Deutsche Telekom (DTE) CMD 2024 Day 1 summary

Strategic Vision and Growth Ambitions

• Accelerating growth through AI, digitalization, and global scale, leveraging a proven flywheel model and data-driven strategies across B2C and B2B segments.

• Service revenue targeted to grow at 4% CAGR, with adjusted EBITDA AL up 4–6% and adjusted EPS rising over 11% annually to €2.50 by 2027.

• Free cash flow AL projected at €21 billion by 2027, with ROCE increasing to ~9% and leverage ratio maintained at or below 2.75x.

• Portfolio management and capital allocation remain flexible, focusing on value creation through asset optimization, M&A, and strategic investments.

• Sustainability and ESG are integral, targeting ≥-55% Scope 1–3 emissions by 2030, net zero by 2040, and expanded digital inclusion and circularity programs.

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 €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 has increased 84% since 2020, now ranked top in the industry globally and ninth across all sectors in Europe.

• Customer engagement initiatives like Magenta Moments and Magenta Status have improved NPS, reduced churn, and are expected to unlock €1.5 billion in new digital revenue by 2027.

• Digital transformation has reduced complaints, increased app penetration, and improved operational efficiency.

Technology, AI, and Efficiency

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

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

• Fiber rollout targets: 2.5 million German homes passed annually (17.5 million by 2027), 1 million per year in Europe (13.5 million by 2027), and 12–15 million in the U.S. by 2030.

• 5G coverage in Europe to expand from 78% to 95% by 2027, with leadership in network quality and speed.

• Efficiency improvements to reduce indirect costs (excl. US) by 3–5 percentage points by 2027, leveraging automation and shared operating models.