Ad-hoc | 31 October 2001 07:58

Deutsche Telekom AG part 1

Deutsche Telekom Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Bonn, October 31, 2001 Deutsche Telekom Group Preliminary key figures for the first three quarters of the 2001 financial year (January 1, 2001 to September 30, 2001) – Group revenue (incl. VoiceStream) increased by approximately 20% in the first three quarters to approximately EUR 35 billion – EBITDA from mobile communications (incl. VoiceStream) doubled compared with the same period last year from EUR 1.1 billion to EUR 2.2 billion – Double-digit percentage growth in adjusted Group EBITDA – Net income (excluding goodwill and UMTS costs) EUR 1.6 billion – Net debt reduced by EUR 5.8 billion in the third quarter to EUR 65.2 billion – 1.4 million T-DSL contracts marketed by the end of September – T-D1 further extended its leading market position in Germany Deutsche Telekom AG announces a preliminary indication of the corporate Group’s results for the first three quarters of the 2001 financial year. Deutsche Telekom emphasizes that these results are only initial results on the basis of current information. Deviations may arise between these figures and the final figures, which are to be published on November 28, 2001. Group revenue increased in the first three quarters of 2001 to approximately EUR 35 billion compared with EUR 29 billion in the same period last year. The U.S. mobile communications company VoiceStream accounted for approximately EUR 1.5 billion of this increase. Preliminary indications show a double-digit percentage increase in Group EBITDA compared with the same period last year, which is within the expected range. EBITDA from mobile communications (incl. VoiceStream) doubled in the first three quarters of 2001 compared with the same period last year, from EUR 1.1 billion to EUR 2.2 billion. end of ad-hoc-announcement (c)DGAP 31.10.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Net income before amortization of goodwill and UMTS costs (including the tax effect) amounted to EUR 1.6 billion. This includes the tax-free sale of shares in Sprint FON and PCS (EUR 1.9 billion) and the sale of the cable company in Baden-Württemberg (EUR 0.5 billion after taxes). Results were reduced by the nonscheduled write-down on the net carrying amount of the stake in France Telecom (EUR 0.4 billion) due to the decrease in the share price. Amortization of goodwill increased to EUR 1.8 billion in the first three quarters and was thus 125% higher than in the same period last year (EUR 0.8 billion). UMTS costs taking into account the tax effect, amounted to EUR 0.9 billion in the first three quarters of 2001, compared with EUR 0.4 billion in the same period last year. Net debt Net debt at September 30, 2001 decreased as expected by EUR 5.8 billion compared with the level at June 30, 2001. This development is mainly attributable to the sale of shares in Sprint PCS for EUR 1.6 billion, the sale of the cable business in Baden-Württemberg amounting to EUR 0.9 billion (both with cash effect), the cash injection from the remainder of the purchase price for WIND, EUR 2.3 billion, and from currency exchange rate fluctuations. If these figures are adjusted for the effect of the consolidation of VoiceStream (EUR 8.3 billion net debt and EUR 4.9 cash portion of the merger consideration), this also means a reduction in net debt of EUR 3.4 billion compared with the figure at September 30, 2000 of EUR 55.4 billion. Deutsche Telekom is continuing its debt reduction program. The sale of further non-core assets and a cash injection from other financing activities (asset backed securities) is expected in the coming months. Billions of EUR 30.09.01 30.06.01 Change Net debt 65.2 71.0 -5.8 End of part 1, part 2 to follow ——————————————————————————– WKN: 555750; Index: DAX, EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, Stuttgart und München; EUREX; New York (ADS); Tokio; Toronto 310758 Okt 01