Prospectus-Final (clean) - Malta Financial Services Authority

345Includes expense relating to a contribution required by the Greek Ministry of Labor and Social Affairs (the "Ministry"). In thefirst quarter of 2010, the Ministry issued a Ministerial Decision and informed OTE that it may, subject to an audit, be requiredto make additional payments to cover a deficit in the public pension fund. Upon receipt of a notification from the Ministry forpayment of EUR 130 million, a liability was recognised in Deutsche Telekom's financial statements as of 31 December 2010.Primarily consisting of expenses related to the conclusion of the Magyar Telekom investigation and consulting expensesrelated to personnel restructuring programs in Romania.Includes break-up fee received from AT&T (EUR 2.3 billion), spectrum received from AT&T (EUR 0.9 billion) and loss relatedto cash flow hedge entered into in connection with the transaction (EUR 0.2 billion).Adjusted EBITDAContribution of the Operating Segments to Adjusted Group EBITDA2011Proportionof adjustedGroupEBITDA 2010Proportionof adjustedGroupEBITDA Change Change(millionsof €) (%)(millionsof €) (%)(millionsof €) (%)EBITDA (adjusted forspecial factors) in theGroup 18,685 100.0 19,473 100.0 (788) (4.0)Germany 9,599 51.4 9,618 49.4 (19) (0.2)Europe 5,241 28.0 5,748 29.5 (507) (8.8)United States 3,831 20.5 4,156 21.3 (325) (7.8)Systems Solutions 872 4.7 948 4.9 (76) (8.0)Group Headquarters &Shared Services (742) (4.0) (870) (4.5) 128 14.7Reconciliation (116) (0.6) (127) (0.6) 11 8.7In 2011, the decline in adjusted EBITDA resulted primarily from the decline in adjusted EBITDAgenerated by Deutsche Telekom's operations and, to a lesser extent, negative exchange rate effectsand the deconsolidation of T-Mobile UK. Deutsche Telekom's Germany operating segment generatedadjusted EBITDA in 2011 only slightly lower than in 2010, despite the decline in revenue. In addition,various technology and sales initiatives and the improvement of support processes further reducedoperating costs, while Deutsche Telekom lowered its cost base by discontinuing the sale of prepaidmobile cards of its competitors. The decline in adjusted EBITDA at Deutsche Telekom's Europeoperating segment resulted primarily from the decline in revenue and, to a lesser extent, thedeconsolidation of T-Mobile UK and the real estate tax introduced by the Greek government in 2011.Exchange rate effects, primarily attributable to the Polish zloty and the Croatian kuna, had a slightlynegative effect. By reducing overhead costs, mainly in Greece and Hungary, Deutsche Telekompartially offsets the decline. Adjusted EBITDA at Deutsche Telekom's United States operatingsegment declined primarily due to negative exchange rate effects. In local currency, the United Statesoperating segment reported a 3.1% decrease in adjusted EBITDA, primarily due to the decline inrevenues as well as an increase in operating expenses related to the build-out of the 4G-HSPA plusnetwork and higher marketing expenses. Lower volume-driven handset and commission costs partiallyoffset the decline in adjusted EBITDA. In 2011, adjusted EBITDA in Deutsche Telekom's SystemsSolutions operating segment declined despite an increase in revenue. This decline is primarily due toincreased contract-related expenses, such as for the successful migration of customer infrastructuresto T-Systems' operational business, start-up expenses for new contracts, and the development ofDeutsche Telekom's focus areas, such as intelligent networks, energy, healthcare and connectedvehicles. In addition, adjusted EBITDA was negatively affected by measures to improvecompetitiveness. Adjusted EBITDA at Group Headquarters & Shared Services improved in 2011,mainly due to earnings in connection with the procurement joint venture BUYIN and lower personnelcosts at Vivento.71