Deutsche Telekom AG - The 2009 financial year

The T-Share. Capital markets environment. 2009 was another turbulent year for stock markets around the world. After the capital markets reached new lows in early March 2009 on the back of negative trends reported by companies and speculation about the scale and scope of the financial and economic crisis, stock markets recorded a clear upswing in the second half of the year. The developments on the stock markets were helped by a general trend toward recovery in the global economy. Economies in emerging countries already started to pick up in the second quarter of 2009. This stimulation of global trade markets resulted in numerous economic indicators suggesting a turnaround from mid-2009, including in industrialized countries. Development of international indexes. After a temporary drop of over 20 percent as compared to the start of 2009, the leading German index, the DAX 30, closed 2009 up 23.8 percent. The leading European index, the DowJones STOXX 50®, gained 24.1 percent over the year and the broader DowJones STOXX 600®, which brings together the 600 biggest European stocks, recorded its best year since 1999 with a plus of 27.6 percent. The main U.S. indexes also benefited from the positive economic indicators in the second half of 2009 as the financial crisis calmed down. The Dow Jones Industrial Index gained 18.8 percent over the course of the year. The NASDAQ technology index closed the year up 43.9 percent while the S&P-500 recorded a plus of 23.5 percent. The Japanese Nikkei 225 index gained 19 percent over the same period. T-Share performance. The T-Share also had a volatile year on the markets in 2009, reaching its high for the year of EUR 11.39 right at the beginning of the year on January 5, 2009. It hit its low for the year of EUR 7.93 in June after Deutsche Telekom had revised its guidance for 2009 in April and the dividend was paid in May. Supported by steadily growing confidence on the capital market that Deutsche Telekom would achieve its adjusted targets for 2009, the T-Share gained over EUR 1.89 or 22.5 percent in value in the second half of the year and closed the year at EUR 10.29. Overall, the T-Share lost 4.2 percent over the year. A turbulent year on the stock exchanges closed on a positive trend // Telecommunications stocks recovered in the second half of the year T-Share information. 2009 2008 Xetra closing prices (€) Share price on the last trading day 10.29 10.75 Year high 11.39 15.55 Year low 7.93 9.00 Trading volume German exchanges (billions of shares) 5.3 8.4 New York Stock Exchange (ADRs) (millions of shares) 356 380 Tokyo Stock Exchange (millions of shares) 0.3 0.2 Market capitalization on the last trading day (billions of €) 44.9 46.9 Weighting of the T-Share in major stock indexes on the last trading day DAX 30 (%) 5.8 7.2 Dow Jones Euro STOXX 50® (%) 1.2 1.6 T-Share – key figures Earnings per share (basic and diluted) (€) 0.08 0.34 Proposed dividend (€) 0.78 0.78 Number of shares issued (millions, at year-end) 4,361.32 4,361.32 45To our shareholders Corporate governance The T-Share