Fresenius Se & Co. Kgaa · XETR:FRE

Fresenius Se & Co. Kgaa — FY2023 Earnings Presentation

49 slides from Fresenius Se & Co. Kgaa's earnings presentation, Feb 21, 2024

  1. Slide 1: #FutureFresenius – Consistent delivery and accelerating performance

    #FutureFresenius – Consistent delivery and accelerating performance Bad Homburg, 21 February 2024

  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

    1 Performance in FY/23 2 Financial update & Outlook FY/24 3 #FutureFresenius: Re-VITALIZE

  4. Slide 4: FY/23: Simplification + Focus = Consistent performance

    FY/23: Simplification + Focus = Consistent performance REVENUE EBIT €22.3 bn €2,262 m +6% +2% Guidance: Guidance: Mid-single-digit Broadly flat growth development Organic revenue growth; EBIT growth in constant currency (cc) Before special items FY/23 Results, 21 February 2024 © Fresenius SE & Co. K

  5. Slide 5: Consistently strong performance at Kabi and Helios

    Consistently strong performance at Kabi and Helios OPERATING COMPANIES Q1 YTD Q2 YTD Q3 YTD FY/23 REVENUE ORG. +7%1 +7%1 +7%1 +7%1 EBIT -4% +1% +2% +3% REVENUE ORG. +5% +6% +6% +5% EBIT +2% +3% +4% +4% Within or above structural growth/margin band according to Fresenius Financial Framework INVESTMEN

  6. Slide 6: #FutureFresenius: Accelerating performance in 2024

    #FutureFresenius: Accelerating performance in 2024 2023 2024 Operating Company focus Accelerated earnings growth OpCo consistent strong performance Cost programs extended Costs out Debt reduction a priority Structures simplified Stronger management team Invigorated innovation Over-delivered Re-VITAL

  7. Slide 7: Group Outlook FY/24: Accelerating performance

    Group Outlook FY/24: Accelerating performance Revenue (org.) 3 – 6% GROWTH Earnings per Share EBIT (cc) 4 – 8% GROWTH Re-VITALIZE FY/23 Results, 21 February 2024 © Fresenius SE & Co. KGaA Investor Relations 7

  8. Slide 8: Fresenius Kabi's product successes continue

    Advancing patient care: Fresenius Kabi’s product successes continue Broaden Expand Biopharma MedTech • Tyenne launched in first • Fresenius Kabi signs countries in Europe agreement with Mayo to deliver 10,000 Ivenix • mAbxience and Intas enter large-volume infusion strategic partnership to pumps tar

  9. Slide 9: Fresenius Helios leader in quality and innovation

    Advancing patient care: Fresenius Helios leader in quality and innovation Strong market State-of-the-art reputation medical Five Quirónsalud centers in technology the 'top 10' private Quirónsalud brings hospitals with the best innovation to patients with reputation in Spain (Monitor Spain's first tw

  10. Slide 10: Strong execution - targeting accelerated growth in FY/24

    Strong execution - targeting accelerated growth in FY/24 OpCo organic revenue growth (%) OpCo EBIT growth1 (%) Consistent execution: 6 Delivering results 5 4 2022 2023 2022 2023 -7 Focus on Operating Companies as a platform for CCR even stronger results Operating Cashflow2 (change yoy %) 1.0 Ongoing

  11. Slide 11: Financial update & Outlook FY/24

    1 Performance in FY/23 2 Financial update & Outlook FY/24 3 #FutureFresenius: Re-VITALIZE

  12. Slide 12: FY/23: Created a strong performance platform

    FY/23: Created a strong performance platform Fresenius Financial Framework 2023 Actuals Focus in 2023 AMBITION LEVEL Operating Companies Investment Companies FSE expectation as major shareholder Increase focus 1 and transparency EBIT margin 14.3% 10.0% -0.7% 8.9% AMBITION LEVEL (14-17%) (9–11%) (4–6

  13. Slide 13: Q4/23: Strong finish to the year

    Q4/23: Strong finish to the year  Solid revenue growth driven by strong performance of Operating Companies €5.7bn €634m +5% OG +8%  EBIT growth reflects strong quarter for Kabi and Helios as well as Vamed’s ongoing operational REVENUE EBIT improvement  Higher interest expense at -€118m (Q4/22: -€

  14. Slide 14: Fresenius Kabi: Growth vectors pace performance

    Fresenius Kabi: Growth vectors pace performance QUARTERLY FINANCIALS MAIN DEVELOPMENTS 2,050  Excellent organic revenue growth of 2,036 7%1 yet again at top-end of structural growth band 2,000 1,996 Revenue €m  Growth Vectors fueling top-line with 14.5% 14.2% 14.3% 14.1% excellent 11%1 organic rev

  15. Slide 15: Fresenius Helios: Strong finish to the year

    Fresenius Helios: Strong finish to the year QUARTERLY FINANCIALS MAIN DEVELOPMENTS 3,200  Organic revenue growth at top-end of 11.6% 3,100 11.7% EBIT structural growth band, driven by Margin healthy activity levels at both Germany 3,000 10.0% (5% organic growth) and Spain (5% organic growth) 2,900

  16. Slide 16: Fresenius Vamed: Turnaround progressing well

    Fresenius Vamed: Turnaround progressing well QUARTERLY FINANCIALS TRANSFORMATION UPDATE 800  Restructuring measures progressing well along clear implementation roadmap 3.5%  Revenue development in Q4/23 impacted EBIT by phasing and more rigorous vetting in 600 Margin 1.5% the Project business; Ser

  17. Slide 17: FMC: Deconsolidation finalized

    FMC: Deconsolidation finalized 2023 2023 and beyond 30 NOVEMBER: REGISTRATION OF 14 JULY: 30 SEPTEMBER: LEGAL FORM IN AT EQUITY EGM Q3 RESULTS COMMERCIAL REGISTER ACCOUNTING  Change of legal form  Subsequent  Deconsolidation finalized  Ongoing at equity accounting under approved by measurement u

  18. Slide 18: Strong operating cash flow in Q4/23

    Strong operating cash flow in Q4/23 €m Q4/23 Q4/22 Q4/23 Q4/22 LTM LTM  Q4 OCF increased by 4% over OCF 1,272 1,225 2,131 2,031 strong prior-year quarter % OCF Margin 22.4% 21.6% 9.6% 9.4%  Kabi: strong OCF develop- ment driven by intense Capex (net) -384 -403 -1,107 -1,089 Working Capital focus C

  19. Slide 19: FY/24: Focus on execution

    FY/24: Focus on execution 1 More cost savings 2 Drive down leverage 3 Rigorous focus on capital efficiency and returns Re-VITALIZE FY/23 Results, 21 February 2024 © Fresenius SE & Co. KGaA Investor Relations 19

  20. Slide 20: Raising FY/25 target: Cost savings upgrade

    1 Raising FY/25 target: Cost savings upgrade EXCEEDING GOALS FY/23 INCREASED TARGET FY/25  FY/23 cost savings exceed target by >40% Cost savings | EBIT ~€400m  Kabi was largest contributor to these cost savings ~€350m  In FY/24, approx. €330-350m €282m (incremental ~€50-70m) of ~€200m cost saving

  21. Slide 21: Improving debt profile a top priority

    2 Improving debt profile a top priority Operational performance Increased cost savings 3.0 TO 3.5X Disciplined and stringent capital allocation LEVERAGE RATIO Greater cash focus across the Group IN FY/24 Energy relief related dividend suspension for FY/23 Proceeds from portfolio optimization FY/23 R

  22. Slide 22: ROIC improvements to drive value creation

    3 ROIC improvements to drive value creation O P E R AT I N G P E R F O R M A N C E I N V E S T E D C A P I TA L Strong underlying growth Targeted and disciplined at Kabi and Helios capital allocation Steady improvement at Vamed Focused investments along strategic growth pillars and portfolio optimiz

  23. Slide 23: Outlook for FY/24: Consistent delivery on higher targets

    Outlook for FY/24: Consistent delivery on higher targets OPERATING COMPANIES FY/23 base1 FY/24 outlook €8,009m Mid-single-digit organic revenue growth Revenue growth €1,145m Around 15% EBIT margin; (organic): structural EBIT margin band of 14–17% 3–6% growth €11,952m Low-to mid-single-digit organic

  24. Slide 24: #FutureFresenius: Re-VITALIZE

    1 Performance in FY/23 2 Financial update & Outlook FY/24 3 #FutureFresenius: Re-VITALIZE

  25. Slide 25: Balancing the driving forces of Advancing Patient Care

    Balancing the driving forces of Advancing Patient Care Multi-faceted Cross-platform health equity therapy development Securing broad access Enabling therapeutic and affordable healthcare integration and optionality Human-to-human AI-powered care clinical decisions Executing end-to-end Supporting eff

  26. Slide 26: Becoming a therapy-focused healthcare company

    #FutureFresenius: Becoming a therapy-focused healthcare company Global value pool1 Specialized Leverage at-scale capabilities and (BIO)PHARMA capacities for leading (bio-) €350-450bn PLATFORM pharmaceutical & nutrition products Targeted Empower cutting-edge medical MEDTECH technology solutions in cr

  27. Slide 27: Unique set-up of mutually reinforcing healthcare platforms

    Unique set-up of mutually reinforcing healthcare platforms 30+ studies in parenteral and Breakthrough technology infusion system enteral nutrition Device supplier for 1/3rd of FDA/EMA-approved 3 multiproduct biologic drug CAR-T cell therapies Multi-faceted substance facilities Health Equity #2 for p

  28. Slide 28: Re-VITALIZE: Kabi 3+1 strategy delivering

    Re-VITALIZE: Kabi 3+1 strategy delivering SELECTED HIGHLIGHTS FOR 2024 AND BEYOND Broaden Expand Roll-out Build Resilience Biopharma on MedTech Nutrition in Pharma • Tyenne launch in attractive • Broad-based volume and • Gradual PN roll-out in USA • New generic molecule launches markets globally pri

  29. Slide 29: Re-VITALIZE: Helios a consistent performer

    Re-VITALIZE: Helios a consistent performer SELECTED HIGHLIGHTS FOR 2024 AND BEYOND Moving ahead from leading positions in Germany and Spain Strong footprints in both markets with clear opportunities for market share expansion Continued best-in-class medical quality levels Efficiency focus in core op

  30. Slide 30: #FutureFresenius

    #FutureFresenius 2022 2023 2024 2025 2026 2027 2030+ REIMAGINE REJUVENATE REVITALIZE RESET Optimize portfolio & Pursue platform-driven Shape the future refine operating model growth opportunities of healthcare Focus + Simplification + Performance = VALUE FY/23 Results, 21 February 2024 © Fresenius S

  31. Slide 31: 2024 the year of Financial Progression

    #FutureFresenius - 2024 the year of Financial Progression 2024 2023 FINANCIAL STRUCTURAL PROGRESSION PROGRESSION Re-VITALIZE FY/23 Results, 21 February 2024 © Fresenius SE & Co. KGaA Investor Relations 31

  32. Slide 32: Attachments

    = FRESENIUS Attachments

  33. Slide 33: Creating #FutureFresenius: Pacing change

    Creating #FutureFresenius: Pacing change 2024 – Continue delivery and foster change momentum Drive down leverage Reach next level of cost savings Kabi: Sustain growth and margin pathway Helios: Focus on capital efficiency, transparency, digitization Deliver Vamed turnaround #FutureFresenius Drive cu

  34. Slide 34: Guidance base

    Guidance base FY/2023 Actual Portfolio Discontinued Base for Adjustments business Guidance €m Helios Vamed1 FY/24 Revenue 8,009 8,009 EBIT 1,145 1,145 Revenue 12,320 -368 11,952 EBIT 1,232 -42 1,190 Revenue 2,356 -155 2,201 EBIT -16 0 -16 Revenue -386 -386 Corporate EBIT -99 -99 Revenue 22,299 -368

  35. Slide 35: FY/24 – Other financial KPIs for Fresenius Group

    FY/24 – Other financial KPIs for Fresenius Group FY/23 FY/24 expectation Profitability Interest €418 m €420 to €440m expense Tax rate 28.3% Between 25 to 26% CAPEX 5.1% Around 5% % of revenue Capital Allocation CCR LTM 1.0 Around 1 ROIC 5.2% In the range of 5.4 to 6.0% Leverage ratio 3.76x Within ta

  36. Slide 36: Fresenius Kabi: Q4 & FY/23 Organic Revenue Growth by Product Group

    Fresenius Kabi: Q4 & FY/23 Organic Revenue Growth by Product Group Δ YoY Δ YoY €m Q4/23 organic FY/23 organic MedTech 397 8% 1,510 8% Nutrition 501 6% 2,304 8% Biopharma 99 66% 363 57% Growth Vectors1 997 11% 4,177 10% Pharma 1,000 3% 3,832 3% (IV Drugs & Fluids) Corporate 0 -- 0 -- Total revenue 1,

  37. Slide 37: Fresenius Kabi: Q4 & FY/23 EBIT(DA) development

    Fresenius Kabi: Q4 & FY/23 EBIT(DA) development €m Q4/23 Δ YoY cc FY/23 Δ YoY cc Total EBITDA 425 0% 1,634 3% Margin 21.3% +150 bps 20.4% +30 bps Growth Vectors1 102 12% 390 +6% Margin 10.2% +430 bps 9.3% +80 bps Pharma (IV Drugs & Fluids) 189 2% 792 6% Margin 18.9% +10 bps 20.7% +70 bps Corporate -

  38. Slide 38: Fresenius Helios: Q4 & FY/23 Key Financials

    Fresenius Helios: Q4 & FY/23 Key Financials €m Q4/23 Δ YoY cc FY/23 Δ YoY cc Total revenue 3,188 5%1 12,320 5%1 Thereof Helios Germany 1,828 5%1 7,279 4%1 Thereof Helios Spain 1,289 5%1 4,770 8%1 Thereof Helios Fertility 71 22%1 269 15%1 Total EBIT 371 5% 1,232 4% Margin 11.6% -10 bps 10.0% -10 bps

  39. Slide 39: Fresenius Helios: Key Metrics

    Fresenius Helios: Key Metrics FY/23 FY/22 Δ Helios Germany Hospitals 86 87 -1% - Acute care hospitals 83 84 -1% Beds 29,976 30,352 -1% - Acute care hospitals 29,410 29,786 -1% Admissions 5,470,871 5,508,158 -1% - patients treated in hospital 1,136,446 1,084,676 5% - patients treated as outpatient 4,

  40. Slide 40: Fresenius Vamed: Q4/23 & FY/23 Key Financials

    Fresenius Vamed: Q4/23 & FY/23 Key Financials €m Q4/23 Δ YoY cc FY/23 Δ YoY cc Total revenue 595 -17% 2,356 0% Thereof continued business 589 2,201 Organic revenue1 -5% 1% Project business 132 -51% 558 -17% Service business 463 4% 1,798 6% Total EBIT2 21 -- -16 -- Order intake3 74 -76% 336 -66% Orde

  41. Slide 41: Fresenius Group: Calculation of Noncontrolling Interests

    Fresenius Group: Calculation of Noncontrolling Interests €m FY/23 FY/22 Earnings before tax and noncontrolling interests 1,844 1,949 Taxes -522 -437 Noncontrolling interests, thereof -60 -78 Fresenius Kabi -54 -56 Fresenius Helios -22 -17 Fresenius Vamed -1 -6 Fresenius Vamed’s 23% external ownershi

  42. Slide 42: Fresenius Group: Cash Flow

    Fresenius Group: Cash Flow €m Q4/23 Q4/23 LTM Q4 LTM Margin Δ YoY Operating Cash Flow – 1,272 2,131 9.6% 4% continuing operations Capex (net) -384 -1,107 -5.0% 5% Free Cash Flow – 888 1,024 4.6% 8% continuing operations (before acquisitions, dividends, and lease liabilities) Acquisitions (net) -12 -

  43. Slide 43: Reconciliation adjusted Free Cash Flow for CCR

    Fresenius Group: Reconciliation adjusted Free Cash Flow for CCR €m Q4/23 FY/23 Operating Cash Flow 1,272 2,131 Capex (net) -384 -1,107 Free Cash Flow 888 1,024 (before acquisitions, dividends, and lease liabilities) Special items (net income before minorities) +167 +253 Interests +118 +418 (before s

  44. Slide 44: Cash Flow development Q4/23

    Cash Flow development Q4/23 Operating Cash Flow Capex (net) Free Cash Flow1 €m Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Margin Margin % sales % sales Margin Margin 434 298 21.7% 14.6% -167 -196 -8.3% -9.6% 267 102 13.4% 5.0% 867 956 27.2% 31.5% -190 -227 -6.0% -7.4% 67

  45. Slide 45: Cash Flow development Q4/23 LTM

    Cash Flow development Q4/23 LTM Operating Cash Flow Capex (net) Free Cash Flow1 €m Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM Margin Margin % sales % sales Margin Margin 1,015 841 12.7% 10.7% -443 -518 -5.6% -6.6% 572 323 7

  46. Slide 46: Revenue by Business Segment – FX, Acquisitions/Divestitures Effects Q4/23

    Revenue by Business Segment – FX, Acquisitions/Divestitures Effects Q4/23 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m Q4/23 Q4/22 rates effects rates growth tions Others Fresenius Kabi 1,996 2,036 -2% -11% 9% 7% 0% 2% Fresenius Helios 3,188 3,031 5% 0

  47. Slide 47: Revenue by Business Segment – FX, Acquisitions/Divestitures Effects FY/23

    Revenue by Business Segment – FX, Acquisitions/Divestitures Effects FY/23 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m FY/23 FY/22 rates effects rates growth tions Others Fresenius Kabi 8,009 7,850 2% -7% 9% 7% 1% 1% Fresenius Helios 12,320 11,716 5% 0

  48. Slide 48: Financial Calendar / Contact

    Financial Calendar / Contact Financial Calendar Social Media 08 May 2024 Results Q1/24 Follow Fresenius Investor Relations on LinkedIn: 17 May 2024 Annual General Meeting 31 July 2024 Results Q2/24 06 November 2024 Results Q3/24 Please note that these dates could be subject to change. Contact For fu

  49. Slide 49: = FRESENIUS

    = FRESENIUS

Fresenius Se & — FY2023 Earnings Presentation on 6ix