CORPORATES

CREDIT OPINION Deutsche Telekom AG 21 June 2021 Update following outlook change to stable

Update Summary Deutsche Telekom AG's (Deutsche Telekom) Baa1 rating primarily reflects the company's large size and scale; its geographical diversification in Germany, the US, and Central and Eastern Europe; its strong market positions across its geographical footprint, despite the potential for increased competition; its high capital spending requirements, given the low fibre coverage in RATINGS Germany; and the marginal impact of the coronavirus pandemic on the company's operating Deutsche Telekom AG performance. Domicile Bonn, Germany Long Term Rating Baa1 Deutsche Telekom’s rating also factors in management’s financial policy that includes a Type Senior Unsecured - Fgn leverage comfort zone of net debt/EBITDA (as reported by the company) between 2.25x and Curr 2.75x (equivalent to Moody’s-adjusted net leverage of around 3.0x); its continued commitment Outlook Stable towards the net leverage corridor and deleveraging after the consolidation of T-Mobile USA, Please see the ratings section at the end of this report Inc. (T-Mobile USA, Ba2 stable); the strong evolution of the company's US subsidiary, the for more information. The ratings and outlook shown group's key growth engine; and its excellent liquidity management, with a minimum two-year reflect information as of the publication date. pre-funding policy.

Given Deutsche Telekom's status as a government-related issuer (GRI), the Baa1 rating benefits Contacts from a one-notch uplift stemming from our expectation of support from the Government of Carlos Winzer +34.91.768.8238 Germany (Aaa stable). Senior Vice President [email protected] Exhibit 1 We expect Deutsche Telekom's RCF / Net debt to stay above 20% in 2021-22 Pilar Anduiza +34.91.768.8220 Evolution of Deutsche Telekom's adjusted RCF / Net debt Associate Analyst RCF/Net debt Downward pressure Upward pressure [email protected] 31.0% Ivan Palacios +34.91.768.8229 29.0% Associate Managing Director 27.0% [email protected] 25.0% 23.0%

21.0%

19.0%

17.0%

15.0% 2016 2017 2018 2019 2020 2021e 2022e Source: Moody’s Financial Metrics™ and Moody's Investors Service estimates MOODY'S INVESTORS SERVICE CORPORATES

Credit strengths » Large size and scale, and broad geographical diversification

» A strong market position in Germany, which is a very competitive market

» Excellent liquidity management, with a minimum two-year pre-funding policy

» A convergent strategy in a number of European countries

» Strong performance of T-Mobile USA

Credit challenges » Net leverage will likely remain above the guidance for the current rating for at least two years.

» The merger between T-Mobile USA and Sprint entails execution risks and an increasing exposure to a high-yield asset.

» Capital spending requirements to address the increasing demand for faster speeds in fixed-line and mobile networks remain high.

» The pandemic has hurt the company's operating performance, although to a more limited extent than the companies in other sectors.

» The operating environment for T-Systems remains difficult and has been the most severely hurt by the coronavirus pandemic.

Rating outlook The stable rating outlook reflects our view that Deutsche Telekom's rating is well positioned in the Baa1 rating category because we expect gradual deleveraging towards management’s comfort zone leverage of 2.25x-2.75x by 2024 (equivalent to Moody’s-adjusted leverage below 3x), combined with improving underlying operating performance at the group level. Factors that could lead to an upgrade We would consider upgrading Deutsche Telekom's rating to A3 if the group strengthens its credit metrics on a sustained basis, such that:

» its retained cash flow/adjusted net debt exceeds 25% and adjusted total net debt/EBITDA remains below 2.5x, both on a sustained basis, with an improvement in the business profile and operating conditions

Factors that could lead to a downgrade A rating downgrade could result if the company were to experience a deterioration in its operating performance, or embark on an aggressive expansion or acquisition programme, leading to higher financial, business and execution risks, such that its:

» adjusted net debt/EBITDA were to exceed 3.0x, with no expectation of an improvement over a 24-month period

» adjusted retained cash flow/net debt were to decline to 18% or less on a sustained basis

The rating could also be downgraded if there is:

» a reduction in the government's equity stake to less than 20%, because then we may no longer apply the Government-Related Issuers rating methodology to Deutsche Telekom.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

2 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Key indicators

Exhibit 2 Deutsche Telekom AG [1][2][3]

Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 2021e 2022e EUR Millions Revenue 69,228 73,095 74,947 75,656 80,531 100,999 105,423 106,164 Debt / EBITDA 4.0x 3.5x 3.0x 3.3x 3.4x 3.9x 4.1x 3.9x Net Debt / EBITDA 3.6x 3.2x 2.9x 3.2x 3.2x 3.5x 3.8x 3.6x RCF / Debt 20.2% 22.8% 27.3% 26.3% 22.9% 18.9% 18.9% 19.8% RCF / Net Debt 22.8% 25.1% 28.5% 27.5% 24.3% 20.8% 20.6% 21.6% (EBITDA-CAPEX) / Interest Expense 2.2x 2.7x 3.0x 3.1x 3.3x 3.0x 2.9x 3.1x

[1] All figures and ratios are calculated using Moody's estimates and standard adjustments. [2] Periods are financial year-end unless indicated. LTM = Last 12 months. [3] Moody's Forecasts (f) or Projections (proj.) are Moody's opinion and do not represent the views of the issuer. Source: Moody's Investors Service

Profile Deutsche Telekom AG (Deutsche Telekom), domiciled in Bonn, Germany, is a leading provider of wireline and wireless services in the country. The key countries for the group are Germany (22.8% of net revenue in 2020) and the US (60.6%), where it operates in the mobile segment through T-Mobile USA. Deutsche Telekom also retains strong market positions in both the fixed and mobile segments in Greece, through OTE, and in a number of Central and Eastern European countries.

In 2020, the company generated €101 billion in revenue and €40.4 billion in EBITDA (adjusted for special factors). Deutsche Telekom is 31.9% owned by the German government (14.5% directly and 17.4% through Germany's state-owned development bank Kreditanstalt für Wiederaufbau [KFW, Aaa stable]).

Exhibit 3 T-Mobile USA's weight in the group is substantial (61% of net revenue and 62% of EBITDA) Net revenue and EBITDA by business unit as of 2020 [1][2][3]

Net Revenue EBITDA 70.0% 60.6% 62.2% 60.0%

50.0%

40.0%

30.0% 22.8% 23.0%

20.0% 11.0% 10.7% 10.0% 3.2% 3.2% 0.9% 2.4% 0.0% Germany United States Europe Systems Solutions Others

[1] Others include group development, group headquarters and group services units. [2] Reported EBITDA adjusted for special factors. [3] Reconciliation excluded from EBITDA calculations. Source: Company

3 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Recent developments On 15 June 2021, we changed Deutsche Telekom's outlook to stable from negative. The change in outlook to stable from negative reflects our expectation of progressive improvement in DT’s operating performance in its core markets of Germany and the US, combined with management’s commitment to progressively reduce leverage to around 3.0x by 2024 from 3.8x in 2021.

The stable outlook factors in the solid operating performance, our expectation of improved cash flow generation and significant value creation of T-Mobile USA, which DT consolidates and controls with a 43% equity stake, but with an option to increase it to above 50%. We factor into the assessment of DT its exposure to a Ba2-rated asset in the US, despite the publicly stated limited recourse and self-funding strategy of TMUS. Detailed credit considerations T-Mobile USA's performance and synergy execution ahead of expectations but leverage will remain high over the next two years The merger between T-Mobile USA and Sprint closed on 1 April 2020. Following the completion of the transaction, Deutsche Telekom holds around 43% of the shares in T-Mobile USA. However, under a proxy agreement reached with SoftBank Group Corp. (Softbank, Ba3 stable), Deutsche Telekom controls majority of voting rights in the new T-Mobile USA. In June 2020, Softbank sold 198 million shares in the company in the open market and gave Deutsche Telekom the option to purchase another 101 million shares (around 8% of the company's share capital) until June 2024.

While DT’s leverage, on a Moody’s-adjusted net debt/EBITDA basis, is expected to reach 3.8x this year, exceeding the 3.0x threshold for the Baa1 rating category, the rating affirmation with a stable outlook factors in our expectation that the company will continue to progressively reduce leverage towards 3.0x by 2024, in line with management’s comfort zone.

Exhibit 4 We expect Deutsche Telekom's net leverage to stay at around 3.8x-3.6x in 2021-22 Evolution of Deutsche Telekom's adjusted Net Debt / EBITDA

Downward pressure Upward pressure Net debt/EBITDA 4.0x

3.5x

3.0x

2.5x

2.0x

1.5x 2016 2017 2018 2019 2020 2021e 2022e Source: Moody’s Financial Metrics™ and Moody's Investors Service estimates

We also acknowledge the sound strategic logic behind the merger and the expected synergy benefits, as well as the associated execution risks and the increasing exposure to a Ba2-rated asset.

The US segment has performed strongly and ahead of expectations in 2020, delivering €1.3 billion in synergies. The company has also raised the expectation of total run-rate synergies to around $7.5 billion per year, up 25% from the original forecast of $6 billion.

However, despite the company's strong execution, leverage will remain high over the next 12-18 months mainly as a result of the payment of $9.3 billion for mid-band spectrum won in the FCC's recently completed C-band auction. Leverage will also remain high because of the lease extension with American Tower Corporation (Baa3 stable), which has increased the group's IFRS 16 liability by €9 billion, pushing net leverage up by around 0.2x.

Nevertheless, although Deutsche Telekom will control and consolidate T-Mobile USA, it will not provide parental support. T-Mobile USA will be financially independent and self-funded.

4 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Deutsche Telekom's rating is supported by its large size, broad geographical diversification and European convergent strategy Deutsche Telekom benefits from its large scale and geographical diversification because of its strong market positions in a number of countries. The key markets for the group are Germany and the US, where it operates in the mobile segment through T-Mobile USA.

Deutsche Telekom also has strong market positions in Greece (through OTE), Austria, Croatia, Hungary, Macedonia, Slovakia, Montenegro, the Czech Republic, the Netherlands and Poland, where the company operates in both the fixed and mobile segments.

On 6 November 2020, the company agreed to sell a 54% stake in its Romanian operations to Orange Romania. Additionally, on 21 January 2021, Deutsche Telekom agreed to merge its tower business in the Netherlands with Cellnex Telecom S.A.'s towers in the country. The merger closed at the beginning of June this year and the merged entity will have around 4,310 sites, including planned new-build of 180 sites, and will become the largest independent mobile tower company in the Netherlands. We do not expect Deutsche Telekom to undertake any other major M&A activity in Europe in 2021.

The European segment showed resilient underlying trends despite the impact from the pandemic. Organic revenue was flat during 2020, while organic EBITDA growth was up 2.1% year over year.

Deutsche Telekom's international diversification has historically been a key credit positive because it has enabled the company to offset operating pressure in a number of European markets stemming from regulation, such as roaming, and a highly competitive environment. Operational pressure has been more than offset by the company's continued exceptional performance in the US.

In addition, we expect the focus of the US unit to shift gradually from top-line growth to higher profitability or higher free cash flow (FCF) generation. Despite T-Mobile USA's strong contribution to revenue and EBITDA at the group level, its impact on FCF generation has been limited historically.

Positive performance in the domestic fixed segment offsets weaker mobile trends In Germany, Deutsche Telekom reported a 0.2% year-over-year increase in revenue in 2020, mainly because of the contribution from the fixed unit. Service revenue grew by 0.7% (see Exhibit 4). In Q1 2021, the company continued to exhibit service revenue growth of 1.7%.

As Exhibit 4 shows, fixed service revenue continued to grow since Q3 2019, allowing the company to offset the decline in mobile since Q2 2020. Growth in the fixed segment has been mainly driven by lower line losses and higher broadband net adds.

Exhibit 5 Domestic fixed-service revenue improved, while mobile service revenue growth slowed, partly driven by regulation Germany: Evolution of Deutsche Telekom's service revenue [1]

Mobile Fixed Total 4%

3%

2%

1%

0%

-1%

-2% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 2021

[1] Including the IFRS 15 impact from Q1 2019. Source: Company

However, the overall market is currently experiencing a substantial slowdown mainly because of aggressive promotion offers from competition.

5 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

The consumer All-IP migration was finalised in 2020. Wholesale revenue is another area of focus for the company. Wholesale revenue increased by 1.3% in 2020 mainly as a result of the migration of customers to fibre-optic-based lines as well as some positive one-off effects on voice revenue because of the pandemic.

The mobile segment has been the worst hit by the pandemic, having recorded a negative growth rate of 1.1% in 2020. The negative growth was mainly driven by lower equipment sales and lower roaming revenue, as a result of the pandemic and, to a lesser extent, the negative impact from MTR (mobile termination rates) cuts. In Q1 2021, mobile service revenue declined by 0.8% mainly as a result of the pandemic, which had an impact of two percentage points. However, DT was able to deliver positive mobile service revenue growth until Q1 2020 (see Exhibit 5), helped by its superior network performance and strong market segmentation.

Exhibit 6 The mobile market was hurt by the pandemic in 2020

Telefonica Vodafone Deutsche Telekom Market 4.0%

2.8% 3.0% 2.4% 2.3%

2.0% 1.6% 1.2% 1.3%1.2% 0.9% 0.8% 1.0% 0.6% 0.6% 0.4% 0.5% 0.1% 0.0% 0.0% 0.0% -0.1% -0.3% -1.0% -0.5% -0.5%-0.5% -0.6% -0.7% -0.9% -0.9% -0.8% -2.0% -1.6% -1.7% -2.0% -2.2% -3.0% -2.4% -2.5% -2.7%

-4.0% -3.3% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21

[1] Including the IFRS 15 impact from Q1 2019. [2] “Market” represents the sum of mobile network operators. Source: Company

The company expects to grow its German service revenue by around 1% over 2020-24, which, along with expected cost savings of €0.7 million, will drive EBITDAaL growth of 2.5%-3% over the same period.

Additionally, we expect the group's operating performance in Europe to continue to improve over the next two years, in line with the company's announced ambition to grow its European segment's service revenue and EBITDAaL by a CAGR of more than 1% and 1.5%-2.5%, respectively, by 2024. However, we believe that the pandemic will likely continue to limit its revenue growth in 2021. Management remains focused on cost cutting to mitigate the negative effect of lower revenue from roaming.

At the group level, over the next two years, we expect continued improvement in both top line and EBITDA because of ongoing cost control, increased productivity and technology enhancements, along with growth in the broadband and TV segments and a recovery in mobile service revenue. DT's ambition is to grow revenue by a CAGR of 1%-2% over 2020-24. The company also expects EBITDAaL growth of 3%-5% (2%-3% excluding the US) over the same period mainly driven by top-line growth, synergy execution in the US as well as total cost savings of €1.2 billion.

Deutsche Telekom's position is strong despite sustained competition in the German market Deutsche Telekom remains the largest telecommunications service provider in Germany, a market subject to strong competition. The company's main advantages are its brand, network quality, and ability to bundle IP television, mobile and broadband through its MagentaEINS offering.

Despite Deutsche Telekom's 40% market share in broadband (Moody's-calculated) in 2020, competition from cable operators remains strong because their offers have historically been competitive alternatives from the pricing and speed perspectives, compared with those of Deutsche Telekom. Although Deutsche Telekom has lost market share to cable operators in the past, the accelerated fibre footprint expansion will help the company reduce the gap with cable operators' offerings and gain commercial traction.

6 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

The merger between Vodafone Group Plc (Baa2 Negative) and Unitymedia GmbH (Unity) has created a stronger company capable of competing with Deutsche Telekom on a nationwide basis, potentially delivering gigabit speeds to 25 million German homes by 2022. As a result, Deutsche Telekom continues to face intense pricing and competitive pressure in its domestic market.

At the same time, as part of the remedies, Telefonica S.A. (Baa3 stable) now has access to the merged entity's cable network in Germany, enabling it to compete more effectively in the delivery of convergent services in the German market.

In the mobile segment, Deutsche Telekom has a strong position, with an estimated 33% subscriber market share in 2020. The company mainly competes with Vodafone and Telefonica Deutschland, but the main source of competitive risk is Vodafone because of its convergent offerings as against Telefonica Deutschland's predominantly mobile-only offerings.

Exhibit 7 Deutsche Telekom retains an estimated 40% and 33% of fixed broadband and mobile market shares, respectively Germany: Estimated fixed broadband and mobile subscriber market shares

Broadband Mobile 45% 40% 40%

35% 33% 32% 30% 30%

25% 21% 20%

15% 13% 9% 9% 10% 7% 7% 5%

0% Deutsche Telekom Vodafone Telefonica Deutschland 1&1 - Drillisch Others Sources: Company, Bundesnetzagentur and Moody's Investors Service estimates

Drillisch, an existing mobile virtual network operator with about 10.5 million mobile customers and 4.3 million broadband lines, acquired spectrum in the 5G spectrum auction in June 2019 becoming the fourth mobile operator in Germany. We do not expect the company to become an aggressive market disrupter in Germany, given that the potential network rollout by Drillisch is likely to be focused on big cities (because it would be more economical) rather than on rural and medium-dense areas, which means the company will offer less independent network coverage than its competitors. A national network rollout by Drillisch would also likely require years to build as well as additional spectrum, which will not be made available until 2023-24.

In terms of content, Deutche Telekom reached nine million Magenta TV customers in 2020 in Germany and Europe thanks to the company's investments in both technology and exclusive content, as illustrated by the purchase of the Euro 2024 football championship rights for Germany.

Continued high capital spending requirements to address increasing demand for faster speeds in fixed-line and mobile networks Deutsche Telekom is implementing a large capital spending programme to modernise its network to deploy next-generation network technology in Europe and the US. The company's investments in Germany are mainly focused on fibre, as well as vectoring and super- vectoring-enabled VDSL lines.

So far, the rollout of Deutsche Telekom's fibre1 strategy has allowed the company to cover more than 80% of German households with FTTC.

The company has also started to roll out fibre-to-the-home (FTTH) and has announced a new target to cover 10 million homes with FTTH by 2024 and 60% FTTH coverage by 2030 from 5% currently. The fibre rollout will also be implemented with co-building, such as its joint venture with EWE AG (Baa1 stable), with a target to reach six million households by 2021. In the FTTH rollout, priority will be given to areas where there is a strong win-back potential for Deutsche Telekom.

7 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

After the conclusion of the 5G spectrum auction, capital spending resources will continue to be used for the rollout of 5G infrastructure to meet the stringent coverage obligations embedded in the auction process. The visibility into the national roaming contract and the related obligation to negotiate terms with other mobile companies involved in the auction will be key to understanding the phasing of 5G investments for Deutsche Telekom. Management has publicly stated that national roaming may discourage companies to invest heavily because their efforts may be exploited by competitors.

We believe Deutsche Telekom will continue to report high capital spending of around 17% in the next two years. ESG considerations The telecommunications sector's exposure to environmental risks is low and social risks is moderate. See our environmental risks heat map and social risks heat map for further information.

From a corporate governance perspective, Deutsche Telekom is a public company, with the German government being the major shareholder (31.9% total participation, of which 17.4% is through KFW). The company was privatised in 1996, with the government gradually reducing its stake to the current 31.9%. Deutsche Telekom has clearly defined metrics in terms of financial policy, within its defined comfort leverage zone, which is shared and approved by the board of directors; has a strong corporate governance protocol and procedures in place; and closely complies with all social and human resources policies and commitments.

Deutsche Telekom presents a financial policy inclusive of a reported net debt/EBITDA target range of 2.25x-2.75x, revised after the IFRS 16 adoption. Deutsche Telekom reiterated its commitment towards the net leverage corridor and deleveraging after the announcement of the US merger. We also note the increased complexity of the group as it fully consolidates T-Mobile USA while it only holds a 43% stake in the company.

The company's exposure to environmental and social risks is low and in line with the overall industry. Electromagnetic radiation (for example, from mobile antennas or mobile handsets) has repeatedly been said to be potentially harmful to the environment and health. While the need for higher mobile data speeds will increase electromagnetic radiation, we do not see it as a significant environmental risk for global telecommunication providers, given the existing regulatory radiation limits and ongoing technology improvements. In terms of social risks, data security and data privacy issues are prominent in the sector. Telecommunications providers exchange large amounts of data, and a breach could cause legal, regulatory or reputational issues. In addition, a breach could result in increased operational costs to mitigate cyberattacks and reduce exposure to the loss of private data. Liquidity analysis Deutsche Telekom's policy includes maintaining a liquidity reserve that covers debt maturities of at least 24 months. Over this period, we believe that internal and external liquidity sources will enable the company to cover its debt maturities and other expected cash demands.

The company has cash and cash equivalents of €9 billion (including T-Mobile USA) and €12.6 billion of bilateral credit facilities (fully available) with no material adverse change clause or financial covenants. The facility has an original maturity of 36 months, which can be extended (subject to an agreement with the respective counterparty) after each 12-month period by an additional 12 months. Additionally, T-Mobile USA has full availability under its $5.5 billion revolver.

8 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 8 Deutsche Telekom's liquidity sources cover more than two years of debt maturities Deutsche Telekom's standalone maturity profile as of December 2020

DT Maturities OTE MT 12

10

8

6 EUR billionEUR 4

2

0 2021 2022 2023 2024 2025 2026 2027 2028 2029 >2030 Source: Company

Exhibit 9 T-Mobile will maintain very good liquidity over the next 12-18 months to address total cash needs including debt maturities in 2021 and 2022 T-Mobile USA's maturity profile as of December 2020

30

25

20

15 USD billionUSD 10

5

0 2021 2022 2023 2024 2025 2026 2027 2028 2029 >2030 Source: Company

Structural considerations Despite the increase in the percentage of external debt at the US operating company level following the US merger, we have not notched down the ratings for structural subordination. This is because Deutsche Telekom’s creditors mainly rely on the cash flow generated by the company outside of the US to service the debt at the parental level.

In addition, we have factored in management’s determination to keep T-Mobile USA as a financially independent, self-funded entity. Methodology and scorecard The scorecard-indicated outcome based on our 12-18-month forward view for Deutsche Telekom is Baa1. The difference between the Baseline Credit Assessment (BCA) of baa2 and the scorecard-indicated outcome of Baa1 is explained by our expectation that leverage will remain above the guidance for the current rating for a relatively long period; the company's increasing exposure to a Ba2-rated asset; and the substantial integration risk stemming from the merger between T-Mobile and Sprint.

The scorecard presented below includes gross debt figures for both leverage and coverage credit metrics as per the Telecommunications Service Providers rating methodology, published in January 2017. Nevertheless, for analytical purposes, we assess and monitor Deutsche Telekom, taking into consideration its net debt figures.

9 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 10 Rating factors Deutsche Telekom AG

Moody's 12-18 Month Forward Current View Telecommunications Service Providers Industry Scorecard [1][2] 2020 As of 3/24/2021 [3] Factor 1 : Scale (12.5%) Measure Score Measure Score a) Revenue (USD Billion) $120.0 Aaa $125 - $126 Aaa Factor 2 : Business Profile (27.5%) a) Business Model, Competitive Environment and Technical Positioning Aa Aa Aa Aa b) Regulatory Environment Baa Baa Baa Baa c) Market Share A A A A Factor 3 : Profitability and Efficiency (10%) a) Revenue Trend and Margin Sustainability A A A A Factor 4 : Leverage and Coverage (35%) a) Debt / EBITDA 3.9x B 3.8x - 4.0x B b) RCF / Debt 19.0% B 19% - 20% B c) (EBITDA - CAPEX) / Interest Expense 3.0x Ba ~3.0x Ba Factor 5 : Financial Policy (15%) a) Financial Policy Baa Baa Baa Baa Rating: a) Scorecard-Indicated Outcome Baa1 Baa1 b) Actual Rating Assigned Baa1

Government-Related Issuer Factor a) Baseline Credit Assessment baa2 b) Government Local Currency Rating Aaa c) Default Dependence Low d) Support Moderate e) Actual Rating Assigned Baa1

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. [2] As of year-end 2020. [3] This represents Moody's forward view, not the view of the issuer, and unless noted in the text, does not incorporate significant acquisitions and divestitures. Sources: Moody’s Financial Metrics™ and Moody's Investors Service estimates

Ratings

Exhibit 11 Category Moody's Rating DEUTSCHE TELEKOM AG Outlook Stable Senior Unsecured Baa1 Subordinate MTN -Dom Curr (P)Baa1 Commercial Paper P-2 DEUTSCHE TELEKOM INTERNATIONAL FINANCE B.V. Outlook Stable Bkd Senior Unsecured Baa1 Bkd Subordinate MTN -Dom Curr (P)Baa1 Source: Moody's Investors Service

10 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Appendix

Exhibit 12 Peer comparison [1][2] Deutsche Telekom AG Telefonica S.A. Vodafone Group Plc BT Group Plc Orange Baa1 Negative Baa3 Stable Baa2 Negative Baa2 Negative Baa1 Stable

FYE FYE LTM FYE FYE LTM FYE FYE LTM FYE FYE LTM FYE FYE LTM (in US millions) Dec-19 Dec-20 Mar-21 Dec-19 Dec-20 Dec-20 Mar-20 Mar-21 Mar-21 Mar-20 Mar-21 Mar-21 Dec-19 Dec-20 Dec-20 Revenues $90,155 $115,274 $125,366 $54,209 $49,164 $49,164 $49,978 $51,116 $51,116 $29,027 $27,945 $27,945 $47,286 $48,244 $48,244 EBITDA $30,278 $42,536 $47,398 $18,177 $16,181 $16,181 $19,591 $22,189 $22,189 $10,018 $9,711 $9,711 $16,214 $16,185 $16,185 Total Debt $102,729 $177,342 $176,066 $68,692 $68,039 $68,039 $84,874 $77,812 $77,812 $31,662 $38,193 $38,193 $53,072 $56,708 $56,708 Cash & Cash Equivalents $6,020 $15,785 $11,603 $6,883 $6,857 $6,857 $18,778 $10,538 $10,538 $8,252 $6,378 $6,378 $12,132 $13,889 $13,889 EBITDA Margin 33.6% 36.9% 37.8% 33.5% 32.9% 32.9% 39.2% 43.4% 43.4% 34.5% 34.7% 34.7% 34.3% 33.5% 33.5% (EBITDA-CAPEX) / Interest Expense 3.3x 3.0x 3.1x 3.8x 3.6x 3.6x 3.5x 3.7x 3.7x 3.5x 2.2x 2.2x 3.4x 3.8x 3.8x Debt / EBITDA 3.4x 3.9x 3.7x 3.8x 3.9x 3.9x 4.4x 3.5x 3.5x 3.2x 3.7x 3.7x 3.3x 3.3x 3.3x FCF / Debt 3.0% -1.2% 1.0% 4.8% 5.0% 5.0% 2.9% 3.0% 3.0% 2.8% 1.7% 1.7% -1.4% 4.3% 4.3% RCF / Debt 22.9% 18.9% 19.8% 19.0% 20.9% 20.9% 17.0% 20.6% 20.6% 19.1% 21.7% 21.7% 18.5% 24.4% 24.4%

[1] All figures and ratios calculated using Moody's estimates and standard adjustments. [2] FYE = Financial year-end. LTM = Last 12 months. RUR* = Ratings under review, where UPG = for upgrade and DNG = for downgrade. Source: Moody's Financial Metrics™

Exhibit 13 Moody's-adjusted debt reconciliation for Deutsche Telekom AG[1][2] FYE FYE FYE FYE FYE in EUR millions Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 As Reported Debt 60,958.0 55,140.0 59,589.0 83,063.0 137,256.0 Non-Standard Public Adjustments 75.0 100.0 3,194.0 2,624.0 0.0 Pensions 8,451.0 8,375.0 5,502.0 5,831.0 7,684.0 Leases 14,173.8 13,713.4 15,533.8 0.0 0.0 Hybrid Securities -948.7 0.0 0.0 0.0 0.0 Moody's-Adjusted Debt 82,709.1 77,328.4 83,818.8 91,518.0 144,940.0 [1] All figures are calculated using Moody's estimates and standard adjustments. [2] Periods are financial year-end unless indicated. LTM = Last 12 months. Source: Moody's Financial Metrics™

Exhibit 14 Moody's-adjusted EBITDA reconciliation for Deutsche Telekom AG[1][2] FYE FYE FYE FYE FYE in EUR millions Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 As Reported EBITDA 20,924.0 22,275.0 21,260.0 27,857.0 38,014.0 Non-Standard Public Adjustments 53.0 -76.0 529.0 -87.0 0.0 Interest Expense - Discounting -282.0 -178.0 -178.0 -229.0 -531.0 Unusual Items - Income Stmt -927.0 -530.0 -60.0 -490.0 0.0 Pensions -29.0 1.0 -40.0 -5.0 -215.0 Leases 3,900.0 3,900.0 3,900.0 0.0 0.0 Moody's-Adjusted EBITDA 23,639.0 25,392.0 25,411.0 27,046.0 37,268.0 [1] All figures are calculated using Moody's estimates and standard adjustments. [2] Periods are financial year-end unless indicated. LTM = Last 12 months. Source: Moody's Financial Metrics™

11 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

Exhibit 15 Summary financials Deutsche Telekom AG

FYE FYE FYE FYE FYE (in EUR million) Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 2021E 2022E INCOME STATEMENT Revenue 73,095 74,947 75,656 80,531 100,999 105,423 106,164 EBITDA 23,639 25,392 25,411 27,046 37,268 38,680 39,378

BALANCE SHEET Cash & Cash Equivalents 7,739 3,304 3,667 5,368 12,901 12,901 12,901 Total Debt 82,709 77,328 83,819 91,518 144,829 158,599 155,037 Net Debt 74,970 74,024 80,152 86,150 131,928 145,660 142,098

CASH FLOW Cash Flow From Operations (CFO) 18,768 20,470 23,453 22,930 23,409 29,523 32,129 Capital Expenditures (14,170) (15,368) (15,102) (16,649) (22,031) (23,655) (23,563) RCF / Net Debt 25.1% 28.5% 27.5% 24.3% 20.8% 20.6% 21.6% Free Cash Flow (FCF) 3,002 3,543 5,097 2,720 (1,689) 2,762 5,430 FCF / Net Debt 4.0% 4.8% 6.4% 3.2% -1.3% 1.9% 3.8%

PROFITABILITY EBITDA Margin % 32.3% 33.9% 33.6% 33.6% 36.9% 36.7% 37.1%

INTEREST COVERAGE (EBITDA - CAPEX) / Interest Expense 2.7x 3.0x 3.1x 3.3x 3.0x 2.9x 3.1x

LEVERAGE Net Debt / EBITDA 3.2x 2.9x 3.2x 3.2x 3.5x 3.8x 3.6x

Sources: Moody’s Financial Metrics™ and Moody's Investors Service estimates

Endnotes 1 Fibre is defined by the company as a ≥100 megabits per second technology inclusive of FTTH, FTTB and FTTC, with vectoring and cable/ED3.

12 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable MOODY'S INVESTORS SERVICE CORPORATES

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13 21 June 2021 Deutsche Telekom AG: Update following outlook change to stable