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February 23, 2012
Disclaimer.


This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect
to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings,
profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with
caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond
Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our
workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business
initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In
addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other
factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets,
and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of
financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of
assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other
risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance
may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our
estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any
obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures,
including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income,
free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for,
the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other
generally accepted accounting principles. Other companies may define these terms in different ways.




                                                                                                                                      2
Agenda.
Deutsche Telekom Results Presentation.



                               René Obermann
                               CEO




                               Timotheus Höttges
                               CFO




                               Philipp Humm
                               CEO T-Mobile USA


                                                   3
FY 2011 results and outlook.
FY 2011: Highlights.


                                               Group revenue of €58.7 billion (-2.5% underlying)1
                                               Targets achieved with €18.7 billion of adj. EBITDA and €6.4 billion of free cash flow
             Group                             Net profit of €0.6 billion impacted by exceptional write-offs
                                               Dividend of €0.70 proposed to AGM
                                               Save for Service target overachieved with €4.5 billion one year ahead of schedule


                                               Adj. EBITDA stabilized over previous year, adj. EBITDA-margin of 39.9%; 1.2 billion of net cost savings
                                                Market leadership in mobile service revenue and broadband defended
          Germany                          
                                               Growth in VDSL (+78%) and Entertain customer base (+34%); mobile contract net adds +1,048k after -29k in 2010;
                                                Line losses declining further (-21%), Broadband customer base growing (+311k)



                                               Markets still suffering from weak economic conditions and regulation
                                                Despite weak economy good market performance in broadband (+5%), TV (+12%), IPTV (+24%) and mobile contract
            Europe                         
                                                customers (+3%). Smartphone share increased by 20pp to 54% of dispatched devices
                                               Cost cutting of €0.7 billion (excl. T-Mobile UK) results in slightly improved adj. EBITDA margin of 34.6%



                                               Net cost base reduction leads to satisfying adj. EBITDA of US$ 5.3 billion
                US                             Revenue of 20.6 billion US$ (-3.3%) and decline in contract customers
                                               After termination of merger agreement and receipt of the break-up fee re-investment needed in 2012




1) 2010 adjusted for de-consolidation of T-Mobile UK, 2011 adjusted for impact of currency and regulation                                                        5
FY 2011 Guidance achieved.


                                                                FY Guidance and achievement in 2011 (€ billion)
                             Adj. EBITDA                                                FCF

                                              ~19.1 18.9
                                                                   0.2 F/X impact1
           14.9 14.9

                                                                             Min. 6.5         6.5
                                                                                                     0.1 F/X impact1
                                                            18.7                                                       Dividend of €0.70 per
                                                                                                                       share or € 3 billion in total
                                                                                              6.4                      comfortably covered by
                                                                                                                       free cash flow
                                                                                                                       (pay out ratio of 47%)

         Group ex. US                        Group incl. US                 Guidance          2011


                 Guidance                   achieved in 12M




1) Mainly US$. Guidance rate was 1.33, FY 2011 actual is 1.39                                                                                          6
2011 Key financials.


€ million                                                            Q4/10                        Q4/11 change in %                                          FY/10                         FY/11 change in %
Underlying revenue1                                                 15,477                       15,129                         -2.2%                       61,663                        60,102                 -2.5%
Revenue                                                             15,477                       14,911                         -3.7%                       62,421                        58,653                 -6.0%
Adj. EBITDA                                                           4,550                         4,611                        1.3%                       19,473                        18,685                 -4.0%
Adj. net profit                                                           758                            -92                         n.a.                     3,364                         2,851               -15.2%
Net profit                                                               -514                     -1,340                             n.a.                     1,695                             557             -67.1%
Adj. EPS (in €)                                                          0.18                        -0.02                           n.a.                        0.78                          0.66             -15.4%
EPS (in €)                                                              -0.12                        -0.31                           n.a.                        0.39                          0.13             -66.7%


Free cash flow2                                                       1,733                         1,887                        8.9%                         6,543                         6,421                -1.9%
Cash capex3                                                           2,521                         2,147                    -14.8%                           8,532                         8,260                -3.2%




1) 2010 adjusted for de-consolidation of T-Mobile UK, 2011 and Q4 2011 adjusted for impact of currency and regulation   3) Adjusted for spectrum investments (€ million 146 in 2011, € million 1,319 in 2010)
2) before dividend payments, break-up fee, PTC settlement and spectrum investments                                                                                                                                   7
FY 2011 Growth Areas.


                                                                                                                                                                                             Ambition
            Deutsche Telekom growth areas1                                                         FY/10                        FY/11                                   Change
                                                                                                                                                                                              2015
       Revenue (€ billion)
       Mobile internet                                                                                4.4                          5.2                         0.8                    18%      ≈ 10


       Connected Home2                                                                                6.2                          6.3                         0.1                   1.7%      ≈7
       thereof GER                                                                                      5.1                          5.3                         0.2                  2.4%


       Online consumer services3                                                                      0.9                          0.9                         0.0                   -1.8%     2-3

       T-Systems external revenue4                                                                    6.4                          6.5                         0.1                   1.2%      ≈8
       incl. Cloud Services


       Intelligent networks                                                                              -                         0.1                            -                   -        ≈1
       in Energy, Health, Media Distribution, Connected Car




Absolute and percentage change calculated on the basis of millions of €




1) Figures include T-Mobile US                                3) Figures adjusted for discontinued cash card business
2) Figures adjusted for new reporting logic Germany 2011      4) Difference to reported segment figure due to “Intelligent networks” which is part of the reported segment figures                      8
Outlook 2012.


                                                Adj. EBITDA around € 18 billion (based on constant currency)
  Guidance 20121
                                                Free cash flow around € 6 billion


                                                Execute on challenger strategy in the US, committed to solve long-term strategic challenges
                                                Maintain market leadership and stabilize underlying adj. EBITDA in Germany
                                                Defend cash flows and maintain market-leading position in Europe
       Operations
                                                Further external revenue growth and margin improvement at Systems Solutions
                                                Continued focus on mobilizing the internet, connected home and convergent offerings
                                                Drive innovation in areas like cloud, payment and content



                                                Further execution on efficiency programs
    Save 4 Service
                                                Transformation projects like “shape headquarter”, centralization of IT functions in Germany underway


                                                Based upon 2012 guidance €3.4 billion shareholder remuneration and €0.7 minimum dividend per
    Shareholder
                                                 share intended.
   Remuneration2
                                                Execution and timing of share buyback has not yet been decided by the management


1) Based on the assumption of constant currency = average exchange rates of 2011 (1€ = 1.39 US$); no further significant deterioration in the economic and regulatory environment in the markets we operate in; before cash payments
   connected to break-up fee.
2) Subject to necessary board approval and AGM resolution
                                                                                                                                                                                                                                     9
Q4 2011 results operational overview.
Q4/11 Overview.


                  Revenue (€ million)                                        Adj. EBITDA (€ million)

                          -3.7%                                                          1.3%
    15,477                                   14,911                4,550                                      4,611
                    -81            -485                                          -28              89




     Q4/10          F/X           Organic    Q4/11                Q4/10         F/X             Organic       Q4/11


          Revenue Q4/10 vs. Q4/11 (€ million)                      Adj. EBITDA Q4/10 vs. Q4/11 (€ million)
                                                  6,442       Germany                                                  2,358
Germany                                                                                                               2,286
                                               6,047
                                                                 USA                             1,000
   USA                               3,942                                                        1,043
                                    3,848
                                                               Europe                                1,265
                                     3,913                                                            1,311
 Europe                             3,772                                              299
                                                                 SYS                   282
   SYS                    2,479                       Q4/10                                                           Q4/10
                          2,457
                                                      Q4/11      GHS -324
                                                                      -289                                            Q4/11




                                                                                                                               11
Germany: further improved EBITDA margin –
revenue not satisfying.

            Revenue (€ million)                              Adj. EBITDA (€ million)

                    -6.1%                                             -3.1%



 6,442   5,991      5,989      6,004   6,047    2,358       2,384     2,439      2,490      2,286



 Q4/10   Q1/11     Q2/11       Q3/11   Q4/11    Q4/10      Q1/11     Q2/11      Q3/11       Q4/11


            Adj. opex (€ million)                          Adj. EBITDA margin (in %)

                    -8.1%                                                      41.5
                                               42                    40.7
                                                           39.7
                                               40
 4,262   3,734      3,664      3,621   3,917        36.6                                 37.8
                                               38
                                                                                                +1.2pp
                                               36
 Q4/10   Q1/11      Q2/11      Q3/11   Q4/11    Q4/10      Q1/11    Q2/11     Q3/11      Q4/11




                                                                                                     12
Germany revenue: continued focus on data & TV opportunity.


                   Fixed network revenues (€ million)1                                                                                   Mobile service revenue2 (€ million)

                                                  -7.8%                                                                                                                +0.4%



      4,376                 4,063                 4,045                  4,027                 4,036                       1,756                  1,747                1,767    1,815   1,763



     Q4/10                  Q1/11                 Q2/11                 Q3/11                 Q4/11                        Q4/10                 Q1/11                 Q2/11    Q3/11   Q4/11


                     2play + 3play customers (million)                                                                   Mobile data revenue (€ million) and as % of ARPU
        double play            triple play
                                                                                                                                                                       +31.7%
                                                  +2.6%
                                                                                                                                                                        409     410      440
                                                                          12.2                  12.3                                               384
        12.0                  12.1                  12.2                                                                     334
                                                                                                                                                                        24%             25%
                                                                                                                                                  23%                           23%
        10.8                  10.8                  10.9                  10.8                  10.7                        19%

         1.2                   1.3                   1.3                   1.4                   1.6
      Q4/10                 Q1/11                 Q2/11                 Q3/11                 Q4/11                        Q4/10                 Q1/11                 Q2/11    Q3/11   Q4/11




1) “Fixed network” revenue includes revenues from Fixed network, Wholesale services, Online consumer services, Value-added services and Fixed network related others
2) Adjusted for the reduction in MTR–rates (Q4 = €35, Q3 = 58, Q2 = 61, Q1 = 57 millions of € revenue)                                                                                          13
Germany: #1 in broadband and mobile service revenue.


  Broadband access lines (million) and market share1                                                                       Line losses 21% below last year: 295k in Q4. (373k in Q4/10)
                                46.1%           45.8%           45.7%            45.5%           45.3%
                                                                                                                           Broadband customers +3%: 12,265k, 64k net adds in Q4
                                                                                                                           Entertain customers +34%: 1,553k total, 177k net adds in Q4
                                 25.9            26.3             26.6            26.8            27.1
                                  2.8             3.1              3.2             3.3             3.6                     Retail fiber-customers (VDSL) +78%: 608k total, 88k net adds
       Market share
                                                                                                                            in Q4
                                 11.2            11.3             11.3            11.3            11.3
       Cable                                                                                                               Successful upsell strategy results in stable ARPA (+1.5%) Q4
       DSL competitors                                                                                                      over Q4.
                                 12.0            12.1             12.2            12.2            12.3
       DT                                                                                                                  “Landmark deal” with Deutsche Annington signed in Q4
                               Q4/10           Q1/11           Q2/11            Q3/11           Q4/11


 Mobile service revenue (€ million) and market share2                                                                      Ongoing strong growth in mobile data revenues: €440 million
                                                                                                                            (+32% yoy)
                               35.3%           35.7%            35.2%           34.9%           34.5%
                                                                                                                           Mobile contract net adds of 387k – strong emphasis on service
                                4,971            4,739           4,847           5,034           5,006                      provider and value segment
       Market Share                                                              1,757           1,728                     Record iPhone sales: 476k in Q4. Full year 1.2 million, despite
                                1,756            1,690           1,706
       Telekom                                                                                                              loss of exclusivity only 1% below last year’s level
       Vodafone                 1,685                            1,646           1,703           1,701
                                                 1,627
       E-Plus
                                  781             736             768             805             790
       O2
                                  749             686             727             769             787

                               Q4/10           Q1/11           Q2/11            Q3/11           Q4/11



1) Company estimates; Rounded figures; Incl. reseller (competitor resale and resale); Q1/11 adjusted mainly due to changes in KDG reporting structure
2) Company estimates, incl. revenues from stationary wireless solutions (Call and Surf via Funk) since October 1, 2011                                                                  14
Germany: network roll-out and successful positioning.


Mobile network population coverage and fiber link-up                                   Successfully re-vitalized Service Provider segment
                                                                                      Net Adds contract in k.
         99% 99%
                                   83% 86%                           73% 83%                     DT          Service Provider   1.048
                                                                                                                                 268
                                                            14%                                                                 780
                                                      1%                                              327
                                                                                                      -357
        2G coverage               3G coverage       LTE coverage    % of 3G sites
                                                                                                       -30
                                                                    with fiber link
     Q4/10              Q4/11                                                                         2010                      2011


              Broadband rollout (as % of access lines)                                                 Major network awards won

                                                                          82%

                                              49%   53%            54%
            30%          34%



          VDSL coverage                       DSL 16,000+     Entertain coverage
             (FTTC)                            coverage          (incl. SAT)1)




1) DSL-access of at least 3 Mbit/s required                                                                                                 15
Europe – growth in key market KPIs.


                                 TV customer (million)                                                                                                   Smartphone share1
                                                  +12%                                                                                                                  +59%
                                                   2.59                   2.62                  2.64                                                                              50%     54%
       2.35                  2.41                                                                                                                                        46%
                                                                                                                                                  43%
                            0.71                   0.73                  0.77                  0.81                         34%
      0.65
                                                                                              IPTV +24%
                                                                                              IPTV +24%


      Q4/10                 Q1/11                 Q2/11                 Q3/11                 Q4/11                        Q4/10                 Q1/11                 Q2/11      Q3/11   Q4/11


                        Broadband accesses (million)2                                                                                  Mobile contract subscriber (million)2
                                                   +5%                                                                                                                   +3%

       4.58                   4.71                  4.75                  4.75                  4.81                         26.3                  26.5                  26.6     26.8    27.1




      Q4/10                 Q1/11                 Q2/11                 Q3/11                 Q4/11                        Q4/10                 Q1/11                  Q2/11     Q3/11   Q4/11




1) Percentage of smartphones in dispatched devices (excl. OTE, Slovakia, Macedonia and Montenegro); 2) incl. business customers shifted to T-Systems in Hungary as of 1.1.2011.                   16
Europe – integrated markets: focus on robust margins in difficult
environment.
                                                                                                                        Greece:
                                    Revenue (€ million)
                 -7%                                                                                                     Q4 with strongest adj. EBITDA performance in year 2011, margin
                                                                -10%                                                      increased yoy by 1.2pp
                                         -5%                                             0%
             937 867                                                                                                     Strong position in declining mobile market

                                                             407 368                                                     Sale of 20% stake in Telekom Serbia for €380 million will support
                                     278 263                                        232 231                               refinancing of OTE

               Greece                 Croatia                                        Slovakia                           Croatia:
                                                             Hungary1
                                                                                                                         Revenue driven by F/X and regulation.
                                                                                                                         Adj. EBITDA growth due to strong performance in mobile (+47%yoy)
                                Adj. EBITDA (€ million)
                                                                                                                         Underlying mobile service revenue (excl. regulation and F/X) with 4%
                 -4%                                                                                                      growth
                                       +16%                     -16%                   +11%
                                                                                                                        Hungary:
             335 321
                                                             152 128                                                     Underlying revenue (excl. tax, regulation and F/X) -0.2%
                                     113 131                                         82       91
                                                                                                                         Hungarian broadband (+5%), IPTV (+81%) and mobile contract (+6%)

               Greece                  Croatia                                       Slovakia                             customer base with continued growth2
                                                             Hungary1
                                                                                                                        Slovakia:
                              Adj. EBITDA margin in %                                                                    Revenue driven by ICT acquisition in fixed
                                             49.8                                                                        Adj. EBITDA and margin improvement result of cost-cutting initiative
             35.8 37.0               40.6                   37.3 34.8               35.3 39.4                             (FTEs -16%yoy)
                                                                                                                         IPTV (+14%) and satellite (+55%) customers base with solid growth




               Greece                  Croatia               Hungary1                Slovakia                                Q4/10             Q4/11



1) Figures adjusted for special tax in Q4/10 and Q4/11 - impact: €90 million and €18 million (both on revenue and adj. EBITDA). Q4/10 figures adjusted for shift of business customers to T-Systems.
2) Incl. business customers shifted to T-Systems in Hungary as of 1.1.2011.                                                                                                                            17
Europe – mobile centric: economy and regulation impact revenue.

                                                        Poland:
                 Revenue (€ million)
                                                         Q4/11 revenue significantly impacted by F/X losses (-€47 million)
     -14%           +9%                                   Underlying revenue (excl. MTR cut and F/X) -2.1%
                                  -7%         -2%
                                                         Underlying EBITDA (excl. MTR cut and F/X) -8% due to higher release of
   475 409        427 465                                 accruals in Q4/10
                               291 270      238 234
                                                        Netherlands:
    Poland       Netherlands                 Austria     Change in tariff structure leads to catch-up of previously unrecognized
                               Czech Rep.                 revenue (€47 million). Underlying revenue (ex. MTR cut and catch-up) of
                                                          +3.7%
               Adj. EBITDA (€ million)                   Underlying EBITDA (excl. MTR cut and catch-up) +11.5%
     -18%          +43%          -12%                    Ongoing focus on contract customer growth (+11%)
                                              -20%
                                                        Czech Republic:
   187 153
                  122 174      134 118
                                            70           Underlying revenue (excl. MTR cut and F/X) -0.3%
                                                  56
                                                         Smartphone share in dispatched devices doubled to 52% resulting in an
                                                          underlying (excl. MTR cut and F/X) EBITDA of -6.7%
    Poland       Netherlands   Czech Rep.    Austria
                                                        Austria:
               Adj. EBITDA margin in %                   Q4/11 adj. EBITDA driven by market invest cycles

                               46.0 43.7                 Continuous contract customer growth (+6%)
   39.4 37.4            37.4                             Subscriber base grows to over 4 million customers
                 28.6                       29.4 23.9



    Poland       Netherlands   Czech Rep.    Austria        Q4/10     Q4/11




                                                                                                                               18
Systems Solutions: revenue growth of 2.1% in FY 2011.


                       Revenue (€ million)                                    Full year revenue growth (+2.1%) in 2011 due to
                                                                               successful closed deals in 2010 and 2011 and increasing
        External Revenues      Internal Revenues                               revenues with cloud computing
                                                                              Revenue decrease of 0.9%yoy to €2,457million in Q4/11
                                -0.9%
                                                                               driven by lower internal revenues (-4.4%yoy)
   2,479          2,260         2,276             2,256       2,457           External revenues up 0.7% to €1,726 million in Q4/11 and
   1,714                                                      1,726
                                                                               2.4% to €6,567million in FY/11
                  1,616         1,638             1,587
                                                                              Deal Highlights in 2011:
    765              644            638           669             731
                                                                               Everything Everywhere, Valora, TOTAL, Magna, Daimler,
   Q4/10          Q1/11         Q2/11            Q3/11        Q4/11            Correo España, Neopost

Adj. EBITDA (€ mn)/margin                 Adj. EBIT (€ mn)/margin             Adj. EBITDA at €282 million with a margin of 11.5%
                                                                              Adj. EBIT margin in Q4/11 slightly down to 5.0% from 5.5%
                                                                               in Q4/10
12.1%                        11.5%    5.5%
                                                                    5.0%
                                                                              Both EBITDA and EBIT improved throughout the year
                                                                              Capex was strongly and sustainably reduced in 2011 in order
        8.4% 8.7% 9.0%
                                                                               to protect cash flow
 299                          282         137          2.0% 2.4% 124          Successful S4S cost savings of €709 million in FY/11
         189   197     204                      1.3%
                                                        45   54
                                                 29
Q4/10 Q1/11 Q2/11 Q3/11 Q4/11         Q4/10 Q1/11 Q2/11 Q3/11 Q4/11




                                                                                                                                          19
Q4 2011 results financial overview.
Free cash flow – delivered on target.


            Free cash flow Q4/11 vs. Q4/10 (€ million)                                                                              Free cash flow FY/11 vs. FY/10 (€ million)

                                                                                               1,887                            6,543                                      6,421
                                                                           37                                                                406                  12
        1,733                                                                                                                                          272
                                                     374
                               257




    FCF Q4/10 Net cash from                       Capex1                Others            FCF Q4/11                         FCF FY/10 Net cash from   Capex1    Others   FCF FY/11
               operations                                                                                                              operations




1) Adj. for €83 million of spectrum invest in Q4/11 and €146 million in FY/11.FY/10 adjusted for € 1,319 million of spectrum investment                                              21
Save for Service: €4.2 billion target overachieved one year ahead
of schedule.

 Cost base development FY/10 vs. FY/11 (€ billion)                  Contribution                                         FY/2011
                                                                    by Business Unit (€ million)                         Realized
                                 -6.8%
  44.41                                                             Germany                                                   450
              0.60                                                  USA                                                       458
                          0.54                                      Europe                                                    405
                                                                    Systems Solutions                                         709
                                         2.10                       GHS                                                        74
                                                            41.39
                                                  0.21              DT Group                                               2.095
                                                                       Incremental savings realized in Q4 amount to € 0.6bn. Total
                                                                        run rate of savings at €4.5 billion. 2010-2012 target of €4.2
                                                                        already overachieved end of 2011.
                                                                       FY 2011 adj. net cost base reduction in Germany €1.2 billion,
                                                                        Europe €0.7 billion (excl. €0.6 billion from UK
                                                                        deconsolidation) €1.0 billion in the US (incl. F/X).
   FY      Changes in     FX             S4S      Net        FY
  2010      scope of                      FY    Re-Invest   2011
          consolidation                  2011   FY 2011




                                                                                                                                    22
Net income development FY 2011: Special factors.


                                               Net income FY 2011 (in € million)



       US$ 3 billion cash
       US$ 1.2 billion spectrum




    2,851                                         2,297
                                   3,000
                   1,683
                                                                 1,040
                                                                                 46                                           557
                                                                                                641            321
   Adjusted     Restructuring      Breakup     Impairment US   Impairment   Special factors Tax effect on Special factors   Net profit
   net profit    expenses         fee effect                     Europe      in financial special factors attributable to
                 and others                                                     result                      minorities




                                                                                                                                         23
Net debt reduced by over € 2 billion (-5.1%) in FY 2011.


                                                    Net debt FY 2011 (in € billion)




     42.3
                    0.8                                                 0.4        0.1       0.3         2.3          40.1
                                   6.4                       1.4
                                                3.5




 Net debt 2010     Others      Free cash flow Dividends      PTC       OTE put   Spectrum   Pension   Breakup fee Net debt 2011
                 (incl. f/x)                              settlement    option    invest    funding




                                                                                                                                  24
Balance sheet ratios: improved net debt over EBITDA ratio and
gearing in Q4.

in € billion                                                                        31/12/2010   31/03/2011   30/06/2011       30/09/2011     31/12/2011
Balance sheet total                                                                      127.8        123.2        123.1             124.6           122.5
Shareholders’ equity                                                                      43.0         42.7         39.3              40.7            39.9
Net debt                                                                                  42.3         41.8         43.3              43.4            40.1
Net debt/adj. EBITDA1                                                                      2.2          2.2             2.3            2.3             2.1
Gearing                                                                                   1.0x         1.0x          1.1x             1.1x            1.0x
Equity ratio                                                                            33.7%        34.6%        31.9%             32.7%            32.6%


Comfort zone ratios                                                                                              Current Rating
2 - 2.5x Net debt/adj. EBITDA                                                                                   Fitch:       BBB+ stable outlook       
25 - 35% Equity ratio                                                                                           Moody’s: Baa1 stable outlook           
Gearing: 0.8 to 1.2                                                                                             S&P:         BBB+ stable outlook       
Liquidity reserve covers redemption of the next 24 months                                                       R&I:         A     stable outlook      




1) Ratios for the interim quarters calculated on the basis of previous 4 quarters                                                                            25
T-Mobile US – 2011 results and outlook
Strong EBITDA and prepaid performance, contract negatively
impacted in Q4 by iPhone launch.

                       Service revenues (US$ million)                                                                                  Net adds (‘000)1
                                                                                                               Prepay       Contract

                                                 -4.4%                                                         229          283            231          312            276

            4,615              4,556              4,543              4,525              4,413
                                                                                                                     -251                                      -186
                                                                                                                                                 -281
                                                                                                                                  -382

                                                                                                                                                                             -802

           Q4/10              Q1/11              Q2/11              Q3/11              Q4/11                    Q4/10       Q1/11           Q2/11        Q3/11         Q4/11


   Adj. EBITDA (US$ million) and adj. EBITDA margin                                                                         ARPU development (US$)
                                                                      27.8                27.1                 Blended ARPU (US GAAP)            Data-ARPU (US GAAP)
            25.4                                   25.4
                               23.1
                                                                                                                                             13.6         14.0          14.2
                                                 +3.4%                                                           12.8         13.1

            1,360                                 1,283              1,450              1,406                        46           46         46           46            46
                               1,193




           Q4/10              Q1/11              Q2/11              Q3/11              Q4/11                     Q4/10       Q1/11          Q2/11       Q3/11         Q4/11




1) Walmart Family Mobile customers reclassified as contract customers, Q4/10 and Q1/11 restated accordingly.                                                                        27
Reinvigorating the Challenger strategy.


                                Mission: Making Amazing 4G Services Affordable




            Amazing 4G              Value                                  Multi-Segment         Challenger
                                                      Trusted Brand
             Services              Leader                                      Player          Business Model



2012/      LTE                Brand relaunch       Distribution        B2B Invest          Reinvent v2
2013                                                  push                MVNE platform       Churn v2

2011       America’s          SIM-only Value       Unlimited rate      Walmart             Save4Service/
            Largest 4G          Plans                 plans                partnership          Reinvent v1
            Network            80%+                 Store remodel       MVNOs               Regional
           25 4G devices       smartphone mix        phase 1             Monthly4G            structure
                                in acquisitions                                                Churn v1




                                                                                                                28
$1.4B incremental capex in the network in 2012/2013 to launch
LTE in 2013.
         tal
     total
$4B toment
   B ent
$4 estmt            Modernize 37K sites in 2012/2013                                                                                  Repurposing existing spectrum usage
in v s
inve
                                                                                                                         Average spectrum holdings in Top 100 markets
                                                                    Active Antennas                                      (Mhz)                                   Illustrative
                                                                                                                                                              50% of 4G POPs
                                                                                                                                                        to have 20MHz LTE at launch

                                                                                                                                                                                            60
                                                                                                                                                           54
                                                         72 Mbps                                                                                                                                     AWS LTE
                                                           LTE
                                                                                                                             AWS HSPA+                                                               AWS HSPA+
                 BTS



                                                            Card                                                                                                                                     PCS HSPA+
                                  coax                                                                                           PCS GSM
                                                                                     - Fiber
                                                                                                                                                                                                     PCS GSM

                                                                                                                                                        Today                     After refarm and
                   Multimode radios, tower top electronics                                                                                                                         AT&T spectrum
                        and new integrated antennas


                 +16% in-home coverage starting 2013                                                                          LTE in 20131 – US band alignment (LTE on AWS
                                                                                                                                   1700 MHz, HSPA+ on PCS 1900 MHz)


1) More AWS spectrum needed to launch LTE in 100% of markets with 20MHz and more low-band spectrum needed to be competitive with top two operators. LTE launch in 2013 assumes:
   successful re-farming of spectrum, regulatory approval of AT&T break-up spectrum transfer, no material change in latest data use forecast, and realization of technology enhancements.                        29
Relaunch T-Mobile brand to Best Value in Wireless.


            Strengthen wireless purchase key drivers                                                     Repositioning T-Mobile in Q3 2012
  Key Drivers of Wireless Purchase for Postpaid                                                    Making amazing 4G services affordable
  Customers – Percent                                                                              Driving technology attributes through
                                                                                                    4G services, 4G devices and 4G network
                        T-Mobile             Sprint                 AT&T          Verizon
                                                                                                   Leveraging deep partnerships with
    Coverage                25                    26                8                      57       OS vendors
                                                                                                   Network modernization/LTE as
                                                                                                    quality enabler
 Technology                16                     24                         52       27


 Affordability                  48                   42              16           7


     Service
                          11                  7                         24        9
  Orientation




Source: TMUS Brand Tracker Drivers Analysis March 2011 (n=12,000)                                                                            30
Capture a bigger share of the $60B B2B segment.


                              B2B Segment                                        B2B Key Measures
                                                                 Grow B2B sales force +1000 FTEs
                              $175B = 100%                       Leverage DT footprint for better international offers
                                                                 New B2B rate plans

                                                   B2B/MBB
                                             35%
     12%
     market                                          5%
     share                                           market
                                                     share
                   64%
             B2C                             1%
        (individual                               MVNO
           liable)




Source: Nielsen Survey Data                                                                                               31
T-Mobile USA summary.


   T-Mobile is back with its Challenger strategy
      LTE in 2013
      B2B investments
      Brand relaunch in Q3

   2012 adj. EBITDA expected to be ~$4.8B
   Mid-term target: Return to subscriber and adj. EBITDA growth
   Strategic options considered to strengthen T-Mobile USA’s capital structure.




                                                                                   32
Q&A – Please press “*1” to ask a question.




                                                   René Obermann
                                                   CEO



                                                   Timotheus Höttges
                                                   CFO



                                                   Philipp Humm
                                                   CEO T-Mobile USA

For remaining questions please contact the IR department after the call.


                                                                           33
For further questions please contact the IR department:


 Investor Relations, Bonn office                                  Investor Relations, New York office
 Phone        +49 228 181 - 8 88 80                               Phone        +1 212 424 2959
 Fax          +49 228 181 - 8 88 99                               Phone        +1 877 DT SHARE (toll-free)
 E-Mail       investor.relations@telekom.de                       Fax          +1 212 424 2977
                                                                  E-Mail       investor.relations@telekom.com




Thank you for your attention!
For further information please visit us on our
IR webpage:          IR twitter account:   IR youtube playlist:                           Follow
                                                                                                     us on
                                                                                        DT_I
                                                                                            R

                                                                                                                34

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Deutsche Telekom FY-2011 results presentation

  • 1. Q4/11 – Results Presentation. For smartphone and tablet users: just scan the QR-code and Deutsche Telekom. download this presentation February 23, 2012
  • 2. Disclaimer. This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways. 2
  • 3. Agenda. Deutsche Telekom Results Presentation. René Obermann CEO Timotheus Höttges CFO Philipp Humm CEO T-Mobile USA 3
  • 4. FY 2011 results and outlook.
  • 5. FY 2011: Highlights.  Group revenue of €58.7 billion (-2.5% underlying)1  Targets achieved with €18.7 billion of adj. EBITDA and €6.4 billion of free cash flow Group  Net profit of €0.6 billion impacted by exceptional write-offs  Dividend of €0.70 proposed to AGM  Save for Service target overachieved with €4.5 billion one year ahead of schedule  Adj. EBITDA stabilized over previous year, adj. EBITDA-margin of 39.9%; 1.2 billion of net cost savings Market leadership in mobile service revenue and broadband defended Germany   Growth in VDSL (+78%) and Entertain customer base (+34%); mobile contract net adds +1,048k after -29k in 2010; Line losses declining further (-21%), Broadband customer base growing (+311k)  Markets still suffering from weak economic conditions and regulation Despite weak economy good market performance in broadband (+5%), TV (+12%), IPTV (+24%) and mobile contract Europe  customers (+3%). Smartphone share increased by 20pp to 54% of dispatched devices  Cost cutting of €0.7 billion (excl. T-Mobile UK) results in slightly improved adj. EBITDA margin of 34.6%  Net cost base reduction leads to satisfying adj. EBITDA of US$ 5.3 billion US  Revenue of 20.6 billion US$ (-3.3%) and decline in contract customers  After termination of merger agreement and receipt of the break-up fee re-investment needed in 2012 1) 2010 adjusted for de-consolidation of T-Mobile UK, 2011 adjusted for impact of currency and regulation 5
  • 6. FY 2011 Guidance achieved. FY Guidance and achievement in 2011 (€ billion) Adj. EBITDA FCF ~19.1 18.9 0.2 F/X impact1 14.9 14.9 Min. 6.5 6.5 0.1 F/X impact1 18.7 Dividend of €0.70 per share or € 3 billion in total 6.4 comfortably covered by free cash flow (pay out ratio of 47%) Group ex. US Group incl. US Guidance 2011 Guidance achieved in 12M 1) Mainly US$. Guidance rate was 1.33, FY 2011 actual is 1.39 6
  • 7. 2011 Key financials. € million Q4/10 Q4/11 change in % FY/10 FY/11 change in % Underlying revenue1 15,477 15,129 -2.2% 61,663 60,102 -2.5% Revenue 15,477 14,911 -3.7% 62,421 58,653 -6.0% Adj. EBITDA 4,550 4,611 1.3% 19,473 18,685 -4.0% Adj. net profit 758 -92 n.a. 3,364 2,851 -15.2% Net profit -514 -1,340 n.a. 1,695 557 -67.1% Adj. EPS (in €) 0.18 -0.02 n.a. 0.78 0.66 -15.4% EPS (in €) -0.12 -0.31 n.a. 0.39 0.13 -66.7% Free cash flow2 1,733 1,887 8.9% 6,543 6,421 -1.9% Cash capex3 2,521 2,147 -14.8% 8,532 8,260 -3.2% 1) 2010 adjusted for de-consolidation of T-Mobile UK, 2011 and Q4 2011 adjusted for impact of currency and regulation 3) Adjusted for spectrum investments (€ million 146 in 2011, € million 1,319 in 2010) 2) before dividend payments, break-up fee, PTC settlement and spectrum investments 7
  • 8. FY 2011 Growth Areas. Ambition Deutsche Telekom growth areas1 FY/10 FY/11 Change 2015 Revenue (€ billion) Mobile internet 4.4 5.2 0.8 18% ≈ 10 Connected Home2 6.2 6.3 0.1 1.7% ≈7 thereof GER 5.1 5.3 0.2 2.4% Online consumer services3 0.9 0.9 0.0 -1.8% 2-3 T-Systems external revenue4 6.4 6.5 0.1 1.2% ≈8 incl. Cloud Services Intelligent networks - 0.1 - - ≈1 in Energy, Health, Media Distribution, Connected Car Absolute and percentage change calculated on the basis of millions of € 1) Figures include T-Mobile US 3) Figures adjusted for discontinued cash card business 2) Figures adjusted for new reporting logic Germany 2011 4) Difference to reported segment figure due to “Intelligent networks” which is part of the reported segment figures 8
  • 9. Outlook 2012.  Adj. EBITDA around € 18 billion (based on constant currency) Guidance 20121  Free cash flow around € 6 billion  Execute on challenger strategy in the US, committed to solve long-term strategic challenges  Maintain market leadership and stabilize underlying adj. EBITDA in Germany  Defend cash flows and maintain market-leading position in Europe Operations  Further external revenue growth and margin improvement at Systems Solutions  Continued focus on mobilizing the internet, connected home and convergent offerings  Drive innovation in areas like cloud, payment and content  Further execution on efficiency programs Save 4 Service  Transformation projects like “shape headquarter”, centralization of IT functions in Germany underway  Based upon 2012 guidance €3.4 billion shareholder remuneration and €0.7 minimum dividend per Shareholder share intended. Remuneration2  Execution and timing of share buyback has not yet been decided by the management 1) Based on the assumption of constant currency = average exchange rates of 2011 (1€ = 1.39 US$); no further significant deterioration in the economic and regulatory environment in the markets we operate in; before cash payments connected to break-up fee. 2) Subject to necessary board approval and AGM resolution 9
  • 10. Q4 2011 results operational overview.
  • 11. Q4/11 Overview. Revenue (€ million) Adj. EBITDA (€ million) -3.7% 1.3% 15,477 14,911 4,550 4,611 -81 -485 -28 89 Q4/10 F/X Organic Q4/11 Q4/10 F/X Organic Q4/11 Revenue Q4/10 vs. Q4/11 (€ million) Adj. EBITDA Q4/10 vs. Q4/11 (€ million) 6,442 Germany 2,358 Germany 2,286 6,047 USA 1,000 USA 3,942 1,043 3,848 Europe 1,265 3,913 1,311 Europe 3,772 299 SYS 282 SYS 2,479 Q4/10 Q4/10 2,457 Q4/11 GHS -324 -289 Q4/11 11
  • 12. Germany: further improved EBITDA margin – revenue not satisfying. Revenue (€ million) Adj. EBITDA (€ million) -6.1% -3.1% 6,442 5,991 5,989 6,004 6,047 2,358 2,384 2,439 2,490 2,286 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Adj. opex (€ million) Adj. EBITDA margin (in %) -8.1% 41.5 42 40.7 39.7 40 4,262 3,734 3,664 3,621 3,917 36.6 37.8 38 +1.2pp 36 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 12
  • 13. Germany revenue: continued focus on data & TV opportunity. Fixed network revenues (€ million)1 Mobile service revenue2 (€ million) -7.8% +0.4% 4,376 4,063 4,045 4,027 4,036 1,756 1,747 1,767 1,815 1,763 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 2play + 3play customers (million) Mobile data revenue (€ million) and as % of ARPU double play triple play +31.7% +2.6% 409 410 440 12.2 12.3 384 12.0 12.1 12.2 334 24% 25% 23% 23% 10.8 10.8 10.9 10.8 10.7 19% 1.2 1.3 1.3 1.4 1.6 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1) “Fixed network” revenue includes revenues from Fixed network, Wholesale services, Online consumer services, Value-added services and Fixed network related others 2) Adjusted for the reduction in MTR–rates (Q4 = €35, Q3 = 58, Q2 = 61, Q1 = 57 millions of € revenue) 13
  • 14. Germany: #1 in broadband and mobile service revenue. Broadband access lines (million) and market share1  Line losses 21% below last year: 295k in Q4. (373k in Q4/10) 46.1% 45.8% 45.7% 45.5% 45.3%  Broadband customers +3%: 12,265k, 64k net adds in Q4  Entertain customers +34%: 1,553k total, 177k net adds in Q4 25.9 26.3 26.6 26.8 27.1 2.8 3.1 3.2 3.3 3.6  Retail fiber-customers (VDSL) +78%: 608k total, 88k net adds Market share in Q4 11.2 11.3 11.3 11.3 11.3 Cable  Successful upsell strategy results in stable ARPA (+1.5%) Q4 DSL competitors over Q4. 12.0 12.1 12.2 12.2 12.3 DT  “Landmark deal” with Deutsche Annington signed in Q4 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Mobile service revenue (€ million) and market share2  Ongoing strong growth in mobile data revenues: €440 million (+32% yoy) 35.3% 35.7% 35.2% 34.9% 34.5%  Mobile contract net adds of 387k – strong emphasis on service 4,971 4,739 4,847 5,034 5,006 provider and value segment Market Share 1,757 1,728  Record iPhone sales: 476k in Q4. Full year 1.2 million, despite 1,756 1,690 1,706 Telekom loss of exclusivity only 1% below last year’s level Vodafone 1,685 1,646 1,703 1,701 1,627 E-Plus 781 736 768 805 790 O2 749 686 727 769 787 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1) Company estimates; Rounded figures; Incl. reseller (competitor resale and resale); Q1/11 adjusted mainly due to changes in KDG reporting structure 2) Company estimates, incl. revenues from stationary wireless solutions (Call and Surf via Funk) since October 1, 2011 14
  • 15. Germany: network roll-out and successful positioning. Mobile network population coverage and fiber link-up Successfully re-vitalized Service Provider segment Net Adds contract in k. 99% 99% 83% 86% 73% 83% DT Service Provider 1.048 268 14% 780 1% 327 -357 2G coverage 3G coverage LTE coverage % of 3G sites -30 with fiber link Q4/10 Q4/11 2010 2011 Broadband rollout (as % of access lines) Major network awards won 82% 49% 53% 54% 30% 34% VDSL coverage DSL 16,000+ Entertain coverage (FTTC) coverage (incl. SAT)1) 1) DSL-access of at least 3 Mbit/s required 15
  • 16. Europe – growth in key market KPIs. TV customer (million) Smartphone share1 +12% +59% 2.59 2.62 2.64 50% 54% 2.35 2.41 46% 43% 0.71 0.73 0.77 0.81 34% 0.65 IPTV +24% IPTV +24% Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Broadband accesses (million)2 Mobile contract subscriber (million)2 +5% +3% 4.58 4.71 4.75 4.75 4.81 26.3 26.5 26.6 26.8 27.1 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1) Percentage of smartphones in dispatched devices (excl. OTE, Slovakia, Macedonia and Montenegro); 2) incl. business customers shifted to T-Systems in Hungary as of 1.1.2011. 16
  • 17. Europe – integrated markets: focus on robust margins in difficult environment. Greece: Revenue (€ million) -7%  Q4 with strongest adj. EBITDA performance in year 2011, margin -10% increased yoy by 1.2pp -5% 0% 937 867  Strong position in declining mobile market 407 368  Sale of 20% stake in Telekom Serbia for €380 million will support 278 263 232 231 refinancing of OTE Greece Croatia Slovakia Croatia: Hungary1  Revenue driven by F/X and regulation.  Adj. EBITDA growth due to strong performance in mobile (+47%yoy) Adj. EBITDA (€ million)  Underlying mobile service revenue (excl. regulation and F/X) with 4% -4% growth +16% -16% +11% Hungary: 335 321 152 128  Underlying revenue (excl. tax, regulation and F/X) -0.2% 113 131 82 91  Hungarian broadband (+5%), IPTV (+81%) and mobile contract (+6%) Greece Croatia Slovakia customer base with continued growth2 Hungary1 Slovakia: Adj. EBITDA margin in %  Revenue driven by ICT acquisition in fixed 49.8  Adj. EBITDA and margin improvement result of cost-cutting initiative 35.8 37.0 40.6 37.3 34.8 35.3 39.4 (FTEs -16%yoy)  IPTV (+14%) and satellite (+55%) customers base with solid growth Greece Croatia Hungary1 Slovakia Q4/10 Q4/11 1) Figures adjusted for special tax in Q4/10 and Q4/11 - impact: €90 million and €18 million (both on revenue and adj. EBITDA). Q4/10 figures adjusted for shift of business customers to T-Systems. 2) Incl. business customers shifted to T-Systems in Hungary as of 1.1.2011. 17
  • 18. Europe – mobile centric: economy and regulation impact revenue. Poland: Revenue (€ million)  Q4/11 revenue significantly impacted by F/X losses (-€47 million) -14% +9% Underlying revenue (excl. MTR cut and F/X) -2.1% -7% -2%  Underlying EBITDA (excl. MTR cut and F/X) -8% due to higher release of 475 409 427 465 accruals in Q4/10 291 270 238 234 Netherlands: Poland Netherlands Austria  Change in tariff structure leads to catch-up of previously unrecognized Czech Rep. revenue (€47 million). Underlying revenue (ex. MTR cut and catch-up) of +3.7% Adj. EBITDA (€ million)  Underlying EBITDA (excl. MTR cut and catch-up) +11.5% -18% +43% -12%  Ongoing focus on contract customer growth (+11%) -20% Czech Republic: 187 153 122 174 134 118 70  Underlying revenue (excl. MTR cut and F/X) -0.3% 56  Smartphone share in dispatched devices doubled to 52% resulting in an underlying (excl. MTR cut and F/X) EBITDA of -6.7% Poland Netherlands Czech Rep. Austria Austria: Adj. EBITDA margin in %  Q4/11 adj. EBITDA driven by market invest cycles 46.0 43.7  Continuous contract customer growth (+6%) 39.4 37.4 37.4  Subscriber base grows to over 4 million customers 28.6 29.4 23.9 Poland Netherlands Czech Rep. Austria Q4/10 Q4/11 18
  • 19. Systems Solutions: revenue growth of 2.1% in FY 2011. Revenue (€ million)  Full year revenue growth (+2.1%) in 2011 due to successful closed deals in 2010 and 2011 and increasing External Revenues Internal Revenues revenues with cloud computing  Revenue decrease of 0.9%yoy to €2,457million in Q4/11 -0.9% driven by lower internal revenues (-4.4%yoy) 2,479 2,260 2,276 2,256 2,457  External revenues up 0.7% to €1,726 million in Q4/11 and 1,714 1,726 2.4% to €6,567million in FY/11 1,616 1,638 1,587  Deal Highlights in 2011: 765 644 638 669 731 Everything Everywhere, Valora, TOTAL, Magna, Daimler, Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Correo España, Neopost Adj. EBITDA (€ mn)/margin Adj. EBIT (€ mn)/margin  Adj. EBITDA at €282 million with a margin of 11.5%  Adj. EBIT margin in Q4/11 slightly down to 5.0% from 5.5% in Q4/10 12.1% 11.5% 5.5% 5.0%  Both EBITDA and EBIT improved throughout the year  Capex was strongly and sustainably reduced in 2011 in order 8.4% 8.7% 9.0% to protect cash flow 299 282 137 2.0% 2.4% 124  Successful S4S cost savings of €709 million in FY/11 189 197 204 1.3% 45 54 29 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 19
  • 20. Q4 2011 results financial overview.
  • 21. Free cash flow – delivered on target. Free cash flow Q4/11 vs. Q4/10 (€ million) Free cash flow FY/11 vs. FY/10 (€ million) 1,887 6,543 6,421 37 406 12 1,733 272 374 257 FCF Q4/10 Net cash from Capex1 Others FCF Q4/11 FCF FY/10 Net cash from Capex1 Others FCF FY/11 operations operations 1) Adj. for €83 million of spectrum invest in Q4/11 and €146 million in FY/11.FY/10 adjusted for € 1,319 million of spectrum investment 21
  • 22. Save for Service: €4.2 billion target overachieved one year ahead of schedule. Cost base development FY/10 vs. FY/11 (€ billion) Contribution FY/2011 by Business Unit (€ million) Realized -6.8% 44.41 Germany 450 0.60 USA 458 0.54 Europe 405 Systems Solutions 709 2.10 GHS 74 41.39 0.21 DT Group 2.095  Incremental savings realized in Q4 amount to € 0.6bn. Total run rate of savings at €4.5 billion. 2010-2012 target of €4.2 already overachieved end of 2011.  FY 2011 adj. net cost base reduction in Germany €1.2 billion, Europe €0.7 billion (excl. €0.6 billion from UK deconsolidation) €1.0 billion in the US (incl. F/X). FY Changes in FX S4S Net FY 2010 scope of FY Re-Invest 2011 consolidation 2011 FY 2011 22
  • 23. Net income development FY 2011: Special factors. Net income FY 2011 (in € million) US$ 3 billion cash US$ 1.2 billion spectrum 2,851 2,297 3,000 1,683 1,040 46 557 641 321 Adjusted Restructuring Breakup Impairment US Impairment Special factors Tax effect on Special factors Net profit net profit expenses fee effect Europe in financial special factors attributable to and others result minorities 23
  • 24. Net debt reduced by over € 2 billion (-5.1%) in FY 2011. Net debt FY 2011 (in € billion) 42.3 0.8 0.4 0.1 0.3 2.3 40.1 6.4 1.4 3.5 Net debt 2010 Others Free cash flow Dividends PTC OTE put Spectrum Pension Breakup fee Net debt 2011 (incl. f/x) settlement option invest funding 24
  • 25. Balance sheet ratios: improved net debt over EBITDA ratio and gearing in Q4. in € billion 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 Balance sheet total 127.8 123.2 123.1 124.6 122.5 Shareholders’ equity 43.0 42.7 39.3 40.7 39.9 Net debt 42.3 41.8 43.3 43.4 40.1 Net debt/adj. EBITDA1 2.2 2.2 2.3 2.3 2.1 Gearing 1.0x 1.0x 1.1x 1.1x 1.0x Equity ratio 33.7% 34.6% 31.9% 32.7% 32.6% Comfort zone ratios Current Rating 2 - 2.5x Net debt/adj. EBITDA  Fitch: BBB+ stable outlook  25 - 35% Equity ratio  Moody’s: Baa1 stable outlook  Gearing: 0.8 to 1.2  S&P: BBB+ stable outlook  Liquidity reserve covers redemption of the next 24 months  R&I: A stable outlook  1) Ratios for the interim quarters calculated on the basis of previous 4 quarters 25
  • 26. T-Mobile US – 2011 results and outlook
  • 27. Strong EBITDA and prepaid performance, contract negatively impacted in Q4 by iPhone launch. Service revenues (US$ million) Net adds (‘000)1 Prepay Contract -4.4% 229 283 231 312 276 4,615 4,556 4,543 4,525 4,413 -251 -186 -281 -382 -802 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Adj. EBITDA (US$ million) and adj. EBITDA margin ARPU development (US$) 27.8 27.1 Blended ARPU (US GAAP) Data-ARPU (US GAAP) 25.4 25.4 23.1 13.6 14.0 14.2 +3.4% 12.8 13.1 1,360 1,283 1,450 1,406 46 46 46 46 46 1,193 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1) Walmart Family Mobile customers reclassified as contract customers, Q4/10 and Q1/11 restated accordingly. 27
  • 28. Reinvigorating the Challenger strategy. Mission: Making Amazing 4G Services Affordable Amazing 4G Value Multi-Segment Challenger Trusted Brand Services Leader Player Business Model 2012/  LTE  Brand relaunch  Distribution  B2B Invest  Reinvent v2 2013 push  MVNE platform  Churn v2 2011  America’s  SIM-only Value  Unlimited rate  Walmart  Save4Service/ Largest 4G Plans plans partnership Reinvent v1 Network  80%+  Store remodel  MVNOs  Regional  25 4G devices smartphone mix phase 1  Monthly4G structure in acquisitions  Churn v1 28
  • 29. $1.4B incremental capex in the network in 2012/2013 to launch LTE in 2013. tal total $4B toment B ent $4 estmt Modernize 37K sites in 2012/2013 Repurposing existing spectrum usage in v s inve Average spectrum holdings in Top 100 markets Active Antennas (Mhz) Illustrative 50% of 4G POPs to have 20MHz LTE at launch 60 54 72 Mbps AWS LTE LTE AWS HSPA+ AWS HSPA+ BTS Card PCS HSPA+ coax PCS GSM - Fiber PCS GSM Today After refarm and Multimode radios, tower top electronics AT&T spectrum and new integrated antennas +16% in-home coverage starting 2013 LTE in 20131 – US band alignment (LTE on AWS 1700 MHz, HSPA+ on PCS 1900 MHz) 1) More AWS spectrum needed to launch LTE in 100% of markets with 20MHz and more low-band spectrum needed to be competitive with top two operators. LTE launch in 2013 assumes: successful re-farming of spectrum, regulatory approval of AT&T break-up spectrum transfer, no material change in latest data use forecast, and realization of technology enhancements. 29
  • 30. Relaunch T-Mobile brand to Best Value in Wireless. Strengthen wireless purchase key drivers Repositioning T-Mobile in Q3 2012 Key Drivers of Wireless Purchase for Postpaid  Making amazing 4G services affordable Customers – Percent  Driving technology attributes through 4G services, 4G devices and 4G network T-Mobile Sprint AT&T Verizon  Leveraging deep partnerships with Coverage 25 26 8 57 OS vendors  Network modernization/LTE as quality enabler Technology 16 24 52 27 Affordability 48 42 16 7 Service 11 7 24 9 Orientation Source: TMUS Brand Tracker Drivers Analysis March 2011 (n=12,000) 30
  • 31. Capture a bigger share of the $60B B2B segment. B2B Segment B2B Key Measures  Grow B2B sales force +1000 FTEs $175B = 100%  Leverage DT footprint for better international offers  New B2B rate plans B2B/MBB 35% 12% market 5% share market share 64% B2C 1% (individual MVNO liable) Source: Nielsen Survey Data 31
  • 32. T-Mobile USA summary.  T-Mobile is back with its Challenger strategy  LTE in 2013  B2B investments  Brand relaunch in Q3  2012 adj. EBITDA expected to be ~$4.8B  Mid-term target: Return to subscriber and adj. EBITDA growth  Strategic options considered to strengthen T-Mobile USA’s capital structure. 32
  • 33. Q&A – Please press “*1” to ask a question. René Obermann CEO Timotheus Höttges CFO Philipp Humm CEO T-Mobile USA For remaining questions please contact the IR department after the call. 33
  • 34. For further questions please contact the IR department: Investor Relations, Bonn office Investor Relations, New York office Phone +49 228 181 - 8 88 80 Phone +1 212 424 2959 Fax +49 228 181 - 8 88 99 Phone +1 877 DT SHARE (toll-free) E-Mail investor.relations@telekom.de Fax +1 212 424 2977 E-Mail investor.relations@telekom.com Thank you for your attention! For further information please visit us on our IR webpage: IR twitter account: IR youtube playlist: Follow us on DT_I R 34