Prospectus-Final (clean) - Malta Financial Services Authority

Vivento was established in 2002 with the goal of efficiently implementing Deutsche Telekom's staffrestructuring measures in a socially responsible manner. Through Vivento, displaced workers areretrained and equipped with new employment qualifications for permanent redeployment within theDeutsche Telekom Group or with external employers, or for project and temporary assignments.As of 31 December 2011, Vivento had a workforce of about 8,500 employees, including around 3,500who were deployed externally, mainly in the public sector, for example at the Federal EmploymentAgency. Approximately 3,300 additional employees were employed within the Group, particularly inservice centers. About 1,700 employees were placed in Vivento's operational and strategic units orcontinued to be managed by Vivento. While Vivento took on a total of around 1,500 new employeesfrom Deutsche Telekom's Group in 2011, around 1,900 employees left the personnel service providerto pursue new opportunities.At 31 December 2010, Vivento had a workforce of about 8,900, including around 3,600 employeeswho were deployed externally, mainly in the public sector, for example at the Federal EmploymentAgency. Approximately 3,300 additional employees were employed within the Group, including in theservice centers. About 2,000 employees were placed in Vivento's operational and strategic units orcontinued to be managed by Vivento. Approximately 2,200 employees from the Deutsche TelekomGroup were transferred to Vivento in 2010, while around 2,800 employees left Vivento in 2010 topursue new employment opportunities. Vivento found permanent public-sector positions for around800 of them, approximately 700 of which were at the Federal Employment Agency.Deutsche Telekom's property management unit continued to focus on further streamlining andimproving the real estate portfolio in 2011. Overall, Deutsche Telekom closed a total of 186 propertysales in 2011, involving 209,000 square meters of floor space and 2.4 million square meters of land.Deutsche Telekom received cash inflows of EUR 0.1 billion from these sales. Deutsche Telekomreduced leased floor space by another 52,000 square meters net due to the ongoing drive to optimisefloor space and corporate sites. Rising rental and ancillary costs, however, meant that leasing andfacility management costs in 2011 remained at the prior-year level.In 2010, Deutsche Telekom closed a total of 196 sales deals, involving 149,000 square meters of floorspace and 1.5 million square meters of land. Cash inflows from the disposal of real estate totaledEUR 0.1 billion. Deutsche Telekom reduced leased floor space by another 106,000 square meters byimproving the utilisation of floor space and corporate sites. Overall, leasing and facility managementcosts in 2010 remained at the prior-year level. Deutsche Telekom's fleet management company,DeTeFleetServices GmbH, provides fleet management and mobility services, including vehiclesprovided to Deutsche Telekom's Group companies and affiliates within Germany. DeTeFleetServicesalso generates revenues from third parties through its sale of used fleet vehicles and, to a limitedextent, through fleet management services to third parties. The majority of third-party customers areDeutsche Telekom's former affiliates that were sold.Development of Operations2011 2010 Change Change(millions of €) (millions of €) (millions of €) (%)Total revenue 2,144 2,166 (22) (1.0)Profit (loss) from operations 1,160 (2,479) 3,639 n.m.Depreciation, amortisation andimpairment losses (796) (840) 44 5.2EBITDA 1,956 (1,639) 3,595 n.m.Special factors affectingEBITDA 1 2,698 (769) 3,467 n.m.EBITDA (adjusted for specialfactors) (742) (870) 128 14.7Cash capex (493) (406) (87) (21.4)Average number ofemployees 21,494 22,312 (818) (3.7)100