Money for Content Recent developments in the value chain Paris, Feb. 27th, 2013

T-Venture Story. Start-up strategy of DTAG.  Attractive return on invested capital  Innovative services and products of T-Venture’s portfolio companies will leverage DT’s performance  Access to the latest technologies in the ecosystem  Transformation of high-tech innovation  Positioning of DTAG for possible M & A transactions IP Communication IT Cloud Intelligent Networks Mobile Commerce Advertising

Third fund generation since T-Venture status: Successful deal history, excellent networks and deeply embedded in Deutsche Telekom. 1. Fund-Generation  T-Venture Beteiligungs mbH (T-TVB 1-3)  Bonn-Innova  CT  INI Ventures  GTV 2. Fund-Generation  T-Online  T-Mobile  T-Systems  T-Com  T-Corporate 3. Fund-Generation  Deutsche Telekom Venture Funds (CLWF, T-Home, T-Mobile, T-Systems and Corporate Fund) Telekom Innovation Pool (TIP)  Products + Services  Processes + Infrastructure Vintage 1997 Fund size (EUR) 200m Successful exits: Vintage Fund size (EUR) 330m Successful exits: Vintage 2009 Fund size (EUR) 170m Successful exits: Vintage 2012 Fund size (EUR) Portfolio highlights: Vintage 2012 Fund size (EUR) 40m

Content distribution. Conceptual framework. Content Segments  Digital Content  Health  Education  Government  Entertainment  Infotainment Technologies/Trends  Infrastructures (Access, Mobile, LTE, Security, DRM, Backup…)  Smart phones, Terminals etc.  Social Networks  Apps  Cloud (Storage, Functionality….) Business Models/Monetization  Paid content  Terminals/Hardware  Advertising/donations  Software  Infrastructure (Network/Cloud)

Content distribution. Example health. IHE Based Health Infrastructure Overview.

Content distribution: Example mobile gaming value chain Conception Pre- Production Production Workorder Conception Workshop Prototypes Prototypes & Vision Paper NO YES First Playable Strategy Technical Proof Core Mechanic Proof Concept & Budget & First Playable Artistic Proof IMP NO YES FP Meeting IMP Alpha IMP Live Operations Live IMP FP Meeting Closed Beta Internal Beta Open Beta Release Game Development Game/Content Distribution Partners for coverage € € €  E-/m-Commerce  Advertising  Pay for content  Premium games  Freemium games  Advertising €

Content distribution: Example Education Current Technologies allow for cheap digitization of Content, barrier less distribution and a massive scaling in reach. This is changing the traditional model of Education and also adds a variety of monetization models to it. Nowadays Education is getting…  increasingly accessible as ‘basic’ content is free on the Internet.  more interactive, social and collaborative.  individually tailored as algorithms assess learning and adapt content accordingly.  location independent/ massively scaling with Ivy-League Content distributed by virtual Universities. …and applies a variety of monetization models  Donations  Advertising  Freemium / Subscription  Enrolment fees  Fees for assessment and certificates  Revenue sharing

Content distribution: Example localisation Mix of device and local content/apps to leverage local content Satkirit  Offer apps and services with useful local content for emerging markets  Preselection of various categories with local partners and governmental entities  Additional offers to what is already available via social networks and search engines. Luvo  Affordable mobile device (smartphone) with state of the art technology  Helps to get easy access to relevant content and services  Company is in stealth mode  Strong partners on the device and design as well as on the content side  Distribution partners for emerging markets with access to younger population  Basic mission: do good!

Summary: current trends facilitate content monetization  Stronger focus on local needs/demand  Partnering with various elements in the food chain required  Broader penetration of standards (IHE) to enable easier content communication Ubiquity  Trends in mobile network design and hardware will facilitate deployment  Social networks will enable content distribution and quality control Subsidisation  Infrastructure and terminals/devices  Software and advertising Paid content  Clear models about entertainment with stronger push in DRM/technologies  Funding for content production in those areas available Desiterata Price erosion  Infrastructure and devices are under price pressure and so enable easier access to content in various domains