Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q1 2024 Earnings Presentation
26 slides from Fresenius Medical Care's earnings presentation, May 7, 2024
Slide 1: Q1 2024 IR Conference Call
Analyst Presentation Helen Giza CEO & Chair of the Management Board Martin Fischer CFO May 7, 2024 Q1 2024 IR Conference Call
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: Execution against strategic plan, Q1 Business Update, Outlook
1 Execution against strategic plan 2 Q1 Business Update 3 Outlook
Slide 4: Q1 2024 Highlights: Clear execution of strategy
Q1 2024 Highlights | Clear execution of strategy, delivering progress towards 2025 target margin bands Care Delivery Care Enablement ▪ Patient number growth as top priority ▪ Visible inflection point in margins from Q4 2023 ▪ New CD leader in office since January 1 ▪ Significant progress in transfor
Slide 5: Q1 2024 | Key developments at Group level
Q1 2024 | Key developments at Group level ▪ Solid revenue1 growth of 4% driven by both segments Care Delivery and Care Enablement ▪ Operating income1 margin improved in both segments ▪ Care Enablement delivered strong sequential margin improvement with 1 significant progress towards the 2025 target
Slide 6: Key divestments announced and further under way
Key divestments announced and further under way Portfolio optimization plan as presented Divestments of non-core and margin dilutive assets as part of ongoing portfolio optimization plan Closed divestments o CD and CE operations in Argentina ✓ o CD operations in Hungary, Chile, Sub-Saharan Africa1,
Slide 7: Q1 Business Update
1 Execution against strategic plan 2 Q1 Business Update 3 Outlook
Slide 8: Continued revenue growth with 130bps margin improvement
Q1 2024 | Continued revenue growth with 130bps margin improvement Revenue | outlook base1 Operating income | outlook base1 in € million Margin in % 5.5% 7.3% 8.6% 5.2% +4.4% outlook base1 4,704 4,619 4,822 4,725 +23.0% in € million outlook base1 -85 +4.8% -97 416 organic 77 338 -13 261 246 -157 Q1 2
Slide 9: Operating margin improvement driven by both segments
Q1 2024 | Operating margin improvement driven by both segments Margin in % 7.3% 8.6% In € million 15 7 70 416 -14 -13 77 338 261 246 -157 Q1 2023 Special Q1 2023 Care Care Inter- Corporate Q1 2024 Fx Special items Q1 2024 operating items & 2023 operating Delivery Enablement segment operating operati
Slide 10: Care Delivery delivers solid revenue and operating income growth
Q1 2024 | Care Delivery delivers solid revenue and operating income growth year-over-year Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % 7.8% outlook base1 9.3% +5.2% +24.5% outlook base1 3,859 3,669 19 357 +5.9% -69 organic 287 120 2,962 3,139 Busines
Slide 11: Care Enablement progressing towards 2025 target margin band
Q1 2024 | Care Enablement progressing towards 2025 target margin band Revenue | outlook base1 Operating income | outlook base1 in € million in € million Margin in % +2.1% 5.0% 6.0% outlook base1 +22.7% 1,303 1,330 outlook base1 +1.6% organic 80 65 -14 0 29 Business FME25 Inflation growth savings Q1
Slide 12: Strict financial policy with focus on deleveraging continues
Q1 2024 | Strict financial policy with focus on deleveraging continues in € million Q1 2024 Q1 2023 Key developments in Q1 2024 Operating cash flow 127 143 ▪ Capital expenditures, net -129 -141 ▪ Operating cash flow decreased by 11%, negatively impacted by EUR 58m Free cash flow -2 2 resulting from
Slide 13: Outlook
1 Execution against strategic plan 2 Q1 Business Update 3 Outlook
Slide 14: FY 2024 | Outlook confirmed
FY 2024 | Outlook confirmed FY 2024 Outlook Mid-term Outlook Low- to mid-single digit Revenue percent growth (outlook base)1 FY 2023 basis: EUR 19.0bn Group operating income margin 10% to 14% by 2025 Mid- to high-teens Operating income percent growth (outlook base)1 FY 2023 basis: EUR 1.54bn Revenue
Slide 15: Your questions are welcome.
Your questions are welcome.
Slide 16: Appendix
Appendix
Slide 17: Q1 2024 | Profit and Loss
Q1 2024 | Profit and Loss Q1 2024 Q1 2023 Growth Growth € million € million in % in % cc Revenue 4,725 4,704 0 2 Revenue (outlook base)1 4,822 4,619 4 Operating income 246 261 -6 -4 Operating income margin in % 5.2 5.5 Operating income (outlook base)1 416 338 23 Operating income margin (outlook base
Slide 18: 2023 base for 2024 targets, reconciliation adjustments
2023 base for 2024 targets, reconciliation adjustments 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 Growth Growth Growth € million Q1 2024 Q1
Slide 19: Debt
Debt Q1 2024 FY 2023 FY 2022 € million € million € million Debt Short-term debt from unrelated parties 109 457 644 + Short-term debt from related parties - - 4 + Current portion of long-term debt 796 487 694 + Current portion of lease liabilities from unrelated parties 592 593 650 + Current portion
Slide 20: EBITDA
EBITDA Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures LTM Q1 2024 FY 2023 FY 2022 € million € million € million Net income 717 732 895 + Income tax expense 296 301 325 − Interest income -92 -88 -68 + Interest expense 434 424 360 + Dep
Slide 21: 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. 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. 4.3% adj. 4.9% rep. 3.0% rep. 3.3% rep. 2.8% rep. 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 ▪ For the years
Slide 22: 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 2024 FY 2023 FY 2022 Q1 Q2 Q3 Q4 Full year €:USD Period end 1.081 1.105 1.067 2024 78 78 79 79 314 Average 1.086 1.081 1.053 2023 77 78 79 78 312 2022 77 78 79 79 313 €:CNY Period end 7.814 7
Slide 23: 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 catheter but Global
Slide 24: Patients, treatments, clinics
Patients, treatments, clinics as of March 31, 2024 as of March 31, 2023 Patients Treatments Clinics Patients Treatments Clinics United States 205,610 7,630,349 2,617 206,197 7,709,803 2,636 Growth in % 0 -1 -1 International 119,274 4,647,301 1,245 136,870 5,133,771 1,424 Growth in % -13 -9 -13 Total
Slide 25: Financial calendar, Conferences and Roadshows
Financial calendar Date Event Reporting May 16, 2024 Annual General Meeting 2024, Frankfurt AGM July 30, 2024 Report on 2nd quarter 2024: Earnings Release and Conference Call & November 5, 2024 Report on 3rd quarter 2024: Earnings Release and Conference Call May 8, 2024 Q1 2024 CEO Roadshow, Frankfu
Slide 26: Contacts
Contacts 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 Relations Head of Investor
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