Selected notes to the consolidated statement of financial position

Trade receivables

At EUR 16.7 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 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 exchange rate effect.

Contract assets

The carrying amount of contract assets remained unchanged at the 2025 year-end level of EUR 3.1 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 3.2 billion compared to December 31, 2025 to EUR 136.8 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 3.7 billion. Investments also increased it by EUR 3.3 billion, with EUR 0.6 billion of this relating to investments in mobile spectrum, primarily in the United States operating segment. Amortization and impairment losses of EUR 3.3 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. Disposals reduced the carrying amount by EUR 0.1 billion.

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 the 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 3.2 billion. The transaction is subject to regulatory approvals by the FCC and certain other customary closing conditions. The transaction, including certain changes to the 800 MHz spectrum licenses, was approved by the FCC on July 1, 2026 (after the reporting period), and is expected to be concluded in the third quarter of 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 2.9 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). On June 2, 2026, the acquisition of a portion of the spectrum licenses with a value of USD 46 million (EUR 40 million) was concluded. The acquisition of the remaining licenses is expected to be concluded in the first half of 2028.

In June 2026, T‑Mobile US was announced the winning bidder of 102 licenses in the auction for AWS-3 band spectrum (Auction 113) for an aggregate purchase price of around EUR 0.2 billion (USD 0.3 billion). The purchase price, taking into account the cash deposit previously made to the FCC, was paid in two tranches in July 2026 (after the reporting period) and is included in the notes to the consolidated financial statements as of June 30, 2026 under other financial obligations. The timing of when the licenses will be issued will be determined by the FCC after all post-auction procedures have been completed.

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 0.2 billion compared with December 31, 2025 to EUR 64.6 billion. Depreciation and impairment losses reduced the carrying amount by EUR 6.1 billion and disposals by EUR 0.1 billion. The carrying amount was increased by additions of EUR 5.1 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 0.9 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 2.9 billion. Disposals reduced the carrying amount by EUR 0.1 billion. By contrast, the carrying amount was increased by additions of EUR 2.1 billion and exchange rate effects of EUR 0.7 billion, mainly from the translation of U.S. dollars into euros.

Capitalized contract costs

As of June 30, 2026, the carrying amount of capitalized contract costs was up by EUR 0.2 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 remained unchanged against the level of December 31, 2025 at EUR 11.1 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, and dividend payments by the GD tower companies 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 8.4 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by a total of EUR 0.1 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).

The carrying amount of derivatives with a hedging relationship decreased by EUR 0.1 billion to EUR 0.7 billion. This decrease was mainly attributable to the rating-related replacement of existing hedging derivatives with adjusted cross-currency swaps, in consequence of the raising of the credit ratings for Deutsche Telekom AG by Standard & Poorʼs (S&P) and Fitch in May and June 2026.

Increases in fair value resulted in an increase in the carrying amounts of equity instruments by 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 0.6 billion to EUR 4.8 billion. As of June 30, 2026, this included various advance payments, totaling EUR 3.6 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 plan asset of EUR 0.5 billion as of June 30, 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 June 30, 2026 was EUR 3.7 billion, up EUR 0.5 billion compared with December 31, 2025. EUR 0.4 billion of the increase 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 3.2 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 June 30, 2026:

The carrying amount of current and non-current financial liabilities increased by EUR 3.6 billion compared with year-end 2025 to EUR 114.0 billion, primarily due to the factors described below. These factors include exchange rate effects that increased the carrying amount by EUR 2.5 billion, primarily from the translation of U.S. dollars into euros.

The carrying amount of bonds and other securitized liabilities increased by EUR 2.9 billion to EUR 94.9 billion. Exchange rate effects increased the carrying amount of bonds and other securitized liabilities by EUR 2.2 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 following issues by Deutsche Telekom AG: EUR bonds of EUR 1.5 billion with terms ending between 2033 and 2038 and bearing interest of 3.375 % to 3.875 %, CHF bonds of CHF 0.6 billion (EUR 0.6 billion) with terms ending between 2034 and 2041 and bearing interest of 1.3625 % to 1.63 %, an HKD bond of HKD 1.0 billion (EUR 0.1 billion) with a term ending in 2036 and bearing interest of 4.005 %, as well as a CNY bond of CNY 0.8 billion (EUR 0.1 billion) with a term ending in 2031 and bearing interest of 1.995 %. The carrying amount was reduced by scheduled repayments of USD bonds of USD 4.0 billion (EUR 3.4 billion) by T‑Mobile US, a EUR bond of EUR 0.4 billion of Deutsche Telekom AG, and a EUR bond of EUR 0.6 billion of Deutsche Telekom International Finance B.V. T‑Mobile US repaid a USD bond with a volume of USD 1.5 billion (EUR 1.3 billion) prematurely.

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. Issues of commercial paper in the amount of EUR 0.4 billion when translated into euros increased the carrying amount. By contrast, it was reduced by the scheduled repayment of an EIB loan by Deutsche Telekom AG in the amount of EUR 0.5 billion.

The liabilities with the right of creditors to priority repayment in the event of default of EUR 0.6 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 73 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 remained unchanged against the level of December 31, 2025 at EUR 6.0 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). By contrast, exchange rate effects increased the carrying amount by EUR 0.1 billion.

The carrying amount of other non-interest-bearing liabilities increased by EUR 0.3 billion compared with December 31, 2025 to EUR 2.1 billion. This increase was mainly due to the increase of EUR 0.2 billion in liabilities from dividend payments to non-controlling interests by individual national companies in the Europe operating segment.

The carrying amount of derivative financial liabilities decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 2.3 billion. It was mainly reduced by measurement effects from interest rate swaps and 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 0.3 billion compared with December 31, 2025 to EUR 36.1 billion. Lease liabilities in the Germany and United States operating segments decreased by EUR 0.2 billion and EUR 0.1 billion, respectively. Lease liabilities in the United States operating segment declined by EUR 1.0 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 0.9 billion reduced the carrying amount.

Trade and other payables

The carrying amount of trade and other payables decreased by EUR 0.4 billion to EUR 9.2 billion. This decrease was in spite of an increasing effect from exchange rate effects, in particular from the translation of U.S. dollars into euros, and due to lower liabilities in the United States and Europe operating segments. Liabilities increased in the Germany and Systems Solutions operating segments.

Provisions for pensions and other employee benefits

The carrying amount of provisions for pensions and other employee benefits decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 1.7 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.3 billion to be recognized directly in equity, mainly due to the increase in the fair values of plan assets compared with December 31, 2025. Benefits paid directly by the employer in the reporting period of EUR 0.3 billion also contributed to the reduction in the carrying amount. The EUR 0.3 billion increase in the pension surplus at Deutsche Telekom AG compared with December 31, 2025 had an increasing effect, which resulted in an additional plan 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 decreased by EUR 0.2 billion compared with year-end 2025 to EUR 7.7 billion. Other provisions for personnel costs decreased by EUR 0.5 billion, mainly in connection with the performance-based remuneration components for the prior year paid out to employees in the first half of 2026. Provisions for sales and procurement support also declined by EUR 0.1 billion. By contrast, miscellaneous other provisions, provisions for termination benefits, in particular in connection with the 2025-2026 Workforce Transformation program at T‑Mobile US, and provisions for litigation risks increased. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 0.1 billion.

Other liabilities

The carrying amount of current and non-current other liabilities increased by EUR 0.2 billion to EUR 5.2 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 and liabilities from early retirement arrangements for civil servants by EUR 0.1 billion.

Current and non-current contract liabilities

The carrying amount of current and non-current contract liabilities was at the same level as at December 31, 2025 of EUR 3.6 billion. These relate to deferred revenues.

Shareholders’ equity

The carrying amount of shareholders’ equity decreased by EUR 3.4 billion compared with December 31, 2025 to EUR 88.8 billion. Transactions with owners reduced shareholders’ equity by EUR 6.3 billion, and related mainly to the buy-back of shares by T‑Mobile US. Furthermore, shareholders’ equity was reduced in connection with dividend payments for the 2025 financial year to Deutsche Telekom AG shareholders in the amount of EUR 4.8 billion and to other shareholders of subsidiaries in the amount of EUR 1.2 billion. The latter figure includes cash dividends paid by T‑Mobile US to non-controlling interests, as declared in the reporting period. The carrying amount was also reduced by Deutsche Telekom AG’s 2026 share buy-back program with share buy-backs of EUR 1.0 billion, while profit of EUR 6.9 billion and capital increases from share-based payments of EUR 0.4 billion had an increasing effect. Other comprehensive income also increased the carrying amount by EUR 2.6 billion, mainly as a result of currency translation effects of EUR 2.0 billion recognized directly in equity and the remeasurement of defined benefit pension plans accounting for EUR 0.3 billion, as well as gains from hedging instruments of EUR 0.2 billion.

On April 21, 2026, the Board of Management resolved, with the authorization of the Shareholders’ Meeting from April 9, 2025, to cancel 55,412,156 shares that had been acquired as part of the 2025 share buy-back program. The cancellation resulted in the decrease of the share capital by around EUR 142 million. Deutsche Telekom AG’s share capital now amounts to approximately EUR 12.4 billion and is divided into 4,849,778,057 no par value registered shares. This results in a calculated value of EUR 2.56 per share. Each share entitles the holder to one vote.

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: