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 9,685 4,645 5,040 n.a. 4,600 Of which: Hungary 1,682 2,006 (324) (16.2) 2,047 Of which: Croatia 1,161 1,223 (62) (5.1) 1,202 Of which: Slovakia 974 994 (20) (2.0) 932 Of which: Greece 3,899 – – – – Of which: Romania 1,104 – – – – Of which: Othera 976 435 541 n.a. 436 EBIT (profit from operations) 1,037 915 122 13.3 1,010 EBIT margin (%) 10.7 19.7 22.0 Depreciation, amortization and impairment losses (2,747) (1,034) (1,713) n.a. (937) EBITDAb 3,784 1,949 1,835 94.2 1,947 Special factors affecting EBITDA (42) (65) 23 35.4 (93) Adjusted EBITDAb 3,826 2,014 1,812 90.0 2,040 Of which: Hungary 675 820 (145) (17.7) 822 Of which: Croatia 525 557 (32) (5.7) 555 Of which: Slovakia 439 427 12 2.8 440 Of which: Greece 1,447 – – – – Of which: Romania 293 – – – – Of which: Othera 445 211 234 n.a. 223 Adjusted EBITDA margin (%) 39.5 43.4 44.3 Cash capex (1,610) (865) (745) (86.1) (732) Number of employeesc 51,172 21,229 29,943 n.a. 23,442 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. Southern and Eastern Europe (SEE) includes the fixed network and mobile communications companies T-Hrvatski Telekom, Slovak Telekom, Magyar Telekom, Makedonski Telekom, Crnogorski Telekom and the OTE group: Fixed Network Greece and Cosmote Greece (financial figures include the domestic mobile operator Cosmote and the sales company Germanos); Romtelecom and Cosmote Romania (financial figures include the domestic mobile operator Cosmote and the sales company Germanos); and Zapp since November 1, 2009; Cosmote Bulgaria (financial figures include the domestic mobile operator Globul and the sales company Germanos) and Cosmote Albania (includes the national operator AMC). a “Other” includes revenue and EBITDA at the companies AMC (Albania), Globul (Bulgaria), Makedonski Telekom (the F.Y.R.O. Macedonia), T-Mobile Macedonia (the F.Y.R.O. Macedonia) and Crnogorski Telekom (Montenegro: mobile communications and fixed network). b 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.” c Average of all employees. Cash capex. Cash capex in the Southern and Eastern Europe operating segment rose by EUR 0.7 billion year-on-year to EUR 1.6 billion. This increase was substantially due to the first-time consolidation of the OTE group. Slightly higher invest- ments in Croatia and Montenegro relate to broadband roll-out. Otherwise cash capex in the 2009 financial year was down on the prior year, due in part to exchange rate effects. Personnel. The average number of employees increased sharply in 2009 compared with the prior year, mainly due to the first-time full consolidation of the OTE group, whose headcount at the date of consolidation was 33,600. Apart from this, the number of employees was reduced in Croatia and Slovakia by the improvement of performance processes. In the 2009 finan- cial year, this was also true of the fixed-network parts of the OTE group. Some 550 employees were included for the first time in the fourth quarter of 2009 due to the first-time consolidation of the Romanian company Zapp. 91Group management report Development of business in the operating segments