Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Q2 2023 Earnings Presentation
37 slides from Fresenius Se & Co. Kgaa's earnings presentation, Nov 2, 2023
Slide 1: Progress on #FutureFresenius: Operating Companies showing consistent performance
Progress on #FutureFresenius: Operating Companies showing consistent performance, Group simplification delivered Bad Homburg, 2 August 2023
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: Business update
1 Business update 2 Financial review Q2/23 3 #FutureFresenius
Slide 4: #FutureFresenius – focus on value creation
H1/Q2: Strong performance and consistent progress with #FutureFresenius Strong operating performance for Kabi and Helios in H1/23 Group simplification delivered; VAMED turnaround underway Structural productivity gains accelerating Board streamlined in line with #FutureFresenius Divestment pr
Slide 5: Strong Q2/23 at Operating Companies; VAMED restructuring underway
Strong Q2/23 at Operating Companies; VAMED restructuring underway OPERATING COMPANIES INVESTMENT COMPANY Revenue cc growth Revenue EBIT €5.1bn +9% €0.5bn -€20m EBIT cc growth New Governance set up €575m +5% Redirection underway Strong top-line performance Re-focused on the 3 distinct assets
Slide 6: Operating Companies: Kabi and Helios delivering
Operating Companies: Kabi and Helios delivering 14 - 17 9-11 EBIT (MARGIN) €285m 14.2% €311m 10.0% REVENUE 4 - 7 3-5 (ORG. GROWTH) €2.0bn +8% €3.1bn +7% KEY Excellent organic revenue growth fueled Very strong organic revenue growth MESSAGES by double-digit increases for total of above growth ban
Slide 7: Major milestone reached - deconsolidation process well advanced
Major milestone reached - deconsolidation process well advanced EGM approves legal form change FSE stake with significant value accretion FME operational turnaround progresses Q2/23 Results, 2 August 2023 © Fresenius SE & Co. KGaA Investor Relations 7
Slide 8: Advancing patient care – expanding portfolio of specialized healthcare products
Advancing patient care – expanding portfolio of specialized healthcare products Recent highlights Kabi’s tocilizumab biosimilar receives positive opinion on Marketing Authorization Application for Europe Fresenius Kabi launches its biosimilar adalimumab Idacio in the U.S. Fresenius Kabi expands crit
Slide 9: Advancing patient care – innovating across our healthcare services network
Advancing patient care – innovating across our healthcare services network Recent highlights New data by Quirónsalud in NEJM Catalyst on HOPE project for improving patient experience & clinical outcomes in oncology Helios Duisburg opens new state-of-the-art intracardiac catheter area and laboratorie
Slide 10: Financial review Q2/23
1 Business update 2 Financial review Q2/23 3 #FutureFresenius
Slide 11: Q2/23 – Excellent performance by Operating Companies
Q2/23 – Excellent performance by Operating Companies Excellent revenue growth of 7% in constant currency; Operating Companies showing €10.4bn €956m €555m 9% y-o-y growth +15%1 0% EBIT growth reflects strong performance of +7% Operating Companies and operational turnaround at FMC REVENUE EBIT EBI
Slide 12: Fresenius Kabi posts strong growth momentum
Fresenius Kabi posts strong growth momentum Q2/23 results QUARTERLY FINANCIALS MAIN DEVELOPMENTS Strong organic revenue growth Nutrition, MedTech and Biopharma 14.3% 14.5% 14.2% additive to Kabi growth rate 2,000 EBIT Margin Improving growth in Pharma 13.5% EBIT margin remains above 14% and
Slide 13: Fresenius Helios delivering strong quarter
Fresenius Helios delivering strong quarter Q2/23 results QUARTERLY FINANCIALS MAIN DEVELOPMENTS 3,500 Strong organic revenue growth 10.4% 11.7% 10.0% mainly driven by excellent activity levels at Helios Spain as well as 10.1% EBIT Margin Fertility 3,000 7.8% Helios Germany with solid top-line de
Slide 14: Fresenius Vamed: Weak quarter – transformation underway
Fresenius Vamed: Weak quarter – transformation underway Q2/23 results QUARTERLY FINANCIALS TRANSFORMATION OVERVIEW 900 Comprehensive transformation and restructuring program 2.0% including substantial adjustments to business model and 1.7% volume − Re-dimensioning of activities and material reduct
Slide 15: Major milestone achieved – positive EGM vote on change of FMC legal form
Major milestone achieved – positive EGM vote on change of Fresenius Medical Care’s legal form Incl. FMC Excl. FMC Approval of legal form change 2023 €m Q2/23 Q2/23 on July 14 Revenue 10,359 5,557 Start of IFRS 5 Application EBIT 956 555 FMC will be represented in one single item line in FSE’s P&L an
Slide 16: Operating cash flow solid in Q2/23
Operating cash flow solid in Q2/23 €m Q2/23 Q2/22 Q2/23 Q2/22 Q2 OCF increased by 17% LTM LTM over prior year quarter OCF 1,186 1,017 4,441 4,093 Kabi and FMC with strong OCF performance % OCF Margin 11.4% 10.2% 10.7% 10.5% Higher working capital weighs Capex -395 -436 -1,732 -1,899 on Helios
Slide 17: Cost savings program progressing well
Cost savings program progressing well Planned until 2025 Focus on 2023 Cost savings – EBIT view Expected Delivered ~€1,000m 2023 in H1 Thereof FME Cost savings program is fully on ~€650m track to deliver on 2023 targets ~ €450m EBIT savings achieved – €500m ~ €280m and beyond ~ €250m ~ €135m ~5
Slide 18: Outlook for FY/23 presented in new format
Outlook for FY/23 presented in new format given progressing Group simplification Fresenius Group Revenue growth excluding FMC (organic): EBIT (cc growth) excluding FMC: Mid-single-digit growth Broadly flat-to-mid-single-digit decline Operating Companies Investment Companies Mid-single-digit With
Slide 19: #FutureFresenius
1 Business update 2 Financial review Q2/23 3 #FutureFresenius
Slide 20: #FutureFresenius – Driving value and performance
#FutureFresenius – Driving value and performance Deliver 2023 and upgrade performance 2024+ Complete FMC deconsolidation Positive EGM votes Operational carve-out being executed Kabi and Helios: Focus, transparency, performance Strong H1/23 at Operating Companies New Kabi Executive Leadership
Slide 21: Appendix
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Slide 22: FY/23 – Other financial KPIs for Fresenius Group excluding FMC
FY/23 – Other financial KPIs for Fresenius Group excluding FMC With adoption of IFRS 5 – Guidance to be provided ex FMC only: H1/23 (ex FMC) Higher interest rates leading to increased interest expenses of €400 to €440m Profitability Interest expense €191 m depending on refinancing activities Tax rat
Slide 23: Capital efficiency and returns to be improved over next quarters
Capital efficiency and returns to be improved over next quarters ROIC CCR NET DEBT/EBITDA1 10% 1.4 1.3 4.0 x 3.88 3.79 9% 1.2 1.1 1.1 3.65 3.61 8% 1.2 2 3.51 1.0 1.1 2 3.44 6.7 6.5 3.5 x 7% 5.9 0.8 0.7 6% 5.1 4.8 4.6 0.6 5% 3.0 x 4% 0.4 Q2/22: 5.5 LTM H1/22: 0.9 Q2/22: 3.72 3% 0.2 2% 0.0 2.5 x 2019
Slide 24: Fresenius Kabi: Q2/23 & H1/23 Organic Revenue Growth by Product Group
Fresenius Kabi: Q2/23 & H1/23 Organic Revenue Growth by Product Group Δ YoY Δ YoY €m Q2/23 organic H1/23 organic MedTech 365 9% 744 9% Nutrition 614 13% 1,216 11% Biopharma 83 34% 153 44% Growth Vectors1 1,062 12% 2,113 11% Pharma 952 6% 1,892 5% (IV Drugs & Fluids) Total revenue 2,001 8% 3,992 8% 1
Slide 25: Fresenius Kabi: Q2/23 & H1/23 EBIT(DA) development
Fresenius Kabi: Q2/23 & H1/23 EBIT(DA) development €m Q2/23 Δ YoY cc H1/23 Δ YoY cc Total EBITDA 400 6% 803 3% Margin 20.0% 0 bps 20.1% -60 bps Growth Vectors1 88 12% 184 -5% Margin 8.3% -10 bps 8.7% -140 bps Pharma (IV Drugs & Fluids) 206 7% 403 5% Margin 21.6% +50 bps 21.3% +50 bps Corporate -8 -1
Slide 26: Fresenius Helios: Q2/23 & H1/23 Key Financials
Fresenius Helios: Q2/23 & H1/23 Key Financials €m Q2/23 Δ YoY cc H1/23 Δ YoY cc Total revenue 3,113 7%1 6,179 6%1 Thereof Helios Germany 1,823 4%1 3,651 3%1 Thereof Helios Spain 1,223 12%1 2,393 10%1 Thereof Helios Fertility 68 11%1 134 14%1 Total EBIT 311 3% 622 3% Margin 10.0% -40 bps 10.1% -30 bp
Slide 27: Fresenius Helios: Key Metrics
Fresenius Helios: Key Metrics H1/23 FY/22 Δ Helios Germany Hospitals 87 87 0% - Acute care hospitals 84 84 0% Beds 30,110 30,352 -1% - Acute care hospitals 29,544 29,786 -1% Admissions 2,784,615 5,508,158 - patients treated in hospital 566,798 1,079,776 - patients treated as outpatient 2,217,817 4,4
Slide 28: Fresenius Vamed: Q2/23 & H1/23 Key Financials
Fresenius Vamed: Q2/23 & H1/23 Key Financials €m Q2/23 Δ YoY cc H1/23 Δ YoY cc Total revenue 531 -6% 1,114 3% Thereof organic revenue -7% 3% Project business 88 -39% 235 -7% Service business 443 5% 879 6% Total EBIT1 -20 -- -47 -- Order intake2 179 -29% 222 -57% Order backlog2 3,2803 -12%4 1 Before
Slide 29: Fresenius Group: Calculation of Noncontrolling Interests
Fresenius Group: Calculation of Noncontrolling Interests €m H1/23 H1/22 Earnings before tax and noncontrolling interests 1,510 1,768 Taxes -395 -404 Noncontrolling interests, thereof -351 -451 Fresenius Medical Care net income not attributable to Fresenius -223 -292 (FY/22: ~68%) Noncontrolling inte
Slide 30: Fresenius Group: Cash Flow
Fresenius Group: Cash Flow €m Q2/23 Q2/23 LTM Δ YoY LTM Margin Operating Cash Flow 1,186 4,441 10.7% 17% Capex (net) -395 -1,732 -4.2% 9% Free Cash Flow 791 2,709 6.5% 36% (before acquisitions and dividends) Acquisitions (net) 10 -508 Dividends -831 -1,017 Free Cash Flow -30 1,184 2.8% 92% (after ac
Slide 31: Fresenius Group: Reconciliation adjusted Free Cash Flow for CCR
Fresenius Group: Reconciliation adjusted Free Cash Flow for CCR €m Q2/23 Q2/22 H1/23 H1/22 Operating Cash Flow 1,186 1,017 1,361 1,118 Capex (net) -395 -436 -747 -792 Free Cash Flow 791 581 614 326 (before acquisitions and dividends) Special items (net income before minorities) -6 +119 +85 +201 Inte
Slide 32: Cash Flow development Q2/23
Cash Flow development Q2/23 Operating Cash Flow Capex (net) Free Cash Flow1 €m Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Margin Margin Margin Margin Margin Margin 180 109 9.0% 5.7% -83 -110 -4.2% -5.8% 97 -1 4.8% -0.1% 61 194 2.0% 6.6% -125 -146 -4.1% -5.0% -64 48 -2.1%
Slide 33: Cash Flow development Q2/23 LTM
Cash Flow development Q2/23 LTM Operating Cash Flow Capex (net) Free Cash Flow1 €m Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 Q2/23 Q2/22 LTM LTM Margin Margin LTM LTM Margin Margin LTM LTM Margin Margin 800 970 9.9% 13.1% -480 -502 -5.9% -6.8% 320 468 4.0% 6.3% 1,478 824 12.3% 7.3%
Slide 34: Revenue by Business Segment – FX, Acquisitions/Divestitures Effects Q2/23
Revenue by Business Segment – FX, Acquisitions/Divestitures Effects Q2/23 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m Q2/23 Q2/22 rates effects rates growth tions Others Fresenius Kabi 2,001 1,896 6% -5% 11% 8% 3% 0% Fresenius Helios 3,113 2,925 6% -1
Slide 35: Revenue by Business Segment – FX, Acquisitions/Divestitures Effects H1/23
Revenue by Business Segment – FX, Acquisitions/Divestitures Effects H1/23 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m H1/23 H1/22 rates effects rates growth tions Others Fresenius Kabi 3,992 3,743 7% -3% 10% 8% 2% 0% Fresenius Helios 6,179 5,856 6% 0%
Slide 36: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar Social Media 02 November 2023 Results Q3/23 Follow Fresenius Investor Relations on LinkedIn: Please note that these dates could be subject to change. Contact Investor Relations For further information and current news: www.fresenius.com Fresenius SE &
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