Finances

The Fraunhofer-Gesellschaft’s total business volume 2016–2020

With tremendous input from everybody involved, the Fraunhofer- Gesellschaft succeeded in overcoming the effects of the coronavirus pandemic in 2020. Total business volume remained stable year-on-year at €2.8 billion, which confirms that Fraunhofer has been successful in retaining its staff levels and expertise. Contract research accounted for 85 percent of this sum (around €2.4 billion) and represents the organization’s core activity. Around one third of contract research funding is provided by base funding from the federal and state governments. Research of a long-term nature that falls outside the scope of this regular base funding is allocated to a new item, additional research funding, which amounted to €164 million in the reporting period. Major infrastructure capital expenditure amounted to €270 million. The three segments will be discussed in greater detail in the following sections.

Business volume is based on the performance statement, which meets the requirements of the funding agencies. In the operating budget, personnel and non-personnel expenses are recognized according to general accounting practice along with the change in the special-purpose license-fee revenue reserve. As capital expenditure is recognized at the amount incurred at the time of purchase, depreciation, amortization and impairment losses are not included in the performance statement. In 2020, Fraunhofer invested a total of €475 million, a 17-percent share of the total business volume. Personnel expenses increased to €1565 million. In addition to a 1-percent increase in pay from March 1, 2020, the number of employees increased, despite a board resolution that froze recruitment from April 15, 2020 and only permitted new staff to be hired in individual cases where this was strategically necessary, or where externally specified measures required it. At €792 million, non-personnel expenses were slightly higher than in the previous year. While significant savings were made due to the coronavirus, for example in terms of travel costs, establishing the new Fraunhofer Competence Network Quantum Computing resulted in additional non-personnel expenses. The reserve fund balance remained unchanged in 2020; however, it was used in the course of the year to cover liquidity requirements.