Accounting policies

In accordance with § 115 et seq. of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), Deutsche Telekom AG’s half-year financial report comprises interim consolidated financial statements and an interim Group management report as well as a responsibility statement pursuant to § 297 (2) sentence 4 and § 315 (1) sentence 5 of the German Commercial Code (Handelsgesetzbuch – HGB). The interim consolidated financial statements were prepared in accordance with the IFRS® Accounting Standards (hereinafter referred to as “IFRS Accounting Standards”) issued by the International Accounting Standards Board (IASB) and the IFRIC® Interpretations of the IFRS Interpretations Committee and applicable to interim financial reporting as adopted by the EU as of the reporting date. The interim management report for the Group was prepared in accordance with the German Securities Trading Act.

Statement of compliance

The interim consolidated financial statements for the period ended June 30, 2026 are in compliance with IAS 34 Interim Financial Reporting. As permitted by IAS 34, it has been decided to publish a condensed version compared to the consolidated financial statements as of December 31, 2025. All IFRS Accounting Standards applied by Deutsche Telekom AG have been adopted by the European Commission for use within the EU.

In the opinion of the Board of Management, the reviewed half-year financial report includes all adjustments to be applied that are required to give a true and fair view of the results of operations and financial position of the Group. Please refer to the notes to the consolidated financial statements as of December 31, 2025 for the summary of accounting policies used in the consolidated interim financial statements.

Initial application of standards, interpretations, and amendments in the reporting period

Standards, interpretations, and amendments issued, but not yet to be applied

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which is effective for annual reporting periods beginning on or after January 1, 2027. IFRS 18 replaces IAS 1 Presentation of Financial Statements.

The main changes arising from IFRS 18 are as follows:

• Improvement in the structure and comparability of the statement of profit or loss (income statement) due to the new requirements for classifying income and expenses (including into the “operating,” “investing,” and “financing” categories) and by introducing mandatory subtotals (such as “operating profit/loss” and “profit/loss before financing and income taxes”);

• Disclosures of entity-specific performance indicators defined by management that an entity uses in public communications to communicate management’s view of an aspect of the financial performance of the entity (“management-defined performance measures”, hereinafter referred to as “MPMs”);

• Introduction of additional principles for the aggregation and disaggregation of line items;

• Narrow-scope amendments to the provisions concerning the statement of cash flows, aimed at standardizing the presentation in the statement of cash flows, particularly by eliminating certain presentation options.

IFRS 18 is to be applied retrospectively. Deutsche Telekom expects that the application of IFRS 18 will have material impacts on the presentation of the consolidated financial statements, particularly on the income statement. The following changes are expected in particular:

• Classification of income and expenses: The new classification of income and expenses into the categories mentioned above will change the existing classifications of income and expenses. In the future, the “operating” category, for example, will include certain items arising from foreign currency translation or from measurement effects from derivatives that were previously reported under profit/loss from financial activities. This primarily results from the requirement that the “operating” category not be limited to income and expenses from the entity’s main business activities, but also includes – as a residual category – all income and expenses that do not fall in the other categories, including such income or expenses that are volatile or non-recurring. Furthermore, the item finance costs, which was previously aggregated under profit/loss from financial activities (as the balance of interest income and interest expense), will be presented separately in the “investing” and “financing” categories. The share of profit/loss of associates and joint ventures accounted for using the equity method will also be reclassified from profit/loss from financial activities to the “investing” category.

• New subtotals: The mandatory new subtotals, “operating profit/loss” and “profit/loss before financing and income taxes,” will be presented in the income statement. Deutsche Telekom is also planning to introduce the “investing profit/loss” and “financing profit/loss” subtotals for the new “investing” and “financing” categories, respectively.

• Aggregation and disaggregation: The impact of the new principles for aggregation and disaggregation on the consolidated financial statements and notes is currently being analyzed. One change to the previous presentation will be the requirement to report purchased goodwill separately from intangible assets on the asset side of the statement of financial position.

• Statement of cash flows: In the statement of cash flows prepared in accordance with IAS 7, entities will be required to use the profit/loss from operations subtotal as the starting point for the indirect method of calculating net cash from operating activities. The option Deutsche Telekom previously exercised to record all interest and dividends paid and received in net cash from operating activities is no longer available. Going forward, dividends and interest paid will be reported in net cash used in/from financing activities, while dividends and interest received will be reported in net cash used in/from investing activities.

• MPMs: Deutsche Telekom is analyzing the new requirements related to mandatory disclosures for MPMs. An inventory of potential MPMs has been prepared and evaluated in view of the performance management system described in the combined management report, as well as the entity-specific performance indicators included in other elements of management’s public communications. Based on the information currently available, it is expected that, along with EBIT and EBITDA, the main focus of the MPM disclosure will be adjusted EBITDA AL. This is calculated as EBITDA adjusted for the amortization/depreciation of right-of-use assets, interest expense on lease liabilities, and special factors.

The overall impact of IFRS 18 is currently being analyzed as part of a Group-wide project for implementing the new standard. Given the complexity and the large number of different transactions as well as the relevant transaction volumes, a preliminary estimate of the quantitative effects has not yet been completed. Furthermore, Deutsche Telekom is monitoring current developments and interpretations regarding the guidance on applying IFRS 18 and continuously incorporates them into the implementation process.

Readers are also referred to the DisclaimerDisclaimer at the end of this report as regards the forward-looking statements contained in this section, which reflect the current views of the management of Deutsche Telekom with regard to future events.

For further information on standards, interpretations, and amendments that have been issued but not yet applied, as well as disclosures on the recognition and measurement of items in the statement of financial position and judgements and estimates, please refer to the section “Summary of accounting policies” in the notes to the consolidated financial statements in the 2025 Annual Report.

Changes in accounting policies and changes in the reporting structure

Deutsche Telekom did not make any major changes to its accounting policies in the reporting period. The following change was made to the reporting structure:

Change to the definition of service revenue. Since January 1, 2026, certain wholesale voice transit revenues have no longer been included in service revenues due to their unpredictable or non-recurring nature. Instead, they are recognized under non-service revenues. Prior-year comparatives in both of the affected segments, Germany and Europe, were adjusted retrospectively.

For further information, please refer to the section “Net revenue.”