Fresenius : Quarterly Financial Report Q1 2024 (IFRS)

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

TABLE OF CONTENTS

		19	Business segments
3	Fresenius Group figures at a glance		19	Fresenius Kabi	30	Consolidated financial statements
			21	Fresenius Helios	30	Consolidated statement of income
			23	Fresenius Vamed	31	Consolidated statement of comprehensive income
4	Shareholder information	25	Employees	32	Consolidated statement of financial position
		25	Changes to the Management Board	33	Consolidated statement of cash flows
		25	Research and development	35	Consolidated statement of changes in equity
5	Interim Group Management Report	25	Rating	37	Consolidated segment reporting first quarter of 2024
5	Strategy and goals	26	Opportunities and risk report
9	Healthcare industry	27	Outlook 2024
9	External factors				38	Notes
10	Results of operations, financial position, assets and liabilities
	10 Revenue
	11 Earnings				60	Financial Calendar

Reconciliation
Reconciliation tables

Investments
Cash flow
Asset and liability structure

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FRESENIUS GROUP FIGURES AT A GLANCE

Fresenius is a global healthcare company. Fresenius offers solutions to the social challenges

posed by a growing and aging population and the resulting need for affordable, high-quality healthcare. Fresenius comprises the Operating Companies Fresenius Kabi and Fresenius Helios as well as

the Investment Companies Fresenius Vamed and Fresenius Medical Care.

Fresenius | Quarterly Financial Report

REVENUE AND EARNINGS

€ in millions

Revenue

Organic growth1

EBITDA3

EBIT3

EBIT margin3

Net income3,4

BALANCE SHEET

€ in millions

Total assets

Equity5

Equity ratio5

Net debt / EBITDA3,6

					Growth
			Growth2		in constant
Q1 / 2024				currency2
5,704			4%		6%
			6%
924			13%		13%
633	15%	15%
11.1%
429	10%	11%

March 31,	Dec. 31,
2024	2023	Change

44,283	45,284	-2%
20,116	19,651	2%
45.4%	43.4%
3.75	3.76

| 1st Quarter 2024

RETURNS
	Q1 / 2024	Q1 / 2023
Cash Conversion Rate (CCR); LTM	1.0	0.9
Return on equity after tax (ROE)3,4,7	7.9%	7.9%
Return on invested capital (ROIC)3,7	5.5%	5.2%

Organic growth rate adjusted for the divestment of the fertility services group Eugin, the hospital stake in Peru, and hyperinflation in Argentina

Growth rate adjusted for the divestment of the fertility services group Eugin, the hospital stake in Peru, and for hyperinflation in Argentina
3 Before special items

Net income attributable to shareholders of Fresenius SE & Co. KGaA
5 Including noncontrolling interests

At LTM average exchange rates for both net debt and EBITDA; pro forma acquisitions / divestitures; including lease liabilities, including Fresenius Medical Care dividend

7 2023: annual return FY / 23

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

SHAREHOLDER INFORMATION

Hopes of interest rate cuts in the near future helped the stock markets in Europe and the U.S. to perform strongly in the first quarter of 2024. The DAX reached a new all-time high and gained around 10% during the first three months.

RELATIVE SHARE PRICE PERFORMANCE VS. INDICES

31.12.2023 = 100%

115

110

105

100

85

01.01.2024		01.02.2024	01.03.2024
	Fresenius share in %		DAX in %	Dow Jones Industrial Average in %	STOXX Europe 600 Health Care in %

DEVELOPMENT IN THE FIRST QUARTER 2024

Latest projections by the European Central Bank (ECB) suggest a slower recovery in the short term than predicted at the end of 2023. In its March 2024 forecast, the ECB now assumes average annual real GDP growth of 0.6% in the euro area in 2024. Nevertheless, economic growth is projected to gradually pick up during 2024, driven by an increase in real disposable income, declining inflation, robust wage growth, and improving terms of trade. Annual average headline HICP (Harmonized Index of Consumer Prices) inflation is currently expected to decrease to 2.3% in 2024. The central bank decided to keep the key interest rate for the euro area at an all-time high for the time being, but indicated that it would consider a rate cut at its next meeting in June.

KEY DATA OF THE FRESENIUS SHARE

Number of shares (March 31 / Dec. 31)

Stock exchange quotation1 in €

High

Low

Period-end quotation closing price

Trading volume (number of shares per trading day) Market capitalization2 in million € (Mar. 31 / Dec. 31)

Xetra closing price on the Frankfurt Stock Exchange

Total number of ordinary shares multiplied by the respective Xetra period-end quotation on the Frankfurt Stock Exchange

Q1 / 2024

563,237,277

29.06

24.54

25.00

1,115,486

14,081

2023Growth

563,237,2770%

31.11-7%

23.465%

28.07-11%

1,286,530-13%

15,810-11%

In its March 2024 forecast update, the Federal Reserve raised its 2024 growth projection for the U.S. economy to 2.1%. The key interest rate range of 5.25 to 5.5% remained unchanged, as did the inflation forecast of 2.4% for 2024.

In this environment, the DAX rose by around 10% during the first quarter of 2024, reaching a new all-time high and at the same time significantly outperforming the Dow Jones Industrial Average which gained around 6%. The Fresenius share closed at €25.00 on 28 March 2024 (last trading day of the first quarter), which corresponds to a decline of around 11% since the end of 2023.

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

INTERIM GROUP MANAGEMENT REPORT

Fresenius raises outlook for fiscal 2024 due to excellent first quarter

Excellent start to 2024: Group outlook raised for FY / 24 due to the excellent first quarter and a better than originally expected operating performance for the remainder
of the financial year 2024: Group organic revenue growth 4 to 7%, EBIT growth in constant currency 6 to 10%.
Strategic portfolio measures concluded: Structured exit from Investment Company Vamed initiated.
Strong organic growth in Group revenue of 6%1 to €5.7 billion in Q1 / 24; Group EBIT increase in constant currency by 15% to €633 million reflects the excellent performance of Operating Companies and the group-wide cost savings progressing ahead of plan.
EPS increases: 11% in constant currency.
Strong operating cash flow development at Fresenius Kabi driven by working capital efficiencies; Fresenius Helios expects catch-up of outstanding receivables in Germany in the course of the year.
Fresenius Kabi shows excellent organic revenue growth of 9%2 and an improved EBIT margin at 15.1% in particular driven by the positive development of the Biopharma business.
Biopharma business picking up: EBIT break-even in Q1 / 24 driven by licensing business at mAbxience; Tyenne with good progress.
Fresenius Helios with solid organic revenue growth of 5%3 and EBIT margin of 11.1%; supported by phasing of energy related government relief funding in Germany and strong operating performance.

STRATEGY AND GOALS

AT THE HEART OF HEALTHCARE

At Fresenius, we are at the heart of healthcare. We offer healthcare products and services for critically and chronically ill individuals, in line with the megatrends of health and demographics. We improve people's lives by providing high-quality and affordable healthcare. In doing so, we consider significant paradigm shifts in the healthcare environment with regards to biologic products and therapies,

technological change, and new forms of data generation, processing, and usage.

Patients are always the focus of our activities. Our goal is to expand Fresenius' position as a leading global provider of products, services, and therapies for critically and chronically ill people. At the same time, we want to grow profitably and use our capital efficiently, in order to create value for our stakeholders and enable us to continue investing in better medicine.

For more efficient and focused management, since the beginning of 2023 we have differentiated between our Operating Companies, Fresenius Kabi and Fresenius Helios, which we own 100%, and our Investment Companies, Fresenius Medical Care and Fresenius Vamed, in which we hold 32% and 77% of the shares, respectively.

In the fiscal year 2023, we deconsolidated the Fresenius Medical Care business segment. Further information can be found in the "Deconsolidation of Fresenius Medical Care" section.

1	Organic growth rate adjusted for the divestment of the fertility services group Eugin, the hospital stake in Peru, and accounting effects related to Argentina hyperinflation.
2	Organic growth rate adjusted for the accounting effects related to Argentina hyperinflation.	5
3	Organic growth rate adjusted for the divestment of the fertility services group Eugin and the hospital stake in Peru.

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

Fresenius operates in key healthcare areas indispensable for critically and chronically ill patients. We continuously develop our business segments and strive to assume leading positions in system-critical healthcare markets and seg- ments. We orient our portfolio towards healthy, profitable growth, a strong focus on margins and capital returns, and the highest ambitions for operational excellence and com- petitiveness.

At Fresenius, we hold ourselves accountable to the highest standards of quality and integrity. All of our business segments make an overall contribution to increasing the quality, affordability, and efficiency of healthcare as well as patient satisfaction. At the same time, we care for our environment by protecting nature and using its resources carefully.

Fresenius Kabi's commitment is to improving the quality of life of its patients. The quality and safety of its products and services is thus of paramount importance to Fresenius Kabi.

Fresenius Helios hospitals are characterized by high standards of treatment quality, hygiene, patient safety, and quality of care.

Fresenius Vamed bases its quality processes on clearly defined and generally established standards.

At Fresenius, we combine our medical expertise with extensive production capacities, and clinical practice with technology know-how to continuously improve therapies for our patients. We will continue building on our strength in technology, our competence and quality in patient care, and our ability to manufacture cost-effectively. Developing products and systems that provide a high level of safety

and user-friendliness and enable tailoring to individual patient needs is an inherent part of our strategy of sustainable and profitable growth.

We plan to develop more effective products and treatment methods for critically and chronically ill patients in order to offer best-in-class medical standards. Digitalization is playing an increasingly important role -- whether it is in healthcare facilities or in production. It drives innovative technologies and treatment concepts and can contribute to solving numerous challenges in the healthcare system (see Annual Report 2023 p. 137 ff.).

The commitment of our more than 190,000 employees worldwide is key for the success and sustained growth of Fresenius. We firmly believe in a culture of diversity, as we are convinced that different perspectives, opinions, experi- ences, and values enable Fresenius to continue successfully growing as a global healthcare company.

#FUTUREFRESENIUS

In the 2024 fiscal year, we continue to advance our #Fu- tureFresenius program in order to transform our Group and position it for the coming decades. We already made great progress, particularly in the structural progression of the Group.

The healthcare industry has a long runway for growth, which will be accelerated by quickly evolving technologies, new therapies such as biopharmaceuticals, more and more professional steering of patient journeys, and a true digital revolution. We want Fresenius to be at the forefront of these trends and have thus charted our course to continued system relevance in our businesses.

The first step of this journey was a Reset: strengthening our return focus, driving structural productivity, and creating change momentum across the organization. We are now in the Revitalize phase, driving our continuous portfolio optimization and gearing Fresenius towards the pursuit of growth verticals.

In the 2023 fiscal year, the deconsolidation of Fresenius Medical Care and targeted divestments sharpened the focus of the portfolio and achieved structural simplification. Clear structures and responsibilities were also defined with the initiation of a new operating model. This framework will enable us to steer and improve performance in a more targeted manner in future based on the Fresenius Financial Framework.

PORTFOLIO FOCUS

Going forward, we want to increasingly orient our portfolio to three platforms: (Bio)Pharma --including clinical nu-

trition, MedTech, and Care Provision. With these plat- forms, we cater to major trends in healthcare and become a more therapy-focusedcompany. The health and quality of life of our patients who we serve with high-quality,affordable products and services is at the core. At the same time, our platforms address attractive value pools in healthcare, which will provide opportunities for future profitable growth.

We will make growth investments for the healthcare products and services of tomorrow in our Operating Companies Fresenius Kabi and Fresenius Helios.

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

Across all segments, we are seeking opportunities to strengthen the focus on core business cells, in order to safeguard a sound capital structure and availability of capital for future growth prospects.

As part of our ongoing portfolio optimization, we com- pleted, among others, the sale of the Eugin Group on Janu- ary 31, 2024. The disposal of the majority interest in a co- holding entity of the Clínica Ricardo Palma hospital in Lima, Peru, and the resulting exit from the Peruvian hospital business were completed on April 23, 2024. On March 1, 2024, Fresenius Kabi closed the transfer of its plant in Halden, Norway, to HP Halden Pharma AS, a company of the Prange Group.

Within the Fresenius Group, we will -- under our operating model -- provide strategic direction, effective governance and risk management and provide targeted services to the benefit of our segments and the overall capital efficiency of the Group.

The exit from the Investment Company Vamed in May 2024 completes the strategic portfolio restructuring as part of #FutureFresenius. The exit is carried out in three parts:

The sale of 67% of Vamed's rehabilitation business to the private equity company PAI, announced in May 2024. Closing of this transaction is expected in the second half of 2024
Vamed's operations in Austria to be sold to an Austrian consortium of the construction companies Porr and Strabag for a total purchase price of €90 million.
The Health Tech Engineering (HTE) segment, which is responsible for the international project business and ac- counts for around 15% of Vamed's revenue, will gradually be scaled back in an orderly manner. The process should largely be completed by 2026. Until then, the business will be reported as a special item outside Fresenius' core busi- ness. Current project contracts will be fulfilled.

Vamed's High-End-Services (HES) which offers services for Fresenius Helios and other hospitals, will be transferred to Fresenius. HES is a stable business with good growth prospects and accounts for around 30% of Vamed's revenues. The profitability of HES is in the mid-single-digit percentage range.

The divestments of the rehabilitation business and the operations in Austria lead to non-cash special items of around €0.6 billion.

Due to the exit from the project business, a high triple- digit-million euro amount of special items are expected, which are spread over the next few years and mostly cash- effective.

As of Q2 2024, Vamed will no longer be a reporting segment of Fresenius. In addition to reducing complexity, this step is expected to improve the Group's profitability by more than 50 basis points. It will also reduce net debt and increase the Group's return on invested capital (ROIC). Last but not least, the transparency and quality of earnings will be significantly enhanced.

After exiting from Vamed, Fresenius will consist of the two Operating Companies Fresenius Kabi and Fresenius Helios (each with 100% ownership share) and the Investment Company Fresenius Medical Care (32% ownership share).

DECONSOLIDATION OF FRESENIUS

MEDICAL CARE

With the deconsolidation of the Fresenius Medical Care business segment through a change of the legal form of Fresenius Medical Care AG & Co. KGaA into a stock corporation (''Aktiengesellschaft''), we reached a milestone in the implementation of our #FutureFresenius strategy in the 2023 fiscal year. The resulting significant reduction in the complexity of the corporate structure creates the

conditions for greater flexibility and more efficient, faster decision-making.

Since the entry of Fresenius Medical Care's change of legal form in the commercial register on November 30, 2023, the investment in Fresenius Medical Care is accounted for using the equity method in accordance with IAS 28.

STRUCTURAL PRODUCTIVITY

Structural productivity improvements are expected to offset macro headwinds and to create financial flexibility for future growth investments in the coming years.

The groupwide cost savings program progressed and is fully on track. Under the program, Fresenius realized ~€25 million incremental structural cost savings at EBIT level in Q1 / 24. In the same period, one-time costs of ~€15 million incurred to achieve these savings.

Fresenius expects to achieve annual sustainable cost savings of ~€400 million at EBIT level by 2025. So far, Fresenius reached ~€305 million of cumulative structural cost savings. To reach this target, one-time costs between ~€80 and €100 million are anticipated between 2024 and 2025. These costs will continue to be classified as special items in line with previous practice.

For 2024, total cost savings of ~€330 to €350 million are expected. This corresponds to incremental cost savings of ~€50 to €70 million in 2024 compared to 2023.

The programs continue to target all business segments and the Corporate Center. Key elements include measures to optimize sales and administrative costs, fostering digitalization as well as improve procurement processes.

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SUSTAINABILITY PROGRAM

For Fresenius, sustainability is an integral part of its business model. The company is working to establish global sustainability standards and continuously improve its own sustainability performance. To this end, Fresenius continued to drive forward its ESG (Environment, Social, Govern- ance) initiatives. Fresenius has set a climate target for the Group complementing its existing sustainability targets and programs. The company aims to be climate-neutral by 2040 and to reduce 50% of absolute Scope 1 and Scope 2 emissions by 2030 compared to 2020 levels. Fresenius will continuously assess Scope 3 emission impacts for inclusion in our targets.

Further information on our sustainability organization and measures can be found in the Non-financial Group Report starting on page 107 of the Annual Report 2023.

Fresenius | Quarterly Financial Report | 1st Quarter 2024

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Fresenius | Quarterly Financial Report | 1st Quarter 2024

HEALTHCARE INDUSTRY

The healthcare sector is one of the world's largest industries and we are convinced that it shows excellent growth opportunities.

The main growth factors are:

rising medical needs deriving from aging populations,
the growing number of chronically ill and multimorbid patients,
stronger demand for innovative products and thera- pies,
advances in medical technology,
the growing health consciousness, which increases the demand for healthcare services and facilities, and
the increasing demand for digital health services for patients.

In the emerging countries, additional drivers are:

expanding availability and correspondingly greater demand for basic healthcare, and
increasing national incomes and hence higher spend- ing on healthcare.

Healthcare structures are being reviewed and cost-cutting potential identified in order to contain the steadily rising healthcare expenditures. However, such measures cannot compensate for the cost pressure. Market-based elements are increasingly being introduced into the healthcare system to create incentives for cost- and quality-conscious behavior. Overall treatment costs will be reduced through improved quality standards.

In addition, ever-greater importance is being placed on disease prevention and innovative reimbursement models linked to treatment quality standards.

In addition, increasing digitization in healthcare can contribute to improved cost efficiency and patient care.

The industry-specific framework for the operating business of the Fresenius Group remained essentially unchanged in the reporting period.

EXTERNAL FACTORS

In the period under review, the overall challenging macroeconomic environment continued to be characterized by geopolitical tensions, elevated cost levels due to inflation as well as persistently high interest rates.

Despite the challenging market environment, the structural growth drivers in the non-cyclical healthcare markets are in place.

The legal framework for the operating business of the Fresenius Group remained essentially unchanged in the period under review.

Details of the fluctuating exchange rates can be found in the statement of comprehensive income on page 31. The extraordinarily high inflation in Argentina and the associated devaluation of the Argentinian peso had a negative impact on the consolidated income statement.

In the period under review, the Fresenius Group was involved in various legal disputes resulting from business op- erations. Although it is not possible to predict the outcome of these disputes, none is expected to have a significant adverse impact on the assets and liabilities, financial position, and results of operations of the Group.

We carefully monitor and evaluate country-specific, po- litical, legal, and financial conditions regarding their impact on our business activities. This also applies to the potential impact of inflation and currency risks.

RESULTS OF OPERATIONS, FINANCIAL

POSITION, ASSETS AND LIABILITIES

REVENUE

Group revenue increased by 4% (6% in constant currency) to €5,704 million (Q1/2023: €5,546 million). Organic growth was 6%1 driven by an ongoing strong performance of our Operating Companies. Acquisitions / divestitures contributed net 0% to growth. In total, currency translation had a negative effect of -2% on revenue growth. The Operating Companies increased revenue by 5 % (7% in constant cur- rency).

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