ANNUAL REPORT 2015 OLE, A LIFE STORY What we stand for We protect and improve human health all over the world, guided by our values: innovation, efficiency and sustainability. Through a constructive dialogue with our partners and users, we develop effective solutions and trendsetting standards for the healthcare industry. We work every day with physicians, nurses and hospital administrators with one clear goal: We are working to improve lives. After all, health as well as high-quality healthcare mean a high quality of life. For millions of patients in hospitals, medical practices and nursing facilities, for billions of people worldwide, in their personal environments and everyday routines. For each and every one of us. That is why, in this annual report, we tell the story of the life of Ole, a story that illustrates how we work with our partners to protect and improve people’s health and lives. OLE+B. BRAUN 2 MANAGEMENT 2 Management Board 3 Foreword 5 Sharing Expertise: Connecting partners and expertise 6 FOR LIFE 13 1991 – Into the scuffle 19 2004 – The joy of parenthood 25 2009 – The back strikes 31 2016 – Thoughts on aging 32 GROUP MANAGEMENT REPORT 34 Five-year overview 35 About the B. Braun Group 42 Economic report 59 Subsequent events 60 Risk and opportunities report 65 Outlook 70 CONSOLIDATED FINANCIAL STATEMENTS 72 Consolidated Statement of Income 72 Consolidated Statement of Comprehensive Income 73 Consolidated Statement of Financial Position 74 Consolidated Asset Analysis 76 Consolidated Statement of Changes in Equity 78 Consolidated Statement of Cash Flows 79 Information about the Notes to the Consolidated Financial Statements 79 Note concerning the Independent Auditors’ Report 80 REPORT OF THE SUPERVISORY BOARD 83 GLOSSARY For the sake of simplicity, the masculine form will be used exclusively to refer to employees and customers in this annual report. Of course, both genders are intended. Discover B. Braun’s annual report on your PC, tablet or smart phone and view additional informational graphics and videos. www.bbraun.com/ole 2 MANAGEMENT BOARD from left Markus Strotmann | B. Braun Avitum Division Otto Philipp Braun | Out Patient Market (OPM) Division and Region Iberian Peninsula and Latin America Caroll H. Neubauer LL.M. | Region North America Dr. Meinrad Lugan | Hospital Care Division Prof. Dr. Heinz-Walter Große | Chairman of the Management Board, Human Resources, Legal Affairs and Director of Labor Relations Dr. Annette Beller | Finance, Taxes, Controlling and Central Services Prof. Dr. Hanns-Peter Knaebel | Aesculap Division 3 FOREWORD FOR LIFE 2015 was an eventful year for B. Braun. An important driver was our “Strategy 2020” initiative: As a “System Partner in Healthcare,” we want to better our understanding of our customers’ issues and collaborate with them to develop appropriate and innovative solutions. The foundation of this partnership is based upon more than 5,000 products and 120,000 SKUs, as well as services for 18 therapy fields and applications. In other words, the full range of what B. Braun has to offer. Our intentions and goals are quite clear: We seek to develop and implement safe and effective solutions that will simplify the daily routine in hospitals, medical practices, and home care. We innovate and develop more efficient processes to create new standards in protect- ing and improving human health. We have several examples to report on from 2015. The acute dialysis machine OMNI not only supports renal function, but also treats other serious illnesses. Our Cyto-Set® facilitates the preparation and administration of cytostatic drugs in chemotherapy, and its intuitive design minimizes the risk of contamination from improper use. Other noteworthy pilot projects include the MRSA decolonization before endoprosthetic procedures in cooperation with hospitals in Kassel and Bremen. The activ® L artificial disc became the first lumbar disc prosthesis approved in the US market with a sophisticated motion system, creating an alternative to spinal fusion. In its 176-year history, B. Braun has always been preparing for the future by setting the right course early on. This is also how we have approached today’s buzzword, “digitization.” Ten years ago we introduced a fully IT-supported production with our LIFE factory for standard IV solutions. And we plan to continue to capitalize on synergies and develop new potential by harmonizing global processes. In 2015 we hosted the “16th Career Day for Family-Owned Businesses” in Germany. We were recognized as “Best Employer” in Hungary and were honored with the “Investor in People Award” in the United Kingdom. We also celebrated the 20th anni- versary of the Aesculap Academy and the dedication of the Innovation Factory, the largest investment project in the history of our Aesculap organization. Additionally, our fellow employees, the workers’ council, and management provided assistance to victims of natural disasters in Nepal and China, as well as for the refugees in Europe. These are some fine examples of how engaged and committed our employees are, indicating a promising future. 4 The Management Board of B. Braun Melsungen AG is pleased with the company’s financial performance in 2015. B. Braun’s revenues increased by 12.9 percent, exceeding our projections. This remarkable performance was only possible through the dedicated efforts of and trustful cooperation with our fellow employees, and for that I would like to extend my sincere gratitude to all 55,719 members of our B. Braun organization. In the coming year, we will continue to conduct our business as a “system partner” and serve people all over the world by trusting in the principles which have made us successful since 1839: to act responsibly at all times and with our “Sharing Expertise” philosophy to improve healthcare today and tomorrow. We, of course, intend to maintain our successful course. Our goal is to grow our revenues by five to seven percent annually and to exceed sales of 8 billion euros by the year 2020. We are all engaged and committed to this goal. 2015 was definitely an eventful year for each and every one of us. There were personal highlights as well as distressing moments. Life is motivating. It tests us, and even surprises us at times. Life can be challenging, but we are convinced that together and in unity we will thrive. This is exactly what we want to express with Ole’s story in this annual report. Ole, the central character of this year’s annual report, is a family man from Munich who has opened his private photo album to tell us about his life. Ole is not a ficti- tious character. He is a real person, and he serves as an example of the richness of life that we work for every day at B. Braun. I invite you to discover the many aspects of Ole’s life in this annual report, and hope you will find it enjoyable and interesting! With kind regards, Prof. Dr. Heinz-Walter Große Chairman of the Management Board of B. Braun Melsungen AG 5 SHARING EXPERTISE CONNECTING PARTNERS AND EXPERTISE Hemodialysis Acute blood purification Apheresis Nutrition Diabetes Care Therapy nurse Infusion Therapy Wound Partnership Management means continually creating trust and understanding through constructive exchanges and pharmacist opening new perspectives. patient Process Optimization Progress Pain Therapy means leaving old ways behind, means continually challenging Infection identifying new opportunities and encouraging customers, Prevention and bringing forward effective partners, physicians, medical pro- solutions to improve the fessionals and patients to pursue efficiency of treatment. developments which break Safety new ground and move means using all us forward. General Open expertise and experience Continence Care Surgery with regard to processes and and Urology procedures in treatment areas in surgeon order to perserve and protect the physician health of those we serve. Cardio-Thoracic Ostomy Care Surgery hospital administrator Interventional Neurosurgery Degenerative Laparoscopic Vascular Diagnostics Spinal Disorders Surgery and Therapy Orthopaedic Joint Replacement 6 Ole If someone asks me what I do, I always stammer a bit. I do … a lot of very different things. I’m a journalist and an author, an event manager for a TV station and, in the winter, I organize ski camps. Sound hectic? It is! There’s also a lot going on at home. I have two sons with my wife Maren, she’s a gymnastics teacher: Jan is eleven and Till is seven. I’m happy that we live in the suburbs and have a garden. The boys can run around there. When we moved to the suburbs twelve years ago from our home in downtown Munich, I was afraid that I would get bored. But now, I enjoy small-town life. Three old taverns, two good butchers, a baker who still bakes his own bread. And the city isn’t far. Maren and I often go downtown to eat at a restaurant or see a movie. Not long ago, we were at the exhibit for the fashion designer Jean-Paul Gaultier. My wife and I think alike; there’s just one area where we have fundamental differences: exercise. For Maren, it always has to be short and sweet: full-speed ahead a while and then done. She’s a sprinter, what do you expect? We both played rugby when we were young, but today I’m more interested in the long haul. I like things to be more relaxed, whether I’m swimming, running or cycling. At least I’ve been able to get Maren interested in cycling more often lately. Maybe we can make exercising together work after all. At 41, of course, I can no longer lead the wild and exciting life of a student. But there are also advantages to being older. I’m calmer. I know what I want in life.