Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Investor Presentation (March 2021)
63 slides from Fresenius Se & Co. Kgaa's investor presentation, March 2021
Slide 1: Company Presentation March 2021
Company Presentation March 2021
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: Agenda
Agenda 02 03 04 01 Strategic update Financial review Attachments FY/21 FY/20 & Company Outlook FY/21 Highlights Company Presentation March 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 3
Slide 4: A Global Leader in Health Care Products and Services
A Global Leader in Health Care Products and Services in sales Long-term (FY/2020) opportunities in growing, € 36.3 bn non-cyclical markets Global presence Strong financial in 100+ performance countries and cash flow 100 + generation Leading Employees market worldwide positions (as of Dec 31, 2020) #
Slide 5: Investment Highlights
Investment Highlights Diversified healthcare Group Leading positions in Resilient business model with four strong business growing non-cyclical based on megatrends segments markets healthcare and demographics Purpose-driven business Strong financial Reliable delivers sustainable performance and cash
Slide 6: Global Trends offer Growth Opportunities for Fresenius
Global Trends offer Growth Opportunities for Fresenius 4x Increasing national income Generic GDP per capita quadrupled Growing drugs over last 20 years in emerging save the US markets and developing healthcare sector Growth in emerging healthcare 293bn +6,3% economies system4 markets over the next p
Slide 7: 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 8: Strategic Roadmap
Strategic Roadmap 3 Operational excellence Growth drivers Accelerate Capital allocation Strategic evaluation Significant cost savings 2 Launch Idacio in US Growth areas: Biosimilars, Fertility, Grow Digital services, Home-hemodialysis First meaningful cost savings Balance sheet flexibility 1 Continu
Slide 9: Growth Areas
Growth Areas Worldwide growing Growing Markets with Marketing of existing Attractive markets dialysis market High Entry Barriers value chain Strengthening Standardizing Attractive Market and extension medical procedures Product Pipeline consolidation of value chain Home dialysis Entry into attractiv
Slide 10: Environment, Social and Governance: Setting the right priorities in a COVID-19 world
Environment, Social and Governance Setting the right priorities in a COVID-19 world ESG priorities confirmed Sustainability progress in 2020 Corporate governance update “Better medicine for more people” Rating improvements across the board, New Management Board remuneration Highlights: CDP Climate f
Slide 11: Environment, Social and Governance: Refreshed Materiality analysis
Environment, Social and Governance Refreshed Materiality analysis in 2020 - core priorities confirmed, new topics added Well-being of the Digital Transformation Employees patient & Innovation Working conditions, recruitment Access to health care Digitilization & Innovation & employee participa
Slide 12: ESG Rating Overview
ESG Rating Overview Continuous Improvement through Reporting and Engagement CDP Climate: B 50/100 Current Score Prime C BBB 19.6 Low Risk CDP Water: C DJSI Europe Sector Average CDP Climate: C C- BBB - A 28 / 100 28.5 Medium Risk CDP Climate: C New methodology Previous Score Prime C BB 39/100 CDP Wa
Slide 13: Group: Global Sales Base in Growing, Non-Cyclical Markets
Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2020 Sales by Region Sales in € bn 6% 35,409 36,277 CAGR 33,886 33,530 Latin America Africa 29,471 4% 1% Asia-Pacific 10% €36.3 bn Europe 4,612 44% 4,830 4,688 4,302 4,561 North America 41% 2016 2017 2018 2019 2020 EBIT Before spe
Slide 14: Strong track record of organic sales growth
Strong track record of organic sales growth 5% 7% 7% 7% 7% CAGR 5% 5% 4% 4% 4% 6% 6% 3% 5% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 4% 3% 16% 16% 4% 6% 5% 5% 4% 4% 3% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 -8% ´16 ´17 ´18 ´19 ´20 Shaded areas show estimated COVID-19 effects Company Presentation Marc
Slide 15: 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 Health Care Services for Hospitals • Dialysis services • IV drugs • Acute care • Post-acute care • Hemodialysis produc
Slide 16: Fresenius Medical Care: Global Dialysis Market Leader
Fresenius Medical Care: Global Dialysis Market Leader • The world’s leading provider of dialysis Sales by Region Market Dynamics products and services treating ~347,000 patients1 in ~4,000 clinics1 Asia-Pacific North America Increase in worldwide demand • Provide highest standard of product and Lati
Slide 17: Fresenius Kabi: A Leading Global Hospital Supplier
Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for Sales by Region Market Dynamics critically and chronically ill patients • Strong Emerging Markets presence Emerging Markets Growing healthcare spending • Leading market positions 31% in Emerging Markets +6.3% p.
Slide 18: Fresenius Helios: Europe's Largest Private Hospital Operator
Fresenius Helios: Europe’s Largest Private Hospital Operator • Market leader in size and quality with Sales by Region Market Dynamics excellent growth prospects • ~5%1 share in German acute care Hospital market in Germany hospital ~12%1 share in Spanish private ~ € 109 bn hospital market • Quality i
Slide 19: Fresenius Vamed: Leading Global Hospital Projects and Services Specialist
Fresenius Vamed: Leading Global Hospital Projects and Services Specialist • Manages hospital construction/expansion Sales by Region Market Dynamics projects and provides services for health care facilities worldwide Telemedicine market in Europe Emerging Markets • Offers project development, plannin
Slide 20: Group: Medium-term Growth Targets 2020 – 2023
Fresenius Group: Medium-term Growth Targets 2020 – 2023 (CAGRs) 4 – 7% Organic sales growth (plus ~1% small to mid-size confirmed acquisitions) 5 – 9% Organic net income1 growth (plus ~1% small to mid-size acquisitions) confirmed 1 Net income attributable to shareholders of Fresenius SE & Co. KGaA B
Slide 21: Fresenius SE: Earnings-Linked Dividend Policy
Fresenius SE: Earnings-Linked Dividend Policy € per share 1 0.88 0.84 0.80 Track record 0.75 28th consecutive 0.62 dividend increase 0.55 CAGR dividend increase +15% 0.44 0.42 2020 0.37 Pay-out Ratio: 0.32 Dividend Policy 0.25 0.29 27% Pay-out Ratio 0.23 Dividend growth aligned Dividend to EPS2 grow
Slide 22: Share & Shareholder Structure
Fresenius Share & Shareholder Structure Share price development LTM Analyst recommendations Click to view our interactive share price tool Click to view downloadable set of the consensus data 110 Sell 5% 100 FRE 90 Accumulate/Add/Buy/ 80 DAX Equal-weight/Hold/ Outperform/Overweight 70 74% STOXX Euro
Slide 23: FRE Historical share price performance
FRE Historical share price performance April 2017 April 2018 Click to view our interactive share price tool Acquisition of Akorn and Termination of merger 90 € Merck KGaA's biosimilars agreement with Akorn business October 2018 80 € Fresenius confirms and narrows Group guidance for FY18 70 € March 2
Slide 24: Strategic update FY/21
Agenda 01 03 04 Company 02 Financial review Attachments Highlights FY/20 & Strategic Outlook FY/21 update FY/21 Company Presentation March 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 24
Slide 25: Strong track record of organic sales growth
Strong track record of organic sales growth 5% 7% 7% 7% 7% CAGR 5% 5% 4% 4% 4% 6% 6% 3% 5% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 4% 3% 16% 16% 4% 6% 5% 5% 4% 4% 3% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 -8% ´16 ´17 ´18 ´19 ´20 Shaded areas show estimated COVID-19 effects Company Presentation Marc
Slide 26: Strategic Roadmap
Strategic Roadmap 3 Operational excellence Growth drivers Accelerate Capital allocation Strategic evaluation Significant cost savings 2 Launch Idacio in US Growth areas: Biosimilars, Fertility, Grow Digital services, Home-hemodialysis First meaningful cost savings Balance sheet flexibility 1 Continu
Slide 27: Cost-efficiency program to be initiated
Cost-efficiency program to be initiated • Review of organizational structure and operating model • Streamlining activities in organizational structures and facilities/real estate and other synergy fields • Efficiency improvements globally and identification of other savings in indirect spend • Revie
Slide 28: Biosimilars gaining traction and will significantly accelerate growth
Biosimilars gaining traction and will significantly accelerate growth Launch schedule Sales projection Autoimmune Oncology Adalimumab Q1 High triple digit € m Q2 Introduced in 22 countries Q3 since launch 2019 Pegfilgrastim Pre-filled On Body Dossier acceptance for syringe Device review in May 2020
Slide 29: Environment, Social and Governance: Setting the right priorities in a COVID-19 world
Environment, Social and Governance Setting the right priorities in a COVID-19 world ESG priorities confirmed Sustainability progress in 2020 Corporate governance update “Better medicine for more people” Rating improvements across the board, New Management Board remuneration Highlights: CDP Climate f
Slide 30: Meet the Management – Conference Call Series
Meet the Management – Conference Call Series Q3/21: Fresenius Kabi - China: Driving profitable growth Q3/21: Fresenius Vamed - Accelerating growth post COVID-19 Q4/21: Fresenius Kabi - Clinical Nutrition: Capturing worldwide opportunities Q1/22: Fresenius Kabi – Biosimilars: Accelerating growth Q2/2
Slide 31: Financial review FY/20 & Outlook FY/21
Agenda 01 02 04 Company Strategic update 03 Attachments Highlights FY/21 Financial review FY/20 & Outlook FY/21 Company Presentation March 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 31
Slide 32: Group: Q4/20 profit and loss statement
Fresenius Group: Q4/20 profit and loss statement Sales EBIT +5% +2% Net Income Q4/20: €9,304 m Q4/20: €1,251 m +2% Income Tax Rate Net Interest Q4/20: €494 m 24.1% -€159 m Q4/19: 23.8% Q4/19: -€182 m All growth rates in constant currency (cc) Before special items Net income attributable to sharehold
Slide 33: Key Messages
Key Messages 2020 2021 Mid-term Successful despite Accelerated COVID-19 Expected recovery of Group-wide cost-efficiency unprecedented challenges: related excess mortality of elective treatments drives program to be initiated FY/20 Guidance achieved dialysis patients organic growth 28th consecutive d
Slide 34: COVID-19 Assumptions for Guidance FY/21
COVID-19 Assumptions for Guidance FY/21 Current burdens and constraints caused by COVID-19 expected only to begin to recede in H2/21 The guidance does not reflect impacts from potential containment measures without appropriate compensation for the health care sector Continuously advancing vaccinatio
Slide 35: FY/21 Financial Outlook by Business Segment
FY/21 Financial Outlook by Business Segment €m (except otherwise stated) FY/20 Base FY/20 FY/21e Low-to-mid Sales growth (org) 6,976 4% single-digit % Stable to low EBIT growth (cc) 1,095 -6% single-digit % Low-to-mid Sales growth (org) 9,818 4% single-digit % Mid-to-high EBIT growth (cc) 1,025 0% s
Slide 36: FY/21 Financial Guidance
FY/21 Financial Guidance €m (except otherwise stated) FY/20 Base FY/20 FY/21 Sales growth (cc) 36,277 5% Low-to-mid single-digit % Net income growth (cc) 1,796 -3% At least broadly stable Before special items and including estimated COVID-19 effects Net income attributable to shareholders of Freseni
Slide 37: Attachments
Agenda 01 02 03 Company Strategic update Financial review 04 Highlights FY/21 FY/20 & Outlook FY/21 Attachments Company Presentation March 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 37
Slide 38: Group: Easing COVID-19 impact whilst regaining business momentum
Fresenius Group: Easing COVID-19 impact whilst regaining business momentum Main drivers for FY/21 Expected COVID effects Higher mortality rate amongst dialysis patients Significant Elective treatments in China already from Q1/21 onwards Moderate Moderate Slight impact Slight impact almost at pre-COV
Slide 39: Fresenius Kabi: Headwinds in the US expected to continue
Fresenius Kabi: Headwinds in the US expected to continue, whilst Europe is projected for a gradual recovery and China is anticipated to be back to healthy growth North America Europe Emerging Markets H1/21 expected to still see fewer elective Ongoing recovery of elective treatments China expected to
Slide 40: Fresenius Kabi: Building the platform for decisive US growth
Fresenius Kabi: Building the platform for decisive US growth through strategic initiatives to diversify and differentiate portfolio, and expand in new therapies and channels Ready-to- Administer Advanced Products Complex Packaging and Prefilled Syringes, Generics Labeling Premixed Bags and Peptides
Slide 41: Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Regions
Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Regions Δ YoY Δ YoY €m Q4/20 organic FY/20 organic North America 549 -3% 2,376 0% Europe 680 9% 2,458 6% Emerging Markets 586 15% 2,142 6% Total sales 1,815 7% 6,976 4% Company Presentation March 2021 © Fresenius SE & Co. KGaA Investor Relations & S
Slide 42: Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Product Segment
Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Product Segment €m Q4/20 Δ YoY FY/20 Δ YoY organic organic IV Drugs 697 1% 2,921 3% Infusion Therapy 242 3% 810 -3% Clinical Nutrition 528 15% 1,945 7% Medical Devices/ 348 10% 1,300 7% Transfusion Technology Total sales 1,815 7% 6,976 4% Company Pr
Slide 43: Fresenius Kabi: Q4 & FY/20 EBIT Growth
Fresenius Kabi: Q4 & FY/20 EBIT Growth €m Q4/20 Δ YoY cc FY/20 Δ YoY cc North America 125 -33% 785 -12% Margin 22.8% -1,100 bps 33.0% -450 bps Europe 85 -1% 355 +9% Margin 12.5% -210 bps 14.4% +20 bps Emerging Markets 153 +29% 471 +5% Margin 26.1% +330 bps 22.0% +10 bps Corporate and Corporate R&D -
Slide 44: Fresenius Helios: Interlinked business model with leading market position
Fresenius Helios: Interlinked business model with leading market position offers a strong foundation to leverage network efficiencies and accelerate growth opportunities Increase digital connect with patients From prevention to Fields of innovation Regulatory environment Opportunities for growth int
Slide 45: Fresenius Helios: Acquisition of Eugin Group
Fresenius Helios: Acquisition of Eugin Group makes Fresenius Helios a leading international provider of fertility services with significant growth opportunities EBITDA Strong presence in Europe, LatAm, and U.S. Acquisition adds global network of fertility €m €35 to €40 million clinics 40 €31 million
Slide 46: Fresenius Helios: COVID-19 Update
Fresenius Helios: COVID-19 Update Occupancy rate deviation 2020 vs. 2019 Admissions 2020 vs. 2019 10% 100% 80% 60% 0% 40% 20% -10% 0% -20% -40% -20% -60% -80% -30% -100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Occupancy rate 2020 vs. Occupancy
Slide 47: Fresenius Helios: Q4 & FY/20 Key Financials
Fresenius Helios: Q4 & FY/20 Key Financials €m Q4/20 Δ YoY cc FY/20 Δ YoY cc Total sales 2,637 9%1 9,818 4%1 Thereof Helios Germany 1,637 8%1 6,340 6%1 Thereof Helios Spain 999 11%1 3,475 2%1 Total EBIT 328 13% 1,025 0% Margin 12.4% -10 bps 10.4% -70 bps Thereof Helios Germany 157 10% 602 4% Margin
Slide 48: Fresenius Helios: Key Metrics
Fresenius Helios: Key Metrics FY/20 FY/19 Δ No. of hospitals Germany 89 86 3% - Acute care hospitals 86 83 4% No. of hospitals Spain 52 50 4% (Hospitals) No. of beds Germany 29,978 28,907 4% - Acute care hospitals 29,451 28,380 4% No. of beds Spain 7,936 7,288 9% (Hospitals) Admissions Germany (acut
Slide 49: Fresenius Vamed: Gradual recovery of business ahead
Fresenius Vamed: Gradual recovery of business ahead; good order intakes despite COVID-19 COVID-19 headwinds to ease in the course of 2021 Recovery of project business in Q4/20 – solid order book Easing of travel restrictions expected for H2/21 Order intake in Q4/20 13% above prior year; overall orde
Slide 50: Fresenius Vamed: Q4 & FY/20 Key Financials
Fresenius Vamed: Q4 & FY/20 Key Financials €m Q4/20 Δ YoY cc FY/20 Δ YoY cc Total sales 577 -22% 2,068 -6% Thereof organic sales -22% -8% Service business 372 -1% 1,435 3% Project business 205 -44% 633 -22% Total EBIT 39 -42% 29 -79% Order intake1 648 13% 1,010 -23% Order backlog1 3,055 7%2 1 Projec
Slide 51: Group: Q4/20 Key Financials
Fresenius Group: Q4/20 Key Financials €m Q4/201 special Q4/20 Δ YoY cc1 items reported Sales 9,304 - 9,304 5% EBIT 1,251 -227 1,024 2% Net interest -159 3 -156 9% Income taxes -263 8 -255 -8% Net income2 494 -84 410 2% 1 Before special items 2 Net income attributable to shareholders of Fresenius SE
Slide 52: Group: Calculation of Noncontrolling Interests
Fresenius Group: Calculation of Noncontrolling Interests €m FY/20 FY/19 Earnings before tax and noncontrolling interests 3,958 3,974 Taxes -914 -925 Noncontrolling interests, thereof -1,248 -1,170 Fresenius Medical Care net income not attributable to Fresenius -922 -849 (Q4/20: ~68%) Noncontrolling
Slide 53: Group: Cash Flow
Fresenius Group: Cash Flow €m Q4/20 LTM Margin Δ YoY Operating Cash Flow 1,390 18.1% 8% Capex (net) -800 -6.6% 5% Free Cash Flow 590 11.5% 33% (before acquisitions and dividends) Acquisitions (net) -202 Dividends -59 Free Cash Flow 329 6.8% -- (after acquisitions and dividends) Company Presentation
Slide 54: Group: Estimated COVID-19 Effects Q4/20 & FY/20
Fresenius Group: Estimated COVID-19 Effects Q4/20 & FY/20 Growth cc Estimated as reported COVID-19 impact cc incl. COVID-19 Q4/201 FY/201 Q4/201 FY/201 Sales +5% +5% -2% to -3% -2% to -3% Net income2 +2% -3% -1% to -5% -5% to -9% 1 Before special items 2 Net income attributable to shareholders of Fr
Slide 55: Group: Proven Track Record of Deleveraging
Fresenius Group: Proven Track Record of Deleveraging Net Debt/EBITDA1 Hospitals from 4 3.7x 3 3.6x 3.6x 3 3.5x 3.5 3.5x 3 3,5 3.2x 3.4 3 3.4x 3 3.0x 3.0x 3.0x 3.1x 3 2.8x 2.7x 2.7x 2.7x 2.6x 2.7x 2.5 2,5 2.6x 2.6x 2.2x 2.5x 2.3x 2.3x 2 2 2002 2003 2004 2005 Q1/06 2006 2007 2008 2009 2010 2011 2012 2
Slide 56: Group: Major Long-Term Debt Maturities
1 Fresenius Group: Major Long-Term Debt Maturities Well-balanced Maturity Profile €m Except for the €750m Term Loan due in September all major 2021 maturities have already been repaid 4.000 4,000 Maturity 4.5 years on average 3.000 3,000 1,990 2.000 2,000 1,620 738 2,071 584 1,000 1.000 670 1,608 1,
Slide 57: Group: Sales by Business Segment – Q4/20 Effects
Fresenius Group: Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q4/20 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m Q4/20 Q4/19 rates effects rates growth tions Others Fresenius Medical Care 4,400 4,580 -4% -8% 4% 1% 3% 0% Fresenius K
Slide 58: Group: Sales by Business Segment – FY/20 Effects
Fresenius Group: Sales by Business Segment – FX, Acquisitions/Divestitures Effects FY/20 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m FY/20 FY/19 rates effects rates growth tions Others Fresenius Medical Care 17,859 17,477 2% -3% 5% 3% 3% -1% Fresenius
Slide 59: Group: Solid Balance Sheet Structure
Fresenius Group: Solid Balance Sheet Structure B/S total (€bn) 46.7 53.1 56.7 67.0 66.6 • Healthy Equity and Liability Split • Strong equity ratio of >40% on average 41% 40% 39% 45% 44% • Equity ratio kept in narrow range despite rapid growth of Fresenius Group 36% 33% 41% 39% 32% 23% 23% 23% 19% 22
Slide 60: Group: Financial Performance Indicators
Fresenius Group: Financial Performance Indicators Growth Profitability Liqudity Capital efficiency Capital management Sales growth Operating income (EBIT) Operating cash flow EBIT Net debt (in constant currency) +/ - Financial result ÷ Sales Income taxes ÷ EBITDA Sales growth - Income taxes = Cash f
Slide 61: Group: Performance Indicators 5-year overview
Fresenius Group1: Performance Indicators 5-year overview Targets 20202 2020 2019 2018 2017 2016 Sales growth (in constant currency) +3% to +6% 5% 6% 6% 16% 6% Net income3 growth (in constant currency) -4% to +1% -3% 0% 7% 21% 13% Liquidity and capital management Cash flow margin 12% to 14% 18.1% 12.
Slide 62: Business segments: Performance Indicators 5-year overview
Business segments1: Performance Indicators 5-year overview Targets 20202 2020 2019 2018 2017 2016 Fresenius Medical Care Sales growth Mid-to-high single-digit (in constant currency) %-range 5% 5% 4% 9% 7% Net income growth 3,4 Mid-to-high single-digit (in constant currency) %-range 12% -2% 4% 7% 16%
Slide 63: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar Contact 06 May 2021 Results Q1/21 Investor Relations & Sustainability 21 May 2021 Annual General Meeting Fresenius SE & Co. KGaA phone: +49 6172 608-2485 30 July 2021 Results Q2/21 e-mail: ir-fre@fresenius.com 02 November 2021 Results Q3/21 For further
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