The principles and aims of our financial management presented in the 2010 Annual Report remain valid and are being pursued unchanged as is our finance strategy.
“FFO to debt”, our dynamic performance metric, is calculated on a rolling 12-month basis. The definition of this metric and the methodology used to calculate its individual components correspond to those used by the rating agency Standard & Poor’s.
In the first quarter of 2011, “FFO to debt” declined slightly as anticipated due to the prepayment made to the Bundes-Pensions-Service für Post und Telekommunikation, although funds from operations (FFO) increased. At 34.9%, this performance metric is, however, well within our expectations.
Our liquidity position remains good. In the reporting period, we therefore did not utilise the five-year syndicated credit facility agreed upon in December 2010, which has a total volume of €2 billion. As at 31 March 2011, the Group had cash and cash equivalents of €2.9 billion. There are also investment funds callable at sight of approximately €400 million that are reported as current financial assets in the balance sheet.
|12 FFO to debt|
|1 Jan. to
31 Dec. 2010
|1 April 2010 to
31 March 2011
|Operating cash flow before changes in working capital||2,109||2,296|
|Interest and dividends received||59||56|
|Adjustment for operating leases||1,055||1,055|
|Adjustment for pensions||198||198|
|Funds from operations (FFO)||3,769||3,814|
Reported financial liabilities1)
|Financial liabilities related to the sale of Deutsche Postbank AG1)||4,164||4,207|
|Financial liabilities at fair value through profit or loss1)||115||122|
|Adjustment for operating leases2)||5,527||5,527|
|Adjustment for pensions2)||5,323||5,323|
| Surplus cash and near-cash investments1),3)
FFO to debt (%)
|1)||As at 31 December 2010 and 31 March 2011, respectively.|
|2)||As at 31 December 2010.|
|3)||Surplus cash and near-cash investments are defined as cash and cash equivalents and investment funds callable at sight, less cash needed for operations.|