Bond Telekom Deutschland 4.875% ( XS0230363805 ) in GBP

Issuer Telekom Deutschland
Market price 100 %  ▼ 
Country  Germany
ISIN code  XS0230363805 ( in GBP )
Interest rate 4.875% per year ( payment 1 time a year)
Maturity 23/09/2014 - Bond has expired



Prospectus brochure of the bond Deutsche Telekom XS0230363805 in GBP 4.875%, expired


Minimal amount 1 000 GBP
Total amount 250 000 000 GBP
Detailed description Deutsche Telekom is a major German telecommunications company offering fixed-line and mobile phone services, internet access, and IPTV across Germany and internationally.

The Bond issued by Telekom Deutschland ( Germany ) , in GBP, with the ISIN code XS0230363805, pays a coupon of 4.875% per year.
The coupons are paid 1 time per year and the Bond maturity is 23/09/2014









Debt Issuance Programme Prospectus
4 April 2024
This document constitutes a base prospectus for the purposes of Article 8(1) of Regulation (EU) No 2017/1129 of the European
Parliament and of the Council of 14 June 2017 (as amended, the "Prospectus Regulation") of Deutsche Telekom AG in respect
of non-equity securities within the meaning of Article 2(c) of the Prospectus Regulation (the "Prospectus").

Deutsche Telekom AG
Bonn, Federal Republic of Germany

EUR 35,000,000,000
Debt Issuance Programme
(the "Programme")
This Prospectus has been approved by the Luxembourg Commission de Surveillance du Secteur Financier
(the "CSSF"), which is the Luxembourg competent authority for the purpose of the Prospectus Regulation.
Application has been made to list Notes to be issued under the Programme on the official list of the Luxembourg
Stock Exchange and to trade Notes on the regulated market "Bourse de Luxembourg". The Luxembourg Stock
Exchange's regulated market is a regulated market (the "Regulated Market") for the purposes of the Markets in
Financial Instruments Directive (EU) 2014/65 of the European Parliament and of the Council of 15 May 2014
(as amended, "MiFID II"). Notes issued under the Programme may also not be listed at al .
The Issuer has requested the CSSF to provide the competent authorities in the Federal Republic of Germany
("Germany"), The Netherlands, the Republic of Ireland and the Republic of Austria, with a certificate of approval
attesting that this Prospectus has been drawn up in accordance with the Prospectus Regulation ("Notification").
The Issuer may request the CSSF to provide competent authorities in additional host Member States within the
European Economic Area with a Notification.
The CSSF has only approved this Prospectus as meeting the standards of completeness, comprehensibility and
consistency imposed by the Prospectus Regulation. Such an approval should not be considered as an endorsement
of the Issuer or the quality of any Notes that are the subject of this Prospectus. Neither does the CSSF give any
undertaking as to the economic and financial soundness of the operation or the quality or solvency of the Issuer
pursuant to Article 6(4) of the Luxembourg law of 16 July 2019 on prospectuses for securities (Loi du 16 juil et 2019
relative aux prospectus pour valeurs mobilières) by approving this Prospectus. Potential investors should make
their own assessment as to the suitability of investing in the Notes.
See "Risk Factors" for a discussion of certain factors which should be considered by potential investors in
connection with an investment in any of the Notes.
Arranger
Deutsche Bank
Dealers
Barclays
BNP PARIBAS
Citigroup
Deutsche Bank
DZ BANK AG
Goldman Sachs Bank
Europe SE
Morgan Stanley
NatWest Markets
Société Générale
Corporate & Investment
Banking
UniCredit
This Prospectus has been filed with the CSSF and will be published in electronic form on the website of the
Luxembourg Stock Exchange (www.LuxSE.com) and the website of Deutsche Telekom AG
(http://www.telekom.com/bonds). This Prospectus succeeds the Prospectus dated 4 April 2023 pertaining to the
Programme.





Responsibility Statement
Deutsche Telekom AG ("Deutsche Telekom AG", the "Issuer" or the "Company" and together with its
consolidated subsidiaries, "Deutsche Telekom", the "Group" or "Deutsche Telekom Group") with its
registered office in Bonn is solely responsible for the information given in this Prospectus and for the
information which wil be contained in the Final Terms (as defined herein).
The Issuer hereby declares that, having taken al reasonable care to ensure that such is the case, the
information contained in this Prospectus is, to the best of its knowledge, in accordance with the facts
and contains no omission likely to affect its import.
Notice
This Prospectus should be read and construed in conjunction with any supplement thereto and with any
document incorporated herein by reference (the "Reference Documents"). Full information on the
Issuer and any tranche of Notes (as hereinafter defined) is only available on the basis of this Prospectus
as supplemented, together with the Reference Documents and the relevant final terms (the "Final
Terms").
The Issuer has confirmed to the dealers specified under "Names and Addresses" below and any
additional dealer appointed from time to time under the Programme (each a "Dealer" and together the
"Dealers") that this Prospectus contains, as of the date hereof, all information with regard to the Issuer
and the Notes which is material in the context of the Programme and the issue and offering of Notes
thereunder; that the information contained herein with respect to the Issuer and the Notes is accurate in
all material respects and is not misleading; that any opinions and intentions expressed herein are
honestly held and based on reasonable assumptions; that there are no other facts, the omission of which
would make any statement, whether fact or opinion, in this Prospectus misleading in any material
respect; and that al reasonable enquiries have been made to ascertain all facts and to verify the
accuracy of all statements contained herein.
No person has been authorised to give any information which is not contained in or not consistent with
this Prospectus or any other document entered into in relation to the Programme or any information
supplied by the Issuer or such other information as in the public domain and, if given or made, such
information must not be relied upon as having been authorised by the Issuer, the Dealers or any of them.
Neither the Arranger nor any Dealer nor any other person mentioned in this Prospectus, excluding the
Issuer, is responsible for the information contained in this Prospectus or any supplement thereof, or any
Final Terms or any other Reference Document, and accordingly, and to the extent permitted by the laws
of any relevant jurisdiction, none of these persons accepts any responsibility as to the accuracy and
completeness of the information contained in any of these documents.
This Prospectus is valid until its expiration on 4 April 2025 and this Prospectus and any supplement
hereto as wel as any Final Terms reflect the status as of their respective dates of issue. There is no
obligation to supplement this Prospectus in the event of significant new factors, material mistakes or
material inaccuracies when this Prospectus is no longer valid. The delivery of this Prospectus as
supplemented or any Final Terms and the offering, sale or delivery of any Notes may not be taken as
an implication that the information contained in such documents is accurate and complete subsequent
to their respective dates of issue or that there has been no adverse change in the financial condition of
the Issuer since such date or that any other information supplied in connection with the Programme is
accurate at any time subsequent to the date on which it is supplied or, if different, the date indicated in
the document containing the same.
The Issuer has undertaken with the Dealers to supplement this Prospectus or publish a new Prospectus
at any time after submission of this Prospectus for approval to the CSSF if and when the information
herein should become materially inaccurate or incomplete or in the event of any significant new factor,
that is capable of affecting the assessment of the Notes by potential investors.
The Notes will not be registered under the United States Securities Act of 1933, as amended, and will
be represented by global notes in bearer form that are subject to United States ("U.S.") tax law
requirements. Subject to certain exceptions, Notes may not be offered, sold or delivered within the
United States or to U.S. persons, see "Sel ing Restrictions".
2




The distribution of this Prospectus and any Final Terms and the offering, sale and delivery of the Notes
in certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus or any
Final Terms comes are required by the Issuer and the Dealers to inform themselves about and to
observe any such restrictions. For a description of certain restrictions on offers, sales and deliveries of
Notes and on the distribution of this Prospectus or any Final Terms and other offering material relating
to the Notes, see "Selling Restrictions".
This Prospectus is drawn up in the English language. The German versions of the English language
Terms and Conditions are shown in this Prospectus for additional information. As to form and content,
and al rights and obligations of the Holders and the Issuer under the Notes to be issued, German is the
controlling legal y binding language if so specified in the relevant Final Terms. The Issuer accepts
responsibility for the information contained in this Prospectus and confirms that the non-binding
translation of the Terms and Conditions, either in the German or English language, correctly and
adequately reflects the respective binding language version.
The Final Terms in respect of any Notes may include a legend entitled "EEA MiFID II Product
Governance" which will outline the target market assessment in respect of the Notes and which channels
for distribution of the Notes are appropriate. Any person subsequently offering, selling or recommending
the Notes (a "Distributor") should take into consideration the target market assessment; however, a
Distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect
of the Notes (by either adopting or refining the target market assessment) and determining appropriate
distribution channels.
A determination wil be made in relation to each issue about whether, for the purpose of the MiFID
Product Governance rules under EU Delegated Directive 2017/593, as amended (the "MiFID Product
Governance Rules"), any Dealer subscribing for any Notes is a manufacturer in respect of such Notes,
but otherwise neither the Arranger nor the Dealers nor any of their respective affiliates will be a
manufacturer for the purpose of the MiFID Product Governance Rules.
If the Final Terms in respect of any Notes include a legend entitled "Prohibition of Sales to EEA Retail
Investors", the Notes are not intended to be offered, sold or otherwise made available to and should not
be offered, sold or otherwise made available to any retail investor in the European Economic Area
("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client
as defined in point (11) of Article 4(1) of MiFID II; or (ii) a customer within the meaning of Directive (EU)
2016/97 (as amended, the "IDD"), where that customer would not qualify as a professional client as
defined in point (10) of Article 4(1) of MiFID II; or (i i) not a qualified investor as defined in the Prospectus
Regulation. If the above-mentioned legend is included in the relevant Final Terms, no key information
document required by Regulation (EU) 1286/2014 (as amended, the "PRIIPs Regulation") for offering
or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared
and therefore offering or selling the Notes or otherwise making them available to any retail investor in
the EEA may be unlawful under the PRIIPs Regulation.
The Final Terms in respect of any Notes may include a legend entitled "UK MiFIR Product Governance"
which wil outline the target market assessment in respect of the Notes and which channels for
distribution of the Notes are appropriate. Any Distributor should take into consideration the target market
assessment; however, a Distributor subject to the Financial Conduct Authority ("FCA") Handbook
Product Intervention and Product Governance Sourcebook (the "UK MiFIR Product Governance
Rules") is responsible for undertaking its own target market assessment in respect of the Notes (by
either adopting or refining the target market assessment) and determining appropriate distribution
channels.
A determination will be made in relation to each issue about whether, for the purpose of the UK MiFIR
Product Governance Rules, any Dealer subscribing for any Notes is a manufacturer in respect of such
Notes, but otherwise neither the Arranger nor the Dealers nor any of their respective affiliates will be a
manufacturer for the purpose of the UK MiFIR Product Governance Rules.
If the Final Terms in respect of any Notes includes a legend entitled "Prohibition of Sales to UK Retail
Investors", the Notes are not intended to be offered, sold or otherwise made available to and should not
be offered, sold or otherwise made available to any retail investor in the United Kingdom of Great Britain
and Northern Ireland ("UK"). For these purposes, a retail investor means a person who is one (or more)
of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part
of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA"); or (ii) a customer
3




within the meaning of the provisions of the Financial Services and Markets Act 2000 (as amended,
"FSMA") and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97,
where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of
Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (i i) not a
qualified investor as defined in the Prospectus Regulation as it forms part of domestic law by virtue of
the EUWA. If the above-mentioned legend is included in the relevant Final Terms, no key information
document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the
EUWA (the "UK PRIIPs Regulation") for offering or selling the Notes or otherwise making them
available to retail investors in the UK has been prepared and therefore offering or selling the Notes or
otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs
Regulation.
This Prospectus may only be used for the purpose for which it has been published.
Each Dealer and/or each further financial intermediary subsequently reselling or finally placing
Notes issued under the Programme is entitled to use this Prospectus as set out in "Consent to
the Use of this Prospectus" below.
This Prospectus and any Final Terms must not be used for the purpose of an offer or solicitation
by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person
to whom it is unlawful to make such an offer or solicitation.
In connection with the issue of any Tranche of Notes under the Programme, the Dealer(s) who
is(are) specified in the relevant Final Terms as the stabilisation manager(s) (or persons acting
on its(their) behalf) may overallot Notes or effect transactions with a view to supporting the price
of the Notes at a level higher than that which might otherwise prevail. However, stabilisation may
not necessarily occur. Any stabilisation action may begin at any time after the adequate public
disclosure of the relevant Final Terms of the offer of the Notes is made and, if begun, may cease
at any time, but it must end no later than the earlier of 30 days after the Issue Date and 60 days
after the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or over-
allotment must be conducted by the relevant stabilisation manager(s) (or persons acting on
behalf of any stabilisation manager(s)) in accordance with all applicable laws and rules.
All terms not otherwise defined in this Prospectus shal have the meaning as set out in the "Terms and
Conditions" of the Notes.
Any websites included in this Prospectus, except for the websites specified in the context of the
documents incorporated by reference, are for information purposes only and do not form part of this
Prospectus and have not been scrutinised or approved by the CSSF.
Interest amounts payable under Notes bearing a floating interest rate ("Floating Rate Notes") are
calculated by reference to the Euro Interbank Offered Rate ("EURIBOR") which is provided by the
European Money Markets Institute ("EMMI"). As at the date of this Prospectus, EMMI appears on the
register of administrators and benchmarks established and maintained by the European Securities and
Markets Authority ("ESMA") pursuant to Article 36 of the Benchmarks Regulation (Regulation (EU)
2016/1011 as amended) ("BMR").
Forward-Looking Statements
This Prospectus contains certain forward-looking statements. A forward-looking statement is a
statement that does not relate to historical facts and events. They are based on analyses or forecasts
of future results and estimates of amounts not yet determinable or foreseeable. These forward-looking
statements are identified by the use of terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases,
including references and assumptions. This applies, in particular, to statements in this Prospectus
containing information on future earning capacity, plans and expectations regarding Deutsche Telekom
Group's business and management, its growth and profitability, and general economic and regulatory
conditions and other factors that affect it.
Forward-looking statements in this Prospectus are based on current estimates and assumptions that
the Issuer makes to the best of its present knowledge. These forward-looking statements are subject to
risks, uncertainties and other factors which could cause actual results, including Deutsche Telekom
Group's financial condition and results of operations, to differ materially from and be worse than results
4




that have expressly or implicitly been assumed or described in these forward-looking statements.
Deutsche Telekom Group's business is also subject to a number of risks and uncertainties that could
cause a forward-looking statement, estimate or prediction in this Prospectus to become inaccurate.
Accordingly, investors are strongly advised to read the section of this Prospectus titled "Risk Factors"
which includes more detailed descriptions of factors that might have an impact on Deutsche Telekom's
business and the markets in which it operates.
In light of these risks, uncertainties, assumptions and future events described in this Prospectus may
not occur. In addition, neither the Issuer nor the Dealers assume any obligation, except as required by
law, to update any forward-looking statement or to conform these forward-looking statements to actual
events or developments.
5




Table of Contents
Responsibility Statement ..........................................................................................................................2
Notice ........................................................................................................................................................2
Forward-Looking Statements ...................................................................................................................4
General Description of the Programme ....................................................................................................7
Risk Factors ..............................................................................................................................................8
Risk Factors regarding the Issuer .................................................................................. 8
Risk Factors regarding the Notes ................................................................................ 15
Deutsche Telekom AG .......................................................................................................................... 18
Consent to the Use of the Prospectus ................................................................................................... 50
Issue Procedures ................................................................................................................................... 51
Terms and Conditions ........................................................................................................................... 53
Option I ­ Terms and Conditions that apply to Notes with fixed interest rates ............ 54
Option II - Terms and Conditions that apply to Notes with floating interest rates ....... 80
Form of Final Terms/Muster der Endgültigen Bedingungen ............................................................... 112
Taxation ............................................................................................................................................... 130
General Information ............................................................................................................................. 131
Selling Restrictions .............................................................................................................................. 131
Use of Proceeds .................................................................................................................................. 135
Listing and Admission to Trading Information ..................................................................................... 135
Authorisation ........................................................................................................................................ 135
Incorporation by Reference / Documents Available ............................................................................ 136
Names and Addresses ........................................................................................................................ 138

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General Description of the Programme
Under this EUR 35,000,000,000 Debt Issuance Programme, Deutsche Telekom may from time to time
issue notes (the "Notes"). The maximum aggregate principal amount of the Notes from time to time
outstanding under the Programme wil not exceed EUR 35,000,000,000 (or its equivalent in any other
currency). The Issuer may increase the amount of the Programme in accordance with the terms of the
Dealer Agreement (as defined herein) from time to time.
The Notes may be issued on a continuing basis to one or more of the Dealers and any additional Dealer
appointed under the Programme from time to time by the Issuer, which appointment may be for a specific
issue or on an ongoing basis. Notes may be distributed by way of offer to the public or private placements
and, in each case, on a syndicated or non-syndicated basis. The method of distribution of each Tranche
will be stated in the relevant Final Terms. Notes may be offered to qualified and non-qualified investors,
unless the applicable Final Terms include a legend entitled "Prohibition of Sales to EEA Retail Investors"
or "Prohibition of Sales to UK Retail Investors".
Notes will be issued in tranches (each a "Tranche"), each Tranche consisting of Notes which are
identical in all respects. One or more Tranches, which are expressed to be consolidated and forming a
single series and identical in all respects, except for issue dates, interest commencement dates and/or
issue prices may form a series ("Series") of Notes. Further Notes may be issued as part of existing
Series.
Notes wil be issued in such denominations as may be agreed between the Issuer and the relevant
Dealer(s) and as indicated in the applicable Final Terms save that the minimum denomination of the
Notes wil be, if in euro, EUR 1,000 and if in any currency other than euro, in an amount in such other
currency nearly equivalent to EUR 1,000 at the time of the issue of the Notes.
Notes will be issued with a maturity of twelve months or more. The Notes wil be freely transferable.
Notes may be issued at an issue price which is at par or at a discount to, or premium over, par. The
issue price for Notes to be issued will be determined at the time of pricing on the basis of a yield which
will be determined on the basis of the orders of the investors which are received by the Dealers during
the offer period. Orders wil specify a minimum yield and may only be confirmed at or above such yield.
The resulting yield wil be used to determine an issue price, al to correspond to the yield.
The yield for Notes with fixed interest rates wil be calculated by the use of the ICMA method, which
determines the effective interest rate of notes taking into account accrued interest on a daily basis.
Unless otherwise permitted by then current laws and regulations, Notes in respect of which the issue
proceeds are to be accepted by the Issuer in the UK wil have a minimum redemption amount of
GBP 100,000 (or its equivalent in other currencies), unless such Notes may not be redeemed until on
or after the first anniversary of their date of issue.
Application has been made to list Notes issued under the Programme on the official list of and to admit
such Notes to trading on the Regulated Market of the Luxembourg Stock Exchange. Under the
Programme Notes may also be issued which wil not be listed on any Stock Exchange.
Notes will be accepted for clearing through one or more Clearing Systems as specified in the applicable
Final Terms. These systems will include those operated by Clearstream Banking AG, Frankfurt am Main
("CBF"), Clearstream Banking S.A. ("CBL") and Euroclear Bank SA/NV ("Euroclear"). Notes
denominated in euro or, as the case may be, such other currency recognised from time to time for the
purposes of eligible collateral for Eurosystem monetary policy and intra-day credit operations by the
Eurosystem, are intended to be held in a manner, which would al ow Eurosystem eligibility. Therefore,
these Notes will initially be deposited upon issue with (i) either CBL or Euroclear as common safekeeper
in the case of a new global note or, (ii) CBF. It does not necessarily mean that the Notes wil be
recognised as eligible col ateral for Eurosystem monetary policy and intra-day credit operations by the
Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon
satisfaction of the Eurosystem eligibility criteria.


7




Risk Factors
Potential investors should consider all information provided in this Prospectus and the Reference
Documents. In addition, potential investors should be aware that the risks described may combine and
thus accumulate.
Certain of the Dealers and their affiliates have engaged, and may in the future engage, in investment
banking and/or commercial banking transactions with, and may perform services for, the Issuer and its
affiliates in the ordinary course of business.
Each potential investor in any Notes must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
(i)
have sufficient knowledge and experience to make a meaningful evaluation of the relevant
Notes, the merits and risks of investing in the relevant Notes and the information contained or
incorporated by reference in this Prospectus or any applicable supplement;
(i )
have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation and the investment(s) it is considering, an investment in the Notes
and the impact the Notes will have on its overal investment portfolio;
(i i)
have sufficient financial resources and liquidity to bear all of the risks of an investment in the
relevant Notes, including where the currency for principal or interest payments is different from
the potential investor's currency;
(iv)
understand thoroughly the terms of the relevant Notes and be familiar with the behaviour of
financial markets; and
(v)
be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.
The following is a disclosure of risk factors that are material to the Issuer and that may affect the
Issuer's ability to fulfil its obligations under the Notes. Potential investors should consider these
risk factors before deciding to purchase Notes issued under the Programme. Investors may lose
the value of their entire investment or part of it in the event one or more of the risks regarding
the Issuer described below materialises.
Risk Factors regarding the Issuer
The risk factors regarding the Issuer are presented in the following categories with the most
material risk factor presented first in each category:
·
Industry, Competition and Strategy
·
Regulation
·
Environmental, social and governance
·
Operational
·
Brand, Communication and Reputation
·
Litigation and Anti-Trust Proceedings
·
Financial
1) Industry, Competition and Strategy
Deutsche Telekom faces intense competition in all areas of its business, which could lead to
reduced prices for its products and services and a decrease in market share in certain service
areas, thereby adversely affecting Deutsche Telekom's revenues and net profit.
Competitive pressure is expected to continue in Germany and Europe and Deutsche Telekom is
expecting market prices for mobile voice telephony and mobile data services to continual y decrease.
Competition is high and increasing in the US as the market saturation in the wireless industry is leading
to an increased war for customers. This would adversely affect Deutsche Telekom's competitive position
in the US market and its ability to grow. All segments would be affected by new market entrants such
as major internet and consumer electronics industry players as wel as regional network operators that
8




could continue to increase their market share. Smaller competitors could take unforeseen and
aggressive pricing measures. Current competitors can win new customers by cutting prices and offering
limited or even unlimited discounts. Deutsche Telekom Systems Solutions operating segment also faces
chal enges. Continued strong competition and persistent price erosion are adversely affecting traditional
information and communication technology ("ICT") business. In addition, the technological shift toward
cloud solutions and digitalisation in the IT sector is prompting new, strongly capitalised, competitors to
enter the market. Therefore, Deutsche Telekom continues to be threatened by further losses in market
share as wel as decreasing margins. This in turn lead to lower revenues, cash flows and worsen the
overall financial condition and reputation of Deutsche Telekom.
Weaker economic prospects and political uncertainties could adversely affect Deutsche
Telekom's customers' purchases of products and services in each of the operating segments,
which could have a negative impact on the operating results and overall financial condition of
Deutsche Telekom.
Political uncertainties and geopolitical crises fuel negative economic developments, such as high
inflation, economic recession or lower income per household, and pose a risk to future economic growth.
This means that any of Deutsche Telekom's footprint countries that would be affected by such actual or
even possible growth slowdown as private and business customers would decrease their consumption
of telecommunication services. This in turn lead to lower revenues, cash flows and worsen the overal
financial condition and reputation of Deutsche Telekom.
Deutsche Telekom could be directly or indirectly affected by geopolitical turmoil or
confrontations, or other related effects, which could adversely affect Deutsche Telekom's
reputation and financial results.
Deutsche Telekom's footprint and supply chains are intertwined on a global level. Should economic,
political and/or technological tensions continue to rise between rival geopolitical powers, the risk of
belligerent conflict between states could have severe global consequences including biological,
chemical, cyber and/or physical attacks, military interventions, or the collapse of states. Furthermore,
geopolitical incidents could be the cause of additional related effects such as higher inflation or a surge
in energy prices. Such an international crisis would affect the business of Deutsche Telekom and the
business of its suppliers and partners leading to lower revenues, cash flows and could worsen the overal
financial condition and reputation of Deutsche Telekom.
Deutsche Telekom is exposed to the economic effects of pandemic outbreaks, which could delay
or reduce cash flow or reduce the usage of its products and services. Furthermore, it could lead
to delays in network upgrading and supply chains thereby adversely affecting Deutsche
Telekom's revenues and net profit.
A pandemic is impossible to predict and could bring great uncertainty on the economy and the respective
impacts on Deutsche Telekom's business and financial results. This could include but is not limited to a
decline of roaming volumes, lower subscriber growth, increasing bad debt of business and consumer
subscribers. If a pandemic outbreak should occur and quickly spread, it could cause significant negative
effects on network improvements and maintenance, procurement and the supply chain. Such pandemic
outbreaks could impact Deutsche Telekom at any time resulting in decreasing margins, lower revenues
or delays in cash flows. This would ultimately worsen the overal financial condition and possibly even
the reputation of Deutsche Telekom.
A substantive or temporal deviation from planned measures for strategic transformation and
integration may reduce its benefits and this could negatively impact Deutsche Telekom's
business situation, financial position and operational results.
Deutsche Telekom is in a continuous process of strategic adjustments and cost-cutting initiatives. If
Deutsche Telekom is unable to implement these projects as planned, the benefits could be less than
original y estimated or arrive later than expected or even not at all. Also, merger related integration of
operational areas as wel as fulfilment of various conditions imposed by the authorities are complex and
could jeopardise the realisation of planned synergies. Each of these factors, individual y or combined,
could have a negative impact on revenues, cash flows and worsen the overall financial condition and
reputation of Deutsche Telekom.
9




Deutsche Telekom is using Artificial Intelligence (AI) to boost efficiency and automation. Failure
to abide by ethical guidelines and lack of monitoring mechanisms could outweigh the overall
benefits of AI and could negatively impact Deutsche Telekom's business situation, financial
position and overall reputation.
Deutsche Telekom is leveraging Artificial Intel igence (AI) to improve customer experience, optimising
decision-making processes and increasing overall efficiency. If development and oversight is not
carefully managed with responsible oversight, internal and external AI applications could pose the risks
of potential misuse of company or corporate data, deriving inaccurate results (leading to false
conclusions), and lack of stakeholder trust if efficiency targets disregard ethical considerations or
customer well-being. These AI related factors could worsen the overal financial condition, lead to more
litigation and possibly even damage the reputation of Deutsche Telekom.
Deutsche Telekom may not realise either the expected level of demand for its new/existing
products and services, or the expected level and timing of revenues generated by those products
and services, on account of the lack of market acceptance or technological change, which could
adversely affect Deutsche Telekom's cash flows.
Deutsche Telekom may not succeed in making customers sufficiently aware of existing and future value-
added services or in creating customer acceptance of these services at the prices Deutsche Telekom
would want to charge. A lack of market acceptance for these new products and services could be fuelled
by an unwil ingness to pay for such additional features.
Furthermore, as innovation cycles continue to shrink, they confront the telecommunications sector with
the chal enge of bringing out new products and services at ever shorter intervals. New technologies are
superseding existing technologies, products, or services in part, in some cases even completely. Failure
to harness the potential of AI or other emerging technologies could dampen our ability to innovate. This
would lead to lower prices and revenues in both voice and data traffic. This in turn could lead to lower
revenues, cash flows and worsen the overal financial condition and reputation of Deutsche Telekom.
Deutsche Telekom regularly engages in large-scale programmes to reshape the information
technology ("IT") and network infrastructure to adapt to changing customer needs and
organisational and accounting requirements. The implementation of any of these programmes
may require substantial investments and failure to effectively plan and monitor them would lead
to misallocations of resources and impaired processes with negative consequences for
Deutsche Telekom's operations.
Deutsche Telekom's IT and network resources and infrastructure is the basis for innovative
telecommunications products and services that Deutsche Telekom offers or plans to offer in the future.
As Deutsche Telekom replaces the various architectures, access types and services with a standardised
architecture, the enormous complexity of the implementation of this IT initiative, malfunctions,
connectivity issues, implementation delays, inadequate planning and management and other
unforeseen problems could result in costly process impairments and remediation and possible extended
down-times of IT processes. These problems may hamper the attainment of Deutsche Telekom's goals
in terms of cost savings and quality improvements. As Deutsche Telekom's traditional platforms has
been replaced by an IP-based system, Deutsche Telekom's IT systems exposure to cyber-attacks,
"spam calls" and other disruptions could increase. These risks could lead to a temporary interruption of
Deutsche Telekom's IT resources and, as a result, impair the performance of Deutsche Telekom's
technical infrastructure. Additionally, if Deutsche Telekom is not ready in time to exploit the benefits of
technological advances (such as AI and automation), it could experience a decline in demand for its
services. System failures, security breaches, data protection violations, disruption of operations and
unauthorised use or impairment of Deutsche Telekom network and other systems could damage
Deutsche Telekom's reputation, increase costs and negatively impact revenues, cash flows and worsen
the overall financial condition of Deutsche Telekom.
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