EX-99.2 3 a16-8776_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE RESULTS FOR THE FIRST QUARTER 2016

May 3, 2016

 


 

Investor Relations

phone: +49 6172 609 2525

fax: +49 6172 609 2301

email: ir@fmc-ag.com

 

Content:

 

Statement of earnings

 

page 1

 

 

 

Segment information

 

page 2

 

 

 

Balance Sheet

 

page 3

 

 

 

Cash flow

 

page 4

 

 

 

Revenue development

 

page 5

 

 

 

Key metrics

 

page 7

 

 

 

Quality data

 

page 9

 

 

 

Reconciliation

 

page 10

 

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.

 

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 



 

Statement of earnings

 

 

 

Three months ended
March 31

 

in US$ million, except share data, unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Health Care revenue

 

3,525

 

3,289

 

7.2

%

Less: patient service bad debt provision

 

111

 

107

 

3.7

%

Net Health Care revenue

 

3,414

 

3,182

 

7.3

%

Dialysis products revenue

 

791

 

778

 

1.7

%

Total net revenue

 

4,205

 

3,960

 

6.2

%

 

 

 

 

 

 

 

 

Costs of revenue

 

2,887

 

2,776

 

4.0

%

Gross profit

 

1,318

 

1,184

 

11.3

%

Selling, general and administrative

 

760

 

655

 

15.8

%

Research and development

 

37

 

31

 

21.1

%

Income from equity method investees

 

(19

)

(6

)

199.3

%

Operating income (EBIT)

 

540

 

504

 

7.1

%

 

 

 

 

 

 

 

 

Interest income

 

(11

)

(60

)

-81.5

%

Interest expense

 

116

 

162

 

-28.2

%

Interest expense, net

 

105

 

102

 

3.1

%

Income before taxes

 

435

 

402

 

8.1

%

Income tax expense

 

138

 

138

 

0.3

%

Net income

 

297

 

264

 

12.2

%

Less: Net income attributable to noncontrolling interests

 

69

 

54

 

25.1

%

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

 

228

 

210

 

8.8

%

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

540

 

504

 

7.1

%

Depreciation and amortization

 

182

 

176

 

3.4

%

EBITDA

 

722

 

680

 

6.1

%

EBITDA margin

 

17.2

%

17.2

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

305,325,185

 

303,683,075

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

0.75 €

 

0.69 €

 

8.2

%

Basic earnings per ADS

 

0.37 €

 

0.35 €

 

8.2

%

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

Costs of revenue

 

68.7

%

70.1

%

 

 

Gross profit

 

31.3

%

29.9

%

 

 

Operating income (EBIT)

 

12.8

%

12.7

%

 

 

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

 

5.4

%

5.3

%

 

 

 

1



 

Segment information

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Revenue in US$ million

 

4,205

 

3,960

 

6.2

%

Operating income (EBIT) in US$ million

 

540

 

504

 

7.1

%

Operating income margin in %

 

12.8

%

12.7

%

 

 

Delivered EBIT in US$ million

 

471

 

450

 

4.9

%

Days sales outstanding (DSO)

 

74

 

71

 

 

 

Employees (full-time equivalents)

 

104,687

 

101,543

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

Revenue in US$ million

 

3,044

 

2,771

 

9.8

%

Operating income (EBIT) in US$ million

 

436

 

340

 

28.3

%

Operating income margin in %

 

14.3

%

12.3

%

 

 

Delivered EBIT in US$ million

 

370

 

288

 

28.6

%

Days sales outstanding (DSO)

 

60

 

52

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$

 

348

 

341

 

1.8

%

Cost per dialysis treatment in US$

 

281

 

288

 

-2.4

%

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

Revenue in US$ million

 

1,158

 

1,180

 

-1.8

%

Operating income (EBIT) in US$ million

 

206

 

244

 

-15.5

%

Operating income margin in %

 

17.8

%

20.6

%

 

 

Delivered EBIT in US$ million

 

203

 

242

 

-15.6

%

Days sales outstanding (DSO)

 

110

 

114

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

Revenue in US$ million

 

631

 

629

 

0.3

%

Operating income (EBIT) in US$ million

 

130

 

141

 

-8.1

%

Operating income margin in %

 

20.6

%

22.5

%

 

 

Delivered EBIT in US$ million

 

129

 

141

 

-8.1

%

Days sales outstanding (DSO)

 

104

 

110

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

Revenue in US$ million

 

374

 

353

 

6.0

%

Operating income (EBIT) in US$ million

 

65

 

85

 

-23.0

%

Operating income margin in %

 

17.4

%

23.9

%

 

 

Delivered EBIT in US$ million

 

63

 

83

 

-23.2

%

Days sales outstanding (DSO)

 

104

 

112

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

Revenue in US$ million

 

153

 

198

 

-22.6

%

Operating income (EBIT) in US$ million

 

11

 

18

 

-39.1

%

Operating income margin in %

 

7.1

%

9.0

%

 

 

Delivered EBIT in US$ million

 

11

 

18

 

-39.2

%

Days sales outstanding (DSO)

 

148

 

133

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

Revenue in US$ million

 

3

 

9

 

-62.8

%

Operating income (EBIT) in US$ million

 

(102

)

(80

)

28.6

%

Delivered EBIT in US$ million

 

(102

)

(80

)

28.5

%

 

2



 

Balance sheet

 

 

 

March 31

 

December 31

 

in US$ million, except debt/EBITDA ratio

 

2016

 

2015

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

7,147

 

6,768

 

Goodwill and Intangible assets

 

13,984

 

13,863

 

Other non-current assets

 

4,936

 

4,734

 

Total assets

 

26,067

 

25,365

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

4,448

 

4,149

 

Long-term liabilities

 

9,723

 

9,692

 

Noncontrolling interests subject to put provisions and other temporary equity

 

1,088

 

1,028

 

Total equity

 

10,808

 

10,496

 

Total liabilities and equity

 

26,067

 

25,365

 

 

 

 

 

 

 

Equity/assets ratio

 

41

%

41

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term debt

 

349

 

109

 

Short-term debt from related parties

 

64

 

19

 

Current portion of long-term debt and capital lease obligations

 

678

 

664

 

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

 

7,848

 

7,854

 

Total debt

 

8,939

 

8,646

 

 

 

 

 

 

 

Debt/EBITDA ratio

 

2.8

 

2.8

 

 

In accordance with ASU 2015-17 (Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes) as of December 31, 2015 deferred taxes previously recorded in current assets and liabilities have been reclassified to noncurrent assets and liabilities in the amount of US$216 million and US$36 million, respectively.  As a result of deferred tax netting, noncurrent assets and liabilities were then adjusted in the amount of US$168 million.

 

3



 

Cash flow statement

 

 

 

Three months ended
March 31

 

in US$ million, unaudited

 

2016

 

2015

 

Operating activities

 

 

 

 

 

Net income

 

297

 

264

 

Depreciation / amortization

 

182

 

176

 

Change in working capital and other non-cash items

 

(299

)

7

 

Net cash provided by operating activities

 

180

 

447

 

In percent of revenue

 

4.3

%

11.3

%

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(250

)

(201

)

Proceeds from sale of property, plant and equipment

 

4

 

4

 

Capital expenditures, net

 

(246

)

(197

)

 

 

 

 

 

 

Free cash flow

 

(66

)

250

 

In percent of revenue

 

-1.6

%

6.3

%

 

 

 

 

 

 

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

 

(91

)

(22

)

Proceeds from divestitures

 

 

11

 

Acquisitions and investments, net of divestitures

 

(91

)

(11

)

Free cash flow after investing activities

 

(157

)

239

 

 

4



 

Revenue development

 

in US$ million, unaudited

 

2016

 

2015

 

Change

 

Change
at cc

 

Organic
growth

 

Same market
treatment
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,205

 

3,960

 

6.2

%

8.7

%

7.3

%

 

 

Net Health Care

 

3,414

 

3,182

 

7.3

%

9.3

%

7.3

%

4.0

%

Dialysis products

 

791

 

778

 

1.7

%

6.5

%

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,044

 

2,771

 

9.8

%

9.8

%

7.4

%

 

 

Net Health Care

 

2,832

 

2,571

 

10.1

%

10.1

%

7.5

%

4.0

%

Thereof Net Care Coordination revenue

 

522

 

434

 

20.2

%

20.2

%

16.9

%

 

 

Thereof Net Dialysis Care revenue

 

2,310

 

2,137

 

8.1

%

8.1

%

5.6

%

4.0

%

Dialysis products

 

212

 

200

 

5.8

%

5.8

%

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

1,158

 

1,180

 

-1.8

%

6.7

%

7.4

%

 

 

Net Health Care

 

582

 

611

 

-4.7

%

5.7

%

6.6

%

4.0

%

Dialysis products

 

576

 

569

 

1.3

%

7.7

%

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

631

 

629

 

0.3

%

5.2

%

4.3

%

 

 

Net Health Care

 

301

 

301

 

0.0

%

5.8

%

3.5

%

3.8

%

Dialysis products

 

330

 

328

 

0.5

%

4.6

%

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

374

 

353

 

6.0

%

10.1

%

10.8

%

 

 

Net Health Care

 

168

 

164

 

2.5

%

2.8

%

4.2

%

6.7

%

Dialysis products

 

206

 

189

 

9.1

%

16.4

%

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

153

 

198

 

-22.6

%

5.4

%

11.6

%

 

 

Net Health Care

 

113

 

146

 

-22.5

%

8.7

%

16.1

%

2.2

%

Dialysis products

 

40

 

52

 

-22.7

%

-4.0

%

-0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

3

 

9

 

-62.8

%

-62.0

%

 

 

 

 

 


1 same market treatment 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.

 

5



 

Additional information North America Segment

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

Net revenue in US$ million

 

522

 

434

 

20.2

%

Operating income (EBIT) in US$ million

 

10

 

15

 

-33.0

%

Operating income margin in %

 

2.0

%

3.5

%

 

 

Delivered EBIT in US$ million

 

2

 

6

 

-72.0

%

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

Net revenue in US$ million

 

2,522

 

2,337

 

7.9

%

Operating income (EBIT) in US$ million

 

426

 

325

 

31.2

%

Operating income margin in %

 

16.9

%

13.9

%

 

 

Delivered EBIT in US$ million

 

368

 

282

 

30.7

%

 

6



 

Key metrics Care Coordination

 

 

 

Three months ended
March 31

 

unaudited

 

2016

 

2015

 

Growth in %

 

North America

 

 

 

 

 

 

 

Member months under medical cost management1)

 

93,825

 

4,305

 

2079

%

Medical cost under management (in US$ million)1)

 

723

 

30

 

2282

%

Care Coordination patient encounters

 

1,307,076

 

1,272,047

 

3

%

 


1) The 2016 metrics may be understated due to a physician mapping issue related to the BPCI program within a CMS system which has not yet been resolved. Additionally, data presented for the metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.

 

7



 

Key metrics Dialysis Care Services

 

 

 

Three months ended March 31, 2016

 

unaudited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,432

 

1

%

22

 

294,043

 

2

%

11,273,342

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,224

 

2

%

10

 

182,808

 

3

%

7,053,114

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

658

 

2

%

4

 

55,197

 

5

%

2,095,610

 

5

%

Asia-Pacific

 

323

 

2

%

6

 

26,713

 

4

%

970,296

 

6

%

Latin America

 

227

 

-8

%

2

 

29,325

 

-8

%

1,154,322

 

-6

%

 

8



 

Quality data

 

 

 

North America

 

EMEA

 

Latin America

 

Asia-Pacific

 

in % of patients

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

Q1 2016

 

Q4 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

98

 

98

 

96

 

96

 

92

 

92

 

97

 

97

 

No catheter (> 90 days)

 

85

 

84

 

82

 

82

 

82

 

83

 

91

 

91

 

Hemoglobin = 10-12 g/dl

 

72

 

72

 

78

 

77

 

52

 

52

 

58

 

60

 

Hemoglobin = 10-13 g/dl

 

77

 

78

 

77

 

77

 

68

 

69

 

66

 

68

 

Albumin > 3.5 g/dl1)

 

82

 

81

 

91

 

92

 

90

 

90

 

89

 

89

 

Phosphate < 5.5 mg/dl

 

64

 

64

 

78

 

79

 

75

 

75

 

70

 

72

 

Calcium = 8.4-10.2 mg/dl

 

84

 

84

 

74

 

77

 

76

 

75

 

74

 

75

 

Hospitalization days2)

 

10.0

 

10.0

 

9.4

 

9.4

 

3.5

 

3.5

 

4.3

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

62

 

62

 

64

 

64

 

59

 

58

 

64

 

64

 

Average time on dialysis (in years)

 

3.9

 

4.0

 

5.6

 

5.6

 

5.1

 

5.0

 

5.0

 

5.0

 

Average body weight (in kg)

 

83

 

82

 

73

 

72

 

68

 

68

 

61

 

60

 

Prevalence of diabetes (in%)

 

61

 

61

 

31

 

31

 

25

 

25

 

41

 

41

 

 


1) International standard BCR CRM470

 

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

 

2016

 

2015

 

Delivered EBIT reconciliation

 

 

 

 

 

Total

 

 

 

 

 

Operating income (EBIT)

 

540

 

504

 

less noncontrolling interests

 

(69

)

(54

)

Delivered EBIT

 

471

 

450

 

 

 

 

 

 

 

North America

 

 

 

 

 

Operating income (EBIT)

 

436

 

340

 

less noncontrolling interests

 

(66

)

(52

)

Delivered EBIT

 

370

 

288

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

Operating income (EBIT)

 

10

 

15

 

less noncontrolling interests

 

(8

)

(9

)

Delivered EBIT

 

2

 

6

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

Operating income (EBIT)

 

426

 

325

 

less noncontrolling interests

 

(58

)

(43

)

Delivered EBIT

 

368

 

282

 

 

 

 

 

 

 

International

 

 

 

 

 

Operating income (EBIT)

 

206

 

244

 

less noncontrolling interests

 

(3

)

(2

)

Delivered EBIT

 

203

 

242

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

Operating income (EBIT)

 

130

 

141

 

less noncontrolling interests

 

(1

)

 

Delivered EBIT

 

129

 

141

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

Operating income (EBIT)

 

65

 

85

 

less noncontrolling interests

 

(2

)

(2

)

Delivered EBIT

 

63

 

83

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

Operating income (EBIT)

 

11

 

18

 

less noncontrolling interests

 

 

 

Delivered EBIT

 

11

 

18

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Operating income (EBIT)

 

(102

)

(80

)

less noncontrolling interests

 

 

 

Delivered EBIT

 

(102

)

(80

)

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA1)

 

 

 

 

 

Total EBITDA

 

722

 

680

 

Interest expense, net

 

(105

)

(102

)

Income tax expense

 

(138

)

(138

)

Change in working capital and other non-cash items

 

(299

)

7

 

Net cash provided by operating activities

 

180

 

447

 

 

 

 

 

 

 

Annualized EBITDA2)

 

 

 

 

 

Operating income (EBIT)

 

2,363

 

2,373

 

Depreciation and amortization

 

723

 

719

 

Non-cash charges

 

84

 

62

 

Annualized EBITDA

 

3,170

 

3,154

 

 


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

2) EBITDA: including largest acquisitions.

 

10