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 declined only slightly by EUR 1.6 billion year on year to EUR 131.9 billion.

The development of total assets was attributable in particular to the decrease of EUR 0.8 billion in receivables, the decrease of EUR 0.4 billion in cash and cash equivalents, and the decrease of EUR 0.3 billion in financial assets.

The EUR 0.3 billion decline in financial assets was largely due to capital repayments by subsidiaries totaling EUR 0.7 billion. Notably, a write-up of the shares in Hellenic Telecommunications Organization S.A. (OTE), Marousi, in the amount of EUR 0.4 billion had an offsetting effect.

Receivables decreased to EUR 6.8 billion, down by EUR 0.8 billion on the prior-year figure. This decline was due primarily to loan repayments by Deutsche Telekom Holding B.V., Maastricht, of EUR 1.7 billion and by Deutsche Telekom Europe B.V., Maastricht, of EUR 0.3 billion. A EUR 1.3 billion increase in receivables from cash management from affiliated companies had an offsetting effect.

The development of total shareholders’ equity and liabilities was mainly influenced by the decrease of EUR 3.1 billion in shareholders’ equity, of EUR 0.8 billion in remaining liabilities, and of EUR 0.3 billion in accruals for pensions and similar obligations. By contrast, financial liabilities rose by EUR 2.8 billion.

The EUR 3.1 billion decline in shareholders’ equity was primarily attributable to the dividend payment of EUR 4.4 billion for the previous year. In addition, the share buy-back program reduced retained earnings by EUR 1.8 billion and capital stock by EUR 0.2 billion in 2025. Net income for the 2025 financial year of EUR 3.2 billion had an increasing effect on equity.

Accruals for pensions and similar obligations fell by EUR 0.3 billion. Payments of pension entitlements and the higher fair value of the plan assets offset against obligations more than compensated for a retransfer from the plan assets in the reporting year.

Financial liabilities increased by EUR 2.8 billion year on year to EUR 13.5 billion, due primarily to the issue of new bonds in the amount of EUR 2.4 billion. In addition, net borrowing from banks increased financial liabilities by EUR 0.4 billion.

The decrease in remaining liabilities by a total of EUR 0.8 billion was attributable primarily to loan repayments to Deutsche Telekom International Finance B.V., Maastricht, of EUR 1.3 billion and to the decrease in liabilities from cash management of EUR 1.1 billion. Furthermore, other liabilities fell by EUR 0.3 billion. By contrast, loans from Deutsche Telekom Holding B.V., Maastricht, of EUR 1.5 billion and from Deutsche Telekom Europe B.V., Maastricht, of EUR 0.5 billion increased remaining liabilities.

Net cash provided by operating activities decreased year on year by EUR 14.7 billion to EUR 0.9 billion. The development of net cash provided by operating activities was mainly impacted by income related to subsidiaries, associated and related companies and the change in intragroup cash management balances. The high prior-year amount was due to the EUR 5.7 billion increase in income related to subsidiaries, associated and related companies and in particular to the change of EUR 6.3 billion in cash management balances vis-à-vis Deutsche Telekom Towers Holding GmbH, Bonn, resulting from the payment of the proceeds from the sale of shares in GD Towers Holding GmbH, Bonn.

Net cash provided by investing activities came to EUR 3.6 billion, which corresponds to a year-on-year increase of EUR 3.8 billion. The largest cash inflows resulted from loan repayments by Deutsche Telekom Holding B.V., Maastricht, of EUR 1.7 billion and by Deutsche Telekom Europe B.V., Maastricht, of EUR 0.3 billion. Added to this were capital repayments by subsidiaries totaling EUR 0.7 billion. Deutsche Telekom AG also received interest payments of EUR 0.9 billion.

Net cash used for financing activities increased by EUR 10.0 billion year on year to EUR -4.9 billion. It mainly resulted from payment of the dividend for the 2024 financial year of EUR 4.4 billion, from interest paid of EUR 1.7 billion, and from payments of EUR 2.0 billion under the share buy-back program. The net issuance of financial liabilities in the amount of EUR 2.8 billion and net cash inflows from the increase in financial liabilities to affiliated companies of EUR 0.5 billion had an offsetting effect. The prior-year figure primarily included net repayments of financial liabilities to affiliated companies in the amount of EUR 8.2 billion.

In all, this resulted in a decrease in cash and cash equivalents of EUR 0.4 billion in the reporting year.