Deutsche Telekom AG - The 2009 financial year

Supervisory Board activities in the 2009 financial year. The Supervisory Board continuously monitored the management of business and the management of the Group by the Board of Management. The benchmark for this monitoring role was in particular to ensure that the management of business and the management of the Group were lawful, compliant, appropriate, and efficient. The written and oral reports of the Board of Management formed the primary basis for complying with the statutory task of monitoring. The Board of Management regularly reported to the Supervisory Board on the corporate planning, business developments, and significant business transactions of the Company and of principal subsidiaries and associates. At the meetings of the Supervisory Board and its committees, the Supervisory Board regularly reviewed the current situation of the Company on the basis of the Board of Management’s written and oral reports. In particular, the development of business was discussed in all of the Supervisory Board meetings. Deviations from the originally planned course of business were discussed. The Board of Management fulfilled its duties to inform the Supervisory Board quickly and completely. The reports of the Board of Management met the requirements imposed on them by law, good corporate governance, and by the Supervisory Board with regard to both content and scope. In addition to the reports, the Supervisory Board asked for supplementary information and details to be submitted. The Supervisory Board critically analyzed the plausibility of, and scrutinized and reviewed the reports and other information submitted by the Board of Management. A catalog produced by the Supervisory Board, which is an integral part of the Rules of Procedure of the Supervisory Board and the Board of Management and is regularly checked for any necessary adjustments by the Supervisory Board, lists the types of transactions and measures of fundamental importance for which the Board of Management has to obtain approval from the Supervisory Board. The Supervisory Board discussed with the Board of Management and thoroughly reviewed the transactions and measures that had to be submitted to the Supervisory Board for approval. The discussions and reviews regularly focused on the benefits and effects of the transaction concerned. The Supervisory Board approved all the transactions and measures submitted to it for approval. In addition, the Audit Committee regularly looked into relevant issues including the quarterly reports, discussed these with the external auditors, and approved the quarterly reporting. Between meeting dates, the Chairman of the Supervisory Board at regular intervals discussed the strategy, business development and risk management of the Company with the Board of Management, and especially its Chairman, and was informed about business activities and significant events. In addition to the issues covered by legally required regular reports by the Board of Management, the Supervisory Board dealt intensively in particular with the following issues: – The merger of fixed-network and mobile communications in the standard German market, which resulted in the approval or recommendation for decision to the extraordinary shareholders’ meeting on the issue. – The regional focus of operational responsibility, moving away from a business area-oriented structure, and the associated new distribution of responsibilities within the Board of Management, which was approved by the Supervisory Board. – Monitoring of the integration of the Greek OTE group into the Deutsche Telekom Group. – Establishment of a mobile communications joint venture between T-Mobile UK and Orange UK in the United Kingdom, which was approved. – Development of the regulatory and competitive environment, and the resulting actions taken by the Group. – Budget and medium-term planning and dividend policy of the Group. The necessary approval was given. 31To our shareholders Supervisory Board’s report