CONSOLIDATED STATEMENT OF CASH FLOWS

Year ended 31 December 2012

	Note	Year ended 31 December 2012 €'000	Year ended 31 December 2011 €'000
Cash flow from operating activities

Loans and receivables
Value date to transfer date cash received¹
Receipts from loans acquired		202,587	97,612
Receipts from derivatives and fees acquired		2,394	719
Receipts from borrowers since acquisition²
Receipts from loans acquired		4,187,780	4,866,619
Receipts from derivatives acquired		82,965	103,481
Funds advanced to borrowers	19	(308,409)	(303,981)
AIB Tranche 9 partial settlement	15	511	7,574
Fee income on loans with borrowers	5	29,650	8,503
Net cash provided by loans and receivables		4,197,478	4,780,527

Derivatives
Cash inflow on foreign currency derivatives	10	17,551,528	23,878,756
Cash outflow on foreign currency derivatives	10	(17,806,902)	(23,767,663)
Net cash outflow on derivatives where hedge accounting is applied		(51,741)	(82,245)
Net cash outflow on other derivatives		(55,439)	(34,504)
Net cash used in derivative activities		(362,554)	(5,656)

Other operating cashflows
Payments to suppliers of services		(145,887)	(99,458)
Payments for due diligence costs		(8,742)	(43,259)
Interest paid on senior debt securities in issue		(443,557)	(322,687)
Interest received on cash and cash equivalents		26,438	14,830
Dividend paid by NAMAIL	14	(3,457)	(5,093)
Payments of corporation tax by NAMAIL		(565)	(1,441)
Amounts pledged as collateral with NTMA	15	(1,150,000)	-
Interest paid on advance from Central Fund		-	(474)
Fee income received on IBRC short term facility	5	14,628	-
Net cash used in other operating activities		(1,711,142)	(457,582)

Net cash provided by operating activities		2,123,782	4,317,289

¹ Value date to transfer date cash received represents the net cash received on loans acquired by the Group from Participating Institutions in respect of the period between the loan valuation date and the loan transfer date. The net cash received represents disposal, non disposal and borrower derivative cash received less approved qualifying advances and a funding cost in respect of the acquired loans. This amount is settled net with Participating Institutions following completion of due dilgence of assets transferred.
² Includes non-disposal cash receipts of €1.45 billion (2011: €1.34 billion), proceeds from the disposal of collateral secured against loans and receivables of €2.3 billion (2011: €2.7 billion) and proceeds from the sale of loans of €0.5 billion (2011: €0.9 billion).

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	Note	Year ended 31 December 2012 €'000	Year ended 31 December 2011 €'000
Cash flow from investing activities
Purchase of available for sale assets		(563,414)	(816,367)
Sale of available for sale assets		827,001	311,546
Net cash provided by / (used in) investing activities		263,587	(504,821)

Cash flow from financing activities
Redemption of senior debt securities	28	(3,500,000)	(1,250,000)
Repayment of loan to the Central Fund	32	-	(49,000)
Net cash used in financing activities		(3,500,000)	(1,299,000)

Cash and cash equivalents held at the beginning of the year	15	3,346,986	836,739
Net cash provided by operating activities		2,123,782	4,317,289
Net cash provided by / (used in) investing activities		263,587	(504,821)
Net cash used in financing activities		(3,500,000)	(1,299,000)
Effects of exchange-rate changes on cash and cash equivalents		1,467	(3,221)
Total cash and cash equivalents held at the end of the year	15	2,235,822	3,346,986

Financial assets and cash collateral
Financial assets available for sale	16	257,932	499,747
Cash collateral placed with the NTMA	15	1,150,000	-

Total		3,643,754	3,846,733

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