Reconciliation of alternative performance measures Special factors The following table presents a reconciliation of EBITDA AL, 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 2018 financial year: (XLS:) Download millions of € EBITDA ALQ1-Q3 2019 EBITQ1-Q3 2019 EBITDA ALQ1-Q3 2018 EBITQ1-Q3 2018 EBITDA ALFY 2018 EBITFY 2018 EBITDA AL/EBIT 17,523 7,665 16,516 7,053 21,577 8,001 GERMANY (354) (354) (481) (481) (598) (598) Staff-related measures (340) (340) (455) (455) (565) (565) Non-staff-related restructuring (23) (23) (22) (22) (46) (46) Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0 Impairment losses 0 0 0 0 0 0 Other 9 9 (4) (4) 13 13 UNITED STATES (441) (441) (59) (59) (160) (160) Staff-related measures (6) (6) (10) (10) (15) (15) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions (435) (435) (48) (48) (145) (145) Impairment losses 0 0 0 0 0 0 Other 0 0 0 0 0 0 EUROPE (110) (110) (73) (73) (122) (797) Staff-related measures (95) (95) (60) (60) (90) (90) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions (10) (10) (9) (9) (14) (14) Impairment losses 0 0 0 0 0 (674) Other (5) (5) (4) (4) (19) (19) SYSTEMS SOLUTIONS (236) (263) (143) (146) (266) (322) Staff-related measures (101) (101) (89) (89) (194) (194) Non-staff-related restructuring (4) (4) (1) (1) (4) (4) Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0 Impairment losses 0 (27) 0 (3) 0 (56) Other (130) (130) (53) (53) (68) (68) GROUP DEVELOPMENT 109 109 (16) (16) (27) (27) Staff-related measures (16) (16) (4) (4) (6) (6) Non-staff-related restructuring 0 0 0 0 0 0 Effects of deconsolidations, disposals and acquisitions 126 126 (11) (11) (21) (21) Impairment losses 0 0 0 0 0 0 Other 0 0 (1) (1) (1) (1) GROUP HEADQUARTERS & GROUP SERVICES (146) (146) (214) (214) (322) (322) Staff-related measures (167) (167) (236) (236) (288) (288) Non-staff-related restructuring (32) (32) (51) (51) (59) (59) Effects of deconsolidations, disposals and acquisitions 4 4 (2) (2) (44) (44) Impairment losses 0 0 0 0 0 0 Other 49 49 75 75 69 69 GROUP (1,178) (1,228) (985) (989) (1,497) (2,204) Staff-related measures (726) (726) (855) (855) (1,159) (1,159) Non-staff-related restructuring (59) (59) (74) (74) (109) (109) Effects of deconsolidations, disposals and acquisitions (315) (315) (70) (70) (223) (223) Impairment losses 0 (50) 0 (3) 0 (707) Other (77) (77) 14 14 (6) (6) EBITDA AL/EBIT (ADJUSTED FOR SPECIAL FACTORS) 18,701 8,893 17,501 8,042 23,074 10,204 Profit (loss) from financial activities(adjusted for special factors) (1,487) (1,394) (2,091) PROFIT (LOSS) BEFORE INCOME TAXES(ADJUSTED FOR SPECIAL FACTORS) 7,407 6,648 8,114 Income taxes (adjusted for special factors) (2,036) (1,897) (2,225) PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) 5,371 4,751 5,889 PROFIT (LOSS) (ADJUSTED FOR SPECIAL FACTORS) ATTRIBUTABLE TO Owners of the parent (net profit (loss))(adjusted for special factors) 3,932 3,749 4,545 Non-controlling interests (adjusted for special factors) 1,439 1,003 1,344 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, 2019 Dec. 31, 2018 Change Change % Sept. 30, 2018 a Financial liabilities included finance lease liabilities in accordance with IAS 17 for the last time as of December 31, 2018 (EUR 2.5 billion). The new IFRS 16 “Leases” accounting standard has been applied since January 1, 2019. Prior-year comparatives were not adjusted. For more information, please refer to the section “Accounting policies” in the interim consolidated financial statements. Financial liabilities (current)a 14,148 10,527 n.a. n.a. 7,319 Financial liabilities (non-current)a 55,510 51,748 n.a. n.a. 53,804 Lease liabilities 20,314 n.a. n.a. n.a. n.a. FINANCIAL LIABILITIES 89,971 62,275 n.a. n.a. 61,124 Accrued interest (731) (719) (12) (1.7) (674) Other (775) (928) 153 16.5 (840) GROSS DEBT 88,465 60,628 n.a. n.a. 59,610 Cash and cash equivalents 6,461 3,679 2,782 75.6 2,235 Derivative financial assets 2,927 870 2,057 n.a. 900 Other financial assets 270 654 (384) (58.7) 1,002 NET DEBT 78,807 55,425 n.a. n.a. 55,473
