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 2024.

Sufficient financial cushion is assured for the Fresenius Group by unused syndicated and bilateral credit lines. In addition, Fresenius SE & Co. KGaA has a commercial paper program. 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.

The net debt/EBITDA ratio is expected to be approximately 2.5 at the end of 2016 (calculated at expected annual average exchange rates, for both net debt and EBITDA; excluding potential acquisitions).

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.

Debt and Interest Ratios of the Fresenius Group

 

  Dec 31, 2015  Dec 31, 2014 
Debt (€m)1
thereof US$ denominated

14,769

52%

15,354

48%

Net debt (€m)1  13,725  14,170
Net debt/EBITDA1,2  2.71  3.39
Net debt/EBITDA1,2
at LTM average FX rates for both EBITDA and net debt

 2.68

3.24
EBITDA/Interest3  8.3  6.8

 

  • 1 Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)
  • 2 Before special items; 2014 pro forma acquisitions
  • 3 Before special items
Net debt/EBITDA

Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)

 1 At expected annual average exchange rates, for both net debt and EBITDA; excluding potential acquisitions