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10 Investments accounted for using the equity method

Deutsche Telekom publishes the following information on significant investments included in the consolidated financial statements using the equity method:

 

Deutsche Telekom share

Percentage of voting rights

Assigned to segment

Fair value of the investment, if a listed market price is available

 

 

 

 

 

 

 

 

Name and registered office

Dec. 31, 2021 
%

Dec. 31, 2020 
%

Dec. 31, 2021 
%

Dec. 31, 2020 
%

 

Dec. 31, 2021 
millions of €

Dec. 31, 2020 
millions of €

Hrvatske telekomunikacije d.d. Mostar, Mostar, Bosnia-Herzegovinaa

39.10

39.10

39.10

39.10

Europe

28

30

Stratospheric Platforms Ltd., Isle of Man, United Kingdom

38.05

38.05

38.05

38.05

Group Development

n.a.

n.a.

T‑Mobile USA Tower LLC, Wilmington, United Statesb

100.00

100.00

100.00

100.00

United States

n.a.

n.a.

T‑Mobile West Tower LLC, Wilmington, United Statesb

100.00

100.00

100.00

100.00

United States

n.a.

n.a.

Cellnex Netherlands B.V., Utrecht, Netherlandsc

37.65

n.a.

37.65

n.a.

Group Development

n.a.

n.a.

a

Indirect shareholding via Hrvatski Telekom d.d., Croatia (Deutsche Telekom AG’s share: 52.17 %).

b

Indirect shareholding via T-Mobile US, Inc., United States (Deutsche Telekom AG’s share: 46.75 %).

c

Indirect shareholding via Digital Infrastructure Vehicle II SICAF-RAIF, Luxembourg (Deutsche Telekom AG’s share: 66.67 %). The shareholding has been included in Deutsche Telekom’s consolidated financial statements using the equity method since June 1, 2021.

Description of the nature of the activities of the joint arrangement or associate

Hrvatske telekomunikacije d.d. (HT Mostar d.d.) provides mobile and fixed-network communications services in Bosnia-Herzegovina.

Stratospheric Platforms Ltd. develops new communications technologies for stationary and mobile use.

T‑Mobile USA Tower LLC and T‑Mobile West Tower LLC are structured entities founded by T‑Mobile US in each of which it holds a 100 % stake for the purpose of contributing cell sites in accordance with a framework agreement signed in 2012 between T‑Mobile US and Crown Castle International Corp., Houston, United States, concerning the leasing and use of the cell sites. The sole right to continue to use and lease out these sites was transferred to Crown Castle. T‑Mobile US continues to operate its mobile equipment on these cell towers and, to this end, leases back the required capacity from Crown Castle. Previously unused infrastructure is thus available for Crown Castle to lease to third parties. In return, the owners of the land on which the cell towers are built will no longer receive lease payments from T‑Mobile US for those cell towers that were contributed to the two associates and those companies that were disposed of. Both entities were deconsolidated as of the date of the closing of the transaction in 2012, because Crown Castle independently operates the cell towers, generates revenues from leasing out the sites for an average of 27 years, and determines the finance and business activities of both entities that are relevant for consolidation purposes. It is expected that the leasing of tower space will allow Crown Castle to generate sufficient ongoing profits and cash flows to be able to meet its contractual obligations. Thus Deutsche Telekom has only a significant influence and includes these companies in the consolidated financial statements as associates. Under certain conditions, T‑Mobile US will continue to be held liable for any default in the lease payment by Crown Castle to the owners of the underlying land of the cell sites. The agreement includes an extremely low maximum guarantee amount for Deutsche Telekom, since in the unlikely event that this case occurs, T‑Mobile US could take over the further use of the relevant cell sites or alternatively terminate the contracts with the owners of the cell site land at short notice. At closing, T‑Mobile US established an immaterial cash reserve in the entities sufficient to fund the payment of ongoing administrative expenses not payable by Crown Castle. Aside from the guarantee and the payment of administrative expenses, there is no other funding obligation by T‑Mobile US.

Cellnex Netherlands B.V. (Cellnex NL) operates telecommunications infrastructure in the Netherlands.

For further information on the acquisition of the stake in Cellnex NL in connection with the combination of the cell tower business in the Netherlands and the set-up of an infrastructure fund, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”

The following tables provide summarized financial information on the main companies included in the consolidated financial statements and accounted for using the equity method. The data is not based on the stakes attributable to Deutsche Telekom AG, but represents the shareholdings on an assumed 100 % basis.

Summarized financial information on the main entities accounted for using the equity method

millions of €

 

 

 

 

 

HT Mostar d.d.

Stratospheric Platforms Ltd.a

 

 

 

 

 

 

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Current assets

38

45

5

11

Of which: cash and cash equivalents

10

12

5

11

Non-current assets

173

165

0

5

Current liabilities

26

22

1

3

Non-current liabilities

15

18

0

0

Net revenue

39

38

0

0

Profit (loss)

0

0

(14)

(24)

Other comprehensive income

0

0

0

0

Total comprehensive income

0

0

(14)

(24)

Depreciation, amortization and impairment losses

(10)

(9)

0

0

Dividends paid to Deutsche Telekom

0

0

0

0

a

As financial data of Stratospheric Platforms Ltd. as of December 31, 2021 was not yet available to Deutsche Telekom at the date of preparation, the company’s annual financial statements as of December 31, 2020 were used as a basis for the summarized financial information. The comparatives as of December 31, 2020 were similarly based on the company’s annual financial statements as of December 31, 2019.

millions of €

 

 

 

 

 

T-Mobile USA Tower LLC

T-Mobile West Tower LLC

 

 

 

 

 

 

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Current assets

0

0

0

0

Non-current assets

138

117

184

157

Current liabilities

0

0

0

0

Non-current liabilities

0

0

0

0

Net revenue

0

0

0

0

Profit (loss)

0

0

0

0

Other comprehensive income

0

0

0

0

Total comprehensive income

0

0

0

0

Dividends paid to Deutsche Telekom

0

0

0

0

millions of €

 

 

 

Cellnex NLa

 

 

 

 

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Current assets

60

n.a.

Of which: cash and cash equivalents

3

n.a.

Non-current assets

1,622

n.a.

Current liabilities

52

n.a.

Of which: financial liabilities

2

n.a.

Non-current liabilities

571

n.a.

Of which: financial liabilities

250

n.a.

Net revenue

37

n.a.

Profit (loss)

(2)

n.a.

Other comprehensive income

0

n.a.

Total comprehensive income

(2)

n.a.

Depreciation, amortization and impairment losses

(22)

n.a.

Dividends paid to Deutsche Telekom

0

n.a.

a

As financial data of Cellnex NL as of December 31, 2021 was not yet available in its entirety to Deutsche Telekom at the date of preparation, the interim financial statements of Cellnex NL as of June 30, 2021 were used as a basis for the summarized financial information and for the reconciliation statement to the carrying amount reported in Deutsche Telekom’s consolidated statement of financial position.

Reconciliation to the carrying amount included in the consolidated statement of financial position

millions of €

 

 

 

 

 

HT Mostar d.d.

Stratospheric Platforms Ltd.a

 

 

 

 

 

 

2021

2020

2021

2020

Net assets as of January 1

170

170

14

20

Profit (loss)

0

0

(14)

(24)

Other comprehensive income

0

0

0

0

Share-based payment

0

0

2

0

Change in interest without loss of control

0

0

0

0

Dividends paid

0

0

0

0

Capital increase

0

0

3

17

Exchange rate effects

1

0

(1)

1

Net assets as of December 31b

171

170

4

14

Share of net assets attributable to Deutsche Telekom as of December 31b

67

66

2

5

Goodwill – equity method

0

0

56

55

Impairment

0

0

(58)

0

Other reconciliation effects

(17)

(16)

0

0

Carrying amount as of December 31

50

50

0

60

a

As financial data of Stratospheric Platforms Ltd. as of December 31, 2021 was not yet available to Deutsche Telekom at the date of preparation, the company’s annual financial statements as of December 31, 2020 were used as a basis for the summarized financial information and for the reconciliation statement to the carrying amount reported in Deutsche Telekom’s consolidated statement of financial position. The resulting effects for the extrapolation of the carrying amount as of December 31, 2021 were estimated and are included under other reconciliation effects. Similarly, the comparatives as of December 31, 2020 are summarized financial information determined on the basis of the company’s annual financial statements as of December 31, 2019 and the reconciliation statement.

b

The figures for net assets and the share of the net assets of Stratospheric Platforms Ltd. relate to December 31, 2020 and December 31, 2019, respectively.

millions of €

 

 

 

 

 

T-Mobile USA Tower LLC

T-Mobile West Tower LLC

 

 

 

 

 

 

2021

2020

2021

2020

Net assets as of January 1

117

118

157

160

Profit (loss)

11

10

14

11

Other comprehensive income

0

0

0

0

Dividends paid

0

0

0

0

Exchange rate effects

10

(10)

14

(14)

Net assets as of December 31

138

117

185

157

Share of net assets attributable to Deutsche Telekom as of December 31

138

117

185

157

Adjustment of carrying amount

0

0

0

0

Other reconciliation effects

0

0

0

0

Carrying amount as of December 31

138

117

185

157

millions of €

 

 

 

Cellnex NLa

 

 

 

 

2021

2020

Net assets as of January 1b

0

n.a.

Net assets as of date of inclusion in the consolidated financial statements using the equity methodb, c

1,058

n.a.

Profit (loss)

0

n.a.

Other comprehensive income

0

n.a.

Dividends paid

0

n.a.

Net assets as of December 31c

1,058

n.a.

Share of net assets attributable to Deutsche Telekom as of December 31c

398

n.a.

Other reconciliation effects

(1)

n.a.

Carrying amount as of December 31

397

n.a.

a

As financial data of Cellnex NL as of December 31, 2021 was not yet available in its entirety to Deutsche Telekom at the date of preparation, the interim financial statements of Cellnex NL as of June 30, 2021 were used as a basis for the summarized financial information and for the reconciliation statement to the carrying amount reported in Deutsche Telekom’s consolidated statement of financial position. The resulting effects for the extrapolation of the carrying amount as of December 31, 2021 were estimated and are included under other reconciliation effects.

b

The shareholding has been included in Deutsche Telekom’s consolidated financial statements using the equity method since June 1, 2021.

c

The purchase price allocation related to the acquisition had not yet been completed as of December 31, 2021. The net assets of Cellnex NL and the share of net assets attributable to Deutsche Telekom are based on preliminary carrying amounts determined on the basis of the interim financial statements of Cellnex NL as of June 30, 2021.

In the 2021 and 2020 financial years, the consolidated financial statements did not include any unrecognized losses in connection with investments accounted for using the equity method.

Summarized aggregate financial information on non-significant entities accounted for using the equity method

The figures relate to the interests attributable to Deutsche Telekom.

millions of €

 

 

 

 

 

Joint ventures

Associates

 

 

 

 

 

 

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Dec. 31, 2021/
2021

Dec. 31, 2020/
2020

Total carrying amounts

56

42

112

117

Total share in profit (loss)

(34)

(16)

(5)

(12)

Other comprehensive income

0

0

0

0

Total comprehensive income

(34)

(16)

(5)

(12)