Options Risk Statement Potential Risk at Expiry & Options Limited Duration Risk Unlike owning or shorting a stock, employing any listed options strategy is by definition governed by a finite duration. The most severe risks associated with general options trading are total loss of capital invested and delivery/assignment risk, all of which can occur in a short period. Investor suitability The use of standardized options and other related derivatives instruments are considered unsuitable for many investors. Investors considering such strategies are encouraged to become familiar with the "Characteristics and Risks of Standardized Options" (an OCC authored white paper on options risks). U.S. investors should consult with a FINRA Registered Options Principal. For detailed information regarding the risks involved with investing in listed options: http://Awww.theocc.com/about/publications/character-risks.jsp Price objective basis & risk Deutsche Telekom (DTEGF / DTEGY, B-2-7, EUR17.42/US$19.45) Our price objective for DT is EUR18.0/sh (US$19.62) and is derived from our Sum-of- the-Parts analysis. Each business is valued via DCF (except MtM for TMUS and OTE } using a 7.0% WACC and 1.00% terminal growth rate for Domestic and Western Europe assets (and 8.0% WACC/1% term growth for Eastern Europe assets) and cross-checked using implied valuation multiple analysis. Our Domestic business valuation reflects DT's solid positioning in both fixed (FTTC rollout) and mobile (superior network quality, integrated business model). Upside risks to our PO are any asset sales (US, non-integrated assets in Austria or NL) and revenue upside from T-Home's TV push. Downside risks to our PO are higher than expected mobile impact coming from new Drillisch tariffs or failure to turnaround good US operational trends into more profitable revenue streams. Analyst Certification We, Benjamin Bowler, Clovis Couasnon and Frederic Boulan, CFA, hereby certify that the views e