• Financial management policies and goals
• Financing
• Effect of off-balance-sheet financing instruments on our financial position and assets and liabilities
• Liquidity analysis
• Dividend
• Cash flow analysis
• Investments and acquisitions

Financial management policies and goals

The financing strategy of the Fresenius Group has the following main objectives:

• Ensure financial flexibility
• Optimize the weighted-average cost of capital

Ensuring financial flexibility is key to the financing strategy of the Fresenius Group. This is achieved through a broad spectrum of financing instruments, taking market capacity, investor diversification, utilization flexibility, credit covenants, and the current maturity profile into consideration. The Group’s maturity profile is characterized by a broad spread of maturities with a large proportion of mid- to long-term financing. When selecting the financing instruments, we also take into account the currency in which our earnings and cash flows are generated, and match them with appropriate debt structures in the respective currencies. The Group’s main financing instruments are illustrated in the chart below.

Sufficient financial cushion is assured for the Fresenius Group by syndicated and bilateral credit lines that are only partially drawn. In addition, Fresenius SE & Co. KGaA has a commercial paper program. The Fresenius Medical Care receivable securitization program offers additional financing options.

Another main objective of Fresenius Group’s financing strategy is to optimize the weighted-average cost of capital by employing a balanced mix of equity and debt. Predictable and sustainable cash flows are generated due to the Company’s diversification within the health care sector and the strong market positions of the business segments in global, growing, and non-cyclical markets. These allow for a reasonable proportion of debt, i. e., the use of a comprehensive mix of financial instruments. To ensure long-term growth, a capital increase may also be considered in exceptional cases, for example to finance a major acquisition.

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. The Fresenius Kabi, Fresenius Helios, and Fresenius Vamed business segments are financed primarily through Fresenius SE & Co. KGaA in order to avoid any structural subordination.