Bayer AG - Stockholders' Newsletter Third Quarter 2007 - Bayer Group Consolidated Statements of Cash Flows

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Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	3rd Quarter 2006	3rd Quarter 2007	First Nine Months 2006	First Nine Months 2007
€ million
Income from continuing operations after taxes	254	1,180	1,267	2,249
Income taxes	109	(769)	584	(221)
Non-operating result	267	266	705	741
Income taxes paid	(233)	(201)	(733)	(886)
Depreciation and amortization	494	762	1,273	2,016
Change in pension provisions	(3)	(116)	(183)	(298)
(Gains) losses on retirements of noncurrent assets	(28)	(8)	(36)	(2)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	275	51	275	164
Gross cash flow	1,135	1,165	3,152	3,763

Decrease (increase) in inventories	(214)	(107)	(317)	(282)
Decrease (increase) in trade accounts receivable	177	397	(687)	(666)
(Decrease) increase in trade accounts payable	(12)	1	(283)	(97)
Changes in other working capital, other non-cash items	429	167	570	96
Net cash provided by (used in) operating activities (net cash flow), continuing operations	1,515	1,623	2,435	2,814
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	(20)	(2)	190	0
Net cash provided by (used in) operating activities (net cash flow) (total)	1,495	1,621	2,625	2,814

Cash outflows for property, plant, equipment and intangible assets	(325)	(482)	(1,084)	(1,123)
Cash inflows from sales of property, plant, equipment and other assets	43	89	87	120
Cash inflows from divestitures less divested cash	3	(111)	42	4,792
Cash outflows for acquisitions less acquired cash	(1,164)	(198)	(15,294)	(455)
Cash inflows from noncurrent financial assets	(6)	1	63	9
Interest and dividends received	80	96	562	565
Cash inflows/outflows from current financial assets	56	2	283	25
Net cash provided by (used in) investing activities (total)	(1,313)	(603)	(15,341)	3,933

Capital contributions	1,177	0	1,177	0
Bayer AG dividend, dividend payments to minority stockholders, reimbursements of advance capital gains tax payments	(6)	0	(533)	(775)
Issuances of debt	69	239	13,831	1,842
Retirements of debt	(740)	(1,555)	(1,153)	(7,051)
Interest paid	(265)	(222)	(954)	(1,207)
Net cash provided by (used in) financing activities (total)	235	(1,538)	12,368	(7,191)

Change in cash and cash equivalents due to business activities (total)	417	(520)	(348)	(444)

Cash and cash equivalents at beginning of period	2,491	2,980	3,290	2,915

Change in cash and cash equivalents due to changes in scope of consolidation	0	1	(2)	(3)
Change in cash and cash equivalents due to exchange rate movements	(1)	(80)	(33)	(87)

Cash and cash equivalents at end of period	2,907	2,381	2,907	2,381