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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

67Interim consolidated financial statements Notes to the consolidated statement of cash flows. Deutsche Telekom paid EUR 1.4 billion to Elektrim and Vivendi in the first quarter of 2011. This gave Deutsche Telekom full, undisputed ownership of PTC (PTC transaction). In accordance with the standards governing statements of cash flows, this total as of September 30, 2011 consisted of the following: EUR 0.4 billion net cash from operating activities, EUR 0.8 billion net cash used in investing activities and EUR 0.2 billion net cash used in financing activities. Net cash from operating activities. Net cash from operating activities decreased by EUR 0.5 billion year-on-year to EUR 10.0 billion in the first nine months of 2011. The decrease in cash generated from operations is the result of a number of factors, some of which offset each other. The following cash flows were the main contributors to this decrease: net cash from operating activities included cash outflows for the PTC transaction of EUR 0.4 billion in the first nine months of 2011 and cash inflows of EUR 0.3 billion from canceling interest rate swaps in the first nine months of 2010 for which there was no corresponding item in the current year; lower cash inflows from receivables sold (factoring) compared with the prior-year period amounting to EUR 0.2 billion, and lower interest received and higher interest paid totaling EUR 0.2 billion. These effects were partially offset in particular by dividends received from the Everything Everywhere joint venture in the first nine months of 2011 amounting to EUR 0.5 billion and lower income tax payments of EUR 0.1 billion. Net cash used in investing activities. Net cash used in investing activities totaled EUR 7.1 billion as compared with EUR 8.1 billion in the same period of the previous year. This change was attrib- utable to there having been the following cash outflows in the first nine months of 2010 with no comparable payments in the 2011 financial year: the acquisition of LTE licenses for EUR 1.3 billion, a bond issued by the Everything Everywhere joint venture for EUR 0.8 billion and the derecognition and related changes to cash and cash equivalents in connection with the deconsolidation of T-Mobile UK amounting to EUR 0.4 billion. Cash outflows for the acquisition of companies, by contrast, increased by EUR 0.8 billion. While cash outflows of EUR 0.3 billion and EUR 0.1 billion were recorded for the acquisition of STRATO and ClickandBuy respectively in the prior-year period, the cash outflows relating to the PTC transaction in the first nine months of 2011 amounted to EUR 0.8 billion and those relating to the OTE put option II to EUR 0.4 billion in 2011. The decrease of EUR 0.5 billion in cash inflows from the change in short-term investments and marketable securities and receivables was mainly attributable to the lower returns of collateral deposited for hedging and other transactions. In the prior-year period, cash collateral amounting to EUR 0.3 billion deposited in connection with the acquisition of STRATO was returned. Net cash used in financing activities. Net cash used in financing activities amounted to EUR 3.3 billion in the report- ing period, compared with EUR 5.6 billion in the prior-year period. This change was mostly attributable to EUR 1.5 billion lower net repayments of current financial liabilities and a EUR 0.6 billion higher net issuance of non- current financial liabilities compared with the prior year. There was also a year- on-year decrease of EUR 0.5 billion in the level of dividends paid in the first nine months of the year. Payments of EUR 0.2 billion relating to the PTC transaction, for which there were no comparable cash outflows in the prior-year period, had an offsetting effect. The financial liabilities issued in the first nine months of 2011 mainly related to commercial paper for a net amount of EUR 3.5 billion, the utilization of credit facilities for EUR 1.2 billion by OTE, a eurobond issued by OTE for an amount of EUR 0.5 billion, a U.S. dollar bond for an amount of EUR 0.9 billion, a loan taken out with the EIB amounting to EUR 0.7 billion and current loans taken out with banks for EUR 0.4 billion. These issuances of financial liabilities were offset in the same period by repayments of eurobonds for an amount of EUR 4.9 billion, a medium-term note for an amount of EUR 0.8 billion, OTE medium-term notes for an amount of EUR 0.4 billion, a U.S. dollar bond for an amount of EUR 0.4 billion and funds from the joint venture in the United Kingdom amounting to EUR 0.3 billion net. Segment reporting. The following tables give an overall summary of Deutsche Telekom’s operating segments and Group Headquarters & Shared Services for the third quarter and the first nine months of 2011 and 2010 as well as for the full 2010 financial year. For details on the development of operations in the operating segments and at Group Headquarters & Shared Services, please refer to the section “Develop- ment of business in the operating segments” in the interim Group management report. In addition to the disclosures included in the consolidated financial statements as at December 31, 2010 on products and services offered by the operating segments, the Europe operating segment also offers ICT services to business customers in individual national companies.