Fresenius Medical Care AG 6-K, filed Feb 1, 2021
Fresenius Medical Care AG (FMS)
About this 6-K
Fresenius Medical Care AG filed this 6-K on February 1, 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 February 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): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes ¨ | No x |
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82
EXHIBITS
The following exhibits are being furnished with this Report:
| Exhibit 99.1 | Press Release issued on February 1, 2021. | |
| Exhibit 99.2 | Ad-hoc announcement according to Art.17 (1) Market Abuse Regulation of the Regulation (EU) No 596/2014 issued on February 1, 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: February 1, 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 and investors | |
| Dr. Dominik Heger | |
| T +49 6172 609-2601 | |
| dominik.heger@fmc-ag.com | |
| www.freseniusmedicalcare.com |
February 1, 2021
Fresenius Medical Care anticipates significant negative impact on 2021 net income from accelerated COVID-19 related excess mortality of dialysis patients; confirms mid-term targets
| - | Based on preliminary numbers financial targets for 2020 achieved with net income slightly above the top end of the target range |
| - | Reported earnings in Q4 impacted by macro-economic driven impairment in the Latin America segment |
| - | Accelerated COVID-19 related excess mortality of dialysis patients and continued related higher direct costs negatively affects 2021 business development |
| - | Relevant further developments, including effects of adoption and speed of the roll out of vaccinations and availability of government support, are closely monitored and analyzed |
| - | Cost-base adjustments and restructuring initiatives under evaluation |
| - | Mid-term targets confirmed as defined in October 2020 |
Throughout 2020, Fresenius Medical Care, the world’s leading provider of products and services for individuals with renal diseases, reported COVID-19 affecting patients with advanced kidney disease and, in particular, the severity of illness resulting in an increased mortality. The excess mortality trend significantly accelerated in the U.S. and in EMEA in particular in November and December 2020 and accumulated to approximately 10,000 patients in 2020 over the pre-pandemic baseline.
In order to protect patients during the COVID-19 pandemic and maintain safe operations in the Company’s more than 4,000 dialysis centers and 45 manufacturing sites, comprehensive measures had been taken. These measures included the provision of personal protective equipment for employees and patients as well as higher compensation for employees working in the isolation clinics. These measures have resulted in significantly increased costs in the Dialysis Services business, which in 2020 was largely compensated by governmental support, in particular in the U.S., accelerated efficiency measures and a strong products business development.
Page 1/3
Despite those negative impacts of the COVID-19 pandemic, Fresenius Medical Care has achieved - based on the preliminary and unaudited financials - its revenue target and slightly exceeded its net income1 targets for 20202.
The previously flagged impairment of goodwill and tradenames in the Latin America segment has materialized with an impact of approximately EUR 195 million as a consequence of the macro-economic downturn and increasing risk adjustment rates for certain countries in Latin America and will be treated as a special item.
The accelerating effects of excess mortality due to the COVID-19 pandemic are continuing into 2021 and are expected to have a significant adverse annualization effect on treatment volumes. This also negatively impacts the operating leverage on clinic utilization and downstream effects on complementary assets.
Against this backdrop, Fresenius Medical Care anticipates, based on the currently available information and status of analysis, revenue growth of up to mid-single digits and assumes net income1 before potential restructuring measures to decline by up to 25 percent.3
This current estimate is based on the following high-level assumptions:
| § | Excess mortality to continue to accumulate for the first half of 2021 depending on the adoption and speed of the roll out of vaccinations to our worldwide patient population |
| § | COVID-19-related additional costs, such as for personal protective equipment or increased personnel costs in the Dialysis Services business, to remain on high level |
| § | Besides the extended suspension of the U.S. Medicare sequestration (until end of March 2021), no further public relief funding assumed for dialysis providers |
| 1 | Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA. |
| 2 | 2020 targets are inclusive of anticipated COVID-19 effects, in constant currency and exclude 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. Special item in 2020: impairment in Latin America segment. |
| 3 | These early indications for 2021 are inclusive of anticipated COVID-19 effects, in constant currency and exclude special items such as restructuring costs. They are based on the preliminary and unaudited operational 2020 results excluding special items. |
Page 2/3
Fresenius Medical Care continues to monitor closely the development of mortality, including the adoption and speed of roll out of vaccinations to its patient population, as well as potential availability of government relief. Additionally, potential cost efficiency and restructuring measures to further adjust the cost base are under close evaluation.
The final results for the financial year 2020 and the targets for 2021 will be published, as scheduled, on February 23, 2021.
Fresenius Medical Care’s mid-term targets until 2025 as defined in October 2020, remain unchanged.
Conference call
Fresenius Medical Care will host a public presentation on the early indication for 2021 on February 3, 2021 at 2:00 p.m. CET / 8.00 a.m. ET. Please find the registration link here. The quiet period will end with the publication of the results of the fourth quarter and full year 2020 on February 23, 2021.
Fresenius Medical Care is the world's leading provider of products and services for individuals with renal diseases of which around 3.5 million patients worldwide regularly undergo dialysis treatment. Through its network of 4,073 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 349,167 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding 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.
Page 3/3
Exhibit 99.2
Fresenius Medical Care AG & Co. KGaA anticipates significant negative impact on 2021 net income due to accelerated impact of Covid-19 related excess mortality on its patient population
Based on preliminary numbers Fresenius Medical Care confirms achievement of its 2020 financial targets, with net income (attributable to shareholders of Fresenius Medical Care AG & Co. KGaA) slightly above the top end of the target range. Earnings development was impacted negatively in Q4 by an impairment in the Latin America segment of approximately EUR 195 million, which is treated as a special item.
Fresenius Medical Care hereby informs the market early on its indicative preliminary assumptions for the development of the net income in fiscal year 2021.
The significant acceleration in November and December 2020 of Covid-19 related patient excess mortality is expected to continue into 2021. In addition, the Company anticipates the associated cost for safety measures for patients and employees to remain at a high level. Fresenius Medical Care continues to monitor the further development of mortality, the adoption and speed of roll out of vaccinations as well as government relief measures and to closely evaluate opportunities to adjust its cost base.
Against this backdrop, Fresenius Medical Care anticipates, based on early indications and before special items, such as potential restructuring measures, and on a constant currency basis, revenue growth of up to mid-single digits and assumes net income (attributable to shareholders of Fresenius Medical Care AG & Co. KGaA) to decline by up to 25 percent.
The mid-term targets through 2025, as defined in October 2020, remain unchanged.
Fresenius Medical Care AG & Co. KGaA erwartet deutlich negative Auswirkungen auf das Konzernergebnis 2021 aufgrund der Covid-19-bedingten erhöhten Übersterblichkeit auf seine Patientengruppe
Auf der Basis vorläufiger Zahlen bestätigt Fresenius Medical Care, dass die Finanzziele für 2020 erreicht wurden. Das Konzernergebnis, das auf die Anteilseigner der Fresenius Medical Care AG & Co. KGaA entfällt, liegt knapp über dem oberen Ende der Zielbandbreite. Die Ergebnisentwicklung im vierten Quartal wurde negativ beeinflusst durch eine Wertberichtigung in Höhe von rund EUR 195 Mio. im Segment Lateinamerika, die als Sondereffekt behandelt wird.
Fresenius Medical Care informiert den Markt hiermit frühzeitig über seine indikativen vorläufigen Annahmen für die Entwicklung des Konzernergebnisses im Geschäftsjahr 2021.
Die deutliche Erhöhung der Covid-19-bedingten Patientenübersterblichkeit im November und Dezember 2020 wird sich voraussichtlich im Jahr 2021 fortsetzen. Darüber hinaus geht das Unternehmen davon aus, dass die damit verbundenen Kosten für Sicherheitsmaßnahmen für Patienten und Mitarbeiter hoch bleiben werden. Fresenius Medical Care wird die weitere Entwicklung der Sterblichkeit, die Umsetzung und Schnelligkeit bei der Einführung von Impfungen sowie staatliche Entlastungsmaßnahmen laufend beobachten und Möglichkeiten zur Anpassung der Kostenbasis sorgfältig prüfen.
Vor diesem Hintergrund erwartet Fresenius Medical Care auf der Grundlage erster Indikationen und vor Sondereffekten (wie z. B. möglichen Restrukturierungsmaßnahmen) und auf der Basis konstanter Wechselkurse ein Umsatzwachstum im mittleren einstelligen Bereich und geht von einem Rückgang des Konzernergebnisses, das auf die Anteilseigner der Fresenius Medical Care AG & Co. KGaA entfällt, um bis zu 25 Prozent aus.
Der im Oktober 2020 definierte Mittelfristausblick bis 2025 bleibt unverändert.