Exhibit 99.1
Investor News | Oliver Maier |
| Head of Investor Relations |
|
|
| Fresenius Medical Care |
| Else-Kröner-Straße 1 |
| 61352 Bad Homburg |
| Germany |
| T +49 6172 609-2601 |
| F +49 6172 609-2301 |
| oliver.maier@fmc-ag.com |
| www.fmc-ag.com |
|
|
February 26, 2013 |
|
Fresenius Medical Care Reports Strong Fourth Quarter And Full Year 2012 Results In Line With Guidance
Full Year 2012 Summary:
Reported |
|
|
|
|
Net Revenue |
| $13,800 million | +10 | % |
Operating income (EBIT) |
| $2,219 million | +7 | % |
Net income(1) |
| $1,187 million | +11 | % |
Earnings per ordinary share |
| $3.89 | +10 | % |
|
|
|
|
|
Adjusted(2) |
|
|
|
|
Operating income (EBIT) |
| $2,329 million | +12 | % |
Net income(1) |
| $1,118 million | +4 | % |
Earnings per ordinary share |
| $3.66 | +4 | % |
|
|
|
|
|
Dividend proposal |
|
|
|
|
Ordinary Share |
| €0.75 | +9 | % |
Preference Share |
| €0.77 | +8 | % |
(1)Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
(2)Fresenius Medical Care´s net income guidance for 2012 was based on adjusted numbers. For further details see page 10 and 11.
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 2012.
4th Quarter of 2012
Revenue
Net revenue for the fourth quarter of 2012 increased by 13% to $3,706 million (+14% at constant currency) compared to the fourth quarter of 2011. Organic revenue growth worldwide was 8%. Dialysis services revenue grew by 18% to $2,804 million (+19% at constant currency) and dialysis product revenue increased by 2% to $902 million and increased by 4% at constant currency.
North America revenue for the fourth quarter of 2012 increased by 19% to $2,429 million. Dialysis services revenue grew by 22% to $2,222 million with a same store growth of 4%. Average revenue per treatment for U.S. services increased to $368 in the fourth quarter of 2012 compared to $351 for the corresponding quarter in 2011. Dialysis product revenue decreased by 3% to $207 million.
International revenue increased by 4% to $1,270 million and increased by 6% at constant currency. Organic revenue growth was 6%. Dialysis services revenue increased by 5% to $582 million and increased by 8% at constant currency. Dialysis product revenue increased by 3% to $688 million and increased by 5% at constant currency.
Earnings
Operating income (EBIT) for the fourth quarter of 2012 decreased by 5% to $559 million compared to $587 million in the fourth quarter of 2011. The operating income includes charges in the amount of $110 million related to the amendment of the agreement for our iron product Venofer in North America and a donation to the American Society of Nephrology. Excluding those charges the operating income for the fourth quarter increased by 14% to $ 669 million, translating into an
operating margin of 18.1% for the fourth quarter of 2012 as compared to 18.0% for the corresponding quarter in 2011.
Excluding the above mentioned charges, the operating margin for North America increased from 19.6% to 21.2%. Average costs per treatment for U.S. services increased to $286 in the fourth quarter of 2012 as compared to $279 in the fourth quarter of 2011. In the International segment, the operating margin decreased from 18.7% to 16.7%.
Net interest expense for the fourth quarter of 2012 was $115 million, compared to $82 million in the fourth quarter of 2011. This development was mainly attributable to the higher level of indebtedness as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012 to finance dialysis clinic acquisitions.
Income tax expense was $143 million for the fourth quarter of 2012 compared to $165 million in the fourth quarter of 2011, reflecting effective tax rates of 32.1% and 32.7%, respectively.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2012 was $257 million, a decrease of 17% compared to the corresponding quarter of 2011. Excluding after tax charges in the amount of $71 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter was $327 million, an increase of 5%.
Earnings per ordinary share (EPS) for the fourth quarter of 2012 was $0.84 compared to $1.02 for the fourth quarter of 2011. The weighted average number of shares outstanding for the fourth quarter of 2012 was approximately 306.4 million shares, compared to 303.9 million shares for the fourth quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months. Excluding the above mentioned charges earnings per ordinary share for the fourth quarter 2012 was $1.07.
Cash flow
In the fourth quarter of 2012, the company generated $572 million in cash from operations, an increase of 15% compared to the corresponding figure last year and representing 15.4% of revenue. The cash flow generation was mainly supported by the favorable development of working capital items.
A total of $227 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $345 million (representing 9.3% of revenue) compared to $306 million in the fourth quarter of 2011. A total of $59 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $286 million, compared to minus $298 million in the fourth quarter of 2011.
Full Year 2012
Revenue and Earnings
Net revenue for the full year 2012 increased by 10% to $13,800 million (+12% at constant currency) compared to the full year 2011. Organic revenue growth worldwide was 5%.
Operating income (EBIT) for the full year 2012 increased by 7% to $2,219 million compared to $2,075 million for the full year 2011. The operating income includes charges in the amount of $110 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology. Excluding those charges the operating income for the full year 2012 increased by 12% to $2,329 million, translating into an operating margin of 16.9% as compared to 16.5% for the full year 2011.
Net interest expense for the full year 2012 was $426 million compared to $297 million in the same period of 2011.
For the full year 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 11% to $1,187 million. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings,
Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. It also includes after tax charges in the amount of $71 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology. Excluding the investment gain and the before mentioned charges net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,118 million, an increase of 4% compared to 2011.
Income tax expense for the full year 2012 was $605 million compared to $601 million in the same period in 2011, reflecting effective tax rates of 31.3% and 33.8%, respectively.
In the full year 2012, earnings per ordinary share rose by 10% to $3.89. The weighted average number of shares outstanding during the full year 2012 was approximately 305.1 million compared to 303.0 million shares for the full year 2011. Excluding the investment gain and the above mentioned charges earnings per ordinary share was $3.66.
Cash Flow
For the full year 2012, the company generated $2,039 million in cash from operations, an increase of 41% compared to the corresponding figure last year and representing 14.8% of revenue.
A total of $666 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the full year 2012 was $1,373 million compared to $876 million in the same period in 2011. A total of $1,615 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $242 million compared to minus $899 million in the last year.
Please refer to the attachments for a complete overview on the fourth quarter and the full year 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.
Patients – Clinics – Treatments
As of December 31, 2012, Fresenius Medical Care treated 257,916 patients worldwide, which represents an increase of 11% compared to the previous year’s figure. North America provided dialysis treatments for 164,554 patients, an increase of 16%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 166,920. The International segment provided dialysis treatment to 93,362 patients, an increase of 3% over the prior year’s figure.
As of December 31, 2012, the company operated a total of 3,160 clinics worldwide, which represents an increase of 9% compared to the previous year’s figure. The number of clinics is comprised of 2,082 clinics in North America (2,114 including managed clinics), and 1,078 clinics in the International segment, representing an increase of 13% and 2%, respectively.
During the full year 2012, Fresenius Medical Care delivered approximately 38.6 million dialysis treatments worldwide. This represents an increase of 12% compared to the previous year’s figure. North America accounted for 24.4 million treatments, an increase of 13%. The International segment delivered 14.2 million treatments, an increase of 11%.
Employees
As of December 31, 2012, Fresenius Medical Care had 86,153 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of approximately 7,000 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.
Dividend
The company intends to continue its earnings-driven policy. At the Annual General Meeting to be held on May 16, 2013, shareholders will be asked to approve a dividend of €0.75 per ordinary share, an increase of 9% from 2011 (€0.69). For the 16th consecutive year, shareholders can expect to receive an increased annual dividend.
Debt/EBITDA ratio
The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.69 at the end of 2011 to 2.83 at the end of 2012. The debt/EBITDA ratio at the end of the third quarter 2012 was 2.81.
Rating
Both Standard & Poor’s and Fitch rate the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. Moody’s rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations/ Credit Relations.
Outlook for 2013
For the year 2013 the company expects revenue to grow to more than $14.6 billion. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.2 billion. For 2013, the company expects to spend around $700 million on capital expenditures and around $300 million on acquisitions. The debt/EBITDA ratio is expected to be equal or below 3.0 by the end of 2013.
Targets for 2013: |
|
|
|
|
| Growth |
|
In Million US$ |
| 2012 |
| Goal 2013 |
| rate |
|
Revenue |
| 13,800 |
| > 14,600 |
| > 6% |
|
Operating income (EBIT) |
| 2,219 |
| 2,300 – 2,500 |
| 4% - 13% |
|
Net income (comparable basis*) |
| 1,047 |
| 1,100 - 1,200 |
| 5% - 15% |
|
*excluding investment gain
Rice Powell, chief executive officer of Fresenius Medical Care, commented: “Fresenius Medical Care looks back on another successful year. We once again achieved new records both in terms of revenue and earnings despite challenging global conditions. We were able to sustain our growth path but more importantly we made very good progress with our quality initiatives in both products and services. Quality and growth remain our top priorities in the future. With our strong management team and dedicated employees, Fresenius Medical Care remains very well positioned for great success in 2013 and beyond.”
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 full year 2012 on Tuesday, February 26, 2013, at 3:15 p.m. CET / 9:15 a.m. 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.
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 2.2 million individuals worldwide. Through its network of 3,160 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 257,916 patients around the globe. Fresenius Medical Care is also the world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.
For more information about Fresenius Medical Care, visit the company’s website at www.fmc-ag.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 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.
Fresenius Medical Care
Statement of Earnings
|
| Three Months Ended |
|
|
| Twelve Months Ended |
|
|
| ||||||||
|
| December 31, |
|
|
| December 31, |
|
|
| ||||||||
(in US-$ thousands, except share data) |
| 2012 |
| 2011 |
| Change |
| 2012 |
| 2011 |
| Change |
| ||||
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Dialysis care |
| 2,877,750 |
| 2,435,202 |
| 18.2 | % | 10,772,124 |
| 9,507,173 |
| 13.3 | % | ||||
Less: patient service bad debt provision |
| 73,700 |
| 57,554 |
| 28.1 | % | 280,365 |
| 224,545 |
| 24.9 | % | ||||
Net dialysis care |
| 2,804,050 |
| 2,377,648 |
| 17.9 | % | 10,491,759 |
| 9,282,628 |
| 13.0 | % | ||||
Dialysis products |
| 901,566 |
| 887,327 |
| 1.6 | % | 3,308,523 |
| 3,287,887 |
| 0.6 | % | ||||
Total net revenue |
| 3,705,616 |
| 3,264,975 |
| 13.5 | % | 13,800,282 |
| 12,570,515 |
| 9.8 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenue |
| 2,413,057 |
| 2,150,101 |
| 12.2 | % | 9,199,029 |
| 8,418,474 |
| 9.3 | % | ||||
Gross profit |
| 1,292,559 |
| 1,114,874 |
| 15.9 | % | 4,601,253 |
| 4,152,041 |
| 10.8 | % | ||||
Selling, general and administrative |
| 610,090 |
| 511,162 |
| 19.4 | % | 2,224,715 |
| 2,001,825 |
| 11.1 | % | ||||
Gain on sale of dialysis clinics |
| (2,205 | ) | (4,551 | ) | -51.5 | % | (36,224 | ) | (4,551 | ) | 696.0 | % | ||||
Research and development |
| 28,304 |
| 30,290 |
| -6.6 | % | 111,631 |
| 110,834 |
| 0.7 | % | ||||
Income from equity method investees |
| (2,770 | ) | (8,557 | ) | -67.6 | % | (17,442 | ) | (30,959 | ) | -43.7 | % | ||||
Other operating expenses |
| 100,000 |
| — |
|
|
| 100,000 |
| — |
|
|
| ||||
Operating income (EBIT) |
| 559,140 |
| 586,530 |
| -4.7 | % | 2,218,573 |
| 2,074,892 |
| 6.9 | % | ||||
Investment gain |
| — |
| — |
|
|
| (139,600 | ) | — |
|
|
| ||||
Interest income |
| (4,462 | ) | (16,943 | ) | -73.7 | % | (44,474 | ) | (59,825 | ) | -25.7 | % | ||||
Interest expense |
| 119,482 |
| 99,234 |
| 20.4 | % | 470,534 |
| 356,358 |
| 32.0 | % | ||||
Interest expense, net |
| 115,020 |
| 82,291 |
| 39.8 | % | 426,060 |
| 296,533 |
| 43.7 | % | ||||
Income before taxes |
| 444,120 |
| 504,239 |
| -11.9 | % | 1,932,113 |
| 1,778,359 |
| 8.6 | % | ||||
Income tax expense |
| 142,782 |
| 165,040 |
| -13.5 | % | 605,136 |
| 601,097 |
| 0.7 | % | ||||
Net income |
| 301,338 |
| 339,199 |
| -11.2 | % | 1,326,977 |
| 1,177,262 |
| 12.7 | % | ||||
Less: Net income attributable to noncontrolling interests |
| 44,226 |
| 28,762 |
| 53.8 | % | 140,168 |
| 106,108 |
| 32.1 | % | ||||
Net income attributable to shareholders of FMC AG & Co. KGaA |
| 257,112 |
| 310,437 |
| -17.2 | % | 1,186,809 |
| 1,071,154 |
| 10.8 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Operating income (EBIT) |
| 559,140 |
| 586,530 |
| -4.7 | % | 2,218,573 |
| 2,074,892 |
| 6.9 | % | ||||
Depreciation and amortization |
| 156,433 |
| 143,588 |
| 8.9 | % | 602,896 |
| 557,283 |
| 8.2 | % | ||||
EBITDA |
| 715,573 |
| 730,118 |
| -2.0 | % | 2,821,469 |
| 2,632,175 |
| 7.2 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per ordinary share |
| $ | 0.84 |
| $ | 1.02 |
| -17.9 | % | $ | 3.89 |
| $ | 3.54 |
| 10.0 | % |
Earnings per ordinary ADS |
| $ | 0.84 |
| $ | 1.02 |
| -17.9 | % | $ | 3.89 |
| $ | 3.54 |
| 10.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Ordinary shares |
| 302,388,558 |
| 299,897,235 |
|
|
| 301,139,652 |
| 299,012,744 |
|
|
| ||||
Preference shares |
| 3,972,955 |
| 3,965,479 |
|
|
| 3,969,307 |
| 3,961,617 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
In percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenue |
| 65.1 | % | 65.9 | % |
|
| 66.7 | % | 67.0 | % |
|
| ||||
Gross profit |
| 34.9 | % | 34.1 | % |
|
| 33.3 | % | 33.0 | % |
|
| ||||
Selling, general and administrative |
| 16.5 | % | 15.7 | % |
|
| 16.1 | % | 15.9 | % |
|
| ||||
Gain on sale of dialysis clinics |
| -0.1 | % | -0.1 | % |
|
| -0.3 | % | 0.0 | % |
|
| ||||
Research and development |
| 0.8 | % | 0.9 | % |
|
| 0.8 | % | 0.9 | % |
|
| ||||
Income from equity method investees |
| -0.1 | % | -0.3 | % |
|
| -0.1 | % | -0.2 | % |
|
| ||||
Other operating expenses |
| 2.7 | % | — |
|
|
| 0.7 | % | — |
|
|
| ||||
Operating income (EBIT) |
| 15.1 | % | 18.0 | % |
|
| 16.1 | % | 16.5 | % |
|
| ||||
Investment gain |
| — |
| — |
|
|
| -1.0 | % | — |
|
|
| ||||
Interest expense, net |
| 3.1 | % | 2.5 | % |
|
| 3.1 | % | 2.4 | % |
|
| ||||
Income before taxes |
| 12.0 | % | 15.4 | % |
|
| 14.0 | % | 14.1 | % |
|
| ||||
Income tax expense |
| 3.9 | % | 5.1 | % |
|
| 4.4 | % | 4.8 | % |
|
| ||||
Net income attributable to noncontrolling interests |
| 1.2 | % | 0.9 | % |
|
| 1.0 | % | 0.8 | % |
|
| ||||
Net income attributable to shareholders of FMC AG & Co. KGaA |
| 6.9 | % | 9.5 | % |
|
| 8.6 | % | 8.5 | % |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
EBITDA |
| 19.3 | % | 22.4 | % |
|
| 20.4 | % | 20.9 | % |
|
|
Fresenius Medical Care
Segment and Other Information
|
| Three Months Ended |
|
|
| Twelve Months Ended |
|
|
| ||||
|
| December 31, |
|
|
| December 31, |
|
|
| ||||
(in US-$ million, except employees) |
| 2012 |
| 2011 |
| Change |
| 2012 |
| 2011 |
| Change |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
| 2,429 |
| 2,038 |
| 19.2 | % | 9,031 |
| 7,926 |
| 14.0 | % |
International |
| 1,270 |
| 1,223 |
| 3.8 | % | 4,740 |
| 4,628 |
| 2.4 | % |
Corporate |
| 7 |
| 4 |
| 60.8 | % | 29 |
| 17 |
| 69.9 | % |
Total net revenue |
| 3,706 |
| 3,265 |
| 13.5 | % | 13,800 |
| 12,571 |
| 9.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
| 416 |
| 400 |
| 4.0 | % | 1,615 |
| 1,435 |
| 12.5 | % |
International |
| 212 |
| 228 |
| -7.2 | % | 809 |
| 807 |
| 0.2 | % |
Corporate |
| (69 | ) | (41 | ) | 64.2 | % | (205 | ) | (167 | ) | 22.6 | % |
Total operating income (EBIT) |
| 559 |
| 587 |
| -4.7 | % | 2,219 |
| 2,075 |
| 6.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income in percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
| 17.1 | % | 19.6 | % |
|
| 17.9 | % | 18.1 | % |
|
|
International |
| 16.7 | % | 18.7 | % |
|
| 17.1 | % | 17.4 | % |
|
|
Total |
| 15.1 | % | 18.0 | % |
|
| 16.1 | % | 16.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding special items (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (EBIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
| 516 |
| 400 |
| 29.0 | % | 1,715 |
| 1,435 |
| 19.5 | % |
International |
| 212 |
| 228 |
| -7.2 | % | 809 |
| 807 |
| 0.2 | % |
Corporate |
| (59 | ) | (41 | ) | 40.4 | % | (195 | ) | (167 | ) | 16.7 | % |
Total operating income (EBIT) |
| 669 |
| 587 |
| 14.1 | % | 2,329 |
| 2,075 |
| 12.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income in percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
| 21.2 | % | 19.6 | % |
|
| 19.0 | % | 18.1 | % |
|
|
International |
| 16.7 | % | 18.7 | % |
|
| 17.1 | % | 17.4 | % |
|
|
Total |
| 18.1 | % | 18.0 | % |
|
| 16.9 | % | 16.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees |
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalents |
|
|
|
|
|
|
| 86,153 |
| 79,159 |
|
|
|
(1) Special items in 2012: charges of $110 million booked in the fourth quarter of 2012 related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America and a donation to the American Society of Nephrology.
Fresenius Medical Care
Reconciliation of non US-GAAP
financial measures to the most directly
comparable US-GAAP financial measures
|
| Three Months Ended |
|
|
| Twelve Months Ended |
|
|
| ||||
|
| December 31, |
|
|
| December 31, |
|
|
| ||||
(in US-$ million) |
| 2012 |
| 2011 |
| Change |
| 2012 |
| 2011 |
| Change |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating performance excluding special items |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
| 559 |
| 587 |
| -4.7 | % | 2,219 |
| 2,075 |
| 6.9 | % |
Special items (1) |
| (110 | ) | — |
|
|
| (110 | ) | — |
|
|
|
Operating income (EBIT) excluding special items |
| 669 |
| 587 |
| 14.1 | % | 2,329 |
| 2,075 |
| 12.2 | % |
In percent of revenue |
| 18.1 | % | 18.0 | % |
|
| 16.9 | % | 16.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of FMC AG & Co. KGaA |
| 257 |
| 310 |
| -17.2 | % | 1,187 |
| 1,071 |
| 10.8 | % |
Special items (2) |
| (70 | ) | — |
|
|
| 69 |
| — |
|
|
|
Net income attributable to shareholders of FMC AG & Co. KGaA excluding special items |
| 327 |
| 310 |
| 5.5 | % | 1,118 |
| 1,071 |
| 4.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment information North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
| 2,429 |
| 2,038 |
|
|
|
|
|
|
|
|
|
Cost of revenue and research and development |
| 1,578 |
| 1,366 |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
| 340 |
| 287 |
|
|
|
|
|
|
|
|
|
Gain on sale of dialysis clinics |
| — |
| (5 | ) |
|
|
|
|
|
|
|
|
Income from equity method investees |
| (5 | ) | (10 | ) |
|
|
|
|
|
|
|
|
Other operating expenses |
| 100 |
| — |
|
|
|
|
|
|
|
|
|
Cost of revenue and operating expenses |
| 2,013 |
| 1,638 |
|
|
|
|
|
|
|
|
|
Operating income (EBIT) |
| 416 |
| 400 |
|
|
|
|
|
|
|
|
|
Special items (3) |
| (100 | ) | — |
|
|
|
|
|
|
|
|
|
Operating income (EBIT) excluding special items |
| 516 |
| 400 |
|
|
|
|
|
|
|
|
|
In percent of revenue |
| 21.2 | % | 19.6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. and excl. internal sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. internal sales |
| 408 |
| 404 |
|
|
|
|
|
|
|
|
|
Less internal sales |
| (201 | ) | (190 | ) |
|
|
|
|
|
|
|
|
Dialysis products external sales |
| 207 |
| 214 |
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products revenue incl. internal sales |
| 814 |
| 784 |
|
|
|
|
|
|
|
|
|
Less internal sales |
| (126 | ) | (115 | ) |
|
|
|
|
|
|
|
|
Dialysis products external sales |
| 688 |
| 669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash flow from operating activities to EBITDA (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA |
|
|
|
|
|
|
| 2,821 |
| 2,632 |
|
|
|
Interest expense, net |
|
|
|
|
|
|
| (426 | ) | (297 | ) |
|
|
Income tax expense |
|
|
|
|
|
|
| (605 | ) | (601 | ) |
|
|
Change in working capital and other non-cash items |
|
|
|
|
|
|
| 249 |
| (288 | ) |
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
| 2,039 |
| 1,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized EBITDA (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (EBIT) last twelve months |
|
|
|
|
|
|
| 2,255 |
| 2,075 |
|
|
|
Depreciation and amortization last twelve months |
|
|
|
|
|
|
| 612 |
| 557 |
|
|
|
Non-cash charges |
|
|
|
|
|
|
| 64 |
| 54 |
|
|
|
Annualized EBITDA |
|
|
|
|
|
|
| 2,931 |
| 2,686 |
|
|
|
(1) Special items in 2012: charges of $110 million booked in the fourth quarter of 2012 related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America and a donation to the American Society of Nephrology.
(2) Special items in 2012: number for Q4 2012 includes charges of $71 million after tax related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America and a donation to the American Society of Nephrology; number for FY 2012 also includes such charges of $71 million after tax and an investment gain in the amount of approximately $140 million related to the acquisition of Liberty Dialysis Holdings Inc.
(3) Special items in 2012: charges of $100 million booked in the fourth quarter of 2012 related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America.
(4) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care’s long-term debt instruments.
(5) EBITDA 2012: Pro forma numbers including Liberty Dialysis Holdings Inc., after FTC mandated divestitures.
Fresenius Medical Care
Balance Sheet
|
| December 31, |
| December 31, |
|
(in US-$ million) |
| 2012 |
| 2011 |
|
|
| (audited) |
| (audited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
| 6,127 |
| 5,695 |
|
Intangible assets |
| 12,132 |
| 9,873 |
|
Other non-current assets |
| 4,067 |
| 3,965 |
|
Total assets |
| 22,326 |
| 19,533 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
| 3,170 |
| 4,263 |
|
Long-term liabilities |
| 9,426 |
| 6,799 |
|
Noncontrolling interests subject to put provisions |
| 523 |
| 410 |
|
Total equity |
| 9,207 |
| 8,061 |
|
Total liabilities and equity |
| 22,326 |
| 19,533 |
|
|
|
|
|
|
|
Equity/assets ratio: |
| 41 | % | 41 | % |
|
|
|
|
|
|
Debt |
|
|
|
|
|
Short-term borrowings |
| 118 |
| 99 |
|
Short-term borrowings from related parties |
| 4 |
| 28 |
|
Current portion of long-term debt and capital lease obligations |
| 335 |
| 1,589 |
|
Long-term debt and capital lease obligations, less current portion |
| 7,841 |
| 5,495 |
|
Total debt |
| 8,298 |
| 7,211 |
|
Fresenius Medical Care
Cash Flow Statement
Twelve months ended December 31, |
| 2012 |
| 2011 |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
Net income |
| 1,327 |
| 1,177 |
|
Depreciation / amortization |
| 603 |
| 557 |
|
Investment gain |
| (140 | ) | — |
|
Change in working capital and other non-cash items |
| 249 |
| (288 | ) |
Cash Flow from operating activities |
| 2,039 |
| 1,446 |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchases of property, plant and equipment |
| (675 | ) | (598 | ) |
Proceeds from sale of property, plant and equipment |
| 9 |
| 28 |
|
Capital expenditures, net |
| (666 | ) | (570 | ) |
Free Cash Flow |
| 1,373 |
| 876 |
|
|
|
|
|
|
|
Acquisitions, net of cash acquired, and purchases of intangible assets |
| (1,879 | ) | (1,785 | ) |
Proceeds from divestitures |
| 264 |
| 10 |
|
Acquisitions, net of divestitures |
| (1,615 | ) | (1,775 | ) |
Free Cash Flow after investing activities |
| (242 | ) | (899 | ) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Change in accounts receivable securitization program |
| (373 | ) | 25 |
|
Change in intercompany debt |
| (24 | ) | 20 |
|
Change in other debt |
| 1,173 |
| 1,690 |
|
Proceeds from exercise of stock options |
| 121 |
| 95 |
|
Redemption of Trust Preferred Securities |
| — |
| (654 | ) |
Distributions to noncontrolling interests |
| (195 | ) | (130 | ) |
Contributions from noncontrolling interests |
| 38 |
| 28 |
|
Dividends paid |
| (272 | ) | (281 | ) |
Cash Flow from financing activities |
| 468 |
| 793 |
|
|
|
|
|
|
|
Effects of exchange rates on cash |
| 5 |
| 40 |
|
Net increase (decrease) in cash |
| 231 |
| (66 | ) |
|
|
|
|
|
|
Cash at beginning of period |
| 457 |
| 523 |
|
Cash at end of period |
| 688 |
| 457 |
|
Fresenius Medical Care
Quarterly Performance Scorecard - Revenue
Three months ended December 31, |
| 2012 |
| cc |
| 2011 |
| cc |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
|
|
|
|
Net revenue |
| 2,429,108 |
|
|
| 2,037,958 |
|
|
|
Growth year-over-year |
| 19.2 | % |
|
| 0.8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Net Dialysis care |
| 2,222,369 |
|
|
| 1,823,944 |
|
|
|
Growth year-over-year |
| 21.8 | % |
|
| 0.7 | % |
|
|
U.S. per treatment |
| 368 |
|
|
| 351 |
|
|
|
Per treatment |
| 361 |
|
|
| 343 |
|
|
|
Sequential growth |
| 5.5 | % |
|
| 1.8 | % |
|
|
Growth year-over-year |
| 5.2 | % |
|
| -1.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
Dialysis products |
|
|
|
|
|
|
|
|
|
Incl. internal sales |
| 407,856 |
|
|
| 403,925 |
|
|
|
Growth year-over-year |
| 1.0 | % |
|
| 1.1 | % |
|
|
External sales |
| 206,740 |
|
|
| 214,015 |
|
|
|
Growth year-over-year |
| -3.4 | % |
|
| 2.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
Net revenue |
| 1,269,778 |
|
|
| 1,222,833 |
|
|
|
Growth year-over-year |
| 3.8 | % | 6.5 | % | 11.7 | % | 13.7 | % |
|
|
|
|
|
|
|
|
|
|
Net dialysis care |
| 581,682 |
|
|
| 553,705 |
|
|
|
Growth year-over-year |
| 5.1 | % | 7.8 | % | 12.5 | % | 16.0 | % |
Per treatment |
| 160 |
| 164 |
| 161 |
| 166 |
|
Sequential growth |
| 1.3 | % |
|
| -5.2 | % |
|
|
Growth year-over-year |
| -0.9 | % | 1.7 | % | -4.4 | % | -1.4 | % |
|
|
|
|
|
|
|
|
|
|
Dialysis products |
|
|
|
|
|
|
|
|
|
Incl. internal sales |
| 814,007 |
|
|
| 783,569 |
|
|
|
Growth year-over-year |
| 3.9 | % | 6.5 | % | 11.4 | % | 12.8 | % |
External sales |
| 688,096 |
|
|
| 669,129 |
|
|
|
Growth year-over-year |
| 2.8 | % | 5.4 | % | 11.0 | % | 11.9 | % |
cc = constant currency
Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure “at constant exchange rates” in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term “constant currency”, it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage “at constant exchange rates”.
We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
Fresenius Medical Care
Quarterly Performance Scorecard - Dialysis Care Volume
Three months ended December 31, |
| 2012 |
| 2011 |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Number of treatments |
| 6,346,805 |
| 5,498,236 |
|
Treatments per day |
| 79,335 |
| 69,598 |
|
Per day sequential growth |
| 0.2 | % | 0.4 | % |
Per day year-over-year growth |
| 14.0 | % | 2.9 | % |
Same market growth year-over-year |
| 3.9 | % | 2.7 | % |
|
|
|
|
|
|
International |
|
|
|
|
|
Number of treatments |
| 3,639,060 |
| 3,433,967 |
|
Same market growth year-over-year |
| 5.2 | % | 4.2 | % |
Fresenius Medical Care
Quarterly Performance Scorecard - Expenses
Three months ended December 31, |
| 2012 |
| 2011 |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Cost of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees |
|
|
|
|
|
In percent of revenue (1) |
| 82.9 | % | 80.4 | % |
Selling, general and administrative |
|
|
|
|
|
In percent of revenue |
| 14.0 | % | 14.1 | % |
U.S. Dialysis care operating expenses/treatment (in US-$) |
| 286 |
| 279 |
|
Sequential growth |
| 1.8 | % | 0.2 | % |
Growth year-over-year |
| 2.5 | % | -2.6 | % |
Dialysis Care operating expenses/treatment (in US-$) |
| 280 |
| 273 |
|
Sequential growth |
| 1.7 | % | 0.0 | % |
Growth year-over-year |
| 2.6 | % | -2.7 | % |
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Cost of revenue and operating expenses, gain on sale of dialysis clinics and income from equity method investees |
|
|
|
|
|
In percent of revenue (2) |
| 84.9 | % | 82.0 | % |
Selling, general and administrative |
|
|
|
|
|
In percent of revenue (3) |
| 16.5 | % | 15.7 | % |
Effective tax rate |
| 32.1 | % | 32.7 | % |
(1) 2012 includes 4.1% related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America.
(2) 2012 includes 3.0% related to the amendment of the distribution, manufacturing and supply agreement for iron products in North America and a donation to the American Society of Nephrology.
(3) 2012 includes 0.3% related to a donation to the American Society of Nephrology.
Fresenius Medical Care
Quarterly Performance Scorecard - Cash Flow/Investing Activities
Three months ended December 31, |
| 2012 |
| 2011 |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Operating cash flow |
| 571,689 |
| 496,782 |
|
In percent of revenue |
| 15.4 | % | 15.2 | % |
|
|
|
|
|
|
Free cash flow before acquisitions |
| 344,716 |
| 306,362 |
|
In percent of revenue |
| 9.3 | % | 9.4 | % |
|
|
|
|
|
|
Acquisitions and investments, net of divestitures |
| 58,518 |
| 604,046 |
|
|
|
|
|
|
|
Capital expenditures, net |
| 226,973 |
| 190,420 |
|
In percent of revenue |
| 6.1 | % | 5.8 | % |
|
|
|
|
|
|
Maintenance |
| 136,948 |
| 97,554 |
|
In percent of revenue |
| 3.7 | % | 3.0 | % |
|
|
|
|
|
|
Growth |
| 90,025 |
| 92,866 |
|
In percent of revenue |
| 2.4 | % | 2.8 | % |
|
|
|
|
|
|
Number of de novos |
| 14 |
| 10 |
|
North America |
| 10 |
| 6 |
|
International |
| 4 |
| 4 |
|
Fresenius Medical Care
Quarterly Performance Scorecard - Balance Sheet
December 31, |
| 2012 |
| 2011 |
|
(audited) |
|
|
|
|
|
|
|
|
|
|
|
Total Group |
|
|
|
|
|
Debt (in US-$ million) |
| 8,298 |
| 7,211 |
|
Debt/EBITDA |
| 2.8 |
| 2.7 |
|
|
|
|
|
|
|
North America |
|
|
|
|
|
Days sales outstanding |
| 55 |
| 55 |
|
|
|
|
|
|
|
International |
|
|
|
|
|
Days sales outstanding |
| 115 |
| 121 |
|
Fresenius Medical Care
Quarterly Performance Scorecard
Three months ended December 31, |
| 2012 |
| 2011 |
|
|
|
|
|
|
|
North America (U.S.) |
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
Single Pool Kt/v > 1.2 |
| 97 | % | 97 | % |
Hemoglobin = 10-12g/dl |
| 75 | % | 78 | % |
Hemoglobin = 10-13g/dl |
| 82 | % | 88 | % |
Calcium = 8.4-10.2mg/dl |
| 84 | % | 81 | % |
Albumin >= 3.5 g/dl (1) |
| 85 | % | 85 | % |
No catheter (> 90 days) |
| 82 | % | 82 | % |
Phosphate <= 5.5mg/dl |
| 66 | % | 64 | % |
Hospitalization days per patient (12 months ending December 31) |
| 9.8 |
| 9.8 |
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
Average age (in years) |
| 62 |
| 62 |
|
Average time on dialysis (in years) |
| 3.9 |
| 3.8 |
|
Average body weight (in kg) |
| 82 |
| 81 |
|
Prevalence of diabetes |
| 58 | % | 56 | % |
|
|
|
|
|
|
Europe, Middle East and Africa |
|
|
|
|
|
Clinical Performance |
|
|
|
|
|
Single Pool Kt/v > 1.2 |
| 97 | % | 95 | % |
Hemoglobin = 10-12g/dl |
| 58 | % | 57 | % |
Hemoglobin = 10-13g/dl |
| 78 | % | 78 | % |
Calcium = 8.4-10.2mg/dl |
| 78 | % | 78 | % |
Albumin >= 3.5 g/dl (1) |
| 86 | % | 88 | % |
No catheter (> 90 days) |
| 85 | % | 84 | % |
Phosphate <= 5.5mg/dl |
| 79 | % | 76 | % |
Hospitalization days per patient (12 months ending December 31) |
| 9.3 |
| 9.3 |
|
|
|
|
|
|
|
Demographics |
|
|
|
|
|
Average age (in years) |
| 64 |
| 64 |
|
Average time on dialysis (in years) |
| 5.3 |
| 5.0 |
|
Average body weight (in kg) |
| 71 |
| 71 |
|
Prevalence of diabetes |
| 28 | % | 27 | % |
(1) International standard BCR CRM470