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 registrant’s name into English)

 

Else-Kröner Strasse 1

61346 Bad Homburg

Germany

(Address of principal executive offices)

 

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

 

Form 20-F x                                         Form 40-F o

 

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

 

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

 

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

 

Yes  o                                                     No x

 

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

 

 

 

 

On 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 company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our 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 user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-IFRS financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures to the most comparable IFRS financial measures are included in the attached Press Release in a separate statement setting forth the reconciliation and in the Cash Flow Statement.

 

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

 

2

 

SIGNATURES

 

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

 

DATE: July 30, 2020

 

 

 

 

FRESENIUS MEDICAL CARE AG & Co. KGaA,

 

a partnership limited by shares, represented by:

 

 

 

FRESENIUS MEDICAL CARE MANAGEMENT AG, its

 

General Partner

 

 

By:

/s/ RICE POWELL

 

 

Name:

Rice Powel

 

 

Title:

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

 

 

By:

/s/ HELEN GIZA

 

 

Name:

Helen Giza

 

 

Title:

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

 

3

Exhibit 99.1

 

 

Press Release

Media Contact

 

Matthias Link

 

T +49 6172 609-2872

 

matthias.link@fmc-ag.com

 

 

 

Contact for analysts and investors

 

Dr. Dominik Heger

 

T +49 6172 609-2601

 

dominik.heger@fmc-ag.com

 

 

 

www.freseniusmedicalcare.com

 

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.”

 

1

 

Key figures (IFRS)

 

 

 

Q2 2020
EUR m

 

Q2 2019
EUR m

 

Growth
yoy

 

Growth
yoy, cc

 

H1 2020
EUR m

 

H1 2019
EUR m

 

Growth
yoy

 

Growth
yoy, cc

 

Revenue

 

4,557

 

4,345

 

5

%

5

%

9,045

 

8,478

 

7

%

6

%

Operating income

 

656

 

521

 

26

%

24

%

1,211

 

1,058

 

14

%

12

%

Net income(1)

 

351

 

254

 

38

%

36

%

634

 

525

 

21

%

18

%

Net income adjusted(1),(2)

 

351

 

250

 

40

%

38

%

634

 

536

 

18

%

16

%

Basic EPS (EUR)

 

1.20

 

0.84

 

43

%

41

%

2.15

 

1.72

 

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.

 

2

 

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).

 

3

 

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.

 

4

 

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.

 

5

 

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 company’s website www.freseniusmedicalcare.com in the “Investors” section. A replay will be available shortly after the call.

 

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results for the second quarter and first half of 2020. Our 6-K disclosure provides more details.

 

Fresenius Medical Care is the world’s leading provider of products and services for individuals with renal diseases of which around 3.5 million patients worldwide regularly undergo dialysis treatment. Through its network of 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 Company’s 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. 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.

 

6

 

Statement of earnings

 

 

 

Three months ended June 30

 

 

 

 

 

 

 

 

 

Change

 

in € million, except share data, unaudited

 

2020

 

2019

 

Change

 

at cc

 

Health Care Services

 

3,614

 

3,455

 

4.6

%

4.0

%

Health Care Products

 

943

 

890

 

6.0

%

7.5

%

Revenue

 

4,557

 

4,345

 

4.9

%

4.7

%

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

3,121

 

3,014

 

3.6

%

3.7

%

Gross profit

 

1,436

 

1,331

 

7.9

%

7.0

%

Selling, general and administrative

 

738

 

795

 

-7.2

%

-7.4

%

(Gain) loss related to divestitures of Care Coordination activities

 

(5

)

(11

)

-59.7

%

-59.8

%

Research and development

 

51

 

48

 

4.4

%

3.4

%

Income from equity method investees

 

(4

)

(22

)

-82.6

%

-82.7

%

Operating income

 

656

 

521

 

25.8

%

24.0

%

Operating income adjusted

 

656

 

517

 

27.0

%

25.1

%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

92

 

114

 

-19.6

%

-19.7

%

Income before taxes

 

564

 

407

 

38.6

%

36.2

%

Income tax expense

 

137

 

92

 

48.6

%

46.1

%

Net income

 

427

 

315

 

35.7

%

33.3

%

Net income attributable to noncontrolling interests

 

76

 

61

 

24.8

%

22.2

%

Net income(1)

 

351

 

254

 

38.3

%

36.0

%

Net income(1) adjusted

 

351

 

250

 

40.3

%

37.9

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

292,733,283

 

303,456,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

€

1.20

 

€

0.84

 

43.4

%

41.0

%

Basic earnings per share adjusted

 

€

1.20

 

€

0.82

 

45.4

%

43.0

%

In percent of revenue

 

 

 

 

 

 

 

 

 

Operating income

 

14.4

%

12.0

%

 

 

 

 

Operating income adjusted

 

14.4

%

11.9

%

 

 

 

 

 

(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.

 

7

 

Statement of earnings

 

 

 

Six months ended June 30

 

 

 

 

 

 

 

 

 

Change

 

in € million, except share data, unaudited

 

2020

 

2019

 

Change

 

at cc

 

Health Care Services

 

7,209

 

6,773

 

6.4

%

5.2

%

Health Care Products

 

1,836

 

1,705

 

7.7

%

8.3

%

Revenue

 

9,045

 

8,478

 

6.7

%

5.8

%

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

6,198

 

5,881

 

5.4

%

4.8

%

Gross profit

 

2,847

 

2,597

 

9.7

%

8.2

%

Selling, general and administrative

 

1,593

 

1,516

 

5.1

%

4.2

%

(Gain) loss related to divestitures of Care Coordination activities

 

(29

)

(11

)

153.7

%

147.9

%

Research and development

 

96

 

77

 

25.3

%

23.8

%

Income from equity method investees

 

(24

)

(43

)

-42.8

%

-42.9

%

Operating income

 

1,211

 

1,058

 

14.5

%

12.4

%

Operating income adjusted

 

1,211

 

1,074

 

12.8

%

10.8

%

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

196

 

222

 

-11.7

%

-12.5

%

Income before taxes

 

1,015

 

836

 

21.5

%

19.0

%

Income tax expense

 

237

 

193

 

23.0

%

20.5

%

Net income

 

778

 

643

 

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

%

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

295,287,813

 

305,048,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

€

2.15

 

€

1.72

 

24.8

%

22.4

%

Basic earnings per share adjusted

 

€

2.15

 

€

1.76

 

22.2

%

19.8

%

 

 

 

 

 

 

 

 

 

 

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.

 

8

 

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

 

9

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:

 

 

 

Statement of earnings

page 2

Segment information

page 3

Balance sheet

page 4

Cash flow

page 5

Revenue development

page 6

Key metrics

page 7

Quality data

page 8

Reconciliation

page 9

Reconciliation adjusted results

page 10

Outlook 2020

page 11

 

Disclaimer

 

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

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 

July 30, 2020

 

1

 

Statement of earnings

 

 

 

Three months ended June 30

 

Six months ended June 30

 

in € million, except share data, unaudited

 

2020

 

2019

 

Change

 

Change 
at cc

 

2020

 

2019

 

Change

 

Change 
at cc

 

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

 

2

 

Segment information

 

 

 

Three months ended June 30

 

Six months ended June 30

 

unaudited

 

2020

 

2019

 

Change

 

Change
at cc

 

2020

 

2019

 

Change

 

Change
at cc

 

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

 

3

 

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

 

4

 

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

 

5

 

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

 

6

 

Key metrics North America segment

 

 

 

Three months ended June 30

 

Six months ended June 30

 

unaudited

 

2020

 

2019

 

Change

 

Change
at cc

 

2020

 

2019

 

Change

 

Change
at cc

 

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
in %

 

De novos

 

Patients

 

Growth
in %

 

Treatments

 

Growth
in %

 

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
at cc

 

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

 

7

 

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

 

8

 

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

 

9

 

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

 

 

 

 

 

 

 

 

 

 

 

(Gain) loss related

 

 

 

 

 

Change

 

 

 

 

 

 

 

 

 

Cost

 

to divestitures of

 

Results

 

Change

 

(adjusted

 

 

 

Results

 

Results

 

NxStage

 

optimization

 

Care Coordination

 

2019

 

(adjusted

 

results)

 

in € million, except share data, unaudited

 

2020

 

2019

 

costs

 

costs

 

activities

 

adjusted

 

results)

 

at cc

 

Three months ended June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

4,557

 

4,345

 

 

 

 

 

 

 

4,345

 

4.9

%

4.7

%

EBITDA

 

1,066

 

908

 

4

 

3

 

(11

)

904

 

18.0

%

16.6

%

Total operating income

 

656

 

521

 

4

 

3

 

(11

)

517

 

27.0

%

25.1

%

North America

 

609

 

429

 

4

 

3

 

(11

)

425

 

43.7

%

40.9

%

Dialysis

 

567

 

428

 

4

 

3

 

 

 

435

 

30.5

%

28.0

%

Care Coordination

 

42

 

1

 

 

 

 

 

(11

)

(10

)

n.a.

 

n.a.

 

EMEA

 

78

 

96

 

 

 

 

 

 

 

96

 

-19.5

%

-18.6

%

Asia-Pacific

 

63

 

69

 

 

 

 

 

 

 

69

 

-8.7

%

-9.5

%

Dialysis

 

70

 

64

 

 

 

 

 

 

 

64

 

8.0

%

6.5

%

Care Coordination

 

(7

)

5

 

 

 

 

 

 

 

5

 

n.a.

 

n.a.

 

Latin America

 

11

 

6

 

 

 

 

 

 

 

6

 

85.5

%

110.0

%

Corporate

 

(105

)

(79

)

 

 

0

 

 

 

(79

)

33.1

%

32.7

%

Interest expense, net

 

92

 

114

 

 

 

 

 

 

 

114

 

-19.6

%

-19.7

%

Income tax expense

 

137

 

92

 

1

 

1

 

(2

)

92

 

50.3

%

47.8

%

Net income attributable to noncontrolling interests

 

76

 

61

 

 

 

 

 

 

 

61

 

24.8

%

22.2

%

Net income(1)

 

351

 

254

 

3

 

2

 

(9

)

250

 

40.3

%

37.9

%

Basic earnings per share

 

€

1.20

 

€

0.84

 

€

0.01

 

€

0.00

 

€

(0.03

)

€

0.82

 

45.4

%

43.0

%

Six months ended June 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

9,045

 

8,478

 

 

 

 

 

 

 

8,478

 

6.7

%

5.8

%

EBITDA

 

2,022

 

1,807

 

20

 

7

 

(11

)

1,823

 

10.9

%

9.2

%

Total operating income

 

1,211

 

1,058

 

20

 

7

 

(11

)

1,074

 

12.8

%

10.8

%

North America

 

1,073

 

801

 

20

 

7

 

(11

)

817

 

31.4

%

28.4

%

Dialysis

 

984

 

760

 

20

 

7

 

 

 

787

 

25.0

%

22.2

%

Care Coordination

 

89

 

41

 

 

 

 

 

(11

)

30

 

204.7

%

197.4

%

EMEA

 

179

 

235

 

 

 

 

 

 

 

235

 

-23.7

%

-23.3

%

Asia-Pacific

 

140

 

164

 

 

 

 

 

 

 

164

 

-14.6

%

-15.3

%

Dialysis

 

144

 

154

 

 

 

 

 

 

 

154

 

-5.8

%

-7.0

%

Care Coordination

 

(4

)

10

 

 

 

 

 

 

 

10

 

n.a.

 

n.a.

 

Latin America

 

18

 

17

 

 

 

 

 

 

 

17

 

2.9

%

11.4

%

Corporate

 

(199

)

(159

)

 

 

0

 

 

 

(159

)

25.0

%

24.5

%

Interest expense, net

 

196

 

222

 

 

 

 

 

 

 

222

 

-11.7

%

-12.5

%

Income tax expense

 

237

 

193

 

5

 

2

 

(2

)

198

 

20.4

%

18.0

%

Net income attributable to noncontrolling interests

 

144

 

118

 

 

 

 

 

 

 

118

 

21.8

%

18.8

%

Net income(1)

 

634

 

525

 

15

 

5

 

(9

)

536

 

18.3

%

16.0

%

Basic earnings per share

 

€

2.15

 

€

1.72

 

€

0.05

 

€

0.02

 

€

(0.03

)

€

1.76

 

22.2

%

19.8

%

 

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

 

10

 

Outlook 2020

 

 

 

 

 

Outlook 2020

 

 

 

Results 2019

 

(at Constant Currency)

 

Revenue(1)

 

€17,477 M

 

mid to high single digit growth rate

 

Operating income(1)

 

€2,356 M

 

mid to high single digit growth rate

 

Delivered Operating Income(1)

 

€2,117 M

 

mid to high single digit growth rate

 

Net income(1),(2)

 

€1,236 M

 

mid to high single digit growth rate

 

Basic earnings per share growth(1),(2) at Constant Currency

 

—

 

assessed based on expected development of net income and shares outstanding

 

Capital expenditures

 

€1.1 BN

 

€1.1 - €1.3 BN

 

Acquisitions and investments(3)

 

€2.2 BN

 

€0.5 - €0.7 BN

 

Net cash provided by (used in) operating activities in % of revenue

 

14.7%

 

> 12.5%

 

Free cash flow in % of revenue

 

8.3%

 

> 5%

 

Net leverage ratio

 

3.2

 

< 3.5

 

ROIC

 

6.1%

 

> 6.0%

 

Dividend per share(4)

 

€1.20

 

assessed based on expected development of net income and shares outstanding

 

Employees(5)

 

124,736

 

> 124,000

 

Research and development expenses

 

€168 M

 

€210 - €230 M

 

 

(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

 

11