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 2033.

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 3.0 to 3.5x (after adoption of IFRS 16). Based on expected lower contributions to Group EBITDA from Fresenius Medical Care as well as assumed cash phasing effects in Q4/21, Fresenius does not expect the net debt/EBITDA3 ratio of 3.55x1,2 as of September 30, 2021 to improve in Q4/21 (December 31, 2020: 3.44x1,2).

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
2 Before special items
3 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; excluding further potential acquisitions; before special items

Net debt/EBITDA1

2002 – 2019 excluding IFRS 16


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