• Management Report 
  • Operations and Business Environment 
  • Results of Operations, Financial Position, Assets and Liabilities 
    • Results of Operations 
    • Financial Position 
    • Assets and Liabilities 
  • Non-Financial Performance Indicators and other Success Factors 
  • Overall Assessment of the Business Situation 
  • Opportunities and Risk Report 
  • Subsequent Events 
  • Outlook 

Home Management Report Results of Operations, Financial Position, Assets and Liabilities Assets and Liabilities

ASSETS AND LIABILITIES

Asset and liability structure

The total assets of the Group rose by € 5,220 million (34%) to € 20,544 million (December 31, 2007: € 15,324 million). In constant currency, this is an increase of 31%. Of this growth, 27% is attributable to the acquisitions in 2008, especially APP Pharmaceuticals. The expansion of existing business activities accounted for 4%. Inflation had no significant impact on the assets of Fresenius in 2008.

Non-current assets were € 15,466 million (2007: € 11,033 million). Based on the exchange rates as of December 31, 2007, this was an increase of 36%, and was driven by additions to property, plant and equipment, as well as acquisitions. Goodwill from acquisitions was € 3,121 million as of December 31, 2008, of which € 2,637 million was attributable to the acquisition of APP Pharmaceuticals.

Current assets rose by 18% to € 5,078 million (2007: € 4,291 million). In constant currency, this is also an increase of 18%. Within current assets, trade accounts receivable rose by 15% to € 2,477 million, primarily due to business expansion as a result of acquisitions (2007: € 2,159 million). Average days sales outstanding (DSO) of 71 days was on previous year’s level. The acquisition of APP Pharmaceuticals had a positive effect while DSO increased at Fresenius Medical Care and Fresenius Kabi. Inventories rose by 29% to € 1,127 million (2007: € 875 million). The scope of inventory (SOI) was 48 days in 2008 (2007: 42 days). This was affected by the firsttime consolidation of APP Pharmaceuticals. The ratio of inventories to total assets slightly decreased to 5.5% as of December 31, 2008 (December 31, 2007: 5.7%).

Shareholders’ equity, including minority interest, rose by 15%, or € 884 million, to € 6,943 million (2007: € 6,059 million). In constant currency, this is an increase of 12%. Group net income increased shareholders’ equity by € 270 million. The capital increase in the third quarter of 2008 to finance the APP Pharmaceuticals acquisition added € 289 million. The equity ratio, including minority interest, was 33.8% as of December 31, 2008 (December 31, 2007: 39.5%).

The liabilities and equity side of the balance sheet shows a solid financing structure. Shareholders’ equity of the Group, including minority interest, comprises 45% of non-current assets (2007: 55%). Together, shareholders’ equity, minority interest, and long-term liabilities cover all non-current assets and 81% of the inventories

Long-term liabilities were € 9,432 million as of December 31, 2008, an increase of € 3,670 million compared to the previous year’s figure of € 5,762 million. The large increase is mainly attributable to the financing of the APP Pharmaceuticals acquisition. Short-term liabilities were € 4,169 million, an increase of 19% versus the previous year’s figure of € 3,503 million.

ASSETS AND LIABILITIES – 5-YEARS OVERVIEW
in million €	2008	2007	2006	2005	2004
Total assets	20,544	15,324	15,024	11,594	8,188
Shareholders’ equity*	6,943	6,059	5,728	5,130	3,347
As % of total assets*	34	40	38	44	41
Shareholders’ equity*/non-current assets (%)	45	55	52	64	62
Debt	8,787	5,699	5,872	3,502	2,735
As % of total assets	43	37	39	30	33
Gearing (%)	121	88	98	63	78

*	including minority interest