0001104659-20-023065.txt : 20200220 0001104659-20-023065.hdr.sgml : 20200220 20200220063451 ACCESSION NUMBER: 0001104659-20-023065 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20200220 FILED AS OF DATE: 20200220 DATE AS OF CHANGE: 20200220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Fresenius Medical Care AG & Co. KGaA CENTRAL INDEX KEY: 0001333141 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32749 FILM NUMBER: 20632491 BUSINESS ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 BUSINESS PHONE: 011-49-6172-6090 MAIL ADDRESS: STREET 1: ELSE-KROENER STRASSE 1 CITY: BAD HOMBURG STATE: 2M ZIP: 61352 6-K 1 a20-1281_56k.htm 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of February 2020

 

FRESENIUS MEDICAL CARE AG & Co. KGaA

(Translation of registrant’s name into English)

 

Else-Kröner Strasse 1

61346 Bad Homburg

Germany

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F   x                   Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes   o                              No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82

 

 

 


 

On February 19, 2019 Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its fourth quarter and fiscal year 2019 results. A copy of the Press Release is furnished as Exhibit 99.1 and the corresponding financial figures as Exhibit 99.2.

 

The attached Press Release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our fourth quarter and fiscal year 2019 results consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) delivered operating income (earnings before interest and taxes), (c) free cash flow, and (d) results presented in constant currency. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-IFRS financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures to the most comparable IFRS financial measures are included in the attached Press Release in a separate statement setting forth the reconciliation and in the Cash Flow Statement.

 

The Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

DATE: February 20, 2020

 

 

FRESENIUS MEDICAL CARE AG & Co. KGaA,

 

a partnership limited by shares, represented by:

 

 

 

FRESENIUS MEDICAL CARE MANAGEMENT AG, its General Partner

 

 

 

 

By:

/s/ RICE POWELL

 

 

Name:

Rice Powell

 

 

Title:

Chief Executive Officer and Chairman of the Management Board of the General Partner

 

 

 

 

By:

/s/ HELEN GIZA

 

 

Name:

Helen Giza

 

 

Title:

Chief Financial Officer and Member of the Management Board of the General Partner

 

3


EX-99.1 2 a20-1281_5ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Press Release

Media Contact

 

Matthias Link

 

T +49 6172 609-2872

 

matthias.link@fmc-ag.com

 

 

 

Contact for analysts and investors

 

Dr. Dominik Heger

 

T +49 6172 609-2601

 

dominik.heger@fmc-ag.com

 

 

 

www.freseniusmedicalcare.com

 

February 19, 2020

 

Fresenius Medical Care achieves 2019 guidance and confirms 2020 outlook of sustainable, profitable growth

 

·                      Solid Q4 performance

 

·                      Full year guidance achieved

 

·                      Investments in home dialysis and growth markets as planned

 

·                      Cost optimization initiatives as planned

 

·                      23rd dividend increase proposed

 

·                      Outlook 2020 confirmed

 

Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “2019 was a successful year for Fresenius Medical Care. We achieved our revenue and net income targets and are therefore proposing our 23rd consecutive dividend increase. Last year we also invested more strongly in our future growth, particularly in the area of home dialysis and in developing economies. In addition, our measures to increase efficiency and optimize our cost base are progressing according to plan. As a consequence, we expect growth to accelerate, and confirm the 2020 outlook that we issued early last year.”

 

1


 

Key figures (IFRS)

 

 

 

Q4

 

Q4

 

Growth

 

Growth

 

FY

 

FY

 

Growth

 

Growth

 

EUR million

 

2019

 

2018

 

yoy

 

yoy, cc

 

2019

 

2018

 

yoy

 

yoy, cc

 

Revenue

 

4,580

 

4,300

 

7

%

4

%

17,477

 

16,547

 

6

%

2

%

Revenue adjusted(1)

 

4,546

 

4,294

 

6

%

4

%

17,329

 

16,026

 

8

%

5

%

Operating income

 

616

 

613

 

1

%

-2

%

2,270

 

3,038

 

-25

%

-28

%

Operating income adjusted(1)

 

655

 

636

 

3

%

0

%

2,296

 

2,292

 

0

%

-4

%

Net income(2)

 

343

 

425

 

-19

%

-21

%

1,200

 

1,982

 

-39

%

-42

%

Net income adjusted(1),(2)

 

408

 

395

 

3

%

0

%

1,369

 

1,341

 

2

%

-2

%

Basic EPS (EUR)

 

1.14

 

1.38

 

-17

%

-20

%

3.96

 

6.47

 

-39

%

-41

%

Basic EPS adjusted(1)

 

1.36

 

1.29

 

6

%

3

%

4.52

 

4.37

 

3

%

-1

%

 

cc = at constant currency, EPS = earnings per share

 

2020 guidance confirmed: mid to high single digit growth rates

 

Fresenius Medical Care expects both revenue and net income to grow at a mid to high single digit rate in 2020. These targets are in constant currency and exclude special items(3) and are based on the adjusted results 2019 including the effects of the operations of the NxStage acquisition and the IFRS 16 implementation.

 

Investment year 2019

 

The continued expansion of home dialysis in the U.S. is a key growth area for Fresenius Medical Care. As announced at the beginning of 2019, our investments focused on home training facilities, educational staff and materials along with scaling the distribution infrastructure to support both products and services. The closing of the acquisition of NxStage Medical, Inc. in February 2019 marked a milestone in our home dialysis strategy. In 2019, Fresenius Medical Care reported record growth with more than 25,000 patients being treated at home in North America.

 

The second major focus of investment were developing economies. In China, the world’s fastest-growing dialysis market, Fresenius Medical Care invested in expanding production capacities, research and development activities as well as in strengthening its services business, that has almost doubled with now 11 clinics. In September 2019, we launched the 4008A dialysis machine in China, laying an important foundation for the further development of the market.

 


(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

(3)    Special items are effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.

 

2


 

In addition, Fresenius Medical Care invested EUR 91 million (EUR 83 million in North America) to sustainably improve the cost base of our clinical infrastructure. This 2019 cost optimization program is expected to be accretive to net income from the current financial year onwards. In 2019, we achieved further sustained cost improvements as part of our Global Efficiency Program (GEP II), in line with the originally anticipated contribution.

 

Creating shareholder value

 

Based on the solid results for 2019, the General Partner and the Supervisory Board will propose a new record dividend of EUR 1.20 per share, corresponding to a total payout of EUR 358 million, to the Annual General Meeting in May 2020. This proposal would result in the 23rd consecutive dividend increase.

 

In order to create additional shareholder value, Fresenius Medical Care launched a share buy-back program in 2019. Between March and December 2019, 8.9 million own shares were bought back at a total purchase price of EUR 600 million. The Company intends to use its residual authorization of EUR 400 million over the course of 2020.

 

Patients, Clinics and Employees

 

As of December 31, 2019, Fresenius Medical Care treated 345,096 patients in 3,994 dialysis clinics worldwide. At the end of 2019, Fresenius Medical Care had 120,659 employees (full-time equivalents) worldwide, compared to 112,658 employees as of December 31, 2018.

 

Strong organic revenue growth continued

 

Revenue for the fourth quarter of 2019 increased by 7% (+4% at constant currency) to EUR 4,580 million. Organic growth remained strong at 5%(4). Adjusted revenue increased by 6% (+4% at constant currency) to EUR 4,546 million. For a detailed reconciliation, please refer to the table at the end of the press release.

 

Health Care Services revenue rose by 6% to EUR 3,607 million (+3% at constant currency), while Health Care Products revenue grew by 10% to EUR 973 million (+8% at constant currency). This includes the negative effect from a revenue recognition adjustment of EUR 86 million (FY 2019: EUR 170 million) for accounts receivable in legal dispute in North America.

 


(4)    Organic growth excludes a revenue recognition adjustment for accounts receivable in legal dispute and effects from IFRS 16 implementation.

 

3


 

Revenue for the full year 2019 rose by 6% to EUR 17,477 million (+2% at constant currency). Organic growth amounted to 5%. Adjusted revenue increased by 8% (+5% at constant currency) to EUR 17,329 million. Health Care Services revenue grew by 5% (+1% at constant currency) to EUR 13,872 million. Growth in same market treatments, contributions from acquisitions and increases in organic revenue per treatment were partly offset by decreases attributable to prior year revenue from divested activities of Sound Physicians and closed or sold clinics. Health Care Products revenue for the full year 2019 rose by 10% to EUR 3,605 million (+8% at constant currency). This increase was mainly driven by higher sales of home dialysis products as a result of the NxStage acquisition and by higher sales of dialyzers. This was partially offset by lower sales of machines as a result of changes in the accounting treatment for sale-leaseback transactions due to the IFRS 16 implementation.

 

In the fourth quarter operating income increased by 1% to EUR 616 million (-2% at constant currency), resulting in a margin of 13.5% (Q4 2018: 14.3%). Adjusted operating income grew by 3% to EUR 655 million (stable at constant currency), resulting in a margin of 14.4% (Q4 2018:14.8%). The included negative effect from a revenue recognition adjustment for accounts receivable in legal dispute in North America is EUR 86 million (FY 2019: EUR 170 million). For a detailed reconciliation, please refer to the table at the end of the press release.

 

Operating income for the full year decreased by 25% to EUR 2,270 million (-28% at constant currency), resulting in a margin of 13.0% (FY 2018: 18.4%). The 2018 basis includes the gain from the divestiture of Care Coordination activities including Sound Physicians. On an adjusted basis, operating income remained stable at EUR 2,296 million (-4% at constant currency), resulting in a margin of 13.2% (FY 2018: 14.3%).

 

Net income(2) for the fourth quarter decreased by 19% to EUR 343 million (-21% at constant currency). Adjusted net income(2) increased by 3% to EUR 408 million (+0% at constant currency). For a detailed reconciliation, please refer to the table at the end of the press release. Basic earnings per share (EPS) decreased by 17% to EUR 1.14 (-20% at constant currency). On an adjusted basis, EPS increased by 6% to EUR 1.36 (+3% at constant currency).

 

For the full year, net income decreased by 39% to EUR 1,200 million (-42% at constant currency). EPS decreased by 39% to EUR 3.96 (-41% at constant currency). Here, too, the 2018 basis includes the gain from the divestiture of Care Coordination activities including Sound Physicians. On an adjusted basis, net income grew by 2% to EUR 1,369 million (-2% at constant currency). This resulted in a 3% increase in adjusted EPS to EUR 4.52 (-1% at constant currency).

 

4


 

Strong Cash-flow development

 

In the fourth quarter, Fresenius Medical Care generated EUR 771 million of operating cash flow (Q4 2018: EUR 698 million) resulting in a margin of 16.8% (Q4 2018: 16.2%). The increase was largely driven by the IFRS 16 implementation. Free cash flow (net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 434 million (Q4 2018: EUR 397 million) resulting in a margin of 9.5% (Q4 2018: 9.2%).

 

In the full year, we generated operating cash flow of EUR 2,567 million resulting in a margin of 14.7% (FY 2018: EUR 2,062 million, 12.5%). The increase was mainly due to the IFRS 16 implementation. Free cash flow for the full year 2019 amounted to EUR 1,454 million resulting in a margin of 8.3% (FY 2018: EUR 1,059 million, 6.4%).

 

Regional developments

 

In North America, revenue in the fourth quarter of 2019 increased by 6% to EUR 3,174 million (+3% at constant currency, +5% organic growth). For the full year 2019, North America revenue rose by 5% to EUR 12,195 million (stable at constant currency, +4% organic).

 

Operating income for the fourth quarter grew by 5% to EUR 515 million (+2% at constant currency). For the full year, operating income decreased by 33% to EUR 1,794 million (-36% at constant currency). The 2018 basis includes the gain from the divestiture of Care Coordination activities including Sound Physicians.

 

In EMEA, revenue in the fourth quarter increased by 4% to EUR 709 million (+4% at constant currency, +3% organic). For the full year, EMEA revenue rose by 4% to EUR 2,693 million (+4% at constant currency, +4% organic).

 

Operating income for the fourth quarter rose by 17% to EUR 114 million (+17% at constant currency). For the full year, operating income grew by 12% to EUR 448 million (+13% at constant currency) resulting in a margin of 16.6% (FY 2018: 15.4%). This improvement was mainly driven by a reduction of a contingent consideration liability related to Xenios and a positive impact from the IFRS 16 implementation.

 

In Asia-Pacific, revenue in the fourth quarter 2019 grew by 10% to EUR 499 million (+7% at constant currency, +6% organic). For the full year, revenue increased by 10% to EUR 1,859 million (+7% at constant currency, +7% organic).

 

Operating income for the fourth quarter decreased by 13% to EUR 75 million (-14% at constant currency). The decline in margin in the fourth quarter was mainly due to investments in business growth and expenses for the cost optimization program. For the full year, operating income grew by 8% to EUR 329 million (+6% at constant currency).

 

5


 

Regarding the coronavirus (nCoV) outbreak the first priority is to ensure continuation of treatments for our patients and the safety of our employees. It is too early to quantify the potential impact to our Asia-Pacific operations.

 

In Latin America, revenue for the fourth quarter increased by 6% to EUR 193 million (+24% at constant currency, +19% organic). For the full year, Latin America revenue increased by 3% (+21% at constant currency, +17% organic) to EUR 709 million.

 

Operating income for the fourth quarter increased by 189% to EUR 15 million (+201% at constant currency). For the full year, operating income increased by 47% to EUR 43 million (+35% at constant currency). The improved margin was mainly due to favorable foreign currency transaction effects.

 

Press conference

 

Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year tomorrow on Thursday, February 20, 2020, at 10:00 a.m. CET / 4:00 a.m. EST. The press conference will be webcasted on the company’s website www.freseniusmedicalcare.com in the “Media” section. A replay will be available shortly after the conference.

 

Conference call

 

We will also host a conference call to discuss the results of the fourth quarter tomorrow on Thursday, February 20, 2020, at 3:30 p.m. CET / 09:30 a.m. EST. Details will be available on the company’s website www.freseniusmedicalcare.com in the “Investors” section. A replay will be available shortly after the call.

 

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the fourth quarter and full year 2019. Our 20-F disclosure provides more details.

 

Fresenius Medical Care is the world’s leading provider of products and services for individuals with renal diseases of which around 3.5 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,994 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 345,096 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

 

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

 

6


 

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 various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, results of clinical studies, 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.

 

7


 

Statement of earnings

 

 

 

Three months ended December 31

 

 

 

 

 

 

 

 

 

Change

 

in € million, except share data

 

2019

 

2018

 

Change

 

at cc

 

Health Care Services

 

3,607

 

3,413

 

5.7

%

3.5

%

Health Care Products

 

973

 

887

 

9.6

%

8.1

%

Revenue

 

4,580

 

4,300

 

6.5

%

4.4

%

Revenue adjusted

 

4,546

 

4,294

 

5.9

%

3.8

%

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

3,126

 

2,920

 

7.1

%

5.1

%

Gross profit

 

1,454

 

1,380

 

5.3

%

3.0

%

Selling, general and administrative

 

815

 

733

 

10.9

%

8.1

%

(Gain) loss related to divestitures of Care Coordination activities

 

(15

)

21

 

n.a.

 

n.a.

 

Research and development

 

49

 

34

 

44.9

%

42.7

%

Income from equity method investees

 

(11

)

(21

)

(49.3

)%

(49.6

)%

Operating income

 

616

 

613

 

0.5

%

(2.1

)%

Operating income adjusted

 

655

 

636

 

2.9

%

0.1

%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

102

 

58

 

78.3

%

74.4

%

Income before taxes

 

514

 

555

 

(7.5

)%

(10.0

)%

Income tax expense

 

109

 

63

 

72.5

%

68.3

%

Net income

 

405

 

492

 

(17.8

)%

(20.0

)%

Net income attributable to noncontrolling interests

 

62

 

67

 

(8.0

)%

(10.9

)%

Net income(1)

 

343

 

425

 

(19.4

)%

(21.5

)%

Net income(1) adjusted

 

408

 

395

 

3.5

%

0.5

%

Weighted average number of shares

 

299,304,206

 

306,858,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

1.14

 

1.38

 

(17.3

)%

(19.5

)%

Basic earnings per share adjusted

 

1.36

 

1.29

 

6.1

%

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

Operating income

 

13.5

%

14.3

%

 

 

 

 

Operating income adjusted

 

14.4

%

14.8

%

 

 

 

 

 


(1) Attributable to shareholders of FMC-AG & Co. KGaA

 

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

 

8


 

Statement of earnings

 

 

 

Twelve months ended December 31

 

 

 

 

 

 

 

 

 

Change

 

in € million, except share data

 

2019

 

2018

 

Change

 

at cc

 

Health Care Services

 

13,872

 

13,264

 

4.6

%

0.8

%

Health Care Products

 

3,605

 

3,283

 

9.8

%

8.0

%

Revenue

 

17,477

 

16,547

 

5.6

%

2.2

%

Revenue adjusted

 

17,329

 

16,026

 

8.1

%

4.7

%

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

12,081

 

11,392

 

6.0

%

2.7

%

Gross profit

 

5,396

 

5,155

 

4.7

%

1.1

%

Selling, general and administrative

 

3,061

 

2,885

 

6.1

%

2.9

%

(Gain) loss related to divestitures of Care Coordination activities

 

(29

)

(809

)

(96.4

)%

(96.6

)%

Research and development

 

168

 

114

 

47.3

%

44.0

%

Income from equity method investees

 

(74

)

(73

)

0.5

%

0.1

%

Operating income

 

2,270

 

3,038

 

(25.3

)%

(28.2

)%

Operating income adjusted

 

2,296

 

2,292

 

0.2

%

(3.8

)%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

429

 

301

 

42.6

%

37.4

%

Income before taxes

 

1,841

 

2,737

 

(32.8

)%

(35.5

)%

Income tax expense

 

402

 

511

 

(21.4

)%

(24.4

)%

Net income

 

1,439

 

2,226

 

(35.4

)%

(38.0

)%

Net income attributable to noncontrolling interests

 

239

 

244

 

(2.0

)%

(6.9

)%

Net income(1)

 

1,200

 

1,982

 

(39.5

)%

(41.8

)%

Net income(1) adjusted

 

1,369

 

1,341

 

2.1

%

(2.0

)%

Weighted average number of shares

 

302,691,397

 

306,541,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

3.96

 

6.47

 

(38.7

)%

(41.1

)%

Basic earnings per share adjusted

 

4.52

 

4.37

 

3.4

%

(0.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

In percent of revenue

 

 

 

 

 

 

 

 

 

Operating income

 

13.0

%

18.4

%

 

 

 

 

Operating income adjusted

 

13.2

%

14.3

%

 

 

 

 

 


(1) Attributable to shareholders of FMC-AG & Co. KGaA

 

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

 

9


 

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

 

 

 

Three months ended

 

Twelve months ended

 

 

 

December 31

 

December 31

 

in € million

 

2019

 

2018

 

2019

 

2018

 

Operating performance on an adjusted basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

4,580

 

4,300

 

17,477

 

16,547

 

IFRS 16 Implementation

 

40

 

 

 

115

 

 

 

NxStage operations

 

(74

)

 

 

(263

)

 

 

Sound H1(1)

 

 

 

(6

)

 

 

(521

)

Revenue adjusted

 

4,546

 

4,294

 

17,329

 

16,026

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

616

 

613

 

2,270

 

3,038

 

IFRS 16 Implementation

 

(8

)

 

 

(75

)

 

 

NxStage operations

 

0

 

 

 

15

 

 

 

NxStage costs

 

2

 

 

 

24

 

 

 

Cost optimization costs

 

60

 

 

 

91

 

 

 

Sound H1(1)

 

 

 

0

 

 

 

(14

)

(Gain) loss related to divestitures of Care Coordination activities

 

(15

)

21

 

(29

)

(809

)

FCPA related charge

 

 

 

2

 

 

 

77

 

Operating income adjusted

 

655

 

636

 

2,296

 

2,292

 

 

 

 

 

 

 

 

 

 

 

Net income(2)

 

343

 

425

 

1,200

 

1,982

 

IFRS 16 Implementation

 

25

 

 

 

70

 

 

 

NxStage operations

 

15

 

 

 

63

 

 

 

NxStage costs

 

1

 

 

 

18

 

 

 

Cost optimization costs

 

44

 

 

 

67

 

 

 

Sound H1(1)

 

 

 

0

 

 

 

4

 

(Gain) loss related to divestitures of Care Coordination activities

 

(20

)

17

 

(49

)

(673

)

FCPA related charge

 

 

 

(47

)

 

 

28

 

Net income(2) adjusted

 

408

 

395

 

1,369

 

1,341

 

 


(1)   Contribution of Sound Physicians

(2)   Attributable to shareholders of FMC-AG & Co. KGaA

 

10


EX-99.2 3 a20-1281_5ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE RESULTS FOR THE FOURTH QUARTER

AND FULL YEAR 2019

February 20, 2020

 

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 adjusted results

page 10

Outlook 2020

page 11

 

Disclaimer

 

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA’s reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 

February 20, 2020

 

1


 

Statement of earnings

 

 

 

Three months ended December 31

 

Twelve months ended December 31

 

in € million, except share data

 

2019

 

2018

 

Change

 

Change
at cc

 

2019

 

2018

 

Change

 

Change
at cc

 

Health Care Services

 

3,607

 

3,413

 

5.7

%

3.5

%

13,872

 

13,264

 

4.6

%

0.8

%

Health Care Products

 

973

 

887

 

9.6

%

8.1

%

3,605

 

3,283

 

9.8

%

8.0

%

Total revenue

 

4,580

 

4,300

 

6.5

%

4.4

%

17,477

 

16,547

 

5.6

%

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

3,126

 

2,920

 

7.1

%

5.1

%

12,081

 

11,392

 

6.0

%

2.7

%

Gross profit

 

1,454

 

1,380

 

5.3

%

3.0

%

5,396

 

5,155

 

4.7

%

1.1

%

Selling, general and administrative

 

815

 

733

 

10.9

%

8.1

%

3,061

 

2,885

 

6.1

%

2.9

%

(Gain) loss related to divestitures of Care Coordination activities

 

(15

)

21

 

n.a.

 

n.a.

 

(29

)

(809

)

(96.4

)%

(96.6

)%

Research and development

 

49

 

34

 

44.9

%

42.7

%

168

 

114

 

47.3

%

44.0

%

Income from equity method investees

 

(11

)

(21

)

(49.3

)%

(49.6

)%

(74

)

(73

)

0.5

%

0.1

%

Operating income

 

616

 

613

 

0.5

%

(2.1

)%

2,270

 

3,038

 

(25.3

)%

(28.2

)%

Operating income margin in %

 

13.5

%

14.3

%

 

 

 

 

13.0

%

18.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(15

)

(116

)

(87.2

)%

(86.9

)%

(62

)

(147

)

(58.2

)%

(58.5

)%

Interest expense

 

117

 

174

 

(32.5

)%

(33.6

)%

491

 

448

 

9.5

%

5.8

%

Interest expense, net

 

102

 

58

 

78.3

%

74.4

%

429

 

301

 

42.6

%

37.4

%

Income before taxes

 

514

 

555

 

(7.5

)%

(10.0

)%

1,841

 

2,737

 

(32.8

)%

(35.5

)%

Income tax expense

 

109

 

63

 

72.5

%

68.3

%

402

 

511

 

(21.4

)%

(24.4

)%

Net income

 

405

 

492

 

(17.8

)%

(20.0

)%

1,439

 

2,226

 

(35.4

)%

(38.0

)%

Net income attributable to noncontrolling interests

 

62

 

67

 

(8.0

)%

(10.9

)%

239

 

244

 

(2.0

)%

(6.9

)%

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

 

343

 

425

 

(19.4

)%

(21.5

)%

1,200

 

1,982

 

(39.5

)%

(41.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

616

 

613

 

0.5

%

(2.1

)%

2,270

 

3,038

 

(25.3

)%

(28.2

)%

Depreciation, amortization and impairment loss

 

435

 

256

 

70.0

%

65.8

%

1,593

 

789

 

101.8

%

94.4

%

EBITDA

 

1,051

 

869

 

21.0

%

17.9

%

3,863

 

3,827

 

0.9

%

-2.9

%

EBITDA margin in %

 

22.9

%

20.2

%

 

 

 

 

22.1

%

23.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

299,304,206

 

306,858,573

 

 

 

 

 

302,691,397

 

306,541,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.14

 

$

1.38

 

(17.3

)%

(19.5

)%

$

3.96

 

$

6.47

 

(38.7

)%

(41.1

)%

Basic earnings per ADS

 

$

0.57

 

$

0.69

 

(17.3

)%

(19.5

)%

$

1.98

 

$

3.23

 

(38.7

)%

(41.1

)%

 

2


 

Segment information

 

 

 

Three months ended December 31

 

Twelve months ended December 31

 

 

 

2019

 

2018

 

Change

 

Change
at cc

 

2019

 

2018

 

Change

 

Change
at cc

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

4,580

 

4,300

 

6.5

%

4.4

%

17,477

 

16,547

 

5.6

%

2.2

%

Operating income in € million

 

616

 

613

 

0.5

%

(2.1

)%

2,270

 

3,038

 

(25.3

)%

(28.2

)%

Operating income margin in %

 

13.5

%

14.3

%

 

 

 

 

13.0

%

18.4

%

 

 

 

 

Delivered Operating Income in € million

 

554

 

546

 

1.6

%

(1.0

)%

2,031

 

2,794

 

(27.3

)%

(30.1

)%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

73

 

75

 

 

 

 

 

Employees (full-time equivalents)

 

 

 

 

 

 

 

 

 

120,659

 

112,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

3,174

 

2,981

 

6.5

%

3.1

%

12,195

 

11,570

 

5.4

%

(0.1

)%

Operating income in € million

 

515

 

492

 

4.8

%

1.6

%

1,794

 

2,665

 

(32.7

)%

(35.8

)%

Operating income margin in %

 

16.2

%

16.5

%

 

 

 

 

14.7

%

23.0

%

 

 

 

 

Delivered Operating Income in € million

 

456

 

428

 

6.5

%

3.3

%

1,569

 

2,434

 

(35.6

)%

(38.5

)%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

58

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per dialysis treatment in US$

 

349

 

358

 

(2.7

)%

n.a.

 

352

 

354

 

(0.5

)%

n.a.

 

Cost per dialysis treatment in US$ (1)

 

292

 

288

 

1.6

%

n.a.

 

296

 

289

 

2.3

%

n.a.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

709

 

679

 

4.5

%

3.7

%

2,693

 

2,587

 

4.1

%

4.2

%

Operating income in € million

 

114

 

97

 

16.9

%

17.3

%

448

 

399

 

12.4

%

12.7

%

Operating income margin in %

 

16.1

%

14.4

%

 

 

 

 

16.6

%

15.4

%

 

 

 

 

Delivered Operating Income in € million

 

113

 

97

 

17.6

%

18.0

%

443

 

395

 

12.3

%

12.6

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

96

 

98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

499

 

454

 

9.8

%

6.6

%

1,859

 

1,689

 

10.0

%

7.1

%

Operating income in € million

 

75

 

86

 

(12.9

)%

(14.4

)%

329

 

304

 

8.2

%

5.8

%

Operating income margin in %

 

15.0

%

18.8

%

 

 

 

 

17.7

%

18.0

%

 

 

 

 

Delivered Operating Income in € million

 

73

 

83

 

(12.4

)%

(13.9

)%

321

 

295

 

8.7

%

6.4

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

113

 

116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

193

 

182

 

6.3

%

23.6

%

709

 

686

 

3.3

%

20.9

%

Operating income in € million

 

15

 

5

 

189.1

%

200.6

%

43

 

29

 

47.4

%

35.2

%

Operating income margin in %

 

7.6

%

2.8

%

 

 

 

 

6.0

%

4.2

%

 

 

 

 

Delivered Operating Income in € million

 

15

 

5

 

194.1

%

205.8

%

42

 

29

 

47.3

%

35.0

%

Days sales outstanding (DSO)

 

 

 

 

 

 

 

 

 

127

 

119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue in € million

 

5

 

4

 

31.5

%

31.4

%

21

 

15

 

36.7

%

36.5

%

Operating income in € million

 

(103

)

(67

)

52.8

%

52.3

%

(344

)

(359

)

(4.1

)%

(5.0

)%

Delivered Operating Income in € million

 

(103

)

(67

)

52.9

%

52.4

%

(344

)

(359

)

(4.1

)%

(4.9

)%

 


(1) 2019 excluding the effects from the implementation of IFRS 16.

 

3


 

Balance sheet

 

 

 

December 31

 

December 31

 

December 31

 

in € million, except net leverage ratio

 

2019

 

2019

 

2018

 

Assets

 

 

 

 

 

 

 

Current assets

 

7,165

 

 

 

7,847

 

Goodwill and intangible assets

 

15,444

 

 

 

12,891

 

Right of use assets

 

4,325

 

 

 

 

Other non-current assets

 

6,001

 

 

 

5,504

 

Total assets

 

32,935

 

 

 

26,242

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

Current liabilities

 

7,007

 

 

 

6,268

 

Non-current liabilities

 

12,701

 

 

 

7,072

 

Total equity

 

13,227

 

 

 

12,902

 

Total liabilities and equity

 

32,935

 

 

 

26,242

 

 

 

 

 

 

 

 

 

Equity/assets ratio

 

40

%

 

 

49

%

 

 

 

 

 

excluding IFRS 16

 

 

 

 

 

 

 

implementation

 

 

 

Debt and lease liabilities

 

 

 

 

 

 

 

Short-term debt

 

1,150

 

1,150

 

1,205

 

Short-term debt from related parties

 

22

 

22

 

189

 

Current portion of long-term debt

 

1,447

 

1,435

 

1,107

 

Current portion of long-term lease liabilities

 

622

 

 

 

Current portion of long-term lease liabilities from related parties

 

17

 

 

 

Long-term debt, less current portion

 

6,458

 

6,378

 

5,045

 

Long-term lease liabilities, less current portion

 

3,960

 

 

 

Long-term lease liabilities from related parties, less current portion

 

106

 

 

 

Total debt and lease liabilities

 

13,782

 

8,985

 

7,546

 

Minus: Cash and cash equivalents

 

(1,008

)

(1,008

)

(2,146

)

Total net debt and lease liabilities

 

12,774

 

7,977

 

5,400

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures

 

 

 

 

 

 

 

Net income

 

1,439

 

1,509

 

2,226

 

Income tax expense

 

402

 

429

 

511

 

Interest income

 

(62

)

(62

)

(147

)

Interest expense

 

491

 

319

 

448

 

Depreciation and amortization

 

1,553

 

854

 

725

 

Adjustments (1)

 

110

 

110

 

(722

)

Adjusted EBITDA

 

3,933

 

3,159

 

3,041

 

 

 

 

 

 

 

 

 

Net leverage ratio

 

3.2

 

2.5

 

1.8

 

 


(1) Acquisitions and divestitures made within the reporting period with a purchase price above a €50 M threshold as defined in the Amended 2012 Credit Agreement (2019: -€71 M; 2018: -€23 M), non-cash charges, primarily related to pension expense (2019: €46 M; 2018: €45 M), impairment loss (2019: €40 M; 2018: €65 M), (gain) loss related to divestitures of Care Coordination activities with a sales price above €50 M (2018: -€809 M) and NxStage related transaction costs (2019: €95 M).

 

4


 

Cash flow statement

 

 

 

Three months ended
December 31

 

Twelve months ended
December 31

 

in € million

 

2019

 

2018

 

2019

 

2018

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

405

 

492

 

1,439

 

2,226

 

Depreciation / amortization / impairment loss

 

435

 

256

 

1,593

 

789

 

Change in working capital and other non-cash items

 

(69

)

(50

)

(465

)

(953

)

Net cash provided by (used in) operating activities

 

771

 

698

 

2,567

 

2,062

 

In percent of revenue

 

16.8

%

16.2

%

14.7

%

12.5

%

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(337

)

(325

)

(1,125

)

(1,057

)

Proceeds from sale of property, plant and equipment

 

0

 

24

 

12

 

54

 

Capital expenditures, net

 

(337

)

(301

)

(1,113

)

(1,003

)

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

434

 

397

 

1,454

 

1,059

 

In percent of revenue

 

9.5

%

9.2

%

8.3

%

6.4

%

 

 

 

 

 

 

 

 

 

 

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

 

(208

)

(117

)

(2,233

)

(925

)

Proceeds from divestitures

 

4

 

16

 

60

 

1,683

 

Acquisitions and investments, net of divestitures

 

(204

)

(101

)

(2,173

)

758

 

Free cash flow after investing activities

 

230

 

296

 

(719

)

1,817

 

 

5


 

Revenue development

 

 

 

 

 

 

 

 

 

 

 

 

 

Same

 

 

 

 

 

 

 

 

 

 

 

 

 

market

 

 

 

 

 

 

 

 

 

Change

 

Organic

 

treatment

 

in € million

 

2019

 

2018

 

Change

 

at cc

 

growth

 

growth(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,580

 

4,300

 

6.5

%

4.4

%

5.2

%

 

 

Health Care Services

 

3,607

 

3,413

 

5.7

%

3.5

%

5.4

%

3.4

%

Thereof Dialysis Care revenue

 

3,214

 

3,062

 

5.0

%

2.9

%

5.1

%

3.4

%

Thereof Care Coordination revenue

 

393

 

351

 

11.9

%

8.3

%

8.2

%

 

 

Health Care Products

 

973

 

887

 

9.6

%

8.1

%

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,174

 

2,981

 

6.5

%

3.1

%

4.5

%

 

 

Health Care Services

 

2,893

 

2,746

 

5.3

%

2.0

%

4.6

%

3.4

%(2)

Thereof Dialysis Care revenue

 

2,568

 

2,455

 

4.6

%

1.3

%

4.2

%

3.4

%(2)

Thereof Care Coordination revenue

 

325

 

291

 

11.5

%

7.8

%

8.5

%

 

 

Health Care Products

 

281

 

235

 

19.7

%

15.8

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

709

 

679

 

4.5

%

3.7

%

3.5

%

 

 

Health Care Services

 

352

 

331

 

6.4

%

5.4

%

5.2

%

2.7

%

Health Care Products

 

357

 

348

 

2.7

%

2.1

%

2.0

%

 

 

Thereof Dialysis Products

 

337

 

330

 

2.3

%

1.7

%

1.5

%

 

 

Thereof Non-Dialysis Products

 

20

 

18

 

9.3

%

9.3

%

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

499

 

454

 

9.8

%

6.6

%

6.3

%

 

 

Health Care Services

 

230

 

207

 

11.2

%

6.8

%

6.4

%

7.3

%

Thereof Dialysis Care revenue

 

162

 

147

 

10.3

%

5.3

%

6.2

%

7.3

%

Thereof Care Coordination revenue

 

68

 

60

 

13.4

%

10.5

%

6.7

%

 

 

Health Care Products

 

269

 

247

 

8.6

%

6.4

%

6.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

193

 

182

 

6.3

%

23.6

%

19.0

%

 

 

Health Care Services

 

132

 

129

 

3.1

%

25.1

%

20.7

%

3.6

%

Health Care Products

 

61

 

53

 

14.0

%

19.9

%

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

5

 

4

 

31.5

%

31.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

17,477

 

16,547

 

5.6

%

2.2

%

5.2

%

 

 

Health Care Services

 

13,872

 

13,264

 

4.6

%

0.8

%

5.2

%

3.5

%

Thereof Dialysis Care revenue

 

12,447

 

11,420

 

9.0

%

5.2

%

5.7

%

3.5

%

Thereof Care Coordination revenue

 

1,425

 

1,844

 

(22.7

)%

(26.3

)%

0.4

%

 

 

Health Care Products

 

3,605

 

3,283

 

9.8

%

8.0

%

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

12,195

 

11,570

 

5.4

%

(0.1

)%

4.4

%

3.7

%(2)

Health Care Services

 

11,157

 

10,725

 

4.0

%

(1.4

)%

4.3

%

 

 

Thereof Dialysis Care revenue

 

9,973

 

9,089

 

9.7

%

4.0

%

5.0

%

3.7

%(2)

Thereof Care Coordination revenue

 

1,184

 

1,636

 

(27.6

)%

(31.4

)%

(1.0

)%

 

 

Health Care Products

 

1,038

 

845

 

22.9

%

16.5

%

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

2,693

 

2,587

 

4.1

%

4.2

%

3.8

%

 

 

Health Care Services

 

1,354

 

1,274

 

6.3

%

6.5

%

5.6

%

3.4

%

Health Care Products

 

1,339

 

1,313

 

2.0

%

2.0

%

2.2

%

 

 

Thereof Dialysis Products

 

1,263

 

1,239

 

2.0

%

2.0

%

2.2

%

 

 

Thereof Non-Dialysis Products

 

76

 

74

 

2.8

%

2.8

%

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia-Pacific

 

1,859

 

1,689

 

10.0

%

7.1

%

7.0

%

 

 

Health Care Services

 

862

 

776

 

11.1

%

6.7

%

6.3

%

7.1

%

Thereof Dialysis Care revenue

 

621

 

568

 

9.3

%

4.3

%

6.0

%

7.1

%

Thereof Care Coordination revenue

 

241

 

208

 

15.9

%

13.3

%

7.2

%

 

 

Health Care Products

 

997

 

913

 

9.1

%

7.5

%

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

709

 

686

 

3.3

%

20.9

%

17.3

%

 

 

Health Care Services

 

499

 

489

 

2.0

%

24.6

%

20.5

%

2.4

%

Health Care Products

 

210

 

197

 

6.5

%

11.6

%

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

21

 

15