EX-99.2 3 tm2511560d3_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

Fresenius Medical Care AG

 

COMPLETE OVERVIEW OF THE FIRST QUARTER 2025

May 6, 2025

 

 

 

Investor Relations

phone: +49 6172 609 2525

email: ir@freseniusmedicalcare.com

 

Content:

 

Statement of earnings page 2
Segment information page 3
Balance sheet page 4
Cash flow page 5
Revenue development by segment page 6
Key metrics page 7
Reconciliation results excl. special items page 8
Outlook 2025 page 9

 

Disclaimer

 

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, impacts related to COVID-19, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG’s reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG does not undertake any responsibility to update the forward-looking statements in this release.

 

Rounding adjustments applied to individual numbers and percentages may result in these figures differing immaterially from their absolute values. Furthermore, totals and subtotals in tables may differ slightly from unrounded figures due to rounding in accordance with commercial rounding conventions.

 

Copyright by Fresenius Medical Care AG

 

 

 

 

 

Statement of earnings

 

in € million, except share data, unaudited  Three months ended March 31, 
   2025   2024   Change   Change
at cc		 
Total revenue   4,881    4,725    3.3%   1.2%
Costs of revenue   3,697    3,551    4.1%   2.0%
Selling, general and administrative expense   751    776    -3.2%   -4.9%
Research and development expense   43    48    -9.0%   -10.1%
Income from equity method investees   (48)   (29)   65.8%   65.9%
Other operating income   (141)   (113)   24.5%   24.1%
Other operating expense   248    246    0.4%   -0.4%
Operating income   331    246    34.7%   31.6%
Operating income excl. special items 1   457    403    13.4%   10.9%
                     
Interest income   (15)   (16)   -4.4%   -2.9%
Interest expense   96    104    -7.8%   -9.8%
Interest expense, net   81    88    -8.4%   -11.1%
Income before income taxes   250    158    58.8%   55.5%
Income tax expense   61    40    54.5%   51.6%
Net income   189    118    60.3%   56.8%
Net income attributable to noncontrolling interests   38    47    -18.9%   -21.2%
Net income attributable to shareholders of FME AG   151    71    113.1%   108.8%
Net income attributable to shareholders of FME AG excl. special items 1        246           188           31.3 %        28.6 %
                     
Weighted average number of shares   293,413,449    293,413,449           
                     
Basic earnings per share  €0.52   €0.24    113.1%   108.8%
Basic earnings per ADS  €0.26   €0.12    113.1%   108.8%
                     
Operating income   331    246    34.7%   31.6%
Depreciation, amortization and impairment loss   395    512    -23.0%   -24.5%
EBITDA   726    758    -4.3%   -6.3%
                     
In percent of revenue                    
Operating income margin   6.8%   5.2%          
Operating income margin excl. special items 1   9.4%   8.5%          
EBITDA margin   14.9%   16.1%          

 

 

1 For a reconciliation of special items, please refer to the table on page 8.

 

Statement of earnings Page 2 of 9 May 6, 2025

 

 

 

 

Segment information

 

unaudited  Three months ended March 31, 
   2025   2024   Change   Change
at cc		 
Total                    
Revenue in € million   4,881    4,725    3.3%   1.2%
Operating income in € million   331    246    34.7%   31.6%
Operating income in € million excl. special items 1     457       403       13.4 %     10.9 %
Operating income margin   6.8%   5.2%          
Operating income margin excl. special items 1     9.4 %     8.5 %                
Days sales outstanding (DSO) 2   67    76           
Employees (headcount)   112,035    117,128           
                     
Care Delivery segment                    
Revenue in € million   3,857    3,788    1.8%   -0.9%
Operating income in € million   323    189    71.4%   64.3%
Operating income in € million excl. special items 1     360       348       3.6 %     -0.3 %
Operating income margin   8.4%   5.0%          
Operating income margin excl. special items 1     9.3 %     9.2 %                
Days sales outstanding (DSO) 2   61    71           
                     
Care Enablement segment                    
Revenue in € million   1,367    1,297    5.4%   4.9%
Operating income in € million   94    70    34.3%   32.9%
Operating income in € million excl. special items 1     114       76       50.1 %     48.7 %
Operating income margin   6.9%   5.4%          
Operating income margin excl. special items 1     8.3 %     5.9 %                
Days sales outstanding (DSO) 2   91    92           
                     
Inter-segment eliminations 3                    
Revenue in € million   (343)   (360)   -5.0%   -7.2%
Operating income in € million   (5)   1    n.a.    n.a. 
Operating income in € million excl. special items 1     (5 )     (3 )     77.1 %     71.8 %
                     
Corporate                    
Operating income in € million   (81)   (14)   494.9%   444.8%
Operating income in € million excl. special items 1     (12 )     (18 )     -31.4 %     -55.7 %

 

 

1 For a reconciliation of special items, please refer to the table on page 8.

2 Includes receivables related to assets held for sale.

3 The Company transfers products between segments at fair market value. The associated internal revenues and expenses and all other consolidation of transactions are included within “Inter-segment eliminations”.

 

cc = constant currency. Changes in revenue, operating income and net income attributable to shareholders of FME AG include the impact of changes in foreign currency exchange rates. We calculate and present these financial measures using both IFRS Accounting Standards and at constant exchange rates to show changes in these metrics and other items without giving effect to period-to-period currency fluctuations. Under IFRS Accounting Standards, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant Currency".

 

Segment informationPage 3 of 9 May 6, 2025

 

 

 

 

 

 

Balance sheet

 

in € million, except for net leverage ratio, unaudited  March 31,   December 31, 
   2025   2024 
Assets        
Cash and cash equivalents   1,071    1,180 
Trade accounts and other receivables from unrelated parties   3,565    3,367 
Inventories   2,079    2,068 
Other current assets   1,243    1,308 
Goodwill and intangible assets   15,971    16,541 
Right-of-use assets   3,475    3,612 
Other non-current assets   5,331    5,491 
Total assets   32,735    33,567 
           
Liabilities and equity          
Accounts payable to unrelated parties   769    904 
Other current liabilities   4,678    4,756 
Non-current liabilities   11,783    12,138 
Total equity   15,505    15,769 
Total liabilities and equity   32,735    33,567 
           
Equity/assets ratio   47%   47%
           
Debt and lease liabilities          
Short-term debt from unrelated parties   95    2 
Current portion of long-term debt   591    575 
Current portion of lease liabilities from unrelated parties   603    616 
Current portion of lease liabilities from related parties   25    25 
Long-term debt, less current portion   6,149    6,261 
Lease liabilities from unrelated parties, less current portion   3,275    3,412 
Lease liabilities from related parties, less current portion   83    88 
Debt and lease liabilities included within liabilities directly associated with assets held for sale     11       9  
Total debt and lease liabilities   10,832    10,988 
Minus: Cash and cash equivalents 1   (1,079)   (1,185)
Total net debt and lease liabilities   9,753    9,803 
           
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS Accounting Standards financial measure          
Net income   812    741 
Income tax expense   338    316 
Interest income   (71)   (72)
Interest expense   399    407 
Depreciation and amortization   1,530    1,536 
Adjustments 2   432    450 
Annualized adjusted EBITDA   3,440    3,378 
           
Net leverage ratio   2.8    2.9 

 

 

1    Includes cash and cash equivalents included within assets held for sale.

 

2    Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Syndicated Credit Facility (2025: -€9 M; 2024: -€23 M), non-cash charges, primarily related to pension expense (2025: €52 M; 2024: €52 M), impairment loss (2025: €94 M; 2024: €207 M) and special items, including costs related to the FME25 Program (2025: €167 M; 2024: €164 M), Legacy Portfolio Optimization (2025: €103 M; 2024: €113 M), Legal Form Conversion Costs (2025: €8 M; 2024: €9 M) and Humacyte Remeasurements (2025: €17 M; 2024: -€72 M).

 

Balance SheetPage 4 of 9May 6, 2025

 

 

 

 

 

Cash flow statement

 

in € million, unaudited  Three months ended March 31, 
   2025   2024 
Operating activities          
Net income   189    118 
Depreciation, amortization and impairment loss   395    512 
Change in trade accounts and other receivables from unrelated parties   (307)   (669)
Change in inventories   (71)   (41)
Change in other working capital and non-cash items    (43)   207 
Net cash provided by (used in) operating activities   163    127 
In percent of revenue   3.3%   2.7%
           
Investing activities          
Purchases of property, plant and equipment and capitalized development          
costs   (146)   (134)
Proceeds from sale of property, plant and equipment   4    5 
Capital expenditures, net   (142)   (129)
           
Free cash flow   21    (2)
In percent of revenue   0.4%   0.0%
           
Acquisitions and investments, net of cash acquired, and purchases of          
intangible assets   (6)   0 
Investments in debt securities   (12)   0 
Proceeds from divestitures, net of cash disposed   19    40 
Proceeds from sale of debt securities   33    21 
Free cash flow after investing activities   55    59 

 

Cash flowPage 5 of 9May 6, 2025

 

 

 

 

 

Revenue development by segment

 

                       Same market 
               Change   Organic   treatment 
in € million, unaudited  2025   2024   Change   at cc   growth   growth 1 
Three months ended March 31,                        
Total revenue  4,881   4,725   3.3%  1.2%  5.4%    
                         
Care Delivery segment  3,857   3,788   1.8%  -0.9%  4.2%  0.8%
Thereof: U.S.  3,302   3,102   6.4%  3.2%  4.1%  0.0%
Thereof: International  555   686   -19.1%  -19.0%  4.8%  2.5%
                         
Care Enablement segment  1,367   1,297   5.4%  4.9%  4.9%    
                         
Inter-segment eliminations  (343)  (360)  -5.0%  -7.2%        

 

 

1 Same market treatment growth = organic growth less price effects          

 

Health care services and health care products revenue by segment

 

   2025       2024 
   Care
Delivery		   Care
Enablement		   Inter-
segment		       Care Delivery   Care
Enablement		   Inter-
segment		     
in € million, unaudited  segment   segment   eliminations   Total   segment   segment   eliminations   Total 
Three months ended March 31,                                
Health care services revenue  3,780   —   —   3,780   3,748   —   —   3,748 
Health care products revenue  77   1,024   —   1,101   40   937   —   977 
Inter-segment revenue  —   343   (343)  —   —   360   (360)  — 
Revenue  3,857   1,367   (343)  4,881   3,788   1,297   (360)  4,725 

 

Revenue development by segmentPage 6 of 9May 6, 2025

 

 

 

 

 

Key metrics Care Delivery segment

 

unaudited          Three months ended March 31, 2025         
       Growth           Growth       Growth 
   Clinics   in %
yoy		   Net change
in clinics 1		   Patients   in %
 yoy		   Treatments   in %
yoy		 
Total  3,674   -5%  (1)  299,358   -8%  11,007,408   -10%
Thereof: U.S.  2,623   0%  (1)  205,662   0%  7,548,182   -1%
Thereof: International  1,051   -16%  0   93,696   -21%  3,459,226   -26%

 

 

1 Net change in clinics (acquired, de novo, combined, closed and sold) in comparison to December 31, 2024.

 

yoy = year-on-year

 

Key metricsPage 7 of 9May 6, 2025

 

 

 

 

 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS Accounting Standards financial measures for comparability with the Company´s outlook

  

         Special items                             Special items                     
in € million, except share data, unaudited  Results
2025		   FME25
Program		   Legacy
Portfolio
Optimiza-
tion1		   Legal
Form
Conversion
Costs		   Humacyte
Remeasure-
ments		   Sum of
special
items		    Results
2025
excl.
special
items		    Currency
translation
effects		    Results
2025
excl.
special
items
at cc		    Results
2024		    FME25
Program		    Legacy
Portfolio
Optimiza-
tion1		    Legal
Form
Conversion
Costs		    Humacyte
Remeasure-
ments		    Sum of
special
items		    Results
2024
excl. special
items		    Change
excl. special
items		    Change
excl. special
items
at cc		 
Three months ended March 31,                                                                                          
Total revenue   4,881    —    —    —    —    —    4,881    (99)   4,782    4,725    —    —    —    —    —    4,725    3.3%   1.2%
Care Delivery segment   3,857    —    —    —    —    —    3,857    (101)   3,756    3,788    —    —    —    —    —    3,788    1.8%   -0.9%
Thereof: U.S.   3,302    —    —    —    —    —    3,302    (102)   3,200    3,102    —    —    —    —    —    3,102    6.4%   3.2%
Thereof: International   555    —    —    —    —    —    555    1    556    686    —    —    —    —    —    686    -19.1%   -19.0%
Care Enablement segment   1,367    —    —    —    —    —    1,367    (6)   1,361    1,297    —    —    —    —    —    1,297    5.4%   4.9%
Inter-segment eliminations   (343)   —    —    —    —    —    (343)   8    (335)   (360)   —    —    —    —    —    (360)   -5.0%   -7.2%
                                                                                           
EBITDA   726    28    17    0    74    119    845    (18)   827    758    26    27    1    (15)   39    797    6.0%   3.8%
                                                                                           
Total operating income   331    28    24    0    74    126    457    (11)   446    246    28    143    1    (15)   157    403    13.4%   10.9%
Care Delivery segment   323    15    22    —    —    37    360    (14)   346    189    12    147    —    —    159    348    3.6%   -0.3%
Care Enablement segment   94    11    2    —    7    20    114    (1)   113    70    16    0    —    (10)   6    76    50.1%   48.7%
Inter-segment eliminations   (5)   —    —    —    —    —    (5)   0    (5)   1    —    (4)   —    —    (4)   (3)   77.1%   71.8%
Corporate   (81)   2    —    0    67    69    (12)   4    (8)   (14)   0    0    1    (5)   (4)   (18)   -31.4%   -55.7%
                                                                                           
Interest expense, net   81    —    —    —    —    —    81    (3)   78    88    —    —    —    —    —    88    -8.4%   -11.1%
                                                                                           
Income tax expense   61    8    4    0    19    31    92    (3)   89    40    8    36    0    (4)   40    80    14.7%   12.5%
                                                                                           
Net income attributable to noncontrolling interests   38    —    —    —    —    —    38    0    38    47    —    —    —    —    —    47    -18.9%   -21.2%
                                                                                           
Net income2   151    20    20    0    55    95    246    (5)   241    71    20    107    1    (11)   117    188    31.3%   28.6%
                                                                                           
Basic earnings per share  €0.52   €0.07   €0.07   €0.00   €0.18   €0.32   €0.84   €(0.02)  €0.82   €0.24   €0.07   €0.37   €0.00   €(0.04)  €0.40   €0.64    31.3%   28.6%

 

 

1 2025: mainly comprise severance payments and the impairment of goodwill resulting from the measurement of assets held for sale; 2024: mainly comprise the impairment of intangible and tangible assets resulting from the measurement of assets held for sale as well as losses from divestitures. 

2 Attributable to shareholders of FME AG.

 

Reconciliation results excl. special itemsPage 8 of 9May 6, 2025

 

 

 

 

 

Outlook 2025

 

        Outlook 2025
    Results 2024   (at Constant Currency)
Revenue1   €19,336 M   Positive to a low-single digit percentage rate growth
Operating income1   €1,797 M   High-teens to high-twenties percentage rate growth

 

 

1 Outlook 2025 is based on the assumptions outlined in the earnings release for the fourth quarter and full year of 2024 and excludes special items. Special items include the costs related to the FME25 Program, the impacts from Legacy Portfolio Optimization, the Legal Form Conversion Costs, the Humacyte Remeasurements and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of providing the outlook. The growth rates are based on the results 2024 excluding the costs related to the FME25 Program (€180 M for operating income), the impacts from Legacy Portfolio Optimization (€288 M for operating income), the Legal Form Conversion Costs (€9 M for operating income) and the Humacyte Remeasurements (-€72 M for operating income).

 

Outlook 2025Page 9 of 9May 6, 2025