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Financing

Fresenius meets its financing needs through a combination of operating cash flows generated in the business segments and short-, mid-, and long-term debt. In addition to bank loans, important financing instruments include the issuance of Senior Notes, Euro Notes, a commercial paper program, and a receivable securitization program.

In 2013, the Group’s financing activities mainly involved the refinancing of existing and maturing financing instruments and the long-term financing for acquisitions (mainly the acquisition of hospitals and outpatient facilities from Rhön- Klinikum AG) and general corporate purposes. In addition, financing measures were implemented that had previously been initiated in order to reduce future interest expense and to further improve the Company’s maturity profile.

  • In January 2013, Fresenius Finance B.V. placed Senior Notes in the amount of €500 million with a 2.875% coupon. The Senior Notes were issued at par and mature in 2020. Net proceeds were used to refinance the Senior Notes which were due in January 2013.
  • In February 2013, Fresenius exercised the call option for its 5.5% Senior Notes due in 2016. The principal amount of €650 million was redeemed in full. Initially, the redemption was financed by utilizing existing credit lines. From the end of June 2013, drawings under the syndicated credit agreement (“2013 Senior Credit Agreement”) arranged in December 2012 were utilized.
  • In February 2013, Fresenius SE & Co. KGaA issued a total of €125 million in Euro Notes. The proceeds were used for general corporate purposes.
  • The disbursement of the 2013 Senior Credit Agreement was made in June 2013. At this time, it had a total volume of €2.25 billion. It comprised of revolving facilities of US$ 300 million and €600 million, as well as loans of US$ 1.0 billion and €650 million. These tranches mature in 2018. Proceeds from the credit facilities were used to refinance the Company’s syndicated credit facilities, which otherwise would have matured in September 2013 and September 2014, and for general corporate purposes.
  • In August 2013, the 2013 Senior Credit Agreement was extended by a US$ 500 million term loan tranche maturing in 2019. The proceeds from this additional tranche were used to refinance short-term debt.
  • In October 2013, Fresenius SE & Co. KGaA entered into a Bridge Financing Facility in the amount of €1.8 billion with a term of one year. Of this amount, €1.5 billion were used for advance payments in the amount of €2.18 billion under a fiduciary arrangement for the acquisition of hospitals and outpatient facilities of Rhön-Klinikum AG. The net proceeds of the Senior Notes issued in January and February 2014 were used to largely refinance the drawing under the Bridge Financing Facility. On February 27, 2014, the Bridge Financing Facility was voluntarily cancelled prior to maturity and the remaining amount outstanding was repaid.
  • In November 2013, the 2013 Senior Credit Agreement was extended to include additional facilities amounting to €1.2 billion. These facilities consist of a revolving credit facility of €300 million and a loan of €600 million – both maturing in 2018 – and a loan of €300 million that matures in 2019. These additional facilities were also used to finance the acquisition of hospitals and outpatient facilities from Rhön-Klinikum AG.

The chart shows the maturity profile of the Fresenius Group.

Fresenius SE & Co. KGaA has a commercial paper program under which up to €500 million in short-term notes can be issued. As of December 31, 2013, the commercial paper program was fully utilized.

FINANCIAL POSITION – FIVE-YEAR OVERVIEW


€ in millions20132012201120102009
Operating cash flow2,3202,4381,6891,9111,553
as % of sales11.412.610.312.011.0
Working capital14,5714,4704,0673,5773,088
as % of sales22.523.224.922.421.8
Investments in property, plant and equipment, net1,047952758733662
Cash flow before acquisitions and dividends1,2731,4869311,178891
as % of sales6.37.75.77.46.3

€ in millions20132012201120102009
Operating cash flow2,3202,4381,6891,9111,553
as % of sales11.412.610.312.011.0
Working capital14,5714,4704,0673,5773,088
as % of sales22.523.224.922.421.8
Investments in property, plant and equipment, net1,047952758733662
Cash flow before acquisitions and dividends1,2731,4869311,178891
as % of sales6.37.75.77.46.3

The Fresenius Group has drawn about €5.9 billion of bilateral and syndicated credit lines. In addition, as of December 31, 2013, the Group had approximately €2.2 billion in unused credit lines available (including committed credit lines of €1.7 billion). These credit facilities are generally used for covering working capital needs and – with the exception of the syndicated credit agreements of Fresenius SE & Co. KGaA and Fresenius Medical Care − are usually unsecured.

As of December 31, 2013, both Fresenius SE & Co. KGaA and Fresenius Medical Care AG & Co. KGaA, including all subsidiaries, complied with the covenants under all the credit agreements.

Detailed information on the Fresenius Group’s financing can be found in the Notes. Further information on financing requirements in 2014 is included in the outlook section.

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