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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2015

45Interim consolidated financial statements Deutsche Telekom. Interim Group Report 9M 2015. PROFIT/LOSS FROM FINANCIAL ACTIVITIES Other financial income/expense includes the dividend payments of EUR 0.4 billion received from the EE joint venture. The dividend pay­ments recognized in profit or loss related to the reclassification in December 2014 of the stake held in the joint venture as non-current assets and disposal groups held for sale. Remeasurement losses resulting from the subsequent mea­ surement of embedded derivatives contained in the Mandatory Convertible Preferred Stocks of T-Mobile US and from the subsequent measurement of embedded options in bonds issued by T-Mobile US had an offsetting effect. INCOME TAXES In the first three quarters of 2015, a tax expense of EUR 0.8 billion was recorded. The comparatively low tax rate is partly a consequence of tax refunds for prior years in Germany, Europe, and the United States. In addition, the tax rate is reduced by the sale of stakes in two German shareholdings. The proceeds from the sale are subject to low taxation. OTHER DISCLOSURES DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES Depreciation, amortization and impairment losses increased by EUR 0.4 billion year-on-year to EUR 8.2 billion. This was primarily due to the roll-out of the 4G/LTE network in connection with T-Mobile USʼ network modernization program, which resulted in an increased depreciation and amortization base. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS Net cash from operating activities Net cash from operating activities increased by EUR 1.4 billion year-on-year to EUR 11.1 billion, mainly thanks to the positive business development of the United States operating segment. The agreement to settle an ongoing complaints procedure under anti-trust law also resulted in a cash inflow of EUR 175 million. During the reporting period, factoring agreements were concluded concerning monthly revolving sales of current trade receivables. Factoring agreements resulted in positive effects of EUR 0.6 billion on net cash from operating activities in the first three quarters of 2015. This primarily related to a factoring agreement that was terminated in 2014 and renewed in 2015. The effect from factoring agreements in the prior-year period totaled EUR 0.5 billion. The dividend payment received for the first time from the Scout24groupofEUR0.1billionandayear-on-yearincreaseofEUR 0.1 billion in the dividend payments from the EE joint venture also increased net cash from operating activities. Changes in the terms and conditions of interest derivatives resulted in cash inflows of EUR 0.1 billion in the reporting period. Net cash used in investing activities millions of € Q1–Q3 2015 Q1–Q3 2014 Cash capex Germany operating segment (4,644) (2,732) United States operating segment (5,062) (3,957) Europe operating segment (1,191) (1,464) Systems Solutions operating segment (819) (826) Group Headquarters & Group Services (230) (240) Reconciliation 374 492 (11,572) (8,727) Net cash flows for collateral deposited for hedging transactions 1,558 648 Proceeds from the disposal of property, plant and equipment 224 182 Proceeds from the loss of control of subsidiaries and associates a (8) 1,540 Acquisition of the GTS Central Europe group – (539) Government bonds, net 164 57 Other 159 (385) (9,475) (7,224) a Includes cash inflows in the first three quarters of 2014 of EUR 1.6 billion from the sale of 70 percent of the shares in the Scout24 group. Cash capex increased by EUR 2.8 billion to EUR 11.6 billion. In the reporting period,mobilelicenseswereacquiredforatotalofEUR3.8billion,primarilyin the United States and Germany operating segments. In the prior-year period, the United States and Europe operating segments had acquired mobile licenses for EUR 2.0 billion. In addition, cash capex increased primarily in the United States operating segment in connection with the network modernization, including 4G/LTE network roll-out, and in the Germany operating segment due to the investments made as part of the integrated network strategy in the vectoring/fiber-optic cable build-out, in the IP trans­ formation, and in the LTE infrastructure. Net cash used in financing activities millions of € Q1–Q3 2015 Q1–Q3 2014 Commercial paper, net 2,576 1,456 Loans taken out with the EIB 1,199 – T-Mobile US stock options 41 17 Repayment of bonds (3,764) (3,794) Dividends (including to non-controlling interests) (1,255) (1,289) Acquisition of the remaining shares in Slovak Telekom (900) – Repayment of financial liabilities from financed capex and opex (814) (618) Repayment of EIB loans (412) – Net cash flows for collateral deposited for hedging transactions (289) 136 Cash deposits from the EE joint venture, net (226) (214) Promissory notes, net (179) (1,219) Money market loans, net (160) – Repayment of lease liabilities (149) (121) Issuance of bonds – 3,019 Acquisition of the remaining shares in T-Mobile Czech Republic – (828) Other (615) (30) (4,947) (3,485) Reconciliation 374492 for hedging transactions 1,558648 plant and equipment 224182 Government bonds, net 16457 Commercial paper, net 2,5761,456 T-Mobile US stock options 4117

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