Fresenius Medical Care AG 6-K, filed May 6, 2020
Fresenius Medical Care AG (FMS)
About this 6-K
Fresenius Medical Care AG filed this 6-K on May 6, 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 May 2020
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 o
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): o
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): o
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 o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82
On May 6, 2020, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its first quarter results for the period ending March 31, 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 first quarter 2020 consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measure of (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) delivered operating income (earnings before interest and taxes), (c) free cash flow, 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 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.
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DATE: May 6, 2020 |
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FRESENIUS MEDICAL CARE AG & Co. KGaA, | ||
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a partnership limited by shares, represented by: | ||
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FRESENIUS MEDICAL CARE MANAGEMENT AG, its | ||
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General Partner | ||
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By: |
/s/ RICE POWELL | |
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Name: |
Rice Powell |
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Title: |
Chief Executive Officer and |
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By: |
/s/ HELEN GIZA | |
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Name: |
Helen Giza |
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Title: |
Chief Financial Officer and |
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Press Release |
Media Contact |
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Matthias Link |
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T +49 6172 609-2872 |
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matthias.link@fmc-ag.com |
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Contact for analysts and investors |
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Dr. Dominik Heger |
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T +49 6172 609-2601 |
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dominik.heger@fmc-ag.com |
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www.freseniusmedicalcare.com |
May 6, 2020
Fresenius Medical Care posts solid first quarter results underlining resilience of business model
· 9% revenue increase supported by growth in all regions
· Positive earnings growth despite negative impact from COVID-19 pandemic
· Solid cash-flow development
· Financial targets for FY2020 confirmed
Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “In these unprecedented times, it is our first and foremost priority to maintain the continuity and high quality of care. For months now, our employees have been working tirelessly to ensure that our patients receive their life-saving dialysis treatments. I cannot thank them enough. We appreciate the financial commitment that the U.S. administration has given in April to support healthcare providers. The strong revenue growth in the first quarter shows that the underlying business development remains intact and that our business model is resilient. In a global pandemic that is redefining priorities in other areas of the healthcare system, dialysis remains essential for millions of patients worldwide.”
Fresenius Medical Care’s contribution in the fight against COVID-19
In order to ensure the continuity and high quality of care for dialysis patients during the COVID-19 pandemic and support its employees around the globe, Fresenius Medical Care has taken wide-ranging measures at a very early stage. The focus is on reducing the risk of infection in dialysis clinics for patients and employees.
Despite countries’ lockdown efforts to contain the COVID-19 pandemic, Fresenius Medical Care did not experience any major disruptions in its manufacturing facilities. As of today, all manufacturing plants worldwide are in operation and supply chains remain intact.
Costs in respect to the COVID-19 pandemic have been incurred for additional measures, like personal protective equipment, dedicated capacities for isolated treatments, additional personnel expense, patient transportation as well as increased distribution logistic costs.
Under the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), the U.S. government initiated significant financial support for the health sector. This is intended, for example, to compensate for the increased costs for healthcare providers as a result of the COVID-19 pandemic and the corresponding protective measures. While Fresenius Medical Care had to adsorb a sizable negative impact in Q1, there is no benefit from the CARES Act included in the reported results.
In the U.S., Fresenius Medical Care is cooperating with other dialysis providers, to create isolation clinics and dedicated shifts for patients who are or may be infected with COVID-19. A critical aim of this collaboration is to keep dialysis patients out of the hospital whenever possible, freeing up limited hospital resources. In doing so, Fresenius Medical Care not only fulfils its responsibility towards patients, employees and families, but also makes an important contribution to the healthcare system and society as a whole.
Key figures (IFRS)
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Q1 2020 |
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Q1 2019 |
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Growth yoy |
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Growth yoy, |
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Revenue |
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4,488 |
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4,133 |
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9 |
% |
7 |
% |
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Operating income |
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555 |
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537 |
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3 |
% |
1 |
% |
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Net income(1) |
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283 |
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271 |
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4 |
% |
2 |
% |
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Net income adjusted(1),(2) |
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283 |
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286 |
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-1 |
% |
-3 |
% |
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Basic EPS (EUR) |
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0.95 |
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0.88 |
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8 |
% |
5 |
% |
cc = at constant currency, EPS = earnings per share
(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
2020 targets confirmed: mid to high single digit growth rates
On the basis of the guidance given in February, which excludes the impact from the COVID-19 pandemic, Fresenius Medical Care expects both revenue and net income to grow at a mid to high single digit rate in 2020. These targets are in constant currency, exclude special items(3) and are based on the adjusted results 2019 including the effects of the operations of the NxStage acquisition and the IFRS 16 implementation.
Patients, Clinics and Employees
As of March 31, 2020, Fresenius Medical Care treated 348,703 patients in 4,002 dialysis clinics worldwide. At the end of the first quarter, the Company had 121,403 employees (full-time equivalents) worldwide, compared to 118,308 employees as of March 31, 2019.
Strong revenue growth in the first quarter
Revenue increased by 9% to EUR 4,488 million (+7% at constant currency), with organic growth of 4%. Health Care Services revenue rose by 8% to EUR 3,595 million (+7% at constant currency), driven by growth in same market treatments, contributions from acquisitions and an increase in dialysis days. Health Care Products revenue grew by 10% and amounted to EUR 893 million (+9% at constant currency). This increase was mainly due to higher sales of products for acute care treatments, renal pharmaceuticals and bloodlines partially offset by lower sales of dialysis machines.
Operating income increased by 3% to EUR 555 million (+1% at constant currency), mainly driven by a favorable impact from higher treatment volume and lower costs for pharmaceuticals. The operating income margin amounted to 12.4% (Q1 2019: 13.0%). The decrease in margin was largely due to the unfavorable COVID-19 pandemic effect and the prior year reduction of a contingent consideration liability related to Xenios.
Despite the negative impact from the COVID-19 pandemic net income(1) grew by 4% to EUR 283 million (+2% at constant currency) and declined on an adjusted basis by only 1% (-3% at constant currency). On the defined basis of the 2020 targets - excluding the negative impact from the COVID-19 pandemic - net income growth in the first quarter is at the top end of the target range for 2020.
Basic earnings per share (EPS) increased by 8% to EUR 0.95 (+5% at constant currency) driven by the earnings effects described above coupled with a decrease in the average weighted shares outstanding.
(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.
Solid cash-flow development
Fresenius Medical Care generated EUR 584 million of operating cash flow (Q1 2019: EUR 76 million) resulting in a margin of 13.0% (Q1 2019: 1.8%). The increase was largely driven by working capital improvement, including a positive effect from cash collections, timing of payments and change in year over year inventory levels.
Free cash flow (net cash used in operating activities, after capital expenditures, before acquisitions and investments) amounted to EUR 304 million (Q1 2019: EUR -123 million), resulting in a margin of 6.8% (Q1 2019: -3.0%).
Regional developments
In North America, revenue increased by 10% to EUR 3,186 million (+7% at constant currency, +3% organic). Operating income grew by 24% to EUR 463 million (+21% at constant currency), resulting in a margin of 14.5 % (Q1 2019: 12.9%). Despite the negative impact from the COVID-19 pandemic, the operating income margin increased mainly due to lower costs for pharmaceuticals and gains from divestitures.
EMEA revenue increased by 4% to EUR 679 million (+4% at constant currency, +3% organic). Operating income decreased by 27% to EUR 101 million (-27% at constant currency), resulting in a margin of 14.9% (Q1 2019: 21.1%). The decrease in operating income margin was mainly due to the prior year reduction of a contingent consideration liability related to Xenios.
In Asia-Pacific, revenue grew by 4% to EUR 443 million (+3% at constant currency, +2% organic). Operating income decreased by 19% to EUR 77 million (-20% at constant currency), resulting in a margin of 17.3 % (Q1 2019: 22.1). The decrease in operating income margin was mainly due to impacts from unfavorable foreign currency transaction effects, lower product sales as well as expansion into in-center dialysis services.
Latin America revenue increased by 4% to EUR 168 million (+24% at constant currency, +17% organic). Operating income decreased by 40% to EUR 7 million (-40% at constant currency), resulting in a margin of 4.1% (Q1 2019: 7.1%). The decrease in operating income margin was mainly due to unfavorable foreign currency impacts.
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the first quarter 2020 on May 6, 2020 at 3:30 p.m. CEDT (UTC +2) / 09:30 a.m. EDT (UTC -4). 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 first quarter 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 4,002 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 348,703 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.
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, 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.
Statement of earning
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Three months ended March 31 |
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Change |
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in € million, except share data, unaudited |
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2020 |
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2019 |
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Change |
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at cc |
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Health Care Service |
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3,595 |
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3,317 |
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8.4 |
% |
6.5 |
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Health Care Products |
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893 |
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816 |
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9.6 |
% |
9.3 |
% | ||
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Revenue |
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4,488 |
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4,133 |
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8.6 |
% |
7.1 |
% | ||
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Costs of revenue |
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3,077 |
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2,867 |
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7.3 |
% |
6.0 |
% | ||
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Gross profit |
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1,411 |
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1,266 |
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11.5 |
% |
9.5 |
% | ||
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Selling, general and administrative |
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854 |
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720 |
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18.6 |
% |
16.9 |
% | ||
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(Gain) loss related to divestitures of Care Coordination activities |
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(24 |
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— |
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n.a. |
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n.a. |
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Research and development |
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46 |
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29 |
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60.6 |
% |
58.3 |
% | ||
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Income from equity method investees |
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(20 |
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(20 |
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1.9 |
% |
1.9 |
% | ||
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Operating income |
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555 |
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537 |
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3.5 |
% |
1.1 |
% | ||
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Operating income adjusted |
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555 |
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557 |
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-0.3 |
% |
-2.5 |
% | ||
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Interest expense, net |
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104 |
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108 |
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-3.4 |
% |
-4.9 |
% | ||
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Income before taxes |
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451 |
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429 |
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5.2 |
% |
2.6 |
% | ||
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Income tax expense |
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100 |
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101 |
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-0.4 |
% |
-2.8 |
% | ||
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Net income |
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351 |
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328 |
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6.9 |
% |
4.3 |
% | ||
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Net income attributable to non controlling interests |
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68 |
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57 |
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18.7 |
% |
15.2 |
% | ||
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Net income(1) |
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283 |
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271 |
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4.4 |
% |
2.0 |
% | ||
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Net income(1) adjusted |
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283 |
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286 |
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-1.0 |
% |
-3.3 |
% | ||
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Weighted average number of shares |
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297,842,343 |
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306,659,364 |
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Basic earnings per share |
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€ |
0.95 |
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€ |
0.88 |
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7.5 |
% |
5.0 |
% |
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Basic earnings per share adjusted |
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€ |
0.95 |
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€ |
0.93 |
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2.0 |
% |
-0.4 |
% |
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In percent of revenue |
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Operation income |
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12.4 |
% |
13.0 |
% |
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Operation income adjusted |
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12.4 |
% |
13.5 |
% |
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(1) Attribute 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.
Reconciliation of non-IFRS financial measures to the most director comparable IFRS financial measures
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Three months ended |
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in € million, unaudited |
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2020 |
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2019 |
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Operating performance on an adjusted basis |
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Revenue |
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4,488 |
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4,133 |
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Operating income |
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555 |
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537 |
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NxStage costs |
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16 |
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Cost optimization costs |
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4 |
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Operating income adjusted |
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555 |
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557 |
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Net income(1) |
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283 |
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271 |
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NxStage costs |
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12 |
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Cost optimization costs |
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3 |
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Net income(1) adjusted |
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283 |
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286 |
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(1) Attributable to shareholders of FMC-AG & Co. KGaA
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE FIRST QUARTER 2020
May 6, 2020
Investor Relations phone:
+49 6172 609 2525
email: ir@fmc-ag.com
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Content: |
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Statement of earnings |
page 2 |
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Segment information |
page 3 |
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Balance sheet |
page 4 |
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Cash flow |
page 5 |
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Revenue development |
page 6 |
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Key metrics |
page 7 |
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Quality data |
page 8 |
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Reconciliation |
page 9 |
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Reconciliation adjusted results |
page 10 |
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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, 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
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Three months ended March 31 |
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Change |
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in € million, except share data, unaudited |
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2020 |
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2019 |
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Change |
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at cc |
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Health Care Services |
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3,595 |
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3,317 |
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8.4 |
% |
6.5 |
% | ||
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Health Care Products |
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893 |
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816 |
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9.6 |
% |
9.3 |
% | ||
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Total revenue |
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4,488 |
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4,133 |
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8.6 |
% |
7.1 |
% | ||
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Costs of revenue |
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3,077 |
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2,867 |
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7.3 |
% |
6.0 |
% | ||
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Gross profit |
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1,411 |
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1,266 |
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11.5 |
% |
9.5 |
% | ||
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Selling, general and administrative |
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854 |
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720 |
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18.6 |
% |
16.9 |
% | ||
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(Gain) loss related to divestitures of Care Coordination activities |
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(24 |
) |
— |
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n.a. |
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n.a. |
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Research and development |
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46 |
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29 |
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60.6 |
% |
58.3 |
% | ||
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Income from equity method investees |
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(20 |
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(20 |
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1.9 |
% |
1.9 |
% | ||
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Operating income |
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555 |
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537 |
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3.5 |
% |
1.1 |
% | ||
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Operating income margin in % |
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12.4 |
% |
13.0 |
% |
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Interest income |
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(9 |
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(28 |
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-68.7 |
% |
-68.3 |
% | ||
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Interest expense |
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113 |
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136 |
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-16.8 |
% |
-18.0 |
% | ||
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Interest expense, net |
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104 |
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108 |
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-3.4 |
% |
-4.9 |
% | ||
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Income before taxes |
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451 |
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429 |
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5.2 |
% |
2.6 |
% | ||
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Income tax expense |
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100 |
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101 |
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-0.4 |
% |
-2.8 |
% | ||
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Net income |
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351 |
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328 |
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6.9 |
% |
4.3 |
% | ||
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Net income attributable to noncontrolling interests |
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68 |
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57 |
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18.7 |
% |
15.2 |
% | ||
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Net income attributable to shareholders of FMC-AG & Co. KGaA |
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283 |
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271 |
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4.4 |
% |
2.0 |
% | ||
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Operating income |
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555 |
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537 |
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3.5 |
% |
1.1 |
% | ||
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Depreciation, amortization and impairment loss |
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401 |
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362 |
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10.6 |
% |
8.6 |
% | ||
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EBITDA |
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956 |
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899 |
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6.3 |
% |
4.1 |
% | ||
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EBITDA margin in % |
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21.3 |
% |
21.8 |
% |
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Weighted average number of shares |
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297,842,343 |
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306,659,364 |
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Basic earnings per share |
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€ |
0.95 |
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€ |
0.88 |
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7.5 |
% |
5.0 |
% |
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Basic earnings per ADS |
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€ |
0.47 |
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€ |
0.44 |
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7.5 |
% |
5.0 |
% |
Segment information
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Three months ended March 31 |
|
Change |
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unaudited |
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2020 |
|
2019 |
|
Change |
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at cc |
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Total |
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|
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Revenue in € million |
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4,488 |
|
4,133 |
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8.6 |
% |
7.1 |
% |
|
Operating income in € million |
|
555 |
|
537 |
|
3.5 |
% |
1.1 |
% |
|
Operating income margin in % |
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12.4 |
% |
13.0 |
% |
|
|
|
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Delivered Operating Income in € million |
|
487 |
|
480 |
|
1.7 |
% |
-0.6 |
% |
|
Days sales outstanding (DSO) |
|
77 |
|
83 |
|
|
|
|
|
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Employees (full-time equivalents) |
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121,403 |
|
118,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
North America |
|
|
|
|
|
|
|
|
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Revenue in € million |
|
3,186 |
|
2,887 |
|
10.4 |
% |
7.2 |
% |
|
Operating income in € million |
|
463 |
|
372 |
|
24.4 |
% |
21.1 |
% |
|
Operating income margin in % |
|
14.5 |
% |
12.9 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
398 |
|
319 |
|
24.9 |
% |
21.6 |
% |
|
Days sales outstanding (DSO) |
|
65 |
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
679 |
|
653 |
|
4.0 |
% |
4.1 |
% |
|
Operating income in € million |
|
101 |
|
138 |
|
-26.7 |
% |
-26.6 |
% |
|
Operating income margin in % |
|
14.9 |
% |
21.1 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
100 |
|
136 |
|
-26.4 |
% |
-26.4 |
% |
|
Days sales outstanding (DSO) |
|
98 |
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
443 |
|
428 |
|
3.6 |
% |
2.6 |
% |
|
Operating income in € million |
|
77 |
|
95 |
|
-18.9 |
% |
-19.5 |
% |
|
Operating income margin in % |
|
17.3 |
% |
22.1 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
75 |
|
93 |
|
-19.0 |
% |
-19.5 |
% |
|
Days sales outstanding (DSO) |
|
103 |
|
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
168 |
|
161 |
|
4.1 |
% |
24.4 |
% |
|
Operating income in € million |
|
7 |
|
11 |
|
-39.8 |
% |
-39.5 |
% |
|
Operating income margin in % |
|
4.1 |
% |
7.1 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
7 |
|
11 |
|
-39.3 |
% |
-39.2 |
% |
|
Days sales outstanding (DSO) |
|
133 |
|
120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
12 |
|
4 |
|
187.0 |
% |
182.0 |
% |
|
Operating income in € million |
|
(93 |
) |
(79 |
) |
16.7 |
% |
16.2 |
% |
|
Delivered Operating Income in € million |
|
(93 |
) |
(79 |
) |
16.8 |
% |
16.3 |
% |
Balance sheet
|
|
|
March 31 |
|
December 31 |
|
|
in € million, except net leverage ratio, unaudited |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
7,856 |
|
7,165 |
|
|
Goodwill and intangible assets |
|
15,727 |
|
15,444 |
|
|
Right of use assets |
|
4,401 |
|
4,325 |
|
|
Other non-current assets |
|
6,088 |
|
6,001 |
|
|
Total assets |
|
34,072 |
|
32,935 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
Current liabilities |
|
8,602 |
|
7,007 |
|
|
Non-current liabilities |
|
12,200 |
|
12,701 |
|
|
Total equity |
|
13,270 |
|
13,227 |
|
|
Total liabilities and equity |
|
34,072 |
|
32,935 |
|
|
|
|
|
|
|
|
|
Equity/assets ratio |
|
39 |
% |
40 |
% |
|
|
|
|
|
|
|
|
Debt and lease liabilities |
|
|
|
|
|
|
Short-term debt |
|
1,507 |
|
1,150 |
|
|
Short-term debt from related parties |
|
521 |
|
22 |
|
|
Current portion of long-term debt |
|
1,965 |
|
1,447 |
|
|
Current portion of long-term lease liabilities |
|
630 |
|
622 |
|
|
Current portion of long-term lease liabilities from related parties |
|
17 |
|
17 |
|
|
Long-term debt, less current portion |
|
5,803 |
|
6,458 |
|
|
Long-term lease liabilities, less current portion |
|
4,030 |
|
3,960 |
|
|
Long-term lease liabilities from related parties, less current portion |
|
104 |
|
106 |
|
|
Total debt and lease liabilities |
|
14,577 |
|
13,782 |
|
|
Minus: Cash and cash equivalents |
|
(1,405 |
) |
(1,008 |
) |
|
Total net debt and lease liabilities |
|
13,172 |
|
12,774 |
|
|
|
|
|
|
|
|
|
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures |
|
|
|
|
|
|
Net income |
|
1,461 |
|
1,439 |
|
|
Income tax expense |
|
401 |
|
402 |
|
|
Interest income |
|
(42 |
) |
(62 |
) |
|
Interest expense |
|
468 |
|
491 |
|
|
Depreciation and amortization |
|
1,590 |
|
1,553 |
|
|
Adjustments (1) |
|
93 |
|
110 |
|
|
Annualized adjusted EBITDA |
|
3,971 |
|
3,933 |
|
|
|
|
|
|
|
|
|
Net leverage ratio |
|
3.3 |
|
3.2 |
|
(1) 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: €5 M; 2019: -€71 M), non-cash charges, primarily related to pension expense (2020: €46 M; 2019: €46 M), impairment loss (2020: €42 M; 2019: €40 M) and NxStage related transaction costs (2019: €95 M).
Cash flow statement
|
|
|
Three months ended |
| ||
|
in € million, unaudited |
|
2020 |
|
2019 |
|
|
Operating activities |
|
|
|
|
|
|
Net income |
|
351 |
|
328 |
|
|
Depreciation / amortization / impairment loss |
|
401 |
|
362 |
|
|
Change in working capital and other non-cash items |
|
(168 |
) |
(614 |
) |
|
Net cash provided by (used in) operating activities |
|
584 |
|
76 |
|
|
In percent of revenue |
|
13.0 |
% |
1.8 |
% |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(282 |
) |
(201 |
) |
|
Proceeds from sale of property, plant and equipment |
|
2 |
|
2 |
|
|
Capital expenditures, net |
|
(280 |
) |
(199 |
) |
|
|
|
|
|
|
|
|
Free cash flow |
|
304 |
|
(123 |
) |
|
In percent of revenue |
|
6.8 |
% |
-3.0 |
% |
|
|
|
|
|
|
|
|
Acquisitions and investments, net of cash acquired, and purchases of intangible assets |
|
(38 |
) |
(1,829 |
) |
|
Proceeds from divestitures |
|
6 |
|
11 |
|
|
Acquisitions and investments, net of divestitures |
|
(32 |
) |
(1,818 |
) |
|
Free cash flow after investing activities |
|
272 |
|
(1,941 |
) |
Revenue development
|
in € million, unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
Organic |
|
Same |
|
|
Three months ended March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
4,488 |
|
4,133 |
|
8.6 |
% |
7.1 |
% |
3.8 |
% |
|
|
|
Health Care Services |
|
3,595 |
|
3,317 |
|
8.4 |
% |
6.5 |
% |
4.1 |
% |
3.4 |
% |
|
Thereof Dialysis Care revenue |
|
3,198 |
|
2,957 |
|
8.1 |
% |
6.4 |
% |
3.6 |
% |
3.4 |
% |
|
Thereof Care Coordination revenue |
|
397 |
|
360 |
|
10.1 |
% |
7.5 |
% |
9.0 |
% |
|
|
|
Health Care Products |
|
893 |
|
816 |
|
9.6 |
% |
9.3 |
% |
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
3,186 |
|
2,887 |
|
10.4 |
% |
7.2 |
% |
3.2 |
% |
|
|
|
Health Care Services |
|
2,908 |
|
2,680 |
|
8.5 |
% |
5.4 |
% |
3.0 |
% |
3.1 |
% |
|
Thereof Dialysis Care revenue |
|
2,571 |
|
2,372 |
|
8.4 |
% |
5.2 |
% |
2.3 |
% |
3.1 |
% |
|
Thereof Care Coordination revenue |
|
337 |
|
308 |
|
9.3 |
% |
6.1 |
% |
9.1 |
% |
|
|
|
Health Care Products |
|
278 |
|
207 |
|
34.4 |
% |
30.5 |
% |
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA |
|
679 |
|
653 |
|
4.0 |
% |
4.1 |
% |
3.0 |
% |
|
|
|
Health Care Services |
|
341 |
|
324 |
|
5.3 |
% |
5.6 |
% |
4.3 |
% |
2.4 |
% |
|
Health Care Products |
|
338 |
|
329 |
|
2.7 |
% |
2.7 |
% |
1.7 |
% |
|
|
|
Thereof Dialysis Products |
|
314 |
|
310 |
|
1.2 |
% |
1.1 |
% |
0.1 |
% |
|
|
|
Thereof Non-Dialysis Products |
|
24 |
|
19 |
|
28.9 |
% |
28.8 |
% |
28.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
443 |
|
428 |
|
3.6 |
% |
2.6 |
% |
1.9 |
% |
|
|
|
Health Care Services |
|
218 |
|
199 |
|
9.7 |
% |
7.6 |
% |
6.5 |
% |
5.9 |
% |
|
Thereof Dialysis Care revenue |
|
158 |
|
147 |
|
7.8 |
% |
4.7 |
% |
5.7 |
% |
5.9 |
% |
|
Thereof Care Coordination revenue |
|
60 |
|
52 |
|
15.0 |
% |
15.8 |
% |
8.5 |
% |
|
|
|
Health Care Products |
|
225 |
|
229 |
|
-1.7 |
% |
-1.7 |
% |
-1.8 |
% |
|
|
|
Thereof Dialysis Products |
|
220 |
|
229 |
|
-3.7 |
% |
-3.7 |
% |
-3.8 |
% |
|
|
|
Thereof Non-Dialysis Products |
|
5 |
|
— |
|
n.a. |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
168 |
|
161 |
|
4.1 |
% |
24.4 |
% |
17.1 |
% |
|
|
|
Health Care Services |
|
121 |
|
114 |
|
5.0 |
% |
28.5 |
% |
19.7 |
% |
4.9 |
% |
|
Health Care Products |
|
47 |
|
47 |
|
1.8 |
% |
14.2 |
% |
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
12 |
|
4 |
|
187.0 |
% |
182.0 |
% |
|
|
|
|
|
Health Care Services |
|
7 |
|
— |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
Health Care Products |
|
5 |
|
4 |
|
16.9 |
% |
16.9 |
% |
|
|
|
|
(1) same market treatment growth = organic growth less price effects
Key metrics North America segment
|
|
|
Three months ended March 31 |
|
Change |
| ||||
|
unaudited |
|
2020 |
|
2019 |
|
Change |
|
at cc |
|
|
Dialysis |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
2,849 |
|
2,579 |
|
10.5 |
% |
7.3 |
% |
|
Operating income in € million |
|
416 |
|
332 |
|
25.2 |
% |
21.8 |
% |
|
Operating income margin in % |
|
14.6 |
% |
12.9 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
359 |
|
285 |
|
26.1 |
% |
22.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
|
|
|
|
Revenue in € million |
|
337 |
|
308 |
|
9.3 |
% |
6.1 |
% |
|
Operating income in € million |
|
47 |
|
40 |
|
18.1 |
% |
14.8 |
% |
|
Operating income margin in % |
|
14.0 |
% |
13.0 |
% |
|
|
|
|
|
Delivered Operating Income in € million |
|
39 |
|
34 |
|
14.7 |
% |
11.5 |
% |
Key metrics Dialysis Care Services
|
|
|
Three months ended March 31, 2020 |
| ||||||||||||
|
|
|
|
|
Growth |
|
|
|
|
|
Growth |
|
|
|
Growth |
|
|
unaudited |
|
Clinics |
|
in % |
|
De novos |
|
Patients |
|
in % |
|
Treatments |
|
in % |
|
|
Total |
|
4,002 |
|
1 |
% |
27 |
|
348,703 |
|
4 |
% |
13,179,096 |
|
5 |
% |
|
North America |
|
2,597 |
|
1 |
% |
15 |
|
213,221 |
|
4 |
% |
8,096,332 |
|
5 |
% |
|
EMEA |
|
786 |
|
1 |
% |
6 |
|
66,843 |
|
2 |
% |
2,511,370 |
|
1 |
% |
|
Asia-Pacific |
|
376 |
|
-6 |
% |
5 |
|
31,337 |
|
-1 |
% |
1,145,897 |
|
4 |
% |
|
Latin America |
|
243 |
|
5 |
% |
1 |
|
37,302 |
|
12 |
% |
1,425,497 |
|
11 |
% |
Key metrics Care Coordination
|
|
|
Three months ended March 31 |
| ||||||
|
unaudited |
|
2020 |
|
2019 |
|
Change |
|
Change |
|
|
North America |
|
|
|
|
|
|
|
|
|
|
Member months under medical cost management(1) |
|
171,525 |
|
170,903 |
|
0.4 |
% |
|
|
|
Medical cost under management (in € million)(1) |
|
1,116 |
|
1,071 |
|
4.2 |
% |
1.2 |
% |
|
Care Coordination patient encounters |
|
207,241 |
|
272,353 |
|
-23.9 |
% |
|
|
(1) Data presented for the ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics.
Quality data(1)
|
|
|
North America |
|
EMEA |
|
Latin America |
|
Asia-Pacific |
| ||||||||
|
in % of patients |
|
Q1 2020 |
|
Q1 2019 |
|
Q1 2020 |
|
Q1 2019 |
|
Q1 2020 |
|
Q1 2019 |
|
Q1 2020 |
|
Q1 2019 |
|
|
Kt/V > 1.2 |
|
97 |
|
97 |
|
94 |
|
95 |
|
96 |
|
97 |
|
98 |
|
99 |
|
|
Hemoglobin = 10-12 g/dl |
|
70 |
|
70 |
|
82 |
|
82 |
|
50 |
|
49 |
|
55 |
|
56 |
|
|
Calcium = 8.4-10.2 mg/dl |
|
80 |
|
85 |
|
79 |
|
79 |
|
75 |
|
77 |
|
74 |
|
74 |
|
|
Albumin > 3.5 g/dl(1) |
|
80 |
|
81 |
|
89 |
|
89 |
|
90 |
|
91 |
|
88 |
|
90 |
|
|
Phosphate < 5.5 mg/dl |
|
59 |
|
60 |
|
80 |
|
80 |
|
76 |
|
76 |
|
63 |
|
66 |
|
|
Patients without catheter (after 90 days) |
|
81 |
|
83 |
|
78 |
|
79 |
|
79 |
|
80 |
|
83 |
|
85 |
|
|
in days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days in hospital per patient year |
|
10.2 |
|
11.1 |
|
7.5 |
|
7.8 |
|
4.2 |
|
4.3 |
|
2.3 |
|
3.0 |
|
(1) Definitions cf. Annual Report 2018, Section “Non-Financial Group Report”
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
|
Three months ended |
| ||
|
|
|
March 31 |
| ||
|
in € million, unaudited |
|
2020 |
|
2019 |
|
|
Delivered Operating Income reconciliation |
|
|
|
|
|
|
Total |
|
|
|
|
|
|
Operating income |
|
555 |
|
537 |
|
|
less noncontrolling interests |
|
(68 |
) |
(57 |
) |
|
Delivered Operating Income |
|
487 |
|
480 |
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
Operating income |
|
463 |
|
372 |
|
|
less noncontrolling interests |
|
(65 |
) |
(53 |
) |
|
Delivered Operating Income |
|
398 |
|
319 |
|
|
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
|
Operating income |
|
416 |
|
332 |
|
|
less noncontrolling interests |
|
(57 |
) |
(47 |
) |
|
Delivered Operating Income |
|
359 |
|
285 |
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
Operating income |
|
47 |
|
40 |
|
|
less noncontrolling interests |
|
(8 |
) |
(6 |
) |
|
Delivered Operating Income |
|
39 |
|
34 |
|
|
|
|
|
|
|
|
|
EMEA |
|
|
|
|
|
|
Operating income |
|
101 |
|
138 |
|
|
less noncontrolling interests |
|
(1 |
) |
(2 |
) |
|
Delivered Operating Income |
|
100 |
|
136 |
|
|
|
|
|
|
|
|
|
Asia-Pacific |
|
|
|
|
|
|
Operating income |
|
77 |
|
95 |
|
|
less noncontrolling interests |
|
(2 |
) |
(2 |
) |
|
Delivered Operating Income |
|
75 |
|
93 |
|
|
|
|
|
|
|
|
|
Dialysis |
|
|
|
|
|
|
Operating income |
|
75 |
|
89 |
|
|
less noncontrolling interests |
|
(2 |
) |
(2 |
) |
|
Delivered Operating Income |
|
73 |
|
87 |
|
|
|
|
|
|
|
|
|
Care Coordination |
|
|
|
|
|
|
Operating income |
|
2 |
|
6 |
|
|
less noncontrolling interests |
|
0 |
|
0 |
|
|
Delivered Operating Income |
|
2 |
|
6 |
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
Operating income |
|
7 |
|
11 |
|
|
less noncontrolling interests |
|
0 |
|
0 |
|
|
Delivered Operating Income |
|
7 |
|
11 |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
Operating income |
|
(93 |
) |
(79 |
) |
|
less noncontrolling interests |
|
0 |
|
0 |
|
|
Delivered Operating Income |
|
(93 |
) |
(79 |
) |
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
| |||||
|
|
|
|
|
|
|
|
|
Cost |
|
Results |
|
Change |
|
(adjusted |
| |||||
|
|
|
Results |
|
Results |
|
NxStage |
|
optimization |
|
2019 |
|
(adjusted |
|
results) |
| |||||
|
in € million, except share data, unaudited |
|
2020 |
|
2019 |
|
costs |
|
costs |
|
adjusted |
|
results) |
|
at cc |
| |||||
|
Three months ended March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total revenue |
|
4,488 |
|
4,133 |
|
|
|
|
|
4,133 |
|
8.6 |
% |
7.1 |
% | |||||
|
EBITDA |
|
956 |
|
899 |
|
16 |
|
4 |
|
919 |
|
4.0 |
% |
1.9 |
% | |||||
|
Total operating income |
|
555 |
|
537 |
|
16 |
|
4 |
|
557 |
|
-0.3 |
% |
-2.5 |
% | |||||
|
North America |
|
463 |
|
372 |
|
16 |
|
4 |
|
392 |
|
18.1 |
% |
15.0 |
% | |||||
|
Dialysis |
|
416 |
|
332 |
|
16 |
|
4 |
|
352 |
|
18.2 |
% |
15.0 |
% | |||||
|
Care Coordination |
|
47 |
|
40 |
|
|
|
|
|
40 |
|
18.1 |
% |
14.8 |
% | |||||
|
EMEA |
|
101 |
|
138 |
|
|
|
|
|
138 |
|
-26.7 |
% |
-26.6 |
% | |||||
|
Asia-Pacific |
|
77 |
|
95 |
|
|
|
|
|
95 |
|
-18.9 |
% |
-19.5 |
% | |||||
|
Dialysis |
|
75 |
|
89 |
|
|
|
|
|
89 |
|
-15.9 |
% |
-16.8 |
% | |||||
|
Care Coordination |
|
2 |
|
6 |
|
|
|
|
|
6 |
|
-64.0 |
% |
-59.8 |
% | |||||
|
Latin America |
|
7 |
|
11 |
|
|
|
|
|
11 |
|
-39.8 |
% |
-39.5 |
% | |||||
|
Corporate |
|
(93 |
) |
(79 |
) |
|
|
|
|
(79 |
) |
16.9 |
% |
16.4 |
% | |||||
|
Interest expense, net |
|
104 |
|
108 |
|
|
|
|
|
108 |
|
-3.4 |
% |
-4.9 |
% | |||||
|
Income tax expense |
|
100 |
|
101 |
|
4 |
|
1 |
|
106 |
|
-5.3 |
% |
-7.6 |
% | |||||
|
Net income attributable to noncontrolling interests |
|
68 |
|
57 |
|
|
|
|
|
57 |
|
18.7 |
% |
15.2 |
% | |||||
|
Net income(1) |
|
283 |
|
271 |
|
12 |
|
3 |
|
286 |
|
-1.0 |
% |
-3.3 |
% | |||||
|
Basic earnings per share |
|
€ |
0.95 |
|
€ |
0.88 |
|
€ |
0.04 |
|
€ |
0.01 |
|
€ |
0.93 |
|
2.0 |
% |
-0.4 |
% |
(1) Attributable to shareholders of FMC-AG & Co. KGaA
Outlook 2020
|
|
|
|
|
Outlook 2020 |
|
|
|
Results 2019 |
|
(at Constant Currency) |
|
Revenue(1) |
|
€17,477 M |
|
mid to high single digit growth rate |
|
Operating income(1) |
|
€2,356 M |
|
mid to high single digit growth rate |
|
Delivered Operating Income(1) |
|
€2,117 M |
|
mid to high single digit growth rate |
|
Net income(1),(2) |
|
€1,236 M |
|
mid to high single digit growth rate |
|
Basic earnings per share growth(1),(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 investments(3) |
|
€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(4) |
|
€1.20 |
|
assessed based on expected development of net income and shares outstanding |
|
Employees(5) |
|
120,659 |
|
> 124,000 |
|
Research and development expenses |
|
€168 M |
|
€210 - €230 M |
(1) Outlook 2020 excl. the impact from the COVID-19 pandemic and 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) Results 2019: proposal to be approved by the 2020 Annual General Meeting.
(5) Full-time equivalents.