T-Systems Significantly Increases Order Entry in the Fourth Quarter

     T-Systems Significantly Increases Order Entry in the Fourth Quarter

  PR Newswire

  BONN and FRANKFURT, Germany, February 28, 2013

BONN and FRANKFURT, Germany, February 28, 2013 /PRNewswire/ --

  *Growing overall revenues andexternal businessdespite the global
    financial crisis.
  *Rising adjusted EBIT and adjusted EBIT margin.
  *Expanding number of cloud contracts.

In the 2012 financial year, T-Systems recorded order entry of EUR8.7 billion,
up some 18percent year-on-year. This encouraging development was driven by
major contracts in the fourth quarter with oil company Shell and the state of
Lower Saxony. The extension of the contract with Shell for another five years
in particular shows that T-Systems has further improved its position in the
strategically important market for cloud services.

Despite persistent price pressure, external revenue was up 0.6percent
year-on-year at EUR6.6 billion. Total revenue also increased by 0.6percent
to EUR10 billion. This increase is due to strong international revenue, which
rose by some 6percent compared with 2011 to EUR3.2 billion. The company is
successfully counteracting the ongoing price pressure in the industry with
cost-cutting and efficiency measures and improved its adjusted EBIT margin
steadily over the course of the year to 2.4percent in the fourth quarter of

T-Systems once again recorded significant successes in the area of intelligent
networks in 2012, such as the major contract from Presbyterian, an operator of
hospitals in the United States. In addition to IT services from the cloud, the
contract covers the joint development of new e-health applications in the
future. In the growth area of the connected car, automotive group Daimler is
working with Deutsche Telekom to provide in-car online services. Deutsche
Telekom developed the communications infrastructure for the multimedia system
Command Online in Mercedes Benz vehicles. This will allow the driver and
passengers to use applications via the Internet while in the vehicle,
including real-time traffic information, mobility services, personal radio,
and access to social networks.

Systems Solutions operating segment*:

                    Q4 2012  Q4 2011         FY 2012  FY 2011
                                      Change                   Change
                    millions millions        millions millions
                     of EUR   of EUR    %     of EUR   of EUR    %
    Total revenue      2,829    2,694    5.0   10,016    9,953    0.6
    Net revenue        1,771    1,726    2.6    6,609    6,567    0.6
    Order entry        3,622    1,928   87.9    8,737    7,396   18.1
    EBIT                (60)     (62)    3.2    (299)    (290)  (3.1)
    Adjusted EBIT         67       54   24.1      110       23   n.a.
    Adjusted EBIT
    margin              2.4%     2.0%   0.4p     1.1%     0.2%   0.9p
    EBITDA               125      114    9.6      350      379  (7.7)
    Adjusted EBITDA      240      220    9.1      747      672   11.2
    Adjusted EBITDA
    margin              8.5%     8.2% (0.3p)     7.5%     6.8%   0.7p
    Number of
    (average)         52,991   52,213    1.5   52,742   52,241    1.0

Comment on the table:

As of July1, 2012, Deutsche Telekom reorganized the Group's IT infrastructure
and pooled the existing units from the Germany operating segment and Group
Headquarters & Shared Services into the Systems Solution operating segment as
the new Telekom IT unit. The prior-year figures have been adjusted for better

This media release contains forward-looking statements that reflect the
current views of Deutsche Telekom management with respect to future events.
These forward-looking statements include statements with regard to the
expected development of revenue, earnings, profits from operations,
depreciation and amortization, cash flows, and personnel-related measures. You
should consider them with caution. Such statements are subject to risks and
uncertainties, most of which are difficult to predict and are generally beyond
Deutsche Telekom's control. Among the factors that might influence our ability
to achieve our objectives are the progress of our workforce reduction
initiative and other cost-saving measures, and the impact of other significant
strategic, labor, or business initiatives, including acquisitions,
dispositions and business combinations, and our network upgrade and expansion
initiatives. In addition, stronger than expected competition, technological
change, legal proceedings, and regulatory developments, among other factors,
may have a material adverse effect on our costs and revenue development.
Further, the economic downturn in our markets, and changes in interest and
currency exchange rates, may also have an impact on our business development
and the availability of financing on favorable conditions. Changes to our
expectations concerning future cash flows may lead to impairment write downs
of assets carried at historical cost, which may materially affect our results
at the group and operating segment levels. If these or other risks and
uncertainties materialize, or if the assumptions underlying any of these
statements prove incorrect, our actual performance may materially differ from
the performance expressed or implied by forward-looking statements. We can
offer no assurance that our estimates or expectations will be achieved.
Without prejudice to existing obligations under capital market law, we do not
assume any obligation to update forward-looking statements to take new
information or future events into account or otherwise.

In addition to figures prepared in accordance with IFRS, Deutsche Telekom also
presents non-GAAP financial performance measures, including, among others,
EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT,
adjusted net income, free cash flow, gross debt, and net debt. These non-GAAP
measures should be considered in addition to, but not as a substitute for, the
information prepared in accordance with IFRS. Non-GAAP financial performance
measures are not subject to IFRS or any other generally accepted accounting
principles. Other companies may define these terms in different ways.

Deutsche Telekom AG Corporate Communications Tel.: +49-228-181-4949 E-Mail: 

Further information for the media at: http://www.telekom.com/media and
Press spacebar to pause and continue. Press esc to stop.