Reconciliation of alternative performance measures Special factors The following table presents a reconciliation of EBITDA AL, EBIT, and net profit/loss to the respective figures adjusted for special factors. Reconciliations are presented for the reporting period, the prior-year period, and the full 2018 financial year: (XLS:) Download millions of € EBITDA ALH1 2019 EBITH1 2019 EBITDA ALH1 2018 EBITH1 2018 EBITDA ALFY 2018 EBITFY 2018 EBITDA AL/EBIT 11,221 4,608 10,701 4,523 21,577 8,001 GERMANY (293) (293) (352) (352) (598) (598) Staff-related measures (284) (284) (340) (340) (565) (565) Non-staff-related restructuring (18) (18) (14) (14) (46) (46) Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0 Impairment losses 0 0 0 0 0 0 Other 9 9 2 2 13 13 UNITED STATES (299) (299) (4) (4) (160) (160) Staff-related measures (4) (4) (4) (4) (15) (15) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions (295) (295) 1 1 (145) (145) Impairment losses 0 0 0 0 0 0 Other 0 0 0 0 0 0 EUROPE (86) (86) (52) (52) (122) (797) Staff-related measures (79) (79) (48) (48) (90) (90) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions (5) (5) (1) (1) (14) (14) Impairment losses 0 0 0 0 0 (674) Other (2) (2) (3) (3) (19) (19) SYSTEMS SOLUTIONS (176) (203) (89) (89) (266) (322) Staff-related measures (74) (74) (52) (52) (194) (194) Non-staff-related restructuring (3) (3) (1) (1) (4) (4) Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0 Impairment losses 0 (27) 0 0 0 (56) Other (99) (99) (37) (37) (68) (68) GROUP DEVELOPMENT (25) (25) (9) (9) (27) (27) Staff-related measures (15) (15) (3) (3) (6) (6) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions (10) (10) (5) (5) (21) (21) Impairment losses 0 0 0 0 0 0 Other 0 0 (1) (1) (1) (1) GROUP HEADQUARTERS & GROUP SERVICES (124) (124) (146) (146) (322) (322) Staff-related measures (139) (139) (182) (182) (288) (288) Non-staff-related restructuring (27) (27) (40) (40) (59) (59) Effects of deconsolidations, disposals and acquisitions 25 25 (4) (4) (44) (44) Impairment losses 0 0 0 0 0 0 Other 18 18 80 80 69 69 GROUP (1,002) (1,052) (652) (652) (1,497) (2,204) Staff-related measures (594) (594) (630) (630) (1,159) (1,159) Non-staff-related restructuring (49) (49) (55) (55) (109) (109) Effects of deconsolidations, disposals and acquisitions (285) (285) (9) (9) (223) (223) Impairment losses 0 (50) 0 0 0 (707) Other (74) (74) 42 42 (6) (6) EBITDA AL/EBIT (ADJUSTED FOR SPECIAL FACTORS) 12,223 5,660 11,353 5,175 23,074 10,204 Profit (loss) from financial activities (adjusted for special factors) (871) (893) (2,091) PROFIT (LOSS) BEFORE INCOME TAXES(ADJUSTED FOR SPECIAL FACTORS) 4,788 4,282 8,114 Income taxes (adjusted for special factors) (1,333) (1,230) (2,225) PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) 3,456 3,053 5,889 PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) ATTRIBUTABLE TO Owners of the parent (net profit (loss)) (adjusted for special factors) 2,512 2,428 4,545 Non-controlling interests (adjusted for special factors) 944 625 1,344 Gross and net debt Deutsche Telekom considers net debt to be an important performance indicator for investors, analysts, and rating agencies. (XLS:) Download millions of € June 30, 2019 Dec. 31, 2018 Change Change % June 30, 2018 a Financial liabilities included finance lease liabilities in accordance with IAS 17 for the last time as of December 31, 2018 (EUR 2.5 billion). The new IFRS 16 “Leases” accounting standard has been applied since January 1, 2019. Prior-year comparatives were not adjusted. For more information, please refer to the section “Accounting policies” in the interim consolidated financial statements. Financial liabilities (current)a 13,582 10,527 n.a. n.a. 6,708 Financial liabilities (non-current)a 50,605 51,748 n.a. n.a. 54,554 Lease liabilities 19,347 n.a. n.a. n.a. n.a. FINANCIAL LIABILITIES 83,534 62,275 n.a. n.a. 61,262 Accrued interest (717) (719) 2 0.3 (678) Other (924) (928) 4 0.4 (570) GROSS DEBT 81,893 60,628 n.a. n.a. 60,014 Cash and cash equivalents 3,894 3,679 215 5.8 2,943 Derivative financial assets 2,031 870 1,161 n.a. 1,172 Other financial assets 259 654 (395) (60.4) 1,127 NET DEBT 75,709 55,425 n.a. n.a. 54,772
