Cash Flow and Capital Expenditures

During 3Q 09 cash generated from operations decreased by 15.1% to EUR 368.0 million mainly due to lower results from operations, payments for provisions and an increase in accounts receivables in 2009.

Cash outflow from investing activities decreased from EUR 185.4 million in 3Q 08 to EUR 96.9 million in 3Q 09 mainly due to lower capital expenditures.

Cash outflow from financing activities decreased from EUR 269.9 million in 3Q 08 to EUR 22.8 million in 3Q 09 following the repayment of short-term borrowings in 3Q 08.

Reduction of capital expenditures by 16.0% to support free cash flow  

During 3Q 09 total capital expenditures were reduced by 16.0% to EUR 154. 5 million. Capital expenditures for tangible assets decreased by 21.2% to EUR 111. 2 million and capital expenditures for intangible assets remained almost stable at EUR 43.3 million.

In the Fixed Net segment capital expenditures increased by 38.6% to EUR 67.5 million during 3Q 09, mainly due to investments into the access and core net infrastructure, which were postponed in the first half of 2009.

In the Mobile Communication segment capital expenditures decreased by 35.7% to EUR 87.0 million in 3Q 09.