Welcome. Welcome to the 2021 Deutsche Telekom Capital Markets Day. Here we go again. We gave you three years to recover from our last Capital Markets Day, but now we could not spare you any longer. There's just too much goodness we must share with you. Welcome to you all. Welcome to our first fully virtual Capital Markets Day. Sadly, we are not all together in Bonn. To be sure, the Deutsche Telekom management team is here. They're actually over there. Can we have a picture of them? Can we show them, please? Can you wave, guys? Okay, here they are. You will hear from all of them. Thank you. There will be no barbecue this time, no wine, no heavy digging machinery. Sorry. How can we make up for it? Well, we got eight powerful presentations, cool slides, your favorite color, Magenta, and black background, topped up with slick videos and a replay function. Not to forget, many compelling messages. If we do something, we do it properly. What's the order of play? We start with our CEO. He will present you our group strategy and capital allocation. Our guidance is for the usual four years, but our thinking goes further. Next will be Srini and Dominique, who will talk about leading in networks, in customer experience, in digitization, about acceleration. Finally, for today, Mike and team will outline their plans for T-Mobile US. This will bring us to the end of the first day. Tomorrow, we will have presentations from Claudia Nemat on IT and technology, from Adel Al-Saleh on T-Systems, from Thorsten Langheim on group development, and finally from Christian Illek, who will put it all together in terms of numbers. Here are a couple of technical points. Please take a look at our usual disclaimer that is contained in the presentation. If you want to join the Q&A session and place a question with video, please dial in via Zoom or Webex. We'd love to see your face. Please click on the Raise Your Hand button, and our operator will guide you to a technical check. If you'd like to ask a question via audio line, please press star one. Okay. Now I'm excited to present our first speaker, our CEO, our unstoppable leader, Tim Höttges. Welcome, everybody. Where are you? I hope you're doing well during these difficult times. It's a little bit like results day at school today, as well about the question about what kind of job do we have in the future. This is what I'm going to talk about. It's a pleasure that you're spending the time with us today. I have to admit, it's an easy one because it's my fourth Capital Markets Day. Looking in hindsight, I'm very happy about, let's say, how we performed over the last three years, looking at the results we have achieved. This is due to an outstanding team in this industry, I think to an outstanding strategy of very focused approach of delivering of what we have promised and even sticking out to the others in this industry and outperforming them as well from a capital market perspective. That leads me already to my first slide, which is the full monty of all the messages in a nutshell. For the ones who don't have time or want to do their sports in the afternoon or who want to, let's say, hang out with other companies, here we go, just digest this slide. With this, you got it all. This is, by the way, how we are looking into the future. That is built on two pillars. The one is the organic pillar. It's the way how we operate in our telecommunication industries. The second pillar is at least as same importance, which is the way how we think, how we allocate money, and the way how we are organizing the portfolio which we are running. This all is residing in the commitments which we are giving for the future. This is what we're doing already for quite some time. This is our so-called flying wheel. The flying wheel is very simple. On the one side, we always invest more than our competition. This is the idea, a little bit better, a little bit higher from a quality perspective, which on the other side, gives us the opportunity to gain more customers. Gaining more customers on the infrastructure will help us to create higher efficiency, which means the productivity of our network is higher than the ones from our competition. The high efficiency plus more customers is, as a consequence, resulting in more profitability and higher financials, and the higher financials made us able to go into further investments, which is helping us to outperform the competition. To give you just a number. Since I'm CEO, I've invested EUR 85 billion, without spectrum, into this flying wheel. This is, by the way, EUR 37 billion more than what Vodafone invested, EUR 37 more than what Orange invested, and EUR 27 billion more than what Telefónica has invested. This is, by the way, at the end of the day, this is the consequence why we are doing better than the others. Going forward, we are accelerating. If you would ask me today, what is the headline of our Capital Markets Day? It's acceleration. It's acceleration. We have a sound foundation. Now we accelerate on the KPIs. There is a revenue CAGR of 1% to 2%. Looks like the other one, which we had previous one. Behind that is a revenue growth, a service revenue growth of 3% to 4% commitment, which we foresee. Our profitability is going to increase by 3% to 5%. This is more than what we were able to deliver on last time. We are very confident that we can accelerate on the profitability of that company. The last time we were talking about EUR 8 billion free cash flow for this group as our ambition level. Now, we are handing out a commitment of EUR 18 billion as the minimum which we foresee for our 2024 ambitions. On top of that, we even want to be leading, more leading on the capital returns, which we are delivering on our network. You know that the ROCE is one of our core KPIs and always was. It was Deutsche Telekom, by the way, bringing it into this telecommunication industries. Now we are achieving, and we are aiming for 6.5% return on capital employed as a minimum for the foreseeable future at Deutsche Telekom's infrastructure. This is the organic growth and the flying wheel which we foresee. On top of that, the capital allocation is for us very important. It always was. If we cannot live with only the organic growth, we have to find ways to generate value outside or within the portfolio. The first thing what we are doing is we invest more to be leading in 5G across the globe, the trans-Atlantic position which we hold, and we're going to be the number one in fiber investment in the European footprint. This is something where Dominique Leroy and Srini Gopalan will talk about. On top of that, network is nice, but monetization is the must if you invest this amount of EUR billions into the infrastructure. The second topic is focus on structurally healthy markets. For us, a very important thing. If we do not find a market which is structurally in order, if we find a market which is over-regulated, over-competitive, we are even willing to leave that market. We did that already in the past. Think about Telekom Albania. Think about Romania and other markets. This is a clear commitment that we do not find an impossible game. We are trying to focus on fixing a structural issue, and if we can't, we are even willing to exit markets. On top of that, maybe the biggest news for today, we are clearly committing to get the majority in the U.S. within the time frame which we have laid out. Our voting proxies will expire in 2024, until then, we will make sure that we have a clear ownership of 50% and above in the U.S. environment. The U.S. is part of our story, is part of our footprint. We are the trans-Atlantic leader in the telco markets. On top of that, we commit to deleverage the company into the investment-grade commitments, which we have always laid out in the last capital markets. This is due to the merger and the integration costs that we are out of it in the U.S. right now. We will come back into this corridor soon, and that is another commitment which we are giving. On top of that, we have waited and we have looked. We have improved the profitability of our Dutch business. We have restructured the market. We pumped partners with Tele2. We have integrated the Simpel business. Now it's the time, after this super value equation, to think about what is the best way to monetize our asset in the Netherlands. That doesn't mean we have to do that to do the other stuff. It's an add-on which we see to optimize our overall portfolio. We will move into the market with this asset right now, checking out what is the best way on the Dutch side. We have improved our profitability on the tower side as well. We have taken the European towers out of the business as well, and we will work on monetizing towers as well in the upcoming future. We will talk about that later on, how we're going to do that, what kind of scenarios we foresee, and why it's now the right timing. It's a kingmaker asset which we have on hand, and I think we think with the current multiples, the current valuations we see in the markets, now it's the right time to understand what we can do with this asset in the best manner. These two pillars result into outstanding profitability. To be very clear, our focus is not anymore to compare ourselves with Vodafone, Orange, or Telefónica. They're anyhow focusing on free cash flow and other KPIs. Our industry, fast-moving consumer goods. This is areas like Henkel and others who are delivering constant earnings per share increases in their business. That's the peer group where we want to benchmark ourselves. Therefore, we have changed our logic from a free cash flow logic, a full consolidated free cash flow number, which doesn't give you an indication about what we are able to contribute to the community. We are now focusing on the earnings per share as the main KPI. We will increase our earnings per share from €1.10 to above €1.75 in the upcoming three years. This is the basis for the dividend accretion you will get from Deutsche Telekom. The basis of that one is that we are willing to contribute between 40%-60% of the adjusted earnings per share into your direction. This is, by the way, if you benchmark yourself with other industries, I think this is a very fair value contribution. On top of that, it gives us a leeway to further increase the dividends of Deutsche Telekom in the upcoming years. That said, we know that you need a floor. You need a kind of interest rate for the huge investments you have taken with us on the journey, and therefore we guarantee a floor of EUR 0.60 as a minimum. This is the story lining of our Capital Markets Day today. Now, quickly going into a review, and I know you know our numbers, but we are proud about what we have achieved. Therefore, this is not an accident. I think it was the consequence of our very focused strategy. We didn't change our strategy over the last years. We amended it here and there, but in principle, we kept pace on one direction, and that made us strong. We didn't deviate. We didn't expand it outside of our footprint. We didn't make adventures into the over-the-top business models, nor we did it into the content world. We really focused on our network technology as the centerpiece of what we had. We focused on the convergence, which was for us really a big gain of revenue in the past. We were very much focusing on the IP migration and the digitization of our service so far. This based into outstanding service capabilities plus a business class, which is where we enable our customers to digitize their service around the connectivity piece. Reducing the cost, we overachieved our cost commitment from the last Capital Markets Day, and we simplified, digitized, and accelerated our services within the company. These are in a nutshell, the numbers. We grow on both sides of the Atlantic, 3% on a CAGR in Europe, 9% on an organic CAGR in the U.S. All the business are in growth mode. We invested a lot in sustainable growth momentum. You see that René Obermann, he was investing in Germany EUR 3.3 billion to EUR 3.6 billion. We changed that immediately. We have invested around EUR 5 billion, EUR 5.5 billion in the area of Germany alone, EUR 7.5 billion on the European space. We have constantly grown this to gain an advantage towards our competition. On top of that, we had the U.S. investments into a leading mobile infrastructure. These two years are reflecting the merger integration. Perspectively, this will shrink. The integration cost is worth doing. Our free cash flow, at the same time, we are even able to grow from EUR 5.5 billion to EUR 6.3 billion, including the merger costs here, or EUR 8 billion, if you look forward to our guidance which we have laid out. A great story going forward. Now we go from EUR 8 billion to EUR 18 billion. With this, we were able to perform better on infrastructure than our competition. This is the outcome of it. We gain market share in every region where we are operating. We have grown in Germany by 2.4% on mobile postpaid customers, 1.8% in the European area, 29% in the U.S., in the Netherlands by 25%. Wherever we were able to invest, we were able to gain new customer momentum, which was the basis for the growth we were able to show. The year story is well aware to everybody here in this audience. We have more than 100 million customers on branded services. We have a market cap of EUR 165 billion. By the way, we increased our value seven times over the last four years, EUR 68.4 billion of revenues and an outstanding position, especially of the mid-band spectrum. The value creation is I think the biggest value creation ever seen in a merger in the telecommunication history at Deutsche Telekom. Going forward, I think there is more to understand what is driving us. The first thing is cleaning the garage. I'd like to start, and you maybe have already forgotten that, we had a EUR 9.6 billion arbitration risk coming from the Toll Collect, something we inherited from the history. We were able to settle that for a cost of EUR 550 million. Done. We divested Telekom Albania and we even divested our fixed line business in Romania, markets where we believed structurally we had no way to win perspectively. We have created new growth areas with the sixth mobile integration of our Liberty business in Austria, a EUR 1.8 billion cash acquisition. We are ahead of facilities, we are ahead of our market shares in this region. I can call this merger already a success today. Turnaround in the Netherlands, an outstanding story. We are faced by integrating our partner Tele2 with a share deal into our business. Consolidating Simpel over the last years, creating a new Un-carrier momentum in the market with a market share gain never seen before. This business has more than doubled its position since the difficult times when we started. We carefully separated our tower business, not only in Germany, but as well in the European operations. We built a company which has 55,000 towers and is by definition the second biggest tower company in Europe. We are the kingmaker because everybody is putting his chess figures on the game, but nobody has so far consolidated these industries. With us, somebody can really create the winner. On top of that, we have managed the Dutch portfolio together with Cellnex, which gives us a leeway to create money outside of the balance sheet for infrastructure investments for Europe. We said no. Maybe saying no is more important to all the good stories which I just have crafted. To stay focused was very important. There were a lot of, let's say, kind of things which sounded attractive. Verizon went into the adventure with Yahoo and alike. AT&T went into the adventure with WarnerMedia and alike. Telefónica went into a EUR 3 billion investment for football rights for 3 years, and so on. We said no to all of this outside business opportunities where most of the people lost EUR billions. We stayed focused on our connectivity plus strategy, and I think this is what we call put your money where your mouth is than rather trying to build empires. This is the consequence of all of this. Revenue growth from EUR 75 billion to more than EUR 109 billion of today. This is a CAGR organically of 3%, but it's overall a growth of 10%. We grew our EBITDA by 14%, organically by 6%. We grew our cash flow by organically 14%, 10% overall. These are all achievements which were higher than our originally committed targets which we laid out at our last Capital Markets Day. Thank you for that, guys. You gave us a higher multiple. You contributed more trust into us over the past. We highly appreciate that, and we know that our multiples are a little bit higher than to the others. We have created 40.5% more value while Telefónica, Orange, and Vodafone, they all lost market cap during this season. This is, I think for me, the biggest outcome. If you look to the numbers, I was just reading them up before I came down here. Since I'm a CEO, we have created 84% attrition, which is a total value of EUR 46 billion. While at the same time, Vodafone lost 13.4% and Telefónica lost 50.6%. I think, when it comes to results day, I feel pretty okayish. The problem with the results day is nothing is guaranteed. The more results you have, the bigger the risk is you fail. Therefore, I think we have to move on with the changes we are doing. This is already part of the journey which we have started. Our teams are working agile now. We are much more digital than we ever were. 30% of our workforce of today is already working in an agile environment. 300 scrum masters and product owners running these projects. We became very diverse and international all the time. I'm not talking about our board, which has 40% women ratio. My board here, my team, which is executive, where we have not only 30% women ratio, but even we have four nationalities. We are quite diverse in the way how we are organizing ourselves. More than 25% of all the new hires in Germany are international people. This company really became an international footprint trying to create best of breed of the world. Remember last time I said, we want to be like FC Bayern Munich. We want to have, let's say, a very solid German foundation about our German engineering piece, but we want to allocate a lot of international people, the best players of the world, into our team to play Champions League. Catching the youngsters. We have started new advertising campaigns with Billie Eilish and others because the customer of today might not be the customer of the future. There will be a next generation coming who should appreciate our brand the same way as the others are doing. We have created a big footprint around sustainability and about ethical standards, and we have a very strong stand in the political arena, especially in Europe, where we are heard with the needs. I think this is very important, and we go into that one even more. The last one is, for me, the most important piece. It's something you never see. You always see the CEO, you see Christian, you see some of the Board members, and you think you understand the company. Sorry, guys. You don't. You only understand the company if you're going down to earth, going down into the operations of these people. If you're going down to the service people who are going out to the customers on a single day. If you go into our shops. If you go down into the organizational piece. These are the drivers of the change and the transformation of our company. We were able to change the thinking, the way how they act, the way how they constantly perform into one direction significantly over the last years. 85% of our employees say we like to work for Deutsche Telekom. More than 80% of the people say we recommend Deutsche Telekom as an employer. More than 80% think our brand is something unique. We have just a lot of grassroots initiatives in this company. 200 brand ambassadors. They're just sitting there and always communicating about Magenta, talking about T, and talking about our products. Think about if 200,000 people constantly are proud about what they're doing. Think about the momentum they can create with other customers. This gives confidence to customers if the employees believe in what we are doing. We have green pioneers all over the company who are caring about sustainability on the shop floor. We have a lot of agile activities. Think about design thinking. I never asked for design thinking in the company, but suddenly it grew like mushrooms everywhere, design thinking teams on creating a new way for developing products and services. This is, I think, even stronger than all, let's say, the strategic elements which I just described. This is the outcome. These were the commitments. This is, let's say, what we achieved. Please have a look to this one, and I can tell you they're almost all green. I put two on yellow because the merger costs and the dividend commitment which we have given were a little bit higher. We said if we are digesting this super merger with Sprint, we couldn't plan that. It was unforeseeable whether we deliver on it. We had to cut it to EUR 0.60, by the way, which is more than EUR 0.50 we said originally. This is at least the only thing where I think we have not delivered or over-delivered over the promises of our last Capital Markets Day. This brings me to a totally different topic. If you are grabbing sand and trying to keep it in your hand, it will disappear. You cannot hold it. It will get less and less and less. You constantly have to grab and grab and grab new sand. This industry is changing dramatically. As an industry, telcos are at the center of the tsunami. The industry is expecting that our industry is accelerating as well. On top of that, this landscape is changing dramatically when it comes to the players which are new in the field of telecommunication service. Just think about the over-the-top players. Just think about the service providers who are changing their business models. I want to spend a little bit more time not talking about the next Horizon One issue. I just want to talk with you a little bit, what is our vision for 2030? How does Deutsche Telekom might look like in 2030? How can Deutsche Telekom be successful in 2030, knowing that there is still a long way to go? We have to prepare the future now if we don't want to miss it on a long-term perspective. I think we are more and more talking about the next quarter, but we should always keep in mind why are we doing things. Therefore, let me deep dive a little bit into a long-term perspective. Welcome to 2030. Everything is connected. Humans, things, the entire world. Our ways of living will change. People know that their behavior in the next 15 years will decide what the world in 100 years will look like. Consumer behavior and business conduct will change. People will more and more shop on their beliefs and values, and saving the planet might become the top purchase criteria. Sharing will be the new owning, as access to things like cars or houses will matter more than ownership. Companies will change their value chains to reflect this. Technology will be omnipresent. The digital and real worlds will begin to merge into one. Physical objects and processes in a manufacturing plant will be replicated into a digital twin. Going to the office might mean putting on your VR glasses. Spatial computing and smart surroundings begin to supplant smartphones. Driving a car by yourself could begin to look strange, and all that has one common denominator: It is enabled by us, by connectivity. The new oxygen in 2030. Connectivity is now a human right and determines our communication behavior. You are going to be the ones which breach the digital divide. Technological development now needs to be more value-based. We have a responsibility to implement ethics in technologies and make them available to everyone. This wild west in the internet has to get regulated. People will judge companies more on their purpose, on their ethical behavior. In everything we develop and create, it must always be about the human beings, the individual across generations. There will be a digital identity for each of us. We need it for being authorized. We need it even for buying things on the network. In 2030, products are even more customized to the individual. The technology around us knows our preferences. Our digital identity unfolds new possibilities but also offers more room for surveillance. A variety of different networks will coordinate comprehensive connectivity. At the same time, the requirements for connectivity have changed. We have a huge customer base where the demand for high-speed data and large volumes of data is growing, and it's growing really, really fast. We have the ability to serve their needs, building a high-quality fiber and 5G network. With worldwide universal connectivity at all times, all networks are interconnected. This network of networks needs to be orchestrated. We have to start today and not rest on our achievements of the recent years. It's time to build to stay leading. I think we have a good attitude. We have a lot of self-confidence in what we're doing, and from this, we have a good starting point to do the things in the right way. It's time to build something new. It's time that we are thinking about the future we want to leave behind for the next generation. Talking about 2030, one is for sure clear: Connectivity is a human right. Connectivity is expected everywhere, and therefore, Deutsche Telekom's business is at the centerpiece of this expectation. Now, I cannot give you all, let's say, elements of what we foresee as trends in this environment. Therefore, I'm trying to reduce it to five major trends which we have to anticipate if we think about a successful telecom business in the future. I'd like to separate into the B2C, the B2B area, into the ESG, and the purpose issue around the network and about the services which we have to deliver in this regard. The first paradigm is we will go from a pure connectivity provider, even in a siloed way, into somebody who is enabling different customer use cases with different connectivity pieces. On the B2B side, we will go from dedicated services like MPLS, like voice, into more software-driven enterprise solutions with embedded connectivity. In the ESG world, we will face customers choosing, let's say, products and brands with their feet from a kind of ESG as a hygiene factor to companies who are able to differentiate with ESG criteria. We will deliver, and we will see network of networks. There will be the monolithic incumbent who's providing all kind of connectivities today. He will in the future be an orchestrator of infrastructures, even from third parties. What we see, we will see a softwarization of the network in the way how they are organized. They will be disaggregated, they will be cloud-based, cloud-native, and microservices will enable different use cases in these environments. The prerequisites have to be organized. It will not be any kind of vertical silo as a telco operator is working today. Let's go a little bit deeper into this storyline. Connectivity everywhere is something which is obvious to us, especially after this corona crisis. We will have a mobile world, and we will have a kind of stationary world in our offices and in our living environments. There will be all kind of devices which has to get connected to the infrastructure. There will be at home all the kind of connectivities, a lot of data flow in the home environment, which has to get organized in a kind of service way. Data streams, customer ID, this all has to be organized in a way that it's working, functioning, and is affordable for the clients. A mesh router, for instance, is already a centerpiece for your home living where all the different devices might easily get connected. On top of that, there will be new forms of connectivity. We call that embedded connectivity. The principle is always the same, always best connected. Wherever you are, independent whether Deutsche Telekom is there with their own infrastructure, yes or no We have to make sure that customers are always best connected. We buy it, we use it, we integrate it. It should be always super secure. If it's not secure, we get the blame for that one. It has to be modular because customers don't want to buy the super product. They want to buy a tailored product which is fitting to the needs of the specific use case they are organizing. Take the consumer IoT world. You do not want to buy global connectivity for voice if you just need an IoT device. Think about mobile gaming. You need low latencies in specific. You do not need the full-fledged service. Take the 8K conference systems, which we are all witnessing during these times, more or less 4K today, but 8K conferences will have a huge data demand in a stationary use case. We have to tailor the infrastructure in a way that we can monetize this different service in a kind of context-aware way, but as well in a kind of dynamic way, because customers don't want to have the service forever for a 24-month contract. They want to have it when they're using the infrastructure. This always best connectivity means tailored connectivity, and that is something which we foresee in the future. Services everywhere and embedded connectivity, context-aware and dynamic. On the B2B front, we will go away from the classical siloed approach. We deliver a voice service for B2B customers, we deliver a data service, we have messaging services. This connectivity piece will get embedded into UC or enterprise communication and collaboration tools. We call that ECC. You will buy maybe your Microsoft package with an embedded connectivity already in the future. This requires a lot of changes in the way how we organize, but even if we sell connectivity in the communication piece. Security today is a firewall which is covering connectivity on an end-to-end basis in the network. In the future, we see that zero trust networks, secure access service edge networks, will deliver every application in a different security functionality. This is a big expectation towards telcos to organize that all different elements of a data use in the business environment is protected in a special way. What we're going to see in the mobile space in specific is we will see dedicated network slices. Interestingly, nobody's talking anymore about the network slicing, but 5G was always the biggest advantage of it, apart from the bandwidth, was always the capability of slicing in a dynamic way parts of that infrastructure. We foresee that for the different use cases in IoT, in the B2B space, that we are able to deliver sliced infrastructure for these customers going forward. This creates new opportunities of growth for telecom operators if you differentiate not between one or two products, but between a variety of use cases in this telecommunication space. The third one is ESG. By the way, we have started with ESG maybe a little bit late, I have to admit, but as we learned how important it gets for our customers. Today, already 46% of customers we know they're looking how purposeful and how reliable and how consequent a company is acting in their societal behavior. Therefore, companies will definitely be chosen by the way how they adapt to the social norms going forward. There will be a significant issue coming from the CO2 emission reduction, which our industry is creating and, by the way, is able to reduce. Low carbon economy. The question about our value chains and supply chains is something which is very important. The telecom operators are the ones who are helping all other industries to be more efficient. Think about an autonomous car. By the way, 1 terabyte of data within 8 hours of an autonomous car is being generated over the infrastructure. We have to manage that. Think about car sharing. Think about the capability of collaboration tools. Less travel. Think about the cloud of especially the midsize companies who are not in the cloud environment already today. These companies can save significant CO2 emission by just using telecommunication services. The telecom operator is the biggest enabler for the CO2 emission in the digital world. The factor which is calculated for that one is one to seven CO2 reduction through telecommunication service in the upcoming future. We are at the center of this ESG movement if we are driving it right, and if we are driving it in a way that we are accepted. The fourth development is the network. The network, and I have to maybe disappoint you, don't believe that the consolidation is bringing this industry to less networks. We foresee significantly more networks in the future. We foresee a much higher complexity in the network and the ownership of the networks going forward than it is today. There will be a multifold of different infrastructure who is providing this new connectivity which is required from the customers on all angles. There will be a physical infrastructure which is coming from satellites. It will come from multi-regional fiber cores like CityFibre or KKR here in Germany. There will be the local fiber cores who are providing infrastructure, take the NetCologne or others. There will be alternative networks like Amazon Mesh Network, Project Kuiper. There will be Sidewalk, take Georion, another Wi-Fi network mesh infrastructure, which are providing connectivity, especially in dense areas. There will be campus networks which are existing in the shop floor of big manufacturing plants or ports or other equations. Spectrum being used for dedicated infrastructures, and there will be even some kind of wholesale businesses who are providing specific services in the IoT space or tower cores who are providing just infrastructure, passive infrastructure in the ecosystem. Think for a moment. You can compete and try, okay, we are better than Starlink on the satellite side, or we compete, is this the right approach? We doubt that. We believe that the advantage lays in a kind of network orchestration layer. We believe what is happening in the content world is happening in the network world as well. The one who is able to orchestrate different technologies, infrastructures they might not own but provide it to the end customers, these are the ones who are succeeding perspectively. The network orchestrator is the one who is winning in this field. This sounds easy, but from a technical perspective, it's very complicated. How can you organize a satellite into a mobile network or into a fixed-line infrastructure? How can you bill it? How can you organize the quality of service? All the things I laid out further. We have to see who is first on building the network of networks. Who is first to enable this software layer? We have a super advantage because we have accomplished our IP migration, so these services already are able to be steered in a software world. There are new infrastructures which we will not own, which we have to embrace and integrate into our ecosystem. With this, we have a bigger reach. With this, we have a bigger market, and with a bigger market, we have a bigger potential to sell our products towards the customer. On top of that, the question is how we embrace communication services like Cisco, like Apple, like Microsoft into our infrastructure. We do not want to develop that on our own. We want to build strategic partnerships, but we have to build the APIs, the interfaces to these services in the right manner. The telco industry will go from a monolithic incumbent to an orchestrator to a network of networks. My last thing is the software layer, which is enabling the services. Claudia will talk about that in more detail because we are already on that journey. You have again this infrastructure which I laid out on the previous chart. I said there is this element of the orchestration which we have and which we have to organize in a cloud native, in a kind of software-driven environment. On top of it, we need tools who are making the service intelligent, unified data and analytic engine services. Product services and development take the Home OS environment which is easily connected to the different infrastructures. Embedded security, as I have laid it out, Platform-based services which are needed to bill customers, to identify customers, to authorize customers and the like. This is the world which we have to build. We have to build telco as a platform service. This is the next evolution after the IP migration, and that is something which I'm expecting from the NatCos to do this in a consolidated, in a synergistic way that we can scale. On top of that, microservices and APIs enable the customer use cases because we will not develop the use cases our own. Some maybe, but most of them are developed in the ecosystem of the over-the-tops. This is why they're called over-the-tops and this is something where we have to make sure that it's easy to connect. It's another form of the Steckerleiste. Maybe some of you remind the story, the plugin which we had already in earlier strategies. This is our 2030 view. This is, let's say, a thing which we should think about. We should not do some step after another. We should have an orientation. We should have a lighthouse in which this industry might go and where we position ourselves already today. That is our strategy today. This is what we foresee as paradigms for 2030, and this is what we do now to get there. The headlines of all presentations of my colleagues are around from connectivity to customer experience by making and turning customers into fans, creating experience around products and services which are unique. From dedicated to software-driven enterprise solutions, we want to become the digital enabler for our B2B customers on their needs which they have in collaboration and communication, in IoT, and in the cloud space. People society from ESG as a hygiene factor to ESG as a differentiator. Green Magenta and Good Magenta, our ethical expectations. Networks from monolithic incumbent to a network of orchestrator. We build, orchestrate, and differentiate. This is already something where our architectural logic is working on. Digitization from vertical solutions to telco-as-a-platform to cloud-native API environmental. The prerequisite for this is we digitize and digitize, and digitize everything that we have. Wherever we can digitize, we should do that because this will enable a cloud-native API-based architecture, which we foresee for the long-term future. Coming into the commitments and coming into the next years, the next three years, what we want to achieve. We will have deep dives on each of these topics. Let me quickly go through that. We want to play our differentiation in the convergence piece in Europe. We are strong at it, and we foresee that the FMC penetration in our customer base has a big opportunity to gain more momentum. Best connectivity experience, embracing other technologies, seamless interplay between them, and innovations beyond the core for the services is one thing. Best mobile experience. We always want to have the best infrastructure on mobile and differentiated service. We want to increase, as an example, our first-call contact resolution from 55 to more than 62% in Germany. By the way, we are not talking about idle times. We're not talking about call handling times. We are not talking about deadline compliance. We just talk about the way solve the issue for the customers. We're doing that already today, stealing with pride from the U.S., which is called the TEX, the Team of Experts, which is now embedded and implemented across all the operations we are running. A personalized offline and digital service, first time right, and very much about Heimnetz, so the connectivity at home, which will enable a seamless and interruptible free service. Our commitment, 10 million households in FMC. Our commitment, industry-leading growth in branded post-paid customers. We want to win market share in this regard. Extended all-time high customer satisfaction. We want to increase our customer satisfaction, our net promoter scores, beyond the level which we have already achieved in all areas where we're operating and reinnovate the brand under the idea of digital optimism, believing into a future which is getting better for our services. Coming to the B2B. On the B2B, we see two big paradigm shifts short term. The first one is the SD-WAN development from MPLS dedicated lines to an SD-WAN service, which is more flexible, more affordable for our clients and customers. We see a growth of 36% in this environment. We see this enterprise communication and collaboration, where we see huge tailwind, where end customers are spending a lot. The hybrid way of working is the way of the future, and the ECC is the tool which is enabling this. This is what we're working on, enterprise networks, IoT and security solutions, cloud and digital. Our commitment going forward is we're going to see a CAGR growth of 2% in the B2B sector. I'm very irritated when I see all my telecommunication players around me always talk about negatives. They are shrinking in that environment. We are growing. We are growing already today, and we believe we can grow at least with a CAGR of 2% in this environment in Germany and in Europe. U.S., we will double. We will double our B2B market share from 10% to 20% because we have the credibility, because we have, for the first time, a better network than AT&T and Verizon at affordable prices, and this makes us strong to gain market share of these guys. We will double our IoT revenues and even our ARPU in this area. A big enabler, and I can talk about 100,000 of SIM cards which we recently gained with car manufacturers and alike, which is enabling IoT connectivity to cars. By the way, the chipset shortage is something which is good for us because every chipset is producing data which has to get allocated in the infrastructure. Therefore, we are in the play. In public cloud, we are expecting that our public cloud servicing is growing by 50%. Coming to the field of ESG. I think we can skip directly to the slide. It is not working. Go ahead. We can go to the slide. We have built a new team, a stronger team for all the ESG topics which we have. We even have created a new ambition level for our ESG targets. The first thing is 100% of electricity coming from renewables already this year. Every kind of energy we are using in our footprint is already today on 100% renewable energy. This is already, I think, a big step, and it cost us EUR millions, double-digit EUR millions to get there, but I think it is worth doing it to have a green network. The next step, which is new. On scope one and two, we want to, let's say, have a net zero own emission by 2025. You might question, what are you talking? This is electricity, but we still have a fleet. We still have buildings who are consuming energy, in this regard, oil and other things. We are now working how we can reduce even this emission to zero. Let's say that's the scope and our commitments now to 2025. We have up and downstream energy consumption, the way how our technology is getting produced, handsets, routers, all this kind of stuff. We have the end customers consuming all the products of Deutsche Telekom. We want to make sure that the net zero emission is achieved for this value chain at least by 2040, which is at least significantly ahead about, let's say, taxonomy and the targets of the European Commission and others. This is the scope 3 where we're working on. Third, increase in the energy efficiency in our network. Every single discussion should be not only saying, "By the way, we help you to reduce your energy consumption," we should even think about how we can gain productivity in the way how we are consuming energy in this environment. Claudia will talk about how she can do this in the technology field later on. Maintain an all-time high customer and employee satisfaction. Our people should be proud. Our people should have a purpose. Our people should understand why they're working every day for Deutsche Telekom. We have a big purpose, as I've laid it out already. We are the enabler for future growth, and therefore, we should keep this momentum. That people are proud about the team, proud about Magenta, proud about what we are doing. Therefore, having almost 90% of the people being committed, I think this is unique if I see the benchmark of other industries. Then on top of that, we have ESG initiatives in the recycling field. We have said every board member, perspectively short-term, perspectively every leader of this company should have ESG target in his long-term incentive scheme. It's not only that we are committing to something, we will be paid by the fulfillment of our ESG targets, which I'm just describing. The last thing is, apart from the green Magenta initiatives, we have a good Magenta initiatives. Good Magenta is what are we doing about digital literacy? What are we doing about democratic values in a digital society? What are we doing about hate speech? What are we doing about all these escalations which are taking place around us with regard to fake news, deepfakes, and other things? We are fighting them. We want to stand as a voice in this circumstance. We are by far the leading European telco. Therefore, we have a duty to tackle these issues. We just launched a campaign together with Billie Eilish, which was seen 340 million times on the internet from the next generation. It has already impact, but this is definitely not one session issue. It will be a campaign, which we're going to create even beyond today. That brings me to the core of the core, our network. What you see here is today we have, as an example, our fiber situation in Germany. 5% is our FTTH position, 83% is FTTC, and then we have still some ADSL. We have 100% more or less ownership of this kind of services. We're going to change that, and we're in the middle of this transformation. 60%, 70% of the infrastructure we will own, and it will be fiber. We have made a clear commitment that we are now developing a significant acceleration on the fiber build-out in Germany. We had 600,000 last year. This year, we're going to 1.3 million, 1.4 million. The year after to 2.1 million, and then we go to 2.5 million households on an annual basis as a run rate of the infrastructure. This is what we do as owners of the infrastructure. There will be as well external money going into networks, which we embrace whole by, which is extending our footprint beyond where we are today. On reciprocal terms, reciprocity is the name of the game. Why should we overbuild somebody? If they have built already fiber, why can't we embrace them into our infrastructure? Third party will help us to have a big footprint. You see, we will keep our retail market share. We will keep the same position as we have it today, at least. The commitment which we are giving is Germany, we will quadruple the fiber to the home output we will attack. We will not be only in the outskirts. We will not be there where only subsidized monies are available. We have announced Berlin, Düsseldorf, Hamburg, Frankfurt already. I would love to see us being strong in Munich as well, because that's a market where we want to, let's say, play a significantly role in the city. There are other markets to come soon. We will have additional footprint in Europe. Today, Europe is already at a run rate of 1.1 million fiber households on an annual basis. We want to keep that, even accelerate this output effort, that we are the leading fiber co in Europe. That's definitely our ambition, and therefore, we have allocated money to this one. It's highly profitable because it's easier, it's cheaper to build an FTTH structure in these regions. This will bring us to an outstanding leadership position, not only on fiber, but as well on the 5G area. I don't want to repeat that. You know that. There's no question. Deutsche Telekom will always lead the mobile space. This is our ambition. We will win every network test. By the way, just this morning, Opensignal published their test. We have a 30% advantage to our follower, which is Vodafone. We are really, let's say, ahead of our competition. I'm very proud about our technicians who make that possible and in the financial envelope which we have laid out. By the end of this year, we will have 90% 5G coverage already in Germany. That shows you the advantage of what we have created in this environment. In the U.S., I think you know the story, and Mike will talk about that one as well later. Which brings me already to the end, which is a very important piece. Digitize. I always say to the company, "If you do not understand the strategy, if you do not know what to do, if you do not have a leader who tells you what to do, digitize." There is always place where we can improve. Three areas of digitization: customer frontline, boost the e-sales and the digital reach. We want to have one unique app with a high usage. Service automation and remote provisioning. We are running the biggest bot farm in telco industries, 3,000 bots operating in our network already today, including predictive and proactive maintenance, because the more proactive we are, the less complaints, the less costs we are creating in the system. Network and IT. Digitize. The way of Open RAN, the disaggregation of our network. The way of running network from a software perspective, then rather having it in a very decentralized way is the next thing, and this in a kind of agile and cloud-native IT. Our IT has significantly improved over the last years. The time to market has come down to numbers which were even not close to our expectation when we had the last Capital Markets Day. We have the operations. Everything internally has to get flattenized. Everything has to get automized in a way. We should not bother our people with routines which we can softwareize. Therefore, there's a big boost for internal efficiency via digitization, and we commit to another EUR 1.2 billion of savings in the organization here in Europe for further productivity gains. The ambitions, 30% e-sales shares, 25%-30% e-sales in Europe, two months time to market in Germany and one month time to market in Europe, which makes us much more flexible, much quicker in responding to our competition, and even our testing of new products is easier to handle. This is the last thing on the portfolio, the capital allocation. We want to achieve transatlantic leadership by creating more synergies in our footprint. Due to the fact that everything's going in software, we can jointly work much better together, and we're doing that already today. Take our TV platform, which is now harmonized around the whole European footprint. Think about the mesh router and the router development. It's harmonized around Europe and beyond that. We have a lot of areas where we can harmonize and where we can generate synergies within the footprint of the biggest telco in the Western Hemisphere. Being in triple-A market is by definition advantage. We have one regulatory or more, less harmonized regulatory environment with less risks, which helps us a lot. Number 1 in Europe and soon number 1 in the U.S. This is our ambition, right? This is leading. Build once and scale, I made that already. The OneApp is another example on how we are driving it. We have just joined and integrated the team on this field that this development is just taking place out of one hand. A repeatable playbook. Leverage the best practice around the footprint. This is not only for operations, it is as well in the way how we do portfolio and M&A. Always trying opportunities. We do not say we are selling or we are buying. We are even trying to do forms outside of the balance sheet. We are trying to do things that we have maybe even minority shareholders in some areas to create upsides at a later stage. That is the way how we are driving things. This repeatable playbook, which we have learned, is even stronger because we have one single business model in our organization. The commitment, we want to increase our return on capital employed for the German operation by 50%. We want to double the B2B market share in the U.S. We want to scale the OneApp beyond all the footprint, and we want to have 80% of the router base with an own operating system. By the way, even the Home OS which we are developing, which is bringing all the home services together, is something which we are launching soon. More to come on the product events. This was my journey, in a nutshell, about what we are doing. We are very, very ambitious in how we see the future. The headline, as I said, it is acceleration. Acceleration. Revenues, 1%-2%. Okay, you know that number, but nobody's interested about revenues from handsets. Service revenue matters. The utilization of the infrastructure matters. 3%-4% growth. We believe in a significant growth on the service revenue side. EBITDA, the group is going to grow by 3%-5%. This is 2% more than what we said last time. Adjusted EBITDA grows by 5%-6%. This is significantly more than what we said last time. Free cash flow today, EUR 8 billion, 2024 beyond EUR 18 billion. Another EUR 10 billion in the year 2024 on the cash flow which we are generating today. Ex U.S., we're going to bring it to the EUR 4 billion here. Adjusted EPS, we go to EUR 1.65, the ROSI should be beyond 6.5%. The CapEx envelope is designed ex U.S. EUR 8.2 billion, is the vicinity on how we are investing, indirect costs should get reduced by EUR 1.2 billion. The shareholder remuneration based on the EPS with a payout ratio of 40%-60%, which gives the perspective to grow our dividend significantly over the next years. Look, I think Deutsche Telekom is not an accident. The strategy is something which we're working very hard on it. It is supported from 250,000 people in this organization. I commit that we, again, will deliver of what we have promised. We see the future as a growth future. We see us positioned very well from a portfolio and the markets we are operating. We have a differentiator, which is around our infrastructure. We have an idea about how we are developing this company towards a new layout for the generation 2030. With this, I'm very optimistic that we will create more value than the other Telcos. Thank you very much for listening. Thank you, Tim. Thanks for setting this framework for us. Maybe you can join me now for the Q&A. We don't have too much time for the Q&A now, but we have Tim back on stage tomorrow after the last session. Let's have a couple of questions right now. I can see already Polo Tang from UBS there on the Webex. Polo, maybe let me start with you. Can we have your question, please? Yeah. Hi, thanks for taking the question, and thanks for the very upbeat presentation. I have one question, which is just on shareholder returns and the $60 billion buyback at T-Mobile US. It's very clear that you want to get to a 50% shareholding in T-Mobile US. Once you reach a 50% shareholding, are you likely to participate in the T-Mobile US buyback program? If so, what would you do with the proceeds? Okay, Polo, thank you. The first thing is, first step up is the second. The first step is we have a big commitment towards our build-out program in Germany on fiber and on 5G. On top of that, we want to achieve this majority position, and we haven't taken any decision on whether we will take part of that program or not. I would expect us having a 50% plus position that we then will more think about how we can do the allocation of that money, whether we do debt reduction or other things. I would not see us immediately, let's say, participating and extending it. I do not see an immediate value out of that. That would be my spontaneous reaction of today. Now taking first 51 and then letting the whole equation being reviewed again. Very good. Thank you, Polo. The next question. I can see you, Andrew, at Goldman. Hi, Andrew. From the trading floor, I can see. That's good. Okay. Yes. Can we have your question, please? Yeah. Hi, Tim. It's great to see your rocky targets today, which ultimately come down to growth and costs. When we saw you in Bonn a couple of years ago, the main question mark on that was probably on sustainable growth, and it was actually an upbeat thing to hear about a telco talking about growth. You've since delivered on that nicely, and your guidance from here is more credible as a result. Right now, there's a heightened uncertainty in the sector, on what you describe as the investment you put into the wheel. I wondered if you could talk a bit more about how much visibility and certainty you have on CapEx intensity, and also how you flex for the spectrum that fits into that. Just to give us some confidence that we don't get a CapEx warning over the next couple of years like we've seen across the space over the past few weeks and months. Thank you. I think the uncertainty at the last Capital Market was significantly higher than it is today. Last time, we had the unclear position on the U.S. Last time, we were not clear how to play the 4G game and extend our footprint to where we are today. Last time, we had this big auctions AWS in front of us in the U.S. Last time, we had just the announcement around the Vodafone integration of fixed line and mobile services here in Germany and the competitive challenges we were facing. Last time, we had portfolio assets, which were not running operationally well, like the Netherlands. Today, I can tell you I'm sitting in a portfolio which is more or less fixed in every regard. We're still working on T-Systems. We can talk about that. From a total equation, that is, for me, from an outlook perspective, the most uncertain one, because I do not know how these markets are recovering after COVID and how much of that we are participating in that growth. I see that. The second one is, I do not see super significant auctions coming. We always had this kind of buckets in our planning and anticipating big auctions. This time, looking to this one, it's much more foreseeable what's coming. This is millimeter wave bands which are coming. There are some European markets with 5G services coming, which are not that big. I do not see significant big auctions on the horizon which will eat up into our balance sheet. On top of that, our position. Think about our position in the U.S. We are ahead of our competition with 5G services and build-out. We have a very clear view that what we need as CapEx to stay ahead and what is needed there in the market environment. Look, I'm very confident to the German build-out, because this is even a regulatory approach. In the past, people were saying, "We expect that you build a new monopoly." We don't. We will make safe that we will protect our market share, at least. I said that. We will have a decent share of wholesale, because the deals are already made in the vicinity of EUR 17 billion, Germany as an example. We have a decent wholesale share on top of that one. But we will not build the whole country. There will be others doing it. Why should I overbuild others if these guys are opening up their infrastructure to us and we can sell Magenta services as well in this region? This is the way going forward, and that keeps me more relaxed than this attitude of saying we always, in the fixed line business, have to own a monopoly for the whole country. I think this is a new learning, that we do not have to own whole infrastructure. We have to own the majority. The argument, is it 60? Is it 70? This is, let's say, the pitch which we are doing, that just gives us credibility. Beyond that, we will have a lot of whole buy deals, and therefore we are limited on this exposure. I think it's even a capacity issue. Building now 2.5 million households in Germany, this is a big stretch target for an organization and even for our external service partners. Therefore, look, maybe I'm too optimistic. Challenge me on this one. For me, the perspective is more easier to take than it was four years ago, and that is why we gave you higher numbers. On top of that, we have a better control about the fixed line market in Germany. You see our market share beyond 50% on the net add side. We have no line losses anymore. Even the constant revenue stream we're getting out of this, the growth was around five-ish already, is something which gives me confidence that we are well positioned. Great. Thank you, Andrew. Thank you, Tim. Oh, I can see Akhil. Not at the trading floor, it looks like. Akhil, can we have your question? We have one more, and then we move on to Srini Gopalan. Okay? Akhil. Yeah, great. Thanks very much. It's two very quick ones, hopefully. One is on towers. Tim, you mentioned, as you have before, that you see yourself as the kingmaker when it comes to towers. I just wondered, with the strategic review you're talking about, whether that changes the options you're thinking about. I think in the past you've said you are ruling out an IPO, you are ruling out a disposal. It was more trying to find ways to create incremental value. If you could just maybe talk to whether there are other options now, whether your thinking around that's changed. That's the first one. The second one is, you've talked a lot about the network of networks and this aggregator strategy as Deutsche Telekom going forward. How important is scale to that? When you think about Europe, which remains very fragmented. Do you think that means that as this industry evolves, scale is incrementally important? Do you think cross-border consolidation, therefore, becomes more important, too? Thank you. The first thing is, we have been at the forefront of carving out our towers, and we have, I think, over the last years, very much professionalized the operations in Europe on the tower side. We have increased our EBITDA, just from my mind, EUR 150 million on top of that. Not going to the market with a low performance, but having already, let's say, taking the low-hanging fruits on the services, which will give us a better value. We have seen that even the market contributes, I think it was EUR 6 billion or EUR 8 billion, now it's around EUR 12 billion, value to this thing. They see this value enhancing. We have seen that the Americans have positioned themselves into the European space as well. We have seen Cellnex scaling up their business. We saw the multiples between U.S. and Europe becoming very similar. On top of that, we see that everybody's positioned themselves to become an industry leader in this space. We saw high multiples, beyond 30, on these businesses, and we don't believe that these multiples are going now significantly higher on this one. Now it's the right timing to think about playing in this game, because the fantasy of something organically is more limited. We have now an asset on hand we can play with. We can consider selling the majority. We can sell a piece. Look, I want to send Langheim out there and come home with a fantastic deal. I'm open to every option, to be honest. Open to every option. It has to be a good deal. It has to be a fat and juicy deal for Deutsche Telekom. That is why I think it is now the right timing, where everybody is positioned and nobody is talking about theory. These companies are now built, and the players are there, and there was never so much money in the market. I think this is now the right thing. Look, I hope that we can come soon, coming back to you guys and show that we are doing the right deals here. Thorsten will talk about that one in more detail later on. That is a little piece, the strategic topic. Network of networks. Guys, I think we have to think about the future. Otherwise we will not understand that the telecom companies are long-term positioned. The network of networks and the aggregator strategy is something you have to invest, you have to learn, you have to cooperate with hyperscalers in this case. Are they enemies? Are they frenemies? What role do they play? This is the thing where we have now to start working on. Scale is important because the bigger the aggregator is, the better the economy scales gets in this ecosystem. The more your incremental cost of IT investments are getting lower. Therefore, I think it's important. Who is better positioned in Europe than Deutsche Telekom? Now, compared to the U.S., compared to Asia, we are subscale. Therefore, I'm calling, desperately calling, as a European citizen, for a harmonization for a single market of Europe. We need it to survive. We need it to play a relevant role in this piece perspectively. I'm not driving politics. I know that the single market is still far away. I'm calling for bigger consolidation. Deutsche Telekom is not sitting here and willing to invest cash into buying a company and then integrating it. That is not what we are looking for. I hope that this market is coming into consolidation, that we are creating GBP 200 billion, GBP 300 billion pounders here who are able to create the same economies of scale like other markets. This is the way which is very difficult to predict. Perspectively with the software development, the cross-border consolidation maybe gets more juicy because you have better economies. Look, at that point in time, I can only tell you there is no activity in this regard. Europe is a little bit on the way in this network issue to become more nationalistic due to all the discussions we have in the political landscape. Perspectively, we need a single market for Europe. I cry for that. Thanks, Tim. Thank you. That's very good. We are very short of time now. Usman, great to see you. Let's have a quick question and a quick answer, maybe, so we can have time for Germany and the other subjects as well. Thank you, Usman. Good to see you. Hi, guys. Thank you for the opportunity. It was just going back to the strategic question of telco relationship with hyperscalers, particularly in light of the deal that Dish is doing with Amazon in the U.S. From your overview, it's clear that more and more telco kind of network data will be running on cloud servers, hyperscaler servers. More of the network will be run as software. Again, on commoditized kind of hardware. Through network slicing, I guess you have a situation where hyperscalers can, in theory, run telco networks directly into customer premises. The question was really, how are you, as an organization, managing the potential disintermediation risk. To what extent does the telco kind of connectivity model need to change in order to be able to get more upside from this relationship with hyperscalers and not to be reduced down to just providers of commodity where connectivity were just priced down all the time? Thanks. Look, thank you very much for that good question. It's at the core and I have to be now fast with the very complex question. The thing is you have to manage your dependencies, and there's one dependency, the hyperscalers will not go away. There will be definitely, let's say, service which they're providing and where we can benefit from. We have to bring the physical connectivity and the logical connectivity. We have to bring that together. This is how we make services and quality of service for customers available. This is, I think, the logic. Therefore, we need hyperscalers perspectively. The question is, we should not become dependent on one hyperscaler. This multi-cloud approach is one of the solutions that you're not relying only on one hyperscaler in the way how you cloudify your infrastructure. The second thing is, look the car industry. The car industry is embracing big time Amazon and Microsoft to their services, but they're not losing value chain. They take them as a service provider. This is the way how we think as well about it. We are not building the cloud ourselves. We are not running it. There will be critical pieces which we have to control ourselves. There will be pieces of the network where we leverage our network. Think the housing of edge clouds, I can believe that we do that with hyperscalers together, and then there will be pieces of it. I think the value for us is in the centerpiece which we are having. On the one side, orchestration infrastructures from us and others, and on the other side, having always the access to 260 million customers in our footprint directly, including our B2C relations and B2B relations. For me, the hyperscalers can enable our services, which I laid out earlier, quality of service, different carrier grades and the like in a kind of intelligent way. I do not see them that they really substitute us. I think they will help us to enable this orchestration and the cloud-native approach of our infrastructure, and we will select not only one. We will work with different players together. That's the way how I see the future going forward. Claudia will talk about that tomorrow, hopefully for you in a more clearer way. That is the way which I want to drive. You cannot just ignore them. You have to embrace them, and that is why Dish and Amazon are working together in the U.S., and I think Rakuten is on the same journey. Therefore, we should adapt that. Yes. Thank you, Tim. If you can't beat them, join them. Thanks for this great framework. As you can see, the idea of today is we won't rest on our laurels. On the contrary, we will accelerate. How do we accelerate in Germany? Because it's a great asset. We got the guy from Europe who, formerly Europe, but he's actually already here, running the German business for quite some time. Sorry? He has to accelerate. Yeah, now he will accelerate. He will talk to us how he will do that. I cannot think of anyone better suited for this than Srini. We look forward to now hearing Srini, how we will take Germany to the next level. Thank you. Thank you, Hannes, and guten tag. You can see seven months into the role, my German's already fluent. No, seriously, before I expose my numerous shortcomings with the German language, let me move to talking about the German business. It's my pleasure and honor to spend the next 45 minutes talking to you about where the German business is right now and where we're going. Without further ado, let me jump right into it. Where is the German business right now? I think the German business is in a really solid, good place. We've delivered reliable, predictable financials on the back of solid operations. On all of this, despite the fact that we've gone through a fairly large transformation, one of the biggest that I think any of the incumbents in Europe has gone through, the IP transformation. Which gave us its own headwinds, and I'll talk in more detail about that. Where we are is a really solid foundation, a place that delivers solid financial results, a great experience, a really good brand, and a solid operation. Question is, where do we go from here? Now, this is a question I've been asked often within the organization over the last seven months, and often in German. That leads to one of my favorite German words, beschleunigung, by which we mean acceleration. The vision really, for the next four years, is to take the solid foundation and accelerate from there. What does acceleration mean? Accelerate in terms of building out the networks for the future, accelerate in terms of our revenue across consumer and B2B, but also accelerate in terms of our internal digitization. The combination of all of that creates an acceleration of EBITDA that self-funds the fiber rollout. Last but not least, use all of that accelerated EBITDA, allocate capital well, that it's not just EBITDA, but also return on capital employed that accelerates. It's a story of acceleration built on a solid foundation, which you can see has a lot in parallel with the way Tim was laying out the story for the group as a whole. Let me now dive in a bit into our performance and the solid foundation that I talked about. I'll start with just reflecting on some of the commitments we made in our last Capital Markets Day, and how we've performed against those commitments. The commitments were 2017 to 2021, and the numbers you can see here are our actual reported numbers from 2017 to 2020. As I talk through each of them, I'll also give you a flavor of how 2021 is turning out. Start at the top with mobile service revenue. We committed to a 2% mobile service revenue growth. Our actuals 2017 to 2020 were 1.4%. When you take out the corona effect, it was actually about 2%. As we look at 2021, we're pretty comfortable giving us a tick on mobile service revenue. Talk about fixed service revenue. Here, our landmark strategic decision of actually going down the route of vectoring changed the game for us on broadband. On broadband, we had committed a 3%-4% growth. The reality is we're storming ahead of that, 4.6% delivered till 2020. Quarter one 2021, 6.4% broadband growth. If you look at our EBITDA commitment, we said 2% EBITDA growth. We've delivered 1.9% 2017 to 2020. That despite the headwinds from the IP migration, and I'll talk about them in a little more detail on the next slide. 2020 itself also had the COVID headwinds, so our 2020 EBITDA growth rate was only 1.4%, which brought down our overall growth rate in this period. When you look at Q1 2021, with a lot of the headwinds behind us and some of the headwinds of IP migration turning into tailwinds, you can see the acceleration. We grew at 3.4% in quarter one 2021. Cash, the last of those numbers, we said 4%-5% growth. We've clearly nailed that at 4.8%. Financially, stable, predictable delivery. Let me talk a bit about IP migration, because I mentioned it earlier. Look, we are the only scale incumbent in Europe who's really completed the IP migration. This was a tough journey. What did the IP migration involve? Essentially, swapping out all our legacy infrastructure to put in an all-IP network. Especially with B2B customers, this was also the effective equivalent of cleaning up your back book. We started in 2014, but it really peaked in terms of impact in 2018 and 2019. In 2018, we had 700,000 line losses. In 2019, 800,000. In 2020, 200,000. In 2021, an even lower run rate. The drag of this on revenue was about EUR 100 million a year in 2018 and 2019. It's about 0.5%. It went away largely in 2020. You didn't see it in our results because COVID hit us at the same point. When you start looking at 2021, you are beginning to see the release of that and the tailwinds coming in. Our service revenue, quarter one 2021, grew by 1.7%. The IP migration didn't have headwinds and effects just on revenue. It impacted cost as well. Installations peak, because you've got to physically go there and change out the legacy network. Our installations are now down 30% from peak. Last but not least, this I think would be the most telling factor for the future. The IP migration gave us the ability, and I think we're the only incumbent in Europe who has this ability now, to really build modern, technologically sophisticated products such as SD-X, Enterprise Cloud Communication on top of our all-IP network for our B2B customers. Solid financial delivery in the face of a tough IP migration. How have we achieved all of this? I think the core of a lot of this has been operational excellence. If you look at the chart here, we have seen complaints go down by 66%. A 20-plus% increase in first contact resolution. That's impressive. IT time to market going down from 18 months to three months. Add to that the fact that, and I've now worked in several incumbents, our IT infrastructure is amongst the most stable that I've seen amongst incumbents. What's the payoff of a lot of this? Record levels of customer satisfaction and record lows on churn. Further testament to our strategy of invest in the network, invest in service, good things will happen. That's not just us saying it. You can see we've won most of the awards possible in this space. Solid financials, tough migration handled well, delivery despite that, based on solid operational foundations. I'm going to close off the looking back with a quick sense of our other commitments, specifically the ones I didn't touch on earlier. I'd like to start by highlighting cost. It's a bit of a myth here that you can't take cost out in Germany. We reduced EUR 1 billion in cost across GHS and Telekom Deutschland. We reduced our workforce by about 10,000 people between 2017 and 2020. You can take cost out, you can drive efficiency in Germany. I want to spend a few minutes on the ambers. B2B growth, we said EUR 500 million, we delivered EUR 110. Correcting for Corona, we had about a EUR 240 million impact of Corona, which was mostly lost roaming as well as the big IT deals. We delivered EUR 350 million. I can always stand here and say, yes, IT migration was the rest of it, but cold, hard facts, I think we would have liked to have delivered more on B2B growth, and we'll talk about our plans going forward. The second area of amber I want to spend a few minutes on is fiber rollout. We said we would get to a run rate of 2 million homes per annum. Last year, we delivered 600,000. This year, upwards of 1.2 million. In the last quarter of this year, we will be running at close to 500,000 homes in the quarter, which is about 2 million homes per annum. We'll get there. Truth be told, we would have loved to have got there a little quicker. The last area of amber is then our revenue delivery, where we said we would deliver 1% in growth. Reality, we've delivered flat revenue. Some of that is because of Corona. Without Corona, it would have been 0.4%. I think the more important piece, which is same point Tim made, when you look at service revenue, we actually delivered 0.7%. We chose to let go of some of the lower margin revenue. Still a near miss, an amber rather than a green. That's the scorecard and the state of the past, a really solid foundation. Let's now start talking about our acceleration. I'm going to skip through the first slide on this. This is the slide Tim talked about in terms of the priorities. Our priorities are consistent with the group priorities. Let me dive into the heart of it and talk about acceleration on the network side. Network acceleration, where are we on 5G first? As Tim said as well, we today have 80% coverage on 5G. This blows my mind a bit. I've been in the industry a while. It's rare that you find a case where with a new technology being introduced, one player has twice as much coverage than the next competitor. The task going forward from an acceleration perspective is how do we now really get efficient about 5G deployment? More importantly, how do we monetize it? Let's talk about the fixed line infrastructure. I think what was strategically brilliant was the choice to go down the route of vectoring. What has vectoring given us? Several things. We now cover 83% of the country with vectoring and super vectoring. Our choice of going broad at high speed versus narrow and gigabit really paid off over the Corona crisis because we could, almost overnight, allow the entire country to start moving to working from home. The other big advantage of vectoring is in the fiber rollout. Our last mile in Germany is shorter than anywhere else in Europe because of the depth of our vectoring coverage. The last mile in Germany is 200 to 400 meters. That's a lot shorter than elsewhere. We'll come back to why it's still so expensive to roll out fiber, the shortening of that length was a huge achievement of vectoring. As a result, we have a copper network that can deliver up to 250 Mbps, and for a large number of customers, already delivers more than 100 Mbps. That's different from a lot of places in Europe. How do we build on that foundation and accelerate? Let's start with fiber and how we accelerate. Now, I already talked about this at our Q4 earnings call, where we laid out our target of 10 million homes by 2024, with getting to, with our competitors, 100% fiberization of Germany by 2030. Now, since then, I've spoken to a lot of you, and typically there are three questions. The first one, I think Andrew was kind of subtle in the way he phrased it, but how do you know 10 million homes is enough? Is there another CapEx warning coming around the corner? The second one I've dealt with is, tell me more about your fiber strategy. How do you decide where to roll out? What's your strategy? The third one typically is, how do the economics of fiber work? How does this contribute to monetization? Let me deal with them one by one. Let's start with, is 10 million homes the right number? We are convinced 10 million homes is the right number because we believe that's the number we need to get to about 60% infrastructure share. What drives that conviction? Three pieces. Firstly, the demand side. I've seen fiber rollout in over 10 countries now. Consumer behavior remains quite clear. There are two principles. One, most consumers hate having to move infrastructure and change their in-house wiring and everything else, unless that's the only way they can get high speed. Most consumers upgrade the speed of their line one step at a time, at most two steps. They go from 16 Mbps to 50 to 100 to 250 to a gig. Why do they upgrade one or two steps at a time? Each step normally comes with a 15% price premium. You take those two principles, and all the data I've seen in Germany suggests that those two principles still hold. You add a couple of facts to those principles. One, over 80% of Germany has vectoring available. You take a second fact, which is that in our retail plus wholesale 25 million customer base, 80% of customers are at least one or two steps away from the peak speed that their line can deliver. What does all of that mean? For the next four to five years at least, a lot of the demand for fiber will come from the 20% non-vectored areas and the 20% in-vectored areas who have already reached the maximum speed potential of their line. There will be demand, but that demand will be focused in certain pockets, and that demand will grow, because what will end up happening is that more and more people will reach the peak potential of their line speed. It will grow steadily. There isn't a flood of fiber. There's a steady, nice growth in demand for fiber. When we work through the math of all that, we come to the answer of 10 million lines will comfortably put us in a place of 60% infrastructure share, assuming people build in economically sensible manners to drive demand. There is a second factor which convinces me that 10 million is the right number, which is supply-side dynamics. Tim referred to this. Germany, it is bloody hard to build out fiber. You have 2,700 different municipalities. There is my favorite German phrase now, Genehmigungsverfahren, which is the process by which you get permission to build. That has to be negotiated with every single municipality at a local level. By the way, the municipality does not necessarily always give you permission to do microtrenching. In most cases, not. Almost never gives you permission to do overhead. What you get permission for is Tiefbau, which is expensive and takes time. It takes time to scale fiber in Germany. You add to that the fact that construction capacity is pretty limited. Scaling fiber in Germany is a lot harder than what I call fiber to the press release. There are a lot of people doing press releases on the amount of money they've raised and the rest of it. It's very hard doing that with 2,700 municipalities. We'll come back and talk about some unique advantages we have in that context. I think that supply-side constraint also makes me really comfortable that when we scale this machine to 2.5 million households, we will get 60% infrastructure share. Last but not least, every good plan has to have contingency to it. Our plan has flexibility, firstly because it's self-funded. There's an important element of breathing room that we think is critical, which is external funding. What do I mean by external funding? I mean raising external funds in a manner that we get as close to owner economics as possible and raising external funds with a JV with as much independence that allows us to get off-balance treatment. What does that look like? Think KPN APG. We really like that model. Now, we're in quite progressed conversations on getting there, and that will come on top and give us capacity on top of the build-out we're just talking about. Hopefully that nails question one, why do I believe the 10 million number is right? Let's go to question two, which is how do we think about our strategy for rolling out fiber in Germany? In many ways, it follows exactly the same principles of supply and demand. Now, the way we think about Germany, firstly, is to start de-averaging it. Let's start with the quadrant on the top left here, which is areas where we have an FTTC network and there is fiber competition or coax competition, more likely. This is typically in the large cities, so the Berlin, Hamburg, etc., of the world. Here, also a lot of customers live in the multi-dwelling units. How do we decide where we roll out here? How do we actually scale this? We start with the supply side. The most important thing here is to absolutely make sure that you get the municipalities on-site. Berlin, great case in point. We committed to rolling out 1 million households in Berlin because we have a deal with the city where they have made massive improvements in their permission process. They have digitalized a lot of it. That helps take out costs. That helps cut time. We also look at making sure we get agreements with the multi-dwelling units so that we can put our fiber in there. Here, what has been achieved with the removal of Nebenkostenprivileg is massive because it suddenly changes our ability to get into these buildings. The other factor we look at here is how utilized are these customers? To what extent do we see demand as people are getting close to top speeds? Again, in a lot of metros, that tends to be quite high, depending on the area you're looking at. That's how we think about the first set. In the first set, these are not just kind of empty concepts. We've evaluated and started now declaring our plans by city. We declared 1 million in Berlin. We will do 1 million across Frankfurt, Hamburg, and Düsseldorf. We are now laying out detailed plans per city. Let me now go to the next quadrant, which is the top right. Now, this is areas where we have FTTC. There is no alternative infrastructure. Now, these areas are very different. There is a lot of distribution in these areas because they range from the outright rural to just outside a city. Therefore, there is a massive deviation in the cost to cover here. It can range from EUR 900-EUR 5,000 in these areas. How do we decide where we go here? What do we do here? Again, the same supply and demand-side factors. Let us start at the supply side. Freiburg is a good example. Really good cooperation with the city council helped bring down the cost to build. Other factors we consider here, clearly the most attractive areas in this quadrant are ones with the lowest cost to cover. We proactively go ahead there so that we can prevent cherry-picking. These areas from 2023 onwards will also become available for subsidy, and we'll compete hard and win a lot of subsidies in these areas. Let's talk about the third quadrant here, which is the bottom right. Which is kind of really rural. This space, you have no FTTC and no competing infrastructure. It's the center of the government subsidization program. Let me give you some facts here. When you look back from 2013 to today, we have won about 60% of all the households that have been subsidized. In places like Bayern, our win rate's actually 80%. We like the subsidy program, it's very sensibly structured, and we will continue competing and winning in this space. To the bottom left. This is pure market share gain territory, honestly, because here we're in a place where there is competing fiber or coax infrastructure. We don't have FTTC, and our shares are quite often lowest here. How do we attack this space? Again, supply and demand. Good way into supply, partner with a local utility. Example, Glasfaser Nordwest, where we're working with EWE TEL to build out here. There are other options and models as well. The other thing we're looking at is if the costs are low enough and there's high enough utilization here, let's go for it and overbuild. Right? The worst case or the last resort is we will hold by and continue to provide our customers with this. I hope that gives you a sense of how we think about de-averaging the German fiber monster. Right? How we think about going about it. The one thing in common with all of these is the way we approve projects and commit to building. Every project has to deliver greater than the hurdle rate of return or the hurdle IRR, which is 7.5% pre-tax. What that means is our average is not 7.5%. That's the minimum. Our average is clearly north of that. That gives you some sense of how we think about the different de-averaging of fiber. Let me go to the third question, which was how do we think about economics of fiber? Three big factors driving the economics of fiber, ARPUs, utilization, and CapEx. Obviously a fourth, which is market share gain, which we will have in some areas, but I'm going to focus on these three right now. Let's start with ARPU growth in retail. Right? Our retail ARPUs have followed the earlier principle I was talking about, which is customers upgrade one step at a time, and as we rolled out more and more vectoring, people moved out from 16 to 50. That's why we saw a 5% ARPU growth from 2018 to 2020. We roll out fiber and add to that infrastructure, it will fuel the ARPU growth. On the utilization side, we're sitting today at 51% net add share, which is well ahead of our fair share. We will certainly defend at least 40% net add share in retail. That combination on the retail side fuels the monetization of fiber. On the wholesale side, again, the same two factors. What gives us almost a bedrock of utilization is the long-term wholesale deals we have with our partners, 10-year deals. What drives ARPU is a really forward-looking framework from the BNetzA, which is structured around more for more. I think Hannes talked about this in detail in the Q1 earnings call in terms of the trajectory and why in 2021 and 2022 we see a slowdown, and after 2023, we see the growth. The reality here is our new commitment tariffs have a price increase for 50 and 100 Mbps, but more importantly, a clear more for more growth path on fiber. You pull that all together, the ARPU and the utilization levers across both wholesale and retail drive the revenue side of fiber. Equally importantly, driving down CapEx efficiency. We are committed to reducing our CapEx per home pass by 25%. Let me be clear about what I mean by that. That is CapEx per home pass, like for like areas. Obviously, our overall CapEx per home pass depends on our mix. If we roll out more urban, we have lower CapEx per home pass, more rural, higher CapEx per home pass. On like for like basis, we will take it down by 25%. Is that a pipe dream? Not really. Quarter one, we are already running at about a 5%-7% efficiency. We're already beginning to really move the needle so that by the end of the period, we will definitely be at a place of 25% lower CapEx per home pass. What drives this? Four things drive this, right? Number one, scale. That allows us to standardize processes. That creates massive efficiency. Number 2, digitization. Claudia will talk tomorrow about how much we've reduced our time to plan, but digitization across the fiber factory is a very powerful tool, including with things like T-Cars, which allow us to map out an area before we go into that and give us a reliable sense of CapEx. Right. The third big factor here is what our scale gives us in terms of committed relationships. We talked earlier about construction capacity. We have 70% of our construction capacity for 2022 already signed and committed. We have a similar number even for 2023. Why do we have that? Because of scale, because of our willingness to do long-term deals, and our willingness to do turnkey construction. Last but not least, my favorite topic again, Genehmigungsverfahren. The beast that getting approvals from local municipalities is hard. It's a lot easier when you have 13,000 people who are deeply regional, come from the area, are able to talk the dialect, can work with the local municipalities to actually get us microtrenching, to get us the local permissions that we need. That combination of things is why I'm confident about the economics of fiber and about the 25% CapEx reduction. Moving on to the next piece of accelerating our infrastructure, which is 5G. Building on the head start that we have to drive efficiency and to drive monetization. Now, the head start that we have is not just in coverage, but also in total spectrum deployed, and importantly, especially with 5G, number of sites backhauled by fiber. We have a 75% connect rate of our sites to fiber. Now, how do we drive efficiency on top of this? Similar to the way we've actually been really efficient by using DSS, as the way of rolling out our fiber, we're now retiring 3G. We will use a lot of that spectrum for 5G. We're looking at small cell deployments to further increase the efficiency of our 5G. On the monetization side, I think the first couple of years of 5G will be monetizing using B2B. I think there's order of magnitude, a low three-digit million number in terms of the size available as opportunity for us to go after with IoT, with campus networks. I'll come back and talk about that. On the B2C side, most of the monetization will come from upgrading our customers to higher tariffs. Again, I'll talk about this more on the B2C side. That was the heart of Network Beschleunigung. I'm going to now move on to talk about our B2C area and what drives acceleration within our consumer business. Let's start from where we are. Where are we today? A really strong consumer business that gets its strength from product leadership in each individual area. We're clearly product leaders in mobile, fixed, and convergence, and we have a really powerful brand that pulls it all together. Where do we go from here? How do we build on top of this? I think the next part of this journey, very similar to Tim's articulation of being experience-led, where we think we can unlock growth from herein is from going from product leadership to really growth driven by loyalty and owning the household experience. What does that mean? What does that look and feel like? Starting off with how we create growth from our existing customer base. I've already talked about the fixed line side and the amount of upside left in monetizing our base. 25% of our retail customer base today is sitting on greater than 100 Mbps. There is a huge opportunity as the demand for speed goes up for us to monetize this. We will see a 100%-150% increase in the percentage of our customers who are on greater than 100 Mbps. With EUR 5 typically per upgrade, that is a lot of revenue. The second part of our upgrade story is in mobile, where we will see a 50%-100% increase in the number of our customers on the largest tariffs. How do we do this? We can learn a lot from the playbook in Europe, in the DT European countries, who successfully driven a more for more, including an accretive ARPU strategy by really managing channels well rather than by discounting. I'll come back to this theme in a minute when we talk about convergence. The important thing is this not just gives us more revenue, but you can see with the chart on the left, it gives us significantly happier customers. That's a big part of creating growth through loyalty. The second part of the playbook for driving growth in consumer is convergence, is really beginning to own the household. Today, we have 11.6 million retail broadband customers. Let's take a finger in the air. That probably means 20 million SIMs in these households. 5 million of them are Magenta. Gives you a sense of the opportunity available for us on convergence. Taking a leaf out of the European playbook, we're at about 51% convergence in Europe. How did we get there? Four years ago, we were about 25%, 26%. We got there through very disciplined execution. We didn't get there through discounting. What does disciplined execution mean? It means every time you walk into a store, every time you make a phone call, every time you use the app, and I know you're an existing broadband customer, a combination of channel incentives, data in the ecosystem, my CRM, allows me to speak to you about the benefits of getting onto a convergent package. That in the heart of it is what unlocks all of the good stuff in convergence. The 50% churn reduction, the higher ARPUs, as well as the higher customer satisfaction. That's very much the first two steps, or as Tim would say, the horizon one of this. Equally important is now binding this together in a true converged product experience. I know Claudia's got a lovely video on this tomorrow. I'll leave you just with the headlines of this. In the end, we own the three most important and sticky gadgets in a consumer household: the router, which decides where you get coverage, your TV with MagentaTV and the mobile devices. Our vision here is to pull them together in a seamless experience so that you get a genuinely converged product feel. That gives you some sense of what underlies the B2C growth story, the B2C acceleration from product leadership to loyalty and household experience-driven growth. I'm going to move on next to B2B. B2B is interesting, right? B2B is, I'm sure a lot of you see it as the graveyard for incumbents on growth. Fact one, our B2B business has grown 0.7%, but it has grown in the last 3 to 4 years, which is more than you can say for most. It's grown despite the headwinds. 3 significant headwinds. IP migration, EUR 100 million a year. Corona, EUR 240 million. We went through a difficult process of integrating a EUR 2 billion TC business from T-Systems last year. Despite those headwinds and challenges, it's grown. Why? Of an incredibly strong market position, really good distribution, good service, and a great network. You put that together and you get what's now a common picture, I'm sure for you, a solid foundation on the basis of which we can accelerate. One of the biggest forces that's emerging for me in Germany now is the flood we're seeing of businesses beginning to digitize. Things like the European Recovery Fund, where 20% of it allocated to digitization will only help. We're seeing, especially post the pandemic, a huge push towards digitization. There is a unique opportunity for us in B2B to be at the center of this. Rather than me talk about it, I think this video captures a lot of what I'm saying here better than I can. With that, can we play the video, please, on B2B? German businesses are digitizing more than ever before. From small to big companies, from startups to the public sector, from hotels to schools, they all need a trusted partner who can offer them the whole spectrum of digital solutions. That's exactly why Telekom is the partner for digitization. With its integrated digital ecosystem, Telekom offers the right solution for all kinds of businesses. Die Telekom ist für uns ein sehr wichtiger Partner, der nicht nur nach außen Vertrauen schafft bezüglich der Datensicherheit, sondern uns auch aktiv bei allen möglichen Themen wie Hosting, wie M&M-Geräten, wie auch Telefonie und auch Vertriebe unterstützt. Mit dem Eye Tracker haben wir die Möglichkeit, die Fahrzeuge auch schnell zu orten und der Produktion just in sequence zuzuführen. Das ermöglicht Freiräume in unserer Schaltung, damit wir uns auf unsere Kunden konzentrieren. Investing in public institutions and schools, we guarantee a fast and stable net with connectivity and hardware in socially relevant sectors. [Foreign language] wir haben jetzt 5G am UKB Campus, weil wir die Latenzzeit von der Diagnose zur Therapie maximal minimieren möchten. Das Herausragende an unserer Partnerschaft mit der Telekom ist es, dass wir hierbei mit einem global agierenden Partner auf höchstem Professionalitätsniveau arbeiten können, der eine eigene Sicherheitsinfrastruktur schon aufgebaut hat, die wir nutzen können. To benefit their needs, Telekom values partnership alongside the customer's vision. Ich glaube, dass wir auch in der Zusammenarbeit mit der Deutschen Telekom hier eine innovative Marktführerschaft erlangt haben, was das Thema Digitalisierung anbelangt. Seit 2014 arbeiten wir schon eng mit der Telekom zusammen und das gibt uns wirklich ein Gefühl, dass wir gut gerüstet sind für die nächsten Jahre der Digitalisierung. Alles aus einer Hand. Rundum eigentlich der beste Partner, den wir uns wünschen können. [/Foreign language] With these digital solutions, Deutsche Telekom enables end-to-end digitization for all business customers, secure, simple, and innovative. Thank you. I hope that gives you some feel of the speed at which this is moving in Germany and how central we are to making this happen. Especially post the IP migration, with our ability to offer services like SD-WAN, this does change the game. A bunch of factors for me now convince me that this business is ready to accelerate from 0.7% growth to 2%. Number one was the digitization flood that I just talked about. Number two for me is the fact that the headwinds have turned into tailwinds, certainly with IP migration, and as we're seeing increasingly with Corona. Last but not least, our go-to-market is really powerful now because we're able to take all the Telekom services together and offer our customers integrated services from one hand. That is the story of why we believe in B2B acceleration. Having talked about the digitalization of our customers, I want to now talk about our own digitalization. We will look to substantially accelerate digitalization in the next three to four years. Starting off with the front end, how do we think about digitalization at the front end? At the front end or customer-facing, I think our strategy is actually really simple. It is bring together the best of digital with the best of the human touch. What does that mean? It means using digital to eliminate as many routine transactions, to eliminate as many faults proactively as possible. Tim already spoke about the 3,000 bots. We are putting in place now a tool called Magenta View, which gives you an overview of your entire relationship and is powered by AI. Tools like these help remove a large number of the routine inquiries, which then allows us to really invest in our people to solve those difficult problems which need a customized solution, which need someone to talk to you. That said, the only way you can do that is incentivizing them right? I often say telcos sometimes are a bit bizarre. They first cause you a problem, and then they pay people to spend less time solving it for you, which is really what paying people based on average handle time really is. Right? With our people model through dramatic digitization, what we can do is really take home the Team of Experts model that the U.S. has designed and focus on solving customer issues, focus on incentivizing first-time resolution, first-contact resolution. This combination of digitalizing the front end as well as combining that with people where we need them most will see a 60% first-contact resolution, more than EUR 200 million in savings over the next four years, and a growing customer satisfaction. That's sort of the front-end story. Our view of digitalization is full stack. It's not just about the front end. The principles of digitalization apply across the entire stack. Claudia will talk about that in more detail tomorrow. It equally applies to the back end, it applies to our IT, and it applies above all to our network through disaggregation, cloudification, and automation. Let me just give you some quick sense of the way we think of the outcomes of this. Really strong outcomes on customer touchpoints, as I talked about earlier, app penetration, e-sales share, digital share. Very strong outcomes on the IT side in terms of a more agile, quick-to-react IT. Last but not least, at the heart of our business, cloudifying, automating, disaggregating our network. When you pull all of the digitalization stuff together, what's the payoff? Pretty impressive in the next four years. We will take out EUR 700 million in indirect cost. A lot of that will come through directly through the digital tools. Some of it will be the knock-on effect of the nature of the organization we will have, a slimmer, smaller organization, but also some real big knock-on indirect cost effects. We will give up about 300,000 sq m of real estate, 50% reduction in real estate because of this whole process. That's then we've now covered off the acceleration of the infrastructure build, how we fund that through accelerating revenue on B2B and B2C, and through accelerating digitization. Last but not least, is a subject quite close to my heart, which is the place we occupy in German society. We are proud today of being an integral element of the German social fabric. Nothing shows this more than the way we reacted to the COVID crisis. Things like 10,000 smartphones being given to old age homes, things like specific packages for our B2B and SMB customers to enable them to move quickly to home working. This lies at the center of what Deutsche Telekom Germany is. We believe we play a central role in society, and we don't see that as an obligation. We see that as a privilege and something quite special to be. Just as in all the other areas, we're committing to accelerate this as well. How do we do that? Deep involvement in digital education and literacy, 7,000 schools to be covered through FTTH and digitized. Real commitment to the environment. We're already 100% user of renewable energy. Again, Claudia will talk in more detail about this, but we plan to push further on energy efficiency. Even the way we build networks, build networks with the community, for the community, not for ourselves. That combination of things we think is an integral part of who we are, a responsible employer, a responsible corporate citizen in Germany. That sort of covers all of the five big areas of acceleration. I'll move on now to the outcome of all of this. Right? The combination of driving B2C growth from loyalty and households to being the chosen partner for the rising wave of digitization in B2B, to driving digitization within our own company and having built a solid foundation which gives us tailwinds now enables us to accelerate EBITDA growth from the 1.9% you saw to the 2.5%-3%. When you put together this accelerated EBITDA growth with real discipline around capital allocation and asset management, some examples. As a result of IP migration, next year, we will switch off our SDH platform. That will give us EUR 50 million savings in indirect costs. We are now retiring our 3G network. Mobile network, we have 6,000 sites that we will share in white spots across us and Telefónica and Vodafone. That plus all the CapEx efficiencies I've already talked about will result in, as Tim said earlier, a 50% growth in our return on capital employed. You have a business here which is growing, creating great terminal value, with 10 million homes of fiber by 2024, and still creating value each step along the way, not just with ROCE greater than WACC, but with a ROCE that is growing. That truly is what acceleration means. Sum this up in terms of our midterm ambition. I think this is a repetition of a lot of the stuff we said. I'll highlight the EUR half a billion higher cash CapEx. That was exactly what we guided at the end of the Q4 earnings call. Two and a half to 3% EBITDA growth, which I've talked about, 10 million FTTH homes passed, 97% 5G coverage, 700 million indirect cost removal. All in all, a comprehensive for the German business. As we talk about acceleration and everything that happens with it, none of this is possible without really charging the motor of this company. 60,000 people who come to work every day at Telekom Deutschland need a purpose. They need a reason to accelerate. That reason and that purpose is turning our customers into fans. That's the reason why we accelerate. What that means is not just a slogan. It's about us really putting our frontline first, the people who are out there serving our customers through all of the pandemic, the people who are out there day and night actually delivering for our customers. Because we believe only by putting our frontline first, can we put our customers first, and only by doing this can we make the transition not just to acceleration, but from a solid, well-delivering incumbent to an accelerating un-incumbent. Nothing captures this spirit more than the film I'm about to show you. Thank you. The film, please. Our mission is to turn customers into fans. To make this become reality, we are focusing our energy on the customer and shifting the company center of gravity to the frontline. That shift has already started. Whether in the service center, the field, the store, or through our technicians on site, our employees are in contact with our customers every day. They know exactly what our customers need. That is how they turn satisfaction into excitement. Therefore, our frontline is the key to our success. We will continue this journey. We are one team and we love what we do, and that's how we are already turning customers into fans. Well, thank you, Srini. That was really inspiring. We also feel inspired. We think we should turn investors into fans. That's our next mission here, or we're trying. The other thing that we really like is. I need to make an organization announcement. As you might have noticed, we are running over a little bit, and so we skip the break, and the subsequent sessions will move backwards a bit by 10, 15 minutes. Apologies for this, but I think it's important we also have a space for Q&A now on Germany. I know it's a business dear to your heart. We start with Simon. I can see you, Simon, from Barclays. Hi, guys. Thanks for taking the question. On wholesale, you've been able to negotiate these new wholesale contracts with the wholesalers that have a very attractive more for more structure on pricing going forward and as customers move to faster speeds. That means we're going to see wholesale revenue growth after a short-term hit. If we think about what's happened elsewhere in Europe, we've seen challengers actively try and avoid this cost inflation that this brings by maybe moving to alternative network providers. I'm just wondering, is there something in the contracts that gives you confidence that this won't happen? How can you get comfortable that, say, if a wholesaler does get reasonable market share, they won't seek to get some help from, say, private money that's very interested in digital infrastructure? Because you yourself said if you get good penetration in a certain area where you don't have infrastructure, then you'll be more than happy to overbuild. I'm just wondering how you think those moving parts play out and why you have a lot of confidence on wholesale going forward. Thank you. Thanks for that question, Simon. A couple of things. One, there are parts of the contract that we can't really talk about. The overall construct does give us a fair degree of reassurance in terms of utilization of the network. It's hard for me to go into more detail than that. It does give us a fair degree of reassurance on the utilization of the network. That said, will there be parts and geographies where some people will get some share on the wholesale business? Yes. Equally, there are large chunks of areas where we don't have share today. There will be swap sets that'll end up happening as a result of effectively an infrastructure reset. There's enough in those to ensure that there's a floor to the utilization of our fiber network. I'm already treading into ground that's beyond which it's hard to talk about. Yeah. Thank you, Srini. For sure, we feel very good about these contracts, and we went into a lot of detail as much as we possibly can at the earnings call. We are guiding today for flat wholesale access revenue. Can you just explain that briefly? Sure. Simon, the reason we're guiding for flat. Wholesale revenues, despite the more for more structure, is a well-publicized fact that Vodafone has committed to a certain amount of migration off our network to achieve their cable synergy. Effectively, volume goes down, price goes up. That's what creates stability. Okay. Thanks, Simon. Next question is from Josh at Exane. Josh, good to see you. Hi, guys. Thanks. I have two questions, please. The first is actually just going back to that very helpful quadrant on slide 12 about the different fiber build areas. I understand the cost of rollout and the potential returns in each of those areas may be different, but it'd be great to get a sense of which of these areas you're going to prioritize most in the near term. In particular, it sounds like this move to counteract cherry picking could be quite important when we think about the phasing of rollout in 2023 onwards. The second question is on this turning customers into fans strategy. You've highlighted that moving to convergence helps. Are there any particularly strong products in your portfolio and also particularly challenged products which you think you need to change the setup on? I think in the past we've talked about the fact that TV might be a bit laggy, a bit behind broadband growth. Are there any actual changes to the product structure you're thinking about as you look to achieve this? Thanks. Good. Let's start with the prioritization, right? On that slide, it also had the percentages of Germany in each place. You have 55% in quadrant one. You then have 15%, 10%, 15%, I think, in the rest. Broadly speaking, our rollout will follow some of those patterns. What have we announced so far? We've said we will build out 3 million households in rural. That's a public commitment, and that will fit into the right-hand side quadrants. That will be a mixture of subsidies, but also it will be counteracting cherry-picking. That's clearly one place. Then because 55% of the population sits in quadrant one, you will see us build out there as well. I think there will be slight differences in our percentage of build-out versus the percentage of population, but it's not going to be dramatically different because that gives us enough leeway to deal with the cherry picker issue. If you take the right-hand side quadrant, yes, there's 15% of the population there, but it's really probably half of it, which is attractive to build out without subsidy, which could be cherry-picked. You want to go there first, absolutely. That we're completely committed to, but that doesn't result in 50% of our money being spent there just because of the way the math lands up working, if that makes sense. I love your second question on product structure. Firstly, on TV, it's actually a product that we really like, and it's been going very well. As we look forward, one of the numbers I didn't put up there is our plan actually involves an increase in our 3P mix. From about 25, we will be looking to move that to 30, 33%, which is more TV attach rate to our existing product. It's actually something we see accelerating in terms of where we are right now. Let me come back to your other question of product structures and where that plays out. Look, I think some of the issues with an incumbent tend to be when you have back book issues, right? The most significant of those tend to be in B2B. I think what I really like about our portfolio right now is IP migration washed out a lot of those effects, which means we can now start competing in some of those places, SD-WAN migration, for example, without this Damocles sword of the back book necessarily hanging over us all the time. My sense of where we are on product structures and what you should be expecting is a lot more focus on convergence and a lot more focus on the Magenta brand in consumer. I think we punch below our weight on the Magenta brand in consumer, and you will see a lot more focus on that. Does that help? Okay. That's mainly also relative to, let's say, the Congstar brand or others. It's not necessarily an imperialist statement. Next, we have Ulrich. I think, Ulrich, we have you on the phone here. That's right. Thanks very much. Oh, cool. Okay. Go for it. Appreciate it. Thank you. I have two questions. Second one very short. The first one is the 4% minimum for the broadband revenue growth looks maybe a little bit conservative considering the MDU opportunity where the changes to the telecoms law means maybe a quarter of households, your competitive situation improves. Is that essentially because you think there's a case for not rocking the boat too much to sort of not disrupt market structure? What's the background there? My second question is about the 7.5% return hurdle for the project that you mentioned. Is that an all-in number after the loss of the legacy revenues that necessarily comes when you connect a customer to fiber? How is that calculated? Because it looks fairly high, given that you're essentially replacing infrastructure for one where you have paying customers already. Thank you. Good. I enjoy being told that 4% is conservative. Look, we are growing at 6.5 right now. Beyond the point, I am very optimistic about the broadband business. On rocking the boat on market structure, look, I don't like rocking the boat on market structure in general. Right now, we will gain share where we land up building. Even on the MDUs, in the vast majority of MDUs between wholesale and retail, we have 60% of the customers in an MDU typically are ours. When I build into an MDU, I'm often building for my own base rather than to necessarily gain share. We will land up gaining share in some places. There are lots of places where there's performance issues with competition, and we will land up gaining share. The 4% is, like I said, given where we are right now, I think we've benefited massively from vectoring. I think there's been some flight to quality as a result of Corona. We think it's a sensible number to guide for. From a market share perspective and a net add share perspective, I think the above 40 still continues to be where we are because we think that's the right thing from a market structure perspective. I think the biggest thing that the MDU access lands up giving us is it frees up consumer choice on TV, but also importantly, prevents people from blocking our entry with fiber. That's the way I think of it. On the fiber IRR, look, we can do a separate, deeper conversation on the specifics of the model. Let me just put some of the questions of fiber economics into context. I tend to think of fiber economics in the broader context of us running a business, a lot of which is valuation, is based on the terminal value. You think of yourself today in a decision where you don't roll out fiber. Four years from now, you have largely a copper network, and you have a business where ROCE is greater than WACC. You think of the alternative, we grow ROCE greater than WACC, we create value at each point, and we have a business with 10 million fiber homes, which clearly has significantly higher exit trajectory as well as terminal value. Happy to kind of walk you through the mechanics of how we calculate the project IRR and what drives the hurdle return, what's included, how much of it is a do versus don't do case, et cetera. We can take that offline and talk through it in more detail. Thanks, Srini. That brings us to the next question, and that will be from Emmett. Emmett? Oh, there he is. Wonderful. Good to see you. Yeah. Good to see you. Put on a white shirt, really cool. Look very smart. Nice. Well, thank you very much. Thank you. Srini was trying to speak or was speaking some German. I'll throw a bit of German in, too. Ich habe zwei Fragen or two questions, please. The first question is on your broadband market share and the outlook for that. If I rewind the clock back to, we say, the Capital Markets Day in 2012, I think that's when you announced your initial VDSL investment. Clearly, that was a, let's be honest, it was quite a defensive move because you were losing a lot of broadband market share at the time to cable. If you fast-forward to this year, your broadband speeds are now quite high. You've got a vectoring available to 80% of the population. It feels like a little bit more of an offensive move. With that in mind, is it fair to say that you could look at winning market share off cable, off the wholesalers as, I think, the motivation for moving to fiber is perhaps a little bit different this time? My second question was on the ARPU uplift as you move customers onto fiber as well. Can you just give a few words about your experience as you moved customers onto VDSL initially and onto vectoring later, and what the read across is for retail ARPUs as we roll out fiber? Thank you. Very good. Let's deal with the first one. I agree with you, fiber is a more aggressive move, in the sense of not purely because of market share, but in the sense of I could sit here and make the argument that we don't need to do it just now. I believe that's a defensive incumbent argument. I fundamentally disagree with that argument because I think of this differently. I come back from where customers are going to be. The upgrade cycle, like I talked about earlier, the two principles of the upgrade cycle, everyone tries to stay with their infrastructure until they need to move, looking for higher speed. Second, people make one upgrade at a time in terms of speed cycles. You could look here and say 80% of our customers have at least one or two upgrade cycles left. Let's milk that and then go on. My perspective on that tends to be different, which is let's get the 80% of them done in the next two years and get ready then for the next cycle of investment, which will give us another round of ARPU upgrades, and let's fund that by driving our efficiencies really hard. By the way, that upgrade cycle will help fund itself as well. I agree with you on the, it is not the classic incumbent way of thinking about it, which is milk the asset as much as you can for now. The market share gain, it'll happen when it happens. The bigger prize here is the growth within our own base. For sure, we will land up gaining share in some areas. We also need to make sure that it's coherent with the right structure. The ARPU uplift, great question. There's a EUR 5 ARPU uplift typically with each speed up that you move from. What we have seen in the vectoring cycle is order of magnitude of 5% ARPU growth, annualized about 2.5%. This is where you kind of get into the question of is 4% conservative or not, et cetera. I would expect us to see at least the same, because what you will land up having is more of a mix of the higher speeds. Here's how a typical pricing works. It's EUR 5 an upgrade up to about 250 Mbps, and then it tends to be more like EUR 10 an upgrade because the curve gets sharper. I'm hopeful of seeing an acceleration of that, but I will plan on seeing the 2.5%. Good. I think we take two more questions now. The first one is from Georgios Kertsos. Georgios, there he is. Wonderful. Hi, guys, thank you for taking my question. Mine is a follow-up on some of the comments you've just made around pricing. It's very encouraging to see that your significant fiber investments have been given some returns as part of the wholesale agreements. I'm guessing some of the other resellers may want to raise prices over time in order to pass through some of this inflation to the customers. I just want to hear from your side, what do you plan to do in order to maybe give them the room to do that, in order to raise ARPU, not just when migrations happen, but maybe in a bit more active way yourselves. The second question is more around capital allocation outside of fiber. Fiber is slow returns, but low depreciation. We can understand the mix when you benchmark with returns on capital employed. In the previous presentation, Tim also mentioned about cloud-native networks, IT, and some of these things are easier to do when you are greenfield than when you have a huge established base and also a legacy of technologies. I'd be interested to hear from your perspective, what are the challenges in your view, and does that mean you depreciate some of your existing assets earlier in order to move into cloud-native solutions before competitors? We start with the pricing piece. Look, I think two, three separate perspectives or reactions to it. I tend to think of speed upgrade-driven ARPU increases as healthy. There's a real danger in fixed line, where sometimes you are the only supplier in a region, and you view that as permission, sometimes like in cable in parts of Eastern Europe, to have an annual round of price increases. I think that can get dangerous from a pure customer experience perspective, but also from a regulatory perspective. I have a bias towards growing ARPUs as people upgrade. Right? The way I think about room, and I think a healthy market structure is always worth keeping an eye on. One of the things I keep a really close eye on is how is our net add share evolving. Are we making sure that we're at the right mix in terms of net add share? That's where I think your really good question on how do you make sure you give people room plays in, because ultimately their pricing is their own call. I look at titrating my mix in terms of what is my net add share, and do I think that's appropriate from a healthy market structure perspective. On capital allocation, and especially on new technologies, Claudia will talk a lot about it. I think firstly on the IT side, I think the view that somehow incumbents have a huge disadvantage is increasingly changing. Right? As you get into a world where you're able to introduce, for starters, an intermediate layer, which is API-based, you're able to start with overcoming a lot of your disadvantages. There's so much cloud-native IT available today that you can piece by piece start taking apart your old BSS and OSS to do a three-year migration. I think the old world of if you are an incumbent, all you have to do is a big bang IT project that costs three times as much as you thought and takes three times longer. I think we've proven now in several countries that that's a myth. In Germany as well, we're making the same journey. Right? I think your network question, I think there it is harder to swap it out overnight as an incumbent. I also think the components of a network cost structure are more complex, and there are several incumbent advantages in it. The amount of spectrum you have, a huge advantage. The amount of towers you have fiberized. Yes, it's easier as a new player to come in and establish a cloud-native core. The core is a small proportion of the total cost structure. Right? Scaling is really hard. I mean, just to give you an example. Let's say you have a player in Germany who is building a cloud-native infrastructure. They can build that, but it'll take them 10, 15 years to get to, or take them 10 years to get to 50% population coverage. That scale itself does have limitations purely because of the availability of sites, the antenna available on rooftops, et cetera. All of that does impact their ability to really attack. For us, on the other hand, as an incumbent, we are in a place where if we started pushing on O-RAN, which we are doing now, and we're looking at lots of options of really scaling O-RAN. In four to five years, we could have a significant part of our network disaggregated, and we will always have our 30 odd thousand sites, which gives us a scale advantage. I think that puts and takes on it. Excellent. Of course, more on this from Claudia tomorrow. Last question, please, is from James. James, good to see you. Go for it. Yep. Hi, Hannes. Hi, Srini. Two questions from me, please, first. The first one, would just be interested to hear a bit more about your targets around B2B growth. I'm thinking about this specifically in the light of what Vodafone said yesterday. They specifically were talking about increasing their investment in B2B and seeing considerably higher growth rates maybe heading towards mid-single digit revenue growth. Is this an opportunity you see where you might actually be able to increase investment more in Germany and potentially drive higher growth than you're targeting at the moment? Do you see something specific about Germany that maybe the B2B growth rates in this market are going to be a little bit lower? The second question I had, please, was around the network economics you were talking about in some of these joint fiber projects, and we'd just love to hear a little bit more about how that works. Your project, for example, with NetCologne or EWE, as you're migrating customers potentially over onto those shared networks, how are you incentivized to do that if you're moving from 100% ownership of a network to a network that is joint owned? Would just love to hear a bit more about how you see the economic payback from those models. Thank you. Good. Let's split 3 different types of models. James, sorry, I'll deal with your second question first. 3 different types of network economics models, right? I think the NetCologne one is a pure hold buy. That's why I said this is my last resort. I do lose margin in the process of moving to a hold buy. Now we have hold buy today in FTTC. We will have some hold buy tomorrow in FTTH. That's not going to be the center of my economic model. Avaatel, very different case. That's one of the bottom left quadrants. Where we didn't have FTTC, reasonably low shares. There's a lot of upside in creating that model. The third different model is kind of the KPN APG model. Which is if we get into a model with an investor. Now there, the way we maintain as close to owner economics as possible is by trying to figure out ways in which we can effectively capture a lot of the value between the passive and the active layer. When you de-average a network, ideally, when I buy someone else, I want to buy passive, or if I'm buying active, I want to be the provider of the active services that go with it because I have scale on active. That's how I think about making sure I get close to owner economics and gives me incentive to migrate. In the other, in the Avaatel case, there's pure upside and NetCologne hold buy is hold buy. I will do it when I have to, but it's not my going in choice. I would ideally prefer to do it when I do it with community-based players like Avaatel rather than pure overbuilders and cherry pickers. To your first question, B2B growth, look, I think there's upside. I don't think this is a question of investment in our case because we're making the investment in fiber and networks and infrastructure. I think the real question here is, for us, how do we make sure that we develop cutting edge B2B product. Cutting edge B2B product both in terms of software-defined networks, but also things, Tim's point earlier, being able to manage a disparate, diverse network, and being able to control and automate it. That plus areas like cloud communication. I don't think this is network investment. I think this is product investment. We do foresee a fair amount of that. Is there upside to the 2%? Yeah, I'd love for that to be. Am I happy to say right now there is? We'll see. I think you can bet too much on things like the EU Recovery Fund. I saw a lot of press about that yesterday. If those tailwinds blow in Germany as well, then we will benefit from it more than anyone else. Excellent. Thank you so much, Srini. That brings us to the end of this Q&A session. Of course, we will be talking to you a lot more in the next weeks, months and years on many of these subjects. Apologies again for taking your time, taking your break away. We come to the next session straight away. The next session is on Europe. Our next session will be presented by Dominique Leroy. She doesn't need much intro in this audience here. We are delighted to have her in our management team. At our last CMD, we presented our turnaround plan for the European segment. Now, three years on, Europe has become one of our best performing assets, best performing telcos. We have the same challenge as in Germany, how to accelerate, how to make something good even better. This is a noble challenge, and who would be better qualified to take this challenge than Dominique? Dominique Leroy. Thank you, Hannes, and good afternoon, everybody. I'm really happy to be here in my new capacity of board member Europe. I'm sure you remember, three years ago, Srini was standing here and was talking about turning around Europe. I can tell you that today I'm very proud to say that the turnaround has been done and that we are today a leading large-scale European telco, and on top of it, a very fast-growing European telco. The whole challenge we have today is how do we write the next chapter? How do we accelerate that growth? What we want to do is really go to long-term sustainable growth by focusing on customer centricity and on digitalization. We have opportunity in the B2C area. We want to scale fiber. We want to upsell customers in fixed mobile convergence, grow revenue per household. We want to improve customer service even further. We want to grow in B2B. There are several markets where on B2B, you have still lots of opportunity, and we will grasp that because we will also converge telco and ICT products in the European region. Next to that, people are very important to me. We want to scale agile organization, customer-centric mindset. I will talk about network, how we will scale fiber, how we will bring 5G, and a very important element for us as well is how do we scale digitization and where do we go from where we are to the next step in digitization. One element, which for me is a very important one, and I would probably not have said that three years ago, I think today the telecom operators that will be very successful going forwards are the ones that are multi-country. We are able, with digitization coming up, with cloudification coming up, to really scale across the countries. That will give us a very strong advantage versus local players. We will be able to get best practice from one country to another, scale our digital infrastructure, scale cloudification, and that will give us way faster speed to markets than competitors. A last element which I will come upon is very much how Europe will bring a fair share and a fair value to DT equity. We have been growing, we will continue to grow and accelerate growth. We have a very strong cash conversion and we want to accelerate that as well. On top of it, you will see that our ROCE is a quite nice evolution as well. Let's start with the review over the last four years. If you look at that, these are the figures of 2020. We are EUR 11 billion turnover European telco, if you look at the region as a standalone region. We deliver almost EUR 4 billion EBITDA, close to EUR 2 billion cash. If you take those figures in a standalone European landscape, we would be around the seventh biggest telco in Europe. Far ahead of Iliad, of KPN, of Telia. On top of it, we are one of the fastest-growing telco. If you see some figures here, even with one year of COVID in the four years. COVID has impacted quite a lot the European segment because you have a lot of countries like Greece, Croatia, that have had quite a lot of revenue and profit in terms of roaming and visitor. Despite that, we have been able to get a 2.3% EBITDA growth over the period and a 3.9% cash growth over the period. I think a tremendous presentation of the EU segment and somewhere, I think something is not always well-known or known enough in the community, and I think we should really reconsider Europe as a key engine for growth within DT. We look at the market, because then sometimes you could say, "The European markets are not very healthy markets." I would just say it's the opposite. If you look at our market, we have quite a lot of growth potential. If you look at the expected consumer spend on telco market, it's around 3.5% going forward. A very strong potential growth. You look at the structure of our market, most of our market are three MNOs markets where we can indeed further drive growth. Only two of them are four MNOs, which is Poland and Romania. We also today, very much more than before, we have regulation and we have government that are really looking at how can we faster digitalize those countries. You look at the DESI index in Europe, we are currently in the countries we are in, relatively below the median with the exception of Austria. We see that quite a lot of political will is there to further drive infrastructure rollout, to further drive digitization, and we will get around EUR 20 billion of EU funds that will come into the DT EU footprint. I think all those elements should give you confidence that the EU segment is growing, is big, and has quite a lot of growth potential going forward. Let's look at what we have achieved over the last three years. You see here 13 quarters of growth in a row. Growth coming from around one-third net margin growth, two-third reduction of cost. I will go one by one through those parameters. If we look at the revenue, it is both value and volume. Very important. You see the acceleration over the last year. The value has been achieved by upselling customer on the mobile, but also, pushing the fixed mobile convergence and the volume. You see here a few figures, 2.5 million new extra mobile contract customer and close to 1 million broadband customer. On the cost side, I think it's quite impressive what has been done on the cost side. We have been able to reduce IDC by EUR 320 million. A 30% IDC percentage on revenue, which I think is close to best in class. You will see we will not stop there. We will go further. We have done that through some reduction of people, quite a lot, 6,000 people less in 2020 versus 2017. That has been very much by downsizing central function, outsourcing some non-core activity, and a bit of digitization. That's where I think we can still grow further if we look at the future. Another thing we have been doing, Tim has highlighted it, we have been able to put one new home passed in fiber in 2020. It was the first year that we have been able to get to this number, but our intention is really to go forward with that number. You see here some figures, 22% coverage, which is quite significant. What's for me is even more important, it's not just home passed, it is homes connected. The homes connected, 30% utilization of our network, 1.7 million homes connected on fiber already in our footprints. If you look at then all the promise that were done back in 2018, I am very proud to say that we have delivered. All measures are green, being measures on the customer side, the consumer sides, the business sides, and the financials. I have highlighted most of them, so I think we can really be proud of what has been achieved in Europe. Let's look together now how we move forward from here. Strategy 21/24. A few elements, Hannes has highlighted to it. It is really moving from good to great. We want to do that by a few elements, keeping a fast-growing telco with a customer-centric and digital focus. Winning the hearts and minds of customer, even going further than just a good customer service. It is winning hearts and minds. Truly converge fixed-mobile convergence in every market we are in. Drive further digital, as we have a very strong basis. Change the organization to an even more lean and agile organization. Last but not least, move our brand from a rather functional brand into a territory where I would call it love brands, but I will come on that later. We'll do that around six levers for growth. I will not go in details on this one, but immediately jump into the B2C elements. Where we are today, I think very strong growth in number of subscribers on all our products and a quite strong FMC, 51% of our broadband base is already fixed mobile convergence. If we look at the future, what we want to do is further drive fixed mobile convergence value, also capture underserved segments. The fiber build-out we will do. The 1 million additional fiber a year will really help us to boost broadband penetration. From there, the strategy is to really cross-sell and upsell, get several multi-mobile customer onto our broadband, upsell on TV, also upsell potentially on new services coming down the line. The second bucket for growth in the B2C is very much capturing all the segments. We are running segmentation study in all our footprint, and from there, we are really looking how can we capture also the young generation, be relevant with proposition for the young generation. Also look where relevant to either reshape or introduce a second brand where we can really tap into the smart shopper segment. That will help us to drive new customers and then being able to upsell them to the Magenta entity proposition. Customer centricity. Best customer experience. Our very second pillar. We have a lot of customers. We want that those customers are really happy and loyal customers. We want to reduce churn further than we do today. For that, we will really drive a customer-centric organization. We will also make sure that we implement a tool which is called Medallia in all the footprint. It will be rolled out this year. From there, we will really get a lot of information on every interaction we have with our customers. From those knowledge, we will be able to identify what are the pain points, and we will then be able to really reallocate resources and CapEx to make sure that we tackle the pain points that are really hindering the most our customer experience. Last but not least, we really want to implement the customer journey mentality in the organization and process in the organization by really being end-to-end, really looking at end-to-end experience for customer, doing that also across all the channels. Knowing that, of course, we want to push more digital channel, we will making sure that both digital and human touch are centric to our customer interaction. I touched upon it in the intro, the love brand. The love brand for me is really how can we with our T brand convey digital optimism to the countries? How can we turn employees and customers into our brand ambassador? How can we bring the brand in a much more emotional territory where people are really attracted by the brand, and therefore we will be able to fish in a much bigger pool of customer that would come to Magenta. That's all the major pillar of growth on the B2C that should translate in those metrics. We want to further grow significantly our EUR 6.6 billion consumer business. We want at least to have net add share in line with our fair share. To be honest, in countries where we are not significantly dominant or incumbent, we want to even grow these net adds. We want everywhere to grow value market share. We want to deliver a 1%-2% net margin growth. You also see on the right side everything, our targets on fixed mobile convergence. We want to grow by around 10% a year to at least 4 million fixed mobile convergence, driving value and driving the ARPU per household. Let's go to B2B. In B2B, we have already realized quite some good growth. ICT is within Europe. That's probably not always known to investor that the full T-Systems is in the NatCo, in the EU NatCo. We go to customer with a full package of connectivities and digital solution. We have been able to grow our ICT product by around 7% a year to more than EUR 1 billion. We have done that with a strong focus on profitable growth. You see there as well our ability to grow net margin in the B2B by around 2% over the last three years. Next to that, you know there is always a very important element in terms of competence, in terms of skills. We are organizing ourselves to have competence center in the B2B area to really drive the knowledge on our products across the region. Last but not least, I think we have done quite a lot of good work on the IoT and on the smart city, where we are rolling out smart city in several of our countries. If we look forwards, we want to continue the growth in the B2B, focusing very much on the different segments and accompanying our customers into their own digitization. We want to become the partner of digitization in the B2B area. If you look at the public sector, it's all about driving further digitization of public sector, also using EU funds because a lot of countries are running new projects based on those funds to digitalize faster the administration and the country. We also want to bring quite a lot of value in the enterprise segment. We will there focus on smart connectivity, SD-WAN, unified communication collaboration, but also tapping into the hybrid cloud space and bringing security into our portfolio. On the small and medium businesses, I think there is also a very different way of driving business there. It will be very much through Magenta bundles where we bring connectivity and digital solution in packages to small and medium company with service on top, and therefore scale their ability to tap into the digital domain for their business to become more successful. If we look how that translates in figures, we want to add EUR 300 million additional revenue into the B2B segment. I think there is a very strong opportunity still in three countries, and those countries are the biggest in terms of footprint in B2B. I mean Austria, Czech, and Poland, and these are three country where we are still a bit small, so there is still a big growth potential there. As I already said, we want to further grow with a healthy margin. Our objective is to deliver 2% net margin in B2B as well. If we move to people, I think people is very important. I already said it's all about attracting the right talent, having international and diverse scope, having organization that are lean and agile, and very much having a culture which is very customer-centric. You see a few elements there. We really want to become top employers in the country we are in. We are also a big players in most of the country we are in, so we also want to really take ownership for our impact on society and bring positive impact on society. We want to do that on digital inclusion. We have a lot of programs running in the countries to see how we can bring digital and STEM to the youth, but also how we can include more the elderly people in the digital space. We also have a lot of program on environment alongside the whole DT objective by reducing our CO2, increasing our energy efficiency, and making sure we also have more recycling, less waste. Quite a strong program on those elements as well. Let me come to network, because I think network is a very important element. We have already done quite a bit on network. We have currently 98% coverage on LTE. We have already 22% on fiber, but we want to go further. If we see here, we want to become the undisputed fiber leader in our footprint. We want to do that by rolling out fiber in several countries. Why do we do that? Because we think fiber is very good economics in our country. We have been able to roll out fiber in 2020 for less than EUR 400 per home passed. That gives us quite good TCO and quite good payback on fiber. Our objective is to really further roll out fiber. We will complement that with partnership. You have countries where there is already quite a lot of fiber. For instance, like Poland, that country, we will not try to overbuild with fiber. I think this would not be very sensitive and sensible to do that. We will do a whole buy with people that have already deployed fiber. We will have a hybrid model about own fiber rollout, but also partnering where it makes sense. Our objective is to have 40% coverage of fiber. We have an objective of 10 million own fiber. We will complement that by 4 million-5 million fiber that we'll buy in whole buy deals. Our utilization rate will even increase to 33%, where we will then have at least 3 million households connected to fiber. Quite a strong program on the fiber. On the mobile, we are very often mobile leader in the country we are in. We want to stay mobile leader. We will further roll out 5G. We have already secured spectrum in a lot of our countries. Most of the country, we have been able to buy 5G spectrum. We will deploy 5G along the renewal cycle of our RAN and our radio units. We will make sure that we stay ahead of competition. We have an objective of 75% coverage for 5G, but we will also make sure that we retire the 3G to increase capacity for 4G and 5G. We also very much focus on monetization of 5G. We will do that by putting the 5G where there is capacity needs. We will do that where we put 5G in some rural area where we'll be able to bring fixed mobile substitutions or fixed wireless access to customers. We will also monetize 5G in the B2B area with campus network, with further scaling IoT. One of the very last but strong pillars of growth is everything around digital. We have been able, over the past year, to really build an impressive digital factory. I can say it because I tried to build that in my former job. I can tell you, I have been very much impressed by what has been built in the EU segment in terms of architecture. We have a harmonized API layer where we can connect with all the countries. Serving 10 countries, and hopefully quickly 11 country and even 12 country when the Netherlands and Germany will try to move into the same platform. On top of that, we have really been able to build new type of application, new type of platform, which are state-of-the-art, and where we build them once and we expose them to all the countries. Instead of speaking quite long here in front of you on that chapter, I propose we just watch the video and see together what has been done and how we want to move forward with that one. Our IT approach in our 10 European natcos was decentralized and fragmented. We took this opportunity to leverage our multi-country strategy through a centrally developed experience ecosystem, 1XP of products, capabilities, and platforms. The foundation of our borderless ecosystem is our harmonized set of APIs and microservices connected to various natco systems. We have scaled these white label solutions across the country, where they are adapted to the local needs. Using this foundation, our in-house team built multi-instance products like One App, One Shop, One Broadband, One TV, One Campaign, and One Learn. Today, this experience ecosystem powers 30% of new products and services activation. Customers are served with over 1.3 billion banner impressions that provide personalized recommendations. So far, we have processed over EUR 1.2 billion in payments on our highly rated and trusted platforms, where we enjoy a 20% higher NPS. With this experience ecosystem, we improved time to market, simplified our systems while providing our customers with a better digital experience. Let us walk through some of the core pillars of our 1XP ecosystem. One App, now used by over 60% of our customers every month, enables business and private customers to do everything from adding or making changes to their services, paying their bills, prolonging their contracts, monitoring their data usage, to accessing parental controls for their routers. Our television service provides best-in-class hardware with an emotionally engaging design on a cloud TV platform, providing our customers with a seamless content discovery and integration. Our broadband utilizes the RDK framework to deliver the best internet experience with Wi-Fi 6, mesh extenders, cyber security, and tri-band hardware. With our digital platform, we are now enabling complex interactions and centrally aided customer journeys. We are now reimagining our services from basic and reactive to predictive and proactive, while setting the foundations to provide a seamless home experience and even go beyond the core. Our experience ecosystem will allow us to connect with our customers in a unique and personalized way in this digital age. The best is yet to come. I think quite a strong video that really explain you what we have done, but also what platforms we have to build the future. Let me go quickly through some of the elements. The first one was everything around digital Telco. You've seen is the OneApp. It's how you manage your products, your contract, how you do payments. From there you can imagine to build a lot more services in there, and that's really a route that we'll be looking at. The second pillar was everything around broadband. We have one firmware for all the countries, it means that we can get quite some advantage in procurement. On top of it, we have the RDK layer, which enable us to build a lot of services on top of that. You've seen some of them, parental control, guest Wi-Fi. From there you can imagine that you can build a lot of different home solutions on that platform. If we look at TV, the same. One firmware for Europe, building on the Android TV platform. From there, you are able to really get one of the best UI, aggregated content, voice, search engine, which are harmonized and where we can really offer all our customers state-of-the-art content viewing. The last bit is also a very important one. All these new digital platforms have been built with one data lake, where we are able to store a lot of data from the way our systems are working with our customers. From there, we are able, through data analytics, through AI, to really see what are potential problems, and we can do predictive maintenance, predictive action, so that we are really increasing the satisfaction of the customer because we avoid a lot of faults. On top of that, it's a way to drastically reduce the cost. That's what you see as well here on the slide. That our ambition going forwards is to further decrease cost on the call, on the truck rolls, increase the number of transactions in the app, and also have a first-time right provisioning above 95%. These are all elements that are now possible thanks to that digital layer and in 10 countries in one go, which is quite amazing. Last but not least, we can try to do the same in now the network piece. We said already a few times, I say it again, Claudia will come on that a bit more in detail tomorrow. We are able to further modernize our IT structure and our network. We want to simplify the way we work, we want to simplify our legacy, but we also want to simplify further our portfolio and our business rules to be able to automate more and also get some more benefits. The same is true on cloud. The more we will put on cloud, the more we will be able to harmonize and to automate. This should bring us to around 42% workload in the cloud by 2024. Another EUR 300 million reduction in costs and other elements like four of our NatCo that will already be on 5G standalone by 2024. A last topic I wanted to highlight with you is everything which is about capital allocation and portfolio. There has been quite a lot of work that has been done to strengthen our portfolio. We have gone out of several geography. You see here Albania has still been done, and we are in the process of closing the deal with Orange to sell our fixed business in Romania. That has enabled us to reinforce ourselves in other countries where we needed more capital. The first one, which is a very important one, is the merge we have done with UPC in Austria. Through that, we have been able to bring our EBITDA margin from a 34% to above 40%, thanks to a lot of synergies, both in cost and in revenue. In Poland, as I said, we have been able to sign whole buy deals, mainly with Orange, but also with several small player, where we now have access to more than 4 million fiber households. As from beginning of this year, we are really accelerating the fixed mobile conversion strategy into the country. You probably have seen that in the first quarter, we have already been able to have several thousands of new FMC customers in the country. Last but not least, Czech will be a bit of a hybrid model. We will roll out fiber ourselves. We have done some small M&A, but we will also do partnership deal because in Czech there is not so much fiber in the ground. We still need to build it, but we will build it together with some partner like the agreement we have done with CETIN to exchange some fiber build-out, which give us further access to fiber going forward. All that very disciplined capital allocation and capital management has enabled us to significantly increase our return on capital employed. You see here three basis points extra on the ROCE between 2017 and 2020. If we look forward, I really believe that we can still further improve ROCE, further decrease cost, and further grow, mainly because we have a lot of synergies. I come back to what I said in the beginning. I really believe in the power of multi-country synergies in the new era we are entering. We need, of course, a culture that allows that. We have built a next chapter strategy together with the country, and there is a strong willingness to go there. We see that we can have competence center which serves the whole region. We have, for instance, 300 people in our digital lab in India helping us drive the digitization. We have this data lake where we have common data analytics, AI model that serves the whole region. We are able to develop products, develop capability once, we roll it out to countries. We are fostering today a lot of exchanges of best practice within the country. We deploy playbook whereby we do it in one country, and then we see how we can have repeatable models in other country. I think all that should really change a bit the game going forward and really enable Telco to drive more synergy, more speeds to market, more cost reduction in a multi-country approach. That's then my last slide before we come to the ambition level. I think, I hope at least, I've been able to convince you that Europe is probably a bit an unknown or under-evaluated jewel within the DT footprint. That we are strongly growing, that we are strong in execution, we are growing in customer, we are very strong in cost reduction, we have a highly digital infrastructure we can leverage. We have strengthened our portfolio. We are investing a lot into fiber. We are investing in 5G. We have secured the spectrum in most of the country at very good conditions. We still have a few country to go. We also think that we will be able to get spectrum at very decent price. This all enable us to continue to grow. We have 13 quarters of growth behind. We want to further grow, and we commit to a higher figure than on the last CMD. We want to have an EBITDA growth between 1.5 and 2.5%. We have a very strong cash generation, and I think that's very powerful that we will even increase going forward to 57% of EBITDA. With a stable CapEx, it will give us a cash growth of around 4%-6%, so quite a significant number. For the first time this year in 2021, we will have a Return on Capital Employed that will be superior of the weighted average cost of capital of the region, and we will further grow into ROCE going forward. I think a quite strong region, a quite strong segment that has proven to be able to do the turnaround, where I'm very convinced we will be able to further deliver growth and deliver value for DT. If you look at our commitment, I think I've been through most of them during the presentation, we have strong commitments in terms of customer centricity, in terms of network. We have strong commitment into financials. We want to have revenue growth above 1%. We want to have EBITDA growth between 1.5% and 2.5%. We will further reduce IBC by EUR 300 million. Our cash CapEx will be stable, even though we want to continue to grow fiber and 5G. We will reprioritize the CapEx, and we have a ROCE that will be higher than the WACC. This is my story for Europe. I hope that I've been able to convince you about the power and the growth ambition of Europe, and I was very happy to be able to bring that story to you. Thank you. Great. Thank you, Dominique. Sorry. I think Europe is just a fascinating story, really. When I think about it, and if we really look at it in isolation, it really strikes me as one of Europe's most attractive telecoms operators, size and the level of digitization, the level of network penetration with fiber, and the growth. I think that a lot of it all stacks up, really. With that, we come to Q&A. We start with George. I can see you. George, the man from Greece. I would rather the little island next to it. Okay. George, can we have your question? Perfect. Thank you. I have two questions maybe. The first one is around portfolio optimization. Obviously you are now in the process of exiting the fixed line in Romania, but you still have a mobile operation that's a bit sustained. Also, I think from your businesses, maybe Poland, the returns are not as good as some other countries, and I think you have some issues maybe with the vendor changes that may come in that market. If you can run us through how you're thinking about other actions you can take around returns in some of these markets and where your focus is in terms of optimization. My second question is on the European Recovery Fund. I'm guessing for a lot of these countries, this could be a major event. If you could perhaps give us an idea of the scale. Where you think you are well-placed to win some of these projects and actually benefit from that. Finally, if we can get an idea of what the bottom-line impact is, because it is hard for us to know if these digitalization projects are high cash flow projects for a telco or whether a lot of events have been lower gross margin revenue flows. Thank you. Okay. Thank you, George, for your questions. I think, yes, Romania, we are exiting the fixed business. We are selling it to Orange. We will keep the mobile business. I think we have proven certainly in the Netherlands that we are able to grow and to manage an attacker position on the mobile segment. For the time being, when the closing will be done, we are currently preparing a plan to really see how we can further scale the mobile and have a position which will more be an attacker position in the Romanian market. That's currently where we are in Romania. Concerning Poland, I think Poland we have a strong position. Some people say we are the number 4 on the market, but we are the number 4 with 20%, so it means everybody is relatively close to each other. I think what we are currently missing in Poland is indeed the fixed mobile convergence opportunity. We are really building it. We have now the whole buy deal that has been finalized with several partners. We are starting to have communications on the market to really try to scale it. I think Poland is a country which for me is still a very great opportunity where we can further grow, and it will be one of the growth engine going forwards in the region where we want to of course keep and increase our mobile positioning, but also complement it with a strong FMC positioning. Concerning operators and supplier, this is something we need to discuss when there will be the auction will come and then when the government will decide about their cyber act. I think it's too early to give any indication on supplier in the country. Your second question, I think, was on the European Recovery Fund. I think there it's a big opportunity, and as Rémy said, we don't want to oversell it because the funds are there. In every country, we are now going through a process where we have to apply for some funds. I think Greece is probably one of the countries where it's most advanced. We will definitely use some of the funds to build infrastructure, to further build fiber in more remote area that's currently ongoing. We are also certainly in Greece looking at using that, and not only in Greece, in the B2B area where we have strong position like in Hungary, like in Slovakia, Greece, even Croatia. These are all countries where we are former incumbent or B2B position is quite substantial. When you talk about digitization, there is quite a lot of opportunity to partner with public sector and further drive digitization. That's certainly one of our key elements in growing in the B2B area next to the three countries I have highlighted where I think we can still grow even a lot in the enterprise market because we are sub-scaled. Your last one is the bottom line impact on the digitization project. It's difficult to say. What I would say is that probably two-thirds of the IDC savings will come from digitization and waste reduction. It's quite significant. We are looking at EUR 300 million IDC reduction going forwards and ballpark, I think two-third of that reduction should come from digitization. You know for me, digitization is not only a tool to reduce cost, it's also very much a tool to enhance customers' experience. That's great about digitization because you really can do two things at the same time. You improve your customer experience and you decrease cost by decreasing waste. I think that's really what we want to do going forwards with our digitization opportunity. Great. Well, thank you, Dominique. The next question is from Charlotte. Hello, Charlotte. Good to see you. Hi. My question is around competitive dynamics and competitive intensity. Would you provide some more color on the markets where you see competitive intensity particularly increasing or decreasing? I think it builds on the first part of George's question as well. Thank you. Yeah. No, I think as I put it forward, most of our markets are three MNOs markets. Where you have of course quite high competitive intensity in all markets. I think you also have a lot of markets where the output is still very low. I see that personally today as an opportunity because what you see as well in a lot of markets is a huge demand from consumer and from enterprise for more data, more capacity, more coverage. There is competitive dynamic, but there is also a huge potential to increase the value of the market. I think somewhere it is relatively healthy competition. It's competition to serve customer with more product, more capacity. Where you see more intense competition is typically Romania. That's probably also one of the reason why we have decided to sell the fixed business and because if we would need to compete there, we would probably have to put quite a lot of money in upgrading our fixed network. The output is relatively low, it's still low with Digi being an operator which is quite aggressive on the market. There we have decided indeed to move out of the country to be able to invest in other. You could say Poland could be also more intensive because Play has just been bought by Iliad, but so far we have not seen any increase in competition. I think there as well everybody is looking how can we further bring fiber to the country, how can we further bring high-speed internet in the country? It's I think again more a healthy competition on trying to serve the customers on the next step. I think all in all, the markets are relatively healthy with strong potential for growth as the output is low, the demand is high, and the regulator and the government are now more and more looking into digitization of service, rolling out of infrastructure as an important way for them to be recognized as good leader. It's not anymore getting money out of the auction or out of the industry. It's much more trying to roll out better infrastructure, better service to serve their customers or their citizens better. I think we can now really play on that and get value out of that in most of the countries. I'm very optimistic about the potential of the European segment. Excellent. We have one more question from Jakob. Jakob, good to see you. Good to see you. Hey, guys. I had actually two very short questions, if that's okay. Firstly, just on the revenue growth side. You're guiding for 1% revenue growth, which is very similar to what you did over the previous 3 years, even though you've got what I take as a reasonably sizable tailwind from roaming. Can you maybe just give a little bit of context on the revenue guidance, which looks a little bit conservative? Just secondly, I'd be interested in just hearing your thinking around tower ownership in the region. Is that something that you're a bit more flexible on and that's perhaps one of the ways where you could relatively easily drive up your ROCEs in the region? Thank you. No, thank you, Jakob, for the question. I think on revenue, it is true that roaming has impacted us in 2020, EUR 130 million, so it is quite significant. We will, of course, have some tailwind from that this year and probably next year. Next to that, we also have quite a lot of NTR cuts, which are still coming in from mid of July, mid of this year, July this year. I do not think it is such an impact because it is in percentage high, but in the value, it is relatively low. That is anyhow something which will impact a bit the service revenue, and the guidance is on four year. We have always a tendency, and DT, but also myself, to try to really deliver against the guidance to make sure that we potentially even over-deliver, and we have a four-year period. I think for the next two year, we should probably be a bit better. Going forward, we have to be prudent and see what happens in the market. Around 1%, I think is a very decent figures, and we will do everything we can to over-deliver on that. On tower ownership, I think it's a good question. We have done a tower Co in Austria. We can look in at other countries, and perhaps you'll hear a bit more about that tomorrow. I don't want to reveal too much today and leave something for Thorsten to tell you. Everything we will do, we will do towards DT Tower Co. It could be a way to improve ROCE and other, but it will not be a leverage that we will do to third party. I think the strategy of DT is really to build a strong tower co internally with DT Funkturm. If we do a carve out of tower in Europe, it will be to DT Funkturm, and then we will see as a group what we will do with our tower assets. We will not start to do some individual tower carve out to a third party in Europe. Great. Thank you, Dominique. Before I let you go, maybe one question from me. Yeah. Now that you have, of course, you worked there for Proximus before, I just wanted to see how does it feel to work in Deutsche Telekom in this group? How to work in the European portfolio? Any impressions that you can share? No, I think it's very different. I think DT is, of course, a much bigger group. What I've been impressed is that DT is a very diverse and international company, probably much more than people sense when you look at it from the outside. I think it's a much more international and diverse culture. I think in Europe, I think it's very much a hidden jewel. I think Europe is a great asset. There is not a lot of publication, so it's difficult to follow, I guess, as analyst or investor. When I am here and looking at the country, I think there is a lot of potential, and I think DT is so well-placed with its transatlantic foot in the U.S., foot in Europe, and in Europe, there is a lot of focus on Germany, but there are a lot of other countries. I think when we will be able to get even more scale and more harmonization within the European footprint, it is really a base from which I think we can really deliver growth and even potential further growth going forward. Acceleration. Yes. Okay, very good. Thank you very much, Dominique. Thank you, Johannes. That brings us to the last session of this Capital Markets Day. First day of the Capital Markets Day, I should say. Capital Markets Days, it is. Now we are welcoming our U.S. team. We'll be joined by Mike Sievert, CEO, Peter Osvaldik, CFO, and our very Neville Ray, the President of Technology. At the end of their presentation, Jud Henry, my colleague in Seattle, will host a Q&A to which you can register in exactly the same way as you have done the whole day. I'm happy now to announce T-Mobile US Dream Team. We have an amazing opportunity to take this thing we've created, the Un-carrier, and supercharge it. We fight on behalf of consumers, and we keep at it until we get it right. We kicked everybody's ass. It's not just the coming together, it's what happened when we came together. We built our extended range 5G network. Now we're piling on a deep layer of ultra-capacity 5G using 2.5 gigahertz. Crushing our goals. Expanding our ultra-capacity 5G to cover 200 million people by the end of this year and counting. We're celebrating over here at T-Mobile. We're going to take this race and run way ahead. Hey, everyone. It's so great to join all of you for the DT Capital Markets Day. Thanks for being here. When I was last with you back in May of 2018, it was just one month after we announced our merger with Sprint, and we shared some big aspirations for the combined company. Today, I'm happy to be back, just over a year since we closed our merger, to share our progress and our plans for growth and value creation. While I wish we could all be in Bonn together this year, I'm coming to you this time virtually, as is Neville Ray, our President of Technology, and Peter Osvaldik, our Chief Financial Officer. Let me just start by saying how proud I am of our team and of how our employees have united as a combined company to serve our customers and deliver outstanding business results during unforeseen times like this past year. Our first-year results as a combined company say a lot about our people and about our culture, because many mergers really struggle in the 12 months right after closing. We've persevered through a pandemic, an economic crisis, and significant social and political unrest, and this team rallied together around our love for our customers. Our success reinforces the fact that we've assembled the best team of leaders and employees in the industry, and it's something that continues to set T-Mobile apart from the competition. 2020 also marked the true beginning of the 5G era in wireless. T-Mobile's already the demonstrable leader with the largest and fastest and most reliable 5G network in America. I'm here to tell you why our network advantage will last for the entirety of the 5G era and beyond, while translating into strong business results that we believe will result in extraordinary shareholder returns. Our mission is to be the best in the world at connecting customers to their world. Our strategy to get there isn't complicated, but it is differentiated. We plan to simultaneously deliver the best network and the best value for businesses and consumers, something that has never been done before in our industry and something that only T-Mobile can aspire to as the leading pure-play wireless company. Customers shouldn't have to choose, and at T-Mobile, they don't. Add to that the differentiated customer experiences delivered by this customer-loving team, and you have a formula that allows us to pursue our simple yet audacious vision to become number one in customer choice and number one in customers' hearts. We'll get there by focusing on three strategic pillars. First, building the world's best 5G network and delivering product leadership by turning our combined network and spectrum assets into a truly superior wireless experience, an experience that T-Mobile becomes famous for, and one that's here to stay. Second, unlocking the potential of our scale and the superior cost structure that results from our network assets to deliver ongoing value leadership while also expanding margins. Third, delivering the best experiences from the best team as we build on our Un-carrier strategy to make customers happy by rewriting the rules of the industry in their favor. As we deliver on these strategic pillars, we're focused on some simple ambitions, the outcomes by which we'll be measuring ourselves and by which we think you'll be measuring us as well. They showcase our balanced approach to growth and profitability. First, our goal is to consistently and continuously profitably lead this industry in growth, particularly once the major elements of our integration are behind us. Second, translate that growth into an increasingly valuable business, focusing on synergies, scale economies, and cost transformation. Third, we'll do all this without borrowing from tomorrow. We'll continue to make the right decisions and investments to position T-Mobile for long-term success. For T-Mobile, all of our short and long-term goals start with building the best 5G network. It's the underpinning of virtually everything we'll talk about today, and our build is tracking well ahead of schedule. It's clearly differentiating T-Mobile as the undisputed network leader in the 5G era. T-Mobile already offers the largest, fastest, and most reliable 5G network in America, delivering 5G across more geographic coverage than AT&T and Verizon combined. Our ultra-capacity 5G, utilizing our spectrum depth of 2.5 gigahertz mid-band and above, has been rapidly expanding. While Verizon's 4G leadership may have helped them over the last decade, T-Mobile is positioned to be famous for our network in the 5G era and solidly take that crown for years to come. That's a perception shift that we're laser-focused on at T-Mobile, and we're already starting to see the tide turn. Because of our merger, we're essentially funding this entire network build through merger synergies. In a few minutes, Neville will dive into the value our network represents to customers and how it serves as a linchpin for our business. Now let's talk about the work we're doing to expand our addressable markets and fuel growth for years to come. Our expansion into smaller markets and rural areas across the country will open up massive potential as our network has expanded significantly in the last few years, delivering LTE coverage on par with the other national carriers and 5G coverage that's miles ahead of the competition. When we say smaller markets and rural areas, that represents 50 million U.S. households, almost 40% of all households in America, where our market share is in the low teens today, compared to our national market share of roughly 30%. We plan to significantly expand distribution into these areas to finally bring real competition. Our strategy to unlock this opportunity will require growth in areas where we already have both the network and distribution assets today, as well as growth in areas that will receive these investments in the future. Building the best 5G network throughout rural America is foundational to unlocking consumer switching, we plan to expand our physical footprint in smart ways. We'll build hundreds of new stores in small towns and rural areas over the next five years and add significantly more points of distribution, including entering national retail channels like Best Buy and Walmart, as well as leveraging our recently launched Hometown Experts, an innovative and cost-effective initiative to recruit individuals dedicated to assisting communities too small to support the cost of a full retail store. Combined, we expect these efforts will help T-Mobile to grow our share in smaller markets and rural areas to nearly 20% over the next five years. Another key area of focus is the enterprise and government sector. After having successfully redefined consumer wireless for good over the last eight years, we're bringing that same Un-carrier attitude to businesses. Our share today in the large enterprise space is only around 10%, and we're already starting to win in this space. There are over 50 million corporate liable lines today, which is a massive opportunity. We like our game plan here because it's building on a strong 2020 performance. With our 5G leadership, businesses no longer have to make the trade-off between the price they pay and the quality of the network. They can have both. This includes our recent WFX launch, an innovative suite of products that are ideally suited to help companies adapt to the hybrid workspaces of the future with fully featured secure calling and broadband products, and the peace of mind of having unlimited data for those companies that have still been handcuffed with pooled data plans by the carriers. We see room to run here with a massive market share potential running up to 20% over the next five years, which is still quite under indexed versus fair share. The B2B space is a great example of the benefits of a strong partnership with Deutsche Telekom, affording us a unique opportunity to capture transatlantic synergies by leveraging the assets of DT and T-Mobile to offer solutions to global companies. Looking beyond traditional mobile wireless, one of the immediate opportunities is home broadband, where we're bringing competition to an estimated $90 billion market. After successfully growing our 4G LTE home internet pilot throughout 2020, last month was the official launch of T-Mobile home internet, a simple, fast broadband service leveraging our expansive high-capacity 5G network to give customers a real choice in high-speed internet. While others in the industry are still in the planning phases of what wireless home broadband could look like in the future, T-Mobile 5G reaches more than 30 million eligible broadband households today. Our focus is on a great service at attainable prices because our business plan isn't burdened with significant capital costs, given that the network is funded by the mobile business plan. We're excited for everything ahead here in this space, and we expect to serve seven to eight million customers over the next five years. We're also rapidly expanding our addressable market with prime consumers who value network quality and who may not have considered us previously due to legacy perceptions. For example, earlier this year, we launched our Magenta MAX plan, giving customers the industry's only truly unlimited plan and putting the full capabilities of our ultra capacity 5G in the palm of their hand. The early indicators that we see from Magenta MAX customers underscore that the most discerning consumers increasingly consider T-Mobile when we offer the right plan that really showcases our leading 5G network. We'll unlock customer growth by both growing the total number of customer accounts and deepening these customer relationships with more premium services and additional connected devices to consistently and profitably grow both our core business and exciting new businesses. T-Mobile continues to win customers because of how our company creates experiences, and we're relentlessly looking for ways to simplify and optimize the customer experience. Our focus is on further enhancing our digital capabilities to provide even better options for customers who, after a year of the pandemic, are showing a willingness to work with us digitally in ways they didn't before. For us, it's all about serving the customer how they want to be served and building on our already industry-leading, award-winning customer service experience, which is our secret sauce. Ultimately, we believe that when you provide customers with the best network and the best value and the best customer experiences, they will become loyal ambassadors for the brand and further drive our growth and long-term success. Let's talk about merger synergies and our financial performance. I am incredibly proud of the team for being able to execute and perform in a competitive marketplace while simultaneously driving integration faster and better than expected to capture our merger synergies and deliver value for both customers and shareholders. Our five-year growth and financial plan, built on the conservative market assumptions I've shared with you here, creates enormous potential shareholder value. Peter will go into greater depth on these topics in a few minutes. Now, before I turn it over to Neville and Peter, I want to provide some insight on another important focus area for T-Mobile, making an impact that matters for our employees, our customers, and the communities that we all serve. Throughout the merger, we talked about how we'd not only become a bigger company, but also a better one, using our network scale and resources for good. Our marquee initiative here is Project 10Million, and it's focused on the audacious goal of helping to connect every single student and eradicate the homework gap in the U.S. so kids can get the access they need and the education and equal opportunity that they deserve. We launched this unprecedented $10.7 billion initiative last year and then enhanced it to address the more pronounced inequities that have arrived in the wake of the COVID-19 pandemic. We focused heavily on our people over the past year as well because we believe only the best team working together and inclusively can deliver the best experiences. With the world watching, America has experienced significant social unrest over the past year in the quest to achieve greater racial justice. At T-Mobile, our commitment to diversity, equity, and inclusion plays an integral role in our culture, and it always has. Last year, we launched our five-year Equity in Action plan, which reflects the ways we're embedding DE&I into our culture as the Un-carrier. We continue to build diverse talent in our leadership ranks to reflect our highly diverse employee group and the communities we serve with more ambitious programs in this space than ever before. In addition, we continue to follow through on our long-standing enterprise sustainability commitments. T-Mobile was the first major telecom to commit to 100% renewable energy back in 2018, a goal that we expect to achieve this year. In recognition of our efforts, we were recently named to the CDP's A List for Climate Change, the gold standard of corporate environmental transparency. We've created ambitious goals to positively impact the planet, and we're immensely proud to be the only U.S. telecom given this top listing. Okay. Now let me turn it over to Neville to tell you how T-Mobile's 5G network is leading this industry into the 5G era and how we are prepared to sustain and expand our network advantage for the duration of the next decade and beyond. We have been able to create a great network that's not only fast but broader as well. It's an engineering team. We want to maintain and stay ahead and lead the industry. This ultra capacity on top of the extended range is what really makes T-Mobile different. We have the networks, we have the spectrum, we have the people, we have the technology. Largest, fastest, and now the most reliable too. It's so great to be here today, and I'm excited to update you on our network journey and the progress we continue to make. There has never been a more exciting time in the growth of our network than right now. We are uniquely positioned to become famous for network as we continue to combine our superior assets and execution to deliver a demonstrable and sustainable 5G and overall network advantage. There are five major and compelling reasons why our network leadership position today will be a durable advantage into the future. Let me walk you through these one by one. First, we have a clear 5G coverage leadership position today with 5G coverage in all 50 states and Puerto Rico. Our extended range 5G provides reliable coverage where customers live, work, and play. Just less than a year after reaching nationwide, we now cover 295 million people with 5G across more than 1.6 million sq mi today. That's nearly four times more than Verizon and over two times more than AT&T. We're expanding our extended range 5G to over 300 million people by the end of this year, and we expect to cover 97% of all Americans by the end of next year. At the same time, we are the only operator to have deployed dedicated low-band and mid-band spectrum, delivering on the true promise of 5G with our ultra capacity 5G delivering game-changing speeds averaging 325 Mbps and reaching 140 million people already in 2021. We're expanding our ultra capacity 5G at a remarkable pace to bring those game-changing speeds to 200 million people by the end of this year, expanding to approximately 250 million by the end of next year, and on our way to bringing ultra capacity to nearly 90% of all Americans by the end of 2023. Multiple independent third parties, including Ookla, Opensignal, and umlaut, all recently gave exciting accolades to T-Mobile's 5G network based on real customer usage from millions of device measurements. We just continue to pull away from the pack. Opensignal recently released their latest report showing that T-Mobile customers' average 5G download speed increased by 23% since the beginning of the year, while speeds on other networks stayed virtually unchanged, widening the gap to competitors as T-Mobile now has nearly 50% faster speeds than Verizon and 30% faster speeds than AT&T. All signs point to one clear fact, T-Mobile is America's 5G leader. We're the largest, fastest, and most reliable 5G network. Second, our network upgrade program is fueled by synergies from our network integration. This integration program, combining the assets of Sprint and T-Mobile networks, has presented the opportunity to not just combine the networks for LTE services, but upgrade them at the same time for 5G. Unlike our competition, who face incremental 5G costs in all that they do. Third, we maintain a meaningful spectrum advantage following the FCC's recent C-band auction, where we added to our ultra-capacity 5G in urban and suburban areas that the spectrum is well-suited for. We came out of the auction with the best mid-band spectrum assets by far, while our competitors spent unprecedented amounts trying to catch up. Our mid-band is mostly comprised of frequencies with superior propagation to C-band, which means they are superior not just in reach, but also in deployment costs. With this recent C-band spectrum auction complete, we are well-positioned to maintain our 5G leadership for the duration of the 5G era, not just for a year or two. Our position and advantage will be longstanding. Bringing all of this together, our 5G leadership is even more clear when you combine both our spectrum and coverage deployment plans as contrasted to our major competitors. Fourth, through this capital-efficient deployment, we have the financial capability to smartly invest and maintain this network advantage, as Peter will describe in a few minutes. We are delivering faster on this deployment and a broader rollout to the 2.5 gigahertz spectrum for less total capital than originally planned in the merger announcement. This is as a result of material procurement savings from new agreements with key partners and significant savings from an efficient deployment engine, including adding multiple spectrum bands on a single site at the same time, as well as more effective controls via a lean deployment model, effectively reducing the time to deploy. Fifth, but by no means least, we have the most technically advanced network and a clear leadership edge on 5G innovation. Not only are we building the densest, deepest, and broadest network, but we are also building on our history of 5G firsts and embracing technological evolutions as they are ready to improve customer experience, lower costs, and unlock new revenue opportunities. Our network enhancement program is running at a truly unprecedented pace with thousands of radio upgrades underway each and every month. In summary, I am so excited that T-Mobile is leading what I expect will be a 5G revolution. We have all the tools to succeed, a robust plan, and a powerful team to go execute it. Let me pass the mic over to Peter. Thanks, Neville. I'm excited to get to our financial highlights, starting with a look at synergies. As you already know, we beat our own aggressive synergy targets for 2020, realizing EUR 1.3 billion, or four times what the original merger plan expected to achieve in the first year. During our Q1 earnings a couple weeks ago, we updated our 2021 synergy guidance, now expecting to realize EUR 2.8 billion-EUR 3.1 billion in merger synergies, which represents a EUR 550 million year-over-year increase in avoided costs and a EUR 1.1 billion year-over-year increase in P&L benefits at the midpoint of our 2021 guidance, helping to fund the investments in our network and growth initiatives this year. We're not slowing down. Our team's strong execution led to us updating our expectations at our Analyst Day for total run rate cost synergies of approximately $7.5 billion per year by 2024, up 25% from the original merger guidance of $6 billion. While the full original and increased run rate synergies are achieved in the same timeframe, primarily due to the timeline for avoided costs, we overachieve in each year relative to the original plan. In fact, we now expect to exceed the original $6 billion target in 2023. As we have said from the beginning, these massive synergies are unlocked with some one-time upfront costs to achieve. We continue to expect approximately $15 billion of total net cost to achieve, delivering more synergies with no incremental cost. This faster pace and increased run rate result in a new net present value of over $70 billion for shareholders, more than 60% higher than the original $43 billion NPV in the merger case, including a lower cost of capital, which reflects not only lower rate market conditions, but just as importantly, our scale and performance driving a lower cost of capital as demonstrated by our capital markets activity. Our team's strong execution and our strategic plan is now expected to deliver financial results that exceed both the original three to four-year and longer-term targets that we provided in the merger announcement. For reference, we are using 2023 as the comparable midterm point, as it is the third full year following our actual closing date. As we think about the long-term projections for the business, we are using 2026, which is actually earlier than the original long-term guidance milestones, which assumed seven to eight years out. Of course, our ambitions include continued growth in the business beyond 2026, driving a sustainable increase in shareholder value in later periods, too. All right. Jumping into the numbers, and for clarity, these are on a U.S. GAAP basis, which will differ slightly from IFRS. core adjusted EBITDA, which reflects our underlying business performance without the noise of declining lease revenues as we de-emphasized device leasing quickly post-closing, is now expected to be between EUR 22.8 billion and EUR 23.2 billion in 2021. In 2023, we expect to be between EUR 28 billion and EUR 29 billion versus the original merger plan, which implied core adjusted EBITDA of EUR 25 billion to EUR 27 billion, a EUR 2.5 billion increase at the midpoint, driven by growth in service revenue and higher synergy realization. We expect further growth in 2024, with core adjusted EBITDA expected to be in the range of EUR 31 billion to EUR 32 billion, with additional service revenue growth and full synergy realization. Long-term, we expect core adjusted EBITDA to be more than EUR 36 billion, more than EUR 1 billion above the high end of the original merger target, driven by higher service revenues along with additional efficiencies, including in the areas of continued distribution transformation and an increasing consumer digital experience. Looking at capital expenditures, we now expect CapEx in 2021 and 2022 to be between EUR 11.7 billion and EUR 12 billion annually as we deliver our network integration milestones earlier and build a nationwide multilayer 5G network with better capital efficiency, thanks to both material procurement savings from our improved scale and deployment efficiencies which Neville highlighted. We expect CapEx in 2023 through 2026 to be between EUR 9 billion and EUR 10 billion per year, reflecting the capacity and network efficiencies we expect after having completed our network integration and be largely done with our nationwide 5G deployment by 2022. This capital plan also includes all of our expected costs for C-band deployment. This all translates into the promised unlock of significant free cash flow. In 2021, we now expect free cash flow to be between $5.1 billion to $5.5 billion. Looking ahead, free cash flow is expected to be between EUR 13 billion-EUR 14 billion in 2023, a massive EUR 3 billion or 30% increase from the original expectation of EUR 10 billion-EUR 11 billion. Again, a product of increased growth in service revenue and operating leverage, bigger and faster synergy capture, and improved capital efficiency. We see further growth into 2024 with an expected range of EUR 16 billion-EUR 18 billion, and long-term, we expect free cash flow to be more than EUR 18 billion, above the high end of the original target. Similar to our 2021 guidance, our mid and long-term free cash flow guidance does not assume any material net inflows from securitizations. While our expectations for midterm and long-term milestones are all above the original merger plan, equally exciting is that this is really a story of cumulative over-performance in every year, delivering cumulative free cash flow through 2025 of up to $65 billion, up nearly 20% from the original plan. As Mike highlighted earlier, with our increased cash flow, we see the flexibility for substantial shareholder returns, potentially up to a total of $60 billion from 2023 through 2025, all assuming a conservative mid two times core adjusted EBITDA leverage ratio. As you would expect, we will always focus on maximizing value creation for shareholders and will assess future spectrum purchases, M&A options, and share repurchase opportunities to create the most shareholder value. Of course, there is massive potential beyond 2025 as well. I couldn't be more excited about this updated plan, and I'm extremely proud of our team's ability to consistently meet or exceed the guidance we commit to. We have done that now as T-Mobile since 2013, and we have every intention of continuing to deliver on that front and maintain the trust you place in us. I can't think of a better high note to end on. Now I'll hand it back over to Mike before we get to your questions. Thanks, Peter and Neville. Great job. Okay, we're eager to take your questions, but let me leave you with a final thought. As you heard in our remarks, we believe T-Mobile is uniquely positioned with this once in a career value-creating opportunity. We have a great hand, and to me, that means the industry's best assets, a clear and simple business strategy that's already proven, lots of room to run, exciting new businesses where we have permission to win, and a team with a track record of delivering. Add to that a strong balance sheet and a compelling financial plan, the result is a business with massive cash flow and value creation potential. On top of it all, we have the opportunity to continue to change and improve this industry yet again as the Un-carrier, to the benefit of consumers and businesses everywhere, to be the best in the world at connecting customers to their world and to earn their hearts in the process. I am tremendously excited about our future. While we get into position to take your questions, I'll leave you with this video, a collection of a few words that form our brand manifesto, words that say everything you need to know about who we are, what makes us different, and where we're going. Take a look, and we'll see you live in a minute. Thanks, everybody. We love our customers. It's who we are. Our unstoppable mindset sparked a revolution, putting people first, treating them right, and changing the rules in their favor. As the Un-carrier, we changed wireless forever. We led by example and forced an entire industry to follow. That was just the start. This revolution is far from over. Now more than ever, customers need someone fighting on their behalf, a company with a beating heart. I love you. that sees people over numbers, a company inspired to change the world for the better, a company that celebrates differences, knowing that we are better together than apart. Today, our success makes possible what was impossible before, a transformative network experience connecting everyone everywhere. Happy birthday, Mom. With the highest capacity network in U.S. history comes the best value in wireless history, eliminating the false choice between a great network and affordable access. We don't wait for change. We make it. We use our brand, our people, and our network as catalysts for good. Our future is in redefining wireless, not what it is, but what it will be. In bringing choice, value, and simplicity to customers in entirely new ways. In reimagining a connected world for all without limits. We are far from done. We're taking this revolution to the next level, becoming the best in the world at connecting customers to their world and earning a place in our customers' hearts forever. We are T-Mobile, the Un-carrier. We won't stop. All right. We're excited to get to your questions, so let's get right at it. It looks like we've got some names queuing up already. Let's take our first question from Usman Ghazi from Berenberg. Hi, guys. Good to see you, and thank you very much for the opportunity. It's always great to see the excited presentation from you guys. The question I had was on one of the comments you made earlier about investing to create that network perception change in the U.S. Specifically, I don't know whether this is the right perception. I'm obviously sitting in London, so I might have gotten this completely wrong, but it seems that Verizon obviously has a very close relationship with Apple. At the iPhone launches, you see them, Verizon there. On the TV when I'm watching, there's a lot of joint advertising going on between Verizon and Apple. I'm just wondering, at first it seems surprising, obviously, because it's pretty clear you have the best network and you're extending that lead on 5G. Is there any chance of T-Mobile US being able to break that triangle that Verizon has with Apple, obviously, because of the captive 4G base that they have? Is it going to take more time? Yeah, thanks, Usman. Great question. Thanks for joining. It's very interesting. I'll answer it two ways. First of all, as it relates to the big companies, I'd say T-Mobile, AT&T, and Verizon all have great partnerships with Apple and the other major providers. No concerns there. I wouldn't overread Verizon appearing at their event in any way. We all do the exact same amount of joint advertising and co-development and so many things. Your question has another premise to it that I think is very important, which is Verizon has established, for over a decade now, brand fame around being the best network in the U.S., and that's very clear. That's something that you heard us remark on in our upfront remarks, that we know our opportunity is to turn that around. Let's face it, in 2010, at the beginning of the 4G era, they jumped out in front and AT&T jumped out with the iPhone, but Verizon jumped out with LTE, and they got after it faster than anybody else, and they claimed that mantle of network leadership in the 4G era and then rode it. They made the rules of the 4G era. Those rules, by the way, were terrible. Things like contracts and overages and roaming when you leave your country and treating people poorly and so forth, high prices. We came along and decided to try and change those rules, and we were always in catch-up mode on our network during the 4G era. Today, in the 5G era, T-Mobile has the opportunity to make the rules, and those rules are going to be customer-friendly, and they're going to be built around a brand that in the 5G era claims the mantle of network leadership. That's so important. Right now, we have 5G leadership, way ahead, as Neville just got done describing to us. We have to translate that into perception of overall network leadership. That's going to mean working with our partners like Apple, to the premise of your question, but it's also going to mean taking advantage of big expansions into the places where we've historically been behind. We already get good credit in the big cities for having a good network. In the huge swaths of this country, 40%, 50% of the country that are smaller markets in rural areas, we've been way behind. That's a massive tailwind for our business as we start to come up the curve with the demonstrably best 5G network in rural America, as we talked about in our remarks. We're taking this very seriously. We know we don't just have to be the best. We have to get credit among businesses and consumers for being the best, and our strategies are geared around that. Thank you. You bet. All right. Excellent. Let's take our next question from Joshua Mills from Exane. Hi, guys. Great to see you, and thanks for the questions. There's two from me. The first is just related to what AT&T has talked about earlier this week with the deal they've done with Time Warner, the decision that they want to accelerate in CapEx, market share gains, et cetera. You've talked a lot about how 5G is an opportunity or a window for you to win share and change perception. I guess that a lot of the work you've been doing is to try and extend the window on 5G leadership and use that as an opportunity. My question is, firstly, does the AT&T deal and the cash they've unlocked perhaps even narrow that window because they'll be spending more on CapEx or make the market more competitive in the near term if they choose to deploy more cash into handset subsidies? The second question Go on. Sorry. No, please. Go on. Yeah. The second question is just, we've heard a lot today from the European side of Deutsche Telekom, and I think often we look at the U.S. business and see the growth returns and are quite envious. A key theme that's come out of today's presentation is the importance of convergence, fixed line, et cetera, in Europe. I understand the U.S. market is different, but do you see any advantage at the moment from your competitors owning fixed line? Is there any potential scenario in which you would think about either doing deals with fixed line operators on wholesale or maybe even building organically in that space? Thanks. Thank you. Those are great questions. First of all, I'll start on AT&T and then let Neville pile in. I think what we've seen from both Verizon and AT&T over the past two, three, four months, and certainly this last week with AT&T, is a journey towards both of our major scaled competitors realizing that T-Mobile's strategy of being a pure play mobile Internet company is the right one. All content and entertainment of all kinds are leaving their prior linear forms and going digital, landing on the Internet. The Internet itself is going mobile. T-Mobile, years ago, established itself as a pure play mobile Internet company and sought the best assets and won the best assets in the industry to lead the industry as the mobile Internet company focused on this space. It's a great space. This is a viable, profitable industry that's changing people's lives in big ways. Both of our major competitors have decided to wake up and try and emulate our strategy. The problem is they're years behind, and we have the wherewithal to stay ahead for the duration of the 5G era, as Neville mentioned in his remarks. An example of that would be, and I'll let Neville jump in before we get to your second question. An example of that is what Neville took you through in his remarks, which is the pace at which we're going, even with AT&T's newfound love of mobile internet, will allow us to stay ahead, especially when you apply not just the spectrum we'll have on 5G, the amount of spectrum, but the amount we have deployed on 5G. Multiply that to look at megahertz pops, as Neville showed us. The advantage that we have is massive and sustainable. Neville, maybe you can comment on it. Thanks, Mike. Obviously delighted to be here today and take the cues. To your question, Josh, on what happened this week with AT&T, finally now we see our major U.S. competitors, as Mike said, starting to look at our strategy overall as a business. Importantly, too, they're starting to mirror and chase our network strategy. We've talked for a long time about the capability of a multilayered mid-band, low-band network. Now we see AT&T coming all in on that model and plan. To just share some of the news and announcements they made, the one thing that caught my attention was that they said they would have 200 million people covered with the recently acquired C-band spectrum by the end of 2023. To contrast that to where T-Mobile is today, as I outlined in my comments, 140 million people we've covered in the last year since we combined with Sprint. By the end of this year, 2021, we'll be at 200 million people covered on that mid-band layer and a much deeper and richer spectrum layer than AT&T can accomplish by 2023. Even though they're coming after and starting to mirror and chase our strategy, we have an incredible leadership position that they now have to try and close that gap. As we talk through here, every day, our network and the performance of this network is improving, and our customers are starting to understand that more and more each week and as we move through every month. For AT&T and Verizon, there's a lot of catch-up they have to do to try and mirror and match what we can do this year inside 2021. Just to the profitability piece before we move to your question on fixed assets. Look, I think this is very good moment in time for the industry. If the premise of the question is if Verizon and AT&T have finally decided to come around and pay attention to their mobile internet businesses, is that bad for us? I'd say absolutely not. Competition is tricky only if there's no differentiation. Competition's a great thing and something welcomed by T-Mobile because our position is differentiated. The more this industry focuses on mobile, the more this industry focuses on smartphones, the more we get to showcase to people that increasingly consider whether they're with the right carrier in a more vibrant market, our differences. Showcasing our differences of being the first company in the history of this industry to be able to simultaneously offer the best value, which we can sustainably do with our asset base, and the best network, where we're ahead by several years and positioned to stay ahead. That's something that in a market that's more vibrant and made a market where there's increased switching through the efforts of our competitors, that will ultimately favor us. We think it's a very good market. It's the profitable part of the industry. That's why all of our competitors have decided to focus on it. I think that means that they understand that it needs to stay profitable, because this is the knitting. All these signs, I think, are good signs for us. Now, to the second part of your question about fixed, and we'll try to be quick here. I give the short answer then again turn it to Neville. No, we don't see it as an advantage. In fact, when the primary profit pool is mobile, as we just talked about, the advantages of owning fixed assets are a bit false. You'd be stealing from one profit pool to feed the other. The ownership advantage gets diminished. We think we can get there and have demonstrated we can get there through partnerships. We have fantastic fiber relationships all across this country. There's plenty of supply. When it comes to tackling enterprise opportunities, we're working with partners like our recently announced collaboration with Lumen. Just briefly, Neville, on whether or not not owning fiber is a disadvantage or perhaps if it's an advantage to have the flexibility that we have. No, clearly, Mike, for us, it's an advantage for us to drive our investments into our radio and our wireless network. We have just tremendous deals and partnerships out there to support our fiber delivery to our cell sites in a 5G world. We've had fiber to our cell sites for many years now. We're just scaling that delivery. We have actually decreasing price levels coming into our business while we scale the throughput and output on those links. We're very, very comfortable today with how we construct our delivery there. This is an area where, to the premise of your question, the U.S. market is a little bit different than Europe. Obviously, the trend here, we never did fully converge. In the recent moves, as it relates to media convergence, both of our major scaled competitors shedding media assets as a sign that there wasn't the promised benefit of convergence that they had sold shareholders. All right. Let's take our next question from Ulrich from Jefferies. Yeah, thanks very much. Mike, if Deutsche Telekom were to sell the T-Mobile stake tomorrow, what elements of your midterm guidance would you have to change? I suppose it's a slightly cheeky way of asking what are the tangible benefits that the parent brings to the party from your point of view, where you're sitting? Well, first of all, I'm not sure it would change anything in that I'll answer it from two perspectives. One is we've certainly been enabled by DT through the years with investment, but now we have a business that is producing significant cash flow and is able to, in recent years, acquire its financing on its own. A company that is viable on its own. Secondly, it's a business that is neither constrained by DT. Every major thing we've needed to do, we've been able to partner with and be supported by our major owner, DT. We've not been constrained yet either. What we do have right now are some terrific opportunities for synergies, as I talked about, and we're collaborating with major global companies to serve those companies together in transatlantic ways, and that's terrific. Look, DT, I think much to its credit, has run and allowed us to run the U.S. business as an independent U.S. public company with them as our major shareholder. That has allowed us to focus on our knitting in a way that's created an awful lot of success. For us, we're consolidated into DT and are looked at by DT as part of DT. They deliberately ask us and with our board, to run this as an independent company. My fiduciary is to all shareholders of our company, all shareholders of TMUS, DT included, and that's how we run it as an independent U.S. listed public company. Right. Thanks very much. Thank you. You bet. Great question. All right. Let's go to Jakob Bluestone from Credit Suisse. Good morning, guys. Thanks for taking the question. I had a question around the capital returns that you referenced earlier. I guess there's two aspects. One, can you just sort of talk us through how do you look at dividends versus buybacks when thinking about it from a TMUS point of view? As you rightly pointed out, you've got a fantastic track record of beating your own guidance. Do you think there's the potential that we could see those buybacks or those capital returns starting sooner than 2023? Thank you. I absolutely love it. You announced an up to $60 billion share buyback, historic buyback program, it's how soon can it start? Peter, can it start by 2022 and can it be bigger than we promised? Absolutely. Well, thank you so much for having us and a great partnership here. First off, I'm really excited about the massive free cash flow generation of this business, and it truly is a differentiator as we've talked about. This massive 5G network that's being built, the greenfield opportunities that others do not have in smaller markets in rural America, in enterprise, and the unlock of synergies during that whole timeframe allows us to have expanding margins, and by the time we get to our midterm guidance, have the best conversion of service revenue into free cash flow, which helps unlock and allow those massive potential shareholder returns. A couple questions you had. One is, how do we think about it? Would we do share repurchases or dividends? Right now the way we're thinking about it is our intention is to continue to be a growth company, both in the midterm as well as the long-term guidance. As we see it right now, we're definitely thinking the flexibility that share repurchases versus a dividend offer would probably be the way we would initiate shareholder returns. Of course, assess it during that period and go forward. In terms of can we start early? As you know, right now the focus point is building this massive network and spending the cost to achieve funds to unlock the synergies and the integration as rapidly as possible while also making all the investments to unlock those markets and get to those rapid free cash flows. Is there opportunity? If we go faster, if we have better success in terms of quicker integration, quicker synergy delivery, or outperform some of the assumptions that we put in the model around growth, ARPA, ARPU, yeah, there is always a potential that we could come to our board and ask to initiate something even before 2023. Thank you. Excellent. Let's take our next question from Polo Tang from UBS. Hi, everybody. Thanks for taking the questions. I just have two. It's clear that you're significantly exceeding expectations in terms of both growth and synergies, but what do you see as the main risks to your medium and longer term outlook? Is there anything that keeps you awake at night? Is it Cable gaining share? Is it Dish building a fourth mobile network or is it AT&T and Verizon getting more aggressive? That's the first question. The second question is, you've obviously outlined a clear plan in terms of accelerating growth from expansion into rural areas, the B2B market, but also fixed wireless access. Are there any recent data points that you can share to give us an idea of how you're progressing in these new segments? Sounds great. I'll start. It's a great question, Polo, the way I think about it is that, for me, obviously we've built this company by being fighters, by playing above our weight, by being scrappy, by running scared, by never resting. You saw some of that philosophy in the video that we ran right before we came on. Look, I think competition is a great thing, as I was saying earlier, as long as we're differentiated. The thing that keeps me up at night is making sure that in every time period for the foreseeable future for years to come, T-Mobile is well-differentiated in this market for both businesses and consumers because that's what allows us to navigate competition and win like we've been doing for years. As it relates to the specific competition, look, I feel great about our hand of cards. It's never been better. Relative to Cable and Dish and smaller companies, we have the scale and we have the advantage of our synergy-backed model and we have owner economics. It's going to be very hard for much smaller companies to compete with us over the long haul on being the best value, something that our brand is famous for in the United States. As it relates to our scaled competitors, we have better assets on network. The factor of competition for scaled competitors is network. We're way ahead and with the superior assets and balance sheet to stay ahead. Look, I feel great about our differentiation potential. As I said in my first comment, we're going to need to convince the world. Our brand is coming from a place of where we haven't been the network leader, and that's a risk to our business. We've got to convince businesses and consumers that we are the demonstrable network leader in the U.S., and we've seen great progress on that with the percentage of people seeing us as the 5G company more than doubling just in the last six months. The second question that you're asking about is our big growth areas like small town rural, smaller markets, prime suburban families, enterprises, home broadband. I'd just tell you that all the signs are looking good for these growing businesses. As you know, we're not starting from scratch. We declared several years ago a path to move from 230 million-265 million people covered by our full distribution and we carved out shares from single digits now up to 13% share in smaller markets. We're saying in our plan, the one that delivers all this cash flow, that we can in five years after a lot of effort, get it all the way to just 20%, just shy of 20%. If that sounds a little conservative to you, it should. As you know, our national market share is well over 30%, and that includes a giant swath of the country where it's only 13. Do the math on the balance of the country, especially the big markets where T-Mobile already is the market leader. Similarly, we're a 10 share in the enterprise space and already growing share at a rate that would allow us to exceed our ambition of being a 20 share in the planning horizon. Our last two quarters are some of the best quarters in our history when it comes to gaining share among enterprises for smartphone adoption. Some terrific early indicators. Home broadband, as you know, we piloted it for one year in LTE. We just launched it and the experience that customers are having is fantastic. Early on, you're looking at things like remorse rates and Net Promoter Scores and whether or not people are happy with the service, because that bodes best for whether or not our long-term aspirations are solid. The Net Promoter Score has tripled from people who adopted our service versus the score that they gave their prior provider. They're very happy with what we're serving them in the early going. Those are a few things, and we'll be sure to check in as we announce each quarter and provide some spot reports here and there on how we're doing on these growth trajectories. Great. Thanks. You bet. All right. Let's move to Steve Malcolm with Redburn. Steve, go ahead. Thanks. Thanks a lot, John. Thank you, guys. Thanks for taking the question and great presentation. Always very upbeat as usual, which is great. Yeah, a couple, just on coming back to the collective outlook for the industry, I mean, I think we all understand your 5G network advantage, but when I look at what you're saying and what your team's saying, Verizon's saying, you all seem to think you can grow ARPU in mid-single digits. Just sort of backing into the AT&T release, it looks like they think they can grow ARPU 5%-6%. You think that's a credible position for the industry over the next three to four years? If not, what is the downside of maybe your big competitors failing to hit their targets? Just on fixed wireless access, I know it's very early days, but can you maybe help us understand what you think the sort of annual switchers pool in the U.S. is? Give us some sort of bottom-up sense of how you get to that $7 million or $8 million number,% of the growth sense that you have to take to get there. That would be very helpful. Everyone's done the top-down picture, the bottom-up would be quite interesting. Thanks. Yeah, thanks. Well, first of all, on the home broadband piece, I can't unpack it for you too much other than the fact that if you think about the market that we're addressing, a huge swath of the market, a significant minority, in fact, almost half of the market where we're going has no choice. They have one or fewer options in rural America, smaller towns, as it relates to home broadband. What we're doing is bringing our model that knows how to compete into these markets, and we're going to be bringing competition and choice for the first time. It's important to note that we're ahead of our other wireless competitors in this area. Think about it this way. When we arrive in town with a viable option that's high quality and lower price, there's suddenly going to be a big market out there of people saying, "Hey, could I save some money?" In a time when the economy is probably telling people to find ways to save money. At the same time, we're advertising our mobile service and our 5G leadership in their neighborhoods. When our competitors arrive, when Verizon and AT&T arrive later, they have to do more than that. They have to offer something that's better than T-Mobile to be a late entrant. They have to come with a superior point of difference, and they don't have it. They're not going to have that to offer in very many places. That shows, I think, the importance of our urgency of getting to these markets quickly with our mid-band strategy. Now, as to your first question, the health of the industry. Listen, I take it as a very good sign that both of our major U.S. scaled network competitors have decided to focus on strategies more similar to T-Mobile's. Mid-band centric, 5G oriented, focused on the knitting pure play mobile internet companies, who then say they want to grow their margins. To me, those are all healthy signs for the industry. This is a viable, profitable industry. It's capital intensive, it's difficult, it's competitive, it's getting better for consumers every year, but it's got players that are now going to be able to have no choice but to be focused on the overall profitability of their mobile operations, which is probably a good thing for the ongoing health of the industry. They have no place else to go, to make their financial aspirations. The second part of your question is, which is asking me to speak to their credibility. Listen, I can only speak to our team's credibility. Thank you to the last couple of people who gave us some credit for the fact that we do what we say around here. When we say we're going to make 100 million pops on mid-band 5G by the end of 2020, we get there. When we say we're going to get to 200 in 2021, we get there. When we say what the financial results are going to be, we go get that done. Our competitors, look, what they're doing today is a complete about-face from what they stared at the camera just a month ago and said they were going to do. Look, I can't speak to their credibility. There's some disarray and some turmoil it looks like from the outside. What I can say, regardless of their words, which I'm not sure what people are perceiving about the quality of their words right now. Regardless of their words, my perception is they have no choice but to treat this industry as the place that they will derive margins and cash flows. That's probably overall good for the health of our industry. Okay, thanks a lot. You bet. All right, let's take our next question from Ottavio Adorisio with Société Générale. All right. Thanks for taking the question. Congratulations on the results. A couple questions, actually, both for Peter. The first is a follow-up from shareholder returns. The second is on the future renewal of tower leases. On the shareholder returns, I didn't hear about the credit rating as a sort of key priority whenever you decide about the cash distribution. Considering that you are still non-investment grade and in a climate of rising interest rates, could you just tell us if your share buyback, the start, or at least the acceleration, will be timed according to an upgrade to investment grade for credit ratings? Or that is not a priority. The second one is on your renewal of the tower leases. T-Mobile does not report net debt with tower obligation included, but Deutsche Telekom does report that and under IFRS, and that's required to capitalize for leases. Now, I believe that T-Mobile has three to four years left in the tower leases with Crown Castle and SBA Communications. As you renew American Tower's lease one or two years before the expiry date, would you plan to renew the Crown Castle and SBA comms within the next two years? If so, would the impact on tower obligation with T-Mobile be smaller or larger than the $11 billion that you recorded after renewal with AT&T? Thanks. Excellent. Well, thank you for those excellent questions. One, we are absolutely focused on getting to corporate family investment grade rating, and that's a priority for us in this business plan. With a massive unlock of free cash flow and rapid de-leveraging, where we'll be in the mid tier core, but our leverage range by the end of next year allows that for us, and we're absolutely taking that as a priority. You can already see where our secured investment grade rated notes trade ahead of AT&T even today. I think the market takes us very seriously. They're very much looking forward to us delivering on the progress, and that's the stepping stone to get to IG. I don't see getting to corporate family IG as the precursor to beginning shareholder returns. It's something we would consider in terms of the timing of that, but they might come very closely together and not necessarily a precursor for us. On tower leases. Yes, you mentioned and referenced our ATC renewal, which was just an incredible job by Neville and the team to allow us massive flexibility, lock in decreasing escalators in the industry for a significant length of time, and generate, most importantly, cash savings from day one. Yes, there's an accounting interpretation of this that puts it on the lease liability, but from a cash savings perspective, it was day one savings. As it relates to Crown, the priority right now is building this 5G network and giving Neville and his team all the tools necessary and investments necessary to maintain this lead for the duration of the 5G era. If there's opportunity to do that makes economical sense and benefit with Crown, then of course we're going to entertain that. The impact on the tower obligation would be larger or smaller because from memory, I think your exposure to Crown Castle and SBA Communications combined is larger than the one towards American Tower, at least historically, though not going forward. I can't speak to where any sort of negotiations can end up, but I can tell you that just like we approach ATC and just like we approach everything, we're looking towards value creation for this enterprise. Flexibility to maintain the duration of the 5G era, the network advantage they're giving Neville the flexibility, but also creating economic advantage for our shareholders. Where that ultimately ends up in terms of a magnitude and when, it's hard for me to predict right now, but those are going to be the fundamental drivers for any decision that we make. All right. Let's take next question from Akhil Dattani from JP Morgan. Hey, guys. Thanks for taking the questions. I've got two please, if I may. The first one, obviously we've talked a lot about your accelerating cash generation and the $60 billion buyback potential that you have. Maybe just wanted to address that question another way, which is obviously there is accretion and value to be created by buying back stock, but potentially that money could also be used to accelerate growth or find new other opportunities to create value. I just wondered if you could talk about that trade-off. Are there other areas of opportunity for growth that you can think of? Where else could you spend that money if we think about alternative uses of cash? That's the first one. Then the second one is, sitting here in Europe, we always struggle with the belief of CapEx going down a lot long term. European telcos haven't had the best track record on that front. You've obviously got a very nice message around CapEx going down to EUR 9 billion-EUR 10 billion long term. Can you just walk us through how we get confidence that CapEx can reduce to those sorts of levels long term? Thanks a lot. Yeah. I will start and then maybe ask Peter to comment because your two questions are kind of related to each other. First of all, this business plan that we have crafted is a growth plan. For the duration of our planning period and beyond. It includes the investments that we need to make in order to continue growing after the planning period. That's different than I think some business plans out there look like. In the out years, these EUR 9 billion-EUR 10 billion in CapEx are what we believe we need to have a viable competitive network on the back of years of building on a superior asset base in order to be able to continue to grow. The delivery of significant cash flows that gives us the potential for share buybacks is net of investments that we would make in ongoing growth. That's not to say that there might not be trade-offs as it relates to the growth that we have, and potential greater growth opportunities that could come instead of those returns. It's important to understand that as we go along, we'll be looking at opportunities, and if there are great opportunities that accelerate our long-term potential, we'll trade that off. We'll be very transparent as we do that. Absolutely, Mike, I couldn't agree more. It's going to be looking at that point in time as to what are the opportunities in front of us to create the maximum shareholder value. What's equally exciting is, as you stated, is the magnitude of free cash flow that this plan delivers. Not only from 2023 to 2025 of the $60 billion, but beyond into the long term, that continues. You have a lot of room with free cash flow generation to make the right trade-offs and decisions and maximize shareholder value, not only in the midterm like we're doing, but also into the longer term. On CapEx, one of the beauties of the scale that we've been able to accomplish with new T-Mobile is Neville and team have been able to successfully go out and create procurement arrangements with some of the largest OEMs. We are building faster in terms of a network build than anybody has in this country before. That pace is what we're doing to build EUR 11.7 billion-EUR 12 billion in CapEx annually. You can think about as this massive network build completes, then it's rational that you would have a lower step down in CapEx. The beauty is that those procurement synergies that we've been able to deliver on with the scale are what drive not only today, the ability to build this network at such a rapid pace with the CapEx that we're actually doing, which is significantly less than our competition, but also then allows that step down. Great. Thanks. All right. Let's wrap up our final question with our host today. Thank you again for having us. Tim, go ahead with your question. Yeah. Hey, folks. How are you doing? Great, Tim. Can you see us all? Yeah, guys. Sorry we missed you. I wish we were in Bonn. It's great to see you. Look, first what I want to say is, guys, we got everything recorded what you said. You sounded very bullish. Peter, I got your payback starting 2022. Here we go. Everything is recorded. Let's thank Guys, we want to say thank you for outstanding performance and the great partnership with you guys over the last years. Thank you for your great friendship and what you delivered, including the pandemic management that was outstanding, the Project 10Million. There's one thing that I want to say. Guys, you have to work on your outfit. The Germans looking cooler than you guys. We are differentiating. Mike, you have to work on the differentiation, you know that. Gosh, Tim, that's fantastic. I guess cool is in the eye of the beholder. We are definitely cooler than you guys. With this, keep on running, guys. It's great working with you and it's fantastic the results and good luck with the upcoming months with you soon. Well, it is great to see you guys today. Thanks for having us and great day. Great first day to capital markets. Thank you. Hope to see you again soon. Bye-bye. See you, guys. Thank you. Mike. Thank you everyone for bearing with us and I hope you had a good first half of our Capital Markets Day, 2021 Capital Markets Day. In terms of organization, tomorrow we start again, restart at 11:00 A.M. The presentations for tomorrow, that's CET. The presentations will be available from 7:00 A.M. CET, so 6:00 A.M. GMT. Claudia tomorrow will take us, Claudia Nemat will take us into the engine room, or I would call it maybe the cloud rather. In any case, it's stuff for the dreams and here we go. Look forward to welcoming you back tomorrow. Thank you very much.