Connected life and work. The future, today. The 2008 fi nancial year. Life is for sharing. Selected fi nancial data of II the Deutsche Telekom Group. billions of € Change compared to prior year (%) a 2008 2007 2006 2005 2004 Revenue and earnings Net revenue (1.4) 61.7 62.5 61.3 59.6 57.3 Of which: domestic (%) (2.3) 46.8 49.1 52.9 57.4 60.6 Of which: international (%) 2.3 53.2 50.9 47.1 42.6 39.4 Profit from operations (EBIT) 33.2 7.0 5.3 5.3 7.6 6.3 Net profit n.a. 1.5 0.6 3.2 5.6 1.6 Net profit (adjusted for special factors) 14.0 3.4 3.0 3.9 4.7 3.7 EBITDA a, b, c 6.6 18.0 16.9 16.3 20.1 19.4 EBITDA (adjusted for special factors) a, b, c 0.7 19.5 19.3 19.4 20.7 19.6 EBITDA margin (adjusted for special factors) (%) a 0.7 31.6 30.9 31.7 34.8 34.2 Balance sheet Total assets 2.0 123.1 120.7 130.2 128.5 125.5 Shareholders’ equity (4.7) 43.1 45.2 49.7 48.6 45.5 Equity ratio (%) a, d (2.4) 32.3 34.7 35.8 35.5 34.2 Financial liabilities (in accordance with consolidated balance sheet) 8.6 46.6 42.9 46.5 46.7 51.1 Net debt a, c 2.5 38.2 37.2 39.6 38.6 39.9 Additions to intangible assets (including goodwill) and property, plant and equipment 11.5 10.1 9.1 13.4 11.1 6.6 Cash flows Net cash from operating activities e 12.1 15.4 13.7 14.2 15.1 16.7 Cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment (in accordance with cash flow statement) (8.6) (8.7) (8.0) (11.8) (9.3) (6.4) Proceeds from disposal of intangible assets (excluding goodwill) and property, plant and equipment (in accordance with cash flow statement) (51.1) 0.4 0.8 0.6 0.4 0.6 Free cash flow (before dividend payments) a, c, f, g 6.9 7.0 6.6 3.0 6.2 10.9 Free cash flow as a percentage of revenue a 0.9 11.4 10.5 4.9 10.3 18.9 Net cash used in investing activities e (41.3) (11.4) (8.1) (14.3) (10.1) (4.5) Net cash used in financing activities 49.4 (3.1) (6.1) (2.1) (8.0) (12.9) Employees Average number of employees (full-time equivalents without trainees/student interns) (thousands) (3.6) 235 244 248 244 248 Revenue per employee (thousands of €) a 2.4 262.5 256.5 246.9 244.3 231.7 T-Share – key figures Earnings per share/ADS (basic and diluted) in accordance with IFRS (€) h n.a. 0.34 0.13 0.74 1.31 0.39 Weighted average number of ordinary shares outstanding (basic) (millions) h, i 0.0 4,340 4,339 4,353 4,335 4,323 Weighted average number of ordinary shares outstanding (diluted) (millions) h, i 0.0 4,340 4,340 4,354 4,338 4,328 Dividend per share/ADS (€) 0.0 0.78 j 0.78 0.72 0.72 0.62 Dividend yield (%) k 2.1 7.3 5.2 5.2 5.1 3.7 Total dividend (billions of €) 0.0 3.4 j 3.4 3.1 3.0 2.6 Number of ordinary shares carrying dividend rights (millions) l 0.0 4,341 m 4,340 4,339 4,174 4,171 Total number of ordinary shares at the reporting date (millions) n 0.0 4,361 4,361 4,361 4,198 4,198 a Calculated on the basis of millions for the purpose of greater precision. Changes to percentages acquisition of licenses totaling EUR 3.3 billion; and figures for 2005 include payments for the expressed as percentage points. acquisition of network infrastructure and licenses in the United States totaling EUR 2.1 billion. b Deutsche Telekom defines EBITDA as profit/loss from operations before depreciation, amortization g Since the beginning of the 2007 financial year, Deutsche Telekom has defined free cash flow and impairment losses. as cash generated from operations less interest paid and net cash outflows for investments in c EBITDA, EBITDA adjusted for special factors, net debt, and free cash flow are non-GAAP figures intangible assets (excluding goodwill) and property, plant and equipment. Prior-year figures have not governed by the International Financial Reporting Standards (IFRS). They should not be been adjusted accordingly. viewed in isolation as an alternative to profit or loss from operations, net profit or loss, net cash h Calculation of basic and diluted earnings per share in accordance with IFRS as specified in from operating activities, the debt reported in the consolidated balance sheet, or other Deutsche IAS 33, “Earnings per share.” The share to ADS ratio is 1:1. Telekom key performance indicators presented in accordance with IFRS. For detailed information i Less treasury shares held by Deutsche Telekom AG. and calculations, please refer to the section on “Development of business in the Group” of the j Subject to approval by the shareholders’ meeting. For more detailed explanations, please refer Group management report in this Annual Report. to Note 13 in the notes to the consolidated financial statements, “Dividend per share.” d Based on shareholders’ equity excluding amounts earmarked for dividend payments, which are k (Proposed) dividend per share divided by the Xetra closing price of the T-Share at the reporting treated as current liabilities. date or on the last trading day of the respective financial year. e Current finance lease receivables were previously reported in net cash from operating activities. l Less treasury shares held by Deutsche Telekom AG and those shares that, as part of the issue Since 2007 they have been reported under net cash from/used in investing activities. Prior-year of new shares in the course of the acquisition of T-Mobile USA/Powertel, are held in trust for later figures have been adjusted accordingly. issue and later trading as registered shares or American depositary shares (ADSs). f Before cash outflows totaling EUR 0.1 billion in 2007 for investments in parts of Centrica PLC m Balance at the reporting date. taken over by T-Systems UK as part of an asset deal. Figures for 2006 include payments for the n Including treasury shares held by Deutsche Telekom AG. Operating segments of the Deutsche Telekom Group. Mobile Communications Europe Broadband/Fixed Network. T-Home is taking a leading position in the German DSL market, with a retail and Mobile Communications USA. customer base of 10.6 million and a total market share of around 46 percent. With more than 128 million customers, T-Mobile International is a global The number of fixed-network lines continued to decrease, however, due leader of mobile communications. T-Mobile set innovative trends with the to competition and regulation. For the first time, there were also line losses Apple iPhone 3G, which we market on an exclusive basis in Germany, and on technical grounds as a result of the migration of resale customers to the T-Mobile G1, the first mobile device using the open Android software the all-IP platform. T-Home’s share in the market for net DSL additions which we played a major role in developing. Together with attractive rate increased to 45 percent. Innovative products such as Entertain and the plans, both devices helped to increase our competitiveness in Germany Call & Surf all-in-one packages were key to this success. And Stiftung and abroad. T-Mobile Deutschland defended its leading position in Warentest rated T-Home as the best Internet provider on the German Germany, while T-Mobile USA is creating the conditions for further growth market. Our Eastern European majority holdings achieved double-digit in mobile data business by consistently optimizing its network. The Eastern growth rates in broadband business. European mobile communication companies also achieved significant growth in terms of contract customers. billions of € Change compared billions of € Change compared to prior year (%) a 2008 2007 to prior year (%) a 2008 2007 Total revenue (6.0) 21.3 22.7 Mobile Communications Europe EBIT (profit from operations) (10.3) 2.9 3.3 Total revenue (0.2) 20.7 20.7 Depreciation, amortization and impairment losses 1.7 (3.6) (3.7) EBIT (profit from operations) 30.9 3.2 2.4 EBITDA b, c (5.8) 6.5 6.9 Depreciation, amortization and impairment losses 8.6 (3.9) (4.2) Special factors affecting EBITDA c (0.9) (0.8) EBITDA b, c 5.8 7.1 6.7 EBITDA (adjusted for special factors) b, c (4.4) 7.4 7.8 Special factors affecting EBITDA c (0.1) (0.1) EBITDA margin a, b, c EBITDA (adjusted for special factors) b, c 4.9 7.2 6.8 (adjusted for special factors) (%) 0.6 34.8 34.2 d EBITDA margin Cash capex (11.7) (3.1) (2.8) (adjusted for special factors) (%) a, b, c 1.8 34.7 32.9 Average number of employees (full-time Cash capex d 2.1 (1.9) (1.9) equivalents, without trainees/student interns) (3.5) 94,287 97,690 Average number of employees (full-time equivalents, without trainees/student interns) (5.1) 29,237 30,802 Mobile Communications USA Total revenue 6.3 15.0 14.1 EBIT (profit from operations) 14.0 2.3 2.0 Depreciation, amortization and impairment losses 0.4 (1.9) (1.9) EBITDA b, c 7.0 4.2 3.9 Special factors affecting EBITDA c (0.1) (0.0) EBITDA (adjusted for special factors) b, c 8.5 4.2 3.9 EBITDA margin (adjusted for special factors) (%) a, b, c 0.5 28.3 27.8 Cash capex d (29.7) (2.5) (2.0) Average number of employees (full-time equivalents, without trainees/student interns) 14.0 36,076 31,655 Mobile Communications e Total revenue 2.4 35.6 34.7 EBIT (profit from operations) 23.2 5.5 4.5 Depreciation, amortization and impairment losses 6.1 (5.8) (6.1) EBITDA b, c 6.2 11.2 10.6 Special factors affecting EBITDA c (0.2) (0.1) EBITDA (adjusted for special factors) b, c 6.2 11.4 10.7 EBITDA margin a (adjusted for special factors) (%) a, b, c 1.1 32.0 30.9 Calculated on the basis of millions for greater precision.