EX-99.2 3 a17-11748_2ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE RESULTS FOR THE FIRST QUARTER 2017

 

May 3, 2017

 

Investor Relations

phone: +49 6172 609 2525

fax: +49 6172 609 2301

email: ir@fmc-ag.com

 

Content:

 

 

 

 

 

Statement of earnings

 

page 2

Segment information

 

page 3

Balance sheet

 

page 4

Cash flow

 

page 5

Revenue development

 

page 6

Key metrics

 

page 7

Quality data

 

page 8

Reconciliation

 

page 9

Reconciliation one time PY

 

page 10

Remarks

 

page 11

 

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

 

1



 

Statement of earnings

 

 

 

Three months ended March 31

 

Change

 

in € million, except share data, unaudited

 

2017

 

2016

 

Change

 

at cc

 

 

 

 

 

 

 

 

 

 

 

Health Care Services

 

3,769

 

3,199

 

17.8

%

13.8

%

Health Care Products

 

779

 

717

 

8.5

%

5.8

%

Total revenue

 

4,548

 

3,916

 

16.1

%

12.4

%

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

2,956

 

2,622

 

12.8

%

8.9

%

Gross profit

 

1,592

 

1,294

 

22.9

%

19.4

%

Selling, general and administrative

 

924

 

780

 

18.3

%

14.7

%

Research and development

 

32

 

34

 

-6.6

%

-8.1

%

Income from equity method investees

 

(15

)

(17

)

-11.7

%

-11.8

%

Operating income (EBIT)

 

651

 

497

 

31.1

%

27.6

%

 

 

 

 

 

 

 

 

 

 

Interest income

 

(29

)

(10

)

185.3

%

186.7

%

Interest expense

 

121

 

106

 

15.0

%

12.7

%

Interest expense, net

 

92

 

96

 

-2.9

%

-5.6

%

Income before taxes

 

559

 

401

 

39.2

%

35.5

%

Income tax expense

 

182

 

126

 

44.2

%

40.5

%

Net income

 

377

 

275

 

36.8

%

33.3

%

Less: Net income attributable to noncontrolling interests

 

69

 

62

 

10.4

%

6.7

%

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

 

308

 

213

 

44.6

%

41.0

%

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

651

 

497

 

31.1

%

27.6

%

Depreciation and amortization

 

190

 

165

 

14.9

%

11.3

%

EBITDA

 

841

 

662

 

27.0

%

23.5

%

EBITDA margin

 

18.5

%

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

306,241,321

 

305,325,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

€ 1.01

 

€ 0.70

 

44.1

%

40.6

%

Basic earnings per ADS

 

€ 0.50

 

€ 0.35

 

44.1

%

40.6

%

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

Costs of revenue

 

65.0

%

66.9

%

 

 

 

 

Gross profit

 

35.0

%

33.1

%

 

 

 

 

Operating income (EBIT)

 

14.3

%

12.7

%

 

 

 

 

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

 

6.8

%

5.4

%

 

 

 

 

 

2



 

Segment information

 

 

 

Three months ended March 31

 

Change

 

unaudited

 

2017

 

2016

 

Change

 

at cc

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Revenue in € million

 

4,548

 

3,916

 

16.1

%

12.4

%

Operating income (EBIT) in € million

 

651

 

497

 

31.1

%

27.6

%

Operating income margin in %

 

14.3

%

12.7

%

 

 

 

 

Delivered EBIT in € million

 

582

 

435

 

34.0

%

30.6

%

Days sales outstanding (DSO)

 

73

 

74

 

 

 

 

 

Employees (full-time equivalents)

 

110,530

 

104,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

Revenue in € million

 

3,375

 

2,862

 

17.9

%

13.9

%

Operating income (EBIT) in € million

 

526

 

402

 

30.9

%

26.6

%

Operating income margin in %

 

15.6

%

14.0

%

 

 

 

 

Delivered EBIT in € million

 

459

 

342

 

34.5

%

30.2

%

Days sales outstanding (DSO)

 

60

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$

 

356

1)

348

 

2.2

%

n.a.

 

Cost per dialysis treatment in US$

 

290

 

281

 

2.9

%

n.a.

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

Revenue in € million

 

614

 

572

 

7.2

%

6.4

%

Operating income (EBIT) in € million

 

114

 

118

 

-3.0

%

-1.9

%

Operating income margin in %

 

18.7

%

20.6

%

 

 

 

 

Delivered EBIT in € million

 

114

 

117

 

-3.2

%

-2.1

%

Days sales outstanding (DSO)

 

102

 

104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

 

 

Revenue in € million

 

378

 

340

 

11.1

%

6.9

%

Operating income (EBIT) in € million

 

82

 

59

 

37.8

%

34.7

%

Operating income margin in %

 

21.7

%

17.5

%

 

 

 

 

Delivered EBIT in € million

 

80

 

58

 

38.1

%

35.1

%

Days sales outstanding (DSO)

 

97

 

104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

Revenue in € million

 

177

 

139

 

27.6

%

17.4

%

Operating income (EBIT) in € million

 

14

 

10

 

47.3

%

43.3

%

Operating income margin in %

 

8.1

%

7.0

%

 

 

 

 

Delivered EBIT in € million

 

14

 

10

 

47.0

%

43.0

%

Days sales outstanding (DSO)

 

134

 

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

Revenue in € million

 

4

 

3

 

61.2

%

61.1

%

Operating income (EBIT) in € million

 

(85

)

(92

)

-7.4

%

-8.2

%

Delivered EBIT in € million

 

(85

)

(92

)

-7.5

%

-8.3

%

 


1 Incl. The VA agreement revenue per dialysis treatment was $371.

 

3



 

Balance sheet

 

 

 

March 31

 

December 31

 

in € million, except net debt/EBITDA ratio

 

2017

 

2016

 

 

 

(unaudited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

7,077

 

6,884

 

Goodwill and Intangible assets

 

13,738

 

13,759

 

Other non-current assets

 

4,965

 

4,861

 

Total assets

 

25,780

 

25,504

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

5,377

 

5,299

 

Long-term liabilities

 

9,105

 

9,154

 

Total equity

 

11,298

 

11,051

 

Total liabilities and equity

 

25,780

 

25,504

 

 

 

 

 

 

 

Equity/assets ratio

 

44

%

43

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term debt

 

697

 

572

 

Short-term debt from related parties

 

119

 

3

 

Current portion of long-term debt and capital lease obligations

 

715

 

724

 

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

 

6,739

 

6,833

 

Total debt

 

8,270

 

8,132

 

Cash

 

671

 

709

 

Total net debt

 

7,599

 

7,423

 

 

 

 

 

 

 

Net debt/EBITDA

 

2.3

 

2.3

 

 

4



 

Cash flow statement

 

 

 

Three months ended
March 31

 

in € million, unaudited

 

2017

 

2016

 

Operating activities

 

 

 

 

 

Net income

 

377

 

275

 

Depreciation / amortization

 

190

 

165

 

Change in working capital and other non-cash items

 

(397

)

(277

)

Net cash provided by operating activities

 

170

 

163

 

In percent of revenue

 

3.7

%

4.2

%

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(197

)

(227

)

Proceeds from sale of property, plant and equipment

 

2

 

4

 

Capital expenditures, net

 

(195

)

(223

)

 

 

 

 

 

 

Free cash flow

 

(25

)

(60

)

In percent of revenue

 

-0.6

%

-1.5

%

 

 

 

 

 

 

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

 

(160

)

(83

)

Proceeds from divestitures

 

 

 

Acquisitions and investments, net of divestitures

 

(160

)

(83

)

Free cash flow after investing activities

 

(185

)

(143

)

 

5



 

Revenue development

 

in € million, unaudited

 

2017

 

2016

 

Change

 

Change
at cc

 

Organic
growth

 

Same market
treatment
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,548

 

3,916

 

16.1

%

12.4

%

8.4

%

 

 

Health Care Services

 

3,769

 

3,199

 

17.8

%

13.8

%

9.2

%

3.0

%

Health Care Products

 

779

 

717

 

8.5

%

5.8

%

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,375

 

2,862

 

17.9

%

13.9

%

9.5

%

 

 

Health Care Services

 

3,165

 

2,671

 

18.5

%

14.5

%

9.8

%

3.3

%2

Thereof Care Coordination revenue

 

691

 

499

 

38.6

%

33.9

%

27.1

%

 

 

Thereof Dialysis Care Services revenue

 

2,474

 

2,172

 

13.9

%

10.1

%

5.7

%

3.3

%2

Health Care Products

 

210

 

191

 

9.3

%

5.6

%

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

614

 

572

 

7.2

%

6.4

%

2.3

%

 

 

Health Care Services

 

303

 

273

 

10.9

%

9.2

%

3.2

%

3.9

%

Health Care Products

 

311

 

299

 

3.8

%

3.8

%

1.5

%

 

 

Thereof Dialysis Products

 

290

 

286

 

1.3

%

1.3

%

1.8

%

 

 

Thereof Non-Dialysis Products

 

21

 

13

 

61.8

%

61.8

%

-5.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

378

 

340

 

11.1

%

6.9

%

6.2

%

 

 

Health Care Services

 

169

 

153

 

10.8

%

5.1

%

3.6

%

3.8

%

Health Care Products

 

209

 

187

 

11.4

%

8.4

%

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

177

 

139

 

27.6

%

17.4

%

16.7

%

 

 

Health Care Services

 

132

 

102

 

29.1

%

21.6

%

20.4

%

2.5

%

Health Care Products

 

45

 

37

 

23.3

%

5.7

%

6.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

4

 

3

 

61.2

%

61.1

%

 

 

 

 

 


1 same market treatment growth = organic growth less price effects

2 U.S. (excl. Mexico), same market treatment growth North America: 2.6%

 

6



 

Key metrics North America segment

 

 

 

Three months ended March 31

 

unaudited

 

2017

 

2016

 

Change

 

Change
at cc

 

 

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

 

 

Revenue in € million

 

691

 

499

 

38.6

%

33.9

%

Operating income (EBIT) in € million

 

-1

 

11

 

-107.6

%

-107.3

%

Operating income margin in %

 

-0.1

%

2.2

%

 

 

 

 

Delivered EBIT in € million

 

-8

 

3

 

-342.9

%

-334.7

%

 

 

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

 

 

Revenue in € million

 

2,684

 

2,363

 

13.5

%

9.7

%

Operating income (EBIT) in € million

 

527

 

391

 

34.8

%

30.4

%

Operating income margin in %

 

19.6

%

16.5

%

 

 

 

 

Delivered EBIT in € million

 

467

 

339

 

38.0

%

33.6

%

 

Key metrics Care Coordination

 

 

 

Three months ended March 31

 

unaudited

 

2017

 

2016

 

Change

 

Change
at cc

 

North America

 

 

 

 

 

 

 

 

 

Member months under medical cost management1)

 

155,622

 

93,375

 

67

%

 

 

Medical cost under management (in € million)1)

 

1,064

 

599

 

78

%

72

%

Care Coordination patient encounters1)

 

1,608,179

 

1,307,076

 

23

%

 

 

 


1) The 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 BPCI and ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.

 

Key metrics Dialysis Care Services

 

 

 

Three months ended March 31, 2017

 

unaudited

 

Clinics

 

Growth
in %

 

De
novos

 

Patients

 

Growth in %

 

Treatments

 

Total

 

3,654

 

6

%

19

 

310,473

 

6

%

11,744,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,323

 

4

%

11

 

190,480

 

4

%

7,246,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

722

 

10

%

4

 

60,168

 

9

%

2,271,334

 

Asia-Pacific

 

377

 

17

%

3

 

29,639

 

11

%

1,042,046

 

Latin America

 

232

 

2

%

1

 

30,186

 

3

%

1,184,830

 

 

7



 

Quality data

 

 

 

North America

 

EMEA

 

Latin America

 

Asia-Pacific

 

in % of patients

 

Q1 2017

 

Q4 2016

 

Q1 2017

 

Q4 2016

 

Q1 2017

 

Q4 2016

 

Q1 2017

 

Q4 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinical Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Pool Kt/v > 1.2

 

98

 

98

 

95

 

96

 

92

 

91

 

96

 

97

 

No catheter (> 90 days)

 

84

 

84

 

81

 

81

 

81

 

82

 

89

 

91

 

Hemoglobin = 10-12 g/dl

 

73

 

73

 

80

 

78

 

51

 

52

 

59

 

60

 

Hemoglobin = 10-13 g/dl

 

79

 

79

 

78

 

77

 

67

 

68

 

68

 

68

 

Albumin > 3.5 g/dl1)

 

78

 

78

 

87

 

86

 

90

 

91

 

87

 

89

 

Phosphate < 5.5 mg/dl

 

63

 

64

 

77

 

77

 

74

 

77

 

67

 

72

 

Calcium = 8.4-10.2 mg/dl

 

84

 

84

 

74

 

76

 

75

 

79

 

75

 

75

 

Hospitalization days

 

10.0

 

10.0

 

7.7

 

8.0

 

3.9

 

3.8

 

4.0

 

4.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demographics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average age (in years)

 

63

 

63

 

64

 

64

 

59

 

59

 

62

 

65

 

Average time on dialysis (in years)

 

4.0

 

4.0

 

5.6

 

5.5

 

5.3

 

5.2

 

4.8

 

5.1

 

Average body weight (in kg)

 

83

 

83

 

73

 

73

 

68

 

68

 

61

 

61

 

Prevalence of diabetes (in%)

 

62

 

62

 

32

 

32

 

27

 

22

 

40

 

42

 

 


1) International standard BCR CRM470

 

8



 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures

 

 

 

Three months ended
March 31

 

in € million, unaudited

 

2017

 

2016

 

Delivered EBIT reconciliation

 

 

 

 

 

Total

 

 

 

 

 

Operating income (EBIT)

 

651

 

497

 

less noncontrolling interests

 

(69

)

(62

)

Delivered EBIT

 

582

 

435

 

 

 

 

 

 

 

North America

 

 

 

 

 

Operating income (EBIT)

 

526

 

402

 

less noncontrolling interests

 

(67

)

(60

)

Delivered EBIT

 

459

 

342

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

Operating income (EBIT)

 

(1

)

11

 

less noncontrolling interests

 

(7

)

(8

)

Delivered EBIT

 

(8

)

3

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

Operating income (EBIT)

 

527

 

391

 

less noncontrolling interests

 

(60

)

(52

)

Delivered EBIT

 

467

 

339

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

Operating income (EBIT)

 

114

 

118

 

less noncontrolling interests

 

(0

)

(1

)

Delivered EBIT

 

114

 

117

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

Operating income (EBIT)

 

82

 

59

 

less noncontrolling interests

 

(2

)

(1

)

Delivered EBIT

 

80

 

58

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

Operating income (EBIT)

 

14

 

10

 

less noncontrolling interests

 

 

 

Delivered EBIT

 

14

 

10

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

Operating income (EBIT)

 

(85

)

(92

)

less noncontrolling interests

 

 

 

Delivered EBIT

 

(85

)

(92

)

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA1)

 

 

 

 

 

Total EBITDA

 

841

 

662

 

Interest expense, net

 

(92

)

(96

)

Income tax expense

 

(182

)

(126

)

Change in working capital and other non-cash items

 

(397

)

(277

)

Net cash provided by operating activities

 

170

 

163

 

 

 

 

 

 

 

Annualized EBITDA2)

 

 

 

 

 

Operating income (EBIT)

 

2,558

 

2,173

 

Depreciation and amortization

 

733

 

656

 

Non-cash charges

 

74

 

51

 

Annualized EBITDA

 

3,365

 

2,880

 

 


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

2) EBITDA 2017 : including largest acquisitions.

 

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Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures

 

 

 

Three months ended
March 31

 

in € million, unaudited

 

2017

 

2016

 

 

 

 

 

 

 

Operating performance excluding VA Agreement1

 

 

 

 

 

Revenue

 

 

 

 

 

Total

 

 

 

 

 

Revenue

 

4,548

 

3,916

 

VA Agreement

 

(100

)

 

 

Revenue excluding VA Agreement

 

4,448

 

3,916

 

 

 

 

 

 

 

Health Care Sevices revenue

 

3,769

 

3,199

 

VA Agreement

 

(100

)

 

 

Health Care Services revenue excluding VA Agreement

 

3,669

 

3,199

 

 

 

 

 

 

 

North America

 

 

 

 

 

Revenue

 

3,375

 

2,862

 

VA Agreement

 

(100

)

 

 

Revenue excluding VA Agreement

 

3,275

 

2,862

 

 

 

 

 

 

 

Health Care Sevices revenue

 

3,165

 

2,671

 

VA Agreement

 

(100

)

 

 

Health Care Services revenue excluding VA Agreement

 

3,065

 

2,671

 

 

 

 

 

 

 

Dialysis Care Services revenue

 

2,474

 

2,172

 

VA Agreement

 

(100

)

 

 

Dialysis Care Services revenue excluding VA Agreement

 

2,374

 

2,172

 

 

 

 

 

 

 

Operating income (EBIT)

 

 

 

 

 

Total

 

 

 

 

 

Operating income (EBIT)

 

651

 

497

 

VA Agreement

 

(99

)

 

 

Operating income (EBIT) excluding VA Agreement

 

552

 

497

 

 

 

 

 

 

 

North America

 

 

 

 

 

Operating income (EBIT)

 

526

 

402

 

VA Agreement

 

(99

)

 

 

Operating income (EBIT) excluding VA Agreement

 

427

 

402

 

 

 

 

 

 

 

Net income2

 

308

 

213

 

VA Agreement

 

(59

)

 

 

Net income excluding VA Agreement2

 

249

 

213

 

 


1 Agreement with the United States Departments of Veterans Affairs and Justice

2 attributable to shareholders of FMC AG & Co. KGaA

 

10



 

Remarks

 

cc = Constant Currency. Changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We use the non-IFRS financial measure at Constant Exchange Rates or Constant Currency to show changes in our revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the Constant Currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. This resulting percentage is a non-IFRS measure referring to a change as a percentage at Constant Currency.

 

We believe that the non-IFRS 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, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items 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, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA or other items 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 into euro. We do not evaluate our results and performance without considering both Constant Currency period-over-period changes in non-IFRS revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items and changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items prepared in accordance with IFRS. 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, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items prepared in accordance with IFRS. We present the growth rate derived from IFRS measures next to the growth rate derived from non-IFRS measures such as revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items. As the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

 

11