Consolidated Statement of Cash Flows For the year ended 31 December 2018 (thousands of Georgian Lari) Notes 2018 2017* 2016* Cash flows from operating activities Interest received 1,294,465 1,123,601 920,655 Interest paid (570,989) (458,859) (418,193) Fees and commissions received 255,143 187,459 168,169 Fees and commissions paid (75,776) (61,276) (47,690) Net cash inflow (outflow) from real estate 5,191 3,364 (13,301) Net realised gain from trading securities – – 1,847 Net realised gain from foreign currencies 92,223 65,948 64,334 Recoveries of loans to customers previously written off 10 35,306 52,792 36,244 Other income received (expense paid) 42,535 (12,857) (48,068) Salaries and other employee benefits paid (165,577) (152,065) (134,359) General and administrative and operating expenses paid (122,209) (78,976) (41,074) Cash flows from operating activities from continuing operations before changes in operating assets and liabilities 790,312 669,131 488,564 Net (increase) decrease in operating assets Amounts due from credit institutions (50,757) (222,444) (233,637) Loans to customers and Finance lease receivables (1,667,624) (1,471,696) (992,925) Prepayments and other assets (54,563) (15,566) 40,770 Net increase (decrease) in operating liabilities Amounts due to credit institutions 459,813 (436,526) 1,159,979 Debt securities issued 46,044 590,485 72,064 Client deposits and notes 885,666 1,593,540 212,483 Other liabilities (4,866) (19,304) 10,349 Net cash flows from operating activities from continuing operations before income tax 404,025 687,620 757,647 Income tax paid (64,578) (9,775) (31,300) Net cash flows from operating activities from continuing operations 339,447 677,845 726,347 Net cash flows from operating activities of discontinued operations 260,165 259,305 407,212 Net cash flows from operating activities 599,612 937,150 1,133,559 Cash flows used in investing activities Repayment of remaining holdback amounts from previous year acquisitions – – (9,248) Net purchase of investment securities (400,366) (361,777) (314,252) Purchase of investments in associates – – (819) Proceeds from sale of investment properties 72,864 11,067 4,455 Proceeds from sale of property and equipment and intangible assets 2,948 1,868 1,933 Purchase of property and equipment and intangible assets (95,096) (110,463) (73,128) Dividends received – – 3,230 Net cash flows used in investing activities from continuing operations (419,650) (459,305) (387,829) Net cash flows used in investing activities of discontinued operations (283,621) (310,099) (415,694) Net cash flows used in investing activities (703,271) (769,404) (803,523) * Certain amounts do not correspond to the 2017 consolidated financial statement as they reflect the adjustments made to discontinued operations as described in Note 5. The accompanying Notes on pages 177 to 283 are an integral part of these financial statements. 172 Annual Report 2018Bank of Georgia Group PLC