RBS 2011 Annual Report Download - page 96

94 RBS Group 2011
Cash flow
2011 2010 2009
£m £m £m
Net cash flows from operating activities 3,325 19,291 (992)
Net cash flows from investing activities 14 3,351 54
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
2011
The major factors contributing to the net cash inflow from operating
activities of £3,325 million were the elimination of foreign exchange
differences of £2,702 million, depreciation and amortisation of £1,875
million and inflow from other items of £2,900 million, partially offset by the
net operating loss before tax of £708 million from continuing and
discontinued operations and the decrease of £3,444 million in operating
assets and liabilities.
Net cash inflows from investing activities of £14 million related to the net
inflows from sales of securities of £3,074 million, and sale of property,
plant and equipment of £1,840 million offset by net cash outflows from
investments in business interests and intangible assets of £1,428 million
and from the purchase of property, plant and equipment of £3,472 million.
Net cash outflows from financing activities of £1,741 million relate
primarily to interest on subordinated liabilities of £714 million, repayment
of subordinated liabilities of £627 million and redemption of non-
controlling interests of £382 million.
2010
The major factors contributing to the net cash inflow from operating
activities of £19,291 million were the increase of £17,095 million in
operating assets less operating liabilities, depreciation and amortisation
of £2,220 million and income taxes received of £565 million, partly offset
by the net operating loss before tax of £940 million from continuing and
discontinued operations.
Net cash flows from investing activities of £3,351 million relate to the net
inflows from sales of securities of £4,119 million and investments in
business interests and intangibles of £3,446 million. This was partially
offset by the outflow of £4,112 million from investing activities of
discontinued operations.
Net cash outflow from financing activities of £14,380 million primarily
arose from the redemption of non-controlling interests of £5,282 million,
dividends paid of £4,240 million, repayment of subordinated liabilities of
£1,588 million and the redemption of preference shares of £2,359 million.
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.
Business review continued