- Financial management policies and goals
- Financing
- Effect of off-balance-sheet financing instruments
- Liquidity analysis
- Dividend
- Cash flow analysis
- Investments and acquisitions
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 |
(2008: € 245 million). Cash and cash equivalents increased to € 420 million as of December 31, 2009 (December 31, 2008: € 370 million).
Dividend
Investments and acquisitions