Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q1 2023 Earnings Presentation
27 slides from Fresenius Medical Care's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Conference Call
Q1 2023 Conference Call May 9, 2023 Helen Giza, CEO & Chair of the Management Board © Copyright
Slide 2: Offering material notice: proposed conversion of legal form
This presentation may be deemed to be offering material in respect of the proposed conversion of the legal form of Fresenius Medical Care AG & Co. KGaA. Fresenius Medical Care AG & Co. KGaA has filed with the United States Securities and Exchange Commission (the “SEC”) a registration statement on Fo
Slide 3: 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 4: Agenda
1 Business Update 2 Outlook Agenda
Slide 5: Executing on our strategic aspiration
Executing on our strategic aspiration 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 effic
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: Q1 2023: Improving trends and execution on turnaround plan
Q1 2023 | Improving trends and execution on turnaround plan ▪ Organic growth driven by both segments ‒ Care Delivery | improving volume trends ‒ Care Enablement | strong critical care business 1 ▪ More moderate decline in operating income due to improved business performance and phasing of product s
Slide 8: Q1 2023: Improving trends moderated earnings decline
Q1 2023 | Improving trends moderated earnings decline Revenue | guidance base1 Operating income | guidance base1 Margin in % 7.6% 8.6% 7.5% 5.5% +2% cc in € million +2% organic in € million -13% cc 4,548 4,704 390 354 58 -16 93 348 261 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Operating Income (guidance base)
Slide 9: Q1 2023: Operating income development
Q1 2023 | Operating income development in € million 390 -8 42 -27 354 348 0 -1 93 261 Q1 2022 Special items Q1 2022 Care Care Inter- Corporate Q1 2023 Special Q1 2023 operating & PRF operating Delivery Enablement segment operating items operating income income income income excluding excluding speci
Slide 10: Q1 2023: Key developments in Care Delivery
Q1 2023 | Key developments in Care Delivery Execution on turnaround plan drives efficiencies Optimization of clinical infrastructure underway Easing of labor market environment in the U.S. but not normalized yet Progressing FME25 transformation Sequential improvement of volume development still impa
Slide 11: Care Delivery performance supported by improving volume trends
Q1 2023 | Care Delivery performance supported by improving volume trends Revenue | guidance base1 Operating income | guidance base1 Margin in % 8.2% 8.5% 8.0% 7.6% +1% cc -6% cc in € million in € million +2% organic 310 302 3,647 3,756 -16 -47 35 28 4 717 753 18 298 284 2,930 3,003 Business FME25 gr
Slide 12: Q1 2023: Key developments in Care Enablement
Q1 2023 | Key developments in Care Enablement Progressing turnaround measures in face of continued inflationary pressure First decision on portfolio optimization executed with P&L impact due to write-offs Progressing FME25 transformation Improved sales of home hemodialysis machines Strong performanc
Slide 13: Care Enablement earnings impacted by inflation
Q1 2023 | Care Enablement earnings impacted by inflation Revenue | guidance base1 Operating income | guidance base1 Margin in % 5.5% 7.6% 5.2% -1.9% +3% cc in € million -32% cc +3% organic in € million 1,267 1,311 96 4 27 69 -50 19 69 Business FME25 93 growth Inflation savings -24 Q1 2022 Q1 2023 Q1
Slide 14: Q1 2023: Cash flow and net leverage ratio
Q1 2023 | Cash flow and net leverage ratio Q1 2023 Q1 2022 € million € million Operating cash flow 143 159 Key developments ▪ Capital expenditures, net (141) (160) Free cash flow 2 (1) ▪ Slightly lower operating ▪ Free cash flow after investing activities (20) (53) cash flow mainly due to decrease i
Slide 15: Agenda
1 Business Update 2 Outlook Agenda
Slide 16: Outlook confirmed
Outlook confirmed FY 2023 Revenue [%] Operating income [%] Low to mid-single digit growth Flat to high-single digit decline (FY2022 basis: EUR 19.4bn) (FY2022 basis: EUR 1.54bn1) Further outlook By 2025 an improved operating income margin of 10 to 14% is targeted Outlook is provided in constant curr
Slide 17: Your questions are welcome.
Your questions are welcome. Q1 2023 © Copyright
Slide 18: Appendix
FRESENIUS MEDICAL CARE ayy w Vv xX Append
Slide 19: Q1 2023: Profit and Loss
Q1 2023 | Profit and Loss Q1 2023 Q1 2022 Growth Growth € million € million in % in %cc Revenue 4,704 4,548 3 2 Operating income 261 348 (25) (28) Operating income margin in % 5.5 7.6 Operating income excl. special items & PRF 354 390 (9) (13) Operating income margin in % excl. sp. items & PRF 7.5 8
Slide 20: Debt
Debt Reconciliation of non-IFRS financial measures to most directly comparable IFRS financial measures Q1 2023 FY 2022 FY 2021 € million € million € million Debt Short-term debt from unrelated parties 700 665 1,178 + Short-term debt from related parties 13 4 78 + Current portion of long-term debt 69
Slide 21: EBITDA
EBITDA Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q1 2023 FY 2022 FY 2021 € million € million € million Net income 816 895 1,219 + Income tax expense 303 325 353 − Interest income (66) (68) (73) + Interest expense 3
Slide 22: 2022 base for 2023 targets, reconciliation adjustments
2022 base for 2023 targets, reconciliation adjustments FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 € million € million € million € million € million 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
Slide 23: 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 24: 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 Q1 2023 FY 2022 FY 2021 Q1 Q2 Q3 Q4 Full year €:USD Period end 1.088 1.067 1.133 2022 77 78 79 79 313 Average 1.073 1.053 1.183 2021 77 78 79 79 313 2020 77 78 79 79 313 €:CNY Period end 7.476 7
Slide 25: Patients, treatments, clinics
Patients, treatments, clinics as of March 31, 2023 as of December 31, 2022 Patients Treatments Clinics Patients Treatments Clinics United States 206,197 7,709,803 2,636 206,033 31,361,555 2,671 Growth in % 1 0 (2) 0 (2) 0 International 136,870 5,133,771 1,424 138,654 20,948,576 1,445 Growth in % (1)
Slide 26: Conferences & Management Meet the
Financial calendar Date Event Reporting May 9 Report on 1st quarter 2023: Earnings Release and Conference Call & AGM May 16 Annual General Meeting July 14 Extraordinary General Meeting August 2 Report on 2nd quarter 2023: Earnings Release and Conference Call May 24 Berenberg Conference, New York Jun
Slide 27: Contacts
Contacts FME Investor Relations Dr. Dominik Heger Robert Adolph Ilia Kuerten Else-Kröner-Str. 1 Head of Investor Relations, Vice President Vice President 61352 Bad Homburg v. d. H. Strategic Development & Investor Relations Investor Relations Germany Communications | EVP Ticker: FME or FMS (NYSE/ADR
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