Financial position of Deutsche Telekom AG

In addition to shareholders’ equity, our financial position is mainly determined by noncurrent assets as well as by receivables from and payables to Group companies. Loans recognized under financial assets as well as receivables from and payables to affiliated companies primarily resulted from financing relationships between Deutsche Telekom AG and its subsidiaries.

The balance sheet total increased by EUR 5.1 billion year-on-year to EUR 122.0 billion.

The development of total assets was attributable in particular to the increase of EUR 5.6 billion in receivables and the increase of EUR 1.1 billion in other assets. By contrast, financial assets decreased by EUR 1.0 billion and cash and cash equivalents by EUR 0.3 billion.

Financial assets decreased year-on-year by EUR 1.0 billion, mainly as a result of loan repayments by T‑Mobile USA, Inc., Bellevue, in the amount of EUR 2.0 billion. The carrying amount was also reduced by the buy-back of own shares by DFMG Holding GmbH, Bonn, in the amount of EUR 0.5 billion and the sale of 89.9 % of the shares in Erste DFMG Deutsche Funkturm Vermögens-GmbH, Bonn, to DFMG Holding GmbH, Bonn, in the amount of EUR 0.2 billion. The write-down in the amount of EUR 0.2 billion on CTA Holding GmbH, Bonn, further reduced the carrying amount. The acquisition of around 21.2 million shares of T‑Mobile US, Inc., Bellevue, by SoftBank Group Corp., Tokyo, for a purchase price of EUR 2.2 billion had an increasing effect on financial assets.

The increase in receivables of EUR 5.6 billion year-on-year was primarily due to the EUR 5.4 billion increase in receivables from cash management resulting in particular from the intragroup purchase of shares by DFMG Holding GmbH, Bonn. The EUR 0.2 billion increase in financial receivables from affiliated companies, mainly as a result of short-term loans granted to OTE Plc., London, further increased receivables.

The increase of EUR 1.1 billion in other assets is primarily due to higher receivables from cash collateral paid in connection with derivative financial instruments. The change in receivables from collateral is mainly attributable to higher interest rates.

The development of total shareholders’ equity and liabilities was mainly influenced by the increase of EUR 2.4 billion in financial liabilities, of EUR 1.3 billion in remaining liabilities, and of EUR 0.8 billion in shareholders’ equity.

The increase in shareholders’ equity of EUR 0.8 billion was primarily attributable to income after taxes of EUR 4.0 billion in the 2022 financial year. The dividend payment of EUR 3.2 billion for the previous year had an offsetting effect.

Financial liabilities increased by EUR 2.4 billion to EUR 12.6 billion compared to the prior year, due in particular to the increase in commercial paper issued in the amount of EUR 2.3 billion.

Remaining liabilities increased by a total of EUR 1.3 billion year-on-year. Current liabilities from cash management rose by EUR 6.2 billion as a result of payments received by subsidiaries that were transferred to Deutsche Telekom AG in connection with the intragroup cash management system. By contrast, financial liabilities to affiliated companies decreased due to loan repayments to Deutsche Telekom International Finance B.V., Maastricht, in the amount of EUR 3.0 billion. Furthermore, liabilities from collateral were down by EUR 1.5 billion against the prior year. This change is mainly attributable to higher interest rates.

Net cash provided by operating activities decreased year-on-year by EUR 3.9 billion to EUR 4.8 billion. In addition to income after taxes of EUR 4.0 billion, which includes profit/loss from control and profit/loss transfer agreements and other income related to subsidiaries, associated and related companies, this item was primarily affected by the increase of EUR 0.8 billion in net debt in connection with the intragroup cash management system. This increase in turn was due mainly to cash proceeds from Deutsche Telekom Europe B.V., Maastricht, resulting from the sale of the shares in T‑Mobile Netherlands Holding B.V., The Hague. The funds drawn by DFMG Holding GmbH, Bonn, for the intragroup acquisition of own shares and the shares in Erste DFMG Deutsche Funkturm Vermögens-GmbH, Bonn, in particular had an offsetting effect. Net cash provided by/used for operating activities in the previous year had been impacted in particular by the rescheduling of current receivables from cash management to long-term loans at Telekom Deutschland GmbH, Bonn.

Net cash provided by/used for investing activities changed year-on-year by EUR 4.6 billion, resulting in net cash provided by investing activities of EUR 1.6 billion. This change was attributable in particular to cash inflows resulted from loan repayments by T‑Mobile USA, Inc., Bellevue, of EUR 2.0 billion, from the buy-back of own shares by DFMG Holding GmbH, Bonn, of EUR 1.1 billion, from the sale of shares in Erste DFMG Deutsche Funkturm Vermögens-GmbH, Bonn, of EUR 0.7 billion, and from interest received of EUR 0.6 billion. Cash outflows of EUR 2.2 billion for the acquisition of further shares in T‑Mobile US, Inc., Bellevue, and the increase in cash collateral of EUR 1.0 billion had an offsetting effect. In the previous year, loans granted to subsidiaries, in particular to Telekom Deutschland GmbH, Bonn, had mainly influenced the Company’s investing activities.

Net cash used for financing activities decreased by EUR 1.8 billion year-on-year to EUR 6.7 billion. Net cash used for financing activities primarily resulted from the payment of the dividend for the 2021 financial year of EUR 3.2 billion, from net repayments of financial liabilities in the amount of EUR 2.3 billion, of which EUR 1.5 billion is attributable to collateral received, and from interest paid of EUR 1.2 billion.

In all, this resulted in a decrease in cash and cash equivalents of EUR 292 million in the reporting year.