Bayer AG - Stockholders' Newsletter First Quarter 2007

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Financial Statements

Bayer Group Consolidated Statements of Cash Flows

	1st Quarter 2006	1st Quarter 2007
€ million
Income from continuing operations after taxes	562	656
Income taxes	277	301
Non-operating result	210	218
Income taxes paid	(216)	(343)
Depreciation and amortization	387	599
Change in pension provisions	(130)	(96)
(Gains) losses on retirements of noncurrent assets	(1)	12
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	-	64
Gross cash flow	1,089	1,411

Decrease (increase) in inventories	(114)	(213)
Decrease (increase) in trade accounts receivable	(889)	(1,011)
(Decrease) increase in trade accounts payable	(231)	(114)
Changes in other working capital, other non-cash items	183	302
Net cash provided by (used in) operating activities (net cash flow), continuing operations	38	375
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	90	38
Net cash provided by (used in) operating activities (net cash flow), total	128	413

Cash outflows for property, plant, equipment and intangible assets	(419)	(201)
Cash inflows from sales of property, plant, equipment and other assets	20	18
Cash inflows from divestitures less divested cash	0	4,673
Cash outflows for acquisitions less acquired cash	(20)	(22)
Cash inflows from noncurrent financial assets	26	5
Interest and dividends received	107	93
Cash inflows (outflows) from current financial assets	94	23
Net cash provided by (used in) investing activities (total)	(192)	4,589

Capital contributions	0	0
Bayer AG dividend, dividend payments to minority stockholders, reimbursements of advance capital gains tax payments	165	(9)
Issuances of debt	269	444
Retirements of debt	(393)	(1,954)
Interest paid	(228)	(245)
Net cash provided by (used in) financing activities (total)	(187)	(1,764)

Change in cash and cash equivalents due to business activities (total)	(251)	3,238

Cash and cash equivalents, January 1	3,290	2,915

Change in cash and cash equivalents due to changes in scope of consolidation	(2)	(1)
Change in cash and cash equivalents due to exchange rate movements	(11)	(9)

Cash and cash equivalents, March 31	3,026	6,143