Summarised consolidated cash flow statement - IFRS basis
For the year ended 31 December 2007
The cash flows presented in this statement cover all the Group's activities and include flows from policyholder and shareholder activities.
| 2007 | 2006 | |||
|---|---|---|---|---|
| Long-term business operations £m |
Non-long-term business operations £m |
Group £m |
Restated Group £m |
|
| Cash flows from operating activities | ||||
| Cash generated from operations | 3,215 | 1,618 | 4,833 | 2,474 |
| Tax paid | (423) | (378) | (801) | (595) |
| Net cash from operating activities | 2,792 | 1,240 | 4,032 | 1,879 |
| Cash flows from investing activities: | ||||
| Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | (661) | (108) | (769) | (1,889) |
| Disposal of subsidiaries, joint ventures and associates, net of cash transferred | 256 | 27 | 283 | 616 |
| Loans to joint ventures and associates | 33 | - | 33 | (104) |
| Purchases of property and equipment | (46) | (181) | (227) | (295) |
| Proceeds on sale of property and equipment | 28 | 65 | 93 | 156 |
| Purchases of intangible assets | (17) | (31) | (48) | (58) |
| Net cash (used in) / from investing activities | (407) | (228) | (635) | (1,574) |
| Cash flows from financing activities: | ||||
| Proceeds from issue of ordinary shares, net of transaction costs | - | 48 | 48 | 935 |
| Net drawdown of borrowings | 286 | 36 | 322 | 901 |
| Interest paid on borrowings | (608) | (600) | (1,208) | (825) |
| Preference dividends paid | - | (17) | (17) | (17) |
| Ordinary dividends paid | - | (500) | (500) | (490) |
| Coupon payments on direct capital instrument | - | (53) | (53) | (52) |
| Finance lease payments | - | (7) | (7) | (22) |
| Capital contributions from minority shareholders | 278 | 29 | 307 | 304 |
| Dividends paid to minority interests of subsidiaries | (48) | (18) | (66) | (75) |
| Non-trading cash flows between operations | (444) | 444 | - | - |
| Net cash from / (used in) financing activities | (536) | (638) | (1,174) | 659 |
| Net increase in cash and cash equivalents | 1,849 | 374 | 2,223 | 964 |
| Cash and cash equivalents at 1 January | 9,388 | 3,033 | 12,421 | 11,623 |
| Effect of exchange rate changes on cash and cash equivalents | 464 | 141 | 605 | (166) |
| Cash and cash equivalents at 31 December | 11,701 | 3,548 | 15,249 | 12,421 |
| Cash and cash equivalents at 31 December comprised: | ||||
| Cash at bank and in hand | 2,740 | 1,264 | 4,004 | 4,087 |
| Cash equivalents | 9,144 | 2,722 | 11,866 | 9,030 |
| 11,884 | 3,986 | 15,870 | 13,117 | |
| Bank overdrafts | (183) | (438) | (621) | (696) |
| 11,701 | 3,548 | 15,249 | 12,421 | |
Of the total cash and cash equivalents shown above £96 million has been classified as held for sale (full year 2006: nil).
See the Basis of preparation note, for an explanation of the 2006 restatement of cash and cash equivalents.