DL 2018 q1 Allinone PDF

DEUTSCHE TELEKOM
INTERIM GROUP REPORT

JANUARY 1 TO MARCH 31, 2018
2
SELECTED FINANCIAL DATA OF THE GROUP
millions of €
Q1 2018 Q1 2017 Change % FY 2017

REVENUE AND EARNINGS
Net revenue 17,924 18,646 (3.9) 74,947
Of which: domestic % 33.4 32.7 32.8
Of which: international % 66.6 67.3 67.2
Profit from operations (EBIT) 2,171 2,771 (21.7) 9,383
Net profit (loss) 992 747 32.8 3,461
Net profit (loss) (adjusted for special factors) 1,190 939 26.7 6,039
EBITDA 5,269 5,963 (11.6) 23,969
EBITDA (adjusted for special factors) 5,549 5,550 0.0 22,230
EBITDA margin (adjusted for special factors) % 31.0 29.8 29.7
Earnings per share basic/diluted € 0.21 0.16 31.3 0.74
STATEMENT OF FINANCIAL POSITION
Total assets 138,025 148,624 141,334
Shareholders’ equity 43,691 39,818 42,470
Equity ratio % 31.7 26.8 30.0
Net debt 50,455 49,963 50,791
CASH FLOWS
Net cash from operating activities 4,297 4,355 (1.3) 17,196
Cash capex (3,139) (3,280) 4.3 (19,494)
Free cash flow (before dividend payments and spectrum investment) 1,382 1,228 12.5 5,497
Net cash used in investing activities (3,643) (3,491) (4.4) (16,814)
Net cash (used in) from financing activities (294) 980 n. a. (4,594)
millions
Change Change
Mar. 31, 2018/ Mar. 31, 2018/
Dec. 31, 2017 Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 % Mar. 31, 2017 %
NUMBER OF FIXED-NETWORK AND MOBILE CUSTOMERS
Mobile customers 169.9 168.4 0.9 165.8 2.5
Fixed-network lines 27.8 27.9 (0.4) 28.3 (1.8)
Broadband lines a 19.4 19.0 2.1 18.6 4.3
a Excluding wholesale.
The key parameters used by Deutsche Telekom are defined in the section “Management of the Group” of the 2017 Annual Report, page 38 et seq.
The figures shown in this report were rounded in accordance with standard business rounding principles. As a result, the total indicated may not be equal to the precise sum of the
individual figures.
The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” took effect as of January 1, 2018. Prior-year figures were not
adjusted. For more information, please refer to section “Accounting policies” in the interim consolidated financial statements, page 33 et seq.
Deutsche Telekom. Interim Group Report Q1 2018.

3
CONTENTS
TO OUR SHAREHOLDERS
4 Deutsche Telekom at a glance
6 Highlights in the first quarter of 2018
INTERIM GROUP MANAGEMENT REPORT

8 Group organization, strategy, and management
8 The economic environment
9 Development of business in the Group
15 Development of business in the operating segments
26 Events after the reporting period
26 Forecast
26 Risks and opportunities
INTERIM CONSOLIDATED FINANCIAL STATEMENTS

27 Consolidated statement of financial position
28 Consolidated income statement
29 Consolidated statement of comprehensive income
30 Consolidated statement of changes in equity
32 Consolidated statement of cash flows
33 Significant events and transactions
57 RESPONSIBILITY STATEMENT
58 REVIEW REPORT
ADDITIONAL INFORMATION
59 Reconciliation of alternative performance measures
62 Glossary
62 Disclaimer
63 Financial calendar

4 To our shareholders
TO OUR SHAREHOLDERS
DEUTSCHE TELEKOM AT A GLANCE

NET REVENUE
Net revenue
Net revenue decreased by EUR 0.7 billion to EUR 17.9 billion. Adjusted for exchange rate
billions of €
effects and the slightly negative effects of changes in the composition of the Group, net 20
18.6 17.9
revenue rose 3.1 percent. 15
Our United States operating segment posted a decline in revenue of 5.9 percent; in U.S.

dollars, the continuing success of our U.S. operations was evident in revenue growth of 10
8.7 percent. 5
The business trend was stable in our Germany operating segment, with revenue down

0
1.3 percent due to the first-time application of the IFRS 15 accounting standard.
Q1 2017 Q1 2018
Revenue edged up 1.1 percent at our Europe operating segment, while revenue de-

creased by 2.3 percent in our Systems Solutions operating segment. Revenue also
declined in our Group Development operating segment, mainly as a result of the
deconsolidation of Strato. Adjusted EBITDA
billions of €
8
ADJUSTED EBITDA
Adjusted EBITDA was stable. Excluding exchange rate effects, adjusted EBITDA rose
6 5.6 5.5
6.6 percent. 4
Adjusted EBITDA for our United States operating segment decreased by 2.3 percent;

2
in U.S. dollars, it rose 12.8 percent.
Our Europe and Germany operating segments posted increases in adjusted EBITDA
0
of 2.5 percent and 1.3 percent respectively, while adjusted EBITDA declined in our Q1 2017 Q1 2018
Systems Solutions and Group Development operating segments.
At 31.0 percent, the Group’s adjusted EBITDA margin increased against the prior-

year level of 29.8 percent. The EBITDA margin was 39.1 percent in Germany, 32.4 per-
cent in Europe, and 27.6 percent in the United States. EBIT
billions of €
EBIT 4
EBIT decreased by EUR 0.6 billion to EUR 2.2 billion.

3 2.8
Compared with a year earlier, the special factors affecting EBITDA included an additional
2.2
2
amount of EUR 0.2 billion for staff-related measures. In addition, the prior-year figure
benefited from a positive special factor of EUR 0.5 billion from the sale of Strato. 1
At EUR 3.1 billion, depreciation, amortization and impairment losses were EUR 0.1 bil-
0
lion lower than in the prior-year period. Q1 2017 Q1 2018
NET PROFIT
Net profit increased from EUR 0.7 billion to EUR 1.0 billion.
Net profit
Our loss from financial activities came to EUR 0.4 billion. In the prior-year period, the billions of €

loss from financial activities was EUR 2.0 billion, which was mainly attributable to the 2
EUR 0.7 billion impairment of our financial stake in BT recognized in profit or loss, as 1.5

well as to higher negative remeasurement effects from the exercise and measurement of
1 1.0
embedded derivatives at T-Mobile US.
0.7
Tax expense amounted to EUR 0.5 billion, compared with a tax benefit of EUR 0.1 billion
0.5
in the prior-year period.
0
Profit attributable to non-controlling interests increased by EUR 0.2 billion.
Q1 2017 Q1 2018

To our shareholders 5
EQUITY RATIO
Equity ratio
% The equity ratio increased by 1.7 percentage points to 31.7 percent.

40 Total assets decreased by EUR 3.3 billion compared with the end of 2017, largely due to

30 30.0
31.7 exchange rate effects, for the most part from the translation of U.S. dollars into euros.
Shareholders’ equity increased from EUR 42.5 billion as of December 31, 2017 to

20 EUR 43.7 billion. The main drivers of this increase were profit of EUR 1.3 billion and an
10 effect of EUR 1.9 billion recognized directly in equity, attributable to the transition to
IFRS 9 and IFRS 15. By contrast, shareholders’ equity was reduced by an impairment loss
0
of EUR 0.7 billion on the financial stake in BT recognized directly in equity, by EUR 0.5 bil-
Dec. 31, 2017 Mar. 31, 2018
lion for T-Mobile US’ share buy-back program, and by currency translation effects of
EUR 0.6 billion recognized directly in equity.
Cash capex CASH CAPEX

billions of €
5
Cash capex (including spectrum investment) decreased from EUR 3.3 billion to

EUR 3.1 billion.
4
3.3 3.1
In the reporting period, mobile spectrum licenses were acquired for a total of EUR 0.1 bil-

3
lion, especially in the United States operating segment. In the prior-year period, cash out-
2 flows were lower, particularly in the United States.
1 Adjusted for exchange rate effects, cash capex would have been on par with the prior-year

0 period. Capital expenditures were focused primarily on the United States, Germany, and
Q1 2017 Q1 2018 Europe operating segments and went toward the build-out and upgrading of our net-
works.
Free cash flow FREE CASH FLOW

(before dividend payments and spectrum investment) (BEFORE DIVIDEND PAYMENTS AND SPECTRUM INVESTMENT)
billions of €
Free cash flow was up by EUR 0.2 billion to EUR 1.4 billion.

2
Net cash from operating activities decreased by EUR 0.1 billion year-on-year. Here, too,

1.5 1.4 the positive trend in our United States operating segment was impacted by exchange rate
1.2 effects. Lower net interest payments were a positive factor.
1
The year-on-year decrease of EUR 0.2 billion in cash capex (before spectrum investment)

0.5 enhanced free cash flow.
0
Q1 2017 Q1 2018
NET DEBT
Net debt decreased from EUR 50.8 billion at the end of 2017 to EUR 50.5 billion.

The positive effect of free cash flow (EUR 1.4 billion) was partially offset by the share

Net debt buy-back program at T-Mobile US (EUR 0.5 billion) and the acquisition of Layer3 TV
billions of € (EUR 0.3 billion). Exchange rate effects (EUR 0.6 billion) also had a positive effect.
60
50.8 50.5
40
20
0
Dec 31, 2017 Mar. 31, 2018
For a more detailed explanation, please refer to the section “Development of business in the Group,” page 9 et seq.

6 To our shareholders
HIGHLIGHTS IN THE FIRST QUARTER OF 2018 INVESTMENTS IN NETWORKS

Green light for the largest fiber-optic roll-out project in Germany.
BOARD OF MANAGEMENT Together with the Federal State of Mecklenburg-Western Pomerania,
Dr. Dirk Wössner was appointed as the new Board member responsible we launched the biggest funded fiber-optic project in Germany to date.
for Germany effective January 1, 2018. He succeeds Niek Jan van Damme, Under the project, we will lay some 1,700 km of fiber-optic cable and
whose position as a Board member ended on December 31, 2017. In ad- install more than 1,000 fiber-optic distribution cabinets. 40,000 house-
dition, Adel Al-Saleh was appointed as the new Board member respon- holds and businesses will benefit from the new infrastructure and the
sible for T-Systems and as CEO of T-Systems International GmbH, both first customers will be able to enjoy speeds of up to 1 Gbit/s as early as
effective January 1, 2018. Adel Al-Saleh succeeds Reinhard Clemens, the end of 2018. Further large-scale fiber-optic projects, including in our
whose position on the Board of Management ended effective Decem- European subsidiaries, are being planned or have been approved, such
ber 31, 2017. as the build-out in Bautzen (Germany) and the roll-out of FTTH to up to
one million households and businesses in Greece.
The current CHRO, Dr. Christian P. Illek, will become the new CFO as of
January 1, 2019. The current CFO, Thomas Dannenfeldt, is leaving the High-speed internet rolled out to almost two million additional
Company for personal reasons when his contract expires at the end of households using vectoring. The roll-out of vectoring and ongoing
2018. network modernization activities are also increasing internet band-
widths for consumers. In the first quarter of 2018, almost two million
ACQUISITION OF OTE SHARES additional households in Germany benefited from lines with download
In March 2018, we exercised our right of first refusal as invited by the speeds of up to 100 Mbit/s (at least 50 Mbit/s) and upload speeds of
Greek privatization authority Hellenic Republic Asset Development Fund 40 Mbit/s. We aim to provide as many people as possible with fast
(HRADF) and acquired a five-percent stake in our Greek subsidiary OTE. internet lines – whether they live in cities or in rural areas.
We will purchase additional shares in the amount of EUR 0.3 billion, sub-
sequently holding 45 percent of the shares in OTE. The transaction is European Aviation Network (EAN) ready. Together with Inmarsat and
expected to be closed in the second quarter of 2018. our technology partner Nokia, we have established the first Europe-
wide integrated LTE network with 300 base stations. The network
T-MOBILE US SHARE BUY-BACK PROGRAM offers seamless connectivity over land and water; airline passengers
As part of the share buy-back program launched by T-Mobile US at the can enjoy large bandwidths that allow them to surf social media, share
end of 2017, which will run until the end of 2018 and under which ordi- pictures, and even stream high-bandwidth content all at high trans
nary shares in the company in the volume of up to USD 1.5 billion can mission speeds. Airlines using the service do not have to share the net-
be bought back on the capital market, ordinary shares in the amount of work capacities with LTE users on the ground. EAN will be commercially
USD 1.1 billion had already been bought back as of March 31, 2018. Of available to airlines in the first half of 2018.
this volume, shares worth USD 0.7 billion were bought back in the first
quarter of 2018. In addition, in the first quarter of 2018 we purchased Internet of Things gets off the ground. We are one of the leading
shares in T-Mobile US on the capital market totaling USD 0.2 billion, providers in the large-scale technology roll-out of the Internet of Things
bringing our stake to around 63 percent. (IoT) in Germany, Europe, and North America. The new NarrowBand-IoT
(NB-IoT) network technology is now available in over 600 locations
INCREASE IN EXTERNAL CAPITAL FUNDING FOR across Germany, and more than 200 businesses from various industries
COMPANY PENSIONS are already utilizing its potential. We are also actively working on NB-IoT
Deutsche Telekom places great value on the company pension plan. in seven European markets: Nationwide roll-out in the Netherlands has
Future pension payments are to be underpinned with its own assets. been completed, while T-Mobile Austria was the first provider to launch
To achieve this, in March 2018 the 12 percent financial stake in the BT NB-IoT commercially in Austria. NB-IoT networks are already up and
Group was transferred to the Group’s own trust, Deutsche Telekom running in numerous cities in Poland, Slovakia, the Czech Republic,
Trust e.V., increasing external capital funding significantly from 27 per- Hungary, and Greece, with nationwide coverage expected to be avail-
cent at the end of 2017 to 54 percent at the end of the first quarter of able in many countries by early 2019. In the United States, we are push-
2018. This capital may only be used for pension payments. BT con ing to complete the nationwide roll-out of our low-power sensor network
tinues to be an integral part of our strategic orientation. by mid-year.

To our shareholders 7
INNOVATIONS AND PARTNERSHIPS Open Telekom Cloud wins European tenders. The European nuclear
NOW. NEW. NEXT. That was our motto at this year’s Mobile World research center CERN has enlisted T-Systems to operate the proven
Congress in Barcelona, where we presented new solutions and visions solution developed in 2017 as a pilot system for the Helix Nebula
based on the network of the future for the smart society of today and to- European research cloud. To this end, T-Systems will provide a high-
morrow. The focus was on the new 5G communication standard, which performance solution and a multi-cloud solution, both based on the
will facilitate the interconnection of billions of devices, and the Internet Open Telekom Cloud. Research institutions throughout Europe can use
of Things. Visitors were able to stroll through digital innovations in an these solutions and combine the Open Telekom Cloud with their own IT
urban setting and interact in different experience scenarios, including resources and solutions to create a hybrid model. T-Systems has also
smart city and Industry 4.0, as well as security and future technologies designed a cloud platform for the European Space Agency ESA. The
such as drones, smart fabrics, and augmented reality sports. Copernicus Data and Information Access Services (DIAS) platform was
launched in the first quarter of 2018 and makes earth observation data
Research platform for 5G and new radio cells. Together with our project collected by ESA satellites available to the public via the cloud at no
partners the Hamburg Port Authority and Nokia, we have set up a com- cost for direct processing.
prehensive 5G testing ground extending over some 8,000 hectares of
the Port of Hamburg. The main aim of the research project is to test 5G NEW PRODUCTS, RATE PLANS, AND SERVICES
applications in an industrial environment and gather experience on spe- MagentaMobil XL: unlimited data volume. In March 2018, we pre
cial virtual networks, known as “network slices,” in a real-world setting. sented our new mobile rate plan for the German market: MagentaMobil
Fields of application are being tested that require a particularly reliable XL includes flat rates and unlimited high-speed data in Germany’s best
and secure telecommunication network, such as traffic light control mobile network (as judged by computer magazine Chip 1/2018). Quality-
systems, environmental data measured in real time, and virtual reality. conscious customers with modest data needs can choose the new
Radio cells in the T-Mobile Austria network in Innsbruck are demonstrating entry-level rate plan MagentaMobil XS. We also updated our business
the future of communication right now. Using a preliminary version of customer portfolio with the new Business Mobil XL Plus rate plan
the final 5G standard, the network is reaching record speeds of 2 Gbit/s featuring flat rates and unlimited high-speed data.
with latency of just three milliseconds.
AWARDS
Accession to the Industrial Internet Consortium (IIC). We are now The illustration below shows the main awards received in the first quarter
able to contribute our strengths in the field of IoT connectivity, in par- of 2018. For details on more awards, please go to www.telekom.com/
ticular with NB-IoT and 5G, to the IIC to strengthen Europe’s standing media.
in the global consortium. Our goal is to develop common approaches
for the interoperability of systems in dialog with IIC members and their
partners. Additionally, needs and framework conditions are to be out-
lined with respect to standardization and security requirements for IoT
services and devices.
Major awards in the first quarter of 2018
eLearning Award 2018:

Brand Finance Global 500: Deutsche Telekom wins with
New Work Award 2018: Deutsche Telekom continues AV Test: the Digital Learning Booster
T-Systems was awarded second to be the most valuable Smart home platform Qivicon is Tested customer satisfaction:
place with its Magenta telecommunications brand singled out with the best rating Deutsche Telekom again
Lighthouse project in Europe for “Excellent protection” receives the TÜV quality certificate
JANUARY – MARCH
EMEA/MEE Partner World’s most KONSUMENT test winner:

Excellence Award 2018: ethical companies 2018: T-Mobile Austria takes the top
Bloomberg Gender
T-Systems is the SAP Deutsche Telekom is part spot in the magazine’s mobile
Equality Index (GEI):
service partner of the year of the most ethical companies consulting test (issue 3/2018)
T-Share listing honors Deutsche Telekom’s in the world
achievements in terms of equal rights

8 Interim Group management report
INTERIM GROUP MANAGEMENT REPORT
GROUP ORGANIZATION, STRATEGY, OUTLOOK

AND MANAGEMENT Under the current conditions, we expect to see ongoing stable eco-
nomic trends in the economies of our core markets. Despite a decline
With regard to our Group organization, strategy, and management, in the sentiment indicators at the start of the year, we do not consider
please refer to the explanations in the 2017 combined management re- this to be a sign that the upswing is coming to an end, since the indi-
port (2017 Annual Report, page 31 et seq.). The following change was cators remain at a very high level.
recorded as of the start of the year from the Group’s point of view:
OVERALL ECONOMIC RISKS
We assigned Vivento Customer Services GmbH, a provider of call The growth in the global economy and political developments over the
center services, to our Germany operating segment as of January 1, last few months have reduced the probability of recessionary trends.
2018; previously it was part of our Group Headquarters & Group Nevertheless, we cannot rule out economic and political risks in our
Services segment. Comparative figures have been adjusted retro markets. The main risk to global trade at present is increasing protec-
spectively. tionism. Furthermore, geopolitical crises could also have a negative
impact on the economies of the countries in which we operate.
For more information, please refer to the disclosures under segment
reporting in the interim consolidated financial statements, pages 44 REGULATION
and 45. Federal Network Agency decision on StreamOn. On December 15,
2017, the Federal Network Agency prohibited elements of the Magenta
Mobil StreamOn add-on option. According to the Federal Network
Agency, two aspects of this option breached the EU Regulation on net
THE ECONOMIC ENVIRONMENT neutrality and roaming. The ruling stipulates that we must transmit all
StreamOn data traffic at the maximum available bandwidth and that
This section provides additional information on and explains recent this also cannot be deducted from the included data volume contingent
changes to the economic situation as described in the combined when roaming within the EU. However, we believe that our service com-
management report for the 2017 financial year, focusing on macro plies with EU law. As such, we have filed an appeal against the ruling
economic developments in the first three months of 2018, the outlook, and are seeking legal remedy with the Cologne Administrative Court.
the currently prevailing economic risks, the telecommunications market, We continue to offer StreamOn in unchanged form during the summary
and the regulatory environment. The overall economic outlook is sub- proceedings.
ject to the precondition that there are no major unexpected occurrences
in the forecast period. Federal Network Agency decision on bitstream charges. On March 8,
2018, we received the Federal Network Agency’s final decision on our
MACROECONOMIC DEVELOPMENT rate application dated September 21, 2017. The application relates
The global economy continued on its growth course in the first three to the rates we can charge to wholesale customers for access to our
months of 2018. In its revised forecast of April 2018, the International broadband lines for “layer 2 bitstream access.” In its final decision,
Monetary Fund (IMF) expects global gross domestic product (GDP) to the Federal Network Agency confirmed its preliminary decision from
grow by 3.9 percent in 2018 and 2019, compared with 3.8 percent in December of last year and approved the majority of rates at the current
2017. Growth rates in the economies of our core markets also remained levels. We had requested an increase in the monthly rate as part of con-
robust. tingent models. As per the preliminary decision, this application was
not approved in the final decision.

Interim Group management report 9
AWARDING OF SPECTRUM
The table below provides an overview of the main spectrum awards
such as auctions as well as license extensions in Germany and at our
international subsidiaries. It also indicates spectrum to be awarded in
the near future in various countries.
Main spectrum awards
Start of award End of award Spectrum

procedure procedure Frequency ranges (MHz) Award process acquired (MHz)
Albania Q2 2018 Q3 2018 800 Sealed bid a or auction tbd
Germany Q4 2018 Q1 2019 2,000 / 3,400 ‒ 3,800 Auction (SMRA b), expected tbd
Greece Q3 2019 Q4 2019 3,400 ‒ 3,800 tbd tbd
Croatia Q3 2018 Q4 2018 2,100 tbd tbd
Macedonia Q2 2018 Q4 2018 900 / 2,100 Extension of licenses, expected tbd
Netherlands Q3 2019 Q4 2019 700 /1,500 /2,100 Auction, details tbd tbd
Austria Q3 2018 Q4 2018 3,400 ‒ 3,800 Auction (CCA c), expected tbd
Austria Q3 2019 Q4 2019 700 / 1,500 /2,100 Auction, details tbd tbd
Poland Q3 2018 Q4 2018 3,700 ‒ 3,800 tbd tbd
Romania Q2 2018 Q4 2018 700 / 800 / 1,500 / 2,600 / 3,400 – 3,600 Auction, details tbd tbd
Slovakia Q2 2018 Q3 2018 1,800 Auction (SMRA b), expected tbd
Czech Republic Q4 2018 Q2 2019 700 / 3,400 ‒ 3,600 Auction, details tbd tbd
Hungary Q4 2018 Q1 2019 700 / 1,500 / 2,100 / 2,300 / 2,600 / 26,000 tbd tbd
United States Q4 2018 Q2 2019 24,000 / 28,000 tbd tbd
a Submissionof an individual bid in a sealed envelope, in some cases sequential, in several awards.
b Simultaneous electronic multi-round auction with ascending, parallel bids for all ranges.
c Combinatorial Clock Auction, three-stage, multi-round auction for spectrum from all frequency ranges.
DEVELOPMENT OF BUSINESS IN THE GROUP For a more detailed explanation of these remeasurement and reclassi-
fication effects, please refer to the section “Accounting policies” of the
RESULTS OF OPERATIONS OF THE GROUP interim consolidated financial statements, page 33 et seq.
The new accounting standards IFRS 15 “Revenue from Contracts with
Customers” and IFRS 9 “Financial Instruments” took effect as of Janu- NET REVENUE
ary 1, 2018. Prior-year figures were not adjusted. Application of these In the first quarter of 2018, we generated net revenue of EUR 17.9 bil-
standards did not have any material effect on the Group’s results of lion, which was down 3.9 percent or EUR 0.7 billion year-on-year. The
operations. main factor in this decline was the exchange rate effects from the trans-
lation of U.S. dollars into euros. Adjusted for these negative exchange
IFRS 15 introduces an amended model for determining and recognizing rate effects totaling EUR 1.2 billion, and for the slightly negative effects
revenue. The effects of the new regulations on our operating segments of changes in the composition of the Group, revenue actually increased
differ depending on the underlying business model and, for the most by EUR 0.5 billion or 3.1 percent.
part, neutralize each other. For example, in our Germany operating
segment – where the sale of subsidized handsets in combination with In our United Stated operating segment, revenue – adjusted for ex-
service contracts is still customary – the amortization of capitalized change rate effects – rose by a very positive 8.7 percent. This increase
contract assets reduces revenue to a minor extent. In our United States was due primarily to higher service revenues from the ongoing growth
operating segment – where customers are predominantly offered payment- in customer numbers triggered by T-Mobile US’ successful Un-carrier
by-installment models or leased models – the capitalization of customer initiatives and to the success of the MetroPCS brand. Terminal equip-
acquisition costs and their distribution over the average customer reten- ment revenue also increased, in part due to higher average revenues
tion period have a slightly positive impact on EBITDA. per device sold. In our German home market, revenue contracted by
a slight 1.3 percent. Adjusted for the effects of IFRS 15, total reve-
nue was stable year-on-year, with revenue from mobile business rising
marginally. Higher IT and broadband revenues had a positive impact

on fixed-network revenue. However, this effect was not quite sufficient ness, particularly for international corporate customers. By contrast,
to fully offset the slight decrease in fixed-network revenue compared revenue from both telecommunications business and our strategic
with 2017. At our Europe operating segment, revenue was up by a growth areas was positive. Revenue generated by our Group Develop-
slight 1.1 percent year-on-year, but was on par with the prior-year pe- ment operating segment decreased by 11.3 percent year-on-year in the
riod when adjusted for exchange rate effects. Positive factors were first quarter of 2018, a decline largely attributable to forgone revenue
substantial revenue growth for B2B/ICT business customer operations following the deconsolidation of Strato as of March 31, 2017. Revenue
and a similar trend in mobile business. Negative factors included in- was down marginally at T-Mobile Netherlands, in part due to lower EU
tense competition in telecommunications markets, lower EU roaming roaming charges and national termination rates.
charges and an overall decline in fixed-network revenue. Declines in
wholesale business offset the positive revenue contribution of TV and For detailed information on revenue development in our segments,
broadband business. In the Systems Solutions operating segment, rev- please refer to the section “Development of business in the operating
enue decreased by 2.3 percent compared with the prior-year period. segments,” page 15 et seq.
This was mainly the result of lower revenue from traditional IT busi-
Contribution of the segments to net revenue

millions of €
Q1 2018 Q1 2017 Change Change % FY 2017

NET REVENUE 17,924 18,646 (722) (3.9) 74,947
Germany a 5,325 5,397 (72) (1.3) 21,931
United States 8,455 8,982 (527) (5.9) 35,736
Europe 2,811 2,781 30 1.1 11,589
Systems Solutions 1,665 1,704 (39) (2.3) 6,918
Group Development 528 595 (67) (11.3) 2,263
Group Headquarters & Group Services a 651 735 (84) (11.4) 2,935
Intersegment revenue (1,511) (1,547) 36 2.3 (6,425)
a We
assigned Vivento Customer Services GmbH, a provider of call center services, to our Germany operating segment as of January 1, 2018; previously it was part of our Group
Headquarters & Group Services segment. Comparative figures have been adjusted retrospectively. For more information, please refer to the section “Group organization, strategy,
and management,” page 8, and the disclosures under segment reporting in the interim consolidated financial statements, pages 44 and 45.
Breakdown of revenue by regions Contribution of the segments to net revenue a

% %
0.8 2.1 0.3

Other countries Group Development Group Headquarters &
Group Services
18.5 7.4
Europe Systems Solutions
(excluding Germany)
33.4 15.2 27.8
Germany Europe Germany
47.3 47.2
North America United States
a
For more information on net revenue, please refer to the disclosures under segment
reporting in the interim consolidated financial statements, pages 44 and 45.

At 47.2 percent, our United States operating segment again provided as to the erosion of margins in traditional IT business. In our Group
the largest contribution to net revenue of the Group. This was a de- Development operating segment, adjusted EBITDA declined, mainly
crease of 1.0 percentage point compared with the prior-year period and due to forgone earnings following the deconsolidation of Strato in the
was mainly due to negative exchange rate effects from the translation of first quarter of 2017.
U.S. dollars into euros. As a result, the proportion of net revenue gener-
ated outside Germany decreased from 67.3 percent to 66.6 percent. EBITDA decreased by EUR 0.7 billion year-on-year to EUR 5.3 billion,
with special factors – which were negative on balance – decreasing by
EBITDA, ADJUSTED EBITDA EUR 0.7 billion to EUR ‒0.3 billion. This decline was largely attributable
Adjusted for special factors, first-quarter adjusted EBITDA was stable to the fact that the figure for the prior-year period contained income
year-on-year, coming in at EUR 5.5 billion; negative exchange rate of EUR 0.5 billion from the deconsolidation of Strato, which was sold
effects of EUR 0.3 billion, particularly from the translation of U.S. dollars on March 31, 2017. In addition, expenses incurred in connection with
into euros, were a major negative factor in this result. Excluding such staff-related measures and non-staff-related restructuring expenses
effects, adjusted EBITDA actually rose by EUR 0.3 billion or 6.6 per- amounted to EUR 0.3 billion, EUR 0.2 billion higher than the expenses
cent. Adjusted for exchange rate effects, adjusted EBITDA at our reported in the prior-year period.
United Stated operating segment was markedly positive, especially
due to the revenue growth. Our Germany and Europe operating seg- For detailed information on the development of EBITDA/adjusted EBITDA
ments also performed well. Adjusted EBITDA declined at our Systems in our segments, please refer to the section “Development of business
Solutions operating segment, primarily due to increased costs incurred in the operating segments,” page 15 et seq.
to expand the strategic growth areas in digitalization business as well
Contribution of the segments to adjusted Group EBITDA

millions of €

EBITDA (ADJUSTED FOR SPECIAL FACTORS) IN THE GROUP 5,549 5,550 (1) 0.0 22,230
Germany a 2,082 2,055 27 1.3 8,412
United States 2,332 2,386 (54) (2.3) 9,316
Europe 911 889 22 2.5 3,749
Systems Solutions 57 96 (39) (40.6) 509
Group Development 231 238 (7) (2.9) 915
Group Headquarters & Group Services a (70) (113) 43 38.1 (661)
Reconciliation 5 (1) 6 n. a. (11)
a We
assigned Vivento Customer Services GmbH, a provider of call center services, to our Germany operating segment as of January 1, 2018; previously it was part of our Group
Headquarters & Group Services segment. Comparative figures have been adjusted retrospectively. For more information, please refer to the section “Group organization, strategy,
and management,” page 8, and the disclosures under segment reporting in the interim consolidated financial statements, pages 44 and 45.

EBIT EMPLOYEES
Group EBIT stood at EUR 2.2 billion, down EUR 0.6 billion against the
prior-year period. This change is mainly due to the effects described Number of employees (at the reporting date)
under EBITDA. At EUR 3.1 billion, depreciation, amortization and im-
Mar. 31, 2018 Dec. 31, 2017 Change %
pairment losses were slightly lower than in the prior-year period.
NUMBER OF EMPLOYEES
IN THE GROUP 216,926 217,349 (0.2)
PROFIT/LOSS BEFORE INCOME TAXES Of which: civil servants
Profit before income taxes increased by EUR 1.0 billion to EUR 1.8 bil- (in Germany,
with an active
lion compared with the first quarter of 2017. This substantial increase service
was attributable to the decrease of EUR 1.6 billion in the loss from relationship) 15,077 15,482 (2.6)
Germany a 64,695 64,798 (0.2)
financial activities to EUR 0.4 billion. This decrease was due, in partic-
United States 45,119 45,888 (1.7)
ular, to the EUR 0.7 billion impairment of our financial stake in BT that Europe 47,986 47,421 1.2
was recognized in profit or loss in the prior-year period. In March 2018, Systems Solutions 37,963 37,924 0.1
we transferred our financial stake in BT to Deutsche Telekom Trust Group Development 1,971 1,967 0.2
e.V., where it will be used as plan assets to cover our pension obliga- Group Headquarters &
Group Services a 19,192 19,351 (0.8)
tions. With effect from the first quarter of 2018, changes in the value
of our stake will be recognized directly in equity (other comprehensive a Weassigned Vivento Customer Services GmbH, a provider of call center services, to our
income) and no longer as profit/loss from financial activities in the in- Germany operating segment as of January 1, 2018; previously it was part of our Group
Headquarters & Group Services segment. Comparative figures have been adjusted
come statement. Nor will future dividend income from the stake in BT retrospectively. For more information, please refer to the section “Group organization,
be recognized in profit/loss from financial activities. Finance costs de- strategy, and management,” page 8, and the disclosures under segment reporting in the
interim consolidated financial statements, pages 44 and 45.
creased by EUR 0.2 billion. In the first quarter of 2018, negative remea-
surement effects from the exercise and measurement of embedded
derivatives at T-Mobile US – mainly relating to the early repayment of ex-
ternal financial liabilities – increased the loss from financial activities by The Group’s headcount decreased by 0.2 percent compared with the
EUR 0.1 billion. In the prior-year period, this negative effect on loss from end of 2017. In our Germany operating segment, the total number of
financial activities totaled EUR 0.6 billion. employees had decreased by 0.2 percent at the end of the first quarter
of 2018 as a result of efficiency enhancement measures, fewer hires in
NET PROFIT the operational units, and the take-up of socially responsible instru-
Net profit increased year-on-year by EUR 0.2 billion to EUR 1.0 billion. ments. The total number of employees in our United States operating
Tax expense came to EUR 0.5 billion in the first quarter of 2018, up segment had decreased by 1.7 percent at March 31, 2018, compared to
EUR 0.6 billion year-on-year. For further information, please refer to the December 31, 2017, largely due to a decrease in customer acquisition
interim consolidated financial statements, page 43. Profit attributable employees. In our Europe operating segment, staff levels increased by
to non-controlling interests increased by EUR 0.2 billion year-on-year, 1.2 percent compared with the end of the prior year. Our national com-
mainly in our United States operating segment. panies in Croatia, Hungary, and Romania contributed to this growth.
The number of employees in our Systems Solutions operating segment
increased slightly compared with the end of 2017, driven mainly by new
hires in the area of digitalization. In our Group Development operating
segment, the number of employees largely remained stable. The head-
count in the Group Headquarters & Group Services segment was down
0.8 percent compared with the end of 2017. The decline in staff levels
caused by ongoing staff restructuring measures at Vivento was partially
offset by the addition of employees at the Technology and Innovation
unit.

FINANCIAL POSITION OF THE GROUP

The new accounting standards IFRS 15 “Revenue from Contracts with
Customers” and IFRS 9 “Financial Instruments” took effect as of Janu-
ary 1, 2018. Prior-year figures were not adjusted. IFRS 15 has a material
impact on the presentation of the Company’s results of operations and
its financial position. The main effects are explained where the changes
in the relevant items of the statement of financial position are discussed
and in the section “Accounting policies” in the interim consolidated
financial statements, page 33 et seq.
Structure of the consolidated statement of financial position

millions of €
ASSETS LIABILITIES AND SHAREHOLDERS’ EQUITY
141,334 141,334
35 % Non-current financial liabilities

Intangible assets 45 % 138,025 138,025
35 % 6% Current financial liabilities

45 % 6%
5% Provisions for pensions and other employee benefits
6% 8% Deferred tax liabilities
Property, plant and equipment 33 % 4%
5% 10 % Trade and other payables
7%
34 % 11 % Other liabilities
Trade and other receivables 7 %
7% 32 % 30 % Shareholders’ equity
Other assets 15 %
14 %
Dec. 31, 2017 Mar. 31, 2018 Mar. 31, 2018 Dec. 31, 2017
Total assets amounted to EUR 138.0 billion, down by EUR 3.3 billion amount of EUR 1.7 billion and capitalized contract costs of EUR 1.3 bil-
against December 31, 2017. lion increased other assets. These relate to the remeasurement and
reclassification effects recognized directly in equity following the man-
The total carrying amounts of intangible assets and property, plant datory application of IFRS 15 as of January 1, 2018.
and equipment were EUR 1.2 billion lower year-on-year. Capital ex-
penditure on our networks, especially in upgrading the network in There was only a slight increase of EUR 0.2 billion in current and non-
our United States operating segment and building out broadband/ current financial liabilities compared with year-end 2017. This was pri
optical fiber in our Germany operating segment, increased the carrying marily due to the issue of new bonds at T-Mobile US in the amount of
amounts by EUR 3.2 billion. Changes in the composition of the Group EUR 2.0 billion (translated into euros) and to an increase of EUR 1.0 bil-
in the amount of EUR 0.4 billion – mainly from the acquisition of online lion in liabilities to banks. The early repayment of T-Mobile US’ debt
TV provider Layer3 TV in the United States operating segment – also instruments in the amount of EUR 0.8 billion (translated into euros) and
increased the carrying amounts. Depreciation, amortization and im- regular repayments of bond liabilities of EUR 1.1 billion had an offset-
pairment losses of EUR 3.1 billion and negative exchange rate effects ting effect. The net change of EUR 0.8 billion in commercial paper also
of EUR 1.4 billion, especially from the translation of U.S. dollars into decreased the carrying amount of the financial liabilities. Provisions for
euros, lowered the carrying amounts. Compared with December 31, pensions and other employee benefits decreased by EUR 3.1 billion
2017, trade and other receivables decreased by EUR 0.6 billion, pri- compared with December 31, 2017, mainly due to the transfer of our
marily due to a reduction in the volume of receivables, especially in the stake in BT and the associated netting of these plan assets with the
United States operating segment. Exchange rate effects, primarily from defined benefit obligations. Trade and other payables decreased by
the translation from U.S. dollars into euros, also reduced the carrying EUR 1.8 billion. This decline was attributable to the reduction in liabil-
amounts. Under other assets, current and non-current other financial ities, especially at the United States, Europe, and Germany operating
assets were reduced in particular. On March 23, 2018, we transferred segments, and to the effects of the translation of U.S. dollars into euros.
our 12 percent financial stake in BT, which is worth EUR 3.1 billion, to Other liabilities rose due to an increase of EUR 2.4 billion in current
the Group’s own trust, Deutsche Telekom Trust e.V., where it will serve and non-current contract liabilities. The contract liabilities relate to the
as plan assets to cover pension entitlements. The impairment loss on remeasurement and reclassification effects recognized directly in equity
the exchange-traded stake in BT – which was recognized in other com- following the mandatory application of IFRS 15 as of January 1, 2018. At
prehensive income for the period from January 1, 2018 until the date of the same time, current and non-current other liabilities decreased by a
transfer – reduced the carrying amount by EUR 0.7 billion. Exchange comparable amount on first-time application of IFRS 15.
rate effects, primarily from the translation from U.S. dollars into euros,
also reduced the carrying amounts. Capitalized contract assets in the

Shareholders’ equity increased from EUR 42.5 billion as of Decem- for the T-Mobile US shares acquired by Deutsche Telekom in the first
ber 31, 2017 to EUR 43.7 billion. Profit after taxes of EUR 1.3 billion quarter of 2018. Two other factors reduced shareholders’ equity: the
had an increasing effect. The transition to IFRS 9 and IFRS 15 had a impairment loss of EUR 0.7 billion on the exchange-traded stake in BT
cumulative effect recognized directly in equity as of January 1, 2018, – which was recognized in other comprehensive income for the period
namely an increase of EUR 1.9 billion in retained earnings that includ- from January 1 through March 23, 2018 – and the currency translation
ed shares attributable to non-controlling interests. By contrast, trans- effects in the amount of EUR 0.6 billion recognized directly in equity.
actions with owners decreased shareholders’ equity by EUR 0.7 billion.
These transactions included EUR 0.5 billion for the share buy-back pro- For further information on the statement of financial position, please
gram launched by T-Mobile US in December 2017 and EUR 0.2 billion refer to the interim consolidated financial statements, page 40 et seq.
Changes in net debt

millions of €
50,791 (1,382)
156 (623) 554 50,455
255
162
542
Net debt at Free cash flow Share Acquisition of Acquisition of Finance Exchange rate Other effects Net debt at
Jan. 1, 2018 (before dividend buy-back T-Mobile US Layer3 TV leases effects Mar. 31, 2018
payments and program shares by
spectrum investment) at T-Mobile US Deutsche Telekom AG
Other effects of EUR 0.5 billion include, among other factors, financ-
ing options under which the payments for trade payables become due
at a later point in time by involving banks in the process, and liabilities
for the acquisition of broadcasting rights. For more information on net
debt, please refer to the disclosures on the reconciliation of alternative
performance measures in the section “Additional information,” page 59
et seq.
Free cash flow (before dividend payments and spectrum investment)

millions of €

CASH GENERATED FROM OPERATIONS 4,805 5,280 (475) (9.0) 19,706
Interest received (paid) (509) (926) 417 45.0 (2,509)
NET CASH FROM OPERATING ACTIVITIES 4,297 4,355 (58) (1.3) 17,196
Cash outflows for investments in intangible assets (excluding goodwill
and before spectrum investment) and property, plant and equipment
(CASH CAPEX) (3,076) (3,245) 169 5.2 (12,099)
Proceeds from disposal of intangible assets (excluding goodwill) and
property, plant and equipment 161 118 43 36.4 400
FREE CASH FLOW
(BEFORE DIVIDEND PAYMENTS AND SPECTRUM INVESTMENT) 1,382 1,228 154 12.5 5,497

Free cash flow. Free cash flow in the Group before dividend payments The EUR 0.2 billion decrease in cash capex compared with the prior-
and spectrum investment increased by EUR 0.2 billion year-on-year year period related primarily to the United States operating segment,
to EUR 1.4 billion. Net cash from operating activities decreased by whereas cash capex was EUR 0.1 billion higher in the Germany oper-
EUR 0.1 billion. At the same time, cash outflows for investments in in- ating segment. Adjusted for exchange rate effects, cash capex would
tangible assets (excluding goodwill and before spectrum investment) have been on par with the prior-year period. In each case, the cash
and property, plant and equipment decreased by EUR 0.2 billion. outflows were for investments in network build-out and network mod-
ernization.
Net cash from operating activities declined by EUR 0.1 billion year-on-
year to EUR 4.3 billion. Exchange rate effects weighed on the continu- For further information on the statement of cash flows, please refer to
ing positive business trend in the United States operating segment. the interim consolidated financial statements, pages 43 and 44.
In addition, positive effects from factoring agreements – in particular
in the Germany and Systems Solutions operating segments – on net
cash from operating activities were EUR 0.1 billion lower than in the
prior-year period. In addition to a dividend payment of EUR 0.1 billion
from BT (which was also included in the prior-year period), dividend
payments totaling EUR 0.1 billion from Scout Lux and Toll Collect had
a positive effect on net cash from operating activities. A EUR 0.4 billion
decrease in net interest payments enhanced net cash from operating
activities.
DEVELOPMENT OF BUSINESS
IN THE OPERATING SEGMENTS
GERMANY
For information on changes in the organizational structure, please refer
to the section “Group organization, strategy, and management,” page 8,
and the disclosures under segment reporting in the interim consolidat-
ed financial statements, pages 44 and 45.
CUSTOMER DEVELOPMENT
thousands
Change Change
Mar. 31, 2018/ Mar. 31, 2018/
Dec. 31, 2017 Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 % Mar. 31, 2017 %
Mobile customers 42,730 43,125 (0.9) 42,114 1.5
Contract customers 25,102 25,887 (3.0) 25,270 (0.7)
Prepay customers 17,628 17,238 2.3 16,844 4.7
Fixed-network lines a 19,149 19,239 (0.5) 19,648 (2.5)
Of which: retail IP-based 12,843 11,996 7.1 9,801 31.0
Retail broadband lines b 13,357 13,209 1.1 12,989 2.8
Of which: optical fiber 6,232 5,803 7.4 4,693 32.8
Television (IPTV, satellite) 3,193 3,139 1.7 2,955 8.1
Unbundled local loop lines (ULLs) 5,846 6,138 (4.8) 6,952 (15.9)
Wholesale broadband lines 5,993 5,638 6.3 4,701 27.5
Of which: optical fiber 4,135 3,783 9.3 2,887 43.2
a The baseline as of January 1, 2018 increased (by 62 thousand) due to the inclusion of new products launched in the Business Customer portfolio. Prior-year comparatives were not adjusted.
b The baseline as of January 1, 2018 increased (by 53 thousand) due to the inclusion of new products launched in the Business Customer portfolio. Prior-year comparatives were not adjusted.

Total Fixed network

In Germany we continue to be market leader both in terms of fixed- Due to the persistently challenging development in the fixed-network
network and mobile revenues. This success is attributable to our market, primarily owing to aggressive pricing offers of competitors, we
high-performance networks. We offer best customer experience with are pursuing new paths in marketing, focusing on integrated offers and
multi-award-winning network quality – in the fixed network and in on TV and fiber-optic lines. For example, if we take into account the
mobile communications – and with a broad product portfolio. So new products launched for business customers since the start of 2018,
far, we have won 3.8 million customers for our integrated product, the number of broadband lines in our portfolio rose by 148 thousand
MagentaEins. between year-end 2017 and the end of the first quarter of 2018, while
the number of TV customers increased by 54 thousand. The number of
Compared with year-end 2017, we lost a total of 395 thousand mobile lines in our traditional fixed-network portfolio decreased by 152 thou-
communications customers in the first quarter of 2018, primarily due to sand.
seasonal business fluctuations at one of our service providers. High de-
mand for mobile rate plans with included data volumes resulted in an in- Our MagentaZuhause rate plans offer a comprehensive product port
crease in the number of branded contract customers under the Telekom folio for the fixed network based on IP technology and rate plan-specific
and congstar brands. We also recorded growth in the number of prepay bandwidths. MagentaZuhause Hybrid bundles fixed-network and mobile
customers. technology in a single router. To date, 386 thousand customers, primarily
based in rural areas, have selected this innovative product.
By the end of the first quarter of 2018, we had already migrated 18.5 mil
lion retail and wholesale lines to IP, which corresponds to a migration By the end of the first quarter of 2018, we had also connected a total of
rate of 73 percent. 228 thousand apartments to our network through our partnerships in
the housing sector.
We continued to see strong demand for our fiber-optic products. As of
the end of the first quarter of 2018, the number of lines had increased Wholesale
to 10.4 million overall. In other words, we connected 781 thousand At the end of the first quarter of 2018, fiber-optic lines accounted for
lines to our fiber-optic network in Germany in the first three months of 34.9 percent of all lines – 2.8 percentage points higher than at the end
2018. With the progress in fiber-optic roll-out and innovative vectoring of 2017. This accelerated growth was driven largely by high demand
technology, we also successfully drove forward the marketing of higher for our contingent model. The number of unbundled local loop lines
bandwidths. decreased by 292 thousand or 4.8 percent compared with the end of
the prior year. This is due first to the move to higher-quality fiber-optic
Mobile communications wholesale lines, and second to retail customers switching to cable op-
In the first quarter of 2018, we won a total of 76 thousand branded con- erators. In addition, wholesale customers are migrating their retail cus-
tract customers under the Telekom and congstar brands and at Telekom tomers to their own fiber-optic lines. The total number of lines stood at
Deutschland Multibrand GmbH. The number of mobile contract customers 11.8 million by the end of the first quarter of 2018.
with resellers (service providers) decreased primarily due to seasonal
business fluctuations at one of our service providers. The number of
prepay customers increased by 390 thousand.
DEVELOPMENT OF OPERATIONS
millions of €

TOTAL REVENUE 5,325 5,397 (72) (1.3) 21,931
Consumers 2,813 2,918 (105) (3.6) 11,797
Business Customers a 1,491 1,465 26 1.8 6,017
Wholesale 932 926 6 0.6 3,747
Other a 90 88 2 2.3 370
Profit from operations (EBIT) 935 1,071 (136) (12.7) 4,276
EBIT margin % 17.6 19.8 19.5
Depreciation, amortization and impairment losses (980) (935) (45) (4.8) (3,828)
EBITDA 1,915 2,006 (91) (4.5) 8,104
Special factors affecting EBITDA (167) (49) (118) n. a. (308)
EBITDA (ADJUSTED FOR SPECIAL FACTORS) 2,082 2,055 27 1.3 8,412
CASH CAPEX (1,145) (1,005) (140) (13.9) (4,214)
a As of July 1, 2017, a share of revenue previously recognized under “Other” was assigned to Business Customers on account of a reorganization. Prior-year comparatives were not adjusted.

Total revenue Wholesale revenue in the first quarter of 2018 was 0.6 percent higher
Total revenue decreased by 1.3 percent compared with the prior-year than in the comparable prior-year period, thanks primarily to higher
quarter. Adjusted for the effects of the IFRS 15 accounting standard, revenues generated with our contingent model. Without the effects of
the application of which is mandatory from January 1, 2018, total IFRS 15, revenue growth would have been even stronger.
revenue developed on a par with the prior year. In mobile business,
revenue declined by 3.3 percent year-on-year; excluding the effects EBITDA, adjusted EBITDA
of IFRS 15, revenue increased slightly compared with the prior-year EBITDA amounted to EUR 1.9 billion in the first quarter of 2018, a
period. Higher IT and broadband revenues had a positive impact on decrease of 4.5 percent against the prior-year quarter, due mainly to
fixed-network revenue. However, this was not quite sufficient to com- higher special factors for expenses in connection with our staff restruc-
pletely offset the decrease of 0.9 percent in fixed-network revenue turing. EBITDA adjusted for special factors totaled EUR 2.1 billion in the
compared with 2017. reporting quarter, up 1.3 percent compared with the same period of last
year. The adjusted EBITDA margin was up from 38.1 percent in the first
Revenue from Consumers declined by 3.6 percent year-on-year; quarter of 2017 to 39.1 percent in the reporting period.
adjusted for the effects of IFRS 15, the decline was only marginal.
Volume-related revenue decreases continued to affect the traditional EBIT
fixed-network business. By contrast, revenue from broadband busi- Profit from operations decreased by 12.7 percent year-on-year to
ness increased by 3.7 percent. EUR 0.9 billion. Depreciation, amortization and impairment losses
increased by 4.8 percent on account of sustained high investments
Revenue from Business Customers grew by 1.8 percent; this growth in our network infrastructure.
was even stronger once adjusted for the effects of IFRS 15. Mobile
revenues increased by 4.7 percent and IT revenues by 13.2 percent Cash capex
compared with the prior-year quarter. In the fixed network, by contrast, Cash capex increased year-on-year by 13.9 percent. As part of our inte-
a decline was recorded in traditional voice telephony, due largely to the grated network strategy, we again made significant investments in the
increasing number of customers moving to flat-rate plans. broadband and fiber-optic roll-out, our IP transformation, and our mobile
infrastructure.
UNITED STATES
thousands
Change Change
Mar. 31, 2018/ Mar. 31, 2018/
Dec. 31, 2017 Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 % Mar. 31, 2017 %
Mobile customers 74,040 72,585 2.0 72,597 2.0
Branded customers a 59,941 58,715 2.1 55,540 7.9
Branded postpaid a 39,065 38,047 2.7 35,341 10.5
Branded prepay a 20,876 20,668 1.0 20,199 3.4
Wholesale customers b 14,099 13,870 1.6 17,057 (17.3)
a
Due to changes in the consolidated group at the beginning of 2018, the number of branded postpaid customers increased by 13 thousand and the number of branded prepay customers
increased by 9 thousand.
b T-Mobile US believes current and future regulatory changes have made the Lifeline program offered by T-Mobile US’ wholesale partners uneconomical. T-Mobile US will continue to
support its wholesale partners offering the Lifeline program, but has excluded the Lifeline customers from the reported wholesale subscriber base resulting in the removal of 160 thou-
sand and 4,638 thousand reported wholesale customers as of the beginning of the third quarter of 2017 and the beginning of the second quarter of 2017, respectively.
At March 31, 2018, the United States operating segment (T-Mobile US) sive promotions during the first quarter of 2017, including T-Mobile US’
had 74.0 million customers compared to 72.6 million customers at De- launch of Un-carrier Next – All Unlimited with taxes and fees included,
cember 31, 2017. Net customer additions were 1.4 million for the first and increased competitive activity in the marketplace.
quarter of 2018 compared to 1.1 million net customer additions for the
first quarter of 2017 due to the factors described below. Branded prepay net customer additions were 199 thousand for the
first quarter of 2018, compared to 386 thousand branded prepay net
Branded customers. Branded postpaid net customer additions were customer additions for the first quarter of 2017. The decrease was due
1,005 thousand for the first quarter of 2018, compared to 914 thou- primarily to increased competitive activity in the marketplace and higher
sand branded postpaid net customer additions for the first quarter of deactivations from a growing customer base, partially offset by a higher
2017. The increase in branded postpaid net customer additions was impact from the optimization of T-Mobile US’ third-party distribution
primarily due to higher connected devices, the growing success of new channels in the prior period, which began in the fourth quarter of 2016,
segments such as T-Mobile for Business, continued growth in existing resulting in lower churn, and lower migrations to branded postpaid
and greenfield markets, along with record postpaid churn performance. plans.
These increases were partially offset by the impact from more aggres-

Wholesale customers. Wholesale net customer additions were 229 thou

sand for the first quarter of 2018, compared to wholesale net customer
deactivations of 158 thousand for the first quarter of 2017. The increase
was due primarily to lower customer deactivations driven by the removal
of Lifeline program customers, partially offset by lower machine-to-machine
(M2M) net customer additions.
millions of €

TOTAL REVENUE 8,455 8,982 (527) (5.9) 35,736
Profit from operations (EBIT) 1,137 1,003 134 13.4 5,930
EBIT margin % 13.4 11.2 16.6
Depreciation, amortization and impairment losses (1,223) (1,387) 164 11.8 (5,019)
EBITDA 2,360 2,390 (30) (1.3) 10,949
Special factors affecting EBITDA 28 4 24 n. a. 1,633
EBITDA (ADJUSTED FOR SPECIAL FACTORS) 2,332 2,386 (54) (2.3) 9,316
CASH CAPEX (1,143) (1,442) 299 20.7 (11,932)
Total revenue 2018, T-Mobile US expects additional expenses to be incurred in 2018,

Total revenue for the United States operating segment of EUR 8.5 bil- primarily related to T-Mobile US’ operations in Puerto Rico. T-Mobile US
lion in the first quarter of 2018 decreased by 5.9 percent compared to continues to assess the damage and work with its insurance carriers to
EUR 9.0 billion in the first quarter of 2017. In U.S. dollars, T-Mobile US’ submit claims for property damage and business interruption.
total revenues increased by 8.7 percent year-on-year due primarily
to growth in service revenue from increases in T-Mobile US’ average EBITDA in the first quarter of 2018 included special factors of EUR 28 mil-
branded customer base from the growing success of new segments lion compared to special factors of EUR 4 million in the first quarter of
such as T-Mobile for Business, continued growth in existing and 2017. Overall, EBITDA in euros remained consistent at EUR 2.4 billion in
greenfield markets, record low churn, higher connected devices and the first quarter of 2018 and in the first quarter of 2017. In U.S. dollars,
the success of the MetroPCS brand. Additionally, equipment revenues EBITDA increased to USD 2.9 billion in the first quarter of 2018, com-
increased due primarily to a higher average revenue per device sold, a pared to USD 2.5 billion in the first quarter of 2017, due to the factors
positive impact from the obligatory first time adoption of IFRS 15 as of described above.
January 1, 2018 and proceeds from the liquidation of returned customer
handsets, partially offset by a decrease in the number of devices sold, EBIT
excluding purchased lease devices, lower lease revenues and a de- EBIT increased to EUR 1.1 billion in the first quarter of 2018, com-
crease from lower volumes of customer purchases of leased devices at pared to EUR 1.0 billion in the first quarter of 2017. In U.S. dollars,
the end of the lease term. EBIT increased by 31 percent during the same period primarily driven
by higher EBITDA. In U.S. dollars, depreciation remained stable on a
EBITDA, adjusted EBITDA prior-year basis.
In euros, adjusted EBITDA decreased by 2.3 percent to EUR 2.3 bil-
lion in the first quarter of 2018, compared to EUR 2.4 billion in the first Cash capex
quarter of 2017. Adjusted EBITDA margin increased to 27.6 percent in Cash capex decreased to EUR 1.1 billion in the first quarter of 2018,
the first quarter of 2018, compared to 26.6 percent in the first quarter compared to EUR 1.4 billion in the first quarter of 2017. In U.S. dollars,
of 2017. In U.S. dollars, adjusted EBITDA increased by 12.8 percent cash capex decreased to USD 1.4 billion, compared to USD 1.5 billion
during the same period. Adjusted EBITDA increased due primarily to during the same period of the prior year due primarily to costs from
an increase in branded postpaid and prepay service revenues as dis- T-Mobile US’ build-out of 700 MHz spectrum in the first quarter of 2017,
cussed above, lower net losses on equipment sales, the positive impact which was finalized in 2017.
from adoption of IFRS 15 and the positive net impact of USD 58 million
in connection with the hurricanes, which included USD 94 million in
reimbursements received from insurance carriers in the first quarter of
2018. These increases were partially offset by higher employee-related
costs, costs related to outsourced functions and managed
services, commissions, and higher costs associated with network
expansion. In the first quarter of 2018 T-Mobile US continued to expe-
rience losses related to hurricanes, primarily from incremental costs
to maintain T-Mobile US’ operations in Puerto Rico. As of March 31,

EUROPE
thousands
Change Change
Mar. 31, 2018/ Mar. 31, 2018/
Dec. 31, 2017 Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 % Mar. 31, 2017 %
EUROPE, TOTAL Mobile customers 49,254 48,842 0.8 47,348 4.0
Contract customers 25,686 25,483 0.8 24,482 4.9
Prepay customers 23,567 23,359 0.9 22,866 3.1
Fixed-network lines 8,409 8,439 (0.4) 8,486 (0.9)
Of which: IP-based 5,947 5,734 3.7 5,190 14.6
Retail broadband lines a 5,821 5,647 3.1 5,444 6.9
Television (IPTV, satellite, cable) 4,271 4,244 0.6 4,100 4.2
Unbundled local loop lines
(ULLs)/wholesale PSTN 2,270 2,265 0.2 2,269 ‒
Wholesale broadband lines 389 389 ‒ 376 3.5
GREECE Mobile customers 8,053 7,981 0.9 7,733 4.1
Fixed-network lines 2,551 2,547 0.2 2,547 0.2
Broadband lines 1,901 1,843 3.1 1,708 11.3
ROMANIA Mobile customers 5,236 5,258 (0.4) 5,428 (3.5)
Fixed-network lines 1,823 1,865 (2.3) 1,937 (5.9)
Broadband lines 1,210 1,182 2.4 1,186 2.0
HUNGARY Mobile customers 5,298 5,293 0.1 5,304 (0.1)
Fixed-network lines 1,634 1,632 0.1 1,630 0.2
Broadband lines 1,118 1,105 1.2 1,053 6.2
POLAND Mobile customers 10,509 10,454 0.5 10,229 2.7
Fixed-network lines 27 32 (15.6) 33 (18.2)
Broadband lines 13 15 (13.3) 20 (35.0)
CZECH REPUBLIC Mobile customers 6,156 6,176 (0.3) 6,097 1.0
Fixed-network lines 220 197 11.7 143 53.8
Broadband lines 180 167 7.8 136 32.4
CROATIA Mobile customers 2,229 2,244 (0.7) 2,210 0.9
Broadband lines 832 783 6.3 795 4.7
SLOVAKIA Mobile customers 2,282 2,243 1.7 2,230 2.3
Broadband lines 681 669 1.8 649 4.9
AUSTRIA Mobile customers 6,071 5,702 6.5 4,713 28.8
OTHER b Mobile customers 3,419 3,490 (2.0) 3,404 0.4
Broadband lines 275 274 0.4 276 (0.4)
a Retailbroadband lines were reclassified as of January 1, 2018. This category now covers all lines based on broadband technology irrespective of which service is used by the customer.
Prior-year comparatives were not adjusted.
b “Other”: national companies of Albania, Macedonia, and Montenegro, as well as the lines of the GTS Central Europe group in Romania.
Total
The market environment in Europe remained intensely competitive in
the first quarter of 2018. We rose to the challenge, recording substantial
growth of 9.1 percent in the number of FMC customers (fixed-mobile
convergence) in the first quarter of 2018, thanks in part to our conver-
gent product portfolio, MagentaOne. TV and broadband business also
continued to develop as a consistent revenue driver. Our mobile busi-
ness is growing overall, with increases reported in both the number of
high-value contract customers and the number of prepay customers
compared with the end of the prior year. In addition, we continued to
systematically roll out state-of-the-art fiber-optic-based lines (FTTH,
FTTB, and FTTC). As part of our integrated network strategy, we also in-
creased the number of IP lines – primarily thanks to the migration from
traditional PSTN lines to IP technology.

Mobile communications The number of retail broadband lines increased by 3.1 percent to a total
The number of mobile customers totaled 49.3 million at the end of the of 5.8 million, a portion of which was due to the reclassification of retail
first quarter of 2018, up slightly by 0.8 percent or 412 thousand customers broadband lines as of January 2018. Fiber-optic-based lines accounted
compared with the end of 2017. The growth trend among contract cus- for the majority of net customer additions, growing considerably faster
tomers continued unabated, with the customer base increasing slightly than DSL business. Romania, Hungary, and Croatia were the main con-
by 0.8 percent or 203 thousand customers due mainly to the positive tributors to this growth. We continued to increase our overall fiber-optic
customer development at our national companies in Poland, Romania, coverage, with our national companies reaching around 33 percent of
and the Czech Republic. The total share of contract customers thus re- households as of March 31, 2018. This success bears out our continued
mained largely stable at 52.2 percent as of March 31, 2018. In addition investment in forward-looking, fiber-optic-based technologies.
to our innovative services/rate plans, thanks to our integrated network
strategy our customers also benefited from greater coverage with fast Consistent growth in IP-based lines as a percentage of all fixed-net-
mobile broadband. As of March 31, 2018, we already covered 95 per- work lines confirms that we are making good progress: At the end of
cent of the population in the countries of our operating segment with March 2018, this share amounted to 70.7 percent. The total number of
LTE, reaching around 107 million people in total. The importance of fixed-network lines in our Europe operating segment decreased only
making high bandwidths available is evident in the sharp rise seen in slightly overall compared with the end of 2017 to 8.4 million at the end
data consumption, driven by huge volumes of data traffic, generated of the reporting period.
for example by the use of video streaming services. The share of all
mobile devices sold accounted for by smartphones remained at a high FMC – Fixed-mobile convergence
level. In prepay business, the signs are also pointing towards growth: Our convergent product portfolio, MagentaOne, is highly popular in all
The increases reported in the last two quarters continued in the first of our integrated countries. As of March 31, 2018, we had won some
quarter of 2018 with a rise of 0.9 percent or 208 thousand customers. 2.4 million FMC customers in the Consumers portfolio, an increase of
Our national companies in Austria, Greece, and Slovakia contributed to 9.1 percent. This growth even reaches 51.1 percent when compared with
this growth. the first quarter of the prior year. Our national companies in Greece,
Hungary, and Romania were the main drivers of this trend. We have
Fixed network also been increasingly successful in marketing our MagentaOne Busi-
In the first quarter of 2018, our TV and entertainment service grew by ness product to business customers.
0.6 percent compared with the end of 2017 and by 4.2 percent year-on-
year. Of the 171 thousand net additions, the majority were recorded by
our national companies in Hungary, Slovakia, and the Czech Republic.
With both telecommunication providers and OTT players offering TV
services in the countries of our segment, the TV market there is highly
contested.

millions of €

TOTAL REVENUE a 2,811 2,781 30 1.1 11,589
Greece 686 690 (4) (0.6) 2,846
Romania 226 230 (4) (1.7) 972
Hungary 443 415 28 6.7 1,808
Poland a 375 364 11 3.0 1,509
Czech Republic 254 237 17 7.2 1,011
Croatia 222 224 (2) (0.9) 955
Slovakia 181 183 (2) (1.1) 748
Austria 218 228 (10) (4.4) 900
Other b 253 260 (7) (2.7) 1,069
Profit from operations (EBIT) 345 324 21 6.5 462
EBIT margin % 12.3 11.7 4.0
Depreciation, amortization and impairment losses (559) (553) (6) (1.1) (3,157)
EBITDA 905 877 28 3.2 3,619
Special factors affecting EBITDA (7) (12) 5 41.7 (130)
EBITDA (ADJUSTED FOR SPECIAL FACTORS) a 911 889 22 2.5 3,749
Greece 280 266 14 5.3 1,135
Romania 33 37 (4) (10.8) 166
Hungary 121 109 12 11.0 545
Poland a 96 100 (4) (4.0) 419
Czech Republic 111 100 11 11.0 406
Croatia 85 84 1 1.2 386
Slovakia 80 77 3 3.9 315
Austria 76 89 (13) (14.6) 266
Other b 28 28 ‒ ‒ 110
CASH CAPEX (438) (475) 37 7.8 (1,874)
The contributions of the national companies correspond to their respective unconsolidated financial statements and do not take consolidation effects at operating segment level into
account.
a The business of T-Systems Polska Sp. z o.o., which, in organizational terms, was previously assigned to the Systems Solutions operating segment, is now disclosed under the Europe
operating segment as of September 1, 2017. Figures for prior periods were not adjusted.
b “Other”: national companies of Albania, Macedonia, and Montenegro, as well as IWS (International Wholesale), consisting of ICSS (International Carrier Sales & Solutions) and its nation-
al companies, the GTS Central Europe group in Romania, and the Europe Headquarters.
Total revenue Revenue from Consumers increased by 2.2 percent compared with
Our Europe operating segment generated total revenue of EUR 2.8 bil- a year ago, driven mainly by mobile business. Revenue from fixed-
lion in the first quarter of 2018, a slight year-on-year increase of 1.1 per- network business rose, too, on the back of the trend in TV and broad-
cent. In organic terms, i.e., assuming constant exchange rates, revenue band operations driven by our innovative TV and program management
was on a par with the level recorded in the prior-year quarter. The man activities. In addition, strong growth in the number of FMC customers
datory first-time application of the IFRS 15 accounting standard as of had a positive impact on revenue. Overall, this offset the revenue de-
January 1, 2018 did not have a material effect on the development of cline that was primarily attributable to voice telephony.
revenues at segment level.
In Business Customers operations, especially ICT, we recorded year-
Business Customer operations recorded substantial revenue growth, on-year growth of 2.7 percent in the first quarter of 2018. Our Smart
mainly due to the positive trend in ICT business in Hungary. Mobile City projects in particular supported this trend with their IoT revenue
communications revenue was also up slightly year-on-year. Most of the contribution and our ICT business in Hungary again put in a strong
countries in our operating segment contributed to this growth. Fixed- performance. But our core business continues to grow as well, with
network revenues at segment level decreased overall year-on-year due business customer numbers rising year-on-year in our mobile communi-
to the decline in wholesale business offsetting the positive revenue cations portfolio.
effect – mainly in Greece and Hungary – from TV and broadband busi-
ness. Intense competition on the telecommunications markets as well Wholesale revenue declined year-on-year due in part to lower revenues
as lower EU roaming charges had a negative impact on our revenue in in some companies, as well as to international wholesale business, in
many countries of our operating segment. particular following the latest changes to EU roaming regulation.

Considering the development by country, our national company in Adjusted EBITDA increased by 11.0 percent year-on-year to EUR 121 mil-
Hungary made the largest contribution to the organic development of lion, driven by the revenue growth. This increase was also evident in
revenue in the first quarter of 2018, more than offsetting the decline in organic adjusted EBITDA.
revenues in particular in Austria, Greece, and Romania.
Austria. Our national company in Austria generated revenue of EUR 218
EBITDA, adjusted EBITDA million in the first quarter of 2018, down 4.4 percent year-on-year. This
Our Europe operating segment generated adjusted EBITDA of was largely attributable to a high positive non-recurring effect from
EUR 911 million in the first quarter of 2018, an increase of 2.5 percent. voice telephony business in the prior-year quarter. Excluding this effect,
In organic terms, i.e., assuming constant exchange rates, adjusted revenue development would have remained stable. To meet grow-
EBITDA increased by 1.6 percent. The mandatory application of the ing demand for broadband internet access, the national company in
new IFRS 15 accounting standard effective January 1, 2018 did not Austria will transform from a mobile-only provider into an integrated
have a material effect on the development of adjusted EBITDA, either. challenger with mobile and fixed-network infrastructure following the
Savings in indirect costs – including lower personnel costs in Greece take-over of the cable and fixed-network business from UPC Austria
– were the main factor in this increase. In terms of direct costs, market (subject to the approval of the antitrust authorities). This will soon allow
investments and costs relating to the B2B/ICT operations increased. In us to offer fixed-network technology in addition to the mobile broad-
addition, regulatory effects, including the cuts to EU roaming charges, band internet services already being successfully marketed to our cus-
also reduced adjusted EBITDA. tomers.
Considering the development by country, the increase in adjusted The decline in revenue also impacted adjusted EBITDA, which de-
EBITDA was largely attributable to the positive trends in our national creased by 14.6 percent to EUR 76 million year-on-year. Increased
companies in Greece, Hungary, the Czech Republic, and Slovakia. Off- market investments contributed to this trend. Excluding the aforemen-
setting developments were reported mainly at the national companies tioned non-recurring effect, adjusted EBITDA decreased only slightly.
in Austria, Poland, and Romania.
Poland. In Poland, revenue grew 3.0 percent year-on-year to EUR 375 mil-
EBITDA increased substantially by 3.2 percent year-on-year to lion; in organic terms, it was on par with the prior-year period. We thus
EUR 905 million, due primarily to the increase in adjusted EBITDA with continued to stabilize the revenue trend. Revenue from B2B/ICT busi-
special factors having no material effect. In organic terms, EBITDA grew ness was higher, while revenue from mobile business was lower.
by 2.2 percent.
Adjusted EBITDA stood at EUR 96 million, down 4.0 percent year-on-
Development of operations in selected countries year. In organic terms, adjusted EBITDA declined by 6.9 percent, mainly
Greece. In Greece, revenue stood at EUR 686 million in the first quarter due to regulation-induced higher interconnection and roaming costs.
of 2018, just 0.6 percent below the prior-year quarter. Higher mobile
communications revenue was not enough to fully offset negative ef- EBIT
fects in the fixed-network portfolio: Whereas broadband and B2B/ICT EBIT in our Europe operating segment increased significantly by 6.5 per-
business continued to grow, revenue from wholesale and TV business cent in the first quarter of 2018 to EUR 345 million due mainly to the posi
declined. tive development of EBITDA. Depreciation, amortization and impairment
losses increased only slightly by 1.1 percent to EUR 559 million.
In the first quarter of 2018, adjusted EBITDA in Greece increased clearly
year-on-year by 5.3 percent to EUR 280 million. Thanks to increased Cash capex
cost efficiency, especially in regard to personnel costs, we more than In the reporting period, our Europe operating segment reported cash
offset the decline in revenues. capex of EUR 438 million. The decline of EUR 37 million is largely
attributable to restrained investment activities in most of our national
Hungary. In Hungary, revenue grew in the first quarter of 2018 by companies. By contrast, in some countries we invested more heavily in
6.7 percent compared with the prior year to EUR 443 million. In or the broadband and fiber-optic roll-out as part of our integrated network
ganic terms, it increased by 7.6 percent. This growth was driven by the strategy. As in the prior-year quarter, we acquired a small number of
fixed-network business with sustained clear revenue growth in the B2B/ spectrum licenses in the first quarter of 2018.
ICT business customer operations. Broadband, TV, and terminal equip-
ment business also made a positive contribution to total revenue. Our
FMC offering, MagentaOne, remained very popular among consumers
and business customers. This was evident in a growing customer base
and an increase in revenue. Service revenues as well as terminal equip-
ment business performed well, which was also attributable to our high-
speed, high-reach mobile network.

SYSTEMS SOLUTIONS
ORDER ENTRY
millions of €
Change
Mar. 31, 2018/
Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 Mar. 31, 2017 %
ORDER ENTRY 1,506 5,241 1,274 18.2
Development of business our plan to build on these strategic growth areas. For example, we offer
Order entry at our Systems Solutions operating segment was positive our partners’ services from our data centers in Germany. In addition,
in the reporting quarter, rising 18.2 percent year-on-year. The positive as a means of strengthening our telecommunications portfolio, we are
order entry trend was observable not only for IT and telecommunica- using our global partner alliance ngena (Next Generation Enterprise
tions, but also for digitalization business. Network Alliance) to provide our customers with quickly available inter
national network connections and services. Security and high availability
As part of the ongoing realignment of our Systems Solutions operating play a key role here – both for our customers and for us. The transfor
segment, we are focusing not only on established IT and telecommuni- mation of our Systems Solutions operating segment into a digital partner
cations business, but on expanding our strategic growth areas in digita- for our customers continues, with our digitalization solutions serving as
lization business, e.g., digital solutions, cloud computing, the Internet of the main pillars of this new architecture, flanked by appropriate security
Things, and security. This is proceeding in parallel with an observable solutions and simultaneous support for existing infrastructures and
market shift away from traditional IT business and toward cloud comput- applications.
ing and digitalization. Strategic partnerships remain a key component of
DEVELOPMENT OF OPERATIONS a
millions of €

TOTAL REVENUE 1,665 1,704 (39) (2.3) 6,918
External revenue 1,332 1,369 (37) (2.7) 5,504
Loss from operations (EBIT) (76) (37) (39) n. a. (1,356)
Special factors affecting EBIT (38) (35) (3) (8.6) (1,477)
EBIT (adjusted for special factors) (38) (2) (36) n. a. 121
EBIT margin (adjusted for special factors) % (2.3) (0.1) 1.7
Depreciation, amortization and impairment losses (95) (98) 3 3.1 (1,636)
EBITDA 19 61 (42) (68.9) 280
Special factors affecting EBITDA (38) (35) (3) (8.6) (229)
EBITDA (ADJUSTED FOR SPECIAL FACTORS) 57 96 (39) (40.6) 509
CASH CAPEX (83) (86) 3 3.5 (383)
a Thebusiness of T-Systems Polska Sp. z o.o., which, in organizational terms, was previously assigned to the Systems Solutions operating segment, is now disclosed under the Europe
operating segment as of September 1, 2017. Prior-year comparatives were not adjusted.
Total revenue
In the first quarter of 2018, total revenue in our Systems Solutions
operating segment was down slightly year-on-year at EUR 1.7 billion.
This was primarily due to declining revenues from our traditional IT port
folio. Compared with the same period last year, there was a noticeable
decline in revenue from international corporate customers, also due to
the general market contraction and to price erosion in our core market
of Western Europe. By contrast, our telecommunications revenues rose
7.5 percent year-on-year. Strategic growth areas such as digitalization
– e.g., cloud computing, the Internet of Things, and security – also ex-
hibited a positive trend, posting revenue growth relative to the prior-year
quarter.

EBITDA, adjusted EBITDA EBIT, adjusted EBIT

In the first quarter of 2018, adjusted EBITDA at our Systems Solutions Adjusted EBIT in our Systems Solutions operating segment declined
operating segment declined by EUR 39 million to EUR 57 million, which by EUR 36 million compared with the first quarter of 2017, coming in at
was in line with our expectations. In addition to higher costs incurred EUR ‒38 million. The effects described under adjusted EBITDA were
to expand the strategic growth areas in digitalization business – which the main drivers of this decrease. Depreciation, amortization and im-
includes cloud computing, the Internet of Things, and security – the pairment losses were at the same level as a year earlier. EBIT declined
main cause of this decline was the pressure on margins caused by a for similar reasons, decreasing by EUR 39 million to EUR ‒76 million.
reduction in the scope of individual corporate customer contracts for
traditional IT business. Earnings from our telecommunications portfolio Cash capex
in the reporting period were roughly on par with the same period last Cash capex in the Systems Solutions operating segment stood at
year, despite the impact of the ongoing migration to All IP. EBITDA de- EUR 83 million in the reporting period, compared with EUR 86 million
creased by EUR 42 million year-on-year to EUR 19 million, mainly due to in the prior-year period. Capital expenditures remain focused on de
the effects described under adjusted EBITDA. veloping our strategic growth areas in digitalization business – such as
digital solutions, cloud computing, the Internet of Things, and security
– and on expanding our European toll collection system.
GROUP DEVELOPMENT
thousands
Change Change
Mar. 31, 2018/ Mar. 31, 2018/
Dec. 31, 2017 Mar. 31, 2017
Mar. 31, 2018 Dec. 31, 2017 % Mar. 31, 2017 %
NETHERLANDS Mobile customers 3,905 3,850 1.4 3,789 3.1
Broadband lines 198 191 3.7 176 12.5
After successfully repositioning itself in the market, T-Mobile Nether-

lands posted quarter-on-quarter growth of 1.4 percent with its mobile
portfolio for consumers and business customers. This increase was
mainly due to the new rate plan portfolio introduced in the first quarter
of 2017 and to the enhanced market approach it enabled, but also to
business customer net additions. The number of customers in the fixed-
network consumer portfolio also grew – by 3.7 percent.
millions of €

TOTAL REVENUE 528 595 (67) (11.3) 2,263
Netherlands 309 341 (32) (9.4) 1,355
Profit from operations (EBIT) 148 686 (538) (78.4) 1,504
Depreciation, amortization and impairment losses (78) (71) (7) (9.9) (304)
EBITDA 227 758 (531) (70.1) 1,808
Special factors affecting EBITDA (5) 519 (524) n. a. 893
EBITDA (ADJUSTED FOR SPECIAL FACTORS) 231 238 (7) (2.9) 915
Netherlands 108 110 (2) (1.8) 421
CASH CAPEX (85) (81) (4) (4.9) (290)

Total revenue EBIT

In the first quarter of 2018, total revenue in our Group Development op- EBIT decreased by EUR 0.5 billion year-on-year to EUR 0.1 billion, due
erating segment decreased by 11.3 percent year-on-year. This decline to the same factors described under EBITDA. Depreciation, amortization
was attributable, on the one hand, to the revenue forgone following and impairment losses were higher than in the prior-year period, mainly
the sale of Strato as of March 31, 2017 and, on the other, to the man- due to higher capital expenditure on network capacity and quality at
datory application of IFRS 15 as of January 1, 2018 and to the effects T-Mobile Netherlands.
of regulatory intervention, e.g., lower EU roaming charges and national
termination rates, at T-Mobile Netherlands. Revenue at DFMG was un- Cash capex
changed against the prior-year period. Cash capex at our Group Development operating segment rose by
4.9 percent year-on-year in the first quarter of 2018 due to ongoing
EBITDA, adjusted EBITDA investment in network capacity and quality at T-Mobile Netherlands.
First-quarter EBITDA decreased by EUR 0.5 billion year-on-year to
EUR 0.2 billion. Regular reviews of our investment portfolio prompted
us to sell our stake in Strato last year. The divestiture resulted in income
of EUR 0.5 billion, which was recognized as special factors in the first
quarter of 2017.
Adjusted EBITDA in our Group Development operating segment was

down 2.9 percent year-on-year. Forgone earnings following the decon-
solidation of Strato were the main cause of this decline. Adjusted EBITDA
at T-Mobile Netherlands decreased by 1.8 percent in the first quarter of
2018 owing to first-time application of IFRS 15 and to the effects of reg-
ulatory intervention.
GROUP HEADQUARTERS & GROUP SERVICES

For information on changes in the organizational structure, please refer
to the section “Group organization, strategy, and management,” page 8,
and to the disclosures under segment reporting in the interim consoli-
dated financial statements, pages 44 and 45.
millions of €

TOTAL REVENUE 651 735 (84) (11.4) 2,935
Loss from operations (EBIT) (324) (276) (48) (17.4) (1,437)
Depreciation, amortization and impairment losses (162) (148) (14) (9.5) (657)
EBITDA (162) (128) (34) (26.6) (780)
Special factors affecting EBITDA (92) (16) (76) n. a. (119)
EBITDA (ADJUSTED FOR SPECIAL FACTORS) (70) (113) 43 38.1 (661)
CASH CAPEX (248) (242) (6) (2.5) (1,005)
Total revenue
Total revenue in our Group Headquarters & Group Services segment
decreased by 11.4 percent year-on-year in the first quarter of 2018. This
decline was mainly due to the fact that, as of January 2016, the costs of
intragroup development services newly commissioned from Deutsche
Telekom IT in Germany are no longer charged internally. Other reasons
for the decrease were forgone revenue from DeTeMedien, which was
sold effective June 2017, and lower revenue from land and buildings,
essentially due to further optimization of the use of space.

EBITDA, adjusted EBITDA RISKS AND OPPORTUNITIES

Adjusted EBITDA in the Group Headquarters & Group Services segment
improved by EUR 43 million year-on-year in the reporting period, particu- This section provides important additional information and explains
larly as a result of higher income from the sale of real estate. The reduc- recent changes in the risks and opportunities as described in the
tion in headcount brought about by ongoing restructuring of the Vivento combined management report for the 2017 financial year (2017 Annual
workforce also had a positive effect. By contrast, lower revenue from Report, page 111 et seq.). Readers are also referred to the Disclaimer at
land and buildings had a negative impact on adjusted EBITDA. the end of this report.
Overall, special factors negatively affecting EBITDA – in particular staff- REGULATION

related measures – totaled EUR 92 million in the reporting period, com- Deregulation of retail products in Germany. The Federal Network
pared with EUR 16 million in the prior-year period. Agency is planning to deregulate product bundles for retail customers.
However, it is not seeking to lift the regulation entirely – retail regulation
will remain for telephone lines without broadband included in product
bundles. The Federal Network Agency is currently conducting a market
EBIT analysis to review the situation. If the current draft enters into force as
The year-on-year decrease of EUR 48 million in EBIT was mainly due is, the Federal Network Agency will be deregulating the “double play
to the lower unadjusted EBITDA figure. Depreciation, amortization and and bundles with even more components” sub-market, while single-play
impairment losses were up EUR 14 million on the prior-year level. This products and “old” lines without call rates or broadband will continue to
increase was due, in particular, to higher depreciation and amortization be regulated. We expect a decision on the planned deregulation by mid-
caused by increased levels of capitalization at Deutsche Telekom IT. The 2018. The regulation of wholesale products will remain unaffected.
latter were attributable to the fact that the costs of newly commissioned
intragroup development services in Germany are no longer charged in- LITIGATION
ternally. Claims relating to charges for the shared use of cable ducts. In con-
nection with legal proceedings brought by Unitymedia Hessen GmbH &
Cash capex Co. KG, Unitymedia NRW GmbH, and Kabel BW GmbH, an appeal filed
Cash capex grew by EUR 6 million year-on-year. Higher capital expen by the plaintiffs was rejected by the Düsseldorf Higher Regional Court
diture on technology and innovation – essentially for development in its ruling of March 14, 2018. A further appeal was not allowed. This
services – was partially offset by lower expenditure for the purchase decision is not final and legally binding.
of vehicles.
ASSESSMENT OF THE AGGREGATE RISK POSITION
At the time of preparing this report, neither our risk management system
nor our management could identify any material risks to the continued
EVENTS AFTER THE REPORTING PERIOD existence of Deutsche Telekom AG or a significant Group company as a
(MARCH 31, 2018) going concern.
For information on events after the reporting period, please refer to

“Events after the reporting period” in the interim consolidated financial
statements, page 56.
FORECAST
The statements in this section reflect the current views of our manage-
ment. Contrary to the forecasts published in the 2017 combined man-
agement report (2017 Annual Report, page 101 et seq.), we now expect
the Group’s adjusted EBITDA for the 2018 financial year to reach around
EUR 23.3 billion, up from the original forecast of around EUR 23.2 bil-
lion. This is largely attributable to stronger business performance in the
United States operating segment, where we now expect adjusted EBITDA
of around USD 11.4 billion, up from around USD 11.3 billion. All other
statements made in the 2017 combined management report remain
valid. For additional information and recent changes in the economic
situation, please refer to the section “The economic environment,”
pages 8 and 9, in this interim Group management report. Readers
are also referred to the Disclaimer at the end of this report.

Interim consolidated financial statements 27
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
millions of €
Mar. 31, 2018 Dec. 31, 2017 Change Change % Mar. 31, 2017
ASSETS
CURRENT ASSETS 21,706 20,392 1,314 6.4 27,663
Cash and cash equivalents 3,618 3,312 306 9.2 9,542
Trade and other receivables 9,121 9,723 (602) (6.2) 9,093
Contract assets 1,728 n. a. n. a. n. a. n. a.
Current recoverable income taxes 246 236 10 4.2 192
Other financial assets 2,918 3,329 (411) (12.3) 4,907
Inventories 1,819 1,985 (166) (8.4) 1,646
Other assets 2,122 1,646 476 28.9 2,136
Non-current assets and disposal groups held for sale 134 161 (27) (16.8) 148
NON-CURRENT ASSETS 116,319 120,943 (4,624) (3.8) 120,961
Intangible assets 61,957 62,865 (908) (1.4) 60,269
Property, plant and equipment 46,576 46,878 (302) (0.6) 46,788
Capitalized contract costs 1,286 n. a. n. a. n. a. n. a.
Investments accounted for using the equity method 571 651 (80) (12.3) 722
Other financial assets 1,829 5,716 (3,887) (68.0) 6,971
Deferred tax assets 3,199 4,013 (814) (20.3) 5,477
Other assets 902 819 83 10.1 733
TOTAL ASSETS 138,025 141,334 (3,309) (2.3) 148,624
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES 26,223 27,366 (1,143) (4.2) 32,375
Financial liabilities 8,905 8,358 547 6.5 14,871
Trade and other payables 9,132 10,971 (1,839) (16.8) 8,983
Income tax liabilities 307 224 83 37.1 238
Other provisions 3,082 3,372 (290) (8.6) 3,076
Other liabilities 2,913 4,440 (1,527) (34.4) 5,075
Contract liabilities 1,885 n. a. n. a. n. a. n. a.
Liabilities directly associated with non-current assets
and disposal groups held for sale ‒ ‒ ‒ n. a. 133
NON-CURRENT LIABILITIES 68,111 71,498 (3,387) (4.7) 76,431
Financial liabilities 48,799 49,171 (372) (0.8) 50,402
Provisions for pensions and other employee benefits 5,264 8,375 (3,111) (37.1) 8,293
Other provisions 3,115 3,155 (40) (1.3) 3,285
Deferred tax liabilities 7,078 6,967 111 1.6 10,025
Other liabilities 3,321 3,831 (510) (13.3) 4,427
Contract liabilities 533 n. a. n. a. n. a. n. a.
LIABILITIES 94,334 98,864 (4,530) (4.6) 108,806
SHAREHOLDERS’ EQUITY 43,691 42,470 1,221 2.9 39,818
Issued capital 12,189 12,189 0 n. a. 11,973
Treasury shares (49) (49) 0 n. a. (50)
12,140 12,140 0 0.0 11,923
Capital reserves 54,761 55,010 (249) (0.5) 53,349
Retained earnings including carryforwards (34,472) (38,750) 4,278 11.0 (35,971)
Total other comprehensive income (1,332) (1,127) (205) (18.2) 145
Net profit (loss) 992 3,461 (2,469) (71.3) 747
ISSUED CAPITAL AND RESERVES ATTRIBUTABLE TO
OWNERS OF THE PARENT 32,088 30,734 1,354 4.4 30,193
Non-controlling interests 11,603 11,737 (134) (1.1) 9,625
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 138,025 141,334 (3,309) (2.3) 148,624
The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” took effect as of January 1, 2018. Prior-year figures were not adjusted.
For more information, please refer to the section “Accounting policies,” page 33 et seq.

28 Interim consolidated financial statements
CONSOLIDATED INCOME STATEMENT
millions of €

NET REVENUE 17,924 18,646 (722) (3.9) 74,947
Of which: interest income calculated using the effective interest
method 1 n. a. n. a. n. a. n. a.
Other operating income 373 770 (397) (51.6) 3,819
Changes in inventories 1 40 (39) (97.5) 21
Own capitalized costs 559 542 17 3.1 2,292
Goods and services purchased (8,718) (9,312) 594 6.4 (38,161)
Personnel costs (4,057) (3,964) (93) (2.3) (15,504)
Other operating expenses (813) (761) (52) (6.8) (3,444)
Impairment losses on financial assets (106) n. a. n. a. n. a. n. a.
Gains (losses) from the write-off of financial assets
measured at amortized cost (10) n. a. n. a. n. a. n. a.
Other (697) (761) 64 8.4 (3,444)
Depreciation, amortization and impairment losses (3,097) (3,191) 94 2.9 (14,586)
PROFIT FROM OPERATIONS 2,171 2,771 (600) (21.7) 9,383
Finance costs (422) (637) 215 33.8 (2,197)
Interest income 68 75 (7) (9.3) 320
Interest expense (490) (713) 223 31.3 (2,517)
Share of profit (loss) of associates and joint ventures
accounted for using the equity method 69 4 65 n. a. 76
Other financial income (expense) (58) (1,406) 1,348 95.9 (2,269)
PROFIT (LOSS) FROM FINANCIAL ACTIVITIES (411) (2,040) 1,629 79.9 (4,390)
PROFIT (LOSS) BEFORE INCOME TAXES 1,760 731 1,029 n. a. 4,994
Income taxes (494) 78 (572) (733.3) 558
PROFIT (LOSS) 1,266 809 457 56.5 5,551
PROFIT (LOSS) ATTRIBUTABLE TO
Owners of the parent (net profit (loss)) 992 747 245 32.8 3,461
Non-controlling interests 274 62 212 n. a. 2,090
The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” took effect as of January 1, 2018. Prior-year figures were not adjusted.
For more information, please refer to the section “Accounting policies,” page 33 et seq.
EARNINGS PER SHARE

Profit (loss) attributable to the owners of
the parent (net profit (loss)) millions of € 992 747 245 32.8 3,461
Weighted average number of ordinary shares (basic/diluted) millions 4,761 4,657 104 2.2 4,703
EARNINGS PER SHARE BASIC/DILUTED € 0.21 0.16 0.05 31.3 0.74

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
millions of €
Q1 2018 Q1 2017 Change FY 2017

PROFIT (LOSS) 1,266 809 457 5,551
Items not subsequently reclassified to profit or loss (not recycled)
Gains (losses) from the remeasurement of equity instruments a (662) n. a. n. a. n. a.
Gains (losses) from the remeasurement of defined benefit plans 1 119 (118) 116
Revaluation due to business combinations 0 0 0 0
Share of profit (loss) of investments accounted for using the equity method 0 0 0 0
Other income and expense recognized directly in equity
Income taxes relating to components of other comprehensive income (6) (38) 32 (19)
(667) 81 (748) 97
Items subsequently reclassified to profit or loss (recycled), if certain reasons are given
Exchange differences on translating foreign operations
Recognition of other comprehensive income in income statement 0 0 0 0
Change in other comprehensive income (not recognized in income statement) (616) (78) (538) (2,196)
Gains (losses) from the remeasurement of available-for-sale financial assets a, b
Recognition of other comprehensive income in income statement n. a. 1 n. a. 7
Change in other comprehensive income (not recognized in income statement) n. a. (1) n. a. 27
Gains (losses) from the remeasurement of debt instruments a
Recognition of other comprehensive income in income statement (4) n. a. n. a. n. a.
Change in other comprehensive income (not recognized in income statement) 19 n. a. n. a. n. a.
Gains (losses) from hedging instruments a, c
Recognition of other comprehensive income in income statement n. a. 61 n. a. 450
Change in other comprehensive income (not recognized in income statement) n. a. 57 n. a. (270)
Gains (losses) from hedging instruments (designated risk components) a
Recognition of other comprehensive income in income statement 45 n. a. n. a. n. a.
Change in other comprehensive income (not recognized in income statement) (111) n. a. n. a. n. a.
Gains (losses) from hedging instruments (hedging costs) a, d
Recognition of other comprehensive income in income statement 0 n. a. n. a. n. a.
Change in other comprehensive income (not recognized in income statement) 34 n. a. n. a. n. a.
Share of profit (loss) of investments accounted for using the equity method
Recognition of other comprehensive income in income statement 0 0 0 0
Change in other comprehensive income (not recognized in income statement) 7 (1) 8 0
Income taxes relating to components of other comprehensive income 10 (37) 47 (58)
(616) 2 (618) (2,040)
OTHER COMPREHENSIVE INCOME (1,282) 83 (1,365) (1,943)
TOTAL COMPREHENSIVE INCOME (17) 892 (909) 3,608
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
Owners of the parent (76) 900 (976) 2,340
Non-controlling interests 60 (8) 68 1,268
a For the new items in relation to IFRS 9 to be recognized in accordance with IAS 1, Deutsche Telekom utilizes the option of not showing comparative figures for the prior-year period.
b The measurement category “available-for-sale financial assets” as per IAS 39 was to be applied for the last time as of December 31, 2017.
c Gains and losses from hedging costs were recognized for the last time as of December 31, 2017 under IAS 39 as part of gains and losses from hedging instruments.
Under IFRS 9, gains and losses from hedging costs are recognized separately in equity.
d In
the 2018 financial year, hedging costs relate entirely to cross currency basis spreads; please refer to the information on financial instruments, page 46 et seq.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
millions of €
Issued capital and reserves attributable to owners of the parent
Equity Consolidated shareholders’ Total other

contributed equity generated comprehensive income
Retained Available-
earnings Translation for-sale
Capital including of foreign Revaluation financial assets
Issued capital Treasury shares reserves carryforwards Net profit (loss) operations surplus (IAS 39)
BALANCE AT JANUARY 1, 2017 11,973 (50) 53,356 (38,727) 2,675 (371) (60) 69
Changes in the composition
of the Group
Transactions with owners (51) (5)
Unappropriated profit (loss)
carried forward 2,675 (2,675)
Dividends
Capital increase at
Deutsche Telekom AG
Capital increase from
share-based payment 44
Share buy-back/shares held
in a trust deposit
Profit (loss) 747
Other comprehensive income 81 (8)
TOTAL COMPREHENSIVE INCOME
Transfer to retained earnings
BALANCE AT MARCH 31, 2017 11,973 (50) 53,349 (35,971) 747 (384) (60) 69
BALANCE AT JANUARY 1, 2018 12,189 (49) 55,010 (38,750) 3,461 (1,729) (60) 101
Transfer resulting from change in
accounting standards 1,452 (101)
Changes in the composition
of the Group
Transactions with owners (295) (12)
Unappropriated profit (loss)
carried forward 3,461 (3,461)
Dividends
Capital increase at
Deutsche Telekom AG
Capital increase from
share-based payment 45
Share buy-back/shares held
in a trust deposit 1
Profit (loss) 992
Other comprehensive income 1 (396)
TOTAL COMPREHENSIVE INCOME
Transfer to retained earnings (636) 26
BALANCE AT MARCH 31, 2018 12,189 (49) 54,761 (34,472) 992 (2,136) (34) n. a.
The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” took effect as of January 1, 2018.
Prior-year figures were not adjusted. For more information, please refer to the section “Accounting policies,” page 33 et seq.

Total Total
Non-controlling shareholders’
Issued capital and reserves attributable to owners of the parent interests equity
Total other
comprehensive income
Equity Debt
instruments instruments
measured measured
at fair value at fair value Hedging
through other through other instruments: Hedging Investments
comprehensive comprehensive Hedging designated risk instruments: accounted
income income instruments components hedging costs for using the
(IFRS 9) (IFRS 9) (IAS 39) (IFRS 9) (IFRS 9) equity method Taxes
n. a. n. a. 609 n. a. n. a. 27 (196) 29,305 9,540 38,845
‒ ‒ ‒
(56) 70 14
0 ‒ 0
‒ ‒ ‒
‒ ‒ ‒
44 23 67
‒ ‒ ‒
747 62 809
118 (1) (37) 153 (70) 83
900 (8) 892
‒ ‒ ‒
n. a. n. a. 727 n. a. n. a. 26 (233) 30,193 9,625 39,818
n. a. n. a. 789 n. a. n. a. 26 (254) 30,734 11,737 42,470
93 336 (789) 789 (93) 1,688 182 1,870
‒ ‒ ‒
2 (304) (402) (706)
0 ‒ 0
‒ ‒ ‒
‒ ‒ ‒
45 28 73
1 (1) 0
992 274 1,266
(662) 8 (67) 34 7 9 (1,068) (214) (1,282)
(76) 60 (17)
645 (35) 0 0 0
76 346 n. a. 722 34 (3) (338) 32,088 11,603 43,691

CONSOLIDATED STATEMENT OF CASH FLOWS
millions of €
Q1 2018 Q1 2017 FY 2017

PROFIT BEFORE INCOME TAXES 1,760 731 4,994
Depreciation, amortization and impairment losses 3,097 3,191 14,586
Profit (loss) from financial activities 411 2,040 4,390
(Profit) loss on the disposal of fully consolidated subsidiaries ‒ (519) (537)
(Income) loss from the sale of stakes accounted for using the equity method ‒ ‒ (226)
Other non-cash transactions 112 119 (1,447)
(Gains) losses from the disposal of intangible assets and property, plant and equipment (65) (33) (103)
Change in assets carried as working capital 326 358 (1,874)
Change in provisions (282) (70) 265
Change in other liabilities carried as working capital (593) (531) 51
Income taxes received (paid) (124) (80) (634)
Dividends received 163 75 241
Net payments from entering into, canceling or changing the terms and conditions of interest rate derivatives ‒ ‒ ‒
CASH GENERATED FROM OPERATIONS 4,805 5,280 19,706
Interest paid (823) (1,171) (3,783)
Interest received 314 245 1,274
NET CASH FROM OPERATING ACTIVITIES 4,297 4,355 17,196
Cash outflows for investments in
Intangible assets (809) (732) (10,345)
Property, plant and equipment (2,330) (2,548) (9,149)
Non-current financial assets (108) (77) (361)
Payments to acquire control of subsidiaries and associates (277) (4) (15)
Proceeds from disposal of
Intangible assets ‒ 14 21
Property, plant and equipment 160 104 379
Non-current financial assets 24 19 612
Proceeds from the loss of control of subsidiaries and associates (61) (4) 528
Net change in short-term investments and marketable securities and receivables (243) (262) 1,514
Other ‒ (1) 2
NET CASH USED IN INVESTING ACTIVITIES (3,643) (3,491) (16,814)
Proceeds from issue of current financial liabilities 13,403 1,509 13,516
Repayment of current financial liabilities (15,168) (8,395) (26,537)
Proceeds from issue of non-current financial liabilities 2,466 8,148 11,215
Repayment of non-current financial liabilities (21) (10) (10)
Dividends (including to non-controlling interests) ‒ (1) (1,559)
Repayment of lease liabilities (205) (196) (715)
Cash inflows from transactions with non-controlling entities 1 14 18
Cash outflows from transactions with non-controlling entities (770) (88) (522)
Other ‒ ‒ ‒
NET CASH (USED IN) FROM FINANCING ACTIVITIES (294) 980 (4,594)
Effect of exchange rate changes on cash and cash equivalents (53) (39) (226)
Changes in cash and cash equivalents associated with non-current assets and disposal groups held for sale ‒ (10) 3
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 306 1,795 (4,435)
CASH AND CASH EQUIVALENTS, AT THE BEGINNING OF THE PERIOD 3,312 7,747 7,747
CASH AND CASH EQUIVALENTS, AT THE END OF THE PERIOD 3,618 9,542 3,312

SIGNIFICANT EVENTS AND TRANSACTIONS STATEMENT OF COMPLIANCE

The interim consolidated financial statements for the period ended
ACCOUNTING POLICIES March 31, 2018 have been prepared voluntarily in compliance with Inter
In accordance with the amended § 53 (6) of the Exchange Rules for the national Accounting Standard (IAS) 34. As permitted by IAS 34, it has
Frankfurter Wertpapierbörse (FWB), Deutsche Telekom AG voluntarily been decided to publish a condensed version compared to the consol-
publishes a quarterly financial report that comprises interim consolidated idated financial statements at December 31, 2017. All IFRSs applied by
financial statements and an interim Group management report. The Deutsche Telekom have been adopted by the European Commission for
interim consolidated financial statements were prepared in accordance use within the EU.
with the International Financial Reporting Standards (IFRSs) applicable
to interim financial reporting as adopted by the EU. The interim manage- In the opinion of the Board of Management, the reviewed quarterly
ment report for the Group was prepared in accordance with the WpHG. financial report includes all standard adjustments to be applied on an
ongoing basis that are required to give a true and fair view of the results
of operations and financial position of the Group. Please refer to the
notes to the consolidated financial statements as of December 31, 2017
for the accounting policies applied for the Group’s financial reporting,
2017 Annual Report, page 153 et seq.
INITIAL APPLICATION OF NEW STANDARDS AND INTERPRETATIONS

AS WELL AS AMENDMENTS TO STANDARDS AND INTERPRETATIONS
IN THE REPORTING PERIOD RELEVANT FOR THE 2018 FINANCIAL YEAR
To be applied by
Deutsche Telekom Impact on the presentation of Deutsche Telekom’s
Pronouncement Title from Changes results of operations and financial position
IFRS 9 Financial Instruments Jan. 1, 2018 IFRS 9 introduces new classification and measurement require- The effects of IFRS 9 are detailed in the
ments for financial instruments and replaces, in particular, explanations following this table.
IAS 39. The new regulations cover the classification of financial
assets on the basis of the underlying business models and the
cash flow characteristics of the instruments. Under the new
provisions on the accounting of impairment losses, expected
losses have to be recognized on initial recognition. In addition,
the requirements apply not only to debt instruments, but also
to contract assets pursuant to IFRS 15. Among other things,
the new rules for reporting hedge relationships provide the
option of recognizing hedging costs separately in other com-
prehensive income.
IFRS 15 Revenue from Jan. 1, 2018 This standard provides a single, principles-based five-step The standard has a material effect on the presen-
Contracts with model for the determination and recognition of revenue to be tation of Deutsche Telekom’s results of operations
Customers applied to all contracts with customers. It replaces in particular and financial position. The effects of IFRS 15 are
IAS 18 “Revenue” and IAS 11 “Construction Contracts.” detailed in the explanations following this table.
When applying IFRS 15 for the first time, an entity shall apply
the standard in full for the current period. In respect of prior
periods, the transition guidance grants entities an option to
either apply IFRS 15 in full to prior periods (with certain limited
practical expedients being available) or to retain prior-period
figures as reported under the previous standards, recognizing
the cumulative effect of applying IFRS 15 to all contracts that
had not yet been completed at the beginning of the reporting
period as an adjustment to the opening balance of equity at
the date of first-time application (beginning of current reporting
period).
Amendments to Effective date of Jan. 1, 2018 Mandatory adoption of IFRS 15 for reporting periods begin- The effects of IFRS 15 are detailed in the
IFRS 15 IFRS 15 ning on or after January 1, 2018. explanations following this table.
Amendments to Clarifications to Jan. 1, 2018 The clarifications address the following topics relating to IFRS 15: The effects of IFRS 15 are detailed in the
IFRS 15 IFRS 15 • Identification of performance obligations (when a promised explanations following this table.
good or service is distinct from other promises in the
contract).
• Differentiation of principal-agent relationships, application
guidance on the concept of the transfer of control in the
case of services provided by third parties.
• Clarification of the conditions for the timing of recognition of
revenue arising from the licensing of intellectual property.
Further simplifications for the transition to IFRS 15 were also
added.

To be applied by
Deutsche Telekom Impact on the presentation of Deutsche Telekom’s
Pronouncement Title from Changes results of operations and financial position
Amendments to Transfers of Investment Jan. 1, 2018 Clarification of transfers into or out of investment property. No material impact.
IAS 40 Property
Amendments to Classification and Jan. 1, 2018 Clarifications of classification and measurement of share-based No material impact.
IFRS 2 measurement of payment transactions.
share-based payment
transactions
Amendments to Applying IFRS 9 Jan. 1, 2018 Entities falling within the scope of IFRS 4 and whose pre No material impact.
IFRS 4 Financial Instruments dominant activity is issuing insurance contracts may, by way
with IFRS 4 Insurance of temporary exemption, defer application of IFRS 9 until such
Contracts time as the new standard for insurance contracts has come
into force. In the interim, such entities are thus subject to the
provisions of IAS 39. In the case of designated financial assets,
other entities falling within the scope of IFRS 4 may incur
differences in values depending on whether these assets are
to be accounted for in accordance with IFRS 9 or IAS 39; these
differences must be presented in other comprehensive income
instead of in profit or loss.
IFRIC 22 Foreign Currency Jan. 1, 2018 IFRIC 22 clarifies what exchange rate is to be applied on initial No material impact.
Transactions and recognition of a foreign-currency transaction in an entity’s
Advance Consideration functional currency in cases where the entity receives or pays
advance consideration before the related asset, expense or
income is recognized. The exchange rate for the underlying
asset, expense or income is taken as that prevailing on the
date of initial recognition of the non-monetary prepayment
asset or deferred income liability.
Annual Improve Annual Improve- Jan. 1, 2018 Clarification of many published standards. No material impact.
ments Project ments to IFRSs (IFRS 1 and IAS 28)
2014 – 2016 Cycle
In July 2014, the IASB issued IFRS 9 “Financial Instruments.” Applica- The new provisions on the accounting of impairment losses will lead

tion of the standard is mandatory for reporting periods beginning on or to expected losses having to be recognized earlier in some cases.
after January 1, 2018. The standard introduces new classification and There will be a minor increase in impairment losses due to applica-
measurement requirements for financial instruments and replaces, in tion of the simplified approach for trade receivables with a significant
particular, IAS 39. financing component and for lease assets, and to impairment losses
on contract assets recognized for the first time as of January 1, 2018
The new provisions and the related changes in the accounting principles in accordance with IFRS 15. Effects may arise in ongoing application
applied by Deutsche Telekom mainly comprise the following items of rel- from a change in business development (for example, changes in vol-
evance to Deutsche Telekom: umes or prices) or from changes to business models where these are
reflected in the amounts reported for long-term trade receivables and
Depending on the respective underlying business model, the new pro-
contract assets.
visions on the classification of financial assets give rise to changes in
measurement and presentation in some cases. The measurement of The hedging relationships are accounted for in accordance with the

debt instruments – especially trade receivables held for potential sale requirements of IFRS 9. The transition of existing hedging relation-
– at fair value through other comprehensive income with recycling to ships to the new regime has no material effects. Cash flow hedges
profit or loss has minor effects at the transition date. Effects may arise for hedging interest rate and currency risks have been de-designated
in ongoing application, particularly from changes in the volumes of re- and re-designated on the transition to IFRS 9 so that future use can
ceivables held for potential sale in the future. Equity instruments held be made of the opportunity to recognize the cost of hedging in other
are irrevocably allocated to a measurement category instrument by comprehensive income. The other hedging relationships will continue
instrument upon initial recognition. Deutsche Telekom in general mea- unchanged.
sures equity instruments held at fair value through other comprehen-
sive income without recycling to profit or loss (OCI option). Deutsche Telekom utilizes the option for simplified initial application.
The cumulative effect arising from the transition is recognized as an
adjustment to the opening balance of equity in the year of initial appli
cation. Prior-year comparatives are not adjusted; instead, Deutsche
Telekom provides an explanation of the reasons for the changes in
items in the statement of financial position and the income statement
for the current period.

The transition to IFRS 9 as of January 1, 2018 will result mainly in the fol- At the same time, it results in higher revenue from the sale of goods

lowing cumulative changes to retained earnings before deferred taxes – and merchandise and to lower revenue from the provision of services.
including the corresponding shares attributable to non-controlling inter-
ests: The extent of the changes resulting from the first-time application of

IFRS 15 that are described above therefore largely depends on the
business models used by the subsidiary in question. Whereas the sale
millions of € of subsidized handsets in connection with the conclusion of service
contracts in retail business is still common in the Germany segment,
Increase in impairment losses on trade receivables 115
Impairment losses on contract assets recognized for the first time in handsets are not sold at a discount at all, or only to a limited extent,
accordance with IFRS 15 27 in the United States and to some extent in the Europe operating seg-
142 ments; payment-by-installment models or leased models are offered to
customers instead.
For further information on first-time application of IFRS 9, please refer Customer activation fees and other advance one-time payments by

to the statements made under the disclosures on financial instruments, the customer that do not constitute consideration for a separate
page 46 et seq. performance obligation are classed as contract liabilities, and are
deferred and recognized as revenue over the (remaining) term of the
In May 2014, the IASB issued IFRS 15 “Revenue from Contracts with contract.
Customers.” Application of the standard is mandatory for reporting
periods beginning on or after January 1, 2018. This standard provides Expenses for sales commissions (costs of obtaining a customer con-

a single, principles-based five-step model for the determination and tract (contract costs)) must be capitalized and recognized over the
recognition of revenue to be applied to all contracts with customers. estimated customer retention period. The expenses are disclosed in
It replaces in particular IAS 18 “Revenue” and IAS 11 “Construction Deutsche Telekom’s income statement, not under depreciation and
Contracts” and has a material effect on the presentation of Deutsche amortization but – depending on the sales channel – as goods and
Telekom’s results of operations and financial position. Depending on services purchased or personnel costs.
the business model applied, the new provisions and the related changes
in the accounting principles applied by Deutsche Telekom affect the fol- In the indirect sales channel, reimbursements for handset subsidies

lowing issues in particular: granted by third-party retailers that are explicitly or implicitly included
in commission payments to these retailers are recognized not as an
In the case of multiple-element arrangements (e.g., mobile contract
expense but as a reduction of the service revenues over the contract
plus handset), the total transaction price of the bundled contract is term. This ensures that the amount of the service revenues generated
allocated among the individual, separate performance obligations with retail customers for identical rate plans does not depend on the
based on their relative standalone selling prices, i.e., based on a ra- type of sales channel.
tio of the standalone selling price of each element to the aggregated
standalone selling prices of the contractual performance obligations. On first-time application of the standard, both total assets and share-

In contrast to the previous accounting treatment, the relative stand- holders’ equity increase due to the capitalization of contract assets
alone selling price of an individual element and thus the revenue and contract costs for contracts not yet fully completed.
recognized for this unit of accounting is no longer limited to that pro-
portion of the total arrangement consideration to be provided by the In cases where “material rights” are granted – such as offering addi-

customer, the payment of which does not depend on the delivery of tional discounts for future purchases of further products – a portion
additional elements (contingent revenue cap). As a result, the reve- of the transaction price must be deferred as a contract liability and is
nue to be recognized for products delivered in advance (e.g., mobile not recognized as revenue until this additional performance obligation
handsets) that are sold at a subsidized price in combination with a has been satisfied or has lapsed.
long-term service contract was ultimately limited by this subsidized
price. Under IFRS 15, this limitation no longer applies, i.e., in the case Contract liabilities (which, as deferred revenue, were already recog-

of subsidized products delivered in advance, a larger portion of the nized as liabilities in the past) must be netted against the contract
total remuneration is attributable to the element delivered in advance assets for each customer contract.
(mobile handset), requiring earlier recognition of revenue under the
new regulations. This leads to the recognition of what is known as a For the purposes of determining whether Deutsche Telekom sells

contract asset – a receivable arising from the customer contract that products for its own account (principal = gross revenue) or for the
has not yet legally come into existence – in the statement of financial account of others (agent = net revenue), there are no material
position. The contract asset is deferred over the remaining contract changes for the existing agreements.
period, reducing revenue from the other performance obligations (in
this case: mobile service revenues) compared with the amounts billed.

As regards IFRS 15, Deutsche Telekom utilizes the following accounting A significant financing component is not considered for the amount

options: and timing of revenue recognition if the period between when a
promised good or service is transferred to the customer and when
Deutsche Telekom applies the option for simplified initial application,
the customer pays for that good or service will be one year or less.
limiting the retroactive application of IFRS 15 to contracts that have
not yet been completely fulfilled at the date of initial application. The In general, contract costs whose amortization period would not be

contracts that have not yet been completely fulfilled as of January 1, more than one year are immediately recognized as an expense.
2018 are accounted for as if they had been recognized in accordance
with IFRS 15 from the very beginning. The cumulative effect arising The adjustments made to items in the statement of financial position as
from the transition is recognized as an adjustment to the opening bal- of January 1, 2018 and attributable to IFRS 15 are as follows a:
ance of equity in the year of initial application. Prior-year comparatives
are not adjusted; instead, Deutsche Telekom provides an explanation
of the reasons for the changes in items in the statement of financial
position and the income statement for the current period as a result of
applying IFRS 15 for the first time.
millions of €
Carrying amount Carrying amount

in accordance with in accordance with
IAS 18/IAS 11 IFRS 15
Dec. 31, 2017 Remeasurements Reclassifications Jan. 1, 2018
ASSETS
CURRENT ASSETS
Trade and other receivables b 9,723 (163) (150) 9,410
Contract assets b ‒ 1,622 150 1,772
Current recoverable income taxes 236 (1) ‒ 235
Other assets 1,646 (43) ‒ 1,603
NON-CURRENT ASSETS
Capitalized contract costs ‒ 1,128 48 1,176
Deferred tax assets 4,013 27 ‒ 4,040
Other assets 819 (78) (48) 693
CURRENT LIABILITIES
Financial liabilities 8,358 9 (1) 8,366
Trade and other payables 10,971 0 (38) 10,933
Income tax liabilities 224 29 ‒ 253
Other provisions 3,372 (19) (48) 3,305
Other liabilities 4,440 (209) (1,612) 2,619
Contract liabilities ‒ 212 1,699 1,911
NON-CURRENT LIABILITIES
Deferred tax liabilities 6,967 663 ‒ 7,630
Other liabilities 3,831 (322) (212) 3,297
Contract liabilities ‒ 351 212 563
SHAREHOLDERS’ EQUITY
Retained earnings incl. carryforwards plus shares attributable to non-controlling interests c (27,013) 1,778 ‒ (25,235)
a The overview above contains only those items of the statement of financial position that are affected by first-time application of IFRS 15.
b
Carrying amounts as of January 1, 2018 are shown before impairment losses on contract assets recognized in accordance with IFRS 9. Please refer to the explanations in regard to the
initial application of IFRS 9 in this section.
c
For reasons of simplification, the figure is combined to show the cumulative effect of the transition to IFRS 15 to be recognized directly in equity.
The remeasurement effects are mainly attributable to the first-time rec- contract liabilities totaling EUR 0.6 billion that, under IFRS 15, would

ognition of have resulted in the later recognition of revenue.
contract assets in the amount of EUR 1.6 billion that, under IFRS 15,
After deferred tax liabilities totaling EUR 0.6 billion (net) were taken
would have resulted in the earlier recognition of revenue, in particular into account, the transition to the new standard as of January 1, 2018
from the sale of goods and merchandise; resulted in a cumulative effect that increased retained earnings by
EUR 1.8 billion and included the shares attributable to non-controlling
deferred contract costs of EUR 1.1 billion that, under IFRS 15, would
interests.
have resulted in the later recognition of selling expenses; and

The reclassifications mainly concern the following items: cash-generating units Romania and Poland in the Europe operating
segment and of the cash-generating unit Netherlands in the Group
The receivables from long-term construction contracts (EUR 0.2 bil-
Development operating segment exceeded in each case the recover-
lion) that, under IAS 11, were recognized under trade and other re- able amounts for these units. Consequently, the goodwill recognized
ceivables as of December 31, 2017 are classified as contract assets directly in equity in each case had to be impaired as of January 1, 2018
under IFRS 15. for an aggregate amount of EUR 0.1 billion. Please refer to the expla-
nations given in the notes on intangible assets and property, plant and
The deferred revenue of EUR 1.8 billion recognized under other liabil-
equipment, page 40.
ities as of December 31, 2017 is recognized as contract liabilities in
accordance with IFRS 15. Comparative figures for the items of the financial statements
affected by first-time application of IFRS 15
Due to the remeasurements described above, the carrying amounts The following tables contain relevant items from the financial state-
of the cash-generating units that must be tested for impairment in ments as of March 31, 2018 in accordance with IFRS 15 as well as the
accordance with IAS 36 increased when IFRS 15 was applied for the previous accounting treatment in accordance with IAS 18/IAS 11 and
first time on January 1, 2018. As a result, the carrying amounts of the related interpretations:
millions of €
IFRS 15 IAS 18/IAS 11

Mar. 31, 2018 Mar. 31, 2018 Change
ASSETS
CURRENT ASSETS
Trade and other receivables 9,121 9,458 (337)
Contract assets 1,728 0 1,728
Current recoverable income taxes 246 247 (1)
Other assets 2,122 2,186 (64)
NON-CURRENT ASSETS
Capitalized contract costs 1,286 0 1,286
Deferred tax assets 3,199 3,211 (12)
Other assets 902 1,006 (104)
CURRENT LIABILITIES
Financial liabilities 8,905 8,901 4
Trade and other payables 9,132 9,150 (18)
Income tax liabilities 307 299 8
Other provisions 3,082 3,144 (62)
Other liabilities 2,913 4,798 (1,885)
Contract liabilities 1,885 0 1,885
NON-CURRENT LIABILITIES
Deferred tax liabilities 7,078 6,363 715
Other liabilities 3,321 3,895 (574)
Contract liabilities 533 0 533
SHAREHOLDERS’ EQUITY
Retained earnings including carryforwards and net profit plus non-controlling interests (21,877) (23,720) 1,843
Under IAS 18/IAS 11, trade and other receivables would have included Under IAS 18/IAS 11, other liabilities would have included deferred reve-
receivables from long-term construction contracts, which are recog- nue, which, under IFRS 15, is either recognized as contract liabilities or
nized as contract assets under IFRS 15. netted with contract assets.
Due to the transition to IFRS 15, contract assets are recognized for the The differences in the amounts recognized under deferred tax assets
first time and amortized, and capitalized contract costs are recognized and deferred tax liabilities are due to remeasurement effects in connec-
as assets for the first time and amortized. tion with the first-time and continuing application of IFRS 15 in the first
quarter of 2018.

millions of €
IFRS 15 IAS 18/IAS 11

Q1 2018 Q1 2018 Change
NET REVENUE 17,924 17,997 (73)
Other operating income 373 373 0
Changes in inventories 1 1 0
Own capitalized costs 559 559 0
Goods and services purchased (8,718) (8,848) 130
Personnel costs (4,057) (4,080) 23
Other operating expenses (813) (821) 8
Depreciation, amortization and impairment losses (3,097) (3,097) 0
PROFIT (LOSS) FROM OPERATIONS 2,171 2,084 87
Finance costs (422) (423) 1
Share of profit (loss) of associates and joint ventures accounted for using the equity method 69 69 0
Other financial income (expense) (58) (59) 1
PROFIT (LOSS) FROM FINANCIAL ACTIVITIES (411) (413) 2
PROFIT (LOSS) BEFORE INCOME TAXES 1,760 1,671 89
Income taxes (494) (469) (25)
PROFIT (LOSS) 1,266 1,201 65
Without the effect of IFRS 15, revenue would have amounted to of-use assets will be carried in the amount of the lease liability, adjust-
EUR 18.0 billion, EUR 0.1 billion higher than reported. This effect is ed by the amount of the prepaid or accrued lease payments.
attributable mainly to amortization of the contract assets/liabilities rec-
ognized in the statement of financial position over the (remaining) con- As regards the options and exemptions permitted under IFRS 16, Deut-
tract period in the first quarter of 2018. This amortization is recognized sche Telekom is likely to take the following approach:
as a reduction or an increase in revenue. It also includes, in the indi-
rect sales channel, reimbursements for handset subsidies granted by Right-of-use assets and lease liabilities will be reported separately in

third-party retailers that are included in commission payments to these the statement of financial position.
retailers and are no longer recognized as an expense, but as a reduc-
tion of the service revenues over the contract term. The recognition, measurement and disclosure requirements of

IFRS 16 will also be applied in full to short-term leases and leases of
Adjusted for the effects of IFRS 15, goods and services purchased and low-value assets.
personnel costs would have come in at EUR 8.8 billion and EUR 4.1 bil-
lion, respectively, and would thus have been a total of EUR 0.2 billion A distinction will not be made in leases that contain both lease com-

higher. This effect is attributable to the capitalization of expenses for ponents and non-lease components. Each lease component will be
sales commissions, which, under IAS 18/IAS 11, would have been rec- accounted for together with other related performance components
ognized immediately in profit or loss either under goods and services as a lease.
purchased (dealer commissions) or personnel costs (employee com-
missions). It was only partially offset by the amortization of capitalized IFRS 16 will not be applied to the majority of leases for intangible

expenses for sales commissions in the first quarter of 2018. assets.
STANDARDS, INTERPRETATIONS, AND AMENDMENTS ISSUED, Depending on whether Deutsche Telekom is the supplier or the customer
BUT NOT YET TO BE APPLIED in an arrangement or on how the contractual facts have been designed
In January 2016, the IASB issued IFRS 16 “Leases.” The standard will in the various business models in our operating segments, the applica-
be effective for the first time for financial years beginning on or after tion of IFRS 16 will have the following material effects:
January 1, 2019. From the date of first-time adoption, the new lease
standard will have a material effect on Deutsche Telekom’s consolidated The lease payments largely relate to leases of cell sites (land, space

financial statements, particularly on the results of operations, net cash in cell towers or rooftop surface areas), network infrastructure, and
from operating activities, total assets, and the presentation of the finan- buildings used for administrative or technical purposes.
cial position.
In the future, payment obligations for operating leases – which, in

Deutsche Telekom will not apply the new lease standard retrospectively accordance with the existing regulations, must be disclosed in the
in full, but will make use of the corresponding exemption provisions for notes to the consolidated financial statements – will be reported as
lessees, also known as the modified retrospective method. On transi- right-of-use assets and lease liabilities.
tion to the new regulations, payment obligations from existing operating
leases (please also refer to the 2017 Annual Report, Note 33 “Leases” in Deutsche Telekom anticipates a significant increase in total assets

the notes to the consolidated financial statements, pages 226 and 227) and liabilities on first-time adoption due to the capitalization of right-
will be discounted using the relevant incremental borrowing rate. The of-use assets and the recognition of lease liabilities. The increase
resulting present value will be recognized as a lease liability. The right- in lease liabilities will lead to a corresponding increase in net debt.

Due to the significant amount of liabilities from straight-line leases CHANGES IN ACCOUNTING POLICIES AND CHANGES IN THE
in accordance with IAS 17, which in accordance with IFRS 16 must REPORTING STRUCTURE
be deducted from the right-of-use assets, the capitalized right-of-use With the exception of the standards, interpretations, and amendments
assets under IFRS 16 will be lower than the lease liabilities under of standards and interpretations that are effective for the first time in the
IFRS 16 by the amount of those straight-line lease liabilities (Note 14 financial year, Deutsche Telekom did not make any major changes in its
“Other liabilities” in the notes to the consolidated financial state- accounting policies.
ments in the 2017 Annual Report, page 206).
Vivento Customer Services GmbH, a provider of call center services,
Going forward, depreciation charges and interest expense – rather
has been assigned to the Germany operating segment since January 1,
than lease expense – will be reported in the income statement. This 2018; previously it was part of the Group Headquarters & Group Ser-
will give rise to a significant improvement in EBITDA. vices segment. Comparative figures have been adjusted retrospectively.
In the statement of cash flows, the repayment portion of the lease

CHANGES IN THE COMPOSITION OF THE GROUP, TRANSACTIONS
payments from existing operating leases will reduce net cash from/ WITH OWNERS, AND OTHER TRANSACTIONS
used in financing activities and no longer affect net cash from oper- In the first quarter of 2018, Deutsche Telekom conducted the following
ating activities. Only the interest payments will remain in net cash transactions, which have an impact on the composition of the Group.
from operating activities, the total of which will rise. Other changes to the composition of the Group not shown here were
of no material significance for Deutsche Telekom’s interim consolidated
For Deutsche Telekom as a lessor, the number of identified leases will
financial statements.
change. This does not affect the contracts for routers or similar hard-
ware provided to customers as part of data and network solutions or Acquisition of Layer3 TV Inc.
contracts for handsets and SmartHome network solutions provided The agreement signed by T-Mobile US on November 9, 2017 to acquire
to customers. It is expected that these will continue to be defined 100 percent of the shares in online TV provider Layer3 TV Inc. was con-
as leases. In fact, the number of contracts for modems/routers for summated on January 22, 2018. T-Mobile US expects the acquisition to
the latest generation of devices provided to consumers as part further strengthen its TV and video portfolio, and its plans include rolling
of fixed-network mass-market contracts is expected to decrease. out its own TV service in 2018. The consideration paid at the acquisi-
Deutsche Telekom is still analyzing whether contracts related to tion date amounts to EUR 0.3 billion in cash. Given the proximity of the
services provided in data centers and in connection with whole- transaction to the reporting date (March 31, 2018), the purchase price
sale fixed-network customers contain lease components or not. allocation must be considered provisional.
The full effects of IFRS 16 will be analyzed as part of a Group-wide The provisional fair values of the acquired assets and liabilities recog-
project for implementing the new standard. Given the complexity and nized at the acquisition date mainly relate to an identifiable intangible
the large number of different business models as well as the relevant asset of EUR 0.1 billion in connection with technology developed by
transaction volumes, it is not currently possible to provide a firm esti- Layer3 TV. This asset will be amortized over an expected useful life of
mate of the quantitative effects. five years. Goodwill of EUR 0.2 billion was recognized for the differ-
ence between the consideration paid and the balance of the identi-
Readers are also referred to the Disclaimer at the end of this report as fiable assets acquired and the liabilities assumed at the acquisition
regards the forward-looking statements contained in this section; the date, measured at provisional fair value. This item is based mainly on
latter reflect the current views of the management of Deutsche Telekom the industry expertise of the acquired management team as well as the
with regard to future events. other non-separable intangible assets identified. Under local tax law,
this goodwill is not recognized and is thus not tax-deductible.
For more information on standards, interpretations, and amendments
that have been issued but not yet applied, as well as disclosures on the OTHER TRANSACTIONS THAT HAD NO EFFECT ON THE
recognition and measurement of items in the statement of financial po- COMPOSITION OF THE GROUP
sition and discretionary decisions and estimation uncertainties, please T-Mobile US share buy-back program
refer to the section “Summary of accounting policies” in the notes to As part of the program launched by T-Mobile US at the end of 2017 ‒
the consolidated financial statements in the 2017 Annual Report, page which will run until the end of 2018 and under which ordinary shares
153 et seq. in the company totaling up to USD 1.5 billion could be bought back ‒
ordinary shares in the amount of USD 1.1 billion had been bought back
as of March 31, 2018. Of this figure, USD 0.7 billion (EUR 0.5 billion) is
attributable to the first quarter of 2018. In addition, in the first quarter of
2018 Deutsche Telekom purchased shares in T-Mobile US on the capital
market totaling USD 0.2 billion (EUR 0.2 billion). As a result, Deutsche
Telekom holds around 63 percent of the shares in T-Mobile US.

Acquisition of OTE shares pairment losses, on the one hand, and negative exchange rate effects,
In March 2018, Deutsche Telekom exercised its right of first refusal as on the other – especially from the translation of U.S. dollars into euros –
invited by the Greek privatization authority Hellenic Republic Asset each decreased the carrying amount by EUR 1.0 billion.
Development Fund (HRADF) and acquired a five-percent stake in its
Greek subsidiary OTE. It will purchase additional shares in the amount The first-time application of IFRS 15 as of January 1, 2018 produced
of EUR 0.3 billion, subsequently holding around 45 percent of the effects that reduced the carrying amount of intangible assets by
shares in OTE. The transaction is expected to be closed in the second EUR 0.1 billion. Under the new accounting standard, contract assets
quarter of 2018. must be capitalized for the first time. For detailed information on the
requirements and the effects of first-time application of the standard,
SELECTED NOTES TO THE CONSOLIDATED STATEMENT OF please refer to the section “Accounting policies,” page 33 et seq. An ini-
FINANCIAL POSITION tial consequence was that the carrying amounts of the cash-generating
TRADE AND OTHER RECEIVABLES units that must be tested for impairment in accordance with IAS 36 in-
Trade and other receivables decreased by EUR 0.6 billion to EUR 9.1 bil- creased when IFRS 15 was applied for the first time on January 1, 2018.
lion, primarily due to a reduction in the volume of receivables, especially As a result, the carrying amounts of the cash-generating units Romania
in the United States operating segment. Exchange rate effects, primarily and Poland in the Europe operating segment and of the cash-generating
from the translation from U.S. dollars into euros, also reduced the carry- unit Netherlands in the Group Development operating segment exceeded
ing amounts. Receivables from long-term construction contracts in the in each case the recoverable amounts for these units. Consequently,
amount of EUR 0.2 billion, previously accounted for in accordance with the goodwill recognized for these units had to be impaired as of Janu-
IAS 11, were reclassified as contract assets on the transition to IFRS 15 ary 1, 2018. The recoverable amounts of these three units, along with
as of January 1, 2018. the relevant valuation methods and the assumptions and parameters on
which they are based, are described in the 2017 Annual Report, Note
CONTRACT ASSETS 5 “Intangible assets,” page 180 et seq. The recoverable amount for the
Following the transition to IFRS 15, a remeasurement effect of cash-generating unit Romania was EUR 10 million below its carrying
EUR 1.6 billion was recognized directly in equity as of January 1, 2018 amount as of January 1, 2018; the corresponding figure for the Poland
in relation to the initial recognition of contract assets. In prior periods, unit was EUR 19 million below the carrying amount, and for the Nether-
under IFRS 15, these would have led to the earlier recognition of reve- lands unit EUR 68 million below the carrying amount. The correspond-
nue, in particular from the sale of goods and merchandise. Further, as a ing goodwill impairments for these units were recognized directly in
result of the transition, receivables from long-term construction contracts equity by reducing retained earnings as of January 1, 2018.
in the amount of EUR 0.2 billion, which were previously recognized as
trade and other receivables, were reclassified as contract assets. The Property, plant and equipment decreased by EUR 0.3 billion compared
carrying amount of the contract assets had changed to EUR 1.7 billion with December 31, 2017 to EUR 46.6 billion. Additions of EUR 2.3 bil-
as of March 31, 2018. For more information, please refer to the section lion, primarily in the United States and Germany operating segments, in-
“Accounting policies,” page 33 et seq. creased the carrying amount. These included, in particular, investments
in connection with the modernization of the T-Mobile US 4G/LTE net-
INVENTORIES work and the broadband/fiber-optic build-out in the Germany operating
At EUR 1.8 billion, inventories were down EUR 0.2 billion compared with segment. A further EUR 0.3 billion was attributable to the capitalization
December 31, 2017, mainly due to lower inventories of terminal equip- of higher-priced mobile handsets in connection with the JUMP! On De-
ment (especially higher-priced smartphones) at T-Mobile US and to the mand business model introduced at T-Mobile US, under which custom-
negative exchange rate effects from the translation of U.S. dollars to ers do not purchase the device but lease it. Depreciation in the amount
euros. of EUR 2.1 billion and negative exchange rate effects of EUR 0.4 billion,
primarily from the translation of U.S. dollars into euros, reduced the car-
NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE rying amount. Disposals in the amount of EUR 0.2 billion also decreased
At the reporting date, the carrying amount of non-current assets and the carrying amount, with EUR 0.1 billion of that figure being attribut-
disposal groups held for sale decreased by EUR 0.1 billion to EUR 0.1 bil able to terminal equipment returned by customers under the JUMP! On
lion. This decrease was mainly attributable to the sale of real estate in Demand program.
the Group Headquarters & Group Services segment.
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT

Intangible assets decreased by EUR 0.9 billion to EUR 62.0 billion. Ad-
ditions totaling EUR 0.9 billion increased the carrying amount. Changes
in the composition of the Group in the amount of EUR 0.4 billion –
mainly from the acquisition of online TV provider Layer3 TV in the United
States operating segment – also increased the carrying amount. On
the acquisition date, an identifiable intangible asset of EUR 0.1 billion
in connection with technology developed by Layer3 TV, and goodwill
of EUR 0.2 billion were recognized. Depreciation, amortization and im-

CAPITALIZED CONTRACT COSTS FINANCIAL LIABILITIES

Following the transition to IFRS 15, a remeasurement and reclassifi- Current and non-current financial liabilities increased by EUR 0.2 bil-
cation effect of EUR 1.2 billion was recognized directly in equity as of lion to EUR 57.7 billion compared with the end of 2017.
January 1, 2018 in relation to the initial recognition of capitalized con-
tract costs. Under IFRS 15, these costs would have resulted in the later In January 2018, T-Mobile US placed fixed-interest U.S. dollar bonds with
recognition of selling expenses in earlier reporting periods. The carrying a volume of USD 2.5 billion (around EUR 2.0 billion) with institutional
amount had changed to EUR 1.3 billion as of March 31, 2018. For more investors: an 8-year bond with a volume of USD 1.0 billion and a coupon
information, please refer to the section “Accounting policies,” page 33 et of 4.500 percent and a 10-year bond with a volume of USD 1.5 billion
seq. and a coupon of 4.750 percent.
OTHER FINANCIAL ASSETS A contrary effect in the reporting period was attributable to T-Mobile
Other financial assets decreased from EUR 9.0 billion (as of Decem- US’ premature repayment of senior notes (which were not due until
ber 31, 2017) to EUR 4.7 billion. 2022) in the amount of USD 1.0 billion (around EUR 0.8 billion), with
an interest rate of 6.125 percent at a price of 103.063 percent of the
On March 23, 2018, the 12 percent stake in BT, which is worth EUR 3.1 bil- nominal amount.
lion, was transferred to the Group’s own trust, Deutsche Telekom Trust
e.V., where it will serve as plan assets to cover pension entitlements. In addition, euro bonds for a total amount of EUR 1.1 billion were
The impairment loss on the exchange-traded stake in BT – which was repaid by the Group in the reporting period. The net change of
recognized in other comprehensive income for the period from Janu- EUR 0.8 billion in commercial paper also decreased the carrying
ary 1, 2018 until the date of transfer – reduced the carrying amount by amount of the financial liabilities.
EUR 0.7 billion.
The increase of EUR 1.0 billion in liabilities to banks compared with the
TRADE AND OTHER PAYABLES end of 2017 was mainly due to the positive net change of EUR 1.1 billion
Trade and other payables decreased by EUR 1.8 billion to EUR 9.1 bil- in the balance of short-term borrowings and to the loan issued by the
lion. This decline was attributable to the reduction in liabilities, especially European Investment Bank in January 2018, with a volume of EUR 0.2 bil-
at the United States, Europe and Germany operating segments, and to lion and a term of 7 years. Repayments in the reporting period had an
the effects of the translation of U.S. dollars into euros. offsetting effect.
OTHER LIABILITIES A year-on-year decrease in the carrying amount of the financial liabil-
Current and non-current other liabilities decreased by EUR 2.0 billion ities of around EUR 0.4 billion relates to exchange rate effects in the
to EUR 6.2 billion. The main reason for this decline were the reclassifi- United States operating segment.
cation effects triggered by the transition to IFRS 15: deferred revenue
of EUR 1.8 billion, previously recognized under other liabilities, was The following table shows the composition and maturity structure of
reclassified as contract liabilities. For further information on application financial liabilities as of March 31, 2018:
of the new accounting standard, please refer to the section “Accounting
policies,” page 33 et seq.
millions of €
Due Due Due

Mar. 31, 2018 within 1 year >1 ≤ 5 years > 5 years
Bonds and other securitized liabilities 44,261 3,020 16,333 24,908
Liabilities to banks 5,989 2,354 2,771 863
Finance lease liabilities 2,525 768 1,192 565
Liabilities to non-banks from promissory notes 536 204 53 279
Other interest-bearing liabilities 1,847 1,274 429 144
Other non-interest-bearing liabilities 1,326 1,228 94 1
Derivative financial liabilities 1,220 56 117 1,048
FINANCIAL LIABILITIES 57,704 8,905 20,989 27,807
CONTRACT LIABILITIES mainly comprise deferred revenue that was recognized under other
Following the transition to IFRS 15, a remeasurement effect of EUR 0.6 bil- liabilities as of December 31, 2017. The carrying amount for current and
lion was recognized directly in equity as of January 1, 2018 in relation non-current contract liabilities had changed to EUR 2.4 billion as of the
to the initial recognition of contract liabilities, which would have resulted end of the first quarter of 2018. For more information, please refer to the
in the later recognition of revenue in earlier reporting periods under section “Accounting policies,” page 33 et seq.
IFRS 15. In addition, a total of EUR 1.9 billion was reclassified as con-
tract liabilities in accordance with IFRS 15. These reclassifications

PROVISIONS FOR PENSIONS AND OTHER EMPLOYEE BENEFITS OTHER OPERATING INCOME
Provisions for pensions and other employee benefits decreased from
EUR 8.4 billion as of December 31, 2017 to EUR 5.3 billion. The main millions of €
reason for this decline was the transfer, on March 23, 2018, of the
Q1 2018 Q1 2017
12 percent stake in BT (valued at EUR 3.1 billion) to the Group’s own
Income from the reversal of impairment losses
trust, Deutsche Telekom Trust e.V., where it will serve as plan assets. on non-current assets 2 ‒
Due to the netting of the present value of the pension obligations with Of which: IFRS 5 ‒ ‒
the plan assets, the increase in external cover led to a reduction in provi- Income from the disposal of non-current assets 106 67
sions for pensions and other employee benefits. For more information on Income from reimbursements 41 53
Income from insurance compensation 91 17
the Global Pension Policy and a description of the plan, please refer to
Income from ancillary services 6 7
page 200 et seq. of the 2017 Annual Report.
Miscellaneous other operating income 126 626
Of which: income from divestitures and from
SELECTED NOTES TO THE CONSOLIDATED INCOME STATEMENT the sale of stakes accounted for
using the equity method ‒ 519
NET REVENUE
373 770
Net revenue breaks down into the following revenue categories:
millions of € Income from the disposal of non-current assets was attributable to the
disposal of real estate previously recognized as non-current assets and
Q1 2018 Q1 2017
disposal groups held for sale. Income from insurance compensation
Revenue from the rendering of services 14,841 15,744
mainly comprised compensation payments received by T-Mobile US in
Germany 4,372 4,552
United States 6,484 7,015
the first quarter of 2018 for damage caused by hurricanes in 2017. Mis-
Europe 2,364 2,406 cellaneous other operating income decreased by EUR 0.5 billion year-on-
Systems Solutions 1,300 1,358 year. In the prior-year period, this mainly included income of EUR 0.5 bil-
Group Development 307 374 lion from the deconsolidation of Strato AG.
Group Headquarters & Group Services 15 40
Revenue from the sale of goods and
merchandise 2,769 2,452 OTHER OPERATING EXPENSES
Germany 498 413
United States 1,827 1,663 millions of €
Europe 353 278
Systems Solutions 22 20 Q1 2018 Q1 2017
Group Development 69 70 Impairment losses on financial assets a (106) n. a.
Group Headquarters & Group Services 0 8 Gains (losses) from the write-off of financial
Revenue from the use of entity assets by assets measured at amortized cost (10) n. a.
others 314 450 Other (697) (761)
Germany 117 103 Legal and audit fees (76) (51)
United States 145 304 Losses from asset disposals (42) (34)
Europe 10 11 Income (losses) from the measurement of
Systems Solutions 10 (9) factoring receivables (30) (30)
Group Development ‒ ‒ Income (losses) from measurement of
receivables a n. a. (159)
Group Headquarters & Group Services 33 40
Other taxes (156) (137)
NET REVENUE 17,924 18,646
Cash and guarantee transaction costs (84) (82)
Insurance expenses (20) (21)
For details of changes in net revenue, please refer to the section “De- Miscellaneous other operating expenses (405) (247)
velopment of business in the Group” in the interim Group management (813) (761)
report, page 9 et seq. a Due to the transition to IFRS 9, changes were made both to the method of measuring
impairment losses on receivables and to their disclosure in the financial statements. A
comparison with the prior period is possible to a limited extent only.
Miscellaneous other operating expenses include a large number of indi-

vidual items accounting for marginal amounts.

DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES OTHER DISCLOSURES

Depreciation, amortization and impairment losses decreased by a total NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
of EUR 0.1 billion to EUR 3.1 billion. This decline resulted mainly from Net cash from operating activities
slightly lower overall levels of amortization of intangible assets and de- Net cash from operating activities declined by EUR 0.1 billion year-on-
preciation of property, plant and equipment. year to EUR 4.3 billion. Exchange rate effects weighed on the continuing
positive business trend in the United States operating segment. Fac-
PROFIT/LOSS FROM FINANCIAL ACTIVITIES toring agreements – especially in the Germany and Systems Solutions
Other financial expense decreased by EUR 1.3 billion year-on-year to operating segments – resulted in positive effects of EUR 0.3 billion on
EUR 0.1 billion. This decrease was due, in particular, to the fact that net cash from operating activities in the reporting period. The effect
the prior-year figure contained a EUR 0.7 billion impairment of the fi- from factoring agreements in the prior-year period totaled EUR 0.4 bil-
nancial stake in BT, which was recognized in profit or loss. lion. In addition to a dividend payment of EUR 0.1 billion from BT (which
was also included in the prior-year period), dividend payments totaling
In March 2018, the financial stake in BT was transferred to Deutsche EUR 0.1 billion from Scout Lux and Toll Collect had a positive effect on
Telekom Trust e.V., where it will be used as plan assets to cover existing net cash from operating activities. A EUR 0.4 billion decrease in net in-
pension obligations. As a consequence of the transition to IFRS 9 as terest payments enhanced net cash from operating activities.
of January 1, 2018, changes in the value of the financial stake prior to
the transfer date were no longer recognized in the income statement Net cash used in investing activities
as profit/loss from financial activities, but in other comprehensive in-
come. For more information, please refer to the disclosures on financial millions of €
instruments, page 46 et seq. In March 2018, the shareholders of the

Q1 2018 Q1 2017
equity-accounted joint venture Toll Collect resolved to distribute a
Cash capex
dividend, EUR 0.1 billion of which was paid to Deutsche Telekom. In
Germany operating segment (1,145) (1,005)
the first quarter of 2018, negative remeasurement effects from the exer- United States operating segment (1,143) (1,442)
cise and measurement of embedded derivatives at T-Mobile US – mainly Europe operating segment (438) (475)
relating to the early repayment of external financial liabilities – increased Systems Solutions operating segment (83) (86)
the loss from financial activities by EUR 0.1 billion. In the prior-year Group Development operating segment (85) (81)
period, this negative effect on the loss from financial activities totaled Group Headquarters & Group Services (248) (242)
Reconciliation 3 51
EUR 0.6 billion.
(3,139) (3,280)
Net cash flows for collateral deposited and
INCOME TAXES hedging transactions (267) (334)
A tax expense of EUR 0.5 billion was recognized in the first quarter of Cash outflows for the acquisition of shares in
Layer3 TV a (253) ‒
2018. The effective tax rate of 28 percent essentially reflects the shares Proceeds from the disposal of property, plant
of the different countries in the profit before income taxes and their re- and equipment, and intangible assets 161 118
spective national tax rates. Cash flows from the loss of control of subsidiar-
ies and associates b (61) ‒
Acquisition/sale of government bonds, net ‒ 5
In the prior-year period, tax income of EUR 0.1 billion was recognized Other (84) ‒
for pre-tax income that was likewise positive. This was attributable, in (3,643) (3,491)
particular, to the recognition of deferred tax assets of EUR 0.2 billion on
a Includes,
in addition to the purchase price of EUR 255 million, inflows of cash and cash
federal loss carryforwards in the United States and to tax reductions for equivalents in the amount of EUR 2 million.
a comparable amount for previous years in Germany. b Relatesto outflows of cash and cash equivalents in connection with the transfer of the
stake in BT as plan assets to Deutsche Telekom Trust e.V.
Cash capex decreased by EUR 0.2 billion to EUR 3.1 billion. In the re-
porting period, mobile spectrum licenses were acquired for total cash
of EUR 0.1 billion, primarily in the United States operating segment.
The prior-year figure included a total of EUR 35 million for the acqui-
sition of mobile spectrum licenses, also predominantly for the United
States operating segment. While cash capex for broadband/fiber-optic
build-out in the Germany operating segment was EUR 0.1 billion higher
year-on-year, cash capex in the United States operating segment was
EUR 0.3 billion lower. Adjusted for exchange rate effects, cash capex
would have been on par with the prior-year period.

Net cash used in/from financing activities Consideration for the acquisition of broadcasting rights will be paid by
Deutsche Telekom in accordance with the terms of the contract on the
millions of € date of its conclusion or spread over the term of the contract. Finan-
cial liabilities of EUR 0.1 billion were recognized in the first quarter of
Q1 2018 Q1 2017
2018 for future consideration for acquired broadcasting rights (Q1 2017:
Repayment of bonds (1,898) (4,424)
EUR 0.1 billion). As soon as the payments have been made, they are
Dividends (including to non-controlling
interests) ‒ (1) disclosed under net cash used in/from financing activities.
Repayment of EIB loans (80) (57)
Net cash flows for collateral deposited and In the United States operating segment, an amount of EUR 0.3 billion
hedging transactions 12 208
Repayment of lease liabilities (205) (196)
was recognized for mobile devices under property, plant and equip-
Repayment of financial liabilities for media ment in the reporting period (Q1 2017: EUR 0.2 billion). These relate
broadcasting rights (80) (62) to the JUMP! On Demand business model at T-Mobile US, under which
Cash flows from continuing involvement
factoring, net 21 (5)
customers do not purchase the device but lease it. The payments are
Loans taken out with the EIB 150 ‒ presented under net cash from operating activities.
Promissory notes, net 50 ‒
Secured loans ‒ (1,863) Following transfer of the financial stake in BT Group to Deutsche
Issuance of bonds 2,266 8,148 Telekom Trust e.V. in the first quarter of 2018, a non-cash transfer of
Commercial paper, net (707) (572)
EUR 3.0 billion to plan assets was made in order to increase external
Overnight borrowings from banks 1,117 ‒
Cash inflows from transactions with
capital funding; this reduced the provisions for pensions recognized in
non-controlling entities the statement of financial position.
T-Mobile US stock options 1 14
1 14 SEGMENT REPORTING
Cash outflows from transactions with
non-controlling entities The following table gives an overall summary of Deutsche Telekom’s
T-Mobile US share buy-back (603) (87) operating segments and the Group Headquarters & Group Services seg-
Acquisition of T-Mobile US shares (162) ‒ ment for the first quarters of 2018 and 2017.
Other (5) (1)
(770) (88) Vivento Customer Services GmbH, a provider of call center services,
Other (171) (122)
has been assigned to the Germany operating segment since January 1,
(294) 980
2018; previously it was part of the Group Headquarters & Group Ser-
vices segment. Comparative figures have been adjusted retrospectively.
Non-cash transactions in the consolidated statement of cash flows In accordance with the Company’s own principles of segment manage-
In the first quarter of 2018, Deutsche Telekom chose financing options ment, when loans with embedded derivatives are granted internally to
totaling EUR 0.2 billion under which the payments for trade payables Group entities, the derivative component is recognized separately in
from operating and investing activities primarily become due at a later the creditor company’s financial statements and measured at fair value
point in time by involving banks in the process (Q1 2017: EUR 0.3 bil- through profit or loss.
lion). These payables will subsequently be recognized under financial
liabilities in the statement of financial position. As soon as the payments For details on the development of operations in the operating segments
have been made, they are disclosed under net cash used in/from fi- and the Group Headquarters & Group Services segment, please refer to
nancing activities. the section “Development of business in the operating segments” in the
interim Group management report, page 15 et seq.
In the first quarter of 2018, Deutsche Telekom leased network equip-
ment (classified as a finance lease) for a total of EUR 0.2 billion (Q1
2017: EUR 0.3 billion). The finance lease is subsequently also shown
under financial liabilities in the statement of financial position. Future
repayments of the liabilities will be recognized in net cash used in/
from financing activities.

Segment information in the first quarter

millions of €
Comparative period Reporting date

Investments
Profit (loss) accounted
from Depreciation for using
Net Intersegment Total operations and Impairment Segment Segment the equity
revenue revenue revenue (EBIT) amortization losses assets liabilities method
Germany Q1 2018 4,987 338 5,325 935 (980) ‒ 35,257 26,416 12
Q1 2017 5,069 328 5,397 1,071 (935) ‒ 33,739 26,641 12
United States Q1 2018 8,455 ‒ 8,455 1,137 (1,223) ‒ 64,467 41,706 147
Q1 2017 8,982 ‒ 8,982 1,003 (1,387) ‒ 64,931 42,003 189
Europe Q1 2018 2,727 84 2,811 345 (559) ‒ 25,460 9,408 63
Q1 2017 2,695 86 2,781 324 (552) (1) 25,746 10,206 62
Systems Solutions Q1 2018 1,332 333 1,665 (76) (95) ‒ 5,720 4,465 21
Q1 2017 1,369 335 1,704 (37) (98) ‒ 6,408 5,061 31
Group Development Q1 2018 376 152 528 148 (78) ‒ 6,431 5,727 318
Q1 2017 444 151 595 686 (71) ‒ 9,997 5,549 346
Group Headquarters & Q1 2018 48 603 651 (324) (159) (4) 47,407 53,341 11
Group Services Q1 2017 88 647 735 (276) (147) (1) 46,957 55,863 11
TOTAL Q1 2018 17,924 1,511 19,435 2,165 (3,094) (4) 184,742 141,063 572
Q1 2017 18,646 1,547 20,194 2,770 (3,190) (2) 187,778 145,323 651
Reconciliation Q1 2018 ‒ (1,511) (1,511) 6 1 ‒ (46,717) (46,729) (1)
Q1 2017 ‒ (1,547) (1,547) 1 1 ‒ (46,444) (46,459) ‒
GROUP Q1 2018 17,924 ‒ 17,924 2,171 (3,093) (4) 138,025 94,334 571
Q1 2017 18,646 ‒ 18,646 2,771 (3,189) (2) 141,334 98,864 651
CONTINGENT LIABILITIES FUTURE OBLIGATIONS FROM OPERATING LEASES AND OTHER

This section provides additional information and explains recent changes FINANCIAL OBLIGATIONS
in the contingent liabilities as described in the consolidated financial The following table provides an overview of Deutsche Telekom’s ob-
statements for the 2017 financial year. ligations from operating leases and other financial obligations as of
March 31, 2018:
Claims relating to charges for the shared use of cable ducts. In con-
nection with legal proceedings brought by Unitymedia Hessen GmbH &
Co. KG, Unitymedia NRW GmbH, and Kabel BW GmbH, an appeal filed millions of €
by the plaintiffs was rejected by the Düsseldorf Higher Regional Court

Mar. 31, 2018
in its ruling of March 14, 2018. An appeal was not permitted. This deci-
Future obligations from operating leases 15,397
sion is not final and legally binding.
Purchase commitments regarding property, plant and equipment 3,215
Purchase commitments regarding intangible assets 441
Firm purchase commitments for inventories 4,426
Other purchase commitments and similar obligations 13,743
Payment obligations to the Civil Service Pension Fund 2,652
Purchase commitments for interests in other companies 2,888
Miscellaneous other obligations ‒
42,762

DISCLOSURES ON FINANCIAL INSTRUMENTS
Carrying amounts, amounts recognized, and fair values by class and measurement category
millions of €
Amounts recognized in the statement of financial
position in accordance with IFRS 9
Fair value Fair value Amounts
through through recognized
other com- other com- in the
prehensive prehensive statement
Category income income of financial
in accor- Carrying without with Fair value position in
dance amount recycling recycling through accor- Fair value
with Mar. 31, Amortized to profit or to profit or profit or dance with Mar. 31,
IFRS 9 2018 cost loss loss loss IAS 17 2018 a

ASSETS
Cash and cash equivalents AC 3,618 3,618 ‒
Trade receivables
At amortized cost AC 3,939 3,939 ‒
At fair value through other comprehensive income FVOCI 5,166 5,166 4,741
At fair value through profit or loss FVTPL 16 16 16
Other financial assets
Originated loans and other receivables
At amortized cost AC 2,907 2,907 2,938
Of which: collateral paid AC 831 831 ‒
At fair value through other comprehensive income FVOCI 2 2 2
At fair value through profit or loss FVTPL 14 14 14
Equity instruments
At fair value through other comprehensive income FVOCI 385 385 385
Derivative financial assets
Derivatives without a hedging relationship FVTPL 1,125 1,125 1,125
Of which: termination rights embedded in bonds issued FVTPL 238 238 238
Of which: energy forward agreements embedded in contracts FVTPL ‒ ‒
Derivatives with a hedging relationship n. a. 147 52 95 147
Lease assets n. a. 160 160 ‒
LIABILITIES
Trade payables AC 9,132 9,132 ‒
Bonds and other securitized liabilities AC 44,261 44,261 48,508
Liabilities to banks AC 5,989 5,989 6,063
Liabilities to non-banks from promissory notes AC 536 536 630
Other interest-bearing liabilities AC 1,847 1,847 1,901
Of which: collateral received AC 635 635 ‒
Other non-interest-bearing liabilities AC 1,326 1,326 ‒
Finance lease liabilities n. a. 2,525 2,525 2,764
Derivative financial liabilities
Derivatives without a hedging relationship FVTPL 289 289 289
Of which: options granted to third parties for the purchase of shares
in subsidiaries and associates FVTPL 10 10 10
Of which: energy forward agreements embedded in contracts FVTPL 54 54 54
Of which: aggregated by category in accordance with IFRS 9
ASSETS
Financial assets carried at amortized cost AC 10,464 10,464 2,938
Financial assets at fair value through other comprehensive income with
recycling to profit or loss FVOCI 5,168 5,168 4,743
Financial assets at fair value through other comprehensive income
without recycling to profit or loss FVOCI 385 385 385
Financial assets at fair value through profit or loss FVTPL 1,155 1,155 1,155
LIABILITIES
Financial liabilities carried at amortized cost AC 63,091 63,091 57,101
Financial liabilities at fair value through profit or loss FVTPL 289 289 289
The exemption provisions under IFRS 7.29a were applied for information on specific fair values.
a

Trade receivables include receivables amounting to EUR 1.8 billion

(December 31, 2017: EUR 1.6 billion) due in more than one year. The
fair value generally equals the carrying amount.
Carrying amounts, amounts recognized, and fair values by class and measurement category
millions of €
Amounts recognized in the statement of financial

position in accordance with IAS 39
Amounts
recognized
in the
statement
Carrying Fair value Fair value of financial
Category in amount recognized through position in Fair value
accordance Dec. 31, Amortized directly in profit or accordance Dec. 31,
with IAS 39 2017 cost Cost equity loss with IAS 17 2017 a

ASSETS
Cash and cash equivalents LaR 3,312 3,312 ‒
Trade receivables LaR 9,553 9,553 ‒
Originated loans and receivables LaR/n. a. 3,507 3,354 153 3,539
Of which: collateral paid LaR 504 504 ‒
Other non-derivative financial assets
Held-to-maturity investments HtM 5 5 ‒
Available-for-sale financial assets AfS 4,216 187 4,029 4,029
Derivatives without a hedging relationship FAHfT 1,103 1,103 1,103
Of which: termination rights embedded in bonds issued FAHfT 351 351 351
Of which: energy forward agreements embedded in contracts FAHfT - ‒
LIABILITIES
Trade payables FLAC 10,934 10,934 ‒
Bonds and other securitized liabilities FLAC 45,453 45,453 50,472
Liabilities to banks FLAC 4,974 4,974 5,062
Liabilities to non-banks from promissory notes FLAC 480 480 582
Liabilities with the right of creditors to priority repayment in the event of
default FLAC ‒ ‒ ‒
Other interest-bearing liabilities FLAC 1,598 1,598 1,629
Of which: collateral received FLAC 569 569 ‒
Other non-interest-bearing liabilities FLAC 1,443 1,443 ‒
Finance lease liabilities n. a. 2,635 2,635 2,635 2,893
Derivatives without a hedging relationship FLHfT 337 337 337
Of which: conversion rights embedded in Mandatory Convertible
Preferred Stock FLHfT ‒ ‒ ‒
Of which: options granted to third parties for the purchase of
shares in subsidiaries FLHfT 10 10 10
Of which: energy forward agreements embedded in contracts FLHfT 46 46 46
Derivative financial liabilities directly associated with non-current assets
and disposal groups held for sale FLHfT ‒ ‒ ‒
Of which: aggregated by category in accordance with IAS 39
Loans and receivables LaR 16,219 16,219 3,386
Held-to-maturity investments HtM 5 5 ‒
Available-for-sale financial assets AfS 4,216 187 4,029 4,029
Financial assets held for trading FAHfT 1,103 1,103 1,103
Financial liabilities measured at amortized cost FLAC 64,882 64,882 57,745
Financial liabilities held for trading FLHfT 337 337 337
a The exemption provisions under IFRS 7.29a were applied for information on specific fair values.

The portfolio of financial assets by measurement category in accor-

dance with IAS 39 is reconciled to the IFRS 9 measurement categories
as follows:
Reconciliation of financial assets from IAS 39 to IFRS 9

millions of €
Reclassifi- Effect to be
Carrying cation Carrying recognized Allowances
amount to other amount in retained in other
Dec. 31, compre- Jan. 1, earnings compre-
2017 Reclassifi- hensive Remeasure- 2018 Jan. 1, hensive
(IAS 39) cation a income ments b (IFRS 9) 2018 c income c
AT FAIR VALUE THROUGH PROFIT OR LOSS
Ending balance in accordance with IAS 39 1,103 1,103
Additions to IFRS 9 – At fair value through profit or loss from
IAS 39 – Loans and receivables or held-to-maturity investments 8 8
IAS 39 – Available-for-sale financial assets 12 12
1,103 20 1,123
AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Additions to IFRS 9 – At fair value through other comprehensive income
with recycling to profit or loss from
IAS 39 – Loans and receivables or held-to-maturity investments 5,035 334 (2) 5,367 (97) 433
Disposals from IAS 39 – Available-for-sale financial assets to
IFRS 9 – At amortized cost (185) (185)
IFRS 9 – At fair value through other comprehensive income with recycling
to profit or loss (1) (1) (1)
IFRS 9 – At fair value through profit or loss (12) (12)
4,216 4,838 334 (3) 9,385 (99) 433
AT AMORTIZED COST
Additions to IFRS 9 – At amortized cost from
IAS 39 – Available-for-sale financial assets 185 185
Disposals from IAS 39 – Loans and receivables or held-to-maturity investments to
IFRS 9 – At amortized cost (312) (31) (342) (31)
IFRS 9 – At fair value through other comprehensive income with recycling
to profit or loss (5,035) (5,035)
IFRS 9 – At fair value through profit or loss (8) (8)
16,226 (5,170) (31) 11,025 (31)
TOTAL CHANGE 21,544 (312) 334 (34) 21,533 (129) 433
a Carrying amount under IAS 39 that was reclassified from an IAS 39 category to a new IFRS 9 category.
b Resulting difference from the revaluation of an IAS 39 instrument under the new IFRS 9 category.
c Effects including the shares attributable to non-controlling interests.
The main reclassifications from the old IAS 39 measurement categories Under IFRS 9, debt instruments previously assigned to the categories
to the new IFRS 9 measurement categories relate to portfolios of trade “Available-for-sale financial assets,” “Held-to-maturity investments” and
receivables that are to be sold under a factoring agreement. Previously “Loans and receivables” are reclassified – depending on the underlying
assigned to the category “Loans and receivables” and measured at business model and the cash flow characteristics of each instrument –
amortized cost, these receivables are now measured – depending on to the new categories “At amortized cost,” “At fair value through other
the underlying business model – either at fair value through other comprehensive income with recycling to profit or loss,” or “At fair value
comprehensive income with recycling to profit or loss, or at fair through profit or loss.”
value through profit or loss. Trade receivables with a carrying amount
of EUR 135 million were reclassified as contract assets in accordance The allocation of financial liabilities to IFRS 9 measurement categories
with IFRS 15. did not result in any changes. The names of the measurement cate
gories were updated to reflect the wording of the new standard.
In addition, Deutsche Telekom reclassified all equity instruments pre
viously recognized as available-for-sale financial assets to the IFRS 9
category “At fair value through other comprehensive income without
recycling to profit or loss.”

Subsidiaries that are not included in the consolidated financial state- The following table shows the classes of financial assets and liabilities
ments due to their subordinate significance, and which were previously under IFRS 9 along with their previous and current measurement cate-
recognized under IAS 39 at amortized cost as available-for-sale financial gories and carrying amounts:
assets, are recognized under other assets as of the 2018 financial year
and were reclassified as of January 1, 2018 with a carrying amount of
EUR 177 million.
Classes of financial instruments in accordance with IFRS 9

Carrying amounts
Measurement categories Dec. 31, 2017/Jan. 1, 2018
IAS 39 IFRS 9 IAS 39 IFRS 9 Difference
ASSETS
Cash and cash equivalents Loans and receivables (LaR) Amortized cost (AC) 3,312 3,312 0
Trade receivables
At amortized cost Amortized cost (AC) 4,352 (5,048)
At fair value through other comprehensive income Fair value through other com-
Loans and receivables (LaR) prehensive income (FVOCI) 9,400 5,354 5,354
At fair value through profit or loss Fair value through profit or
loss (FVTPL) 6 6
Other financial assets
Originated loans and other receivables
At amortized cost Loans and receivables (LaR) or Amortized cost (AC)
held-to-maturity investments (HtM) or
available-for-sale financial assets (AfS) 3,512 3,361 (151)
Of which: collateral paid Loans and receivables (LaR) Amortized cost (AC) 504 504 ‒
At fair value through profit or loss Available-for-sale financial assets (AfS) Fair value through profit or
loss (FVTPL) 14 14 ‒
Equity instruments
At fair value through other comprehensive income Available-for-sale financial assets (AfS) Fair value through other com-
prehensive income (FVOCI) 4,202 4,029 (173)
At fair value through profit or loss Available-for-sale financial assets (AfS) Fair value through profit or
loss (FVTPL) ‒ ‒ ‒
Derivatives without a hedging relationship Financial assets held for trading (FAHfT) Fair value through profit or
loss (FVTPL) 1,103 1,103 ‒
Of which: termination rights embedded in Financial assets held for trading (FAHfT) Fair value through profit or
bonds issued loss (FVTPL) 351 351 ‒
Derivatives with a hedging relationship n. a. n. a. 214 214 ‒
Lease assets a n. a. n. a. 153 153 ‒
LIABILITIES
Trade payables Financial liabilities measured at Amortized cost (AC)
amortized cost (FLAC) 10,934 10,934 ‒
Bonds and other securitized liabilities Financial liabilities measured at Amortized cost (AC)
Liabilities to banks Financial liabilities measured at Amortized cost (AC)
Liabilities to non-banks from promissory notes Financial liabilities measured at Amortized cost (AC)
amortized cost (FLAC) 480 480 ‒
Other interest-bearing liabilities Financial liabilities measured at Amortized cost (AC)
Of which: collateral received Financial liabilities measured at Amortized cost (AC)
amortized cost (FLAC) 569 569 ‒
Other non-interest-bearing liabilities Financial liabilities measured at Amortized cost (AC)
Finance lease liabilities n. a. n. a. 2,635 2,635 ‒
Derivative financial liabilities a Financial liabilities held for Fair value through profit
trading (FLHfT) or loss (FVTPL) 337 337 ‒
Derivatives without a hedging relationship
Of which: options granted to third parties for the Financial liabilities held for Fair value through profit
purchase of shares in subsidiaries and trading (FLHfT) or loss (FVTPL)
associates 10 10 ‒
Of which: energy forward agreements embedded Financial liabilities held for Fair value through profit
in contracts trading (FLHfT) or loss (FVTPL) 46 46 ‒
Derivatives with a hedging relationship n. a. n. a. 609 609 ‒
a Carrying amount in accordance with IAS 17.

The allowances on financial assets in accordance with IAS 39 are being

reconciled to the IFRS 9 requirements as follows:
Allowances on financial assets

millions of €
Contract Originated loans and

Trade receivables assets other receivables Total
Measurement categories
in accordance with IAS 39 LaR LaR n. a. LaR
in accordance with IFRS 9 AC FVOCI n. a. AC
Allowances
Amount in accordance with IAS 39 (Dec. 31, 2017) 1,303 334 0 19 1,657
Additions resulting from change in measurement category 16 99 27 142
Disposals resulting from change in measurement category (13) (13)
Amount in accordance with IFRS 9 (Jan. 1, 2018) 1,319 433 27 6 1,786
DIFFERENCE IN RETAINED EARNINGS (DEBIT (CREDIT)) 16 99 27 (13) 129
Financial instruments measured at fair value markets are not available at the reporting date for the respective finan-
When determining the fair value, it is important to maximize the use of cial instrument, the instrument can be measured using other inputs that
current inputs observable in liquid markets for the financial instrument are observable on the market at the reporting date (Level 2 measure-
in question and minimize the use of other inputs (e.g., historical prices, ment). The conditions for this are that no major adjustments have been
prices for similar instruments, prices on illiquid markets). A three-level made to the observable inputs and no unobservable inputs are used.
measurement hierarchy is defined for these purposes. If prices quoted Examples of Level 2 measurements are collateralized interest rate swaps,
in liquid markets are available at the reporting date for the respective currency forwards, and cross-currency swaps that can be measured
financial instrument, these will be used unadjusted for the measure- using current interest rates or exchange rates. If the conditions for a
ment (Level 1 measurement). Other input parameters are then irrelevant Level 1 or Level 2 measurement are not met, a Level 3 measurement is
for the measurement. One such example is shares and bonds that are applied. In such cases, major adjustments must be made to observable
actively traded on a stock exchange. Even if quoted prices in liquid inputs or unobservable inputs must be used.
Financial instruments measured at fair value

millions of €
Mar. 31, 2018
Level 1 Level 2 Level 3 Total

ASSETS
Trade receivables
At fair value through other comprehensive income 4,741 4,741
At fair value through profit or loss 16 16
Other financial assets – originated loans and other receivables
At fair value through other comprehensive income 2 2
At fair value through profit or loss 4 10 14
Equity instruments
At fair value through other comprehensive income 97 288 385
Derivatives without a hedging relationship 887 238 1,125
Derivatives with a hedging relationship 147 147
LIABILITIES
Derivatives without a hedging relationship 225 64 289
Derivatives with a hedging relationship 931 931

Financial instruments measured at fair value

millions of €
Dec. 31, 2017
Level 1 Level 2 Level 3 Total

ASSETS
Available-for-sale financial assets (AfS) 3,752 277 4,029
Financial assets held for trading (FAHfT) 752 351 1,103
Derivative financial assets with a hedging relationship 214 214
LIABILITIES
Financial liabilities held for trading (FLHfT) 281 56 337
Derivative financial liabilities with a hedging relationship 609 609
Of the equity instruments measured at fair value through other compre- The fair values of liabilities to banks, liabilities to non-banks from prom-
hensive income and recognized under other financial assets, the instru- issory notes, other interest-bearing liabilities, and finance lease liabilities
ments presented in the different levels constitute separate classes of are calculated as the present values of the payments associated with
financial instruments. In each case, the fair values of the total volume the debts, based on the applicable yield curve and Deutsche Telekom’s
of instruments recognized as Level 1 are the price quotations at the credit spread curve for specific currencies.
reporting date. The total volume of instruments recognized as Level 1
amounted to EUR 97 million (December 31, 2017: EUR 3,752 million). Since there are no market prices available for the derivative financial
The figure for the prior-year period included a strategic financial stake instruments in the portfolio assigned to Level 2 due to the fact that they
of 12 percent in BT with a carrying amount equivalent to around are not listed on the market, the fair values are calculated using standard
EUR 3.7 billion. In the reporting period, this stake was transferred to financial valuation models, based entirely on observable inputs. The fair
plan assets. value of derivatives is the value that Deutsche Telekom would receive or
have to pay if the financial instrument were transferred at the reporting
The listed bonds and other securitized liabilities are assigned to Level 1 date. Interest rates of contractual partners relevant as of the reporting
or Level 2 depending on the market liquidity of the relevant instrument. date are used in this respect. The middle rates applicable as of the re-
As a rule, issues denominated in euros or U.S. dollars with relatively porting date are used as exchange rates. In the case of interest-bearing
large nominal amounts are to be classified as Level 1, the rest as derivatives, a distinction is made between the clean price and the dirty
Level 2. The fair values of the instruments assigned to Level 1 equal price. In contrast to the clean price, the dirty price also includes the
the nominal amounts multiplied by the price quotations at the report- interest accrued. The fair values carried correspond to the full fair value
ing date. The fair values of the instruments assigned to Level 2 are or the dirty price.
calculated as the present values of the payments associated with the
debts, based on the applicable yield curve and Deutsche Telekom’s
credit spread curve for specific currencies.

Development of the carrying amounts of the financial assets and financial liabilities assigned to Level 3
millions of €
Derivative financial assets Derivative financial liabilities

Equity instruments at fair at fair value through profit at fair value through profit or
value through other or loss: termination rights loss: energy forward agree-
comprehensive income embedded in bonds issued ments embedded in contracts
Carrying amount as of January 1, 2018 277 351 (46)
Additions (including first-time categorization as Level 3) 32 11 ‒
Value decreases recognized in profit/loss (including losses on disposal) ‒ (44) (10)
Value increases recognized in profit/loss (including gains on disposal) ‒ 47 1
Value decreases recognized directly in equity (12) ‒ ‒
Value increases recognized directly in equity 6 ‒ ‒
Disposals (15) (118) ‒
Currency translation effects recognized directly in equity ‒ (9) 1
CARRYING AMOUNT AS OF MARCH 31, 2018 288 238 (54)
The equity instruments assigned to Level 3 that are measured at fair as of March 31, 2018. In the case of investments with a carrying amount
value through other comprehensive income and carried under other of EUR 30 million, although the last arm’s length transactions relating
financial assets are equity investments with a carrying amount of to shares in these companies took place some time ago, based on the
EUR 288 million measured using the best information available at the analysis of operational development (in particular revenue, EBIT, and
reporting date. As a rule, Deutsche Telekom considers executed trans- liquidity), the previous carrying amount nevertheless corresponds to the
actions involving shares in those companies to have the greatest rele- fair value and, due to limited comparability, is preferable to measurement
vance. Transactions involving shares in comparable companies are also on the basis of transactions executed more recently relating to shares
considered. The closeness of the transaction in question to the reporting in comparable companies. In the case of investments with a carrying
date and the question of whether the transaction was at arm’s length amount of EUR 51 million, for which the last arm’s length transactions
are relevant for the decision on which information will ultimately be used relating to shares in these companies took place some time ago, mea-
for the measurement. Furthermore, the degree of similarity between the surement executed more recently relating to shares in comparable com-
object being measured and comparable companies must be taken into panies provides the most reliable representation of the fair values. Here,
consideration. Based on Deutsche Telekom’s own assessment, the fair multiples to the reference variable of net revenue (ranging between
values of the equity investments at the reporting date could be deter- 0.9 and 5.4) were taken, using the respective median. In certain cases,
mined with sufficient reliability. Please refer to the table above for the due to specific circumstances, valuation discounts need to be applied
development of the carrying amounts in the reporting period. No plans to the respective multiples. In our opinion, the values used constitute
existed as of the reporting date to sell these investments. In the case of the best estimate in each case. If other values had been used for the
investments with a carrying amount of EUR 207 million, transactions in- multiples or for the expected revenue amounts, the fair values calculated
volving shares in these companies took place at arm’s length sufficiently would have been different. These hypothetical deviations (sensitivities)
close to the reporting date, which is why the share prices agreed in the are shown in the following table:
transactions were to be used without adjustment for the measurement

Sensitivities a of the carrying amounts of the financial assets and financial liabilities assigned to Level 3 depending on unobservable inputs
millions of €
Derivative financial assets Derivative financial liabilities

Equity instruments at fair at fair value through profit at fair value through profit or
value through other or loss: termination rights loss: energy forward agree-
comprehensive income embedded in bonds issued ments embedded in contracts
Multiple 2/3 quartile (instead of median) 17 ‒ ‒
Multiple 1/3 quartile (instead of median) (12) ‒ ‒
Expected revenues +10 % 4 ‒ ‒
Expected revenues ‒10 % (4) ‒ ‒
Interest rate volatility b +1 % ‒ 22 ‒
Interest rate volatility b ‒1 % ‒ (22) ‒
Spread curve c +1 % ‒ (123) ‒
Spread curve c ‒1 % ‒ 146 ‒
Mean reversion d +1 % ‒ (5) ‒
Mean reversion d ‒1 % ‒ 8 ‒
Future energy prices +10 % ‒ ‒ 25
Future energy prices ‒10 % ‒ ‒ (24)
Future energy output +5 % ‒ ‒ 5
Future energy output ‒5 % ‒ ‒ (5)
Future prices for renewable energy credits e +100 % ‒ ‒ 8
Future prices for renewable energy credits e from zero ‒ ‒ (8)
a Change in the relevant input parameter assuming all other input parameters are unchanged.
b Interestrate volatility shows the magnitude of fluctuations in interest rates over time. The larger the fluctuations, the higher the interest rate volatility.
c The spread curve shows, for the respective maturities, the difference between the interest rates payable by T-Mobile US and the interest rates on
U.S. government bonds.

d Mean reversion describes the assumption that, after a change, an interest rate will revert to its average over time. The higher the selected value (mean
reversion speed), the faster the interest rate will revert to its average in the measurement model.
e Renewable energy credits is the term used for the evidence of the production of wind energy.
The derivatives without a hedging relationship assigned to Level 3 and In the reporting period, net income of EUR 47 million when translated
carried under derivative financial assets relate to options embedded in into euros was recognized under Level 3 in other financial income/
bonds issued by T-Mobile US with a carrying amount of EUR 238 mil- expense for unrealized gains for the options in the portfolio at the
lion when translated into euros. The options, which can be exercised reporting date. In the reporting period, several options were exercised
by T-Mobile US at any time, allow early redemption of the bonds at and the relevant bonds canceled prematurely. At the time of termina-
fixed exercise prices. Observable market prices are available routinely tion, the options and their total carrying amount of EUR 118 million
and also at the reporting date for the bonds as entire instruments, but when translated into euros were expensed and derecognized. For the
not for the options embedded therein. The termination rights are mea- development of the carrying amounts in the reporting period, please
sured using an option pricing model. Historical interest rate volatilities refer to the corresponding table, page 52. The changes in value recog-
of bonds issued by T-Mobile US and comparable issuers are used for nized in profit or loss in the reporting period were mainly attributable
the measurement because these provide a more reliable estimate at the to fluctuations in the interest rates and historical interest rate volatilities
reporting date than current market interest rate volatilities. The absolute in absolute terms that are relevant for measurement. Due to their dis-
figure used for the interest rate volatility at the current reporting date tinctiveness, these instruments constitute a separate class of financial
was between 1.2 and 2.3 percent. The significant decline in this value instruments.
compared with the prior year is mainly attributable to the improvement
in the rating of T-Mobile US in the reporting period. The spread curve, With a carrying amount of EUR 54 million when translated into euros,
which is also unobservable, was derived on the basis of current market the derivatives without a hedging relationship assigned to Level 3 and
prices of bonds issued by T-Mobile US and debt instruments of compa- carried under derivative financial liabilities relate to energy forward
rable issuers. The spreads used at the current reporting date were be- agreements embedded in contracts entered into by T-Mobile US. These
tween 2.0 and 2.8 percent for the remaining maturities of the bonds and agreements consist of two components: the energy forward agreement
between 1.1 and 2.0 percent for shorter terms. For the mean reversion and the acquisition of renewable energy credits by T-Mobile US. The
input, which is likewise unobservable, 10 percent was used. In our opin- contracts were entered into with energy producers in 2017 and will run
ion, the values used constitute the best estimate in each case. If other for terms of between 12 and 15 years from the commencement of com-
values had been used for interest rate volatility, spread curve or mean mercial operation. For one energy forward agreement, commercial oper-
reversion, the fair values calculated would have been different. These ation began at the end of 2017, for another, it is set to begin at the end
hypothetical deviations (sensitivities) are shown in the table above. of 2018. The respective settlement period of the energy forward agree-
ments, which are accounted for separately as derivatives, also starts

when the facility begins commercial operation. Under the energy for- period using the respective valuation models and updated parameters.
ward agreements, T-Mobile US receives variable amounts based on the All amounts from the measurement of the derivatives are presented in
facility’s actual energy output and the then current energy prices, and net terms in the statement of financial position (derivative financial as-
pays fixed amounts per unit of energy generated throughout the term of sets/liabilities) and in the income statement (other operating income/
the contract. The energy forward agreements are measured using val- expenses). The difference yet to be amortized in the income statement
uation models because no observable market prices are available. The developed as follows during the reporting period:
value of the derivatives is materially influenced by the facility’s future
energy output, for which T-Mobile US estimated a value of 1,314 giga-
watt hours per year at the reporting date. The value of the derivatives is Energy forward agreements: development of the not-yet-amortized
also materially influenced by future energy prices, which are not observ- measurement amounts on initial recognition
millions of €
able for the period beyond five years. Further, the value of the deriva-
tives is materially influenced by the future prices for renewable energy Measurement amount on initial recognition 112
credits, which are also not observable. For the unobservable por- Measurement amounts amortized in profit or loss in prior periods ‒
tion of the term, T-Mobile US used on-peak energy prices of between Measurement amounts amortized in profit or loss in the current
reporting period (1)
EUR 20.91 and EUR 31.13 when translated into euros and off-peak prices
Currency translation adjustments (8)
of between EUR 13.45 and EUR 22.19 when translated into euros. An MEASUREMENT AMOUNT NOT AMORTIZED AS OF MARCH 31, 2018 103
average on-peak/off-peak ratio of 57 percent was used. In our opinion,
the values used constitute the best estimate in each case. If other val-
ues had been used for future energy prices, future energy output or For the trade receivables, loans issued and other receivables assigned
future prices of renewable energy credits, the fair values calculated to Level 3, which are measured either at fair value through other com-
would have been different. These hypothetical deviations (sensitivities) prehensive income or at fair value through profit or loss, the main factor
are shown in the table on the previous page. In the reporting period, in determining fair value is the credit risk of the relevant counterparties.
a net expense of EUR 9 million (when translated into euros) was rec- If the default rates applied as of the reporting date had been 1 percent
ognized under the Level 3 measurement in other operating income/ higher (lower) with no change in the reference variables, the fair values
expense for unrealized losses for the derivatives. For the development of the instruments would have been 1 percent lower (higher).
of the carrying amounts in the reporting period, please refer to the
corresponding table, page 52. The market-price changes are largely The financial liabilities measured at fair value through profit or loss and
attributable to changes in observable and unobservable energy prices. assigned to Level 3 include derivative financial liabilities with a carrying
Due to their distinctiveness, these instruments constitute a separate amount of EUR 10 million resulting from an option granted to third par-
class of financial instruments. Measurement of the derivatives on initial ties in the prior-year period for the purchase of shares in an associate
recognition resulted in a positive value from T-Mobile US’ perspective of of Deutsche Telekom. The option was granted in connection with a sale
EUR 112 million when translated into euros. In the view of T-Mobile US, of shares in this associate, and no notable fluctuations in value are ex-
the contracts were entered into at current market conditions, and the pected. Due to its distinctiveness, this instrument constitutes a separate
most appropriate parameters for the unobservable inputs were used class of financial instruments.
for measurement purposes. The transaction price at inception was zero
in each case. Since the unobservable inputs have a material influence Disclosures on credit risk
on the measurement of the derivatives, the respective amount resulting In line with the contractual provisions, in the event of insolvency all de-
from initial measurement was not carried on initial recognition. Instead, rivatives with a positive or negative fair value that exist with the respec-
these amounts are amortized in profit or loss on a straight-line basis tive counterparty are offset against each other, leaving a net receivable
over the period of commercial energy generation (for a total amount of or liability. The net amounts are normally recalculated every bank work-
EUR 8 million per year when translated into euros). This amortization ing day and offset against each other. When the netting of the positive
adjusts the effects from measuring the derivatives in each accounting and negative fair values of all derivatives was positive from Deutsche

Telekom’s perspective, Deutsche Telekom received unrestricted cash RELATED-PARTY DISCLOSURES

collateral from counterparties pursuant to collateral contracts in the With the exception of the matters described in the following, there
amount of EUR 635 million (December 31, 2017: EUR 569 million). The were no significant changes as of March 31, 2018 to the related-party
credit risk was thus reduced by EUR 619 million (December 31, 2017: disclosures reported in the consolidated financial statements as of De-
EUR 566 million) because, on the reporting date, the collateral re- cember 31, 2017.
ceived was offset by corresponding net derivative positions in the
same amount. On the basis of these contracts, derivatives with a posi- Joint ventures. In March 2018, the shareholders of the equity-
tive fair value and a total carrying amount of EUR 1,026 million as of the accounted joint venture Toll Collect resolved to distribute a dividend,
reporting date (December 31, 2017: EUR 966 million) had a maximum EUR 0.1 billion of which was paid to Deutsche Telekom.
credit risk of EUR 4 million as of March 31, 2018 (December 31, 2017:
EUR 28 million). There is no danger of default on embedded derivatives Deutsche Telekom Trust e.V. On March 23, 2018, the 12 percent stake
held. For information on the amount not yet amortized from initial mea- in BT, which is worth EUR 3.1 billion, was transferred to the Group’s
surement of the energy forward agreement, please refer to the expla- own trust, Deutsche Telekom Trust e.V., where it will serve as plan
nation above. When the netting of the positive and negative fair values assets to cover pension entitlements.
of all derivatives was negative from Deutsche Telekom’s perspective,
Deutsche Telekom provided cash collateral in the amount of EUR 831 EXECUTIVE BODIES
million (December 31, 2017: EUR 504 million) to counterparties pursuant Changes in the composition of the Board of Management
to collateral contracts. The net amounts are normally recalculated every At its meeting on February 21, 2018, the Supervisory Board of Deutsche
bank working day and offset against each other. The cash collateral paid Telekom AG resolved to extend Timotheus Höttges’ contract as Chair-
is offset by corresponding net derivative positions of EUR 751 million at man of our Board of Management by five years. Timotheus Höttges will
the reporting date (December 31, 2017: EUR 889 million), which is why be reappointed as Chairman of the Board of Management effective Janu-
it was not exposed to any credit risks in this amount. The collateral paid ary 1, 2019. Also at its meeting on February 21, 2018, the Supervisory
is reported under originated loans and other receivables within other Board of Deutsche Telekom AG resolved to appoint Dr. Christian P. Illek
financial assets. On account of its close connection to the correspond- as Chief Financial Officer (CFO) effective January 1, 2019. The current
ing derivatives, the collateral paid constitutes a separate class of finan- CFO, Thomas Dannenfeldt, will leave Deutsche Telekom AG for personal
cial assets. Likewise, the collateral received, which is reported under reasons when his contract expires at the end of 2018.
financial liabilities, constitutes a separate class of financial liabilities on
account of its connection to the corresponding derivatives. No other sig- Changes in the composition of the Supervisory Board
nificant agreements reducing the maximum exposure to the credit risks Hans-Jürgen Kallmeier resigned from his position as a member of
of financial assets existed. The maximum exposure to credit risk of the the Supervisory Board of Deutsche Telekom AG effective midnight,
other financial assets thus corresponds to their carrying amounts. December 31, 2017. Odysseus Chatzidis was court-appointed to the
Supervisory Board of Deutsche Telekom AG effective January 3, 2018.
Dr. Ulrich Schröder resigned from his position as a member of the
Supervisory Board of Deutsche Telekom AG effective February 6,
2018. Dr. Günther Bräuning was court-appointed to the Supervisory
Board of Deutsche Telekom AG effective March 15, 2018.

EVENTS AFTER THE REPORTING PERIOD (MARCH 31, 2018) means that Deutsche Telekom will continue to be able to include
Early termination of senior notes by T-Mobile US. In March 2018, T-Mobile US in its consolidated financial statements. The larger
T-Mobile US terminated senior notes – for nominal amounts of T-Mobile US is expected to achieve cost and capital expenditure syn-
USD 1.75 billion (EUR 1.4 billion) and USD 0.6 billion (EUR 0.5 billion) ergies of around USD 43 billion in cash (after integration costs). Around
and interest rates of 6.625 percent and 6.838 percent – before the due USD 15 billion has been budgeted for integration costs. The ratio of net
date. The repayments were made in April 2018. debt to adjusted EBITDA for Deutsche Telekom is expected to exceed
the target corridor of 2.0x to 2.5x as a result of the transaction. How-
Collective agreements for Group Headquarters, Telekom Deutsch- ever, with strong cash flow generation at T-Mobile US in the coming
land, and Deutsche Telekom IT. On April 12, 2018, Deutsche Telekom years, the ratio is expected to be back in the target corridor by 2021.
and the ver.di union agreed the terms for collective agreements for Following the announcement of the transaction, the rating agency
Group Headquarters, Telekom Deutschland, and Deutsche Telekom IT. Moody’s put Deutsche Telekom’s rating at BBB+ with a negative out-
Some 55,000 employees are covered by these agreements. In addition look. Standard & Poor’s put it at BBB+ with a CreditWatch negative out-
to salary increases, the negotiations focused on innovative working-time look, while Fitch confirmed the current BBB+ rating and stable outlook.
models. Under the new collective agreement for Group Headquarters The agreement is subject to approval by the authorities, to the consent
and Telekom Deutschland, which took effect on February 1, 2018 and of the T-Mobile US and Sprint shareholders, and to other closing condi-
runs for 26 months, the salaries will increase in two steps: by at least tions.
2.7 percent as of May 1, 2018, and by a further 2.1 percent as of May 1,
2019. At Deutsche Telekom IT, the collectively agreed salaries will rise T-Mobile US share buy-back program. Under the share buy-back pro-
by at least 2.6 percent as of July 1, 2018 and by a further 2.0 percent gram launched in December 2017, T-Mobile US acquired further com-
as of July 1, 2019. This collective agreement will run for 24 months. The mon stock after March 31, 2018 for an amount of USD 0.4 billion. In-
agreement also includes a waiver of compulsory redundancies until the cluding the common stock acquired prior to that date, the total volume
end of 2020. In addition, the new part-time models, which include re- of shares repurchased under the share buy-back program amounts to
ducing working time by taking longer leave periods, will make planning USD 1.5 billion. On April 27, 2018, T-Mobile US Board of Directors autho-
leisure time more flexible for employees. rized an increase in the total share buy-back program to USD 9.0 billion,
consisting of the USD 1.5 billion in repurchases previously authorized
Agreed business combination of T-Mobile US and Sprint. Together and for up to an additional USD 7.5 billion of T-Mobile US common
with their respective majority shareholders Deutsche Telekom AG and stock until the end of 2020. The additional buy-back authorization is
Softbank K.K., T-Mobile US and Sprint Corp. concluded a binding agree- contingent upon the termination of the Business Combination Agreement
ment on April 29, 2018 to combine their companies. Under the agree- with Sprint.
ment, T-Mobile US will acquire all of the shares in Sprint. In return for
every 9.75 Sprint shares, the company’s shareholders will receive one
new T-Mobile US share without any additional cash contribution. On
completion of the transaction, Deutsche Telekom will hold around
42 percent of T-Mobile US’ shares and Softbank around 27 percent,
while the free float will account for about 31 percent. This distribution
of the T-Mobile US shares, along with clear corporate governance rules,

57
RESPONSIBILITY STATEMENT
To the best of our knowledge, and in accordance with the applicable and performance of the business and the position of the Group, together
reporting principles for interim financial reporting, the interim consoli- with a description of the material opportunities and risks associated
dated financial statements give a true and fair view of the assets, liabil- with the expected development of the Group for the remaining months
ities, financial position and profit or loss of the Group, and the interim of the financial year.
Group management report includes a fair review of the development
Bonn, May 9, 2018
Deutsche Telekom AG
Board of Management
Timotheus Höttges
Adel Al-Saleh Thomas Dannenfeldt Srini Gopalan Dr. Christian P. Illek
Dr. Thomas Kremer Claudia Nemat Dr. Dirk Wössner

58
REVIEW REPORT
To Deutsche Telekom AG, Bonn
We have reviewed the condensed consolidated interim financial state- Securities Trading Act applicable to interim group management reports.
ments – comprising the statement of financial position, the income state- A review is limited primarily to inquiries of company personnel and
ment, the statement of comprehensive income, the statement of changes analytical procedures and therefore does not provide the assurance
in equity, the statement of cash flows, and selected explanatory notes – attainable in a financial statement audit. Since, in accordance with our
and the interim Group management report of Deutsche Telekom AG, engagement, we have not performed a financial statement audit, we
Bonn, for the period from January 1 to March 31, 2018, which are part of cannot express an audit opinion.
the quarterly financial report pursuant to § 115 of the German Securities
Trading Act (Wertpapierhandelsgesetz – WpHG). The preparation of the Based on our review, no matters have come to our attention that cause
condensed consolidated interim financial statements in accordance with us to presume that the condensed consolidated interim financial state-
the IFRSs applicable to the interim financial reporting as adopted by the ments have not been prepared, in all material respects, in accordance
EU and to the interim Group management report in accordance with the with the IFRSs applicable to interim financial reporting as adopted
provisions of the German Securities Trading Act applicable to interim by the EU nor that the interim Group management report has not
group management reports is the responsibility of the parent company’s been prepared, in all material respects, in accordance with the provi-
board of management. Our responsibility is to issue a review report on sions of the German Securities Trading Act applicable to interim group
the condensed consolidated interim financial statements and on the management reports.
interim Group management report based on our review.
We conducted our review of the condensed consolidated interim finan-

cial statements and the interim Group management report in accor-
dance with German generally accepted standards for the review of finan-
cial statements promulgated by the Institut der Wirtschaftsprüfer (Insti-
tute of Public Auditors in Germany) (IDW) and additionally observed the
International Standards on Review Engagements, “Review of Interim Fi-
nancial Information Performed by the Independent Auditor of the Entity”
(ISRE 2410). Those standards require that we plan and perform the re- Frankfurt/Main, May 9, 2018
view so that we can preclude through critical evaluation, with moderate
assurance, that the condensed consolidated interim financial statements PricewaterhouseCoopers GmbH
have not been prepared, in all material respects, in accordance with the Wirtschaftsprüfungsgesellschaft
IFRSs applicable to interim financial reporting as adopted by the EU and
that the interim Group management report has not been prepared, in Dr. Peter Bartels Thomas Tandetzki
all material respects, in accordance with the provisions of the German Wirtschaftsprüfer Wirtschaftsprüfer

Additional information 59
ADDITIONAL INFORMATION
RECONCILIATION OF ALTERNATIVE
PERFORMANCE MEASURES
SPECIAL FACTORS
The following table presents a reconciliation of EBITDA, EBIT, and net ciliations are presented for the reporting period, the prior-year period,
profit/loss to the respective figures adjusted for special factors. Recon- and the full 2017 financial year:
millions of €
EBITDA EBIT EBITDA EBIT EBITDA EBIT

Q1 2018 Q1 2018 Q1 2017 Q1 2017 FY 2017 FY 2017
EBITDA/EBIT 5,269 2,171 5,963 2,771 23,969 9,383
GERMANY (167) (167) (49) (49) (308) (308)
Staff-related measures (160) (160) (37) (37) (221) (221)
Non-staff-related restructuring (6) (6) (7) (7) (26) (26)
Effects of deconsolidations, disposals and acquisitions ‒ ‒ 0 0 0 0
Impairment losses ‒ ‒ ‒ ‒ ‒ ‒
Other (1) (1) (5) (5) (61) (61)
UNITED STATES 28 28 4 4 1,633 1,633
Non-staff-related restructuring ‒ ‒ 0 0 0 0
Effects of deconsolidations, disposals and acquisitions 30 30 0 0 (11) (11)
Impairment losses ‒ ‒ ‒ ‒ 1,651 1,651
Other ‒ ‒ 5 5 0 0
EUROPE (7) (7) (12) (12) (130) (995)
Non-staff-related restructuring ‒ ‒ 0 0 (3) (3)
Effects of deconsolidations, disposals and acquisitions 0 0 0 0 18 18
Impairment losses ‒ ‒ ‒ 0 ‒ (866)
Other (1) (1) 0 0 (53) (52)
SYSTEMS SOLUTIONS (38) (38) (35) (35) (229) (1,477)
Non-staff-related restructuring 0 0 0 0 (2) (2)
Impairment losses ‒ ‒ ‒ ‒ ‒ (1,242)
Other (14) (14) (21) (21) (94) (100)
GROUP DEVELOPMENT (5) (5) 519 519 893 893
Staff-related measures (2) (2) 5 5 1 1
Non-staff-related restructuring ‒ ‒ (2) (2) (5) (5)
Effects of deconsolidations, disposals and acquisitions (3) (3) 516 516 708 708
Impairment losses ‒ ‒ ‒ 0 ‒ ‒
Other (1) (1) 0 0 189 189
GROUP HEADQUARTERS & GROUP SERVICES (92) (92) (16) (16) (119) (119)
Impairment losses ‒ ‒ ‒ 0 ‒ 0
Other (1) (1) (1) (1) (26) (26)
GROUP (281) (281) 412 412 1,740 (374)
Effects of deconsolidations, disposals and acquisitions 28 28 522 522 778 778
Impairment losses ‒ ‒ ‒ 0 1,651 (463)
Other (17) (17) (21) (21) (45) (45)
EBITDA/EBIT (ADJUSTED FOR SPECIAL FACTORS) 5,549 2,452 5,550 2,359 22,230 9,757
Profit (loss) from financial activities (adjusted for special factors) (413) (1,355) (2,895)
PROFIT (LOSS) BEFORE INCOME TAXES
(ADJUSTED FOR SPECIAL FACTORS) 2,038 1,004 6,863
Income taxes (adjusted for special factors) (584) 0 949
PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) 1,455 1,004 7,812
PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS)
ATTRIBUTABLE TO
Owners of the parent (net profit (loss))
(adjusted for special factors) 1,190 939 6,039
Non-controlling interests (adjusted for special factors) 265 64 1,773

60 Additional information
GROSS AND NET DEBT

Deutsche Telekom considers net debt to be an important performance
indicator for investors, analysts, and rating agencies.
millions of €
Change
Mar. 31, 2018 Dec. 31, 2017 Change % Mar. 31, 2017
Financial liabilities (current) 8,905 8,358 547 6.5 14,871
Financial liabilities (non-current) 48,799 49,171 (372) (0.8) 50,402
FINANCIAL LIABILITIES 57,704 57,529 175 0.3 65,273
Accrued interest (574) (692) 118 17.1 (690)
Other (793) (781) (12) (1.5) (932)
GROSS DEBT 56,337 56,056 281 0.5 63,651
Cash and cash equivalents 3,618 3,312 306 9.2 9,542
Available-for-sale financial assets/financial assets held for trading ‒ 7 (7) n. a. 7
Derivative financial assets 1,271 1,317 (46) (3.5) 1,570
Other financial assets 993 629 364 57.9 2,569
NET DEBT 50,455 50,791 (336) (0.7) 49,963

RECONCILIATION FOR THE CHANGE IN DISCLOSURE OF

KEY FIGURES FOR THE COMPARATIVE PERIOD IN THE
FIRST QUARTER OF 2018
millions of €
Comparative period Dec. 31, 2017
Profit (loss)
from Depreciation
Total operations Adjusted and Impairment Segment Segment
revenue (EBIT) EBITDA EBITDA amortization losses assets liabilities
Q1 2017/MARCH, 31 2017
PRESENTATION AS OF MARCH 31, 2017 – AS REPORTED
Germany 5,397 1,086 2,021 2,070 (935) 0 33,667 26,566
United States 8,982 1,003 2,390 2,386 (1,387) 0 64,931 42,003
Europe 2,781 324 877 889 (552) (1) 25,746 10,206
Systems Solutions 1,704 (37) 61 96 (98) 0 6,408 5,061
Group Development 595 686 758 238 (71) ‒ 9,997 5,549
Group Headquarters & Group Services 737 (292) (144) (128) (147) (1) 46,956 55,867
TOTAL 20,196 2,770 5,964 5,551 (3,190) (2) 187,705 145,252
Reconciliation (1,549) 1 (1) (1) 1 ‒ (46,371) (46,388)
GROUP 18,646 2,771 5,963 5,550 (3,189) (2) 141,334 98,864
Q1 2017/MARCH 31, 2017
+/‒ CHANGE IN DISCLOSURE: VIVENTO CUSTOMER SERVICES
Germany ‒ (15) (15) (15) ‒ ‒ 71 76
United States ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Europe ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Systems Solutions ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Group Development ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Group Headquarters & Group Services (2) 15 15 15 ‒ ‒ ‒ (4)
TOTAL (2) ‒ ‒ ‒ ‒ ‒ 71 72
Reconciliation 2 ‒ ‒ ‒ ‒ ‒ (71) (72)
GROUP ‒ ‒ ‒ ‒ ‒ ‒ ‒ ‒
Q1 2017/MARCH 31, 2017
= PRESENTATION AS OF MARCH 31, 2018
Germany 5,397 1,071 2,006 2,055 (935) ‒ 33,739 26,641
United States 8,982 1,003 2,390 2,386 (1,387) ‒ 64,931 42,003
Europe 2,781 324 877 889 (552) (1) 25,746 10,206
Systems Solutions 1,704 (37) 61 96 (98) ‒ 6,408 5,061
Group Development 595 686 758 238 (71) ‒ 9,997 5,549
Group Headquarters & Group Services 735 (276) (128) (113) (147) (1) 46,957 55,863
TOTAL 20,194 2,770 5,964 5,551 (3,190) (2) 187,778 145,323
Reconciliation (1,547) 1 (1) (1) 1 ‒ (46,444) (46,459)
GROUP 18,646 2,771 5,963 5,550 (3,189) (2) 141,334 98,864

62 Additional information
GLOSSARY If these or other risks and uncertainties materialize, or if the assump-

tions underlying any of these statements prove incorrect, Deutsche
For definitions, please refer to the 2017 Annual Report and the glossary Telekom’s actual results may be materially different from those ex-
therein, page 260 et seq. pressed or implied by such statements. Deutsche Telekom can offer
no assurance that its expectations or targets will be achieved. Without
prejudice to existing obligations under capital market law, Deutsche
Telekom does not assume any obligation to update forward-looking
DISCLAIMER statements to account for new information or future events or anything
else.
This Report (particularly the section “Forecast”) contains forward-
looking statements that reflect the current views of Deutsche Telekom’s In addition to figures prepared in accordance with IFRS, Deutsche
management with respect to future events. They are generally identified Telekom presents alternative performance measures, e.g., EBITDA,
by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted
“goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and in- EBIT, adjusted EBIT margin, adjusted net profit/loss, free cash flow,
clude generally any information that relates to expectations or targets gross debt, and net debt. These measures should be considered in ad-
for revenue, adjusted EBITDA, or other performance measures. dition to, but not as a substitute for, the information prepared in accor-
dance with IFRS. Alternative performance measures are not subject to
Forward-looking statements are based on current plans, estimates, and IFRS or any other generally accepted accounting principles. Other com-
projections. You should consider them with caution. Such statements panies may define these terms in different ways. For further information
are subject to risks and uncertainties, most of which are difficult to pre- relevant to alternative performance measures, please refer to the 2017
dict and are generally beyond Deutsche Telekom’s control. They include, Annual Report, section “Management of the Group,” page 38 et seq., or
for instance, the progress of Deutsche Telekom’s staff-related restruc to Deutsche Telekom’s Investor Relations website at www.telekom.com/
turing measures and the impact of other significant strategic or business alternative-performance-measures.
initiatives, including acquisitions, dispositions, and business combi-
nations. In addition, movements in exchange rates and interest rates, The figures shown in this report were rounded in accordance with stan-
regulatory rulings, stronger than expected competition, technological dard business rounding principles. As a result, the total indicated may
change, litigation, and regulatory developments, among other factors, not be equal to the precise sum of the individual figures.
may have a material adverse effect on costs and revenue development.

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May 9, 2018 May 17, 2018 May 24/25, 2018
Publication of the 2018 Shareholders’ 2018 Capital Markets Day

Interim Group Report meeting
as of March 31, 2018
August 9, 2018 November 8, 2018 February 21, 2019
Publication of the Publication of the Press conference on the

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MEDIA INFORMATION
Bonn, May 9, 2018
Deutsche Telekom continues to grow on both sides of the

Atlantic in the first quarter of 2018 and raises forecast
 Adjusted EBITDA of 23.3 billion euros expected for full-year 2018

 Revenue in organic terms rises 3.1 percent
 EBITDA in organic terms increases 6.6 percent
 Free cash flow up 12.5 percent to 1.4 billion euros
 Increase of 32.8 percent in net profit
 Over 10 million fiber-optic customers in Germany
 T-Mobile US remains on course for success and raises target for customer
growth
 Sustained uptrend in Europe
_______________________________________________________________
A good start to 2018 for Deutsche Telekom on both sides of the Atlantic: In the
first quarter of the year, net revenue rose by 3.1 percent year-on-year in organic
terms, i.e., adjusted for exchange rate effects and changes in the composition
of the Group. Adjusted EBITDA in organic terms increased by as much as
6.6 percent. The strong euro, which gained more than 15 percent against the
U.S. dollar in one year, impacted on the figures reported, reducing revenue by
3.9 percent to 17.9 billion euros. Reported adjusted EBITDA remained stable at
5.5 billion euros.
“We will remain on course for success in 2018,” said Tim Höttges, Chairman of
the Board of Management at Deutsche Telekom. “Our growth profile, which is
unique in our industry, enables us to raise our forecast once again.”
Page 1 of 10
Other key indicators are also trending upward. Free cash flow totaled 1.4 billion
euros in the first quarter of 2018, an increase of 12.5 percent year-on-year. Due
to a marked decrease in the loss from financial activities, net profit rose by
32.8 percent to 1.0 billion euros. Adjusted net profit increased by 26.7 percent
to 1.2 billion euros.
Driven by developments in the United States, where T-Mobile US raised its

forecast after a strong first quarter, Deutsche Telekom is raising its guidance for
adjusted EBITDA in the full-year 2018 from around 23.2 to around 23.3 billion
euros. The free cash flow forecast remains unchanged at around 6.2 billion
euros.
Germany – milestone in fiber-optic customer number
More than 10 million customers in Germany use Deutsche Telekom’s fiber-optic

lines (FFTH, VDSL/vectoring). The overall number of customers increased in
the first quarter to 10.4 million, up 2.8 million or 37 percent year-on-year. A total
of 781,000 customer additions in the first three months of the year alone
pointed to a further record quarter as a result of the systematic rollout of the
fiber-optic network in Germany. By the end of the first quarter, 72.7 percent of
all fixed-network households were able to use fiber-optic products, compared
with just 65.7 percent a year earlier. Telekom increased its share of the
broadband market again with 95,000 customer additions. In all, 3.8 million
customers enjoy the advantages of the MagentaEINS product packages,
16.1 percent more than one year earlier.
In mobile communications, the mobile service revenues key indicator is

significantly influenced by a change in the accounting standard governing the
determination and recognition of revenue (IFRS 15). Excluding this effect gives
a substantial increase of 3.2 percent. Telekom thus continues to maintain its
leading market position in Germany. Thanks to the StreamOn option launched
Page 2 of 10
in April 2017, nearly 1.1 million Telekom customers are able to listen to music
and watch videos online without having to use their data volume for this.
Revenue in the Germany operating segment declined slightly by 1.3 percent to

5.3 billion euros in the reporting period. However, the segment’s service
revenues, excluding device sales, i.e., revenues from voice and data services
as well as add-on products such as Entertain, rose by around 1.2 percent. At
the same time, adjusted EBITDA grew by 1.3 percent to 2.1 billion euros. This
yielded an adjusted EBITDA margin of 39.1 percent, 1 percentage point higher
than in the previous year.
United States – the Un-carrier marches on
The United States sustained the now familiar picture in the first quarter.
T-Mobile US is continuing to grow rapidly in terms of customer numbers and
financial KPIs. For the 20th consecutive quarter, the company recorded more
than one million net customer additions. It had gained 1.4 million new
customers between January and March 2018. This trend is reinforced by the
extremely low churn rate. In the first quarter, this key indicator reached a record
low of 1.07 percent among branded postpaid customers. T-Mobile US had a
total of 74.0 million customers at the end of the reporting period.
Revenue also remained on a growth trajectory. In the first quarter, total revenue
increased by 8.7 percent year-on-year to 10.4 billion U.S. dollars. Adjusted
EBITDA climbed 12.8 percent to 2.9 billion U.S. dollars. T-Mobile US has
revised its forecasts for the current year upward and now expects postpaid net
customer additions of 2.6 to 3.3 million instead of the 2.0 to 3.0 million net
additions previously projected. Based on the U.S. GAAP accounting standards
applicable to the company, adjusted EBITDA is now expected to be between
11.4 and 11.8 billion dollars instead of between 11.3 and 11.7 billion dollars as
previously targeted.
Europe – sustained positive trend
Page 3 of 10
The encouraging trends from 2017 in the European business also continued in
the new year. The number of customers who used fixed-mobile product
bundles reached 2.4 million at the end of the first quarter, an increase of 51.1
percent year-on-year. The success of the convergence strategy is expected to
be repeated in Austria following the announced acquisition of UPC Austria.
The financial KPIs likewise developed positively in the reporting period.

Revenue in the Europe operating segment increased by 1.1 percent to
2.8 billion euros, with adjusted EBITDA rising by 2.5 percent to 0.9 billion
euros. This also includes exchange rate effects. In organic terms, revenue grew
by 0.2 percent and adjusted EBITDA by 1.6 percent. The earnings trend
reflected in particular the reduction in indirect costs.
Systems Solutions – investments in new business weigh on results
Order entry at T-Systems in the first quarter rose by 18.2 percent year-on-year
to 1.5 billion euros. Revenue, on the other hand, decreased marginally by
2.3 percent to 1.7 billion euros. The IT Division continues to be affected by
price pressure in the industry and falling volumes.
On the earnings side, particularly the high expenses for new business areas
such as the Internet of Things, the cloud, and healthcare had an impact on the
Digital Division in the first quarter. Due to these start-up costs, adjusted
EBITDA decreased by 40.6 percent compared with the prior-year period to
57 million euros. Adjusted EBIT declined to minus 38 million euros. In spite of
this level of earnings, T-Systems is sticking to its targets for the year as a
whole.
Page 4 of 10
The Deutsche Telekom Group at a glance:
Q1 Q1 Change FY 2017
2018 2017 % millions of
millions of millions of €
€ €
Revenue 17,924 18,646 (3.9) 74,947

Proportion generated 66.6 67.3 (0.7p) 67.2
internationally (%)
EBITDA 5,269 5,963 (11.6) 23,969
Adjusted EBITDA 5,549 5,550 (0.0) 22,230
Net profit 992 747 32.8 3,461
Adjusted net profit 1,190 939 26.7 6,039
Free cash flowa 1,382 1,228 12.5 5,497
Cash capexb 3,139 3,280 (4.3) 19,494
Cash capexb 3,076 3,245 (5.2) 12,099
(before spectrum)
Net debt 50,455 49,963 1.0 50,791
Number of employeesc 216,926 216,548 0.2 217,349
Comments on the table:

The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial
Instruments” took effect as of January 1, 2018. Prior-year comparatives were not adjusted. Application of these
standards did not have any material effect on the Group’s results of operations.
a Before dividend payments and spectrum investment.
b Cash outflows for investments in property, plant and equipment, and intangible assets (excluding goodwill).
c At the reporting date.
Page 5 of 10
Operating segments:
Q1 Q1 Change FY 2017
2018 2017 % millions of
millions of millions of €
€ €
Germany
Total revenue 5,325 5,397 (1.3) 21,931
EBITDA 1,915 2,006 (4.5) 8,104
Adjusted EBITDA 2,082 2,055 1.3 8,412
Number of employeesa 64,695 65,917 (0.2) 64,798
United States
Total revenue 8,455 8,982 (5.9) 35,736
US-$ 10,394 9,563 8.7 40,317
EBITDA 2,360 2,390 (1.3) 10,949
Adjusted EBITDA 2,332 2,386 (2.3) 9,316
US-$ 2,866 2,540 12.8 10,479
Europe
Total revenue 2,811 2,781 1.1 11,589
EBITDA 905 877 3.2 3,619
Adjusted EBITDA 911 889 2.5 3,749
Systems Solutions
Order entry 1,506 1,274 18.2 5,241
Total revenue 1,665 1,704 (2.3) 6,918
Adjusted EBIT margin (2.3) (0.1) (2.2p) 1.7
(%)
EBITDA 19 61 (68.9) 280
Adjusted EBITDA 57 96 (40.6) 509

The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial
Instruments” took effect as of January 1, 2018. Prior-year comparatives were not adjusted. Application of these
standards did not have any material effect on the Group’s results of operations.
a At the reporting date.
Page 6 of 10
Development of customer numbers
Operating segments: development of customer numbers in the first

quarter of 2018
Mar. 31, 2018 Dec. 31, 2017 Change Change
thousands thousands thousands %
Germany
Mobile customers 42,730 43,125 (395) (0.9)
Of which contract 25,102 25,887 (785) (3.0)
customers
Fixed-network lines 19,149 19,239 (90) (0.5)
Of which retail IP-based 12,843 11,996 847 7.1
Broadband lines 13,357 13,209 148 1.1
Of which optical fibera 6,232 5,803 429 7.4
Television (IPTV, satellite) 3,193 3,139 54 1.7
Unbundled local loop lines 5,846 6,138 (292) (4.8)
(ULLs)
United States
Mobile customers 74,040 72,585 1,455 2.0
Of which branded 39,065 38,047 1,018 2.7
postpaid customers
Of which branded 20,876 20,668 208 1.0
prepay customers
Europe
Mobile customers 49,254 48,842 412 0.8
Of which contract 25,686 25,483 203 0.8
customers
Of which IP-based 5,947 5,734 213 3.7
Retail broadband lines b 5,821 5,647 174 3.1
Television (IPTV, satellite, 4,271 4,244 27 0.6
cable)

a Sum of all FTTx access lines (e.g., FTTC/VDSL, vectoring, and FTTH).
b Retail broadband lines were reclassified as of January 1, 2018. This means that all lines based on broadband
technology are now included in the definition, irrespective of which service the customer is using. Prior-year
comparatives were not adjusted.
Page 7 of 10
Operating segments: development of customer numbers in a year-on-year
comparison
Mar. 31, 2018 Mar. 31, 2017 Change Change
thousands thousands thousands %
Germany
Mobile customers 42,730 42,114 616 1.5
Of which contract 25,102 25,270 (168) (0.7)
customers
Of which retail IP-based 12,843 9,801 3,042 31.0
Broadband lines 13,357 12,989 368 2.8
Of which optical fibera 6,232 4,693 1,539 32.8
Television (IPTV, satellite) 3,193 2,955 238 8.1
Unbundled local loop lines 5,846 6,952 (1,106) (15.9)
(ULLs)
United States
Of which branded 39,065 35,341 3,724 10.5
postpaid customers
Of which branded prepay 20,876 20,199 677 3.4
customers
Europe
Of which contract 25,686 24,482 1,204 4.9
customers
Of which IP-based 5,947 5,190 757 14.6
Retail broadband lines b 5,821 5,444 377 6.9
Television (IPTV, satellite, 4,271 4,100 171 4.2
cable)

a Sum of all FTTx access lines (e.g., FTTC/VDSL, vectoring, and FTTH).
b Retail broadband lines were reclassified as of January 1, 2018. This means that all lines based on broadband
technology are now included in the definition, irrespective of which service the customer is using. Prior-year
comparatives were not adjusted.
Page 8 of 10
This media information contains forward-looking statements that reflect the current views of
Deutsche Telekom management with respect to future events. These forward-looking
statements include statements with regard to the expected development of revenue, earnings,
profits from operations, depreciation and amortization, cash flows, and personnel-related
measures. They should therefore be considered with caution. Such statements are subject to
risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche
Telekom's control. Among the factors that might influence Deutsche Telekom's ability to
achieve its objectives are the progress of its staff restructuring initiatives and other cost-saving
measures, and the impact of other significant strategic, labor, or business initiatives, including
acquisitions, dispositions, business combinations, and network upgrade and build-out
initiatives. In addition, stronger than expected competition, technological change, legal
proceedings and regulatory developments, among other factors, may have a material adverse
effect on cost and revenue development. Further, an economic downturn in the markets, and
changes in interest and currency exchange rates, may also have an impact on Deutsche
Telekom's business development and the availability of financing on favorable conditions.
Changes to Deutsche Telekom's expectations concerning future cash flows may lead to
impairment write downs of assets carried at historical cost, which may materially affect the
results at the Group and operating segment levels. If these or other risks and uncertainties
materialize, or if the assumptions underlying any of these statements prove incorrect, the actual
performance may materially differ from the performance expressed or implied by forward-
looking statements. There is no assurance that the estimates or expectations will be achieved.
Without prejudice to existing obligations under capital market law, Deutsche Telekom does not
assume any obligation to update forward-looking statements to take new information or future
events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents
alternative performance measures, including, among others, EBITDA, EBITDA margin,
adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net profit, free cash flow,
gross debt, and net debt. These performance measures should be considered in addition to,
but not as a substitute for, the information prepared in accordance with IFRS. Alternative
performance measures are not subject to IFRS or any other generally accepted accounting
principles. Other companies may define these terms in different ways.
Page 9 of 10
Deutsche Telekom AG
Corporate Communications
Tel.: + 49 (0) 228 181 – 49494

E-mail: [email protected]
Further information for the media at:
www.telekom.com/media
www.telekom.com/photos
www.twitter.com/deutschetelekom
www.facebook.com/deutschetelekom
www.telekom.com/blog
www.youtube.com/deutschetelekom
www.instagram.com/deutschetelekom
About Deutsche Telekom: https://www.telekom.com/en/company/at-a-glance
Page 10 of 10
Deutsche Telekom
Q1/2018 Results
DISCLAIMER
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-
looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows
and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict
and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce
reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and
business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and
regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets,
and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions.
Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results
at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect,
our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or
expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements
to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents alternative performance measures, including, among others, EBITDA, EBITDA
margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These alternative performance measures
should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to
IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
2
REVIEW Q1/2018
2018 Q1 Highlights: growth on both sides of the atlantic
Growth: investments and innovations Growth: customers Growth: financials

 Cash capex at €3.1 bn  Demand for fiber in Germany  Strong growth continues
 IP-Migration continues in GER (73%) and  10.4 mn German homes with fiber (+37%  Revenue up 3.1% yoy2
EU (71%) yoy)  Adj. EBITDA up 6.6% yoy2
 Fiber roll-out: 4.4 mn new homes in GER  Record quarter with 781k net adds  Adj. EBITDA ex. US up 2.2%2
and EU with access to Fiber yoy  Continued strong US growth  FCF up 12.5% yoy
 Continued LTE pop coverage expansion in  5.9 mn net adds LTM1  adj. EPS +20%
GER (94%) and EU (95%)  Net add guidance for full year raised  Net debt/Adj. EBITDA at 2.3x
300Mbit/s
1) Adj. for 4,528k wholesale customers no longer reported since Q2/17 2) Revenue and adj. EBITDA growth rates on organic base: adjusted for currency fluctuations and changes in the scope of consolidation
4
Q1/2018 Innovations: Focus on customer experience
Hybrid Access1 Innovation/Network E-service share of interactions

subs +21% in %
+38%
Launch of the largest European aviation
386k FTTH roll-out project in network roll-out 33.0%
320k 24.0%
Germany to date completed. Commercial
launch in Feb. 2018
Q1/17 Q1/18 Q1/17 Q1/18
Smart Home2 IT-Support3

subs +80% subs +2%
MagentaMobil XL Europe’s first 5G life trial
283k unlimited mobile data network with full standard 635k 649k
157k plan launched in equipment launched in
Germany Berlin
Q1/17 Q1/18 Q1/17 Q1/18
1) +5€ per customer/month 2) +10€ per customer/month 3) +8€ per customer/month
5
Q1/2018 customers: Strong demand drives momentum
MagentaEINS (Germany + EU)1 US Mobile

mn +1.4 mn +5.92
6.2 72.6 74.0
4.8
Q1/17 Q1/18 Q1/17 Q1/18
Fiber in Germany Cloud revenues

mn € bn
+2.8 +7%
10.4 0.37 0.40
7.6
Q1/17 Q1/18 Q1/17 Q1/18
1) FMC RGUs may also appear under other brand name outside of Germany 2) Adj. for 4,528k wholesale customers no longer reported since Q2/17
6
US: Highly attractive transaction
Unique value creation

Attractive Benefitting U.S. consumers, Robust Capital Governance Designed
opportunity for Deutsche
Transaction Terms investments and job creation Structure for Efficient Integration
Telekom Shareholders
 U.S. market highly attractive  Stock-for-stock transaction; no  Supercharging the pro-  DT Group to rapidly de-lever  The Un-Carrier team in charge
 Supercharging the cash consideration consumer Un-Carrier strategy post integration  Proven merger execution/value
Un-Carrier @ ~$43 bn cost  Fixed exchange ratio of  Unique spectrum position to  New T-Mobile US returns to creation track record
synergy NPV 0.10256x accelerate 5G competition strict standalone funding  Clearly defined governance
 EBITDA and FCF growth-  DT controls and consolidates  Unprecedented investments in  $8 bn DT shareholder loans to
enhancing for DT’s New T-Mobile US through proxy nationwide 5G be repaid at closing +
shareholders; EPS accretive over Softbank shares  Creating jobs from day 1 cancellation of $2.5 bn RCF
3 years after closing  No break-up fees  Remaining $6.6 bn DT held
 Further strengthening our debt will be redeemed over
Transatlantic Platform time
 Unique combination of scale &  DT remains committed to
growth undisputed access to capital
 DT ex U.S. investment and markets
growth profile unaffected
7
GUIDANCE 2018: EBITDA outlook raised by €0.1 bn
€ bn Revenue Adj. EBITDA FCF
2014 – 2018 CAGR +1 – 2% +2 – 4% ≈+10%

achievements Q1/18 +3.1%2 +6.6%2 +12.5%
2018 Guidance ($/€: 1.13) Slight increase Old: around 23.2 Around 6.2
New: around 23.3
thereof group excl. US Around 13.2
thereof TM US (US$ bn) Old: around 11.31
New: around 11.41
impact of new revenue standard (US$ bn) Around 0.35
handset lease (US$ bn) 0.6 – 0.7
1) Equals mid-Point TMUS guidance ($11.6bn US GAAP (previously 11.5)) + mid-point revenue recognition guidance (+$0.35bn) and -$0.5bn IFRS bridge
2) Growth rates on organic base: adjusted for currency fluctuations and changes in the scope of consolidation
8
REVIEW Q1/18
q1 2018: Financial Highlights
€ mn Q1 FY
2017 2018 Change 2016 2017 Change
Revenue 18,646 17,924 -3.9% 73,095 74,947 +2.5%

Adj. EBITDA 5,550 5,549 0.0% 21,420 22,230 +3,8%
Adj. Net profit 939 1,190 +26.7% 4,114 6,039 +46.8%
Net profit 747 992 +32.8% 2,675 3,461 +29.4%
Adj. EPS (in €) 0.20 0.24 +20.0% 0.89 1.28 +43.8%
Free cash flow1 1,228 1,382 +12.5% 4,939 5,497 +11.3%
Cash capex2 3,245 3,076 -5.2% 10,958 12,099 +10.4%
Net debt 49,963 50,455 +1.0% 49,959 50,791 +1.7%
1) Free cash flow before dividend payments and spectrum investment 2) Excl. Spectrum: Q1/17: €35 mn; Q1/18: €63 mn. FY/16: €2,682 mn; FY/17: €7,395 mn
10
GERMANY: revenue impacted by IFRS adj., ebitda on track
Revenue (as reported) Adj. EBITDA and margin (in % as reported)

€ mn Retail fixed1 Mobile Service Others € mn 38.1 38.8 39.7 39.1
36.9
Wholesale services Mobile handsets & other
+1.3%
-1.3%
2,055 2,086 2,177 2,094 2,082
5,488 5,676
5,397 5,371 5,325
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
2,379 2,419
2,392 2,385 2,371 Adj. OPEX (as reported)
848 874 878 € mn

852 862 -3.1%
1,635 1,669 1,713 1,695 1,480 3,417 3,342 3,373 3,683 3,310
337 185 281 183 340 183 473 211 422 191
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
1) Fixed network core business
11
germany: Sustained growth in service revenues
(EXCL. IFRS 15)
Mobile service revenue Fixed line service revenue1 Total service revenue1
Q1/17 -0.8% -0.6% -0.7%
Q2/17 0.8% -1.2% -0.6%
Q3/17 0.9% 0.3%2 0.5%2
Q4/17 1.7% 0.5% 0.9%
Q1/18 3.2% 0.2% 1.2%
1) Total service revenue is a sum of fixed line and mobile service revenue. We define fixed line service revenue as fixed network core business revenue less fixed hardware revenue plus wholesale services fixed network revenue. From Q2/16 onwards we classify
CPEs recurring rent revenue as fixed service revenue, and thus also part of total service revenue. Without this reclassification fixed line service revenue growth rate would be -0.2% in Q1/18, whereas TSR growth rate would be +1.0% in Q1/18.
Old growth rates have not been restated 2) Revenue in Q2/16 impacted by a negative special factor related to a settlement agreement. Adjusted growth rate at -1.5% for fixed service revenue, resp. -0.8% for total service revenue
12
GERMANY mobile: good commercial momentum
German mobile market service revenue1 (excl. IFRS 15) Contract net adds2
€ mn Telefonica Vodafone Telekom 000 368 435 SPs/MVNOs
515 231 137 254 181 (incl. Lebara)
89 228 76
-39 -414 Own branded
-862
4,611 -186
4,426 4,479 4,567 ~4.5bn
-786
1,292 1,318 1,344 1,332 1,285 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
-0.5%
Smartphone penetration3 LTE customers4
1,499 1,492 1,554 1,540
% mn +16.7%
+3pp
9.6 11.2
1,635 1,669 1,713 1,695 1,687 85 88
+3.2%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q1/18 Q1/17 Q1/18
1) Management estimate 2) Figures may not add up due to rounding 3) Of own branded retail customers 4) Own customers using a LTE-device and tariff plan including LTE 5) Contract net adds under own brand impacted by disconnections (minus 41k)
13
Germany: good progress with convergence and data
Mobile contract customers in MagentaEINS bundles1 Average Consumer Data Usage3

Q1/17 MB Growth 82% 61% 55% 38% 54%
yoy %
44% Q1/18 1,920
1,554 1,654
37% 1,244 1,360
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Households in MagentaEINS bundles2 Average data usage uplift3

Q1/17 MB
x3 more
19%
Q1/18
16% 2,408
815
Non-LTE LTE
handset
1) as % of B2C T-branded contract customers 2) as % of B2C broadband access lines 3) per month of B2C T-branded contract customers & tariff
14
GERMANY Fixed: strong broadband customer growth
German broadband market1 Entertain customers

mn +67k +46k +70k +104k +95k3 Cable 000 +76 +69 +65 +50 +54
32.6 32.7 33.0 33.4 33.8 Telco Competitors 2,955 3,024 3,089 3,139 3,193
7.4 7.5 7.6 7.8 7.9 DT
12.1 12.2 12.3 12.4 12.5
DT net adds
13.0 13.0 13.1 13.2 13.4
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Line losses Fiber customers2

000 000 +775 +622 +700 +684 +781 Retail
10,367
7,580 8,202 8,902 9,586 Wholesale
5,417 5,803 6,232

4,693 5,033
-138 -125 -113 1,799
-171 -1524 2,887 3,169 3,485 3,783 4,135
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
1) Based on management estimates 2) Sum of all FTTx accesses (e.g. FTTC/VDSL, Vectoring and FTTH) 3) organic view: change in base was +148k. 4) Organic view: Change in base was -90k
15
GERMANY fixed: revenue trends heading towards
Stabilization
Fixed network revenue retail (as reported) Broadband revenue1 (excl. IFRS 15)
€ mn Broadband revenues Single play revenues Other revenues € mn +5.3% Broadband 3P
1,314 1,313 1,314 1,318 1,384 Broadband 2P
-0.9% 328 334 342 346 351
Q1/18 underlying
2,392 2,385 2,379 2,419 2,371 986 979 972 972 1,033 trend yoy: +1.8%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18

1,314 1,313 1,314 1,318 1,3831 +5.3% Retail upsell strategy2
+33%
mn accesses Broadband
+8%
420 409 402 388 -11.2% +3% Entertain
373
13.0 13.4 Fiber
713 -6.5% 4.7 6.2
658 664 663 6151 3.0 3.2
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q1/18
1) change in definition – no restatement for 2017. Effect in Q1/18: Shift of €47m from “Other revenues ” to “BB revenues” .related to B2B broadband customers. 2) Percentages calculated on exact figures
16
germany: Network roll-out and ip-migration on track
INS – Status LTE rollout INS – Status fiber rollout2

POP +1pp Coverage in % and 73%
66%
Coverage in %1 millions of households
93% 94% +11%
28.0 31.2
Q1/17 Q1/18 Q1/17 Q1/18
Status IP accesses (retail & wholesale) Status IP accesses (retail & wholesale)
mn +4.5 % of lines
+3.6 100
18.5 73
14.0 57
10.4 50 43
0
Q1/16 Q1/17 Q1/18 Q1/16 Q1/17 Q1/18
1) Outdoor coverage 2) In % of households within fixed network coverage in Germany
17
TMUS: continued industry leading growth
Revenue and service revenue Net adds

US-$ bn +6.0% 000 1,854 1,433
Total revenue 1,142 1,333 1,329
Service revenue Total net adds
+8.7%
9.6 7.2 10.2 7.3 9.9 7.4 10.7 7.6 10.4 7.7 Branded: Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
 Postpaid 914 817 817 1,072 1,005
 Prepay 386 94 226 149 199
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Wholesale1 -158 422 286 633 229
Adj. EBITDA and margin (in %) Branded customers: Postpaid phone and prepay ARPU
US-$ bn 28.6 US-$ (US GAAP) Phone
26.6 27.0 27.6
22.1 Prepay
+12.8% 47.5 47.1
38.5 38.7 46.9 38.9 46.4 38.6 46.7 38.9
2.5 2.9 2.7 2.4 2.9
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
1) Wholesale includes MVNO and machine-to-machine (M2M). Amounts may not add up due to rounding
18
TMUS: executing on key drivers
Branded postpaid phone churn Bad debt expenses & losses from sale of receivables
% % of total revenue 2.0 1.9
1.33 1.6 1.4
1.18 1.07 1.0
Q1/16 Q1/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18

 Branded postpaid phone churn on record low level  Decrease reflects ongoing focus on managing customer quality
Average 4G LTE speeds (in Mbps) Q1/18 Cost of service

Download Upload % of service
32.1 12.0 revenue
29.7 9.8 21.6
7.9 22
25.8 20.4
23.8 3.3 20 19.2
0
Verizon AT&T Sprint T-Mobile Verizon AT&T Sprint T-Mobile Q1/16 Q1/17 Q1/18
 Based on T-Mobile’s analysis of national LTE results from Ookla® Speed test data  Increase mainly driven by 600 MHz roll-out
19
europe: Strong growth in customer base
Contract Net Adds BB Net Adds4

000 000
372 364 81 88
2251 265 56 602
203 47
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
FMC Net Adds TV Net Adds

000 000
216 201 51 56
175 167 44 45
1303
27
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
1) Organic view adjusted for re-classifications in Austria and Slovakia. Change in customer base is 167k 2) Organic view: adjusted for 111k re-classifications. Change in base is 171k.
3) organic view: adjusted for 137k re-classifications in Greece. Change in base is 267k 4) based on accesses
20
EUROPE: growing revenue and EBITDA
Revenue Organic revenue development

€ mn € mn +0.2%
+1.1%
2,805 -6 2,811
3,002 12
2,781 2,860 2,945 2,811 2,781 24
0
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Cons./ FX Revenue Mobile Q1/18
Decons. growth regulation
Adj. EBITDA Organic adj. EBITDA development

€ mn € mn
+1.6%
+2.5%
897 911
889 947 1,007 906 911 889
0 8 -23 37
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Cons./ FX Contribution Indirect cost Q1/18
Decons. Margin2 savings and
other
1) Mobile Data, Pay TV & fixed broadband, B2B/ICT, adjacent industries (online consumer services, energy and other) 2) Total Revenue – Direct Cost
21
EUROPE: ongoing investments in network leadership
IP migration LTE rollout

IP share of fixed network access lines LTE outdoor pop coverage 107
100
% +10pp mn and %
61 71 89% 95%
Q1/17 Q1/18 Q1/17 Q1/18
Customer base1 Fiber rollout1

mn +4.9% TV Fiber household coverage +7pp
+6.6% Broadband %
33
+4.2% Mobile Contract 26
24.5 25.7
4.1 5.8 4.3 6.2
Q1/17 Q1/18 Q1/17 Q1/18

1) ≥ 100Mbit/s coverage: FTTH, FTTB, FTTC (with Vectoring), cable/ED3. Broadband also incl. wholesale customers
22
SYSTEMS SOLUTIONS: full year outlook unchanged - Q1
impacted by Phasing
T-Systems financials Revenue
€ mn € mn
-2.3%
Total revenue Adj. EBITDA
1,704 1,688 1,707 1,819 1,665
-2.3% -40.6%
1,704 1,665 96 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Adj. EBIT and margin in %

57
€ mn -0.1 2.4 2.2 2.5
-2.3
41 38 45
-2
Q1/17 Q1/18 Q1/17 Q1/18 -38
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
23
Group Development: steady underlying delivery - TM NL
revenues impacted by IFRS 15
Revenue Mobile service revenue trend yoy (NL)
€ mn NL % -0.9 +0.9 -5.2 -7.4 -14.6 MSR trends as
-6.4% reported
Towers
1.6
564 562 545 561 528 Other1 0.6
341 345 327 342 309 MSR trends
217 6 -0.7 -1.0 excl. regulation
213 4 217 1 217 2 218 1 -1.3
(all periods) and
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 excl. IFRS 15
impact in Q1/18
Adj. EBITDA Contract net adds (NL)
€ mn NL 000
+0.4%
Towers
230 236 220 220 231 Other 77 83
69 61 66
110 119 98 94 108
124 126 126 133 130
-4 -9 -4 -7 -7 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
1) Strato was deconsolidated in Q2/17. Historic figures are also adjusted for Strato
24
Group Development: Tower business doing well
Total site development Recurring rental revenue

k +3.7% €m +3.1%
27.2 27.4 27.6 28.1 28.2 181.4 180.6 182.6 184.3 187.1
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Opex per site (avg. sites) EBITDA & EBITDA margin development
k€/site -8.8% In % 57% 59% 58% 61% 60%
3.4 3.2 3.3 3.1 +5,0%
3.0 €m
124,1 125,7 125,8 133,1 130,3
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
25
FINANCIALs: FCF, Net debt, net income AND EPS
Free cash flow1 Adj. net income

€ mn +12.5% € mn
+26.7%
1,228 1,382
94 -583 1,190
-475 460 939 942 -201
169 -1
Q1/17 Cash gen. from Capex (excl. Interest Q1/18 Q1/17 Adj. Financial D&A Taxes Minorities Q1/18
operations spectrum) & Other EBITDA result
Net debt development Adj. EPS
€ bn 50.8 €
50.5 +20.0%
0.1
-1.4 0.56
0.7
0.3 0.20 0.26 0.26 0.24
Q4/17 Free cash Layer 3 Buy Spectrum Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
flow1 acqusition back US
1) Free cash flow before dividend payments and excl. Spectrum : Q1/18: €63 mn.
26
FINANCIALS: balance sheet ratios in target corridor
€ bn
31/03/2017 30/06/2017 30/09/2017 31/12/2017 31/03/2018
Balance sheet total 148.6 141.5 139.8 141.3 138.0

Shareholders’ equity 39.8 38.6 39.1 42.5 43.7
Net debt 50.0 55.2 52.6 50.8 50.5
Net debt/adj. EBITDA1 2.3 2.5 2.3 2.3 2.3
Equity ratio 26.8% 27.3% 27.9% 30.0% 31.7%
Comfort zone ratios Current rating
Rating: A-/BBB Fitch: BBB+ stable outlook

2 – 2.5x net debt/Adj. EBITDA Moody’s: Baa1 stable outlook
25 – 35% equity ratio S&P: BBB+ stable outlook
Liquidity reserve covers redemption of the next 24 months Moody’s has changed outlook to “negative”. S&P to “credit
1) Ratios for the interim quarters calculated on the basis of previous 4 quarters watch negative” following the announcement of the
merger between TM US and Sprint end of April.
27
Executing our strategy
1 Leading European Telco:

Integrated market leader with superior margins and returns.
2 We strengthen our differentiation by best customer experience and by continuously investing into
leading access networks and our transformation programs.
3 We transform towards a lean and highly agile IP production.
4 We are self-funding DT’s transformation by disciplined cost management.
5 We will grow in all relevant financial KPI’s (ROCE, Revenue, EBITDA, FCF).
6 Our shareholders will participate with growth of dividends following FCF growth
and our prudent debt policy remains unchanged.
28
sneak preview: 2108 capital markets day
Grow
Lead In Customer Lead in Lead in Business

experience technology Productivity
ONE CONNECTIVITY INTEGRATED SECURE ICT SOLUTIONS

& PERFECT SERVICE GIGABIT NETWORKS & BIG IOT
Save for Growth Investments
Simplify, digitize, accelerate
29
Conference call with q&a Session
The conference call will be held on May 9 at 2:00 PM CET, 1:00 PM GMT, 8 AM ET.
DT Participants: Tim Hoettges (CEO), Thomas Dannenfeldt (CFO), Hannes Wittig (Head of IR)
Webcast Dial-in
 The link to the webcast will be provided here 20 minutes before the DE 0800 9656288 + code 69447490#
call starts: www.telekom.com/18Q1 UK 0800 0515931 + code 69447490#
 To ask a question, just type your question into the box below the US +1 866 7192729 + code 69447490#
stream. Other +49 69 271340801 + code 69447490#
 We webcast in HD Voice Quality
 The recording will be uploaded to YouTube after the call.
To ask a questions, please press “star one” on your touchtone
telephone. Your name will be announced when it’s your turn to ask a
question. Should you require to cancel your question, please press
“star two”.
30
FURTHER QUESTIONS
PLEASE CONTACT THE IR DEPARTMENT
Investor Relations Contact details
Phone +49 228 181 – 8 88 80 E-Mail [email protected] Contact details for all
IR representatives:
www.telekom.com/ircontacts
IR Webpage IR Twitter Account IR YouTube Channel

www.telekom.com/investors www.twitter.com/DT_IR http://www.telekom.com/youtube_ir
Follow us on
@DT_IR
31
Appendix
2018: IFRS 15 Impact on results
Outlook beginning of year 2018 Current view

Revenue Adj. EBITDA
Group -0.15 bn max. +0.1 bn1 Unchanged

Germany --1 to -1.5% Impact of IFRS 9 (-) and Unchanged
IFRS 15 (+) will be neutral
US +0.5% +0.2%1 Unchanged
Europe neglible neglible Unchanged
Group Development no outlook given no outlook given Approx. -2% on revenue and adj. EBITDA
Systems Solutions no outlook given no outlook given neglible
GHS no outlook given no outlook given neglible
1) before the positive impact of 0.2 to 0.5bn US$ announced by TM US in their 2018 outlook
33
germany mobile: service revenue (EXCL. IFRS 15)
Reported mobile service revenue Impact of mobile regulation1 Impact of convergent offers2
Q1/17 -0.8% 2.2% 0.8%
Q2/17 0.8% 1.7% 0.8%
Q3/17 0.9% 2.8% 0.7%
Q4/17 1.7% 1.9% 0.5%
Q1/18 3.2% 1.0% 0.7%
Medium term guidance (2014 – 2018 CAGR): Re-iterated

≈ +1% (without EU roaming impact)
1) Impact of MTR and EU Roaming regulation 2) Impact of MagentaEINS and Telekom LTE broadband
34
german Fixed: service revenue (EXCL. IFRS 15)
Growth rates YOY

Wholesale revenue Broadband revenue Fixed line service revenue1
Q1/17 0.0% 1.4% -0.6%
Q2/17 -0.4%2 0.8% -1.2%
Q3/17 2.8% 0.6% 0.3%2
Q4/17 2.7% 0.6% 0.5%
Q1/18 3.4% 1.8% 5.3%3 0.2%
Medium term guidance (2014 – 2018 CAGR): Re-iterated

+0.0% +2.0%
1) Fixed network core business revenue less fixed hardware revenue plus wholesale services fixed network revenue. From Q2/16 onwards we classify CPEs recurring rent revenue as fixed service revenue. Without this reclassification fixed line service revenue
growth rate would be -0.2% in Q1/18. Prior quarters growth rates have not been restated 2) Revenue in Q2/17 impacted by a negative special factor related to a settlement agreement. Adjusted growth rate at -1.5% for wholesale revenue, resp. -1.5% for fixed line
service revenue 3) change in definition – no restatement for 2017. Effect in Q1/18: Shift of €47m from “Other revenues ” to “BB revenues” underlying performance +1.8%.
35
THANK YOU!
BACKUP Q1 2018
DEUTSCHE TELEKOM Q1 2018
Check out our IR website www.telekom.com/investor-relations for:
This backup in .pdf and excel-format

The IR calender
Detailed information for debt investors
Shareholder structure
Corporate governance
For further information on the business units please refer to:
www.telekom.com
www.telekom.de
www.t-mobile.com
www.t-systems.com
Investor Relations, Bonn office

Phone +49 228 181 - 8 88 80
Fax +49 228 181 - 8 88 99
E-Mail [email protected]
Sine January 1, 2018, Vivento Customer Services GmbH (a provider of call center services) is reported in the operating segment Germany. Before that the company was assigned to the segment Group Headquarters & Group
Services. Comparative figures have been adjusted retrospectively.
With the beginning of January 1, 2018, Deutsche Telekom Group applies IFRS 15 “Revenue from Contracts with Customers”. Application of the standard is mandatory for reporting periods beginning on or after January 1, 2018. This
standard provides a single, principles-based five-step model for the determination and recognition of revenue to be applied to all contracts with customers. It replaces in particular IAS 18 “Revenue” and IAS 11 “Construction
Contracts” and has a material effect on the presentation of Deutsche Telekom’s results of operations and financial position. Deutsche Telekom utilizes the option for simplified initial application, i.e., contracts that are not completed
by January 1, 2018 have been accounted for as if they had been recognized in accordance with IFRS 15 from the very beginning. The cumulative effect arising from the transition has been recognized as an adjustment to the
opening balance of equity in the year of initial application. Prior-year comparatives have not been adjusted; instead, Deutsche Telekom has provided an explanation of the reasons for the changes in items in the statement of financial
position and the income statement for the current period as a result of applying IFRS 15 for the first time.
Since January 1, 2018, Deutsche Telekom Group applies IFRS 9 „Financial Instruments.“ Application of the standard is mandatory for reporting periods beginning on or after January 1, 2018. The standard introduces new
classification and measurement requirements for financial instruments and replaces IAS 39. Deutsche Telekom utilizes the option for simplified initial application. The cumulative effect arising from the transition has been
recognized as an adjustment to the opening balance of equity in the year of initial application. Prior-year comparatives have not been adjusted; instead, Deutsche Telekom has provided an explanation of the reasons for the changes
in items in the statement of financial position and the income statement for the current period as a result of applying IFRS 9 for the first time.
The figures shown in this report were rounded in accordance with standard business rounding principles. As a result, the total indicated may not be equal to the precise sum of the individual figures.
DT IR BackUp Q1‐18 1 / 82
CONTENT DT
GERMANY SYSTEMS SOLUTIONS

At a Glance 3 Financials 29 Financials 69
Excellent market position 5 EBITDA reconciliation 30 EBITDA reconciliation 70
Operationals & Mobile Communication KPIs 31
GROUP Additional information 32 GROUP DEVELOPMENT
Adjusted for special factors 8 Financials 73
EBITDA reconciliation 9 UNITED STATES EBITDA reconciliation 74
As reported 10 Financials 44 Netherlands 75
Special factors in the consolidated income statement 11 EBITDA reconciliation 45
Details on special factors I & II 12 - 13 Operationals 46 - 47 GHS
Change in the composition of the group 14 Financials 79
Consolidated statement of financial position 15 - 16 EUROPE EBITDA reconciliation 80
Provisions for pensions 17 Financials 50
Maturity profile 18 EBITDA reconciliation 51 GLOSSARY 82
Liquidity reserves 19 Greece 52
DT/TMUS Funding 20 Romania 54
Net debt 21 Hungary 56
Net debt development 22 Poland 58
Cash capex 23 Czech Republic 60
Free cash flow 24 Croatia 62
Personnel 25 Slovakia 64
Exchange rates 26 Austria 66
GROUP
AT A GLANCE
Q1 Q2 Q3 Q4 FY Q1 Change
2017 2017 2017 2017 2017 2018
Note millions of € millions of € millions of € millions of € millions of € millions of € %
REVENUE
Germany 5.397 5.371 5.488 5.675 21.931 5.325 (1,3)
United States 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
Europe 2.781 2.860 2.945 3.002 11.589 2.811 1,1
Systems Solutions 1.704 1.688 1.707 1.819 6.918 1.665 (2,3)
Group Development 595 562 545 561 2.263 528 (11,3)
Group Headquarters & Group Services 735 785 741 674 2.935 651 (11,4)
Reconciliation (1.547) (1.612) (1.641) (1.623) (6.425) (1.511) 2,4
GROUP 18.646 18.890 18.251 19.160 74.947 17.924 (3,9)
NET REVENUE
Germany 5.069 5.036 5.139 5.308 20.552 4.987 (1,6)
United States 8.982 9.236 8.465 9.052 35.735 8.455 (5,9)
Europe 2.695 2.772 2.848 2.903 11.218 2.727 1,2
Systems Solutions 1.369 1.349 1.352 1.435 5.504 1.332 (2,7)
Group Development 444 415 394 408 1.660 376 (15,3)
Group Headquarters & Group Services 88 83 52 55 278 48 (45,5)
GROUP 18.646 18.890 18.251 19.160 74.947 17.924 (3,9)
EBITDA (ADJUSTED FOR SPECIAL FACTORS)

Germany 2.055 2.086 2.177 2.094 8.412 2.082 1,3
United States 2.386 2.640 2.288 2.003 9.316 2.332 (2,3)
Europe 889 947 1.007 906 3.749 911 2,5
Systems Solutions 96 136 131 147 509 57 (40,6)
Group Development 238 236 220 220 915 231 (2,9)
Group Headquarters & Group Services (113) (76) (102) (370) (661) (70) 38,1
Reconciliation (1) (25) (1) 15 (10) 5 n.a.
GROUP 5.550 5.944 5.720 5.015 22.230 5.549 (0,0)
Proportional EBITDA 4.414 4.690 4.543 3.780 17.427 4.388 (0,6)
GROUP
AT A GLANCE II
2017 2017 2017 2017 2017 2018
EBITDA MARGIN (ADJUSTED FOR SPECIAL FACTORS)
(EBITDA / TOTAL REVENUE)
Germany 38,1 38,8 39,7 36,9 38,4 39,1 1,0p
United States 26,6 28,6 27,0 22,1 26,1 27,6 1,0p
Europe 32,0 33,1 34,2 30,2 32,3 32,4 0,4p
Systems Solutions 5,6 8,1 7,7 8,1 7,4 3,4 (2,2p)
Group Development 40,0 42,0 40,4 39,2 40,4 43,8 3,8p
Group Headquarters & Group Services (15) (10) (14) (55) (23) (11) 4,0p
GROUP 29,8 31,5 31,3 26,2 29,7 31,0 1,2p
CASH CAPEX
Germany 1.005 1.052 1.052 1.105 4.214 1.145 13,9
United States 1.442 8.463 1.243 784 11.932 1.143 (20,7)
Europe 475 403 395 601 1.874 438 (7,8)
Group Development 81 57 76 76 290 85 4,9
Group Headquarters & Group Services 242 239 231 294 1.005 248 2,5
Reconciliation (51) (65) (63) (26) (204) (3) 94,1
GROUP 3.280 10.240 3.021 2.954 19.494 3.139 (4,3)
- thereof spectrum investment 35 7.246 19 94 7.395 63 80,0
NET PROFIT (LOSS)

adjusted for special factors 939 1.199 1.244 2.657 6.039 1.190 26,7
as reported 747 874 507 1.332 3.461 992 32,8
FREE CASH FLOW (BEFORE DIVIDEND PAYMENTS AND
SPECTRUM INVESTMENT) 1.228 1.302 1.873 1.094 5.497 1.382 12,5
Proportional free cash flow 1.139 1.080 1.561 579 4.359 1.132 (0,6)
NET DEBT 49.963 55.249 52.635 50.791 50.791 50.455 1,0
DT GROUP
EXCELLENT MARKET POSITION1
Q1 Q2 Q3 Q4 Q1 Change compared to Change compared to
Note 2017 2017 2017 2017 2018 prior quarter prior year
('000) ('000) ('000) ('000) ('000) abs. % abs. %
BROADBAND RETAIL LINES (END OF PERIOD) 2, 3 18.609 18.728 18.851 19.047 19.376 329 1,7 767 4,1
Germany 12.989 13.035 13.105 13.209 13.357 148 1,1 368 2,8
Europe 5.444 5.509 5.558 5.647 5.821 174 3,1 377 6,9
Greece 1.653 1.680 1.714 1.757 1.805 48 2,7 152
Romania 1.186 1.191 1.187 1.182 1.210 28 2,4 24 2,0
Hungary 1.026 1.047 1.059 1.071 1.086 15 1,4 60 5,8
Poland 20 18 17 15 13 (2) (13,3) (7) (35,0)
Czech Republic 133 133 133 166 179 13 7,8 46 34,6
Croatia 653 655 654 652 702 50 7,7 49 7,5
Slovakia 523 532 541 552 570 18 3,3 47 9,0
other 250 253 252 251 254 3 1,2 4 1,6
Group Development 176 184 188 191 198 7 3,7 22 12,5
Netherlands 176 184 188 191 198 7 3,7 22 12,5
FIXED NETWORK LINES (END OF PERIOD) 4 28.310 28.125 27.962 27.869 27.756 (113) (0,4) (554) (2,0)
Germany 19.648 19.477 19.352 19.239 19.149 (90) (0,5) (499) (2,5)
Europe 8.486 8.464 8.422 8.439 8.409 (30) (0,4) (77) (0,9)
Greece 2.547 2.539 2.536 2.547 2.551 4 0,2 4 0,2
Romania 1.937 1.922 1.894 1.865 1.823 (42) (2,3) (114) (5,9)
Hungary 1.630 1.637 1.634 1.632 1.634 2 0,1 4 0,2
Poland 33 31 29 32 27 (5) (15,6) (6) (18,2)
Czech Republic 143 146 153 197 220 23 11,7 77 53,8
Croatia 992 986 974 967 959 (8) (0,8) (33) (3,3)
Slovakia 854 855 855 858 860 2 0,2 6 0,7
other 351 348 345 340 334 (6) (1,8) (17) (4,8)
Group Development 176 184 188 191 198 7 3,7 22 12,5
Netherlands 176 184 188 191 198 7 3,7 22 12,5
MOBILE SUBSCRIBERS (END OF PERIOD) 165.848 163.091 165.346 168.402 169.929 1.527 0,9 4.081 2,5
Germany 42.114 42.011 42.534 43.125 42.730 (395) (0,9) 616 1,5
United States 72.597 69.562 70.731 72.585 74.040 1.455 2,0 1.443 2,0
Europe 47.348 47.688 48.205 48.842 49.254 412 0,8 1.906 4,0
Greece 7.733 7.737 7.867 7.981 8.053 72 0,9 320 4,1
Romania 5.428 5.278 5.231 5.258 5.236 (22) (0,4) (192) (3,5)
Hungary 5.304 5.390 5.401 5.293 5.298 5 0,1 (6) (0,1)
Poland 10.229 10.251 10.297 10.454 10.509 55 0,5 280 2,7
Czech Republic 6.097 6.155 6.176 6.176 6.156 (20) (0,3) 59 1,0
Croatia 2.210 2.237 2.297 2.244 2.229 (15) (0,7) 19 0,9
Slovakia 2.230 2.235 2.245 2.243 2.282 39 1,7 52 2,3
Austria 4.713 4.984 5.201 5.702 6.071 369 6,5 1.358 28,8
other 3.404 3.420 3.490 3.490 3.419 (71) (2,0) 15 0,4
Group Development 3.789 3.830 3.876 3.850 3.905 55 1,4 116 3,1
Netherlands 3.789 3.830 3.876 3.850 3.905 55 1,4 116 3,1
1 Figures rounded to the nearest million. The total is calculated on the basis of precise numbers. Percentages calculated on the basis of figures shown.
2 Broadband lines in operation excluding lines for internal use and public telecommunications; including IP-based access lines. Including BB via cable in Hungary.
3 As of January 1, 2018, the broadband accesses were reclassified. This includes all accesses with an underlying broadband technology, regardless of which service the customer uses. Figures of the previous periods were not adjusted.
4 Fixed network lines in operation excluding lines for internal use and public telecommunications.
NOTES
CONTENT DT

DT CONSOLIDATED INCOME STATEMENT
ADJUSTED FOR SPECIAL FACTORS
2017 2017 2017 2017 2017 2018
NET REVENUE 18.646 18.890 18.251 19.160 74.947 17.924 (3,9)
Other operating income 251 223 231 431 1.137 343 36,7
Changes in inventories 40 (6) (3) (11) 21 1 (97,5)
Own capitalized costs 542 563 563 624 2.292 559 3,1
Goods and services purchased (9.284) (9.218) (8.868) (10.562) (37.933) (8.683) 6,5
Personnel costs (3.887) (3.708) (3.628) (3.722) (14.945) (3.787) 2,6
Other operating expenses (758) (798) (826) (906) (3.289) (808) (6,6)
Depreciation, amortization, and impairment losses (3.191) (3.154) (2.975) (3.152) (12.472) (3.097) 3,0
PROFIT (LOSS) FROM OPERATIONS (EBIT) 2.359 2.791 2.745 1.863 9.757 2.452 3,9
EBIT margin (EBIT / net revenue) % 12,7 14,8 15,0 9,7 13,0 13,7 1,0p
Profit (loss) from financial activities (1.355) (515) (490) (535) (2.895) (413) 69,5
of which: finance costs (638) (512) (541) (509) (2.201) (424) 33,5
PROFIT (LOSS) BEFORE INCOME TAXES (EBT) 1.004 2.276 2.256 1.328 6.863 2.038 n.a.
Income taxes 0 (753) (760) 2.462 949 (583) n.a.
PROFIT (LOSS) 1.004 1.523 1.495 3.790 7.812 1.455 44,9
Profit (loss) attributable to non-controlling interests 64 324 252 1.133 1.773 265 n.a.
NET PROFIT (LOSS) 939 1.199 1.244 2.657 6.039 1.190 26,7
GROUP
EBITDA RECONCILIATION
2017 2017 2017 2017 2017 2018
NET REVENUE 18.646 18.890 18.251 19.160 74.947 17.924 (3,9)
NET PROFIT (LOSS) 747 874 507 1.332 3.461 992 32,8
+ Profit (loss) attributable to non-controlling interests 62 317 591 1.120 2.090 274 n.a.
= Profit (loss) 809 1.192 1.098 2.452 5.551 1.266 56,5
- Income taxes 78 (686) (1.323) 2.489 558 (494) n.a.
= Profit (loss) before income taxes = EBT 731 1.877 2.421 (37) 4.994 1.760 n.a.
- Profit (loss) from financial activities (2.040) (953) (676) (721) (4.390) (411) 79,9
PROFIT (LOSS) FROM OPERATIONS (EBIT) 2.771 2.830 3.098 684 9.383 2.171 (21,7)
- Depreciation, amortization and impairment losses (3.191) (3.156) (4.220) (4.019) (14.586) (3.097) 2,9
= EBITDA 5.963 5.986 7.318 4.703 23.969 5.269 (11,6)
EBITDA margin (EBITDA/net revenue) % 32,0 31,7 40,1 24,5 32,0 29,4 (2,6p)
- Special factors affecting EBITDA 412 42 1.598 (312) 1.740 (281) n.a.
= EBITDA ADJUSTED FOR SPECIAL FACTORS 5.550 5.944 5.720 5.015 22.230 5.549 (0,0)
EBITDA margin (adjusted for special factors)
(EBITDA / net revenue) % 29,8 31,5 31,3 26,2 29,7 31,0 1,2p
DT CONSOLIDATED INCOME STATEMENT
AS REPORTED
2017 2017 2017 2017 2017 2018
NET REVENUE 18.646 18.890 18.251 19.160 74.947 17.924 (3,9)
Other operating income 770 479 2.081 488 3.819 373 (51,6)
Changes in inventories 40 (6) (3) (11) 21 1 (97,5)
Own capitalized costs 542 563 563 624 2.292 559 3,1
Goods and services purchased (9.312) (9.281) (8.910) (10.658) (38.161) (8.718) 6,4
Personnel costs (3.964) (3.824) (3.817) (3.900) (15.504) (4.057) (2,3)
Other operating expenses (761) (835) (847) (1.001) (3.444) (813) (6,8)
Depreciation, amortization, and impairment losses (3.191) (3.156) (4.220) (4.019) (14.586) (3.097) 2,9
PROFIT (LOSS) FROM OPERATIONS (EBIT) 2.771 2.830 3.098 684 9.383 2.171 (21,7)
EBIT margin (EBIT / net revenue) % 14,9 15,0 17,0 3,6 12,5 12,1 (2,8p)
Profit (loss) from financial activities (2.040) (953) (676) (721) (4.390) (411) 79,9
of which: finance costs (637) (511) (540) (508) (2.197) (422) 33,8
PROFIT (LOSS) BEFORE INCOME TAXES (EBT) 731 1.877 2.421 (37) 4.994 1.760 n.a.
Income taxes 78 (686) (1.323) 2.489 558 (494) n.a.
PROFIT (LOSS) 809 1.192 1.098 2.452 5.551 1.266 56,5
NET PROFIT (LOSS) 747 874 507 1.332 3.461 992 32,8
GROUP
SPECIAL FACTORS IN THE CONSOLIDATED INCOME STATEMENT
Q1 Q2 Q3 Q4 FY Q1
2017 2017 2017 2017 2017 2018
Note millions of € millions of € millions of € millions of € millions of € millions of €
NET REVENUE 0 0 0 0 0 0
Other operating income 1,2 519 256 1.850 57 2.683 30
Changes in inventories 0 0 0 0 0 0
Own capitalized costs 0 0 0 0 0 0
Goods and services purchased (28) (62) (42) (96) (229) (35)
Personnel costs (77) (115) (189) (178) (559) (270)
Other operating expenses (2) (37) (21) (95) (155) (5)
Depreciation, amortization, and impairment losses 3, 4 0 (2) (1.245) (867) (2.114) 0
PROFIT (LOSS) FROM OPERATIONS (EBIT) 412 40 352 (1.178) (374) (281)
Profit (loss) from financial activities (685) (438) (187) (186) (1.495) 2
PROFIT (LOSS) BEFORE INCOME TAXES (EBT) (272) (398) 166 (1.365) (1.869) (278)
Income taxes 78 67 (563) 27 (392) 89
PROFIT (LOSS) (195) (331) (397) (1.338) (2.261) (189)
Profit (loss) attributable to non-controlling interests (2) (7) 339 (13) 317 9
NET PROFIT (LOSS) (193) (324) (736) (1.324) (2.578) (198)
1 Q1/2017: Sale of Strato; Q2/2017: Sale of Scout and DeTe Medien

2 Q3/2017: Income from the settlement with BT (0.2 bn. €) ; Income from the reversal of impairment on spectrum licenses TM US (1.7 bn. €)
3 Q3/2017: Impairment Goodwill T-Systems Market Unit (1.2 bn. €)
4 Q4/2017: Impairment Goodwill T-Mobile Poland (0.8 bn €)
GROUP
DETAILS ON SPECIAL FACTORS I
2017 2017 2017 2017 2017 2018
EFFECT ON OPERATING EXPENSES (107) (215) (253) (369) (943) (310) n.a.
of which: expenses / income for early retirement (civil servants) 5 (7) (7) 5 (4) (190) n.a.
of which: expenses for severance payments (35) (53) (139) (114) (342) (20) 42,9
of which: expenses / income for partial retirement (46) (53) (43) (64) (205) (59) (28,3)
of which: expenses for other personnel restructuring charges (1) (1) 0 (1) (4) 0 n.a.
of which: Vivento transfer payments 0 (1) (1) (3) (5) (1) n.a.
of which: restructuring charges (12) (11) (13) (49) (85) (21) (75,0)
of which: expenses due to de-consolidations and other asset sales 8 7 (10) (57) (53) (2) n.a.
of which: others (26) (95) (40) (85) (246) (17) 34,6
EFFECT ON OTHER OPERATING INCOME 519 256 1.850 57 2.683 30 (94,2)
of which: income due to asset sales 1 519 256 (1) 57 831 30 (94,2)
of which: others 2 0 0 1.852 0 1.852 0 n.a.
EFFECT ON REVENUE 0 0 0 0 0 0 n.a.
EFFECT ON EBITDA 412 42 1.598 (312) 1.740 (281) n.a.
DEPRECIATION, AMORTIZATION AND IMPAIRMENT 3, 4 0 (2) (1.245) (867) (2.114) 0 n.a.
EFFECT ON PROFIT FROM OPERATIONS = EBIT 412 40 352 (1.178) (374) (281) n.a.
1 Q1/2017: Sale of Strato; Q2/2017: Sale of Scout and DeTe Medien

2 Q3/2017: Income from the settlement with BT (0.2 bn. €) ; Income from the reversal of impairment on spectrum licenses TM US (1.7 bn. €)
4 Q4/2017: Impairment Goodwill T-Mobile Poland (0.8 bn €)
GROUP
DETAILS ON SPECIAL FACTORS II
2017 2017 2017 2017 2017 2018
EFFECT ON PROFIT (LOSS) FROM FINANCIAL ACTIVITIES (685) (438) (187) (186) (1.495) 2 n.a.
EFFECT ON PROFIT (LOSS) BEFORE INCOME TAXES (272) (398) 166 (1.365) (1.869) (278) (2,2)
EFFECT ON TAXES 78 67 (563) 27 (392) 89 14,1
Tax effect of special factors within EBIT 28 48 76 77 229 96 n.a.
Tax effect of special factors on profit (loss) from financial activities 50 19 (639) (50) (620) (7) n.a.
Other tax effects 0 0 0 0 0 0 n.a.
EFFECT ON PROFIT (LOSS) ATTRIBUTABLE TO NON-
CONTROLLING INTERESTS (2) (7) 339 (13) 317 9 n.a.
EFFECT ON NET PROFIT (LOSS) (193) (324) (736) (1.324) (2.578) (198) (2,6)
CHANGE IN THE COMPOSITION OF THE GROUP IN THE CURRENT YEAR
REPORTED PLUS MINUS TOTAL PRO REPORTED ORGANIC

NUMBERS ACQUISITION EFFECTS DECONSOLIDATION EFFECTS EFFECT FORMA NUMBERS CHANGE
United States Group System United System Group
Q1 2017 Total Germany Europe Development Solutions GHS Total millions Germany States Europe Solutions Development GHS Q1 2017 Q1 2018
Note millions of € millions of € millions of € millions of € millions of € millions of millions of € millions of € of € millions of € millions of € millions of € millions of € millions of € millions of € millions of € millions of € %
NET REVENUE 18.646 2 0 2 0 0 0 0 52 0 0 0 0 30 22 (50) 18.596 17.924 (3,6)
PROFIT (LOSS) FROM OPERATIONS = EBIT 2.771 (12) 0 (12) 0 0 0 0 547 0 0 0 526 21 (559) 2.212 2.171 (1,9)
Profit (loss) from financial activities (2.040) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (2.040) (411) 79,9
of which finance costs (637) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (637) (422) 33,8
PROFIT (LOSS) BEFORE INCOME TAXES = EBT 731 (12) 0 (12) 0 0 0 0 547 0 0 0 0 526 21 (559) 172 1.760 n.a
Income taxes 78 0 0 0 0 0 0 0 (3) 0 0 0 0 (1) (2) 3 81 274 n.a.
PROFIT (LOSS) 809 (12) 0 (12) 0 0 0 0 544 0 0 0 0 525 19 (556) 253 992 n.a.
ASSETS
Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Change Change
compared to compared to
2017 2017 2017 2017 2018
prior quarter prior year
Note millions of € millions of € millions of € millions of € millions of € % %
CURRENT ASSETS 27.663 17.808 18.344 20.392 21.706 6,4 (21,5)
Cash and cash equivalents 9.542 2.441 2.860 3.312 3.618 9,2 (62,1)
Trade and other receivables 9.093 9.161 9.196 9.723 9.121 (6,2) 0,3
Contract assets 0 0 0 0 1.728 n.a. n.a.
Current recoverable income taxes 192 181 160 236 246 4,2 28,1
Other financial assets 4.907 2.116 2.442 3.329 2.918 (12,3) (40,5)
Inventories 1.646 1.729 1.520 1.985 1.819 (8,4) 10,5
Current and non-current assets and
disposal groups held for sale 148 204 371 161 134 (16,8) (9,5)
Other assets 2.136 1.975 1.795 1.646 2.122 28,9 (0,7)
NON-CURRENT ASSETS 120.961 123.682 121.497 120.943 116.319 (3,8) (3,8)
Intangible assets 60.269 64.809 63.577 62.865 61.957 (1,4) 2,8
Property, plant and equipment 46.788 46.203 46.081 46.878 46.576 (0,6) (0,5)
Contract costs 0 0 0 0 1.286 n.a. n.a.
Investments accounted for using the equity method 722 606 601 651 571 (12,3) (20,9)
Other financial assets 6.971 6.417 5.963 5.716 1.829 (68,0) (73,8)
Deferred tax assets 5.477 4.898 4.498 4.013 3.199 (20,3) (41,6)
Other assets 733 748 778 819 902 10,1 23,1
TOTAL ASSETS 148.624 141.490 139.841 141.334 138.025 (2,3) (7,1)
LIABILITIES AND SHAREHOLDERS' EQUITY
Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Change Change
2017 2017 2017 2017 2018
LIABILITIES 108.806 102.896 100.787 98.864 94.334 (4,6) (13,3)
CURRENT LIABILITIES 32.375 27.200 25.937 27.366 26.223 (4,2) (19,0)
Financial liabilities 14.871 10.351 9.250 8.358 8.905 6,5 (40,1)
Trade and other payables 8.983 8.735 8.516 10.971 9.132 (16,8) 1,7
Income tax liabilities 238 358 341 224 307 37,1 29,0
Other provisions 3.076 2.796 2.953 3.372 3.082 (8,6) 0,2
Liabilities directly associated with non-current assets and
disposal groups held for sale 133 0 0 0 0 n.a. n.a.
Other liabilities 5.075 4.959 4.877 4.440 2.913 (34,4) (42,6)
Contract Liabilities 0 0 0 0 1.885 n.a. n.a.
NON-CURRENT LIABILITIES 76.431 75.696 74.850 71.498 68.111 (4,7) (10,9)
Financial liabilities 50.402 50.638 49.387 49.171 48.799 (0,8) (3,2)
Provisions for pensions and other employee benefits 8.293 8.113 8.185 8.375 5.264 (37,1) (36,5)
Other provisions 3.285 3.215 3.220 3.155 3.115 (1,3) (5,2)
Deferred tax liabilities 10.025 9.582 10.060 6.967 7.078 1,6 (29,4)
Other liabilities 4.427 4.148 3.999 3.831 3.321 (13,3) (25,0)
Contract Liabilities 0 0 0 0 533 n.a. n.a.
SHAREHOLDERS' EQUITY 39.818 38.594 39.055 42.470 43.691 2,9 9,7
Issued capital 11.973 12.189 12.189 12.189 12.189 0,0 1,8
Capital reserves 53.349 54.574 54.638 55.010 54.761 (0,5) 2,6
Retained earnings incl. carryforwards (35.971) (38.622) (38.656) (38.750) (34.472) 11,0 4,2
Total other comprehensive income 145 (558) (1.055) (1.127) (1.332) (18,2) n.a.
Net profit (loss) 747 1.621 2.129 3.461 992 (71,3) 32,8
Treasury shares (50) (49) (49) (49) (49) 0,0 2,0
Non-controlling interests 9.625 9.439 9.859 11.737 11.603 (1,1) 20,6
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 148.624 141.490 139.841 141.334 138.025 (2,3) (7,1)
DT GROUP
PROVISIONS FOR PENSIONS
2017 2016 2015 2014 2013
millions of € millions of € millions of € millions of € millions of €
FROM DEFINED BENEFIT OBLIGATION TO PROVISION IN
BALANCE SHEET
Present value of obligation (DBO) 1 11.462 11.427 10.753 10.940 8.965
Plan assets (3.102) (2.990) (2.744) (2.498) (1.973)
Others 15 14 19 23 14
Provision in balance sheet 8.375 8.451 8.028 8.465 7.006
PENSION COSTS INCLUDED IN P&L (INCLUDED EXPECTED

RETURN ON PLAN ASSETS) 402 396 442 445 388
thereof included in EBITDA 266 230 285 220 160
thereof included in financial result 136 166 157 225 228
CASH PAYMENTS FOR PENSIONS

1) funding of plan assets by DT (investment in financial assets) 10 264 276 266 269
2) benefits paid through plan assets 2 31 32 31 30 42
3) benefits paid through provision (included in cash flow from operations) 378 375 386 298 366
cash payments included in cash flow statement = 1) + 3) 388 639 662 564 635
cash payments included in free cash flow = 3) 378 375 386 298 366
CHANGE IN THE PRESENT VALUE OF THE OBLIGATION

(EXAMPLE 2015)
End of 2016 11.427
pension costs included in P&L 450
benefits paid (378)
actuarial losses/gains 3 (11)
F/X (29)
Others 3
End of 2017 11.462
1 Increase in obligation mainly due to a change in the discount rate.
2 The sum of payments through plan assets and the benefit paid through provisions equal the "benefits paid" in "Change in the present value of the obligation".
3 Actuarial losses/gains are via other comprehensive income directly billed vs. equity.
WELL-BALANCED MATURITY PROFILE AS OF MARCH 31, 2018
STRONG LIQUIDITY AS OF MARCH 31, 2018
DT/TMUS FUNDING - CREDIT POSITIVE FOR DT
GROUP
NET DEBT
Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Change Change
2017 2017 2017 2017 2018
Bonds 52.791 48.450 46.816 45.453 44.261 (2,6) (16,2)

Other financial liabilities 10.860 10.998 10.461 10.603 12.074 13,9 11,2
GROSS DEBT 63.651 59.448 57.277 56.056 56.337 0,5 (11,5)
Cash and cash equivalents 9.542 2.441 2.860 3.312 3.618 9,2 (62,1)
Available-for-sale/held-for-trading financial assets 7 7 7 7 0 n.a. n.a.
Other financial assets 4.139 1.752 1.775 1.946 2.264 16,3 (45,3)
NET DEBT 49.963 55.249 52.635 50.791 50.455 (0,7) 1,0
NET DEBT DEVELOPMENT Q1 2018
DT GROUP
CASH CAPEX
Q1 Q2 Q3 Q4 FY Q1
2017 2017 2017 2017 2017 2018 Change
CASH CAPEX
Germany 1.005 1.052 1.052 1.105 4.214 1.145 13,9
United States 1.442 8.463 1.243 784 11.932 1.143 (20,7)
Europe 475 403 395 601 1.874 438 (7,8)
Group Development 81 57 76 76 290 85 4,9
Group Headquarters & Group Services 242 239 231 294 1.005 248 2,5
Reconciliation (51) (65) (63) (26) (204) (3) 94,1
GROUP 1 3.280 10.240 3.021 2.954 19.494 3.139 (4,3)
- thereof spectrum investment 35 7.246 19 94 7.395 63 80,0
1 Amounts of payouts for property, plant and equipment and intangible assets excluding goodwill.
DT GROUP
FREE CASH FLOW
2017 2017 2017 2017 2017 2018
Net profit (loss) 747 874 507 1.332 3.461 992 32,8
PROFIT (LOSS) AFTER INCOME TAXES 809 1.192 1.098 2.452 5.551 1.266 56,5
Depreciation, amortization and impairment losses 3.191 3.156 4.220 4.019 14.586 3.097 (2,9)
Income tax expense/(benefit) (78) 686 1.323 (2.489) (558) 494 n.a.
Interest (income) and interest expenses 637 511 540 508 2.197 422 (33,8)
Other financial (income) expense 1.406 445 139 279 2.269 58 (95,9)
Share of (profit) loss of associates and joint ventures
accounted for using the equity method (4) (3) (3) (66) (76) (69) n.a.
(Profit) loss on the disposal of fully consolidated (519) (31) 2 11 (537) 0 n.a.
(Income) loss from the sale of stakes accounted for using the
equity method (EE) 0 (226) 0 0 (226) 0 n.a.
Other non-cash transactions 119 66 (1.742) 110 (1.447) 112 (5,9)
(Gain) loss from the disposal of intangible assets and
property, plant and equipment (33) (2) 19 (87) (103) (65) (97,0)
Change in assets carried as working capital 358 (467) (26) (1.740) (1.874) 326 (8,9)
Change in provisions (70) (256) 154 437 265 (282) n.a.
Change in other liabilities carried as working capital (531) (31) (441) 1.054 51 (593) (11,7)
Income taxes received (paid) (80) (100) (204) (250) (634) (124) (55,0)
Dividends received 75 13 153 0 241 163 n.a.
Net payments from entering into or canceling interest rate
swaps 0 0 0 0 0 0 n.a.
CASH GENERATED FROM OPERATIONS 5.280 4.955 5.232 4.238 19.706 4.805 (9,0)
Interest received (paid) (926) (752) (424) (408) (2.509) (509) 45,0
NET CASH FROM OPERATING ACTIVITIES 4.355 4.204 4.808 3.830 17.196 4.297 (1,3)
Cash outflows for investments in
(proceeds from disposal of) (3.127) (2.903) (2.935) (2.736) (11.699) (2.916) 6,7
Intangible assets (718) (7.983) (682) (941) (10.324) (809) (12,7)
Property, plant and equipment (2.444) (2.166) (2.272) (1.889) (8.770) (2.170) 11,2
Spectrum investment 35 7.246 19 94 7.395 63 80,0
FREE CASH FLOW (BEFORE DIVIDEND PAYMENTS AND
SPECTRUM) 1.228 1.301 1.873 1.094 5.497 1.382 12,5
DT GROUP
PERSONNEL
Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Change compared to Change compared to

AT REPORTING DATE Note 2017 2017 2017 2017 2018 prior quarter prior year
abs. % abs. %
Germany 65.917 65.488 65.274 64.798 64.695 (103) (0,2) (1.222) (1,9)
United States 42.925 43.566 44.394 45.888 45.119 (769) (1,7) 2.194 5,1
Europe 47.378 47.610 47.579 47.421 47.986 565 1,2 608 1,3
Systems Solutions 37.839 37.801 37.596 37.924 37.963 39 0,1 124 0,3
Group Development 2.549 1.980 1.949 1.967 1.971 4 0,2 (578) (22,7)
Group Headquarters & Group Services 19.940 19.690 19.551 19.351 19.192 (159) (0,8) (748) (3,8)
GROUP 216.548 216.135 216.343 217.349 216.926 (423) (0,2) 378 0,2
of which: Domestic 104.231 103.014 102.652 101.901 101.579 (322) (0,3) (2.652) (2,5)
of which: Civil servants (in Germany, with an active service
relationship) 15.871 15.846 15.726 15.482 15.077 (405) (2,6) (794) (5,0)
of which: International 112.317 113.121 113.690 115.448 115.347 (101) (0,1) 3.030 2,7
Q1 Q2 Q3 Q4 Q1 Change compared to
AVERAGE Note 2017 2017 2017 2017 2018 prior year
abs. %
Germany 65.983 65.474 65.385 65.086 64.818 (1.165) (1,8)
United States 43.497 43.237 43.839 45.166 45.315 1.818 4,2
Europe 47.130 47.509 47.621 47.402 47.901 771 1,6
Systems Solutions 37.840 37.775 37.578 37.786 37.926 86 0,2
Group Development 2.599 1.989 1.956 1.965 1.970 (629) (24,2)
Group Headquarters & Group Services 19.976 19.878 19.609 19.537 19.376 (600) (3,0)
GROUP 217.026 215.862 215.988 216.941 217.306 280 0,1
of which: Domestic 104.359 103.167 102.737 102.449 101.895 (2.464) (2,4)
of which: Civil servants (in Germany, with an active service
relationship) 15.906 15.850 15.762 15.608 15.271 (635) (4,0)
of which: International 112.727 112.695 113.251 114.493 115.411 2.684 2,4
EXCHANGE RATES
AVERAGE
Q1 Q2 Q3 Q4 FY Q1
2017 2017 2017 2017 2017 2018
1€ 1€ 1€ 1€ 1€ 1€
US Dollar (USD) 1,06469 1,08192 1,17453 1,17752 1,12932 1,22921
British pound (GBP) 0.86005 0,86026 0,89786 0,88761 0,87671 0,88340
Czech korunas (CZK) 27,02065 26,81334 26,08514 25,64734 26,32972 25,40263
Croatian kunas (HRK) 7,46718 7,45359 7,42567 7,53318 7,46386 7,43793
Hungarian forints (HUF) 309,09362 309,46069 306,41761 311,61191 309,19452 311,02748
Macedonian Denar (MKD) 61,56872 61,58923 61,58090 61,56612 61,58090 61,56839
Polish Zloty (PLN) 4,32077 4,27205 4,25847 4,23134 4,25804 4,17978
Romanian leu (RON) 4.52137 4,53608 4,58230 4,61979 4,56850 4,65543
END OF PERIOD
Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31
2017 2017 2017 2017 2018
1€ 1€ 1€ 1€ 1€
US Dollar (USD) 1,06830 1,14060 1,18135 1,19990 1,23190
British pound (GBP) 0,85580 0,87880 0,88220 0,88759 0,87555
Czech korunas (CZK) 27,02700 26,20650 25,93751 25,57800 25,42401
Croatian kunas (HRK) 7.43710 7,41075 7,49423 7,44275 7,43262
Hungarian forints (HUF) 307,89500 309,35000 311,04489 310,27956 312,21998
Macedonian Denar (MKD) 61,57000 62,53000 61,64012 61,50364 61,58318
Polish Zloty (PLN) 4,22070 4,22900 4,31390 4,17875 4,21079
Romanian leu (RON) 4.55275 4,55450 4,59920 4,65851 4,65606
Please note: the above quarterly and yearly average exchange rates are given as an indication only.
NOTES
CONTENT DT

GERMANY
FINANCIALS (ADJUSTED FOR SPECIAL FACTORS)
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
NET REVENUE 5.069 5.036 5.139 5.308 20.552 4.987 (1,6)
EBITDA 2.055 2.086 2.177 2.094 8.412 2.082 1,3
EBITDA margin (EBITDA / total revenue) % 38,1 38,8 39,7 36,9 38,4 39,1 1.0p
Depreciation, amortization and impairment losses (935) (953) (963) (977) (3.828) (980) (4,8)
Profit (loss) from operations = EBIT 1.120 1.133 1.214 1.117 4.584 1.102 (1,6)
CASH CAPEX 1.005 1.052 1.052 1.105 4.214 1.145 13,9
CASH CONTRIBUTION 1.050 1.034 1.125 989 4.198 937 (10,8)
FINANCIALS (AS REPORTED)

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
NET REVENUE 5.069 5.036 5.139 5.308 20.552 4.987 (1,6)
EBITDA 2.006 1.981 2.102 2.015 8.104 1.915 (4,5)
EBITDA margin (EBITDA / total revenue) % 37,2 36,9 38,3 35,5 37,0 36,0 (1.2p)
Depreciation, amortization and impairment losses (935) (953) (963) (977) (3.828) (980) (4,8)
Profit (loss) from operations = EBIT 1.071 1.028 1.139 1.038 4.276 935 (12,7)
CASH CAPEX 1.005 1.052 1.052 1.105 4.214 1.145 13,9
CASH CONTRIBUTION 1.001 929 1.050 910 3.890 770 (23,1)
GERMANY
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
TOTAL REVENUE (ADJUSTED FOR SPECIAL FACTORS) 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
Profit (loss) from operations = EBIT 1.071 1.028 1.139 1.038 4.276 935 (12,7)
- Depreciation, amortization and impairment losses (935) (953) (963) (977) (3.828) (980) (4,8)
= EBITDA 2.006 1.981 2.102 2.015 8.104 1.915 (4,5)
EBITDA margin % 37,2 36,9 38,3 35,5 37,0 36,0 (1.2p)
- Special factors affecting EBITDA (49) (105) (75) (79) (308) (167) n.a.
= EBITDA (ADJUSTED FOR SPECIAL FACTORS) 2.055 2.086 2.177 2.094 8.412 2.082 1,3
EBITDA margin (adjusted for special factors) % 38,1 38,8 39,7 36,9 38,4 39,1 1.0p
SPECIAL FACTORS
2017 2017 2017 2017 2017 2018
EFFECTS ON EBITDA (49) (105) (75) (79) (308) (167) n.a.
- of which personnel (37) (54) (65) (65) (221) (160) n.a.
- of which other (12) (51) (10) (14) (87) (7) 41,7
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT (49) (105) (75) (79) (308) (167) n.a.
- of which other (12) (51) (10) (14) (87) (7) 41,7
GERMANY
OPERATIONALS
Q1 Q2 Q3 Q4 Q1 Change
Note 2017 2017 2017 2017 2018 %
GERMANY
ACCESS LINES
Fixed network ('000) 1,2 19.648 19.477 19.352 19.239 19.149 (2,5)
retail IP-based ('000) 1 9.801 10.351 11.177 11.996 12.843 31,0
Broadband ('000) 1,3 12.989 13.035 13.105 13.209 13.357 2,8
Fiber ('000) 1,4 4.693 5.033 5.417 5.803 6.232 32,8
TV (incl. IPTV, SAT) ('000) 1 2.955 3.024 3.089 3.139 3.193 8,1
ULLs ('000) 1 6.952 6.723 6.417 6.138 5.846 (15,9)
Wholesale Broadband Access Lines ('000) 1 4.702 4.980 5.315 5.639 5.993 27,5
Fiber ('000) 2.887 3.169 3.485 3.783 4.135 43,2
MOBILE CUSTOMERS
Total ('000) 42.114 42.011 42.534 43.125 42.730 1,5
- contract ('000) 25.270 25.084 25.452 25.887 25.102 (0,7)
- prepaid ('000) 16.844 16.927 17.082 17.238 17.628 4,7
GERMANY
MOBILE COMMUNICATIONS KPIS
Note 2017 2017 2017 2017 2017 2018 %
AVERAGE MONTHLY CHURN (%) 1,7 1,9 1,3 1,5 1,6 1,6 (0,1p)
- contract (%) 1,9 2,3 1,1 1,5 1,7 1,9 0,0
ARPU (€) 13 13 14 13 13 11 (15,4)
- contract (€) 20 20 21 20 20 18 (10,0)
- prepaid (€) 3 3 3 3 3 2 (33,3)
MOU PER CUSTOMER (min) 89 89 89 91 89 91 2,2p
- contract (min) 138 138 138 140 138 141 2,2
1 Figures do not add up

2 Due to new products by business we see a change in the beginning balance of about +62k accesses
3 Due to new products by business we see a change in the beginning balance of about +53k accesses
4 Sum of all FTTx accesses (e.g. FTTC/VDSL, Vectoring and FTTH).
GERMANY
REVENUE SPLIT - PRODUCTS
2017 2017 2017 2017 2017 2018
GERMANY 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
FIXED NETWORK CORE BUSINESS 2.392 2.385 2.379 2.419 9.575 2.371 (0,9)
of which Fixed Revenues 1.734 1.722 1.716 1.706 6.879 1.756 1,3
Voice only revenues 420 409 402 388 1.620 373 (11,2)
Broadband revenues 1 986 979 972 972 3.909 1.033 4,8
TV revenues 1 328 334 342 346 1.350 350 6,7
of which Variable Revenues 198 191 186 179 755 176 (11,1)
of which Revenues from add-on options 46 46 48 49 189 45 (2,2)
thereof revenues from voice centric options 14 13 13 12 52 11 (21,4)
thereof revenues from broadband centric options 16 15 15 14 60 14 (12,5)
thereof revenues from TV centric options 17 17 17 17 68 17 0,0
of which Revenues from devices (fixed line) 127 131 132 129 519 141 11,0
thereof revenues from sale of devices and accessories (Fixed line) 32 33 31 25 120 33 3,1
MOBILE COMMUNICATIONS 1.972 1.950 2.053 2.168 8.142 1.902 (3,5)
of which Service Revenues 1.635 1.669 1.713 1.695 6.713 1.480 (9,5)
Service Revenues EXCL. IFRS 15 1.687 3,2
WHOLESALE SERVICES FIXED NETWORK 848 852 874 878 3.451 862 1,7
of which access full ULL 231 222 214 204 871 192 (16,9)
of which wholesale broadband access lines 257 267 289 295 1.107 328 27,6
VALUE-ADDED SERVICES 49 47 47 48 192 46 (6,1)
OTHERS 136 136 136 163 571 145 6,6
REVENUE SPLIT - SEGMENTS

2017 2017 2017 2017 2017 2018
GERMANY 5.397 5.371 5.488 5.676 21.931 5.325 (1,3)
Consumer 2.918 2.878 2.964 3.038 11.797 2.813 (3,6)
Business customers 2 1.465 1.473 1.486 1.587 6.017 1.491 1,8
Wholesale 926 928 947 945 3.747 932 0,6
Others 2 88 92 91 106 370 90 2,3
1 Due to new products by business we see a change in the revenues of about +47 Mio.€
2 Due to reorganisation partial shift from „Others“ to „Business customers” from Q3/2017.
GERMANY
Magenta Mobil
Magenta Mobil PLANS IN € S M L L Plus
Monthly charge (without handset) 34.95 44.95 54.95 79.95
Monthly charge (with entry level handset) 39.95
Monthly charge (with handset) 44.95 54.95 64.95 ----
Monthly charge (with top handset) 54.95 64.95 74.95 99.95
Voice and SMS 1 flat flat flat flat
Data flat flat flat flat
- Data Speed (download) max max max max
- Data Speed (upload) max max max max
- Data Volume until speed step down 2 GB 4 GB 6 GB 10 GB
- Data Network 3G/LTE 3G/LTE 3G/LTE 3G/LTE
StreamOn Music StreamOn Music &
Streaming ---- StreamOn Music
& Video Video
VoIP free free free free
Tethering free free free free
MMS all net 0.39 0.39 0.39 0.39
International Calls (minutes) ---- ---- ---- 100 ²
International SMS (pieces) ---- ---- ---- 100 ²
HotSpot Flatrate free free free free
MultiSim ---- ---- ---- free 3
Roaming Voice, SMS and Data free (EU) free (EU) free (EU) free (EU)
Fixed line number ---- ---- ---- free
Activation fee 39.95 39.95 39.95 39.95
Duration of contract 24 months 24 months 24 months 24 months
1 voice and sms within all german networks (mobile and fixed network).
2 Country Group 1 and 2
3 up to two MultiSIM bookable.
GERMANY
Magenta Mobil Premium
Premium PLANS IN € L PREMIUM L Plus PREMIUM XL PREMIUM
Monthly charge (with top handset) 84.95 109.95 199.95
handset upgrade period 12 months 12 months 12 months
Voice and SMS 1 flat flat flat
Data flat flat flat
- Data Speed (download) max max max
- Data Speed (upload) max max max
- Data Volume until speed step down 6 GB 10 GB flat
- Data Network 3G/LTE 3G/LTE 3G/LTE
StreamOn Music &
Streaming StreamOn Music & Video n.r.
Video
VoIP free free free
Tethering free free free
MMS all net 0.39 0.39 0.39
2 4
International Calls (minutes) ---- 100 flat
2
International SMS (pieces) ---- 100 flat4
HotSpot Flatrate free free free
MultiSim ---- free3 free3
4
Roaming Voice, SMS and Data free (EU) free (EU) free (EU Plus )
Fixed line number ---- free free
Activation fee 39.95 39.95 39.95
Duration of contract 24 months 24 months 24 months
4 EU, switzerland, US, Canada, Turkey
GERMANY
Mobile Options
StreamOn StreamOn Music StreamOn Music & Video S StreamOn Music & Video Max
Monthly charge 0 0 0
Music &Video
Music &Video Streaming zero-rating
Music Streaming zero-rating for Streaming zero-
Description for connected partners, mobile
connected partners rating for
optimated
connected
Only
MagentaEINS:
Starting with MagentaMobil M Starting with MagentaMobil L Starting with
Booking restrictions /MagentaMobil S Young / /MagentaMobil M Young / MagentaMobil M
FamilyCard M FamilyCard L /MagentaMobil
M Young /
FamilyCard M
INTERNATIONAL OPTIONS IN € INTERNATIONAL 100 or 400 ERNATIONAL SMS 100
Monthly charge 9.95 or 29.95 9.95

100 SMS to
Description 100 or 400 min. mobile and fixed Network to Country Code 1 + 2 Country Code 1
+2
ADDITIONAL DATA VOLUME OPTIONS IN € Data S Data M Data L

Monthly charge 9.95 14.95 24.95
Additional Data Volume (per month) 1 GB 2 GB 5 GB
OHTER OPTIONS IN € MULTISIM DayFlat unlimited

Monthly charge 4.95/9.90 4.95
Description one/two MultiSIM bookable. Data Full Flat for 24h
ADDITIONAL DATA PACKAGES IN € MultiData S MultiData M MultiData L

Monthly charge 10.00 15.00 25.00
Additional Data Volume (per month) 1 GB 2 GB 5 GB
up to two
Description up to two MultiSIM bookable up to two MultiSIM bookable MultiSIM
bookable
GERMANY
DOUBLE PLAY VIA WIRELESS (CALL & SURF VIA FUNK)
DOUBLE PLAY VIA WIRELESS 1 in € S M L
2 3 4
Monthly Charge 34.95 39.95 49.955
Data Speed (Mbit/s) 16 Mbit/s 50 Mbit/s 100 Mbit/s
Data Volume until Speed Step Down (SSD) 10 GB 15 GB 30 GB
Voice minutes € Cent/Minute
fixed net national flat
international from 2.9
fixed to mobile 19.0
Options
Speed On €14.95 per 10GB €14.95 per 15GB €14.95 per 30GB
fixed to mobile 12.9 cents/minute, minimum charge €4 per month
mobile flat to Telekom Mobile €14.95 per month
CountryFlat 1 €3.95 per month
Mail & Cloud M €4.95 per month
Security Package M €3.95 per month
1 Standard-PSTN; Universal-PSTN + €4
2 without terminal equipment. Monthly rent for Router €4.95
3 Promotional price. Regular price €39.95
For general conditions and further details, please see www.telekom.de. All prices in € including VAT.
GERMANY
MAGENTA ZUHAUSE
MAGENTA ZUHAUSE IN € ZUHAUSE XS1 ZUHAUSE S1 ZUHAUSE M1 ZUHAUSE L1 ZUHAUSE GIGA1
29.95 34.952 39.952 44.952 119.95
50 Mbit/s
16 Mbit/s bandwidth 16 Mbit/s bandwidth, flat rate Internet 100 Mbit/s bandwidth 5 flat rate Internet 1.000 Mbit/s bandwidth flat rate Internet usage
bandwidth flat
flat rate Internet usage usage flat rate voice usage usage flat rate voice usage all net flat rate voice usage
rate Internet
ENTERTAIN
START TV --- 2.00 ---
ENTERTAIN TV --- 10.00 3,4 ---
ENTERTAIN COMFORT SAT --- 10.00 3,4 ---
ENTERTAIN TV PLUS --- 15.00 3,4 included
2
ENTERTAIN SAT --- 5.00 --- ---
CITY, DLD CENT/MINUTE
Peak/Off peak 2.9 ct included
international from 2.9 ct
fixed to mobile 19.0 ct included
CALLING PLANS
fixed to mobile 12.9 ct/minute, 4.00 monthly minimum charge --
fixed to T-Mobile flatrate 14.95 ---
fixed to mobile flatrate 19.95 ---
CountryFlat 1 3.94
CountryFlat 2 14.95
Set-up 69.95 (non-recurring charge)
1 IP-Access incl. 2 voice channels and 3 telephone no.

2 Promotional price for new broadband customers: -€15.00/-€20.00/-€25.00 for the first 6 months (ZUHAUSE S/M/L); -€5.00 for the first 6 months in combination with Entertain Sat
3 Additional (footnote 2) promotional price for new broadband customers: -€5.00 for the first 24 months (ZUHAUSE S) / ongoing (ZUHAUSE M&L)
4 Promotional price for upgraders from Double Play tariffs: -€5.00 for the first 24 months
5 SPEED OPTION XL / XXL: Also available with 200 / 500 Mbit for +€5.00 / +€25.00
All prices in € including VAT; excl. terminal equipment; excl. building connection fee
All prices are charged on a monthly basis if not identified seperately (usage prices excluded)
For general conditions and further details, please see www.telekom.de
GERMANY
MAGENTA ZUHAUSE HYBRID
MAGENTA ZUHAUSE HYBRID IN € ZUHAUSE S1 HYBRID ZUHAUSE M1 HYBRID ZUHAUSE L1 HYBRID
34.952 39.952 44.952
100 Mbit/s bandwidth +
16 Mbit/s bandwidth + Hybrid LTE-Boost (up 3
50 Mbit/s bandwidth + Hybrid LTE-Boost (up to 50 Hybrid LTE-Boost (up to 100
to 16 Mbit/s), flat rate Internet usage flat rate
Mbit/s), flat rate Internet usage flat rate voice usage Mbit/s), flat rate Internet
voice usage
usage flat rate voice usage
ENTERTAIN
START TV 2.00
ENTERTAIN TV 10.00 4,5
ENTERTAIN TV PLUS 15.00 4,5
CITY, DLD CENT/MINUTE
national 0 ct
international from 2.9 ct
fixed to mobile 19.0 ct
CALLING PLANS
fixed to mobile 12.9 ct/minute, 4.00 monthly minimum charge
fixed to T-Mobile flatrate 14.95
fixed to mobile flatrate 19.95
CountryFlat 1 3.94
CountryFlat 2 14.95
1 IP-Access incl. 2 voice channels and 3 telephone no.
2 Promotional price for new broadband customers: - €15.00/-€20.00/-€25.00 for the first 6 months (ZUHAUSE S/M/L Hybrid)
3 16 Mbit/s DSL-bandwidth in non-VDSL-areas (ZUHAUSE M Hybrid (2))
4 Additional (footnote 2) promotional price for new broadband customers: - €5.00 for the first 24 months (ZUHAUSE S Hybrid) / ongoing (ZUHAUSE M&L Hybrid)
5 Promotional price for upgraders from Double Play tariffs: - €5.00 for the first 24 months
All prices excl. terminal equipment; Speedport Hybrid required (rental price per month: 9.95 €, purchase price 399.99€); excl. building connection fee
All prices in € including VAT; excl. terminal equipment.
All prices are charged on a monthly basis if not identified seperately (usage prices excluded)
For general conditions and further details, please see www.telekom.de
GERMANY
SINGLE PLAY
SINGLE PLAY IN € CALL START1 CALL BASIC
1,2
CALL COMFORT
1
20.95 20.95 30.94

Standard,
Standard, Standard, voice usage per minute, up to
voice flat rate within
voice usage per minute 120 minutes included within Germany
Germany
CITY, CDL € CENT/MINUTE
Peak/Off peak 2.9 flat
international from 2.9
fixed to mobile 19.0
CALLING PLANS
CountryFlat 1 € 3.94 per month
fixed to mobile 12.9 cents/minute, minimum charge €4 per month
fixed to T-Mobile flatrate €14.95 per month
fixed to mobile flatrate €19.95 per month
1 Standard; Universal + €8
2 Universal up to 240 Min included
For general conditions and further details, please see www.telekom.de.
All prices in € including VAT.
GERMANY
MAGENTA EINS
MAGENTA EINS1 IN € MagentaEINS S MagentaEINS M MagentaEINS L
Monthly charge 41.90 ² 61.85 ² 76.85 ²
Flatrate from fixed line to all
Flatrate from fixed line to all national networks , Flatrate from fixed line to all national networks , including calls national networks3, including
3 3
Fixed Line including calls to all mobile networks. Internet Flat to all mobile networks. Internet Flat up to 50 Mbit/s download calls to all mobile networks.
up to 16 Mbit/s download speed. speed. Internet Flat up to 100 Mbit/s
download speed.
Unlimited SMS and calls from

mobile into all national
Unlimited SMS and calls from mobile into all Unlimited SMS and calls from mobile into all national
networks in Germany3. 6 GB
national networks in Germany . 2 GB Internet flat networks in Germany3. 4 GB Internet flat with LTE Max until
3
Mobile Internet flat with LTE Max until
with LTE Max until speed step down. Hotspot Flat speed step down. Hotspot Flat and abroad option All Inclusive
speed step down. Hotspot Flat
and abroad option All Inclusive included. included.
and abroad option All Inclusive
included.
EntertainTV Plus incl. UHD
EntertainTV incl. UHD Receiver 500 GB Memory, including Receiver 500 GB Memory,
TV
more than 20 channels in HD quality. including more than 45
channels in HD quality.
Music &Video Streaming zero-
MagentaEINS StreamOn Music &Video Streaming zero-rating for connected partners,
rating for connected partners,
Music&Video Max high resolution
high resolution
Set-up Service fee of 69,95€ for new fixed line & 39,95€ for new mobile contract.
Duration of contract 24 months for new costumers; duration depends otherwise on fixed network and/or on mobile network contract conditions
Handsets, options, calling
Available based on comparable mobile and fixed line stand-alone offers.
plans, etc.
1 Booking Prerequisites: only available as IP-Tariff; Mobile tariff with monthly charge≥ €29.95; Identical adress for fixed and mobile contracts.
2 Promotional price in the first 6 months for new customers; Price after 6 months€56.90 (S), €81.85 (M), €101.85 (L), Regular price € 59.90 (S), €84.85 (M) and €104,85 (L). Prices might vary in online channel due to
3 Price for international calls depend of fixed-network and/or mobile-network contract. Otherwise from 2.9 cent/min. (fixed line) and from 69 cent/min. (mobile)
More MagentaEINS convergent Bundles including existing customers' tariffs available.
For general terms & conditions and further details, please visit: www.telekom.de. All prices in€ and include VAT.
FIXED NETWORK
OVERVIEW DOM. INTERCONNECTION TARIFFS (EXCL. VAT)
OFF-PEAK
PEAK PEAK OFF-PEAK
TERMINATION FEES IN CENT/MIN. 1 (18:00-9:00), 1
(9:00-18:00), OLD (9:00-18:00), NEW (18:00-9:00), NEW
OLD
Local 0.24 0.10 0.24 0.10
Single transit 0.26 entfallen 0.26 entfallen
Double transit national 0.26 0.10 0.26 0.10
OFF-PEAK
PEAK PEAK OFF-PEAK
ORIGINATION FEES IN CENT/MIN. 1 (18:00-9:00), 1
(9:00-18:00), OLD (9:00-18:00), NEW (18:00-9:00), NEW 1 Prices are valid from Jan. 01, 2017 to Dec. 31, 2018.
OLD
2 Depending on complexity – valid to Sep. 30, 2016.
Local 0.24 0.23 0.24 0.23
3 Depending on complexity - valid to Sep. 30, 2018.
Single transit 0.35 entfallen 0.35 entfallen 4 Twisted pair copper access line valid to Jun. 30, 2016.
Double transit national 0.41 0.23 0.41 0.23 5 Twisted pair copper access line valid to Jun. 30, 2019.
6 valid to Jun. 30, 2014.
FULLY UNBUNDLED (“ULL“) OLD NEW
7 valid from Jul. 01, 2014.
2
One time fee 29.78 27.11 3 8 Since Dec. 01, 2010 these prices are ex post.
Monthly fee 10.19 4 10.02 5 9 No price changes since Jul. 01, 2011 .
PARTIALLY UNBUNDLED (“LINE 10 Monthly fee for VDSL Vectoring (over 50 to 100
OLD NEW Mbit/s) : 29.52 €. Launch Aug. 01, 2014.
SHARING“)
11 12
One time fee 34.13 34.23 11 Depending on complexity – valid to Jun. 30, 2014.
Monthly fee 6 7 12 Depending on complexity – valid from Jul. 01, 2014.
1.68 1.78
IP-BSA ADSL SHARED (CLASSIC) OLD NEW

8,9
One time fee --- 44.87
8,9
Monthly fee --- 8.12
IP-BSA ADSL STAND ALONE (CLASSIC) OLD NEW
8,9
8,9
IP-BSA VDSL (until 50 Mbit/s) 10 STAND
OLD (IN €) NEW (IN €)
ALONE (CLASSIC)
8,9
8,9
NOTES
CONTENT DT

UNITED STATES
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
NET REVENUE 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
EBITDA 1 2.386 2.640 2.288 2.003 9.316 2.332 (2,3)
EBITDA margin (EBITDA / total revenues) % 26,6 28,6 27,0 22,1 26,1 27,6 1,0p
Depreciation, amortization and impairment losses (1.387) (1.308) (1.130) (1.194) (5.019) (1.223) 11,8
Profit (loss) from operations = EBIT 999 1.332 1.157 809 4.297 1.109 11,0
CASH CAPEX 2 1.409 1.216 1.225 774 4.624 1.084 (23,1)
CASH CONTRIBUTION 2 977 1.423 1.063 1.229 4.692 1.248 27,7

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
NET REVENUE 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
EBITDA 2.390 2.635 3.934 1.989 10.949 2.360 (1,3)
EBITDA margin (EBITDA / total revenue) % 26,6 28,5 46,5 22,0 30,6 27,9 1,3p
Depreciation, amortization and impairment losses (1.387) (1.308) (1.130) (1.194) (5.019) (1.223) 11,8
Profit (loss) from operations = EBIT 1.003 1.328 2.804 795 5.930 1.137 13,4
CASH CAPEX 1.442 8.463 1.243 784 11.932 1.143 (20,7)
CASH CONTRIBUTION 948 (5.828) 2.691 1.206 (983) 1.217 28,4
1 Excluding special factors affecting EBITDA of EUR 4mn in Q1/17, EUR (4mn) in Q2/17, EUR 1,647mn (mainly related to reversal of impairment) in Q3/17 , EUR (14mn) in Q4/17 and EUR 28mn in Q1/18
2 Adjusted by excluding spectrum purchases of EUR 33mn in Q1/17, EUR 7.247mn in Q2/17, EUR 18mn in Q3/17, EUR 10mn in Q4/17 and EUR 59 mn in Q1/18
UNITED STATES
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
Profit (loss) from operations = EBIT 1.003 1.328 2.804 795 5.930 1.137 13,4
- Depreciation, amortization and impairment losses (1.387) (1.308) (1.130) (1.194) (5.019) (1.223) 11,8
= EBITDA 2.390 2.635 3.934 1.989 10.949 2.360 (1,3)
EBITDA margin % 26,6 28,5 46,5 22,0 30,6 27,9 1,3p
- Special factors affecting EBITDA 4 (4) 1.647 (14) 1.633 28 n.a.
= EBITDA ADJUSTED FOR SPECIAL FACTORS 1 2.386 2.640 2.288 2.003 9.316 2.332 (2,3)
EBITDA margin (adjusted for special factors) % 26,6 28,6 27,0 22,1 26,1 27,6 1,0p
SPECIAL FACTORS
Q1 Q2 Q3 Q4 FY Q1
2017 2017 2017 2017 2017 2018
Note millions of € millions of € millions of € millions of € millions of € millions of €
EFFECTS ON EBITDA 4 (4) 1.647 (14) 1.633 28
- of which personnel (1) (4) 0 (2) (7) 2
- of which other 5 0 1.647 (12) 1.640 (30)
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT 4 (4) 1.647 (14) 1.633 28
- of which personnel (1) (4) 0 (2) (7) 2
- of which other 5 0 1.647 (12) 1.640 (30)
1 Excluding special factors affecting EBITDA of EUR 4mn in Q1/17, EUR (4mn) in Q2/17, EUR 1,647mn (mainly related to reversal of impairment) in Q3/17, EUR (14mn) in Q4/17 and EUR 28 mn in Q1/18
UNITED STATES 4
OPERATIONAL
Note 2017 2017 2017 2017 2017 2018 %
CUSTOMERS (END OF PERIOD) ('000) 72.597 69.562 70.731 72.585 72.585 74.040 2,0
Branded postpaid ('000) 4 35.341 36.158 36.975 38.047 38.047 39.065 10,5
Branded prepay ('000) 4 20.199 20.293 20.519 20.668 20.668 20.876 3,4
- BRANDED ('000) 4 55.540 56.451 57.494 58.715 58.715 59.941 7,9
- WHOLESALE ('000) 4 17.057 13.111 13.237 13.870 13.870 14.099 (17,3)
NET ADDS ('000) 1.142 1.333 1.329 1.854 5.658 1.433 25,5
Branded postpaid ('000) 914 817 817 1.072 3.620 1.005 10,0
Branded prepay ('000) 386 94 226 149 855 199 (48,4)
- BRANDED ('000) 1.300 911 1.043 1.221 4.475 1.204 (7,4)
- WHOLESALE ('000) (158) 422 286 633 1.183 229 n.a.
AVERAGE MONTHLY CHURN
- Branded postpaid (%) 1,4 1,3 1,4 1,4 1,4 1,3 (0,1p)
- Branded prepay (%) 4,0 3,9 4,3 4,0 4,0 3,9 (0,1p)
TOTAL REVENUES (€ million) 8.982 9.236 8.466 9.052 35.736 8.455 (5,9)
Service revenue (€ million) 1 6.783 6.665 6.336 6.426 26.210 6.226 (8,2)
EBITDA (ADJUSTED FOR SPECIAL FACTORS) (€ million) 2 2.386 2.640 2.288 2.003 9.316 2.332 (2,3)
(EBITDA / total revenue) (%) 26,6 28,6 27,0 22,1 26,1 27,6 1,0p
(EBITDA / service revenue) (%) 35,2 39,6 36,1 31,2 35,5 37,5 2,3p
ARPU
- Branded postpaid (€) 42 40 37 37 39 35 (16,7)
- Branded prepay (€) 36 35 33 32 34 31 (13,9)
CASH CAPEX (€ million) 1.442 8.463 1.243 784 11.932 1.143 (20,7)
CASH CAPEX (ADJUSTED FOR SPECIAL FACTORS) (€ million) 3 1.409 1.216 1.225 774 4.624 1.084 (23,1)
CASH CONTRIBUTION (ADJUSTED FOR SPECIAL FACTORS) (€ million) 3 977 1.423 1.063 1.229 4.692 1.248 27,7
Note: T-Mobile's historical metrics have changed to conform with the current branded customer presentation. Branded customer metrics revenues exclude machine-to-machine, MVNO, third party roaming and
third party one-time fees. Certain historical customer numbers may not tie to historical reports due to rounding.
1 Includes revenues from providing recurring wireless, customer roaming and handset insurance services.
2 Excluding special factors affecting EBITDA of EUR 4mn in Q1/17, EUR (4mn) in Q2/17, EUR 1,647mn (mainly related to reversal of impairment) in Q3/17, EUR (14mn) in Q4/17 and EUR 28 mn in Q1/18
3 Adjusted by excluding spectrum purchases of EUR 33mn in Q1/17, EUR 7.247mn in Q2/17, EUR 18mn in Q3/17, EUR 10mn in Q4/17 and EUR 59 mn in Q1/18
4 T-Mobile US believes current and future regulatory changes have made the Lifeline program offered by T-Mobile US' wholesale partners uneconomical. T-Mobile US will continue to
support its wholesale partners offering the Lifeline program, but has excluded the Lifeline customers from the reported wholesale subscriber base resulting in a removal of 160 thousand and
4,368 thousand reported wholesale customers as of the beginning of the third quarter of 2017 and the second quarter of 2017, respectively. No further Lifeline adjustments are expected in future periods.
For plan details see:
https://www.t-mobile.com/cell-phone-plans
https://prepaid-phones.t-mobile.com/prepaid-plans
https://business.t-mobile.com/t-mobile-one-business
https://www.metropcs.com/shop/plans
UNITED STATES 4
OPERATIONAL IN US-$
Note 2017 2017 2017 2017 2017 2018 %
CUSTOMERS (END OF PERIOD) ('000) 72.597 69.562 70.731 72.585 72.585 74.040 2,0
Branded postpaid ('000) 4 35.341 36.158 36.975 38.047 38.047 39.065 10,5
Branded prepay ('000) 4 20.199 20.293 20.519 20.668 20.668 20.876 3,4
- BRANDED ('000) 4 55.540 56.451 57.494 58.715 58.715 59.941 7,9
- WHOLESALE ('000) 4 17.057 13.111 13.237 13.870 13.870 14.099 (17,3)
NET ADDS ('000) 1.142 1.333 1.329 1.854 5.658 1.433 25,5
Branded postpaid ('000) 914 817 817 1.072 3.620 1.005 10,0
Branded prepay ('000) 386 94 226 149 855 199 (48,4)
- BRANDED ('000) 1.300 911 1.043 1.221 4.475 1.204 (7,4)
- WHOLESALE ('000) (158) 422 286 633 1.183 229 n.a.
AVERAGE MONTHLY CHURN
- Branded postpaid (%) 1,4 1,3 1,4 1,4 1,4 1,3 (0,1p)
- Branded prepay (%) 4,0 3,9 4,3 4,0 4,0 3,9 (0,1p)
TOTAL REVENUES (USD million) 9.563 10.151 9.939 10.664 40.316 10.394 8,7
Service revenue (USD million) 1 7.221 7.329 7.439 7.570 29.558 7.653 6,0
EBITDA (ADJUSTED FOR SPECIAL FACTORS) (USD million) 2 2.540 2.899 2.680 2.360 10.479 2.866 12,8
(EBITDA / total revenue) (%) 26,6 28,6 27,0 22,1 26,0 27,6 1,0p
(EBITDA / service revenue) (%) 35,2 39,6 36,0 31,2 35,5 37,4 2,2p
BLENDED ARPU
- Branded postpaid (USD) 45 44 44 43 44 43 (4,4)
- Branded prepay (USD) 38 38 38 38 38 38 0,0
CASH CAPEX (USD million) 1.534 9.334 1.452 923 13.243 1.403 (8,5)
CASH CAPEX (ADJUSTED FOR SPECIAL FACTORS) (USD million) 3 1.498 1.330 1.429 913 5.170 1.330 (11,2)
CASH CONTRIBUTION (ADJUSTED FOR SPECIAL FACTORS) (USD million) 3 1.042 1.569 1.251 1.447 5.309 1.536 47,4
Note: T-Mobile's historical metrics have changed to conform with the current branded customer presentation. Branded customer metrics revenues exclude machine-to-machine, MVNO, third party roaming and
third party one-time fees. Certain historical customer numbers may not tie to historical reports due to rounding.
1 Includes revenues from providing recurring wireless, customer roaming and handset insurance services.
2 Excluding special factors affecting EBITDA of USD 5mn in Q1/17, USD (5mn) in Q2/17, USD 1,945mn (mainly related to reversal of impairment) in Q3/17, USD (16mn) in Q4/17 and USD 34 mn in Q1/18
3 Adjusted by excluding spectrum purchases of USD 36mn in Q1/17, USD 8.004mn in Q2/17, USD 22mn in Q3/17, USD 11mn in Q4/17 and USD 73 mn in Q1/18
4 T-Mobile US believes current and future regulatory changes have made the Lifeline program offered by T-Mobile US' wholesale partners uneconomical. T-Mobile US will continue to
support its wholesale partners offering the Lifeline program, but has excluded the Lifeline customers from the reported wholesale subscriber base resulting in a removal of 160 thousand and
4,368 thousand reported wholesale customers as of the beginning of the third quarter of 2017 and the second quarter of 2017, respectively. No further Lifeline adjustments are expected in future periods.
For US-GAAP numbers please visit investor.t-mobile.com to download the corresponding T-Mobile US earnings release.
For plan details see:
https://www.t-mobile.com/cell-phone-plans
https://prepaid-phones.t-mobile.com/prepaid-plans
https://business.t-mobile.com/t-mobile-one-business
https://www.metropcs.com/shop/plans
NOTES
CONTENT DT

EUROPE
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 2.781 2.860 2.945 3.002 11.589 2.811 1,1
NET REVENUE 2.695 2.772 2.848 2.903 11.589 2.727 1,2
EBITDA 1 889 947 1.007 906 3.749 911 2,5
Depreciation, amortization and impairment losses 4 (553) (557) (558) (624) (2.292) (559) (1,1)
Profit (loss) from operations = EBIT 2 336 390 449 282 1.457 352 4,8
CASH CAPEX 3 473 403 395 517 1.787 438 (7,4)
CASH CONTRIBUTION 416 544 613 389 1.962 473 13,7

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 2.781 2.860 2.945 3.002 11.589 2.811 1,1
NET REVENUE 2.695 2.772 2.848 2.903 11.218 2.727 1,2
EBITDA 877 913 959 870 3.619 905 3,2
Depreciation, amortization and impairment losses (553) (557) (558) (1.489) (3.157) (559) (1,1)
Profit (loss) from operations = EBIT 324 357 400 (620) 462 345 6,5
CASH CAPEX 475 403 395 601 1.874 434 (8,6)
CASH CONTRIBUTION 402 510 564 269 1.745 471 17,2
EUROPE
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 2.781 2.860 2.945 3.002 11.589 2.811 1,1
TOTAL REVENUE (ADJUSTED FOR SPECIAL FACTORS) 2.781 2.860 2.945 3.002 11.589 2.811 1,1
Profit (loss) from operations = EBIT 324 357 400 (620) 462 345 6,5
- Depreciation, amortization and impairment losses (553) (557) (558) (1.489) (3.157) (559) (1,1)
= EBITDA 877 913 959 870 3.619 905 3,2
EBITDA margin % 31,5 31,9 32,6 29,0 31,2 32,2 0.7p
- Special factors affecting EBITDA (12) (33) (49) (36) (130) (7) 41,7
= EBITDA (ADJUSTED FOR SPECIAL FACTORS) 889 947 1.007 906 3.749 911 2,5
SPECIAL FACTORS
2017 2017 2017 2017 2017 2018
EFFECTS ON EBITDA (12) (33) (49) (36) (130) (7) 41,7
- of which personnel (11) (13) (38) (30) (92) (5) 54,5
- of which other 0 (21) (10) (6) (37) (1) n.a.
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT (12) (33) (49) (902) (995) (7) 41,7
- of which personnel (11) (13) (38) (30) (92) (5) 54,5
- of which other 0 (21) (10) (871) (902) (1) n.a.
GREECE
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 690 693 740 723 2.846 686 (0,6)
PRODUCT VIEW 1 690 693 740 723 2.846 686 (0,6)
- Fixed network 449 432 445 443 1.769 438 (2,5)
- Mobile communications 241 261 294 280 1.077 248 2,9
SEGMENT VIEW 690 693 740 723 2.846 686 (0,6)
- of which Consumer 389 398 414 408 1.609 393 1,0
- of which Business 133 140 138 149 560 132 (0,8)
EBITDA 2 266 273 303 293 1.135 280 5,2
EBITDA MARGIN (EBITDA / TOTAL REVENUE) % 38,6 39,4 40,9 40,5 39,9 40,8 2.2p
CASH CAPEX (AS REPORTED) 102 123 113 241 580 84 (17,6)
CASH CONTRIBUTION 164 150 190 52 555 196 19,5
1 As of January 1, 2018, fixed and mobile revenues are shown without internal revenues now. Figures of the previous periods were adjusted.
2 Special factors affecting EBITDA: EUR 2mn in Q1/17, EUR 26mn in Q3/17 and EUR -8mn in Q4/17.
GREECE
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
FIXED NETWORK (END OF PERIOD)
Fixed network Access Lines ('000) 2.547 2.539 2.536 2.547 2.547 2.551 0,2
- IP ('000) 759 937 1.046 1.156 1.156 1.301 71,4
Broadband Access Lines Retail ('000) 1 1.653 1.680 1.714 1.757 1.757 1.805 9,2
TV (IPTV, SAT, Cable) ('000) 499 501 515 523 523 526 5,4
ULLs/Wholesale PSTN ('000) 2.108 2.111 2.111 2.117 2.117 2.127 0,9
Wholesale Broadband Access Lines ('000) 56 67 76 86 86 96 71,4
MOBILE COMMUNICATIONS (END OF PERIOD)
Service revenue (€) 214 232 260 236 942 213 (0,5)
Service revenue EXCL. IFRS 15 219 2,3
CUSTOMERS ('000) 7.733 7.737 7.867 7.981 7.981 8.053 4,1
- contract ('000) 2.226 2.224 2.222 2.231 2.231 2.241 0,7
- prepaid ('000) 5.507 5.513 5.645 5.750 5.750 5.813 5,6
NET ADDS ('000) 8 4 130 114 256 72 n.a.
- contract ('000) 8 (2) (2) 9 13 9 12,5
- prepaid ('000) 0 6 132 105 243 63 n.a.
AVERAGE MONTHLY CHURN (%) 1,7 2,2 2,0 2,2 2,0 1,9 0,2p
- contract (%) 1,2 1,3 1,4 1,3 1,3 1,3 0,1p
ARPU € 9 10 11 10 10 9 0,0
- contract € 23 25 28 25 26 22 (4,3)
- prepaid € 4 4 4 4 4 4 0,0
MOU PER CUSTOMER (min) 263 276 280 273 273 258 (1,9)
- contract (min) 421 441 443 434 435 412 (2,1)
1 As of January 1, 2018, the broadband accesses were reclassified. This includes all accesses with an underlying broadband technology, regardless of which service the customer uses. Figures of the previous periods were not
adjusted.
ROMANIA
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 230 236 240 266 972 226 (1,7)
PRODUCT VIEW 230 236 240 266 972 226 (1,7)
- Fixed network 127 133 131 138 528 112 (11,8)
- Mobile communications 104 103 109 128 444 114 9,6
SEGMENT VIEW 230 236 240 266 972 226 (1,7)
- of which Consumer 144 144 141 156 588 146 1,4
EBITDA 1 37 39 43 47 166 33 (10,8)
EBITDA MARGIN (EBITDA / TOTAL REVENUE) % 16,1 16,5 17,9 17,7 17,1 14,6 (1.5p)
CASH CONTRIBUTION (11) 3 6 7 4 (6) (45,5)
1 Special factors affecting EBITDA: EUR 8mn in Q2/17, EUR 5mn in Q3/17 and EUR 6mn in Q4/17.
ROMANIA
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
Fixed network Access Lines ('000) 1.937 1.922 1.894 1.865 1.865 1.823 (5,9)
- IP ('000) 520 562 597 630 630 682 31,2
TV (IPTV, SAT, Cable) ('000) 1.457 1.471 1.473 1.470 1.470 1.464 0,5
ULLs/Wholesale PSTN ('000) 0 0 0 0 0 0 n.a.
Wholesale Broadband Access Lines ('000) 0 0 0 0 0 0 n.a.
Service revenue (€) 78 80 86 92 336 82 5,1
CUSTOMERS ('000) 5.428 5.278 5.231 5.258 5.258 5.236 (3,5)
- contract ('000) 2.024 2.047 2.097 2.148 2.148 2.188 8,1
- prepaid ('000) 3.403 3.231 3.133 3.109 3.109 3.048 (10,4)
NET ADDS ('000) (294) (149) (48) 27 (464) (22) 92,5
- contract ('000) 17 23 50 51 141 40 n.a.
- prepaid ('000) (312) (172) (98) (24) (605) (61) 80,4
- contract (%) 1,8 1,4 1,2 2,4 1,7 2,2 0,4p
ARPU € 5 5 5 6 5 5 0,0
- contract € 8 9 9 10 9 9 12,5
- prepaid € 3 3 3 3 3 3 0,0
MOU PER CUSTOMER (min) 286 293 305 317 300 316 10,5
- contract (min) 402 401 410 413 406 410 2,0
adjusted.
HUNGARY
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 415 454 463 476 1.808 443 6,7
PRODUCT VIEW 415 454 463 476 1.808 443 6,7
- Fixed network 198 222 211 233 865 216 9,1
SEGMENT VIEW 415 454 463 476 1.808 443 6,7
- of which Consumer 239 248 263 265 1.015 263 10,0
- of which Business 143 170 157 176 646 154 7,7
EBITDA 1 109 141 168 127 545 121 11,0
EBITDA MARGIN (EBITDA / TOTAL REVENUE) % 26,3 31,1 36,3 26,7 30,1 27,3 1p
1 Special factors affecting EBITDA: EUR 2mn in Q1/17, EUR 2mn in Q2/17, EUR 2mn in Q3/17, EUR 5mn in Q4/17 and EUR 1mn in Q1/18.
HUNGARY
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
Fixed network Access Lines ('000) 1.630 1.637 1.634 1.632 1.632 1.634 0,2
- IP ('000) 1.587 1.597 1.597 1.598 1.598 1.603 1,0
TV (IPTV, SAT, Cable) ('000) 985 1.006 1.016 1.026 1.026 1.038 5,4
ULLs/Wholesale PSTN ('000) 6 6 4 4 4 4 (33,3)
Wholesale Broadband Access Lines ('000) 24 33 33 32 32 31 29,2
Service revenue (€) 175 180 191 195 742 175 0,0
CUSTOMERS ('000) 5.304 5.390 5.401 5.293 5.293 5.298 (0,1)
- contract ('000) 3.188 3.327 3.382 3.415 3.415 3.434 7,7
- prepaid ('000) 2.116 2.063 2.019 1.878 1.878 1.864 (11,9)
NET ADDS ('000) (28) 86 11 (108) (39) 5 n.a.
- contract ('000) 33 139 55 33 260 19 (42,4)
- prepaid ('000) (61) (53) (45) (140) (299) (14) 77,0
- contract (%) 0,7 0,7 0,7 0,6 0,7 0,8 0,1p
ARPU € 11 11 12 12 12 11 0,0
- contract € 16 16 17 17 17 15 (6,3)
- prepaid € 3 4 3 4 3 3 0,0
- contract (min) 300 307 298 280 296 273 (9,0)
adjusted.
POLAND
FINANCIALS (ADJUSTED FOR SPECIAL FACTORS)1
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 364 378 376 392 1.509 375 3,0
PRODUCT VIEW 364 378 376 392 1.509 375 3,0
- Fixed network 25 25 27 29 105 27 8,0
- Mobile communications 339 352 349 363 1.403 348 2,7
SEGMENT VIEW 364 378 376 392 1.509 375 3,0
EBITDA 2 100 125 88 106 419 96 (4,0)
1 The business of T-Systems Polska Sp. z o.o., which was previously organizationally assigned to the Systems Solutions operating segment, is disclosed under the Europe operating segment as of September 1, 2017. Figures for prior
periods were not adjusted.
POLAND
OPERATIONALS1, 2
Note 2017 2017 2017 2017 2017 2018 %
Fixed network Access Lines ('000) 33 31 29 32 32 27 (18,2)
- IP ('000) 2 1 1 2 2 2 0,0
Broadband Access Lines Retail ('000) 3 20 18 17 15 15 13 (35,0)
TV (IPTV, SAT, Cable) ('000) 0 0 0 0 0 0 n.a.
Service revenue (€) 217 227 224 230 899 223 2,8
CUSTOMERS ('000) 10.229 10.251 10.297 10.454 10.454 10.509 2,7
- contract ('000) 6.696 6.741 6.797 6.921 6.921 6.990 4,4
- prepaid ('000) 3.533 3.510 3.500 3.533 3.533 3.519 (0,4)
NET ADDS ('000) (405) 21 46 156 (180) 56 n.a.
- contract ('000) 84 45 56 124 309 69 (17,9)
- prepaid ('000) (489) (24) (10) 33 (490) (14) 97,1
- contract (%) 1,3 1,1 1,0 1,0 1,1 1,0 (0,3p)
ARPU € 7 7 7 7 7 7 0,0
- contract € 10 10 9 10 10 9 (10,0)
- prepaid € 2 3 3 3 3 3 50,0
- contract (min) 340 330 340 356 342 344 1,2
1 In Q1/17 the number of prepaid customers has been influenced by the Prepaid Registration which ended in January 2017.
2 From Q1/17 reporting has been amended to cover additional local GTS accesses.
adjusted.
CZECH REPUBLIC
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 237 248 255 271 1.011 254 7,2
PRODUCT VIEW 237 248 255 271 1.011 254 7,2
- Fixed network 54 59 61 68 241 57 5,6
SEGMENT VIEW 237 248 255 271 1.011 254 7,2
EBITDA 1 100 100 101 105 406 111 11,0
CASH CAPEX (AS REPORTED) 37 28 25 32 121 42 13,5
CZECH REPUBLIC
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
Fixed network Access Lines ('000) 143 146 153 197 197 220 53,8
- IP ('000) 130 133 141 185 185 209 60,8
Broadband Access Lines Retail ('000) 1, 2 133 133 133 166 166 179 34,6
TV (IPTV, SAT, Cable) ('000) 15 19 25 37 37 47 n.a.
Service revenue (€) 169 177 183 185 715 197 16,6
CUSTOMERS ('000) 6.097 6.155 6.176 6.176 6.176 6.156 1,0
- contract ('000) 3.736 3.790 3.819 3.854 3.854 3.885 4,0
- prepaid ('000) 2.361 2.365 2.358 2.323 2.323 2.272 (3,8)
NET ADDS ('000) 48 58 21 0 128 (20) n.a.
- contract ('000) 49 55 29 35 167 31 (36,7)
- prepaid ('000) (1) 4 (8) (35) (39) (51) n.a.
- contract (%) 0,5 0,5 0,6 0,5 0,5 0,6 0,1p
ARPU € 9 10 10 10 10 10 11,1
- contract € 13 13 14 14 13 13 0,0
- prepaid € 3 4 4 4 4 4 33,3
- contract (min) 230 230 221 231 228 215 (6,5)
1 The Q2/17 and Q3/17 numbers have been influenced by technical issues which have been resolved in Q4/17.
adjusted.
CROATIA
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 224 231 259 241 955 222 (0,9)
PRODUCT VIEW 224 231 259 241 955 222 (0,9)
- Fixed network 133 134 144 141 554 129 (3,0)
SEGMENT VIEW 224 231 259 241 955 222 (0,9)
- of which Consumer 120 124 125 123 493 118 (1,7)
EBITDA 1 84 96 108 98 386 85 1,2
CASH CONTRIBUTION 50 48 58 57 213 38 (24,0)
CROATIA
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
Fixed network Access Lines ('000) 992 986 974 967 967 959 (3,3)
- IP ('000) 991 985 974 967 967 959 (3,2)
Broadband Access Lines Retail ('000) 1 653 655 654 652 652 702 7,5
TV (IPTV, SAT, Cable) ('000) 408 411 413 417 417 415 1,7
Wholesale Broadband Access Lines ('000) 141 142 136 131 131 130 (7,8)
Service revenue (€) 69 75 91 71 306 62 (10,1)
CUSTOMERS ('000) 2.210 2.237 2.297 2.244 2.244 2.229 0,9
- contract ('000) 1.165 1.206 1.222 1.260 1.260 1.271 9,1
- prepaid ('000) 1.045 1.030 1.075 985 985 958 (8,3)
NET ADDS ('000) (24) 27 60 (52) 10 (15) 37,5
- contract ('000) 6 41 16 38 101 11 83,3
- prepaid ('000) (30) (15) 44 (90) (91) (26) 13,3
- contract (%) 1,2 1,0 0,9 0,9 1,0 1,1 (0,1p)
ARPU € 10 11 13 11 11 9 (10,0)
- contract € 15 16 20 15 16 12 (20,0)
- prepaid € 5 6 6 6 6 6 20,0
- contract (min) 270 282 282 270 276 268 (0,7)
adjusted.
SLOVAKIA
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 183 185 186 194 748 181 (1,1)
PRODUCT VIEW 183 185 186 194 748 181 (1,1)
- Fixed network 90 94 93 101 379 92 2,2
- Mobile communications 93 92 93 92 369 88 (5,4)
SEGMENT VIEW 183 185 186 194 748 181 (1,1)
EBITDA 1 77 81 86 71 315 80 3,9
1 Special factors affecting EBITDA: EUR 18mn in Q2/17 and EUR 1mn in Q4/17.
SLOVAKIA
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
- IP ('000) 854 855 855 858 858 860 0,7
Broadband Access Lines Retail ('000) 2 523 532 541 552 552 570 9,0
TV (IPTV, SAT, Cable) ('000) 564 574 581 592 592 600 6,4
Wholesale Broadband Access Lines ('000) 126 123 121 117 117 111 (11,9)
Service revenue (€) 83 82 85 84 334 71 (14,5)
CUSTOMERS ('000) 2.230 2.235 2.245 2.243 2.243 2.282 2,3
- contract ('000) 1.398 1.410 1.428 1.445 1.445 1.453 3,9
- prepaid ('000) 832 825 817 799 799 829 (0,4)
NET ADDS ('000) 5 5 10 (2) 18 39 n.a.
- contract ('000) (80) 12 18 16 (33) 9 n.a.
- prepaid ('000) 85 (7) (8) (18) 52 31 (63,5)
- contract (%) 2,8 0,7 0,7 0,9 1,3 0,9 (1,9p)
ARPU € 12 12 13 13 12 11 (8,3)
- contract € 17 18 18 18 18 15 (11,8)
- prepaid € 3 3 3 3 3 3 0,0
MOU PER CUSTOMER (min) 1 178 179 171 139 167 179 0,6
- contract (min) 243 251 240 203 234 246 1,2
1 The Q1/17 numbers are retrospectively adjusted due to technical problems.

adjusted.
AUSTRIA
2017 2017 2017 2017 2017 2018
Note € € € € € € %
TOTAL REVENUE 228 215 222 234 900 218 (4,4)
EBITDA 89 69 73 35 266 76 (14,6)
CASH CONTRIBUTION 44 39 39 (13) 109 22 (50,0)
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
Service revenue (€) 200 185 196 195 777 168 (16,0)
Service revenue EXCL. IFRS 15 189 (5,5)
CUSTOMERS ('000) 4.713 4.984 5.201 5.702 5.702 6.071 28,8
- contract ('000) 3.195 3.240 3.271 3.308 3.308 3.314 3,7
- prepaid ('000) 1.518 1.744 1.930 2.394 2.394 2.757 81,6
NET ADDS ('000) 102 271 217 501 1.092 369 n.a.
- contract ('000) 2 46 30 37 115 6 n.a.
- prepaid ('000) 100 226 187 464 976 363 n.a.
- contract (%) 2,7 2,5 3,0 2,7 2,7 2,7 0,0p
ARPU € 14 13 13 12 13 10 (28,6)
- contract € 20 18 19 18 19 16 (20,0)
- prepaid € 3 3 3 2 3 2 (33,3)
- contract (min) 205 199 190 199 198 197 (3,9)
NOTES
CONTENT DT

SYSTEMS SOLUTIONS
1
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 1.704 1.688 1.707 1.819 6.918 1.665 (2,3)
International Revenue 482 477 455 475 1.889 437 (9,3)
NET REVENUE 1.369 1.349 1.352 1.435 5.504 1.332 (2,7)
EBITDA 96 136 131 147 509 57 (40,6)
Depreciation, amortization and impairment losses (98) (95) (93) (102) (387) (95) 3,1
Profit (loss) from operations = EBIT (2) 41 38 45 121 (38) n.a.
EBIT MARGIN % (0,1) 2,4 2,2 2,5 1,7 (2,3) (2,2p)
CASH CAPEX 86 91 87 120 383 83 (3,5)
CASH CONTRIBUTION 10 45 44 27 126 (26) n.a.
ORDER ENTRY 1.274 1.295 1.366 1.305 5.241 1.506 18,2

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 1.704 1.688 1.707 1.819 6.918 1.665 (2,3)
NET REVENUE 1.369 1.349 1.352 1.435 5.504 1.332 (2,7)
EBITDA 61 97 56 66 280 19 (68,9)
Depreciation, amortization and impairment losses 2 (98) (97) (1.338) (103) (1.636) (95) 3,1
Profit (loss) from operations = EBIT 2 (37) 0 (1.282) (37) (1.356) (76) n.a.
CASH CAPEX 86 91 87 120 383 83 (3,5)
CASH CONTRIBUTION (25) 6 (31) (54) (103) (64) n.a.
1 The business of T-Systems Polska Sp. z o.o., which was previously organizationally assigned to the Systems Solutions operating segment, is disclosed under the Europe operating segment as of September 1, 2017. Figures for prior
periods were not adjusted.
SYSTEMS SOLUTIONS
1
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 1.704 1.688 1.707 1.819 6.918 1.665 (2,3)
Profit (loss) from operations = EBIT 2 (37) 0 (1.282) (37) (1.356) (76) n.a.
- Depreciation, amortization and impairment losses 2 (98) (97) (1.338) (103) (1.636) (95) 3,1
= EBITDA 61 97 56 66 280 19 (68,9)
EBITDA margin % 3,6 5,7 3,3 3,6 4,0 1,1 (2.5p)
- Special factors affecting EBITDA (35) (39) (74) (80) (229) (38) (8,6)
= EBITDA (ADJUSTED FOR SPECIAL FACTORS) 96 136 131 147 509 57 (40,6)
EBITDA margin (adjusted for special factors) % 5,6 8,1 7,7 8,1 7,4 3,4 (2.2p)
SPECIAL FACTORS
2017 2017 2017 2017 2017 2018
EFFECTS ON EBITDA (35) (39) (74) (80) (229) (38) (8,6)
- of which personnel (14) (18) (54) (46) (132) (24) (71,4)
- of which other (21) (21) (20) (34) (97) (14) 33,3
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT 2 (35) (42) (1.319) (82) (1.477) (38) (8,6)
- of which personnel (14) (18) (54) (46) (132) (24) (71,4)
- of which other 2 (21) (23) (1.265) (36) (1.345) (14) 33,3
1 The business of T-Systems Polska Sp. z o.o., which was previously organizationally assigned to the Systems Solutions operating segment, is disclosed under the Europe operating segment as of September 1, 2017. Figures for prior periods
were not adjusted.
2 Q3/2017: Impairment Goodwill T-Systems Market Unit (1.2 bn.€)
NOTES
CONTENT DT

GROUP DEVELOPMENT
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 595 562 545 561 2.263 528 (11,3)
Netherlands 341 345 327 342 1.355 309 (9,4)
DFMG 217 213 217 217 864 218 0,5
Other 37 4 1 2 44 0 n.a.
EBITDA 238 236 220 220 915 231 (2,9)
Netherlands 110 119 98 94 421 108 (1,8)
DFMG 124 126 126 133 510 130 4,8
Other 4 (9) (4) (7) (16) (7) n/a
Depreciation, amortization and impairment losses (71) (71) (72) (89) (304) (78) (9,9)
Profit (loss) from operations = EBIT 167 165 148 131 611 153 (8,4)
CASH CAPEX 81 57 76 76 290 85 4,9

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 595 562 545 561 2.263 528 (11,3)
NET REVENUE 444 415 394 408 1.660 376 (15,3)
EBITDA 1,2,3 758 460 415 176 1.808 227 (70,1)
Profit (loss) from operations = EBIT 686 388 343 87 1.504 148 (78,4)
CASH CAPEX 81 57 76 76 290 85 4,9
CASH CONTRIBUTION 677 403 339 100 1.518 142 (79,0)
1 Q1/17: Income from the sale of stake in Strato AG.

2 Q2/17: Income from the sale of stake in Scout24.
3 Q3/17: Income from settlement agreement with BT.
GROUP DEVELOPMENT
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 595 562 545 561 2.263 528 (11,3)
Profit (loss) from operations = EBIT 686 388 343 87 1.504 148 (78,4)
- Depreciation, amortization and impairment losses (71) (71) (72) (89) (304) (78) (9,9)
= EBITDA 758 460 415 176 1.808 227 (70,1)
EBITDA margin % n.a. 81,9 76,1 31,4 79,9 43,0 n.a.
- Special factors affecting EBITDA 519 223 195 (44) 893 (5) n.a.
= EBITDA (ADJUSTED FOR SPECIAL FACTORS) 238 236 220 220 915 231 (2,9)
SPECIAL FACTORS1, 2, 3
2017 2017 2017 2017 2017 2018
EFFECTS ON EBITDA 519 223 195 (44) 893 (5) n.a.
- of which personnel 5 (1) (1) (3) 1 (2) n.a.
- of which other 514 224 196 (41) 892 (3) n.a.
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT 519 223 195 (44) 893 (5) n.a.
- of which personnel 5 (1) (1) (3) 1 (2) n.a.
- of which other 514 224 196 (41) 892 (3) n.a.
1 Q1/17: Income from the sale of stake in Strato AG.

2 Q2/17: Income from the sale of stake in Scout24.
3 Q3/17: Income from settlement agreement with BT.
NETHERLANDS
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 341 345 327 342 1.355 309 (9,4)
PRODUCT VIEW 341 345 327 342 1.355 309 (9,4)
- Fixed network 21 22 23 23 89 23 9,5
- Mobile communications 320 323 304 319 1.266 286 (10,6)
SEGMENT VIEW 341 345 327 342 1.355 309 (9,4)
EBITDA 110 119 98 94 421 108 (1,8)
EBITDA MARGIN (EBITDA / TOTAL REVENUE) % 32,3 34,5 30,0 27,5 31,1 35,0 2,7p
NETHERLANDS
OPERATIONALS
Note 2017 2017 2017 2017 2017 2018 %
- IP ('000) 176 184 188 191 191 198 12,5
Broadband Access Lines Retail ('000) 176 184 188 191 191 198 12,5
Service revenue (€ million) 226 228 220 213 888 193 (14,6)
Service revenue EXCL. IFRS 15 207 (8,4)
CUSTOMERS ('000) 3.789 3.830 3.876 3.850 3.850 3.905 3,1
- contract ('000) 3.051 3.112 3.178 3.254 3.254 3.337 9,4
- prepaid ('000) 738 719 698 596 596 568 (23,0)
NET ADDS ('000) 43 41 45 (26) 104 55 27,9
- contract ('000) 69 61 66 77 272 83 20,3
- prepaid ('000) (26) (19) (20) (102) (168) (28) (7,7)
- contract (%) 1,0 0,9 1,0 1,0 1,0 1,0 0,0p
ARPU € 20 20 19 18 19 16 (20,0)
- contract € 24 23 22 20 22 19 (20,8)
- prepaid € 4 3 3 4 4 4 0,0
- contract (min) 217 226 228 251 309 250 15,4
NOTES
CONTENT DT

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 735 785 741 674 2.935 651 (11,4)
NET REVENUE 88 83 52 55 278 48 (45,5)
EBITDA (113) (76) (102) (370) (661) (70) 38,1
EBITDA margin (EBITDA / total revenue) % (15,4) (9,7) (13,8) (54,9) (22,5) (10,8) 4.6p
Profit (loss) from operations = EBIT (261) (268) (261) (528) (1.318) (232) 11,1
CASH CAPEX 242 239 231 294 1.005 248 2,5
CASH CONTRIBUTION (355) (315) (333) (664) (1.666) (318) 10,4

2017 2017 2017 2017 2017 2018
TOTAL REVENUE 735 785 741 674 2.935 651 (11,4)
NET REVENUE 88 83 52 55 278 48 (45,5)
EBITDA (128) (76) (148) (428) (780) (162) (26,6)
EBITDA margin (EBITDA / total revenue) % (17,4) (9,7) (20,0) (63,5) (26,6) (24,9) (7.5p)
Profit (loss) from operations = EBIT (276) (268) (307) (586) (1.437) (324) (17,4)
CASH CAPEX 242 239 231 294 1.005 248 2,5
CASH CONTRIBUTION (370) (315) (379) (722) (1.785) (410) (10,8)
2017 2017 2017 2017 2017 2018
TOTAL REVENUE 735 785 741 674 2.935 651 (11,4)
Profit (loss) from operations = EBIT (276) (268) (307) (586) (1.437) (324) (17,4)
- Depreciation, amortization and impairment losses (148) (192) (159) (158) (657) (162) (9,5)
= EBITDA (128) (76) (148) (428) (780) (162) (26,6)
EBITDA margin % (17,4) (9,7) (20,0) (63,5) (26,6) (24,9) (7.5p)
- Special factors affecting EBITDA (16) 1 (46) (58) (119) (92) n.a.
= EBITDA (ADJUSTED FOR SPECIAL FACTORS) (113) (76) (102) (370) (661) (70) 38,1
EBITDA margin (adjusted for special factors) % (15,4) (9,7) (13,8) (54,9) (22,5) (10,8) 4.6p
SPECIAL FACTORS
2017 2017 2017 2017 2017 2018
EFFECTS ON EBITDA (16) 1 (46) (58) (119) (92) n.a.
- of which other 3 26 (14) (27) (12) (16) n.a.
EFFECTS ON PROFIT (LOSS) FROM OPERATIONS = EBIT (16) 1 (46) (58) (119) (92) n.a.
- of which other 3 26 (14) (27) (12) (16) n.a.
NOTES
DTAG
GLOSSARY AND DISCLAIMER
In addition to financial information presented in accordance with IFRS, this presentation contains non-GAAP financial measures,
such as ... which is defined as ...
EBIT Abbreviation for EARNINGS BEFORE INTEREST AND TAXES. EBIT is equivalent to the P&L-line "Profit from operations".
Adj. EBIT EBIT adjusted for special factors.
EBT Abbreviation for EARNINGS BEFORE TAXES. EBT is equivalent to the P&L-line "Profit before income taxes".
Adj. EBT EBT adjusted for special factors.
Abbreviation for EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION. EBITDA is equivalent to EBIT before Depreciation and Amortization.
EBITDA
Depreciation and Amortization is not a line in the P&L but provided in the notes as "Other disclosures".
Adj. EBITDA EBITDA adjusted for special factors.
Net profit/loss adjusted for special factors.
Special factors Special factors impair the comparability of the results with previous periods. Details on the special factors are given for the group and each operating segment.
Cash capex Cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment.
Cash contribution EBITDA minus capex.
Free cash flow Net cash from operating activities minus net cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment.
Gross debt includes not only bonds and liabilities to banks, but also liabilities to non-banks from promissory notes, lease liabilities, liabilities arising from ABS transactions
Gross debt
(capital market liabilities), liabilities from derivatives and cash collateral.
Net debt is calculated by deducting cash and cash equivalents as well as financial assets classified as held for trading and available for sale (due ≤ 1 year). In addition,
Net debt
receivables from derivatives and other financial assets are deducted from gross debt.
n.a. not applicable
n.m. not meaningful
Abbreviation for AVERAGE REVENUE PER USER. Calculation: Service fee, as well as voice, non voice, roaming and visitor revenues, divided by the average number of
ARPU
customers in the period. Visitor revenues are allocated exclusively to contract customers.
Abbreviation for SUBSCRIBER ACQUISITION COSTS. Calculation: Customer acquisition costs divided by the number of gross customers added during the respective
SAC
period.
The figures in this presentation are unaudited. These and the other non-GAAP financial measures used by Deutsche Telekom are derived from our IFRS financial information but do not
comply with IFRS and should not be viewed as a substitute for our IFRS figures.

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DEUTSCHE TELEKOM

INTERIM GROUP REPORT

SELECTED FINANCIAL DATA OF THE GROUP

Q1 2018 Q1 2017 Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

INTERIM GROUP MANAGEMENT REPORT

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Deutsche Telekom. Interim Group Report Q1 2018.

DEUTSCHE TELEKOM AT A GLANCE

EBIT decreased by EUR 0.6 billion to EUR 2.2 billion.

EUR 0.7 billion impairment of our financial stake in BT recognized in profit or loss, as 1.5

Deutsche Telekom. Interim Group Report Q1 2018.

Cash capex CASH CAPEX

Free cash flow FREE CASH FLOW

Deutsche Telekom. Interim Group Report Q1 2018.

HIGHLIGHTS IN THE FIRST QUARTER OF 2018 INVESTMENTS IN NETWORKS

Deutsche Telekom. Interim Group Report Q1 2018.

Major awards in the first quarter of 2018

eLearning Award 2018:

EMEA/MEE Partner World’s most KONSUMENT test winner:

Deutsche Telekom. Interim Group Report Q1 2018.

INTERIM GROUP MANAGEMENT REPORT

GROUP ORGANIZATION, STRATEGY, OUTLOOK

Deutsche Telekom. Interim Group Report Q1 2018.

Main spectrum awards

Start of award End of award Spectrum

Deutsche Telekom. Interim Group Report Q1 2018.

Contribution of the segments to net revenue

Q1 2018 Q1 2017 Change Change % FY 2017

Breakdown of revenue by regions Contribution of the segments to net revenue a

0.8 2.1 0.3

Deutsche Telekom. Interim Group Report Q1 2018.

Contribution of the segments to adjusted Group EBITDA

Q1 2018 Q1 2017 Change Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

FINANCIAL POSITION OF THE GROUP

Structure of the consolidated statement of financial position

35 % Non-current financial liabilities

35 % 6% Current financial liabilities

Deutsche Telekom. Interim Group Report Q1 2018.

Changes in net debt

Free cash flow (before dividend payments and spectrum investment)

Q1 2018 Q1 2017 Change Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

Total Fixed network

Q1 2018 Q1 2017 Change Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

Wholesale customers. Wholesale net customer additions were 229 thou­

Q1 2018 Q1 2017 Change Change % FY 2017

Total revenue 2018, T-Mobile US expects additional expenses to be incurred in 2018,

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

Q1 2018 Q1 2017 Change Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

Deutsche Telekom. Interim Group Report Q1 2018.

Q1 2018 Q1 2017 Change Change % FY 2017

Deutsche Telekom. Interim Group Report Q1 2018.

EBITDA, adjusted EBITDA EBIT, adjusted EBIT

After successfully repositioning itself in the market, T-Mobile Nether-

Wholesale customers. Wholesale net customer additions were 229 thou

Overall, special factors negatively affecting EBITDA – in particular staff- REGULATION