Operations and Business Environment - Fresenius Medical Care

02. 2
Our Fiscal year
78
Assets and Liabilities
Balance Sheet and Asset Situation
The Company’s total assets increased significantly in
2006. At $13.05 billion, they were substantially higher
than in the previous year (2005: $ 7.98 billion).
In constant currency, the total assets increased by
$ 4.82 billion or 60 %, primarily due to the RCG
acquisition.
Non-current assets rose to $ 9.63 billion, representing
74 % of total assets, compared to 69 % in 2005. Noncurrent
assets include goodwill of $ 6.89 billion. Thereof
goodwill of $ 3.38 billion is related to the acquisition
of RCG, and goodwill of $ 2.11 billion is related to the
founding of Fresenius Medical Care in 1996. Property,
plant and equipment rose by 42 % to $1.72 billion in
2006, primarily as a result of investments of $ 422 million
minus depreciation of $ 265 million and acquisitions
amounting to $ 341 million. More information
on this can be found in the preceding section “Investments
and Acquisitions”.
Current assets also changed significantly due to the acquisition
of RCG, increasing by 39 % to $ 3.41 billion
or 33 % in constant currency. Trade accounts receivable
climbed to $1.85 billion, following $1.47 billion in
2005 – an increase of 22 % in constant currency.
Shareholders’ equity increased significantly by 23 % to
$ 4.87 billion compared to $ 3.97 billion in 2005. This
increase was mainly due to the net income of $ 537
million, the proceeds from share conversions amounting
to $ 307 million, exchange rate effects of $114 million
and proceeds from the exercise of stock options
totaling $ 54 million. The dividend distribution for 2005
of $154 million partially offset this increase. The equity
ratio decreased considerably by 13 percentage points
to 37 % in 2006.
Of the financial liabilities, 82 % are in U.S. dollars. Shortterm
financial liabilities amounted to $ 496 million after
$ 296 million at the end of 2005. The medium- to longterm
financial liabilities amounted to $ 5.08 billion
compared to $1.89 billion in 2005. This increase is due
to the debt-financed acquisition of Renal Care Group.
Assets
2006
2005
$ 13,045 million
$ 7,983 million
74 % 8 % 14 % 4 %
69 % 8 % 18 %
5 %
Non-current assets Other current assets Accounts receivable Inventories
Equity and Liabilities
2006
$ 13,045 million
37 % 45 %
18 %
2005
$ 7,983 million
50 % 30 %
20 %
Shareholders’ equity Non-current liabilities Current liabilities
A detailed representation can be found in the consolidated financial statements in the financial report from page 46 onwards.
Fresenius Medical Care 2006