GTS AND DT PRESS CONFERENCE GTS AND DT 1+1>2 Claudia Nemat - - PowerPoint PPT Presentation

GTS AND DT PRESS CONFERENCE

GTS AND DT 1+1>2

Claudia Nemat Board Member Europe & Technology Warsaw, 11.06.2014

DT AMBITION LEADING EUROPEAN TELECOMMUNICATIONS PROVIDER

LEADING TELCO

INTEGRATED IP NETWORKS BEST CUSTOMER EXPERIENCE WIN WITH PARTNERS LEAD IN BUSINESS

THE ROLE OF GTS INTEGRATED NETWORKS & PUSH B2B

INTEGRATED IP NETWORKS LEAD IN BUSINESS

LEADING TELCO

WHY B2B? B2B IS ONE OF OUR BLUE OCEAN TOPICS WE WANT TO CAPTURE THE GROWTH OPPORTUNITY!

Defend core business Fix Operations Basics Service Quality & Customer Care Growth potential B2B & Fixed Mobile Cloud Convergence (FMCC) Develop new services / win with partners Inorganic growth

Q1 2014 2014e Q1 2013 74% mobile/fixed 26% ICT/mobile Data 68% mobile/fixed 32% ICT/mobile Data 67% mobile/fixed 33% ICT/mobile Data

OUR AMBITION LET’S CAPTURE THE B2B GROWTH AND TRANSFORM THE REVENUE MIX!

Revenue Transformation Europe Focus on pockets of growth

PERFECT FIT OF GTS & DT BEST REGIONAL FIT FOR INTEGRATED BUSINESS OFFERS

Most comprehensive network coverage in Central Europe Combined fixed and mobile offers in 10 European countries available More than 12.000 corporate clients in PL and CZ More than 200.000 km fiber networks with Interconnection in Europe, North America or Asia Pacific Larger portfolio of innovative products and services plus a strong ICT competence with 90 data centers worldwide

DT Footprint Combined Footprint GTS Partner Networks

GTS & DT: FIRST PRAGMATIC ACTIONS QUICK WINS AND JOINT APPROACH

Deal board Cross-sell Quick wins

? $ Deal boards established to coordinate acquisition pipelines Simple and effective cross-sell strategy Joint approach of sales teams to customers Optimization of procurement, GTS leases migrated to DT, equipment usage optimization, DSLAM consolidation Joint teams set-up and already working on implementation

GTS & DT: OUTLOOK POTENTIAL IN POLAND & CZECH

Smart offering of T-Mobile products to GTS–only customers

20 000+ 10 000 1 500 1 200

Number of Corporate Clients1

• 1. Approximate, based on local customer segmentation, corporate Customers define as having ~ 800 EUR/month potential revenue in PL or 800 EUR/month actual revenue in

CZ Source: TMP, TMCZ finace & controlling, GTS

New Potential Clients of both GTS and T-Mobile will be served jointly Cross-sell of GTS products to T-Mobile-only Customers, sales provided by joint teams Joint acquisition approach towards new/3rd- party customers

GTS & DT: OUTLOOK FOCUS ON PRODUCTS

IP Communications – reliable & future-proof IP-products Unified Communication and Collaboration with flexible and scalable on demand deployment (seats, bandwidth, lines "on demand"), Hosted PBX (virtual company -communication-system) FMCC – powerful tools for expanding local & regional businesses Virtual Workspace bundles (mobile, fixed, Cloud, IT, Hardware, and maintenance at a monthly fee), Mobile Backup (e.g., 3G backup for DSL line based on hybrid CPE/Router) Enterprise Mobility – providing mobile solutions for businesses across Europe Mobile Device Management (managing access to devices, content and applications on devices – prerequisite for mobilizing the business). Expense Management (centrally managing telco spend across the footprint). WiFi Client (especially outside of Europe e.g. in hotels, airports etc. using WiFi instead of mobile network)

GTS & DEUTSCHE TELEKOM THE EUROPEAN PLAYER FOR REGIONAL & LOCAL BUSINESS

GTS/DT Leading integrated player in central Europe: 10 countries with integrated networks. Focus on European Innovation: Innovation center in Berlin, Budapest, Krakow.

• Best regional fit for integrated business offers:

Potential of more than 20.000 new corporate customers (PL/CZ).

GTS & DT

Thank You!

GTS Central Europe

Deutsche Telekom Press Conference

Warsaw, Poland 11 June 2014

GTS at a Glance

Deutsche Telekom Combined GTS Partner

• A leading alternative network

telecommunications services provider in Central and Eastern Europe (CEE)

• 28 000 satisfied customers
• 1 100 committed employees
• Diverse product offerings to serve wide

range of customer demands

• Simple fixed to cloud services
• Extensive network with fiber and data

centers throughout CEE

• History of solid financial performance
• Revenues of €337m (2013)
• EBITDA of €88m (26%)
• EBITDA less Capex of €44m (13%)

Customers – most important asset who demand solutions not services Access Networks – allows control of both quality of service and costs Regional Footprint – network optimized to operate as one Products – fixed complements mobile and strong ICT potential Operating Model – simple processes designed to enable sales Company Mindset – startup with competitive spirit and fiscal discipline Employees – experienced people who think regionally yet act local

Benefits to Deutsche Telekom

~490 stores ~235 stores ~410 stores ~165 stores

T-Mobile PL network to provide diversity and increased bandwidth to 25% of stores Magyar Telekom network and ethernet services to enable bandwidth upgrades to 30% of stores IBU network to enable high capacity services between regional Prague HQs and global London HQs ICT service for digital archiving of contracts developed in CZ to be deployed in SK

Global Retail Company

Customer Synergy Quick Win

Questions & Answers

Thank You!