Fresenius : Quarterly Financial Report Q3 2023 (IFRS)

QUARTERLY FINANCIAL REPORT

Q3 | 2023

At a Glance

Shareholder Information

Interim Group Management Report

Financial Statements

Financial Calendar/Contact

Table of contents

TABLE OF CONTENTS

		24	Business segments
3	Fresenius Group figures at a glance		24	Fresenius Kabi	35	Consolidated financial statements
			26	Fresenius Helios	35	Consolidated statement of income
			28	Fresenius Vamed	36	Consolidated statement of comprehensive income
4	Shareholder information	30	Employees	37	Consolidated statement of financial position
		30	Changes to the Management Board	38	Consolidated statement of cash flows
		30	Research and development	40	Consolidated statement of changes in equity
5	Interim Group Management Report	30	Rating	42	Consolidated segment reporting first nine months of 2023
5	Strategy and goals	31	Oppotunities and risk report	43	Consolidated segment reporting third quarter of 2023
11	Healthcare industry	32	Outlook 2023
12	Results of operations, financial position, assets and liabilities
	12 New presentation financial information				44	Notes

1. Revenue

1. Earnings

15 Reconciliation

67 Financial Calendar

1. Reconciliation tables

1. Investments
2. Cash flow
3. Asset and liability structure

Fresenius Quarterly Financial Report 1st -- 3rd Quarter and 3rd Quarter 2023

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At a Glance

Shareholder Information

Interim Group Management Report

Financial Statements

Financial Calendar/Contact

FRESENIUS GROUP FIGURES AT A GLANCE

Fresenius is a global healthcare group. We offer system-critical products and services for leading therapies for care of critically and chronically ill patients.

The Fresenius Group comprises the Operating Companies Fresenius Kabi and Fresenius Helios and the Investment Companies Fresenius Medical Care (in accordance with IFRS 5)

and Fresenius Vamed.

REVENUE AND EARNINGS

								Growth						Growth
€ in millions						in constant						in constant
Q3 / 2023			Growth		currency	Q1-3 / 2023			Growth		currency
Revenue		5,518			2%		6%		16,621			5%		7%
EBIT1		519			8%		10%		1,628			0%		0%
EBIT margin1		9.4%							9.8%
Net income1,2			344	-7%	-5%		1,108	-14%	-13%

Table of contents

BALANCE SHEET

€ in millions

Total assets3

Equity4

Equity ratio4

Net debt / EBITDA1,5

Sep. 30, 2023

75,328

30,282

40.2%

4.03

Dec. 31, 2022

Change

76,400 -1%

32,218 -6%

42.2%

3.80

st -- 3rd Quarter and 3rd 2023

PROFITABILITY

Cash Conversion Rate (CCR); LTM

Return on equity after tax (ROE)1,2,6

Return on operating assets (ROOA)1,6

Return on invested capital (ROIC)1,6

Q1-3 / 2023	Q1-3 / 2022
0.9	0.7
7.8%	8.5%
5.6%	6.1%
5.0%	5.6%

Quarterly Financial Report 1

• Before special items

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

• Including Operations to be deconsolidated (Fresenius Medical Care in accordance with IFRS 5)
  4 Including noncontrolling interests
  5 At LTM average exchange rates for both net debt and EBITDA; pro forma acquisitions / divestitures; including lease liabilities, before special items, including FMC dividend
  6 2022: annual return FY / 22

Fresenius

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At a Glance

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SHAREHOLDER INFORMATION

The short-term economic outlook has deteriorated over the course of the third quarter of 2023 partly due to tighter financing conditions. Hopes for an easing of inflation and a more stable economic situation remain in the medium term. Overall, the DAX gained 9% in the first nine months, while the Fresenius share closed at €29.46, an increase of 12%.

RELATIVE SHARE PRICE PERFORMANCE VS. DAX

31.12.2022 = 100%

120

115

110

105

100

95

90

85

80
31.12.2022	31.01.2023	28.02.2023	31.03.2023	30.04.2023	31.05.2023	30.06.2023	31.07.2023	31.08.2023	30.09.2023
			Fresenius share		DAX

DEVELOPMENT IN THE THIRD QUARTER 2023

For the euro zone, the ECB Council raised the key interest rate again by 0.25% to 4.5% in mid-September 2023. The central bank's current forecasts for real GDP have been revised downwards by 0.2% for the current reporting year and by 0.5% for 2024 compared to the June 2023 forecasts. The decline is mainly due to tighter financing conditions, poorer short-term growth prospects and a stronger exchange rate in the euro zone.

In its latest forecast, the Federal Reserve expects the US economy to grow by 1.0% in 2023. The key interest rate range of 5.25 to 5.5% was confirmed in mid-September 2023. This is a pause in the interest rate hikes that have been in place since March 2022 in order to combat rising inflation.

-- 3rd Quarter and 3rd Quarter

KEY DATA OF THE FRESENIUS SHARE

Number of shares (Sep. 30 / Dec. 31)

Stock exchange quotation1 in €

High

Low

Period-end quotation closing price in €

• Trading volume (number of shares per trading day) Market capitalization2 in million € (Sep. 30 / 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

Q1-3 / 2023

563,237,277

31.11

23.46

29.46

1,257,237

16,593

2022Growth

563,237,2770%

37.88-18%

20.0417%

26.2512%

1,590,013-21%

14,78512%

In this economic environment, the DAX increased by 9% to 15,387 points in Q1-3 2023. The Fresenius share recorded an increase of 12% in the same period and closed at €29.46 on 30 September 2023.

Fresenius Quarterly Financial Report 1st

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At a Glance

Shareholder Information

Interim Group Management Report

Financial Statements

Financial Calendar/Contact

Table of contents

INTERIM GROUP MANAGEMENT REPORT

#FutureFresenius continues to provide positive momentum: Fresenius delivers strong third quarter performance and improves operating earnings outlook

• Application of IFRS 5: Fresenius Group financials for the first time presented excluding Fresenius Medical Care
• Excellent Group revenue growth of 6% in constant currency to €5.5 billion driven by Operating Companies and Fresenius Vamed
• Group EBIT increased 10% in constant currency reflecting strong performance of Operating Companies; Fresenius Vamed with operational improvement
• Fresenius Kabi with strong organic revenue growth of 7% at top-end of structural growth band; EBIT margin remains within structural band at 14.3%
• Fresenius Helios with strong organic revenue growth of 5% at top-end of structural growth band despite usual summer effect in Spain
• Fresenius Vamed's transformation progressing
• Deconsolidation of Fresenius Medical Care effective by December 2023
• Divestments advancing: exit of hospital operations in Peru
• FY / 23 structural productivity savings target of ~€200 million excluding Fresenius Medical Care already achieved in first nine months
• Group revenue outlook confirmed, Group EBIT outlook improved

1st -- 3rd Quarter and 3rd Quarter 2023

STRATEGY AND GOALS

AT THE HEART OF HEALTHCARE

Demographic change is posing fundamental challenges to societies worldwide. Not only are people living longer, but the pace of population aging is also increasing signifi- cantly. As a result, the social and healthcare systems of many countries are coming under increasing pressure. As the average age of the population increases, so does the

number of critically and chronically ill patients.1 A longer life, however, also offers opportunities for individuals and societies. The extent to which these opportunities can be leveraged depends heavily on one factor: health.

At Fresenius, we are at the heart of healthcare. At the core of everything we do is our purpose: Advancing Patient Care. In line with this purpose, 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 medical paradigm shifts in the healthcare environment with regards to biologic products and therapies, technological change and new forms of data generation, processing and usage. We aim 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

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WHO 2021: ''Ageing and health''

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create value for our stakeholders and enable us to continue investing in better medicine.

To improve our management effectiveness and enable a targeted approach to capital allocation, we are differentiating between our operating companies, Fresenius Kabi and Fresenius Helios (each with 100% ownership share) and our strategic capital investments Fresenius Medical Care (32% ownership share) and Fresenius Vamed (77% ownership share).

Fresenius will deconsolidate the business segment Fresenius Medical through a change of legal form of Fresenius Medical Care AG & Co. KGaA into a stock corporation (Aktiengesellschaft). Further information is provided within the section ''Deconsolidation of Fresenius Medical Care''. Additional information on Vamed is provided with the section ''Transformation of Fresenius Vamed''.

Fresenius runs operating companies and strategic capital investments in key healthcare areas indispensable for critically and chronically ill patients. We continuously develop our business areas and strive to assume leading positions in system-critical healthcare markets and segments. We orient our portfolio towards healthy, profitable growth, a strong focus on margins and capital returns, and the highest ambitions for operational excellence and competi- tiveness.

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. At the same time, we care for our environment by protecting nature and using its resources carefully.

Fresenius Kabi's corporate philosophy ''caring for life'' expresses the company's commitment 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 Medical Care ensures patient health and product safety by providing a safe environment in its clinics. Fresenius Medical Care considers the quality and safety of its products and services to be the foundation of its success.

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

Fresenius will continue building on its strength in tech- nology, its competence and quality in patient care, and its 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.

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.

To tackle the upcoming challenges, attracting new employees is key for the growth of our company. Not only do we try to attract new talent, but also do everything we can to retain and develop our employees over the long term. We offer a variety of flexible working-time models and incentive programs to ensure that our long-term needs for highly qualified employees are met. Furthermore, we offer our employees opportunities to develop their careers in an international and dynamic environment.

EXECUTING SEGMENT STRATEGIES

The Fresenius Group offers a broad spectrum of system critical products and services for the health and quality of life of our patients. Our business segments hold leading positions in key areas of healthcare, and all of them are continuing to execute their respective strategic priorities to sustain leadership and contribute significantly to the benefit of healthcare systems. At the level of Fresenius Group, we manage the strategic direction of the Group, and orient our portfolio towards value-maximizing business areas and maximum patient impact.

With its Vision 2026, Fresenius Kabi has developed a strategic plan to transform the company for the next decade and to better capture new growth opportunities.

Fresenius Kabi will continue to focus on high-quality products for critically and chronically ill patients.

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As part of this clear strategy, Fresenius Kabi has defined three growth vectors in addition to strengthening resilience in the volume-driven business with IV drugs (''3+1'' strategy). The growth vectors are:

• the broadening of our biopharmaceutical offering,
• further rollout of clinical nutrition,
• expansion in the MedTech area.

Fresenius Kabi's growth strategy was presented transparently at a Capital Market Day in May 2023.

With the acquisition of a majority stake in mAbxience, we form a fully integrated, vertical biopharma business that holds a strong portfolio and pipeline, provides extensive and cost-efficient manufacturing, and is building a targeted commercial footprint in Fresenius Kabi's and mAbxience's target regions.

Our newly bundled MedTech business has been further strengthened by the acquisition of Ivenix. With the award- winning Ivenix infusion system, we are entering the infusion therapy market in the United States. The design of the Ivenix infusion system is easier to use than conventional systems and increases the safety of infusions. The pump also works seamlessly with other systems.

Through successful organic launches, we have become the leading IV lipid nutrition supplier in North America, further strengthening our global nutrition business in addition to its strong base in Europe, Latin America, and Asia- Pacific.

In parallel, Fresenius Kabi has continued to build resilience in its volume-driven IV business, and is extending the portfolio with continued launches in all regions.

Fresenius Helios wants to further strengthen its position as the leading private healthcare provider in Europe.

Helios Germany will continue to focus its offerings on cross-sector healthcare, further specialize hospitals, and coordinate their respective medical service portfolios within regional structures. In regional competence centers, we are already pooling expertise in various specialist areas in order to achieve the best treatment results for our patients. We will continue to drive this clustering forward in the future in order to further enhance medical quality. We intend to exploit the growth potential in the outpatient sector by linking our medical care centers (MVZs) even more closely with hospitals. In addition, we will seize the newly created regulatory opportunity of daytime inpatient treatment as a further form of care. We also aim to increase the efficiency of our energy consumption in the interests of sustainability and climate protection. The goal is to reduce energy consumption by about 20% across all hospitals in 2023 compared to 2021.

In Spain, we expect demand for hospital and other healthcare services to continue to rise. We want to continue to exploit this potential by building new clinics and expanding existing hospital sites. We aim to integrate our diverse range of inpatient and outpatient services even better and further expand them across the entire network of sites. We consistently focus on the strategic factors of medical excel- lence, innovation, and service quality in order to attract pa- tients. Our focus here is on optimal treatment quality as well as patient satisfaction.

In addition, we expect growth opportunities from consolidations in the fragmented private hospital market.

As a hospital operator, we aim to make even greater use of the potential offered by digitalization to further improve patient care and our service. In the future, our range of services will be supplemented even more by digital and telemedical offerings. Digital patient records and telemedi- cine will provide new communication channels outside the hospital, as well as faster transmission and interpretation of health data.

We also intend to grow our field of reproductive medicine and to specifically expand and extend the global network of reproductive clinics.

Fresenius Medical Care launched its FME25 program in 2021 and started to significantly streamline its business model in 2022, creating two global segments -- Care Delivery and Care Enablement, which were introduced on Janu- ary 1, 2023. Fresenius Medical Care is thus aligning its operating model with the relevant value drivers of the future.

Fresenius Vamed has realized projects in the area of integrated healthcare services to support healthcare systems more efficiently. In addition, state-of-the-art standards such as the use of building information modeling (BIM) in the construction of healthcare facilities, new concepts for operational management through the use of innovative technologies, and digitalization measures were implemented to improve medical care and reduce the workload of medical staff.

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#FUTUREFRESENIUS

In Q4 / 22, we launched #FutureFresenius and embarked on a transformative journey to prepare Fresenius for the coming decades.

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. With the closure of the ''Reset'' phase, we are now in the ''Revi- talize'' phase, gearing up for continuous portfolio optimization and the pursuit of growth verticals.

PORTFOLIO FOCUS

We have executed a comprehensive diagnosis of our Group portfolio at sub-segment level, in order to highlight growth opportunities aligned with market trends, further refine our management approach for each business we operate, and identify areas to strengthen our portfolio focus.

Going forward, we want to increasingly orient our portfolio along 3 platforms: (Bio)Pharma -- including clinical nutrition -, MedTech and Care Provision. With these plat- forms, we cater to major trends in healthcare and become a more therapy-focused company. 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.

As part of the focusing of its portfolio, Fresenius has sold its 70 percent stake in IDCQ CRP, an associated company of the Clínica Ricardo Palma hospital in Lima, Peru. The acquirers are companies belonging to the Verme family, which already have a stake in the hospital, as well as other local investors.

The exit from the Peruvian hospital market is a further step towards strengthening #FutureFresenius and is in line with the company's announcement at the beginning of the year to divest certain businesses. Subject to antitrust review, Fresenius expects the transaction to close in the first quarter of 2024.

To improve our management effectiveness and enable a targeted approach to capital allocation, we are differentiating between our operating companies, Fresenius Kabi and Fresenius Helios (each with 100% ownership share) and our investment companies Fresenius Medical Care (32% ownership share) and Fresenius Vamed (77% ownership share), since the beginning of this year. We will prioritize growth investments for the health-care products and services of tomorrow in our operating companies Fresenius Kabi and Fresenius Helios. 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. Within the Fresenius Group, we will provide

effective support and governance services to the benefit of our segments and the overall capital efficiency of the Group.

DECONSOLIDATION OF

FRESENIUS MEDICAL CARE

Fresenius intends to deconsolidate the business segment Fresenius Medical through a change of legal form of Fresenius Medical Care AG & Co. KGaA into a stock corporation (Aktiengesellschaft). At the Extraordinary General Meeting (EGM) on July 14, 2023, more than 99% of Fresenius Medical Care's shareholders voted in favor for the conversion of Fresenius Medical Care from the legal form of a partnership limited by shares (Kommanditgesellschaft auf Aktien, KGaA) into a German stock corporation (Ak- tiengesellschaft, AG). In its constituting meeting following the EGM, the new Supervisory Board elected Fresenius Group CEO Michael Sen as its Chair, as well as Fresenius Group CFO Sara Hennicken as its Deputy Chair. This is a testament to Fresenius' close relationship with Fresenius Medical Care and its continued commitment to the Com- pany. The simplified structure will lead, among others, to a more efficient and faster decision-making as it allows for a clearer focus on the interests of the Fresenius Medical Care group and frees up management resources. Fresenius Medical Care will also have greater flexibility concerning its financial strategy.

The deconsolidation process of Fresenius Medical Care is on track. The competent Higher Regional Court in Bam- berg has fully approved the application for release that Fresenius Medical Care had filed with regard to the legal actions brought against the change of the legal form into a stock corporation. Accordingly, the change of the legal form can be registered with the commercial register.

Fresenius expects the deconsolidation to become effective by December 2023. From then on, Fresenius Medical Care AG & Co. KGaA will operate as Fresenius Medical Care AG.

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As a result of the approval of the change of legal form by the Extraordinary General Meeting on July 14, 2023, Fresenius Medical Care is for the first time in Q3 / 23 presented as a single item in the financial statements of the Fresenius Group. Fresenius Medical Care is now classified in accordance with IFRS 5 as "Operations to be deconsoli- dated'' and presented in a single line item in Fresenius's balance sheet, the P & L and the cash flow statement.

IFRS 5 requires the valuation of Fresenius Medical Care at Fair Value. As of September 30, 2023, the market capitalization of about €12 billion was below the consolidated shareholders' equity of Fresenius Medical Care of about €14 billion. This results in a valuation effect of €2 billion, of which ~€0.6 billion are attributable to the shareholders of Fresenius SE & Co. KGaA. This effect is reported as a special item without any cash impact.

STRUCTURAL PRODUCTIVITY

While fundamentally healthy and geared toward long-term growth, our market environment is also characterized by strong current macro headwinds that challenge our operations and increase our cost base. With that in mind, we have reinvigorated our focus on structural productivity and are running corresponding programs in all our business segments and at the corporate center.

The target for cost savings is to save around €1 billion annually (including Fresenius Medical Care ) in structural costs at EBIT level from 2025 (of which around €350 million excluding Fresenius Medical Care).

To achieve the targeted cost savings, one-time costs of around €700 million to €750 million are expected at EBIT level including Fresenius Medical Care (of which around 1/3 excluding Fresenius Medical Care), of which around 2/3 are expected to occur in 2023.

In order to reach this goal, Fresenius is running targeted programs across all business segments and the Corporate Center with the oversight and steering of the Group. Key elements include measures to optimize the network, sales and administrative costs, procurement, as well as divesting from non-core assets.

The groupwide cost savings program progresses significantly ahead of plan. Under the program, Fresenius realized ~€200 million of structural cost savings at EBIT level (excluding Fresenius Medical Care) in Q1-3 / 23. With that, all savings originally expected for 2023 are already realized. In the same period, one-time costs of around €90 million (excluding Fresenius Medical Care) incurred to achieve these savings. This is well below what the Company initially accounted for and testament that our one-time costs are tightly managed.

On Group level including Fresenius Medical Care, the savings in Q1-3 / 23 amount to ~€430 million. In the same period, one-time costs of ~€190 million incurred to achieve these savings.

Fresenius Digital Technology entered a strategic partnership with Capgemini, a global leader in the IT sector, to streamline its IT services. As of October, Capgemini has taken over operational delivery of standard IT services, while Fresenius Digital Technology focuses on its core compen- tences as business partner for all Fresenius segments.

The partnership will lead to new and optimized products, improved customer satisfaction and increased value crea- tion, and optimized IT operations. In addition, new business models can be developed and strengthened while taking advantage of cost savings and a global support model.

TRANSFORMATION FRESENIUS VAMED

With the presentation of the business figures for the first quarter of 2023, Fresenius has announced that it will subject the business model, governance and all processes of Fresenius Vamed to a comprehensive analysis. At the same time, a comprehensive and far-reaching restructuring program has been initiated with the clear goal to increase the company's profitability. Also, a comprehensive reassessment of the company organization was initiated which led to the reorganization of the VAMED management already at the end of June. The new Fresenius Management Board member Dr. Michael Moser will be responsible for Fresenius Vamed. The control function of the VAMED Supervisory Board was strengthened through new appointments and the establishment of an Audit Committee consisting of Sara Hennicken as Chair and Dr. Michael Moser as Deputy Chair, among others.

The restructuring program aims to adjust Fresenius Vamed's project business, especially in Germany. Moreover, the withdrawal of non-core service businesses in main markets outside Europe is intended. This includes the redimen- sioning of activities, and associated with this, achieving a significantly lower risk profile.

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In the future, Fresenius Vamed will focus on attractive businesses comprising:

• Health Facility Operations (HFO) centered on inpatient and outpatient rehabilitation and nursing
• High-EndServices (HES) for hospitals focused on the management of medical equipment, hospital operating technology and sterile supplies
• Health Tech Engineers (HTE) covering the project business for the healthcare sector

In Q3 / 23, further progress in the transformation of Fresenius Vamed was achieved. With a positive EBIT of €10 million in Q3 / 23 (Q2 / 23: -€20 million), Fresenius Vamed is ahead of its originally expected target for Q3 / 23. The encouraging development was especially driven by the High-End Services (HES) and Health Facility Operations (HFO) businesses. For Q4 / 23, a further solid development is expected.

In Q3 / 23, negative special items mainly related to closing down activities, asset re-evaluations and restructuring costs resulted in write-downs and provisions of €109 mil- lion. The negative special items were predominantly booked as non-cash items. In Q1-3 / 23, negative special items of €441 million were incurred.

By 2025, Fresenius Vamed is expected to reach the structural EBIT margin band of 4% to 6% set out in the #FutureFresenius Financial Framework.

SHARPENING OF FOCUS: EXIT FROM HOSPITAL MARKET IN PERU

Fresenius sells its 70 percent stake in IDCQ CRP, a co-holding entity of the hospital Clínica Ricardo Palma in Lima, Peru. The stake is acquired by entities of the Verme family which already hold a stake in the hospital, together with other local investors. This exit from the hospital market in Peru is a further step to strengthening #FutureFresenius and is in line with the company's intention to divest certain assets announced earlier this year. Subject to antitrust re- view, the all-cash transaction is expected to close in the first quarter of 2024.

CHANGE MOMENTUM

At Fresenius, our collective actions have always been driven by our enormous passion and strongest possible commitment to patients. On our pathway to #FutureFresenius, we want to nurture this passion, and combine it with a strong appetite for change, preparing us for the dynamic shifts in the healthcare industry for the best of our patients. As part of #FutureFresenius, we aim to embrace new ways of working and establish a culture of excellence, where we measure ourselves against the best and maintain trusting dialog that welcomes diverse perspectives. Throughout our company, we engage in such trusting dialog with our employees, stake- holders, and external partners, and our global top leaders are agreed about the need for change. We aim to continuously pick up the pace of change and improvement and use this momentum to create #FutureFresenius.

SUSTAINABILITY PROGRAM

For Fresenius, sustainability is a crucial and integral part of the corporate strategy. 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, Governance) 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.

The Annual General Meeting in 2023 approved the Compensation System 2023+, which provides for a new plan for long-term variable compensation that takes even greater account of promoting the long-term and sustainable development of the company. In addition, the aspect of sustainability has been anchored even more strongly in the long- term variable compensation: A significant reduction in CO2 emissions is to be set as ESG target for the 2023 tranche, in line with our aforementioned Group target.

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