34 Notes to the consolidated statement of cash flows Net cash from operating activities Net cash from operating activities increased by EUR 0.8 billion year-on-year to EUR 17.9 billion. Exchange rate effects adversely affected the positive business trend in the United States operating segment. During the reporting year, factoring agreements were concluded concerning monthly revolving sales of trade receivables. However they did not have a significant impact on net cash from operating activities in the reporting year. The effect from factoring agreements of EUR 0.3 billion had a positive effect in the prior year. A EUR 0.1 billion increase in income tax payments compared with the prior year also had a negative impact. The prior-year figure included a EUR 0.1 billion higher dividend payment from BT (totaling EUR 0.2 billion), while the profit of EUR 0.1 billion distributed by Toll Collect GmbH was a key component in the reporting year. A decrease of EUR 0.8 billion in net interest payments compared with the prior year, mainly due to the fact that T-Mobile US has increasingly been financed internally since 2017, and that refinancing terms continue to be favorable, had a positive effect on the trend in net cash from operating activities. Deutsche Telekom’s working capital measures are focused on improvements in the area of liabilities as well as in the management of receivables and inventories. However, they are not used for active liquidity management. The negative effect on the change in assets carried as working capital can be attributed to the acquisition of mobile devices in connection with the JUMP! On Demand business model and to the increase in trade receivables as a result of net customer additions in the United States, mainly from agreements under the Equipment Installment Plan (EIP). In addition, an increase in trade receivables in the Germany operating segment also had a negative effect on working capital. By contrast, working capital was positively impacted by the reduction of stock levels of new terminal equipment models introduced in the United States at the end of 2017. For further information on individual assets carried as working capital, please refer to Note 2 “Trade and other receivables”, and Note 4 “Inventories”. Liabilities carried as working capital decreased mainly as a result of the reduction in trade payables, especially in the United States. For further information, please refer to Note 13 “Trade and other payables”. (XLS:) Download Net cash used in investing activitiesmillions of € 2018 2017 2016 a EUR 2.0 billion of which relates to a cash deposit placed in the first half of 2016 for the U.S. spectrum auction concluded in April 2017. b Includes, in addition to the purchase price of EUR 260 million, inflows of cash and cash equivalents in the amount of EUR 2 million. c Includes, in addition to the purchase price of EUR 1,792 million, inflows of cash and cash equivalents in the amount of EUR 1 million. d Relates primarily to outflows of cash and cash equivalents in connection with the transfer of the stake in BT as plan assets to Deutsche Telekom Trust e.V. in March 2018. e In 2017, EUR 600 million of this related to the cash inflows from purchase price payments and EUR 72 million to outflows of cash and cash equivalents. f In 2017, EUR 201 million of this related to a payment received from BT in connection with a settlement agreement. Cash capex Germany operating segment (4,240) (4,214) (4,031) United States operating segment (4,661) (11,932) (5,855) Europe operating segment (1,887) (1,874) (2,600) Systems Solutions operating segment (462) (383) (402) Group Development operating segment (271) (290) (271) Group Headquarters & Group Services (1,078) (1,005) (936) Reconciliation 107 204 455 (12,492) (19,494) (13,640) Net cash flows for collateral deposited and hedging transactionsa (170) 1,390 (3,015) Cash inflows from the sale of shares in Scout24 AG 0 319 135 Cash outflows for the acquisition of the shares in Layer3 TVb (258) 0 0 Cash outflows for the acquisition of shares in UPC Austria GmbHc (1,791) 0 0 Proceeds from the disposal of property, plant and equipment, and intangible assets 525 400 364 Cash flows from the loss of control of subsidiaries and associatesd,e (67) 528 4 Allocation under contractual trust agreement (CTA) on pension commitments 0 0 (250) Reverse allocation under contractual trust agreement (CTA) on pension commitments 225 0 0 Payment in relation to settlement reached in Toll Collect arbitration proceedings (200) 0 0 Payment in relation to equity maintenance undertaking for Toll Collect GmbH (60) 0 0 Acquisition/sale of government bonds, net 0 5 2,873 Otherf (9) 38 (79) (14,297) (16,814) (13,608) Cash capex decreased by EUR 7.0 billion to EUR 12.5 billion. In the reporting year, mobile spectrum licenses were acquired for a total of EUR 0.3 billion, compared with a total of EUR 7.4 billion in the prior year. In both years, these payments related almost exclusively to the United States operating segment. Cash capex (excluding spectrum investment) was up EUR 0.1 billion year-on-year in the Europe operating segment due to the network upgrade/expansion. By contrast, in the United States operating segment, this item decreased by EUR 0.2 billion, primarily due to currency translation effects. Adjusted for exchange rate effects, and excluding capital expenditure on mobile spectrum licenses, cash capex was substantially higher than in the prior year. Interest payments (including capitalized interest) of EUR 3.6 billion (2017: EUR 4.0 billion, 2016: EUR 3.6 billion) were made in the 2018 financial year. Capitalized interest was reported within cash capex in net cash used in investing activities, together with the associated assets. (XLS:) Download Net cash used in financing activitiesmillions of € 2018 2017 2016 Repayment of bonds (4,604) (10,992) (3,255) Dividends (including to non-controlling interests) (3,254) (1,559) (1,596) Repayment of financial liabilities from financed capex and opex (260) (266) (225) Repayment of EIB loans (159) (374) (830) Net cash flows for collateral deposited and hedging transactions 244 39 605 Repayment of lease liabilities (1,174) (715) (374) Repayment of financial liabilities for media broadcasting rights (407) (259) (215) Cash deposits of the former EE joint venture, net 0 0 (220) Cash flows from continuing involvement factoring, net 31 1 (12) Loans taken out with the EIB 150 825 889 Promissory notes, net 201 317 (582) Secured loans 0 (1,863) 0 Issuance of bonds 7,824 10,189 8,631 Commercial paper, net (623) 735 (3,658) Overnight borrowings from banks 565 0 0 Cash inflows from transactions with non-controlling entities T-Mobile US stock options 3 18 26 Toll4Europe capital contributions 24 0 0 Other 2 0 0 29 18 26 Cash outflows from transactions with non-controlling entities T-Mobile US share buy-backs (997) (511) (112) Share buy-back program at OTE (94) 0 0 Acquisition of T-Mobile US shares (164) 0 0 Acquisition of OTE shares (285) 0 0 Other (17) (11) (2) (1,557) (522) (114) Other (265) (168) (392) (3,259) (4,594) (1,322) Non-cash transactions in the consolidated statement of cash flows In the 2018 financial year, Deutsche Telekom chose financing options totaling EUR 0.2 billion under which the payments for trade payables from operating and investing activities primarily become due at a later point in time by involving banks in the process (2017: EUR 0.3 billion). These payables will subsequently be recognized under financial liabilities in the statement of financial position. As soon as the payments have been made, they are disclosed under net cash used in/from financing activities. In 2018, Deutsche Telekom leased network equipment recognized as a finance lease for a total of EUR 1.0 billion (2017: EUR 1.0 billion) in particular in the United States operating segment. This lease is now also shown under financial liabilities in the statement of financial position. Future repayments of the liabilities will be recognized in net cash used in/from financing activities. Consideration for the acquisition of broadcasting rights will be paid by Deutsche Telekom in accordance with the terms of the contract on the date of its conclusion or spread over the term of the contract. Financial liabilities of EUR 0.3 billion were recognized in the 2018 financial year for future consideration for acquired broadcasting rights (2017: EUR 0.4 billion). As soon as the payments have been made, they are disclosed under net cash used in/from financing activities. In the United States operating segment, mobile devices amounting to EUR 0.9 billion (2017: EUR 1.0 billion) were recognized under property, plant and equipment in the reporting year. These relate to the terminal equipment lease model JUMP! On Demand at T-Mobile US under which customers do not purchase the device but lease it. The payments are presented under net cash from operating activities. Following the transfer of the financial stake in the BT Group to Deutsche Telekom Trust e.V. in the first quarter of 2018, a non-cash transfer of EUR 3.0 billion to plan assets was made in order to increase external capital funding; this reduced the provisions for pensions recognized in the statement of financial position. The carrying amounts of the financial liabilities disclosed in net cash used in/from financing activities, divided into carrying amount changes having and not having an effect on cash flows, developed as follows in the reporting year: (XLS:) Download millions of € Carrying amount changes having an effect on cash flows As of January 1, 2018 Of which: disclosed in net cash (used in) from financing activities Total carrying amount changes having an effect on cash flows Bonds and other securitized liabilities 45,453 45,453 2,595 Liabilities to banks 4,974 4,974 536 50,427 50,427 3,131 Finance lease liabilities 2,635 2,635 (1,174) Liabilities to non-banks from promissory notes 480 480 2 Liabilities with the right of creditors to priority repayment in the event of default 0 0 0 Other interest-bearing liabilities 1,598 1,013 (680) Other non-interest-bearing liabilities 1,443 4 3 Derivative financial liabilities 946 807 (5) 7,102 4,939 (1,854) FINANCIAL LIABILITIES 57,529 54,635 1,277 DERIVATIVE FINANCIAL ASSETS 1,317 287 250 (XLS:) Download millions of € Carrying amount changes not having an effect on cash flows Changes in the composition of the Group Currency translation Fair value Changes in carrying amount according to the effective interest method Other Total carrying amount changes not having an effect on cash flows Of which: disclosed in net cash (used in) from financing activities As of December 31, 2018 Bonds and other securitized liabilities 0 962 36 79 0 1,077 49,033 49,033 Liabilities to banks 0 51 18 32 0 101 4,968 5,710 0 1,013 54 111 0 1,178 54,001 54,743 Finance lease liabilities 4 70 0 0 989 1,063 2,471 2,471 Liabilities to non-banks from promissory notes 0 17 0 0 0 17 497 497 Liabilities with the right of creditors to priority repayment in the event of default 0 0 0 0 0 0 0 0 Other interest-bearing liabilities 145 9 0 41 631 826 1,447 1,878 Other non-interest-bearing liabilities 6 0 0 0 0 6 13 1,609 Derivative financial liabilities 0 0 0 (75) 0 (75) 727 1,077 155 96 0 (34) 1,620 1,837 5,156 7,532 FINANCIAL LIABILITIES 155 1,109 54 77 1,620 3,015 59,157 62,275 DERIVATIVE FINANCIAL ASSETS 0 0 0 3 0 3 34 870 Total carrying amount changes having an effect on cash flows disclosed in net cash used in/from financing activities of EUR 1.5 billion deviate from the net cash used in financing activities of EUR 3.3 billion due in particular to the dividend entitlements of Deutsche Telekom AG shareholders having an effect on cash flows and the T-Mobile US share buy-back program begun in December 2017. Other carrying amount changes not having an effect on cash flows mainly relate to additions to financial liabilities in connection with the recognition of leased network equipment of EUR 1.0 billion and of broadcasting rights of EUR 0.3 billion. This item also includes additions to financial liabilities of EUR 0.2 billion relating to selected financing options under which payments for trade payables become due at a later point in time by involving banks in the process. For further information, please refer to the section “Non-cash transactions in the consolidated statement of cash flows”.