Bluescope Steel

Annual Report 2003

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CONSOLIDATED STATEMENT OF CASH FLOWS

As at 30 June 2003

 
Notes
2003
$m
2002
$m
Cash flows from operating activities      
      Receipts from customers  
5,443.3
2,671.8
      Payments to suppliers and employees  
(4,695.3)
(2,511.6)
   
748.0
160.2
      Dividends received  
1.9
-
      Interest received  
2.3
8.3
      Other revenue  
15.0
25.0
      Borrowing costs  
(26.6)
(37.1)
      Income taxes paid  
(29.2)
(21.6)
      Net cash inflow (outflow) from operating activities  
711.4
134.8
       
Cash flows from investing activities  
      Payment for purchase of controlled entities, net of cash acquired*  
(716.1)
(67)
      Payments for property, plant and equipment  
(183.3)
(78.3)
      Payments for investments  
(26.1)
(2)
      Proceeds from sale of property, plant and equipment  
8.6
2.3
      Proceeds from sale or redemption of investments  
35.6
-
      Net cash inflow (outflow) from investing activities  
(881.3)
(145.0)
       
Cash flows from financing activities  
      Proceeds from issues of shares*  
2,045.4
49.5
      Share buyback  
(25.9)
-
      Proceeds from other borrowings  
1,117.1
88.3
      Proceeds from demerger borrowings*  
565.0
-
      Financing of related entities  
-
35.5
      Financing provided by BHP Billiton*  
(1,797.2)
-
      Repayment of other borrowings  
(1,132.0)
(127.0)
      Repayment of demerger borrowings  
(525.0)
-
      Dividends paid
(71.4)
-
      Dividends paid to outside equity interests in controlled entities  
(5.2)
(0.8)
      Net cash inflow (outflow) from financing activities  
170.8
45.5
       
Net increase (decrease) in cash held  
0.9
35.3
Cash at the beginning of the financial year  
98.7
63.0
Effects of exchange rate changes on cash  
(8.6)
0.4
Cash at the end of the financial year  
91.0
98.7

* The current year consolidated cash flows from investing and financing activities include cash flows related to the separation of BlueScope Steel Limited from the BHP Billiton group, including the acquisition of the BHP Steel (AIS) Pty Ltd on 3 July 2002.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes and discussion and analysis.

DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF CASH FLOWS

Cash flows from operating activities

The increase in operating cash flows from the prior period is due primarily to the operating cash flows acquired from the BHP Steel (AIS) Pty Ltd operations together with strong operating results as detailed in the discussion and analysis on statement of financial performance.

Cash flows from investing activities

Major movements in investing cash flows are as follows:

  • The acquisition of BHP Steel (AIS) Pty Ltd from BHP Billiton Ltd for $772 million.
  • Capital expenditure from the acquired BHP Steel (AIS) Pty Ltd operations.
  • Payments for investments including an $11.8 million investment in Manukau International Limited in support of the New Zealand Pension Fund and $10 million for the buy-out of the remaining minority interests in Coated Steel Indonesia.
  • A loan repayment of US$20 million from the North Star BHP Steel joint venture.

Cash flows from financing activities

Major movements in financing cash flows are as follows:

  • Cash flows associated with the separation from the BHP Billiton group including:
    - $2,045 million proceeds from the issue of shares; and
    - $565 million proceeds from the raising of external debt.
    Partly offset by $1,797 million repayment of loans to the BHP Billiton group.
  • The repayment of $540 million of external borrowings in the 12 months as a result of strong operating cash flows.
  • The first interim dividend paid by BlueScope Steel Limited totalling $71.4 million.
  • $25.9 million paid for shares bought back under a scheme to buy back 10% of the issued capital which commenced on 14 March 2003.

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