Deutsche Telekom aims to become the first choice in digital daily life

  • Four strategic action areas for successfully mastering the sector's transformation
  • Seamless combination of networks to keep customers optimally connected at all times
  • A promise kept: A dividend of EUR 0.70 per share proposed for 2011

Deutsche Telekom wants to stand out more from its competitors and highlight its innovative strength in future. The Group will fight for every single customer with its own products and those developed in cooperation with partners, with secure cloud services and with high-performance, integrated networks, and live up to its clearly-worded aspiration. "We aim to be the first choice for connected life and work from our customers' perspective," said René Obermann, CEO of Deutsche Telekom, at the shareholders' meeting in Cologne on Thursday. "We will continue to successfully pursue the strategy we introduced in 2010. At the same time, the world and, in particular, our industry have moved forward over the last two years, so we are emphasizing certain aspects of our strategy and integrating new ideas to take account of this." In its aim to become the first choice for as many customers as possible, the Group is focusing on four strategic action areas:

  • Integrated networks for the gigabit society
  • Innovation through collaboration
  • Secure cloud solutions
  • Keeping customers delighted

The mobilization of the Internet, the widespread use of smartphones, and the introduction of cloud services even in small to medium-sized businesses and private life are seen as important drivers for a multi-faceted digital daily life. "We have demonstrated that we have the power to stand our ground even in a tough environment - and at the same time, undaunted, press ahead with the Group's transformation," said Mr. Obermann. The seamless combination of networks makes sure that customers are always optimally connected - wherever they are and regardless of the device they use. With a combination of in-house developments, partnerships, and shareholdings, Telekom is intensifying its cooperation with partners so as to drive business in growth areas. Secure and reliable cloud services are becoming increasingly important for Telekom's business, which is also demonstrated by the current figures for Systems Solutions. Telekom is also facing growing demands in direct contact with customers. "We need to fight for each and every customer in our core business. Processes need to be streamlined so that Telekom remains competitive in a constantly changing industry," explained Mr. Obermann and added that a renewal of the company was required to be able to tap into growth opportunities, become more innovative and faster. According to him, this is the reason why the Group's Headquarters is being streamlined and organized more efficiently, and why it is necessary to develop employees' skills and attract young talent and experienced experts all over the globe. The aim still is to compensate for the decline in revenue from traditional telephony, which is caused by regulatory interventions and tough competition, by increasing revenue in other fields. Revenue from strategic growth areas - mobile Internet, Connected Home, Internet services for consumers, external revenue of T-Systems and intelligent networks - is expected to rise to around EUR 29 billion in the years ahead, compared with around EUR 15 billion in 2009. "It was crucial and logical that we set out two years ago to tackle innovation fields beyond traditional fixed-network lines," stated Mr. Obermann. In his view, some of those fields should be accorded the time they need for their development. Despite the continuing economic crisis in several European countries and despite tough competition in the sector, Telekom is keeping its promise, focusing on dividend stability and reliability. The Board of Management and the Supervisory Board proposed to the shareholders a dividend of EUR 0.70 per share for the 2011 financial year at today's shareholders' meeting. As in the previous year, the 2011 dividend will be tax-free for shareholders in Germany.

This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows, and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor, or business initiatives, including acquisitions, dispositions, and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings, and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets and changes in interest and currency exchange rates may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.

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