Fresenius Medical Care Ag · XETR:FME
Fresenius Medical Care — Q1 2017 Earnings Presentation
30 slides from Fresenius Medical Care's earnings presentation, May 3, 2017
Slide 1: Q1 2017 Conference call
Q1 2017 Conference call | May 3, 2017 Rice Powell - CEO Mike Brosnan - CFO © │ Conference Call │ Q1 2017 1
Slide 2: Safe harbor statement
Safe harbor statement: This presentation includes certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Act of 1934, as amended. The Company has based these forward-looking statements on current est
Slide 3: Agenda – Q1 2017
AGENDA – Q1 2017 Business update 1 Financials & outlook 2 Q&A 3 © │ Conference Call │ Q1 2017 3
Slide 4: Global footprint in Q1 2017
Global footprint in Q1 2017 Every 0.7 seconds Employees we provide a dialysis treatment +6% Treatments +4% Patients +6% Clinics +6% 110,530 11,744,442 310,473 3,654 © │ Conference Call │ Q1 2017 4
Slide 5: Excellent start to the year
Excellent start to the year Q1 2017 Q1 2016 Growth Growth € million € million in % in %cc Revenue 4,548 3,916 16 12 Revenue 4,448 3,916 14 10 (excl. VA agreement)1 Operating profit (EBIT) 651 497 31 28 EBIT 552 497 11 8 (excl. VA agreement)1 Net income2 308 213 45 41 Net income2 249 213 17 14 (excl.
Slide 6: Strong top-line growth across all regions
Strong top-line growth across all regions North America1 € million EMEA € million Revenue1 3,275 +14% Revenue 614 +7% Organic growth +9% Organic growth +2% Asia-Pacific € million Latin America € million Revenue 378 +11% Revenue 177 +28% Organic growth +6% Organic growth +17% 4% Latin America 8% Asia
Slide 7: Health Care Services continue to perform well
Health Care Services continue to perform well Same Organic market Q1 2017 Q1 2016 Growth Growth growth growth Revenue € million € million in % in %cc in % in % Total Health Care1 3,669 3,199 15 11 9 3 North America1 3,065 2,671 15 11 10 3 of which Care Coordination 691 499 39 34 27 - EMEA 303 273 11
Slide 8: Quality outcomes remain stable
Quality outcomes remain stable North America EMEA Latin America1 Asia-Pacific1 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 % of patients 2017 2016 2017 2016 2017 2016 2017 2016 Kt/V ≥ 1.2 98 98 95 96 92 91 96 97 No catheter (>90 days) 84 84 81 81 81 82 89 91 Hemoglobin = 10 – 12 g/dl 73 73 80 78 51 52 59 60 Hemoglobin
Slide 9: Dialysis Products show good demand
Dialysis Products show good demand Q1 2017 Q1 2016 Growth Growth € million € million in % in %cc Total Health Care Products 779 717 8 6 Dialysis Products 758 704 8 5 North America 210 191 9 6 EMEA 290 286 1 1 Asia-Pacific 209 187 11 8 Latin America 45 37 23 6 Non-Dialysis Products 21 13 63 63 73%
Slide 10: Cura acquisition successfully closed
Cura acqusition successfully closed On April 28, 2017, Fresenius Medical Care successfully closed the acquisition of a majority stake (70%) in Cura as announced in February. All shareholders approved the acquisition. Cura is consolidated as of end of April 2017 and will be reported in the segm
Slide 11: Q1 2017 highlights
Q1 2017 highlights All regions contributed to strong first quarter performance Value-based care programs continue to develop successfully: first revenues booked for BPCI1 program ESCO2 ramp-up fully on track Cura acquisition successfully closed on April 28, 2017 1 Bundled Payments for Care I
Slide 12: Agenda – Q1 2017
AGENDA – Q1 2017 Business update 1 Financials & outlook 2 Q&A 3 © │ Conference Call │ Q1 2017 12
Slide 13: Solid earnings development in Q1 2017
Solid earnings development in Q1 2017 Excl. VA agreement Q1 2017 Q1 2016 Growth Q1 2017 Q1 2016 Growth € million € million in % € million € million in % Net revenue 4,548 3,916 16 4,448 3,916 14 Operating income 651 497 31 552 497 11 (EBIT) EBIT-margin in % 14.3 12.7 160bp 12.4 12.7 (30bp) Net inter
Slide 14: Q1 revenue and net income reconciliation
Q1 revenue and net income reconciliation Revenue in € million 4,548 100 4,304 144 +2.6% +3.7% 388 3,916 +9.9% Q1 2016 Business Q1 2017 (cc, FX VA agreement Q1 2017 growth (cc) excl. VA) 308 Net income in € million 59 244 5 213 31 +2.6% +27.7% +14.3% Q1 2016 Business Q1 2017 (cc, FX VA agreement Q1 2
Slide 15: Q1 2017 – regional margin profile
Q1 2017 – regional margin profile North America (71% of EBIT1) Stable margin in dialysis business, despite 427 one dialysis day less in Q1 2017 402 Positive impact from improved payor mix, 14.0% 13.0% lower cost for health care supplies and realization of BPCI revenues Positive development aff
Slide 16: Q1 2017 – regional margin profile
Q1 2017 – regional margin profile Asia-Pacific (11% of EBIT1) EBIT margin increase mainly driven by 82 improved revenue mix 59 21.7% Positive base effect (prior year’s cost impact from changes in Management 17.5% Board) Q1 2016 Q1 2017 Diagrams: different scales applied Latin America (2% of EBIT
Slide 17: Q1 cash flow impacted by seasonality in invoicing
Q1 cash flow impacted by seasonality in invoicing Q1 20171 Q1 2016 Days sales outstanding (DSO) at 73 days worldwide. in € million in € million Operating cash flow 170 163 in % of revenue 3.7 4.2 Capital expenditures, net (195) (223) Free cash flow (25) (60) Free cash flow, after acquisitions and in
Slide 18: Outlook 2017 confirmed
Outlook 2017 confirmed Guidance 2017 2016 base (IFRS/€m) Revenue growth 8 to 10% 16,570 Net income growth 7 to 9% 1,144 Assumptions: Numbers at constant currency Guidance 2017 excluding effect from agreement with United States Departments of Veterans Affairs and Justice Net income refers to ne
Slide 19: Agenda – Q1 2017
AGENDA – Q1 2017 Business update 1 Financials & outlook 2 Q&A 3 © │ Conference Call │ Q1 2017 19
Slide 20: Your questions are welcome
Your questions are welcome Conference call | May 3, 2017 Rice Powell - CEO Mike Brosnan - CFO © │ Conference Call │ Q1 2017 20
Slide 21: Attachment 1
Attachment 1 Reconciliation of non-IFRS financial measures to the most comparable IFRS measure € million Debt FY 2015 FY 2016 Q1 2017 Short term debt 101 572 697 + Short term debt from related parties 18 3 119 + Current portion of long-term debt and 610 724 715 capital lease obligations + Long-term
Slide 22: Attachment 2
Attachment 2 Reconciliation of non-IFRS financial measures to the most comparable IFRS measure € million Cash Flow Q1 2016 Q1 2017 Acquisitions, investments and net purchases of (83) (160) intangible assets + Proceeds from divestitures - - = Acquisitions and investments, net of divestitures (83) (16
Slide 23: Attachment 3
Attachment 3 Reconciliation of non IFRS financial measures to the most directly comparable IFRS financial measures Operating performance excluding VA agreement – basis for guidance 2017 € million Q1 2016 Q1 2017 Revenue 3,916 4,548 VA agreement - (100) Revenue excluding VA agreement 3,916 4,448 Oper
Slide 24: Day sales outstanding (DSO)
Day sales outstanding (DSO) in days 160 140 Latin America 120 EMEA 100 Asia-Pacific 80 71 71 71 74 70 72 70 73 TOTAL 60 North America 40 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 The sequential DSO increase in the North America Segment is largely due to seasonality in invoici
Slide 25: Q1 2017 - patients, treatments, clinics
Q1 2017 - patients, treatments, clinics Patients Treatments Clinics as of Mar. 31, 2017 Q1 2017, in million as of Mar. 31, 2017 North America 190,480 7.2 2,323 Growth in % 4 3 4 EMEA 60,168 2.3 722 Asia-Pacific 29,639 1.0 377 Latin America 30,186 1.2 232 Total 310,473 11,744,442 3,654 Growth in % 6
Slide 26: U.S. dialysis days per quarter
U.S. dialysis days per quarter Q1 Q2 Q3 Q4 Full year 2015 76 78 79 79 312 2016 78 78 79 79 314 2017 77 78 79 79 313 © │ Conference Call │ Q1 2017 26
Slide 27: Exchange rates
Exchange rates Q1 2016 FY 2016 Q1 2017 €:$ Period end 1.1385 1.0541 1.0691 Average 1.1020 1.1069 1.0648 €:CNY Period end 7.3514 7.3202 7.3642 Average 7.2101 7.3522 7.3353 €:RUB Period end 76.3051 64.300 60.3130 Average 82.4506 74.1446 62.5218 €:ARS Period end 16.6703 16.7182 16.4188 Average 15.9229
Slide 28: Constant currency
Constant currency: Changes in revenue, operating income, net income attributable to shareholders of FMC AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We use the non-IFRS financial measure “at constant exchange rates” or constant currency in our filin
Slide 29: Financial calendar
Financial calendar1 May 11, 2017 Annual General Meeting, Frankfurt June 8, 2017 Capital Markets Day, Frankfurt August 1, 2017 Report on 2nd quarter 2017 June 13, 2017 Goldman Sachs Global Healthcare Conference, Rancho Palos Verdes June 14, 2017 Roadshow Chicago June 14, 2017 Deutsche Bank Europ. Lev
Slide 30: Contacts
Contacts FME Investor Relations Ticker: FME or FMS (NYSE) Else-Kröner-Str. 1 WKN: 578 580 61352 Bad Homburg v.d.H. ISIN: DE00057858002 Germany Dr. Dominik Heger Head of Investor Relations and Corporate Communications Tel: +49–(0) 6172–609–2601 Email: dominik.heger@fmc-ag.com Robert Adolph Direct
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