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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.

  • Increased transparency: In financial reporting we introducted the new business-unit based disclosure at Fresenius Kabi: BioPharma, MedTech, Nutrition, and Pharma. We established the “3+1 strategy” which reflects the differences in the businesses and their growth profiles. This transparency also enables better benchmarks and proper businesses valuations. Furthermore, the deconsolidation of FMC also allows for a clearer look at the performance of our attractive and dynamically growing core business – Fresenius Kabi and Fresenius Helios.
  • Structural productivity: Our groupwide cost savings program progressed well ahead of plan. We over-delivered by more than 40% against our original targets. Due to the excellent progress, we increased the target for the second consecutive year. The new target is to achieve sustainable cost savings of €400 million at EBIT level by 2025.
  • Capital efficiency and returns: The focus on captial efficiency and returns was an important paradigm shift. We deployed our capital rigorously along our strategic pillars and with a clear priority on KPIs focused on returns. The introduction of the new Cash Conversion Rate (CCR) increased the Group’s focus and traction on cash flow generation and cash conversion throughout the company.

Discover more about the deconsolidation of FMC in the first story “Simplification”


Fresenius SE & Co. KGaA
Investor Relations
+49 (0) 6172 608-2485

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