Fresenius Group Overview

Goals and Strategy

Our goal is to strengthen the position of ­Fresenius as a leading global provider of products and therapies for critically and chronically ill people. With our four business segments, we are concentrating on a limited number of health care areas. As a result of this clear focus, we have developed unique competencies. We are following our long-term strategies consistently and are seizing our oppor­tunities.

Our strategic focus

Fresenius invests in and manages a diversified portfolio of health care businesses that create value. With our four business segments we focus on a defined number of health care areas. We continuously develop those business areas and strive to assume leading positions in the respective health care markets and segments. Fresenius has defined strategic priorities to pursue its goal to strengthen the position of the Company as a leading global provider of products and therapies for critically and chronically ill patients:

  • Profit from megatrends: gearing businesses towards the megatrends health and demographics
  • Create value: long-term value creation by allocating capital to profitable growth areas
  • Act responsibly: commitment to responsible management and ethical business principles
  • Collaborate: fostering intragroup cooperation to leverage synergies

Our core competencies

  • Quality

    At Fresenius, the patient always comes first. We commit ourselves to strive for the highest quality in our products, services, and therapies. All business segments make an overall contribution to increasing the quality and efficiency of health care. This enables access to high-quality and affordable medical care for a growing number of people.

    For Fresenius Medical Care, customer health and product safety mean creating a safe and healthy clinical environment. The quality and safety of its products and services are the foundation of Fresenius Medical Care’s success.

    Fresenius Kabi’s corporate philosophy “caring for life” describes the company’s commitment to improving the quality of life of its patients. The quality and safety of its products and services is hence of paramount importance to Fresenius Kabi.

    Fresenius Helios places great importance on high standards of treatment quality, hygiene, patient safety, and care in its hospitals.

    Also at Fresenius Vamed, quality processes are designed based on established standards.

  • Innovation

    Fresenius’ goal is to continue building on its strength in technology, its competence and quality in patient care, and its ability to manufacture cost-effectively. Developing products and systems that provide a high level of safety and user-friendliness and enable tailoring to individual patient needs is an inherent part of our strategy of sustainable and profitable growth. We will continue to develop ever more effective products and treatment methods for critically and chronically ill patients to offer best-in-class medical standards.

    In 2019, Fresenius Medical Care, for example, strengthened its position in home dialysis and became a world leader by acquiring the U.S.-based medical technology and services company NxStage. Fresenius Medical Care also strives to identify new opportunities in value-added technologies and approaches on an ongoing basis, for example through the Fresenius Medical Care Ventures fund. Fresenius Kabi is currently developing biosimilars with a focus on oncology and autoimmune diseases, making affordable treatments accessible for even more patients. Fresenius Helios’ goal is to foster knowledge sharing across its international hospital network and use innovation to develop the best health care services and therapies for its patients. Moreover, Fresenius Helios is driving forward initiatives focused on occupational medicine for employees, prevention programs, or the reduction of waiting times for appointments with specialists, for example by offering digital services. Fresenius Vamed’s goal is to realize further projects in integrated health care services and to support patient-oriented health care systems more efficiently.

     

  • Improve profitability

    Fresenius is committed to continuously improving Group profitability. We foster intragroup coordination and collaboration, seeking both sales growth and efficiency. To contain costs, we particularly concentrate on making our production plants more efficient, exploiting economies of scale, leveraging the existing marketing and distribution infrastructure more intensively, and practicing strict cost control. We continue to identify specific measures that optimize our portfolio and make Fresenius an even more effective organization. By focusing on our operating cash flow and employing efficient working capital management, we will increase our investment flexibility and improve our balance sheet ratios. Another goal is to optimize our weighted average cost of capital (WACC) by deliberately employing a balanced mix of equity and debt funding. In the present capital market conditions, we believe we optimize our cost of capital if we hold the net debt / EBITDA ratio within a range of 3.0 to 3.5 (including IFRS 16 adoption).

  • Drive internationalization

    Fresenius’ goal is to ensure and expand its long-term position as a leading international provider of products and services in the health care industry. To this end, and to geographically expand our business, we plan to grow organically as well as through selective small to medium-sized acquisitions, complementing our existing portfolio. We are constantly seeking new above-average growth opportunities in developing as well as in emerging countries. Our aim is to strengthen our activities in these regions and successively introduce further products from our portfolio into these markets.

    Fresenius Medical Care is the worldwide leader in dialysis, with a strong market position in the United States. Future opportunities in dialysis will arise from further expansion in dialysis care and products worldwide.

    Fresenius Kabi is the market leader in infusion therapy in Europe and Latin America. In Europe and the key markets in Asia-Pacific (including China) and Latin America, Fresenius Kabi is the leader in the clinical nutrition market. In the United States, Fresenius Kabi is one of the leading players in the market for generic IV drugs. In addition, Fresenius Kabi is one of the most important providers of transfusion technology. Fresenius Kabi plans to roll out products from its existing portfolio to the United States and other growth markets. Market share is to be expanded further through the launch of new products in the field of IV drugs, infusion therapy, clinical nutrition, and medical devices / transfusion technology.

    With 86 hospitals, Fresenius Helios operates in nearly all of Germany. Building on this, Fresenius Helios is now in the position to develop new patient care models. To benefit from the trend towards outpatient treatment, Helios Germany has been expanding outpatient service offerings in a separate division. Helios Spain has attractive growth opportunities through the expansion and construction of hospitals, and potential for further consolidation in the highly fragmented private hospital market in Spain. Helios exploits upcoming opportunities for cross-border synergies in areas such as laboratory services and joint purchasing. The cross-border exchange of experience and knowledge is gradually creating the economic prerequisites for the further internationalization of our hospital business.

    Fresenius Vamed will further expand its position as a global specialist for projects and services for hospitals and other health care facilities. With the integration of Fresenius Helios’ German inpatient rehabilitation business, Fresenius Vamed is strengthening its position as one of the leading providers of private rehabilitation services in Europe. Furthermore, the collaboration with Fresenius Helios will be further intensified. This applies, for example, to technical services or purchasing, where Fresenius Helios is cooperating with Fresenius Vamed for selected products.

  • Employees

    The commitment of our more than 290,000 employees worldwide is key for the success and sustained growth of Fresenius. We firmly believe in a culture of diversity, as we are convinced that different perspectives, opinions, experiences, and values enable Fresenius to continue successfully growing as a global health care company. To tackle the upcoming challenges, attracting new employees is key for the growth of our company. We regularly participate in recruiting events and career fairs to attract new talent, and invite our management to meet future Fresenius employees at “Meet the Board”. Not only do we try to attract new talent, we also want to retain and develop our people at Fresenius. We offer a variety of flexible workingtime models and incentive programs to ensure that our longterm needs for highly qualified employees are met. Furthermore, we offer our employees opportunities to develop their careers in an international and dynamic environment.