Asset and liability structure
The decline in the actual values compared to the previous year is mainly due to the application of IFRS 5 and the equity method in accordance with IAS 28 for Fresenius Medical Care, which was previously fully consolidated.
The Group's total assets decreased by 41% (-40% in constant currency) to €45,284 million (Dec. 31, 2022: €76,400 million). The decrease is mainly due to the deconsolidation of Fresenius Medical Care (FMC). Inflation had no significant impact on the assets of Fresenius in 2023.
Current assets decreased by 32% (-30% in constant currency) to €12,520 million (Dec. 31, 2022: €18,279 million). Within current assets, trade accounts receivable and other receivables decreased by 49% to €3,673 million (Dec. 31, 2022: €7,161 million). At 61 days, average days revenue outstanding was above the previous years level (60 days).
Inventories decreased by 48% to €2,517 million (Dec. 31, 2022: €4,833 million). The scope of inventory in 2023 was 62 days (Dec. 31, 2022: 68 days). The ratio of inventories to total assets decreased to 5.6% (Dec. 31, 2022: 6.3%).
Non-current assets decreased by 44% (-43% in constant currency) to €32,764 million (Dec. 31, 2022: €58,121 million). The goodwill and intangible assets in the amount of €17,620 million (Dec. 31, 2022: €35,828 million) has proven sustainable. The addition to the goodwill from acquisitions was €3 million in fiscal year 2023.
Balance sheet overview
Download(XLS, 38 KB)| € in millions | Dec. 31, 2023 | Dec. 31, 2022 |
|---|---|---|
| ASSETS | ||
| Current assets | 12,520 | 18,279 |
| thereof trade accounts receivable | 3,673 | 7,161 |
| thereof inventories | 2,517 | 4,833 |
| thereof cash and cash equivalents | 2,562 | 2,749 |
| thereof other current assets | 3,213 | 3,536 |
| Assets held for sale | 555 | - |
| Non-current assets | 32,764 | 58,121 |
| thereof property, plant and equipment | 8,964 | 12,919 |
| thereof goodwill and other intangible assets | 17,620 | 35,828 |
| thereof right-of-use assets | 1,818 | 5,922 |
| Fresenius Medical Care investment accounted for using the equity method | 3,500 | - |
| Total assets | 45,284 | 76,400 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Liabilities | 25,633 | 44,182 |
| thereof trade accounts payable | 1,488 | 2,164 |
| thereof short-term accruals and other short-term liabilities | 4,920 | 8,242 |
| thereof debt | 15,830 | 27,763 |
| thereof lease liabilities | 1,998 | 6,592 |
| thereof liabilities directly associated with the assets held for sale | 230 | - |
| Noncontrolling interests | 652 | 11,803 |
| Total Fresenius SE & Co. KGaA shareholders' equity | 18,999 | 20,415 |
| Total shareholders' equity | 19,651 | 32,218 |
| Total liabilities and shareholders' equity | 45,284 | 76,400 |
Assets and liabilities - five-year overview
Download(XLS, 38 KB)| € in millions | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Total assets | 45,284 | 76,400 | 71,962 | 66,646 | 67,006 |
| Shareholders' equity1 | 19,651 | 32,218 | 29,288 | 26,023 | 26,580 |
| as % of total assets1 | 43% | 42% | 41% | 39% | 40% |
| Shareholders' equity1 / non-current assets, in % | 60% | 55% | 54% | 51% | 51% |
| Debt | 15,830 | 27,763 | 27,155 | 25,913 | 27,258 |
| as % of total assets | 35% | 36% | 38% | 39% | 41% |
| 1 Including noncontrolling interests | |||||
Shareholders' equity decreased by 39% (-37% in constant currency) to €19,651 million (Dec. 31, 2022: €32,218 million). Group net income attributable to Fresenius SE & Co. KGaA decreased shareholders' equity by €594 million. The equity ratio improved to 43.4% (Dec. 31, 2022: 42.2%).
The liabilities and equity side of the balance sheet shows a solid financing structure. Total shareholders' equity, including noncontrolling interests, covers 60% of non-current assets (Dec. 31, 2022: 55%). Shareholders' equity, noncontrolling interests, and long-term liabilities in total cover all non-current assets and inventories.
Long-term liabilities increased by 47% (-47% in constant currency) to €16,303 million (Dec. 31, 2021: €30,524 million). Short-term liabilities decreased by 32% (-31% in constant currency) to €9,330 million (Dec. 31, 2022: €13,658 million).
The Group has neither provisions nor accruals that are of major significance as individual items. Other provisions and accruals result mainly from provisions for self-insurance programs, for personnel expenses, for warranties and claims, and for litigation and other legal risks.
Group debt increased by 8% to €15,830 million (Dec. 31, 2022: €27,763 million). Its relative weight in the balance sheet was 35% (Dec. 31, 2022: 36%). Approximately 3% of the Group's debt is denominated in U.S. dollars. Liabilities due in less than one year were €2,581 million (Dec. 31, 2022: €3.036 million), while liabilities due in more than one year were €13.249 million (Dec. 31, 2022: €24,727 million).
Group net debt decreased by 0% (-1% in constant currency) to €13,268 million (Dec. 31, 2022 restated: €13,307 million; Dec. 31, 2022 previous: €25,014 million).
The net debt to equity ratio including noncontrolling interests (gearing) is 68% (Dec. 31, 2022 reported: 78%).
The return on equity after taxes1 (equity attributable to shareholders of Fresenius SE & Co. KGaA) was 7.9% (Dec. 31, 2022: 8.5%). The return on total assets after taxes and before noncontrolling interests1 was 3.2% (2022: 3.7%).
Working capital2 amounted to €4,478 million (2022 restated: €4,616 million; 2022 previous: €9,645 million). This corresponds to 20% of sales (2022: 21%).
Group ROIC was 5.2%3 (2022: 5.6%3). Within the position invested capital, goodwill of €15.1 billion had a significant effect on the calculation of ROIC.
It is important to take into account that approximately 75% of the goodwill is attributable to the strategically significant acquisitions of
- HELIOS Kliniken in 2006,
- APP Pharmaceuticals in 2008,
- Hospitals of Rhön-Klinikum AG in 2014,
- Quirónsalud and the biosimilarsBiosimilarsA biosimilar is a drug that is “similar” to another biologic drug already approved. business in 2017, and
- Ivenix and mAbxience in 2022.
Those have significantly strengthened the competitive position of the Fresenius Group.
The WACC (weighted average cost of capital) of the business segments was 5.74% (2022: 5.65%).
1 Before special items
2 Trade receivables and inventories less trade payables and advance payments received
3 Before special items; pro forma acquisitions divestitures
Five-year overview financing key figures1,2
Download(XLS, 36 KB)| Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
|---|---|---|---|---|---|
| Debt / EBITDA | 4.5 | 4.2 | 4.0 | 4.4 | 4.1 |
| Net debt / EBITDA3 | 3.8 | 3.8 | 3.6 | 4.1 | 3.9 |
| EBITDA / financial result | 8.2 | 13.8 | 15.0 | 10.6 | 11.2 |
| 1 Before special items; The previous year's figures were adjusted due to the application of IFRS 5 to the deconsolidated activities of Fresenius Medical Care. |
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| 2 For pro forma acquisitions, the missing pro forma EBITDA for the full 12 months is included. For divestments, the EBITDA contribution of the last 12 months is deducted. | |||||
| 3 At LTM average exchange rates for both net debt and EBITDA | |||||
ROIC by business segments
Download(XLS, 38 KB)| ROIC | ||
|---|---|---|
| in % | 2023 | 2022 |
| Fresenius Kabi1,2 | 7.3 | 7.8 |
| Fresenius Helios1,2 | 5.4 | 5.4 |
| Fresenius Vamed2 | -1.2 | 1.1 |
| Group1,2 | 5.2 | 5.6 |
| 1 Pro forma acquisitions (includes adjustments for acquisitions in the respective reporting period with a purchase price above a certain level); The previous year's figures were adjusted due to the application of IFRS 5 to the deconsolidated activities of Fresenius Medical Care. |
||
| 2 Before special items | ||
Currency and interest risk contracts
The nominal value of the Foreign exchange contracts and currency swaps was €2,405 million as of December 31, 2023. These contracts had a fair value of €27 million.
Contact
Fresenius SE & Co. KGaA
Investor Relations
+49 (0) 6172 608-2485
ir-fre@fresenius.com