Download Net revenue. Net revenue decreased slightly by 0.8 percent. This

58
overvieW of the 2012
financial year.
G 05
billions of €
70
65
60
55
50
45
40
35
30
25
20
62.4
0.8
58.7
58.2
2010
2011
2012
Net revenue.
Net revenue decreased slightly by 0.8 percent. This includes positive net exchange rate
effects of around EUR 1.1 billion, primarily from the translation of U.S. dollars into euros.
Operations were positively impacted by the development of television services and
mobile data revenues, particularly in connection with the marketing of smartphones.
Negative impacts on operations included declining revenues from voice telephony, price
changes imposed by regulatory authorities, and intense competitive pressure.
T-Mobile UK
G 06
Proportion of net revenue generated internationally.
The proportion of net revenue generated internationally increased to 55.7 percent
(compared with 55.1 percent in 2011). This was partly attributable to increases in
revenue due to exchange rate effects in our United States operating segment.
55.7 % International
44.3 % Domestic
G 07
billions of €
30
27
24
21
18
15
12
9
6
3
0
19.5
0.2
18.7
18.0
2010
2011
2012
Adjusted EBITDA.
We generated adjusted EBITDA of EUR 18.0 billion, achieving the corporate target
we originally communicated for the year.
Positive effects included the focus on high-value revenue in connection with
TV services and mobile data revenues (see Net revenue) and net exchange rate
effects of EUR 0.3 billion.
Negative effects included fixed-network lines lost to competitors, price changes imposed
by regulatory authorities, and special levies imposed in the wake of national austerity
programs. The negative effects were partially offset by our comprehensive cost management.
T-Mobile UK
G 08
Free cash flow (before dividend payments, spectrum investment). a
Free cash flow amounted to EUR 6.2 billion, exceeding the Company’s announced
corporate target of around EUR 6.0 billion.
billions of €
10
9
8
7
6
5
4
3
2
1
0
6.5
6.4
6.2
2010
2011
2012
a
And before PTC and AT&T transactions.
COMBINED MANAGEMENT REPORT
OVERVIEW OF THE 2012 FINANCIAL YEAR
59
For a more detailed explanation, please refer to the section
“Development of business in the Group,” PAGE 90 et seq.
G 09
billions of €
60
55
50
45
40
35
30
25
20
15
10
42.3
Dec. 31,
2010
40.1
36.9
Dec. 31, Dec. 31,
2011
2012
Net debt.
Net debt decreased by EUR 3.3 billion or 8.1 percent compared with the end of 2011
to EUR 36.9 billion.
Net debt was reduced by more than EUR 3 billion despite dividend payments including
to non-controlling interests (EUR 3.4 billion), effects in connection with the AT&T transaction
(EUR 0.5 billion), payments to external pension funds (EUR 0.8 billion), and the acquisition
of spectrum (EUR 0.4 billion).
A positive impact came from free cash flow (EUR 6.2 billion), the sale of the shares in
Telekom Srbija (EUR 0.4 billion), and the payment received in connection with the cell
tower deal between T-Mobile USA and Crown Castle (EUR 1.9 billion).
G 10
billions of €
4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)
1.7
0.6
2010
2011
(5.3)
Net profit/loss.
Net profit decreased by EUR 5.8 billion, resulting in a net loss of EUR 5.3 billion.
The impairment loss recognized on goodwill and assets of T-Mobile USA in particular
had a negative impact (approximately EUR 7.4 billion after taxes).
Adjusted net profit decreased from EUR 2.9 billion to EUR 2.5 billion, a year-on year
decline of EUR 0.3 billion.
2012
G 11
billions of €
60
55
50
45
40
35
30
25
20
15
10
43.0
39.9
30.5
Dec. 31,
2010
Shareholders’ equity.
Shareholders’ equity decreased by EUR 9.4 billion compared with the end of 2011.
The net loss of EUR 5.3 billion, the recognition of actuarial losses (EUR 1.3 billion
after taxes) directly in equity, and dividend payments including to non-controlling
interests (EUR 3.4 billion) reduced the level of shareholders’ equity.
Dec. 31, Dec. 31,
2011
2012
G 12
%
50
45
40
35
30
25
20
15
10
5
0
33.7
32.6
28.3
Dec. 31,
2010
Dec. 31, Dec. 31,
2012
2011
Equity ratio.
Despite the decrease in shareholders’ equity, the equity ratio remained within the
announced target range of between 25 and 35 percent.
Total assets decreased by 11.9 percent, mainly as a result of the asset impairments,
including on goodwill, at T-Mobile USA (around EUR 10.6 billion) and dividend
payments including to non-controlling interests (EUR 3.4 billion).