Good afternoon. Welcome to Deutsche Telekom's second quarter 2023 conference call. As you can see, with me today are our CEO, Tim Höttges, and our CFO, Christian Illek. As usual, Tim will first go through a few highlights of the year to date, followed by Christian, who will talk about the quarterly performance and the group financials. After this, we have time for Q&A. Before I hand over to Tim, please pay attention to our usual disclaimer, which you find in the presentation, and please also note that this conference will be recorded and uploaded to the Internet. It's my pleasure to hand over to Tim. Yeah. Welcome, everybody. Thank you, Hannes. Welcome to our second quarter, 2023's call. Maybe my highlights of today: it's strong customer growth, a solid year. Don't worry too much about the circumstance in our industries. Our flywheel remains quite successful. We continue to deliver constant consistent growth as we have promised. Let me highlight that here on that slide. We saw in the U.S. the highest second quarter postpaid phone net adds in eight years. We were able to raise our outlook again. In Germany, we had record customer growth. We added 600,000 branded postpaid phone customers in the first half alone. That shows the strong reception on our new tariffs. We have undisputed network leadership on both sides of the Atlantic, which is very encouraging as well from our external sources. We are now passing 15 million European homes with fiber, of which 6.2 million are in Germany, and we keep the pace on building infrastructure. We agreed on important blueprint for deploying fiber with our partner GDW, the umbrella organization for most German housing associations, and now we have a new entry to this field as well. Our adjusted core EBITDA grew 6% organically, while our service revenues grew 3% so far this year. Everything ahead of our capital market guidance targets, which we have laid out. We understand investors' concerns about the recent developments in the German mobile wholesale market, and we will probably discuss that later on. Please remember, the German market has had various ups and downs in recent years, and we are just posting the 27th quarter of EBITDA growth in this market. Based on our good year-to-date results, we are raising our guidance slightly once more, and this time on both sides of the Atlantic. I will go through the details later on. Our TM U.S. stake now exceeds 51%, and we were well on track also for our capital allocation targets. Our net debt is down by EUR 9 billion in the last 12 months, and after the rating upgrade from Standard & Poor's, our credit rating from all three major agency is now in the middle of our comfort zone. As usual, I will go through some year-to-date highlights before Christian will dive into the quarter in greater detail. On page five, you see that our growth continued in the second quarters. All segments, all segments contributed to this growth. Organic group service grew by 2.9%. Ex-U.S., we grew by 2.4%. Organic core EBITDA, ex-handset leases, is increasing as well with 5.8% in the first half. This represents a sequential acceleration from 4.4% in the first quarter to 7.1% in the second quarter. Ex-U.S., EBITDA grew at 1.1%. This was impacted by different cost phasing in GHS compared to last year. This will largely reverse in the second half year when we expect an acceleration. Germany has now delivered 27 consecutive quarters of organic EBITDA growth. The European segment, 22 quarters. The foundation of our growth remains our network leadership. We now pass almost 15 million European homes with FTTH, 3.4 million households more than one year ago. We passed 6.2 million German homes with FTTH. Our ultra-capacity 5G network now reaches 285 million U.S. pops. This remains a long way ahead of the others and within striking distance of our 300 million target for the year-end. Very proud we are about customer growth. Our customer growth continues, as you can see on the following page. All markets are going full steam, we won't stop. Moving on to ESG. At our AGM in April, we had sharpened our climate ambitions, I'm happy to say, despite the strong growth in data usage, we reduced our energy consumption on both sides of the Atlantic so far this year by -8%. Next, let's move to our guidance for 2023. A couple of weeks ago, T-Mobile U.S. edged up its guidance for customers and EBITDA. Today, we also increase our ex-U.S. EBITDA guidance by EUR 100 million to EUR 14 billion. We continue to expect 7% core Adjusted EBITDA growth and over 40% in free cash flow growth at group level. Note that our guidance remain based on an U.S. dollar exchange rate of $0.015, and continues to exclude any contribution from GD Towers. Please refer to the appendix for a like-for-like comparison of our guidance with the latest consensus. With it, I already hand over to Christian for a deeper dive into the quarter. Thank you, Tim, hello also from my side. According to U.S. GAAP, the core EBITDA has grown by almost 11% on a year-on-year basis. What you can see in the numbers is that the drag from the planned reduction of handset leases is really coming to an end, and that we also had a bigger U.S. GAAP IFRS bridge in the second quarter that accounted for $260 million. We're persuaded and confident that the full year impact will be around $800 million-$850 million. The revenues on a top line declined due to the lower equipment revenues. I think this is A. due to handset revenues, but also the replacement cycles in the U.S. becoming longer and longer, and that impacts the revenue equipment business. The more important KPI is obviously service revenue, which came in 2.8% higher than the year before. If you break it down into the categories, the postpaid service revenues, they grew by 5.5%, prepaid was flat, and wholesale was declining by roughly EUR 200 million. Also, if you adjust for the exit of the wireline business during this quarter, the service revenue would have been 3.3%. What's really supporting our growth is that our differentiated growth vectors, the three which I will mention, continue to perform really strongly. The small markets, rural areas, we are having now a market share of about 16.5% and see a continuously, share gain. The share of switchers is in the upper range of the 30% range, so this is really a performing business. You heard Mike, who said, who said that we would stop at 20%. I continue to believe that we will increase our share beyond the 20%. Same well is true for B2B. B2B obviously is a continuous growth business, and we also saw on high-speed internet a very strong net add addition of another half million customers. In total, our base is now 3.7 million subs, or an increase of 2.1 million on a year-on-year basis. What you also have seen in the second quarter is the 760,000 postpaid phone net adds, which is the best second quarter in 8 years. That led, obviously, to the customer guidance upgrade in the U.S. once more by 250,000. T-Mobile expects now 5.6 to 5.9 postpaid net adds, of which roughly half is coming from phones. Moving over to Germany. Tim said it already, 27 quarters of consecutive EBITDA growth, it's another quarter to go that we basically get to 7 years in a row. The organic EBITDA was again up by 3%. The organic revenue growth was only 1.1%. This is also an impact coming from lower equipment revenues. The overall service revenue increased by 1.6% this quarter. Mobile was performing slightly better and accelerate to 2.1%. By the way, we expect this for the upcoming quarters. If you reflect on the Q2 numbers, you see there was a drag coming from Lebara and MTR cuts, but on the other hand, we had visitor revenues and roaming as a tailwind. If you adjust for all these four factors, the underlying growth is close to 3%. Fixed revenues came in a bit slower. I will explain this to you in a minute. Obviously, our fixed revenue growth is driven by very strong retail revenues, and thus, in turn, by broadband revenues. If you compare the growth of the Q2 number relative to the previous quarters, you see that there was a decline from 4.7% to 4.0%. This sequential slowdown has nothing to do with the broadband customer growth, nor with our speed monetization, which I will get into later on. It is driven basically by the adoption of principal-agent reporting starting in Q2 2022, and that has a negative impact compared to the Q2 number. If you compare Q2 this year versus Q2 last year, where we didn't have that agent reporting but still principal, and that drags down your broadband revenues. I think what you've seen also is that the one-off, which we have seen in the first quarter in wholesale, is now gone. You see a slight increase of revenues, and we're confident that we're gonna provide you with a stable revenue figure by the end of the year. Our broadband retail customer base is performing really strong. You see the 67,000 net adds in the German market, as well as this 36,000 TV net adds. We assume that our net add share is well above the intended 40% target, which we're having. What you also see is the constant and almost linear growth in upselling higher bandwidth. Now, 43% of all our broadband customers have speeds of at least 100 megabits. Also, we increased our FTTH customer number by 64,000 to 833. We have also, basically in the backlogs, 650 pre-marketed customers, where we don't have the technical solution ready yet. That leads us to the assumption that the FTTH growth will accelerate in the upcoming quarters. On mobile, you see the customer intake is really strong, with almost 320,000. The churn has come down significantly. This is a normalization post the TKG effect. Also, you see a significant increase of data consumption, which is obviously also driven by our rollout of the 5G network. Gets us to the next segment, which is Europe. To be honest, Europe is performing better than we anticipated it to be in the beginning of the year. The reported revenue was growing by 6% and the organic revenue by 5%. Interestingly enough, the local currencies, like zloty and forint and Czech koruna, performed stronger relative to the euro, and that actually explains the difference. Despite that, we had to manage meaningful inflationary headwinds, and you know, you know them. It's salary cost, it's also energy cost. The segment was able to deliver a 2.6% growth on a year-on-year basis, and that is very much also driven by the very solid customer numbers, which you can see on page number 19. Moving to T-Systems. The organic revenue of T-Systems grew by 4.8% and the EBITDA by 2%, so we're well on track meeting our full-year guidance. The organic number is important because we have moved MMS from T-Systems into Germany. Therefore, you see that the reported and the organic number are different, different from another. What we're also seeing is a decline on the order entry, and this is mainly to be explained by phasing or slipped deals. That gets me to my overview on the financials, on the group financials on page 21. You see that the overall P&L is obviously impacted by the tower transaction, which we have closed in February 1. You see that the headline revenue growth is being impacted by the lower equipment revenues from handsets, and that's very much driven by the U.S. The headline EBITDA is obviously impacted by the unwind of the handset leases, but this will come to an end by the end of this year. Our CapEx, to be honest, is a bit front-loaded in the first half. Despite the fact that CapEx has come down, we consumed relatively more CapEx than we anticipated it to be in the beginning of the year, but this will phase out in the second half of the year. The tower transaction, I think that's worth mentioning, obviously has a massive impact on the net impact, net profit, which now is at EUR 17 billion, and also helps us a lot on deleveraging. It gets me to the free cash flow. The free cash flow grew at 28% this quarter, but we expect that on a year-on-year basis, by the end of the year, it will be north of 40% growth, so I expect acceleration in the second half. Obviously, the cash flow is supported by cash from operations. You see the decline in CapEx, and we had a benefit in 2022 on leasing payments due to the prepayment of ATC in the U.S., which obviously has a negative impact in this year's numbers. The adjusted income has declined by almost 23%, or let me put it this way, EUR 560 million. That can be completely explained by the financial result. The financial result is down by close to EUR 1 billion, and there are three drivers behind this. First driver is, obviously, in this interest environment, we have to pay higher interest rates that account for roughly EUR 200 million. We had to increase the provisions for pensions by EUR 500 million. That's post Beamtenkrankenkasse. The value movement of the options and the forward was negative by EUR 300 million. These are all what we call non-recurring items, as you know, except for the interest costs. If you adjust for the non-recurring items, our EPS would have grown by EUR 0.06 per share. Moving over to leverage. Leverage is at 2.4x leases and 2.94 including leases. By the way, the 2.94 including leases compares to a 3.28 in the previous first half in 2022. We indicated this in the Q1 call that we expect that the leverage ratio is increasing again, and the main reason for this is the dividend payment here on the DTG side, as well as their share buyback program in the U.S.. Tim has mentioned that, we received an upgrade from Standard & Poor's, so we are now with all 3 rating agency in the middle of the quarter of our comfort zone. We always have on, on, for all of them, a stable outlook, so I'm confident that we're tracking well against our CMD targets also when it comes to leverage. With that, I hand it over to you, Tim. Let me wrap up this call by reiterating some high-level takeaways. First, our commercial performance continues strongly in all markets. T-Mobile delivered the best second quarter post-paid phone growth in 8 years. Germany has now grown EBITDA for 27, the EU segment for 22 consecutive quarters. We have raised our full year guidance on both sides of the Atlantic, and as of mid-July, we own 51.4% of T-Mobile U.S.. Our net debt has come down by EUR 9 billion year-on-year, and we remain well on track for our capital markets targets. As you can see, we continue to deliver reliable and consistent growth. There's a lot of noise in the market about a lot of things, but I think we give our answers very clearly on the pitch, and with this, we are ready to answer your questions. Thank you very much. Excellent. Thank you very much, Tim and Christian. Now we can start with the Q&A part. If you'd like to ask a question via Webex, please press the Raise Hands button function, and if you're required to cancel your questions, please press the Raise Hand again. By calling on your telephone, please press star three, and if you want to cancel your question, press star three once more. I'll announce your name when it's your turn. We would be grateful if you could restrict yourself to two questions. Two questions, and please note, you must, unmute and unmute yourself, as appropriate. So let's start with Polo from UBS, please. I have two questions. The first question is really just about 1&1 and Vodafone. What is your view on how the national roaming agreement between the two parties will impact the German market? Are you worried that competition in Germany will intensify? How should we think about the impact on Deutsche Telekom specifically? My second question is really just about cash upstreaming from T-Mobile U.S.. Thus far, Deutsche Telekom has not participated in the T-Mobile U.S. buyback. However, can you comment on whether you intend to participate in the T-Mobile U.S. buyback going forward? This is likely to be a 2023 event or a 2024 event. Thank you. Polo, first, you know, we are not party of this transaction, and therefore, we are not directly affected by what's going on there. 1&1 has decided to change its roaming partner and enter into, into the long-term agreement with Vodafone. I'm surprised that Vodafone is doing this. You know, I do not know how desperate they are, but, you know, I think there was no reason. It's always tricky if you have two kingmakers, you know, or one kingmaker and two kind of opponents there, who are fighting on this pricing. I do not understand, you know, how this pricing works, but nevertheless, for me, the winner on this situation is clearly one, Eins und Eins. Based on the statements from 1&1, beyond the extended longevity and access to 5G, it's not clear, you know, whether this has any material change to the nearer-term German market environment. That is, for us, you know, unclear. In their call, 1&1 said that for the next five years, at least, pricing in the new agreement is similar to what they got from Telefónica Deutschland. Clearly, the Vodafone and 1&1 agreement changed the parameters that Bundesnetzagentur must take into account on their ongoing deliberations regarding the auctions. We have always said that a prolongation makes a lot of sense, but it depends on the conditions. If the conditions are not right, we are even prepared for going into an auction. The situation has, has, has changed a bit, for us, due to this transaction. I don't understand, you know, why the industry is not calling the bluff here and trying to find out whether there is somebody who's really able to build a network. Now, they enable 1&1 for a longer period to have access to an infrastructure. Look, apart from the conditions, I don't know. Probably Deutsche Telekom would not have entered in a true transaction like that, but that is something you have to ask Vodafone. Okay, Polo, on the cash upstreaming question, let me reflect first on what's ongoing, which is the current trend, right? You know that the total volume was $14 billion up until end of September. I'm very, very confident that we will completely use the total volume, and you see basically the reports from the U.S. on the share buyback. You also know that we have basically a wording out there that we're saying we intend to own in the low 50s to have a little bit of wiggle room, but also insurance, for example, for the true-up. We haven't decided on any new program yet, okay? It's very hard to ask parts of your question. First of all, I would say, yes, it is likely that we're gonna participate if there's a second tranche. Second one is that doesn't mean that we're completely selling everything into the market, so the relationship will be decided on later on, and it's obviously depending on the, on the volume, but also on the profile of the share buyback tranche if we decide to continue. On timing, I can't give you an answer because we haven't decided on the second tranche, so I don't know whether we're continuing in Q4 or whether we're starting in 2024, but the participation is 100% in 2024. This likelihood is very clear if we continue with the share buyback. Sorry for the technical answer, but I think we have to have a decision up front before we communicate about it. Christian, isn't it right that, we have said, you know, in the Capital Markets Days, that we have targets as well on our leverage ratio in the group, and therefore, you know, we do not want to deviate from our leverage targets going forward? I appreciate that statement. Yeah. Yeah. Okay. My financial prudence is famous. Yeah. It's, it's good to see you in, in this great cordial agreement. With that, we move on to, Robert at Deutsche Bank. Thank you. Thank you for being on the pitch. There has been more noise, not least in Germany, about high-risk vendors, but clearly timeframe is key. Do you have any visibility on outcome? Is Open RAN still feasible on the timelines being discussed? My second question is, GDP is a bit soft in Germany and Europe. Are you seeing any macro impact on the B2B side in either region? There seems to be no evidence in the KPIs, but anything on talks about new ICT projects flowing or any color? Thank you. Robert, let me be quick on the second part of your question. We, we don't see any kind of GDP impact, nor on B2B, nor on the B2C side. What we see is there is a big swing into ICT projects, into digitization projects. Both sides, at our German operations, where the digital business unit is in the security and the SASE products and in the ICT era, is growing beyond our expectations, and as well in the digital service at T-Systems, where we see nice growth as well. It looks like that a lot of companies are using the digitization, automation, and the efficiency elements of the digitization right now, and we are benefiting from that one, and we don't have a slowdown here. With regard to the high-risk vendors, look, the German government has released their China strategy, and I think it is a very clear statement that there is no decoupling intention from the German government. Nevertheless, you know, there's an argument about sovereignty, which the companies should care about. And therefore, I do not see that there is any kind of aspiration for banning any new vendors here. There is a security element, which we always have to consider, and Deutsche Telekom is fulfilling that. On the core infrastructure of our mobile network, we are using Ericsson and Mavenir. In the IP aggregation network, we don't have any kind of China vendor, and in the access nodes in the RAN infrastructure, there is one component where maybe the security authorities will might have a change, which is the configuration management, and we are on the way of becoming independent here as well. We don't see an immediate impact on our business from, from a political agenda. With regard to the RAN, the Open RAN development, we are making good progress here. You know that we have this big pilot RAN up and running in, in close to Berlin. Our expectation is that we are scaling up our Open RAN next year in a significant magnitude to just, you know, show the mass market qualification for that product. Our partner here is Nokia, and we're making good progress, and so therefore, it's an execution element which we have. We see that Open RAN is really gaining tractions. 300 telcos, vendors, academics, are member of our of our consortium here, and the technical things are on a good way to get solved. It, it looks encouraging. Okay. I also had a similar question, Huawei-related question from HSBC, and Adam Fox from here, asked whether, you know, the potential magnitude of an, of a, Huawei removal would, change the capital allocation priorities of the group, but, I think you've answered it- No A nd that we would not expect an impact of that magnitude, and, and significance. With that, we move on to Andrew Lee at Goldman Sachs, please. Yeah. Good afternoon, everyone. Thanks for taking my questions. I had two questions. The first was actually a follow-up from Polo's on upstream and cash from Timos. Quite a lot of people got quite excited by the change in wording that Timos gave around how it plans to distribute cash and whether that was meaningful or not. So my question would just be: Do you have a preference, or if you could lay out the pros and cons to Deutsche Telekom of receiving cash from Timos via buyback or via dividends, your tax implications, anything like that, that we should consider? Second question was just on towers. You know, obviously, you've, you sold a stake in towers, and you cashed in a nice multiple, but it's still a, you know, key part of your business. We're, we're now seeing a potentially large tower co looking to sell some assets. Could you just talk about how you think about the potential to acquire towers via your via your JV? Whether this is the right time in terms of the JV itself, and whether you think it's a good time in terms of tower multiples? Thank you. An drew, on, on the upstreaming of cash from the U.S., everyone has almost read that new wording, and I think that it's meant to be to have flexibility, whether this whether this is a purely share buyback program or a combination of, of something different. Look, from a financial point of view, I prefer share buybacks over dividend, because we have to pay an extra tax on dividends of, of 5%. On the other hand, you have no flow back into the market. From this perspective, I think this will be part of the discussion which we're gonna have at the U.S. Board. What is the volume? What's the timing? If there's a mix change, what is the mix change when it comes to a new shareholder remuneration? I have really problems spelling out that word. Remuneration. No, remuneration. Yeah. So stay tuned. I think we will take a decision, not, in not too long time period, and then we will explain why we decided what we decided, which hasn't been decided yet. With regard to the tower question, first, we have carved out our Czech towers on January 1st, 2023. Slovak towers are currently in the process of being carved out, and we are analyzing potential options in other countries of Deutsche Telekom and their footprint. We have still potential to sell towers to the market or into our partnership here at a later stake. We're talking about something like 4,700 towers in Czech or 2,500 towers in Slovakia. Therefore, you know, there is still a lot of potential within the group, how we can monetize assets on this one. You know, no decision taken on that one. The question around what, what kind of role we are considering playing in the further European tower consolidation, I think GD Towers will play an active role. We have to consider such options from a value accretion perspective. Today, we have nothing to report on this one. I will not speculate on this one, and I haven't heard from our partners, DigitalBridge and Marc Ganzi, something with regard to consolidation attempts here. Your question comes a little bit too early. We have to look into each case, the Brookfield guys, as well. Let's see how this is evolving, and then we come at the moment we see, and we have better sight on it. Thank you. We move on to Ottavio at SocGen, please. Hi, good afternoon. A couple of questions on my side, and I think they are both for Christian. The first one, it's on the ongoing decision DISH has to make about exercising the option to buy spectrum from T-Mobile U.S.. The deal is relatively sizable. It's around $3.5 billion, and it was announced quite a while ago. I want to just to check, how much of this is your embedded in your deleveraging targets? I'm sure that if DISH will not buy it, T-Mobile U.S. will get to make good use of that. In the meantime, you will not get $3.5 billion of cash proceeds. If you can tell us, if you guide, if that it, your deleveraging really depends on that or not. The second is on the just a follow-up on the buyback, but take a different angle. You basically prefer not to tender your share at the moment because you want to have a majority cushion on your stake into TMUS, particularly because of the option that, that the SoftBank still has. In the meantime, you still have a loan around $1.5 billion to TMUS. I'm mindful that will only mature in 2028. I was wondering, wouldn't it probably consider the option of swapping that loan into equity that give you a higher holding? I don't know why you want to have exposure through the debt rather than through the equity side. If that is possible, if you're considering that there's a possibility of doing so. Hmm, on the first question, Ottavio, the minimum price is $3.6 billion for the 800 MHz spectrum. In case that DISH is not buying that spectrum, they have to pay us a fine of $70 million. In case the spectrum is not being bought by DISH, we have to auction it, and the minimum floor price is $3.6 billion. Since there's so much uncertainty around it, I think we have been prudent in our assumptions whether this is part of the operational plan or not. We haven't been clear about this, so this is why I put it a little bit vague. I wouldn't expect a negative impact if there is no transaction being conducted short term. This is the one thing. The second one is on the remaining financing from DT. We never entertained such a discussion, I can't answer your question. We're always basically putting it on 28 because obviously TMUS is allowed to pay it back earlier, but we never had a discussion to turn this into equity. I can't give you an answer, but I take it on as an action item. Okay, bring on the good ideas, and I'm sure Akhil has a few. Akhil's next at JPMorgan. Great. Thanks so much for taking the questions. Tim, you mentioned at the beginning that there's a lot of debates in the industry right now, and obviously, we've discussed one of them, which is German mobile. I guess similarly, we've had debates around the U.S. mobile market, firstly with obviously Amazon potentially entering. I guess more generally, the concern is competition's intensifying in the U.S., and you've talked about your growth levers like fixed wireless access and enterprise. A lot of investors, when they strip those items out, feel that the U.S. business for T-Mobile is growing at very low levels now. If you could just maybe comment on those competitive threats and how you think about the longevity of your growth outlook in the U.S.. That's the first one. The second one is, I guess, a bigger picture question around the strategy at Deutsche Telekom. I mean, you had a capital market, say, in 2021, where you laid out some pretty transformational objectives and plans around towers, Sprint integration, and fiber CapEx. Also, we're sort of coming to the end of that guidance period at this point. I appreciate it's still a while to wait until you come out with your CMD, but presumably you're now sitting down and thinking about it. Can you maybe share some high-level thoughts around what you think are the right ways to think about the story for Deutsche for the next two years? Is it more operational, given you've done a lot of the heavy lifting? Or do you think there are some big strategic topics still to attack for that CMD? Thanks a lot. Let me, let me focus on the US first. First of all, we don't share the view that there is limited growth in the U.S. market, in the core business. What I said earlier on, the post-back growth on service revenue was 5.5%, and I think we have to bear in mind this company has become a significant larger company. To expect a similar growth rate like to the old John Legere times, I think would be a little bit unfair. The second one is, I think, Mike was very assuring, especially on the Smira opportunity and the B2B opportunity in his call, that he said, "Don't expect us to stop at 20%. By the way, we have to go another 3.5%," right? He's committed to the HSI, $7 million-$8 million, which gives us another runway of 2 years, but not 10 years. That's a fair comment. The third one I would, I would basically see is, The U.S. has increased now their customer numbers 2x, right? Obviously the operational momentum is still ongoing. The ARPA is increasing, so there may be a lot of competitive dynamics there, but so far we haven't been impacted, and I think the team is completely confident also to deliver the upcoming quarters. There is a question on high-speed internet. What is the runway of this business, and when do you have to basically reduce the growth? That question has to be answered. On the other hand, on B2B and on Smira, but also in the large markets where we're having a significant share, I think there's a lot of land grab to be done. CMD. Look, first, I'm very happy about how the teams everywhere executed our Capital Markets Day from 2021. We are exceeding or achieving all targets. We are well on track despite all the changes happening on this journey. Think about, let's say, all the inflation challenges which we have in the business, both on CapEx, both of IDC side, and how the organization is reacting on them and delivering strong customer growth and strong EBITDA growth beyond their target so far. This is very encouraging, and you are right. You know, we have ticked a lot of boxes on the portfolio side as well. Um, majority, um, in the U.S., um, um, um, we have, um, solved, let's say, uh, the market consolidation, uh, almost in every market, uh, where we are in. So a lot of boxes ticked now. Um, we have now to question ourselves, how are we, uh, creating the next fifty, um, to seventy billion, um, market cap, uh, in our business? And that's exactly what we're working on, by the way. So, um, I give you a floor about, you know, how we are thinking what's coming next. There is definitely an element, um, um, which we call, um, which is driven by AI and by the softwarization of our businesses. Um, and, um, this, uh, is bringing us big benefits on the IDC and the cost side. We have announced this morning an additional cost program for the headquarter functions and for the shared services. That's just the beginning of, you know, efficiency gains, which we're gonna drive by digitization automation. We have now 60% of our businesses on the IT and the cloud and something like 30% on the network side. We're gonna bring that, you know, almost to 90% soon, which has big benefits for us because we can scale the software across countries. The synergy element of what we are doing jointly with Americans has significantly increased. If you look to the high speed router in the US, and the technology behind that, it's a European one. If you look to the, the app, which we are developing, it's a global one. When you look to the Revvl phone and the and the and the T Phone, it's international, driven from America. When you look to software developments, we are working very collaborative. Scaling synergies in a software world is much easier than in local telcos. This is a benefit which we are proving now, and we see already the benefits out of that. The next chapter on what I see going forward is the area of the portfolio where we still can work on. We have this BT Group issue where, you know, we are strolling around, but it is an asset which we can surely play at one point in time. We have, definitely, on the tower sites, more potential to come. We have, the, situation in Europe that I believe, over the next years there will be a consolidation coming because, there are, 67 mobile operators in Europe, of which 35 are operating with less than 500,000 customers. This is highly unprofitable. They're not earning their capital costs. They will fall into someone arms, and I hope that the European policy is changing. Something is gonna happen here as well. Fourth element is definitely, the area of B2B. I see huge potential in what we have changed last year, where we said we are not only talking about TC services. We're not talking about security, adjacencies here and ICT products. We will help our customers. There's a huge demand in the KMU segment to drive our growth by helping these guys to go into the digital environment. They need the productivity gains, they need the services here. Telecommunication is an enabler, and we have the the the the people up running. By the way, we are very lucky that we have elements like T-Systems in the group, which are helping us on the software development and the software applications, which we are which we are providing here in the industries. This is just, you know, four areas. There are two other, three other areas, we will work on this one. I can tell you one thing, this whole debate in Europe, do we have a slow growth or no growth society here in Europe? Is it good for, for sustainability targets and the like? Deutsche Telekom will stay a growth companies. I'm strongly believing that the only way of safeguarding the wealth of our, our company and as well, our society, is that we are driving growth with our infrastructures, 5G and fiber. We have laid super high foundations for additional growth in the, in the future. This is anyhow a no-brainer. There are additional services, which we are deploying these days, and we are working on a detailed plan for the next EUR 50 billion-EUR 70 billion market cap, which we then are gonna show you in our next Capital Markets Day, with all details. That's just, just kind of glance or a bait for Deutsche Telekom. That was. That's too much, huh? Hannes has a heart attack, so Hannes cannot, you know. No, I was a bit worried about attendance at our next Capital Markets Day, but I now I'm sure now we will have good attendance and, you know, those expectations are well managed, Tim. Thank you. I think that's a good bridge to the next question from George. Yes, good afternoon, thank you for taking my questions. The first one is actually a follow-up on the comments that Tim just made around the benefits of scale, and also if returns were to improve in Europe, whether it makes sense to look at consolidating the European market. When we speak to investors, and the recent example in Germany raises more questions on that, apart from regulation, there's also concern about culture and behavior of the different players in Europe. I'm just curious, from your perspective, if regulation were to change, do you think it's sufficient for there to be better returns and for you to perhaps commit more capital in Europe? Do you need to wait and see changes in the mindset of some of your competitors? My second question is on German broadband. You had very good numbers again this quarter, and stability over the last year. What we are seeing when we look at the market growth of the main players, every quarter looks a bit worse than the previous one. I'm just curious if you can maybe outline the reasons behind this. Is it overbuilders? Is it post-COVID hangover? Maybe fixed wireless. Just what's driving this? And any views as to whether it's a temporary effect that could reverse or whether it's something we have to adjust for in the coming years? Thank you. George, thank you very much. I think, you're spot on. Looking to Europe and European M&A, Europe was and is by far too fragmented. The average return on investments in the European market compared to the U.S., for instance, you know, are shrinking or were shrinking. The impact of change in regulation hasn't been fundamental to improve this overall industry now for almost a decade. Look, there will be a process of learning here in Europe, and sometimes it needs a catharsis, you know, like in Greece. You know, look, Greece is a good example. In 2008, we all said, you know, "This this country is done." If you look now, even, you know, with its unpopular decisions which the conservative government has taken, people are reasonable, and that they elected this this party. Now you see the positive impact for the society and for the GDP in this in this country. There is a way, you know, to change things. There is a big debate in Germany and Europe that things have to change and have to change quicker. Europe has to, for instance, react on the Inflation Act of the U.S., on the high energy prices, on the overregulation, and so forth. I think the pressure is heating up here. Therefore, I think we, we as entrepreneurs or company run leaders here, like, like, like Christian and myself, you know, we are very unemotional. You know, we are looking to the numbers and the facts, and we have already once had this decision. What we did is, you know, despite that everybody wanted me, you know, to sell the U.S., we doubled down in the U.S.. In the hindsight, it was the wisest decision we have ever taken. You see now, after the successful completion of the T-Mobile merger, where we are, you know. Therefore, you know, we have always the alternative to allocate our money either/or, and we will do this from a very rational perspective going forward. Now, I hope that Europe is waking up and changing certain things and not overregulating these markets going forward. You know that we are all pitching that, you know, the regulator should not only look on consumer prices, but as well on capital returns, you know, to have a mixture for investments in the future. We have certain, you know, payouts, you know, ratios in the company, which we will fulfill, and we will align our allocation of money towards the targets which we are having. On top of that, we have this big advantage of the U.S., and we can decide which kind of opportunities we are taking with the cash flow, either in the U.S., or in Europe, if there is a possibility given. This is the good thing of our great portfolio, which we are having, to always compare, these two sides of the, of the, Atlantic. Going forward, I think, you know, there is a lot of concern around the European market. There's always something good in this because, you know, people hopefully will, change their minds. There are a lot of, let's say, proof points, being it in Spain with regard to the merger there, being it in Germany, with regard to the auction, which is coming. Let's look on their decisions, and then we draw our conclusions out of that, yeah? This is the way how you're investing into us, and that's the way how we are investing into the businesses. On your second question, George, clearly the German broadband market is maturing to a certain extent. Obviously, the penetration has increased over the past years. We don't have the special economy like COVID. If you take a look at our track record and just go back up until 2020 and take a look at our net adds, we have constantly generated somewhere in between 50,000-70,000 net adds every quarter. We're clearly a share gainer in, in that market. The second point is, we're building a network which allows us to upsell for quite some time, right? Which is the fiber network. You see that the customer monetization by selling higher speeds is working. You see it on that chart, with a 43%, we continue to believe that this is happening in Germany, the more for more strategy in broadband, which gives us quite some runway. Our perspective is we don't care what the others are doing. We want to basically be always above our internal target, and we want to be share gainers in the broadband market, despite the fact that the market is coming down. I don't expect any kind of significant change in the broadband net adds in the upcoming quarters. We'll see how it develops. Let me, let me add one, one thing. You know, what, what always irritates me, or say differently, what motivates me, is always the situation if in other industries, in the food industry, one player is suffering, that doesn't mean that the market leader is suffering as well from a stock performance. Because, you know, they look on each of the business. If in the, in the movie industries, you know, take an example, Time Warner, has a flop, you know, it might affect their share price, but it's not automatically affecting Disney and others. So the question is: Why is this in our industry different? Why is a bad message, which is, you know, triggered between 1&1, Vodafone, and O2, affecting Deutsche Telekom? We are not affected at all from this, from this business, and on a short term, anyhow not. There's even an opportunity for us because, you know, 1&1 has to move 12 million customers from one network to another with all the change in experience. It's a big opportunity for us as well. We're still affected, and you saw the decline on our stock. The reason for that one is it looks like that our selling story of that we are different, that we are differentiating, is not strong enough. Look, I can always argue saying our brand is superior compared to all the other brands in my home market. Superior! We just, you know, released the, the brand buzzer. The second thing is, you know, we can say our network is superior to Vodafone's or O2 networks or 1&1 attempt here. This is clear as well. We can always ask our service, and our Net Promoter Score is the highest in the industry. It looks that we are not able so far, that investors would look at us and say: "By the way, there is something happening in this market. We don't care. Deutsche Telekom is, you know, stable anchor in this environment because they're differentiating in their landscape," which we are doing. Look, we had a quarter, a record quarter in Germany. You guys, we had more than 800,000 customers on the first half year in the mobile market. We are, we are absolutely outperforming both in our fixed line and in our mobile market, despite the fact that we have the highest prices. We are differentiating, and that is my attempt of going forward with the things. Put your blinkers on and differentiate in the market. That at one point in time, we are not affected by some stupid moves, because you will always have some stupid moves in this environment, which a strategic investor doesn't understand, and by the way, either, you know, some leaders in this industry. Therefore, this is, I think, the motivation which I get out of the current situation, that we are, that we are not anymore affected by some ridiculous moves. The same is true, by the way, as well for the U.S., you know, with regard to the DISH rumors here. I think, you know, unfortunately, we're still perceived being in the same camp. Okay. Thank you, guys. And, with that, we move on to Emmett at Morgan Stanley, please. Yes, good afternoon, everybody. Thank you for taking my questions. I've got two questions, please. My first question is on data centers. Tim, you talked a little bit earlier about, you know, stimulating growth and very limited growth in the European macro backdrop. You talked a little bit about data sovereignty. You talked about hyperscalers. One area of the market that continues to see very, very strong growth is the data center market, and you may have seen that your towers partner, Brookfield, has made a very big investment in French data centers. As DT looks for areas to deploy capital in, would data centers be an area that you would look to perhaps invest more in the future? My second question, just a little bit more of a vanilla question, is on the European business. Clearly, Dominique doing a great job at T-Europe. We've seen accelerating EBITDA growth trends. Can you just talk a little bit about the outlook for that business over the coming quarters, in particular, as we lap the higher energy costs that we saw at the end of last year? Thank you. Look, Emmett, the answer is yes, we have looked into data centers. We are operating data centers, by the way, in Germany, we are running the biggest data center in Markthebuchmühle. With T-Systems, we have a lot of data centers our own, with Itenos, we have even, you know, an operator here in our portfolio, developing data centers. Have we invested into data centers? Not directly at the DT level, but we have done a lot of things in DT Capital Partners. By the way, this business is exploding. You're totally right. There is a lot of, let's say, push. I just had a discussion with our CEO of DT Capital Partners, Vicente Vento, who is doing a terrific job. He has invested big time into German data centers, with the sovereign cloud development, which is rising, there is a super demand for data centers in this constituencies here. On top of that, you know there's a shortage of data centers due to AI applications and the LLM models, which require, let's say, storage. Therefore, you know, this is a market where DT Capital Partners is investing actively while we are sitting here. We have customers, I just got the story, who are waiting even two or three years now to get the capacities which have to newly been built, just to get their data centers here on the, in the environment of Germany or in European constituencies. Yes, the only question, and I want to be a little bit, say, turn down your expectations. Look, we have invested almost EUR 9.2 billion in the first half year at Deutsche Telekom. We are focusing very much on three areas. You know the first two immediately. The first one is fiber, the second one is 5G. The third one is our IT and the automation of our company. You know, even from a productivity perspective, we get more bang for the buck, and on top of that, the legacy systems, both sides of the Atlantic, we have to retire, and we have to modernize them to gain cost efficiencies as well. Our percentage of cost of IT in the group is too high, and we want to reduce it, but we cannot get that for free. We have to do something for that. Our additional, let's say, money, which we can now spend for building data centers, is something I'm hesitating to extend that. First things first, DT Capital Partners with their internal and external funds have the opportunity to, to this. With T-Systems, we are developing this data center market. As you know, Google Cloud is one of the drivers in the sovereign environment for T-Systems. One of the reasons that the order entry hasn't been that strong in the first half year is that this deployment is a little bit delayed, so we cannot go full steam in the acquisition here yet. I just had discussions with Sundar and with the T-Systems teams, we will deliver on this service soon. Emmett, on the Europe question, let me start with first, price increases work, right? In Austria, we have CPI-linked pricing. It works. In Hungary, we have taken significant steps in terms of increasing prices to offset the extra, extra tax, which we have to had to absorb. This is something which has not come to an end yet. This is what I would expect also for the upcoming quarters. Second one is, the monetization of fiber in Europe really works well. If you take a look, we're building out roughly 1 million lines every year. Still, our utilization of the total footprint is increasing. From this perspective, this is also a trend which will carry on for many years. Thirdly is, obviously, energy costs create a headwind relative to last year, and it continues to be the case in the second half. We had scenarios in autumn last year, where we expected significantly higher energy prices than we're actually seeing. And what, what is the prediction, especially when it comes to the forward pricing, is that the market price will come down, not to the previous levels. It's probably at the vicinity of 2x-3 x the pre-crisis levels, but it will come down relative to what we're seeing right now. Hopefully, this turns out to be true for the upcoming years. The fourth one is, Europe, as well as the German segment, has to work on its transformation, and that means that we have to reduce the indirect cost structure significantly, that we basically, I would say, it's the wrong word, exchange people by technology, but I think essentially this is what we're doing. This is why we're engaging in AI, AI. That will, will be something which, which Europe will also engage in, and historically they have performed well, and I believe that they're outperforming competition in, on, on those dimensions as well. I'm, I'm confident with regard to the market, but energy is a headwind. Salary increases are a headwind. That's clear. The nice thing is also that the price increases did not dent the customer momentum in the markets. As you can see, it's very consistent. We always try to have a good balance of customer growth and financial growth and, of course, continued investment. Thank you, Emmett. Now we move on to Josh at Exane, please. Thanks, guys. two questions from my side, both on fiber. The first one is just regarding the Altnets. There's been a number of articles recently which have highlighted examples of Deutsche Telekom rolling out fiber in areas where the Altnets have also announced plans, and in some cases, that looks to have resulted in the Altnets withdrawing from the market. I believe this is something the regulator is looking at more closely. The first question is, could you maybe just give an idea of how you view this situation and perhaps an indication of how big the overlap between your fiber and Altnet fiber is today? The second question, perhaps you could give a bit more detail around the GdW agreement, what the pipeline looks like for building fiber to housing associations, and whether you will be present in lots of these ahead of the Nebenkostenprivileg changes coming in next year. Thanks. Look, this discussion about overbuilding and overbuilders, I can tell you, this is a myth, an entire myth. We let the facts, you know, talk here in this regard. I think it is an excuse for underperformance and for misjudging their own business cases. You know, their take-up rates were wrong, the pricing assumption for that market were wrong, probably even, you know, they were hit by interest rates, which they haven't foreseen. On top of that, the inflation is hitting their build-out costs, and now they're trying to gain more of the market, and then they're complaining that, you know, Deutsche Telekom is overbuilding them. It's a myth. By the way, you know, you can just take the facts. We have looked into the facts now on a detailed basis, what we found out is, Look, I, I'm not talking about that these guys are overbuilding 100% of what we have, which is our copper network. Take that outside. Just look for fiber overbuild. We have more fiber overbuilds from Altnets than we are overbuilding them. We identified 600,000 of our fiber, which was overbuilt by or is gonna be overbuilt by the competition, while we have a significantly lower portion. We believe it's the vicinity of 2% in the areas. By the way, this is just based on the announcement of areas. It's not about the real areas where they have built fiber already. We have clearly stated that, you know, our plan is to be the undisputed German fiber leader. We have clearly stated that, you know, we have the ambition to build in the rural and in the city areas. Therefore, you know, I think, this is a marginal debate. It is maybe 2% of the whole build-out, which we, which we see. It is in the vicinity, maybe of 400,000, 500,000 FTTH houses, which are announced. I don't see that there is a will, not, nor there is really a need for any kind of regulation or impact from political, from political actions here. If you look to countries like France or Spain or Portugal, you know, where we have seen overbuilds of 70%, or in France and U.K. of 20% overbuilt, Germany is by far beyond that. It stays, and I'm very clear on this one: we are interested in partnering where it makes sense for us. We are interested in collaborating. If the conditions are on a fair basis here, then we allocate our money somewhere else. We have 30, you know, partners and collaboration agreements with municipalities, with local build-out companies, and we are willing to do so. We are not willing to let our customers, you know, hang out only with an alternative of a competitor. We will then try to offer them a service as well, if we don't find a collaboration here. Look, the-- I would answer, like to answer the question on GdW, in a greater perspective on the abolition of the rental privilege. You know, it's on us to win and for many others to lose. You've heard some of our competitors saying that they're expecting, in a best case, to retain 60% of their TV customers. We don't know exactly how many of those customers will actually be cord cutters and how many will basically get in into our IPTV offering. For us, it's important to accelerate the opportunity in the broadband business, in the housing associations. GdW is an association which represents 7 million ho- homes. It's fairly large, and it's a frame agreement which lays out how we're building out in the house on, what is that? Network level four, what are the terms and conditions. Every housing association can decide on its own whether they're following that frame agreement, yes or no. I think it's a massive simplification in order to address those those housing associations, because you have a frame agreement which is supported and agreed upon by the biggest association for for the mid-sized, I would say, housing associations. For us, for me, it's very much a simplification, how we address market opportunities. To what extent they will basically come depends obviously on the on the on the contract duration of the existing agreement. We have celebrated this quite a bit because we don't have to go housing association by housing association. We have a frame agreement endorsed by the biggest association for the housings. The biggest, how do you call this? Yeah, association for the housing association. Okay. Lots of associations here. Yeah. It's. Yes, we are always good, good to have so many associations. Anyway, Usman, at Berenberg. Usman, can we have your questions, please? Hi, everyone. Thank you for the opportunity. I've got two questions, please. The first one was, this question about, you know, might be a quarter early, but just on the dividend to be kind of announced and paid in 2024. I mean, if I look at consensus EPS of around 1.62, which is in line with your guidance for north of EUR 1.6, then take a 40%-60% payout ratio of that, you get to EUR 0.65-EUR 0.96. It's quite a wide range. If I look at the div swap market, that's pricing in a dividend of roughly EUR 0.74. Now, now, given that, you know, you, you've got some visibility from the rating agencies and some good news there, you know, how, how are you thinking about, you know, where you land up on the payout ratio, particularly given, you know, what the share price is doing and what you can announce to shore up investor confidence around, you know, your prospects? So just a, just some idea of how you're thinking there would be, would be of interest. The second question was, you know, going to a comment made by one of your competitors, with regards to, you know, the operators potentially, looking to do national roaming on 900 megahertz spectrum. The idea here being that if you do this, you know, you potentially release some capacity that can be leased out to 1&1 and avoid an auction altogether next year. You know, do you think this is a good idea? If not, could you indicate why you, you might not think this is a good idea? Thank you. Oops! Hi, Usman. On the dividend, I think if I summarize to what you have said, is I heard a lot of growth.... right? We will not, we will not talk about the dividend to be paid out in 2024. You know our cadence, usually it's Q3 where we're discussing this. We have to consult with the supervisory board on what is the right level for, for an upcoming dividend. We're growing EPS, Adjusted EPS, and that should basically give you a positive sentiment on what's happening on the, on the dividend. I cannot qualify the range, which by the way, is also far, right? EUR 64-96. I cannot make a clearer statements like what I said early on. Wait a little bit. It's not too far away that we're gonna have our Q3 call. Look, we have not, you know, something, you know, tangible lying on the table with regard to the 900 MHz spectrum. Therefore, you know, let me answer that question more from my gut feeling than from my brain. I have to say that I'm observing some stupid moves from competitors in this environment. I do not wanna lay in the same bed, and the destiny of my network and my infrastructure is defined by people who make mistakes, strategic mistakes in their markets. Therefore, I have to say that I'm hesitating a little bit to collaborate my network with other networks, not knowing what, what's happening with my network then later on. Therefore, I'm more distanced to this idea right now. Thanks, Tim. With that, we next move on to James at New Street. James? Yes, good afternoon, and thank you very much indeed for taking the, the questions. So the first question I had follows up from a response you gave earlier, Christian. You said, "Pricing works," when asked about some of your Eastern European markets. I was wondering if we could just pivot that question then to Germany, please. You know, we've, we've heard a lot of your growth drivers from getting customers to increase speeds, from your net adds growth, but would just be interested to hear a bit more about how you see pricing as a lever for driving growth going forward in Germany. Second question I had, please, was on British Telecom. I mean, I think two years ago, you said you'd be the, the kingmaker in that asset. You know, earlier this year, Tim, you gave, I think, quite a strongly worded interview to the Financial Times on your views on British Telecom. You've still got your 12% stake. I'd love to hear your thoughts on, do you think a year from now you'll still have your 12% stake, or do you think there's an opportunity for change there for your stake, either up or down? Thank you. On pricing, look, first of all, I love to be a share gainer in the markets I'm working in, whether it's being mobile or whether it's being broadband. Mm-hmm. We have been share gainers for quite some time in broadband. We talked about this. I think we're calling for a premium in broadband already, and I wanna stick with my customers long term. You've seen the financial performance in Germany. I think they're trailing at this 3% organic EBITDA growth since I don't know how many quarters, but probably more than two years. From this perspective, as long as I can differentially grow faster than my competition with my pricing, why should I disappoint customers, especially in my base with a price increase if it's not necessary? Yeah. Because they have a long-term memory. Same holds true for Next Magenta. We have 320,000 net adds in Next Magenta, that gives us a 2%, mobile service, market revenue growth. Despite the drags and the tailwinds and all this stuff, the underlying is actually higher. I think a price increase, if you can avoid it, I think drives up loyalty, and right now we can avoid it, so we're not forced to do price increases in Germany. That is different in the European segment because the cost impact, being it indirect costs or being it energy cost, in Europe, has been massively larger than it has been in Germany. For me, it's, it's more a loyalty question: Do I achieve my, my earnings growth, ambitions, and how do I keep my customers long-term with me in good as well as in bad times? I can't believe that I should have been so arrogant in saying that I'm the kingmaker, you know, probably true. Anyhow, that said, look, BT is a tricky thing. Are we happy with where the company stands? No. Are there a lot of, let's say, green lights in the business? Yes. If you see what this company has, you know, ticked over the last, you know, quarters, it's quite impressive with Equinox I and II, with, let's say, the developments on the fiber build-out. Therefore, you know, even, you know, the interest rates, you know, is helping them on their pension side. Look, there is a lot of things which we, you know, a lot of, let's say, the, the, the, the concerns, you know, investors had are, you know, disappeared, but nevertheless, the share price haven't reacted on this properly. There's still a way to go, without going into the detail of that business, because, you know, I'm an outsider. I'm looking from the outside on that business. One of my colleagues sits in the board. I think this company's very well positioned for convergence. And, it's, it's, I, I'm strong believer that this company is gonna be successful on the midterm, on a long-term perspective. Now, today, it is not, you know, showing it. So, so therefore, we have to find the right ways of approaching it. I'm open for every idea which is accelerating the value-enhancing story here. I always said that. Therefore, we have to see now with the new CEO and all these kind of things, you know, how this is evolving. I cannot, you know, release, you know, what kind of scenarios we have. It's clearly something which, where I wanna see an improvement over the next, you know, 12 months. Because, you know, we are waiting already for quite some time, and having this BT asset in our pension fund doesn't mean that it is not actively managed. I'm sorry for not being maybe very precise on this one, but, this is due to the capital market condi- concerns, and it not, not possible. Let's see how we, how we drive it forward. Okay, I think we were trying to get a question in from David at Bank of America, but somehow it technically w- doesn't seem to work, so my apologies for that. With that, we also come to the end of today's Q&A session. We'd like to thank you for participating. Of course, if you have further questions, please contact the investor relations department, and we look forward to see you o- on the conference circuit or otherwise, and have a good rest of the day and a nice summer from here. Thanks. Bye.