For a year, Fresenius CEO Stephan Sturm thought about the structure of the group. At the balance sheet press conference a year ago, he said that all areas would be examined. The fact that the structure is constantly being questioned is a completely normal process, Sturm said at the general meeting in May. There are no taboos. On Tuesday, in the balance sheet press conference, which was again virtual, Sturm announced the result of all considerations. He likes the structure with the four areas Fresenius Medical Care (FMC), Vamed, Helios and Kabi. This has proved its worth, especially in difficult times. The group suffered again from the pandemic in the 2021 financial year, but “delivered a decent result under the given circumstances,” explained Sturm.
In 2021, currency-adjusted sales increased by five percent to EUR 37.5 billion, and net income adjusted for special items by five percent to EUR 1.9 billion. According to the proposal to the general meeting, the dividend should increase by four cents to 92 cents per share. For the first time, however, shareholders have the choice of having the money paid out in cash or in shares.
Sturm emphasizes the synergies of the existing group structure, for example in financing. The lenders “appreciate them very much”. Some investors don’t like them. Sturm knows why: The group is valued significantly lower on the stock exchange than the sum of the individual parts. It wouldn’t be the first time that a corporation has been broken up, there are many examples. The US group Johnson & Johnson, for example, is planning to split up into two listed companies, and the Japanese group Toshiba also wants to split up. Sturm sees no arguments for this at Fresenius: “We are not a conglomerate”. Fresenius is active in the healthcare market. Is he planning to fillet the group? Sturm asks the question and immediately answers: “Certainly not.” What he then explains is not a contradiction for him.
Fresenius CEO Stephan Sturm at the balance sheet press conference on Tuesday – again only virtually.
(Photo: Sepp Spiegl/SZ Photo)
The group wants to grow, needs money and has to open up new sources of capital. The company can handle small to medium-sized takeovers itself, according to Sturm. Fresenius cannot afford larger takeovers and larger investments, for example in digitization, from on-board resources, and he does not want to increase debt significantly any further. An increase in equity at the holding level of the group is not an option, says Sturm with a view to the share price, and then explains several options in detail. To give a guarantee for all four areas “that would not be serious,” says Sturm.
Sturm does not rule out a divestment of the stake in Fresenius Medical Care. FMC serves people with kidney disease. Fresenius holds 32 percent of the group listed in the Dax. If there is a “really attractive offer,” Sturm says it’s his duty to check it out. Fresenius wants to remain the sole owner of the daughter Kabi. Among other things, it manufactures biosimilars, infusions and tube feedings. In the case of Helios and Vamed, Sturm can imagine contributions in kind or cash, the entry of investors and, as he explains, an IPO as an exit option for potential investors “in the future”. Helios operates clinics, medical care centers and medical practices. Vamed plans and builds hospitals and operates care and rehabilitation facilities. Fresenius wants to keep a minority stake in Vamed, and according to Sturm, almost a quarter already belongs to the state of Austria and an investor. Fresenius wants to retain a majority in the Helios clinic group.
As Sturm sounds, there really is hardly any taboo.