Cash flow statement 11 Acquisitions 2003 2002 2003 2002 Note £m £m € m € m Purchase of businesses 12 (223) (90) (323) (143) Payment of Harcourt change of control and other non operating liabilities assumed (23) (76) (33) (121) Deferred consideration of prior year acquisitions (12) (18) (18) (29) Total (258) (184) (374) (293) Financing 2003 2002 2003 2002 Note £m £m € m € m Net movement in promissory notes and bank loans (46) (74) (67) (118) Repayment of other loans  (118) (173) (171) (275) Issuance of other loans  94 162 136 258 Repayment of finance leases (12) (10) (17) (16) (82) (95) (119) (151) Issue of ordinary shares 14 30 20 48 Purchase of treasury shares 27 (18) (4) (26) (6) Total (86) (69) (125) (109) The repayment of other loans in 2003 relates primarily to the maturity of a US$125m Private Placement and the redemption of subordinated debentures with a nominal value of US$39m. The issuance of other loans in 2003 relates to term debt raised by a subsidiary of Elsevier Reed Finance BV. 56 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 Reconciliation of operating profit to net cash inflow from operating activities 2003 2002 2003 2002 Note £m £m € m € m Operating profit (before joint ventures) 645 490 935 779 Exceptional charges to operating profit 6 72 99 105 157 Operating profit before exceptional items 717 589 1,040 936 Amortisation of goodwill and intangible assets 442 524 641 833 Depreciation 134 136 194 216 Total non cash items 576 660 835 1,049 Increase in inventories and pre-publication costs (51) (51) (75) (81) Increase in debtors (112) (12) (162) (19) Increase/(decrease) in creditors 33 (32) 48 (50) Movement in working capital (130) (95) (189) (150) Net cash inflow from operating activities before exceptional items 1,163 1,154 1,686 1,835 Payments relating to exceptional items charged to operating profit 6 (98) (119) (142) (190) Net cash inflow from operating activities 1,065 1,035 1,544 1,645 COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS