Deutsche Telekom’s Finance Strategy

Deutsche Telekom’s corporate strategy is supported by a financial strategy, which focuses on three key aspects.

1. Attractive Payout-Policy for Shareholders*
For the years 2015-2018 Deutsche Telekom intends to pay out a dividend as follows:

  • 2015: € 0.50 per share (paid out in June 2016)
  • 2016: Floor at € 0.50 per share (Following FCF growth)
  • 2017: Floor at € 0.50 per share (Following FCF growth)
  • 2018: Floor at € 0.50 per share (Following FCF growth)

* Subject to approval from the responsible boards


2. Security for providers of debt capital
Deutsche Telekom seeks to have undisputed access to the debt capital markets at any time. Solid balance sheet ratios are meant to guarantee this access.Therefore Deutsche Telekom sets itself the following comfort zone targets/ratios:

  • Rating: A-/BBB
  • Ratio net debt/adj. EBITDA: 2 – 2.5x
  • Equity ratio: 25-35%
  • Liquidity reserve covering maturities of coming 24 months


3. Increase of Return on Capital Employed
The finance strategy focuses on three main topics to support the sustainable value generation.

  • Efficiency Management: Reduce indirect costs by € 1.8 bn (2018 vs 2014 baseline)
  • Portfolio Management: No big M&A, Strategic review of Scout Group and Everything Everywhere
  • Risk Management: Low risk country portfolio (85% of SotP)

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