Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	3rd Quarter 2008	3rd Quarter 2009	First Nine Months 2008	First Nine Months 2009
	€ million	€ million	€ million	€ million
Income from continuing operations after taxes	275	249	1,618	1,203
Income taxes	133	135	701	549
Non-operating result	276	262	813	888
Income taxes paid or accrued	(197)	(131)	(913)	(696)
Depreciation and amortization	650	680	2,031	2,056
Change in pension provisions	(5)	(24)	(185)	(238)
(Gains) losses on retirements of noncurrent assets	(12)	1	(78)	(133)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	51	0	157	0
Gross cash flow	1,171	1,172	4,144	3,629

Decrease (increase) in inventories	(299)	(48)	(563)	327
Decrease (increase) in trade accounts receivable	377	427	(697)	(371)
(Decrease) increase in trade accounts payable	(78)	132	(143)	(259)
Changes in other working capital, other non-cash items	63	(166)	(90)	283

Net cash provided by (used in) operating activities (net cash flow), continuing operations	1,234	1,517	2,651	3,609
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)	1,234	1,517	2,651	3,609

Cash outflows for additions to property, plant, equipment and intangible assets	(492)	(420)	(1,127)	(1,080)
Cash inflows from sales of property, plant, equipment and other assets	41	24	148	47
Cash inflows from (outflows for) divestitures	(3)	6	(52)	57
Cash inflows from (outflows for) noncurrent financial assets	25	32	73	116
Cash outflows for acquisitions less acquired cash	(367)	(6)	(919)	(48)
Interest and dividends received	126	120	424	435
Cash inflows from (outflows for) current financial assets	3	6	1	(1)
Net cash provided by (used in) investing activities (total)	(667)	(238)	(1,452)	(474)

Capital contributions	0	0	0	0
Dividend payments and withholding tax on dividends	(2)	0	(1,042)	(973)
Issuances of debt	103	97	1,102	2,649
Retirements of debt	(166)	(346)	(465)	(3,224)
Interest paid	(267)	(259)	(1,023)	(1,078)
Net cash provided by (used in) financing activities (total)	(332)	(508)	(1,428)	(2,626)

Change in cash and cash equivalents due to business activities (total)	235	771	(229)	509

Cash and cash equivalents at beginning of period	2,058	1,834	2,531	2,094

Change in cash and cash equivalents due to changes in scope of consolidation	0	0	2	3
Change in cash and cash equivalents due to exchange rate movements	(12)	(10)	(23)	(11)

Cash and cash equivalents at end of period	2,281	2,595	2,281	2,595