T-Systems Starts the Year with Strong Order Entry

              T-Systems Starts the Year with Strong Order Entry

  PR Newswire

  BONN and FRANKFURT, Germany, May 8, 2013

BONN and FRANKFURT, Germany, May 8, 2013 /PRNewswire/ --

  *Profitability boosted further.
  *External revenue virtually stable despite fierce competition.

It is important to remember that mid-2012 Deutsche Telekom consolidated
external business under T-Systems in what is known as the Market Unit and
pooled all of the Group's internal IT departments in a separate unit called
Telekom IT. The latter aims to save costs for the Group and provides internal
IT services by billing only cost, no longer margins. The Market Unit is
responsible worldwide for serving Deutsche Telekom's corporate customers and
operates in accordance with the principles of revenue and margin growth.

The positive trend for T-Systems in the fourth quarter of 2012 is continuing.
In the first quarter of 2013, Deutsche Telekom AG's Systems Solutions segment
recorded strong order entry of EUR2.1 billion, up 33 percent compared with
the prior-year period. This was due to agreements with EADS and the Swiss
National Railways (SBB) as well as numerous deals for cloud services.

In the area of intelligent networks, T-Systems concluded further strategically
important agreements and partnerships. The Deutsche Telekom subsidiary is
working with BMW and Sixt to bring hotspots to the car from this summer and,
for Daimler, it is developing the communications infrastructure for online
services in the car.

External revenues remained almost stable at EUR1.6 billion in what was a
difficult competitive environment characterized by price pressure. By
contrast, in the Telekom IT unit, which comprises the Group's internal IT
business in Germany, revenue fell as expected, falling to 25 percent below the
prior-year level due to seasonal effects. The EBIT margin of the Market Unit,
which manages Deutsche Telekom's corporate customers worldwide, increased from
minus 0.7 percent in the prior year to 0.4 percent. This is the result of
efficiency enhancement measures, as well as of improvements in numerous new
agreements from the past year.

Systems Solutions operating segment*:

                                  Q1 2013    Q1 2012   Change   FY 2012
                                 millions   millions     %     millions
                                   of EUR     of EUR             of EUR

    Order entry                     2,098      1,577    33.0      8,737
    Total revenue                   2,319      2,456    (5.6)    10,016
    Net revenue                     1,607      1,624    (1.0)     6,609
    EBIT                              (66)       (58)  (13.8)      (307)
    Adjusted EBIT                       8        (13)    n.a.       110
    Adjusted EBIT margin              0.4%      (0.5)%   0.8p       1.1%
    EBITDA                            115         97    18.6        342
    Adjusted EBITDA                   175        142    23.2        747
    Adjusted EBITDA margin            7.5%       5.8%    1.7p       7.5%
    Number of employees (average)  51,598     52,510    (1.7)    52,742

Comments on the table:

As of January1, 2013, Regional Services and Solutions (RSS) was relocated
from the Systems Solutions operating segment to the Germany operating segment
with the aim of combining the market approach.

This media information 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.
They should therefore be considered 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, business combinations, and our network upgrade and
expansion initiatives. In addition, stronger than expected competition,
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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
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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
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offer no assurance that our estimates or expectations will be achieved.
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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,
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Deutsche Telekom AG Corporate Communications Tel.: +49-(0)228-181-49 49
E-mail:  media@telekom.de

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