IFRS condensed financial statements
Condensed consolidated statement of cash flows
For the six month period ended 30 June 2009
The cash flows presented in this statement cover all the group's activities and include flows from both policyholder and shareholder activities.
| 6 months 2009 |
Restated 6 months 2008 |
Full year 2008 |
|||
|---|---|---|---|---|---|
| Long-term business operations £m |
Non- long-term business operations £m |
Group total £m |
Group total £m |
Group total £m |
|
| Cash flows from operating activities | |||||
| Cash-generated from operations* | 4,199 | (241) | 3,958 | 3,743 | 8,795 |
| Tax paid | (280) | 59 | (221) | (434) | (642) |
| Net cash from operating activities | 3,919 | (182) | 3,737 | 3,309 | 8,153 |
| Cash flows from investing activities | |||||
| Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired | (193) | (30) | (223) | (317) | (336) |
| Disposals of subsidiaries, joint ventures and associates, net of cash transferred | - | (239) | (239) | 65 | 353 |
| Purchase of minority interest in subsidiary | - | - | - | (81) | (65) |
| New loans to joint ventures and associates | (3) | - | (3) | - | (182) |
| Repayment of loans to joint ventures and associates | 3 | - | 3 | - | 52 |
| Net repayment of loans to joint ventures and associates | - | - | - | - | (130) |
| Purchases of property and equipment | (39) | (34) | (73) | (90) | (216) |
| Proceeds on sale of property and equipment | 25 | 1 | 26 | 6 | 59 |
| Purchases of intangible assets | (6) | (1) | (7) | - | (60) |
| Net cash used in investing activities | (213) | (303) | (516) | (417) | (395) |
| Cash flows from financing activities | |||||
| Proceeds from issue of ordinary shares, net of transaction costs | - | - | - | 31 | 20 |
| Treasury shares purchased for employee trusts | - | - | - | - | (29) |
| New borrowings drawn down, net expenses | 413 | 252 | 665 | 2,974 | 5,515 |
| Repayment of borrowings | (330) | (223) | (553) | (2,893) | (5,217) |
| Net drawdown of borrowings | 83 | 29 | 112 | 81 | 298 |
| Interest paid on borrowings | (232) | (473) | (705) | (704) | (1,537) |
| Preference dividends paid | - | (9) | (9) | (9) | (17) |
| Ordinary dividends paid | - | (343) | (343) | (385) | (732) |
| Coupon payments on direct capital instrument | - | - | - | - | (56) |
| Finance lease payments | - | - | - | (1) | (14) |
| Capital contributions from minority shareholders | 5 | 1 | 6 | 7 | 36 |
| Dividends paid to minority interests of subsidiaries | (24) | (12) | (36) | (75) | (106) |
| Non-trading cash flows between operations | (261) | 261 | - | - | - |
| Net cash used in financing activities | (429) | (546) | (975) | (1,055) | (2,137) |
| Net increase/(decrease) in cash and cash equivalents | 3,277 | (1,031) | 2,246 | 1,837 | 5,621 |
| Cash and cash equivalents at 1 January | 20,141 | 3,928 | 24,069 | 15,564 | 15,564 |
| Effect of exchange rate changes on cash and cash equivalents | (1,511) | (209) | (1,720) | 520 | 2,884 |
| Cash and cash equivalents at 30 June/31 December | 21,907 | 2,688 | 24,595 | 17,921 | 24,069 |
* Cash generated from operations is stated after net purchases/sales of investment property, loans and financial investments
Of the total cash and cash equivalents, £192 million (30 June 2008: £411 million; 31 December 2008: £493 million) was classified as held for sale (see note A3 c (ii)).
Cash and cash equivalents in long-term business operations of £21,907 million (30 June 2008: £12,716 million; 31 December 2008: £20,141 million) are primarily held for the benefit of policyholders and so are generally not available for use by the group.
