Exhibit 99.2
Fresenius Medical Care AG & Co. KGaA
COMPLETE OVERVIEW OF THE SECOND QUARTER AND FIRST HALF YEAR 2023
August 2, 2023
Investor Relations
phone: +49 6172 609 2525
email: ir@fmc-ag.com
Content: | |
Statement of earnings | page 2 |
Segment information | page 3 |
Balance sheet | page 4 |
Cash flow | page 5 |
Revenue development by segment | page 6 |
Key metrics | page 7 |
Reconciliation results excl. special items | page 8 |
Outlook 2023 | page 9 |
Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Rounding adjustments applied to individual numbers and percentages may result in these figures differing immaterially from their absolute values. Furthermore, totals and subtotals in tables may differ slightly from unrounded figures due to rounding in accordance with commercial rounding conventions.
Copyright by Fresenius Medical Care AG & Co. KGaA
Statement of earnings
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
in € million, except share data, unaudited | 2023 | 2022 | Change | Change at cc | 2023 | 2022 | Change | Change at cc | ||||||||||||||||||||||||
Total revenue | 4,825 | 4,757 | 1.4 | % | 6.0 | % | 9,529 | 9,305 | 2.4 | % | 3.9 | % | ||||||||||||||||||||
Costs of revenue | 3,628 | 3,511 | 3.3 | % | 8.2 | % | 7,183 | 6,886 | 4.3 | % | 5.9 | % | ||||||||||||||||||||
Selling, general and administrative expenses | 775 | 758 | 2.3 | % | 5.7 | % | 1,557 | 1,548 | 0.6 | % | 1.2 | % | ||||||||||||||||||||
Research and development expenses | 57 | 55 | 3.2 | % | 4.2 | % | 113 | 105 | 7.5 | % | 7.1 | % | ||||||||||||||||||||
Income from equity method investees | (48 | ) | (19 | ) | 149.2 | % | 149.4 | % | (76 | ) | (30 | ) | 153.8 | % | 153.6 | % | ||||||||||||||||
Other operating income | (76 | ) | (110 | ) | -31.3 | % | -23.3 | % | (193 | ) | (239 | ) | -19.2 | % | -5.9 | % | ||||||||||||||||
Other operating expense | 132 | 221 | -40.3 | % | -29.2 | % | 327 | 347 | -5.7 | % | 10.9 | % | ||||||||||||||||||||
Operating income | 357 | 341 | 4.7 | % | 5.5 | % | 618 | 688 | -10.3 | % | -11.4 | % | ||||||||||||||||||||
Operating income excl. special items and PRF 1 | 401 | 284 | 41.3 | % | 43.5 | % | 755 | 675 | 11.9 | % | 11.0 | % | ||||||||||||||||||||
Interest income | (24 | ) | (13 | ) | 89.3 | % | 105.0 | % | (36 | ) | (27 | ) | 34.8 | % | 46.4 | % | ||||||||||||||||
Interest expense | 105 | 85 | 24.1 | % | 27.8 | % | 199 | 168 | 19.0 | % | 19.6 | % | ||||||||||||||||||||
Interest expense, net | 81 | 72 | 12.5 | % | 14.1 | % | 163 | 141 | 16.0 | % | 14.4 | % | ||||||||||||||||||||
Income before income taxes | 276 | 269 | 2.7 | % | 3.2 | % | 455 | 547 | -17.0 | % | -18.0 | % | ||||||||||||||||||||
Income tax expense | 81 | 63 | 28.9 | % | 29.1 | % | 126 | 130 | -3.1 | % | -4.3 | % | ||||||||||||||||||||
Net income | 195 | 206 | -5.4 | % | -4.8 | % | 329 | 417 | -21.3 | % | -22.2 | % | ||||||||||||||||||||
Net income attributable to noncontrolling interests | 55 | 59 | -7.3 | % | -6.2 | % | 102 | 112 | -9.9 | % | -11.1 | % | ||||||||||||||||||||
Net income attributable to shareholders of FMC AG & Co. KGaA | 140 | 147 | -4.6 | % | -4.2 | % | 227 | 305 | -25.5 | % | -26.4 | % | ||||||||||||||||||||
Net income attributable to shareholders of FMC AG & Co. KGaA excl. special items and PRF 1 | 175 | 116 | 50.9 | % | 53.6 | % | 329 | 313 | 5.2 | % | 4.6 | % | ||||||||||||||||||||
Operating income | 357 | 341 | 4.7 | % | 5.5 | % | 618 | 688 | -10.3 | % | -11.4 | % | ||||||||||||||||||||
Depreciation, amortization and impairment loss | 434 | 422 | 2.7 | % | 5.8 | % | 872 | 842 | 3.6 | % | 3.8 | % | ||||||||||||||||||||
EBITDA | 791 | 763 | 3.6 | % | 5.7 | % | 1,490 | 1,530 | -2.6 | % | -3.0 | % | ||||||||||||||||||||
Weighted average number of shares | 293,413,449 | 293,145,413 | 293,413,449 | 293,076,643 | ||||||||||||||||||||||||||||
Basic earnings per share | € | 0.48 | € | 0.50 | -4.7 | % | -4.3 | % | € | 0.77 | € | 1.04 | -25.6 | % | -26.5 | % | ||||||||||||||||
Basic earnings per ADS | € | 0.24 | € | 0.25 | -4.7 | % | -4.3 | % | € | 0.39 | € | 0.52 | -25.6 | % | -26.5 | % | ||||||||||||||||
In percent of revenue | ||||||||||||||||||||||||||||||||
Operating income margin | 7.4 | % | 7.2 | % | 6.5 | % | 7.4 | % | ||||||||||||||||||||||||
Operating income margin excl. special items and PRF 1 | 8.3 | % | 6.0 | % | 7.9 | % | 7.2 | % | ||||||||||||||||||||||||
EBITDA margin | 16.4 | % | 16.0 | % | 15.6 | % | 16.4 | % |
1 For a reconciliation of special items, please refer to the table on page 8.
Statement of earnings | page 2 of 9 | August 2, 2023 |
Segment information
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
unaudited | 2023 | 2022 | Change | Change at cc | 2023 | 2022 | Change | Change at cc | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Revenue in € million | 4,825 | 4,757 | 1.4 | % | 6.0 | % | 9,529 | 9,305 | 2.4 | % | 3.9 | % | ||||||||||||||||||||
Operating income in € million | 357 | 341 | 4.7 | % | 5.5 | % | 618 | 688 | -10.3 | % | -11.4 | % | ||||||||||||||||||||
Operating income margin | 7.4 | % | 7.2 | % | 6.5 | % | 7.4 | % | ||||||||||||||||||||||||
Operating income in € million excl. special items and PRF 1 | 401 | 284 | 41.3 | % | 43.5 | % | 755 | 675 | 11.9 | % | 11.0 | % | ||||||||||||||||||||
Operating income margin excl. special items and PRF 1 | 8.3 | % | 6.0 | % | 7.9 | % | 7.2 | % | ||||||||||||||||||||||||
Days sales outstanding (DSO) 2 | 68 | 68 | ||||||||||||||||||||||||||||||
Employees (headcount) | 124,295 | 130,448 | ||||||||||||||||||||||||||||||
Care Delivery segment | ||||||||||||||||||||||||||||||||
Revenue in € million | 3,873 | 3,822 | 1.3 | % | 5.7 | % | 7,628 | 7,469 | 2.1 | % | 3.3 | % | ||||||||||||||||||||
Operating income in € million | 384 | 433 | -11.3 | % | -10.3 | % | 669 | 731 | -8.5 | % | -9.6 | % | ||||||||||||||||||||
Operating income margin | 9.9 | % | 11.3 | % | 8.8 | % | 9.8 | % | ||||||||||||||||||||||||
Operating income in € million excl. special items and PRF 1 | 402 | 287 | 39.6 | % | 41.6 | % | 704 | 599 | 17.8 | % | 16.8 | % | ||||||||||||||||||||
Operating income margin excl. special items and PRF 1 | 10.4 | % | 7.5 | % | 9.2 | % | 8.0 | % | ||||||||||||||||||||||||
Days sales outstanding (DSO) 2 | 61 | 60 | ||||||||||||||||||||||||||||||
Care Enablement segment | ||||||||||||||||||||||||||||||||
Revenue in € million | 1,325 | 1,318 | 0.5 | % | 5.7 | % | 2,635 | 2,586 | 1.9 | % | 4.6 | % | ||||||||||||||||||||
Operating income in € million | 2 | (11 | ) | n.a | n.a | (23 | ) | 59 | n.a | n.a | ||||||||||||||||||||||
Operating income margin | 0.1 | % | -0.8 | % | -0.9 | % | 2.3 | % | ||||||||||||||||||||||||
Operating income in € million excl. special items and PRF 1 | 19 | 3 | 532.7 | % | 600.5 | % | 88 | 100 | -11.7 | % | -12.9 | % | ||||||||||||||||||||
Operating income margin excl. special items and PRF 1 | 1.4 | % | 0.2 | % | 3.3 | % | 3.8 | % | ||||||||||||||||||||||||
Days sales outstanding (DSO) 2 | 97 | 100 | ||||||||||||||||||||||||||||||
Inter-segment eliminations 3 | ||||||||||||||||||||||||||||||||
Revenue in € million | (373 | ) | (383 | ) | -2.9 | % | 2.5 | % | (734 | ) | (750 | ) | -2.1 | % | 0.1 | % | ||||||||||||||||
Operating income in € million | (4 | ) | 3 | n.a | n.a | (13 | ) | (8 | ) | 91.4 | % | 89.8 | % | |||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
Operating income in € million | (25 | ) | (84 | ) | -69.8 | % | -69.2 | % | (15 | ) | (94 | ) | -84.0 | % | -84.8 | % | ||||||||||||||||
Operating income in € million excl. special items and PRF 1 | (16 | ) | (9 | ) | 79.2 | % | 92.4 | % | (24 | ) | (16 | ) | 50.6 | % | 45.6 | % |
1 For a reconciliation of special items, please refer to the table on page 8.
2 2022 includes DSO as of December 31, 2022.
3 The Company transfers products between segments at fair market value. The associated internal revenues and expenses and any remaining internally generated profit or loss for the product transfers are recorded within the operating segments initially, are eliminated upon consolidation and are included within “Inter-segment eliminations”.
cc = constant currency. Changes in revenue, operating income and net income attributable to shareholders of FMC AG & Co. KGaA include the impact of changes in foreign currency exchange rates. We calculate and present these financial measures using both IFRS® Accounting Standards and at constant exchange rates to show changes in these metrics and other items without giving effect to period-to-period currency fluctuations. Under IFRS Accounting Standards, amounts received in local (non- euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant Currency".
Segment information | page 3 of 9 | August 2, 2023 |
Balance sheet
June 30, | December 31, | |||||||
in € million, except for net leverage ratio, unaudited | 2023 | 2022 | ||||||
Assets | ||||||||
Current assets | 8,347 | 8,203 | ||||||
Goodwill and intangible assets | 16,824 | 17,310 | ||||||
Right-of-use assets | 3,977 | 4,187 | ||||||
Other non-current assets | 5,812 | 6,054 | ||||||
Total assets | 34,960 | 35,754 | ||||||
Liabilities and equity | ||||||||
Current liabilities | 6,624 | 6,467 | ||||||
Non-current liabilities | 13,406 | 13,838 | ||||||
Total equity | 14,930 | 15,449 | ||||||
Total liabilities and equity | 34,960 | 35,754 | ||||||
Equity/assets ratio | 43 | % | 43 | % | ||||
Debt and lease liabilities | ||||||||
Short-term debt from unrelated parties | 901 | 665 | ||||||
Short-term debt from related parties | 3 | 4 | ||||||
Current portion of long-term debt | 701 | 694 | ||||||
Current portion of lease liabilities from unrelated parties | 627 | 650 | ||||||
Current portion of lease liabilities from related parties | 25 | 24 | ||||||
Long-term debt, less current portion | 6,997 | 7,171 | ||||||
Lease liabilities from unrelated parties, less current portion | 3,685 | 3,875 | ||||||
Lease liabilities from related parties, less current portion | 126 | 130 | ||||||
Debt and lease liabilities included within liabilities directly associated with assets held for sale | 12 | — | ||||||
Total debt and lease liabilities | 13,077 | 13,213 | ||||||
Minus: Cash and cash equivalents1 | (1,363 | ) | (1,274 | ) | ||||
Total net debt and lease liabilities | 11,714 | 11,939 | ||||||
Reconciliation of annualized adjusted EBITDA and net leverage | ||||||||
ratio to the most directly comparable IFRS financial measures | ||||||||
Net income | 805 | 895 | ||||||
Income tax expense | 321 | 325 | ||||||
Interest income | (77 | ) | (68 | ) | ||||
Interest expense | 392 | 360 | ||||||
Depreciation and amortization | 1,700 | 1,718 | ||||||
Adjustments2 | 319 | 320 | ||||||
Annualized adjusted EBITDA | 3,460 | 3,550 | ||||||
Net leverage ratio | 3.4 | 3.4 |
1 Includes cash and cash equivalents included within assets held for sale.
2 Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Syndicated Credit Facility (2023: -€12 M; 2022: -€22 M), non-cash charges, primarily related to pension expense (2023: €51 M; 2022: €54 M), impairment loss (2023: €168 M; 2022: €120 M) and special items, including costs related to the FME25 Program (2023: €142 M; 2022: €155 M), Legal Form Conversion Costs (2023: €7 M), Legacy Portfolio Optimization (2023: €71 M), Net Gain Related to InterWell Health (2023: -€114 M; 2022: -€114 M), Humacyte Investment Remeasurement (2023: €10 M; 2022: €103 M), Hyperinflation in Turkiye (2023: -€1 M; 2022: €5 M) and the Impacts Related to the War in Ukraine (2023: -€3 M; 2022: €19 M).
Balance sheet | page 4 of 9 | August 2, 2023 |
Cash flow statement
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
in € million, unaudited | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Operating activities | ||||||||||||||||
Net income | 195 | 206 | 329 | 417 | ||||||||||||
Depreciation, amortization and impairment loss | 434 | 422 | 872 | 842 | ||||||||||||
Change in trade accounts and other receivables from unrelated parties | 326 | 177 | (80 | ) | (56 | ) | ||||||||||
Change in inventories | (22 | ) | (56 | ) | (111 | ) | (118 | ) | ||||||||
Change in other working capital and non-cash items | 74 | 2 | 140 | (175 | ) | |||||||||||
Net cash provided by (used in) operating activities | 1,007 | 751 | 1,150 | 910 | ||||||||||||
In percent of revenue | 20.9 | % | 15.8 | % | 12.1 | % | 9.8 | % | ||||||||
Investing activities | ||||||||||||||||
Purchases of property, plant and equipment and capitalized development costs | (155 | ) | (172 | ) | (298 | ) | (334 | ) | ||||||||
Proceeds from sale of property, plant and equipment | 0 | 3 | 2 | 5 | ||||||||||||
Capital expenditures, net | (155 | ) | (169 | ) | (296 | ) | (329 | ) | ||||||||
Free cash flow | 852 | 582 | 854 | 581 | ||||||||||||
In percent of revenue | 17.7 | % | 12.2 | % | 9.0 | % | 6.2 | % | ||||||||
Acquisitions and investments, net of cash acquired, and purchases of intangible assets | (10 | ) | (24 | ) | (14 | ) | (61 | ) | ||||||||
Investments in debt securities | (17 | ) | (43 | ) | (63 | ) | (86 | ) | ||||||||
Proceeds from divestitures | 13 | 26 | 25 | 40 | ||||||||||||
Proceeds from sale of debt securities | 36 | 13 | 51 | 27 | ||||||||||||
Free cash flow after investing activities | 874 | 554 | 853 | 501 |
Cash flow | page 5 of 9 | August 2, 2023 |
Revenue development by segment | ||||||||||||||||||||||||
Same market | ||||||||||||||||||||||||
Change | Organic | treatment | ||||||||||||||||||||||
in € million, unaudited | 2023 | 2022 | Change | at cc | growth | growth1 | ||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||||
Total revenue | 4,825 | 4,757 | 1.4 | % | 6.0 | % | 6.3 | % | ||||||||||||||||
Care Delivery segment | 3,873 | 3,822 | 1.3 | % | 5.7 | % | 6.2 | % | 0.3 | % | ||||||||||||||
Thereof: U.S. | 3,120 | 3,066 | 1.7 | % | 3.7 | % | 4.0 | % | -0.1 | % | ||||||||||||||
Thereof: International | 753 | 756 | -0.3 | % | 14.0 | % | 14.9 | % | 0.9 | % | ||||||||||||||
Care Enablement segment | 1,325 | 1,318 | 0.5 | % | 5.7 | % | 5.7 | % | ||||||||||||||||
Inter-segment eliminations | (373 | ) | (383 | ) | -2.9 | % | 2.5 | % | ||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||
Total revenue | 9,529 | 9,305 | 2.4 | % | 3.9 | % | 4.4 | % | ||||||||||||||||
Care Delivery segment | 7,628 | 7,469 | 2.1 | % | 3.3 | % | 3.9 | % | 0.2 | % | ||||||||||||||
Thereof: U.S. | 6,123 | 5,996 | 2.1 | % | 0.9 | % | 1.6 | % | -0.1 | % | ||||||||||||||
Thereof: International | 1,505 | 1,473 | 2.2 | % | 12.9 | % | 13.6 | % | 0.7 | % | ||||||||||||||
Care Enablement segment | 2,635 | 2,586 | 1.9 | % | 4.6 | % | 4.6 | % | ||||||||||||||||
Inter-segment eliminations | (734 | ) | (750 | ) | -2.1 | % | 0.1 | % |
1 Same market treatment growth = organic growth less price effects
Reconciliation of health care services and health care products revenue to new segments
2023 | 2022 | |||||||||||||||||||||||||||||||
Care Delivery | Care Enablement | Inter- segment | Care Delivery | Care Enablement | Inter- segment | |||||||||||||||||||||||||||
in € million, unaudited | segment | segment | eliminations | Total | segment | segment | eliminations | Total | ||||||||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||||||||||||
Health care services revenue | 3,829 | — | — | 3,829 | 3,782 | — | — | 3,782 | ||||||||||||||||||||||||
Health care products revenue | 44 | 952 | — | 996 | 40 | 935 | — | 975 | ||||||||||||||||||||||||
Inter-segment revenue | — | 373 | (373 | ) | — | — | 383 | (383 | ) | — | ||||||||||||||||||||||
Revenue | 3,873 | 1,325 | (373 | ) | 4,825 | 3,822 | 1,318 | (383 | ) | 4,757 | ||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||
Health care services revenue | 7,541 | — | — | 7,541 | 7,389 | — | — | 7,389 | ||||||||||||||||||||||||
Health care products revenue | 87 | 1,901 | — | 1,988 | 80 | 1,836 | — | 1,916 | ||||||||||||||||||||||||
Inter-segment revenue | — | 734 | (734 | ) | — | — | 750 | (750 | ) | — | ||||||||||||||||||||||
Revenue | 7,628 | 2,635 | (734 | ) | 9,529 | 7,469 | 2,586 | (750 | ) | 9,305 |
Revenue development by segment | page 6 of 9 | August 2, 2023 |
Key metrics Care Delivery segment
Six months ended June 30, 2023 | ||||||||||||||||||||||||||||
Growth | Growth | Growth | ||||||||||||||||||||||||||
in % | Net change | in % | in % | |||||||||||||||||||||||||
unaudited | Clinics | yoy | in clinics 1 | Patients | yoy | Treatments | yoy | |||||||||||||||||||||
Total | 4,050 | -3 | % | (66 | ) | 344,086 | 0 | % | 25,812,988 | 0 | % | |||||||||||||||||
Thereof: U.S. | 2,634 | -2 | % | (37 | ) | 206,692 | 0 | % | 15,525,016 | 0 | % | |||||||||||||||||
Thereof: International | 1,416 | -4 | % | (29 | ) | 137,394 | -1 | % | 10,287,972 | -1 | % |
1 Net change in clinics (acquired, de novo, combined, closed and sold) in comparison to December 31, 2022.
yoy = year-on-year
Key metrics | page 7 of 9 | August 2, 2023 |
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparability with the Company´s outlook
Results excl. special items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special items | Special items | and PRF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in € million, | Legal Form | Legacy Portfolio | Humacyte Investment | Results 2023 | Humacyte Investment | Hyper- | Provider Relief | Sum of | Results 2022 excl. special | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
except share data, | Results | FME25 | Conversion | Optimiza- | Remeasure- | Sum of | excl.special | Results | FME25 | Remeasure- | Ukraine | inflation | Funding | special items | items | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||
unaudited | 2023 | Program | Costs | tion 1 | ment | special items | items | 2022 | Program | ment | War2 | in Turkiye | (PRF) | and PRF | and PRF | Change | at cc | |||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | 4,825 | — | 4,825 | 4,757 | — | 4,757 | 1.4 | % | 6.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 791 | 14 | 5 | 11 | 4 | 34 | 825 | 763 | 21 | 75 | 2 | 6 | (161 | ) | (57 | ) | 706 | 16.8 | % | 19.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total operating income | 357 | 25 | 5 | 10 | 4 | 44 | 401 | 341 | 21 | 75 | 2 | 6 | (161 | ) | (57 | ) | 284 | 41.3 | % | 43.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Care Delivery segment | 384 | 8 | — | 10 | — | 18 | 402 | 433 | 13 | — | 2 | 0 | (161 | ) | (146 | ) | 287 | 39.6 | % | 41.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Care Enablement segment | 2 | 17 | — | 0 | — | 17 | 19 | (11 | ) | 8 | — | 0 | 6 | — | 14 | 3 | 532.7 | % | 600.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | (4 | ) | — | — | — | — | — | (4 | ) | 3 | — | — | — | — | — | — | 3 | n.a. | n.a. | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | (25 | ) | 0 | 5 | — | 4 | 9 | (16 | ) | (84 | ) | — | 75 | — | — | — | 75 | (9 | ) | 79.2 | % | 92.4 | % | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 81 | — | 81 | 72 | — | 72 | 12.5 | % | 14.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 81 | 5 | 1 | 2 | 1 | 9 | 90 | 63 | 6 | 20 | — | — | (42 | ) | (16 | ) | 47 | 94.9 | % | 97.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 55 | — | — | 0 | — | — | 55 | 59 | — | — | — | — | (10 | ) | (10 | ) | 49 | 10.5 | % | 12.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income3 | 140 | 20 | 4 | 8 | 3 | 35 | 175 | 147 | 15 | 55 | 2 | 6 | (109 | ) | (31 | ) | 116 | 50.9 | % | 53.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | € | 0.48 | € | 0.07 | € | 0.01 | € | 0.02 | € | 0.01 | € | 0.11 | € | 0.59 | € | 0.50 | € | 0.05 | € | 0.19 | € | 0.01 | € | 0.02 | € | (0.38 | ) | € | (0.11 | ) | € | 0.39 | 50.7 | % | 53.5 | % | ||||||||||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | 9,529 | — | 9,529 | 9,305 | — | 9,305 | 2.4 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 1,490 | 36 | 7 | 71 | (15 | ) | 99 | 1,589 | 1,530 | 49 | 78 | 23 | 6 | (177 | ) | (21 | ) | 1,509 | 5.3 | % | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total operating income | 618 | 51 | 7 | 94 | (15 | ) | 137 | 755 | 688 | 57 | 78 | 23 | 6 | (177 | ) | (13 | ) | 675 | 11.9 | % | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Care Delivery segment | 669 | 24 | — | 11 | — | 35 | 704 | 731 | 35 | — | 10 | 0 | (177 | ) | (132 | ) | 599 | 17.8 | % | 16.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Care Enablement segment | (23 | ) | 28 | — | 83 | — | 111 | 88 | 59 | 22 | — | 13 | 6 | — | 41 | 100 | -11.7 | % | -12.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | (13 | ) | — | — | — | — | — | (13 | ) | (8 | ) | — | — | — | — | — | — | (8 | ) | 91.4 | % | 89.8 | % | |||||||||||||||||||||||||||||||||||||||||||
Corporate | (15 | ) | (1 | ) | 7 | — | (15 | ) | (9 | ) | (24 | ) | (94 | ) | — | 78 | — | — | — | 78 | (16 | ) | 50.6 | % | 45.6 | % | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 163 | — | 163 | 141 | — | 141 | 16.0 | % | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 126 | 11 | 2 | 25 | (4 | ) | 34 | 160 | 130 | 17 | 21 | 3 | — | (48 | ) | (7 | ) | 123 | 31.1 | % | 30.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 102 | — | — | 1 | — | 1 | 103 | 112 | — | — | — | — | (14 | ) | (14 | ) | 98 | 3.7 | % | 2.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net income3 | 227 | 40 | 5 | 68 | (11 | ) | 102 | 329 | 305 | 40 | 57 | 20 | 6 | (115 | ) | 8 | 313 | 5.2 | % | 4.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | € | 0.77 | € | 0.14 | € | 0.02 | € | 0.23 | € | (0.04 | ) | € | 0.35 | € | 1.12 | € | 1.04 | € | 0.14 | € | 0.19 | € | 0.07 | € | 0.02 | € | (0.39 | ) | € | 0.03 | € | 1.07 | 5.1 | % | 4.5 | % |
1 Costs mainly comprise the derecognition of capitalized development costs and the impairment of intangible assets (licenses and distribution rights) as well as termination costs (including certain contractual obligation expenses) related to a dialysis cycler development program which was discontinued in Q1 2023 and other expenses related to a divestiture agreed upon in Q2 2023.
2 Bad debt expense in Russia and Ukraine and accruals for certain risks associated with allowances on inventories related to the Ukraine War.
3 Attributable to shareholders of FMC AG & Co. KGaA
Reconciliation results excl. special items | page 8 of 9 | August 2, 2023 |
Outlook 2023
Outlook 2023 | ||||
Results 2022 | (at Constant Currency) | |||
Revenue1 | €19,398 M | low to mid-single digit percentage rate growth | ||
flat to low-single digit percentage rate decline | ||||
Operating income1 | €1,540 M | (initially: flat to high-single digit percentage rate decline) |
1 Outlook 2023 is based on the assumptions outlined in the earnings release for the fourth quarter and full year of 2022 and excludes special items. Special items include costs related to the FME25 program, Legal Form Conversion Costs, Legacy Portfolio Optimization, Humacyte Investment Remeasurement and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. The growth rates are based on the results 2022 excluding the costs related to the FME25 program (€204 M for operating income), Net Gain Related to InterWell Health ( -€56 M for operating income), Humacyte Investment Remeasurement (€103 M for operating income), Hyperinflation in Turkiye (€5 M for operating income) and the Impacts Related to the War in Ukraine (€49 M for operating income). Additionally, the results 2022 were adjusted for the Provider Relief Funding (-€277 M for operating income).
Outlook 2023 | page 9 of 9 | August 2, 2023 |