Fresenius Medical Care AG 6-K, filed Oct 29, 2020
Fresenius Medical Care AG (FMS)
About this 6-K
Fresenius Medical Care AG filed this 6-K on October 29, 2020.
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 October 2020
Commission file number: 001-32749
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 ¨ |
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): ____
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): ____
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 ¨ | No x |
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82
On October 29, 2020, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its third quarter results for the period ending September 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 third quarter 2020 consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measures, including (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) delivered operating income (earnings before interest and taxes), (c) free cash flow, (d) net leverage ratio (ratio of net debt to adjusted EBITDA) and (e) 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.
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: October 29, 2020
Fresenius
Medical Care AG & Co.
KGaA,
fresenius
medical care management ag, | |||
| By: | /s/ Rice Powell | ||
| Name: | Rice Powell | ||
| 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 | ||
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 |
October 29, 2020
Fresenius Medical Care continues solid revenue and strong earnings growth in the third quarter
| - | Operations maintained despite COVID-19, impact on patients minimized |
| - | Q3 development impacted by currency headwinds and expected lower reimbursement for calcimimetics |
| - | Financial targets for FY 2020 confirmed inclusive of anticipated COVID-19 effects |
“The global COVID-19 pandemic has posed further challenges to us in the third quarter; and it will be a sizable challenge to be managed also in the months to come”, said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “It is at times like these that the value of our strong network, of our vertically integrated, resilient business model and of the commitment of our entire Fresenius Medical Care team becomes evident – and proves to be decisive for fostering the wellbeing of our patients as well as creating value for our shareholders. On the back of our strong earnings development in the first nine months, we confirm our outlook for the financial year 2020. Thanks to the lessons learned from the first phase of the pandemic and our highly committed team, I am very confident that our company will successfully cope with COVID-19.”
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Key figures (IFRS)
Q3 2020 EUR m |
Q3 2019 EUR m |
Growth yoy |
Growth yoy, cc |
9M 2020 EUR m |
9M 2019 EUR m |
Growth yoy |
Growth yoy, cc | |
| Revenue | 4,414 | 4,419 | +/- 0% | + 6% | 13,459 | 12,897 | + 4% | + 6% |
| Operating income | 632 | 595 | + 6% | + 11% | 1,843 | 1,653 | + 11% | + 12% |
| Net income1 | 354 | 333 | + 6% | + 11% | 987 | 857 | + 15% | + 15 % |
| Net income adjusted1,2 | 354 | 332 | + 7% | + 11% | 987 | 868 | + 14% | + 14 % |
| Basic EPS (EUR) | 1.21 | 1.10 | + 9% | + 14% | 3.35 | 2.82 | + 19% | + 19% |
cc = at constant currency, EPS = earnings per share
2020 targets confirmed: mid to high single digit growth rates
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 and exclude special items3. They are based on the adjusted results 2019, including the effects of the operations of the NxStage acquisition and the IFRS 16 implementation.
COVID-19 continues to affect dialysis business
As in previous months – and thanks to the comprehensive protective measures initiated at the beginning of the pandemic – Fresenius Medical Care was able to minimize the impact on patients and to maintain operations in its more than 4,000 dialysis centers worldwide without significant interruptions.
However, the COVID-19 pandemic continued to affect people with advanced kidney disease and the resulting severity of illness generated an increase in hospitalization and mortality rate. The resulting increase in missed treatments and, in addition, delayed referrals of patients with late stage chronic kidney disease, slowed down the organic growth in the
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.
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third quarter to 3%. In the first nine months the COVID-19 related net effect on operating income was neutral.
Patients, Clinics and Employees
As of September 30, 2020, Fresenius Medical Care treated 349,167 patients in 4,073 dialysis clinics worldwide. At the end of the third quarter, the Company had 126,463 employees (full-time equivalents) worldwide, compared to 120,734 employees as of September 30, 2019.
Solid net income growth despite headwinds from exchange rates
Despite a sizable headwind from exchange rates, revenue was stable and amounted to EUR 4,414 million (+6% at constant currency). Organic growth of 3% was realized including the expected negative impacts from lower reimbursement for calcimimetics and COVID-19 related slower growth in the number of treatments.
Health Care Services revenue remained stable despite the negative effects from exchange rates and amounted to EUR 3,499 million (+6% at constant currency). On a constant currency basis, growth was driven by negative prior year revenue effects (“prior year revenue effects”)4, contributions from acquisitions and was achieved despite the lower reimbursement for calcimimetics as well as COVID-19 related slower growth of the number of treatments.
Health Care Products revenue was negatively impacted by exchange rates as well and decreased by 1% to EUR 915 million (+4% at constant currency). On a constant currency basis, growth was driven by higher sales of products for acute care treatments, machines for chronic treatment and peritoneal dialysis products.
In the first nine months of 2020 revenue increased by 4% to EUR 13,459 million (+6% at constant currency), with organic growth of 4%. Health Care Services revenue grew by 4% to EUR 10,708 million (+6% at constant currency). Health Care Products revenue rose by 5% to EUR 2,751 million (+7% at constant currency).
4 Prior year revenue effects: revenue recognition adjustment for accounts receivable in legal dispute (- EUR 84 million), reduction in patient attribution and a decreasing savings rate for ESCOs (- EUR 46 million)
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Operating income increased by 6% to EUR 632 million (+11% at constant currency), resulting in a margin of 14.3% (Q3 2019: 13.5%). The margin increase was driven by negative prior year earnings effects (“prior year earnings effects”)5, an increase in commercial revenue and favorable cost management of pharmaceuticals, offsetting the lower reimbursement for calcimimetics, all in the North America region.
Operating income for the first nine months increased by 11% to EUR 1,843 million (+12% at constant currency), resulting in a margin of 13.7% (9M 2019: 12.8%).
Net income1 grew by 6% to EUR 354 million (+11% at constant currency), driven by the earnings effects described above and lower refinancing cost in light of favorable market conditions. Basic earnings per share (EPS) rose by 9% to EUR 1.21 (+14% at constant currency), supported by the Company’s completed share buyback program decreasing the average weighted number of shares outstanding.
In the first nine months of 2020, net income increased by 15% to EUR 987 million (+15% at constant currency). EPS rose by 19% to EUR 3.35 (+19% at constant currency).
Exceptional cash-flow development in the first nine months
Fresenius Medical Care generated EUR 746 million of operating cash flow (Q3 2019: EUR 868 million), resulting in a margin of 16.9% (Q3 2019: 19.7%). For the first nine months of 2020, operating cash flow increased to EUR 3,649 million (9M 2019: EUR 1,796 million). This increase was mainly due to U.S. federal relief funding and advanced payments under the CARES Act, other COVID-19 relief, as well as working capital improvements driven by cash collections.
Free cash flow (net cash used in operating activities, after capital expenditures, before acquisitions, investments and dividends) amounted to EUR 507 million (Q3 2019: EUR 584 million), resulting in a margin of 11.5% (Q3 2019: 13.2%). In the first nine months of 2020, the Company generated a free cash flow of EUR 2,913 million (9M 2019: EUR 1,019 million).
5 Prior year earnings effects: revenue recognition adjustment for accounts receivable in legal dispute (- EUR 84 million), reduction in patient attribution and a decreasing savings rate for ESCOs (- EUR 46 million) as well as a remeasurement effect of the fair value of the Humacyte investment (EUR 76 million).
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Regional developments
In North America, despite a sizable negative exchange rate effect, revenue remained stable and amounted to EUR 3,069 million (+5% at constant currency, +2% organic). On a constant currency basis, growth drivers were the prior year revenue effects4, an improved commercial mix and contributions from acquisitions. This was partially offset by expected headwinds from lower reimbursement for calcimimetics as well as a COVID-19 related slower growth of the number of treatments. For the first nine months, North America revenue increased by 5% to EUR 9,495 million (+5% at constant currency, +3% organic).
Despite significant headwinds from exchange rates, operating income increased by 8% to EUR 514 million (+13% at constant currency), resulting in a margin of 16.8% (Q3 2019: 15.5%). The margin increase was mainly due to the prior year earnings effects5, an increase in commercial revenue and favorable cost management of pharmaceuticals, offsetting the lower reimbursement for calcimimetics. For the first nine months, operating income rose by 24% to EUR 1,587 million (+24% at constant currency), resulting in a margin of 16.7% (9M 2019: 14.2%).
Despite a negative effect from exchange rates, revenue in EMEA remained stable and amounted to EUR 682 million (+3% at constant currency, +1% organic). Growth on a constant currency basis was supported by contributions from acquisitions and growth in same market treatments. For the first nine months, EMEA revenue increased by 3% to EUR 2,048 million (+5% at constant currency, +4% organic).
Operating income for the EMEA region also remained stable and amounted to EUR 99 million (+0% at constant currency), resulting in a margin of 14.6% (Q3 2019: 14.6%). At constant currency, operating income development was negatively influenced by unfavorable impact from foreign currency transaction effects. For the first nine months, operating income decreased by 17% to EUR 278 million (-16% at constant currency), resulting in a margin of 13.6% (9M 2019: 16.8%). The decrease was mainly due to the reduction of a contingent consideration liability related to Xenios in the prior year and an impairment of a license held by the joint venture with Vifor based on an unfavorable clinical trial.
In Asia-Pacific, revenue development was affected by exchange rates and increased by 2% to EUR 484 million (+6% at constant currency, +6 organic), mainly driven by growth in same market treatments, contributions from acquisitions, higher sales of in-center disposables and products for acute care treatments, as well as organic growth in the Care Coordination business. This was partially offset by missing contributions from closed or sold clinics. For the first nine months, revenue grew by 1% to EUR 1,377 million (+2% at constant currency, +2% organic).
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Operating income grew by 7% to EUR 97 million (+9% at constant currency), resulting in a margin of 20.0% (Q3 2019: 19.0%). The increase in margin was supported by a favorable impact from cost management initiatives and business growth. For the first nine months, operating income decreased by 7% to EUR 237 million (-7% at constant currency) resulting in a margin of 17.2% (9M 2019: 18.7%).
Including a very significant headwind from exchange rates, Latin America revenue decreased by 7% to EUR 170 million (+22% at constant currency, +17% organic). For the first nine months, revenue decreased by 2% to EUR 508 million (+23% at constant currency, +17% organic).
Operating income increased by 6% to EUR 11 million (+28% at constant currency), resulting in a margin of 6.6% (Q3 2019: 5.8%). For the first nine months, operating income grew by 4% to EUR 29 million (+18% at constant currency), resulting in a margin of 5.7% (9M 2019: 5.4%).
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the third quarter and first nine months of 2020 on October 29, 2020 at 3:30 p.m. CET / 10:30 a.m. ET. 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 third quarter and first nine months 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 4,073 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 349,167 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.
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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, impacts related to the COVID-19 pandemic 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.
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| Statement of earnings | |||||
| in € million, except share data, unaudited | Three months ended September 30 | ||||
| Change | |||||
| 2020 | 2019 | Change | at cc | ||
| Health Care Services | 3,499 | 3,492 | 0.2% | 6.3% | |
| Health Care Products | 915 | 927 | -1.3% | 3.9% | |
| Revenue | 4,414 | 4,419 | -0.1% | 5.8% | |
| Costs of revenue | 3,047 | 3,073 | -0.9% | 5.4% | |
| Gross profit | 1,367 | 1,346 | 1.6% | 6.2% | |
| Selling, general and administrative | 717 | 732 | -1.9% | 3.3% | |
| (Gain) loss related to divestitures of Care Coordination activities | (3) | (2) | 31.4% | 59.9% | |
| Research and development | 45 | 42 | 6.5% | 9.3% | |
| Income from equity method investees | (24) | (21) | 17.7% | 17.8% | |
| Operating income | 632 | 595 | 6.1% | 11.0% | |
| Operating income adjusted | 632 | 620 | 2.0% | 6.6% | |
| Interest expense, net | 88 | 105 | -16.3% | -11.0% | |
| Income before taxes | 544 | 490 | 10.9% | 15.7% | |
| Income tax expense | 124 | 98 | 25.5% | 30.9% | |
| Net income | 420 | 392 | 7.2% | 11.8% | |
| Net income attributable to noncontrolling interests | 66 | 59 | 12.3% | 18.7% | |
| Net income1 | 354 | 333 | 6.3% | 10.6% | |
| Net income1 adjusted | 354 | 332 | 6.5% | 10.8% | |
| Weighted average number of shares | 292,817,296 | 301,440,412 | |||
| Basic earnings per share | €1.21 | €1.10 | 9.4% | 13.8% | |
| Basic earnings per share adjusted | €1.21 | €1.10 | 9.6% | 14.1% | |
| In percent of revenue | |||||
| Operating income | 14.3% | 13.5% | |||
| Operating income adjusted | 14.3% | 14.0% | |||
| 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. | |||||
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| Statement of earnings | |||||
| in € million, except share data, unaudited | Nine months ended September 30 | ||||
| Change | |||||
| 2020 | 2019 | Change | at cc | ||
| Health Care Services | 10,708 | 10,265 | 4.3% | 5.6% | |
| Health Care Products | 2,751 | 2,632 | 4.5% | 6.8% | |
| Revenue | 13,459 | 12,897 | 4.4% | 5.8% | |
| Costs of revenue | 9,270 | 8,955 | 3.5% | 5.3% | |
| Gross profit | 4,189 | 3,942 | 6.3% | 7.0% | |
| Selling, general and administrative | 2,285 | 2,247 | 1.7% | 2.8% | |
| (Gain) loss related to divestitures of Care Coordination activities | (32) | (14) | 132.0% | 132.3% | |
| Research and development | 141 | 119 | 18.6% | 18.6% | |
| Income from equity method investees | (48) | (63) | -23.1% | -23.1% | |
| Operating income | 1,843 | 1,653 | 11.5% | 11.9% | |
| Operating income adjusted | 1,843 | 1,693 | 8.9% | 9.2% | |
| Interest expense, net | 284 | 327 | -13.2% | -12.1% | |
| Income before taxes | 1,559 | 1,326 | 17.5% | 17.8% | |
| Income tax expense | 362 | 292 | 23.8% | 24.1% | |
| Net income | 1,197 | 1,034 | 15.8% | 16.0% | |
| Net income attributable to noncontrolling interests | 210 | 177 | 18.7% | 18.8% | |
| Net income1 | 987 | 857 | 15.2% | 15.4% | |
| Net income1 adjusted | 987 | 868 | 13.8% | 14.0% | |
| Weighted average number of shares | 294,458,296 | 303,832,868 | |||
| Basic earnings per share | €3.35 | €2.82 | 18.8% | 19.1% | |
| Basic earnings per share adjusted | €3.35 | €2.86 | 17.4% | 17.6% | |
| In percent of revenue | |||||
| Operating income | 13.7% | 12.8% | |||
| Operating income adjusted | 13.7% | 13.1% | |||
| 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. | |||||
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Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
| Three months ended | Nine months ended | |||
| in € million, unaudited | September 30 | September 30 | ||
| 2020 | 2019 | 2020 | 2019 | |
| Operating performance on an adjusted basis | ||||
| Revenue | 4,414 | 4,419 | 13,459 | 12,897 |
| Operating income | 632 | 595 | 1,843 | 1,653 |
| NxStage costs | 2 | 22 | ||
| Cost optimization costs | 25 | 32 | ||
| (Gain) loss related to divestitures of Care Coordination activities | (2) | (14) | ||
| Operating income adjusted | 632 | 620 | 1,843 | 1,693 |
| Net income1 | 354 | 333 | 987 | 857 |
| NxStage costs | 1 | 16 | ||
| Cost optimization costs | 18 | 24 | ||
| (Gain) loss related to divestitures of Care Coordination activities | (20) | (29) | ||
| Net income1 adjusted | 354 | 332 | 987 | 868 |
1 Attributable to shareholders of FMC-AG & Co. KGaA
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Exhibit 99.2
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE THIRD QUARTER
AND FIRST NINE MONTHS 2020
October 29, 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, impacts related to the COVID-19 pandemic, 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
| 1 of 11 | October 29, 2020 |
Statement of earnings
| in € million, except share data, unaudited | Three months ended September 30 | Nine months ended September 30 | ||||||
| 2020 | 2019 | Change |
Change at cc |
2020 | 2019 | Change |
Change at cc |
|
| Health Care Services | 3,499 | 3,492 | 0.2% | 6.3% | 10,708 | 10,265 | 4.3% | 5.6% |
| Health Care Products | 915 | 927 | -1.3% | 3.9% | 2,751 | 2,632 | 4.5% | 6.8% |
| Total revenue | 4,414 | 4,419 | -0.1% | 5.8% | 13,459 | 12,897 | 4.4% | 5.8% |
| Costs of revenue | 3,047 | 3,073 | -0.9% | 5.4% | 9,270 | 8,955 | 3.5% | 5.3% |
| Gross profit | 1,367 | 1,346 | 1.6% | 6.2% | 4,189 | 3,942 | 6.3% | 7.0% |
| Selling, general and administrative | 717 | 732 | -1.9% | 3.3% | 2,285 | 2,247 | 1.7% | 2.8% |
| (Gain) loss related to divestitures of Care Coordination activities | (3) | (2) | 31.4% | 59.9% | (32) | (14) | 132.0% | 132.3% |
| Research and development | 45 | 42 | 6.5% | 9.3% | 141 | 119 | 18.6% | 18.6% |
| Income from equity method investees | (24) | (21) | 17.7% | 17.8% | (48) | (63) | -23.1% | -23.1% |
| Operating income | 632 | 595 | 6.1% | 11.0% | 1,843 | 1,653 | 11.5% | 11.9% |
| Operating income margin in % | 14.3% | 13.5% | 13.7% | 12.8% | ||||
| Interest income | (8) | (21) | -63.7% | -60.8% | (27) | (47) | -41.1% | -39.3% |
| Interest expense | 96 | 126 | -24.1% | -19.3% | 311 | 374 | -16.7% | -15.5% |
| Interest expense, net | 88 | 105 | -16.3% | -11.0% | 284 | 327 | -13.2% | -12.1% |
| Income before taxes | 544 | 490 | 10.9% | 15.7% | 1,559 | 1,326 | 17.5% | 17.8% |
| Income tax expense | 124 | 98 | 25.5% | 30.9% | 362 | 292 | 23.8% | 24.1% |
| Net income | 420 | 392 | 7.2% | 11.8% | 1,197 | 1,034 | 15.8% | 16.0% |
| Net income attributable to noncontrolling interests | 66 | 59 | 12.3% | 18.7% | 210 | 177 | 18.7% | 18.8% |
| Net income attributable to shareholders of FMC-AG & Co. KGaA | 354 | 333 | 6.3% | 10.6% | 987 | 857 | 15.2% | 15.4% |
| Operating income | 632 | 595 | 6.1% | 11.0% | 1,843 | 1,653 | 11.5% | 11.9% |
| Depreciation, amortization and impairment loss | 393 | 410 | -4.0% | 1.1% | 1,204 | 1,159 | 3.9% | 4.9% |
| EBITDA | 1,025 | 1,005 | 2.0% | 6.9% | 3,047 | 2,812 | 8.4% | 9.0% |
| EBITDA margin in % | 23.2% | 22.7% | 22.6% | 21.8% | ||||
| Weighted average number of shares | 292,817,296 | 301,440,412 | 294,458,296 | 303,832,868 | ||||
| Basic earnings per share | €1.21 | €1.10 | 9.4% | 13.8% | €3.35 | €2.82 | 18.8% | 19.1% |
| Basic earnings per ADS | €0.60 | €0.55 | 9.4% | 13.8% | €1.68 | €1.41 | 18.8% | 19.1% |
| Statement of earnings | page 2 of 11 | October 29, 2020 |
Segment information
| unaudited | Three months ended September 30 | Nine months ended September 30 | ||||||
| 2020 | 2019 | Change |
Change at cc |
2020 | 2019 | Change |
Change at cc |
|
| Total | ||||||||
| Revenue in € million | 4,414 | 4,419 | -0.1% | 5.8% | 13,459 | 12,897 | 4.4% | 5.8% |
| Operating income in € million | 632 | 595 | 6.1% | 11.0% | 1,843 | 1,653 | 11.5% | 11.9% |
| Operating income margin in % | 14.3% | 13.5% | 13.7% | 12.8% | ||||
| Delivered Operating Income in € million | 566 | 536 | 5.4% | 10.1% | 1,633 | 1,476 | 10.6% | 11.0% |
| Days sales outstanding (DSO) | 51 | 73 | ||||||
| Employees (full-time equivalents) | 126,463 | 120,734 | ||||||
| North America | ||||||||
| Revenue in € million | 3,069 | 3,073 | -0.1% | 5.4% | 9,495 | 9,021 | 5.3% | 5.4% |
| Operating income in € million | 514 | 477 | 7.7% | 13.2% | 1,587 | 1,279 | 24.1% | 24.3% |
| Operating income margin in % | 16.8% | 15.5% | 16.7% | 14.2% | ||||
| Delivered Operating Income in € million | 452 | 422 | 7.1% | 12.4% | 1,385 | 1,112 | 24.6% | 24.7% |
| Days sales outstanding (DSO) | 26 | 57 | ||||||
| EMEA | ||||||||
| Revenue in € million | 682 | 683 | -0.2% | 3.1% | 2,048 | 1,984 | 3.2% | 5.0% |
| Operating income in € million | 99 | 100 | -0.4% | 0.3% | 278 | 334 | -16.7% | -16.3% |
| Operating income margin in % | 14.6% | 14.6% | 13.6% | 16.8% | ||||
| Delivered Operating Income in € million | 98 | 98 | 0.1% | 0.8% | 276 | 330 | -16.4% | -15.9% |
| Days sales outstanding (DSO) | 91 | 98 | ||||||
| Asia-Pacific | ||||||||
| Revenue in € million | 484 | 475 | 2.0% | 5.6% | 1,377 | 1,360 | 1.2% | 2.2% |
| Operating income in € million | 97 | 90 | 7.2% | 8.5% | 237 | 254 | -6.9% | -6.8% |
| Operating income margin in % | 20.0% | 19.0% | 17.2% | 18.7% | ||||
| Delivered Operating Income in € million | 95 | 88 | 7.0% | 8.2% | 232 | 248 | -6.6% | -6.5% |
| Days sales outstanding (DSO) | 114 | 119 | ||||||
| Latin America | ||||||||
| Revenue in € million | 170 | 182 | -6.6% | 21.5% | 508 | 516 | -1.6% | 23.2% |
| Operating income in € million | 11 | 11 | 5.7% | 27.7% | 29 | 28 | 4.0% | 17.6% |
| Operating income margin in % | 6.6% | 5.8% | 5.7% | 5.4% | ||||
| Delivered Operating Income in € million | 11 | 11 | 4.0% | 25.3% | 29 | 28 | 3.6% | 17.0% |
| Days sales outstanding (DSO) | 138 | 119 | ||||||
| Corporate | ||||||||
| Revenue in € million | 9 | 6 | 45.8% | 52.1% | 31 | 16 | 102.8% | 102.9% |
| Operating income in € million | (89) | (83) | 8.6% | 10.3% | (288) | (242) | 19.2% | 19.5% |
| Delivered Operating Income in € million | (90) | (83) | 8.9% | 10.6% | (289) | (242) | 19.4% | 19.7% |
cc = constant currency. Changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We calculate these non-IFRS financial measures at constant exchange rates to show changes in our revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant
| Segment information | page 3 of 11 | October 29, 2020 |
Balance sheet
| in € million, except for net leverage ratio, unaudited | September 30 | December 31 |
| 2020 | 2019 | |
| Assets | ||
| Current assets | 7,824 | 7,165 |
| Goodwill and intangible assets | 15,009 | 15,444 |
| Right of use assets | 4,264 | 4,325 |
| Other non-current assets | 5,952 | 6,001 |
| Total assets | 33,049 | 32,935 |
| Liabilities and equity | ||
| Current liabilities | 7,043 | 7,059 |
| Non-current liabilities | 13,350 | 12,649 |
| Total equity | 12,656 | 13,227 |
| Total liabilities and equity | 33,049 | 32,935 |
| Equity/assets ratio | 38% | 40% |
| Debt and lease liabilities | ||
| Short-term debt | 307 | 1,150 |
| Short-term debt from related parties | 86 | 22 |
| Current portion of long-term debt | 1,046 | 1,447 |
| Current portion of long-term lease liabilities | 605 | 622 |
| Current portion of long-term lease liabilities from related parties | 21 | 17 |
| Long-term debt, less current portion | 6,980 | 6,458 |
| Long-term lease liabilities, less current portion | 3,883 | 3,960 |
| Long-term lease liabilities from related parties, less current portion | 125 | 106 |
| Total debt and lease liabilities | 13,053 | 13,782 |
| Minus: Cash and cash equivalents 1 | (1,599) | (1,008) |
| Total net debt and lease liabilities | 11,454 | 12,774 |
| Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures | ||
| Net income | 1,602 | 1,439 |
| Income tax expense | 471 | 402 |
| Interest income | (42) | (62) |
| Interest expense | 428 | 491 |
| Depreciation and amortization | 1,614 | 1,553 |
| Adjustments 2 | 76 | 110 |
| Annualized adjusted EBITDA | 4,149 | 3,933 |
| Net leverage ratio | 2.8 | 3.2 |
1 The increase in cash and cash equivalents as of September 30, 2020 was primarily related to federal relief funding and advanced payments under the CARES Act and other COVID-19 relief.
2 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 (2020: €2 M; 2019: -€71 M), non-cash charges, primarily related to pension expense (2020: €49 M; 2019: €46 M), impairment loss (2020: €25 M; 2019: €40 M) and NxStage related transaction costs (2019: €95 M).
| Balance sheet | page 4 of 11 | October 29, 2020 |
Cash flow statement
| in € million, unaudited |
Three months ended September 30 |
Nine months ended September 30 |
||
| 2020 | 2019 | 2020 | 2019 | |
| Operating activities | ||||
| Net income | 420 | 392 | 1,197 | 1,034 |
| Depreciation / amortization / impairment loss | 393 | 410 | 1,204 | 1,159 |
| Change in working capital and other non-cash items | (67) | 66 | 1,248 | (397) |
| Net cash provided by (used in) operating activities | 746 | 868 | 3,649 | 1,796 |
| In percent of revenue | 16.9% | 19.7% | 27.1% | 13.9% |
| Investing activities | ||||
| Purchases of property, plant and equipment | (245) | (291) | (746) | (788) |
| Proceeds from sale of property, plant and equipment | 6 | 7 | 10 | 11 |
| Capital expenditures, net | (239) | (284) | (736) | (777) |
| Free cash flow | 507 | 584 | 2,913 | 1,019 |
| In percent of revenue | 11.5% | 13.2% | 21.6% | 7.9% |
| Acquisitions and investments, net of cash acquired, and purchases of intangible assets | (76) | (100) | (155) | (2,014) |
| Investments in debt securities | (2) | (1) | (30) | (10) |
| Proceeds from divestitures | 14 | 26 | 13 | 44 |
| Proceeds from sale of debt securities | 15 | 7 | 27 | 12 |
| Free cash flow after investing activities | 458 | 516 | 2,768 | (949) |
| Cash flow | page 5 of 11 | October 29, 2020 |
Revenue development
| Same | ||||||
| market | ||||||
| Change | Organic | treatment | ||||
| in € million, unaudited | 2020 | 2019 | Change | at cc | growth | growth1 |
| Three months ended September 30 | ||||||
| Total revenue | 4,414 | 4,419 | -0.1% | 5.8% | 3.1% | |
| Health Care Services | 3,499 | 3,492 | 0.2% | 6.3% | 3.2% | 1.8% |
| Thereof Dialysis Care revenue | 3,099 | 3,155 | -1.7% | 4.4% | 0.8% | 1.8% |
| Thereof Care Coordination revenue | 400 | 337 | 18.5% | 24.2% | 26.6% | |
| Health Care Products | 915 | 927 | -1.3% | 3.9% | 2.9% | |
| Thereof Dialysis Products | 891 | 907 | -1.8% | 3.5% | 2.5% | |
| Thereof Non-Dialysis Products | 24 | 20 | 19.8% | 20.4% | 20.4% | |
| North America | 3,069 | 3,073 | -0.1% | 5.4% | 2.2% | |
| Health Care Services | 2,801 | 2,795 | 0.2% | 5.7% | 2.4% | 0.6%2 |
| Thereof Dialysis Care revenue | 2,472 | 2,522 | -2.0% | 3.4% | -0.6% | 0.6%2 |
| Thereof Care Coordination revenue | 329 | 273 | 20.5% | 27.1% | 31.9% | |
| Health Care Products | 268 | 278 | -3.6% | 1.8% | 0.3% | |
| Thereof Dialysis Products | 267 | 278 | -3.8% | 1.6% | 0.0% | |
| Thereof Non-Dialysis Products | 1 | - | n.a. | n.a. | n.a. | |
| EMEA | 682 | 683 | -0.2% | 3.1% | 0.9% | |
| Health Care Services | 346 | 343 | 0.9% | 4.9% | 2.8% | 1.7% |
| Health Care Products | 336 | 340 | -1.2% | 1.3% | -1.0% | |
| Thereof Dialysis Products | 313 | 320 | -2.3% | 0.4% | -2.0% | |
| Thereof Non-Dialysis Products | 23 | 20 | 16.1% | 16.4% | 16.4% | |
| Asia-Pacific | 484 | 475 | 2.0% | 5.6% | 6.1% | |
| Health Care Services | 227 | 223 | 2.0% | 4.9% | 6.0% | 8.4% |
| Thereof Dialysis Care revenue | 156 | 159 | -1.3% | 1.9% | 6.3% | 8.4% |
| Thereof Care Coordination revenue | 71 | 64 | 10.1% | 12.1% | 5.4% | |
| Health Care Products | 257 | 252 | 2.0% | 6.2% | 6.1% | |
| Thereof Dialysis Products | 257 | 252 | 1.9% | 6.1% | 6.0% | |
| Thereof Non-Dialysis Products | 0 | - | n.a. | n.a. | n.a. | |
| Latin America | 170 | 182 | -6.6% | 21.5% | 16.7% | |
| Health Care Services | 120 | 131 | -8.6% | 19.5% | 13.2% | 1.8% |
| Health Care Products | 50 | 51 | -1.5% | 26.9% | 25.5% | |
| Corporate | 9 | 6 | 45.8% | 52.1% | ||
| Health Care Services | 5 | - | n.a. | n.a. | ||
| Health Care Products | 4 | 6 | -44.6% | -44.5% | ||
| Nine months ended September 30 | ||||||
| Total revenue | 13,459 | 12,897 | 4.4% | 5.8% | 3.7% | |
| Health Care Services | 10,708 | 10,265 | 4.3% | 5.6% | 3.6% | 2.7% |
| Thereof Dialysis Care revenue | 9,522 | 9,233 | 3.1% | 4.5% | 2.2% | 2.7% |
| Thereof Care Coordination revenue | 1,186 | 1,032 | 14.9% | 15.2% | 17.8% | |
| Health Care Products | 2,751 | 2,632 | 4.5% | 6.8% | 4.0% | |
| Thereof Dialysis Products | 2,675 | 2,576 | 3.9% | 6.1% | 3.3% | |
| Thereof Non-Dialysis Products | 76 | 56 | 35.6% | 36.0% | 36.0% | |
| North America | 9,495 | 9,021 | 5.3% | 5.4% | 3.0% | |
| Health Care Services | 8,660 | 8,264 | 4.8% | 4.9% | 3.0% | 1.8%2 |
| Thereof Dialysis Care revenue | 7,645 | 7,405 | 3.2% | 3.4% | 0.8% | 1.8%2 |
| Thereof Care Coordination revenue | 1,015 | 859 | 18.1% | 18.2% | 23.1% | |
| Health Care Products | 835 | 757 | 10.3% | 10.5% | 3.5% | |
| Thereof Dialysis Products | 834 | 757 | 10.2% | 10.3% | 3.3% | |
| Thereof Non-Dialysis Products | 1 | - | n.a. | n.a. | n.a. | |
| EMEA | 2,048 | 1,984 | 3.2% | 5.0% | 3.6% | |
| Health Care Services | 1,028 | 1,002 | 2.6% | 5.0% | 3.8% | 2.3% |
| Health Care Products | 1,020 | 982 | 3.9% | 5.1% | 3.4% | |
| Thereof Dialysis Products | 950 | 926 | 2.7% | 3.9% | 2.1% | |
| Thereof Non-Dialysis Products | 70 | 56 | 24.3% | 24.5% | 24.5% | |
| Asia-Pacific | 1,377 | 1,360 | 1.2% | 2.2% | 2.4% | |
| Health Care Services | 641 | 632 | 1.5% | 1.2% | 1.8% | 8.1% |
| Thereof Dialysis Care revenue | 470 | 459 | 2.4% | 1.6% | 5.3% | 8.1% |
| Thereof Care Coordination revenue | 171 | 173 | -1.0% | 0.2% | -6.9% | |
| Health Care Products | 736 | 728 | 1.0% | 3.0% | 2.9% | |
| Thereof Dialysis Products | 731 | 728 | 0.3% | 2.3% | 2.2% | |
| Thereof Non-Dialysis Products | 5 | - | n.a. | n.a. | n.a. | |
| Latin America | 508 | 516 | -1.6% | 23.2% | 17.1% | |
| Health Care Services | 360 | 367 | -1.9% | 24.4% | 16.8% | 3.4% |
| Health Care Products | 148 | 149 | -1.0% | 20.3% | 18.1% | |
| Corporate | 31 | 16 | 102.8% | 102.9% | ||
| Health Care Services | 19 | - | n.a. | n.a. | ||
| Health Care Products | 12 | 16 | -20.6% | -20.7% |
1 same market treatment growth = organic growth less price effects
2 U.S. (excl. Mexico), same market treatment growth North America: 1.0% for the three months and 2.1% for the nine months ended September 30, 2020.
| Revenue development | page 6 of 11 | October 29, 2020 |
Key metrics North America segment
| unaudited | Three months ended September 30 | Nine months ended September 30 | ||||||
| 2020 | 2019 | Change |
Change at cc |
2020 | 2019 | Change |
Change at cc |
|
| Dialysis | ||||||||
| Revenue in € million | 2,740 | 2,800 | -2.1% | 3.3% | 8,480 | 8,162 | 3.9% | 4.0% |
| Operating income in € million | 490 | 500 | -1.9% | 2.9% | 1,474 | 1,261 | 16.9% | 17.1% |
| Operating income margin in % | 17.9% | 17.9% | 17.4% | 15.4% | ||||
| Delivered Operating Income in € million | 436 | 450 | -3.0% | 1.6% | 1,298 | 1,107 | 17.3% | 17.4% |
| Care Coordination | ||||||||
| Revenue in € million | 329 | 273 | 20.5% | 27.1% | 1,015 | 859 | 18.1% | 18.2% |
| Operating income in € million | 24 | (23) | n.a. | n.a. | 113 | 18 | 528.7% | 529.5% |
| Operating income margin in % | 7.2% | -8.3% | 11.1% | 2.1% | ||||
| Delivered Operating Income in € million | 16 | (28) | n.a. | n.a. | 87 | 5 | 1610.5% | 1612.6% |
Key metrics Dialysis Care Services
| unaudited | Nine months ended September 30, 2020 | |||||||
| Clinics |
Growth in % |
De novos | Patients |
Growth in % |
Treatments |
Growth in % |
||
| Total | 4,073 | 2% | 78 | 349,167 | 2% | 40,098,653 | 3% | |
| North America | 2,620 | 1% | 40 | 211,766 | 1% | 24,600,114 | 3% | |
| EMEA | 805 | 3% | 18 | 67,623 | 2% | 7,659,111 | 2% | |
| Asia-Pacific | 397 | -1% | 17 | 32,689 | 1% | 3,465,604 | 2% | |
| Latin America | 251 | 8% | 3 | 37,089 | 8% | 4,373,824 | 10% | |
Key metrics Care Coordination
| unaudited | Nine months ended September 30 | |||
| 2020 | 2019 | Change | Change at cc |
|
| North America | ||||
| Member months under medical cost management1 | 508,117 | 482,970 | 5.2% | |
| Medical cost under management (in € million)1 | 3,196 | 3,149 | 1.5% | 1.6% |
| Care Coordination patient encounters | 563,809 | 774,764 | -27.2% | |
1 Data presented for the ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.
| Key metrics | page 7 of 11 | October 29, 2020 |
Quality data1
| in % of patients | North America | EMEA | Latin America | Asia-Pacific | ||||
| Q3 2020 | Q3 2019 | Q3 2020 | Q3 2019 | Q3 2020 | Q3 2019 | Q3 2020 | Q3 2019 | |
| Kt/V ≥ 1.2 | 97 | 97 | 93 | 94 | 91 | 91 | 94 | 95 |
| Hemoglobin = 10-12 g/dl | 71 | 71 | 82 | 83 | 46 | 50 | 52 | 55 |
| Calcium = 8.4-10.2 mg/dl | 80 | 82 | 77 | 78 | 74 | 76 | 71 | 73 |
| Albumin ≥ 3.5 g/dl1) | 79 | 79 | 90 | 88 | 89 | 90 | 90 | 88 |
| Phosphate ≤ 5.5 mg/dl | 58 | 60 | 79 | 80 | 75 | 76 | 64 | 64 |
| Patients
without catheter (after 90 days) |
80 | 82 | 77 | 78 | 78 | 80 | 81 | 86 |
| in days | ||||||||
| Days in hospital per patient year | 9.6 | 10.9 | 7.2 | 7.9 | 4.0 | 4.2 | 3.1 | 2.8 |
1 Definitions cf. Annual Report 2019, Section "Non-Financial Group Report"
| Quality data | page 8 of 11 | October 29, 2020 |
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
| in € million, unaudited |
Three months ended September 30 |
Nine months ended September 30 |
||
| 2020 | 2019 | 2020 | 2019 | |
| Delivered Operating Income reconciliation | ||||
| Total | ||||
| Operating income | 632 | 595 | 1,843 | 1,653 |
| less noncontrolling interests | (66) | (59) | (210) | (177) |
| Delivered Operating Income | 566 | 536 | 1,633 | 1,476 |
| North America | ||||
| Operating income | 514 | 477 | 1,587 | 1,279 |
| less noncontrolling interests | (62) | (55) | (202) | (167) |
| Delivered Operating Income | 452 | 422 | 1,385 | 1,112 |
| Dialysis | ||||
| Operating income | 490 | 500 | 1,474 | 1,261 |
| less noncontrolling interests | (54) | (50) | (176) | (154) |
| Delivered Operating Income | 436 | 450 | 1,298 | 1,107 |
| Care Coordination | ||||
| Operating income | 24 | (23) | 113 | 18 |
| less noncontrolling interests | (8) | (5) | (26) | (13) |
| Delivered Operating Income | 16 | (28) | 87 | 5 |
| EMEA | ||||
| Operating income | 99 | 100 | 278 | 334 |
| less noncontrolling interests | (1) | (2) | (2) | (4) |
| Delivered Operating Income | 98 | 98 | 276 | 330 |
| Asia-Pacific | ||||
| Operating income | 97 | 90 | 237 | 254 |
| less noncontrolling interests | (2) | (2) | (5) | (6) |
| Delivered Operating Income | 95 | 88 | 232 | 248 |
| Dialysis | ||||
| Operating income | 82 | 81 | 227 | 235 |
| less noncontrolling interests | (3) | (2) | (7) | (5) |
| Delivered Operating Income | 79 | 79 | 220 | 230 |
| Care Coordination | ||||
| Operating income | 15 | 9 | 10 | 19 |
| less noncontrolling interests | 1 | 0 | 2 | (1) |
| Delivered Operating Income | 16 | 9 | 12 | 18 |
| Latin America | ||||
| Operating income | 11 | 11 | 29 | 28 |
| less noncontrolling interests | 0 | 0 | 0 | 0 |
| Delivered Operating Income | 11 | 11 | 29 | 28 |
| Corporate | ||||
| Operating income | (89) | (83) | (288) | (242) |
| less noncontrolling interests | (1) | 0 | (1) | 0 |
| Delivered Operating Income | (90) | (83) | (289) | (242) |
| Reconciliation | page 9 of 11 | October 29, 2020 |
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
| in € million, except share data, unaudited | ||||||||
| (Gain) loss related | Change | |||||||
| Cost | to divestitures of | Change | (adjusted | |||||
| Results | Results | NxStage | optimization | Care Coordination | Results 2019 | (adjusted | results) | |
| 2020 | 2019 | costs | costs | activities | adjusted | results) | at cc | |
| Three months ended September 30 | ||||||||
| Total revenue | 4,414 | 4,419 | 4,419 | -0.1% | 5.8% | |||
| EBITDA | 1,025 | 1,005 | 2 | 7 | (2) | 1,012 | 1.3% | 6.2% |
| Total operating income | 632 | 595 | 2 | 25 | (2) | 620 | 2.0% | 6.6% |
| North America | 514 | 477 | 2 | 22 | (2) | 499 | 3.1% | 8.3% |
| Dialysis | 490 | 500 | 2 | 22 | 524 | -6.4% | -1.8% | |
| Care Coordination | 24 | (23) | (2) | (25) | n.a. | n.a. | ||
| EMEA | 99 | 100 | 3 | 103 | -3.1% | -2.4% | ||
| Asia-Pacific | 97 | 90 | 90 | 7.2% | 8.5% | |||
| Dialysis | 82 | 81 | 81 | 0.4% | 2.1% | |||
| Care Coordination | 15 | 9 | 9 | 70.6% | 69.0% | |||
| Latin America | 11 | 11 | 11 | 5.7% | 27.7% | |||
| Corporate | (89) | (83) | (83) | 8.6% | 10.3% | |||
| Interest expense, net | 88 | 105 | 105 | -16.3% | -11.0% | |||
| Income tax expense | 124 | 98 | 1 | 7 | 18 | 124 | 0.2% | 4.6% |
| Net income attributable to noncontrolling interests | 66 | 59 | 59 | 12.3% | 18.7% | |||
| Net income1 | 354 | 333 | 1 | 18 | (20) | 332 | 6.5% | 10.8% |
| Basic earnings per share | € 1.21 | € 1.10 | € 0.01 | € 0.06 | (€ 0.07) | € 1.10 | 9.6% | 14.1% |
| Nine months ended September 30 | ||||||||
| Total revenue | 13,459 | 12,897 | 12,897 | 4.4% | 5.8% | |||
| EBITDA | 3,047 | 2,812 | 22 | 14 | (14) | 2,834 | 7.5% | 8.1% |
| Total operating income | 1,843 | 1,653 | 22 | 32 | (14) | 1,693 | 8.9% | 9.2% |
| North America | 1,587 | 1,279 | 22 | 29 | (14) | 1,316 | 20.7% | 20.8% |
| Dialysis | 1,474 | 1,261 | 22 | 29 | 1,312 | 12.4% | 12.6% | |
| Care Coordination | 113 | 18 | (14) | 4 | 2661.7% | 2665.1% | ||
| EMEA | 278 | 334 | 3 | 337 | -17.4% | -17.0% | ||
| Asia-Pacific | 237 | 254 | 254 | -6.9% | -6.8% | |||
| Dialysis | 227 | 235 | 235 | -3.7% | -3.9% | |||
| Care Coordination | 10 | 19 | 19 | -46.0% | -43.2% | |||
| Latin America | 29 | 28 | 28 | 4.0% | 17.6% | |||
| Corporate | (288) | (242) | 0 | (242) | 19.4% | 19.6% | ||
| Interest expense, net | 284 | 327 | 327 | -13.2% | -12.1% | |||
| Income tax expense | 362 | 292 | 6 | 8 | 15 | 321 | 12.6% | 12.8% |
| Net income attributable to noncontrolling interests | 210 | 177 | 177 | 18.7% | 18.8% | |||
| Net income1 | 987 | 857 | 16 | 24 | (29) | 868 | 13.8% | 14.0% |
| Basic earnings per share | € 3.35 | € 2.82 | € 0.05 | € 0.08 | (€ 0.09) | € 2.86 | 17.4% | 17.6% |
1 Attributable to shareholders of FMC-AG & Co. KGaA
| Reconciliation adjusted results | page 10 of 11 | October 29, 2020 |
Outlook 2020
| Outlook 2020 | ||
| Results 2019 | (at Constant Currency) | |
| Revenue1 | €17,477 M | mid to high single digit growth rate |
| Operating income1 | €2,356 M | mid to high single digit growth rate |
| Delivered Operating Income1 | €2,117 M | mid to high single digit growth rate |
| Net income1,2 | €1,236 M | mid to high single digit growth rate |
| Basic earnings per share growth1,2 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 investments3 | €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 | €1.20 | assessed based on expected development of net income and shares outstanding |
| Employees4 | 126,463 | > 124,000 |
| Research and development expenses | €168 M | €200 - €220 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 Full-time equivalents.
| Outlook | page 11 of 11 | October 29, 2020 |