Notes to the consolidated statement of cash flows

Net cash from operating activities

Net cash from operating activities decreased by EUR 2.0 billion year-on-year to EUR 4.0 billion. This decline is related in part to the repayment of a Deutsche Bundespost treasury note (zero-coupon bond) issued by Deutsche Telekom AG in 1990 with a nominal amount of EUR 0.2 billion, which fell due on December 31, 2019 and was repaid on that date by a bank using its own funds. The payment by Deutsche Telekom AG to this bank was made on the following bank working day of January 2, 2020. The interest portion amounted to EUR 1.2 billion. In addition, the repayment of EUR 0.4 billion in the first quarter of 2020 for another zero-coupon bond also had a negative impact. The interest portion amounted to EUR 0.4 billion. The change in operating working capital resulted in negative effects of EUR 0.5 billion on net cash from operating activities in the reporting period. This change was attributable to an effect of EUR -0.7 billion from the contractual termination of a revolving factoring agreement in the Germany operating segment. In the prior-year period, the change in operating working capital had had a positive effect of EUR 0.1 billion. The continuing strong performance of the operating segments had an increasing effect on net cash from operating activities.

Net cash used in investing activities

Cash capex decreased from EUR 3.8 billion to EUR 3.6 billion. In the United States operating segment, an advance payment of EUR 0.2 billion was made in the reporting period for the acquisition of FCC mobile licenses in connection with the auction of mobile licenses which ended in March 2020. The prior-year figure included EUR 0.1 billion for the acquisition of mobile spectrum licenses, which also primarily related to the United States operating segment. Adjusted for investments in mobile spectrum licenses, cash capex was down by EUR 0.3 billion. In the Germany operating segment, the decline is mainly a result of the changed accounting treatment of grants receivable from funding projects for the broadband build-out as of the start of the third quarter of 2019. Since then, the grants received and payments made for the build-out are no longer part of cash capex. In the United States operating segment, cash capex decreased – on a U.S. dollar basis – mainly due to higher capital expenditures in the first quarter of 2019 related to laying the initial groundwork for 5G.

Net cash used in/from financing activities

Non-cash transactions

In the first quarter of 2020, Deutsche Telekom only chose to a very limited extent financing options 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 2019: 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 2020, Deutsche Telekom leased assets totaling EUR 1.0 billion, mainly network equipment, and land and buildings (Q1 2019: EUR 1.1 billion). These assets are now recognized in the statement of financial position under right-of-use assets and the related liabilities under lease liabilities. Future repayments of the liabilities will be recognized in net cash used in/from financing activities.

Consideration for the acquisition of broadcasting rights is 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 2020 for future consideration for acquired broadcasting rights (Q1 2019: 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 0.3 billion was recognized for mobile handsets under property, plant and equipment in the first quarter of 2020 (Q1 2019: EUR 0.1 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.