Our innovations enable aus to offer products and services that provide high-quality and affordable therapies to critically and chronically ill patients. We make a difference with our international expertise and interdisciplinary collaboration, which help us to optimize these offers.

As a healthcare Group with more than 190,000 employees, Fresenius plays an important role in society. For more than 100 years, our motivation has been to preserve life, promote health, and improve the quality of life for people who are ill.

We aim to provide innovative products and services, and work proactively to enable a growing number of people to have access to high-quality, affordable healthcare. Our common goal is to improve healthcare quality and efficiency. The well-being of patients is always our top priority. It is our point of reference for all our business decisions and inspires us in how we understand our social responsibility, and how to act responsibly.

For Fresenius, economic success is not an end in itself, but a means of continuously investing in medical progress and thus creating added value for society.

Our ethical values go beyond legal requirements. For us, this means acting not only in accordance with the law, but also in accordance with applicable industry codes and our values. We are also guided by the following internationally recognized principles:

• Universal Declaration of Human Rights

• UN Guiding Principles on Business and Human Rights (UNGPs)

• International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work

• OECD Guidelines for Multinational Enterprises

• German Corporate Governance Code

Our value chain

Fresenius operates in more than 60 countries through its subsidiaries, maintains an international distribution network and operates more than 50 production sites. All purchasing processes are controlled by central coordination points in the business segments. Competence teams bundle the needs, conclude framework contracts, and continuously monitor current market and price trends. In addition, they coordinate global procurement for individual production sites or clinics and initiate quality and safety controls for raw materials and procurement goods (see Human Rights).

Supply reliability and quality of care play an important role in an environment characterized by ongoing cost-saving efforts by healthcare providers and by price pressure in the markets. We therefore constantly optimize our purchasing processes, standardize procurement materials, identify new sources of supply, and negotiate the best possible price deals. Maintaining high flexibility while at the same time meeting our strict quality and safety standards is crucial. A broad portfolio of suppliers reduces potential procurement or raw material shortages in both the product and service business (see Procurement management).

Our sustainability organization

 

At Fresenius, the Group Management Board member responsible for Legal, Compliance, Risk Management, ESG, Human Resources and for the business segment Fresenius Vamed (subsequently ESG Board member) has overall responsibility for sustainability.

The Group ESG function acts as a competence center within the Fresenius Group. The function monitors regulatory developments, identifies key issues, and defines priorities and opportunities for the implementation of the ESG strategy. It supports Group-wide implementation and reviews progress as part of the annual reporting. Throughout the year, it aligns repeatedly with all Group functions and the ESG officers in the business segments to consider the respective business models and ensure the feasibility of measures. The Group ESG function is also responsible for internal and external stakeholder communication and, together with the Group Controlling function, for non-financial reporting.

The ESG Steering Committee, which was newly created at the end of 2023, consists of the ESG Board member (Chair), the Group ESG function, defined functions at Group level, and the ESG officers of the business segments. The committee will meet quarterly starting in 2024 and will be tasked with providing information on current developments, deciding on appropriate measures to improve ESG performance, and monitoring the progress of implementation. The measures proposed by the ESG Steering Committee are submitted to the Fresenius Group Management Board for approval by the ESG Board member.

The Management Board and the Supervisory Board review the progress and the results of the sustainability management, which are then published in the separate Group Non-financial Report. The Supervisory Board is supported in this process by the audit performed by the external auditors. The key figures that form part of the remuneration components of the Executive Board are audited with reasonable assurance. The other key figures in the Group Non-financial Report and the report itself are subject to a limited assurance review. The Audit Committee of the Supervisory Board has special responsibility for reviewing the Group Non-financial Report. The Supervisory Board as a whole is also responsible for monitoring Fresenius’ sustainability performance.

 

For more information on this topic see the Non-Financial Report.

In addition, our interactive tool allows you to analyze and graph a variety of key figures of the Fresenius Group and the business segments on an annual basis.

 

The Else Kröner-Fresenius-Stiftung is a non-profit foundation established in 1983 by Else Kröner, who was born as Else Fernau. The foster-daughter of company founder Dr. Eduard Fresenius, she was the longtime owner of the company. When she died in 1988, the foundation became her sole heir. 

Dedicated to the support of medical research and medical-humanitarian development projects, the Else Kröner-Fresenius-Stiftung has so far supported some 2,300 projects with a total value of about €520 million.

The Else Kröner-Fresenius-Stiftung is the major shareholder of Fresenius SE & Co. KGaA. There is no connection between the foundatin’s philanthropic activities and the business activities of the Fresenius health care group. Accredited as non-profit, the Else Kröner-Fresenius-Stiftung is subject to regulatory supervision under the law governing foundations.

Benefactor Else Kröner

The foundation’s benefactor was born as Else Fernau in Frankfurt, Germany on May 15, 1925. After the death of her mother, she was raised in the home of a local pharmacist, Dr. Eduard Fresenius, proprietor of Frankfurt’s Hirsch Pharmacy and founder of the Fresenius company in nearby Bad Homburg. The pharmacist, whose marriage remained childless, raised her like his own daughter; in 1944 she began as a trainee in the Hirsch Pharmacy and decided to study to become a pharmacist. Two years later, before Else Fernau could complete her studies, Dr. Fresenius died and bequeathed her the pharmacy as well as the Fresenius company. The business had been devastated by the war, and had lost most of its workforce.

Disregarding advice that she should decline the legacy, Else Fernau assumed responsibility for the pharmacy and the company when she was only 21. The Fresenius company was heavily indebted, and all but 30 of the original 400 employees had to be let go. She succeeded in saving the company, and along with Dr. Hans Kröner, who later became her husband, rebuilt and significantly expanded Fresenius. In the mid-1960s the couple took important, visionary business decisions that assured the company’s development.

Then followed decades of strong growth, which saw Fresenius become a competitor on the international market and a leader in such specialist areas as infusion solutions and dialysis products. Else Kröner headed the management of Fresenius until 1981, when it was converted into a joint stock company and she became Chairman of the Supervisory Board. She held that post until her death on June 5, 1988.

• Globalization of operating model to leverage expertise, capture growth opportunities and accelerate value creation
• Business operations to be structured in two global operating segments: Care Enablement and Care Delivery
• Reduction of annual cost base of EUR 500 million by 2025 with anticipated one-time investments of around EUR 450-500 million
• First year of net savings expected in 2023 

Fresenius Medical Care continues to execute on its growth strategy 2025 launched in October 2020. The world's leading provider of products and services for individuals with renal diseases today announced the next phase of its transformation program FME25 – the transformation of its operating model – to provide the base for future sustainable growth. With a significantly simplified future structure of two global operating segments – Care Enablement and Care Delivery – Fresenius Medical Care orients its operating model along the relevant future value drivers. With greater cost efficiency and a superior ability to capture additional growth opportunities, the aim of the new, leaner structure is also to mitigate the ongoing negative effects of COVID-19 as well as the challenging macroeconomic environment with inflationary trends. Fresenius Medical Care expects to complete the roll-out of its new global operating model around 2023 and the savings initiative largely completed by 2024. 

Rice Powell, CEO of Fresenius Medical Care, said: “FME25 is about taking our value creation to the next level. Over the past months, we have worked with dedication on our plans for a fundamental transformation of our Company. In this process, I have seen great commitment to making Fresenius Medical Care more agile, leverage expertise, accelerate innovation and further optimize capital allocation. Helen Giza, our CFO, will also assume the role of Chief Transformation Officer and lead the global efforts on FME25. While FME25 will change the way we operate in the future, our new global operating model is deeply grounded in our longstanding vision to improve the quality of outcomes for our patients. I am convinced that we will be able to live up to this joint purpose even better in our new structure and at the same time further strengthen our long-term profitable growth.”

Globalization of Operating Segments and support functions
The new simplified operating model is the continuation of the plan to globalize and simplify as a part of the implementation of the 2025 growth strategy. It is designed to further leverage the advantages of the Company’s vertical integration, to better capture identified growth opportunities, leverage expertise to accelerate value creation, enhance capital allocation, increase transparency both internally and externally, reduce administrative burden as it relates to cost and speed, and to advance a culture of agility, innovation and accountability. 
In the new model the Company will manage its business in two global operating segments, adopting a more centralized approach:

In Care Enablement, Fresenius Medical Care is consolidating its previously decentralized healthcare products business including research and development, manufacturing, supply chain and commercial operations as well as supporting functions, such as regulatory and quality management under a global MedTech umbrella. The products business will be organized along the three treatment modalities that the Company is serving: In-center, Home and Critical Care. This structure has the benefit of reduced organizational complexity and in turn increased accountability and agility in decision making and bringing innovative products to market. Pro-forma, Care Enablement represents around 20% of the Company´s financial year 2020 revenues. 

Fresenius Medical Care’s global healthcare services business will be combined in the Care Delivery segment. In doing so, Fresenius Medical Care aims to leverage its scale, capabilities, technologies and best practices globally and its world-leading expertise in the field of value-based care to address new patient groups in the U.S. and in other geographies. The new globalized structure enables a strategic review of all services markets and an enhancement of the cost structure to deliver on the Company´s sustainable profitable growth aspirations. Pro-forma, Care Delivery represents around 80% of the Company´s financial year 2020 revenues.

The Global Medical Office continues to leverage the vertically integrated approach to achieve the best clinical outcomes for our patients, their families and the payor community by evaluating coordinated data from clinical science research and medical practice on a global basis to improve treatment outcomes.

The new global operating model will enable the further consolidation of General and Administrative functions. A three pillars model of business partnering, centers of excellence and global shared services will be applied. This will allow for reduction of organizational complexity and streamlining processes while driving efficiency via digitalization and standardization. While the globalization of Finance, IT and Procurement is already underway, the Company will apply the same model to Human Resources, Legal and Compliance, which are currently regionalized. 

Sustainable cost reduction by EUR 500 million
Based on the implementation of the new global operating model, Fresenius Medical Care assumes to reduce its annual cost base by EUR 500 million by the end of 2025. 

Helen Giza, CFO and CTO of Fresenius Medical Care, said: “We are excited about the identified value creation opportunity for the Company. Due to the extensive work and progress over the last months, we already have clear line of sight into EUR 400-450 million with further initiatives under review.” 

Around 50% of these savings are expected to be realized by 2023. By the end of 2023 around 80% of the anticipated one-time investments in FME25, amounting to approximately EUR 450-500 million, are expected to be made. The investments will be treated as a special item. The Company thus expects to reach positive net savings by the end of 2023.

Fresenius Medical Care anticipates reducing up to 5,000 full-time equivalents worldwide as part of the FME25 program. The Company is committed to implementing necessary changes in a socially responsible way, and to following applicable consultation procedures with works councils and other workplace representative bodies in good faith. 

Conference call
Fresenius Medical Care will host a two hours conference call to discuss the results of the third quarter and first nine months of 2021 on November 2, 2021 at 3:30 p.m. CET / 10:30 a.m. EDT. Please note that this will be an extended call, as the Company will additionally provide an update on the FME25 transformation program. Details will be available on the Fresenius Medical Care website www.freseniusmedicalcare.com in the “Investors” section. A replay will be available shortly after the call.