Investments and acquisitions

The Fresenius Group invested €1,402 million in 2010 (2009: €931 million). €758 million was invested in property, plant and equipment (2009: €671 million). At 4.7% of sales, that was in line with the targeted level (2009: 4.7% of sales). It was well above the depreciation level of €639 million and serves as the basis for enabling expansion and preserving the Company’s value over the long term. €644 million was invested in acquisitions (2009: €260 million). Of the total capital expenditure in 2010, 54% was invested in property, plant and equipment; 46% was spent on acquisitions.

INVESTMENTS AND ACQUISITIONS


€ in millions 2010 2009 Change
Investment in property, plant and equipment 758 671 13%
thereof maintenance 44% 50%  
thereof expansion 56% 50%  
Investment in property, plant and equipment as % of sales 4,7% 4,7%  
Acquisitions 644 260 148%
Total investments and acquisitions 1,402 931 51%

€ in millions 2010 2009 Change
Investment in property, plant and equipment 758 671 13%
thereof maintenance 44% 50%  
thereof expansion 56% 50%  
Investment in property, plant and equipment as % of sales 4,7% 4,7%  
Acquisitions 644 260 148%
Total investments and acquisitions 1,402 931 51%

The table shows the distribution of investments by business segment. The chart shows the regional breakdown.

The cash outflows for acquisitions related mainly to the acquisition of dialysis clinics at Fresenius Medical Care, primarily in Asia and Europe. There were no major acquisitions at Fresenius Kabi, Fresenius Helios, and Fresenius Vamed.

The largest single project at Fresenius Kabi was the acquisition of a compounding center in Germany, and at Fresenius Helios it was the acquisition of an acute care clinic.

The main investments in property, plant and equipment were as follows:

  • start-up of 90 de novo dialysis clinics, of which 53 were in the United States, and expansion and modernization of existing clinics at Fresenius Medical Care.
  • expansion and optimization of production facilities for Fresenius Medical Care, especially the expansion of production capacities for dialysis products in Germany, and for Fresenius Kabi, primarily in Germany and India.
  • hospital modernization at Fresenius Helios. The largest single project was the HELIOS clinic in Krefeld. Fresenius Helios also acquired the land and buildings of the clinic in Siegburg.

Investments in property, plant and equipment of €184 million will be made in 2011 to continue with major ongoing investment projects on the reporting date. These are chiefly investment obligations for hospitals at Fresenius Helios as well as investments to expand and optimize production facilities for Fresenius Medical Care and Fresenius Kabi. These projects will be financed from operating cash flow.

INVESTMENTS BY BUSINESS SEGMENT


€ in millions 2010 2009 Thereof property, plant and equipment Thereof acquisitions Change % of total
Fresenius Medical Care 991 549 395 596 81% 71%
Fresenius Kabi 205 157 174 31 31% 14%
Fresenius Helios 179 203 166 13 -12% 13%
Fresenius Vamed 14 7 9 5 100% 1%
Corporate/Other 13 15 14 -1 -13% 1%
Total 1,402 931 758 644 51% 100%

€ in millions 2010 2009 Thereof property, plant and equipment Thereof acquisitions Change % of total
Fresenius Medical Care 991 549 395 596 81% 71%
Fresenius Kabi 205 157 174 31 31% 14%
Fresenius Helios 179 203 166 13 -12% 13%
Fresenius Vamed 14 7 9 5 100% 1%
Corporate/Other 13 15 14 -1 -13% 1%
Total 1,402 931 758 644 51% 100%

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