Prospectus-Final (clean) - Malta Financial Services Authority

products and technologies, these investments were primarily measures to enable the provision ofadditional capacities and improve quality in existing products and technologies.Investments accounted for using the equity method decreased mainly due to a dividend of EUR 0.5billion received from Deutsche Telekom's Everything Everywhere joint venture. This amount waspartially offset by exchange rate effects attributable to the pound sterling of EUR 0.2 billion.The increase in other non-current assets of EUR 0.8 billion was mainly attributable to the right to thetransfer of spectrum licenses from AT&T worth EUR 0.9 billion. The license package is part of thecompensation from AT&T related to the termination of the sale of T-Mobile USA.In 2011, current liabilities decreased by EUR 2.1 billion and non-current liabilities by EUR 0.1 billion.Deutsche Telekom's financial liabilities decreased by EUR 2.2 billion compared with 2010. Currentfinancial liabilities decreased by EUR 1.5 billion and non-current financial liabilities by EUR 0.8 billion.The 4.7% decline in trade and other payables resulted in part from a decrease in investmentscompared with 2010.Provisions (current and non-current) decreased by EUR 0.2 billion, mainly due to lower provisions forpensions.Other liabilities (current and non-current) increased by EUR 0.6 billion. This is mainly attributable to anincrease in deferred tax liabilities at T-Mobile USA (EUR 0.9 billion) and higher liabilities for civilservant early retirement arrangements (EUR 0.2 billion). This increase was partially offset bydecreases in liabilities for voluntary redundancy and severance payments (EUR 0.2 billion), VATliabilities (EUR 0.1 billion), and deferred income (EUR 0.1 billion).Shareholders' equity decreased by EUR 3.1 billion to EUR 39.9 billion, primarily due to dividendpayments totaling EUR 3.5 billion and the negative fair value measurement of hedging instruments ofEUR 0.5 billion. By contrast, the profit of EUR 0.7 billion and actuarial gains of EUR 0.2 billionrecognised directly in equity had a positive effect.2010/2009Total assets remained almost constant compared with the end of 2009. Current assets decreased byEUR 7.8 billion, while non-current assets increased by the same amount. Current liabilities increasedby EUR 1.7 billion, while non-current liabilities decreased by EUR 2.7 billion.Cash and cash equivalents decreased by EUR 2.2 billion compared with 31 December 2009. Pleaserefer to the consolidated statement of cash flows and selected notes to the consolidated statement ofcash flows in Deutsche Telekom's consolidated financial statements as of and for the year ended31 December 2010, incorporated by reference into this Prospectus for more information on thischange.The net carrying amounts of the non-current assets and disposal groups held for sale and the liabilitiesdirectly associated with non-current assets and disposal groups held for sale decreased by EUR 5.1billion. Following the contribution of T-Mobile UK into a joint venture called Everything Everywhere asof 1 April 2010, the assets and liabilities of T-Mobile UK, which were reported as of 31 December 2009as held for sale, were deconsolidated and Deutsche Telekom's 50% holding in the joint venture wasreported as investments accounted for using the equity method. For further details, please refer to thenotes to Deutsche Telekom's consolidated financial statements as of and for the year ended31 December 2010, incorporated by reference into this Prospectus.Other current assets increased by EUR 0.8 billion. Inventories, recoverable income taxes and otherassets increased by EUR 0.4 billion, while other financial assets increased EUR 0.4 billion comparedwith 31 December 2009. In the 2010 financial year, Deutsche Telekom and France Télécom S.A.provided financing to the Everything Everywhere joint venture in the form of a bond purchased by thetwo shareholders in equal shares (EUR 0.8 billion each). The measurement of current derivativefinancial assets, by contrast, resulted in a decrease of EUR 0.2 billion.The EUR 0.9 billion increase in intangible assets and property, plant and equipment was mainly due toadditions of EUR 10.8 billion (primarily the result of EUR 2.6 billion in technical equipment andmachinery, EUR 1.3 billion as a result of the acquisition of spectrum, and advance payments onproperty, plant and equipment of EUR 4.0 billion), exchange rate effects of EUR 2.4 billion and theaddition of EUR 0.2 billion in goodwill from the acquisition of STRATO. This was offset in part by75