Deutsche Telekom AG - The 2009 financial year

Net revenue amounted to EUR 64.6 billion in 2009, almost EUR 3 billion or 4.8 percent more than in the prior year. This increase is mainly attributable to the Greek company OTE which we fully consolidated for the first time in 2009. Overall, the proportion of revenue generated outside Germany grew by more than three percentage points to 56.6 percent. Adjusted EBITDA increased to EUR 20.7 billion, from EUR 19.5 billion in 2008. Free cash flow remained stable at EUR 7 billion, as did adjusted net profit at EUR 3.4 billion. This result means we achieved our annual goals as revised in April 2009. In a difficult year, fraught with great economic uncertainty, this was by no means a matter of course. It paid off that we took resolute action. The great success of our Save for Service program was also helpful. Initially, we had aimed for gross savings of EUR 4.2 to 4.7 billion between 2006 and 2010. Already by the end of the financial year 2009, we far exceeded this target, with total savings of EUR 5.9 billion. Over the past year we have set a new course for the future of the Group: We have put a new Board of Management structure in place which strengthens central functions and establishes clear responsibilities for countries and regions. In November, the extraordinary shareholders’ meeting approved the formation of a new company for Germany that will consolidate fixed-network and mobile communications in the future. We started reporting in the new structure in the third quarter of 2009 – with the segments of Germany, United States, Europe, Southern and Eastern Europe, and Systems Solutions. Germany: Market lead strengthened. In Germany, we already sold our Internet-based television service Entertain more than one million times. The success of the LIGA total! product, which Deutsche Telekom launched in summer 2009, also contributed to this development. Our customers can follow Germany’s first- and second-division national league soccer matches in HD quality on television at home, as well as by cell phone when on the move. In a broadband market with slowing growth, we attracted almost a million new DSL customers in 2009. This equates with a market share of around 45 percent of new customers in this hotly contested segment. In the German mobile communications market, we were particularly successful in attracting contract customers who are especially important to us. Year-on-year, the number of contract customers increased by around one percent to 17.2 million. Attractive Internet-capable smartphones such as the Apple iPhone, some 1.5 million of which have been sold since its launch in Germany, contributed to the further expansion of our market leadership in service revenues. Mobile data revenues grew significantly again – by 46 percent year-on-year. United States: Network build-out ensures opportunities with the mobile Internet. Without doubt, business in the United Sates has been difficult. Nevertheless, we have increased our customer base in our U.S. mobile communications business by approximately one million year-on-year to almost 34 million. To increase our share in the strong growth of mobile data business in the future, we made enormous investments in network infrastructure over the past year. We are now able to offer third-generation mobile communications services for more than 205 million people – which means our coverage has almost doubled within one year. 25To our shareholders Letter to our shareholders