Selected notes to the consolidated statement of financial position

Trade receivables

At EUR 16.8 billion, trade receivables decreased by EUR 0.1 billion against the 2025 year-end level, with receivables declining in the Germany operating segment. By contrast, receivables increased slightly in the Europe operating segment. In the United States operating segment, receivables remained more or less on a par with the level as of December 31, 2025, despite an increasing effect from exchange rate effects.

Contract assets

The carrying amount of contract assets increased from EUR 3.1 billion to EUR 3.2 billion. Contract assets relate to receivables that have not yet legally come into existence, which arise from the earlier – as compared to billing – recognition of revenue, in particular from the sale of goods and merchandise under long-term multiple-element arrangements (e.g., mobile contract plus handset). Receivables from long-term construction contracts are also recognized under contract assets.

Inventories

The carrying amount of inventories remained unchanged at the 2025 year-end level of EUR 2.9 billion. The main reducing factors were shop closures and the sale of older mobile terminal equipment in the United States operating segment. By contrast, exchange rate effects, primarily from the translation from U.S. dollars into euros, increased the carrying amount.

Intangible assets

The carrying amount of intangible assets increased by EUR 1.7 billion compared to December 31, 2025 to EUR 135.3 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 2.5 billion. Investments also increased it by EUR 1.4 billion, with EUR 0.1 billion of this relating to investments in mobile spectrum. Depreciation, amortization and impairment losses of EUR 1.7 billion reduced the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 0.4 billion. This related to agreements concluded in the reporting period for the exchange of spectrum licenses in the United States operating segment.

The following agreements will have an impact on the presentation of Deutsche Telekom’s results of operations and financial position in the future:

On May 30, 2025, T‑Mobile US entered into an agreement on the sale of 800 MHz spectrum licenses to affiliates of Grain Management, LCC (Grain) in exchange for cash consideration of USD 2.9 billion (EUR 2.5 billion) and the receipt of Grain’s 600 MHz spectrum licenses. It has been further agreed that T‑Mobile US may additionally receive a share of future proceeds from transactions entered into by Grain that monetize the 800 MHz spectrum licenses, subject to certain terms and conditions. Since May 30, 2025, the licenses concerned have been reported as held for sale with a carrying amount of EUR 3.1 billion. The transaction is subject to regulatory approvals by the FCC and certain other customary closing conditions, and is expected to be concluded in 2026. The proceeds from the sale are expected to be immaterial for the results of operations of the Group.

On September 12, 2023, T‑Mobile US agreed with U.S. cable network operator Comcast Corporation (Comcast) to acquire spectrum in the 600 MHz band in exchange for total cash consideration of between USD 1.2 billion and USD 3.3 billion (EUR 1.0 billion and EUR 2.8 billion), depending on the number of underlying licenses. The final purchase price will be determined at the time the parties make the required transfer filings with the FCC. At the same time, T‑Mobile US and Comcast have concluded exclusive leasing arrangements. The leasing rights for T‑Mobile US will apply for at least two years, regardless of whether Comcast decides to remove part of its licenses from the purchase agreement. On January 13, 2025, T‑Mobile US and Comcast entered into an amendment to the license purchase agreement pursuant to which T‑Mobile US will acquire additional spectrum. As a consequence of the amendment, the total cash consideration amounts to between USD 1.2 billion and USD 3.4 billion (EUR 1.0 billion and EUR 3.0 billion). The acquisition of a portion of the spectrum licenses with a value of approximately USD 45 million (EUR 39 million) is expected in 2026. The acquisition of the remaining licenses is then expected to close in the first half of 2028.

For further information, please refer to the section “Other financial obligations.”

Property, plant and equipment

The carrying amount of property, plant and equipment decreased by EUR 0.3 billion compared with December 31, 2025 to EUR 64.5 billion. Depreciation and impairment losses reduced the carrying amount by EUR 3.2 billion. The carrying amount was increased by additions of EUR 2.4 billion, primarily in connection with the upgrade and build-out of the network (broadband, fiber-optic, and mobile infrastructure), as well as exchange rate effects of EUR 0.6 billion, mainly from the translation of U.S. dollars into euros.

Right-of-use assets

The carrying amount of the right-of-use assets decreased by EUR 0.2 billion compared to December 31, 2025 to EUR 28.4 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 1.6 billion. By contrast, the carrying amount was increased by additions of EUR 0.9 billion and exchange rate effects of EUR 0.5 billion, mainly from the translation of U.S. dollars into euros.

Capitalized contract costs

As of March 31, 2026, the carrying amount of capitalized contract costs was up by EUR 0.1 billion against the level of December 31, 2025 to EUR 4.1 billion. The capitalized contract costs primarily relate to the United States, Germany, and Europe operating segments.

Investments accounted for using the equity method

The carrying amount of investments accounted for using the equity method increased compared with December 31, 2025 from EUR 11.1 billion to EUR 11.2 billion. It was increased by a capital increase in the investment in GlasfaserPlus and exchange rate effects, primarily from the translation of U.S. dollars into euros, while the proportionate losses from T-Mobile US’ investments in Metronet and Lumos in the reporting period had a decreasing effect.

Other financial assets

The carrying amount of current and non-current other financial assets decreased by EUR 0.2 billion compared to December 31, 2025 to EUR 8.3 billion.

The net total of originated loans and receivables decreased by EUR 0.3 billion to EUR 5.6 billion. This decrease in the carrying amount was mainly due to lower receivables from collateral agreements as surety for credit risks in connection with forward-payer swaps due to normal fluctuations in fair value (EUR 0.2 billion), and payments received from GD tower companies in connection with distributions from shareholders’ equity (EUR 0.2 billion).

For information on cash collateral deposited and on derivatives, please refer to the section “Disclosures on financial instruments.”

Other assets

The carrying amount of current and non-current other assets increased by EUR 0.9 billion to EUR 5.1 billion. As of March 31, 2026, this included various advance payments, totaling EUR 3.8 billion (December 31, 2025: EUR 3.5 billion), mainly relating to advance payments for maintenance, repairs, and in connection with agreements on services for certain mobile communications and fixed-network equipment that do not fall under the scope of IFRS 16. Non-current other assets also included a defined benefit asset of EUR 0.7 billion as of March 31, 2026 (December 31, 2025: EUR 0.2 billion). Receivables from other taxes increased by EUR 0.2 billion.

For further information on the defined benefit asset, please refer to the section “Provisions for pensions and other employee benefits.”

Non-current assets and disposal groups held for sale

The carrying amount of non-current assets and disposal groups held for sale as of March 31, 2026 was EUR 3.7 billion, up EUR 0.5 billion on the level of December 31, 2025. EUR 0.4 billion of the increase compared with December 31, 2025 resulted from agreements concluded in the reporting period for the exchange of spectrum licenses in the United States operating segment. The carrying amount also included spectrum licenses of EUR 3.1 billion in connection with the sale agreed between T‑Mobile US and Grain.

For further information on the agreements between T‑Mobile US and Grain, please refer to the section “Intangible assets.”

Financial liabilities and lease liabilities

The following table shows the composition and maturity structure of financial liabilities and lease liabilities as of March 31, 2026:

The carrying amount of current and non-current financial liabilities increased by EUR 2.5 billion compared with year-end 2025 to EUR 112.8 billion, primarily due to the factors described below. These factors include exchange rate effects that increased the carrying amount by EUR 1.8 billion, primarily from the translation of U.S. dollars into euros.

The carrying amount of bonds and other securitized liabilities increased by EUR 1.8 billion to EUR 93.8 billion. Exchange rate effects increased the carrying amount of bonds and other securitized liabilities by EUR 1.6 billion. The carrying amount was also increased by USD bonds issued by T‑Mobile US in the reporting period with a volume of USD 2.0 billion (EUR 1.7 billion), with terms ending between 2036 and 2056 and bearing interest of between 5.00 % and 5.85 %, and by EUR bonds with a volume of EUR 2.5 billion with terms ending between 2032 and 2038 and bearing interest of between 3.20 % and 3.90 %. The carrying amount was also increased by the issue of a CHF bond of CHF 0.3 billion (EUR 0.3 billion) by Deutsche Telekom AG, with a term ending in 2041 and bearing interest of 1.57 %. The carrying amount was reduced by scheduled repayments of USD bonds of USD 2.8 billion (EUR 2.4 billion) by T‑Mobile US and of a EUR bond of EUR 0.4 billion of Deutsche Telekom AG, as well as by the early repayment of a USD bond of USD 1.5 billion (EUR 1.3 billion) by T‑Mobile US. In addition, the carrying amount decreased by EUR 0.1 billion in connection with measurement effects from derivatives with a hedging relationship, the offsetting entry for which is posted under bonds and other securitized liabilities.

Liabilities collateralized by existing and anticipated trade receivables (including asset-backed securities) of EUR 2.6 billion (December 31, 2025: EUR 1.7 billion) are liabilities of T‑Mobile US. Existing and anticipated trade receivables were provided as collateral for these liabilities, hence they constitute a separate class of financial instruments. Issues in the reporting period in the amount of EUR 1.3 billion when translated into euros increased the carrying amount. Exchange rate effects also increased the carrying amount by EUR 0.1 billion. By contrast, early repayments of EUR 0.4 billion when translated into euros had a decreasing effect on the carrying amount. As of the reporting date, trade receivables with a carrying amount of EUR 2.3 billion when translated into euros (December 31, 2025: EUR 2.2 billion) were pledged as collateral for these bonds.

The carrying amount of liabilities to banks remained unchanged against December 31, 2025 at EUR 4.4 billion.

The liabilities with the right of creditors to priority repayment in the event of default of EUR 0.7 billion (December 31, 2025: EUR 0.7 billion) relate primarily to bonds issued by Sprint. Collateral was provided for these bonds, hence they constitute a separate class of financial instruments. The carrying amount was reduced by repayments made in the reporting period in the amount of EUR 0.1 billion when translated into euros. At the reporting date, cash and cash equivalents with a carrying amount of EUR 76 million (December 31, 2025: EUR 69 million) when translated into euros were pledged as collateral for these bonds.

The carrying amount of other interest-bearing liabilities decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 5.8 billion. In the Germany operating segment, the carrying amount was decreased by scheduled repayments of loans for the acquisition of 5G licenses (EUR 0.1 billion) and by repayments of liabilities for the acquisition of broadcasting rights (EUR 0.1 billion). In connection with cash collateral received for derivative financial instruments – primarily forward-payer swaps – the carrying amount of other interest-bearing liabilities also decreased by EUR 0.1 billion. By contrast, exchange rate effects increased the carrying amount of other interest-bearing liabilities by EUR 0.1 billion.

The carrying amount of other non-interest-bearing liabilities increased by EUR 0.1 billion to EUR 2.0 billion, due in part to exchange rate effects.

The carrying amount of derivative financial liabilities decreased by EUR 0.1 billion compared with December 31, 2025 to EUR 2.4 billion. It was mainly reduced by measurement effects from cross-currency swaps, which decreased the carrying amount by EUR 0.1 billion.

For further information on derivative financial liabilities, please refer to the section “Disclosures on financial instruments.”

The carrying amount of current and non-current lease liabilities decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 36.2 billion. In the Germany and United States operating segments, lease liabilities decreased by EUR 0.1 billion in each case. Lease liabilities in the United States operating segment declined by EUR 0.7 billion, mainly due to the lower number of new contracts and the decommissioning of defunct cell sites and network technology. Exchange rate effects of EUR 0.6 billion reduced the carrying amount.

Trade and other payables

The carrying amount of trade and other payables decreased by EUR 0.2 billion to EUR 9.4 billion. This was due to lower liabilities in the United States and Europe operating segments. Liabilities increased in the Germany and Systems Solutions operating segments. Exchange rate effects, in particular from the translation from U.S. dollars into euros, also increased the carrying amount.

Provisions for pensions and other employee benefits

The carrying amount of provisions for pensions and other employee benefits decreased by EUR 0.1 billion compared with December 31, 2025 to EUR 1.8 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.4 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets and the increase in the discount rate compared with December 31, 2025. Benefits paid directly by the employer in the reporting period of EUR 0.2 billion also contributed to the reduction in the carrying amount. The EUR 0.5 billion increase in the pension surplus at Deutsche Telekom AG compared with December 31, 2025 had an increasing effect, which resulted in an additional defined benefit asset under other non-current assets.

For further information on the defined benefit asset, please refer to the section “Other assets.”

Current and non-current other provisions

The carrying amount of current and non-current other provisions increased by EUR 0.1 billion compared with year-end 2025 to EUR 8.0 billion, mainly due to exchange rate effects, primarily from the translation of U.S. dollars into euros. Provisions for termination benefits increased in particular in connection with the 2025–2026 Workforce Transformation at T‑Mobile US. By contrast, other provisions for personnel costs and the provisions for sales and procurement support decreased in connection with the bonuses paid out to employees and sales partners in the United States operating segment.

Other liabilities

The carrying amount of current and non-current other liabilities increased by EUR 0.4 billion to EUR 5.3 billion, mainly due to an increase in liabilities from other taxes by EUR 0.4 billion. By contrast, liabilities in connection with publicly funded projects in the Germany operating segment decreased by EUR 0.1 billion.

Current and non-current contract liabilities

The carrying amount of current and non-current contract liabilities increased by EUR 0.1 billion compared with December 31, 2025 to EUR 3.7 billion. These relate to deferred revenues.

Shareholders’ equity

The carrying amount of shareholders’ equity decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 92.0 billion. Transactions with owners reduced shareholders’ equity by EUR 4.3 billion, and related mainly to the buy-back of shares by T‑Mobile US. The carrying amount was also reduced by Deutsche Telekom AG’s 2026 share buy-back program with share buy-backs of EUR 0.5 billion. Furthermore, cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period, reduced shareholders’ equity by EUR 0.4 billion, while profit of EUR 3.1 billion and capital increases from share-based payments of EUR 0.2 billion had an increasing effect. Other comprehensive income also increased the carrying amount by EUR 1.7 billion, mainly as a result of currency translation effects of EUR 1.2 billion recognized directly in equity and the remeasurement of defined benefit pension plans accounting for EUR 0.4 billion, as well as gains from hedging instruments of EUR 0.1 billion.

For further information on the share buy-back programs of Deutsche Telekom AG and T‑Mobile US, please refer to the section “Other transactions that had no effect on the composition of the Group.”

The following table shows the changes in the composition of the Group and the development of transactions with owners: