Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Investor Presentation (March 2020)
46 slides from Fresenius Se & Co. Kgaa's investor presentation, March 2020
Slide 1: Company Presentation
Company Presentation March 2020 Frankfurt stock exchange: FRE │ US ADR program: FSNUY │ www.fresenius.com/investors
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive
Slide 3: A Global Leader in Health Care Products and Services
A Global Leader in Health Care Products and Services ~€35.5 bn in Sales Long-term opportunities (FY/2019) in growing, non-cyclical Leading market positions markets Global presence in 294,000+ employees Strong financial performance 100+ countries worldwide and cash flow generation (as of Dec. 31, 201
Slide 4: Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets
Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2019 Sales by Region Sales in € bn Latin America 4% Africa 1% 6% 35,524 CAGR 33,886 33,530 Asia-Pacific 11% 29,471 €35.5 bn 27,995 Europe 43% North America 41% 4,830 4,561 4,599 4,001 4,302 2015 2016 2017 2018 2019 EBIT Before speci
Slide 5: Fresenius Group: Strong Track Record of Organic Sales Growth in All Business Segments
Fresenius Group: Strong Track Record of Organic Sales Growth in All Business Segments Fresenius Group Business Segments 5% CAGR 8% 7% 7% 7% 7% 6% 6% 6% 6% 5% 5% 5% 4% 4% 4% ´15 ´16 ´17 ´18 ´19 ´15 ´16 ´17 ´18 ´19 ´15 ´16 ´17 ´18 ´19 16% 16% 6% 6% 5% 5% 4% 4% 3% 3% ´15 ´16 ´17 ´18 ´19 ´15 ´16 ´17 ´18
Slide 6: Strong and Balanced Health Care Portfolio
Strong and Balanced Health Care Portfolio Ownership: ~32% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Hospital Supplies Hospital Operation Projects and Services for Health Care Services Hospitals • Dialysis services • IV drugs • Acute care • Post-acute care • Hemodialysis produc
Slide 7: Fresenius Medical Care: Global Dialysis Market Leader
Fresenius Medical Care: Global Dialysis Market Leader • The world’s leading provider of dialysis products Market Dynamics and services treating ~ 345,000 patients1 in ~ 4,000 clinics1 Global Dialysis Market 2019: • Provide highest standard of product quality and • ~€80 bn • ~6% patient growth p.a. p
Slide 8: Fresenius Kabi: A Leading Global Hospital Supplier
Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for critically and Market Dynamics chronically ill patients • Strong Emerging Markets presence Global Addressable Market 2019: • Leading market positions • ~€97 bn Growth Drivers: • Patent expirations, rising demand
Slide 9: Fresenius Helios: Europe's Largest Private Hospital Operator
Fresenius Helios: Europe’s Largest Private Hospital Operator • Market leader in size and quality with excellent Market Dynamics growth prospects Hospital Market Size: • ~5%1 share in German acute care hospital • ~€102 bn2 German Acute Care Hospital Market ~12%1 share in Spanish private hospital mark
Slide 10: Fresenius Vamed: Leading Global Hospital Projects and Services Specialist
Fresenius Vamed: Leading Global Hospital Projects and Services Specialist • Manages hospital construction/expansion Market Dynamics projects and provides services for health care facilities worldwide Growth Drivers: • Offers project development, planning, turnkey • Emerging Market demand for buildin
Slide 11: Global Trends offer Growth Opportunities for Fresenius
Global Trends offer Growth Opportunities for Fresenius Aging Population Growing healthcare sector 6.3 % by 2050 Growth in emerging In 2019: 9% of the world 16 % markets + population is > age 651 over the next decade2 p.a. Increasing national income Chronically ill patients GDP per capita quadrupled
Slide 12: Fresenius Group: Growth Areas
Fresenius Group: Growth Areas Worldwide growing Growing Markets Marketing dialysis market with High Entry Attractive markets of existing Barriers value chain Standardizing Attractive Product Market Strengthening medical procedures Pipeline consolidation and extension of value chain Home dialysis Ent
Slide 13: Fresenius Group: Medium-term Growth Targets 2020 – 2023 (CAGRs)
Fresenius Group: Medium-term Growth Targets 2020 – 2023 (CAGRs) Organic sales growth 4 – 7% (plus ~1% small to mid-size acquisitions) confirmed Organic net income1 growth 5 – 9% (plus ~1% small to mid-size acquisitions) confirmed 1 Net income attributable to shareholders of Fresenius SE & Co. KGaA B
Slide 14: The Fresenius Strategy
The Fresenius Strategy Improve profitability Drive Quality Internation- alization Hospital Dialysis supplies & products & Innovation services services Employees Better Hospital projects & medicine and Hospital operations services health care services for ever more people Forward thinking healthcare
Slide 15: Our ESG Priorities: Patients, Employees and Compliance
Our ESG Priorities: Patients, Employees and Compliance Serving the well-being Doing the right thing Being an attractive Protecting nature as Caring for of the patient employer the basis of life human rights Quality of medical Code of Conduct Personnel structure Water No exploitative nor ou
Slide 16: ESG Rating Overview: Continuous Improvement through Reporting and Engagement
ESG Rating Overview: Continuous Improvement through Reporting and Engagement CDP Climate: C 39/100 Current Score Prime C BB 55/100 CDP Water: C DJSI Europe Sector CDP Climate: B- C- BBB - A 28 / 100 47 – 63/ 100 Average Previous CDP Climate: D- Prime C BB 33/100 48 /100 Score CDP Water: D- • Improve
Slide 17: Sustainability/ESG: Decisive Steps for 2020
Sustainability/ESG: Decisive Steps for 2020 Our Priorities • “Better medicine for more people” • Patients: Quality of products and services • People: Being an attractive employer • Compliance: Doing the right thing Sustainability Governance Remuneration • CEO sponsors Group sustainability efforts •
Slide 18: Fresenius Group: Capital Deployment Focuses on Sustainable Value Creation
Fresenius Group: Capital Deployment Focuses on Sustainable Value Creation Investments in own business Strategic acquisitions Dividends Share buy backs Leverage ratio 3.0-3.51 1 Including IFRS 16 Company Presentation March 2020 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 18
Slide 19: Fresenius Group: Proven Track Record of Deleveraging
Fresenius Group: Proven Track Record of Deleveraging Net Debt/EBITDA1 Target 20203 towards the top-end of self-imposed target corridor of 3.0 – 3.5x Hospitals from 4.0 4,0 3.6x 3.5x 3.5 3,5 3.2x 3.2x 3.1x 4 3.0x 3.0x 3.0x 3.0 3,0 2.8x 2.7x 2.7x 2.7x 2.6x 2.6x 2.6x 2.5x 2.7x 2.5 2,5 2.2x 2.3x 2.3x 2.
Slide 20: Fresenius SE: Earnings-Linked Dividend Policy
Fresenius SE: Earnings-Linked Dividend Policy 2019 Pay-out Ratio: 24% Dividend Policy 0.84 0.80 • Dividend growth aligned to EPS 1 0.75 growth • Pay-out Ratio: 20% to 25% 0.62 0.55 Pay-out Ratio 0.44 0.42 € per share 0.37 0.32 Track record 0.29 Dividend 0.25 distribution 0.23 (€m) 25% 24% 24% 24% •
Slide 21: Total Shareholder Return – CAGR, Rounded
Total Shareholder Return – CAGR, Rounded 10 years 15 years 20 years 15% 14% 14% 13% 11% 10% 9% 8% 8% 8% 6% 3% DAX S&P 500 Fresenius MSCI World Fresenius DAX S&P 500 Fresenius MSCI World Fresenius DAX S&P 500 MSCI World Fresenius Fresenius Health Care Health Care Health Care Source: Bloomberg; divide
Slide 22: Review FY/19
Review FY/19 Company Presentation March 2020 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 22
Slide 23: Fresenius Group
Fresenius Group • Delivered on all targets - 16th consecutive record year • 27th consecutive dividend increase proposed • Fresenius Kabi expected to show healthy top-line growth whilst softness in North America weighs on EBIT in FY/20 • Fresenius Helios anticipated to show ongoing stabilization in G
Slide 24: Fresenius Kabi: Volume Headwinds Partially Offset by New Product Launches in North America
Fresenius Kabi: Volume Headwinds Partially Offset by New Product Launches in North America • Ongoing volume headwinds anticipated − Intensified competition − Shortage tailwind essentially over − Opioid market not expected to recover • Pricing expected to be in-line with historical trends, however tr
Slide 25: Fresenius Kabi: Rigorous Pursuit to Further Broaden and Diversify Portfolio in North America
Fresenius Kabi: Rigorous Pursuit to Further Broaden and Diversify Portfolio in North America Current Portfolio 2023 Portfolio IV drugs Pre-filled syringes IV solutions Parenteral nutrition Infusion pumps Biosimilars
Slide 26: Fresenius Kabi: Continued Positive Momentum in Emerging Markets
Fresenius Kabi: Continued Positive Momentum in Emerging Markets • Strong organic sales growth expected • Continued positive momentum in Latin America anticipated • Regulatory changes in China expected to weigh on EBIT development • Too early to quantify the financial impact of Covid-19 Significant s
Slide 27: Fresenius Kabi: Biosimilar Update
Fresenius Kabi: Biosimilar Update Launch schedule Progress of portfolio Adalimumab • Three more molecules in portfolio 2019 • Expect to start with clinical studies for those molecules in 2021 2023 Business plan Pegfilgrastim • Total investment ceiling €1.4 bn until 2021 EBITDA break-even in 2023 202
Slide 28: Fresenius Kabi: Launch of Idacio in Europe Progresses According to Plan
Fresenius Kabi: Launch of Idacio in Europe Progresses According to Plan Launched Approved Submitted Company Presentation March 2020 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 28
Slide 29: Fresenius Kabi: Divisionalization of Transfusion Medicine and Cell Therapies Business Fuels Growth
Fresenius Kabi: Divisionalization of Transfusion Medicine and Cell Therapies Business Fuels Growth • Business remains important part of Fresenius Kabi • Dynamic growth in FY/19 and good growth prospects • Inauguration of new production building in Haina, Dominican Republic to fuel growth of disposab
Slide 30: Fresenius Helios: Germany to Show Ongoing Stabilization in FY/20
Fresenius Helios: Germany to Show Ongoing Stabilization in FY/20 Mitigation of regulatory headwinds • Chief doctor vacancies at record low • Appropriate level of nursing staff • Optimization of processes and workflows • Cost optimization measures Very positive reimbursement environment • 2020 DRG in
Slide 31: Fresenius Helios: Spain to Plow Ahead in FY/20
Fresenius Helios: Spain to Plow Ahead in FY/20 Excellent growth in Spain Expansion in Latin America proceeds • Opening of first proton therapy center in • Five successful acquisitions in Colombia Spain (first patient treated in December ’19) contribute nicely in FY/20: • Opening of Quironsalud Madri
Slide 32: Financial Review
Financial Review Company Presentation March 2020 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 32
Slide 33: Fresenius Group: FY/19 Profit and Loss Statement
Fresenius Group: FY/19 Profit and Loss Statement Sales EBIT +6% -2% Net Income FY/19: €33,524 m FY/19: €4,599 m +0% Income Tax Rate Net Interest FY/19: €1,915 m 23.4% -€510 m FY/18: 22.1% FY/18: -€549 m All growth rates in constant currency (cc) Before special items, adjusted for IFRS 16 effect On a
Slide 34: Fresenius Group: Q4/19 Business Segment Growth
Fresenius Group: Q4/19 Business Segment Growth Organic sales growth1 EBIT growth (cc)1 +5% 0% +4% -1% +4% 5% +4% +7% +4% 0% 1 On a comparable basis: Q4/18 adjusted for divestitures of Care Coordination activities at FMC; Q4/19 adjusted for IFRS 16 effect. All figures before special items For a detai
Slide 35: Fresenius Kabi: Expected Organic Sales Growth 2020
Fresenius Kabi: Expected Organic Sales Growth 2020 North America Europe Broadly stable Mid-single-digit growth • Ongoing volume headwinds anticipated • Growth driven by first biosimilar in • Pricing expected to trend more the market (IDACIO) towards mid-single digit price • Continued strong growth o
Slide 36: Fresenius Kabi: Organic Sales Growth by Product Segment
Fresenius Kabi: Organic Sales Growth by Product Segment Δ YoY Δ YoY €m Q4/19 organic FY/19 organic IV Drugs 737 -1% 2,939 -1% Infusion Therapy 213 2% 834 3% Clinical Nutrition 482 8% 1,898 9% Medical Devices/ 334 10% 1,248 11% Transfusion Technology Total sales 1,766 4% 6,919 4% Company Presentation
Slide 37: Fresenius Kabi: Organic Sales Growth by Regions
Fresenius Kabi: Organic Sales Growth by Regions Δ YoY Δ YoY €m Q4/19 organic FY/19 organic North America 609 -1% 2,424 -2% Europe 604 2% 2,313 2% Emerging Markets 553 12% 2,182 14% Total sales 1,766 4% 6,919 4% Company Presentation March 2020 © Fresenius SE & Co. KGaA Investor Relations & Sustainabi
Slide 38: Fresenius Kabi: Q4 & FY/19 EBIT Growth
Fresenius Kabi: Q4 & FY/19 EBIT Growth €m Q4/19 Δ YoY cc FY/19 Δ YoY cc North America 204 -8% 907 -3% Margin 33.5% -260 bps 37.4% -50 bps Europe 87 -10% 328 -7% Margin 14.4% -200 bps 14.2% -160 bps Emerging Markets 124 7% 476 19% Margin 22.4% -90 bps 21.8% 130 bps Corporate and Corporate R&D -132 11
Slide 39: Fresenius Helios: Q4 & FY/19 Key Financials
Fresenius Helios: Q4 & FY/19 Key Financials €m Q4/19 Δ YoY FY/19 Δ YoY Total sales 2,344 4%1 9,234 5%1 Thereof Helios Germany 1,475 3%1 5,940 3%1 Thereof Helios Spain 867 7%1 3,292 7%1 Total EBIT3 292 5% 1,015 -4%/-3%2 Margin 12.5% 10 bps 11.0% -70 bps Thereof Helios Germany 143 4% 576 -8%/-6%2 Marg
Slide 40: Fresenius Helios: Key Measures
Fresenius Helios: Key Measures FY/19 FY/18 Δ No. of hospitals Germany 86 86 0% - Acute care hospitals 83 83 0% No. of hospitals Spain 51 47 9% (Hospitals) No. of beds Germany 28,907 29,329 -1% - Acute care hospitals 28,380 28,802 -1% No. of beds Spain 7,288 7,019 4% (Hospitals) Admissions Germany (a
Slide 41: Fresenius Vamed
Fresenius Vamed • Both business segments contributed to €m Q4/19 Δ YoY FY/19 Δ YoY the organic sales growth of 4% in Q4/19 Total sales 737 6% 2,206 31% • Stable service business is gaining weight Thereof organic sales 4% 16%1 (FY/19: 63% of sales; FY/09: 32%) Service business 374 11% 1,399 43% • Geo
Slide 42: Fresenius Group: FY/19 & Cash Flow
Fresenius Group: FY/19 & Cash Flow Operating CF1 Capex (net) Free Cash Flow1,2 €m FY/2019 Margin FY/2019 Margin FY/2019 Margin 1,947 11.1% -1,113 -6.4% 834 4.7% 968 14.0% -716 -10.4% 252 3.6% 683 7.4% -477 -5.2% 206 2.2%4 -46 -2.1% -52 -2.3% -98 -4.4% Corporate/Other -38 n.a. -75 n.a. -113 n.a. 1,67
Slide 43: Fresenius Group: 2020 Financial Outlook by Business Segment
Fresenius Group: 2020 Financial Outlook by Business Segment €m (except otherwise stated) FY/19 Base1 FY/20e2 mid to high single digit Sales growth (cc) 17,477 %-range mid to high single digit Net income growth3 (cc) 1,205 %-range Sales growth (organic) 6,919 3% - 6% EBIT growth (cc) 1,205 -4% to 0%
Slide 44: Fresenius Group: 2020 Financial Guidance
Fresenius Group: 2020 Financial Guidance €m (except otherwise stated) FY/19 Base1 FY/202 Sales growth (cc) 35,409 4% - 7% Net income3 growth (cc) 1,879 1% - 5% 1 Before special items, including IFRS 16 effects, including NxStage operations 2 Before special items 3 Net income attributable to sharehol
Slide 45: FY/19 base for Fresenius Group Guidance FY/20
FY/19 base for Fresenius Group Guidance FY/20 Fresenius Fresenius Fresenius €m Group Medical Care Kabi Sales reported (reported = base for guidance) 35,409 17,477 6,919 Transaction costs Akorn 3 Revaluations of biosimilars contingent purchase price liabilities -32 EBIT (before special items = base F
Slide 46: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar 06 May 2020 Results Q1/20 20 May 2020 Annual General Meeting 26 May 2020 Dividend payment 30 July 2020 Results Q2/20 29 October 2020 Results Q3/20 Please note that these dates could be subject to change. Contact Investor Relations & Sustainability Fres
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