Deutsche Telekom’s Finance Strategy

1. Attractive Payout-Policy for Shareholders *
For the years 2010-2012 Deutsche Telekom intends to pay out € 3.4 billion p.a. which consists of:

• an annual minimal dividend of € 0.70 per share
• an additional share-buyback of up to 1.2 billion € within 3 years

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%
• Gearing: 0.8-1.2
• Liquidity reserve covering maturities of coming 24 months

3. Increase of Return on Capital Employed
The central steering mechanism is the "Return on Capital Employed". This reflects not only the current profitability, but also includes investments of the past and the capital stock of the company as well.For 2012 Deutsche Telekom targets a ROCE increase of at least 1.5 percentage points (compared to 2009).

* Subject to approval from the responsible boards