Fresenius Medical Care Ag · XETR:FME

Fresenius Medical Care — Q2 2021 Earnings Presentation

31 slides from Fresenius Medical Care's earnings presentation, Jul 30, 2021

  1. Slide 1: Q2 2021 Conference Call

    Q2 2021 CONFERENCE CALL JULY 30, 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: Q2 2021 | Development as expected

    Q2 2021 | DEVELOPMENT AS EXPECTED > COVID-19 pandemic continued to impact organic growth > Accumulation of patient excess mortality continued in Q2 but significantly reduced > In addition, phasing and strong prior-year base impacted earnings > Negative exchange rate effects > Financial targets 2021

  5. Slide 5: H1 2021 | High treatment quality remains key

    H1 2021 | HIGH TREATMENT QUALITY REMAINS KEY +2% Clinics (1%) Patients 4,125 345,646 Quality remains (1%) Treatments on a consistently 26,212,741 high level As of June 30, 2021 © │ Conference Call │ Q2 2021 07/30/2021 Page 5

  6. Slide 6: Q2 2021 | Delivering high quality patient care

    Q2 2021 | DELIVERING HIGH QUALITY PATIENT CARE NORTH AMERICA EMEA LATIN AMERICA ASIA-PACIFIC % of patients Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Kt/V ≥ 1.2 97 97 93 93 94 90 94 94 Hemoglobin = 10–12 g/dl 72 73 82 82 49 46 51 52 Calcium = 8.4–10.2 mg/dl 81 81 77 77 74 75 71

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

    CONFIRMED COVID-19 CASES SINCE JANUARY 2020 GENERAL POPULATION CASES GLOBALLY FME PATIENT CASES GLOBALLY Vaccination of approx. 71 percent of patients at 900,000 900.000 3.000 3,000 least with first dose. 800,000 800.000 2.500 2,500 700,000 700.000 600,000 600.000 2.000 2,000 500,000 500.000 1.500 1

  8. Slide 8: Sequential decline of excess mortality globally

    SEQUENTIAL DECLINE OF EXCESS MORTALITY GLOBALLY QUARTERLY EXCESS MORTALITY VS. 2019 BASE 3,705 LTM ▪ Significant reduction in 2,934 3,100 COVID-19-related 2,739 excess deaths ▪ LTM excess mortality amounts 1,489 to 11,228 1,001 ▪ Total number of excess deaths vs. 2019 base since Q1 2020 amounts to 1

  9. Slide 9: Q2 2021 | Earnings declined as anticipated

    Q2 2021 | EARNINGS DECLINED AS ANTICIPATED Q2 2021 Q2 2020 Growth Growth € million € million in % in %cc Revenue 4,320 4,557 (5) 2 ▪ COVID-19 adversely impacted revenue and earnings Operating income 424 656 (35) (30) development ▪ Continued Operating income headwinds from FX 430 656 (34) (29) excl.

  10. Slide 10: Q2 2021 | Organic growth despite COVID-19

    Q2 2021 | ORGANIC GROWTH DESPITE COVID-19 NORTH AMERICA € million Revenue 2,953 (9%) NORTH AMERICA Organic growth (1%) EMEA 69% 16% EMEA 4,320 € million €m ASIA-PACIFIC Revenue 693 1% 11% +1% Organic growth 2% (Organic) ASIA-PACIFIC € million LATIN AMERICA 4% Revenue 486 8% Organic growth 10% ▪ Unfa

  11. Slide 11: Agenda

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

  12. Slide 12: Q2 2021 Services | Pressures from FX and COVID-19

    Q2 2021 SERVICES | PRESSURES FROM FX AND COVID-19 Same market Organic Q2 2021 Q2 2020 Growth Growth treatment growth € million € million in % in %cc in % growth Drivers Revenue in % Health Care Services 3,400 3,614 (6) 2 1 (1) North America 2,695 2,951 (9) 0 (1) (2) + Organic growth impacted by EMEA

  13. Slide 13: Q2 2021 Products | Robust business performance

    Q2 2021 PRODUCTS | ROBUST BUSINESS PERFORMANCE Organic Q2 2021 Q2 2020 Growth Growth € million € million in % in %cc growth Revenue in % Drivers Health Care Products 920 943 (3) 2 1 North America 258 289 (11) (2) (2) + In-center EMEA 352 346 1 3 3 disposables in EMEA and Asia- Asia-Pacific 259 254 2

  14. Slide 14: Q2 2021 | COVID-19 adversely affecting margins

    Q2 2021 | COVID-19 ADVERSELY AFFECTING MARGINS Operating income in €m and margins in % 1.5% Q2 operating income drivers 17.3% 10.6% 3 84 134 13.5% 9.8% ‒ Adverse impact from COVID-19, including 73 a higher prior-year base ‒ Expected phasing and higher SG&A expense 398 424 ‒ Exchange rate effects ‒ I

  15. Slide 15: H1 2021 | Operating margin development

    H1 2021 | OPERATING MARGIN DEVELOPMENT 13.4% (2.3pp) H1 operating income margin drivers ‒ Adverse impact from COVID-19 ‒ Increased costs due to macroeconomic (1.2pp) inflationary effects (labor and supplies) +1.0pp ‒ Positive prior-year effect from divestiture of 10.5% vascular and cardiovascular cl

  16. Slide 16: Q2 2021 | Solid underlying cash flow development

    Q2 2021 | SOLID UNDERLYING CASH FLOW DEVELOPMENT Q2 2021 Q2 2020 € million € million Operating cash flow 921 2,319 in % of revenue 21.3 50.9 Capital expenditures, net (201) (216) Free cash flow 720 2,103 Free cash flow after investing activities 672 2,039 NET LEVERAGE RATIO (NET DEBT/EBITDA)1 Curren

  17. Slide 17: 2021 Targets confirmed

    2021 TARGETS CONFIRMED Assumptions: • Excess mortality to continue to REVENUE NET INCOME accumulate in the first half of 2021, (constant currency (constant currency returning to normalized mortality pattern growth in %) decline in %) in the second half of 2021 • COVID-19-related additional costs in

  18. Slide 18: Your Questions Are Welcome!

    ad ~ FRESENIUS MEDICAL CARE ) Your Questions Are Welcome!

  19. Slide 19: Q2 2021 | Profit and Loss

    Q2 2021 | PROFIT AND LOSS Q2 2021 Q2 2020 Growth Growth € million € million in % in %cc Revenue 4,320 4,557 (5) 2 Operating income 424 656 (35) (30) Operating income margin in % 9.8 14.4 Operating income excl. special items 430 656 (34) (29) Operating income margin in % excl. special items 10.0 14.4

  20. Slide 20: H1 2021 | Profit and Loss

    H1 2021 | PROFIT AND LOSS H1 2021 H1 2020 Growth Growth € million € million in % in %cc Revenue 8,530 9,045 (6) 2 Operating income 898 1,211 (26) (20) Operating income margin in % 10.5 13.4 Operating income excl. special items 907 1,211 (25) (19) Operating income margin in % excl. special items 10.6

  21. Slide 21: H1 2021 Services

    H1 2021 SERVICES Same market Organic H1 2021 H1 2020 Growth Growth treatment growth € million € million in % in %cc in % growth Revenue in % Health Care Services 6,726 7,209 (7) 2 1 (1) North America 5,338 5,859 (9) 0 (1) (3) EMEA 674 682 (1) 1 0 (3) Asia-Pacific 455 414 10 15 15 7 Latin America 238

  22. Slide 22: H1 2021 Products

    H1 2021 PRODUCTS Organic H1 2021 H1 2020 Growth Growth € million € million in % in %cc growth Revenue in % Health Care Products 1,804 1,836 (2) 3 3 North America 514 567 (9) (1) (1) EMEA 688 684 1 2 3 Asia-Pacific 502 479 5 7 7 Latin America 92 98 (6) 9 7 EMEA NORTH AMERICA 38% 29% 1,804 €m +3% LATI

  23. Slide 23: Debt

    DEBT RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES Q2 2021 FY 2020 FY 2019 € million € million € million Debt Short term debt from unrelated parties 1,322 63 1,150 + Short term debt from related parties 63 17 22 + Current portion of long-term d

  24. Slide 24: EBITDA

    EBITDA RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA AND NET LEVERAGE RATIO TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES Q2 2021 LTM FY 2020 FY 2019 € million € million € million Net income 1,243 1,435 1,439 + Income tax expense 432 501 402 − Interest income (51) (42) (62) + Interest expen

  25. Slide 25: 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

  26. Slide 26: 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 6.1% rep. 5.9% excl. special item NxStage ac

  27. Slide 27: 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. Q2 2021 Q2 2020 FY 2020 Q1 Q2 Q3 Q4 Full year €:$ Period end 1.188 1.120 1.227 2021 77 78 79 79 313 Average 1.205 1.102 1.142 2020 77 78 79 79 313 2019 76 78 79 80 313 €:CNY Period end

  28. Slide 28: Q2 2021 | Patients, treatments, clinics

    Q2 2021 | PATIENTS, TREATMENTS, CLINICS Patients Treatments Clinics Patients Treatments Clinics as of June 30, as of June 30, as of June 30, as of June 30, as of June 30, as of June 30, 2021 2021 2021 2020 2020 2020 North America 210,621 16,006,110 2,662 212,149 16,303,730 2,614 Growth in % (1) (2)

  29. Slide 29: 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

  30. Slide 30: Financial calendar 2021

    FINANCIAL CALENDAR 2021 REPORTING DATES August 13 Financial report of the group (half-year/Q2) November 2 Q3 2021 Earnings Release and Conference Call November 12 Quarterly financial report within the 2nd half-year (Q3) CONFERENCES & MEET THE MANAGMENT August 31 Commerzbank - Corporate Conference 20

  31. Slide 31: 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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