Fresenius : FSE IN Q3 2022 en 0

Investor News

Conference Call and

Live Webcast

October 31, 2022, 1:30 p.m.

Markus Georgi

Senior Vice President

Investor Relations & Sustainability

Fresenius SE & Co. KGaA

Else-Kröner-Straße 1

61352 Bad Homburg

Germany

1. [phone] F [phone] [e-mail] www.fresenius.com

October 30, 2022

Fresenius with weak third quarter driven by ongoing challenging macroeconomic environment - FY/22 guidance revised - Charting a new course for Fresenius

• Healthy organic sales growth and ongoing margin pressure
• Fresenius Medical Care's business development impacted by delayed effects from improvements in North American Services business in challenging environment
• Fresenius Kabi with healthy sales growth and sequential improvement
• Fresenius Helios with strong organic sales growth, solid EBIT in line with usual third quarter seasonality
• Fresenius Vamed impacted by macroeconomic headwinds and COVID-19

If no timeframe is specified, information refers to Q3/2022.

						Growth						Growth
€ in millions		Q3 / 2022				in constant		Q1-3 / 2022				in constant
		Growth		currency			Growth		currency
Sales		10,459		12%		5%		30,197		10%		4%
EBIT1		949		-9%		-17%		2,952		-4%		-10%
Net income1,2		371	-15%	-22% /-19%3	1,284	-5%	-10%/-8%3

1. Before special items, Q1/22 restated following remeasurement Humacyte investment
2. Net income attributable to shareholders of Fresenius SE & Co. KGaA
3. Excluding Ivenix and mAbxience acquisitions

For a detailed overview of special items please see the reconciliation tables on pages 22-25.

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Michael Sen, CEO of Fresenius said, "Over the past month, I've met with many of my Fresenius colleagues. Like me, they have tremendous passion and commitment to patients, physicians and health care professionals. What we do is life-saving."

Sen continued, "Everyone at Fresenius knows we must improve on what we do. My priorities are clear: Reset the company aiming at becoming a stronger company and delivering value for our shareholders. Our businesses are growing yet in a more challenging environment. Now we sharpen our focus on structural productivity. More fundamentally, we have embarked on a top-to-bottom review of every business activity, looking at the entire corporate portfolio. The focus is on returns. This will not happen overnight, but we will move at a faster pace and more decisively than ever before. This will benefit all our stakeholders. This is #FutureFresenius."

Sen concluded, "Fresenius is a strong company, with great products, great market positions. Now we have to make it stronger."

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FY/22 Group guidance

Since Fresenius Medical Care continues to operate in a challenging environment, the impacts of the Company's focused efforts to improve North American Health Care Services operations are delayed against previous assumptions. Therefore, Fresenius Medical Care now assumes lower contributions in the financial year 2022.

Consequently, Fresenius Medical Care now expects net income (attributable to shareholders of Fresenius Medical Care AG & Co. KGaA) for the financial year 2022 to decline in the high teens to mid-twenties percentage range. The Company continues to anticipate revenue to grow at a low-single digit percentage range in the financial year 2022. These targets are in constant currency and exclude special items.

All other business segments of the Fresenius Group, in particular Vamed, are also affected by a challenging overall economic environment. Thus, there are increased uncertainties, inflation-related cost increases, staff shortages, disruptions in supply chains, and increased energy costs. This has a direct impact on customer and patient behavior.

However, as a consequence of the development at Fresenius Medical Care, Fresenius Vamed, and in view of increasing indications of a persistent unfavorable development of these and other factors for the further course of the financial year, the Management Board has changed its risk assessment and consequently also adjusted the Group outlook for FY/22.

At constant currency, the Company now anticipates Group net income1,2 to decline around ten percent (previously: decline in a low-to-midsingle-digit percentage range). Group sales3 in constant currency continue to be expected to grow in a low-to-midsingle-digit percentage range.

Without the closed acquisition of Ivenix and the completed acquisition of a majority stake in mAbxience as well as any further potential acquisitions, Fresenius expects the net debt/EBITDA4 ratio to be roughly on the same level as in Q3/22 (3.64x5) by the end of 2022 (December 31, 2021: 3.51x5).

1. Net income attributable to shareholders of Fresenius SE & Co. KGaA
2. FY/21 base: €1,867 million, before special items; FY/22: before special items
3. FY/21 base: €37,520 million
4. At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; excluding further potential acquisitions; 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 22-25.

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Assumptions for guidance FY/22

For 2022 and beyond, Fresenius expects that the current challenging market environment and the global macro-economic headwinds will remain. In particular, the general cost inflation, labor shortages, meaningful uncertainty with regard to the future development of energy prices, burdens from supply chain disruptions and ongoing impacts of the COVID-19 pandemic are expected to continue. The guidance does not consider a significant disruption of gas or electricity supplies in Europe.

Fresenius will continue to closely monitor the potential further consequences of the overall heightened volatility and muted visibility, including balance sheet valuations.

The war in Ukraine is directly and indirectly affecting Fresenius Group operations. The direct adverse effects of the war amounted to €24 million at net income1 level of Fresenius Group in Q1-3/22 and are treated as a special item.

COVID-19 will continue to impact Fresenius Group operations in 2022. An unlikely but possible significant deterioration of the situation triggering containment measures that could have a significant and direct impact on the health care sector without any appropriate compensation is not reflected in the Group's FY/22 guidance.

For Fresenius Medical Care's contribution to the Group's financial figures, the assumptions for Fresenius Medical Care's FY/22 guidance are also fully applicable to Fresenius Group's FY/22 guidance.

All of these assumptions are subject to considerable uncertainty.

The acquisitions of Ivenix and of the majority stake in mAbxience as well as any further potential acquisitions remain excluded from guidance.

1 Net income attributable to shareholders of Fresenius SE & Co. KGaA

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5% sales increase in constant currency

Group sales increased by 12% (5% in constant currency) to €10,459 million (Q3/21: €9,324 million). Organic growth was 4%. Acquisitions/divestitures contributed net 1% to growth. Currency translation increased sales growth by 7%. Excluding estimated COVID-19 effects1, Group sales growth would have been 4% to 5% in constant currency (Q3/21: 7% to 8%).

In Q1-3/22, Group sales increased by 10% (4% in constant currency) to €30,197 million (Q1-3/21: €27,554 million). Organic growth was 3%. Acquisitions/divestitures contributed net 1% to growth. Currency translation increased sales growth by 6%. Excluding estimated COVID-19 effects1, Group sales growth would have been 3% to 4% in constant currency (Q1-3/21: 5% to 6%).

19% net income2,3,4 decline in constant currency

Group EBITDA before special items decreased by 2% (-10% in constant currency) to €1,662 million (Q3/212: €1,703 million). Reported Group EBITDA was €1,658 million (Q3/21: €1,667 million).

In Q1-3/22, Group EBITDA before special items remained nearly unchanged (-6% in constant currency) at €5,006 million (Q1-3/212: €5,008 million). Reported Group EBITDA was €4,781 million (Q1-3/21: €4,957 million).

Group EBIT before special items decreased by 9% (-17% in constant currency) to €949 million (Q3/212: €1,044 million). The decrease was mainly driven by higher labor costs at Fresenius Medical Care in the U.S., general cost inflation, revaluation of contract assets in the international service and project business at Fresenius Vamed as well as higher costs in the Corporate segment. The EBIT margin before special items was 9.1% (Q3/212: 11.2%). Reported Group EBIT was €887 million (Q3/21: €1,008 million).

In Q1-3/22, Group EBIT before special items decreased by 4% (-10% in constant currency) to €2,952 million (Q1-3/212: €3,086 million). The EBIT margin before special items was

9.8% (Q1-3/212: 11.2%). Reported Group EBIT was €2,634 million (Q1-3/21: €3,035 million).

1. For estimated COVID-19 effects please see table on page 20.
2. Before special items
3. Net income attributable to shareholders of Fresenius SE & Co. KGaA
4. Excluding Ivenix and mAbxience acquisitions

For a detailed overview of special items please see the reconciliation tables on pages 22-25.

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