Fresenius Medical Care AG & Co. KGaA (FMS)
Filed: 23 Feb 11, 12:00am
Exhibit 99.1
Contact: | Fresenius Medical Care AG & Co. KGaA | ||
| Oliver Maier | Else-Kröner-Str.1 | ||
| Phone: | + 49 6172 609 2601 | 61352 Bad Homburg | |
| Fax: | + 49 6172 609 2301 | Germany | |
| www.fmc-ag.com | |||
| North America: | |||
| Terry L. Morris | |||
| Phone: | + 1 800 948 2538 | ||
| Fax: | + 1 615 345 5605 | ||
| E-mail: | ir@fmc-ag.com | February 23, 2011 | |
Investor News
Fresenius Medical Care Reports Excellent 4th Quarter and Full
Year Results; Strong Outlook for 2011
Year Results; Strong Outlook for 2011
4th Quarter 2010 Summary:
| Net revenue | $3,167 million | + 4 | % | ||
| Operating income (EBIT) | $539 million | +10 | % | ||
Net income1 | $271 million | +10 | % | ||
| Earnings per share | $0.90 | +9 | % |
Full Year 2010 Summary:
| Net revenue | $12,053 million | +7 | % | ||||
| Operating income (EBIT) | $1,924 million | +10 | % | ||||
Net income1 | $979 million | +10 | % | ||||
| Earnings per share | $3.25 | +9 | % | ||||
| Dividend Proposal | Ordinary share | €0.65 | +7 | % | |||
| Preference share | €0.67 | +6 | % | ||||
1 Net income attributable to Fresenius Medical Care AG & Co. KGaA
Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the company or Fresenius Medical Care; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2010.
4th Quarter 2010:
Revenue
Net revenue for the fourth quarter of 2010 increased by 4% to $3,167 million (+5% at constant currency) compared to the fourth quarter of 2009. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 6% to $2,354 million (+6% at constant currency) in the fourth quarter of 2010. Dialysis product revenue increased from $809 million in the fourth quarter of 2009 to $813 million in the fourth quarter of 2010, which corresponds to 3% growth at constant currency.
North America revenue increased by 3% to $2,072 million. Organic revenue growth was 3%. Dialysis services revenue grew by 3% to $1,862 million. Average revenue per treatment for U.S. clinics decreased to $355 in the fourth quarter of 2010 compared to $357 for the corresponding quarter in 2009. Developments were favorably impacted by reimbursement increases, while this was more than offset by reduced utilization of pharmaceuticals. Dialysis product revenue decreased by 1% to $210 million. The company’s performance was impacted favorably by higher sales of machines and bloodlines. This was mainly offset by changes in the dialysis products mix and lower Medicare average selling prices for the intravenous iron product Venofer®.
International revenue increased by 7% to $1,095 million. Based on constant currency, revenue grew by 10%. Organic revenue growth was 5%. Dialysis services revenue was $492 million, an increase of 15% (+18% at constant currency). Dialysis product revenue increased by 1% to $603 million and increased by 4% at constant currency, led by higher sales of machines and dialyzers.
Earnings
Operating income (EBIT) for the fourth quarter of 2010 increased by 10% to $539 million compared to $491 million in the fourth quarter of 2009. This resulted in an operating margin of 17.0% compared to 16.2% for the corresponding quarter in 2009.
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In North America, the operating margin increased from 17.7% to 17.9%. The margin development benefitted primarily from favorable pharmaceutical costs and personnel expenses, partially offset by a decrease in revenue per treatment.
In the International segment, the operating margin increased from 17.6% to 18.0% mainly due to economies of scale and favorable currency effects, partially offset by lower gross profit margins of acquired clinics.
Net interest expense for the fourth quarter of 2010 was $74 million compared to $75 million in the comparable quarter of 2009. This development was influenced favorably by decreased short-term interest rates.
Income tax expense was $169 million for the fourth quarter of 2010 compared to $145 million in the fourth quarter of 2009, reflecting effective tax rates of 36.3% and 34.9%, respectively.
Net income attributable to FMC AG & Co. KGaA for the fourth quarter of 2010 was $271 million, an increase of 10% compared to the corresponding quarter of 2009.
Earnings per share (EPS) for the fourth quarter of 2010 rose by 9% to $0.90 per ordinary share compared to $0.82 for the fourth quarter of 2009. The weighted average number of shares outstanding for the fourth quarter of 2010 was approximately 302.1 million shares compared to 299.0 million shares for the fourth quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past twelve months.
Cash Flow
In the fourth quarter of 2010, the company generated $341 million in cash from operations, representing approximately 11% of revenue. The cash flow generation was supported by increased earnings.
A total of $168 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $173 million compared to $285 million in the fourth quarter of 2009. A total of $379 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures and excluding short-term investments was minus $206 million compared to $206 million in the fourth quarter of 2009.
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Full Year 2010:
Revenue and Earnings
Net revenue for the full year 2010 was $12,053 million, up 7% from the full year 2009. At constant currency, net revenue also rose 7%. Organic growth was 6% in 2010.
Operating income (EBIT) for the full year 2010 increased by 10% to $1,924 million compared to $1,756 million in 2009. This resulted in an operating margin of 16.0% compared to 15.6% for 2009.
Net interest expense for the full year 2010 was $280 million compared to $300 million in the corresponding period of 2009.
Income tax expense was $578 million in the full year 2010 compared to $491 million in 2009. These reflect effective tax rates of 35.2% and 33.7%, respectively.
For the full year 2010, net income attributable to FMC AG & Co. KGaA was $979 million, up 10% from 2009.
In the full year 2010, earnings per ordinary share rose 9% to $3.25. The weighted average number of shares outstanding during the full year 2010 was approximately 300.7 million.
Cash Flow
Cash from operations during 2010 was $1,368 million compared to $1,339 million for 2009, representing approximately 11% of revenue.
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A total of $507 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the full year 2010 was $861 million compared to $777 million in 2009. A total of $618 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures and excluding short-term investments was $243 million compared to $591 million in 2009.
Please refer to the attachments for a complete overview on the fourth quarter and the full year of 2010 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
Patients – Clinics – Treatments
As of Dec. 31, 2010, Fresenius Medical Care treated 214,648 patients worldwide, which represents a 10% increase compared to the previous year. North America provided dialysis treatments for 137,689 patients, an increase of 4%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 139,327. The International segment served 76,959 patients, an increase of 21% over the prior year.
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As of Dec. 31, 2010, the company operated a total of 2,757 clinics worldwide, which represents an 8% increase compared to the previous year’s figure. The number of clinics is comprised of 1,823 clinics in North America (1,853 including managed clinics) and 934 clinics in the International segment, representing an increase of 2% and 21%, respectively.
During the year 2010, Fresenius Medical Care delivered approximately 31.67 million dialysis treatments worldwide. This represents an increase of 8% compared to last year. North America accounted for 20.85 million treatments, an increase of 5%; the International segment delivered 10.82 million treatments, an increase of 13%.
Employees
As of Dec. 31, 2010, Fresenius Medical Care had 73,452 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of more than 5,400 employees is due to overall growth in the company’s business and acquisitions.
Dividend
The company will continue to follow an earnings-driven dividend policy. For the 14th consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2010. At the Annual General Meeting to be held on May 12, 2011, shareholders will be asked to approve a dividend of €0.65 per ordinary share, an increase of 7% from 2009 (€0.61).
Debt/EBITDA Ratio
The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.46 at the end of 2009 to 2.38 at the end of 2010.
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Rating
Standard & Poor’s Rating Services continued to rate the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's continued to rate the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch continued to rate the company’s corporate credit as ‘BB’ with a ‘positive’ 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
In January 2011 Fresenius Medical Care issued $-denominated and €-denominated senior unsecured notes in the principal amounts of $650 million and €300 million, respectively, both due 2021. The coupon for the $ senior notes is 5.75%, while the coupon for the € senior notes is 5.25%. Net proceeds amounting to approximately $1,035 million from the offering will be used to repay indebtness, for acquisitions including the company’s recently announced acquisition of Euromedic’s dialysis service business and for general corporate purposes to support the renal products and services business.
Contract for comprehensive dialysis care reimbursement in Spain
On Jan. 19, 2011, Fresenius Medical Care announced a cooperation agreement with the public health authorities in the Murcia region of Spain for the country’s first comprehensive dialysis care and performance-oriented reimbursement model. Under this agreement, Fresenius Medical Care will provide dialysis therapy to approximately 200 renal patients in the region. The contract will be effective from mid-2011. The reimbursement will be converted from a “fee-for-service” basis to an all-inclusive “bundled” rate that is tied to Fresenius Medical Care’s quality performance.
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Acquisition of dialysis service business from Euromedic
On Jan. 4, 2011, Fresenius Medical Care announced the signing of a purchase agreement to acquire International Dialysis Centers (IDC), Euromedic’s dialysis service business. Fresenius Medical Care thus is expanding its activities in the dialysis care market, especially in Eastern Europe, where IDC treats over 8,200 hemodialysis patients. The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the second quarter of 2011. On completion, the acquired operations will add approximately $180 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. The purchase price is €485 million.
Acquisition of Gambro’s Peritoneal Dialysis Business Completed
On Dec. 27, 2010, Fresenius Medical Care announced the closing of its acquisition of Gambro’s worldwide peritoneal dialysis (PD) business that marked the successful completion of regulatory approvals by the relevant antitrust authorities, except Serbia where it is still pending. Fresenius Medical Care took advantage of Gambro’s decision to prioritize its investments in the hemodialysis field to expand the activities in the homecare market, especially in Europe and Asia-Pacific.
Formation of renal pharmaceutical company
On Dec. 1, 2010, Fresenius Medical Care and the Swiss-based company Galenica announced the formation of a new renal pharmaceutical company named Vifor Fresenius Medical Care Renal Pharma Ltd. It is designed to develop and distribute on a worldwide basis products to treat iron deficiency anaemia and bone mineral metabolism for pre-dialysis and dialysis patients. The products will include Venofer® and Ferinject® (Injectafer®, the brand name for Ferinject® in the USA) within the field of dialysis and pre-dial ysis (CKD stage III – V) as well as PA21, a novel iron-based phosphate binder. This investment allows Fresenius Medical Care to take the next major implementation step in its renal pharmaceutical strategy. Fresenius Medical Care will hold a 45% share in the new company. The transaction is subject to final antitrust approval in certain regions.
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Outlook for 2011
For the year 2011, the company expects revenue to grow to between $12.8 billion and $13.0 billion, corresponding to a growth rate of 6% to 8%.
Net income attributable to FMC AG & Co. KGaA is expected to be between $1.035 billion and $1.055 billion, with operating margins forecast to increase by approximately 20 basis points.
For 2011, the company expects to spend around 5% of revenue on capital expenditures and approximately $1.2 billion on acquisitions. The debt/EBITDA ratio is expected to be below 2.8 by the end of 2011.
“We are very pleased to report excellent financial results for the fourth quarter and full year of 2010,” said Ben Lipps, chief executive officer of Fresenius Medical Care. “With this performance, we have achieved the top end of our improved earnings guidance for 2010. In 2011, we will remain focused on our strategy to continuously improve our quality performance and operating efficiency, while maintaining vigilance regarding local health care trends. One of the trends gaining momentum around the world is the need for integrated care solutions under comprehensive payment concepts in dialysis, with the aim of reducing total health care costs while improving patient care outcomes. As a vertically integrated company, offering products and services for the entire dialysis value chain, and due to our lo ngstanding expertise regarding clinical quality data management, we are in a unique position to meet the rising demand that such holistic therapy offers. The experience we gather in different countries by partnering with public health care providers is an asset from which we have also benefitted in the first phase of the new bundled reimbursement system in the United States. We are confident that we can meet the challenges as we look ahead.”
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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 2010 on Wednesday, Feb. 23, 2011, at 3:15 p.m. CET / 9:15 a.m. EDT. 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.
About Fresenius Medical Care
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 1.89 million individuals worldwide. Through its network of 2,757 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 214,648 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.
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.
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| Fresenius Medical Care | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| Statement of Earnings | December 31, | December 31, | ||||||||||||||||||||||
| (in US-$ thousands, except share data) | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||
| (audited) | ||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||
| Dialysis Care | 2,354,266 | 2,226,459 | 5.7 | % | 9,070,546 | 8,350,233 | 8.6 | % | ||||||||||||||||
| Dialysis Products | 812,791 | 808,970 | 0.5 | % | 2,982,944 | 2,897,244 | 3.0 | % | ||||||||||||||||
| Total net revenue | 3,167,057 | 3,035,429 | 4.3 | % | 12,053,490 | 11,247,477 | 7.2 | % | ||||||||||||||||
| Costs of revenue | 2,052,714 | 1,976,435 | 3.9 | % | 7,908,769 | 7,415,965 | 6.6 | % | ||||||||||||||||
| Gross profit | 1,114,343 | 1,058,994 | 5.2 | % | 4,144,721 | 3,831,512 | 8.2 | % | ||||||||||||||||
| Selling, general and administrative | 546,256 | 538,900 | 1.4 | % | 2,124,384 | 1,982,106 | 7.2 | % | ||||||||||||||||
| Research and development | 29,276 | 29,302 | (0.1 | )% | 96,532 | 93,810 | 2.9 | % | ||||||||||||||||
| Operating income (EBIT) | 538,811 | 490,792 | 9.8 | % | 1,923,805 | 1,755,596 | 9.6 | % | ||||||||||||||||
| Interest income | (6,607 | ) | (4,600 | ) | 43.6 | % | (25,409 | ) | (21,397 | ) | 18.8 | % | ||||||||||||
| Interest expense | 80,655 | 79,894 | 1.0 | % | 305,473 | 321,360 | (4.9 | )% | ||||||||||||||||
| Interest expense, net | 74,048 | 75,294 | (1.7 | )% | 280,064 | 299,963 | (6.6 | )% | ||||||||||||||||
| Income before taxes | 464,763 | 415,498 | 11.9 | % | 1,643,741 | 1,455,633 | 12.9 | % | ||||||||||||||||
| Income tax expense | 168,838 | 144,977 | 16.5 | % | 578,345 | 490,413 | 17.9 | % | ||||||||||||||||
| Net income | 295,925 | 270,521 | 9.4 | % | 1,065,396 | 965,220 | 10.4 | % | ||||||||||||||||
| Less: Net income attributable to Noncontrolling interests | 24,581 | 23,902 | 2.8 | % | 86,879 | 74,082 | 17.3 | % | ||||||||||||||||
| Net income attributable to FMC AG & Co. KGaA | 271,344 | 246,619 | 10.0 | % | 978,517 | 891,138 | 9.8 | % | ||||||||||||||||
| Operating income (EBIT) | 538,811 | 490,792 | 9.8 | % | 1,923,805 | 1,755,596 | 9.6 | % | ||||||||||||||||
| Depreciation and amortization | 133,900 | 122,952 | 8.9 | % | 503,224 | 457,085 | 10.1 | % | ||||||||||||||||
| EBITDA | 672,711 | 613,744 | 9.6 | % | 2,427,029 | 2,212,681 | 9.7 | % | ||||||||||||||||
| Total bad debt expenses | 53,441 | 51,042 | 218,478 | 210,120 | ||||||||||||||||||||
| Earnings per ordinary share | $ | 0.90 | $ | 0.82 | 8.9 | % | $ | 3.25 | $ | 2.99 | 8.9 | % | ||||||||||||
| Earnings per ordinary ADS | $ | 0.90 | $ | 0.82 | 8.9 | % | $ | 3.25 | $ | 2.99 | 8.9 | % | ||||||||||||
| Weighted average number of shares | ||||||||||||||||||||||||
| Ordinary shares | 298,109,602 | 295,122,756 | 296,808,978 | 294,418,795 | ||||||||||||||||||||
| Preference shares | 3,945,649 | 3,872,911 | 3,912,348 | 3,842,586 | ||||||||||||||||||||
| In percent of revenue | ||||||||||||||||||||||||
| Costs of revenue | 64.8 | % | 65.1 | % | 65.6 | % | 65.9 | % | ||||||||||||||||
| Gross profit | 35.2 | % | 34.9 | % | 34.4 | % | 34.1 | % | ||||||||||||||||
| Selling, general and administrative | 17.2 | % | 17.8 | % | 17.6 | % | 17.6 | % | ||||||||||||||||
| Research and development | 0.9 | % | 1.0 | % | 0.8 | % | 0.8 | % | ||||||||||||||||
| Operating income (EBIT) | 17.0 | % | 16.2 | % | 16.0 | % | 15.6 | % | ||||||||||||||||
| Interest expense, net | 2.3 | % | 2.5 | % | 2.3 | % | 2.7 | % | ||||||||||||||||
| Income before taxes | 14.7 | % | 13.7 | % | 13.6 | % | 12.9 | % | ||||||||||||||||
| Income tax expense | 5.3 | % | 4.8 | % | 4.8 | % | 4.4 | % | ||||||||||||||||
| Net income attributable to Noncontrolling interests | 0.8 | % | 0.8 | % | 0.7 | % | 0.7 | % | ||||||||||||||||
| Net income attributable to FMC AG & Co. KGaA | 8.6 | % | 8.1 | % | 8.1 | % | 7.9 | % | ||||||||||||||||
| EBITDA | 21.2 | % | 20.2 | % | 20.1 | % | 19.7 | % | ||||||||||||||||
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| Fresenius Medical Care | Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Segment and Other Information | December 31, | December 31, | ||||||||||||||||
| (in US-$ million) | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||
| (audited) | ||||||||||||||||||
| Net revenue | ||||||||||||||||||
| North America | 2,072 | 2,012 | 3.0 | % | 8,130 | 7,612 | 6.8 | % | ||||||||||
| International | 1,095 | 1,023 | 7.0 | % | 3,923 | 3,635 | 7.9 | % | ||||||||||
| Total net revenue | 3,167 | 3,035 | 4.3 | % | 12,053 | 11,247 | 7.2 | % | ||||||||||
| Operating income (EBIT) | ||||||||||||||||||
| North America | 372 | 356 | 4.5 | % | 1,386 | 1,250 | 10.9 | % | ||||||||||
| International | 197 | 180 | 9.8 | % | 678 | 637 | 6.4 | % | ||||||||||
| Corporate | (30 | ) | (45 | ) | (32.5 | )% | (140 | ) | (131 | ) | 6.6 | % | ||||||
| Total operating income (EBIT) | 539 | 491 | 9.8 | % | 1,924 | 1,756 | 9.6 | % | ||||||||||
| Operating income in percentage of revenue | ||||||||||||||||||
| North America | 17.9 | % | 17.7 | % | 17.0 | % | 16.4 | % | ||||||||||
| International | 18.0 | % | 17.6 | % | 17.3 | % | 17.5 | % | ||||||||||
| Total | 17.0 | % | 16.2 | % | 16.0 | % | 15.6 | % | ||||||||||
| Employees | ||||||||||||||||||
| Full-time equivalents | 73,452 | 67,988 | ||||||||||||||||
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| Fresenius Medical Care | ||||||||||||
| Reconciliation of non US-GAAP | ||||||||||||
| financial measures to the most directly | Three Months Ended | Twelve Months Ended | ||||||||||
| comparable US-GAAP financial measures | December 31, | December 31, | ||||||||||
| (in US-$ million) | 2010 | 2009 | 2010 | 2009 | ||||||||
| (audited) | ||||||||||||
| Segment information North America | ||||||||||||
| Net revenue | 2,072 | 2,012 | ||||||||||
| Costs of revenue and research and development | 1,352 | 1,331 | ||||||||||
| Selling, general and administrative | 348 | 325 | ||||||||||
| Costs of revenue and operating expenses | 1,700 | 1,656 | ||||||||||
| Operating income (EBIT) | 372 | 356 | ||||||||||
| In percent of revenue | 17.9 | % | 17.7 | % | ||||||||
| Dialysis Products revenue incl. and excl. internal sales | ||||||||||||
| North America | ||||||||||||
| Dialysis Products revenue incl. internal sales | 399 | 383 | ||||||||||
| less internal sales | (189 | ) | (170 | ) | ||||||||
| Dialysis Products external sales | 210 | 213 | ||||||||||
| International | ||||||||||||
| Dialysis Products revenue incl. internal sales | 718 | 693 | ||||||||||
| less internal sales | (115 | ) | (97 | ) | ||||||||
| Dialysis Products external sales | 603 | 596 | ||||||||||
| Reconciliation of cash flow from operating activities to EBITDA 1) | ||||||||||||
| Total EBITDA | 2,427 | 2,213 | ||||||||||
| Interest expense, net | (280 | ) | (300 | ) | ||||||||
| Income tax expense | (578 | ) | (491 | ) | ||||||||
| Change in working capital and other non-cash items | (201 | ) | (83 | ) | ||||||||
| Net cash provided by operating activities | 1,368 | 1,339 | ||||||||||
| Annualized EBITDA | ||||||||||||
| Operating income (EBIT) last twelve months | 1,924 | 1,756 | ||||||||||
| Depreciation and amortization last twelve months | 503 | 457 | ||||||||||
| Non-cash charges | 45 | 50 | ||||||||||
| Annualized EBITDA | 2,472 | 2,263 | ||||||||||
1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.
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| Fresenius Medical Care | December 31, | December 31, | ||||
| Balance Sheet | 2010 | 2009 | ||||
| (in US-$ million) | (audited) | (audited) | ||||
| Assets | ||||||
| Current assets | 5,153 | 4,728 | ||||
| Intangible assets | 8,833 | 8,371 | ||||
| Other non-current assets | 3,109 | 2,722 | ||||
| Total assets | 17,095 | 15,821 | ||||
| Liabilities and equity | ||||||
| Current liabilities | 3,790 | 2,610 | ||||
| Long-term liabilities | 5,501 | 6,181 | ||||
| Noncontrolling interest subject to put provisions | 280 | 231 | ||||
| Total equity | 7,524 | 6,799 | ||||
| Total liabilities and equity | 17,095 | 15,821 | ||||
| Equity/assets ratio: | 44 | % | 43 | % | ||
| Debt | ||||||
| Short-term borrowings | 671 | 316 | ||||
| Short-term borrowings from related parties | 10 | 10 | ||||
| Current portion of long-term debt and capital lease obligations | 264 | 158 | ||||
| Long-term debt and capital lease obligations, less current portion | 4,310 | 4,428 | ||||
| Trust Preferred Securities | 625 | 656 | ||||
| Total debt | 5,880 | 5,568 | ||||
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| Fresenius Medical Care | ||||||
| Cash Flow Statement | ||||||
| Twelve Months Ended December 31, | 2010 | 2009 | ||||
| (in US-$ million) | ||||||
| (audited) | ||||||
| Operating activities | ||||||
| Net income | 1,066 | 965 | ||||
| Depreciation / amortization | 503 | 457 | ||||
| Change in working capital and other non cash items | (201 | ) | (83 | ) | ||
| Cash Flow from operating activities | 1,368 | 1,339 | ||||
| Investing activities | ||||||
| Purchases of property, plant and equipment | (523 | ) | (574 | ) | ||
| Proceeds from sale of property, plant and equipment | 16 | 12 | ||||
| Capital expenditures, net | (507 | ) | (562 | ) | ||
| Free Cash Flow | 861 | 777 | ||||
| Acquisitions and investments, net of cash acquired and net purchases of intangible assets | (764 | ) | (188 | ) | ||
| Proceeds from divestitures | 146 | 52 | ||||
| Acquisitions, net of divestitures* | (618 | ) | (136 | ) | ||
| Free Cash Flow after investing activities* | 243 | 641 | ||||
| Financing activities | ||||||
| Change in accounts receivable securitization program | 296 | (325 | ) | |||
| Change in intercompany debt | — | (100 | ) | |||
| Change in other debt | (103 | ) | 81 | |||
| Proceeds from exercise of stock options | 110 | 72 | ||||
| Distributions to noncontrolling interest | (112 | ) | (68 | ) | ||
| Contributions from noncontrolling interest | 26 | 13 | ||||
| Dividends paid | (232 | ) | (232 | ) | ||
| Cash Flow from financing activities | (15 | ) | (559 | ) | ||
| Effects of exchange rates on cash | (6 | ) | (3 | ) | ||
| Net increase (decrease) in cash | 222 | 79 | ||||
| Cash at beginning of period | 301 | 222 | ||||
| Cash at end of period | 523 | 301 | ||||
* Including proceeds of short-term investments of $50 million in 2009
| Fresenius Medical Care AG & Co. KGaA, February 23, 2011 | 15 of 19 |
| Fresenius Medical Care | ||||||||||||
| Quarterly Performance Scorecard - Revenue | ||||||||||||
| Three months ended December 31, | 2010 | cc | 2009 | cc | ||||||||
| (in US-$ thousands, except per-treatment revenue) | ||||||||||||
| audited | ||||||||||||
| North America | ||||||||||||
| Net revenue | 2,072,009 | 2,011,957 | ||||||||||
| Growth year-over-year | 3.0 | % | 8.6 | % | ||||||||
| Dialysis Care | 1,862,173 | 1,799,301 | ||||||||||
| Growth year-over-year | 3.5 | % | 10.2 | % | ||||||||
| U.S. per treatment | 355 | 357 | ||||||||||
| Per treatment | 347 | 350 | ||||||||||
| Sequential growth | (1.2 | )% | 2.5 | % | ||||||||
| Growth year-over-year | (0.9 | )% | 6.1 | % | ||||||||
| Dialysis Products | ||||||||||||
| incl. internal sales | 399,472 | 382,582 | ||||||||||
| Growth year-over-year | 4.4 | % | 3.1 | % | ||||||||
| External sales | 209,836 | 212,656 | ||||||||||
| Growth year-over-year | (1.3 | )% | (3.3 | )% | ||||||||
| International | ||||||||||||
| Net revenue | 1,094,985 | 1,023,344 | ||||||||||
| Growth year-over-year | 7.0 | % | 10.1 | % | 17.7 | % | 8.1 | % | ||||
| Dialysis Care | 492,093 | 427,158 | ||||||||||
| Growth year-over-year | 15.2 | % | 18.3 | % | 21.5 | % | 12.5 | % | ||||
| Per treatment | 169 | 173 | 173 | 160 | ||||||||
| Sequential growth | 5.6 | % | 3.5 | % | ||||||||
| Growth year-over-year | (2.7 | )% | 0.0 | % | 12.3 | % | 3.9 | % | ||||
| Dialysis Products | ||||||||||||
| incl. internal sales | 717,944 | 692,582 | ||||||||||
| Growth year-over-year | 3.7 | % | 6.7 | % | 14.9 | % | 5.0 | % | ||||
| External sales | 602,892 | 596,186 | ||||||||||
| Growth year-over-year | 1.1 | % | 4.2 | % | 15.1 | % | 5.1 | % | ||||
cc = at constant exchange rates
| Fresenius Medical Care AG & Co. KGaA, February 23, 2011 | 16 of 19 |
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard - Dialysis Care Volume | ||||||
| Three months ended December 31, | 2010 | 2009 | ||||
| audited | ||||||
| North America | ||||||
| Number of treatments | 5,345,132 | 5,116,855 | ||||
| Treatments per day | 67,660 | 64,770 | ||||
| Per day sequential growth | 1.2 | % | (0.2 | )% | ||
| Per day year-over-year growth | 4.5 | % | 3.9 | % | ||
| Same market growth year-over-year | 4.4 | % | 3.6 | % | ||
| International | ||||||
| Number of treatments | 2,917,872 | 2,464,586 | ||||
| Same market growth year-over-year | 6.2 | % | 3.7 | % | ||
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard - Expenses | ||||||
| Three months ended December 31, | 2010 | 2009 | ||||
| audited | ||||||
| North America | ||||||
| Costs of revenue and operating expenses | ||||||
| In percent of revenue | 82.1 | % | 82.3 | % | ||
Selling, general and administrative | ||||||
| In percent of revenue | 16.8 | % | 16.2 | % | ||
| Bad debt expenses | ||||||
| In percent of revenue | 2.5 | % | 2.2 | % | ||
| Dialysis Care operating expenses/treatment (in US-$) | 281 | 282 | ||||
| Sequential growth | (0.9 | )% | (0.2 | )% | ||
| Growth year-over-year | (0.3 | )% | 1.8 | % | ||
| Total Group | ||||||
| Costs of revenue and operating expenses | ||||||
| In percent of revenue | 83.0 | % | 83.8 | % | ||
Selling, general and administrative | ||||||
| In percent of revenue | 17.2 | % | 17.8 | % | ||
| Effective tax rate | 36.3 | % | 34.9 | % | ||
| Fresenius Medical Care AG & Co. KGaA, February 23, 2011 | 17 of 19 |
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard - Cash Flow/Investing Activities | ||||||
| Three months ended December 31, | 2010 | 2009 | ||||
| (in US-$ thousands, except number of de novos) | ||||||
| audited | ||||||
| Total Group | ||||||
| Operating Cash Flow | 340,991 | 458,132 | ||||
| In percent of revenue | 10.8 | % | 15.1 | % | ||
| Free Cash Flow before acquisitions | 172,936 | 284,623 | ||||
| In percent of revenue | 5.5 | % | 9.4 | % | ||
| Acquisitions, net of divestitures | 379,439 | 78,841 | ||||
| Repayments of short-term investments, net | (131,490 | ) | 0 | |||
| Capital expenditures, net | 168,055 | 173,509 | ||||
| In percent of revenue | 5.3 | % | 5.7 | % | ||
| Maintenance | 89,640 | 93,637 | ||||
| In percent of revenue | 2.8 | % | 3.1 | % | ||
| Growth | 78,415 | 79,872 | ||||
| In percent of revenue | 2.5 | % | 2.6 | % | ||
| Number of de novos | 18 | 39 | ||||
| North America | 11 | 29 | ||||
| International | 7 | 10 | ||||
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard - Balance Sheet | ||||||
| December 31, | 2010 | 2009 | ||||
| audited | ||||||
| Total Group | ||||||
| Debt (in US-$ million) | 5,880 | 5,568 | ||||
| Debt/EBITDA | 2.4 | 2.5 | ||||
| North America | ||||||
| Days sales outstanding | 54 | 52 | ||||
| International | ||||||
| Days sales outstanding | 116 | 110 | ||||
| Fresenius Medical Care AG & Co. KGaA, February 23, 2011 | 18 of 19 |
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard | ||||||
| Three months ended December 31, | 2010 | 2009 | ||||
| Clinical Performance | ||||||
| North America (U.S.) | ||||||
| Single Pool Kt/v > 1.2 | 97 | % | 96 | % | ||
| Hemoglobin = 10-12g/dl | 71 | % | 64 | % | ||
| Hemoglobin = 10-13g/dl | 89 | % | 88 | % | ||
| Hemoglobin < 10 g/dl | 7 | % | 7.3 | % | ||
Albumin >= 3.5 g/dl 1) | 84 | % | 83 | % | ||
| No catheter | 76 | % | 73 | % | ||
| Phosphate = 3.5-5.5mg/dl | 57 | % | 55 | % | ||
Hospitalization Days per patient 2) (12 months ending December 31) | 9.9 | 10.0 | ||||
| Demographics | ||||||
| North America (U.S.) | ||||||
| Average age (in years) | 62 | 62 | ||||
| Average time on dialysis (in years) | 3.7 | 3.6 | ||||
| Average body weight (in kg) | 81 | 81 | ||||
| Prevalence of diabetes | 55 | % | 54 | % | ||
1) International standard BCR CRM470
| Fresenius Medical Care | ||||||
| Quarterly Performance Scorecard | ||||||
| Three months ended December 31, | 2010 | 2009 | ||||
| Clinical Performance | ||||||
| Europe, Middle East and Africa | ||||||
Single Pool Kt/v > 1.2 | 95 | % | 95 | % | ||
| Hemoglobin = 10-12g/dl | 54 | % | 52 | % | ||
| Hemoglobin = 10-13g/dl | 77 | % | 77 | % | ||
| Hemoglobin < 10 g/dl | 12 | % | 11 | % | ||
Albumin >= 3.5 g/dl 1) | 86 | % | 86 | % | ||
| No catheter | 82 | % | 83 | % | ||
| Phosphate = 3.5-5.5mg/dl | 59 | % | 61 | % | ||
Hospitalization Days per patient (12 months ending December 31) | 9.7 | 8.6 | ||||
| Demographics | ||||||
| Europe, Middle East and Africa | ||||||
| Average age (in years) | 64 | 64 | ||||
| Average time on dialysis (in years) | 5.0 | 4.7 | ||||
| Average body weight (in kg) | 70 | 70 | ||||
| Prevalence of diabetes | 28 | % | 28 | % | ||
1) International standard BCR CRM470
| Fresenius Medical Care AG & Co. KGaA, February 23, 2011 | 19 of 19 |