Deutsche Telekom AG - The 2009 financial year

their audits and their main audit results, explained their audit reports, and answered questions of the members of the Supervisory Board on the nature and extent of the audits and the audit results. This and the report presented by the Audit Committee allowed the Supervisory Board to satisfy itself that the audits and audit reports were compliant. Following the recommendation of the Audit Committee, the Supervisory Board concurred with the result of the audits conducted by the auditors. Based on the final result of the Supervisory Board’s own review of the annual financial statements, management report, consolidated financial statements, and Group management report as well as the Board of Management’s proposal for the appropriation of net income, there were no objections to be raised. The same applies to the corporate governance statement insofar as it is not to be audited by the auditors. Following the recommendation of the Audit Committee, the Supervisory Board approved the annual financial statements and the management report as well as the consolidated financial statements and the Group management report. In particular, the Supervisory Board approved the transfer of EUR 0.0 in profit after income taxes from the single-entity financial statements of Deutsche Telekom AG (income after taxes) to other retained earnings in accordance with §58 (2) of the German Stock Corporation Act in conjunction with §19 (3) of the Articles of Incorporation. The approval of the Supervisory Board means that the annual financial statements are approved. The Supervisory Board’s assessment of the position of the Company and the Group is the same as that of the Board of Management presented in its management report and Group management report. In accordance with the recommendations of the Audit, the Supervisory Board approved the Board of Management’s proposal for the appropriation of net income and concurred with its proposal. At the time of the approval of the Company’s medium-term financial planning for the next three years by the Board of Management and the Supervisory Board on December 17, 2009, the Supervisory Board concerned itself intensively with the medium-term financial and investment plans, in particular with the development of earnings, free cash flow, and balance sheet ratios. The Board of Management’s proposal regarding the appro- priation of net income, submitted on February 8, 2010, was discussed at the Audit Committee meeting on February 23, 2010 and the Supervisory Board meeting on February 24, 2010, with auditors present at both meetings. The proposal foresaw a total payment to shareholders of around EUR 3.4 billion and a carryforward of the remaining balance to unappropriated net income of around EUR 3.0 billion. The Supervisory Board approved and supported the proposal. Review of the dependent company report. The Board of Management’s dependent company report for the 2009 financial year was approved by the Board of Management on February 8, 2010 and presented to the Supervisory Board in good time. The external auditors audited the dependent company report and issued the following audit opinion: “Based on the results of our statutory audit and our judgment we confirm that 1. the actual information in the report is correct; 2. the Company’s compensation with respect to the legal transactions listed in the report was not inappropriately high.” The auditors submitted the audit report to the Supervisory Board. The dependent company report and the respective audit report were made available to all members of the Supervisory Board in good time. The Supervisory Board for its part reviewed the dependent company report of the Board of Management and the audit report of the auditors. 37To our shareholders Supervisory Board’s report