BT 2011 Annual Report Download - page 106

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103BT GROUP PLC ANNUAL REPORT & FORM 20-F 2011
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS
GROUP CASH FLOW STATEMENT
2011 2010 2009
Year ended 31 March Note £m £m £m
Cash flow from operating activities
Profit (loss) before taxationa1,717 1,007 (244)
Depreciation and amortisation 2,979 3,039 2,890
(Profit) loss on disposal of associates and businesses (42) 10 13
Net finance expense 924 1,158 620
Other non cash charges 78 77 596
Share of profits of associates and joint ventures (21) (54) (75)
(Increase) decrease in inventories (17) 14 11
Decrease in trade and other receivables 408 524 1,063
(Decrease) in trade and other payables (378) (708) (379)
(Decrease) increase in provisions and other liabilitiesb(873) (591) 439
Cash generated from operationsa4,775 4,476 4,934
Income taxes paid (209) (76) (232)
Income tax repayment for prior years – 425 4
Net cash inflow from operating activities 4,566 4,825 4,706
Cash flow from investing activities
Interest received 29 16 19
Dividends received from associates and joint ventures 7 3 6
Proceeds on disposal of interest in associates 72 – –
Proceeds on disposal of businesses –2–
Acquisition of subsidiaries, net of cash acquired (8) (70) (227)
Proceeds on disposal of current financial assetsc9,267 8,739 6,316
Purchases of current financial assetsc(8,902) (8,985) (6,030)
Purchases of non-current financial assets (18) – –
Proceeds on disposal of property, plant and equipment 15 29 44
Purchases of property, plant and equipment and software (2,645) (2,509) (3,082)
Net cash outflow from investing activities (2,183) (2,775) (2,954)
Cash flow from financing activities
Equity dividends paid (543) (265) (1,221)
Dividends paid to non-controlling interests – – (1)
Interest paid (973) (956) (956)
Repayment of borrowingsd(2,509) (307) (863)
Repayment of finance lease liabilities (11) (24) (16)
Proceeds from finance leases –9–
Net proceeds from (repayment of) commercial paper 69 (697) 606
Proceeds from bank loans 340 522 795
Cash flows from derivatives related to net debt 120 – –
Repurchase of ordinary shares – – (334)
Proceeds on issue of treasury shares 8 4 125
Net cash used in financing activities (3,499) (1,714) (1,865)
Effect of exchange rate changes on cash and cash equivalents (3) (7) 54
Net (decrease) increase in cash and cash equivalents (1,119) 329 (59)
Cash and cash equivalents at the start of the year 1,444 1,115 1,174
Cash and cash equivalents at the end of the year 16 325 1,444 1,115
aThe reconciliation from the loss before taxation of £244m for 2009 to the cash generated from operations of £4,934m for 2009 includes BT Global Services contract and financial review charges of £1,639m,
which were non-cash charges.
bIncludes pension deficit payments of £1,030m (2010: £525m, 2009: £nil).
cPrimarily consists of investment in and redemption of amounts held in liquidity funds.
dIn 2011 the repayment of borrowings includes the impact of hedging. See page 144 for further details.
OVERVIEWBUSINESS REVIEWFINANCIAL REVIEWREPORT OF THE DIRECTORSFINANCIAL STATEMENTSADDITIONAL INFORMATION