Notes to the consolidated statement of cash flows
Net cash from operating activities
Net cash from operating activities increased by EUR 1.6 billion year-on-year to EUR 18.0 billion. The strong business performance both in the United States and outside of the United States had a positive effect here, as did the EUR 0.1 billion lower income tax payments. By contrast, the (net) increase in interest payments of EUR 0.1 billion had a reducing effect. Factoring agreements of EUR 0.1 billion had a positive impact on net cash from operating activities in the first half of 2022. In the prior-year period, factoring agreements had also had a positive effect of EUR 0.1 billion.
Net cash used in/from investing activities
millions of € |
|
|
||||||
|---|---|---|---|---|---|---|---|---|
|
H1 2022 |
H1 2021 |
||||||
Cash outflows for investments in intangible assets |
(4,679) |
(10,089) |
||||||
Outflows for investments in property, plant and equipment |
(7,579) |
(6,505) |
||||||
Payments for publicly funded investments |
(162) |
(179) |
||||||
Proceeds from public funds for investments |
129 |
103 |
||||||
Net cash flows for collateral deposited and hedging transactions |
(1,657) |
124 |
||||||
Changes in cash and cash equivalents in connection with the acquisition of control of subsidiaries and associates |
(52) |
(25) |
||||||
Changes in cash and cash equivalents in connection with the contribution of the stake in T‑Mobile Infra into Cellnex Netherlandsa |
0 |
135 |
||||||
Changes in cash and cash equivalents in connection with the sale of the 75 % stake in T‑Mobile Netherlandsb |
3,642 |
0 |
||||||
Changes in cash and cash equivalents in connection with the sale of the 50 % stake in GlasfaserPlusc |
432 |
0 |
||||||
Other changes in cash and cash equivalents in connection with the loss of control of subsidiaries and associates |
15 |
33 |
||||||
Proceeds from the disposal of property, plant and equipment, and intangible assets |
84 |
83 |
||||||
Other |
(320) |
13 |
||||||
|
(10,148) |
(16,307) |
||||||
|
||||||||
At EUR 12.3 billion, cash outflows for investments in intangible assets and property, plant and equipment were EUR 4.3 billion lower than in the prior-year period. In the reporting period, the United States operating segment acquired spectrum licenses for EUR 2.6 billion. Another EUR 0.1 billion was paid in this connection in the 2021 financial year as an advance payment and included in prior-year cash outflows for investments in intangible assets and property, plant and equipment. In the prior-year period, this item had included cash outflows for the acquisition of mobile spectrum licenses of EUR 8.0 billion in the United States operating segment and of EUR 0.1 billion in the Europe operating segment. Excluding investments in mobile spectrum licenses, cash outflows for investments in intangible assets and property, plant and equipment were up EUR 1.1 billion year-on-year. This change was primarily attributable to an increase in the United States operating segment as a result of the further build-out of the 5G network and to exchange rate effects.
Net cash used in/from financing activities
millions of € |
|
|
|---|---|---|
|
H1 2022 |
H1 2021 |
Repayment of bonds |
(1,385) |
(5,330) |
Dividend payments (including to other shareholders of subsidiaries) |
(3,247) |
(2,909) |
Repayment of financial liabilities from financed capex and opex |
0 |
(41) |
Repayment of EIB loans |
(12) |
(481) |
Net cash flows for collateral deposited and hedging transactions |
122 |
0 |
Principal portion of repayment of lease liabilities |
(2,415) |
(3,035) |
Repayment of financial liabilities for media broadcasting rights |
(171) |
(140) |
Cash flows from continuing involvement factoring, net |
13 |
(71) |
Issuance of bonds |
0 |
8,332 |
Overnight borrowings from banks, net |
1 |
0 |
Repayment of liabilities from 5G spectrum acquired in Germany |
(85) |
(85) |
Repayment of liabilities with the right of creditors to priority repayment in the event of default |
(243) |
(474) |
Changes in cash and cash equivalents in connection with the sale and leaseback of the passive mobile infrastructure of T‑Mobile Infra |
0 |
242 |
Cash inflows from transactions with non-controlling entities |
|
|
T‑Mobile US stock options |
3 |
7 |
Cellnex Netherlands capital contributions |
16 |
3 |
Other cash inflows |
5 |
0 |
|
25 |
11 |
Cash outflows from transactions with non-controlling entities |
|
|
Increase of the stake in T‑Mobile US |
(2,210) |
0 |
T‑Mobile US share buy-backs |
(192) |
(243) |
OTE share buy-backs |
(151) |
(65) |
Other payments |
(76) |
(39) |
|
(2,629) |
(347) |
Other |
(464) |
(184) |
|
(10,491) |
(4,513) |
Non-cash transactions
In the reporting period, Deutsche Telekom leased assets totaling EUR 8.9 billion, mainly network equipment, cell sites, and land and buildings. As a result, these assets are 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. In the reporting period, EUR 6.6 billion related to the modification of the arrangements with Crown Castle, resulting in an increase in the same amount in the carrying amount of the right-of-use assets and the lease liabilities. Excluding this effect, asset leases declined by EUR 0.4 billion against the prior-year period, primarily due to the sale of T‑Mobile Netherlands. The modification of the arrangement also increased property, plant and equipment and other financial liabilities by EUR 0.8 billion each for contractual components that, due to their financing character, do not fall under the scope of IFRS 16.
For further information on the modification of the arrangement between T‑Mobile US and Crown Castle, please refer to the section “Right-of-use assets.”
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 0.2 billion were recognized in the reporting period 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 used in/from financing activities.
In the United States operating segment, EUR 0.2 billion was recognized for mobile terminal equipment under property, plant and equipment in the reporting period (prior-year period: EUR 0.7 billion). This relates to the terminal 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. The decline was primarily due to the withdrawal from the terminal equipment lease model.