Merck 2008 Annual Report Download - page 126

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In addition to the dividend payments to the shareholders of Merck KGaA and to
minority shareholders in subsidiary companies of the Merck Group, the appropriation
of profits includes the transfer of profits from Merck & Cie KG to E. Merck KG in
accord ance with the company agreements and the reciprocal transfer of profits be tween
E. Merck KG and Merck KGaA in accordance with the Articles of Association. In
accordance with the capital ratios, E. Merck KG has a 70.27% interest in the profit/loss
of Merck KGaA while Merck KGaA has an interest of 29.73% in the profit/loss of
E. Merck KG. Merck KGaA’s profit from ordinary activities less trade income tax, on
which the appropriation of its profit is based, amounts to € 180.0 million. Merck KGaA
transferred € 126.5 million of its profit to E. Merck KG (2007: € 65.1 million). In 2008,
€ 34.9 million was transferred from Merck & Cie KG (2007: € 30.4 million). The profit/
loss of E. Merck KG, on which the appropriation of profit/loss is based, amounts to
€ 5.9 million (2007: € –7.2 million). Consequently, this results in a profit transfer to
Merck KGaA of € 1.8 million (2007: € –2.1 million).
For 2007, a dividend of € 1.20 plus a bonus of € 2.00 per share was distributed. The
dividend proposal for fiscal 2008 will be € 1.50 per share, corresponding to a total
dividend payment of € 96.9 million to the limited liability shareholders.
The following table shows the development of changes taken directly to equity as
a result of recognizing financial instruments at fair value in accordance with IAS 39.
€ million
Available for sale
current and non-
current financial
assets
Derivative
financial
instruments Total
Balance as of January 1, 2008 0.9 0.1 1.0
Fair value adjustments –45.4 53.9 8.5
Reclassification to income statement 29.6 20.6 50.2
Reclassification to assets – – –
Subsequent measurement in fiscal year –15.8 74.5 58.7
Deferred taxes recognized in equity –0.1 –10.5 –10.6
Balance as of December 31, 2008 –15.0 64.1 49.1
72 Income Statement
73 Balance Sheet
74 Segment Reporting
CONSOLIDATED FINANCIAL STATEMENTS OF THE MERCK GROUP
76 Cash Flow Statement
77 Free Cash Flow
77 Statement of Recognized
Income and Expense
78 Statement of Changes
in Net Equity including
Minority Interest
79 Notes
121