RBS 2009 Annual Report Download - page 113

111RBS Group Annual Report and Accounts 2009
Business review
Cash flow 2009 2008
£m £m
Net cash flows from operating activities (992) (75,338)
Net cash flows from investing activities 54 16,997
Net cash flows from financing activities 18,791 15,102
Effects of exchange rate changes on cash and cash equivalents (8,592) 29,209
Net increase/(decrease) in cash and cash equivalents 9,261 (14,030)
2009
The major factors contributing to the net cash outflow from operating
activities of £992 million were the net operating loss before tax of
£2,696 million from continuing and discontinued operations, the
decrease of £15,964 million in operating liabilities less operating assets,
partly offset by the elimination of foreign exchange differences of
£12,217 million and other items of £5,451 million.
Net cash flows from investing activities of £54 million relate to the net
sales and maturities of securities of £2,899 million and a net cash inflow
of £105 million in respect of other acquisitions and disposals less the
net cash outflow on disposals of property, plant and equipment of
£2,950 million.
Net cash flows from financing activities of £18,791 million primarily
arose from the capital raised from the issue of B Shares of £25,101
million, the placing and open offer of £5,274 million and the issue of
subordinated liabilities of £2,309 million. This was offset in part by the
cash outflow on repayment of subordinated liabilities of £5,145 million,
redemption of preference shares of £5,000 million, interest paid on
subordinated liabilities of £1,746 million and dividends paid of £1,248
million.
2008
The major factors contributing to the net cash outflow from operating
activities of £75,338 million were the net operating loss before tax of
£36,628 million from continuing and discontinued operations, the
decrease of £42,219 million in operating liabilities less operating assets,
and the elimination of foreign exchange differences of £41,874 million,
partly offset by the write down of goodwill and other intangible assets,
£32,581 million and other non-cash items, £8,772 million.
Proceeds on disposal of discontinued activities of £20,113 million was
the largest element giving rise to net cash flows of investing activities of
£16,997 million. Outflow from net purchases of securities of £1,839
million and net disposals of property, plant and equipment, £3,529
million less the net cash inflow of £2,252 million in respect of other
acquisitions and disposals represented the other principle factors.
Net cash flows from financing activities of £15,102 million primarily
arose from the capital raised from the placing and open offer of
£19,741 million and the rights issue of £12,000 million, the issue of
subordinated liabilities of £2,413 million and proceeds of minority
interests, £1,427 million. This was offset in part by the cash outflow on
redemption of minority interests of £13,579 million, repayment of
subordinated liabilities of £1,727 million, dividends paid of £3,193
million and interest paid on subordinated liabilities of £1,967 million.