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IntegrierterAnnual
Geschäftsbericht
2023
Integrated
Report 2023

EmpoweredEmpoweredby Technology
technology

Integrierter Geschäftsbericht 2023

Sales by region (EUR million)
Europe without Germany

North America

Germany

2,917
Aesculap
2,164

2,304

1,353

Asia-PacificContent

Sales by division (EUR million)

Management

Avitum
1,849

Executive Board4
Foreword6

1,320
Hospital Care
4,694

Latin America 566

JournalAfrica and the Middle East 295

206.0

64

EUR million
profit before taxes

countries

1,019.4

8,755.0

EUR million
EBITDA

EUR million
sales

698.5

EUR million
investments

63,011484.6

employees

EUR million research anddevelopment activities

Statement of income
2023

EUR million

EUR million

Sales8,499.8

8,755.0

3.0

5,268.6

5,432.6

3.1

Gross profit

3,231.2

3,322.4

2.8

Functional expenses

2,901.8

2,887.6-0.5

2,360.5

2,403.0

1.8

541.2

484.6

-10.5

Interim profit

329.4

434.8

32.0

Profit before taxes

178.7

206.0

15.3

Consolidated net income

142.2

125.2

-12.0

EBIT

247.9

316.2

27.6

EBITDA

997.2

1,019.4

2.2

Research and development expenses

8

Additive Manufacturing
Three-dimensional precision opens new possibilities

10

Systematic Analysis
Recognizing optimization potential through transparency
in the product life cycle

12Common Cause
We protect and improve the health of people
around the world 14

Our responsibility

16

Group management report

36

Consolidated financial statements

62

Report of the Supervisory Board

132

Change in percent

Costs of goods soldSelling and general administrative expenses

2

2022

Smart maintenance
Artificial intelligence proves itself in medical technology

The German version of the Integrated Annual
Report 2023 is authoritative. This translated
English version was prepared by the management of B. Braun SE.

3

Executive Board

From left:
Dr. Jens von Lackum | Aesculap
Dr. Stefan Ruppert | Human Resources, Legal Affairs and Labor Relations
Anna Maria Braun, LL.M. | CEO, Avitum
Dr. Annette Beller | Finance, Taxes and Central Services
Markus Strotmann | Hospital Care

45

Foreword

Dear Readers,
Our fiscal year 2023 marks the end of the first phase of our strategic framework, B. Braun—the next
decade. Over the past three years, we have worked hard to make new technologies available to the healthcare sector. We use these technologies to enhance the benefits of our core medical products with otherproducts, services or digital systems. This is how we are creating tangible progress—for our customers, andfor improved patient care.
Along with our strategy, we continued to grow our business in 2023 again in a demanding environment.
Sales rose 3.0 percent to 8.8 billion euros and our earnings grew 15.3 percent. This proves that we have theexperience and skills to navigate through volatile times. In addition, we invested 1.2 billion euros in technology, production capacity, and research and development based on our long-term view. These investments
will strengthen our foundation as an independent, family-owned company.

“With our committed employees, a clear set of values
and the possibilities of new technologies, we are well
positioned for the next phase of our strategy. Together,
we continue to fulfill our vision to be a leading
medical technology company that protects andimproves the health of people around the world.”

Everyday our 63,000 employees use their diverse perspectives and experiences to ensure that B. Braundevelops smart solutions and sets standards as a true partner. I sincerely thank them for their motivation,
hard work and ability to embrace change.
With our committed employees, a clear set of values and the possibilities of new technologies, we are well
positioned for the next phase of our strategy. Together, we continue to fulfill our vision to be a leading
medical technology company that protects and improves the health of people around the world.
Best regards,

Anna Maria Braun
CEO

6

7

Smart maintenance
Artificial intelligence provesitself in medical technology
Artificial intelligence (AI) makes it possible to detect disease sooner, understand it better and develop
the right treatment. AI is playing an increasingly important role in medical technology—and is being usedsuccessfully at B. Braun. One example is the Service Assistant developed by B. Braun for dialysis machine
maintenance.
The Service Assistant uses AI to analyze sensor data from the machine to determine the exact status of
the components. Second, the program offers a chatbot that is based on a large language model, somethingsimilar to ChatGPT. This allows the program to interpret the questions the service engineer asks. It scanscurrent service documents for the answer and displays it on the screen.

“The Service Assistant will
make my work servicing dialysis machines better. I think
AI is a fascinating tool.”
Claudia Esteban Patón, Technical
Services, B. Braun, Valencia, Spain“We worked in an interdisciplinary team from softwaredevelopment, AI development
and Technical Services. Now
it’s a question of working
together with the users to expand the app’s functionality.”“We’re going to benefit more
and more from the huge
potential of AI in medical
technology. At the same time,
protecting and securing data
will have top priority.”

Dr. Philipp Leise, Developer Intelligent

B. Braun, Melsungen, Germany

Dr. Michele Heber, Lead AI Hub,Services, Commercial Excellence,
B. Braun, Melsungen, Germany

Find out more!

8

Discover what other possible uses AI has
in medical technology.

9

It sounds like a bold vision: a robot applies a thin layer of titanium powder onto a plate, then a laser melts it with micrometer
precision at preprogrammed points to form a three-dimensional
shape. Layer by layer, a custom implant is formed, with a filigreesurface and a complex lattice structure—properties that promoteadherence to the surrounding bone tissue while also giving it thestability and elasticity to reproduce the natural qualities of bone.

Additive Manufacturing
Three-dimensional precision opens new possibilities

The additive manufacturing process described here, also widely
known as 3D printing, is implemented at B. Braun’s manufacturing site in Tuttlingen, Germany. The implants manufactured thisway for intervertebral disks or hip sockets are some of the mosteffective in the world. They also make the potential of additive
manufacturing clear: fast, flexible, sustainable, digital, individual, precise.

“The implant‘s design plays a crucial role in the manufacturing process.
The major advantage of 3D-printed implants is that they have a superior
structure that allows the bones to adhere faster and better. It’s plain to see.”Dr. Frank Kandziora, Head of the Center for Spine Surgery and Neurotraumatology at
BG Unfallklinik Hospital, Frankfurt, Germany.

Find out more!
Discover how anatomically inspired design meetsmodern manufacturing technology.

10

11

Systematic
Analysis
Recognizing optimization potential throughtransparency in the product life cycle

Health care is responsible for 4.4 percent of the world’s emissions—around thesame amount as air transport or shipping. This clearly demonstrates the importance of sustainability in the health care industry. Yet, before emissions can beeffectively reduced and their impact on the environment mitigated, they firstneed to be measured. This is exactly what the life cycle assessment (LCA) pursued by B. Braun does.

“The life cycle assessment is a relatively new topic in
medical technology. There are good reasons for this.
The sector is heavily regulated. The requirementsfor production and disposal are very high, and theprocesses are correspondingly well-honed. Also, thisisn‘t about just any consumer product, we‘re talking
about people’s health. Nevertheless, there is currently
a shift in thinking underway. We can meet the highstandards while also making product life cycles moresustainable. But to do this, one needs detailed information.”
Dr. Tobias Viere, Professor of Energy and Material Flow Analysis at
the Institute for Industrial Ecology at Pforzheim University, Germany

12

An LCA focuses on a specific product and its entire life cycle: from procurementof the raw materials to transport, through production and use, to disposal. It
determines the potential impact on humans and the environment. As a familybusiness with a focus on future generations, B. Braun is committed to energy
efficiency, climate protection and resource conservation. LCA data analyses are
particularly useful for products that we produce in large quantities. We always
ask the following questions: Where can we reduce energy consumption? Where
can we save raw materials? And how can we increase the amount of recycling
in disposal?

Find out more!
Join us as we investigate, analyze and assess
how our products affect the environment.

13

CommonCause
We protect and improve the health ofpeople around the world
The B. Braun name stands for more than medical technology. We also create an inspiring and supportive work environment. To us, the company’s success is tied to the welfare of its employees.
This is why we promote a culture that offers room for growth, creativity and cooperation, and ischaracterized by trust, accountability and diversity.
In individual video contributions, B. Braun employees provide insights into their daily work. They
embody our corporate culture and inspire us every day. We asked them why they think B. Braun isa good employer, and why their job is often more than just a job to them. Without giving too muchaway, let‘s just say that they all have a work environment that encourages them to be themselves,to grow, to learn and to unleash their full potential.

Find out more!
“The work atmosphere here is super cool. And I feel a certain senseof significance in my work because, well, in the end, everything is
for the patient. This is why it is really important to me and the entire team that we do everything right. I’m very proud of my work.
Everything comes through me in the incoming goods department.”
Kim Wiederkehr, Logistics Apprentice,
B. Braun, Sempach, Switzerland“B. Braun is a great employer. I’m not given a task that I have todo, but rather a problem that I get to solve. And I have a lot of
freedom in how I solve it. It’s a great way to work. Working in the
medical field gives me a sense of satisfaction because I know that
my work is being used in a meaningful way.”

Share our common cause and learn about the diversity of
our employees, and their jobs.

“One highlight of my job is the fact that I play a small part in thesurgical operation. I know that the doctor and the patient needreally sharp instruments. Everyone here is proud of their work. We
all want the best for the patient. B. Braun isn’t just a job. Once you
get here, you don’t go anywhere else. You‘re not here for the job—you‘re here for life.”
Jonathan Apgar, Mobile Repair Technician,B. Braun, New Jersey, USA

Adrian Ramos, Robotics Engineer,
B. Braun New Ventures, Freiburg, Germany

14

15

Sustainability is one of our company values andis firmly embedded in our Group strategy. We
understand that this means utilizing the resources available to us in a way that is economically, ecologically, and socially responsible.

Our responsibility
01 Sustainability management
02 Environment

This is why we make our business decisions

03 Social responsibility

with the generations of today and tomorrow in

04 Governancemind. As one of the world’s leading medical
technology companies, we take responsibility
in the pursuit of protecting and improving thehealth of people around the world. We acknowledge our shared standards and global
goals and implement them with local contributions.

Our responsibility
Sustainability management

Our responsibility
Sustainability management

Sustainability management

Sustainability management

Sustainability management

shown in our materiality matrix confirm that productquality and safety have the highest priority. Ethicalprinciples and human rights are also very significant
to us, and we link them to meeting social standards,
especially in the supply chain. In addition, data security and data protection in the face of digital transformation in business and society continue to be ofincreasing importance to us.

Strategy and goals
We spent 2023 continuing to pursue our strategic focus, to gradually incorporate sustainability into all ofour business models, processes, and management
functions. Modern technologies and continuous improvement are key to successfully implementing sustainability across the company’s value chain. We are
driving advancements in health care and developing
solutions to address climate change, resource scarcity and social inequality at the same time.

We began updating our materiality matrix by conducting what is known as a double materiality analysis in accordance with the latest reporting standards
in preparation for meeting the standards of the Corporate Sustainability Reporting Directive (CSRD). Under this new European directive, in 2025 we will begin
to report on both the effects of our operations onhumans and the environment (impact) as well as how
environmental and social sustainability aspects affect
B. Braun (risks and opportunities). We will then beginaligning our sustainability goals with this updated
materiality matrix.

Materiality
Based on our materiality analysis, we are steering andprioritizing the content and direction of our sustainability activities. We evaluated the topics significant
to B. Braun and its stakeholders in 2021. The results

Action and reporting framework

Organizational structure

We compile our annual report in compliance with
Global Reporting Initiative (GRI) standards and baseour sustainability goals on those of the United Nations (Sustainable Development Goals, or SDGs). We
report on the countries with the most employees,
starting with those that have approximately 1,000 or
more, and the countries where our production sites
have 50 employees or more. We added another production site to our 2023 report and included it retroactively in the 2021 and 2022 data. We have also
taken steps to increase precision when compiling ourdata. We were able to cover 27 countries and over 93
percent of all B. Braun employees in the reportingyear.

In recent years, we have expanded our corporate
structure to strengthen the Group’s sustainable corporate activities, from strategy to implementation.
The global sustainability team, which has been responsible for the topic within the Group in its own
Group Sustainability department since 2022, sets thecornerstones for sustainability at B. Braun. The department puts the necessary activities in motion andensures their implementation. It monitors sustainability-related requirements, coordinates the global sustainability network, and helps other departments
exchange ideas regarding sustainable approaches. The
department reports directly to the CEO.

A comprehensive sustainability management system
helps us efficiently and uniformly process and analyze
the sustainability data from the participating central
and specialist departments and national subsidiaries
involved as well as to develop appropriate measures
to grow our sustainability efforts.

The Sustainability Steering team, made up of experts
from various departments, offers advice on B. Braun’s
strategic focus for all sustainability topics. The departments and committees are supported by our global
sustainability network of national coordinators andsubject matter experts. The colleagues responsible forsustainability in the central and specialist depart-Materiality matrix

Overview of goals
Progress

Emissions & resource conservation
Reduction of Scope 1 and 2 CO₂eq emissions by
50 percent worldwide by 2030

2021

-13.1%
2023

CO₂eq neutrality for new buildings and 50 percent
reduction in emissions from existing buildings in need ofrenovation from 2023

-50%
2030

100%

Sustainable products & services
Development of a Group-wide guideline for the
reduction, reuse and recycling through the use of
new technologies by 2023

100%

Occupational health & safety
Roll out global occupational management standards
at all production sites by 2023

100%

Supplier evaluation
Evaluation of 80 percent of our yearly procurement
volume through independent providers in terms ofsustainability by 2023
incl. B. Braun Service SE & Co. KG

1Reduction of CO₂eq emissions by
7.2 percent compared to theprevious year.
Extension building in Melsungen iscurrently under construction andwill be CO₂eq neutral.
Development of a global guideline for more sustainable packaging.
Goal for all global production
sites has been achieved.

Product quality & safety
Corporate governanceOccupational safety, health & well-being
Responsible supply
chain management

2021

2023

17%
2026

80%

Data privacy & security

Talent management
Innovation & R&D

Diversity, equality & inclusion

Water management

Implementation of a mentoring
program for women.
We were able to evaluate around
80 percent of our procurement
volume.

Human rights

Employee attraction & development

Climate change & energy efficiency
13% 14%

Access to health care
Sustainable solutions

Ethics & compliance

Waste management

Social commitment

significant

Diversity
17 percent of positions in the first and second managementlevels below the Executive Board held by women by 20261

18

Status as of December 31, 2023

External stakeholder groups

Goalvery significant

sorted by ESG

significant

Internal stakeholder groups

very significant

19

Our responsibility
Sustainability management | Environment

Our responsibility
Environment

Sustainability management | Environment
Environment

Number of employees in reporting countries
as of December 31, 2023

Country

Employees

Percentage

Germany

15,447

24.5

United States

8,591

13.6

Malaysia

7,450

11.8

Russia3,441

5.5

Poland

2,539

4.0

Spain

2,459

3.9

Hungary

2,428

3.9

France

2,033

3.2

India

1,821

2.9

China

1,449

2.3

Vietnam

1,344

2.1

Brazil1,339

2.1

United Kingdom

1,276

2.0

Switzerland

1,057

1.7

Romania982

1.6

Czechia & Slovakia

950

1.5

South Africa

805

1.3

Italy

701

1.1

Indonesia

449

0.7

Japan

436

0.7

Peru

426

0.7

Colombia405

0.6

Thailand277

0.4

Bulgaria272

0.4

Argentina

233

0.4

Kenya

182

0.3

Total

58,81093.3

Other countries

4,201

6.7

B. Braun Group

63,011100.0

ments at Group headquarters and in the national
companies implement these approaches and set theassociated goals. The Executive Board is responsible
for setting and documenting goals and providing
management review.

20

Management approach
As a family-owned company focused on future generations, we are committed to energy efficiency, climate protection, and resource conservation aroundthe world. We are examining B. Braun’s impact on theenvironment over the life cycle of our products andare successively introducing this approach to the coreproducts in our portfolio. We are also increasingly reliant on new technologies and renewable energy, andare developing methods to reduce our impact on theenvironment.
One essential aspect is to leverage more sustainability potential in our production processes and throughthe use of materials. That is why we design our production processes to be as energy-efficient as possible. Comprehensive energy management helps us
achieve this. We have set the goal of cutting our
Scope 1 and 2 CO₂eq emissions at our B. Braun locations 50 percent by 2030, compared to 2021.
Management systems
The B. Braun Executive Board and the European Works
Council have agreed to uniform environmental, healthand safety standards. This is how we ensure a uniform
procedure and comparable management structures inall European production sites for these topics. We also developed uniform environmental and health andsafety standards in the reporting year, these will bemandatory for our locations outside Europe. We will
be rolling these standards out in the 2024 fiscal year.
We also saw our environmental management system
certified under ISO 14001 at our production site in
Bhiwadi (India) for the first time this year, bringing thetotal share of production sites in our reporting countries that have established and certified an environmental management system under ISO 14001/equEU4
to 76 percent. Using a system of randomized internal
audits, we evaluate our production sites for deviations
from our standards, which helps implement an on-site
continuous improvement process. We put a particularfocus on the continuous improvement of energy effi-

Environment
ciency. To do this, we are introducing intelligent energy management systems based on ISO 50001 global
requirements. Under this standard, 15 production
sites — some of them with multiple production facilities — are certified and seven others have had energy
audits performed by external auditors.
Climate protection and energy efficiency
At B. Braun, we primarily require energy in the formof electricity to operate production machinery andsystems, to produce thermal energy to use to generate steam and to provide heating and air conditioning
where it is necessary for production areas. B. Braun isstriving to continuously reduce its energy consumption through energy efficiency projects. We are looking to state-of-the-art technology to help us refine
our infrastructure and are basing our activities on theadvancement of that technology. One example of thisis avoiding the use of high energy consumption equipment such as chillers or compressed-air systems foropen cooling systems in new facilities, or by utilizing
heat recovery systems.
Our total energy consumption, consisting of electricity consumption and thermal energy, dropped 2.7 percent compared to the previous year. We were able toincrease our share of renewable energy sources by
4.8 percent year over year.
Steam consumption at our location in Zibo (China),
was reduced by 30 percent by upgrading the facility’s
distribution system. Usage optimization and the resulting pressure level reduction has saved our locationin Roth (Germany) around 27 percent in energy. Evenchanging consumption habits, such as shutting off
heating systems or adding motion sensors to lighting,can reduce total energy consumption, as seen at our
location in Timișoara (Romania), where this change inbehavior reduced total energy consumption by about
40 percent.
When it comes to new construction, our goal is todesign and build for CO₂eq neutrality. For major renovations to existing buildings, we seek to reduce
CO₂eq emissions by at least 50 percent compared to
the facility’s original state.

In some of our latest construction projects, we aresetting new benchmarks for sustainability—our pioneering landmark N.I.C.O. (New Infection Control Operations) facility at our production site in Sempach(Switzerland) will not only double production capacity to meet growing demand but also set standards forrenewable energy. Our use of geothermal energy generates carbon-neutral heat for production and buildings, saving 20–30 percent on energy. This energy
generation concept saves us around 100,000 litersof fuel oil, or around 266 metric tons of CO₂ every
year.
For the expansion of our location in Melsungen (Germany) we are placing particular focus on the latest
technology and sustainability in order to improve ourgrowth potential, which will pave the way for the cutting-edge production of dialysis machines and infusion pumps. We are implementing a comprehensive
energy concept in which we combine the latest technology with the building’s physical plant for this project. By using photovoltaics, energy recovery, heatpumps, an underground ice storage tank of over 1,000
cubic meters, as well as taking advantage of regenerative power, this project will be the first to achieve
CO₂eq neutrality in both building operations and production processes.
Intact ecosystems are the essential foundation forsustainable living. This is why we are particularly concerned with maintaining biodiversity. In 2023, we
identified every site that is in a conservation area asdefined by the European Commission so that we cancontinually evaluate and minimize our potential impact on these areas. Only three of our locations are inareas defined as protected: São Gonçalo (Brazil),
Melsungen (Germany) and Escholzmatt (Switzerland).
Total energy use by source of energy
in percent

2021

2022

2023

Change to2022 inpercent

Renewable energy
sources

23.1

29.2

30.6

1.4

Fossil energy
sources

76.9

70.8

69.4

-1.4

21

Our responsibility
Environment

Our responsibility
Environment

Environment

Environment
Emissions
B. Braun reports its emissions based on the greenhouse gas protocol of the World Business Council for
Sustainable Development (WBCSD). We have beenreporting our own CO₂eq emissions (Scope 1) since2021. These include emissions from the company’s
own electricity generation and its own vehicle fleet.
We have been reporting CO₂eq emissions from purchased energy (Scope 2) since 2018. In addition toemissions from electricity consumption, we also record emissions from thermal energy used at theB. Braun reporting locations.
We were able to reduce CO₂eq emissions in the reporting year by another 7.2 percent compared to theprevious year, bringing us closer to the goal of cutting
our Scope 1 and 2 CO₂eq emissions by 50 percent by
the year 2030 compared to 2021. Using a more precise measurement and including country-specificconversion factors has led to a 13.1-percent reduction
in absolute CO₂eq emissions since the 2021 reportingyear. By increasing their percentages of renewableenergy and number of targeted energy conservation
projects, many locations have significantly reduced
their CO₂eq output.
We have been determining the energy supplied to us
by our utility companies since 2023. Soon, we will
begin regularly evaluating it by comparing emissions
according to the energy market at different locations.
In places that use a high proportion of fossil fuels, weare looking for ways to further increase renewableenergy use. We are supplying more of our production
facilities with renewable energy, including geothermalenergy, wind and solar energy, hydroelectric, or energy from biomass power plants.
We installed photovoltaic systems at another five locations in Europe and Asia during the reporting year.
These systems add to our current photovoltaic installations, where we generate a total of about 45 gigawatt hours. Other systems are currently underconstruction at locations such as Penang (Malaysia),
Nowy Tomyśl (Poland), and at our headquarters in
Melsungen (Germany). Penang will soon have one of22

the largest installed outputs, at about 6,400-kilowatt
peak in an area of approximately 31,000 square meters.

Transport types and their CO₂eq emissions
in percent

Route share

Our production site in Bad Arolsen (Germany) is currently implementing a transformation concept withthe goal of reducing emissions. The planned procedures included in this concept include reducing airchanges per hour in the production area and minimizing compressed air leakage, and these changes areprojected to save around 455 megawatt hours per
year.

Air
2.7

Sea
54.0

Air
23.8

Land
43.4

Water management

CO₂eq emissions
in metric kilotons

CO₂eq emissions(Scope 1&2)

CO₂eq emission share

2021

2022

2023

Change to2022 inpercent

653.4

612.3

568.0

-7.2

Logistics
Even in our distribution logistics, we routinely examine our processes with the goal of reducing their environmental impact. This includes examining how
many deliveries can be made using low-carbon modesof transport, with an emphasis on reducing air freightand shifting to rail transportation. When choosing ourfreight forwarders, we look for those that meet ESG
standards and have been independently audited.
At our headquarters in Melsungen, we will soon put
an electric truck for local and yard transport into service, following a successful test phase. On the Malaysia–USA route, we introduced a new, efficient shipping
container loading and unloading method which does
not use pallets during loading in order to achieve optimal cube utilization and storage area use. Thismeans we need 115 fewer shipping containers per
year on this route, which comes out to around 60
metric tons of CO₂ saved. We are already deploying
this method on shorter routes in Asia, which has allowed us to save roughly 35,000 wooden pallets lastyear. This loading and unloading method will soon be
put into practice on additional routes.

Water is one of the most important resources for manufacturing our products and operating our renal carecenters. We obtain 90.5 percent of our water frompublic and private utility companies. The rest comesfrom our own wells and surface water or is recycled
and reused through internal processes.
We regularly analyze whether B. Braun locations are
situated in water risk areas as defined by the World
Resources Institute. At these locations, we intensify
measures to use water efficiently. This includes making any generated wastewater reusable.
Our water withdrawal decreased by four percent in
the reporting year — around 90 percent of the waterrequired is used at locations where we manufacture
products containing a high volume of water, such as
IV solutions, dialysis concentrates and disinfectants.
Due to fluctuations in production volume, water withdrawal varies in our core reporting countries fromyear to year. For example, water evaporates during thecooling of production plants, and waste is produced
in a liquid state, when we dispose of it. Around 13
percent of our water consumption is tied up in our
products; 14 percent is used in cooling processes andevaporates. The remaining 73 percent ends up in
wastewater systems or is disposed of as liquid waste.
At our production site in Bhiwadi (India), we added awater recovery system to the facility’s wastewater
treatment system in the reporting year. This expansion will recover around 200,000 liters of processwater, most of which would have been discharged

Land
70.3

Sea
5.9

into the sewage system. We use extracted groundwater to manufacture our products most of the time. The
recovered water is reused for internal processes toconserve groundwater resources.
Water use
2021

2022

2023

Change to2022 inpercent

Water withdrawal(in thousands of cubic
meters)6,851.0

6,760.9

6,489.3-4.0

Wastewater discharge(in percent)

75.3

72.6

72.7

0.1

Water consumption(in percent)

24.7

27.4

27.3

-0.1

Resource use and the circular economy
Purchasing volume
We take care to minimize the amount of raw materials
we use by handling them efficiently and responsibly.
The primary raw materials for the manufacture of our
products are water, plastic granulate, minerals, nutrients, and metals. Generally, the amount of primary
raw materials we use is closely related to production
volume and is subject to annual fluctuations. We purchased less metal in the reporting year compared toprevious years as a result of planned safety stock reductions and the shutdown of scalpel blade production in Malaysia. Consumption of minerals andnutrients normalized in the reporting year following adrop in demand. Plastic granulate was purchased inabout the same volume as in the previous year.

23

Our responsibility
Environment

Our responsibility
Environment

Environment

Environment

Purchasing volume of raw material
in metric kilotons

Plastic granulates(PS, SB, ABS, PE, PP,
PVC)

2021

2022

2023

Change to2022 inpercent

71.2

69.3

69.1

-0.3

Minerals and nutrients(salts, amino acids,
proteins, carbohydrate compounds)

56.3

62.2

60.2

-3.2

Metals (ferrous,
non-ferrous)

5.1

4.3

3.5

-18.6

We spend a large part of our purchasing volume in the
countries in which we operate. The national purchasing volume in the Group was 79 percent in 2023. Thisvaried in individual countries between 37 percent and100 percent depending on the size, location, and raw
materials situation of each country. With this purchasing policy, we shorten transportation routes, saveon costs, conserve the environment and boost regional economic power.
We also take steps to preserve the environment whenit comes to packaging our products. First, we use as
much of the packaging volume as possible in order tokeep excess packaging as low as we can. Second, we
use environmentally friendly materials wherever possible. We successfully developed a new sustainable
packaging guideline in the reporting year to help project teams develop more sustainable packaging components and systems.
Purchasing volume of packaging materials

Paper (in millionsof linear meters)

2021

2022

2023

Change to2022 inpercent

85.7

83.8

79.1

-5.6

Corrugatedcardboard boxes(in millions ofunits)

149.7

155.3

142.1

-8.5

Plastic film
(in millions oflinear meters)

182.2

197.0

191.4

-2.9

24

In every European country, licensed service providers
take back B. Braun packaging and recycle or disposeof it. Generally, the amount of packaging material weuse is also closely related to production volume and issubject to annual fluctuations. Due to stock reductions, we purchased less product packaging material
overall in the reporting year.
Sustainable products and services
When developing sustainable products and services,
we incorporate new technologies and observe uniform standards. This is why we developed our packaging guideline, as well as our life cycle assessment(LCA) guideline in the reporting year, we will roll bothguidelines out globally following a piloting phase.
Product LCA s provide information on where the best
opportunities for optimization are, pointing the way
toward the use of new technologies. Our focus here ison products used in large quantities. We strive forsustainability in our products along their entire life
cycle from the procurement and manufacture to theuse, recovery, and processing, to the recycling andreuse of materials.
The AESCULAP Aicon® sterile container is a reusable
sterile container system for transporting sterilized
surgical instruments to the operating room and safely transporting contaminated instruments back to thesterile processing department after the surgical procedure. This packaging system helps make operating
room and sterile processing department processes
safe and sustainable. Compared to single-use packaging, the Aesculap sterile container system generates
95 percent less plastic waste. This allows hospitals tosignificantly reduce their single-use packaging waste
stream, and in a medium-sized facility, for example,
to save over 3.1 metric tons of waste every year.
Other examples include the use of environmentallyfriendly packaging for our single-use products as wellas the recycling of plastic waste through regranulation. At our locations in Brazil, Germany, India, Kenya,
Malaysia and Spain, we regranulate the polyethylene
waste generated by the production of the Ecoflac® IV
container into a raw material that can be reused. Regranulate and new granulate can be mixed at a max-

imum ratio of 30:70 without reducing the quality of
the final product, making it possible for our production sites to save over 29 metric tons of granulate
every work day in 2023.

struments. Our specialists inspect and repair the used
instruments and then add them to the instrument
pool. This concept kept over 80,000 surgical instruments in the sterile supply cycle in Germany in 2023.

At our location in Tuttlingen (Germany), we operate arecycling and disposal station for metal shavings left
over from the manufacturing process. We recycle theshavings and recover (precious) metals in order to integrate them into a sustainable circular economy.
Water-based cooling lubricant solutions and effluent
from cleaning processes are purified in an internal
treatment plant, which reduces the Tuttlingen location’s emissions by 489 metric tons of CO₂ equivalent
per year compared to primary material production.

Innovation for greater sustainability
Since 2017, our Accelerator program has promoted
collaboration with startups in order to drive innovation and accelerate implementation. The program focused on sustainability in 2022 and 2023. Together
with partners and young companies, we generated
novel ideas and innovative approaches while adapting
existing solutions to help B. Braun meet its sustainability goals. Specifically, we worked on improving energy efficiency in manufacturing, reducing packaging
and product waste, and making the work environment
more sustainable. We also added sustainability as acategory in the B. Braun Group’s internal ideas competition, the B. Braun Innovation Award, and havealready given out three awards to employees for sustainable product ideas.

Sustainability aspects can also influence product design. After use, our Introcan Safety® 2 intravenous
catheter joins a specific medical waste category andmust be collected in special containers for disposal.
Thanks to its design, the Introcan Safety® 2 weighs
up to three-quarters less than conventional intravenous catheters, which reduces waste. When it comesto disposal, this means the sharps container can be
filled as efficiently as possible and, as a result, fewerof these containers are used.
The newly developed Sol-Can® A, a hemodialysis concentrate container, contributes to greater sustainability in dialysis treatment thanks to improved production
processes, which reduce its carbon footprint by 17
percent compared to our conventional container whencalculated according to ISO 14067. By switching to
PET, the product is completely recyclable, reducing
the risk of plastic being released into the environment. Sol-Can® A is also 56 grams lighter than its
predecessor, which means an average renal carecenter treating 100 patients can save over 800 kilograms of plastic waste in a year.
B. Braun’s Technical Service also makes an important
contribution to sustainability in health care throughpreventive and corrective measures that ensure medical devices continue to function in hospitals worldwide. One example is the RapidSet Refit service
concept for surgical instruments, where Technical
Service replaces existing inventory with repaired in-

Waste
We consider waste to be valuable materials that we
separate, recycle as often as possible, and return tothe value creation cycle. The total volume of waste
generated in the reporting year fell by around 1.6 percent compared to 2022. On average, 61.7 percent ofwaste is recycled, meaning that separately collectedmaterials are reused according to their material properties. Adding waste that is incinerated in order to use
its energy to generate heat and electricity results in a
recycling rate to 88.4 percent in 2023. The slight decrease compared to the previous year can be explained by fluctuating rinse water volumes.
Our total volume of waste depends largely on how
much liquid waste results from batch changes or rejected finished solutions at our production sites for IV
solutions, disinfectants, and dialysis concentrates.
Smaller batches resulting in frequent product variantchangeovers on the production lines generate more
liquid waste compared to total production quantity—that waste must be treated before it is returned to thewater cycle. We collect the plastic waste generated
during production separately and send it off for25

Our responsibility
Environment | Social responsibility

Our responsibility
Social responsibility

Environment | Social responsibility
high-quality recycling. Plastic waste containing manydifferent types of plastic cannot be recycled together,so it is sent off for thermal recycling.
Our waste management distinguishes between hazardous and non-hazardous waste. The amount of hazardous waste we produced in the reporting year was
15.3 percent, with nonhazardous waste accounting
for 84.7 percent of total waste. Around 70 percent of
hazardous waste is generated by cleaning and rinsing
processes at our production sites for disinfectants
and water-intensive products. The percentage of total
generated waste that is hazardous fell 1.7 percent in
2023. Waste that is not suitable for either material orthermal recycling — just 11.6 percent of total waste— is disposed of by specialized disposal companies.
Proportion of the accumulated waste
2021

2022

2023

Change to2022 inpercent

Hazardous waste(in metric kilotons)

8.2

10.0

8,.8

-11.5

Non-hazardous waste (in metric kilotons)

52.1

48.6

49.0

0.5

Total waste(in metric kilotons)

60.3

58.6

57.7

-1.6

Reuse ratio(in percent)

91.9

91.1

88.4

-2.7

Recycling ratio(in percent)

65.7

67.9

61.7

-6.2

Social responsibility
Management approach
Our employees are the driving force behind B. Braun’scorporate success. Their expertise, passion and capabilities are our greatest strengths. To continue to foster this, we promote a culture characterized by trust,accountability, and diversity. We are shaping the future with openness, flexibility and the courage tochange in order to continue to remain successful in ademanding and highly dynamic environment.
The joint commitment of all employees to the values
and goals of B. Braun is essential to our corporate
success. In our strategic transformation into a leading
medical technology company, we promote a high-level culture of leadership and cooperation based on ourcompetence model. We are constantly developing ourleadership culture to create change for greater progress, and we value a variety of perspectives, whichis also why we continue to increase the proportion of
women in leadership positions.
All employees should be able to work in a safe andhealthy environment. This is why we continue to focus
on strengthening our culture of health and safety.
Another core element of our social responsibility isprotecting human rights. To back up this commitment,
the B. Braun Group has introduced a corporate declaration of respect for human rights.
To us, social responsibility also means ensuring thehighest possible patient and user safety for our products and services, which we accomplish using extensive quality management in addition to integrated andcomprehensive risk management throughout the
product cycle. Beyond our core business, as a familyowned company we are committed to society worldwide and in the long term. We base our choice ofdonations and sponsorship projects on our strategic
focus areas of health, education, and diversity, and we
get engaged in the regions in which we operate.

26

Social responsibility

Modern and respectful corporate culture
Cultural change
Three years ago, we established our strategic framework for becoming a leading medical technology
company by 2030, we called it “B. Braun - the next
decade”. We want to continue to grow toward thisgoal and utilize the many different perspectives, experiences, and backgrounds of our employees from allover the world. To do so, we promote interdepartmental and international cooperation, and have created acompetence model that is binding for all employees.
This model is a guide to how our values of trust, accountability and diversity can promote cultural transformation in the recruitment, leadership, development,
and evaluation of our employees.
Balancing work and family
As a family-owned company, it is particularly important for us to support our employees balance family
and work. B. Braun offers individualized working models for families in many country organizations. In thereporting year, 1,614 employees in ten countries wenton part-time family leave. The percentage of men tak-ing part-time family leave has continued to increase
in recent years. In 2023, a total of 2,859 employees
took parental leave.
Supplementary retirement pension
It is essential that our employees and their families
are well provided for even after they retire. This is
why we support employees beyond the statutory pension amounts. As of December 31, 2023, the B. Braun
Group has established provisions for pensions andsimilar obligations in the amount of about € 1.2 billion. More than half of our employees in the reporting
countries are covered by a supplementary retirement
pension.
Employee co-determination
B. Braun is committed to social partnership as an active supporter of labor laws and developer of guidelines. Cooperation between corporate management
and employee representatives is characterized by along tradition of mutual trust. B. Braun secures theright of employees to freedom of association and coalition and collective bargaining, and their right to conclude joint agreements to shape our working conditions.

Our drivers for cultural transformation until 2026

Leaders
accelerate
our culturaltransformation
Collaboration
acrossthe organization
enhances customer
focus

Executeprofessional
employeedevelopment

Trust
Accountability
Diversity

Encourage
mobility
and flexibility for
personal growthDifferent
perspectives achieve
better results

A culture to
perform
Feedback drives
performance
Utilize the powerof technology
to accelerateinnovation

27

Our responsibility
Social responsibility

Our responsibility
Social responsibility

Social responsibility

Social responsibility

Protecting long-term employment is also part of ourunderstanding of sustainability as a family-owned
company. This means that 88 percent of our European
employees and over 42 percent of all employees in ourreporting countries worldwide are part of collective
bargaining agreements.
Digitalization
We also aim to modernize our HR management processes. One important milestone for us in this endeavor is to digitally transform HR with standardize processes and clearly defined roles. We have achieved
important milestones on the path to the digital transformation of HR management with the deployment ofa cloud-based HR software program and the continued growth of our standardized HR administrationand personal development. Extended self-service programs give employees greater flexibility and transparency when it comes to their stored personal data andallow them to access and update much of their own
human resources data in the system themselves.
To facilitate the application process and new employee orientation in the future, we are currently preparing to launch these applications in the countries withthe most employees. Since the reporting year, all employees worldwide have had access to learning content through an online learning portal, where country-specific content and requirements are being added. This ensures that the completion of legally relevant learning content and standardized processes is
automatically assigned to and verified for defined target audiences.
Diversity, equal opportunity, and inclusion
It is our culture of trust, accountability and diversitythat makes B. Braun a true partner for our employees
and customers. By strengthening an appreciative, inclusive and equitable work environment, we unleash thefull potential of every single one of our employees. They
drive advancements in health care with their different
perspectives, experiences, and backgrounds. As a symbol of this belief, B. Braun signed the Charta der Vielfalt,
a diversity charter signed by 5,000 other companies inGermany. We are aware of the advantages of a mixedage workforce that contributes different professional
experiences and expertise across generations.

In our corporate declaration of respect for human rights,
we state that we give everyone at our company thesame career and growth opportunities. The proportionof female employees at B. Braun was 52 percent in
2023. Of the five members of the Executive Board, twowere women in 2023, and five of the 16 members of theSupervisory Board were women. This allowed us to meet
the targets we set in 2017 of not falling below a proportion of 28 percent for women on the Executive Boardand of increasing the proportion of women members on
the Supervisory Board to 30 percent or having at least
two women Supervisory Board members each on theemployer and employee side. The proportion of womenserving on these boards in 2023 is 40 percent and 31
percent, respectively.
We are consistently working towards our goal of continuing to increase the proportion of women in leadership
positions in the company. By 2026, we aim to have
17 percent of positions in the first and second management levels below the Executive Board held by women.
Currently, it is over 14 percent1 . We started the women’s
mentoring program in 2021, female employees from different departments participated, and we continued it fora second round in the reporting year. In addition to personal development, this mentoring program especiallyhelped the women further strengthen their management
skills.
Proportion of women
2023, in percent

Executive Board
Supervisory Board
First and second
management level1

31
14B. Braun Group52

We rely on the skills and expertise of our employees,
including those with physical and/or intellectual disabilities and/or psychological impairments. In order to makeinclusion successful, we are committed to an accessible
and open-minded work environment. This includes work
areas and workplaces that are accessible to people withdisabilities. The proportion of employees with disabilities
in the reporting countries totaled around three percent
in 2023—around seven percent in Germany and six percent in France.
1

28

40

including B. Braun Service SE & Co. KG.

Since 2018, our 4Diversity network has raised global
awareness of diversity, equal opportunity, and inclusion (DE&I) at B. Braun. The network consists of
B. Braun employees from all departments and hierarchy levels, and is committed to fostering a respectful,inclusive, and equitable work environment throughthe different perspectives of volunteers and 4Diversity ambassadors. Every year, the network organizes aweek of events, presentations, workshops, and discussions on various DE&I topics.
Learning and continuous development
B. Braun offers a wide range of training and development options for individual career paths. Being successful in a dynamic environment means our employees need to adopt new ways of learning. We provide learning content for successful continuous development and strengthen our learning culture with acustomized and motivating learning ecosystem forour employees. This includes learning units that specifically focus on cultural change within the company
as well as apps that expand employees’ knowledge.
B. Braun employees spent an average of three days on
professional development in the reporting year. Mostof our training and development programs are provided as part of the B. Braun Business School and offer
something for every employee group. Over 38,000
employees attended 1,548 courses in 2023.
With the B. Braun Talent & Succession Program, weseek to identify the individual competencies of ouremployees early on, develop those skills and thenmake good use of them later on in key positions. We
routinely identify critical positions and specific target
profiles, identify employee potential in our talent reviews and then develop career paths for these talented individuals. To ensure employee development, we
will soon place greater focus on performance management, which is designed to allow employees totake ownership of their personal and professional development, actively supported by their managers using regular feedback and coaching. These processes
were mapped to a digital platform in 38 countries in
the reporting year, and that is yet another step towards our digital transformation, facilitating efficient
implementation at all B. Braun locations worldwide.
This process will launch in other B. Braun countries in
2024.

Since 2012, B. Braun has been part of the AFRIKA
KOMMT! initiative, a development program for African
managers. We also use networks such as this to hire
talent for key positions in new markets so we can set
ourselves up with employees in the future.
The qualification of junior employees is a key component of our HR strategy. B. Braun offers these employees vocational training followed, in many cases, bydirect employment. Here, too, we are specificallystrengthening digital skills in both new and well-established apprenticeships. In 2023, a total of 1,076 young
people were enrolled in vocational training.
Occupational safety and healthOccupational safety
As a company in the health care sector, we are responsible for health care workers, patients, and our own
employees. We take a preventive approach in order tokeep work-related injuries and illnesses to a minimum.
Occupational safety is achieved by example andthrough employees’ willingness to be accountable in all
departments in the company. The number of lost-time
accidents in the reporting year dropped by 7.5 percent;
we attribute this to various activities designed to raise
employee awareness. This is how we continue to reachtowards our goal of reducing the total number of accidents every year. We analyze every accident to determine the underlying cause and derive corrective andpreventive measures. We communicate the circumstances and cause of the accident to all locations toprevent similar accidents elsewhere in the company.
In the reporting year, 70 percent of all work-related
injuries at B. Braun were attributed to human error.
We respond to this with safety training as well as
meetings with those involved to review the accident.
All other work-related injuries have either technicalcauses (16 percent) or organizational causes (14 percent). Here, too, we derive appropriate preventive
measures by reviewing the accident. In the reporting
year, we came to an agreement with our locations on
standardized occupational safety indicators. Thisguarantees a uniform understanding of the definitionof a work-related injury and allows us to compare andevaluate locations more objectively. One of these indicators is the lost time injury rate (LTIR), which is thenumber of work-related injuries with at least one losttime case per million hours worked.

29

Our responsibility
Social responsibility

Our responsibility
Social responsibility

Sozialeresponsibility
SocialVerantwortung

Sozialeresponsibility
SocialVerantwortung

All employees receive regular training in occupational safety, first aid and what to do in case of a fire,based on their positions in the company. Occupational safety experts at the production sites meet withthe employees in each job to conduct assessments ofall potential risks. In particular, the technical departments of our company are subject to a variety of legislative and regulatory requirements. B. Braun relieson the globally recognized ISO 45001 standard inorder to harmonize and continue to develop its occupational health and safety processes and standards.
In the reporting year, we successfully rolled out our
global occupational safety management standard at
our production sites. The managers at these sites are
responsible for implementing this standard, and morethan 67 percent of the facilities in our reporting
countries have already done so and are now ISO-certified. Our production site in Bhiwadi (India) was certified for the first time under ISO 45001 in thereporting year.
We have also defined clear occupational safety regulations for employees from external service providers,
and they are included in our contracts with them. Coordinators conduct safety briefings with outside employees prior to the start of work and supervise themto avoid any potential hazardous situations. We havestrengthened our preventive approach to occupational safety with a program to report all near misses or
unsafe acts. This allows a manager to intervene before a work-related injury occurs.
We also conduct awareness campaigns every year atour production sites in Asia to improve occupationalsafety. A total of nine sites in seven countries participated in 2023. One of the main topics was how to avoid
trip and fall accidents, which account for an appreciable percentage of work-related injuries. Awarenessraising among managers and employees also reduced
work-related injuries at other production sites, such as
Berlin-Mistelweg (Germany), Nogent (France), NowyTomyśl (Poland) and Penang (Malaysia), by at least
20 percent compared to the previous year.
Occupational accidents

Number of occupational accidents

30

2021

2022

2023

Change to2022 inpercent

598

440

407

-7.5

Occupational healthProtecting the health of our employees is critical. This
is why our corporate health management does notjust focus on physical health, but on mental health, aswell. We focus on a broad range of preventive
measures with a holistic approach that ranges frompreventive medicine and physical fitness to mental
health and nutrition tips. In countries with less effective health care systems, we offer our employees
medical screenings, nutritional advice and dental examinations.
In the case of an illness or accident, it is importantthat the affected employee not only receive medicalcare but also the best possible financial protection. In
many reporting countries, we take out accident or
disability insurance for employees to cover the financial consequences of an accident at work or during
their commute. In some countries, we offer our employees life insurance and income protection insurance or cover part of an employee’s health insurance
costs. If an employee experiences a prolonged illness,the company supports them after recovery by reintegrating them into everyday work life.
Human rights
As a family-owned company, we acknowledge our responsibility to protect and promote human rights aswell as our obligation to society to preserve the environment.
Our commitment to respecting human rights is basedon the United Nations’ Universal Declaration of Human Rights as well as the International Labor Organization’s (ILO) Declaration on Fundamental Principles
and Rights at Work. We also base our commitment on
the UN’s Guiding Principles on Business and Human
Rights. We are committed to respecting internationally recognized human rights in our business activities
and throughout our value chain, particularly prohibiting child and forced labor, prohibiting slavery anddiscrimination in all its forms, and strengthening freedom of association.
We also are committed to providing a safe work environment, paying adequate wages, and prohibiting
pollution, forced eviction and the deployment of security forces where such deployment poses the danger of becoming a human rights abuse or restriction.

Our Code of Conduct illustrates our general commitment to respecting human rights and protecting theenvironment. To back up this expectation, B. Braunrenewed its B. Braun Code of Conduct effective October 1, 2022 and began issuing a corporate declarationof respect for human rights that includes all our business units as well as our global supply chains. Thisdeclaration covers the major areas of human rights
risks for workers in global supply chains. Experts from
B. Braun are leading cross-sector dialogs on current
human rights topics in organizations such as the
MedTech Europe trade association.
Product quality and safety
B. Braun operates an extensive and networked quality
management system certified by accredited bodies
and authorities. These systems meet international requirements, regulations and laws for medical devices
and medicinal products while also meeting applicableproduct, process, and risk management standards.
Other requirements regarding environmental protection and occupational safety have also been combined
into an integrated management system. This allows us
to meet ISO 13485 criteria at all our reporting locations that manufacture medical devices. This standard
describes the requirements for a comprehensive quality management system for design, manufacture,storage, and distribution of medical devices with thegoal of ensuring product safety and effectiveness.
In addition to ISO 13485, we also meet various requirements and regulations in our target markets,
such as in Australia, Brazil, Canada, China, Japan, andthe USA . These legal standards include the EU’s Medical Devices Directive (MDR). With the implementation of the EU’s Falsified Medicines Directive, we cantransmit the serial numbers of all the medicines produced on a total of 30 production lines in Europe andNorth America to a central EU database in compliancewith track and trace requirements to fight counterfeiting.
The requirements of the revised Annex 1 to the EU’s
good manufacturing practice (GMP) guidelines for
medicinal products for human and veterinary use
were also implemented. The application of a better
understanding of processes through the use of innovative tools, such as that described in ICH guidelines

Q9 (Quality Risk Management) and Q10 (Pharmaceutical Quality System), will play a significant role here.
Special attention is paid to controls throughout theentire life cycle in order to avoid possible contamination of medicinal products.
We identify the potential risks of medical devices oreven medical services early on during the product life
cycle — from the initial idea to product application by
patients at home, or in the hospital setting. Our goal
is to ensure the greatest possible safety through comprehensive risk management. We are also constantly
improving the design of our products and packaging
based on user studies as a part of our safety concept.
Easily visible, harmonized color codes indicate the sizeof the product or the material that is used to manufacture it. Special labels with clear, differentiatingcolors and shapes make it easier to select the proper
dose of medications and make the packaging more
noticeable, which is particularly important when it
comes to critical substances.
B. Braun is actively working in the German Medical
Technology Association (BV Med), the European Medical Technology Association (MedTech Europe) and theAsia Pacific Medical Technology Association (APACMed) on new medical standards and rules.
Access to health care
One particular concern of ours is to make it easier for
people around the world to access health care. In recent years, we have continually expanded our commitment with our partners to improving infrastructure and health care, such as long-term support for building and upgrading of health caresystems in developing countries, especially on the
African continent.
As part of the develoPPP program, an initiative ofGermany’s Federal Ministry for Economic Cooperation
and Development (BMZ), we combine various activities in Africa in order to build infrastructure andhealth care, including cooperating with the German
Association for International Cooperation (GIZ) andother partners in industry and science to establish adegree program in applied biomedical technology in
Kenya, Senegal, and Ghana as well as to qualify medical staff in dialysis treatment.

31

Our responsibility
Social responsibility

Our responsibility
Social responsibility | GovernanceSocial responsibility

Social responsibility | GovernanceWe came one step closer toward the strategic goal ofour development partnerships in Africa in the reporting
year by teaming up with the GIZ and other partners inindustry to expand the biomedical technology education initiative of the BMZ’s develoPPP program to
Ghana in April 2023. There, the corresponding bachelor programs at two public universities are being revised and more practical, market-oriented educational
content will be offered. This also includes setting up
training labs and supplying them with the necessary
medical equipment. The labs can also be used by healthcare professionals as a training center for continuous
professional development. This is how qualified medical
professionals can be trained, which is a major contribution to improving health care in Ghana.
With the help of the German Investment Corporation
and as part of the BMZ’s develoPPP program, B. Braunis also training medical and technical professionals in
Cameroon and other African countries in order to expand local dialysis clinic capacity to protect and improve the health of people with kidney disease. With
these approaches, we are improving the quality of
local health care and the quality of life of the patients
while also supporting stable employment for people
working in the local economy.
A person’s ancestry, ethnicity, socioeconomic status,or other differences should have no impact on theirability to get access to the individual and specifictreatment they need. This is why we develop innovative programs and technologies for improving healthoutcomes and work with leading health organizations
such as the Association for Vascular Access (AVA) topromote better care standards for all patients.
Donations and sponsorships
As a family-owned company, B. Braun is a long-standing advocate for social issues beyond the scope of its
core business. In the reporting year, we revised ourdonation and sponsorship strategy and identified thestrategic focus areas of health, education, and diversity, which we aim to increase our commitment to on
behalf of society in the future. This includes supporting projects that have a local impact in the regions
where we operate. Additionally, our support only goesto registered charitable organizations and groups
whose projects affect at least 25 people.

32

In 2023, we sponsored over 170 projects in our focus
areas of health, education, and diversity at our locations in 32 countries around the world, supporting
approximately 66,000 people. These were selected at
the discretion of the respective country organizations
because they know the local situation best and canmanage projects there in a more concerted way.

Our education initiatives are also focusing on Asia: in
Penang, Malaysia, B. Braun is a sponsor of the Penang
International Science Fair, an event geared towardgetting mostly young people excited about naturalscience, technology, and mathematics. The emphasis
in 2023 was on teaching about CO₂ footprints andways to reduce our own.

HealthAs a leading medical technology company, we arecommitted to projects focused on health care. In particular, we concentrate on exercise, nutrition, andmedical care in structurally weak regions.

Diversity
At B. Braun, diversity is deeply rooted in the company’s values. We foster different perspectives, thoughts,
experiences and backgrounds, which is why we areespecially committed to social, cultural and ethnic
diversity.

B. Braun employees at our biggest locations in Germany can volunteer to donate the leftover cent amountsof their monthly salary to social projects. In the reporting year, the funds from this program helped anaid organization provide humanitarian aid to Turkey
and Syria after the major earthquake that struck
there. Additional aid also went to the region in theform of medical products with a value of approximately € 500,000.
The B. Braun Foundation has been dedicated to promoting education, science, and research, as well as
public health, in human medicine for almost 60 years.
It was founded by the entrepreneurs Otto and
Dr. Bernd Braun in 1966. Through its own programs,
it sponsors people in the health care industry, whichmakes a contribution to improving health. The
B. Braun Foundation is a modern medical foundationthat has awarded over 16,000 grants totaling roughly€ 20 million.
Education
We believe that education is the key to people being
able to determine the course of their own lives. This
is why we advocate equal opportunity and focus our
support on projects that promote education in naturalsciences, technology, and digital literacy.
Through our efforts, a total of 830 students aged 4 to18 were able to get an exciting look at the diverse fields
of application for technology and the natural sciences
during Youth Week at our headquarter in Melsungen,Germany. Attendees were exposed to a multifacetedrange of possible applications in new career fields,
above all those made possible by the use of AI.

One way we show our commitment is by supportingthe “Offen für Vielfalt - Geschlossen gegen Ausgrenzung” (Open to Diversity - Together against Exclusion
coalition), which is active in the area of our corporate
headquarters in Melsungen (Germany) in promoting
diversity in all its forms and fighting any and all marginalization of people in society and the workplace.
At our location in Brazil, we are setting an example
for social diversity by teaming up with the association
Senai São Gonçalo to help young people from disadvantaged backgrounds find a career path. This partnership has given five young women the opportunity
to complete an apprenticeship at B. Braun—theseyoung women recently won an award at an international competition for using design skills and AI to
make science more easily accessible to children andyoung people.
We will continue to support development partnerships
and social projects in our focus areas of health, education, and diversity, which we see as the greatest
value added by our social progress activities. They
also bring us one step closer to our goal as a company: protecting and improving the health of people
around the world.

GovernanceManagement approach
Responsible corporate governance is the foundationof our corporate culture. The legal and ethical conduct of our employees is an integral part of our value
system. For the B. Braun Group, compliance does notmean just conforming with legal standards, it also
includes ethical values such as integrity, fairness, andsustainability, which we embody both internally andexternally with full transparency. Our Code of Conduct establishes a binding framework for our activities around the world and stipulates our expectations
regarding ethical conduct among our employees. Even
when selecting and qualifying our business partners
and suppliers, we ensure that they meet the required
quality standards and standards for sustainability, areopen to innovation, and can guarantee a reliable supply. To this end, we are continuously expanding ourcurrent supplier management approaches and haverooted them in our strategy. As of December 31, 2023,
we have been able to rate around 80 percent of ouryearly procurement volume through independent providers in terms of sustainability.
Our supply chain is characterized by a very high levelof internal value creation. We generate over 90 percent
of our sales from goods and services from B. Braun’s
own production and distribution centers. Wherever
possible, we source raw materials and goods for a location from their surrounding region in order to process
or distribute them immediately on site. Our goal is tobolster the economic areas where we do business.
Compliance and Code of Conduct
Strong corporate governance combined with a cultureof accountability has the potential to increase thevalue of our company and promote sustainable growthby responding to risks and reacting to business opportunities.
With our worldwide compliance management system,
we ensure that our employees conduct themselves according to uniform, ethical standards. Our complianceofficers in the national organizations report directly totheir respective management and work together with33

Our responsibility
GovernanceOur responsibility
Governance

Governance

Governancethe Group Compliance Office on the further development of the system. Their network stretches acrossevery continent and currently comprises 69 specialists. All B. Braun employees are expected to adhere
to our rules. We convey these contents in classroom
training and e-learning as well as through coaching.
Our compliance officers also regularly train and advise our employees on special topics.
We also expect our supply chain partners to respecthuman rights and enforce them in their own businessactivities. To back up this commitment, the B. Braun
Group has begun issuing a corporate declaration ofrespect for human rights that includes all our business
units as well as our global supply chains. It covers themost important human rights risks for workers in global supply chains. The declaration was formulated byan interdepartmental team at the B. Braun Group andis modeled closely on international human rights
standards and principles.
The 2023 financial year saw a substantial increase inregulatory requirements. With the ongoing deployment of technology, adapting our strategies and steadily promoting a strong culture of compliance, we cancontinue to meet these new regulations and ensure
long-term, sustainable growth in a constantly evolving environment.
Responsible supply chain
In the reporting year, we developed a framework forcompliance with minimum standards in our supply
chains that establishes our expectations from suppliers and the consequences of noncompliance. With
this, we comply with the German law on corporate
due diligence in supply chains that took effect in 2023
and requires B. Braun to transparently implement due
diligence in the supply chain with regard to humanrights and the environment.
Our ESG standard for suppliers is an essential part ofour supplier contracts and requires suppliers to meetthe standards set forth in that standard. This also makes it clear to our suppliers that we only want to buy
products and services from responsible subcontractors.
These requirements are monitored through performance controls such as supplier evaluations and audits.

34

Integrated software solutions for supplier qualification and monitoring help us gain more transparency
across our supply chains. We obtain relevant information on the sustainability efforts of our suppliers andtake specific actions when needed. We also conduct
annual reviews where we can address compliance with required standards with them and strengthen our dialog. This allows us to purposefully help
them continue to refine their sustainability efforts.
Our dialog with our suppliers is based on internal
training that raises the awareness of employees involved in purchasing with regard to sustainable procurement.
B. Braun‘s goal is to use our comprehensive risk management system to help identify, document, evaluate and minimize actual and potential risks that may
arise in our own business operations and in global
supply chains early on. As a result, we implemented a
supplier risk management process valid across our entire purchasing volume through the end of 2024. Supplier risk is determined using real-time data from an
independent service provider, which allows us to continuously monitor and control risks in our own supply
chain.
We also compel our business partners to conserve
resources and reduce the impact of their activities on
the environment as much as possible. For example,
they must keep track of their CO₂eq emissions, use
modern powertrain technologies and maintain or introduce environmental management systems.

Data protection and information security
Data protection
Our data protection department establishes the
B. Braun data protection strategy, defines goals andestablishes standard processes. It is based on the EU‘s
General Data Protection Regulation, which governs
the processing of personal data for all of Europe. We
have implemented these legal requirements and internal standards at all European B. Braun locations. Outside Europe, each country‘s data protection requirements are observed.
B. Braun’s data protection experts ensure global compliance with legal requirements and internal standards.
They are supported by other data protection officers
and data protection coordinators. This department organizes regular employee training sessions, consults on
the drafting of contracts or marketing activities, andoperates a comprehensive data protection information
center. At regular events, the data protection department, data protection officers and data protection
coordinators meet to discuss current developments indata protection.
Information security
Information technology is an integral aspect of ourlives, as it is in the health care industry. In addition toopportunities, increasing networking also poses risks
for individuals, hospitals, and manufacturing companies. Lawmakers in Germany have responded to thesedevelopments with binding regulations, including, inparticular, the IT Security Act and the Federal Officefor Information Security Act, which require operatorsof critical infrastructure such as electricity and water
utilities as well as food producers to implement
appropriate security measures. Areas of B. Braun havealso been classified as critical and must regularly demonstrate appropriate safety procedures.
Confidence in the security of our systems and data as
well as their resilience against manipulative interference are crucial to us. This is why we have taken a seriesof steps to ensure both our own security interests andlegal requirements are assured. We have launched aGroup-wide information security management system(ISMS) based on the international standard ISO/IEC
27001, which we regularly audit and continuously improve. The ISMS identifies the protection requirements
of information and information-processing facilities,
systematically records the risks to which they are exposed, and takes the necessary steps to mitigate thoserisks. The system encompasses all relevant aspects of
information security, such as cybersecurity and employee training. In addition, we work with teams of experts to continuously optimize the protection of end
devices, IT security in production networks and 24/7
monitoring for cyberattacks.
An interdisciplinary unit coordinates Group-wide cybersecurity for our products, identifies possible cyberrisks and takes extensive measures to prevent data
loss or abuse in our products. B. Braun is involved invarious organizations to continue developing global
security standards for medical devices and health care IT solutions.

Thus, our Code of Conduct, corporate declaration ofrespect for human rights and ESG standards for suppliers form the basis of every partnership with
B. Braun and are a major component in selecting andevaluating subcontractors.
As part of the “Chemie³” initiative, we are engaging with partners Germany’s chemical industry tolink economic success with social justice and environmental compatibility. The initiative is supportedby the German Chemical Industry Association ( VCI),
the German Industrial Union for Mining, Chemicals
and Energy (IG BCE), and the German Federal Employer‘s Association for the Chemical Industry(BAVC).

35

B. Braun is one of the world’s leading medical
technology companies. As a true partner, we develop smart solutions and set standards to improve health care. We manufacture over 5,000
medical devices and pharmaceutical products.

Group management report
01 Five-year overview
02 About the B. Braun GroupWe improve processes at hospitals, in ambula-

03 Economic report

tory treatment and for home health care that04 Risk and opportunities reportincrease both quality and safety for medical

05 Outlook

professionals and patients. We are committed
to integrating new technologies at the customer’s site. We utilize the latest technology to enhance the benefits of our core medical products with other products, services and digitalsystems. Our integrated solutions aim to makemedical treatment more innovative, more efficient and more sustainable.

Group management reportFive-year overview

Group management report
About the B. Braun Group

About the B. Braun Group
Five-year overview

About the B. Braun Group2019€ million2020€ million

2021€ million

2022€ million

2023€ million

Business activity

Sales

7,471.3

7,426.3

7,859.8

8,499.8

8,755.0

Cost of goods sold

4,444.9

4,503.2

4,799.0

5,268.6

5,432.6

We divide our business into three divisions: HospitalCare, Aesculap and Avitum.

Functional expenses

2,551.1

2,428.1

2,599.2

2,901.8

2,887.6

2,186.6

2,058.2

2,182.4

2,360.5

2,403.0

364.5

369.8

416.9

541.2

484.6

Interim profit

475.4

495.0

461.5

329.4

434.8

Operating profit

434.8

461.2

450.5

234.2

296.7

Profit before taxes

309.0

416.1

408.6

178.7

206.0

Consolidated net income

197.3

301.5

300.1

142.2

125.2

EBIT

388.8

481.8

471.7

247.9

316.2

EBITDA

1,079.1

1,103.2

1,101.9

997.2

1,019.4

Selling, general and administrative expenses
Research and development expenses

AssetsIntangible assets (inclusive goodwill)
Property, plant, and equipment
Other financial investments
Inventories
Trade receivables

10,088.4

9,720.1

10,206.2*

10,566.6

854.5

831.8

831.5

729.1

10,372.6
667.3

5,244.1

5,150.0

5,451.3

5,520.6*

5,388.6

68.0

65.1

87.8

106.1

80.2

1,370.2

1,450.2

1,639.7

1,908.6

1,843.7

1,240.0

1,182.9

1,220.7

1,315.2

1,379.8

Equity3,720.6

3,641.0

4,158.4*

4,839.7

4,702.1

Liabilities

6,367.8

6,079.1

6,047.8

5,726.9

5,670.5

Pension obligations

1,580.0

1,728.2

1,645.5

1,052.8

1,223.3

Financial liabilities

3,034.2

2,687.0

2,542.4

2,543.6

2,406.1

527.0

450.3

520.1

642.2

584.9

Investments in property, plant, and equipment,
intangible assets and financial investments
inclusive business acquisitions

894.6

782.8

799.7

647.0

698.5

Depreciation and amortization of property,
plant, and equipment and intangible assets

599.2

712.6

630.2

749.3

703.2

Trade accounts payable

Personnel expenditures

2,828.9

2,855.4

2,972.1

3,201.4

3,266.1

Employees (annual average)

64,21064,217

65,832

65,99963,919

Employees (as of December 31)

64,58564,317

66,77865,05563,011*Adjustments due to application of Standard IAS 29 “Financial Reporting in Hyperinflationary Economies”

Hospital Care
Hospital Care uses integrated solutions to improvemedical care at the hospital and beyond. Our products
help give medical professionals more time to care forpatients.
A central element in the medication process is automated infusion systems. By linking our Spaceplus pumpsystem to hospital information systems, we make itpossible to exchange treatment data, reduce manual
documentation and improve other processes in thetherapeutic area. Safe vascular access products, infusions and nutritional solutions and pharmaceuticals,
as well as a portfolio for their preparation and administration complete our range. We have been a leader
in regional anesthesia with our innovative products
for peripheral nerve block for years.
Our ready-to-use pharmaceutical products and prepared parenteral nutrition in multi-chamber bags help
us make clinical processes safer and more efficient.
We offer products for the automated production ofcustomized patient medication and nutrition for seriously ill patients, together with software solutions.
User training in peripheral vascular access and anesthesia help optimize processes and treatment outcomes in the hospital setting.
Aesculap
Surgery and other interventional medical procedures
have advanced fundamentally—they now require lessrecovery time, meaning patients heal faster and can
get back to their lives sooner. With innovative medical
technology, Aesculap improves patient treatment in
the OR and the cardiac catheter laboratory: throughlifesaving vascular procedures, innovative joint replacement or complicated neurosurgery, just to namea few.
We possess a deep understanding of every surgical,
interventional and supply-related process in the OR,
catheter laboratory and central sterile services de-38

partment (CSSD). By integrating new technologies
into our core medical products, we can improve andautomate our customers’ processes, reduce risks andincrease precision during procedures.
Our wide range of practical processes for basic surgical and interventional processes help medical professionals provide the best possible care for the patient.
In addition, we empower OR professionals to treat
patients according to their individual needs using data-centric digital applications. We also offer digitalization solutions for sterile goods management thatare adapted to specialists and processes to achieveclinical excellence while lowering costs. With all these
integrated solutions, we are driving advancement in
the field of surgery and intervention.
AvitumAvitum develops therapy systems for the needs ofchronically ill patients. We use integrated solutions tomake treatments simple and efficient while also improving quality of life and making work easier for
medical professionals.
Nexadia, our integrated data management system,
makes it possible for them to process medical dialysis
treatment data for patients, machines and therapy
sessions. This data can also be used to develop treatment recommendations, improve technical services oreven warn nurses and doctors if a patient’s inflammation parameters are elevated. With these integrated
solutions, we are improving the quality of dialysis andrelieving the burden on medical personnel.
For patients with other chronic conditions—such as
chronic wounds, ostomies or urinary incontinence—
we are refining our portfolio with products that are
reliable and easy to use, even at home. Our focus on
infection prevention and control is based on concepts
that utilize advice and training to help reduce the riskof infection in all areas of medical treatment, wherever patient care takes place.
Sharing Expertise
The Aesculap Academy is our training forum. With themission statement, Connect. Exchange. Enable., weoffer scientific training as well as product-specifictraining and workshops in 43 countries, with e-learning playing an increasingly greater role in the transfer
of knowledge. In total, we hosted 222,000 medical
professionals in 2,500 courses in the reporting year.

39Group management report
About the B. Braun Group

Group management report
About the B. Braun GroupABOUT THE B. BRAUN GROUP
The values of innovation, efficiency and sustainability
are deeply rooted in our company. Our corporate culture is characterized by trust, accountability and diversity. As of December 31, 2023, we had 63,011
employees.

contracts and compensation. The Audit Committeemonitors the company’s systems of internal controls,
the integrated compliance management system, accounting processes and financial statement audits.

Corporate structure
Owner family

B. Braun Familienholding SE & Co. KG

Corporate values

B. Braun SE

Innovation

Efficiency

Sustainability

We driveadvancements.

We focus
our energy.

We live
responsibly.

Trust
We rely on eachother.

Accountability
We takeownership.

Diversity
We valuedifferences.

Our financial reporting includes our three divisions
along with six regions: Germany, Europe (without Germany), North America, Asia–Pacific, Latin America,and Africa & the Middle East. Major production sites
are located in Melsungen (headquarters), Bad Arolsen,
Berlin, Denzlingen, Dresden, Glandorf, Tuttlingen (allGermany); Rubí (Spain); Nogent (France); Mirandola(Italy); Nowy Tomyśl (Poland); Gyöngyös (Hungary);
Crissier, Escholzmatt, Sempach (all Switzerland); Allentown, PA , Daytona Beach, FL , Irvine, CA (all US);
Suzhou (China); Tochigi (Japan); Penang (Malaysia);
Hanoi (Vietnam); New Delhi (India); São Gonçalo (Brazil); and Johannesburg (South Africa).
Corporate management
Corporate structure
B. Braun Familienholding SE & Co. KG, the familyowned holding company for strategic management,
includes the Group‘s accounting, controlling, tax, legal, internal auditing, human resources and communication departments. This family-owned holding
company constitutes the link between the family andthe organization. B. Braun SE is the operational parent
company under the family-owned holding company
that directly or indirectly holds all shares in B. Braun
Melsungen AG (Hospital Care), Aesculap AG (Aesculap) and B. Braun Avitum AG (Avitum).

40

Hospital Care

Aesculap

AvitumThe corporate bodies of B. Braun SE are the Executive
Board, the Supervisory Board and the annual shareholders’ meeting. The members of the Executive Board
have clearly assigned areas of responsibility and arejointly responsible for the company‘s success.
The Supervisory Board of B. Braun SE appointed Ingrun Alsleben to the Executive Board of B. Braun SE
effective January 1, 2024. She comes to us from theBayer Group and most recently served as their CEO
and CFO for Turkey and Iran. As of April 1, 2024, shewill take over the position of Chief Financial Officer
from Dr. Annette Beller, who plans to retire on March
31, 2024. Dr. Beller originally worked as an auditor
before coming to B. Braun in 1995. In 2011, she joined
the Executive Board as CFO.
Effective April 1, 2024, Dr. Jean-Claude Dubacher will
join the Executive Board of B. Braun SE with responsibility for the Avitum division. He joined the B. Braun
Group in 2019 and since then has been responsible for
all US-based business. Dr. Dubacher will also be CEO
for B. Braun Avitum AG. He will be taking over both
positions from Anna Maria Braun, who was serving as
acting CEO of the division in addition to her primaryrole as CEO of B. Braun SE .
The Supervisory Board of B. Braun SE consists of 16
members, half of whom are elected by the company’s
annual shareholders’ meeting and the other half by employees. Committees have been established to efficiently support the work of the Supervisory Board. The
Human Resources Committee is responsible for matterssuch as the Executive Board members‘ employment

In 2023, around 52 percent of B. Braun’s workforce
were women. On the Executive Board, two of the fivemembers were women (40 percent; goal: at least 28
percent). On the Supervisory Board of B. Braun SE,
five of the 16 members were women (31 percent; goal:at least 30 percent). The percentage of women in thefirst and second management levels below the Executive Board exceeded 14 percent in 2023 (including
B. Braun SE & Co. KG). Our goal is to increase this
proportion to 17 percent by 2026.
Through its subsidiaries and holdings, B. Braun operates in 64 countries. The B. Braun SE Group includes
286 (previous year: 290) fully consolidated companies. Of the holdings, 19 (previous year: 20) are consolidated using the equity method of accounting.
The B. Braun Group’s strategic operational controllingparameters are sales, profit before taxes, EBITDA margin and return on operating assets (ROOA). These KPIs
are also deciding factors in each senior manager’s
short-term incentives (STIs) and long-term incentives(LTIs), and they define our financial framework going
into the future. Accordingly, we aim to increase sales
by five to seven percent every year, our profit before
taxes should increase by at least the same amount. In
the long term, we are aiming for EBITDA margin of 14
percent and an ROOA of five percent. The key performance indicators interim profit and EBIT are primarily used to manage operations. In addition, we evaluate
the development of working capital based on days
sales outstanding (DSO), days payables outstanding(DPO) and coverage in weeks (CIW).
Compliance
As a family-owned company, we are committed tosocially responsible and law-abiding corporate governance. We have established a global compliancemanagement system in order to ensure compliancewith laws and regulations. For the B. Braun Group,compliance does not mean just obeying the law, it
also includes ethical values such as integrity, fairness
and sustainability, which we embody both internallyand externally with full transparency.

Our Code of Conduct establishes a binding frameworkfor our activities around the world and defines the
ethical conduct of our employees as defined by our
global compliance management system. Every company in the B. Braun Group is required to enact binding minimum rules to this effect. We are continuously
developing our compliance management system. The
high level of digitalization in our business processes
also contributes to increased compliance efficiency
and helps us identify risks early and manage themeffectively.
Strategy
The end of 2023 saw the close of the first three year
phase of our strategic framework B. Braun–the next
decade, which is slated for completion in 2030. In the
beginning, we identified global trends—an aging population, an increase in chronic diseases, and increasing regulation—that are putting pressure on healthcare systems and our customers, and forcing us toreview and realign our product portfolio and businessmodels.
The demanding market environment that exists today
validates the strategy we have been pursuing forthree years now. Through Sharing Expertise and thepower of new technology, we aim to continue to drive
advancements in health care. To accomplish this, weare developing projects and solutions in our four strategic areas: through 1) joint commitment, 2) progressive technologies and 3) digital excellence, we seek to4) align ourselves with our customers’ needs evenmore consistently and offer them the right solutions
for their daily health care challenges with speed andflexibility.
Our regions and divisions spent 2023 mapping theirdevelopment plans for the next three year period,
which ends in 2026. We want to grow using our own
resources and increase our profitability across all regions.
Medical technology
Innovation is the driving force behind B. Braun’s success. We develop the progressive technologies described in our strategy in centers of excellence (CoEs),
where we combine research and development, licens-41

Group management report
About the B. Braun Group

Group management report
Economic report

Economic report

We continue to refine products already establishedworldwide, such as peripheral safety IV catheters andinfusion therapy devices. In the pharmaceutical products and parenteral nutrition business, we are focusing on ready-to-use solutions and application-based
container systems. Digital solutions that improve customer and treatment processes are also gaining significance—particularly in critical treatment applications such as chemotherapy.
At Aesculap, we focus on the growing business in digitalization and robotics. We are systematically expanding our skills and resources to seamlessly integrate our products with digital solutions. One example of this interaction is the development of our instacount® data platform for efficient sterile goods
management in hospitals in conjunction with sustainable OR supply based on our AESCULAP Aicon® sterile
container system. In the Freiburg area (Germany), weare developing visualization solutions for robotic sur-Economic reportin percent
4.6

Economic environment

1

At Avitum, we are focusing on advancing the efficiency and connectivity of our products so they can interact with other products and systems. We are continuously optimizing chronic dialysis therapy and expanding acute dialysis and apheresis therapies. In our
digital innovation projects, we are working on harmonizing and standardizing the patient medical data that
we record in our own renal care centers and homecare facilities. The goal is to increase the quality oftreatment for patients and make processes more efficient and more sustainable. We are also using artificial intelligence to work on predictive analytics
applications for chronic diseases.
In order to make innovative ideas useful for B. Braun,
we bring internal and external experts together
through a number of initiatives and platforms. We areworking on our own innovations with corporate startups and are a strong industry partner for young, creative enterprises. This allows us to create offers forexternal innovations and help develop novel ideas forthe health care industry.

Global economic recovery slowed due to several factors: the long-term effects of pandemic and war alongwith an ever-growing protectionist sentiment in large
national economies scaled back growth. The fiscal
support provided to businesses in recent years also
decreased and policy measures to counteract inflation
slowed. The developed countries in particular were
impacted by these factors, with growth slowing from
2.6 percent in 2022 to 1.5 percent in 2023.
Even globally operating medical technology companies felt the effects of trade restrictions caused by
growing protectionism. Logistic costs in 2023 decreased slightly, though supply bottlenecks continued
to hamper the secure supply in many health care markets. This was accompanied by an increased skills
shortage in health care, which led to increased recruiting of foreign nurses, especially in developed
countries.
Nevertheless, the medical technology market in 2023
saw above-average growth of 4.6 percent comparedto the previous year, coming in at approximately US$
522 billion. The highest sales figures were in North
America, followed by Asia–Pacific and Europe. The
segments that saw the most sales were minimally invasive medicine and cardiology; anesthesia, imaging,orthopedics and wound care also saw strong sales.

IMF: World Economic Outlook (January 2024) & Regional Outlooks(October–November 2023); OECD: Economic Outlook (October 2023);
ifo: Economic Forecast (September 2023); BVMed: Autumn Survey(10/17/2023) and MedTech Market Presentation (11/13/2023); Roland
Berger: Hospital Study 2023 (10/28/2023); German Hospital Federation (07/18/2023, 10/09/2023); Ärzteblatt (06/23/2023, 09/29/2023);

2.5

2.4

2.4

1.3

er
Am
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id a
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t

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-0.3

y

Global trends
The global economy continued to recover in 2023
from the economic downturn caused by the coronavirus pandemic and Russia’s war against Ukraine. Economic output grew 3.1 percent, though still fell shortof the growth in 2022 and remained below pre-pandemic levels. At the same time, countermeasures enacted by central banks reduced inflation from 8.7 to
6.9 percent.

Global 3.1

an

We are also expanding our value proposition in orthopedics to include holistic, software-supported solutions for our customers and patients. The harmonization and standardization of health care processes
leads to greater transparency, efficiency, quality and,of course, savings for our customers. Alongside ourinnovations, we are optimizing applications used togenerate our technical documentation, consistently
turning to digitalization in the development of our
product life cycle management platform in order tocontinue to increase efficiency and quality.

142

Change in gross domestic product 2023

rm

At Hospital Care, we focus on innovative concepts toincrease efficiency at hospitals and in ambulatory settings. In order to continue to improve the use of infusion pumps, we are working on integrated solutions
for medication management that make the processfrom prescription to administration safer and reduce
the amount of documentation required.

gery. This will allow us to create new digitalized treatment methods, promote the exchange of knowledge
and improve patient treatment outcomes.

Ge

ing and production in certain specializations. The department experts at these CoEs work closely with one
another. At our production sites, we utilize digital processes and work on our technology platforms including
investments in automation, robotics, sensor technology
and predictive maintenance. When developing new products, we make sure to use materials in a manner thatconserves resources. In the reporting year, we invested
5.5 percent of our sales in research and development.

Regional trends
Germany was one of the few countries whose economic output declined in 2023. The country’s export-based economy suffered, especially from overall
poor global trade, and this also impacted medical
technology companies, whose export quota in 2023
was 67 percent. Although the industry grew 4.8 percent from the previous year, income decreased due tohigh prices for logistics, raw materials and energy as
well as growing regulatory expenditures and rising
personnel costs. Consequently, research investments
were increasingly relocated abroad. The German
health care industry came under serious pressure in
2023, with the already tense financial situation of
hospitals worsening.
Economic growth in Europe slowed by half in 2023 to
1.3 percent. The governments of many EU member
states invested in the upgrading and digital transformation of their health care systems, supported in partby EU funding. Regulatory hurdles impeded the tradeof medical devices between EU countries and Switzerland as well as their approval in the United Kingdom,
though the Department of Health and Social Care released its first medical technology strategy in 2023 tospeed up access to innovative technology. Even
though medical devices were largely unaffected by EU
sanctions against Russia, fewer European manufacturers sent them to Russia’s health care industry.

GTAI (06/13/2022, 12/05/2022, 12/19/2022, 02/16/2023, 05/26/2023,
06/16/2023, 07/25/2023, 07/28/2023, 09/18/2023, 10/06/2023,
10/18/2023); MEDTECH News: UK MedTech Innovation Strategy(02/06/2023), CMS: US Inflation Reduction Act (09/12/2023), Regulatory Focus: Regulatory Affairs in India (10/16/2023).

43

Group management report
Economic report

Group management report
Economic report

Economic report
In the US economic growth remained stable in 2023.
The federal government bolstered the economy andthe population with major infrastructure and economic programs. Tax breaks stimulated investment
and consumption. The Inflation Reduction Act also
partly lowered insurance premiums and copays anddrug costs. Rising patient numbers improved hospitalincomes, but these remained strained by supply bottlenecks, high labor costs and skilled employee shortages.
The Asia–Pacific region continued to be the most dynamic economic region in 2023, with a growth of 4.6
percent. The two most populous countries, India andChina, accounted for half of all global growth despitesome structural problems. Demand for modern medical technology remained high in the region and was
met in Japan, South Korea and the ASEAN countries
primarily by imports. The Chinese government gave
preference to domestic manufacturers in approval
processes and public procurement as part of its “BuyChina” policy. The government’s centralized procurement and resulting high purchasing volume increased
price pressure on medical devices and drugs. In India,
the regulation for all medical devices moved forward,
meaning extra costs for foreign manufacturers.
Latin America’s growth trend declined in 2023 compared to the previous year, though not across the board. While Argentina and Chile slid into a recession,
the largest national economies, Brazil and Mexico,
exceeded economic expectations. Chronic diseases inparticular increased in the region due to rising life
expectancy. National governments responded by expanding health care, which also drove demand for
medical devices. Economic growth in the Africa andthe Middle East region decreased in 2023 due to factors such as the curbing of high inflation, natural disasters, power failures and the throttling of oil exports.
South Africa’s government passed a national healthinsurance law intended to make care affordable forthe general population starting in 2026.

Key performance indicators

Sales (in € million)
Gross margin (in percent)
Net profit margin after taxes (in percent)

2022

2023

Changein percent

8,499.8

8,755.0

3.0

38.0

37.9

1.7

1.4

Interim profit (in € million)

329.4

434.8

Profit before taxes (in € million)

178.7

206.0

15.3

Consolidated net income (in € million)

142.2

125.2

-12.0

EBIT (in € million)

247.9

316.2

27.5

EBITDA (in € million)

997.2

1,019.4

2.2

EBITDA margin (in percent)

11.7

11.6

Equity ratio (in percent)

45.8

45.3

Equity ratio including loans from shareholders (in percent)

46.6

46.1

Equity ratio net of effects of IAS 19 (in percent)Net financial debt (in € million)

46.4

46.9

2,430.1

2,300.3

32.0

-5.3

Debt-equity ratio (Net financial debt / EBITDA)

2.4

2.3

Research and development expenses (in € million)

541.2

484.6

-10.5

Investments in property, plant, and equipment, intangible assets andfinancial investments (in € million)

647.0

698.5

8.0

Depreciation and amortization of property, plant, and equipment andintangible assets (in € million)

749.3

703.2

-6.2

Net working capital (in € million)

2,557.2

2,615.4

2.3

Personnel expenditures (in € million)

3,201.4

3,266.1

2.0

Employees (as of December 31)

65,05563,011-3.1

44

Performance and financial position
Business performance
In the 2023 fiscal year, B. Braun sales grew 6.5 percent at constant exchange rates. We maintained ourlong-term growth strategy and met our strategic target corridor of five to seven percent in an environment that continues to be demanding. Sales in thereporting currency increased 3.0 percent to € 8.8 billion (previous year: € 8.5 billion).
Hospital Care benefited the most from price effects
on the market in the fiscal year. The sharp decline in
CAPS business in the US, which includes patient-specific drug compounding, could be offset by sales inother product areas. The Aesculap division saw strong
sales growth, especially in surgical instruments, hipand knee implants, imaging systems and suture materials. Avitum generated sales growth mainly in theextracorporeal blood treatment therapy range as wellas in wound and ostomy care products and from renalcare centers, where patient numbers reached the previous year’s level, at over 27,000. Sales of PPE andgloves declined.
We saw stable growth in Germany in 2023. In Europe,strong results were recorded in local currencies in the
United Kingdom, Poland, Benelux and Southeastern
Europe. We also achieved good growth rates in Spain
and Portugal. With the aid of positive currency effects, we saw stable growth in North America andwere able to offset the decline in CAPS business. The
Asia–Pacific region showed positive growth overall atconstant exchange rates, although sales in the largest
market, China, declined due to distributor inventory
reductions, volume-based procurement and political
restrictions. Our highest growth rates came from India and Southeast Asia. Our business in Latin America
saw significant growth in 2023, with all countries
achieving double-digit growth at constant exchange
rates. However, sales in Argentina in the reporting currency decreased due to persistent hyperinflation andthe national currency’s corresponding decline against
the euro. We also saw double-digit currency-adjusted
growth in the Africa and the Middle East region.
We continued targeted measures to increase profit
during the reporting year, many of which were successful and able to partially offset negative effects.

Despite considerably higher prices for raw materials
and energy combined with negative currency effects
as well as one-off effects in the US, we were able tokeep our gross margin virtually unchanged (-0.1 percentage points). Normalized freight costs allowed fora substantially improved ratio of selling expenses tosales. Administrative costs in the reporting currency
grew due to rising personnel expenditures as well as
higher expenditures for energy, software licenses andconsulting services. Expenditures to meet regulatory
requirements and for new development projects increased spending on research and development, as
expected, though an unscheduled amortization in thearea of biologics in 2022 meant lower expenditures
for research and development overall. Operating profit improved from the previous year thanks to somesuccessfully implemented measures.
The one-time effects at our US location in Daytona,
the impact of the recall and temporary production
pause of our CAPS business in the US, negative currency
effects and the subsequent effects on other expenses
reported later prevented us from reaching our EBIT
target of € 480 million to € 520 million (actual: interim profit of € 434.8 million and EBIT of € 316.2 million).
The EBITDA margin in the reporting year remained
virtually unchanged at 11.6 percent (previous year
11.7 percent). DSO remained at a low level (62 days),though inventory coverage decreased by 1.2 weeks to
17.6 weeks. This is above our strategic goal of 16
weeks, with raw material inventories being higher toguarantee supply to the health care industry andhedge against potential supply chain disruptions. Profit is satisfactory given overall political trends.
Overall, the B. Braun Group’s good market position in
2023 allowed for steady sales growth and the Groupfinds itself in good and stable economic health despite the persistently demanding global environment.
We currently do not identify any significant deterioration in B. Braun’s economic stability.
Earnings
B. Braun Group’s sales growth
In the 2023 fiscal year, the B. Braun Group earned€ 8,755.0 million in sales (previous year: € 8,499.8
million), or 3.0 percent higher sales than the previous
year (6.5 percent at constant exchange rates).

45

Group management report
Economic report

Group management report
Economic report

Sales developmentin € billion

7.47

2019

7.43

2020

7.86

2021

8.50

2022

8.76

2023

Business performance of the Hospital Care division
The Hospital Care division increased sales by 3.4 percent (7.0 percent at constant exchange rates) to€ 4,694.3 million (previous year: € 4,541.6 million).
For the 2023 fiscal year, growth was driven primarily
by Western Europe and Latin America. An FDA inspection of our CAPS business in the US led to a recall andtemporary production pause, resulting in a significant
drop in sales. This could be offset by other productranges, however, so the previous year’s sales in North
America were slightly exceeded. Price effects on themarket were generally positive in all product ranges
and regions. Aside from price adjustments due to inflation and without the effect from CAPS, the division
saw stable volume growth, although exchange rate
fluctuations weighed down sales in the reporting currency. In terms of products, the division recorded
sales growth mostly in IV solutions, single-use products for automatic infusion systems, IV sets and accessories as well as in IV catheters and the regional
anesthesia range.
Business performance of the Aesculap division
In the last fiscal year, the Aesculap division reported
sales of € 2,164.3 million (previous year: € 2,056.4
million), increasing 5.2 percent (8.7 percent at constant exchange rates) over the previous year. The division generated clear sales growth in Europe, the US,
and some countries in Latin America. China was the
only market in which sales declined, and this was due
to distributor inventory reductions and volume-based
procurement. With the exception of the areas neurosurgery and biologics, the division recorded substantial volume growth in all other product ranges.
Demand grew especially for knee and hip implants,

surgical instruments, imaging systems and suture material. Only sales of coronary angioplasty products
declined due to business performance in Japan. Overall, we were able to increase market prices acrossmost of the portfolio.
Business performance of the Avitum division
Sales in the Avitum division remained virtually unchanged at -0.7 percent in the reporting year (2.7
percent at constant exchange rates), totaling€ 1,849.5 million (previous year: € 1,861.9 million).
This was caused by a decrease in the infection prevention and control range due to higher sales ofgloves and masks in the previous year as a result of
the coronavirus pandemic. Sales of extracorporeal
blood treatment products increased slightly in 2023.
We were able to offset slowed growth in China in thesecond half of the year with expanding markets in
Brazil, Mexico and the US. Our provider business reported solid growth due to stable treatment numbers,
especially in the centers in Hungary, France andCzechia. Unextended contracts in the Philippines andUnited Kingdom as well as the sale of a dialysis clinic
in Sweden had no relevant effect on sales. Woundcare, ostomy care and continence care experienced
strong growth compared to 2022, especially in Italy,
France, Poland and the United Kingdom.
Development of gross profit
Gross profit in the 2023 reporting year increased 2.8
percent to € 3,322.4 million (previous year: € 3,231.2
million). Our gross margin declined by 0.1 percentage
points to 37.9 percent (previous year: 38.0 percent),strained by rising purchase prices for energy and raw
materials along with increased personnel expenditures and unscheduled amortizations. An impairment
test on assets under construction to increase capacity for bagged irrigation solutions at the US location
in Daytona resulted in an unscheduled amortization.
Together with the effect of the CAPS production stoppage, the amortization resulted in a loss of gross profit in the high double-digit million range. A strong
euro also reduced our gross margin by 1.3 percent inrelation to sales.
Development of functional expenses
Selling expenses increased 0.4 percent to € 1,947.7
million (previous year: € 1,940.6 million). Volumebased freight costs significantly decreased from theprevious year due to better rates. We were able tooffset a rise in other selling expenses caused by higher HR expenditures and marketing activities throughdisciplined cost management and efficiency.

Expenditures for research and development declined
10.5 percent to € 484.6 million (previous year: € 541.2
million) in the reporting year. This cost reduction was
mainly due to an unscheduled amortization in biologics the previous year. The adjusted cost volume cameto the same level as the previous year, which is within our long-term strategic framework.

Administrative expenses in the fiscal year came to€ 455.3 million (previous year: € 420.0 million), for an
increase of 8.4 percent over the previous year. The
cost increase was caused primarily by rising HR andenergy expenditures as well as rising costs for hardSales by divisionin € million

4,542

4,694

4,125

2,056

1,869

Hospital Care

2,164
1,830 1,862 1,849

Aesculap

AvitumSales by regionin € million

2,784

2,917

2,564
2,268 2,304
1,952

1,363

1,346 1,407 1,353

1,289 1,320

410 478

Germany2021  

46

ware, software licenses and consulting for our strategic digitalization projects.

2022  

Europe(without Germany)

North America

Asia-Pacific566

Latin America

295
238 274226

Africa and the
Middle East

2023

47

Group management report
Economic report

Group management report
Economic report

Development of investments
In the 2023 reporting year, total additions to property, plant and equipment, intangible assets and financial assets, and additions to investments in associatedcompanies and acquisitions of fully consolidated
companies amounted to € 698.5 million (previous
year: € 647.0 million). Of that total, € 160.1 million(previous year: € 66.3 million) was attributable to additions to right-of-use assets under IFRS 16 for theextension of existing as well as the signing of newlease agreements. Investments were offset by amortization and depreciation totaling € 703.2 million(previous year: € 749.3 million).

production line for high pressure-resistant safety-engineered port access needles. We also invested inmaintaining and optimizing production processes.
At the location in Sempach, Switzerland, the Avitum
division completed construction of a new plant fordisinfection products. Construction also began to expand the Am Buschberg plant in Melsungen, Germany.
In Italy, we continued to invest in the expansion of
our production plant in Nibbia so that we can manufacture medical-grade plastic film for key productgroups ourselves. In Hanoi, Vietnam, a modern factory was built to produce hemodialysis concentrates tosupply the local market. We also invested in new production equipment in Saint Jean de Luz, France, inorder to safeguard and modernize the manufacture of
ostomy bags.

The Hospital Care division continued construction ofa new medical manufacturing plant in Melsungen,Germany, on schedule in 2023. At that same location,
we began investing in relocating production lines for
propofol, amino acids and lipid emulsions. We also
continued a forward-looking project on automating
infusion pump production. At the Bad Arolsen location in Germany, we invested in the expansion andmodernization of our syringe production. At the locations in Daytona Beach, FL and Allentown, PA in theUS, we have almost completed our major investment
programs. Here, we produce large-volume IV solutions
and medical devices, including those for infusion
therapy.

As of the reporting date, investment commitments
totaled € 196.2 million. These investments are largely
part of ongoing replacement and expansion investments in the above-mentioned locations.
Development of other operating income and expenses
The balance from other operating income and expenses for the reporting year came to € -138.1 million(previous year: € -95.2 million), a decrease of € 42.8
million. Our negative currency result from the previous year increased by € 23.7 million to € -52.5 million(previous year: € -28.8 million) due to the valuationof receivables in foreign currencies. Other significant
negative effects in other operating income and expenses were the result of legal costs and provisions
for various legal proceedings in the US (€ -56.4 mil-

The Aesculap division continued its investment projects to increase sterilization capacity at our production plant in Poland and expand the packaging
technologies and capacity for our suture material
plant in Rubí, Spain. In Malaysia, we completed a thirdlion), accruals for risks in Russia (€ -22.6 million) andwrite-downs (€ -28.9 million). In contrast, the transfer of the shares of a non-core subsidiary to B. Braun
Holding GmbH & Co. KG resulted in income totaling€ 17.8 million.
Development of net financial income
Negative net financial income rose in fiscal year 2023
by 63.6 percent to € -90.8 million (previous year:€ -55.5 million). Interest expenses totaled € 76.6 million, increasing € 24.1 million from the previous year(€ 52.5 million), primarily due to higher interest for
pensions. Interest income amounted to € 10.3 million(previous year: € 8.0 million). Profit from investments
amounted to € 19.6 million (previous year: € 14.3 million), including dividends paid from an investment fund.
Development of earnings figure
Interim profit was € 434.8 million, an increase of 32.0
percent (previous year: € 329.4 million). EBIT in the reporting year reached € 316.2 million (previous year:€ 247.9 million), € 68.3 million above the previous year’slevel. Depreciation declined to € 703.2 million (previous
year: € 749.3 million), for an EBITDA of € 1,019.4 million(previous year: € 997.2 million). The EBITDA margin decreased by 0.1 percentage points to 11.6 percent of sales(previous year: 11.7 percent of sales).
Profit before taxes improved 15.3 percent, reaching€ 206.0 million (previous year: € 178.7 million). Income taxes for the fiscal year amounted to € 80.8

365

690

799

2019

Depreciation and amortization  

48

77

485

Research and development activities(2022: thereof € 75.1 million unscheduled amortizations)41

43

Investments in financial assets

606

656

Investments in fixed assets

749

630

753

2020

2021

997

1,019

2022

2023

million, up € 44.3 million from the previous year(€ 36.5 million). The clear increase in the Group’s tax
rate was due to lower tax income from the capitalization of tax credits as well as write-downs of losses carried forward. Payment of back taxes and provisions due
to external tax audits in various countries also led to anincrease in tax expenditure. Consolidated net income
was € 125.2 million (previous year: € 142.2 million).
ROOA came in at 1.4 percent, which represents a reduction compared to the previous year’s 1.6 percent,due to lower consolidated annual net income.

Financial position
Liquidity
Operating cash flow totaled € 719.0 million (previous
year: € 718.9 million), up by € 0.1 million from the previous year. Cash outflow from investing2 was low-

2,889
541

485

Research anddevelopment expenses

2,361

2,403

Selling and generaladministration
expenses

417
370

1,183
541

29
621

2020

1,102

417

370
96

2019

2,599
2,428
364

1,188

1,103

2,902
2,551

1,217

1,079

in € millionin € million

1,153

in € million

Functional expenses

Investments in financial assets, property, plant, and equipment, and research and development

1,259

EBITDA

722

2021

2022

703

2,187

2019

2023

Investments (including research and development activities)

2,182

2,058

2020

2021

The difference between additions to fixed assets and cash outflow from investingis the product of cash-relevant investments and currency translation effects.

2022

2023

2

49

Group management report
Economic report

er by € 99.8 million to € 465.4 million in the reporting
year (previous year: € 565.1 million). This was mainly
due to an influx of € 37.2 million from the sale ofshares in two Group companies. The reporting year
saw a positive free cash flow of € 253.6 million (previous year: € 153.8 million). Accordingly, cash flow forinvestments in plant, property and equipment as wellas intangible assets totaled € 519.9 million (previous
year: € 549.0 million) and € 47.8 million (previous year: € 43.9 million) for investments in financial
assets and business acquisitions. At the same time,
B. Braun received dividends and dividend equivalentsin the amount of € 24.3 million (previous year: € 18.0
million). Net loan repayments for the reporting year
totaled € -252.3 million (previous year: net loan repayments of € -69.7 million). Overall, cash and cash
equivalents declined by € 7.7 million as of the reporting date to € 105.8 million (previous year: € 113.5
million). Of this amount, € 14.6 million are subject todisposal restrictions (previous year: € 17.7 million restricted) due to local foreign exchange and capitaltransfer controls. Stable cash flow from operations inconjunction with open, firmly committed credit lines
gives B. Braun adequate liquidity at all times.
Asset structure
As of December 31, 2023, the total assets of the
B. Braun Group decreased to € 10,372.7 million (previous year: € 10,566.6 million). This corresponds to adecrease of 1.8 percent. At constant exchange rates,
total assets increased 0.8 percent.
Non-current financial liabilities decreased 3.3 percent
to € 6,569.7 million (previous year: € 6,794.0 million).
Property, plant and equipment decreased 2.4 percent
to € 5,388.6 million (previous year: € 5,520.6 million).
This decrease was largely the result of translation effects.
Inventories as of the reporting date amounted to€ 1,843.7 million, 3.4 percent (0.3 percent at constantexchange rates) below the previous year (€ 1,908.6
million). Inventory coverage was 17.6 weeks (previous
year: 18.8 weeks). When adjusted for currency fluctuations, inventories were kept constant with growing
business volume. We also keep more raw material ininventory to guarantee supply and hedge against potential supply chain disruptions. Trade receivables increased by 4.9 percent (9.0 percent at constantGroup management report
Economic reportexchange rates) to € 1,379.8 million (previous year:€ 1,315.2 million). Trade receivables DSO increased by
one day to 62 days.
Financing structure
Equity decreased by 2.8 percent (-1.1 percent at constant exchange rates) to € 4,702.1 million (previous
year: € 4,839.7 million). The equity ratio was 45.3
percent (45.0 percent at constant exchange rates), 0.5
percentage points lower than the previous year’s level (45.8 percent). This means we reached our strategic
target level of 45 percent. When factoring in shareholder loans, the equity ratio was 46.1 percent. In thereporting year, the actuarial interest rate for pension
provisions declined to 3.5 percent (previous year: 4.1
percent); therefore, actuarial losses rose € 137.2 million. Accordingly, total provisions for pensions andsimilar commitments increased by 16.2 percent to€ 1,223.3 million (previous year: € 1,052.8 million).
Our net financial liabilities (including IFRS 16) decreased by € 129.8 million to € 2,300.3 million (previous year: € 2,430.1 million). Financial liabilities
totaled € 2,406.1 million, coming in below the previous year’s level (€ 2,543.6 million). Non-current financial liabilities increased 3.9 percent to € 1,707.9
million (previous year: € 1,644.3 million). Current financial liabilities, in contrast, decreased 22.4 percent
to € 698.2 million (previous year: € 899.3 million).
Financial liabilities from leasing rose in the fiscal yearby € 32.2 million to € 423.7 million (previous year:€ 391.5 million). Most Group financing is conductedin euros; however, there are also small loans in various
foreign currencies. As of the reporting date, 50.0 percent (previous year: 54.6 percent) of financial liabilities to banks and insurance providers carried a fixedinterest rate. Trade accounts payable declined 8.9
percent to € 584.9 million (previous year: € 642.2
million). Trade payables DPO decreased by 4 days to
45 days (previous year: 49 days).

Structure of statement of financial position: Assets
in € million

10,565854

9,720

10,373667

Intangible assets(including goodwill)

5,389

Property, plantand equipment

1,909

1,844

Inventories

832
832

5,521
5,244

1,240

1,380

2019

5,451

5,150

1,370

1,450

1,640

1,183

1,221

1,315

1,380

Trade accounts receivable

1,105

1,062

1,091

1,093

Other assets

2020

2021

2023

2022

Structure of statement of financial position: Equity and liabilitiesin € million
10,565

10,373

10,206

10,088
9,720

3,721

2,687

1,580

1,728

527

450

1,226

1,214
2020

4,840

4,158

3,641

3,034

In 2023, we were able to refinance maturing loans
mainly through available credit lines or settle them outof free cash flow. As of the reporting date, theB. Braun Group had € 1,132 million (previous year:€ 1,330 million) in unused credit lines. The asset-backed
securities program was largely financed by the backup
line of credit during the reporting year. All key performance indicators agreed with the banks were met. The
B. Braun Group’s financial position in 2023 was stable.
2019

50

729

10,206

10,0884,702

Equity

2,544

2,406

Financial liabilities

1,053

1,223

Pension obligations

520

642

585

Trade accounts payable

1,340

1,486

1,457

Other liabilities

2,542

1,646

2021

2022

2023

51

Group management report
Risk and opportunities report

Group management report
Risk and opportunities report

Risk and opportunities report
Risk and opportunities report
Risk management and controlling
All strategic and operational decisions at B. Braun are
made with consideration of the risks and opportunities involved. We have a fundamentally cautious corporate strategy and avoid any uncontrollable potential
risks. Risk management and controlling are key management tasks and are an essential part of Groupmanagement. Our risk management ensures that risks
are identified, documented, assessed, monitored andmanaged. Risks resulting directly from business operations are promptly identified and assessed by ourGroup-wide controlling processes. We also identify
and manage risks that do not result directly frombusiness operations. The divisional and Group risk
committees assess these risks and document appropriate countermeasures. Our risk management isrounded out by an internal audit department and ultimately by the annual audit of financial statements.
Risks
The risks identified here do not constitute every risk
to which B. Braun is or may be exposed to. Risks thatare not known or are considered to be insignificant at
the time this annual report was prepared may also
impact the earnings and financial position of the
B. Braun Group.
Macroeconomic risk
High prices for raw materials, energy and food as wellas supply chain disruptions and protectionism arerisks that have been present since the pandemic. The
extent of these risks in the coming years will continue to be influenced by the impact of inflation, which
remains at a high level.
In general, we believe B. Braun is in a stable positionin the face of economic factors. Capital goods may be
negatively affected.
In 2023, inflation led to a further tightening of monetary policy in the developed economies. Forecasts
show that the inflation rate in 2024 in the eurozone
will move toward the target range of 2 percent as
defined by the European Central Bank. The high infla-

52tion of over 8 percent in emerging and developing
countries is not expected to ease in 2024 and could
put individual countries under enormous financialpressure.
Many countries have very high debt levels from support packages during and after the pandemic, which
are accompanied by rising financing costs. These
countries will be forced to continue to reduce relief
packages supporting the economy and population,
which might make them more susceptible to an economic crisis.
The global economy would also be destabilized by
geo-economic and geopolitical uncertainty. Exacerbation of the real estate crisis in China could lead toa banking crisis. If the conflict between Israel and thePalestinian territories that broke out again in October
2023 spills over into neighboring areas, it has the potential of driving already high oil prices even further
upward. An escalation of Russia’s war against Ukraine
could further increase prices for raw materials, energy and food. We currently view our energy supply as
secure in general as well as due to actions taken at
our production sites. An increase in protectionist aspirations could have a considerable impact on the
global flow of goods.
The sanctions against Russia restrict the businessactivity of foreign companies in Russia. The US imposed sanctions on a considerable number of specificmedical technologies. In contrast, the EU has included
only a few medical devices in its sanctions. We currently believe that the B. Braun product portfolio will
not be affected by such restrictions even in the
future. Within the legally permissible limits, we havemaintained our business activity in Russia at a level
necessary for patient care. Depending on the courseof the war, there is a risk that B. Braun will lose business in Russia and suffer a one-off impact on profit in
the lower three-digit million-euro range. To mitigate
part of this risk, a provision was set up in the fiscal
year in the lower tens of millions. Furthermore, someof these risks are hedged by export guarantees from
Germany’s federal government. We currently see nofundamental risk regarding the availability of cash
and cash equivalents, although there are stipulations
for capital transfer, including principal and interest as
well as dividend payments.

Industry risk
The long-term trend toward protectionist health caremarkets has accelerated due to pandemic and geopolitical conflict. Companies in the health care industry
are forced to establish local production in countries
such as China and Indonesia in order to be an eligible
tenderer and receive approval for medical devices
sooner.
Companies in the health care industry are particularly affected by high inflation. Heavy price increases for
input materials, high energy costs and rising personnel costs usually cannot be passed on to the customer to the same extent, which decreases profitability.
Medical facilities are also under serious financialpressure, which can lead to late payments or evendefault.
The structural risks for companies in the health careindustry may impact B. Braun’s profit.
Regulatory risks
The high concentration of regulatory developments
and the administrative burdens involved are putting
increasing strain on companies, including those in thehealth industry. The EU’s Medical Device Regulation(MDR) continues to complicate the approval process
and delay access to innovation.
Impending regulations at the EU level may constituteadditional economic risk for the industry. A new product liability directive could subject medical device
manufacturers to stricter liability rules, such as anelevated risk in development and liability brought
about by the reversal of the burden of proof.
A European regulation on artificial intelligence (AI)
could also result in additional regulatory requirements, although these will be partly mitigated by theuse of existing approval processes under the MDR and
its expansion to cover AI aspects. Implementation of
the EU’s regulation on health technology assessments
is associated with uncertainty for companies in thehealth industry in terms of affected products as wellas the timing and impact of the assessment.
Implementation of legal requirements under the EU
Green Deal places a significant bureaucratic burden
on companies, particularly the documentation andreporting requirements of the Corporate Sustainabil-

ity Reporting Directive (CSRD) as well as the supply
chain due diligence requirements, all of which requiresignificant resources to fulfill. Expanded data requirements and material use restrictions under the EU’s
chemical strategy for sustainability also have an impact on the health care industry.
In order not to jeopardize their competitiveness, companies need to analyze, assess, meet and document
all of these requirements in a systematic and structured manner. The European Commission’s initiative
to reduce administrative burden and streamline reporting requirements could have an appropriate mitigating effect.
Legal risk
B. Braun is exposed to risks from legal disputes, which
can include present or future proceedings. Possible
violations of laws or regulations can result in sanctions that can have a negative effect on our reputation and earnings. Violations may also result in thepayment of out-of-court settlements. We have established a global compliance management system inorder to ensure compliance with laws and regulations.
Lawsuits have been filed against B. Braun companies
in the United States in relation to the ethylene oxide
sterilization process in Allentown, PA (United States).
In 2020, a class-action lawsuit was filed claiming residents were at higher risk of cancer, though the case
had not been adjudicated as of the reporting date. Asof December 31, 2023, a total of 91 civil suits wereongoing in the US. Proceedings for the first of thesesuits may begin in June 2024. These suits allege thatemissions from the facility have caused personal injury to the plaintiffs. B. Braun considers these allegations unfounded.
There are currently no risks arising from ongoing proceedings or known circumstances that could jeopardize the company’s continued existence.
IT security risks
A failure of key IT systems or the loss, unauthorizedalteration or disclosure of data can have serious consequences, including interruptions in business operations, loss of reputation, fines and legal claims.

To mitigate these risks, we have put in place variousorganizational and technical security measures, such as

53

Group management report
Risk and opportunities reporta global system for detecting and warding off cyberattacks, authorization concepts based on the principle of
least privilege, redundancies in infrastructure and employee training. We continue to standardize our production networks and continuously monitor them withsystems that identify weaknesses.
We have also implemented an information security
management system (ISMS) according to international
standard ISO/IEC 27001 and continue to refine it. We
use an established plan–do–check–act cycle to ensurethat the system’s maturity level develops in line withrequirements. In an environment of advancing digitalization and a constantly changing threat situation, forexample from ransomware Trojans, we are constantly
reviewing and implementing new security measures.
Reducing security risks will remain one of the fundamental tasks for guaranteeing the smooth running ofprocesses within the Group in the future.
Many countries have also expanded legal requirements
on cybersecurity due to increasing cyberattacks on
critical infrastructure such as hospitals and other medical facilities. In 2024, the EU’s NIS2 Directive will betransposed into national law at member state level,
requiring companies to address cybersecurity with asimilar degree of regulation as data protection. This is
why we regularly evaluate the relevant standards andapply the results to our development processes.
IT risks will also grow for companies in the health careindustry in the coming years. B. Braun continually develops and refines its security measures and ISMS in orderto detect risks early and defend against cyberattacks.

Product risk
We address risks arising from the use of our productswith quality management systems within our divisions. These are based on international standards toassure that all regulatory requirements are observed.
Regular reviews of our quality management systems
using internal and external audits, together with continuous employee training, round out our quality
management.
To minimize risks from product liability, we have inplace an international liability insurance program

54

Group management report
Risk and opportunities reportwith a consortium of eight primary insurers. Our global Product Security Office, created in 2022, routinely
reviews the relevant standards for B. Braun products
and ensures that the products fulfill them.
Potential risks from our products can harm B. Braun’s
profit but can easily be minimized by the existing
quality management systems and the established
Product Security Policy. Appropriate structures andprocesses for proactively monitoring for potential cyberattacks, dangers and risks guarantee high productsafety throughout the entire product life cycle.
Procurement risk
A shifting political and macroeconomic environment
can result in more frequent instability and volatilityon the procurement markets, including in the future.
Risks can arise here that can affect price trends for
raw materials and energy, availability, delivery times
and supply chain reliability. Against the backdrop of
escalating conflict in the Middle East, we currently
consider the impact on delivery times to be manageable. Persistently high inflation rates will continue toaffect prices. A potential economic downturn could,
on the other hand, lead to a delayed softening of inflation. The materialization of these risks may impact
production supply, thereby impacting B. Braun’s supply capabilities. The regulatory risks indicated above
will affect the growing requirements for supplier selection and the monitoring and development of existing suppliers.
Inadequate natural gas supply generally could also
affect European production facilities, however, thelast two years have shown that Europe can ensure an
uninterrupted gas supply. For this reason, we do not
expect any bottlenecks for B. Braun or its suppliers.
We have also retrofitted major production facilities in
Europe to use alternative energy sources so we canswitch to these in the event of a gas shortage.
Thanks to prompt corrective action, such as the buildup of safety stocks and a uniform market approach,we have been able to ward off procurement risks so
far and prevent any significant production delays orinterruptions. Our long, trusting and fair cooperation
with our suppliers was also a key factor.

We conduct regular risk assessments to minimize therisk of default. If a supplier is identified as a high default risk, we have a range of processes and instruments in place to ensure continuous supply. These
include close communication with our key suppliers,
disaster recovery plans, inventory buildup at B. Braunor at the supplier, multiple sourcing strategies, and ageneral diversification of our supply chains.
We anticipate no significant change in procurement
risk in 2024. In light of current market trends, we arecontinuing to expand our risk management to reduce
procurement risk. We believe isolated delivery delays
are possible. We currently see no indication of a lasting disruption of our production and sales processes
caused by procurement risk.
Human resources risk
The demographic trend toward an older population is
rapidly changing society and the world of work, andis putting more pressure on companies to act. This isparticularly evident in the shortage of skilled workers
in IT, engineering, logistics, trades and nursing. This is
why we are working on further improving our recruiting process, which means, above all, becoming moredigital and, therefore, faster. At the same time, we are
breaking new ground in recruiting new employees forthe company, such as through active sourcing acrossvarious business networks.
Given the volatile market conditions and the costpressure involved, the need for companies to act witheven greater efficiency is growing. B. Braun is facingthese changes with a profitability program launchedin 2022, in which we are analyzing our current structures and optimizing our processes. At the same time,
we are refraining from filling vacancies whenever we
can compensate for the position with additional automation and improved processes.
At B. Braun, we offer attractive training opportunities,
working conditions and terms that go beyond thosefound in collective bargaining agreements. We believe
in developing our employees, with the goal of preparing them for digitalization and acquiring new skills fortechnically demanding roles at B. Braun. By doing this,
we are enhancing our employees’ qualifications in order to fill most vacancies from within.

A skilled worker shortage can overburden the existing
workforce. With many countries raising their retirement age, all employees should be able to reach thispoint with their health still intact. This is why we believe in preventive health management that helps
them to avoid both physical and mental illness.
Thanks to our continuously refined HR processes, weshould to be able to cushion the impact of volatile
market conditions and skills shortages, even if both
trends should continue to intensify in the coming
years.
Financial risk
B. Braun operates internationally and is exposed tocurrency risks, which we reduce through currency
hedging transactions wherever possible and appropriate. The Group regularly hedges its net position fromrecognized receivables and payables against currency
risks with foreign currency derivatives and borrowing
in foreign currencies. In Brazil, we used layered hedging in isolated instances until mid-2023 to cover expected liabilities that were not yet recognized. Trading
and management of derivative financial instruments
are regulated by internal guidelines and are subject tocontinuous risk monitoring.
To manage liquidity risk, we maintain sufficient reserves of short and long-term committed credit lines.
This especially includes a syndicated loan agreementfor € 700 million, which we extended in the reporting
year out to 2028. There is also the risk of a possible
deterioration in the payment behavior of our customers or public payers. Limited financing options canhave a negative impact on liquidity and an individual
customer’s ability to pay.
After the coronavirus pandemic, rising interest andinflation rates now pose an elevated risk of default inour receivables. Cost and price increases are further
aggravating our customers’ financial performance andfinancial position, which were already strained during
the pandemic. In light of this, we expect a future
trend toward consolidation in international healthcare industries despite stabilized supply chains.
During the reporting period, we noted a growing
number of countries that restricted cross-border55

Group management report
Risk and opportunities report

movement of capital and money. This can lead to production facilities located in one of the countries inquestion being cut off from their supply of raw materials, or sales organizations no longer able to be adequately supplied with finished products. This can also
jeopardize the debt servicing of cross-border financing.
There is also a risk that our suppliers’ liquidity situation could become strained and could, in the worstcase scenario, jeopardize the operations of some ofthem. Another increase in interest rates can also aggravate the financial situation of all parties.
Opportunities
In addition to risks, B. Braun regularly identifies andassesses opportunities for the company. Opportunities can generally arise from the advancement of ourcore medical products and integrated solutions or thelaunch of new products and services. Close dialog
with our customers allows us to continue swiftly seizing potential and opening up new business prospects
through innovation.
Opprtunities from our economic environment
Our statements on the future development of the Groupare based on the economic environment as described in
the forecast report. Should the health care economy
perform better than currently expected, our sales, earnings and financial position may exceed our forecasts.
The best possible health care for a patient requires
health data to be available and aggregated with ahigh degree of quality. This data is also the foundationof B. Braun’s innovative power and global competitiveness as a medical technology company. Germany’s
Health Data Usage Act will soon govern the use ofhealth data in Germany while also giving companies
in the health care industry the right to request theuse of this data.
Increased capacity enables us to share in the growing
demand for medical technology. New, automated production processes further improve our competitiveness. In addition, our comprehensive portfolio and our56Group management report
Risk and opportunities report

years of experience enable us to offer integrated solutions for our customers. Should this increase demand
more than expected, it could have a positive impact
on our sales and earnings as well as our cash flow.
Opportunities from our international presenceWith increasing protectionist measures in numerous
health care markets in mind, our international presence offers opportunities for locally manufactured
product portfolios. Numerous production sites alsomeans we can shorten transport routes, helping to
reduce our carbon footprint. B. Braun would also concretely benefit from the conclusion of additional free
trade agreements, especially in countries where wehave no local production. Improving business conditions in individual markets for international companies in the health care industry could sustainably
strengthen our sales and earnings.
Opportunities from our employees
We seek to motivate employees to continue to growand spend their career with the company. We invest
in targeted training and continuing education to keepknowledge in the company and increase it in the true
sense of Sharing Expertise. With regular talent andperformance reviews, we plan the succession of management positions over the long term.
We continuously work on production site models thatcan be swiftly adapted and also refine overall conditions for employees in those shift models. We also
would like to deploy personnel beyond individual locations with greater flexibility to head off production
spikes.
At the same time, B. Braun supports a work culture
characterized by trust, accountability and diversity.
We promote a leadership style that motivates, values
feedback and analyzes employee potential. At
B. Braun, we value different perspectives that allow us
to reach the best possible solution for our customers.
The successful implementation of various employeerelated initiatives and support from our workforce canalso improve our competitiveness and have a positive
impact on our sales, earnings and cash flow.

Opportunities from innovation and technology
Our growth strategy is based on developing innovative technology platforms, therapy concepts, processes, products and services. In close partnershipwith our customers and users, we are working on new
health care solutions that allow our customers to improve their care tasks and make them safer and easier.
Digital technologies, data analytics and artificial intelligence are swiftly changing health care. For customers, numerous business models open the door to optimizing individual patient care along a treatment pathway. At the same time, these technologies offer
B. Braun numerous opportunities to optimize and automate processes, and increase productivity at the sametime. This is based on data collected by B. Braun products through numerous channels, internally or from thecustomer. Afterwards this data is analyzed and processed into added value for various target groups.
B. Braun has begun its transition into a data-centriccompany and is expanding both its digital infrastructure as well as the skills and abilities of its employees
in handling data and analytics. A consistent focus ondata lays the groundwork for smart product, service
and process digitalization—including solutions fully
customized to the customer’s requirements. Digital
services and products (software) together with interconnected devices and smart single-use products(hardware) form integrated systems that enable data-driven, high quality and efficient health care, whichis the foundation of other innovative business models.
In addition to digitalization, other technologies such as
automation, new manufacturing technology or innovations in material sciences offer opportunities to improve patient treatment quality and make the customers’
processes and B. Braun’s more efficient and sustainable.
The use of new technologies has the potential to improve our sales and earnings. New possibilities fordata processing and analysis can affect our production and sales processes. If we are able to achieve aquicker time to market for our research and develoment projects than is currently expected, this too
could positively affect our sales and earnings.

Overall statement on the Group’s risk andopportunity situation
At present, there are no identifiable risks or dependencies that could threaten the viability of the B. Braun
Group for the foreseeable future. Given the current
global geopolitical flashpoints and developments in
the US, we believe that our net risk position has increased compared to the previous year. We were able
to work out and implement countermeasures to offset
potential negative developments for some risks, particularly with regard to energy shortages, especiallynatural gas from Russia.
Our extensive portfolio of products and services combined with our global presence also has a stabilizing
effect, so we remain unaware of any risks that could
jeopardize the company’s continued existence. However, the conflict in the Middle East, which escalated
into a war in October 2023, has a risk potential thatcannot yet be estimated.
Therefore, we must expect the current volatility topersist in 2024. Current foreign exchange market
trends and future interest trends remain difficult topredict, which means risks may arise here in the shortterm. A further increase in interest rates can exacerbate the financial situation for all stakeholders, evenjeopardizing functional supply chains. B. Braun also
faces the risk of being unable to pass on all inflation-related price increases to our customers.
An increase in cyber risks is likely. Advances in networking and digitalization, both on the user side as
well as in production, will provoke more cyberattacks.
B. Braun continues to refine its information security
and IT crisis management processes and measuresaccordingly. In addition to focusing on greater resilience we are also working on detecting anomalies
faster.
In general, we are convinced that the ever-present
market risks will not have a substantial negative impact on the B. Braun Group’s performance. Alongsidethese market risks are significant opportunities that
may help the company continue to succeed.

57

Group management report
OutlookGroup management report
Outlook

OUTLOOKin percent
4.2

2.0

The global medical technology market is predicted to
grow at an annual rate of 5.0 percent more than theoverall economy. High cost pressure and the tightskilled workforce situation in many countries will
force public, charitable and private health care entities to continue to optimize processes and look forother ways to increase efficiency. The continuing digitalization of processes and therapies remains a key
issue and the demand for corresponding solutions for
inpatient, ambulatory and in-home health care willcontinue to grow. AI will also play an increasingly important role here.

ic a
er
Am
t in
La

Af
r
M ic ai d an
dl d
eE t
as he
t

c
ifi
ac
-P
ia
As

No

rt

h

Am

Eu

er

ro

pe

ic a

0.5

rm

Global trends 3
The International Monetary Fund expects the global
economy’s growth to remain stable in 2024 at 3.1
percent. Central bank interest rate policy is seen as
one of the biggest factors for slowing growth by making investments more expensive. This is expected toreduce inflation from 6.9 to 5.8 percent, and to 2.6
percent in industrialized countries.

1.9

1.5

Ge

Expected economic environment

to detach financial incentives from health care, improve quality of treatment and reduce bureaucracy.
The reform will be complemented by a transparency
law aimed at publishing a transparency directory containing structural and performance data, as well as
the classification of hospitals according to levels ofcare. New rules promoting digitalization, such as electronic patient records and the integration of digital
health care applications, are now being implemented.
The federal government’s strategy to strengthen thepharmaceutical industry in Germany acknowledges
the industry’s importance to medical care and thecountry’s economic performance. This strategy includes plans to simplify clinical trials, promote pharmaceutical manufacturing in Germany and amend EU
public procurement law in favor of pharmaceuticals
manufactured in Europe.

Regional trends
More changes are expected in Germany’s health careindustry in 2024: hospital bankruptcies and the shortage of skilled workers will require additional government action. The planned hospital reform is intended

The groundwork for a digital health care economy
should also be laid in Europe in 2024 in the form of
the European Health Data Space (EHDS) to interconnect health data collected at the national level. A
European data space has the potential to improve ahealth care system’s care, research and infrastructure.
EU pharmaceutical legislation is also slated for fundamental reform, in order to facilitate innovation and

IMF: World Economic Outlook (January 2024) & Regional Outlooks (October–
November 2023); OECD: Economic Outlook (October 2023); BVMed: Ukraine War
Sanctions Package (07/10/2023), MedTech Market Presentation (11/13/2023);
European Commission: Overview of Sanctions (02/01/2024), European Health
Data Space (04/26/2023); Roland Berger: Hospital Study 2023 (10/28/2023);

Deloitte: Healthcare Trends (12/06/2023); Federal Ministry of Health: Digitalization in Health Care (2023); Medizin & Technik: Medical Technology for China(04/15/2021); GTAI (09/18/2023); Embassy of Finland in Brasilia: Healthcare Industry in Brazil (04/18/2023); ETHealthworld: Regulatory Affairs in India(04/27/2023).

3

58

better access to drugs. Economic sanctions on Russia
are not likely to be lifted soon, though there is nothing to indicate that medical devices will be included
in coming EU sanctions packages.

3.2

Global 3.1

an

The statements made here on economic trends andcompany performance are forward-looking. Our expectations contain all material events that were
known at the time this Group management report was
prepared that could impact the business performanceof the B. Braun Group. The actual events may varysignificantly, in both positive and negative respects.

Forecasted change in the gross domestic producty

Outlook

OUTLOOKIn the US, hospitals are expected to return to full capacity in 2024 or 2025 at the latest, which will likely
result in an increase in investments, especially inhealth care facilities, software, surgical instruments
and catheterization laboratory equipment.
Forecasts predict that the medical technology market
in Asia Pacific will remain strong in the coming years
and see an average annual growth rate of 7 percent.
This growth is primarily being driven by China, whose
government seeks to increase its global market shareof the medical technology sector to 25 percent by
2030 and achieve a local manufacturing rate forhigh-quality medical devices of 95 percent. India’s
government also has ambitious growth targets inmedical technology and plans to provide the industry
with dedicated support to improve access, affordability, quality and innovation in public health care.
The medical technology markets in Latin America andAfrica and the Middle East are growing by 5 to 7 percent per year. This is well above the growth level for
health care spending in, for example, Brazil, which isonly at 1.4 percent. As in Europe, the use of digitalsolutions is becoming increasingly subject to regulations in Brazil.
Business and earnings outlook
For the 2024 fiscal year, we expect sales to fall within the strategic target growth range of 5 to 7 percent
growth at constant exchange rates. Growth in thereporting currency will be lower due to the continued
strength of the euro and corresponding currency effects, primarily from the US dollar, the ruble and theArgentine peso. We believe that the price level for raw
materials, energy and logistics will remain at the current level and that personnel costs will continue torise. This will be largely offset by continued production efficiency measures as well as growth in profitable segments. We expect this to lead to an
improvement in profit contributions and an increasein profitability.
For the Hospital Care division, we predict growth atconstant exchange rates that will be slightly belowthat of the overall Group. We expect growth to be
driven primarily by IV sets and accessories, drug
preparation and peripheral safety IV catheters. We
will also strive for growth above market performancein regional anesthesia. With the high degree ofcustomer acceptance of our core medical productSpaceplus, we expect stronger sales of infusion pumps
and IV lines. We also expect growth in our pharmaceutical portfolio, for example, higher sales of our
ready-to-use medications and continued volume
growth in the US. We expect our CAPS business togradually recover in the coming years.
In the Aesculap division, we are forecasting strong
growth above the Group average for the 2024 fiscal
year. We expect significant growth momentum from
Asia. Especially in China, we expect a strong performance due to significant volume growth after wewere hit by the negative effects of altered tendering
procedures in the therapeutic areas of neurosurgery
and interventional vascular diagnostics and therapy
in 2023. We continue to see good sales opportunities
in the US and Germany, especially in neurosurgery,sterile containers and endoscopy. In Europe, growth
will be somewhat less due to the absence of a central
sterilization site.
For the Avitum division, we forecast sales growth
above the Group level, with continued strong perfor-

59Group management report
OutlookGroup management report
Outlook

OUTLOOK
mance from wound care, ostomy care and continencecare products, especially in Western Europe but also
in markets like China and Latin America. Sales in infection prevention will stabilize following one-off effects in the medical examination glove business in
2023. For infection prevention and control, the commissioning of the production line in Sempach is a key
milestone for future sales growth. Our dialysis provider business will continue to stabilize and make a positive profit contribution thanks to treatment numbers
continuing to rise along with some country-dependent increases in cost reimbursements. We expect further progress in acute dialysis products, primarily in
China and Western Europe. Improvement is expected
in China following a decline in volume in 2023.
We expect our interim profit without one-off effects
in a range of € 510 million to € 550 million (2023:
interim profit € 434.8 million). We forecast EBIT togrow to somewhere between € 390 million to € 430
million at constant exchange rates (2023: EBIT
€ 296.7 million). Profit before taxes is expected in arange of € 270 million to € 310 million (2023: profit
before taxes € 206.0 million). We forecast EBITDA togrow to somewhere between € 1,060 million to€ 1,110 million (2023: EBITDA € 1,019.4 million). This
corresponds to a target EBITDA margin of 12 percent.
These figures are largely based on mostly stable exchange rates and an interest rate at the same level as
the second half of 2023. We are aiming to increase
ROOA by more than one percentage point.
Whether our earnings goals are met depends on
how geopolitical tensions and their different effects
unfold over time. Achieving the intended profit goals
through internal efficiency measures and profitability
activities will also influence these targets as will theperformance in the US. Using active working capitalmanagement, we look to continue to optimize inven-60

tory coverage and DSO. For DSO specifically, we wantto keep it at a low level of 61 days (2023: 62 days),although we have observed difficulties with the payment behavior of our customers in some markets.
After increasing inventory in 2022, which had aneffect on 2023, we want to continue to work in 2024
on achieving our strategic goal of 16 weeks of coverage.
Expected financial position
B. Braun intends to continue its solid financial policyof recent years. We are striving for an equity ratio
above 45 percent for 2024. At the same time, we will
maintain our current conservative dividend policy. We
concluded no material refinancing in the 2023 fiscal
year; rather, we financed our investments and scheduled repayments from current cash flow and existinglines.

Overall statement on the outlook for the Group
Given the assumptions presented with regard to theperformance of the global economy and the healthcare industry, we anticipate positive sales and earnings development for B. Braun in 2024. With themeasures for increasing efficiency and structural optimization already initiated, we will counteract the
expected cost increases. Despite the indicated risks,
we continue to see growth potential beyond the 2024
fiscal year.

and integrated solutions, we have positioned ourselves well in the global health care industry. By consistently focusing on strengthening our innovative
power and increasing our earnings, we will continue
to hold our own even in a persistently volatile environment. We remain a true partner to our customers
who develops smart solutions and sets standards todrive advancements in health care. Together withmedical professionals, we will continue to protect andimprove the health of people around the world.
Melsungen, February 29, 2024

With our close customer contacts and innovations, wewill create new opportunities for implementing technology in health care. With our high-quality products

The Executive Board

The financing volume for long-term maturities will be€ 113 million for 2024 and a total of € 175 million in
the following year. The increase in market interest
rates caused by the amended monetary policy of numerous central banks will make refinancing more expensive for B. Braun due to the higher interest rate. If
geopolitical conflicts persist, they may further increase uncertainty in the capital markets, resulting ineven higher risk premiums.
Despite the rising costs and current risks associatedwith financing, we expect that we will be able to obtain necessary funding given our long-standing relationships with our banks and the sustained earning
power of B. Braun. With the Group-wide cash poolingsystem, we want to optimize financing within theGroup in the future, as well. Furthermore, we are reducing our need for financing through Group-wide
inventory and receivables management projects.

61Consolidated
financial statements
01 Consolidated statement of income
02 Consolidated statement of comprehensive income
03 Consolidated statement of financial position
04 Consolidated statement of changes in equity
05 Consolidated statement of cash flows
06 Notes to the consolidated financial statements
0 7 Independent auditor‘s report

The consolidated financial statements of B. Braun SE—
hereinafter also referred to as the B. Braun Group—asof December 31, 2023, have been prepared in compliance with section 315e (3) German Commercial Code
(HGB) according to the International Financial Reporting Standards (IFRS) applicable as of the reporting datepublished by the International Accounting Standards
Board (IASB), London, as well as the interpretations
issued by the International Financial Reporting Interpretations Committee (IFRIC) as stipulated by the EU,
and have been published in the online edition of theGerman Federal Gazette (Bundesanzeiger).

Consolidated financial statements
Consolidated statement of income and Consolidated statement of comprehensive income

Consolidated financial statements
Consolidated statement of financial position

Consolidated statement of income

Consolidated statement of financial position

Sales
Cost of goods sold
Gross profit
Selling expenses
General and administrative expenses
Research and development expenses
Interim profit
Other operating income
Other operating expenses
Net position of monetary items as per IAS 29
Operating profit
Profit from financial investments (equity method)
Financial income
Financial expenses
Net financial income
Other financial income
Profit before taxes
Income taxes
Consolidated net income
thereof attributable to:
B. Braun SE shareholders
Non-controlling interests
Earnings per share (in €) for B. Braun SE
shareholders in the fiscal year (diluted and basic)

Notes

2023
’000

2022
’000

1)
2)

8,754,984-5,432,585
3,322,399-1,947,701-455,291-484,608
434,799
416,061-554,123(-11,692)
296,737
911
10,267-120,485-110,218
18,534205,964-80,813125,151

8,499,846-5,268,647
3,231,199-1,940,570-419,964-541,246
329,419574,101-669,341(-7,389)
234,179
5,266
8,033-77,255-69,2228,469
178,692-36,467
142,225(112,068)(13,083)
125,151(118,928)(23,297)
142,225

0.14

0.15

3)
4)
5)
6)
6)
7)

8)
9)
10)

11)

Consolidated statement of comprehensive income
Consolidated net income
Items not reclassified to profit or loss
Revaluation of pension obligations
Income taxes
Changes in amount recognized in equity
Items potentially reclassified to profit or loss
Changes in fair value of securities
Income taxes
Changes in amount recognized in equity
Cash flow hedging instruments
Income taxes
Changes in amount recognized in equity
Changes due to currency translation
Income taxes
Changes in amount recognized in equity
Changes recognized directly in equity (after taxes)
Comprehensive income over the period
thereof attributable to:
B. Braun SE shareholders
Non-controlling interests

64

2023
’000

2022
’000

125,151

142,225-137,271
37,174-100,096

640,577-180,890
459,688-25,042-25,042
-695
-90
-785
-36,837-36,837-162,760-37,610

1,424
-670
754
4,605
124
4,730
111,801
111,801
576,972
719,198(-44,661)(625,301)(7,051)(93,897)

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment real estate holdings
Financial investments (equity method)
Other financial investments
thereof financial assets
Trade receivables
Other assets
thereof financial assets
Income tax receivables
Deferred tax assets
Current assets
Inventory
Trade receivables
Other assets
thereof financial assets
thereof financial assets held for sale				Income tax receivables
Cash and cash equivalents
Total assets
EquitySubscribed capital
Capital reserves and retained earnings
Effects of foreign currency translation
Equity attributable to B. Braun SE shareholders
Non-controlling interests
Total equity
Liabilities
Non-current liabilities
Provisions for pensions and similar commitments
Other provisions
Financial liabilities
Trade accounts payable
Other liabilities
thereof financial liabilities
Deferred tax liabilities
Current liabilities
Other provisions
Financial liabilities
Trade accounts payable
Other liabilities
thereof financial liabilities
thereof liabilities held for sale
Current income tax liabilities
Total liabilities
Total equity and liabilities

Notes

Dec. 31, 2023
’000

Dec. 31,2022’00014) 16)15) 16)
15)
17)
17)

667,302
5,388,568
6,808
72,95780,250(80,250)
23,63865,434(10,189)850
263,8636,569,670

729,106
5,520,595
6,953
75,569106,086(106,086)
24,42854,624(8,199)1,934
274,748
6,794,043

1,843,731
1,356,211
387,011(207,511)(7,387)110,196
105,8313,802,980
10,372,650

1,908,636
1,290,752
355,984(147,634)
103,682
113,494
3,772,548
10,566,591

800,000
3,511,165-181,150
4,130,015
572,132
4,702,147

800,000
3,618,550-137,791
4,280,759
558,946
4,839,705

25)
26)
27)
29)
29)

1,223,289
133,408
1,707,936
339
96,904(6,239)103,1103,264,986

1,052,818
131,061
1,644,305
29
82,486(4,584)
186,237
3,096,936

26)
27)
29)
29)

152,504
698,197584,592
919,445(344,091)(4,021)
50,7792,405,517
5,670,503
10,372,650

81,122899,265642,211956,730(368,358)
50,622
2,629,950
5,726,886
10,566,591

18)
19)

20)
18)
19)
-

21)

22)
23)

24)

65

Consolidated financial statements
Consolidated statement of changes in equity

Consolidated financial statements
Consolidated statement of changes in equity

Consolidated statement of changes in equity
See notes 22-24

Subscribed
capitalCapitalreserves

’000

’000

800,000

80,020

Profit distribution from B. Braun SE

00

Increase in subscribed capital

00Consolidated net income

0Changes in fair value of securities
Cash flow hedging instruments

Noncontrollinginterests‘000

Equity’000

Equityattributableto owners‘000

03,637,414

514,377

4,151,790

00-32,0000-32,000

0

0

0

0

0

0

0

118,928

23,297142,225

0

715

0

715

39

754

0

4,744

0

4,744

-14

4,730

411,81200411,81247,876459,6880

89,102089,102

22,699111,801

530,740

94,561

0625,301

93,897719,198

Retainedearnings

Other
reserves

Treasury
stock

’000

’000

2,975,370-217,978-32,000
00

118,928

0

0

0

0

Revaluation of pension obligations

00Changes due to currency translation00Comprehensive income over the period00Other changes

0050,0440050,044-49,327

717-123,417

04,280,759

558,947

4,839,705

Jan. 01, 2022

‘000

Changes recognized directly in equity (after taxes)

Dec. 31, 2022

800,000

80,0203,524,154Jan. 01, 2023

800,000

80,0203,524,154-123,417

04,280,759

558,947

4,839,705

Profit distribution from B. Braun SE00-32,00000-32,0000-32,000

Increase in subscribed capital

0

0

0

0

0

0

0

0

Consolidated net income

00

112,0680

0

112,068

13,083

125,151

Changes in fair value of securities

0

0

0

-23,539

0-23,539-1,503-25,042

Cash flow hedging instruments

0

0

0

-795

0

-795

10

-785

Revaluation of pension obligations

0

0-89,03700-89,037-11,060-100,097

Changes recognized directly in equity (after taxes)

Changes due to currency translation

0

0

0

-43,3580-43,358

6,521-36,837

Comprehensive income over the period0023,031-67,692

0-44,661

7,051-37,610

Other changes

00-74,08300-74,083

6,135-67,948

Dec. 31, 2023

800,000

80,0203,441,102-191,109

04,130,015

572,133

4,702,147

66

67

Consolidated financial statements
Consolidated statement of cash flows

Consolidated financial statements
Notes

Notes
Consolidated statement of cash flows

Notes
Notes

Operating profit
Net position of monetary items as per IAS 29
Income tax paid

2023
‘000

2022
‘000

296,737
11,692-108,396

234,179
7,389-132,345

Depreciation and amortization of property, plant and equipment,
and intangible assets (net of write-ups)

698,929

747,474

Change in non-current provisions
Interest received and other financial income
Interest paid and other financial expenditures
Other non-cash income and expenses

175,454-907-51,102-208,290-607,897
4,263-35,068
687,099

6,639

4,197

820,756909,291

10,130-144,660-250,981-138,139

Gain/loss on the disposal of property,
plant and equipment, and intangible or other assets
Gross cash flow

34)

Change in inventory
Change in receivables and other assets
Change in liabilities, current provisions
and other liabilities (excluding financial liabilities)

32,749198,690

718,975

718,861-519,854-31,357-16,463-549,017-6,627-37,316

Proceeds from sale of subsidiaries and holdings

45,597

4,986

Proceeds from sale of property, plant and equipment,
intangible assets and other financial assets

32,456

4,852

24,268-465,353

18,018-565,104

Free cash flow

253,622

153,757

Capital contributions
Dividends paid to B. Braun SE shareholders
Dividends paid to non-controlling interests
Deposits and repayments for profit-sharing rights
Additions to loans
Loan repayments
Cash flow from financing activities-1,271-32,000-19,091-15,590372,712-625,052-320,292

232-32,000-12,267
1,008
281,577-351,244-112,694

Change in cash and cash equivalents-66,670

41,063

Cash and cash equivalents at the start of the year
Exchange gains (losses) on cash and cash equivalents
Cash and cash equivalents at year end

113,493
59,008105,831

94,667-22,236
113,494

Cash flow from operating activities (net cash flow)

34)

Investments in property, plant, and equipment, and intangible assets
Investments in financial assets
Acquisitions of subsidiaries, net of cash acquired

Dividends and similar revenues received
Cash flow from investing activities

68

35)

36)

37)

General information
B. Braun SE is an international, family-owned company headquartered at Carl-Braun-Str. 1, 34212 Melsungen, Federal Republic of Germany. B. Braun SE isregistered in the commercial register of the Fritzlar
District Court (HR B 12403).
B. Braun Holding GmbH & Co. KG in Melsungen is theparent company of B. Braun SE as defined in section
290 (1) HGB and is required to produce consolidated
financial statements that include the consolidated financial statements of B. Braun SE . The consolidated
financial statements are submitted to the online edition of the German Federal Gazette (Bundesanzeiger).
B. Braun SE and its subsidiaries manufacture, market,
and sell products and services for basic medical care,intensive care units, anesthesia and emergency care,
extracorporeal blood treatment and core surgical procedures. The major manufacturing facilities are located in the EU, Switzerland, the United States, Malaysia,
Vietnam and Brazil. The company distributes its products via a worldwide network of subsidiaries and associated companies.
The Executive Board of B. Braun SE approved the consolidated financial statements for submission to thecompany’s Supervisory Board on February 29, 2024.
The Audit Committee of the Supervisory Board plans
to discuss the consolidated financial statements at its

meeting on March 07, 2024 and the Supervisory
Board shall approve the consolidated financial statements at its meeting on March 19, 2024.
The consolidated financial statements have been prepared based on historical costs, except for financial
assets/liabilities including derivative financial instruments measured at fair value through profit and loss.
Unless otherwise indicated, the accounting policies
were used consistently for all periods referred to inthis report.
In the statement of financial position, a distinction ismade between current and non-current assets andliabilities. The statement of income is presented using
the cost-of-sales method. Using this format, net sales
are compared to expenses incurred to generate thesesales, classified by the expense categories cost of
goods sold, selling, general and administrative, andresearch and development. To improve the informational content of the consolidated statement of financial position and consolidated statement of income,further details on individual entries have been provided in the notes to the consolidated financial statements. The consolidated financial statements are ineuros. Unless otherwise stated, all figures are in millions of euros (€ million). The figures in the consolidated financial statements have been rounded, which
may result in rounding differences.
The financial statements of B. Braun SE and its subsidiaries included in the consolidated financial statements have been prepared using standardized Groupaccounting policies.

69Consolidated financial statements
Notes

Consolidated financial statements
Notes

New and amended International Financial Reporting Standards and Interpretations whose application is
mandatory for the first time for fiscal years beginning on or after January 01, 2023 (IAS 8.28)

Adjustments as per IAS 8
An adjustment was made to the accounting policies
on deferred tax in preparation for the consolidated
financial statements for fiscal year 2023.

Affected standards

Background

Adopted into
EU law(endorsement)

Expected effects
on the B. BraunGroup

Applicable as of Jan. 01, 2023
IAS 1 IFRS
Practice
Statement 2

Disclosure ofaccounting policies

Clarification that all material accounting policies
must be disclosed. IFRS Practice Statement 2 offers
guidance on applying the concept of materiality todisclosures.

Yes, onMar. 02, 2022

No material effect

IAS 8

Changes in accounting
estimates

Clarification on how to differentiate betweenchanges in accounting policies and accounting
estimates.

Yes, onMar. 02, 2022

No material effect

IAS 12

Deferred tax ontransactions

Requirement that companies recognize deferred
tax on transactions resulting in taxable temporary
differences on initial recognition.

Yes, onAug. 11, 2022

No material effect(see “Adjustments
as per IAS 8”)IFRS 17

Insurance contracts

This standard supersedes IFRS 4 and contains threecore principles for reporting insurance contracts andreinsurance contracts.

Yes, onNov. 19, 2021

No material effect

New and amended International Financial Reporting Standards and Interpretations that have alreadybeen published, but whose application is not yet mandatory for companies whose fiscal year ends on
December 31, 2023 (IAS 8.30) and whose adoption by the EU is partially still pending
Affected standards

Background

Adopted into
EU law(endorsement)

Expected effects
on the B. BraunGroup

Clarification that the classification of liabilities as
current or non-current should be based on laws inforce at the end of the reporting period.

Yes, onDec. 19, 2023

Effects still under
examination

Pending

Effects still under
examination

Applicable as of Jan. 01, 2024
IAS 1

Classification of liabilities

IAS 7
IFRS 7

Reverse factoringarrangements

Requirement to disclose information about reverse
factoring arrangements in the notes.

IAS 12

International tax reform:
Pillar Two model rules

Temporary exception to the requirement to recognize Yes, onand disclose information about deferred tax assets and Nov. 08, 2023
liabilities related to Pillar Two income taxes.

Effects still under
examination (seeNote 10)IFRS 16

Amendment: leaseliabilities in a sale andleaseback transaction

The amendment requires that lease liabilities be
subsequently measured in a way that does not recognize any amount of the gain or loss that relates
to the right of use it retains.

Yes, onNov. 20, 2023

Effects still under
examination

Addendum on how to proceed if a currency is notexchangeable and what disclosures to provide in theNotes.

Pending

Before, in line with IAS 12.15 and IAS 12.24, deferredtaxes were not recognized if transactions resulting intaxable temporary differences of the same amountarose from a transaction (initial recognition exemption).
Since IAS 12 has since been amended to restrict theinitial recognition exemption, accounting of deferredtaxes was changed in the 2023 fiscal year so thatdeferred tax assets (if recoverable) and deferred tax

Consolidated statement of financial position Jan. 01, 2022

Deferred tax assets
Non-current assets
Total assets
Capital reserves and retained earnings
Equity attributable to B. Braun SE shareholders
Non-controlling interests
Total equity
Deferred tax liabilities
Non-current liabilities
Total liabilities
Total equity and liabilities
Consolidated statement of financial position Dec. 31, 2022

Applicable as of Jan. 01, 2025
IAS 21Lack of exchangeability

Effects still under
examination

Deferred tax assets
Non-current assets
Total assets
Capital reserves and retained earnings
Equity attributable to B. Braun SE shareholders
Non-controlling interests
Total equity
Deferred tax liabilities
Non-current liabilities
Total liabilities
Total equity and liabilities

70

liabilities are recognized when a right-of-use asset
and a lease liability are recognized.
This change in accounting was made retroactively andhas effects on the consolidated statement of income,losses and gains recognized in equity, and the statement of financial position. For retroactively appliedchanges in accounting, IAS 8 requires the disclosureof the opening balance of the earliest comparison period, therefore, the balance as of January 01, 2022 isdisclosed. The adjustments made to the affected itemsin the consolidated statement of financial position asof January 01, 2022 / December 31, 2022 as well as
the adjustments in the consolidated statement of income and the consolidated statement of comprehensive income for 2022 are presented as follows:

PublishedamountJan. 01, 2022
‘000
361,980
6,887,744
10,206,196

Adjustment
‘000
2,367
2,367
2,367

Adjusted
amountJan. 01, 2022
‘000
364,347
6,890,111
10,208,563

3,070,655
3,643,763
514,600
4,158,363
116,154
3,390,269
6,047,833
10,206,196-6,350-6,350-222-6,572
8,939
8,939
8,939
2,367

3,064,305
3,637,413
514,378
4,151,791
125,0933,399,208
6,056,772
10,208,563

PublishedamountDec. 31, 2022
‘000
272,969
6,792,264
10,564,812

Adjustment
‘000
1,779
1,779
1,779

Adjusted
amountDec. 31, 2022
‘000
274,748
6,794,043
10,566,591

3,626,071
4,288,280
559,671
4,847,951
176,2123,086,911
5,716,861
10,564,812-7,521-7,521-725-8,246
10,025
10,025
10,025
1,779

3,618,550
4,280,759
558,946
4,839,705
186,236
3,096,936
5,726,886
10,566,591

71

Consolidated financial statements
Notes

Consolidated statement of income 2022

Income taxes
Consolidated net income
thereof attributable to:
B. Braun SE shareholders
Non-controlling interests
Consolidated statement of comprehensive income 2022

Consolidated net income
Comprehensive income over the period
thereof attributable to:
B. Braun SE shareholders
Non-controlling interests

If deferred taxes would not have been recognized onright-of-use assets and leasing liabilities in fiscal year
2023, deferred tax assets of € 2.0 million, deferred
tax liabilities of € 2.9 million and income tax of € 7.4
million would not have been incurred.
Critical assumptions and estimates
for accounting policies
The preparation of financial statements in accordancewith IFRS requires management to make assumptions
and estimates that have an effect on the reported
amounts and their related statements. While management makes these estimates to the best of its knowledge and abilities based on current events andmeasures, there is a possibility that actual results may
differ. Estimates are necessary in particular when:- A ssessing the need for and the amount of writedowns and other value adjustments.
- Measuring pension obligations.
- Recognizing and measuring provisions.
- Establishing inventory write-downs.
- Evaluating the probability of realizing deferred tax
assets.
- C alculating the value in use of cash-generating
units (CGU) for impairment testing.

72

Consolidated financial statements
Notes

PublishedamountDec. 31, 2022
‘000
-34,793
143,899

Adjustment‘000-1,674-1,674

Adjusted
amountDec. 31, 2022
‘000
-36,467
142,225(120,099)(23,800)(-1,171)(-503)(118,928)(23,297)

PublishedamountDec. 31, 2022
‘000
143,899
720,871

Adjustment‘000-1,674-1,674

Adjusted
amountDec. 31, 2022
‘000
142,225
719,197(626,472)(94,399)(-1,171)(-503)(625,301)(93,896)

The Group’s management determines the expected
useful life of intangible assets and property, plant andequipment as well as their depreciation or amortization based on estimates. These assumptions canchange materially, for example, as a result of technological innovations or changes in the competitive environment. Should their actual useful life be shorter
than the estimate, management adjusts the amount ofdepreciation or amortization. Assets that are technologically outdated or no longer usable under the current business strategy are fully or partially written off.
The present value of pension obligations depends ona number of factors, which are based on actuarial
assumptions. The assumptions used for the calculation of net pension expenses (and income) include theapplicable discount rate for pension obligations. Anychange in such assumptions will have an effect on the
carrying amount of the pension provisions. Obligations from defined benefit pension plans, as well as
pension expenses for the following year, are determined based on the parameters outlined under Note 25.
The method of determining interest rates is unchanged from the year before. An interest yield curveis derived from the analysis of corporate bonds. The

discount rate is calculated by measuring a sample
cash flow comparable to the circumstances of
B. Braun using the interest yield curve and deriving anequivalent standard discount rate.

The change in the number of Group companies as of December 31, 2023 compared to December 31, 2022 isshown below:

The recognition and measurement of other provisions
is based on estimates regarding the probability of afuture outflow of resources, as well as experience andknown circumstances as of the reporting date. The
actual liability may differ from the amounts of theprovisions established.

Included as of Dec. 31 of previous year

2023

2022

290

299

Companies included for the first time

20Company consolidations discontinued-3-5

Corporate mergers

-3

-4

286

290

Included as of Dec. 31 of reporting year

The estimate of inventory write-downs is based on
the projected net realizable value (the estimated selling price, less the estimated cost of completion andthe estimated selling expenses). Actual sales and actual costs incurred may differ from these estimates.

Discontinued company consolidations had no material impact on the statement of financial position andstatement of income in fiscal year 2023, with the exception of the transfer of the shares of a non-core
subsidiary to B. Braun Holding GmbH & Co. KG, resulting in a profit of € 17.8 million that was reported asother operating income.

Deferred tax assets are only recognized to the extent
that it is probable that taxable profit will be available in
the future. The actual taxable profits in future periods
may differ from the estimates made on the date suchdeferred tax assets are capitalized.

Initial consolidations had no material impact on thestatement of income or statement of financial position in fiscal year 2023.

Goodwill is tested for impairment annually based on a
five-year forecast using projections of specific annual
growth rates for the subsequent period. An increase or
decrease in the projected annual growth rates would alter the estimated fair value of a given cash-generating
unit.
Scope of consolidation
In addition to B. Braun SE, the consolidated financial
statements include 71 domestic and 215 foreign subsidiaries for which B. Braun SE is exposed to variable returns
and has the ability to influence them.
Subsidiaries are included in the consolidated financial
statements effective on the day control is assumed by
the Group. Consolidation is discontinued as of the day on
which such control ends.

Holdings in one joint venture and 18 associated companies are recognized in the consolidated financial
statements as of the reporting date. Two associatedcompanies were not measured using the equity method on materiality grounds.
REVIUM Rückversicherung AG is included in the consolidated financial statements of B. Braun SE as awholly-owned subsidiary. The only business purposeof REVIUM Rückversicherung AG is to arrange reinsurance with companies (direct insurers) with which
B. Braun SE has taken out insurance contracts. It does
not arrange any insurance contracts with third parties
that extend beyond this and does not cover risks outside of the B. Braun Group. Due to its narrowly definedbusiness purpose, REVIUM Rückversicherung AG has
no material impact on the net assets, financial position, and earnings situation of the B. Braun Group asa whole.

As part of an asset-backed securities program, tradereceivables for individual Group companies are assigned to a structured unit. This structured unit is notconsolidated in the B. Braun SE consolidated financial
statements. Please see Note 18 for further information.

73

Consolidated financial statements
Notes

The complete list of shareholdings belonging to theGroup and to B. Braun SE is provided in the Notes tothe consolidated financial statements and is publishedin the German Federal Gazette (Bundesanzeiger).
The following companies included in the B. Braun SE
consolidated financial statements exercise facilitations set forth in sections 264 (b) and/or 264 (3) HGB
and are thus exempted from having to compile notes
and a management report or publish financial statements:
Aesculap AG, Tuttlingen,Aesculap Akademie GmbH, Tuttlingen,Aesculap Holding GmbH, Melsungen,
AESCULAP INTERNATIONAL GMBH, Tuttlingen,
ALMO-Erzeugnisse Erwin Busch GmbH, Bad Arolsen,
B. Braun Ambulantes Herzzentrum Kassel MVZ GmbH,
Kassel,B. Braun Avitum AG, Melsungen,
B. Braun Avitum Saxonia GmbH, Radeberg,
B. Braun Deutschland GmbH & Co. KG, Melsungen,
B. Braun Facility Services GmbH & Co. KG, Melsungen,
B. Braun Gesundheitsservice GmbH, Hürth,B. Braun Invest GmbH, Melsungen,
B. Braun Medical AG, Melsungen,
B. Braun Medizinisches Versorgungszentrum Baunatal
GmbH, Baunatal,
B. Braun Melsungen AG, Melsungen,
B. Braun Miethke GmbH & Co. KG, Potsdam,
B. Braun New Ventures GmbH, Freiburg im Breisgau,
B. Braun Nordamerika Verwaltungsgesellschaft mbH,
Melsungen,
B. Braun Surgical GmbH, Melsungen,
B. Braun Vet Care GmbH, Tuttlingen,
B. Braun via medis GmbH, Melsungen,
BBM Group Insurance Broker GmbH, Melsungen,
Bibliomed Medizinische Verlagsgesellschaft mbH
Melsungen,
CeCaVa GmbH & Co. KG, Tübingen,
DTZ Dialyse Trainings-Zentren GmbH, Nürnberg,
DTZ Oldenburg i.H. MVZ GmbH, Oldenburg in
Holstein,
DTZ Sigmaringen MVZ GmbH, Sigmaringen,
DTZ Waldshut MVZ GmbH, Waldshut-Tiengen,
GELIMER Verwaltungsgesellschaft mbH & Co. Vermietungs KG, Pullach im Isartal,
INKO Internationale Handelskontor GmbH, Roth,Invitec GmbH & Co. KG, Essen,

74

Consolidated financial statements
Notes

Medizinisches Versorgungszentrum ViaMedis Remscheid GmbH, Remscheid,
MVZ Hagenow GmbH, Hagenow,
MVZ Ludwigslust GmbH, Ludwigslust,
MVZ Medizinisches Versorgungszentrum Saarbrücken
GmbH, Saarbrücken,
MVZ Parchim GmbH, Parchim,
MVZ Schwerin Ost GmbH, Schwerin,
MVZ Schwerin West GmbH, Schwerin,
Nierenzentrum Bad Kissingen MVZ GmbH, Bad Kissingen,
NUTRICHEM DIÄT + PHARMA GMBH, Roth,Paul Müller Technische Produkte GmbH, Melsungen,
PPC Projekt-Planung & Consulting GmbH, Melsungen,
SteriLog GmbH, Tuttlingen,via medis Medizinisches Versorgungszentrum Südharz
GmbH, Herzberg am Harz,
via medis Nierenzentrum Bad Neustadt MVZ GmbH,
Bad Neustadt an der Saale,
via medis Nierenzentrum Braunschweig MVZ GmbH,
Braunschweig,
via medis Nierenzentrum Braunschweig-Mitte MVZ
GmbH, Braunschweig,
via medis Nierenzentrum Bremerhaven MVZ GmbH,
Bremerhaven,via medis Nierenzentrum Bremerhaven-Speckenbüttel
MVZ GmbH, Bremerhaven-Speckenbüttel,
via medis Nierenzentrum Dresden MVZ GmbH, Dresden,
via medis Nierenzentrum Dudweiler MVZ GmbH, Saarbrücken-Dudweiler,
via medis Nierenzentrum Neu-Ulm MVZ GmbH, NeuUlm,
via medis Nierenzentrum Oldenburg MVZ GmbH, Oldenburg,
via medis Nierenzentrum Riesa MVZ GmbH, Riesa,
via medis Nierenzentrum Südpfalz MVZ GmbH, Landau in der Pfalz,
via medis Nierenzentrum Suhl MVZ GmbH, Suhl,
via medis Nierenzentrum Wolfenbüttel MVZ GmbH,
Wolfenbüttel,
ViaMedis Nierenzentrum Gifhorn MVZ GmbH, Gifhorn.
The companies listed above exercise their right to the
exemptions.
Principles of Consolidationa) Subsidiaries
Subsidiaries, that means, corporations that are controlled by B. Braun SE, are included in the scope of

consolidation. B. Braun SE controls an entity when it
is exposed to variable returns from its involvementwith the investee, has entitlements to said returns
and has the ability to affect those returns through its
power over the investee.
Subsidiaries are initially consolidated on the first day
on which B. Braun SE assumes the right of disposal of
the acquired company; they are excluded from consolidation once B. Braun SE forfeits such control.
Right of disposal occurs when B. Braun SE has theability to direct the relevant activities of the investee
because it possesses the majority of the voting rights
or other contractual rights. The acquisition of subsidiaries is recognized using the purchase method. The
cost of acquiring a subsidiary is calculated based on
payments of cash and cash equivalents, together withthe fair value of assets transferred, shares issued,
and/or liabilities acquired when initial control isgained. Acquisition-related costs for a business combination are expensed. Conditional purchase pricecomponents are recognized at fair value on the dateof acquisition. Subsequent changes in the fair valueof the contingent purchase price liability are recognized in profit or loss or in other comprehensive income. Acquisition costs that exceed the proportionate
acquired share of the fair value of the subsidiary’s net
assets are recognized as goodwill.
Assets, debts and contingent liabilities identifiable
upon a merger of companies are valued on initial consolidation at the fair values attributable to them, regardless of the size of any non-controlling interests.
For each company acquisition, whether the non-controlling interests in the company acquired are recognized at fair value or using the proportionate share of
net assets of the acquired company is determined on
an individual basis. The option to recognize non-controlling interests at fair value is currently not exercised. Therefore, non-controlling interests are recognized at their proportionate share of net assets
and no goodwill is recognized for non-controlling interests.
Goodwill generated by the acquisition of non-controlling interests in fully consolidated companies isoffset against retained earnings. Where assets andliabilities are measured at fair value for the gradualacquisition of companies fully consolidated for the
first time, the revaluation of the “old” tranches is recognized through profit or loss.

Intercompany receivables and payables as well as expenditures and income are offset against each other.
Unrealized gains on transactions between companies
within the Group are eliminated in full; unrealized
losses are eliminated insofar as the resulting costs ofacquisition or manufacture do not exceed the recoverable amount of the underlying asset. The recoverable amount is the higher of an asset’s fair value lesscosts to sell or its value in use.
Subsidiary companies’ accounting policies are, where
necessary, adapted to those used to produce the consolidated financial statements.
b) Associated companies
Associated companies are companies over which theGroup has significant influence but no control, generally accompanied by a holding of 20 to 50 percent of
the voting rights. Investments in associated companies are accounted for using the equity method andare initially recognized at cost. The Group’s investment in associated companies includes goodwill identified on acquisition (net of any accumulated
impairments).
The Group’s share of associated companies’ post-acquisition profits or losses is recognized in the statement of income, and its share of post-acquisitionchanges in retained earnings is recognized in theGroup’s retained earnings. The cumulative post-acquisition changes are adjusted against the carrying
amount of the investment. When the Group’s share oflosses in an associated company equals or exceeds its
interest in the associated company, including any other unsecured receivables, the Group does not recognize further losses unless it has incurred obligations
or made payments on behalf of the associated company.
Unrealized gains from transactions between theGroup and its associated companies are, where material, eliminated to the extent of the Group’s share in
the associate. Unrealized losses are also eliminatedunless the transaction provides evidence of an impairment of the transferred asset. Accounting policies ofassociated companies were adjusted, where necessary, to align them with the policies of the Group.
c) Joint agreements
Investments in joint agreements are classified as either a joint operation or a joint venture. B. Braun SE’s

75

Consolidated financial statements
Notes

joint agreements constitute joint ventures. These areincluded in the consolidated financial statements using the equity method. The shares are initially recognized at cost and are subsequently updated in orderto reflect the Group’s share in the profits and losses
in other comprehensive income. When the Group’s
share of losses in a joint venture equals or exceeds its
interest in this company, including any other unsecured receivables, the Group does not recognize further losses unless it has incurred obligations or madepayments on behalf of the joint venture. Unrealized
gains arising from transactions with joint ventures are
eliminated in the amount equal to the Group’s share.
Unrealized losses are also eliminated unless the transferred assets are impaired.
d) Owners of non-controlling interests
Transactions with owners of non-controlling interests
are treated in the same way as transactions with parties within the Group. Sales of shares to owners of
non-controlling interests result in gains or losses being recognized in the consolidated financial statements. Conversely, purchases of shares from owners
of non-controlling interests result in the recognitionof goodwill equivalent to the difference between thepurchase price and the proportional carrying amountof the subsidiary’s net assets.
Foreign currency translationa) Functional and reporting currency
Items included in the financial statements of each of
the Group’s subsidiaries are stated using the currencyof the primary economic environment in which thecompany operates (functional currency).
The consolidated financial statements are stated ineuros as this is the Group’s functional and reporting
currency.
b) Transactions and balances
Foreign currency transactions are translated into thefunctional currency using the prevailing exchange
rate on the date of the transaction. Foreign exchange
expenses and income resulting from the settlement ofsuch transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rate are recognized in thestatement of income.

76

Consolidated financial statements
Notes

Translation differences on monetary items where fairvalue changes are directly recognized in equity arereported as part of the gain or loss from fair value
measurement. On the other hand, translation differences on non-monetary items where fair value changes are directly recognized in equity are included in therevaluation reserve in equity.
c) Subsidiaries
All items in the statements of income and statementsof financial position of all Group subsidiaries that are
in a currency other than the Group’s reporting currency are translated into the reporting currency as follows:- A ssets and liabilities are translated at the closing
rate on the reporting date.
- Gains and losses are translated at average exchange
rates.
- All resulting exchange differences are recognized asa separate component of equity (effects of foreign
currency translation).
Goodwill and fair value adjustments arising from theacquisition of foreign companies are treated as assets
and liabilities of the foreign company and translated
at the closing rate.
Upon the sale of a foreign business, currency differences formerly recognized in equity are recorded in
the statement of income as gains or losses on disposal.
d) Hyperinflation
Due to the current inflation trends in Argentina, Turkey and Ghana, the subsidiaries of the B. Braun Group
located there with the Argentine peso, Turkish lira andGhanaian cedi, respectively, as their functional currency must apply the accounting standard IAS 29 –Financial Reporting in Hyperinflationary Economies.
This standard was applied for the first time in thefiscal year for the subsidiaries in Ghana, though it had
no material impact on the Group. As part of an initial
application, the carrying value of non-monetary assets and liabilities must be recognized in equity using
a general price index. The application is retroactive,
as though the economies have always been hyperinflationary. The debtor’s gain or creditor’s loss resulting from the adjustment of non-monetary assets andliabilities as well as equity to reflect the price index isreported in the statement of income as other operating income or expenses. After the statement of financial position and statement of income are adjusted for
hyperinflation, they are converted to the reporting
currency as of the reporting date.

In Argentina, a general consumer price index from the
National Institute of Statistics and Census of Argentina (indec, Instituto Nacional de Estadística y Censos)
was applied, which was 3,533.19 on December 31,
2023 (previous year: 1,134.32). For Turkey, a general
consumer price index was also applied from the Turkish Statistical Institute, which was 1,859.38 on December 31, 2023 (previous year: 1,128.45).

Comparison of selected currencies
Closing mid-rate on reporting date
ISO-Code

Average annual rate

Dec. 31, 2023

Dec. 31, 2022

+ - in percent

2023

2022

+ - in percent

1.108

1.068

3.8

1.082

1.054

2.6

1 EUR = USD
1 EUR = GBP

0.869

0.887

-2.0

0.870

0.853

2.0

1 EUR = CHF

0.927

0.985

-5.9

0.972

1.005

-3.4

1 EUR = MYR

5.083

4.703

8.1

4.931

4.630

6.5

1 EUR = JPY

156.810140.68011.5

151.968

138.058

10.1

Accounting policies
Sales
Sales from customer contracts are recognized basedon a five-stage framework model in which consideration is expected for the performance obligations
assumed, that means, the transfer of goods/renderingof services. This comprises the following:- Identification of the contract with a customer.
- Identification of the discrete performanceobligations in the contract.
- Determination of the transaction price.
- Allocation of the transaction price to theperformance obligations in the contract.
- Recognition of sales upon fulfillment of theperformance obligations by the Group.
The application of this model depends on the individual circumstances in the contract with a customer andrequires discretionary decisions. The transaction priceis the consideration the Group expects to receive fromthe customer for the transfer of goods or the renderingof services. In cases where a contract contains elements with a variable consideration (for example, fromdeductions, rebates, discounts, bonuses, reimbursements), the amount of the variable consideration theGroup expects to receive under the contract is estimated. Variable amounts are only included in the transaction price to the extent it is considered very likely thatthe subsequent loss of uncertainty with regard to theamount of these variable amounts does not lead to a
substantial change in sales. If a contract comprises
multiple performance obligations, the transaction priceis allocated to the contractual performance obligations
based on the individual sale prices. Deductions in priceare also allocated based on the relative individual saleprices. If the contract includes a significant financial
agreement, the transaction price is adjusted by the fairvalue of the money unless the period between the rendering of the service and payment by the customer islikely to be less than 12 months. Sales are recognizedwhen control, that means, the ability to benefit from therendered service and to determine further use, is transferred. This can occur either at a specific point in timeor over a period of time. Sales are recognized over a
period of time when one of the following criteria is met:
- T he company provides a good or service and thecustomer obtains and benefits from the renderedgood or service.
- With its good or service, the company produces orenhances an asset over which the customer has
control while it is being produced or enhanced.

77

Consolidated financial statements
Notes- With its good or service, the company produces anasset that cannot otherwise be used by the company; in the process, the company has a pecuniary
claim for the services hitherto rendered and canalso expect the remainder of the contract to be performed as stipulated.
If the performance obligation is not fulfilled over a
period of time, it is fulfilled at a specific point in time.
The following factors are used to determine the point
at which control is transferred:- The Group presently owns the right to payment for
the asset.
- The customer has legal ownership of the asset.
- The company has physically transferred (that means,possession of) the asset.
- The principal risks and opportunities arising frompossession of the asset lie with the customer.
- The customer has accepted the asset.
Intangible assetsa) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets
and liabilities of the acquired company on the date of
the acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in the carrying
amount for investments in affiliates. Goodwill is tested for impairment at least once a year and is carriedat cost less accumulated impairment losses. Writedowns of goodwill are reported under other operating
expenses. Write-ups in value are not permitted. Gains
and losses on the sale of companies include the carrying amount of the goodwill relating to the company
sold.

Consolidated financial statements
Notes

where it is regarded as likely that the project will becommercially successful, technically feasible and thecosts can be reliably measured. Other development
costs that do not meet these criteria are expensed asthey occur. Development costs that have previously
been expensed are not capitalized in subsequent
years. Capitalized development costs are shown asinternally created intangible assets. Please see c) below regarding the useful life, amortization method,
and review of residual carrying amounts.
c) Other intangible assets
Acquired intangible assets are recognized at acquisition cost. Internally developed intangible assets where
future economic benefit is likely to flow to the Groupand the costs of the asset can be reliably measured
are recognized at the cost incurred during the development phase. This includes all costs directly related
to the development process, as well as appropriate
portions of relevant overhead costs. Intangible assets
with finite useful lives are amortized on a straightline method over a period of four to eight years. The
defined benefit amortization method is used for reasonable exceptions.
Residual carrying amounts and expected useful lives
are reviewed at each reporting date and adjusted if
necessary.
A write-down is taken at the reporting date if therecoverable amount of an intangible asset falls below
its carrying amount.
The write-downs of other intangible assets are recognized in the functional areas that are using the respective asset. Write-ups to a maximum of theamortized acquisition or manufacturing cost are
shown under other operating income.

b) Development costs
The B. Braun Group invests a significant portion of its
financial assets in research and development. In addition to internal research and development activities,
the Group maintains numerous cooperative relationships with third parties.

Intangible assets with indefinite useful lives, if present, are tested for impairment at least once a year.
Besides goodwill, the Group did not own any material
intangible assets with indefinite useful lives in thereporting periods presented.

Development expenses are defined as costs related toapplying research findings or specialized knowledge
for production planning and the manufacturing process before production or use has commenced. Development expenses are capitalized as intangible assets

Impairment of non-financial assets
At each reporting date, the carrying amounts of intangible assets as well as property, plant and equipment are evaluated for indications of impairment.
Where there is such an indication, an impairment test78

is conducted by comparing the carrying amount of
the asset in question with its recoverable amount. The
recoverable amount is the higher of an asset’s fairvalue less costs to sell or its value in use (net present
value of expected free cash flows). The test can be
conducted for a cash-generating unit (CGU) where
the recoverable amount cannot be determined because the asset does not generate cash inflows thatare largely independent of those from other assets. If
an asset’s recoverable amount is less than its carrying
amount, an impairment is recognized through profit
and loss. This impairment can be reversed throughprofit and loss at a later point in time if the recoverable amount of the asset is later found to be higher.
However, the increased carrying amount due to reversal may not be higher than what it would have been
if the impairment had not been recognized.
Property, plant and equipment
Tangible assets that are utilized during the ordinary
course of business for more than one year are recognized at their acquisition or manufacturing cost lessdepreciation using the straight-line method. The manufacturing costs include all costs directly related tothe manufacturing process and appropriate portionsof relevant overhead costs. Scheduled depreciation ofproperty, plant and equipment is based on thestraight-line method, in which the cost will be recognized over the estimated useful life until the residual
value is reached. The useful lives applied correspondto the expected useful lives within the Group.
The following useful lives are the basis for depreciation of property, plant and equipment:
Buildings

25 – 50 years

Technical plants and machinery*

5 – 20 years

VehiclesOperating and office equipment

6 years
4 – 20 years*1-shift operation

Land is not depreciated. Property rights are amortizedover the useful life of that property.
Acquisition and manufacturing costs that are incurred
at a later point are recognized as part of the asset or
as a separate asset only when it is likely that the future
economic benefits associated with the asset will flow
to the Group and that the cost of the asset can be re-liably measured. All repairs and maintenance are reported as expenses in the statement of income of the
fiscal year in which they occur.
Residual carrying amounts and expected useful lives
are reviewed at each reporting date and adjusted if
necessary.
A write-down is taken at the reporting date if the recoverable amount of a piece of property, plant orequipment falls below its carrying amount.
Depreciation of property, plant and equipment is recognized in the functional areas using the asset. Writeups to a maximum of the amortized acquisition or
manufacturing cost are shown under other operating
income. Gains and losses from disposals are recognizedin the statement of income.
Government grants are recognized at fair value if receipt of the grant and the Group compliance with any
conditions associated with the grant are highly likely.
Outside borrowing costs directly attributable to theacquisition, construction or development of a qualifying asset are capitalized as part of the asset’s acquisition or manufacturing cost.
Investment real estate is held for the purpose of longterm rental income and is not used by the Group itself.
It is measured at amortized acquisition or manufacturing cost less depreciation using the straight-line method. Useful life is 25–50 years. Fair value is calculated
based on several comparable properties.
LeasesAssets and liabilities from leases are measured at present value when first recognized. Leasing liabilities include the present value of the following lease payments:- Fixed payments, including de facto fixed payments
less any leasing incentives.
- Variable lease payments linked to an index or (interest) rate, initially valued with the index or (interest)
rate on the provision date.
- E xpected payments from the utilization of residual
value guarantees.
- The exercise price of a purchase option whose exercising is deemed reasonably certain.

79

Consolidated financial statements
Notes

Consolidated financial statements
Notes- Penalties related to the termination of a lease provided the exercising of the termination option is deemed
reasonably certain.
- Lease payments based on utilization of extension options that is deemed reasonably certain.

agreement as a lease agreement. Payments for shortterm leases of up to 12 months and leases for low-value assets up to US$ 5,000 are recorded in the statementof income. This also applies to variable lease payments
not linked to an index or (interest) rate.

Lease payments are discounted at the lessee’s incremental borrowing rate since the implicit interest rate
on which the lease is based is typically not readily identifiable. The incremental borrowing rate is determinedbased on currency-specific and term-specific swap
rates and contains margin and risk surcharges. Potential future increases in variable lease payments that
may arise from a change in an index or (interest) rate
are not factored into the leasing liability until they become effective. Once appropriate changes take effecton the lease payments, the leasing liability and leaseasset are adjusted. Lease payments are divided into
principal and interest payments. The interest portion isrecognized in the statement of income over the termof the lease, producing a constant periodic interest rate
for the remaining amount of the liability for each period. Lease assets are valued at cost of acquisition, whichis calculated as follows:

The Group distinguishes leases in which it is the lessor
between:- The initially valued amount of the leasing liability.
- All lease payments already made less any leasing incentives received.
- All initial direct costs incurred by the lessee.
- Estimated costs incurred by the lessee for removal of
the underlying asset, restoration of the site where theasset is located or back-transfer of the underlying
asset in the condition stipulated with the lessor.
Write-downs are taken on lease assets using thestraight-line method over the shorter of two periods:
the useful life of the lease asset or the term of theunderlying lease agreement. If the exercising of a buying option is deemed reasonably certain, the lease asset is depreciated over its useful life.
The agreements can contain both leasing and non-leasing components. For agreements for property and vehicles, the Group allocates the transaction price tothese components based on their relative individual
sale prices. In all other instances, the Group exercises
its option not to divide the agreement into leasing andnon-leasing components, rather treating the entire

80- Finance leases when all risks and opportunities associated with the underlying asset are transferred in allmaterial respects.
- Operating leases when not all risks and opportunities
associated with the underlying asset are transferredin all material respects.
For a finance lease, the Group initially reports a receivable in the amount of the net investment in the leaseagreement that corresponds to the cash value of thelease payments as well as the guaranteed residual value. The net investment is discounted at the interest
rate on which the lease agreement is based. Financial
income is reported according to a model of constant,periodic interest charged for the net investment in thelease agreement over the duration of the lease.
In an operating lease agreement, the asset on which
the lease is based is depreciated over its usual economic lifetime. The lease payments are reported as linear
income or on some other systematic basis when they
are better suited to the model under which the benefit
from using the underlying asset is reduced.
Financial investments recognized using the equity
method of accounting and other financial investments
Equity investments are initially recognized at cost andin subsequent periods at the amortized prorated net
assets. The carrying amounts are increased or decreased annually by the share in profit, distributions,and other changes in equity. Goodwill is not reported
separately but is included in the value of investment.
Goodwill is not amortized. Equity investments are written down when the recoverable amount of an investment in an associate falls below its carrying amount.
Listed shares are tested for impairment if they experience a long-term and significant reduction in market
value below the average acquisition cost.

Categories of financial assets
Financial assets are divided into the following two categories:

All other debt instruments are measured at fair value
with changes in value recognized in the balance sheet
result (at fair value through profit or loss).

- financial assets and liabilities at amortized cost and- financial assets measured at fair value.

All held equity instruments are recognized at fair value.
Changes in value are recognized in the balance sheet
result. When an equity instrument is not held for trading, the B. Braun Group can make the irrevocable decision to recognize it at fair value with changes in value
recognized in other income. In this case, it cannot be
subsequently reclassified in the income statement.

When financial assets are measured at fair value, losses and gains are recognized either completely in thebalance sheet result (at fair value through profit andloss) or in other income (at fair value through othercomprehensive income) with or without subsequent
reclassification in the statement of income. However,financial investments in equity instruments, were classified at fair value through other comprehensive income, since as strategic, long-term investments, they
are not held with the intention of realizing a short-term
gain.
The classification is determined when the financial asset is first recognized, that means, when the B. Braun
Group becomes counterparty to the contractual agreements of the instrument.
A debt instrument meeting the following two conditions is measured at amortized cost:- Business model condition: The goal of the B. Braun
Group business model is to hold financial assets inorder to collect the contractual cash flows.
- Cash flow condition: The contractual conditions of
the financial asset result at fixed times in cash flowsthat are only repayments of parts of the par value
and the interest on the yet unpaid parts of the parvalue.
A debt instrument meeting the following two conditions is measured at fair value with changes in value
recognized in other income and subsequent reclassification in the statement of income:- Business model condition: The goal of the B. Braun
Group business model is accomplished both by collecting the contractual cash flows from financial assets and selling financial assets.
- Cash flow condition: The contractual conditions of
the financial asset result at fixed times in cash flowsthat are only repayments of parts of the par value
and the interest on the yet unpaid parts of the parvalue.

A regular-way purchase or sale of financial assets is
recognized using trade date accounting. Financial assets are derecognized when claims to the receipt ofcash flows from the financial assets have been transferred or have expired and the Group has transferred
all risks and opportunities of ownership in all material
respects.
Impairment of financial assets
Impairments of held debt instruments that are notmeasured at fair value through profit or loss are basedon the premise of portraying expected losses. These arerecognized with one of the following amounts:- The “expected 12-month loss” (present value of the
expected payment defaults resulting from potential
default events within the next 12 months after thereporting date).
- The total loss expected over the residual term of the
instrument (present value of the expected payment defaults as a consequence of all potential default events
over the residual term of the financial instrument).
For trade receivables with and without significant financial components, contractual assets and leasingreceivables, impairment is always determined based on
the loss expected over the entire term. For all other
instruments, impairment is only determined based on
the loss expected over the entire term if the credit risk
has increased substantially since initial recognition.
Whether the risk of default has increased significantly
or not is evaluated based on an increase in the probability of default since addition.
Otherwise, impairment is determined based solely on
the expected losses that would result from a default
event within 12 months after the reporting date. In thiscase, therefore, loss events that could occur later than
12 months after the reporting date are not included.

81

Consolidated financial statements
Notes

A financial asset objectively indicates impairment if
one or more events have occurred that show a significant impact on the expected future cash flows of thefinancial asset. This includes observable data obtained
about the following events:- The issuer or debtor facing significant financial difficulties.
- A breach of contract, such as default or delinquency
on interest or principal payments.
- The creditor making concessions to the borrower for
economic or contractual reasons in relation to theborrower’s financial difficulties that the creditor
would not otherwise make.
- An increased probability that the borrower will enter
bankruptcy or financial reorganization.
- Disappearance of an active market for this financial
asset due to financial difficulties.
- The acquisition or issuance of a financial asset at ahigh discount that reflects the incurred credit losses.

Consolidated financial statements
Notes

tion process for sale in the ordinary course of business(work in progress), and assets that are consumed in the
production process or performance of services (rawmaterials and supplies). Inventories are measured at thelower end of cost and net realizable value, which is theestimated selling price in the ordinary course of business, less the estimated costs of completion and theestimated selling expenses, applying the weighted average cost formula. Related to this, the risks, in particular those arising from the storage period, reduced
usability, etcetera, are taken into account by means ofdevaluations.
In addition to direct expenses, manufacturing costs include allocated raw material and production overheads
as well as depreciation related to production plant andequipment. Allocated costs related to pensions and voluntary social contributions made by the company arealso included. Administrative expenses are included in
the costs if they relate to manufacturing.

For trade receivables, a write-down chart has been established to determine the expected losses over the
residual term as a fixed percentage depending on thelength of delinquency. Forward-looking macroeconomic information is not included, since the Group considers it not to have any substantial impact on the losses
expected over the residual term.

Provisions for pensions and similar obligations
Our actuary calculates provisions for pensions and similar obligations using the projected unit credit methodin accordance with IAS 19, taking into account future
pay and pension increases and staffing fluctuations.
Revaluations of net financial debt are recognized inequity in the period in which they occur.

Uncollectible receivables are written off when the Group
becomes aware the receivable cannot be collected.

Net interest on net financial debt is reported under financial income.

Assets and debts held for sale
Assets held for sale are assets that can be sold in theircurrent condition that are very likely to be sold. Sale isexpected within one year of classification. Debts intended to be sold along with assets in a transaction are
also reported separately. Assets held for sale are nolonger depreciated, rather they are recognized at fairvalue less costs to sell if lower than the carrying
amount. Results from valuing assets held for sale andsale groups are reported as results from continuing operations until finally sold. Results from valuing segments intended for sale are reported as results fromdiscontinued operations.

Any excess of plan assets over the pension obligations
is recognized as an asset only if it represents the netpresent value of the economic benefits.

Inventory
Under IAS 2, inventories include assets that are held forsale in the ordinary course of business (finished products and merchandise), assets that are in the produc-82

Other provisions
Provisions are recognized when a current legal or constructive commitment has arisen for the Group as aresult of a past event, an outflow of resources to settle
the commitment is likely and the amount can be estimated reliably. If a number of commitments of a similar
type exist, the outflow is recognized as a liability at themost probable value for the Group.
Provisions are recognized for onerous contracts if the
expected benefit from the contractual claim is lessthan the expected costs to settle the obligation. Any
associated assets are tested for impairment before
such a provision is created.

Provisions due after more than one year are measured
at discounted present value.
Provisions are released against the expense items forwhich they were created. If additions to provisions
were recognized under other operating expenses, therelease of these amounts is shown under the corresponding other operating income item.
Financial liabilities
Financial liabilities are initially recognized at fair valueless transaction costs. In subsequent periods, they aremeasured at amortized cost. Any difference between
the amount disbursed (less transaction costs) and therepayment amount is spread across the term of theloan using the effective interest method and recognized in the statement of income.
Liabilities from loans are recognized as current liabilities unless the Group has the unconditional right todefer repayment of the liability to at least 12 months
after the reporting date.
Liabilities
Financial liabilities comprise trade accounts payable
and other liabilities. Financial liabilities are initially recognized at fair value less transaction costs.
Current liabilities have a residual maturity of up to one
year and are stated at their repayment or settlement
amount. Non-current liabilities that are not the underlying transaction in permissible hedge accounting arerecognized at the cost of acquisition.
Accruals and deferrals are recognized under other liabilities.
Derivative financial instruments
Derivative financial instruments are recognized using
trade date accounting. They are initially measured attheir fair value on the date the contract is concluded.
They are subsequently measured at their fair value asof each reporting date. The method of recording gains
and losses depends on whether the derivative financial
instruments in question have been designated as hedging instruments and, if so, on the nature of the hedged
item. The fair values of the various derivative financial
instruments used for hedging purposes are recognizedunder other assets/liabilities. Changes in the valuation
reserve for cash flow hedges are shown in the consolidated statement of changes in equity. Derivative

financial instruments and derivative financial instruments designated as hedging instruments that aremeasured at fair value through profit or loss arereported as current assets/liabilities provided theresidual term does not exceed 12 months. Otherwise, they are recognized as non-current assets/liabilities.
When a hedging transaction designated as a cash flow
hedge expires or is sold, or the designation is deliberately reversed or no longer meets the criteria to beaccounted for as a hedging transaction, gains or losses
accumulated in equity up to that point remain in equity and are only recognized in the statement of income
when the future transaction originally hedged occurs
and is recognized in the statement of income. If the
future transaction is no longer expected to occur, gains
or losses accumulated in equity must be immediately
reclassified to the statement of income.
Note 32 provides additional explanatory information
about the use of derivative financial instruments aspart of risk management.
Deferred taxes
Deferred taxes are recognized using the liability method for all temporary differences between the tax basesof assets and liabilities and their carrying amounts inthe consolidated financial statements unless deferred
tax arises from the initial recognition of an asset or
liability in a transaction other than a business combination that, at the time of the transaction, affects neither the balance sheet result nor the taxable period
result. Deferred taxes are measured using tax rates andlaws that have been enacted or substantially enacted
as of the reporting date and are expected to apply
when the related deferred tax assets are realized, or
the deferred tax liabilities are settled.
Deferred tax assets result primarily from temporary
differences between the financial statements compiledin accordance with IFRS and the tax bases of individual companies as well as from consolidation. Deferred
tax assets stemming from losses carried forward andtax credits are recognized to the extent that it is likelythat future taxable income will be available against
which the losses carried forward can be offset.
Deferred tax liabilities arising from temporary differences in connection with investments in subsidiaries
and associates are recognized except where the timing

83

Consolidated financial statements
Notes

Consolidated financial statements
Notesof the reversal of the temporary differences can becontrolled by the Group and it is likely that the temporary differences will not be reversed in the foreseeable
future. Please also see Note 10 “Income taxes.”

Sales by division
Hospital Care

2023
’000
4,694,295

Notes on the consolidated statement of income
1 Sales
The following chart shows sales development by division, region, and type:

Percent

2022’000

Percent+in percent

53.7

4,541,613

53.4

3.4

expenditures for external services, and the depreciation of capitalized development costs. All researchcosts are expensed at the time they are incurred.

Other income includes numerous types of income, however, their individual valuations are not materiallysignificant.

Development costs are capitalized where all the conditions for capitalization under IAS 38 are met.

6 Other operating expenses

2023
’000

2022
’000

2,164,255

24.7

2,056,405

24.2

5.2

Avitum

1,849,489

21.1

1,861,929

21.9

-0.7

Currency gains

292,153

462,132

46,9450.5

39,8990.5

17.7

Additional income

30,96836,637

8,754,984

100.0

8,499,846

100.0

3.0

Derivative financial instruments

3,410

20,351

Income from other periods

9,934

5,702

Proceeds from appreciation of current
financial assets

3,404

3,179

Sales by region

2023
’000

Percent

2022’000

Percent+in percent

Germany

1,319,951

15.1

1,289,039

15.2

2.4

Proceeds from the disposal of assets

3,132

2,564

Europe (without Germany)

2,917,411

33.3

2,783,582

32.7

4.8

Proceeds from the release of provisions

8,723

10,655

North America

2,303,598

26.2

2,267,979

26.7

1.6

Other

64,33732,881Asia-Pacific

1,352,812

15.5

1,407,374

16.6

-3.9

416,061

574,101

Latin America

566,300

6.5

478,082

5.6

18.5

Africa and the Middle East

294,912

3.4

273,7903.2

7.7

8,754,984

100.0

8,499,846

100.0

3.0

2023
’000

Percent

2022’000

Percent+in percent

Sales of products

7,596,056

86.8

7,342,461

86.4

3.5

Sales from services

1,158,928

13.2

1,157,385

13.6

0.1

8,754,984

100.0

8,499,846

100.0

3.0

Sales by type

Payment terms are generally agreed with the customer on an individual basis and are typically between 30
and 90 days. Products are typically sold under the
warranty periods required by law. Extended warranties are treated as separate performance obligations.
Outstanding contractual obligations total € 235.0
million (previous year: € 255.4 million). It is expectedthat this amount will be able to be recognized as sales
within five years.
2 Cost of goods soldCost of goods sold includes the manufacturing costsof goods sold and the acquisition costs of merchandise sold. In addition to direct costs such as material,
personnel and energy costs, manufacturing costs

84

contain production-related overhead expenses including depreciation of property, plant, and equipment. Cost of goods sold also includes inventory
write-downs.
3 Selling and administrative expenses
Selling expenses include expenditures for marketing,sales organization, and distribution. This category also contains the expenses related to customer training
and consulting on technical product use. General administrative expenses comprise administrative expenses unrelated to production or sales.
4 Research and development expenses
Research and development expenses include costs forresearch, product and process development including

2022
’000

Currency losses

342,554504,814

Losses from impairment of current
financial assets

32,201

17,037

Additions to provisions

46,31915,292Losses on the disposal of assets

7,498

7,190

Expenses from other periods

4,024

4,684

Derivative financial instruments

5,477

6,484

5 Other operating income

Aesculap
Other sales

2023
’000

Currency gains primarily include gains from currency
fluctuations between transaction and payment days
from receivables and payables denominated in foreign
currencies as well as gains resulting from translation
at the period-end exchange rate.
Additional income includes, in particular, cost reimbursements from third parties and income from cafeteria sales.
Changes in the fair value of forward foreign exchange
contracts that are not designated for hedge accounting
are reported under derivative financial instruments.
Other operating income primarily includes income
from the transfer of shares from a non-core businesssubsidiary to B. Braun Holding GmbH & Co. KG totaling € 17.8 million. It also primarily includes paymentsof damages as well as income-related and other government grants. Income-related grants are recognized in the period in which the corresponding expenses
are incurred and amount to € 1.8 million (previous
year: € 0.9 million). During the fiscal year, grants of€ 1.8 million (previous year: € 0.9 million) were recognized through profit and loss.

Other

116,050

113,840

554,123

669,341

Currency losses primarily include losses from currency fluctuations between transaction and payment
days from receivables and payables denominated inforeign currencies as well as losses resulting fromtranslation at the exchange rate prevailing on the reporting date.
Losses from impairment of current financial assets
refer to value adjustments to trade receivables.
“Additions to provisions” primarily include the creation of a provision for legal proceedings in the UnitedStates totaling € 36.2 million.
Changes in the fair value of forward foreign exchange
contracts that are not designated for hedge accounting are reported under derivative financial instruments.
“Other” primarily consists of expenses for risks in
Russia totaling € 22.6 million, the assessed creditor’s
loss from the application of accounting standards for
hyperinflationary economies in Turkey, Argentina andGhana totaling € 11.7 million and legal fees in the
United States totaling € 20.2 million. Additionally,other expenses include a variety of expenses, however, their individual valuations are not materially significant.

85

Consolidated financial statements
Notes

Consolidated financial statements
Notes

7 Financial investments recognized using theequity method of accounting
Net income from investments recognized using theequity method of accounting breaks down as follows:

Income from financial investments
using the equity method
Expenses from financial investments
using the equity method

2023
’000

2022
’000

3,903

7,686

-2,992-2,420911

5,266

8 Net financial income
2023
’000

2022
’000

Interest and similar income

10,267

8,033

Interest and similar expenses-76,593-52,454(1,243)(338)-43,892-24,801-110,218-69,222

thereof to affiliated companies
Interest expenses for pension provisions
less expected income from plan assetst hereof recognized in other income
from financial assets and liabilities
measured at fair value:(1,102)(1,212)

Accrued interest expense

(192)

(210)

Interest and similar expenses are primarily comprisedof interest expense on financial liabilities. Expenses
resulting from accruing interest from non-current
other provisions are also recognized here.
9 Other net financial income
2023
’000

Other net financial income

Deferred taxes stem from temporary differences between the tax base of the individual companies andthe consolidated statement of financial position. They
are measured using the liability method based on theapplication of anticipated future tax rates for the individual countries as of the realization date. Generally, these are based on the regulations in effect as of
the reporting date. Deferred tax assets are offset only if the company has the legal right to settle current
tax assets and current tax liabilities on a net basis andthey are levied by the same tax authority. Income tax
expenses and deferred taxes are as follows:
2023
’000
Actual income taxes
Deferred taxes resulting from temporary differences
Deferred taxes resulting from losses
carried forward and tax credits

Interest income from discounting

Income from joint ventures (excluding
income from financial investments
recognized using the equity method)

10 Income taxes
Income taxes include corporation tax and trade income taxes for German companies as well as comparable income-related taxes for companies in othercountries. They are calculated on the basis of the tax
regulations applicable to the individual company.

23,7562022’000

14,140-5,222-5,671

18,534

8,469

102,247-36,232

Deferred tax assets and deferred tax liabilities apply
to differences stemming from recognition and measurement in the following items in the statement offinancial position:
Dec. 31, 2023
Assets’000

Liabilities’000

Assets’000

Liabilities’000

Intangible assets

23,051

38,11918,23940,837

Property, plant, and equipment

10,856269,191

22,808343,196

Financial investments

8,163

912

4,416

7,627

105,073

15,771

122,679

13,949Inventory
Receivables

23,748

8,127

18,617

9,448

Pension provisions

145,131426

107,033

657

Other provisions

40,3504,552

26,222

3.671

Liabilities

70,169-551

109,004

9,942

Other items
thereof non-current

2022
’000

Net balance

84,131

Valuation allowance on deferred
tax assets from temporary differences-11,643

14,798-36,02180,81336,467

1,642

987

521

1,520

428,183

337,534

429,539

430,847(213,514)(311,586)(206,837)(403,595)-234,424-234,424-244,611-244,611

193,759

103,110

184,928

186,236

380

-

132

-

Deferred taxes on tax credits

46,610-60,810-Losses carried forward (net, after valuation allowances)

23,114-28,878-263,863

103,110274,748

186,236

There are no temporary differences related to holdings in subsidiaries and associates as well as interests in joint ventures for which, according to IAS
12.39, no deferred tax liabilities were recognized.
Existing but unrecognized tax losses carried forward
can be used as follows:
Dec. 31, 2023 Dec. 31, 2022
’000
’000
Within one year

3,657

1,701

Within two years

1,005

3,165

Within three years

936

269

Within four years

2,332

269

Within five years or longer

32,48875,00140,41880,405

280,408

176,664

320,826

257,069

Can be carried forward indefinitely

86

Dec. 31, 2022

Unrecognized tax credits total € 0.2 million (previous
year: € 15.4 million). Realization of deferred tax assets totaling € 31.5 million (previous year: € 20.7 million) depends on future taxable income greater thanthe effect on income from the reversal of taxable
temporary differences. Recognition of these assets isjustified despite the recent losses incurred, since corresponding forecasts show that they will be realized.
Deferred taxes of € 60.2 million (previous year: € 23.7
million) were recognized directly in equity. Of thatamount, € 57.7 million (previous year: € 22.7 million)
is attributable to actuarial gains and losses from theaccounting of pension obligations, € -4.6 million (previous year: € -4.6 million) to changes in the fairvalue of securities and € 0.1 million (previous year:€ 0.2 million) to changes in the fair value of derivative financial instruments designated as cash flow hedges.

87Consolidated financial statements
Notes

Consolidated financial statements
Notes

The tax rate for B. Braun SE is 29.6 percent (previous
year: 29.6 percent). The tax expense calculated using
B. Braun SE’s tax rate can be reconciled into the actual tax expense as follows:
2023
’000
B. Braun SE tax rate

2022
’000

29.6%

29.6%

Profit before income tax

205,964

178,692

Expected income tax at parent
company‘s tax rate

-60,967-52,893

Differences due to different tax rates

15,661

24,286

Due to changes in tax rates-1,245

1,977

Tax reductions due to tax-exempt
income36,455

27,100Tax increases due to non-deductible
expenses-39,761-41,248

Addition/deduction of trade tax andsimilar foreign tax items

704

275

Final withholding tax on profit
distributions-4,621-3,621

Tax credits-10,401-5,231

Tax income (expense) relating toprevious periods-8,7672,099

Change to valuation allowances ondeferred tax assets
Profit (loss) from financial investments
recognized using the equity method-10,408

12,804108

941

Other tax effects

2,429-2,956

Actual tax expense-80,813-36,467

Effective tax rate

39.2%

20.4%

OECD Pillar Two model rules
The B. Braun Group is subject to the OECD‘s Pillar Twomodel rules (global minimum tax) under legislation
passed in Germany, the corporate domicile of the top
parent company required to report, and enacted on
December 28, 2023. Since the Pillar Two legislation
was not applicable yet in any jurisdiction in which
B. Braun operated business units as defined by thelaw at the time of reporting, the B. Braun Group was
not subject to any actual taxation in the reporting
period. The B. Braun Group exercises the exemption
from the accounting of deferred taxes associated with Pillar Two income tax that was the subject of theamendments to IAS 12 published in May 2023.

88

The B. Braun Group is currently working on an estimate of the effects of Pillar Two after the legislationenters into force.

the Pillar Two legislation that could result in deviations from the effective tax rates calculated in accordance with IAS 12.86.

In May 2023, the Group’s corporate tax department
began working with external tax experts on the implementation of the Pillar Two legislation. Following
the start of the Pillar Two project in July 2023 and an
impact analysis completed in September 2023, theB. Braun Group is currently analyzing what data
points and sources are necessary as well as how tocollect these across the Group. The subsequent project will examine questions of data collection andprocessing for Pillar Two purposes, including an investigation into possible tool solutions.

Given the complexity of the rules and their application to every location in the Group, it is not yet possible to reliably estimate the quantitative effects of thepassed or enacted legislation.

In the context of the implementation of the Pillar Two
legislation, the B. Braun Group has also examined theoption of applying the “safe harbor” rules based on
the country-by-country report, which provide for a
simplified calculation of the effective tax rate. The
analysis for this is based on relevantly enriched datafrom the country-by-country report for 2023. This
analysis provides a good appraisal of the jurisdictions
for which a detailed Pillar Two tax assessment will be
required starting January 01, 2024, and which could
subsequently result in an additional income tax burden in Germany. Such an additional tax on income inGermany would only be charged if the affected jurisdictions with lower tax rates do not exercise theiroption of introducing a qualified domestic minimum
top-up tax (QDMTT ). This option would result in an
additional income tax burden in that jurisdiction.
The analysis, based on the enriched data from thecountry-by-country report for 2023, produced a simplified average effective tax rate of less than 15
percent for just 7 jurisdictions in the reporting period:
Chile, Lithuania, Paraguay, Romania, Serbia, Switzerland and Thailand. This means these jurisdictions failthe simplified effective tax rate test, the routine profits test and the de minimis test for the materiality
threshold. As a result, the temporary relief under safe
harbor rules is not applicable. Even though the simplified average effective tax rates do not exceed 15
percent, the B. Braun Group may still not be required
to pay any Pillar Two income tax for these jurisdictions due to amendments specifically provided for in

11 Earnings per share
Earnings per share is calculated according to IAS 33
by dividing consolidated net income less non-controlling interests by the number of shares in issue. The
number of shares entitled to receive dividends remained unchanged at 800,000,000 during the fiscal
year. There were no outstanding shares as of December 31, 2023 or December 31, 2022 that could havediluted the earnings per share. Earnings per sharetotals € 0.14 (previous year: € 0.15).
Dividends paid in 2023 for the previous fiscal year
totaled € 32 million (previous year: € 32 million). Dividends paid per share in 2023 totaled € 0.04 (previous year: € 0.04). The Executive Board and Supervisory Board are proposing a dividend of € 0.04 pershare for fiscal year 2023. The proposed dividend
must be ratified by the annual shareholders‘ meetingon March 19, 2024. This dividend liability is not included in the consolidated financial statements.
12 Other notes to the consolidated statement ofincomeMaterial costs
The following material costs are included in the costof goods sold:Expenses for raw materials, supplies
and goods purchased

2023
’000

2022
’000

3,922,126

3,847,864

In the reporting period, expenses in the cost of goods
sold that are related to inventory write-downs to factor in risks arising in particular from storage period
and reduced usability total € 58.9 million (previous
year: € 64.9 million). The amount of reversals of write-downs during the fiscal year (increase in net realizable value) due to the elimination of these risks
totals € 34.5 million (previous year: € 35.2 million).
Personnel expenditures/employees
The following personnel expenditures are recognizedin the statement of income:
Personnel expenditures

2023
’000

2022
’000

2,740,558

2,658,341

Social security payments

409,443

397,859

Welfare and pension expenses

116,112145,217

3,266,113

3,201,417

Production

42,532

43,930Marketing and sales

12,824

13,227

Research and development

2,833

2,858

Wages and salaries

Employees by function (annual average, including temporary employees)

Technical and administration
thereof part-time

5,730

5,984

63,91965,999(6,344)(6,390)

Amounts from accruing interest on pension provisions
are not recognized as personnel expenditures rather
are reported as net interest income.
The annual average number of employees is prorated
based on the date of first consolidation or deconsolidation, as applicable. Employees of joint ventures areincluded in the total according to the percentage ofinterest.
As in the previous year, the annual average number of
employees in 2023 attributable to the companies
consolidating for the first time was zero.

89

Consolidated financial statements
Notes

Consolidated financial statements
Notes

13 Total audit fee
The following fees were recognized as an expense forservices provided worldwide by the auditors of PricewaterhouseCoopers in 2023:

Audit fees
thereof PricewaterhouseCoopers
GmbH, Germany
Other certification services
thereof PricewaterhouseCoopers
GmbH, Germany
Tax advisory services
thereof PricewaterhouseCoopers
GmbH, Germany
Other services
thereof PricewaterhouseCoopers
GmbH, Germany
thereof PricewaterhouseCoopers
GmbH, Germany

2023
’000

2022
’000

5,655

5,351

(1,313)(1,299)

27

24

(2)

-

1,235

1,280

The audit fees include all fees paid and owed to PricewaterhouseCoopers plus reimbursable expenses forthe audit of the Group’s consolidated financial statements and the audit of the financial statements of
B. Braun SE and its subsidiaries. Fees for certification
services mainly relate to certifications performed aspart of acquisitions and divestitures, the examinationof internal control systems, particularly IT systems,
and expenses related to statutory or judicial requirements. Tax advisory services mainly relate to fees foradvice on completing tax returns, checking tax assessments, support for company audits or other inquiries conducted by the tax authorities as well as tax
advice related to transfer pricing.

Notes on the consolidated statement of financial
position
14 Intangible assets
Cost of acquisition or manufactureInternallycreatedintangible
assets’000

Advancepayments

Total

’000

Licenses,trademarks
and othersimilar rights
’000

’000

’000

407,293

847,602150,518

51,362

1,456,775-2,258

11,8658,940

35

18,582Adjustment as per IAS 29

0

1,077

0

-36

1,041

Additions to scope of consolidation

0

0

0

0

0

Disposals from scope of consolidation

0

-5

0

0

-5

Additions013,438845

12,054

26,337

Transfers

0

13,636

0-14,719-1,083Jan. 01, 2022
Foreign currency translation

(14)

(47)

3,104

2,570

(2,299)(1,893)

Disposals

10,021

9,225(3,629)(3,239)

Disposals of assets held for sale

0

0

0

0

0

-1,505-7,7070-96-9,308Dec. 31, 2022

403,530

879,906

160,30348,6001,492,339

Jan. 01, 2023

403,530

879,906

160,30348,6001,492,339

Foreign currency translation-4,113-19,812-5,777-453-30,155

Adjustment as per IAS 29

659

1,388

0

0

2,047

0

0

0

0

0

Additions to scope of consolidation
Disposals from scope of consolidation

0

0

0

0

0

Additions353

14,39751

9,417

24,218Transfers

017,425

0-16,486939

Disposals of assets held for sale

0

0

0

0

0

-524

-32,227

0-6,194-38,945399,905

861,077

154,577

34,8841,450,443

Accumulated amortization 2023

201

637,806

129,646

15,488783,141

Accumulated amortization 2022

344

617,771

126,230

18,888763,233

Carrying amounts Dec. 31, 2023

399,704

223,271

24,931

19,396

667,302

Carrying amounts Dec. 31, 2022

403,186

262,135

34,07329,712

729,106

0

58,6848,148

32

66,864

0

94

0

32

126

Disposals
Dec. 31, 2023

Amortization in the fiscal year
thereof unscheduled

90

Acquired
goodwill

91

Consolidated financial statements
Notes

Consolidated financial statements
Notes

In the fiscal year, amortization of intangible assets totaling € 66.9 million (previous year: € 132.6 million)
was recognized in the statement of income as cost of
goods sold, selling expenses, administrative expenses
or research and development expenses depending onuse.
The B. Braun Group capitalized € 0.1 million (previous
year: € 0.8 million) in development costs for the fiscal
year. All the prerequisites for capitalization were met.
Goodwill is allocated to cash-generating units (CGUs)
for the purpose of impairment testing. Each of these
CGUs represents the Group’s investment by the primary reporting segment.
A summary of the distribution of goodwill by CGU andthe assumptions for their impairment testing are listed
below:
Hospital Care’000

Aesculap’000

Avitum
’000

Total
’000

Dec. 31, 2022
Carrying
amount of
goodwill

89,055

19,467

294,664

Annual growth
rate

2.4%

2.2%

2.3%

Discount rate

9.1%

8.7%

8.7%

84,745

19,462295,496

Annual growth
rate

2.5%

2.4%

2.3%

Discount rate

8.5%

8.5%

8.5%

Management has determined the budgeted grossmargin based on past trends and expectations about
future market trends. The weighted average growth
rates largely correspond to the predictions from industry reports. The discount rates used are pre-tax
rates and reflect the specific risks of the relevant
CGUs.
If the actual future gross margin had been 10 percent
less than the gross margin estimated by Management
on December 31, 2023, no impairment of goodwill
would have occurred. The same holds true if the discount amount that was used to calculate the discounted cash flow had been 10 percent higher thanManagement’s estimates.

399,70315 Property, plant and equipment
Cost of acquisition or manufactureJan. 01, 2022

Land andbuildings

Technical
plants andmachinery

’000

Total

’000

Advancepayments
and assets
under construction
’000

’000

3,190,049

4,323,844

1,091,226

448,830

1,170,306

10,224,255

36,59655,66011,376

7,539

48,110159,281

Adjustment as per IAS 29

11,441

11,784

16,073075

39,373

0

0

0

0

0

0

Additions to scope of consolidation
Disposals from scope of consolidation-3,2570-6,02900-9,286

Additions

63,47459,57894,012

10,770351,798

579,632

Transfers

156,169

260,703

22,4519,034-455,475-7,118

0

0

0

0

0

0

Disposals of assets held for sale-38,261-46,131-58,097-14,1152,251-154,353

Dec. 31, 2022

3,416,211

4,665,438

1,171,012

462,058

1,117,065

10,831,784

Jan. 01, 2023

3,416,211

4,665,438

1,171,012

462,058

1,117,065

10,831,784

Foreign currency translation-83,732-88,126-27,926-7,567-22,998-230,349

Adjustment as per IAS 29

6,274

12,492

9,347

0

28

28,141

0

0

0

0

0

0

Additions to scope of consolidation
Disposals from scope of consolidation-9-4,736

-362

0

-299

-5,406

Additions

128,824

77,756

104,700

22,884

297,145

631,309

Transfers

273,341

208,646

2,792

25,960-511,678-939

Disposals of assets held for sale

0

0

0

0

0

0

-26,873-90,632-72,594-12,378-7,991-210,468

Dec. 31, 2023

3,714,036

4,780,838

1,186,969

490,957

871,272

11,044,072

Accumulated depreciation 2023

1,319,866

3,107,304

858,393

332,410

37,531

5,655,504

Accumulated depreciation 2022

1,189,705

2,959,611

830,758

314,425

16,6895,311,188

Carrying amounts Dec. 31, 2023

2,394,170

1,673,534

328,576

158,547

833,741

5,388,568

Carrying amounts Dec. 31, 2022

2,226,506

1,705,827

340,254

147,633

1,100,376

5,520,596

174,269

283,844

120,205

27,417

26,186

631,921

17,483

4,602

64

0

26,83348,982

Disposals

Depreciation in the fiscal year
thereof unscheduled

In the fiscal year, depreciation of property, plant andequipment totaling € 631.9 million (previous year:€ 614.7 million) was recognized in the statement ofincome as cost of goods sold, selling expenses, administrative expenses or research and development
expenses depending on how the asset was used. Unsch-

92

Leasedplants’000

Other
plants,operatingand officeequipment’000

Foreign currency translation

Disposals

403,186

Dec. 31, 2023
Carrying
amount of
goodwill

The recoverable amount of a CGU is determined by
calculating its value in use. These calculations are based on projected cash flows derived from the fiveyear forecast approved by Management. In addition
to inflation rates, which remain at a high level, andthe associated rise in interest rates by the central
banks, possible effects due to volatile energy, financial and commodity markets as well as specific country risks were also taken into account in the planning,as the course of geopolitical conflicts can influence
the development of the B. Braun Group. It was also
assumed that the structural optimization measurescontinued from the previous year will offset expected
cost increases in coming years and improve profitability. As a result, continued growth is expected in theapproved five-year forecast.

eduled depreciation primarily concerns the depreciation of assets under construction to expand production
capacity for rinsing solutions in bags in the United States amounting to € 24.5 million, which was recognized
as cost of goods sold.

93

Consolidated financial statements
Notes

Consolidated financial statements
Notes

The capitalized borrowing costs in the fiscal year totaled€ 24.6 million (previous year: € 15.1 million). This calculation assumed an interest rate of 4.0 percent (previous year: 2.3 percent).
The current carrying amount of property, plant, andequipment acquired with government grants is € 78.3
million (previous year: € 63.4 million). As of the reporting date, there were no unfulfilled conditions or uncertainties with regard to market success that would
have required a modification of recognition in the statement of financial position.
The carrying amount of property, plant and equipmentwith restricted title is € 25.2 million (previous year:€ 23.9 million).
Investment real estate, mainly office buildings, is held
for the purpose of long-term rental income and is not
used by the B. Braun Group itself. The rental income
from investment real estate amounts to € 0.7 million.
The direct operating expenses for the real estate
amount to € 0.1 million. The fair value is € 9.2 million.
Investment
real estate
As of Jan. 01

2023
’000

2022
’000

8,201

0

Foreign currency translation

00Additions to scope of consolidation

00

Disposals from scope of consolidation

00Additions00Transfers

0

8,201

Disposals of assets held for sale00

Disposals00

As of Dec. 31

8,201

8,201

Accumulated depreciation

1,392

1,248

Carrying amounts

6,809

6,953

144
0

Depreciation in the fiscal year
thereof unscheduled

The Group leases various property, production plants,
vehicles and other operating and office equipment.
Leasing terms are negotiated individually and containa number of varying terms. The lease agreements are
typically concluded for a fixed term but may containextension options.
The following items are reported on the statement offinancial position in relation to leases:
Dec. 31, 2023 Dec. 31, 2022
’000
’000
707

517

Buildings

369,038

384,451

Technical plants and machinery

26,141

15,698Other plants, operating and officeequipment

50,73937,950446,625

438,616

Licenses, trademarks and similar rights

Net carrying amount

Total lease payments in the fiscal year totaled € 146.9
million (previous year: € 140.4 million).
Possible future cash outflows from buying options
totaling € 4.7 million and from termination options
totaling € 0.5 million were not included in the leasing
liabilities as the exercise of these options was notconsidered reasonably certain.
17 Financial investments and joint ventures recognized using the equity method of accounting andother financial investments
The Group’s holdings in its associated companies andjoint ventures are as follows:

The statement of income contains the following figuresin relation to leases:
2023
’000

2022
’000

2022
’000

Associated companies
Carrying value of shares

Additions to rights of use during fiscal year 2023 totaled € 160.1 million (previous year: € 66.3 million).

2023
’000

71,93874,678

Share of profit/loss

-851

2,609

Share of net income

-851

2,609

1,019

892

Joint ventures
Carrying value of shares
Share of profit/loss

63

31

Share of net income

6331

Depreciation of rights of use
Licenses, trademarks and similar rights

-71

-24

Buildings-85,852-73.241

Technical plants and machinery-8,878-10,009

Other plants, operating and officeequipment-25,708-24,611-120,509-107,885Interest expenses-16,257-13,331

Expenses relating to short-term leases-7,606-7,920

Expenses relating to leases for lowvalue assets not contained in theabove short-term leases-4,183-4,658

144

Expenses relating to variable lease
payments not contained in the leasing
liabilities-6,941-6,8960

Income from subleasing rights of use

69

188

As of December 31, 2023, the carrying value of holdings in associated companies included goodwill totaling € 25.7 million (previous year: € 26.7 million).
Liabilities to associated companies totaled € 15.0
million (previous year: € 15.6 million) and to joint ventures € 6.0 million (previous year: € 14.8 million).

16 Lease
This section contains information on leases in which
the Group is the lessee. For information on leases inwhich the Group is the lessor, refer to Note 18 “Tradereceivables”.

9495

Consolidated financial statements
Notes

Cost of acquisition

Consolidated financial statements
Notes

Financialinvestments
recognized
the equity ofaccounting
’000

Other
holdings

Securities

’000

’000

’000

’000

76,96474,691

4,710

5,220

6,025

167,610

297

0

21

-1

12

329

Additions to scope of consolidation

0

0

0

0

0

0

Disposals from scope of consolidation

0-17,562000-17,562

Dec. 31, 2022

Additions

2,177

26,126100

65

12,581

41,049Transfers-1,353

1,603

-250

0

0

0

Jan. 01, 2022
Foreign currency translation

Other
Loans

Total

18 Trade receivables

Loans tocompaniesin which theGroup holds
an interest’000

Age analysis of trade receivables

Write-ups

0

0

0

0

0

0

Disposals

0-4,934-606-1-1,030-6,571

Fair value adjustments

0

2,312

56

-76

0

2,292

78,08582,236

4,031

5,207

17,588187,147

Dec. 31, 2022
Jan. 01, 2023
Foreign currency translation
Additions to scope of consolidation
Disposals from scope of consolidation

78,08582,236

4,031

5,207

17,588187,147

212

0

0

-8

-107

97

0

0

0

0

0

0

0

-5,01400

0-5,014

Additions-845

24,071253

19

19,42842,926

Transfers-1,979

1,979

0

0

0

0

Write-ups

0

0

0

0

0

0

Disposals

0-29,645-1.600-9-9,891-41,145

Fair value adjustments

0-25,213

0

-124

0

-25,337

75,473

48,414

2,684

5,085

27,018

158,674

Accumulated amortization 2023

2,516

234

0

2,696

21

5,467

Accumulated amortization 2022

2,516

94

0

2,744

138

5,492

Dec. 31, 2023

Carrying amounts Dec. 31, 2023

72,95748,180

2,684

2,389

26,997

153,207

Carrying amounts Dec. 31, 2022

75,56982,142

4,031

2,463

17,450181,655

0

4,300

0

-47

0

4,253

Amortization in the fiscal yeara) Non-impaired trade receivables
Total

Not yet due

Overdueup to 30
days

Overdueof 31 - 60days

Overdueof 61 - 90days

Overdueof 91 - 180
days

Overduemore than
180 days

Trade receivables

1,017,660

826,729

60,11936,52021,55329,94342,795

thereof leasing

27,105

27,105

-

-

-

-

-

-2,970-2,764

-25

-24

-37

-39

-81

1,014,690

823,965

60,09436,496

21,51629,90442,714

Trade receivables

1,100,329

872,799

83,34042,44926,94839,04035,752

thereof leasing

26,434

26,434

-

-

-

-

-

’000

Lifetime ECL
Carrying amount
Dec. 31, 2023

Lifetime ECL
Carrying amount-3,067-2,904

-15

-24

-30

-41

-53

1,097,262

869,895

83,32542,425

26,91838,99935,699Lifetime expected credit losses (ECL) were calculatedusing gross receivables less receivables for salethrough the ABS program as well as credit loss rates
in a range of 0.02 to 0.33 percent (previous year: 0.04
to 0.33 percent). A significant proportion of the
non-impaired and overdue trade receivables are attributable to receivables from social security providers,
government or government-sponsored companies.

With regard to trade receivables that are neither impaired nor in arrears, there were no indications as of
the reporting date that the debtors in question are
not able to meet their payment obligations.

b) Impaired trade receivables
Total

Not yet due

Overdueup to 30
days

Overdueof 31 - 60days

Overdueof 61 - 90days

Overdueof 91 - 180
days

Overduemore than
180 days345,581

220,537

31,456

10,9697,995

17,36257,262’000
Dec. 31, 2022
Trade receivables
Loss allowances-45,090-10,082-1,654-721-504-1,795-30,334

Carrying amount

300,491

210,455

29,802

10,248

7,491

15,567

26,928Dec. 31, 2023

96

Trade receivables

345,589

199,11032,425

8,837

5,434

13,12986,654

Loss allowances-63,004-13,455-2,192-697-584-2,275-43,801

Carrying amount

282,585

185,655

30,233

8,140

4,850

10,85442,85397

Consolidated financial statements
Notes

Consolidated financial statements
Notes

Impairments on trade receivables have changed asfollows:
2023
’000

2022
’000

Amount of loss allowances
as of Jan. 01

48,06045,587

Foreign currency translation-1,711179

Additions

23,678

11,175

Utilization-3,380-4,592

Releases-654-4,289Amount of loss allowances
as of Dec. 31
thereof for specific impairments
thereof for specific lump-sum
impairments
thereof lifetime ECL

65,99348,060(63,004)(45,090)--(2,989)(2,970)

The total amount of additions consists of specific impairments and lifetime ECL .
The following table shows expenses for the complete
derecognition of trade receivables due to being uncollectible and income from previously derecognized
trade receivables:

Expenses for complete derecognitionof trade receivables
Income from trade receivablespreviously derecognized

2023
’000

2022
’000

5,101

2,779

742

195

Fair value of collateral received totals € 20.2 million(previous year: € 10.6 million). This collateral consists
primarily of payment guarantees.
With regard to trade receivables, there is no concentration with respect to individual customers, currencies or geographic attributes. The largest receivablefrom a single customer is equivalent to approximately
1 percent of all trade receivables reported.
As of December 31, 2023, B. Braun Group companies
had sold receivables worth up to € 78.7 million (previous year: € 76.2 million) under an asset-backed securities (ABS) program with a maximum volume of€ 100 million. The basis for the transaction is the assignment of trade receivables of individual B. Brauncompanies to a structured entity as part of an undisclosed assignment. A structured entity should be consolidated under IFRS 10 if the criteria for control ofthis company have been met (IFRS 10.B2). The existence of a controlling relationship requires decision-making power and variable returns as well as a link
between the two. Since B. Braun does not participate
in the variability of the structured entity, this company is not consolidated in the consolidated financial
statements.
The requirements for a receivables transfer according
to IFRS 9.3.2.1 are met, since the receivables are transferred according to IFRS 9.3.2.4(a). In the previous
fiscal year, verification in accordance with IFRS 9.3.2.6
showed that virtually all risks and rewards were neithertransferred nor retained. The control of receivables remains with B. Braun, as a further sale of the receivables
is economically detrimental to the structured entity.
Consequently, B. Braun’s continuing involvement must
be recognized. Firstly, this includes the maximum
amount that B. Braun could conceivably have to pay
back under the senior and third-ranking default guarantee assumed (€ 1.6 million; previous year: € 0.9 million). Secondly, the maximum expected interest
payments as made until payment is received for the
carrying amount of the receivables transferred are recognized in the statement of financial position (€ 1.1
million; previous year: € 0.6 million). The fair value ofthe guarantee/interest payments due totaling € 0.7
million (previous year: € 0.6 million) was recognized in
the statement of income under other liabilities.

Trade receivables include the following amounts inwhich the Group is a lessor in a finance lease. Theseare primarily leased dialysis machines, infusion pumps
and instrument sets:
Minimum lease payments for receivables from finance lease agreements

2023
’000

2022
’000

Less than 1 year

9,399

8,997

In Year 2

7,274

6,572

In Year 3

5,966

5,473

In Year 4

2,880

4,263

In Year 5

827

1,681

1,004

1,216

Gross investment

27,35028,202

Interest amount

1,317

1,433

401

337

26,434

27,106After 5 years

Total discounted, non-guaranteed
residual value
Net investment

Term structure offinancial liabilities

2023
’000

Less than 1 year

25,89941,488In Year 2

12,01528,787

In Year 3

8,262

22,550In Year 4

5,798

15,665

In Year 5

3,339

10,412

Over 5 years

3,172

17,71458,485

136,616

Total

2022
’000

The rental income from operating leases in the fiscal
year amounts to € 14.1 million.

Gains realized by sale in the fiscal year totaled€ 0.6 million.

19 Other assets
Dec. 31, 2023
Residual term
< 1 year’000

Dec. 31, 2022

Residual term
> 1 year’000

Residual term
< 1 year’000

Residual term
> 1 year’000

Other tax receivables

79,945

0109,6620Receivables from social security providers

4,069

0

5,330

0

Receivables from employees

3,039

212

3,019

259

Advance payments

26,25451,89630,631

43,108

Accruals and deferrals

66,193

3,138

59,708

3,058

179,500

55,246208,350

46,425

Receivables from derivative financial instruments

20,556

0

25,6990

Securities at amortized cost

14,602

0

13,9170

Securities held for trading

38,608035,5780Assets held for sale

7,387

0

0

0

Other receivables and assets

98

The Group leases dialysis machines, infusion pumps
and instrument sets under different operating leases,
which are summarized as other plants, operating andoffice equipment and recognized in leased plants. Total future lease payments under interminable operating leases are as follows:

126,358

10,18972,4408,199

207,511

10,189147,634

8,199

387,01165,435355,984

54,62499

Consolidated financial statements
Notes

Consolidated financial statements
Notes

Assets held for sale comprise Aesculap division assets
for developing cell therapies and biomaterials for restoring damaged cartilage tissue. After a re-evaluationand shift in strategy, it was decided in 2023 to sell
these assets. We are currently in close talks with apotential buyer and the transaction is expected to be
finalized in early 2024. The assets held for sale are divided into asset classes as follows:
Dec. 31, 2023
’000
Intangible assets

1,397

Property, plant and equipment

3,210

Inventories

1,473

Trade receivables

1,031

Other assets

275
7,386

Other receivables and assets primarily comprises obtained loans.
With regard to other receivables, as of the reporting
date there were no indications that the debtors inquestion will not be able to meet their payment obligations. No material amounts of receivables were
overdue or impaired as of the reporting date.
20 Inventories

Raw materials and supplies

Dec. 31, 2023
’000

Dec. 31, 2022
’000

553,609569,484

Write-down-40,658-40,085

Net raw materials and supplies

512,951

529,399

Works in progress

281,896

262,855

Write-down-14,006-12,319

Net works in progress

267,890

250,536

Finished products, merchandise

1,166,860

1,236,680

Write-down-103,970-107,979

1,062,890

1,128,701

1,843,731

1,908,636

Net finished products, merchandise100

Of the inventories available on December 31, 2023,€ 413.2 million (previous year: € 410.0 million) wererecognized at their net realizable value.
As in the previous year, no inventories were pledged
as collateral for liabilities.
21 Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits, other short-term highly liquid financial assets with residual maturities of three months orless that are subject to no more than insignificant
fluctuations in value, and bank overdraft facilities. In
the statement of financial position, utilized bankoverdraft facilities are shown under current financial
liabilities as liabilities to banks.
Of cash and cash equivalents, € 14.6 million (previous
year: € 17.7 million) are subject to availability restrictions due to local foreign exchange and paymenttransaction controls that prevent this amount frombeing used by the rest of the Group.
Changes in cash and cash equivalents are shown inthe consolidated statement of cash flows.
22 Subscribed capital
B. Braun SE’s share capital of € 800 million is divided
into 800,000,000 no-par value registered shares thatare fully paid up. Each no-par value registered shareequals a calculated share of € 1.00 of subscribed capital.

Changes in other reserves

Reserve for cash
flow hedges

Jan. 01, 2022

Reserve for currency translationdifferences
’000

Total

’000

Fair value ofavailable-for-salefinancial assets
’000

-176

9,091

-226,893-217,978

0

715

0

715

4,744

0

0

4,744

0

0

89,102

89,102’000

Changes recognized directly in equity(after taxes)
Changes in fair value of securities
Cash flow hedging instruments
Changes due to currency translation
Total

4,744

715

89,102

94,561

Dec. 31, 2022

4,568

9,806

-137,791-123,417

Jan. 01, 2023

4,568

9,806

-137,791-123,417

0-23,539

0-23,539

-795

0

0

-795

0

0

-43,358-43,358

Total

3,773

-13,733-181,149-67,692

Comprehensive income over the period

8,341-3,927-318,940-191,109

Changes recognized directly in equity(after taxes)
Changes in fair value of securities
Cash flow hedging instruments
Changes due to currency translation

Changes in the other equity capital components areshown in the consolidated statement of changes inequity.

Claims of shareholders to dividend payments are reported as liabilities in the period in which the corresponding resolution is passed.

23 Capital reserves and retained earnings
The capital reserves include the premium from thecapital increase relating to the contribution of sharesin B. Braun Melsungen AG as well as payments fromshareholders.
Retained earnings comprise past earnings by the companies in the consolidated financial statements thatwere not distributed. The retained earnings also include
consolidated net income less non-controlling interests.

101

Consolidated financial statements
Notes

Consolidated financial statements
Notes

24 Non-controlling interests
Non-controlling interests comprise third-party interests in the equity of consolidated subsidiaries. They
exist in particular in Almo-Erzeugnisse E. Busch GmbHin Bad Arolsen, Germany, B. Braun Medical AG in Sem-pach, Switzerland, and B. Braun Austria Ges.m.b.H. in
Maria Enzersdorf, Austria. The summarized financial
information of these subsidiaries before consolidation
is as follows:
Attributable toAssetsLiabilities

Sales

Profit/loss

’000

’000

’000

Almo-Erzeugnisse E. Busch GmbH, Germany

84,86942,251

B. Braun Austria Ges.m.b.H., Austria

142,937

25,407

B. Braun Medical AG, Switzerland

566,026

Profit/loss

Dividend’000

Non-controllinginterests
in percent

’000

’000

0

27

369

616

37,606-36

40

15,5054,000

51,511-9,67949

22,083

5,741

4,878

90,061-9,71537,957

10,973-281-785-1,066

0

27

-77

0

79,785

15,677-1,61314,06423

49

6,271¹

12,000¹

429,107

39,566-9,44130,126-13,745

49

19,387

6,062

54,962-11,839

43,124-13,722

19,311

6,062

Total earnings

Cash flow’000

Other comprehensive
income (OCI)
’000

’000

73,165

1,352

-408

944

75,62538,763-1,157152,035

421,636

45,067

6,443

793,832

219,693

570,426

85,182Almo-Erzeugnisse E. Busch GmbH, Germany

79,03837,06475,122

B. Braun Austria Ges.m.b.H., Austria

127,530

24,779B. Braun Medical AG, Switzerland

607,065

155,855

813,633

217,698

584,014

2022

2023

Profit and dividends were still calculated with the previous share of capital.

1

25 Provisions for pensions and similar commitments

Provisions for pension commitments

Dec. 31, 2023
’000

Dec. 31, 2022’000

1,223,289

1,052,818

Payments totaling € 49.2 million (previous year:€ 48.3 million) are expected for fiscal year 2024. Of
those, € 9.1 million (previous year: € 10.7 million) will
be in contributions to external plan assets and € 40.1
million (previous year: € 37.6 million) in benefits paid
directly by the employer to beneficiaries.
The Group’s pension commitments are commitments
under defined contribution and defined benefit plans.
For defined contribution plans, the Group has nofurther payment obligations once the contributions
have been paid. They are recognized as an operating
expense in the amount of the contributions paid. In
the previous fiscal year, this amount was € 47.0 million (previous year: € 44.6 million). In addition, theGroup makes contributions to statutory basic provision plans for employees in many countries (including
Germany). However, since this covers various forms ofsocial security benefits, no precise statement can be102

made with regard to the part that solely relates toretirement payments. These expenses are shown under social security payments, under Note 12 “Personnel expenditures/employees.”
Employees’ claims under defined benefit plans are based on legal or contractual provisions.
Defined benefit plans based on legal regulations consist primarily of benefit obligations outside Germany
at the time of employment termination and are fulfilled in the form of a capital sum. The benefit amount
depends mainly on employees’ length of service andfinal salary.
Pension commitments for employees in Germany account for approximately 73 percent of Group pension
commitments. These primarily consist of annuity payments made in the event of disability, death, or an
employee reaching the retirement age. The main pension plans for employees in Germany who joined thecompany in 1992 or later are age-dependent defined
contribution plans with a modular form. Employees
who joined the company before 1992, with a small
number of exceptions, received commitments linked
to their final salaries.

Retirement benefits in Germany are predominantly
financed by pension provisions.
Pension commitments for employees in Switzerland
account for approximately 13 percent of Group pension obligations. The benefits consist of annuity payments made in the event of disability, death, or an
employee reaching the retirement age. The pension
commitments are defined contribution plans with legally prescribed annuity rates based on implicit interest rate guarantees.
Pension commitments for employees in the UnitedStates account for approximately 8 percent of Grouppension commitments. In this case, the pensions havea lump-sum payment option. Payments are made in
the event of disability, death, or an employee reaching
the retirement age. The pension amount is calculated
largely on the basis of the employee’s average salary
up to 1998. A cash balance scheme applies to any
earnings increase after this time.

customary for both regions, which are managed byvarious bodies (such as a board of trustees) underlocal legislation. Both countries have minimum funding requirements, which have a material impact on
the amount of future pension contributions.
In addition to the longevity risk and the risk of future
pension and salary increases, risks faced by the
B. Braun Group associated with the benefits payable
also include capital market risks, which could impact
both income from plan assets and the discount rate.
The liability recognized in the statement of financial
position for defined benefit pension plans is the netpresent value of the defined benefit obligation (DBO)
at the reporting date, allowing for future trend assumptions, less the fair value of external plan assets
at the reporting date. The defined benefit obligation
is calculated using the projected unit credit method.
The interest rate used to determine the net present
value is usually the yield on prime corporate bonds ofsimilar maturity.

Retirement benefits in Switzerland and the UnitedStates are financed by external pension funds, as is103

Consolidated financial statements
Notes

Consolidated financial statements
Notes

The amount of pension provisions in the statement offinancial position is derived as follows:

Pension commitments and external plan assets arereconciled as follows:

Dec. 31, 2023
’000

Dec. 31, 2022
’000

Present value of pension
commitments

1,570,984

1,367,361

Present value of the commitment at
the beginning of the year

Fair value of external plan assets-347,695-314,543

Current service costs

1,223,289

1,052,818

Excess cover/shortfall
Net pension provisions
thereof assets
thereof liabilities

1,223,289

1,052,818

(238)

(540)

(1,223,527)(1,053,358)

Pension expenses included in the statement of income
consist of the following:
Dec. 31, 2023
’000
Current service costs
Plan amendments/past service costs(Profit)/losses from plan settlements/
lapsingService costs

Dec. 31, 2022
’000

41,96374,318115-2,001-80

1,079

41.99873,39654,73430,744

Interest income from external plan
assets-10,838-5,943

Net interest expenses on pension
commitments

43,89624,801

Administrative expenses and taxes

1,672

1,358

2,314

-3,577

19

Payments-56,074-50,257

58

Pension expenses

87,56699,5551

2

Effects of plan settlements/lapsing

-80

1,079

Investment funds

3

4

Revaluations recognized in equity(OCI)

137,242-640,577

Interest expenses on pension
commitments

54,73430,744100

100

Benefits paid

-54,450-81,159(138,449)(-663,741)

Settlement payments

80-3,351

Employee contributions

6,630

5,577

(1,023)(666)

138,449-663,741(6,673)(-15,059)(-8,902)(37,556)

(1)

(1)

-55

0

Effects of changes in financial
assumptions
Effects of changes in demographic
assumptions

1,023

666

Effects of experience adjustments

6,673-15,059

Effects of transfers

2,314-3,578

Effects of changes in the scope of
consolidation
Effects of foreign currency translation

Fair value of plan assets at start of
year

-55

0

6,228

14,818

1,570,984

1,367,361

Dec. 31, 2023
’000

Dec. 31, 2022
’000

314,543

363,546

Plan assets for which traded market prices exist makeup the following percentages of all plan assets:
Dec. 31, 2023
in percent

Dec. 31, 2022
in percent

Equities and similar securities

20

17

Bonds and other fixed-income
securities

16

19

Liquid assets

1

2

Investment funds

3

4

40

41

Plan assets are not invested in the Group’s own financial instruments.
A total of 90 percent (previous year: 88 percent) of
equities and similar securities are attributable to plan
assets in the United States. The pension committee
oversees plan assets in the United States and ensuresadequate investment diversification.

thereof effects from changes
to financial assumptionsof the pension commitment
thereof effects from changes
to demographic assumptionsof the pension commitment
thereof effects fromexperience adjustmentsof the pension commitment
thereof revaluation of external
plan assets
thereof other effects
Effects of changes in the scope of
consolidation
Effects of foreign currency translation

-522

2,173

Net pension provisions as of Dec. 31

1,223,289

1,052,818

Pension commitments were calculated based on thefollowing assumptions:
Dec. 31, 2023
in percent

Dec. 31, 2022
in percent

Discount rate

3.5

4.1

2.9

2.9

1.9

1.9

Interest income from external plan assets

10,838

5,943

Future salary increases

Revaluation of external plan assets

8,902-37,556

Future pension increases

Employer contributions

18,514

13,554

6,630

5,577

thereof financial income(43,896)(24,801)

Benefits paid and fund capital
payments made104

Transfers
16
60(74,754)

One-off events in 2023 resulted overall in a past service cost of € 0.1 million.

Bonds and other fixed-income
securities

Net pension provisions as of Jan. 01

Liquid assets(43,670)

144,152

17

Insurance contracts

thereof operating profit

134,569

1,645,501

20-2,001

99,555Pension expenses

1,052,818

Equities and similar securities

115

87,56644,5972,009,048

Dec. 31, 2022
’000

Dec. 31, 2022
in percent

74,318

Employee contributions

47,003

1,367,360

Dec. 31, 2023
’000

Dec. 31, 2023
in percent

41,963Pension expenses on defined
benefit plans

Pension expenses on defined
contribution plans

Dec. 31, 2022
’000

Plan amendments (past service costs)

Present value of the commitment
at end of year

Interest expense on pension commitments

Dec. 31, 2023
’000

Pension provisions have developed as follows:

The plan assets consist of the following:-18,561-46,053

Settlement payments

80-3,351

Effects of changes in scope of consolidation and transfers

00Effects of foreign currency translation

6,749

12,883

347,695

314,543

Fair value of plan assets at endof yearPension expenses were calculated using the following
assumptions:
Dec. 31, 2023
in percent

Dec. 31, 2022
in percent

Discount rate used to calculateinterest expenses

3.5

4.1

Discount rate used to calculate
current service costs

3.5

4.1

Future salary increases

2.9

2.8

Future pension increases

1.9

1.6

105

Consolidated financial statements
Notes

The percentages shown are weighted average assumptions. A discount rate of 3.61 percent was applied for Germany (previous year: 4.11 percent) and3.61 percent for the rest of the eurozone (previous
year: 4.13 percent).

Consolidated financial statements
Notes

The results of the sensitivity analysis are as follows:
Increasing effects on pension
obligations
Discount rate reduced by 100 basis
pointsDec. 31, 2023
in percent

Dec. 31, 2022
in percent

16

16

26 Other provisions
The major provision categories developed as follows:
Other non-current provisions

Personnel
expenditures
’000

Other
’000

’000

123,930

12,945

136,874

Foreign currency translation

1,963

-312

1,653

Utilization-7,270-550-7,820Jan. 01, 2022

Total

The Heubeck Mortality Tables 2018 G served as thebiometric calculation basis for measuring German defined benefit pension obligations.

Future salary increases increased
by 25 basis points

1

1

Future pension increases increased
by 25 basis points

2

2

Reversals-4,201-1,176-5,377The sensitivity analysis was conducted using the previous year’s method, with one assumption each being
modified and the rest of the assumptions staying thesame. Possible correlations between the individualassumptions or effects on plan assets from the changes
in assumptions were not factored into the analysis.

Life expectancy increased by 1 year33

Additions-2,572

8,304

5,732

Dec. 31, 2022

111,850

19,211

131,062

Jan. 01, 2023

Sensitivities related to decreasing effects on pension
obligations are comparable.
The weighted-average duration of the obligation is 16
years (previous year: 16 years).

111,850

19,211

131,062

Foreign currency translation-1,100-333-1,462

Utilization-5,230-1,988-7,219

Reversals-1,305-10,065-11,370

Additions

12,703

9,666

22,397

116,918

16,491133.408

Personnel
expenditures’000

Warranties

Other

Total

’000

’000

’000

Dec. 31, 2023

Other current provisions

Jan. 01, 2022

7,544

18,72345,986

72,249Foreign currency translation

192

-287

-438

-532

Changes in scope of consolidation

-144

0

-42

-186

Utilization-1,621-1,140-12,134-14,895

Reversals-1,263-5,132-6,234-12,629

Additions

4,017

7,768

25,33037,115

Dec. 31, 2022

8,725

19,932

52,46881,122

Jan. 01, 2023

8,725

19,932

52,46881,122Foreign currency translation

-161

-692

-1,029-1,882

Utilization-1,026-5,944-8,231-15,201

Reversals-3,034-746-3,620-7,399Additions

6,134

14,49975,22995,864

10,63827,049114,817

152,504

Dec. 31, 2023

Non-current provisions for personnel expenditures
primarily consist of provisions for partial retirement
plans and anniversary bonuses. The increase in theprovision amount discounted over the fiscal year due
to the passage of time totals € 1.5 million (previous
year: € 0.7 million). The effect of changes in the discount rate totals € 2.3 million (previous year: € -11.1
million).

106

The other provisions largely concern other human resources and social services commitments as well as
guarantee obligations. The remaining provisions areearmarked primarily for legal proceedings, outstanding invoices, repayments to customers, rebates, legal
and consulting fees, impending losses from contracts,
and insurance claims not yet processed by REVIUM
Rückversicherung AG, Melsungen.

107Consolidated financial statements
Notes

Consolidated financial statements
Notes

The majority of non-current provisions will result inpayments due within five years.
27 Financial liabilities
Dec. 31, 2023
’000

Dec. 31, 2022
’000

Non-current financial liabilities
110,334

125,848

Liabilities to banks

Profit participation rights

1,274,901

1,193,866

Liabilities from lease agreements

289,429

280,469

Liabilities from lease agreements withaffiliated companies
Liabilities from borrowings fromnon-banks

724

7,911

32,54836,211

1,707,936

1,644,305

16,093

17,263Current financial liabilities
Profit participation rights
Liabilities to banks

356,515582,862

Liabilities from lease agreements

89,665

93,153Liabilities from lease agreements withaffiliated companies

43,907

9,960

Liabilities from borrowings fromnon-banks

83,721

86,158

Liabilities from borrowings fromaffiliated companies

81,22280,295

Liabilities from bills of exchange

11,76912,945

Other financial liabilities

15,305

16,629698,197899,265

Total financial liabilities

2,406,133

2,543,570

Term structure of financial liabilities:
Dec. 31, 2023
’000

Dec. 31, 2022’000

Due within 1 year

698,197899,265

Due in 1-5 years

1,354,951

1,213,323

Due in over 5 years

352,985

430,982

2,406,133

2,543,570

Under the B. Braun Long Term Incentive Plan, theGroup issues a series of profit participation rights that
may be acquired by eligible managers on a voluntarybasis. With the issuance of profit participation rights,

108

the company grants employees profit-sharing rights
in the form of participation in the Group’s profits andlosses of in return for their investment of capital.

Interest rates on euro loans were up to 4.71 percent
per annum for non-current loans, depending on thelength of the interest rate lock-in period.

The maximum term of the profit participation rights
is 10 years. Payouts from profit participation rights
are linked to the dividends paid to shareholders in theGroup and the repayment amount is linked to theGroup’s equity.

The carrying amounts of the financial liabilities are as
follows for the currencies below:

As an incentive for the investment made by employees, an entitlement bonus of 25 percent is offered in
the form of additional assigned participation rights.
The entitlement bonus is paid to employees two years
after their investment. The additional profit participation rights are recognized as expenses in the corresponding periods.

US dollar

In August 2022, B. Braun SE and a subsidiary in the
United States extended the term of an agreementwith 12 banks for a syndicated loan of € 700 million
early, to August 2027. The loan may be used by theborrowers as revolving credit in euros, or alternatively
in partial sums in US dollars and British pounds, andbears a variable interest rate based on EURIBOR, Term
SOFR/SONIA . In addition, the agreement allows for an
adjustment to the interest margin depending on the
B. Braun Group’s net financial debt (leverage ratio).
B. Braun was also granted the right to extend thecontract by one year on two separate occasions uponconsent of the banks. The first extension (to August2028) was agreed in August 2023 with the consent of
all the banks. Under the syndicated loan agreement,
one of B. Braun’s obligations requires the company
not to exceed a maximum leverage ratio between net
financial liabilities and EBITDA . This ratio is calculated
based on consolidated figures for the B. Braun Group,
subject to adjustments as agreed under the syndicated loan. As of the reporting date, the company has
stayed well below this ratio.

Of the other financial liabilities, € 28.2 million (previous year: € 25.2 million) is secured through mortgages. The borrowings from non-banks are unsecuredloans.

Dec. 31, 2023 Dec. 31, 2022
’000
’000
Euro
Other

1,546,345

1,792,698

488,461

330,440

371,327

420,432

2,406,133

2,543,570

Carrying
amount’000

The following table shows the contractually stipulated(undiscounted) interest and principal payments for financial liabilities, other financial liabilities, and derivative financial instruments with negative fair value:

Cash outflow
within1 year’000

Cash outflow
within1-2 years’000

Cash outflow
within2-5 years’000

Cash outflow
within5-10 years’000

Cash outflow
after
10 years’000

Dec. 31, 2022
Profit participation rights

143,111

17,388

16,67456,67052,9840

1,776,730

603,537

134,206

870,926

267,7670Liabilities from lease agreements

373,622103,928

71,696

121,929

88,477

38,589Liabilities from lease agreementswith affiliated companies

17,871

12,765

7,205

690

42

0

Liabilities from borrowings
from non-banks

122,369

88,4362,451

32,7082,579

0Liabilities from ABS transactions
and other financial liabilities

36,95936,9590000Trade accounts payable642,240642,218

29

0

0

0

Liabilities from derivative
financial instruments

11,936

10,742

58

1,136

0

0

Liabilities to banks

Dec. 31, 2023
Profit participation rights

126,427

16,20815,69755,74239,2940Liabilities to banks

1,631,416

378,313

196,574

940,660

210,1890Liabilities from lease agreements

379,094

103,935

73,633

134,876

95,56931,822

Liabilities from lease agreementswith affiliated companies

44,631

46,263

246

485

0

0

Additionally, a subsidiary in Malaysia concluded a bilateral agreement in November 2023 for a € 50 million credit line with a 5-year term.

Liabilities from borrowings
from non-banks

116,269

87,40924,195

7,979

867

204

Liabilities from ABS transactions
and other financial liabilities

42,77342,77300

00

As of December 31, 2023, the Group had unused credit lines in different currencies totaling € 1.1 billion(previous year: € 1.3 billion).

Trade accounts payable

584,931584,591

339

0

0

0

Liabilities from derivative
financial instruments

8,071

6,898

68

1,105

0

0

109

Consolidated financial statements
Notes

Consolidated financial statements
Notes

All instruments held as of December 31, 2023 forwhich payments had already been contractuallyagreed upon are included. Amounts in foreign currency were each translated at the closing rate on thereporting date. The variable interest payments arisingfrom the financial instruments were calculated using
the last interest rates fixed before December 31,

2023. Financial liabilities that can be repaid at any
time are always assigned to the earliest possible period.
28 Additional disclosures on financial instruments
Carrying amounts and fair value by measurement category/classification:

Measurement
category
per IFRS 9

Carrying
amountDec. 31, 2023
’000

Fair value
Dec. 31, 2023
’000

Carrying
amountDec. 31, 2022
’000

Fair value
Dec. 31, 2022
’000

AssetsTrade receivables

AmC

1,345,155-

1,275,786-

FVPL

34,694

34,69439,39439,394AmC

122,181-

100,857-

FVOCIw/o

26,59826,59870,90170,901Other receivables
Other financial assets

AmC

14,602

14,602

13,704

13,704

FVPL

23,92323,885

13,866

7,326

Financial assets held for trading

FVPL

38,60838,60835,57835,578Derivatives not in a hedge

FVPL

20,556

20,55625,30925,309Derivatives in a hedge

n.a.

0

0

390

390

Cash and cash equivalents

AmC

105,831-

113,494-

Profit participation rights

AmC

126,427-*

143,111-*

Liabilities to banks

AmC

1,631,416

1,572,281

1,776,728

1,699,389

Liabilities from lease agreements

n.a.

423,725-

391,493-

Liabilities from borrowings from non-banks

AmC

116,269

115,733

122,369

121,660

Other financial liabilities

AmC

11,770-12,945-Trade accounts payable

AmC

584,931-642,240-

Other liabilities

AmC

343,524-

349,743-

Purchase price liabilities from corporate mergers

FVPL

0

0

12,544

12,544

Derivatives not in a hedge

FVPL

7,439

7,439

10,693

10,693

Derivatives in a hedge

n.a.

633

632

1,243

1,243

Amortized cost

AmC

1,587,769

14,602

1,503,841

13,704

Fair value through profit or loss

FVPL

117,781

117,743

114,147

107,607

FVOCIw/o

26,59826,59870,90170,901

Amortized costAmC

2,814,337

1,688,014

3,047,136

1,821,049

Fair value through profit or loss

FVPL

7,439

7,439

23,237

23,237

AmC Financial assets or liabilities measured at amortized cost | FVPL
Financial assets or liabilities measured at fair value through profit &loss | FVOCIw/o Financial assets measured at fair value through othercomprehensive income without recycling* Interest on the rights is linked to the dividends paid to shareholders
in the Group and the repayment amount is linked to the Group’s equity. A fair value for this instrument cannot be reliably determined.

Liabilities

Net gains or losses by measurement category are as
follows:
Net gains or losses fromfinancial assets and liabilities

2023
’000

2022
’000

- Measured at amortized cost

-5,042-5,066- Equity instruments measured inother comprehensive income as
FVOCI

0

-201

- Measured at FVPL by regulation

8,562

371

3,520

-4,896

Trade receivables totaling € 34.7 million were designated at fair value through profit and loss since they
are held for sale as part of an asset-backed securities
program, meaning they do not meet the business model condition for classification as financial assets
measured at amortized cost.
Financial investments in foreign currency instruments
totaling € 14.6 million were classified as financial assets measured at amortized cost since both the relevant business model condition and the cash flow
condition are met. These investments are in coveredbonds and loans.
Financial investments in equity instruments totaling€ 26.6 million were classified at fair value throughother comprehensive income since, as strategic, longterm investments, they are not held with the intention of realizing a short-term gain. These are primarily
fundbased corporate financing investments. Dividends in the amount of € 23.7 million were recognized from these financial investments in 2023.
Other assets comprise other receivables and other financial assets in the amount of € 214.7 million (pre-vious year: € 154.4 million) as well as other loans in
the amount of € 29.7 million (previous year: € 21.5
million).
Cash and cash equivalents, trade receivables andother receivables predominantly have short residual
maturities, which is why their carrying values as of
the reporting date are approximately fair value.
Trade accounts payable, other financial liabilities andfinancial debts typically have short residual maturities; the recognized figures constitute approximate
fair value.
Fair value for liabilities to banks and other creditors
are calculated as the cash value of the payment associated with the debt based on the currently applicable interest yield curve. In determining the fair value,
the credit risk has been taken into account.
The table below shows financial instruments where subsequent measurement and accounting is at fair value.
These are categorized into levels 1 to 3, depending on
the extent to which fair value can be measured:− Level 1: Measurement at fair value based on (unadjusted) quoted prices on active markets for identicalfinancial assets or liabilities.
− Level 2: Measurement at fair value based on parameters, which are not quoted prices for assets or
liabilities as in Level 1, but which are either directly derived from them (that means, as prices) or indirectly derived from them (that means, derived
from prices).
− Level 3: Measurement at fair value using models
that include parameters not based on observable
market data to value assets and liabilities.

Summary by measurement category:
AssetsFair value through other comprehensive
income without recycling
Liabilities

110

111

Consolidated financial statements
Notes

Consolidated financial statements
Notes

Level 1’000

Level 2’000

Level 3
’000

Total
’000

Dec. 31, 2022

The table below shows financial instruments not measured at fair value whose fair value is still specified.
Level 1’000

Level 2’000

Level 3
’000

Total
’000

13,7040013,704

Liabilities to banks

01,699,389

0

1,699,389

Liabilities from borrowings from non-banks

0

121,660

0

121,660

01,821,049

0

1,821,049

14,6020014,6020

1,572,281

0

1,572,281

Financial assets in category: FVPL
Derivative financial assets not in a hedge

025,309025,309Derivative financial assets in a hedge

0

390

0

390

Other financial assets

13,86600

13,866

Financial assets held for trading

35,5780035,578039,394

039,394070,901070,901

Purchase price liabilities from corporate mergers

00-12,544-12,544

Derivative financial assets not in a hedge

0-10,6930-10,693

Derivative financial assets in a hedge

0-1,2430-1,24349,444

124,058-12,544

160,958

Trade receivables

Dec. 31, 2022
Other financial assets

Financial assets in category: FVOCIw/o
Securities
Financial liabilities of category: FVPL

Financial assets in category: FVPL
Derivative financial assets in a hedge

020,556

0

0

0

0

0

23,9230

023,923Financial assets held for trading

38,6080038,608034,6940

34,694026,598026,598Financial assets in category: FVOCIw/o
Securities
Financial liabilities of category: FVPL
Purchase price liabilities from corporate mergers

0

0

0

0

Derivative financial assets not in a hedge

0-7,4390-7,439Derivative financial assets in a hedge

0

-632

0

-632

62,53173,777

0

136,308

Purchase price liabilities from corporate mergers categorized as Level 3 are conditional purchase priceliabilities recorded at net present value, the final
amount is partially performance-dependent. The
amount stated represents the fair value that was calculated for the actual purchase price liability on thebasis of the agreed adjustment parameters.

112

Liabilities to banks
Liabilities from borrowings from non-banks

0115,733

0

115,7330

1,688,014

0

1,688,014

Net amount

1,501,364

Corresponding amounts
that were not offset

20,556

Other financial assets
Trade receivables

Other financial assets

The following financial assets and liabilities are subject to offsetting arrangements:

Dec. 31, 2023
Derivative financial assets not in a hedge

Dec. 31, 2023

The € 12.5 million decrease in liabilities compared tothe previous year is due to the settlement of liabilities
recognized directly in equity (€ -1.2 million), the derecognition of liabilities through profit and loss (€ -8.1
million), currency translation of liabilities recognizedthrough profit and loss (€ -0.2 million) and translationdifferences of recognition through other comprehensive income at the start of the year (€ -3.0 million).

Grosscarrying
amount’000

OffsetamountNet carrying
amountFinancial
instruments

’000

’000

’000

Financialcollateral
held
’000

1,503,841

0

1,503,841-2,52447’000

Dec. 31, 2022
Assets measured at cost
Assets measured at fair value
thereof FVPL
thereof FVOCIw/o

185,0480

185,048-24,0540

160,994(114,147)(0)(114,147)(-24,054)(0)(90,093)(70,901)(0)(70,901)(0)(0)(70,901)

Financial liabilities at amortized cost

3,047,136

03,047,136-21,123

0

3,026,013

Liabilities measured at fair value (FVPL)

23,237

023,237-5,4850

17,752

1,587,769

0

1,587,769-770

0

1,586,999

Dec. 31, 2023
Assets measured at cost
Assets measured at fair value

144,3790144,379-19,710

0

124,669

thereof FVPL

(117,781)(0)(117,781)(-19,710)(0)(98,071)

thereof FVOCIw/o(26,598)(0)(26,598)(0)(0)(26,598)

2,814,337

02,814,337-17,64902,796,688

7,439

0

7,439

-2,831

0

4,608

Financial liabilities at amortized cost
Liabilities measured at fair value (FVPL)

113

Consolidated financial statements
Notes

Consolidated financial statements
Notes

Offsetting of amounts that were not offset is permitted in the event of bankruptcy or default of one of thecontractual parties.
29 Trade accounts payable and other liabilities
Dec. 31, 2023
’000

Dec. 31, 2022
’000

339

29

Liabilities to social security providers

11,152

9,667

Liabilities from derivative financial
instruments

1,173

1,194

Liabilities to employees, management
and shareholders

77,84366,718Non-current liabilities
Trade accounts payable

Accruals and deferrals

Other liabilities
Subtotal other liabilities
thereof from financial liabilities

10

90,16977,579Dec. 31, 2022
’000

(6,239)(4,584)

Guarantees

22,36823,299Contractual performance guarantees

53,56341,38380,29067,655

Liabilities to employees, management
and shareholders

355,550

350,771

Accruals and deferrals

22,76829,985

114,255

129,907538,862551,690

6,899

10,7424,022

0369,662394,298

380,583

405,040

919,445956,730(344,091)(368,357)

1,601,280

1,681,455

Other liabilities mainly include remaining payments
related to company acquisitions, liabilities from ABS
transactions, bonus commitments and liabilities related to outstanding invoices.

114

Dec. 31, 2023
’000

2,973

41,027

Total liabilities

30 Contingent liabilities
Liabilities result exclusively from obligations to third
parties and consist of:

4,359

642,211

thereof financial liabilities

4,021

Uncertain liabilities

46,289Subtotal other liabilities

3,218

82,485584,592

Other liabilities

803

Other liabilities

96,904

Liabilities to social security providers

Liabilities held for sale

Trade accounts payable

4,906

Trade accounts payable

Liabilities from derivative financial
instruments

Dec. 31, 2023
’000

6,735

Current liabilities

Other tax liabilities

Liabilities held for sale comprise liabilities related tothe sale of Aesculap division assets for developing celltherapies and biomaterials for restoring damaged cartilage tissue (for more, see Note 19), and apply to theindividual liability classes as follows:

All cases relate to potential future obligations, which
may arise upon the occurrence of corresponding
events and are entirely uncertain as of the reporting
date. During the normal course of business, theB. Braun Group is subject to potential obligations
stemming from lawsuits and asserted claims. Estimates of possible future liabilities of this kind are uncertain. The uncertainties relate to the assessment of theprobability and the determination of the amount of
resources that would be expended. No material negative consequences for the economic or financial situation of the B. Braun Group are anticipated.
Lawsuits have been filed against B. Braun companies
in the United States in relation to the ethylene oxide
sterilization process in Allentown, PA , United States.
In 2020, a class-action lawsuit was filed claiming residents were at higher risk of cancer, though the case
had not been adjudicated as of the reporting date.
There are also 91 civil suits in progress in the UnitedStates as of December 31, 2023, which may result inpayments for damages. Proceedings for the first ofthese suits may begin in June 2024. These suits allege
that emissions from the facility have caused personal

injury to the plaintiffs. B. Braun considers these allegations unfounded.
31 Other financial liabilities
As of the reporting date, obligations to acquire intangible assets total € 0.6 million (previous year: € 0.6
million) and obligations to acquire property, plant andequipment total € 176.6 million (previous year: € 254.9
million).
32 Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial risks. These include currency, interest rate, credit
and liquidity risks. The B. Braun Group’s policy is tominimize these risks via systematic risk management,
which involves the use of derivative financial instruments.
The Group Treasury department manages risk according to guidelines issued by the Management. Group
Treasury also identifies, measures and hedges financial risks in close cooperation with the Group’s operating units. The Management provides written
principles for Group-wide risk management together
with written policies covering specific areas such as
foreign exchange, interest rate and credit risk as wellas the use of derivative and non-derivative financial
instruments.
a) Market/currency risk
The Group operates internationally and is therefore
exposed to currency risk arising from fluctuations in
the exchange rates between various foreign currencies, primarily the US dollar. Risks arise when futuretransactions or assets or liabilities recognized in thestatement of financial position are denominated in acurrency that is not the functional currency of thecompany. To hedge such risks, the Group uses forward
foreign exchange contracts.
The Group‘s risk management policy is to hedge assets
and liabilities recognized in the statement of financial position. The Group therefore performs a scenario
analysis to ascertain the impact of changes in exchange rate on the Group‘s earnings and shareholders‘
equity (before taxes in each case). This analysis takes
into account balance sheet items (particularly accounts receivable and payable from operations as well

as loans and borrowings) along with foreign exchangetransactions executed in order to hedge balance sheet
items and future cash flows denominated in foreign
currencies (cash flow hedges).
If the exchange rate of the US dollar compared toother currencies on December 31, 2023 had been 10
percent stronger (weaker), profit before taxes—with
all other variables remaining constant—would havebeen € 1.6 million higher (lower; previous year:€ -0.5 million). If the euro rises (falls) in value by 10
percent against all other currencies, the changes inthe value of the cash flow hedges would have the effect of increasing (decreasing) shareholders‘ equity by
about € 0.4 million (previous year: € 2.4 million).
b) Interest rate risk
As the Group has no significant interest-bearing assets, changes in market interest rates affect its income and operating cash flow primarily via their impact
on its interest-bearing liabilities. The liabilities withvariable interest rates expose the Group to cash flowinterest rate risk. Fair value interest rate risk arises
from fixed-interest liabilities. Group policy is to maintain approximately 50 percent of its borrowings in
fixed-rate instruments.
In 2022, the Group also partially hedged its cash flowinterest rate risk from planned fixed-rate financing
with interest rate swaps. For these interest rate
swaps, the Group reached an agreement with otherparties to swap an agreed fixed interest rate for avariable reference interest rate, each in reference tothe agreed nominal volume, at certain intervals. Theinterest rate swaps agreed for this purpose were terminated ahead of schedule when the underlying
transaction occurred. The termination amount will be
spread out through profit and loss over the term of
the agreed financing.
If market interest rates had been 100 basis points
higher as of December 31, 2023, profit before taxes—
with all other variables remaining constant—would
have been approximately € -6.1 million lower for thefull year (previous year: € -5.6 million). If market interest rates had been 50 basis points lower as ofDecember 31, 2023, profit before taxes—with all othervariables remaining constant—would have been
approximately € 3.0 million higher for the full year115

Consolidated financial statements
Notes(previous year: € 2.8 million). This would have been
mainly attributable to higher or lower interest expenses for variable-rate interest-bearing financial liabilities. The other components of equity would havechanged only slightly.
c) Credit risk
The Group has no significant concentrations of credit
risk related to trade receivables. It has organizationalguidelines that ensure that products are sold only tocustomers with a good payment history. Contracts onderivative financial instruments and financial transactions are solely concluded with financial institutions
with a good credit rating and, as a rule, contain a pro-’000

Consolidated financial statements
Notes

vision that allows mutually offsetting positive andnegative fair market values in the event of the insolvency of a party.
The maximum credit risk for each measurement category of financial assets corresponds to its carrying
amount. Trade receivables are partly secured withreservation of title, which reduces the maximum default risk in this assessment category by € 29.1 million (previous year: € 28.3 million).
The gross carrying amounts for financial assets ineach default risk class are as follows:

Level 1

Level 2

Level 3

Simplified
approach12-month
ECL

Lifetime ECL(nonimpaired)

Lifetime ECL(impaired)

Lifetime ECL

Dec. 31, 2022
Not at risk

228,056001,017,660

At risk

000345,582

Total

228,056001,363,242

Dec. 31, 2023
Not at risk

242,614001,100,329

At risk

000345,588

Total

242,614001,445,917d) Liquidity risk
Prudent liquidity risk management includes maintaining sufficient reserves of cash as well as ensuring
the availability of funding through an adequate
amount of committed lines of credit. Due to the dynamic nature of the environment in which the Group
operates, Group Treasury aims to maintain the necessary flexibility in funding by ensuring sufficient unused credit lines are available.
Capital risk management
The Group’s capital management seeks to ensure continuation as a thriving, independent, family-run company in order to guarantee that shareholders continue
to receive dividends and other interested parties
receive the amounts owed them as well as main-

116

Changes in the fair value of derivative financial instruments that represent economically effective hedges
under the Group‘s strategy are recognized throughprofit and loss unless they are used in hedge accounting. When applying hedge accounting for cash flow
Nominal volume

Forward foreign exchange contracts

Fair value

1,078,112

1,371,939

6,486

22,907

13,424

14,341

8,000

9,500

0

0

-952

-954

1,086,112

1,381,439

6,486

22,907

12,472

13,387

Embedded derivatives

Depending on the fair value on the reporting date,derivative financial instruments are included underother assets (if fair value is positive) or other liabilities(if fair value is negative).
The Group‘s risk management policy was to hedge up
to 60 percent of the net cash flow expected over thefollowing 12 months on a continuous basis in key currencies from the B. Braun Group‘s ordinary business
operations. In December 2019, it was decided not tocontinue to pursue this hedging strategy. The layered
hedging of expected and not yet recognized receivables and payables in the Group‘s key currencies that it
had previously implemented was only continued inisolated instances until June 2023. This is why theGroup has yet to designate forward foreign exchange
contracts to hedge highly probable future foreign
currency receipts and payments not in the functional
currency, which are expected in the future:
Nominal volume
ISO code

Derivative financial instruments
The fair value of derivative financial instruments is
calculated using directly observable market input factors. The fair value of interest rate swaps is calculated
from the net present value of estimated future cash
flows using the relevant yield curve on the reporting
date. The fair value of forward foreign exchange contracts is calculated based on forward exchange rates
on the reporting date.

Nominal volume
Residual term > 1 year

Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
’000
’000
’000
’000
’000
’000

taining an optimal equity structure to reduce the costof capital.
The B. Braun Group is primarily financed by borrowings by B. Braun SE, the majority of these take theform of bonded loans.

hedges, the fair market value changes from the effective portion are recognized in equity. The fair valuechanges in hedging instruments more or less match
the fair value changes in the hedged underlying
transactions.

EUR/BRL

23,800All hedges were effective. The reserve for cash flow
hedges for these forward foreign exchange contracts
reported in equity under other reserves developed
over the fiscal year as follows:
2023
’000

2022
’000

As of Jan. 01

-854

-436

Profit or loss from effective hedges-2,406-5,256

Reclassifications due to altered expectations regarding occurrence of underlying
transaction

n.a.

n.a.

Reclassifications due to realization ofunderlying transaction

2,669

4,877

Reclassification due to a basis
adjustment
As of Dec. 31

n.a.

n.a.

-632

-854

Average hedging rate

Dec. 31, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022
’000
’000
’000
’000
4,400

(previous year: € 0.4 million) as other assets and of€ 0.6 million (previous year: € 1.2 million) as otherliabilities as part of its cash flow hedges.

5.85135.9113The purpose of the hedges is to reduce the volatilityof foreign exchange receipts and payments (and theirmeasurement) with respect to foreign exchange risk.
The effectiveness of hedges is measured prospectively
using the critical terms match method and retroactively using the dollar offset method. As of the reporting date, the hedges had no ineffective portions.
As of December 31, 2023, the Group had designatedhedging instruments with a fair value of € 0.0 million

The occurrence of the underlying transaction resulted
in a reclassification from other reserves to cost of
goods sold.
B. Braun expects no gains, and losses totaling€ 0.6 million recognized in equity to be transferred tothe statement of income within the next 12 months.
The ineffective portion of changes in value is recognized directly in the statement of income under financial income. As in the previous year, there were no
reclassifications from other reserves due to a hedge

117Consolidated financial statements
Notesthat was terminated or became ineffective, or a cash
flow hedge that was terminated early.
In addition, the Group allocates currency hedges tocertain intercompany loans that are not contracted in
the functional currency of each Group company. The
earnings from the hedges from internal commercial
lending is shown in net interest income.

Consolidated financial statements
Notes

The following transactions were completed with related parties:
2023
’000

2022
’000

Related parties

2,108

1,459

thereof B. Braun Holding GmbH & Co. KG

(27)

(13)

(2,081)(1,446)

Sale of goods and services

thereof associates

As in the previous year, there were no ineffective portions of the change in value recognized in the statement of income under net financial income.
33 Related-party transactions
Related-party transactions are disclosed for persons orbusinesses not already included as consolidated companies in the consolidated financial statements. A person or a close member of that person’s family is related
to a reporting party if that person has control or joint
control over the reporting party, has significant influence over the reporting party or is a member of key
management personnel of the reporting party. A party
is a related party if that party and the reporting party
are members of the same group, or one party is anassociate or joint venture of the other party.
The B. Braun Group purchases materials, inventories
and services from numerous suppliers around theworld in the ordinary course of its business. These
suppliers include a small number of companies inwhich the Group holds a controlling interest and companies that have ties to members of B. Braun SE’s Supervisory Board. Business transactions with suchcompanies are conducted under normal market terms.
From the perspective of the B. Braun Group, these are
not materially significant. The B. Braun Group did not
engage in any material transactions with related parties that were in any way irregular and does not intend to do so in the future.

Goods and services purchased
Related parties

74,851

70,165

thereof B. Braun Holding GmbH & Co. KG(60,818)(61,648)

thereof associates(13,000)(7,904)

1,033

614

74,851

70,166

Key management personnel

Outstanding items from the purchase/sale of goods
and services and from borrowings at the end of the
fiscal year:
Dec. 31, 2023 Dec. 31, 2022
’000
’000
Outstanding items from the sale ofgoods and services
Related parties

11,877

8,210

thereof B. Braun Holding
GmbH & Co. KG(2,942)(2,335)(0)(0)

thereof unconsolidated subsidiaries of
B. Braun Holding
thereof joint ventures
thereof associates
Procurement obligations

(67)

(77)

(8,868)(5,798)071

Outstanding items from goods
and services purchased and fromborrowings
Related parties

112,016

132,274

thereof B. Braun Holding
GmbH & Co. KG(91,043)(103,145)

thereof unconsolidated subsidiaries of
B. Braun Holding

Key management personnel are members of the Executive Board and members of the Supervisory Boardof B. Braun SE . In addition to B. Braun Holding GmbH& Co. KG, the affiliated Group includes joint venturesand companies controlled by key management personnel or their close family members. The names ofassociated companies and joint ventures are listed
under major shareholdings.
The following items in the statement of financial position contain outstanding balances with related parties:− Other assets− Financial liabilities− Other liabilities
The loans granted by related parties are short-term.
Their interest rates are based on covered bond yields.
There are no provisions for doubtful accounts associated with outstanding balances and no expenditures
are recognized for impaired receivables from relatedparties.
Please see Note 27 for details of leasing liabilities torelated parties.
Remuneration for members of the Executive Board
consists of a fixed and a variable, performance-related component. They also receive pension commitments and benefits in kind. Benefits in kind consist
mainly of the value assigned for the use of company
cars under German tax laws.
In addition to the duties and performance of Executive Board members, the criteria for remuneration
include the Group’s financial position, results and future projections.
The total remuneration of Executive Board members
consists of the following:

(0)

(0)

thereof joint ventures(6,005)(14,786)

thereof associates(14,968)(14,343)

Key management personnel

55,94754,479Fixed remuneration

2,430

2,427

186,753

Variable renumeration

3,286

1,698

Pension expense

782

855

Bonuses

400

395

167,963

2023
’000

Other

118

2022
’000

819

194

7,717

5,569

Of the total, € 0.3 million was attributable to the CEO
as fixed remuneration and € 1.0 million as variable remuneration from profit-sharing.
Pension commitments totaling € 9.1 million exist to
active board members. Profit-sharing bonus commitments to board members reported under liabilities to
employees, board members and shareholders total€ 3.5 million. A total of € 22.1 million has been allocated for pension commitments to former board members and their surviving dependents. Total remuneration amounted to € 1.2 million. Supervisory Board
remuneration totaled € 1.0 million.
The remuneration of Supervisory Board members isgoverned by the articles of incorporation and isapproved at the annual shareholders‘ meeting. Remuneration made to employee representatives on the
Supervisory Board for work outside their supervisory
activities are in line with the market standards.
The Group has not made any loans to current or former members of the Executive Board or Supervisory
Board. Liabilities stemming from profit participationrights for board members totaled € 11.5 million (previous year: € 15.2 million). See Note 27 for detailed
information about bonuses. The € 3.3 million (previous year: € 1.7 million) in variable remuneration still
owed to the Executive Board will not be paid until the
consolidated financial statements are approved thefollowing year.
The members of the Executive Board and Supervisory
Board are listed on pages 4 and 5 and on page 133.
Notes to the consolidated statement of cash flows
The consolidated statement of cash flows detailschanges in the B. Braun Group’s cash and cash equivalents during the course of the fiscal year. In accordance with IAS 7, cash flows are categorized as thosefrom operating, investing and financing activities.
Cash flow from operating activities is calculated using
the indirect method.
34 Gross cash flow and cash flowfrom operating activities
Gross cash flow, totaling € 820.8 million, represents
the cash surplus from operating activities before any
funds are committed and is € 88.5 million below the119Consolidated financial statements
Notes

Consolidated financial statements
Notes

previous year’s amount. The change is due primarily
to the higher operating result as well as the change in
non-current provisions, and other non-cash expenses
and income.

Investments made during the fiscal year were fully
covered by cash flow from operating activities. The
remaining free cash flow was € 253.6 million (previous year: € 153.8 million).

Cash flow from operating activities totaling € 719.0
million represents changes in current assets, current
provisions and liabilities (excluding financial liabilities).

Additions to property, plant and equipment as well as
intangible assets from leases do not result in cash
outflows and are therefore not included under investing activities. Additions in the fiscal year totaled€ 160.1 million (previous year: € 66.3 million).

The increase in liabilities and short-term provisions inaddition to the decrease in inventories and less theincrease in receivables and other assets have led to acash outflow of € 101.8 million. Net cash from operating activities is, therefore, € 0.1 million above theprevious year’s level.
35 Cash flow from investing activities
A total of € 567.7 million was spent in 2023 on thepurchase of property, plant and equipment, intangible assets, financial assets, and business acquisitions.
This was offset by proceeds from the sale of property,
plant and equipment, and the disposal of holdings(€ 78.1 million), as well as dividends and similar income received (€ 24.3 million), resulting in a net cash
outflow from investing activities of € 465.4 million.
Compared to the previous year, this resulted in a
€ 99.8 million decrease in cash outflow.

Jan. 01,2023

36 Cash flow from financing activities
In fiscal year 2023, cash outflows from financing activities were € 320.3 million (previous year: € 112.7
million outflow). The net balance of cash flowing inand out for borrowing and repayment of debt was€ -252.3 million (previous year: € -69.7 million). Dividend payments and capital contributions by minority
shareholders result in a total cash outflow of € 52.4
million (previous year: € 44.0 million). At € 207.6 million, cash outflows are above the previous year’s level.
This can be attributed to higher debt repayments.

Cash changes

Non-cash changes

No facts came to light after completion of the fiscal
year through to the date of preparation of the consolidated financial statements that have a material effect on net assets, financial position and earnings
situation for fiscal year 2023.

As of December 31, 2023, restrictions on cash availability totaled € 0.0 million (previous year: € 0.2 million). These restrictions are primarily related to security deposits and collateral for tender business.

Acquisitions

Exchange
gains (losses)

Dec. 31,
2023

’000

’000

’000

’000

Non-current financial liabilities

1,230,077

83,9050-6,53301.307,449

Current financial liabilities

778,889-219,942

0-10,4150548,532

Non-current leasing liabilities

288,380-148,7900150,5630

290,153

Current leasing liabilities

103,11333,5560-3,097

0133,572

Non-current profit participation rights

125,848

2,077

0

0

-17,591

110,334

Current profit participation rights

17,263-17,6670

0

16,497

16,093

2,543,570-266,8610

130,518-1,094

2,406,133

120

Subsequent eventsThe liability items in the consolidated statement offinancial position in which associated payments wererecognized in cash flows from financing activities
changed during the fiscal year as follows:

Change in
the fair
value
’000

Total liabilities fromfinancing activities

37 Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits and other short-term highly liquid financial assets with residual maturities of threemonths or less that are subject to no more than insignificant fluctuations in value.

’000

121

Consolidated financial statements
Independent auditor's report

Consolidated financial statements
Independent auditor's report

Independent auditor's report

Other information

To B. Braun SE, Melsungen

The legal representatives are responsible for the documents referred to as other information.

Audit opinion

This includes the Annual Report—without further cross-references to external information—with the exceptionof the audited consolidated financial statements, the audited Group management report and our auditor'sreport.

We have audited the consolidated financial statements of B. Braun SE, Melsungen, and its subsidiaries (theGroup) – comprising the consolidated statement of financial position as of December 31, 2023, the consolidated
statement of income (loss), the consolidated statement of comprehensive income, the consolidated statementof cash flows and the consolidated statement of changes in equity from January 01 to December 31, 2023 andthe notes to the consolidated financial statements, including significant disclosures on accounting policies. In
addition, we have audited the Group management report of B. Braun SE for the fiscal year from January 01 to
December 31, 2023.
In our judgment, based on the information obtained during the audit,t he accompanying consolidated financial statements comply, in all material respects, with the IFRS
as adopted by the EU, and the additional requirements of German commercial law pursuant to§ [Article] 315e Abs. [paragraph] 1 HGB [Handelsgesetzbuch: German Commercial Code] and, incompliance with these requirements, provide a true and fair view of the net assets, and financial
position of the Group as of December 31, 2023, and of its results of operations for the financial year
from January 01 to December 31, 2023, and■ t he accompanying Group management report as a whole provides an appropriate view of the Group’s
position. In all material respects, this Group management report is consistent with the consolidated
financial statements, is compliant with German legal requirements and accurately presents theopportunities and risks of future development.
■

Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the Group management report.
Basis for the audit opinions
We conducted our audit of the consolidated financial statements and of the Group management reportin accordance with § 317 HGB and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors inGermany] ( IDW ). Our responsibilities under those requirements, principles and standards are further described in
the “Auditor’s responsibilities for the audit of the consolidated financial statements and of the Group management report” section of our auditor’s report. We are independent of the Group entities in accordance with therequirements of German commercial and professional law, and we have fulfilled our other German professional
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements
and on the Group management report.

The opinions on the consolidated financial statements that appear in our auditor's report do not apply to thisother information and, therefore, we offer neither an opinion nor any other type of audit conclusion in thisregard.
As part of our audit, it was our responsibility to read through the other information and assess whether it■■

contains material discrepancies with the consolidated financial statements, the Groupmanagement report or the facts determined during our audit, orotherwise appears to be materially misrepresented.

Responsibility of the executive directors and the supervisory board for the consolidated
financial statements and the Group management report
The executive directors are responsible for the preparation of the consolidated financial statements that comply,
in all material respects, with IFRS as adopted by the EU and the additional requirements of German commercial
law pursuant to § 315e Abs. 1 HGB and that the consolidated financial statements, in compliance with theserequirements, give a true and fair view of the net assets, financial position, and results of operations of theGroup. In addition the executive directors are responsible for such internal control as they have determined
necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the executive directors are responsible for assessing theGroup’s ability to continue as a going concern. They also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are responsible for a financial reporting based on the going
concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there
is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of the Group management report that,as a whole, provides an appropriate view of the Group’s position and is, in all material respects, consistent withthe consolidated financial statements, complies with German legal requirements, and appropriately presents
the opportunities and risks of future development. In addition, the executive directors are responsible for sucharrangements and measures (systems) as they have considered necessary to enable the preparation of a Groupmanagement report that is in accordance with the applicable German legal requirements, and to be able toprovide sufficient appropriate evidence for the assertions in the Group management report.
The supervisory board is responsible for overseeing the Group’s financial reporting processes for the preparationof the consolidated financial statements and of the Group management report.

122

123

Consolidated financial statements
Independent auditor's report

Consolidated financial statements
Independent auditor's report

■


draw
attention in the auditor’s report to the related disclosures in the consolidated financial statements and in the Group management report or, if such disclosures are inadequate, to modify our
respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to be able
to continue as a going concern.

■



■



■



■

P erform audit procedures on the prospective information presented by the executive directors in theGroup management report. Based on sufficient appropriate audit evidence, we evaluate, in particular,
the significant assumptions used by the executive directors as a basis for the prospective information,and evaluate the proper derivation of the prospective information from these assumptions. We do
not express a separate audit opinion on the prospective information and on the assumptions used asa basis. There is a significant unavoidable risk that future events will fundamentally differ from theprospective information.

Auditor‘s responsibility for the audit of the consolidated financial statements and theGroup management report
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and whether the Groupmanagement report as a whole provides an appropriate view of the Group’s position and, in all material respects,
is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with
the German legal requirements and appropriately presents the opportunities and risks of future development,
as well as to issue an auditor’s report that includes our audit opinions on the consolidated financial statements
and on the Group management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith § 317 HGB and in compliance with German Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer ( IDW ) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements and this Group management report.
We exercise professional judgement and maintain professional skepticism throughout the audit.
We also:
■ Identify
and assess the risks of material misstatement of the consolidated financial statements andof the Group management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our audit opinions. The risk of failing to discover material misstatement resulting fromfraud is greater than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal controls.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present theunderlying transactions and events in a manner that the consolidated financial statements give a trueand fair view of the net assets, financial position and results of operations of the Group in compliancewith IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant
to § 315e Abs. 1 HGB.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express audit opinions on the consolidated financial
statements and on the Group management report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinions.

Evaluatethe consistency of the Group management report with the consolidated financial
statements, its conformity with German law, and the view of the Group’s position it provides.

Obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the Groupmanagement report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these systems.

We communicate with those in charge of oversight such matters as the planned scope and timing of the audit
and significant audit findings, including any deficiencies in internal controls that we identify during our audit.

■Evaluate
the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.

PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft		■Conclude on the appropriateness of the executive directors’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required tosgd. 				sgd.
Daniela Geretshuber
Michael Conrad
German Public Auditor		German Public Auditor■

Kassel, Germany, February 29, 2024

Disclaimer: Translation - the German text is authoritative.

124

125

Annual Report 2023
Glossary

Annual Report 2023
Glossary

Glossary
A
Active sourcing
Umbrella term for various methodsof proactively recruiting potential
employees.
Apheresis
Process of separating constituentsof the blood or removing pathogenic substances from the blood.
ASEAN
Association of Southeast Asian
Nations, an association in Jakarta,
Indonesia, that works to improve
economic, political and social
cooperation.

Asset-backed securities
A specific form of asset securitization in convertible securities withan asset-backed securities corporation.
B
BVMed
German Medical Technology
Association. Special interest grouprepresenting German medical
technology companies.

C
CAPS
Central Admixture Pharmacy
Services. Network of compounding
pharmacies that prepares sterile
drugs in the US.

Cash poolingCentralization of Group liquidity.
CIW
Abbreviation for Coverage in
Weeks. A key performance indicator referring to delivery capacity

126

covered by the current available
inventory as measured in weeks.
CMS
Centers for Medicare & Medicaid
Services. US federal agency foradministering government healthcare programs.
CO₂eq neutrality
CO₂eq neutrality means that theuse of a fuel or a human activity(such as a flight or an event) has
no impact on the concentrationof green house gas in the atmosphere.

CoEs
Abbreviation for Centers of
Excellence. Centers in the B. Braun
organization where research,development, production andmarketing are bundled for specificproduct groups.
CSRD
Corporate Sustainability Reporting
Directive. EU sustainability reporting directive for companies.
CSSD
Central sterile services department. In a medical care facility,
this department cleans, disinfects,
sterilizes and packages multi-use
medical devices.

D
DPO
Abbreviation for Days Payable
Outstanding. A key performanceindicator referring to the period oftime between the date an invoice
is received and the date thatinvoice is paid.
DSO
Abbreviation for Days Sales
Outstanding. A key performanceindicator referring to the period oftime between the invoicing date
and the date payment is received.

E
EBIT
Abbreviation for Earnings Before
Interest and Taxes. Key performance indicator.
EBITDA
Abbreviation for Earnings Before
Interest, Taxes, Depreciation andAmortization. Key performanceindicator.
EBITDA margin
A company's EBITDA expressed asa percentage of its total sales. Key
performance indicator.
EHDS
European Health Data Space.
Regulation on creating a European
governance framework for health
data.
EMAS
Abbreviation for Eco-Management
and Audit Scheme. The Eco-Management and Audit Scheme wasdeveloped by the EU to set standards for environmental management systems.

Equity method
The equity method is an accounting practice for reporting investments in and business relationships with associated companies
and joint ventures in individualand consolidated financial statements.
EU Green Deal
European Commission policy project to achieve climate neutrality
by 2050.

F
FDA
Food and Drug Administration.
Federal regulatory authority forfood and drugs in the US.

FMD
Abbreviation for Falsified Medicines Directive. This directive
on falsified medicines is a legal
framework introduced by the EU
to improve the protection of publichealth in the EU.

G
GMP
Abbreviation for good manufacturing practice. A guideline for quality
assurance in production processes and environments for the
production of medicines and active
ingredients.

Greenhouse Gas Protocol
Global standard for quantifying
and managing greenhouse gas
emissions that is used by governments, non-governmental organizations and numerous companies
in various industries.
GRI
Abbreviation for Global Reporting
Initiative. A provider of standards
for organizations and companies
for voluntarily reporting on theireconomic, environmental andsocial activities.
GTAI
Germany Trade and Invest. Germany’s foreign trade and development agency.

H
Hazardous waste
Waste that has at least one ofthe properties listed in Annex III
of the Basel Convention or thatis classified as hazardous undernational law.
Hemodialysis
Process of filtering the blood used
for treating patients whose kidneys
are not working normally.

I
IAS 29International Accounting Standard
29. Applicable standard for financial reporting in hyperinflationary
countries.
ICH guidelines
The goal of the guidelines from theInternational Council for Harmonization of Technical Requirements
for Pharmaceuticals for Human
Use (ICH) is to harmonize the evaluation criteria of pharmaceuticals
for human use as a basis for drug
registrations in Europe, the US andJapan.

Ifo
Leibniz Institute for Economic
Research at the University of
Munich, Germany. Economic
research institute.
IFRS 16
International Financial ReportingStandard 16. Governs the financial
reporting for leases.
ILO
Abbreviation for International
Labour Organization. An agencyof the United Nations promotingsocial justice as well as human andlabor rights.
IMF
Abbreviation for International
Monetary Fund. A United Nationsorganization based in Washington,
D.C., USA .

Inflation Reduction Act
US federal law promoting clean
energy and realigning the US
economy toward renewable energy
to fight climate change.
IPCEI HealthAbbreviation for Important Projectof Common European Interest. An
EU project promoting thestrengthening of the health careeconomy.
ISMS
Abbreviation for information
security management system. This
includes the establishment of rules
and procedures within an organization to permanently define,control, monitor, maintain andcontinuously improve information
security.
ISO 13485
An international standard for
quality management of medical
devices created by the International Organization for Standardization (ISO). It addresses therequirements manufacturers andproviders of medical devices mustmeet when developing, implementing and maintaining management
systems for the medical device
industry.
ISO 14001
The international environmental
management standard ISO 14001
establishes globally recognized
requirements for environmental
management systems.
ISO 45001
ISO 45001 describes requirementsfor occupational health and safety
management systems. ISO 45001
supersedes BS OHSAS 18001.
ISO 50001
ISO 50001 describes requirements
for energy management systems.
ISO/IEC 27001
An international standard for
information security in private,public or non-profit organizations.
It describes the requirements forsetting up, implementing, operating and optimizing a documented
information security management
system.

127

Annual Report 2023
Glossary

Annual Report 2023
Glossary

IV setIntravenous set. Medical device
used to administer fluids andmedicine through an intravenous
catheter.

L
Layered Hedging
A risk management practiceintended to increase flexibility
when hedging a company’s future
currency risk.
Location-based emissions
Method for quantifying Scope 2
greenhouse gas emissions basedon local grid-average factors
for purchased energy at specificgeographic locations, including
subnational or national borders.
LTI
Long-term incentive. Company
program to engage and motivate
management-level employees bycreating long-term performance
incentives.

M
Market-based emissions
Method of quantifying Scope 2
greenhouse gas emissions basedon emission quantities definedin contractual instruments for purchased energy.
Materiality analysis
A process for identifying sustainability aspects material to acompany and its stakeholders. The
results of the analysis are enteredinto a materiality matrix and form
the basis for identifying potential
sustainability activities.

128

MDR
Abbreviation for Medical Device
Regulation. A regulation for medical devices (EU) 2017/745, that
was adopted in 2017 and enteredinto force in May 2021.

N
Net zero strategy (NHS)
The net zero strategy is a UK
government strategy to reduceclimate-damaging emissions anddecarbonize all sectors of the UK
economy, including the National
Health Service (NHS). The emissions that can be directly controlled by the NHS should reachthe net zero target by 2040.
Next Generation EU
Next Generation EU is a program
designed to contribute to the EU's
recovery from the direct economic
losses and social harm caused by
the COVID pandemic. The funds
will make Europe greener, moredigital and more resilient so it canbetter adapt to the current challenges and those in the future.
NIS2 Directive
EU-wide legislation on network
and information security. Defines
new minimum cybersecurity
requirements for critical infrastructure.

O
OECD
Organization for Economic
Cooperation and Development.
International organization with38 member countries committed
to democracy and the free-market
economy.

P
Parenteral nutrition
Type of artificial nutrition in which
nutrient solutions or emulsions are
fed directly into the bloodstream.
Predictive maintenancePreventative repair of equipment
or components before it occurs
based on the analysis of process
and machine data.
R
Recycling
Recycling is any method ofreprocessing waste into products,
materials or substances either for
its original purpose or for otherpurposes.
Renewable energy
Renewable energy refers tobioenergy (biomass), geothermal energy, hydroelectric power,
marine energy, solar power, andwind energy.

SDGs
Abbreviation for Sustainable
Development Goals. Goals set upby the United Nations in 2015
for sustainable development toaddress global challenges such as
poverty, food and water scarcity,and climate change.

Thermal treatment
A process for utilizing combustible waste to generate energy byincineration in which at least heatis recovered.

STI
Short-term incentive. Remuneration components in short-term
incentive systems.

Water consumption
The sum of water withdrawn andintegrated into production or consumed as part of production. This
includes water generated as waste
or steam, or consumed or contaminated by humans and otheranimals. This water can no longer
be discharged into surface water,
ground water or marine water.

T
Thermal energy
Energy in the form of heating andcooling. Energy in the form ofheating refers to both heat energy(to heat a building) and steam
energy (for sterilization).

W

available renewable surface andground water supply. Higher water
stress indicates greater competition among water users.
Water withdrawal
The sum of the amount of watertaken from all sources and used
for any purpose within theproperty lines of the organization
during the reporting period.

Water stress
The World Resources Institutedefines water stress as the ratio of
total water withdrawal to the

RooA
Return on operating assets. Key
performance indicator.
S
Scope 1 emissions
Direct greenhouse gas emissions
originating from sources belonging
to the company or that are directly
controlled by the company, suchas emissions from furnaces to
produce heat or from vehicles.
Scope 2 emissions
Indirect greenhouse gas emissions
produced from the external generation of power, steam and heating/cooling, whose energy is used by
the company.

129

Annual Report 2023
Index GRI Standards

Annual Report 2023
Index GRI Standards

Index GRI Standards

Material Topics
Indicator Description

General information
Indicator Description
2-1

Organizational details

2-2

Entities included in the organization’ssustainability reporting

Page

List of material topics

3-3Management of material topics

Page

Indicator Description

2-4

Restatements of information

19

2-6

Activities, value chain and otherbusiness relationships

39 ff.

Materials used by weight or volume

20, 26, 33

301-2

Recycled input materials used

24 f.

302-1

Energy consumption within theorganization

21

302-4

Reduction of energy consumption

21

303-1

Interactions with water as a sharedresource

23

303-2

Management of water dischargerelated impacts

23

303-3

Water withdrawal

23

Economic

2-7

Employees

2-9

Governance structure andcomposition

40 f.

2-10

Nomination and selection of thehighest governance body

40 f.

2-19

Remuneration policies

119

2-22

Statement on sustainable
development strategy

17 f.

2-23

Policy commitments

33 f.

2-28

Membership associations

2-30

Collective bargaining agreements

20

Page Indicator Description

301-1

20
19, 135

Social19

39 ff.

Reporting period, frequency
and contact point

2-3

3-2

Environmental
24

Indicator Description

Page

201-1

Direct economic value generated
and distributed

64 ff.

201-3

Defined benefit plan obligations
and other retirement plans

27,
102 ff.

303-4

Water discharge

23

303-5

Water consumption

23

204-1

Proportion of spending on local
suppliers

24

304-1

205-2

Communication and training aboutanti-corruption policies and procedures

33 f.

Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity
value outside protected areas

21

Page

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

401-3

Parental leave

403-1

Occupational health and safety
management system

29 f.

403-2

Hazard identification, risk assessment, and incident investigation

29 f.

403-3

Occupational health services

29 f.

403-5

Worker training on occupational
health and safety

30

403-6

Promotion of worker health

30

403-8

Workers covered by an occupational health and safety management
system30

403-9Work-related injuries

404-1

Average hours of training per year
per employee

29

404-2

Programs for upgrading employee
skills and transition assistanceprograms

29

27, 30

27

29 f.

305-1

Direct (Scope 1) GHG emissions

22 f.

305-2

Energy indirect (Scope 2) GHG
emissions

22 f.

34

305-5

Reduction of GHG emissions

22 f.

27 f.

306-1

Waste generation and significant
waste-related impacts

25 f.

405-1

Diversity of governance bodies andemployees

28

306-2

Management of significant
waste-related impacts

25 f.

413-1

32 f.

306-3

Waste generated

25 f.

Operations with local community
engagement, impact assessments,
and development programs

306-4

Waste diverted from disposal

25 f.

416-1

31

306-5

Waste directed to disposal

25 f.

Assessment of the health and safety
impacts of product and service
categories

This report contains standard disclosures from the GRI
Sustainability Reporting Guidelines. The table provides an
overview of the GRI disclosures mentioned in the report, in
accordance with which we report or whose requirements wemeet in part or in full.

130

131

Annual Report 2023
Report of the Supervisory Board

Annual Report 2023
Report of the Supervisory Board

Report of the Supervisory
Board of B. Braun SE
The Supervisory Board of B. Braun SE has performed
its statutory duties and obligations in accordancewith the applicable laws, articles of incorporation,and bylaws, and to advise and monitor management.
In four ordinary sessions and two extraordinary sessions, the Executive Board reported to the Supervisory
Board on the recent performance of the company, its
financial status, and major investment projects.
One particular topic the Supervisory Board focusedon was the Corporate Operating Model including its
application to the United States, major research anddevelopment projects, and the Hospital Care Pharma
roadmap. The divisional roadmaps for 2024–2026 andthe China Strategy were also presented. The Supervisory Board was also briefed on the founding of a
new company, biologization as a key technology,
and the expansion of Aesculap’s production capacity. The Supervisory Board received the 2022 humanresources report, the earnings expectations for 2023
and the forecast for 2024, and discussed and ruled ontransactions requiring approval in accordance withthe articles of incorporation.
The Chairman of the Supervisory Board also routinely
exchanged information and thoughts with the Chief
Executive Officer with regard to major developmentsin the business performance of the company and theGroup, as well as upcoming decisions.
The Supervisory Board performed a voluntary efficiency audit. This self-evaluation revealed that theSupervisory Board is efficiently organized and that
the Executive Board and Supervisory Board work
together very well.
The subjects of the two sessions of the audit committee were, in particular, the individual and consolidated

132

2022 financial statements of B. Braun SE prepared by
the Executive Board and the current course of business development. The Internal Auditing department’s
annual report on audits conducted as well as theauditing plan and its priorities were also addressed.
In addition, the audit committee received the compliance report of the B. Braun Group and the Executive
Board’s risk report. The planning for the annual audit
was also presented. The current state of ESRS-compliant sustainability reporting was also presented anddiscussed. The audit committee reported on these
topics during the Supervisory Board sessions and put
forward its proposals.
The Human Resources committee met four times in
2023. In its session on March 20, 2023, it recommended to the Supervisory Board resolutions on the
allocation of profit participation rights under the
B. Braun Incentive Scheme to the members of the
Executive Board as well as on annual targets for
2023–2025. The basic remuneration of the Executive Board was also reviewed. The Supervisory Board
adopted the resolutions in its session on March 21,
2023. The Human Resources committee also recommended the nomination of Dr. Jens von Lackum as full
member of the Executive Board, which the Supervisory
Board approved in the following session. In its session
on June 26, 2023, the Human Resources committee
addressed Works Council remuneration and working
time recording, and approved the responsibilities andancillary activities of Executive Board members. The
Human Resources committee also recommended theappointment of Ingrun Alsleben as member of the
Executive Board to the Supervisory Board, effective
January 1, 2024. The Supervisory Board adopted theresolution accordingly in its extraordinary session on
August 16, 2023, and confirmed the appointment. In
its session on August 21, 2023, the Human Resources
committee recommended to the Supervisory Board
the reappointment of Anna Maria Braun as full
member of the Executive Board and Chief Executive Officer until March 21, 2029; the Supervisory Board approved this recommendation in its

 First row (from left):
Maria Schwarz*
Chemical Production Forewoman;
Chairwoman of the Workers' Council
for the Berlin Site, B. Braun
Melsungen AG, Berlin
Sabine Süpke*Regional Director for Hesse-Thuringia
for IGBCE (German Trade Union for
Mining, Chemical Engineering),
Wiesbaden
Prof. Dr. Karl Friedrich Braun
Senior Physician at Martin LutherHospital, Freelancer, Berlin
Kathrin Dahnke
Self-employed management
consultant, Bielefeld
 Second row (from left):
Alexandra Friedrich*
Vice Chairwoman; Chairwoman of
the Joint Workers' Council of B. Braun
Melsungen AG; Chairwoman of theWorkers’ Council at the Melsungen/Spangenberg location, MelsungenFriederike Braun-Lüdicke
Head of Culture and Diversity,
B. Braun Service SE & Co. KG,
Melsungen
Thorsten Nöll*
Senior Vice President of Logistics &Supply Chain, B. Braun Melsungen AG,
Melsungen Third row (from left):
Michael Guggemos*
Former Managing Director of
the Hans-Böckler-Stiftung, Berlin
Dr. Tobias Polloczek
Attorney-at-law; Partner at CMS
Hasche Sigle Partnership of Attorneys
and Tax Advisors, Frankfurt
Mike Schwarz*
Chairman of the Workers' Councilof B. Braun SE, Chairman of the Group
Works Council, MelsungenProf. Dr. Thomas Rödder
Chairman, Tax Advisor and Certified
Public Accountant; Partner at Flick
Gocke Schaumburg, Bonn

Lars Elmenthaler*
Chairman of the Workers' Councilof Aesculap AG, Tuttlingen Fourth row (from left):
Olaf Elixmann*
Chairman of the Workers' Council of
B. Braun Avitum AG, Glandorf Plant
Prof. Dr. Oliver Schnell
Founder and Managing Directorof Sciarc GmbH, Baierbrunn
 Not pictured:
Prof. Dr. Dr. h.c. mult.
Markus Wolfgang Büchler
Director Botton-Champalimaud
Pancreatic Cancer Center, Champalimaud Foundation, Lisbon (Portugal)
Dr. Frank Heinricht
Chairman of the Management
Board of Schott AG, Mainz*Elected by the employees

133Annual Report 2023
Imprint

Annual Report 2023
Report of the Supervisory Board

subsequent session. In its session on December 12,
2023, the Human Resources committee recommended to the Supervisory Board the appointment of
Dr. Jean-Claude Dubacher as full member of the
Executive Board effective April 1, 2024. The Supervisory Board adopted the resolution and approved theappointment accordingly in its subsequent session.
The Human Resources committee’s 2023 sessions also
included discussions on general human resources topics.
B. Braun SE’s financial statements and management
report for the 2023 fiscal year, as prepared by the
Executive Board, the Group’s consolidated financial statements, and the consolidated management
report were audited by the PricewaterhouseCoopers GmbH accounting firm, Kassel, Germany, which
was appointed the auditor of annual accounts at theannual meeting on March 21, 2023. The auditor raised
no objections and issued unqualified audit opinions.
The statutory auditor participated in the discussionsof the Supervisory Board and the audit committee
regarding the financial statements and the consolidated financial statements and reported on the main
findings of its audit. The Chairman of the Supervisory
Board was in contact with the auditors regarding thefindings of the audit. The Supervisory Board’s reviewof the financial statements, the management report,
and the proposal for appropriation of the net profitof B. Braun SE, as well as the consolidated financial
statements and the Group management report, led tono objections in correspondence with the results of the
independent auditor's report. The financial statements
and consolidated financial statements as compiled

134

by the Executive Board were approved and thereby
recorded pursuant to § 172 German Stock Corporation
Act (AktG).
The Supervisory Board concurs with the proposal of
the Executive Board to appropriate the consolidated
net income.
The Executive Board created a report on the relationships with associated companies for the 2023 fiscal
year, in accordance with § 312 AktG. The Supervisory Board has reviewed this report and no objections
were raised. The independent auditor has reviewed thereport and issued the following audit certificate:“Having conducted a proper audit and appraisal, we
hereby confirm that
1. the factual statements in the report are correct and2. the company's compensation with respect to thetransactions listed in the report was not inappropriately high.”
The Supervisory Board is in agreement with the resultsof the independent auditor's report. In accordancewith the results of the Supervisory Board’s review,
no objections are to be raised to the final declarationby the Executive Board that is included in the report.

Imprint

B. Braun SE
Carl-Braun-Straße 134212 MelsungenGermany
Tel. +49 5661 71-0
www.bbraun.com

Responsible
Group Communications
Email: press@bbraun.com
www.bbraun.com/ar2023
Group Sustainability
Email: sustainability@bbraun.com
www.bbraun.com/sustainability

Thank you
The Supervisory Board would like to thank the Executive Board for its excellent and successful collaboration, and all employees of the B. Braun Group for thecontributions they made in the reporting period.

to all our colleagues who collaborated in thecreation of the 2023 Integrated Annual Report.
This report was only published digitally.
Photographic rights belong to B. Braun SE.

Melsungen, March 2024
The Supervisory Board

135

B. Braun SE
www.bbraun.com