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 March 31, 2019, the net debt/EBITDA ratio was 3.091,2,3 (December 31, 2018: 2.711). Excluding the acquisition of NxStage the net debt/EBITDA ratio was 2.831,2. Including the NxStage acquisition which is increasing the net debt/EBITDA ratio in 2019 by ~30 basis points and excluding IFRS 16, Fresenius expects year-end 2019 net debt/EBITDA ratio4 to be at the upper-end of the original self-imposed target corridor of 2.5 to 3.0x.

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, before special items
2 Adjusted for IFRS 16 effect
3 Including acquisition of NxStage
4 Calculated at expected annual average exchange rates for both net debt and EBITDA, including acquisition of NxStage, excluding further potential acquisitions

Net debt/EBITDA
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Before special items, excluding further potential acquisitions

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 Comparable to guidance from February 20, 2019: excluding acquisition of NxStage, adjusted for IFRS 16 effect

3 Excluding proceeds from divestitures of Care Coordination activities

4 Comparable to guidance from May 2, 2019: including acquisition of NxStage, adjusted for IFRS 16 effect

5  Calculated at expected annual average exchange rates, for both net debt and EBITDA, including acquisition of NxStage, adjusted for IFRS 16 effect