Dividends

Dividend policy

The Company's management board and the supervisory board intend to make suggestions for the distribution of dividend to the general shareholders' meeting taking into account: (i) the profit for the year; (ii) historical and forecasted free cash flow and liquidity; (iii) distributable reserves available; (iv) benchmarking against other telecommunications companies; (v) the current and expected leverage and financial condition of the Company; (vi) the general economic and business conditions; (vii) any applicable legal and regulatory requirements; and (viii) any other factors the management board and supervisory board may deem relevant. Our management board and supervisory board intend to maintain the Company's leverage ratio (calculated by dividing net financial debt by OIBDA) below 1.0x over the medium term (the "Target Leverage"). In order to assess compliance with the Target Leverage, net financial debt will be measured as interest-bearing financial liabilities less interest-bearing financial assets, cash and cash equivalents, taking into account the value of financial derivatives and hedge arrangements. According to its financing policy, the Company aims to: (i) refrain from paying dividends, distributing capital or capital reserves in cash or bying back shares, if the ratio of net financial debt/OIBDA materially and consistently exceeds the Target Leverage; and (ii) restrict the use of new debt to pay dividends, allowing it only if the ratio of net financial debt/OIBDA complies with the Target Leverage. The management board intends to maintain a high payout ratio in relation to free cash flow. With regards to the integration of the E-Plus Group, the management board and the supervisory board might also consider synergies expected to be realized in the near future when making a dividend proposal.

Dividend 2015

The Annual General Meeting of Telefónica Deutschland Holding AG, Munich, on 19 May 2016 decided to distribute a dividend of EUR 0.24 for each share entitled to dividends, this is in total EUR 713,893,193.32, for the financial year 2015.

Dividend 2014

The Annual General Meeting of Telefónica Deutschland Holding AG, Munich, on 12 May 2015 decided to distribute a dividend of EUR 0.24 for each share entitled to dividends, this is in total EUR 713,893,193.32, for the financial year 2014.

Dividend 2013

The Annual General Meeting of Telefónica Deutschland Holding AG, Munich, on May 20, 2014 decided to distribute a dividend of EUR 0.47 for each share entitled to dividends, this is in total EUR 524,964,338.00, for the financial year 2013.

Dividend 2012

The Annual General Meeting of Telefónica Deutschland Holding AG, Munich, on May 7, 2013 decided to distribute a dividend of EUR 0.45 for each share entitled to dividends, this is in total EUR 502,625,460.00, for the financial year 2012.