Cash flow analysis

The cash flow statement shows a very positive development. Cash flow increased by 9 % to € 1,579 million in 2009 (2008: € 1,454 million). This was mainly due to the Group’s excellent earnings performance. The change in working capital in 2009 was € -46 million (2008: € -285 million). This improvement was due to strict working capital management, driven mainly by the decline in trade accounts receivable.

Operating cash flow increased by 45 % to € 1,553 million in 2009 (2008: € 1,074 million). The cash flow margin rose to 11.0 % (2008: 8.7 %). Operating cash flow was more than sufficient to meet all the financing needs for investing activities excluding acquisitions, whereby cash used for capital expenditure was € 677 million, and proceeds from the sale of property, plant and equipment were € 15 million (2008: € 759 million and € 23 million, respectively). Cash flow before acquisitions and dividends more than doubled to € 891 million (2008: € 338 million). This was sufficient to fully finance the net acquisitions of € 227 million and the Group dividends of € 275 million. Group dividends consisted of dividend payments of € 114 million to the shareholders of Fresenius SE, payments of € 173 million by Fresenius Medical Care to its shareholders, and dividends paid to third parties of € 50 million. Set against this, there was the dividend of € 62 million which Fresenius SE received as a shareholder of Fresenius Medical Care.

Cash from financing activities (excluding dividend payments) was € -336 million (2008: € 2,869 million, driven by the equity and debt financing for the APP Pharmaceuticals acquisition). In addition to the acquisition expenditure, Group dividend payments led to a cash outflow of € 275 million in 2009.

 

 

Cash Flow Statement (Summary)


in million € 2009 2008
1 Net income attributable to Fresenius SE and noncontrolling interest.
     
The detailed cash flow statement is shown in the consolidated financial statements.    
Net income 1 991 683
Depreciation and amortization 562 783
Change in pension provisions 26 - 12
Cash flow 1,579 1,454
Change in working capital - 46 - 285
Change in mark-to-market valuation of the MEB and CVR 20 - 95
Operating cash flow 1,553 1,074
Property, plant and equipment - 677 - 759
Proceeds from the sale of property, plant and equipment 15 23
Cash flow before acquisitions and dividends 891 338
Cash used for acquisitions / proceeds from disposals - 227 - 2,957
Dividends - 275 - 245
Cash flow after acquisitions and dividends 389 - 2,864
Cash provided by / used for financing activities (without dividends paid) - 336 2,869
Effect of exchange rate changes on cash and cash equivalents - 3 4
Change in cash and cash equivalents 50 9

in million € 2009 2008
1 Net income attributable to Fresenius SE and noncontrolling interest.
     
The detailed cash flow statement is shown in the consolidated financial statements.    
Net income 1 991 683
Depreciation and amortization 562 783
Change in pension provisions 26 - 12
Cash flow 1,579 1,454
Change in working capital - 46 - 285
Change in mark-to-market valuation of the MEB and CVR 20 - 95
Operating cash flow 1,553 1,074
Property, plant and equipment - 677 - 759
Proceeds from the sale of property, plant and equipment 15 23
Cash flow before acquisitions and dividends 891 338
Cash used for acquisitions / proceeds from disposals - 227 - 2,957
Dividends - 275 - 245
Cash flow after acquisitions and dividends 389 - 2,864
Cash provided by / used for financing activities (without dividends paid) - 336 2,869
Effect of exchange rate changes on cash and cash equivalents - 3 4
Change in cash and cash equivalents 50 9

(2008: € 245 million). Cash and cash equivalents increased to € 420 million as of December 31, 2009 (December 31, 2008: € 370 million).

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