The main reason for the fall in net value added from 42.8 billion euros to 33.5 billion euros is the higher disbursement for investments in the previous year, especially in connection with the spectrum auction of FCC licenses in the United States, which was completed in April 2017. Investments for the network build-out in the United States and the fiber-optic expansion in Germany remained at the same high level year-on-year. Payments to capital investors fell, in particular due to the lower financing cash flow year-on-year, to the increased early and scheduled redemption of bonds and repayment of loans in 2017, and to lower interest payments. Payments to employees increased slightly in 2018 due to restructuring costs associated with early retirement for civil servants and a rise in salaries resulting from collective agreements. This was offset by lower headcounts in Germany.
In contrast to the statement of income, the net value added only takes account of real payment flows. That means that deferred tax expenses and the accrual of provisions do not impact the net value added of the reporting period. Although these costs are deducted from net profit in the statement of income, they are not linked to any current payments to stakeholder groups, as is the case with net value added. Outpayments in this respect are scheduled for the future and will only be accounted for in net value added in future years.Reporting against standards
With this KPIGRI 201-1 (Direct economic value generated and distributed) GRI indicator., we fully cover the