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Telefonica Deutschland Holding AG

Earnings Release Nov 6, 2012

6212_rns_2012-11-06_2c550f54-5cad-4bd7-933d-e921ac9c297d.html

Earnings Release

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Corporate | 6 November 2012 07:28

Telefónica Deutschland Holding AG: Telefónica Deutschland releases Third Quarter 2012 Results

Telefónica Deutschland Holding AG / Key word(s): Quarter Results

06.11.2012 / 07:28


06 November2012

Telefónica Deutschland releases Third Quarter 2012 Results

MUNICH. Telefónica Deutschland released a good set of results for the three months ending 30 th September 2012 after its recent IPO, with continued trading momentum in the postpaid segment that translated into strong revenue growth and acceleration in the profitability of the business, including strong FCF generation.

'I am pleased with the performance of the business, which clearly reflects our strategy of mobile data monetization in the postpaid segment' says René Schuster, CEO of Telefónica Deutschland. 'After our recent IPO, I am convinced that we are raising our profile further, and we will continue the successful growth story of Telefónica Deutschland in Germany in the long term.'

Third quarter operational and financial highlights:

Solid increase of mobile postpaid base (+10.3% year-on-year) to account for 51.7% of the base at the end of September leveraging trading momentum across segments and improved churn to 1.4%.

Stable year-on-year ARPU performance as a result of the improved customer mix and successful data monetization.

Sound wireless service revenues performance at 5.6% year-on-year, with mobile data revenues growing 14.2% to reach 43.7% of wireless service revenues.

Continued sequential OIBDA performance at 12.5% year-on-year growth and margin progression to 25.7% (+1.9 percentage points year-on-year).

Increased investments in the network , improving 3G data capacity and accelerating LTE network rollout, targeting 15% of German population coverage by end of 2012.

Strong Operating Cash Flow generation of 484 million euros up to September 2012 that translated into Free Cash Flow of 549 million euros and a net debt position of 1,058 million euros at the end of the period.

Telefónica Deutschland operating performance

At the end of September 2012, Telefónica Deutschland had 25.3 million customer accesses , a year-on-year increase of 4.1%.

Main commercial highlights for the third quarter of 2012 in the mobile segment include:

– New 'O 2 Loop' tariffs in the prepaid segment launched from 7 th August.

– New 'O 2 Blue' propositions from 14 th September, including LTE enhanced speed option in the XL tariff.

– iPhone 5 launch from 21 st September, with satisfactory pre-order figures and executed sales.

Mobile postpaid segment continued being the main contributor of customer growth across retail and partner channels, adding 171 thousand accesses in the third quarter of 2012 to reach 9.9 million on the back of strong gross additions and reduced churn at 1.4% (-0.2 percentage points, year-on-year). Continued demand for smartphones, mainly through 'O 2 My Handy' model (more than 95% of total handset sales in the third quarter) and new commercial propositions under 'O 2 Blue' portfolio for the consumer segment and 'O 2 on' for the SME/Soho segment, were the main drivers for this performance.

Smartphone penetration reached 24.3% at the end of September 2012, a significant improvement of 5.7 percentage points over the previous year.

The mobile prepaid segment added 109 thousand accesses in the third quarter of 2012, including O 2 core and partner brands, particularly after the launch of 'O 2 Loop' tariffs in August.

Mobile ARPU evolution remained solid, with a 1.7% increase year-on-year in the first nine months of 2012 (+0.3% in the third quarter), on the back of the improved customer mix and successful data monetization, with mobile data ARPU performance outweighing voice ARPU.

Retail fixed broadband accesses declined by 61 thousand in the third quarter of 2012 in a slowing market.

Telefónica Deutschland financial performance

Telefónica Deutschland revenues reached 3,871 million euros in the first nine months of the year 2012, a 4.5% year-on-year growth (+4.1% in the third quarter).

Wireless service revenues stood at 2,359 million euros, showing a sound performance over the previous year (+8.1% up to September 2012; +5.6% in the third quarter). The slowdown in wireless service revenues growth from the first half of the year is on the back of an exceptionally strong third quarter of 2011 (+9.1% year-on-year, excluding the impact of mobile termination rate cuts). In 2012, in the postpaid segment, we have seen lower trading volumes than in 2011 and postpaid ARPU, despite being stable quarter-on-quarter, is below outstanding levels of the third quarter of 2011.

The main driver for revenue growth was mobile data (+18.0% year-on-year; +14.2% in the third quarter), thanks to the increased penetration of integrated tariffs in the base (mainly 'O 2 Blue' portfolio). The Company continued monetizing the data opportunity, with non-SMS data revenues growing by 31.7% year-on-year up to September 2012 (+28.3% year-on-year in the third quarter). Non-SMS data revenues as a percentage of total data revenues were 57.9% in the third quarter, 6.4 percentage points above the same period of last year.

Handset revenues reached 472 million euros, an increase of 4.6% year-on-year (+13.7% in the third quarter), which is a reflection of the continued success of the 'O 2 My Handy' model.

Wireline revenues stood at 1,036 million euros (-3.1% year-on-year; -3.4% in the third quarter), a stable performance quarter-on-quarter in a competitive market.

Operating expenses amounted to 2,980 million euros, a year-on-year increase of 2.1% (+1.6% in the third quarter), lower than revenue growth. Main drivers for the January-to-September 2012 period were:

Supplies growing 6.2% year-on-year (+8.4% in the third quarter), due to strong demand of smartphones and increased mobile interconnection expenses on higher usage of voice services.

Personnel expenses increase of 2.7% year-on-year to 337 million euros. The increase in the third quarter was +6.9%, due to general increase in salaries from July 1 st and the change in the mix of our employee base towards the commercial areas.

Other expenses decrease of 3.5% year-on-year (-9.1% in the third quarter) to 1,074 million euros, with savings in commercial activity compensating higher infrastructure operating expenses and Group management fees.

As a result, Operating Income before Depreciation and Amortization (OIBDA) reached 936 million euros in the first nine months of the year 2012 (+12.4% year-on-year; +12.5% in the third quarter). OIBDA margin for the first nine months of the year was 24.2% (25.7% in the third quarter), a year-on-year increase of 1.7 and 1.9 percentage points, respectively.

OIBDA excluding management fees totaled 986 million euros in the nine months to September 2012 (+13.2% year-on-year); accelerating to 14.1% in the third quarter. OIBDA margin continued its sequential positive performance, growing 2.0 percentage points year-on-year to 25.5% in the first nine months of the year 2012 (+2.4 percentage points in the third quarter to 27.2%). This strong performance was mainly the result of mobile data revenue growth benefitting from scale, as well as further efficiencies in the commercial area offsetting higher growth-related costs in infrastructure.

Depreciation&amortization amounted to 832 million euros in the first nine months of the year 2012, a year-on-year increase of 4.3% (-1.4% in the third quarter), mainly driven by the amortization of LTE spectrum licenses that were acquired in 2010, but activated for commercial service from 1 st July 2011 and past investments made on the network.

Operating income amounted to 104 million euros in the January-September 2012 period (55 million euros in the third quarter), which is a significant improvement over previous year's period at 35 million euros (13 million euros in the third quarter).

Net financial income for the January-September 2012 period was 2.8 million euros, while in the third quarter it turned to an expense of 1.7 million euros due to the different pre-IPO activities during the quarter that resulted into a net debt position at the end of September.

Income Tax was positive in 1.5 million euros in the first nine months of the year 2012 as compared to the negative figure of 1.8 million euros accrued in the same period of 2011, attributable to a change in determination of recoverability of deferred taxes.

As a result, net profit for the January-September 2012 period amounted to 108 million euros, a significant improvement over the previous year at 37 million euros.

CapEx in the first nine months of the year 2012 amounted to 452 million euros, an increase of 21.3% year-on-year (+40.2% in the third quarter), supporting future growth with accelerated investment in the development of the LTE network and increase of capacity in the 3G network, in line with Company's expectations, and with a different phasing of investments than in 2011.

Operating Cash Flow (OIBDA-CapEx) increased 5.1% year-on-year to reach 484 million euros, and this translated into Free Cash Flow of 549 million euros in the January-September 2012 period, with a positive working capital contribution of 62 million euros. The different silent factoring agreements of 'O 2 My Handy'-related customer receivables had a net positive impact of 199 million euros in the January-September 2012 period.

The net financial debt stood at 1,058 million euros at the end of September, 2012, with a leverage ratio of 0.85x.

APPENDIX – DATA TABLES

TELEFÓNICA DEUTSCHLAND HOLDING AG

SELECTED FINANCIAL DATA

Unaudited figures (Euros in millions)

January – September July – September
2012 2011 % Chg 2012 2011 % Chg
Revenues 3.871 3.705 4,5 1.317 1.266 4,1
Operating income before Depreciation and Amortization (OIBDA) 936 833 12,4 339 301 12,5
OIBDA Margin 24,2% 22,5% 1,7%-p. 25,7% 23,8% 1,9%-p.
Group Fees (50) (38) 31,6 (19) (12) 55,6
Operating income before Depreciation and Amortization (OIBDA) and before Group Fees 986 871 13,2 358 313 14,1
OIBDA before Group Fees Margin 25,5% 23,5% 2,0%-p. 27,2% 24,8% 2,4%-p.
Operating income (OI) 104 35 n.m. 55 13 n.m.
Profit for the year 108 37 n.m. 53 14 n.m.
Basic earnings per share (EUR) (1) 0,10 0,03 n.m. 0,05 0,01 n.m.
CapEx 452 373 21,3 181 129 40,2
OpCF (OIBDA-CapEx) 484 461 5,1 158 172 (8,3)
Free Cash Flow pre dividends (2) 549 170 n.m. 152 (20) n.m.

(1) For better comparability with future financial information, the current number of shares in the Company of 1,116,945,400 has been used.

(2) Free Cash flow pre dividends defined as OpCF minus working capital minus interest payments and taxes minus other changes.

Note:

– OIBDA margin and OIBDA before Group Fees margin are calculated as percentage of total Revenues, respectively.

TELEFÓNICA DEUTSCHLAND HOLDING AG

ACCESSES

Unaudited figures (in thousand)

2011 2012 % Chg (YoY)
Q3'2011 FY 2011 Q1'2012 Q2'2012 Q3'2012 Q3'11 vs Q3'12
Final Clients Accesses 23.220 23.441 23.943 24.070 24.215 4,3
Fixed telephony accesses 2.042 2.055 2.403 2.353 2.296 12,4
Internet and data accesses 2.949 2.922 2.866 2.811 2.740 (7,1)
Narrowband 347 335 319 320 310 (10,5)
Broadband 2.603 2.588 2.547 2.491 2.430 (6,6)
Mobile accesses 18.146 18.380 18.595 18.834 19.114 5,3
Prepay 9.181 9.144 9.066 9.116 9.225 0,5
Postpaid 8.965 9.236 9.529 9.718 9.889 10,3
Postpaid (%) 49,4% 50,2% 51,2% 51,6% 51,7% 2,3%-p.
Smartphone penetration (%) (1) 18,5% 20,1% 21,1% 22,7% 24,3% 5,7%-p.
Pay TV 83 83 79 73 65 (21,8)
Wholesale Accesses (2) 1.112 1.042 1.059 1.089 1.105 (0,7)
Total Accesses 24.332 24.483 25.002 25.159 25.320 4,1

(1) Smartphone penetration is calculated based on the number of customers with a smallscreen tariff (e.g., for smartphones) divided by the total mobile customer base, less M2M and customers with a bigscreen tariff (e.g., for Surfsticks, Dongles, Tablets).

(2) Wholesale accesses incorporate unbundled lines offered to 3rd party operators, including fixed-line telephony and high-speed Internet access.

TELEFÓNICA DEUTSCHLAND HOLDING AG

SELECTED OPERATIONAL DATA

Unaudited figures

2011 2012 % Chg (QoQ)
Q3'2011 Q4'2011 Q1'2012 Q2'2012 Q3'2012 Q3'11 vs Q3'12
ARPU (EUR) 14,0 13,8 13,5 13,9 14,0 0,3
Prepay 5,8 5,8 5,3 5,5 5,7 (1,4)
Postpaid 22,5 21,8 21,4 21,7 21,8 (2,8)
Data ARPU (EUR) 5,8 5,9 6,0 6,1 6,2 8,1
% non-SMS over data revenues 51,6% 52,0% 53,9% 54,9% 57,9% 6,4%-p.
Voice Traffic (m min) 6.907 7.208 7.365 7.399 7.228 4,6
Churn (%) -2,1% -2,5% -2,4% -2,0% -2,1% 0,0%-p.
Postpaid churn (%) -1,6% -1,8% -1,6% -1,4% -1,4% 0,2%-p.
2011 2012 % Chg (YoY)
Jan – Sep Jan – Dec Jan – Mar Jan – June Jan – Sep Jan – Sep
ARPU (EUR) 13,6 13,6 13,5 13,7 13,8 1,7
Prepay 5,7 5,7 5,3 5,4 5,5 (2,5)
Postpaid 21,9 21,9 21,4 21,6 21,7 (0,9)
Data ARPU (EUR) 5,5 5,6 6,0 6,1 6,1 10,6
% non-SMS over data revenues 49,8% 50,4% 53,9% 54,4% 55,6% 5,8%-p.
Voice Traffic (m min) 20.785 27.993 7.365 14.763 21.991 5,8
Churn (%) -2,2% -2,2% -2,4% -2,2% -2,2% 0,0%-p.
Postpaid churn (%) -1,7% -1,7% -1,6% -1,5% -1,5% 0,2%-p.

Notes:

– ARPU calculated as monthly quarterly average.

– Traffic is defined as minutes used by the company customers, both outbound and inbound. On-net traffic is only included once (outbound), and promotional traffic is included. Traffic not associated to the Company's mobile customers (roaming-in, MVNOs, interconnection of third parties and other business lines) is excluded. Traffic volume non rounded.

TELEFÓNICA DEUTSCHLAND HOLDING AG

COMBINED INCOME STATEMENT

Unaudited figures (Euros in millions)

January – September July – September
2012 2011 % Chg 2012 2011 % Chg
Revenues 3.871 3.705 4,5 1.317 1.266 4,1
Other income 45 45 15 13 12,6
Operating expenses (2.980) (2.917) 2,1 (993) (978) 1,6
Supplies (1.569) (1.477) 6,2 (543) (501) 8,4
Personnel expenses (337) (328) 2,7 (111) (104) 6,9
Other expenses (1.074) (1.112) (3,5) (339) (373) (9,1)
Operating income before Depreciation and Amortization (OIBDA) 936 833 12,4 339 301 12,5
OIBDA Margin 24,2% 22,5% 1,7%-p. 25,7% 23,8% 1,9%-p.
Depreciation and amortization (832) (798) 4,3 (284) (289) (1,4)
Operating income (OI) 104 35 n.m. 55 13 n.m.
Net financial income (expense) 3 4 (20,0) (2) 1 n.m.
Income before taxes 107 38 n.m. 53 14 n.m.
Income taxes 2 (2) n.m. 0 0 n.m.
Profit for the year 108 37 n.m. 53 14 n.m.
Assumed number of shares (millions)1) 1.117 1.117 1.117 1.117
Basic earnings per share (euros) 0,10 0,03 n.m. 0,05 0,01 n.m.

Notes:

(1) For better comparability with future financial information, the current number of shares in the Company of 1,116,945,400 has been used.

TELEFÓNICA DEUTSCHLAND HOLDING AG

REVENUE BREAKDOWN

Unaudited figures (Euros in millions)

January – September July – September
2012 2011 % Chg 2012 2011 % Chg
Revenues 3.871 3.705 4,5 1.317 1.266 4,1
Wireless Business 2.832 2.633 7,5 977 914 6,9
Wireless Service Revenues 2.359 2.182 8,1 812 769 5,6
Handset Revenues 472 452 4,6 165 145 13,7
Wireline Business 1.036 1.069 (3,1) 338 350 (3,4)
Other 3 3 22,7 1 1 59,2

TELEFÓNICA DEUTSCHLAND HOLDING AG

COMBINED STATEMENT OF FINANCIAL POSITION

Unaudited figures (Euros in millions)

September 2012 December 2011 % Chg
Non-current assets 7.522 7.900 (4,8)
Goodwill 706 706
Other intangible assets 3.373 3.658 (7,8)
Property, plant and equipment 3.024 3.119 (3,0)
Other non-current financial assets 6 6
Deferred tax assets 414 412 0,4
Current assets 2.099 5.115 (59,0)
Inventories 52 70 (25,9)
Trade and other receivables 1.142 1.010 13,0
Other current financial assets (1) 0 2.886 n.m.
Cash and cash equivalents 905 1.149 (21,2)
Total Assets = Total Equity and Liabilities 9.621 13.015 (26,1)
Equity 5.533 11.756 (52,9)
Net assets attributable to Telefonica Germany Group 5.532 11.755 (52,9)
Other components of equity 1 1
Total equity attributable to Telefonica Germany Group 5.533 11.756 (52,9)
Non-current liabilities 1.086 75 n.m.
Non-current interest-bearing debt (2) 1.000 0 n.m.
Other payables 6 6 (11,5)
Non-current provisions 81 69 16,8
Current liabilities 3.002 1.184 n.m.
Current interest-bearing debt (2) 953 0 n.m.
Trade payables 984 786 25,3
Other payables (3) 893 187 n.m.
Current provisions 20 42 (52,5)
Deferred income 152 170 (10,8)
Financial Data
Net Financial Debt (4) 1.058 (4.023) n.m.
Leverage (5) 0.85x -3.5x n.m.

(1) In 2012 as part of the pre-IPO dividend payment claim of EUR7.2bn an existing capital promise in the amount of EUR2.9bn has been set-off .

(2) Pre-IPO dividend payment in 2012 has been funded through a withdrawal of capital reserves of Telefónica Germany GmbH & Co. OHG ('OHG'). To this end, OHG, inter alia, used available cash and intra-group loans granted and paid out by TGB.V., an entity of the Telefónica Group, in the amount of EUR1.25 billion and EUR703 million, respectively.

(3) 2012 figure consists of a prepayment in the amount of EUR703m due to the sale of Telefónica Global Activities Holdings B.V. which was received prior to the effective date.

(4) Includes: Non-current interest-bearing debt + non-current other payables + current interest-bearing debt + other current payables (EUR4,698k in 2012 and EUR5,444k in 2011) – other current financial assets – cash and cash equivalents.

(5) Leverage defined as Net Financial Debt divided by LTM OIBDA excluding non-recurring factors.

TELEFÓNICA DEUTSCHLAND HOLDING AG

RECONCILIATIONS OF CASH FLOW AND OIBDA MINUS CAPEX

Unaudited figures (Euros in millions)

2012 2011 2012 2011
Jan – Sep Jan – Sep Jul – Sep Jul – Sep
OIBDA 936 833 339 301
– CapEx (452) (373) (181) (129)
\= Cash Contribution (OpCF) 484 461 158 172
+ Silent factoring (1) 199 0 138 0
-/+ Other working capital movements (137) (300) 100 16
Change in Working Capital 62 (300) 238 16
+/- Gains/losses from sale of fixed assets and other effects (1) 3 0 0
– Taxes paid 0 0 0 0
+ Net interest payments 3 6 0 2
\= Free Cash Flow pre dividends 549 170 397 190
-/+ Equity movements (2) (3.446) (1) (3.446) (1)
\= Free Cash Flow post dividends (2.897) 169 (3.049) 190

(1) Full impact of silent factoring of EUR199m (EUR48m from silent factoring deal in March 2012 and EUR151m from silent factoring deal in September).

(2) Net payment as of September 2012 consists of a pre-IPO dividend of EUR4.3bn, net proceeds from prepayments of EUR854.5m in connection with the termination of the profit and loss transfer agreements with the carve-out entities G3G, Quam, TGS and TGR.

2012 2011 2012 2011
Jan – Sep Jan – Sep Jul – Sep Jul – Sep
\= Free Cash Flow pre dividends 549 170 397 190
Assumed number of shares (millions)1) 1.117 1.117 1.117 1.117
\= Free Cash Flow per share (EUR) 0,49 0,15 0,36 0,17

Notes:

1) For better comparability with future financial information, the current number of shares in the Company of 1,116,945,400 has been used.

TELEFÓNICA DEUTSCHLAND HOLDING AG

NET FINANCIAL DEBT EVOLUTION

Unaudited figures (Euros in millions)

January – June 2012
Cash &

Cash Equivalents
Capital

Promise
Intercompany

Loans
Finance Lease

Liabilities
Net Financial

Debt (1)
Net financial debt as of Jan 1, 2012 1.148,6 2.885,9 0,0 11,8 -4.022,7
OIBDA 597,1
– CapEx -270,9
\= Cash Contribution (OpCF) 326,3
+ Silent factoring 48,3
-/+ Other working capital movements -224,4
Change Working Capital -176,1
+/- Gains/losses from sale of fixed assets and other effects -0,8
+ Net interest proceeds 2,8
\= Free Cash Flow pre dividends 152,2 152,2 -152,2
Financing Measures
-/+ Net payment depending equity movements 0,4 -0,4
-/+ Change in finance lease liabilites -2,0 0,6 2,6
Financing measures -1,6 0,0 0,0 0,6 2,2
Net financial debt as of June 30, 2012 1.299,1 2.885,9 0,0 12,3 -4.172,6
July – September 2012
Cash &

Cash Equivalents
Capital

Promise
Intercompany

Loans
Finance Lease

Liabilities
Net Financial

Debt (1)
Net financial debt as of July 1, 2012 1.299,1 2.885,9 0,0 12,3 -4.172,6
OIBDA 339,1
– CapEx -181,2
\= Cash Contribution (OpCF) 157,8
+ Silent factoring (2) 138,2
-/+ Other working capital movements 100,3
Change Working Capital 238,5
+/- Gains/losses from sale of fixed assets and other effects 0,1
+ Net interest proceeds 0,4
\= Free Cash Flow pre dividends 396,8 396,8 -396,8
Financing Measures
– Withdrawal of capital promise -2.885,9 2.885,9
– Pre-IPO dividend payment -4.300,0 4.300,0
+ Shareholder loan 1 (long-term) 1.000,0 1.000,0 0,0
+ Shareholder loan 1 (short-term) 250,0 250,0 0,0
+ Shareholder loan 2 (short-term) 703,0 703,0 0,0
+ Shareholder contribution (Sale of company) 703,0 -703,0
+ Shareholder contribution (existing profit and loss transfer agreements) 854,0 -854,0
-/+ Change in finance lease liabilites -0,9 -2,0 -1,1
Financing measures -791,0 -2.885,9 1.953,0 -2,0 5.627,8
Net financial debt as of September 30, 2012 904,9 0,0 1.953,0 10,3 1.058,4

(1) Net financial debt defined as Intercompany loans plus financial lease liabilities minus cash & cash equivalents minus capital promise.

(2) Full impact of silent factoring of EUR199m (EUR48m from silent factoring deal in March 2012 and EUR151m from silent factoring deal in September).

Further information:

Telefónica Deutschland Holding AG

Investor Relations

Georg-Brauchle-Ring 23-25

80992 München

Victor J. García-Aranda, Head of Investor Relations

[email protected]

www.telefonica.de/investor-relations

Disclaimer:

This document contains statements that constitute forward-looking statements about Telefónica Deutschland Holding AG (going forward, 'the Company' or Telefónica Deutschland) that reflect the current views of Telefónica Deutschland's management with respect to future events, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations which may refer, among others, to the intent, belief or current prospects of the customer base, estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Forward-looking statements are based on current plans, estimates and projections.

The forward-looking statements in this document can be identified, in some instances, by the use of words such as 'expects', 'anticipates', 'intends', 'believes', and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements, by their nature, are not guarantees of future performance and are subject to risks and uncertainties, most of which are difficult to predict and generally beyond Telefónica Deutschland's control, and other important factors that could cause actual developments or results to materially differ from those expressed in or implied by the Company's forward-looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Telefónica Deutschland with the relevant Securities Markets Regulators, and in particular, with the German Market Regulator (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin). The Company can offer no assurance that its expectations or targets will be achieved.

Analysts and investors, and any other person or entity that may need to take decisions, or prepare or release opinions about the securities issued by the Company, are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this document.

Except as required by applicable law, Telefónica Deutschland undertakes no obligation to release publicly the results of any revisions to these forward-looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telefónica Deutschland's business or acquisition strategy or to reflect the occurrence of unanticipated events.

This document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Telefónica Deutschland.

Finally, it is stated that neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities of the Company, or any advice or recommendation with respect to such securities.

These written materials are not an offer of securities for sale in the United States, Canada, Australia, South Africa and Japan. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption therefrom. The issuer or selling security holder has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.

End of Corporate News


06.11.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de


Language: English
Company: Telefónica Deutschland Holding AG
Georg-Brauchle-Ring 23-25
80992 München
Germany
Phone: +49 (0)89 24 42 0
Internet: www.telefonica.de
ISIN: DE000A1J5RX9
WKN: A1J5RX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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191605  06.11.2012

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