Financing Strategy & Targets
Ensure financial flexibility, limit refinancing risks and optimize the cost of capital are the main objectives in Fresenius’s financing strategy
Assuring financial flexibility is key to the financing strategy of the Fresenius Group. An adequate liquidity headroom maintains our financial flexibility. Our refinancing risks are limited due to a balanced maturity profile that is characterized by a broad spread of maturities with a high proportion of medium- and long-term financing up to 2033.
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.
Another main objective of the Fresenius Group’s financing strategy is to optimize the weighted average cost of capital by employing a balanced mix of equity and debt and striving to achieve a net debt/EBITDA ratio within a range of 3.0 to 3.5x.
Without further acquisitions1, Fresenius projects an improvement of the net debt/EBITDA2 ratio (March 31, 2022: 3.60x3) into the self-imposed target corridor of 3.0x to 3.5x by the end of 2022. Fresenius expects the net debt/EBITDA ratio to slightly increase once the acquisitions of Ivenix and the majority stake in mAbxience are closed.
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 Cut-off date: February, 22, 2022
2 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
3 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; before special items; including lease liabilities
Net debt/EBITDA1
1 At actual FX rates from 2002 to 2010 and at average FX rates from 2011 onwards, for both Net Debt and EBITDA; before special items; pro forma closed acquisitions/divestitures
2 Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG
3 Including IFRS 16