Deutsche Telekom AG
Total Page：16
File Type：pdf, Size：1020Kb
As filed with the Securities and Exchange Commission on March 1, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 20-F È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2006 Commission file number 001-14540 Deutsche Telekom AG (Exact Name of Registrant as Specified in its Charter) Federal Republic of Germany (Jurisdiction of Incorporation or Organization) Friedrich-Ebert-Allee 140, 53113 Bonn, Germany (Address of Registrant’s Principal Executive Offices) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered American Depositary Shares, each representing New York Stock Exchange one Ordinary Share Ordinary Shares, no par value New York Stock Exchange* Securities registered or to be registered pursuant to Section 12(g) of the Act: NONE (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: NONE (Title of Class) Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: Ordinary Shares, no par value: 4,361,119,250 (as of December 31, 2006) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘ If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ‘ No È Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes È No ‘ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. Large accelerated filer È Accelerated filer ‘ Non-accelerated filer ‘ Indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ‘ Item 18 È If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ‘ No È *Not for trading, but only in connection with the registration of American Depositary Shares. WorldReginfo - c550886a-50bd-4aef-8806-d8343b1ded0e WorldReginfo - c550886a-50bd-4aef-8806-d8343b1ded0e TABLE OF CONTENTS Page PART I Item 1. Identity of Directors, Senior Management and Advisors ............................... 4 Item 2. Offer Statistics and Expected Timetable ........................................... 4 Item 3. Key Information .............................................................. 4 Selected Financial Data ...................................................... 4 Risk Factors ............................................................... 7 Item 4. Information on the Company .................................................... 15 Introduction ............................................................... 15 Historical Background ....................................................... 15 Organizational Structure ..................................................... 16 Segment Revenue Breakdown ................................................. 17 Description of Business ...................................................... 18 Mobile Communications ................................................... 18 Broadband/Fixed Network .................................................. 29 Business Customers ....................................................... 44 Group Headquarters and Shared Services ...................................... 53 Innovation Management (Research and Development) .............................. 56 Acquisitions and Divestitures .................................................. 58 Regulation ................................................................. 59 Description of Property, Plant and Equipment ..................................... 76 Item 4A. Unresolved Staff Comments .................................................... 77 Item 5. Operating and Financial Review and Prospects ...................................... 78 Management Overview ...................................................... 78 Critical Accounting Estimates ................................................. 87 Consolidated Results of Operations ............................................. 90 Segment Analysis ........................................................... 97 Mobile Communications ................................................... 98 Broadband/Fixed Network ................................................. 112 Business Customers ....................................................... 124 Group Headquarters and Shared Services ...................................... 129 Liquidity and Capital Resources ............................................... 131 Reconciling Differences between IFRS and U.S. GAAP ............................. 141 Recently Issued IASB Pronouncements .......................................... 145 New U.S. GAAP Accounting Pronouncements .................................... 147 Item 6. Directors, Senior Management and Employees ...................................... 149 General ................................................................... 149 Supervisory Board .......................................................... 150 Management Board ......................................................... 156 Compensation .............................................................. 158 Share Ownership ........................................................... 168 Employees and Labor Relations ................................................ 170 Item 7. Major Shareholders and Related Party Transactions .................................. 175 Major Shareholders ......................................................... 175 Related Party Transactions .................................................... 176 Item 8. Financial Information .......................................................... 179 Consolidated Financial Statements ............................................. 179 Export Sales ............................................................... 179 Legal Proceedings .......................................................... 179 i WorldReginfo - c550886a-50bd-4aef-8806-d8343b1ded0e Page Dividend Policy ............................................................ 190 Significant Changes ......................................................... 190 Item 9. The Offer and Listing .......................................................... 191 Trading Markets ............................................................ 191 Item 10. Additional Information ......................................................... 194 Articles of Incorporation ..................................................... 194 Significant Differences in Corporate Governance Practices .......................... 200 Other Matters .............................................................. 203 Exchange Controls .......................................................... 204 Taxation .................................................................. 204 German Taxation ......................................................... 205 U.S. Taxation and U.S.-German Double Taxation Agreement of August 29, 1989 ...... 206 Documents on Display ....................................................... 209 Item 11. Quantitative and Qualitative Disclosures about Market Risk ........................... 210 Risk Identification and Analysis ............................................... 210 Foreign Exchange Rate Risk .................................................. 210 Interest Rate Risk ........................................................... 211 Changes in Market Risk Exposure in 2006 Compared to 2005 ........................ 212 Item 12. Description of Securities Other than Equity Securities ................................ 212 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies ................................... 213 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds ............. 213 Item 15. Controls and Procedures ........................................................ 213 Item 16A. Audit Committee Financial Expert ................................................ 215 Item 16B. Code of Ethics ............................................................... 215 Item 16C. Principal Accountant Fees and Services ........................................... 216 Item 16D. Exemptions from the Listing Standards for Audit Committees .......................... 217 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers ................... 218 PART III Item 17. Financial Statements ........................................................... 219 Item 18. Financial Statements ........................................................... 219 Report of Independent Registered Public Accounting Firms as of December 31, 2006 and 2005 and for the three years ended December 31, 2006 ............................. F-2 Consolidated Income Statement for the three years ended December 31, 2006