|
Free cash flow is defined as the net
increase in cash and cash equivalents less cash flows from financing activities
(excluding interest paid) and less the acquisition or disposal of group undertakings.
It is a non-GAAP measure since it is not defined in IFRS but it is a key indicator
used by management in order to assess operational performance.
| |
2006 |
|
2005 |
|
| |
£m |
|
£m |
|
|
|
|
Cash
generated from operations before taxation
|
5,777 |
|
5,906 |
|
|
Income
taxes paid
|
(390 |
) |
(332 |
) |
|
|
|
Net
cash inflow from operating activities
|
5,387 |
|
5,574 |
|
|
Included
in cash flows from investing activities
|
|
|
|
|
|
Net
purchase of property, plant and equipment, computer software
and licences
|
(2,874 |
) |
(2,945 |
) |
|
(Sale)
purchase of non current financial assets
|
(1 |
) |
537 |
|
|
Dividends
received from associates
|
1 |
|
2 |
|
|
Interest
received
|
185 |
|
374 |
|
|
Included
in cash flows from financing activities
|
|
|
|
|
|
Interest
paid
|
(1,086 |
) |
(1,260 |
) |
|
|
|
Free
cash flow
|
1,612 |
|
2,282 |
|
|
|
|
