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Deutsche Telekom AG — Interim / Quarterly Report 2021
Aug 13, 2021
112_ir_2021-08-13_541cc3cd-199a-482e-a9aa-9c41723a98be.pdf
Interim / Quarterly Report
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INTERIM REPORT
for the half year ended June 30, 2021
DEUTSCHE TELEKOM INTERNATIONAL FINANCE B.V.
MAASTRICHT
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TABLE OF CONTENTS
Report of the directors
Report of the directors 3
Financial statements (unaudited)
- Statement of comprehensive profit and loss (unaudited) 6
- Statement of financial position (unaudited) 7
- Statement of changes in equity (unaudited) 8
- Statement of cash flows (unaudited) 9
- Notes to the financial statements (unaudited) 10
REPORT OF THE DIRECTORS
Directors' report
The Board of Management is pleased to present the semi-annual report and the semi-annual financial statements of Deutsche Telekom International Finance B.V. (the Company) as of June 30, 2021.
Review of financial position and result
The business activities of the Company for the six months that ended June 30, 2021 are adequately presented in the statement of financial position and the statement of comprehensive profit and loss. The course of business of the Company went in line with expectations of the management.
Business activities
On January 18, 2021 the Company redeemed a bond with a nominal amount of EUR 1,000,778,000 and two loans granted to Deutsche Telekom AG (DTAG) and Magyar Telekom (MT) with the same aggregate nominal amount were repaid to the Company.
On April 19, 2021 the Company redeemed a bond with a nominal amount of EUR 357,751,000 and a loan granted to DTAG with the same total nominal amount was repaid to the Company.
The Company made a semi-annual net profit of EUR 24,651,840.52 for the first half year of 2021 versus a semi-annual net profit of EUR 21,630,936.92 for the first half year of 2020.
Future business developments and financing
The management expects no new financing for the remainder of the year. Since derivatives are carried at fair value and the non-derivative instruments at amortized costs, the financial result under IFRS of the Company is expected to remain volatile. However, management expects net positive cash flow for the year ending December 31, 2021 as well as in each of the following years.
Events after the statement of financial position date
On July 27, 2021 the Company redeemed a bond with a nominal amount of EUR 350,000,000 and two loans granted to Deutsche Telekom AG (DTAG) and Magyar Telekom (MT) with the same aggregate nominal amount were repaid to the Company.
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Management representation
Management declares that, to the best of their knowledge, the semi-annual financial statements give a true and fair view of the assets, liabilities, financial position and results of the Company. The semi-annual management report includes a fair review of the development and performance of the business and the position of the Company.
Maastricht, 13 August 2021
The Managing Directors,
Markus Schäfer
Frans Roose
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FINANCIAL STATEMENTS (UNAUDITED)
Statement of comprehensive profit and loss (unaudited)
| Six months ended June 30, | ||
|---|---|---|
| thousands of € | 2021 | 2020 |
| Finance income (expense) | ||
| Interest income | 473.140 | 589.657 |
| Interest expense | (483.428) | (576.082) |
| Other financial income (expense) | 43.282 | 11.328 |
| Profit from financial activities | 32.994 | 24.903 |
| General and administrative expenses | (177) | (178) |
| Other operating income | 20 | 67 |
| Loss from operations | (157) | (111) |
| Profit before income taxes | 32.837 | 24.792 |
| Income taxes | (8.185) | (3.161) |
| Profit after income taxes | 24.652 | 21.631 |
| Other comprehensive income | - | - |
| Profit attributable to owners: | 24.652 | 21.631 |
| Total comprehensive profit (loss) attributable to the owners: | 24.652 | 21.631 |
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Statement of financial position (unaudited)
| thousands of € | 30.06.2021 | 31.12.2020 |
|---|---|---|
| Assets | ||
| Non-current assets | 24.760.535 | 25.603.950 |
| Financial assets | 24.760.535 | 25.603.950 |
| Current assets | 2.651.792 | 2.908.813 |
| Financial assets | 2.641.835 | 2.891.343 |
| Income tax receivable | 1.651 | - |
| Other assets | 13 | 3 |
| Cash and cash equivalents | 8.293 | 17.467 |
| Total Assets | 27.412.327 | 28.512.763 |
| Liabilities and shareholder's equity | ||
| Shareholder's equity | 211.987 | 198.754 |
| Issued Capital | 500 | 500 |
| Retained earnings | 186.835 | 255.797 |
| Net profit (loss) | 24.652 | (57.543) |
| Non-current liabilities | 24.568.089 | 25.431.985 |
| Financial liabilities | 24.502.033 | 25.372.889 |
| Deferred tax liability | 66.056 | 59.096 |
| Current liabilities | 2.632.251 | 2.882.024 |
| Financial liabilities | 2.632.061 | 2.881.388 |
| Income tax liability | 35 | 495 |
| Other liabilities | 155 | 141 |
| Liabilities | 27.200.340 | 28.314.009 |
| Total Liabilities and shareholder's equity | 27.412.327 | 28.512.763 |
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Statement of changes in equity (unaudited)
| thousands of € | Issued share | Retained earnings | Result for the year | Total |
|---|---|---|---|---|
| Balance as at January 1, 2020 | 500 | 264.096 | 1.599 | 266.195 |
| Movements | ||||
| Net result | (57.543) | (57.543) | ||
| Appropriation of result | 1.599 | (1.599) | - | |
| Transactions with owners | ||||
| Dividends paid | (9.898) | (9.898) | ||
| Balance as at December 31, 2020 | 500 | 255.797 | (57.543) | 198.754 |
| thousands of € | Issued share capital | Retained earnings | Result for the year | Total |
| --- | --- | --- | --- | --- |
| Balance as at January 1, 2021 | 500 | 255.797 | (57.543) | 198.754 |
| Movements | ||||
| Net result | 24.652 | 24.652 | ||
| Appropriation of result | (57.543) | 57.543 | - | |
| Transactions with owners | ||||
| Dividends paid | (11.419) | (11.419) | ||
| Balance as at June 30, 2021 | 500 | 186.835 | 24.652 | 211.987 |
Statement of cash flows (unaudited)
| thousands of € | Six months ended June 30, | |
|---|---|---|
| 2021 | 2020 | |
| Proceeds from repayments of loans | 1.358.529 | 5.295.962 |
| Interest received | 516.392 | 636.556 |
| Interest paid | (510.800) | (625.841) |
| Net interest received from derivatives | 14.200 | 15.277 |
| Guarantee fees paid | (14.007) | (16.958) |
| Net income tax paid | (3.345) | (3.697) |
| Others | (195) | (325) |
| Net cash generated from operating activities | 1.360.774 | 5.300.974 |
| Repayment of financial liabilities | (1.358.529) | (5.295.962) |
| Dividend payments | (11.419) | (9.898) |
| Net cash used in financing activities | (1.369.948) | (5.305.860) |
| Net increase (decrease) in cash and cash equivalents | (9.174) | (4.886) |
| Cash and cash equivalents, at the beginning of the period | 17.467 | 15.752 |
| Cash and cash equivalents, at the end of the period | 8.293 | 10.866 |
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10
Notes to the financial statements
General information
Deutsche Telekom International Finance B.V. (hereafter "the Company") is the financing company of Deutsche Telekom AG, Bonn, Germany (hereafter "DTAG"). Its principal activity consists of the issuance of debt instruments and the funding of Deutsche Telekom Group. The Company, with its statutory seat in Maastricht and which has its office at Stationsplein 8-K, 6221 BT Maastricht, the Netherlands, is a 100% subsidiary of DTAG, which is also the ultimate parent of the Company. The Company's financial statements are included in the consolidated financial statements of DTAG.
Basis of preparation
The single entity semi-annual accounts have been prepared in accordance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. It does not contain all the information that is required for the full year financial report and needs to be read in combination with the annual accounts 2020 of the Company, which have been prepared in accordance with IFRS. The principles applied in preparing the half yearly accounts of the Company are similar to those applied by drawing up the annual accounts 2020 of the Company.
Changes in accounting policies
There have not been any changes in accounting policies in the first half year of 2021.
Judgements and estimates
The Company exercises judgement in measuring and recognizing provisions. Judgement is necessary in assessing the likelihood that a liability will arise and to quantify the possible range of the final settlement. These estimates are subject to change as new information becomes available.
Regarding assumptions made for the calculation of fair values we refer to the section financial instruments under accounting policies on page 15 and 16 of the annual report for the year ended December 31, 2020.
Income taxes
Income tax expense is recognized based on management's best estimate of the effective income tax rate for the complete fiscal year. The estimated effective tax rate used for the year to June 30, 2021 is 25.0%.
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Dividends
The Shareholder's meeting on March 5, 2021 resolved to pay a dividend of EUR 11,418,614.07 in 2021 relating to the fiscal year ending December 31, 2020. The Company did pay a dividend of EUR 9,897,618.20 in 2020 relating to the fiscal year ending December 31, 2019.
Post statement of financial position events
On July 27, 2021 the Company redeemed a bond with a nominal amount of EUR 350,000,000 and two loans granted to Deutsche Telekom AG (DTAG) and Magyar Telekom (MT) with the same aggregate nominal amount were repaid to the Company.
No other events occurred since June 30, 2021, which would make the present financial position substantially different from that shown in the statement of financial position as that date, or which would require adjustment to or disclosure in the semi-annual financial statements.