Cash flow statement for continuing operations

Selected cash flow indicators (continuing operations)
€m
	H1 2008	H1 2009
Cash and cash equivalents as at 30 June	1,120	3,222
Change in cash and cash equivalents	–185	1,613
Net cash from/used in operating activities	623	−229
Net cash used in investing activities	–334	–330
Net cash used in/from financing activities	–474	2,172

Net cash used in operating activities in the first half of 2009 amounted to €229 million. In the prior-year period, net cash of €623 million had been generated from operating activities. The main reason for the decrease in net cash was the drop in EBIT of €769 million and greater utilisation of provisions, which were primarily created for restructuring measures in the domestic US express business. In contrast, the net outflow of working capital fell by €223 million, predominantly as a result of the reduction in receivables and other assets.

At €330 million, net cash used in investing activities was more or less stable compared with the prior-year figure (€334 million). Net cash provided by the disposal of non-current assets declined by €334 million. The sales of real estate were a key factor improving liquidity in the previous year. At €674 million, cash paid to acquire non-current assets was down significantly on the prior-year figure (€1,202 million). In addition to the cash paid to acquire property, plant and equipment and intangible assets, net cash used to acquire subsidiaries and other business units recorded a substantial drop.

Taken together, net cash used in operating activities and net cash used in investing activities resulted in a negative free cash flow of €559 million. In the previous year, the free cash flow was clearly positive, at €289 million.

Net cash provided by financing activities amounted to €2,172 million in the first half of 2009. This increase was largely due to Deutsche Bank’s subscription of the mandatory exchangeable bond in connection with the sale of Postbank and to payment of the collateral for the put option for the remaining Postbank shares. The dividend payment to our shareholders was the largest payment in this area (€725 million). Net cash used in financing activities in the previous year amounted to €474 million.

Compared with 31 December 2008, cash and cash equivalents fell from €4,662 million to €3,222 million due to these changes in the cash flows from the individual activities in the continuing operations and discontinued operations.