Merck 2014 Annual Report Download - page 228

223CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
2014 2013
€ million
E. MerckKG,
Darmstadt, Germany
Merck KGaA,
Darmstadt, Germany
E. MerckKG,
Darmstadt, Germany
Merck KGaA,
Darmstadt, Germany
Net income 407.9 148.4 345.1 134.0
Profit carried forward from previous year 26.3 11.2 – –
Withdrawal from revenue reserves – – – –
Transfer to revenue reserves – – – –
Retained earnings Merck KGaA, Darmstadt, Germany 159.6 134.0
Withdrawal by E. MerckKG, Darmstadt, Germany – 362.3 – 318.8
Dividend proposal –129.2 –122.8
Profit carried forward 71.9 30.4 26.3 11.2
For 2013, a dividend of € 1.90 per share was distributed. The
dividend proposal for fiscal 2014 will be €1.00 per share, taking
into account the doubling of the number of shares since June 2014.
The proposed payment to shareholders amounts to €129.2 million
(2013: €122.8
million). The amount withdrawn by E. MerckKG,
Darmstadt,
Germany, would amount to € 362.3 million (2013:
€318.8 million).
Changes in reserves
For 2014 the profit transfer to E. MerckKG, Darmstadt, Germany,
including changes in reserves amounted to €435.0 million. This
consists of the profit transfer to E. MerckKG, Darmstadt, Germany
(€– 419.5 million), the result transfer from E. MerckKG, Darmstadt,
Germany, to MerckKGaA, Darmstadt, Germany (€– 6.3 million),
the change in the profit carried forward of E. MerckKG, Darmstadt,
Germany (€45.6 million) as well as the profit transfer from Merck
& Cie, a subsidiary of Merck KGaA, Darmstadt, Germany, to
E. MerckKG, Darmstadt, Germany (€– 54.8 million). Merck & Cie
is a partnership under Swiss law that is controlled by MerckKGaA,
Darmstadt, Germany, but distributes its operating result directly to
E. MerckKG, Darmstadt, Germany. This distri bution is a payment
to shareholders, which is why it is likewise presented under
changes in equity.
Non-controlling interests
The disclosure of non-controlling interests was based on the stated
equity of the subsidiaries concerned after any adjustment required
to ensure compliance with the accounting policies of the Group, as
well as pro rata consolidation entries.
The net equity attributable to non-controlling interests mainly
related to the minority interests in the publicly traded companies
Merck Ltd., India, a subsidiary of Merck KGaA, Darmstadt, Germany,
and P.T. Merck Tbk, Indonesia, a subsidiary of Merck KGaA,
Darmstadt, Germany, as well as Merck Ltd. Thailand, a subsidiary of
Merck KGaA, Darmstadt, Germany, and Merck (Pvt.) Ltd., Pakistan,
a subsidiary of Merck KGaA, Darmstadt, Germany.
For an interim period, non-controlling interests of € 161.9
million existed in the course of the acquisition of AZ Electronic
Materials S.A. The acquisition of these interests after May 2, 2014
was recognized in equity as a transaction without a change of
control. This lowered retained earnings by €189.4 million, corre-
sponding to the difference between the purchase price of €351.3
million paid for the remaining shares and the disposal of non-
controlling interests in the amount of €161.9 million.