Annual General Meeting of Telefónica Deutschland:

Leading digital telco strategy meets with strong approval

-CEO Thorsten Dirks: "We are use the opportunities of digitalisation and position ourselves for the digital future."
-AGM approves dividend of EUR 0.24 per share.
-Outlook for current financial year confirmed
For the first time since the merger with the E-Plus Group, the shareholders of Telefónica Deutschland Holding AG met today in Munich. A large majority of the approximately 120 shareholders in attendance in the Alte Kongresshalle in Munich voted to approve the resolutions proposed by the Management Board and Supervisory Board. The management also provided extensive information on the company's strategy en route to becoming Germany's leading digital telco.
CEO Thorsten Dirks
In the words of Thorsten Dirks, who assumed duties as CEO on 1 October, the main focus of the strategy is on customers and their needs in the age of digitalisation. "We want to build the leading digital telco in Germany," said Thorsten Dirks, addressing an AGM of Telefónica Deutschland for the first time. "We will achieve that by offering our customers both the best network experience and the best customer and service experience." With regard to the integration of E-Plus, Telefónica Deutschland is making good progress according to Dirks. This applied to the appointment of the management as well as to the execution of the staff reduction program and the consolidation of the retail footprint. In addition, the merger represented a unique opportunity to advance the company's transformation at an even faster pace: "If we must rebuild many structures and processes in the course of the integration, then we can and should do it properly right from the start. By that I mean: We are using the opportunities presented by digitalisation and position ourselves for the digital future. We will be even more customer-oriented, leaner and more agile."

Investments in the best network

From left: Thorsten Dirks, Rachel Empey, Markus Haas
Rachel Empey, who, as CFO, is responsible for finance and strategy in the Telefónica Deutschland Management Board, reported on the development of business in 2014. "We want to build on our position as Germany's largest mobile provider in terms of customer numbers. In that regard, the positive trend in mobile service revenues in recent quarters underscores our success in monetising mobile data business", she said. In addition, the CFO reaffirmed the outlook for the current financial year. She expects continued business dynamics and a more than 10 percent increase in OIBDA before extraordinary effects from the combined baseline of 1,461 million Euro in 2014. "Our new size will provide tangible benefits for our customers and shareholders," she added.

Dividend payout ratio still attractive

Annual General Meeting (AGM) 2015
In the course of voting on the resolutions, the shareholders voted to approve the appropriation of profits as proposed by the Management Board and Supervisory Board. The shareholders of Telefónica Deutschland Holding AG will receive a dividend of EUR 0.24 per share for the 2014 financial year (previous year: EUR 0.47). However, through the merger with E-Plus, the number of shares eligible for dividend payouts approximately tripled as compared with the previous year. Consequently, the approx. EUR 714 million distributed for 2014 is more than one third higher than the amount in the previous year (EUR 525 million). This agenda item was approved by 99.7 percent of the shareholders. Along with other decisions, the shareholders voted to discharge the Management Board and Supervisory Board. In addition, Ms Laura Abasolo García de Baquedano was elected to the Supervisory Board to replace the departing member Ms Maria Pilar López Álvarez. The presence of the company's share capital amounted at the AGM amounted to approx. 90.5 percent.

Further Information:

AGM 2015 in Munich: Download photos Investor Relations: AGM 2015 Annual Report 2014