The Deutsche Telekom Group and its operating segments.

Deutsche Telekom is one of the world’s leading integrated telecommunications companies, with approximately 129 million mobile customers, 36 million fixed-network lines, and more than 16 million broadband lines. We provide fixed-network/broadband, mobile communications, Internet, and IPTV products and services for consumers, and information and communication technology (ICT) solutions for business and corporate customers. Deutsche Telekom is present in around 50 countries. With a staff of some 247,000 employees throughout the world, we generated revenue of EUR 62.4 billion, over half of it outside Germany.

Germany.

We slowed the year-on-year decrease in total revenue in our Germany operating segment. While revenue declined in our fixed-network business, we saw an increase of 3 percent in mobile communications revenue, which was primarily attributable to the strong growth in data revenues of 35 percent. We invested almost EUR 5 million in Germany‘s broadband future last year – around 50 percent more than in the previous year.

	Change compared to prior year %	2010 billions of €	2009 billions of €

Total revenue	(1.1)	25.1	25.4
EBIT (profit from operations)	(2.9)	4.9	5.1
EBITDA (adjusted for special factors)	0.1	9.6	9.6
Average number of employees	(6.2)	79,364	84,584

Europe.

The Europe operating segment encompasses our fixed-network and mobile communications subsidiaries in Greece, Romania, Bulgaria, Albania, Hungary, F.Y.R.O. Macedonia, Montenegro, Croatia, Slovakia, Poland, the Czech Republic, the Netherlands, and Austria. The tough economic situation in the countries of Southern and Eastern Europe in particular had a considerable impact on total revenue. The greatest growth potential for the future is in broadband business and in the areas of IPTV

, as customer figures clearly show. Business with high-value contract customers drove growth in our mobile communications segment.

	Change compared to prior year %	2010 billions of €	2009 billions of €

Total revenue	(14.1)	16.8	19.6
EBIT (profit from operations)	n.a.	1.0	0.1
EBITDA (adjusted for special factors)	(10.0)	5.7	6.4
Average number of employees	(5.5)	65,435	69,277

USA.

We have expanded our high-performance network further in the United States and are running it at 4 G speeds. What’s more, we will include a range of attractive new smartphones and tablet computers in our portfolio. The number of 3 G and 4 G smartphone users on our network more than doubled in 2010. T-Mobile USA received several awards from independent consumer organizations for its excellent customer service.

	Change compared to prior year %	2010 billions of €	2009 billions of €

Total revenue	4.0	16.1	15.5
EBIT (profit from operations)	(6.3)	2.1	2.2
EBITDA (adjusted for special factors)	(2.5)	4.2	4.3
Average number of employees	(1.1)	37,795	38,231

Systems Solutions.

T-Systems provides individual ICT

solutions for corporate customers, operating networks and data centers all over the world. Despite the fact that prices in the ICT business are falling, T-Systems’ total revenue increased on the back of strategically significant new deals, with the high level of demand for cloud services playing a considerable role. Our customers receive the bandwidth and computing and storage capacity they need for their business processes, and they only pay for what they actually use.

	Change compared to prior year %	2010 billions of €	2009 billions of €

Total revenue	2.9	9.1	8.8
EBIT (profit (loss) from operations)	n.a.	0.04	(0.01)
EBITDA (adjusted for special factors)	2.7	0.9	0.9
Average number of employees	5.0	47,588	45,328

Group Headquarters & Shared Services.

Group Headquarters & Shared Services performs strategic and cross-divisional management functions and is responsible for operating activities that are not directly related to our core business. Shared Services include property management, DeTeFleetServices GmbH, and Vivento, which is responsible for providing employees with new employment opportunities as part of our staff restructuring program.

	Change compared to prior year %	2010 billions of €	2009 billions of €

Total revenue	(10.1)	2.2	2.4
EBIT (loss from operations)	(98.5)	(2.5)	(1.2)
EBITDA (adjusted for special factors)	n.a.	(0.9)	(0.3)
Average number of employees	(7.3)	22,312	20,181

For detailed tables showing operational development of the segments and Group Headquarters & Shared Services along with explanatory footnotes, please refer to the management report.

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