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 27.3 billion. The strong business performance both in the United States and outside of the United States provided the basis for the positive trend. By contrast, higher cash outflows in connection with the integration of Sprint in the United States and an increase of EUR 0.2 billion in net interest payments had a decreasing effect. Factoring agreements of EUR 0.1 billion had a positive impact on net cash from operating activities in the reporting period. In the prior-year period, factoring agreements had had a positive effect of EUR 0.2 billion.

Net cash used in/from investing activities

At EUR 18.2 billion, cash outflows for investments in intangible assets and property, plant and equipment were EUR 3.1 billion lower than in the prior-year period. In the reporting period, the United States operating segment acquired spectrum licenses for a total amount of EUR 3.0 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 8.2 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 2.3 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. In the Germany operating segment, cash capex increased by EUR 0.2 billion in connection with the fiber-optic and 5G build-out. A decline in the Group Development operating segment had an offsetting effect of EUR 0.2 billion, mainly due to the sale of T‑Mobile Netherlands and lower build-out investments made by GD Towers.

Net cash used in/from financing activities

Non-cash transactions

In the reporting period, Deutsche Telekom leased assets totaling EUR 10.4 billion, mainly network equipment, cell sites, and land and buildings. These assets will subsequently be recognized in the statement of financial position under right-of-use assets as well as non-current assets and disposal groups held for sale, and the related liabilities under lease liabilities and liabilities directly associated with non-current assets and disposal groups held for sale. 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 0.6 billion against the prior-year period, primarily in the United States operating segment, due to the sale of T‑Mobile Netherlands, and due to the offsetting effect of the remeasurement of the lease liabilities of the GD tower companies. 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 more information on the modification of the arrangements between T‑Mobile US and Crown Castle, and on the remeasurement of the lease liabilities of the GD tower companies, 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 0.3 billion were recognized in the reporting period for future consideration for acquired broadcasting rights (prior-year period: EUR 0.4 billion). The payment of the consideration will be recognized in net cash used in/from financing activities.

In the United States operating segment, EUR 0.3 billion was recognized for mobile terminal equipment under property, plant and equipment in the reporting period (prior-year period: EUR 0.9 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.