Reconciliation of alternative performance measures Special factors The following table presents a reconciliation of EBITDA, EBIT, and net profit/loss to the respective figures adjusted for special factors. Reconciliations are presented for the reporting period, the prior-year period, and the full 2017 financial year: (XLS:) Download millions of € EBITDA Q1–Q3 2018 EBIT Q1–Q3 2018 EBITDA Q1–Q3 2017 EBIT Q1–Q3 2017 EBITDAFY 2017 EBITFY 2017 EBITDA/EBIT 16,699 7,053 19,267 8,699 23,969 9,383 GERMANY (481) (481) (228) (228) (308) (308) Staff-related measures (455) (455) (155) (155) (221) (221) Non-staff-related restructuring (22) (22) (15) (15) (26) (26) Effects of deconsolidations, disposals and acquisitions – – – – – – Impairment losses – – – – – – Other (4) (4) (58) (58) (61) (61) UNITED STATES (59) (59) 1,647 1,647 1,633 1,633 Staff-related measures (10) (10) (5) (5) (7) (7) Non-staff-related restructuring – – – – – – Effects of deconsolidations, disposals and acquisitions (48) (48) 1 1 (11) (11) Impairment losses – – 1,651 1,651 1,651 1,651 Other – – – – – – EUROPE (73) (73) (94) (94) (130) (995) Staff-related measures (60) (60) (63) (63) (92) (92) Non-staff-related restructuring – – – – (3) (3) Effects of deconsolidations, disposals and acquisitions (9) (9) (1) (1) 18 18 Impairment losses – – – – – (866) Other (4) (4) (30) (30) (53) (52) SYSTEMS SOLUTIONS (143) (146) (148) (1,396) (229) (1,477) Staff-related measures (89) (89) (87) (87) (132) (132) Non-staff-related restructuring (1) (1) (1) (1) (2) (2) Effects of deconsolidations, disposals and acquisitions – – – – – – Impairment losses – (3) – (1,247) – (1,242) Other (53) (53) (61) (61) (94) (100) GROUP DEVELOPMENT (16) (16) 937 937 893 893 Staff-related measures (4) (4) 3 3 1 1 Non-staff-related restructuring – – (4) (4) (5) (5) Effects of deconsolidations, disposals and acquisitions (11) (11) 736 736 708 708 Impairment losses – – – – – – Other (1) (1) 201 201 189 189 GROUP HEADQUARTERS & GROUP SERVICES (214) (214) (62) (62) (119) (119) Staff-related measures (236) (236) (78) (78) (107) (107) Non-staff-related restructuring (51) (51) (15) (15) (49) (49) Effects of deconsolidations, disposals and acquisitions (2) (2) 42 42 63 63 Impairment losses – – – – – – Other 75 75 (12) (12) (26) (26) GROUP (985) (989) 2,051 804 1,740 (374) Staff-related measures (855) (855) (382) (382) (559) (559) Non-staff-related restructuring (74) (74) (35) (35) (85) (85) Effects of deconsolidations, disposals and acquisitions (70) (70) 778 778 778 778 Impairment losses – (3) 1,651 403 1,651 (463) Other 14 14 40 40 (45) (45) EBITDA/EBIT (ADJUSTED FOR SPECIAL FACTORS) 17,684 8,042 17,215 7,895 22,230 9,757 Profit (loss) from financial activities (adjusted for special factors) (1,394) (2,360) (2,895) PROFIT (LOSS) BEFORE INCOME TAXES (ADJUSTED FOR SPECIAL FACTORS) 6,648 5,535 6,863 Income taxes (adjusted for special factors) (1,897) (1,513) 949 PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) 4,751 4,022 7,812 PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS)ATTRIBUTABLE TO Owners of the parent (net profit (loss))(adjusted for special factors) 3,749 3,382 6,039 Non-controlling interests (adjusted for special factors) 1,003 640 1,773 Gross and net debt Deutsche Telekom considers net debt to be an important performance indicator for investors, analysts, and rating agencies. (XLS:) Download millions of € Sept. 30, 2018 Dec. 31, 2017 Change Change % Sept. 30, 2017 Financial liabilities (current) 7,319 8,358 (1,039) (12.4) 9,250 Financial liabilities (non-current) 53,804 49,171 4,633 9.4 49,387 FINANCIAL LIABILITIES 61,124 57,529 3,595 6.2 58,637 Accrued interest (674) (692) 18 2.6 (639) Other (840) (781) (59) (7.6) (721) GROSS DEBT 59,610 56,056 3,554 6.3 57,277 Cash and cash equivalents 2,235 3,312 (1,077) (32.5) 2,860 Available-for-sale financial assets/ financial assets held for trading – 7 (7) n. a. 7 Derivative financial assets 900 1,317 (417) (31.6) 1,427 Other financial assets 1,002 629 372 59.2 348 NET DEBT 55,473 50,791 4,682 9.2 52,635 Reconciliation for the change in disclosure of key figures for the comparative period in the first three quarters of 2018 (XLS:) Download millions of € Comparative period Dec. 31, 2017 Totalrevenue Profit (loss)fromoperations(EBIT) EBITDA AdjustedEBITDA Depreciation andamortization Impairment losses Segmentassets Segmentliabilities Q1–Q3 2017/SEPTEMBER 30, 2017PRESENTATION AS OF SEPTEMBER 30, 2017 – AS REPORTED Germany 16,256 3,281 6,132 6,360 (2,845) (6) 33,667 26,566 United States 26,684 5,135 8,960 7,313 (3,821) (4) 64,931 42,003 Europe 8,587 1,081 2,749 2,843 (1,666) (2) 25,746 10,206 Systems Solutions 5,099 (1,319) 214 362 (291) (1,242) 6,408 5,061 Group Development 1,702 1,417 1,632 695 (215) 0 9,997 5,549 Group Headquarters & Group Services 2,268 (895) (395) (333) (475) (25) 46,956 55,867 TOTAL 60,596 8,700 19,292 17,240 (9,313) (1,278) 187,707 145,252 Reconciliation (4,810) (1) (25) (25) 24 – (46,373) (46,388) GROUP 55,787 8,699 19,267 17,215 (9,289) (1,278) 141,334 98,864 Q1–Q3 2017/SEPTEMBER 30, 2017+/– CHANGE IN DISCLOSURE: VIVENTO CUSTOMER SERVICES Germany – (44) (43) (42) – – 71 76 United States – – – – – – – – Europe – – – – – – – – Systems Solutions – – – – – – – – Group Development – – – – – – – – Group Headquarters & Group Services (6) 44 43 42 – – – (4) TOTAL (6) – – – – – 71 72 Reconciliation 6 – – – – – (71) (72) GROUP – – – – – – – – Q1–Q3 2017/SEPTEMBER 30, 2017= PRESENTATION AS OF SEPTEMBER 30, 2018 Germany 16,256 3,238 6,089 6,318 (2,845) (6) 33,739 26,641 United States 26,684 5,135 8,960 7,313 (3,821) (4) 64,931 42,003 Europe 8,587 1,081 2,749 2,843 (1,666) (2) 25,746 10,206 Systems Solutions 5,099 (1,319) 214 362 (291) (1,242) 6,408 5,061 Group Development 1,702 1,417 1,632 695 (215) – 9,997 5,549 Group Headquarters & Group Services 2,262 (851) (352) (291) (475) (24) 46,957 55,863 TOTAL 60,590 8,700 19,292 17,240 (9,313) (1,278) 187,778 145,323 Reconciliation (4,804) (1) (25) (25) 24 – (46,444) (46,459) GROUP 55,787 8,699 19,267 17,215 (9,289) (1,278) 141,334 98,864
