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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

20 The changes regarding T-Mobile USA (reclassification of the U.S. operations) described above resulted in a substantial shift in the Group’s assets from non- current assets (reduced by 33.8 percent) to current assets (more than doubled). At the same time, non-current liabilities decreased by 15.4 percent, whereas current liabilities increased by 30.7 percent. In total, assets decreased by EUR 3.2 billion and liabilities by EUR 0.9 billion. The reclassification of U.S. operations is generally not dealt with in any detail in the following analysis. For further information, please refer to the interim consolidated financial statements. Cash and cash equivalents decreased by EUR 0.7 billion compared with December 31, 2010, largely as a result of the reclassification of T-Mobile USA to non-current assets and disposal groups held for sale. For detailed information on this change, please refer to the consolidated statement of cash flows and selected notes to the consolidated statement of cash flows in the interim consolidated financial statements. Trade and other receivables decreased by EUR 0.3 billion. The Europe operat- ing segment and Group Headquarters & Shared Services accounted for much of this decline with EUR 0.2 billion respectively. Trade and other receivables in the Systems Solutions operating segment rose by EUR 0.3 billion. Other current assets decreased by EUR 0.2 billion. Both recoverable income taxes and inventories declined by EUR 0.1 billion respectively. Miscellaneous other current assets included an increase of EUR 0.3 billion in the Group’s advance VAT payments reported in the course of the year, which was offset by write-offs of prepaid expenses and deferred charges amounting to EUR 0.3 billion in connection with pension payments made for civil servants. The decline in intangible assets was mainly attributable to the reclassification of assets of the United States operating segment (T-Mobile USA), exchange rate effects of EUR 1.7 billion, and amortization and impairment losses of EUR 2.2 billion. Investments were made in the amount of EUR 1.2 billion. The decline in property, plant and equipment was mainly attributable to the reclassification of assets of the United States operating segment (T-Mobile USA), exchange rate effects of EUR 0.7 billion, and depreciation and impairment losses of EUR 4.9 billion. Investments were made in the amount of EUR 3.6 billion. Investments accounted for using the equity method declined by EUR 0.6 billion, mainly due to dividend payments of EUR 0.5 billion. Other non-current assets increased by EUR 0.6 billion, primarily as a result of changes in the fair value of cross-currency swaps totaling EUR 0.3 billion and the revaluation of an investment in Telekom Srbija by EUR 0.2 billion. Current and non-current financial liabilities decreased by EUR 0.6 billion compared with the end of 2010. For more information, please refer to the table on the following page and the accompanying explanations. Current provisions decreased by EUR 0.2 billion compared with the end of 2010 due to fluctuations in variable salary components. The increase of EUR 0.3 billion in non-current provisions is largely attributable to the civil servant early retirement program. The decline in other non-current liabilities was mainly due to the reclassifica- tion of deferred tax liabilities in the United States operating segment. Shareholders’ equity decreased by EUR 2.3 billion to EUR 40.7 billion. It was impacted by the dividend payments of EUR 3.5 billion (including non- controlling interests), the negative effect of currency translation of foreign operations in the amount of EUR 0.7 billion as well as the fair value measure- ments of hedging instruments in the amount of EUR 0.6 billion. The profit of EUR 2.2 billion has an offsetting effect.