Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Investor Presentation (January 2022)
54 slides from Fresenius Se & Co. Kgaa's investor presentation, January 2022
Slide 1: Company Presentation January 2022
Company Presentation January 2022
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: Agenda: Company Overview
Company Overview 02 03 04 Agenda 02 03 04 01 Business Update Financials Q3/21 Attachments Q3/21 & Outlook Company Overview Company Presentation January 2022 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 3
Slide 4: A Global Leader in Health Care Products and Services
Company Overview 02 03 04 A Global Leader in Health Care Products and Services in sales Long-term (FY/2020) opportunities in growing, € 36.3 bn non-cyclical markets Global presence Strong financial in 100+ performance countries and cash flow 100 + generation Leading Employees market worldwide positi
Slide 5: Investment Highlights
Company Overview 02 03 04 Investment Highlights Diversified healthcare Group Leading positions in Resilient business model with four strong business growing non-cyclical based on megatrends segments markets healthcare and demographics Purpose-driven business Strong financial Reliable delivers sustai
Slide 6: Global Trends Offer Growth Opportunities for Fresenius
Company Overview 02 03 04 Global Trends Offer Growth Opportunities for Fresenius Increasing 4x national income Generic GDP per capita quadrupled drugs Growing 313bn over last 20 years in emerging save the US healthcare sector markets and developing healthcare Growth in emerging economies +6.3% marke
Slide 7: The Fresenius Strategy
Company Overview 02 03 04 The Fresenius Strategy Improve profitability Drive Quality Internation- alization Hospital Dialysis supplies & products & Innovation services services Employees Better Hospital projects & medicine and Hospital operations services health care services for ever more people Fo
Slide 8: Strategic Roadmap
Company Overview 02 03 04 Strategic Roadmap 3 Operational excellence Growth drivers Accelerate Capital allocation Strategic evaluation Significant cost savings 2 Launch Idacio in US Growth areas: Biosimilars, Fertility, Grow Digital services, Home-hemodialysis First meaningful cost savings Balance s
Slide 9: Growth Areas
Company Overview 02 03 04 Growth Areas Worldwide growing Growing Markets with Marketing of existing Attractive markets dialysis market High Entry Barriers value chain Strengthening Standardizing Attractive Market and extension medical procedures Product Pipeline consolidation of value chain Home dia
Slide 10: ESG: Setting the Right Priorities in a COVID-19 World
Company Overview 02 03 04 Environment, Social and Governance: Setting the Right Priorities in a COVID-19 World ESG priorities confirmed Ratings and reporting progress Continuous improvement “Better medicine for more people” Rating improvements across the board, Strategy and KPI alignment program to
Slide 11: ESG: Refreshed Materiality Analysis - Core Priorities Confirmed
Company Overview 02 03 04 Environment, Social and Governance: Refreshed Materiality Analysis - Core Priorities Confirmed Well-being of the Digital Transformation Employees patient & Innovation Access to health care Digitalization & Innovation Working conditions, recruitment and medicine & empl
Slide 12: ESG Rating Overview
Company Overview 02 03 04 ESG Rating Overview: Continuous Improvement through Reporting and Engagement CDP Climate: B Prime C+ 61/100 Current Score BBB 17.8 Low Risk CDP Water: C (as of May 7th, 2021) DJSI Europe BBB – A Sector Average CDP Climate: C - 23/100 - (of MSCI ACWI Index) CDP Climate: C Pr
Slide 13: Global Sales Base in Growing, Non-Cyclical Markets
Company Overview 02 03 04 Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2020 Sales by Region Sales in € bn 6% 35,409 36,277 CAGR 33,886 33,530 Latin America Africa 29,471 4% 1% Asia-Pacific 10% €36.3 bn Europe 4,612 44% 4,830 4,688 4,302 4,561 North America 41% 2016 2017 2018 2
Slide 14: Strong Track Record of Organic Sales Growth
Company Overview 02 03 04 Strong Track Record of Organic Sales Growth 5% 7% 7% 7% 7% CAGR 5% 5% 6% 6% 4% 4% 4% 3% 5% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 4% 3% 16% 16% 4% 5% 4% 4% 3% 6% 5% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 -8% Shaded areas show estimated COVID-19 effects
Slide 15: Strong and Balanced Health Care Portfolio
Company Overview 02 03 04 Strong and Balanced Health Care Portfolio Ownership: ~32% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Hospital Supplies Hospital Operation Projects and Services Health Care Services for Hospitals • Dialysis services • IV drugs • Acute care • Post-acute
Slide 16: Fresenius Medical Care: Global Dialysis Market Leader
Company Overview 02 03 04 Fresenius Medical Care: Global Dialysis Market Leader • The world’s leading provider of dialysis Sales by Region Market Dynamics products and services treating ~346,000 patients1 in ~4,100 clinics1 Asia-Pacific North America Increase in worldwide demand • Provide highest st
Slide 17: Fresenius Kabi: A Leading Global Hospital Supplier
Company Overview 02 03 04 Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for Sales by Region Market Dynamics critically and chronically ill patients • Strong Emerging Markets presence Emerging Markets Growing healthcare spending • Leading market positions 31% in
Slide 18: Fresenius Helios: Europe's Largest Private Hospital Operator
Company Overview 02 03 04 Fresenius Helios: Europe’s Largest Private Hospital Operator • Market leader in size and quality with Sales by Region Market Dynamics excellent growth prospects • ~5%1 share in German acute care Hospital market in Germany hospital ~12%1 share in Spanish private ~ € 109 bn h
Slide 19: Fresenius Vamed: Leading Global Hospital Projects and Services Specialist
Company Overview 02 03 04 Fresenius Vamed: Leading Global Hospital Projects and Services Specialist • Manages hospital construction/expansion Sales by Region Market Dynamics projects and provides services for health care facilities worldwide Telemedicine market in Europe Emerging Markets • Offers pr
Slide 20: Medium-term Growth Targets 2020 – 2023
Company Overview 02 03 04 Fresenius Group: Medium-term Growth Targets 2020 – 2023 (CAGRs) 4 – 7% Organic sales growth (plus ~1% small to mid-size confirmed acquisitions) 5 – 9% Organic net income1 growth (plus ~1% small to mid-size acquisitions) confirmed 1 Net income attributable to shareholders of
Slide 21: Earnings-Linked Dividend Policy
Company Overview 02 03 04 Fresenius SE: Earnings-Linked Dividend Policy € per share 0.88 0.84 0.80 Track record 0.75 28th consecutive 0.62 dividend increase 0.55 CAGR dividend increase +15% 0.44 0.42 2020 0.37 Pay-out Ratio: 0.32 Dividend Policy 0.25 0.29 27% Pay-out Ratio 0.23 Dividend growth align
Slide 22: Fresenius Share & Shareholder Structure
Company Overview 02 03 04 Fresenius Share & Shareholder Structure Share price development LTM Analyst recommendations Click to view our interactive share price tool Click to view downloadable set of the consensus data 160 Sell 6% FRE 140 120 DAX Equal-weight/Hold/ Accumulate/Add/Buy/ 100 Neutral 29%
Slide 23: FRE Historical Share Price Performance
Company Overview 02 03 04 FRE Historical Share Price Performance April 2017 Click to view our interactive share price tool 90 € Acquisition of Akorn and Merck KGaA's biosimilars October 2018 business Fresenius confirms and narrows Group guidance 80 € for FY18 70 € March 2020 December 2018 Outbreak o
Slide 24: Business Update Q3/21
01 Business Update 03 04 Agenda 01 03 04 Company 02 Financials Q3/21 Attachments Overview & Outlook Business Update Q3/21 Company Presentation January 2022 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 24
Slide 25: Key Messages Q3/21
01 Business Update 03 04 Key Messages Q3/21 Better than anticipated Targets for cost & efficiency Group sales guidance raised Update on strategic sales and net income program confirmed and net income guidance evaluation at FY/21 results growth improved despite cost inflation and ongoing COVID uncert
Slide 26: Cost & Efficiency Program on Track
01 Business Update 03 04 Fresenius Group: Cost & Efficiency Program on Track Corporate • Update on FME25 • Focus on three growth • Divestment of 40-bed- • Establishment of • Initiated first steps for program by Fresenius vectors: broaden hospital (2020 sales: management and new IT operating Medical
Slide 27: Fresenius Kabi: North America back to growth
01 Business Update 03 04 Fresenius Kabi: North America back to growth; Emerging markets with continued healthy financial performance North America Europe Asia Pacific Biosimilars Healthy growth in Europe driven by China slowing down due to price Adalimumab expands global market Healthy organic sales
Slide 28: Fresenius Helios: Overall financial performance better than anticipated
01 Business Update 03 04 Fresenius Helios: Overall financial performance better than anticipated; in Germany continued rising elective treatments; treatment activity in Spain above pre-pandemic levels in most medical areas Helios Germany Helios Spain Fertility Services Hospital operations increasing
Slide 29: Fresenius Vamed: Service business with continuous growth in Q3/21
01 Business Update 03 04 Fresenius Vamed: Service business with continuous growth in Q3/21; International project business still marked by COVID-19 related headwinds Update? © ZOMM VP.AT Ongoing COVID-19 effects weigh on business in Q3/21 Project business – order book remains strong International pr
Slide 30: Financials Q3/21 & Outlook
01 02 Financials & Outlook 04 Agenda 01 02 04 Company Business Update 03 Attachments Overview Q3/21 Financials Q3/21 & Outlook Company Presentation January 2022 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 30
Slide 31: Q3/21 Profit and Loss Statement
01 02 Financials & Outlook 04 Q3/21 Profit and Loss Statement Sales EBIT +5% -6% Net Income Q3/21: €9,324 m Q3/21: €1,041 m +2% Income Tax Rate Net Interest Q3/21: €435 m 23.0% -€126 m Q3/20: 22.0% Q3/20: -€154 m All growth rates in constant currency (cc) Before special items Net income attributable
Slide 32: Q3/21 Business Segment Growth
01 02 Financials & Outlook 04 Q3/21 Business Segment Growth Organic sales growth EBIT growth (cc) +1% -19% +8% +7% +5% 0% 0% +309% +3% -6% All figures before special items For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/
Slide 33: Q3/21 Cash Flow
01 02 Financials & Outlook 04 Q3/21 Cash Flow Operating CF Capex (net) Free Cash Flow1 €m Q3/2021 LTM Margin Q3/2021 LTM Margin Q3/2021 LTM Margin 691 13.8% -181 -4.9% 510 8.9% 393 16.4% -128 -8.0% 265 8.4% 157 9.7% -111 -5.9% 46 3.8% 9 4.6% -10 -3.3% -1 1.3% Corporate/Other -24 n.a. -3 n.a. -27 n.a
Slide 34: FY/21 Financial Outlook by Business Segment
01 02 Financials & Outlook 04 FY/21 Financial Outlook by Business Segment FY/21e FY/20 Q1-3/21 published FY/21e €m (except otherwise stated) Base Actual FY/21e July 2021 New Low-to-mid single- Sales growth (org) 6,976 6% Confirmed Confirmed digit % Stable-to-low single- Low single- Around top-end of
Slide 35: FY/21 Financial Guidance
01 02 Financials & Outlook 04 FY/21 Financial Guidance FY/21e FY/20 Q1-3/21 published FY/21e €m (except otherwise stated) Base Actual FY/21e July 2021 New Sales growth (cc) 36,277 5% Low-to-mid Confirmed Mid single-digit % single-digit % Net income growth (cc) 1,796 6% At least Low single-digit % Ar
Slide 36: Attachments
01 02 03 Attachments Agenda 01 02 03 Company Business Update Financials Q3/21 04 Overview Q3/21 & Outlook Attachments Company Presentation January 2022 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 36
Slide 37: Fresenius Kabi: Organic Sales Growth by Regions
01 02 03 Attachments Fresenius Kabi: Q3 & Q1-3/21 Organic Sales Growth by Regions Δ YoY Δ YoY €m Q3/21 organic Q1-3/21 organic North America 589 6% 1,669 -4% Europe 620 5% 1,880 5% Emerging Markets 645 13% 1,821 19% Total sales 1,854 8% 5,370 6% Company Presentation January 2022 © Fresenius SE & Co.
Slide 38: Fresenius Kabi: Organic Sales Growth by Product Segment
01 02 03 Attachments Fresenius Kabi: Q3 & Q1-3/21 Organic Sales Growth by Product Segment Δ YoY Δ YoY €m Q3/21 organic Q1-3/21 organic IV Drugs 719 4% 2,105 -2% Infusion Therapy 221 9% 632 8% Clinical Nutrition 570 12% 1,608 15% Medical Devices/ 344 9% 1,025 11% Transfusion Technology Total sales 1,
Slide 39: Fresenius Kabi: Q3 & Q1-3/21 EBIT Growth
01 02 03 Attachments Fresenius Kabi: Q3 & Q1-3/21 EBIT Growth €m Q3/21 Δ YoY cc Q1-3/21 Δ YoY cc North America 165 -1% 501 -20% Margin 28.0% -190 bps 30.0% -610 bps Europe 93 7% 310 15% Margin 15.0% +20 bps 16.5% +130 bps Emerging Markets 165 15% 447 44% Margin 25.6% +40 bps 24.5% +410 bps Corporate
Slide 40: Fresenius Helios: Q3 & Q1-3/21 Key Financials
01 02 03 Attachments Fresenius Helios: Q3 & Q1-3/21 Key Financials €m Q3/21 Δ YoY cc Q1-3/21 Δ YoY cc Total sales 2,622 5%1 8,009 7%1 Thereof Helios Germany 1,640 3%1 4,988 2%1 Thereof Helios Spain 941 8%1 2,937 18%1 Total EBIT 222 0% 788 14% Margin 8.5% -90 bps 9.8% +10 bps Thereof Helios Germany 1
Slide 41: Fresenius Helios: Key Metrics
01 02 03 Attachments Fresenius Helios: Key Metrics Q1-3/21 FY/20 Δ No. of hospitals Germany 89 89 0% - Acute care hospitals 86 86 0% No. of hospitals Spain 53 52 2% (Hospitals) No. of beds Germany 30,074 29,978 0% - Acute care hospitals 29,540 29,451 0% No. of beds Spain 7,987 7,936 1% (Hospitals) A
Slide 42: Fresenius Vamed: Q3 & Q1-3/21 Key Financials
01 02 03 Attachments Fresenius Vamed: Q3 & Q1-3/21 Key Financials €m Q3/21 Δ YoY cc Q1-3/21 Δ YoY cc Total sales 516 0% 1,549 4% Thereof organic sales 0% 4% Project business 106 -24% 384 -10% Service business 410 9% 1,168 10% Total EBIT 23 -- 35 -- Order intake1 120 -- 971 -- Order backlog1 3,647 19
Slide 43: Calculation of Noncontrolling Interests
01 02 03 Attachments Fresenius Group: Calculation of Noncontrolling Interests €m Q1-3/21 Q1-3/20 Earnings before tax and noncontrolling interests 2,696 2,866 Taxes -604 -651 Noncontrolling interests, thereof -747 -913 Fresenius Medical Care net income not attributable to Fresenius -508 -670 (Q1-3/21
Slide 44: Fresenius Group: Cash Flow
01 02 03 Attachments Fresenius Group: Cash Flow €m Q3/21 LTM Margin Δ YoY Operating Cash Flow 1,226 12.8% 2% Capex (net) -433 -5.8% 16% Free Cash Flow 793 7.0% 16% (before acquisitions and dividends) Acquisitions (net) -124 Dividends -75 Free Cash Flow 594 1.8% -- (after acquisitions and dividends)
Slide 45: Estimated COVID-19 Effects Q3 & Q1-3/21
01 02 03 Attachments Estimated COVID-19 Effects Q3 & Q1-3/21 Growth cc Estimated Estimated as reported COVID-19 impact cc growth cc incl. COVID-19 excl. COVID-19 Q3/21 Q3/20 Q3/21 Q3/20 Q3/21 Q3/20 Sales 5% 5% -2% to -3% -1% to -2% 7% to 8% 6% to 7% Net income1 2% 1% -10% to -14% 0% to -4% 12% to 16
Slide 46: Proven Track Record of Deleveraging
01 02 03 Attachments Fresenius Group: Proven Track Record of Deleveraging Net Debt/EBITDA1 4 3.6x 3.6x 3 3.6x 3 3.5x 3.55 3 3.5 3,5 3.2x 3.5x 3 3.1x 3.4x 3 3.0x 3.0x 3.0x 3 2.8x 2.7x 2.7x 2.7x 2.6x 2.7x 2.5 2,5 2.6x 2.6x 2.2x 2.5x 2.3x 2.3x 2 2 2002 2003 2004 2005 Q1/06 2006 2007 2008 2009 2010 2011
Slide 47: Major Long-term Debt Maturities
01 02 03 Attachments Fresenius Group: Major Long-term Debt Maturities1 €m 3,000 3000 Maturity 4.6 years on average 738 2,000 2000 500 2,330 584 1,093 860 1000 1,000 1,000 1,834 1,657 1,425 1,250 932 750 604 650 500 500 500 345 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Fresen
Slide 48: Sales by Business Segment Effects Q3/21
01 02 03 Attachments Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q3/21 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m Q3/21 Q3/20 rates effects rates growth tions Others Fresenius Medical Care 4,442 4,414 1% 0% 1% 1% 1% -1% Freseniu
Slide 49: Sales by Business Segment Effects Q1-3/21
01 02 03 Attachments Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q1-3/21 Growth at Currency Growth at Divesti- actual translation constant Organic Acquisi- tures/ €m Q1-3/21 Q1-3/20 rates effects rates growth tions Others Fresenius Medical Care 12,972 13,459 -4% -6% 2% 1% 1% 0%
Slide 50: Solid Balance Sheet Structure
01 02 03 Attachments Fresenius Group: Solid Balance Sheet Structure B/S total (€bn) 46.7 53.1 56.7 67.0 66.6 71.1 • Healthy Equity and Liability Split • Strong equity ratio of >40% on average 41% 40% 39% 40% 45% 44% • Equity ratio kept in narrow range despite rapid growth of Fresenius Group 36% 33%
Slide 51: Financial Performance Indicators
01 02 03 Attachments Fresenius Group: Financial Performance Indicators Growth Profitability Liqudity Capital efficiency Capital management Sales growth Operating income (EBIT) Operating cash flow EBIT Net debt (in constant currency) +/ - Financial result ÷ Sales Income taxes ÷ EBITDA Sales growth -
Slide 52: Performance Indicators 5-year Overview
01 02 03 Attachments Fresenius Group1: Performance Indicators 5-year Overview Targets 20202 2020 2019 2018 2017 2016 Sales growth (in constant currency) +3% to +6% 5% 6% 6% 16% 6% Net income3 growth (in constant currency) -4% to +1% -3% 0% 7% 21% 13% Liquidity and capital management Cash flow margin
Slide 53: Business Segments: Performance Indicators 5-year Overview
01 02 03 Attachments Business segments1: Performance Indicators 5-year Overview Targets 20202 2020 2019 2018 2017 2016 Fresenius Medical Care Sales growth Mid-to-high single-digit (in constant currency) %-range 5% 5% 4% 9% 7% Net income growth 3,4 Mid-to-high single-digit (in constant currency) %-ra
Slide 54: Financial Calendar / Contact
01 02 03 Attachments Financial Calendar / Contact Financial Calendar Contact 22 February 2022 Results FY/21 Investor Relations & Sustainability 04 May 2022 Results Q1/22 Fresenius SE & Co. KGaA phone: +49 6172 608-2485 13 May 2022 Annual General Meeting e-mail: ir-fre@fresenius.com 02 August 2022 Re
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