(16) Operating cash flow
Accounting and measurement policies
Operating cash flow
The operating cash flow is calculated and presented based on the following principles:
- The operating cash flow is presented using the indirect method based on profit after taxes.
- The option to recognize interest received and interest payments made is exercised to the extent that such transactions are recognized in the operating cash flow.
- Tax payments are reported in the operating cash flow. Only significant transactions where the associated tax payments can be practically calculated are recognized in the relevant item of the consolidated cash flow statement.
Tax payments made totaled € 1,171 million in fiscal 2024 (2023: € 1,053 million). Tax refunds received amounted to € 214 million (2023: € 38 million). The increase was mainly due to tax prepayments for previous years exceeding the assessed taxes.
Interest paid totaled € 240 million (2023: € 224 million). Interest received amounted to € 124 million (2023: € 77 million).
The changes in provisions in fiscal 2024 included a mid-double-digit million-euro amount for the recognition of provisions for follow-on obligations in connection with the discontinuation of the xevinapant program (see Note (7) “Collaboration and licensing agreements”). In the previous year, they included a high-double-digit million-euro amount for the recognition of provisions for acceptance and follow-on obligations in connection with the results of the two Phase III clinical trials for evobrutinib. They also included a high double-digit million-euro amount for the utilization of restructuring provisions to align the Group functions more closely with the business that had been recognized in the previous year.
In the previous year, the item “Neutralization of gains/losses on disposal of fixed assets” included the effects recognized in income in connection with the disposal of a non-strategic brand in the Healthcare business sector and a portfolio of licenses and patents in the Electronics business sector. The corresponding cash inflows were recognized in cash flow from investing activities in the previous year.
In the previous year, changes in other non-cash income and expenses contained the neutralization of revaluations of contingent consideration recognized in income. The corresponding cash inflows were also recognized in cash flow from investing activities.