Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q3 2024 Earnings Presentation
27 slides from Fresenius Medical Care's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 IR Conference Call
Analyst Presentation Helen Giza CEO & Chair of the Management Board Martin Fischer CFO November 5, 2024 Q3 2024 IR Conference Call
Slide 2: Safe harbor statement
Safe harbor statement: In this Safe harbor statement, “the Company” and “Fresenius Medical Care” refer to Fresenius Medical Care AG & Co. KGaA, a German partnership limited by shares, prior to its conversion of legal form, and to Fresenius Medical Care AG, a German stock corporation, after its conve
Slide 3: Execution against strategic plan, Q3 Business Update, Outlook
1 Execution against strategic plan 2 Q3 Business Update 3 Outlook
Slide 4: Q3 2024 Highlights
Q3 2024 Highlights | Strong improvement of financial performance with meaningful progress towards 2025 income margin targets Care Delivery Care Enablement ▪ Positive underlying same market treatment growth: ▪ Solid volume growth and continued positive pricing – U.S. turned positive momentum outside
Slide 5: Q3 2024 | Key developments at Group level
Q3 2024 | Key developments at Group level ▪ Organic revenue growth of +1.9% supported by Care Enablement and Care Delivery ▪ Underlying U.S. same market treatment growth turned positive ▪ Exceeding full year FME25 savings target, with additional EUR 64 3 million contribution in Q3 ▪ Both segments fu
Slide 6: Q3 Business Update
1 Execution against strategic plan 2 Q3 Business Update 3 Outlook
Slide 7: Q3 2024 | Continued operating margin focus takes effect
Q3 2024 | Continued operating margin focus takes effect Revenue | outlook base1 Operating income | outlook base1 in € million Margin in % 6.6% 8.9% 9.8% 9.7% -0.7% 4,936 4,855 outlook base1 4,820 +10.3% 4,760 in € million outlook base1 -81 +1.9% -60 474 463 organic 106 430 -5 -6 324 Q3 2023 Divest-
Slide 8: Group income margin growth driven by increased operating income in both segments
Q3 2024 | Group income margin growth driven by increased operating income in both segments Margin in % 8.9% 9.8% In € million 58 474 463 19 -6 106 430 -27 -5 -6 324 Q3 2023 Special Q3 2023 Care Care Inter- Corporate Q3 2024 Fx Special items Q3 2024 operating items & 2023 operating Delivery Enablemen
Slide 9: Q3 2024 | Care Delivery income driven by higher price and volume
Q3 2024 | Care Delivery income driven by higher price and volume Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % 10.5% outlook base1 11.2% -2.2% +4.6% 3,892 outlook base1 3,806 408 66 8 -55 427 +1.0% organic 3,186 3,211 Business FME25 Labor growth savin
Slide 10: Q3 2024 | Care Enablement delivers solid growth and structural margin expansion
Q3 2024 | Care Enablement delivers solid growth and structural margin expansion Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % +4.2% 1.5% outlook base1 5.6% outlook base1 1,330 1,386 +284% +4.2% organic -15 78 50 20 23 Q3 2023 Q3 2024 Q3 2023 Business
Slide 11: Lower net financial debt and further improved net leverage ratio
Q3 2024 | Lower net financial debt and further improved net leverage ratio in € million Q3 Q3 9M 9M 2024 2023 2024 2023 Key developments Operating cash flow 985 760 1,554 1,910 ▪ In Q3 2024, operating cash flow increased mainly due to the recovery of ▪ Capital expenditures, net -170 -134 -452 -430 c
Slide 12: Outlook
1 Execution against strategic plan 2 Q3 Business Update 3 Outlook
Slide 13: FY 2024 | Outlook confirmed
FY 2024 | Outlook confirmed FY 2024 Outlook Mid-term Outlook Low- to mid-single digit Revenue percent growth (outlook base)1 FY 2023 basis: EUR 19.0bn Group operating income margin 10% to 14% by 2025 16 – 18 percent growth Operating income Before: Mid- to high-teens percent growth (outlook base)1 FY
Slide 14: Your questions are welcome.
Your questions are welcome.
Slide 15: Appendix
Appendix
Slide 16: Q3 2024 | Profit and Loss
Q3 2024 | Profit and Loss Q3 2024 Q3 2023 Growth Growth € million € million in % in % cc Revenue 4,760 4,936 -4 -2 Revenue (outlook base)1 4,820 4,855 -1 Operating income 463 324 43 43 Operating income margin in % 9.7 6.6 Operating income (outlook base)1 474 430 10 Operating income margin (outlook b
Slide 17: 9M 2024 | Profit and Loss
9M 2024 | Profit and Loss 9M 2024 9M 2023 Growth Growth € million € million in % in % cc Revenue 14,251 14,466 -1 -1 Revenue (outlook base)1 14,385 14,215 1 Operating income 1,133 942 20 21 Operating income margin in % 8.0 6.5 Operating income (outlook base)1 1,323 1,167 13 Operating income margin (
Slide 18: 2023 base for 2024 targets, reconciliation adjustments (Q3)
2023 base for 2024 targets, reconciliation adjustments Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparison with outlook Inter-segment Group Care Delivery Care Enablement Corporate eliminations Growth Growth Growth € million Q3 2024 Q3
Slide 19: 2023 base for 2024 targets, reconciliation adjustments (9M)
2023 base for 2024 targets, reconciliation adjustments Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparison with outlook Inter-segment Group Care Delivery Care Enablement Corporate eliminations 9M 9M Growth 9M 9M Growth 9M 9M Growth 9M
Slide 20: Debt
Debt Q3 2024 FY 2023 FY 2022 € million € million € million Debt Short-term debt from unrelated parties 104 457 644 + Short-term debt from related parties - - 4 + Current portion of long-term debt 943 487 694 + Current portion of lease liabilities from unrelated parties 574 593 650 + Current portion
Slide 21: EBITDA
EBITDA Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q3 2024 FY 2023 FY 2022 € million € million € million Net income 879 732 895 + Income tax expense 342 301 325 − Interest income -77 -88 -68 + Interest expense 417 424 360 + Dep
Slide 22: Return on Invested Capital (ROIC) continued to be impacted by lower earnings
Return on Invested Capital (ROIC) continued to be impacted by lower earnings 12.4% rep. 8.6% 7.8% 8.0% adj. 8.0% adj. 7.1% 6.6%adj. 6.1% rep. 5.1% adj. 5.8% rep. 3.9% adj. 3.6% adj. 4.6% adj. 4.9% rep. 3.7% rep. 3.3% rep. 2.8% rep. 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 ▪ For the years
Slide 23: Exchange rates, U.S. dialysis days per quarter, definitions
Exchange rates, U.S. dialysis days per quarter, definitions Exchange rates U.S. dialysis days per quarter Q1 Q2 Q3 Q4 Full year Q3 2024 FY 2023 FY 2022 2024 78 78 79 79 314 €:USD Period end 1.120 1.105 1.067 2023 77 78 79 78 312 Average 1.087 1.081 1.053 2022 77 78 79 79 313 €:CNY Period end 7.851 7
Slide 24: Continuous monitoring of clinical performance to enhance care
Continuous monitoring of clinical performance to enhance care Quality index components Dialysis effectiveness Measures how sufficiently the body is cleansed of waste substances Vascular access Quality index Measures the share of patients who do not receive dialysis via a dialysis catheter but Global
Slide 25: Patients, treatments, clinics
Patients, treatments, clinics as of September 30, 2024 as of September 30, 2023 Patients Treatments Clinics Patients Treatments Clinics United States 205,942 23,299,461 2,629 205,887 23,380,747 2,617 Growth in % 0 0 0 International 102,274 12,651,243 1,103 135,906 15,426,432 1,397 Growth in % -25 -1
Slide 26: IR event calendar
IR event calendar Date Event February 25, 2025 Report on Q4/FY 2024: Earnings Release and Conference Call Reporting AGM May 6, 2025 Report on Q1 2025: Earnings Release and Conference Call & May 22, 2025 Annual General Meeting August 5, 2025 Report on Q2 2025: Earnings Release and Conference Call CMD
Slide 27: Contacts
Contacts Fresenius Medical Care AG Investor Relations Else-Kröner-Str. 1 61352 Bad Homburg v. d. H. Germany Dr. Dominik Heger Ilia Kuerten Alicia Cahill Head of Investor Relations Vice President Senior Director ir@freseniusmedicalcare.com and Investor Relations Investor Relations Head of Investor
Fresenius Medical Care — Q3 2024 Earnings Presentation on 6ix