Notes to the consolidated statement of cash flows Net cash from operating activities Net cash from operating activities increased by EUR 0.2 billion year-on-year to EUR 13.5 billion. Exchange rate effects weighed on the continuing positive business trend in the United States operating segment. Factoring agreements – especially in the Systems Solutions operating segment – resulted in positive effects of EUR 0.2 billion on net cash from operating activities in the reporting period. The effect from factoring agreements in the prior-year period totaled EUR 0.5 billion. The comparable figure in the prior-year period included a EUR 0.1 billion higher dividend payment from BT (totaling EUR 0.2 billion), while the profit of EUR 0.1 billion distributed by Toll Collect GmbH was a key component in the reporting period. Net interest payments were EUR 0.7 billion lower, enhancing net cash from operating activities, while the increase of EUR 0.1 billion in payments for income taxes decreased net cash from operating activities. Net cash used in investing activities (XLS:) Download millions of € Q1–Q3 2018 Q1–Q3 2017 a Includes, in addition to the purchase price of EUR 260 million, inflows of cash and cash equivalents in the amount of EUR 2 million. b Includes, in addition to the purchase price of EUR 1,792 million, inflows of cash and cash equivalents in the amount of EUR 1 million. c Relates primarily to outflows of cash and cash equivalents in connection with the transfer of the stake in BT as plan assets to Deutsche Telekom Trust e.V. in March 2018. Cash capex Germany operating segment (3,242) (3,109) United States operating segment (3,653) (11,148) Europe operating segment (1,253) (1,273) Systems Solutions operating segment (352) (264) Group Development operating segment (201) (215) Group Headquarters & Group Services (748) (712) Reconciliation 99 180 (9,351) (16,541) Net cash flows for collateral deposited and hedging transactions (460) 1,613 Cash inflows from the sale of the shares in Scout24 AG – 319 Cash outflows for the acquisition of shares in Layer3 TVa (258) – Cash outflows for the acquisition of shares in UPC Austria GmbHb (1,791) – Proceeds from the disposal of property, plant and equipment, and intangible assets 381 276 Cash flows from the loss of control of subsidiaries and associatesc (65) 499 Reverse allocation under contractual trust agreement (CTA) on pension commitments 225 – Payment in relation to settlement reached in Toll Collect arbitration proceedings (200) – Payment in relation to equity maintenance undertaking for Toll Collect GmbH (60) – Acquisition/sale of government bonds, net – 5 Other (76) 70 (11,655) (13,759) Cash capex decreased from EUR 16.5 billion to EUR 9.4 billion. The prior-year figure contained a total of EUR 7.3 billion for the acquisition of mobile spectrum licenses, while the figure for the reporting period included payments totaling EUR 0.2 billion. In both periods, these payments related almost exclusively to the United States operating segment. Whereas cash capex in the Germany operating segment was up EUR 0.1 billion year-on-year due to the broadband/fiber-optic network build-out, cash capex in the United States operating segment – not including investments in mobile spectrum licenses – was EUR 0.4 billion lower, primarily due to exchange rate effects. Adjusted for exchange rate effects, and excluding capital expenditure on mobile spectrum licenses, cash capex was higher overall than in the prior-year period. Net cash used in financing activities (XLS:) Download millions of € Q1–Q3 2018 Q1–Q3 2017 Repayment of bonds (4,554) (10,980) Dividends (including to non-controlling interests) (3,254) (1,559) Repayment of financial liabilities from financed capex and opex (213) (264) Repayment of EIB loans (159) (323) Net cash flows for collateral deposited and hedging transactions 256 28 Repayment of lease liabilities (629) (541) Repayment of financial liabilities for media broadcasting rights (323) (198) Cash flows from continuing involvement factoring, net 32 (9) Loans taken out with the EIB 150 675 Promissory notes, net 324 167 Secured loans – (1,863) Issuance of bonds 7,483 9,445 Commercial paper, net (775) 1,568 Overnight borrowings from banks 533 – Cash inflows from transactions with non-controlling entities T-Mobile US stock options 3 18 3 18 Cash outflows from transactions with non-controlling entities T-Mobile US share buy-backs (946) (94) OTE share buy-backs (63) – Acquisition of T-Mobile US shares (164) – Acquisition of OTE shares (284) – Other (1) (10) (1,458) (104) Other (355) (342) (2,939) (4,282) Non-cash transactions in the consolidated statement of cash flows In the first three quarters of 2018, Deutsche Telekom chose financing options totaling EUR 0.2 billion 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 (Q1 – Q3 2017: EUR 0.3 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 three quarters of 2018, Deutsche Telekom leased network equipment (classified as a finance lease) for a total of EUR 0.6 billion (Q1 – Q3 2017: EUR 0.8 billion). The finance lease is subsequently also shown under financial 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 0.2 billion were recognized in the first three quarters of 2018 for future consideration for acquired broadcasting rights (Q1–Q3 2017: EUR 0.2 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 0.7 billion was recognized for mobile handsets under property, plant and equipment in the reporting period (Q1–Q3 2017: EUR 0.7 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. Following the transfer of the financial stake in the BT Group to Deutsche Telekom Trust e.V. in the first quarter of 2018, a non-cash transfer of EUR 3.0 billion to plan assets was made in order to increase external capital funding; this reduced the provisions for pensions recognized in the statement of financial position.
