Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	2nd Quarter 2008	2nd Quarter 2009	1st Half 2008	1st Half 2009
	€ million	€ million	€ million	€ million
Income from continuing operations after taxes	581	530	1,343	954
Income taxes	262	199	568	414
Non-operating result	262	292	537	626
Income taxes paid or accrued	(352)	(233)	(716)	(565)
Depreciation and amortization	669	688	1,381	1,376
Change in pension provisions	(86)	(97)	(180)	(214)
(Gains) losses on retirements of noncurrent assets	(69)	(131)	(66)	(134)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	55	0	106	0
Gross cash flow	1,322	1,248	2,973	2,457

Decrease (increase) in inventories	(13)	257	(264)	375
Decrease (increase) in trade accounts receivable	(36)	(126)	(1,074)	(798)
(Decrease) increase in trade accounts payable	131	41	(65)	(391)
Changes in other working capital, other non-cash items	(515)	(21)	(153)	449

Net cash provided by (used in) operating activities (net cash flow), continuing operations	889	1,399	1,417	2,092
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	0	0	0	0
Net cash provided by (used in) operating activities (net cash flow), (total)	889	1,399	1,417	2,092

Cash outflows for additions to property, plant, equipment and intangible assets	(347)	(370)	(635)	(660)
Cash inflows from sales of property, plant, equipment and other assets	91	8	107	23
Cash inflows from (outflows for) divestitures	(9)	51	(49)	51
Cash inflows from (outflows for) noncurrent financial assets	21	(53)	48	84
Cash outflows for acquisitions less acquired cash	(306)	(42)	(552)	(42)
Interest and dividends received	224	251	298	315
Cash inflows from (outflows for) current financial assets	5	(3)	(2)	(7)
Net cash provided by (used in) investing activities (total)	(321)	(158)	(785)	(236)

Capital contributions	0	0	0	0
Dividend payments and withholding tax on dividends	(1,031)	(969)	(1,040)	(973)
Issuances of debt	602	191	999	2,552
Retirements of debt	(179)	(2,342)	(299)	(2,878)
Interest paid	(619)	(650)	(756)	(819)
Net cash provided by (used in) financing activities (total)	(1,227)	(3,770)	(1,096)	(2,118)

Change in cash and cash equivalents due to business activities (total)	(659)	(2,529)	(464)	(262)

Cash and cash equivalents at beginning of period	2,717	4,365	2,531	2,094

Change in cash and cash equivalents due to changes in scope of consolidation	2	1	2	3
Change in cash and cash equivalents due to exchange rate movements	(2)	(3)	(11)	(1)

Cash and cash equivalents at end of period	2,058	1,834	2,058	1,834