We take responsibility.Corporate Responsibility at Deutsche TelekomSao Paulo March 2012.

Group profile and figures Deutsche Telekom.

EmployeesFacts and FiguresProductsCompany

Major factor in success:

�At december 31, 2011, the total headcount stood at about 240,000.

By the numbers

� In 2011, Deutsche Telekom reported revenue of EUR 58.6 billion (more than half was generated outside of Germany). Adjusted EBITDA totaled EUR 18.7 billion and free cash flow EUR 6.4 billion.

Our strengths

� Products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers.

Global Group

Deutsche Telekom is one of the world’s leading service companies in the telecommunications industry

Our definition of Corporate Responsibility.�

Corporate Responsibility combines the commitment of the company to promote sustainable development globally by

•focussing on economic, environ-mental and social objectives.

• cooperating and communicating

Ecology

• cooperating and communicating with internal and external stakeholders.

•and assuming the responsibility for corporate actions with the aim

of enhancing the company's competitiveness.

Social

EngagementFinance

Corporate responsibility

Deutsche Telekom’s vision. CEO‘s commitment. “Sustainability, whether

economic, ecological or social, is not an add-on. It is becoming increasingly significant for many investors and shareholders. Ecologically responsible business practice and actions, and better energy

René Obermann, CEO Deutsche Telekom AG, Annual General Meeting 2010

actions, and better energy efficiency are important areas of future business for us. And we ourselves need to be credible in these areas.”

Corporate Responsibility.Significant value contribution for Business and Society.

Improvement of image and reputation

Increase in the share value

The strategic focus of Corporate Responsibility activities contribute to raise Image and Reputation, grant the company from the society its “license to

operate” and to successfully position Deutsche Telekom in relation to its competitors

Society

Business

Risk provision/risk avoidance

Drivers of innovation

Cost reduction and resource efficiency

Risk provision/risk avoidance

Building confidence

Dialog with stakeholders

Win-win situation for company and society

CR of

Deutsche

Telekom

What can we do to enable people to be

part of our information and knowledge

society?

What can we do to enable ourselves

and our customers to effectively

contribute towards climate

protection?

CR Profiling Areas.Sharpening the CR profile by focusing on three CR fields of activity.

How can we support our customers and

employees in improving their quality of

life and work?

Being a major driving

force for sustainable

life and work.

Setting an example in the

integration of people in

the information society.

Being leaders on the

road to a

low carbon society.

Connected

life and workConnect the unconnected

Low carbon

society

CR profiling by focusing on 3 main fields of action. Based on societal and ecological requirements as well as stakeholder expectations

with regard to sustainable development

Contribution to “Connected life and work“

How can we support people in order to improve their quality of life and work?

Be a decisive force for sustainable life and work

� Secure the conditions for change in the worlds of work and life and create commendable Conceptions to improve confidence and acceptance

� Education, training, promoting young talent, diversity, demographic change,

Contribution to “Low carbon society”

How can we enable ourselves and our customers to make a contribution to climate protection?

Be a leader on the way to a “low carbon society“

� Reduce carbon dioxide emissions; improve energy efficiency and support the use of clean energy, decarbonize our own business;

� Support innovations for severing the link between power consumption and CO2

emissions; reduce dependency on energy

Contribution to “Connect the unconnected“

How can we enable people to participate in the information and knowledge society?

Set an example for the integration of people in the

information society

� Improve equal opportunities and integrate the disadvantaged

� Bridge the “digital divide“ through new

business models, projects and services

� More broadband for all

� User-friendly technology/usability

Co

ntr

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tion o

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eu

tsch

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ko

m

Objectives

Issues

Binding

requirementsPrerequisites for a successful CR profile: DT must meet all important legal and societal requirements that are requested from the company. This is obligatory for all

company units.

talent, diversity, demographic change, life and work balance etc.

� Service culture; e-learning

emissions; reduce dependency on energy costs

� Development of new products and services with lower impact on the environment

e.g. Green IT; SMART 2020; Climate Change Strategy; Green Car Policy; Efficient Networks

e.g. Children and youth aid project to enhance equal opportunities “Yes I can do it” - 40 Tsd.

Kids reached; 200 projects supported

Sustainable supply chain managementEnvironmental management systems

Socially responsible investments (SRI) Donations and social sponsoringSustainable product development

CR reporting (print/Internet) and KPIs Responsible corporate governance

Occupational health and safetyConsumer and data privacy Diversity

Co

ntr

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tion o

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eu

tsch

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ko

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Societal dimension

Profiling projects

Corporate citizenship

e.g. Corporate Volunteering; Bologna@telekom; Bodytel (Glucotel, Pressuretel, Weighttel)

Climate protection.Climate Change Strategy: Core Measures to Meet the 30% Target.

The most important measures are:

� Network infrastructure: transformation to all-IP technology

� Data centers: doubling of performance, increase of emissions by 70%

� Mobility DeTeFleet: reduction of fleet and green car policy (110g CO2/km – 2015)

Core measures to meet the 30 % target

1,057

1,471

Fixed Network

370

(35%)

1,471

743

(51%)

-28%

Emissions in kilotons of CO2

green car policy (110g CO2/km – 2015)� Mobility Group Travel Management:

carbonless rail travel, substitution of travelling by video, audio and Web conferences

� Buildings: reduction in building premises, energy optimization

Buildings

Mobility DeTeFleet

Mobility GTM

IT Equipment

Data Centers

Mobile Network

2020

167

(16%)

77

(7%)

79

(7%)

13

(1%)

195

(18%)

156

(15%)

(35%)

2008

216

(15%)

137

(9%)

95

(6%)

13

(1%)

115

(8%)

152

(10%)

Reduction

Emissions in kilotons of CO

*Including continued use of RECS for decarbonizing energy consumption in

Germany

SMART 2020 Message – ICT’s Enabling Effect, Measuring the Impact

ICT can support other industries in emission reductions. The global potential of ICT based emission reductions is around 15% of total global carbon emissions.

� This results in business concepts that are assessable for each of the five sectors that were identified (assessment according to CO2 reduction potential and economic attractiveness).

SMART2020 Germany Addendum - up to 25% CarbonReduction Potential by consequent use of ICT in Germany

85.4 Mt CO2e Smart logistics (e.g., intelligent traffic management, extensive

introduction of urban congestion charges)

Smart buildings 41.7 Mt CO2e (e.g., climate control systems in buildings)

Smart motors 26.4 Mt CO e (e.g., optimization of business processes,

Enabled by Supported by

this � The smart use of ICT solutions could reduce CO2 emissions in Germany by up to 25 % by the year 2020 – this

is equivalent to 207 metric megatons (Mt).

� The business value of these concepts is estimated at up to EUR 84 billion by the year 2020.

Smart motors 26.4 Mt CO2e (e.g., optimization of business processes,

variable frequency drives in industry)

Smart grid 23.4 Mt CO2e (e.g., load and capacity management for

electricity suppliers)

Dematerialization 16.3 Mt CO2e (e.g., downloading music and videos

instead of CD production, virtual conferences)

Conclusions:

Examples of sustainable customer solutions:

We systematically translate our CR fields of activity into innovative solutions for our customers.

�

customers.

Examples of devices.

Sinus A 201 Speedport

W 723 V

� Climate-neutral for a product service life of 5 years (certificates).

� The DECT ECO modereduces the transmissionpower by 99.9 % when thedevice is plugged in.

� 50 % greater energyefficiency compared to theprevious model (Sinus 200).

� Energy-efficient thanks to switched-mode power supply (SMPS) and circuit design.

Smart Metering.

Modern de-central distribution networks require more and more modern ICT systems and electronic

Smart Grid Concept

� Smart Grid pilot (incl. purchase optimization, demand side management, virtual power plant)

� T-City delivers the setting for an exclusive pilot (2,000 households) in testing smart grid

Cooperation Examples

� An online and wireless electricity metering system that enables private und business customers to monitor consumption on-time and to recognize saving potentials

� Consumption profile over days, weeks, months or years

� Identification of electricity “guzzlers”

� Energy saving plan, cost savings

� Energy supply rules by requirements and generation

� Customer: Local energy supplier

electronic components

households) in testing smart grid business modelsSource: ABB

Telepresence Systems.

� 65% non-verbal communication: With Telepresence the emotions of the other

participants in a meeting get visible.

� Use: Sending of Telepresence appointments via Outlook and the Meeting apears on

date on the phone in the room, there is no administrator necessary.

� Audio system: Normal sound volume with sterosopic sound effect.

� By the use of completly identical build conference rooms there is the feeling to share

one room.

� Integrated document camera enables sharing of documents.

� Saving of time, costs and carbon emissions.

eHealth

� Pilot project Home Care T-City

� Cardio Beat study, Partnership for the heart project (T-Mobile)

� Disease Management & Telemedicine for Diabetes

� Care management Programs with Health Insurances

Cooperation ExampleseHealth Concept

user

TV Set

bloodpressure monitor

physiciancomputer

mobile terminal

ClinicHome Environment

Internet

The tele-monitoring system is based on:The tele-monitoring system is based on:

� Regular weight measurements

� Taking the blood pressure and pulse

� Collected data is sent to the hospital automatically (bluetooth, set-top box)

Impacts:

� The patient receives optimal care, gets more flexibility and increased quality of life

� The social system saves money thanks to less or shorter hospitalizations

� The doctors can take care of a greater number of patients

� Customers: Health insurance companies, hospitals and physicians

� Today more than 100 patients are already participating.

Sustainable Procurement:

Commitment throughout the value chain.

�

Sustainable Procurement. Our responsibility spans across the entire value chain.Deutsche Telekom also exercises its influence on a global scale on the production conditions of its suppliers and sub-suppliers and is committed to fair labor conditions and high quality standards.

� Deutsche Telekom AG's procurement volume totaled approx. EUR 20 billion in 2010.

� Deutsche Telekom procured goods and � Deutsche Telekom procured goods and services from different countries, including several threshold and developing countries.

� Deutsche Telekom systematically manages the specific opportunities and risks inherent in the broad supplier and sub-supplier network by deploying a sustainable supplier management system throughout the Group.

� Management of social and environmental risk in the supplierchain, as well as the possibilities of gaining long-term advantages for the company.

� Suppliers must comply with common, unequivocally definedminimum standards (DT Social Charter, Conventions of theInternational Labor Organization (ILO), Global Compact, etc.).

� Compliance is checked regularly in a standardized auditprocess. Responsibility for this is borne by procurement andsustainability experts at DT.

In cases of non-compliance, effective measures are

Sustainable Supplier Management. Basic elements of the sustainable procurement strategy.

� In cases of non-compliance, effective measures arelaunched, one of which is the standard escalation process.

� Standardized assessment of relevant strategic suppliersbased on a GeSI questionnaire, which is supplied through E-TASC (Electronics Tool for Accountable Supply Chains).

� Information on the analysis of the questionnaire and itsresults is communicated to the relevant stakeholders.

Main points of reference

CR performance. High standards through external indicators and guidelines.

Guidelines (G3) of the Global Reporting Initiative (GRI)

Organization for Economic Co-operation and Development Guidelines for multinational companies

Ten principles of the United Nations Global Compact

Guidelines for multinational companies

International Organization for Standardization (ISO)Environment management systems

International Labour Organization (ILO) – Key job norms

Diversity, fairness, and esteem within the company

Socially Responsible Investment (SRI)

CR-Performance.Socially Responsible Investment at Deutsche Telekom.

15

12

15,1%

Proportion of Deutsche Telekom Shares related to Socially Responsible Investment (in %)

“Partial SRI”: 13,1%

2007 2008 20102009

6

3

0

9

app. 3%

13,1%

“Primary SRI”: 2%

2011

Source: Ipreo

DT Group Level Top Ratings as of 2011.

CARBON DISCLOSURE PROJECT