CONSOLIDATED STATEMENTS OF CASH FLOWS (thousands of dollars) YEARS ENDED DECEMBER 31, 2004 AND 2003 TORSTAR CORPORATION (See accompanying notes) 2004 2003 Cash was provided by (used in) Operating activities $178,598 $162,976 Investing activities (62,623) (95,519) Financing activities (124,557) (53,101) Increase (decrease) in cash (8,582) 14,356 Effect of exchange rate changes (1,020) (1,473) Cash, beginning of year 50,417 37,534 Cash, end of year $40,815 $50,417 Operating activities: Net income $112,703 $123,515 Depreciation 54,323 53,374 Amortization 2,558 2,430 Future income taxes 8,967 23,076 Income of associated businesses (496) (134) Other (note 15) (14,244) (15,619) 163,811 186,642 Decrease (increase) in non-cash working capital 14,787 (23,666) Cash provided by operating activities $178,598 $162,976 Investing activities: Additions to property, plant and equipment ($45,584) ($59,020) Acquisitions (note 11) (16,093) (51,493) Proceeds on sale of businesses (note 14) 15,881 Investment in associated business (note 4) (1,413) Other 467 (887) Cash used in investing activities ($62,623) ($95,519) Financing activities: Repayment of medium term notes ($150,000) ($102,384) Issuance of medium term notes 45,000 Issuance of commercial paper debt (net) 88,496 21,355 Dividends paid (54,319) (47,509) Exercise of stock options (note 8(b)) 22,104 26,687 Purchase of shares for cancellation (note 8(c)) (34,976) Other 4,138 3,750 Cash used in financing activities ($124,557) ($53,101) Cash represented by: Cash and cash equivalents $47,229 $53,660 Bank overdraft (6,414) (3,243) $40,815 $50,417 46 TORSTAR 2004