Investor Presentation • May 26, 2021
Investor Presentation
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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. Forward -looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or might not even be anticipated. The Company has based these forward -looking statements on current estimates and assumptions which we believe are reasonable and which are made to the best of our knowledge. 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 or competitive conditions, changes in reimbursement, regulatory compliance issues, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, cyber security issues 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) Annual Report on Form 20 -F under the heading "Forward -Looking Statements" and under the headings in that report referred to therein, and in FMC AG & Co. KGaA's other reports filed with the Securities and Exchange Commission (SEC) and the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).
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. The term EMEA refers to the region Europe, Middle East and Africa. Amounts are in Euro if not mentioned otherwise.
Quality remains on a consistently high level
As of March 31, 2021
LEADERSHIP
Our Management Board and top leadership provides the foundation
DATA SCIENTISTS Medical KPIs of more than 50 million treatments monitored and analyzed
55,000 health care professionals2 serving 350,000 patients in 50 countries
PRODUCTION 16,000 employees1 at 45 production sites in more than 20 countries
Our 300+ medical experts use data insights and latest scientific findings
RESEARCH & DEVELOPMENT
1,200 highly qualified team members, 10,000+ patents
1 Full-time equivalents as at Dec. 31, 2019 | 2 Include nurses, patient care technicians and physician services
Global ageing Life expectancy as well as population over 65 significantly higher1,2
Chronic diseases More chronic patients, longer treatment spans3; rising costs of chronic diseases4
Health care staff shortages Global health workforce shortage to
increase further in coming decades
of sustainable solutions
Fragmented care One patient – several conditions – numerous physicians
System limitations System designed for acute, lack of concepts for multimorbid, chronic patients
… disrupts the way we deliver health care today. Big data analytics and artificial intelligence provide new insights. worldwide in many ways. DIGITALIZATION COVID-19 AND
… will affect health care provision
1 Life expectancy has steadily increased for more than 150 years with no sign of deceleration. | 2 Between 2000 and 2030, the population over 65 years will more than double from 0.4 bn to 1.0 bn worldwide (United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Volume II: Demographic Profiles (ST/ESA/SER.A/427)). | 3 The increasing number of elderly citizens will lead to a rise in age-related chronic conditions. As people grow older, they will need to be treated longer for chronic conditions. In developed countries >50% of all people at retirement age suffer from two or more chronic conditions simultaneously. | 4 Chronic diseases worldwide cause ~USD 8,000 billion in cost of illness every year.
KEY DRIVERS FOR OUR CORE DIALYSIS BUSINESS REMAIN INTACT
1 United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Volume II: Demographic Profiles (ST/ESA/SER.A/427) 2 WHO Global Health Observatory (people >18 years of age) | 3 IDF Diabetes Atlas 2019 (9th edition) | 4 FME Long Range Patient Projection
Building out our network and leveraging core competencies by partnerships, investments and acquisitions
Further expand portfolio of critical care products, such as:
Global sustainability program drives strategic efforts to integrate sustainability into our business over three years from 2020-2022: focus on material areas Patients, Employees, Anti-bribery and –corruption, Human/labor rights, Data privacy and security, Environment, Sustainable supply, Occupational health and safety
Management Compensation System 2020+ linked to sustainability targets
XXXXX Long-term focus on activities that support our mission to provide the best possible care and deliver sustainable solutions for ever more patients in diverse health care systems
Global standards defined for patient care, human & labor rights and supplier management
Common responsibilities
New global KPI defined for patient feedback, product quality, sustainable supply, compliance
Measurable progress
100 KPI included in Non-financial Report
Reporting along international standards SASB, TCFD, GRI
Increased disclosure
Ratios based on €-figures according to IFRS. | 2017 – 2019 Excluding IFRS 16 | 2019 – 2020 Including IFRS 16 | 2020 excl. U.S. federal relief funding and advanced payments under the CARES Act | Latest rating update: S&P: May 23, 2019; Moody's: May 4, 2021; Fitch: April 9, 2020
STABLE INVESTMENT-GRADE RATING
Rolling 7-day average of daily new confirmed COVID-19 cases. Left chart: global data of John Hopkins University CSSE COVID-19 Data (April 12, 2021), right chart: FME data based on internal sources
| NORTH AMERICA | EMEA | LATIN AMERICA | ASIA-PACIFIC | |||||
|---|---|---|---|---|---|---|---|---|
| % of patients | Q1 2021 |
Q1 2020 | Q1 2021 |
Q1 2020 | Q1 2021 |
Q1 2020 | Q1 2021 |
Q1 2020 |
| Kt/V ≥ 1.2 | 97 | 97 | 93 | 94 | 91 | 90 | 93 | 94 |
| Hemoglobin = 10–12 g/dl | 69 | 70 | 81 | 82 | 48 | 50 | 50 | 55 |
| Calcium = 8.4–10.2 mg/dl | 81 | 80 | 78 | 79 | 74 | 75 | 71 | 74 |
| Albumin ≥ 3.5 g/dl | 80 | 80 | 90 | 89 | 89 | 90 | 89 | 88 |
| Phosphate ≤ 5.5 mg/dl | 58 | 59 | 79 | 80 | 76 | 76 | 63 | 63 |
| Patients without catheter (after 90 days) |
79 | 81 | 77 | 78 | 78 | 79 | 81 | 83 |
| in days | ||||||||
| Days in hospital per patient year | 9.8 | 10.2 | 7.8 | 7.5 | 4.0 | 4.2 | 3.9 | 2.3 |
Definitions of quality parameters cf. 2020 Annual Report, Section "Non-Financial Group Report"
Last twelve months excess deaths due to COVID-19 were 12,418
Company Presentation May 2021 Page 22
Organic volume growth impacted by COVID-19, as expected
Q1 results adversely affected by exchange rates
Business development supported by improved payor mix driven by Medicare Advantage
Earnings development supported by phasing and expected lower SG&A expense, anticipated to reverse throughout the year
Vaccination accelerated to around 51 percent of patients receiving at least the first dose
Progress on sustainability initiatives reflected in enhanced reporting
Financial targets for FY 2021 confirmed
| Q1 2021 € million |
Q1 2020 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 4,210 | 4,488 | (6) | 1 |
| Operating income | 474 | 555 | (15) | (8) |
| Net income | 249 | 283 | (12) | (6) |
COVID-19 with continued negative effect on top-line and bottom-line growth
cc = at constant currency
| NORTH AMERICA | € million | ||||
|---|---|---|---|---|---|
| Revenue | 2,899 | (9%) | |||
| Organic growth | (1%) |
| EMEA | € million | |||||
|---|---|---|---|---|---|---|
| Revenue | 670 | (1%) | ||||
| Organic growth | 1% |
| ASIA-PACIFIC | € million | ||||
|---|---|---|---|---|---|
| Revenue | 471 | 6% | |||
| Organic growth | 11% |
| LATIN AMERICA | € million | |||
|---|---|---|---|---|
| Revenue | 159 | (5%) | ||
| Organic growth | 15% |
| Revenue | Q1 2021 € million |
Q1 2020 € million |
Growth in % |
Growth in %cc |
Organic growth in % |
Same market treatment growth in % |
|---|---|---|---|---|---|---|
| Health Care Services | 3,325 | 3,595 | (7) | 1 | 1 | (2) |
| North America | 2,643 | 2,908 | (9) | (1) | (1) | (3) |
| EMEA | 332 | 341 | (3) | 1 | 0 | (3) |
| Asia-Pacific | 228 | 218 | 5 | 8 | 10 | 7 |
| Latin America | 115 | 121 | (5) | 18 | 15 | 2 |
cc = at constant currency
| Revenue | Q1 2021 € million |
Q1 2020 € million |
Growth in % |
Growth in %cc |
Organic growth in % |
|---|---|---|---|---|---|
| Health Care Products | 885 | 893 | (1) | 4 | 5 |
| North America | 256 | 278 | (8) | 0 | 0 |
| EMEA | 338 | 338 | 0 | 2 | 2 |
| Asia-Pacific | 243 | 225 | 8 | 11 | 11 |
| Latin America | 44 | 47 | (6) | 14 | 15 |
cc = at constant currency
Operating income in €m, regions exclude Corporate Cost
| Q1 2021 € million |
Q1 2020 € million |
|
|---|---|---|
| Operating cash flow | 208 | 584 |
| in % of revenue | 4.9 | 13.0 |
| Capital expenditures, net | (179) | (280) |
| Free cash flow | 29 | 304 |
| Free cash flow after investing activities | (16) | 272 |
| Current ratings5 | S&P | Moody's | Fitch | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2.6 | 2.3 | 2.1 | 1.8 | 2 3.2 |
2.94 | 3.14 | Rating | BBB | Baa3 | BBB |
| 2.53 | 2.7 | 2.9 | Outlook | stable | stable | stable | ||||
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | Q1 2021 |
||||
| 1 See Chart 40 for a reconciliation of EBITDA │2 Incl. IFRS 16│3 Excl. IFRS 16 4 Excl. U.S. federal relief funding and advanced payments under the CARES Act 5 Latest update: S&P: July 15, 2019; Moody's: May 4, 2021; Fitch: April 9, 2020 |
Special items include costs related to FME25 and effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.
(CAGR, constant currency growth in %)
(CAGR, constant currency growth in %)
It is assumed that FME25 compensates for the anticipated COVID-19 related effects
Special items include costs related to FME25 and effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.
| Q1 2021 € million |
Q1 2020 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 4,210 | 4,488 | (6) | 1 |
| Operating income | 474 | 555 | (15) | (8) |
| Operating income margin in % | 11.3 | 12.4 | ||
| Net interest expense | 76 | 104 | (27) | (22) |
| Income before taxes | 398 | 451 | (12) | (5) |
| Income tax expense | 94 | 100 | (7) | 0 |
| Tax rate in % | 23.6 | 22.3 | ||
| Non-controlling interest | 55 | 68 | (18) | (11) |
| Net income | 249 | 283 | (12) | (6) |
cc = at constant currency
| FY 2020 € million |
FY 2019 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 17,859 | 17,477 | 2 | 5 |
| Operating income | 2,304 | 2,270 | 2 | 4 |
| Operating income margin in % | 12.9 | 13.0 | ||
| Operating income excl. special items / adjusted | 2,499 | 2,356 | 6 | 8 |
| Operating income margin excl. special items / adj. | 14.0 | 13.5 | ||
| Net interest expense | 368 | 429 | (14) | (12) |
| Income before taxes | 1,936 | 1,841 | 5 | 7 |
| Income tax expense | 501 | 402 | 25 | 28 |
| Tax rate in % | 25.9 | 21.8 | ||
| Non-controlling interest | 271 | 239 | 14 | 16 |
| Net income | 1,164 | 1,200 | (3) | (1) |
| Excl. special items / adjusted | 1,359 | 1,236 | 10 | 12 |
cc = at constant currency
| FY 2020 € million |
FY 2019 € million |
Growth in % |
Growth in %cc |
Organic growth in % |
Same market growth in % |
|
|---|---|---|---|---|---|---|
| Total | 14,114 | 13,872 | 2 | 5 | 3 | 2 |
| North America | 11,364 | 11,157 | 2 | 4 | 2 | 1 |
| of which Care Coordination | 1,307 | 1,184 | 10 | 13 | 17 | |
| EMEA | 1,365 | 1,354 | 1 | 4 | 3 | 1 |
| Asia-Pacific | 876 | 862 | 2 | 2 | 3 | 8 |
| of which Care Coordination | 249 | 241 | 3 | 5 | (2) | |
| Latin America | 485 | 499 | (3) | 23 | 15 | 2 |
North America: same market treatment growth relates to growth in the U.S.
| FY 2020 | FY 2019 | Growth | Growth | Organic | |
|---|---|---|---|---|---|
| € million | € million | in % | in %cc | growth in % |
|
| Total Health Care Products | 3,745 | 3,605 | 4 | 7 | 5 |
| Dialysis Products | 3,644 | 3,529 | 3 | 7 | 4 |
| North America | 1,113 | 1,038 | 7 | 9 | 4 |
| EMEA | 1,303 | 1,263 | 3 | 6 | 4 |
| Asia-Pacific | 1,013 | 997 | 2 | 4 | 4 |
| Latin America | 199 | 210 | (5) | 17 | 16 |
| Non-Dialysis Products | 101 | 76 | 34 | 34 | 34 |
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| Q1 2021 € million |
FY 2020 € million |
FY 2019 € million |
|
|---|---|---|---|
| Debt | |||
| Short term debt from unrelated parties | 1,127 | 63 | 1,150 |
| + Short term debt from related parties |
14 | 17 | 22 |
| + Current portion of long-term debt |
785 | 1,008 | 1,447 |
| + Current portion of long-term lease liabilities from unrelelated parties |
617 | 588 | 622 |
| + Current portion of long-term lease liabilities from related parties |
21 | 21 | 17 |
| + Long-term debt, less current portion |
6,315 | 6,800 | 6,458 |
| + Long-term lease liabilities from unrelated parties, less current portion |
3,907 | 3,764 | 3,960 |
| + Long-term lease liabilities from related parties, less current portion |
114 | 119 | 106 |
| Total debt and lease liabilities | 12,900 | 12,380 | 13,782 |
| − Cash and cash equivalents |
(1,073) | (1,082) | (1,008) |
| Total net debt and lease liabilities | 11,827 | 11,298 | 12,774 |
RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA AND NET LEVERAGE RATIO TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| Q1 2021 LTM € million |
FY 2020 € million |
FY 2019 € million |
|
|---|---|---|---|
| Net income | 1,390 | 1,435 | 1,439 |
| + Income tax expense |
494 | 501 | 402 |
| − Interest income |
(48) | (42) | (62) |
| + Interest expense |
388 | 410 | 491 |
| + Depreciation and amortization |
1,575 | 1,587 | 1,553 |
| + Adjustments |
253 | 249 | 110 |
| Adjusted EBITDA (annualized) | 4,052 | 4,140 | 3,933 |
| Net leverage ratio (Net debt/EBITDA) | 2.9 | 2.7 | 3.2 |
Adjustments: Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Amended 2012 Credit Agreement (2021: €6 M), non-cash charges, primarily related to pension expense (2021: €49 M; 2020: €50 M) and impairment loss (2021: €198 M; 2020: €199 M).
| FY 2020 € million |
Q1 2020 € million |
Q2 2020 € million |
Q3 2020 € million |
Q4 2020 € million |
|
|---|---|---|---|---|---|
| Revenue | 17,859 | 4,488 | 4,557 | 4,414 | 4,400 |
| Net income excl. special items | 1,359 | 283 | 351 | 354 | 372 |
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| Q1 2021 € million |
Q1 2020 € million |
|
|---|---|---|
| Revenue | 4,210 | 4,488 |
| Net income | 249 | 283 |
Charts are indicative to illustrate the most important drivers for 2021.
2020 and 2021 negative impact from Latin America impairment
For the years 2015-17 ROIC as reported within the Form-20-F.
| Euro vs. | Q1 2021 | Q1 2020 | FY 2020 | |
|---|---|---|---|---|
| €:\$ | Period end | 1.205 | 1.096 | 1.227 |
| Average | 1.173 | 1.103 | 1.142 | |
| €:CNY | Period end | 7.681 | 7.778 | 8.023 |
| Average | 7.808 | 7.696 | 7.875 | |
| €:RUB | Period end | 88.318 | 85.949 | 91.467 |
| Average | 89.668 | 73.821 | 82.725 | |
| €:ARS | Period end | 108.002 | 70.736 | 102.900 |
| Average | 106.794 | 67.811 | 81.042 | |
| €:BRL | Period end | 6.741 | 5.700 | 6.374 |
| Average | 6.599 | 4.917 | 5.894 | |
| Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|
| 2021 | 77 | 78 | 79 | 79 | 313 |
| 2020 | 77 | 78 | 79 | 79 | 313 |
| 2019 | 76 | 78 | 79 | 80 | 313 |
| 2018 | 77 | 78 | 78 | 80 | 313 |
| 2017 | 77 | 78 | 79 | 79 | 313 |
| 2016 | 78 | 78 | 79 | 79 | 314 |
| 2015 | 76 | 78 | 79 | 79 | 312 |
| cc | Constant currency |
|---|---|
| HD | Hemodialysis |
| PD | Peritoneal dialysis |
| Net income | Net income attributable to shareholders of FME |
| Patients as of March 31, 2021 |
Treatments as of March 31, 2021 |
Clinics as of March 31, 2021 |
Patients as of March 31, 2020 |
Treatments as of March 31, 2020 |
Clinics as of March 31, 2020 |
|
|---|---|---|---|---|---|---|
| North America | 209,279 | 7,926,555 | 2,655 | 213,221 | 8,096,332 | 2,597 |
| Growth in % | (2) | (2) | 2 | 4 | 5 | 1 |
| EMEA | 64,978 | 2,441,914 | 809 | 66,843 | 2,511,370 | 786 |
| Growth in % | (3) | (3) | 3 | 2 | 1 | 1 |
| Asia-Pacific | 33,334 | 1,169,169 | 399 | 31,337 | 1,157,675 | 376 |
| Growth in % | 6 | 1 | 6 | (1) | 4 | (6) |
| Latin America | 36,885 | 1,466,371 | 247 | 37,302 | 1,425,497 | 243 |
| Growth in % | (1) | 3 | 2 | 12 | 11 | 5 |
| Total | 344,476 | 13,004,009 | 4,110 | 348,703 | 13,190,874 | 4,002 |
| Growth in % | (1) | (1) | 3 | 4 | 5 | 1 |
| Revenue | FY 2020 € million |
FY 2019 € million |
Growth in % |
|---|---|---|---|
| Health Care Services | 14,114 | 13,872 | 2 |
| North America | 11,364 | 11,157 | 2 |
| of which Care Coordination | 1,307 | 1,184 | 10 |
| Asia-Pacific | 876 | 862 | 2 |
| of which Care Coordination | 249 | 241 | 3 |
| Revenue | FY 2020 € million |
FY 2019 € million |
Growth in % |
|---|---|---|---|
| Health Care Services | 14,114 | 13,872 | 2 |
| North America | 11,364 | 11,157 | 2 |
| Asia-Pacific | 876 | 862 | 2 |
| Revenue | FY 2020 € million |
FY 2019 € million |
Growth in % |
|---|---|---|---|
| Health Care Products | 3,745 | 3,605 | 4 |
| Dialysis Products | 3,644 | 3,529 | 3 |
| Non-Dialysis Products | 101 | 76 | 34 |
| Revenue | FY 2020 | FY 2019 | Growth |
|---|---|---|---|
| € million | € million | in % | |
| Health Care Products | 3,745 | 3,605 | 4 |
Please note that dates and/or participation might be subject to change
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, Strategic Development & Communications | EVP
+49(0) 6172-609-2601 [email protected]
Director Investor Relations
+49(0) 6172-609-95011 [email protected]
Vice President Investor Relations
+49(0) 6172-609-2477 [email protected]
Senior Manager Investor Relations
+1 860-609-2394 [email protected]
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