Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Q2 2024 Earnings Presentation
42 slides from Fresenius Se & Co. Kgaa's earnings presentation, Jul 31, 2024
Slide 1: #FutureFresenius: Focused – Stronger – Simpler
#FutureFresenius: Focused – Stronger – Simpler Fresenius with excellent financial progression in Q2/24; Outlook confirmed - optimistic about H2/24 Bad Homburg, 31 July 2024
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
01 01 Business update Financial review Q2/24 02 Business update #FutureFresenius 03 Attachments 04
Slide 4: Simpler and focused Fresenius Kabi Fresenius Helios
Simpler and focused Fresenius Kabi Fresenius Helios Pharma Biopharma Nutrition MedTech (Bio)Pharma platform MedTech platform Care provision platform Q2/24 Results, 31 July 2024 © Fresenius SE & Co. KGaA Investor Relations 4
Slide 5: Committed to Life
Committed to Life Employing and developing 40,000 nurses Q2/24 Results, 31 July 2024 © Fresenius SE & Co. KGaA Investor Relations 5
Slide 6: Q2/24 Delivering consistent strong growth
Q2/24 Delivering consistent strong growth Excellent Q2/24: High single-digit revenue and double-digit EBIT growth Strong cash flow: Within leverage target corridor in Q2/24 Biopharma accelerating momentum: Positive EBIT in Q2/24 Structural productivity savings ahead of plan Strong bottom-line delive
Slide 7: Excellent Q2/24: Kabi and Helios showing strong performance
Excellent Q2/24 Kabi and Helios showing strong performance FY/24 FY/24 Outlook Outlook upgraded Fresenius Helios upgraded Q1/24 at CMD 14–17% 10–12% EBIT € 334m 15.9% € 357 m 11.1% (Margin) 4–7% 4–6% Revenue (Org. € 2.1bn +11%1 € 3.2 bn +6% Growth) • Growth Vectors in structural margin band with • E
Slide 8: Kabi: Growth Vectors driving performance
Kabi: Growth Vectors driving performance Recent Highlights 3 1 Biopharma MedTech Nutrition Pharma Revenue yoy Revenue yoy Revenue yoy Revenue yoy +102% +9% +14% +2% • FDA and EMA Acceptance for • Completed clinical study of • Approval for 3rd FSMP product • Start of production for Review of Denosuma
Slide 9: Fresenius Kabi securing critical drug supplies globally
Fresenius Kabi securing critical drug supplies globally Largest IV Generics Portfolio in the market Distinct market Leader for IV Fluids # of products in portfolio EU Infusion Solutions Market Volume Share distribution ~170 Others #2 #3 #4 #5 #3 #6 #7 #8 #2 Continuously adding new products EU Irriga
Slide 10: Attractive biosimilar portfolio and pipeline
Attractive biosimilar portfolio and pipeline focused on oncology and autoimmune diseases Candidate & TA Pre-clinical Clinical trials Approval Launch Adalimumab EU: Apr 2019 / US: Dec 2022 EU: May 2019 / US: Jul 2023 Autoimmune Pegfilgrastim FRESENIUS KABI EU: Mar 2022 / US: Sep 2022 EU PFS: Oct 2022
Slide 11: Capital Markets Day key take-aways
Capital Markets Day key take-aways Well positioned for capital-efficient revenue and earnings growth System critical care provision platform Outstanding capabilities Market-leading Network Superior Medical quality Consistent growth performance Ambitions raised Consistent Growth Q2/24 Results, 31 Jul
Slide 12: Helios delivering consistent organic growth
Helios delivering consistent organic growth Q2/24 Highlights Helios Germany Helios Spain Revenue (org.) yoy Revenue (org.) yoy +3% +11% • Ongoing focus on top value drivers clustering and • Consistent patient access to newest front-edge specialization, outpatient integration, and emergency technolog
Slide 13: Dynamic financial progression as transformation gains momentum
Dynamic financial progression as transformation gains momentum FY/20 FY/21 FY/22 FY/23 H1/24 EPS1 EPS growth back to solid yoy positive growth trajectory -3% +5% -13% -15% +10%2 1 Before special items; at constant currency 2 Growth rates adjusted for Argentina hyperinflation Q2/24 Results, 31 July 2
Slide 14: Financial review Q2/24
01 02 Business update Financial review Q2/24 02 Financial review Q2/24 #FutureFresenius 03 Attachments 04
Slide 15: Q2/24 Excellent financial performance
Q2/24 Excellent financial performance Strong revenue growth underpinning continued momentum €5.4bn €660m €388m Excellent EBIT growth of 15%2 reflects the strong performance of Kabi and Helios +8% org.1 +15%2 +15%2 EPS increased by 15% demonstrating bottom-line delivery Revenue EBIT Net income excl.
Slide 16: Fresenius Kabi: Growth Vectors accelerate, fueling performance
Fresenius Kabi Growth Vectors accelerate, fueling performance Quarterly financials Main developments 2,200 Excellent organic revenue growth of 11 %1 above top-end of structural growth band, helped by pricing effects in Argentina 15.9% 2,100 15.1% Growth Vectors with very strong 19 %1 organic 14.2% 1
Slide 17: Fresenius Helios: Strong financial performance driven by Helios Spain
Fresenius Helios Strong financial performance driven by Helios Spain Quarterly financials Main developments 3,300 Strong organic revenue growth at top-end of 3,200 structural growth band, helped by Easter effect in 11.5% 11.0% 11.1% Spain (11% organic growth); Solid 3% organic 10.0% EBIT revenue gro
Slide 18: Cost and productivity savings ahead of plan
Cost and productivity savings ahead of plan Cost savings ~ 400 EBIT view, cumulated €m Over-delivered in H1/24: 336 350 • Savings driven by complexity 330 reductions, supply chain 282 optimization and procurement improvements • Majority realized by Kabi 158 Ambition to achieve 2025 savings target of
Slide 19: Excellent operating cash flow development in Q2/24
Excellent operating cash flow development in Q2/24 €m Q2/24 Q2/23 Q1/24 Q2/24 LTM OCF significantly improved; both yoy and sequentially OCF 709 148 -28 2,559 Kabi: strong OCF development thereof Kabi 259 180 157 1,230 driven by improved Working Capital thereof Helios 604 61 -117 1,562 Helios: Strong
Slide 20: Deleveraging continues: Entering leverage ratio target corridor
Deleveraging continues: Entering leverage ratio target corridor Robust operational execution and performance Structural productivity improvements Disciplined and stringent capital allocation Greater cash focus across the Group Further Energy relief related dividend suspension for FY/23 deleveraging
Slide 21: Outlook for FY/24 confirmed
Outlook for FY/24 confirmed: Optimistic to get into upper half of EBIT growth range FY/23 base1 FY/24 outlook €8,009m Mid to high single-digit organic revenue growth Revenue growth (organic): Fresenius 4–7% growth Kabi €1,145m Between 15–16% EBIT margin; 2023: €20,307m1 structural EBIT margin band o
Slide 22: #FutureFresenius
01 03 Business update Financial review Q2/24 02 #FutureFresenius #FutureFresenius 03 Attachments 04
Slide 23: Delivering on our promises and driving change
#FutureFresenius Delivering on our promises and driving change 2024 – Strong performance, improved growth momentum Net Debt/EBITDA at 3.43 in Q2/24; entering target range Drive down leverage 3.0 to 3.5x; further improvement expected until year-end Already ~€68m incremental cost savings of expect
Slide 24: #FutureFresenius: Reset, Revitalize, Rejuvenate, Reimagine
#FutureFresenius REIMAGINE REJUVENATE Shape the future of healthcare REVITALIZE Pursue platform-driven growth opportunities Optimize portfolio & RESET refine operating model Focus + Simplification + Performance = VALUE Q2/24 Results, 31 July 2024 © Fresenius SE & Co. KGaA Investor Relations 24
Slide 25: Attachments
01 04 Business update Financial review Q2/24 02 Attachments #FutureFresenius 03 Attachments 04
Slide 26: Guidance base
Guidance base Portfolio Base for FY/2023 Vamed €m Adjustments Guidance Actual Exit Helios 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 -2,356 0 EBIT -16 +16 0 Revenue -386 +732 346 Corporate EBIT -99 +30 -69 Revenue 22,299 -368 -1,624 20,30
Slide 27: FY/24 Fresenius Group Other financial KPIs
FY/24 Fresenius Group Other financial KPIs €m FY/23 FY/24 expectation Interest expense €418m €420 to €440m Profitability Tax rate 28.3% Between 25 to 26% CAPEX % of revenue 5.1% Around 5% Capital CCR LTM 1.0 Around 1 Allocation ROIC 5.2% Around 6% (previous: in the range of 5.4 to 6.0%) Leverage rat
Slide 28: Financial & accounting implications of Vamed exit I
FY/24 Fresenius Group Financial & accounting implications of Vamed exit I STRUCTURE REHABILITATION 67% to be divested, 33% to remain with FSE DIVESTED HFO1 | ~40%2 of revenue Closing expected in H2/24 Discontinued operations reported as special items Closing expected in H2/24 AUSTRIA OPERATI
Slide 29: Financial & accounting implications of Vamed exit II
FY/24 Fresenius Group Financial & accounting implications of Vamed exit II PROFIT & LOSS CASH FLOW REHABILITATION Special items of €427 million as per Q2/24 DIVESTED HFO1 | ~40%2 of revenue No cash impact Divested Rehabilitation stake (67%) to be reported as discontinued operations until closi
Slide 30: Fresenius Kabi Organic Revenue Growth by Product Group
Q2/24 & H1/24 Fresenius Kabi Organic Revenue Growth by Product Group Δ YoY Δ YoY €m Q2/24 organic2 H1/24 organic2 MedTech 389 9% 761 5% Nutrition 610 14% 1,189 11% Biopharma 150 102% 289 109% Growth Vectors1 1,149 19% 2,239 16% Pharma 951 2% 1,913 3% (IV Drugs & Fluids) Corporate 0 -- 0 -- Total rev
Slide 31: Fresenius Kabi EBIT(DA) development
Q2/24 & H1/24 Fresenius Kabi EBIT(DA) development €m Q2/24 Δ YoY cc2 H1/24 Δ YoY cc2 Total EBITDA 472 18% 912 14% Margin 22.5% +250 bps 22.0% +190 bps Total EBIT 334 17% 644 12% Margin 15.9% +170 bps 15.5% +110 bps Growth Vectors1 169 47% 293 31% Margin 14.7% +640 bps 13.1% +440 bps Pharma 185 -11%
Slide 32: Fresenius Helios Key Financials
Q2/24 & H1/24 Fresenius Helios Key Financials €m Q2/24 Δ YoY cc H1/24 Δ YoY cc Total revenue 3,230 6%1 6,384 6%1 Thereof Helios Germany 1,882 3%1 3,785 4%1 Thereof Helios Spain 1,348 11%1 2,599 9%1 Total EBIT 357 18% 705 16% Margin 11.1% +110 bps 11.0% +90 bps Thereof Helios Germany 157 2% 362 17% M
Slide 33: Fresenius Helios: Key Metrics
Fresenius Helios: Key Metrics H1/24 FY/23 ΔYoY Helios Germany Hospitals 85 86 -1% - Acute care hospitals 82 83 -1% Beds 29,955 29,976 0% - Acute care hospitals 29,389 29,410 0% Admissions 2,702,597 5,470,871 -3% - patients treated in hospital 583,876 1,136,446 3% - patients treated as outpatient 2,1
Slide 34: Calculation of Noncontrolling Interests
H1/24 Fresenius Group Calculation of Noncontrolling Interests €m H1/24 H1/23 Earnings before tax and noncontrolling interests 1,071 966 Taxes -271 -231 Noncontrolling interests, thereof -41 -33 Fresenius Kabi -35 -28 Fresenius Helios -6 -4 Corporate 0 -1 Net income from deconsolidated operations 129
Slide 35: Fresenius Group Cash Flow
Q2/24 & Q2/24 LTM Fresenius Group Cash Flow Q2/24 LTM Q2 €m Q2/24 LTM Margin Δ YoY Operating Cash Flow 709 2,559 12.3% -- Capex (net) -147 -968 -4.6% 31% Free Cash Flow 562 1,591 7.7% -- (before acquisitions, dividends, and lease liabilities) Acquisitions (net) 27 -18 Dividends 112 106 Lease liabili
Slide 36: Reconciliation adjusted Free Cash Flow for CCR
Q2/24 & H1/24 Fresenius Group Reconciliation adjusted Free Cash Flow for CCR €m Q2/24 Q2/23 H1/24 H1/23 Operating Cash Flow 709 148 681 199 Capex (net) -147 -214 -337 -395 Free Cash Flow 562 -66 344 -196 (before acquisitions, dividends, and lease liabilities) Special items +2 +28 +31 +51 (net income
Slide 37: Q2/24 Cash Flow development
Q2/24 Cash Flow development Operating Cash Flow Capex (net)1 Free Cash Flow2 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 €m Margin Margin % sales % sales Margin Margin 259 180 12.3% 9.0 -67 -83 -3.2% -4.2% 192 97 9.1% 4.8% 604 61 18.7% 2.0% -74 -125 -2.3% -4.1% 530 -64 16
Slide 38: Q2/24 LTM Cash Flow development
Q2/24 LTM Cash Flow development Operating Cash Flow Capex (net)1 Free Cash Flow2 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 Q2/24 Q2/23 €m LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM Margin Margin % sales % sales Margin Margin 1,230 800 15.1% 9.9% -409 -480 -5.0% -5.9% 821 320 1
Slide 39: Q2/24 Revenue by Business Segment – FX, Acquisitions/Divestitures
Q2/24 Revenue by Business Segment – FX, Acquisitions/Divestitures Growth at Currency Growth at actual translation constant Organic Acquisi- Divestiture/ €m Q2/24 Q2/23 rates effects rates growth1 tions Others Fresenius 2,101 2,001 5% -5% 10% 11% 0% -1% Kabi Fresenius 3,230 3,020 7% 1% 6% 6% 0% 0% He
Slide 40: H1/24 Revenue by Business Segment – FX, Acquisitions/Divestitures
H1/24 Revenue by Business Segment – FX, Acquisitions/Divestitures Growth at Currency Growth at actual translation constant Organic Acquisi- Divestiture/ €m H1/24 H1/23 rates effects rates growth1 tions Others Fresenius 4,152 3,992 4% -5% 9% 10% 0% -1% Kabi Fresenius 6,384 5,997 6% 0% 6% 6% 0% 0% Hel
Slide 41: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar Social Media 06 Nov 2024 Results Q3/24 Follow Fresenius Investor Relations on LinkedIn: Events 03 Sep 2024 Commerzbank & ODDO BHF Corporate Conference, Frankfurt 18 Sep 2024 BofA Global Healthcare Conference, London 23 Sep 2024 Baader Investment Confer
Slide 42: #FutureFresenius
= Fresenius #FutureFresenius June 2024