Board of Management’s assessment of the aggregate risk and opportunity position

The assessment of the aggregate risk position is the outcome of the consolidated analysis of all material risk categories or individual risks. The aggregate risk position has deteriorated compared with the prior year due to a potential expansion of the ban on Chinese network components, the growing threat level imposed by cyberattacks, the enduring pressures on global economic development, and the tense geopolitical situation. Our major challenges particularly include the regulatory factors, economic uncertainties, and intense competition and the associated pressure on profitability in the telecommunications business, as well as the pressure to change arising from new technologies and strategic transformation. At the time of preparing this report, neither our risk management system nor our management could identify any material risks or developments that threaten the continued existence of Deutsche Telekom AG or a significant Group company as a going concern.

We are convinced that we will also be able to master challenges and exploit opportunities in the future without having to take on any unacceptably high risks for our business or for society and the environment. We strive to achieve a good overall balance between opportunities and risks, with the aim of increasing added value for our stakeholders by analyzing and seizing new market opportunities.

For further information on sustainability, please refer to the section “Combined non-financial statement.”