Deutsche Telekom’s Finance Strategy

Deutsche Telekom’s corporate strategy is supported by a financial strategy, which focuses on three key aspects.

1. Attractive Payout-Policy for Shareholders*
For the years 2012-2014 Deutsche Telekom intends to pay out a dividend as follows:

2012: € 0.70 per share (to be paid out in May 2013)
2013: € 0.50 per share (to be paid out in May 2014)
2014: € 0.50 per share (to be paid out in May 2015)
2015: re-visit

* Subject to approval from the responsible boards

2. Security for providers of debt capital
Deutsche Telekom seeks to have undisputed access to the debt capital markets at any time. Solid balance sheet ratios are meant to guarantee this access.Therefore Deutsche Telekom sets itself the following comfort zone targets/ratios:

Rating: A-/BBB
Ratio net debt/adj. EBITDA: 2 – 2.5x
Equity ratio: 25-35%
Liquidity reserve covering maturities of coming 24 months

3. Increase of Return on Capital Employed
The finance strategy focuses on three main topics to support the sustainable value generation.

Efficiency Management: Reduce indirect costs by € 2 bn (2015 vs 2012 baseline)
Portfolio Management: No big M&A, Strategic review of Scout Group and Everything Everywhere
Risk Management: Low risk country portfolio (85% of SotP)