Cash flow statement for continuing operations

Selected cash flow indicators (continuing operations)
€m
	Q1 2009	Q1 2010
Cash and cash equivalents as at 31 March	3,511	2,696
Change in cash and cash equivalents	1,892	–407
Net cash used in operating activities	–275	–95
Net cash used in investing activities	–1,119	–195
Net cash from/used in financing activities	3,286	–117

Operating cash flow in the first quarter is routinely affected by the annual prepayment of the annual contribution to Bundes-Pensions-Service für Post und Telekommunikation. This resulted in a cash outflow of €556 million in the reporting period. Net cash used in operating activities was €95 million in the first quarter of 2010 (previous year: €275 million). The higher EBIT had a significantly positive effect, resulting in a cash inflow of €441 million before changes in working capital, compared with a cash outflow of €16 million in the previous year. By contrast, the change in receivables and other assets in working capital negatively affected operating cash flow.

At €195 million, net cash used in investing activities was significantly down on the prior-year figure (€1,119 million). The largest cash payment in this area was incurred for investments in property, plant and equipment, and intangible assets. In the previous year, we invested part of the funds we received from the sale of Postbank in capital market instruments.

Taken together, changes in cash flows from operating and investing activities result in free cash flow of €–290 million, an improvement of €1,104 million.

Net cash used in financing activities amounted to €117 million, most of which was used for interest payments. By contrast, net cash from financing activities amounted to €3,286 million in the previous year: 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 increased long-term borrowings.

Compared with 31 December 2009, cash and cash equivalents fell from €3,064 million to €2,696 million due to the changes in the cash flows from the individual activities of continuing operations.