T-Systems records external and international growth in the first quarter

• Declining intra-Group business squeezing total revenue.
• Big deals from South Africa (OMG) and England (BAT).
• Margin improving.

Systems Solutions began the first quarter of 2012 with its revenue from international business increasing by 3.5 percent to EUR 758 million. Externally generated revenues also increased year-on-year, albeit only slightly by 0.6 percent, due to sustained price and competitive pressure.

Revenue generated within the Group decreased as planned. This contribution to reducing costs at Deutsche Telekom outweighed the growth in revenue with external customers. Total revenue therefore decreased by 0.7 percent year-onyear in the first three months to EUR 2.2 billion.

The adjusted EBIT margin, the most important indicator of Systems Solutions' profitability, saw a slight improvement of 1.3 percent to 2.0 percent compared with the prior-year period. Adjusted EBITDA amounted to EUR 192 million. This represents a 1.6-percent year on-year increase.

T-Systems secured big deals from Old Mutual Group (OMG) and British American Tobacco (BAT) in the first quarter. Overall, there was a 33-percent decrease in orders compared with the first quarter of 2011. It should be noted that the high prior-year figure resulted from the big deal with Everything Everywhere.

T-Systems is offering a new telematics solution in the field of connected cars. Since February 2012, forwarding companies can use cloud-based services to plan their routes more efficiently, thereby cutting maintenance costs and saving up to 20 percent on fuel. With TelematicOne, T-Systems delivers a central control unit for all logistics activities, including accessing the position details of trucks, controlling the temperature of goods, and recording transportation routes, containers, and trailers in real time.


Systems Solutions operating segment*:

Comments on the table:
a   Non-core activities and consolidation.

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About Deutsche Telekom
Deutsche Telekom is one of the world’s leading integrated telecommunications companies with over 129 million mobile customers, 34 million fixed-network lines and approximately 17 million broadband lines (as of December 31, 2011). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has over 235,000 employees worldwide. The Group generated revenues of EUR 58.7 billion in the 2011 financial year - more than half of it outside Germany (as of December 31, 2011).

About T-Systems
Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. The company's some 48,200 employees combine industry expertise and ICT innovations to add significant value to customers’ core business all over the world.
T-Systems generated revenue of around EUR 9.2 billion in the 2011 financial year.