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Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2012

10 At 36.9 percent, just half a percentage point down against the prior-year period, our Germany operating segment again provided the largest contribution to the net revenue of the Group. The increase in revenue in the United States operat- ing segment in conjunction with the downward trend in revenue in the other segments resulted in an increase of 0.7 percentage points in the proportion of net revenue contributed by the United States. This is also reflected in the proportion of net revenue generated internationally, which increased in the reporting period from 54.9 percent to 55.6 percent. The contributions of the other segments to net revenue remained almost constant. EBITDA, adjusted EBITDA. Inthefirstquarterof2012,wegeneratedEBITDAofEUR 4.0billion,EUR 0.3 billion less than in the same period in 2011. In addition to the decline in revenue, our EBITDA was adversely affected mainly by an increase in special factors of around EUR 0.3 billion. They mainly comprised expenses incurred in connec- tion with staff-related measures and non-staff-related restructuring expenses, totaling EUR 0.6 billion. Earnings of around EUR 0.1 billion from Kreditanstalt für Wiederaufbau in connection with legal proceedings concluded in the reporting period had a positive impact. Overall, exchange rate effects only marginally affected the development of our EBITDA. Excluding special effects, which had a negative impact, adjusted EBITDA remained stable in the first quarter of 2012 compared with the same period in the prior year, at EUR 4.5 billion. For detailed information on the development of EBITDA/adjusted EBITDA in our segments, please refer to the section “Development of business in the operating segments” (page 13 et seq.). Contribution of the operating segments to adjusted Group EBITDA. Q1  2012  millions of € Q1 2011 millions of € Change millions of € Change % FY 2011  millions of € EBITDA (adjusted for special factors) in the Group 4,477 4,480 (3) (0.1) 18,685 Germany 2,302 2,350 (48) (2.0) 9,474 Europe 1,173 1,226 (53) (4.3) 5,241 United States 983 871 112 12.9 3,831 Systems Solutions 192 189 3 1.6 872 Group Headquarters & Shared Services (137) (129) (8) (6.2) (617) Reconciliation (36) (27) (9) (33.3) (116) EBIT. GroupEBITdecreasedbyEUR 0.4 billiontoEUR 1.2 billioncomparedwiththe first quarter of 2011, primarily due to the aforementioned effects. At EUR 2.7 billion, depreciation, amortization and impairment losses were at the same level as in the prior-year quarter. In the first three months of 2011, the classification of our United States operating segment as a discontinued operation had to be taken into account. As a result, no depreciation, amortization or impairment losses were recorded pro rata temporis for this segment. The classification as a dis- continued operation was reversed as of the end of the 2011 financial year. Profit/loss before income taxes. Profit before income taxes decreased by EUR 0.3 billion to EUR 0.7 billion year-on-year in the first quarter of 2012. The decrease of EUR 0.1 billion in loss from financial activities was not sufficient to offset the aforementioned effects. The change in the loss from financial activities was due in part to the sale of the shares in Telekom Srbija. Net profit. We generated net profit of EUR 0.2 billion in the first quarter of 2012 compared with EUR 0.5 billion in the first quarter of 2011. Year-on-year, the income tax expense decreased substantially in the first quarter of 2012 from EUR 0.4 billion to EUR 0.2 billion, mainly as a result of the lower profit before income taxes. Furthermore, in the prior-year period, our United States operating segment was classified as a discontinued operation. At the time, this resulted in the recognition of deferred tax liabilities of EUR 0.1 billion on temporary differences in connection with the carrying amount of the invest- ment in T-Mobile USA. The aforementioned effects resulted in a EUR 0.1 billion reduction in profit compared with the first quarter of 2011. Profit attributable to non-controlling interests also increased. Thus net profit decreased from EUR 0.5 billion to EUR 0.2 billion. Average number of employees. Q1  2012 Q1 2011 Germany 73,043 74,285 Europe 57,472 62,366 United States 32,029 36,237 Systems Solutions 48,505 48,191 Group Headquarters & Shared Services 23,492 23,887 Number of employees in the Group 234,541 244,966 Of which: civil servants (in Germany, with an active service relationship) 23,522 25,532