0001104659-14-034842.txt : 20140506 0001104659-14-034842.hdr.sgml : 20140506 20140506060347 ACCESSION NUMBER: 0001104659-14-034842 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140506 FILED AS OF DATE: 20140506 DATE AS OF CHANGE: 20140506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fresenius Medical Care AG & Co. KGaA CENTRAL INDEX KEY: 0001333141 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32749 FILM NUMBER: 14815291 BUSINESS ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 BUSINESS PHONE: 011-49-6172-6090 MAIL ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 6-K 1 a14-11463_16k.htm 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of May 2014

 

FRESENIUS MEDICAL CARE AG & Co. KGaA

(Translation of registrant’s name into English)

 

Else-Kröner Strasse 1

61346 Bad Homburg

Germany

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x

Form 40-F o

 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes  o

No  x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82

 

 

 



 

On May 6, 2014 Fresenius Medical Care AG & Co. KGaA (the “Company”) issued an Investor News announcing its first quarter results for the period ending March 31, 2014. A copy of the Investor News is furnished as Exhibit 99.1.

 

The attached Investor News contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our first quarter 2014 consolidated financial results presented in accordance with Generally Accepted Accounting Principles in the United States, or GAAP, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, and (b) free cash flow. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-GAAP financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures are included in the attached Investor News in a separate statement setting forth the reconciliation and in the Cash Flow Statement.

 

The Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

DATE: May 6, 2014

 

 

 

FRESENIUS MEDICAL CARE AG & Co. KGaA,

 

a partnership limited by shares, represented by:

 

 

 

FRESENIUS MEDICAL CARE MANAGEMENT AG, its

 

General Partner

 

 

 

 

 

By:

/s/ RICE POWELL

 

 

Name:

Rice Powell

 

 

Title:

Chief Executive Officer and

 

 

 

Chairman of the Management Board

 

 

 

of the General Partner

 

 

 

 

 

 

 

By:

/s/ MICHAEL BROSNAN

 

 

Name:

Michael Brosnan

 

 

Title:

Chief Financial Officer and

 

 

 

Member of the Management Board

 

 

 

of the General Partner

 

3


EX-99.1 2 a14-11463_1ex99d1.htm EX-99.1

Exhibit 99.1

 

May 6, 2014

 

INVESTOR

 

NEWS

 

Fresenius Medical Care reports

 

first quarter 2014 results and confirms

 

guidance for full year 2014

 

GRAPHIC

 



 

·                  First quarter performance in line with full year guidance

 

·                  North America influenced by sequestration and rebasing impact

 

·                  International influenced by currency and delayed product sales

 

·                  On track to achieve full year guidance

 

·                  Accelerated medical and quality initiatives

 

First quarter 2014 key figures:

 

Net revenue

 

$

3,564 million

 

+3

%

Operating income (EBIT)

 

$

445 million

 

-10

%

Net income1

 

$

205 million

 

-9

%

Basic earnings per ordinary share

 

$

0.68

 

-7

%

 


1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

 

“We can look back on a first quarter that was in line with our guidance for the full year,” said Rice Powell, chief executive officer of Fresenius Medical Care. “Based on our quarterly results, and on the continuous efforts we are making to increase profitability, we are able to confirm our full-year guidance. Moreover, by capitalizing on market opportunities in our core dialysis business and expanding in business areas like care coordination for dialysis, Fresenius Medical Care is well placed to meet the company’s ambitious long-term targets.”

 

First quarter 2014

 

Revenue

 

Net revenue for the first quarter of 2014 increased by 3% to $3,564 million (+4% at constant currency) compared to the first quarter of 2013. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 4% to $2,782 million (+5% at constant currency) and dialysis product revenue decreased by 1% to $782 million (flat at constant currency) compared to the first quarter of 2013.

 

North America revenue for the first quarter of 2014 increased by 5% to $2,393 million. Organic revenue growth was 4%. Dialysis services revenue grew by 5% to $2,201 million with a same store treatment growth of 3.3%. Dialysis product revenue increased by 5% to $192 million.

 

2



 

International revenue decreased by 1% to $1,161 million (+4% at constant currency). Organic revenue growth was 3%. Dialysis services revenue increased by 1% to $581 million (+8% at constant currency). Dialysis product revenue decreased by 2% to $580 million (-1% at constant currency).

 

Earnings

 

Operating income (EBIT) for the first quarter of 2014 decreased by 10% to $445 million compared to $493 million in the first quarter of 2013. Operating income for North America for the first quarter of 2014 decreased by 8% to $336 million compared to $366 million in the first quarter of 2013. In the International segment, operating income for the first quarter of 2014 decreased by 6% to $180 million compared to $192 million in the first quarter of 2013.

 

Net interest expense for the first quarter of 2014 was $96 million, compared to $104 million in the first quarter of 2013.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2014 was $205 million, a decrease of 9% compared to the corresponding number of $225 million for the first quarter of 2013.

 

Income tax expense was $102 million for the first quarter of 2014 which translates into an effective tax rate of 29.1%. This compares to income tax expense of $129 million and a tax rate of 33.2% for the first quarter of 2013.

 

Basic earnings per ordinary share (EPS) for the first quarter of 2014 was $0.68, a decrease of 7% compared to the corresponding number for the first quarter of 2013. The weighted average number of shares outstanding for the first quarter of 2014 was approximately 301.5 million shares, compared to 306.7 million shares for the first quarter of 2013. The decrease in shares outstanding resulted from last year`s share buy-back program, partially offset by stock option exercises in the past twelve months.

 

3



 

Cash flow

 

In the first quarter of 2014, the company generated $112 million in net cash provided by operating activities, a decrease of 64% compared to the corresponding figure of last year and representing 3% of revenue.

 

A total of $197 million was spent for capital expenditures, net of disposals. Free cash flow was -$85 million compared to $169 million in the first quarter of 2013.

 

A total of $135 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$220 million, compared to $98 million in the first quarter of 2013.

 

Employees

 

As of March 31, 2014, Fresenius Medical Care had 91,542 employees (full-time equivalents) worldwide, compared to 86,855 employees at the end of March 2013. This increase of more than 4,500 employees was attributable to our continued organic growth as well as to acquisitions.

 

Balance sheet structure

 

The company´s total assets were $23,423 million (Dec. 31, 2013: $23,120 million), an increase of 1%. Current assets increased by 3% to $6,497 million (Dec. 31, 2013: $6,287 million). Non-current assets were $16,926 million (Dec. 31, 2013: $16,833 million), an increase of 1%. Total equity increased by 2% to $9,680 million (Dec. 31, 2013: $9,485 million). The equity ratio was 41%, unchanged compared to the ratio at the end of 2013. Total debt was $8,609 million (Dec. 31, 2013: $8,417 million). As of March 31, 2014, the debt/EBITDA ratio was 2.9 (Dec. 31, 2013: 2.8).

 

Please refer to the attachments for a complete overview of the results for the first quarter 2014 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

 

4



 

Changes in management board

 

On March 12, 2014, the company announced the resignations of Prof. Emanuele Gatti, and Dr. Rainer Runte, both effective March 31, 2014, from the general partner’s management board. Dr. Gatti’s position on the management board and duties relating to Europe, Middle East and Africa have been assumed by Mr. Wehner, effective April 1, 2014, while Latin America region management duties have been assumed by Mr. John Anderson who reports directly to CEO Mr. Powell. Until such time as a permanent successor to Dr. Runte is named, Mr. David Kembel, chief compliance officer for Fresenius Medical Care North America, has assumed Dr. Runte’s responsibilities for Global Compliance on an interim basis and CEO Mr. Powell, as the chairman of the management board, has assumed Dr. Runte’s remaining responsibilities, until the search for a General Counsel is complete.

 

Long-term revenue target

 

On April, 4 Fresenius Medical Care announced its long-term financial target for 2020. Based on revenue of $14.6 billion in fiscal year 2013, the company has set its ambitious revenue guidance for 2020 at $28 billion. This represents a cumulative average growth rate of around 10% per annum (CAGR) between 2015 and 2020 and a near doubling of revenue compared to 2013. Over the same period the company expects a high single digit increase in net income and EPS.

 

Fresenius Medical Care’s world-leading position in the dialysis industry has been built on its vision and capabilities in developing innovations that shape the future of treatment for patients. Fresenius Medical Care will continue to develop innovative products focused on quality outcomes for the patient while expanding the company’s dialysis products and services around the world. In addition to strong growth in the underlying business of dialysis products and services, Fresenius Medical Care sees significant potential in a business area it began developing some years ago and now calls Care Coordination. Care Coordination is an extension of the company’s renal care for its patients and currently includes e.g. vascular care, laboratory and pharmacy businesses. By further integrating those services in the U.S. into the existing core business and thereby creating a high-performance renal network including risk based models and by the development of chronic care centers in the International segment, the company expects a significant improvement of patient care outcomes. Fresenius Medical Care plans to build this business segment and expects revenue from Care Coordination to grow from 3% of total revenue in 2013 to about 18% in 2020.

 

5



 

Outlook

 

The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company’s performance over a multi-year period. Potential cost savings before income taxes of up to $60 million generated from this program are not included in the outlook for 2014.

 

For 2014, the company expects to spend around $900 million on capital expenditures and around $400 million on acquisitions. The debt/EBITDA ratio is expected to be equal to or below 3.0 by the end of 2014.

 

Conference call

 

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2014 on Tuesday, May 6, 2014, at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

 

6



 

Fresenius Medical Care is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,263 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 270,570 patients around the globe. Fresenius Medical Care is also the world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

 

For more information about Fresenius Medical Care, visit the company’s website at www.fmc-ag.com.

 

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA’s reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

7



 

Statement of earnings

 

 

 

Three months ended
 March 31

 

in US$ million, except share data, unaudited

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

Dialysis care revenue

 

2,845

 

2,742

 

3.8

%

Less: patient service bad debt provision

 

63

 

64

 

-0.8

%

Net dialysis care revenue

 

2,782

 

2,678

 

3.9

%

Dialysis products revenue

 

782

 

786

 

-0.6

%

Total net revenue

 

3,564

 

3,464

 

2.9

%

 

 

 

 

 

 

 

 

Costs of revenue

 

2,482

 

2,354

 

5.4

%

Gross profit

 

1,082

 

1,110

 

-2.5

%

Selling, general and administrative

 

620

 

593

 

4.7

%

Gain on sale of dialysis clinics

 

(0

)

(1

)

-99.8

%

Research and development

 

30

 

30

 

-1.1

%

Income from equity method investees

 

(13

)

(5

)

160.4

%

Operating income (EBIT)

 

445

 

493

 

-9.8

%

 

 

 

 

 

 

 

 

Interest income

 

(16

)

(11

)

45.6

%

Interest expense

 

112

 

115

 

-2.7

%

Interest expense, net

 

96

 

104

 

-7.6

%

Income before taxes

 

349

 

389

 

-10.4

%

Income tax expense

 

102

 

129

 

-21.5

%

Net income

 

247

 

260

 

-4.9

%

Less: Net income attributable to noncontrolling interests

 

42

 

35

 

21.1

%

Net income attributable to shareholders of FMC AG & Co. KGaA

 

205

 

225

 

-8.9

%

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

445

 

493

 

-9.8

%

Depreciation and amortization

 

167

 

157

 

6.9

%

EBITDA

 

612

 

650

 

-5.8

%

EBITDA margin

 

17.2

%

18.8

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

Ordinary shares

 

301,491,046

 

302,773,218

 

 

 

Preference shares

 

 

3,973,333

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

 

$

0.68

 

$

0.74

 

-7.3

%

Basic earnings per ordinary ADS

 

$

0.34

 

$

0.37

 

-7.3

%

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

Cost of revenue

 

69.6

%

68.0

%

 

 

Gross profit

 

30.4

%

32.0

%

 

 

Operating income (EBIT)

 

12.5

%

14.2

%

 

 

Net income attributable to shareholders of FMC AG & Co. KGaA

 

5.8

%

6.5

%

 

 

 

8



 

Segment and other information

 

 

 

Three months ended
 March 31

 

unaudited

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Revenue in US$ million

 

3,564

 

3,464

 

2.9

%

Operating income (EBIT) in US$ million

 

445

 

493

 

-9.8

%

Operating income margin in %

 

12.5

%

14.2

%

 

 

Days sales outstanding (DSO)

 

74

 

76

 

 

 

Employees (full-time equivalents)

 

91,542

 

86,855

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Revenue in US$ million

 

2,393

 

2,287

 

4.6

%

Operating income (EBIT) in US$ million (1)

 

336

 

366

 

-8.3

%

Operating income margin in % (1)

 

14.0

%

16.0

%

 

 

Revenue per treatment in US$

 

355

 

351

 

1.2

%

Cost per treatment in US$

 

299

 

288

 

3.6

%

Days sales outstanding (DSO)

 

56

 

54

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Revenue per treatment in US$

 

363

 

359

 

1.1

%

Cost per treatment in US$

 

305

 

294

 

3.6

%

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

Revenue in US$ million

 

1,161

 

1,169

 

-0.7

%

Operating income (EBIT) in US$ million (1)

 

180

 

192

 

-5.8

%

Operating income margin in % (1)

 

15.5

%

16.4

%

 

 

Revenue per treatment in US$

 

156

 

163

 

-4.2

%

Growth at constant currency

 

2.7

%

3.0

%

 

 

Days sales outstanding (DSO)

 

107

 

116

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

Revenue in US$ million

 

10

 

8

 

22.1

%

Operating income (EBIT) in US$ million (1)

 

(71

)

(65

)

10.5

%

 


(1) In 2013 certain items, in the net aggregate amount of $5,006, relating to research and development, compensation expense and income from equity method investees have been reclassified between the North America Segment, the International Segment and Corporate to conform to the current year’s presentation.

 

9



 

Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures

 

 

 

Three months ended
 March 31

 

in US$ million, unaudited

 

2014

 

2013

 

Segment information North America (1)

 

 

 

 

 

Net revenue

 

2,393

 

2,287

 

Costs of revenue and research and development

 

1,714

 

1,570

 

Selling, general and administrative

 

354

 

355

 

Income from equity method investees

 

(11

)

(4

)

Costs of revenue and operating expenses

 

2,057

 

1,921

 

Operating income (EBIT)

 

336

 

366

 

Operating income margin

 

14.0

%

16.0

%

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA (2)

 

 

 

 

 

Total EBITDA

 

612

 

650

 

Interest expense, net

 

(96

)

(104

)

Income tax expense

 

(102

)

(129

)

Change in working capital and other non-cash items

 

(302

)

(102

)

Net cash provided by operating activities

 

112

 

315

 

 

 

 

 

 

 

Annualized EBITDA

 

 

 

 

 

Operating income (EBIT)

 

2,208

 

2,209

 

Depreciation and amortization

 

659

 

616

 

Non-cash charges

 

67

 

68

 

Annualized EBITDA

 

2,934

 

2,893

 

 


(1) In 2013 certain items relating to research and development, compensation expense and income from equity method investees have been reclassified between the North America Segment, the International Segment and Corporate to conform to the current year’s presentation.

(2) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.

 

10



 

Balance sheet

 

 

 

March 31

 

December 31

 

in US$ million, except debt/EBITDA ratio

 

2014

 

2013

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

6,497

 

6,287

 

Intangible assets

 

12,380

 

12,416

 

Other non-current assets

 

4,546

 

4,417

 

Total assets

 

23,423

 

23,120

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

3,447

 

3,554

 

Long-term liabilities

 

9,664

 

9,433

 

Noncontrolling interests subject to put provisions

 

632

 

648

 

Total equity

 

9,680

 

9,485

 

Total liabilities and equity

 

23,423

 

23,120

 

 

 

 

 

 

 

Equity/assets ratio

 

41

%

41

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term borrowings

 

157

 

97

 

Short-term borrowings from related parties

 

135

 

62

 

Current portion of long-term debt and capital lease obligations

 

301

 

511

 

Long-term debt and capital lease obligations, less current portion

 

8,016

 

7,747

 

Total debt

 

8,609

 

8,417

 

 

 

 

 

 

 

Debt/EBITDA ratio

 

2.9

 

2.8

 

 

11



 

Cash flow statement

 

 

 

Three months ended
 March 31

 

in US$ million, unaudited

 

2014

 

2013

 

Operating activities

 

 

 

 

 

Net income

 

247

 

260

 

Depreciation / amortization

 

167

 

157

 

Change in working capital and other non-cash items

 

(302

)

(102

)

Net cash provided by operating activities

 

112

 

315

 

In percent of revenue

 

3.2

%

9.1

%

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(200

)

(147

)

Proceeds from sale of property, plant and equipment

 

3

 

1

 

Capital expenditures, net

 

(197

)

(146

)

 

 

 

 

 

 

Free cash flow

 

-85

 

169

 

In percent of revenue

 

-2.4

%

4.9

%

 

 

 

 

 

 

Acquisitions, net of cash acquired, and purchases of intangible assets

 

(137

)

(72

)

Proceeds from divestitures

 

2

 

1

 

Acquisitions, net of divestitures

 

(135

)

(71

)

Free cash flow after investing activities

 

(220

)

98

 

 

12



 

Revenue development

 

in US$ million, unaudited

 

2014

 

2013

 

Change

 

Change
 in cc

 

Organic
growth

 

Same store
growth
(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

3,564

 

3,464

 

2.9

%

4.3

%

3.2

%

 

 

Dialysis products

 

782

 

786

 

-0.6

%

0.3

%

0.2

%

 

 

Net dialysis care

 

2,782

 

2,678

 

3.9

%

5.4

%

4.1

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,393

 

2,287

 

4.6

%

4.6

%

3.5

%

 

 

Dialysis products

 

192

 

183

 

4.7

%

4.7

%

4.8

%

 

 

Net dialysis care

 

2,201

 

2,104

 

4.6

%

4.6

%

3.4

%

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,161

 

1,169

 

-0.7

%

3.5

%

2.5

%

 

 

Dialysis products

 

580

 

595

 

-2.5

%

-1.2

%

-1.5

%

 

 

Net dialysis care

 

581

 

574

 

1.2

%

8.4

%

6.7

%

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional development

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,393

 

2,287

 

4.6

%

4.6

%

3.5

%

 

 

Europe/Middle East/Africa

 

732

 

716

 

2.2

%

1.6

%

0.5

%

 

 

Latin America

 

186

 

202

 

-7.9

%

12.8

%

10.5

%

 

 

Asia-Pacific

 

243

 

251

 

-3.1

%

1.5

%

1.8

%

 

 

Corporate

 

10

 

8

 

22.1

%

18.0

%

 

 

 

 

 


(1) same store growth = organic growth less price effects

 

cc = Constant Currency

 

Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure at Constant Exchange Rates or Constant Currency to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. Once we translate the local currency revenues for the Constant Currency, we then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage at Constant Currency.

 

We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure Constant Currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on a company’s revenue from period to period. However, we also believe that the usefulness of data on Constant Currency period-over-period changes is subject to limitations, particularly if the currency effects that are eliminated constitute a significant element of our revenue and significantly impact our performance. We therefore limit our use of Constant Currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both Constant Currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on Constant Currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

 

13



 

Key figures product business

 

in US$ million, unaudited

 

2014

 

2013

 

Change

 

Change in cc

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

Total product revenue

 

1,091

 

1,079

 

1.0

%

2.4

%

Less internal revenue

 

(309

)

(293

)

5.3

%

8.0

%

Total external revenue

 

782

 

786

 

-0.6

%

0.3

%

 

 

 

 

 

 

 

 

 

 

North America

 

387

 

370

 

4.7

%

4.7

%

Less internal revenue

 

(195

)

(187

)

4.7

%

4.7

%

Total North America external revenue

 

192

 

183

 

4.7

%

4.7

%

 

 

 

 

 

 

 

 

 

 

International

 

694

 

701

 

-1.1

%

1.1

%

Less internal revenue

 

(114

)

(106

)

6.3

%

13.7

%

Total International external revenue

 

580

 

595

 

-2.5

%

-1.2

%

 

cc = Constant Currency

 

Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure at Constant Exchange Rates or Constant Currency to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. Once we translate the local currency revenues for the Constant Currency, we then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage at Constant Currency.

 

We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure Constant Currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on a company’s revenue from period to period. However, we also believe that the usefulness of data on Constant Currency period-over-period changes is subject to limitations, particularly if the currency effects that are eliminated constitute a significant element of our revenue and significantly impact our performance. We therefore limit our use of Constant Currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both Constant Currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on Constant Currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

 

14



 

Key figures service business

 

 

 

Three months ended March 31, 2014

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,263

 

3

%

20

 

270,570

 

3

%

10,105,141

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,142

 

2

%

12

 

171,123

 

2

%

6,375,198

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,121

 

3

%

8

 

99,447

 

5

%

3,729,943

 

6

%

Europe/Middle East/Africa

 

637

 

4

%

5

 

52,264

 

6

%

1,955,502

 

6

%

Latin America

 

231

 

2

%

1

 

29,051

 

6

%

1,110,609

 

7

%

Asia-Pacific

 

253

 

2

%

2

 

18,132

 

3

%

663,832

 

3

%

 

15



 

Quality data

 

 

 

North America

 

Europe/Middle East/
Africa

 

Asia-Pacific

 

in % of patients

 

Q4 2013

 

Q1 2014

 

Q4 2013

 

Q1 2014

 

Q4 2013

 

Q1 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

97

 

97

 

96

 

96

 

97

 

96

 

No catheter (> 90 days)

 

83

 

83

 

83

 

83

 

92

 

92

 

Hemoglobin = 10-12 g/dl

 

73

 

75

 

60

 

60

 

58

 

59

 

Hemoglobin = 10-13 g/dl

 

78

 

81

 

77

 

78

 

66

 

68

 

Albumin > 3.5 g/dl(1)

 

85

 

86

 

89

 

88

 

91

 

91

 

Phosphate < 5.5 mg/dl

 

65

 

66

 

78

 

77

 

68

 

70

 

Calcium = 8.4-10.2 mg/dl

 

83

 

84

 

79

 

80

 

75

 

75

 

Hospitalization days(2)

 

9.4

 

9.4

 

9.5

 

9.4

 

4.1

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

62

 

62

 

63

 

63

 

64

 

62

 

Average time on dialysis (in years)

 

4.0

 

4.0

 

5.3

 

5.2

 

4.7

 

4.7

 

Average body weight (in kg)

 

82

 

82

 

72

 

72

 

60

 

60

 

Prevalence of diabetes (in%)

 

58

 

59

 

28

 

28

 

38

 

38

 

 


(1) International standard BCR CRM470

(2) 12 months ending March 31

 

16



 

CONTACT

 

Fresenius Medical Care AG & Co. KGaA

Investor Relations

 

61352 Bad Homburg v. d. H.

Germany

www.fmc-ag.com

 

Oliver Maier

Head of Investor Relations &

Corporate Communications

Tel. +49 6172 609 2601

Fax +49 6172 609 2301

email: ir@fmc-ag.com

 

Published by

Fresenius Medical Care AG & Co. KGaA

Investor Relations

 

Annual reports, interim reports and further

information on the company is also available on our website.

Please visit us at www.fmc-ag.com

 

For printed material, please contact Investor Relations.

 


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