Investor Presentation • Sep 30, 2014
Investor Presentation
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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.
1 – Net income incl. attributable to non-controlling interest, before one-time items
Market Cap.5 €16.9 bn
1 – Before special items
2 – 2013 excluding Fenwal integration costs of €54 million
2009 2010 2011 2012 20133 – Incl. attributable to non-controlling interest; 2013 excluding Fenwal integration costs of €40 million
Goldman Sachs 2014 EMEA Leveraged Finance Conference, September 30, 2014 © Copyright Page 8 4 – 2011 sales were adjusted by -€161m according to a U.S. GAAP accounting change. This solely relates to Fresenius Medical Care North America
Fresenius Kabi
Fresenius Vamed
25%
Goldman Sachs 2014 EMEA Leveraged Finance Conference, September 30, 2014 © Copyright Page 10
June2014
| S l a e s |
1 E B I T |
2 N i t e n c o m e |
|
|---|---|---|---|
| / 2 0 H 1 1 4 |
€ 0 3 3 1 7 m , |
€ 0 3 1 4 m , |
€ 8 8 7 m |
| G h t t t t o a c o n s a n r w t c e n c a e s u r r y r |
2 % 1 |
0 % |
% 1 - |
| h l G t t t r o w a a c u a t c u r r e n c y r a e s |
% 7 |
3 % - |
3 % - |
1 - 2014 before integration costs (Fenwal: €3 million; acquired Rhön hospitals: €8 million) and disposal gains (two Helios hospitals: €22 million; Rhön stake: €35 million); 2013 before integration costs (Fenwal: €27 million)
2 - 2014 before integration costs (Fenwal: €2 million; acquired Rhön hospitals: €6 million) and disposal gains (two Helios hospitals: €21 million; Rhön stake: €34 million); 2013 before integration costs (Fenwal: €20 million)
| / H 1 2 0 1 4 |
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 e a s G h t o r w |
\$ 7 3 9 8 m , % 5 |
€ 2 6 6 4 m , 2 % - |
€ 2 2 5 1 m , 9 % 4 |
€ 3 9 8 m % 5 - |
| E B I T h G t o r w |
\$ 1 0 0 1 m , 4 % - |
1 € 1 1 4 m 1 2 % - |
2 € 2 0 5 m 4 0 % |
€ 1 5 m 0 % |
1 – 2014 before integration costs of (Fenwal: €3 million); 2013 before integration costs (Fenwal: €27 million)
2 – 2014 before integration costs (acquired Rhön hospitals: €8 million) and disposal gains (two Helios hospitals: €22 million; Rhön stake: €35 million)
~6% global patient growth p.a. ~3.8 million patients by 2020 expected
Patients in million
| \$ i l l i € i l l i m o n m o n |
/ Q / H 1 2 2 0 0 1 3 1 1 4 |
/ Q / H 1 2 0 2 0 3 1 2 1 1 |
G h G h t t r o r o w w |
|---|---|---|---|
| l S l T t o a a e s |
7 3 9 8 , |
7 0 7 6 , |
1 % 5 + |
| E B I T D A |
1 3 3 7 , |
1 3 5 3 , |
% 1 - |
| E B I T D A i m a r g n |
8 % 1 1 |
9 % 1 1 |
|
| E B I T |
0 0 1 1 , |
0 3 8 1 , |
% 4 - |
| i E B I T m a r g n |
% 1 3 5 |
% 1 4 7 |
|
| N i t e n c o m e |
2 3 9 4 |
8 8 4 |
3 % 1 0 - |
1 – 4% organic growth, 2% acquisitions , -1% currency effect# 3 – -6% before a one-time special tax effect of \$18 million
2 – \$457 million before a one-time special tax effect of \$18 million
| i l l i € m o n |
/ H 1 2 0 1 4 |
/ H 1 2 0 1 3 |
G h t r o w |
|---|---|---|---|
| S l a e s |
2 4 6 6 , |
2 9 5 1 , |
2 2 % - |
| f h I i T n s o n e a p u r y - I. V D r u g s - C l l i i N i i t t n c a u r o n - d i l i / M D e c a e v c e s - f h l T i T a n s s o n e c n o o g r u y |
4 7 6 8 6 8 6 6 2 4 6 0 |
5 0 0 8 9 3 6 6 3 4 6 3 |
5 % - 3 % - 0 % 1 % - |
| 1 E B I T D A E B I T D A i m a r g n |
5 1 3 % 2 0 8 |
5 7 5 % 2 2 8 |
% 1 1 - |
| 1 E B I T i E B I T m a r g n |
4 1 1 % 1 6 7 |
9 4 6 % 1 8 6 |
2 % 1 - |
| 1 N i t e n c o m e |
2 1 7 |
2 4 2 |
1 0 % - |
1 – before Fenwal integration costs
2 – 2% organic growth, -5% currency effect, 1% acquisitions
2013 Sales: €3,393 m; EBIT: €390 m
| € i l l i m o n |
/ H 1 2 0 1 4 |
/ H 1 2 0 1 3 |
G h t r o w |
|---|---|---|---|
| S l a e s |
2 2 5 1 , |
9 1 6 5 , |
3 9 % 4 + |
| 1 E B I T D A |
3 4 4 |
2 3 5 |
% 4 6 + |
| E B I T D A i m a r g n |
1 3 6 % |
1 3 9 % |
|
| 1 E B I T |
2 5 0 |
1 7 9 |
4 0 % + |
| E B I T i m a r g n |
9 9 % |
0 % 1 6 |
|
| 2 N i t e n c o m e |
1 9 7 |
1 1 9 |
0 % 5 + |
1 – 2014 before integration costs (€8 million) and disposal gains (two Helios hospitals: €22 million; Rhön stake: €35 million)
2 – 2014 before integration costs (€6 million) and disposal gains (two Helios hospitals: €21 million; Rhön stake: €34 million)
3 – 3% organic growth, 48% acquisitions, -2% divestitures
650 health care projects in 72 countries successfully completed
1 – Before special items
| i l l i € m o n |
/ H 1 2 0 1 4 |
/ H 1 2 0 1 3 |
C h a n g e l t a c a u t a e s r |
C h a n g e t t c o n s a n t a e s r |
|---|---|---|---|---|
| S l a e s |
1 0 7 3 3 , |
9 9 8 7 , |
1 % 7 + |
% 1 2 + |
| 2 E B I T D A |
8 1 5 4 , |
8 0 1 6 , |
0 % |
3 % + |
| 2 E B I T |
1 4 0 3 , |
1 4 4 8 , |
% 3 - |
% 0 |
| I t t, t n e r e s n e |
2 8 3 - |
3 1 3 - |
1 0 % + |
6 % + |
| 2 E B T |
2 0 1 1 , |
3 1 1 5 , |
% 1 - |
% 1 + |
| T a x e s |
3 3 2 - |
3 2 3 - |
3 % - |
% 7 - |
| 3, 4 N i t e n c o m e |
7 8 8 |
8 1 2 |
% 3 - |
% 1 - |
| l E m p o e e s y |
2 0 9 9 3 3 , |
5 1 7 3 3 2 5 , |
1 – 3% organic growth, 9% acquisitions, -5% currency effect
4 – incl. attributable to non-controlling interest 5 – as of June 30, 2013
2 – 2014 before integration costs (Fenwal: €3 million; acquired Rhön hospitals: €8 million) and disposal gains (two Helios hospitals: €22 million; Rhön stake: €35 million); 2013 before integration costs (Fenwal: €27 million)
3 – 2014 before integration costs (Fenwal: €2 million; acquired Rhön hospitals: €6 million) and disposal gains (two Helios hospitals: €21 million; Rhön stake: €34 million); including a tax impact of \$18 million at Fresenius Medical Care in 2014; 2013 before integration costs (Fenwal: €20million)
| € m |
O i C F t p e r a n g |
( ) C t a p e n e x |
1 C h l F F r e e a s o w |
|||
|---|---|---|---|---|---|---|
| / L T M H 1 1 4 |
L T M M in a rg |
/ L T M H 1 1 4 |
L T M M in a rg |
/ L T M H 1 1 4 |
L T M M in a rg |
|
| 6 4 5 |
9 % 4 |
3 3 5 - |
6 8 % - |
3 0 1 |
2 6 % |
|
| 3 8 3 |
9 1 % |
2 0 4 - |
4 9 % - |
1 7 9 |
3 4 2 % |
|
| 3 4 - |
3 % 4 - |
0 1 - |
0 % 1 - |
4 4 - |
% 4 4 - |
|
| Co / te rp or a O he t r |
7 | / n a |
6 - |
/ n a |
1 | / n a |
| l. F M C ex c |
8 2 1 |
2 8 8 % |
5 5 5 - |
% 5 4 - |
2 6 6 |
2 3 % 4 |
| Gr ou p |
2 1 2 3 , |
% 1 0 1 |
1 1 6 3 - , |
% 5 5 - |
9 6 0 |
% 4 6 |
1 – Before Acquisitions and Dividends
2 – Incl. FMC dividend
3 – Understated: 5.3% excluding €44 million of capex commitments from acquisitions
Goldman Sachs 2014 EMEA Leveraged Finance Conference, September 30, 2014 © Copyright Page 26
Margin = in % of sales
2 – Pro forma incl. APP Pharmaceuticals Inc., before APP-transaction related special items
3 – Pro forma incl. Damp Group, Liberty Dialysis Holdings, Inc. and Fenwal, adjusted for €6 million one-time costs related to the 2012 takeover offer to Rhön-Klinikum AG shareholders as well as for €86 million other one-time costs at FME
4 – Pro forma excluding advances made for the acquisition of hospitals and outpatient facilities of Rhön-Klinikum AG; before Fenwal integration costs
5 – Pro forma including acquired hospitals from Rhön-Klinikum. Before integration costs for Fenwal and disposal gains from the divestment of two Helios hospitals
6 – Pro forma including acquired Rhön hospitals and excluding two Helios hospitals; before integration costs (Fenwal; acquired Rhön hospitals) and disposal gains (two Helios hospitals; Rhön stake)
3 Controlling stake
4 As held by Fresenius ProServe GmbH, a wholly owned subsidiary of Fresenius SE & Co. KGaA, which provides the guarantees
| in illi € m on |
in \$ illi m on |
% f t al ot o ca p |
LT M EB IT DA Q 2 20 14 x |
|
|---|---|---|---|---|
| FS E 2 01 3 Cr dit A : T Lo A ( €, U S- \$ ) nt e g ree me er m an |
1, 87 5 |
2, 41 0 |
4. 1% |
|
| dit ( \$ ) FS E 2 01 3 Cr A nt : T Lo B €, U S- e g ree me er m an |
6 6 2 |
85 1 |
1.4 % |
|
| 8.7 5 0 % d 9. 0 0 0 % Se nio r N du 20 15 ( €, U S- \$ ) ote an s e |
6 34 |
81 5 |
1.4 % |
|
| du 4.2 5 0 % Se nio r N ote 20 19 s e |
5 0 0 |
64 3 |
1.1 % |
|
| 2.3 % Se nio du 20 19 75 r N ote s e |
29 9 |
3 84 |
0. 6 % |
|
| du 2.8 75 % Se nio r N ote 20 20 s e |
5 0 0 |
64 3 |
1.1 % |
|
| 3. 0 0 0 % Se nio du 20 21 r N ote s e |
44 5 |
2 57 |
1.0 % |
|
| 4.2 5 0 % Se nio r N du 20 21 ote s e |
21 8 |
28 0 |
0.5 % |
|
| 4.0 0 0 % Se du 20 24 nio r N ote s e |
3 45 |
8 2 5 |
1.0 % |
|
| Co i b le Bo ds ert nv n |
45 6 |
5 8 6 |
1.0 % |
|
| Co l P ia mm erc ap er |
43 0 |
3 55 |
0. 9 % |
|
| Eu No tes ro |
95 9 |
1, 23 2 |
2. 1% |
|
| Ot he de bt, g ros s r |
34 5 |
6 8 6 |
1.2 % |
|
| ( ), To l D eb FS E e l. FM C ta t xc g ro ss |
7, 96 5 |
10 23 6 , |
.2% 17 |
|
| h ( l. F ) Ca MC s ex c |
5 9 8 |
76 8 |
1.3 % |
|
| ( C ), To ta l d eb t FS E e l. FM t xc ne |
7, 36 7 |
9, 46 7 |
15 .9% |
|
| 1 l F de bt, To ta MC t ne |
6, 0 9 0 |
7, 8 26 |
13 .2% |
|
| To ta l c lid at ed d eb t, t on so ne |
13 45 7 , |
17 29 4 , |
29 .1% |
3. 4x |
| 2 ke liza Ma t c ita tio r ap n |
3 2, 81 3 |
42 16 8 , |
70 .9 % |
8.4 5x |
| To l c ita liz ion ta at ap |
46 27 0 , |
59 46 2 , |
10 0. 0% |
11 .9x |
| 3 FS E G E BI TD A ro up |
3, 88 2 |
1 - Net of Cash and intercompany adjustments
2 - Based on market capitalization for FSE and FMC as of September 19, 2014
3 - Before integration costs (Fenwal: €3 million; acquired Rhön hospitals: €8 million)and disposal gains (two HELIOS hospitals: €22 million; Rhön stake: €35million)
4 - Pro forma including Rhön hospitals and excluding two Helios hospitals
1 – based on utilization of major long-term financing instruments
1 – based on utilization of major long-term financing instruments
| R d t e p o r e 2 0 1 3 |
G i d u a n c e 2 0 1 4 |
|
|---|---|---|
| S l |
\$ 1 4 6 1 0 |
\$ 1 5 2 0 0 ~ |
| a e s |
, | , |
| N I t e n c o m e |
\$ 1, 1 1 0 |
\$ b 1 0 1 0 5 n - |
| D b / E B I T D A t e |
2 8 x |
3 0 x ~ |
| O l d |
N e w |
||
|---|---|---|---|
| i F r e s e n u s K b i a |
l h S t i a e s g r o w o g a n c r E B I T i m a g n r |
4 % 6 % – 1 6 5 % 1 8 % – |
|
| F i r e s e n u s 1 H l i e o s |
S l h t i a e s g r o w o g a n c r l b d S i i i t t a e s c o n o n a c q e r u u r h l i t o s p a s l h d S i t a e s g o a c q e r w u r h l i t i o s p a s o r g a n c l h h l E B I T H i R ö i t + e o s n o s p a s |
3 % % 5 – |
b € 1 8 n ~ 3 % 5 % – € 5 4 0 5 6 0 m – |
| F i r e s e n s u d V a m e |
S l h t i a e s g r o w o g a n c r h E B I T t g o r w |
% 0 % 5 1 – 5 % 1 0 % – |
1 – Before integration costs for acquired hospitals and disposal gains (two HELIOS hospitals; Rhön stake )
| O l d |
1 N e w |
|
|---|---|---|
| h R t e v e n u e g r o w t t t a c o n s a n c e n c u r r y |
1 2 % 1 5 % ‒ |
1 4 % 1 6 % ‒ |
| 2 h N i t t e n c o m e g o r w t t t a o n s a n e n c c u r r c y |
2 % % 5 ‒ |
|
| d b / N E B I T D A t t e e |
3 0 3 2 5 x ‒ |
3 2 5 x ~ |
1 –Following acquisitions at Fresenius Medical Care
2 Net income attributable to shareholders of Fresenius SE& Co.KGaA before integration costs (Fenwal; acquired Rhön hospitals) and disposal gains (two HELIOS hospitals; Rhön stake). Guidance includes acquired Rhön hospitals
World population aged 60+ will more than double by 2050 to >2 bn (OECD)
Increasing health care coverage and per capita spending (e.g. India: \$59, China: \$278, vs. USA: \$8,608; WHO)
Approx. \$19 bn branded IV drug sales (base: 2013) go off-patent in the U.S. by 2023
Further privatization of German hospital market Global opportunity to provide dialysis services (e.g. China, India)
Fresenius Group: Attractive Mid-Term Growth Prospects
New Stretch Target > €30 billion sales€1.4 to €1.5 billion net income1by 2017
Strong and Balanced Health Care Portfolio
1 – excl. attributable non-controlling interest
Leading market positions
Diversified revenue base with four strong business segments
Global presence in growing, non-cyclical markets
Proven ability to integrate acquisitions
Clear track record of and commitment to de-leveraging
Strong financial performance and cash flow generation
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