Telstra 2007 Annual Report Download - page 49

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Telstra Corporation Limited and controlled entities
Full year results and operations review - June 2007
During the year, our cash payments for investments and intangibles amounting to $330 million largely
resulting from the following items:
• $314 million for the acquisition of 55% (on an undiluted basis) of the issued capital of SouFun (net of cash
acquired);
• $13 million for an additional 25% interest in the issued share capital of 1300 Australia Pty Ltd; and
• other minor investments totalling $3 million.
Our cash proceeds from asset sales in the year ended 30 June 2007 included the following:
• sale of property, plant and equipment for cash receipts of $35 million;
• the sale of our investment in the Australian Administrative Services group for consideration of $208
million net of cash disposed;
• the sale of our investment in Platefood for a total consideration of $10 million;
• $9 million of additional proceeds from the sale of Xantic BV in fiscal 2006; and
• sale of Super Buzz~ and SayG’Day~ businesses for cash receipts of $4 million.
A cash payment of $21 million for a price adjustment to New World Mobility has also accrued, representing
an adjustment to the $44 million cash received in fiscal 2006.
Net cash used in financing activities
Our net cash used in financing activities decreased by 49.2% to $2,757 million for the year ended 30 June
2007.
During fiscal 2007 we received $2,304 million from new long term borrowings and repaid $375 million of
maturing long term debt. After short term borrowings, finance leases and hedging activities are added we
experienced a net increase from borrowing and financing activities of $1,760 million, an increase of $1,291
million on last year. This increase was driven by lower net cash produced from the ongoing operations of
the business combined with higher capital cash demands for the transformation investment, partly offset
by an increase in liquidity.
A significant portion of our net financing cash outflows relate to payment of dividends. Dividends paid in
fiscal 2006 were higher than the current fiscal year due to shareholders receiving payment of two additional
special dividend of 6c each per share amounting to $1,492 million.
The increase in finance costs paid was mainly the result of higher average debt levels, in conjunction with
marginally higher interest rates.