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Fresenius SE & Co. KGaA — Call Transcript 2013
Nov 5, 2013
166_ip_2013-11-05_b8a473a4-4504-4ef3-891b-97993c0f9685.pdf
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Conference Call – Q1-3/2013 Results
November 5, 2013
Safe Harbor Statement
This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.
Fresenius Group: Financial Results
| S l a e s |
1 E B I T |
1 i N t e n c o m e |
|
|---|---|---|---|
| / Q 1 3 1 3 - |
€ 1 5 0 3 2 m , |
€ 2 2 0 2 m , |
€ 7 5 3 m |
| h G t t t t r o w a c o n s a n t c u r r e n c y r a e s |
9 % |
1 % |
1 2 % |
| G h l t t t r o w a a c u a t e n e c u r r c y r a s |
7 % |
1 % - |
1 0 % |
1Before one-time items
Fresenius Group: Financial Results by Business Segment
| / Q 1 3 1 3 - |
i F r e s e n s u d i l C M e c a a r e |
i F r e s e n s u b i K a |
i F r e s e n s u l i H e o s |
i F r e s e n s u d V a m e |
|---|---|---|---|---|
| S l a e s G h t o r w |
\$ U S 1 0 7 4 3 m , 6 % |
€ 3 2 7 4 m , % 1 1 |
€ 2 3 5 7 m , 8 % |
€ 6 5 4 m 2 2 % |
| E B I T h G t o r w |
\$ U S 1 5 9 5 m , 4 % - |
€ 6 9 5 m % 1 - |
€ 2 8 2 m 2 2 % |
€ 2 5 m % 4 |
Q3 Business Update
Operations & Markets
North America
- 8% organic sales growth in Q3 exceeding expectations
- Propofol: Maintained 88% IMS market share in September; October shipments >45% over September volumes following de-stocking by U.S. hospitals in August/September
China
-
- 6% volume growth in Q3; ongoing probes at other drug makers tightened market access
- -2% organic sales decline in Q3 reflecting price cuts
-
- Underlying growth drivers intact – government plans to triple health care sector spending by 2020
Asia-Pacific excluding China
-13% organic sales growth in Q3
Q3 Business Update
Operations & Markets
| S b l d l l d H E t t o o v o u m e r e p a c e m e n p r o u c s |
|
|---|---|
| i i S i i l b l i i d i E M A t H E t t t t p o s o n r e m a n s a v a a e n r e s r c e p a e n – - l i f i l d i i b E C i i d t t p o p u a o n s ; n a e c s o n y u r o p e a n o m m s s o n e x p e c e s o o n |
|
| l d b l 3 0 % i i Q 3, 2 0 % Y T D i i i t t t e e o n n o n s a s r u c s a z a ~ ~ - , d i 2 0 1 4 t e p e e n x c |
| b l b F i i i 2 0 1 4 t t a o a e e m s e m e n e n o n m e n n v r r u r v r |
|
|---|---|
| f l 2 0 1 4 D R G -i 2. 8 1 % t n a o r - |
|
| h d f h H i i i i i D R G i 2 0 0 3 t t t t t g e s n c e a s e s n c e n o c o n o e s s e m n r r u y - ( 2 0 3 2. 0 ) 1 % : |
Q3 Business Update
Strategic Initiatives
Acquisition of 43 hospitals from Rhön-Klinikum AG Vast majority of transaction expected to close by end of 2013 Emerging markets expansion Indonesia joint venture – creates market leader in I.V. generics, attractive platform for future Kabi product rollout Promising acquisition pipeline to expand presence in fastgrowing markets HELIOS hospital Rhön hospital
Group Financials Q1-3/13 − Outlook 2013
Fresenius Group: Profit and Loss Statement
| € m |
Q / Q / 3 1 3 1 3 1 3 - |
G h Q t r o w |
/ 3 1 3 Y Y o |
|
|---|---|---|---|---|
| l t a c u a t r a e s |
t t c o n s a n t r a e s |
|||
| S l e a s |
0 5 4 5 , |
0 3 2 1 5 , |
% 4 |
9 % |
| 1 E B I T |
7 5 4 |
2 2 0 2 , |
4 % - |
0 % |
| N i t t t e n e e s r |
3 6 1 - |
9 4 4 - |
9 % 1 |
% 1 4 |
| I t n c o m e a x e s |
1 7 3 - |
4 9 6 - |
3 % |
3 % - |
| 2 N i t e n c o m e |
2 7 1 |
3 7 5 |
9 % |
2 % 1 |
1 2013 adjusted for Fenwal integration costs (Q3: €7 million; Q1-3: €34 million)
Net income attributable to shareholders of Fresenius SE & Co. KGaA, 2013 adjusted for Fenwal integration costs (Q3: €6 million; Q1-3: €26 million), 2012 adjusted for investment gain of €34 million at Fresenius Medical Care and for one-time costs related to the offer to RHÖN-KLINIKUM AG shareholders (Q3: €5 million; Q1-3: €31 million).
Fresenius Kabi: EBIT Margin Fully in Line with Guidance
| € m |
Q / 1 3 1 3 - |
Q / 1 3 1 2 - |
G h t r o w |
|---|---|---|---|
| E o p e u r M i a g n r |
2 5 5 1 6. 7 % |
2 8 4 1 9 6 % |
1 0 % - |
| h N A i t o m e c a r r M i a g n r |
4 3 0 3 7. 1 % |
3 7 7 4 1. 4 % |
1 4 % |
| f f i i i / i i / i A P L t A A s a a c c a n m e c a c a r r - M i a r g n |
8 0 1 1 7. 0 % |
2 3 1 2 1. 2 % |
% 1 5 - |
| d & C C R D t t o r p o r a e a n o r p o r a e |
0 1 7 - |
1 7 4 - |
% 2 |
| ( ) l i l. l T E B I T F t o a n c e n a w M i a r g n |
6 9 5 % 1 8 6 |
7 0 0 % 2 0 8 |
% 1 - |
| ( ) l l. l T E B I T F t o a e c e n a x w M i a r g n |
6 6 8 1 9 6 % |
7 0 0 2 0 8 % |
% 5 - |
Q1-3/13 EBIT excluding Fenwal integration costs of €34 million.
Analyst Conference Call – Q1-3/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 5, 2013
Fresenius Helios: Excellent Sales and EBIT Growth
| € m |
Q / 1 3 1 3 - |
Q / 1 3 1 2 - |
G h t r o w |
|---|---|---|---|
| T l l t o a s a e s |
2 3 5 7 , |
2 3 4 7 , |
8 % |
| E B I T |
|||
| b l h d l f l E i i i i t t s a s e c n c p o r o o i M a r g n |
2 9 7 1 1. 5 % |
2 3 4 1 0. 0 % |
9 % 1 |
| / A i i i D i i t t t c q u s o n s v e s u r e s ( l d / d l d ) i t i i t i 1 < c o n s o a o n e c o n s o a o n y r |
3 | 2 - |
|
| T l E B I T t o a |
2 8 2 |
2 3 2 |
2 2 % |
| M i a r g n |
% 1 1. 1 |
% 9 9 |
Cash Flow Development
| € m |
C O i F t p e r a n g |
( ) C t a p e x n e |
1 h F l s o w |
||||
|---|---|---|---|---|---|---|---|
| / Q 3 1 3 |
L T M M i a r g n |
/ Q 3 1 3 |
L T M M i a r g n |
/ Q 3 1 3 |
L T M M i a r g n |
||
| 6 5 |
9 % 1 |
7 1 - |
6 % 1 - |
6 - |
3 0 % |
||
| 1 0 6 |
7 9 % |
3 5 - |
5 1 % - |
7 1 |
3 8 2 % |
||
| 6 1 - |
8 % 4 - |
3 - |
1 3 % - |
1 9 - |
6 1 % - |
||
| / Co te rp or a O he t r |
6 | / n a |
2 - |
/ n a |
4 | / n a |
|
| l. C F M ex c |
1 6 1 |
2 9 % 7 |
1 1 1 - |
% 5 4 - |
0 5 |
2 2 % 5 |
|
| Gr ou p |
6 1 9 |
% 1 0 9 |
2 4 3 - |
% 5 2 - |
3 7 6 |
% 5 7 |
1 Before acquisitions and dividends
2 Incl. FMC dividend
3 Understated: 3.8% excluding €34 million of capex commitments from acquisitions
Fresenius Group: Financial Outlook by Business Segment Fully Confirmed
| P i r e o s v u |
N e w |
||
|---|---|---|---|
| i F r e s e n u s K b i a |
S l h t a e s g r o w c c l h S t i a e s g o r w o g a n r c E B I T i l. l F m a r g n e x c e n w a E B I T i l. l i F m a g n r n c e n w a |
2 % % 1 1 4 – 3 % 5 % – 9 % 2 0 % 1 – 1 8 % 1 9 % – |
|
| F i r e s e n s u l i H e o s |
S l h t i a e s g r o w o r g a n c E B I T |
3 % % 5 – € 3 7 0 € 3 9 5 m – |
h l f f p p e a o a n g e u r r |
| F i r e s e n u s V d a m e |
S l h t e g o a s r w h E B I T t g r o w |
8 % 1 2 % – 5 % 1 0 % – |
f d p p e e n o n g e u r r a |
2013 Fresenius Kabi EBIT guidance excluding Fenwal integration costs (~€50 million).
Fresenius Group: Outlook Fully Confirmed
| h R t e e n e g o v u r w t t t a c o n s a n c e n c u r r y |
% 0 % 7 1 ‒ |
|
|---|---|---|
| 1 h N i t t e n c o m e g o r w t t t a c o n s a n c e n c u r r y |
1 1 % 1 4 % ‒ |
1 Net income attributable to shareholders of Fresenius SE& Co.KGaA; 2013 adjusted for Fenwal integration costs (~€50 million pre-tax); 2012 adjusted for a non-taxable investment gain of €34 million and other one-time costs of €17 million at Fresenius Medical Care and for one-time costs of €29 million related to the offer to RHÖN-KLINIKUM AG shareholders.
Attachments
Fresenius Group:
Overview – Calculation of Noncontrolling Interest
| € m |
/ Q 1 3 1 3 - |
/ F Y 1 2 |
|---|---|---|
| f b d l l E i i i t t t t a n n g s e o e a a n n o n o n o n g n e e s r r x c r r |
9 1 7 1 , |
2 3 9 1 , |
| T a e s x |
4 8 8 - |
6 5 9 - |
| l l h f N i i t t t, t o n c o n r o n g n e r e s e r e o |
5 0 4 - |
8 0 6 - |
| d l F i M i C i t t r e s e n u s e c a a r e n e n c o m e n o b b l ( / ) i F i Q 3 1 3 6 9 % t t t t a a e o e s e n s r u r u : ~ |
3 9 9 - |
6 3 9 - |
| l l h l d d l C N t i i t t i F i M i o n c o n r o n g n e r e s o e r s n r e s e n u s e c a a r e \$ \$ ( / / d F Y 2 0 1 2 U S 1 4 0 Q 3 2 0 1 3 U S 3 3 i m m a c c o n g : : r , d l 's l ) F i M i C F i i S t t t t o e s e n s e c a a e n a n c a a e m e n s r u r |
8 7 - |
0 9 1 - |
| l l h l d b N t i i t t i F i K i o n c o n r o n g n e r e s o e r s n r e s e n u s a ( ), l ( ) d d € 1 9 F i H i € 4 t m r e s e n u s e o s m a n u e o - - d 's l h ( ) F i V 2 3 % i € 4 t e s e n s a m e e e n a o n e s p m r u x r w r - |
2 7 - |
8 5 - |
| b b l i i i S & C G N t t t t t F E K A e n c o m e a a e o e s e n s o a r u r u |
2 7 7 |
9 2 6 |
Fresenius Group: Cash Flow
| € m |
Q / 3 1 3 |
M M L T i a r g n |
Q / 3 1 2 |
M M L T i a r g n |
G h Y t r o w Y o |
|---|---|---|---|---|---|
| O i C h F l t p e r a n g a s o w |
9 6 1 |
0 9 % 1 |
6 7 1 |
2 % 1 7 |
8 % - |
| C ( ) t a p e x n e |
2 4 3 - |
5 2 % - |
2 0 6 - |
4 6 % - |
1 8 % - |
| C h l F F r e e a s o w ( b f d d d d ) i i i i i t e o e a c q s o n s a n e n s r u v |
3 7 6 |
% 5 7 |
4 6 5 |
% 8 1 |
% 1 9 - |
| A i i t i ( ) t c q u s o n s n e |
3 0 5 - |
9 7 - |
n a |
||
| d d D i i e n s v |
2 1 - |
3 7 - |
6 8 % |
||
| C h l F F r e e a s o w ( f d d d d ) i i i i i t t a e a c q s o n s a n e n s r u v |
5 9 |
% 1 4 - |
3 3 1 |
% 5 6 - |
% 8 2 - |
Cash Flow Development LTM
| € m |
O i C F t p e r a n g |
( ) C t a p e x n e |
1 C F h F l r e e a s o w |
|||
|---|---|---|---|---|---|---|
| L T M Q 3 / 3 1- 1 |
L T M M in a rg |
L T M Q 3 / 3 1- 1 |
L T M M in a rg |
L T M Q 3 / 3 1- 1 |
L T M M in a rg |
|
| 4 4 7 |
9 1 % |
2 9 8 - |
6 1 % - |
9 1 4 |
3 0 % |
|
| 2 6 9 |
7 9 % |
1 7 4 - |
5 1 % - |
9 5 |
3 2 8 % |
|
| 6 4 - |
8 % 4 - |
3 1 - |
3 % 1 - |
9 5 - |
6 % 1 - |
|
| / Co te rp or a O he t r |
1 2 - |
/ n a |
1 2 - |
/ n a |
2 4 - |
/ n a |
| l. F M C ex c |
6 5 8 |
2 % 7 9 |
4 9 7 - |
% 5 4 - |
1 6 1 |
2 % 2 5 |
| Gr ou p |
2 1 9 7 , |
1 0 9 % |
1 0 4 7 - , |
5 2 % - |
1 1 5 0 , |
5 7 % |
1 Before Acquisitions and Dividends
2 Incl. FMC dividend
3 Understated: 3.8% excluding €34 million of capex commitments from acquisitions
Margin = in % of sales
Fresenius Group: Debt and Interest Ratios
1Pro forma Fenwal
- 2 Adjusted for one-time costs (-€1 million) related to the offer to the shareholders of RHÖN-KLINIKUM AG, for other one-time costs (€86 million) at Fresenius Medical Care as well as one-time integration costs (€34 million) at Fenwal
- 3Pro forma including Liberty Dialysis Holdings, Inc., Damp Group, and Fenwal
4Adjusted for one-time costs (€6 million) related to the offer to the shareholders of RHÖN-KLINIKUM AG and for other one-time costs (€86 million) at Fresenius Medical Care.
Fresenius Kabi: Organic Sales Growth at Upper End of Guidance
| € m |
/ Q 1 3 1 3 - |
/ Q 1 3 1 2 - |
O i r g a n c G h t r o w |
|---|---|---|---|
| E o p e u r |
2 1 5 4 , |
9 1 4 4 , |
2 % |
| h i N t A o m e c a r r |
1 1 8 5 , |
9 1 0 |
% 7 |
| f A i P i i s a a c c - |
6 8 9 |
6 4 2 |
6 % |
| / f L i A i A i t a n m e r c a r c a |
3 7 1 |
3 6 2 |
8 % |
| T l l t o a s a e s |
3 2 7 4 , |
3 3 3 6 , |
% 5 |
Fresenius Kabi: Organic Sales Growth at Upper End of Guidance
| € m |
Q / 1 3 1 3 - |
Q / 1 3 1 2 - |
O i r g a n c G h t r o w |
|---|---|---|---|
| f h I i T n u s o n e r a p y |
7 4 1 |
7 5 4 |
3 % |
| I. V D r u g s |
3 0 8 1 , |
2 3 1 7 , |
6 % |
| C l l i i N i i t t n c a o n u r |
9 9 5 |
9 8 4 |
% 4 |
| d l / M i D i e c a e c e s v f h l i T T a n s s o n e c n o o g r u y |
6 9 8 |
3 2 5 |
% 5 |
| T l l t o a s a e s |
3 7 4 2 , |
3 3 6 3 , |
5 % |
Fresenius Helios: Strong Organic Sales Growth
| € m |
/ Q 1 3 1 3 - |
/ Q 1 3 1 2 - |
G h t r o w |
|---|---|---|---|
| f b l i h d l i i l i E t t s a s e c n c p o o o r |
2 4 2 4 , |
2 3 4 0 , |
4 % |
| i i i A t c q s o n s ( l d ) u i i 1 t < c o n s o a o n y r |
1 1 3 |
||
| D i i t t e s e s ( d l i d i ) v u r t 1 < e c o n s o a o n y r |
7 | ||
| T l l t o a s a e s |
2 5 3 7 , |
2 3 4 7 , |
8 % |
Fresenius Helios: Performance Indicators
| / Q 1 3 1 3 - |
/ Q 1 3 1 2 - |
C h a n g e |
|
|---|---|---|---|
| 1 f h l N i t o o o s p a s l A i i t e a e n s c u c r c c - l P i i t- t o s a c u e c a r e c n c s - |
7 4 5 1 2 3 |
2 7 5 0 2 2 |
3 % 2 % 5 % |
| 1 f b d N o o e s l A i i t c e c a e c n c s u r - l P i i t- t o e e n s a c u c a r c c s - |
2 3 2 9 5 , 1 8, 9 1 2 4, 6 1 7 |
2 3 2 8 6 , 1 8, 7 0 1 4, 5 8 5 |
% 1 1 % 1 % |
| d i i A m s s o n s ( ) A i i t t t c e c a e n p a e n u r - |
5 6 8, 3 0 7 |
5 4 3, 3 1 3 |
5 % |
| O c c p a n c u y P t- t o s a c u e c a r e - |
8 % 4 |
8 % 5 |
|
| l h f ( d ) A t t e a g e e n g o s a a s v r y y A t c u e c a r e - P t- t o s a c e c a e u r - |
6. 6 2 8 6. |
6. 7 2 2 7. |
1Dec 31, 2012
Analyst Conference Call – Q1-3/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 5, 2013
Fresenius Helios: Sales Influence Hospital Acquisitions / Divestitures
| A i i i t c q u s o n s |
A l i n n u a z e |
d l s a e s |
|---|---|---|
| ( l. G i D W a m p o p e c s m a r u x r d d b f l ), i i t e s e e o e c o s n g v r h N G t o e n e m a n r r r y |
€ 4 2 7 m ~ |
l d d f h i M 3 1 2 0 1 2 t c o n s o a e a s o a c r , |
| l f h H i W i ü t t o s p a p p e r r , h h h l N R i W i t t o r n e e s p a a - |
€ 2 0 m ~ |
l d d f 2 0 3 i J 1 1 t c o n s o a e a s o a n u a r y , |
Fresenius Vamed: Excellent Sales Growth
| € m |
/ Q 1 3 1 3 - |
/ Q 1 3 1 2 - |
G h t r o w |
|---|---|---|---|
| b P j i t r o e c u s n e s s |
3 3 2 |
2 8 5 |
6 % 1 |
| S i b i e c e s n e s s r v u |
3 2 2 |
2 5 1 |
2 8 % |
| l l T t o a s a e s |
6 5 4 |
5 3 6 |
% 2 2 |
| T l E B I T t o a i M a r g n |
2 5 3 8 % |
2 4 % 4 5 |
4 % |
| 1 O d i k t r e r n a e |
3 8 0 |
3 2 2 |
% 1 8 |
| 1 O d b k l r e r a c o g |
1 0 3 4 , |
2 9 8 7 |
% 5 |
1Project business only
2December 31, 2012
Fresenius Group: Key Figures According to IFRS
| € m |
/ Q 1 3 1 3 - S G U A A P |
/ Q 1 3 1 3 - S I F R |
|---|---|---|
| l S a e s |
1 5 0 3 2 , |
1 5 1 8 7 , |
| 1 E B I T |
2 2 0 2 , |
2 1 6 0 , |
| N i t t t e n e r e s |
4 4 9 - |
4 4 9 - |
| 2 N i t e n c o m e |
2 7 7 |
7 0 0 |
| 3 N i t e n o m e c |
3 7 5 |
7 2 6 |
| f O C h l i t p e a n g a s o r w |
6 6 1 5 , |
1 5 7 5 , |
| l h l B t t t a a n c e s e e o a |
3 0 6 8 7 , |
3 0 8 0 0 , |
1Adjusted for one-time integration costs of Fenwal
Net income attributable to shareholders of Fresenius SE & Co. KGaA
3Net income attributable to shareholders of Fresenius SE & Co. KGaA, adjusted for one-time integration costs of Fenwal
Analyst Conference Call – Q1-3/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 5, 2013
Share Information
Share key facts
Number of shares1 178,839,237 Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de
WKN / ISIN 578560 / DE0005785604
ADR key facts
Ticker symbol FSNUY Exchange OTC-market Depositary bank Deutsche Bank
Ratio 8 ADRs = 1 ordinary share ADR CUSIP / ISIN 35804M105 / US35804M1053 Structure Sponsored Level I ADR
1As of September 30, 2013
Financial Calendar 2014
| 2 5 0 2 2 0 1 4 |
l R F i Y 2 0 1 3 t e p o o n s c a e a r r |
|---|---|
| 0 6 0 5 2 0 1 4 |
t R 1 Q 2 0 1 4 t t s e p o o n a e r u r r |
| 1 6 0 5 2 0 1 4 |
l l k f / A G M i F M i t t n n a e n e a e e n g a n a n u r r u r , |
| 0 5 0 8 2 0 1 4 |
t h l f R 1 2 0 1 4 t s e p o o n a r |
| 0 4 1 1 2 0 1 4 |
d t R 1 3 2 0 1 4 t t s r e p o r o n q u a r e r – |
Please note that these dates could be subject to modifications.
Contact
| d B i i G t r g r u n |
l S V P I R i F i S E & C K G A t t n v e s o r e a o n s r e s e n u s o a |
|---|---|
| l h T e e p o n e : l i e -m a : |
9 6 2 6 0 8 2 8 4 1 7 4 5 + - f G d @ B i i i t. g n e s e n s c o m r r u r u |
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