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

24 Group Headquarters & Shared Services. Group Headquarters & Shared Services performs strategic and cross-divisional management functions for the Deutsche Telekom Group and is responsible for operating activities that are not directly related to the core business of the operating segments. Since January 1, 2012, Deutsche Telekom has pooled the tasks and functions of the Digital Services growth business as well as the Internet service provider STRATO, which as of December 31, 2011 were still largely part of the Germany operating segment, as the Digital Business Unit (DBU) under Group Headquarters & Shared Services. The prior-year figures have been adjusted for better comparability. For more information, please refer to the disclosures under segment reporting in the interim consolidated financial statements (page 35). As of March 31, 2012, Vivento, our personnel service provider, had a workforce of about 8,600 employees (March 31, 2011: around 9,000), of which around 3,500 were deployed externally, mainly in the public sector, for example at the Federal Employment Agency. Another 3,100 or so employees were employed within the Group, especially in service centers. About 2,000 employees were placed in Vivento’s operational and strategic units or continued to be managed by Vivento. While Vivento took on a total of around 300 new employees in the reporting period, around 200 employees left the personnel service provider to pursue new opportunities. Development of operations. Q1  2012  millions of € Q1 2011 millions of € Change millions of € Change % FY 2011 millions of € Total revenue 717 735 (18) (2.4) 2,977 Of which: Digital Business Unit 194 200 (6) (3.0) 843 Loss from operations (EBIT) (414) (324) (90) (27.8) 1,242 Depreciation, amortization and impairment losses (211) (189) (22) (11.6) (839) EBITDA (203) (135) (68) (50.4) 2,081 Special factors affecting EBITDA (66) (6) (60) n.a. 2,698 EBITDA (adjusted for special factors) (137) (129) (8) (6.2) (617) Of which: Digital Business Unit 56 47 9 19.1 168 Cash capex (155) (111) (44) (39.6) (488) Total revenue. Total revenue at Group Headquarters & Shared Services in the reporting period decreased slightly by 2.4 percent year-on-year, primarily due to measures to make the use of floor-space more efficient in the operating segments and the reduction in T-Online shop business. The latter was achieved by focusing on profitable growth in our Digital Business Unit growth area. EBITDA, adjusted EBITDA. Adjusted EBITDA at Group Headquarters & Shared Services decreased slightly year-on-year in the first quarter of the 2012 financial year. This decrease is due to non-recurring positive effects recorded in the first quarter of 2011. However, lower expenses for the cost allocation of IT services and a slight improvement in earnings at the Digital Business Unit had a positive effect in the first three months of 2012. Overall, EBITDA was negatively impacted by special factors of EUR 66 million in the reporting period, primarily due to expenses in connection with staff-related measures, mainly for early retirement. The refund received from Kreditanstalt für Wiederaufbau in connection with a settlement reached with the United States in 2005 was a positive special factor. In the same period of 2011, EBITDA was negatively impacted by special factors of EUR 6 million – mainly due to expenses in connection with staff-related measures. EBIT. Loss from operations (EBIT) increased by EUR 0.1 billion year on year – primarily as a result of the aforementioned special factors.