ConsolidatedStatementsofCashFlows For the years ended December 31, (Canadian $ in millions) 2022 2021 Operating activities Net income $ 7,182 $ 6,912 Adjustments: Increase (decrease) in insurance contract liabilities (33,413) 10,719 Increase (decrease) in investment contract liabilities 41 44 (Increase) decrease in reinsurance assets excluding coinsurance transactions (note 7) 159 754 Amortization of (premium) discount on invested assets (32) 181 Other amortization 538 529 Net realized and unrealized (gains) losses and impairment on assets 47,270 4,824 Gain on U.S. variable annuity reinsurance transaction (pre-tax) (note 7) (1,070) – Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) (notes 3 & 6) (95) – Deferred income tax expense (recovery) 731 (127) Stock option expense 5 9 Cash provided by operating activities before undernoted items 21,316 23,845 Cash decrease due to U.S. variable annuity reinsurance transaction (note 7) (1,377) – Changes in policy related and operating receivables and payables (2,204) (690) Cash provided by (used in) operating activities 17,735 23,155 Investing activities Purchases and mortgage advances (111,768) (120,965) Disposals and repayments 93,407 96,728 Change in investment broker net receivables and payables (67) (186) Net cash increase (decrease) from sale (purchase) of subsidiary (notes 3 & 6) (182) (19) Cash provided by (used in) investing activities (18,610) (24,442) Financing activities Issue of long-term debt, net (note 10) 946 – Redemption of long-term debt (note 10) – (1,250) Redemption of capital instruments (note 11) (1,000) (818) Secured borrowings (note 4(f)) 437 26 Change in repurchase agreements and securities sold but not yet purchased (551) 186 Change in deposits from Bank clients, net 1,703 (164) Lease payments (120) (124) Shareholders’ dividends and other equity distributions (2,787) (2,500) Common shares repurchased (note 12) (1,884) – Common shares issued, net (note 12) 23 51 Preferred shares and other equity issued, net (note 12) 990 3,171 Preferred shares redeemed, net (note 12) (711) (612) Contributions from (distributions to, acquisition of) non-controlling interests, net (51) (13) Cash provided by (used in) financing activities (3,005) (2,047) Cash and short-term securities Increase (decrease) during the year (3,880) (3,334) Effect of foreign exchange rate changes on cash and short-term securities 585 (319) Balance, beginning of year 21,930 25,583 Balance, December 31 18,635 21,930 Cash and short-term securities Beginning of year Gross cash and short-term securities 22,594 26,167 Net payments in transit, included in other liabilities (664) (584) Net cash and short-term securities, January 1 21,930 25,583 End of year Gross cash and short-term securities 19,153 22,594 Net payments in transit, included in other liabilities (518) (664) Net cash and short-term securities, December 31 $ 18,635 $ 21,930 Supplemental disclosures on cash flow information Interest received $ 12,133 $ 11,376 Interest paid 1,248 981 Income taxes paid 1,238 571 TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements. 144 | 2022AnnualReport | ConsolidatedFinancialStatements