HSBC 2008 Annual Report Download - page 341

339
HSBC Holdings cash flow statement for the year ended 31 December 2008
2008 2007
Notes US$m US$m
Cash flows from operating activities
Profit before tax ...................................................................................................................... 7,931 9,598
Adjustments for:
– non-cash items included in profit before tax .................................................................. 39 3,619 10
– change in operating assets ............................................................................................... 39 3,263 (4,059)
– change in operating liabilities ......................................................................................... 39 (2,035) 179
– elimination of exchange differences1 .............................................................................. – (26)
– net gain from investing activities .................................................................................... – (12)
– tax (paid)/received ........................................................................................................... (370) 268
Net cash generated from operating activities ......................................................................... 12,408 5,958
Cash flows from investing activities
Purchase of financial investments .......................................................................................... (300) –
Proceeds from sale of financial investments .......................................................................... 349 –
Purchase of property, plant and equipment ............................................................................ (5) –
Net cash outflow from acquisition of or increase in stake of subsidiaries ............................ (14,320) (5,133)
Net cash used in investing activities ...................................................................................... (14,276) (5,133)
Cash flows from financing activities
Issue of ordinary share capital ................................................................................................ 467 474
Issue of other equity instruments ........................................................................................... 2,133 –
Purchases of own shares to meet share awards and share option awards .............................. (54) (96)
On exercise of share options .................................................................................................. 3 72
Subordinated loan capital issued ............................................................................................ 6,705 4,359
Dividends paid ........................................................................................................................ (7,211) (6,003)
Dividends paid to holders of other equity instruments .......................................................... (92) –
Net cash generated from/(used in) financing activities .......................................................... 1,951 (1,194)
Net increase/(decrease) in cash and cash equivalents ....................................................... 83 (369)
Cash and cash equivalents at 1 January ................................................................................. 360 729
Cash and cash equivalents at 31 December ........................................................................... 39 443 360
1 Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line
basis, as details cannot be determined without unreasonable expense.
The accompanying notes on pages 340 to 447, the audited sections of the ‘Report of the Directors: Risk’ on pages 188 to 280, ‘Critical
accounting policies’ on pages 61 to 66 and ‘Impact of Market Turmoil’ on pages 144 to 187 form an integral part of these financial
statements.