18 Shareholders’ equity Issued capital As of December 31, 2018, the share capital of Deutsche Telekom totaled EUR 12,189 million. The share capital is divided into 4,761,458,596 no par value registered shares. (XLS:) Download 2018 2017 thousands % thousands % a According to the last notification from BlackRock published on September 22, 2017, the reporting threshold of 3 percent of the voting rights was exceeded. The stake in Deutsche Telekom was thus 4.92 percent of the voting rights on September 15, 2017. Federal Republic of Germany – Berlin, Germany 689,601 14.5 689,601 14.5 KfW Bankengruppe – Frankfurt/Main, Germany 829,179 17.4 829,179 17.4 Free float 3,242,679 68.1 3,242,679 68.1 Of which: BlackRock, Inc. – Wilmington, DE, United Statesa 234,194 234,194 4,761,459 100.0 4,761,459 100.0 Treasury shares. The shareholders’ meeting resolved on May 25, 2016 to authorize the Board of Management to purchase shares in the Company by May 24, 2021, with the amount of share capital accounted for by these shares totaling up to EUR 1,179,302,878.72, provided the shares to be purchased on the basis of this authorization in conjunction with the other shares of the Company that the Company has already purchased and still possesses or are to be assigned to it under § 71d and § 71e AktG do not at any time account for more than 10 percent of the Company’s share capital. Moreover, the requirements under § 71 (2) sentences 2 and 3 AktG must be complied with. Shares shall not be purchased for the purpose of trading in treasury shares. This authorization may be exercised in full or in part. The purchase can be carried out in partial tranches spread over various purchase dates within the authorization period until the maximum purchase volume is reached. Dependent Group companies of Deutsche Telekom AG within the meaning of § 17 AktG or third parties acting for the account of Deutsche Telekom AG or for the account of dependent Group companies of Deutsche Telekom AG within the meaning of § 17 AktG are also entitled to purchase the shares. The shares are purchased through the stock exchange in adherence to the principle of equal treatment (§ 53a AktG). Shares can instead also be purchased by means of a public purchase or share exchange offer addressed to all shareholders, which, subject to a subsequently approved exclusion of the right to offer shares, must also comply with the principle of equal treatment. The shares may be used for one or several of the purposes permitted by the authorization granted by the shareholders’ meeting on May 25, 2016 under item 6 on the agenda. The shares may also be used for purposes involving an exclusion of subscription rights. They may also be sold on the stock market or by way of an offer to all shareholders, or withdrawn. The shares may also be used to fulfill the rights of Board of Management members to receive shares in Deutsche Telekom AG, which the Supervisory Board has granted to these members as part of the arrangements governing the compensation of the Board of Management, on the basis of a decision by the Supervisory Board to this effect. Under the resolution of the shareholders’ meeting on May 25, 2016, the Board of Management is also authorized to acquire the shares through the use of equity derivatives. On the basis of the authorization by the shareholders’ meeting on May 25, 2016 described above and corresponding authorizations by the shareholders’ meeting on May 12, 2011 and May 24, 2012, 110 thousand shares were acquired in June 2011, 206 thousand shares in September 2011, and 268 thousand shares in January 2013. The total volumes amounted to EUR 2,762 thousand in the 2011 financial year, and EUR 2,394 thousand in the 2013 financial year (excluding transaction costs). This increased the number of treasury shares by 316 thousand and 268 thousand, respectively. Further, 90 thousand shares and 860 thousand shares were acquired in September and October 2015, respectively, for an aggregate amount of EUR 14,787 thousand (excluding transaction costs); these acquisitions increased the number of treasury shares by 950 thousand. No treasury shares were acquired in the reporting period. As part of the Share Matching Plan, a total of 2 thousand treasury shares were transferred free of charge to the custody accounts of eligible participants in the 2012 and 2013 financial years. A further 90 thousand treasury shares were transferred free of charge in the 2014 financial year. An additional 140 thousand treasury shares were transferred in the 2015 financial year. In the 2016 financial year, 232 thousand treasury shares were transferred, in the 2017 financial year, 300 thousand. Transfers of treasury shares to the custody accounts of employees of Deutsche Telekom AG are free of charge. In cases where treasury shares are transferred to the custody accounts of employees of other Group companies, the costs have been transferred at fair value to the respective Group company since the 2016 financial year. A total of 312 thousand shares were reallocated in all months of the reporting year and transferred to the custody accounts of eligible participants of the Share Matching Plan. As of December 31, 2018, disposals of treasury shares resulting from the transfers in the reporting period accounted for less than 0.01 percent, or EUR 798 thousand, of share capital. Gains on disposal arising from transfers of treasury shares amounted to EUR 3,036 thousand. In the reporting year, 81 thousand treasury shares with a fair value of EUR 1,157 thousand were billed to other Group companies. Transfers of treasury shares increased retained earnings by EUR 2,162 thousand and capital reserves by EUR 20 thousand. As part of the acquisition of VoiceStream Wireless Corp., Bellevue, and Powertel, Inc., Bellevue, in 2001, Deutsche Telekom AG issued new shares from authorized capital to a trustee, for the benefit of holders of warrants, options, and conversion rights, among others. These options or conversion rights expired in full in the 2013 financial year. As a result, the trustee no longer had any obligation to fulfill any claims in accordance with the purpose of the deposit. The trust relationship was terminated at the start of 2016 and the deposited shares were transferred free of charge to a custody account of Deutsche Telekom AG. The 18,517 thousand previously deposited shares are accounted for in the same way as treasury shares in accordance with § 272 (1a) HGB. This equates to 0.4 percent, or EUR 48 million, of Deutsche Telekom’s share capital. On the basis of authorization by the shareholders’ meeting on May 25, 2016, the treasury shares acquired free of charge may be used for the same purposes as the treasury shares acquired for a consideration. Voting rights. Each share entitles the holder to one vote. These voting rights are restricted, however, in relation to treasury shares (at December 31, 2018: around 19 million in total). Authorized capital and contingent capital. Authorized capital and contingent capital comprised the following components as of December 31, 2018: (XLS:) Download Amount millions of € No par value shares thousands Purpose 2017 Authorized capital 3,600 1,406,250 Capital increase against cash contribution/contribution in kind (until May 30, 2022) 2018 Contingent capital 1,200 468,750 Servicing convertible bonds and/or bonds with warrants issued on or before May 16, 2023 Transactions with owners The total of EUR -1,389 million shown under transactions with owners is made up of EUR -625 million from the share of equity held by the owners of the parent company, and EUR -764 million from the share held by non-controlling interests. These figures result on the one hand from the share buy-back program launched in December 2017, under which T-Mobile US acquired further ordinary shares for an amount of USD 1.1 billion (EUR 0.9 billion) in the first half of 2018. As a result, Deutsche Telekom holds around 63 percent of the shares in T-Mobile US. On the other hand, in March 2018, Deutsche Telekom exercised its right of first refusal as invited by the Greek privatization authority Hellenic Republic Asset Development Fund (HRADF) and acquired a 5 percent stake in its Greek subsidiary OTE. The transaction was consummated in May 2018 through the acquisition of additional shares in the amount of EUR 0.3 billion. As a result, Deutsche Telekom AG holds around 45 percent of the company’s shares. The effects for the reporting year and the previous year are shown in Deutsche Telekom’s consolidated statement of changes in equity as of December 31, 2018. (XLS:) Download millions of € 2018 2017 Issued capital and reserves attributable to owners of the parent Non-controlling interests Total shareholders’ equity Issued capital and reserves attributable to owners of the parent Non-controlling interests Total shareholders’ equity Changes in the composition of the Group 0 11 11 0 6 6 Other effects 0 11 11 0 6 6 Transactions with owners (625) (764) (1,389) 364 977 1,341 Conversion of T-Mobile US preferred stock 0 0 0 599 1,108 1,707 Share buy-back program T-Mobile US (245) (613) (858) (133) (242) (375) Share buy-back program at OTE (16) (78) (94) 0 0 0 Acquisition of T-Mobile US shares (72) (90) (162) 0 0 0 Acquisition of OTE shares (150) (135) (285) 0 0 0 Other effects (142) 152 10 (102) 111 9 For further information, please refer to the section “Changes in the composition of the Group and other transactions”. Non-controlling interests: total other comprehensive income Total other comprehensive income of non-controlling interests primarily comprises remeasurement effects as part of the acquisition of the OTE group (business combination achieved in stages) totaling EUR 0.4 billion (December 31, 2017: EUR 0.5 billion), currency translation effects of EUR 0.0 billion (December 31, 2017: EUR -0.5 billion), and a remeasurement loss recognized directly in equity in connection with forward-payer swaps in the United States operating segment.