Statement by the Chairman of the Board of Management.

Obermann

René Obermann, Chairman of the Board of Management, Bonn, Germany.

Dear Readers,

Deutsche Telekom recognizes its responsibility for the environment and society. That is why we have been reporting on our corporate responsibility activities for years now in a comprehensive, transparent format. We have been doing this voluntarily and not as the result of legal reporting requirements, such as the legislation currently being prepared by the EU.

As this report impressively illustrates, we assume responsibility in many areas. I would like to discuss two of these areas in more detail because of their considerable importance for society and for us as a company: climate protection and access to high-speed networks.

Information and communications technology (ICT) is not necessarily the first thing that comes to mind when you think about climate protection. However, digital life and work contribute significantly to creating a low-carbon society. The SMARTer2020 study, which was presented in Doha in 2012 and in which Telekom played a key role, shows that ICT has the potential to reduce CO2 emissions worldwide by 16.5 percent. That is around ten times the total amount of greenhouse gas emissions in Germany.

We develop innovative applications and technologies to tap this potential, helping our customers reduce their carbon footprint. Video conferencing, to name just one small example, can replace many of our customers' business trips. Smart energy management helps our customers reduce their electricity consumption.

We are pursuing our own ambitious climate protection goals as well. We are switching our networks over to the more energy-efficient Internet Protocol, initiating a generational shift in mobile communications technology and improving the energy efficiency of our data centers. We are also pointing the way when it comes to mobility with our company fleet. The average CO2 emissions produced by all new Telekom cars in Germany have been reduced from 125 g/km in 2011 to 120 g/km. That means that we have already achieved the levels that the European Union has set for 2015 as part of its climate protection goals.

Our involvement in climate protection is not an isolated effort but rather a central component of a comprehensive strategy. With this strategy, we resolutely put the principles of the United Nations' Global Compact  into practice. We made an official commitment to these principles in 2000, the year the Global Compact  was introduced. Our efforts are focused on those areas where we feel we can contribute the most to the sustainable development of our society. These include climate protection as well as our action areas "Connected life and work " and "Connecting the unconnected."

To achieve progress in these areas we need to provide high-speed network access to as many people as possible with innovative, energy-efficient technologies for more sustainable products and services. To do this, we continue to increase our investment in the expansion of state-of-the-art broadband networks, even when the market trend points the other way. Our investment over the next three years will total at almost EUR 30 billion.

With our new vision "Deutsche Telekom—My first choice for connected life and work," we plan to put customer experience in the limelight even more than before. Not only do we want to provide our customers with transparent information, we also want to engage in dialog with them. We listen. And not only when talking about new devices and technologies but also, and more importantly, when it comes to issues that affect our communities.

But find out for yourself. Form your own opinions about our efforts to promote climate protection, sustainable ways of living and working, online safety and social cohesion.

I hope you will find this report both informative and inspiring.

Sincerely,

René Obermann