Results of operations, financial position, assets and liabilities

In the 2023 fiscal year, Fresenius deconsolidated the Fresenius Medical Care business segment by changing the legal form of Fresenius Medical Care AG & Co. KGaA (FMC-AG & Co. KGaA) into a stock corporation ("Aktiengesellschaft"). On July 14, 2023, an Extraordinary General Meeting of Fresenius Medical Care AG & Co. KGaA approved the proposal of conversion of the legal form into a German stock corporation. Upon registration with the commercial register on November 30, 2023, the conversion of the legal form became effective.

For the consolidated financial statements as of December 31, 2023, as well as for the subsequent reporting periods, the specific accounting standards apply as follows.

Following the approval of the legal form conversion by the Extraordinary General Meeting of Fresenius Medical Care AG & Co. KGaA, Fresenius Medical Care was classified in accordance with IFRS 5 from July 14, 2023. Since the change in legal form was entered in the commercial register on November 30, 2023, the investment in Fresenius Medical Care has been accounted for at equity in accordance with IAS 28.

The relevant IFRS required valuation of Fresenius Medical Care at fair value. If this value, which mainly corresponds to Fresenius Medical Care's market capitalization and the market value of the non-controlling interests, is below the book value of Fresenius Medical Care's consolidated equity, the Fresenius Group must recognize a non-cash-effective impairment, which is included as a special item.

As part of the IFRS 5 remeasurements until November 30, 2023, a non-cash special item of €2,217 million was recognized in the consolidated financial statements of the Fresenius Group, of which €647 million was attributable to the shareholders of Fresenius SE & Co. KGaA and €1,570 million to the non-controlling interests of the Fresenius Group.

The expenses are reported as part of the net income from Fresenius Medical Care deconsolidated operations under IFRS 5.

In addition, as part of the deconsolidation as at November 30, 2023, a deconsolidation loss of €467 million was recognized, which mainly resulted from the reclassification of currency translation differences from other comprehensive income to consolidated net income and other technical consolidation effects. The expenses are also reported as part of net income from deconsolidated Fresenius Medical Care operations under IFRS 5.

The effects of deconsolidation are not taxable.

IAS 28 requires a full purchase price allocation from the date on which the investment in Fresenius Medical Care is recognized as an associated company. The underlying purchase price is the fair value at the time of registration with the commercial register. The carrying amount of the investment is the proportionate share (November 30, 2023: 32%) of the fair value of the identifiable net assets, including the attributable goodwill.

Upon completion of the deconsolidation, the consolidated net income of Fresenius Medical Care attributable to the Fresenius Group in accordance with its investment (32%) and the corresponding share of depreciation and amortization from the purchase price allocation are reported in the consolidated income statement as Income from the Fresenius Medical Care investment accounted for using the equity method.

Upon completion of the deconsolidation, Fresenius Medical Care is shown in the consolidated balance sheet in accordance with the current share of the Fresenius Group (32%) in the line Fresenius Medical Care investment accounted for using the equity method and adjusted on an ongoing basis for any changes in the equity of Fresenius Medical Care AG.

In accordance with IFRS 5, the prior year figures in the consolidated statement of income and the consolidated statement of cash flows have been adjusted.