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

39Interim Group management report Development of business. In the first nine months of the 2011 financial year, our Systems Solutions operating segment (T-Systems) secured strategically significant new deals in the ICT corporate customer market. In addition to big deals concluded with Shell, Daimler and others such as the large-scale outsourcing agreement with Everything Everywhere, the joint venture between Deutsche Telekom and France Télécom in the United Kingdom, a significant number of contracts were also concluded in the growth area of cloud computing. These dynamic services allow customers to receive bandwidth, computing capacity, and memory on demand, pay for what they use and share the infrastructure. In addition, com- panies are increasingly using software securely via the Net (private cloud) to manage their business processes. T-Systems has significantly expanded these dynamic resources in the past few months. New deals in this area increased the level of new orders by around 8.0 percent year-on-year. The number of servers managed and serviced decreased by 2.2 percent in the reporting period compared with the prior year, mainly as a consequence of the consolidation of data centers and the higher utilization rate of more power- ful servers. The number of workstations managed and serviced increased by 1.5 percent, mainly due to new orders, such as the extensive outsourcing agree- ment with Everything Everywhere. Systems Integration also continued to per- form well, with T-Systems billing substantially more hours than in the prior-year period and increasing the utilization rate once again. In addition to traditional ICT services, intelligent network business (energy, healthcare and connected vehicles) also picked up. In the energy sector, for example, we secured new deals in the first nine months of 2011, most recently with E.ON to trial the sale of smart electricity meters and green power rates in more than 50 Telekom shops and with the meter operator VOLTARIS concerning the recording, transmission and processing of energy data. Development of operations. Q1 2011 millions of € Q2 2011 millions of € Q3 2011 millions of € Q3 2010 millions of € Change % Q1 – Q3 2011 millions of € Q1 – Q3 2010 millions of € Change % FY 2010 millions of € Total revenue 2,260 2,276 2,256 2,205 2.3 6,792 6,578 3.3 9,057 Profit (loss) from operations (EBIT) (11) 22 (62) (25) n. a. (51) 49 n. a. 44 Special factors affecting EBIT (40) (23) (116) (98) (18.4) (179) (147) (21.8) (289) EBIT (adjusted for special factors) 29 45 54 73 (26.0) 128 196 (34.7) 333 EBIT margin (adjusted for special factors) % 1.3 2.0 2.4 3.3 1.9 3.0 3.7 Depreciation, amortization and impairment losses (160) (152) (160) (151) (6.0) (472) (456) (3.5) (623) EBITDA 149 174 98 126 (22.2) 421 505 (16.6) 667 Special factors affecting EBITDA (40) (23) (106) (96) (10.4) (169) (144) (17.4) (281) EBITDA (adjusted for special factors) 189 197 204 222 (8.1) 590 649 (9.1) 948 EBITDA margin (adjusted for special factors) % 8.4 8.7 9.0 10.1 8.7 9.9 10.5 Cash capex (123) (128) (142) (207) 31.4 (393) (575) 31.7 (725) Average number of employees 48,191 48,254 48,255 47,654 1.3 48,234 47,527 1.5 47,588