Ad-hoc | 5 March 2002 07:55

Deutsche Telekom AG english

Ad hoc announcement of Deutsche Telekom AG (part 3) Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Part 3 of the ad hoc announcement of Deutsche Telekom AG end of ad-hoc-announcement (c)DGAP 05.03.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Special influences in 2001 In billions of EUR Impact on EBITDA Impact on net income Sprint FON and PCS +1.9 +1.9 Sale of cable cos. BaWü; DTKS +1.0 +0.7 Creation / reversal of accruals +0.1 +0.1 Write-down of brand names 0 -1.0 Write-down of real estate 0 -0.5 Amortization of financial assets 0 -0.9 Tax effect of Sprint 0 +0.9 Total 3.0 1.2 4. Net income The net income of the Group amounted to EUR -3.5 billion in the 2001 financial year, compared with EUR 5.9 billion in the previous year. Depreciation and amortization of EUR 15.2 billion (2000: EUR -13.0 billion) and net financial expense of EUR -5.3 billion (2000: EUR -1.2 billion) contributed to the net income. The special influences in the year 2000 amounting to EUR 7.4 billion (including the corresponding tax influences) are the reason for the considerable change in the unadjusted net income from EUR 5.9 billion to EUR -3.5 billion. There were special influences of only EUR 1.2 billion (including the corresponding tax influences) in 2001. The new consolidation of VoiceStream (excluding goodwill) also contributed EUR 1.9 billion to the decrease in net income, as did an increase of EUR 2.4 billion in the amortization of goodwill. Net income adjusted for special influences amounted to EUR -4.7 billion (2000: EUR -1.5 billion – the special influences are explained under points 3 and 4). Depreciation and amortization include of scheduled amortization of goodwill of EUR 2.6 billion (2000: EUR 1.2 billion), scheduled amortization of UMTS licenses of EUR 0.7 billion (2000: EUR 0.4 billion) and license amortization for VoiceStream of EUR 0.7 billion. The amortization of goodwill increased from EUR 1.2 billion in the previous year to EUR 3.6 billion. The following main special influences are included in depreciation and amortization: nonscheduled amortization of goodwill on brand names as part of the rebranding of the mobile communications subsidiaries in Europe amounting to EUR 1.0 billion and nonscheduled write-downs, mainly on real estate as part of the revaluation of the Group’s real estate, amounting to EUR 0.5 billion after taxes. The nonscheduled write-downs on copper cable were a special influence in the previous year, increasing depreciation and amortization by EUR 1.0 billion. The net financial expense includes approximately EUR 1.0 billion of net interest expense (2000: EUR 0.6 billion) for loans taken out to finance the acquisition of UMTS licenses. Net financial expense includes the following special influences: The nonscheduled write-downs on the net carrying amount of the investment in France Telecom (EUR 0.3 billion) due to fluctuations in share prices and other nonscheduled write-downs on financial assets (EUR 0.6 billion). Net financial expense in 2000 included the proceeds from the sale of Wind (EUR 2.3 billion) as a special influence. A valuation adjustment relating to the shares held in Sprint from the year 2000 was recognized for tax purposes in the 2001 financial year for the first time. This results in a special influence for the 2001 financial year as a tax credit of EUR 0.9 billion. 5. Net income before depreciation and amortization (cash earnings) In billions of EUR Dec. 31, 2001 Dec. 31, 2000 Net income -3.5 5.9 Depreciation and amortization -15.2 -13.0 Cash earnings** 11.8 18.9 minus accumulated special influences affecting income 1.2 7.4 minus special influences relevant for depr. and amor. 1.9 3.0 Cash earnings excluding special influences 8.7 8.5 ** Net income plus depreciation and amortization. Deutsche Telekom uses adjusted cash earnings as a simplified measure for estimating net cash provided by operating activities prior to special influences. The net loss not adjusted for special influences in the 2001 financial year was EUR 3.5 billion. Including depreciation and amortization amounting to EUR 15.2 billion, cash earnings total EUR 11.8 billion. Adjusted cash earnings excluding special influences increased from EUR 8.5 billion to EUR 8.7 billion. End of part 3, part 4 to follow ——————————————————————————– WKN: 555750; ISIN: DE0005557508; Index: DAX, EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, Stuttgart und München; EUREX; New York (ADS); Tokio; Toronto 050755 Mär 02