Preliminary results year ended 31 December 2008
05 March 2009
Appendix D – IFRS additional disclosures
D5 – Consolidated cash flow statement
For the year ended 31 December 2008
The cash flows presented in this statement cover all the Group's activities and include flows from both policyholder and shareholder activities.
| Long-term business operations £m |
Non-long-term business operations £m |
Total 2008 £m |
Restated Total 2007 £m |
||
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Cash-generated from operations | 7,920 | 875 | 8,795 | 4,944 | |
| Tax paid | (394) | (248) | (642) | (801) | |
| Net cash from operating activities | 7,526 | 627 | 8,153 | 4,143 | |
| Cash flows from investing activities | |||||
| Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired | (93) | (243) | (336) | (769) | |
| Disposals of subsidiaries, joint ventures and associates, net of cash transferred | 180 | 173 | 353 | 283 | |
| Purchase of minority interest in subsidiary | (65) | – | (65) | – | |
| New loans to joint ventures and associates | (182) | – | (182) | (126) | |
| Repayment of loans to joint ventures and associates | 52 | – | 52 | 159 | |
| Net repayment loans to joint ventures and associates | (130) | – | (130) | 33 | |
| Purchases of property and equipment | (57) | (159) | (216) | (227) | |
| Proceeds on sale of property and equipment | 35 | 24 | 59 | 93 | |
| Purchases of intangible assets | (34) | (26) | (60) | (48) | |
| Net cash used in investing activities | (164) | (231) | (395) | (635) | |
| Cash flows from financing activities | |||||
| Proceeds from issue of ordinary shares, net of transaction costs | – | 20 | 20 | 48 | |
| Treasury shares purchased for employee trusts | – | (29) | (29) | (10) | |
| New borrowings drawn down, net expenses | 1,435 | 4,080 | 5,515 | 6,322 | |
| Repayment of borrowings | (1,365) | (3,852) | (5,217) | (6,000) | |
| Net drawdown of borrowings | 70 | 228 | 298 | 322 | |
| Interest paid on borrowings | (712) | (825) | (1,537) | (1,208) | |
| Preference dividends paid | – | (17) | (17) | (17) | |
| Ordinary dividends paid | – | (732) | (732) | (500) | |
| Coupon payments on direct capital instrument | – | (56) | (56) | (53) | |
| Finance lease payments | – | (14) | (14) | (7) | |
| Capital contributions from minority shareholders | 36 | – | 36 | 307 | |
| Dividends paid to minority interests of subsidiaries | (83) | (23) | (106) | (66) | |
| Non-trading cash flows between operations | (189) | 189 | – | – | |
| Net cash from financing activities | (878) | (1,259) | (2,137) | (1,184) | |
| Net increase in cash and cash equivalents | 6,484 | (863) | 5,621 | 2,324 | |
| Cash and cash equivalents at 1 January | 11,132 | 4,432 | 15,564 | 12,635 | |
| Effect of exchange rate changes on cash and cash equivalents | 2,525 | 359 | 2,884 | 605 | |
| Cash and cash equivalents at 31 December | 20,141 | 3,928 | 24,069 | 15,564 |
Of the total cash and cash equivalents, £493 million (2007: £96 million) was classified as held for sale (see note D6 c (ii)).
Cash and cash equivalents in long-term business operations of £20,141 million (2007: £11,132 million) are primarily held for the benefit of policyholders and so are generally not available for use by the Group.
