Governance

Deutsche Telekom comprises a number of major subsidiaries operating in different countries respectively regions. Several of them are listed stock corporations in their own right and publish as such comprehensive information on their respective sub-group, including inter alia their subsidiaries, activities, employees, revenues, profits/losses and taxes. In order to access such information, please find the following references to the sub-group reportings for 2020 & 2021:

1. T-Mobile US
   a) T-Mobile US - Annual Report 2020 
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed US-subsidiary, see pages 28, 29, 35, 38, 47-49, 57-58, 77-78, 113-115 etc.
   b) T-Mobile US - Annual Report 2021
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed US-subsidiary, see pages  33, 36, 72, 45-47, 53, 71, 103-105 etc.
   c) T-Mobile US - Annual Report 2022
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/ losses and taxes of publicly-listed US-subsidiary, see pages 32, 34, 42-44, 49, 68-69, 101-103

2. OTE
   a) OTE - Annual Report 2020
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Greece-subsidiary, see pages 97-98, 102-105, 114 etc.
   b) OTE - Annual Report 2021
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Greece-subsidiary, see pages 108-109, 113-116, 125 etc.
   c) OTE – Annual Report 2022 to be published soon; check OTE Annual Report Website
   

3. MAGYAR
   a) MAGYAR Telekom - consolidated annual report 2020
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Hungary-subsidiary, see pages 15, 17, 21, 57-60, 74, 88 etc.
   b) MAGYAR Telekom - consolidated annual report 2021
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Hungary-subsidiary, see pages 6-10, 14, 52-56, 69, 82 etc.
   c) MAGYAR Telekom - consolidated annual report 2022
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Hungary-subsidiary, see pages 7-11, 15, 20, 60-63, 205-207 etc.

4. Hrvatski Telekom
   a) Hrvatski Telekom_Croatia_Annual Report 2020
   Comment Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Croatia-subsidiary, see pages 44-45, 52-58, 76-77, 92-97,112-113, 122-123 etc.
   b) Hrvatski Telekom_Croatia_Annual Report 2021
   Comment Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Croatia-subsidiary, see pages 46-47, 54-60, 76-77, 92-97,112-113, 122-123 etc.
   c) Hrvatski Telekom_Croatia_Annual Report 2022
   Comment Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of publicly-listed Croatia-subsidiary, see pages 42-43, 47-52, 64-67, 78-83, 100, 110-111 etc.

Furthermore, there are also several other unlisted subsidiaries of Deutsche Telekom that publish comprehensive relevant information. In order to access such information, please find the following references to their reportings for 2020, 2021 & 2022:

1. T-Mobile Czech
   a) T-Mobile Czech_Annual Report 2020
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of Czech Republic Holding-subsidiary, see pages 12-13, 14-17, 73-74, 91-92, 96, 104-105, 107 etc.
   b) T-Mobile Czech_Annual Report 2021
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of Czech Republic Holding-subsidiary, see pages 14-15, 18-19, 78, 90-91, 108, 134 etc.
   c) T-Mobile Czech annual report for 2022 to be published soon; check T-Mobile Czech-website T-Mobile CZ Website

2. Slovak Telekom
   a) Slovak Telekom Annual Report 2020
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of Slovak Telekom Group, see pages 13-16, 17, 32-34, 36, 59-60 etc.
   b) Slovak Telekom Annual Report 2021
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of Slovak Telekom Group, see pages 14-17, 18, 32-24, 36, 61-62 etc.
   c) Slovak Telekom Annual Report 2022
   Comprehensive reporting of subsidiaries, activities, employees, revenues, profits/losses and taxes of Slovak Telekom Group, see pages 14-18, 36-38, 55, 67-68 etc.

 Additional information on each tax jurisdiction in which Deutsche Telekom operates, including names of all resident entities, primary activities, number of employees, revenue, profit (loss) before tax, income tax accrued (current year) and income tax paid are published as well at: Deutsche Telekom Country-by-Country Reporting CbC 2021 and Country-by-Country Reporting CbC 2022

The world is getting increasingly complex and we are confronted with new challenges and regulations every day. This makes it more important than ever to offer reliable guidance to all employees, to enable them to act confidently and ethically in different situations.

We offer a mix of eLearnings, classroom training (online trainings, WebEx) and innovative awareness formats depending on responsibility and compliance risk exposure of the target groups.

Our eLearning offerings for compliance are well-established. Group-wide, these eLearnings also include value-based, cultural, and integrity-related aspects – such as our eLearning Code of Conduct, Basic ethical concepts in day-to-day business and Compliance Basics. eLearnings are supplemented by classroom trainings for board of management, board members, top management and other staff selected on a risk-based approach, for example procurement and sales staff. In 2022 we held in-person training with Board of Management members and top management, in which we processed and discussed the best conduct in typical compliance dilemma situations based on case examples.

Our ICARE check, a self-test with five simple questions, supports our employees in making the right, responsible decisions in difficult situations.

The Supplier Code of Conduct requires the supplier to ensure compliance with applicable laws, regulatory provisions, and contractual obligations by appropriate means for the effective implementation and maintaining of a compliance framework. This means the obligation by the supplier to implement a compliance management system appropriate for its risk exposure.

Deutsche Telekom AG communicates its values and ethical standards within its Code of Conduct.

Additionally, it has several policies to further clarify the broad umbrella of values described in the Code of Conduct. A list of some od these Compliance policies can be found on the Deutsche Telekom AG Website.

One of these policies is the “Group Policy on Avoiding Corruption and other conflicts of interest”. Which gives employees guidance on avoiding corruption and other conflicts of interest. This includes a prohibition of granting and receiving benefits in chapter 5.1:

“The acceptance and granting of benefits in connection with Deutsche Telekom’s business activities are subject to substantial restrictions in light of the applicable corruption-related statutory offenses. This affects not only the acceptance and granting of benefits in the public sector, but also in private-sector business transactions, and it applies to a great extent to international cases as well.”

An overview of the contents can be seen in the following:

Deutsche Telekom adheres to highest ethical standards as reflected in Deutsche Telekom’s Code of Conduct. This means in particular DT complies with all applicable law and regulation and takes appropriate measures to ensure observation and effective implementation of compliance processes. DT’s Board of Management is fully committed to these ethical standards and expects the same from all employees throughout the group. 

The compliance with ethical standards is one of the components assessed regularly:

Deutsche Telekom conducts a regular group wide Compliance Risk Assessment to identify, and evaluate compliance risks and derive risk-oriented measures to prevent breaches of laws and regulations. In 2022, we added human-rights-oriented and environmentally oriented risk assessment to our annual Compliance Risk Assessment (CRA).

Network reliability is essential for telecommunications services to ensure a secure network and thus the best customer experience. A stable network without failures is the basis for this. Deutsche Telekom AG measures various factors in order to constantly monitor, control and optimize the reliability of its networks. We focus on every aspect that can have a direct impact on our customers. The following parameters are determined annually for Deutsche Telekom's entire network in Europe:

• “Average network interruption frequency” (Total number of customer interruptions/total number of customers served)
• “Average network interruption duration” (Total duration of customer interruption/total number of customers served).

These parameters are calculated for all technologies and all Deutsche Telekom networks in Europe. In 2021, the average network interruption frequency was 0.16 and the average network interruption duration was 120.99.

The analogue transmission of phone-calls through PSTN-Technology is past tense. We have migrated all lines - in Germany as well as in European NatCos - to IP-Technology and with that created the basis for fast internet-connections and more complex applications.

Together with satellite company Inmarsat, Deutsche Telekom is offering the fastest inflight broadband service for European travelers.

The European Aviation Network (EAN) has been developed by Inmarsat and Deutsche Telekom in partnership with leading European companies such as Thales, Nokia, Airbus, and Cobham. It marks a paradigm shift in the airline passenger experience, with incomparable speeds, uninterrupted coverage and significantly lower latency than any other inflight Wi-Fi network in the continent.

The award-winning connectivity solution has been available to over 85 million passengers to date, travelling on more than 650.000 flights throughout Europe, covering key destinations such as London, Madrid, Barcelona, Geneva and Rome. EAN has now been activated in 275 aircraft and is currently available with British Airways, Iberia, Vueling and Aegean Airlines.

Since the the Computerhilfe Plus service launch in 2016, the demand for support in matters related to digital security has continued to grow. That’s why we introduced the Digital Schutzpaket (Digital Protection Package) in 2018 and added the Digital Schutzpaket Business (Business Digital Protection Package) to this product at the end of 2019. The Digital Protection Package combines all relevant security services in one product and offers a central point of contact for all topics related to home networks and Wi-Fi, internet, and social media. A service number provides access to Deutsche Telekom experts for support on protecting the home network from external attacks, or help on the secure use of the internet, social networks, and passwords. In the event of data loss, we look after recovering files where possible. Other service components include financial protection from fraudulent use of bank details, fraud in private online trading, and protection and effective countermeasures against cyberbullying or insults on the internet. For business customers, reputation protection is also included, which supports the deletion of unstable negative ratings and provides tips on maintaining online reputation. ID-Alarm helps customers protect their digital identity and alerts them when stolen login data is found.

With our global data privacy organization, we are constantly working to provide a transparent and high level of data privacy in all our companies. As far as legally possible, the companies of the Deutsche Telekom Group have also committed themselves to the Binding Corporate Rules Privacy (BCRP), which are intended to ensure a uniformly high level of data privacy for our products and services. Violations of behavioral requirements, legal provisions, internal guidelines (such as the Binding Corporate Rules Privacy BCRP) and regulations can have serious consequences not only for individuals personally, but also for Deutsche Telekom. Therefore, on the basis of the Deutsche Telekom Code of Conduct, reproachable deliberate misconduct will not be tolerated. Deutsche Telekom sanctions such misconduct and violations consistently and without exception within the framework of the legal provisions, without taking into account the rank and position of the acting and affected person.

Machines and products are constantly becoming smarter. The technologies that make these developments possible are bundled under the term Internet of Things, or IoT.
IoT can help ideally coordinate the processes of various devices, vehicles, and entire industrial facilities. This increases industrial productivity and ensures efficient logistics, thus helping reduce energy consumption and conserve resources.
We also support the German federal government’s Industry 4.0 initiative through our involvement in IoT. The initiative’s objective is to maintain Germany’s competitive edge in the technology sector.

T-Systems has been developing and operating Daimler’s Connected Car platform (Daimler vehicle backend) worldwide since 2013. The platform is the technical basis for the Live Traffic service, which provides drivers with real-time traffic information, Live Traffic prevents about 30 percent of traffic jams per vehicle. This means the approximately 24 million vehicles equipped with Live Traffic consumed about 26 million liters less fuel. This translates into CO2 savings of around 65,000 metric tons.

Project goal:

SHOW aims to support the deployment of shared, connected     and electrified automation in urban transport, to advance sustainable urban mobility.

- Demonstrations in 20 cities across Europe

- Integration of automated fleets in Public Transport

- Including 69 partners from 13 EU-countries

- International cooperation with organizations from the US, South Korea, Australia and China

Benefits:

- Reduction of 20% energy consumption and 10% emissions

 - Reduction of overall number of private vehicles through intelligent combination of smart Public Transport solutions

 - Improved traffic flow

- Establish new business models and improve virtual validation

DT does not tolerate any irregular behavior.

The case in SA is not new. We are dealing with it since 2017 and it has been the subject of several public reports in Germany and South Africa. Most recently in the German business weekly Wirtschaftswoche (2021) or in the “Welt” (2022).

The case has been consistently and thoroughly investigated by T-Systems South Africa. Two years ago, we divested ourselves of the South African business.

A state commission has examined the events in great detail. So far, it has not made any recommendation to investigate or prosecute the TSSA itself or individual TSSA employees.

As a matter of principle, we do not comment on ongoing proceedings; this also applies to those of the Frankfurt public prosecutor's office.

The Consumer IoT division has developed the open, cross-manufacturer smart home platform and the MagentaZuhause App. This gives customers the opportunity to combine devices from different companies easily and individually and to control them via app.

During the reporting period, the MagentaZuhause App was launched on the market. The app makes living together easier thanks to many useful functions and completely new options for home network management as well as extensive SmartHome functions.

With the MagentaZuhause App, our customers stay even more connected to their home and loved ones. Even when they are on the move. And the app is for the whole family - the whole home. To-do and shopping lists, reminder functions support our customers in their everyday organisation. Checking the home network, activating and sharing the guest Wi-Fi and optimising the Wi-Fi are just some of the numerous options for home network management with the MagentaZuhause App. 

Wi-Fi or IP devices can be connected directly to the app and no longer require a SmartHome control hub. This makes it easier for our customers to get started in the connected home. In addition, the app can also be used to control MagentaTV content - also by voice.

During the reporting period, we were able to further increase the number of devices that are compatible with the Smart Home platform. Customers can already choose from several hundred different Smart Home devices: With a Speedport Smart 4, customers also have the option of using it as a Smart Home hub. In addition, the MagentaZuhause App now supports Wi-Fi radiator thermostats from the new partner Eurotronic and smart plugs with consumption measurement from WiZ as well as other devices from SONOS, D-Link and Ledvance.

At the Red Dot Award: Brands & Communication Design 2022, the MagentaZuhause app was awarded one of the coveted Red Dot in the category "Apps - Smart Homes".

Twice a year, the experts of the international UX Design Awards honour excellent design that contributes to the creation of a more positive living environment. The MagentaZuhause App was nominated by the jury in the "Product" category.

The World Smart Home Awards 2022 have been awarded - and four of our Smart Home products have been honoured: SmartHome Home Base, SmartHome door/window contact optical, SmartHome Wi-Fi adapter plug (indoor) and SmartHome Wi-Fi LED lamp E27 coloured.

The MagentaZuhause app offers a high level of protection - as attested by the independent institute for IT security, AV-TEST GmbH. The security test 01/2022 concludes for the first time that the app prevents manipulation by external parties and that communication is secure. The next test of the platform by AV-TEST GmbH is planned for the beginning of 2023.

Trade associations are the cornerstone of our public relations activities. Deutsche Telekom does not make any donations to political organizations, political parties, or elected officials on principle.

* Total amount according to the individual amounts reported in the lobby/transparency registers of Germany (federal level, Baden-Württemberg, Bavaria / each since 2021), EU (Brussels) and USA (Washington / since 2020) - see also https://www.cr-report.telekom.com/crwissen/transparency-disclosures-lobbying-expenditures.
** DT does not make any donations to political organizations, political parties, or elected officials on principle – see also https://www.telekom.com/en/company/topic-specials/special-public-and-regulatory-affairs/detail/public-affairs-and-transparency-611136.
*** Trade associations are the cornerstone of the public relations activities by DT. The numbers listed above mean "LESS THAN 5 Mio. EUR per year" (value may vary slightly year-on-year; this is the maximum of an approximate value) – see also https://www.cr-report.telekom.com/2021/management-facts/strategy/political-advocacy#atn-19548-19551.