RBS 2011 Annual Report Download - page 315

RBS Group 2011 313
Note
2011
£m
2010
£m
2009
£m
Operating activities
Operating loss before tax (766) (399) (2,647)
Operating profit/(loss) before tax on discontinued operations 58 (541) (49)
Adjustments for:
Depreciation and amortisation 1,875 2,220 2,809
Write-down of goodwill and other intangible assets 91 10 363
Interest on subordinated liabilities 740 500 1,490
Charge for defined benefit pension schemes 349 540 659
Pension scheme curtailment gains —(78) (2,148)
Cash contribution to defined benefit pension schemes (1,059) (832) (1,153)
Gain on redemption of own debt (255) (553) (3,790)
Elimination of foreign exchange differences 2,702 (691) 12,217
Other non-cash items 3,218 1,455 7,940
Net cash flows from trading activities 6,953 1,631 15,691
Changes in operating assets and liabilities (3,444) 17,095 (15,964)
Net cash flows from operating activities before tax 3,509 18,726 (273)
Income taxes (paid)/received (184) 565 (719)
Net cash flows from operating activities 33 3,325 19,291 (992)
Investing activities
Sale and maturity of securities 80,093 47,604 76,492
Purchase of securities (77,019) (43,485) (73,593)
Sale of property, plant and equipment 1,840 2,011 1,948
Purchase of property, plant and equipment (3,472) (2,113) (4,898)
Net investment in business interests and intangible assets 34 (1,428) 3,446 105
Transfer out of discontinued operations — (4,112) —
Net cash flows from investing activities 14 3,351 54
Financing activities
Issue of ordinary shares 21 —
Placing and open offer —— 5,274
Issue of B shares —— 25,101
Issue of subordinated liabilities —— 2,309
Proceeds of non-controlling interests issued —559 9
Redemption of paid-in equity —(132) (308)
Redemption of preference shares —(2,359) (5,000)
Redemption of non-controlling interests (382) (5,282) (422)
Disposal/(purchase) of own shares 20 (700) (33)
Repayment of subordinated liabilities (627) (1,588) (5,145)
Dividends paid (40) (4,240) (1,248)
Interest on subordinated liabilities (714) (639) (1,746)
Net cash flows from financing activities (1,741) (14,380) 18,791
Effects of exchange rate changes on cash and cash equivalents (1,473) 82 (8,592)
Net increase in cash and cash equivalents 125 8,344 9,261
Cash and cash equivalents at 1 January 152,530 144,186 134,925
Cash and cash equivalents at 31 December 37 152,655 152,530 144,186
The accompanying notes on pages 327 to 419, the accounting policies on pages 314 to 325 and the audited sections of the Business review: Risk and
balance sheet management on pages 100 to 249 form an integral part of these financial statements.
Consolidated cash flow statement for the year ended 31 December 2011