Fresenius (FRE) 43rd Annual J.P. Morgan Healthcare Conference summary

Strategic Transformation and Business Focus

• Undertook a comprehensive transformation, simplifying structure, focusing on core businesses, and deconsolidating non-core assets over the past two years.

• Shifted to a patient-centric model, aligning business platforms with critical points in the patient journey and disease patterns.

• Emphasized innovation, with new products and a refreshed brand introduced in 2024, and a focus on affordable, accessible healthcare.

• Launched the RESET strategy: revitalization, financial progression, and rejuvenation, with 2025 expected to see growth driven by new products.

• Strengthened management team and company momentum, preparing for further innovation and growth.

Financial Performance and Capital Allocation

• Achieved significant operational improvements: revenue growth from 3% to 8%, EBIT margin from 9.8% to 11.5%, and EPS from -13% to +7%.

• Reduced leverage to within the 3–3.5% target corridor for the first time in seven years, with net debt/EBITDA improving from 3.76x in Q4 2023 to 3.24x in Q3 2024.

• Focused capital allocation on organic growth, disciplined investment, and a progressive dividend policy, with dividend resumption planned.

• Asset sales and operational improvements enabled faster deleveraging than expected.

• Maintains a 32% stake in Fresenius Medical Care as an investment, expecting value creation but not operational involvement.

Business Segment Highlights and Growth Drivers

• Fresenius Kabi: Leading positions in IV generics, fluids, clinical nutrition, and medical technology, with high barriers to entry and stable cash generation.

• Biopharma: Transitioned from investment phase to profitability, with Tyenne (biosimilar for Actemra) first to market in Europe and the U.S., and further launches (Ustekinumab, Denosumab) expected.

• CDMO business (mAbxience) contributing milestone payments and growth, with strong industry partnerships.

• Hospital business (Helios): Number one in Germany and Spain, providing stable, reliable cash flow and supporting group funding.

• Over 900 cell therapy devices in use and #2 globally for plasma collection devices.