Deutsche Telekom at a glance Net revenue Net revenue increased by 24.0 percent to EUR 73.4 billion. In organic terms, revenue increased by EUR 0.8 billion or 1.1 percent. Including the revenue contributions from the acquired entity Sprint and including exchange rate differences, our United States segment posted an increase in revenue of 48.6 percent. In organic terms, revenue was up 1.9 percent against the prior year. In our Germany and Europe segments, revenue on an organic basis remained on a par with the prior-year level. Revenue in the Europe segment was down 1.9 percent on account of exchange rate effects. Revenue in our Systems Solutions segment decreased year-on-year by 4.9 percent due primarily to the coronavirus-induced contraction of the IT market. In our Group Development segment, the 3.6 percent increase in revenue was driven mainly by the growth at T‑Mobile Netherlands and DFMG. Net revenue billions of € EBITDA AL(adjusted for special factors) Adjusted EBITDA AL grew by 39.4 percent to EUR 26.1 billion. All segments, with the exception of Systems Solutions, contributed to this growth. Excluding exchange rate effects and changes in the composition of the Group, our adjusted EBITDA AL increased by EUR 1.8 billion or 7.5 percent. Adjusted EBITDA AL rose sharply by 83.5 percent in our United States segment as a result of the acquisition of Sprint and, in particular, the growth in service and terminal equipment revenues. In organic terms, adjusted EBITDA AL grew by 10.2 percent year-on-year. Our Germany segment recorded an increase in adjusted EBITDA AL of 1.8 percent and our Europe operating segment a slight increase of 0.2 percent. Adjusted EBITDA AL grew substantially in our Group Development segment, by 8.0 percent. At 35.5 percent, the Group’s adjusted EBITDA AL margin increased by 3.9 percentage points against the prior-year level. The adjusted EBITDA AL margin was 39.4 percent in Germany, 35.4 percent in Europe, and 35.1 percent in the United States. EBITDA AL(adjusted for special factors) billions of € EBIT EBIT increased by EUR 1.0 billion year-on-year to EUR 8.7 billion, mainly as a result of the effects described under adjusted EBITDA AL. EBITDA AL was negatively affected by special factors of EUR 2.4 billion compared to expenses of EUR 1.2 billion in the prior-year period. Expenses of EUR 1.0 billion were recorded in connection with the business combination of T‑Mobile US and Sprint; this contrasted with expenses of EUR 0.4 billion in the prior-year period. Further expenses of EUR 0.4 billion in the first half of 2020, primarily in connection with the coronavirus pandemic, had been classified as special factors in the United States segment. Other special factors in both periods were primarily attributable to staff-related measures. Depreciation and amortization were EUR 5.5 billion higher than in the prior-year period due in particular to the acquisition of Sprint. Impairment losses on non-current assets reduced EBIT by EUR 0.7 billion. EBIT billions of € Net profit Net profit decreased by EUR 0.7 billion to EUR 2.5 billion. Loss from financial activities increased by EUR 1.7 billion to EUR 3.2 billion, largely due to an increase in finance costs of EUR 1.3 billion as a result of the financial liabilities acquired from Sprint and the restructuring begun in connection with this business combination and the related increase in financing, including the handling charges incurred for a briefly utilized bridge loan facility, had a negative effect. Other financial income decreased by EUR 0.3 billion year-on-year to an expense of EUR 0.1 billion. The tax expense of EUR 1.5 billion was EUR 0.2 billion lower than in the prior-year period. Profit attributable to non-controlling interests increased from EUR 1.3 billion to EUR 1.6 billion. Adjusted earnings per share amounted to EUR 0.86 compared with EUR 0.83 in the prior-year period. Net profit billions of € Equity ratio At 27.2 percent, the equity ratio remained almost stable at the end of the third quarter of 2020: Total assets/total liabilities and shareholders’ equity increased by EUR 94.6 billion to EUR 265.3 billion, and shareholders’ equity by EUR 25.8 billion to EUR 72.0 billion. Shareholders’ equity increased by EUR 30.7 billion in connection with the business combination of T‑Mobile US and Sprint. Profit after taxes (EUR 4.0 billion), income taxes relating to components of other comprehensive income (EUR 0.4 billion), and capital increases from share-based payment (EUR 0.4 billion) also had an increasing effect. The carrying amount was reduced in particular by dividend payments to shareholders (EUR 2.8 billion) and other shareholders of subsidiaries (EUR 0.2 billion), the remeasurement of defined benefit plans (EUR 1.9 billion), currency translation effects recognized directly in equity (EUR 3.9 billion), and actuarial losses from hedging instruments (EUR 1.0 billion). Equity ratio % Cash capex(before spectrum investment) Cash capex (before spectrum investment) increased by EUR 1.5 billion to EUR 11.5 billion, largely on account of the inclusion of Sprint and the ongoing 5G network build-out in the United States. In Europe, we continued to invest in our fiber-optic network and are forging ahead with the build-out of our mobile communications infrastructure. Cash capex (including spectrum investment) increased by EUR 1.7 billion to EUR 12.9 billion. In the United States segment, FCC mobile licenses were acquired in the reporting period for a total of EUR 1.0 billion; the Europe and Group Development segments each acquired mobile spectrum licenses in the amount of EUR 0.2 billion, respectively, in the same period. The prior-year figure included EUR 1.0 billion for the acquisition of mobile spectrum licenses, which primarily related to the United States segment. Cash capex(before spectrum investment) billions of € Free cash flow AL(before dividend payments and spectrum investment)a Free cash flow AL increased slightly year-on-year. Excluding interest payments for zero-coupon bonds and the premature termination of forward-payer swaps in the United States segment, net cash from operating activities increased by EUR 2.7 billion. This was attributable in particular to the sustained positive performance of the segments, especially in the United States, which now includes Sprint. The increase was partially offset by EUR 1.5 billion higher cash capex (before spectrum investment) and in particular by higher interest payments, mainly as a result of the financial liabilities recognized and the restructuring begun in connection with acquisition of Sprint, and the related increase in financing. Our contractual termination of a revolving factoring agreement in the Germany segment, and higher repayments of lease liabilities primarily in the United States segment, also had a negative effect. Free cash flow AL(before dividend payments and spectrum investment)a billions of € Net debt Net debt increased by EUR 48.5 billion to EUR 124.5 billion compared with the end of 2019. This increase was mainly attributable to the transfer of financial liabilities in connection with the business combination with Sprint (EUR 44.1 billion) and additions of lease liabilities (EUR 12.8 billion) primarily as a result of the modification of existing agreements with American Tower on the lease and use of cell sites in the United States. Other factors with an increasing effect were dividend payments (EUR 3.1 billion), including to non-controlling interests, as well as the acquisition of spectrum (EUR 1.4 billion) and forward-payer swaps concluded for borrowings at T‑Mobile US (EUR 1.1 billion). Free cash flow (EUR 8.9 billion), exchange rate effects (EUR 4.4 billion) as well as the sale of Sprint’s prepaid business to DISH (EUR 1.2 billion) in particular reduced net debt. Net debt billions of € a Before interest payments for zero-coupon bonds and before termination of forward-payer swaps at T‑Mobile US. For further information, please refer to the section “Development of business in the Group” in the interim Group management report. schließen 5G New communications standard, which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things – rollout starting 2020. schließen Prepay/prepaid In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.