2 CONTENTS This PDF document contains all information on accountability (“Management & facts”) from Deutsche Telekom’s 2019 CR Report. The themed pages “Green future”, “Digital life”, “New ways of working”, and “Good stewardship” may be downloaded individually using the “Print this page” function or as one document using the “Info basket” function. 4 4 5 13 16 18 19 22 25 27 28 30 30 33 39 42 44 45 47 51 52 FOREWORD IMPACT MEASUREMENT STRATEGY CR STRATEGY & MANAGEMENT MATERIALITY SUSTAINABLE DEVELOPMENT GOALS STAKEHOLDER MANAGEMENT COMPLIANCE POLITICAL ADVOCACY SUSTAINABILITY STANDARDS AWARDS ECONOMY SUSTAINABLE FINANCE SUPPLIERS SUSTAINABLE AND INNOVATIVE PRODUCTS NETWORK EXPANSION CUSTOMER SATISFACTION CONSUMER PROTECTION DATA PROTECTION AND DATA SECURITY FINANCIAL PERFORMANCE INDICATORS FINANCIAL PERSONNEL INDICATORS

STRATEGY FOREWORD 4 FOREWORD Dear Readers, Since the 1990s, we have been taking on responsibility for the major issues of our age – climate change, social justice, and digital participa- tion are key action areas for Deutsche Telekom. However, the chal- lenges are growing exponentially and range from threats to our democ- racy from media phenomena such as fake news and filter bubbles all the way to resurgent populism in sections of our society. That’s why I firmly believe we need more than just a focus on sustainability – we need a sustainable business model. In 2019, we therefore modified our Group strategy to explicitly make “acting responsibly” a core element. This is something we’re working toward, step by step. For example, we have set ourselves new, ambitious climate protection targets – 90 percent lower emissions by 2030 and electricity generated solely from renewables from 2021. Furthermore, these are targets that apply to our entire Group. However, 80 percent of our CO2 footprint comes from the manufacture and use of our products. We are commit- ted to reducing these emissions by 25 percent per customer by 2030. The Science Based Targets initiative (SBTi) confirmed us as the third DAX company whose climate protection targets are helping achieve compliance with the Paris Climate Agreement. We have also examined our value chain to identify other areas where we could help improve cli- mate protection and resource conservation. Our “We care for our planet” Group program combines selected initiatives in which we’re working as a Group toward gradually becoming “greener”. Examples include our sustainable smartphone recycling initiative, reducing pack- aging, and switching our service fleet to alternative drives. Our media literacy initiatives promote safe and proficient use of digital media. After all, digitalization also has its dark side. How do we identify extremist propaganda on the net, for instance? In 2019, these initiatives ran under the banner of “Digital democracy”. Our aim is to connect everyone to present and future digital opportunities, whether in a pri- vate or social context. That’s why our mission is “We won’t stop until everyone is connected.” Digitalization is also having a huge impact on the world of work – and Deutsche Telekom is no exception. We are keen to have all our employ- ees on board as we navigate the increasingly complex digitalized econ- omy. To that end, we have made learning an integral part of our every- day work. In 2019, in conjunction with the Group Works Council, we set out guidelines for shaping the digital world of work with our “Manifesto of Agile Work”. Timotheus Höttges, Chairman of the Board of Management, Bonn, Germany We are also committed to responsible digitalization. We are the first company that has introduced guiding principles for the ethical use of artificial intelligence (AI). In 2019, among other activities, we carried out training and workshops on implementing the principles, integrated them into contract-relevant provisions for our suppliers, developed an internal test seal for ethical AI products, and held a conference on digital ethics. We want to be measured by our actions and not by our words! We also report extensively and transparently on our diverse sustainability activities in this year’s Sustainability Report. We remain committed to the principles of the United Nations Global Compact and the German Sustainability Code. Both of these frame- works, along with the UN Sustainable Development Goals, guide us in what we do. I hope you find the report enjoyable reading! Tim Höttges

STRATEGY CR STRATEGY & MANAGEMENT 6 DEVELOPMENT OF OUR ESG KPIS We use this data primarily to calculate relevant indicators and our ESG KPIs, with which we measure and control our CR performance through- out the Group. Our CR controlling ensures that ESG data and KPIs are both recorded transparently in good time and can be reported in the “Facts & figures” section and interactive KPI tool of this CR report. We are continuously improving our system for performance indicators on the basis of internal and external requirements. For example, we extended our reporting on resource protection in 2019 so we can report on the many successes in our “We care for our planet” program and in the “Green Pioneers” employee community. OUR MANAGEMENT TOOLS – THE ESG KEY PERFORMANCE INDICATORS ESG KPIs (key performance indicators) are used as management tools for our CR involvement. Since they are highly relevant, we also report them in the combined non-financial statement of our annual report. The national companies also record CR data and thus assist in the col- lection of Group-wide ESG KPIs. These national companies represent 99 percent of the Group’s net revenue. For the purpose of integrated financial and sustainability reporting, the KPIs map all six types of capital (see diagram).

STRATEGY CR STRATEGY & MANAGEMENT 8 VALUES AND GUIDING PRINCIPLES Corporate responsibility (CR) is based on shared values. To solidify our value-based corporate culture, we convey the basic values of our company to all employees through binding Guiding Principles. We use various measures such as the annual “Guiding Principles Day” to remind employees of these values again and again, entrenching them in our everyday work. And the measures have been successful. According to our pulse survey in November 2019, 74 percent of our employees believe that the Guiding Principles are applied to our everyday work. Our Code of Conduct and the Code of Human Rights & Social Princi- ples are other tools we use to ensure that our Group and our partners demonstrate corporate responsibility in their conduct. Our compliance management system, which guarantees that our business activities are in compliance with laws and regulations, is also based on these docu- ments. They also entrench ethical standards and, in particular, human rights within the Group. CERTIFIED HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEM: ALMOST ALL WORKPLACES COVERED We want to make sustainability a component of all our business pro- cesses and of our employees’ everyday lives. Our integrated health, safety and environmental (HSE) management system assists with this at the Group level. The management system helps us to systematically plan, implement and improve our HSE processes. This promotes the health of our employees and has a positive effect on their performance. It is also beneficial when it comes to bidding on new projects, since an increas- ing number of potential customers now require their suppliers to pro- vide HSE certificates. Our Group-level HSE management system is covered by an umbrella certificate based on the international standards ISO 45001(formerly OHSAS 18001) for occupational health and safety and ISO 14001 for environmental management. For some units, it also covers international standard ISO 9001 for quality management. Some of the national companies are not covered by an umbrella certifi- cate because they have their own certifications which are, in part, even more comprehensive. This is the case in Greece, for example. This national company has an integrated management system, which in addition to the above-mentioned standards, also covers the interna- tional standards ISO 50001 for energy management and ISO 27001 for data security. Through our compliance with legal regulations, we already meet the essential requirements for ISO 45001 certification in Germany. 100 per- cent of our employees in Germany are employed at an ISO 14001- and ISO 45001-certified workplace. Internationally, 98 percent of employees are employed at an ISO 14001- and ISO 45001-certified workplace. Our goal was to cover all companies that have more than 50 employees by the end of 2018. We were not able to meet this target. However, we further expanded coverage in 2019: with certification of T-Systems Polska and T-Systems Schweiz according to ISO 45001 and 14001 and certification of T-Systems Iberia according to ISO 45001.

STRATEGY CR STRATEGY & MANAGEMENT CR PROGRAM 2019 BUSINESS 10 Objectives Target achievement Implementation Cover 70 percent of our procu- rement from carbon-intensive suppliers with the CDP Supply Chain Program by 2020 Review 80 percent of procurement volume by 2020 Have 75 percent of the top 200 suppliers CR-qualified by 2020 99 percent LTE coverage in Germany by 2020 99 percent LTE coverage in Europe by 2021 99 percent 5G coverage in Germany by 2025 CR labeling of products and services to increase transparency for customers Increase Group-wide customer retention (measured using TRI*M index) ƒ 63 percent coverage in 2019 ƒ CDP Supply Chain Program ƒ 81 percent coverage in 2019 ƒ Sustainable Procurement ESG KPI ƒ 87 percent coverage in 2019 ƒ CR-Qualified Top 200 Suppliers ESG KPI ƒ 98 percent coverage in 2019 ƒ Progress in network expansion ƒ 98 percent coverage in 2019 ƒ Progress in network expansion ƒ Deutsche Telekom’s 5G network available in eight ƒ 5G expansion German cities at the end of 2019 ƒ Introduction of the “we care” label ƒ “we care” label ƒ Slight decline – 68.5 in 2018; 67.3 in 2019 ƒ Measuring customer retention and endorsement Obtain relevant service awards ƒ Achieved, among other things, thanks to accolades ƒ Awards for our service associated with the TÜV quality seal, the title “Service- König” (King of Service) from the trade magazine Focus Money, and the top score in the CHIP online test Develop and implement a sustainable investment strategy for Deutsche Telekom’s capital investments Ensure inclusion in relevant sustainability indices ƒ Implemented ƒ Sustainable investment at Deutsche Telekom ƒ Inclusion in four additional indices in 2019 ƒ T-Shares in sustainability ratings and indices

STRATEGY CR STRATEGY & MANAGEMENT CR PROGRAM 2019 SOCIAL 12 Objectives Target achievement Implementation Increase the Media Literacy ESG KPI to 45 percent by 2020 Increase the proportion of women in top positions in middle and upper management to 30 percent Increase the Group-wide health rate to 95.9 percent by 2020 Reduce the accident rate in Germany ƒ December 31, 2019: 41 percent ƒ ESG KPIs “Beneficiaries” and “Media Literacy” ƒ December 31, 2019: 35 percent women Group-wide ƒ On Board of Management: 22.2 percent ƒ In middle and upper management: 26 percent ƒ On Supervisory Board (in Germany): 40 percent ƒ On Supervisory Boards (in Europe): 25 percent ƒ December 31, 2019: 94 percent ƒ Proportion of women on the Board of Management ƒ Proportion of women in middle and upper management ƒ Proportion of women on supervisory boards of Deutsche Telekom national companies ƒ Commitment to increasing the proportion of women ƒ Health rate ƒ Effectiveness of our health and safety measures ƒ 2019: Reduction to 6.8 accidents (resulting in more ƒ Effectiveness of our health and safety measures than three days of absence) per thousand employees (8.7 in 2018) Revise the Guiding Principles ƒ Implemented ƒ Our approach to employee relationships ƒ In 2019, over 60 percent of the training courses that could be booked via the Learning Management Sys- tem (LMS) were digital. (53 percent in 2018) ƒ Our approach to training and development ƒ Training courses offered by Telekom Training in Germany ƒ Two new modules on life in the city of the future and on ƒ Promoting media literacy and democratic competence ƒ Employee survey every two years ƒ Satisfaction and commitment indexes ƒ Human Rights Impact Assessments Boost digital further training Expand #DABEI-Geschichten.com (“#TAKEPART-stories.com”) Improve employee satisfaction digital democracy ƒ Commitment index in 2019: 4.0 (Commitment index in 2017: 4.1) Performance of Human Rights Impact Assessment (HRIA) and Employee Relations Review (ERR) ƒ Performance of HRIA at T-Systems India ƒ Performance of ERR at T-Mobile Polska, Deutsche Telekom field staff

STRATEGY MATERIALITY 14 Our document analysis also shows that the topics of water, waste, and the circular economy have fundamentally increased in relevance. In 2020, we will analyze whether and to which extent this affects the importance these topics hold for us. The document analysis shows that there had been either no changes or very limited changes to all the other topics. We identified the material topics for this year’s CR reporting based on these findings. We presented the results of the analysis in a materiality matrix in accordance with the requirements of the Global Reporting Ini- tiative (GRI). RESULTS OF THE MATERIALITY ANALYSIS Topics were rated as “very relevant,” “relevant,” “less relevant,” and “not relevant” in the materiality analysis. We translate their weighting results onto a 100-point scale. Here are the results of the analysis. The overall result The following illustration shows how all of the topics were rated by our stakeholders and from a corporate perspective on a scale of 0 to 100. Top topics for Deutschen Telekom's sustainable business development We consider all topics that achieved more than 70 points on average in the materiality process to be top topics. They are presented on a scale of 50 to 100 below.

STRATEGY IMPACT MEASUREMENT 16 IMPACT MEASUREMENT IMPACT MEASUREMENT AND MANAGEMENT We aim to continuously improve the positive social impact of our prod- ucts, solutions, and activities, and minimize their negative impacts. We have made our contributions to achieving the United Nations Sustaina- ble Development Goals (SDGs) transparent in our reporting since 2015. With the support of internal and external experts, we have also devel- oped an overarching approach we can use to measure the impact of our activities – our blueprint as it were. This is based on a six-tiered formula that enables us to identify and evaluate causal relationships. To ensure transparency and comparability of the results, we use exter- nal frameworks to describe the effects of our contributions. These include both the SDGs and the Universal Declaration of Human Rights. The first step when measuring impact is to examine the consequences that a project, product, or activity (such as switching from paper billing to online billing, for instance) has for material key topics on an ecologi- cal, social, and economic footing. We then use the resultant findings to assess the associated SDG impact from a global perspective and to support the internal management and communication of corresponding activities. IMPACT MEASUREMENT: BROADBAND EXPANSION We examined one of our core topics – broadband expansion. Broadband expansion has a positive impact on many aspects of society and helps to deliver the SDGs. ƒ Improved network coverage (SDGs 9 and 17) can create new jobs, as a growing number of new businesses are established, for instance (SDG 8). Average income and gross domestic product also increase as a result. ƒ Network expansion also lays the foundation for many other positive effects, such as improved and more equal access to digital services in the educational and health care field for example (SDGs 3, 4, and10). However, network expansion also has negative consequences: ƒ On an intermittent and one-off basis, the civil engineering works that have to be undertaken to expand infrastructure consume resources, generate emissions, and infringe on natural habitats. In 2018, we introduced impact measurement for various activities and products. In doing so, we ensured that the methods we use are trans- parent, are based on robust data and assumptions, and are effective for several years. Moreover, we have described the relevant starting point, or baseline, as accurately as possible so that the concrete impact on the SDGs can be evaluated reliably. The results are both qualitative and quantitative in nature and are presented in the following sections. ƒ The expansion of higher-performance network infrastructure can lead to increased energy demand. To mitigate these effects, we are expanding our network in an energy- efficient manner and increasingly using renewable energies (SDG 7), which means that, in the long term, the positive impacts will outweigh the negative consequences. IMPACT MEASUREMENT: ONLINE BILLING Gradually switching from paper billing to online billing is a good exam- ple of the sustainability potential inherent in digitalization. We applied our new approach to impact measurement in order to analyze the effects more closely for Deutsche Telekom. This involved assessing the entire impact chain for both paper and online billing. ƒ Our comparison shows that the negative environmental conse- quences of online billing are more than 50 percent lower than those associated with paper billing. Striking elements include a lower con- sumption of paper and ink and reduced logistics services (SDGs 3, 6, 7, 8, 9, 11, 12, 13, and 14). We have identified the potential negative consequences of this measure as a drop in sales for the timber and paper industries and logistics sec- tor. However, these consequences are less substantial than the positive effects.

STRATEGY SUSTAINABLE DEVELOPMENT GOALS 18 SUSTAINABLE DEVELOPMENT GOALS THE GLOBAL DIMENSION TO OUR COMMITMENT – SUSTAINABLE DEVELOPMENT GOALS (SDGS) Deutsche Telekom emphatically supports the UN Sustainable Develop- ment Goals (SDGs). We are already making a contribution with many of our products, solutions, and measures. We also examine how our business activities affect the SDGs as part of our impact assessment. Internally, we use the SDGs effectively in our communication with vari- ous units. They help us clarify how we influence society and the environ- ment and improve our level of awareness when it comes to managing the social impact of our products and solutions. Our transparent external reporting in relation to the SDGs has previ- ously earned special recognition from PwC, among others. In both this CR report and our annual report, we draw attention to our contributions to the SDGs. The relevant sections are marked with the corresponding SDG symbols. Furthermore, we also set out how our commitment to the SDGs benefits the development of Deutsche Telekom. OUR CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS Various studies have come to the conclusion that 103 of all 169 sub- goals associated with the SDGs can benefit from the use of ICT. Exam- ples include the study entitled “ICT-centric economic growth, innova- tion, and job creation” published in 2017 by the International Telecom- munication Union and the “SMARTer2030” study launched by the GeSI initiative in 2019. Our network infrastructure offers the technological foundation for diverse and innovative approaches to solving social and ecological challenges – and hence also for achieving many SDGs. That is why we believe we can make the biggest impact on SDG 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.” The following overview details our contribution to the SDGs and refers to specific examples from the current CR report. Our efforts to support the SDGs also have a positive impact on our com- pany. To highlight the various internal contributions throughout our value chain that help us support the SDGs, we have divided them into five sectors. Each sector has its own logo. These logos appear along- side the SDG symbol in both our annual report and the “Facts & figures” section of the CR report and thus clarify the correlation between the SDG contribution and the relevant internal contribution. Deutsche Telekom’s value contributions

STRATEGY STAKEHOLDER MANAGEMENT 20 Suppliers TOP-SUBJECTS: ƒ Privacy ƒ Cyber safety ƒ Mitigating climate change ƒ Talent acquisition, retention, development and staff reduction ƒ Data Security Stakeholder groups: ƒ Auditors and certification bodies ƒ Sub-suppliers ƒ Consultants ƒ First-tier suppliers Stakeholder groups: ƒ Humanitarian organizations and charities ƒ Business ethics groups ƒ Multi-thematic organizations ƒ Churches and their relief organizations as well as other religious and social groups ƒ Foundations ƒ Environmental protection organizations Media TOP-SUBJECTS: ƒ All top-subjects of the materiality analysis 2019 Stakeholder groups: ƒ CR and sustainability ƒ Players from politics and business ƒ Education ƒ Radio broadcasters, daily press, press agencies ƒ Online media and social networks ƒ Publishers ƒ Journalist associations/media groups ƒ ICT and communications Politics TOP-SUBJECTS: ƒ Privacy ƒ Cyber safety ƒ Socially relevant application of ICT products and services ƒ Transparency and reporting ƒ ICT and child safety Stakeholder groups: ƒ Players at national level ƒ Embassies and consulates ƒ Supervisory and regulatory authorities ƒ Communities and their representatives ƒ International organizations ƒ Players at EU level Employees, potential employees and their representatives TOP-SUBJECTS: ƒ Data Security ƒ Privacy ƒ Cyber safety ƒ ICT Solutions for a Low-Carbon Economy ƒ Employee involvement Stakeholder groups: ƒ Employees ƒ Managers ƒ Board of Management ƒ Applicants and prospective employees ƒ Trade unions and works councils ƒ Employees and students ƒ Endowed chairs ƒ Apprentices/trainees

STRATEGY COMPLIANCE 22 COMPLIANCE HOLISTIC COMPLIANCE MANAGEMENT SYSTEM We have clearly expressed our commitment to complying with ethical principles and current legal standards. This commitment has been incorporated in our Guiding Principles and Code of Conduct. We have put in place a compliance management system to anchor lawful and ethical conduct in all areas of the Group. The specific purpose of this system is to ensure compliance risks are successfully tackled and make sure rules and regulations are followed throughout the entire Group. Responsibility for the compliance management system lies with top management. There is also a management position for compliance in every company of Deutsche Telekom. The Group-wide design, develop- ment, and implementation of the compliance management system falls under the remit of the Chief Compliance Officer of Deutsche Telekom AG and the Group Compliance Management unit she runs. We also have dedicated compliance officers (COs) at each of our operating seg- ments and national companies. It is their job to ensure the compliance management system and our compliance goals are implemented on site. At Deutsche Telekom, compliance means following the rules and always doing the right thing. Within the meaning of our five Guiding Principles and Code of Conduct, integrity – which necessarily encom- passes compliance – forms the basis of all our business decisions and activities. It defines the behavior of all our employees when dealing with customers, employees and colleagues, investors, managers, and Deutsche Telekom’s general environment. We have derived the following objectives for our compliance work: ƒ Preventing compliance violations and unethical business decisions ƒ Integrating compliance into business processes at an early stage and on a lasting basis ƒ Minimizing liability risks for the company ƒ Ensuring Deutsche Telekom is viewed as a dependable partner by its customers ƒ Adopting a consistent approach to preventing, identifying, and responding to non-compliance ƒ Fostering a compliance culture and ethical conduct COMPLIANCE MANAGEMENT CERTIFICATIONS In 2018, we once again had our compliance management system certi- fied with a focus on anti-corruption measures. This is our way of ensur- ing that we can confront risks consistently and that we have established effective processes in the company. Since 2016 25 international companies have been were certified. The certification focused on processes in Procurement, Sales, HR, and Mergers & Acquisitions, on the one hand, and on events, donations, and sponsorships on the other. The potential danger of corruption is greatest in these areas. Auditors investigated the efficacy of the compli- ance management system and verified it without any reservations. We document details regarding audit content and corporate depart- ments that have undergone anti-corruption audits in our audit report. COMPLIANCE MANAGEMENT ENHANCED WITH RISK ASSESSMENT If we are going to be successful in preventing and countering legal infractions and regulatory breaches, then we need to adopt the correct approach to assessing compliance risks. That is why our compliance management system is centered around an annual compliance risk assessment. To help us carry this out, we have put in place a Group- wide compliance management process, allocated responsibilities, and defined assessment criteria. The individual steps in the compliance risk assessment, all of which are documented transparently, are as follows: ƒ The companies that will take part in the compliance risk assessment are selected using a model based around how developed and com- plete their compliance programs are. A total of 80 companies took part in 2019. This equates to a coverage of just under 97 percent in terms of headcount. Responsibility for conducting the compliance risk assessment lies with the respective national company. Our cen- tral compliance organization provides support and advice in these matters. ƒ The national companies’ managing boards are responsible for the results of the compliance risk assessment. Activities and responsi- bilities for the following year’s compliance program are developed on the basis of these results. The managing board then passes a formal resolution to approve the program. The compliance program measures are monitored closely. ƒ We use the Group risk map to assess risks that are particularly sig- nificant to our company. The risk map enables Deutsche Telekom’s companies, with their various business models, to conduct system- atic risk analyses. It currently covers 27 core risk categories, ranging from corruption and anti-trust law violations to contraventions of the Code of Human Rights & Social Principles. Each national company

STRATEGY COMPLIANCE 24 ƒ The Speak-Up Culture initiative: Employees are encouraged to openly address grievances in critical situations, just as managers should be open to hearing these grievances. To help with this, “Speak Up!” training courses are offered on an international scale, in which employees learn communication techniques for use in diffi- cult situations. By the end of 2019, approximately 3,000 employees had taken part in one of these courses in Germany alone. ƒ “Ethical Leadership” training courses help our managers reflect on their own ethical conduct. So far, around 400 managers have taken part in one of these courses. ƒ In 2019, we introduced an e-learning and self-reflection tool for managers and project managers that helps them foster a speak-up culture in their teams and enhance their own ethical leadership behavior. ƒ Employee surveys: in 2019 we carried out a follow-up survey on our compliance culture and a good 46,000 employees took part. THE RESULTS OF OUR EMPLOYEE STUDY ON THE CULTURE OF COMPLIANCE In 2019, as part of the Compliance-based Company Culture initiative, we conducted our second ever international employee survey on com- pliance. The aim was to reassess how our compliance culture had developed since the last survey was conducted in 2017. The European School of Management and Technology (ESMT Berlin) and Hertie School of Governance were our research partners for the first, extensive study. Some 46,000 Deutsche Telekom employees took part in the lat- est survey – more than participated in the first. The initiative is sup- ported by an expert committee created specifically for this purpose. The committee is comprised of Deutsche Telekom employees as well as representatives from non-governmental organizations, the business and scientific communities, and society. The results have improved compared to 2017. ƒ Some 98 percent of those surveyed said they are committed to the rules at Deutsche Telekom and are unwilling to conduct themselves in an unethical manner (97 percent in 2017). Accordingly, the vast majority stand by their own values and would not stray from them, even under pressure. ƒ A total of 88 percent indicated that their manager sets a good example for ethical conduct. ƒ Just under 90 percent said they are well informed by the company as regards appropriate conduct at work and that they feel well prepared to deal with ethically dubious situations. ƒ A clear majority of survey respondents stated that the company management team sets a good example for ethical conduct. ƒ Weaknesses were identified with regard to feedback culture. A number of employees said they did not feel comfortable expressing their opinion openly. The weaknesses identified were the subject of intensive discussion on the Board of Management and a set of measures was developed to address them. The aim of these measures is to further reinforce the val- ues-based compliance culture in the Group and carry forward the cur- rent, overwhelmingly positive trend. One of the measures was the intro- duction of the “Managing Dilemmas” virtual reality program. The aim behind this program is to make it easier for staff to identify critical situa- tions and adopt the correct approach in these scenarios. A “speak-up culture” is also being promoted with measures such as the launch of a new e-learning program. BREAKING DOWN BARRIERS – WORLDWIDE COOPERATION FOR COMPLIANCE Different legal practices and cultural values in the countries where Deutsche Telekom is active represent a significant challenge for compliance. The increasingly dynamic development of global markets and intensified international competition also influence our compliance strategy. In line with the Group’s international orientation, we discuss strategic issues with an international compliance advisory team twice a year. The team is a trend-setter of sorts for designing and implementing balanced compliance structures at Deutsche Telekom. We also promote Group- wide compliance cooperation through meetings of the representatives of all compliance organizations from our international subsidiaries. We are working with other parties in national and international organiza- tions and professional circles, which involves discussing compliance issues, among other things. We also actively contribute to the ongoing development of compliance, for example by giving specialist presenta- tions and releasing publications. COMMITMENT TO ANTI-CORRUPTION INITIATIVES Deutsche Telekom AG regularly contributes to national and interna- tional organizations that focus primarily on compliance issues. As a member of associations and organizations such as the Compliance & Integrity forum of ZfW (Center for Business Ethics) and BITKOM (Fed- eral Association for Information Technology, Telecommunications, and New Media), we make use of the opportunity to exchange ideas and experiences related to compliance. RESPONSIBLE USE OF ARTIFICIAL INTELLIGENCE (AI) In 2018, with Group Compliance Management taking the lead, we intro- duced guiding principles for the ethical use of artificial intelligence (AI). These principles clarify how we at Deutsche Telekom aim to use AI responsibly and develop our AI-based products and services in the future. We do not claim that these guidelines constitute universally applicable rules on the responsible use of AI. Instead, we aim to continuously develop these guidelines in partnership with our employees and external stakeholders, anchoring them in our company. In 2019, we carried out activities such as training and workshops on implementing the guidelines, held a conference on digital ethics, pro- vided employees with comprehensive information through a range of formats, integrated the AI guidelines into contract-relevant provisions for our suppliers, and developed an internal test seal for ethical AI products. AI applications that satisfy our high standards carry the seal.

STRATEGY POLITICAL ADVOCACY 26 OUR POSITION ON BROADBAND – INVESTMENT INCENTIVES ARE NEEDED Having a high-performance, reliable, and secure broadband infrastruc- ture is the basis of success for all business sectors and is a key factor in making a business location attractive. Deutsche Telekom has been making considerable contributions for years by investing heavily in the infrastructure for mobile internet and the fixed-line network, including with optical fiber. We show more commitment than any other company to providing full-area coverage, including in rural areas. Building on the best effort internet, we are developing an innovative network architecture – 5G networks – which can better and more flexi- bly meet the various transmission quality requirements of specific services. We thereby fulfill business and regulatory requirements and enable innovation in the services we offer on our networks. Content is not monitored, nor do we have any influence over user or provider content. When competing with other network operators, we will con- tinue to market services with guaranteed quality features exclusively on a non-discriminatory basis. In order to drive network expansion, network operators in Germany need investment incentives, legal and regulatory planning security, and technological freedom of action. That enables them to respond flexibly to the circumstances of enterprises and households and meet political, economic, and social requirements. This is the only way to fully harness the potential for cost-effective private network expansion using all avail- able technologies. When it comes to areas where cost-effective broad- band expansion is not possible, it is down to the public sector to ensure the gaps are plugged by providing technology and supplier-neutral funding programs and exercising sound judgment. Legal frameworks and regulatory practice need to actively support private-sector invest- ment in new fiber-optic networks and prevent unnecessary financial burdens and red tape for the network operators investing in networks. In view of the fact that the internet and telecommunications markets are converging rapidly and in light of the growing market power of a few global internet players, the sector-specific regulation of telecommunica- tions that has been pursued to date is creating more and more of an imbalance. The same laws and regulations that apply to telecommuni- cations companies also need to apply to internet companies providing the same services. The objective here must be to create equal competi- tive conditions and enable fair distribution of the financial burden involved in broadband expansion. OUR POSITION ON NETWORK NEUTRALITY – THE INTERNET SHOULD STAY OPEN As part of the EU Telecoms Package, regulations on the open internet were adopted and came into effect on April 30, 2016. The regulations particularly address permitted traffic management and transparency requirements and limit commercial product and service differentiation on the internet. Deutsche Telekom remains committed to preserving an open internet. Content and services will continue to be available online in accordance with the best effort principle. This means that data on the Internet are processed without preferential treatment and forwarded in the best pos- sible way. We are continuing to gradually expand our infrastructure so that we can cope with rapidly increasing amounts of data traffic and facilitate innovation in our network. As a result, we are satisfying our customers’ growing demands and meeting the expectations of online content and application providers, who want to be able to provide their services in high quality both now and in the future.

STRATEGY AWARDS AWARDS 28 DEUTSCHE TELEKOM RATED ONE OF THE MOST ETHICAL COMPANIES IN THE WORLD IN 2019 In 2019, the Arizona-based Ethisphere Institute ranked Deutsche Telekom as one of the world’s most ethical companies for the second time. We are the only company in Germany to have been presented with the Ethisphere Award multiple times in succession. Ethisphere commends the excellent performance of companies with the highest ethical competence worldwide. AWARD FOR CLIMATE PROTECTION ALONG THE SUPPLY CHAIN Working on behalf of investors, the non-governmental organization CDP regularly assesses the climate protection activities of listed companies worldwide and compiles an index of leading companies, referred to as the A List. In 2019, Deutsche Telekom featured in this list for the fourth time in a row. The CDP Supply Chain Coverage ESG KPI was reported externally for the first time in 2017. It indicates the degree to which our procurement volume from carbon-intensive suppliers is covered by the CDP Supply Chain Program. As part of the CDP’s supplier program, companies ask their key suppli- ers about their emissions and their climate strategy. We use this pro- gram in order to survey our suppliers. In 2019, we invited 379 suppliers to participate in the CDP Supply Chain Program. These suppliers cover 80 percent of our procurement volume. A total of 204 suppliers took part in the program. They cover 63 percent of the procurement volume (2018: 71.35 percent). Our goal is to cover 70 percent of our carbon- intensive suppliers by 2020. At the same time, we have disclosed our own commitment to climate protection to eight suppliers through this program. Through our commitment to climate transparency in supply chains, we were once again awarded a place in the Supplier Engagement Leader Board in 2019. We intend to continue helping our suppliers to reduce their emissions. The first workshops for this purpose were held in 2019 with selected suppliers. Throughout 2020, we aim to further intensify our dialog with suppliers about reducing emissions in our shared value chain. AWARDS FOR SOCIAL COMMITMENT Comenius EduMedia Seal for Teachtoday In 2019, Teachtoday was awarded two “Comenius EduMedia Seals” by Gesellschaft für Pädagogik und Informationt e.V. (Association for Teach- ing and Information). The initiative impressed an international panel of judges with its Teachtoday online portal and the SCROLLER magazine. The quality of the educational media earned both elements of the initia- tive a seal each in the category of “Communication, media, and adult education.” FOX AWARDS for Scroller dapamedien Verlags KG has been presenting the FOX AWARD to trend setters in marketing and communications since 2011. In 2019, the SCROLLER magazine for children won a silver FOX Award in the cate- gory “Industry, technology, production – internal communication” for its communication concept. It also won silver in the FOX Visual category for its design. German Design Award for Scroller information movie In 2019, the SCROLLER animation series “Did you know?” won the German Design Award in the “Excellent Communications Design / Audi- ovisual” category. The prize, which is presented by the German Design Council, is awarded each year to innovative products and projects that are leading the way in design. German Reading Foundation quality seal for Scroller In 2019, Stiftung Lesen, the German Reading Foundation conferred its quality seal on the children’s magazine SCROLLER, part of the Teachto- day initiative. Their reasoning was: “Engaging, clear layout. Good overall concept. This publication was sorely needed!” AWARDS FOR OUR SERVICE TÜV quality seal for “tested customer satisfaction” For the seventh time in a row, TÜV Rheinland awarded our hotline, our technical service, and the Deutsche Telekom shops the coveted “tested customer satisfaction” quality seal based on a representative survey. Some 2,550 customers in Germany were polled for the study in a representative random sam- pling. With an average grade of 2.0 or better in each case, we achieved the best result since measurements started being taken. “King of Service” In 2019, Deutsche Telekom once again took first place in the customer satisfaction survey conducted by Focus Money. The trade magazine collected more than 275,000 customer votes for its survey. The test question was “which company do you think offers the best service?” Deutsche Telekom came out top for the telecommunica- tions sector, both on a national level and in 51 out of 56 cities. CHIP hotline test 2019 The trade magazine CHIP put the hotlines of 12 different sectors through their paces over several weeks. The testers made 8,906 calls and carried out 1,670 detailed interviews. The Deutsche Telekom hotlines for fixed-line network, mobile, and MagentaTV came out as winners. We achieved the top grade of 1.0 in three evaluation categories (service, wait time, transparency).

ECONOMY SUSTAINABLE FINANCE 30 SUSTAINABLE FINANCE SOCIALLY RESPONSIBLE INVESTMENT SRI investment products consist of securities from companies that have passed an audit based on environmental, social, and governance (ESG) criteria. The development of demand from socially responsible investors for T-Shares serves as an indicator we can use to assess our sustainabil- ity performance. With our Socially Responsible Investment ESG KPI we measure how the financial markets perceive our CR activities. The concept of the United Nations’ Sustainable Development Goals (SDGs) is an increasingly popular topic among investors. This is espe- cially true with regard to the future orientation of the SDGs. To assess the impact of our activities on the SDGs and put it into quantifiable terms, we conducted an impact measurement project in 2018. T-SHARES IN SUSTAINABILITY RATINGS AND INDEXES As part of our CR strategy, we focus on specific rating inquiries, choosing them on the basis of reputation, relevance, and independ- ence. Examples include ratings from RobecoSAM, Sustainalytics, and oekom. In 2018, as part of its biennial analyses, the rating agency oekom once again singled us out as the world’s best telecommunications company for our ecological and social performance. Moreover, T-Shares were again listed on leading sustainability indices, including RobecoSAM’s prominent DJSI World and DJSI Europe. Our shares were also listed yet again in the FTSE4Good index (for the eighth year running) and the UN Global Compact 100 index. For further T-Share listings, please consult the table below. In the reporting year, our shares also made their way into four other sus- tainability indices: the Euronext Vigeo Europe 120, the Euronext Vigeo Eurozone 120, the S&P Europe 350 ESG by RobecoSAM, and the EURO STOXX 50 ESG by Sustainalytics. Furthermore, at the beginning of 2019 we were once again named one of the most ethical companies worldwide by Ethisphere, an institute that promotes ethical business methods. SOCIALLY RESPONSIBLE INVESTMENT (SRI) ESG KPI The Socially Responsible Investment (SRI) ESG KPI indicates the pro- portion of shares in Deutsche Telekom AG held by investors who take, among other criteria, environmental, social, and governance criteria into account for their investment strategy. („SRI Investment“; SRI for „Socially Responsible Investment“) And our commitment for more sustainability pays off: As of September 30, 2019,18 percent of all T-Shares were held by investors who partially take environmental, social, and governance criteria into account for their investment strategy; 3 percent were held by investors who manage their funds primarily in accordance with SRI aspects. Our ambition: increase KPI

ECONOMY SUSTAINABLE FINANCE 32 Deutsche Telekom participates in initiatives for the development and establishment of a comprehensive approach regarding the determina- tion and publication by enterprises and groups of meaningful informa- tion relating to tax matters. The aim is to give a full and differentiated view of the various contributions to the financing of the public domain that are made in connection with or otherwise result from enterprises and entrepreneurial activities. In this respect, Deutsche Telekom deter- mines the so-called „Total Tax Contribution“ for the main European group companies in the telecommunications sector. This approach is explained in more detail in the attached document on Total Tax Contri- bution, which also contains the respective information relating to Deutsche Telekom. Deutsche Telekom intends to determine and pub- lish such information also with respect to subsequent years. TOTAL TAX CONTRIBUTION With its participation in a survey carried out by PwC regarding the Total Tax Contribution, Deutsche Telekom supports an initiative of the Euro- pean Business Tax Forum (EBTF) for the development and establish- ment of a comprehensive approach regarding the determination and publication of information relating to enterprises with respect to tax. In this context Deutsche Telekom has taken the main European group companies in the telecommunications sector into account. At the pre- sent time the information for the reporting year 2018 is available. Deutsche Telekom intends to determine and publish such information also relating to subsequent years. Put simply, the Total Tax Contribution addresses the contributions as a whole to the financing of public domain that are made in connection with, or are a result of enterprises and entrepreneurial activities. In this respect not only are the taxes levied on the profit of the enterprise or group of companies taken into account, further taxes are also addressed, which can be quite substantial, in particular also in the tele- communications sector. Moreover, the so-called “Taxes Borne” as well as so-called “Taxes Collected” are included in the approach in order to comprehensively visualize the financial weight of the enterprise and its activity for the public domain. For example, it also illustrates theaspects of employment and value-added through the presentation of wage taxes, social contributions and value-added taxes. As a consequence, a differentiated and therefore meaningful picture results regarding the positive financial impact on the public community in connection with the enterprise and its activity. In addition this approach can also show national differences in the tax frameworks. Further information regarding the EBTF as well as the PwC survey can be found at https://ebtforum.org/wp-content/uploads/2019/12/Total- Tax-Contribution-A-study-of-the-largest-companies-in-the-EU-and-EFTA- Full-report.pdf and https://www.pwc.com/gx/en/services/tax/publica- tions/total-tax-contribution-framework.html. Under both links, explana- tions and details regarding the definition of the Total Tax Contribution are also given, for example with respect to the concepts of Taxes Col- lected and Taxes Borne and further breakdowns of the Total Tax Contri- bution, as well as a presentation of the findings of the survey carried out by PwC. For 2018 in relation to Deutsche Telekom and for the included group companies (telecommunication sector, Europe, materiality) the Total Tax Contribution was 8.6 bn EUR, consisting of 2.1 bn EUR of Taxes Borne and 6.5 bn EUR of Taxes Collected. With respect to Germany the Total Tax Contribution was approx. 5.7 bn EUR, the Total Tax Contribution relating to all further material European telecommunication group com- panies included in the study (except for Germany) combined amounted to approx. 2.9 bn EUR. The following charts show the Total Tax Contri- bution of the group companies addressed. RESEARCH AND DEVELOPMENT As a telecommunications business, we naturally support ongoing research. The escalating number of inquiries about our research efforts proves we are right to do so. Deutsche Telekom promotes research in a number of ways. Since 2015, for instance, we have supported dementia research through the Sea Hero Quest project, in which a smartphone game records spatial navi- gation data to support scientists in the battle against dementia. We also collaborate with a large number of universities. In 2019, for example, we established a professorship for software engineering (with a focus on blockchain) at the CODE University of Applied Sciences in Berlin. Furthermore, we invest in various fields of research such as the Internet of Things. We invested a total of 45.5 million euros in research and development throughout the Group in 2019. In addition, we support innovative business ideas at “hubraum”, our start-up incubator.

ECONOMY SUPPLIERS 34 As a rule, we use a three-step approach to minimize risks and encour- age our suppliers to improve their practices. Leading up to the supplier evaluation, we rate our categories as critical or non-critical based on risk and opportunity (classification). ƒ Risk categories 2019: 6,208 suppliers (20.6 percent of the procurement volume) ƒ Non-risk categories 2019: 32,365 suppliers (79.4 percent of the procurement volume) We classify products based on risk and opportunity analyses, taking into consideration a wide range of sustainability aspects and risks, including risks of forced/child labor or environmental pollution, as well as opportunities such as the potential to reduce energy consumption. Reporting against standards The Sustainable Procurement ESG KPI together with information about our strategic approach fully covers the GRI 412-1 (Human Rights Assessment) and GRI 414-1 (Supplier Social Assessment ) GRI indica- tors. By providing this information, we cover the V28-04 EFFAS indica- tors (Supply Chain). It is also relevant for criteria 1 (Opportunities and Risks), 3 (Sustainability Goals), 4 (Value Add ed Chain), 6 (Rules and Processes), 7 (Performance Indicators) and 17 (Human Rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact Principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective Abolition of Child Labor). CR-QUALIFIED TOP 200 SUPPLIERS ESG KPI The ESG KPI „CR-Qualified Top 200 Suppliers“ is an internal manage- ment indicator which complements the ESG KPI “Sustainable Procure- ment”. While the ESG KPI “Sustainable Procurement” measures the share of procurement volume reviewed according to sustainability crite- ria, the KPI “CR-Qualified Top 200 Suppliers” reflects the share of sup- pliers from the Top 200 Suppliers pool. These are reviewed based on sustainability criteria according to Self-Assessments, Audits, Supplier Sustainability Workshops and Supplier Development Programs. The share of CR-qualified suppliers taken from the Top 200 pool amounts to 87 percent in 2019. Thus, our target to reach 75 percent by 2020 is already exceeded. In 2020, we will adopt a somewhat different approach to generating the KPIs for sustainable procurement so that we continue to meet current requirements. ESCALATION PROCESS In the event of a significant violation of our requirements, we initiate an escalation process. The escalation process comes into effect whenever a supplier refuses to meet our sustainability requirements in full and to our satisfaction. The procurement organization is primarily responsible for the process, with the GCR unit always on hand to offer advice and support. If the focused discussions held with the relevant supplier on various levels during the escalation process do not lead to the desired outcome, the last resort is to involve the Board of Management. The Board will then make the final decision about how to proceed with the supplier. In the worst case, this could lead to the business relationship with the supplier being terminated. If someone in our supply chain identifies irregularities regarding compli- ance with laws, internal guidelines, and standards of conduct, they can report these anonymously using our Tell me! portal, which is publicly accessible to all our stakeholders. SCORES IN SUSTAINABILITY RANKINGS Every year, leading rating agencies measure the sustainability perfor- mance of large enterprises. Deutsche Telekom scored 83 out of 100 points in the supply chain management category of the 2019 Robe- coSAM Corporate Sustainability Assessment. This makes us one of the leading companies in the ICT sector. SUPPLY CHAIN MANAGEMENT Before doing business with us, every supplier must initially register in our supplier pool. Those who do are fully informed of Deutsche Telekom’s fundamental principles and values regarding corporate responsibility and sustainability.

ECONOMY SUPPLIERS 36 Verification of important social and ecological aspects as well as funda- mental human rights during our audits is in line with internationally rec- ognized guidelines and standards such as the ILO core labour stand- ards, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises. 2019 AUDIT RESULTS In the audit program, which was established and is controlled at the Group level, a total of 84 audits were carried out in 2019. As in previous years, we concentrated our auditing activities on suppli- ers in Asia, Latin America, Southern Europe, and Eastern Europe. Audited suppliers included manufacturers in the areas of IT hardware, software and services as well as networks and devices.During the audits, we identified one case of bribery and consequently ended the business relationship with the supplier with immediate effect. Beyond this, no other cases of corruption, bribery, or critical violations of compli- ance policies or the right to intellectual property were found. Area Findings at suppliers Initiated improvements Status (end of 2019) Child Labor Based on onsite observations Implementation of a new man- Closed & Juvenile and worker interviews, two agement and monitoring sys- Workers juvenile workers were found in tem for juvenile workers a soldering station which repre- including training of line man- sents a hazardous task and a gers to avoid placement of violation of national legislation. young workers in hazardous working stations. Factory did not provide valid Fire inspection certificates Closed fire inspection certificate for available now for all buildings; two production buildings and a fire drills are conducted on a dormitory building. regular basis. Some evacuation indicating All evacuation signs in produc- Closed signs in production buildings tion facilities are functioning were not working correctly. In correctly now. Fire exits and Health & addition, fire exits and escape escape routes in the dormitory Safety routes in the dormitory building buildings have been marked were not marked properly. properly. In addition, specific inspections of fire protection equipment at all production facilities and dormitories are conducted regularly. Thin-walled containers stored All chemical containers were Closed and used in an assembly work- marked with appropriate shop and marked with the safety labels. In addition, names of the chemicals con- Material Safety Data Sheets tained but not with their main (MSDS) for all chemicals were components, safety made available warnings etc.. ƒ Of the 84 suppliers we audited in 2019 (13 of which were in accord- Wages & The factory paid workers below Workers‘ salary has been Closed ance with the validated audit processes of the Responsible Busi- ness Alliance), around 31 percent (26 audits) were direct suppliers and 69 percent (58 audits) were tier 2, 3, and 4 suppliers – that is, indirect suppliers. Benefits the legal minimum wage. Fur- raised and exceeding now the ther, the factory did not pay local legal salary level. Over- adequate overtime compensa- time is payed according to tion as required by law. legal requirements now. ƒ The audits carried out in 2019 revealed a total of 567 violations of Working Workers‘ working hours Introduction of an electronic Closed Deutsche Telekom’s supplier requirements. In the process, a total of 165 violations were corrected in 2019, including several open improvement measures from previous years. These violations included two unacceptable incidents and eight critical findings. Examples of unacceptable and critical violations, as well as intro- duced improvement measures, are published here. Critical findings were discovered at 45 suppliers regarding occupational health and safety, at 45 suppliers regarding working hours, at 34 regarding environmental protection, at 24 regarding labor practices, and at 23 regarding wages and performance-related remuneration. Some 15 critical findings were discovered regarding business ethics. As in previous years, most violations were linked to occupational health and safety (43 percent, compared to 47 percent in 2018), followed by environmental issues at 16.4 percent (12.5 percent in 2018). At 15.7 percent, working hours constituted the third biggest issue (2018: 16 percent). hours exceeded legal requirements time recording system to mon- and also SA8000 standards. itor regular working hours including overtime. Working hours are now under control and meet requirements of national legislation as well as SA8000 standards. Environment The factory has no written Emergency procedures have Closed emergency procedures in been established and commu- place to address accidental nicated to address accidental leaks, spills or uncontrolled leaks, spills or uncontrolled releases of polluting sub- releases of polluting sub- stances. stances. In addition, chemical spill drills are conducted on a regular basis.

ECONOMY SUPPLIERS 38 RESPONSIBLE PROCUREMENT OF RAW MATERIALS We require our suppliers to protect the environment and use resources responsibly. This is anchored in our “Code of Human Rights & Social Principles” and in our Supplier Code of Conduct. As a form of verification, we request our suppliers to disclose informa- tion about their activities and we perform supplier audits (social audits). In these audits, we check whether our suppliers use an environmental management system, including a waste management system, and review how they manage their energy and water consumption. In addi- tion, we explicitly check whether there is a management system in place to address the issue of conflict resources.

ECONOMY SUSTAINABLE AND INNOVATIVE PRODUCTS 40 SMART INNOVATION In this section, we will introduce some "Smart Innovation" solutions. The associated business models are based on the most advanced technology and provide an immediate value-add for our customers. At the same time, these solutions are also making an ecological and/ or social contribution to society.We are, for example, utilizing future-ori- ented and widely available technologies to make cities viable for the future and to develop solutions for social challenges. For this, we are relying on innovative NarrowBand IoT (NB-IoT) technology, with which we are paving the way for the Internet of Things. NB-IoT devices have a large operating range and long battery service lives. Consequently, this technology provides the basis for many innovative uses that are both cost- and energy efficient. Particularly useful areas of application for NB-IoT are, for instance, smart parking, smart cities, smart meters, as well as transport and logistics solutions. End of 2019, NB-IoT was available in more than 4 500 cities and municipalities in Germany. Deutsche Telekom has rolled out NB-IoT in 10 countries. In most of them the countrywide rollout is completed: Germany, Greece, Croatia, Netherlands, Austria, Slovakia and the USA. In Poland, the Czech Republic and Hungary the rollout will be com- pleted shortly. In the area of e-health, we are highlighting, for the reporting year, two innovative applications that provide added social value, in particular, for our customers and for society: the game Sea Hero Quest gives scientists important insights into the spatial navigation ability of individ- uals of all ages, within minutes – and thus 150 times faster than with conventional research methods. Gamers thus make a direct contribu- tion to dementia research while having fun. The other e-health solution, iMedOne®, is a hospital information system. It creates optimal condi- tions for connected work and supports hospital processes in multiple ways. This means that physicians and nursing staff, for instance, are able to access required data and functions at all times and everywhere. This makes a significant contribution to cost-efficiency and quality improvement. An efficient and fully integrated hospital information system that can be used on mobile devices thus improves the quality of care. To date, there is no industry-wide established system that provides sus- tainability information about ICT products and services. We have started to create just such a system using our product analyses – that is, to find out which sustainability contributions our products can make in the first place. We are eager to step up our efforts in informing our customers about such sustainability benefits and thus also sharpen our competi- tive edge. In 2019, we therefore launched the “we care” label for Deutsche Telekom products, services, and initiatives. Deutsche Telekom employ- ees can put forward suggestions for the label, which are then reviewed by an expert committee. A product, service, or initiative can receive the label for its contribution either to environmental protection or digital participation. A brief description beneath the “we care” symbol refers to the specific sustainability benefits. We use the symbol to offer our customers greater transparency and to help them make a purchasing decision.

ECONOMY NETWORK EXPANSION 42 NETWORK EXPANSION OUR APPROACH FOR INFRASTRUCTURAL EXPANSION As the biggest investor in Germany’s network, our network expansion efforts are geared toward three key aspects – growth, efficiency, and quality. We will continue to expand our networks, increase the efficiency of our systems, and further strengthen our role as a leader in network quality. Germany’s mobile network is being expanded under the terms and con- ditions resulting from the 2019 spectrum auction held by the German Federal Network Agency. Our initial target is to ensure nearly all house- holds in the country (99 percent) have LTE coverage by the end of 2020. We will also continuously improve the coverage of traffic routes with bandwidths of 100 Mbit/s or 50 Mbit/s. At the same time, we are kick- starting a new generation of mobile communications across the whole of Germany. By the end of 2025, we will provide 5G coverage to 99 per- cent of the population. In the fixed network, we have almost completed our FTTC (fiber to the curb) build-out and are now bringing fiber-optic connections into customers’ homes through our FTTH (fiber to the home) expansion. Our initial focus is on expanding into business parks and rural areas (with state funding) and establishing collaborations. Over the coming years, we will successively extend our FTTH expansion to reach up to an additional 2 million households each year. PROGRESS IN NETWORK EXPANSION Part of our network strategy is to also systematically build out our mobile networks with 4G/LTE technology to increase transmission rates in all national companies. Thanks to investments in our 4G/LTE net- work, our customers enjoy better network coverage with fast mobile broadband. In 2019, for example, we were already providing approxi- mately 98.1 percent of the population in Germany with LTE coverage and 98 percent in Europe. This puts us right on schedule to reach our goal of 99 percent network coverage by 2020. Furthermore, around 31 million households in Germany can already order a rate with up to 100 Mbit/s on our fixed network. This figure keeps growing daily, as can be followed in our online expansion tracker. UPDATING AND STABILIZING THE NETWORK ARCHITECTURE We are making our networks faster and more efficient. To do this, we are deactivating all analog public switched telephone network (PSTN) platforms that we no longer need and switching our entire telephone network to IP-based lines. By the end of 2019, around 99 percent of lines had already been switched to IP technology. Irrespective of the expansion and renewal of our infrastructure, we aim to operate our networks in the most stable and failure-free manner pos- sible. Major events such as festivals and summits place the network under particular strain. We make sure, however, that voice calls and data are still transmitted in the quality our customers have come to expect by temporarily setting up extra mobile masts or laying fiber-optic cables. In the event of natural disasters such as floods, our Disaster Recovery Management team ensures those affected can quickly start communicating again. 5G EXPANSION In October 2018, Deutsche Telekom presented an eight-point program for developing a 5G network infrastructure. The aim in Germany is to cover 99 percent of the population and 90 percent of the country with 5G by 2025.

ECONOMY CUSTOMER SATISFACTION 44 CUSTOMER SATISFACTION Customer satisfaction and loyalty scores are factored into both the long- term variable remuneration scheme for our board members and, to an extent, the performance assessments of our managers, meaning some of their variable salary components are linked to these ratings. This key performance indicator is also used as a parameter in the long- term incentive plan for our managers (excluding Board of Management members). OUR APPROACH FOR TOP SERVICE QUALITY We strive to offer impeccable service that turns our customers into loyal fans. That’s why we have set out to offer a service that rolls digitalization and compassion into one. Our staff members are free to decide for themselves, based on the relevant circumstances, how to best help our customers and ensure they enjoy a positive experience. Our solution consists of devoting more time to customers, answering their queries on the spot and with a smile, and being there when they need us. In this way, we transform contact with customers into genuine client relations. Overall, this approach has enabled us to cut customer complaints by more than half since 2017. We have successfully reduced the propor- tion of missed technician appointments to 1.5 percent and the average wait time on the hotline to under two minutes. Just as importantly, how- ever, we have been able to resolve many customer requests on first contact and have thus improved our first resolution rate. These achieve- ments have also been independently verified by numerous successes in tests that show we are on the right track. MEASURING CUSTOMER RETENTION AND ENDORSEMENT We use the TRI*M index to gauge customer retention and regularly participate in benchmarking. The recorded data is based on a customer survey conducted in all markets and segments, except the United States (T-Mobile USA). The TRI*M value for the Deutsche Telekom Group is calculated by aggregating country and segment values. The index itself is determined based on four individual issues (competitive edge, performance, continued use, and recommendation). The Group-wide TRI*M index was 67.3 points in the 2019 reporting year, which constitutes a modest decrease compared to the benchmark value of 68.5 and means the Group did not achieve the slight increase it had hoped for. This decrease can be attributed primarily to the trans- formation of the Systems Solutions operating segment of T-Systems, during which it proved impossible to maintain the above-average level of customer satisfaction previously achieved. In addition to the largely stable values in the other areas, this caused the Group value to decline. Our goal for the coming years is to again improve customer satisfaction in all areas. The TRI*M index for Germany remained at the previous year’s level at 61 points. That means we didn’t attain our goal of a slight increase. Our target for 2020 is to achieve an improvement for the Group as a whole and to increase the TRI*M index by 0.5 points for the Germany segment.

ECONOMY CONSUMER PROTECTION 46 MOBILE COMMUNICATIONS AND HEALTH (EMF) Electromagnetic fields (EMFs) are a prevalent element in our connected world, even if we are not able to perceive them directly. Their effects on our health remain a topic of discussion. It is very important to make sure that the EMFs employed do not present a problem for people or the environment when we use them in mobile communications. The effects of electromagnetic fields have been thoroughly researched over past decades in numerous scientific studies. The World Health Organization (WHO) analyzes the findings of scientific research and most recently made a statement regarding the results in October 2014. In its statement, the World Health Organization concludes that the cur- rent threshold values for electromagnetic fields ensure that mobile com- munications technology can be used safely but that further research is required. Deutsche Telekom has made a commitment to actively address scien- tific research on mobile communications and health. We provide detailed information on the Group website on the latest technology and scientific risk assessments published by expert committees. In 2019, for instance, we extended our „Fakten zu Mobilfunk und Gesundheit” (“Facts about mobile communications and health”) brochure to include a 5G factsheet and a new flyer containing answers to the 14 most important questions regarding mobile communications and health. Together with Telefónica Deutschland, we also support the information platform www.informationszentrum-mobilfunk.de. This platform pro- vides expert and evidence-based information on mobile communica- tions topics subject to controversial public debate: about health, research, technology, benefits, and applications. In 2019, Information- szentrum published, among other things, a new brochure on 5G and interviews with scientific experts on these topics. of conflict. 95 percent of the municipalities surveyed said that they had had little or no controversial decision-making cases. The report was published by the German Federal Environment Ministry. Our Group-wide EMF Policy, which we adopted in 2004, plays a pivotal role. The policy specifies standardized minimum requirements in the area of mobile communications and health, requirements that by far exceed those set forth by national laws. Our policy provides our national companies with a mandatory framework that makes sure that the topic of mobile communications and health is addressed in a consistent, responsible way throughout the Group. All of our national companies have officially accepted the EMF Policy and implemented most of the required measures. Our EMF Policy stipulates the following principles and measures: Transparency We place importance on openly discussing issues involved in mobile communications. We make all relevant information regarding our mobile communications equipment in Germany accessible to the pub- lic, e.g., on the EMF database operated by the German Federal Network Agency. Information We provide consumer information that is easy to understand and pur- sue a fact-based, sound information policy. On our Group website we provide the latest information to those interested. We also provide our customers with information on the SAR levels of their devices. In addi- tion, customers can get information on SAR levels at many of our shops, via our free environmental hotline, or via email. Participation We rely on close collaboration and constructive dialog with all those involved, including communities, when it comes to network expansion. Our goal is to find amicable solutions and negotiate acceptable com- promises, which can only be achieved by responding fairly to critical arguments and being ready to learn from mistakes. Promoting science & partnerships Our guidelines call for promoting targeted research, scientific excel- lence, transparency, objectivity, and intelligibility. We conduct ongoing reviews of compliance with our EMF Policy. The findings are used to improve individual aspects and develop solutions in different working groups such as our EMF Core Team and the EMF Technical Working Group.

ECONOMY DATA PROTECTION AND DATA SECURITY 48 Our approach to big data Growing volumes of data call for particular precautionary measures to protect citizens’ privacy, which is why, back in 2013, we approved eight mandatory principles for handling big data. In 2015, we also approved specific measures to protect data and infrastructure in our “Ten-point program for increased cybersecurity.” On top of that, we developed special protective products, including our Mobile Encryption app designed to ensure end-to-end encryption of mobile communication. Reviewing our products Data privacy and security play an important role that starts during the development of our products and services. Our Privacy and Security Assessment (PSA) procedure allows us to review the security of our systems in each step of the development process. This procedure applies to newly developed systems as well as existing systems that undergo changes in technology or in the way data is processed. We use a standardized procedure to document the data privacy and data security status of our products throughout their entire life cycle. TRANSPARENCY REPORT Telecommunications companies are legally obliged to assist security agencies. This includes, for example, surveillance measures to record telecommunications connections and information about account hold- ers. Every year since 2014, Deutsche Telekom has published a transpar- ency report for Germany, which covers the types and amount of informa- tion we disclose to security agencies. In 2016, the transparency report was expanded to include all the national companies. The matching international report was last pub- lished in February 2019. International legal framework conditions differ considerably. In some countries it is illegal to disclose security measures, while in others surveillance is directly conducted by the authorities without the involvement of telecommunications companies. You can find out more about the different situations in the relevant countries on our website. We consider it the responsibility of the authorities to ensure transpar- ency regarding security measures and called for improved online secu- rity in the context of a ten-point program in January 2015. Until state authorities meet our demands, we will strive to provide the necessary transparency ourselves to the extent legally possible. CYBERSECURITY We offer security products and services across Europe. Our Telekom Security unit focuses on internal security issues and develops security solutions for consumers as well as business custom- ers. This approach enables us to provide our customers with the right security solutions along the entire value chain – from product develop- ment and applications through to secure, high-performance networks and high-security data centers. Technological developments can also harbor risks, which is why we develop targeted measures for combating potential new security risks – such as those associated with drones, for example. We developed the Magenta Drone Shield together with our partner Dedrone. To enhance collaboration in the area of digital defense, we regularly host the Cyber Security Summit together with the Munich Security Conference. In addition, we collaborate with research institutes, industry partners, initiatives, standardization committees, public institutions, and other internet service providers on a global scale. Together, we want to fight cybercrime and improve online security. We collaborate, for example, with the German Federal Office for Information Security (BSI) through- out Germany and with the European Union Agency for Network and Information Security (ENISA) at a European level. We also provide up-to-date information about all of our data protection activities on our Group website under “Data protection and data security”. OUR CYBERSECURITY INFRASTRUCTURE Cyber Emergency Response Team We are always working to develop new ways to defend against attacks. We launched a Cyber Emergency Response Team (CERT) in the mid- 1990s, which is responsible internationally for managing security inci- dents for our information and network technologies. Since then, we have continued to expand our activities in relation to cyber defense, information on attacks, and information sharing. Cyber defense center In 2017, we opened a new cyber defense center with integrated security operation center (SOC) in Bonn. There we analyze behavioral patterns on the internet and draw up defense strategies. This new defense center is one of the largest and most advanced ones of its kind in Europe, analyzing 2.5 billion pieces of security-relevant data from 3,300 data sources every day. What’s more, the cyber defense center processes about 200 requests, filters about 5,000 viruses and malware programs, and scans on average 100 million incoming emails for spam every day. This is how we protect our infrastructure, and hence also our customers’ data. Some 200 security experts work round the clock at the new SOC in Bonn and its affiliated national and international locations. The measures that we undertake to fight cyberattacks on our own infra- structure are also available to other companies. More than 30 German DAX companies and SMEs employ our services for their own protection. PROTECTION OF PERSONAL DATA Protecting our customers’ data is one of our top priorities. We also pro- vide up-to-date information about all of our data protection activities on our Group website under data protection and data security. The follow- ing examples serve as a brief excerpt of our recent activities: International cooperation for cyber security In 2018, we once again promoted data security on an international level. Among other things, we are a founding partner of the Charter of Trust, which was signed at the Munich Security Conference in February.

ECONOMY DATA PROTECTION AND DATA SECURITY 50 Reporting against standards The information on the indicator "IT Security & Data Protection" is rele- vant for GRI indicator GRI 418-1 (Substantiated complaints concerning breaches of customer privacy and losses of customer data). It is also used in our reporting on Global Compact Principle 1 (Protection of international human rights).

ECONOMY FINANCIAL PERSONNEL INDICATORS 52 FINANCIAL PERSONNEL INDICATORS REVENUE PER EMPLOYEE In the year 2019, revenues per employee increased to EUR 378,000 groupwide – this represents an increase of about 8 percent. In Ger- many, the revenues per employee has increased by 5 percent. Outside Germany, revenues per employee also increased slightly by about 6 percent. You can find further information in the HR Factbook. One driver for the 0.6 percentage point improvement in the adjusted personnel expenses ratio in the Group is the significant increase in Group revenues. The disadvantage of the personnel cost ratio is that it ignores external personnel costs. Therefore the total workforce costs ratio is more mean- ingful for the management of personnel costs at Deutsche Telekom. HR EBITDA (RATIO) The so-called „HR EBITDA“ of Deutsche Telekom Group (without T-Mobile US) puts into ratio the calculated earnings per employee with the investments in training per employee. PERSONNEL COSTS AND PERSONNEL COST RATIO Reporting against standards This data is relevant for the GRI 404-1 (Average hours of training per year per employee) and GRI 404-2 (Programs for upgrading employee skills and transition assistance programs) GRI indicators as well as the S02-02 (Training expenses per employee) EFFAS indicator. This data also covers criterion 16 (Steps taken to promote the general employ- ability of all employees) of the German Sustainability Code. By personnel costs we mean basic personnel costs (salaries) and inci- dental personnel expenses. The indicator is adjusted for special factors in conjunction with personnel restructuring measures (individual down- sizing instruments). The personnel cost ratio represents personnel costs as a proportion of revenue. The development of this rate serves as a benchmark for company business. In the Group as a whole, the personnel expenses ratio in 2019 fell slightly compared with 2018.

ENVIRONMENT CLIMATE STRATEGY 54 CLIMATE STRATEGY CLIMATE STRATEGY One of our goals is to reduce the negative environmental impact of our business activities. One important milestone is our climate target. By the year 2020, we are planning to reduce the absolute amount of CO2 emissions we produce by 20 percent compared to the base year 2008 (excluding T-Mobile US). We expect to achieve this goal. In 2018, we have also developed a new climate target for the period after 2020. Our integrated climate strategy is part of our Corporate Responsibility strategy, which we have aligned with our Group strategy. This is how we ensure that climate protection measures are closely linked with our core business. We have defined objectives and/or key performance indica- tors for each of the four aspects of our climate strategy (“Emissions from the value chain”, “Renewable energy”, “Energy efficiency”, and “Positive social effects (Enablement)”). Emissions from thevalue chain We record all direct and indirect emissions using the globally recog- nized “Greenhouse Gas (GHG) Protocol”. By 2030, we aim to reduce our Scope 1 and Scope 2 emissions by 90 percent compared to the base year 2017. Since most of our emissions are caused by the use of electricity, our primary focus is to increase the share of renewable ener- gies in the electricity mix. By 2021, we will fully convert our entire Deutsche Telekom network, across the entire gamut from mobile tele- communications to the high-speed DSL network, to use electricity entirely from renewable sources. We will also reduce emissions pro- duced through the use of gas and oil, for instance. In addition, we will improve efficiency in areas with particularly high energy consumption, especially in our networks and data centers. This has already allowed us to moderately reduce our emissions over the past few years (excluding T-Mobile US) – despite rapidly growing data volumes and the necessary network build-out. Indirect emissions from the upstream and downstream value chain (Scope 3 emissions) make up the largest share of our total emissions. We have also set ourselves a target for achieving a reduction in such emissions: by 2030, we aim to reduce all emissions resulting from the manufacture and use of Deutsche Telekom products by 25 percent per customer (using 2017 as our base year). In September 2019, as part of an international industry initiative, we also committed to reducing our CO2 emissions to "net zero" by 2050 at the latest. By the year 2020, we are planning to reduce the absolute amount of CO2 emissions we produce by 20 percent compared to the base year 2008 (excluding T-Mobile US). We expect to achieve this goal. In 2018, we have also developed a new climate target for the period after 2020. Renewable energy We are researching and evaluating various options to increase our pro- portion of green energy. Possibilities include purchasing energy certifi- cates from renewable sources, but also, where possible, using cogen- eration (“CHP”) plants to generate our own renewable energy. Several of our national companies sourced 100 percent of their electricity from renewable sources in 2019: Greece, Croatia, the Netherlands, Austria, and Hungary. When purchasing electricity, we take a variety of sustaina- bility factors into consideration on a Group-wide level. These include, for instance, the average emission factor of the electricity mix (i.e., the amount of emissions for every kilowatt hour of electricity used) and the proportion of renewable energy. These parameters help us make our energy mix more transparent and increase the share of energy obtained from renewable sources at our company. We will shift our entire electric- ity consumption to 100 percent renewable energy by 2021. Energy efficiency Since the operation of our network infrastructure calls for a considera- ble amount of energy, we are investing in modernization and energy- efficient technology. For instance, we are migrating our network infra- structure to IP technology, which is not only more powerful, but also consumes less electricity than existing technologies. In addition, we are working to process data traffic from no more than a few, particularly efficient data centers. Higher energy efficiency also always brings a reduction in CO2 emissions. In order to measure our progress, we use key performance indicators (KPIs) Energy Intensity and Carbon Intensity. Positive social effects (Enablement) Many of our products and services provide sustainability advantages. They can help reduce energy consumption and CO2 emissions, improve healthcare, and make logistics more efficient. In addition to our own carbon footprint, we also calculate the positive CO2 effects facilitated for

ENVIRONMENT CLIMATE STRATEGY GOVERNANCE Disclosures Guidance Input 56 a) Describe the Board’s oversight of climate-related risks and opportunities. b) Describe management’s role in assessing and managing climate- related risks and opportunities. ƒ Processes and frequency by which the Board is informed ƒ Deutsche Telekom’s Board of Management is informed every year about the about climate-related issues. ƒ Does the Board consider climate-related issues when ƒ reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, and business plans? ƒ setting the organization’s performance objectives? ƒ monitoring implementation and performance? ƒ overseeing major capital expenditure, acquisitions, and divestitures? ƒ How the Board monitors and oversees progress against goals and targets for addressing climate-related issues. status of the company’s climate target achievement and climate protection issues in the Climate Target Monitoring Board Report. ƒ Deutsche Telekom’s risk management unit reports on a quarterly basis. If any unforeseen risks arise outside the regular reporting of key risks and opportuni- ties, they are recorded as appropriate. ƒ The identified relevant risks are reported to the Board of Management of DT. The DT Board of Management informs the Supervisory Board accordingly. ƒ Leading climate protection KPIs (Energy Intensity, Carbon Intensity) are part of the quarterly reporting to the responsible Board member (CHRO). ƒ The Audit Committee of the Supervisory Board appraises the risks at its meetings, and the main relevant risks for the Deutsche Telekom Group are also integrated into our Annual Report. ƒ The CR Board is informed about climate protection issues based on require- ments. ƒ Risk reporting will be expanded to encompass even more comprehensive inclu- sion of long-term climate-related risks. ƒ Financial implications have been integrated into business planning; further management instruments are evaluated for integrating climate protection into investment decision-making (e.g. internal price on carbon). ƒ Deutsche Telekom’s Board of Management decided on a new climate protection strategy for 2030 including a Science-Based Target. ƒ The overarching corporate strategy was extended at the end of 2019 by “acting responsibly”. This puts a major focus on CO2 and resource reduction as part of Telekom’s strategic direction. ƒ As part of our „We Care for our Planet“ initiative, we have examined our value chain for opportunities to achieve greater resource efficiency and CO2 reduction. Ten areas for action have been identified and these were approved by the Board of Management. ƒ Has the organization assigned climate-related responsibilities ƒ Deutsche Telekom’s current organizational CR structure can be found in to management-level positions or committees? the CR Report ƒ And, if so: ƒ At DT, the responsibility for CR includes oversight of climate-related issues. ƒ Do such management positions or committees report to the Board? ƒ Do those responsibilities include assessing and/or mana- ging climate-related issues? ƒ Description of the associated organizational structure(s). ƒ Processes by which management is informed about climate- related issues. ƒ How management (through specific positions and/or management committees) monitors climate-related issues.

ENVIRONMENT CLIMATE STRATEGY RISK MANAGEMENT Disclosures Guidance Input 58 ƒ Risk management processes for identifying and assessing cli- ƒ The process for the identification of climate change related risks and mate-related risks. opportunities includes: ƒ Determining the relative significance of climate-related risks in ƒ screening media and NGO publications relation to other risks. ƒ The consideration of existing and emerging regulatory requi- rements related to climate change (e.g. limits on emissions) as well as other relevant factors. ƒ Processes for assessing the potential size and scope of identi- fied climate-related risks. ƒ Definitions of risk terminology or references to existing risk classification frameworks used. ƒ actively supporting the work of various industry associations dealing with climate change, e.g. GeSI, econsense, 2-Degree Foundation, ICC, GSMA, ETNO ƒ participation & initiation of climate change related stakeholder dialogs ƒ analysis of the responses to the CDP supply chain program ƒ analysis of changes in information requests from ratings such as RobecoSAM, CDP, Sustainalytics, and others ƒ quarterly assessment of relevant data. ƒ The process for the assessment of climate change related risks and opportuni- ties includes: ƒ identification & quantification of the relevant developments ƒ calculation of the impact on operations ƒ analysis of impact on value chain. ƒ Furthermore, Telekom’s processes for identifying and assessing climate-related risks are integrated into multi-disciplinary company-wide risk identification, assessment, and management processes. ƒ Current regulation is relevant and always considered, owing to the need to com- ply with statutory regulations. DT (in Germany) therefore uses the WEKRA data- base, which is assessed by CR specialists, to track changes in the regulatory environment. DT also uses its internal capacities (e.g. policy and regulatory affairs) for assessing and evaluating the impact of existing regulations, like ETNO, BDI, bitkom, econsense, etc. ƒ Emerging regulation is considered whenever it is relevant and can be anticipa- ted. DT is also aware of upcoming regulations by actively working within various industry associations, e.g. GeSI, econsense or bitkom and intensive stakeholder dialogues with NGOs, e.g. WWF. ƒ Processes for managing climate-related risks, such as ƒ how decisions are made to mitigate, transfer, accept, or control those risks ƒ DT manages (climate-related) risks and opportunities, identified by intensive risk screening and assessed on the basis of market research and expert knowledge, according to the process described above and published in our Annual Report. ƒ which processes are available for prioritizing climate- related risks ƒ how materiality determinations are made within the organization. ƒ How the processes for identifying, assessing, and managing climate-related risks are integrated into overall risk manage- ment. Please note: We are currently evaluating internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This is to be based on the existing approaches to strategy, controlling and risk management. a) Describe the organization’s processes for identifying and assessing climate- related risks. b) Describe the organization’s processes for mana- ging climate-related risks. c) Describe how processes for iden- tifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk manage- ment.

ENVIRONMENT CLIMATE STRATEGY 60 ADDRESSING CLIMATE RISKS In the context of our integrated climate strategy, we determine potential opportunities and risks that exist for us as well as for our stakeholders. We report to the Board of Management quarterly on current climate risks within the context of our “Group Risk Report”. You will find more information on risk management in the “Risk and opportunity manage- ment” section of our annual report. Physical risks Extreme weather conditions as a consequence of climate change will have a negative impact on our business processes and will inevitably lead to incidents or even network outages. Among the effects of such breakdowns is their massive impact on the management of rescue oper- ations, for example, sometimes even rendering such emergency efforts entirely impossible. In order to be able to react appropriately in these cases, our internal “Group Policy on Continuity and Situation Manage- ment” defines responsibilities, processes, and measures. It also outlines how to handle emergency and crisis situations like floods. In addition, possible consequences of climate change are also taken into account when planning our future business activities. For instance, our network infrastructure is set up to be protected from storm conditions, changes in temperature, and high winds. Financial risks Climate change also carries financial risks, whether from levies on CO2 emissions or an increase in energy costs. Our contribution to the mitiga- tion of these risks is that we measure our own energy efficiency and develop measures for improvement. Extreme weather events are another possible cause of infrastructure failure, and this could necessi- tate additional investment in a more robust infrastructure. Prevention We also help our customers reduce their carbon footprint by providing them with innovative solutions (mitigation). Possible examples include innovative projects in the area of sustainable urban development and mobility, and real-time solutions for agriculture. These do not only help reduce emissions, but also optimize the use of fertilizer, seed, and machinery. Increasing yields can help us achieve the second sustaina- ble development goal (SDG) of “zero hunger”. On top of that, we also help our customers deal with the adverse effects of climate change (adaptation). In the event of an imminent catastrophe, our infrastructure can be used, for example, to send alerts via early warning apps.

ENVIRONMENT CO2E EMISSIONS 62 CO2E EMISSIONS CARBON INTENSITY ESG KPI DEUTSCHE TELEKOM GROUP Since 2016, we have reported on the Carbon Intensity ESG KPI. In contrast to the existing CO2 Emissions ESG KPI, the new ESG KPI shows the CO2e emissions in proportion to the transmitted data vol- umes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. Our ambition: decrease KPI more relevant for criterion 13 (Climate-relevant emissions and objec- tives) of the German Sustainability Codex. It is also used for reporting on the Global Compact principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility). CARBON INTENSITY ESG KPI DT GROUP IN GERMANY Since 2016, we have reported on the Carbon Intensity ESG KPI . In contrast to the existing CO2 Emissions ESG KPI, the new ESG KPI shows the CO2e emissions in proportion to the transmitted data vol- umes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. Data assured by PwC. For detailed assurance comments see „DT Group in Germany“. The ESG KPI figure also takes into account total CO2 emissions for all energy sources – fuel, gas, district heating and electricity, The data volume is composed of the transmitted IP data volumes (including Voice over IP, Internet, IP-TV). Data assured by PwC. Data is partly based on estimates, assumptions and extrapolations. The calculation method was adjusted in 2017. Values cannot be directly compared to the previous year. The ESG KPI figure also takes into account total CO2 emissions for all energy sources – fuel, gas, district heating and electricity, The data volume is composed of the transmitted IP data volumes (including Voice over IP, Internet, IP-TV). Reporting against standards The Carbon Intensity ESG KPI is relevant for the GRI indicator GRI 305-4 (Greenhouse Gas Emissions Intensity). This information is relevant for EFFAS KPI E02-01 (Greenhouse gas emissions Scope 1-3). It is further-

ENVIRONMENT CO2E EMISSIONS 64 E-EMISSIONS (SCOPE 1 & 2 EMISSIONS) TOTAL CO 2 Our CO2 emissions are largely driven by our electricity consumption. That’s why the table below contains very detailed information about the Group numbers for the Scope 2 emissions resulting from our electricity consumption. We differentiate between the market-based and location- based methods, thereby adhering to the GHG Protocol Scope 2 Guid- ance. Market- and location-based emissions are reported in CO2 equiva- lents (CO2e). This change was made in order to allow a transparent comparison between Scope 1 to 3 emissions and to be consistent with the requirements of the Science-Based Targets Initiative, to which the new target is also geared. The leading reporting method is the market- based approach. This method is used to calculate emissions with a spe- cific emissions factor (provider factor) per DT company. This factor depends on a company’s actual energy procurement (electricity mix); procuring renewable energy (direct purchase, certificates) reduces emissions.a) In contrast to the market-based method, with the location-based method the emissions factors for the respective country are used (the country mix factor of the International Energy Agency (IEA)). A company’s actual energy procurement (electricity mix) is hence not taken into account, i.e., not even the procurement of renewable energy over and above the country mix. Change compared to the previous year: The Scope 2 emissions calcu- lated according to the market-based method are about 20 percent lower than in the previous year. The main reason for this is the direct purchase of renewable energy at T-Mobile US and the increased purchase of renewable energy certificates (RECS , GoO) at our national companies in Germany. a) If no provider factors are available for the market-based method, the country-related residual factor is used (based on the RE-DISS project of the European Commission, which assessed the national share of renew- ables). If there is no residual factor available either, the IEA factor is used (same as with the location-based method). As a rule, the value of the emission factor in the residual mix is higher than the IEA’s country mix factor. Renewable energy certificates are included in all cases. b) For our national company T-Mobile US, the market-based Scope 2 emissions were calculated using the eGRID emissions factors, which are reported by the American Environmental Protection Agency accord- ing to different grid regions in the USA. In addition, the quantities of electricity from renewable energy sources obtained under Power Purchase Agreements (PPAs) were taken into account in reducing emissions. Data verified by PwC. For detailed audit comments see „DT Group in Germany“ and „T-Mobile USA“. Data assured by PwC. For detailed assurance comments see „DT Group in Germany“ and „T-Mobile USA“. Data assured by PwC. The 2017 calculation was based on the utility's electricity mix. If this is was not possible, the residual mix or country mix was used. Values cannot be directly compared to the previous year. For detailed assurance com ments see „DT Group in Germany“ and „T-Mobile USA“. Reporting against standards By reporting our direct and indirect CO2 emissions (Scope 1 & 2) in accordance with the Greenhouse Gas Protocol, we fully cover the GRI 305-1 (Direct GHG emissions) and GRI 305-2 (Energy indirect GHG emissions) and partially cover the E02-01 (Total Scope 1-3 greenhouse gas emissions) EFFAS indicator. This data is also relevant for criteria 11 and 12 (Usage of natural resources) and 13 (GHG emissions) of the German Sustainability Code. It is also used for reporting on the Global Compact principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility). E-EMISSIONS (SCOPE 3) DEUTSCHE TELEKOM TOTAL CO 2 IN EUROPE* The majority of our total emissions can be classified as Scope 3 emissions. Scope 3 emissions are all emissions from the upstream and downstream value chain, which are generated in the supply chain, by business travel, commuter traffic ("upstream") or at the customer's premises by the use of products and services ("downstream"). Their recording is based on the globally recognized "Greenhouse Gas (GHG)" protocol. The graph shows Scope 3 emissions from 2017-2019, classified by emission sources. Upstream emissions accounted for around 46% of Scope 3 emissions in 2019, while downstream emissions accounted for around 54%. The basic data used to calculate Scope 3 emissions are reported in the key figure tool. You will find more information on record- ing Scope 3 emissions along the value chain here.

ENVIRONMENT ENABLEMENT FACTOR 66 ENABLEMENT FACTOR EMISSIONS ENABLEMENT FACTOR: CUSTOMERS SAVING ON CO 2 In addition to our own carbon footprint, we also calculate the positive CO2 effects facilitated for our customers through using our products and solutions. The ratio between these two figures – the “enablement factor” – allows us to assess our overall performance when it comes to climate protection. Since 2014, we have examined the savings potential for various products, 16 of which were in 2019. One example of savings made possible by our products is cloud com- puting, which enables our customers to reduce their CO2 emissions by using our cloud services and outsourcing their existing infrastructure to our efficient data centers. Better servers, more energy-efficient data centers, and higher infrastructure capacity utilization can cut energy consumption and the associated emissions by up to 80 percent. ESG KPI ENABLEMENT FACTOR FOR DT GROUP IN GERMANY We use the "Enablement Factor" to measure our overall performance in climate protection. According to this, in 2019 in Germany the positive CO2 effects enabled by our customers were 144% higher than our own CO2 emissions (enablement factor of 2.44 to 1). The positive CO2 effects facilitated for our customers through the use of our products and solutions rose from 12.1 to 13.9 million tons in 2019. With the ESG KPI "Enablement factor" we calculate the positive CO2 effects that arise on the customer side through the use of our products. Our ambition: increase KPI Reporting against standards Information on the enablement factor is relevant for GRI Indicator GRI 305-5 (Reduction of Greenhouse Gas Emissions). The information is rel- evant for the EFFAS KPI S13-01 (Intermodality). It is furthermore relevant for criterion 13 (Climate-relevant emissions and objectives) of the Ger- man Sustainability Codex. It is also used for reporting on the Global Compact principles 7 (Precautionary approach) and 8 (Promoting envi- ronmental responsibility). ESG KPI ENABLEMENT FACTOR FOR DEUTSCHE TELEKOM GROUP IN EUROPE In 2019, the positive CO2 effects enabled by our customers across Europe were 74% higher than our own CO2 emissions (enablement factor of 1.74 to 1). The positive CO2 effects made possible on the customer side by using our products and solutions amounted to almost 15.8 million tonnes in the reporting year. With the ESG KPI "Enablement factor" we calculate the positive CO2 effects that arise on the customer side through the use of our products.

ENVIRONMENT ENERGY CONSUMPTION & EFFICIENCY 68 ENERGY CONSUMPTION & EFFICIENCY OUR APPROACH FOR ENERGY-EFFICIENT NETWORKS We operate our own fixed-line and mobile networks in Europe and the United States. The majority of our energy requirements come from oper- ating this network infrastructure. In the interest of our customers, we continue to increase the capacity and performance of our networks so that we can handle growing amounts of data and improve the speed and quality of data transmission. However, this also means higher energy requirements. In order to reduce our energy needs, we are pur- suing the following approaches: ƒ We are updating our network infrastructure, e.g., by migrating to IP technology and removing equipment we no longer need. ƒ We are optimizing energy generation and supply with the help of technical innovation. ƒ We are working on firmly embedding the aspect of “energy efficiency” in the architecture and design phase of new technology selection through specifications and requirements. ƒ We use energy-efficient technology not just for our networks, but also for lighting, monitoring, and – most importantly – cooling our systems. Our internal energy service provider, Power & Air Solutions, whose energy management has been ISO 50001 certified since 2013, plays a key role in these activities. ENERGY INTENSITY ESG KPI DEUTSCHE TELEKOM GROUP Since 2016, we have reported on the Energy Intensity ESG KPI. In con- trast to the existing Energy Consumption ESG KPI, the new ESG KPI shows energy consumption in proportion to the transmitted data vol- umes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. Our ambition: decrease KPI The ESG KPI figure also takes into account total energy consumption for all energy sources – fuel, gas, district heating and electricity. The data volume is composed of the transmitted IP data volumes (including Voice over IP, Internet, IP-TV). Reporting against standards The Energy Intensity ESG KPI is relevant for the GRI indicator GRI 302-3 (Energy Intensity). This information is relevant for EFFAS KPI E01-01 (Energy consumption, total). It is furthermore relevant for criterion 12 (Resource management) of the German Sustainability Codex. It is also used for reporting on the Global Compact Principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility). ENERGY INTENSITY ESG KPI DT GROUP IN GERMANY Since 2016, we have reported on the Energy Intensity ESG KPI. In contrast to the existing Energy Consumption ESG KPI, the new ESG KPI places the energy consumption into a ratio with the managed data vol- umes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. Data assured by PwC. For detailed assurance comments see „DT Group in Germany“ Data assured by PwC. Data is partly based on estimates, assump- tions and extrapolations. The calculation method was adjusted in 2017. Values cannot be directly compared to the previous year.

ENVIRONMENT ENERGY CONSUMPTION & EFFICIENCY 70 ƒ Using LED lighting and motion sensors ƒ Using efficient building technology (e.g., high-efficiency pumps, fre- quency-dependent ventilation) ƒ Optimizing pre-programmed usage profiles (such as through absence profiles) ƒ Using efficient building automation systems Building shell The energy efficiency of the building shell is critical for all construction and renovation measures. This includes the energy-based design of facades, roofing, doors, and windows. GENERATION AT ESG KPI “PUE” – REDUCED CO 2 DATA CENTERS An important indicator for controlling our climate protection measures and the efficiency of our data centers is the annual “Power Usage Effectiveness (PUE)” value. The PUE factor is an indicator of the increased efficiency of the infra- structure in our data centers. The factor is calculated using the ratio between the total electrical energy consumed by the data center and the amount of electrical energy consumed by IT. We were able to reduce the average global PUE factor at our T-Systems data centers from 1.85 to 1.64 between 2011 and 2019. A reduction from 1.67 to 1.56 was also achieved for Germany between 2008 and 2019. To reduce CO2 emissions at our data centers (DC), we are optimizing energy consumption at individual data center locations and improving processes throughout the global data center landscape. Our state-of- the-art data centers, e.g., in Munich or Biere, are set up for a PUE value of 1.36 and are therefore much more efficient than the average for Ger- man data centers, which lies at about 1.8. We are planning to reduce the PUE factor of our fixed-line network in Germany to 1.4 by the year 2020. For this value, we also forecast an additional reduction in the coming years. This will allow us in part to compensate for increasing energy requirements due to growing volumes of data and new features. ENERGY EFFICIENCY IN BUILDINGS Deutsche Telekom in Germany focuses its energy management efforts on energy savings. Accordingly, we continuously monitor and supervise all resources that require energy. Based on this data, we identify where there is potential for increasing efficiency. The goal of energy manage- ment is to minimize the primary demand for building electricity and heating energy. Sustainability aspects are crucial for the selection of future energy carriers. 1. Achieving these goals includes pursuing the following strategies: Through innovative location and office concepts, we are reducing vacancies and optimizing the use of space in our buildings. 2. We identify the need for reduction in energy consumption by using specific indicators such as “kilowatt hours per square meter” to com- pare similar facilities. We also carry out load profile analyses for individ- ual buildings to identify anomalies in their energy consumption. 3. Through communication measures, we want to raise awareness of energy consumption among our employees and motivate them to be energy-conscious in the workplace. The Deutsche Telekom subsidiary Power & Air Solution Management GmbH (PASM) procures energy for the German Deutsche Telekom Group companies. Its energy management system is certified according to the ISO 50001 international standard. In addition, Deutsche Telekom’s real estate holdings undergo an energy audit according to DIN standard 16247 every four years. Heating and hot water We regularly assess the need for repairs at our properties and conduct profitability analyses to further reduce consumption, concentrating on necessary and especially economic measures, such as: ƒ Energy optimization of heating systems (e.g., by replacing old burner technologies) ƒ Updating heat generators and related hydraulic components (such as pumps and valves) ƒ Using waste heat (e.g., by using heat recovery systems) ƒ Using combined heat and power generation (e.g., by combined heat and power units) ƒ Reducing supply losses when heating water (e.g., by switching to decentralized hot water supply) Electricity The supply infrastructure of office buildings accounts for the biggest share of building electricity consumption (e.g., pumps, ventilation and cooling systems, building automation systems, elevators, and lighting). To reduce electricity consumption, we are focusing our measures on the following areas:

ENVIRONMENT RENEWABLE ENERGY 72 Share of renewable energy in the total electricity consumption (in %) RENEWABLE ENERGY OUR APPROACH FOR MORE RENEWABLE ENERGY Renewable energies are an important element in avoiding greenhouse gases: By 2021, we want to obtain all of our electricity from renewable energies. To do that, we are sourcing more green electricity directly, acquiring corresponding guarantees of origin, or concluding power purchase agreements (PPAs), as is the case in the United States. When- ever possible and practicable, we invest in our own power plants – for instance in the construction of cogeneration plants and the installation of photovoltaic systems. We have been recording the “Renewable Energy” ESG KPI since 2016. In addition, we have developed parameters that apply Group-wide and let us assess electricity procurement at our national companies in terms of sustainability aspects in order to further increase the share of electric- ity from renewable sources in the future. Since 2019, we have also been testing alternatives for a climate-neutral power supply for mobile masts using fuel cells. They are economical, silent, low-maintenance, and, thanks to the use of bio-methanol, they are one thing in particular: carbon neutral. RENEWABLE ENERGY ESG KPI The Renewables ESG KPI is calculated based on the share of renewa- ble energy in the total electricity consumption. We are committed to increasing our reliance on renewable energy throughout the Group. The new climate protection target includes obtaining 100 percent of energy requirements from renewable sources. To this end, all national companies can purchase renewable energy directly as well as through certificates (guarantees of origin for electricity from renewable sources) if needed. In 2019, Deutsche Telekom obtained 64 percent of its electricity from renewable sources. The average share of electricity from renewable sources in the country mix across all countries where Deutsche Telekom is active was 31 per- cent. This was based on the supplier-specific electricity mix, the residual mix or the average country mix according to the U.S. Energy Information Administration, depending on the statistics available. The residual mix uses country-related residual factors (based on the RE-DISS project of the European Commission, which assessed the national share of renewables following subtraction of declared quantities of electricity). The share of renewable energy in the residual mix is typically lower than the share in the country mix. For Germany, the EEG surcharge paid is taken into account when calculating the share of renewable energy. The share of electricity obtained from renewable sources based on the country mix amounted to 24 percent (“remaining” country mix). b)

ENVIRONMENT MOBILITY 74 MOBILITY OUR STRATEGY FOR CLIMATE-FRIENDLY MOBILITY IN GERMANY Since 2008, we have been able to reduce CO2e emissions caused by our vehicle fleet by more than 40 percent or 74 kt CO2. Two factors were chiefly responsible for this: the increased use of CO2-optimized vehicles and reduced vehicle demand. Each year, our fleet shrinks by some 1,000 vehicles, as modern technologies allow us to make fewer service calls to our customers. The transition to climate-friendly mobility requires not only environmen- tally friendly drive systems (such as electric/natural gas) but also intelli- gent connectivity of all existing and new forms of mobility – for instance, we want to combine company and public transport on one digital plat- form for employees commuting between home and work. The key terms here are “sharing” and “Mobility as a Service” (MaaS). NUMBER OF VEHICLES The total number of vehicles at our company decreased year over year by around 1 percent.For detailed comments on the figures for each indi- vidual company, please refer to the interactive benchmarking tool. . To achieve our goal, we are pursuing a three-pillar mobility strategy: ƒ Improve: establish a more efficient and continuously sustainable fleet and integrate methods of micro-mobility (e.g., bicycles) The total number of our vehicles with alternative drive systems has more than doubled compared to the previous year. When purchasing com- pany and business vehicles, we continue to use alternative or low-con- sumption drive systems wherever economically feasible. ƒ Connected fleet: link existing and new mobility services, and expand digital pooling and sharing solutions ƒ Innovate: build an “MaaS” platform for Deutsche Telekom employees and develop additional supporting products and services Reporting against standards Logistics and transport are carried out by service providers at Deutsche Telekom. The environmental impacts of transportation are influenced by the contractual arrangements with service providers. This data is also relevant for criterion 11 (Usage of natural resources) of the German Sustainability Code. FUEL CONSUMPTION Overall fuel consumption fell by approximately 4 percent, and by 3 and 6 percent respectively for company cars and service vehicles. For detailed comments on the figures for each individual company, please refer to the interactive benchmarking tool. Last year, we were able to significantly increase the number of alterna- tive drives. We started regular operation of electric and eco-friendly natural gas vehicles, or are about to do so, for various fleet segments. Through our involvement in a nationwide funding project sponsored by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the Federal Ministry of Economics and Technology (BMWi), we will add further locations for electromobility in the next two years. We are working together on this with other units in the Group: ComfortCharge as the operator of the charging infrastruc- ture, the Deutsche Telekom field service as a partner for installation and support, and Get Charge as charging current and billing service provider. Nevertheless, the high acquisition costs of electric vehicles compared with combustion vehicles and the required charging infrastructure sig- nificantly limit their use. Despite subsidies and lower fuel and mainte- nance costs, the vehicles are still substantially more expensive than diesel or gasoline-powered vehicles. Also, the available range of models is still smaller compared to models with conservative drives.

ENVIRONMENT CIRCULAR ECONOMY & RESOURCE EFFICIENCY 76 CIRCULAR ECONOMY & RESOURCE EFFICIENCY OUR APPROACH TO RESOURCE CONSERVATION AND ENVIRONMENTAL PROTECTION facturing companies. The resource utilization for the manufacturing and use of our products and network infrastructure occurs in up- and down- stream stages of the value chain – with our suppliers and customers. This is why we are committed to the responsible handling of resources within our value chain. Here are the most important activities along our value chain: We reduce the use of plastic, paper, and packaging in key processes throughout the value chain. For example, we have halved the size of SIM cards, thereby saving 20.8 metric tons of plastic in the reporting year. It is planned to implement the half-size SIM card in all European national companies in the course of 2020. We promote the responsible use of raw materials among our suppliers and the reuse of materials. For example, we support cell phone collec- tion initiatives in various countries. With our health, safety, and environmental management system (HSE) we have made a commitment to continually improving our performance in these areas. The system is based on the international standards ISO 45001 on occupational health and safety, ISO 14001 on environmental management, and ISO 9001 on quality management. Ourenvironmental guidelinesummarizes all of the current voluntary commitments in effect throughout the Group. With the new Group-wide initiative “We care for our planet”, we are bun- dling existing and new projects for resource conservation under one new roof. The initiative strengthens the movement for more sustainabil- ity throughout the Group. Our Green Pioneers have already motivated employees at Deutsche Telekom AG to take part in numerous cam- paigns inside and outside Deutsche Telekom to make better use of resources. Resource efficiency is also a priority at the workplace. We regularly collect Group-wide data on the amount of waste we pro- duce. Our International Waste Management Framework guarantees standardized guidelines for all of our national companies. They are required to use this framework as a basis for identifying their own meas- urable targets and then monitor target achievement. This approach, coupled with the absence of quantitative specifications, gives us flexibil- ity when addressing the specific requirements of each country and company. The Take Back Mobile Devices ESG KPI measures the ratio of mobile phones in circulation to the number of used devices collected (exclud- ing T-Mobile US). We have also introduced a binding Group-wide guide- line with requirements for the recycling of copper cables, which are being partially replaced over the course of our fiber-optic roll-out. EMPLOYEE COMMUNITIES PROMOTE SUSTAINABILITY Green Pioneers (Telekom Germany): The internal “Green Pioneers” ambassador program was launched in September 2018. The aim of this grassroots initiative is to promote a fundamental shift toward more responsible management and conduct in all parts of the Group. There are now more than 200 employees at 40 locations and in more than 20 departments acting as Green Pioneers who specifically look out for improvement potential in their area of activity. The Corporate Responsibility department creates the framework condi- tions for the Green Pioneers. Its community management is responsible, among other things, for providing the initiative’s communication plat- form in the internal social network You and Me (YAM). Regular virtual and personal meetings allow users to exchange information and experi- ences, share knowledge through internal and external expert talks, and plan activities. Depending on their location, interests and expertise, the Green Pioneers come together to form thematic or regional “hubs”. Many Green Pioneers are active within the scope of flexible working methods, using them to establish modern work models ("80/20" and "Jobvisit") and gain new technical and methodological knowledge while strengthening Group-wide collaboration. The Green Pioneers act as internal multipliers for change: they motivate employees to be involved in numerous resource conservation cam- paigns, such as organizing an exchange for office supplies, clothing exchange campaigns, plant and waste collection campaigns, and an internal company ride-sharing agency. Numerous employee initiatives aimed at sustainability and environmen- tal protection are also active at the national companies of Deutsche Tel- ekom AG, as at the following companies, for example: T-Mobile Netherlands: In 2019 T-Mobile Netherlands has created a committed employee community to engage as many people as possible regarding recycling, efficiency and circular ambitions. Three teams have been set up: Climate & Energy, Circular business, and Sustainable Business Opera-

ENVIRONMENT CIRCULAR ECONOMY & RESOURCE EFFICIENCY 78 Reporting against standards By reporting on the use of discount season tickets, we partially cover the V04-13 (Percentage of services to reduce impact on climate) EFFAS indicator. This data is also relevant for criteria 2 (Implementation of the sustainability strategy) and 10 (Innovation and product management) of the German Sustainability Code. It is also used for reporting on the Global Compact principles 7 (Precautionary approach) and 8 (Promot- ing environmental responsibility). FURTHER RESOURCE PROTECTION MEASURES Print-on-Demand The advantage of the print-on-demand approach is obvious. Brief job- related instructions are printed on a daily basis and do not need to be produced in advance, transported, or stored. Changes to document templates are in use with the customer the very next day, which results in a far shorter response time and means out-of-date materials no longer need to be destroyed as was sometimes previously the case. The new concept has significantly reduced material usage, which is in keeping with the Deutsche Telekom goal of ensuring sustainable man- agement that conserves resources. Brief instructions for the Magenta- Zuhause rate plans marked the first step. In this initial project phase, paper consumption is already being reduced by 37.6 metric tons per year.The next step will be to investigate whether print on demand can also be used for other equipment documentation with particular specifi- cations (several sheets, brochure included, enclosure of SIM card, etc.). ƒ Reduction of paper consunption since project start: 140 t Paper ƒ Reduction of CO2 emissions since project start: 180 t CO2 RECUP returnable cup In 2018, Deutsche Telekom and Sodexo – the company running our canteens in Germany – joined forces to introduce the sustainable alter- native of RECUP returnable cups. A reusable RECUP can replace around 500 disposable cups and can then simply be recycled. In return for a deposit of 1 euro, our employees get their coffee in a reusable RECUP. This can be returned to any participating partner, where the deposit is returned and the RECUP rinsed and reused. The initiative started at the Deutsche Telekom sites of Stuttgart-Bad Cannstatt and Munich, Dachauer Strasse in November 2018. Many more sites were added in 2019, boosting the number of RECUPS by 115 % to more than 12,000 pieces.

ENVIRONMENT WASTE MANAGEMENT & RECYCLING 80 WASTE MANAGEMENT AND VOLUME Our waste management is organized according to uniform principles across the Group. The implementation lies in the responsibility of the national companies. On a Group level, we have not set a goal for the reduction of hazardous and non-hazardous waste. Instead, our national companies are developing their own waste strategies or updating their current strategies on the basis of our International Waste Management Framework, which we adopted in 2013. They are also setting their own targets, giving top priority to reducing hazardous waste such as lead batteries. Group-wide waste increased slightly by 15 percent compared to 2019. This increase is mainly due to the increase in technical waste. The quan- tities of technical waste fluctuate from year to year depending on pro- jects that are implemented irregularly. RECOVERED COPPER CABLES Copper cables were the main component of telephone lines for dec- ades. These are being partially replaced over the course of our fiber- optic roll-out. In 2016, we therefore introduced a Group-wide, manda- tory policy requiring copper cable recycling. This policy provides a guideline to our national companies when it comes to the recycling and disposal of used cables. In 2019, Deutsche Telekom removed around 7,900 metric tons of cop- per cable from duct systems in Germany alone. Due to intensified meas- ures, significantly more cables could be identified for recovery in 2019. The cable is processed in accordance with environmental standards at certified waste disposal facilities, and up to 90 percent of the material is recycled.

SOCIAL SOCIAL COMMITMENT 82 SOCIAL COMMITMENT OUR APPROACH TO SOCIAL RESPONSIBILITY The digital revolution is changing almost every area of our lives. We want to help allow all people to shape these changes in a positive, active, and equal way. In short, we want everyone to #TAKEPART. That’s why, as part of our social commitment, we are also working on breaking down barriers to digital participation. We believe there are three key factors for ensuring everyone can partici- pate in our digital society on equal terms – technical access to fast net- works, the affordability of equipment and services, and the ability to use digital media competently. ƒ Access: We are continuously expanding our network to enable technical access. ƒ Affordability: With different rates for every budget and our social rate, we are striving to make digital access affordable for everyone. ƒ Ability/Competent use of digital media: Internet users should have positive experiences and suffer no harm online. Data security and data protection are top priorities for us. It is also important for every- one to use media in a competent, responsible, and critical manner, and in line with basic democratic values. We are therefore commit- ted to media and democratic competence. By focusing on promoting digital participation, our social commitment correlates closely with our core business. We consider ourselves responsible not only for our products and our network, but also for ensuring that people can interact with them confidently. This allows us to put our expertise as a telecommunications provider to the best possible use for the benefit of society. As one of the major employers, part of our social responsibility in 2019 was to support refugees in their integration into the German labor market. In carrying out our social commitment, we not only implement our own projects and initiatives, but also encourage the volunteer efforts of our employees. In addition, we provide financial support, for example, by being involved as a sponsor and providing support in the area of disas- ter response. The national companies carry out independent regional initiatives. We also work closely across national borders when it comes to our social involvement and share experience and best practices. Close cooperation with social players such as NGOs, associations, and initiatives also plays an important role. Measuring success We use a set of KPIs to measure our success: ƒ The Community Investment ESG KPI reflects our social commitment in terms of financial, human, and material resources. ƒ The Beneficiaries ESG KPI measures the number of active contribu- tors as well as the target groups they reach. ƒ The Media Literacy ESG KPI highlights the percentage of projects and activities that help people use media proficiently. It is highly relevant to us, as it correlates closely with our core business. Our measures are based on the Sustainable Development Goals (SDGs) of the United Nations. We have listed the activities with which we are pursuing SDGs in an overview. PROMOTING MEDIA LITERACY AND DEMOCRATIC COMPETENCE We have made it our mission to promote the safe and competent use of digital media – and the ability to use them in line with basic democratic values. We are therefore advocating trust and opinion forming online through a variety of projects and initiatives. We also provide updates about the responsible and critical use of media on our Group website and in our sustainability magazine “We Care”. Our focus for 2019 was “digital democracy”: What benefits does the digital world offer for political participation and opinion forming? Where is democracy threatened by what happens on the internet – for instance, through open or veiled populism, hate speech, fake news, and the manipulation of public opinion? In 2019, we reached many thousands of people with snackable content, discussion rounds, and workshops on the topic of “digital democracy,” at IFA in Berlin, for instance. We aim to raise awareness and highlight alternative courses of action, for example, on the question of how to identify fake news and how to apply this knowledge when using social media. Teachtoday The Teachtoday initiative supports children, young people, parents, and grandparents as well as teaching professionals with hands-on tips and materials about safe, proficient media usage. It covers a wide range of issues from the areas of family, school, and recreation. The materials are available at www.teachtoday.de in seven languages (German, English, Croatian, Montenegrin, Polish, Romanian, and Hungarian). A media obstacle course also presents media use in a fun way. Topics such as play times, privacy, and cyberbullying are addressed at different stations.

SOCIAL SOCIAL COMMITMENT 84 Volunteer involvement is an important component of our training. That is why we organized a fundraising run this year focusing on the partici- pant’s health as well as on the topic of “volunteer involvement”. The par- ticipants had the opportunity to have their type assessed for the national bone marrow registry of the DKMS (German "Deutsche KnochenMark- Spenderdatei" or "German Bone Marrow Donor File"). Moreover, by tak- ing part in the run the participants supported the association Gesicht Zeigen! Für ein weltoffenes Deutschland e.V (“Show your face! For an open-minded Germany e.V”). BENEFICIARIES AND MEDIA LITERACY ESG KPIS The report comprises a set of three KPIs for calculating the impact of our social commitment. In addition to the Community Investment ESG KPI, we report the Beneficiaries and the Media Literacy ESG KPI here. Our activities are based on the methods employed by the London Benchmarking Group (LBG), which incorporate the aspects, "input," "output" and "impact".The Beneficiaries ESG KPI reflects the number of people who got involved in community activities and the number of people in the target group that participate in or benefited from such activities (e.g. media literacy trainings, DSL connection in schools and crisis helpline). Our ambition: increase KPIThe Media Literacy ESG KPI reflects the share of people we have reached through programs addressing this topic. This KPI establishes a direct correlation between these activities and our core business. The ESG KPI reached 41 percent by the end of 2019 and our aim is to achieve a share of 45 percent by 2020. ENGAGEMENT@TELEKOM We support the social commitment of our employees with our range of corporate volunteering opportunities. Through their commitment, they play a major role in strengthening social cohesion, broadening their own horizons, and boosting their social skills. This in turn has a positive impact on teamwork at the company. Our corporate citizenship program engagement@telekom pursues two aims – to support our employees’ current involvement and encourage them to find new ways to contribute to society. To that end, we give them opportunities to volunteer: they can get involved in a good cause on numerous Social Days, for example. One focus is on projects that promote media literacy, where employees help people better understand digital phenomena, thus laying the groundwork for participation in the digital world. In 2019, employees also intensified their commitment to the environment. Among other things, they started their own activities as part of the Green Pioneers program which helps us reach our Group targets – for example, to reduce CO2 emissions. JOINT COMMITMENT WITH PARTNERS We have taken on the task of driving forward the social discussion on digital responsibility. To do this, we participate in various alliances and partnerships such as the “Corporate Digital Responsibility” initiative run by the Federal Ministry of Justice and Consumer Protection. By signing the Charter of Digital Networking and through our involvement in its supporting association, we emphasize our commitment. We have longstanding partnerships with many organizations, associa- tions, and initiatives with whom we work as part of our social commit- ment, for example: ƒ With the Telefon Seelsorge crisis hotline, ƒ With the Nummer gegen Kummer youth counseling line, run by an association offering advice in conflict and crisis situations, ƒ With Aktion Deutschland Hilft ƒ With “Deutschland sicher im Netz e.V. (DsiN)” to support activities aimed at IT safety and data privacy (among other things, we support the “Digitale Nachbarschaft” (Digital Neighborhood) project, where volunteers provide tips and advice on digital opportunities and data security),

SOCIAL SOCIAL COMMITMENT 86 ƒ We also offer special rates to enable low-income customers and people with disabilities to make phone calls and surf the web at rea- sonable prices. More than one million customers in Germany take advantage of these special plans each year. REFUGEE AID: INTEGRATION INTO WORK, INTEGRATION INTO SOCIETY Deutsche Telekom’s commitment to refugees started in 2015 as a humanitarian aid task force with the following measures: Strengthening skills “Teachtoday” is part of our initiative “Media, sure! But secure.” focused on promoting safe, proficient media use for children and young people, parents and teaching professionals and offers practical and everyday tips and materials. One example is the free children’s magazine “Scroller”. The children’s media magazine published by Deutsche Telekom’s Teachtoday initiative addresses important issues related to learning with digital media and encourages children to help shape the digital world themselves. Our commitment also encompasses the following: ƒ “Code+Design Camps”: Young people attending these camps – who may or may not have any prior experience with programming – get to know new technologies and develop their skills under the guidance of professional mentors. ƒ We support the Digitale Nachbarschaft (Digital Neighborhood) project, which trains people to volunteer as IT ambassadors. ƒ We are involved in the Digital-Kompass (Digital Compass), which offers the association safe, straightforward, and free help to take advantage of digital opportunities. Workshops, manuals, webinars, and tutorials are offered. ƒ In partnership with BAGSO, the German National Association of Senior Citizens’ Organizations), we promote media literacy among older people and also support the “Goldener Internetpreis” (Golden Internet Award) for competent internet users age 60 and up. ƒ Along with four other foundations, the Deutsche Telekom Stiftung fosters the education and digitalization forum “Forum Bildung Digi- talisierung” that aims to improve education and equal opportunities using digital media. ƒ With #DABEI-Geschichten (#TAKEPART Stories), Deutsche Telekom invites users to address issues from the digital world in order to better understand them: from digital democracy and digital friendship to data protection and security – easy to understand, innovative, and full of tips! Suggestions and tips are offered for those working with learning groups. Documents are also available in simple language. The Deutsche Telekom Stiftung carries out numerous initiatives and projects that cover the full range of institutional education and utilize countless activities and programs to boost achievement in STEM sub- jects (science, technology, engineering, and mathematics). ƒ Free Wi-Fi hotspots in first aid facilities ƒ Deutsche Telekom buildings provided for use by the Federal Office for Migration and Refugees ƒ Deployment of staff at the Federal Office for Migration and Refugees ƒ Support for private volunteer work by employees In 2016, the first-aid initiative developed into the “Deutsche Telekom helps refugees” project, which aims to integrate refugees into the labor market. Promoting long-term integration In 2019, 450 positions were filled with refugees at Deutsche Telekom and partner companies – in the form of internships, as part of a training program, in the “Internship PLUS Direct Entry” program, or in perma- nent positions. 56 refugees who have previously completed a program at Deutsche Telekom were able to take up subsequent employment at Deutsche Telekom or a partner company of Deutsche Telekom. They will have, for example, switched to vocational training or a cooperative study program following an internship, or entered into permanent employment after their training. In 2019, the first participants also successfully completed the "Intern- ship PLUS Direct Entry" program. More than 70 percent of them switched to long-term follow-up employment. “Internship PLUS direct entry” is a program that was launched by Deutsche Telekom in 2016 in cooperation with the Federal Employment Agency, Deutsche Post DHL Group, and Henkel. A three to six-month orientation phase was followed by a two-year employment contract. In 2018, we continued and further developed the program for Deutsche Telekom. We created new jobs in areas with an especially high demand for staff, such as technical and customer service. The program will continue to run until 2021. In 2018, we received the “HR Excellence Award” for the “Internship PLUS direct entry” program for innovative flagship projects in human resources management in the Group Corporate Social Responsibility category. We also created internship positions for refugees in 2019 with the aim of providing them with their first step into the German working world. Many of these positions were awarded through applicant days, at which the focus was on getting to know each other, not on querying prior experience or looking at certificates. In 2019, Deutsche Telekom again supported its employees in their volunteer refugee work, for example, in cooperation with Volunteer Vision in the eStart program. At the end of the year, 150 Deutsche Telekom employees acted as language tutors to help refugees learn German.

SOCIAL EMPLOYEE RELATIONSHIPS 88 EMPLOYEE RELATIONSHIPS OUR APPROACH TO EMPLOYEE RELATIONS We pursue dialog-oriented employee relations throughout the Group and engage in trust-based, constructive collaboration with employee representatives and unions. The works councils, central works councils, and Group Works Council represent the interests of our employees at our Group in Germany. Our partner representing the employees’ interests on a European level is the European Works Council (EWC). We also have executive staff representation committees and disabled employee representatives at the unit, company, and Group levels. As the underlying laws and contracts vary from country to country, codetermination matters are managed locally together with trade unions and employees’ representatives. Group management is involved in all major issues as a matter of principle. We have set Group-wide standards for managing employee relations. These were formalized in our Guiding Principles and our Group’s Employee Relations Policy. You can find comprehensive information about conduct in relation to human rights at our Group in the Human rights section. EMPLOYEE RELATIONS POLICY The Employee Relations Policy, which has been rolled out throughout the Group, defines the core elements of Deutsche Telekom's human resources policy and describes what we stand for in our relationships to our employees around the globe. Our Employee Relations Policy addresses the following topics: ƒ Employee development ƒ Handling change responsibly ƒ Healthcare and sustainability ƒ Fair pay ƒ Achieving a good work-life balance ƒ Leadership ƒ Diversity ƒ Ban on discrimination ƒ Communication ƒ Collaboration with employee representatives We constantly monitor our Employee Relations Policy. Deutsche Telekom publishes reviews on the reports of our national companies on our Group portal under “Responsible Employer”. REVIEWED: EMPLOYEE RELATIONS AT OUR NATIONAL COMPANIES What progress have our national companies been making in implement- ing our Employee Relations Policy? We examine this issue by means of special reviews. Two to three national companies are subject to such a review each year. They use the results to further improve their relations with employees. The reviews also help us conduct a Group-wide assess- ment of employer/employee relations and any human rights risks involved in our business activities. If necessary, we formulate additional measures, including a “Human Rights Impact Assessment and Engagement”, a process for estimating the actual and potential effects of business activities on human rights. The process also assesses the ability of the organization to prevent, miti- gate, or eliminate these effects altogether. Since 2019, we have been holding local workshops to provide training on and raise awareness of human rights issues. In 2019, we conducted such an assessment at T-Systems India. In the reporting period, we also conducted employee relations policy reviews at T-Mobile Poland and Deutsche Telekom Außendienst GmbH. We publish the detailed results on our website. FLEXIBLE WORKING MODELS FOR A WIDE RANGE OF NEEDS AT DEUTSCHE TELEKOM IN GERMANY Designing work so that it is flexible and meets individual needs makes it easier for employees to achieve a good work-life balance, and prevent stress and the feeling of being overworked. That is why we encourage flexible working models. Our offer ranges from flexitime and part-time work to lifetime work accounts. Promoting part-time work Deutsche Telekom supports the establishment of part-time jobs and guarantees employees the possibility to return to their original working hours. In Germany, 13 percent of employees under collective agree- ments and 18.5 percent of civil servants took advantage of part-time models (as at December 31, 2019). In addition, a total of 29 executives throughout Germany were working part-time (as at December 31, 2019). Detailed information about our numerous part-time regulations is available here. Mobile working Mobile working is the normal state of affairs for us. The first mobile working collective agreement arranged between Deutsche Telekom and ver.di has been in effect since 2017. Among other things, it includes rules regarding telecommuting and mobile working. Part-time training for single parents Deutsche Telekom has been offering single mothers or fathers up to the age of 25 the opportunity to complete a part-time training program or

SOCIAL EMPLOYEE RELATIONSHIPS 90 SALARY DEVELOPMENT AT DEUTSCHE TELEKOM IN GERMANY In the 2018 collective bargaining round, the salaries of roughly 60,000 employees covered by collective agreements at Deutsche Telekom AG and in the Germany operating segment were raised in two stages by a total of 5.2 percent for employees in the lower pay groups and 4.8 percent for employees in the higher pay groups. The second salary increase took effect on May 1, 2019. The duration of collective wage agreements is mostly 26 months; they may be terminated for the first time at March 31, 2020. For the T-Systems segment, salaries rose in the first stage from January 1, 2019 by 3.0 percent in the lower pay groups and by 2.0 percent in the higher pay groups. A further salary increase of 2.5 percent will follow on January 1, 2020 for all T-Systems employees covered by collective agreements. The collective agreement is valid for a total of 33 months (Sunday, April 1, 2018 to Thursday, December 31, 2020). The salaries of trainees and cooperative degree students were raised by 30 euros in May 2019. Subsistence allowance for apprentices not living with their parents increased by 20 euros to €250. Harmonization of remuneration systems Together with the trade union, we succeeded in harmonizing the remu- neration systems in Germany as far as possible from 2018. For instance, non-sales was converted to a fixed annual salary effective January 1, 2019, eliminating variable remuneration. In addition, we achieved the goal of introducing global, uniform job descriptions from 2020, which will initially be used in Germany. This will help gradually establish new, market-oriented, and future-proof job descriptions throughout the Group. SALARY DEVELOPMENT AND REMUNERATION SYSTEMS AT T-SYSTEMS IN GERMANY In the course of the 2018 collective bargaining round, the salaries of roughly 20,000 employees covered by the collective agreement were raised in two stages by a total of 5.5 percent for the lower pay groups and 4.5 percent for the higher pay groups. After the first increase on January 1, 2019, the second increase took place on January 1, 2020. The new collective wage agreement has a term of 33 months and will expire on December 31, 2020. In 2019, we began to gradually harmonize regulations for variable remuneration at T-Systems as well. Non-sales will also be converted to a fixed annual salary in 2021. DIGITAL COLLABORATION The key to effective and transnational cooperation is simple, fast and virtual communication. Thus, the volume of online conference minutes has continued to grow steadily in 2019. DIALOG AND COOPERATION WITH EMPLOYEE REPRESENTATIVES We negotiated and adopted over 150 agreements in 2019 through constructive dialog with our works councils. Two key transformation projects we conducted in 2019 in close coordination with the works councils were the organizational measures “Technology & Innovation 2018” and “T-Systems Transformation”. In addition, 85 collective agreements were concluded with the union ver.di during the year. Apart from the collective bargaining agreements, the focus in 2019 was on concluding arrangements on harmonizing the Group’s remuneration systems as far as possible. Collective bargaining plays an important role and has a long tradition at our company. The percentage of employees covered by collective agreements is published in the non-financial statement in our Annual Report. Constructive dialog As the underlying laws and contracts vary from country to country, codetermination matters are managed locally with trade unions and employees’ representatives. Group management is involved in all major issues as a matter of principle. Information is available in the 2019 Annual Report. FAIR PAY AND BENEFITS We offer our employees competitive, performance-based pay oriented to the relevant national market. Our remuneration policies are struc- tured to guarantee equal pay for men and women and do not discrimi- nate. Executive compensation at Deutsche Telekom is based on our Group- wide Global Compensation Guideline. We also offer our employees additional benefits such as our company pension scheme. As part of our Group-wide employee survey, we regularly ascertain how satisfied our employees are with their pay and also conduct other sur- veys on specific topics and in specific units. In 2018, we compiled a report on equal pay and equality for the first time in order to comply with the new legal requirements of the Act to Promote Transparency of Pay Structures. It is published every five years. You can find the latest report as an annex to the 2017 management report.

SOCIAL EMPLOYEE SATISFACTION 92 Reporting against standards This data is relevant for criteria 7 (Control) and 14 (Employment Rights) of the German Sustainability Code. It is also used in our reporting on Global Compact Principles 3 (Freedom of association) and 6 (Elimination of discrimination). SATISFACTION AND COMMITMENT INDEX The Employee Satisfaction KPI has improved steadily in recent years. This is largely due to sets of measures which guarantee improvements right down to individual teams. We base this on the employee survey carried out every two years and monitor how effective these measures are through the half-yearly pulse survey. This allows us to continuously analyze and optimize our processes. It gives us the opportunity to continually improve employee satisfaction.

SOCIAL DIVERSITY 94 PERCENTAGE OF WOMEN IN TOTAL WORKFORCE In recent years, we have succeeded in maintaining the proportion of women in the total workforce at over a third and expect a slight upward trend in the future. PERCENTAGE OF WOMEN ON THE MANAGEMENT BOARD In 2019, as well, we continued pursuing the goal of achieving 30% women in management positions. Two of our nine board members are female. Deutsche Telekom is one of the few DAX Groups where women have been part of the Board of Management for several years now. In addi- tion, more and more women are working in international management teams below the Board of Management level. PERCENTAGE OF WOMEN IN MIDDLE AND UPPER MANAGEMENT In 2019, as well, we continued pursuing the goal of archiving 30% women in management positions. In Germany, the percentage of women in middle and upper management rose from 21.0 percent to 21.9 percent in 2019. Likewise, the figure for the entire Group increased and now stands at 26 percent. In the national companies outside Ger- many (excluding TMUS), the figure declined slightly due to a reduction in mandates and the deconsolidation of Albanian Mobile Communica- tions. You can find further information in the HR Factbook. Reporting against standards By reporting the percentage of women in middle and upper manage- ment, we fully cover the GRI 405-1 (Diversity of governance bodies and employees) GRI indicator and the S10-02 (Percentage of women in managerial positions) EFFAS indicator and partially cover the S10-01 (Percentage of women in total workforce) EFFAS indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sus- tainability Code. It is also used for reporting on the Global Compact principle 6 (Elimination of discrimination). You can find further information here and in the HR Factbook. Reporting against standards By reporting the percentage of women on the management board, we fully cover the GRI 405-1 (Diversity of governance bodies and employ- ees) GRI indicator and the S10-02 (Percentage of women in managerial positions) EFFAS indicator and partially cover the S10-01 (Percentage of women in total workforce) EFFAS indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sustainability Code. It is also used for reporting on the Global Compact principle 6 (Elimina- tion of discrimination). PERCENTAGE OF WOMEN ON THE SUPERVISORY BOARDS OF DEUTSCHE TELEKOM'S NATIONAL COMPANIES In the supervisory boards of our fully-consolidated European subsi- diaries, the percentage of women totals 25 percent (in Germany: 39.5 percent). You can find further information in the HR Factbook.

SOCIAL HUMAN RIGHTS 96 HUMAN RIGHTS OUR APPROACH TO PROTECTING HUMAN RIGHTS Deutsche Telekom has made an express commitment to the UN Guid- ing Principles on Business and Human Rights published by the United Nations Human Rights Council in 2011. These principles require busi- nesses to systematically identify the impact their operations have on human rights, and to prevent, mitigate or compensate these where necessary. In order to meet these requirements, we have developed an extensive program to implement the UN Guiding Principles and intro- duced an ongoing process comprised of several interconnected measures and tools (see diagram). 1. Mission statement on human rights The obligation to respect human rights, individual rights and freedom of opinion, to safeguard the right to collective agreements and to guaran- tee diversity and equal opportunity is anchored in the following basic policies of Deutsche Telekom: Guiding Principles Code of Human Rights & Social Principles Employee Relations Policy Diversity Policy 2. How we handle human rights complaints: We receive complaints about possible human rights violations at all times via the anonymous whistleblower portal “Tell me!” and our con- tact point for human rights, which has been in place since 2013. The contact point can be reached via the public email address human- rights@telekom.de. A complete overview of contact options can also be found on the “Tell me!” portal. We look into all tip-offs and reports received and introduce countermeasures as soon as the information is identified as plausible. You can find out how we handled the reports we received in 2019 here. In addition, human rights aspects have also been integrated since 2013 into due diligence activities conducted in the context of mergers and acquisitions. 3. Analysis of human rights risks and their potential impact: To review the potential impact of our business activities on human rights, we prepare a central Human Rights & Social Performance Report every year. In 2019, all 117 of the companies surveyed declared in this report that they comply with the Code of Human Rights & Social Princi- ples. The report indicated no violations for 2019. 4. Human rights and employee relations at our national companies: We also introduce special evaluation processes as required to assess employer-employee relations in the national companies with which we implement our Employee Relations Policy. In this context, we also take into account the results provided by our Human Rights & Employee Relations Cockpit. This is a tool to measure progress at our national companies on the basis of five indicators pertaining to human rights: Employee satisfaction (source: semi-annual pulse survey) Willingness to recommend Deutsche Telekom as an employer (source: semi-annual pulse survey) Health rate (source: HSE cockpit) Number of employees giving notice (source: HSE cockpit) Human rights risks at national companies (according to Maplecroft Human Rights Risk Index) The respective national company is classified according to a traffic light system for each key figure. The results are then discussed with the regional managers at the national companies and measures like human rights impact assessments and employee relations policy reviews are arranged as necessary. 5. Ensuring the effectiveness and adherence of human rights in the supply chain: We expressly require our suppliers to assume responsibility as a way of making sure human rights are also protected within our sphere of influ- ence outside of our Group. To this end, we supplemented our sustaina- ble procurement strategy with supplier management to improve our sus- tainability performance in our supply chain and ensure respect for human rights. Audits of our suppliers are one component, among oth- ers. Detailed results of our Group-wide auditing program are available here. 6. Raising awareness, training, stakeholder engagement, & networks: To ensure that human rights are safeguarded in accordance with our principles and our Code of Human Rights, we offer all employees world- wide online training courses on the subject of human rights. These are supplemented by internal communication campaigns with information about important aspects of the issue, such as anti-discrimination.

SOCIAL DEMOGRAPHY AND COMPANY PENSION SCHEME 98 DEMOGRAPHY AND COMPANY PENSION SCHEME AGE STRUCTURE AT THE DEUTSCHE TELEKOM GROUP The average age in the Group is 41.4 years. The average age in Ger- many is rising but is balanced out by the average age at international level (37.5 years). Reporting against standards By reporting on this data, we partially cover the GRI 405-1 (Diversity of governance bodies and employees) GRI indicator and fully cover the S03 -01 (Age structure/distribution) EFFAS indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sustainabil- ity Code. It is also used for reporting on the Global Compact principle 6 (Elimination of discrimination). COMPANY PENSION SCHEMES The increase in fund assets can be attributed to the payments of the increasing number of plan participants (as was the case in previous years). Because the majority of participants in the 2001 pension plan are still active, i.e., still paying into their retirement plans, this increase will remain steady over the next few years. Reporting against standards By reporting on this data, we partially cover the GRI 405-1 (Diversity of governance bodies and employees) GRI indicator and fully cover the S03 -01 (Age structure/distribution) EFFAS indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sustainabil- ity Code. It is also used for reporting on the Global Compact principle 6 (Elimination of discrimination). AGE STRUCTURE IN THE DEUTSCHE TELEKOM GROUP IN GERMANY Demographic shifts and low natural attrition explain why the proportion of employees over the age of 55 has risen from 15 to 22 percent in the past five years. The average age of employees in Germany rose to 46.5 years in 2019. One advantage is that this allows Deutsche Telekom to harvest the vast know-how of its many experienced employees.

SOCIAL TRAINING AND DEVELOPMENT 100 TRAINING AND DEVELOPMENT OUR APPROACH TO TRAINING AND DEVELOPMENT We offer employees of Deutsche Telekom a wide range of individual vocational training and development programs. The cornerstones for this are our Employee Relations Policy and the Guiding Principles. Ensuring employability We help the experts of tomorrow gain qualifications through our com- prehensive training and continued education offers in both the techni- cal and commercial fields. In 2019, we provided 2,150 training posi- tions throughout the Group, of which 1,450 apprenticeships, 675 open- ings for students on cooperative Bachelor’s degree courses, and 25 for students on cooperative Master’s degree courses. That makes us one of the largest training providers in Germany. We promote lifelong learning in all phases of employment and support our employees on their own individual learning path. To be able to iden- tify individual needs for development in a targeted manner and provide tailored offerings, we obtain an overview of our employees’ skills. We offer our employees a wide range of individual training and develop- ment options, such as work abroad or work/study programs. Under the Bologna@Telekom program, we have been giving employees the chance to participate in a part-time university program for ten years now – and gain qualifications ranging from Bachelor’s to Master’s degrees. A total of 1,800 employees have taken up this offer since it was launched 10 years ago. Digitals skills are the key to the future Our employees around the globe spent some 4 million hours on training and skills development in 2019, 46 percent of which was on digital offerings, which is 5 percent more than in 2018. Many of our courses can now be booked via the global Learning Management System (LMS). In 2019, digital courses accounted for 60 percent of the training which could be booked via the LMS. In 2019, Deutsche Telekom began mak- ing long-term changes in the learning culture at the Group. With the “youlearn” initiative, we are pursuing the goal of turning Deutsche Telekom into a learning organization. For this, the company is focusing increasingly on supporting everyday, self-directed learning with content that should also be more enjoyable. In 2019, “youlearn” launched new information portals for learning opportunities, an improved search func- tion, new digital learning content, and a new experience-based learning platform. In addition, a “Learning Challenge” motivates employees to participate in voluntary informal learning. One remarkable example of self-managed, autonomous learning is the employee initiative “Learning from Experts” launched in 2018: by the end of 2019, some 450 experts had shared their knowledge in brief, digital sequences with a commu- nity of almost 50,000 colleagues. Strengthening leadership skills in the digital age We also adapt our management development programs to the chal- lenges of the digital age. Since 2017, our extensive training catalog has included classroom teaching as well as entirely digital offerings. As a result, we not only strengthen leadership skills, but also virtual leadership abilities, and offer many opportunities to network. As part of our “Lead to win” performance and development process, our top-level managers receive feedback on their current performance profile and have an opportunity to address their needs for development. We have consistent tools for performance assessment in Germany in the shape of “Compass” for employees covered by collective agree- ments and civil servants, and the Performance & Potential Review for managers and employees not covered by collective agreements. The Performance & Potential Review is also used at many national companies. Agile transformation of Deutsche Telekom in Germany In Germany, we are boosting our use of agile methods in the fields of product and process development. The goal is to intensify our focus on the customer and speed up our delivery capability. To this end, we have more closely dovetailed the cooperation model for the business and IT segments. In addition, management has been sim- plified and an overarching business and IT architecture created to increase standardization of our products. The agile transformation at Telekom Deutschland is bolstered by a com- prehensive range of training and education programs. Along with typi- cal training courses on agile working, this includes four-month classes for specific role profiles such as “Product Owner” or “Scrum Master” as well as a leadership program for managers.

SOCIAL TRAINING AND DEVELOPMENT 102 levelUP! is designed to help managers tackle future challenges and facilitate their own development journey. The main aspect pursued in 2019 was to focus on leadership in an agile context. EMPLOYEE RECRUITMENT DEUTSCHE TELEKOM GROUP IN GERMANY In 2019, Deutsche Telekom hired almost 1,200 new employees from the external labor market in Germany. In addition, we gave around 1,300 internal junior staff permanent jobs on completion of their voca- tional training or cooperative study courses. A total of 8,300 employees were recruited outside Germany. You can find further information here and in the HR Factbook. APPRENTICES AND TRAINING PROGRAMS DEUTSCHE TELEKOM GROUP IN GERMANY In 2019, we recruited more than 5,900 junior employees for training or a cooperative degree program. More than 32% of them were women. The decrease on the previous year's figures is in line with the general employment trend at Deutsche Telekom. You can find further information here and in the HR Factbook. Employee recruitment Deutsche Telekom G You can find further information here and in the HR Factbook. Reporting against standards By reporting this data we partially cover the GRI 404-1 (Average hours of training per year per employee) GRI performance indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sus- tainability Code.

SOCIAL OCCUPATIONAL HEALTH AND SAFETY 104 Reporting against standards In combination with data on work-related accidents, the health rate data partially covers the GRI 403-2 (Types of injury and rates of injury, occu- pational diseases, lost days, and absenteeism, and number of work- related fatalities) GRI performance indicator. This data is also relevant for criterion 15 (Diversity and health) of the German Sustainability Code. WORK-RELATED ACCIDENTS IN GERMANY The number of work-related and commuting accidents was lower than in 2018. The accident rate is well below the average at comparable companies. Deutsche Telekom has a health and safety management system in place to reduce the number of work-related accidents. This certified system makes it possible to map the entire health and safety process and to develop sets of measures to further improve employee safety. You can find further information here and in the HR Factbook. Transformation programs such as “Shaping the future” at DT Technik GmbH not only lead to changes in the organization of the companies, but also alter the duties and ways of working. This can result in stressful situations for the employees. The focus of our psychosocial counseling services in 2019 was therefore on the impact of the transformation pro- grams. Another issue was the transformation into an agile organization. Various training modules were held for managers to prepare them for their changed leadership roles. Necessary restructuring activities also led to site closures during the reporting period. Employees often took the resulting change of location as an opportunity to take advantage of individual counseling. DIGITALIZATION AND HEALTH – JOINT PROJECT LAUNCHED WITH HEALTH INSURER BARMER In 2017, we launched a model project “Digitalization and Health” together with health insurer BARMER. With scientific support from the University of St. Gallen and the University of Cologne, among others, we are working on solutions to improve the health, motivation, and performance of employees in the context of digitalization. Deutsche Telekom is thus the first company to systematically tackle this range of topics together with a health insurer, in this case, BARMER. Over a period of three years, we will develop and evaluate different innovative apps, solutions, and measures that will undergo intensive field testing by Deutsche Telekom employees. In 2019, our employees also tested the “Digital Health Guide”, an online platform that helps employees select suitable health services and makes them easier use. Employees were also able to test an app called NutriAssist. It analyzes individual requirements for micronutrients such as vitamins, minerals, and omega fatty acids, and provides correspond- ing nutritional advice. The pilot project “Healthy and mindful leadership” was also launched in 2019. Its goal is to improve employee's digital health literacy. It is aimed at managers as important disseminators. Based on the results of the pilot projects, a decision will be made whether and how the programs will be used at Deutsche Telekom in the future. HEALTH RATE Nationally, the health rate for the Deutsche Telekom Group in 2019 showed a slight improvement of 0.4 percent year-on-year, and stood at an average of 94 percent (including the long-term sick). Musculoskeletal disorders, respiratory diseases, and mental health problems account for the bulk of illness-related absenteeism at Deutsche Telekom AG. The health rate is reported to the Board of Management at the end of each quarter. We aim to bring the Group-wide health rate up to 95.9 percent by 2020 (excluding long-term illnesses). Targeted health protection programs were implemented in the individ- ual companies. Across all segments, management training courses on the topic of “healthy leadership” were either introduced or continued. The aim is to raise managers’ awareness of this issue and train them accordingly. Additionally, a structured absence management system will be put in place to ensure that employees and managers regularly com- municate about illness-related absences so that appropriate action can be taken early on.

SOCIAL HEADCOUNT AND PART-TIME WORK 106 training to two and a half years and therefore apply for a job earlier than would have otherwise been possible. A success model all round, since Deutsche Telekom also benefits from the young people's commitment. Reporting against standards By reporting this data, we partially cover the GRI 102-8 (Information on employees and other workers) GRI indicator. PART-TIME EMPLOYEES DEUTSCHE TELEKOM GROUP IN GERMANY The percentage of part-time employees came to around 13 percent in 2019, and thus remained stable compared to the previous year. Reporting against standards By reporting this data, we partially cover the GRI 102-8 (Information on employees and other workers) GRI indicator. This data is also rele- vant for criteria 14 (Employee rights) and 15 (Diversity and health) of the German Sustainability Code. It is also used for reporting on the Global Compact principles 3 (Freedom of association and the right to collec- tive bargaining) and 6 (Elimination of discrimination).

SOCIAL FLUCTUATION & STAFF RESTRUCTURING 108 FLUCTUATION RATE The fluctuation rate in Germany increased slightly compared to 2018 and was 2.23%. Internationally, however, it has fallen compared with 2018. At Group level, it also increased slightly due to the increase in Germany and stood at 5.32% in 2019. Reporting against standards This data is relevant for criteria 6 (Rules and Processes) and 14 (Employment Rights) of the German Sustainability Code. PROPORTION OF CIVIL SERVANTS IN GROUP WORKFORCE The proportion of civil servants employed in the company fell once again in 2019. The reason for this is that Deutsche Telekom has not recruited any new civil servant staff since the company was privatized. In addition to civil servants leaving the company when they reach retire- ment age, others also took advantage of early retirement or moved to other agencies. This led to a continuous drop in the number of civil servants in our workforce. Reporting against standards In combination with additional headcount data, the data on the percent- age of civil servants in the workforce fully covers the GRI 401-1 (New employee hires and employee turnover) GRI indicator.

ABOUT THIS REPORT 110 ABOUT THIS REPORT “Act responsibly. Enable sustainability.” is the title of our 2019 CR Report. We chose this title to emphasize our commitment to sustainable activity along the entire value chain and to highlight the potential that our products and services hold when it comes to addressing environ- mental, economic, and social challenges. Deutsche Telekom has been involved in CR reporting for more than 20 years. Every year, in addition to our CR Report, we publish a non-finan- cial statement as part of our Annual Report. To identify the key reporting topics for our company and stakeholders, we have regularly carried out a comprehensive materiality process. Our reporting is supplemented by updates in the Corporate Responsibility section of our website and by our We Care magazine. NEW STRUCTURE In 2019, we restructured our CR Report to satisfy the requirements of modern-day CR reporting: ƒ On our homepage, we contribute to societal discourse by tapping into the latest societal debates and examining them from different perspectives in descriptive stories. This content is also available in simplified language. In addition, we keep users on our homepage up to date about important events and activities in short news arti- cles. ƒ Our new themed pages appeal to a wide readership, explaining our CR topics in clear, easy-to-understand language and taking readers through the four societal trends of “Good stewardship”, “New ways of working”, “Digital life”, and “Green future.” ƒ Users can find detailed information in the “Management & facts” section, in which we fulfill the requirements for conventional accountability reporting. Across the four pillars of Strategy, Busi- ness, Environment, and Social, we provide updates about the advances we have made in the reporting year by harnessing Deutsche Telekom’s sustainability management structure. By break- ing these pillars down into further subcategories, we are able to address topics in specific detail. With regard to key topics, “Our approach” additionally explains our management system. Our key performance indicators (KPIs) are set out in transparent detail. In our interactive KPI tool, users can also pick and choose indicators to create a customized compilation. Our “Management & facts” section is particularly targeted at CR experts and the capital market. ƒ The majority of our national companies whose CR activities are described in this report have their own profile page. The profile pages can be found under the “National companies” menu option. Some of our national companies also provide information about their CR efforts on their internet portals and in their own publica- tions. ƒ The report is supplemented by the “CR facts” format, which individ- ual Deutsche Telekom departments use to report directly on their sustainability-related projects and measures. Readers can directly access the “CR facts” section at any time by clicking the footer in the report. ƒ As in previous years, a download area, search and dialog functions, and an interactive KPI tool make it even easier to navigate the report. What’s more, the info cart lets readers select different con- tent and create a customized PDF file. SCOPE, REPORTING PERIOD, AND TARGET GROUPS The 2019 CR Report is a Group report that includes many national com- panies in which Deutsche Telekom holds a majority stake. It also follows up on the 2018 CR Report. All quantitative data, key performance indicators, and descriptions of key events and activities in the section detailing our progress under “Management & facts” refer to the 2019 year. Any deviations are marked accordingly. Our themed pages are designed to cover the latest social develop- ments, which is why they may be updated and extended throughout the year if necessary. The current report is specifically addressed to Deutsche Telekom stake- holders. These include analysts and investors, CR ranking and rating agencies, and NGOs as well as customers, employees, business part- ners, and representatives from the worlds of business, science, research, education, and politics. IMPLEMENTATION OF HIGH INTERNATIONAL REPORTING STANDARDS Deutsche Telekom’s 2019 CR Report complies with the internationally recognized guidelines (GRI Standards) of the Global Reporting Initiative (GRI). It also serves as a Communication on Progress (CoP) from Deutsche Telekom as part of the United Nations Global Compact. Deutsche Telekom also issues an annual, detailed Declaration of Con- formity with the German Sustainability Code.

IMPRINT IMPRINT Adress: Deutsche Telekom AG Friedrich-Ebert-Allee 140 53113 Bonn, Germany District Court of Bonn HRB 6794, Registered Office Bonn VAT ID No. DE 123475223 E-Mail: impressum [at] telekom.de Telefon: 0228/ 181-0 112 Concept/research/design/programming: Deutsche Telekom AG Stakeholder Reporting GmbH, Hamburg yoocon GmbH, Berlin 1000°DIGITAL GmbH, Leipzig Photos: Frank Bauer Pictureworld, Deutsche Telekom Contact: Please use our contact forms for questions about the company or products and services provided by our business areas. The 2019 CR Report is available in German and English. The English version of the CR Report is a translation of the German version of the CR Report. The German version of this CR Report is legally binding. Translated by DTAG Corporate Language Management. Authorized representatives: Timotheus Höttges Adel Al-Saleh Birgit Bohle Srinivasan Gopalan Dr. Christian P. Illek Thorsten Langheim Claudia Nemat Dr. Dirk Wössner Regulatory authority: Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway Tulpenfeld 4, 53113 Bonn, Germany Responsible: Deutsche Telekom AG Birgit Klesper Senior Vice President Group Transformational Change & Corporate Responsibility Friedrich-Ebert-Allee 140 53113 Bonn Further information on Deutsche Telekom's corporate responsibility activities can be found at: https://www.telekom.com/en/corporate-responsibility and https://report.telekom.com/annual-report-2019/

CORPORATE RESPONSIBILITY REPORT 2019 GRI-INDEX GLOBAL COMPACT COMMUNICATION ON PROGRESS

GRI-INDEX GENERAL STANDARD DISCLOSURES 3 Indicator Reference Ethics and integrity 102-16 Values, principles, standards and norms of behavior � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles 102-17 Internal and external procedures on ethical and lawful conduct and procedures for reporting concerns regarding non-ethical or unlawful conduct Checked Indicator Reference Checked � Management & facts > Strategy > Stakeholder management > Overview of memberships and collaborations We work with various feedback formats that are difficult to classify due to their variety. Because we have informal discussions with our stake- holders at dialog events, the feedback cannot be broken down accord- ing to the stakeholder groups. 102-43 Approach to Stakeholder Engagement � Management & facts > Strategy > Stakeholder management > � Management & facts > Strategy > Compliance > Holistic Formats for stakeholder engagement compliance management system � Management & facts > Strategy > Stakeholder management > � Management & facts > Strategy > Compliance > Systematic Overview of memberships and collaborations handling of infractions Governance 102-18 Governance structure We work with various feedback formats that are difficult to classify due to their variety. Because we have informal discussions with our stake- holders at dialog events, the feedback cannot be broken down accord- ing to the stakeholder groups. � Management & facts > Strategy > CR strategy & management > 102-44 Key topics and concerns raised by stakeholders Business activities and organization 102-19 Delegating authority � Management & facts > Strategy > CR strategy & management > Business activities and organization 102-20 Responsibility for sustainability topics � Management & facts > Strategy > CR strategy & management > Business activities and organization 102-24 Selection processes for the highest governance body and its committees All skills and abilities required and useful in effectively enacting the responsibilities of a position are taken into consideration during the selection process. The requirements of a position are identified using a skills list. The selection process is conducted by the Supervisory Board, which acts in the interests of stakeholders and shareholders. Stakeholder engagement 102-40 Stakeholder groups engaged � Management & facts > Strategy > Materiality > Material sustainabil- ity topics: systematic process Identified material aspects and boundaries 102-45 Entities included in the consolidated financial state- ments � www.telekom.com/worldwide 102-46 Defining report content and topic boundaries � Management & facts > Strategy > Materiality > Key issues for sustainable business development � Management & facts > Strategy > Materiality > Material sustainabil- ity topics: systematic process � Management & facts > Strategy > Materiality > Material topics matched with GRI aspects 102-47 List of Material Topics � Management & facts > Strategy > Materiality > Key issues for sustainable business development � Management & facts > Strategy > Materiality > Material topics � Management & facts > Strategy > Materiality > Material sustainabil- matched with GRI aspects ity topics: systematic process � Management & facts > Strategy > Stakeholder management > 102-48 Restatements of Information Formats for stakeholder engagement There was no cause to restate information within the reporting period. 102-41 Employees covered by collective bargaining agree- ments 102-49 Changes in Reporting Collective bargaining plays an important role and has a long tradition at our company, a fact made clear by the percentage of employees cov- ered by collective agreements. As of December 31, 2019, some 73.4 percent of employees in Germany were covered by collective agree- ments. Group-wide this number was 52.3 percent. 102-42 Identification and selection of stakeholders � Management & facts > Strategy > Stakeholder management > Formats for stakeholder engagement There were no changes in reporting in the reporting period. Report profile 102-50 Reporting period � About this report 102-51 Date of most recent report � About this report

GRI-INDEX SPECIFIC STANDARD DISCLOSURES 5 TOPIC-SPECIFIC STANDARDS Reference Indicator GRI 203: INDIRECT ECONOMIC IMPACTS GRI 103: Management Approach 103-1 103-2 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Economy > Network expansion > Our approach to infrastructure expansion 203-1 Infrastructure investments and services supported � Management & facts > Economy > Network expansion > Our approach to infrastructure expansion GRI 204: PROCUREMENT PRACTICES GRI 103: Management Approach 103-1 103-2 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Economy > Suppliers > Our approach to sustainable procurement � Management & facts > Economy > Suppliers > Supply chain man- agement � Management & facts > Economy > Suppliers > Responsible raw materials sourcing 204-1 Proportion of spending on local suppliers at significant locations of operation As an ICT company, Deutsche Telekom works with suppliers worldwide. That is why we do not have Group-wide policies giving priority to local suppliers at our locations. GRI 205: ANTI-CORRUPTION GRI 103: Management Approach 103-1 103-2 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Strategy > Compliance > Holistic compli- ance management system Checked Indicator Reference Checked 205-1 Total number and percentage of operations assessed for risks related to corruption and the significant risks identi- fied The following risks of corruption were identified as the most likely within the scope of our risk analysis: 1. 2. 3. 4. Acceptance of a benefit in connection with a specific business decision (e.g., a supplier invites an employee to a prestigious sports event, where there is a close material and temporal correla- tion between the event and the upcoming renewal of an existing agreement). An employee formulates selection criteria in favor of one supplier/ consultant. Procurement has no choice other than to include this supplier/consultant in its selection. Alternatively, an employee influences an auction/tender in favor of one bidder. In return, the employee receives a benefit from the supplier/consultant. An employee makes an agreement with a supplier to add 10 per- cent to a bill. The supplier pays half of the extra amount charged into a private bank account of the employee. A benefit is granted to a business partner’s employee or represent- ative in connection with a specific forthcoming business decision in order to gain an unfair competitive advantage (e.g., inviting a decision-maker on the customer side to a prestigious sports event in order to sway them into renewing the existing framework agree- ment that is coming up for renewal). 5. An employee awards a contract in return for something without first obtaining a comparative bid from a competitor, which repre- sents a breach of duty. It makes no difference whether or not the competitor’s bid would actually have been lower. Each year, we carry out a Group-wide compliance risk assessment (CRA) to determine compliance risks and develop tailored compliance measures. In 2019, the CRA included 80 companies and thus covered around 97 percent (based on the number of employees). 205-2 Communication and training on anti-corruption policies and procedures We use regular training measures to inform and raise awareness among our employees about compliance. In addition to classroom courses, we also use various interactive e-learning formats. In addition, customized classroom courses on compliance and anti-corruption are given to members of the management boards and executives. Managers are addressed about their extraordinary responsibility and informed about trends and changes in the law.

GRI-INDEX SPECIFIC STANDARD DISCLOSURES 7 Indicator Reference Checked Indicator Reference Checked 305-3 Other indirect GHG emissions (Scope 3) � Management & facts > Environment > CO emissions > Total 2 CO 2 emissions (Scope 3)  ational changes and involved according to the legally applicable provi- sions such as the German Works Constitution Act (Betriebsverfas- sungsgesetz). We also regularly engage in dialog with employee repre- sentatives at a national and European level. 305-5 Reduction of GHG emissions GRI 403: OCCUPATIONAL HEALTH AND SAFETY � Management & facts > Environment > Climate strategy � Management & facts > Environment > Our environmental program > GRI 103: Management Approach We care for our planet GRI 401: EMPLOYMENT GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Training and development > Our approach to training and development � Management & facts > Social > Fluctuation & staff restructuring > Staff restructuring in a socially responsible way � New way of working > New world of work page 401-1 New employee hires and employee turnover � Management & facts > Social > Headcount and part-time work > Development of headcount worldwide � Management & facts > Social > Fluctuation & staff restructuring > Staff churn rate � Management & facts > Social > Fluctuation & staff restructuring > Share of civil servants in the Group workforce � Management & facts > Social > Fluctuation & staff restructuring > Staff restructuring in a socially responsible way The number of employees entering retirement, an important component of natural employee churn, is not recorded within the scope of the annual workforce structure report. We therefore cannot provide a break- down of natural churn according to gender and age. The time and effort involved in more detailed data collection would exceed any insights gained. GRI 402: LABOR/MANAGEMENT RELATIONS GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Employee relationships > Our approach to employee relationships 402-1 Minimum notice periods regarding operational changes 103-1, 103-2, 103-3 Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Occupational health and safety > Our approach to health and occupational safety 403-1 Workers representation in formal joint management- worker health and safety committees We have created different steering levels at Deutsche Telekom in Ger- many to implement our occupational health and safety management activities. ƒ The first level is the Central Health Working Group, comprised of employer representatives from the Group and Group companies as well as employee representatives, occupational health and safety experts, and representatives of employees with disabilities. ƒ The second level comprises the Health Working Groups at Deutsche Telekom subsidiaries in Germany. ƒ The third level is comprised of local, on-site working groups respon- sible for implementing occupational health and safety management locally; there are at least 110 of these. The national companies are responsible for their own occupational health and safety management. However, all Deutsche Telekom employ- ees have gradually been included in a certified health, safety, and envi- ronmental management system based on the international standards ISO 45001 for occupational health and safety and ISO 14001 for envi- ronmental management that safeguards Group-wide standards. One hundred percent of our employees in Germany and 99 percent of our employees outside of Germany have occupational health and safety and environmental protection certificates (as at December 31, 2019). 403-2 Types of injury and rates of injury at the organization � Management & facts > Social > Occupational health and safety > Health rate � Management & facts > Social > Occupational health and safety > Work accidents in Germany This indicator cannot be used for Deutsche Telekom as a global corpo- ration because of the extensive effort involved in compiling all country- specific regulations, an effort that exceeds the benefit of such activities. The relevant works council committees are informed of significant oper-

GRI-INDEX SPECIFIC STANDARD DISCLOSURES 9 Indicator Reference 405-2 Ratio of basic salary and remuneration of women to men Checked Reference Indicator GRI 409: FORCED OR COMPULSORY LABOR Checked We have been comparing the pay of male and female employees for several years now. We were unable to identify any significant gender- based differences in pay for our employees in Germany. In the past, studies (e.g., Logib-D) confirmed that women and men who do the same job receive the same pay. It was not possible to record the pay of our male and female employees at all of our international locations due to data unavailability, relevance to competition, and the time and effort involved. GRI 406: NON-DISCRIMINATION GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Human rights > Our approach to protecting human rights � New way of working > Human rights > Human rights page 406-1 Incidents of discrimination and corrective actions taken � Management & facts > Social > Human rights > Human Rights & Social Performance Report GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Human rights > Our approach to protecting human rights � Management & facts > Social > Human rights > Code of Human Rights & Social Principles � Good stewardship > Supply Chain > Supply chain page � Management & facts > Economy > Suppliers > Our approach to sustainable procurement � Management & facts > Economy > Suppliers > Improving sustaina- bility in the supply chain 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor, and corrective actions taken Risks related to forced labor are combated by auditing selected strate- gic and particularly high-risk suppliers. No significant risk of forced or compulsory labor was identified at our direct business facilities. GRI 412: HUMAN RIGHTS ASSESSMENT � Management & facts > Social > Human rights > Information and GRI 103: Management Approach questions about human rights GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Human rights > Our approach to protecting human rights � New way of working > Human rights > Human rights page 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk, and corrective actions taken To our knowledge, there are no cases of this nature. Deutsche Telekom recognizes the fundamental right to freedom of association and the right to collective bargaining within the scope of national regulations and existing agreements. These principles form an integral part of the Code of Human Rights & Social Principles, are binding for the entire Group, and must be confirmed in writing annually by the Group compa- nies. We likewise expect our business partners and suppliers to comply with these principles as long as they do not contradict national legisla- tion. 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Social > Human rights > Our approach to protecting human rights � New way of working > Human rights > Human rights page 412-1 Operations that have been subject to human rights reviews or impact assessments � Management & facts > Social > Human rights > Our approach to protecting human rights � New way of working > Human rights > Human rights page GRI 414: SUPPLIER SOCIAL ASSESSMENT GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Good stewardship > Supply Chain > Supply chain page � Management & facts > Economy > Suppliers > Our approach to sustainable procurement � Management & facts > Economy > Suppliers > Supply chain management � Management & facts > Economy > Suppliers > 2019 audit results

GRI-INDEX FURTHER GRI ASPECTS REPORTED 11 FURTHER GRI ASPECTS REPORTED Reference Indicator GRI 201: ECONOMIC PERFORMANCE GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. Checked Indicator Reference Checked We comply with all legal requirements in all countries when disposing of hazardous waste. We are a service provider with low amounts of effluents as a result. We don’t collect data on effluents, as the amount of time and work involved could not be reasonably justified based on the benefit this would bring. GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT � Group profile > https://www.telekom.com/en/company/at-a-glance GRI 103: Management Approach 201-1 Direct economic value generated and distributed � Management & facts > Economy > Financial performance indica- tors > Net added value 201-3 Defined benefit plan obligations 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Economy > Suppliers > Our approach to sustainable procurement � Management & facts > Social > Demography and company pension � Management & facts > Economy > Suppliers > Supply chain scheme > Company pension schemes management � Management & facts > Economy > Suppliers > 2019 audit results GRI 306: EFFLUENTS AND WASTE GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Environment > Circular economy & resource efficiency > Our approach to resource conservation and environ- mental protection � Management & facts > Environment > Our environmental program > We care for our planet � Management & facts > Environment > Waste management & recycling > Waste reduction and recycling 306-2 Waste by type and disposal method Deutsche Telekom has a Group-wide waste management policy in place (e.g., for recycling copper) to handle the major types of waste pro- duced by its business activities. We also use our Used Mobile Device Collection ESG KPI to determine the relationship between the number of mobile devices such as smartphones and tablets brought to market and the number returned to us (returned mobile devices in thousands / number of mobile devices brought to market in millions). Functional devices are reused, which gives them a longer life span. Cell phones that are no longer functional are properly recycled in an environmentally friendly manner. Data collection regarding disposal methods is com- plex, and the amount of time and work involved could not be reasonably justified based on the benefit this type of data collection would bring. 308-1 Percentage of new suppliers that were screened using environmental criteria In 2019, compliance with social and environmental criteria was verified for 81 percent of our suppliers (Sustainable Procurement ESG KPI). This verification will also be carried out for all future suppliers. Of our 200 most important suppliers in terms of procurement volume, we verified compliance with sustainability criteria (CR-Qualified TOP 200 Suppliers ESG KPI) for 87 percent in 2019. In addition, 63 percent of our pur- chases from emission-intensive suppliers were covered by the CDP Sup- ply Chain Program (CDP Supply Chain Coverage ESG KPI) in 2019. 308-2 Significant actual and potential negative environmental impacts in the supply chain and actions taken � Management & facts > Economy > Suppliers > 2019 audit results GRI 408: CHILD LABOR GRI 103: Management Approach 103-1, 103-2, 103-3 Explain why the topic is material and pro- vide its boundary., Explain how the organization manages the topic., Explain how the organization evaluates the manage- ment approach. � Management & facts > Economy > Suppliers > Our approach to sustainable procurement � Management & facts > Economy > Suppliers > Supply chain management � Management & facts > Economy > Suppliers > 2019 audit results

GLOBAL COMPACT COMMUNICATION ON PROGRESS 13 GLOBAL COMPACT COMMUNICATION ON PROGRESS Principle 1: Support and respect for internationally proclaimed human rights Principle 3: Uphold freedom of association and the right to collective bargaining � Management & facts > Social > Human rights � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles � Management & facts > Strategy > Compliance � Management & facts > Economy > Data protection and data security � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles � Management & facts > Social > Employee relationships > Dialog and cooperation with employee representatives � Management & facts > Strategy > Compliance � Management & facts > Economy > Suppliers > Our approach for � Management & facts > Strategy > Political advocacy � Management & facts > Social > Human rights > Code of Human sustainable procurement � Management & facts > Economy > Suppliers > Supply chain Rights & Social Principles management � Management & facts > Social > Employee relationships > Fair pay � Management & facts > Economy > Suppliers > Auditing and benefits procedures � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Economy > Suppliers > Supply chain management � Management & facts > Economy > Suppliers > Auditing Principle 4: Elimination of all forms of forced and compulsory labor procedures � Management & facts > Economy > Consumer protection � Management & facts > Social > Occupational health and safety � Management & facts > Social > Diversity � 2019 Annual Report > Management report > Employees � 2019 Annual Report > Management report > Group strategy � 2019 Annual Report > Management report > Management of the Group Principle 2: No complicity in human rights abuses � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles � Management & facts > Strategy > Compliance � Management & facts > Strategy > Political advocacy � Management & facts > Economy > Consumer protection � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles � Management & facts > Strategy > Compliance � Management & facts > Strategy > Political advocacy � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Economy > Suppliers > Supply chain management � Management & facts > Economy > Suppliers > Auditing procedures Principle 5: Abolition of child labor � Management & facts > Strategy > CR strategy & management > Values and Guiding Principles � Management & facts > Strategy > Compliance � Management & facts > Strategy > Political advocacy � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Economy > Suppliers > Supply chain man- � Management & facts > Economy > Suppliers > Supply chain agement management � Management & facts > Economy > Suppliers > Auditing � Management & facts > Economy > Suppliers > procedures � Management & facts > Social > Human rights > Human Rights and Auditing procedures Social Performance Report

GLOBAL COMPACT COMMUNICATION ON PROGRESS 15 Principle 9: Encourage the development and diffusion of environmentally friendly technologies � Management & facts > Strategy > CR strategy & management > CR strategy � Management & facts > Strategy > CR strategy & management > Our management tools – the ESG key performance indicators � Management & facts > Strategy > CR strategy & management > Governance � Management & facts > Environment > Circular economy & resource efficiency > Our approach to resource conservation and environmental protection � Management & facts > Environment > Climate strategy � Management & facts > Environment > Our environmental program > We Care for our Planet � Management & facts > Environment > Circular economy & resource efficiency � Management & facts > Environment > Energy consumption & efficiency � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Economy > Suppliers > Supply chain management � Management & facts > Economy > Suppliers > Auditing procedures � Management & facts > Economy > Suppliers > Responsible procurement of raw materials � Annual Report 2019 > Management report > Innovation and product development Principle 10: Work against corruption in all its forms of, including extortion and bribery � Management & facts > Strategy > CR strategy & management > CR strategy � Management & facts > Strategy > Compliance � Management & facts > Strategy > CR strategy & management > Risk and opportunity management � Management & facts > Economy > Data protection and data secu- rity � Management & facts > Strategy > Political advocacy � Management & facts > Economy > Suppliers > Our approach for sustainable procurement � Management & facts > Economy > Suppliers > Supplier compliance � Management & facts > Economy > Suppliers > Auditing procedures � 2019 Annual Report > To our shareholders > Corporate Governance Report � 2019 Annual Report> Management Report > Risk and opportunity management