Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	3rd Quarter 2007	3rd Quarter 2008	First Nine Months 2007	First Nine Months 2008
€ million
Income from continuing operations after taxes	1,180	275	2,249	1,618
Income taxes	(769)	133	(221)	701
Non-operating result	266	276	741	813
Income taxes paid	(201)	(197)	(886)	(913)
Depreciation and amortization	762	650	2,016	2,031
Change in pension provisions	(116)	(5)	(298)	(185)
(Gains) losses on retirements of noncurrent assets	(8)	(12)	(2)	(78)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	51	51	164	157
Gross cash flow	1,165	1,171	3,763	4,144

Decrease (increase) in inventories	(107)	(299)	(282)	(563)
Decrease (increase) in trade accounts receivable	397	377	(666)	(697)
(Decrease) increase in trade accounts payable	1	(78)	(97)	(143)
Changes in other working capital, other non-cash items	167	63	96	(90)
Net cash provided by (used in) operating activities (net cash flow), continuing operations	1,623	1,234	2,814	2,651
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	(2)	0	0	0
Net cash provided by (used in) operating activities (net cash flow) (total)	1,621	1,234	2,814	2,651

Cash outflows for additions to property, plant, equipment and intangible assets	(482)	(492)	(1,123)	(1,127)
Cash inflows from sales of property, plant, equipment and other assets	89	41	120	148
Cash inflows (outflows) from divestitures less divested cash	(111)	(3)	4,792	(52)
Cash inflows (outflows) for acquisitions less acquired cash	(198)	(367)	(455)	(919)
Cash inflows (outflows) from noncurrent financial assets	1	25	9	73
Interest and dividends received	96	126	565	424
Cash (inflows) outflows from current financial assets	2	3	25	1
Net cash provided by (used in) investing activities (total)	(603)	(667)	3,933	(1,452)

Capital contributions	-	-	-	-
Bayer AG dividend and dividend payments to minority stockholders	0	(2)	(775)	(1,042)
Issuances of debt	239	103	1,842	1,102
Retirements of debt	(1,555)	(166)	(7,051)	(465)
Interest paid	(222)	(267)	(1,207)	(1,023)
Net cash provided by (used in) financing activities (total)	(1,538)	(332)	(7,191)	(1,428)

Change in cash and cash equivalents due to business activities (total)	(520)	235	(444)	(229)

Cash and cash equivalents at beginning of period	2,980	2,058	2,915	2,531

Change in cash and cash equivalents due to changes in scope of consolidation	1	0	(3)	2
Change in cash and cash equivalents due to exchange rate movements	(80)	(12)	(87)	(23)

Cash and cash equivalents at end of period	2,381	2,281	2,381	2,281