Aviva 2002 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2002 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

47 – Cash flow statement
The cash flow statement reflects long-term business activities only to the extent that cash is transferred between long-term and
non-long-term operations. In the following analyses, long-term business assets and liabilities shown in the consolidated balance sheet
have therefore been excluded.
(a) The reconciliation of (loss)/profit on ordinary activities to net cash inflow from operating activities is:
2002 2001
£m £m
(Loss)/profit on ordinary activities before tax, excluding the results of joint ventures and associated undertakings (283) 512
Add back:
Integration costs –59
Financial Services Compensation Scheme levy –31
(Loss)/profit on ordinary activities before tax, excluding exceptional items (283) 602
Adjustments for financing expense and items not involving movements of cash:
Depreciation of tangible fixed assets 82 136
Amortisation of goodwill 135 87
Amortisation of acquired additional value of in-force long-term business 139 64
Increase/(decrease) in general business underwriting liabilities and provisions 461 (347)
Realised and unrealised losses on investments 894 621
Net loss/(profit) arising on the disposal of subsidiary undertakings 4(287)
Decrease/(increase) in deferred acquisition costs (30) 28
Movement in banking and stockbroking assets and liabilities 40 (398)
Movement in other assets/liabilities (293) 676
Profits not yet transferred from long-term business funds (412) (702)
Loan interest expense 264 217
1,284 95
Net cash inflow from operating activities, excluding exceptional items and merger transaction costs 1,001 697
(b) Analysis of cash flows in respect of the acquisition and disposal of subsidiary and associated undertakings is:
2002 2001
£m £m
Cash consideration for subsidiary undertakings acquired (55) (603)
Cash proceeds from disposal of subsidiary undertakings 381 1,732
Net cash balances acquired/(divested) with subsidiary undertakings (85) (276)
241 853
(c) Changes in financing during the year were:
Share capital Borrowings
2002 2001 2002 2001
£m £m £m £m
Issue of ordinary share capital 11 29 ––
New borrowings drawn down, net of expenses ––1,466 10,509
Repayment of borrowings ––(1,534) (9,039)
Net cash inflow 11 29 (68) 1,470
Foreign exchange rate movements ––60 (24)
Loans repaid for non-cash consideration ––(299) –
Amortisation of discounts and other non-cash items ––1–
Changes in financing 11 29 (306) 1,446
Balance at 1 January
Share capital 3,843 3,814
External borrowings 3,819 2,592
Non-recourse funding 219 –
3,843 3,814 4,038 2,592
Balance at 31 December
Share capital 3,854 3,843
External borrowings 3,254 3,819
Non-recourse funding 478 219
3,854 3,843 3,732 4,038
Share capital is represented by:
Ordinary share capital 564 564
Preference share capital 200 200
Share premium account 1,094 1,083
Merger reserve in respect of share capital 1,985 1,967
3,843 3,814
Notes to the accounts continued
88 Aviva plc
Annual report + accounts 2002