Deutsche Telekom (DTE) CMD 2024 Day 1 summary

Strategic vision and future ambitions

• Accelerating growth with a focus on AI, digitalization, and global scale, building on a proven flywheel model and leveraging data to drive value across B2C and B2B segments.

• Service revenue is targeted to grow by ~4% annually, with EBITDA growth of 4%-6% and adjusted EPS growth of >11% through 2027.

• Free cash flow is projected to reach EUR 21 billion by 2027, with ROCE increasing to ~9%.

• Portfolio management remains key, with ongoing value creation through asset optimization, M&A, and recent monetization of towers and increased T-Mobile US stake.

• Sustainability and social responsibility are integral, with net zero ambitions, ≥-55% Scope 1-3 emissions by 2030, and expanded circularity programs for devices.

Operational performance and market positioning

• Achieved strong growth in Europe and the U.S., outpacing competitors and gaining market share in all operating markets.

• Investments of EUR 71 billion since the last CMD have driven leadership in fiber and 5G, resulting in 300 million customers and significant increases in EBITDA and EPS.

• Brand value is now the highest among European telcos, with Magenta recognized as the continent's most valuable brand.

• Customer engagement initiatives like Magenta Moments and Magenta Status have improved NPS, reduced churn, and increased ARPU.

• Digital transformation and global platforms have reduced complaints, increased app penetration, and improved operational efficiency.

Technology, AI, and efficiency

• AI is a core strategic enabler, with >90,000 AI enablements since 2023, 70,000 employees trained, and an AI competence center established.

• AI-driven initiatives are expected to deliver EUR 1 billion in savings and 20%-30% productivity gains in network operations and software development.

• Data-centric organization and global platform synergies are being leveraged to accelerate innovation and reduce costs.

• Fiber rollout targets include 17.5 million homes passed in Germany and 13.5 million in Europe by 2027, with 12-15 million in the U.S. by 2030.

• 5G investments have delivered positive returns, increased market share, and improved ARPU, with #1 coverage in the US, Germany, and EU.