Bayer Group Consolidated Statements of Cash Flows

	2nd Quarter 2007	2nd Quarter 2008	1st Half 2007	1st Half 2008
€ million
Income from continuing operations after taxes	413	581	1,069	1,343
Income taxes	247	262	548	568
Non-operating result	257	262	475	537
Income taxes paid	(342)	(352)	(685)	(716)
Depreciation and amortization	655	669	1,254	1,381
Change in pension provisions	(86)	(86)	(182)	(180)
(Gains) losses on retirements of noncurrent assets	(6)	(69)	6	(66)
Non-cash effects of the remeasurement of acquired assets (inventory work-down)	49	55	113	106
Gross cash flow	1,187	1,322	2,598	2,973

Decrease (increase) in inventories	38	(13)	(175)	(264)
Decrease (increase) in trade accounts receivable	(52)	(36)	(1,063)	(1,074)
(Decrease) increase in trade accounts payable	16	131	(98)	(65)
Changes in other working capital, other non-cash items	(373)	(515)	(71)	(153)
Net cash provided by (used in) operating activities (net cash flow), continuing operations	816	889	1,191	1,417
Net cash provided by (used in) operating activities (net cash flow), discontinued operations	(36)	0	2	0
Net cash provided by (used in) operating activities (net cash flow) (total)	780	889	1,193	1,417

Cash outflows for additions to property, plant, equipment and intangible assets	(440)	(347)	(641)	(635)
Cash inflows from sales of property, plant, equipment and other assets	13	91	31	107
Cash inflows (outflows) from divestitures less divested cash	230	(9)	4,903	(49)
Cash inflows (outflows) for acquisitions less acquired cash	(235)	(306)	(257)	(552)
Cash inflows (outflows) from noncurrent financial assets	3	21	8	48
Interest and dividends received	376	224	469	298
Cash (inflows) outflows from current financial assets	0	5	23	(2)
Net cash provided by (used in) investing activities (total)	(53)	(321)	4,536	(785)

Capital contributions	0	0	0	0
Bayer AG dividend and dividend payments to minority stockholders	(766)	(1,031)	(775)	(1,040)
Issuances of debt	1,159	602	1,603	999
Retirements of debt	(3,542)	(179)	(5,496)	(299)
Interest paid	(740)	(619)	(985)	(756)
Net cash provided by (used in) financing activities (total)	(3,889)	(1,227)	(5,653)	(1,096)

Change in cash and cash equivalents due to business activities (total)	(3,162)	(659)	76	(464)

Cash and cash equivalents at beginning of period	6,143	2,717	2,915	2,531

Change in cash and cash equivalents due to changes in scope of consolidation	(3)	2	(4)	2
Change in cash and cash equivalents due to exchange rate movements	2	(2)	(7)	(11)

Cash and cash equivalents at end of period	2,980	2,058	2,980	2,058