For the year ended 31 December 2003 2003 2002 Note £m £m Net cash outflow from operating activities 11 (1) – Dividends received from Reed Elsevier Group plc 144 135 Returns on investments and servicing of finance – interest received 3 3 Taxation (3) (1) Equity dividends paid (144) (135) Cash (outflow)/inflow before changes in short term investments and financing (1) 2 Financing 1 (2) Issue of ordinary shares 12 16 Increase in net funding balances to Reed Elsevier Group plc group 11 (11) (18) Change in net cash – – REED ELSEVIER PLC Consolidated cash flow statement 78 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003