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*
Deutsche Telekom has committed to an attractive dividend policy: For the fiscal years 2015-2018 dividends per share will grow in line with Free Cash-Flow with a guaranteed minimum of 0.50 € per share.
The Free Cash-Flow will grow by around 4% in fiscal year 2015 (from 4.1 to 4.3 bn €) and step up in 2016. Free Cash-Flow is planned to grow on average around 10% per year between 2014 and 2018.
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)
Stock chartMay 29, 2015 | 05:45 PM
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Aug 06, 2015
2nd Quarter 2015: Financial report as of June 30
Oct 15, 2015
Presentation with SdK at Volksbank Gelsenkirchen