Ad-hoc | 13 May 2004 06:30

Ad-hoc announcement of Deutsche Telekom AG, part 1

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Bonn, May 13, 2004 Deutsche Telekom continues to record profitable growth in difficult market environment. – Organic growth in net revenue of around 7.5 percent, excluding changes in the consolidated group and the effect of exchange rate fluctuations – Reported net revenue increased by around 2.7 percent to EUR 14.0 billion – Organic growth in adjusted EBITDA of 6.2 percent – Reported adjusted Group EBITDA increased by 2.4 percent to EUR 4.6 billion – Reported Group EBITDA decreased year-on-year from EUR 4.9 billion to EUR 4.5 billion – Adjusted results from ordinary business activities increased year-on-year by EUR 0.3 million to EUR 0.4 million – Adjusted net income increased year-on-year from EUR 113 million to EUR 227 million despite additions to accruals of EUR 148 million for Toll Collect – Free cash flow before dividend increased considerably from EUR 2.0 billion to EUR 2.9 billion. – Net debt reduced by an additional EUR 2 billion to EUR 44.6 billion compared with EUR 46.6 billion at the end of 2003; and by EUR 11.7 billion year-on-year End of ad hoc notification end of ad-hoc-announcement (c)DGAP 13.05.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Information and elaborations of the issuer concerning this ad hoc notification Despite the continued weak economic environment and increased pressure from competitors and regulation, Deutsche Telekom continued its course of profitable growth in the first quarter of 2004 in particular due to the positive development of its international business activities. Based on a more comparable consolidated group and excluding the effect of exchange rate fluctuations, net revenue increased organically by around 7.5 percent. Reported net revenue rose by 2.7 percent. Reported adjusted Group EBITDA grew by 2.4 percent. Organic growth in adjusted EBITDA amounted to 6.2 percent. Overview of selected key figures (first quarter of 2004) Q1/2004 Q1/2003 Change Change FY/2003 millions millions millions % millions of EUR of EUR of EUR of EUR Revenue 13,986 13,618 368 2.7 55,838 EBITDA adjusted for special factors 1) 4,585 4,476 109 2.4 18,288 EBITDA 1) 4,516 4,904 (388) (7.9) 18,475 Adjusted results from ordinary business activities 415 66 349 n.a. 1,122 Results from ordinary business activities 346 494 (148) (30.0) 1,398 Adjusted net income 227 113 114 n.a. 222 Net income 169 853 (684) (80.2) 1,253 Net cash provided by operating activities 4,250 3,117 1,133 36.3 14,316 Free cash flow before dividend 2,900 2,004 896 44.7 8,285 Investments in property, plant and equipment, and intangible assets (excl. goodwill) (1,019) (909) (110) (12.1) (6,234) Net debt at balance sheet date (billions of EUR) 44.6 56.3 11.7 20.8 46.6 Selected key figures of the divisions T-Com Q1/2004 Q1/2003 Change FY/2003 millions millions % millions of EUR of EUR of EUR Total revenue 6,975 7,490 (6.9) 29,206 EBITDA 1) 2,605 2,878 (9.5) 10,164 Adjusted EBITDA 2) 2,641 2,674 (1.2) 10,356 T-Mobile Q1/2004 Q1/2003 Change FY/2003 millions millions % millions of EUR of EUR of EUR Total revenue 5,944 5,310 11.9 22,778 EBITDA 1) 1,677 1,514 10.8 7,016 Adjusted EBITDA 2) 1,677 1,514 10.8 6,671 T-Systems Q1/2004 Q1/2003 Change FY/2003 millions millions % millions of EUR of EUR of EUR Total revenue 2,475 2,560 (3.3) 10,614 EBITDA 1) 301 368 (18.2) 1,412 Adjusted EBITDA 2) 301 286 5.2 1,415 End of part 1 of elaborations concerning this ad hoc notification of Deutsche Telekom AG, part 2 follows ——————————————————————————– WKN: 555750; ISIN: DE0005557508; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX; London; Amsterdam; NASDAQ Europe; Virtex; New York (ADR); Tokio 130630 Mai 04