Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q3 2023 Earnings Presentation
30 slides from Fresenius Medical Care's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Conference Call
Q3 2023 Conference Call November 2, 2023 Helen Giza, CEO & Chair of the Management Board Martin Fischer, CFO © Copyright
Slide 2: Safe harbor statement
Safe harbor statement: This presentation includes certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncert
Slide 3: Agenda
1 Execution against strategic plan 2 Q3 Business Update Agenda 3 Outlook
Slide 4: Executing on our strategic plan
Executing on our strategic plan Unlock value as the leading kidney care company Global operating model Financial reporting with Structure Simplified governance with two segments enhanced transparency Capital Disciplined financial policy ROIC improvement focus allocation Operational FME25 efficiencie
Slide 5: GLP-1 medications' assumed effects on the kidney disease population
GLP-1 medications’ assumed effects on the kidney disease population ESRD patients with significant co- Overall, GLP-1 medications are morbidity burden expected to have a balanced impact on ESRD patient volumes Expected long-term impact Cardio- Diabetes vascular GLP-1 help control T2D with proven b
Slide 6: 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 Global indicator fo
Slide 7: Agenda
1 Execution against strategic plan 2 Q3 Business Update Agenda 3 Outlook
Slide 8: Q3 2023 | Earnings outlook raised
Q3 2023 | Earnings outlook raised Continued solid organic growth driven by both operating segments, sequentially stable same market treatment growth in the U.S. Successful execution on turnaround plan driving productivity improvements in Care Delivery and pricing in Care Enablement FME25 savin
Slide 9: Q3 2023 | Organic growth momentum continues
Q3 2023 | Organic growth momentum continues Revenue | guidance base1 Operating income | guidance base1 in € million Margin in % 9.3% 7.4% 8.7% 6.6% +7% cc 5.096 4.936 in € million +20%cc +7% organic 472 -2 -93 431 -107 377 324 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Operating Income (guidance base) Special
Slide 10: Q3 2023 | Operating margin further improving
Q3 2023 | Operating margin further improving Margin in % 7.4% 8.7% In € million 472 -95 15 -4 4 431 -107 39 377 324 Q3 2022 Special items Q3 2022 Care Care Inter- Corporate Q3 2023 Special Q3 2023 operating & PRF operating Delivery Enablement segment operating items operating income income income in
Slide 11: Q3 2023 | Key developments in Care Delivery
Q3 2023 | Key developments in Care Delivery Organic revenue growth supported by InterWell Health, reimbursement rate and mix Positive U.S. same market treatment growth when adjusted for exits from less profitable acute care contracts CD International revenue growth driven by hyperinflation whi
Slide 12: Q3 2023 | Care Delivery earnings driven by improved productivity
Q3 2023 | Care Delivery earnings driven by improved productivity Revenue | guidance base1 Operating income | guidance base1 in € million Margin in % 12.1% 9.0% 10.3% 8.4% in € million 500 +17% cc +6% cc 4,131 -93 12 410 -78 3,974 44 +7% organic -36 371 -22 5 813 753 332 Currency Business FME25 Labor
Slide 13: Q3 2023 | Key developments in Care Enablement
Q3 2023 | Key developments in Care Enablement Revenue development driven by negative impact from foreign currency translation higher sales of in-center disposables, machines for chronic treatment and home hemodialysis products positive impact from pricing measures Earnings improved year-ov
Slide 14: Q3 2023 | Care Enablement earnings driven by growth and savings
Q3 2023 | Care Enablement earnings driven by growth and savings Revenue | guidance base1 Operating income | guidance base1 Margin in % in € million -1.9% 0.5% 1.7% -0.1% +217% cc +5% cc in € million 1.376 11 -24 1.330 +5% organic 30 22 -23 33 7 -2 Currency Business FME25 Inflation -1 translation gro
Slide 15: Q3 2023 | Strong cash flow development
Q3 2023 | Strong cash flow development in € million Q3 2023 Q3 2022 Key developments Operating cash flow 760 658 Capital expenditures, net (134) (157) Operating cash flow improved Free cash flow 626 501 mainly due positive working capital contribution resulting Free cash flow after investing a
Slide 16: Agenda
1 Execution against strategic plan 2 Q3 Business Update Agenda 3 Outlook
Slide 17: Outlook | Earnings guidance upgraded
Outlook | Earnings guidance upgraded FY 2023 Revenue [%] Operating income [%] Low- to mid-single digit percentage growth Low-single digit percentage growth Prev.: flat to low-single digit percentage decline FY 2022 basis: EUR 19.4bn FY 2022 basis: EUR 1.54bn Further outlook By 2025 an improved opera
Slide 18: Your questions are welcome.
Your questions are welcome. Q3 2023 © Copyright
Slide 19: Appendix
ad FRESENIUS vy MEDICAL CARE Appendix Q3 2023
Slide 20: Q3 2023 | Profit and Loss
Q3 2023 | Profit and Loss Q3 2023 Q3 2022 Growth Growth € million € million in % in % cc Revenue 4,936 5,096 (3) 7 Operating income 324 472 (31) (28) Operating income margin in % 6.6 9.3 Operating income excl. special items & PRF 431 377 14 20 Operating income margin in % excl. special items & PRF 8
Slide 21: 9M 2023 | Profit and Loss
9M 2023 | Profit and Loss 9M 2023 9M 2022 Growth Growth € million € million in % in % cc Revenue 14,466 14,401 0 5 Operating income 942 1,160 (19) (18) Operating income margin in % 6.5 8.1 Operating income excl. special items & PRF 1,186 1,052 13 14 Operating income margin in % excl. special items &
Slide 22: 2022 base for 2023 targets, reconciliation adjustments
2022 base for 2023 targets, reconciliation adjustments in € million FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue 19,398 4,548 4,757 5,096 4,997 Operating income 1,540 390 284 377 489 Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparis
Slide 23: 2022 base for 2023 targets, reconciliation adjustments
2022 base for 2023 targets, reconciliation adjustments in € million FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue 19,398 4,548 4,757 5,096 4,997 Operating income 1,540 390 284 377 489 Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparis
Slide 24: Debt
Debt Reconciliation of non-IFRS financial measures to most directly comparable IFRS financial measures Q3 2023 FY 2022 FY 2021 € million € million € million Debt Short-term debt from unrelated parties 547 665 1,178 + Short-term debt from related parties 3 4 78 + Current portion of long-term debt 707
Slide 25: EBITDA
EBITDA Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q3 2023 FY 2022 FY 2021 € million € million € million Net income 670 895 1,219 + Income tax expense 297 325 353 − Interest income (86) (68) (73) + Interest expense 4
Slide 26: 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. Long-term value creation based on accretive acquisitions and organic growth 8.6% 7.8% 8.0% adj. 8.0% adj. 2020 negative impact 7.1% from Latin America 6.6%adj. impairment 6.1% rep. 5.1% adj. 2021 negative i
Slide 27: 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 9M 2023 FY 2022 FY 2021 Q1 Q2 Q3 Q4 Full year €:USD Period end 1.059 1.067 1.133 2023 77 78 79 79 313 Average 1.083 1.053 1.183 2022 77 78 79 79 313 2021 77 78 79 79 313 €:CNY Period end 7.735 7
Slide 28: Patients, treatments, clinics
Patients, treatments, clinics as of September 30, 2023 as of September 30, 2022 Patients Treatments Clinics Patients Treatments Clinics United States 205,887 23,380,747 2,617 205,985 23,491,632 2,687 Growth in % 0 0 (3) 0 (3) 1 International 135,906 15,426,432 1,397 138,608 15,660,512 1,466 Growth i
Slide 29: Financial calendar, conferences and roadshows
Financial calendar Date Event February 20, 2024 Report on 4th quarter 2023: Earnings Release and Conference Call Reporting May 7, 2024 Report on 1st quarter 2024: Earnings Release and Conference Call AGM May 16, 2024 Annual General Meeting 2024 & July 30, 2024 Report on 2nd quarter 2024: Earnings Re
Slide 30: Contacts
Contacts FME Investor Relations Dr. Dominik Heger Ilia Kuerten Else-Kröner-Str. 1 Head of Investor Relations, Vice President 61352 Bad Homburg v. d. H. Investor Relations Strategic Development & Germany Communications | EVP Ticker: FME or FMS (NYSE/ADR) +49(0) 6172-609-2525 +49(0) 6172-609-96253 dom
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