CONFERENCE CALL 2015 RESULTS. Frankfurt stock exchange (DAX30): FRE US ADR program (OTC): FSNUY

Transcription

1 CONFERENCE CALL 205 RESULTS Frankfurt stock exchange (DAX30): FRE US ADR program (OTC): FSNUY

2 SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation. Page 2

3 FRESENIUS GROUP: FINANCIAL RESULTS Q4/205 FY/205 Sales Growth cc Growth actual rates 7,257 m 5% % 27,626 m 9% 9% EBIT Growth cc Growth actual rates,09 m 0% 9% 3,958 m 3% 25% Net income Growth cc Growth actual rates 44 m 24% 30%,423 m 2% 3% Before special items Page 3

4 FRESENIUS GROUP: DIVIDEND DEVELOPMENT AND TOTAL SHAREHOLDER RETURN 23 rd consecutive dividend increase Total Return: Fresenius outperforms index % Fresenius share DAX ~7% p.a. ~20% p.a '93 '05 '06 '07 '08 '09 '0 ' '2 '3 '4 '5 Dividend growth aligned to EPS growth Pay-out ratio: 2% Compounded annual total return Dec 3, 2005 Dec 3, 205 % Proposal Source: Bloomberg; dividends reinvested Page 4

5 FRESENIUS GROUP: FINANCIAL RESULTS BY BUSINESS SEGMENT FY/205 Growth FY YoY Sales EBIT US$6,738 m US$2,327 m 6% 3% Sales EBIT 5,950 m,89 m 6% 36% Sales EBIT 5,578 m 640 m 6% 6% Sales EBIT,8 m 64 m 7% 8% Before special items For a detailed overview of special items please see the reconciliation tables on slides Page 5

6 FRESENIUS KABI: 206 GROWTH OUTLOOK BY REGION Europe Low to mid single-digit organic sales growth expected Regional Sales Distribution 205 North America Roughly flat organic sales development expected 36% - Tough comps in Q2-Q4/6 - Products launches expect top end of 6 to 0 target range, in 206 and Outlook assumes gradual further easing of IV drug shortages Emerging Markets 29% North America 35% Europe 36% Emerging Markets Mid to high single-digit organic sales growth expected - Recovery in Asia-Pacific excluding China - China: initial tenders indicate potential price reductions in low to mid single digits; continued double-digit volume growth expected Page 6

7 FRESENIUS HELIOS: INTEGRATION PROCESS COMPLETED, TARGETING CONTINUED GROWTH - 4% organic sales increase in Q4/5, driven by solid admission growth - Continued favorable reimbursement environment; DRG inflator set at 2.95% - Hospital network Wir für Gesundheit with more than 5,000 PlusCards in place as of Jan 3, Privatization trend ongoing; acquisition of 500-bed hospital in Feb 206 Growth Largest network with hospitals ~ 34,000 beds ~.3 million inpatient admissions ~ 3.4 million outpatient admissions As of Dec 3, 205 Page 7

8 FRESENIUS VAMED: BALANCED PORTFOLIO PROVIDES STABLE GROWTH Growth Sustained Double-Digit Growth m order intake at all-time high, providing a solid basis for FY/206 - Further expansion of geographic presence primarily in emerging and developing countries - Revenue share of service business expected to increase mid to long-term m ,020,042,8 200 Expansion of Service Business % of total sales 20 33% 67% m % 5% 20 0 Service Business Project Business Page 8

9 FRESENIUS GROUP: NEW MID-TERM GROWTH TARGETS FY billion in sales billion in net income - At comparable exchange rates - Includes small and mid-size acquisitions - EAT CAGR at mid-point of mid-term target: 0.5 % (Previous implied EAT CAGR of mid-term target: 8.4 %) Net income attributable to shareholders of Fresenius SE & Co. KGaA; 205 before special items Page 9

10 GROUP FINANCIALS Q4/FY 205 OUTLOOK 206 Page 0

11 FRESENIUS GROUP: PROFIT AND LOSS STATEMENT Growth Q4 YoY Growth FY YoY m Q4/205 actual rates constant rates FY/205 actual rates constant rates Sales 7,257 % 5% 27,626 9% 9% EBIT,09 9% 0% 3,958 25% 3% Net interest % 25% -63-2% 8% Income taxes % -33% % -2% Net income % 24%,423 3% 2% Before special items 2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items For a detailed overview of special items please see the reconciliation tables on slides Page

12 FRESENIUS KABI: EBIT MARGIN FULLY IN LINE WITH GUIDANCE m Q4/205 Growth Q4 YoY FY/205 Growth FY YoY Europe 95-9% 352 2% Margin 7.% -380 bps 6.6% 20 bps North America 93 40% % Margin 35.9% 250 bps 38.% 70 bps Asia-Pacific/Latin America/Africa 89 5% 34 3% Margin 2.0% 660 bps 8.% 230 bps Corporate and Corporate R&D -60 2% % Total EBIT 37 33%,89 36% at constant currency 26% 2% Margin 20.9% 20.0% EBIT before special items For a detailed overview of special items please see the reconciliation tables on slides Page 2

13 FRESENIUS HELIOS: STRONG EBIT MARGIN INCREASE DUE TO SUCCESSFUL INTEGRATION OF RHÖN HOSPITALS m Q4/205 Growth Q4 YoY FY/205 Growth FY YoY Total sales,4 4% 5,578 6% EBIT Established clinic portfolio 68 8% 63 5% Margin.9% 40 bps.7% 0 bps Acquisitions / Divestitures 0 9 (consolidation / deconsolidation 0.0% 4.5% < yr) Margin Total EBIT 68 8% 640 6% Margin.9% 40 bps.5% 00 bps EBIT before special items For a detailed overview of special items please see the reconciliation tables on slides Page 3

14 CASH FLOW DEVELOPMENT Operating CF Capex (net) Free Cash Flow m Q4/205 LTM Margin Q4/205 LTM Margin Q4/205 LTM Margin % % % 232.% % % % % % Corporate/Other 23 n.a. -5 n.a. 8 n.a. Excl. FMC % % 49 8.% 2 Group,76 2.0% % % Before acquisitions and dividends 2 Margin incl. FMC dividend 3 Understated: 7.0% excluding 44 million of capex commitments from acquisitions Page 4

15 FRESENIUS GROUP: LEVERAGE RATIO Target 206 ~ ,2 2,3,2,2,2,2,2,2, Q 204 Q2 204 Q Q 205 Q2 205 Q Pro forma acquisitions; before special items 2 Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU ) 3 Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before special items 4 Before special items at annual average FX rates for both EBITDA and net debt Page 5

16 FRESENIUS GROUP: 206 FINANCIAL OUTLOOK BY BUSINESS SEGMENT Fresenius Kabi Sales growth organic EBIT constant currency low single-digit roughly flat Fresenius Helios Sales growth organic EBIT 3% 5% m Fresenius Vamed Sales growth organic EBIT growth 5% 0% 5% 0% Page 6

17 FRESENIUS GROUP: 206 FINANCIAL GUIDANCE Sales growth constant currency 6% 8% Net income growth constant currency 8% 2% Net income attributable to shareholders of Fresenius SE & Co. KGaA; 205 before special items Page 7

18 ATTACHMENTS Page 8

19 FRESENIUS GROUP: FINANCIAL RESULTS BY BUSINESS SEGMENT Q4 Q4/205 Growth Q4 YoY Sales EBIT US$4,348 m US$662 m % 0% Sales EBIT,59 m 37 m 0% 33% Sales EBIT,4 m 68 m 4% 8% Sales EBIT 387 m 34 m 0% 6% Before special items For a detailed overview of special items please see the reconciliation tables on slides Page 9

20 FRESENIUS GROUP: OVERVIEW CALCULATION OF NONCONTROLLING INTEREST m FY/205 FY/204 Earnings before tax and noncontrolling interest 3,262 2,52 Taxes Noncontrolling interest, thereof Fresenius Medical Care net income not attributable to Fresenius (FY/5: ~69%) Noncontrolling interest holders in Fresenius Medical Care (FY/5: US$284 m according to Fresenius Medical Care s Financial Statements) Noncontrolling interest holders in Fresenius Kabi (- 30 m), Fresenius Helios (- m), Fresenius Vamed (- m) and due to Fresenius Vamed s 23% external ownership (- 0 m) Net income attributable to Fresenius SE & Co. KGaA,358,067 Page 20

21 FRESENIUS GROUP: CASH FLOW m 205 Margin 204 Margin Growth YoY Operating Cash Flow 3, % 2,585.% 29% Capex (net) -, % -, % -% Free Cash Flow, %, % 48% (before acquisitions and dividends) Acquisitions (net) -32-2,028 98% Dividends % Free Cash Flow (after acquisitions and dividends),94 4.3% -, % 89% Page 2

22 CASH FLOW DEVELOPMENT 205 Operating CF Capex (net) Free Cash Flow m FY/205 Margin FY/205 Margin FY/205 Margin % % % 68.% % % % % % Corporate/Other -24 n.a. -2 n.a. -36 n.a. excl. FMC, % %, % 2 Group 3, % -, %, % Before acquisitions and dividends 2 Incl. FMC dividend 3 Understated: 7.0% excluding 44 million of capex commitments from acquisitions Page 22

23 FRESENIUS GROUP: CONSISTENT CASH GENERATION AND PROVEN TRACK RECORD OF DELEVERAGING CFFO margin FCF margin (before acquisitions & dividends) % % Capex in % of sales Net Debt / EBITDA % ,0 3,5 3,0 2, , adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU ) Page 23

24 FRESENIUS GROUP: SOLID BALANCE SHEET STRUCTURE Assets Equity + Liabilities 42% 39% Equity + Minority interest Non-current assets 75% 75% 34% 39% Debt Receivables % 0% Other 4% 5% 24% 22% Other Dec 3, 5 Dec 3, 4 Dec 3, 5 Dec 3, 4 B/S total ( m) 43,70 39,788 43,70 39,788 Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU ) Page 24

25 FRESENIUS GROUP: DEBT MATURITY PROFILE DEC 3, 205 m ,000 Fresenius Medical Care Fresenius excl. FMC , , , , Based on utilization of major long-term financing instruments Page 25

26 FRESENIUS KABI: STRONG ORGANIC SALES GROWTH IN Q4 m Q4/205 Organic Growth Q4 YoY FY/205 Organic Growth FY YoY I.V. Drugs 627 6% 2,429 8% Infusion Therapy 20 % 94 % Clinical Nutrition 393 5%,560 7% Medical Devices/ Transfusion Technology 289 3%,047 0% Total sales,59 8% 5,950 8% Page 26

27 FRESENIUS KABI: STRONG ORGANIC SALES GROWTH IN Q4 m Q4/205 Organic Growth Q4 YoY FY/205 Organic Growth FY YoY Europe 557 2% 2,23 4% North America 538 5% 2,093 6% Asia-Pacific 279 7%,4 5% Latin America/Africa 45 4% 593 3% Total sales,59 8% 5,950 8% Page 27

28 FRESENIUS KABI: PROFIT AND LOSS STATEMENT m Remarks 205 Sales 5,950 5,46 8% organic growth EBITDA margin % EBIT margin %, , , Net interest Earnings before taxes and noncontrolling interest, Income taxes Tax rate % Noncontrolling interest Net income Before special items Attributable to shareholders of Fresenius Kabi AG Page 28

29 FRESENIUS KABI: CASH FLOW STATEMENT m Remarks 205 Net income (incl. noncontrolling interest) Depreciation / amortization Change in working capital Cash flow from operations Margin % CAPEX, net % discretionary (204: 76%) 33% non-discretionary (204: 24%) Cash flow before acquisitions and dividends Acquisitions, net 6 00 Free cash flow (before dividends) After special items Page 29

30 FRESENIUS KABI: BALANCE SHEET m Remarks 205 Accounts receivable DSO 205: 46 days (204: 56) Inventories,202,038 SOI 205: 35 days (204: 26) Fixed assets 7,277 6,7 Goodwill (Dec 3, 205): 5.0 bn Other assets,225,05 Total assets 0,45 9,642 Debt 5,234 5,92 Other liabilities 2,09,862 Equity (incl. noncontrolling int.) 3,08 2,588 Total liabilities and shareholders' equity 0,45 9,642 Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU ) Page 30

31 FRESENIUS HELIOS: 205 CLINIC DEVELOPMENT PLAN Years in Portfolio < >6 Total No. of clinics Revenue ( m) ,002-2,837 5,429 Target EBIT margin (%) EBIT ( m) Reported EBIT margin (%) EBIT ( m) No. of clinics > target No. of clinics < target Includes all hospitals acquired from Rhön Klinikum, 2 m integration costs allocated to individual hospitals. Page 3

32 FRESENIUS HELIOS: ORGANIC SALES GROWTH FULLY IN LINE WITH GUIDANCE m Q4/205 Growth Q4 YoY FY/205 Growth FY YoY Established clinic portfolio,409 4% 5,379 3% Acquisitions (consolidation < yr) 2 99 Total sales,4 4% 5,578 6% Page 32

33 FRESENIUS HELIOS: PERFORMANCE INDICATORS Change No. of hospitals 0 % - Acute care clinics % - Post-acute care clinics % No. of beds 34,076 34,88 0% - Acute care clinics 28,94 29,068 -% - Post-acute care clinics 5,62 5,20 % Admissions - Acute care (inpatient),93,423,48,473 4% Occupancy - Post-acute care 82% 83% Average length of stay (days) - Acute care -Post-acute care Bad debt in % of sales 0.2% 0.3% Page 33

34 FRESENIUS HELIOS: ACQUISITIONS / DIVESTITURES CONSOLIDATION EFFECTS Acquisitions Annualized sales Diekholzen ~ 8 m consolidated as of April, 205 Niederberg ~ 67 m (204) consolidation expected in Q2/206 Page 34

35 FRESENIUS HELIOS: PROFIT & LOSS STATEMENT m Remarks 205 Sales 5,578 5,244 3% organic sales growth EBITDA Margin % Depreciation / amortization EBIT Margin % Net interest Earnings before taxes and noncontrolling interest Income taxes Tax rate % Noncontrolling interest - - Purchase of 49% minority share Gotha Net income Before special items Attributable to shareholders of HELIOS Kliniken GmbH Page 35

36 FRESENIUS HELIOS: CASH FLOW m Remarks 205 Net income (incl. noncontrolling interest) Depreciation / amortization 9 79 Change in working capital Cash flow from operations Margin % CAPEX, net Cash flow before acquisitions and dividends Acquisitions, net Divestment of hospitals Borna and Zwenkau Free cash flow (before dividends) Final purchase price Rhön Purchase of 49% minority share Gotha After special items Page 36

37 FRESENIUS HELIOS: BALANCE SHEET m Remarks 205 Accounts receivable DSO 205: 43 days (204: 42) Property, plant and equipment (net) 2,538 2,473 Goodwill 4,443 4,386 Other assets Total assets 8,430 8,352 Debt,282,394 Incl. debt from 2005 HELIOS acquisition ( 600 m) Other liabilities,54,507 Equity (incl. noncontrolling interest) 5,634 5,45 Total liabilities and shareholders equity 8,430 8,352 Page 37

38 FRESENIUS VAMED: SALES AND EBIT IN LINE WITH EXPECTATIONS m Q4/205 Growth Q4 YoY FY/205 Growth FY YoY Project business 242-4% 575 3% Service business 45 7% 543 2% Total sales 387 0%,8 7% Total EBIT 34 6% 64 8% Margin 8.8% 50 bps 5.7% 0 bps Order intake % 904 8% Order backlog,650 8% Project business only Page 38

39 FRESENIUS VAMED: PROFIT & LOSS STATEMENT m Remarks 205 Sales,8,042 6% organic growth EBITDA Margin % EBIT Margin % Net interest -3 - Earnings before taxes and noncontrolling interest 6 58 Income taxes Tax rate % Noncontrolling interest - - Net income 44 4 ROE (before taxes) % Attributable to shareholders of Vamed AG Page 39

40 FRESENIUS VAMED: CASH FLOW m Remarks 205 Net income (incl. noncontrolling interest) Depreciation / amortization 2 Change in working capital Cash flow from operations Margin % CAPEX, net - -9 Cash flow (before acquisitions and dividends) 42-8 Acquisitions, net -4-0 Free cash flow (before dividends) Page 40

41 FRESENIUS VAMED: BALANCE SHEET m Remarks 205 Accounts receivable DSO 205: 65 days (204: 70) Property, plant and equipment 7 68 Intangible assets Other assets Total assets Debt 6 59 Other liabilities Equity (incl. noncontrolling interest) Total liabilities and shareholders equity Page 4

42 FRESENIUS GROUP: KEY FIGURES ACCORDING TO IFRS FY/205 U.S. GAAP FY/205 IFRS Sales 27,626 27,995 EBIT 3,958 4,00 Net interest Net income 2,358,386 Net income 3,423,436 Operating Cash flow 3,327 3,349 Balance sheet total 43,70 43,387 Before special items 2 Net income attributable to shareholders of Fresenius SE & Co. KGaA 3 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items For a detailed overview of special items please see the reconciliation tables on slides Page 42

43 RECONCILIATION ACCORDING TO U.S. GAAP Q4 205 / Q4 204 The Group s U.S. GAAP financial results as of December 3, 205 and December 3, 204 comprise special items. Net income attributable to shareholders of Fresenius SE & Co. KGaA was adjusted for these special items. The table below shows the special items and the reconciliation from net income (before special items) to earnings according to U.S. GAAP. m Q4/205 before special items efficiency program Q4/205 according to U.S. GAAP (incl. special items) Q4/204 before special items Fenwal integration costs integration costs for acquired Rhön hospitals Q4/204 according to U.S. GAAP (incl. special items) Sales 7,257 7,257 6,520 6,520 EBIT Interest result, , Net income before taxes Income taxes Net income Less noncontrolling interest Net income attributable to shareholders of Fresenius SE & Co. KGaA The special items are reported in the Group Corporate/Other segment. Page 43

44 RECONCILIATION ACCORDING TO U.S. GAAP FY 205 / FY 204 The Group s U.S. GAAP financial results as of December 3, 205 and December 3, 204 comprise special items. Net income attributable to shareholders of Fresenius SE & Co. KGaA was adjusted for these special items. The table below shows the special items and the reconciliation from net income (before special items) to earnings according to U.S. GAAP. m FY/205 before special items efficiency program integration costs for acquired Rhön hospitals disposal gains from two HELIOS hospitals FY/205 according to U.S. GAAP (incl. special items) FY/204 before special items Fenwal integration costs integration costs for acquired Rhön hospitals disposal gains from two HELIOS hospitals disposal gain from Rhön stake FY/204 according to U.S. GAAP (incl. special items) Sales 27,626 27,626 23,23 23,23 EBIT Interest result 3, , , ,4-602 Net income before taxes Income taxes 3, , , , Net income Less noncontrolling interest 2, , , , Net income attributable to shareholders of Fresenius SE & Co. KGaA, ,358, ,067 The special items are reported in the Group Corporate/Other segment. Page 44

45 SHARE INFORMATION Share key facts Number of shares 545,727,950 WKN / ISIN / DE Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de ADR key facts Ratio ADR CUSIP / ISIN Ticker symbol Exchange Structure Depositary bank 4 ADRs = ordinary share 35804M05 / US35804M053 FSNUY OTCQX International Premier Sponsored Level I ADR Deutsche Bank As of December 3, 205 Page 45

46 FINANCIAL CALENDAR Report on st quarter Annual General Meeting, Frankfurt/Main Report on 2 nd quarter Report on 3 rd quarter 206 Please note that these dates could be subject to change. CONTACT Investor Relations Fresenius SE & Co. KGaA phone: ir-fre@fresenius.com For further information and current news: Page 46