Annual Report 2014 Annual Report 2014

Notes to the consolidated cash flow statement

The cash flow statement has been prepared in accordance with IAS 7 “Statement of Cash Flows”. It presents the changes in cash and cash equivalents as a result of cash inflows and outflows in the year under review. Further information on cash flows can be found in the explanation of cash and cash equivalents (see Note [35]). The amount of undrawn borrowing facilities that could be tapped for future operating activities and to meet obligations is disclosed in Note [44].

The cash flows reported by Group companies in non-functional currencies are translated at average exchange rates. Cash and cash equivalents are translated at the closing rates. The impact of foreign exchange rate changes is disclosed separately under changes in cash and cash equivalents.

Within the cash flows from investing activities reclassifications were made with the aim of a clearer and more understandable presentation. The 2013 figures were correspondingly adjusted.

(53) Net cash flows from operating activities

In 2014, tax payments totaled € 667.8 million (2013: € 491.4 million). Tax refunds totaled € 54.9 million (2013: €89.5 million). Interest paid totaled € 191.1 million (2013: € 248.3 million). Interest received amounted to € 89.4 million (2013: € 85.9 million). Within the scope of a Contractual Trust Arrangement in Germany, € 200.0 million was transferred to Merck Pensionstreuhand e. V., Darmstadt (trustee) in 2013. This led to a corresponding decline in pension provisions and to a decrease in cash flows from operating activities. No transfers were made in 2014.

The changes in provisions during the reporting period were affected by the written settlement reached with Israel Bio-Engineering Limited Partnership (IBEP). The changes in other assets and liabilities included the upfront payment in the amount of US$ 850 million (€ 678.3 million) paid in cash by Pfizer Inc., USA, after the agreement had been entered into (see Note [5]).

Net cash flows from operating activities broken down by the segments of the Merck Group are disclosed in Note [51].

(54) Net cash flows from investing activities

A total of € 4,562.6 million was used for acquisitions and investments in financial assets (2013: € 990.3 million). Of this amount, € 1,419.3 million was attributable to the acquisition of AZ Electronic Materials S.A., Luxembourg. Net cash outflows from investments in current and non-current assets amounting to € 3,143.3 million (2013: € 975.2 million) mainly resulted from the purchase of current financial assets.

In 2014, cash inflows from disposals of other current financial assets amounted to € 3,508.6 (2013: € 372.1 million). In 2013, cash inflows of € 251.1 million were attributable to the sale of the Merck Serono site in Geneva, Switzerland.

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