9M 10 Interim Group Report. January 1 to September 30, 2010.

3 Contents To our shareholders 4 6 7 8 Developments in the Group The T-Share Corporate governance Highlights in the third quarter of 2010 Interim Group management report 10 The economic environment 42 Risks and opportunities 12 Group strategy and Group management 44 Events after the reporting period 15 Development of business in the Group 45 Development of revenue and profits 23 Development of business in the operating segments Interim consolidated financial statements 49 Consolidated statement of financial position 55 Selected explanatory notes 50 Consolidated income statement Review report 51 Consolidated statement of comprehensive income 71 Review report 52 Consolidated statement of changes in equity 54 Consolidated statement of cash flows Additional information 72 Reconciliation of pro forma figures 76 Financial calendar 77 Glossary 80 Disclaimer

To our shareholders 5 Net debt (billions of €) 40.9 43.7 Dec. 31, 2009 Sept. 30, 2010 Net profit (billions of €) n Net debt increased by 6.9 percent compared with the end of 2009. n This increase was attributable to dividend payments of EUR 4.0 billion, pay- ments of EUR 1.3 billion for the acquisition of spectrum, exchange rate effects of EUR 0.8 billion, and effects from corporate transactions totaling EUR 1.6 billion (with the deconsolidation of T-Mobile UK accounting for EUR 0.4 billion, the financ- ing of the Everything Everywhere joint venture for EUR 0.8 billion and the acquisi- tion of STRATO for EUR 0.3 billion). n Free cash flow of EUR 4.8 billion offset these measures. 2.3 n Net profit increased by EUR 1.9 billion year-on-year in the first nine months and by 7.9 percent compared with the third quarter of the prior year. n Depreciation, amortization, and impairment losses (including goodwill impairment) decreased by EUR 2.4 billion; loss from financial activities reduced by EUR 0.5 bil- lion. n Income tax expense decreased by EUR 0.2 billion; decline in share of non-control - ling interests in profit. 0.4 n Earnings per share increased by EUR 0.44 to EUR 0.52. Q1 — Q3 2009 Q1 — Q3 2010 n Adjusted net profit increased by 7.6 percent to EUR 2.7 billion. Shareholders’ equity (billions of €) 41.9 43.4 n Shareholders’ equity increased by EUR 1.4 billion compared with the end of 2009. n Positive effects from currency translation (EUR 3.4 billion) and profit (EUR 2.5 billion). n Negative effects from dividend payments (EUR 4.0 billion) and other expenses and income recognized directly in equity (EUR 0.5 billion). Dec. 31, 2009 Sept. 30, 2010 Equity ratio (%) 32.8 33.9 n Total assets remained almost unchanged compared with the end of the prior year (EUR 127.8 billion). n Increase of 3.4 percent in shareholders’ equity. n This resulted in an improvement in the equity ratio. Dec. 31, 2009 Sept. 30, 2010 For a more detailed explanation, please refer to the section “Development of business in the Group” in the interim Group management report.

To our shareholders 7 The text of the Declaration of Conformity can be found on the Deutsche Telekom website (www.telekom.com) under Investor Relations in the Corporate Governance section. Corporate governance. The Supervisory Board and Board of Management of Deutsche Telekom AG declared on January 5, 2010 that, in the period since submission of the most recent declaration of conformity pursuant to § 161 of the German Stock Cor- poration Act on August 28, 2009, Deutsche Telekom AG has complied with the recommendations of the Government Commission of the German Corporate Governance Code, published by the Federal Ministry of Justice on August 5, 2009 in the official section of the electronic Federal Gazette (elektronischer Bundesanzeiger), without exception. The Supervisory Board and Board of Management of Deutsche Telekom AG declared further on January 5, 2010 that Deutsche Telekom AG complies with the recommendations of the Government Commission of the German Cor porate Governance Code, published by the Federal Ministry of Justice in the official section of the electronic Federal Gazette (Bundesanzeiger) on August 5, 2009, without exception.

To our shareholders 9 t-online.de Shop named best online store by testsieger.de. Deutsche Telekom’s online store www.t-online.de/shop was awarded the best overall score of 1.9 and named as test winner in the 2010 Home Appliance Retailers survey by the Internet portal testsieger.de. This award confirms the store’s leading position among the well-known e-commerce providers in Germany. Investors. Deutsche Telekom included again in Dow Jones Sustainability Index (DJSI). Deutsche Telekom qualified again this year for the most renowned sustain- ability indexes, the Dow Jones Sustainability Index World and Dow Jones Sustainability Index Europe. Only the top 10 percent of companies in a sector are included in the indexes and thus recommended to sustainability-oriented investors and fund managers as top investments. Connected life and work. Smart metering solutions. Deutsche Telekom has equipped a new housing de- velopment with the infrastructure for intelligent gas and electricity meters (smart metering) on behalf of the city of Emden’s municipal utilities. The Group pro- vides the data link, the installation of communications boxes in the 100 house- holds, and the transmission of the data to the municipal utilities via DSL. Going forward, this will provide the utilities’ customers with information on their con- sumption on a secure Internet portal. HomeNetwork 2.0 in T-City. The HomeNetwork 2.0 pilot project was launched in July 2010. This network solution can connect different electrical household devices, track and control them centrally wherever the homeowners are. A total of 50 selected households in Friedrichshafen are testing the solution in every- day use up to the end of 2010. For Deutsche Telekom, HomeNetwork 2.0 is a key project for the “connected home.” LIGA total! now interactive. Deutsche Telekom presented a personalized soc cer coverage function in time for the 2010/2011 Bundesliga season. Sub- scribers can now choose between standard coverage with live reports from all matches taking place at the same time and personalized coverage con- sisting of live broadcasts they themselves can select from all matches. “Mobile wallet” in Bulgaria. A new service in Bulgaria lets mobile communica- tions customers use their mobile phone as a mobile wallet, not only giving them full access to their bank account, but also allowing them pay for their purchases in selected stores. Customer service / Awards. Deutsche Telekom has “mobile network of the year.” Deutsche Telekom ranked first in three categories in the largest mobile network test in Germany by the specialist Internet portal CHIP Online. The Company was named the overall winner and also took first place in the categories “voice” and “mobile Internet.” The judges were particularly impressed by Deutsche Telekom’s data transmission. According to consumer organization Stiftung Warentest, Entertain offers best picture quality. Between June and August 2010, Stiftung Warentest com- pared the Deutsche Telekom TV service with satellite, cable, and DVBT ser- vices, and also with the services of one other IPTV provider. Entertain came out on top for standard-definition picture quality with a score of 1.8. The highest score of 1.0 was awarded for its HD-quality TV pictures. Digital video recorders recorded program excerpts from various stations, then experts assessed image and sound quality.

Interim Group management report 11 Regulatory order on unbundled local loop lines (ULLs). In September 2010, the Federal Network Agency issued a consultation draft for the regulatory order on unbundled local loop lines. As regards completely unbundled access to ULLs, the draft contains essentially the same obligations as the 2007 regula- tory order on ULLs. The obligation to provide access to the cable duct remains in force as a supplementary requirement to the ULL. In accordance with the Federal Administrative Court’s appeal ruling in January 2010, the obligation to provide access to dark fiber will be re-imposed. The Federal Network Agency has reconfirmed its consideration of dark fiber as a wholesale product subsidi- ary to the cable duct, in the event that no cable duct capacity is available. For the first time, the draft also envisages imposing an obligation to give access to Deutsche Telekom’s operation support and scheduling systems that record the technical data of the ULLs and assign technicians to switching jobs. The Federal Network Agency also intends to include future access to the ULL purely through fiber (new FTTH infrastructure for the mass market) in the current regu- latory regime. The final regulatory order will be adopted in the fourth quarter of 2010 following consultation with the European Commission. Telecommunications market. The economic growth and slight increase in consumer demand in most of Deutsche Telekom’s core markets again supported the business environment in the third quarter of 2010 without, however, being a major source of impetus. A negative or continued braking effect may appear in the countries where purchasing power is falling or not developing positively, for instance through a rise in or consistently high unemployment. Regulatory situation. Issuance of a regulatory order on bitstream access. On September 17, 2010, the Federal Network Agency issued a regulatory order on bitstream access which regulates services and rates for DSL wholesale products. The regulatory order expands regulation to include previously unregulated products such as VDSL lines, which must now be offered at regulated terms and conditions. This also applies to FTTH (fiber to the home) lines as well as Ethernet-based bit- stream access. The standard offering must now be adapted in line with the new order, with rates subject to ex-post control by the Federal Network Agency. EU Recommendation on regulated access to Next-Generation Access Net- works. On September 20, 2010, the European Commission adopted its Recom- mendation on regulated access to Next-Generation Access Networks (NGA Recommendation). The Recommendation gives guidance to national telecom- munications regulators on how they should regulate next-generation access. This applies in particular to the regulation of companies with significant market power. The Recommendation specifically contains guidance on regulating ac- cess to the wholesale physical network infrastructure for local loop and broad- band lines. Its aim is to harmonize regulatory requirements in Europe. On the whole, the European Commission essentially aims to maintain and expand existing regulation to include new fiber-based network infrastructures.

Interim Group management report 13 Build networks and processes for the gigabit society. Deutsche Telekom is forecasting a rapid increase in global data volumes in the coming years. Deutsche Telekom’s aim is therefore to continue to trans- form its operations – to increase its efficiency on the one hand and satisfy the growing demand for larger bandwidth on the other. Among the issues are fiber roll-out and the HSPA+ and LTE push, network convergence and adaptability on the basis of an all-IP concept, increased flexibility and speed in the IT factory through systematic standardization and, last but not least, the ongoing expan- sion of key enabling skills in wholesale services and retail products. Deutsche Telekom’s capital expenditure will remain at the high prior-year level to drive this transformation ahead and to increase efficiency. In Germany alone, the Company plans to invest around EUR 10 billion in infrastructure in the next three years. Connected life across all screens. Another strategic goal is the provision of innovative, non-device-specific and convergent services. The mobilization of data services and especially mobile Internet access are seen as the greatest opportunity for growth in this area. Deutsche Telekom intends to develop and market its own centralized offerings for connected life, e.g., innovative communication solutions based on users’ personal network-based address books. The Company is also positioning itself as a pioneer for digital content, offering targeted, personalized linking and distribution of media content. By making specific purchases (e.g., ClickandBuy and STRATO), Deutsche Telekom is expanding its portfolio in the high-growth Internet business. A further topic being pushed is ‘connected home.’ Entertain and Home Gateway will become hubs for media, entertainment, and home au- tomation. Deutsche Telekom’s activities in this area aim to further strengthen its position in the European TV business and make it the market leader in Germa- ny’s pay TV market. Besides its own services and solutions, Deutsche Telekom is entering into selected cooperative ventures and is positioning itself long-term as a strategic partner for key players in other sectors, e.g., as an exclusive on- line content partner or for the marketing of innovative terminal equipment such as Apple’s iPhone, and the T-Mobile G2 in the United States. Connected work with unique ICT solutions. Deutsche Telekom provides customized ICT solutions for business custom- ers and draws on the services of T-Systems in the ongoing standardization of its internal IT solutions. The continued reorganization at T-Systems will lift its profitability to industry level. T-Systems intends to increase external revenues from IT services, focusing on strong growth outside Germany. There are plans to launch innovative offerings in the field of secure B2B cloud services and rein- force T-Systems’ quality lead. Using its global infrastructure of data centers and networks, T-Systems provides unique expertise and an increasingly appealing product portfolio thanks to its service partnership with SAP. On the back of its new strategic approach, Deutsche Telekom is also positioning itself as an open partner for other sectors to exploit opportunities for growth in ICT solutions for energy, healthcare, media distribution, and the connected car. At CeBIT 2010, Continental and T-Systems presented an open, flexible, and future-proof info- tainment concept for connected cars. At E-world 2010, Deutsche Telekom also showcased an end-to-end solution for the energy market – smart metering & home management – which allows power, gas, and water consumption data to be read, processed, and presented automatically. Implementation of Group strategy. The implementation of Deutsche Telekom’s new strategy will now be pushed systematically in all five strategic action areas. Individual milestones have already been reached, such as the launch of the Everything Everywhere joint venture in the United Kingdom and the successful completion of the One Com- pany project in Germany and Slovakia. Other milestones reached include the acquisition of additional mobile communications licenses and the start of the LTE roll-out in Germany and Austria.

Interim Group management report 15 Development of business in the Group. Effects of changes in the composition of the Group. In the first nine months of 2010, the development of business was significantly impacted by changes in the composition of the Group resulting from the follow- ing situations in particular: OTE group: Hellenic Telecommunications Organization S.A. (OTE/OTE group) has been fully consolidated since February 2009 and was therefore not included in the consolidated income statement for the full first nine months of 2009. The OTE group is presented in the Europe operating segment. Everything Everywhere joint venture: On April 1, 2010, Deutsche Telekom and France Télécom S.A. completed the merger of T-Mobile UK and Orange UK into a joint venture called Everything Everywhere in which the two companies hold equal shares of 50 percent. Following the establishment of the joint venture, the assets and liabilities of T-Mobile UK have no longer been shown in the consoli- dated statement of financial position since April 1, 2010. Equally, T-Mobile UK’s income statement has no longer been included in the consolidated income statement since the same date. Instead, the joint venture is included in the con- solidated statement of financial position under investments accounted for using the equity method, while the share in the joint venture’s profit/loss is reported in the consolidated income statement under profit/loss from financial activities. The new joint venture is presented in the Europe operating segment. The following table shows the effects of the change in the composition of the Group arising from the joint venture Everything Everywhere on Deutsche Telekom’s key performance indicators. For this purpose, the proportionate share of earnings from the joint venture attributable to Deutsche Telekom since April 1, 2010 and the contributions of T-Mobile UK from the corresponding prior-year period were eliminated. Excluding T-Mobile UK Q2 2010 millions of € Q2 2009 millions of € Change % Q3 2010 millions of € Q3 2009 millions of € Change % 15,531 15,386 5,012 722 1,489 2,041 5,107 599 1,409 2,177 0.9 (1.9) 20.5 5.7 (6.2) 15,601 5,021 1,087 1,882 2,036 15,448 5,345 892 3,094 2,094 1.0 (6.1) 21.9 (39.2) (2.8) Net revenue EBITDA (adjusted for special factors) Net profit Free cash flow (before dividend payments and spectrum investment) Cash capex For a more detailed explanation of these effects of changes in the composition of the Group, please refer to the section “Selected explanatory notes” in the interim consolidated financial statements.

Interim Group management report 17 Contribution of the operating segments to net revenue (after elimination of revenue between segments). Net revenue Germany Europe United States Systems Solutions Group Headquarters & Shared Services Q1 – Q3 2010 millions of € Proportion of net revenue of the Group % Q1 – Q3 2009 millions of € Proportion of net revenue of the Group % Change millions of € Change % FY 2009 millions of € 46,944 17,509 12,433 12,135 4,697 170 100.0 37.3 26.5 25.8 10.0 0.4 48,402 17,828 14,110 11,802 4,465 197 100.0 36.8 29.2 24.4 9.2 0.4 (1,458) (319) (1,677) 333 232 (27) (3.0) (1.8) (11.9) 2.8 5.2 (13.7) 64,602 23,813 18,996 15,457 6,083 253 With 37.3 percent, the Germany operating segment provided the largest contri- bution to the net revenue of the Group. The Europe operating segment’s share of net revenue decreased by 2.7 percentage points compared with the first nine months of 2009. Following the establishment of the joint venture in the United Kingdom, T-Mobile UK was deconsolidated as of April 1, 2010, so its revenues were no longer reported in the Europe operating segment in the second and third quarters of 2010. The United States operating segment’s share of net revenue increased by 1.4 percentage points, primarily as a result of exchange rate effects. The contributions of the other operating segments to net revenue remained almost constant. The proportion of net revenue generated internationally remained almost un- changed year-on-year. Both domestic and international net revenue decreased. While changes in the composition of the Group largely had a negative impact in Europe (excluding Germany), revenue in North America increased, mainly due to exchange rate effects. EBITDA. In the first three quarters of 2010, Deutsche Telekom generated EBITDA of EUR 13.9 billion, 9.3 percent lower than in the same period in 2009. Breakdown of revenue by regions in percent. Adjusted EBITDA. 1.1 26.0 29.7 43.2 Germany Europe (excl. Germany) North America Other countries In the reporting period, EBITDA was negatively impacted by special factors totaling EUR 1.0 billion. In addition to costs of EUR 0.4 billion from the decon- so lidation of T-Mobile UK in connection with the establishment of the joint venture in the United Kingdom, these factors primarily related to expenses totaling EUR 0.4 billion for staff-related measures. Other special factors includ- ed expenses of EUR 0.1 billion for non-staff-related restructuring and expenses of EUR 0.1 billion for the write-off of receivables from the German Main Cus- toms Office for the years 2005 to 2009. In the first nine months of 2009, special factors of EUR 0.2 billion – mainly as a result of expenses for staff-related measures and non-staff-related restructuring – had a negative effect on EBITDA.

Interim Group management report 19 EBIT in Deutsche Telekom’ s operating segments developed as follows: Q1 2010 millions of € Q2 2010 millions of € Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € Profit (loss) from operations (EBIT) of the Group Germany Europe United States Systems Solutions Group Headquarters & Shared Services Reconciliation 2,029 1,171 675 544 18 (365) (14) 1,711 1,327 166 600 56 (426) (12) 1,941 1,370 622 476 (25) (462) (40) 2,498 1,409 821 595 16 (311) (32) (22.3) (2.8) (24.2) (20.0) n.a. (48.6) (25.0) 5,681 3,868 1,463 1,620 49 (1,253) (66) 4,754 4,008 2 1,779 54 (964) (125) 19.5 (3.5) n.a. (8.9) (9.3) (30.0) 47.2 6,012 5,062 140 2,233 (11) (1,249) (163) Profit/loss before income taxes. Net profit. Profit before income taxes increased by EUR 1.5 billion year-on-year in the first nine months of 2010. Since the Group’s consolidated loss from financial activi- ties was reduced by EUR 0.5 billion over with the prior-year period, profit before income taxes increased to a greater extent than EBIT of the Group, largely due to an improvement of EUR 0.6 billion in other financial expense. This increase is mainly a result of positive effects from hedging relationships for financing in foreign currencies and for the purpose of interest management. Positive effects also resulted from the year-on-year reduction in expenses for the measurement of provisions and liabilities (interest component). In the first nine months of 2010, Deutsche Telekom’s net profit increased by EUR 1.9 billion compared with the same period in the prior year. A decrease of EUR 0.2 billion in income tax expense is mainly attributable to the fact that de- ferred taxes of EUR 0.3 billion were recognized on temporary differences and loss carryforwards in Europe in the third quarter of 2010 since it has become likely that these temporary differences and loss carryforwards will be used in the future. The reduction of EUR 0.2 billion in non-controlling interests in profit also had a positive impact on net profit.

Interim Group management report 21 Current and non-current financial liabilities decreased by EUR 1.0 billion compared with the end of 2009. For more information, please refer to the table below and the accompanying explanations. Other liabilities (current and non-current) increased by EUR 1.3 billion, mainly on account of higher deferred revenue compared with the end of 2009 and an intraperiod increase in VAT liabilities. Shareholders’ equity increased by EUR 1.4 billion to EUR 43.4 billion. This development is attributable to the increase in other comprehensive income of EUR 2.9 billion (mainly from the currency translation of foreign operations) and the profit of EUR 2.5 billion. Dividend payments by Deutsche Telekom had an offsetting effect of EUR 4.0 billion. Reconciliation of gross debt. Financial liabilities (current) Financial liabilities (non-current) Financial liabilities Accrued interest Liabilities from corporate transactions Other Gross debt Net debt. Bonds Liabilities to banks Liabilities to non-banks from promissory notes Derivative financial liabilities Lease liabilities Other financial liabilities Gross debt Cash and cash equivalents Available-for-sale/held-for-trading financial assets Derivative financial assets Other financial assets Net debt Sept. 30, 2010 millions of € Dec. 31, 2009 millions of € Change millions of € Change % Sept. 30, 2009 millions of € 11,014 39,159 50,173 (954) (1,161) (612) 47,446 9,391 41,800 51,191 (1,175) (1,455) (444) 48,117 1,623 (2,641) (1,018) 221 294 (168) (671) 17.3 (6.3) (2.0) 18.8 20.2 (37.8) (1.4) 11,449 42,018 53,467 (1,018) (1,515) (461) 50,473 Sept. 30, 2010 millions of € Dec. 31, 2009 millions of € Change millions of € Change % Sept. 30, 2009 millions of € 38,138 38,508 3,952 1,151 789 1,904 1,512 47,446 2,074 52 1,100 473 43,747 4,718 1,057 924 1,909 1,001 48,117 5,022 162 1,048 974 40,911 (370) (766) 94 (135) (5) 511 (671) (2,948) (110) 52 (501) 2,836 (1.0) (16.2) 8.9 (14.6) (0.3) 51.0 (1.4) (58.7) (67.9) 5.0 (51.4) 6.9 40,572 4,617 1,037 1,066 1,943 1,238 50,473 6,080 249 1,192 563 42,389

Interim Group management report 23 Development of business in the operating segments. Germany. Customer development. Fixed-network lines (’000) IPTV (’000) 26,653 26,236 25,864 25,549 25,024 1,042 971 896 806 678 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Retail broadband lines (’000) Mobile customers (’000)2 11,301 11,477 11,665 11,795 11,844 39,330 39,136 38,544 36,976 34,882 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 2 Deregistration of inactive prepay customers’ cards: 4.4 million in FY 2009, 1.5 million in Q1 2010, 2.5 million in Q2 2010, 3.1 million in Q3 2010. On April 1, 2010, Telekom Deutschland GmbH began to automatically terminate prepaid cards that have not been topped up for two years and have been inactive for three months.

Interim Group management report 25 Development of operations. Q1 2010 millions of € Q2 2010 millions of € Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € Total revenue Fixed network Mobile communications Profit from operations (EBIT) EBIT margin (%) 6,189 4,530 2,000 1,171 18.9 6,197 4,496 2,054 1,327 21.4 6,317 4,509 2,157 1,370 21.7 6,471 4,711 2,109 1,409 21.8 Depreciation, amortization and impairment losses (1,014) (1,030) (1,035) (1,037) EBITDA Special factors affecting EBITDA EBITDA (adjusted for special factors) Fixed network Mobile communications EBITDA margin (adjusted for special factors) (%) Fixed network (%) Mobile communications (%) 2,185 (114) 2,299 1,468 828 37.1 32.4 41.4 2,357 (81) 2,438 1,530 912 39.3 34.0 44.4 2,405 (118) 2,523 1,595 928 39.9 35.4 43.0 2,446 (77) 2,523 1,604 920 39.0 34.0 43.6 (2.4) (4.3) 2.3 (2.8) 0.2 (1.7) (53.2) 0.0 (0.6) 0.9 18,703 13,535 6,211 3,868 20.7 19,022 14,063 6,008 4,008 21.1 (3,079) (3,138) 6,947 (313) 7,260 4,593 2,668 38.8 33.9 43.0 7,146 (121) 7,267 4,795 2,479 38.2 34.1 41.3 (1.7) (3.8) 3.4 (3.5) 1.9 (2.8) n.a. (0.1) (4.2) 7.6 25,423 18,736 8,109 5,062 19.9 (4,196) 9,258 (349) 9,607 6,247 3,373 37.7 33.3 41.6 Cash capex (651) (774) (862) (771) (11.8) (2,287) (2,255) (1.4) (3,158) Employees (average) (Number) Fixed network (Number) Mobile communications (Number) 80,729 74,893 5,836 79,729 73,961 5,768 79,318 73,605 5,713 84,369 78,251 6,118 (6.0) (5.9) (6.6) 79,925 74,153 5,772 85,199 79,130 6,069 (6.2) (6.3) (4.9) 84,584 78,507 6,077 The figures for fixed-network and mobile communications generally show the unconsolidated view, and do not take consolidation effects at operating segment level into consideration. Mobile communications. In the first three quarters of 2010, total revenue from mobile operations increased by 3.4 percent year-on-year to EUR 6.2 billion, an improvement compared with the same period of 2009, when mobile communi- cations revenue decreased by 0.9 percent. This success was largely due to the positive trend in service and data revenues. The increase was offset by lower mobile termination charges from April 1, 2009, the EU roaming regulation effec- tive July 1, 2009 and 2010, and the expiry of the national roaming agreements with O 2 at the end of 2009. Total revenue. Total revenue in the Germany operating segment decreased in the first three quarters of 2010 to EUR 18.7 billion, down 1.7 percent in the reporting period, as compared with a decrease of 3.9 percent – more than twice as much – in the same period in 2009. The revenue decrease was mainly caused by the continu- ing losses of fixed-network lines due to competition and by regulatory pricing measures. Fixed network. Total revenue in the first nine months of 2010 decreased by 3.8 percent year-on-year to EUR 13.5 billion, a less marked decline than in the same period of 2009 which saw revenue decrease by 4.9 percent. Continu- ing line losses resulting from increased competition and falling usage-related charges were the main factors. The first-time consolidation of STRATO and ClickandBuy and growth in the number of unbundled local loop lines had a positive effect on revenue but only partly compensated for the decline in ac- cess revenue.

Interim Group management report 27 Europe. Customer development. Fixed-network lines (’000) IPTV (’000) 12,480 12,268 11,990 11,736 11,524 571 515 475 425 339 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Retail broadband lines (’000) Mobile customers (’000) 3,681 3,881 4,010 4,078 4,185 61,512 61,577 60,811 60,507 60,373 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010 Sept. 30, 2009 Dec. 31, 2009 Mar. 31, 2010 June 30, 2010 Sept. 30, 2010

Interim Group management report 29 Total. During the first three quarters of 2010, the Europe operating segment registered a further decrease in the number of customers using fixed-network lines compared with the end of 2009. This, however, was offset to some extent by encouraging growth in retail broadband lines and the innovative IPTV busi- ness. The mobile communications business developed well despite intense competition in the individual countries and served a customer base of 60.4 mil- lion customers as of September 30, 2010, down just slightly on the year before. Fixed network. The traditional fixed-network business had 11.5 million lines as of September 30, 2010, a decrease of 6.5 percent compared with the end of 2009. Nevertheless, line losses slowed markedly in recent quarters. The major growth markets of the future are in the broadband sector, however. In the first nine months of the current financial year, the number of broadband lines, including bundled and unbundled wholesale lines, increased by 0.3 million compared with the end of 2009 to 4.4 million. All countries in the Europe seg- ment contributed to this result. The positive trend in the European broadband market was also fueled by the successful marketing of IPTV, with the number of customers increasing by 34 percent since the end of 2009. Croatia and Slova- kia were the principal drivers of this growth. The strategic focus on broadband and TV with offerings of innovative products is evident, for example, in the launch of quad-play packages in a number of European countries. Mobile communications. The mobile communications business of the Europe operating segment in the first three quarters of 2010 was marked by intense competition and a strained economic situation, especially in Eastern Europe. The total customer base in the Europe segment contracted slightly by 1.9 per- cent compared with the end of 2009. Particularly Greece, Romania, Poland, and the Netherlands recorded lower customer figures, though this was offset by some growth in the total customer base in Austria. The other countries in the segment maintained their positions in their hard-fought markets and posted stable customer figures. The decrease in the total customer base is mainly attributable to the prepay segment. In Greece, Poland, the Netherlands, and Romania in particular, the number of prepay customers decreased by almost 2.0 million in total, with the decline in the Netherlands and Poland being due to the focus on the high-value contract customer business. Furthermore, due to the deregistration of inactive prepay customers, the prepay customer bases in the Netherlands and Romania decreased compared with the end of 2009. In Greece, prepay customer figures were negatively impacted by the new registra- tion requirements introduced in November 2009. The high-value contract customer business continued to drive growth in the Europe segment in the first nine months of the current financial year. Almost all European companies except for those in Romania and Montenegro expanded their contract customer base. The Netherlands, Poland, and Hungary mainly accounted for this growth with around 0.5 million net additions between them. This positive trend is also reflected in the proportion of the total customer base in the Europe segment that is accounted for by contract customers, which has grown by 2.2 percentage points since the end of 2009 to 43.2 percent. All countries except Austria contributed to this positive result. This success is due to the successful focus on the acquisition and retention specifically of premium contract customers through the marketing of calling plans with minute buckets, flat-rate plans, and new hardware in conjunction with fixed-term contracts. In addition, innovative mobile Internet data and con- tent services on the latest cell phones – part of the connected life and work strategy – successfully attracted new groups of customers. The effective mar- keting of smartphones like the Apple iPhone 4, which is now available in nearly all European markets, accounted for a significant percentage of growth in the contract customer base.

Interim Group management report 31 Total revenue. Total revenue in the Europe operating segment decreased by 11.3 percent year- on-year to EUR 12.9 billion in the first nine months of 2010. The net decline is primarily the result of two offsetting effects. On the one hand, segment revenue was reduced by the deconsolidation of T-Mobile UK effective April 1, 2010. On the other, the change in the composition of the Group resulting from the full consolidation of the OTE group in February 2009 had a positive effect on the revenue trend. In addition, positive exchange rate effects attributable in par- ticular to the translation from Polish zlotys, Czech korunas, Hungarian forints, pounds sterling, and Croatian kunas improved the segment’s total revenue. Adjusted for these factors, total revenue narrowed by just 4.9 percent, primarily due to cuts in mobile termination charges imposed by the regulatory authori- ties in most countries and intense competition on the mobile communications and fixed-network markets. Total revenue was also adversely affected by the strained macroeconomic situation in Eastern European countries in particular, as well as by a tax on mobile services in Croatia. The OTE group was impacted considerably by these factors, as nearly half of the decrease in segment rev- enue was recorded by the national companies that form part of this group. Greece. In Greece, revenue generated in the first three quarters of the current financial year increased 5 percent year-on-year to EUR 2.9 billion. Adjusted for the effects of changes in the composition of the Group attributable to the Greek OTE group, a revenue shortfall of 7.8 percent was recorded, with the fixed-network and mobile communications businesses affected in approxi- mately equal measure. The decline in fixed-network revenue was mainly due to a downturn in the traditional fixed-network business, the negative effects of which were not entirely offset by the positive development in broadband and wholesale revenues. Mobile revenue, on the other hand, was impacted by the cuts in termination charges and, in particular, by intense price competition. The loss of customers in the prepay segment caused by the prepay registration requirements put further pressure on revenue. Romania. Romania recorded the strongest growth in the Europe segment. Revenue increased 10.4 percent year-on-year in the first nine months of 2010, mainly due to the positive effect of changes in the composition of the Group at- tributable to the Romanian operations of the OTE group. Revenue in the fixed- network business decreased due to the difficult economic situation and intense price pressure on the Romanian telecommunications market. Net customer ad- ditions in the broadband and TV business only partly offset the adverse effects of the revenue decline in the traditional fixed-network business. Revenue in the mobile business increased slightly due to a higher share of contract customers in the total customer base. Hungary. Revenue in Hungary declined by 3.7 percent in the first nine months of the current financial year to EUR 1.2 billion. The strength of the Hungarian forint against the euro did not fully compensate for the revenue shortfall, which was largely attributable to the general economic situation. The macroeconomic situation affected the fixed-network business to a greater extent than mobile communications, though the number of customers with broadband lines in- creased. The mobile business was primarily impacted by the decline in ser- vice revenues, which in turn was substantially due to lower mobile termina- tion charges. Poland. Driven by the positive exchange rate effects of the Polish zloty against the euro, revenue at PTC increased 4.4 percent, compensating for the decline in operating revenues attributable in particular to lower service revenues. The revenue losses in voice telephony, primarily on account of the further reduc- tion in average minute prices, was only partially offset by higher non-voice revenues. Czech Republic. At T-Mobile CZ, revenue in the first three quarters of 2010 decreased by 3.6 percent year-on-year to EUR 0.9 billion. Adjusted for positive exchange rate effects of the Czech koruna against the euro, revenue decreased by 7.7 percent, primarily driven by a year-on-year decline in service revenues which in turn was largely attributable to a positive one-time effect in the second quarter of 2009. In addition, lower termination charges as a result of regulatory price cuts negatively impacted revenue. These effects were compensated in part by fixed-network revenue resulting from the acquisition of the retail busi- ness of České Radiokomunikace in December 2009. Croatia. In the first nine months of 2010, the national company in Croatia recorded a minor decrease in revenue compared with the prior-year period. Positive exchange rate effects from a strong Croatian kuna only absorbed part of the decline in operating revenue, which was primarily a consequence of the economic situation, though mobile operations were impacted more strongly than the fixed network. In the mobile business, service revenues declined owing to a decrease in the mobile customer base and the tax on mobile services intro- duced in August 2009. The encouraging broadband and TV revenues coupled with the first-time consolidation of the ICT subsidiary in January 2010 did not fully compensate for the decline in the traditional fixed-network business.

Interim Group management report 33 Cash capex. Cash capex in the Europe operating segment decreased by EUR 0.4 billion or 22.7 percent year-on-year in the first nine months of 2010 in spite of changes in the composition of the Group attributable to the OTE group. The deconsolida- tion of T-Mobile UK also contributed to lower cash capex figures. Several coun- tries reacted to the current market situation with investment restraint. Personnel. Average headcount in the Europe operating segment declined year-on-year in the first nine months of the current financial year. The expansion of the work- force following the first-time full consolidation of the OTE group in early Febru- ary 2009 was partially offset by the deconsolidation of T-Mobile UK effective April 1, 2010. The successful implementation of downsizing programs as part of efficiency enhancement measures in several countries also reduced the aver- age headcount. By contrast, some smaller-scale company acquisitions added to the headcount. Croatia. In Croatia, adjusted EBITDA decreased 4.8 percent to EUR 0.4 billion, mainly attributable to mobile operations. The decrease in mobile revenue had a negative impact on EBITDA. In the fixed-network business, cost reductions helped offset the decline in revenue to a considerable extent. Netherlands. In the first nine months of the current financial year, T-Mobile Netherlands recorded a significant year-on-year increase in adjusted EBITDA attributable to lower customer acquisition costs as well as to a one-time effect in the second quarter of 2010. As a result of the integration of Orange, which has now been completed, overhead costs also decreased substantially against the previous year. Slovakia. In Slovakia, adjusted EBITDA declined, due in particular to negative revenue effects in the mobile business that were only partly offset by lower sell- ing costs. By contrast, adjusted EBITDA in the fixed-network business declined slightly. Austria. Deutsche Telekom reported an increase in adjusted EBITDA in Austria during the first nine months of the current financial year. This improvement is largely attributable to lower overheads as well as to a one-time effect in the first quarter of 2010, two factors which more than compensated for the negative revenue effects. EBIT. EBIT in the Europe operating segment increased to EUR 1.5 billion in the first three quarters of the year, mainly attributable to a EUR 1.8 billion impairment loss on the goodwill of the cash generating unit T-Mobile UK that was recorded in the first quarter of 2009. The classification of T-Mobile UK as held for sale between September 2009 and March 2010 and the resulting non-recognition of depreciation and amortization also improved EBIT. These effects more than offset the decrease in EBITDA.

Interim Group management report 35 2010 and additions of 63,000 in the third quarter of 2009. This increase in net prepaid customer additions in the third quarter of 2010 was related primarily to strong MVNO net customer additions in the quarter. At September 30, 2010, the operating segment had 2.4 million MVNO customers. T-Mobile USA’s blended churn rate was 3.4 percent per month in the third quar- ter of 2010, consistent with the second quarter of 2010 and third quarter of 2009. Blended churn was stable in the third quarter of 2010 as higher con- tract churn was offset by lower prepaid customer churn related to improve- ments in traditional prepaid churn during the quarter. Contract customer churn increased to 2.4 percent per month in the third quarter of 2010 from 2.2 percent per month in the second quarter of 2010 due primarily to impacts from competi- tive product launches, but was consistent with the third quarter of 2009. Development of operations. Total revenue 3,814 4,188 4,143 3,758 10.2 12,145 11,813 2.8 15,471 Q1 2010 millions of € Q2 2010 millions of € Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € Profit from operations (EBIT) EBIT margin (%) Depreciation, amortization and impairment losses EBITDA Special factors affecting EBITDA EBITDA (adjusted for special factors) EBITDA margin (adjusted for special factors) (%) 544 14.3 (464) 1,008 - 1,008 26.4 600 14.3 (520) 1,120 - 1,120 26.7 476 11.5 (552) 1,028 - 1,028 24.8 595 15.8 (494) 1,089 - 1,089 29.0 (20.0) (11.7) (5.6) . (5.6) 1,620 13.3 1,779 15.1 (1,536) 3,156 - 3,156 26.0 (1,547) 3,326 - 3,326 28.2 (8.9) 0.7 (5.1) (5.1) 2,233 14.4 (2,028) 4,261 - 4,261 27.5 Cash capex (481) (534) (496) (552) 10.1 (1,511) (2,202) 31.4 (2,666) Employees (average) (Number) 38,663 37,612 37,563 37,996 (1.1) 37,946 37,859 0.2 38,231 Total revenue. Revenue from the United States operating segment (T-Mobile USA) was slightly higher year-on-year at EUR 12.1 billion in the first nine months of 2010 com- pared to EUR 11.8 billion in the first nine months of 2009 as a result of currency fluctuations. In U.S. dollars, revenues of the operating segment decreased by 1.0 percent year-on-year for the first three quarter period. The main factor driv- ing the decrease in revenue in local currency was a decline in branded custom- ers (wireless customers excluding MVNO and connected devices) causing voice revenues to decline. Customers converting to unlimited rate plans which incur lower variable voice charges also caused decreases in voice revenues year-on- year. Partially offsetting declines in voice revenues, equipment and data rev- enues from customers purchasing smartphones and mobile broadband data plans increased during the first nine months of 2010. The number of customers using smartphones (which include UMTS/HSPA/HSPA+ enabled smartphones) more than doubled to 7.2 million at the end of the third quarter of 2010 from 2.8 million at the end of the third quarter of 2009. Compared to the second quarter of 2010, revenue decreased slightly in the third quarter of 2010 as a result of currency fluctuations. In U.S. dollars, rev- enues of the operating segment increased by 0.5 percent sequentially due to data revenue growth and an increase in equipment revenue that was driven by customers adopting smartphones and mobile broadband data plans. This sequential revenue growth was partially offset by declines in voice revenue.

Interim Group management report 37 Systems Solutions. Selected KPIs. New orders (millions of €) Revenue (millions of €) 3,291 2,156 2,294 2,388 2,125 2,131 2,242 2,205 1,689 1,625 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Adjusted EBIT (millions of €) 73 76 73 64 47 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Sept. 30, 2010 June 30, 2010 Change Sept. 30, 2010/ June 30, 2010 % Dec. 31, 2009 Change Sept. 30, 2010/ Dec. 31, 2009 % Sept. 30, 2009 Change Sept. 30, 2010/ Sept. 30, 2009 % New orders (millions of €) 6,075 4,450 Computing & Desktop Services Number of servers managed and serviced (units) 58,498 48,564 Number of workstations managed and serviced (millions) Systems Integration Hours billed (millions) Utilization rate (%) 1.96 6.9 83.1 1.96 4.7 82.4 n.a. 20.5 0.0 n.a. 0.7p 9,305 47,092 1.86 9.6 81.3 n.a. 24.2 5.4 n.a. 1.8p 6,014 47,485 1.50 7.2 80.9 1.0 23.2 30.7 (4.2) 2.2p

Interim Group management report 39 Total revenue. EBIT, adjusted EBIT. Total revenue in the Systems Solutions operating segment in the first nine months of 2010 amounted to EUR 6.6 billion, a year-on-year increase of 2.6 percent, reflecting the many deals concluded this year and in the prior year. The new deals offset the general negative price trend in IT and communications. Revenue generated with Deutsche Telekom’s other operating segments amounted to EUR 1.9 billion in the reporting period, a decrease of 3.3 per- cent. As a service provider for Deutsche Telekom, T-Systems plays a key role in optimizing Deutsche Telekom’s IT costs. T-Systems standardized and im- proved the IT environment for the Group, making a major contribution to the Save for Service program. Net revenue. Business with customers outside the Deutsche Telekom Group expanded substantially, which reflects T-Systems’ new growth course. The operating segment generated net revenue of EUR 4.7 billion, a year-on-year increase of 5.2 percent, which was mainly attributable to Computing & Desktop Services. Many customers are already using what are known as cloud services, which is how we already provide two thirds of SAP services for our customers. Cloud services enable companies, such as Philips, to receive services on demand and pay only for what they have used. EBITDA, adjusted EBITDA. In the reporting period, the Systems Solutions operating segment generated EBITDA of EUR 0.5 billion, a decrease of 11.6 percent compared with the prior- year period. This decline was mainly attributable to increased costs for goods and services purchased as a result of the new deals. It was partially offset by savings under Save for Service, the Company’s comprehensive restructuring and efficiency enhancement program. EBITDA was negatively affected by spe- cial factors totaling EUR 0.1 billion, largely arising from restructuring measures. Adjusted EBITDA totaled EUR 0.6 billion in the reporting period, a decrease of 3.6 percent. Adjusted EBIT increased compared with the prior-year period, also as a result of Save for Service, the comprehensive restructuring and efficiency enhance- ment program. Adjusted EBIT was also positively affected by lower deprecia- tion and amortization due to longer and therefore optimized useful lives of several assets. The adjusted EBIT margin increased from 2.4 percent in the first nine months of 2009 to 3.0 percent. Cash capex. At EUR 0.6 billion, cash capex in the reporting period increased year-on-year. Apart from expanding its dynamic computing platform, T-Systems invested in new deals and customer relationships in 2010. Positive effects of the efficiency enhancement measures, e.g., more standardized ICT platforms, were partially offset by the addition of assets taken on under the new deals. Personnel. The average number of employees increased by 2,464 in the first nine months of 2010 to 47,527, a year-on-year increase of 5.5 percent. While the average number of employees in Germany decreased by 556 or 2.2 percent to 25,072, internationally the average number of employees increased by 3,020 or 15.5 per- cent. This reflects the staff restructuring measures in Germany, in particular at Systems Integration, as well as offshoring at Computing & Desktop Services. This was primarily due to the fact that employees were taken over under the terms of large-scale contracts and to the increased use of company emplo yees from nearshore and offshore countries.

Interim Group management report 41 Total revenue. EBIT. Total revenue generated at Group Headquarters & Shared Services decreased by 5.9 percent in the first nine months of the 2010 financial year, mainly due to lower prices in the Group-wide technical functions and volume-driven decreases in revenue from call center services at Vivento. Lower revenue at DeTeFleet Ser- vices GmbH, primarily due to a decline in proceeds from vehicle sales and a lower average number of fleet vehicles, also had an impact. Loss from operations (EBIT) increased by EUR 289 million compared with the prior-year period. The decrease in adjusted EBITDA and the increase in special factors had a negative impact, which was partially offset by lower depreciation, amortization, and impairment losses primarily relating to Deutsche Telekom AG’s real estate portfolio. Personnel. The average number of employees during the reporting period was 22,339. The increase by 2,369 was primarily attributable to a headcount increase at Vivento and the integration of staff employed at the units integrated into Group Headquarters & Shared Services as part of the Group-wide realignment of the management structure. EBITDA, adjusted EBITDA. Adjusted EBITDA at Group Headquarters & Shared Services decreased signifi- cantly year-on-year in the reporting period, mainly due to higher income recog- nized in the prior year from the reclassification of real estate from assets held for sale to non-current assets. The headcount increase at Vivento and the de- crease in the billing of technical functions also had a negative impact on ad- justed EBITDA at Group Headquarters & Shared Services. Overall, EBITDA was negatively impacted by special factors of EUR 107 million in the reporting period, mainly involving expenses in connection with staff-related measures. In the first nine months of 2009, special factors of EUR 12 million had a nega- tive effect on EBITDA.

Interim Group management report 43 ULL rate approvals. Economic situation in Greece. On June 23, 2010, the Federal Administrative Court upheld an appeal relating to the ULL monthly charges for 2001 against the ruling of the Cologne Admini- strative Court on August 29, 2009 on the complaints against non-allowance of appeal filed by Deutsche Telekom AG and the Federal Network Agency; the Federal Administrative Court rejected the complaint against non-allowance of appeal relating to the ULL one-time charges for the period April 2001 through March 2002. The ruling of the Administrative Court on August 27, 2009 revok- ing the approvals thus became legally effective with regard to the ruling on the ULL one-time charges. Furthermore, on June 30, 2010 the Federal Administra- tive Court dismissed the complaints against non-allowance of appeal filed by Deutsche Telekom AG and the Federal Network Agency against the ruling by the Cologne Administrative Court on November 19, 2009 relating to the ULL one-time charges for the period April 2002 through June 2003. The ruling of the Administrative Court on November 19, 2009 revoking the approvals thus became legally effective. As a result, the Federal Network Agency has to decide again on the ULL one-time charges for the periods April 2001 through March 2002 and April 2002 through June 2003. The economic downturn in Greece is continuing. Cuts in tax policy and govern- ment spending are impacting on economic development. Rising unemployment, falling incomes and general uncertainty are negatively affecting private consump- tion. Further cuts in government spending and weak private consumption may continue to negatively affect telecommunications consumption. Leading eco- nomic research institutions forecast an economic upswing in Greece from the fourth quarter of 2011. Ministerial Decision on IKA-ETAM social security fund. The Greek Ministry of Labor and Social Affairs issued a Ministerial Decision and informed OTE that it may, subject to an audit, be required to make addition- al payments to cover a deficit in the fund. According to the Ministry, a voluntary staff reduction program at OTE has resulted in a gap of EUR 0.3 billion. OTE has appealed the Ministerial Decision. Minimum contract terms for bundled products. The complaint filed by Tele2 as reported in the Group management report for the 2009 financial year was withdrawn by Tele2 in the second quarter of 2010. Proceedings by Anti-Monopoly Commission in Poland. Lawsuit on prospectus liability. The hearing in the DT3 model proceedings is scheduled for December 15, 2010. At the end of September 2010, the Polish Anti-Monopoly Commission (UOKiK) initiated legal proceedings against a number of Polish telecommunications companies suspected of illegal price fixing. Deutsche Telekom believes these allegations are unfounded. The outcome and any associated fine cannot be de- termined at present, nor is it clear how a potential fine would be set. In Poland, the maximum fine is set at 10 percent of the revenues from telecommunications services or 10 percent of taxable revenues.

Interim Group management report 45 Development of revenue and profits.4 The statements in this section reflect the current views of Deutsche Telekom’s management. Expectations of business developments are based on the oppor- tunities and risks that arise as the year progresses as a result of the conditions on the market and the competitive environment. For more information on exist- ing opportunities and risks, please also refer to the disclosures in the Annual Report as of December 31, 2009 and in this Interim Group Report. For addition- al information and recent changes in the economic situation, please refer to the section “The economic environment” in this interim Group management report. Expectations for the Group. Deutsche Telekom will focus its investment activities in 2010 and 2011 on safeguarding its competitiveness and future viability, particularly in its home market, Germany. For example, Deutsche Telekom successfully participated in the LTE frequency auction to secure spectrum for itself. At the same time, it aims to maintain a stable rating in order to have unrestricted access to the debt capital market. Deutsche Telekom expects to see unabated strong growth in the mobile Internet in the coming years, particularly in the United States and Western Europe. Deutsche Telekom currently maintains its guidance for the Group as communi- cated. Excluding the effects of the Everything Everywhere joint venture in the United Kingdom, Deutsche Telekom expects its capital expenditure in 2010 to increase slightly year-on-year to around EUR 9.1 billion, which will strengthen the Group’s position in its core markets. Adjusted for the effects of the joint venture, Deutsche Telekom aims to generate adjusted EBITDA of approxi- mately EUR 20 billion and free cash flow of around EUR 6.2 billion in the 2010 financial year. Neither the level of capital expenditure nor free cash flow in- cludes spectrum investment. The assets and liabilities of T-Mobile UK have no longer been shown in the con- solidated statement of financial position since April 1, 2010 following the estab- lishment of the joint venture in the United Kingdom. Equally, T-Mobile UK’s in- come statement has no longer been included in the consolidated income state- ment since the same date. Instead, the joint venture is included in the consoli- dated statement of financial position under investments accounted for using the equity method, while the share in the joint venture’s profit/loss is reported in the consolidated income statement under profit/loss from financial activities. These changes affect the aforementioned forecast figures. Deutsche Telekom’s capital expenditure will decrease by around EUR 0.1 billion and adjusted EBITDA by EUR 0.4 to 0.5 billion. Taking into account the agreed advance dividend from the joint venture, Deutsche Telekom does not expect to see any impact on free cash flow. In 2011, Deutsche Telekom expects sustained high levels of adjusted EBITDA and free cash flow. The Board of Management and Supervisory Board of Deutsche Telekom have decided to pursue a shareholder remuneration policy for the 2010 through 2012 financial years consisting of the payment of an annual dividend of at least EUR 0.70 per share and the buyback of shares with the remaining amount up to an unchanged total shareholder remuneration of around EUR 3.4 billion.5 These payments will be covered by free cash flow. 4 The forecasts for the development of revenue and profits contain forward-looking statements that reflect management’s current views with respect to future events. Words such as “as- sume,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “plan,” “project,” “should,” “want” and similar expressions identify forward-looking statements. These forward- looking statements include statements on the expected development of net revenue, adjusted EBITDA, capital expenditure and free cash flow until 2011. Such statements are subject to risks and uncertainties, such as an economic downturn in Europe or North America, changes in exchange and interest rates, the outcome of disputes in which Deutsche Telekom is involved, and competitive and regulatory developments. Some uncertainties or other imponderabilities that might influence Deutsche Telekom’s ability to achieve its objectives, are described in the “Risk and opportunities management” section in the management report and in the “Forward-Looking Statements” and “Risk Factors” sections in the Annual Report on Form 20-F and the disclaimer at the end of the Annual Report as well as in the section “Risks and opportunities” of this Interim Group Report. Should these or other uncertainties and imponderabilities materialize or the assumptions underlying any of these statements prove incorrect, the actual results may be materially different from those expressed or implied by such statements. We do not guarantee that our forward-looking statements will prove correct. The forward-looking statements presented here are based on the current structure of the Group, without regard to significant acquisitions, dispositions, business combinations or joint ventures Deutsche Telekom may choose to undertake. These statements are made with respect to conditions as of the date of this document’s publication. Without prejudice to existing obligations under capital market law, we do not intend or assume any obligation to update forward- looking statements. 5 This policy is subject to the requisite unappropriated net income being posted in the single-entity financial statements of Deutsche Telekom AG for the financial year in question and the ability to form the necessary reserves for the share buy-back. It is also contingent upon the executive bodies adopting resolutions to this effect taking account of the Company’s situation at the time.

Interim Group management report 47 United States. In 2010, T-Mobile USA is focusing on attracting and retaining a loyal customer base and leveraging its network investment. Revenue and adjusted EBITDA in local currency are expected to be lower in 2010 as customer penetration levels for mobile telecommunications services in the United States near 100 percent. Results are expected to be positively impacted primarily by growth in non-voice services and a continued focus on cost saving initiatives, offset by investment in customer acquisition and retention as well as market driven declines in voice revenues per customer and net losses of branded customers (wireless custom- ers excluding MVNO and connected devices). For 2011, T-Mobile USA expects positive developments in revenues and adjusted EBITDA in local currency. However, exchange rates, regulatory changes, and competitive pressures may significantly affect revenues and adjusted EBITDA in euros in 2010 and 2011. Additionally, the United States operating segment is continuing to focus on the enhancement of network quality and coverage, and in particular the continued expansion and upgrade of the mobile broadband communications networks, including the build out of the HSPA+ 4G6 network. optic infrastructure, and by building out the TV infrastructure (satellite and IP). Capital expenditure on mobile technology is also planned such as the roll-out of UMTS networks with higher transmission rates, the launch of HSPA+ and an upgrade of the GSM networks. In addition, Deutsche Telekom will maintain its commitment to introducing LTE technology as the fourth generation of mobile communications. Further investments are planned to improve and refine cus- tomer service and raise process efficiency. In the second quarter of the current financial year, the structure of the seg- ment’s consolidated group changed due to the merger of the two operating segments Europe and Southern and Eastern Europe into the new Europe operating segment and the establishment of the joint venture in the United Kingdom. Against this background, Deutsche Telekom anticipates a decline in revenue and adjusted EBITDA for the Europe operating segment at the end of the 2010 financial year. Adjusted for this deconsolidation effect and on the basis of comparable figures for the OTE group, which was fully consolidated for the first time in February 2009, Deutsche Telekom forecasts a slight decrease in revenue and adjusted EBITDA in the Europe operating segment in the 2010 and 2011 financial years compared with the respective prior years, while mar- gins are expected to remain high. Deutsche Telekom still faces a challenging macroeconomic situation and in- tense competition in the Europe operating segment. In addition, regulatory measures, legislative changes – in particular government-led cost cutting pro- grams – and exchange rate fluctuations in some countries, plus an intro duction of or increase in mobile communications taxes, may have a negative effect on revenue and earnings when translated to euros. Strategic initiatives and cost- cutting measures are already having a positive impact and are expected to compensate in part for any negative effects. 6 T-Mobile USA’s HSPA+ technology offers customers a 4G experience, including data speeds comparable to other 4G networks currently available to device users in the United States.

Interim consolidated financial statements 49 Interim consolidated financial statements. Consolidated statement of financial position. Sept. 30, 2010 millions of € Dec. 31, 2009 millions of € Change millions of € Change % Sept. 30, 2009 millions of € Assets Current assets Cash and cash equivalents Trade and other receivables Current recoverable income taxes Other financial assets Inventories Non-current assets and disposal groups held for sale Other assets Non-current assets Intangible assets Property, plant and equipment Investments accounted for using the equity method Other financial assets Deferred tax assets Other assets Total assets Liabilities and shareholders’ equity Current liabilities Financial liabilities Trade and other payables Income tax liabilities Other provisions Liabilities directly associated with non-current assets and disposal groups held for sale Other liabilities Non-current liabilities Financial liabilities Provisions for pensions and other employee benefits Other provisions Deferred tax liabilities Other liabilities Liabilities Shareholders’ equity Issued capital Treasury shares Capital reserves Retained earnings including carryforwards Total other comprehensive income Total other comprehensive income directly associated with non-current assets and disposal groups held for sale Net profit (loss) Issued capital and reserves attributable to owners of the parent Non-controlling interests Total liabilities and shareholders’ equity 13,918 23,012 2,074 7,080 221 1,525 1,293 75 1,650 113,841 53,702 44,312 7,601 2,609 5,200 417 5,022 6,757 144 2,001 1,174 6,527 1,387 104,762 51,705 45,468 147 1,739 5,162 541 127,759 127,774 25,288 11,014 5,962 693 3,098 - 4,521 59,111 39,159 6,871 1,772 7,636 3,673 84,399 43,360 11,165 (5) 11,160 51,532 (24,341) (2,470) - 2,277 38,158 5,202 127,759 127,774 (9,094) (2,948) 323 77 (476) 119 (6,452) 263 9,079 1,997 (1,156) 7,454 870 38 (124) (15) 494 1,623 (342) 182 (271) (1,423) 725 (1,932) (2,641) 692 (389) 483 (77) 1,423 0 0 0 2 (3,390) 1,106 2,162 1,924 1,804 (381) (15) 24,794 9,391 6,304 511 3,369 1,423 3,796 61,043 41,800 6,179 2,161 7,153 3,750 41,937 11,165 (5) 11,160 51,530 (20,951) (3,576) (2,162) 353 36,354 5,583 85,837 (1,438) (39.5) (58.7) 4.8 53.5 (23.8) 10.1 (98.9) 19.0 8.7 3.9 (2.5) n.a. 50.0 0.7 (22.9) (0.0) 2.0 17.3 (5.4) 35.6 (8.0) n.a. 19.1 (3.2) (6.3) 11.2 (18.0) 6.8 (2.1) (1.7) 3.4 0.0 0.0 0.0 0.0 (16.2) 30.9 n.a. n.a. 5.0 (6.8) (0.0) 24,384 6,080 6,847 137 1,842 1,353 6,402 1,723 104,953 51,837 45,320 160 1,852 5,240 544 129,337 26,404 11,449 6,114 427 2,824 1,358 4,232 61,344 42,018 6,176 2,577 6,978 3,595 87,748 41,589 11,165 (5) 11,160 51,529 (20,956) (3,914) (2,242) 356 35,933 5,656 129,337

Interim consolidated financial statements 51 Consolidated statement of comprehensive income. Profit (loss) Actuarial gains and losses on defined benefit pension plans Revaluation due to business combinations Exchange differences on translating foreign operations Recognition of other comprehensive income in income statement Change in other comprehensive income (not recognized in income statement) Available-for-sale financial assets Recognition of other comprehensive income in income statement Change in other comprehensive income (not recognized in income statement) Fair value measurement of hedging instruments Recognition of other comprehensive income in income statement Change in other comprehensive income (not recognized in income statement) Share of profit (loss) of investments accounted for using the equity method Other income and expense recognized directly in equity Income taxes relating to components of other comprehensive income Other comprehensive income Total comprehensive income Total comprehensive income attributable to Owners of the parent Non-controlling interests Q3 2010 millions of € Q3 2009 millions of € Change millions of € Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change millions of € FY 2009 millions of € 1,191 (298) 0 0 1,145 (490) 0 - 46 192 0 0 2,520 (595) (1) 2,151 817 (490) (33) 1,703 (105) 32 873 (461) (38) - 2,151 - (2,302) (630) (1,672) 1,248 (578) 1,826 (211) 0 0 0 (100) 12 0 110 (2,578) (1,387) (1,387) (1,587) 200 0 11 22 (98) - 0 156 (1,029) 116 116 (79) 195 0 (11) (22) (2) 12 0 (46) (1,549) (1,503) (1,503) (1,508) 5 0 (5) 0 (84) 0 0 195 2,909 5,429 5,429 5,190 239 0 5 (4) (65) - 11 162 (992) (175) (175) (681) 506 0 (10) 4 (19) 0 (11) 33 3,901 5,604 5,604 5,871 (267) 0 (4) 8 (56) - 11 138 (613) 260 260 (261) 521

Interim consolidated financial statements 53 Issued capital and reserves attributable to owners of the parent Total Non-controlling interests Total shareholders’ equity Total other comprehensive income Translation of foreign operations millions of € Revaluation surplus millions of € Available-for-sale financial assets millions of € Cash flow hedges millions of € Other comprehensive income millions of € Taxes millions of € millions of € (6,356) 202 3 1,085 (11) (334) 39,997 (616) (6,972) (6,577) 3,394 (3,183) (33) (65) 104 118 (1) (59) 58 (2) 1 (3) (3) (6) (69) 1,016 1,037 (84) 953 11 0 0 0 0 0 (3,386) 3 356 (1,037) 0 35,933 29 (305) (313) 36,354 0 0 (3,386) 2 (2) 2,277 2,913 0 38,158 21 (292) millions of € millions of € 3,115 2,876 (841) 0 461 45 43,112 2,876 0 (4,227) 3 817 (992) 0 5,656 41,589 5,583 (23) (600) 3 243 (4) 5,202 41,937 (23) 0 (3,986) 5 (2) 2,520 2,909 0 43,360

Interim consolidated financial statements 55 Selected explanatory notes. Accounting policies. In accordance with § 37x (3) of the Securities Trading Act (Wertpapierhandels- gesetz – WpHG), Deutsche Telekom AG’s quarterly financial report comprises interim consolidated financial statements and an interim management report for the Group. The interim consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRSs) applicable to interim financial reporting as adopted by the EU. The interim management report for the Group was prepared in accordance with the applicable provisions of the WpHG. Statement of compliance. The interim consolidated financial statements for the period ended Sep tem- ber 30, 2010 are in compliance with International Accounting Standard (IAS) 34. As permitted by IAS 34, it has been decided to publish a condensed version compared to the consolidated financial statements at December 31, 2009. All IFRSs issued by the International Accounting Standards Board (IASB), effective at the time of preparing this Interim Report and applied by Deutsche Telekom, have been adopted for use in the EU by the European Commission. As such, this Interim Group Report is also in compliance with the IFRSs as published by the IASB. In the opinion of the Board of Management, the reviewed quarterly financial report includes all standard adjustments to be applied on an ongoing basis that are required to give a true and fair view of the results of operations, financial position and cash flows of the Group. Please refer to the notes to the consoli- dated financial statements as of December 31, 2009 for the accounting poli- cies applied for the Group’s financial reporting. Since April 1, 2010, Deutsche Telekom’s organizational structure has reflected the realigned management structure of the two previous operating segments Europe and Southern and Eastern Europe, which was approved by the Supervisory Board on February 24, 2010. The two operating segments were merged on April 1, 2010 to form the new Europe operating segment that covers all activities of the fixed-network and mobile communications enterprises of the national companies in Greece, Romania, Hungary, Poland, the Czech Republic, Croatia, the Netherlands, Slovakia, Austria, Albania, the F.Y.R.O. Macedonia, Montenegro, Bulgaria, and the United Kingdom as well as the International Carrier Sales and Services unit, which mainly provides wholesale telecommunications services for the Group’s other operating segments. Since April 1, 2010, Deutsche Telekom has therefore reported on the four operating segments Germany, Europe, United States, and Systems Solutions, as well as on Group Headquarters & Shared Services. Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period. In January 2008, the IASB issued the revised standards IFRS 3 “Business Combinations” and IAS 27 “Consolidated and Separate Financial State- ments.” The standards are the result of the second phase of the project under- taken jointly with the Financial Accounting Standards Board (FASB) to reform the accounting for business combinations. The revised IFRS 3 and IAS 27 were endorsed by the European Union in June 2009. Deutsche Telekom has applied the revised standards prospectively since January 1, 2010 to transactions and business combinations. The figures for prior-year periods have not been ad- justed. The main changes that the revised IFRS 3 will make to the existing require- ments are described below: n The revised IFRS 3 gives the option of measuring non-controlling interests either at fair value or at the proportionate share of the net identifiable assets. This option can be exercised for each business combination individually. n In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at the date the acquirer ob- tains control. Goodwill shall then be determined as the difference between the remeasured carrying amount plus consideration transferred for the ac- quisition of the new shares, minus net assets acquired. n Contingent consideration shall be measured at fair value at the acquisition date and classified either as equity, or as asset or liability at the acquisition date. Agreed contingent consideration shall be recognized subsequently in accordance with the classification determined at the acquisition date. n Acquisition-related costs incurred in connection with business combina- tions shall be recognized as expenses. n For changes in contingent considerations classified as liabilities at the acquisition date, goodwill cannot be remeasured subsequently. n According to the revised IFRS 3, effects from the settlement of relation- ships existing prior to the business combination shall not be part of the exchange for the acquiree.

Interim consolidated financial statements 57 Changes in the composition of the Group. Deutsche Telekom acquired and disposed of entities in the current and prior financial years. This imposes certain limits on the comparability of the interim consolidated financial statements and the disclosures under segment report- ing. Above all, the transactions include OTE, which was fully consolidated in the Southern and Eastern Europe operating segment for the first time effective February 6, 2009 (included in the Europe operating segment since April 1, 2010). In particular, STRATO was fully consolidated in the Germany operating segment as of January 1, 2010. Furthermore, Deutsche Telekom lost control over T-Mobile UK as of April 1, 2010 due to the merger of T-Mobile UK and Orange UK into a joint venture company under the name Everything Everywhere. Instead, the joint venture is included in the consolidated statement of financial position under investments accounted for using the equity method and reported in the Europe operating segment. The following table shows the effect of changes in the composition of the Group on the consolidated income statement and segment reporting for the first nine months of 2010. Germany millions of € Europe millions of € United States millions of € Systems Solutions millions of € Group Headquarters & Shared Services millions of € Reconciliation millions of € Total millions of € Net revenue Cost of sales Gross profit (loss) Selling expenses General and administrative expenses Other operating income Other operating expenses Profit (loss) from operations Finance costs Share of profit (loss) of associates and joint ventures accounted for using the equity method Other financial income (expense) Profit (loss) from financial activities Profit (loss) before income taxes Income taxes Profit (loss) 68 (31) 37 (24) (7) 1 - 7 - - - - 7 0 7 (1,236) 816 (420) 384 16 3 (11) (28) 28 - 16 44 16 (11) 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 61 (61) 0 4 - 38 (41) 1 - - (6) (6) (5) 23 18 (1,107) 724 (383) 364 9 42 (52) (20) 28 - 10 38 18 12 30

Interim consolidated financial statements 59 As of April 1, 2010, the date of first-time inclusion using the equity method, the fair value of the 50-percent stake in the joint venture was EUR 7.3 billion. This was offset against the aforementioned carrying amounts of the assets and liabilities to be disposed of. Taking into account financing relationships within the Group, the T-Mobile UK assets and liabilities to be disposed of had a car- rying amount of EUR 5.5 billion. This resulted in a gain on deconsolidation of EUR 1.8 billion. Until the date of deconsolidation, the accumulated loss of EUR 2.2 billion arising from the currency translation of the assets and liabilities since the acquisition of T-Mobile UK was recognized directly in equity in total other comprehensive income. As of the date of deconsolidation, this amount was recognized in profit or loss. These two effects on profit or loss, which have a net impact of EUR 0.4 billion, were recognized under other operating expenses. Acquisition of a stake in Firstgate (ClickandBuy). On March 23, 2010, Deutsche Telekom signed an agreement with the former shareholders for the acquisition of the remaining shares in the Internet payment service provider Firstgate. Deutsche Telekom obtained control of the entity as of April 1, 2010 and, as a result, fully consolidated it for the first time as of that date. Via its venture capital company, T-Venture, Deutsche Telekom has held 20.2 percent of the shares in Firstgate, best known for the ClickandBuy brand, since 2006. The purchase price for the remaining 79.8 percent of the shares in Firstgate is expected to be EUR 78 million. The final purchase price remains subject to contractual terms and conditions. The Everything Everywhere joint venture in the United Kingdom. Effective April 1, 2010, Deutsche Telekom AG and France Télécom S.A. merged the entities T-Mobile UK and Orange UK into a joint venture under the name Everything Everywhere. Each entity holds a 50-percent stake in the new com- pany. As a result of this merger, Deutsche Telekom lost control over T-Mobile UK. Instead, the joint venture was included in the consolidated statement of financial position under investments accounted for using the equity method. The carrying amounts of the major classes of assets and liabilities of T-Mobile UK as of April 1, 2010 were as follows: Current assets Trade and other receivables Other current assets Non-current assets Intangible assets Property, plant and equipment Other non-current assets Non-current assets and disposal groups held for sale Current liabilities Trade and other payables Other current liabilities Non-current liabilities Liabilities directly associated with non-current assets and disposal groups held for sale millions of € 667 280 387 6,022 3,833 1,664 525 6,689 761 501 260 695 1,456

Interim consolidated financial statements 61 0.8 GHz) purchased at auction. Payment for the spectrum in the 2.6 GHz range, for which Deutsche Telekom had not received an assignment notice from the Federal Network Agency as of September 30, 2010, was recognized as an advance payment on intangible assets. The Federal Network Agency issued the missing assignment notice for spectrum in the 2.6 GHz range to Deutsche Telekom on October 20, 2010. In the prior year by contrast, additions to assets were impacted by the first-time full consolidation of the OTE group in the con- solidated financial statements which generated goodwill of EUR 2.4 billion. Investments accounted for using the equity method. The carrying amount of investments accounted for using the equity method as of September 30, 2010 increased by EUR 7.5 billion compared with December 31, 2009, mainly due to the first-time inclusion of the joint venture in the United Kingdom using the equity method. Further information can be found under “Business combinations and other transactions.” Exchange rate effects of EUR 0.3 billion also increased the carrying amount of the joint venture as of September 30, 2010. Non-current other financial assets. Deutsche Telekom and France Télécom S.A. each acquired a bond of EUR 0.8 billion of the newly established joint venture Everything Everywhere. The bond was recognized under non-current other financial assets as of September 30, 2010. Financial liabilities. The table below shows the composition and maturity structure of financial liabilities as of September 30, 2010. Sept. 30, 2010 millions of € Due ≤1 year millions of € Due >1 year ≤ 3 years millions of € Due >3 years ≤ 5 years millions of € Due > 5 years millions of € Bonds and other securitized liabilities Liabilities to banks Lease liabilities Liabilities to non-banks from promissory notes Other interest-bearing liabilities Other non-interest-bearing liabilities Derivative financial liabilities 38,138 3,952 1,904 1,151 846 3,384 798 6,430 279 121 0 600 3,369 215 Financial liabilities 50,173 11,014 7,658 1,453 207 50 57 11 258 9,694 8,456 1,889 200 142 81 1 260 15,594 331 1,376 959 108 3 65 11,029 18,436 Treasury shares. The Board of Management of Deutsche Telekom decided on July 27, 2010 to exer- cise the authorization to purchase shares in the Company granted by the share- holders’ meeting on May 3, 2010 and to purchase shares up to a purchase price of EUR 400 million (excluding transaction costs) through the stock exchange. The share buy-back began on August 10, 2010 (earliest possible purchase date) and will be completed by December 31, 2010 (latest possible purchase date). The number of treasury shares increased by 180,490 as of September 30, 2010 to 2,061,998. The nominal amount totaling EUR 5 million was deducted from issued capital. The difference between the purchase price and the nominal amount (EUR 2 million) was offset against retained earnings.

Interim consolidated financial statements 63 General and administrative expenses. General and administrative expenses (1,210) (983) (23.1) (3,774) (3,588) (5.2) (4,653) Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € The reasons for the increase in general and administrative expenses of 5.2 per- cent in the first three quarters of 2010 include higher expenses for the restruc- turing of the Group as part of the One Company project, and for legal risks. Other operating income/expenses. Other operating income Other operating expenses Q3 2010 millions of € Q3 2009 millions of € 371 (389) 391 (251) Change % (5.1) (55.0) Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € 1,045 (1,144) 1,031 (2,463) 1.4 53.6 1,504 (3,319) Other operating expenses included EUR 0.4 billion from the deconsolidation of T-Mobile UK. Further information can be found under “Business combinations and other transactions.” In the first quarter of 2009, an impairment loss of EUR 1.8 billion had been recognized on the goodwill of the cash generating unit T-Mobile UK. Profit/loss from financial activities. Profit (loss) from financial activities Finance costs Interest income Interest expense Share of profit (loss) of associates and joint ventures accounted for using the equity method Other financial income (expense) Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € (590) (673) 69 (742) (53) 136 (802) (668) 68 (736) 7 (141) 26.4 (0.7) 1.5 (0.8) n.a. n.a. (2,013) (1,914) 287 (2,201) (73) (26) (2,559) (1,935) 259 (2,194) 21 (645) 21.3 1.1 10.8 (0.3) n.a. 96.0 (3,357) (2,555) 341 (2,896) 24 (826) The decrease in loss from financial activities was primarily attributable to other financial income/expense, which improved by EUR 0.6 billion compared with the first three quarters of 2009, mainly a result of positive effects from hedging relationships for financing in foreign currencies and for the purpose of interest management. Among other factors, these hedging relationships were attribut- able to an equity transaction at T-Mobile USA. Positive effects also resulted from the year-on-year reduction in expenses for the measurement of provisions and liabilities (interest component).

Interim consolidated financial statements 65 Depreciation, amortization and impairment losses. Amortization and impairment of intangible assets Of which: mobile communications licenses Of which: goodwill Depreciation and impairment of property, plant and equipment Total depreciation, amortization and impairment losses Q3 2010 millions of € Q3 2009 millions of € Change % Q1 – Q3 2010 millions of € Q1 – Q3 2009 millions of € Change % FY 2009 millions of € (829) (186) - (1,991) (2,820) (865) (228) (11) (2,031) (2,896) 4.2 18.4 n.a. 2.0 2.6 (2,478) (558) - (5,771) (8,249) (4,340) (719) (1,817) (6,269) (10,609) 42.9 22.4 n.a. 7.9 22.2 (5,657) (905) (2,345) (8,237) (13,894) Depreciation, amortization and impairment losses decreased by EUR 2.4 bil- lion compared with the prior-year period. This was primarily due to an impair- ment loss of EUR 1.8 billion recognized on the goodwill of the cash generating unit T-Mobile UK in 2009 and to lower depreciation of technical equipment and machinery, mainly attributable to the fact that depreciation charges for T-Mobile UK’s assets were no longer recognized in the reporting period. Notes to the consolidated statement of cash flows. Net cash from operating activities. Net cash from operating activities in the first three quarters of 2010 decreased by EUR 2.6 billion to EUR 9.3 billion compared with the prior-year period. This was mainly attributable to cash outflows of EUR 1.3 billion for the acquisition of mobile communications licenses (spectrum) in Germany and a decrease of EUR 0.7 billion in cash inflows from the sale of receivables (factoring). Other changes in net cash from operating activities relate to various effects, including additions to inventories, trade receivables, and higher payments for restructur- ing measures. Net cash used in investing activities. Net cash used in investing activities totaled EUR 6.8 billion as compared with EUR 6.0 billion in the same period of the previous year. This development was due in part to the addition of the cash and cash equivalents of the OTE group amounting to EUR 1.6 billion as part of the first-time full inclusion of OTE from February 2009 and in part to the derecognition and related changes to cash and cash equivalents in connection with the deconsolidation of T-Mobile UK, amounting to EUR 0.4 billion, as of April 1, 2010. In addition, Deutsche Telekom purchased a bond of EUR 0.8 billion issued by the Everything Everywhere joint venture in 2010. Cash outflows for investments in intangible assets and property, plant and equipment, by contrast, decreased by EUR 0.9 billion. In addition, net cash in- flows from the change in short-term investments and marketable securities and receivables were EUR 0.7 billion higher than in the first three quarters of 2009. Inflows from the return of cash collateral deposited in the prior year for the acquisition of STRATO totaling EUR 0.3 billion and the reduction of collateral deposited for hedging transactions amounting to a net total of EUR 0.3 billion in the first nine months of 2010 contributed in particular to this development. There were no comparable cash inflows in the prior-year period. In addition, cash outflows for the acquisition of companies decreased by EUR 0.3 billion. While cash outflows of EUR 0.7 billion were recorded in the first three quarters of 2009 for the acquisition of additional stakes in OTE, the same period in 2010 saw cash outflows of EUR 0.3 billion and EUR 0.1 billion for the acquisition of STRATO and ClickandBuy respectively. Net cash used in financing activities. Net cash used in financing activities amounted to EUR 5.6 billion in the 2010 reporting period, compared with EUR 2.8 billion in the prior-year period. This change was mostly attributable to EUR 2.5 billion lower year-on-year pro- ceeds from the issue of non-current financial liabilities and EUR 0.6 billion higher net repayments of current financial liabilities. Dividend payments of OTE and Slovak Telekom, by contrast, decreased by EUR 0.2 billion and EUR 0.1 billion respectively. The issue of financial liabilities in the first nine months of 2010 consisted in parti cular of the sale of medium-term notes for EUR 1.5 billion, the sale of euro bonds amounting to EUR 1.2 billion, the borrowing of funds from the Everything Everywhere joint venture in the amount of EUR 0.5 billion, and the issue of promissory notes for EUR 0.1 billion. This is compared with repayments in the same period of USD bonds amounting to EUR 2.4 billion, euro bonds amounting to EUR 2.0 billion, a loan of EUR 0.5 billion from the European In- vestment Bank, a loan of EUR 0.2 billion from Kreditanstalt für Wiederaufbau, and other net repayments totaling EUR 0.2 billion. In addition, the net returns from hedging transactions totaled EUR 0.5 billion.

Interim consolidated financial statements 67 Segment information in the first nine months. Q1 – Q3 2010 Q1 – Q3 2009 Germany Europe United States Systems Solutions Group Headquarters & Shared Services Total Reconciliation Group Net revenue millions of € Inter- segment revenue millions of € Total revenue millions of € Profit (loss) from opera- tions (EBIT) millions of € Depreciation and amortization millions of € Impairment losses millions of € Segment assets millions of € Investments accounted for using the equity method millions of € 17,509 17,828 12,433 14,110 12,135 11,802 4,697 4,465 170 197 46,944 48,402 - - 46,944 48,402 1,194 1,194 494 462 10 11 1,881 1,945 1,545 1,626 5,124 5,238 (5,124) (5,238) - - 18,703 19,022 12,927 14,572 12,145 11,813 6,578 6,410 1,715 1,823 52,068 53,640 (5,124) (5,238) 46,944 48,402 3,868 4,008 1,463 2 1,620 1,779 49 54 (1,253) (964) 5,747 4,879 (66) (125) 5,681 4,754 (3,070) (3,131) (2,574) (2,959) (1,535) (1,545) (456) (517) (522) (486) (8,157) (8,638) 40 30 (8,117) (8,608) (9) (7) (12) (1,829) (1) (2) 0 0 (78) (162) (100) (2,000) (32) (1) (132) (2,001) 38,692 53,250 46,754 47,860 37,458 35,294 8,793 8,887 110,684 125,815 242,381 271,106 (114,622) (141,769) 127,759 129,337 28 23 7,488 52 30 18 55 54 0 0 7,601 147 - 13 7,601 160 Segment information for the 2009 financial year. FY 2009 Germany Europe United States Systems Solutions Group Headquarters & Shared Services Total Reconciliation Group Net revenue millions of € Inter- segment revenue millions of € Total revenue millions of € Profit (loss) from opera- tions (EBIT) millions of € Depreciation and amortization millions of € Impairment losses millions of € Segment assets millions of € Investments accounted for using the equity method millions of € 23,813 18,996 15,457 6,083 253 64,602 1,610 611 14 2,715 2,157 7,107 - (7,107) 64,602 - 25,423 19,607 15,471 8,798 2,410 71,709 (7,107) 64,602 5,062 140 2,233 (11) (1,249) 6,175 (163) 6,012 (4,189) (3,772) (2,025) (718) (660) (11,364) 41 (7) (2,385) (3) (3) (173) (2,571) 52,002 46,759 36,087 8,872 120,162 263,882 - (136,108) (11,323) (2,571) 127,774 23 52 18 54 - 147 - 147

Interim consolidated financial statements 69 Executive bodies. Changes in the composition of the Board of Management. Events after the reporting period (September 30, 2010). For information on events after the reporting period, please refer to the “Events after the reporting period” section in the interim Group management report. On January 29, 2010, the Supervisory Board of Deutsche Telekom approved the proposal by the Board of Management to reassign Hamid Akhavan’s responsi- bilities on a temporary basis. Board of Management members Guido Kerkhoff and Reinhard Clemens have assumed Hamid Akhavan’s responsibilities in an acting capacity. Guido Kerkhoff assumed temporary responsibility for the Eu - ro pe operating segment (the United Kingdom, the Netherlands, Austria, Poland and the Czech Republic) and International Sales & Service effective February 15, 2010. Reinhard Clemens, also in an acting capacity, assumed Group-wide responsibility for the remaining units of the Chief Operating Officer (COO), such as Products & Innovation, Technology, IT and Procurement effective the same date. On February 24, 2010, the Supervisory Board of Deutsche Telekom approved the proposal by the Board of Management to extend Guido Kerkhoff’s area of responsibility on a long-term basis. Since April 1, 2010, Guido Kerkhoff has been responsible for the Europe operating segment in addition to the Southern and Eastern Europe operating segment. The previous Chief Operating Officer (COO) Board of Management department has been adjusted accordingly. Since April 1, 2010, the two operating segments have been merged and are continuing operations as the Europe operating segment. At its meeting on May 2, 2010, the Supervisory Board appointed Edward R. Kozel as a new member of Deutsche Telekom’s Board of Management effective May 3, 2010. Edward R. Kozel took over as member of the Board of Management for Technology and Innovation/Chief Technology and Innovation Officer (CTIO) and as such is responsible for Technology, IT, Procurement, and Products & Innovation for standard business (consumers and business customers). Changes in the composition of the Supervisory Board. Prof. Dr. Wolfgang Reitzle and Prof. Dr. Wulf von Schimmelmann stepped down from the Supervisory Board effective midnight on December 31, 2009, and Dr. Wulf H. Bernotat and Prof. h.c. (CHN), Dr.-Ing. E.h. Dr. Ulrich Middelmann were appointed to the Supervisory Board by court order effective January 1, 2010. Josef Falbisoner resigned his seat on the Supervisory Board effective at the end of the shareholders’ meeting on May 3, 2010, and Sibylle Spoo was ap- pointed to the Supervisory Board by court order effective May 4, 2010.

71 Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU nor the IFRSs as issued by the IASB for interim financial reporting nor that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act appli- cable to interim group management reports. Stuttgart/Frankfurt am Main, November 4, 2010 Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Stuttgart (Prof. Dr. Wollmert) Wirtschaftsprüfer (Forst) Wirtschaftsprüfer PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft Frankfurt am Main (Kayser) Wirtschaftsprüfer (Tandetzki) Wirtschaftsprüfer Review report. To Deutsche Telekom AG We have reviewed the condensed consolidated interim financial statements – comprising the statement of financial position, the income statement and state- ment of comprehensive income, the statement of changes in equity, the state- ment of cash flows, and selected explanatory notes – and the interim Group management report of Deutsche Telekom AG, Bonn, for the period from Janu- ary 1 to September 30, 2010, which are part of the quarterly financial report pursuant to § 37x (3) of the German Securities Trading Act (Wertpapierhandels- gesetz – WpHG). The preparation of the condensed consolidated interim finan- cial statements in accordance with the IFRSs applicable to the interim financial reporting as adopted by the EU and to the interim Group management report in accordance with the provisions of the German Securities Trading Act appli- cable to interim group management reports is the responsibility of the parent company’s board of management. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim Group management report based on our review. In addition, we have been in- structed to extend our review report to the compliance of the condensed con- solidated interim financial statements with the IFRSs as issued by the IASB applicable to interim financial reporting. We conducted our review of the condensed consolidated interim financial statements and the interim Group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW) and additionally observed the International Standards on Review Engagements, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” (ISRE 2410). These standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accord- ance with the IFRSs applicable to interim financial reporting as adopted by the EU, the IFRSs as issued by the IASB applicable to the interim financial reporting and that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is lim- ited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.

Additional information 73 Q1 – Q3 2010 millions of € 46,944 (26,521) 20,423 (10,869) (3,774) 1,045 (1,144) 5,681 (2,013) 3,668 (1,148) 2,520 2,520 2,277 243 5,681 (8,249) 13,930 29.7 (10,985) 23.4 Special factors Q1 – Q3 2010 millions of € Q1 – Q3 2010 adjusted for special factors millions of € - (349)a (349) (129)b (102)c 18d (439)e (1,001) (93)f (1,094) 652g (442) (442) (397) (45) (1,001) (8) (993) (370)h 46,944 (26,172) 20,772 (10,740) (3,672) 1,027 (705) 6,682 (1,920) 4,762 (1,800) 2,962 2,962 2,674 288 6,682 (8,241) 14,923 31.8 (10,615) 22.6 Reconciliation of the adjusted consolidated income statement. Net revenue Cost of sales Gross profit (loss) Selling expenses General and administrative expenses Other operating income Other operating expenses Profit (loss) from operations (EBIT) Profit (loss) from financial activities Profit (loss) before income taxes Income taxes Profit (loss) Profit (loss) attributable to Owners of the parent (net profit (loss)) Non-controlling interests Profit (loss) from operations (EBIT) Depreciation, amortization and impairment losses EBITDA EBITDA margin (%) Personnel costs Personnel cost ratio (%) a Expenses for staff-related measures and non-staff-related restructuring as well as EUR 0.1 billion for the write-off of receivables from the German Main Customs Office at PASM in the Germany operating segment. b Mainly expenses for staff-related measures in the Germany and Europe operating segments. c Mainly expenses for staff-related measures in the Germany and Europe operating segments and for non-staff-related restructuring, and other expenses. d Mainly reversals of provisions and claims for payment in connection with concluded sales of parts of companies. e Mainly expenses of EUR 0.4 billion incurred as a result of the reclassification of T-Mobile UK in connection with the establishment of the joint venture with France Télécom S.A. under the name Everything Everywhere in the Europe operating segment. f Mainly expenses for interest added back to provisions for staff-related measures. g Tax effects on special factors in profit before income taxes and a write-up of deferred tax assets of EUR 0.3 billion at T-Mobile NL in the Europe operating segment. h Mainly expenses for staff-related measures in the Germany operating segment and at Group Headquarters & Shared Services.

Additional information 75 Free cash flow in the Group. Gross and net debt of the Group. Deutsche Telekom defines free cash flow as cash generated from operations less interest paid and net cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment. Gross debt includes not only bonds and liabilities to banks, but also liabilities to non-banks from promissory notes, lease liabilities, derivative financial liabilities and cash collateral received for positive fair values of derivatives, as well as other interest-bearing financial liabilities. Deutsche Telekom believes that free cash flow is used by investors as a measure to assess the Group’s cash generated from operations (after deductions for interest paid and cash outflows for investments in intangible assets (excluding goodwill and spectrum investment) and property, plant and equipment), in par- ticular with regard to subsidiaries, associates and joint ventures, and the repay- ment of debt. In adopting this definition, Deutsche Telekom reflects the fact that investments in new technologies and efficiency enhancements in operating activities enable tied-up capital to be released. These inflows should therefore be taken into account in assessing investment expenditure and included in free cash flow accordingly. Free cash flow should not be used to determine the financial position of the Group. A further factor to be noted is that Deutsche Telekom’s definition of free cash flow and its methods of computing this measure are comparable with similarly designated measures and disclosures by other companies only to a limited extent. Net debt is calculated by deducting cash and cash equivalents as well as finan- cial assets classified as held for trading and available for sale (due ≤ 1 year). In addition, all derivative financial assets and other financial assets are deducted from gross debt. Other financial assets include all cash collateral paid for nega- tive fair values of derivatives as well as other interest-bearing financial assets. Deutsche Telekom considers net debt to be an important performance indi- cator for investors, analysts and rating agencies.

Additional information 77 Glossary. 3G. 3G is the third-generation mobile communications standard that supports higher transmission rates. In Germany, this is the Universal Mobile Telecommu- nications System (UMTS) standard. 4G. See LTE. DSL – Digital Subscriber Line. In Deutsche Telekom’s service portfolio as: n ADSL (Asymmetrical Digital Subscriber Line) for retail lines: Technology used to transmit data at fast rates (from 16 kbit/s to 640 kbit/s upstream, up to 8 Mbit/s downstream) via standard copper wire pairs in the local loop within a radius of approximately three kilometers. All-IP. An all-IP network makes services such as VoIP, IPTV (Internet Protocol Television), data transfer, etc., available to all users anywhere at all times. The data is transmitted in switched packets using the Internet Protocol (IP). n ADSL2+: Successor product to ADSL that raises the maximum data rate to 16 Mbit/s (downstream) or 1 Mbit/s (upstream). ARPU – Average Revenue Per User. ARPU is predominantly used in the mobile communications industry to describe the revenue generated per cus- tomer per month. n VDSL (Very high bit rate Digital Subscriber Line) is a new technology used to transmit exceptionally high data rates (10 Mbit/s upstream, 50 Mbit/s downstream) via a fiber-optic network. Call center. A company, or department of a company, that offers operator- supported voice services. A large number of operators handle inbound calls via a hotline and/or outbound calls as part of a direct marketing campaign. EBIT. EBIT is profit/loss from operations as shown in the consolidated income statement. Cash capex. Investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the statement of cash flows. Cloud services. Cloud computing is the dynamic provision of infrastructure, software or platform services online. Apart from a high level of automation and virtualization, the services provided have to be multi-client-capable and include standardized hardware and software. Customers source these services on demand and pay based on actual usage. The communication infrastructure may be the Internet (public cloud), a corporate network (private cloud) or a mix of the two (hybrid cloud). Dynamic Services is a T-Systems product for the flex- ible procurement of ICT resources and services based on the idea of dynamic net-centric sourcing. Desktop services. Global desktop services involve a variety of support ser- vices, including the outsourcing of entire IT networks. In this context Deutsche Telekom offers a full portfolio of corporate IT services, from server infrastruc- ture and PC workstations through to application management and call center services that provide user support. EBITDA. Profit/loss from operations before depreciation, amortization and impairment losses. Equity ratio. Ratio of shareholders’ equity to total assets. Fixed-network lines. Lines in operation excluding internal use and public tele- communications, including IP-based lines. The totals reported in the interim Group management report were calculated on the basis of precise figures and rounded to millions. Percentages were calculated on the basis of the figures shown. Fixed network: Resale. Sale of broadband lines based on DSL technology to alternative providers outside Deutsche Telekom, including bundled IP-Bit- stream Access (IP-BSA). In the case of IP-BSA, Deutsche Telekom leases DSL lines to the competitor and transports the datastream carried over these lines. Free cash flow. Cash generated from operations less interest paid and net cash outflows for investments in intangible assets (excluding goodwill and spectrum investment) and property, plant and equipment. Grid computing. Grid computing is a form of distributed computing whereby a supercomputer is created from a cluster of loosely coupled computers. The difference between grid computing and conventional computer clusters lies in the considerably looser coupling, the heterogeneity and the broad geographi- cal distribution of the computers. In addition, a grid is usually established for a specific application and often uses standardized program libraries and mid- dleware.

Additional information 79 Utilization rate. Systems Integration: Ratio of average number of hours billed to maximum possible hours billed per period. VDSL. See DSL. Wholesale. The business of selling services to third parties who in turn sell them to their own end customers either directly or after further processing (see also Resale). Wholesale bundled lines (IP-Bitstream Access (IP-BSA)). Wholesale product for which Deutsche Telekom leases DSL lines to the competitor and transports the datastream via its concentrator network to the associated broadband point of presence (PoP) where the datastream is handed over to the competitor. In contrast to voluntary DSL resale, IP-BSA is a wholesale service required by the regulatory authority. This product is available in conjunction with a Deutsche Telekom PSTN line or as a DSL stand-alone variant (please refer to Wholesale unbundled lines). The totals reported in the interim Group management report were calculated on the basis of precise figures and rounded to millions. Per- centages were calculated on the basis of the figures shown. Wholesale unbundled lines (e.g., IP-BSA Stand Alone (IP-BSA SA)). Whole- sale product not bundled with a Deutsche Telekom PSTN line, which allows competitors to offer an all-IP product range to end-customers. The totals reported in the interim Group management report were calculated on the basis of precise figures and rounded to millions. Percentages were calculated on the basis of the figures shown. WLAN – Wireless Local Area Network. Wireless networks for mobile Internet access. The network can also connect multiple computers to each other or to a central information system, a printer, or a scanner. Service revenues. Service revenues are revenues generated by mobile com- munications customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges and visitor revenues. SIM card – Subscriber Identification Module card. Chip card that is inserted into a cell phone to identify it in the mobile network. Deutsche Telekom’s mobile subsidiaries count their customers by the number of SIM cards activated and not terminated. Customer totals include the SIM cards with which machines can communicate automatically with one another (M2M cards). The mobile com- munications subsidiaries count contract customers as customers for the length of their contracts, and count prepay customers as customers as long as they continue to use Deutsche Telekom’s services, and then for a prescribed period thereafter, which differs according to the particular market. Generally, at the end of this period, or in the case of payment default or voluntary disconnection, the customers are canceled or churned. The churn rate for any given period represents the number of customers whose service was discontinued during that period, expressed as a percentage of the average number of customers during the period, based on beginning and period-end figures. Competitors may calculate their churn rates using different methods. In addition, the respec- tive churn figures are not comparable across all national operations, because different general terms and conditions and thus different deactivation method- ologies are used in different jurisdictions. Smart metering. The service consists of the reading, processing, presentation, and billing of power and energy consumption, and other meters in industry and homes. In particular, it gives energy providers, meter operators and the housing sector the opportunity to offer their customers innovative products and services, as it delivers consumption information virtually in real time. Smartphone. Mobile handsets that can perform the functionalities of a cell phone, a Web browser and an e-mail program simultaneously. ULL – Unbundled Local Loop. Deutsche Telekom wholesale service that can be leased by alternative telecommunications operators without upstream tech- nical equipment in order to offer their own customers a telephone or DSL line. The totals reported in the interim Group management report were calculated on the basis of precise figures and rounded to millions. Percentages were calculated on the basis of the figures shown. UMTS – Universal Mobile Telecommunications System. Third-generation international mobile communications standard that unites mobile multimedia and telematics services in the 2 GHz frequency spectrum.

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