The HR Report 2011/2012.

30 Competitive workforceHR Big 4 and Group strategy Service culture Talent agenda HR@2012 Competitive workforce in a lean, efficient organization. A view of current and future business areas: Organizational restructuring in the Group. In 2010, in Germany and under the Group umbrella, we merged the mobile and fixed-network arms into One Company. The same change has already been com- pleted in Croatia, Slovakia and Hungary. We are supporting the implementation of new business models and more efficient inter- nal processes through further organizational changes: With regard to Business Customer Sales, employers and em- ployee representatives have agreed that the existing fragment- ed IT structure in the Germany segment be streamlined. In fu- ture, Business Customer Sales will be represented by 16 sales and service centers and 28 sales offices, with IT concentrated in eight innovation centers. This transformation is to be com- pleted by mid-2014. New company for fiber-optic network expansion: On January 1, 2012 we set up our own German company for the expan- sion of the fiber-optic network. This will enable us to expand the broadband network more quickly as well as make it more flexible and economic. Moreover, the new company gives us the chance to retain within the Group more junior staff with skills for the future. Accounting: We are combining our accounting operations for Europe and South Africa in Bratislava. This is a successful ex- ample of constructive employee relations on a European level. The European Works Council (EWC) received early notification and made comprehensive use of its consultation rights. OTE: The crisis in Greece means that the OTE transformation is taking place in a very difficult economic and political atmos- phere. In spite of this situation and despite the restrictions of labor law and collective agreements dating from the time when OTE was a nationalized company, we have been able to make some important progress. Through a range of measures – including overtime reductions, shorter working weeks with lower salaries, as well as the training and transfer of employees from non-profitable workplaces to new roles – we have been able to make substantial reductions to the high personnel costs. T-Systems has been operating in Germany since July 1, 2011 – and since January 1, 2012 in all business units worldwide – in a new business structure implemented as part of the Act4Service project. It is subdivided into Sales, Service, Pro- duction and Systems Integration areas. The new structure creates the conditions for easier operations across sectors and national boundaries. Service Headquarters: 2011 saw the launch of plans for a smaller, more focused Service Headquarters. These will be implemented in the second half of 2012 following consultation with employee representatives. From then on our Group Head- quarters will be staffed by fewer than 1,000 employees, man- aged with more strategic, performance and results-based focus. T-Mobile USA: On March 20, 2011 Deutsche Telekom AG and AT&T signed a contract for the sale of T-Mobile USA. Following the U.S. authorities’ decisive stance against the transaction, the sales agreement was canceled on December 19, 2011. In 2012 we will embark on qualitative HR planning for T-Mobile USA on the basis of Total Workforce Management and imple- ment the necessary demand-based restructuring.

The HR Report 2011/2012.

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