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The healthcare group Fresenius will have a revised Management team going forward. Dr. Ernst Wastler, previously responsible for Fresenius Vamed, will retire as Chairman of the VAMED Management Board and consequently from the Fresenius Management Board upon reaching retirement age on July 18, 2023. Dr. Klaus Schuster and Frank-Michael Frede will be appointed to the VAMED Management Board. Dr. Klaus Schuster will assume the new role of Spokesman of the VAMED Management Board but will not be represented on the Fresenius Management Board. Dr. Michael Moser, a new member of the Fresenius Management Board, will be responsible for Fresenius Vamed within the Fresenius Board.
Following the successful deconsolidation of Fresenius Medical Care, Helen Giza will also step down from the Fresenius Management Board. The #FutureFresenius strategy, with its realignment of business segments into operating and investment companies, is also reflected in the composition of the Fresenius Management Board.
"I would like to thank Dr. Wastler for his many years of highly dedicated work on the Fresenius Board," said Wolfgang Kirsch, Chairman of the Supervisory Board of Fresenius. "The leaner Fresenius Board in the future also takes into account the changes on the path to #FutureFresenius that Michael Sen and the Management Board team are successfully and consistently driving forward."
Dr. Klaus Schuster joined VAMED Management and Service GmbH as Chief Operating Officer (COO) in 2020. Schuster is a medical doctor and worked as a physician at Landesklinikum St. Pölten for ten years. He studied and obtained his doctorate at the Medical University of Vienna and holds an MBA in Health Care Administration from Danube University Krems.
Also appointed to the VAMED Board as of July 1, 2023, is Frank-Michael Frede, CEO of VAMED Deutschland Holding since 2022.
Gottfried Koos' (67) tenure on the VAMED Board will end on June 30, 2023. The four-member VAMED Board will continue to include the two current members, Andrea Raffaseder and Andreas Wortmann. Andreas Wortmann, Chief Financial Officer, will additionally take on the newly created role of Chief Transformation Officer.
Strengthened control function
The control function of the VAMED Supervisory Board will be strengthened. Firstly, it will be reduced from eight to six members. Commercial Councillor Karl Samstag, previously Deputy Chairman of the VAMED AG Supervisory Board and retired CEO of Austria Creditanstalt AG, as well as Dr. Robert Hink, former Secretary General of the Austrian Association of Municipalities, will resign from their positions with effect from the date of the next ordinary Supervisory Board meeting on July 12, 2023.
Dr. Dieter Schenk, Deputy Chairman of the Supervisory Board of Fresenius Management SE, will continue to lead the VAMED Supervisory Board. Sara Hennicken, CFO of Fresenius and a member of the VAMED Supervisory Board since December 2022, will remain a member of this Board and is due to be elected Deputy Chairman. Andreas Schmidradner, Advisor to the Management Board of B&C Industrieholding GmbH, will also continue to be a member of the Supervisory Board. Dr. Michael Moser, a future member of the Fresenius Management Board, was newly elected to the VAMED Supervisory Board with effect from July 12, 2023. Together with two employee representatives, Sara Hennicken, Dr. Dieter Schenk, Andreas Schmidradner and Dr. Michael Moser will form the six-member VAMED Supervisory Board going forward. Additionally, an Audit Committee consisting of Sara Hennicken as Chair, Michael Moser as Deputy Chair, and potentially one employee representative will be established.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
The healthcare group Fresenius will have a revised Management team going forward. Dr. Ernst Wastler, previously responsible for Fresenius Vamed, will retire as Chairman of the VAMED Management Board and consequently from the Fresenius Management Board upon reaching retirement age on July 18, 2023. Dr. Klaus Schuster and Frank-Michael Frede will be appointed to the VAMED Management Board. Dr. Klaus Schuster will assume the new role of Spokesman of the VAMED Management Board but will not be represented on the Fresenius Management Board. Dr. Michael Moser, a new member of the Fresenius Management Board, will be responsible for Fresenius Vamed within the Fresenius Board.
Following the successful deconsolidation of Fresenius Medical Care, Helen Giza will also step down from the Fresenius Management Board. The #FutureFresenius strategy, with its realignment of business segments into operating and investment companies, is also reflected in the composition of the Fresenius Management Board.
"I would like to thank Dr. Wastler for his many years of highly dedicated work on the Fresenius Board," said Wolfgang Kirsch, Chairman of the Supervisory Board of Fresenius. "The leaner Fresenius Board in the future also takes into account the changes on the path to #FutureFresenius that Michael Sen and the Management Board team are successfully and consistently driving forward."
Dr. Klaus Schuster joined VAMED Management and Service GmbH as Chief Operating Officer (COO) in 2020. Schuster is a medical doctor and worked as a physician at Landesklinikum St. Pölten for ten years. He studied and obtained his doctorate at the Medical University of Vienna and holds an MBA in Health Care Administration from Danube University Krems.
Also appointed to the VAMED Board as of July 1, 2023, is Frank-Michael Frede, CEO of VAMED Deutschland Holding since 2022.
Gottfried Koos' (67) tenure on the VAMED Board will end on June 30, 2023. The four-member VAMED Board will continue to include the two current members, Andrea Raffaseder and Andreas Wortmann. Andreas Wortmann, Chief Financial Officer, will additionally take on the newly created role of Chief Transformation Officer.
Strengthened control function
The control function of the VAMED Supervisory Board will be strengthened. Firstly, it will be reduced from eight to six members. Commercial Councillor Karl Samstag, previously Deputy Chairman of the VAMED AG Supervisory Board and retired CEO of Austria Creditanstalt AG, as well as Dr. Robert Hink, former Secretary General of the Austrian Association of Municipalities, will resign from their positions with effect from the date of the next ordinary Supervisory Board meeting on July 12, 2023.
Dr. Dieter Schenk, Deputy Chairman of the Supervisory Board of Fresenius Management SE, will continue to lead the VAMED Supervisory Board. Sara Hennicken, CFO of Fresenius and a member of the VAMED Supervisory Board since December 2022, will remain a member of this Board and is due to be elected Deputy Chairman. Andreas Schmidradner, Advisor to the Management Board of B&C Industrieholding GmbH, will also continue to be a member of the Supervisory Board. Dr. Michael Moser, a future member of the Fresenius Management Board, was newly elected to the VAMED Supervisory Board with effect from July 12, 2023. Together with two employee representatives, Sara Hennicken, Dr. Dieter Schenk, Andreas Schmidradner and Dr. Michael Moser will form the six-member VAMED Supervisory Board going forward. Additionally, an Audit Committee consisting of Sara Hennicken as Chair, Michael Moser as Deputy Chair, and potentially one employee representative will be established.
Please also read VAMED's press release. You will find it in the download area on the right, please use the second download link.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius has reached an important milestone in its IT transformation. The company successfully migrated its key SAP systems into the cloud with RISE with SAP, a comprehensive set of packages provided by SAP that helps companies transform into intelligent enterprises. This strategic move laid the foundation for future innovation targets and enables Fresenius to improve scalability, enhance application security and drive the digitalization of its global business processes.
The migration encompassed a wide range of systems, including e.g. ERP (Enterprise Resource Planning) systems for core business processes in finance, manufacturing, supply chain and procurement as well as CRM (Customer Relationship Management) systems, among others.
“The SAP RISE migration is accelerating our #FutureFresenius journey. The ability to scale our IT landscape more flexibly enables us to gain efficiency and to adapt to changes faster”, said Michael Sen, CEO Fresenius. “Digitizing our organization and the healthcare industry requires scalable platforms and working in ecosystems with internal and external partners. Digitization will be a key enabler for our business to advance patient care.”
“We are excited to partner with Fresenius on their digital transformation journey with RISE with SAP,” said Christian Klein, CEO and Member of the Executive Board of SAP SE. “Our solutions will empower Fresenius to streamline operations, enhance efficiency, and deliver even more exceptional value to its patients and customers.”
The migration project involved extensive collaboration between Fresenius and SAP where 29 system landscapes containing 134 systems have been migrated into the cloud smoothly and in record time of less than 15 months. The project's completion sets the stage for Fresenius to leverage the full potential of the latest SAP technologies, including SAP S/4HANA Cloud, to accelerate innovation and deliver exceptional value to the Fresenius Group.
The migration has resulted in improved security and resilience of all SAP systems. It allows the company to identify and resolve issues before they impact the business through delays or outages. The migrated systems show better performance in general.
“We have a long and successful history of working with SAP for 30 years now. We're thrilled with the outcome of the cloud migration. It is proof that all the hard work and close collaboration on challenges has paid off. The dedication, expertise, and collaboration of everyone involved has been instrumental in achieving this significant milestone. As we move forward, we're confident that the cloud transformation will empower our organization to innovate and excel in today's competitive healthcare market”, said Ingo Elfering, Fresenius Group CIO. “Migrating our core SAP databases to the cloud with RISE with SAP will also provide a secure and stable platform for our future SAP S/4HANA journey”, he added.
SAP S/4HANA is an integrated enterprise resource planning (ERP) with a focus on intelligent automation and easy-to-use interfaces, it helps companies achieve digital transformation by providing comprehensive solutions for finance, logistics, customer service, supply chain and more.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts.
Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius has signed the German "Charta der Vielfalt" (Diversity Charter). The healthcare group is thus taking a strong stance for diversity and inclusion in its own company. The Diversity Charter is an initiative to promote diversity in companies and institutions under the patronage of German Chancellor Olaf Scholz. The aim of the initiative is to advance the recognition, appreciation, and inclusion of diversity in the working world in Germany. Organizations that sign the charter are working to create a prejudice-free environment in which all employees are valued - regardless of age, ethnic origin and nationality, gender and gender identity, physical and mental abilities, religion and worldview, sexual orientation, and social background.
"Diversity is a strength. People from more than 140 different nations work at Fresenius worldwide, all with different backgrounds and their own history," said Sebastian Biedenkopf, Fresenius Management Board member for Human Resources (Labor Relations Director), Risk Management and Legal. "By signing the Diversity Charter, we commit to creating a prejudice-free working environment where everyone can develop their potential."
Various measures in Fresenius' different business segments help promote diversity, equality, and inclusion. For example, Fresenius offers an education program specifically for women in leadership positions, where participants can also build a network. Furthermore, Helios Kliniken in Germany specifically trains employees to become integration managers, who support foreign colleagues on their arrival in Germany in dealing with authorities and in other situations.
In addition, the Group has various queer communities with contact points and regular meetings, numerous employee networks such as the Women's Initiative in Europe and the Employee Impact Group African Voices, and gender equality training for managers and employees. More information on diversity in practice at Fresenius can be found in the Sustainability Report.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
The information and documents contained on the following pages of this website are for information purposes only. These materials do neither constitute an offer nor an invitation to subscribe to or to purchase securities, nor any investment advice or service, and are not meant to serve as a basis for any kind of obligation, contractual or otherwise. Securities may not be offered or sold in the United States of America (“US”) absent registration under the US Securities Act of 1933, as amended, or an exemption from registration. The securities described on the following pages are not offered for sale in the US or to "US persons" (as defined in Regulation S under the US Securities Act of 1933, as amended).
THE FOLLOWING INFORMATION AND DOCUMENTS ARE NOT DIRECTED AT AND ARE NOT INTENDED FOR USE BY (I) PERSONS WHO ARE RESIDENTS OF OR LOCATED IN THE US, CANADA, JAPAN OR AUSTRALIA OR WHO ARE US PERSONS (AS DEFINED IN REGULATION S UNDER THE US SECURITIES ACT OF 1933, AS AMENDED), OR (II) PERSONS IN ANY OTHER JURISDICTION WHERE THE COMMUNICATION OR RECEIPT OF SUCH INFORMATION IS RESTRICTED IN SUCH A WAY THAT PROVIDES THAT SUCH PERSONS SHALL NOT RECEIVE IT. SUCH PERSONS, OR PERSONS ACTING FOR THE BENEFIT OF ANY SUCH PERSONS, ARE NOT PERMITTED TO VISIT THE FOLLOWING PAGES OF THE WEBSITE.
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The healthcare group Fresenius has issued its first sustainability-linked Schuldschein loan with a volume of 850 million euros. It consists of 6 tranches with maturities of 3, 5 and 7 years, each offered with fixed and variable interest rates.
The margin of the Schuldschein loan is linked to the achievement of sustainability targets from two areas that are core to Fresenius as a healthcare group: treatment quality and product safety.
Sara Hennicken, CFO of Fresenius: “Sustainability is becoming increasingly important in financing. We are taking this into account with our first sustainable Schuldschein loan. With this transaction, we are diversifying our investor base and further strengthening our liquidity.”
The high investor demand significantly exceeded the originally intended volume of 300 million euros. This made it possible to set the pricing for each tranche at the tight end of the marketing range. In total, more than 50 institutional investors from Europe and Asia participated in the transaction.
The proceeds from the Schuldschein loan will be used for general corporate purposes, including the refinancing of existing financial liabilities. Settlement is scheduled for May 30, 2023.
The transaction was arranged by DZ BANK AG, Landesbank Hessen-Thüringen Girozentrale and ING. ING has acted as Sustainability Structuring Advisor to this transaction.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The financial instruments referred to herein may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the financial instruments referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the financial instruments referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the financial instruments in the United States.
This announcement is a general information and not a prospectus.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
This announcement contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius SE & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this announcement.
The information and documents contained on the following pages of this website are for information purposes only. These materials do neither constitute an offer nor an invitation to subscribe to or to purchase securities, nor any investment advice or service, and are not meant to serve as a basis for any kind of obligation, contractual or otherwise. Securities may not be offered or sold in the United States of America (“US”) absent registration under the US Securities Act of 1933, as amended, or an exemption from registration. The securities described on the following pages are not offered for sale in the US or to "US persons" (as defined in Regulation S under the US Securities Act of 1933, as amended).
THE FOLLOWING INFORMATION AND DOCUMENTS ARE NOT DIRECTED AT AND ARE NOT INTENDED FOR USE BY (I) PERSONS WHO ARE RESIDENTS OF OR LOCATED IN THE US, CANADA, JAPAN OR AUSTRALIA OR WHO ARE US PERSONS (AS DEFINED IN REGULATION S UNDER THE US SECURITIES ACT OF 1933, AS AMENDED), OR (II) PERSONS IN ANY OTHER JURISDICTION WHERE THE COMMUNICATION OR RECEIPT OF SUCH INFORMATION IS RESTRICTED IN SUCH A WAY THAT PROVIDES THAT SUCH PERSONS SHALL NOT RECEIVE IT. SUCH PERSONS, OR PERSONS ACTING FOR THE BENEFIT OF ANY SUCH PERSONS, ARE NOT PERMITTED TO VISIT THE FOLLOWING PAGES OF THE WEBSITE.
To visit the following parts of this website you must confirm that
(i) you are not a resident of the United States of America, Canada, Japan or Australia or a "US person" (as defined in Regulation S under the US Securities Act of 1933, as amended),
(ii) you are not a person to whom the communication of the information contained on the website is restricted,
(iii) you will not distribute any of the information and documents contained thereon to any such person, and
(iv) you are not acting for the benefit of any such person.
By clicking on the "Accept" button below, you will be deemed to have made this confirmation.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.
The healthcare group Fresenius has issued its first sustainability-linked Schuldschein loan with a volume of 850 million euros. It consists of 6 tranches with maturities of 3, 5 and 7 years, each offered with fixed and variable interest rates.
The margin of the Schuldschein loan is linked to the achievement of sustainability targets from two areas that are core to Fresenius as a healthcare group: treatment quality and product safety.
Sara Hennicken, CFO of Fresenius: “Sustainability is becoming increasingly important in financing. We are taking this into account with our first sustainable Schuldschein loan. With this transaction, we are diversifying our investor base and further strengthening our liquidity.”
The high investor demand significantly exceeded the originally intended volume of 300 million euros. This made it possible to set the pricing for each tranche at the tight end of the marketing range. In total, more than 50 institutional investors from Europe and Asia participated in the transaction.
The proceeds from the Schuldschein loan will be used for general corporate purposes, including the refinancing of existing financial liabilities. Settlement is scheduled for May 30, 2023.
The transaction was arranged by DZ BANK AG, Landesbank Hessen-Thüringen Girozentrale and ING. ING has acted as Sustainability Structuring Advisor to this transaction.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The financial instruments referred to herein may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the financial instruments referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the financial instruments referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the financial instruments in the United States.
This announcement is a general information and not a prospectus.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
This announcement contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius SE & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this announcement.
The health care group Fresenius is making good progress with its realignment. “We have worked hard in recent months. We have set fundamental things in motion. Today, Fresenius has a clear focus and a clear strategic direction,” Fresenius CEO Michael Sen said in his speech at the Company's virtual annual general meeting today. Changes cannot be expected overnight , he added. But Fresenius is making progress, he said. “Overall, we started promisingly into the new year. The figures for the first quarter confirm: We are heading in the right direction.” The task now, he said, is to continuously develop the portfolio and open new growth areas.
Fresenius is focusing on its two Operating Companies Fresenius Kabi and Fresenius Helios. They are both geared to therapies and hold leading positions in attractive growth markets. With (Bio)Pharma, MedTech and Care Provision, they cover the three central growth platforms in the therapy sector. “That makes us unique. No other company does it like this,” Sen said. Fresenius will continue this path, he added. He confirmed the outlook for 2023.
In his speech, Sen also emphasized the great importance of Fresenius to society: “We are a company that does not have to search for its purpose. We work every day to improve people's health. Advancing Patient Care – that is our mission. Fresenius occupies a key position at the heart of health care.” It was Michael Sen's first Annual General Meeting as CEO of Fresenius.
Shareholders approved with a large majority of 96.71 percent the proposal of the General Partner and the Supervisory Board to maintain the dividend at €0.92 per share.
The shareholders also approved with a large majority of 89.19 percent the Compensation Report for the 2022 business year.
With a majority of 93.01 percent, the shareholders approved an update to the compensation system for members of the Management Board. In particular, the Compensation System 2023+ provides for a new plan for long-term variable compensation that takes even greater account of promoting the long-term and sustainable development of the Company. In addition, the aspect of sustainability has been anchored even more strongly in the long-term variable compensation.
The shareholders authorized the Company with a majority of 87.64 percent to continue to hold the Annual General Meeting in virtual format in the next two years if required.
Shareholder majorities of 93.53 and 89.19 percent, respectively, approved the actions of the Management and Supervisory Boards in 2022.
At the Annual General Meeting of Fresenius SE & Co. KGaA, 72.57 percent of the subscribed capital was represented.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
If no timeframe is specified, information refers to Q1/2023.
1 According to FY/23 guidance, excluding Provider Relief Fund (PRF) at Fresenius Medical Care
2 Before special items, Q1/22 restated following remeasurement Humacyte investment
3 Before special items For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
“With a simplified Group structure, improved performance, and a clear focus, Fresenius’s course is set. Productivity measures are gaining traction and we’ve started the new year with good growth momentum,” said Michael Sen, Fresenius CEO. “Our Operating Companies Fresenius Kabi and Fresenius Helios both had strong first quarter performance. The deconsolidation of Fresenius Medical Care is on track and the turnaround is also progressing. We want to accelerate this momentum. This requires contributions from all business segments.”
Deconsolidation of Fresenius Medical Care
The deconsolidation of Fresenius Medical Care is moving ahead as planned. The separation concept has been finalized and the relevant agreements are currently being drafted. The date of the Extraordinary General Meeting (EGM) of Fresenius Medical Care has been scheduled for July 14, 2023. Subject to the necessary shareholder approvals and the registration with the commercial register, the conversion is expected to become effective latest by the end of the 2023 financial year.
Moreover, starting in Q1/23, selected financials of the Fresenius Group are reported excluding Fresenius Medical Care to better reflect #FutureFresenius.
Structural productivity improvements
Under the cost and efficiency program, ~€130 million of structural cost savings at EBIT level were already achieved in Q1/23, that is around 25% of the planned savings for 2023. In the same period, one-time costs of ~€50 million incurred to achieve these savings. These are treated as special items. Thereof, Fresenius Medical Care invested €26 million and realized ~€60 million of cost savings.
FY/23 Group guidance confirmed
For 2023, Fresenius expects Group organic revenue1 to grow in a low- to mid-single-digit percentage range. Group constant currency EBIT2 is expected to remain broadly flat or decline up to a high-single-digit percentage rate.
Excluding Fresenius Medical Care constant currency EBIT3 is expected to remain broadly flat or decline up to a mid-single-digit percentage rate.
Fresenius expects the net debt/EBITDA4 ratio to be slightly above the 2023 level by the end of 2022 (December 31, 2022: 3.65x5), depending on divestment activities. The self-imposed target corridor for the leverage ratio remains unchanged at 3.0x to 3.5x.
1 FY/22 base: €40,840 million
2 FY/22 base: €3,727 million, before special items, excl. PRF; FY/23: before special items
3 FY/22 base: €2,187 million, before special items; FY/23: before special items
4 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; excluding further potential acquisitions/divestitures; before special items; including lease liabilities
5 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; before special items; including lease liabilities
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Assumptions for guidance FY/23
For 2023, Fresenius assumes no further escalations of geopolitical tensions and challenges from COVID-19, and supply chain constraints continuing to ease. Fresenius expects that the general cost inflation and labor shortages will have a more significant negative effect on its business than in 2022 due to the annualization effect of cost increases occurred in H2/2022.
Fresenius will continue to closely monitor the potential further consequences of the overall heightened volatility and muted visibility, including balance sheet valuations.
For Fresenius Medical Care’s contribution to the Group’s financial figures, the assumptions for Fresenius Medical Care’s FY/23 guidance are also fully applicable to Fresenius Group’s FY/23 guidance. In 2022, Fresenius Medical Care’s EBIT was supported by €277 million of Provider Relief Funding from the U.S. government (at current currency). There is no additional governmental support assumed for 2023.
All of these assumptions are subject to considerable uncertainty.
5% revenue increase in constant currency
Group revenue increased by 5% (5% in constant currency) to €10,225 million (Q1/22: €9,720 million). Organic growth was 5%. Acquisitions/divestitures contributed net 0% to growth. In total, currency translation had no effect on revenue growth. Excluding Fresenius Medical Care, Group revenue increased by 7% (7% in constant currency) to €5,546 million (Q1/22: €5,192 million).
10 %1 EBIT2 decline in constant currency – in line with expectations
Group EBITDA before special items decreased by 5% (-6% in constant currency) to €1,585 million (Q1/222: €1,662 million). Reported Group EBITDA was €1,491 million (Q1/22: €1,595 million).
Group EBIT before special items decreased by 9% (-11%/-10%1 in constant currency) to €908 million (Q1/222: €1,000 million). The decrease was mainly driven by the expected annualization of inflationary effects such as cost increases for personnel, material, logistics, and energy. This is due to the fact that H2/2022 showed stronger cost inflation compared to H1/2022. Moreover, a very negative performance at Fresenius Vamed weighed on Group EBIT. The EBIT margin before special items was 8.9% (Q1/222: 10.3%). Reported Group EBIT was €787 million (Q1/22: €902 million). Excluding Fresenius Medical Care, Group EBIT before special items decreased by 7% (-7% in constant currency) to €554 million (Q1/222: €593 million). The EBIT margin excluding Fresenius Medical Care before special items was 10.0% (Q1/222: 11.4%).
Group net interest before special items was -€170 million (Q1/222: -€119 million) mainly due to financing activities in a higher interest rate environment. Reported Group net interest was -€170 million (Q1/22: -€118 million).
Group tax rate before special items increased to 24.9% (Q1/222: 22.7%) mainly due to an increase in the proportionate share of non-tax-deductible expenses compared to taxable income at Fresenius Medical Care as well as the non-recognition of increased tax loss carryforwards. Reported Group tax rate was 25.0% (Q1/22: 23.6%).
Noncontrolling interests before special items were -€165 million (Q1/222: -€218 million) of which 93% were attributable to the noncontrolling interests in Fresenius Medical Care. Reported noncontrolling interests were -€117 million (Q1/22: -€186 million).
1 According to FY/23 guidance, excluding Provider Relief Fund (PRF) at Fresenius Medical Care
2 Before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Group net income1 before special items decreased by 16% (-17% in constant currency) to €389 million (Q1/222: €463 million). The decrease was driven by cost inflation and the negative earnings development at Fresenius Vamed. Moreover, rising interest costs and a higher tax rate weighed on the net income development. Reported Group net income1 before special items decreased to €346 million (Q1/22: €413 million). Excluding Fresenius Medical Care, Group net income1 before special items decreased by 14% (-16% in constant currency) to €341 million (Q1/222: €397 million).
Earnings per share1 before special items decreased by 17% (-18% in constant currency) to €0.69 (Q1/222: €0.83). Reported earnings per share1 were €0.61 (Q1/22: €0.74).
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA
2 Before special items
Investments
Spending on property, plant and equipment was €353 million corresponding to 3% of revenue (Q1/22: €338 million; 3% of revenue). These investments served primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Excluding Fresenius Medical Care, spending on property, plant and equipment was €211 million corresponding to 4% of revenue (Q1/22: €176 million; 3% of revenue).
Total acquisition spending was €68 million (Q1/22: €162 million) mainly for investments in debt instruments and the purchase of dialysis clinics.at Fresenius Medical Care. Excluding Fresenius Medical Care, total acquisition spending was €18 million (Q1/22: €79 million).
Cash flow development
Group operating cash flow increased to €175 million (Q1/22: €101 million) driven by the governmental support on energy costs at Fresenius Helios in Germany. Significantly higher working capital at Fresenius Kabi in particular receivables and inventory weighed on cash flow. Furthermore, the earnings development at Fresenius Vamed had a negative impact. The first quarter is traditionally a softer cash flow quarter due to phasing effects with catch-up effects over the course of the year. Group operating cash flow margin was 1.7% (Q1/22: 1.0%). Free cash flow before acquisitions and dividends increased to -€177 million (Q1/22: -€255 million). Free cash flow after acquisitions and dividends increased to -€281 million (Q1/22: -€403 million).
The cash conversion rate (CCR), which is defined as the ratio of adjusted free cash flow1 to EBIT before special items, was 0.3 (LTM: 1.1). As the first quarter is traditionally a softer cash flow quarter due to phasing effects a catch-up over the course of the year is expected.
1 Cash flow before acquisitions and dividends; before interest, tax, and special items
Solid balance sheet structure
Group total assets remained nearly unchanged compared to FY/22 (1% in constant currency) at €76,553 million (Dec. 31, 2022: €76,415 million) given the expansion of business activities which, however, was offset by currency translation effects. Current assets increased by 5% (6% in constant currency) to €19,102 million (Dec. 31, 2022: €18,279 million), mainly driven by the increase of trade account receivables. Non-current assets decreased by 1% (0% in constant currency) to €57,451 million (Dec. 31, 2022: €58,136 million).
Total shareholders’ equity decreased by 0% (2% in constant currency) to €32,173 million (Dec. 31, 2022: €32,218 million). The equity ratio was 42.0% (Dec. 31, 2022: 42.2%).
Group debt increased by 0% (1% in constant currency) to €27,765 million (Dec. 31, 2022: € 27,763 million). Group net debt increased by 2% (2% in constant currency) to € 25,444 million (Dec. 31, 2022: € 25,014 million).
As of March 31, 2023, the net debt/EBITDA ratio was 3.79x2,3 (Dec. 31, 2022: 3.65x1,2) mainly driven by lower EBITDA contribution and higher net debt. Excluding Fresenius Medical Care, the net debt/EBITDA ratio was 3.96x1,2 (Dec. 31, 2022: 3.80x1,2).
In Q1/23, ROIC was 4.8% due to the lower EBIT (Q4/22: 5.1%). Excluding Fresenius Medical Care, the ROIC was 5.2% (Q4/22: 5.6%).
1 Cash flow before acquisitions and dividends; before interest, tax, and special items
2 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures
3 Before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Business Segments – Operating Companies
Fresenius Kabi
Fresenius Kabi specializes in products for the therapy and care of critically and chronically ill patients. The portfolio includes biopharmaceuticals, clinical nutrition, MedTech products, intravenously administered generic drugs (generic IV drugs), and IV fluids.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Revenue increased by 8% (8% in constant currency) to €1,991 million (Q1/22: €1,847 million) mainly driven by the strong business development of all growth vectors. Organic growth was 7%.
Revenue in MedTech increased by 11% (organic growth: 9%) to €378 million (Q1/22: €342 million) mainly driven by the good business development in Latin America.
Revenue in Nutrition increased by 4% (organic growth: 8%) to €602 million (Q1/22: €577 million) mainly driven by the good business development in Latin America and Europe.
Revenue in Biopharma increased by 207% (organic growth: 57%) to €71 million (Q1/22: €23 million) mainly driven by the good business development in Latin America.
Revenue of the Growth Vectors (MedTech, Nutrition and Biopharma) increased by 12% (organic growth: 10%) to €1,051 million (Q1/22: €942 million).
Revenue in the Pharma (IV Drugs & Fluids) business increased by 4% (organic growth: 3%) to €940 million (Q1/22: €905 million). The good business development in Europe and North America was dampened by offsetting effects in China.
EBIT1 decreased by 1% (-4% in constant currency) to €289 million (Q1/22: €293 million) due to the annualization of cost inflation effects. EBIT margin1 was 14.5% (Q1/22: 15.9%) and thus within the structural EBIT margin band. The positive sequential development is driven by the well progressing cost savings program as well as targeted pricing initiatives.
EBIT1 of the Growth Vectors (MedTech, Nutrition and Biopharma) decreased by 14% (-17% in constant currency) to €96 million (Q1/22: €112 million) due to the annualization of cost inflation effects. EBIT1 margin was 9.2% (Q1/22: 11.9%).
EBIT1 in the Pharma (IV Drugs & Fluids) business increased by 7% (4% in constant currency) to €197 million (Q1/22: €185 million) due to positive development in the North American region. EBIT1 margin was 21.0% (Q1/22: 20.4%).
Net income1,2 decreased by 5% (-7% in constant currency) to €191 million (Q1/22: €201 million).
Operating cash flow decreased to €21 million (Q1/22: €133 million) with a margin of 1.1% (Q1/22: 7.2%) mainly driven by phasing effects and working capital build-ups, in particular higher inventories.
For FY/23, Fresenius Kabi expects organic revenue3 growth in a low- to mid-single-digit percentage range. The EBIT margin4 is expected to be around one percentage point (pp) below the structural margin band of 14% to 17%.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA.
3 FY/22 base: €7,850 million
4 FY/22 base: EBIT margin: 13.8%, before special items; FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Fresenius Helios
Fresenius Helios is Europe's leading private health care provider. The company comprises Helios Germany, Helios Spain and Helios Fertility. Helios Germany operates 87 hospitals, around 240 outpatient centers, 22 occupational health centers and 6 prevention centers. Helios Spain operates 50 hospitals, around 100 outpatient centers and around 300 occupational risk prevention centers. In addition, the company is active in Latin America with 8 hospitals and as a provider of medical diagnostics. Helios Fertility offers a wide spectrum of state-of-the-art services in the field of fertility treatments.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Revenue increased by 5% (5% in constant currency) to €3,066 million (Q1/22: €2,931 million). Organic growth was 5%. Acquisitions contributed 0% to revenue growth.
Revenue of Helios Germany increased by 3% (organic growth: 3%) to €1,828 million (Q1/22: €1,783 million), mainly driven by increasing admissions and positive mix effects.
Revenue of Helios Spain increased by 7% (9% in constant currency) to €1,170 million (Q1/22: €1,089 million). Organic growth of 8% was driven by ongoing patient demand. The clinics in Latin America also showed a good performance.
Revenue of Helios Fertility increased by 16% (18% in constant currency) to €66 million (Q1/22: €57 million) as patients are returning to demand fertility treatments.
EBIT1 increased by 2% (2% in constant currency) to €311 million (Q1/22: €306 million) with an EBIT margin1 of 10.1% (Q1/22: 10.4%).
EBIT1 of Helios Germany increased despite cost inflation by 1% to €155 million (Q1/22: €154 million) with an EBIT margin1 of 8.5% (Q1/22: 8.6%).
EBIT1 of Helios Spain increased due to the strong revenue growth and despite cost inflation by 3% (4% in constant currency) to €157 million (Q1/22: €153 million). The EBIT margin1 was 13.4% (Q1/22: 14.0%).
EBIT1 of Helios Fertility was €4 million (Q1/22: €4 million) with an EBIT margin1 of 6.1% (Q1/22: 7.0%).
Net income1,2 decreased by 3% (-2% in constant currency) to €190 million (Q1/22: €195 million).
Operating cash flow increased to €108 million (Q1/22: -€136 million) mainly due to governmental support measures to mitigate higher energy costs in Germany and an improved working capital management. The operating cash flow margin was 3.5% (Q1/22: -4.6%).
For FY/23, Fresenius Helios expects organic revenue3 growth in a mid-single-digit percentage range. The EBIT margin4 is expected to be within the structural margin band of 9% to 11%.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
3 FY/22 base: €11,716 million
4 FY/22 base: EBIT margin: 10.1%, before special items, FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Business Segments – Investment Companies
Fresenius Medical Care
(Financial data according to Fresenius Medical Care press release)
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. As of March 31, 2023, Fresenius Medical Care was treating approximately 343,000 patients in 4,060 dialysis clinics. Dialyzers and dialysis machines are among the most important product lines. In addition, Fresenius Medical Care offers dialysis-related services.
Revenue increased by 3% to €4,704 million (+2% in constant currency, organic: +2%).
EBIT decreased by 25% to €261 million (-28% in constant currency), resulting in a margin of 5.5% (Q1/22: 7.6%). EBIT excluding special items and U.S. Provider Relief Funding (PRF) decreased by 9% to €354 million (-13% in constant currency), resulting in a margin of 7.5% (Q1/22: 8.6%).
Net income2 decreased by 45% to €86 million (-47% in constant currency). Excluding special items and PRF, net income decreased by 22% to €154 million ( 24% in constant currency).
In the first quarter, Fresenius Medical Care generated €143 million of operating cash flow (Q1/22: €159 million), resulting in a margin of 3.0% (Q1/22: 3.5%). The reduction was mainly due to the decrease in net income.
1 Before special items
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Based on the results for the first quarter, Fresenius Medical Care confirms its financial targets for 2023. Fresenius Medical Care expects for 2023 revenue1 to grow at a low to mid-single digit percentage rate and EBIT2 to remain flat or decline by up to a high-single digit percentage rate3.
1 FY/22 base: €19,398 million
2 FY/22 base: €1,540 million
3 Revenue and EBIT, as referred to in the outlook, are both on a constant currency basis and excluding special items. Special items will be provided as separate KPI (“Revenue excluding special items”, “EBIT excluding special items”) to capture effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. These items are excluded to ensure comparability of the figures presented with the Company’s financial targets which have been defined excluding special items.
For FY 2022, special items included costs related to the FME25 program, the impact of the war in Ukraine, the impact of hyperinflation in Turkiye, the Humacyte investment remeasurement, and the net gain related to InterWell Health. Additionally, FY 2022 basis for Outlook 2023 and 2025 was adjusted for Provider Relief Funding.
For FY 2023, special items include costs related to the FME25 program, the Humacyte investment remeasurement, the costs associated with the legal conversion and effects from legacy portfolio optimization.
For further information, please see Fresenius Medical Care’s press release at www.freseniusmedicalcare.com.
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide and is a leading post-acute care provider in Central Europe. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management to total operational management.
Revenue increased by 14% (13% in constant currency) to €583 million (Q1/22: €513 million). Organic growth was 13%.
Revenue in the service business increased by 8% (7% in constant currency) to €436 million (Q1/22: €405 million) due to better performance of technical services in Germany, Italy and United Kingdom. Revenue in the project business increased by 36% (36% in constant currency) to €147 million (Q1/22: €108 million). The good revenue performance is mainly attributable to higher revenue in European project business.
EBIT1 decreased to -€27 million (Q1/22: €8 million) with an EBIT margin1 of -4.6% (Q1/22: 1.6%). The weak development was related to the project business that partially did not have a contribution margin. Moreover, certain international business initiations did not materialize as planned. Significant negative one-time effects in the service business also impacted the EBIT development. To counteract the negative EBIT development, a major restructuring program was initiated.
Net income1,2 decreased to -€36 million (Q1/22: €4 million).
Order intake was €43 million (Q1/22: €263 million). As of March 31, 2023, order backlog was at €3,580 million (December 31, 2022: €3,689 million).
Operating cash flow decreased to -€68 million (Q1/22: -€45 million) with a margin of
-11.7% (Q1/22: -8.8%), due to the negative earnings and higher working capital.
For FY/2023, Fresenius Vamed expects organic revenue3 to grow in a low-to mid-single digit percentage range. The EBIT margin4 is expected to be clearly below the structural margin band of 4% to 6%.
1 Before special items
2 Net income attributable to shareholders of VAMED AG
3 FY/22 base: €2,359 million
4 FY/22 base: EBIT margin: 0.8%, before special items; FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Conference Call and Webcast
As part of the publication of the results for Q1/23, a conference call will be held on May 9, 2023 at 1:30 p.m. CEDT (7:30 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com/investors. Following the call, a replay will be available on our website.
For additional information on the performance indicators used please refer to our website www.fresenius.com/alternative-performance-measures.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
If no timeframe is specified, information refers to Q1/2023.
1 According to FY/23 guidance, excluding Provider Relief Fund (PRF) at Fresenius Medical Care
2 Before special items, Q1/22 restated following remeasurement Humacyte investment
3 Before special items For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
“With a simplified Group structure, improved performance, and a clear focus, Fresenius’s course is set. Productivity measures are gaining traction and we’ve started the new year with good growth momentum,” said Michael Sen, Fresenius CEO. “Our Operating Companies Fresenius Kabi and Fresenius Helios both had strong first quarter performance. The deconsolidation of Fresenius Medical Care is on track and the turnaround is also progressing. We want to accelerate this momentum. This requires contributions from all business segments.”
Deconsolidation of Fresenius Medical Care
The deconsolidation of Fresenius Medical Care is moving ahead as planned. The separation concept has been finalized and the relevant agreements are currently being drafted. The date of the Extraordinary General Meeting (EGM) of Fresenius Medical Care has been scheduled for July 14, 2023. Subject to the necessary shareholder approvals and the registration with the commercial register, the conversion is expected to become effective latest by the end of the 2023 financial year.
Moreover, starting in Q1/23, selected financials of the Fresenius Group are reported excluding Fresenius Medical Care to better reflect #FutureFresenius.
Structural productivity improvements
Under the cost and efficiency program, ~€130 million of structural cost savings at EBIT level were already achieved in Q1/23, that is around 25% of the planned savings for 2023. In the same period, one-time costs of ~€50 million incurred to achieve these savings. These are treated as special items. Thereof, Fresenius Medical Care invested €26 million and realized ~€60 million of cost savings.
FY/23 Group guidance confirmed
For 2023, Fresenius expects Group organic revenue1 to grow in a low- to mid-single-digit percentage range. Group constant currency EBIT2 is expected to remain broadly flat or decline up to a high-single-digit percentage rate.
Excluding Fresenius Medical Care constant currency EBIT3 is expected to remain broadly flat or decline up to a mid-single-digit percentage rate.
Fresenius expects the net debt/EBITDA4 ratio to be slightly above the 2023 level by the end of 2022 (December 31, 2022: 3.65x5), depending on divestment activities. The self-imposed target corridor for the leverage ratio remains unchanged at 3.0x to 3.5x.
1 FY/22 base: €40,840 million
2 FY/22 base: €3,727 million, before special items, excl. PRF; FY/23: before special items
3 FY/22 base: €2,187 million, before special items; FY/23: before special items
4 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; excluding further potential acquisitions/divestitures; before special items; including lease liabilities
5 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; before special items; including lease liabilities
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Assumptions for guidance FY/23
For 2023, Fresenius assumes no further escalations of geopolitical tensions and challenges from COVID-19, and supply chain constraints continuing to ease. Fresenius expects that the general cost inflation and labor shortages will have a more significant negative effect on its business than in 2022 due to the annualization effect of cost increases occurred in H2/2022.
Fresenius will continue to closely monitor the potential further consequences of the overall heightened volatility and muted visibility, including balance sheet valuations.
For Fresenius Medical Care’s contribution to the Group’s financial figures, the assumptions for Fresenius Medical Care’s FY/23 guidance are also fully applicable to Fresenius Group’s FY/23 guidance. In 2022, Fresenius Medical Care’s EBIT was supported by €277 million of Provider Relief Funding from the U.S. government (at current currency). There is no additional governmental support assumed for 2023.
All of these assumptions are subject to considerable uncertainty.
5% revenue increase in constant currency
Group revenue increased by 5% (5% in constant currency) to €10,225 million (Q1/22: €9,720 million). Organic growth was 5%. Acquisitions/divestitures contributed net 0% to growth. In total, currency translation had no effect on revenue growth. Excluding Fresenius Medical Care, Group revenue increased by 7% (7% in constant currency) to €5,546 million (Q1/22: €5,192 million).
10 %1 EBIT2 decline in constant currency – in line with expectations
Group EBITDA before special items decreased by 5% (-6% in constant currency) to €1,585 million (Q1/222: €1,662 million). Reported Group EBITDA was €1,491 million (Q1/22: €1,595 million).
Group EBIT before special items decreased by 9% (-11%/-10%1 in constant currency) to €908 million (Q1/222: €1,000 million). The decrease was mainly driven by the expected annualization of inflationary effects such as cost increases for personnel, material, logistics, and energy. This is due to the fact that H2/2022 showed stronger cost inflation compared to H1/2022. Moreover, a very negative performance at Fresenius Vamed weighed on Group EBIT. The EBIT margin before special items was 8.9% (Q1/222: 10.3%). Reported Group EBIT was €787 million (Q1/22: €902 million). Excluding Fresenius Medical Care, Group EBIT before special items decreased by 7% (-7% in constant currency) to €554 million (Q1/222: €593 million). The EBIT margin excluding Fresenius Medical Care before special items was 10.0% (Q1/222: 11.4%).
Group net interest before special items was -€170 million (Q1/222: -€119 million) mainly due to financing activities in a higher interest rate environment. Reported Group net interest was -€170 million (Q1/22: -€118 million).
Group tax rate before special items increased to 24.9% (Q1/222: 22.7%) mainly due to an increase in the proportionate share of non-tax-deductible expenses compared to taxable income at Fresenius Medical Care as well as the non-recognition of increased tax loss carryforwards. Reported Group tax rate was 25.0% (Q1/22: 23.6%).
Noncontrolling interests before special items were -€165 million (Q1/222: -€218 million) of which 93% were attributable to the noncontrolling interests in Fresenius Medical Care. Reported noncontrolling interests were -€117 million (Q1/22: -€186 million).
1 According to FY/23 guidance, excluding Provider Relief Fund (PRF) at Fresenius Medical Care
2 Before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Group net income1 before special items decreased by 16% (-17% in constant currency) to €389 million (Q1/222: €463 million). The decrease was driven by cost inflation and the negative earnings development at Fresenius Vamed. Moreover, rising interest costs and a higher tax rate weighed on the net income development. Reported Group net income1 before special items decreased to €346 million (Q1/22: €413 million). Excluding Fresenius Medical Care, Group net income1 before special items decreased by 14% (-16% in constant currency) to €341 million (Q1/222: €397 million).
Earnings per share1 before special items decreased by 17% (-18% in constant currency) to €0.69 (Q1/222: €0.83). Reported earnings per share1 were €0.61 (Q1/22: €0.74).
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA
2 Before special items
Investments
Spending on property, plant and equipment was €353 million corresponding to 3% of revenue (Q1/22: €338 million; 3% of revenue). These investments served primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Excluding Fresenius Medical Care, spending on property, plant and equipment was €211 million corresponding to 4% of revenue (Q1/22: €176 million; 3% of revenue).
Total acquisition spending was €68 million (Q1/22: €162 million) mainly for investments in debt instruments and the purchase of dialysis clinics.at Fresenius Medical Care. Excluding Fresenius Medical Care, total acquisition spending was €18 million (Q1/22: €79 million).
Cash flow development
Group operating cash flow increased to €175 million (Q1/22: €101 million) driven by the governmental support on energy costs at Fresenius Helios in Germany. Significantly higher working capital at Fresenius Kabi in particular receivables and inventory weighed on cash flow. Furthermore, the earnings development at Fresenius Vamed had a negative impact. The first quarter is traditionally a softer cash flow quarter due to phasing effects with catch-up effects over the course of the year. Group operating cash flow margin was 1.7% (Q1/22: 1.0%). Free cash flow before acquisitions and dividends increased to -€177 million (Q1/22: -€255 million). Free cash flow after acquisitions and dividends increased to -€281 million (Q1/22: -€403 million).
The cash conversion rate (CCR), which is defined as the ratio of adjusted free cash flow1 to EBIT before special items, was 0.3 (LTM: 1.1). As the first quarter is traditionally a softer cash flow quarter due to phasing effects a catch-up over the course of the year is expected.
1 Cash flow before acquisitions and dividends; before interest, tax, and special items
Solid balance sheet structure
Group total assets remained nearly unchanged compared to FY/22 (1% in constant currency) at €76,553 million (Dec. 31, 2022: €76,415 million) given the expansion of business activities which, however, was offset by currency translation effects. Current assets increased by 5% (6% in constant currency) to €19,102 million (Dec. 31, 2022: €18,279 million), mainly driven by the increase of trade account receivables. Non-current assets decreased by 1% (0% in constant currency) to €57,451 million (Dec. 31, 2022: €58,136 million).
Total shareholders’ equity decreased by 0% (2% in constant currency) to €32,173 million (Dec. 31, 2022: €32,218 million). The equity ratio was 42.0% (Dec. 31, 2022: 42.2%).
Group debt increased by 0% (1% in constant currency) to €27,765 million (Dec. 31, 2022: € 27,763 million). Group net debt increased by 2% (2% in constant currency) to € 25,444 million (Dec. 31, 2022: € 25,014 million).
As of March 31, 2023, the net debt/EBITDA ratio was 3.79x2,3 (Dec. 31, 2022: 3.65x1,2) mainly driven by lower EBITDA contribution and higher net debt. Excluding Fresenius Medical Care, the net debt/EBITDA ratio was 3.96x1,2 (Dec. 31, 2022: 3.80x1,2).
In Q1/23, ROIC was 4.8% due to the lower EBIT (Q4/22: 5.1%). Excluding Fresenius Medical Care, the ROIC was 5.2% (Q4/22: 5.6%).
1 Cash flow before acquisitions and dividends; before interest, tax, and special items
2 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures
3 Before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Business Segments – Operating Companies
Fresenius Kabi
Fresenius Kabi specializes in products for the therapy and care of critically and chronically ill patients. The portfolio includes biopharmaceuticals, clinical nutrition, MedTech products, intravenously administered generic drugs (generic IV drugs), and IV fluids.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Revenue increased by 8% (8% in constant currency) to €1,991 million (Q1/22: €1,847 million) mainly driven by the strong business development of all growth vectors. Organic growth was 7%.
Revenue in MedTech increased by 11% (organic growth: 9%) to €378 million (Q1/22: €342 million) mainly driven by the good business development in Latin America.
Revenue in Nutrition increased by 4% (organic growth: 8%) to €602 million (Q1/22: €577 million) mainly driven by the good business development in Latin America and Europe.
Revenue in Biopharma increased by 207% (organic growth: 57%) to €71 million (Q1/22: €23 million) mainly driven by the good business development in Latin America.
Revenue of the Growth Vectors (MedTech, Nutrition and Biopharma) increased by 12% (organic growth: 10%) to €1,051 million (Q1/22: €942 million).
Revenue in the Pharma (IV Drugs & Fluids) business increased by 4% (organic growth: 3%) to €940 million (Q1/22: €905 million). The good business development in Europe and North America was dampened by offsetting effects in China.
EBIT1 decreased by 1% (-4% in constant currency) to €289 million (Q1/22: €293 million) due to the annualization of cost inflation effects. EBIT margin1 was 14.5% (Q1/22: 15.9%) and thus within the structural EBIT margin band. The positive sequential development is driven by the well progressing cost savings program as well as targeted pricing initiatives.
EBIT1 of the Growth Vectors (MedTech, Nutrition and Biopharma) decreased by 14% (-17% in constant currency) to €96 million (Q1/22: €112 million) due to the annualization of cost inflation effects. EBIT1 margin was 9.2% (Q1/22: 11.9%).
EBIT1 in the Pharma (IV Drugs & Fluids) business increased by 7% (4% in constant currency) to €197 million (Q1/22: €185 million) due to positive development in the North American region. EBIT1 margin was 21.0% (Q1/22: 20.4%).
Net income1,2 decreased by 5% (-7% in constant currency) to €191 million (Q1/22: €201 million).
Operating cash flow decreased to €21 million (Q1/22: €133 million) with a margin of 1.1% (Q1/22: 7.2%) mainly driven by phasing effects and working capital build-ups, in particular higher inventories.
For FY/23, Fresenius Kabi expects organic revenue3 growth in a low- to mid-single-digit percentage range. The EBIT margin4 is expected to be around one percentage point (pp) below the structural margin band of 14% to 17%.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA.
3 FY/22 base: €7,850 million
4 FY/22 base: EBIT margin: 13.8%, before special items; FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Fresenius Helios
Fresenius Helios is Europe's leading private health care provider. The company comprises Helios Germany, Helios Spain and Helios Fertility. Helios Germany operates 87 hospitals, around 240 outpatient centers, 22 occupational health centers and 6 prevention centers. Helios Spain operates 50 hospitals, around 100 outpatient centers and around 300 occupational risk prevention centers. In addition, the company is active in Latin America with 8 hospitals and as a provider of medical diagnostics. Helios Fertility offers a wide spectrum of state-of-the-art services in the field of fertility treatments.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Revenue increased by 5% (5% in constant currency) to €3,066 million (Q1/22: €2,931 million). Organic growth was 5%. Acquisitions contributed 0% to revenue growth.
Revenue of Helios Germany increased by 3% (organic growth: 3%) to €1,828 million (Q1/22: €1,783 million), mainly driven by increasing admissions and positive mix effects.
Revenue of Helios Spain increased by 7% (9% in constant currency) to €1,170 million (Q1/22: €1,089 million). Organic growth of 8% was driven by ongoing patient demand. The clinics in Latin America also showed a good performance.
Revenue of Helios Fertility increased by 16% (18% in constant currency) to €66 million (Q1/22: €57 million) as patients are returning to demand fertility treatments.
EBIT1 increased by 2% (2% in constant currency) to €311 million (Q1/22: €306 million) with an EBIT margin1 of 10.1% (Q1/22: 10.4%).
EBIT1 of Helios Germany increased despite cost inflation by 1% to €155 million (Q1/22: €154 million) with an EBIT margin1 of 8.5% (Q1/22: 8.6%).
EBIT1 of Helios Spain increased due to the strong revenue growth and despite cost inflation by 3% (4% in constant currency) to €157 million (Q1/22: €153 million). The EBIT margin1 was 13.4% (Q1/22: 14.0%).
EBIT1 of Helios Fertility was €4 million (Q1/22: €4 million) with an EBIT margin1 of 6.1% (Q1/22: 7.0%).
Net income1,2 decreased by 3% (-2% in constant currency) to €190 million (Q1/22: €195 million).
Operating cash flow increased to €108 million (Q1/22: -€136 million) mainly due to governmental support measures to mitigate higher energy costs in Germany and an improved working capital management. The operating cash flow margin was 3.5% (Q1/22: -4.6%).
For FY/23, Fresenius Helios expects organic revenue3 growth in a mid-single-digit percentage range. The EBIT margin4 is expected to be within the structural margin band of 9% to 11%.
1 Before special items
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
3 FY/22 base: €11,716 million
4 FY/22 base: EBIT margin: 10.1%, before special items, FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Business Segments – Investment Companies
Fresenius Medical Care
(Financial data according to Fresenius Medical Care press release)
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. As of March 31, 2023, Fresenius Medical Care was treating approximately 343,000 patients in 4,060 dialysis clinics. Dialyzers and dialysis machines are among the most important product lines. In addition, Fresenius Medical Care offers dialysis-related services.
Revenue increased by 3% to €4,704 million (+2% in constant currency, organic: +2%).
EBIT decreased by 25% to €261 million (-28% in constant currency), resulting in a margin of 5.5% (Q1/22: 7.6%). EBIT excluding special items and U.S. Provider Relief Funding (PRF) decreased by 9% to €354 million (-13% in constant currency), resulting in a margin of 7.5% (Q1/22: 8.6%).
Net income2 decreased by 45% to €86 million (-47% in constant currency). Excluding special items and PRF, net income decreased by 22% to €154 million ( 24% in constant currency).
In the first quarter, Fresenius Medical Care generated €143 million of operating cash flow (Q1/22: €159 million), resulting in a margin of 3.0% (Q1/22: 3.5%). The reduction was mainly due to the decrease in net income.
1 Before special items
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Based on the results for the first quarter, Fresenius Medical Care confirms its financial targets for 2023. Fresenius Medical Care expects for 2023 revenue1 to grow at a low to mid-single digit percentage rate and EBIT2 to remain flat or decline by up to a high-single digit percentage rate3.
1 FY/22 base: €19,398 million
2 FY/22 base: €1,540 million
3 Revenue and EBIT, as referred to in the outlook, are both on a constant currency basis and excluding special items. Special items will be provided as separate KPI (“Revenue excluding special items”, “EBIT excluding special items”) to capture effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. These items are excluded to ensure comparability of the figures presented with the Company’s financial targets which have been defined excluding special items.
For FY 2022, special items included costs related to the FME25 program, the impact of the war in Ukraine, the impact of hyperinflation in Turkiye, the Humacyte investment remeasurement, and the net gain related to InterWell Health. Additionally, FY 2022 basis for Outlook 2023 and 2025 was adjusted for Provider Relief Funding.
For FY 2023, special items include costs related to the FME25 program, the Humacyte investment remeasurement, the costs associated with the legal conversion and effects from legacy portfolio optimization.
For further information, please see Fresenius Medical Care’s press release at www.freseniusmedicalcare.com.
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide and is a leading post-acute care provider in Central Europe. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management to total operational management.
Revenue increased by 14% (13% in constant currency) to €583 million (Q1/22: €513 million). Organic growth was 13%.
Revenue in the service business increased by 8% (7% in constant currency) to €436 million (Q1/22: €405 million) due to better performance of technical services in Germany, Italy and United Kingdom. Revenue in the project business increased by 36% (36% in constant currency) to €147 million (Q1/22: €108 million). The good revenue performance is mainly attributable to higher revenue in European project business.
EBIT1 decreased to -€27 million (Q1/22: €8 million) with an EBIT margin1 of -4.6% (Q1/22: 1.6%). The weak development was related to the project business that partially did not have a contribution margin. Moreover, certain international business initiations did not materialize as planned. Significant negative one-time effects in the service business also impacted the EBIT development. To counteract the negative EBIT development, a major restructuring program was initiated.
Net income1,2 decreased to -€36 million (Q1/22: €4 million).
Order intake was €43 million (Q1/22: €263 million). As of March 31, 2023, order backlog was at €3,580 million (December 31, 2022: €3,689 million).
Operating cash flow decreased to -€68 million (Q1/22: -€45 million) with a margin of
-11.7% (Q1/22: -8.8%), due to the negative earnings and higher working capital.
For FY/2023, Fresenius Vamed expects organic revenue3 to grow in a low-to mid-single digit percentage range. The EBIT margin4 is expected to be clearly below the structural margin band of 4% to 6%.
1 Before special items
2 Net income attributable to shareholders of VAMED AG
3 FY/22 base: €2,359 million
4 FY/22 base: EBIT margin: 0.8%, before special items; FY/23 before special items
For a detailed overview of special items please see the reconciliation tables on pages 18-23 in the PDF.
Conference Call and Webcast
As part of the publication of the results for Q1/2023, a conference call will be held on May 9, 2023 at 1:30 p.m. CEDT (7:30 a.m. EDT). You are cordially invited to follow the conference call in a live broadcast over the Internet at https://www.fresenius.com/calendar. Following the press conference, a replay will be available on our website.
For additional information on the performance indicators used please refer to our website www.fresenius.com/alternative-performance-measures.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, the availability of financing and unforeseen impacts of international conflicts. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Consolidated Financial Statements and Management Report (IFRS)
