Deutsche Telekom AG - The 2009 financial year

The topics dealt with by the Audit Committee include those allocated to it in accordance with German legislation and the German Corporate Governance Code. These include in particular the monitoring of accounting and the monitoring of the effectiveness of the internal control system, the risk management system, and the internal auditing system. The Audit Committee also deals with auditing, in particular with the independence of the external auditors and the additional services provided by the auditors, compliance and data protection issues. Furthermore, within the scope of mandatory German law, the Audit Committee also deals with all those duties which are allocated to an audit committee under applicable U.S. law with respect to listed companies with their registered office outside the United States. In consideration of the imminent changes ensuing from the German Accounting Law Modernization Act, the Audit Committee has extended and detailed its competencies in respect of the duties assigned to it by the Supervisory Board. The members of the Audit Committee are the same as those of the Finance Committee. Dr. h.c. Bernhard Walter, Chairman of the Audit Committee, as an independent member is knowledgeable in the areas of accounting and auditing (§100 (5) of the German Stock Corporation Act [Aktiengesetz – AktG]). The Audit Committee successfully underwent an external examination of efficiency in the 2009 financial year. The Staff Committee deals with personnel matters at Deutsche Telekom, in particular the Company’s staff structure and human resources development and planning. The Staff Committee dealt in particular with matters relating to headcount levels and requirement planning in preparation for resolutions by the Supervisory Board on budgets and medium-term planning. Members: Lothar Schröder (Chairman), Dr. Hubertus von Grünberg, Prof. Dr. Ulrich Lehner, Waltraud Litzenberger. The Nomination Committee is responsible for proposing to the Supervisory Board suitable candidates for recommendation to the shareholders’ meeting for election. In 2009, in observation of statutory requirements and the provisions of the German Corporate Governance Code, the Nomination Committee dealt with the filling of the Supervisory Board seats left vacant by the departure of Prof. Dr. Reitzle and Prof. Dr. von Schimmelmann effective January 1, 2010 and agreed with the Board of Manage- ment on the Board’s application for the appointment of Dr. Bernotat and Prof. Dr. Middelmann by court order. In accordance with the recommendation outlined in the German Corporate Governance Code, this committee consists exclusively of shareholder representatives. Members: Prof. Dr. Ulrich Lehner, Jörg Asmussen. The Mediation Committee required pursuant to §27 (3) of the German Codetermination Act (Mitbestimmungsgesetz – MitbestG) performs the duties incumbent on it under the law. It did not meet in the 2009 financial year. Members: Prof. Dr. Ulrich Lehner (Chairman), Dr. Hubertus von Grünberg, Waltraud Litzenberger, Lothar Schröder. A special committee has been established as of January 1, 2010 to monitor the Company’s participation in the spectrum auction for the fourth generation of mobile communications in Germany. Members: Prof. Dr. Ulrich Lehner (Chairman), Waltraud Litzenberger, Lothar Schröder, Dr. h.c. Bernhard Walter. The chairpersons of each committee regularly informed the Supervisory Board at its meetings of the content and results of committee meetings. 33To our shareholders Supervisory Board’s report