Selected notes to the consolidated statement of financial position

Trade receivables

At EUR 16.5 billion, trade receivables decreased by EUR 0.3 billion against the 2025 year-end level, with receivables in the Germany and United States operating segments decreasing in spite of an increasing effect from exchange rate effects. By contrast, receivables increased in the Europe and System Solutions operating segments.

Contract assets

The carrying amount of contract assets increased by EUR 0.1 billion against the 2025 year-end level to EUR 3.2 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 increased by EUR 0.8 billion against the 2025 year-end level to EUR 3.6 billion. Stockpiling, primarily for the market launch of high-value mobile terminal equipment in the United States operating segment, increased the carrying amount. Exchange rate effects, primarily from the translation from U.S. dollars into euros, also increased the carrying amount.

Intangible assets

The carrying amount of intangible assets increased by EUR 5.0 billion compared to December 31, 2025 to EUR 138.6 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, increased the carrying amount by EUR 4.0 billion. Investments also increased it by EUR 6.4 billion, with EUR 2.1 billion of this relating to investments in mobile spectrum, primarily in the United States operating segment. Amortization and impairment losses of EUR 5.0 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 0.5 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.

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). The transaction, including certain modifications to the 800 MHz spectrum licenses, was approved by the FCC on July 1, 2026. Following the receipt of the approvals, T‑Mobile US completed the sale of the respective spectrum licenses to Grain in exchange for cash consideration of USD 2.9 billion (EUR 2.5 billion) and the receipt of 600 MHz spectrum licenses valued at USD 0.7 billion (EUR 0.6 billion). The transaction was completed on August 10, 2026. Prior to completion, the licenses concerned were reported as held for sale with a carrying amount of EUR 3.1 billion. It has been further agreed that T‑Mobile US will 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. On October 8, 2026 (after the reporting period), Grain entered into a purchase and sale agreement with Space Exploration Technologies Corp. (SpaceX) for the sale of the 800 MHz spectrum licenses. The transaction is subject to customary closing conditions and regulatory approvals. T‑Mobile US has not yet recognized an associated gain for this potential additional consideration.

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 USD 0.3 billion (EUR 0.2 billion). The purchase price, taking into account the cash deposit previously made to the FCC, was paid in July 2026. The FCC allocated the licenses on August 23, 2026.

In September 2026, T‑Mobile US completed the acquisition of 600 MHz spectrum licenses from TStar 600, LLC and two of its subsidiaries (TStar) in exchange for cash consideration of USD 0.3 billion (EUR 0.3 billion), which is expected to be paid in the first quarter of 2027.

T‑Mobile US consummated a number of transactions agreed with telecommunications companies for the exchange of spectrum licenses in the reporting period. The fair values of the licenses received in these transactions amounted to EUR 0.5 billion in total. The resulting overall gain was immaterial. The licenses transferred as part of the exchange transactions, which had a carrying amount of totaling EUR 0.5 billion, were recognized in non-current assets and disposal groups held for sale after being reclassified when the agreements were concluded, and up to the point at which the transactions were consummated.

The following agreements will have an impact on the presentation of Deutsche Telekom’s results of operations and financial position in the future:

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 1.1 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 1.1 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.

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 0.3 billion compared with December 31, 2025 to EUR 64.5 billion. Depreciation and impairment losses reduced the carrying amount by EUR 9.1 billion and disposals by EUR 0.3 billion. The carrying amount was increased by additions of EUR 8.0 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. Reclassifications of right-of-use assets upon expiry of the contractual lease term to property, plant and equipment, primarily for network technology in the United States operating segment, also increased the carrying amount by EUR 0.2 billion.

Right-of-use assets

The carrying amount of the right-of-use assets decreased by EUR 0.5 billion compared to December 31, 2025 to EUR 28.1 billion. Depreciation and impairment losses reduced the net carrying amount by EUR 4.3 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.2 billion. Disposals reduced the carrying amount by EUR 0.1 billion. By contrast, the carrying amount was increased by additions of EUR 3.3 billion and exchange rate effects of EUR 0.8 billion, mainly from the translation of U.S. dollars into euros.

Capitalized contract costs

As of September 30, 2026, the carrying amount of capitalized contract costs was up by EUR 0.3 billion against the level of December 31, 2025 to EUR 4.2 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 capital increases, primarily in the investment in GlasfaserPlus, and exchange rate effects, primarily from the translation of U.S. dollars into euros, while proportionate net losses from T‑Mobile US’ investments in Metronet and Lumos in the reporting period, as well as 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 increased by EUR 0.2 billion compared to December 31, 2025 to EUR 8.8 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 is mainly due to lower receivables from collateral agreements as surety for credit risks in connection with derivative hedges as a result of 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 increased by EUR 0.2 billion to EUR 1.0 billion, largely due to positive measurement effects in relation to payer interest rate swaps due to rising interest rates in the eurozone (EUR 0.3 billion). The carrying amount was reduced by the rating-related replacement of existing hedging derivatives with adjusted cross-currency swaps (EUR 0.1 billion) 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. The carrying amount of derivatives without a hedging relationship decreased by EUR 0.1 billion. This was primarily due to the negative measurement effects from the subsequent measurement of termination rights embedded in bonds issued by T‑Mobile US as a result of the rising interest rates in the U.S. dollar zone.

The carrying amount of equity instruments increased by EUR 0.3 billion, mainly due to increases in fair value.

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 0.7 billion to EUR 4.9 billion. As of September 30, 2026, this included various advance payments, totaling EUR 3.3 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. Non-current other assets also included a plan asset of EUR 0.8 billion as of September 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 September 30, 2026 was EUR 0.1 billion, down EUR 3.0 billion compared with December 31, 2025. EUR 3.1 billion of this decline was attributable to the sale of 800 MHz spectrum licenses concluded 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 September 30, 2026:

The carrying amount of current and non-current financial liabilities increased by EUR 3.0 billion compared with year-end 2025 to EUR 113.4 billion, primarily due to the factors described below. These factors include exchange rate effects that increased the carrying amount by EUR 2.8 billion, primarily from the translation of U.S. dollars into euros.

The carrying amount of bonds and other securitized liabilities increased by EUR 1.6 billion to EUR 93.6 billion. Exchange rate effects increased the carrying amount of bonds and other securitized liabilities by EUR 2.4 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 %, a GBP bond of GBP 0.4 billion (EUR 0.5 billion) with a term ending in 2046 and bearing interest of 6.625 %, HKD bonds of HKD 2.0 billion (EUR 0.2 billion) with terms ending between 2031 and 2036 and bearing interest of 4.005 % to 4.55 %, as well as a CNH bond of CNH 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, a EUR bond of EUR 0.6 billion of Deutsche Telekom International Finance B.V., and a EUR bond of EUR 0.4 billion of OTE. T‑Mobile US also repaid USD bonds with a volume of USD 1.5 billion (EUR 1.3 billion) prematurely and bought back USD bonds with a volume of USD 1.3 billion (EUR 1.1 billion). In addition, the carrying amount decreased by EUR 0.5 billion in connection with measurement effects from derivatives with a hedging relationship, the offsetting entry for which is posted under bonds and other securitized liabilities.

Liabilities collateralized by existing and anticipated trade receivables (including asset-backed securities) of EUR 3.1 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 1.7 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 3.0 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 0.5 billion when translated into euros increased the carrying amount. Exchange rate effects increased the carrying amount of liabilities to banks by EUR 0.1 billion. The scheduled repayment of an EIB loan in the amount of EUR 0.5 billion and scheduled repayments of commercial paper amounting to EUR 0.1 billion had an offsetting effect.

The liabilities with the right of creditors to priority repayment in the event of default of EUR 0.5 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 0.2 billion when translated into euros. At the reporting date, cash and cash equivalents with a carrying amount of EUR 75 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 decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 5.8 billion. In the Germany operating segment, the carrying amount was decreased by scheduled repayments of loans for the acquisition of 5G licenses and by repayments of liabilities for the acquisition of broadcasting rights, each in the amount of EUR 0.2 billion. The carrying amount decreased by another EUR 0.1 billion in connection with collateral received for derivative financial instruments. The repayment of commercial paper also decreased the carrying amount by EUR 0.1 billion. The carrying amount was increased by new liabilities incurred for the acquisition of spectrum at T‑Mobile US in the amount of EUR 0.3 billion, as well as for the acquisition of broadcasting rights in the Germany operating segment in the amount of EUR 0.1 billion. Exchange rate effects also increased the carrying amount by EUR 0.1 billion.

The carrying amount of derivative financial liabilities increased by EUR 0.2 billion compared with December 31, 2025 to EUR 2.6 billion. It was mainly increased by measurement effects from receiver interest rate swaps in fair value hedges as a result of increased interest rates in the eurozone and the U.S. dollar zone (EUR 0.4 billion). Measurement effects from payer interest rate swaps in cash flow hedges, also as a result of increased interest rates in the eurozone (EUR 0.2 billion), had an offsetting effect.

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 0.7 billion compared with December 31, 2025 to EUR 35.7 billion. Lease liabilities in the United States and Germany operating segments decreased by EUR 0.4 billion and EUR 0.2 billion, respectively. Lease liabilities in the United States operating segment declined by EUR 1.4 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 1.0 billion reduced the carrying amount.

Trade and other payables

The carrying amount of trade and other payables decreased by EUR 0.6 billion compared with year-end 2025 to EUR 9.0 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 and in the Group Headquarters & Group Services segment. 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 0.4 billion compared with December 31, 2025 to EUR 1.5 billion. Overall, the remeasurement of defined benefit plans resulted in an actuarial gain of EUR 0.9 billion to be recognized directly in equity, mainly due to the increase in the discount rate and 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 0.6 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 0.5 billion compared with year-end 2025 to EUR 7.5 billion. Other provisions for personnel costs decreased by EUR 0.5 billion, primarily in connection with the performance-based remuneration components for the prior year paid out to employees and due to an interest rate-based decline in the carrying amount of the provision recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK). Provisions for sales and procurement support also declined by EUR 0.2 billion. By contrast, the provisions for litigation risks and miscellaneous other provisions 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 0.3 billion to EUR 5.2 billion, mainly due to an increase in liabilities from other taxes by EUR 0.5 billion. By contrast, liabilities in connection with publicly funded projects in the Germany operating segment decreased by EUR 0.2 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 decreased by EUR 0.2 billion compared with December 31, 2025 to EUR 3.4 billion. These relate to deferred revenues.

Shareholders’ equity

The carrying amount of shareholders’ equity decreased by EUR 1.4 billion compared with December 31, 2025 to EUR 90.9 billion. Transactions with owners reduced shareholders’ equity by EUR 8.5 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 1.7 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 1.8 billion, while profit of EUR 11.2 billion and capital increases from share-based payments of EUR 0.6 billion had an increasing effect. Other comprehensive income also increased the carrying amount by EUR 3.5 billion, mainly as a result of currency translation effects of EUR 2.1 billion recognized directly in equity and the remeasurement of defined benefit pension plans accounting for EUR 0.9 billion, as well as gains from hedging instruments of EUR 0.8 billion. Gains/losses from the remeasurement of equity instruments also increased the carrying amount by EUR 0.3 billion, mainly due to increases in fair value. Taxes directly recognized in equity had an offsetting effect of EUR 0.4 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: