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AGENDA
1 BUSINESS UPDATE
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ASIA/PACIFIC IN DETAIL
ATTACHMENTS
1
BUSINESS UPDATE
Q3 and Nine months 2012
3
Financial Results
Revenue growth of 11% in constant currency (North America +13%; International +7%cc) International results reflect the weaker services same market growth in Asia Pacific and Europe Strong development of operating results in North America keep margin at 18.7%
Growth in % Growth in %
In US-$ million
Q3 2011
Q3 2012
9M 2011
9M 2012
Net revenue
3,184
3,418
9,306
10,095
EBIT
Net income* Excluding investment gain: Net income*
534
279
568
270
6
(3)
1,488
761
1,659
930
11
22
761
790
cc = constant currency
North America
Revenue $ 2,249 m + 13% Organic growth + 3%
7% Asia-Pacific
6% Latin America
cc = constant currency
In US-$ million
Q3 2011
Q3 2012
Growth in %
Growth in %cc
15 (4) 10
15 6 12
3 5 3
4 2 3
Same market treatment growth in %
In US-$ million
9M 2011
9M 2012
Growth in %
Growth in %cc
Organic growth in %
North America
5,289
6,007
14
14
International
Total
cc = constant currency
1,616
6,905
1,680
7,688
4
11
12
13
5
3
4
4
1,129
1,121
(1)
204 608
817
202 605
813
(1) (1)
(1)
(1) 9
7
US-$ in millions
9M 2011
9M 2012
Growth in %
Growth in %cc
3,281
599 1,789 2,401
3,302
595 1,790 2,407
1
(1) -
6
(1) 8 6
2
FINANCIALS & OUTLOOK
Q3 and Nine months 2012
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Net revenue Operating income (EBIT) Operating margin in % Net interest expense Income before taxes Income tax expense Tax rate in % Non-controlling interest Net income
attributable to FMC AG & Co. KGaA cc = constant currency
7 6
11% cc
(1)
(3)
Net revenue Operating income (EBIT) Operating margin in % Net interest expense Income before taxes Income tax expense Tax rate in % Non-controlling interest Net income
attributable to FMC AG & Co. KGaA cc = constant currency
8 11
11% cc
17
22
10
International DSO flat sequentially and year over year up by 2 days North America DSO down sequentially by 1 day and year over year by 2 days
In days
140
121
120 100 80 60 40
Q2 2011
118
121
124
120
120
International
82
59
80
55
80
55
81 55
77
54
76
TOTAL
53
North America
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
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Q3 | Cash Flow
US-$ in millions
Q3 2011
Q3 2012
Growth in %
Operating cash flow % of revenue Capital expenditures, net* Free cash flow
Acquisitions and investments, net of divestitures* Free cash flow after acquisitions and investments
16
18
264
334
* A reconciliation to the most directly comparable U.S. GAAP financial measures is provided in the attachments
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1)
~ $ 14.0 bn
2)
14,280 13,720
~ 16.9%
~ $ 1.14 bn
2)
1,163 1,117
Acquisitions Capex
Total debt / EBITDA
1)
~ $ 1.8 bn ~ $ 0.7 bn
< 3.0
2)
This does neither include the investment gain in the amount of $140 million in the first nine month of 2012 nor does it consider charges of up to $70 million after tax mainly related to the intended renegotiation of the distribution, manufacturing and supply agreement for iron products in North America to reflect changes in the market and a donation to the American Society of Nephrology Foundation to establish the Ben J. Lipps Research Fellowship Program As indicated in Q2 2012 we are defining the ~ sign as a +/- 0-2% deviation from the respective numbers.
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Summary
Divestiture of clinics was slower than expected due to increased regulatory scrutiny and affected same store growth in Europe and revenue rate in North America
Outstanding cash collection despite difficult global economic environment with Days Sales Outstanding (DSO)
Continued focus on a global basis with payers to achieve increased reimbursement while providing additional patient care services
Updating our global quality systems to new standards with additional investment to provide the highest quality of patient care and products
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3
GROWTH STRATEGY
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163,454*
48,981*
Asia-Pacific
17,392*
* Number of Patients as of Q3 2012
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Dialysis machines
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5-6% patient growth rate globally driven by age, lifestyle and mortality reduction
2,500,000
1,500,000
80,000
1980
1990
2000
2010
2020
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1,795
1,664 1,540
517
560
621
680
748
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Global Strategy
Services Areas to improve dialysis outcomes
Fluid Management
Anemia Management
Physiological Support
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Phase I
Geographic Expansion of Dialysis Products
0.07
1985
0.9
1995
2005
2011
2015
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ASIA/PACIFIC IN DETAIL
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India 17.2%
4 billion
Europe 10.5%
3 billion
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9.5% 9.4%
Singapore
South Korea
Asia Pacific
Hong Kong
Taiwan
Philippines
Indonesia
Sri Lanka
Thailand
Japan
China
India
Source: EIU (Sept 2011), U.S. Census Bureau (2012 Population Estimates)
New Zealand
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Vietnam
Malaysia
Pakistan
China and India more than twice the World AGR Total Asia Pacific AGR at 9% (which is 50% higher than World AGR)
12%
9% 6% 3% 0% New Zealand Philipines Pakistan Hong Kong Bangladesh South Korea Taiwan China India Sri Lanka Australia Thailand
Source: Model Projected by Dr. Feidhlim Woods and Dr. Michael Etter
Singapore
Indonesia
Malaysia
Vietnam
Japan
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Economies
Emerging Advanced
Reimbursement
No System Full Coverage
Healthcare Spend
2% of GDP 10%
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ATTACHMENTS
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Attachment 1
Reconciliation of non-US-GAAP financial measures to most comparable US-GAAP measure
All numbers are in US$ m External revenue Q3 (excl. Corporate) International product revenue - Internal revenue = International external revenue North America product revenue - Internal revenue = North America external revenue Total product revenue - Internal revenue Total external revenue Q3 2011 723 (115) 608 401 (197) 204 1,129 (312) 817 Q3 2012 717 (112) 605 398 (196) 202 1,121 (308) 813 Growth in % (1) (1) (1) (1) (1) (1) Growth in % cc 9 9 (1) (1) 6 7
Q3 2011
(158) 8 (150)
Q3 2012
(173) 9 (164)
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Attachment 2
Reconciliation of non-US-GAAP financial measures to most comparable US-GAAP measure
All numbers are in US$ m External revenue 9M (excl. Corporate) International product revenue - Internal revenue = International external revenue North America product revenue - Internal revenue = North America external revenue Total product revenue - Internal revenue Total external revenue 9M 2011 2,095 (306) 1,789 1,173 (574) 599 3,281 (880) 2,401 9M 2012 2,111 (321) 1,790 1,169 (574) 595 3,302 (895) 2,407 Growth in % 1 0 0 (1) 1 0 Growth in % cc 9 8 0 (1) 6 6
9M 2011
(397) 17 (380)
9M 2012
(450) 12 (438)
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Attachment 3
Reconciliation of non-US-GAAP financial measures to most comparable US-GAAP measure
All numbers are in US$ m Cash Flow Acquisitions, investments and net purchases of intangible assets + Proceeds from divestitures = Acquisitions and investments, net of divestitures 9M 2011 (1,171) (1,171) 9M 2012 (1,789) 232 (1,557) Q3 2011 (49) (49) Q3 2012 (41) 4 (37)
Patients, treatments, clinics Q3 2012 North America Growth in % International Growth in % Europe Latin America Asia-Pacific TOTAL Growth in %
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Attachment 4
Reconciliation of non-US-GAAP financial measures to most comparable US-GAAP measure
All numbers are in US$ m Debt Short term borrowings (incl. A/R program1) + Short term borrowing from related parties + Current portion of long-term debt and capital lease obligations + Current portion of trust preferred securities + Long-term debt and capital lease obligations less current portion + Trust preferred securities less current portion TOTAL debt EBITDA Last twelve months operating income (EBIT) + Last twelve months depreciation and amortization + Non-cash charges EBITDA (annualized) Total Debt / EBITDA
1
Q3 2012 114 95 499 7,733 8,441 Q3 2012 2,329 614 61 3,004 2.81
FY 2010 671 10 264 625 4,310 5,880 FY 2010 1,924 503 45 2,472 2.38
FY 2009 316 10 158 4,428 656 5,568 FY 2009 1,756 457 50 2,263 2.46
FY 2008 684 1 455 3,957 641 5,738 FY 2008 1,672 416 44 2,132 2.69
2006 - 2010
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360
340 320 300 280 260 240 220
300
+ 0.9% 288
291
282
279
281
280
2009
2010
2011
Q3 2011
Q3 2012
220
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U. S.
Q3 2011 Q3 2012
EMEA
Q3 2011 Q3 2012
Asia-Pacific**
Q3 2011 Q3 2012
97 81 77 89 84 64 80 9.8
97 82 74 83 85 66 84 9.7
96 84 57 78 86 75 78 9.4
96 85 59 78 87 78 77 9.3
97 96 57 66 90 73 75 5.0
97 93 58 66 89 73 74 4.5
Phosphate 5.5 mg/dl Calcium 8.4 10.2 mg/dl Hospitalization days, per patient
* In the U.S. the albumin results are calculated with the BCG-method (bromcresol green) ** Phillipines and Taiwan Jiate included as of Q2 2012
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Product Launches
USA
International
2008@Home
4008S classic
5008S
New Dialyzers
Peritoneal Dialysis
Future Technology
Optiflux Ultra
Neutral pH solution - pd
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Dialysis Clinic
3x / Week + Nocturnal
PD
CAPD APD Wearable Kidney
c
Assisted Self Care Dialysis 3 5 x / Week Just like Home
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Contacts
Investor Relations Else-Krner-Str. 1 61352 Bad Homburg v.d.H.
Ticker:
WKN: ISIN:
Tel: Email:
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Financial Calendar*
Analyst meeting on Fiscal Year 2012 Report on 1st quarter 2013 Annual General Meeting, Frankfurt/Main
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Constant Currency: Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure at constant exchange rates in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term constant currency, it means that we have translated local currency revenues for the current reporting period into U.S. dollars using
the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate
local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage at constant exchange rates. We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-
GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information
enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without
considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in
revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
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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. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties, including changes in business, economic 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 discussed in detail in Fresenius Medical Care AG & Co. KGaAs (FMC AG & Co. KGaA) reports filed with the Securities and Exchange Commission (SEC) and the German Exchange Commission (Deutsche Brse).
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