United States For further information on changes resulting from the first-time application of the IFRS 16 “Leases” accounting standard, please refer to the section “Management of the Group.” Customer development (XLS:) Download thousands Dec. 31, 2019 Dec. 31, 2018 Change Change % Dec. 31, 2017 a On July 18, 2019, we entered into an agreement whereby certain T‑Mobile US branded prepaid products are now being offered and distributed by a current MVNO partner. As a result, we included a base adjustment to reduce branded prepaid customers by 616 thousand in the third quarter of 2019. Prospectively, from the agreement date new customer activity associated with these products is recorded within wholesale customers. Mobile customers 86,046 79,651 6,395 8.0 72,585 Branded customersa 67,895 63,656 4,239 6.7 58,715 Branded postpaid 47,034 42,519 4,515 10.6 38,047 Branded prepaya 20,860 21,137 (277) (1.3) 20,668 Wholesale customers 18,152 15,995 2,157 13.5 13,870 Total At December 31, 2019, the United States operating segment (T‑Mobile US) had 86.0 million customers, compared to 79.7 million customers at December 31, 2018. Compared to the year ended December 31, 2018, net customer additions remained stable at 7.0 million for the year ended December 31, 2019, due to the factors described below. Branded customers. Branded postpaid net customer additions remained stable at 4.5 million for the year ended December 31, 2019. The increase resulted from higher branded postpaid phone net customer additions primarily due to lower churn, and higher branded postpaid other net customer additions primarily due to the higher number of connected devices; partially offset by higher deactivations from a growing customer base. Branded prepay net customer additions were 339 thousand for the year ended December 31, 2019, compared to 460 thousand branded prepay net customer additions for the year ended December 31, 2018. The decrease in net customer additions was primarily due to continued competitor promotional activities in the marketplace, partially offset by lower churn. Wholesale customers. Wholesale net customer additions were 2.2 million for the year ended December 31, 2019, compared to 2.1 million for the year ended December 31, 2018. The increase was due primarily to higher additions from the continued success of our M2M and MVNO partnerships. Development of operations (XLS:) Download millions of € 2019 2018 Change Change % 2017 a Comparatives for 2018 were calculated on a pro forma basis for the redefined key performance indicators resulting from the introduction of the IFRS 16 accounting standard. TOTAL REVENUE 40,420 36,522 3,898 10.7 35,736 Profit from operations (EBIT) 5,488 4,634 854 18.4 5,930 EBIT margin % 13.6 12.7 16.6 Depreciation, amortization and impairment losses (7,777) (5,294) (2,483) (46.9) (5,019) EBITDA 13,265 9,928 3,337 33.6 10,949 EBITDA ALa 10,590 9,924 666 6.7 n.a. Special factors affecting EBITDA (544) (160) (384) n.a. 1,633 EBITDA (adjusted for special factors) 13,809 10,088 3,721 36.9 9,316 EBITDA AL (ADJUSTED FOR SPECIAL FACTORS)a 11,134 10,084 1,050 10.4 n.a. EBITDA AL margin (adjusted for special factors)a % 27.5 27.6 n.a. CASH CAPEX (6,369) (4,661) (1,708) (36.6) (11,932) Total revenue Total revenue for the United States operating segment of EUR 40.4 billion in 2019 increased by 10.7 percent, compared to EUR 36.5 billion in 2018. In U.S. dollars, T‑Mobile US’ total revenues increased by 5.0 percent year-over-year due primarily to an increase in service revenues driven by growth in our average branded customer base from the continued growth in existing and greenfield markets, including the growing success of new customer segments and rate plans such as Un-limited 55+, Military, Business, and Essentials, and growth in other connected devices and wearables, specifically the Apple watch; partially offset by lower branded postpaid phone Average Revenue per User (ARPU). EBITDA AL, adjusted EBITDA AL In euros, adjusted EBITDA AL increased by 10.4 percent to EUR 11.1 billion in 2019, compared to EUR 10.1 billion in 2018. Adjusted EBITDA AL margin of 27.5 percent in 2019 remained relatively flat compared to 2018. In U.S. dollars, adjusted EBITDA AL increased by 4.7 percent during the same period. Adjusted EBITDA AL increased due primarily to higher service revenues, as further discussed above. These increases were partially offset by higher employee-related costs, costs related to outsourced functions, commission costs including a USD 0.3 billion increase related to amortization expense from costs that were capitalized upon the adoption of IFRS 15 on January 1, 2018, and the impact from hurricane-related reimbursements of USD 0.2 billion received in 2018. There was no significant impact from hurricanes in 2019. EBITDA AL for 2019 included special factors of EUR -0.5 billion compared to special factors of EUR -0.2 billion in 2018. The change in special factors was primarily due to an increase in expenses associated with the proposed Sprint transaction. Overall, EBITDA AL increased by 6.7 percent to EUR 10.6 billion in 2019, compared to EUR 9.9 billion in 2018, due to the factors described above, including special factors. EBIT EBIT increased to EUR 5.5 billion in 2019, compared to EUR 4.6 billion in 2018, driven by higher EBITDA AL as discussed above. Depreciation and amortization expense increased due to the application of IFRS 16 as of January 1, 2019, which results in higher depreciation charges for capitalized right-of-use-assets previously recognized as operating expenses for operating leases. Excluding the impacts of IFRS 16, depreciation increased due to network expansion, including the continued deployment of low band spectrum, including 600 MHz, and the nationwide launch of our 5G network; partially offset by lower depreciation expense resulting from a lower total number of customer devices under lease. Cash capex Cash capex increased to EUR 6.4 billion in 2019, compared to EUR 4.7 billion in 2018, primarily due to growth in network build-out as we continued deployment of low band spectrum, including 600 MHz, and the nationwide launch of our 5G network, and an increase in spectrum licenses acquired. schließen Postpaid Customers who pay for communication services after receiving them (usually on a monthly basis). schließen Prepay/prepaid In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations. schließen M2M - Machine to Machine Communication between machines. The information is automatically sent to the recipient. For example, in an emergency, alarm systems automatically send a signal to security or the police. schließen Service revenues Revenues generated with mobile customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues. schließen 5G New communications standard, which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things – rollout starting 2020.