1

IR-Reporting an das Management „Tue Gutes und rede darüber“Praxisbeispiel Deutsche Telekom, S. Eger & M. Göddertz

2

IR REPORTING AN DAS MANAGEMENT ZENTRALE FRAGESTELLUNGEN

1 Wie muss ein gutes Top-Management IR-Reporting aussehen?

2 Welche Informationen braucht das Top-Management zur Beurteilung und Einschätzung der Leistung einer IR-Abteilung?

3

5 Praxisbericht Deutsche Telekom IR-Team

Welche Informationen braucht das Top-Management zum Abschneiden des Unternehmens am Kapitalmarkt?

4 Wie, wann und wem gegenüber sollte dies kommuniziert/präsentiert werden?

3

Darstellung der Aktivitäten des Unternehmensbereiches Investor Relations, wie z.B. Vertriebsplanung, -

steuerung und -leistung, Erfassung der Erwartungen des Marktes an das Unternehmen, Update zu Sonderthemen wie HV, Kapitalmarkttag, etc.

Update an das Managements über die wichtigsten Ereignisse an den Börsen, Erwartungshaltung/Feedback des Kapitalmarktes an das Unternehmen und bedeutende Entwicklungen im Aktionariat

Einbindung des Vorstandes bei geplanten Vertriebsaktivitäten, Detailabstimmungen zur Equity-Story, Besprechung der nächsten Schritte bei Großprojekten

Vorstand

ZIEL DES AUSTAUSCHES MIT DEM VORSTAND ENGE UND REGELMÄßIGE ABSTIMMUNGEN SEHR WICHTIG

11 22

33

4

KERNELEMENTE UNSERES IR REPORTINGS FOKUS AUF 5 THEMENKOMPLEXE

Deutsche Telekom IR SEMI-ANNUAL BOARD REPORTING

Kurs-

und TSR-

Entwicklung über verschiedene Zeiträume

Analyse der Wettbewerberperfor

mance im Vergleich zur eigenen Kursentwicklung unter Berücksichtigung des Marktumfeldes

Darstellung kursrelevanter Ereignisse

Performance

Entwicklung der Analystenempfehlu

gen von der Deutschen Telekom im Vergleich zum Wettbewerb

Entwicklung von marktüblichen Ratios wie z.B. EV/EBITDA, FCF Yield und P/E ratios

Bewertung

Umfangreiche Darstellung der Markterwartungen bezüglich wichtiger Finanzkennzahlen für verschiedene Zeiträume

Abweichungs-

analyse der Markterwartungen vs. interner Planzahlen bzw. erwarteten Ergebnissen

Erwartungen

Größte Zu-

und Abverkäufe im abgelaufenen Quartal

Umfassende Analyse der Veränderungen im Aktionariat

Darstellung der Ergebnisse des aktuellen Targetings (Top Chancen vs. größte Risiken); Länder-Deep-Dives

Investoren

Darstellung der aktuellen Vertriebsaktivitäten (Calls vs. Roadshows vs. Conferences)

Kundenfeedback zu IR Aktivitäten wie z.B. Kapitalmarkttag

Vorstellung von IR Sonderprojekten wie z.B. Bereichsumbau

Aktivitäten

PRAXISBEISPIEL DEUTSCHE TELEKOM

6

STRUCTURE SEMI-ANNUAL BOARD REPORTING ON IR ACTIVITIES AND EFFICIENCY

DT vs. Peers Today and Previous Year DT Valuation vs. Sector

DT Share price performance vs. Peers FY 2012 and YTD Share Price development and influencing factors Jan and Feb 2013

Status

Analyst Recommendations Status

1 Share Price Performance Status

2 Analyst Recommendations Status

Consensus overview Q4, FY12, FY13

Shareholder Structure, Movements and Investment Style Investor Targets and Regions Targeting Activities 2013

Status

3 Q4/12 Communication: Consensus Management Status

4 Investor Targeting Status

IR Activities Status Review Activities 2012 CMD 2012 Review IR 2013 post SHQ

5 IR Activities Status

SHARE PERFORMANCE

8

TSR DEVELOPMENT 02 Jan 2012 –

24 May 2013. THE TELCO SECTOR HAS LAGGED BEHIND THE OVERALL MARKET

Source: Factset.

20

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

02 Jan 12

21 Jan 12

09 Feb 12

28 Feb 12

18 Mar 12

06 Apr 12

25 Apr 12

14 May 12

02 Jun 12

21 Jun 12

10 Jul 12

29 Jul 12

17 Aug 12

05 Sep 12

24 Sep 12

13 Oct 12

01 Nov 12

20 Nov 12

09 Dec 12

28 Dec 12

16 Jan 13

04 Feb 13

23 Feb 13

14 Mar 13

02 Apr 13

21 Apr 13

10 May 13

18.0% DT

67.4% BT

(25.2%) FT

(68.2%) KPN

(18.8%) TI(16.4%) TEF

17.1% VOD

36.7% DAX

23.5% Stoxx 50

4.9% DJ Telcos

24 May 13

9

SHARE PRICE DEVELOPMENT JAN 2013. SHARE PRICES IN THE TELCO SECTOR BROADLY INCREASED IN LINE WITH MARKET

Source: Factset.

Drivers

▲

Investor interest in the European fixed line regulatory environment picked up (discussion around a pan European network)

▲

Strong results from Verizon Wireless

▲

Falling credit spreads and overall short-term positive telco market sentiment

Telco Sector

Press speculation suggests that DT is considering a disposal of Scout24

▼

Worry that the announced T-Mobile US capex increase is not enough to improve coverage and negative read across from Verizon Wireless results (market share gains)

▼

EE signed an MVNO agreement with Phones4U on both 3G and 4G; seen as a negative giving up the 4G USP so early

DT

2.3% DJ Telcos

8.5

9.0

9.5

10.0

10.5

11.0

02 Jan 13

07 Jan 13

13 Jan 13

19 Jan 13

25 Jan 13

31 Jan 13

3.4% DT

4.8% BT

(1.7%) FT

11.0% KPN

4.3% TI

2.0% TEF

9.3% VOD

(0.0%) DAX(0.3%) Stoxx 50

04 JanDT -

Extensive cooperation

concluded with Sky

23 JanRating agency JCR lowers TEF

long-term rating from A outlook

negative to A-

outlook negative

10

SHARE PRICE DEVELOPMENT FEB 2013. NEGATIVE RESULTS ANNOUNCEMENTS IN THE TELCO SECTOR AND INCREASED

M&A

Source: Factset.

Drivers

▲

Liberty Global bid for Virgin Media, Vodafone interest in KDG

▲

Speculation around AT&T interest to acquire European player

▼

Negative KPN results and cap increase

▼

Vodafone results below expectations, indicating tougher pricing environment

Telco Sector

▲

Speculation on EE: PE interest and IPO plans▼

KPN announced additional commercial investments for E-Plus in 2013; VOD aims to increase market share in Germany

▼

Negative reaction to VOD / KDG rumors▼

Concerns around amount of leverage at T-Mobile US / MetroPCS merger (Paulson)

▼

TPSA profit warning raising concerns over Eastern European Telco

assets, with negative read across for DT

DT

(3.9%) DJ Telcos

6.5

7.0

7.5

8.0

8.5

9.0

9.5

01 Feb 13

03 Feb 13

05 Feb 13

07 Feb 13

09 Feb 13

11 Feb 13

13 Feb 13

15 Feb 13

(9.2%) DT

4.0% BT

(9.7%) FT

(21.2%) KPN

(15.7%) TI

(6.9%) TEF

(3.3%) VOD(3.1%) DAX

(3.5%) Stoxx 50

08 FebDT reaffirms

commitment

to US Merger

01 FebBT Q3 2012

resultspublished

07 FebVOD release of interim

management statementfor Q4 12

07 FebTI FY 12

preliminary results08 Feb

Update of TI’s2013-2015 plan approved

05 FebKPN FY 12 results published

and capital increase announcement

15 FebFT –

Agreement to

dispose 20% stake

in Sonaecom

ANALYST RECOMMENDATIONS/ VALUATION

12

ANALYSTS VIEW DEACREASING BUY RECOMMENDATIONS FOR TELCO SECTOR

Source:

Factset. Data as per 24 May 2013.

38.9

%

40.0

%

56.3

%

71.0

%

50.0

% 57.7

%

42.5

%

40.5

%

46.2

%

47.1

%

35.5

% 45.7

%

20.0

%

36.4

%

41.7

%

42.5

%

31.3

% 16.1

%

45.5

%

30.8

%

35.0

%

42.9

% 42.3

%

41.2

%

38.7

%

34.3

%

53.3

%

39.4

%

19.4

%

17.5

%

12.5

%

12.9

% 4.5%

11.5

%

22.5

%

16.7

%

11.5

%

11.8

%

25.8

%

20.0

%

26.7

%

24.2

%

Buy Hold Sell

Today -1 Year Today -1 Year Today -1 Year Today -1 Year Today -1 Year Today -1 Year Today -1 Year

DT VOD BT TEF TI FT KPN

13

MULTIPLE OVERVIEW DT VALUATION ABOVE AVERAGE IN 2013 & 2014

Source:

Company information, Factset. Data as per 24 May, 2013.Note:

AFCF is defined as EBITDA less capex, FCF is defined as AFCF less net interest expense and taxes.Vodafone has been adjusted for the their stake in Verizon Wireless.

4.8x

6.3x

4.9x

4.6x

4.1x

4.0x

3.8x

4.7x

6.2x

4.9x

4.5x

4.1x

4.1x

3.8x

DT BT TEF VOD KPN FT TI

Mean '13: 4.6xMean '14: 4.6x

10.7

x

10.7

x

9.9x

9.5x

9.1x

7.3x

7.0x

9.7x

10.7

x

8.3x

9.3x

9.7x

7.6x

6.8x

DT BT TEF VOD KPN FT TI

Mean '13: 8.9xMean '14: 8.7x

12.2

%

27.1

%

21.6

%

13.2

%

12.6

%

9.3%

8.2%

13.5

% 23

.4%

23.2

%

12.2

%

16.6

%

9.5%

8.0%

DT FT TI KPN TEF BT VOD

Mean '13: 15.3%Mean '14: 15.5%

12.4

x

12.7

x

12.4

x

10.3

x

9.5x

7.3x

5.3x

12.1

x

11.7

x

11.7

x

9.5x

9.5x

7.8x

5.3x

DT BT VOD TEF KPN FT TI

Mean '13: 9.6xMean '14: 9.2x

FCF Yield

EV / EBITDA

2013 2014

P/E

EV / AFCF

Q4 COMMUNICATION / CONSENSUS MANAGEMENT

15

Q4 2012 FY 2012

CONSENSUS DASHBOARD Q4 2012 AND FY 2012 ADJ. EBITDA AND ADJ. NET INCOME BELOW CONSENSUS

INVESTOR TARGETING

17

Q4: X , Y AND Z NEW IN TOP 10 NO. B INVESTOR NO LONGER SHAREHOLDER, TOP TEN CONCENTRATION DOWN BY MORE THAN 3PP

Investor 5 -10.9

Investor 4 -14.3

Investor 3 -17.6

Investor 2 -22.1

Investor 1 -55.0

Investor 10

Investor 9

Investor 8

Investor 7

Investor 6

Investor 5

Investor 4

Investor 3

Investor 2

Investor 1

1.191.191.27

1.41

1.51

1.77

1.88

1.96

2.40

2.56

In % of F/F

8.1

8.7

11.0

14.2

15.4 Investor 1

Top10 hold 17.1% of free float5 largest buyer1 5 largest seller1

in million shares bought in million shares sold

1.4m

∆

Shares1

10.9m

8.1m

2.9m

2.9m

11.0m

7.2m

15.4m

4.2m

2.8m

1within Q4/2012* company-related shareholder (not considered in free float)

3.1%

Investor 2

Investor 3

Investor 4

Investor 5

18

DT SHAREHOLDER STRUCTURE AND STYLE 4PP DROP OF VALUE INVESTORS, INCREASE OF INDEX AND RETAIL

INVESTORS

Share of identified investors: 94.0%

North America dropped by 1.3pp mainly due to B, which cleared its position completely

Concentration of institutional capital dropped -1.1pp

Rising share of Retail investors +1.8pp

UK position up by 2.2pp mainly due to X, Y and Z

France down by 0.9pp; Switzerland decreased 0.4pp

Index investors up by almost 4pp

On the contrary, yield investors down by around 4pp

Trading

17,0

Retail

Bund

KfW

Unidentified

3,5

6,0

18,2

15,0

40,3

CH

19,1

23,7

Rest of Europe

Germany

5,4

15,0

France

USA/Canada

17,1

13,2

6,4

UK

Rest of World

In % of S/OIn % Institutional

As of 31 December 2012 68% of total shares are floated FY Trends

26,7

10,6

2,9

54,0

Others5,8

Value

Growth

Index

Yield

Regional Structure Style

19

Top destination is London with one third of all potential investors and 54% of capital

24% of investors in US, with 17% of total buying power, but US targets

widespread across the country. The highest underweight volume can be found on the West and East Coast.

Minor gaps in Nordic and Spain

Since German is OW in DT again no gaps to close, but retention focus required. The same applies for France and Benelux

2%

3%

5%

8%

2%

Edinburgh

4%

UK Misc

3%

Ilmarinen (Finnland)

1%

Madrid

South

3%

Westcoast

5%

Boston

6% New York

6%D Misc

3%

Frankfurt5%

London31%

1%

Brüssel

1%Oslo

1%Stockholm

Amsterdam/The Haque

Zürich

Paris

Singapore1%

TokyoBejing

1%

Rockies

1%

Midwest

1%

Mid Atlantic

2%

6%

4%

11%

FranceCH

3%Germany

Other

North America

17%

UK54%

5%

Asia

1Covers all targets with a gap to fair share > $50m, excluding passive investors 2Buying Power is defined as the investment of a investor into the

Telco peer group x fair share of DT in that group

Relevant destinations (in % of investors)1 Relevant regions (in % of buying power 2) 1

INVESTOR TARGETING LONDON REMAINS THE PLACE TO GO IN 2013

20

Investor 12-362

Investor 11-353

Investor 10-325

Investor 9-216

Investor 8-209

Investor 7-190

Investor 6-182

Investor 5-164

Investor 4-162

Investor 3-155

Investor 2-132

Investor 1-118

Investor 15-511

Investor 14-505

Investor 13-422

Shareholder Rank1 Shareholder Rank1Turnover2

120

125

126

130

130

135

142

154

154

168

265

273

310

449

Target 15

Target 14

Target 13

Target 12

Target 11

Target 10

Target 9

Target 8

Target 5

Target 7

Target 6

Target 4

Target 3

Target 2

Target 1 984

Triple Fits23%

22%

25%

25%

39%

30%

23%

6%

27%

18%

34%

37%

24%

50%

14%

Q4 Best Fit

-

INVESTOR TARGETING BIGGEST TARGETS AND RETAINERS

24

Double Fits

Gap to fair share

Attract -

Best fits by highest underweight volume (in $mm) Retain -

Best fits by highest overweight volume (in $mm)

115

421

103

-

86

2

65

215

45

-

145

-

-

- 5

4

8

7

12

6

13

16

15

18

26

20

22

31

32

1based on the amount of shares hold (only institutional investors), red

indicates a lower rank than previous quarter, green

a higher rank compared to Q3/20122based on the investors’

turnover for all equity assets hold

21

TRANSLATION INTO IR ACTIVITIES FOR 2013*

Benelux

Citi Annual IMT, Las Vegas

Commerzbank German Invest; NY

LBBW Forum, Stuttgart

Citi Telco Conf, London

Conferences Roadshows

Q1

Group via Nomura

Group via Morgan Stanley

SRI Call Generali -

IR

Group via Newstreet

Highfields -

IR

Q2

JP Morgan TMT, Boston

SocGen Telco, Paris

ML TMT, London

Exane BNP Seminar, Paris

Santander TMT

Eastcoast or FFM& Zurich

London or FFM & LND

Edingburgh & Dublin

London

Germany

Austria & Switzerland

Nordic

Group via Exane

Q3

Commerzbank Sector Conf

DB TMT, London

Credit Suisse, London

GS German Corp, Munich

GS Communacopia, NY

Q2 results

Q2 results

Spain -

IR

Group via JP Morgan

Q4

Sanford Bernstein, London

MS TMT, Barcelona

Paris

Mailand

Spain

London

Investormeetings

*Status as of 01.02.2013

IR ACTIVITIES

23

108 Events- 21 Roadshows

-

25 Conferences

-

62 Investor Meetings

96 Events-

41 Roadshows

-

23 Conferences

-

32 Investor Meetings

Textbox Headline 165 Events

-

22 Roadshows

-

18 Conferences

-

125 Investor Meetings

Steep increase of investor meetings (investor calls) -> increased efficiency and reduced travel expenses

Focus on most important conferences; ‘less is more’

2010 2011 2012

IR ACTIVITY STATISTICS 2010 -

2012 CONSTANT INCREASE OF ACTIVITIES

24

BITTE RUFEN SIE UNS BEI RÜCKFRAGEN AN!

Markus Göddertz, Vice President IRStephan Eger, Senior Vice President IR

Telefon: 0228 181-88160E-Mail: markus.goeddertz@telekom.de

Telefon: 0228 181-88338E-Mail: stephan.eger@telekom.de

VIELEN DANK!