Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Investor Presentation (February 2025)
38 slides from Fresenius Medical Care's investor presentation, February 2025
Slide 1: Fresenius Medical Care AG Investor Presentation FY 2024
Fresenius Medical Care AG Investor Presentation FY 2024 February 2025
Slide 2: Safe harbor statement
Safe harbor statement: In this Safe harbor statement, “the Company” and “Fresenius Medical Care” refer to Fresenius Medical Care AG & Co. KGaA, a German partnership limited by shares, prior to its conversion of legal form, and to Fresenius Medical Care AG, a German stock corporation, after its conve
Slide 3: Agenda
1 Markets and growth drivers 2 Execution against strategic plan 3 FY 2024 Business Update 4 Outlook 5 Appendix
Slide 4: We are the leading kidney care company globally
We are the leading kidney care company globally Q4 2024 Conference Call Health care systems vary between countries and even within them, influenced by factors such as treatment methods, local regulations and the type of dialysis. As the leading Care Delivery Care Enablement vertically integrated glo
Slide 5: Our operating model leverages the advantages of vertical integration
Our operating model leverages the advantages of vertical integration Q4 2024 Conference Call €19.3 billion REVENUE¹ Focus on Early access to innovation in value creation Predictability and scale in dialysis MedTech in both businesses supply chain Leverage infrastructure Care Delivery and global G&A
Slide 6: Care Delivery | We are the world's leading provider of dialysis services
Care Delivery | We are the world’s leading provider of dialysis services Q4 2024 Conference Call More than Around 65% 78% 299,000 3,700 of dialysis centers of patients rated 3 stars or better would highly Patients worldwide Dialysis centers by CMS recommend our service Treated Around Around Top 37%
Slide 7: Care Enablement | We are the market leading renal Medtech company
Care Enablement | We are the market leading renal Medtech company Q4 2024 Conference Call Around Around 51,000 50% share in hemodialysis machines installed in 2024 product market Around Global Global Global 174 M 50% #1 #1 #2 dialyzers sold Home HD machines in 2024 of all dialysis patients In-center
Slide 8: Underlying business fundamentals intact
Underlying business fundamentals intact | Extrapolation from 2020 Conference to 2035Q4 2024 Call Ageing global population Hypertension Diabetes Dialysis patients One out of three people +60% worldwide has hypertension2 +40% +90% Global population People living People on maintenance aged 65+1 with di
Slide 9: Strategic growth drivers | Value-based care and home dialysis
Strategic growth drivers | Value-based care and home dialysis Q4 2024 Conference Call Market leader transforming U.S. value-based care Market leader further expanding U.S. home dialysis industry Premier value-based care capabilities addressing growing population of Accelerating shift to home dia
Slide 10: Our commitment to sustainability: Purpose driven. Patient-centric
Our commitment to sustainability: Purpose driven. Patient-centric Conference Q4 2024 Call FY 2024 progress in our strategic focus areas Enhance Build Reduce quality of care and access the best team to our environmental to health care serve patients footprint High patient satisfaction Employee engage
Slide 11: Agenda
1 Markets and growth drivers 2 Execution against strategic plan 3 FY 2024 Business Update 4 Outlook 5 Appendix
Slide 12: 2024 | Successful execution in year two of a three-year turnaround
2024 | Successful execution in year two of a three-year turnaround and Q4 2024 Conference Call transformation plan STRATEGIC PROGRESS OPERATIONAL PERFORMANCE Strengthened foundation and accelerated momentum for future Group organic revenue growth¹ of 4.1% profitable growth Upper end of the 202
Slide 13: 2024 | Strengthened financial performance driving enhanced value creation
2024 | Strengthened financial performance driving enhanced value creation Q4 2024 Conference Call MARGIN IMPROVEMENT ON TRACK FME25 SAVINGS AHEAD OF PLAN Operating income margin¹ Accumulated FME25 savings in € million 9.5% 9.7% 10.3% 567 9.3% Group 7.9% 8.1% Care Delivery 346 6.1% Care Enablement 2.
Slide 14: FME25 | Savings target further raised to EUR 750 million
FME25 | Savings target further raised to EUR 750 million Q4 2024 Conference Call Sustainable annual savings Given the strong program momentum through 2024, savings target further raised in € million +750 p.a. +750 p.a. by EUR 100m to EUR 750m in 2025 +180 +567 EUR 567m of sustainable savings +22
Slide 15: 2024 | Further divestitures closed as execution of plan continues
2024 | Further divestitures closed as execution of plan continues Q4 2024 Conference Call Portfolio optimization plan as presented in 2023 Divestments of non-core and margin dilutive assets as part of ongoing portfolio optimization plan Closed divestments CD and CE operations in Argentina CD o
Slide 16: Capital allocation | Disciplined financial policy strictly followed
Capital allocation | Disciplined financial policy strictly followed Q4 2024 Conference Call Strong year-on-year progress on deleveraging with net financial leverage ratio currently at 2.9x, below self-imposed range of 3.0x to 3.5x Deleveraging Proceeds from divestments used for ongoing deleverag
Slide 17: Innovation | Introducing a new standard of care to the U.S. with HDF
Innovation | Introducing a new standard of care to the U.S. with expansion Q4 2024 Conference Call of High-Volume Hemodiafiltration (HDF) Leveraging benefits of an integrated company Timeline for U.S. launch 2023 | EU’s CONVINCE Study demonstrates Care Delivery 23% reduction in mortality Opportu
Slide 18: Agenda
1 Markets and growth drivers 2 Execution against strategic plan 3 FY 2024 Business Update 4 Outlook 5 Appendix
Slide 19: 2024 | Key developments at Group level
2024 | Key developments at Group level Q4 2024 Conference Call Dynamic organic revenue growth¹ of +4.1% supported by Care Enablement and Care Delivery Underlying U.S. same market treatment growth turned positive for the full year Exceeding full year FME25 savings target, with additional EUR 22
Slide 20: 2024 | Dynamic organic revenue growth; margin further improved
2024 | Dynamic organic revenue growth; margin further improved Q4 2024 Conference Call Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % 7.0% 8.1% 9.3% 7.2% +2.1% outlook base1 19,454 19,049 19,454 19,336 17.6% +4.1% outlook base1 -405 organic2 -118 1,812
Slide 21: 2024 | Care Delivery continued organic growth and improved margin
2024 | Care Delivery continued organic growth and improved marginConference Q4 2024 Call Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % outlook base1 9.7% 10.3% +1.2% +6.4% outlook base1 15,158 15,337 -253 1,572 +3.7% 1,477 288 60 organic2 12,333 12,81
Slide 22: 2024 | Care Enablement strongly increased operating income margin
2024 | Care Enablement strongly increased operating income margin Q4 2024 Conference Call Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % 2.3% 6.1% +5.0% outlook base1 outlook base1 5,618 +184.4% 5,353 +4.8% 344 organic2 -58 131 150 121 FY 2023 FY 2024
Slide 23: 2024 | Lower net financial debt and improved net leverage ratio
2024 | Lower net financial debt and improved net leverage ratio Q4 2024 Conference Call in € million Q4 2024 Q4 2023 ∆ in % FY 2024 FY 2023 ∆ in % Key developments Operating cash flow 832 719 16 2,386 2,629 -9 In Q4 2024, operating cash flow strongly Capital expenditures, net (233) (239) -2 (685
Slide 24: 2024 | Solid funding profile
2024 | Solid funding profile Q4 2024 Conference Call Diversified financing mix1 Prudent financial policy Other2 1% Schuldschein Loans 2% Sufficient liquidity reserve Undrawn ESG-linked Revolver Credit Facility of €2.0bn Committed bilateral credit lines of ~€670m, supplemented by further USD Bond
Slide 25: Agenda
1 Markets and growth drivers 2 Execution against strategic plan 3 FY 2024 Business Update 4 Outlook 5 Appendix
Slide 26: Outlook | FY 2025 assumptions
Outlook | FY 2025 assumptions Q4 2024 Conference Call Operating income assumptions Operating income drivers in EUR million Revenue assumptions Incremental FME25 savings 180 Revenue drivers Business growth 500-600 U.S. same market treatment growth of above +0.5% Portfolio optimization (realiz
Slide 27: Outlook | FY 2025 | Strong earnings growth
Outlook | FY 2025 | Strong earnings growth Q4 2024 Conference Call FY 2025 Revenue & Operating Income Positive to a low-single digit Revenue percent growth FY 2024 basis: EUR 19,336 million Implied Group operating income margin around 11% to 12% High-teens to high-twenties Operating percent growth i
Slide 28: Target picture 2025+
Target picture 2025+ Q4 2024 Conference Call Partner of choice, setting the standard in kidney care with industry-leading returns Care Delivery Care Enablement Service provider of choice for patients, Profitably shape the global dialysis market physicians and payors across the with leading digital p
Slide 29: Appendix
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Slide 30: FY 2024 | Profit and Loss
FY 2024 | Profit and Loss Q4 2024 Conference Call FY 2024 FY 2023 Growth Growth € million € million in % in % cc Revenue 19,336 19,454 -1 0 Revenue (outlook base)1 19,454 19,049 2 Operating income 1,392 1,369 2 3 Operating income margin in % 7.2 7.0 Operating income (outlook base)1 1,812 1,540 18 Op
Slide 31: 2023 base for 2024 targets, reconciliation adjustments
2023 base for 2024 targets, reconciliation adjustments Q4 2024 Conference Call Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparison with outlook Inter-segment Group Care Delivery Care Enablement Corporate eliminations € million FY 2024
Slide 32: Debt
Debt Q4 2024 Conference Call FY 2024 FY 2023 FY 2022 € million € million € million Debt Short-term debt from unrelated parties 2 457 644 + Short-term debt from related parties - - 4 + Current portion of long-term debt 575 487 694 + Current portion of lease liabilities from unrelated parties 616 593
Slide 33: Return on Invested Capital (ROIC) continued to be impacted by lower earnings
Return on Invested Capital (ROIC) continued to be impacted by lower Q4 2024 Conference Call earnings 12.4% rep. 8.6% 7.8% 8.0% adj. 8.0% adj. 7.1% 6.6%adj. 6.1% rep. 5.1% adj. 5.8% rep. 3.9% adj. 3.6% adj. 4.5% adj. 4.9% rep. 3.5% rep. 3.3% rep. 2.8% rep. 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 34: Patients, treatments, clinics
Patients, treatments, clinics Q4 2024 Conference Call as of December 31, 2024 as of December 31, 2023 Patients Treatments Clinics Patients Treatments Clinics United States 206,436 31,213,447 2,624 205,308 31,210,375 2,615 Growth in % 1 0 0 International 92,916 16,403,624 1,051 127,240 20,444,165 1,3
Slide 35: Continuous monitoring of clinical performance to enhance care
Continuous monitoring of clinical performance to enhance care Q4 2024 Conference Call 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 dial
Slide 36: Segment information for FY 2021, 2022, 2023 and 2024
Segment information for FY 2021, 2022, 2023 and 2024 Q4 2024 Conference Call Growth Organic Growth Organic Growth Organic € million; % change year-over-year FY 2024 Growth FY 2023 Growth FY 2022 Growth FY 2021 at cc growth at cc growth at cc growth Total Revenue 19,336 -1 0 4 19,454 0 5 4 19,398 10
Slide 37: IR event calendar
IR event calendar Q4 2024 Conference Call Date Event Report on Q1 2025: Earnings Release and Conference Call Reporting May 6, 2025 AGM May 22, 2025 Annual General Meeting & August 5, 2025 Report on Q2 2025: Earnings Release and Conference Call November 4, 2025 Report on Q3 2025: Earnings Release and
Slide 38: Contacts
Contacts Q4 2024 Conference Call Fresenius Medical Care AG Investor Relations Else-Kröner-Str. 1 61352 Bad Homburg v. d. H. Germany Dr. Dominik Heger Ilia Kuerten Alicia Cahill Head of Investor Relations Vice President Senior Director ir@FreseniusMedicalCare.com and Investor Relations Investor Rel
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