Reconciliation of alternative performance measures

SPECIAL FACTORS

The following table presents a reconciliation of EBITDA, EBIT, and net profit/loss to the respective figures adjusted for special factors. Reconciliations are presented for the reporting period, the prior-year period, and the full 2016 financial year:

millions of €            
  EBITDA
H1 2017
EBIT
H1 2017
EBITDA
H1 2016
EBIT
H1 2016
EBITDA
FY 2016
EBIT
FY 2016
EBITDA/EBIT 11,949 5,601 12,364 6,071 22,544 9,164
Germany (154) (154) (537) (537) (910) (910)
Staff-related measures (91) (91) (499) (499) (854) (854)
Non-staff-related restructuring (10) (10) (25) (25) (38) (38)
Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0
Other (53) (53) (13) (13) (18) (18)
United States 0 0 311 311 406 406
Staff-related measures 0 0 (9) (9) (11) (11)
Non-staff-related restructuring 0 0 0 0 0 0
Effects of deconsolidations, disposals and acquisitions 0 0 320 320 417 417
Impairment losses 0 0 0
Other 0 0 0 0 0 0
Europe (45) (45) (35) (35) (93) (277)
Staff-related measures (24) (24) (41) (41) (100) (100)
Non-staff-related restructuring 0 0 (2) (2) (4) (4)
Effects of deconsolidations, disposals and acquisitions 0 0 7 7 25 25
Impairment losses 0 0 (184)
Other (21) (21) 0 0 (14) (14)
Systems Solutions (74) (76) (127) (127) (252) (276)
Staff-related measures (32) (32) (74) (74) (136) (136)
Non-staff-related restructuring (1) (1) (4) (4) (5) (5)
Effects of deconsolidations, disposals and acquisitions 0 0 0 0 0 0
Impairment losses 0 0
Other (41) (43) (49) (49) (111) (135)
Group development 742 742 2,555 2,555 2,547 2,132
Staff-related measures 5 5 (6) (6) (35) (35)
Non-staff-related restructuring (3) (3) 0 0 (3) (3)
Effects of deconsolidations, disposals and acquisitions 741 741 2,562 2,562 2,585 2,585
Impairment losses 0 0 (415)
Other 0 0 0 0 0 0
Group Headquarters & Group Services (15) (15) (423) (423) (574) (574)
Staff-related measures (44) (44) (283) (283) (502) (502)
Non-staff-related restructuring (8) (8) (33) (33) (31) (31)
Effects of deconsolidations, disposals and acquisitions 44 44 (68) (68) (11) (11)
Impairment losses 0 0 0
Other (7) (7) (39) (39) (29) (29)
Group reconciliation 0 0 0 0 (1) (1)
Staff-related measures 0 0 0 0 0 0
Non-staff-related restructuring 0 0 0 0 0 0
Effects of deconsolidations, disposals and acquisitions 0 0 0 0 (1) (1)
Other 0 0 0 0 0 0
Total special factors 454 452 1,744 1,744 1,124 501
EBITDA/EBIT (adjusted for special factors) 11,495 5,150 10,620 4,327 21,420 8,663
Profit (loss) from financial activities (adjusted for special factors)   (1,870)   (961)   (2,323)
Profit (loss) before income taxes (adjusted for special factors)   3,279   3,366   6,340
Income taxes (adjusted for special factors)   (753)   (1,006)   (1,858)
Profit (loss) (adjusted for special factors)   2,527   2,360   4,482
Profit (loss)
(adjusted for special factors) attributable to
           
Owners of the parent (net profit (loss)) (adjusted for special factors)   2,138   2,101   4,114
Non-controlling interests (adjusted for special factors)   389   259   368

GROSS AND NET DEBT

Deutsche Telekom considers net debt to be an important performance indicator for investors, analysts, and rating agencies.

millions of €          
  June 30, 2017 Dec. 31, 2016 Change Change % June 30, 2016
Financial liabilities (current) 10,351 14,422 (4,071) (28.2) % 12,570
Financial liabilities (non-current) 50,638 50,228 410 0.8 % 50,361
Financial liabilities 60,989 64,650 (3,661) (5.7) % 62,931
           
Accrued interest (655) (955) 300 31.4 % (813)
Other (886) (1,029) 143 13.9 % (1,299)
Gross debt 59,448 62,666 (3,218) (5.1) % 60,819
           
Cash and cash equivalents 2,441 7,747 (5,306) (68.5) % 7,207
Available-for-sale financial assets/
financial assets held for trading
7 10 (3) (30.0) % 99
Derivative financial assets 1,515 2,379 (864) (36.3) % 2,510
Other financial assets 236 2,571 (2,335) (90.8) % 2,311
           
Net debt 55,249 49,959 5,290 10.6 % 48,692

RECONCILIATION FOR THE CHANGE IN DISCLOSURE OF KEY FIGURES FOR THE PRIOR-YEAR COMPARATIVE PERIOD in the first half of 2017

millions of €                
  Total
revenue
Profit (loss)
from operations (EBIT)
EBITDA Adjusted
EBITDA
Depreciation and amortization Impairment losses Segment assets a Segment liabilities a
H1 2016/June 30, 2016
Presentation as of June 30, 2016 – as reported
               
Germany 10,858 1,956 3,868 4,405 (1,904) (8) 33,353 26,423
United States 16,012 1,777 4,391 4,080 (2,614) 68,349 49,791
Europe 6,186 703 1,978 2,024 (1,271) (4) 30,778 12,519
Systems Solutions 4,054 (69) 211 381 (280) 9,031 6,073
Group Headquarters & Group Services 1,055 1,703 1,962 (225) (248) (11) 42,628 50,502
Total 38,165 6,070 12,410 10,665 (6,317) (23) 184,139 145,308
Reconciliation (2,718) 1 (46) (45) 48 (1) (35,654) (35,668)
Group 35,447 6,071 12,364 10,620 (6,269) (24) 148,485 109,640
H1 2016/June 30, 2016
+/- Change in disclosure: Technology and Innovation Board department and group Development operating segment
               
Germany (135) (218) (276) (276) 58 (1,336) (829)
United States
Europe (628) 6 (114) (125) 120 (4,178) (1,528)
Systems Solutions (476) 58 (31) (74) 89 (1,569) (830)
Group Development 1,148 2,857 3,034 479 (177) 11,221 2,417
Group Headquarters & Group Services 636 (2,704) (2,621) (11) (83) (4,926) (19)
Total 545 (1) 651 (7) 7 (788) (789)
Reconciliation (545) 1 (651) 7 (7) 788 789
Group
H1 2016/June 30, 2016
= presentation as of June 30, 2017
               
Germany 10,723 1,738 3,592 4,129 (1,846) (8) 32,017 25,594
United States 16,012 1,777 4,391 4,080 (2,614) 68,349 49,791
Europe 5,558 709 1,864 1,899 (1,151) (4) 26,600 10,991
Systems Solutions 3,578 (11) 180 307 (191) 7,462 5,243
Group Development 1,148 2,857 3,034 479 (177) 11,221 2,417
Group Headquarters & Group Services 1,691 (1,001) (659) (236) (331) (11) 37,702 50,483
Total 38,710 6,069 13,061 10,658 (6,310) (23) 183,351 144,519
Reconciliation (3,263) 2 (697) (38) 41 (1) (34,866) (34,879)
Group 35,447 6,071 12,364 10,620 (6,269) (24) 148,485 109,640
 
a Figures relate to the reporting date December 31, 2016.