Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q2 2023 Earnings Presentation
28 slides from Fresenius Medical Care's earnings presentation, Aug 2, 2023
Slide 1: Q2 2023 Conference Call
Q2 2023 Conference Call August 2, 2023 Helen Giza, CEO & Chair of the Management Board © 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 Q2 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: 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 6: Agenda
1 Execution against strategic plan 2 Q2 Business Update Agenda 3 Outlook
Slide 7: Q2 2023 | Acceleration of organic growth & improved productivity
Q2 2023 | Acceleration of organic growth & improved productivity ▪ Accelerated organic revenue growth driven by both operating segments including sequentially stable treatment volumes in the U.S. ▪ Execution on turnaround plan translates into visible 2 productivity improvements in Care Delivery achi
Slide 8: Q2 2023 | Acceleration of organic growth
Q2 2023 | Acceleration of organic growth Revenue | guidance base1 Operating income | guidance base1 in € million Margin in % 7.2% 6.0% 8.3% 7.4% +6% cc +44% cc 4.757 4.825 in € million +6% organic 401 104 44 357 341 -161 284 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Operating Income (guidance base) Special it
Slide 9: Q2 2023 | Operating income development
Q2 2023 | Operating income development Margin in % 6.0% 8.3% In € million -7 -7 16 401 44 357 341 115 57 284 Q2 2022 Special items Q2 2022 Care Care Inter- Corporate Q2 2023 Special Q2 2023 operating & PRF operating Delivery Enablement segment operating items operating income income income income ex
Slide 10: Q2 2023 | Key developments in Care Delivery
Q2 2023 | Key developments in Care Delivery ▪ Organic revenue growth supported by value-based care business, reimbursement increases and favorable payor mix ▪ Stable sequential development of volumes, still impacted by annualization effects of excess mortality ▪ Positive impact from lower personnel
Slide 11: Q2 2023 | Care Delivery supported by improving productivity
Q2 2023 | Care Delivery supported by improving productivity Revenue | guidance base1 Operating income | guidance base1 in € million Margin in % 11.3% 7.5% 10.4% 9.9% +42% cc in € million 433 15 +6% cc 45 402 18 384 3,822 +6% organic 3,873 -161 38 32 756 753 287 Labor / FME25 Inflation Business savin
Slide 12: Q2 2023 | Key developments in Care Enablement
Q2 2023 | Key developments in Care Enablement ▪ Revenue development driven by ▪ higher sales of HD machines, critical care and home dialysis products ▪ positive impacts from pricing measures ▪ Earnings negatively impact by ▪ currency transaction effects ▪ continued inflationary pressures ▪ Execution
Slide 13: Q2 2023 | Care Enablement earnings impacted by inflation
Q2 2023 | Care Enablement earnings impacted by inflation Revenue | guidance base1 Operating income | guidance base1 Margin in % in € million -0.8% 0.2% 1.4% 0.1% +601% cc +6% cc in € million 1.318 +6% organic 1.325 23 -25 19 18 FME25 Inflation 17 3 2 savings 14 Business growth -11 Q2 2022 Q2 2022 Q2
Slide 14: Q2 2023 | Increased free cash flow conversion
Q2 2023 | Increased free cash flow conversion Q2 2023 Q2 2022 € million € million Operating cash flow 1,007 751 Key developments ▪ Capital expenditures, net (155) (169) Free cash flow 852 582 ▪ Improved operating cash ▪ Free cash flow after investing activities 874 554 flow mainly due to seasonality
Slide 15: Agenda
1 Execution against strategic plan 2 Q2 Business Update Agenda 3 Outlook
Slide 16: Outlook | Operating income guidance range narrowed
Outlook | Operating income guidance range narrowed FY 2023 Revenue [%] Operating income [%] Low to mid-single digit growth Flat to low-single digit decline (Prev.: flat to high-single digit percentage rate decline) (FY2022 basis: EUR 19.4bn) (FY2022 basis: EUR 1.54bn1) Further outlook By 2025 an imp
Slide 17: Your questions are welcome.
Your questions are welcome. Q2 2023 © Copyright
Slide 18: Appendix
FRESENIUS MEDICAL CARE ayy w Vv xX Append
Slide 19: Q2 2023 | Profit and Loss
Q2 2023 | Profit and Loss Q2 2023 Q2 2022 Growth Growth € million € million in % in %cc Revenue 4,825 4,757 1 6 Operating income 357 341 5 5 Operating income margin in % 7.4 7.2 Operating income excl. special items & PRF 401 284 41 44 Operating income margin in % excl. sp. items & PRF 8.3 6.0 Net in
Slide 20: H1 2023 | Profit and Loss
H1 2023 | Profit and Loss H1 2023 H1 2022 Growth Growth € million € million in % in %cc Revenue 9,529 9,305 2 4 Operating income 618 688 (10) (11) Operating income margin in % 6.5 7.4 Operating income excl. special items 755 675 12 11 Operating income margin in % excl. special items 7.9 7.2 Net inte
Slide 21: Debt
Debt Reconciliation of non-IFRS financial measures to most directly comparable IFRS financial measures Q2 2023 FY 2022 FY 2021 € million € million € million Debt Short-term debt from unrelated parties 901 665 1,178 + Short-term debt from related parties 3 4 78 + Current portion of long-term debt 701
Slide 22: EBITDA
EBITDA Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q2 2023 FY 2022 FY 2021 € million € million € million Net income 805 895 1,219 + Income tax expense 321 325 353 − Interest income (77) (68) (73) + Interest expense 3
Slide 23: 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 24: 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 25: 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 H1 2023 FY 2022 FY 2021 Q1 Q2 Q3 Q4 Full year €:USD Period end 1.087 1.067 1.133 2023 77 78 79 79 313 Average 1.081 1.053 1.183 2022 77 78 79 79 313 2021 77 78 79 79 313 €:CNY Period end 7.898 7
Slide 26: Patients, treatments, clinics
Patients, treatments, clinics as of June 30, 2023 as of June 30, 2022 Patients Treatments Clinics Patients Treatments Clinics United States 206,692 15,525,016 2,634 206,766 15,544,134 2,682 Growth in % 0 0 (2) (1) (2) 1 International 137,394 10,287,972 1,416 138,921 10,388,010 1,481 Growth in % (1)
Slide 27: Conferences & Management
Financial calendar Date Event Reporting August 2 Report on 2nd quarter 2023: Earnings Release and Conference Call & AGM November 2 Report on 3rd quarter 2023: Earnings Release and Conference Call September 5 Commerzbank / ODDO BHF Corporate Conference, Frankfurt September 7 Goldman Sachs Annual Euro
Slide 28: 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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