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.

The net debt/EBITDA ratio is expected to be within the bottom half of the target range of 2.5 to 3.0 at the end of 2017 (calculated at expected annual average exchange rates, for both net debt and EBITDA; without large unannounced 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, 2016 Dec 31, 2015  Dec 31, 2014 
Debt (€m)1
thereof US$ denominated

 14,780

52%

14,769

52%

15,354

48%

Net debt (€m)1  13,201  13,725  14,170

Net debt/EBITDA1,2,4
Net debt at year-end exchange rate; EBITDA at LTM average FX rates

 2.40  2.71  3.39
Net debt/EBITDA1,2,5
at LTM average FX rates for both net debt and EBITDA
 2.34

 2.68

3.24
EBITDA/Interest3  9.5  8.3  6.8

 

  • 1 2014 adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)
  • 2 2014 and 2015 before special items; 2014 and 2016 pro forma acquisitions
  • 3 2014 and 2015 before special items
  • 4 2016 pro forma Quirónsalud acquisition: 3.2
  • 5 2016 pro forma Quirónsalud acquisition: 3.1
Net debt/EBITDA

At LTM average FX rates for both net debt and EBITDA



1 Pro forma acquisitions; before special items
2 Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)
3 Pro forma excluding advances made under a fiduciary agreement for the acquisition of hospitals from Rhön-Klinikum AG; before special items
4 Before special items
5 Pro forma acquisitions
6 Pro forma Quirónsalud acquisition: 3.1
7 Calculated at expected annual average exchange rates, for both net debt and EBITDA; without large unannounced acquisitions