Development of business in the Group.

We have achieved and exceeded our guidance for adjusted EBITDA and free cash flow (before dividend payments and spectrum investment), respectively. We also fully delivered on the shareholder remuneration policy we announced for the 2010 to 2012 financial years with a proposed dividend of EUR 0.70 per no par value share carrying dividend rights and the share buy-back amounting to EUR 0.4 billion in 2010. With the investments we have made amounting to EUR 8.5 billion (excluding spectrum), we have pushed ahead with the broadband roll-out and invested in expanding the capacities of existing networks and in faster mobile networks. We have also acquired spectrum for EUR 1.3 billion, which will speed up our broadband roll-out. Despite the fact that competitive pressure in the telecommunications market continued to grow and regulatory intervention became more and more intense, leading to a further price erosion, we brought the 2010 financial year to a successful close on the basis of our Fix – Transform – Innovate strategy announced at the beginning of 2010 and practiced ever since.

Changes in the composition of the Group impacted heavily on the development of business in 2010. These effects were mainly attributable to the following issues:

OTE group. Hellenic Telecommunications Organization S.A. (OTE/OTE group) has been fully consolidated since February 2009 and was therefore not included in the consolidated income statement for the full 2009 financial year. The OTE group is presented in the Europe operating segment.

Everything Everywhere joint venture. On April 1, 2010, Deutsche Telekom and France Télécom S.A. merged T-Mobile UK and Orange UK to create a joint venture called Everything Everywhere in which the two companies hold equal shares of 50 percent. Since then, the assets and liabilities of T-Mobile UK have no longer been shown in the consolidated statement of financial position. Equally, T-Mobile UK’s income statement has no longer been included in the consolidated income statement since the same date. Instead, the joint venture is included in the consolidated statement of financial position under investments accounted for using the equity method. The share in the joint venture’s profit/loss is reported in the consolidated income statement under profit/loss from financial activities. The new joint venture is presented in the Europe operating segment.