Deutsche Telekom AG — Management Reports 2002

Nov 14, 2002

News Details

Ad-hoc | 14 November 2002 14:05

Deutsche Telekom AG english

Part 5 (and final part) of the ad hoc notification of Deutsche Telekom AG Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Part 5 (and final part) of the ad hoc notification of Deutsche Telekom AG end of ad-hoc-announcement (c)DGAP 14.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Part 5 (and final part) of the ad hoc notification of Deutsche Telekom AG Principal results of the strategic review The Board of Management and Supervisory Board of Deutsche Telekom have completed a strategic review of Deutsche Telekom’s future position and business options. The main results are: Reduction of net debt The extensive reduction of net debt is to be continued. Deutsche Telekom is aiming to achieve a level of net debt by the end of 2003 which equals to roughly three times the EBITDA expected for the full 2003 financial year. Based on target EBITDA of between EUR 16.7 billion and EUR 17.7 billion for 2003, Deutsche Telekom strives for a target corridor of EUR 49.5 billion to EUR 52.3 billion net debt. In order to achieve this target, Deutsche Telekom intends to withdraw from non- strategic business areas such as real estate, the remainder of the cable business and other shareholdings and business units. Deutsche Telekom aims to generate proceeds of between EUR 6.2 billion and EUR 8.5 billion from these sales. In addition, Deutsche Telekom intends to reduce its investments in property, plant and equipment and intangible assets in the 2003 financial year to between EUR 6.7 billion and EUR 7.7 billion. T-Mobile USA The target for reducing net debt can be achieved without the need for a sale or merger of T-Mobile USA. Regardless of this fact, Deutsche Telekom is keeping all strategic business possibilities on the U.S. market open. Dividend The Board of Management and the Supervisory Board will propose to the 2003 Shareholders’ Meeting that no dividend should be paid for the 2002 financial year. With the exception of historical information, the matters discussed in this release are forward looking statements that involve risks identified in filings with the US Securities and Exchange Commission End of ad hoc notification ——————————————————————————– WKN: 555750; ISIN: DE0005557508; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, Stuttgart und München; EUREX; London, Amsterdam, NASDAQ Europe, Virtex, New York (ADR), Tokio 141405 Nov 02