Good liquidity position

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
€m
	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
Interest paid	183	178
Adjustment for operating leases	1,055	1,055
Adjustment for pensions	198	198
Non-recurring income/expenses	531	387
Funds from operations (FFO)	3,769	3,814
Reported financial liabilities1)	7,022	6,885
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)	2,893	2,463
Debt	10,700	10,942
FFO to debt (%)	35.2	34.9