HSBC 2011 Annual Report Download - page 284

HSBC HOLDINGS PLC
Financial Statements (continued)
Consolidated statement of cash flows / Consolidated statement of changes in equity
282
Consolidated statement of cash flows for the year ended 31 December 2011
2011 2010 2009
Notes US$m US$m US$m
Cash flows from operating activities
Profit before tax ............................................................................................... 21,872 19,037 7,079
Adjustments for:
– net gain from investing activities ............................................................. (1,196) (1,698) (1,910)
– share of profits in associates and joint ventures ...................................... (3,264) (2,517) (1,781)
– other non-cash items included in profit before tax .................................. 40 19,878 18,887 31,384
– change in operating assets ........................................................................ 40 (7,412) (13,267) (20,803)
– change in operating liabilities .................................................................. 40 44,012 42,272 14,645
– elimination of exchange differences1 ....................................................... 10,840 (1,799) (19,024)
– dividends received from associates .......................................................... 304 441 414
– contributions paid to defined benefit plans .............................................. (1,177) (3,321) (974)
– tax paid ..................................................................................................... (4,095) (2,293) (2,132)
Net cash generated from operating activities .................................................. 79,762 55,742 6,898
Cash flows from investing activities
Purchase of financial investments ................................................................... (319,008) (341,202) (304,629)
Proceeds from the sale and maturity of financial investments ....................... 311,702 321,846 241,341
Purchase of property, plant and equipment ..................................................... (1,505) (2,533) (2,000)
Proceeds from the sale of property, plant and equipment ............................... 300 4,373 4,701
Proceeds from the sale of loan portfolios ........................................................ – 4,243 4,852
Net purchase of intangible assets .................................................................... (1,571) (1,179) (956)
Net cash outflow from acquisition of subsidiaries .......................................... – (86) (677)
Net cash inflow from disposal of subsidiaries ................................................ 216 466 45
Net cash outflow from acquisition of or increase in stake of associates ........ (90) (1,589) (62)
Net cash outflow from the consolidation of funds .......................................... – (19,566) –
Proceeds from disposal of associates and joint ventures ................................ 25 254 308
Net cash used in investing activities ............................................................... (9,931) (34,973) (57,077)
Cash flows from financing activities
Issue of ordinary share capital ......................................................................... 96 180 18,398
– rights issue ................................................................................................ – – 18,326
– other .......................................................................................................... 96 180 72
Issue of other equity instruments .................................................................... – 3,718 –
Net sales/(purchases) of own shares for market-making and
investment purposes .................................................................................... (225) 163 (176)
Net sales/(purchases) of own shares to meet share awards and share
option awards .............................................................................................. (136) 11 (51)
On exercise of share options ........................................................................... – 2 12
Subordinated loan capital issued ..................................................................... 7 4,481 2,959
Subordinated loan capital repaid ..................................................................... (3,777) (2,475) (4,637)
Net cash inflow/(outflow) from change in stake in subsidiaries .................... 104 (229) –
Dividends paid to shareholders of the parent company .................................. (5,014) (3,441) (4,264)
Dividends paid to non-controlling interests .................................................... (568) (595) (702)
Dividends paid to holders of other equity instruments ................................... (573) (413) (269)
Net cash generated from financing activities .................................................. (10,086) 1,402 11,270
Net increase/(decrease) in cash and cash equivalents ................................ 59,745 22,171 (38,909)
Cash and cash equivalents at 1 January .......................................................... 274,076 250,766 278,872
Exchange differences in respect of cash and cash equivalents ....................... (8,372) 1,139 10,803
Cash and cash equivalents at 31 December .................................................... 40 325,449 274,076 250,766
For footnote, see page 290.
The accompanying notes on pages 291 to 413, ‘Critical accounting policies’ on pages 38 to 42, the audited sections of ‘Risk’ on
pages 98 to 210 and the audited sections of ‘Capital’ on pages 211 to 217 form an integral part of these financial statements.