EX-99.2 3 tm2136073d4_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE FOURTH QUARTER 2021

AND FULL YEAR 2021

February 22, 2022

 

 

 

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 results excl. special items page 9
Outlook 2022 page 10

 

Disclaimer

 

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

 

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 

 

 

 

 

Statement of earnings

 

  Three months ended December 31,     Twelve months ended December 31,  
in € million, except share data   2021     2020     Change     Change
at cc		     2021     2020     Change     Change
at cc		  
Health Care Services     3,621       3,406       6.3 %     2.9 %     13,876       14,114       -1.7 %     1.9 %
Health Care Products     1,026       994       3.3 %     1.2 %     3,743       3,745       -0.1 %     1.6 %
Total revenue     4,647       4,400       5.6 %     2.5 %     17,619       17,859       -1.3 %     1.8 %
                                                                 
Costs of revenue     3,328       3,026       10.0 %     6.8 %     12,542       12,322       1.8 %     5.2 %
Gross profit     1,319       1,374       -4.0 %     -6.7 %     5,077       5,537       -8.3 %     -5.7 %
Selling, general and administrative     823       906       -9.1 %     -11.4 %     3,096       3,134       -1.2 %     1.6 %
Research and development     68       52       29.2 %     27.6 %     221       194       13.9 %     15.6 %
Income from equity method investees     (21 )     (46 )     -54.5 %     -54.8 %     (92 )     (95 )     -2.5 %     -2.4 %
Operating income     449       462       -2.7 %     -6.9 %     1,852       2,304       -19.6 %     -17.2 %
Operating income margin     9.7 %     10.5 %                     10.5 %     12.9 %                
                                                                 
Interest income     (28 )     (14 )     95.7 %     97.1 %     (73 )     (42 )     74.4 %     80.0 %
Interest expense     95       98       -3.6 %     -6.3 %     353       410       -13.8 %     -11.2 %
Interest expense, net     67       84       -20.7 %     -24.1 %     280       368       -23.8 %     -21.6 %
Income before taxes     382       378       1.3 %     -3.0 %     1,572       1,936       -18.8 %     -16.4 %
Income tax expense     79       139       -43.2 %     -45.7 %     353       501       -29.5 %     -27.3 %
Net income     303       239       27.2 %     21.8 %     1,219       1,435       -15.1 %     -12.6 %
Net income attributable to noncontrolling interests     74       62       21.7 %     18.4 %     250       271       -8.0 %     -4.7 %
Net income attributable to shareholders of FMC-AG & Co. KGaA     229       177       29.1 %     22.9 %     969       1,164       -16.8 %     -14.4 %
                                                                 
Operating income     449       462       -2.7 %     -6.9 %     1,852       2,304       -19.6 %     -17.2 %
Depreciation, amortization and impairment loss     437       581       -24.9 %     -27.1 %     1,624       1,786       -9.1 %     -6.5 %
EBITDA     886       1,043       -15.1 %     -18.1 %     3,476       4,090       -15.0 %     -12.5 %
EBITDA margin     19.1 %     23.7 %                     19.7 %     22.9 %                
                                                                 
Weighted average number of shares     292,999,055       292,855,969                       292,944,732       294,055,525                  
                                                                 
Basic earnings per share   € 0.78     € 0.61       29.0 %     22.9 %   € 3.31     € 3.96       -16.4 %     -14.1 %
Basic earnings per ADS   € 0.39     € 0.30       29.0 %     22.9 %   € 1.65     € 1.98       -16.4 %     -14.1 %

 

Statement of earningspage 2 of 10February 22, 2022

 

 

 

 

 

Segment information

 

   Three months ended December 31,   Twelve months ended December 31, 
   2021   2020   Change   Change
at cc		   2021   2020   Change   Change
at cc		 
Total                                        
Revenue in € million   4,647    4,400    5.6%   2.5%   17,619    17,859    -1.3%   1.8%
Operating income in € million   449    462    -2.7%   -6.9%   1,852    2,304    -19.6%   -17.2%
Operating income margin   9.7%   0              10.5%   12.9%          
Days sales outstanding (DSO)                       62    50           
Employees (full-time equivalents)                       122,909    125,364           
                                         
North America                                        
Revenue in € million   3,156    2,983    5.8%   1.2%   12,088    12,478    -3.1%   0.3%
Operating income in € million   402    533    -24.5%   -28.5%   1,644    2,120    -22.4%   -19.8%
Operating income margin   12.7%   17.9%             13.6%   17.0%          
Days sales outstanding (DSO)                       44    26           
                                         
EMEA                                        
Revenue in € million   732    715    2.4%   2.2%   2,765    2,763    0.1%   1.0%
Operating income in € million   77    134    -42.1%   -41.7%   309    412    -24.9%   -24.5%
Operating income margin   10.6%   18.7%             11.2%   14.9%          
Days sales outstanding (DSO)                       88    90           
                                         
Asia-Pacific                                        
Revenue in € million   552    517    6.7%   4.6%   2,010    1,894    6.1%   6.9%
Operating income in € million   94    107    -12.0%   -12.1%   350    344    1.7%   3.4%
Operating income margin   17.0%   20.6%             17.4%   18.1%          
Days sales outstanding (DSO)                       103    110           
                                         
Latin America                                        
Revenue in € million   195    177    10.5%   17.4%   703    684    2.7%   16.0%
Operating income in € million   (2)   (186)   -99.1%   -99.0%   12    (157)   n.a.    n.a. 
Operating income margin   -0.8%   -105.0%             1.7%   -22.9%          
Days sales outstanding (DSO)                       130    134           
                                         
Corporate                                        
Revenue in € million   12    8    44.0%   38.0%   53    40    34.9%   38.1%
Operating income in € million   (122)   (126)   -2.8%   -4.3%   (463)   (415)   11.7%   13.6%

 

cc = constant currency. Changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We calculate these non-IFRS financial measures at constant exchange rates to show changes in our revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant Currency".

 

Segment informationpage 3 of 10February 22, 2022

 

 

 

 

 

Balance sheet

 

   December 31   December 31 
in € million, except for net leverage ratio  2021   2020 
Assets          
Current assets   7,967    7,275 
Goodwill and intangible assets   15,821    14,340 
Right of use assets   4,316    4,130 
Other non-current assets   6,263    5,944 
Total assets   34,367    31,689 
           
Liabilities and equity          
Current liabilities   7,258    6,056 
Non-current liabilities   13,130    13,302 
Total equity   13,979    12,331 
Total liabilities and equity   34,367    31,689 
           
Equity/assets ratio   41%   39%
           
Debt and lease liabilities          
Short-term debt from unrelated parties   1,178    63 
Short-term debt from related parties   78    17 
Current portion of long-term debt   668    1,008 
Current portion of lease liabilities from unrelated parties   640    588 
Current portion of lease liabilities from related parties   21    21 
Long-term debt, less current portion   6,647    6,800 
Lease liabilities from unrelated parties, less current portion   3,990    3,764 
Lease liabilities from related parties, less current portion   98    119 
Total debt and lease liabilities   13,320    12,380 
Minus: Cash and cash equivalents   (1,482)   (1,082)
Total net debt and lease liabilities   11,838    11,298 
           
Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures          
Net income   1,219    1,435 
Income tax expense   353    501 
Interest income   (73)   (42)
Interest expense   353    410 
Depreciation and amortization   1,586    1,587 
Adjustments1   125    249 
Adjusted EBITDA   3,563    4,140 
           
Net leverage ratio   3.3    2.7 

 

1 Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Syndicated Credit Facility (2021: €13 M), non-cash charges, primarily related to pension expense (2021: €49 M; 2020: €50 M), impairment loss (2021: €38 M; 2020: €199 M) and costs related to the FME25 Program (2021: €25 M).

 

Balance sheetpage 4 of 10February 22, 2022

 

 

 

 

 

Cash flow statement

 

  Three months ended December 31,   Twelve months ended December 31, 
in € million  2021   2020   2021   2020 
Operating activities                    
Net income   303    239    1,219    1,435 
Depreciation / amortization / impairment loss   437    581    1,624    1,786 
Change in working capital and other non-cash items   (71)   (236)   (354)   1,012 
Net cash provided by (used in) operating activities   669    584    2,489    4,233 
In percent of revenue   14.4%   13.3%   14.1%   23.7%
                     
Investing activities                    
Purchases of property, plant and equipment and capitalized development costs   (266)   (306)   (854)   (1,052)
Proceeds from sale of property, plant and equipment   (3)   5    25    16 
Capital expenditures, net   (269)   (301)   (829)   (1,036)
                     
Free cash flow   400    283    1,660    3,197 
In percent of revenue   8.6%   6.4%   9.4%   17.9%
                     
Acquisitions and investments, net of cash acquired, and purchases of intangible assets   (164)   (104)   (434)   (259)
Investments in debt securities   (66)   (66)   (129)   (96)
Proceeds from divestitures   50    2    52    14 
Proceeds from sale of debt securities   26    15    144    42 
Free cash flow after investing activities   246    130    1,293    2,898 

 

Cash flowpage 5 of 10February 22, 2022

 

 

 

 

  

Revenue development

 

                                  Same market  
                      Change     Organic     treatment  
in € million   2021     2020     Change     at cc     growth     growth1  
Three months ended December 31,                                    
Total revenue   4,647     4,400     5.6 %   2.5 %   1.8 %      
Health Care Services   3,621     3,406     6.3 %   2.9 %   2.0 %   -1.9 %
Health Care Products   1,026     994     3.3 %   1.2 %   1.4 %      
                                     
North America   3,156     2,983     5.8 %   1.2 %   0.4 %      
Health Care Services   2,872     2,704     6.2 %   1.6 %   0.6 %   -2.4 % 2
Health Care Products   284     279     2.0 %   -2.2 %   -2.0 %      
                                     
EMEA   732     715     2.4 %   2.2 %   1.9 %      
Health Care Services   359     337     6.5 %   5.8 %   5.2 %   -2.1 %
Health Care Products   373     378     -1.3 %   -1.0 %   -0.9 %      
                                     
Asia-Pacific   552     517     6.7 %   4.6 %   3.9 %      
Health Care Services   248     235     5.3 %   5.3 %   3.6 %   2.8 %
Health Care Products   304     282     7.8 %   4.0 %   4.1 %      
                                     
Latin America   195     177     10.5 %   17.4 %   19.5 %      
Health Care Services   135     125     8.3 %   17.1 %   20.3 %   -1.5 %
Health Care Products   60     52     15.6 %   18.1 %   17.9 %      
                                     
Corporate   12     8     44.0 %   38.0 %            
Health Care Services   7     5     41.3 %   31.9 %            
Health Care Products   5     3     49.0 %   48.9 %            
                                     
Twelve months ended December 31,                                    
Total revenue   17,619     17,859     -1.3 %   1.8 %   1.4 %      
Health Care Services   13,876     14,114     -1.7 %   1.9 %   1.3 %   -1.9 %
Health Care Products   3,743     3,745     -0.1 %   1.6 %   1.7 %      
                                     
North America   12,088     12,478     -3.1 %   0.3 %   -0.2 %      
Health Care Services   11,020     11,364     -3.0 %   0.4 %   -0.1 %   -2.1 % 2
Health Care Products   1,068     1,114     -4.2 %   -0.8 %   -0.7 %      
                                     
EMEA   2,765     2,763     0.1 %   1.0 %   0.9 %      
Health Care Services   1,379     1,365     1.0 %   2.0 %   1.4 %   -3.2 %
Health Care Products   1,386     1,398     -0.9 %   0.1 %   0.3 %      
                                     
Asia-Pacific   2,010     1,894     6.1 %   6.9 %   6.6 %      
Health Care Services   942     876     7.5 %   10.1 %   9.4 %   4.8 %
Health Care Products   1,068     1,018     4.9 %   4.2 %   4.3 %      
                                     
Latin America   703     684     2.7 %   16.0 %   15.3 %      
Health Care Services   499     485     2.9 %   18.2 %   17.2 %   -1.1 %
Health Care Products   204     199     2.2 %   10.7 %   10.9 %      
                                     
Corporate   53     40     34.9 %   38.1 %            
Health Care Services   36     24     50.1 %   55.2 %            
Health Care Products   17     16     10.6 %   10.7 %            

 

1 Same market treatment growth = organic growth less price effects.

2 U.S. (excl. Mexico), same market treatment growth North America: -2.5% for the three and the twelve months ended December 31, 2021.

 

Revenue development page 6 of 10 February 22, 2022

 

 

 

 

 

 

Key metrics Dialysis Care Services

 

    Twelve months ended December 31, 2021
          Growth                 Growth           Growth  
    Clinics     in %     De novos     Patients     in %     Treatments     in %  
Total     4,171       2 %     74       345,425       0 %     52,871,887       -1 %
                                                         
North America     2,695       2 %     33       209,291       0 %     32,334,280       -2 %
EMEA     821       2 %     19       65,599       -1 %     9,885,319       -3 %
Asia-Pacific     405       1 %     16       33,760       2 %     4,766,472       2 %
Latin America     250       0 %     6       36,775       -1 %     5,885,816       0 %

 

Key metrics

 page 7 of 10 February 22, 2022

 

 

 

 

 

 

Quality data1

 

    North America     EMEA     Latin America     Asia-Pacific  
in % of patients   Q4 2021     Q4 2020     Q4 2021     Q4 2020     Q4 2021     Q4 2020     Q4 2021     Q4 2020  
Kt/V ≥ 1.2   97     97     93     93     93     91     94     94  
Hemoglobin = 10-12 g/dl   72     71     82     82     49     48     51     52  
Calcium = 8.4-10.2 mg/dl   84     81     81     78     76     73     70     72  
Albumin ≥ 3.5 g/dl   83     80     89     90     90     89     88     91  
Phosphate ≤ 5.5 mg/dl   56     59     79     80     75     76     67     64  
Patients without catheter
(after 90 days)		   78     79     76     77     78     78     80     81  
in days                                                
Days in hospital per patient year   10.0     9.7     7.5     7.7     4.0     4.0     4.0     3.5  

 

1 Definitions cf. Annual Report 2021, Section "Non-Financial Group Report"

 

Quality data

 page 8 of 10 February 22, 2022

 

 

 

 

 

 

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

 

                           Results excl. special items 
           Results 2021          Results 2020         
   Results   FME25   excl. special   Results   Impairment   excl. special         
in € million, except share data  2021   Program   items   2020   Charge1   items   Change   Change at cc 
Three months ended December 31,                                        
Total revenue   4,647         4,647    4,400         4,400    5.6%   2.5%
                                         
EBITDA   886    5    891    1,043         1,043    -14.6%   -17.6%
                                         
Total operating income   449    43    492    462    195    657    -25.0%   -27.8%
North America   402    23    425    533         533    -20.2%   -24.1%
EMEA   77    13    90    134         134    -32.4%   -31.8%
Asia-Pacific   94         94    107         107    -12.0%   -12.1%
Latin America   (2)        (2)   (186)   195    9    n.a    n.a 
Corporate   (122)   7    (115)   (126)        (126)   -8.0%   -9.6%
                                         
Interest expense, net   67         67    84         84    -20.7%   -24.1%
                                         
Income tax expense   79    9    88    139         139    -37.2%   -39.5%
                                         
Net income attributable to noncontrolling interests   74         74    62         62    21.7%   18.4%
                                         
Net income2   229    34    263    177    195    372    -29.2%   -31.9%
                                         
Basic earnings per share  €0.78   €0.12   €0.90   €0.61   €0.66   €1.27    -29.3%   -32.0%
                                         
Twelve months ended December 31,                                        
Total revenue   17,619         17,619    17,859         17,859    -1.3%   1.8%
                                         
EBITDA   3,476    25    3,501    4,090         4,090    -14.4%   -11.9%
                                         
Total operating income   1,852    63    1,915    2,304    195    2,499    -23.4%   -21.1%
North America   1,644    29    1,673    2,120         2,120    -21.1%   -18.3%
EMEA   309    13    322    412         412    -21.7%   -21.3%
Asia-Pacific   350         350    344         344    1.7%   3.4%
Latin America   12         12    (157)   195    38    -68.5%   -69.9%
Corporate   (463)   21    (442)   (415)        (415)   6.8%   8.6%
                                         
Interest expense, net   280         280    368         368    -23.8%   -21.6%
                                         
Income tax expense   353    14    367    501         501    -26.7%   -24.5%
                                         
Net income attributable to noncontrolling interests   250         250    271         271    -8.0%   -4.7%
                                         
Net income2   969    49    1,018    1,164    195    1,359    -25.1%   -23.0%
                                         
Basic earnings per share  €3.31   €0.17   €3.48   €3.96   €0.66   €4.62    -24.8%   -22.7%

 

1 Impairment of goodwill and trade names in the Latin America Segment

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

 

Reconciliation results excl. special items

 page 9 of 10 February 22, 2022

 

 

 

 

 

 

Outlook 2022

 

       Outlook 2022
   Results 2021   (at Constant Currency, except for ROIC)
Revenue1  €17,619 M   growth: low-to-mid-single-digit percentage rate
Revenue growth at Constant Currency1       growth: low-to-mid-single-digit percentage rate
Operating income1  €1,915 M   growth: low-to-mid-single-digit percentage rate
Net income1, 2  €1,018 M   growth: low-to-mid-single-digit percentage rate
Net income2 growth at Constant Currency1       growth: low-to-mid-single-digit percentage rate
ROIC1   5.1%  ≥ 5.0%

 

1 Outlook 2022 is based on the assumptions outlined in the press release for the fiscal year and fourth quarter of 2021 and excludes special items. Special items include further costs related to the FME25 program and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. The growth rates are based on the results 2021 excluding the costs related to the FME25 program (€63 M for operating income and €49 M for net income).

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

 

Outlook 2022

 page 10 of 10 February 22, 2022