EX-99.2 3 a19-21360_1ex99d2.htm EX-99.2

Exhibit 99.2

 

Fresenius Medical Care AG & Co. KGaA COMPLETE OVERVIEW OF THE RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2019 30-Sep-2019 Investor Relations phone: +49 6172 609 2525 email: ir@fmc-ag.com Content: Statement of earnings Segment information Balance sheet Cash flow Revenue development Key metrics Quality data Reconciliation Reconciliation adjusted results page 2 page 3 page 4 page 5 page 6 page 7 page 8 page 9 page 10 Disclaimer This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. Copyright by Fresenius Medical Care AG & Co. KGaA 1 of 10 October 29, 2019

 

 

Statement of earnings in € million, except share data Three months ended September 30 Nine months ended September 30 at cc at cc Health Care Products 927 800 15.9% 13.4% 2,632 2,395 9.9% 8.0% Gross profit 1,346 1,267 6.2% 2.8% 3,942 3,774 4.4% 0.4% (Gain) loss related to divestitures of Care Coordination activities (2) (10) -74.9% -75.5% (14) (830) -98.3% -98.4% Income from equity method investees (21) (18) 14.2% 13.8% (63) (52) 20.3% 19.9% Operating income margin in % 13.5% 13.0% 12.8% 19.8% Interest income (21) (9) 134.5% 130.7% (47) (31) 50.7% 48.3% Interest expense, net 105 76 38.0% 33.1% 327 244 34.2% 28.6% Income tax expense 98 102 292 448 -34.7% -37.5% -3.1% -6.5% Net income attributable to noncontrolling interests 59 64 -7.8% -11.7% 177 176 0.3% -5.4% Depreciation and amortization 410 179 128.9% 120.9% 1,159 534 117.0% 108.0% EBITDA margin in % 22.7% 17.4% 21.8% 24.2% Weighted average number of shares 301,440,412 306,495,661 303,832,868 306,434,923 Basic earnings per share €1.10 €0.93 18.8% 14.0% €2.82 €5.08 -44.5% -46.9% Based on the IFRIC agenda decision relating to the applicability of IAS 12 to the accounting for interest and penalties related to income taxes and an interpretation issued by the Accounting Standards Committee of Germany (ASCG) approved in September 2018 interest and penalties related to income taxes have been reclassified from income tax expense to interest expense, net in the amount of €2 million for the three months and €5 million for the nine months ended September 30, 2018. Statement of earnings page 2 of 10 October 29, 2019 Basic earnings per ADS€0.55€0.4618.8%14.0%€1.41€2.54-44.5%-46.9% EBITDA1,00570642.4%37.1%2,8122,959-5.0%-9.1% Operating income (EBIT)59552713.0%8.6%1,6532,425-31.8%-34.9% Net income attributable to shareholders of FMC-AG & Co. KGaA33328516.9%12.1%8571,557-45.0%-47.4% Net income39234912.3%7.8%1,0341,733-40.4%-43.1% Income before taxes4904518.8%4.5%1,3262,181-39.2%-42.0% Interest expense1268548.0%43.2%37427536.1%30.8% Operating income (EBIT)59552713.0%8.6%1,6532,425-31.8%-34.9% Research and development492691.0%87.5%1379543.3%39.9% Selling, general and administrative725742-2.5%-5.5%2,2292,1364.3%0.8% Costs of revenue3,0732,79110.1%6.8%8,9558,4735.7%1.9% Total revenue4,4194,0588.9%5.6%12,89712,2475.3%1.5% Health Care Services3,4923,2587.2%3.6%10,2659,8524.2%-0.1% 20192018ChangeChange20192018ChangeChange

 

 

Segment information Three months ended September 30 Nine months ended September 30 at cc at cc Revenue in € million 4,419 4,058 8.9% 5.6% 12,897 12,247 5.3% 1.5% Operating income margin in % 13.5% 13.0% 12.8% 19.8% Days sales outstanding (DSO) 73 77 Revenue in € million 3,073 2,843 8.1% 3.3% 9,021 8,589 5.0% -1.2% Operating income margin in % 15.5% 18.5% 14.2% 25.3% Days sales outstanding (DSO) 57 60 U.S. Cost per dialysis treatment in US$ 1 292 290 0.6% n.a. 297 289 2.5% n.a. EMEA Operating income (EBIT) in € million 100 88 14.4% 14.1% 334 302 10.9% 11.2% Delivered EBIT in € million 98 86 13.9% 13.6% 330 299 10.5% 10.8% Revenue in € million 475 421 12.6% 9.1% 1,360 1,235 10.1% 7.4% Operating income margin in % 19.0% 15.7% 18.7% 17.7% Days sales outstanding (DSO) 119 127 Latin America Operating income (EBIT) in € million 11 (1) n.a. n.a. 28 24 17.2% 0.0% n.a. n.a. Delivered EBIT in € million 11 (1) 28 24 16.8% -0.6% Revenue in € million 6 3 73.4% 73.1% 16 10 38.4% 38.1% Delivered EBIT in € million (83) (151) -44.9% -45.2% (242) (292) -17.1% -18.1% 1 2019 excluding the effects from the implementation of IFRS 16. Segment information page 3 of 10 October 29, 2019 Operating income (EBIT) in € million(83)(151)-44.9%-45.2%(242)(292)-17.2%-18.1% Corporate Days sales outstanding (DSO)119125 Operating income margin in %5.8%-0.9%5.4%4.7% Revenue in € million1821716.6%19.9%5165052.2%19.9% Delivered EBIT in € million886536.8%32.6%24821217.0%14.3% Operating income (EBIT) in € million906636.4%32.1%25421816.5%13.7% Asia-Pacific Days sales outstanding (DSO)98100 Operating income margin in %14.6%14.1%16.8%15.8% Revenue in € million68362010.3%9.3%1,9841,9084.0%4.4% Revenue per dialysis treatment in US$347356-2.5%n.a.3533530.2%n.a. Delivered EBIT in € million422464-9.1%-13.0%1,1122,006-44.6%-47.4% Operating income (EBIT) in € million477525-9.1%-13.1%1,2792,173-41.2%-44.3% North America Employees (full-time equivalents)120,734112,134 Delivered EBIT in € million53646315.9%11.4%1,4762,249-34.3%-37.2% Operating income (EBIT) in € million59552713.0%8.6%1,6532,425-31.8%-34.9% Total 20192018ChangeChange20192018ChangeChange

 

Balance sheet in € million, except net leverage ratio September 30 September 30 December 31 Current assets 7,231 7,847 Right of use assets 4,343 - Total assets 33,169 26,242 Liabilities and equity Non-current liabilities 12,247 7,072 Total liabilities and equity 33,169 26,242 Equity/assets ratio 41% 49% Debt Short-term debt from related parties 358 358 189 Current portion of long-term lease liabilities 628 - - Long-term debt, less current portion 6,086 6,030 5,045 Long-term lease liabilities from related parties, less current portion 108 - - Cash and cash equivalents 965 965 2,146 Total net debt 12,704 7,954 5,400 Annualized EBITDA1 2,233 2,215 Operating income (EBIT) 2,523 Non-cash charges 46 46 45 Annualized EBITDA 3,934 3,128 2,976 1 EBITDA: including acquisitions and divestitures with a purchase price above €50 million and excluding the (gain) loss related to divestitures of Care Coordination activities with a sales price above €50 million and excluding NxStage related transaction costs. Balance sheet page 4 of 10 October 29, 2019 Net leverage ratio3.22.51.8 Depreciation and amortization1,365849716 Total debt13,6698,9197,546 Long-term lease liabilities, less current portion3,936--Current portion of long-term lease liabilities from related parties16--Current portion of long-term debt9719651,107 Short-term debt1,5661,5661,205 excluding IFRS 16 implementation Total equity13,54312,902 Current liabilities7,3796,268 Other non-current assets5,9495,504 Goodwill and intangible assets15,64612,891 Assets 201920192018

 

 

Cash flow statement in € millio Three months ended September 30 Nine months ended September 30 Operating activities Depreciation / amortization 410 179 1,159 534 Net cash provided by (used in) operating activities 868 753 1,796 1,364 Purchases of property, plant and equipment (291) (266) (788) (732) Capital expenditures, net (284) (257) (777) (702) Free cash flow 584 496 1,019 662 Proceeds from divestitures 33 5 56 1,667 Free cash flow after investing activities 516 39 (949) 1,521 Cash flow page 5 of 10 October 29, 2019 Acquisitions and investments, net of divestitures(68)(457)(1,968)859 Acquisitions and investments, net of cash acquired, and purchases of intangible assets(101)(462)(2,024)(808) In percent of revenue13.2%12.2%7.9%5.4% Proceeds from sale of property, plant and equipment791130 Investing activities In percent of revenue19.7%18.6%13.9%11.1% Change in working capital and other non-cash items66225(397)(903) Net income3923491,0341,733 2019201820192018

 

 

Revenue development Same market treatment growth1 in € million Change at cc Organic growth 2019 2018 Change Three months ended September 30 Health Care Services 3,492 3,258 7.2% 3.6% 4.2% 3.7% Thereof Care Coordination revenue 337 354 -4.7% -8.5% -8.8% 3.9%2 Health Care Services 2,795 2,628 6.4% 1.6% 3.0% Thereof Dialysis Care revenue 2,522 2,328 8.3% 3.5% 4.8% 3.9%2 Thereof Care Coordination revenue 273 300 -9.0% -13.0% -12.3% Health Care Services 343 314 9.2% 8.2% 6.8% 3.6% Thereof Dialysis Products 320 288 11.2% 10.2% 10.5% Health Care Services 223 194 14.6% 9.3% 7.6% 6.6% Thereof Care Coordination revenue 64 54 19.9% 16.2% 9.4% Health Care Services 131 122 7.9% 25.9% 19.5% 2.7% Total revenue 12,897 12,247 5.3% 1.5% 5.2% Thereof Dialysis Care revenue 9,233 8,359 10.4% 6.0% 6.0% 3.6% Health Care Products 2,632 2,395 9.9% 8.0% 5.3% North America 9,021 8,589 5.0% -1.2% 4.4% Health Care Services 8,264 7,979 3.6% -2.5% 4.2% 3.8%2 3.8%2 Thereof Dialysis Care revenue 7,405 6,634 11.6% 5.0% 5.2% Health Care Products 757 610 24.1% 16.8% 6.5% EMEA 1,984 1,908 4.0% 4.4% 4.0% Health Care Products 982 965 1.8% 2.0% 2.3% Thereof Non-Dialysis Products 56 56 0.7% 0.7% 0.7% Asia-Pacific 1,360 1,235 10.1% 7.4% 7.2% Thereof Dialysis Care revenue 459 421 9.0% 3.9% 5.9% 7.0% Health Care Products 728 666 9.3% 7.9% 8.0% Latin America 516 505 2.2% 19.9% 16.7% Health Care Products 149 144 3.7% 8.4% 7.3% Corporate 16 10 38.4% 38.1% 1 same market treatment growth = organic growth less price effects 2 U.S. (excl. Mexico), same market treatment growth North America: 3.4% for the three and nine months ended September 30, 2019 Revenue development page 6 of 10 October 29, 2019 Health Care Services3673611.6%24.5%20.6%1.9% Thereof Care Coordination revenue17314816.9%14.5%7.0% Health Care Services63256911.0%6.7%6.2%7.0% Thereof Dialysis Products9269091.9%2.0%2.4% Health Care Services1,0029436.3%6.9%5.7%3.6% Thereof Care Coordination revenue8591,345-36.1%-39.9%-4.3% Thereof Care Coordination revenue1,0321,493-30.8%-34.5%-2.5% Health Care Services10,2659,8524.2%-0.1%5.1%3.6% Nine months ended September 30 Corporate6373.4%73.1% Health Care Products51493.3%5.0%3.6% Latin America1821716.6%19.9%14.9% Health Care Products25222710.8%8.8%8.8% Thereof Dialysis Care revenue15914012.7%6.7%6.9%6.6% Asia-Pacific47542112.6%9.1%8.3% Thereof Non-Dialysis Products201814.2%14.1%14.1% Health Care Products34030611.4%10.4%10.7% EMEA68362010.3%9.3%8.8% Health Care Products27821529.5%23.5%10.3% North America3,0732,8438.1%3.3%3.4% Health Care Products92780015.9%13.4%9.6% Thereof Dialysis Care revenue3,1552,9048.6%5.1%5.7%3.7% Total revenue4,4194,0588.9%5.6%5.2%

 

 

Key metrics North America segment Three months ended September 30 Nine months ended September 30 at cc at cc Revenue in € million 2,800 2,543 10.1% 5.2% 8,162 7,244 12.7% 6.0% Operating income (EBIT) in € million 500 489 2.3% -2.3% 1,261 1,255 0.5% -4.8% Operating income margin in % 17.9% 19.2% 15.4% 17.3% Revenue in € million 273 300 -9.0% -13.0% 859 1,345 -36.1% -39.9% Operating income margin in % -8.3% 12.1% 2.1% 68.3% Key metrics Dialysis Care Services Nine months ended September 30, 2019 in % in % in % Total 4,003 3% 98 342,488 4% 38,757,809 4% North America 2,585 4% 58 209,633 4% 23,872,968 4% EMEA 784 2% 22 66,259 3% 7,503,691 3% Asia-Pacific 401 3% 16 32,239 3% 3,398,594 5% Key metrics Care Coordination Nine months ended September 30 at cc North America Member months under medical cost management1 482,970 486,786 -0.8% Medical cost under management (in € million)1 3,299 -4.6% -10.2% 3,149 1 Data presented for the ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics. Key metrics page 7 of 10 October 29, 2019 Care Coordination patient encounters774,7644,149,516-81.3% 20192018ChangeChange Latin America2333%234,3577%3,982,5566% ClinicsGrowthDe novosPatientsGrowthTreatmentsGrowth Delivered EBIT in € million(28)30n.a.n.a.5903-99.4%-99.5% Operating income (EBIT) in € million(23)36n.a.n.a.18918-98.0%-98.2% Care Coordination Delivered EBIT in € million4504343.8%-1.0%1,1071,1030.4%-4.8% Dialysis 20192018ChangeChange20192018ChangeChange

 

Quality data1 in % of patients North America EMEA Latin America Asia-Pacific Kt/v 1.2 97 97 94 94 91 91 95 96 Hemoglobin = 10-12 g/dl 71 72 82 82 50 53 52 58 Albumin 3.5 g/dl1) 80 80 90 90 90 91 88 89 Patients without catheter (after 90 days) 82 83 78 79 80 80 83 87 in days Days in hospital per patient year 10.1 10.8 7.5 7.7 4.2 4.2 2.4 3.5 1 Definitions cf. Annual Report 2018, Section "Non-Financial Group Report" Quality data page 8 of 10 October 29, 2019 Phosphate 5.5 mg/dl6061807976766567 Calcium = 8.4-10.2 mg/dl8285798077757173 Q3 2019Q3 2018Q3 2019Q3 2018Q3 2019Q3 2018Q3 2019Q3 2018

 

 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures Three months ended September 30 Nine months ended September 30 in € million Delivered EBIT reconciliation Operating income (EBIT) 595 527 1,653 2,425 Delivered EBIT 536 463 1,476 2,249 North America less noncontrolling interests (55) (61) (167) (167) Operating income (EBIT) 500 489 1,261 1,255 Delivered EBIT 450 434 1,107 1,103 Care Coordination less noncontrolling interests (5) (6) (13) (15) Operating income (EBIT) 100 88 334 302 Delivered EBIT 98 86 330 299 Asia-Pacific less noncontrolling interests (2) (1) (6) (6) Operating income (EBIT) 81 57 235 197 Delivered EBIT 79 57 230 193 Care Coordination Operating income (EBIT) 9 9 19 21 less noncontrolling interests 0 (1) (1) (2) Delivered EBIT 9 8 18 19 Operating income (EBIT) 11 (1) 28 24 Delivered EBIT 11 (1) 28 24 Corporate less noncontrolling interests 0 0 0 0 Reconciliation of net cash provided by operating activities to EBITDA1 2,812 2,959 Total EBITDA Income tax expense (292) (448) Net cash provided by operating activities 1,796 1,364 1 EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care's long-term debt instruments. Reconciliation page 9 of 10 October 29, 2019 Change in working capital and other non-cash items(397)(903) Interest expense, net(327)(244) Delivered EBIT(83)(151)(242)(292) Operating income (EBIT)(83)(151)(242)(292) less noncontrolling interests0000 Latin America less noncontrolling interests(2)0(5)(4) Dialysis Delivered EBIT8865248212 Operating income (EBIT)9066254218 less noncontrolling interests(2)(2)(4)(3) EMEA Delivered EBIT(28)305903 Operating income (EBIT)(23)3618918 less noncontrolling interests(50)(55)(154)(152) Dialysis Delivered EBIT4224641,1122,006 Operating income (EBIT)4775251,2792,173 less noncontrolling interests(59)(64)(177)(176) Total 2019201820192018

 

 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures in € million, except share data (Gain) loss related to divestitures of Care Coordination activities (Gain) loss related to divestitures of Care Coordination activities Change (adjusted results) at cc Cost optimization costs Results 2019 Adjusted FCPA related charge Results 2018 Adjusted Change (adjusted results) Results 2019 IFRS 16 Implementation NxStage operations NxStage costs Results 2018 Sound H11 Three months ended September 30 Health Care Services 3,492 (5) 3,487 3,258 (7) 3,251 7.3% 3.7% Health Care Products 927 35 (74) 888 800 800 11.0% 8.8% 3,073 2,843 North America 35 (79) 3,029 (7) 2,836 6.8% 2.1% thereof Dialysis Care 2,522 (5) 2,517 2,328 2,328 8.1% 3.3% Health Care Products 278 35 (74) 239 215 215 11.4% 6.3% EBITDA 1,005 (199) (21) 2 7 (2) 792 706 (1) (10) 75 770 2.8% -0.9% Total operating income (EBIT) 595 (21) 0 2 25 (2) 599 527 0 (10) 75 592 1.2% -2.7% North America 477 (15) 1 2 22 (2) 485 525 0 (10) 515 -5.8% -9.9% 500 Dialysis (12) 1 2 22 513 489 489 5.0% 0.2% Care Coordination (23) (3) (2) (28) 36 0 (10) 26 n.a. n.a. 100 EMEA (1) 3 102 88 88 16.3% 16.1% Asia-Pacific 90 (3) 87 66 66 32.4% 28.3% Dialysis 81 (2) 79 57 57 37.9% 33.5% Care Coordination 9 (1) 8 9 9 -4.5% -6.3% Latin America 11 (1) 10 (1) (1) n.a. n.a. Corporate (83) (1) (1) (85) (151) 75 (76) 13.3% 12.6% Income tax expense 98 6 6 1 7 18 136 102 0 7 109 24.0% 19.2% Net income2 333 16 15 1 18 (20) 363 285 0 (17) 75 343 6.1% 1.9% Nine months ended September 30 Total revenue 12,897 75 (188) 12,784 12,247 (516) 11,731 9.0% 5.0% Health Care Services 10,265 (11) 10,254 9,852 (516) 9,336 9.8% 5.3% Health Care Products 2,632 75 (177) 2,530 2,395 2,395 5.6% 3.9% North America 9,021 75 (188) 8,908 8,589 (516) 8,073 10.3% 3.8% Health Care Services 8,264 (11) 8,253 7,979 (516) 7,463 10.6% 4.1% thereof Dialysis Care 7,405 (11) 7,394 6,634 6,634 11.5% 4.9% thereof Care Coordination 859 859 1,345 (516) 829 3.6% -2.5% Health Care Products 757 75 (177) 655 610 610 7.3% 1.0% EBITDA 2,812 (583) (32) 22 14 (14) 2,219 2,959 (23) (830) 75 2,181 1.8% -2.5% Total operating income (EBIT) 1,653 (68) 16 22 32 (14) 1,641 2,425 (14) (830) 75 1,656 -0.9% -5.3% North America 1,279 (55) 19 22 29 (14) 1,280 2,173 (14) (830) 1,329 -3.7% -8.8% Dialysis 1,261 (50) 19 22 29 1,281 1,255 1,255 2.1% -3.3% Care Coordination 18 (5) (14) (1) 918 (14) (830) 74 n.a. n.a. EMEA 334 (4) 3 333 302 302 10.5% 10.8% Asia-Pacific 254 (4) 250 218 218 14.5% 11.7% Dialysis 235 (3) 232 197 197 17.4% 14.3% Care Coordination 19 (1) 18 21 21 -13.4% -13.0% Latin America 28 (2) 26 24 24 7.4% -10.8% Corporate (242) (3) (3) 0 (248) (292) 75 (217) 13.9% 12.6% Interest expense, net 327 (128) (50) 149 244 (21) 223 -33.0% -35.4% Income tax expense 292 15 17 6 9 15 354 448 2 (140) 310 14.4% 9.3% Net income attributable to noncontrolling interests 177 177 176 1 177 0.0% -5.7% Net income2 857 45 49 16 23 (29) 961 1,557 4 (690) 75 946 1.5% -3.0% Basic earnings per share € 2.82 € 0.14 € 0.16 € 0.05 € 0.08 (€ 0.09) € 3.16 € 5.08 € 0.02 (€ 2.25) € 0.24 € 3.09 2.4% -2.2% 1 Contribution of Sound Physicians 2 Attributable to shareholders of FMC-AG & Co. KGaA Reconciliation adjusted results page 10 of 10 October 29, 2019 Basic earnings per share€ 1.10€ 0.06€ 0.05€ 0.01€ 0.06(€ 0.07)€ 1.21€ 0.93€ 0.00(€ 0.05)€ 0.24€ 1.127.8%3.6% Net income attributable to noncontrolling interests595964064-7.8%-11.7% Interest expense, net105(43)(21)4176076-45.7%-47.4% thereof Care Coordination273273300(7)293-6.9%-10.9% Health Care Services2,795(5)2,7902,628(7)2,6216.4%1.7% Total revenue4,41935(79)4,3754,058(7)4,0518.0%4.7%