Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Debt Investor Presentation (May 2017)
41 slides from Fresenius Se & Co. Kgaa's debt investor presentation, May 2017
Slide 1: Presentation to Credit Investors
Presentation to Credit Investors May 2017 Frankfurt stock exchange: FRE │ US ADR program: FSNUY │ www.fresenius.com/investors
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: A Global Leader In HealthCare Products And Services
A Global Leader In HealthCare Products And Services ~€29.1 bn in Sales Long-term opportunities €2.7 bn net income1 in growing, non-cyclical (as of Dec. 31, 2016) Leading market positions markets Global presence in Diversified revenue base with Strong financial performance 100+ countries four strong
Slide 4: Strong and Balanced Health Care Portfolio
Strong and Balanced Health Care Portfolio Ownership: ~31% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Hospital Supplies Hospital Operations Hospital Projects Healthcare Services and Services • Hemodialysis products • IV drugs • Acute care and • Project development • Peritoneal d
Slide 5: Global Sales Base in Growing, Non-Cyclical Markets
Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2016 Sales by Region 2016 Sales in € bn 29,1 27,6 Latin America Africa 4% 1% 10% 23,2 Asia-Pacific 20,3 19,3 10% CAGR 16,0 16,4 €29.1 bn 14,2 North America 12,3 11,4 47% 10,8 Europe 38% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Al
Slide 6: Strong Track Record of Organic Sales Growth in All Business Segments
Fresenius Group: Strong Track Record of Organic Sales Growth in All Business Segments Fresenius Group Business Segments 5% CAGR 12% 9% 9% 8% 8% 8% 8% 7% 7% 6% 6% 6% 6% 6% 5% 5% 5% 5% 5% 4% 4% 4% 4% 2% '09 '10 '11 '12 '13 '14 '15 '16 '09 '10 '11 '12 '13 '14 '15 '16 '09 '10 '11 '12 '13 '14 '15 '16 15%
Slide 7: Strong Track Record of EBITDA Generation
Fresenius Group: Strong Track Record of EBITDA Generation 2016 EBITDA by Business Segment 2016 EBITDA in € bn 5.5 5.1 16% 1% 12% 4.1 CAGR 3.9 3.9 €5.5 bn 3.1 3.2 2.6 2.3 56% 27% '08 '09 '10 '11 '12 '13 '14 '15 '16 All data according to U.S. GAAP General Credit Presentation, May 2017, © Fresenius SE
Slide 8: Fresenius SE: Earnings-Linked Dividend Policy
Fresenius SE: Earnings-Linked Dividend Policy 2016 Pay-out Ratio: 22% Dividend Policy 0.621 0.55 • Dividend growth aligned to EPS 2 growth 0.44 • Pay-out Ratio: 20% to 25% 0.42 Pay-out Ratio 0.37 0.32 0.29 € per share 0.25 0.23 0.22 Dividend 0.19 distribution 27% 25% 25% 24% (€m) 21% 21% 21% 22% 21%
Slide 9: Global Healthcare Trends – Strong Growth Fundamentals
Global Healthcare Trends – Strong Growth Fundamentals World population age 60+ 60+ will reach >2 bn by 20501 Increasing health expenditure per capita (2014 vs. 1999 - USA US$9,403 (+108%), China: US$420 (+977%), India: US$75 (+317%)2 By 2022, one third of all global health 1/3 expenditure will occur
Slide 10: Fresenius Medical Care: Global Dialysis Market Leader
Fresenius Medical Care: Global Dialysis Market Leader • The world’s leading provider of dialysis products Market Dynamics and services treating 310,473 patients in 3,654 clinics1 Global Dialysis Market 2016: • Provide highest standard of product quality and • ~US$76 bn • ~6% patient growth p.a. pati
Slide 11: Fresenius Medical Care: Strong Track Record of Growth
Fresenius Medical Care: Strong Track Record of Growth Sales in US$ million EBIT in US$ million CAGR CAGR 7% 3% 17,911 2,638 16,738 15,832 14,610 13,800 2,329 2,327 2,256 2,255 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 All data according to U.S. GAAP General Credit Presentation, May 2017, © Fresenius S
Slide 12: Fresenius Kabi: A Leading Global Hospital Supplier
Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for critically and Market Dynamics chronically ill patients • Strong Emerging Markets presence Global Addressable Market 2016: • >€48 bn • Leading market positions in four product segments Growth Drivers: • Patent e
Slide 13: Fresenius Kabi: Impressive Growth
Fresenius Kabi: Impressive Growth Sales in € million EBIT in € million CAGR CAGR 7% 7% 5,950 6,007 1,189 1,224 4,996 5,146 4,539 934 926 873 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 All data according to U.S. GAAP General Credit Presentation, May 2017, © Fresenius SE & Co. KGaA Investor Relations 13
Slide 14: Fresenius Helios: Europe's largest private hospital operator (Germany)
Fresenius Helios: Europe’s largest private hospital operator Helios Kliniken Germany • ~6% share in German acute care hospital Market Dynamics market • Solid organic growth based on growing number German Acute Care Hospital Market: of admissions and reimbursement rate increases • ~€94 bn1 • Strong t
Slide 15: Fresenius Helios: Quirónsalud Spain
Fresenius Helios: Europe’s largest private hospital operator Quirónsalud Spain • ~€2.5bn sales in 2016 Market Dynamics • ~10% share in Spanish private hospital market Spanish Private Hospital Market: • Market leader in size and quality with excellent • ~€13 bn1 growth prospects Growth Drivers: • Bro
Slide 16: Fresenius Helios: Excellent Sales And EBIT Development
Fresenius Helios: Excellent Sales And EBIT Development1 Sales in € million EBIT in € million CAGR V CAGR 16% 21% 682 5,843 640 5,578 5,244 553 3,393 390 3,200 322 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 All data according to U.S. GAAP 1 Excluding Quirónsalud General Credit Presentation, May 2017, ©
Slide 17: Fresenius Vamed: Leading Global Hospital Projects And Services Specialist
Fresenius Vamed: Leading Global Hospital Projects And Services Specialist • Manages hospital construction/expansion Market Dynamics projects (51% of sales) and provides services (49% of sales) for health care facilities worldwide Growth Drivers: • Emerging Market demand for building and Projects dev
Slide 18: Fresenius Vamed: Steady Sales And EBIT Growth
Fresenius Vamed: Steady Sales And EBIT Growth Sales in € million EBIT in € million CAGR CAGR 8% 8% 69 64 1,160 1,118 59 1,020 1,042 55 51 846 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 All data according to U.S. GAAP General Credit Presentation, May 2017, © Fresenius SE & Co. KGaA Investor Relations 18
Slide 19: Fresenius Group: Key Figures
Fresenius Group: Key Figures €m 2016 2015 Change Change actual rates constant rates Sales 29,083 27,626 5%1 6% EBITDA2 5,500 5,073 8% 9% EBIT2 4,327 3,958 9% 10% Interest, net -582 -613 5% 5% EBT2 3,745 3,345 12% 13% Taxes2 -1,051 -983 -7% -8% Net income2,3 2,694 2,362 14% 15% Employees4 232,873 222
Slide 20: Cash Flow Development by Business Segment
Cash Flow Development by Business Segment Operating CF Capex (net) Free Cash Flow1 €m 2016 Margin 2016 Margin 2016 Margin 991 16.5% -323 -5.4% 668 11.1% 622 10.6% -349 -5.9% 273 4.7%3 27 2.3% -11 -0.9% 16 1.4% Corporate/Other 1 n.a. -6 n.a. -5 n.a. 1,7172 13.3%2 -689 -5.4% 1,0282 7.9%2 Excl. FMC 1,9
Slide 21: Fresenius Group: Consistent Cash Generation
Fresenius Group: Consistent Cash Generation CFFO margin FCF margin (before acquisitions & dividends) % % 14 10 13 12.6 12.0 12.0 12.3 7.4 7.7 8 12 11.4 11.4 6.3 6.8 6.8 11.0 6.3 11 10.3 5.6 5.7 6 5.4 11.1 9.8 4.5 10 8.7 4 2.7 9 8 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 200
Slide 22: Proven Track Record of Deleveraging Following Acquisitions
Fresenius Group: Proven Track Record of Deleveraging Following Acquisitions Net Debt/EBITDA1 Acquisition of Renal Acquisition of APP 4.0 Care Group Pharmaceuticals Acquisition of hospitals 3.8 from Rhoen-Klinikum 3.6x 3.6 3.5x Acquisition of Leverage 3.4x 3.4 Quirónsalud target 3.2x 3.2 2017 6 3.0x
Slide 23: Fresenius Group: Capitalization – March 31, 2017
Fresenius Group: Capitalization – March 31, 2017 % of Instrument per Book Value in € million in $ million3 EBITDA LTM x total cap 4 FSE 2013 Credit Agreement: Revolver (€, US-$) 300 321 0.4% FSE 2013 Credit Agreement: Term Loan A (€, US-$) 2,409 2,575 3.0% Senior Notes (€, US-$) 5,300 5,666 6.7% Con
Slide 24: Broad Mix of Financing Instruments
Fresenius Group: Broad Mix of Financing Instruments Well Positioned to Meet Financing Needs Other financial liabilities 10% • Optimize funding costs and ensure Equity-neutral financial flexibility convertible bonds 6% • Diversify investor base Schuldschein Total B/S Debt1: • Strong liquidity provide
Slide 25: Well-Balanced Maturity Profile
Fresenius Group: Well-Balanced Maturity Profile1 Fresenius Group Fresenius Group ex Fresenius Medical Care Maturity Maturity €m 3.8 years €m 4.6 years 2.800 3.000 2.800 on average 2.600 on average 2.600 2.400 1,938 2.400 2.200 2.200 2.000 2.000 1.800 500 1.800 1.600 422 1.600 1.400 500 1.400 1.200 1
Slide 26: Solid Balance Sheet Structure
Fresenius Group: Solid Balance Sheet Structure B/S total (€bn) Healthy Equity and Liability Split 30.6 32.7 39.8 43.0 46.4 • Strong equity ratio of ~40% on average • Equity ratio kept in narrow range despite 42% 41% 39% 42% 44% rapid growth of Fresenius Group 36% 39% 39% 34% 32% 22% 20% 22% 24% 24%
Slide 27: Strong Access to Capital Markets
Fresenius Group: Strong Access to Capital Markets Major Financing Instruments 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20171 Senior Notes $500 m €425 m €250 m €800 m €750 m €500 m €1.2 bn $300 m €2.6 bn $500 m $1.05 bn $1.5 bn $1.2 bn Syndicated $3.05 bn $3.5 bn $898 m $3.85 bn $1.8 bn $4.1
Slide 28: Fresenius SE: Current Credit Ratings
Fresenius SE: Current Credit Ratings S&P Moody‘s Fitch Corporate Credit Rating BBB- Baa3 BBB- Outlook stable stable stable Short-Term Debt A-3 - F3 Secured Debt Rating BBB- Baa3 BBB- Unsecured Debt Rating BB+ Baa3 BBB- General Credit Presentation, May 2017, © Fresenius SE & Co. KGaA Investor Relatio
Slide 29: 2017 Financial Outlook by Business Segment
Fresenius Group: 2017 Financial Outlook by Business Segment1 €m except otherwise 2016 2017e Q1/2017 2017e stated Base Previous Actual New Sales growth (cc) 16,750 8% – 10%5 12% Net income (cc) 1,144 7% – 9%5 41% Sales growth (org) 6,007 5% – 7% 7% EBIT growth (cc) 1,171 5% – 7% 2% 6% – 8%6 Sales gro
Slide 30: 2017 Financial Guidance
Fresenius Group: 2017 Financial Guidance1 €m except 2016 2017e Q1/2017 2017e otherwise stated Base Previous Actual New Sales 29,471 15% – 17% 17% growth (cc) Net income2 1,560 17% – 20% 26% 19% – 21%3 growth (cc) Net debt / Bottom half 2.33x 2.98x 3.3x5 EBITDA4 of 2.5x-3.0x 1 All data according to I
Slide 31: Ambitious Mid-Term Targets
Fresenius Group: Ambitious Mid-Term Targets Sales Net Income €bn €m Mid-point Mid-point CAGR CAGR 8.7%3 10.5%3 47 2,700 43 ~35.01 2,400 ~1,8902 29.5 1,560 2016 2017 2020 2016 2017 2020 1 Mid-point of the February 2017 sales guidance, adjusted for current exchange rates 2 Mid-point of the February 20
Slide 32: Credit Highlights
Fresenius Group: Credit Highlights Consistent Cash Generation Well-Balanced Maturity Profile Proven Track Record of Solid Balance Sheet Deleveraging Following Structure Acquisitions Broad Mix of Financing Strong Access to Instruments Capital Markets General Credit Presentation, May 2017, © Fresenius
Slide 33: Attachments
Attachments General Credit Presentation, May 2017, © Fresenius SE & Co. KGaA Investor Relations 33
Slide 34: Fresenius Group: Key Figures
Fresenius Group: Key Figures 2016 2015 2014 Debt1 (€m) 14,780 14,769 15,354 thereof US$ denominated 52% 52% 48% Net debt1 (€m) 13,201 13,725 14,170 Net debt/EBITDA1,2,4 2.40 2.71 3.39 Net debt at year-end exchange rate; EBITDA at LTM average FX rates Net debt/EBITDA1,2,5 2.34 2.68 3.24 at LTM averag
Slide 35: Fresenius Group: Debt and Cash Flow Structure
Fresenius Group: Debt and Cash Flow Structure 1 Fresenius Fresenius SE • Separate financing of Medical Care Financing Fresenius SE and Financing Fresenius Medical Care Group Net Debt: €18,730 m • No joint financing facilities or mutual guarantees FSE Net Debt2: FSE Net Debt: • Fresenius SE‘s net deb
Slide 36: Fresenius Group: Cash Flow
Fresenius Group: Cash Flow €m 2016 Margin 2015 Margin ∆ YoY Operating Cash Flow 3,574 12.3% 3,327 12.0% 7% Capex (net) -1,603 -5.5% -1,462 -5.2% -10% Free Cash Flow 1,971 6.8% 1,865 6.8% 6% (before acquisitions and dividends) Acquisitions (net) -485 -32 -- Dividends -738 -639 -15% Free Cash Flow 748
Slide 37: Financial Results by Business Segment
Fresenius Group: Financial Results by Business Segment 2016 2015 2014 Growth 2015/2016 Sales US$17,911 m US$16,738 m US$15,832 m 7% EBIT US$2,638 m US$2,327 m US$2,255 m 13% Sales €6,007m €5,950 m €5,146 m 1% EBIT1 €1,224 m €1,189 m €873 m 3% Sales €5,843 m €5,578 m €5,244 m 5% EBIT1 €682 m €640 m €
Slide 38: Margins by Business Segment
Fresenius Group: Margins by Business Segment 2016 2015 2014 EBITDA margin 19.1% 18.2% 18.7% EBIT margin 14.7% 13.9% 14.2% EBITDA margin1 24.6% 24.3% 21.1% EBIT margin1 20.4% 20.0% 17.0% EBITDA margin1 15.0% 14.9% 14.0% EBIT margin1 11.7% 11.5% 10.5% EBITDA margin 6.9% 6.7% 6.8% EBIT margin 5.9% 5.7%
Slide 39: Fresenius SE: Rating History & Rationale
Fresenius SE: Rating History & Rationale Rating History Key Statements from Rating Agencies “FSE's main divisions have developed very stab stab favorably through a mix of organic and inorganic BBB-/ Baa3/ neg neg growth over the past decade, and they have pos pos reached critical size.” BB+/ stab st
Slide 40: Fresenius SE & Co. KGaA: Overview Senior Notes
Fresenius SE & Co. KGaA: Overview Senior Notes Issuer Instrument Volume Coupon Coupon Maturity/ ISIN WKN (in millions) type (in %) Term (RegS) Fresenius SE & Co. KGaA Senior Notes €500 Fix 4.25 2012/2019 XS0759200321 A1G2YM Fresenius SE & Co. KGaA Senior Notes €300 Fix 2.375 2014/2019 XS1013954646 A
Slide 41: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar 2017 03.05.2017 Report on 1st quarter 2017 12.05.2017 Annual General Meeting, Frankfurt/Main 01.08.2017 Report on 2nd quarter 2017 02.11.2017 Report on 3rd quarter 2017 Please note that these dates could be subject to change. Contact Investor Relations
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