RBS 2012 Annual Report Download - page 102

Cash flow
2012 2011 2010
£m £m £m
Net cash flows from operating activities (45,113) 3,325 19,291
Net cash flows from investing activities 27,175 14 3,351
Net cash flows from financing activities 2,017 (1,741) (14,380)
Effects of exchange rate changes on cash and cash equivalents (3,893) (1,473) 82
Net (decrease)/increase in cash and cash equivalents (19,814) 125 8,344
2012
The major factors contributing to the net cash outflow from operating
activities of £45,113 million were the decrease of £48,736 million in
operating assets and liabilities, the net operating loss before tax of
£5,276 million from continuing and discontinued operations, loans and
advances written off net of recoveries of £3,925 million and other non-
cash items of £1,491 million. These were partially offset by the
elimination of foreign exchange differences of £7,140 million, provisions
for impairment losses of £5,283 million and depreciation and amortisation
of £1,854 million.
Net cash inflows from investing activities of £27,175 million related to the
net inflows from sales of securities of £26,092 million, the sale of
property, plant and equipment of £2,215 million and investments in
business interests and intangible assets of £352 million offset by net cash
outflows from the purchase of property, plant and equipment of £1,484
million.
Net cash inflows from financing activities of £2,017 million relate primarily
to the issue of subordinated liabilities of £2,093 million and proceeds of
non-controlling interests issued of £889 million partly offset by interest
paid on subordinated liabilities of £746 million and dividends paid of £301
million.
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.
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Business review continued