Merck 2008 Annual Report Download - page 130

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[35] Net cash flows from financing activities
Disclosed dividend payments and transfers of profits in accordance with the Articles
of Association were broken down as follows in the fiscal year:
€ million 2008 2007
Dividend payments
Dividends to shareholders –206.8 –67.8
Dividends to minority shareholders –5.7 –212.5 –9.2 –77.0
Net profits transferred by Merck KGaA
to E. Merck KG
Profit transfer in accordance with
the Articles of Association from
E. Merck KG to Merck KGaA 1.8 –2.1
Profit transfer in accordance with
the Articles of Association from
Merck KGaA to E. Merck KG –126.5 –65.1
Withdrawals by E. Merck KG from the
reserves/profit carried forward by
Merck KGaA –80.3 –205.0 –438.2 –505.4
Profit transfer from Merck & Cie KG
to E. Merck KG –34.9 –30.4
Total dividend payments
and profit transfers –452.4 –612.8
Free cash flow after dividend payments and profit transfers totaled € –14.0 million
(2007: € –2,085.9 million).
[36] Cash and cash equivalents
The composition of cash and cash equivalents is presented underNotes to the Balance
Sheet.
[37] Free cash flow
Free cash flow is an indicator that we use internally to measure the contribution of our
divisions to liquidity. Free cash flow includes all net cash flows from operating activi-
ties as well as investing activities performed in connection with operating business.
We do not include in free cash flow pure financial investments and similar monetary
deposits of more than three months, which are also to be reported as net cash flows
from investing activities under IFRS.
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
125