A strong equity position is important for Merck to ensure the continued existence of the company. Based on our financial strategy, the Executive Board regularly reviews various key figures that reflect the capitalization of the company. Gearing (ratio of net debt and pension provisions to net equity) and the equity ratio are important indicators here.
As of the balance sheet date, the subscribed capital of the company is divided into 64,621,125 no-par value bearer shares as well as one registered share. The amount resulting from the issue of shares by Merck KGaA exceeding the nominal amount is recognized in the capital reserves. The reserves also contain the retained earnings and the net retained profit of the consolidated subsidiaries as well as actuarial gains and losses.
The disclosure of non-controlling interest is based on the stated equity of the subsidiaries concerned after any adjustment required to ensure compliance with the accounting policies of the Merck Group, as well as pro rata consolidation entries.
The net equity attributable to non-controlling interests mainly relates to the minority interests in Merck Ltd., India, Merck Ltd., Thailand, PT Merck Tbk, Indonesia, and Merck (Pvt.) Ltd., Pakistan.
In addition to the dividend payments to the shareholders of Merck KGaA and to minority shareholders in subsidiaries of the Merck Group, the appropriation of profits includes the transfer of profits from Merck & Cie to E. Merck KG in accordance with the company agreements. It also includes the reciprocal transfer of profits between E. Merck KG and Merck KGaA in accordance with the Articles of Association, which is as follows:
| XLS |
|
|
|
|
|
|
|
|
|
|
2011 |
2010 | ||
|
€ million |
|
E. Merck KG |
Merck KGaA |
E. Merck KG |
Merck KGaA |
|
Result of E. Merck KG |
|
2.7 |
– |
12.3 |
– |
|
Result of ordinary activities of Merck KGaA |
|
– |
1,326.9 |
– |
709.4 |
|
Extraordinary result |
|
– |
–20.5 |
– |
–21.0 |
|
Adjustment for trade income tax in accordance with Art. 27 (1) Articles of Association of Merck KGaA |
|
– |
– |
– |
– |
|
Trade income tax in accordance with Art. 30 (1) Articles of Association of Merck KGaA |
|
– |
29.1 |
– |
–71.0 |
|
Basis for the appropriation of profits |
(100%) |
2.7 |
1,335.5 |
12.3 |
617.4 |
|
Profit transfer to E. Merck KG |
(70.274%) |
938.5 |
–938.5 |
433.9 |
–433.9 |
|
Profit transfer from E. Merck KG |
(29.726%) |
–0.8 |
0.8 |
–3.7 |
3.7 |
|
Trade tax |
|
– |
– |
– |
– |
|
Corporation tax |
|
– |
–23.6 |
– |
–16.7 |
|
Net income |
|
940.4 |
374.2 |
442.5 |
170.5 |
In accordance with the provisions of the Articles of Association, E. Merck KG has a 70.274% interest in the profit/loss of Merck KGaA while Merck KGaA has an interest of 29.726% in the profit/loss of E. Merck KG. Merck KGaA’s profit from ordinary activities adjusted for trade income tax and extraordinary result, on which the appropriation of its profit is based, amounts to € 1,335.5. million (2010: € 617.4 million). Merck KGaA transferred € 938.5 million of its profit to E. Merck KG (2010: € 433.9 million). The profit/loss of E. Merck KG, on which the appropriation of profit/loss is based, amounts to € 2.7 million (2010: € 12.3 million). Consequently, this results in a profit transfer to Merck KGaA of € 0.8 million (2010: € 3.7 million).
Moreover, in 2011 € 44.3 million (2010: € 43.0 million) was transferred by Merck & Cie to E. Merck KG.
For 2010, a dividend of € 1.25 per share was distributed. The dividend proposal for fiscal 2011 will be € 1.50 per share, corresponding to a total dividend payment of € 96.9 million to shareholders.
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