Deutsche Telekom Investor Day Presentation Deck slide image

Deutsche Telekom Investor Day Presentation Deck

T-MOBILE US, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (UNAUDITED) Our Free Cash Flow for the year ended December 31, 2020 and current guidance ranges for Free Cash Flow are reconciled to Net cash provided by operating activities as follows: Current FY 2021 Mid-Term 2023 Historic FY 2020 $8,640 (11,034) Cumulative 2020-2025 (¹) $103,900 $106,800 (62,000) (66,000) 21,000 22,000 (200) (100) 3,134 (82) 658 (in millions) Net cash provided by operating activities Cash purchases of property and equipment Proceeds related to beneficial interests in securitization transactions (3) Cash payments for debt prepayment or debt extinguishment costs Free Cash Flow Gross cash paid for the settlement of interest rate swaps Free Cash Flow, excluding gross payments for the settlement of interest rate swaps Free Cash Flow 2,343 $3,001 Our previous guidance ranges for Free Cash Flow as of April 2018 were as follows: (in millions) 1. 16-year period starting with the year when the merger was expected to close, which was 2019. $13,200 $13,600 (11,700) (12,000) 3,700 3,900 (100) 5,100 5,500 $5,100 $5,100 $18,300 $20,100 (9,000) (10,000) 3,700 3,900 1. 6-year period starting with the year when the merger closed, which was 2020. Thus, this guidance includes actual Free Cash Flow for the year ended December 31, 2020 and five additional years of guidance. 2. The mid-point of the guidance range is used for purposes of this reconciliation. 3. Free Cash Flow guidance does not assume any material net cash inflows from securitization. 13,000 14,000 $13,000 $14,000 Mid-Term 3 to 4 Years $10,000 $11,000 Mid-Term 2024 $21,300 $24,100 (9,000) (10,000) 3,700 3,900 16,000 18,000 $16,000 $18,000 Cumulative 6 years (¹) $55,000 62,700 2,300 $65,000 Long-Term 2026 (2) $23,700 (9,500) 3,800 $16,000 Long-Term 7 to 8 Years 18,000 $18,000 $18,000 This guidance was prepared based on internal forecasts and models prior to the Company's adoption of ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" which impacted the presentation of (1) cash flows related to beneficial interests in securitization transactions resulting in a reclassification of cash inflows from Operating activities to Investing activities and (2) cash payments for debt prepayment or debt extinguishment costs resulting in a reclassification of cash outflows from Operating activities to Financing activities. As a result, at the time the guidance was publicly released in April 2018, T-Mobile was not able to forecast GAAP Net cash provided by operating activities on a forward-looking basis without unreasonable efforts due to the Company's adoption of ASU 2016-15 on January 1, 2018.
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