The Fraunhofer-Gesellschaft’s total business volume 2015–2019
In business terms, 2019 was a successful year for Fraunhofer. The total business volume amounted to just short of €2.8 billion, having increased by a substantial 8 percent compared with the previous year. Contract research accounted for 83 percent of this sum, or around €2.3 billion, and represents the organization’s core activity, around one third of which is financed by means of base funding provided by the federal and state governments. As of 2019, 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 €159 million in the reporting period. Major infrastructure capital expenditure amounted to €306 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 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 total, capital expenditure rose to €481 million, an increase of 8 percent. In 2019, the ratio of capital expenditure to total business volume was 18 percent, as in the previous year. The personnel expenses recognized in the operating budget rose by 9 percent to €1479 million, an increase that was due to workforce growth of 1340 employees (up 5.0 percent) and to a 3.1-percent average wage increase granted as of April 1, 2019 under the collective wage agreement for the public sector. At €769 million, non-personnel expenses were around 10 percent higher than in the previous year. Reserves increased by €31 million.