Development of revenue and profits.

The statements in this section reflect the current views of our management. The following section explains the current main findings on changes to the development of revenue and profits in 2012 published in the 2011 combined management report. Other statements made therein remain valid. For additional information and recent changes in the economic situation, please refer to the section “The economic environment” in this interim Group management report. Readers are also referred to the Disclaimer at the end of this report.
Changes compared to the 2011 Annual Report.
As of July 1, 2012, Deutsche Telekom pooled its entire internal IT from the two operating segments Germany and Systems Solutions as well as Group Headquarters & Shared Services into one new organizational unit under the umbrella of the Systems Solutions operating segment. The earnings forecasts in the 2011 Annual Report for 2012 were based on a segment structure that did not yet include the pooling of IT activities. The relocation of IT activities does not affect revenue or adjusted EBITDA for the Group, since it is an internal change in the segment structure. For the Germany operating segment, we expect the relocation of IT activities to result in unchanged revenue and slightly higher adjusted EBITDA. The expected decrease in adjusted EBITDA in the Systems Solutions operating segment will be offset by the effect in the Germany operating segment and the changed consolidation of the service relationships between the operating segments at Group level. The pooling of internal IT activities within Systems Solutions is expected to increase the operating segment’s revenue which will also be eliminated at Group level.
In addition to the effects described, we also decided to step up our investments in customer retention and acquisition in the important mobile communications market in Germany, and thus to increase our market share. Following the restatement of the comparative period to reflect the pooling of IT activities and to take account of the Digital Services growth business, we thus expect a year-on-year decrease in adjusted EBITDA in the Germany operating segment for the 2012 full year on a like-for-like basis.
Expectations for Deutsche Telekom AG.
The contribution of T-Mobile USA to MetroPCS results in a write-down on the equity interest in T-Mobile USA held by the Deutsche Telekom AG subsidiary holding. This write-down will impact on Deutsche Telekom AG’s single-entity financial statements through the profit and loss transfer agreements. As a result, a net loss is now expected for the 2012 financial year. In operational terms, however, Deutsche Telekom AG continues to expect to generate a net income in the 2013 financial year. Retained earnings would ensure the dividend payment for the 2012 financial year.