DGAP-Adhoc: Deutsche Telekom AG: Deutsche Telekom steps up investment in growth in 2014 and adjusts dividend planning to 50 euro cents.

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| Source: EQS Group AG
Deutsche Telekom AG  / Key word(s): Results Forecast/Dividend

06.12.2012 17:37

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Bonn, December 6, 2012

Deutsche Telekom steps up investment in growth in 2014 and adjusts dividend
planning to 50 euro cents.

The Board of Management of Deutsche Telekom today approved the financial
planning for the Group for the years 2013 through 2015. The relevant
committees of the Supervisory Board, the General and Finance Committees,
then addressed the plans and formulated a recommendation for the
Supervisory Board to approve them at its next meeting.

The plans are for the Group to increase its capital expenditure
considerably over the next three years (including expenditure following the
closing of the business combination of MetroPCS with T-Mobile USA, which is
expected in the first half of 2013). Capital expenditure (excluding
spectrum investment) of EUR 9.8 billion is scheduled for 2013 compared with
an expected total of EUR 8.3 billion in the current year. The increased
level of capital expenditure is intended to generate year-on-year growth
both in revenue and adjusted EBITDA as soon as 2014. To create a basis for
comparison, MetroPCS is assumed to be included for the full 2013 financial
year based on a pro forma calculation.

The dividend for the 2013 and 2014 financial years is to be adjusted to
these plans, with a payment of 50 euro cents per dividend-bearing share
planned for both years. The plans for dividend payments are subject to
approval by the relevant bodies and the fulfillment of other legal
requirements.

The higher investment volume is to be used to roll out the broadband
infrastructure in Germany and the United States in particular. In the
mobile communications network, this will be done using the state-of-the-art
technology LTE. Around EUR 6 billion is earmarked for rolling out the
broadband infrastructure in the German fixed network with optical fiber and
vectoring between 2013 and 2020. In addition, T-Mobile USA has entered into
an agreement with Apple to bring products to market together in 2013.

Expected development of revenue in the operating segments and the Group.

Deutsche Telekom expects its revenues in the Germany segment to stabilize
in 2014. The Europe segment is expected to record organic growth again in
2014, i.e., without the impact of regulatory decisions, exchange rate
effects and exceptional state measures such as the imposition of additional
taxes. The U.S. business is to return to growth in the planning period. The
activities of the Digital Business Unit are expected to generate
double-digit growth rates until 2015. Deutsche Telekom expects T-Systems to
generate profitable revenue growth in its business with customers outside
the Deutsche Telekom Group.

Deutsche Telekom therefore expects the Group to generate additional revenue
in 2014 compared with the prior year (including MetroPCS on a comparable
basis).

Expected development of adjusted EBITDA in the Group for 2013 and 2014.

The forecast for the Group in its current structure is for adjusted EBITDA
of around EUR 17.4 billion in 2013 (forecast for 2012: around EUR 18
billion). Based on a pro forma calculation that assumes inclusion of
MetroPCS for the entire financial year 2013, adjusted EBITDA would amount
to around EUR 18.4 billion. Deutsche Telekom is planning a year-on-year
increase in adjusted EBITDA in 2014 (including MetroPCS on a comparable
basis).

Expected development of free cash flow in the Group for 2013 through 2015.

The Group's free cash flow is expected to decrease to around EUR 5 billion
in 2013 (scheduled figure for 2012: around EUR 6 billion), primarily as a
result of the increased capital expenditure and the systematic
implementation of the Challenger strategy in the U.S. market, including the
agreement with Apple. The Group's free cash flow is expected to be around
EUR 6 billion in 2015 (including MetroPCS).

Dividend planning for 2013 and 2014.

Subject to approval by the relevant bodies and the fulfillment of other
legal requirements, a dividend of 50 euro cents per dividend-bearing share
is to be paid for each of the financial years 2013 and 2014. The Company
also plans to offer shareholders the option of receiving payment in the
form of shares (dividend in kind). Both forms of payment are tax-free for
domestic shareholders.

Planning for key financial indicators.

The ratio of net debt to adjusted EBITDA from 2013 through 2015 is to
remain within the range of 2.0 to 2.5 as in the previous three years. The
equity ratio is also scheduled to remain in the same range as for the
previous period of 25 to 35 percent.

Deutsche Telekom continues to manage its liquidity reserve such that at
least capital market maturities for the forthcoming 24 months are covered
at any given time. Closely linked to this is the approach of a balanced
maturities profile.


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Information and Explaination of the Issuer to this News:

Disclaimer

This ad hoc notification 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.
They should therefore be considered 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 our 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, 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, our 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 non-GAAP financial performance measures, including, among
others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin,
adjusted EBIT, adjusted net profit, free cash flow, gross debt and net
debt. These non-GAAP measures should be considered in addition to, but not
as a substitute for, the information prepared in accordance with IFRS.
Non-GAAP financial performance measures are not subject to IFRS or any
other generally accepted accounting principles. Other companies may define
these terms in different ways.


Safe Harbor Statement

Additional information and where to find it
This document also relates to a proposed transaction between MetroPCS
Communications, Inc. ('MetroPCS') and Deutsche Telekom AG ('Deutsche
Telekom') in connection with T-Mobile USA, Inc. ('T-Mobile'). The proposed
transaction will become the subject of a proxy statement to be filed by
MetroPCS with the Securities and Exchange Commission (the 'SEC'). This
document is not a substitute for the proxy statement or any other document
that MetroPCS may file with the SEC or send to its stockholders in
connection with the proposed transaction. MetroPCS' investors and security
holders are urged to read the proxy statement (including all amendments and
supplements thereto) and all other relevant documents regarding the
proposed transaction filed with the SEC or sent to MetroPCS' stockholders
as they become available because they will contain important information
about the proposed transaction. All documents, when filed, will be
available free of charge at the SEC's website (www.sec.gov). You may also
obtain these documents by contacting MetroPCS' Investor Relations
department at +1 (214) 570-4641, or via e-mail at
investor_relations@metropcs.com. This communication does not constitute a
solicitation of any vote or approval.
Participants in the solicitation
MetroPCS and its directors and executive officers will be deemed to be
participants in any solicitation of proxies in connection with the proposed
transaction, and Deutsche Telekom and its directors and executive officers
may be deemed to be participants in such solicitation. Information about
MetroPCS' directors and executive officers is available in MetroPCS' proxy
statement dated April 16, 2012 for its 2012 Annual Meeting of Stockholders.
Other information regarding the participants in the proxy solicitation and
a description of their direct and indirect interests, by security holdings
or otherwise, will be contained in the proxy statement and other relevant
materials to be filed with the SEC regarding the proposed transaction when
they become available. Investors should read the proxy statement carefully
when it becomes available before making any voting or investment decisions.
Cautionary statement regarding forward-looking statements
This document includes 'forward-looking statements' for the purpose of the
'safe harbor' provisions within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended. Any statements made in this
document that are not statements of historical fact, including statements
about our beliefs, opinions, projections, and expectations, are
forward-looking statements and should be evaluated as such. These
forward-looking statements often include words such as 'anticipate,'
'expect,' 'suggests,' 'plan,' 'believe,' 'intend,' 'estimates,' 'targets,'
'views,' 'projects,' 'should,' 'would,' 'could,' 'may,' 'become,'
'forecast,' and other similar expressions.
All forward-looking statements involve significant risks and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements, many of which are generally outside the control
of MetroPCS, Deutsche Telekom and T-Mobile and are difficult to predict.
Examples of such risks and uncertainties include, but are not limited to,
the possibility that the proposed transaction is delayed or does not close,
including due to the failure to receive the required MetroPCS stockholder
approvals or required regulatory approvals, the taking of governmental
action (including the passage of legislation) to block the transaction, the
failure to satisfy other closing conditions, the possibility that the
expected synergies will not be realized, or will not be realized within the
expected time period, the significant capital commitments of MetroPCS and
T-Mobile, global economic conditions, disruptions to the credit and
financial markets, fluctuations in exchange rates, competitive actions
taken by other companies, natural disasters, difficulties in integrating
the two companies, disruption from the transaction making it more difficult
to maintain business and operational relationships, possible disruptions or
intrusions of MetroPCS' or T-Mobile's network, billing, operational support
and customer care systems which may limit or disrupt their ability to
provide service, actions taken or conditions imposed by governmental or
other regulatory authorities and the exposure to litigation.  Additional
factors that could cause results to differ materially from those described
in the forward-looking statements can be found in the MetroPCS' 2011 Annual
Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended
June 30, 2012 and other filings with the SEC available at the SEC's website
(www.sec.gov).
The forward-looking statements speak only as to the date made, are based on
current assumptions and expectations, and are subject to the factors above,
among others, and involve risks, uncertainties and assumptions, many of
which are beyond our ability to control or ability to predict. Neither
MetroPCS' investors and security holders nor any other person should place
undue reliance on these forward-looking statements. Neither MetroPCS,
Deutsche Telekom nor any other party undertake any duty to update any
forward-looking statement to reflect events after the date of this
document, except as required by law.

06.12.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Deutsche Telekom AG
              Friedrich Ebert Allee 140
              53113 Bonn
              Germany
Phone:        +49 (0)228 181-88880
Fax:          +49 (0)228 181-88899
E-mail:       investor.relations@telekom.de
Internet:     www.telekom.com
ISIN:         DE0005557508
WKN:          555750
Indices:      DAX, EURO STOXX 50
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse
              EUREX; Amsterdam, London, NYSE, Tokyo
 
End of Announcement                             DGAP News-Service
 
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