Financial Position of the Bayer Group

Statements of Cash Flows

Bayer Group Summary Statements of Cash Flows

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 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

 

2,165

2,366

 

+9.3

 

4,162

4,930

 

+18.5

Changes in working capital / other noncash items

 

(205)

(374)

 

–82.4

 

(1,483)

(2,386)

 

–60.9

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

 

1,960

1,992

 

+1.6

 

2,679

2,544

 

–5.0

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

 

(1)

(10)

 

.

 

4

760

 

.

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

 

1,959

1,982

 

+1.2

 

2,683

3,304

 

+23.1

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

 

(527)

(1,245)

 

–136.2

 

(1,123)

(1,707)

 

–52.0

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

 

334

(3,235)

 

.

 

(76)

(2,412)

 

.

Change in cash and cash equivalents due to business activities

 

1,766

(2,498)

 

.

 

1,484

(815)

 

.

Cash and cash equivalents at beginning of period

 

1,607

3,552

 

+121.0

 

1,853

1,859

 

+0.3

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

 

(126)

1

 

.

 

(90)

11

 

.

Cash and cash equivalents at end of period

 

3,247

1,055

 

–67.5

 

3,247

1,055

 

–67.5

Net cash provided by operating activities (net cash flow)

  • Gross cash flow from continuing operations in the second quarter of 2016 climbed by a substantial 9.3% to €2,366 million.
  • Net cash flow (total) was diminished by an increase in cash tied up in working capital but rose slightly by 1.2% to €1,982 million.
  • The net cash flow (total) reflected income tax payments of €659 million (Q2 2015: €352 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.
  • Gross cash flow from continuing operations in the first half of 2016 climbed by a substantial 18.5% to €4,930 million.
  • Net cash flow (total) was diminished by an increase in cash tied up in working capital but rose by 23.1% to €3,304 million, due above all to the inflow from the divestiture of the Diabetes Care business.
  • The net cash flow (total) reflected income tax payments of €1,208 million (H1 2015: €796 million).

Net cash provided by (used in) investing activities

  • Cash outflows for property, plant and equipment and intangible assets were 2.0% lower in the second quarter of 2016 at €589 million (Q2 2015: €601 million) and included €236 million (Q2 2015: €225 million) at Pharmaceuticals, €48 million (Q2 2015: €32 million) at Consumer Health, €164 million (Q2 2015: €149 million) at Crop Science, €6 million (Q2 2015: €6 million) at Animal Health and €80 million (Q2 2015: €135 million) at Covestro.
  • Cash outflows for property, plant and equipment and intangible assets were 0.6% higher in the first half of 2016 at €952 million (H1 2015: €946 million) and included €377 million (H1 2015: €320 million) at Pharmaceuticals, €87 million (H1 2015: €43 million) at Consumer Health, €261 million (H1 2015: €245 million) at Crop Science, €11 million (H1 2015: €10 million) at Animal Health and €126 million (H1 2015: €224 million) at Covestro.

Net cash provided by (used in) financing activities

  • In the second quarter of 2016, there was a net cash outflow of €3,235 million for financing activities, including net loan repayments of €950 million (Q2 2015: net borrowings of €2,349 million).
  • Net interest payments were 7.1% higher at €165 million (Q2 2015: €154 million).
  • The cash outflow for dividends amounted to €2,120 million (Q2 2015: €1,861 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 financial cash inflow.
  • In the first half of 2016, there was a net cash outflow of €2,412 million for financing activities, including net loan repayments of €41 million (H1 2015: net borrowings of €2,026 million).
  • Net interest payments were 6.4% higher at €251 million (H1 2015: €236 million).