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Our Fresenius Financial Framework
Over the past year, we have delivered consistent performance and paved the way to accelerate performance in 2024. Last year our finance agenda focused on structural productivity, transparancy as well as capital efficiency and returns.
Our Fresenius Financial Framework (F3) sets ambitious EBIT margin bands for our Operating Companies and Investment Companies. They serve as a benchmark when reviewing businesses, measuring performance and planning for the future. On Group level, the framework focuses on stringent capital allocation.
Our Operating Companies Fresenius Kabi and Fresenius Helios both delivered a consistent performance and met their 2023 targets. Their results were within their respective framework bands - both in terms of EBIT margins and organic growth. Hence, #FutureFresenius and the focus on our Operating Companies is paying off with quarter-by-quarter consistent and robust delivery!
The emphasis on capital efficiency and returns was an important paradigm shift due to our framework. And with the introduction of the cash conversion rate, we put a clear focus on cash as an organization. Improving our leverage profile is another key part of our F3. In the second half of 2023, we made excellent progress improving our leverage ratio by more than 40 basis points, also due to very tight capital allocation and a strong focus on cash generation. Moreover, we executed a number of portfolio measures – divestments and the deconsolidation of FMC in line with our strategic focus. And we significantly overachieved our 2023 cost savings target and now raised our 2025 target.
1 Cash conversion rate – defined as adjusted FCFbIT / EBIT (before special items) All figures before special items
Our performance highlights in 2023
We sharpened our focus and emphasized our performance – these are our highlights:
Operating Companies
Operating Companies at top-end of their structural growth bands in 2023
Structural productivity
Cost savings over-delivered by more than 40% – FY/25 target raised
Cash and ROIC focus
Rigorous focus on ROIC; Cash focus already reflected in improved cashflow development
Vamed turnaround
Vamed turnaround progressing well – second consecutive quarter in black
Our financial agenda
In 2023, we increased financial transparency, we exceeded our structural productivity targets, and made an important paradigm shift in how we measure our performance with our focus on capital efficiency and returns.
Discover more about the deconsolidation of FMC in the first story “Simplification”
Contact
Fresenius SE & Co. KGaA
Investor Relations
+49 (0) 6172 608-2485
ir-fre@fresenius.com
