Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q3 2022 Earnings Presentation
13 slides from Fresenius Medical Care's earnings presentation, Oct 31, 2022
Slide 1: Q3 2022 Analyst Presentation
Q3 2022 Analyst Presentation Dr. Carla Kriwet, CEO Helen Giza, Deputy CEO & CFO © Copyright
Slide 2: Safe harbor statement
Safe harbor statement: This presentation includes certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncert
Slide 3: Bold interventions to drive business turnaround and position FME for future growth
Bold interventions to drive business turnaround and to position FME for future sustainable and profitable growth Business turnaround and new operating model Address performance issues in U.S. through improved employee retention, Care Delivery optimized clinic footprint, cost structure and operationa
Slide 4: Challenging environment weighing on business development
Q3 2022 | Challenging environment weighing on business development ▪ Business development continues to be Key Figures strongly impacted by highly uncertain macroeconomic environment driving wage and general cost inflation Q3 2022 Q3 2021 Growth Growth € million € million in % in %cc ▪ Impacts of imp
Slide 5: 9 month development for Tail- & Headwinds
FY 2022 | 9 month development for Tail- & Headwinds € 60m additional impact on operating income in FY 2022 Previous Negative impact on operating income (€m) assumption 220 230 Macro-economic inflationary environment 175 and elevated supply chain costs 100 100 COVID-19-related excess mortality 84 100
Slide 6: Currency effects support revenue development
Q3 2022 | Currency effects support revenue development HEALTH CARE PRODUCTS HEALTH CARE SERVICES Revenue: €4,082 M Revenue: €1,014 M +16% | +2% cc | +2% organic +11% | +4% cc | +4% organic ▪ Organic growth in EMEA, Asia-Pacific and Latin ▪ Higher sales of in-center disposables and renal America, par
Slide 7: Operating income margin development
Q3 2022 | Operating income margin development 11.4% (1.2pp) (1.5pp) 0.6pp 9.2% (1.0pp) 1.1pp 9.3% (1.5pp) 1.7pp (0.3pp) Q3 2021 Business Labor cost Macro- Ballot Governmental FME25 savings Q3 2022 FME25 costs InterWell Q3 2022 operating growth, incl. increase >3% economic initiatives support applied
Slide 8: Stable free cash flow development
Q3 2022 | Stable free cash flow development Q3 2022 Q3 2021 € million € million Operating cash flow 658 692 Capital expenditures, net (157) (181) Free cash flow 501 511 Free cash flow after investing activities 557 391 ▪ Cash flow development impacted by lower net Net leverage ratio (Net debt/EBITDA
Slide 9: Solid credit profile
Solid credit profile Long-term debt maturity profile1 Rating outlook stable €m 2,500 2,000 S&P 1,500 872 BBB 1,000 200 Outlook stable 25 1,693 513 500 1,100 650 750 750 410 500 500 Moody’s 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 EUR Bonds USD Bonds Schuldschein Loans Baa3 Outlook stable
Slide 10: FY 2022 Revised guidance
FY 2022 | Revised guidance REVENUE | FY2022 NET INCOME | FY2022 Constant currency growth at1 Constant currency decline at1 low-single digit high teens to mid-twenties percentage rate percentage range 2021: € 17,619m 2021: € 1,018m Excluding special items Special items include costs related to FME25,
Slide 11: FY 2023 Indicative Tail- & Headwinds
FY 2023 | Indicative Tail- & Headwinds Tailwinds Headwinds Business growth FME25 savings Provider Relief Labor costs contribution Funding 2022 Reduced PPE Ballot costs Macroeconomic Other non- costs 2022 environment recurring positive effects 2022 © │ Analyst Presentation Q3 2022 Page 11
Slide 12: Your questions are welcome.
Your questions are welcome. Q3 2022 © Copyright
Slide 13: FY 2022 Assumptions for operating income
FY 2022 | Assumptions for operating income Assumptions FY2022 operating income: ▪ Macro-economic inflation and supply chain costs of around EUR 230m ▪ COVID-19: Impact of accumulated excess mortality of around EUR 100m ▪ U.S. labor costs are expected to be around EUR 100 m net of support from U.S. P
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