Fresenius Medical Care (FME) 43rd Annual J.P. Morgan Healthcare Conference summary

Strategic transformation and portfolio focus

• Undertook a comprehensive transformation over the past two years, simplifying the organization, focusing on core businesses, and improving transparency and performance.

• Deconsolidated Fresenius Medical Care, exited non-core businesses, and sharpened focus on Kabi (pharma, nutrition, medtech) and Helios (hospital network).

• Implemented a financial framework with clear growth and margin targets, benchmarking against best-in-class competitors.

• Achieved significant operational improvements, with revenue growth rising from 3% to 8% and EBIT margin from 9.8% to 11.5%.

• Strengthened the balance sheet, reducing leverage to within the target corridor for the first time in seven years.

Business platforms and growth drivers

• Core businesses are structured around patient needs and disease patterns, enabling relevance at critical points in the patient journey.

• Kabi focuses on IV generics, fluids, clinical nutrition, and medtech, with leading market positions and high barriers to entry.

• Biopharma, including biosimilars and CDMO, is transitioning from an investment case to a mature business, with Tyenne (biosimilar for Actemra) as a key growth driver.

• Three growth vectors—nutrition, medtech, and biopharma—are expected to drive top-line and margin expansion, while pharma remains stable and cash-generative.

• U.S. market is critical, with 70% of essential medicines covered and significant local production and supply chain integration.

Financial discipline and capital allocation

• Maintains a disciplined approach to capital allocation, prioritizing organic growth and cash flow generation.

• Plans to resume a progressive dividend policy, starting at previous levels, after a temporary pause.

• Leverage corridor likely to be adjusted downward, signaling continued financial discipline.

• Retains a 32% stake in Fresenius Medical Care as an investment, expecting value creation before considering divestment.