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elation to inventory levels and receivables, keeping our level of working capital in line with the level of<br />
trading activity.<br />
Cash Flow Summary<br />
Cash generated from operation before post<br />
2010 2009<br />
(US$ million)<br />
2008<br />
employment benefits ........................ 810 494 711<br />
Post employment benefits ....................... (73) (62) (88)<br />
Cash generated from operations (1) ................ 737 432 623<br />
Movement in working capital ..................... (5) 152 1<br />
Net finance costs paid .......................... (194) (81) (126)<br />
Taxation paid ................................. (9) (5) (70)<br />
Dividends paid ............................... — (37) (73)<br />
Cash retained from operating activities ............ 529 461 355<br />
Investing activities (2) ............................ (188) (762) (494)<br />
Cash generated / (utilized) ...................... 341 (301) (139)<br />
(1) Cash generated by operations is calculated by adding to the profit/(loss) for the period, net finance costs, taxation<br />
and various non-cash items as set out in the table below. For further information, see note 23 to our Group Annual<br />
Financial Statements included elsewhere in this Annual Report.<br />
(2) Investing activities in fiscal 2009 includes spending of US$ 590 million on the acquisition of the Acquired<br />
Business.<br />
Total non-cash items (as set out in the table below) in fiscal 2010 amounted to US$ 469 million,<br />
compared to US$ 567 million in fiscal 2009 and compared to US$ 397 million in fiscal 2008.<br />
Non-cash Items 2010 2009 2008<br />
(US$ million)<br />
Depreciation .................................... 411 396 374<br />
Fellings ....................................... 71 69 80<br />
Asset Impairments (reversals) & closures ............... (10) 79 119<br />
Plantation fair value—price ......................... (31) 67 (120)<br />
Plantation fair value—volume ........................ (67) (73) (70)<br />
Other non-cash items (1) ............................ 95 29 14<br />
Total ......................................... 469 567 397<br />
(1) Other non-cash items consist mainly of restructuring provisions and in fiscal 2010 non-cash BEE charges.<br />
Cash generated from operations<br />
Cash generated from operations was US$ 737 million in fiscal 2010 compared to US$ 432 million in<br />
fiscal 2009. The increase was mainly due to an increase in profit of US$ 243 million.<br />
Cash generated by operations was US$ 432 million in fiscal 2009 compared to US$ 623 million in<br />
fiscal 2008. The reduction was mainly due to a decrease in profit of US$ 279 million.<br />
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