Prospectus-Final (clean) - Malta Financial Services Authority

Civil ServantsIn November 2004, Germany adopted a law abolishing the requirement for Deutsche Telekom, andother private corporations, to make certain special payments to civil servants. This law wassubsequently challenged in various courts and in December 2008 the Federal Administrative Court(Bundesverwaltungsgericht) decided to refer the case to the Federal Constitutional Court(Bundesverfassungsgericht) for a final decision on its legality. In its ruling dated 17 January 2012, theFederal Constitutional Court found that § 10 (1) of the Act on the Legal Provisions for the FormerDeutsche Bundespost Staff (PostPersRG) does not violate Germany's Basic Law. The abolition of theyear-end bonus intended by the provision does not breach the principle of equal pay laid down inArticle 3 (1) of the Basic Law in conjunction with Article 33 (5) of the Basic Law.With the entry into force of the reform of civil service law (Dienstrechtsneuordnungsgesetz) on11 February 2009, the legislature integrated the amounts that previously represented the year-endbonus paid annually in accordance with the German Federal Act on Bonus Payments(Bundessonderzahlungsgesetz) into the base monthly salary for all federal civil servants. Theentitlement of civil servants employed by the Deutsche Bundespost successor companies to the yearendbonus expired pursuant to the German First Act to Amend the Act on the Legal Provisions for theFormer Deutsche Bundespost Staff (Erstes Gesetz zur Änderung des Postpersonalrechtsgesetzes)dated 9 November 2004. Accordingly, the year-end bonus was not integrated into the base monthlysalary.Numerous civil servants have filed objections to these pay tables reduced by the year-end bonusamount and approximately 300 litigation cases are already pending. In a ruling on 15 December 2009,the Stuttgart Administrative Court decided in two court proceedings to present the question of whether§ 78 of the German Federal Civil Service Remuneration Act (Bundesbesoldungsgesetz) isconstitutional to the Federal Constitutional Court (Bundesverfassungsgericht) for decision.In order to avoid unnecessary administrative expense arising from objections and any legal actiontaken, Deutsche Telekom has concluded an agreement with the unions whereby Deutsche TelekomAG will pay the difference for remuneration of all federal civil servants (including those who have notobjected) retroactively if the Federal Constitutional Court rules that the pay tables applicable to theDeutsche Bundespost successor companies are unconstitutional. Consequently, in order to avoidmore objections and legal action, Deutsche Telekom AG has decided not to plead the statute oflimitations.Depending on the outcome, a supplemental payment may have to be made for the period beginningJuly 2009.OtherIn May 2009, Lannet Communications SA filed a lawsuit claiming compensation for damages ofEUR 176 million arising from the allegedly unlawful termination of services (mainly interconnectionservices, unbundling, and leasing of dedicated lines) by OTE. The hearing was set by the competentcourt for 17 February 2011, but was postponed and rescheduled for 30 May 2013.TREND INFORMATION AND SIGNIFICANT CHANGE IN THE FINANCIAL OR TRADINGPOSITIONThere has been no significant change in the financial or trading position of the Company and nomaterial adverse change in the prospects of the Company since the publication of its last auditedconsolidated financial statements as of 31 December 2011.ADDITIONAL INFORMATIONDeutsche Telekom is a stock corporation organised under the laws of the Federal Republic ofGermany. Deutsche Telekom AG, Bonn, is the parent company of Deutsche Telekom's group. Itsordinary shares are traded on the Frankfurt Stock Exchange as well as on other German stockexchanges. Information on the capital stock in accordance with § 289(4) No. 1 of the GermanCommercial Code (Handelsgesetzbuch) can be found in Note 15 to Deutsche Telekom's consolidatedfinancial statements as of and for the year ended 31 December 2011, incorporated by reference intothis Prospectus.119