Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q2 2024 Earnings Presentation
28 slides from Fresenius Medical Care's earnings presentation, Jul 30, 2024
Slide 1: Q2 2024 IR Conference Call
Analyst Presentation Helen Giza CEO & Chair of the Management Board Martin Fischer CFO July 30, 2024 Q2 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, Q2 Business Update, Outlook
1 Execution against strategic plan 2 Q2 Business Update 3 Outlook
Slide 4: Q2 2024 Highlights
Q2 2024 Highlights | Improving our financial performance while executing against our strategic plan and company transformation Care Delivery Care Enablement Treatment volume growth remains muted driven by Continued momentum of pricing initiatives continued elevated mortality levels Introductio
Slide 5: Q2 2024 | Key developments at Group level
Q2 2024 | Key developments at Group level Organic revenue growth of +2.3% supported by both segments Care Delivery and Care Enablement Operating income1 and operating income margin1 increase driven by Care Enablement Additional FME25 savings of EUR 57 million achieved and on track to reach the
Slide 6: Q2 Business Update
1 Execution against strategic plan 2 Q2 Business Update 3 Outlook
Slide 7: Q2 2024 | Revenue development driven by solid organic growth
Q2 2024 | Revenue development driven by solid organic growth Revenue | outlook base1 Operating income | outlook base1 in € million Margin in % 7.4% 8.4% 9.1% 8.9% +0.1% outlook base1 4,825 4,741 4,743 4,766 +8.3% in € million -84 +2.3% 23 outlook base1 3 433 425 organic 43 400 357 -11 Q2 2023 Divest
Slide 8: Q2 2024 | Operating margin improvement driven by Care Enablement
Q2 2024 | Operating margin improvement driven by Care Enablement Margin in % 8.4% 9.1% In € million 13 433 3 52 425 43 400 -4 -11 357 -28 Q2 2023 Special Q2 2023 Care Care Inter- Corporate Q2 2024 Fx Special items Q2 2024 operating items & 2023 operating Delivery Enablement segment operating operati
Slide 9: Q2 2024 | Care Delivery with organic growth despite flat U.S. volumes
Q2 2024 | Care Delivery with organic growth despite flat U.S. volumes Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % outlook base1 10.6% 9.9% -1.1% -7.0% outlook base1 3,786 3,743 400 18 -81 372 +1.7% 35 organic 3,082 3,124 Business FME25 Labor / growt
Slide 10: Q2 2024 | Care Enablement delivers on margin expansion
Q2 2024 | Care Enablement delivers on margin expansion Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % +3.3% 1.3% 5.1% outlook base1 outlook base1 1,322 1,365 +308% +3.2% organic -14 69 33 33 17 Q2 2023 Q2 2024 Q2 2023 Business FME25 Inflation Q2 2024 o
Slide 11: Q2 2024 | Lower net financial debt and further improved net leverage ratio
Q2 2024 | Lower net financial debt and further improved net leverage ratio in € million Q2 2024 Q2 2023 H1 2024 H1 2023 Key developments in Q2 2024 Operating cash flow 442 1,007 570 1,150 Operating cash flow decreased by 56%, negatively impacted by Capital expenditures, net -153 -155 -283 -296 o
Slide 12: Outlook
1 Execution against strategic plan 2 Q2 Business Update 3 Outlook
Slide 13: Outlook | FY 2024 assumptions
Outlook | FY 2024 assumptions H1 Update 0.5 125– 2.0% U.S. same market treatment growth1 flat to 0.5% -0.2% Business growth2 197 400-500 Earnings tailwinds Incremental sustainable FME25 savings 100-150 109 150-200 102 Higher labor costs, mainly in CD 100-150 72 Cost inflation in both CE and CD
Slide 14: 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 Mid- to high-teens Operating income percent growth (outlook base)1 FY 2023 basis: EUR 1.54bn Revenue
Slide 15: Your questions are welcome.
Your questions are welcome.
Slide 16: Appendix
Appendix
Slide 17: Q2 2024 | Profit and Loss
Q2 2024 | Profit and Loss Q2 2024 Q2 2023 Growth Growth € million € million in % in % cc Revenue 4,766 4,825 -1 -2 Revenue (outlook base)1 4,743 4,741 0 Operating income 425 357 19 21 Operating income margin in % 8.9 7.4 Operating income (outlook base)1 433 400 8 Operating income margin (outlook bas
Slide 18: H1 2024 | Profit and Loss
H1 2024 | Profit and Loss H1 2024 H1 2023 Growth Growth € million € million in % in % cc Revenue 9,491 9,529 0 0 Revenue (outlook base)1 9,565 9,360 2 Operating income 671 618 9 10 Operating income margin in % 7.1 6.5 Operating income (outlook base)1 849 738 15 Operating income margin (outlook base)
Slide 19: 2023 base for 2024 targets, reconciliation adjustments
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 Q2 2024 Q2
Slide 20: 2023 base for 2024 targets, reconciliation adjustments
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 H1 2024 H1
Slide 21: Debt
Debt Q2 2024 FY 2023 FY 2022 € million € million € million Debt Short-term debt from unrelated parties 322 457 644 + Short-term debt from related parties - - 4 + Current portion of long-term debt 481 487 694 + Current portion of lease liabilities from unrelated parties 592 593 650 + Current portion
Slide 22: EBITDA
EBITDA Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q2 2024 FY 2023 FY 2022 € million € million € million Net income 762 732 895 + Income tax expense 314 301 325 − Interest income -85 -88 -68 + Interest expense 432 424 360 + Dep
Slide 23: 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. 4.5% adj. 4.9% rep. 3.5% rep. 3.3% rep. 2.8% rep. 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 2024 For the years
Slide 24: 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 Q2 2024 FY 2023 FY 2022 2024 78 78 79 79 314 €:USD Period end 1.071 1.105 1.067 2023 77 78 79 78 312 Average 1.081 1.081 1.053 2022 77 78 79 79 313 €:CNY Period end 7.775 7
Slide 25: 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 26: Patients, treatments, clinics
Patients, treatments, clinics as of June 30, 2024 as of June 30, 2023 Patients Treatments Clinics Patients Treatments Clinics United States 206,306 15,412,884 2,628 206,692 15,525,016 2,634 Growth in % 0 -1 0 International 104,731 8,706,925 1,129 137,394 10,287,972 1,416 Growth in % -24 -15 -20 Tota
Slide 27: IR event calendar
IR event calendar Date Event Reporting November 5, 2024 Report on 3rd quarter 2024: Earnings Release and Conference Call (Quiet Period Oct 22 – Nov 4,2024) February 25, 2025 Report on 4th quarter / Full Year 2024: Earnings Release and Conference Call (Quiet Period Jan 28 – Feb 02, 2025) September 3,
Slide 28: 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
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