Form 6-K Fresenius Medical Care For: May 06
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 2021
Commission file number: 001-32749
FRESENIUS MEDICAL CARE AG & Co. KGaA
(Translation of registrant's name into English)
Else-Kröner Strasse 1
61346 Bad Homburg
Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
On May 6, 2021, Fresenius Medical Care AG & Co. KGaA (the “Company”) issued a Press Release announcing its first quarter results for the period ending March 31, 2021. A copy of the Press Release is furnished as Exhibit 99.1 and the corresponding financial figures as Exhibit 99.2.
The attached Press Release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. To supplement our first quarter 2021 consolidated financial results presented in accordance with International Financial Reporting Standards, or IFRS, we have used non-GAAP financial measures, including (a) EBITDA, or operating income excluding interest, taxes, depreciation and amortization, (b) free cash flow, (c) net leverage ratio (ratio of net debt to adjusted EBITDA) and (d) results presented in constant currency. These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. In addition, because we have historically reported certain non-GAAP financial measures in our financial results, we believe the inclusion of these non-IFRS financial measures provides consistency and comparability in our financial reporting to prior periods for which these non-GAAP financial measures were previously reported. These non-GAAP financial measures should not be used as a substitute for or be considered superior to GAAP financial measures. Reconciliation of the non-GAAP financial measures 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.
EXHIBITS
The following exhibits are being furnished with this Report:
Exhibit 99.1 | Press release issued on May 6, 2021. |
Exhibit 99.2 | Complete overview of the first quarter 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: May 6, 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 | |
[email protected] | |
Contact for analysts and investors | |
Dr. Dominik Heger | |
T +49 6172 609-2601 | |
[email protected] | |
May 6, 2021 | www.freseniusmedicalcare.com |
Fresenius Medical Care delivers solid first quarter in light of the COVID-19 pandemic, confirms outlook for 2021
- | Organic treatment growth impacted by COVID-19 pandemic as expected |
- | Reported revenue and earnings continued to be adversely affected by exchange rate effects |
- | Earnings development supported by phasing and expected lower SG&A expense anticipated to reverse throughout the year |
- | Vaccination of patients accelerated to 51 percent globally |
- | Financial targets for FY 2021 confirmed |
Rice Powell, Chief Executive Officer of Fresenius Medical Care, said: “The COVID-19 pandemic continues to plague our societies and especially our vulnerable patients. We are very grateful that we are increasingly allowed to directly vaccinate our dialysis patients in our clinics. By doing so, we can support healthcare systems, contribute to saving lives and overcoming this health crisis as fast as possible. While we have seen significant progress in the roll-out and adoption of vaccinations globally, COVID-19 infection rates in several countries remain high. This will, unfortunately, continue to affect many of our patients. Consequently, this will also continue to impact our organic growth and weigh on our earnings development throughout the year. As the underlying development in the first three months was in line with our expectations, we confirm our guidance for the full year 2021.”
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Key figures (IFRS)
Q1 2021 EUR m | Q1 2020 EUR m | Growth yoy | Growth yoy, cc | |||||||||||||
Revenue | 4,210 | 4,488 | -6 | % | +1 | % | ||||||||||
Operating income | 474 | 555 | -15 | % | -8 | % | ||||||||||
Net income1 | 249 | 283 | -12 | % | -6 | % | ||||||||||
Basic EPS (EUR) | 0.85 | 0.95 | -10 | % | -4 | % |
cc = at constant currency, EPS = earnings per share
COVID-19 impact on organic growth continues to accumulate as expected
The adverse COVID-19 impact on organic growth in the Health Care Services business amounted to around 350 basis points in the first quarter. While monthly excess mortality continuously declined since February, it is expected to further accumulate and peak in the second quarter.
Besides Fresenius Medical Care’s comprehensive measures to reduce infection risks and maintain safe operations in its dialysis centers, vaccinations are crucial for containing the COVID-19 pandemic. In several countries, Fresenius Medical Care has made its dialysis clinics available for the direct vaccination of patients and, where requested, the general public. At the end of March, the U.S. government agreed to directly allocate COVID-19 vaccine to dialysis centers nationwide. At Fresenius Medical Care’s U.S. facilities, more than 64% of patients and 47% of dialysis center staff have been at least partially vaccinated. The Company is making further progress every day. On a global basis, about 51 percent of Fresenius Medical Care’s patients have received at least one vaccination.
Outlook
Fresenius Medical Care confirms its outlook for FY 2021 as outlined on February 23, 2021. The Company expects revenue to grow at a low- to mid-single digit percentage rate and net income to decline at a high-teens to mid-twenties percentage rate against the 2020 base.2
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2 These targets are based on the 2020 results excluding the impairment of goodwill and trade names in the Latin America Segment of EUR 195 million. They are inclusive of anticipated COVID-19 effects, in constant currency and exclude special items. Special items include costs related to FME25 and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.
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The Company continues to monitor closely the latest COVID-19-related developments in respect to additional variants of the virus and potential surges in different regions.
Fresenius Medical Care will experience an adverse earnings effect due to the U.S. government delaying the CKCC models (Comprehensive Kidney Care Contracting) by nine months to January 1, 2022. This effect will be offset by the further extension of the U.S. Medicare sequestration relief from April 1, 2021 until the end of 2021.
To support its 2025 strategy, further strengthen profitability and compensate for the negative earnings effects of the COVID-19 pandemic, Fresenius Medical Care has initiated the FME25 program. The Company is currently undergoing a detailed review of its global operating model and will provide an update in the second half of 2021.
Driving value-based care
Fresenius Medical Care aims to build sustainable partnerships with payors to support the transition from a fee-for-service to a pay-for-performance healthcare system. This applies equally to reimbursement models of commercial and public insurers. In the U.S., Fresenius Medical Care recently extended its value-based arrangement with Aetna, Inc., a provider of health insurance and related services and subsidiary of CVS Health Corporation, to include patients enrolled in Medicare Advantage. In late 2020, Fresenius Medical Care expanded its cooperation with health insurer Humana and thereby implemented the existing clinical network contract as a value-based payment model.
Revenue and earnings impacted by COVID-19 and exchange rate effects
Revenue declined by 6% to EUR 4,210 million (+1% at constant currency). Organic growth amounted to 1%.
Health Care Services revenue decreased by 7% to EUR 3,325 million (+1% at constant currency, +1% organic). The decline was mainly due to a negative exchange rate effect, the absence of a prior-year partial reversal of a revenue recognition adjustment, the impact from COVID-19 and lower reimbursement for calcimimetics.
Health Care Products revenue declined by 1% to EUR 885 million (+4% at constant currency, +5% organic). Headwinds from exchange rates and lower sales of acute care products as well as in-center disposables were partially offset by higher sales of machines for chronic treatment, peritoneal dialysis products and home hemodialysis products.
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Operating income decreased by 15% to EUR 474 million (-8% at constant currency), resulting in a margin of 11.3% (Q1 2020: 12.4%). The decrease was mainly driven by effects from COVID-19 across all regions, higher personnel expenses and a significant negative exchange rate effect. In addition, operating income was negatively affected by a positive prior-year effect from the divestiture of cardiovascular clinics and a prior-year partial reversal of a revenue recognition adjustment. These negative effects were partially offset by an improved payor mix, mainly driven by Medicare Advantage, and expected lower SG&A expense, which are anticipated to reverse in the remainder of the year.
Net income1 declined by 12% to EUR 249 million (-6% at constant currency). Besides the above-mentioned operating earnings effects, net income was supported by a 27% decrease of net interest expense to EUR 76 million (Q1 2020: EUR 104 million).
The first quarter 2020 included negative COVID-19 effects that reversed in Q2 2020, including the compensation received under the CARES Act, and therewith increase the base for the second quarter 2021. These base effects impact the phasing of net income growth in 2021.
Basic earnings per share (EPS) decreased by 10% to EUR 0.85 (-4% at constant currency). The decline as a result of the above-mentioned earnings effects was partially offset by a decrease in the average weighted number of shares outstanding due to the redemption of shares following the completed share buyback program.
Cash flow development
Fresenius Medical Care generated EUR 208 million of operating cash flow (Q1 2020: EUR 584 million), resulting in a margin of 4.9% (Q1 2020: 13.0%). The decline was driven by the seasonality in invoicing and periodic delays in payment of public health care organizations.
Free cash flow3 amounted to EUR 29 million (Q1 2020: EUR 304 million), resulting in a margin of 0.7% (Q1 2020: 6.8%).
Regional developments
In North America, revenue declined by 9% to EUR 2,899 million (-1% at constant currency, -1% organic). Besides a sizable negative exchange rate effect, this was mainly due to a substantial negative impact of COVID-19 on the Services business and lower reimbursement for calcimimetics.
3 Net cash used in operating activities, after capital expenditures, before acquisitions, investments and dividends
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Operating income in North America declined by 14% to EUR 399 million (-6% at constant currency), resulting in a margin of 13.7% (Q1 2020: 14.5%). The decrease was mainly due to the effects of COVID-19, higher personnel expense, headwinds from exchange rates, a positive prior-year effect from the divestiture of cardiovascular clinics, a prior-year partial reversal of a revenue recognition adjustment and a lower contribution from calcimimetics. This was mitigated by an improved payor mix, mainly driven by an increased Medicare Advantage share, contributions from acquisitions and lower SG&A expense due to favorable phasing.
Revenue in EMEA decreased by 1% and amounted to EUR 670 million (+1% at constant currency, +1% organic). This was mainly driven by the unfavorable effects of COVID-19 and negative exchange rate effects.
Operating income in the EMEA region declined by 21% to EUR 80 million (-21% at constant currency), resulting in a margin of 11.9% (Q1 2020: 14.9%). The prior-year base benefitted from the revaluation of an investment. In addition, the decline was mainly driven by an unfavorable country mix in the Products business, a decrease in dialysis days as well as higher cost for personnel and supplies in certain countries. This was partially offset by lower bad debt expense.
In Asia-Pacific, revenue increased by 6% to EUR 471 million (+10% at constant currency, +11% organic), mainly due to organic growth in the Services and Product businesses as well as contributions from acquisitions. This was partially offset by the effect of clinics closed or sold in the prior year.
Operating income grew by 11% to EUR 85 million (+14% at constant currency), resulting in a margin of 18.1% (Q1 2020: 17.3%). The prior-year base benefited from a gain from the deconsolidation of clinics. The increase was mainly driven by business growth and a favorable impact from manufacturing.
Including a very significant headwind from exchange rates and a negative effect from COVID-19, Latin America revenue decreased by 5% to EUR 159 million (+17% at constant currency, +15% organic). Operating income in Latin America declined by 3% to EUR 7 million (+3% at constant currency), resulting in a margin of 4.2% (Q1: 2020: 4.1%).
Patients, Clinics and Employees
As of March 31, 2021, Fresenius Medical Care treated 344,476 patients in 4,110 dialysis clinics worldwide. At the end of the first quarter, the Company had 124,995 employees (full-time equivalents) worldwide, compared to 121,403 employees as of March 31, 2020.
Conference call
Fresenius Medical Care will host a conference call to discuss the results of the first quarter of 2021 on May 6, 2021 at 3:30 p.m. CET / 9:30 a.m. ET. 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.
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Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results of the first quarter of 2021. Our 6-K disclosure provides more details.
Fresenius Medical Care is the world's leading provider of products and services for individuals with renal diseases of which around 3.7 million patients worldwide regularly undergo dialysis treatment. Through its network of 4,110 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 344.476 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the Renal Care Continuum, the company focuses on expanding in complementary areas and in the field of critical care. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.
Disclaimer:
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, impacts related to the COVID-19 pandemic results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
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Statement of earnings | ||||
in € million, except share data |
Three months ended March 31 | ||||||||||||||||
Change | ||||||||||||||||
2021 | 2020 | Change | at cc | |||||||||||||
Health Care Services | 3,325 | 3,595 | -7.5 | % | 0.7 | % | ||||||||||
Health Care Products | 885 | 893 | -0.9 | % | 4.3 | % | ||||||||||
Revenue | 4,210 | 4,488 | -6.2 | % | 1.4 | % | ||||||||||
Costs of revenue | 3,003 | 3,097 | -3.0 | % | 5.1 | % | ||||||||||
Gross profit | 1,207 | 1,391 | -13.2 | % | -6.9 | % | ||||||||||
Selling, general and administrative | 712 | 810 | -12.1 | % | -5.9 | % | ||||||||||
Research and development | 49 | 46 | 5.9 | % | 10.1 | % | ||||||||||
Income from equity method investees | (28 | ) | (20 | ) | 36.0 | % | 36.5 | % | ||||||||
Operating income | 474 | 555 | -14.6 | % | -8.3 | % | ||||||||||
Interest expense, net | 76 | 104 | -27.0 | % | -21.6 | % | ||||||||||
Income before taxes | 398 | 451 | -11.7 | % | -5.2 | % | ||||||||||
Income tax expense | 94 | 100 | -6.7 | % | -0.1 | % | ||||||||||
Net income | 304 | 351 | -13.1 | % | -6.7 | % | ||||||||||
Net income attributable to noncontrolling interests | 55 | 68 | -18.1 | % | -10.6 | % | ||||||||||
Net income1 | 249 | 283 | -11.9 | % | -5.8 | % | ||||||||||
Weighted average number of shares | 292,878,085 | 297,842,343 | ||||||||||||||
Basic earnings per share | € | 0.85 | € | 0.95 | -10.5 | % | -4.2 | % | ||||||||
In percent of revenue | ||||||||||||||||
Operating income margin | 11.3 | % | 12.4 | % |
1 | Attributable to shareholders of FMC-AG & Co. KGaA |
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Exhibit 99.2
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE FIRST QUARTER 2021
May 6, 2021
Investor Relations
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 |
Outlook 2021 | page 9 |
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 |
1 of 9 | May 6, 2021 |
Statement of earnings
Three months ended March 31 | ||||||||||||||||
in € million, except share data, unaudited | 2021 | 2020 | Change | Change at cc | ||||||||||||
Health Care Services | 3,325 | 3,595 | -7.5 | % | 0.7 | % | ||||||||||
Health Care Products | 885 | 893 | -0.9 | % | 4.3 | % | ||||||||||
Total revenue | 4,210 | 4,488 | -6.2 | % | 1.4 | % | ||||||||||
Costs of revenue | 3,003 | 3,097 | -3.0 | % | 5.1 | % | ||||||||||
Gross profit | 1,207 | 1,391 | -13.2 | % | -6.9 | % | ||||||||||
Selling, general and administrative | 712 | 810 | -12.1 | % | -5.9 | % | ||||||||||
Research and development | 49 | 46 | 5.9 | % | 10.1 | % | ||||||||||
Income from equity method investees | (28 | ) | (20 | ) | 36.0 | % | 36.5 | % | ||||||||
Operating income | 474 | 555 | -14.6 | % | -8.3 | % | ||||||||||
Operating income margin | 11.3 | % | 12.4 | % | ||||||||||||
Interest income | (15 | ) | (9 | ) | 74.3 | % | 85.1 | % | ||||||||
Interest expense | 91 | 113 | -19.2 | % | -13.3 | % | ||||||||||
Interest expense, net | 76 | 104 | -27.0 | % | -21.6 | % | ||||||||||
Income before taxes | 398 | 451 | -11.7 | % | -5.2 | % | ||||||||||
Income tax expense | 94 | 100 | -6.7 | % | -0.1 | % | ||||||||||
Net income | 304 | 351 | -13.1 | % | -6.7 | % | ||||||||||
Net income attributable to noncontrolling interests | 55 | 68 | -18.1 | % | -10.6 | % | ||||||||||
Net income attributable to shareholders of FMC-AG & Co. KGaA | 249 | 283 | -11.9 | % | -5.8 | % | ||||||||||
Operating income | 474 | 555 | -14.6 | % | -8.3 | % | ||||||||||
Depreciation, amortization and impairment loss | 388 | 401 | -3.1 | % | 4.2 | % | ||||||||||
EBITDA | 862 | 956 | -9.8 | % | -3.1 | % | ||||||||||
EBITDA margin | 20.5 | % | 21.3 | % | ||||||||||||
Weighted average number of shares | 292,878,085 | 297,842,343 | ||||||||||||||
Basic earnings per share | € | 0.85 | € | 0.95 | -10.5 | % | -4.2 | % | ||||||||
Basic earnings per ADS | € | 0.42 | € | 0.47 | -10.5 | % | -4.2 | % |
Statement of earnings | page 2 of 9 | May 6, 2021 |
Segment information
Three months ended March 31 | ||||||||||||||||
unaudited | 2021 | 2020 | Change | Change at cc | ||||||||||||
Total | ||||||||||||||||
Revenue in € million | 4,210 | 4,488 | -6.2 | % | 1.4 | % | ||||||||||
Operating income in € million | 474 | 555 | -14.6 | % | -8.3 | % | ||||||||||
Operating income margin | 11.3 | % | 12.4 | % | ||||||||||||
Days sales outstanding (DSO) | 60 | 77 | ||||||||||||||
Employees (full-time equivalents) | 124,995 | 121,403 | ||||||||||||||
North America | ||||||||||||||||
Revenue in € million | 2,899 | 3,186 | -9.0 | % | -0.6 | % | ||||||||||
Operating income in € million | 399 | 463 | -14.0 | % | -6.3 | % | ||||||||||
Operating income margin | 13.7 | % | 14.5 | % | ||||||||||||
Days sales outstanding (DSO) | 43 | 65 | ||||||||||||||
EMEA | ||||||||||||||||
Revenue in € million | 670 | 679 | -1.3 | % | 1.5 | % | ||||||||||
Operating income in € million | 80 | 101 | -20.9 | % | -20.5 | % | ||||||||||
Operating income margin | 11.9 | % | 14.9 | % | ||||||||||||
Days sales outstanding (DSO) | 85 | 98 | ||||||||||||||
Asia-Pacific | ||||||||||||||||
Revenue in € million | 471 | 443 | 6.4 | % | 9.6 | % | ||||||||||
Operating income in € million | 85 | 77 | 11.0 | % | 13.6 | % | ||||||||||
Operating income margin | 18.1 | % | 17.3 | % | ||||||||||||
Days sales outstanding (DSO) | 102 | 103 | ||||||||||||||
Latin America | ||||||||||||||||
Revenue in € million | 159 | 168 | -5.3 | % | 16.9 | % | ||||||||||
Operating income in € million | 7 | 7 | -3.2 | % | 2.5 | % | ||||||||||
Operating income margin | 4.2 | % | 4.1 | % | ||||||||||||
Days sales outstanding (DSO) | 128 | 133 | ||||||||||||||
Corporate | ||||||||||||||||
Revenue in € million | 11 | 12 | -4.0 | % | 1.7 | % | ||||||||||
Operating income in € million | (97 | ) | (93 | ) | 3.3 | % | 7.4 | % |
Segment information | page 3 of 9 | May 6, 2021 |
Balance sheet
March 31 | December 31 | |||||||
in € million, except for net leverage ratio, unaudited | 2021 | 2020 | ||||||
Assets | ||||||||
Current assets | 7,789 | 7,275 | ||||||
Goodwill and intangible assets | 15,041 | 14,340 | ||||||
Right of use assets | 4,268 | 4,130 | ||||||
Other non-current assets | 6,061 | 5,944 | ||||||
Total assets | 33,159 | 31,689 | ||||||
Liabilities and equity | ||||||||
Current liabilities | 7,243 | 6,160 | ||||||
Non-current liabilities | 12,716 | 13,198 | ||||||
Total equity | 13,200 | 12,331 | ||||||
Total liabilities and equity | 33,159 | 31,689 | ||||||
Equity/assets ratio | 40 | % | 39 | % | ||||
Debt and lease liabilities | ||||||||
Short-term debt from unrelated parties | 1,127 | 63 | ||||||
Short-term debt from related parties | 14 | 17 | ||||||
Current portion of long-term debt | 785 | 1,008 | ||||||
Current portion of long-term lease liabilities from unrelated parties | 617 | 588 | ||||||
Current portion of long-term lease liabilities from related parties | 21 | 21 | ||||||
Long-term debt, less current portion | 6,315 | 6,800 | ||||||
Long-term lease liabilities from unrelated parties, less current portion | 3,907 | 3,764 | ||||||
Long-term lease liabilities from related parties, less current portion | 114 | 119 | ||||||
Total debt and lease liabilities | 12,900 | 12,380 | ||||||
Minus: Cash and cash equivalents | (1,073 | ) | (1,082 | ) | ||||
Total net debt and lease liabilities | 11,827 | 11,298 | ||||||
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures | ||||||||
Net income | 1,390 | 1,435 | ||||||
Income tax expense | 494 | 501 | ||||||
Interest income | (48 | ) | (42 | ) | ||||
Interest expense | 388 | 410 | ||||||
Depreciation and amortization | 1,575 | 1,587 | ||||||
Adjustments 1 | 253 | 249 | ||||||
Annualized adjusted EBITDA | 4,052 | 4,140 | ||||||
Net leverage ratio | 2.9 | 2.7 |
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 (2021: €6 M), non-cash charges, primarily related to pension expense (2021: €49 M; 2020: €50 M) and impairment loss (2021: €198 M; 2020: €199 M).
Balance sheet | page 4 of 9 | May 6, 2021 |
Cash flow statement
Three months ended March 31 | ||||||||
in € million, unaudited | 2021 | 2020 | ||||||
Operating activities | ||||||||
Net income | 304 | 351 | ||||||
Depreciation / amortization / impairment loss | 388 | 401 | ||||||
Change in working capital and other non-cash items | (484 | ) | (168 | ) | ||||
Net cash provided by (used in) operating activities | 208 | 584 | ||||||
In percent of revenue | 4.9 | % | 13.0 | % | ||||
Investing activities | ||||||||
Purchases of property, plant and equipment and capitalized development costs | (184 | ) | (282 | ) | ||||
Proceeds from sale of property, plant and equipment | 5 | 2 | ||||||
Capital expenditures, net | (179 | ) | (280 | ) | ||||
Free cash flow | 29 | 304 | ||||||
In percent of revenue | 0.7 | % | 6.8 | % | ||||
Acquisitions and investments, net of cash acquired, and purchases of intangible assets | (106 | ) | (37 | ) | ||||
Investments in debt securities | (11 | ) | (1 | ) | ||||
Proceeds from divestitures | 2 | (2 | ) | |||||
Proceeds from sale of debt securities | 70 | 8 | ||||||
Free cash flow after investing activities | (16 | ) | 272 |
Cash flow | page 5 of 9 | May 6, 2021 |
Revenue development
Same | ||||||||||||||||||||||||
market | ||||||||||||||||||||||||
Change | Organic | treatment | ||||||||||||||||||||||
in € million, unaudited | 2021 | 2020 | Change | at cc | growth | growth1 | ||||||||||||||||||
Three months ended March 31 | ||||||||||||||||||||||||
Total revenue | 4,210 | 4,488 | -6.2 | % | 1.4 | % | 1.4 | % | ||||||||||||||||
Health Care Services | 3,325 | 3,595 | -7.5 | % | 0.7 | % | 0.6 | % | -1.5 | % | ||||||||||||||
Health Care Products | 885 | 893 | -0.9 | % | 4.3 | % | 4.6 | % | ||||||||||||||||
North America | 2,899 | 3,186 | -9.0 | % | -0.6 | % | -0.6 | % | ||||||||||||||||
Health Care Services | 2,643 | 2,908 | -9.1 | % | -0.7 | % | -0.7 | % | -2.6 | %2 | ||||||||||||||
Health Care Products | 256 | 278 | -8.1 | % | 0.4 | % | 0.4 | % | ||||||||||||||||
EMEA | 670 | 679 | -1.3 | % | 1.5 | % | 1.4 | % | ||||||||||||||||
Health Care Services | 332 | 341 | -2.5 | % | 1.0 | % | 0.4 | % | -2.7 | % | ||||||||||||||
Health Care Products | 338 | 338 | -0.1 | % | 1.9 | % | 2.4 | % | ||||||||||||||||
Asia-Pacific | 471 | 443 | 6.4 | % | 9.6 | % | 10.9 | % | ||||||||||||||||
Health Care Services | 228 | 218 | 4.6 | % | 8.0 | % | 10.5 | % | 7.4 | % | ||||||||||||||
Health Care Products | 243 | 225 | 8.1 | % | 11.1 | % | 11.3 | % | ||||||||||||||||
Latin America | 159 | 168 | -5.3 | % | 16.9 | % | 14.9 | % | ||||||||||||||||
Health Care Services | 115 | 121 | -4.9 | % | 18.1 | % | 15.1 | % | 2.4 | % | ||||||||||||||
Health Care Products | 44 | 47 | -6.4 | % | 14.0 | % | 14.6 | % | ||||||||||||||||
Corporate | 11 | 12 | -4.0 | % | 1.7 | % | ||||||||||||||||||
Health Care Services | 7 | 7 | 1.8 | % | 11.2 | % | ||||||||||||||||||
Health Care Products | 4 | 5 | -12.4 | % | -12.2 | % |
1 | same market treatment growth = organic growth less price effects |
2 | U.S. (excl. Mexico), same market treatment growth North America: -3.0% for the three months ended March 31, 2021. |
Revenue development | page 6 of 9 | May 6, 2021 |
Key metrics Dialysis Care Services
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||
unaudited | Clinics | Growth in % | De novos | Patients | Growth in % | Treatments | Growth in % | |||||||||||||||||||||
Total | 4,110 | 3 | % | 22 | 344,476 | -1 | % | 13,004,009 | -1 | % | ||||||||||||||||||
North America | 2,655 | 2 | % | 11 | 209,279 | -2 | % | 7,926,555 | -2 | % | ||||||||||||||||||
EMEA | 809 | 3 | % | 9 | 64,978 | -3 | % | 2,441,914 | -3 | % | ||||||||||||||||||
Asia-Pacific | 399 | 6 | % | 2 | 33,334 | 6 | % | 1,169,169 | 1 | % | ||||||||||||||||||
Latin America | 247 | 2 | % | 36,885 | -1 | % | 1,466,371 | 3 | % |
Key metrics | page 7 of 9 | May 6, 2021 |
Quality data1 | North America | EMEA | Latin America | Asia-Pacific | ||||||||||||||||||||||||||||
in % of patients | Q1 2021 | Q1 2020 | Q1 2021 | Q1 2020 | Q1 2021 | Q1 2020 | Q1 2021 | Q1 2020 | ||||||||||||||||||||||||
Kt/V ≥ 1.2 | 97 | 97 | 93 | 94 | 91 | 90 | 93 | 94 | ||||||||||||||||||||||||
Hemoglobin = 10-12 g/dl | 69 | 70 | 81 | 82 | 48 | 50 | 50 | 55 | ||||||||||||||||||||||||
Calcium = 8.4-10.2 mg/dl | 81 | 80 | 78 | 79 | 74 | 75 | 71 | 74 | ||||||||||||||||||||||||
Albumin ≥ 3.5 g/dl1) | 80 | 80 | 90 | 89 | 89 | 90 | 89 | 88 | ||||||||||||||||||||||||
Phosphate ≤ 5.5 mg/dl | 58 | 59 | 79 | 80 | 76 | 76 | 63 | 63 | ||||||||||||||||||||||||
Patients without catheter (after 90 days) | 79 | 81 | 77 | 78 | 78 | 79 | 81 | 83 | ||||||||||||||||||||||||
in days | ||||||||||||||||||||||||||||||||
Days in hospital per patient year | 9.8 | 10.2 | 7.8 | 7.5 | 4.0 | 4.2 | 3.9 | 2.3 |
1 Definitions cf. Annual Report 2020, Section "Non-Financial Group Report"
Quality data | page 8 of 9 | May 6, 2021 |
Outlook 2021
Outlook 2021 | ||||||
(at Constant Currency, | ||||||
Results 2020 | except for ROIC) | |||||
Revenue1 | € | 17,859 M | growth: low to mid single digit percentage rate | |||
Revenue growth at Constant Currency1 | growth: low to mid single digit percentage rate | |||||
Operating income1 | € | 2,499 M | decline: mid teens to low twenties percentage rate | |||
Net income1, 2 | € | 1,359 M | decline: high teens to mid twenties percentage rate | |||
Net income2 growth at Constant Currency1 | decline: high teens to mid twenties percentage rate | |||||
ROIC1,3 | 6.6 | % | ≥ 5.0% |
1 Outlook 2021 is inclusive of anticipated COVID-19 effects and excl. special items. Special items include costs related to the FME25 program and effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. The growth rates are based on the results 2020 excl. the Impairment Charge of goodwill and trade names in the Latin America Segment of €195 M.
2 | Net income attributable to shareholders of FMC-AG & Co. KGaA. |
3 | Results 2020: excl. Impairment Charge. |
Outlook | page 9 of 9 | May 6, 2021 |
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