Note 13: Cash, cash flow and net debt
In € millions |
2013 |
2014 |
||
Cash on hand and in banks |
1,333 |
848 |
||
Short-term investments |
765 |
884 |
||
Included under cash and cash equivalents in the balance sheet |
2,098 |
1,732 |
||
Debt to credit institutions |
(78) |
(83) |
||
Total per cash flow statement |
2,020 |
1,649 |
Short-term investments almost entirely consist of cash loans, time deposits, marketable private borrowings and marketable securities immediately convertible into cash. For more information on credit risk management, see Note 23.
At December 31, 2014, an amount of €95 million in cash and cash equivalents was restricted (2013: €115 million). Restricted cash is defined as cash that cannot be accessed centrally due to regulatory or contractual restrictions.
Cash flow impact on working capital |
||||
|
|
|
||
In € millions |
2013 |
2014 |
||
Trade and other receivables |
(181) |
(113) |
||
Inventories |
(7) |
(59) |
||
Trade and other payables |
175 |
200 |
||
Total |
(13) |
28 |
||
Cash flow impact of changes in provisions |
||||
|
|
|
||
In € millions |
2013 |
2014 |
||
Post-retirement provisions |
(417) |
(348) |
||
Restructuring provisions |
55 |
16 |
||
Environmental and sundry provisions |
(33) |
(74) |
||
Total |
(395) |
(406) |
||
Changes in provisions is the balance of amounts paid and additions/reversals during the year. In 2014, €92 million of the change in sundry provisions concerned discontinued operations.
Cash flow and net debt
Operating activities in 2014 resulted in cash inflows of €811 million (2013: €716 million). Profit from continuing operations was lower in 2014, however, the comparative for 2014 included a non-cash gain from deferred tax of €124 million, which is reversed on the line Income tax. Net cash from operating activities benefited from lower working capital.
Net debt at year-end 2014 of €1,606 million was slightly up on 2013 (€1,529 million). Cash outflows used for discontinued operations of €88 million mainly related to a settlement for a case following the divestment of Organon BioSciences in 2007.
Net debt |
||||||||
|
|
|
|
|
||||
In € millions |
Long-term |
Short-term |
Cash |
Net debt |
||||
Net debt equivalents at January 1, 2013 |
3,388 |
662 |
(1,752) |
2,298 |
||||
New debt issued |
167 |
82 |
(249) |
– |
||||
Redemption of loans |
– |
(594) |
594 |
– |
||||
Net cash from operating activities |
– |
– |
(716) |
(716) |
||||
Capital expenditures |
– |
– |
666 |
666 |
||||
Acquisitions and divestments |
– |
– |
(1,092) |
(1,092) |
||||
Dividends |
– |
– |
286 |
286 |
||||
Transfers from long-term to short-term |
(867) |
867 |
– |
– |
||||
Effect of exchange rate changes on cash and cash equivalents |
(9) |
(37) |
91 |
45 |
||||
Other changes |
(13) |
(19) |
74 |
42 |
||||
Net debt equivalents at year-end |
2,666 |
961 |
(2,098) |
1,529 |
||||
Net debt |
||||||||
|
|
|
|
|
||||
In € millions |
Long-term |
Short-term |
Cash |
Net debt |
||||
Net debt equivalents at January 1, 2014 |
2,666 |
961 |
(2,098) |
1,529 |
||||
New debt issued |
512 |
474 |
(986) |
– |
||||
Redemption of loans |
– |
(1,347) |
1,347 |
– |
||||
Net cash from operating activities |
– |
– |
(811) |
(811) |
||||
Capital expenditures |
– |
– |
588 |
588 |
||||
Acquisitions and divestments |
– |
– |
38 |
38 |
||||
Dividends |
– |
– |
280 |
280 |
||||
Transfers from long-term to short-term |
(663) |
663 |
– |
– |
||||
Effect of exchange rate changes on cash and cash equivalents |
23 |
– |
(70) |
(47) |
||||
Other changes |
(11) |
60 |
(20) |
29 |
||||
Net debt equivalents at year-end |
2,527 |
811 |
(1,732) |
1,606 |
||||