs)3 Mobile: macro cell sites (K)

Our ambition is best fixed & mobile network Capital Markets Day 2018: Ambitions

STRENGTHEN COMPETITIVENESS & DIGITALIZATION IN B2B

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 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

• ffering

 Large national access network & sales force and strong reputation as

ICT provider (8x isg/Experton benchmark leader)

6.5

2017 2021e

6.0 3.2

2021e

3.6

2017

TC BUSINESS

LONG-TERM COMPETITIVENESS

SECURITY & IOT

ENTREPRENEURIAL FREEDOM

IT BUSINESS

FOCUSED TRANSFORMATION

DT as a trusted partner with strong B2B brand and customer base, and a strong portfolio

B2B revenues (€ bn) B2B revenues (€ bn)

Ambition: “Partner of choice in digitization” Capital Markets Day 2018: Ambitions

DRIVE EFFICIENCY…

20 Indirect cost DT ex US (€ bn) 2021e 17.0 0.2 0.1 0.4 0.8 18.5 2017

 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”

Our efficiency levers are based on two pillars

Key efficiency levers for DT Capital Markets Day 2018: Ambitions Digitalization

Increase organizational efficiency by automation of manual processes

Economies of Skills

Increase productivity by focusing on skills and successful products

…TO FUND INVESTMENTS FOR FUTURE GROWTH

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DT’s innovation vehicles and focus areas

Major investment areas

Our innovation guidelines

Campus Networks) via central funding

priorities with a wide range of innovation vehicles

Spin Offs

Partnerships

TIP 2.0

CIF

T-LABS

Network and infrastructure

2019

Innovation budget

Investment allocation2

We save money to invest into the future Innovation target

THINK DIGITAL – ACT SIMPLE WITH AN AGILE MINDSET

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 Marketing & Sales: Push online channels & personalized offerings  Customer Service: Drive customer self-service (app, chat) and 360°

customer view

 Network & IT: Increase investment efficiency; shorter time-to-market in IT  Steering & Support: Push employee self-service and automate

repetitive tasks (e.g. planning/ forecasting)

 Organization: “New work” and agile collaboration, incl. upskilling of

employees

20%

2017

> 50%

2021e

Vision: simple, automated “one click” experience

Enhance digital touchpoints & ensure 100% digital customer journeys Data-empowered intelligence for 100% data-driven decision making Simple, transparent products, one-click processes

2021e

6 months

2017

18 months

One App Penetration IT - average delivery time

What does it take to make it work? Capital Markets Day 2018: Ambitions

ACT RESPONSIBLY BOTH SOCIALLY & ENVIRONMENTALLY

23 2017 2030e

• 90%

2017 2021e

 Enable digital participation for customers and our society by fostering

digital competencies & responsibility as well as ethics

 Strengthen employee engagement & willingness to change  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”

“Act responsible” means …

and responsibility in

• ur society

and willingness to change and to protect other resources

... TO DEVELOP DIGITAL COMPETENCES ... TO STRENGHTEN EMPLOYEE ENGAGEMENT ... TO ACHIEVE DT’S CLIMATE TARGETS Reduction of CO2 emissions2 (carbon-neutral until 2050) Renewable energy consumption

Keep adapting to consumer trends & social challenges Ambitions

DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW

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

OUR BEST NETWORK

MULTI AWARD-WINNER:

25

5G

Fibre

30 000

mobile sites (GER)

OUR BEST NETWORK AT A GLANCE (GERMANY) FACTS, FIGURES, DATA

OVER 550,000 KM

OF FIBER-OPTIC CABLES

1.7 MILLION LINES WITH FTTH

IN GERMANY1

UP TO 300 MBIT/s

MOBILE SURFING USING LTE

• APPROX. €70,000/KM

FIBER OPTIC COSTS

UP TO 250 MBIT/s

FOR 23.4 MILLION HOUSEHOLDS1

98.2% LTE NETWORK COVERAGE

MOBILE BROADBAND SPREAD OVER 87% AREA COVERAGE1

17,000 NEW STREET CABINETS

ALMOST EVERY 30MINS A NEW STREET CABINET FOR HIGHSPEED INTERNET2

5G COVERAGE: 99% OF THE POPULATION

BY 2025 AND 90% AREA COVERAGE

30,000 SITES

TARGET FOR 2024: UP TO 10,000 NEW SITES

Fixed network Mobile network UP TO 100 MBIT/s

FOR 32.5 MILLION HOUSEHOLDS1

99.8% 2G VOICE COVERAGE

MOBILE VOICE TELEPHONY 26

OUR BEST NETWORK AT A GLANCE PRIZES AND AWARDS

Best network coverage, bandwidth, and stability. Both fixed and mobile.

Multi award-winner.

the major mobile network tests of magazines connect and CHIP

Deutsche Telekom the best in-car network

mobile network quality, based on the QvK standard.1

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WE OFFER THE BEST NETWORK COVERAGE, BANDWIDTH, AND STABILITY. BOTH FIXED AND MOBILE.

Our hybrid connection combines the strengths of the fixed network and the LTE mobile network: maximum performance at an increased data load. Our LTE network reaches 98.1% of the population in

• Germany. We deliver top

speeds with the most cutting- edge mobile network and largest fiber optic network in

• Germany. In total, we have

laid over 550,000 km of fiber

• ptic cables.

With our vectoring rollout, we are optimizing the capacity and speed of our existing

• network. With Supervectoring

we increase performance up to 250 Mbit, 22 million households have access to supervectoring.. Der Ausbau breitbandiger Netze umfasst den Großteil des Investitionsvolumens des Konzerns im Inland von derzeit mehr als 5 Mrd. € pro Jahr. We are a major driving force in the development and rollout of 5G.

Network coverage Hybrid Vectoring Investments 5G

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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.

Complexity is spiraling – it’s not all just about bandwidth any more. Fiber optics, vectoring, LTE, and hybrid is the sought-after technology mix to meet the need for widespread network coverage. The number of broadband lines is continuing to rise. New applications need faster connections and a bigger volume of data. Virtual and augmented reality are creating new user experiences; self-driving vehicles are just one

• example. As VR applications

require five times the bandwidth of HDTV, the burden on networks will continue to grow significantly. The demand for broadband is booming due to the continual growth of networked devices and

• wearables. Permanent

internet connectivity is posing whole new challenges for global networks. Low latency will be essential for tomorrow’s network, for example for self-driving cars

• r gaming. Round trip delay

must be minimized in the mobile network to enable “real-time communication,” for example through 5G.

Bandwidth Network coverage User experience Devices Latency

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CONSUMERS

PRODUCTS FOR OUR

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Magenta EINS

Magenta SmartHome

Magenta TV

WE HAVE THE BEST OFFERS PRODUCTS AND SERVICES FOR CONSUMERS

MagentaEINS Magenta SmartHome

We are always working on ways to improve MagentaEINS. The control hub for the smart home. Connect smart devices from different brands at the touch of a button and control them with an app.

MagentaTV

It offers something for everyone: TV, series, movies, shows, and documentaries on Megathek, MagentaSport, plus access to streaming services.

We offer products and services that are innovative, safe, and simple too.

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MAGENTA EINS – A ONE-STOP SHOP CALL, SURF, WATCH TV, STREAM.

Numerous benefits always included. All from Deutsche Telekom.

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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

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

MAGENTA TV ONE FOR ALL

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

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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.

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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.

BUSINESS CUSTOMERS

SERVICES FOR OUR

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Digital

Cloud & Infrastructure

Connectivity

Security

We bring the best technology and industry expertise to accelerate our clients success

We enable 163 m passengers p. a. to find their gate at the airport Our Automotive SOC1 keeps an eye on vehicles and fends off potential cyberattacks We gather data, calculate and bill road tolls for 140,000 vehicles every day We help increase life expectancy through connected healthcare We save time and reduce emissions in 100 cities with our mobile parking app

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Holistic approach

Four building blocks as basis for every digital transformation. Our brand promise: Let’s power higher performance

Quality matters

Our quality program ensures the uninterrupted availability

• f systems and infrastructure

Security is our DNA

Excellence in the protection

• f data and technical

infrastructure, acquired

• ver decades

Focused on outcomes

Unique combination of vendor- independent and fully-integrated End-to-End eco-systems enables compliant and successful

• utcomes

Dedicated to client’s success

We are proud to work in close collaboration with the world’s leading companies – with many

• rganizations a partnership that spans
• ver 25 years

Unbeatable skills & passion

The only provider with both comprehensive IT and connectivity competence with industry process expertise

WE ARE ONE OF THE WORLD’S LEADING PROVIDERS OF DIGITAL SERVICES

37

Connectivity Digital Cloud & Infrastructure Security

Four building blocks to create value for every digital transformation – integrated by the unique T-Systems approach

38

DIGITIZATION NEEDS A HOLISTIC APPROACH

Connectivity

We run one of the largest global networks world-wide with over 210,000 sites Freemove Alliance for harmonized international mobile tariffs based on broadest LTE coverage in Europe Leading End-to-End SD Portfolio with secure and controlled migration path Innovative Campus Networks based on 5G

Laying the basis for successful digitization, we apply highest quality standards and

• perational excellence offering

fast, agile and secure access to data and applications worldwide.

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Digital

4,800 employees worldwide focused

• n digital solutions

Over 5,000 digital solution projects annually Over 1,000 successful SAP projects yearly 7M users use our SAP systems

Building tomorrow needs a trusted and skilled digital services provider that can integrate cloud, IoT, security and networks with an agile End-to-End approach.

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Cloud & Infrastructure

10,500 transformation and integration experts in 17 countries 65,000 live cloud systems for > 600 enterprise customers worldwide 33 Data Center buildings - thereof 16 Twin Core Data Centers Largest SAP Hosting Provider worldwide: More than 900 TB HANA databases for our clients

Harness the potential of cloud for your business: use the experience of a multi-cloud

• rchestration provider and a

cloud pioneer with more than 10 years of experience.

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Security

One of the largest threat intelligence databases 1,500 cyber security professionals Security deeply embedded into network connectivity Over 20 years of expertise in cyber security

With Europe’s largest integrated Cyber Defense and Security Operation Center we create the Cyber Security Protection Shield for you. We offer the same high professional standard “Made in Germany” with which we protect

• urselves.

42

GLOBALLY CONNECTED WITH STRONG PARTNERS

By collaborating with specialists in joint development projects, technology and sales alliances, we are expanding our target markets and creating genuine benefits for our clients. Our partners are committed to the zero-outage principle and comply with shared quality management standards.

More than 2,000 best-of-breed technology partners, investments in > 100 start-ups

43

Connectivity Digital Cloud & Infrastructure Security

RENOWNED ICT ANALYSTS AND CONSULTING FIRMS CONFIRM OUR LEADING ROLE IN 2019

Leader Cyber Security Solutions & Services, Security Services, Large Accounts

Leader DT – Business & Network Services

Leader SD-Network Solutions & Services, Germany, UK,

Digital Business Transformation

Digital Workplace

• f the Future

Leader Digital Business

IoT – Transformational Services, Technology

Social Business Collaboration

Leader Private/Hybrid Cloud Data Center Services & Solutions

SAP HANA & Leonardo Ecosystem Partners

Cloud Transformation/ Operation Services & XaaS

Leader DCO and Hybrid Infra- structure Managed Services

Managed Public Cloud Services

Salesforce Ecosystem

Leader Managed IoT Connectivity Services

Success Global Data Product Assessment - Magenta Security 2018 (JAN 19) Award Frost Radar: 2019 Growth, Innovation & Leadership Award European Managed Security Services Market

Leader RADar IoT AR Platforms Europe

Leader DT/TSY Global Industrial IoT Services (APR 2019)

Leader Leading Providers of SAP Services

44

INNOVATION AT DEUTSCHE TELEKOM

OPEN TO THE NEW

Agility Focus

45

Collaboration

SPEED & FLEXIBILITY THROUGH FINANCIAL STAKES WORKING TOGETHER ACROSS DIVISIONS

INNOVATION AT DEUTSCHE TELEKOM

46 LEAD IN TECHNOLOGY LEAD IN BUSINESS PRODUCTIVITY LEAD IN CUSTOMER EXPERIENCE SIMPLIFY, DIGITIZE, ACCELERATE, ACT RESPONSIBLY

Long-term Innovation priorities backing our strategy Collaboration Agility

5G

Time to Market

Short term Long term

hub:raum T-Labs Group Partnering & Devices

Promoting innovation worldwide Increase in revenue and differentiation through complete integration into Deutsche Telekom’s product and development processes

... IN COOPERATION WITH PARTNERS WORLDWIDE

Innovation transfer from the world of start-ups Early development of new business ideas. Continuous ‘scouting’, start-up programs, strategic investments Research from the world´s best universities Developing feasible ideas -T-Labs identifies relevant approaches from the academic world

47

EXAMPLES INNOVATION TOPICS CONTRIBUTING TO STRATEGIC PILLARS

48 LEAD IN TECHNOLOGY LEAD IN BUSINESS PRODUCTIVITY LEAD IN CUSTOMER EXPERIENCE SIMPLIFY, DIGITIZE, ACCELERATE, ACT RESPONSIBLY

Smart Home Edge Cloud Campus Networks Voicification

Exclusive networks increase performance

Dedicated cellular connectivity, edge computing and integrated digital applications empower enterprises’ production automation, flexibility and resilience.

Voicification to increase convenience

Smart voice control to further enhance the way our customers experience our services, and to simplify interaction with technology and devices

Cloud closer to devices & customers

Edge cloud brings data processing to the edge of the network, closer to devices and customers, and enables low latency use cases such as augmented reality or connected driving

Best Smart Home experience1

Magenta Smart Home as integrated part

• f router & broadband proposition, ready

to reach mass market scale

DEUTSCHE TELEKOM COMPANY PRESENTATION OVERVIEW

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

OUR SERVICE

AWARD WINNER

50

> 7 million

lines provisioned / year

Digital service

„Telekom hilft“, MagentaApp, VoiceID, …

approx.

100 million

customer contacts/ year

BEST CUSTOMER SERVICE EXAMPLE: GERMANY

TÜV’s “good” seal of approval for customer service

and an innovative and successful business model throughout Europe

AWARDS FOR OUTSTANDING CUSTOMER SERVICE

• 45 million phone calls per year
• 9,5 million letters/faxes/emails per year

“Telekom hilft” [Telekom helps] on Facebook and Twitter feedback platform

MagentaService app and DSL Hilfe app

Customer service Workload field service

51

OUR OBJECTIVE IS TO OFFER THE BEST CUSTOMER SERVICE

OUR CUSTOMER SERVICE IS AVAILABLE EVERYWHERE IN MANY DIFFERENT FORMS

• We are the source of inspiration for digital

solutions and bring Telekom to life towards customers

• We are the personal companion and feel

responsible for all needs of our customers

• We are quality leader in sales – either private
• r business customers
• We are not satisfied before our customers are

happy

• 30,000 people1 ensure the best customer

experience with approx. 100 million instances of customer contact annually

• We advise, sell, install, and troubleshoot
• We support our customers on the phone and
• n site – with an expert, personal touch
• We develop and distribute customized ICT

services from a single source

• We are the first service provider in Germany

to have a website that looks the same on desktops, tablets, and smartphones

• Omni-channel services offer seamless

customer service contact

• Europe’s largest customer service community

with “Kunden helfen Kunden” [Customers Help Customers] and Telekom hilft [Telekom helps].

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

Reliable service partner for consumers and business customers Telekom Shop Showcase for our customers Online channels Our digital service

52

OUR RANGE OF CUSTOMER SERVICE OPTIONS LEADING IN THE SECTOR

• As a communications provider, we offer the best overall tracking across all

sectors and keep our customers satisfied through digital contact channels such as Facebook, Twitter, video chats, or online communities

• We are the only provider to be strongly positioned across all digital

channels and touchpoints compared with direct competitors

• Our “Telekom hilft” customer service brand is considered the most

appealing

Dialog and service quality across digital contact channels

• MeinMagenta app is the most comprehensive service app from any

telecommunications provider and offers the most extensive range of functions for mobile and fixed line customers

• MeinMagenta app was awarded two consecutive years (2018/19)

best telco app in Germany by magazine Connect

• MeinMagenta app offers wide service range, e.g. check data usage and

costs, view bills, review rates and contracts, online help, personal offers or router installation

• AskMagenta is an AI-based chatbot - fully app integrated it supports

customers in (almost) all service dimensions, clears requests or intelligently forwards to (human) colleagues (live chat & call back)

MeinMagenta app

53

OUR RANGE OF CUSTOMER SERVICE OPTIONS NEW SERVICES FOR OUR CUSTOMERS

54

• We tell the customer

when the service technician will be on site

• The customer can

postpone appointments using the online service

• Live service technician

status

• The online service
• ffers a direct channel

for customer feedback

• Our digital service

assistants answer customer queries quickly, simply, and around the clock

• Our Deutsche Telekom

customers don’t have to wait on the line; we call them back

• Customers can be put

through to the same consultant again

• Our customers can

use their own voice to prove their identity on the hotline

• The process is secure

and extremely simple

• Customers no longer

have to remember their customer number

My Telekom technician Chatbots Callback service Voice ID

• Quick, easy and

intuitive channel to get in contact to Telekom via WhatsApp

• Customers place

requests no matter where they are. The customers don’t have to adjust to DT, we follow customer preferences

• Questions anytime via

preferred channels

WhatsApp MediaTransfer

• MediaTransfer is a

simple digital entry channel for solving customer requests in first contact

• Customer can send

documents, photos and signatures directly via link during call – easy without additional codes

• r entry login-ins

LIFE IS FOR SHARING

OUR BRAND POSITIONING

We enhance people’s lives by enabling them to participate in communities and share special moments – everywhere in the world.

55

BRAND PROMISE What is our mission? We connect everyone to the

• pportunities of now.

BRAND CORE Implicit customer benefit Participation Enriching life Joint experiences BRAND ASPIRATION How do we bring our promise to life?

We help society to bridge the digital divide We take a stance in societal issues that enable people to make the most of digital technology, so that nobody is left behind. We build a recognized digital company where people like to work We reshape the workspace, pioneer new working models and digital competencies, so that our business transforms from inside out. We transform businesses and public sector We use our digital expertise, so that businesses can thrive and public institutions can provide a better quality of life to citizens. We make everyday life smarter We provide digital products and services, so that life becomes easier and more enjoyable. We liberate the internet We deliver a superior network experience, so that everyone is connected seamlessly, any time and anywhere.

BRAND POSITIONING

56

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

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OUR BRAND VALUE

+ 420%

2008 // 8.9 bn. US $ 2019 // 46.3 bn. US $

Continuous Brand Value increase since relaunch Brand Value Ranking 2019

by Brand Finance PLC, London

#1

MOST VALUABLE

EUROPEAN

TELCO BRAND

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THANK YOU