Fresenius Company Presentation
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Company Presentation October 2021 Safe Harbor Statement This presentation 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, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation. Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 2 Agenda 02 03 04 01 Strategic update Financial review Attachments Q2/21 & Company Outlook FY/21 Highlights Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 3 A Global Leader in Health Care Products and Services in sales Long-term (FY/2020) opportunities in growing, € 36.3 bn non-cyclical markets Global presence Strong financial in 100+ performance countries and cash flow 100 + generation Leading Employees market worldwide positions (as of June 30, 2021) #1 310,000+ Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 4 Investment Highlights Diversified healthcare Group Leading positions in Resilient business model with four strong business growing non-cyclical based on megatrends segments markets healthcare and demographics Purpose-driven business Strong financial Reliable delivers sustainable performance and cash dividend growth contribution to society flow generation Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 5 Global Trends offer Growth Opportunities for Fresenius Increasing 4x national income Generic GDP per capita quadrupled Growing drugs over last 20 years in emerging save the US healthcare sector markets and developing healthcare Growth in emerging 293bn economies system4 +6.3% markets over the next p.a. decade2 p.a. by 2050 Aging 100bn Population while the 16% p.a. In 2019: 9% of the European world population is Chronically healthcare > age 651 5 ill patients system saves € Growth of adults with diabetes +48% worldwide 2017–20453 Sources: 1 UN, 2019 Revision of World Population Prospects (2019) 2 UBS, Longer Term Investments: EM healthcare (2018) 3 IDF Diabetes Atlas (2017) 4 AAM report (2019) 5 UBS, Longer Term Investments: Generics (2018) Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 6 The Fresenius Strategy Improve profitability Drive Quality Internation- alization Hospital Dialysis supplies & products & Innovation services services Employees Better Hospital Hospital projects & medicine and operations services health care services for ever more people Forward thinking healthcare to improve the lives of patients Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 7 Strategic Roadmap Operational excellence Growth drivers 3 Accelerate Capital allocation Strategic evaluation Significant cost savings Launch Idacio in US Growth areas: Biosimilars, Fertility, 2 Grow Digital services, Home-hemodialysis First meaningful cost savings Balance sheet flexibility Continuous progress biosimilars Value creating capital allocation Deleverage / Capex reduction Optimize Ongoing strategic evaluation 1 Value creating capital allocation Initiate Cost efficiency program Ongoing strategic evaluation Further roll-out biosimilars Balance sheet focus Disciplined capital allocation Medium-term 2020-2023 1 Ongoing strategic evaluation Sales:4% - 7% CAGR EAT: 5% - 9% CAGR1 2021 2022 2023 1 Plus ~1% small to mid-sized acquisitions Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 8 Growth Areas Worldwide growing Growing Markets with Marketing of existing Attractive markets dialysis market High Entry Barriers value chain Strengthening Standardizing Attractive Market and extension medical procedures Product Pipeline consolidation of value chain Home dialysis Entry into attractive Development of post-acute Synergies strategy biosimilars business care business Innovating Strong Emerging Markets Greenfield investments Expansion of products Presence in Spain geographic presence Fertility Services Further Internationalization Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 9 Environment, Social and Governance Setting the right priorities in a COVID-19 world ESG priorities confirmed Sustainability progress in 2020 Corporate governance update “Better medicine for more people” Rating improvements across the board, New Management Board remuneration Highlights: CDP Climate from “C” to “B”, system approved at AGM, includes ESG Ensuring access to medicine MSCI from “BB” to “BBB” component Restructured, GRI-aligned sustainability report Supervisory Board election on AGM agenda: Protecting our employees released in March 2021 Wolfgang Kirsch new Chairman of Supervisory Strategy and KPI alignment program to be Board of Fresenius SE & Co. KGaA Alignment with SDGs published on website continued in 2021, driven by Group Sustainability Board Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 10 Environment, Social and Governance Refreshed Materiality analysis in 2020 - core priorities confirmed, new topics added Well-being of the Digital Transformation Employees patient & Innovation Working conditions, recruitment Access to health care Digitilization & Innovation & employee participation and medicine Cybersecurity Employee development Patient & Product safety Occupational health & safety Diversity Compliance & Integrity Environment Diversity and Compliance Water management equal opportunities Data protection Waste and recycling management Human Rights Climate protection Supply Chain Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 11 ESG Rating Overview Continuous Improvement through Reporting and Engagement CDP Climate: B 50/100 Current Score Prime C+ BBB 17.8 Low Risk CDP Water: C DJSI Europe Rank 6 out of 99 at Sector Average CDP Climate: C C- BBB - A 28 / 100 subindustry level CDP Climate: C Previous Score Prime C BB 39/100 19.6 Low Risk CDP Water: C Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 12 Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2020 Sales by Region Sales in € bn 36,277 6% 35,409 CAGR 33,886 33,530 Latin America Africa 29,471 4% 1% Asia-Pacific 10% €36.3 bn Europe 4,612 44% 4,830 4,688 4,302 4,561 North America 41% 2016 2017 2018 2019 2020 EBIT Before special items 2016-2018 excluding IFRS 16 Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 13 Strong track record of organic sales growth 5% 7% 7% 7% 7% CAGR 5% 5% 4% 4% 4% 6% 6% 3% 5% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 4% 3% 16% 16% 4% 6% 5% 5% 4% 4% 3% ´16 ´17 ´18 ´19 ´20 ´16 ´17 ´18 ´19 ´20 -8% ´16 ´17 ´18 ´19 ´20 Shaded areas show estimated COVID-19 effects Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 14 Strong and Balanced Health Care Portfolio Ownership: ~32% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Hospital Supplies Hospital Operation Projects and Services Health Care Services for Hospitals • Dialysis services • IV drugs • Acute care • Post-acute care • Hemodialysis products • Clinical nutrition • Outpatient services • Project development & Planning • Peritoneal dialysis products • Infusion therapy • Occupational Risk Prevention • Turnkey construction • Complete therapy offerings • Medical devices/ Transfusion • Fertility Services • Maintenance & Technical and total technology operational management • Biosimilars Sales 2020: €17.9 bn Sales 2020: €7.0 bn Sales 2020: €9.8 bn Sales 2020: €2.1 bn Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 15 Fresenius Medical Care: Global Dialysis Market Leader The world’s leading provider of dialysis • Sales by Region Market Dynamics products and services treating ~346,000 patients1 in ~4,100 clinics1 Asia-Pacific North America Increase in worldwide demand and Latin America 70% • Sustainable business based on • Provide highest standard of product ~ 3% Patient growth in 2020 15% + 37% Growth of home hemodialysis quality and patient care high quality products and Sales 2020: treatments in 2020 in the U.S. EMEA €17.9 bn 15% services Global market for dialysis Dialysis products products• Strong andglobal services footprint ~ € 82 bn Dialysis services • Leading market positions Big• Highly Data isqualified driving employees new Complete therapy offerings treatment models • High level of vertical integration ~ 54 million • Expansion of global dialysis services; dialysis treatments in 2020 enter new geographies providing sound data basis to further standardize medical setups at Fresenius Medical Care 1 As of June 30, 2021 Company Presentation October 2021 © Fresenius SE & Co. KGaA Investor Relations & Sustainability 16 Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for Sales by Region Market Dynamics critically and chronically ill patients • Strong Emerging Markets presence Emerging Markets Growing healthcare spending •