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