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 July 2020
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 July 30, 2020 Fresenius Medical Care AG & Co. KGaA (the Company) issued a Press Release announcing its second quarter results for the period ending June 30, 2020. 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 second quarter 2020 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: July 30, 2020 |
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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 Powel |
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Title: |
Chief Executive Officer and Chairman of the Management Board of the General Partner |
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By: |
/s/ HELEN GIZA | |
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Name: |
Helen Giza |
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Title: |
Chief Financial Officer and Member of the Management Board of the General Partner |
Exhibit 99.1
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@fmc-ag.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 |
July 30, 2020
Fresenius Medical Care delivers very strong second quarter results
· Solid revenue growth continued
· Significant net income growth
· Exceptionally positive free cash flow development
· Financial targets for FY2020 confirmed inclusive of anticipated COVID-19 effects
Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: As anticipated, we saw the COVID-19 pandemic spread globally in the second quarter and continue to rise in Latin America and the U.S. In this challenging environment, the wide-ranging measures we took at a very early stage to ensure the continuity and quality of care for our patients are continuing to pay off. Together with the tireless efforts of our employees, these steps have given Fresenius Medical Care a strong performance in the first half of the year. This validates our core value proposition and the resiliency of our business model, which is grounded in our vertical integration strategy. Against this background and the anticipated financial net effect from COVID-19, we confirm our outlook for the financial year 2020. We continue to monitor further impacts of the pandemic and potential restrictions in the different markets.
Key figures (IFRS)
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Q2 2020 |
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Q2 2019 |
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Growth |
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Growth |
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H1 2020 |
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H1 2019 |
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Growth |
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Growth |
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Revenue |
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4,557 |
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4,345 |
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5 |
% |
5 |
% |
9,045 |
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8,478 |
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7 |
% |
6 |
% |
Operating income |
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656 |
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521 |
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26 |
% |
24 |
% |
1,211 |
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1,058 |
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14 |
% |
12 |
% |
Net income(1) |
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351 |
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254 |
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38 |
% |
36 |
% |
634 |
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525 |
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21 |
% |
18 |
% |
Net income adjusted(1),(2) |
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351 |
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250 |
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40 |
% |
38 |
% |
634 |
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536 |
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18 |
% |
16 |
% |
Basic EPS (EUR) |
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1.20 |
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0.84 |
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43 |
% |
41 |
% |
2.15 |
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1.72 |
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25 |
% |
22 |
% |
cc = at constant currency, EPS = earnings per share
2020 targets confirmed: mid to high single digit growth rates
On the basis of the neutral net impact of COVID-19 in the first six months, Fresenius Medical Care continues to expect both revenue and net income to grow at a mid to high single digit rate in 2020. These targets are inclusive of anticipated COVID-19 effects, in constant currency, 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.
Measures to contain COVID-19 continued
Fresenius Medical Care continued its wide-ranging measures to fight COVID-19 in the second quarter. Thanks to the comprehensive protective measures taken at an early stage, Fresenius Medical Care was also able to maintain operations in its more than 4,000 dialysis centers worldwide without significant interruptions and minimizing the impact on patients. This was also made possible thanks to the use of telehealth solutions, which were applied where necessary to replace in-person with virtual patient interactions.
The COVID-19 pandemic affected people with advanced kidney disease and the resulting severity of illness generated an increase in hospitalization and mortality rates. In addition, the pandemic caused an interruption in routine medical visits and necessary hospitalization for many patients with advanced Chronic Kidney Disease (CKD) needing to consider renal
(1) Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
(2) For a reconciliation of adjusted figures, please refer to the table at the end of the press release
(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.
replacement therapy. These two factors impacted the year-on-year growth for the second quarter.
Expansion in home dialysis
The expansion of home dialysis is a major growth area for Fresenius Medical Care. In the second quarter, the home dialysis offering in the Europe, Middle East and Africa (EMEA) region was expanded. The now-completed integration of the NxStage home dialysis products portfolio in the EMEA region enables Fresenius Medical Care to offer even more patients at-home treatment and a wider choice of treatment methods.
In North America, the number of home dialysis treatments increased by 15% compared to Q2 2019, with home hemodialysis treatments growing by 41%. June 2020 was the strongest month on record with regard to the number of patients being trained for home dialysis. This development will be supported by the rollout of additional 100 transitional care units to assist patients transitioning between modalities or returning to dialysis from transplants.
Patients, Clinics and Employees
As of June 30, 2020, Fresenius Medical Care treated 347,683 patients in 4,036 dialysis clinics worldwide. At the end of the second quarter, the Company had 124,736 employees (full-time equivalents) worldwide, compared to 119,631 employees as of June 30, 2019.
Solid revenue and strong income growth
Revenue increased by 5% to EUR 4,557 million (+5% at constant currency), with organic growth of 4%. Health Care Services revenue rose by 5% to EUR 3,614 million (+4% at constant currency), mainly driven by growth in same market treatments and contributions from acquisitions. Health Care Products revenue grew by 6% and amounted to EUR 943 million (+7% at constant currency). This increase was mainly due to higher sales of products for acute care treatments and disposables for in-center dialysis.
In the first half of 2020 revenue rose by 7% to EUR 9,045 million (+6% at constant currency). Organic growth amounted to 4%. Health Care Services revenue grew by 6% to EUR 7,209 million (5% at constant currency). Health Care Products revenue rose by 8% to EUR 1,836 million (+8% at constant currency).
Operating income increased by 26% to EUR 656 million (+24% at constant currency), resulting in an operating income margin of 14.4% (Q2 2019: 12.0%). Based on a strong underlying business performance, the increase in margin was largely due to the recovery of COVID-19 related negative effects experienced in the first quarter as well as ongoing cost saving measures.
Operating income for the first half increased by 14% to EUR 1,211 million (+12% at constant currency), resulting in a margin of 13.4% (H1 2019: 12.5%).
Net income(1) grew by 38% to EUR 351 million (+36% at constant currency). Adjusted net income increased by 40% (+38% at constant currency). Basic earnings per share (EPS) increased by 43% to EUR 1.20 (+41% at constant currency), driven by the earnings effects described above coupled with a decrease in the average weighted shares outstanding.
In the first half of 2020, net income increased by 21% to EUR 634 million (+18% at constant currency). EPS rose by 25% to EUR 2.15 (+22% at constant currency).
Exceptional cash-flow development
Fresenius Medical Care generated EUR 2,319 million of operating cash flow (Q2 2019: EUR 852 million) resulting in a margin of 50.9% (Q2 2019: 19.6%). The increase was largely driven by the U.S. federal government advanced payments under the CARES Act. In the first half of 2020, operating cash flow increased to EUR 2,903 million (H1 2019: EUR 928 million).
Free cash flow (net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 2,103 million (Q2 2019: EUR 559 million), resulting in a margin of 46.1% (Q2 2019: 12.9%). In the first half of 2020, the company generated a free cash flow of EUR 2,407 million (H1 2019: EUR 435 million).
Regional developments
In North America, revenue increased by 6% to EUR 3,240 million (+4% at constant currency, +4% organic). The increase was supported in particular by organic growth in the Dialysis and Care Coordination business and contributions from acquisitions. For the first half, North America revenue rose by 8% to EUR 6,426 million (+5% constant currency, +4% organic).
Operating income grew by 42% to EUR 609 million (39% at constant currency), resulting in a margin of 18.8 % (Q2 2019: 14.0%). Operating income margin increased mainly due to the recovery of COVID-19 related negative effects experienced in the first quarter, ongoing cost saving measures as well as lower costs for renal pharmaceuticals.
For the first half, operating income rose by 34% to EUR 1,073 million (31% at constant currency), resulting in a margin of 16.7% (H1 2019: 13.5%).
EMEA revenue increased by 6% to EUR 687 million (+8% at constant currency, +7% organic), supported by strong organic growth in the Health Care Products business, including higher sales of products for acute care treatment. For the first half, EMEA revenue rose by 5% to EUR 1,366 million (+6% at constant currency, +5% organic).
Operating income for the EMEA region decreased by 19% to EUR 78 million (-19% at constant currency), resulting in a margin of 11.3% (Q2 2019: 14.9%). The decrease in operating margin was mainly due to an unfavorable impact from an impairment of a license held by the joint venture with Vifor Pharma, based on an unfavorable clinical trial for the drug CCX-140. For the first half, operating income decreased by 24% to EUR 179 million (-23% at constant currency), resulting in a margin of 13.1% (H1 2019: 18.0%).
In Asia-Pacific, revenue decreased by 2% to EUR 450 million (-2% at constant currency, -1% organic). The growth was impacted by the effect of closed or sold clinics and a decrease in organic revenue in the Care Coordination business, driven by COVID-19. For the first half, revenue rose by 1% to EUR 893 million (stable at constant currency, +0% organic).
Operating income decreased by 9% to EUR 63 million (-10% at constant currency), resulting in a margin of 14.1% (Q2 2019: 15.1%). The decrease in margin was mainly due to impacts from the COVID-19 pandemic. For the first half, operating income decreased by 15% to EUR 140 million (-15% at constant currency) resulting in a margin of 15.7% (H1 2019: 18.5%).
Latin America revenue decreased by 2% to EUR 170 million (+24% at constant currency, +18% organic). For the first half, revenue rose by 1% to EUR 338 million (+24% constant currency, +17% organic).
Operating income increased by 85% to EUR 11 million (+110% at constant currency), resulting in a margin of 6.4% (Q2 2019: 3.4%). For the first half, operating income increased by 3% to EUR 18 million (+11% at constant currency), resulting in a margin of 5.3% (H1 2019: 5.2%).
Virtual Annual General Meeting
Fresenius Medical Care has postponed its Annual General Meeting to August 27, 2020. With that, the resolutions regarding the allocation of the distributable profit and the payout of the dividend has also been postponed. The proposed dividend remains unchanged at 1.20 per entitled share.
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the second quarter and first half of 2020 on July 30, 2020 at 3:30 p.m. CEDT (UTC +2) / 09:30 a.m. EDT (UTC -4). Details will be available on the companys 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 second quarter and first half of 2020. Our 6-K disclosure provides more details.
Fresenius Medical Care is the worlds 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 4,036 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 347,683 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 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 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. 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.
Statement of earnings
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Three months ended June 30 |
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Change |
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in million, except share data, unaudited |
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2020 |
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2019 |
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Change |
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at cc |
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Health Care Services |
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3,614 |
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3,455 |
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4.6 |
% |
4.0 |
% | ||
Health Care Products |
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943 |
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890 |
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6.0 |
% |
7.5 |
% | ||
Revenue |
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4,557 |
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4,345 |
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4.9 |
% |
4.7 |
% | ||
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Costs of revenue |
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3,121 |
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3,014 |
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3.6 |
% |
3.7 |
% | ||
Gross profit |
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1,436 |
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1,331 |
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7.9 |
% |
7.0 |
% | ||
Selling, general and administrative |
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738 |
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795 |
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-7.2 |
% |
-7.4 |
% | ||
(Gain) loss related to divestitures of Care Coordination activities |
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(5 |
) |
(11 |
) |
-59.7 |
% |
-59.8 |
% | ||
Research and development |
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51 |
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48 |
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4.4 |
% |
3.4 |
% | ||
Income from equity method investees |
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(4 |
) |
(22 |
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-82.6 |
% |
-82.7 |
% | ||
Operating income |
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656 |
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521 |
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25.8 |
% |
24.0 |
% | ||
Operating income adjusted |
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656 |
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517 |
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27.0 |
% |
25.1 |
% | ||
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Interest expense, net |
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92 |
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114 |
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-19.6 |
% |
-19.7 |
% | ||
Income before taxes |
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564 |
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407 |
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38.6 |
% |
36.2 |
% | ||
Income tax expense |
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137 |
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92 |
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48.6 |
% |
46.1 |
% | ||
Net income |
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427 |
|
315 |
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35.7 |
% |
33.3 |
% | ||
Net income attributable to noncontrolling interests |
|
76 |
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61 |
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24.8 |
% |
22.2 |
% | ||
Net income(1) |
|
351 |
|
254 |
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38.3 |
% |
36.0 |
% | ||
Net income(1) adjusted |
|
351 |
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250 |
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40.3 |
% |
37.9 |
% | ||
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Weighted average number of shares |
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292,733,283 |
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303,456,178 |
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Basic earnings per share |
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1.20 |
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0.84 |
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43.4 |
% |
41.0 |
% |
Basic earnings per share adjusted |
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1.20 |
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0.82 |
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45.4 |
% |
43.0 |
% |
In percent of revenue |
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Operating income |
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14.4 |
% |
12.0 |
% |
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Operating income adjusted |
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14.4 |
% |
11.9 |
% |
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(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.
Statement of earnings
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Six months ended June 30 |
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Change |
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in million, except share data, unaudited |
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2020 |
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2019 |
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Change |
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at cc |
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Health Care Services |
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7,209 |
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6,773 |
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6.4 |
% |
5.2 |
% | ||
Health Care Products |
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1,836 |
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1,705 |
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7.7 |
% |
8.3 |
% | ||
Revenue |
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9,045 |
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8,478 |
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6.7 |
% |
5.8 |
% | ||
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Costs of revenue |
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6,198 |
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5,881 |
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5.4 |
% |
4.8 |
% | ||
Gross profit |
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2,847 |
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2,597 |
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9.7 |
% |
8.2 |
% | ||
Selling, general and administrative |
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1,593 |
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1,516 |
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5.1 |
% |
4.2 |
% | ||
(Gain) loss related to divestitures of Care Coordination activities |
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(29 |
) |
(11 |
) |
153.7 |
% |
147.9 |
% | ||
Research and development |
|
96 |
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77 |
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25.3 |
% |
23.8 |
% | ||
Income from equity method investees |
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(24 |
) |
(43 |
) |
-42.8 |
% |
-42.9 |
% | ||
Operating income |
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1,211 |
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1,058 |
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14.5 |
% |
12.4 |
% | ||
Operating income adjusted |
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1,211 |
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1,074 |
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12.8 |
% |
10.8 |
% | ||
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Interest expense, net |
|
196 |
|
222 |
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-11.7 |
% |
-12.5 |
% | ||
Income before taxes |
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1,015 |
|
836 |
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21.5 |
% |
19.0 |
% | ||
Income tax expense |
|
237 |
|
193 |
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23.0 |
% |
20.5 |
% | ||
Net income |
|
778 |
|
643 |
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21.0 |
% |
18.5 |
% | ||
Net income attributable to noncontrolling interests |
|
144 |
|
118 |
|
21.8 |
% |
18.8 |
% | ||
Net income(1) |
|
634 |
|
525 |
|
20.8 |
% |
18.5 |
% | ||
Net income(1) adjusted |
|
634 |
|
536 |
|
18.3 |
% |
16.0 |
% | ||
|
|
|
|
|
|
|
|
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Weighted average number of shares |
|
295,287,813 |
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305,048,922 |
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|
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|
|
|
|
|
|
|
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Basic earnings per share |
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|
2.15 |
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|
1.72 |
|
24.8 |
% |
22.4 |
% |
Basic earnings per share adjusted |
|
|
2.15 |
|
|
1.76 |
|
22.2 |
% |
19.8 |
% |
|
|
|
|
|
|
|
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In percent of revenue |
|
|
|
|
|
|
|
|
| ||
Operating income |
|
13.4 |
% |
12.5 |
% |
|
|
|
| ||
Operating income adjusted |
|
13.4 |
% |
12.7 |
% |
|
|
|
|
(1) Attributable to shareholders of FMC-AG & Co. KGaA
For a reconciliation of adjusted figures, please refer to the table at the end of the press release.
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||
in million, unaudited |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Operating performance on an adjusted basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
4,557 |
|
4,345 |
|
9,045 |
|
8,478 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
656 |
|
521 |
|
1,211 |
|
1,058 |
|
NxStage costs |
|
|
|
4 |
|
|
|
20 |
|
Cost optimization costs |
|
|
|
3 |
|
|
|
7 |
|
(Gain) loss related to divestitures of Care Coordination activities |
|
|
|
(11 |
) |
|
|
(11 |
) |
Operating income adjusted |
|
656 |
|
517 |
|
1,211 |
|
1,074 |
|
|
|
|
|
|
|
|
|
|
|
Net income(1) |
|
351 |
|
254 |
|
634 |
|
525 |
|
NxStage costs |
|
|
|
3 |
|
|
|
15 |
|
Cost optimization costs |
|
|
|
2 |
|
|
|
5 |
|
(Gain) loss related to divestitures of Care Coordination activities |
|
|
|
(9 |
) |
|
|
(9 |
) |
Net income(1) adjusted |
|
351 |
|
250 |
|
634 |
|
536 |
|
(1) Attributable to shareholders of FMC-AG & Co. KGaA
Exhibit 99.2
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE SECOND QUARTER AND
FIRST HALF YEAR 2020
July 30, 2020
Investor Relations
phone: +49 6172 609 2525
email: ir@fmc-ag.com
Content: |
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|
|
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. 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
July 30, 2020
Statement of earnings
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||||||||||||||
in million, except share data, unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
Change |
| ||||
Health Care Services |
|
3,614 |
|
3,455 |
|
4.6 |
% |
4.0 |
% |
7,209 |
|
6,773 |
|
6.4 |
% |
5.2 |
% | ||||
Health Care Products |
|
943 |
|
890 |
|
6.0 |
% |
7.5 |
% |
1,836 |
|
1,705 |
|
7.7 |
% |
8.3 |
% | ||||
Total revenue |
|
4,557 |
|
4,345 |
|
4.9 |
% |
4.7 |
% |
9,045 |
|
8,478 |
|
6.7 |
% |
5.8 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Costs of revenue |
|
3,121 |
|
3,014 |
|
3.6 |
% |
3.7 |
% |
6,198 |
|
5,881 |
|
5.4 |
% |
4.8 |
% | ||||
Gross profit |
|
1,436 |
|
1,331 |
|
7.9 |
% |
7.0 |
% |
2,847 |
|
2,597 |
|
9.7 |
% |
8.2 |
% | ||||
Selling, general and administrative |
|
738 |
|
795 |
|
-7.2 |
% |
-7.4 |
% |
1,593 |
|
1,516 |
|
5.1 |
% |
4.2 |
% | ||||
(Gain) loss related to divestitures of Care Coordination activities |
|
(5 |
) |
(11 |
) |
-59.7 |
% |
-59.8 |
% |
(29 |
) |
(11 |
) |
153.7 |
% |
147.9 |
% | ||||
Research and development |
|
51 |
|
48 |
|
4.4 |
% |
3.4 |
% |
96 |
|
77 |
|
25.3 |
% |
23.8 |
% | ||||
Income from equity method investees |
|
(4 |
) |
(22 |
) |
-82.6 |
% |
-82.7 |
% |
(24 |
) |
(43 |
) |
-42.8 |
% |
-42.9 |
% | ||||
Operating income |
|
656 |
|
521 |
|
25.8 |
% |
24.0 |
% |
1,211 |
|
1,058 |
|
14.5 |
% |
12.4 |
% | ||||
Operating income margin in % |
|
14.4 |
% |
12.0 |
% |
|
|
|
|
13.4 |
% |
12.5 |
% |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest income |
|
(11 |
) |
2 |
|
n.a. |
|
n.a. |
|
(20 |
) |
(26 |
) |
-23.0 |
% |
-22.0 |
% | ||||
Interest expense |
|
103 |
|
112 |
|
-8.2 |
% |
-8.2 |
% |
216 |
|
248 |
|
-12.9 |
% |
-13.5 |
% | ||||
Interest expense, net |
|
92 |
|
114 |
|
-19.6 |
% |
-19.7 |
% |
196 |
|
222 |
|
-11.7 |
% |
-12.5 |
% | ||||
Income before taxes |
|
564 |
|
407 |
|
38.6 |
% |
36.2 |
% |
1,015 |
|
836 |
|
21.5 |
% |
19.0 |
% | ||||
Income tax expense |
|
137 |
|
92 |
|
48.6 |
% |
46.1 |
% |
237 |
|
193 |
|
23.0 |
% |
20.5 |
% | ||||
Net income |
|
427 |
|
315 |
|
35.7 |
% |
33.3 |
% |
778 |
|
643 |
|
21.0 |
% |
18.5 |
% | ||||
Net income attributable to noncontrolling interests |
|
76 |
|
61 |
|
24.8 |
% |
22.2 |
% |
144 |
|
118 |
|
21.8 |
% |
18.8 |
% | ||||
Net income attributable to shareholders of FMC-AG & Co. KGaA |
|
351 |
|
254 |
|
38.3 |
% |
36.0 |
% |
634 |
|
525 |
|
20.8 |
% |
18.5 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income |
|
656 |
|
521 |
|
25.8 |
% |
24.0 |
% |
1,211 |
|
1,058 |
|
14.5 |
% |
12.4 |
% | ||||
Depreciation, amortization and impairment loss |
|
410 |
|
387 |
|
6.0 |
% |
5.3 |
% |
811 |
|
749 |
|
8.2 |
% |
6.9 |
% | ||||
EBITDA |
|
1,066 |
|
908 |
|
17.4 |
% |
16.0 |
% |
2,022 |
|
1,807 |
|
11.9 |
% |
10.1 |
% | ||||
EBITDA margin in % |
|
23.4 |
% |
20.9 |
% |
|
|
|
|
22.4 |
% |
21.3 |
% |
|
|
|
| ||||
Weighted average number of shares |
|
292,733,283 |
|
303,456,178 |
|
|
|
|
|
295,287,813 |
|
305,048,922 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
|
|
1.20 |
|
|
0.84 |
|
43.4 |
% |
41.0 |
% |
|
2.15 |
|
|
1.72 |
|
24.8 |
% |
22.4 |
% |
Basic earnings per ADS |
|
|
0.60 |
|
|
0.42 |
|
43.4 |
% |
41.0 |
% |
|
1.07 |
|
|
0.86 |
|
24.8 |
% |
22.4 |
% |
Statement of earnings
Segment information
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||||||||||
unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
4,557 |
|
4,345 |
|
4.9 |
% |
4.7 |
% |
9,045 |
|
8,478 |
|
6.7 |
% |
5.8 |
% |
Operating income in million |
|
656 |
|
521 |
|
25.8 |
% |
24.0 |
% |
1,211 |
|
1,058 |
|
14.5 |
% |
12.4 |
% |
Operating income margin in % |
|
14.4 |
% |
12.0 |
% |
|
|
|
|
13.4 |
% |
12.5 |
% |
|
|
|
|
Delivered Operating Income in million |
|
580 |
|
460 |
|
26.0 |
% |
24.2 |
% |
1,067 |
|
940 |
|
13.6 |
% |
11.6 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
|
|
53 |
|
77 |
|
|
|
|
|
Employees (full-time equivalents) |
|
|
|
|
|
|
|
|
|
124,736 |
|
119,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
3,240 |
|
3,061 |
|
5.8 |
% |
3.7 |
% |
6,426 |
|
5,948 |
|
8.0 |
% |
5.4 |
% |
Operating income in million |
|
609 |
|
429 |
|
42.1 |
% |
39.3 |
% |
1,073 |
|
801 |
|
33.9 |
% |
30.9 |
% |
Operating income margin in % |
|
18.8 |
% |
14.0 |
% |
|
|
|
|
16.7 |
% |
13.5 |
% |
|
|
|
|
Delivered Operating Income in million |
|
535 |
|
372 |
|
44.1 |
% |
41.3 |
% |
934 |
|
690 |
|
35.2 |
% |
32.2 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
|
|
30 |
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
687 |
|
648 |
|
6.0 |
% |
8.0 |
% |
1,366 |
|
1,301 |
|
5.0 |
% |
6.1 |
% |
Operating income in million |
|
78 |
|
96 |
|
-19.5 |
% |
-18.6 |
% |
179 |
|
235 |
|
-23.7 |
% |
-23.3 |
% |
Operating income margin in % |
|
11.3 |
% |
14.9 |
% |
|
|
|
|
13.1 |
% |
18.0 |
% |
|
|
|
|
Delivered Operating Income in million |
|
77 |
|
94 |
|
-19.1 |
% |
-18.3 |
% |
177 |
|
232 |
|
-23.4 |
% |
-23.1 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
|
|
92 |
|
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
450 |
|
458 |
|
-1.7 |
% |
-1.8 |
% |
893 |
|
886 |
|
0.9 |
% |
0.3 |
% |
Operating income in million |
|
63 |
|
69 |
|
-8.7 |
% |
-9.5 |
% |
140 |
|
164 |
|
-14.6 |
% |
-15.3 |
% |
Operating income margin in % |
|
14.1 |
% |
15.1 |
% |
|
|
|
|
15.7 |
% |
18.5 |
% |
|
|
|
|
Delivered Operating Income in million |
|
62 |
|
67 |
|
-7.4 |
% |
-8.1 |
% |
137 |
|
160 |
|
-14.1 |
% |
-14.7 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
|
|
113 |
|
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
170 |
|
172 |
|
-1.6 |
% |
23.9 |
% |
338 |
|
334 |
|
1.1 |
% |
24.2 |
% |
Operating income in million |
|
11 |
|
6 |
|
85.5 |
% |
110.0 |
% |
18 |
|
17 |
|
2.9 |
% |
11.4 |
% |
Operating income margin in % |
|
6.4 |
% |
3.4 |
% |
|
|
|
|
5.3 |
% |
5.2 |
% |
|
|
|
|
Delivered Operating Income in million |
|
11 |
|
6 |
|
83.7 |
% |
107.5 |
% |
18 |
|
17 |
|
3.4 |
% |
11.8 |
% |
Days sales outstanding (DSO) |
|
|
|
|
|
|
|
|
|
139 |
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
10 |
|
6 |
|
98.8 |
% |
96.2 |
% |
22 |
|
9 |
|
137.3 |
% |
133.6 |
% |
Operating income in million |
|
(105 |
) |
(79 |
) |
32.9 |
% |
32.5 |
% |
(199 |
) |
(159 |
) |
24.8 |
% |
24.3 |
% |
Delivered Operating Income in million |
|
(105 |
) |
(79 |
) |
33.0 |
% |
32.6 |
% |
(199 |
) |
(159 |
) |
24.9 |
% |
24.4 |
% |
Segment information
Balance sheet
|
|
June 30 |
|
December 31 |
|
in million, except for net leverage ratio, unaudited |
|
2020 |
|
2019 |
|
Assets |
|
|
|
|
|
Current assets |
|
8,182 |
|
7,165 |
|
Goodwill and intangible assets |
|
15,508 |
|
15,444 |
|
Right of use assets |
|
4,428 |
|
4,325 |
|
Other non-current assets |
|
6,072 |
|
6,001 |
|
Total assets |
|
34,190 |
|
32,935 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
8,064 |
|
7,059 |
|
Non-current liabilities |
|
12,803 |
|
12,649 |
|
Total equity |
|
13,323 |
|
13,227 |
|
Total liabilities and equity |
|
34,190 |
|
32,935 |
|
|
|
|
|
|
|
Equity/assets ratio |
|
39 |
% |
40 |
% |
|
|
|
|
|
|
Debt and lease liabilities |
|
|
|
|
|
Short-term debt |
|
876 |
|
1,150 |
|
Short-term debt from related parties |
|
3 |
|
22 |
|
Current portion of long-term debt |
|
1,513 |
|
1,447 |
|
Current portion of long-term lease liabilities |
|
622 |
|
622 |
|
Current portion of long-term lease liabilities from related parties |
|
21 |
|
17 |
|
Long-term debt, less current portion |
|
6,274 |
|
6,458 |
|
Long-term lease liabilities, less current portion |
|
4,039 |
|
3,960 |
|
Long-term lease liabilities from related parties, less current portion |
|
130 |
|
106 |
|
Total debt and lease liabilities |
|
13,478 |
|
13,782 |
|
Minus: Cash and cash equivalents (1) |
|
(1,889 |
) |
(1,008 |
) |
Total net debt and lease liabilities |
|
11,589 |
|
12,774 |
|
|
|
|
|
|
|
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures |
|
|
|
|
|
Net income |
|
1,574 |
|
1,439 |
|
Income tax expense |
|
446 |
|
402 |
|
Interest income |
|
(56 |
) |
(62 |
) |
Interest expense |
|
459 |
|
491 |
|
Depreciation and amortization |
|
1,608 |
|
1,553 |
|
Adjustments (2) |
|
97 |
|
110 |
|
Annualized adjusted EBITDA |
|
4,128 |
|
3,933 |
|
|
|
|
|
|
|
Net leverage ratio |
|
2.8 |
|
3.2 |
|
(1) The increase in cash and cash equivalents as of June 30, 2020 was primarily related to federal relief funding and advanced payments under the CARES Act and other COVID-19 relief.
Balance sheet
Cash flow statement
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||
in million, unaudited |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net income |
|
427 |
|
315 |
|
778 |
|
643 |
|
Depreciation / amortization / impairment loss |
|
410 |
|
387 |
|
811 |
|
749 |
|
Change in working capital and other non-cash items |
|
1,482 |
|
150 |
|
1,314 |
|
(464 |
) |
Net cash provided by (used in) operating activities |
|
2,319 |
|
852 |
|
2,903 |
|
928 |
|
In percent of revenue |
|
50.9 |
% |
19.6 |
% |
32.1 |
% |
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(218 |
) |
(296 |
) |
(500 |
) |
(497 |
) |
Proceeds from sale of property, plant and equipment |
|
2 |
|
3 |
|
4 |
|
4 |
|
Capital expenditures, net |
|
(216 |
) |
(293 |
) |
(496 |
) |
(493 |
) |
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
2,103 |
|
559 |
|
2,407 |
|
435 |
|
In percent of revenue |
|
46.1 |
% |
12.9 |
% |
26.6 |
% |
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
Acquisitions and investments, net of cash acquired, and purchases of intangible assets |
|
(69 |
) |
(94 |
) |
(108 |
) |
(1,923 |
) |
Proceeds from divestitures |
|
5 |
|
11 |
|
11 |
|
23 |
|
Acquisitions and investments, net of divestitures |
|
(64 |
) |
(83 |
) |
(97 |
) |
(1,900 |
) |
Free cash flow after investing activities |
|
2,039 |
|
476 |
|
2,310 |
|
(1,465 |
) |
Cash flow
Revenue development
|
|
|
|
|
|
|
|
|
|
|
|
Same |
|
|
|
|
|
|
|
|
|
|
|
|
|
market |
|
|
|
|
|
|
|
|
|
Change |
|
Organic |
|
treatment |
|
in million, unaudited |
|
2020 |
|
2019 |
|
Change |
|
at cc |
|
growth |
|
growth(1) |
|
Three months ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
4,557 |
|
4,345 |
|
4.9 |
% |
4.7 |
% |
4.4 |
% |
|
|
Health Care Services |
|
3,614 |
|
3,455 |
|
4.6 |
% |
4.0 |
% |
3.8 |
% |
2.4 |
% |
Thereof Dialysis Care revenue |
|
3,224 |
|
3,120 |
|
3.3 |
% |
2.8 |
% |
2.2 |
% |
2.4 |
% |
Thereof Care Coordination revenue |
|
390 |
|
335 |
|
16.4 |
% |
14.4 |
% |
19.9 |
% |
|
|
Health Care Products |
|
943 |
|
890 |
|
6.0 |
% |
7.5 |
% |
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
3,240 |
|
3,061 |
|
5.8 |
% |
3.7 |
% |
3.7 |
% |
|
|
Health Care Services |
|
2,951 |
|
2,789 |
|
5.8 |
% |
3.7 |
% |
3.7 |
% |
1.8 |
%(2) |
Thereof Dialysis Care revenue |
|
2,602 |
|
2,511 |
|
3.6 |
% |
1.6 |
% |
0.8 |
% |
1.8 |
%(2) |
Thereof Care Coordination revenue |
|
349 |
|
278 |
|
25.5 |
% |
23.0 |
% |
31.8 |
% |
|
|
Health Care Products |
|
289 |
|
272 |
|
6.2 |
% |
4.0 |
% |
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
687 |
|
648 |
|
6.0 |
% |
8.0 |
% |
6.9 |
% |
|
|
Health Care Services |
|
341 |
|
335 |
|
1.7 |
% |
4.5 |
% |
4.2 |
% |
3.3 |
% |
Health Care Products |
|
346 |
|
313 |
|
10.6 |
% |
11.8 |
% |
9.9 |
% |
|
|
Thereof Dialysis Products |
|
324 |
|
296 |
|
9.5 |
% |
10.8 |
% |
8.7 |
% |
|
|
Thereof Non-Dialysis Products |
|
22 |
|
17 |
|
28.8 |
% |
29.2 |
% |
29.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
450 |
|
458 |
|
-1.7 |
% |
-1.8 |
% |
-0.7 |
% |
|
|
Health Care Services |
|
196 |
|
210 |
|
-6.8 |
% |
-8.8 |
% |
-6.5 |
% |
1.2 |
% |
Thereof Dialysis Care revenue |
|
155 |
|
153 |
|
1.1 |
% |
-1.9 |
% |
4.0 |
% |
1.2 |
% |
Thereof Care Coordination revenue |
|
41 |
|
57 |
|
-28.0 |
% |
-27.4 |
% |
-33.4 |
% |
|
|
Health Care Products |
|
254 |
|
248 |
|
2.6 |
% |
4.1 |
% |
4.0 |
% |
|
|
Thereof Dialysis Products |
|
254 |
|
248 |
|
2.5 |
% |
3.9 |
% |
3.8 |
% |
|
|
Thereof Non-Dialysis Products |
|
0 |
|
|
|
n.a. |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
170 |
|
172 |
|
-1.6 |
% |
23.9 |
% |
17.6 |
% |
|
|
Health Care Services |
|
119 |
|
121 |
|
-1.1 |
% |
25.9 |
% |
17.8 |
% |
3.6 |
% |
Health Care Products |
|
51 |
|
51 |
|
-3.0 |
% |
19.2 |
% |
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
10 |
|
6 |
|
98.8 |
% |
96.2 |
% |
|
|
|
|
Health Care Services |
|
7 |
|
|
|
n.a. |
|
n.a. |
|
|
|
|
|
Health Care Products |
|
3 |
|
6 |
|
-23.9 |
% |
-24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
9,045 |
|
8,478 |
|
6.7 |
% |
5.8 |
% |
4.2 |
% |
|
|
Health Care Services |
|
7,209 |
|
6,773 |
|
6.4 |
% |
5.2 |
% |
3.9 |
% |
2.8 |
% |
Thereof Dialysis Care revenue |
|
6,422 |
|
6,078 |
|
5.7 |
% |
4.6 |
% |
2.9 |
% |
2.8 |
% |
Thereof Care Coordination revenue |
|
787 |
|
695 |
|
13.2 |
% |
10.8 |
% |
13.5 |
% |
|
|
Health Care Products |
|
1,836 |
|
1,705 |
|
7.7 |
% |
8.3 |
% |
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
6,426 |
|
5,948 |
|
8.0 |
% |
5.4 |
% |
3.6 |
% |
|
|
Health Care Services |
|
5,859 |
|
5,469 |
|
7.1 |
% |
4.5 |
% |
3.3 |
% |
2.4 |
%(2) |
Thereof Dialysis Care revenue |
|
5,173 |
|
4,883 |
|
5.9 |
% |
3.3 |
% |
1.5 |
% |
2.4 |
%(2) |
Thereof Care Coordination revenue |
|
686 |
|
586 |
|
17.0 |
% |
14.1 |
% |
19.0 |
% |
|
|
Health Care Products |
|
567 |
|
479 |
|
18.4 |
% |
15.5 |
% |
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
1,366 |
|
1,301 |
|
5.0 |
% |
6.1 |
% |
5.0 |
% |
|
|
Health Care Services |
|
682 |
|
659 |
|
3.5 |
% |
5.0 |
% |
4.3 |
% |
2.8 |
% |
Health Care Products |
|
684 |
|
642 |
|
6.6 |
% |
7.1 |
% |
5.7 |
% |
|
|
Thereof Dialysis Products |
|
638 |
|
606 |
|
5.3 |
% |
5.8 |
% |
4.3 |
% |
|
|
Thereof Non-Dialysis Products |
|
46 |
|
36 |
|
28.8 |
% |
29.0 |
% |
29.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
893 |
|
886 |
|
0.9 |
% |
0.3 |
% |
0.4 |
% |
|
|
Health Care Services |
|
414 |
|
409 |
|
1.2 |
% |
-0.8 |
% |
-0.5 |
% |
2.9 |
% |
Thereof Dialysis Care revenue |
|
313 |
|
300 |
|
4.4 |
% |
1.3 |
% |
4.8 |
% |
2.9 |
% |
Thereof Care Coordination revenue |
|
101 |
|
109 |
|
-7.5 |
% |
-6.8 |
% |
-14.1 |
% |
|
|
Health Care Products |
|
479 |
|
477 |
|
0.5 |
% |
1.3 |
% |
1.2 |
% |
|
|
Thereof Dialysis Products |
|
474 |
|
477 |
|
-0.5 |
% |
0.3 |
% |
0.1 |
% |
|
|
Thereof Non-Dialysis Products |
|
5 |
|
|
|
n.a. |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
338 |
|
334 |
|
1.1 |
% |
24.2 |
% |
17.3 |
% |
|
|
Health Care Services |
|
240 |
|
236 |
|
1.9 |
% |
27.2 |
% |
18.7 |
% |
4.2 |
% |
Health Care Products |
|
98 |
|
98 |
|
-0.7 |
% |
16.9 |
% |
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
22 |
|
9 |
|
137.3 |
% |
133.6 |
% |
|
|
|
|
Health Care Services |
|
14 |
|
|
|
n.a. |
|
n.a. |
|
|
|
|
|
Health Care Products |
|
8 |
|
9 |
|
-6.1 |
% |
-6.3 |
% |
|
|
|
|
(1) same market treatment growth = organic growth less price effects
(2) U.S. (excl. Mexico), same market treatment growth North America: 2.1% for the three months and 2.6% for the six months ended June 30, 2020.
Revenue development
Key metrics North America segment
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||||||||||
unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
Dialysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
2,891 |
|
2,783 |
|
3.9 |
% |
1.8 |
% |
5,740 |
|
5,362 |
|
7.1 |
% |
4.4 |
% |
Operating income in million |
|
567 |
|
428 |
|
32.5 |
% |
30.0 |
% |
984 |
|
760 |
|
29.3 |
% |
26.4 |
% |
Operating income margin in % |
|
19.6 |
% |
15.4 |
% |
|
|
|
|
17.1 |
% |
14.2 |
% |
|
|
|
|
Delivered Operating income in million |
|
503 |
|
373 |
|
35.0 |
% |
32.4 |
% |
863 |
|
657 |
|
31.2 |
% |
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue in million |
|
349 |
|
278 |
|
25.5 |
% |
23.0 |
% |
686 |
|
586 |
|
17.0 |
% |
14.1 |
% |
Operating income in million |
|
42 |
|
1 |
|
n.a. |
|
n.a. |
|
89 |
|
41 |
|
119.2 |
% |
114.0 |
% |
Operating income margin in % |
|
12.0 |
% |
0.3 |
% |
|
|
|
|
13.0 |
% |
6.9 |
% |
|
|
|
|
Delivered Operating income in million |
|
32 |
|
(1 |
) |
n.a. |
|
n.a. |
|
71 |
|
33 |
|
116.5 |
% |
111.3 |
% |
Key metrics Dialysis Care Services
|
|
Six months ended June 30 |
| ||||||||||||
unaudited |
|
Clinics |
|
Growth |
|
De novos |
|
Patients |
|
Growth |
|
Treatments |
|
Growth |
|
Total |
|
4,036 |
|
1 |
% |
60 |
|
347,683 |
|
2 |
% |
26,526,147 |
|
4 |
% |
North America |
|
2,614 |
|
1 |
% |
33 |
|
212,149 |
|
2 |
% |
16,303,730 |
|
4 |
% |
EMEA |
|
797 |
|
2 |
% |
13 |
|
67,220 |
|
2 |
% |
5,056,261 |
|
2 |
% |
Asia-Pacific |
|
380 |
|
-5 |
% |
11 |
|
31,893 |
|
0 |
% |
2,284,425 |
|
2 |
% |
Latin America |
|
245 |
|
6 |
% |
3 |
|
36,421 |
|
8 |
% |
2,881,731 |
|
11 |
% |
Key metrics Care Coordination
|
|
Six months ended June 30 |
| ||||||
unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
North America |
|
|
|
|
|
|
|
|
|
Member months under medical cost management(1) |
|
345,675 |
|
336,256 |
|
2.8 |
% |
|
|
Medical cost under management (in million)(1) |
|
2,259 |
|
2,174 |
|
3.9 |
% |
1.4 |
% |
Care Coordination patient encounters |
|
384,017 |
|
550,233 |
|
-30.2 |
% |
|
|
(1) Data presented for the ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.
Key metrics
Quality data(1)
|
|
North America |
|
EMEA |
|
Latin America |
|
Asia-Pacific |
| ||||||||
in % of patients |
|
Q2 2020 |
|
Q2 2019 |
|
Q2 2020 |
|
Q2 2019 |
|
Q2 2020 |
|
Q2 2019 |
|
Q2 2020 |
|
Q2 2019 |
|
Kt/V > 1.2 |
|
97 |
|
97 |
|
93 |
|
94 |
|
90 |
|
90 |
|
94 |
|
96 |
|
Hemoglobin = 10-12 g/dl |
|
73 |
|
71 |
|
82 |
|
82 |
|
46 |
|
49 |
|
52 |
|
56 |
|
Calcium = 8.4-10.2 mg/dl |
|
81 |
|
83 |
|
77 |
|
79 |
|
75 |
|
76 |
|
72 |
|
73 |
|
Albumin > 3.5 g/dl(1) |
|
80 |
|
80 |
|
89 |
|
89 |
|
90 |
|
92 |
|
89 |
|
90 |
|
Phosphate < 5.5 mg/dl |
|
57 |
|
60 |
|
77 |
|
79 |
|
77 |
|
76 |
|
65 |
|
64 |
|
Patients without catheter (after 90 days) |
|
80 |
|
82 |
|
77 |
|
79 |
|
79 |
|
80 |
|
81 |
|
85 |
|
in days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days in hospital per patient year |
|
9.8 |
|
11.0 |
|
7.3 |
|
7.9 |
|
3.9 |
|
4.2 |
|
2.6 |
|
2.7 |
|
(1) Definitions cf. Annual Report 2019, Section Non-Financial Group Report
Quality data
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
Three months ended June 30 |
|
Six months ended June 30 |
| ||||
in million, unaudited |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Delivered Operating Income reconciliation |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
Operating income |
|
656 |
|
521 |
|
1,211 |
|
1,058 |
|
less noncontrolling interests |
|
(76 |
) |
(61 |
) |
(144 |
) |
(118 |
) |
Delivered Operating Income |
|
580 |
|
460 |
|
1,067 |
|
940 |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Operating income |
|
609 |
|
429 |
|
1,073 |
|
801 |
|
less noncontrolling interests |
|
(74 |
) |
(57 |
) |
(139 |
) |
(111 |
) |
Delivered Operating Income |
|
535 |
|
372 |
|
934 |
|
690 |
|
|
|
|
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
|
|
|
|
Operating income |
|
567 |
|
428 |
|
984 |
|
760 |
|
less noncontrolling interests |
|
(64 |
) |
(55 |
) |
(121 |
) |
(103 |
) |
Delivered Operating Income |
|
503 |
|
373 |
|
863 |
|
657 |
|
|
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
|
|
|
Operating income |
|
42 |
|
1 |
|
89 |
|
41 |
|
less noncontrolling interests |
|
(10 |
) |
(2 |
) |
(18 |
) |
(8 |
) |
Delivered Operating Income |
|
32 |
|
(1 |
) |
71 |
|
33 |
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
|
|
|
|
|
|
|
|
Operating income |
|
78 |
|
96 |
|
179 |
|
235 |
|
less noncontrolling interests |
|
(1 |
) |
(2 |
) |
(2 |
) |
(3 |
) |
Delivered Operating Income |
|
77 |
|
94 |
|
177 |
|
232 |
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
|
|
|
|
Operating income |
|
63 |
|
69 |
|
140 |
|
164 |
|
less noncontrolling interests |
|
(1 |
) |
(2 |
) |
(3 |
) |
(4 |
) |
Delivered Operating Income |
|
62 |
|
67 |
|
137 |
|
160 |
|
|
|
|
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
|
|
|
|
Operating income |
|
70 |
|
64 |
|
144 |
|
154 |
|
less noncontrolling interests |
|
(2 |
) |
(1 |
) |
(3 |
) |
(4 |
) |
Delivered Operating Income |
|
68 |
|
63 |
|
141 |
|
150 |
|
|
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
|
|
|
Operating income |
|
(7 |
) |
5 |
|
(4 |
) |
10 |
|
less noncontrolling interests |
|
1 |
|
(1 |
) |
0 |
|
0 |
|
Delivered Operating Income |
|
(6 |
) |
4 |
|
(4 |
) |
10 |
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
Operating income |
|
11 |
|
6 |
|
18 |
|
17 |
|
less noncontrolling interests |
|
0 |
|
0 |
|
0 |
|
0 |
|
Delivered Operating Income |
|
11 |
|
6 |
|
18 |
|
17 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Operating income |
|
(105 |
) |
(79 |
) |
(199 |
) |
(159 |
) |
less noncontrolling interests |
|
0 |
|
0 |
|
0 |
|
0 |
|
Delivered Operating Income |
|
(105 |
) |
(79 |
) |
(199 |
) |
(159 |
) |
Reconciliation
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
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(Gain) loss related |
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Change |
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Cost |
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to divestitures of |
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Results |
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Change |
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(adjusted |
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Results |
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Results |
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NxStage |
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optimization |
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Care Coordination |
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2019 |
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(adjusted |
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results) |
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in million, except share data, unaudited |
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2020 |
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2019 |
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costs |
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costs |
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activities |
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adjusted |
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results) |
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at cc |
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Three months ended June 30 |
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Total revenue |
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4,557 |
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4,345 |
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4,345 |
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4.9 |
% |
4.7 |
% | ||||||
EBITDA |
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1,066 |
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908 |
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4 |
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3 |
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(11 |
) |
904 |
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18.0 |
% |
16.6 |
% | ||||||
Total operating income |
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656 |
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521 |
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4 |
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3 |
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(11 |
) |
517 |
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27.0 |
% |
25.1 |
% | ||||||
North America |
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609 |
|
429 |
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4 |
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3 |
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(11 |
) |
425 |
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43.7 |
% |
40.9 |
% | ||||||
Dialysis |
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567 |
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428 |
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4 |
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3 |
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435 |
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30.5 |
% |
28.0 |
% | ||||||
Care Coordination |
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42 |
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1 |
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(11 |
) |
(10 |
) |
n.a. |
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n.a. |
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EMEA |
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78 |
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96 |
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96 |
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-19.5 |
% |
-18.6 |
% | ||||||
Asia-Pacific |
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63 |
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69 |
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69 |
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-8.7 |
% |
-9.5 |
% | ||||||
Dialysis |
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70 |
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64 |
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64 |
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8.0 |
% |
6.5 |
% | ||||||
Care Coordination |
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(7 |
) |
5 |
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5 |
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n.a. |
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n.a. |
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Latin America |
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11 |
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6 |
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6 |
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85.5 |
% |
110.0 |
% | ||||||
Corporate |
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(105 |
) |
(79 |
) |
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0 |
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(79 |
) |
33.1 |
% |
32.7 |
% | ||||||
Interest expense, net |
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92 |
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114 |
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114 |
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-19.6 |
% |
-19.7 |
% | ||||||
Income tax expense |
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137 |
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92 |
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1 |
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1 |
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(2 |
) |
92 |
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50.3 |
% |
47.8 |
% | ||||||
Net income attributable to noncontrolling interests |
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76 |
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61 |
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61 |
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24.8 |
% |
22.2 |
% | ||||||
Net income(1) |
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351 |
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254 |
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3 |
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2 |
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(9 |
) |
250 |
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40.3 |
% |
37.9 |
% | ||||||
Basic earnings per share |
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1.20 |
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0.84 |
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0.01 |
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0.00 |
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(0.03 |
) |
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0.82 |
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45.4 |
% |
43.0 |
% |
Six months ended June 30 |
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Total revenue |
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9,045 |
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8,478 |
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8,478 |
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6.7 |
% |
5.8 |
% | ||||||
EBITDA |
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2,022 |
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1,807 |
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20 |
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7 |
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(11 |
) |
1,823 |
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10.9 |
% |
9.2 |
% | ||||||
Total operating income |
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1,211 |
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1,058 |
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20 |
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7 |
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(11 |
) |
1,074 |
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12.8 |
% |
10.8 |
% | ||||||
North America |
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1,073 |
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801 |
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20 |
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7 |
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(11 |
) |
817 |
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31.4 |
% |
28.4 |
% | ||||||
Dialysis |
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984 |
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760 |
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20 |
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7 |
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787 |
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25.0 |
% |
22.2 |
% | ||||||
Care Coordination |
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89 |
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41 |
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(11 |
) |
30 |
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204.7 |
% |
197.4 |
% | ||||||
EMEA |
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179 |
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235 |
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235 |
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-23.7 |
% |
-23.3 |
% | ||||||
Asia-Pacific |
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140 |
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164 |
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164 |
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-14.6 |
% |
-15.3 |
% | ||||||
Dialysis |
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144 |
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154 |
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154 |
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-5.8 |
% |
-7.0 |
% | ||||||
Care Coordination |
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(4 |
) |
10 |
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10 |
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n.a. |
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n.a. |
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Latin America |
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18 |
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17 |
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17 |
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2.9 |
% |
11.4 |
% | ||||||
Corporate |
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(199 |
) |
(159 |
) |
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0 |
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(159 |
) |
25.0 |
% |
24.5 |
% | ||||||
Interest expense, net |
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196 |
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222 |
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222 |
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-11.7 |
% |
-12.5 |
% | ||||||
Income tax expense |
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237 |
|
193 |
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5 |
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2 |
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(2 |
) |
198 |
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20.4 |
% |
18.0 |
% | ||||||
Net income attributable to noncontrolling interests |
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144 |
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118 |
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118 |
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21.8 |
% |
18.8 |
% | ||||||
Net income(1) |
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634 |
|
525 |
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15 |
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5 |
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(9 |
) |
536 |
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18.3 |
% |
16.0 |
% | ||||||
Basic earnings per share |
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2.15 |
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1.72 |
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0.05 |
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0.02 |
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(0.03 |
) |
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1.76 |
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22.2 |
% |
19.8 |
% |
(1) Attributable to shareholders of FMC-AG & Co. KGaA
Outlook 2020
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Outlook 2020 |
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Results 2019 |
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(at Constant Currency) |
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Revenue(1) |
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17,477 M |
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mid to high single digit growth rate |
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Operating income(1) |
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2,356 M |
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mid to high single digit growth rate |
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Delivered Operating Income(1) |
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2,117 M |
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mid to high single digit growth rate |
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Net income(1),(2) |
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1,236 M |
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mid to high single digit growth rate |
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Basic earnings per share growth(1),(2) at Constant Currency |
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assessed based on expected development of net income and shares outstanding |
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Capital expenditures |
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1.1 BN |
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1.1 - 1.3 BN |
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Acquisitions and investments(3) |
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2.2 BN |
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0.5 - 0.7 BN |
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Net cash provided by (used in) operating activities in % of revenue |
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14.7% |
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> 12.5% |
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Free cash flow in % of revenue |
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8.3% |
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> 5% |
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Net leverage ratio |
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3.2 |
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< 3.5 |
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ROIC |
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6.1% |
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> 6.0% |
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Dividend per share(4) |
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1.20 |
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assessed based on expected development of net income and shares outstanding |
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Employees(5) |
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124,736 |
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> 124,000 |
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Research and development expenses |
|
168 M |
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210 - 230 M |
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(1) Outlook 2020 inclusive of anticipated COVID-19 effects and excluding special items. 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. Growth rates based on adjusted results 2019 including IFRS 16 implementation and NxStage operations.
(2) Net income attributable to shareholders of FMC-AG & Co. KGaA.
(3) Excluding investments in debt securities.
(4) Results 2019: proposal to be approved by the 2020 Annual General Meeting.
(5) Full-time equivalents.
Outlook