Fresenius with solid start to 2022 despite macroeconomic challenges

Stephan Sturm, CEO of Fresenius, said: 'We have made a solid start into 2022 - somewhat better, even, than expected at Fresenius Helios and Fresenius Kabi. The first quarter was burdened by the ongoing coronavirus pandemic, the war in Ukraine, supply chain bottlenecks and, above all, cost increases that are in some cases significant. We will have to watch all these factors very closely. Still, our businesses developed well. With the announced transactions at Fresenius Kabi and Fresenius Medical Care we've taken important steps in the realization of our growth strategy, thereby improving the foundations for our future business success. We therefore continue to expect overall healthy sales and earnings growth, and to look ahead with confidence to the rest of our business year and beyond.'

Fresenius Medical Care in line with its expectations countering significant headwinds

Fresenius Kabi's solid financial performance based on strong Emerging Markets growth

Fresenius Helios' strong performance driven by growing admissions in Germany and Spain

Fresenius Vamed with continued progress towards normal operations, very good performance in the service business

Ongoing headwinds from cost inflation and supply chain challenges, with uncertainty and volatility fueled by the Ukraine war

Guidance for 2022 confirmed

Fresenius appoints Sara Hennicken as Chief Financial Officer - Rachel Empey to leave company at own request1

Dr. Carla Kriwet to succeed Rice Powell on January 1, 2023, as Chief Executive Officer of Fresenius Medical Care and member of the Fresenius Management Board1

FY/22 Group guidance confirmed

For FY/22, Fresenius confirms its guidance and projects sales growth1 in a mid-single-digit percentage range in constant currency. Net income2,3 is expected to grow in a low-single-digit percentage range in constant currency. Implicitly, net income2 for the Group excluding Fresenius Medical Care is also expected to grow in a low-single-digit percentage range in constant currency.

Without further acquisitions4, Fresenius projects an improvement of the net debt/EBITDA5 ratio (December 31, 2021: 3.51x6) into the self-imposed target corridor of 3.0x to 3.5x by the end of 2022. Fresenius expects the net debt/EBITDA ratio to slightly increase once the acquisitions of Ivenix and the majority stake in mAbxience are closed.

The Group's cost and efficiency program is evolving according to plan and Fresenius confirms its increased savings targets provided in February 2022 of at least EUR150 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: EUR37,520 million

2 Net income attributable to shareholders of Fresenius SE & Co. KGaA

3 FY/21 base: EUR1,867 million; before special items; FY/22: before special items

4 Cut-off date 22 February 2022

5 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

6 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures;

before special items; including lease liabilities

For a detailed overview of special items please see the reconciliation tables on pages 18-19 in the PDF.

Assumptions for guidance FY/22

COVID-19 will continue to impact Fresenius' operations in 2022. Fresenius expects COVID-19 case numbers to decline going forward and consequently the number of elective treatments and staff availability to improve. 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.

The war in Ukraine is affecting Fresenius Group's operations. The adverse effect of the war amounted to EUR14 million at net income level of Fresenius Group in the first quarter and is treated as a special item. Fresenius will continue to monitor closely the potential effects of the war.

With the increased uncertainty and volatility related to the Ukraine war, Fresenius now expects more pronounced cost inflationary effects and supply chain disruptions in 2022.

The Management Board assumes an unchanged corporate tax rate in the United States.

Furthermore, the 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 recently announced acquisitions of Ivenix and the majority stake in mAbxience as well as any further potential acquisitions are excluded from guidance.

5% sales increase in constant currency

Group sales increased by 8% (5% in constant currency) to EUR9,720 million (Q1/21: EUR8,984 million). Organic growth was 3%. Acquisitions/divestitures contributed net 2% to growth. Currency translation increased sales growth by 3%. Excluding estimated COVID-19 effects1, Group sales growth would have been 5% to 6% in constant currency (Q1/21: 4% to 5%).

3% net income2,3 growth in constant currency

Group EBITDA before special items increased by 2% (-2% in constant currency) to EUR1,658 million (Q1/212: EUR1,631 million). Reported Group EBITDA was EUR1,595 million (Q1/21: EUR1,628 million).

Group EBIT before special items decreased by 1% (-5% in constant currency) to EUR996 million (Q1/212: EUR1,009 million) driven by the COVID-19-related excess mortality among Fresenius Medical Care's patients as well as elevated labor, material and logistic costs. The EBIT margin before special items was 10.2% (Q1/212: 11.2%). Reported Group EBIT was EUR902 million (Q1/21: EUR1,006 million).

Group net interest before special items improved to -EUR119 million (Q1/212: -EUR137 million) mainly due to successful refinancing activities. Reported Group net interest also improved to -EUR118 million (Q1/21: -EUR137 million).

Group tax rate before special items was 22.7% (Q1/212: 22.8%) while the reported Group tax rate was 23.6% (Q1/21: 22.8%).

Noncontrolling interests before special items were -EUR216 million (Q1/212: -EUR237 million) of which 88% were attributable to the noncontrolling interests in Fresenius Medical Care. Reported noncontrolling interests were -EUR186 million (Q1/21: -EUR236 million).

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Senior Vice President Corporate Communications

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