Debt capital strategy

The strategy of Deutsche Telekom is covered by a financial strategy with three key core points: 

  • Attractive dividend policy for shareholders
  • Security for investors
  • Increase of the company value ( ROCE)

Having undisputed access to the debt capital markets at all times is the core objective of Deutsche Telekom's debt capital strategy.

Please click on the terms below for further details about the cornerstones of our debt strategy:

In order to ensure unhindered access to the debt capital market at all times, Deutsche Telekom has set the following target corridor for its finance strategy: Credit ratings are to be in the solid investment grade, i.e., not over A- and not under BBB.

Deutsche Telekom's current ratings correspond to these requirements:

Moody'sS & PFitch
Long-term rating Baa1BBB+BBB+
OutlookStableStableStable
Short-term ratingP-2A-2F2
Current studyDownload  (pdf, 1.2 MB)Download  (pdf, 376.9 KB)Download (pdf, 45.0 KB)


Compared with most competitors in the telecommunications industry, the development of Deutsche Telekom's rating has been stable over the last few years. more

Net debt is an important key performance indicator for investors, analysts and rating agencies. It is one of the Group's key management ratios, especially as a component of relative financial ratios such as net debt/adj. EBITDA, and fundamental information for the international financial markets. 

DT has a strong commitment to its financial policy and a long standing track record to stay within its tolerance levels: 

Net debt/adj. EBITDA ratio stayed stable with 2.3x as of September 2017 in comparison to  the end of 2016. The main factors influencing this change are given in the overview below.

Net debt increased from EUR 50.0 billion at the end of 2016 to EUR 52.6 billion as of September 2017. 

  • The increase was attributable to the spectrum acquisition (EUR 7.3 billion) and 
  • the dividend payments – including to non-controlling interests – (EUR 1.6 billion), 
  • partially offset by the positive effects from free cash flow (EUR 4.4 billion) and 
  • the sale of Strato (EUR 0.6 billion) and further shares in Scout24 AG (EUR 0.3 billion). 
  • Exchange rate effects of EUR 2.6 billion also had a positive effect.

The increase in adj. EBITDA1 from EUR 21.4 billion at the end of 2016 to EUR 22.5 billion as of September 2017 stabilized the net debt/adj. EBITDA ratio.

More information on net debt and how it has developed please refer to the interim report as of September 30, 2017 (pdf, 705.9 KB) on page 13. For more information on the adj. EBITDA development please refer to page 11.


1Ratios for the interim quarters calculated on the basis of previous four quarters

One of the guidelines for our financial policies defines an equity ratio corridor of between 25 and 35 percent. Fixing of the equity ratio in this interval helps on the one hand to optimize risk for all equity and liabilities and on the other hand to increase the return on equity. The limiting factor for the level of debt is a defined ratio of net debt to EBITDA of between 2.0x and 2.5x.

Deutsche Telekom ensures the solvency and financial flexibility of the Group at all times by means of an adequate liquidity reserve. Credit lines and cash are assessed as covering the maturities of bonds and loans of the next 24 months. As of September 30, 2017 the liquidity reserve amounts to EUR 13.9 billion.
For more information on the liquidity reserve, please refer to page 17 of the current  Q3/2017 Backup (pdf, 2.0 MB).

T-Mobile US and OTE have the possibility to finance themselves independently on the international debt capital markets. Both subsidiaries therefore have their own rating. For further details please refer to the company websites (TMUS, OTE). For an overview of TMUS’ current capital structure please see Q3 2017 IR back-up (pdf, 2.0 MB) on page 18.

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You have questions about the Telekom Share, financial reports or similar topics? Contact us!

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Investor Relations

Deutsche Telekom

investor.relations@telekom.de

Phone: +49 228 181‐88880

Fax: +49 228 181‐88899

investor.relations@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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Markus Schäfer

Vice President Debt Capital Markets

markus.schaefer01@telekom.de

Phone: +49 228 181‐84255

markus.schaefer01@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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Christian Kuhlen

Senior Expert Debt Capital Markets

christian.kuhlen@telekom.de

Phone: +49 228 181‐87842

christian.kuhlen@telekom.de

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Friedrich-Ebert-Allee 140, 53113 Bonn

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