Investment into IT Industry T-Systems Slovakia 19 10

Investment into IT Industry T-Systems Slovakia 19. 10. 2010 – Kosice Invest Conference Marian Tóth Head of CSS Infrastructure Operations T-Systems Slovakia s. r. o.

T-Systems International Business Unit of Deutsche Telekom Group § Deutsche Telekom is one of the world's leading service companies in the telecommunications industry. § Our strengths: The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. § In 2009, Deutsche Telekom reported revenue of EUR 64. 6 billion, of which more than half was generated outside of Germany. Adjusted EBITDA totaled EUR 20. 7 billion and free cash flow EUR 7 billion. § At June 30, 2010, the total headcount stood at about 251, 000 Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems International Global presence and worldwide delivery capability Europe Rest of world § Austria Belgium Czech Republic Denmark France Germany Hungary Italy Luxembourg Netherlands Poland Russia § Slovakia § Spain/Portugal Switzerland Turkey United Kingdom § § § § Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010 § § § Argentina Brazil Canada China Hong Kong Japan Malaysia Mexico Singapore South Africa United States

T-Systems International – facts and figures Unique combination of ICT (Information & Communication. Technology) Company § § Provision of ITC services for corporate customers No. 1 in Germany in the telecoms and IT sector European market leader in the automotive sector Around 45, 000 employees worldwide Finance § § Highlights Customers/partners – facts § § 400 corporate customers and multinational groups, as well as the public sector and the healthcare industry More than 50, 000 server units in operation Management of more than 1. 5 million workstations More than 1. 5 million SAP users Total revenue: around EUR 9. 2 billion in 2009 EBITDA : around EUR 590 million in 2009 § § Systems integration alliance with IT service provider, Cognizant Global hosting and storage services mega deals with many global or international corporations Strategic ICT partnership with Airbus (EADS) Major deal with MAN: International operation of data centers and networks Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia, s. r. o. Facts & Figures 1/2 § T-Systems Slovakia s. r. o. was founded in January 2006 as subsidiary of T-Systems International Gmb. H § delivers innovative technologies and in-depth industry knowledge to customers in over 20 countries § The special fields of T-Systems Slovakia include the support of Windows , Unix/Linux, Storage, NW , SAP, Middleware SW and customer applications § operates 24/7 service ensuring support for customer ICT infrastructure and applications throughout all of the world. § First employees started to work in T-Systems Slovakia in February 2006 § Today T-Systems Slovakia has got over 2000 employees Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems International & T-Systems Slovakia Biggest ICT provider in Europe T-Systems Slovakia The company was formally established Over 2000 employees 684 employees We reached 1000 employees 259 employees 28 th January 2006 2007 2008 Today Competence areas § § OSS (Unix, Linux, Windows, Data, Virtualization) SAP Basis 24/7 Monitoring support Engineering, Project management, QM § § Storage and data solutions NW (Vo. IP, Security, Managed LAN, Load balancing, …) Non-SAP Applications (Middleware, DB, …) 8/5 2 nd and 3 rd level support with 24/7 on-call duty Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia Challenges § Lack of ICT specialists § Brain drain after T-Systems came to Kosice § Universities not producing enough ICT graduates … Solution § Actively building partnership with academic institutions and Seeking for win-win cooperation for sustainable development. § Developing own ICT specialists through targeted and intensive education. § IT Academy design and implementation; a common program of Technical university, University P. J. Š. and T–Systems Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia IT Academy: The beginning of new approach § § § After evaluating ICT labor market possibilities and hidden potential in non-ICT students, we developed a system of qualification projects. Target group are people without formal ICT qualification, but interest and potential to learn. Concept was developed in partnership with universities. T-Systems IT Academy Summer Univers. ITy §Public summer project §For older students §First “checking of potential” IT Farm §Intensive 3 -month program §Organized internally §Participants are employed by T- Systems Evening Univers. ITy §Content is basic preparation for later specialization §Public project §For students §During school year Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia T-Systems Education Academy § Credited ICT courses defined by TSSK, offered to students of all TUKE faculties and other Universities TSSK Goal: § § § § TUKE Elfa (CISCO) To move ICT education where it belongs: from “industrial” to “academic soil” To contribute to the fulfillment of commitments and vision of Kosice IT Valley To improve the quality of educational programs at Kosice Universities To offer education required and needed by TSSK and ICT industry To improve the ICT labor market flexibility To expand the ICT labor market pool of candidates To shorten education period in TSSK and to shorten time to go productive Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

TSSK - ICT Specialists development IT-Academy: solving labor market gap § Intensive (re-)qualification program § Designed in 2006 and successfully running till today § Basic and advanced ICT preparation, fundament for later specialization § More than 700 FTEs hired through IT-Academy; additionally more than 300 students participated and are prepared for ICT labor market § Significant contribution to University curricula, aiming for T-Systems Slovakia long-term sustainability § Received HR Gold award from Slovak HR Association in 2008 (Project of the year) § Successfully replicated to Hungary and strong inspiration also for Malaysian sister companies Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia facilities Our new offices in CBC I (Cassovar Business Centre) Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia facilities Our future offices in CBC II 2012 CBC II Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia Corporate Social Responsibility § Deutsche Telekom commits itself to responsible conduct in terms of sustainability and strives to achieve a lasting balance between the financial, social and ecological impacts of its activities. § Deutsche Telekom actively promotes sustainable development of the economy and society. Deutsche Telekom has a particular responsibility as society places higher expectations on it than on its competitors. § The Group has committed itself to incorporating every aspect of sustainability into its corporate activities. Sustainable and responsible action is being embedded within the organization and implemented across the Group using binding regulations. § The company seeks active and intensive dialog with its stakeholders and conducts such dialogs openly and transparently. Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia Corporate Social Responsibility § Strong support of overal ICT education in Košice at universities. § Strong support of Košice IT Valley initiative and its goal to promote and develop ICT industry in the region. § Intensive education of employees and managers and bringing them to higher maturity level. § Our Guiding Principles are giving strong platform for our employees to become true social responsible citizens. Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Slovakia Lessons Learned…. § 2000 new jobs created in Košice within less than 5 years and still growing. § Strong contribution to developing ICT industry in the region. § Strong promotion of Košice as the ICT industry tower in Slovakia and Central and Eastern Europe. § Strong support of the ICT education in the region. § Significant contribution to the overall GDP of the region. § Unique Collaboration Model with Universities. …. Košice, THE Place for ICT Investors Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010

T-Systems Vision & Mission Our Vision T -Systems Slovakia is THE Partner for 1 st Class ICT Services International cooperation Development of employees Commitment T–Systems Slovakia delivers high quality & innovative ICT services to customers Value new ideas Respect and open communication Flexibility Kosice Invest // M. Toth, T-Systems Slovakia 19. 10. 2010