Asset and Financial Position of the Bayer Group

Statement of Cash Flows

Bayer Group Summary Statements of Cash Flows

 

 

Q3 2016

Q3 2017

 

Change

 

9M 2016

9M 2017

 

Change

 

 

€ million

€ million

 

%

 

€ million

€ million

 

%

2016 figures restated

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

 

2,369

1,903

 

−19.7

 

4,435

4,355

 

−1.8

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

 

684

808

 

+18.1

 

1,922

1,510

 

−21.4

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

 

3,053

2,711

 

−11.2

 

6,357

5,865

 

−7.7

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

 

(2,039)

173

 

.

 

(3,746)

(2,141)

 

+42.8

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

 

(846)

(37)

 

+95.6

 

(3,258)

25

 

.

Change in cash and cash equivalents due to business activities

 

168

2,847

 

.

 

(647)

3,749

 

.

Cash and cash equivalents at beginning of period

 

1,055

2,773

 

+162.8

 

1,859

1,899

 

+2.2

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

 

9

(65)

 

.

 

20

(93)

 

.

Cash and cash equivalents at end of period

 

1,232

5,555

 

.

 

1,232

5,555

 

.

Net cash provided by operating activities

  • Net cash provided by operating activities (total) declined by 11.2% in the third quarter of 2017, to €2,711 million. Net cash provided by operating activities in continuing operations decreased by 19.7% to €1,903 million, in part due to higher tax payments.
  • Net cash provided by operating activities (total) declined by 7.7% in the first nine months of 2017, to €5,865 million. The prior-year figure included inflows from the divestiture of Diabetes Care. At €4,355 million, net cash provided by operating activities in continuing operations remained at the prior-year level. This figure included the components of the payments received from Dow Chemical as part of a patent dispute that fall under operating activities.
  • The transfer of Covestro shares with a value of €504 million to Bayer Pension Trust e.V. in the second quarter was a noncash transaction and therefore did not result in an operating cash outflow.

Net cash provided by (used in) investing activities

  • In the third quarter of 2017, cash outflows for property, plant and equipment and intangible assets were 15.1% lower at €557 million (Q3 2016: €656 million), and included €132 million (Q3 2016: €211 million) at Pharmaceuticals, €41 million (Q3 2016: €46 million) at Consumer Health, €114 million (Q3 2016: €186 million) at Crop Science, €8 million (Q3 2016: €8 million) at Animal Health and €117 million (Q3 2016: €89 million) at Covestro.
  • Reducing the proceeds from the sale of the Covestro shares that led to the de facto loss of control – effective September 29, 2017, and in the amount of €999 million – by the €637 million in Covestro cash and cash equivalents, results in a net inflow from divestment of €362 million.
  • Overall, we reduced our noncurrent and current financial assets by €206 million (Q3 2016: investment in primarily current financial assets of €1,435 million).
  • In the first nine months of 2017, cash outflows for property, plant and equipment and intangible assets were 10.0% lower at €1,448 million (9M 2016: €1,608 million), and included €426 million (9M 2016: €588 million) at Pharmaceuticals, €96 million (9M 2016: €133 million) at Consumer Health, €348 million (9M 2016: €447 million) at Crop Science, €19 million (9M 2016: €19 million) at Animal Health and €283 million (9M 2016: €215 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.
  • In total we invested €1,249 million in primarily current financial assets (9M 2016: €2,276 million in noncurrent and current financial assets).

Net cash provided by (used in) financing activities

  • Net cash outflow for financing activities in the third quarter of 2017 amounted to €37 million. Net inflows of €1,212 million from the sale of Covestro shares on September 12, 2017, as part of the transaction that did not lead to the de facto loss of control, stood against net loan repayments of €904 million (Q3 2016: €554 million).
  • Net interest expense was €29 million higher at €319 million.
  • In the first nine months of 2017, there was a net cash inflow of €25 million for financing activities. There was a net inflow of €3,717 million from the sale of Covestro shares, while net loan repayments came to €634 million (9M 2016: €595 million). Cash outflows for dividend payments amounted to €2,364 million (9M 2016: €2,122 million).
  • Net interest expense was €130 million higher at €671 million.
  • The transfer of Covestro shares with a value of €504 million to Bayer Pension Trust e.V. in the second quarter was a noncash transaction and therefore did not result in a financing cash inflow.