- 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, as can be seen from the chart. Cash flow increased by 19% to €1,886 million in 2010 (2009: €1,579 million). This was mainly due to the Group’s excellent earnings1 performance. The change in working capital in 2010 was -€13 million (2009: -€46 million).
CASH FLOW STATEMENT (SUMMARY)
| € in millions | 2010 | 2009 |
|---|---|---|
| 1 Net income attributable to Fresenius SE & Co. KGaA and noncontrolling interest The detailed cash flow statement is shown in the consolidated financial statements. |
||
| Net income1 | 1,205 | 991 |
| Depreciation and amortization | 639 | 562 |
| Change in pension provisions | 42 | 26 |
| Cash flow | 1,886 | 1,579 |
| Change in working capital | -13 | -46 |
| Change in mark-to-market valuation of the MEB and CVR | 38 | 20 |
| Operating cash flow | 1,911 | 1,553 |
| Property, plant and equipment | -754 | -677 |
| Proceeds from the sale of property, plant and equipment | 21 | 15 |
| Cash flow before acquisitions and dividends | 1,178 | 891 |
| Cash used for acquisitions/proceeds from disposals | -504 | -227 |
| Dividends | -329 | -275 |
| Cash flow after acquisitions and dividends | 345 | 389 |
| Cash provided by/used for financing activities (without dividends paid) | -23 | -336 |
| Effect of exchange rate changes on cash and cash equivalents | 27 | -3 |
| Change in cash and cash equivalents | 349 | 50 |
Operating cash flow increased by 23% to €1,911 million in 2010 (2009: €1,553 million). The cash flow margin was 12.0%, which was well above the level of the previous year (2009: 11.0%). 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 €754 million, and proceeds from the sale of property, plant and equipment were €21 million (2009: €677 million and €15 million, respectively).
Cash flow before acquisitions and dividends rose by 32% to €1,178 million (2009: €891 million). This was sufficient to fully finance the net acquisitions of €504 million and the Group dividends of €329 million. Group dividends consisted of dividend payments of €122 million to the shareholders of Fresenius SE & Co. KGaA, payments of €183 million by Fresenius Medical Care to its shareholders, and dividends paid to third parties of €89 million. These payments were offset by the dividend of €65 million which the former Fresenius SE received as a shareholder of Fresenius Medical Care.
The cash outflow from financing activities (without dividend payments) was €23 million (2009: €336 million). In addition to the expenditures on acquisitions, Group dividend payments resulted in a cash outflow of €329 million in 2010 (2009: €275 million). Cash and cash equivalents as of December 31, 2010 were €769 million (December 31, 2009: €420 million).
1 Net income attributable to Fresenius SE & Co. KGaA
Dividend
Investments and acquisitions