Fresenius Medical Care Ag · XETR:FME

Fresenius Medical Care — Q1 2021 Earnings Presentation

27 slides from Fresenius Medical Care's earnings presentation, May 6, 2021

  1. Slide 1: Q1 2021 Conference Call

    Q1 2021 CONFERENCE CALL MAY 6, 2021 Rice Powell – CEO Helen Giza – CFO © Copyright

  2. 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. Forward-looking statements are inherently subject to risks and uncert

  3. Slide 3: Agenda

    1 BUSINESS UPDATE 2 FINANCIALS & OUTLOOK AGENDA 3 Q&A

  4. Slide 4: Q1 2021 | Solid results despite effects from COVID-19

    Q1 2021 | SOLID RESULTS DESPITE EFFECTS FROM COVID-19 > Organic volume growth impacted by COVID-19, as expected > Q1 results adversely affected by exchange rates > Business development supported by improved payor mix driven by Medicare Advantage > Earnings development supported by phasing and expect

  5. Slide 5: Quality on a consistently high level

    Q1 2021 | QUALITY ON A CONSISTENTLY HIGH LEVEL +3% Clinics (1%) Patients 4,110 344,476 Quality remains (1%) Treatments on a consistently 13,004,009 high level As of March 31, 2021 © │ Conference Call │ Q1 2021 05/06/2021 Page 5

  6. Slide 6: Q1 2021 | Prioritizing patient care

    Q1 2021 | PRIORITIZING PATIENT CARE NORTH AMERICA EMEA LATIN AMERICA ASIA-PACIFIC % of patients Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Kt/V ≥ 1.2 97 97 93 94 91 90 93 94 Hemoglobin = 10–12 g/dl 69 70 81 82 48 50 50 55 Calcium = 8.4–10.2 mg/dl 81 80 78 79 74 75 71 74 Albumin

  7. Slide 7: Confirmed COVID-19 cases since January 2020

    CONFIRMED COVID-19 CASES SINCE JANUARY 2020 GLOBAL | COVID-19 CASES FME | COVID-19 CASES GLOBALLY Vaccination of around 51 6.000.000 3.000 percent of patients at least with first dose 5.000.000 2.500 4.000.000 2.000 3.000.000 1.500 2.000.000 1.000 1.000.000 500 0 0 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21

  8. Slide 8: Sequential decline of excess mortality globally

    SEQUENTIAL DECLINE OF EXCESS MORTALITY GLOBALLY QUARTERLY EXCESS MORTALITY VS. 2019 BASE 4,000 4.000 3,705 3,500 3.500 2,934 3,040 3,000 3.000 2,739 Last twelve months 2,500 2.500 excess deaths due 2,000 2.000 to COVID-19 were 12,418 1,500 1.500 1,001 1,000 1.000 500 500 0 0 Q1 Q2 Q3 Q4 Q1 2020 2021

  9. Slide 9: Q1 2021 | Solid Q1 in light of strong headwinds

    Q1 2021 | SOLID Q1 IN LIGHT OF STRONG HEADWINDS Q1 2021 Q1 2020 Growth Growth € million € million in % in %cc ▪ COVID-19 with Revenue 4,210 4,488 (6) 1 continued negative effect on top-line and bottom-line growth Operating income 474 555 (15) (8) ▪ Headwinds from FX translation ▪ Favorable impact on

  10. Slide 10: Q1 2021 | Positive organic growth

    Q1 2021 | POSITIVE ORGANIC GROWTH NORTH AMERICA € million Revenue 2,899 (9%) NORTH AMERICA Organic growth (1%) EMEA 69% 16% EMEA 4,210 € million €m ASIA-PACIFIC Revenue 670 (1%) 11% +1% Organic growth 1% (Organic) ASIA-PACIFIC € million LATIN AMERICA 4% Revenue 471 6% Organic growth 11% ▪ Unfavorabl

  11. Slide 11: Services | Negative effects from FX and COVID-19

    Q1 2021 SERVICES | NEGATIVE EFFECTS FROM FX AND COVID-19 Same market Organic Q1 2021 Q1 2020 Growth Growth treatment growth € million € million in % in %cc in % growth Drivers Revenue in % + Contributions from Health Care Services 3,325 3,595 (7) 1 1 (2) acquisitions North America 2,643 2,908 (9) (1

  12. Slide 12: Products | Organic growth continued

    Q1 2021 PRODUCTS | ORGANIC GROWTH CONTINUED Organic Q1 2021 Q1 2020 Growth Growth € million € million in % in %cc growth Revenue in % Drivers Health Care Products 885 893 (1) 4 5 + Higher sales of North America 256 278 (8) 0 0 machines for chronic treatment EMEA 338 338 0 2 2 + PD product sales Asia

  13. Slide 13: Agenda

    1 BUSINESS UPDATE 2 FINANCIALS & OUTLOOK AGENDA 3 Q&A

  14. Slide 14: Q1 2021 | COVID-19 effect weighing on profitability

    Q1 2021 | COVID-19 EFFECT WEIGHING ON PROFITABILITY Operating income in €m and margins in % Q1 operating income drivers 18.1% 4.2% ‒ Unfavorable impacts related to COVID-19 11.9% 7 85 97 11.3% ‒ Higher personnel expense across all regions 13.7% ‒ FX translation 80 ‒ Positive prior-year effect from d

  15. Slide 15: Q1 2021 | Net leverage remains stable

    Q1 2021 | NET LEVERAGE REMAINS STABLE Q1 2021 Q1 2020 € million € million Operating cash flow 208 584 in % of revenue 4.9 13.0 Capital expenditures, net (179) (280) Free cash flow 29 304 Free cash flow after investing activities (16) 272 NET LEVERAGE RATIO (NET DEBT/EBITDA)1 Current ratings5 S&P Moo

  16. Slide 16: 2021 targets confirmed

    2021 TARGETS CONFIRMED Assumptions: REVENUE NET INCOME • Excess mortality to continue to (constant currency (constant currency accumulate in the first half of 2021 growth in %) decline in %) • COVID-19-related additional costs in the Dialysis Services business to remain on + - • high level Besides t

  17. Slide 17: Your Questions Are Welcome!

    ad ~ FRESENIUS MEDICAL CARE ) Your Questions Are Welcome!

  18. Slide 18: Q1 2021 | Profit and loss

    Q1 2021 | PROFIT AND LOSS Q1 2021 Q1 2020 Growth Growth € million € million in % in %cc Revenue 4,210 4,488 (6) 1 Operating income 474 555 (15) (8) Operating income margin in % 11.3 12.4 Net interest expense 76 104 (27) (22) Income before taxes 398 451 (12) (5) Income tax expense 94 100 (7) 0 Tax ra

  19. Slide 19: Debt

    DEBT RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES Q1 2021 FY 2020 FY 2019 € million € million € million Debt Short term debt from unrelated parties 1,127 63 1,150 + Short term debt from related parties 14 17 22 + Current portion of long-term d

  20. Slide 20: EBITDA

    EBITDA RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA AND NET LEVERAGE RATIO TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES Q1 2021 LTM FY 2020 FY 2019 € million € million € million Net income 1,390 1,435 1,439 + Income tax expense 494 501 402 − Interest income (48) (42) (62) + Interest expen

  21. Slide 21: 2020 base for targets 2021, reconciliation adjustments

    2020 BASE FOR TARGETS 2021, RECONCILIATION ADJUSTMENTS FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 € million € million € million € million € million Revenue 17,859 4,488 4,557 4,414 4,400 Net income excl. special items 1,359 283 351 354 372 RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIREC

  22. Slide 22: Return on invested capital (ROIC)

    RETURN ON INVESTED CAPITAL (ROIC) ▪ Long-term value 12.4% rep. creation based on accretive acquisitions and organic growth ▪ 2018 positive impact from Sound 8.6% divestiture 7.8% 8.0% adj. 8.0% adj. ▪ 2019 negative 7.1% 6.6% excl. special item impact from 6.4% excl. special item NxStage acquisition

  23. Slide 23: Exchange rates, U.S. dialysis days per quarter, definitions

    EXCHANGE RATES, U.S. DIALYSIS DAYS PER QUARTER, DEFINITIONS EXCHANGE RATES U.S. DIALYSIS DAYS PER QUARTER Euro vs. Q1 2021 Q1 2020 FY 2020 Q1 Q2 Q3 Q4 Full year €:$ Period end 1.205 1.096 1.227 2021 77 78 79 79 313 Average 1.173 1.103 1.142 2020 77 78 79 79 313 2019 76 78 79 80 313 €:CNY Period end

  24. Slide 24: Q1 2021 | Patients, treatments, clinics

    Q1 2021 | PATIENTS, TREATMENTS, CLINICS Patients Treatments Clinics Patients Treatments Clinics as of March 31, as of March 31, as of March 31, as of March 31, as of March 31, as of March 31, 2021 2021 2021 2020 2020 2020 North America 209,279 7,926,555 2,655 213,221 8,096,332 2,597 Growth in % (2)

  25. Slide 25: 2021 | Simplification of reporting going forward

    2021 | SIMPLIFICATION OF REPORTING GOING FORWARD FY 2020 FY 2019 Growth FY 2020 FY 2019 Growth € million € million in % € million € million in % Revenue Revenue Health Care Services 14,114 13,872 2 Health Care Services 14,114 13,872 2 North America 11,364 11,157 2 North America 11,364 11,157 2 of wh

  26. Slide 26: Financial calendar 2021

    FINANCIAL CALENDAR 2021 REPORTING DATES & AGM May 20 Annual General Meeting 2021 (Virtual) July 30 Q2 2021 Earnings Release and Conference Call November 2 Q3 2021 Earnings Release and Conference Call CONFERENCES & MEET THE MANAGMENT May 11-13 Bank of America Merrill Lynch Global Healthcare Conferenc

  27. Slide 27: Contacts

    CONTACTS DR. DOMINIK HEGER ROBERT ADOLPH FME INVESTOR Head of Investor Relations, Strategic Vice President RELATIONS Development & Communications | EVP Investor Relations Else-Kröner-Str. 1 61352 Bad Homburg v.d.H. +49(0) 6172-609-2601 +49(0) 6172-609-2477 Germany dominik.heger@fmc-ag.com robert.ado

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