Fresenius Medical Care AG & Co. KGaA (FMS)
Filed: 24 Feb 10, 12:00am
Exhibit 99.1
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Investor News | Fresenius Medical Care AG & Co. KGaA | |
Investor Relations | ||
Else-Kröner-Str. 1 | ||
D-61352 Bad Homburg | ||
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| Contact: | |
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| Oliver Maier | |
| Phone: | + 49 6172 609 2601 |
| Fax: | + 49 6172 609 2301 |
| E-mail: | ir@fmc-ag.com |
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| North America: | |
| Terry L. Morris | |
| Phone: | + 1 800 948 2538 |
| Fax: | + 1 615 345 5605 |
| E-mail: | ir@fmc-ag.com |
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| Internet: www.fmc-ag.com | |
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| February 24, 2010 |
Fresenius Medical Care Reports Excellent 4th-Quarter and Full-Year
2009 Results; Provides strong outlook for 2010
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2009 Full-Year Summary: |
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Net revenue |
| $ | 11,247 million |
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| +6 | % | |
Operating income (EBIT) |
| $ | 1,756 million |
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| +5 | % | |
Net income attributable to |
| $ | 891 million |
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| +9 | % | |
Earnings per share |
| $ | 2.99 |
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| +9 | % | |
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Dividend Proposal | Ordinary Share |
| € | 0.61 |
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| +5 | % |
| Preference Share |
| € | 0.63 |
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| +5 | % |
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2009 4th-Quarter Summary: |
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Net revenue |
| $ | 3,035 million |
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| +12 | % | |
Operating income (EBIT) |
| $ | 491 million |
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| +13 | % | |
Net income attributable to |
| $ | 247 million |
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| +15 | % | |
Earnings per share |
| $ | 0.82 |
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| +15 | % | |
Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (“the Company” or “FMC AG & Co. KGaA”), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2009.
4th-Quarter 2009:
Revenue
Net revenue for the fourth quarter of 2009 increased by 12% to $3,035 million (8% at constant currency) compared to the fourth quarter of 2008. Organic revenue growth worldwide was 8%. Dialysis Services revenue grew by 12% to $2,226 million (11% at constant currency) in the fourth quarter of 2009. Dialysis Product revenue increased by 10% to $809 million (an increase of 3% at constant currency) in the same period.
North America revenue increased by 9% to $2,012 million. Organic revenue growth was 9%. Dialysis Services revenue grew by 10% to $1,799 million. Average revenue per treatment for U.S. clinics increased to $357 in the fourth quarter of 2009 compared to $335 for the corresponding quarter in 2008 and $348 for the third quarter of 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis Product revenue decreased by 3% to $213 million as a result of decreased sales of our phosphate-binding drug PhosLo®, partially offset by sales of our intravenous iron products, which increased by 14%, as well as increased sales of dialyzers, solutions and concentrates.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 2 of 18 |
International revenue increased by 18% to $1,023 million, compared to the fourth quarter of 2008. Based on constant currency, revenue grew by 8%. Organic revenue growth was 7%. Dialysis Services revenue was $427 million, an increase of 22% (+12% at constant currency). Dialysis Product revenue increased by 15% to $596 million (+5% at constant currency), led by sales of products for acute care treatments, sales of dialyzers, bloodlines and pharmaceuticals.
Earnings
Operating income (EBIT) for the fourth quarter increased by 13% to $491 million compared to the fourth quarter of 2008. The operating margin increased from 15.9% in the fourth quarter of 2008 to 16.2% in the fourth quarter of 2009.
In North America, the operating margin increased from 16.7% in the fourth quarter of 2008 to 17.7% in the fourth quarter of 2009. The margin development was impacted favorably by an increase in revenue per treatment and strong cost controls. The revenue per treatment improved mainly due to increased commercial rates, an increase in the utilization of pharmaceuticals and a favorable development of the payor mix. The cost per treatment was impacted favorably by a strong cost management and a decrease in bad-debt expenses due to excellent cash collections on receivables. This was offset partially by higher costs for pharmaceuticals, mainly related to utilization as well as the impact of the launch of a generic version of PhosLo® in the U.S. market and increased depreciation expense.
In the International segment, the operating margin decreased from 17.7% to 17.6% due to higher bad-debt and R&D expenses, partially offset by more favorable foreign exchange rate effects, lower production costs resulting from lower prices for raw material and energy as well as economies of scale.
Net interest expense for the fourth quarter of 2009 was $75 million compared to $85 million in the comparable quarter of 2008, mainly due to lower short-term interest rates.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 3 of 18 |
Income tax expense was $145 million for the fourth quarter of 2009 compared to $120 million in the fourth quarter of 2008, reflecting effective tax rates of 34.9% and 34.3%, respectively.
Net income attributable to FMC AG & Co. KGaA for the fourth quarter of 2009 was $247 million, an increase of 15%.
Earnings per share (EPS) for the fourth quarter of 2009 rose by 15% to $0.82 per ordinary share. The weighted average number of shares outstanding for the fourth quarter of 2009 was approximately 299 million shares compared to 297.6 million shares for the fourth quarter of 2008. The increase in shares outstanding resulted from stock option exercises in the past 12 months.
Cash Flow
In the fourth quarter of 2009, the Company generated $458 million in cash from operations, an increase of 52% compared to the fourth quarter of 2008 and representing approximately 15% of revenue. The cash flow performance was influenced positively by a favorable development of the Days Sales Outstanding and increased earnings.
A total of $173 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $285 million compared to $120 million in the fourth quarter of 2008. A total of $79 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $206 million compared to $32 million in the fourth quarter of the previous year.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 4 of 18 |
Full Year 2009:
Revenue and Earnings
Net revenue was $11,247 million for the full year 2009, an increase of 6% compared to 2008. At constant currency, net revenue rose 9%. Organic growth was 8% in 2009.
Operating income (EBIT) increased by 5% to $1,756 million in 2009. The operating margin for 2009 was 15.6% compared to 15.8% for 2008.
Net interest expense for the full year 2009 was $300 million compared to $336 million in 2008, mainly due to lower short-term interest rates.
Income tax expense was $491 million for the full year 2009 compared to $476 million in 2008, reflecting effective tax rates of 33.7% and 35.6%, respectively. Tax expense was impacted positively by increased non-taxable non-controlling interest in North America.
For the full year 2009, net income attributable to FMC AG & Co. KGaA was $891 million, up 9% from 2008.
Earnings per ordinary share rose by 9% to $2.99 in 2009. The weighted average number of shares outstanding during 2009 was approximately 298.3 million.
Cash Flow
Cash from operations during 2009 was $1,339 million compared to $1,016 million for 2008, representing approximately 11.9% of revenue. The cash flow generation benefited from increased earnings and the favorable development of the Days Sales Outstanding.
A total of $562 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for 2009 was $777 million compared to $343 million in 2008. A total of $136 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $641 million compared to $125 million in 2008.
Please refer to the attachments for a complete overview on the fourth quarter and the full year of 2009 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 5 of 18 |
Patients – Clinics – Treatments
As of Dec. 31, 2009, Fresenius Medical Care treated 195,651 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 132,262 patients, an increase of 5%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 133,969. The International segment served 63,389 patients, an increase of 9% over the prior year.
As of Dec. 31, 2009, the Company operated a total of 2,553 clinics worldwide. This is comprised of 1,784 clinics in North America (1,814 including managed clinics), an increase of 6%, and 769 clinics in the International segment, an increase of 10%.
Fresenius Medical Care delivered approximately 29.43 million dialysis treatments worldwide during 2009. This represents an increase of 6% year over year. North America accounted for 19.87 million treatments, an increase of 4%, and the International segment delivered 9.56 million treatments, an increase of 10% over the previous year.
Employees
As of Dec. 31, 2009, Fresenius Medical Care had 67,988 employees (full-time equivalents) worldwide compared to 64,666 employees at the end of 2008. This increase of 3,322 employees is due to the overall growth in the Company’s business.
Dividend
The Company will continue to follow an earnings-driven dividend policy. For the 13th consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2009. At the Annual General Meeting to be held on May 11, 2010, shareholders will be asked to approve a dividend of €0.61 per ordinary share, an increase of 5% from 2008 (€0.58).
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 6 of 18 |
Debt/EBITDA Ratio
The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.69 at the end of 2008 to 2.46 at the end of 2009.
Rating
There have been no rating changes in the fourth quarter 2009, Standard & Poor’s Rating Services continued to rate the Company’s corporate credit as ‘BB’ with a ‘stable’ outlook. Moody’s also affirmed its rating of the Company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the Company’s corporate credit as ‘BB’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.
Issuance of Senior Notes
At the beginning of the first quarter of 2010 Fresenius Medical Care issued senior notes due 2016 in the amount of €250 million. The coupon is 5.5%. With a price at issuance of 98.6636% the yield to maturity at issuance was 5.75%. Proceeds were used to repay short-term indebtedness and for general corporate purposes. The senior notes are guaranteed on a senior basis jointly and severally by the Company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH.
Fresenius Medical Care Announces Management Board Changes
In December 2009 Fresenius Medical Care announced a transition to a new management board structure drawing entirely on internal management strength. The contract of our Chairman, Dr. Ben Lipps, has been extended and Rice Powell has been appointed as Deputy Chairman of the Fresenius Medical Care Management Board. The Company has also appointed Mike Brosnan as our new Chief Financial Officer. Kent Wanzek was named to the new Fresenius Medical Care Management Board position for Global Manufacturing Operations to provide stronger manufacturing coordination on a global basis.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 7 of 18 |
Outlook for 2010
For the full year of 2010, the Company expects to achieve revenue of more than $12 billion.
Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.
The Company expects to spend $550 to $650 million on capital expenditures and up to $400 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.
Ben Lipps, chief executive officer of Fresenius Medical Care, said: “We are very pleased to report excellent financial results for the fourth quarter and full year of 2009. With this performance, we clearly achieved the top end of our earnings guidance for 2009. Cash flow from operations was very strong and clearly ahead of our expectations. In 2010, we expect to face similar challenges as we did in 2009 but we continue with confidence to execute our strategic plan while maintaining vigilance as to local health care trends. We remain committed to providing the best quality of care to maximize patients overall health and well-being. Our early stage experience with a comprehensive payment demonstration concept, online Hemofiltration and nocturnal dialysis are particularly encouraging in that they show a positive effect on total health care costs while improving patient care outcomes.”
Video Webcast
Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2009 on Wednesday, Feb. 24, 2010, at 3:15 pm CET / 9:15 am EST. The Company invites investors to view the live webcast of the meeting at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 8 of 18 |
Fresenius Medical Care is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,890,000 individuals worldwide. Through its network of 2,553 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 195,651 patients around the globe. Fresenius Medical Care also is the world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).
For more information about Fresenius Medical Care visit the Company’s website at www.fmc-ag.com.
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.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 9 of 18 |
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Fresenius Medical Care |
| Three Months Ended |
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| Twelve Months Ended |
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(in US-$ thousands, except |
| 2009 |
| 2008 |
| % Change |
| 2009 |
| 2008 |
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earnings per share and per share data) |
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(audited) |
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Net revenue |
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Dialysis Care |
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| 2,226,459 |
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| 1,984,014 |
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| 12.2 | % |
| 8,350,233 |
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| 7,737,498 |
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| 7.9 | % |
Dialysis Products |
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| 808,970 |
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| 738,024 |
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| 9.6 | % |
| 2,897,244 |
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| 2,874,825 |
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| 0.8 | % |
Total net revenue |
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| 3,035,429 |
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| 2,722,038 |
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| 11.5 | % |
| 11,247,477 |
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| 10,612,323 |
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| 6.0 | % |
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Cost of revenue |
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| 1,976,435 |
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| 1,781,754 |
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| 10.9 | % |
| 7,415,965 |
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| 6,983,475 |
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| 6.2 | % |
Gross profit |
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| 1,058,994 |
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| 940,284 |
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| 12.6 | % |
| 3,831,512 |
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| 3,628,848 |
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| 5.6 | % |
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Selling, general and administrative |
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| 538,900 |
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| 487,497 |
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| 10.5 | % |
| 1,982,106 |
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| 1,876,177 |
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| 5.6 | % |
Research and development |
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| 29,302 |
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| 20,261 |
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| 44.6 | % |
| 93,810 |
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| 80,239 |
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| 16.9 | % |
Operating income (EBIT) |
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| 490,792 |
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| 432,526 |
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| 13.5 | % |
| 1,755,596 |
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| 1,672,432 |
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| 5.0 | % |
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Interest income |
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| (4,600 | ) |
| (5,545 | ) |
| -17.0 | % |
| (21,397 | ) |
| (24,811 | ) |
| -13.8 | % |
Interest expense |
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| 79,894 |
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| 90,278 |
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| -11.5 | % |
| 321,360 |
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| 361,553 |
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| -11.1 | % |
Interest expense, net |
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| 75,294 |
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| 84,733 |
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| -11.1 | % |
| 299,963 |
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| 336,742 |
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| -10.9 | % |
Income before taxes |
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| 415,498 |
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| 347,793 |
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| 19.5 | % |
| 1,455,633 |
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| 1,335,690 |
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| 9.0 | % |
Income tax expense1) |
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| 144,977 |
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| 119,189 |
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| 21.6 | % |
| 490,413 |
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| 475,702 |
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| 3.1 | % |
Net income |
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| 270,521 |
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| 228,604 |
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| 18.3 | % |
| 965,220 |
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| 859,988 |
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| 12.2 | % |
Less: Net income attributable to Noncontrolling interest1) |
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| 23,902 |
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| 14,293 |
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| 67.2 | % |
| 74,082 |
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| 42,381 |
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| 74.8 | % |
Net income attributable to FMC AG & Co. KGaA |
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| 246,619 |
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| 214,311 |
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| 15.1 | % |
| 891,138 |
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| 817,607 |
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| 9.0 | % |
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Operating income (EBIT) |
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| 490,792 |
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| 432,526 |
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| 13.5 | % |
| 1,755,596 |
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| 1,672,432 |
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| 5.0 | % |
Depreciation and amortization |
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| 122,952 |
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| 108,910 |
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| 12.9 | % |
| 457,085 |
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| 415,671 |
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| 10.0 | % |
EBITDA |
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| 613,744 |
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| 541,436 |
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| 13.4 | % |
| 2,212,681 |
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| 2,088,103 |
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| 6.0 | % |
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Total bad debt expenses |
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| 51,042 |
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| 55,664 |
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| 210,120 |
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| 213,586 |
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Earnings per ordinary share |
| $ | 0.82 |
| $ | 0.72 |
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| 14.6 | % | $ | 2.99 |
| $ | 2.75 |
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| 8.5 | % |
Earnings per ordinary ADS |
| $ | 0.82 |
| $ | 0.72 |
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| 14.6 | % | $ | 2.99 |
| $ | 2.75 |
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| 8.5 | % |
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Weighted average number of shares |
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Ordinary shares |
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| 295,122,756 |
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| 293,837,985 |
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| 294,418,795 |
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| 293,233,477 |
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Preference shares |
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| 3,872,911 |
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| 3,809,989 |
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| 3,842,586 |
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| 3,795,248 |
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Percentages of revenue |
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Cost of revenue |
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| 65.1 | % |
| 65.5 | % |
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| 65.9 | % |
| 65.8 | % |
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Gross profit |
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| 34.9 | % |
| 34.5 | % |
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| 34.1 | % |
| 34.2 | % |
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Selling, general and administrative |
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| 17.8 | % |
| 17.9 | % |
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| 17.6 | % |
| 17.7 | % |
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Research and development |
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| 1.0 | % |
| 0.7 | % |
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| 0.8 | % |
| 0.8 | % |
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Operating income (EBIT) |
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| 16.2 | % |
| 15.9 | % |
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| 15.6 | % |
| 15.8 | % |
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Interest expense, net |
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| 2.5 | % |
| 3.1 | % |
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| 2.7 | % |
| 3.2 | % |
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Income before taxes |
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| 13.7 | % |
| 12.8 | % |
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| 12.9 | % |
| 12.6 | % |
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Income tax expense |
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| 4.8 | % |
| 4.4 | % |
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| 4.4 | % |
| 4.5 | % |
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Net income attributable to Noncontrolling interest |
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| 0.8 | % |
| 0.5 | % |
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| 0.7 | % |
| 0.4 | % |
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Net income attributable to FMC AG & Co. KGaA |
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| 8.1 | % |
| 7.9 | % |
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| 7.9 | % |
| 7.7 | % |
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EBITDA |
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| 20.2 | % |
| 19.9 | % |
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| 19.7 | % |
| 19.7 | % |
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1) Due to the adoption of the new accounting rule ASC 810 (US GAAP), tax expenses related to minority interests of partnerships were reclassified to noncontrolling interest. The effect is neutral to net income attributable to FMC AG & Co. KGaA.
The previous year’s periods have been adjusted accordingly.
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Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 10 of 18 |
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Fresenius Medical Care |
| Three Months Ended |
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| Twelve Months Ended |
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(in US-$ million) |
| 2009 |
| 2008 |
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| 2009 |
| 2008 |
| % Change |
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(audited) |
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Net revenue |
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North America |
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| 2,012 |
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| 1,852 |
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| 8.6 | % |
| 7,612 |
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| 7,005 |
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| 8.7 | % |
International |
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| 1,023 |
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| 870 |
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| 17.7 | % |
| 3,635 |
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| 3,607 |
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| 0.8 | % |
Total net revenue |
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| 3,035 |
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| 2,722 |
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| 11.5 | % |
| 11,247 |
|
| 10,612 |
|
| 6.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
| 356 |
|
| 310 |
|
| 14.8 | % |
| 1,250 |
|
| 1,168 |
|
| 7.0 | % |
International |
|
| 180 |
|
| 154 |
|
| 16.7 | % |
| 637 |
|
| 616 |
|
| 3.3 | % |
Corporate |
|
| (45 | ) |
| (31 | ) |
| 42.1 | % |
| (131 | ) |
| (112 | ) |
| 17.1 | % |
Total operating income (EBIT) |
|
| 491 |
|
| 433 |
|
| 13.5 | % |
| 1,756 |
|
| 1,672 |
|
| 5.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income in percentage of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
| 17.7 | % |
| 16.7 | % |
|
|
|
| 16.4 | % |
| 16.7 | % |
|
|
|
International |
|
| 17.6 | % |
| 17.7 | % |
|
|
|
| 17.5 | % |
| 17.1 | % |
|
|
|
Total |
|
| 16.2 | % |
| 15.9 | % |
|
|
|
| 15.6 | % |
| 15.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalents |
|
|
|
|
|
|
|
|
|
|
| 67,988 |
|
| 64,666 |
|
|
|
|
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 11 of 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non US-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
financial measures to the most directly comparable US-GAAP financial measures |
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
(in US-$ million) |
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment information North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
| 2,012 |
|
| 1,852 |
|
|
|
|
|
|
|
Costs of revenue and research and development |
|
| 1,331 |
|
| 1,229 |
|
|
|
|
|
|
|
Selling, general and administrative |
|
| 325 |
|
| 313 |
|
|
|
|
|
|
|
Costs of revenue and operating expenses |
|
| 1,656 |
|
| 1,542 |
|
|
|
|
|
|
|
Operating income (EBIT) |
|
| 356 |
|
| 310 |
|
|
|
|
|
|
|
Percent of revenue |
|
| 17.7 | % |
| 16.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Products revenue incl. and excl. internal sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Products revenue incl. internal sales |
|
| 383 |
|
| 371 |
|
|
|
|
|
|
|
less internal sales |
|
| (170 | ) |
| (151 | ) |
|
|
|
|
|
|
Dialysis Products external sales |
|
| 213 |
|
| 220 |
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Products revenue incl. internal sales |
|
| 678 |
|
| 592 |
|
|
|
|
|
|
|
less internal sales |
|
| (82 | ) |
| (74 | ) |
|
|
|
|
|
|
Dialysis Products external sales |
|
| 596 |
|
| 518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash flow from operating activities to EBITDA 1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA |
|
|
|
|
|
|
|
| 2,213 |
|
| 2,088 |
|
Interest expense, net |
|
|
|
|
|
|
|
| (300 | ) |
| (336 | ) |
Income tax expense |
|
|
|
|
|
|
|
| (491 | ) |
| (476 | ) |
Change in working capital and other non cash items |
|
|
|
|
|
|
|
| (83 | ) |
| (260 | ) |
Net cash provided by operating activities |
|
|
|
|
|
|
|
| 1,339 |
|
| 1,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) last twelve months |
|
|
|
|
|
|
|
| 1,756 |
|
| 1,672 |
|
Depreciation and amortization last twelve months |
|
|
|
|
|
|
|
| 457 |
|
| 416 |
|
Non cash charges |
|
|
|
|
|
|
|
| 50 |
|
| 44 |
|
Annualized EBITDA |
|
|
|
|
|
|
|
| 2,263 |
|
| 2,132 |
|
1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 12 of 18 |
|
|
|
|
|
|
|
|
Fresenius Medical Care |
| December 31, |
| December 31, |
| ||
Balance Sheet |
| (audited) |
| (audited) |
| ||
(in US-$ million) |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
| 4,728 |
|
| 4,212 |
|
Intangible assets |
|
| 8,371 |
|
| 8,156 |
|
Other non-current assets |
|
| 2,722 |
|
| 2,552 |
|
Total assets |
|
| 15,821 |
|
| 14,920 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Current liabilities |
|
| 2,610 |
|
| 3,145 |
|
Long-term liabilities |
|
| 6,181 |
|
| 5,652 |
|
Total equity |
|
| 7,030 |
|
| 6,123 |
|
Total liabilities and equity |
|
| 15,821 |
|
| 14,920 |
|
|
|
|
|
|
|
|
|
Equity/assets ratio: |
|
| 44 | % |
| 41 | % |
|
|
|
|
|
|
|
|
Debt |
|
|
|
|
|
|
|
Short-term borrowings |
|
| 316 |
|
| 684 |
|
Short-term borrowings from related parties |
|
| 10 |
|
| 1 |
|
Current portion of long-term debt and capital lease obligations |
|
| 158 |
|
| 455 |
|
Long-term debt and capital lease obligations, less current portion |
|
| 4,428 |
|
| 3,957 |
|
Trust Preferred Securities |
|
| 656 |
|
| 641 |
|
Total debt |
|
| 5,568 |
|
| 5,738 |
|
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 13 of 18 |
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Cash Flow Statement |
|
|
|
|
| ||
Twelve Months Ended December 31, |
| 2009 |
| 2008 |
| ||
(in US-$ million) |
|
|
|
|
|
|
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
Net income |
|
| 965 |
|
| 860 |
|
Depreciation / amortization |
|
| 457 |
|
| 416 |
|
Change in working capital and other non cash items |
|
| (83 | ) |
| (260 | ) |
Cash Flow from operating activities |
|
| 1,339 |
|
| 1,016 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
| (574 | ) |
| (687 | ) |
Proceeds from sale of property, plant and equipment |
|
| 12 |
|
| 14 |
|
Capital expenditures, net |
|
| (562 | ) |
| (673 | ) |
Free Cash Flow |
|
| 777 |
|
| 343 |
|
|
|
|
|
|
|
|
|
Acquisitions and investments, net of cash acquired and net purchases of intangible assets |
|
| (188 | ) |
| (277 | ) |
Proceeds from divestitures |
|
| 52 |
|
| 59 |
|
Acquisitions, net of divestitures |
|
| (136 | ) |
| (218 | ) |
Free Cash Flow after investing activities |
|
| 641 |
|
| 125 |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Change in accounts receivable securitization program |
|
| (325 | ) |
| 454 |
|
Change in intercompany debt |
|
| (100 | ) |
| (1 | ) |
Change in other debt |
|
| 81 |
|
| 316 |
|
Redemption of Trust Preferred Securities |
|
| — |
|
| (678 | ) |
Proceeds from exercise of stock options |
|
| 72 |
|
| 44 |
|
Distributions to noncontrolling interest |
|
| (68 | ) |
| (39 | ) |
Contributions from noncontrolling interest |
|
| 13 |
|
| — |
|
Dividends paid |
|
| (232 | ) |
| (252 | ) |
Cash Flow from financing activities |
|
| (559 | ) |
| (156 | ) |
|
|
|
|
|
|
|
|
Effects of exchange rates on cash |
|
| (3 | ) |
| 8 |
|
Net increase (decrease) in cash |
|
| 79 |
|
| (23 | ) |
|
|
|
|
|
|
|
|
Cash at beginning of period |
|
| 222 |
|
| 245 |
|
Cash at end of period |
|
| 301 |
|
| 222 |
|
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 14 of 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Performance Scorecard - Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
| 2009 |
| cc |
| 2008 |
| cc |
| ||||
(in US-$ thousands, except per-treatment revenue) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
| 2,011,957 |
|
|
|
|
| 1,852,470 |
|
|
|
|
Growth year-over-year |
|
| 8.6 | % |
|
|
|
| 8.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Care |
|
| 1,799,301 |
|
|
|
|
| 1,632,552 |
|
|
|
|
Growth year-over-year |
|
| 10.2 | % |
|
|
|
| 7.0 | % |
|
|
|
U.S. per treatment |
|
| 357 |
|
|
|
|
| 335 |
|
|
|
|
Per treatment |
|
| 350 |
|
|
|
|
| 330 |
|
|
|
|
Sequential growth |
|
| 2.5 | % |
|
|
|
| 0.5 | % |
|
|
|
Growth year-over-year |
|
| 6.1 | % |
|
|
|
| 2.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
incl. internal sales |
|
| 382,582 |
|
|
|
|
| 371,220 |
|
|
|
|
Growth year-over-year |
|
| 3.1 | % |
|
|
|
| 19.7 | % |
|
|
|
External sales |
|
| 212,656 |
|
|
|
|
| 219,918 |
|
|
|
|
Growth year-over-year |
|
| -3.3 | % |
|
|
|
| 22.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| �� |
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
| 1,023,344 |
|
|
|
|
| 869,430 |
|
|
|
|
Growth year-over-year |
|
| 17.7 | % |
| 8.1 | % |
| 0.7 | % |
| 12.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Care |
|
| 427,158 |
|
|
|
|
| 351,461 |
|
|
|
|
Growth year-over-year |
|
| 21.5 | % |
| 12.5 | % |
| 6.3 | % |
| 18.1 | % |
Per treatment |
|
| 173 |
|
| 160 |
|
| 154 |
|
| 171 |
|
Sequential growth |
|
| 3.5 | % |
|
|
|
| -13.7 | % |
|
|
|
Growth year-over-year |
|
| 12.3 | % |
| 3.9 | % |
| -3.5 | % |
| 7.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
incl. internal sales |
|
| 677,756 |
|
|
|
|
| 592,301 |
|
|
|
|
Growth year-over-year |
|
| 14.4 | % |
| 4.6 | % |
| -2.6 | % |
| 8.7 | % |
External sales |
|
| 596,186 |
|
|
|
|
| 517,969 |
|
|
|
|
Growth year-over-year |
|
| 15.1 | % |
| 5.1 | % |
| -2.8 | % |
| 8.2 | % |
cc = at constant exchange rates
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 15 of 18 |
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Quarterly Performance Scorecard - Dialysis Care Volume |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
| ||
North America |
|
|
|
|
|
|
|
Number of treatments |
|
| 5,116,855 |
|
| 4,924,575 |
|
Treatments per day |
|
| 63,961 |
|
| 61,557 |
|
Per day sequential growth |
|
| -0.2 | % |
| 0.7 | % |
Per day year-over-year growth |
|
| 3.9 | % |
| 3.6 | % |
Same market growth year-over-year |
|
| 3.6 | % |
| 3.0 | % |
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
Number of treatments |
|
| 2,464,586 |
|
| 2,276,487 |
|
Same market growth year-over-year |
|
| 3.7 | % |
| 9.5 | % |
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Quarterly Performance Scorecard - Expenses |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
| ||
North America |
|
|
|
|
|
|
|
Costs of revenue and operating expenses |
|
|
|
|
|
|
|
Percent of revenue |
|
| 82.3 | % |
| 83.3 | % |
Selling, general and administrative |
|
|
|
|
|
|
|
Percent of revenue |
|
| 16.2 | % |
| 16.9 | % |
Bad debt expenses |
|
|
|
|
|
|
|
Percent of revenue |
|
| 2.2 | % |
| 3.1 | % |
Dialysis Care operating expenses/Treatment (in US-$) |
|
| 282 |
|
| 277 |
|
Sequential growth |
|
| -0.2 | % |
| 1.2 | % |
Growth year-over-year |
|
| 1.8 | % |
| 5.5 | % |
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
|
|
Costs of revenue and operating expenses |
|
|
|
|
|
|
|
Percent of revenue |
|
| 83.8 | % |
| 84.1 | % |
Selling, general and administrative |
|
|
|
|
|
|
|
Percent of revenue |
|
| 17.8 | % |
| 17.9 | % |
Effective tax rate |
|
| 34.9 | % |
| 34.3 | % |
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 16 of 18 |
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Quarterly Performance Scorecard - Cash Flow/Investing Activities |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
(in US-$ thousands, except number of de novos) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
|
|
Operating Cash Flow |
|
| 458,132 |
|
| 300,558 |
|
Percent of revenue |
|
| 15.1 | % |
| 11.0 | % |
|
|
|
|
|
|
|
|
Free Cash Flow before acquisitions |
|
| 284,623 |
|
| 119,570 |
|
Percent of revenue |
|
| 9.4 | % |
| 4.4 | % |
|
|
|
|
|
|
|
|
Acquisitions and investments, net of divestitures |
|
| 78,841 |
|
| 87,680 |
|
|
|
|
|
|
|
|
|
Capital expenditures, net |
|
| 173,509 |
|
| 180,988 |
|
Percent of revenue |
|
| 5.7 | % |
| 6.6 | % |
|
|
|
|
|
|
|
|
Maintenance |
|
| 93,637 |
|
| 78,951 |
|
Percent of revenue |
|
| 3.1 | % |
| 2.9 | % |
|
|
|
|
|
|
|
|
Growth |
|
| 79,872 |
|
| 102,037 |
|
Percent of revenue |
|
| 2.6 | % |
| 3.7 | % |
|
|
|
|
|
|
|
|
Number of de novos |
|
| 39 |
|
| 28 |
|
North America |
|
| 29 |
|
| 19 |
|
International |
|
| 10 |
|
| 9 |
|
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Quarterly Performance Scorecard - Balance Sheet |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
|
|
Debt (in US-$million) |
|
| 5,568 |
|
| 5,738 |
|
Debt/EBITDA |
|
| 2.5 |
|
| 2.7 |
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
Days sales outstanding |
|
| 52 |
|
| 60 |
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
Days sales outstanding |
|
| 110 |
|
| 107 |
|
|
|
|
|
|
|
|
|
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 17 of 18 |
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Fresenius Medical Care |
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|
|
|
|
Quarterly Performance Scorecard |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
|
|
North America (U.S.) |
|
|
|
|
|
|
|
Single Pool Kt/v > 1.2 |
|
| 96 | % |
| 95 | % |
Hemoglobin = 10-12g/dl |
|
| 64 | % |
| 61 | % |
Hemoglobin = 10-13g/dl |
|
| 88 | % |
| 85 | % |
Albumin >= 3.5 g/dl 1) |
|
| 83 | % |
| 80 | % |
Phosphate 3.5-5.5mg/dl |
|
| 53 | % |
| 53 | % |
Hospitalization Days per patient 2) |
|
| 10.0 |
|
| 10.5 |
|
(12 months ending December 31) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
|
|
North America (U.S.) |
|
|
|
|
|
|
|
Average age (in years) |
|
| 62 |
|
| 62 |
|
Average time on dialysis (in years) |
|
| 3.6 |
|
| 3.6 |
|
Average body weight (in kg) |
|
| 81 |
|
| 80 |
|
Prevalence of diabetes |
|
| 54 | % |
| 53 | % |
1) International standard BCR CRM470
2) Hospitalization data for 2009 includes legacy RCG facilities
|
|
|
|
|
|
|
|
Fresenius Medical Care |
|
|
|
|
|
|
|
Quarterly Performance Scorecard |
|
|
|
|
|
|
|
| |||||||
Three months ended December 31, |
| 2009 |
| 2008 |
| ||
|
|
|
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
|
|
Europe, Middle East and Africa |
|
|
|
|
|
|
|
Single Pool Kt/v > 1.2 |
|
| 95 | % |
| 94 | % |
Hemoglobin = 10-12g/dl |
|
| 52 | % |
| 50 | % |
Hemoglobin = 10-13g/dl |
|
| 76 | % |
| 75 | % |
Albumin >= 3.5 g/dl 1) |
|
| 88 | % |
| 85 | % |
Phosphate 3.5-5.5mg/dl |
|
| 61 | % |
| 61 | % |
Hospitalization Days per patient |
|
| 8.6 |
|
| 8.1 |
|
(12 months ending December 31) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
|
|
Europe, Middle East and Africa |
|
|
|
|
|
|
|
Average age (in years) |
|
| 64 |
|
| 64 |
|
Average time on dialysis (in years) |
|
| 4.8 |
|
| 4.6 |
|
Average body weight (in kg) |
|
| 70 |
|
| 69 |
|
Prevalence of diabetes |
|
| 28 | % |
| 28 | % |
1) International standard BCR CRM470
|
|
Fresenius Medical Care AG & Co. KGaA, February 24, 2010 | 18 of 18 |