HSBC 2009 Annual Report Download - page 358

HSBC HOLDINGS PLC
Financial Statements (continued)
Consolidated statement of cash flows / Consolidated statement of changes in equity
356
Consolidated statement of cash flows for the year ended 31 December 2009
2009 2008 2007
Notes US$m US$m US$m
Cash flows from operating activities
Profit before tax ............................................................................................ 7,079 9,307 24,212
Adjustments for:
– non-cash items included in profit before tax ........................................ 38 31,384 41,305 21,701
– change in operating assets ..................................................................... 38 (20,803) 18,123 (176,538)
– change in operating liabilities ............................................................... 38 14,645 (63,413) 250,095
– elimination of exchange differences2 .................................................... (19,024) 36,132 (18,602)
– net gain from investing activities .......................................................... (1,910) (4,195) (2,209)
– share of profits in associates and joint ventures ................................... (1,781) (1,661) (1,503)
– dividends received from associates ....................................................... 414 655 363
– contributions paid to defined benefit plans ........................................... (974) (719) (1,393)
– tax paid .................................................................................................. (2,132) (5,114) (5,088)
Net cash generated from operating activities ............................................... 6,898 30,420 91,038
Cash flows from investing activities
Purchase of financial investments ................................................................ (304,629) (277,023) (260,980)
Proceeds from the sale and maturity of financial investments .................... 241,341 223,138 238,647
Purchase of property, plant and equipment .................................................. (2,000) (2,985) (2,720)
Proceeds from the sale of property, plant and equipment ............................ 4,701 2,467 3,178
Proceeds from the sale of loan portfolios ..................................................... 4,852 9,941 1,665
Net purchase of intangible assets ................................................................. (956) (1,169) (950)
Net cash inflow/(outflow) from acquisition of or increase in stake
of subsidiaries ........................................................................................... (677) 1,313 (623)
Net cash inflow from disposal of subsidiaries ............................................. 45 2,979 187
Net cash outflow from acquisition of or increase in stake
of associates .............................................................................................. (62) (355) (351)
Net cash inflow from the consolidation of funds ......................................... – 16,500 1,600
Proceeds from disposal of associates and joint ventures ............................. 308 101 69
Net cash used in investing activities ............................................................ (57,077) (25,093) (20,278)
Cash flows from financing activities
Issue of ordinary share capital ...................................................................... 18,398 467 474
– rights issue ............................................................................................. 18,326 – –
– other ....................................................................................................... 72 467 474
Issue of other equity instruments ................................................................. – 2,133 –
Net (purchases)/sales of own shares for market-making and
investment purposes ................................................................................. (176) (194) 126
Purchases of own shares to meet share awards and share
option awards ........................................................................................... (51) (808) (636)
On exercise of share options ........................................................................ 12 27 104
Subordinated loan capital issued .................................................................. 2,959 7,094 5,705
Subordinated loan capital repaid .................................................................. (4,637) (350) (689)
Dividends paid to shareholders of the parent company ............................... (4,264) (7,211) (6,003)
Dividends paid to minority interests ............................................................ (702) (714) (718)
Dividends paid to holders of other equity instruments ................................ (269) (92) –
Net cash generated from/(used in) financing activities ................................ 11,270 352 (1,637)
Net increase/(decrease) in cash and cash equivalents ............................. (38,909) 5,679 69,123
Cash and cash equivalents at 1 January ....................................................... 278,872 297,009 215,486
Exchange differences in respect of cash and cash equivalents .................... 10,803 (23,816) 12,400
Cash and cash equivalents at 31 December ................................................. 38 250,766 278,872 297,009
For footnote, see page 364.
The accompanying notes on pages 365
to 471, the audited sections of ‘Report of the Directors: Risk’ on pages 196 to 293, ‘Critical
accounting policies’ on pages 61 to 65 and the audited sections of ‘Report of the Directors: Impact of Market Turmoil’ on pages 151 to
195 form an integral part of these financial statements.