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 1.4 billion year-on-year to EUR 123.4 billion.

The development of total assets was attributable in particular to the increase of EUR 1.3 billion in cash and cash equivalents, the increase of EUR 0.7 billion in financial assets, and the increase of EUR 0.3 billion in other assets. By contrast, receivables decreased by EUR 0.8 billion and intangible assets by EUR 0.1 billion.

Financial assets increased year-on-year by EUR 0.7 billion, with EUR 0.4 billion of the increase resulting from the split-off of pension obligations and certain asset items from T‑Systems International GmbH, Frankfurt/Main, and EUR 0.3 billion resulting from a shareholder loan to GD Towers Holding GmbH, Münster.

At EUR 10.0 billion, receivables were down EUR 0.8 billion year-on-year, due mainly to a decrease of EUR 1.1 billion in receivables from cash management. This decline was attributable in particular to the repayment of the cash management balances with companies of the cell tower business in Germany. EUR 4.5 billion of the EUR 4.9 billion shareholder loan granted in this context was repaid by the buyers of the 51.0 % shares in GD Towers Holding GmbH, Münster. Receivables from cash management of EUR 3.7 billion from Deutsche Telekom Towers Holding GmbH, Bonn, which were largely attributable to the company’s profit transfer, had an offsetting effect.

The increase of EUR 0.3 billion in other assets is due primarily to higher receivables from collateral (cash securities in connection with hedging), which increased by EUR 0.2 billion. This change is attributable to normal fluctuations in market values. The EUR 0.1 billion higher receivables from accrued interest also contributed to this increase.

The development of total shareholders’ equity and liabilities was mainly influenced by the increase of EUR 5.7 billion in shareholders’ equity and of EUR 0.1 billion in accruals for pensions and similar obligations. The decline of EUR 3.2 billion in financial liabilities, of EUR 1.0 billion in remaining liabilities, and of EUR 0.2 billion in tax accruals had an offsetting effect.

The increase in shareholders’ equity of EUR 5.7 billion was primarily attributable to income after taxes of EUR 9.1 billion for the 2023 financial year and to an increase in additional paid-in capital of EUR 0.1 billion resulting from transfers of treasury shares in connection with stock-based compensation plans. The dividend payment of EUR 3.5 billion for the previous year had an offsetting effect.

The increase of EUR 0.1 billion in accruals for pensions and similar obligations was mainly attributable to the split-off of pension obligations in the amount of EUR 0.6 billion of T‑Systems International GmbH, Frankfurt/Main, which took effect retrospectively as of January 1, 2023. Payments of pension benefits of EUR 0.3 billion and a EUR 0.2 billion higher fair value of the plan assets offset against pension obligations had a reducing effect.

Financial liabilities decreased by EUR 3.2 billion year-on-year to EUR 9.4 billion, due primarily to a reduction in commercial paper in the amount of EUR 2.3 billion and to repayments of loans and bonds amounting to EUR 0.9 billion net.

The decrease in remaining liabilities of EUR 1.0 billion was attributable to a decline in liabilities from cash management of EUR 2.1 billion, in particular as a result of the capital repayment by Deutsche Telekom Europe B.V., Maastricht. This was offset by a EUR 1.0 billion increase in financial liabilities to affiliated companies. EUR 6.3 billion of this increase was from a loan taken out from Deutsche Telekom Towers Holding GmbH, Bonn, in the amount of the purchase price payment received for 51.0 % of the shares in GD Towers Holding GmbH, Münster. A decrease in financial liabilities due to loan repayments made to Deutsche Telekom International Finance B.V., Maastricht, in the amount of EUR 5.1 billion had an offsetting effect.

Net cash provided by operating activities increased by EUR 4.0 billion year-on-year to EUR 8.7 billion and was mainly influenced by income related to subsidiaries, associated and related companies and the change in intragroup cash management balances. The increase is due in particular to the repayment of receivables from cash management by DFMG Holding GmbH, Bonn, amounting to EUR 4.9 billion in connection with the sale of 51.0 % of the shares in GD Towers Holding GmbH, Münster. Net cash provided by operating activities in the previous year had been affected in particular by the sale of T‑Mobile Netherlands Holding B.V., The Hague, and the funds drawn by DFMG Holding GmbH, Bonn, to create the target structure under company law for the sale of the cell tower business.

Net cash provided by for investing activities was almost reduced to zero, which corresponds to a decrease of EUR 1.6 billion year-on-year. The main cash inflows resulted from interest received of EUR 0.9 billion and repayments of medium- and long-term loans by subsidiaries in the amount of EUR 0.3 billion. The grant of a short-term loan to Deutsche Telekom Europe B.V., Maastricht, of EUR 0.6 billion and medium- and long-term loans to subsidiaries of EUR 0.6 billion, in particular to GD Towers Holding GmbH, Münster, had an offsetting effect. In the previous year, net cash provided by/used for investing activities had been impacted by cash inflows of EUR 2.0 billion from loan repayments by T‑Mobile USA, Inc., Bellevue, and of EUR 1.8 billion from the intragroup sale of shares as well as by cash outflows of EUR 2.2 billion for the acquisition of further shares in T‑Mobile US, Inc., Bellevue.

Net cash used for financing activities increased by EUR 0.8 billion year-on-year to EUR 7.5 billion. Net cash used for financing activities primarily resulted from the payment of the dividend for the 2022 financial year of EUR 3.5 billion, from net repayments of financial liabilities in the amount of EUR 2.1 billion, and from interest paid of EUR 1.8 billion.

In all, this resulted in an increase in cash and cash equivalents of EUR 1,288 million in the reporting year.