Fresenius Se & Co. Kgaa · XETR:FRE

Fresenius Se & Co. Kgaa — Crédit Agricole CIB High Yield Conference 2015

43 slides from Fresenius Se & Co. Kgaa's conference presentation, Mar 11, 2015

  1. Slide 1: Health Care Worldwide

    Health Care Worldwide Crédit Agricole CIB – High Yield Conference March 11, 2015 – London Crédit Agricole CIB – High Yield Conference © Copyright Page 1

  2. 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

  3. Slide 3: Agenda

    Agenda Company Overview Business Segments - Fresenius Medical Care - Fresenius Kabi - Fresenius Helios - Fresenius Vamed Financial Overview Financing Facilities and Debt Structure Summary and Outlook Crédit Agricole CIB – High Yield Conference © Copyright Page 3

  4. Slide 4: Company Overview

    Company Overview Crédit Agricole CIB – High Yield Conference © Copyright Page 4

  5. Slide 5: A Global Leader in Health Care Products and Services

    A Global Leader in Health Care Products and Services - Sales €23.2bn, net income1 €1.8bn for 2014 - Strong and well-diversified portfolio - Global presence in approx. 100 countries - Long-term opportunities in growing markets - Leading market positions 1 – Net income incl. attributable to non-contro

  6. Slide 6: Strong and Balanced Health Care Portfolio

    Fresenius Group: Strong and Balanced Health Care Portfolio Sales 2014 €23.2 bn EBITDA 20141 €4.1 bn S&P: BBB- stable Market Cap.2 €26.8 bn Moody‘s: Ba1 stable Group EV3 €56.0 bn Fitch: BB+ positive ~ 31% 100% 100%4 77%4 Sales 2014 $15,832 m €5,146 m €5,244 m €1,042 m EBITDA 2014 $2,954 m €1,084 m6 €

  7. Slide 7: Sales Distribution by Region – 2014

    Fresenius Group: Sales Distribution by Region – 2014 Asia-Pacific Africa 9% 2% Latin America 5% Europe €23.2 bn 44% North America 40% Crédit Agricole CIB – High Yield Conference © Copyright Page 7

  8. Slide 8: Financial Results

    Fresenius Group: Financial Results €m 23,231 Sales 19,290 20,331 +16% cc 5-year CAGR: 8% 15,972 16,3613 3,158 EBIT1 14,164 +4% cc 5-year CAGR: 6% 3,075 3,045 2,418 2,563 1,831 Net Income1,2 2,054 1,778 +3% cc 5-year CAGR: 9% 1,707 1,408 1,243 1,011 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2

  9. Slide 9: Organic Growth 1999 – 2014

    Fresenius Group: Organic Growth 1999 – 2014 Target: > 2x World GDP 9% Growth 9% 8% 8% 8% 7% 7% 7% 6% 6% 6% 6% 4% 4% 4% 3% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Crédit Agricole CIB – High Yield Conference © Copyright Page 9

  10. Slide 10: Sustainable Organic Sales Growth in all Business Segments

    Fresenius Group: Sustainable Organic Sales Growth in all Business Segments Fresenius Medical Care Fresenius Kabi 12% 9% 9% 9% 8% 8% 7% 6% 5% 5% 5% 5% 4% 2% 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 25% Fresenius Helios Fresenius Vamed 7% 15% 15% 13% 5% 5% 5% 4% 4% 3% 5% 4

  11. Slide 11: Business Segments

    Business Segments Crédit Agricole CIB – High Yield Conference © Copyright Page 11

  12. Slide 12: Fresenius Medical Care: Global Market Leader in Dialysis

    Fresenius Medical Care: Global Market Leader in Dialysis - World leader in dialysis products and services Industry Dynamics treating 286,312 patients in 3,361 clinics ~6% global patient growth p.a. ~3.8 million patients by 2020 expected worldwide1 Patients in million ~3.8 - Provide highest standard

  13. Slide 13: Fresenius Medical Care: Key Figures 2014

    Fresenius Medical Care: Key Figures 2014 $€ million million Q1/2013 2014 Q1/2012 2013 Growth Total Sales 15,832 14,610 +8%1 EBITDA 2,954 2,904 +2% EBITDA margin 18.7% 19.9% EBIT 2,255 2,256 0% EBIT margin 14.2% 15.4% Net income 1,045 1,110 -6% 1 – 5% organic growth, 5% acquisitions , -2% currency ef

  14. Slide 14: Fresenius Kabi: A Worldwide Leading Hospital Supplier

    Fresenius Kabi: A Worldwide Leading Hospital Supplier - Comprehensive product portfolio for critically and 2014 Sales by Region chronically ill patients - IV Drugs 29% - Clinical Nutrition Emerging markets €1,513 m - Infusion Therapy 41% - Medical Devices / Transfusion Technology €5.1 bn Europe €2,1

  15. Slide 15: Fresenius Kabi: Strong Growth Track Record & High Profitability

    Fresenius Kabi: Strong Growth Track Record & High Profitability Sales in € m EBITDA1 in € m EBITDA1 Margin (in %) CAGR CAGR 14% 15% 5,146 4,996 1,143 4,539 1,101 24% 24% 24% 24% 1,084 23% 22% 3,964 21% 955 20% 3,672 893 3,086 742 2,495 544 2,030 408 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008

  16. Slide 16: Fresenius Kabi: Key Figures 2014

    Fresenius Kabi: Key Figures 2014 € million 2014 2013 Growth 1 Sales 5,146 4,996 3% - Infusion Therapy 977 980 0% - I.V. Drugs 1,813 1,733 5% - Clinical Nutrition 1,384 1,332 4% - Medical Devices/ Transfusion Technology 972 951 2% 2 EBITDA 1,084 1,143 -5% EBITDA margin 21.1% 22.9% 2 EBIT 873 926 -6%

  17. Slide 17: Fresenius Helios: Leading Private Hospital Operator in Germany

    Fresenius Helios: Leading Private Hospital Operator in Germany Majority of population has access to a - Acute and post-acute care in 110 proprietary HELIOS hospital within one hour‘s drive hospitals1 - High-quality medical care (e.g., mortality rate for heart failure and pneumonia >30% below German

  18. Slide 18: Fresenius Helios: Strong Growth Track Record & Increased Profitability

    Fresenius Helios: Strong Growth Track Record & Increased Profitability Sales in € m EBITDA in € m CAGR 1 CAGR 732 5,244 19% 16% 508 3,393 3,200 432 2,665 369 2,416 2,520 318 2,123 286 1,841 251 220 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 1 – Before special ite

  19. Slide 19: Fresenius Helios: Key Figures 2014

    Fresenius Helios: Key Figures 2014 € million 2014 2013 Growth 1 Sales 5,244 3,393 +55% EBITDA2 732 508 +44% EBITDA margin 14.0% 15.0% EBIT2 553 390 +42% EBIT margin 10.5% 11.5% 3 Net income 400 275 +45% 1 – 4% organic growth, 53% acquisitions, -2% divestitures 2– 2014 before integration costs (€51 m

  20. Slide 20: Fresenius Vamed: A Leading Global Specialist in Hospital Projects and Services

    Fresenius Vamed: A Leading Global Specialist in Hospital Projects and Services - Specialized in project development building 2014 Sales by Business hospital infrastructure and providing hospital services (technical services and operational management) 46% Services €484 m €1,042 m - Track record: 54%

  21. Slide 21: Fresenius Vamed: Key Figures 2014

    Fresenius Vamed: Key Figures 2014 € million 2014 2013 Growth Total Sales 1,042 1,020 2% 1 EBITDA 71 65 9% EBITDA margin 6.8% 6.4% EBIT 59 55 7% EBIT margin 5.7% 5.4% Net income 41 37 11% Order intake2 840 744 13% 1 – 2% acquisitions 2 – project business only Crédit Agricole CIB – High Yield Conferen

  22. Slide 22: Financial Overview

    Financial Overview Crédit Agricole CIB – High Yield Conference © Copyright Page 22

  23. Slide 23: Demonstrated Strong Sales and EBITDA Growth

    Fresenius Group: Demonstrated Strong Sales and EBITDA Growth Sales in € bn EBITDA1 in € bn CAGR 4.1 CAGR 3.9 3.9 11% 11% 23.2 3.2 20.3 3.1 19.3 2.6 16.0 16.4 2.3 14.2 2.0 12.3 11.4 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 1 – Before special items Crédit Agricol

  24. Slide 24: Fresenius Group: Key Figures 2014

    Fresenius Group: Key Figures 2014 2014 2013 Change Change € million actual constant rates rates Sales 23,231 20,331 +14% +16%1 EBITDA2 4,095 3,888 +5% +6% EBIT2 3,158 3,045 +4% +4% Interest, net -602 -584 -3% -4% EBT2 2,556 2,461 +4% +4% Taxes -725 -683 -6% -7% Net income3,4 1,831 1,778 3% +3% Emplo

  25. Slide 25: Financial Results by Business Segment 2014

    Fresenius Group: Financial Results by Business Segment 2014 Q4 /2014 Growth 2014 Growth Sales $4,320 m 12% $15,832 m 8% EBIT $663 m 0% $2,255 m 0% Sales €1,386 m 11% €5,146 m 3% EBIT1 €239 m 3% €873 m -6% Sales €1,361 m 59% €5,244 m 55% EBIT1 €156 m 44% €553 m 42% Sales €387 m 6% €1,042 m 2% EBIT €3

  26. Slide 26: Fresenius Group: Cash Flow

    Fresenius Group: Cash Flow € million 2014 Margin 2013 Margin Growth Operating Cash Flow 2,585 11.1% 2,320 11.4% 11% Capex (net) -1,323 -5.7% -1,047 -5.1% -26% Free Cash Flow 1,262 5.4% 1,273 6.3% -1% (before acquisitions and dividends) Acquisitions (net) -2,028 -2,556 21% Dividends -582 -491 -19% Fr

  27. Slide 27: Cash Flow Development 2014

    Cash Flow Development 2014 € million Operating CF Capex (net) Free Cash Flow1 2014 Margin 2014 Margin 2014 Margin 641 12.5% -352 -6.9% 289 5.6% 3 558 10.6% -263 -5.0% 295 5.6% -9 -0.9% -9 -0.8% -18 -1.7% Corporate/ Other -6 n.a. -7 n.a. -13 n.a. 2 2 excl. FMC 1,184 11.0% -631 -5.5% 553 5.5% Group 2,

  28. Slide 28: Debt and Interest Ratios

    Fresenius Group: Debt and Interest Ratios Dec 31, Dec 31, Net debt/EBITDA 2014 2013 3.40 3.44 3.41 Debt (€m) 15,454 12,804 3.26 3.32 thereof 48% US$ 3.26 denominated 3.07 Net debt (€m) 14,279 11,940 Net debt/EBITDA 3.411,2 2.513 2.60 2.57 2.72 2.63 EBITDA/Interest4 6.8 6.7 at actual at annual averag

  29. Slide 29: Proven Track Record of Deleveraging

    Fresenius Group: Proven Track Record of Deleveraging Acquisition Acquisition Acquisition of Renal of APP of hospitals Care Group Pharmaceuticals from Rhön-Klinikum 3.6x 3.5x 3.4x 3.4x 3.4x 3.2x 3.2x 3.0x 3.0x 3.0x 2.8x 2.7x Target 2015 YE6: ~3.0 2.6x 2.6x 2.6x 2.5x 2.2x 2.3x 2001 2002 2003 2004 2005

  30. Slide 30: Financing Facilities and Debt Structure

    Financing Facilities and Debt Structure Crédit Agricole CIB – High Yield Conference © Copyright Page 30

  31. Slide 31: Current Debt and Cash Flow Structure as of Dec 31, 2014

    Fresenius Group: Current Debt and Cash Flow Structure as of Dec 31, 2014 €14,279 m Total Net Debt1 Total Net Debt €7.0 bn €6,929 m Net Debt2 Profit transfer Profit transfer Profit transfer Agreements, Agreements, Agreements, Market Value Upstream Upstream Upstream ~ €6.5 bn Guarantee Guarantee Guara

  32. Slide 32: Fresenius Medical Care: Debt Maturity Profile

    Fresenius Medical Care: Debt Maturity Profile 1 December 31, 2014 Maturity 4.5 years on average 1 – based on utilization of major long-term financing instruments Crédit Agricole CIB – High Yield Conference © Copyright Page 32

  33. Slide 33: Fresenius excluding FMC: Debt Maturity Profile

    Fresenius excluding FMC: Debt Maturity Profile1 December 31, 2014 – Pro Forma FSE Amend & Extend Maturity 3.8 years on average 1 – based on utilization of major long-term financing instruments; pro forma for amendment of the 2013 Credit Agreement as of February 12, 2015 Crédit Agricole CIB – High Yi

  34. Slide 34: Debt Maturity Profile – Pro Forma FSE Amend & Extend

    Fresenius Group: Debt Maturity Profile1 December 31, 2014 – Pro Forma FSE Amend & Extend 2,600 2,400 Maturity 2,200 4.1 years on 2,000 average 1,800 1,600 in € million 1,400 1,200 1,000 800 600 400 200 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fresenius Medical Care Fresenius excl. FMC 1 –

  35. Slide 35: Capitalization December 31, 2014 – Pro Forma FSE Amend & Extend

    Fresenius Group: Capitalization December 31, 2014 – Pro Forma FSE Amend & Extend in € million in $ million4 % of total cap EBITDA 2014 x FSE 2013 Credit Agreement: Term Loan A (€, US-$) 1,850 2,246 3.3% FSE 2013 Credit Agreement: Term Loan B (US-$) 406 493 0.7% 8.750% and 9.000% Senior Notes due 201

  36. Slide 36: Summary and Outlook

    Summary and Outlook Crédit Agricole CIB – High Yield Conference © Copyright Page 36

  37. Slide 37: Fresenius Medical Care: Financial Outlook 2015 and beyond

    Fresenius Medical Care: Financial Outlook 2015 and beyond Long term target 2016 2015 E 2020 projection CAGR 2015-2020 5-7% 9-12% Sales ~10% 10-12%cc 9-12%cc Net Income 0-5% 15-20% High single digit - The outlook is based on exchange rates prevailing at the beginning of 2015 - Information includes sa

  38. Slide 38: 2015 Financial Outlook by Business Segment

    Fresenius Group: 2015 Financial Outlook by Business Segment Fresenius Sales growth organic 3% – 5% Kabi EBIT growth constant currency 4% – 6% Sales growth organic 3% – 5% Fresenius Sales growth reported 6% – 9% Helios EBIT €630 – 650 m Fresenius Sales growth organic single digit % Vamed EBIT growth

  39. Slide 39: 2015 Financial Outlook

    Fresenius Group: 2015 Financial Outlook Revenue growth 7% ‒ 10% at constant currency Net income growth1,2 9% ‒ 12% at constant currency 1- Net income attributable to shareholders of Fresenius SE & Co. KGaA 1- 2015 before integration costs (hospitals of Rhön-Klinikum AG ~€10 million before tax), befo

  40. Slide 40: Ideal Strategic Posture to Benefit from Major Healthcare Trends

    Fresenius Group: Ideal Strategic Posture to Benefit from Major Healthcare Trends Aging population and higher incidence of chronic diseases World population aged 60+ will more than double by 2050 to >2 bn (OECD) Increasing health care spending in emerging markets Increasing health care coverage and p

  41. Slide 41: Attractive Mid-Term Growth Prospects

    Fresenius Group: Attractive Mid-Term Growth Prospects Mid-Term Target ~ €30 billion sales €1.4 to €1.5 billion net income1 by 2017 Strong and Balanced Health Care Portfolio 1 – excl. attributable to non-controlling interest Crédit Agricole CIB – High Yield Conference © Copyright Page 41

  42. Slide 42: Investment Highlights

    Investment Highlights Leading market positions Diversified revenue base with four strong business segments Global presence in growing, non-cyclical markets Proven ability to integrate acquisitions Clear track record of and commitment to de-leveraging Strong financial performance and cash flow genera

  43. Slide 43: Health Care Worldwide

    Health Care Worldwide Crédit Agricole CIB – High Yield Conference © Copyright Page 43

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