6-K
Fresenius Medical Care AG (FMS)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of October 2022
Commission file number: 001-32749
FRESENIUS MEDICALCARE AG & Co. KGaA
(Translation of registrant's name into English)
Else-Kröner Strasse 1
61346 Bad Homburg
Germany
(Address of 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 October 30, 2022, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued an ad-hoc announcement according to article 17 (1) of the European Market Abuse Regulation as well as a Press Release announcing its third quarter results for the period ending September 30, 2022. A copy of the ad-hoc notification is furnished as Exhibit 99.1, the Press Release is furnished as Exhibit 99.2 and the corresponding financial figures as Exhibit 99.3.
The attached Press Release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our third quarter 2022 consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measures, including (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) free cash flow, (c) net leverage ratio (ratio of net debt to adjusted EBITDA) and (d) results presented in constant currency. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-IFRS financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures EBITDA, Adjusted EBITDA, Net Leverage Ratio and Free Cash Flow to the most comparable IFRS financial measures are included in the attached Financial Statements. As the reconciliation of amounts stated in Constant Currency is inherent in the disclosure included in the Press Release, we believe that a separate reconciliation would not provide any additional benefit.
The Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
EXHIBITS
The following exhibits are being furnished with this Report:
The disclaimer included in Exhibit 99.2 is an integral part of this report, including the exhibits furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
DATE: October 30, 2022
| Fresenius Medical Care<br> AG & Co. KGaA, a<br> partnership limited by shares, represented by: | |
|---|---|
| fresenius<br> medical care management ag, its General Partner | |
| By: | /s/<br> Helen Giza |
| Name: | Helen Giza |
| Title: | Deputy Chief Executive Officer, Chief Financial Officer and member of the Management Board of the General<br>Partner |
| By: | /s/ Rice Powell |
| Name: | Rice Powell |
| Title: | Member of the Management Board of the General Partner |
Exhibit 99.1
| Ad-hoc announcement according to Art. 17 (1) MAR | Media contact<br><br><br><br>Matthias Link<br><br><br><br>T +49 6172 609-2872<br><br><br><br>[email protected]<br><br><br><br><br><br><br><br>Contact for analysts and investors<br><br><br><br>Dr. Dominik Heger<br><br><br><br>T +49 6172 609-2601<br><br><br><br>[email protected]<br><br><br><br><br><br><br><br>www.freseniusmedicalcare.com |
|---|
October 30^th^, 2022
Fresenius Medical Care AG & Co. KGaA extends net incometarget range for financial year 2022
Since Fresenius Medical Care continues to operate in a challenging environment, the impacts of the Company’s focused efforts to improve North American Health Care Services operations are delayed against previous assumptions. Therefore, Fresenius Medical Care now assumes lower contributions in the financial year 2022.
Consequently, Fresenius Medical Care now expects net income (attributable to shareholders of Fresenius Medical Care AG & Co. KGaA) for the financial year 2022 to decline in the high teens to mid-twenties percentage range. The Company continues to anticipate revenue to grow at a low-single digit percentage range in the financial year 2022. These targets are in constant currency and exclude special items.
Contact:
Dr. Dominik Heger
EVP | Head of Investor Relations, Strategic Development & Communications
P. +49 6172 609 2601
Exhibit 99.2
| Press Release | Media contact |
|---|---|
| Matthias Link | |
| T +49 6172 609-2872 | |
| [email protected] | |
| Contact for analysts and investors | |
| Dr. Dominik Heger | |
| T +49 6172 609-2601 | |
| [email protected] | |
| www.freseniusmedicalcare.com |
October 30, 2022
Fresenius Medical Care revises financial outlook for full year 2022due to delayed effects from improvements in North American Services business in challenging environment
| - | Business development continues to be strongly impacted by highly uncertain macroeconomic environment driving wage and general cost<br>inflation in all reporting segments |
|---|---|
| - | Impacts of improvements in North American Health Care Services operations delayed |
| --- | --- |
| - | COVID-19-related excess mortality in line with expectations |
| --- | --- |
| - | Important step in value-based care achieved with closing of InterWell Health merger |
| --- | --- |
| - | Management Team in the process of detailing broader turnaround plan |
| --- | --- |
| - | Revised FY 2022 targets: |
| --- | --- |
| o | revenue growth still expected at a low-single digit percentage rate |
| --- | --- |
| o | income now expected to decline in the high teens to mid-twenties percentage range |
| --- | --- |
Carla Kriwet, Chief Executive Officer of Fresenius Medical Care since 1^st^ October, said: “I am excited having started to work for this great company. From the many visitsand exchanges in my first month as CEO, I can witness the tremendous dedication of our employees to our patients around the world,under difficult macroeconomic circumstances. While the FME25 new operating model and savings provide an important foundation, there isalso a clear urgency to turnaround our operational performance with bold interventions. We are defining a broader turnaround plan, whichwill also include a culture of performance and accountability.”
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“FreseniusMedical Care continues to operate in a challenging and highly volatile macroeconomic and operational environment. As expected, inflationarydevelopments persisted and weighed on our earnings. Open positions in our dialysis clinics were reduced but remained at an elevated level,impacting both costs and growth in Health Care Services. While it is disappointing that the execution against our North America recoveryplan is delayed, we are confident that the intensified efforts will improve the performance. Against this backdrop, as a matter of caution,we revise our guidance for 2022 net income development.”, said Helen Giza, Chief Financial Officer of Fresenius Medical Care.
Key figures (IFRS, unaudited)
| Q3 2021 | Growth | Growth | 9M 2022 | 9M 2021 | Growth | Growth | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| m | yoy | yoy, cc | m | m | yoy | yoy, cc | |||||||||
| Revenue | +15 | % | +3 | % | +11 | % | +2 | % | |||||||
| Operating income | -7 | % | -17 | % | -17 | % | -24 | % | |||||||
| excl.<br> special items1 | -8 | % | -18 | % | -7 | % | -14 | % | |||||||
| Net<br> income2 | -16 | % | -24 | % | -28 | % | -34 | % | |||||||
| excl.<br> special items1 | -17 | % | -25 | % | -13 | % | -18 | % | |||||||
| Basic EPS () | -16 | % | -24 | % | -28 | % | -34 | % | |||||||
| excl.<br> special items1 | -17 | % | -25 | % | -13 | % | -19 | % |
All values are in Euros.
yoy = year-on-year, cc = at constant currency, EPS = earnings pershare
| ^1^ | Special items include costs related to the FME25 program, the impact of the war in Ukraine, the impact of hyperinflation in Turkiye, the<br>remeasurement effect on the fair value of the investment in Humacyte, Inc. (Humacyte investment remeasurement), the net gain related to<br>InterWell Health and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the<br>time of giving guidance. These items are excluded to ensure comparability of the figures presented with the Company’s financial<br>targets which have been defined excluding special items. For further details please see the reconciliation at the end of the Press Release. |
|---|---|
| ^2^ | Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA |
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Key priorities
Given the operational environment and the likely headwinds for 2023, the Management Team is defining a broad turnaround plan. It will address performance issues in North American Health Care Services, the structural cost base of Health Care Products and an extended cost saving program.
Based on the Company’s new operating model, that will come to life in January 2023, Fresenius Medical Care will not only simplify its organization and significantly reduce overhead costs but rigorously optimize its portfolio in both – the future Care Delivery (Health Care Services) and Care Enablement (Health Care Products) segments. The subsequent capital allocation will focus on profitable growth businesses and improving operational leverage.
InterWell Health merger closed
With the closing of the three-way merger of Fresenius Health Partners, InterWell Health and Cricket Health, a premier value-based kidney care provider has been created in the U.S. This is an important step in the execution of Fresenius Medical Care’s strategy. The new company operates under the InterWell Health brand and will be fully consolidated by Fresenius Medical Care as the majority owner. The closing of the merger resulted in a net gain of EUR 56 million (on operating income level) in the third quarter, which is treated as a special item.
Improvements in North AmericanHealth Care Services delayed
Fresenius Medical Care continues to face an unprecedented labor market situation in the U.S., resulting in staff shortages, high turnover rates and meaningfully higher costs. This has continued to impact growth in U.S. Dialysis Services as well as in downstream assets and consequently affected operational leverage in both. Earnings effects were partially mitigated by income attributable to a consent agreement on certain pharmaceuticals in the third quarter.
The impacts of Fresenius Medical Care’s focused efforts to improve North American Health Care Services operations are delayed against the Company’s previous assumptions. Fresenius Medical Care now expects the related effects to materialize in 2023.
The challenging macroeconomic inflationary environment persists, resulting in higher logistics costs as well as raw material and energy prices. Due to this situation not easing, it is assumed to further significantly impact the earnings development, in particular in Health Care Products, for the remainder of the year.
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COVID-19-related excess mortalityin line with expectations
In the third quarter, COVID-19-related excess mortality among Fresenius Medical Care’s patients amounted to approximately 1,100 (Q1 2022: ~2,400; Q2 2022: ~800^3^), in line with the Company’s expectations for the full year. Fresenius Medical Care carefully observes and assesses the development of infection rates in fall. Excess mortality accumulated to approximately 24,600 since the start of the pandemic.
The overall estimated adverse effect of accumulated excess mortality on organic growth in the Health Care Services business amounted to around 230 basis points in the third quarter.
Earnings impacted by higherlabor costs and inflationary cost increases
Revenue increased by 15% to EUR 5,096 million (+3% at constant currency, +2% organic) in the third quarter.
Health Care Services revenue grew by 16% to EUR 4,082 million (+2% at constant currency, +2% organic). At constant currency, this was mainly driven by organic growth in EMEA, Asia-Pacific and Latin America, which was partially offset by negative organic growth in North America due to COVID-19 and capacity constraints in certain clinics.
Health Care Products revenue increased by 11% to EUR 1,014 million (+4% at constant currency, +4% organic). Constant currency growth was mainly driven by higher sales of in-center disposables and renal pharmaceuticals, partially offset by lower sales of machines for chronic treatment.
In the first nine months, revenue grew by 11% to EUR 14,401 million (+2% at constant currency, +1% organic). Health Care Services revenue increased by 12% to EUR 11,471 million (+2% at constant currency, +1% organic); Health Care Products revenue grew by 8% to EUR 2,930 million (+3% at constant currency, +3% organic).
Operating income decreased by 7% to EUR 472 million (-17% at constant currency) in the third quarter, resulting in a margin of 9.3% (Q3 2021: 11.4%). Operating income excluding special items^1^ decreased by 8% to EUR 470 million (-18% at constant currency), resulting in a margin of 9.2% (Q3 2021: 11.6%). At constant currency, the decline was mainly due to higher labor costs as well as inflationary and supply chain cost increases. This was partially offset by EUR 80 million (Q3 2021: EUR 0.3 million) of Provider Relief Funding from the U.S. government to compensate for certain COVID-19-related costs.
| ^3^ | Historical excess mortality updated for late entries |
|---|
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In the first nine months, operating income declined by 17% to EUR 1,160 million (-24% at constant currency), resulting in a margin of 8.1% (9M 2021: 10.8%). At constant currency, the development was supported by EUR 240 million (9M 2021: EUR 14 million) of Provider Relief Funding from the U.S. government to compensate for certain COVID-19-related costs. Excluding special items^1^, operating income decreased by 7% to EUR 1,322 million (-14% at constant currency), resulting in a margin of 9.2% (9M 2021: 11.0%).
Netincome^2^ decreased by 16% to EUR 230 million (-24% at constant currency) in the third quarter. Excluding special items, net income^2^ declined by 17% to EUR 231 million (-25% at constant currency). Besides the above-mentioned effects on operating income, the constant currency decline was mainly due to an increase in the proportionate share of non-tax-deductible expenses compared to taxable income. Basic earnings per share (EPS) decreased by 16% to EUR 0.78 (-24% at constant currency). Excluding special items^1^, EPS declined by 17% to EUR 0.79 (-25% at constant currency).
In the first nine months, net income^2^ decreased by 28% to EUR 535 million (-34% at constant currency). Excluding special items^1^, net income^2^ declined by 13% to EUR 660 million (-18% at constant currency). EPS decreased by 28% to EUR 1.82 (-34% at constant currency). Excluding special items^1^, EPS declined by 13% to EUR 2.25 (-19% at constant currency).
Regional developments
In North America, revenue increased by 15% to EUR 3,556 million (-1% at constant currency, -2% organic) in the third quarter. At constant currency, this was mainly due to a decline in organic growth in the Health Care Services business, which was due to COVID-19 and capacity constraints in certain clinics, as well as in the Health Care Products business due to lower sales of machines for chronic treatment including the effects the machine shipping hold, products for acute care treatments and in-center disposables. These effects were only partially offset by contributions from acquisitions. In the first nine months, revenue grew by 12% to EUR 10,021 million (stable at constant currency, -1% organic).
Operating income in North America increased by 5% to EUR 469 million (-8% at constant currency) in the third quarter, resulting in a margin of 13.2% (Q3 2021: 14.5%). At constant currency, the decline in operating income was mainly due to higher labor costs, the impact of COVID-19, as well as inflationary and supply chain cost increases. This was partially offset by provider relief funding from the U.S. government to compensate for certain COVID-19-related costs, the net gain related to InterWell Health and income attributable to a consent agreement on certain pharmaceuticals. In the first nine months, operating income declined by 10% to EUR 1,113 million (-20% at constant currency), resulting in a margin of 11.1% (9M 2021: 13.9%).
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Revenue in the EMEA region increased by 7% to EUR 720 million in the third quarter (+8% at constant currency, +8% organic). At constant currency, this was mainly due to organic growth in Health Care Services and Health Care Products, both including the effects of hyperinflation in Turkiye. Organic growth in Health Care Products was also driven by higher sales of in-center disposables and renal pharmaceuticals, partially offset by lower sales of acute cardiopulmonary products. In the first nine months, revenue grew by 4% to EUR 2,121 million (+6% at constant currency, +6% organic).
Operating income in EMEA decreased by 40% to EUR 48 million (-41% at constant currency) in the third quarter, resulting in a margin of 6.6% (Q3 2021: 11.7%). At constant currency, the decline in operating income was mainly due to inflationary operational cost increases, costs associated with the FME25 program, and lower income from certain equity method investees. In the first nine months, operating income declined by 27% to EUR 169 million (-26% at constant currency), resulting in a margin of 8.0% (9M 2021: 11.4%).
In Asia-Pacific, revenue increased by 13% to EUR 565 million (+7% at constant currency, +7% organic) in the third quarter. At constant currency, this was mainly driven by organic growth in the Health Care Products business, which was primarily due to higher sales of in-center disposables, products for acute care treatments and machines for chronic treatment. In the first nine months, revenue increased by 9% to EUR 1,588 million (+4% at constant currency, +4% organic).
Operating income decreased by 1% to EUR 85 million (-2% at constant currency) in the third quarter, resulting in a margin of 15.1% (Q3 2021: 17.2%). At constant currency, the decline in operating income was mainly due to inflationary cost increases and higher bad debt expenses, almost offset by favorable foreign currency transaction effects and growth in certain business lines. In the first nine months, operating income was stable and amounted to EUR 255 million (-1% at constant currency), resulting in a margin of 16.1% (9M 2021: 17.5%).
Latin America revenue increased by 36% to EUR 243 million (+36% at constant currency, +37% organic) in the third quarter, mainly driven by organic growth in the Health Care Services business, as well as higher sales of machines for chronic treatment and in-center disposables. In the first nine months, revenue grew by 25% to EUR 633 million (+23% at constant currency, +24% organic).
Operating income increased to EUR 11 million in the third quarter, resulting in a margin of 4.5% (Q3 2021: 2.4%). At constant currency, the increase in operating income was mainly due to income from investments in debt securities, favorable foreign currency transaction effects and lower bad debt expense, partially offset by inflationary cost increases. In the first nine months, operating income grew by 17% to EUR 16 million (-6% at constant currency), resulting in a margin of 2.5% (9M 2021: 2.7%).
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Cash flow development
In the third quarter, Fresenius Medical Care generated EUR 658 million of operating cash flow (Q3 2021: EUR 692 million), resulting in a margin of 12.9% (Q3 2021: 15.6%). The decrease was mainly due to lower net income. In the first nine months, operating cash flow amounted to EUR 1,568 million (9M 2021: EUR 1,820 million), resulting in a margin of 10.9% (9M 2021: 14.0%).
Free cash flow^4^ amounted to EUR 501 million (Q3 2021: EUR 511 million) in the third quarter, resulting in a margin of 9.8% (Q3 2021: 11.5%). In the first nine months, free cash flow amounted to EUR 1,082 million (9M 2021: EUR 1,259 million), resulting in a margin of 7.5% (9M 2021: 9.7%).
Patients, clinics and employees
As of September 30, 2022, Fresenius Medical Care treated 344,593 patients in 4,153 dialysis clinics worldwide and had 122,758 employees (full-time equivalents) globally, compared to 123,528 employees as of September 30, 2021.
FME25 Savings generation ontrack
The target range of EUR 40-70 million set for 2022 as part of the FME25 transformation program has been reached with savings of EUR 54 million in the first nine months of the year. Fresenius Medical Care will continue to look for opportunities to extend FME25 initiatives to support the turnaround plan.
Outlook
Based on the delayed impacts of improvements in North American Health Care Services operations, the continuously challenging and uncertain macroeconomic environment, and the results for the third quarter, which had a more pronounced support by one-time effects, Fresenius Medical Care, as a matter of caution, extends its 2022 guidance range for net income decline from a high-teens to a high-teens to mid-twenties percentage range. The Company confirms its target for revenue to grow at a low single digit percentage rate in full year 2022.
| ^4^ | Net cash provided by / used in operating activities, after capital<br>expenditures, before acquisitions, investments, and dividends |
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Revenue and net income guidance are both on a constant currency basis and excluding special items.^5^
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the third quarter 2022 on October 31, at 3:30 p.m. CET / 10:30 a.m. EDT. Details will be available in the “Investors” section of the Company’s website. A replay will be available shortly after the call.
Please refer to our statement of earnings includedat the end of this news and to the attachments as separate PDF files for a complete overview of the results of the third quarter and firstnine months of 2022. 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 3.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 4,153 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approximately 345,000 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the Renal Care Continuum, the Company focuses on expanding in complementary areas and in the field of critical care. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.
Disclaimer:
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, impacts related to COVID-19, results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Implementation of measures as presented herein may be subject to information and consultation procedures with works councils and other employee representative bodies, as per local laws and practice. Consultation procedures may lead to changes on proposed measures.
| ^5^ | These targets are based on the 2021 results excluding the costs related to FME25 of EUR 49 million (for Net Income). They are in constant<br>currency and exclude special items. Special items include further costs related to FME25, the impact of the war in Ukraine, the impact<br>of hyperinflation in Turkiye, the Humacyte investment remeasurement, the net gain related to InterWell Health and other effects that are<br>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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Exhibit 99.3
Fresenius Medical Care AG &Co. KGaA
COMPLETE OVERVIEW OF THE THIRD QUARTERAND FIRST NINE MONTHS 2022
October 30, 2022
InvestorRelations
phone:+49 6172 609 2525
email: [email protected]
| Content: | |
|---|---|
| Statement of earnings | page 2 |
| Segment information | page 3 |
| Balance sheet | page 4 |
| Cash flow | page 5 |
| Revenue development | page 6 |
| Key metrics | page 7 |
| Quality data | page 8 |
| Reconciliation results excl. special items | page 9 |
| Outlook 2022 | page 10 |
Disclaimer
This release contains forward-looking 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
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € million, except share data, unaudited | 2022 | 2021 | Change | Change<br> at cc | 2022 | 2021 | Change | Change<br> at cc | ||||||||||||||||
| Health Care Services | 4,082 | 3,530 | 15.7 | % | 2.4 | % | 11,471 | 10,255 | 11.9 | % | 1.9 | % | ||||||||||||
| Health Care Products | 1,014 | 911 | 11.2 | % | 4.3 | % | 2,930 | 2,717 | 7.9 | % | 2.9 | % | ||||||||||||
| Total revenue | 5,096 | 4,441 | 14.7 | % | 2.8 | % | 14,401 | 12,972 | 11.0 | % | 2.1 | % | ||||||||||||
| Costs of revenue | 3,737 | 3,174 | 17.8 | % | 5.4 | % | 10,438 | 9,214 | 13.3 | % | 4.0 | % | ||||||||||||
| Gross profit | 1,359 | 1,267 | 7.2 | % | -3.7 | % | 3,963 | 3,758 | 5.5 | % | -2.6 | % | ||||||||||||
| Selling, general and administrative | 990 | 731 | 35.3 | % | 21.7 | % | 2,830 | 2,273 | 24.5 | % | 15.2 | % | ||||||||||||
| Research and development | 61 | 52 | 17.4 | % | 10.0 | % | 167 | 153 | 8.9 | % | 3.4 | % | ||||||||||||
| Income from equity method investees | (17 | ) | (21 | ) | -17.1 | % | -17.7 | % | (47 | ) | (71 | ) | -33.6 | % | -33.8 | % | ||||||||
| Remeasurement Gain From InterWell Health | (147 | ) | — | (147 | ) | — | ||||||||||||||||||
| Operating income | 472 | 505 | -6.5 | % | -16.5 | % | 1,160 | 1,403 | -17.3 | % | -24.4 | % | ||||||||||||
| Operating income excl. special items ^1^ | 470 | 513 | -8.5 | % | -17.6 | % | 1,322 | 1,423 | -7.1 | % | -14.4 | % | ||||||||||||
| Interest income | (16 | ) | (16 | ) | 3.0 | % | -15.6 | % | (43 | ) | (45 | ) | -4.2 | % | -5.8 | % | ||||||||
| Interest expense | 92 | 84 | 10.1 | % | -3.6 | % | 260 | 259 | 0.6 | % | -7.1 | % | ||||||||||||
| Interest expense, net | 76 | 68 | 11.8 | % | -0.8 | % | 217 | 214 | 1.6 | % | -7.4 | % | ||||||||||||
| Income before taxes | 396 | 437 | -9.4 | % | -19.0 | % | 943 | 1,189 | -20.7 | % | -27.5 | % | ||||||||||||
| Income tax expense | 112 | 105 | 6.9 | % | -3.7 | % | 242 | 274 | -11.8 | % | -18.9 | % | ||||||||||||
| Net income | 284 | 332 | -14.6 | % | -23.8 | % | 701 | 915 | -23.4 | % | -30.0 | % | ||||||||||||
| Net income attributable to noncontrolling interests | 54 | 59 | -9.2 | % | -22.5 | % | 166 | 174 | -4.9 | % | -15.3 | % | ||||||||||||
| Net income attributable to<br> shareholders of FMC AG & Co. KGaA | 230 | 273 | -15.7 | % | -24.1 | % | 535 | 741 | -27.8 | % | -33.5 | % | ||||||||||||
| Net income attributable to shareholders of FMC AG &<br> Co. KGaA excl. special items ^1^ | 231 | 280 | -17.2 | % | -24.6 | % | 660 | 756 | -12.6 | % | -18.5 | % | ||||||||||||
| Operating income | 472 | 505 | -6.5 | % | -16.5 | % | 1,160 | 1,403 | -17.3 | % | -24.4 | % | ||||||||||||
| Depreciation, amortization and impairment loss | 502 | 402 | 24.6 | % | 11.3 | % | 1,344 | 1,187 | 13.2 | % | 3.9 | % | ||||||||||||
| EBITDA | 974 | 907 | 7.3 | % | -4.2 | % | 2,504 | 2,590 | -3.3 | % | -11.5 | % | ||||||||||||
| Weighted average number of shares | 293,413,449 | 292,986,093 | 293,190,145 | 292,926,425 | ||||||||||||||||||||
| Basic earnings per share | € | 0.78 | € | 0.93 | -15.9 | % | -24.2 | % | € | 1.82 | € | 2.53 | -27.9 | % | -33.6 | % | ||||||||
| Basic earnings per ADS | € | 0.39 | € | 0.47 | -15.9 | % | -24.2 | % | € | 0.91 | € | 1.26 | -27.9 | % | -33.6 | % | ||||||||
| In percent of revenue | ||||||||||||||||||||||||
| Operating income margin | 9.3 | % | 11.4 | % | 8.1 | % | 10.8 | % | ||||||||||||||||
| Operating income margin excl. special items ^1^ | 9.2 | % | 11.6 | % | 9.2 | % | 11.0 | % | ||||||||||||||||
| EBITDA margin | 19.1 | % | 20.4 | % | 17.4 | % | 20.0 | % |
^1^ For a reconciliation of special items, please refer to the table on page 9.
| Statement of earnings | page 2 of 10 | October 30, 2022 |
|---|
Segment information
| Nine months ended September 30, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| unaudited | 2021 | Change | Change<br> at cc | 2022 | 2021 | Change | Change<br> at cc | ||||||||||||||||
| Total | |||||||||||||||||||||||
| Revenue in million | 5,096 | 4,441 | 14.7 | % | 2.8 | % | 14,401 | 12,972 | 11.0 | % | 2.1 | % | |||||||||||
| Operating income in million | 472 | 505 | -6.5 | % | -16.5 | % | 1,160 | 1,403 | -17.3 | % | -24.4 | % | |||||||||||
| Operating income margin | 9.3 | % | 11.4 | % | 8.1 | % | 10.8 | % | |||||||||||||||
| Days sales outstanding (DSO) | 69 | 59 | |||||||||||||||||||||
| Employees (full-time equivalents) | 122,758 | 123,528 | |||||||||||||||||||||
| North America | |||||||||||||||||||||||
| Revenue in million | 3,556 | 3,080 | 15.5 | % | -1.0 | % | 10,021 | 8,931 | 12.2 | % | -0.2 | % | |||||||||||
| Operating income in million | 469 | 446 | 5.1 | % | -8.0 | % | 1,113 | 1,242 | -10.4 | % | -19.8 | % | |||||||||||
| Operating income margin | 13.2 | % | 14.5 | % | 11.1 | % | 13.9 | % | |||||||||||||||
| Days sales outstanding (DSO) | 55 | 38 | |||||||||||||||||||||
| EMEA | |||||||||||||||||||||||
| Revenue in million | 720 | 671 | 7.3 | % | 8.3 | % | 2,121 | 2,033 | 4.3 | % | 5.9 | % | |||||||||||
| Operating income in million | 48 | 79 | -39.6 | % | -40.9 | % | 169 | 232 | -27.3 | % | -26.1 | % | |||||||||||
| Operating income margin | 6.6 | % | 11.7 | % | 8.0 | % | 11.4 | % | |||||||||||||||
| Days sales outstanding (DSO) | 89 | 89 | |||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||
| Revenue in million | 565 | 501 | 12.7 | % | 7.2 | % | 1,588 | 1,458 | 8.9 | % | 4.3 | % | |||||||||||
| Operating income in million | 85 | 86 | -1.3 | % | -2.0 | % | 255 | 256 | -0.3 | % | -1.2 | % | |||||||||||
| Operating income margin | 15.1 | % | 17.2 | % | 16.1 | % | 17.5 | % | |||||||||||||||
| Days sales outstanding (DSO) | 102 | 104 | |||||||||||||||||||||
| Latin America | |||||||||||||||||||||||
| Revenue in million | 243 | 178 | 36.4 | % | 36.3 | % | 633 | 508 | 24.7 | % | 23.2 | % | |||||||||||
| Operating income in million | 11 | 4 | 149.7 | % | 130.3 | % | 16 | 14 | 16.5 | % | -6.5 | % | |||||||||||
| Operating income margin | 4.5 | % | 2.4 | % | 2.5 | % | 2.7 | % | |||||||||||||||
| Days sales outstanding (DSO) | 116 | 143 | |||||||||||||||||||||
| Corporate | |||||||||||||||||||||||
| Revenue in million | 12 | 11 | 7.9 | % | -1.4 | % | 38 | 42 | -7.8 | % | -13.6 | % | |||||||||||
| Operating income in million | (141 | ) | (110 | ) | 27.1 | % | 17.6 | % | (393 | ) | (341 | ) | 15.4 | % | 9.5 | % |
All values are in Euros.
cc = constant currency. Changes in revenue, operating income, net income attributable to shareholders of FMC AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We calculate these non-IFRS financial measures at constant exchange rates to show changes in our revenue, operating income, net income attributable to shareholders of FMC AG & Co. KGaA and other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant Currency".
| Segment information | page 3 of 10 | October 30, 2022 |
|---|
Balance sheet
| September 30 | December 31 | |||||
|---|---|---|---|---|---|---|
| in € million, except for net leverage ratio, unaudited | 2022 | 2021 | ||||
| Assets | ||||||
| Current assets | 8,513 | 7,967 | ||||
| Goodwill and intangible assets | 18,791 | 15,821 | ||||
| Right of use assets | 4,571 | 4,316 | ||||
| Other non-current assets | 6,531 | 6,263 | ||||
| Total assets | 38,406 | 34,367 | ||||
| Liabilities and equity | ||||||
| Current liabilities | 6,357 | 7,258 | ||||
| Non-current liabilities | 15,314 | 13,130 | ||||
| Total equity | 16,735 | 13,979 | ||||
| Total liabilities and equity | 38,406 | 34,367 | ||||
| Equity/assets ratio | 44 | % | 41 | % | ||
| Debt and lease liabilities | ||||||
| Short-term debt from unrelated parties | 544 | 1,178 | ||||
| Short-term debt from related parties | 39 | 78 | ||||
| Current portion of long-term debt | 58 | 668 | ||||
| Current portion of lease liabilities from unrelated parties | 710 | 640 | ||||
| Current portion of lease liabilities from related parties | 22 | 21 | ||||
| Long-term debt, less current portion | 8,068 | 6,647 | ||||
| Lease liabilities from unrelated parties, less current portion | 4,262 | 3,990 | ||||
| Lease liabilities from related parties, less current portion | 83 | 98 | ||||
| Total debt and lease liabilities | 13,786 | 13,320 | ||||
| Minus: Cash and cash equivalents | (1,114 | ) | (1,482 | ) | ||
| Total net debt and lease liabilities | 12,672 | 11,838 | ||||
| Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures | ||||||
| Net income | 1,004 | 1,219 | ||||
| Income tax expense | 321 | 353 | ||||
| Interest income | (71 | ) | (73 | ) | ||
| Interest expense | 355 | 353 | ||||
| Depreciation and amortization | 1,693 | 1,586 | ||||
| Adjustments^1^ | 214 | 125 | ||||
| Annualized adjusted EBITDA | 3,516 | 3,563 | ||||
| Net leverage ratio | 3.6 | 3.3 |
^1^ Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Syndicated Credit Facility (2022: -€27 M; 2021: €13 M), non-cash charges, primarily related to pension expense (2022: €52 M; 2021: €49 M), impairment loss (2022: €88 M; 2021: €38 M) and special items, including costs related to the FME25 Program (2022: €106 M; 2021: €25 M), Net Gain Related to InterWell Health (2022: -€113 M), Humacyte Investment Remeasurement (2022: €79 M), Hyperinflation in Turkiye (2022: €6 M) and the Impacts Related to the War in Ukraine (2022: €23 M).
| Balance sheet | page 4 of 10 | October 30, 2022 |
|---|
Cash flow statement
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € million, unaudited | 2022 | 2021 | 2022 | 2021 | ||||||||
| Operating activities | ||||||||||||
| Net income | 284 | 332 | 701 | 915 | ||||||||
| Depreciation, amortization and impairment loss | 502 | 402 | 1,344 | 1,187 | ||||||||
| Change in working capital and other non-cash items | (128 | ) | (42 | ) | (477 | ) | (282 | ) | ||||
| Net cash provided by (used in) operating activities | 658 | 692 | 1,568 | 1,820 | ||||||||
| In percent of revenue | 12.9 | % | 15.6 | % | 10.9 | % | 14.0 | % | ||||
| Investing activities | ||||||||||||
| Purchases of property, plant and equipment and capitalized development costs | (160 | ) | (194 | ) | (495 | ) | (588 | ) | ||||
| Proceeds from sale of property, plant and equipment | 3 | 13 | 9 | 27 | ||||||||
| Capital expenditures, net | (157 | ) | (181 | ) | (486 | ) | (561 | ) | ||||
| Free cash flow | 501 | 511 | 1,082 | 1,259 | ||||||||
| In percent of revenue | 9.8 | % | 11.5 | % | 7.5 | % | 9.7 | % | ||||
| Acquisitions and investments, net of cash acquired, and purchases of intangible assets | 21 | (142 | ) | (40 | ) | (270 | ) | |||||
| Investments in debt securities | (6 | ) | 0 | (92 | ) | (63 | ) | |||||
| Proceeds from divestitures | 16 | 0 | 56 | 3 | ||||||||
| Proceeds from sale of debt securities | 25 | 22 | 52 | 118 | ||||||||
| Free cash flow after investing activities | 557 | 391 | 1,058 | 1,047 | ||||||||
| Cash flow | page 5 of 10 | October 30, 2022 | ||||||||||
| --- | --- | --- |
Revenue development
| in € million, unaudited | 2022 | 2021 | Change | Change <br> at cc | Organic<br> growth | Same <br> market <br> treatment <br> growth^1^ | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended September 30, | ||||||||||||||||
| Total revenue | 5,096 | 4,441 | 14.7 | % | 2.8 | % | 2.1 | % | ||||||||
| Health Care Services | 4,082 | 3,530 | 15.7 | % | 2.4 | % | 1.6 | % | -1.3 | % | ||||||
| Health Care Products | 1,014 | 911 | 11.2 | % | 4.3 | % | 4.3 | % | ||||||||
| North America | 3,556 | 3,080 | 15.5 | % | -1.0 | % | -1.9 | % | ||||||||
| Health Care Services | 3,269 | 2,810 | 16.3 | % | -0.3 | % | -1.3 | % | -2.4% ^2^ | |||||||
| Health Care Products | 287 | 270 | 6.4 | % | -9.0 | % | -9.0 | % | ||||||||
| EMEA | 720 | 671 | 7.3 | % | 8.3 | % | 8.2 | % | ||||||||
| Health Care Services | 377 | 346 | 8.7 | % | 8.5 | % | 8.4 | % | 0.5 | % | ||||||
| Health Care Products | 343 | 325 | 5.8 | % | 8.1 | % | 8.0 | % | ||||||||
| Asia-Pacific | 565 | 501 | 12.7 | % | 7.2 | % | 7.0 | % | ||||||||
| Health Care Services | 256 | 239 | 7.2 | % | 4.9 | % | 4.6 | % | 2.5 | % | ||||||
| Health Care Products | 309 | 262 | 17.8 | % | 9.2 | % | 9.2 | % | ||||||||
| Latin America | 243 | 178 | 36.4 | % | 36.3 | % | 37.1 | % | ||||||||
| Health Care Services | 173 | 126 | 37.1 | % | 41.6 | % | 42.8 | % | -0.7 | % | ||||||
| Health Care Products | 70 | 52 | 34.6 | % | 23.4 | % | 23.4 | % | ||||||||
| Corporate | 12 | 11 | 7.9 | % | -1.4 | % | ||||||||||
| Health Care Services | 7 | 9 | -6.2 | % | -18.9 | % | ||||||||||
| Health Care Products | 5 | 2 | 41.3 | % | 40.0 | % | ||||||||||
| Nine months ended September 30, | ||||||||||||||||
| Total revenue | 14,401 | 12,972 | 11.0 | % | 2.1 | % | 1.3 | % | ||||||||
| Health Care Services | 11,471 | 10,255 | 11.9 | % | 1.9 | % | 0.9 | % | -1.4 | % | ||||||
| Health Care Products | 2,930 | 2,717 | 7.9 | % | 2.9 | % | 2.9 | % | ||||||||
| North America | 10,021 | 8,931 | 12.2 | % | -0.2 | % | -1.3 | % | ||||||||
| Health Care Services | 9,184 | 8,148 | 12.7 | % | 0.2 | % | -0.9 | % | -2.3% ^2^ | |||||||
| Health Care Products | 837 | 783 | 6.8 | % | -5.0 | % | -5.0 | % | ||||||||
| EMEA | 2,121 | 2,033 | 4.3 | % | 5.9 | % | 5.6 | % | ||||||||
| Health Care Services | 1,083 | 1,020 | 6.2 | % | 6.7 | % | 6.2 | % | -0.1 | % | ||||||
| Health Care Products | 1,038 | 1,013 | 2.4 | % | 5.0 | % | 4.9 | % | ||||||||
| Asia-Pacific | 1,588 | 1,458 | 8.9 | % | 4.3 | % | 4.1 | % | ||||||||
| Health Care Services | 730 | 694 | 5.1 | % | 3.3 | % | 2.8 | % | 2.2 | % | ||||||
| Health Care Products | 858 | 764 | 12.4 | % | 5.3 | % | 5.3 | % | ||||||||
| Latin America | 633 | 508 | 24.7 | % | 23.2 | % | 23.7 | % | ||||||||
| Health Care Services | 452 | 364 | 24.1 | % | 25.8 | % | 26.6 | % | -1.4 | % | ||||||
| Health Care Products | 181 | 144 | 26.3 | % | 16.5 | % | 16.5 | % | ||||||||
| Corporate | 38 | 42 | -7.8 | % | -13.6 | % | ||||||||||
| Health Care Services | 22 | 29 | -21.5 | % | -29.6 | % | ||||||||||
| Health Care Products | 16 | 13 | 24.6 | % | 24.1 | % |
^1^ Same market treatment growth = organic growth less price effects
^2^ U.S. (excl. Mexico), same market treatment growth North America: -2.5% for the three months and -2.3% for the nine months ended September 30, 2022.
| Revenue development | page 6 of 10 | October 30, 2022 |
|---|
Key metrics Dialysis Care Services
| Nine<br> months ended September 30, 2022 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| unaudited | Clinics | Growth<br> in % | De novos | Patients | Growth<br> in % | Treatments | Growth<br> in % | ||||||||||
| Total | 4,153 | 0 | % | 35 | 344,593 | 0 | % | 39,152,144 | -1 | % | |||||||
| North America | 2,699 | 1 | % | 20 | 208,275 | -1 | % | 23,816,538 | -1 | % | |||||||
| EMEA | 814 | 0 | % | 5 | 66,293 | 1 | % | 7,428,380 | 1 | % | |||||||
| Asia-Pacific | 397 | -2 | % | 8 | 33,800 | 1 | % | 3,613,229 | 1 | % | |||||||
| Latin America | 243 | -1 | % | 2 | 36,225 | -1 | % | 4,293,997 | -3 | % | |||||||
| Key metrics | page 7 of 10 | October 30, 2022 | |||||||||||||||
| --- | --- | --- |
| Quality data^1^ | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| North America | EMEA | Latin America | Asia-Pacific | ||||||||||||||
| in<br> % of patients | Q3 2022 | Q3 2021 | Q3 2022 | **** | Q3 2021 | Q3 2022 | Q3 2021 | Q3 2022 | Q3 2021 | ||||||||
| Kt/V ≥<br> 1.2 | 98 | 97 | 93 | 93 | 93 | 94 | 95 | 94 | |||||||||
| Hemoglobin = 10-12 g/dl | 71 | 71 | 81 | 81 | 48 | 48 | 52 | 51 | |||||||||
| Calcium = 8.4-10.2 mg/dl | 84 | 83 | 81 | 80 | 78 | 74 | 72 | 70 | |||||||||
| Albumin ≥ 3.5 g/dl | 85 | 81 | 89 | 89 | 92 | 90 | 89 | 88 | |||||||||
| Phosphate ≤ 5.5 mg/dl | 59 | 57 | 78 | 78 | 81 | 76 | 69 | 67 | |||||||||
| Patients without catheter | **** | **** | **** | **** | |||||||||||||
| (after 90 days) | 76 | 78 | 76 | 77 | 77 | 78 | 79 | 80 | |||||||||
| in days | **** | **** | **** | **** | |||||||||||||
| Days in hospital per patient year | **** | **** | **** | **** | |||||||||||||
| (global basis) | 10.7 | 11.3 | (Q3<br>2021 | ) | **** | **** |
^1^ Definitions cf. Annual Report 2021, Section "Non-Financial Group Report"
| Quality data | page 8 of 10 | October 30, 2022 |
|---|
Reconciliation of non-IFRS financial measures tothe most directly comparable IFRS financial measures for comparability with the Company´s outlook
| Results<br> excl. special items | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in<br> € million, except share data, unaudited | Results 2022 | FME25<br><br><br> Program | Net<br> Gain<br><br> Related to<br><br> InterWell<br><br> Health^1^ | Humacyte<br><br> Investment<br><br> Remeasurement | Ukraine<br><br> War^2^ | Hyperinflation<br><br><br> in Turkiye | Results 2022 excl. special items | Results 2021 | FME25<br><br><br> program | Results 2021 excl. special items | Change | Change<br><br>at<br> cc | ||||||||||||||||||||
| Three months ended September 30, | ||||||||||||||||||||||||||||||||
| Total revenue | **** | 5,096 | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | 5,096 | **** | **** | 4,441 | **** | **** | **** | **** | 4,441 | **** | **** | 14.7 | % | **** | 2.8 | % |
| EBITDA | **** | 974 | **** | **** | 52 | **** | (113 | ) | **** | 1 | **** | 0 | **** | 0 | **** | **** | 914 | **** | **** | 907 | **** | **** | 9 | **** | 916 | **** | **** | -0.3 | % | **** | -10.6 | % |
| Total operating income | **** | 472 | **** | **** | 53 | **** | (56 | ) | **** | 1 | **** | 0 | **** | 0 | **** | **** | 470 | **** | **** | 505 | **** | **** | 8 | **** | 513 | **** | **** | -8.5 | % | **** | -17.6 | % |
| North America | 469 | 16 | (56 | ) | 1 | — | — | 430 | 446 | 3 | 449 | -4.3 | % | -16.7 | % | |||||||||||||||||
| EMEA | 48 | 9 | — | — | 0 | 1 | 58 | 79 | — | 79 | -26.8 | % | -25.1 | % | ||||||||||||||||||
| Asia-Pacific | 85 | 0 | — | — | — | — | 85 | 86 | — | 86 | -1.3 | % | -2.0 | % | ||||||||||||||||||
| Latin America | 11 | 3 | — | — | — | — | 14 | 4 | — | 4 | 219.3 | % | 191.6 | % | ||||||||||||||||||
| Corporate | (141 | ) | 25 | — | — | — | (1 | ) | (117 | ) | (110 | ) | 5 | (105 | ) | 10.8 | % | 2.2 | % | |||||||||||||
| Interest expense, net | 76 | 76 | 68 | 68 | 11.8 | % | -0.8 | % | ||||||||||||||||||||||||
| Income tax expense | 112 | 15 | (18 | ) | 0 | 0 | — | 109 | 105 | 1 | 106 | 1.8 | % | -7.6 | % | |||||||||||||||||
| Net income attributable to noncontrolling interests | 54 | 54 | 59 | 59 | -9.2 | % | -22.5 | % | ||||||||||||||||||||||||
| Net income^3^ | 230 | 38 | (38 | ) | 1 | 0 | 0 | 231 | 273 | 7 | 280 | -17.2 | % | -24.6 | % | |||||||||||||||||
| Basic earnings per share | € | 0.78 | **** | € | 0.13 | € | (0.13 | ) | € | 0.01 | € | 0.00 | € | 0.00 | **** | € | 0.79 | **** | € | 0.93 | **** | € | 0.02 | € | 0.95 | **** | **** | -17.3 | % | **** | -24.7 | % |
| Nine months ended September 30, | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total revenue | 14,401 | 14,401 | 12,972 | 12,972 | 11.0 | % | 2.1 | % | ||||||||||||||||||||||||
| EBITDA | **** | 2,504 | **** | **** | 101 | **** | (113 | ) | **** | 79 | **** | 23 | **** | 6 | **** | **** | 2,600 | **** | **** | 2,590 | **** | **** | 20 | **** | 2,610 | **** | **** | -0.4 | % | **** | -8.3 | % |
| Total operating income | 1,160 | 109 | (56 | ) | 79 | 24 | 6 | 1,322 | 1,403 | 20 | 1,423 | -7.1 | % | -14.4 | % | |||||||||||||||||
| North America | 1,113 | 36 | (56 | ) | 79 | — | — | 1,172 | 1,242 | 6 | 1,248 | -6.1 | % | -16.0 | % | |||||||||||||||||
| EMEA | 169 | 14 | — | — | 24 | 7 | 214 | 232 | — | 232 | -7.9 | % | -4.0 | % | ||||||||||||||||||
| Asia-Pacific | 255 | 0 | — | — | — | — | 255 | 256 | — | 256 | -0.2 | % | -1.1 | % | ||||||||||||||||||
| Latin America | 16 | 3 | — | — | — | — | 19 | 14 | — | 14 | 38.9 | % | 13.2 | % | ||||||||||||||||||
| Corporate | (393 | ) | 56 | — | — | — | (1 | ) | (338 | ) | (341 | ) | 14 | (327 | ) | 3.5 | % | -1.8 | % | |||||||||||||
| Interest expense, net | 217 | 217 | 214 | 214 | 1.6 | % | -7.4 | % | ||||||||||||||||||||||||
| Income tax expense | 242 | 31 | (18 | ) | 21 | 3 | — | 279 | 274 | 5 | 279 | -0.3 | % | -8.0 | % | |||||||||||||||||
| Net income attributable to noncontrolling interests | 166 | 166 | 174 | 174 | -4.9 | % | -15.3 | % | ||||||||||||||||||||||||
| Net income^3^ | 535 | 78 | (38 | ) | 58 | 21 | 6 | 660 | 741 | 15 | 756 | -12.6 | % | -18.5 | % | |||||||||||||||||
| Basic earnings per share | € | 1.82 | € | 0.27 | € | (0.13 | ) | € | 0.20 | € | 0.07 | € | 0.02 | € | 2.25 | € | 2.53 | € | 0.05 | € | 2.58 | -12.7 | % | -18.6 | % |
^1^Remeasurement gain of the investment, prior to the transaction, in InterWell Health LLC, the impairment of certain long-lived assets belonging to Acumen Physician Solutions, LLC which was transferred to InterWell Health as part of the transaction and certain transaction-related costs.
^2^Bad debt expense in Russia and Ukraine and accruals for certain risks associated with allowances on inventories related to the Ukraine War.
^3^ Attributable to shareholders of FMC AG & Co. KGaA
| Reconciliation results excl. special items | page 9 of 10 | October 30, 2022 |
|---|
Outlook 2022
| Revised Outlook 2022 | Previous Outlook 2022 | ||
|---|---|---|---|
| Results 2021 | (at Constant Currency, except for ROIC) | (at Constant Currency, except for ROIC) | |
| Revenue^1^ | €17,619 M | growth: low-single-digit percentage rate | growth: low-single-digit percentage rate |
| Revenue growth at Constant Currency^1^ | growth: low-single-digit percentage rate | growth: low-single-digit percentage rate | |
| Operating income^1^ | €1,915 M | decline: mid-teens to high-teens percentage rate | decline: around mid-teens percentage rate |
| Net income^1, 2^ | €1,018 M | decline: high-teens to mid-twenties percentage rate | decline: around high-teens percentage rate |
| Net income^2^ growth at Constant Currency^1^ | decline: high-teens to mid-twenties percentage rate | decline: around high-teens percentage rate | |
| ROIC^1^ | 5.1% | around 4.0% | ≥ 4.0% |
^1^ Outlook 2022 is based on the assumptions outlined in the presentation for the third quarter and first nine months 2022 and excludes special items. Special items include further costs related to the FME25 Program, net gain related to InterWell Health, Humacyte investment remeasurement, hyperinflation in Turkiye, the impacts related to the war in Ukraine and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. The growth rates are based on the results 2021 excluding the costs related to the FME25 Program (€63 M for operating income and €49 M for net income).
^2^ Net income attributable to shareholders of FMC AG & Co. KGaA.
| Outlook 2022 | page 10 of 10 | October 30, 2022 |
|---|