EX-99.1 2 a14-17688_1ex99d1.htm EX-99.1

Exhibit 99.1

 

July 31, 2014

 

INVESTOR

 

NEWS

 

Fresenius Medical Care reports

 

strong operating results for the second quarter 2014

 

and confirms guidance for full year 2014

 

 



 

·                  Second quarter shows accelerated growth

 

·                  Improvement of underlying operating performance driven by both the North American as well as International segment

 

·                  Implemented further initiatives in the second quarter to expand the care coordination activities

 

·                  Company remains on track to achieve full year guidance

 

Second quarter 2014 key figures:

 

Net revenue

 

$

3,835 million

 

+6

%

Operating income (EBIT)

 

$

556 million

 

+2

%

Net income1

 

$

234 million

 

-11

%

Net income adjusted2

 

$

252 million

 

-4

%

Basic earnings per share

 

$

0.77

 

-10

%

Adjusted earnings per share2

 

$

0.83

 

-3

%

 

First half 2014 key figures:

 

Net revenue

 

$

7,398 million

 

+5

%

Operating income (EBIT)

 

$

1,001 million

 

-4

%

Net income1

 

$

439 million

 

-10

%

Net income adjusted2

 

$

457 million

 

-6

%

Basic earnings per share

 

$

1.46

 

-9

%

Adjusted earnings per share2

 

$

1.52

 

-5

%

 

“Rice Powell, chief executive officer of Fresenius Medical Care stated: “The second quarter showed sequentially enhanced revenue growth and improved strong operating performance. We expect the organic growth to continue in the second half of the year and are confident to meet our guidance for the full year as well as our cost savings target of up to $60 million before tax for 2014. With our recent acquisitions of Sound Physicians and MedSpring Urgent Care we made important steps in our strategy of expanding our service network to achieve excellent patient care in a more coordinated and integrated model.”

 


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

 

2  adjusted for an unfavorable tax impact of USD 18 million in the second quarter of 2014

 

2



 

Second quarter 2014

 

Revenue

 

Net revenue for the second quarter of 2014 increased by 6% to $3,835 million (+7% at constant currency) compared to the second quarter of 2013. Organic revenue growth worldwide was 5%. Dialysis services revenue grew by 7% to $2,949 million (+8% at constant currency) and dialysis product revenue increased by 2% to $886 million (+1% at constant currency) compared to the second quarter of 2013.

 

North America revenue for the second quarter of 2014 increased by 6% to $2,521 million. Organic revenue growth was 4%. Dialysis services revenue grew by 7% to $2,316 million with a same store treatment growth of 3.3%. Dialysis product revenue decreased by 6% to $205 million.

 

International revenue increased by 6% to $1,297 million (+7% at constant currency). Organic revenue growth was 5%. Dialysis services revenue increased by 8% to $633 million (+12% at constant currency). Dialysis product revenue increased by 3% to $664 million (+3% at constant currency).

 

Earnings

 

Operating income (EBIT) for the second quarter of 2014 increased by 2% to $556 million compared to $544 million in the second quarter of 2013. Operating income for North America increased by 3% in the second quarter of 2014 to $401 million compared to $391 million in the second quarter of 2013. In the International segment, operating income for the second quarter of 2014 increased by 11% to $243 million compared to $218 million in the second quarter of 2013.

 

Net interest expense for the second quarter of 2014 was $98 million, compared to $103 million in the second quarter of 2013.

 

Income tax expense was $177 million for the second quarter of 2014 which translates into an effective tax rate of 38.7%. This compares to income tax expense of $144 million and a tax rate of 32.6% for the second quarter of 2013. The tax rate in the second quarter of 2014 was influenced by a special tax impact which

 

3



 

resulted in an expense of $18 million in the second quarter of 2014. On an adjusted basis the tax rate for the second quarter of 2014 was 34.8%. For the full year, the company expects a tax rate of around 34%.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2014 was $234 million, a decrease of 11% compared to the corresponding number of $263 million for the second quarter of 2013. On an adjusted basis net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2014 was $252 million.

 

Basic earnings per share (EPS) for the second quarter of 2014 was $0.77, a decrease of 10% compared to the corresponding number for the second quarter of 2013. On an adjusted basis EPS for the second quarter of 2014 was $0.83. The weighted average number of shares outstanding for the second quarter of 2014 was approximately 301.8 million shares, compared to 306.3 million shares for the second 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.

 

Cash flow

 

In the second quarter of 2014, the company generated $449 million in net cash provided by operating activities, a decrease of 14% compared to the corresponding figure of last year and representing 12% of revenue.

 

A total of $218 million was spent for capital expenditures, net of disposals. Free cash flow was $231 million compared to $352 million in the second quarter of 2013.

 

A total of $297 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$66 million, compared to $339 million in the second quarter of 2013.

 

4



 

First half 2014

 

Revenue and earnings

 

Net revenue for the first half of 2014 increased by 5% to $7,398 million (+6% at constant currency) compared to the first half of 2013. Organic revenue growth worldwide was 4%.

 

Operating income (EBIT) for the first half of 2014 decreased by 4% to $1,001 million compared to $1,038 million in the first half of 2013.

 

Net interest expense for the first half of 2014 was $195 million, compared to $207 million in the first half of 2013.

 

Income tax expense for the first half of 2014 was $278 million which translates into an effective tax rate of 34.5%. This compares to income tax expense of $273 million and a tax rate of 32.8% for the first half of 2013. On an adjusted basis the tax rate for the first half of 2014 was 32.3%. For the full year, the company expects a tax rate of around 34%.

 

For the first half of 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $439 million, down by 10% from the corresponding number of $488 million for the first half of 2013. On an adjusted basis net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first half of 2014 was $457 million.

 

In the first half of 2014 basic earnings per share (EPS) was $1.46, a decrease of 9% compared to the corresponding number for the first half of 2013. On an adjusted basis EPS for the first half of 2014 was $1.52. The weighted average number of shares outstanding during the first half of 2014 was approximately 301.6 million shares.

 

Cash flow

 

In the first half of 2014, the company generated $562 million in net cash provided by operating activities compared to $841 million for the same period in 2013, representing 8% of revenue.

 

A total of $415 million was spent for capital expenditures, net of disposals. Free cash flow for the first half of 2014 was $147 million compared to $522 million in the first half of 2013.

 

5



 

A total of $432 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$285 million, compared to $438 million in the first half of 2013.

 

Employees

 

As of June 30, 2014, Fresenius Medical Care had 94,401 employees (full-time equivalents) worldwide, compared to 87,944 employees at the end of June 2013. This increase of more than 6,400 employees was attributable to our continued organic growth as well as to acquisitions.

 

Balance sheet structure

 

The company´s total assets were $24,145 million (Dec. 31, 2013: $23,120 million), an increase of 4%. Current assets increased by 8% to $6,805 million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,340 million (Dec. 31, 2013: $16,833 million), an increase of 3%. Total equity increased by 2% to $9,650 million (Dec. 31, 2013: $9,485 million). The equity ratio was 40% as compared to 41% at the end of 2013. Total debt was $9,139 million (Dec. 31, 2013: $8,417 million). As of June 30, 2014, the debt/EBITDA ratio was 3.1 (Dec. 31, 2013: 2.8).

 

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

 

Strategic investments in Care Coordination

 

Fresenius Medical Care has entered into an agreement to invest approximately $600 million in Sound Inpatient Physicians Inc. to become majority shareholder in a network of more than 1,000 physician partners providing care in over 100 hospitals and post-acute care centers across the United States. The transaction of Sound Inpatient Physicians Inc. has been closed in July 2014.

 

6



 

Fresenius Medical Care also acquired MedSpring Urgent Care Centers, with operations in Illinois and Texas. MedSpring’s 14 urgent care centers provide high-quality primary care and customer service.

 

Thereby the company executes on the strategy disclosed earlier this year to invest in care coordination around dialysis. The investment clearly advances the commitment to address the full spectrum of care for chronically ill patients.

 

Outlook

 

The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. This outlook excludes revenue of about $500 million from acquisitions.

 

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged 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. Reflecting mainly the latest acquisitions the company now expects an acquisition spending of around $1.0 billion for fiscal year 2014 (previously $400 million). As a consequence the debt/EBITDA ratio is expected to be around 3.0 by the end of 2014.

 

Conference call

 

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter 2014 on Thursday, July 31, 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.

 

 

7



 

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 3,335 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 280,942 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.

 

8



 

Statement of earnings

 

 

 

Three months ended
 June 30

 

Six months ended
 June 30

 

in US$ million, except share data, unaudited

 

2014

 

2013

 

Change

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dialysis care revenue

 

3,014

 

2,811

 

7.2

%

5,859

 

5,553

 

5.5

%

Less: patient service bad debt provision

 

65

 

68

 

-4.5

%

128

 

131

 

-2.7

%

Net dialysis care revenue

 

2,949

 

2,743

 

7.5

%

5,731

 

5,422

 

5.7

%

Dialysis products revenue

 

886

 

870

 

1.9

%

1,667

 

1,654

 

0.8

%

Total net revenue

 

3,835

 

3,613

 

6.2

%

7,398

 

7,076

 

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

2,624

 

2,455

 

6.9

%

5,104

 

4,808

 

6.2

%

Gross profit

 

1,211

 

1,158

 

4.6

%

2,294

 

2,268

 

1.1

%

Selling, general and administrative

 

631

 

595

 

5.9

%

1,250

 

1,187

 

5.3

%

Gain on sale of dialysis clinics

 

(0

)

(8

)

-97.1

%

(0

)

(9

)

-97.4

%

Research and development

 

31

 

31

 

-0.7

%

61

 

61

 

-0.9

%

Income from equity method investees

 

(7

)

(4

)

35.2

%

(18

)

(9

)

100.5

%

Operating income (EBIT)

 

556

 

544

 

2.2

%

1,001

 

1,038

 

-3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(13

)

(7

)

93.9

%

(28

)

(17

)

64.2

%

Interest expense

 

111

 

110

 

1.5

%

223

 

224

 

-0.7

%

Interest expense, net

 

98

 

103

 

-4.5

%

195

 

207

 

-6.1

%

Income before taxes

 

458

 

441

 

3.8

%

806

 

831

 

-2.9

%

Income tax expense

 

177

 

144

 

23.5

%

278

 

273

 

2.2

%

Net income

 

281

 

297

 

-5.7

%

528

 

558

 

-5.3

%

Less: Net income attributable to noncontrolling interests

 

47

 

34

 

33.9

%

89

 

70

 

27.6

%

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

 

234

 

263

 

-11.0

%

439

 

488

 

-10.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

556

 

544

 

2.2

%

1,001

 

1,038

 

-3.5

%

Depreciation and amortization

 

169

 

159

 

6.4

%

336

 

315

 

6.7

%

EBITDA

 

725

 

703

 

3.2

%

1,337

 

1,353

 

-1.1

%

EBITDA margin

 

18.9

%

19.5

%

 

 

18.1

%

19.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

301,781,895

 

302,409,369

 

 

 

301,637,274

 

302,590,288

 

 

 

Preference shares

 

 

3,842,900

 

 

 

 

3,907,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.77

 

$

0.86

 

-9.7

%

$

1.46

 

$

1.59

 

-8.6

%

Basic earnings per ADS

 

$

0.39

 

$

0.43

 

-9.7

%

$

0.73

 

$

0.80

 

-8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

68.4

%

67.9

%

 

 

69.0

%

68.0

%

 

 

Gross profit

 

31.6

%

32.1

%

 

 

31.0

%

32.0

%

 

 

Operating income (EBIT)

 

14.5

%

15.1

%

 

 

13.5

%

14.7

%

 

 

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

 

6.1

%

7.3

%

 

 

5.9

%

6.9

%

 

 

 

9



 

Segment and other information

 

 

 

Three months ended
 June 30

 

Six months ended
 June 30

 

unaudited

 

2014

 

2013

 

Change

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in US$ million

 

3,835

 

3,613

 

6.2

%

7,398

 

7,076

 

4.5

%

Operating income (EBIT) in US$ million

 

556

 

544

 

2.2

%

1,001

 

1,038

 

-3.5

%

Operating income margin in %

 

14.5

%

15.1

%

 

 

13.5

%

14.7

%

 

 

Days sales outstanding (DSO)

 

 

 

 

 

 

 

73

 

76

 

 

 

Employees (full-time equivalents)

 

 

 

 

 

 

 

94,401

 

87,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in US$ million

 

2,521

 

2,375

 

6.1

%

4,914

 

4,662

 

5.4

%

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

 

401

 

391

 

2.6

%

736

 

757

 

-2.7

%

Operating income margin in % (1)

 

15.9

%

16.4

%

 

 

15.0

%

16.2

%

 

 

Revenue per treatment in US$

 

357

 

347

 

2.9

%

356

 

349

 

2.0

%

Cost per treatment in US$

 

294

 

286

 

3.1

%

297

 

287

 

3.4

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

54

 

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per treatment in US$

 

365

 

355

 

2.8

%

364

 

357

 

2.0

%

Cost per treatment in US$

 

300

 

291

 

3.2

%

303

 

293

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in US$ million

 

1,297

 

1,228

 

5.6

%

2,458

 

2,397

 

2.5

%

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

 

243

 

218

 

11.2

%

423

 

410

 

3.3

%

Operating income margin in % (1)

 

18.7

%

17.8

%

 

 

17.2

%

17.1

%

 

 

Revenue per treatment in US$

 

162

 

159

 

1.6

%

159

 

161

 

-1.3

%

Growth at constant currency

 

5.9

%

2.4

%

 

 

4.3

%

2.7

%

 

 

Days sales outstanding (DSO)

 

 

 

 

 

 

 

107

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in US$ million

 

17

 

10

 

92.2

%

26

 

17

 

59.0

%

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

 

(88

)

(65

)

34.8

%

(158

)

(129

)

22.7

%

 


(1) Certain items, in the net aggregate amount of $6,364 and $ 11,370 for the three and six months ended June 30, 2013, respectively, 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, as applicable, to conform to the current year’s presentation.

 

10



 

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

 

 

 

Three months ended
 June 30

 

Six months ended
 June 30

 

in US$ million, unaudited

 

2014

 

2013

 

2014

 

2013

 

Segment information North America (1)

 

 

 

 

 

 

 

 

 

Net revenue

 

2,521

 

2,375

 

 

 

 

 

Costs of revenue and research and development

 

1,761

 

1,647

 

 

 

 

 

Selling, general and administrative

 

363

 

348

 

 

 

 

 

Gain on sale of dialysis clinics

 

0

 

(8

)

 

 

 

 

Income from equity method investees

 

(4

)

(3

)

 

 

 

 

Costs of revenue and operating expenses

 

2,120

 

1,984

 

 

 

 

 

Operating income (EBIT)

 

401

 

391

 

 

 

 

 

Operating income margin

 

15.9

%

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Total EBITDA

 

 

 

 

 

1,337

 

1,353

 

Interest expense, net

 

 

 

 

 

(195

)

(207

)

Income tax expense

 

 

 

 

 

(278

)

(273

)

Change in working capital and other non-cash items

 

 

 

 

 

(302

)

(32

)

Net cash provided by operating activities

 

 

 

 

 

562

 

841

 

 

 

 

 

 

 

 

 

 

 

Annualized EBITDA

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

 

 

 

 

2,220

 

2,164

 

Depreciation and amortization

 

 

 

 

 

669

 

624

 

Non-cash charges

 

 

 

 

 

51

 

79

 

Annualized EBITDA

 

 

 

 

 

2,940

 

2,867

 

 


(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, as applicable, 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.

 

11



 

Balance sheet

 

 

 

June 30

 

December 31

 

in US$ million, except debt/EBITDA ratio

 

2014

 

2013

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

6,805

 

6,287

 

Intangible assets

 

12,602

 

12,416

 

Other non-current assets

 

4,738

 

4,417

 

Total assets

 

24,145

 

23,120

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

3,687

 

3,554

 

Long-term liabilities

 

10,136

 

9,433

 

Noncontrolling interests subject to put provisions

 

672

 

648

 

Total equity

 

9,650

 

9,485

 

Total liabilities and equity

 

24,145

 

23,120

 

 

 

 

 

 

 

Equity/assets ratio

 

40

%

41

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term borrowings

 

198

 

97

 

Short-term borrowings from related parties

 

162

 

62

 

Current portion of long-term debt and capital lease obligations

 

335

 

511

 

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

 

8,444

 

7,747

 

Total debt

 

9,139

 

8,417

 

 

 

 

 

 

 

Debt/EBITDA ratio

 

3.1

 

2.8

 

 

12



 

Cash flow statement

 

 

 

Three months ended
 June 30

 

Six months ended
 June 30

 

in US$ million, unaudited

 

2014

 

2013

 

2014

 

2013

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

281

 

297

 

528

 

558

 

Depreciation / amortization

 

169

 

159

 

336

 

315

 

Change in working capital and other non-cash items

 

(1

)

69

 

(302

)

(32

)

Net cash provided by operating activities

 

449

 

525

 

562

 

841

 

In percent of revenue

 

11.7

%

14.5

%

7.6

%

11.9

%

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(220

)

(186

)

(419

)

(334

)

Proceeds from sale of property, plant and equipment

 

2

 

13

 

4

 

15

 

Capital expenditures, net

 

(218

)

(173

)

(415

)

(319

)

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

231

 

352

 

147

 

522

 

In percent of revenue

 

6.0

%

9.8

%

2.0

%

7.4

%

 

 

 

 

 

 

 

 

 

 

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

 

(298

)

(30

)

(435

)

(102

)

Proceeds from divestitures

 

1

 

17

 

3

 

18

 

Acquisitions, net of divestitures

 

(297

)

(13

)

(432

)

(84

)

Free cash flow after investing activities

 

(66

)

339

 

(285

)

438

 

 

13



 

Revenue development

 

in US$ million, unaudited

 

2014

 

2013

 

Change

 

Change
 in cc

 

Organic
growth

 

Same store
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

3,835

 

3,613

 

6.2

%

6.7

%

4.5

%

 

 

Dialysis products

 

886

 

870

 

1.9

%

1.2

%

1.1

%

 

 

Net dialysis care

 

2,949

 

2,743

 

7.5

%

8.5

%

5.6

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,521

 

2,375

 

6.1

%

6.1

%

4.1

%

 

 

Dialysis products

 

205

 

218

 

-6.2

%

-6.2

%

-6.1

%

 

 

Net dialysis care

 

2,316

 

2,157

 

7.4

%

7.4

%

5.1

%

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,297

 

1,228

 

5.6

%

7.2

%

4.9

%

 

 

Dialysis products

 

664

 

642

 

3.5

%

2.5

%

2.4

%

 

 

Net dialysis care

 

633

 

586

 

7.9

%

12.4

%

7.7

%

4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional development

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,521

 

2,375

 

6.1

%

6.1

%

4.1

%

 

 

Europe/Middle East/Africa

 

790

 

755

 

4.6

%

2.0

%

2.6

%

 

 

Latin America

 

198

 

211

 

-6.0

%

10.5

%

8.6

%

 

 

Asia-Pacific

 

309

 

262

 

17.6

%

19.7

%

8.5

%

 

 

Corporate

 

17

 

10

 

92.2

%

87.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

7,398

 

7,076

 

4.5

%

5.5

%

3.9

%

 

 

Dialysis products

 

1,667

 

1,654

 

0.8

%

0.8

%

0.7

%

 

 

Net dialysis care

 

5,731

 

5,422

 

5.7

%

7.0

%

4.9

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

4,914

 

4,662

 

5.4

%

5.4

%

3.8

%

 

 

Dialysis products

 

397

 

401

 

-1.2

%

-1.2

%

-1.1

%

 

 

Net dialysis care

 

4,517

 

4,261

 

6.0

%

6.0

%

4.2

%

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

2,458

 

2,397

 

2.5

%

5.4

%

3.7

%

 

 

Dialysis products

 

1,244

 

1,236

 

0.6

%

0.7

%

0.5

%

 

 

Net dialysis care

 

1,214

 

1,161

 

4.6

%

10.4

%

7.2

%

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional development

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

4,914

 

4,662

 

5.4

%

5.4

%

3.8

%

 

 

Europe/Middle East/Africa

 

1,522

 

1,471

 

3.5

%

1.8

%

1.6

%

 

 

Latin America

 

384

 

413

 

-6.9

%

11.6

%

9.6

%

 

 

Asia-Pacific

 

552

 

513

 

7.5

%

10.8

%

5.3

%

 

 

Corporate

 

26

 

17

 

59.0

%

54.8

%

 

 

 

 

 


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.

 

14



 

Key figures product business

 

in US$ million, unaudited

 

2014

 

2013

 

Change

 

Change in cc

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30

 

 

 

 

 

 

 

 

 

Total product revenue

 

1,229

 

1,196

 

2.7

%

2.7

%

Less internal revenue

 

(343

)

(326

)

4.9

%

6.5

%

Total external revenue

 

886

 

870

 

1.9

%

1.2

%

 

 

 

 

 

 

 

 

 

 

North America

 

420

 

423

 

-0.8

%

-0.8

%

Less internal revenue

 

(215

)

(205

)

5.0

%

5.0

%

Total North America external revenue

 

205

 

218

 

-6.2

%

-6.2

%

 

 

 

 

 

 

 

 

 

 

International

 

792

 

765

 

3.6

%

3.6

%

Less internal revenue

 

(128

)

(123

)

4.5

%

8.9

%

Total International external revenue

 

664

 

642

 

3.5

%

2.5

%

 

 

 

 

 

 

 

 

 

 

Six months ended June 30

 

 

 

 

 

 

 

 

 

Total product revenue

 

2,319

 

2,275

 

1.9

%

2.5

%

Less internal revenue

 

(652

)

(621

)

5.1

%

7.2

%

Total external revenue

 

1,667

 

1,654

 

0.8

%

0.8

%

 

 

 

 

 

 

 

 

 

 

North America

 

806

 

792

 

1.8

%

1.8

%

Less internal revenue

 

(409

)

(391

)

4.9

%

4.9

%

Total North America external revenue

 

397

 

401

 

-1.2

%

-1.2

%

 

 

 

 

 

 

 

 

 

 

International

 

1,487

 

1,466

 

1.4

%

2.4

%

Less internal revenue

 

(243

)

(230

)

5.4

%

11.2

%

Total International external revenue

 

1,244

 

1,236

 

0.6

%

0.7

%

 

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.

 

15



 

Key figures service business

 

 

 

Six months ended June 30, 2014

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,335

 

4

%

36

 

280,942

 

6

%

20,632,860

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,159

 

3

%

26

 

173,557

 

3

%

12,992,537

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,176

 

6

%

10

 

107,385

 

12

%

7,640,323

 

6

%

Europe/Middle East/Africa

 

634

 

1

%

5

 

52,905

 

5

%

3,964,454

 

5

%

Latin America

 

231

 

1

%

3

 

29,507

 

6

%

2,260,929

 

6

%

Asia-Pacific

 

311

 

24

%

2

 

24,973

 

41

%

1,414,940

 

8

%

 

16



 

Quality data

 

 

 

North America

 

Europe/Middle East/
Africa

 

Asia-Pacific

 

in % of patients

 

Q2 2014

 

Q1 2014

 

Q2 2014

 

Q1 2014

 

Q2 2014

 

Q1 2014

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

97

 

97

 

96

 

96

 

97

 

97

 

No catheter (> 90 days)

 

83

 

83

 

83

 

83

 

92

 

92

 

Hemoglobin = 10-12 g/dl

 

74

 

73

 

63

 

60

 

59

 

58

 

Hemoglobin = 10-13 g/dl

 

79

 

78

 

77

 

77

 

67

 

66

 

Albumin > 3.5 g/dl1)

 

82

 

85

 

89

 

89

 

91

 

91

 

Phosphate < 5.5 mg/dl

 

63

 

65

 

77

 

78

 

71

 

68

 

Calcium = 8.4-10.2 mg/dl

 

84

 

83

 

78

 

79

 

74

 

75

 

Hospitalization days

 

9.4

 

9.4

 

9.4

 

9.5

 

4.2

 

4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

62

 

62

 

63

 

63

 

64

 

64

 

Average time on dialysis (in years)

 

4.0

 

4.0

 

5.4

 

5.3

 

4.8

 

4.7

 

Average body weight (in kg)

 

82

 

82

 

72

 

72

 

60

 

60

 

Prevalence of diabetes (in%)

 

60

 

58

 

28

 

28

 

39

 

38

 

 


1) International standard BCR CRM470

 

17



 

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

 

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