Cash flow statement for continuing operations

Selected indicators on financial position (continuing operations)
€m
	H1 2009	H1 2010
			Cash and cash equivalents as at 30 June	3,222	2,065
Change in cash and cash equivalents	1,613	−1,099
Net cash used in/from operating activities	−229	270
Net cash used in investing activities	−326	−343
Net cash from/used in financing activities	2,168	−1,026

Net cash from operating activities amounted to €270 million in the first half of 2010. Compared to this, in the prior-year period, net cash of €229 million had been used in operating activities. This clear improvement is due primarily to the €629 million increase in EBIT. The losses on the disposal of assets, which reduced EBIT by €255 million in the reporting period, have been corrected in the line item net income from disposal of non-current assets. The cash flow that resulted is presented in net cash used in investing activities. A decline in the utilisation of provisions also had a positive effect. Overall, net cash from operating activities before changes in working capital improved from €6 million in the previous year to €891 million in the reporting period. Changes in working capital, on the other hand, increased by €386 million, particularly as a result of the rise in receivables and other assets. The routine payment to Bundes-Pensions-Service made in January of each year led to an operating cash outflow totalling €556 million.

At €343 million, net cash used in investing activities was on par with the previous year (€326 million). Proceeds from the disposal of non-current assets are negative, since this item contains the cash flows from the sales of the day-definite domestic express business in the UK and France. The reduction in investments in investment funds was the main reason for the cash inflow of €293 million from changes in current financial assets. 

Taken together, changes in cash flows from operating and investing activities resulted in free cash flow of €–73 million, an improvement of €482 million in comparison to the prior-year figure. 

Net cash used in financing activities amounted to €1,026 million, as opposed to net cash from financing activities of €2,168 million in the previous year resulting from the subscription of the mandatory exchangeable bond by Deutsche Bank and the payment of the collateral for the put option for the remaining Postbank shares. The largest cash payment in this area, as is regularly the case in the first half of the year, was the dividend payment to our shareholders in the amount of €725 million.

Compared with 31 December 2009, cash and cash equivalents fell from €3,064 million to €2,065 million due to the changes to the cash flows from the individual activities of our continuing operations.