Development of business at Deutsche Telekom AG.
Deutsche Telekom AG, which has various branch offices in the Federal Republic of Germany, prepares its annual financial statements in accordance with the principles of German GAAP, as specified in the German Commercial Code and the German Stock Corporation Act.
As the Headquarters of the Deutsche Telekom Group, we perform strategic and cross-segment management functions and provide services for other Group companies. The profits and losses of our subsidiaries and Group financing measures have a material effect on our financial position and results of operations. For Deutsche Telekom AG, the 2013 financial year was again marked by intense competitive and price pressure in the telecommunications industry, which was also reflected in the income and loss of its subsidiaries. Deutsche Telekom AG reported income after taxes for the 2013 financial year of EUR 2.8 billion. The development of business in the reporting year was influenced by a number of very different effects (e.g., the extension of early retirement arrangements until December 31, 2013, the transfer of the Scout24 group within the Group, the write-up of intangible assets), arising both from the Company’s own business and from income related to subsidiaries, associated and related companies.