HSBC 2004 Annual Report Download - page 244

HSBC HOLDINGS PLC
Financial Statements (continued)
242
Consolidated cash flow statement for the year ended 31 December 2004
2004 2003 2002
Notes US$m US$m US$m
Net cash inflow from operating activities ......................................... 40 37,209 22,675 16,426
Dividends received from associated undertakings ............................ 127 108 114
Returns on investments and servicing of finance
Interest paid on finance leases and similar hire purchase contracts (45) (37) (29)
Interest paid on subordinated loan capital ..................................... (915) (882) (870)
Dividends paid to minority interests
– equity .......................................................................................... (664) (514) (480)
– non-equity .................................................................................. (548) (392) (357)
Net cash outflow from returns on investments and servicing of
finance ......................................................................................... (2,172) (1,825) (1,736)
Taxation paid ................................................................................... (3,797) (2,631) (1,371)
Capital expenditure and financial investments
Purchase of investment securities .................................................. (330,917) (218,196) (130,166)
Proceeds from sale and maturities of investment securities ........... 315,437 206,099 122,495
Purchase of tangible fixed assets ................................................... (2,830) (1,981) (1,723)
Proceeds from sale of tangible fixed assets ................................... 371 346 328
Purchase of intangible assets ......................................................... (108) (87) –
Net cash outflow from capital expenditure and financial
investments ................................................................................. (18,047) (13,819) (9,066)
Acquisitions and disposals
Net cash (outflow)/inflow from acquisition of and increase in
stake in subsidiary undertakings ................................................. 25 (2,431) (2,137) 264
Net cash inflow from disposal of subsidiary undertakings ............. 27 556 –
Purchase of interests in associated undertakings and other
participating interests .................................................................. (2,301) (47) (649)
Proceeds from disposal of associated undertakings and other
participating interests .................................................................. 204 3341
Net cash outflow from acquisitions and disposals ........................ (4,501) (1,625) (44)
Equity dividends paid ....................................................................... (4,425) (4,242) (3,609)
Net cash inflow/(outflow) before financing ................................... 4,394 (1,359) 714
Financing
Issue of ordinary share capital ....................................................... 581 845 337
Net purchases and sales of own shares for market making purposes 98 (138) –
Purchases of own shares to meet share awards and share option
awards ........................................................................................ (345) (301) (5)
Own shares released on vesting of share awards and exercise of
options ........................................................................................ 159 181 64
Increase of non equity minority interests ....................................... 1,480 4,104 –
Decrease of non equity minority interests ..................................... –(206) (50)
Subordinated loan capital issued ................................................... 6,021 2,358 4,105
Subordinated loan capital repaid ................................................... (1,740) (1,464) (1,923)
Net cash inflow from financing ...................................................... 41 6,254 5,379 2,528
Increase in cash .............................................................................. 42 10,648 4,020 3,242
The accompanying notes are an integral part of the Consolidated Financial Statements.