DGAP-Adhoc:Telefónica Deutschland Holding AG: Dividend proposal for 2013 of approx. 525 million Euro. January-September 2013 preliminary results show stable year-on-year free cash flow evolution despite decline in OIBDA and OIBDA margin

Telefónica Deutschland Holding AG / Key word(s): Dividend/Quarter Results 07.11.2013 07:30 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.

Dividend proposal for 2013 of approx. 525 million Euro. January-September 2013 preliminary results show stable year-on-year free cash flow evolution despite decline in OIBDA and OIBDA margin The management of Telefónica Deutschland Holding AG (the Company) has resolved today that it intends to propose to the next ordinary General Meeting a cash dividend for the financial year 2013 of approximately 525 million Euro, showing an increase versus the dividend for the financial year 2012. The Company today releases preliminary results for the January to September 2013 period, highlighting the strong conversion from operating results to Free Cash Flow which supports the proposed dividend. In a more competitive and dynamic German telecommunications market, the Company has experienced increasing pressure on revenues throughout the year 2013, especially from competition, regulation and changing customer communication behaviours. This, together with the increase of commercial investments to improve the tariff mix of the customer base, led to a 7.7% year-on-year OIBDA decline in the January-September 2013 period (-14.0% in the third quarter), with margins going down 0.6 p.p. year-on-year to 23.5% (-1.9 p.p. to 23.8% in the third quarter). The Company continues monitoring the mobile market place in the second half of 2013 and still sees a significant level of competition around smartphone 3G tariffs and device bundles. With a short-term focus on value maximisation in a transition year to the next technology cycle, the Company already anticipates the need to keep flexibility in the market through targeted investments and allocation of resources. As a result, full year 2013 OIBDA margin is expected to be at or below prior year's level. 07.11.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

Language: English Company: Telefónica Deutschland Holding AG Georg-Brauchle-Ring 23-25 80992 München Germany Phone: +49 (0)89 24 42 0 Fax: E-mail: Internet: www.telefonica.de ISIN: DE000A1J5RX9 WKN: A1J5RX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart TecDAX End of Announcement DGAP News-Service