First-time application of new accounting standards as of January 1, 2018 The new accounting standards IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” took effect as of January 1, 2018. Prior-year comparatives were not adjusted. IFRS 15 introduces an amended model for determining and recognizing revenue. The effects of the new regulations on our operating segments differ depending on the underlying business model and, for the most part, neutralize each other. For example, in our Germany operating segment – where the sale of subsidized handsets in combination with service contracts is still customary – the amortization of capitalized contract assets reduces revenue to a minor extent. In our United States operating segment – where customers are predominantly offered payment-by-installment models or lease models – there is a positive impact on revenue and EBITDA, mainly from the capitalization of customer acquisition costs and their distribution over the average customer retention period. At Group level, there is an insignificant effect on revenue and a positive effect on EBITDA. IFRS 15 has a material impact on the presentation of the Group’s results of operations and its financial position. The main effects are explained where the changes in the relevant items of the statement of financial position are discussed. For details on remeasurement and reclassification effects, please refer to the section “Initial application of standards, interpretations, and amendments in the financial year” in the notes to the consolidated financial statements.