Fresenius (FRE) Berenberg & Goldman Sachs 9th German Corporate Conference presentation summary

Business overview and strategy

• Global healthcare leader with €35.4bn sales in 2019, operating in 100+ countries and employing over 302,000 people.

• Diversified portfolio: dialysis, hospital supplies, hospital operations, and healthcare projects/services.

• Focus on innovation, quality, internationalization, and sustainable value creation.

• Core mission: deliver better medicine and healthcare services to more people.

• Strong organic growth across all business segments, with 5% group CAGR (2015–2019).

Financial performance and outlook

• Q2 2020 sales grew 2% to €8,920m; EBIT stable at €1,123m; net income down 13% to €410m.

• Cash flow remains strong, with Q2 2020 free cash flow at €2,103m and high financial flexibility.

• FY 2020 guidance: sales growth of 3–6%, net income growth of -4% to +1% (including COVID-19 effects).

• Proven track record of deleveraging, maintaining net debt/EBITDA target of 3.0–3.5x.

• 27th consecutive dividend increase in 2019, with a payout ratio of 24%.

Segment performance and COVID-19 impact

• Medical Care: +4% organic sales growth, +25% EBIT growth in Q2 2020.

• Kabi: +2% organic sales growth, -5% EBIT; recovery in China, headwinds elsewhere due to postponed elective treatments.

• Helios: -2% organic sales, -29% EBIT; Germany stable, Spain hit hard by COVID-19, gradual recovery in elective procedures.

• Vamed: -1% organic sales, -159% EBIT; project delays and service disruptions due to pandemic.

• COVID-19 estimated to reduce Q2/H1 2020 sales by 4–5% and net income by 13–17%.