Fresenius Se & Co. Kgaa · XETR:FRE
Fresenius Se & Co. Kgaa — Investor Presentation (March 2019)
41 slides from Fresenius Se & Co. Kgaa's investor presentation, March 2019
Slide 1: Company Presentation
Company Presentation March 2019 Frankfurt stock exchange: FRE │ US ADR program: FSNUY │ www.fresenius.com/investors
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive
Slide 3: A Global Leader In HealthCare Products And Services
A Global Leader In HealthCare Products And Services ~€33.5 bn in Sales Global presence in (as of Dec. 31, 2018) 100+ countries Total Shareholder Return: 10-year CAGR: ~15% Strong portfolio 275,000+ employees of products (30% of sales) worldwide and services (70% of sales) (as of December 31, 2018) C
Slide 4: Strong and Balanced Health Care Portfolio
Strong and Balanced Health Care Portfolio Ownership: ~31% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Hospital Supplies Hospital Operation Projects and Services for Health Care Services Hospitals • Dialysis services • IV drugs • Acute care • Post-acute care • Hemodialysis produc
Slide 5: Total Shareholder Return – CAGR, Rounded
Total Shareholder Return – CAGR, Rounded 10 years 15 years 20 years 15% 14% 13% 12% 10% 9% 8% 8% 7% 6% 6% 4% DAX S&P 500 Fresenius MSCI World Fresenius DAX S&P 500 Fresenius MSCI World Fresenius DAX S&P 500 MSCI World Fresenius Fresenius Health Care Health Care Health Care Source: Bloomberg; dividen
Slide 6: Fresenius Group Consistent Cash Generation
Fresenius Group Consistent Cash Generation CFFO margin FCF margin (before acquisitions & dividends) % % 14 10 13 12.6 12.2 7.4 7.6 12.0 12.0 8 11.4 11.6 6.7 6.7 6.6 12 11.2 6.3 6.2 11.0 5.6 11 6 5.2 5.0 10.9 10 10.3 4 8.7 2.7 9 8 2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 201
Slide 7: Fresenius Medical Care: Global Dialysis Market Leader
Fresenius Medical Care: Global Dialysis Market Leader • The world’s leading provider of dialysis products Market Dynamics and services treating more than 330,000 patients1 in ~3,900 clinics1 Global Dialysis Market 2018: • Provide highest standard of product quality and • ~€71 bn • ~6% patient growth
Slide 8: Fresenius Kabi: A Leading Global Hospital Supplier
Fresenius Kabi: A Leading Global Hospital Supplier • Comprehensive product portfolio for critically and Market Dynamics chronically ill patients • Strong Emerging Markets presence Global Addressable Market 2018: • Leading market positions in four product • ~€81 bn segments Growth Drivers: • Patent e
Slide 9: Fresenius Helios: Europe's Largest Private Hospital Operator – Helios Germany
Fresenius Helios: Europe’s Largest Private Hospital Operator Helios Germany • ~5%1 share in German acute care hospital Market Dynamics market • Organic growth based on growing number of German Acute Care Hospital Market: admissions and reimbursement rate increases • ~€102 bn2 • Ranks as quality lead
Slide 10: Fresenius Helios: Europe's Largest Private Hospital Operator – Helios Spain
Fresenius Helios: Europe’s Largest Private Hospital Operator Helios Spain • ~€3.0 bn sales in 2018 Market Dynamics • ~12%1 share in Spanish private hospital market Spanish Private Hospital Market: • Market leader in size and quality with excellent • ~€14 bn2 growth prospects Growth Drivers: • Broad
Slide 11: Fresenius Vamed: Leading Global Hospital Projects and Services Specialist
Fresenius Vamed: Leading Global Hospital Projects and Services Specialist • Manages hospital construction/expansion Market Dynamics projects and provides services for health care facilities worldwide Growth Drivers: • Offers project development, planning, turnkey • Emerging Market demand for buildin
Slide 12: Fresenius Group: 2019 Financial Outlook by Business Segment
Fresenius Group: 2019 Financial Outlook by Business Segment €m (except otherwise stated) FY/18 Base FY/19e1 Sales growth (org) 6,544 3% - 6% EBIT growth (cc) 1,1392 3% - 6% Sales growth (org) 8,993 2% - 5% EBIT growth 1,052 -5% to -2% Sales growth (org) 1,688 ~10% EBIT growth 110 15% - 20% 1 Excludi
Slide 13: Fresenius Group: 2019 Financial Guidance
Fresenius Group: 2019 Financial Guidance €m (except otherwise stated) FY/18 Base1 FY/192 Sales growth (cc) 33,009 3% - 6% Net income3 growth (cc) 1,872 ~0% 1 Before special items and after adjustments 2 Excluding transaction-related expenses, expenses associated with the cost optimization program at
Slide 14: FY/18 base for Fresenius Group Guidance FY/19
FY/18 base for Fresenius Group Guidance FY/19 €m Sales reported 33,530 Divestitures of Care Coordination activities at FMC (H1/18) -521 Sales basis for growth rates 33,009 Net Income reported 2,027 Transaction Costs, Akorn, Biosimilars 25 Bridge Financing Costs Akorn 12 Revaluations of Biosimilars c
Slide 15: Fresenius Group: FY/18 Targets Delivered, 26th Dividend Increase
Fresenius Group ● Delivered on FY/18 Group targets ● 26th consecutive dividend increase proposed ● Significant investments into medium-term growth in FY/18 and FY/19 ● Fresenius Kabi expected to show continued growth in FY/19 ● Helios Germany impacted by regulatory changes and initiatives to secure
Slide 16: Fresenius Kabi: Significant investments
Fresenius Kabi: Significant investments IV Generics • ~US$350 million investment in Melrose Park, USA Installation of state-of-the-art sterile pharmaceutical production, packaging technologies and related laboratories • ~ US$120 million investment in Grand Island, USA, New production lines and o
Slide 17: Fresenius Kabi: US Generic IV Drug Market in FY/19
Fresenius Kabi: US Generic IV Drug Market in FY/19 2019 pricing environment expected to be Excellent competitive position - strong in line with recent years customer relationships and pipeline • Key molecules to see more competition, • FDA accelerated approvals of generics – however broadly unchange
Slide 18: Helios Germany: Improved visibility
Helios Germany: Improved visibility Active management of regulatory New business models challenges by adjusting structures • Develop internationally scalable business models • Clustering (to fulfill minimum number of • New business areas for Germany (e.g. video indications) consulting, occupational
Slide 19: Helios Spain: Continued dynamic growth
Helios Spain: Continued dynamic growth Growth projects Innovative projects • Acquisition Clínica Medellin, Colombia • Proton Therapy Center Closing expected in Q1/19 First proton therapy center in Spain with a total investment of €40 million ~€50 million investment Construction project is on
Slide 20: Financial Review FY/18
Financial Review FY/18 Company Presentation March 2019 © Fresenius SE & Co. KGaA Investor Relations 20
Slide 21: Fresenius Group: Q4/18 & FY/18 Profit and Loss Statement
Fresenius Group: Q4/18 & FY/18 Profit and Loss Statement €m Q4/18 Δ YoY cc FY/18 Δ YoY cc Sales 8,835 7%1 33,530 6%1 EBIT 1,250 0% 4,561 -1%/1%2 EBIT (excl. biosimilars) 1,303 0% 4,727 1%/3%2 Net interest -129 12% -570 7% Income taxes -253 17% -880 21% Net income 504 5% 1,871 7% Net income (excl. bi
Slide 22: Fresenius Group: Q4/18 Business Segment Growth
Fresenius Group: Q4/18 Business Segment Growth Organic sales growth EBIT growth (cc) +6% 12%2 +7% 6%/8%3 +4% -2%/2%4 +20% 39%/11%4 +6%1 0%2/0%2,3 1 Growth rates adjusted for IFRS 15 adoption and divestitures of Care Coordination activities 2 EBIT reported 3 Excl. biosimilars 4 Adjusted for transfer
Slide 23: Fresenius Kabi: Expected Organic Sales Growth 2019
Fresenius Kabi: Expected Organic Sales Growth 2019 North America Low to mid-single-digit growth • Growth in 2019 mainly driven by new drug launches and further ramp-up of pre-filled syringe business • More competition for key molecules; broadly unchanged pricing environment in base business • Contin
Slide 24: Fresenius Kabi: Expected Organic Sales Growth 2019
Fresenius Kabi: Expected Organic Sales Growth 2019 Emerging Markets Likely double-digit growth China: • Attractive growth prospects • Growth particularly driven by Clinical Nutrition and IV drugs Asia-Pacific ex China: • Very positive sentiment Latin America/Africa: • Strong growth momentum expected
Slide 25: Fresenius Kabi: Q4 & FY/18 EBIT Growth
Fresenius Kabi: Q4 & FY/18 EBIT Growth €m Q4/18 Δ YoY cc FY/18 Δ YoY cc North America 216 9% 894 10% Margin 36.1% 110 bps 37.9% 70 bps Europe 97 -9% 355 3% Margin 16.4% -210 bps 15.8% -10 bps Asia-Pacific/Latin America/Africa 116 22% 398 14% Margin 23.3% 140 bps 20.5% 40 bps Corporate and Corporate
Slide 26: Fresenius Helios
Fresenius Helios Helios Germany Helios Spain • Organic sales growth of 3% in Q4/18 – • Strong sales growth of 8% in Q4/18 DRG price increases and better results from • Additional month of consolidation the negotiations with our payors offset contributed significantly to 17% sales decline in admissio
Slide 27: Fresenius Helios: Q4 & FY/18 Key Financials
Fresenius Helios: Q4 & FY/18 Key Financials €m Q4/18 Δ YoY FY/18 Δ YoY Total sales 2,231 -1%/4%2 8,993 4%/6%2 Thereof Helios Germany 1,439 -5%/3%2 5,970 -2%/2%2 Thereof Helios Spain1 792 8% 3,023 17% Total EBIT 277 -2%/2%2 1,052 0%/3%2 Margin 12.4% -20 bps 11.7% -40 bps Thereof Helios Germany 137 -2
Slide 28: Fresenius Vamed
Fresenius Vamed • Both business segments contributed to the €m Q4/18 Δ YoY FY/18 Δ YoY excellent organic sales growth of 16% in Total sales 697 45% 1,688 37% FY/18 22%1 19%1 • Sales share of more stable and high Thereof margin service business clearly outstrips organic sales 20% 16% project business
Slide 29: Fresenius Group: Cash Flow
Fresenius Group: Cash Flow Operating CF Capex (net) Free Cash Flow1 €m Q4/18 LTM Margin Q4/18 LTM Margin Q4/18 LTM Margin 220 15.9% -201 -8.5% 19 7.4% 167 6.2% -176 -4.9% -9 1.3%2 108 6.3% -15 -1.7% 93 4.6% Corporate/Other 0 n.a. -28 n.a. -28 n.a. Excl. FMC 495 10.4%3 -420 -6.3% 75 4.1%3 Q4/18 1,193
Slide 30: Attachments
Attachments Company Presentation March 2019 © Fresenius SE & Co. KGaA Investor Relations 30
Slide 31: Fresenius Group: Calculation of Noncontrolling Interest
Fresenius Group: Calculation of Noncontrolling Interest €m FY/18 FY/17 Earnings before tax and noncontrolling interest 3,991 4,178 Taxes -880 -1,168 Noncontrolling interest, thereof -1,240 -1,194 Fresenius Medical Care net income not attributable to -925 -864 Fresenius (FY/18: ~69%) Noncontrolling i
Slide 32: Fresenius Group: Cash Flow
Fresenius Group: Cash Flow €m Q4/18 LTM Margin Δ YoY Operating Cash Flow 1,193 11.2% 7% Capex (net) -721 -6.2% -22% Free Cash Flow 472 5.0% -10% (before acquisitions and dividends) Acquisitions (net) -198 Dividends -72 Free Cash Flow 202 4.1% -70% (after acquisitions and dividends) Company Presentat
Slide 33: Group: Leverage Ratio
Fresenius Group: Leverage Ratio 4,00 4.0 Net Debt/EBITDA target 2019 Broadly on the level2 of year-end 2018 3.5 3,50 3.22 3.02 3.02 3 2.98 2.96 3 3 3,00 3.0 2.91 3.00 2.97 2.98 2.84 2.80 2.75 2.71 2.67 2.65 2,50 2.5 2.59 2.55 2.53 2.33 2,00 2009 2010 2011 2012 2013 1 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2
Slide 34: Fresenius Kabi: Organic Sales Growth by Regions
Fresenius Kabi: Organic Sales Growth by Regions Δ YoY Δ YoY €m Q4/18 organic FY/18 organic North America 599 5% 2,359 8% Europe 590 3% 2,248 3% Asia-Pacific/Latin 498 15% 1,937 12% America/Africa Asia-Pacific 336 13% 1,300 12% Latin America/Africa 162 18% 637 13% Total sales 1,687 7% 6,544 7% Compan
Slide 35: Fresenius Kabi: Organic Sales Growth by Product Segment
Fresenius Kabi: Organic Sales Growth by Product Segment Δ YoY Δ YoY €m Q4/18 organic FY/18 organic IV Drugs 710 5% 2,735 5% Infusion Therapy 226 1% 929 7% Clinical Nutrition 458 15% 1,796 13% Medical Devices/ 293 5% 1,084 4% Transfusion Technology Total sales 1,687 7% 6,544 7% Company Presentation M
Slide 36: Fresenius Helios: Key Measures
Fresenius Helios: Key Measures FY/18 FY/17 Δ No. of hospitals Germany 86 111 -23% - Acute care hospitals 83 88 -6% No. of hospitals Spain 47 45 4% (Hospitals) No. of beds Germany 29,329 34,610 -15% - Acute care hospitals 28,802 29,438 -2% No. of beds Spain 7,019 6,652 6% (Hospitals) Admissions Germa
Slide 37: Fresenius Group: Reconciliation
Fresenius Group: Reconciliation growth rate €m FY/18 FY/17 growth rate (cc) Sales reported 33,530 33,886 -1% 2% Adjustments from IFRS 15 - -486 Divestitures of Care Coordination activities (H2/2017) at - -559 Fresenius Medical Care (FMC) Sales basis for growth rates 33,530 32,841 2% 6% EBIT reported
Slide 38: Fresenius Group: Reconciliation
Fresenius Group: Reconciliation growth rate €m FY/18 FY/17 growth rate (cc) Income taxes reported (after special items) -950 -889 -7% -11% Transaction Costs Akorn, biosimilars -10 -9 Bridge Financing Costs Akorn -5 -4 Revaluations of biosimilars contingent liabilities -2 - Impact of FCPA related cha
Slide 39: Fresenius Group: Reconciliation
Fresenius Group: Reconciliation growth rate €m FY/18 FY/17 growth rate (cc) Net income reported (after special items) 2,027 1,814 12% 15% Transaction Costs Akorn, biosimilars 25 32 Bridge Financing Costs Akorn 12 11 Revaluations of biosimilars contingent liabilities 5 - Impact of FCPA related charge
Slide 40: Group: 26th Consecutive Dividend Increase
Fresenius Group: 26th Consecutive Dividend Increase CAGR +16% 0.75 0.801 0.62 0.55 0.32 0.37 0.42 0.44 € 0.29 0.23 0.25 0.22 0.19 0.16 0.02 '93 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Dividend growth aligned to EPS growth Pay-out ratio: 24% 1 Proposal Company Presentation March 2019
Slide 41: Financial Calendar / Contact
Financial Calendar / Contact Financial Calendar 02 May 2019 Results Q1/19 17 May 2019 Annual General Meeting 30 July 2019 Results Q2/19 29 October 2019 Results Q3/19 Please note that these dates could be subject to change. Contact Investor Relations Fresenius SE & Co. KGaA phone: +49 6172 608-2485 e
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