Financial Position of the Bayer Group

Statements of Cash Flows

Bayer Group Summary Statements of Cash Flows

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

in %

 

€ million

€ million

 

in %

2015 figures restated

1

Gross cash flow = income after income taxes, plus income taxes, plus financial result, minus income taxes paid or accrued, plus depreciation, amortization and impairment losses, minus impairment loss reversals, plus / minus changes in pension provisions, minus gains / plus losses on retirements of noncurrent assets, minus gains from the remeasurement of already held assets in step acquisitions. The change in pension provisions includes the elimination of noncash components of EBIT. It also contains benefit payments during the year. Gross cash flow is not defined in the International Financial Reporting Standards.

Gross cash flow1

 

1,434

1,951

 

+36.1

 

5,596

6,881

 

+23.0

Changes in working capital / other noncash items

 

798

1,086

 

+36.1

 

(685)

(1,300)

 

–89.8

Net cash provided by (used in) operating activities (net cash flow), continuing operations

 

2,232

3,037

 

+36.1

 

4,911

5,581

 

+13.6

Net cash provided by (used in) operating activities (net cash flow), discontinued operations

 

98

16

 

–83.7

 

102

776

 

.

Net cash provided by (used in) operating activities (net cash flow) (total)

 

2,330

3,053

 

+31.0

 

5,013

6,357

 

+26.8

Net cash provided by (used in) investing activities (total)

 

(965)

(2,039)

 

–111.3

 

(2,088)

(3,746)

 

–79.4

Net cash provided by (used in) financing activities (total)

 

(2,162)

(846)

 

+60.9

 

(2,238)

(3,258)

 

–45.6

Change in cash and cash equivalents due to business activities

 

(797)

168

 

.

 

687

(647)

 

.

Cash and cash equivalents at beginning of period

 

3,247

1,055

 

–67.5

 

1,853

1,859

 

+0.3

Change due to exchange rate movements and to changes in scope of consolidation

 

(55)

9

 

.

 

(145)

20

 

.

Cash and cash equivalents at end of period

 

2,395

1,232

 

–48.6

 

2,395

1,232

 

–48.6

Net cash provided by operating activities (net cash flow)

  • Gross cash flow from continuing operations in the third quarter of 2016 climbed by a robust 36.1% to €1,951 million, due among other things to the increase in EBIT.
  • Net cash flow (total) rose by a substantial 31.0% to €3,053 million due to a decrease in cash tied up in working capital.
  • The net cash flow (total) reflected income tax payments of €370 million (Q3 2015: €421 million).
  • Gross cash flow from continuing operations in the first nine months of 2016 climbed by a considerable 23.0% to €6,881 million.
  • Net cash flow (total) was diminished by an increase in cash tied up in working capital but rose by a clear 26.8% to €6,357 million, due also to the inflow from the divestiture of the Diabetes Care business.
  • The net cash flow (total) reflected income tax payments of €1,578 million (9M 2015: €1,217 million).
  • The transfer of Covestro shares with a value of €337 million to Bayer Pension Trust e.V. was a noncash transaction and therefore did not result in an operating cash outflow.

Net cash provided by (used in) investing activities

  • Cash outflows for property, plant and equipment and intangible assets were unchanged in the third quarter of 2016 at €656 million (Q3 2015: €655 million) and included €211 million (Q3 2015: €164 million) at Pharmaceuticals, €46 million (Q3 2015: €57 million) at Consumer Health, €186 million (Q3 2015: €171 million) at Crop Science, €8 million (Q3 2015: €7 million) at Animal Health and €89 million (Q3 2015: €128 million) at Covestro.
  • Cash outflows for property, plant and equipment and intangible assets were 0.4% higher in the first nine months of 2016 at €1,608 million (9M 2015: €1,601 million) and included €588 million (9M 2015: €484 million) at Pharmaceuticals, €133 million (9M 2015: €100 million) at Consumer Health, €447 million (9M 2015: €416 million) at Crop Science, €19 million (9M 2015: €17 million) at Animal Health and €215 million (9M 2015: €352 million) at Covestro.

Net cash provided by (used in) financing activities

  • In the third quarter of 2016, there was a net cash outflow of €846 million for financing activities, including net loan repayments of €554 million (Q3 2015: €1,938 million).
  • Net interest payments were 31.2% higher at €290 million (Q3 2015: €221 million) and included payments for facilitating loans.
  • In the first nine months of 2016, there was a net cash outflow of €3,258 million for financing activities, including net loan repayments of €595 million (9M 2015: net borrowings of €88 million).
  • Net interest payments were 18.4% higher at €541 million (9M 2015: €457 million).
  • The cash outflow for dividends amounted to €2,122 million (9M 2015: €1,869 million).
  • The transfer of Covestro shares with a value of €337 million to Bayer Pension Trust e.V. was a noncash transaction and therefore did not result in a financing cash inflow.