Bluescope Steel

Search Annual Report

Annual Report 2004

YOU ARE HERE: Annual Report 2004 > Reports > Concise Financial Report

BlueScope Steel Limited Consolidated Statement of Cash Flows for the year ended 30 June 2004

 
Notes
2004
$M
2003
$M
Cash flows from operating activities      
Receipts from customers  
5,948.3
5,443.3
Payments to suppliers and employees  
(5,099.9)
(4,695.3)
   
848.4
748.0
Dividends received  
1.0
1.9
Interest received  
2.6
2.3
Other revenue  
43.3
15.0
Borrowing costs  
(15.8)
(26.6)
Income taxes paid  
(119.4)
(29.2)
Net cash inflow/(outflow) from operating activities  
760.1
711.4
   
Cash flows from investing activities  
Payment for purchase of controlled entities, net of cash acquired*  
(290.0)
(716.1)
Payments for property, plant and equipment  
(289.1)
(183.3)
Payments for investments  
(5.5)
(26.1)
Proceeds from sale of property, plant and equipment  
11.8
8.6
Proceeds from sale or redemption of investments  
6.5
-
Associate loan receivable repaid (advanced)  
(11.2)
35.6
Net cash inflow/(outflow) from investing activities  
(577.5)
(881.3)
   
Cash flows from financing activities  
Proceeds from issues of shares*  
-
2,045.4
Share buyback  
(259.4)
(25.9)
Employee share plan  
(9.2)
-
Proceeds from demerger borrowings*  
-
565.0
Proceeds from other borrowings  
3,469.5
1,117.1
Financing provided by BHP Billiton*  
-
(1,797.2)
Repayment of borrowings  
(3,114.0)
(1,657.0)
Repayment of finance leases  
(0.3)
-
Dividends paid
(241.6)
(71.4)
Dividends paid to outside equity interests in controlled entities  
(3.0)
(5.2)
Net cash inflow/(outflow) from financing activities  
(158.0)
170.8
   
Net increase/(decrease) in cash held  
24.6
0.9
Cash at the beginning of the financial year  
91.0
98.7
Effects of exchange rate changes on cash  
2.5
(8.6)
Cash at the end of the financial year  
118.1
91.0

* The prior 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 BlueScope Steel (AIS) Pty Ltd Group 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 net operating cash flow primarily reflects an increase in operating cash profits partly offset by an increase in net working capital. The increase in net working capital primarily reflects:
- An increase in receivables mainly due to higher prices and despatch volumes, together with lower utilisation of the Company's receivables securitisation program.
- An increase in inventory in the current year primarily reflecting higher raw material and operating costs, together with a build-up of iron ore stocks and an increase in slab stocks due to the timing of export shipments.
- Lower year-on-year increase in provisions primarily due to significant increases in provisions for the Company's name change, Short Term Incentives, and redundancy entitlements being made in the previous corresponding period.

CASH FLOWS FROM INVESTING ACTIVITIES

The increase in investing cash flow, after excluding the purchase of the AIS Group from BHP Billiton in the previous corresponding period, primarily reflects the following:
- The acquisition of Butler Manufacturing Company.
- Expenditure associated with the Vietnam and China coating line developments, the second Thailand metal coating line and the New Zealand metal coating capacity expansion.
- The receipt of funds loaned to North Star BlueScope Steel in the previous corresponding period.

These were partly offset by lower expenditure on the Sinter Plant emissions project at Port Kembla Steelworks.

CASH FLOWS FROM FINANCING ACTIVITIES

Major financing cash flows are as follows:
- $259.4 million of shares bought back (2003: $25.9 million).
- The payment of $241.6 million in dividends (2003: $71.4 million). This amount includes $53.8 million in special dividend payments.
- During the period the company borrowed an additional $355.5 million of debt. This was primarily due to the acquisition of the Butler Manufacturing Company with operating cash flows covering payments made for the share buyback, capital expenditure, dividends and tax.

In the previous corresponding period, cash flows associated with the separation from the BHP Billiton Group included:
- $2,045.4 million proceeds from the issue of shares;
- ($716.1) million purchase of the AIS Group. This includes the Port Kembla Steelworks, New Zealand Steel and Packaging Products;
- $565.0 million proceeds from the raising of external debt; and
- ($1,797.2) million repayment of loans to the BHP Billiton Group.

Return to Concise Financial Report