Fresenius publishes financial results for the second quarter and first half of 2022 in line with preliminary results

• Business development marked by significantly worsening headwinds at Fresenius Medical Care and increased macroeconomic challenges
• Fresenius Medical Care Business development impacted by unprecedented U.S. labor market situation and worsening macroeconomic environment
• Fresenius Kabi with solid organic sales growth despite tough prior-year-quarter
• Fresenius Helios with continued good admissions growth in Germany and Spain
• Fresenius Vamed still impacted by ongoing headwinds; service business supported by increasing elective treatment activity
• Cost and efficiency program evolving according to plan

FY/22 Group guidance

As announced on July 27, 2022, at constant currency, the Company now anticipates Group sales¹ to grow in a low-to-mid single-digit percentage range (previously: mid-single digit percentage range) and Group net income^2,3 to decline in a low-to-mid single-digit percentage range (previously: increase in a low-single-digit percentage range).

Without the already closed acquisitions of Ivenix and the already completed acquisition of a majority stake in mAbxience as well as any further potential acquisitions, Fresenius expects the net debt/EBITDA⁴ ratio (December 31, 2021: 3.51x⁵) to be slightly above the top end of the self-imposed target corridor of 3.0x to 3.5x by the end of 2022.

Assumptions for guidance FY/22

Due to the meaningfully increased uncertainty and volatility related to the war in Ukraine, the ongoing impacts of the COVID-19 pandemic, and a rapidly worsening global macro-economic development, Fresenius now expects significantly more pronounced headwinds in 2022 from supply chain disruptions and cost inflation, including energy prices. Furthermore, Fresenius expects significant negative effects from ongoing labor shortages and associated wage inflation, especially at Fresenius Medical Care in the U.S.

The war in Ukraine is directly and indirectly affecting Fresenius Group operations. The direct adverse effects of the war amounted to €20 million at net income⁶ level of Fresenius Group in H1/22 and are treated as a special item. Fresenius will continue to closely monitor the potential further consequences of the war, including balance sheet valuations. The guidance does not consider a significant disruption of gas or electricity supplies in Europe.

COVID-19 will continue to impact Fresenius Group operations in 2022. An unlikely but possible significant deterioration of the situation triggering containment measures that could have a significant and direct impact on the health care sector without any appropriate compensation is not reflected in the Group’s FY/22 guidance.

Furthermore, the updated assumptions for Fresenius Medical Care’s FY/22 guidance are also fully applicable to Fresenius Group’s FY/22 guidance. All of these assumptions are subject to considerable uncertainty. The acquisitions of Ivenix and of the majority stake in mAbxience as well as any further potential acquisitions remain excluded from guidance.

Cost and efficiency program

The Group’s cost and efficiency program is running according to plan and Fresenius confirms its increased savings targets provided in February 2022 of at least €150 million p.a. after tax and minority interest in 2023. For the years thereafter, a further significant increase in sustainable cost savings is expected.

¹ FY/21 base: €37,520 million
² Net income attributable to shareholders of Fresenius SE & Co. KGaA
³ FY/21 base: €1,867 million; before special items; FY/22: before special items
⁴ At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; excluding further potential acquisitions; before special items; including lease liabilities
⁵ At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures; before special items; including lease liabilities
⁶ Net income attributable to shareholders of Fresenius SE & Co. KGaA