RBS 2007 Annual Report Download - page 125

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RBS Group • Annual Report and Accounts 2007
Financial statements
Cash flow statements for the year ended 31 December 2007
Group Company
2007 2006 2005 2007 2006 2005
Note £m £m £m £m £m £m
Operating activities
Operating profit before tax 9,900 9,186 7,936 2,372 3,486 1,932
Adjustments for:
Depreciation and amortisation 1,970 1,678 1,825 ———
Interest on subordinated liabilities 1,542 1,386 1,271 470 520 583
Charge for defined benefit pension schemes 489 580 462 ———
Cash contribution to defined benefit pension schemes (599) (536) (452) ———
Elimination of foreign exchange differences (10,282) 4,516 (3,060) (58) (22) (30)
Other non-cash items (3,235) (1,120) (1,412) 118 (104)
Net cash (outflow)/inflow from trading activities (215) 15,690 6,570 2,785 4,002 2,381
Changes in operating assets and liabilities 28,261 3,980 (519) 15,562 (508) 2,050
Net cash flows from operating activities before tax 28,046 19,670 6,051 18,347 3,494 4,431
Income taxes (paid)/received (2,442) (2,229) (1,911) 6154 (18)
Net cash flows from operating activities 34 25,604 17,441 4,140 18,353 3,648 4,413
Investing activities
Sale and maturity of securities 63,007 27,126 39,472 ———
Purchase of securities (61,020) (19,126) (39,196) ———
Investment in subsidiaries — ——(18,510) (1,097) (2,961)
Disposal of subsidiaries — —— 6——
Sale of property, plant and equipment 5,786 2,990 2,220 ———
Purchase of property, plant and equipment (5,080) (4,282) (4,812) ———
Discontinued activities (334) —————
Net investment in business interests and intangible assets 35 13,640 (63) (296) ———
Loans to subsidiaries — ———— (337)
Repayments from subsidiaries — ——469 547 1,183
Net cash flows from investing activities 15,999 6,645 (2,612) (18,035) (550) (2,115)
Financing activities
Issue of ordinary shares 77 104 163 77 104 163
Issue of other equity interests 3,600 671 1,649 3,600 671 1,649
Issue of paid up equity 1,073 ——1,073 ——
Issue of subordinated liabilities 1,018 3,027 1,234 —399 337
Proceeds of minority interests issued 31,095 1,354 1,264 ———
Redemption of minority interests (545) (81) (121) ———
Repurchase of ordinary shares — (991) — —(991) —
Shares purchased by employee trusts (65) (254) — ———
Shares issued under employee share schemes 79 108 — —7—
Repayment of subordinated liabilities (1,708) (1,318) (1,553) (469) (547) (1,183)
Dividends paid (3,411) (2,727) (2,007) (3,290) (2,661) (1,912)
Interest on subordinated liabilities (1,522) (1,409) (1,332) (455) (497) (577)
Net cash flows from financing activities 29,691 (1,516) (703) 536 (3,515) (1,523)
Effects of exchange rate changes on cash and cash equivalents 6,010 (3,468) 1,703 62 (52) 42
Net increase/(decrease) in cash and cash equivalents 77,304 19,102 2,528 916 (469) 817
Cash and cash equivalents 1 January 71,651 52,549 50,021 657 1,126 309
Cash and cash equivalents 31 December 148,955 71,651 52,549 1,573 657 1,126