(41) Cash flow from financing activities
Accounting and measurement policies
Cash flow from financing activities
The option to recognize dividend payments and profit withdrawals in the cash flow from financing activities is exercised in determining the cash flow from financing activities.
Furthermore, the net reporting option has been exercised to report cash receipts and payments for items in which the turnover is quick, the amounts large and the maturities short. This primarily relates to rolling financing by way of commercial paper and short-term bank loans reported under “Proceeds from new borrowings of other current and non-current financial debt” and “Repayment of other current and non-current financial debt”.
The change in financial debt was as follows:
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, 2025 |
|
Cash inflows |
|
Repayments |
|
Interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, 2025 |
Financial liabilities to E. Merck KG, Darmstadt, Germany, and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
1,425 |
|
809 |
|
-247 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,987 |
Other current and non-current financial liabilities |
|
8,876 |
|
9,052 |
|
-8,543 |
|
-40 |
|
120 |
|
-149 |
|
658 |
|
3 |
|
4 |
|
9,981 |
Financial debt |
|
10,301 |
|
9,861 |
|
-8,790 |
|
-40 |
|
120 |
|
-149 |
|
658 |
|
3 |
|
4 |
|
11,968 |
Derivative assets |
|
-70 |
|
606 |
|
– |
|
– |
|
– |
|
– |
|
-549 |
|
– |
|
– |
|
-13 |
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, 2024 |
|
Cash inflows |
|
Repayments |
|
Lease interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, 2024 |
Financial liabilities to E. Merck KG, Darmstadt, Germany, and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
1,195 |
|
683 |
|
-453 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,425 |
Other current and non-current financial liabilities |
|
8,746 |
|
2,113 |
|
-2,950 |
|
-16 |
|
383 |
|
118 |
|
457 |
|
7 |
|
17 |
|
8,876 |
Financial debt |
|
9,941 |
|
2,796 |
|
-3,404 |
|
-16 |
|
383 |
|
118 |
|
457 |
|
7 |
|
17 |
|
10,301 |
Derivative assets |
|
-27 |
|
661 |
|
– |
|
– |
|
– |
|
– |
|
-703 |
|
– |
|
– |
|
-70 |
The proceeds and repayments for other current and non-current financial liabilities primarily resulted from the temporary utilization and repayment of bank loans for interim financing in connection with the acquisition of SpringWorks Therapeutics, Inc., United States, as well as from the repayment and new issue of bonds. Interest payments also include interest payments for leases as well as discount payments in connection with the repayment of bonds. These were recognized in operating cash flow and served as a reconciliation item in the above table, as the underlying lease liabilities and bond liabilities were a component of financial debt. Changes in lease liabilities included additions and retirements of rights of use from leases and the effects from unwinding of the discount on lease liabilities.
Fair value changes in other current and non-current financial debt were entirely attributable to liabilities from derivatives. In the Consolidated Cash Flow Statement, cash changes of assets from derivatives of € 606 million (2024: € 661 million) were reported together with repayments of other current and non-current financial debt of € 8,543 million (2024: € 2,950 million) in the item “Repayment of other current and non-current financial debt” with a net amount of € 7,937 million (2024: € 2,290 million). Changes of assets from derivatives were reported separately in the above reconciliation, as they did not form part of financial liabilities.
The amount of unused credit lines that could be employed for future operating activities and to meet obligations and information on changes in financial debt can be found in Note (37) Financial debt/capital management.