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 May 2018
FRESENIUS MEDICAL CARE AG & Co. KGaA
(Translation of registrants 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 May 3, 2018 Fresenius Medical Care AG & Co. KGaA (the Company) issued a Press Release announcing its first quarter results for the period ending March 31, 2018. 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 companys 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 first quarter 2018 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 users 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.
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: May 3, 2018
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FRESENIUS MEDICAL CARE AG & Co. KGaA, | |||
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a partnership limited by shares, represented by: | |||
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FRESENIUS MEDICAL CARE MANAGEMENT AG, its | |||
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General Partner | |||
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By: |
/s/ RICE POWELL | ||
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Name: |
Rice Powell | |
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Title: |
Chief Executive Officer and Chairman of the Management Board of the General Partner | |
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By: |
/s/ MICHAEL BROSNAN | ||
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Name: |
Michael Brosnan | |
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Title: |
Chief Financial Officer and Member of the Management Board of the General Partner | |
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Press Release |
Media Contact |
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Matthias Link |
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T +49 6172 609-2872 |
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matthias.link@fresenius.com |
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Contact for analysts and investors |
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Dr. Dominik Heger |
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T +49 6172 609-2601 |
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dominik.heger@fmc-ag.com |
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www.freseniusmedicalcare.com |
3 May 2018
Fresenius Medical Care remains on track for another record year after solid first quarter 2018
· Revenue and net income growth in the first quarter impacted by significant currency headwind
· Growth delivered by Products business and International segments
· On track to achieve net income growth target
· Expected revenue growth softened due to reduced dosing of calcimimetic drugs in the United States
· Divestiture of Sound Inpatient Physicians to further focus U.S. Care Coordination activities
Key figures (IFRS)(1)
EUR million |
|
Q1 2018 |
|
Q1 2017 |
|
growth |
|
growth cc |
|
Revenue |
|
3,976 |
|
4,548 |
|
(13 |
)% |
(1 |
)% |
Revenue adjusted |
|
3,976 |
|
4,409 |
|
(10 |
)% |
2 |
% |
Revenue adjusted and excluding special items |
|
3,976 |
|
4,309 |
|
(8 |
)% |
4 |
% |
Operating income (EBIT) |
|
497 |
|
651 |
|
(24 |
)% |
(15 |
)% |
Operating income (EBIT) adjusted |
|
510 |
|
651 |
|
(22 |
)% |
(13 |
)% |
Operating income (EBIT) adjusted and excl. special items |
|
510 |
|
552 |
|
(8 |
)% |
3 |
% |
Net income(2) |
|
279 |
|
308 |
|
(10 |
)% |
0 |
% |
Net income adjusted |
|
292 |
|
308 |
|
(5 |
)% |
5 |
% |
Net income adjusted and excluding special items |
|
244 |
|
249 |
|
(2 |
)% |
8 |
% |
Basic earnings per share (in EUR) |
|
0.91 |
|
1.01 |
|
(10 |
)% |
0 |
% |
(1) For a detailed reconciliation, please refer to the table at the end of the press release
(2) Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
On the back of a solid first quarter, which showed healthy organic growth in our businesses, we are heading towards another record year in our companys history. While managing the shift of the calcimimetic drugs into our clinical operations in the United States, we achieved good organic revenue growth in our Dialysis Services business and strong organic revenue growth in our Products business. This provides a solid basis to deliver on our growth targets for this year. With the planned sale of Sound Inpatient Physicians we have narrowed the focus of our Care Coordination strategy in the U.S. on areas that provide the highest contribution and the best outcomes for our patients, said Rice Powell, Chief Executive Officer of Fresenius Medical Care. I am proud to announce that we have just proven once again our commitment to patients. We have received the highest quality rankings in the industry from the U.S. Centers for Medicare and Medicaid Services last week.
Currency headwind impacts revenue and earnings, healthy organic growth continues
Revenue in the first quarter 2018 was significantly impacted by a 12% negative impact resulting from foreign currency translation, declining 1% at constant currency to EUR 3,976 million. Adjusting Q1 2017 for the prior year impact from the recognition of revenue related to the agreement with the U.S. Departments of Veterans Affairs and Justice (VA Agreement) and for the IFRS 15 implementation, revenue growth in the first quarter 2018 was 4% at constant currency. Health Care Services revenue declined by 3% at constant currency (EUR 3,209 million), driven by the effect of the implementation of IFRS 15. Health Care Products revenue increased by 6% at constant currency to EUR 767 million. Organic growth for Health Care Services was at 2%, and for the Health Care Products business at 6%. Dialysis treatments increased by 3% as a result of growth in same-market treatments (2%) and contributions from acquisitions (1%).
Total operating income (EBIT) reached EUR 497 million (margin of 12.5%, 180 basis points below the level of last year). This development was strongly impacted by the VA Agreement and the impact from the initial increase in valuation of Sound Physicians share based payment program caused by the sale of Sound Physician (initial Sound valuation impact). Adjusting for the revenue impact from the implementation of IFRS 15 and excluding the VA Agreement as well as the initial Sound valuation impact, EBIT grew by 3% at constant currency and EBIT margin was stable at 12.8%.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA remained strong with EUR 279 million, a stable development at constant currency. Adjusted for the negative impact of the initial Sound valuation impact net income grew by 5% on a constant currency basis (EUR 292 million). Excluding all special items
namely the VA Agreement in Q1 2017 and the positive effect from the U.S. Tax Reform in Q1 2018 as well as the initial Sound valuation impact, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% at constant currency.
Based on the number of approximately 306.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 0.91, compared to EUR 1.01 for the first quarter of 2017.
Development of Reporting Segments
North America revenue, which corresponds to 70% of total revenue, was down by 5% at constant currency to EUR 2,774 million.
Dialysis Care revenue decreased by 16% to EUR 2,075 million, including a 13% negative impact resulting from foreign currency translation. At constant currency, Dialysis Care revenue decreased by 3%, mainly due to the implementation of IFRS 15 (EUR 88 million) and the prior-year impact from the VA Agreement (EUR 100 million). Excluding the 2017 effect from the VA Agreement and the 2017 effect from the implementation of IFRS 15, Dialysis Care revenue increased by 5% at constant currency. Same-market treatments grew by 2%, organic revenue per treatment by 2% and acquisitions contributed 1%. At constant currency, Care Coordination revenue decreased by 14%, driven by the shift of calcimimetic drugs into the clinical environment, the implementation of IFRS 15 and the impact from the Shiel Laboratories divestiture in Q4 2017.
As of the end of March 2018, the company was treating 197,339 patients at its 2,419 clinics in North America. Both numbers increased by 4%, while dialysis treatments increased by 3%.
Key figures North America (IFRS)
EUR million |
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Q1 2018 |
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Q1 2017 |
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growth |
|
growth cc |
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Revenue |
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2,774 |
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3,375 |
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(18 |
)% |
(5 |
)% |
Revenue adjusted |
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2,774 |
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3,236 |
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(14 |
)% |
(1 |
)% |
Revenue adjusted and excluding special items |
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2,774 |
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3,136 |
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(12 |
)% |
2 |
% |
Operating income (EBIT) |
|
362 |
|
526 |
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(31 |
)% |
(21 |
)% |
Operating income (EBIT) adjusted |
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375 |
|
526 |
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(29 |
)% |
(19 |
)% |
Operating income (EBIT) adjusted and excl. special items |
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375 |
|
427 |
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(12 |
)% |
0 |
% |
In the U.S., the average revenue per treatment, adjusted for the implementation of IFRS 15 and excluding the 2017 impact of the VA Agreement, the average revenue per treatment increased by USD 6 from USD 342 to USD 348. The increase was mainly
driven by the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage. Higher implicit price concessions (IFRS 15) and, as previously indicated, lower revenue from commercial payors mitigated this effect.
Cost per treatment in the U.S., adjusted for the implementation of IFRS 15, increased to USD 288 (from USD 276). This development was largely a result of the announced initial introduction of calcimimetic drugs in the clinical environment, which is still in an early conversion stage, higher personnel expense, as well as increased property and other occupancy related costs and increased costs for medical supplies partially offset by lower costs for health care supplies.
At constant currency, Health Care Products revenue increased by 1% due to higher sales of renal pharmaceuticals, peritoneal dialysis products, hemodialysis solutions and concentrates, partially offset by lower sales of machines and dialyzers.
The total operating income of the North America segment was EUR 362 million (-31%), (-21% at constant currency), an operating income margin of 13.1%. Adjusted for the initial Sound valuation impact and the 2017 effects from the VA Agreement, operating income (EBIT) was EUR 375 million compared to EUR 427 million in the first quarter 2017. The respective operating income margin was 13.5% compared to 13.6% in the first quarter of 2017.
EMEA revenue increased by 6% at constant currency to EUR 636 million, mainly driven by positive business development in Health Care Services revenue and Health Care Products revenue, which both increased by 6% at constant currency. The increase in Health Care Services revenue was driven by acquisitions, same-market treatment growth and an increase in dialysis days. Dialysis Products revenue grew by 7% at constant currency to EUR 302 million, due to higher sales of products for acute care treatments, machines, peritoneal dialysis products and renal pharmaceuticals.
Non-dialysis Products revenue decreased by 6% to EUR 20 million, primarily due to lower sales of acute cardiopulmonary products. There was virtually no impact from foreign currency translation effects. Operating income was EUR 109 million. The operating income margin decreased from 18.7% to 17.1%, mainly due to unfavorable impacts from currency effects partially offset by the impact of one additional dialysis day.
As of the end of March 2018, the company had 63,114 patients (5% increase) being treated at 754 clinics (4% increase) in the EMEA region. Dialysis treatments increased by 5%.
Asia-Pacific revenue grew by 14% at constant currency to EUR 392 million. In the region, Health Care Services revenue increased 9% (20% at constant currency) to EUR 184 million. Care Coordination activities contributed EUR 46 million to Health Care
Services revenue. With growth of 8% in constant currency to EUR 208 million, the Health Care Products business showed a solid sales performance, mainly driven by higher sales of chronic hemodialysis products and products for acute care treatments. Operating income reached EUR 74 million (Q1 2017: EUR 82 million). The operating income margin decreased to 19.0% in Q1 2018 (Q1 2017: 21.7%). This was primarily driven by foreign currency transaction effects and delayed product sales.
As of the end of March 2018, the company had 30,194 patients (2% increase) being treated at 385 clinics in Asia-Pacific. Dialysis treatments increased by 2%, impacted by same market treatment growth of 4% partially offset by the effect of sold or closed clinics.
Latin America delivered revenue of EUR 170 million, a significant improvement of 17% at constant currency. This growth was mainly driven by an increase in organic revenue per treatment. Health Care Products revenue grew by 25% at constant currency based on higher sales of dialyzers, machines, products for acute treatments and peritoneal dialysis products. With an operating income of EUR 14 million the segment generated an operating income on previous years level. Operating income margin increased slightly to 8.3% in Q1 2018 (Q1 2017: 8.1%).
As of the end of March 2018, the company was treating 31,606 patients (5% increase) at 232 clinics in Latin America. Dialysis treatments increased by 4%.
Net interest expense was EUR 80 million compared to EUR 92 million in the first quarter of 2017, a decrease of 14% (5% at constant currency). The decrease was driven by the lower leverage level and a repayment of high interest-bearing senior notes. Income tax expense was EUR 87 million for the first quarter of 2018, which translates into an effective tax rate of 20.9%, compared to last years Q1 with a tax rate of 32.5%. The strong reduction was largely driven by the U.S. Tax Reform.
Cash flow with normalized development
In the first quarter of 2018, the company used EUR 45 million in net cash from operating activities, compared to EUR 170 million provided by operating activities in last years Q1. The decrease in net cash provided by operating activities was largely driven by the positive impact from the 2017 cash inflow related to the VA Agreement, a higher impact from seasonality in invoicing and increased inventory levels, partially offset by a positive impact from lower income tax payments. The number of days sales outstanding (DSOs) increased sequentially by 10 days compared with Q4 2017 to reach 85 days driven by the above mentioned seasonality in invoicing. Free cash flow (Net cash used in operating activities, after capital expenditures, before acquisitions and
investments) amounted to EUR (263 million) and EUR (25 million) for the three months ended March 31, 2018 and March 31, 2017, respectively. Free cash flow in percent of revenue was (6.6%) and (0.6%) for the three months ended 2018 and 2017, respectively.
Focusing the profile in U.S. Care Coordination portfolio
On April 21, Fresenius Medical Care announced to divest its controlling interest in Sound Inpatient Physicians to an investment consortium for total transaction proceeds of USD 2.15 billion (EUR 1.76 billion(3)). The divestment is expected to generate a pre-tax book gain of approximately EUR 800 million(3),(4). Closing of the transaction is subject to regulatory approvals and anticipated late in 2018.
Employees
As of March 31, 2018, Fresenius Medical Care had 114,831 employees (full-time equivalents) worldwide, compared to 110,530 employees at the end of March 2017. This increase was mainly attributable to our continued organic growth and acquisitions.
Outlook 2018
The company expects revenue(5) growth between 5% and 7% at constant currency. Adjusted net income(6) is expected to increase by 13% to 15% at constant currency and excluding special items(7) to increase by 7% to 9%.
The targets exclude effects from major transactions such as the planned acquisition of NxStage Medical and the planned divestiture of Sound Physicians.
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the first quarter today at 3:30 p.m. CEDT / 9:30 a.m. EDT. Details will be available on the companys website www.freseniusmedicalcare.com in the Investors/Events section. A replay will be available shortly after the call.
(3) EUR/USD 1.22
(4) Based on the companys latest available valuation of the North American operating segment
(5) 2017 adjusted for the effect of IFRS 15 implementation
(6) Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA, adjusted for the Sound valuation impact
(7) VA Agreement, Natural Disaster Costs, FCPA related charge, U.S. Tax Reform
Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the first quarter 2018.
Fresenius Medical Care is the worlds 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 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides 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 Companys website at www.freseniusmedicalcare.com.
Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaAs 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.
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
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Three months ended |
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in million, unaudited |
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2018 |
|
2017 |
|
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|
|
|
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Operating performance excluding special items |
|
|
|
|
|
|
|
|
|
|
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Revenue |
|
3,976 |
|
4,548 |
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Effect from IFRS 15 implementation |
|
|
|
(139 |
) |
Revenue adjusted |
|
3,976 |
|
4,409 |
|
VA Agreement(1) |
|
|
|
(100 |
) |
Revenue adjusted and excluding special items |
|
3,976 |
|
4,309 |
|
|
|
|
|
|
|
Operating income (EBIT) |
|
497 |
|
651 |
|
Initial Sound valuation impact(2) |
|
13 |
|
|
|
Operating income (EBIT) adjusted |
|
510 |
|
651 |
|
VA Agreement |
|
|
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(99 |
) |
Operating income (EBIT) adjusted and excluding special items |
|
510 |
|
552 |
|
|
|
|
|
|
|
Net income(3) |
|
279 |
|
308 |
|
Initial Sound valuation impact |
|
13 |
|
|
|
Net income(3) adjusted |
|
292 |
|
308 |
|
VA Agreement |
|
|
|
(59 |
) |
U.S. Tax Reform(4) |
|
(48 |
) |
|
|
Net income(3) adjusted and excluding special items |
|
244 |
|
249 |
|
(1) VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice
(2) Initial increase in valuation of Sound Pysicians share based payment program caused by sale of Sound Physicians
(3) Attributable to shareholders of FMC AG & Co. KGaA
(4) U.S. Tax Reform: impacts from the U.S. tax reform
Statement of earnings
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Three months ended |
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in million, except share data, unaudited |
|
2018 |
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2017 |
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Change |
|
Change |
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|
|
|
|
|
|
|
|
|
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Health Care Services |
|
3,209 |
|
3,769 |
|
-14.9 |
% |
-2.8 |
% | ||
Health Care Products |
|
767 |
|
779 |
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-1.5 |
% |
6.4 |
% | ||
Revenue |
|
3,976 |
|
4,548 |
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-12.6 |
% |
-1.2 |
% | ||
Revenue adjusted |
|
3,976 |
|
4,409 |
|
-9.8 |
% |
1.9 |
% | ||
Revenue adjusted and excluding special items |
|
3,976 |
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4,309 |
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-7.7 |
% |
4.3 |
% | ||
|
|
|
|
|
|
|
|
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Costs of revenue |
|
2,773 |
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2,956 |
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-6.2 |
% |
6.6 |
% | ||
Gross profit |
|
1,203 |
|
1,592 |
|
-24.4 |
% |
-15.7 |
% | ||
Selling, general and administrative |
|
692 |
|
924 |
|
-25.1 |
% |
-16.2 |
% | ||
Research and development |
|
32 |
|
32 |
|
-0.7 |
% |
5.0 |
% | ||
Income from equity method investees |
|
(18 |
) |
(15 |
) |
20.3 |
% |
21.7 |
% | ||
Operating income (EBIT) |
|
497 |
|
651 |
|
-23.7 |
% |
-15.2 |
% | ||
Operating income (EBIT) adjusted |
|
510 |
|
651 |
|
-21.7 |
% |
-12.9 |
% | ||
Operating income (EBIT) adjusted and excluding special items |
|
510 |
|
552 |
|
-7.6 |
% |
2.8 |
% | ||
|
|
|
|
|
|
|
|
|
| ||
Interest expense, net |
|
80 |
|
92 |
|
-13.8 |
% |
-4.8 |
% | ||
Income before taxes |
|
417 |
|
559 |
|
-25.4 |
% |
-16.9 |
% | ||
Income tax expense |
|
87 |
|
182 |
|
-52.0 |
% |
-47.1 |
% | ||
Net income |
|
330 |
|
377 |
|
-12.5 |
% |
-2.4 |
% | ||
Less: Net income attributable to non-controlling interests |
|
51 |
|
69 |
|
-25.7 |
% |
-14.4 |
% | ||
Net income(1) |
|
279 |
|
308 |
|
-9.6 |
% |
0.3 |
% | ||
Net income(1) adjusted |
|
292 |
|
308 |
|
-5.4 |
% |
5.2 |
% | ||
Net income(1) adjusted and excluding special items |
|
244 |
|
249 |
|
-2.2 |
% |
8.4 |
% | ||
|
|
|
|
|
|
|
|
|
| ||
Operating income (EBIT) |
|
497 |
|
651 |
|
-23.7 |
% |
-15.2 |
% | ||
Depreciation and amortization |
|
175 |
|
190 |
|
-7.9 |
% |
2.1 |
% | ||
EBITDA |
|
672 |
|
841 |
|
-20.1 |
% |
-11.3 |
% | ||
EBITDA margin |
|
16.9 |
% |
18.5 |
% |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Weighted average number of shares |
|
306,453,070 |
|
306,241,321 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Basic earnings per share |
|
|
0.91 |
|
|
1.01 |
|
-9.7 |
% |
0.2 |
% |
Basic earnings per ADS |
|
|
0.45 |
|
|
0.50 |
|
-9.7 |
% |
0.2 |
% |
|
|
|
|
|
|
|
|
|
| ||
In percent of revenue |
|
|
|
|
|
|
|
|
| ||
Costs of revenue |
|
69.7 |
% |
65.0 |
% |
|
|
|
| ||
Gross profit |
|
30.3 |
% |
35.0 |
% |
|
|
|
| ||
Operating income (EBIT) |
|
12.5 |
% |
14.3 |
% |
|
|
|
| ||
Net income(1) |
|
7.0 |
% |
6.8 |
% |
|
|
|
|
(1) Attributable to shareholders of FMC AG & Co. KGaA
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE RESULTS FOR THE FIRST QUARTER 2018
May 3, 2018
Investor Relations
phone: +49 6172 609 2525
fax: +49 6172 609 2301
email: ir@fmc-ag.com
Content: |
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Statement of earnings |
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page 2 |
Segment information |
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page 3 |
Balance sheet |
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page 4 |
Cash flow |
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page 5 |
Revenue development |
|
page 6 |
Key metrics |
|
page 7 |
Quality data |
|
page 8 |
Reconciliation |
|
page 9 |
Reconciliation excluding special items |
|
page 10 |
Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaAs reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Copyright by Fresenius Medical Care AG & Co. KGaA
Statement of earnings
|
|
Three months ended March 31 |
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|
|
|
Change |
| ||
in million, except share data, unaudited |
|
2018 |
|
2017 |
|
Change |
|
at cc |
| ||
Health Care Services |
|
3,209 |
|
3,769 |
|
-14.9 |
% |
-2.8 |
% | ||
Health Care Products |
|
767 |
|
779 |
|
-1.5 |
% |
6.4 |
% | ||
Total revenue |
|
3,976 |
|
4,548 |
|
-12.6 |
% |
-1.2 |
% | ||
|
|
|
|
|
|
|
|
|
| ||
Costs of revenue |
|
2,773 |
|
2,956 |
|
-6.2 |
% |
6.6 |
% | ||
Gross profit |
|
1,203 |
|
1,592 |
|
-24.4 |
% |
-15.7 |
% | ||
Selling, general and administrative |
|
692 |
|
924 |
|
-25.1 |
% |
-16.2 |
% | ||
Research and development |
|
32 |
|
32 |
|
-0.7 |
% |
5.0 |
% | ||
Income from equity method investees |
|
(18 |
) |
(15 |
) |
20.3 |
% |
21.7 |
% | ||
Operating income (EBIT) |
|
497 |
|
651 |
|
-23.7 |
% |
-15.2 |
% | ||
|
|
|
|
|
|
|
|
|
| ||
Interest income |
|
(24 |
) |
(29 |
) |
-15.8 |
% |
-13.6 |
% | ||
Interest expense |
|
104 |
|
121 |
|
-14.2 |
% |
-6.9 |
% | ||
Interest expense, net |
|
80 |
|
92 |
|
-13.8 |
% |
-4.8 |
% | ||
Income before taxes |
|
417 |
|
559 |
|
-25.4 |
% |
-16.9 |
% | ||
Income tax expense |
|
87 |
|
182 |
|
-52.0 |
% |
-47.1 |
% | ||
Net income |
|
330 |
|
377 |
|
-12.5 |
% |
-2.4 |
% | ||
Less: Net income attributable to noncontrolling interests |
|
51 |
|
69 |
|
-25.7 |
% |
-14.4 |
% | ||
Net income attributable to shareholders of FMC AG & Co. KGaA |
|
279 |
|
308 |
|
-9.6 |
% |
0.3 |
% | ||
|
|
|
|
|
|
|
|
|
| ||
Operating income (EBIT) |
|
497 |
|
651 |
|
-23.7 |
% |
-15.2 |
% | ||
Depreciation and amortization |
|
175 |
|
190 |
|
-7.9 |
% |
2.1 |
% | ||
EBITDA |
|
672 |
|
841 |
|
-20.1 |
% |
-11.3 |
% | ||
EBITDA margin |
|
16.9 |
% |
18.5 |
% |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Weighted average number of shares |
|
306,453,070 |
|
306,241,321 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Basic earnings per share |
|
|
0.91 |
|
|
1.01 |
|
-9.7 |
% |
0.2 |
% |
Basic earnings per ADS |
|
|
0.45 |
|
|
0.50 |
|
-9.7 |
% |
0.2 |
% |
|
|
|
|
|
|
|
|
|
| ||
In percent of revenue |
|
|
|
|
|
|
|
|
| ||
Costs of revenue |
|
69.7 |
% |
65.0 |
% |
|
|
|
| ||
Gross profit |
|
30.3 |
% |
35.0 |
% |
|
|
|
| ||
Operating income (EBIT) |
|
12.5 |
% |
14.3 |
% |
|
|
|
| ||
Net income attributable to shareholders of FMC AG & Co. KGaA |
|
7.0 |
% |
6.8 |
% |
|
|
|
|
Segment information
|
|
Three months ended March 31 |
| ||||||
|
|
|
|
|
|
|
|
Change |
|
unaudited |
|
2018 |
|
2017 |
|
Change |
|
at cc |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
3,976 |
|
4,548 |
|
-12.6 |
% |
-1.2 |
% |
Operating income (EBIT) in million |
|
497 |
|
651 |
|
-23.7 |
% |
-15.2 |
% |
Operating income margin in % |
|
12.5 |
% |
14.3 |
% |
|
|
|
|
Delivered EBIT in million |
|
446 |
|
582 |
|
-23.5 |
% |
-15.3 |
% |
Days sales outstanding (DSO)(1) |
|
85 |
|
81 |
|
|
|
|
|
Employees (full-time equivalents) |
|
114,831 |
|
110,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
2,774 |
|
3,375 |
|
-17.8 |
% |
-5.1 |
% |
Operating income (EBIT) in million |
|
362 |
|
526 |
|
-31.1 |
% |
-21.4 |
% |
Operating income margin in % |
|
13.1 |
% |
15.6 |
% |
|
|
|
|
Delivered EBIT in million |
|
314 |
|
459 |
|
-31.7 |
% |
-22.3 |
% |
Days sales outstanding (DSO)(1) |
|
73 |
|
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
|
|
|
|
|
|
|
Revenue per dialysis treatment in US$(2) |
|
348 |
|
342 |
|
1.5 |
% |
n.a. |
|
Cost per dialysis treatment in US$(3) |
|
288 |
|
276 |
|
4.2 |
% |
n.a. |
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
636 |
|
614 |
|
3.6 |
% |
5.9 |
% |
Operating income (EBIT) in million |
|
109 |
|
114 |
|
-4.8 |
% |
-4.3 |
% |
Operating income margin in % |
|
17.1 |
% |
18.7 |
% |
|
|
|
|
Delivered EBIT in million |
|
108 |
|
114 |
|
-4.8 |
% |
-4.2 |
% |
Days sales outstanding (DSO)(1) |
|
103 |
|
102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
392 |
|
378 |
|
3.7 |
% |
13.5 |
% |
Operating income (EBIT) in million |
|
74 |
|
82 |
|
-9.3 |
% |
-3.8 |
% |
Operating income margin in % |
|
19.0 |
% |
21.7 |
% |
|
|
|
|
Delivered EBIT in million |
|
72 |
|
80 |
|
-10.0 |
% |
-4.7 |
% |
Days sales outstanding (DSO)(1) |
|
117 |
|
125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
170 |
|
177 |
|
-4.0 |
% |
17.4 |
% |
Operating income (EBIT) in million |
|
14 |
|
14 |
|
-2.0 |
% |
10.2 |
% |
Operating income margin in % |
|
8.3 |
% |
8.1 |
% |
|
|
|
|
Delivered EBIT in million |
|
14 |
|
14 |
|
-1.9 |
% |
10.3 |
% |
Days sales outstanding (DSO)(1) |
|
129 |
|
133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
4 |
|
4 |
|
-21.4 |
% |
-20.9 |
% |
Operating income (EBIT) in million |
|
(62 |
) |
(85 |
) |
-26.6 |
% |
-23.8 |
% |
Delivered EBIT in million |
|
(62 |
) |
(85 |
) |
-26.6 |
% |
-23.8 |
% |
(1) Concurrent with the implementation of IFRS 15 and IFRS 9 prior year data has been adjusted to conform to the current years presentation.
(2) Excl. the effects from the VA Agreement and IFRS 15 implementation, incl. these adjustments revenue per dialysis treatment was $371 for the three months ended March 31, 2017.
(3) Excl. the effects from IFRS 15 implementation, incl. IFRS 15 cost per dialysis treatment was $290 for the three months ended March 31, 2017.
Balance sheet
|
|
March 31 |
|
December 31 |
|
|
|
2018 |
|
2017 |
|
in million, except net leverage ratio |
|
(unaudited) |
|
(audited) |
|
Assets |
|
|
|
|
|
Current assets |
|
6,844 |
|
6,374 |
|
Goodwill and intangible assets |
|
12,517 |
|
12,787 |
|
Other non-current assets |
|
4,796 |
|
4,864 |
|
Total assets |
|
24,157 |
|
24,025 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
5,428 |
|
5,300 |
|
Non-current liabilities |
|
7,818 |
|
7,897 |
|
Total equity |
|
10,911 |
|
10,828 |
|
Total liabilities and equity |
|
24,157 |
|
24,025 |
|
|
|
|
|
|
|
Equity/assets ratio |
|
45 |
% |
45 |
% |
|
|
|
|
|
|
Debt |
|
|
|
|
|
Short-term debt |
|
1,011 |
|
760 |
|
Short-term debt from related parties |
|
41 |
|
9 |
|
Current portion of long-term debt and capital lease obligations |
|
872 |
|
884 |
|
Long-term debt and capital lease obligations, less current portion |
|
5,797 |
|
5,795 |
|
Total debt |
|
7,721 |
|
7,448 |
|
Cash and cash equivalents |
|
846 |
|
978 |
|
Total net debt |
|
6,875 |
|
6,470 |
|
|
|
|
|
|
|
Annualized EBITDA(1) |
|
|
|
|
|
Operating income (EBIT) |
|
2,199 |
|
2,372 |
|
Depreciation and amortization |
|
717 |
|
731 |
|
Non-cash charges |
|
51 |
|
51 |
|
Annualized EBITDA |
|
2,967 |
|
3,154 |
|
|
|
|
|
|
|
Net leverage ratio |
|
2.3 |
|
2.1 |
|
(1) EBITDA : including largest acquisitions and divestitures.
Cash flow statement
|
|
Three months ended |
| ||
|
|
March 31 |
| ||
in million, unaudited |
|
2018 |
|
2017 |
|
Operating activities |
|
|
|
|
|
Net income |
|
330 |
|
377 |
|
Depreciation / amortization |
|
175 |
|
190 |
|
Change in working capital and other non-cash items |
|
(550 |
) |
(397 |
) |
Net cash provided by, (used in) operating activities |
|
(45 |
) |
170 |
|
In percent of revenue |
|
-1.1 |
% |
3.7 |
% |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(221 |
) |
(197 |
) |
Proceeds from sale of property, plant and equipment |
|
3 |
|
2 |
|
Capital expenditures, net |
|
(218 |
) |
(195 |
) |
|
|
|
|
|
|
Free cash flow |
|
(263 |
) |
(25 |
) |
In percent of revenue |
|
-6.6 |
% |
-0.6 |
% |
|
|
|
|
|
|
Acquisitions and investments, net of cash acquired, and purchases of intangible assets |
|
(181 |
) |
(160 |
) |
Proceeds from divestitures |
|
|
|
|
|
Acquisitions and investments, net of divestitures |
|
(181 |
) |
(160 |
) |
Free cash flow after investing activities |
|
(444 |
) |
(185 |
) |
Revenue development
|
|
|
|
|
|
|
|
|
|
|
|
Same |
|
|
|
|
|
|
|
|
|
|
|
|
|
market |
|
|
|
|
|
|
|
|
|
Change |
|
Organic |
|
treatment |
|
in million, unaudited |
|
2018 |
|
2017 |
|
Change |
|
at cc |
|
growth |
|
growth(1) |
|
Three months ended March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
3,976 |
|
4,548 |
|
-12.6 |
% |
-1.2 |
% |
2.8 |
% |
|
|
Health Care Services |
|
3,209 |
|
3,769 |
|
-14.9 |
% |
-2.8 |
% |
2.0 |
% |
2.3 |
% |
Thereof Dialysis Care revenue |
|
2,648 |
|
3,058 |
|
-13.4 |
% |
-1.3 |
% |
4.2 |
% |
2.3 |
% |
Thereof Care Coordination revenue |
|
561 |
|
711 |
|
-21.2 |
% |
-9.3 |
% |
-7.9 |
% |
|
|
Health Care Products |
|
767 |
|
779 |
|
-1.5 |
% |
6.4 |
% |
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
2,774 |
|
3,375 |
|
-17.8 |
% |
-5.1 |
% |
1.3 |
% |
|
|
Health Care Services |
|
2,590 |
|
3,165 |
|
-18.2 |
% |
-5.5 |
% |
1.3 |
% |
2,3 |
% |
Thereof Dialysis Care revenue |
|
2,075 |
|
2,474 |
|
-16.1 |
% |
-3.2 |
% |
4.0 |
% |
2,3 |
% |
Thereof Care Coordination revenue |
|
515 |
|
691 |
|
-25.5 |
% |
-14.0 |
% |
-8.7 |
% |
|
|
Health Care Products |
|
184 |
|
210 |
|
-12.1 |
% |
1.4 |
% |
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
636 |
|
614 |
|
3.6 |
% |
5.9 |
% |
4.1 |
% |
|
|
Health Care Services |
|
314 |
|
303 |
|
3.6 |
% |
5.7 |
% |
1.7 |
% |
2.4 |
% |
Health Care Products |
|
322 |
|
311 |
|
3.6 |
% |
6.2 |
% |
6.4 |
% |
|
|
Thereof Dialysis Products |
|
302 |
|
290 |
|
4.2 |
% |
7.0 |
% |
7.3 |
% |
|
|
Thereof Non-Dialysis Products |
|
20 |
|
21 |
|
-6.1 |
% |
-5.7 |
% |
-5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
392 |
|
378 |
|
3.7 |
% |
13.5 |
% |
7.0 |
% |
|
|
Health Care Services |
|
184 |
|
169 |
|
8.5 |
% |
20.0 |
% |
5.5 |
% |
4.2 |
% |
Thereof Dialysis Care revenue |
|
138 |
|
149 |
|
-7.6 |
% |
2.3 |
% |
4.0 |
% |
4.2 |
% |
Thereof Care Coordination revenue |
|
46 |
|
20 |
|
129.6 |
% |
153.6 |
% |
15.7 |
% |
|
|
Health Care Products |
|
208 |
|
209 |
|
-0.2 |
% |
8.3 |
% |
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
170 |
|
177 |
|
-4.0 |
% |
17.4 |
% |
15.8 |
% |
|
|
Health Care Services |
|
121 |
|
132 |
|
-8.4 |
% |
14.7 |
% |
12.4 |
% |
1.1 |
% |
Health Care Products |
|
49 |
|
45 |
|
8.7 |
% |
25.4 |
% |
25.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
4 |
|
4 |
|
-21.4 |
% |
-20.9 |
% |
|
|
|
|
(1) same market treatment growth = organic growth less price effects
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 calculate these non-IFRS financial measures at constant exchange rates 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. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarters year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term 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 companys revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items from period to period. However we 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.
Key metrics North America segment
|
|
Three months ended March 31 |
| ||||||
|
|
|
|
|
|
|
|
Change |
|
unaudited |
|
2018 |
|
2017 |
|
Change |
|
at cc |
|
|
|
|
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
2,259 |
|
2,684 |
|
-15.8 |
% |
-2.8 |
% |
Operating income (EBIT) in million |
|
349 |
|
527 |
|
-33.7 |
% |
-24.4 |
% |
Operating income margin in % |
|
15.4 |
% |
19.6 |
% |
|
|
|
|
Delivered EBIT in million |
|
304 |
|
467 |
|
-34.9 |
% |
-25.9 |
% |
|
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
|
|
|
Revenue in million |
|
515 |
|
691 |
|
-25.5 |
% |
-14.0 |
% |
Operating income (EBIT) in million |
|
13 |
|
(1 |
) |
-1684.8 |
% |
-1929.5 |
% |
Operating income margin in % |
|
2.6 |
% |
-0.1 |
% |
|
|
|
|
Delivered EBIT in million |
|
10 |
|
(8 |
) |
-228.3 |
% |
-248.1 |
% |
Key metrics Care Coordination
|
|
Three months ended March 31 |
| ||||||
|
|
|
|
|
|
|
|
Change |
|
unaudited |
|
2018 |
|
2017 |
|
Change |
|
at cc |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Member months under medical cost management(1) |
|
165,672 |
|
141,950 |
|
16.7 |
% |
|
|
Medical cost under management (in million)(1) |
|
1,186 |
|
1,004 |
|
18.1 |
% |
36.3 |
% |
Care Coordination patient encounters(1) |
|
1,957,694 |
|
1,608,179 |
|
21.7 |
% |
|
|
(1) The metrics may be understated due to a physician mapping issue related to the BPCI program within a CMS system which has not yet been resolved. Additionally, data presented for the BPCI and ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.
Key metrics Dialysis Care Services
|
|
Three months ended March 31, 2018 |
| ||||||||||||
|
|
|
|
Growth |
|
|
|
|
|
Growth |
|
|
|
Growth |
|
unaudited |
|
Clinics |
|
in % |
|
De novos |
|
Patients |
|
in % |
|
Treatments |
|
in % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
3,790 |
|
4 |
% |
35 |
|
322,253 |
|
4 |
% |
12,154,164 |
|
3 |
% |
North America |
|
2,419 |
|
4 |
% |
24 |
|
197,339 |
|
4 |
% |
7,473,764 |
|
3 |
% |
EMEA |
|
754 |
|
4 |
% |
2 |
|
63,114 |
|
5 |
% |
2,387,160 |
|
5 |
% |
Asia-Pacific |
|
385 |
|
2 |
% |
9 |
|
30,194 |
|
2 |
% |
1,060,114 |
|
2 |
% |
Latin America |
|
232 |
|
0 |
% |
|
|
31,606 |
|
5 |
% |
1,233,126 |
|
4 |
% |
Quality data(1)
|
|
North America |
|
EMEA |
|
Latin America |
|
Asia-Pacific |
| ||||||||
in % of patients |
|
Q1 2018 |
|
Q1 2017 |
|
Q1 2018 |
|
Q1 2017 |
|
Q1 2018 |
|
Q1 2017 |
|
Q1 2018 |
|
Q1 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kt/v > 1.2 |
|
98 |
|
98 |
|
95 |
|
95 |
|
92 |
|
93 |
|
96 |
|
96 |
|
Hemoglobin = 10-12 g/dl |
|
72 |
|
72 |
|
83 |
|
82 |
|
52 |
|
52 |
|
57 |
|
59 |
|
Calcium = 8.4-10.2 mg/dl |
|
85 |
|
84 |
|
80 |
|
77 |
|
78 |
|
78 |
|
74 |
|
75 |
|
Albumin > 3.5 g/dl |
|
79 |
|
78 |
|
88 |
|
88 |
|
90 |
|
90 |
|
89 |
|
87 |
|
Phosphate < 5.5 mg/dl |
|
62 |
|
63 |
|
81 |
|
79 |
|
76 |
|
75 |
|
68 |
|
67 |
|
Patients without catheter (after 90 days) |
|
82 |
|
83 |
|
80 |
|
81 |
|
80 |
|
81 |
|
87 |
|
89 |
|
in days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days in hospital per patient year |
|
10.2 |
|
10.2 |
|
7.6 |
|
7.9 |
|
4.0 |
|
4.0 |
|
3.6 |
|
4.0 |
|
(1) Definitions cf. Annual Report 2017, Section Non-Financial Group Report
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
Three months ended |
| ||
|
|
March 31 |
| ||
in million, unaudited |
|
2018 |
|
2017 |
|
Delivered EBIT reconciliation |
|
|
|
|
|
Total |
|
|
|
|
|
Operating income (EBIT) |
|
497 |
|
651 |
|
less noncontrolling interests |
|
(51 |
) |
(69 |
) |
Delivered EBIT |
|
446 |
|
582 |
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Operating income (EBIT) |
|
362 |
|
526 |
|
less noncontrolling interests |
|
(48 |
) |
(67 |
) |
Delivered EBIT |
|
314 |
|
459 |
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
Operating income (EBIT) |
|
349 |
|
527 |
|
less noncontrolling interests |
|
(45 |
) |
(60 |
) |
Delivered EBIT |
|
304 |
|
467 |
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
Operating income (EBIT) |
|
13 |
|
(1 |
) |
less noncontrolling interests |
|
(3 |
) |
(7 |
) |
Delivered EBIT |
|
10 |
|
(8 |
) |
|
|
|
|
|
|
EMEA |
|
|
|
|
|
Operating income (EBIT) |
|
109 |
|
114 |
|
less noncontrolling interests |
|
(1 |
) |
0 |
|
Delivered EBIT |
|
108 |
|
114 |
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
Operating income (EBIT) |
|
74 |
|
82 |
|
less noncontrolling interests |
|
(2 |
) |
(2 |
) |
Delivered EBIT |
|
72 |
|
80 |
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
Operating income (EBIT) |
|
68 |
|
79 |
|
less noncontrolling interests |
|
(2 |
) |
(2 |
) |
Delivered EBIT |
|
66 |
|
77 |
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
Operating income (EBIT) |
|
6 |
|
3 |
|
less noncontrolling interests |
|
0 |
|
0 |
|
Delivered EBIT |
|
6 |
|
3 |
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
Operating income (EBIT) |
|
14 |
|
14 |
|
less noncontrolling interests |
|
0 |
|
0 |
|
Delivered EBIT |
|
14 |
|
14 |
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
Operating income (EBIT) |
|
(62 |
) |
(85 |
) |
less noncontrolling interests |
|
0 |
|
0 |
|
Delivered EBIT |
|
(62 |
) |
(85 |
) |
|
|
|
|
|
|
Reconciliation of net cash provided by operating activities to EBITDA(1) |
|
|
|
|
|
Total EBITDA |
|
672 |
|
841 |
|
Interest expense, net |
|
(80 |
) |
(92 |
) |
Income tax expense |
|
(87 |
) |
(182 |
) |
Change in working capital and other non-cash items |
|
(550 |
) |
(397 |
) |
Net cash provided by operating activities |
|
(45 |
) |
170 |
|
(1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Cares long-term debt instruments.
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
Three months ended |
| ||
|
|
March 31 |
| ||
in million, unaudited |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
Operating performance excluding special items |
|
|
|
|
|
Revenue |
|
|
|
|
|
Total |
|
|
|
|
|
Revenue |
|
3,976 |
|
4,548 |
|
VA Agreement(1) |
|
|
|
(100 |
) |
Effect from IFRS 15 implementation |
|
|
|
(139 |
) |
Revenue adjusted and excluding special items |
|
3,976 |
|
4,309 |
|
|
|
|
|
|
|
Health Care Sevices revenue |
|
3,209 |
|
3,769 |
|
VA Agreement |
|
|
|
(100 |
) |
Effect from IFRS 15 implementation |
|
|
|
(139 |
) |
Health Care Services revenue adjusted and excluding special items |
|
3,209 |
|
3,530 |
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Revenue |
|
2,774 |
|
3,375 |
|
VA Agreement |
|
|
|
(100 |
) |
Effect from IFRS 15 implementation |
|
|
|
(139 |
) |
Revenue adjusted and excluding special items |
|
2,774 |
|
3,136 |
|
|
|
|
|
|
|
Health Care Sevices revenue |
|
2,590 |
|
3,165 |
|
VA Agreement |
|
|
|
(100 |
) |
Effect from IFRS 15 implementation |
|
|
|
(139 |
) |
Health Care Services revenue adjusted and excluding special items |
|
2,590 |
|
2,926 |
|
|
|
|
|
|
|
Dialysis Care Services revenue |
|
2,075 |
|
2,474 |
|
VA Agreement |
|
|
|
(100 |
) |
Effect from IFRS 15 implementation |
|
|
|
(88 |
) |
Dialysis Care Services revenue adjusted and excluding special items |
|
2,075 |
|
2,286 |
|
|
|
|
|
|
|
Care Coordination revenue |
|
515 |
|
691 |
|
Effect from IFRS 15 implementation |
|
|
|
(51 |
) |
Care Coordination revenue adjusted |
|
515 |
|
640 |
|
|
|
|
|
|
|
Operating income (EBIT) |
|
|
|
|
|
Total |
|
|
|
|
|
Operating income (EBIT) |
|
497 |
|
651 |
|
VA Agreement |
|
|
|
(99 |
) |
Initial Sound Valuation Impact (2) |
|
13 |
|
|
|
Operating income (EBIT) adjusted and excluding special items |
|
510 |
|
552 |
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Operating income (EBIT) |
|
362 |
|
526 |
|
VA Agreement |
|
|
|
(99 |
) |
Initial Sound Valuation Impact |
|
13 |
|
|
|
Operating income (EBIT) adjusted and excluding special items |
|
375 |
|
427 |
|
|
|
|
|
|
|
Dialysis operating income (EBIT) |
|
349 |
|
527 |
|
VA Agreement |
|
|
|
(99 |
) |
Dialysis operating income (EBIT) excluding special items |
|
349 |
|
428 |
|
|
|
|
|
|
|
Care Coordination operating income (EBIT) |
|
13 |
|
(1 |
) |
Initial Sound Valuation Impact |
|
13 |
|
|
|
Care Coordination operating income (EBIT) adjusted |
|
26 |
|
(1 |
) |
|
|
|
|
|
|
Net income (3) |
|
279 |
|
308 |
|
VA Agreement |
|
|
|
(59 |
) |
U.S. Tax Reform(4) |
|
(48 |
) |
|
|
Initial Sound Valuation Impact |
|
13 |
|
|
|
Net income(3) adjusted and excluding special items |
|
244 |
|
249 |
|
(1) VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice
(2) Initial increase in valuation of Sound Pysicians`share based payment program caused by sale of Sound Physicians
(3) Attributable to shareholders of FMC AG & Co. KGaA
(4) U.S. Tax Reform: impacts from U.S. tax reform
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