0001104659-18-012508.txt : 20180227 0001104659-18-012508.hdr.sgml : 20180227 20180227090258 ACCESSION NUMBER: 0001104659-18-012508 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20180227 FILED AS OF DATE: 20180227 DATE AS OF CHANGE: 20180227 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: 18643118 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 a18-2235_56k.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 February 2018

 

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 February 26, 2018 Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its fourth quarter and fiscal year 2017 results. A copy of the Press Release is furnished as Exhibit 99.1 and the corresponding financial figures as Exhibit 99.2.

 

The attached Press Release 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 fourth quarter and fiscal year 2017 results consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) delivered operating income (earnings before interest and taxes), (c) free cash flow, and (d) results presented in constant currency. 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-IFRS 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 IFRS financial measures are included in the attached Press Release in a separate statement setting forth the reconciliation and in the Cash Flow Statement.

 

The Exhibits 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 they 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: February 27, 2018

 

 

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 a18-2235_5ex99d1.htm AD-HOC ANNOUNCEMENT

Exhibit 99.1

 

 

Ad-hoc announcement according to Art. 17 (1) MAR

Media Contact

 

Matthias Link

T +49 6172 609-2872

 

matthias.link@fresenius.com

 

 

 

Contact for analysts and investors

 

Dr. Dominik Heger

 

T +49 6172 609-2601

 

dominik.heger@fmc-ag.com

 

 

 

www.freseniusmedicalcare.com

 

February 26, 2018

 

Fresenius Medical Care establishes provision of EUR 200 million regarding ongoing FCPA settlement negotiations

 

Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to establish a provision in the total amount of EUR 200m in its 2017 annual financial statements with respect to its ongoing settlement negotiations with the U.S. government regarding conduct that may have violated provisions of the U.S. Foreign Corrupt Practices Act (FCPA).

 

This provision takes into account recent developments in the ongoing settlement negotiations with the U.S. Department of Justice and the U.S. Securities Exchange Commission. The provision represents an estimate from a range of potential outcomes. The charge encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses and other related costs or asset impairments. In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.

 

The settlement negotiations are continuing and have not yet achieved an agreement-in-principle; failure to reach agreement remains possible.

 

Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of

 



 

dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

For more information visit the Company’s website at www.freseniusmedicalcare.com.

 


EX-99.2 3 a18-2235_5ex99d2.htm RECORD RESULTS IN 2017 AND TARGETS STRONG NET INCOME GROWTH IN 2018

Exhibit 99.2

 

 

Press Release

Media Contact

 

Matthias Link

T +49 6172 609-2872

 

matthias.link@fresenius.com

 

 

 

Contact for analysts and investors

 

Dr. Dominik Heger

 

T +49 6172 609-2601

 

dominik.heger@fmc-ag.com

 

 

 

www.freseniusmedicalcare.com

 

February 26, 2018

 

Fresenius Medical Care achieves record results in 2017 and targets strong net income growth in 2018

 

·                  Targets 2017 achieved

·                  Strong revenue growth of 9% at constant currency

·                  Net income growth of 14% at constant currency

·                  Record dividend of EUR 1.06 for fiscal year 2017 proposed

·                  Strong net income growth for 2018 targeted

 

Key figures (IFRS) — fourth quarter and full year 2017

 

EUR million

 

Q4
2017

 

Growth
yoy

 

Growth
yoy at cc

 

FY
2017

 

Growth
yoy

 

Growth
yoy at cc

 

Revenue

 

4,429

 

0

%

+8

%

17,784

 

+7

%

+9

%

Adjusted revenue

 

4,430

 

0

%

+8

%

17,690

 

+7

%

+9

%

Operating income (EBIT)

 

519

 

(29

)%

(22

)%

2,362

 

(2

)%

0

%

Adjusted operating income

 

726

 

0

%

+6

%

2,493

 

+4

%

+5

%

Net income1

 

394

 

+8

%

+16

%

1,280

 

+12

%

+14

%

Adjusted net income1

 

362

 

0

%

+6

%

1,204

 

+5

%

+7

%

 

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

 


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

cc = at constant currency

 



 

“In 2017 we continued the success story of Fresenius Medical Care with another set of record results. We managed an unusual number of severe natural disasters, have delivered on our financial targets, and again we are able to propose the highest dividend in our Company’s history,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “With the acquisition of the Cura Group in Australia and our planned acquisition of NxStage we are setting the course for future periods beyond our published 2020 outlook. We will continue improving our cost base with the implementation of the second phase of our Global Efficiency Program, GEP II. In 2018, we intend to continue the profitable growth track and further optimize our portfolio in the core dialysis as well as in the Care Coordination business.”

 

High net income growth for 2018 targeted

 

For 2018, Fresenius Medical Care expects revenue growth of around 8% at constant currency. The 2018 targets are based on 2017 revenue adjusted for the effect of the IFRS 15 implementation. Net income is expected to increase by 13 to 15% at constant currency including recurring benefits from the U.S. tax reform of EUR 140 to 160 million. The targets do not include effects from the NxStage acquisition. Fresenius Medical Care reconfirms the mid-term outlook for 2020, excluding the effect from IFRS 15 implementation and the recurring benefits from the U.S. tax reform in the years 2018 to 2020.

 

EUR million

 

Targets 20182

 

2017 base

 

 

 

 

 

 

 

Revenue growth3

 

~8

%

17,298

 

Net income growth4

 

13 to 15

%

1,280

 

 

21st consecutive dividend increase proposed

 

Based on the strong results for full year 2017, a dividend of EUR 1.06 per share, representing a dividend increase of 10%, will be proposed to the Annual General Meeting in May.

 

Strong underlying revenue and net income growth in 2017

 

Revenue in the fourth quarter 2017 — strongly impacted by headwinds from foreign exchange rates — came in at the level of the previous year’s quarter with EUR 4,429

 


2  Numbers at constant currency

3  Reported revenue 2017 of EUR 17,784 million adjusted for effect from IFRS 15 implementation of EUR 486 million

4  Targets 2018: including recurring benefits from U.S. tax reform of EUR 140 to 160 million

 



 

million. At constant currency, revenue increased by 8% (+8% excluding the VA Agreement). Health Care Services revenue reached EUR 3,581 million and Health Care Products revenue came in at EUR 848 million. Both increased by 8% at constant currency.

 

Revenue for full year 2017 increased by 9% at constant currency to EUR 17,784 million (+9% excluding the VA Agreement). Health Care Services revenue increased by 10% at constant currency to EUR 14,532 million, mainly due to strong underlying organic growth and contributions from acquisitions. Health Care Products revenue increased by 7% at constant currency to EUR 3,252 million. This growth was primarily driven by higher sales of dialyzers, non-dialysis products in the acute business, machines and peritoneal dialysis products.

 

Corporate cost in the fourth quarter 2017 amounted to EUR 289 million. The strong increase compared to the fourth quarter 2016 (EUR 82 million) is mainly driven by the recognition of a charge of EUR 200 million based on ongoing discussions toward a settlement with the U.S. Securities and Exchange Commission and the U.S. Department of Justice that would avoid litigation over government demands under the Foreign Corrupt Practices Act related to certain identified conduct, including certain legal expenses and other related costs or asset impairments (“FCPA related charge”). In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.

 

Operating income (EBIT) in the fourth quarter 2017 reached EUR 519 million. Adjusted EBIT increased by 6% at constant currency and reached EUR 726 million. For full year 2017, EBIT was EUR 2,362 million. On an adjusted basis EBIT increased by 5% at constant currency to EUR 2,493 million, mainly due to the strong business performance in North America and in Asia-Pacific.

 

Net interest expense in the fourth quarter 2017 was EUR 80 million, compared to EUR 90 million in the fourth quarter 2016. For full year 2017 net interest expense was EUR 354 million, a decrease of 3% year over year. The decrease was positively influenced by the replacement of interest bearing bonds, repaid in 2016 and 2017 by debt instruments at lower interest rates.

 



 

Income tax expense in the fourth quarter 2017 benefited from a book gain from the U.S. tax reform of EUR 236 million. Mainly for this reason, full year 2017 income tax expense decreased by 27% to EUR 454 million.

 

This decrease mainly resulted from the U.S. tax reform. Excluding (i) the impact from the VA Agreement, (ii) the effects associated with natural disaster costs, (iii) the FCPA related charge of EUR 200 million which was not tax effected and (iv) the U.S. tax reform, the 2017 effective tax rate increased to 31.0%, an increase of 50 basis points compared to the same period of 2016.

 

Net income1 for the fourth quarter of 2017 increased by 16% at constant currency to EUR 394 million. Adjusted for the impact from (i) the unfavorable effects of the VA Agreement (EUR 1 million), (ii) natural disaster costs in North America (EUR 3 million), (iii) FCPA related charge (EUR 200 million), as well as (iv) the benefit from the U.S. tax reform (EUR 236 million), net income was EUR 362 million (0%, +6% at constant currency). Based on approximately 306.9 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) improved by 8%, to EUR 1.28. Adjusted for the effects described before, EPS was EUR 1.18 (0%, +6% at constant currency).

 

For 2017 net income1 increased by 14% at constant currency to EUR 1,280 million. Excluding the four effects described in the previous paragraph ((i) EUR +51 million, (ii) EUR -11 million, (iii) EUR -200 million, and (iv) EUR +236 million), net income increased to EUR 1,204 million (+5%, +7% at constant currency). Based on approximately 306.6 million shares, basic EPS increased from EUR 3.74 to EUR 4.17 (+12%). Excluding the effects described above, EPS increased to EUR 3.93 (+5%, +7% at constant currency).

 

North America with strong growth supported by Care Coordination

 

In the fourth quarter 2017, the North America segment generated revenue of EUR 3,164 million (+8% at constant currency), strongly influenced by currency headwinds. Health Care Services revenue came in at EUR 2,950 million (+8% at constant currency), of which Care Coordination contributed EUR 715 million (+24% at constant currency) driven by significant organic revenue growth of 19%. Dialysis Care revenue reached EUR 2,235 million (+3% at constant currency). With $352, revenue per treatment in the United States was slightly down (-1%) due to lower revenue with commercial payors.

 


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

 



 

Cost per treatment increased by 3% to $276, largely driven by higher bad debt expenses, higher personnel expense and various other costs. The strong growth of the Health Care Products revenue (EUR 214 million, +9% at constant currency) was mainly driven by higher sales of machines, renal drugs and peritoneal dialysis products.

 

Operating income in North America in the fourth quarter reached EUR 608 million (+11% at constant currency). The operating income margin of 19.2% came in above last year’s strong fourth quarter margin of 18.4%. The improvement was triggered by an extraordinarily high contribution from Care Coordination which achieved an EBIT margin of 12.5%. The improvement was mainly driven by higher revenue including an acceleration of earnings from the Bundled Payment for Care Improvements (BPCI) initiative for previous reporting periods combined with increased volumes for hospital-related physician services, lower bad debt expense and the gain from the sale of Shiel Medical Laboratory. The Dialysis EBIT in North America reached EUR 519 million (-6% at constant currency), impacted by higher bad debt and personnel expenses, lower revenue with commercial payors, higher costs such as rent and insurance, the impact from natural disasters and higher costs for health care supplies.

 

For full year 2017, North America revenue increased by 9% at constant currency to EUR 12,879 million. Health Care Services revenue grew by 10% at constant currency to EUR 12,036 million, driven by higher Dialysis Care revenue (+5% at constant currency to EUR 9,227 million) and increased Care Coordination revenue (+28% at constant currency to EUR 2,809 million). Operating income increased in line with revenue growth to EUR 2,086 million (+10% at constant currency). As of the end of 2017, we had 197,356 patients being treated at the 2,393 clinics in North America. Dialysis treatments increased by 3%.

 

Solid Health Care Products and Health Care Services growth in EMEA

 

Revenue in the EMEA segment increased by 6% at constant currency to EUR 660 million in the fourth quarter 2017. Health Care Services revenue increased by 4% at constant currency to EUR 312 million. This was mainly the result of growth in same market treatments and contributions from acquisitions. Health Care Products revenue in EMEA increased by 7% at constant currency and reached EUR 348 million. The growth in Dialysis Products revenue was driven by higher sales of products for acute care, products for peritoneal dialysis and machines, partially offset by lower sales of dialyzers. Non-dialysis products increased due to higher sales of acute cardiopulmonary products. Operating income in the EMEA segment decreased by 7% at constant currency to EUR

 



 

110 million in the fourth quarter 2017. The operating income margin decreased year-over-year to 16.7% (Q4 2016: 19.0%) mainly due to further investments in Xenios and unfavorable foreign currency transaction effects.

 

For full year 2017, EMEA revenue increased by 6% at constant exchange rates to EUR 2,547 million and operating income decreased to EUR 444 million (-6% at constant currency). As of the end of 2017, we had 62,490 patients being treated at 746 clinics in EMEA. Dialysis treatments increased by 5%.

 

Growth in Asia-Pacific fuelled by acquisitions

 

Asia-Pacific revenue grew strongly by 12% at constant currency to EUR 418 million in the fourth quarter 2017. With EUR 191 million in Health Care Services revenue the region recorded growth of 17% at constant currency, mainly driven by the acquisition impact from Cura Group in Australia. The 7% constant currency growth in Health Care Products revenue to EUR 227 million was mainly supported by higher sales of dialyzers, bloodlines and products for peritoneal dialysis. Operating income reached EUR 76 million (-8% at constant currency). The operating income margin was 18.2% (Q4 2016: 21.8%). This was primarily driven by cost related to the build-up of dialysis services and peritoneal dialysis product business in China, the impact from foreign currency transaction effects and unfavorable mix effects related to acquisitions with lower margins.

 

For full year 2017, Asia-Pacific revenue grew by 13% at constant currency to EUR 1,623 million and operating income increased by 10% at constant currency to EUR 313 million. Operating income margin was stable on a high level of 19.3% (FY 2016: 19.6%). As of the end of 2017, we had 29,739 patients being treated at 381 clinics in Asia-Pacific. Dialysis treatments increased by 6%.

 

Improved contribution from Latin America

 

Latin America delivered revenue of EUR 185 million in the fourth quarter 2017, an increase of 16% at constant currency. Health Care Services revenue increased by 16% at constant currency to EUR 128 million and was driven by higher organic revenue per treatment. Health Care Products revenue increased by 15% at constant currency to EUR 57 million, mainly due to higher sales of machines, dialyzers and concentrates. Operating income came in at EUR 14 million (-12% at constant currency). The operating margin was 7.4% (Q4 2016: 9.7%), impacted by unfavorable foreign currency transaction effects, higher manufacturing costs primarily related to inflation, higher overhead costs

 



 

and only partially offset by reimbursement rate increases that mitigate inflationary cost increases.

 

For full year 2017, Latin America revenue grew by 15% at constant currency to EUR 720 million and operating income increased by 3% at constant currency to EUR 58 million. Operating income margin was at 8.1% (FY 2016: 9.2%). As of the end of 2017, we had 31,375 patients being treated at 232 clinics in Latin America. Dialysis treatments increased by 2%.

 

Solid operating cash flow

 

In the fourth quarter 2017, the company generated net cash provided by operating activities of EUR 528 million, representing 11.9% of revenue (Q4 2016: EUR 772 million). The decrease was primarily attributable to a less favorable DSO (days sales outstanding) effect this year and higher income tax payments.

 

In full year 2017, the company generated net cash provided by operating activities of EUR 2,192 million, compared to EUR 1,932 million for full year 2016. This represents 12.3% of revenue, clearly reaching our 2017 target of more than 10%. The increase in net cash provided by operating activities was largely driven by the payment from the U.S. Departments of Veterans Affairs and Justice for reimbursement, the impact of the 2016 discretionary contribution of EUR 90 million to pension plan assets in the U.S. and the impact of other working capital items, partially offset by higher income tax payments. Free cash flow was also very strong at EUR 1,351 million, compared to EUR 1,017 million for full year 2016. DSO as of December 31, 2017 was 67 days, a decrease of 3 days compared to the previous year.

 

Global Efficiency Program phase II

 

Fresenius Medical Care has launched the second phase of its Global Efficiency Program (GEP II) in 2018. The program’s objectives are to identify and realize further efficiency potential and enhance the overall competitiveness of Fresenius Medical Care. Starting in 2018, GEP II targets to achieve sustained cost improvements of EUR 100 to 200 million per annum by 2020.

 

NxStage acquisition to foster home penetration

 

In August 2017, Fresenius Medical Care signed a merger agreement to acquire NxStage Medical, Inc., a U.S.-based medical technology and services company. The planned acquisition has a total transaction volume of approximately EUR 1.7 billion (USD 2.0

 



 

billion). On October 27, shareholders of NxStage approved the acquisition by Fresenius Medical Care. The completion of the acquisition is subject to regulatory approvals and other customary closing conditions. Closing is expected to occur in 2018.

 

Press Conference

 

Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year 2017 on Tuesday, February 27, 2018, at 10 am CET. The press conference will be webcasted at the company’s website www.freseniusmedicalcare.com in the Media center. A replay will be available shortly after the conference.

 

Conference call

 

Fresenius Medical Care will hold a conference call to discuss the results of the fourth quarter and full year 2017 on Tuesday, February 27, at 3:30 p.m. CET / 9:30 a.m. EDT. The company invites investors to follow the live webcast of the call on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

 

Please refer to our statement of earnings included at the end of this news and to the attachments as separate excel- and PDF-files for a complete overview of the results for the fourth quarter and full year 2017.

 

Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 320,960 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

For more information visit the Company’s website at www.freseniusmedicalcare.com.

 

Disclaimers

 

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.

 

Fresenius Medical Care - Statement of earnings

in Euro million, except share data, audited

 

 

 

Three months ended
December 31,

 

 

 

Change
at constant

 

 

 

2017

 

2016

 

Change

 

currency

 

 

 

 

 

 

 

 

 

 

 

Health Care Services

 

3,581

 

3,596

 

-0.4

%

8.0

%

Health Care Products

 

848

 

821

 

3.2

%

8.1

%

Revenue

 

4,429

 

4,417

 

0.3

%

8.1

%

Adjusted revenue

 

4,430

 

4,417

 

0.3

%

8.0

%

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

2,936

 

2,864

 

2.5

%

10.7

%

Gross profit

 

1,493

 

1,553

 

-3.9

%

3.1

%

Selling, general and administrative

 

954

 

788

 

21.0

%

28.5

%

Research and development

 

36

 

39

 

-8.1

%

-5.3

%

Income from equity method investees

 

(16

)

(4

)

310.1

%

315.6

%

Operating income (EBIT)

 

519

 

730

 

-28.9

%

-22.2

%

Adjusted operating income (adjusted EBIT)

 

726

 

730

 

-0.5

%

5.9

%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

80

 

90

 

-11.6

%

-5.1

%

Income before taxes

 

439

 

640

 

-31.3

%

-24.7

%

Income tax expense

 

(30

)

196

 

n.a.

 

n.a.

 

Net income

 

469

 

444

 

5.6

%

13.2

%

Less: Net income attributable to noncontrolling interests

 

75

 

81

 

-7.5

%

-0.2

%

Net income1

 

394

 

363

 

8.5

%

16.3

%

Adjusted net income1

 

362

 

363

 

-0.1

%

6.1

%

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

730

 

-28.9

%

-22.2

%

Depreciation and amortization

 

182

 

188

 

-3.4

%

2.9

%

EBITDA

 

701

 

918

 

-23.6

%

-17.1

%

EBITDA margin

 

15.8

%

20.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

306,908,491

 

306,181,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

1.28

 

1.19

 

8.2

%

15.9

%

Basic earnings per ADS

 

0.64

 

0.60

 

8.2

%

15.9

%

In percent of revenue

 

 

 

 

 

 

 

 

 

Costs of revenue

 

66.3

%

64.8

%

 

 

 

 

Gross profit

 

33.7

%

35.2

%

 

 

 

 

Operating income (EBIT)

 

11.7

%

16.5

%

 

 

 

 

Net income1

 

8.9

%

8.2

%

 

 

 

 

 


1 Attributable to shareholders of FMC AG & Co. KGaA

 

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

 



 

Fresenius Medical Care - Statement of earnings

in Euro million, except share data, audited

 

 

 

Twelve months ended
December 31,

 

 

 

Change
at constant

 

 

 

2017

 

2016

 

Change

 

currency

 

Health Care Services

 

14,532

 

13,506

 

7.6

%

9.8

%

Health Care Products

 

3,252

 

3,064

 

6.1

%

7.4

%

Revenue

 

17,784

 

16,570

 

7.3

%

9.3

%

Adjusted revenue

 

17,690

 

16,570

 

6.8

%

8.7

%

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

11,780

 

10,954

 

7.5

%

9.6

%

Gross profit

 

6,004

 

5,616

 

6.9

%

8.8

%

Selling, general and administrative

 

3,578

 

3,119

 

14.7

%

16.5

%

Research and development

 

131

 

147

 

-10.8

%

-10.1

%

Income from equity method investees

 

(67

)

(59

)

14.6

%

14.9

%

Operating income (EBIT)

 

2,362

 

2,409

 

-1.9

%

0.1

%

Adjusted operating income (adjusted EBIT)

 

2,493

 

2,409

 

3.5

%

5.5

%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

354

 

366

 

-3.4

%

-1.9

%

Income before taxes

 

2,008

 

2,043

 

-1.7

%

0.5

%

Income tax expense

 

454

 

623

 

-27.1

%

-25.7

%

Net income

 

1,554

 

1,420

 

9.5

%

11.9

%

Less: Net income attributable to noncontrolling interests

 

274

 

276

 

-0.5

%

1.5

%

Net income1

 

1,280

 

1,144

 

11.9

%

14.4

%

Adjusted net income1

 

1,204

 

1,144

 

5.3

%

7.3

%

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

2,362

 

2,409

 

-1.9

%

0.1

%

Depreciation and amortization

 

736

 

701

 

4.8

%

6.3

%

EBITDA

 

3,098

 

3,110

 

-0.4

%

1.5

%

EBITDA margin

 

17.4

%

18.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

306,563,400

 

305,748,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

4.17

 

3.74

 

11.6

%

14.1

%

Basic earnings per ADS

 

2.09

 

1.87

 

11.6

%

14.1

%

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

Costs of revenue

 

66.2

%

66.1

%

 

 

 

 

Gross profit

 

33.8

%

33.9

%

 

 

 

 

Operating income (EBIT)

 

13.3

%

14.5

%

 

 

 

 

Net income1

 

7.2

%

6.9

%

 

 

 

 

 


1 Attributable to shareholders of FMC AG & Co. KGaA

 

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

 



 

Reconciliation of non IFRS financial measures to the most directly comparable IFRS financial measures — adjustments for special items

 

The table below shows the reconciliation of: revenue excluding VA Agreement, operating performance excluding VA Agreement and adjusted for the cost effects, net of anticipated recoveries from Natural Disasters in North America and FCPA related charge and for net income also excluding 2017 book gain from the U.S. tax reform.

 

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

 

 

 

Three months ended
December 31

 

Twelve months ended
December 31

 

in € million, audited

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

4,429

 

4,417

 

17,784

 

16,570

 

VA Agreement1

 

1

 

 

 

(94

)

 

 

Adjusted revenue (Revenue excluding special items)

 

4,430

 

4,417

 

17,690

 

16,570

 

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

730

 

2,362

 

2,409

 

VA Agreement1

 

1

 

 

 

(87

)

 

 

Natural Disaster Costs2

 

6

 

 

 

18

 

 

 

FCPA related charge3

 

200

 

 

 

200

 

 

 

Adjusted operating income (adjusted EBIT) (Operating income (EBIT) excluding special items)

 

726

 

730

 

2,493

 

2,409

 

 

 

 

 

 

 

 

 

 

 

Net income4

 

394

 

363

 

1,280

 

1,144

 

VA Agreement1

 

1

 

 

 

(51

)

 

 

Natural Disaster Costs2

 

3

 

 

 

11

 

 

 

FCPA related charge3

 

200

 

 

 

200

 

 

 

U.S. Tax Reform5

 

(236

)

 

 

(236

)

 

 

Adjusted net income4

 

 

 

 

 

 

 

 

 

(Net income4 excluding special items)

 

362

 

363

 

1,204

 

1,144

 

 


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

2 Natural Disaster Costs = three hurricanes and an earthquake

3 FCPA related charge = charges related to ongoing FCPA investigations

4 Attributable to shareholders of FMC AG & Co. KGaA

5 U.S. Tax Reform: re-measurement of deferred tax balances as a result of U.S. tax reform

 


EX-99.3 4 a18-2235_5ex99d3.htm COMPLETE OVERVIEW OF THE RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2017

Exhibit 99.3

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE RESULTS FOR THE FOURTH QUARTER

AND FULL YEAR 2017

February 26, 2018

 

Investor Relations

phone: +49 6172 609 2525

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 IFRS

page 10

Basis for targets 2018

page 11

Remarks

page 12

 

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 December 31

 

Twelve months ended December 31

 

in € million, except share data, audited

 

2017

 

2016

 

Change

 

Change
at cc

 

2017

 

2016

 

Change

 

Change
at cc

 

Health Care Services

 

3,581

 

3,596

 

-0.4

%

8.0

%

14,532

 

13,506

 

7.6

%

9.8

%

Health Care Products

 

848

 

821

 

3.2

%

8.1

%

3,252

 

3,064

 

6.1

%

7.4

%

Total revenue

 

4,429

 

4,417

 

0.3

%

8.1

%

17,784

 

16,570

 

7.3

%

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

2,936

 

2,864

 

2.5

%

10.7

%

11,780

 

10,954

 

7.5

%

9.6

%

Gross profit

 

1,493

 

1,553

 

-3.9

%

3.1

%

6,004

 

5,616

 

6.9

%

8.8

%

Selling, general and administrative

 

954

 

788

 

21.0

%

28.5

%

3,578

 

3,119

 

14.7

%

16.5

%

Research and development

 

36

 

39

 

-8.1

%

-5.3

%

131

 

147

 

-10.8

%

-10.1

%

Income from equity method investees

 

(16

)

(4

)

310.1

%

315.6

%

(67

)

(59

)

14.6

%

14.9

%

Operating income (EBIT)

 

519

 

730

 

-28.9

%

-22.2

%

2,362

 

2,409

 

-1.9

%

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(8

)

(8

)

4.0

%

5.0

%

(43

)

(42

)

2.7

%

2.0

%

Interest expense

 

88

 

98

 

-10.4

%

-4.3

%

397

 

408

 

-2.8

%

-1.5

%

Interest expense, net

 

80

 

90

 

-11.6

%

-5.1

%

354

 

366

 

-3.4

%

-1.9

%

Income before taxes

 

439

 

640

 

-31.3

%

-24.7

%

2,008

 

2,043

 

-1.7

%

0.5

%

Income tax expense

 

(30

)

196

 

n.a.

 

n.a.

 

454

 

623

 

-27.1

%

-25.7

%

Net income

 

469

 

444

 

5.6

%

13.2

%

1,554

 

1,420

 

9.5

%

11.9

%

Less: Net income attributable to noncontrolling interests

 

75

 

81

 

-7.5

%

-0.2

%

274

 

276

 

-0.5

%

1.5

%

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

 

394

 

363

 

8.5

%

16.3

%

1,280

 

1,144

 

11.9

%

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

730

 

-28.9

%

-22.2

%

2,362

 

2,409

 

-1.9

%

0.1

%

Depreciation and amortization

 

182

 

188

 

-3.4

%

2.9

%

736

 

701

 

4.8

%

6.3

%

EBITDA

 

701

 

918

 

-23.6

%

-17.1

%

3,098

 

3,110

 

-0.4

%

1.5

%

EBITDA margin

 

15.8

%

20.8

%

 

 

 

 

17.4

%

18.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

306,908,491

 

306,181,415

 

 

 

 

 

306,563,400

 

305,748,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

1.28

 

1.19

 

8.2

%

15.9

%

4.17

 

3.74

 

11.6

%

14.1

%

Basic earnings per ADS

 

0.64

 

0.60

 

8.2

%

15.9

%

2.09

 

1.87

 

11.6

%

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

66.3

%

64.8

%

 

 

 

 

66.2

%

66.1

%

 

 

 

 

Gross profit

 

33.7

%

35.2

%

 

 

 

 

33.8

%

33.9

%

 

 

 

 

Operating income (EBIT)

 

11.7

%

16.5

%

 

 

 

 

13.3

%

14.5

%

 

 

 

 

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

 

8.9

%

8.2

%

 

 

 

 

7.2

%

6.9

%

 

 

 

 

 

2



 

Segment information

 

 

 

Three months ended December 31

 

Twelve months ended December 31

 

audited

 

2017

 

2016

 

Change

 

Change
at cc

 

2017

 

2016

 

Change

 

Change
at cc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

4,429

 

4,417

 

0.3

%

8.1

%

17,784

 

16,570

 

7.3

%

9.3

%

Operating income (EBIT) in € million

 

519

 

730

 

-28.9

%

-22.2

%

2,362

 

2,409

 

-1.9

%

0.1

%

Operating income margin in %

 

11.7

%

16.5

%

 

 

 

 

13.3

%

14.5

%

 

 

 

 

Delivered EBIT in € million

 

444

 

649

 

-31.5

%

-25.0

%

2,088

 

2,133

 

-2.1

%

-0.1

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

67

 

70

 

 

 

 

 

Employees (full-time equivalents)

 

 

 

 

 

 

 

 

 

114,000

 

109,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

3,164

 

3,202

 

-1.2

%

7.7

%

12,879

 

12,030

 

7.1

%

9.3

%

Operating income (EBIT) in € million

 

608

 

588

 

3.4

%

10.8

%

2,086

 

1,936

 

7.8

%

9.9

%

Operating income margin in %

 

19.2

%

18.4

%

 

 

 

 

16.2

%

16.1

%

 

 

 

 

Delivered EBIT in € million

 

536

 

510

 

5.1

%

12.5

%

1,823

 

1,669

 

9.2

%

11.3

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

52

 

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$1

 

352

 

356

 

-1.1

%

n.a.

 

353

 

351

 

0.4

%

n.a.

 

Cost per dialysis treatment in US$

 

276

 

269

 

2.8

%

n.a.

 

283

 

278

 

2.0

%

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

660

 

633

 

4.2

%

5.6

%

2,547

 

2,409

 

5.7

%

6.1

%

Operating income (EBIT) in € million

 

110

 

120

 

-8.3

%

-7.5

%

444

 

474

 

-6.5

%

-6.1

%

Operating income margin in %

 

16.7

%

19.0

%

 

 

 

 

17.4

%

19.7

%

 

 

 

 

Delivered EBIT in € million

 

109

 

119

 

-8.4

%

-7.6

%

440

 

471

 

-6.6

%

-6.3

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

103

 

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

418

 

400

 

4.3

%

11.7

%

1,623

 

1,474

 

10.1

%

12.6

%

Operating income (EBIT) in € million

 

76

 

87

 

-12.9

%

-7.9

%

313

 

289

 

8.2

%

10.2

%

Operating income margin in %

 

18.2

%

21.8

%

 

 

 

 

19.3

%

19.6

%

 

 

 

 

Delivered EBIT in € million

 

74

 

85

 

-13.2

%

-8.2

%

306

 

283

 

7.9

%

10.0

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

97

 

105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

185

 

177

 

4.1

%

15.6

%

720

 

643

 

11.9

%

14.8

%

Operating income (EBIT) in € million

 

14

 

17

 

-20.4

%

-11.9

%

58

 

59

 

-1.4

%

3.4

%

Operating income margin in %

 

7.4

%

9.7

%

 

 

 

 

8.1

%

9.2

%

 

 

 

 

Delivered EBIT in € million

 

14

 

17

 

-20.4

%

-11.9

%

58

 

59

 

-1.4

%

3.4

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

128

 

143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

2

 

5

 

4.2

%

4.7

%

15

 

14

 

13.4

%

13.5

%

Operating income (EBIT) in € million

 

(289

)

(82

)

248.1

%

250.2

%

(539

)

(349

)

53.9

%

54.5

%

Delivered EBIT in € million

 

(289

)

(82

)

247.6

%

249.7

%

(539

)

(349

)

53.8

%

54.3

%

 


1 Excl. the effects from the VA Agreement, incl. VA agreement revenue per dialysis treatment was $352 for the three months and $356 for the twelve months ended December 31, 2017.

 

3



 

Balance sheet

 

 

 

December 31

 

December 31

 

in € million, except net leverage ratio

 

2017

 

2016

 

 

 

(audited)

 

(audited)

 

Assets

 

 

 

 

 

Current assets

 

6,374

 

6,884

 

Goodwill and intangible assets

 

12,787

 

13,759

 

Other non-current assets

 

4,864

 

4,861

 

Total assets

 

24,025

 

25,504

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

Current liabilities

 

5,300

 

5,299

 

Non-current liabilities

 

7,897

 

9,154

 

Total equity

 

10,828

 

11,051

 

Total liabilities and equity

 

24,025

 

25,504

 

 

 

 

 

 

 

Equity/assets ratio

 

45

%

43

%

 

 

 

 

 

 

Debt

 

 

 

 

 

Short-term debt

 

760

 

572

 

Short-term debt from related parties

 

9

 

3

 

Current portion of long-term debt and capital lease obligations

 

884

 

724

 

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

 

5,795

 

6,833

 

Total debt

 

7,448

 

8,132

 

Cash and cash equivalents

 

978

 

709

 

Total net debt

 

6,470

 

7,423

 

 

 

 

 

 

 

Annualized EBITDA1

 

 

 

 

 

Operating income (EBIT)

 

2,372

 

2,398

 

Depreciation and amortization

 

731

 

710

 

Non-cash charges

 

51

 

65

 

Annualized EBITDA

 

3,154

 

3,173

 

 

 

 

 

 

 

Net leverage ratio

 

2.1

 

2.3

 

 


1 EBITDA: including largest acquisitions and divestitures.

 

4



 

Cash flow statement

 

 

 

Three months ended
December 31

 

Twelve months ended
December 31

 

in € million, audited

 

2017

 

2016

 

2017

 

2016

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

469

 

444

 

1,554

 

1,420

 

Depreciation / amortization

 

182

 

188

 

736

 

701

 

Change in working capital and other non-cash items

 

(123

)

140

 

(98

)

(189

)

Net cash provided by operating activities

 

528

 

772

 

2,192

 

1,932

 

In percent of revenue

 

11.9

%

17.5

%

12.3

%

11.7

%

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(312

)

(261

)

(944

)

(931

)

Proceeds from sale of property, plant and equipment

 

85

 

4

 

103

 

16

 

Capital expenditures, net

 

(227

)

(257

)

(841

)

(915

)

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

301

 

515

 

1,351

 

1,017

 

In percent of revenue

 

6.8

%

11.7

%

7.6

%

6.1

%

 

 

 

 

 

 

 

 

 

 

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

 

(138

)

(175

)

(566

)

(522

)

Proceeds from divestitures

 

385

 

17

 

415

 

191

 

Acquisitions and investments, net of divestitures

 

247

 

(158

)

(151

)

(331

)

Free cash flow after investing activities

 

548

 

357

 

1,200

 

686

 

 

5



 

Revenue development

 

in € million, audited

 

2017

 

2016

 

Change

 

Change
at cc

 

Organic
growth

 

Same market
treatment
growth
1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,429

 

4,417

 

0.3

%

8.1

%

5.6

%

 

 

Health Care Services

 

3,581

 

3,596

 

-0.4

%

8.0

%

5.2

%

2.7

%

Thereof Dialysis Care revenue

 

2,809

 

2,972

 

-5.5

%

2.5

%

1.2

%

2.7

%

Thereof Care Coordination revenue

 

772

 

624

 

23.6

%

34.2

%

24.9

%

 

 

Health Care Products

 

848

 

821

 

3.2

%

8.1

%

7.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,164

 

3,202

 

-1.2

%

7.7

%

5.3

%

 

 

Health Care Services

 

2,950

 

2,990

 

-1.3

%

7.5

%

5.0

%

2.5

%2

Thereof Dialysis Care revenue

 

2,235

 

2,366

 

-5.5

%

3.1

%

1.4

%

2.5

%2

Thereof Care Coordination revenue

 

715

 

624

 

14.5

%

24.4

%

19.1

%

 

 

Health Care Products

 

214

 

212

 

0.7

%

9.4

%

9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

660

 

633

 

4.2

%

5.6

%

3.8

%

 

 

Health Care Services

 

312

 

303

 

3.1

%

4.3

%

2.6

%

4.3

 

Health Care Products

 

348

 

330

 

5.2

%

6.7

%

4.9

%

 

 

Thereof Dialysis Products

 

328

 

317

 

3.4

%

5.0

%

5.5

%

 

 

Thereof Non-Dialysis Products

 

20

 

13

 

47.8

%

47.9

%

-9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

418

 

400

 

4.3

%

11.7

%

6.3

%

 

 

Health Care Services

 

191

 

177

 

7.9

%

17.5

%

5.3

%

2.3

%

Thereof Dialysis Care revenue

 

134

 

177

 

-24.5

%

-17.1

%

-15.4

%

2.3

%

Thereof Care Coordination revenue

 

57

 

 

n.a.

 

n.a.

 

 

 

 

 

Health Care Products

 

227

 

223

 

1.4

%

7.2

%

7.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

185

 

177

 

4.1

%

15.6

%

17.5

%

 

 

Health Care Services

 

128

 

126

 

2.1

%

15.8

%

18.6

%

3.3

%

Health Care Products

 

57

 

51

 

9.2

%

15.1

%

14.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

2

 

5

 

4.2

%

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

17,784

 

16,570

 

7.3

%

9.3

%

6.6

%

 

 

Health Care Services

 

14,532

 

13,506

 

7.6

%

9.8

%

6.6

%

2.7

%

Thereof Dialysis Care revenue

 

11,555

 

11,267

 

2.6

%

4.6

%

2.8

%

2.7

%

Thereof Care Coordination revenue

 

2,977

 

2,239

 

32.9

%

35.7

%

25.9

%

 

 

Health Care Products

 

3,252

 

3,064

 

6.1

%

7.4

%

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

12,879

 

12,030

 

7.1

%

9.3

%

6.6

%

 

 

Health Care Services

 

12,036

 

11,214

 

7.3

%

9.5

%

6.7

%

2.8

%2

Thereof Dialysis Care revenue

 

9,227

 

8,975

 

2.8

%

4.9

%

3.2

%

2.8

%2

Thereof Care Coordination revenue

 

2,809

 

2,239

 

25.4

%

28.0

%

21.2

%

 

 

Health Care Products

 

843

 

816

 

3.2

%

5.4

%

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

2,547

 

2,409

 

5.7

%

6.1

%

3.4

%

 

 

Health Care Services

 

1,237

 

1,169

 

5.8

%

5.6

%

2.4

%

3.5

%

Health Care Products

 

1,310

 

1,240

 

5.6

%

6.5

%

4.4

%

 

 

Thereof Dialysis Products

 

1,231

 

1,191

 

3.4

%

4.3

%

4.7

%

 

 

Thereof Non-Dialysis Products

 

79

 

49

 

59.4

%

59.4

%

-3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

1,623

 

1,474

 

10.1

%

12.6

%

7.7

%

 

 

Health Care Services

 

744

 

659

 

12.9

%

16.1

%

5.2

%

3.3

%

Thereof Dialysis Care revenue

 

576

 

659

 

-12.6

%

-10.2

%

-11.4

%

3.3

%

Thereof Care Coordination revenue

 

168

 

 

n.a.

 

n.a.

 

 

 

 

 

Health Care Products

 

879

 

815

 

7.9

%

9.7

%

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

720

 

643

 

11.9

%

14.8

%

15.0

%

 

 

Health Care Services

 

515

 

464

 

11.0

%

16.2

%

16.3

%

1.5

%

Health Care Products

 

205

 

179

 

14.1

%

11.3

%

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

15

 

14

 

13.4

%

13.5

%

 

 

 

 

 


1 same market treatment  growth = organic growth less price effects.

 

2 U.S. (excl. Mexico), same market treatment growth North America: 2.3% for the three months and 2.5% for the twelve months ended December 31, 2017, respectively.

 

6



 

Key metrics North America segment

 

 

 

Three months ended December 31

 

Twelve months ended December 31

 

audited

 

2017

 

2016

 

Change

 

Change
at cc

 

2017

 

2016

 

Change

 

Change
at cc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

2,449

 

2,578

 

-5.0

%

3.6

%

10,070

 

9,791

 

2.9

%

5.0

%

Operating income (EBIT) in € million

 

519

 

593

 

-12.5

%

-5.7

%

1,942

 

1,882

 

3.2

%

5.2

%

Operating income margin in %

 

21.2

%

23.0

%

 

 

 

 

19.3

%

19.2

%

 

 

 

 

Delivered EBIT in € million

 

457

 

518

 

-11.9

%

-5.1

%

1,713

 

1,639

 

4.5

%

6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

715

 

624

 

14.5

%

24.4

%

2,809

 

2,239

 

25.4

%

28.0

%

Operating income (EBIT) in € million

 

89

 

(5

)

-1,919.9

%

-1,982.2

%

144

 

54

 

167.5

%

173.0

%

Operating income margin in %

 

12.5

%

-0.8

%

 

 

 

 

5.1

%

2.4

%

 

 

 

 

Delivered EBIT in € million

 

79

 

(8

)

-1,046.4

%

-1,074.2

%

110

 

30

 

263.8

%

271.3

%

 

Key metrics Care Coordination

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31

 

audited

 

 

 

 

 

 

 

 

 

2017

 

2016

 

Change

 

Change
at cc

 

North America

 

 

 

 

 

 

 

 

 

Member months under medical cost management1

 

604,244

 

387,244

 

56.0

%

 

 

Medical cost under management (in € million)1

 

3,994

 

2,542

 

57.1

%

60.3

%

Care Coordination patient encounters1

 

6,934,300

 

5,539,703

 

25.2

%

 

 

 


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

 

 

 

Twelve months ended December 31, 2017

 

audited

 

Clinics

 

Growth
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

Total

 

3,752

 

4

%

109

 

320,960

 

4

%

48,269,144

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,393

 

4

%

60

 

197,356

 

4

%

29,804,196

 

3

%

EMEA

 

746

 

5

%

22

 

62,490

 

5

%

9,350,024

 

5

%

Asia-Pacific

 

381

 

2

%

26

 

29,739

 

1

%

4,249,878

 

6

%

Latin America

 

232

 

0

%

1

 

31,375

 

3

%

4,865,046

 

2

%

 

7



 

Quality data1

 

 

 

North America

 

EMEA

 

Latin America

 

Asia-Pacific

 

% of patients

 

Q4 2017

 

Q4 2016

 

Q4 2017

 

Q4 2016

 

Q4 2017

 

Q4 2016

 

Q4 2017

 

Q4 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kt/v > 1.2

 

98

 

98

 

95

 

96

 

93

 

91

 

96

 

97

 

Hemoglobin = 10-12 g/dl

 

73

 

73

 

79

 

78

 

52

 

52

 

58

 

60

 

Calcium = 8.4-10.2 mg/dl

 

85

 

84

 

76

 

76

 

77

 

79

 

75

 

75

 

Albumin > 3.5 g/dl

 

79

 

78

 

87

 

91

 

90

 

91

 

88

 

89

 

Phosphate < 5.5 mg/dl

 

63

 

64

 

79

 

77

 

76

 

77

 

70

 

72

 

Patients without catheter (after 90 days)

 

83

 

84

 

80

 

81

 

81

 

82

 

88

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in days:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Days in hospital per patient year

 

10.1

 

10.0

 

7.5

 

9.4

 

4.1

 

3.8

 

3.8

 

4.4

 

 


1 cf. Annual Report 2017, Section “Non-Financial Group Report”.

 

8



 

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

 

 

 

Three months ended
December 31

 

Twelve months ended
December 31

 

in € million, audited

 

2017

 

2016

 

2017

 

2016

 

Delivered EBIT reconciliation

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

730

 

2,362

 

2,409

 

less noncontrolling interests

 

(75

)

(81

)

(274

)

(276

)

Delivered EBIT

 

444

 

649

 

2,088

 

2,133

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

608

 

588

 

2,086

 

1,936

 

less noncontrolling interests

 

(72

)

(78

)

(263

)

(267

)

Delivered EBIT

 

536

 

510

 

1,823

 

1,669

 

 

 

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

593

 

1,942

 

1,882

 

less noncontrolling interests

 

(62

)

(75

)

(229

)

(243

)

Delivered EBIT

 

457

 

518

 

1,713

 

1,639

 

 

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

89

 

(5

)

144

 

54

 

less noncontrolling interests

 

(10

)

(3

)

(34

)

(24

)

Delivered EBIT

 

79

 

(8

)

110

 

30

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

110

 

120

 

444

 

474

 

less noncontrolling interests

 

(1

)

(1

)

(4

)

(3

)

Delivered EBIT

 

109

 

119

 

440

 

471

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

76

 

87

 

313

 

289

 

less noncontrolling interests

 

(2

)

(2

)

(7

)

(6

)

Delivered EBIT

 

74

 

85

 

306

 

283

 

 

 

 

 

 

 

 

 

 

 

Dialysis

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

65

 

87

 

286

 

289

 

less noncontrolling interests

 

(2

)

(2

)

(6

)

(6

)

Delivered EBIT

 

63

 

85

 

280

 

283

 

 

 

 

 

 

 

 

 

 

 

Care Coordination

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

11

 

 

27

 

 

less noncontrolling interests

 

0

 

 

(1

)

 

Delivered EBIT

 

11

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

14

 

17

 

58

 

59

 

less noncontrolling interests

 

0

 

0

 

0

 

0

 

Delivered EBIT

 

14

 

17

 

58

 

59

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

(289

)

(82

)

(539

)

(349

)

less noncontrolling interests

 

0

 

0

 

0

 

0

 

Delivered EBIT

 

(289

)

(82

)

(539

)

(349

)

 

 

 

 

 

 

Reconciliation of net cash provided by operating activities to EBITDA1

 

 

 

 

 

Total EBITDA

 

3,098

 

3,110

 

Interest expense, net

 

(354

)

(366

)

Income tax expense

 

(454

)

(623

)

Change in working capital and other non-cash items

 

(98

)

(189

)

Net cash provided by operating activities

 

2,192

 

1,932

 

 


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

 

9



 

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

 

 

 

Three months ended December 31

 

Twelve months ended December 31

 

in € million, audited

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Operating performance excluding special items

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Revenue

 

4,429

 

4,417

 

17,784

 

16,570

 

VA Agreement1

 

1

 

 

 

(94

)

 

 

Revenue excluding special items

 

4,430

 

4,417

 

17,690

 

16,570

 

 

 

 

 

 

 

 

 

 

 

Health Care Sevices revenue

 

3,581

 

3,596

 

14,532

 

13,506

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Health Care Services revenue excluding special items

 

3,582

 

3,596

 

14,438

 

13,506

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

Revenue

 

3,164

 

3,202

 

12,879

 

12,030

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Revenue excluding special items

 

3,165

 

3,202

 

12,785

 

12,030

 

 

 

 

 

 

 

 

 

 

 

Health Care Sevices revenue

 

2,950

 

2,990

 

12,036

 

11,214

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Health Care Services revenue excluding special items

 

2,951

 

2,990

 

11,942

 

11,214

 

 

 

 

 

 

 

 

 

 

 

Dialysis Care Services revenue

 

2,235

 

2,366

 

9,227

 

8,975

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Dialysis Care Services revenue excluding special items

 

2,236

 

2,366

 

9,133

 

8,975

 

 

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

519

 

730

 

2,362

 

2,409

 

VA Agreement

 

1

 

 

 

(87

)

 

 

Natural Disaster Costs2

 

6

 

 

 

18

 

 

 

FCPA related charge3

 

200

 

 

 

200

 

 

 

Operating income (EBIT) excluding special items

 

726

 

730

 

2,493

 

2,409

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

608

 

588

 

2,086

 

1,936

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Natural Disaster Costs

 

6

 

 

 

18

 

 

 

Operating income (EBIT) excluding special items

 

615

 

588

 

2,010

 

1,936

 

 

 

 

 

 

 

 

 

 

 

Dialysis operating income (EBIT)

 

519

 

593

 

1,942

 

1,882

 

VA Agreement

 

1

 

 

 

(94

)

 

 

Natural Disaster Costs

 

6

 

 

 

17

 

 

 

Dialysis operating income (EBIT) excluding special items

 

526

 

593

 

1,865

 

1,882

 

 

 

 

 

 

 

 

 

 

 

Care Coordination operating income (EBIT)

 

89

 

(5

)

144

 

54

 

Natural Disaster Costs

 

0

 

 

 

1

 

 

 

Care Coordination operating income (EBIT) excluding special items

 

89

 

(5

)

145

 

54

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

Operating income (EBIT)

 

(289

)

(82

)

(539

)

(349

)

VA Agreement

 

 

 

 

 

7

 

 

 

FCPA related charge

 

200

 

 

 

200

 

 

 

Operating income (EBIT) excluding special items

 

(89

)

(82

)

(332

)

(349

)

 

 

 

 

 

 

 

 

 

 

Net income4

 

394

 

363

 

1,280

 

1,144

 

VA Agreement

 

1

 

 

 

(51

)

 

 

Natural Disaster Costs

 

3

 

 

 

11

 

 

 

FCPA related charge

 

200

 

 

 

200

 

 

 

U.S. Tax Reform5

 

(236

)

 

 

(236

)

 

 

Net income excluding special items

 

362

 

363

 

1,204

 

1,144

 

 


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

Natural Disaster Costs = three hurricanes and an earthquake

3 FCPA related charge = charges related to ongoing FCPA investigations

4 Attributable to shareholders of FMC AG & Co. KGaA

5 U.S. Tax Reform: remeasurement of deferred tax balances as a result of U.S. tax reform              

10



 

Basis for Targets 2018

 

in € million, audited
Operating performance adjusted for the effect of IFRS 15 implementation

 

Twelve months ended
December 31
2017

 

 

 

 

 

 

 

Revenue

 

17,784

 

Effects from IFRS 15 implementation

 

(486

)

Revenue adjusted for the effect of IFRS 15 implementation (basis for target 2018)

 

17,298

 

 

 

 

 

Net income1 (basis for target 2018)

 

1,280

 

including special items:

 

76

 

VA Agreement2

 

51

 

Natural Disaster Costs3

 

(11

)

FCPA related charge4

 

(200

)

U.S. Tax Reform5

 

236

 

 


1 Attributable to shareholders of FMC AG & Co. KGaA

2 VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice

3 Natural Disaster Costs: three hurricanes and an earthquake

4 FCPA related charge = charges related to ongoing FCPA investigations

5 U.S. Tax Reform: remeasurement of deferred tax balances as a result of U.S. tax reform

 

11



 

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.

 

12


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