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Consolidated statements of cash flows
For the years ended December 31, 2008, 2007 and 2006
| Notes | 2008 | 2007(i) | 2006(i) | |
| US$ '000 | US$ '000 | US$ '000 | ||
| Cash flows from operating activities | ||||
| Profit before taxes from continuing operations | 704,207 | 552,284 | 364,169 | |
| Adjustments | ||||
| Interest expense | 149,111 | 190,410 | 120,510 | |
| Interest and other financial income | (32,922) | (56,378) | (36,383) | |
| Other non operating expenses (income), net | 12 | 55,593 | (10,213) | 1,145 |
| Profit from associates | 17 | (8,706) | (4,400) | (1,483) |
| Operating profit | 867,283 | 671,703 | 447,958 | |
| Adjustments for non-cash items: | ||||
| Depreciation and amortization | 9,10,15,16 | 515,908 | 351,500 | 227,236 |
| Loss on disposal and impairment of property, plant and equipment | 10 | 9,384 | 3,737 | 1,861 |
| Reduction of goodwill | 10, 15 | – | 23,358 | – |
| Gain from sale of subsidiaries and joint ventures, net | 5, 10 | – | – | (8,099) |
| Share-based compensation | 22 | 13,619 | 19,228 | 12,850 |
| Other non cash items | – | 1,000 | – | |
| 1,406,194 | 1,070,526 | 681,806 | ||
| Increase in trade receivables, prepayments and other current assets | (10,935) | (24,046) | (34,887) | |
| Decrease (increase) in inventories | 24,648 | (25,126) | (22,284) | |
| Increase in trade and other payables | 47,905 | 94,003 | 73,019 | |
| Changes to working capital | 61,618 | 44,831 | 15,848 | |
| Interest expense paid | (150,523) | (156,628) | (112,527) | |
| Interest received | 33,852 | 55,830 | 29,075 | |
| Taxes paid | (204,605) | (164,881) | (99,601) | |
| Net cash provided by operating activities | 1,146,536 | 849,678 | 514,601 | |
| Cash flows from investing activities | ||||
| Acquisition of subsidiaries and JV, net of cash acquired | 4 | (532,181) | – | (34,768) |
| Proceeds from disposal of subsidiaries and JV, net of cash disposed | 5 | – | – | (958) |
| Purchase of intangible assets and license renewals | 15 | (114,216) | (25,816) | (40,469) |
| Purchase of property, plant and equipment | 16 | (1,292,486) | (850,600) | (439,462) |
| Proceeds from sale of property, plant and equipment | 19,842 | 3,853 | – | |
| Cash provided by other investing activities | 19,694 | 36,777 | 12,327 | |
| Net cash used by investing activities | (1,899,347) | (835,786) | (503,330) | |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of shares | 3,179 | 33,626 | 14,227 | |
| Proceeds from issuance of debt and other financing | 1,206,607 | 545,351 | 308,785 | |
| Repayment of debt and financing | (664,294) | (315,955) | (191,430) | |
| Payment of dividends | (259,704) | (18,286) | (4,873) | |
| Net cash provided by financing activities | 285,788 | 244,736 | 126,709 | |
| Transfer of cash to assets held for sale | (521) | – | (7,135) | |
| Cash (used) provided by discontinued operations | 6 | (23,776) | 251,209 | (73,289) |
| Exchange (losses) gains on cash and cash equivalents | (9,082) | 8,068 | 2,569 | |
| Net (decrease) increase in cash and cash equivalents | (500,402) | 517,905 | 60,125 | |
| Cash and cash equivalents at the beginning of the year | 1,174,597 | 656,692 | 596,567 | |
| Cash and cash equivalents at the end of the year | 674,195 | 1,174,597 | 656,692 | |
- (i)Comparative information reclassified as a result of the classification of Millicom’s operation in Sierra Leone as discontinued operation (see note 6) and to improve the presentation of the consolidated cash flow statements
The accompanying notes are an integral part of these consolidated financial statements.
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