Cash Flow and Capital Expenditures

Cash generated from operations decreased by EUR 142.8 million to EUR 962.9 million in the first nine months of 2009 mainly following lower results from operations and payments for provisions.

Cash outflows for investing activities decreased to EUR 449.6 million in the first nine months of 2009 compared to EUR 531.4 million in the first nine months of 2008 mainly due to lower capital expenditures.

Cash flow and net debt   
in EUR million1-9M 091-9M 08% change
Cash generated from operations962.91,105.7-12.9%
Cash used in investing activities-449.6-531.4-15.4%
Cash used in financing activities5.7-619.0n.a.
Effect of exchange rate changes43.10.9n.a.
Net increase/decrease in cash and cash equivalents562.1-43.9n.a.
    
in EUR millionSept. 30, 09Dec. 31, 08% change
Net debt3,781.53,993.3-5.3%
Net debt/EBITDA (12 months) excluding restructuring program2.1x2.1x 

Cash from financing activities recorded a net inflow of EUR 5.7 million in the first nine months of 2009 compared to a net outflow of EUR 619.0 million during the same period of the previous year as a consequence of the repayments of short-term borrowings in 2008.

Postponements and restrictive investment policy supported  reduction in Capex

Total capital expenditures decreased by 21.4% to EUR 419.8 million in the first nine months of 2009 mainly due to lower capital expenditures in the Mobile Communication segment. Capital expenditures for tangible assets declined by 25.6% to EUR 309.2 million, while capital expenditures for intangible assets decreased by 6.7% to EUR 110.6 million.

Capital expenditures   
in EUR million1-9M 091-9M 08% change
Fixed Net156.9181.2-13.4%
Mobile Communication262.9353.1-25.5%
Total capital expenditures419.8534.3-21.4%
Thereof tangible309.2415.7-25.6%
Thereof intangible110.6118.6-6.7%

In the Fixed Net segment capital expenditures decreased by 13.4% to EUR 156.9 million during the first nine months of 2009 due to postponements of investments in access and core infrastructure as well as a restrictive investment policy.

In the Mobile Communication segment capital expenditures decreased by 25.5% to EUR 262.9 million in the first nine months of 2009 as a result of lower investments in all mobile operations.