Notes to the consolidated statement of cash flows
Sprint has been included in Deutsche Telekom’s consolidated financial statements as a fully consolidated subsidiary since April 1, 2020. As such, the development of cash flows can only be compared with the prior-year period to a limited extent.
For further information on the business combination of T‑Mobile US and Sprint, please refer to the section “Changes in the composition of the Group and other transactions.”
Net cash from operating activities
Net cash from operating activities increased by EUR 4.3 billion year-on-year to EUR 8.3 billion. This increase is primarily attributable to the business combination of T‑Mobile US and Sprint effective April 1, 2020. In addition, the continuing strong performance of the operating segments, especially in the United States, had an increasing effect on net cash from operating activities. Moreover, net cash from operating activities had been negatively affected in the prior-year period by interest payments totaling EUR 1.6 billion for zero-coupon bonds as well as by a net increase of EUR 0.7 billion in interest payments, mainly as a result of the financial liabilities recognized and the restructuring begun in connection with the acquisition of Sprint, and the related increase in financing. Income tax payments increased by EUR 0.1 billion compared with the prior-year period. Factoring agreements did not result in any material effects on net cash from operating activities in the reporting year. In the prior-year period, factoring agreements had had negative effects of EUR 0.5 billion.
Net cash used in investing activities
millions of € |
|
|
|---|---|---|
|
Q1 2021 |
Q1 2020 |
Cash capex |
|
|
Germany operating segment |
(860) |
(1,049) |
United States operating segment |
(10,513) |
(1,708) |
Europe operating segment |
(485) |
(438) |
Systems Solutions operating segment |
(49) |
(25) |
Group Development operating segment |
(115) |
(119) |
Group Headquarters & Group Services |
(250) |
(230) |
Reconciliation |
0 |
0 |
|
(12,272) |
(3,570) |
Payments for publicly funded investments |
(84) |
(102) |
Proceeds from public funds for investments |
26 |
23 |
Net cash flows for collateral deposited and hedging transactions |
(61) |
962 |
Changes in cash and cash equivalents in connection with the acquisition of control of subsidiaries and associates |
(23) |
0 |
Proceeds from the disposal of property, plant and equipment, and intangible assets |
48 |
87 |
Other |
(6) |
(106) |
|
(12,373) |
(2,706) |
At EUR 12.3 billion, cash capex was EUR 8.7 billion higher than in the prior-year period. In the United States operating segment, FCC mobile licenses were acquired as part of the concluded C-band auction for a total of EUR 7.9 billion and, in the Europe operating segment, mobile spectrum licenses were acquired for a total of EUR 0.1 billion in the reporting period. The prior-year figure included EUR 0.2 billion for the acquisition of mobile spectrum licenses, which related to the United States operating segment. Excluding investments in mobile spectrum licenses, cash capex was up EUR 0.9 billion year-on-year. This change was primarily attributable to an increase of EUR 1.1 billion in the United States operating segment on account of the inclusion of Sprint and as a result of the further build-out of the 5G network. A decline of EUR 0.2 billion in the Germany operating segment due to lower capital expenditure had an offsetting effect. Construction work had to be postponed in the first quarter of 2021 due to bad weather. Also, construction work planned for 2021 had been brought forward to the fourth quarter of 2020.
Net cash from/used in financing activities
millions of € |
|
|
|---|---|---|
|
Q1 2021 |
Q1 2020 |
Repayment of bonds |
(2,853) |
(2,100) |
Dividend payments (including to other shareholders of subsidiaries) |
0 |
0 |
Repayment of financial liabilities from financed capex and opex |
(26) |
(23) |
Repayment of EIB loans |
(481) |
(181) |
Net cash flows for collateral deposited and hedging transactions |
0 |
(1) |
Principal portion of repayment of lease liabilities |
(1,724) |
(1,263) |
Repayment of financial liabilities for media broadcasting rights |
(71) |
(117) |
Cash flows from continuing involvement factoring, net |
(70) |
(89) |
Promissory notes, net |
(58) |
(202) |
Issuance of bonds |
5,666 |
1,609 |
Overnight borrowings from banks, net |
600 |
0 |
Repayment of liabilities from 5G spectrum acquired in Germany |
(85) |
0 |
Cash inflows from transactions with non-controlling entities |
|
|
T‑Mobile US stock options |
3 |
1 |
Toll4Europe capital contributions |
0 |
4 |
|
3 |
4 |
Cash outflows from transactions with non-controlling entities |
|
|
T‑Mobile US share buy-backs |
(180) |
(128) |
OTE share buy-backs |
(20) |
(22) |
Other payments |
(7) |
(16) |
|
(208) |
(165) |
Other |
(105) |
(34) |
|
588 |
(2,562) |
Non-cash transactions
Deutsche Telekom chose no financing options in the reporting period and no financing options to a significant extent in the prior-year period under which the payments for trade payables from operating and investing activities become due at a later point in time mainly by involving banks in the process.
In the first quarter of 2021, Deutsche Telekom leased assets of EUR 1.1 billion, mainly network equipment, and land and buildings (prior-year period: EUR 1.0 billion). As a result these assets are recognized in the statement of financial position under right-of-use assets and the related liability under lease liabilities. Future repayments of the liabilities will be recognized in net cash from/used in financing activities. The year-on-year increase is mainly attributable to the inclusion of Sprint in the United States operating segment.
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 2021 for future consideration for acquired broadcasting rights (prior-year period: EUR 0.1 billion). The payment of the consideration will be recognized in net cash from/used in financing activities.
In the United States operating segment, EUR 0.4 billion was recognized for mobile devices under property, plant and equipment in the first quarter of 2021 (Q1 2020: EUR 0.3 billion). These relate to the equipment lease model at T‑Mobile US, under which customers do not purchase the devices but lease them. The cash outflows are presented under net cash from operating activities.