EX-99.2 3 tm2219079d2_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2 

 

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE SECOND QUARTER AND FIRST HALF YEAR 2022

 

August 2, 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 June 30,   Six months ended June 30, 
in € million, except share data, unaudited  2022   2021   Change   Change
at cc		   2022   2021   Change   Change
at cc		 
Health Care Services   3,782    3,400    11.2%   0.8%   7,389    6,726    9.9%   1.7%
Health Care Products   975    920    6.0%   1.1%   1,916    1,804    6.2%   2.2%
Total revenue   4,757    4,320    10.1%   0.8%   9,305    8,530    9.1%   1.8%
                                         
Costs of revenue   3,411    3,036    12.3%   2.7%   6,701    6,039    10.9%   3.4%
Gross profit   1,346    1,284    4.8%   -3.5%   2,604    2,491    4.6%   -2.1%
Selling, general and administrative   969    830    16.8%   8.2%   1,841    1,542    19.4%   12.1%
Research and development   55    52    6.5%   0.9%   105    101    4.4%   0.0%
Income from equity method investees   (19)   (22)   -13.6%   -14.0%   (30)   (50)   -40.5%   -40.5%
Operating income   341    424    -19.7%   -27.3%   688    898    -23.4%   -28.9%
Operating income excl. special items 1   445    433    2.8%   -6.1%   852    910    -6.4%   -12.5%
                                         
Interest income   (13)   (14)   -8.7%   6.8%   (27)   (29)   -8.1%   -0.5%
Interest expense   85    83    1.4%   -4.1%   168    174    -4.0%   -8.8%
Interest expense, net   72    69    3.4%   -6.3%   141    145    -3.2%   -10.5%
Income before taxes   269    355    -24.2%   -31.5%   547    753    -27.3%   -32.4%
Income tax expense   63    75    -16.4%   -24.0%   130    169    -23.3%   -28.3%
Net income   206    280    -26.4%   -33.5%   417    584    -28.5%   -33.6%
Net income attributable to noncontrolling interests   59    61    -3.7%   -14.6%   112    116    -2.8%   -11.7%
Net income attributable to shareholders of FMC-AG & Co. KGaA   147    219    -32.7%   -38.7%   305    468    -34.9%   -39.0%
Net income attributable to shareholders of FMC-AG & Co. KGaA excl. special items 1   225    225    0.2%   -7.2%   428    476    -10.0%   -14.9%
                                         
Operating income   341    424    -19.7%   -27.3%   688    898    -23.4%   -28.9%
Depreciation, amortization and impairment loss   422    396    6.9%   -2.4%   842    784    7.4%   0.1%
EBITDA   763    820    -6.9%   -15.3%   1,530    1,682    -9.1%   -15.4%
                                         
Weighted average number of shares   293,145,413    292,913,910              293,076,643    292,896,096           
                                         
Basic earnings per share  €0.50   €0.75    -32.7%   -38.8%  €1.04   €1.60    -34.9%   -39.1%
Basic earnings per ADS  €0.25   €0.37    -32.7%   -38.8%  €0.52   €0.80    -34.9%   -39.1%
                                         
In percent of revenue                                        
Operating income margin   7.2%   9.8%             7.4%   10.5%          
Operating income margin excl. special items 1   9.4%   10.0%             9.2%   10.7%          
EBITDA margin   16.0%   19.0%             16.4%   19.7%          

 

1 For a reconciliation of special items, please refer to the table on page 9.

 

Statement of earningspage 2 of 10August 2, 2022

 

 

 

 

Segment information

 

   Three months ended June 30,   Six months ended June 30, 
unaudited  2022   2021   Change   Change
at cc		   2022   2021   Change   Change
at cc		 
Total                                        
Revenue in € million   4,757    4,320    10.1%   0.8%   9,305    8,530    9.1%   1.8%
Operating income in € million   341    424    -19.7%   -27.3%   688    898    -23.4%   -28.9%
Operating income margin   7.2%   9.8%             7.4%   10.5%          
Days sales outstanding (DSO)                       69    58           
Employees (full-time equivalents)                       123,153    123,538           
                                         
North America                                        
Revenue in € million   3,294    2,953    11.5%   -1.4%   6,464    5,852    10.5%   0.2%
Operating income in € million   340    398    -14.4%   -24.0%   644    796    -19.1%   -26.4%
Operating income margin   10.3%   13.5%             10.0%   13.6%          
Days sales outstanding (DSO)                       56    37           
                                         
EMEA                                        
Revenue in € million   727    693    4.9%   6.6%   1,401    1,362    2.8%   4.6%
Operating income in € million   60    73    -18.6%   -18.1%   121    153    -21.0%   -18.5%
Operating income margin   8.2%   10.6%             8.6%   11.2%          
Days sales outstanding (DSO)                       88    87           
                                         
Asia-Pacific                                        
Revenue in € million   516    486    6.3%   1.6%   1,023    957    7.0%   2.9%
Operating income in € million   71    84    -15.5%   -15.7%   170    170    0.3%   -0.7%
Operating income margin   13.8%   17.3%             16.6%   17.7%          
Days sales outstanding (DSO)                       99    105           
                                         
Latin America                                        
Revenue in € million   207    171    21.4%   16.8%   391    330    18.5%   16.1%
Operating income in € million   (6)   3    n.a.    n.a.    5    9    -46.2%   -70.9%
Operating income margin   -3.0%   1.5%             1.3%   2.8%          
Days sales outstanding (DSO)                       121    135           
                                         
Corporate                                        
Revenue in € million   13    17    -29.8%   -34.4%   26    29    -13.7%   -18.2%
Operating income in € million   (124)   (134)   -6.7%   -12.0%   (252)   (230)   9.8%   5.7%

 

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 10August 2, 2022

 

 

 

 

Balance sheet

 

   June 30   December 31 
in € million, except for net leverage ratio, unaudited  2022   2021 
Assets        
Current assets   8,105    7,967 
Goodwill and intangible assets   17,144    15,821 
Right of use assets   4,450    4,316 
Other non-current assets   6,371    6,263 
Total assets   36,070    34,367 
           
Liabilities and equity          
Current liabilities   6,877    7,258 
Non-current liabilities   13,742    13,130 
Total equity   15,451    13,979 
Total liabilities and equity   36,070    34,367 
           
Equity/assets ratio   43%   41%
           
Debt and lease liabilities          
Short-term debt from unrelated parties   1,391    1,178 
Short-term debt from related parties   23    78 
Current portion of long-term debt   57    668 
Current portion of lease liabilities from unrelated parties   683    640 
Current portion of lease liabilities from related parties   22    21 
Long-term debt, less current portion   7,263    6,647 
Lease liabilities from unrelated parties, less current portion   4,133    3,990 
Lease liabilities from related parties, less current portion   87    98 
Total debt and lease liabilities   13,659    13,320 
Minus: Cash and cash equivalents   (1,025)   (1,482)
Total net debt and lease liabilities   12,634    11,838 
           
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures          
Net income   1,053    1,219 
Income tax expense   313    353 
Interest income   (71)   (73)
Interest expense   347    353 
Depreciation and amortization   1,647    1,586 
Adjustments1   260    125 
Annualized adjusted EBITDA   3,549    3,563 
           
Net leverage ratio   3.6    3.3 

 

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 (2022: €4 M; 2021: €13 M), non-cash charges, primarily related to pension expense (2022: €51 M; 2021: €49 M), impairment loss (2022: €35 M; 2021: €38 M) and special items, including costs related to the FME25 Program (2022: € 63 M; 2021: €25 M), Humacyte Investment Remeasurement (2022: €78 M), Hyperinflation in Turkiye (2022: €6 M) and the Impacts Related to the War in Ukraine (2022: €23 M).

 

Balance sheetpage 4 of 10August 2, 2022

 

 

 

 

Cash flow statement

 

   Three months ended June 30,   Six months ended June 30, 
in € million, unaudited  2022   2021   2022   2021 
Operating activities                    
Net income   206    280    417    584 
Depreciation, amortization and impairment loss   422    396    842    784 
Change in working capital and other non-cash items   123    245    (349)   (239)
Net cash provided by (used in) operating activities   751    921    910    1,129 
In percent of revenue   15.8%   21.3%   9.8%   13.2%
                     
Investing activities                    
Purchases of property, plant and equipment and capitalized development costs   (172)   (209)   (334)   (394)
Proceeds from sale of property, plant and equipment   3    8    5    14 
Capital expenditures, net   (169)   (201)   (329)   (380)
                     
Free cash flow   582    720    581    749 
In percent of revenue   12.2%   16.7%   6.2%   8.8%
                     
Acquisitions and investments, net of cash acquired, and purchases of intangible assets   (24)   (22)   (61)   (129)
Investments in debt securities   (43)   (52)   (86)   (62)
Proceeds from divestitures   26    0    40    2 
Proceeds from sale of debt securities   13    26    27    96 
Free cash flow after investing activities   554    672    501    656 

 

Cash flowpage 5 of 10August 2, 2022

 

 

 

 

Revenue development

 

                       Same 
                       market 
               Change   Organic   treatment 
in € million, unaudited  2022   2021   Change   at cc   growth   growth1 
Three months ended June 30,                        
Total revenue   4,757    4,320    10.1%   0.8%   0.3%     
Health Care Services   3,782    3,400    11.2%   0.8%   0.1%   -1.5%
Health Care Products   975    920    6.0%   1.1%   1.1%     
                               
North America   3,294    2,953    11.5%   -1.4%   -2.1%     
Health Care Services   3,026    2,695    12.3%   -0.7%   -1.5%   -2.4%2 
Health Care Products   268    258    3.8%   -8.5%   -8.4%     
                               
EMEA   727    693    4.9%   6.6%   6.4%     
Health Care Services   362    341    6.1%   6.5%   6.0%   0.0%
Health Care Products   365    352    3.7%   6.8%   6.8%     
                               
Asia-Pacific   516    486    6.3%   1.6%   1.6%     
Health Care Services   237    227    4.6%   2.6%   2.6%   2.6%
Health Care Products   279    259    7.8%   0.8%   0.8%     
                               
Latin America   207    171    21.4%   16.8%   17.5%     
Health Care Services   149    123    21.0%   19.7%   20.6%   -1.8%
Health Care Products   58    48    22.4%   9.6%   9.7%     
                               
Corporate   13    17    -29.8%   -34.4%          
Health Care Services   8    14    -47.7%   -53.6%          
Health Care Products   5    3    22.9%   22.6%          
                               
Six months ended June 30,                              
Total revenue   9,305    8,530    9.1%   1.8%   0.9%     
Health Care Services   7,389    6,726    9.9%   1.7%   0.6%   -1.5%
Health Care Products   1,916    1,804    6.2%   2.2%   2.1%     
                               
North America   6,464    5,852    10.5%   0.2%   -0.9%     
Health Care Services   5,915    5,338    10.8%   0.5%   -0.8%   -2.3%2 
Health Care Products   549    514    7.1%   -2.9%   -2.9%     
                               
EMEA   1,401    1,362    2.8%   4.6%   4.3%     
Health Care Services   707    674    4.9%   5.7%   5.1%   -0.4%
Health Care Products   694    688    0.8%   3.6%   3.4%     
                               
Asia-Pacific   1,023    957    7.0%   2.9%   2.6%     
Health Care Services   473    455    4.1%   2.4%   1.8%   2.1%
Health Care Products   550    502    9.6%   3.2%   3.2%     
                               
Latin America   391    330    18.5%   16.1%   16.6%     
Health Care Services   279    238    17.2%   17.5%   18.1%   -1.8%
Health Care Products   112    92    21.7%   12.6%   12.7%     
                               
Corporate   26    29    -13.7%   -18.2%          
Health Care Services   15    21    -27.3%   -33.7%          
Health Care Products   11    8    18.3%   18.0%          

 

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 months and -2.2% for the six months ended June 30, 2022.

 

Revenue developmentpage 6 of 10August 2, 2022

 

 

 

 

Key metrics Dialysis Care Services

 

   Six months ended June 30, 2022 
unaudited  Clinics   Growth
in %		   De novos   Patients   Growth
in %		   Treatments   Growth
in %		 
Total   4,163    1%   24    345,687    0%   25,932,144    -1%
North America   2,694    1%   11    209,084    -1%   15,767,874    -1%
EMEA   820    1%   4    66,544    2%   4,919,002    0%
Asia-Pacific   400    -1%   8    33,799    1%   2,387,338    1%
Latin America   249    2%   1    36,260    0%   2,857,930    -3%

 

Key metricspage 7 of 10August 2, 2022

 

 

 

 

Quality data1

 

   North America   EMEA   Latin America   Asia-Pacific 
in % of patients  Q2 2022   Q2 2021   Q2 2022   Q2 2021   Q2 2022   Q2 2021   Q2 2022   Q2 2021 
Kt/V ≥ 1.2   97    97    93    93    92    91    95    93 
Hemoglobin = 10-12 g/dl   70    69    81    81    49    48    52    50 
Calcium = 8.4-10.2 mg/dl   84    81    79    78    74    74    72    71 
Albumin ≥ 3.5 g/dl   84    80    89    90    90    89    89    89 
Phosphate ≤ 5.5 mg/dl   57    58    78    79    77    76    63    63 
Patients without catheter (after 90 days)   78    79    76    77    77    78    79    81 
                                         
in days                                        
Days in hospital per patient year                                        
(global basis)   10.7    11.1    (Q1 2021)                          

 

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

 

Quality datapage 8 of 10August 2, 2022

 

 

 

 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparability with the Company´s outlook

 

                                       Results excl. special items 
in € million, except
share data, unaudited		  Results
2022		   FME25
Program		   Humacyte
Investment
Remeasurement		   Ukraine
War1		   Hyperinflation
in Turkiye		   Results
2022
excl.
special
items		   Results
2021		   FME25
program		   Results
2021
excl.
special
items		   Change   Change
at cc		 
Three months ended June 30,                                            
Total revenue   4,757                        4,757    4,320         4,320    10.1%   0.8%
                                                        
EBITDA   763    21    75    2    6    867    820    9    829    4.6%   -4.4%
                                                        
Total operating income   341    21    75    2    6    445    424    9    433    2.8%   -6.1%
North America   340    6    75    -    -    421    398    3    401    5.2%   -6.3%
EMEA   60    4    -    2    6    72    73    -    73    -1.4%   3.1%
Asia-Pacific   71    -    -    -    -    71    84    -    84    -15.5%   -15.7%
Latin America   (6)   -    -    -    -    (6)   3    -    3    n.a.    n.a. 
Corporate   (124)   11    -    -    -    (113)   (134)   6    (128)   -10.8%   -15.5%
                                                        
Interest expense, net   72                        72    69         69    3.4%   -6.3%
                                                        
Income tax expense   63    6    20    -    -    89    75    3    78    14.7%   4.2%
                                                        
Net income attributable to noncontrolling interests   59                        59    61         61    -3.7%   -14.6%
                                                        
Net income2   147    15    55    2    6    225    219    6    225    0.2%   -7.2%
                                                        
Basic earnings per share  €0.50   €0.05   €0.19   €0.01   €0.02   €0.77   €0.75   €0.02   €0.77    0.1%   -7.3%
                                                        
Six months ended June 30,                                                       
Total revenue   9,305                        9,305    8,530         8,530    9.1%   1.8%
                                                        
EBITDA   1,530    49    78    23    6    1,686    1,682    12    1,694    -0.5%   -7.1%
                                                        
Total operating income   688    57    78    23    6    852    898    12    910    -6.4%   -12.5%
North America   644    20    78    -    -    742    796    3    799    -7.2%   -15.6%
EMEA   121    6    -    23    6    156    153    -    153    1.9%   6.8%
Asia-Pacific   170    -    -    -    -    170    170    -    170    0.3%   -0.7%
Latin America   5    -    -    -    -    5    9    -    9    -46.0%   -70.8%
Corporate   (252)   31    -    -    -    (221)   (230)   9    (221)   0.0%   -3.7%
                                                        
Interest expense, net   141                        141    145         145    -3.2%   -10.5%
                                                        
Income tax expense   130    17    21    3    -    171    169    4    173    -1.7%   -8.2%
                                                        
Net income attributable to noncontrolling interests   112                        112    116         116    -2.8%   -11.7%
                                                        
Net income2   305    40    57    20    6    428    468    8    476    -10.0%   -14.9%
                                                        
Basic earnings per share  €1.04   €0.14   €0.19   €0.07   €0.02   €1.46   €1.60   €0.02   €1.62    -10.0%   -14.9%

 

1 Bad debt expense in Russia and Ukraine and accruals for certain risks associated with allowances on inventories related to the Ukraine War.

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

 

Reconciliation results excl. special itemspage 9 of 10August 2, 2022

 

 

 

 

Outlook 2022

 

       Revised Outlook 2022  Previous Outlook 2022
   Results 2021   (at Constant Currency, except for ROIC)  (at Constant Currency, except for ROIC)
Revenue1  €17,619 M   growth: low-single-digit percentage rate  growth: low-to-mid-single-digit percentage rate
Revenue growth at Constant Currency1       growth: low-single-digit percentage rate  growth: low-to-mid-single-digit percentage rate
Operating income1   €1,915 M   decline: around mid-teens percentage rate  growth: low-to-mid-single-digit percentage rate
Net income1, 2   €1,018 M   decline: around high-teens percentage rate  growth: low-to-mid-single-digit percentage rate
Net income2 growth at Constant Currency1       decline: around high-teens percentage rate  growth: low-to-mid-single-digit percentage rate
ROIC1   5.1%   ≥ 4.0%  ≥ 5.0%

 

1 Revised Outlook 2022 is based on the assumptions outlined in the earnings release for the second quarter and first half year 2022 and excludes special items. Special items include further costs related to the FME25 Program, Humacyte Investment Remeasurement, Hyperinflation in Turkiye, the Impacts Related to the War in Ukraine 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 2022page 10 of 10August 2, 2022