Germany’s Federal Ministry of Transport, Daimler and Deutsche Telekom have reached an agreement, to end the road toll arbitration proceedings. This settlement puts an end to a 14-year legal dispute regarding the delayed implementation of a system for the collection of road tolls for heavy trucks in Germany. The settlement amount totals around EUR 3.2 billion. It takes previous payments to the German state into account and includes a one-time final payment of EUR 550 million by Deutsche Telekom.
As the arbitral tribunal has not been able to reach a decision in 14 years and a decision is not expected in the foreseeable future, board members of Daimler and Deutsche Telekom and the transport minister met and in intensive negotiations were able to agree on terms for a settlement. The settlement now provides legal certainty for the companies and the German government.
Toll Collect, the reliable operator of Germany’s road toll system, has collected more than EUR 50 billion for the German state over the past years. Mid-year, the company will begin collecting tolls on an additional 40,000 kilometers of federal roads. Daimler and Deutsche Telekom each hold 45 percent of Toll Collect, with the remaining ten percent held by French company Cofiroute.
Thomas Kremer, Deutsche Telekom Board of Management member responsible for Data Privacy, Legal Affairs and Compliance, welcomed the agreement: “Deutsche Telekom examined the risks and opportunities associated with further pursuit of the arbitration process extensively, from both a legal and business perspective, and believes that the settlement is the best possible solution. A 14-year legal dispute will come to an end in fairness and respect. With this step, Deutsche Telekom continues in its pursuit to reduce the Group’s legal risks.”
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows, and personnel-related measures. They should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence Deutsche Telekom’s ability to achieve its objectives are the progress of its staff restructuring initiatives and other cost-saving measures, and the impact of other significant strategic, labor, or business initiatives, including acquisitions, dispositions, business combinations, and network upgrade and build-out initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on cost and revenue development. Further, an economic downturn in the markets, and changes in interest and currency exchange rates, may also have an impact on Deutsche Telekom’s business development and the availability of financing on favorable conditions. Changes to Deutsche Telekom’s expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect the results at the Group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, the actual performance may materially differ from the performance expressed or implied by forward-looking statements. There is no assurance that the estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents alternative performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net profit, free cash flow, gross debt, and net debt. These performance measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
About Deutsche Telekom: Company profile
Source Deutsche Telekom