• Asset and liability structure
• Currency and interest risk management

Asset and liability structure

The total assets of the Group rose by €2,695 million (13%) to €23,577 million (December 31, 2009: €20,882 million). In constant currency, this was an increase of 7%. This growth was mainly due to the expansion of existing business activities. Inflation had no significant impact on the assets of Fresenius in 2010.

Non-current assets were €17,142 million (2009: €15,519 million). The increase was driven mainly by additions to property, plant and equipment and to intangible assets.

Current assets rose by 20% to €6,435 million (2009: €5,363 million). Within current assets, trade accounts receivable rose by 17% to €2,935 million (2009: €2,509 million). At 67 days, average days sales outstanding was slightly above the previous year’s level of 65 days. Through strict accounts receivable management we were able to keep average days sales outstanding stable despite the continued difficult financial operating environment. Inventories rose by 14% to €1,411 million (2009: €1,235 million). The 48 days scope of inventory in 2010 was unchanged compared to 2009. The ratio of inventories to total assets increased slightly to 6.0% as of December 31, 2010 (December 31, 2009: 5.9%).

Shareholders’ equity, including noncontrolling interest, rose by 18%, or €1,353 million, to €8,844 million (2009: €7,491 million). Group net income attributable to Fresenius SE & Co. KGaA increased shareholders’ equity by €622 million. The equity ratio, including noncontrolling interest, rose to 37.5% as of December 31, 2010 (December 31, 2009: 35.9%).

The liabilities and equity side of the balance sheet shows a solid financing structure. Total shareholders’ equity, including noncontrolling interest, covers 52% of non-current assets (2009: 48%). Shareholders’ equity, noncontrolling interest, and long-term liabilities cover all non-current assets and 36% of inventories.

Long-term liabilities decreased by 9% to €8,813 million as of December 31, 2010 (2009: €9,702 million). Short-term liabilities increased by 62% to €5,711 million (2009: €3,528 million). This is due to the fact that the Mandatory Exchangeable Bonds (MEB) in a nominal value of €554 million and Trust Preferred Securities in a nominal value of €468 million will be maturing in the coming year.

The Group has no significant accruals. The largest single accrual is to cover the settlement of fraudulent conveyance claims and all other legal matters relating to the National Medical Care transaction in 1996 that resulted from the bankruptcy of W.R. Grace. The accrual amounts to US$115 million (€86 million). Please see note 29, Commitments and contingent liabilities Operating leases and rental payments for further information.

Group debt rose to €8,784 million (2009: €8,299 million). In constant currency, the increase was 1%. Its relative weight in the balance sheet declined to 37.3% (2009: 39.7%). Approximately 57% of the Group’s debt is in U.S. dollars. Liabilities due in less than one year were €1,496 million (2009: €550 million), while liabilities with a remaining tenor of one to five years and over five years were €7,288 million (2009: €7,749 million).

The net debt to equity ratio including noncontrolling interest (gearing) has improved and is 90.6% (2009: 105.2%). The return on equity after taxes (equity attributable to shareholders of Fresenius SE & Co. KGaA) rose to 13.3% (2009: 12.1%) and the return on total assets after taxes and before noncontrolling interest increased to 5.3% (2009: 4.8%); the above figures have been adjusted for the effects of the mark-to-market accounting of the MEB and the CVR.

The table below shows other key assets and capital ratios: