- Financial management policies and goals
- Financing
- Effect of off-balance-sheet financing instruments on our financial position and assets and liabilities
- Liquidity analysis
- Dividend
- Cash flow analysis
- Investments and acquisitions
Cash flow analysis
The cash flow statement shows a sustainable development, as can be seen from the chart. Cash flow increased by 9% to €2,054 million (2010: €1,886 million). This was mainly due to the Group’s excellent earnings1 performance. In 2011, the change in working capital was -€445 million (2010: -€13 million), mainly due to business expansion.
CASH FLOW STATEMENT (SUMMARY)
| € in millions | 2011 | 2010 | Change | Margin |
|---|---|---|---|---|
| The detailed cash flow statement is shown in the consolidated financial statements. | ||||
| Earnings after tax | 1,328 | 1,205 | 10% | |
| Depreciation and amortization | 674 | 639 | 5% | |
| Change in pension provisions | 52 | 42 | 24% | |
| Cash flow | 2,054 | 1,886 | 9% | 12.4% |
| Change in working capital | -445 | -13 | -- | |
| Change in mark-to-market valuation of the MEB and CVR | 80 | 38 | 111% | |
| Operating cash flow | 1,689 | 1,911 | -12% | 10.2% |
| Property, plant and equipment | -783 | -754 | -4% | |
| Proceeds from the sale of property, plant and equipment | 25 | 21 | 19% | |
| Cash flow before acquisitions and dividends | 931 | 1,178 | -21% | 5.6% |
| Cash used for acquisitions/proceeds from disposals | -1,314 | -504 | -161% | |
| Dividends | -365 | -329 | -11% | |
| Cash flow after acquisitions and dividends | -748 | 345 | -- | -- |
| Cash provided by/used for financing activities (without dividends paid) | 607 | -23 | -- | |
| Effect of exchange rate changes on cash and cash equivalents | 7 | 27 | -74% | |
| Change in cash and cash equivalents | -134 | 349 | -138% | |
Operating cash flow was €1,689 million in 2011 (2010: €1,911 million). The cash flow margin of 10.2% was below the extraordinary previous year’s margin of 12.0%. 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 €783 million, and proceeds from the sale of property, plant and equipment were €25 million (2010: €754 million and €21 million, respectively).
Cash flow before acquisitions and dividends was €931 million (2010: €1,178 million). This was sufficient to finance the Group dividends of €365 million. Group dividends consisted of dividend payments of €140 million to the shareholders of Fresenius SE & Co. KGaA, payments of €197 million by Fresenius Medical Care to its shareholders, and dividends paid to third parties of €97 million. These payments were offset by the dividend of €69 million which Fresenius SE & Co. KGaA received as a shareholder of Fresenius Medical Care. Almost one third of net acquisition expenditure of €1,314 million was financed by cash flow, the remainder by debt.
The cash inflow from financing activities (without dividend payments) was €607 million (2010: -€23 million). In 2011, it was predominantly characterized by the partial debt financing of acquisitions. Cash and cash equivalents as of December 31, 2011, were €635 million (December 31, 2010: €769 million).
1 Net income attributable to Fresenius SE & Co. KGaA
Dividend
Investments and acquisitions