Review of the dependent company report
The Board of Management presented its dependent company report for the 2016 financial year to us in good time.
The external auditor audited the dependent company report and issued the following audit opinion:
“Based on the results of our statutory audit and our judgment we confirm that
1. The actual information included in the report is correct;
2. The Company’s compensation with respect to the legal transactions listed in the report was not inappropriately high.”
The external auditor submitted the audit report to us. The dependent company report and the associated audit report were made available to all members of the Supervisory Board in good time.
We reviewed the dependent company report of the Board of Management and the audit report of the external auditor.
Prior to the review and resolution by the Supervisory Board, the Audit Committee conducted a thorough review of the aforementioned documents. At its meeting on February 28, 2017, the Audit Committee asked the Board of Management to explain the details of the dependent company report. The members of the Board of Management also answered the committee members’ questions. Moreover, the external auditor, who also attended the meeting, reported on its audit, in particular its key audit areas and the significant results of its audit, and explained its audit report. The members of the Audit Committee acknowledged and critically reviewed the audit report and audit opinion, and discussed them, as well as the audit itself, with the external auditor. The review included questions about the nature and extent of the audit and about the audit findings. The Audit Committee satisfied itself that the audit and the audit report were compliant. In particular, its members had assured themselves that the audit report and the audit conducted by the independent auditor met the legal requirements. The Audit Committee recommended that we approve the results presented by the external auditor and, as the committee saw no grounds for objections to the Board of Management’s statement on the dependent company report, that we pass a corresponding resolution.
We performed the final review at our meeting on March 1, 2017, taking into account the resolution and the Audit Committee’s recommendation as well as the external auditor’s report. The members of the Board of Management also attended this meeting, explained the dependent company report, and answered our questions. The external auditor also attended this meeting and reported on its audit of the dependent company report and the main findings of its audit, explained its audit report, and answered our questions, in particular relating to the nature and extent of the audit of the dependent company report and the audit findings. Based on this and the report presented by the Audit Committee, we were satisfied that the audit of the dependent company report and the audit report were compliant. In particular, we were satisfied that the audit report and the audit conducted by the independent auditor met the legal requirements. We did not find any indications of discrepancies, incompleteness, or any other objections as part of our review. We were also satisfied that the group of dependent companies had been defined with due care and that the necessary systems had been put in place for recording legal transactions and measures subject to disclosure. We followed the Audit Committee’s recommendation and approved the result of the external auditor’s audit of the dependent company report. Based on the final result of our review of the dependent company report, we have no objections to the Board of Management’s statement on the dependent company report.
We would like to thank the members of the Board of Management, all of Deutsche Telekom’s employees and the works committees for their commitment and dedication in the 2016 financial year.
Bonn, March 1, 2017
The Supervisory Board
Prof. Dr. Ulrich Lehner