Bayer AG - Annual Report 2006 - Statements of Cash Flows

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Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	Note	2005	2006
€ million
Income after taxes from continuing operations		1,374	1,526
Income taxes		538	454
Non-operating result		602	782
Income taxes paid		(463)	(763)
Depreciation and amortization		1,608	1,913
Change in pension provisions		(501)	(295)
(Gains) losses on retirements of noncurrent assets		(44)	(133)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)		-	429
Gross cash flow		3,114	3,913

Decrease (increase) in inventories		(130)	(155)
Decrease (increase) in trade accounts receivable		211	(201)
(Decrease) increase in trade accounts payable		(117)	130
Changes in other working capital, other non-cash items		149	241
Net cash provided by (used in) operating activities (net cash flow), continuing operations	[33]	3,227	3,928
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	[7.2]	275	275
Net cash provided by (used in) operating activities (net cash flow), total		3,502	4,203

Cash outflows for additions to property, plant, equipment and intangible assets		(1,389)	(1,876)
Cash inflows from sales of property, plant, equipment and other assets		105	185
Cash inflows from divestitures		293	489
Cash inflows from noncurrent financial assets		1,189	850
Cash outflows for acquisitions less acquired cash		(2,188)	(15,351)
Interest and dividends received		451	686
Cash inflows (outflows) from current financial assets		(202)	287
Net cash provided by (used in) investing activities (total)	[34]	(1,741)	(14,730)

Capital contributions		0	1,174
Bayer AG dividend, dividend payments to minority stockholders, reimbursements of advance capital gains tax payments		(440)	(535)
Issuances of debt		2,005	13,931
Retirements of debt		(2,659)	(3,216)
Interest paid		(787)	(1,155)
Net cash provided by (used in) financing activities (total)	[35]	(1,881)	10,199

Change in cash and cash equivalents due to business activities (total)		(120)	(328)

Cash and cash equivalents at beginning of year		3,570	3,290

Change in cash and cash equivalents due to changes in scope of consolidation		(196)	(2)
Change in cash and cash equivalents due to exchange rate movements		36	(45)

Cash and cash equivalents at end of year	[36]	3,290	2,915