Fresenius Medical Care AG 6-K, filed Jul 30, 2021
Fresenius Medical Care AG (FMS)
About this 6-K
Fresenius Medical Care AG filed this 6-K on July 30, 2021.
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 July 2021
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): ¨
On July 30, 2021, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its second quarter results for the period ending June 30, 2021. 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 second quarter 2021 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 July 30, 2021. | |
| Exhibit 99.2 | Complete overview of the second quarter 2021 and first six months 2021. |
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: July 30, 2021
| Fresenius Medical Care AG & Co. KGaA, | |
| a partnership limited by shares, represented by: | |
| fresenius medical care management ag, its | |
| General Partner | |
| 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 Dr. Dominik Heger T +49 6172 609-2601 dominik.heger@fmc-ag.com
www.freseniusmedicalcare.com |
July 30, 2021
Fresenius Medical Care reports results in line with expectations for the second quarter and confirms 2021 outlook
| - | As assumed, COVID-19 pandemic continued to impact organic growth in dialysis and downstream businesses | |
| - | Patient excess mortality rates significantly reduced | |
| - | Negative exchange rate effects continue | |
| - | Earnings development impacted by phasing and strong prior-year base, as indicated | |
| - | Financial targets for FY 2021 confirmed | |
| - | FME25 program on track |
Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “The fact that we saw further easing in COVID-19-related excess mortality among our patients – both on a monthly basis and when looking at a rolling 12-month period – is for sure the good news we hoped for and expected to share today. We are cautious and continue to watch the Delta variant and the increasing macro-economic inflationary impacts.
COVID-19 continues to impact the number of treatments in our dialysis business, the development in our downstream businesses and the speed of closing acquisitions. As indicated in May, we saw the expected significant earnings decline in the second quarter. In addition to the current effects of the pandemic, this was due to the strong prior-year base and the reversal of the favorable phasing of costs we saw in the first quarter. Based on our defined assumptions and the business performance in the first half of the year, we confirm our outlook for the full year 2021.”
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Key figures (IFRS)
Q2 2021 EUR m |
Q2 2020 EUR m |
Growth yoy |
Growth yoy, cc |
H1 2021 EUR m |
H1 2020 EUR m |
Growth yoy |
Growth yoy, cc | |
| Revenue | 4,320 | 4,557 | -5% | +2% | 8,530 | 9,045 | -6% | +2% |
Operating income excl. special items1 |
424 430 |
656 656 |
-35% -34% |
-30% -29% |
898 907 |
1,211 1,211 |
-26% -25% |
-20% -19% |
Net income2 excl. special items1 |
219 223 |
351 351 |
-38% -37% |
-33% -31% |
468 474 |
634 634 |
-26% -25% |
-21% -20% |
Basic EPS (EUR) excl. special items1 |
0.75 0.76 |
1.20 1.20 |
-38% -37% |
-33% -31% |
1.60 1.62 |
2.15 2.15 |
-26% -25% |
-20% -19% |
cc = at constant currency, EPS = earnings per share
COVID-19-related excess mortality declined, but continued to adversely affect the business
As expected, COVID-19 related incremental excess mortality among Fresenius Medical Care’s patients has further declined – from 3,100 patients in the first to approximately 1,500 in the second quarter. Thus, it amounted to approximately 11,200 patients in the past 12 months (as of June 30, 2021) and approximately 15,000 since the start of the pandemic. The decrease on a quarterly basis is also a result of continued progress made in patient vaccination, which has led to a further decline in global infection rates. At the end of the second quarter, approximately 71% of Fresenius Medical Care’s patients in the U.S. have received at least one dose, with a high proportion of them already fully vaccinated. On a global basis, also approximately 71% of Fresenius Medical Care’s patients have received at least one vaccination.
Fresenius Medical Care continues to monitor closely the recent COVID-19-related developments, in particular regarding the global spread of the Delta variant and any potential new waves.
As expected, COVID-19-related excess mortality of dialysis patients not only led to an underutilization of Fresenius Medical Care’s dialysis clinics, but also impacted downstream businesses in the first half of the year. Here, the U.S. Healthcare Products as well as the pharmacy business were affected by significantly lower than expected volumes.
The anticipated decline in incremental excess mortality has led to a smaller impact in Q2 than in Q1. The overall adverse COVID-19 impact from accumulated excess mortality on
| 1 | Costs related to the FME25 program |
| 2 | Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA |
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organic growth in the Health Care Services business amounted to around 240 basis points in the second quarter and 290 basis points in the first half of 2021.
Outlook
Based on the results for the second quarter and first half, Fresenius Medical Care confirms its outlook for FY 2021 as outlined in February. The Company expects revenue to grow at a low- to mid-single digit percentage rate and net income to decline at a high-teens to mid-twenties percentage rate against the 2020 base.3 This outlook is based on the assumption of a return to normalized mortality rates in the second half of 2021.
To support its 2025 strategy, further strengthen profitability and compensate for the negative earnings effects of the COVID-19 pandemic, Fresenius Medical Care has initiated the FME25 program. The Company reconfirms its targets and is on track with its work regarding the operating model transformation and efficiency measures. Fresenius Medical Care will provide an update in the fall.
Driving sustainability efforts
Sustainability is an integral part of Fresenius Medical Care’s mission and vision and is reflected in the corporate strategy. The Company is committed to implementing global sustainability standards in its operations around the world. To this end, Fresenius Medical Care is further driving forward its Global Sustainability Program and ESG initiatives:
Fresenius Medical Care has recently joined econsense, a network of companies united in the goal of shaping the transformation to a sustainable economy and society. The dialogue and cross-industry exchange of practical expertise within econsense, which now counts 40 major companies as members, will further support Fresenius Medical Care’s sustainability management.
In July, Fresenius Medical Care has further underlined its commitment to create value in ecological, social and economic terms by signing its first sustainability-linked financing instrument. The Company’s new EUR 2 billion syndicated revolving credit facility includes a component that links its margin development to sustainability performance.
| 3 | These targets are based on the 2020 results excluding the impairment of goodwill and trade names in the Latin America Segment of EUR 195 million. They are inclusive of anticipated COVID19 effects, in constant currency and exclude special items. Special items include costs related to FME25 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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Earnings impacted by COVID-19, negative exchange rate effects and a high prior-year base
Revenue in the second quarter decreased by 5% to EUR 4,320 million (+2% at constant currency, +1% organic).
Health Care Services revenue in the second quarter declined by 6% to EUR 3,400 million (+2% at constant currency, +1% organic). The increase in organic growth in the international regions was more than offset by negative exchange rate effects in all regions as well as by the adverse COVID-19 impact and a lower reimbursement for Calcimimetics in North America.
Health Care Products revenue decreased by 2% to EUR 920 million (+2% at constant currency, +1% organic). The positive organic growth development was mainly driven by higher sales of in-center disposables in EMEA and Asia-Pacific, machines for chronic treatment and renal pharmaceuticals. This positive development was offset mainly by negative exchange rate effects and lower sales of acute care products compared to a strong prior-year base.
In the first half, revenue declined by 6% to EUR 8,530 million (+2% at constant currency, +1% organic). Health Care Services revenue decreased by 7% to EUR 6,726 million (+1% at constant currency, +1% organic); Health Care products revenue declined by 2% to EUR 1,804 million (+3% at constant currency, +3% organic).
Operating income decreased by 35% to EUR 424 million in the second quarter (-30% at constant currency), resulting in a margin of 9.8% (Q2 2020: 14.4%). Operating income excluding special items declined by 34% to EUR 430 million (-29% at constant currency), resulting in a margin of 10.0%. The decrease was mainly due to the adverse impact of the COVID-19 pandemic, including a high prior-year base as a result of government relief funding, the expected phasing and increase in Sales, General and Administrative expense, negative exchange rate effects and higher direct costs. These effects were partially offset in particular by an improved Medicare Advantage payor mix in the U.S.
In the first half, operating income decreased by 26% to EUR 898 million (-20% at constant currency), resulting in a margin of 10.5% (H1 2020: 13.4%). Operating income excluding special items declined by 25% to EUR 907 million (-19% at constant currency), resulting in a margin of 10.6%.
Net income2 decreased by 38% to EUR 219 million in the second quarter (-33% at constant currency). Net income excluding special items declined by 37% to EUR 223 million (-31% at constant currency).
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In the first half, net income decreased by 26% to EUR 468 million (-21% at constant currency). Net income excluding special items declined by 25% to EUR 474 million (-20% at constant currency).
Basic earnings per share (EPS) decreased by 38% to EUR 0.75 (-33% at constant currency) in the second quarter. EPS excluding special items declined by 37% to EUR 0.76 (-31% at constant currency).
In the first half, EPS decreased by 26% to EUR 1.60 (-20% at constant currency). EPS excluding special items declined by 25% to EUR 1.62 (-19% at constant currency).
Cash flow development
In the second quarter, Fresenius Medical Care generated EUR 921 million of operating cash flow (Q2 2020: EUR 2,319 million), resulting in a margin of 21.3% (Q2 2020: 50.9%). The decline was mainly due to the U.S. federal government’s payments in the second quarter of 2020 under the CARES Act, the start of recoupment of these advanced payments in the second quarter of 2021 as well as the timing of certain other expense payments in 2021. In the first half, operating cash flow amounted to EUR 1,129 million (H1 2020: EUR 2,903 million), resulting in a margin of 13.2% (H1 2020: 32.1%).
Fresenius Medical Care generated EUR 720 million of free cash flow4 (Q2 2020: EUR 2,103 million) in the second quarter, resulting in a margin of 16.7% (Q2 2020: 46.1%). In the first half, Free cash flow amounted to EUR 749 million (H1 2020: EUR 2,407 million), resulting in a margin of 8.8% (H1 2020: 26.6%).
Regional developments
In North America, revenue decreased by 9% to EUR 2,953 million in the second quarter (stable at constant currency, -1% organic). Besides a sizable negative exchange rate effect, this was mainly due to the adverse COVID-19 impact on both the Health Care Services and Health Care Products businesses along with associated downstream effects and a lower reimbursement for Calcimimetics. In the first half, revenue decreased by 9% to EUR 5,852 million (stable at constant currency, -1% organic).
Operating income in North America decreased by 35% to EUR 398 million in the second quarter (-29% at constant currency), resulting in a margin of 13.5% (Q2 2020: 18.8%). The decline was mainly due to the adverse impact of COVID-19, including a high prior-year base mainly driven by government relief funding, negative exchange rate effects, increased
| 4 | Net cash provided by / used in operating activities, after capital expenditures, before acquisitions, investments and dividends |
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direct costs and an unfavorable impact from Calcimimetics. This was partially offset by an improved Medicare Advantage payor mix. In the first half, operating income declined by 26% to EUR 796 million (-19% at constant currency), resulting in a margin of 13.6% (H1 2020: 16.7%).
Revenue in EMEA increased by 1% and amounted to EUR 693 million in the second quarter (+2% at constant currency, +2% organic). This was mainly driven by an increase in Health Care Product revenue due to higher sales of acute cardiopulmonary products, renal pharmaceuticals and machines for chronic treatment, partially offset by lower sales of products for acute treatments and negative exchange rate effects. In the first half, revenue was stable and amounted to EUR 1,362 million (+2% at constant currency, +2% organic).
Operating income in the EMEA region decreased by 5% to EUR 73 million in the second quarter (-5% at constant currency), resulting in a margin of 10.6% (Q2 2020: 11.3%). The decline was mainly driven by negative foreign currency transaction effects, higher costs of revenue as well as higher Sales, General and Administrative expense. This was partially offset by the lower prior year base due to an impairment recorded in 2020 for a license held by the joint venture with Vifor Pharma. In the first half, operating income decreased by 14% to EUR 153 million (-14% at constant currency), resulting in a margin of 11.2% (H1 2020: 13.1%).
In Asia-Pacific, revenue increased by 8% to EUR 486 million in the second quarter (+11% at constant currency, +10% organic). This was mainly driven by an increase in Health Care Services revenue, primarily due to a recovery in elective procedures, which was partially offset by exchange rate effects. In the first half, revenue grew by 7% to EUR 957 million (+11% at constant currency, +11% organic).
Operating income increased by 33% to EUR 84 million in the second quarter (+38% at constant currency), resulting in a margin of 17.3% (Q2 2020: 14.1%). The increase was mainly driven by favorable business growth and the above-mentioned recovery in elective procedures, partially offset by unfavorable foreign currency transaction effects. In the first half, operating income grew by 21% to EUR 170 million (+25% at constant currency), resulting in a margin of 17.7% (H1 2020: 15.7%).
Despite a very significant headwind from exchange rates and the adverse impact of COVID-19, Latin America revenue increased by 1% to EUR 171 million in the second quarter (+17% at constant currency, +14% organic). This was mainly driven by an increase in Health Care Services revenue. In the first half, revenue decreased by 2% to EUR 330 million (+17% at constant currency, +15% organic).
Operating income in Latin America decreased by 76% to EUR 3 million in the second quarter (-82% at constant currency), resulting in a margin of 1.5% (Q2: 2020: 6.4%). The decline was driven by increased bad debt expense in Colombia. In the first half,
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operating income declined by 48% to EUR 9 million (-49% at constant currency), resulting in a margin of 2.8% (H1 2020: 5.3%).
Patients, Clinics and Employees
As of June 30, 2021, Fresenius Medical Care treated 345,646 patients in 4,125 dialysis clinics worldwide. At the end of the second quarter, the Company had 123,538 employees (full-time equivalents) worldwide, compared to 124,736 employees as of June 30, 2020.
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the second quarter and first half of 2021 on July 30, 2021 at 3:30 p.m. CEST / 9:30 a.m. EDT. 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 of the second quarter and first half of 2021. 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 3.7 million patients worldwide regularly undergo dialysis treatment. Through its network of more than 4,100 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approximately 346,000 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 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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Exhibit 99.2
Fresenius Medical Care AG & Co. KGaACOMPLETE OVERVIEW OF THE SECOND QUARTER 2021 AND FIRST HALF YEAR 2021 July 30, 2021Investor Relations phone: +49 6172 609 2525 email: ir@fmc-ag.comContent: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 8Reconciliation results excl. special items page 9Outlook 2021 page 10DisclaimerThis 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, 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
Statement
of earnings in € million, except share data, unauditedThree months ended June 30, Six months ended June 30,2021 2020 Change Change
at cc2021 2020 Change Change at ccHealth Care Services 3,400 3,614 -5.9% 2.3% 6,726 7,209 -6.7% 1.5% Health Care Products 920 943 -2.5%
1.5% 1,804 1,836 -1.7% 2.9% Total revenue 4,320 4,557 -5.2% 2.1% 8,530 9,045 -5.7% 1.7%Costs of revenue 3,036 3,143 -3.4% 4.3% 6,039
6,241 -3.2% 4.7% Gross profit 1,284 1,414 -9.2% -2.7% 2,491 2,804 -11.2% -4.8% Selling, general and administrative 830 711 16.7% 24.4%
1,542 1,521 1.3% 8.3% Research and development 52 51 3.0% 7.2% 101 96 4.4% 8.6% Income from equity method investees (22) (4) 474.1% 481.8%
(50) (24) 106.4% 108.0% Operating income 424 656 -35.3% -29.9% 898 1,211 -25.8% -20.0% Operating income margin 9.8% 14.4% 10.5% 13.4%Interest
income (14) (11) 24.8% 32.6% (29) (20) 46.6% 55.7% Interest expense 83 103 -19.3% -13.5% 174 216 -19.2% -13.4% Interest expense, net
69 92 -24.7% -19.1% 145 196 -25.9% -20.4% Income before taxes 355 564 -37.1% -31.7% 753 1,015 -25.8% -19.9% Income tax expense 75 137
-45.1% -40.1% 169 237 -28.8% -23.2% Net income 280 427 -34.5% -29.0% 584 778 -24.9% -18.9% Net income attributable to noncontrolling
interests 61 76 -19.5% -11.9% 116 144 -18.8% -11.3%Net income attributable to shareholders of FMC-AG & Co. KGaA 219 351 -37.7% -32.7%
468 634 -26.2% -20.7%Operating income 424 656 -35.3% -29.9% 898 1,211 -25.8% -20.0% Depreciation, amortization and impairment loss 396
410 -3.6% 3.3% 784 811 -3.4% 3.8% EBITDA 820 1,066 -23.1% -17.1% 1,682 2,022 -16.8% -10.5% EBITDA margin 19.0% 23.4% 19.7% 22.4%Weighted
average number of shares 292,913,910 292,733,283 292,896,096 295,287,813Basic earnings per share €0.75 €1.20 -37.8% -32.7%
€1.60 €2.15 -25.6% -20.0% Basic earnings per ADS €0.37 €0.60 -37.8% -32.7% €0.80 €1.07 -25.6% -20.0%Statement
of earnings page 2 of 10 July 30, 2021
Segment
information unauditedThree months ended June 30, Six months ended June 30,2021 2020 Change Change at cc2021 2020 Change Change at ccTotal
Revenue in € million 4,320 4,557 -5.2% 2.1% 8,530 9,045 -5.7% 1.7% Operating income in € million 424 656 -35.3% -29.9% 898
1,211 -25.8% -20.0% Operating income margin 9.8% 14.4% 10.5% 13.4% Days sales outstanding (DSO) 58 53 Employees (full-time equivalents)
123,538 124,736North America Revenue in € million 2,953 3,240 -8.9% -0.2% 5,852 6,426 -8.9% -0.4% Operating income in € million
398 609 -34.8% -28.5% 796 1,073 -25.8% -18.9% Operating income margin 13.5% 18.8% 13.6% 16.7% Days sales outstanding (DSO) 37 30EMEA
Revenue in € million 693 687 0.8% 2.1% 1,362 1,366 -0.3% 1.8% Operating income in € million 73 78 -5.5% -5.1% 153 179 -14.2%
-13.8% Operating income margin 10.6% 11.3% 11.2% 13.1% Days sales outstanding (DSO) 87 92Asia-Pacific Revenue in € million 486 450
7.8% 11.5% 957 893 7.1% 10.5% Operating income in € million 84 63 33.0% 38.2% 170 140 21.0% 24.7% Operating income margin 17.3%
14.1% 17.7% 15.7% Days sales outstanding (DSO) 105 113Latin America Revenue in € million 171 170 0.8% 16.6% 330 338 -2.2% 16.8%
Operating income in € million 3 11 -76.2% -81.7% 9 18 -48.1% -49.2% Operating income margin 1.5% 6.4% 2.8% 5.3% Days sales outstanding
(DSO) 135 139Corporate Revenue in € million 17 10 71.0% 82.5% 29 22 31.4% 39.8% Operating income in € million (134) (105) 26.8%
32.1% (230) (199) 15.8% 20.5%Segment information page 3 of 10 July 30, 2021
Balance
sheet in € million, except for net leverage ratio, unaudited June 30 December 31 2021 2020Assets Current assets 7,815 7,275 Goodwill
and intangible assets 14,891 14,340 Right of use assets 4,209 4,130 Other non-current assets 6,072 5,944 Total assets 32,987 31,689Liabilities
and equity Current liabilities 7,425 6,160 Non-current liabilities 12,750 13,198 Total equity 12,812 12,331 Total liabilities and equity
32,987 31,689Equity/assets ratio 39 % 39 %Debt and lease liabilities Short-term debt from unrelated parties 1,322 63 Short-term debt
from related parties 63 17 Current portion of long-term debt 635 1,008 Current portion of long-term lease liabilities from unrelated
parties 606 588 Current portion of long-term lease liabilities from related parties 21 21 Long-term debt, less current portion 6,499
6,800 Long-term lease liabilities from unrelated parties, less current portion 3,861 3,764 Long-term lease liabilities from related parties,
less current portion 109 119 Total debt and lease liabilities 13,116 12,380 Minus: Cash and cash equivalents (1,408) (1,082) Total net
debt and lease liabilities 11,708 11,298Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable
IFRS financial measures Net income 1,243 1,435 Income tax expense 432 501 Interest income (51) (42) Interest expense 368 410 Depreciation
and amortization 1,556 1,587 Adjustments ¹ 256 249 Annualized adjusted EBITDA 3,804 4,140Net leverage ratio 3.1 2.7¹ Acquisitions
and divestitures made for the last twelve months with a purchase price above a €50 M threshold as was defined in the Amended 2012
Credit Agreement (2021: €4 M), non-cash charges, primarily related to pension expense (2021: €50 M; 2020: €50 M) and impairment
loss (2021: €202 M; 2020: €199 M).Balance sheet page 4 of 10 July 30, 2021
Cash
flow statementin € million, unauditedThree months ended June 30,Six months ended June 30,2021 2020 2021 2020 Operating activitiesNet
income 280 427 584 778 Depreciation / amortization / impairment loss 396 410 784 811 Change in working capital and other non-cash items
245 1,482 (239) 1,314 Net cash provided by (used in) operating activities 921 2,319 1,129 2,903 In percent of revenue 21.3% 50.9% 13.2%
32.1%Investing activitiesPurchases of property, plant and equipment and capitalized development costs (209) (218) (394) (500) Proceeds
from sale of property, plant and equipment 8 2 14 4 Capital expenditures, net (201) (216) (380) (496)Free cash flow 720 2,103 749 2,407
In percent of revenue 16.7% 46.1% 8.8% 26.6%Acquisitions and investments, net of cash acquired, and purchases of intangible assets (22)
(41) (129) (79) Investments in debt securities (52) (28) (62) (29) Proceeds from divestitures 0 1 2 (1) Proceeds from sale of debt securities
26 4 96 12 Free cash flow after investing activities 672 2,039 656 2,310Cash flow page 5 of 10 July 30, 2021
Revenue developmentin € million, unaudited2021 2020 Change Change at ccOrganic growthSame market treatment growth¹Three months ended June 30, Total revenue 4,320 4,557 -5.2% 2.1% 1.3% Health Care Services 3,400 3,614 -5.9% 2.3% 1.3% -1.4% Health Care Products 920 943 -2.5% 1.5% 1.4%North America 2,953 3,240 -8.9% -0.2% -0.9% Health Care Services 2,695 2,951 -8.7% 0.0% -0.8% -1.8% ² Health Care Products 258 289 -10.7% -2.2% -2.2%EMEA 693 687 0.8% 2.1% 1.6% Health Care Services 341 341 0.3% 1.5% 0.3% -3.8% Health Care Products 352 346 1.4% 2.7% 3.0%Asia-Pacific 486 450 7.8% 11.5% 10.2% Health Care Services 227 196 15.8% 22.1% 19.1% 5.8% Health Care Products 259 254 1.7% 3.3% 3.4%Latin America 171 170 0.8% 16.6% 14.5% Health Care Services 123 119 3.1% 21.6% 20.8% 3.4% Health Care Products 48 51 -4.8% 4.7% 0.6%Corporate 17 10 71.0% 82.5% Health Care Services 14 7 107.0% 125.5% Health Care Products 3 3 12.9% 13.2%Six months ended June 30, Total revenue 8,530 9,045 -5.7% 1.7% 1.4% Health Care Services 6,726 7,209 -6.7% 1.5% 0.9% -1.4% Health Care Products 1,804 1,836 -1.7% 2.9% 3.0%North America 5,852 6,426 -8.9% -0.4% -0.8% Health Care Services 5,338 5,859 -8.9% -0.4% -0.8% -2.2% ² Health Care Products 514 567 -9.4% -0.9% -0.9%EMEA 1,362 1,366 -0.3% 1.8% 1.5% Health Care Services 674 682 -1.1% 1.2% 0.3% -3.3% Health Care Products 688 684 0.6% 2.3% 2.7%Asia-Pacific 957 893 7.1% 10.5% 10.5% Health Care Services 455 414 9.9% 14.7% 14.6% 6.6% Health Care Products 502 479 4.7% 7.0% 7.1%Latin America 330 338 -2.2% 16.8% 14.7% Health Care Services 238 240 -0.9% 19.8% 17.9% 2.9% Health Care Products 92 98 -5.6% 9.2% 7.4%Corporate 29 22 31.4% 39.8% Health Care Services 21 14 52.5% 66.3% Health Care Products 8 8 -0.8% -0.6% ¹ same market treatment growth = organic growth less price effects ² U.S. (excl. Mexico), same market treatment growth North America: -2.4% for the three months and -2.7% for the six months ended June 30, 2021.Revenue development page 6 of 10 July 30, 2021
Key
metrics Dialysis Care Services unauditedClinics Growth in %Six months ended June 30, 2021 De novos Patients Growth in %Treatments Growth
in %Total 4,125 2% 45 345,646 -1% 26,212,741 -1%North America 2,662 2% 19 210,621 -1% 16,006,110 -2% EMEA 815 2% 15 65,401 -3% 4,903,686
-3% Asia-Pacific 404 6% 10 33,491 5% 2,357,958 3% Latin America 244 0% 1 36,133 -1% 2,944,987 2%Key metrics page 7 of 10 July 30, 2021
Quality
data¹ in % of patientsNorth AmericaEMEALatin AmericaAsia-PacificQ2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020
Kt/V ≥ 1.2 97 97 93 93 94 90 94 94 Hemoglobin = 10-12 g/dl 72 73 82 82 49 46 51 52 Calcium = 8.4-10.2 mg/dl 81 81 77 77 74 75 71 72
Albumin ≥ 3.5 g/dl1) 80 80 89 89 91 90 88 89 Phosphate ≤ 5.5 mg/dl 56 57 78 77 77 77 65 65 Patients without catheter (after 90
days) 79 80 77 77 78 79 81 81 in days Days in hospital per patient year 9.8 9.8 7.9 7.3 4.1 3.9 4.0 2.6 ¹ Definitions cf. Annual
Report 2020, Section "Non-Financial Group Report"Quality data page 8 of 10 July 30, 2021
Reconciliation
of non-IFRS financial measures to the most directly comparable IFRS financial measuresResultsFME25Results 2021Results excl. special items
Results Changein € million, except share data, unaudited2021programexcl. special items2020 Changeat ccThree months ended June 30,
Total revenue 4,320 4,320 4,557 -5.2% 2.1%EBITDA 820 6 826 1,066 -22.6% -16.6%Total operating income 424 6 430 656 -34.4% -29.0% North
America 398 398 609 -34.8% -28.5% EMEA 73 73 78 -5.5% -5.1% Asia-Pacific 84 84 63 33.0% 38.2% Latin America 3 3 11 -76.2% -81.7% Corporate
(134) 6 (128) (105) 21.2% 26.5%Interest expense, net 69 69 92 -24.7% -19.1%Income tax expense 75 2 77 137 -43.9% -38.9%Net income attributable
to noncontrolling interests 61 61 76 -19.5% -11.9%Net income¹ 219 4 223 351 -36.5% -31.4%Basic earnings per share €0.75 €0.01
€0.76 €1.20 -36.5% -31.5%Six months ended June 30, Total revenue 8,530 8,530 9,045 -5.7% 1.7%EBITDA 1,682 9 1,691 2,022 -16.4%
-10.0%Total operating income 898 9 907 1,211 -25.1% -19.3% North America 796 796 1,073 -25.8% -18.9% EMEA 153 153 179 -14.2% -13.8% Asia-Pacific
170 170 140 21.0% 24.7% Latin America 9 9 18 -48.1% -49.2% Corporate (230) 9 (221) (199) 11.5% 16.2%Interest expense, net 145 145 196
-25.9% -20.4%Income tax expense 169 3 172 237 -27.8% -22.2%Net income attributable to noncontrolling interests 116 116 144 -18.8% -11.3%Net
income¹ 468 6 474 634 -25.2% -19.7%Basic earnings per share €1.60 €0.02 €1.62 €2.15 -24.6% -19.0%¹ Attributable
to shareholders of FMC-AG & Co. KGaAReconciliation results excl. special items page 9 of 10July 30, 2021
Outlook
2021 Results 2020 Outlook 2021 (at Constant Currency, except for ROIC)Revenue¹ €17,859 M growth: low to mid single digit percentage
rate Revenue growth at Constant Currency¹ growth: low to mid single digit percentage rate Operating income¹ €2,499 M decline:
mid teens to low twenties percentage rate Net income¹, ² €1,359 M decline: high teens to mid twenties percentage rate
Net income² growth at Constant Currency¹ decline: high teens to mid twenties percentage rate ROIC¹,³ 6.6% ≥ 5.0%¹
Outlook 2021 is inclusive of anticipated COVID-19 effects and excl. special items. Special items include costs related to the FME25 program
and effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.
The growth rates are based on the results 2020 excl. the Impairment Charge of goodwill and trade names in the Latin America Segment of
€195 M. ² Net income attributable to shareholders of FMC-AG & Co. KGaA. ³ Results 2020: excl. Impairment Charge.Outlook
2021 page 10 of 10 July 30, 2021