Notes to the consolidated statement of cash flows

Net cash from operating activities

Net cash from operating activities increased by EUR 1.7 billion year-on-year to EUR 6.0 billion. In the first quarter of 2018, the cash outflows in connection with operating leases reduced net cash from operating activities. Due to the mandatory first-time application of the IFRS 16 accounting standard, the principal repayment portion of lease payments is presented in net cash used in/from financing activities. The strong performance of the United States operating segment significantly increased net cash from operating activities. Factoring agreements – especially in the Systems Solutions operating segment – resulted in positive effects of EUR 0.3 billion on net cash from operating activities in the reporting period. The effect from factoring agreements in the prior-year period also totaled EUR 0.3 billion. In addition, in the prior-year period, dividends received in the amount of EUR 0.2 billion had had an increasing effect. Net cash from operating activities was also reduced by EUR 0.1 billion higher net interest payments.

Net cash used in investing activities

Cash capex increased by EUR 0.7 billion to EUR 3.8 billion. In the reporting period, mobile spectrum licenses were acquired for total cash of EUR 0.1 billion, primarily in the United States operating segment. The prior-year figure likewise included a total of EUR 0.1 billion for the acquisition of mobile spectrum licenses, also predominantly for the United States operating segment. The increase of EUR 0.6 billion in cash capex compared with the prior-year period is attributable to the United States operating segment and is mainly due to the infrastructure build-out for the 600 MHz spectrum, laying the groundwork for 5G.

Net cash used in/from financing activities

Non-cash transactions in the consolidated statement of cash flows

In the first quarter of 2019, 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 (Q1 2018: EUR 0.2 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 the first quarter of 2019, Deutsche Telekom hired network equipment for a total of EUR 1.1 billion that is classified as a lease in accordance with IFRS 16 (Q1 2018: finance lease in the amount of EUR 0.2 billion). The finance lease is subsequently also presented under lease 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 0.1 billion were recognized in the first quarter of 2019 for future consideration for acquired broadcasting rights (Q1 2018: EUR 0.1 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, EUR 0.1 billion was recognized for mobile handsets under property, plant and equipment in the reporting period (Q1 2018: EUR 0.3 billion). These relate to the JUMP! On Demand business model at T-Mobile US, under which customers do not purchase the devices but lease them. The payments are presented under net cash from operating activities.

As part of the acquisition of 100 percent of the shares in Tele2 Netherlands N.V., Deutsche Telekom transferred a 25 percent share in T-Mobile Netherlands (prior to the business combination). For more information, please refer to the section “Changes in the composition of the Group.”