Asset and Financial Position of the Bayer Group

Statement of Cash Flows

Bayer Group Summary Statements of Cash Flows

 

 

Q2 2016

Q2 2017

 

Change

 

H1 2016

H1 2017

 

Change

 

 

€ million

€ million

 

%

 

€ million

€ million

 

%

2016 figures restated

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

 

1,992

2,316

 

+16.3

 

2,544

3,142

 

+23.5

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

 

(10)

(3)

 

+70.0

 

760

12

 

−98.4

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

 

1,982

2,313

 

+16.7

 

3,304

3,154

 

−4.5

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

 

(1,245)

(1,178)

 

+5.4

 

(1,707)

(2,314)

 

−35.6

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

 

(3,235)

(549)

 

+83.0

 

(2,412)

62

 

.

Change in cash and cash equivalents due to business activities

 

(2,498)

586

 

.

 

(815)

902

 

.

Cash and cash equivalents at beginning of period

 

3,552

2,224

 

−37.4

 

1,859

1,899

 

+2.2

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

 

1

(37)

 

.

 

11

(28)

 

.

Cash and cash equivalents at end of period

 

1,055

2,773

 

+162.8

 

1,055

2,773

 

+162.8

Net cash provided by operating activities

  • In the second quarter of 2017, the net cash provided by operating activities (total) increased by 16.7% to €2,313 million. The net cash provided by operating activities in continuing operations rose by 16.3% to €2,316 million due to a less significant increase in cash tied up in working capital. This figure included the components of the payments received from Dow Chemical as part of a patent dispute that fall under operating activities.
  • The contribution of Covestro shares to Bayer Pension Trust e. V. in the amount of €504 million was a noncash transaction and, as such, did not result in on operating cash outflow.
  • In the first half of 2017, the net cash provided by operating activities (total) declined by 4.5% to €3,154 million. The prior-year figure included inflows from the divestiture of Diabetes Care. The net cash provided by operating activities in continuing operations climbed by a substantial 23.5% to €3,142 million, due mainly to the improvement in EBITDA.

Net cash used in investing activities

  • In the second quarter of 2017, cash outflows for property, plant and equipment and intangible assets were 19.2% lower at €476 million (Q2 2016: €589 million), and included €142 million (Q2 2016: €236 million) at Pharmaceuticals, €31 million (Q2 2016: €48 million) at Consumer Health, €135 million (Q2 2016: €164 million) at Crop Science, €5 million (Q2 2016: €6 million) at Animal Health and €92 million (Q2 2016: €80 million) at Covestro.
  • In total we invested €818 million in primarily current financial assets (Q2 2016: €697 million in noncurrent and current financial assets).
  • In the first half of 2017, cash outflows for property, plant and equipment and intangible assets fell by 6.4% to €891 million (H1 2016: €952 million), and included €294 million (H1 2016: €377 million) at Pharmaceuticals, €55 million (H1 2016: €87 million) at Consumer Health, €234 million (H1 2016: €261 million) at Crop Science, €11 million (H1 2016: €11 million) at Animal Health and €166 million (H1 2016: €126 million) at Covestro.
  • Cash outflows for acquisitions in the amount of €158 million related to the acquisition of the Cydectin™ product portfolio in the United States in the Animal Health segment.
  • Overall we invested €1,455 million in primarily current financial assets (H1 2016: €841 million particularly in noncurrent financial assets).

Net cash provided by (used in) financing activities

  • In the second quarter of 2017, the net cash outflow for financing activities amounted to €549 million, with inflows of €1,045 million from the sale of Covestro shares and net borrowings of €1,014 million (Q2 2016: net loan repayments of €950 million) standing against dividend payments of €2,361 million (Q2 2016: €2,120 million).
  • Net interest expense was €82 million higher at €247 million.
  • The contribution of Covestro shares to Bayer Pension Trust e. V., in the amount of €504 million, was a noncash transaction and therefore did not result in a financing cash inflow.
  • In the first half of 2017, there was a net cash inflow of €62 million for financing activities. There was a net inflow of €2,505 million from the sale of Covestro shares, while net borrowings came to €270 million (H1 2016: net loan repayments of €41 million). Cash outflows for dividend payments amounted to €2,361 million (H1 2016: €2,120 million).
  • Net interest expense rose by €101 million to €352 million.