Fresenius Group Overview

Financing Strategy & Targets

Ensure financial flexibility and optimizing the cost of capital are the main objectives in Fresenius’s financing strategy.

We employ a balanced mix of equity and debt to optimize the average cost of capital. We ensure financial flexibility by using a broad spectrum of financing instruments. Our financing profile is characterized by a wide spread of maturities up to 2032.

Sufficient financial cushion is assured for the Fresenius Group by unused syndicated and bilateral credit lines. In addition, Fresenius SE & Co. KGaA and Fresenius Medical Care AG & Co. KGaA maintain commercial paper programs. The Fresenius Medical Care receivable securitization program offers additional financing options.

In present capital market conditions we optimize our cost of capital if we hold the net debt/EBITDA ratio within a range of 2.5 to 3.0x (before adoption of IFRS 16) and within a range of 3.0 to 3.5x (after adoption of IFRS 16). As of September 30, 2019, the net debt/EBITDA ratio was 3.13x1,2,3,4 (December 31, 2018: 2.711,2). Including the NxStage acquisition which is increasing the net debt/EBITDA ratio in 2019 by ~30 basis points and excluding IFRS 16 effect, Fresenius expects year-end 2019 net debt/EBITDA ratio5 to be around the upper-end of the original self-imposed target corridor of 2.5 to 3.0x.

In line with the Group’s structure, financing for Fresenius Medical Care and for the rest of the Fresenius Group is conducted separately. There are no joint financing facilities and no mutual guarantees.

1 At at LTM average exchange rates for both net debt and EBITDA, pro forma closed acquisitions/divestitures
2 Before special items
3 Including acquisition of NxStage
4 Adjusted for IFRS 16 effect
5 At at annual average exchange rates for both net debt and EBITDA, excluding further potential acquisitions


Net debt/EBITDA

Before special items; pro forma closed acquisitions/divestitures

At LTM average FX rates for both EBITDA and net debt

1 Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

2 Including acquisition of NxStage; adjusted for IFRS 16 effects

3 Calculated at expected annual average exchange rates, for both net debt and EBITDA; including acquisition of NxStage;
without potential unannounced acquisitions; adjusted for IFRS 16 effects (comparable to updated guidance from May 2, 2019)