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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2015 - TO OUR SHAREHOLDERS

Developments in the Group

4 To our shareholders Deutsche Telekom. Interim Group Report 9M 2015. To our shareholders DEVELOPMENTS IN THE GROUP NET REVENUE Net revenue billions of € 45.7 51.4 Q1–Q3 2014 Q1–Q3 2015 0 60 40 50 30 20 10 ƒƒ Net revenue increased substantially by 12.5 percent. Our United States operating segment in particular contributed to this growth, driven by exchange rate effects and continued strong customer additions. ƒƒ Thanks to the positive trend in mobile business in our home market in Germany, revenues in our Germany operating segment increased by 1.4 percent overall. ƒƒ In our Europe operating segment, revenue was slightly down by 1.7 percent against the prior- year level, primarily as a result of competition and regulation. ƒƒ On a like-for-like basis, i.e., excluding exchange rate effects and effects from changes in the composition of the Group, net revenue increased by EUR 2.1 billion or 4.2 percent. PROPORTION OF NET REVENUE GENERATED INTERNATIONALLY Proportion of net revenue generated internationally % 36.4 Domestic 63.6 International ƒƒ The proportion of net revenue generated internationally increased to 63.6 percent, compared with 59.5 percent in the first three quarters of 2014. ƒƒ The proportion of net revenue generated by our United States operating segment increased substantially by 6.9 percentage points, such that it made the largest contribution to net revenue. ƒƒ By contrast, the proportions contributed by our Germany, Europe, and Systems Solutions operating segments as well as the Group Headquarters & Group Services segment shrank. ADJUSTED EBITDA Adjusted EBITDA billions of € 13.1 14.8 Q1–Q3 2014 Q1–Q3 2015 0 16 8 12 4 ƒƒ Adjusted EBITDA also grew substantially by 12.5 percent. ƒƒ Our United States operating segment made the biggest contribution, increasing by around EUR 1.6 billion. The trend was accompanied by positive exchange rate effects totaling around EUR 0.7 billion. ƒƒ Increased employee-related expenses in connection with the network upgrade and build-out in Germany and due to the larger customer base in the United States, as well as operational EBITDA decreases in some European countries reduced adjusted EBITDA. The negative effects were partially offset by our comprehensive cost management. ƒƒ The adjusted EBITDA margin of 28.7 percent was at the prior-year level. The operating segments with the strongest margins are still Germany with 40.1 percent and Europe with 34.2 percent. NET PROFIT Net profit billions of € 3.0 2.3 Q1–Q3 2014 Q1–Q3 2015 0 4 3 2 1 ƒƒ Net profit decreased by EUR 0.7 billion to EUR 2.3 billion. ƒƒ This decline is primarily attributable to income of EUR 2.1 billion recorded in the prior year – EUR 1.7 billion resulting from divestitures in connection with the sale of the Scout24 group and EUR 0.4 billion from a spectrum transaction between T-Mobile US and Verizon Communications. It was also attributable to the increase of EUR 0.4 billion in depreciation and amortization compared with the prior-year period, primarily due to the roll-out of the LTE network as part of T-Mobile USʼ network modernization program. ƒƒ The decrease was partially offset by a EUR 0.1 billion lower tax expense and a EUR 0.2 billion lower loss from financial activities.

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