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 (before adoption of IFRS 16). As of December 31, 2018, the net debt/EBITDA ratio was 2.711,2  (December 31, 2017: 2.841,2). At year-end 2019, Fresenius now expects the net debt/EBITDA3 ratio to be on a comparable level to 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 NxStage transaction
2 Before special items
3 Calculated at expected annual average exchange rates for both net debt and EBITDA; excluding effects of the NxStage transaction; excluding further potential acquisitions; adjusted for IFRS 16 effect

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 pending acquisition of NxStage; excluding further potential acquisitions; adjusted for IFRS 16 effect

3 Excluding proceeds from divestitures of Care Coordination activities