Deutsche Telekom AG - The 2009 financial year

Development of operations. 2009 millions of € 2008 millions of € Change millions of € Change % 2007 millions of € Total revenue 10,034 11,354 (1,320) (11.6) 11,234 Of which: T-Mobile UK 3,390 4,051 (661) (16.3) 4,812 Of which: T-Mobile NLa 1,807 1,806 1 0.1 1,318 Of which: PTC 1,757 2,260 (503) (22.3) 1,965 Of which: T-Mobile CZ 1,191 1,329 (138) (10.4) 1,171 Of which: T-Mobile A 1,038 1,085 (47) (4.3) 1,182 Of which: Otherb 909 896 13 1.5 858 EBIT (profit (loss) from operations) (905) 496 (1,401) n.a. 86 EBIT margin (%) (9.0) 4.4 0.8 Depreciation, amortization and impairment losses (3,411) (2,357) (1,054) (44.7) (2,700) EBITDAc 2,506 2,853 (347) (12.2) 2,786 Special factors affecting EBITDAc (51) (86) 35 40.7 (130) Adjusted EBITDAc 2,557 2,939 (382) (13.0) 2,916 Of which: T-Mobile UK 611 888 (277) (31.2) 1,183 Of which: T-Mobile NLa 430 352 78 22.2 279 Of which: PTC 616 785 (169) (21.5) 646 Of which: T-Mobile CZ 614 634 (20) (3.2) 513 Of which: T-Mobile A 283 285 (2) (0.7) 336 Of which: Otherd 1 (12) 13 n.a. (32) Adjusted EBITDA marginc (%) 25.5 25.9 26.0 Cash capexe (879) (1,152) 273 23.7 (1,148) Number of employeesf 18,105 17,945 160 0.9 17,189 The contributions of the national companies generally correspond to their respective unconsolidated financial statements and do not take into consideration consolidation effects at the operating segment level. a Including consolidation of Orange Nederland from October 2007 and Online Netherlands from June 2008. b “Other”: primarily International Carrier Sales and Solutions (ICSS). c Deutsche Telekom defines EBITDA as profit/loss from operations before depreciation, amortization and impairment losses. For a detailed explanation of the special factors affecting EBITDA, adjusted EBITDA, and the adjusted EBITDA margin, please refer to the section on “Development of business in the Group.” d “Other”: primarily ICSS, headquarters of the Europe operating segment, T-Mobile International UK. e Investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the statement of cash flows. f Average of all employees. Total revenue. Total revenue in the Europe operating segment decreased by EUR 1.3 billion or 11.6 percent year-on-year. 68 percent of the revenue decline were due to negative exchange rate effects from the Polish zloty, the pound sterling and the Czech koruna. Revenue in the Europe operating segment in 2009 was also negatively affected by the strained economic situation, continuing high competitive pressure and regulatory intervention. Adjusted for exchange rate fluctuations, PTC did not achieve the same revenue figure as in the previous year, which was primarily attributable to a regulation-induced reduction in revenue from termination charges. There is a similar picture at T-Mobile Austria, where falling revenues from termina- tion charges were also the main reason for the decline in revenue. The reduction in revenue at T-Mobile UK and T-Mobile CZ – after elimination of exchange rate effects – was largely related to service revenues in the prepay sector. Regulatory decisions and continued intense competition also impacted revenue. At T-Mobile Netherlands, revenue remained stable at the prior-year level. Although T-Mobile Netherlands was also affected by 87Group management report Development of business in the operating segments