6-K
Fresenius Medical Care AG (FMS)
SECURITIES ANDEXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGNPRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May 2022
Commission file number: 001-32749
FRESENIUS MEDICALCARE AG & Co. KGaA
(Translation of registrant's name into English)
Else-Kröner Strasse 1
61346 Bad Homburg
Germany
(Address of principalexecutive 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): ¨
On May 4, 2022, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its first quarter results for the period ending March 31, 2022. 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 first quarter 2022 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) free cash flow, (c) net leverage ratio (ratio of net debt to adjusted EBITDA) and (d) 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 EBITDA, Adjusted EBITDA, Net Leverage Ratio and Free Cash Flow to the most comparable IFRS financial measures are included in the attached Financial Statements. As the reconciliation of amounts stated in Constant Currency is inherent in the disclosure included in the Press Release, we believe that a separate reconciliation would not provide any additional benefit.
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.
EXHIBITS
The following exhibits are being furnished with this Report:
| Exhibit 99.1 | Press release issued on May 4, 2022. |
|---|---|
| Exhibit 99.2 | Complete overview of the first quarter 2022. |
| --- | --- |
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: May 4, 2022
| Fresenius<br>Medical Care AG & Co. KGaA, | ||
|---|---|---|
| a partnership limited by<br>shares, represented by: | ||
| fresenius<br>medical care management ag, its | ||
| General Partner | ||
| By: | /s/<br>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<br> Release | Media contact<br><br><br><br>Matthias Link<br><br><br><br>T +49 6172 609-2872<br><br><br><br>matthias.link@fmc-ag.com<br><br><br><br><br><br><br><br>Contact for analystsand investors<br><br><br><br>Dr. Dominik Heger<br><br><br><br>T +49 6172 609-2601<br><br><br><br>dominik.heger@fmc-ag.com<br><br><br><br><br><br><br><br>www.freseniusmedicalcare.com |
|---|
May 4, 2022
Fresenius Medical Care reports first quarter results in line withits expectations despite significant headwinds
| - | Higher than anticipated COVID-19-related excess mortality, but declining<br> throughout the quarter |
|---|---|
| - | Earnings development affected by ongoing significantly elevated labor costs<br> compounded by effects from Omicron in Health Care Services and by increased material and<br> logistics costs in Health Care Products |
| --- | --- |
| - | Earnings development in EMEA additionally impacted by the war in Ukraine |
| --- | --- |
| - | Financial targets for FY 2022 confirmed |
| --- | --- |
Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “When we see what is happening in Ukraine, it is again above all the human tragedy that leaves us deeplysaddened. I am incredibly thankful and proud of all who continue to work tirelessly to ensure patient care and the holding up of ourlocal operations under these outstandingly difficult circumstances. Although it is difficult to talk about numbers with these imagesin mind, I have to say that in addition, Omicron has affected the quarter heavily. This resulted in high excess mortality amongour patients and significantly elevated labor costs in the U.S. to manage isolation clinics and shifts. We were able to compensate thisand delivered the quarter in line with our expectations. Based on a strong decline in excess mortality in February and March, weconfirm our financial targets for 2022.”
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Key figures (IFRS)
| Q1 2021 m | Growth <br>yoy | Growth <br>yoy, cc | |||
|---|---|---|---|---|---|
| Revenue | +8% | +3% | |||
| Operating income excl. special items1 | -27%<br> <br>-15% | -30%<br> <br>-19% | |||
| Net income2 excl. special items1 | -37%<br> <br>-20% | -39%<br> <br>-23% | |||
| Basic EPS () excl. special items1 | -37%<br> <br>-20% | -39%<br> <br>-23% |
All values are in Euros.
yoy = year-on-year, cc = at constant currency,EPS = earnings per share
Higher than expected COVID-19-relatedexcess mortality at the beginning of the year
COVID-19-related excess mortality among Fresenius Medical Care’s patients amounted to approximately 2,310 in the first quarter of 2022 (Q1 2021: ~3,200; Q2 2021: ~1,900;
Q3 2021: ~2,900; Q4 2021: ~2,000^3^). It significantly declined in February and March in line with infection rates, but on a quarterly basis still exceeded the originally anticipated level. This resulted in an increased need for isolation clinics and shifts and limited the Company’s ability to mitigate the impacts from labor shortage and wage inflation in the U.S. market.
COVID-19-related excess mortality accumulated to approximately 9,000 patients over the past twelve months and to approximately 22,600 since the start of the pandemic.
The overall estimated adverse effect of accumulated COVID-19-related excess mortality on organic growth in the Health Care Services business amounted to around 290 basis points in the first quarter.
^1^2021: costs related to the FME25 program; 2022: costs related to the FME25 program and impacts related to the war in Ukraine
^2^Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
^3^Historical excess mortality updated for late entries
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War in Ukraine impacting business development
The war in Ukraine is affecting Fresenius Medical Cares' dialysis operations and patient care in the country itself, but also caused higher bad debt expenses in Russia and Ukraine. The direct adverse effect of the war in Ukraine amounted to EUR 22 million at operating income level in the first quarter and is treated as a special item. Fresenius Medical Care will continue to monitor closely the potential effects of the war as well as the general impact of the challenging inflationary macroeconomic environment.
First quarter earnings developmentin line with expectations
Revenue increased by 8% to EUR 4,548 million (+3% at constant currency, +2% organic).
Health Care Services revenue increased by 8% to EUR 3,607 million (+3% at constant currency, +1% organic). At constant currency, this was mainly driven by organic growth, which was achieved despite the adverse impact of COVID-19, the partial reversal of an accrual related to a revenue recognition adjustment for accounts receivable in legal dispute and contributions from acquisitions.
Health Care Products revenue increased by 6% to EUR 941 million (+3% at constant currency, +3% organic). Constant currency growth was mainly driven by higher sales of in-center disposables and renal pharmaceuticals. This was partially offset by lower sales of machines for chronic treatment.
Operating incomedecreased by 27% to EUR 348 million (-30% at constant currency), resulting in a margin of 7.6% (Q1 2021: 11.3%). Operating income excluding special items, i.e. costs incurred for FME25 and the impacts related to the war in Ukraine, declined by 15% to EUR 403 million (-19% at constant currency), resulting in a margin of 8.9% (Q1 2021: 11.3%). At constant currency, the decline was mainly due to higher labor costs, adverse COVID-19-related effects, as well as inflationary and supply chain cost increases. These effects were only partially mitigated by the partial reversal of an accrual related to a revenue recognition adjustment for accounts receivable in legal dispute.
**Net income^2^**decreased by 37% to EUR 157 million (-39% at constant currency). Excluding special items, net income declined by 20% to EUR 200 million (-23% at constant currency), mainly due to the mentioned negative effects on operating income.
Basic earningsper share (EPS) decreased by 37% to EUR 0.54 (-39% at constant currency). EPS excluding special items declined by 20% to EUR 0.68 (-23% at constant currency).
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Cash flow development
In the first quarter, Fresenius Medical Care generated EUR 159 million of operating cash flow (Q1 2021: EUR 208 million), resulting in a margin of 3.5% (Q1 2021: 4.9%). The decrease was mainly due to continued recoupment of the U.S. government’s payments received in 2020 under the CARES Act and a decrease in net income, partially offset by a favorable impact from trade accounts and other receivables.
**Free cash flow^4^**amounted to EUR -1 million (Q1 2021: EUR 29 million) in the first quarter, resulting in a margin of 0.0% (Q1 2021: 0.7%).
Regional developments
In North America, revenue increased by 9% to EUR 3,171 million (+2% at constant currency, +0% organic). At constant currency, this was mainly driven by organic growth in the Health Care Product business and the reversal of an accrual related to a revenue recognition adjustment for accounts receivable in legal dispute. This was partially offset by the adverse COVID-19 impact on the Health Care Services business.
Operating income in North America decreased by 24% to EUR 304 million (-29% at constant currency), resulting in a margin of 9.6% (Q1 2021: 13.7%). At constant currency, the decline in operating income was mainly due to higher labor costs, the adverse impact of COVID-19, inflationary and supply chain cost increases as well as costs related to FME25. This was only partially offset by the partial reversal of an accrual related to a revenue recognition adjustment for accounts receivable in legal dispute.
Revenue in the EMEA region increased by 1% to EUR 674 million in the first quarter (+3% at constant currency, +2% organic). At constant currency, this was mainly due to organic growth in the Health Care Services business, which was achieved despite the negative impact of COVID-19.
Operating income in EMEA decreased by 23% to EUR 61 million (-19% at constant currency), resulting in a margin of 9.1% (Q1 2021: 11.9%). The decline was mainly due to the impact related to the war in Ukraine.
In Asia-Pacific, revenue increased by 8% to EUR 507 million (+4% at constant currency, +4% organic). At constant currency, this was mainly driven by organic growth in the Health Care Products business.
Operating income increased by 16% to EUR 99 million (+14% at constant currency), resulting in a margin of 19.5% (Q1 2021: 18.1%). At constant currency, this was mainly due to a gain from the sale of clinics, favorable currency transaction effects and growth in the Health Care Products business.
^4^Net cash provided by / used in operating activities, after capital expenditures, before acquisitions, investments, and dividends
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Latin Americarevenue increased by 15% to EUR 183 million (+15% at constant currency, +16% organic), mainly driven by strong organic growth in both the Health Care Services and Health Care Products business.
Operating income improved by 68% to EUR 11 million (+51% at constant currency), resulting in a margin of 6.1% (Q1 2021: 4.2%). This was mainly due to a favorable currency transaction effect, which was partially offset by inflationary cost increases.
Patients, clinics and employees
As of March 31, 2022, Fresenius Medical Care treated 343,493 patients in 4,153 dialysis clinics worldwide and had 122,635 employees(full-time equivalents) globally, compared to 124,995 employees as of March 31, 2021.
Outlook
Based on the results for the first quarter, which were in line with the Company’s expectations, Fresenius Medical Care confirms its financial targets for 2022. The earnings improvement will be driven by expected business growth, PPE cost reduction and FME25 savings. The Company expects revenue and net income to grow at low to mid-single digit percentage rates in FY 2022.^5^
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the first quarter 2022 on May 4, 2022 at 3:30 p.m. CEST / 9:30 a.m. EDT. Details will be available on the Fresenius Medical Care website in the “Investors” section. A replay will be available shortly after the call.
Please refer to our statement of earningsincluded at the end of this news and to the attachments as separate PDF files for a complete overview of the results of the first quarter2022. Our 6-K disclosure provides more details.
^5^ These targets are based on the 2021 results excluding the costs related to FME25 of EUR 49 million (for Net Income). They are based on the assumptions outlined in the Press Release on the Q4 and FY 2021 results (Feb. 22, 2022), in constant currency and exclude special items. Special items include further costs related to FME25, the impacts related to the war in Ukraine, and other 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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Fresenius Medical Care is the world's leading provider of products and services for individuals with renal diseases of which around 3.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 4,153 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approximately 343,000 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the Renal Care Continuum, the Company focuses on expanding in complementary areas and in the field of critical care. 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.
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 COVID-19, 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.
Implementation of measures as presented herein may be subject to information and consultation procedures with works councils and other employee representative bodies, as per local laws and practice. Consultation procedures may lead to changes on proposed measures.
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Statement of earnings
| in € million, except share data, unaudited | Three months ended March 31 | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | at cc | |||||||||
| Health Care Services | 3,607 | 3,325 | 8.5 | % | 2.6 | % | ||||||
| Health Care Products | 941 | 885 | 6.4 | % | 3.3 | % | ||||||
| Revenue | 4,548 | 4,210 | 8.0 | % | 2.7 | % | ||||||
| Costs of revenue | 3,290 | 3,003 | 9.5 | % | 4.1 | % | ||||||
| Gross profit | 1,258 | 1,207 | 4.3 | % | -0.6 | % | ||||||
| Selling, general and administrative | 870 | 712 | 22.4 | % | 16.8 | % | ||||||
| Research and development | 50 | 49 | 2.1 | % | -0.9 | % | ||||||
| Income from equity method investees | (10 | ) | (28 | ) | -62.2 | % | -62.0 | % | ||||
| Operating income | 348 | 474 | -26.7 | % | -30.2 | % | ||||||
| Operating income excl. special items | 403 | 477 | -15.4 | % | -19.0 | % | ||||||
| Interest expense, net | 69 | 76 | -9.2 | % | -14.3 | % | ||||||
| Income before taxes | 279 | 398 | -30.0 | % | -33.2 | % | ||||||
| Income tax expense | 67 | 94 | -28.9 | % | -31.7 | % | ||||||
| Net income | 212 | 304 | -30.4 | % | -33.7 | % | ||||||
| Net income attributable to noncontrolling interests | 55 | 55 | -1.7 | % | -8.4 | % | ||||||
| Net income^1^ | 157 | 249 | -36.8 | % | -39.3 | % | ||||||
| Net income^1^ excl. special items | 200 | 251 | -20.1 | % | -22.7 | % | ||||||
| Weighted average number of shares | 293,007,109 | 292,878,085 | ||||||||||
| Basic earnings per share | € | 0.54 | € | 0.85 | -36.8 | % | -39.4 | % | ||||
| Basic earnings per share excl. special items | € | 0.68 | € | 0.86 | -20.1 | % | -22.8 | % | ||||
| In percent of revenue | ||||||||||||
| Operating income margin | 7.6 | % | 11.3 | % | ||||||||
| Operating income margin excl. special items | 8.9 | % | 11.3 | % |
^1^ Attributable to shareholders of FMC-AG & Co. KGaA
For a reconciliation of special items, please refer to the tableat the end of the press release.
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Reconciliation of non-IFRS financialmeasures to the most directly comparable IFRS financial measures
in € million, unaudited
| Three months ended March 31 | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Operating performance excl. special items | ||||
| Revenue | 4,548 | 4,210 | ||
| Operating income | 348 | 474 | ||
| FME25 Program | 33 | 3 | ||
| Ukraine War^1^ | 22 | |||
| Operating income excl. special items | 403 | 477 | ||
| Net income^2^ | 157 | 249 | ||
| FME25 Program | 24 | 2 | ||
| Ukraine War^1^ | 19 | |||
| Net income^2^ excl. special items | 200 | 251 |
^1^ Bad debt expense in Russia and Ukraine and accruals for certain risks associated with allowances on inventories related to the Ukraine War.
^2^ 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 FIRST QUARTER2022
May 4, 2022
Investor Relations
phone: +49 6172 609 2525
| 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 results excl. special items | page 9 |
| Outlook 2022 | page 10 |
Disclaimer
This release contains forward-looking statementsthat are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-lookingstatements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes,regulatory approvals, impacts related to COVID-19, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigationor investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius MedicalCare 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.
Copyrightby Fresenius Medical Care AG & Co. KGaA
Statementof earnings
| in € million, except share data, unaudited | Three months ended March 31 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | Change at cc | |||||||||
| Health Care Services | 3,607 | 3,325 | 8.5 | % | 2.6 | % | ||||||
| Health Care Products | 941 | 885 | 6.4 | % | 3.3 | % | ||||||
| Total revenue | 4,548 | 4,210 | 8.0 | % | 2.7 | % | ||||||
| Costs of revenue | 3,290 | 3,003 | 9.5 | % | 4.1 | % | ||||||
| Gross profit | 1,258 | 1,207 | 4.3 | % | -0.6 | % | ||||||
| Selling, general and administrative | 870 | 712 | 22.4 | % | 16.8 | % | ||||||
| Research and development | 50 | 49 | 2.1 | % | -0.9 | % | ||||||
| Income from equity method investees | (10 | ) | (28 | ) | -62.2 | % | -62.0 | % | ||||
| Operating income | 348 | 474 | -26.7 | % | -30.2 | % | ||||||
| Operating income margin | 7.6 | % | 11.3 | % | ||||||||
| Interest income | (14 | ) | (15 | ) | -7.5 | % | -7.2 | % | ||||
| Interest expense | 83 | 91 | -8.9 | % | -13.1 | % | ||||||
| Interest expense, net | 69 | 76 | -9.2 | % | -14.3 | % | ||||||
| Income before taxes | 279 | 398 | -30.0 | % | -33.2 | % | ||||||
| Income tax expense | 67 | 94 | -28.9 | % | -31.7 | % | ||||||
| Net income | 212 | 304 | -30.4 | % | -33.7 | % | ||||||
| Net income attributable to noncontrolling interests | 55 | 55 | -1.7 | % | -8.4 | % | ||||||
| Net income attributable to shareholders of FMC-AG & Co. KGaA | 157 | 249 | -36.8 | % | -39.3 | % | ||||||
| Operating income | 348 | 474 | -26.7 | % | -30.2 | % | ||||||
| Depreciation, amortization and impairment loss | 419 | 388 | 7.9 | % | 2.5 | % | ||||||
| EBITDA | 767 | 862 | -11.1 | % | -15.5 | % | ||||||
| EBITDA margin | 16.9 | % | 20.5 | % | ||||||||
| Weighted average number of shares | 293,007,109 | 292,878,085 | ||||||||||
| Basic earnings per share | € | 0.54 | € | 0.85 | -36.8 | % | -39.4 | % | ||||
| Basic earnings per ADS | € | 0.27 | € | 0.42 | -36.8 | % | -39.4 | % | ||||
| Statement of earnings | page 2 of 8 | May 4, 2022 | ||||||||||
| --- | --- | --- |
Segmentinformation
| unaudited | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | Change | Change at cc | |||||||||
| Total | |||||||||||
| Revenue in million | 4,548 | 4,210 | 8.0 | % | 2.7 | % | |||||
| Operating income in million | 348 | 474 | -26.7 | % | -30.2 | % | |||||
| Operating income margin | 7.6 | % | 11.3 | % | |||||||
| Days sales outstanding (DSO) | 69 | 60 | |||||||||
| Employees (full-time equivalents) | 122,635 | 124,995 | |||||||||
| North America | |||||||||||
| Revenue in million | 3,171 | 2,899 | 9.4 | % | 1.8 | % | |||||
| Operating income in million | 304 | 399 | -23.7 | % | -28.7 | % | |||||
| Operating income margin | 9.6 | % | 13.7 | % | |||||||
| Days sales outstanding (DSO) | 58 | 43 | |||||||||
| EMEA | |||||||||||
| Revenue in million | 674 | 670 | 0.7 | % | 2.6 | % | |||||
| Operating income in million | 61 | 80 | -23.3 | % | -18.8 | % | |||||
| Operating income margin | 9.1 | % | 11.9 | % | |||||||
| Days sales outstanding (DSO) | 84 | 85 | |||||||||
| Asia-Pacific | |||||||||||
| Revenue in million | 507 | 471 | 7.6 | % | 4.1 | % | |||||
| Operating income in million | 99 | 85 | 15.9 | % | 14.1 | % | |||||
| Operating income margin | 19.5 | % | 18.1 | % | |||||||
| Days sales outstanding (DSO) | 95 | 102 | |||||||||
| Latin America | |||||||||||
| Revenue in million | 183 | 159 | 15.4 | % | 15.3 | % | |||||
| Operating income in million | 11 | 7 | 67.7 | % | 50.8 | % | |||||
| Operating income margin | 6.1 | % | 4.2 | % | |||||||
| Days sales outstanding (DSO) | 126 | 128 | |||||||||
| Corporate | |||||||||||
| Revenue in million | 13 | 11 | 12.0 | % | 7.5 | % | |||||
| Operating income in million | (127 | ) | (97 | ) | 32.7 | % | 30.2 | % |
All values are in Euros.
cc= constant currency. Changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA andother items include the impact of changes in foreign currency exchange rates. We calculate these non-IFRS financial measures at constantexchange rates to show changes in our revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaAand other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currencyare translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constantcurrency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the priorperiod. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’syear-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRSmeasure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by thedesignated term "Constant Currency".
| Segmentinformation | page 3 of 8 | May 4, 2022 |
|---|
Balancesheet
| in € million, except for net leverage ratio, unaudited | March 31 | December 31 | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Assets | ||||||
| Current assets | 8,039 | 7,967 | ||||
| Goodwill and intangible assets | 16,109 | 15,821 | ||||
| Right of use assets | 4,274 | 4,316 | ||||
| Other non-current assets | 6,302 | 6,263 | ||||
| Total assets | 34,724 | 34,367 | ||||
| Liabilities and equity | ||||||
| Current liabilities | 6,377 | 7,258 | ||||
| Non-current liabilities | 13,808 | 13,130 | ||||
| Total equity | 14,539 | 13,979 | ||||
| Total liabilities and equity | 34,724 | 34,367 | ||||
| Equity/assets ratio | 42 | % | 41 | % | ||
| Debt and lease liabilities | ||||||
| Short-term debt from unrelated parties | 970 | 1,178 | ||||
| Short-term debt from related parties | 145 | 78 | ||||
| Current portion of long-term debt | 59 | 668 | ||||
| Current portion of lease liabilities from unrelated parties | 650 | 640 | ||||
| Current portion of lease liabilities from related parties | 22 | 21 | ||||
| Long-term debt, less current portion | 7,452 | 6,647 | ||||
| Lease liabilities from unrelated parties, less current portion | 3,951 | 3,990 | ||||
| Lease liabilities from related parties, less current portion | 94 | 98 | ||||
| Total debt and lease liabilities | 13,343 | 13,320 | ||||
| Minus: Cash and cash equivalents | (1,173 | ) | (1,482 | ) | ||
| Total net debt and lease liabilities | 12,170 | 11,838 | ||||
| Reconciliation of annualized adjusted EBITDA and net<br> leverage ratio to the most directly comparable IFRS financial measures | ||||||
| Net income | 1,127 | 1,219 | ||||
| Income tax expense | 326 | 353 | ||||
| Interest income | (72 | ) | (73 | ) | ||
| Interest expense | 345 | 353 | ||||
| Depreciation and amortization | 1,611 | 1,586 | ||||
| Adjustments^1^ | 173 | 125 | ||||
| Annualized adjusted EBITDA | 3,510 | 3,563 | ||||
| Net leverage ratio | 3.5 | 3.3 |
^1^Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined inthe Syndicated Credit Facility (2022: €9 M; 2021: €13 M), non-cash charges, primarily related to pension expense (2022: €50M; 2021: €49 M), impairment loss (2022: €43 M; 2021: €38 M), as well as costs related to the FME25 Program (2022: €50M; 2021: €25 M) and the impacts related to the War in Ukraine (2022: €21 M).
| Balancesheet | page 4 of 8 | May 4, 2022 |
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Cash flow statement
| in € million, unaudited | Three months ended March 31 | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| Operating activities | ||||||
| Net income | 212 | 304 | ||||
| Depreciation / amortization / impairment loss | 419 | 388 | ||||
| Change in working capital and other non-cash items | (472 | ) | (484 | ) | ||
| Net cash provided by (used in) operating activities | 159 | 208 | ||||
| In percent of revenue | 3.5 | % | 4.9 | % | ||
| Investing activities | ||||||
| Purchases of property, plant and equipment and capitalized development costs | (162 | ) | (184 | ) | ||
| Proceeds from sale of property, plant and equipment | 2 | 5 | ||||
| Capital expenditures, net | (160 | ) | (179 | ) | ||
| Free cash flow | (1 | ) | 29 | |||
| In percent of revenue | 0.0 | % | 0.7 | % | ||
| Acquisitions and investments, net of cash acquired, and<br> purchases of intangible assests | (36 | ) | (106 | ) | ||
| Investments in debt securities | (43 | ) | (11 | ) | ||
| Proceeds from divestitures | 14 | 2 | ||||
| Proceeds from sale of debt securities | 13 | 70 | ||||
| Free cash flow after investing activities | (53 | ) | (16 | ) | ||
| Cash flow | page 5 of 8 | May 4, 2022 | ||||
| --- | --- | --- |
Revenue development
| Same | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| market | ||||||||||||||||
| Change | Organic | treatment | ||||||||||||||
| in €<br> million, unaudited | 2022 | 2021 | Change | at cc | growth | growth^1^ | ||||||||||
| Three months<br> ended March 31, | ||||||||||||||||
| Total<br> revenue | 4,548 | 4,210 | 8.0 | % | 2.7 | % | 1.5 | % | ||||||||
| Health<br> Care Services | 3,607 | 3,325 | 8.5 | % | 2.6 | % | 1.1 | % | -1.4 | % | ||||||
| Health<br> Care Products | 941 | 885 | 6.4 | % | 3.3 | % | 3.2 | % | ||||||||
| North America | 3,171 | 2,899 | 9.4 | % | 1.8 | % | 0.3 | % | ||||||||
| Health<br> Care Services | 2,889 | 2,643 | 9.3 | % | 1.7 | % | 0.0 | % | -2.1 | %<br> ^2^ | ||||||
| Health<br> Care Products | 282 | 256 | 10.3 | % | 2.7 | % | 2.7 | % | ||||||||
| EMEA | 674 | 670 | 0.7 | % | 2.6 | % | 2.0 | % | ||||||||
| Health<br> Care Services | 344 | 332 | 3.6 | % | 5.0 | % | 4.2 | % | -0.8 | % | ||||||
| Health<br> Care Products | 330 | 338 | -2.2 | % | 0.2 | % | -0.1 | % | ||||||||
| Asia-Pacific | 507 | 471 | 7.6 | % | 4.1 | % | 3.6 | % | ||||||||
| Health<br> Care Services | 236 | 228 | 3.5 | % | 2.2 | % | 1.2 | % | 1.6 | % | ||||||
| Health<br> Care Products | 271 | 243 | 11.5 | % | 5.9 | % | 5.9 | % | ||||||||
| Latin America | 183 | 159 | 15.4 | % | 15.3 | % | 15.6 | % | ||||||||
| Health<br> Care Services | 130 | 115 | 13.2 | % | 15.1 | % | 15.5 | % | -1.8 | % | ||||||
| Health<br> Care Products | 53 | 44 | 21.0 | % | 15.9 | % | 15.9 | % | ||||||||
| Corporate | 13 | 11 | 12.0 | % | 7.5 | % | ||||||||||
| Health<br> Care Services | 8 | 7 | 11.2 | % | 4.2 | % | ||||||||||
| Health<br> Care Products | 5 | 4 | 13.2 | % | 13.1 | % |
^1^ Same market treatment growth = organicgrowth less price effects
^2^ U.S. (excl. Mexico), same market treatmentgrowth North America: -2.0% for the three months ended March 31, 2022.
| Revenue development | page 6 of 8 | May 4, 2022 |
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Key metrics Dialysis Care Services
| unaudited | Three months ended March 31, 2022 | **** | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Growth | Growth | Growth | |||||||||||||||
| Clinics | in % | De novos | Patients | in % | Treatments | in % | |||||||||||
| Total | 4,153 | 1 | % | 9 | 343,493 | 0 | % | 12,858,103 | -1 | % | |||||||
| North America | 2,692 | 1 | % | 6 | 207,238 | -1 | % | 7,814,534 | -1 | % | |||||||
| EMEA | 819 | 1 | % | 1 | 65,973 | 2 | % | 2,437,934 | 0 | % | |||||||
| Asia-Pacific | 393 | -2 | % | 2 | 33,523 | 1 | % | 1,179,567 | 1 | % | |||||||
| Latin America | 249 | 1 | % | - | 36,759 | 0 | % | 1,426,068 | -3 | % | |||||||
| Key metrics | page 7 of 8 | May 4, 2022 | |||||||||||||||
| --- | --- | --- |
Quality data^1^
| in % of patients | North<br> America | EMEA | Latin<br> America | Asia-Pacific | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1<br> 2022 | Q1<br> 2021 | Q1<br> 2022 | Q1<br> 2021 | Q1<br> 2022 | Q1<br> 2021 | Q1<br> 2022 | Q1<br> 2021 | |||||||||
| Kt/V ≥ 1.2 | 97 | 97 | 93 | 93 | 92 | 91 | 95 | 93 | ||||||||
| Hemoglobin = 10-12 g/dl | 70 | 69 | 81 | 81 | 49 | 48 | 52 | 50 | ||||||||
| Calcium = 8.4-10.2 mg/dl | 84 | 81 | 79 | 78 | 74 | 74 | 72 | 71 | ||||||||
| Albumin ≥ 3.5 g/dl | 84 | 80 | 89 | 90 | 90 | 89 | 89 | 89 | ||||||||
| Phosphate ≤ 5.5 mg/dl | 57 | 58 | 78 | 79 | 77 | 76 | 63 | 63 | ||||||||
| Patients without catheter (after<br> 90 days) | 78 | 79 | 76 | 77 | 77 | 78 | 79 | 81 | ||||||||
| in days | ||||||||||||||||
| Days in hospital per patient<br> year (global basis) | 10.7 | 11.1 | (Q1 2021) |
^1^ Definitions cf. AnnualReport 2021, Section "Non-Financial Group Report"
| Quality data | page 8 of 8 | May 4, 2022 |
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