Fresenius Group Overview

Financing Strategy & Targets

Ensure financial flexibility and optimizing the cost of capital are the main objectives in Fresenius’s financing strategy.

We employ a balanced mix of equity and debt to optimize the average cost of capital. We ensure financial flexibility by using a broad spectrum of financing instruments. Our financing profile is characterized by a wide spread of maturities up to 2032.

Sufficient financial cushion is assured for the Fresenius Group by unused syndicated and bilateral credit lines. In addition, Fresenius SE & Co. KGaA and Fresenius Medical Care AG & Co. KGaA maintain commercial paper programs. The Fresenius Medical Care receivable securitization program offers additional financing options.

In present capital market conditions we optimize our cost of capital if we hold the net debt/EBITDA ratio within a range of 2.5 to 3.0. As of June 30, 2018, the net debt/EBITDA ratio was 2.801 (December 31, 2017: 2.841). Fresenius expects to further reduce its net debt/EBITDA2 ratio by year-end 2018.

In line with the Group’s structure, financing for Fresenius Medical Care and for the rest of the Fresenius Group is conducted separately. There are no joint financing facilities and no mutual guarantees.

1 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures, excluding Akorn and NxStage transactions
2 Calculated at expected annual average exchange rates for both net debt and EBITDA; excluding effects of the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities; excluding further potential acquisitions; at current IFRS rules

Net debt/EBITDA
Leverage ratio
Before special items; pro forma closed acquisitions/divestitures
At LTM average FX rates for both EBITDA and net debt

1 Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG
2 Calculated at expected annual average exchange rates, for both net debt and EBITDA; excluding expenses related to (i) the Akorn transaction, (ii) NxStage acquisition; excluding gains from divestitures of Care Coordination activities; excluding further potential acquisitions; at current IFRS rules
3 Excluding proceeds from divestitures of Care Coordination activities