When must you indicate?

Your answer is correct. According to German traffic rules, you must signal (indicate) when leaving a roundabout, not when entering it. The purpose of signaling when exiting is to inform other road users about your intended direction, helping to avoid confusion and possible accidents.

When entering, you do not signal because you are giving way to vehicles already in the roundabout. Signaling only upon exit lets others know your planned exit from the circular junction.

Remember this rule for future situations involving roundabouts: Always signal when you leave the roundabout to indicate your exit.