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 December 31, 2017, the net debt/EBITDA ratio was 2.841 (September 30, 2017: 2.971). 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.

1At LTM average exchange rates for both net debt and EBITDA; pro forma acquisitions; before special items

2Calculated at expected annual average exchange rates, for both net debt and EBITDA; excluding pending acquisitions of Akorn and NxStage; excluding further potential acquisitions; at current IFRS rules

Net debt/EBITDA
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1 Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

2 Excluding pending acquisitions of Akorn and NxStage; excluding further potential acquisitions; at current IFRS rules

Before special items; pro forma acquisitions

At LTM average FX rates for both net debt and EBITDA