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Deutsche Telekom AG (DTE.DE)Q1 2014 Earnings CallFormatted Report08-May-2014Strategy Execution Let me also giv e y ou an update on our progress in terms of strategy ex ecution regarding our integratednetwork rollout and all-IP transformation in Germany on the following slideBy the end of Q1 , we are at 38% fiber and a 7 4% LTE POP cov erageWe hav e already migrated 2.6mm customers to all-IP in Germany , which translates into over 21 % of all ofour broadbands and almost 1 3% of all our fix ed lines being migrated to all-IP alreadyo Currently , we are migrating at a speed of roughly 45,000 to 50,000 customers per week inGermanyU.S. BusinessCUSTOMER GROWTH Let me simply summarize the highlights of the quarter, and all relev ant numbers were already reportedand discussed by our TMUS colleagues for the U.S. business last weekIn Q1 , the U.S. business showed their best customer growth ever, with 2.4mm new net customers in total,of which 1 .32mm were branded postpaid net adds, leading to an upward revision of the full-y ear brandedpostpaid net adds target to 2.8mm to 3.3mmo At the same time, we saw a strong y ear -on-y ear reduction of 40BPS in our branded postpaidchurn, down to 1 .5%, and a continued improv ement in our customer qual ityEQUIPMENT INSTALLMENT PLAN RECEIVABLES Fifty -three percent of our equipment installment plan receivables are regarded as prime, up from 44% inQ1 201 3Serv ice bad debt ex penses decreased 3% y ear -on-y ear and 1 3% quarter-on-quarter in Q1 201 4Most importantly , TMUS returned to a 4.5% serv ice rev enue growth in the quarter on a pro formacombined basisPOSTPAID SERVICE REVENUES Postpaid serv ice rev enues grew ev en at 5.6% As a result of the stellar subscriber growth in the quarter, the pro forma combin ed adjusted EBITDAdecreased by 25.9% y ear-on-y ear And also as a result of the higher-than-expected subscriber growth for the y ear, T-Mobile US rev ised theirfull-y ear EBITDA guidance slightly down to 5.6B to 5.8B under U.S. GAAP for the full y earEuropeREVENUES Now let’s turn to EuropeRev enues in our European segment declined 6.5% y ear -on-year on a reported basis and 2.6% organicallyin the quarter, driven by the following effects: broadly stable operational trends in our traditional telcorev enues quarter-on-quarter, but weaker ICT, energy , and handset wholesale trends compared to Q4It is worth mentioning that from 83mm organic rev enue decline in this quarter, 61 mm are comingfrom the mobile regulation1-877-FACTSET www.callstreet.com6Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Q1 2014 Earnings CallFormatted Report08-May-2014ADJUSTED EBITDA On a reported basis, the adjusted EBITDA in the segment declined by 6.4% and organically by 2.3%,resulting in a slightly y ear-on-y ear improv ed EBITDA margin of 32.9% for the segment Main driv ers were here:o Lower direct costs, driv en by , among others, lower market inv est as the share wa s splito Contract transaction in some of the countries was highero And also good indirect cost sav ings in some markets, particularly in Greece, resulting from lasty ear’s headcount reduction program, offsetting higher share of lower margin rev enue businessesWe continued to show good momentum in some of our growth areas in Europe NET ADDS We showed satisfying growth in TV , with 55,000 net adds, now reaching almost 3.6mm TV customers inEurope Importantly, we also increased the number of our triple-play customers in the region to 1 .7 mm, up from1 .4mm a y ear agoWe deliv ered 58,000 broadband net adds in the quarter And on mobile contracts, howev er, we were not satisfy ing at 1 2,000 new addsHere we clearly lost momentum in the countries like Poland, the Netherlan ds, and Romania Mobile data organic rev enue growth remained strong at 1 7 %, thereby continuing to compensate thedecline in the SMS rev enuesTechnology and Cost TransformationREVENUE SHARE Let me giv e y ou a quick update on the progress being made on the re v enue as well as on the technologyand cost transformation in segment Europe in the quarter The share of total rev enues from our growth areas increased by three percentage points y ear -on-year from25%The share of the fix ed rev enues from connected home grew by two percentage points y ear -on-y ear, to23%, driv en by TV revenue growth, especially in Croatia, Greece, and due to our acquisition of DIGI inSlov akia The share of mobile data revenues of ov erall mobile rev enues grew by three percentage points, to 1 9%We’re especially pleased here with the growth rates in the Netherlands, the Czech Republic, and also inCroatia And the share of B2B ICT rev enues as of total rev enues increased by 0.9 percentage points, to 3.8%,driv en mainly by our Slov akian and Romanian operationsPARTNERING EFFORTS We also continued to make good progress with our partnering effortsFor ex ample, our partnership with Ev ernote now is launched in all 1 2 countries, along with Deezer on themusic downloads in six and Spotify in another twoThe IP share of all fix ed networks access lines grew by 1 0 percentage points, to 29%, mainly driv en by :o Slov akiao Croatia1-877-FACTSET www.callstreet.com7Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Formatted ReportQ1 2014 Earnings Calloo 08-May-2014HungaryAnd RomaniaLTE sites in serv ice almost increased by six times y ear -on-y ear, to 6,7 00We hav e LTE networks in commercial use now in 1 0 out of 1 2 countries alreadyHomes connected with fiber-to-the-home grew by 43% y ear-on-year, to around 200,000, and householdspassed with V DSL/FTTH technology increased to ov er 5mmT-SystemsREVENUES Let’s now turn ov er to T-Sy stems Q1 clearly already was impacted by the restructuring at the market unitThe reported rev enues decrease of 7 .8% was driv en by Tel IT but also by mark -to-market unit Tel IT rev enues declined by 1 2.7 % y ear -on-y ear, reflecting a lower demand/cost baseThe market unit reported a rev enue decline of 6.7 % y ear -on-y ear Adjusting for deconsolidation and FX, the organic rev enue declined by 4.1 %o This was clearly impacted by the first steps towards the 201 5 restructuring plan, and forex ample, a significant first reduction in hardw are reselling and first cancellation of anunprofitable customer contracto And the decline is in line with the projected rev enue decline for the full -y ear 201 4 as a result ofthe restructuring and the announced repositioning of T-Sy stemsADJUSTED EBITDA AND EBIT T-Sy stems adjusted EBITDA and EBIT declined significantly in the quarter as a result of rev enue declineand seasonal cost dev iation, which is ex pected to rev erse in the upcoming quartersFCF, CapEx and Net Debt Let’s mov e now to our group financials for the quarter, turning to FCF firstGroup FCF is down 5.3% in Q1 , at almost 1 B, significantly ahead of market ex pectation and on track forour full-y ear guidance of around 4.2B.Main driv ers were the roughly stable year -on-year operational cash flow and the roughly stable y ear-ony ear cash CapExGroup net debt was reduced, as anticipated, by over 1 B to 38B at the end of Q1 , with the biggest movingparts being the 1 .6B cash contribution from the sale of the 7 0% Scout stake, the 0.8B pay out of thebuy er of the minorities in the Czech Republic, and clearly the 1 B FCFAdjusted Net Income and EBITDA The adjusted net income decreased by 23.5% y ear -on-y ear in the quarter, driv en by :o a) the decline in adjusted EBITDAo b) the increase in D&A, driv en by the U. S., and here predominantly due to the MetroPCSconsolidationo And c) a decrease in P&L tax es in the quarter, in line with the decline of the adjusted EBITDAThe group ROCE benefited strongly from the book gain on the sale of Scout stake, and stood at 9.3% a tthe end of Q11-877-FACTSET www.callstreet.com8Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Formatted ReportQ1 2014 Earnings Call 08-May-2014Please bear in mind that mathematically, throughout the y ear, the impact of that Scout book gain will bediluted, so that the 9% first quarter ROCE is definitely not an indication for the full y ear of 201 4BALANCE SHEET. Turning to our balance sheet ratios, net debt to adjusted EBITDA remained stable v s. year -end 201 4 (sic)[201 3] (1 9:42), at 2.2 times, as a result of the sequential reduction of the net debt The equity ratio increased slightly , to 27 .9%, due to the slightly higher asset base and the increasedshareholder equity With regard to our comfort zone ratios, we are in green with regard to all ratios. And our ratings remainstable at BBB lev el with the major agencies and stable outlooksAs a result, we continue to get ex cellent funding conditions in the debt capital markets [06GXV H-E Tim Höttges]Q1 HIGHLIGHTS .Strategic Priorities So, on the strategic side, I think we hav e to ex ecute upon our strategy and what we hav e updated y ouupon, and it is along the line of the four principles:o First, integrated IP networkso Second, best customer ex perienceo Thirdly , win with partnerso And fourthly , lead in businessGermanyALL-IP MIGRATION We hav e a lot of things on the plate, and we are v ery active on pushing things forward, and I want to giv ey ou a little bit insight on the priorities we are working onI think in Germany we hav e to execute on our all-IP migration, with the target of migrating around 3mmcustomers this y earAnd keep in mind we hav e to [ph] attend (21:08) every single customer in a dialogue and ev en phy sicallyon his infrastructure at homeINTEGRATED IP NETWORKS Secondly , we hav e to driv e our integrated network rollout at full speed Thirdly , we are driving integrated products, so the fix ed mobile converge products are coming durin g thecourse of this y earBROADBAND MARKET Fourthly, improving our performance in the broadband market from a net adds perspectiv e; and last butnot least, we hav e to ex ecute on our new small and medium enterprise initiative which we have laid out inour last meeting In the U.S., we want to ex ecute upon our LTE rollout target of 250mm POP cov erage now1-877-FACTSET www.callstreet.com9Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Formatted ReportQ1 2014 Earnings Callo08-May-2014This giv es us new market opportunities as well as for our MetroPCS, but as well ev en for the T Mobile brand We hav e to deliver upon our new higher branded pos tpaid net add target which we hav e laid out in thequarter result of 2.8mm to 3.3mm new customers And we want to deliv er upon the EBITDA target of 5.6B under U.S. GAAPEuropean PrioritiesIP MIGRATION In our European priorities, the priorities are as follows First, we hav e to driv e our IP migration with full speed, within Slov akia, being completed by y ear -endWe hav e to continue to grow in our defined growth areas: mobile broadband, TV , and B2B ICT business And we are going to start the integration of our GTS business we hav e recently acquiredPAN-EUROPEAN NETWORK CONCEPT AND RESTRUCTURING PROGRAM And last but not least, we hav e to design our pan-European network concept, which is a v ery innov ativ eand new instrument in our industry At T-Sy stems, I think the path is clearly definedWe hav e to implement the restructuring program, which we call T-Sy stems 201 5 We hav e to increase our EBITDA and EBIT run rate throughout the y ear – by the way , improv ing in H2 –and continue to deliver upon our spend reduction tar get of 1 B until 201 5 at telecom IT, where we hav emade great progress ov er the last three quarters [0C3HZB-E Stephan Eger]GUIDANCE . Just a v ery quick remark, the U.S. guidance, obviously as giv en by the U.S. colleagues, is 5.6B to 5.8Bunder U.S. GAAP1-877-FACTSET www.callstreet.com10Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Q1 2014 Earnings CallFormatted Report08-May-2014QUESTION AND ANSWER SECTIONFrederic E. BoulanAnalyst, Nomura International PlcQFirstly , a question on y our assets in Europe, Tim, I think y ou mentioned this morning unsatisfactory progress in acouple of assets, Poland, Holland. Can y ou discuss y our options here, and also about EE, how do y ou think aboutthis asset, considering the absence of fix ed there and the entry of BT in the consumer market later in the y ear?And, secondly, on the U.S. consolidation, John Legere was on the tape last week say ing consolidation was a matterof when and not if. So if y ou seek out meaningful sy nergies in a combination with another asset, would y ou readyto share the antitrust risk by not requiring significant [indiscernible] (25:18)? And also if y ou can walk us th roughy our thoughts on monetization of y our stake going into lock-up expiry at the end of this y ear v s. other options, andin particular, how y ou think about the AWS three auctions in that contex t? Thank y ou v ery much.Timotheus HöttgesChief Executive Officer, Deutsche Telekom AGAThank y ou, Fred. So let me start with the assets in Europe. Look, I think Thomas’ and my ambition is always to bev ery clear and not alway s making a dog and pony show on quarter results, but ev en v ocal about, let’s say ,challenges which we are facing. That was the reason that we were addressing this issue on the Netherlands and aswell in Poland. By the way , I think the net add numbers on the mobile side weren’t as high as we ex pected. Wewant to see more share on the marketplace; especially in Poland against the Orange we were facing quad -playoffers in that market.We ev en had a little bit less momentum on tests and on other things because we took some promotions out of thebusiness to improve the profitability. And in the Netherlands I think we hav e changed a little bit the logic of thiscontract support here. So, with this, I think the market ambition should be a little bit higher for our teams in thisregion. That has nothing to do that we are now questioning the port folio position of these two assets. It’s anoperational topic which we’re going to address throughout the y ear.With regards to the U.S. consolidation, when, not if, and ready to share the risks and how could we monetize ourstake here with the ex piry of the lock-up, and what are our thoughts on the upcoming spectrum auction – that ishow I understood y our question, Fred – I think the first thing is we are v ery happy how our U.S. business isdev eloping. We said last time, first what y ou hav e to do to turn around the business is infrastructure. We built thisinfrastructure of 200mm POPs, which we now increased to 250mm. With the LTE proposition, we said we hav esomething to sell in the marketplace.Now, we gained, ov er the last four quarters, big-time customers. Now the big-time customers, as a first step, iscreating revenues, and for the first time this quarter we are able to show you the increase on an organic lev el thatwe hav e increased 4.5%. Now, the logical consequence is that now FCF and EBITDA is th e consequence of thiscustomer growth, which will help us to self-fund further growth in the U.S. business. So this is becoming a selffunding platform, which is creating more momentum in the marketplace.So far, we are v ery proud of what we’re doing. Esp ecially if y ou look to the design of some of the EE shops or if y oulook to the branding of Sprint, they are copy -pasting what we are doing and try ing to do that, so I think themomentum of our proposition is unbroken, and therefore whatever we do, we do i t for creating additional v alue in1-877-FACTSET www.callstreet.com11Copyright 2001-2014 FactSet CallStreet, LLC

Deutsche Telekom AG (DTE.DE)Q1 2014 Earnings CallFormatted Report08-May-2014the U.S. market. There is no pressure. There is no hurry for selling a business at that point in time. We hav e a self funding platform which is nicely dev eloping.That said, correct, we will hav e an ex piry of the lock-up by the end of the y ear, so that we are open to sell some ofthe stock here; and, right, there’s even a lot of speculation with regard to spend. I do not want to put oil into thefire on that one in this conference call, but I reiterate what I’v e said alwa y s. We are open to create the supermav erick. I think to really create v alue in the market at a higher speed with a better network, with ev en morespectrum, a combination, for instance, with one of the play ers, would make a lot of sense to create a supermav erick against AT&T, against this bifurcated market in the U.S.So, therefore, if there would be an opportunity , it would be [indiscernible] (29:56). But y ou ev en know that theFCC and the DoJ make their statements. They want to keep this environment open for four players. I could alwayssay , look, y ou could say, if y ou want that, what are, let’s say , then the prerequisites from a spectrum policy , fromreserv ed spectrum, and from adv antages to compete with these two big play ers.This is something which we’re going to see next week because the FCC is set to propose pro -competitive spectrumauction rules for the nex t y ear’s 600 megahertz incentiv e auctions. I ev en hav e heard that there might be aspectrum reserv ation for smaller carriers. Let’s see what we will hear at the 1 5th of May on that subject. So,therefore, it is too early to say something on how it’s developing, but we have a v ery good momentum at that pointin time. With regard to the spectrum auction, we are waiting for the design which is coming , and we plan toparticipate in the auction nex t y ear.Frederic E. BoulanAnalyst, Nomura International PlcQTim, thank y ou v ery much.Thomas DannenfeldtChief Financial Officer, Deutsche Telekom AGAThe third question, I think, was on EE and the perspectives on BT entering the market here on the mobile side. Ithink, first of all, what Tim mentioned on the U.S. is true for the EE as well. It’s about v alue creation. Last y ear wec

Chief Executive Officer, Deutsche Telekom AG Thomas Dannenfeldt Chief Financial Officer, Deutsche Telekom AG Stephan Eger Head of Investor Relations, Deutsche Telekom AG . OTHER PARTICIPANTS Frederic E. Boulan Analyst, Nomura International Plc Ulrich W. Rathe Analyst, Jefferies