Investor Presentation • Sep 22, 2016
Investor Presentation
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London | September 22, 2016
Safe harbor statement: This presentation includes certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Act of 1934, as amended. The Company has based these forward-looking statements on its views with respect to future events an financial performance. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties, including changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. These and other risks and uncertainties are discussed in detail in Fresenius Medical Care AG & Co. KGaA's (FMC AG & Co. KGaA) reports filed with the Securities and Exchange Commission (SEC) and the German Exchange Commission (Deutsche Börse).
Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and the company does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable law and regulations.
If not mentioned differently the term net income after minorities refers to the net income attributable to the shareholders of Fresenius Medical Care AG Co. KGaA independent of being the reported or the adjusted number. The term EMEA refers to the region Europe, Middle East and Africa. Amounts are in US-\$ if not mentioned otherwise.
Percentage of 1st half 2016 revenue
Therapies & laboratory services for patients with chronic kidney failure
Businesses supporting dialysis, e.g. vascular services
68% 13% 19%
1
Expected global dialysis patient growth
| Position 1 | |
|---|---|
| Dialyzers | FMC |
| Dialysis machines | FMC |
| Hemodialysis concentrates | FMC |
| Bloodlines | FMC |
| Peritoneal dialysis products | Baxter |
Acquisition of dialysis service provider in India
Transaction:
1
Diagrams: different scales applied
| North America | US\$ million | EMEA | US\$ million | ||
|---|---|---|---|---|---|
| Revenue | 3,168 | +8% | Revenue | 676 | +3%cc |
| Organic growth | +7% | Organic growth | 0% | ||
| Asia-Pacific | US\$ million | Latin America | US\$ million | ||
| Revenue | 397 | +6%cc | Revenue | 175 | +9%cc |
| Organic growth | +7% | Organic growth | +17% | ||
| 9% Asia-Pacific cc = constant currency, corporate revenue = \$4m |
4% Latin America 15% EMEA |
4,420\$m +7%cc |
72% North America |
| Q2: Health care services revenue continues to grow | Same | |||||
|---|---|---|---|---|---|---|
| Q2 2016 US\$ million |
Q2 2015 US\$ million |
Growth in % |
Growth in %cc |
Organic growth in % |
market growth in % |
|
| Total health care | 3,571 | 3,345 | 7 | 8 | 7 | 3 |
| North America | 2,938 | 2,722 | 8 | 8 | 7 | 3 |
| of which Care Coordination | 564 | 468 | 21 | 21 | 17 | n.a. |
| EMEA | 331 | 309 | 7 | 9 | 3 | 3 |
| Asia-Pacific | 177 | 164 | 8 | 2 | 4 | 5 |
| Latin-America | 125 | 1391 | (10)1 | 18* | 19 | 2 |
1 Pro-forma health care services revenue, reflecting sale of Fresenius Medical Care's clinics in Venezuela in July 2015 (\$11 million revenue in Q2 2015).
| Q2 2016 US\$ million |
Q2 2015 US\$ million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Total dialysis products | 849 | 854 | (1) | 2 |
| North America | 230 | 224 | 2 | 2 |
| EMEA | 345 | 359 | (4) | (3) |
| Asia-Pacific | 220 | 212 | 4 | 9 |
| Latin America | 50 | 53 | (5) | 8 |
| Corporate | 4 | 6 | (30) | (31) |
Foreign currency headwinds outside of North America
Savings from the Global Efficiency Program are included
Net income growth based on US\$ 1,057 million in 2015
percentage range for the same period.
Constant currency: Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure "at constant exchange rates" in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term "constant currency," it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage "at constant exchange rates."
We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
| Financial calendar * | ||
|---|---|---|
| Oct 27, 2016 | Report on 3rd quarter 2016 |
|
| Sep 29, 2016 | JP Morgan Investor Forum, Milan | |
| Nov 7, 2016 | Credit Suisse Healthcare Conference, Scottsdale | |
| Nov 14-16, 2016 | BofAML German Corporate Days Asia, Singapore/Hong Kong | |
| Nov 17, 2016 | HSBC Healthcare Day, Frankfurt | |
* Please note that dates and/or participation might be subject to change
FME Investor Relations Else-Kröner-Str. 1 61352 Bad Homburg v.d.H. Germany
Ticker: FME or FMS (NYSE) WKN: 578 580 ISIN: DE00057858002
Head of Investor Relations and Corporate Communications Tel: +49–(0) 6172–609–2601 Email: [email protected]
Director Investor Relations Tel.: +49–(0) 6172–609–2477 Email: [email protected]
Senior Manager Investor Relations Tel.: +49–(0) 6172–609–5216 Email: [email protected]
VP Investor Relations North America Tel: +1– 800–948–2538 Email: [email protected]
London | September 22, 2016
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