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Fresenius SE & Co KGaA will be included in the EURO STOXX 50 blue-chip index on September 21, 2015. The index update was announced by the Deutsche Börse subsidiary STOXX after the close of trading on Monday night. The EURO STOXX 50 index tracks the share price development of 50 large publicly traded companies, representing various economic sectors, from twelve Eurozone countries.
Fresenius joined Germany’s blue-chip DAX index in March 2009, and has continued to post strong growth since then. Group sales almost doubled from €12.3 billion in 2008 to €23.2 billion in 2014. Over the same period, adjusted Group net income increased from €450 million to €1.086 billion.
Fresenius, which has more than 220,000 employees worldwide, has ambitious growth targets for this year. Group sales for 2015 are expected to rise by 8% to 10% in constant currency, while adjusted Group net income is forecasted to increase by approximately 18% to 21% in constant currency.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius expects a significant 2015 dividend increase, resulting from the forecasted 2015 net income growth applied to the company’s dividend policy. After raising guidance twice this year, Fresenius is forecasting 2015 net income growth of 18% to 21% in constant currency. In addition, the company expects a significant positive currency effect. 2015 dividend growth is therefore expected to clearly exceed 20%. This will mark the company’s 23rd consecutive year of dividend increases.
Ulf Mark Schneider, CEO of Fresenius, said: “Fresenius’ business model is non-cyclical and we confirm our guidance for 2015. Our expectations for 2016 are also very positive, even in light of current concerns about the global economy.”
In February 2014, Fresenius announced a net income target of €1.4 to €1.5 billion for 2017. Assuming stable exchange rates from here, Fresenius will reach that target this year – two years ahead of schedule. Even if the currency contribution declines in the coming months, the company will come very close.
“We therefore plan to provide a new mid-term target in February 2016 to guide investors’ expectations regarding the company’s future growth ambitions,” Schneider said.
Fresenius will announce its Q3 2015 results on October 29, 2015.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius is a global healthcare group offering high-quality products and services for dialysis, hospitals, and outpatient treatment. The company's headquarters are located in Bad Homburg, Germany.
If no timeframe is specified, information refers to H1/2015.
For a detailed overview of special items please see the pdf of this Investor News on pages 15-16.
Q2/2015:
Sales €6.9 billion (+26% at actual rates, +13% in constant currency)
EBIT1 €971 million (+28% at actual rates, +12% in constant currency)
Net income2 €350 million (+35% at actual rates, +22% in constant currency)
H1/2015:
Sales €13.4 billion (+25% at actual rates, +13% in constant currency)
EBIT1 €1.8 billion (+30% at actual rates, +15% in constant currency)
Net income2 €642 million (+32% at actual rates, +19% in constant currency)
Ulf Mark Schneider, CEO of Fresenius, said: “Our strong growth trend continues in all four business segments. In times of economic volatility, our broad geographic presence and well-diversified business provide reliable growth and continue to contribute to Fresenius’ overall success. We are highly confident of our Company’s growth prospects and raise our Group earnings guidance.”
1 Before special items2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
2015 Group earnings guidance1 raised
Based on the Group’s excellent financial results in the first half of 2015 and excellent prospects for the remainder of the year, Fresenius raises its 2015 Group earnings guidance. Net income2 is now expected to grow by 18% to 21% in constant currency. Previously, Fresenius expected net income2 growth of 13% to 16% in constant currency. Sales guidance is narrowed to 8% to 10% in constant currency within the previously guided range of 7% to 10%.
The net debt/EBITDA3 ratio is expected to be approximately 3.0 at the end of 2015.
1 Based on the average exchange rates through July 24 and the exchange rates of July 24 applied to the remainder of the year, this implies sales of ~€27.6 billion and net income of ~€1.39 billion, at the lower end of the respective guidance range.2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~€10 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items3 At annual average exchange rates for both net debt and EBITDA; without major unannounced acquisitions; before special items
13% sales growth in constant currency
Group sales increased by 25% (13% in constant currency) to €13,429 million (H1/2014: €10,733 million). Organic sales growth was 7%. Acquisitions contributed 7%, while divestitures reduced sales by 1%. In Q2/2015, Group sales increased by 26% (13% in constant currency) to €6,946 million (Q2/2014: €5,521 million). Organic sales growth was 8%. Acquisitions contributed 6%, while divestitures reduced sales by 1%.
Group sales by region:
19% Group net income1 growth in constant currency
Group EBITDA2 increased by 28% (13% in constant currency) to €2,364 million (H1/2014: €1,854 million). Group EBIT2 increased by 30% (15% in constant currency) to €1,822 million (H1/2014: €1,403 million). The EBIT margin was 13.6% (H1/2014: 13.1%). In Q2/2015 Group EBIT2 increased by 28% (12% in constant currency) to €971 million (Q2/2014: €760 million), the EBIT2 margin was 14.0% (Q2/2014: 13.8%).
Group net interest increased to -€330 million (H1/2014: -€283 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects.
The Group tax rate2 was 29.6% (H1/2014: 29.6%). In Q2/2015, the Group tax rate was 29.0% (Q2/2014: 32.4%, due to a special tax effect at Fresenius Medical Care).
Noncontrolling interest was €409 million (H1/2014: €301 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Group net income3 before special items increased by 32% (19% in constant currency) to €642 million (H1/2014: €487 million). Earnings per share1 increased by 31% (19% in constant currency) to €1.18 (H1/2014: €0.90). In Q2/2015, Group net income3 before special items increased by 35% (22% in constant currency) to €350 million (Q2/2014: €259 million). Earnings per share1 increased by 33% (21% in constant currency) to €0.64 (Q2/2014: €0.48).
Group net income3 including special items increased by 20% (9% in constant currency) to €642 million (H1/2014: €534 million). Earnings per share3 increased by 19% (8% in constant currency) to €1.18 (H1/2014: € 0.99). In Q2/2015, Group net income3 including special items increased by 14% (2% in constant currency) to €325 million (Q2/2014: €286 million). Earnings per share1 increased by 13% (0% in constant currency) to €0.60 (Q2/2014: €0.53).
A reconciliation to earnings according to U.S. GAAP can be found on pages 15-16 in the pdf of this Investor News.
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items2 Before special items3 Net income attributable to shareholders of Fresenius SE & Co. KGaA
Continued investment in growth
Spending on property, plant and equipment was €611 million (H1/2014: €522 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €194 million (H1/2014: €1,216 million).
Increase in operating cash flow
Operating cash flow increased to €1,251 million (H1/2014: €750 million). The cash flow margin increased to 9.3% (H1/2014: 7.0%). Operating cash flow in H1/2014 was reduced by the US$115 million1 payment for the W.R. Grace bankruptcy settlement. Operating cash flow in Q2/2015 increased to €720 million (Q2/2014: €610 million). The cash flow margin decreased to 10.4% (Q2/2014: 11.0%).
Net capital expenditure increased to €605 million (H1/2014: €532 million). Free cash flow before acquisitions and dividends improved to €646 million (H1/2014: €218 million). Free cash flow after acquisitions and dividends increased to €107 million (H1/2014: €1,275 million).
Solid balance sheet structure
The Group’s total assets increased by 6% (1% in constant currency) to €42,271 million (Dec. 31, 2014: €39,897 million). Current assets grew by 5% (1% in constant currency) to €10,513 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 6% (1% in constant currency) to €31,758 million (Dec. 31, 2014: € 29,869 million).
Total shareholders’ equity increased by 9% (4% in constant currency) to €16,909 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.0% (Dec. 31, 2014: 38.8%).
Group debt grew by 1% (decreased by 3% in constant currency) to €15,661 million (Dec. 31, 2014: € 15,454 million). As of June 30, 2015, the net debt/EBITDA ratio was 3.192 (3.072 at LTM average exchange rates for both net debt and EBITDA).
1 See Annual Report 2014, page 152 f.2 Pro forma acquisitions; before special items
Fresenius Medical Care
Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure. As of June 30, 2015, Fresenius Medical Care was treating 289,610 patients in 3,421 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.
8% organic sales growth in Q2
Sales outside North America impacted by currency development
2015 outlook confirmed
Sales increased by 10% (16% in constant currency) to US$8,159 million (H1/2014: US$7,398 million). Organic sales growth was 8%. Acquisitions contributed 9%, while divestitures reduced sales by 1%. Currency effects reduced sales by 6%. In Q2/2015, sales increased by 9% (15% in constant currency) to US$4,199 (Q2/2014: US$3,835).
Health Care services sales (dialysis services and care coordination) increased by 14% (18% in constant currency) to US$6,527 million (H1/2014: US$5,731 million). Dialysis product sales decreased by 2% (increased by 9% in constant currency) to US$1,631 million (H1/2014: US$1,667 million).
In North America, sales increased by 16% to US$5,717 million (H1/2014: US$4,914 million). Health Care services sales grew by 17% to US$5,293 million (H1/2014: US$4,517 million). Dialysis product sales increased by 7% to US$424 million (H1/2014: US$397 million).
Sales outside North America decreased by 1% (increased by 16% in constant currency) to US$2,427 million (H1/2014: US$2,458 million). Health Care services sales increased by 2% (21% in constant currency) to US$1,234 million (H1/2014: US$1,214 million). Dialysis product sales decreased by 4% (increased by 11% in constant currency) to US$1,193 million (H1/2014: US$1,244 million).
EBIT increased by 5% (12% in constant currency) to US$1,051 million (H1/2014: US$1,001 million). The EBIT margin was 12.9% (H1/2014: 13.5%). In Q2/2015, EBIT decreased by 2% (increased by 4% in constant currency) to US$547 million (Q2/2014: US$556 million). EBIT margin was 13.0% (Q2/2014: 14.5%).
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 3% (10% in constant currency) to US$450 million (H1/2014: US$439 million). In Q2/2015, net income grew by 3% (11% in constant currency) to US$241 million (Q2/2014: US$234 million).
Operating cash flow increased to US$832 million (H1/2014: US$562 million). Operating cash flow in H1/2014 was reduced by the US$1152 million payment for the W.R.Grace bankruptcy settlement. The cash flow margin increased to 10.2% (H1/2014: 7.6%). In Q2/2015, operating cash flow decreased to US$385 million (Q2/2014: US$449 million), the cash flow margin was 9.2% (Q2/2014: 11.7%).
Fresenius Medical Care confirms its outlook for 2015. The company expects sales to grow by 5% to 7%, which equals a growth rate of 10% to 12% in constant currency. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0% to 5% in 2015.
The outlook is based on current exchange rates. Savings from the global efficiency program are included, while earnings contributions from potential acquisitions are not. The outlook reflects further operating cost investments within the Care Coordination segment.
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 See Annual Report 2014, page 152 f.
Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.
11% organic sales growth in Q2
26% EBIT growth in constant currency in Q2
2015 outlook raised
Sales increased by 19% (8% in constant currency) to €2,932 million (H1/2014: €2,466 million). Organic sales growth was 8%. Acquisitions contributed 1% while divestitures reduced sales by 1%. Positive currency translation effects (11%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q2/2015, sales increased by 23% (11% in constant currency) to €1,538 million (Q2/2014: €1,253 million). Organic sales growth was 11%.
Sales in Europe grew by 3% (organic growth: 5%) to €1,052 million (H1/2014: €1,024 million). Sales in North America increased by 37% (organic growth: 13%) to €1,026 million (H1/2014: €747 million). Sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 22% (organic growth: 4%) to €564 million (H1/2014: €464 million). Sales in Latin America/Africa grew by 25% (organic growth: 11%) to €290 million (H1/2014: €231 million).
EBIT1 increased by 39% (18% in constant currency) to €571 million (H1/2014: €411 million). The EBIT margin was 19.5% (H1/2014: 16.7%). In Q2/2015, EBIT1 increased by 50% (26% in constant currency) to €314 million (Q2/2014: €210 million). The EBIT margin was 20.4% (Q2/2014: 16.8%).
Net income2 increased by 42% (22% in constant currency) to €309 million (H1/2014: €217 million). In Q2/2015, net income1 increased by 52% (30% in constant currency) to €169 million (Q2/2014: €111 million).
Operating cash flow increased by 65% to €354 million (H1/2014: €215 million) with a margin of 12.1% (H1/2014: 8.7%). In Q2/2015, operating cash flow increased to €271 million (Q2/2014: €173 million) with a margin of 17.6% (Q2/2014: 13.8%).
Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €40 million before tax were incurred in the first half of 2015 (Q2/2015: €30 million). These costs are reported in the Group segment Corporate/Other.
Fresenius Kabi raises its outlook3 for 2015 and now expects organic sales growth of 6% to 8% and EBIT growth in constant currency in the range of 18% to 21%. The implied EBIT margin is 19.0% to 20.0%. Previously, Fresenius Kabi projected organic sales growth of 4% to 7% and an EBIT growth in constant currency in the range of 11% to 14% with an implied EBIT margin in the range of 18.5% to 19.5%.
Fresenius Kabi’s outlook excludes ~€100 million costs before tax for the efficiency program. For segment reporting purposes, these costs will not be reported in the Fresenius Kabi segment but as special items in the Group segment Corporate/Other.
1 Before special items2 Net income attributable to shareholders of Fresenius Kabi AG; before special items3 Based on the average exchange rates through July 24 and the exchange rates of July 24 applied to the remainder of the year, this implies sales of ~€5.9 billion and EBIT of ~€1.17 billion, at the lower end of the respective expected range
Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats approximately 4.5 million patients per year, thereof 1.2 million inpatients, and operates more than 34,000 beds.
18% EBIT increase in Q2
100 bps sequential EBIT margin increase
2015 outlook fully confirmed
Sales increased by 10% to €2,774 million (H1/2014: €2,521 million). Organic sales growth was 3% (H1/2014: 3%). Acquisitions contributed 8% while divestitures reduced sales by 1%. In Q2/2015, sales increased by 7% to €1,383 million (Q2/2014: €1,294 million), organic sales growth was 2% (Q2/2014: 3%).
EBIT1 grew by 23% to €307 million (H1/2014: €250 million). The EBIT margin increased to 11.1% (H1/2014: 9.9%). In Q2/2015, EBIT1 increased by 18% to €160 million (Q2/2014: €136 million). Sequentially, the EBIT margin increased by 100 bps to 11.6%.
Net income2 increased by 26% to €226 million (H1/2014: €179 million). In Q2/2015, net income2 increased by 17% to €119 million (Q2/2014: €102 million).
Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 3% to €2,583 million (H1/2014: €2,504 million). EBIT1 increased by 20% to €298 million (H1/2014: €248 million). The EBIT margin increased to 11.5% (H1/2014: 9.9%). Sales of the acquired hospitals consolidated for less than one year were €191 million. EBIT1 was €9 million with a margin of 4.7%.
The integration of the hospitals acquired from Rhön-Klinikum AG is fully on track. Amount and timing of targeted near-term cost synergies (€85 million p.a.) are confirmed. Integration costs were €8 million in H1/2015 (Q2/2015: €6 million) taking the total to date to €59 million. Total integration costs for 2014 and 2015 are confirmed at approximately €60 million.
Fresenius Helios fully confirms its outlook for 2015. Fresenius Helios projects organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT is expected to increase to €630 to €650 million.
Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~€10 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate/Other.
1 Before special items2 Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.
20% organic sales growth in Q2
Sequential growth acceleration in project business
2015 outlook fully confirmed
Sales increased by 16% (15% in constant currency) to €463 million (H1/2014: €398 million). Organic sales growth was 13%. Acquisitions contributed 2%. Sales in the project business increased by 17% to €202 million (H1/2014: € 173 million). Sales in the service business grew by 16% to €261 million (H1/2014: €225 million). In Q2/2015, sales increased by 23% to €255 million (Q2/2014: €207 million). Organic sales growth was 20%.
EBIT grew by 7% to €16 million (H1/2014: €15 million). The EBIT margin decreased to 3.5% (H1/2014: 3.8%). In Q2/2015, EBIT remained unchanged at €9 million (Q2/2014: €9 million). Sequentially, the EBIT margin increased by 10 bps to 3.5%.
Net income1 was unchanged at €10 million (H1/2014: €10 million). In Q2/2015, net income1 of €6 million was also at prior-year level (Q2/2014: €6 million).
Order intake decreased by 5% to €284 million (H1/2014: €300 million). As of June 30, 2015, order backlog was €1,479 million (Dec. 31, 2014: €1,398 million).
Fresenius Vamed fully confirms its outlook for 2015 and expects to achieve single-digit organic sales growth and EBIT growth of 5% to 10%.
1 Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for the first half of 2015, a conference call will be held on July 30, 2015 at 2 p.m. CEDT (8 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, see Investor Relations, Presentations. Following the call, a replay will be available on our website.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Sales €6.5 billion (+24% at actual rates, +13% in constant currency)
EBIT1 €851 million (+32% at actual rates, +18% in constant currency)
Net income2 €292 million (+28% at actual rates, +16% in constant currency)
Ulf Mark Schneider, CEO of Fresenius, said: “Fresenius had an excellent start into the year, even before taking into account very favorable exchange rate effects. All four business segments contributed to the strong financial results, with Fresenius Kabi’s performance in particular standing out. We expect continued momentum in sales and profit growth in the coming quarters and raise our Group earnings guidance for 2015.”
1 Before special items2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
2015 Group earnings guidance1 raised
Based on the Group’s excellent financial results in the first quarter of 2015 and positive prospects for the remainder of the year, Fresenius raises its 2015 earnings guidance. For 2015, Fresenius now expects net income2 growth of 13% to 16% in constant currency. Previously, the company expected net income2 growth of 9% to 12% in constant currency. The company fully confirms its Group sales guidance. Sales are expected to increase by 7% to 10% in constant currency.
The net debt/EBITDA3 ratio is expected to be approximately 3.0 at the end of 2015.
13% sales growth in constant currency
Group sales in the first quarter increased by 24% (13% in constant currency) to €6,483 million (Q1/2014: €5,212 million). Organic sales growth was 6%. Acquisitions contributed 8%, while divestitures reduced sales by 1%.
Group sales by region:
1 Based on the average exchange rates through April 24 and the exchange rates of April 24 applied to the remainder of the year, this implies sales of ~€27.6 billion and net income of ~€1.34 billion, at the lower end of the guidance range.2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~€10 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items3 At annual average exchange rates for both net debt and EBITDA; without major acquisitions; before special items
16% net income1 growth in constant currency
Group EBITDA2 increased by 29% (15% in constant currency) to €1,115 million (Q1/2014: €867 million). Group EBIT2 increased by 32% (18% in constant currency) to €851 million (Q1/2014: €643 million). The EBIT margin was 13.1% (Q1/2014: 12.3%).
Group net interest increased to -€165 million (Q1/2014: -€138 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects.
The Group tax rate2 increased to 30.2% (Q1/2014: 26.3%). In the first quarter of 2014, a one-time item at Fresenius Medical Care had positively influenced the Group tax rate.
Noncontrolling interest was €187 million (Q1/2014: €144 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Group net income3 before special items increased by 28% (16% in constant currency) to €292 million (Q1/2014: €228 million). Earnings per share3 increased by 28% (16% in constant currency) to €0.54 (Q1/2014: €0.42).
Group net income3 including special items increased by 28% (17% in constant currency) to €317 million (Q1/2014: €248 million). Earnings per share3 increased by 26% (17% in constant currency) to € 0.58 (Q1/2014: € 0.46).
A reconciliation to earnings according to U.S. GAAP can be found on page 14 in the pdf of this Investor News.
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items2 Before special items3 Net income attributable to shareholders of Fresenius SE & Co. KGaA
Continued investment in growth
Spending on property, plant and equipment was €273 million (Q1/2014: €234 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €104 million (Q1/2014: €924 million).
Increase in operating cash flow
Operating cash flow increased to €531 million (Q1/2014: €140 million). The cash flow margin increased to 8.2% (Q1/2014: 2.7%). Operating cash flow in the first quarter of 2014 was affected by the payment for the W.R. Grace bankruptcy settlement of US$115 million1.
Net capital expenditure increased to €273 million (Q1/2014: €243 million). Free cash flow before acquisitions and dividends improved to €258 million (Q1/2014: -€103 million). Free cash flow after acquisitions and dividends increased to €256 million (Q1/2014: €1,006 million).
1 See Annual Report 2014, page 152 f.
Solid balance sheet structure
The Group’s total assets increased by 8% (0% in constant currency) to €43,032 million (Dec. 31, 2014: €39,897 million). Current assets grew by 7% (0% in constant currency) to €10,688 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 8% (1% in constant currency) to €32,344 million (Dec. 31, 2014: € 29,869 million).
Total shareholders’ equity increased by 12% (3% in constant currency) to €17,271 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.1% (Dec. 31, 2014: 38.8%).
Group debt grew by 3% (decreased by 3% in constant currency) to €15,940 million (Dec. 31, 2014: € 15,454 million).
As of March 31, 2015, the net debt/EBITDA ratio was 3.401 (3.121 at LTM average exchange rates for both net debt and EBITDA).
1 Pro forma acquisitions; before special items
Business Segments
Fresenius Medical Care
Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure. As of March 31, 2015, Fresenius Medical Care was treating 286,768 patients in 3,396 dialysis clinics.
Excellent sales growth of 11%
Strong cash flow margin of 11.3%
2015 outlook confirmed
Sales increased by 11% (17% in constant currency) to US$3,960 million (Q1/2014: US$3,564 million). Organic sales growth was 7%. Acquisitions contributed 10%. Adverse currency effects reduced sales by 6%.
Health Care services sales (dialysis services and care coordination) increased by 14% (18% in constant currency) to US$3,182 million (Q1/2014: US$2,782 million). Dialysis product sales were US$778 million (Q1/2014: US$782 million), an increase by 11% in constant currency.
In North America, sales increased by 16% to US$2,771 million (Q1/2014: US$2,393 million). Health Care services sales grew by 17% to US$2,571 million (Q1/2014: US$2,201 million). Dialysis product sales increased by 4% to US$200 million (Q1/2014: US$192 million).
Sales outside North America grew by 2% (18% in constant currency) to US$1,180 million (Q1/2014: US$1,161 million). Health Care services sales increased by 5% (24% in constant currency) to US$611 million (Q1/2014: US$581 million). Dialysis product sales decreased by 2% (increased by 13% in constant currency) to US$569 million (Q1/2014: US$580 million).
EBIT increased by 13% (21% in constant currency) to US$504 million (Q1/2014: US$445 million) due to improvements in the operating business across all regions. The EBIT margin increased to 12.7% (Q1/2014: 12.5%).
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 2% (10% in constant currency) to US$210 million (Q1/2014: US$205 million).
Operating cash flow increased to US$447 million (Q1/2014: US$112 million, affected by the payment for the W.R. Grace bankruptcy settlement of US$115 million2). The cash flow margin increased to 11.3% (Q1/2014: 3.2%).
Fresenius Medical Care confirms its outlook for 2015. The company expects sales to grow at 5% to 7%, which at constant currency is a growth rate of 10% to 12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase 0% to 5% in 2015.
Savings from the global efficiency program are included, while potential acquisitions are not. The outlook reflects further operating cost investments within the Care Coordination segment. The outlook is based on exchange rates prevailing at the beginning of 2015.
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 See Annual Report 2014, page 152 f.
Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.
5% organic sales growth at the upper end of expected range
10% EBIT growth in constant currency
North American outlook significantly improved
2015 outlook raised
Sales increased by 15% (5% in constant currency) to €1,394 million (Q1/2014: €1,213 million). Organic sales growth was 5%. Acquisitions contributed 1% while divestitures reduced sales by 1%. Positive currency translation effects (10%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan.
Sales in Europe grew by 4% (organic growth: 5%) to €518 million (Q1/2014: €500 million). Sales in North America increased by 24% (organic growth: 3%) to €473 million (Q1/2014: €382 million). Sales growth was boosted by IV drug shortages easing more slowly than expected. Asia-Pacific sales increased by 20% (organic growth: 4%) to €268 million (Q1/2014: €222 million). Sales in Latin America/Africa grew by 24% (organic growth: 8%) to €135 million (Q1/2014: €109 million).
EBIT1 increased by 28% (10% in constant currency) to €257 million (Q1/2014: €201 million). The EBIT margin was 18.5% (Q1/2014: 16.6%).
Net income2 increased by 32% (14% in constant currency) to €140 million (Q1/2014: €106 million).
Operating cash flow increased by 98% to €83 million (Q1/2014: €42 million) with a margin of 6.0% (Q1/2014: 3.5%).
Fresenius Kabi’s initiative to increase production efficiency and streamline administrative structures is well on track. Costs of €10 million before tax were incurred in the first quarter of 2015. These costs are reported in the Group segment Corporate/Other.
Fresenius Kabi raises its outlook3 for 2015 and now expects organic sales growth of 4% to 7% and EBIT growth in constant currency in the range of 11% to 14%. The implied EBIT margin is 18.5% to 19.5%. Previously, Fresenius Kabi projected organic sales growth of 3% to 5% and an EBIT growth in constant currency in the range of 4% to 6% with an implied EBIT margin in the range of 17.5% to 18.5%.
Fresenius Kabi’s outlook excludes ~€100 million costs before tax for the efficiency program. For segment reporting purposes, these costs will not be reported in the Fresenius Kabi segment but as special items in the Group segment Corporate/Other.
1 Before special items2 Net income attributable to shareholders of Fresenius Kabi AG; before special items3 Based on the average exchange rates through April 24 and the exchange rates of April 24 applied to the remainder of the year, this implies sales of ~€5.8 billion and EBIT of ~€1.11 billion, at the lower end of the expected range
Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats approximately 4.5 million patients per year, thereof 1.2 million inpatients, and operates more than 34,000 beds.
4% organic sales growth fully in line with expectations
200 bps EBIT margin increase in established hospital business
2015 outlook fully confirmed
Sales increased by 13% to €1,391 million (Q1/2014: €1,227 million). Organic sales growth was 4% (Q1/2014: 4%). Acquisitions contributed 10% while divestitures reduced sales by 1%.
EBIT1 grew by 29% to €147 million (Q1/2014: €114 million). The EBIT margin increased to 10.6% (Q1/2014: 9.3%).
Net income2 increased by 39% to €107 million (Q1/2014: €77 million).
Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 4% to €1,263 million (Q1/2014: €1,214 million). EBIT1 increased by 27% to €143 million (Q1/2014: €113 million). The EBIT margin increased to 11.3% (Q1/2014: 9.3%). Sales of the acquired hospitals3 consolidated for less than one year were €128 million. EBIT1 was €4 million with a margin of 3.1%.
The integration of the hospitals acquired from Rhön-Klinikum AG is fully on track. Total integration costs for 2014 and 2015 are confirmed at approximately €60 million. Integration costs were €2 million in Q1/2015 taking the total to date to €53 million. Amount and timing of projected near-term cost synergies (€85 million p.a.) are also confirmed.
Fresenius Helios fully confirms its outlook for 2015. Fresenius Helios projects organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT is expected to increase to €630 to €650 million.
Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~€10 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate/Other.
1 Before special items 2 Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items 3 Hospitals acquired from Rhön-Klinikum AG
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide.
Service business driving organic sales growth
Excellent order intake of €192 million
2015 outlook confirmed
Sales increased by 9% (8% in constant currency) to €208 million (Q1/2014: €191 million). Organic sales growth was 6%. Acquisitions contributed 2%. Sales in the project business were unchanged at €80 million (Q1/2014: € 80 million). Sales in the service business grew by 15% to €128 million (Q1/2014: € 111 million).
EBIT grew by 17% to €7 million (Q1/2014: €6 million) with a margin of 3.4% (Q1/2014: 3.1%).
Net income1 was unchanged at €4 million (Q1/2014: €4 million).
Order intake increased by 67% to €192 million (Q1/2014: €115 million). As of March 31, 2015, order backlog reached a new all-time high of €1,510 million (Dec. 31, 2014: €1,398 million).
Fresenius Vamed confirms its outlook for 2015 and expects to achieve single-digit organic sales growth and EBIT growth of 5% to 10%.
1 Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for the first quarter of 2015, a conference call will be held on April 30, 2015 at 2 p.m. CEDT (8 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, see Investor Relations, Presentations. Following the call, a replay will be available on our website.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius SE & Co KGaA will be included in the EURO STOXX 50 blue-chip index on September 21, 2015. The index update was announced by the Deutsche Börse subsidiary STOXX after the close of trading on Monday night. The EURO STOXX 50 index tracks the share price development of 50 large publicly traded companies, representing various economic sectors, from twelve Eurozone countries.
Fresenius joined Germany’s blue-chip DAX index in March 2009, and has continued to post strong growth since then. Group sales almost doubled from €12.3 billion in 2008 to €23.2 billion in 2014. Over the same period, adjusted Group net income increased from €450 million to €1.086 billion.
Fresenius, which has more than 220,000 employees worldwide, has ambitious growth targets for this year. Group sales for 2015 are expected to rise by 8% to 10% in constant currency, while adjusted Group net income is forecasted to increase by approximately 18% to 21% in constant currency.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
If no timeframe is specified, information refers to H1/2015
For a detailed overview of special items please see the reconciliation tables in the PDF file on pages 15-16.
Q2/2015:
Sales: €6.9 billion (+26% at actual rates, +13% in constant currency)
EBIT1: €971 million (+28% at actual rates, +12% in constant currency)
Net income2: €350 million (+35% at actual rates, +22% in constant currency)
H1/2015:
Sales: €13.4 billion (+25% at actual rates, +13% in constant currency)
EBIT1: €1.8 billion (+30% at actual rates, +15% in constant currency)
Net income2: €642 million (+32% at actual rates, +19% in constant currency)
Ulf Mark Schneider, CEO of Fresenius, said: “Our strong growth trend continues in all four business segments. In times of economic volatility, our broad geographic presence and well-diversified business provide reliable growth and continue to contribute to Fresenius’ overall success. We are highly confident of our Company’s growth prospects and raise our Group earnings guidance.”
1Before special items 2Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
2015 Group earnings guidance1 raised
Based on the Group’s excellent financial results in the first half of 2015 and excellent prospects for the remainder of the year, Fresenius raises its 2015 Group earnings guidance. Net income2 is now expected to grow by 18% to 21% in constant currency. Previously, Fresenius expected net income2 growth of 13% to 16% in constant currency. Sales guidance is narrowed to 8% to 10% in constant currency within the previously guided range of 7% to 10%.
The net debt/EBITDA3 ratio is expected to be approximately 3.0 at the end of 2015.
1Based on the average exchange rates through July 24 and the exchange rates of July 24 applied to the remainder of the year, this implies sales of ~€27.6 billion and net income of ~€1.39 billion, at the lower end of the respective guidance range. 2Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~€10 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items 3At annual average exchange rates for both net debt and EBITDA; without major unannounced acquisitions; before special items
13% sales growth in constant currency
Group sales increased by 25% (13% in constant currency) to €13,429 million (H1/2014: €10,733 million). Organic sales growth was 7%. Acquisitions contributed 7%, while divestitures reduced sales by 1%. In Q2/2015, Group sales increased by 26% (13% in constant currency) to €6,946 million (Q2/2014: €5,521 million). Organic sales growth was 8%. Acquisitions contributed 6%, while divestitures reduced sales by 1%.
Group sales by region:
19% Group net income1 growth in constant currency
Group EBITDA2 increased by 28% (13% in constant currency) to €2,364 million (H1/2014: €1,854 million). Group EBIT2 increased by 30% (15% in constant currency) to €1,822 million (H1/2014: €1,403 million). The EBIT margin was 13.6% (H1/2014: 13.1%). In Q2/2015 Group EBIT2 increased by 28% (12% in constant currency) to €971 million (Q2/2014: €760 million), the EBIT margin was 14.0% (Q2/2014: 13.8%).
Group net interest increased to -€330 million (H1/2014: -€283 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects.
The Group tax rate2 was 29.6% (H1/2014: 29.6%). In Q2/2015, the Group tax rate was 29.0% (Q2/2014: 32.4%, due to a special tax effect at Fresenius Medical Care).
Noncontrolling interest was €409 million (H1/2014: €301 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Group net income3 before special items increased by 32% (19% in constant currency) to €642 million (H1/2014: €487 million). Earnings per share1 increased by 31% (19% in constant currency) to €1.18 (H1/2014: €0.90). In Q2/2015, Group net income3 before special items increased by 35% (22% in constant currency) to €350 million (Q2/2014: €259 million). Earnings per share1 increased by 33% (21% in constant currency) to €0.64 (Q2/2014: €0.48).
Group net income3 including special items increased by 20% (9% in constant currency) to €642 million (H1/2014: €534 million). Earnings per share3 increased by 19% (8% in constant currency) to €1.18 (H1/2014: € 0.99). In Q2/2015, Group net income3 including special items increased by 14% (2% in constant currency) to €325 million (Q2/2014: €286 million). Earnings per share3 increased by 13% (0% in constant currency) to €0.60 (Q2/2014: €0.53).
A reconciliation to earnings according to U.S. GAAP can be found on pages 15-16 of this press release.
1Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items 2Before special items 3Net income attributable to shareholders of Fresenius SE & Co. KGaA
Continued investment in growth
Spending on property, plant and equipment was €611 million (H1/2014: €522 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €194 million (H1/2014: €1,216 million).
Increase in operating cash flow
Operating cash flow increased to €1,251 million (H1/2014: €750 million). The cash flow margin increased to 9.3% (H1/2014: 7.0%). Operating cash flow in H1/2014 was reduced by the US$1151 million payment for the W.R. Grace bankruptcy settlement. Operating cash flow in Q2/2015 increased to €720 million (Q2/2014: €610 million). The cash flow margin decreased to 10.4% (Q2/2014: 11.0%).
Net capital expenditure increased to €605 million (H1/2014: €532 million). Free cash flow before acquisitions and dividends improved to €646 million (H1/2014: €218 million). Free cash flow after acquisitions and dividends increased to €107 million (H1/2014: €1,275 million).
1See Annual Report 2014, page 152 f.
Solid balance sheet structure
The Group’s total assets increased by 6% (1% in constant currency) to €42,271 million (Dec. 31, 2014: €39,897 million). Current assets grew by 5% (1% in constant currency) to €10,513 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 6% (1% in constant currency) to €31,758 million (Dec. 31, 2014: € 29,869 million).
Total shareholders’ equity increased by 9% (4% in constant currency) to €16,909 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.0% (Dec. 31, 2014: 38.8%).
Group debt grew by 1% (decreased by 3% in constant currency) to €15,661 million (Dec. 31, 2014: € 15,454 million). As of June 30, 2015, the net debt/EBITDA ratio was 3.191 (3.071 at LTM average exchange rates for both net debt and EBITDA).
1Pro forma acquisitions; before special items
Increased number of employees
As of June 30, 2015, the number of employees increased by 2% to 220,339 (Dec. 31, 2014: 216,275).
Business Segments
Fresenius Medical Care Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure. As of June 30, 2015, Fresenius Medical Care was treating 289,610 patients in 3,421 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.
8% organic sales growth in Q2
Sales outside North America impacted by currency development
2015 outlook confirmed
Sales increased by 10% (16% in constant currency) to US$8,159 million (H1/2014: US$7,398 million). Organic sales growth was 8%. Acquisitions contributed 9%, while divestitures reduced sales by 1%. Currency effects reduced sales by 6%. In Q2/2015, sales increased by 9% (15% in constant currency) to US$4,199 (Q2/2014: US$3,835).
Health Care services sales (dialysis services and care coordination) increased by 14% (18% in constant currency) to US$6,527 million (H1/2014: US$5,731 million). Dialysis product sales decreased by 2% (increased by 9% in constant currency) to US$1,631 million (H1/2014: US$1,667 million).
In North America, sales increased by 16% to US$5,717 million (H1/2014: US$4,914 million). Health Care services sales grew by 17% to US$5,293 million (H1/2014: US$4,517 million). Dialysis product sales increased by 7% to US$424 million (H1/2014: US$397 million).
Sales outside North America decreased by 1% (increased by 16% in constant currency) to US$2,427 million (H1/2014: US$2,458 million). Health Care services sales increased by 2% (21% in constant currency) to US$1,234 million (H1/2014: US$1,214 million). Dialysis product sales decreased by 4% (increased by 11% in constant currency) to US$1,193 million (H1/2014: US$1,244 million).
EBIT increased by 5% (12% in constant currency) to US$1,051 million (H1/2014: US$1,001 million). The EBIT margin was 12.9% (H1/2014: 13.5%). In Q2/2015, EBIT decreased by 2% (increased by 4% in constant currency) to US$547 million (Q2/2014: US$556 million). EBIT margin was 13.0% (Q2/2014: 14.5%).
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 3% (10% in constant currency) to US$450 million (H1/2014: US$439 million). In Q2/2015, net income grew by 3% (11% in constant currency) to US$241 million (Q2/2014: US$234 million).
Operating cash flow increased to US$832 million (H1/2014: US$562 million). Operating cash flow in H1/2014 was reduced by the US$115 million2 payment for the W.R.Grace bankruptcy settlement. The cash flow margin increased to 10.2% (H1/2014: 7.6%). In Q2/2015, operating cash flow decreased to US$385 million (Q2/2014: US$449 million), the cash flow margin was 9.2% (Q2/2014: 11.7%).
Fresenius Medical Care confirms its outlook for 2015. The company expects sales to grow by 5% to 7%, which equals a growth rate of 10% to 12% in constant currency. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0% to 5% in 2015.
The outlook is based on current exchange rates. Savings from the global efficiency program are included, while earnings contributions from potential acquisitions are not. The outlook reflects further operating cost investments within the Care Coordination segment.
1Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA 2See Annual Report 2014, page 152 f.
Fresenius Kabi Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.
11% organic sales growth in Q2
26% EBIT growth in constant currency in Q2
2015 outlook raised
Sales increased by 19% (8% in constant currency) to €2,932 million (H1/2014: €2,466 million). Organic sales growth was 8%. Acquisitions contributed 1% while divestitures reduced sales by 1%. Positive currency translation effects (11%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q2/2015, sales increased by 23% (11% in constant currency) to €1,538 million (Q2/2014: €1,253 million). Organic sales growth was 11%.
Sales in Europe grew by 3% (organic growth: 5%) to €1,052 million (H1/2014: €1,024 million). Sales in North America increased by 37% (organic growth: 13%) to €1,026 million (H1/2014: €747 million). Sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 22% (organic growth: 4%) to €564 million (H1/2014: €464 million). Sales in Latin America/Africa grew by 25% (organic growth: 11%) to €290 million (H1/2014: €231 million).
EBIT1 increased by 39% (18% in constant currency) to €571 million (H1/2014: €411 million). The EBIT margin was 19.5% (H1/2014: 16.7%). In Q2/2015, EBIT1 increased by 50% (26% in constant currency) to €314 million (Q2/2014: €210 million). The EBIT margin was 20.4% (Q2/2014: 16.8%).
Net income2 increased by 42% (22% in constant currency) to €309 million (H1/2014: €217 million). In Q2/2015, net income2 increased by 52% (30% in constant currency) to €169 million (Q2/2014: €111 million).
Operating cash flow increased by 65% to €354 million (H1/2014: €215 million) with a margin of 12.1% (H1/2014: 8.7%). In Q2/2015, operating cash flow increased to €271 million (Q2/2014: €173 million) with a margin of 17.6% (Q2/2014: 13.8%).
Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €40 million before tax were incurred in the first half of 2015 (Q2/2015: €30 million). These costs are reported in the Group segment Corporate/Other.
Fresenius Kabi raises its outlook3 for 2015 and now expects organic sales growth of 6% to 8% and EBIT growth in constant currency in the range of 18% to 21%. The implied EBIT margin is 19.0% to 20.0%. Previously, Fresenius Kabi projected organic sales growth of 4% to 7% and an EBIT growth in constant currency in the range of 11% to 14% with an implied EBIT margin in the range of 18.5% to 19.5%.
Fresenius Kabi’s outlook excludes ~€100 million costs before tax for the efficiency program. For segment reporting purposes, these costs will not be reported in the Fresenius Kabi segment but as special items in the Group segment Corporate/Other.
1Before special items 2Net income attributable to shareholders of Fresenius Kabi AG; before special items 3Based on the average exchange rates through July 24 and the exchange rates of July 24 applied to the remainder of the year, this implies sales of ~€5.9 billion and EBIT of ~€1.17 billion, at the lower end of the respective expected range
Fresenius Helios Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats approximately 4.5 million patients per year, thereof 1.2 million inpatients, and operates more than 34,000 beds.
18% EBIT increase in Q2
100 bps sequential EBIT margin increase
2015 outlook fully confirmed
Sales increased by 10% to €2,774 million (H1/2014: €2,521 million). Organic sales growth was 3% (H1/2014: 3%). Acquisitions contributed 8% while divestitures reduced sales by 1%. In Q2/2015, sales increased by 7% to €1,383 million (Q2/2014: €1,294 million), organic sales growth was 2% (Q2/2014: 3%).
EBIT1 grew by 23% to €307 million (H1/2014: €250 million). The EBIT margin increased to 11.1% (H1/2014: 9.9%). In Q2/2015, EBIT1 increased by 18% to €160 million (Q2/2014: €136 million). Sequentially, the EBIT margin increased by 100 bps to 11.6%.
Net income2 increased by 26% to €226 million (H1/2014: €179 million). In Q2/2015, net income2 increased by 17% to €119 million (Q2/2014: €102 million).
Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 3% to €2,583 million (H1/2014: €2,504 million). EBIT1 increased by 20% to €298 million (H1/2014: €248 million). The EBIT margin increased to 11.5% (H1/2014: 9.9%). Sales of the acquired hospitals consolidated for less than one year were €191 million. EBIT1 was €9 million with a margin of 4.7%.
The integration of the hospitals acquired from Rhön-Klinikum AG is fully on track. Amount and timing of targeted near-term cost synergies (€85 million p.a.) are confirmed. Integration costs were €8 million in H1/2015 (Q2/2015: €6 million) taking the total to date to €59 million. Total integration costs for 2014 and 2015 are confirmed at approximately €60 million.
Fresenius Helios fully confirms its outlook for 2015. Fresenius Helios projects organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT is expected to increase to €630 to €650 million.
Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~€10 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate/Other.
1Before special items 2Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items
Fresenius Vamed Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.
20% organic sales growth in Q2
Sequential growth acceleration in project business
2015 outlook fully confirmed
Sales increased by 16% (15% in constant currency) to €463 million (H1/2014: €398 million). Organic sales growth was 13%. Acquisitions contributed 2%. Sales in the project business increased by 17% to €202 million (H1/2014: € 173 million). Sales in the service business grew by 16% to €261 million (H1/2014: €225 million). In Q2/2015, sales increased by 23% to €255 million (Q2/2014: €207 million). Organic sales growth was 20%.
EBIT grew by 7% to €16 million (H1/2014: €15 million). The EBIT margin decreased to 3.5% (H1/2014: 3.8%). In Q2/2015, EBIT remained unchanged at €9 million (Q2/2014: €9 million). Sequentially, the EBIT margin increased by 10 bps to 3.5%.
Net income1 was unchanged at €10 million (H1/2014: €10 million). In Q2/2015, net income1 of €6 million was also at prior-year level (Q2/2014: €6 million).
Order intake decreased by 5% to €284 million (H1/2014: €300 million). As of June 30, 2015, order backlog was €1,479 million (Dec. 31, 2014: €1,398 million).
Fresenius Vamed fully confirms its outlook for 2015 and expects to achieve single-digit organic sales growth and EBIT growth of 5% to 10%.
1Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for the first half of 2015, a conference call will be held on July 30, 2015 at 2 p.m. CEDT (8 a.m. EDT). You are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, see Press, Audio/Video-Service. Following the call, a replay will be available on our website.
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This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius is coordinating efforts throughout its global corporate organization in response to the Haitian earthquake tragedy. Within the first two weeks of the initial major quake, company operations worldwide teamed up with other entities to overcome the catastrophic logistics challenge and funneled assistance to over 185,000 Haiti earthquake victims mainly through government agencies and established international disaster-relief and humanitarian-aid organizations.
From company locations in Latin and North America, Fresenius Medical Care and Fresenius Kabi have spearheaded the Group's endeavors to channel a combination of medicine, medical supplies and lifesaving aid to victims in the earthquake region. The first emergency airlift in which the company participated arrived in the Haitian capital, Port-au-Prince, five days after the initial temblor devastated the island republic.
To help provide essential medical aid and address pressing health needs in the devastated region, Fresenius Kabi operations in Chile responded promptly by shipping infusion solutions, anesthetics and anti-infectives as well as medical devices. The donation was airlifted by government-chartered aircraft one week after the first quake hit Haiti.
Fresenius Kabi's U.S.-based operations APP Pharmaceuticals donated a broad range of anti-infectives for the treatment of nearly 175,000 patients suffering from wound infections which typically accompany traumatic injuries, as well as help reduce the chance of infections following surgical procedures. These products also are helpful in treating other infections that could arise in the aftermath of a major natural disaster such as an earthquake. APP Pharmaceuticals also sent another shipment of intravenously administered drugs that will be used by surgeons and other health care professionals currently treating the injured in Haiti. The medications, which will treat 10,000 patients, include the anticoagulant heparin and anesthetic as well as anti-infective and anti-inflammatory medications.
Fresenius Medical Care North America chartered a cargo plane from Miami to Santo Domingo, Dominican Republic, nine days after the first major quake, contributing 10,000 pounds (4.5 metric tons) of dialysis supplies for the airlift. The Fresenius Medical Care team also offered space on its plane to other companies to transport additional supplies.
In addition to coordinating joint relief efforts with other corporations, Fresenius Medical Care North America announced that the company also established a matching dollar-for-dollar fund for donations made by employees. As a relief contributor, Fresenius Medical Care North America continues to play a leadership role within a health care cooperative which includes all dialysis providers, dialysis network members, industry groups and related government response authorities. This group has been meeting regularly to coordinate and mobilize joint efforts and resources to assist Haiti.
Fresenius is pursuing further relief measures and will continue to monitor the situation and provide assistance as warranted by needs in the region.
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2008, group sales were approximately €12.3 billion. On Sept. 30, 2009, the Fresenius Group had 129,218 employees worldwide.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Board of Management: Dr. Ulf M. Schneider (President and CEO), Rainer Baule, Dr. Francesco De Meo, Dr. Jürgen Götz, Dr. Ben Lipps, Stephan Sturm, Dr. Ernst Wastler
Supervisory Board: Dr. Gerd Krick (Chairman)
Registered Office: Bad Homburg, Germany/Commercial Register No. HRB 10660
Sales: €14.2 billion, +15% at actual rates, +13% in constant currency
EBIT: €2.1 billion, +19% at actual rates, +17% in constant currency
Adjusted net income*: €514 million, +14% at actual rates, +14% in constant currency
Excellent sales and earnings growth in all business segments
All financial targets met or exceeded
EBIT exceeds the €2 billion mark for the first time
Strong cash flow supports rapid de-leveraging
17th consecutive dividend increase proposed
*Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
Ulf Mark Schneider, CEO of Fresenius SE: "Fresenius took full advantage of its business opportunities in the past year. Despite a challenging macroeconomic environment, we have met or even exceeded our earnings guidance for 2009. Our comprehensive and well-diversified portfolio of products and services as well as our global presence proved to be valuable assets. Based on these outstanding results, we will propose the 17th consecutive increase in dividends to our shareholders. We will continue to pursue our long-term strategy which is based on sustainable, profitable growth."
Dividend increase proposed
Based on the excellent financial results the Management Board will propose to the Supervisory Board a dividend increase of 7% to €0.75 per ordinary share (2008: €0.70) and €0.76 per preference share (2008: €0.71). The total dividend distribution is expected to be €122 million.
Positive outlook for 2010
For 2010, Fresenius projects further improvements in its financial results: Sales growth in constant currency is projected to be in a 7 to 9% range. Adjusted net income* is expected to increase by 8 to 10% in constant currency.
The Group plans to invest approximately 5% of sales in property, plant and equipment.
The net debt/EBITDA ratio is expected to improve further and reach a level below 3.0.
*Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
Sales growth of 13% in constant currency
Group sales increased by 13% in constant currency and by 15% at actual rates to €14,164 million (2008: €12,336 million). Organic sales growth was 8%. Acquisitions contributed a further 5%. Currency translation had a positive impact of 2%.
Sales growth in the business segments was as follows:
In Europe sales grew by 11% in constant currency with organic sales growth contributing 7%. In North America sales grew by 16% in constant currency, mainly due to the consolidation of APP Pharmaceuticals from September 2008. Organic growth was 8%. Strong organic growth rates were achieved in the emerging markets, reaching 9% in Asia-Pacific and 12% in Latin America.
Group net income growth of 14% in constant currency
Group EBITDA increased by 17% in constant currency and by 19% at actual rates to €2,616 million (2008 adjusted: €2,203 million). Group operating income (EBIT) grew by 17% in constant currency and by 19% at actual rates to €2,054 million (2008 adjusted: €1,727 million). Group EBIT exceeded the €2 billion mark for the first time. The Group's EBIT margin increased to 14.5% (2008 adjusted: 14.0%).
Group net interest was -€580 million (2008: -€431 million). Lower average interest rates on liabilities of Fresenius Medical Care were more than offset by incremental debt related mainly to the acquisition of APP Pharmaceuticals.
The other financial result was -€31 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€37 million and the Contingent Value Rights (CVR) of €6 million. Both are non-cash items.
The adjusted Group tax* rate was 31.4% (2008 adjusted: 33.4%). This decrease was largely driven by the revaluation of a tax claim at Fresenius Medical Care in Q2 2009.
Non-controlling interest increased to €497 million (2008: €413 million), of which 93% was attributable to the minority interest in Fresenius Medical Care.
Adjusted Group net income** grew both in constant currency and at actual rates by 14% to €514 million (2008 adjusted: €450 million). Adjusted earnings per ordinary share increased to €3.18 and adjusted earnings per preference share increased to €3.19 (2008 adjusted: ordinary share €2.85, preference share €2.86). This represents an increase of 12% for both share classes.
The Group's US GAAP financial results as of December 31, 2009 and as of December 31, 2008 include the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Those special items are recognized in the financial result of the "Corporate/Other" segment. Adjusted earnings represent the Group's business operations in the reporting period. In addition, the Group's US GAAP financial statements as of December 31, 2008 include several special items related to the acquisition of APP Pharmaceuticals. Please see page 14 of this Investor News for the reconciliation to earnings according to US GAAP.
Net income*** (including special items) was €494 million or €3.06 per ordinary share and €3.07 per preference share.
*Adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals.
**Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
***Net income attributable to Fresenius SE.
Continued investments in growth
The Fresenius Group spent €671 million on property, plant and equipment (2008: €764 million). This was below the initially projected range of €700 to 750 million due to the cautious investment policy pursued by the business segments. At 4.7% of sales, capital expenditures returned to our target range of approx. 5%. Acquisition spending was €260 million (2008: €3,853 million, primarily due to the acquisition of APP Pharmaceuticals).
Excellent cash flow development
Operating cash flow increased by 45% to €1,553 million (2008: €1,074 million), driven by strong earnings growth and tight working capital management. The cash flow margin improved to 11.0% (2008: 8.7%). Net capital expenditure was €662 million (2008: €736 million). Cash flow before acquisitions and dividends increased 2.6-fold to €891 million (2008: €338 million). Free cash flow after acquisitions and dividends was €389 million (2008: -€2,864 million).
Solid balance sheet structure
The Fresenius Group's total assets grew by 2% to €20,882 million (December 31, 2008: €20,544 million). In constant currency, the increase was 3%. Current assets increased by 6% to €5,363 million (December 31, 2008: €5,078 million). Non-current assets were virtually unchanged from previous year's level at €15,519 million (December 31, 2008: €15,466 million).
Total shareholders' equity increased by 10% to €7,652 million (December 31, 2008: €6,943 million). The equity ratio (including non-controlling interest) improved to 36.6% (December 31, 2008: 33.8%).
Group debt decreased by 6% to €8,299 million (December 31, 2008: €8,787 million).
As of December 31, 2009, the net debt/EBITDA ratio was 3.0 and improved significantly from 3.6 at December 31, 2008 (pro forma the acquisition of APP Pharmaceuticals and excluding special items). With that, the 2010 target range of 2.5 to 3.0 has been reached one year ahead of time.
Given the progress in de-leveraging and improved conditions in the debt capital markets since the acquisition of APP, Fresenius has launched an amendment request to its 2008 syndicated credit agreement with the aim to reduce its average cost of debt and to gain enhanced flexibility for further growth.
Number of employees increased
As of December 31, 2009, Fresenius increased the number of its employees by 7% to 130,510 (December 31, 2008: 122,217). The increase was mainly driven by Fresenius Medical Care and by Fresenius Helios' acquisition of five acute care clinics.
Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.
On April 22, 2009, the European Commission granted Fresenius Biotech the approval for Removab (catumaxomab) for the treatment of malignant ascites. Removab was launched in Germany in May 2009. Market launch is in preparation in other European countries. As of December 31, 2009, Fresenius Biotech achieved Removab sales of more than €1.6 million.
Fresenius Biotech's EBIT was -€44 million (2008: -€47 million). For 2010, Fresenius Biotech expects an EBIT between -€35 and -40 million.
Business Segments
Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of December 31, 2009, Fresenius Medical Care was treating 195,651 patients in 2,553 dialysis clinics.
Excellent organic sales growth of 8%
2010 outlook: Sales of more than US$12 billon and net income of US$950 to 980 million expected
Fresenius Medical Care achieved sales growth of 6% to US$11,247 million (2008: US$10,612 million). Excellent organic growth accounted for 8%, net acquisitions contributed a further 1%. Currency translation effects had a negative impact of 3%.
Sales in dialysis care increased by 8% to US$8,350 million (2008: US$7,737 million). Dialysis products sales grew by 1% at actual rates and 6% in constant currency to US$2,897 million (2008: US$2,875 million).
In North America sales increased by 9% to US$7,612 million (2008: US$7,005 million). Dialysis services revenue increased by 9% to US$6,794 million. Average revenue per treatment for the U.S. clinics increased to US$357 in the fourth quarter of 2009 compared to US$335 for the same quarter in 2008 and US$348 for the third quarter of 2009. This development was principally attributable to reimbursement increases and increased utilization of pharmaceuticals. Sales in dialysis products improved by 8% to US$818 million.
Sales outside North America ("International" segment) grew by 1% at actual rates and 9% in constant currency to US$3,635 million (2008: US$3,607 million). Sales in dialysis care increased by 4% (14% in constant currency) to US$1,556 million. Dialysis products sales decreased by 2% (increase by 6% in constant currency) to US$2,079 million.
EBIT rose by 5% to US$1,756 million (2008: US$1,672 million) resulting in an EBIT margin of 15.6% (2008: 15.8%). This was mainly due to higher personnel expenses, cost increases for pharmaceuticals, and the launch of a generic product for the phosphate binder PhosLo® by a competitor in the United States. These effects were partially offset by an increase in revenue per treatment, the strong development in dialysis products, and successful cost control measures.
Net income* increased by 9% to US$891 million (2008: US$818 million).
For 2010, Fresenius Medical Care expects to achieve revenue of more than US$12 billion. Net income1 is expected to be between US$950 and 980 million.
For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.
*Net income attributable to Fresenius Medical Care AG & Co. KGaA
Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and out-patient environments. The company also is a leading provider of medical devices and transfusion technology products.
Strong organic sales growth of 8%
EBIT margin increased to 19.7%
2010 outlook: Organic sales growth between 7 and 9% and EBIT margin between 18 and 19% expected
Fresenius Kabi increased sales by 24% at actual rates and 26% in constant currency to €3,086 million (2008: €2,495 million). Organic sales growth was 8%. Net acquisitions contributed a further 18%. Currency translation had a net negative impact of 2%. The depreciation of currencies in Great Britain, Poland and Mexico against the euro was only partially offset by the strengthening of the Chinese yuan.
In Europe, sales reached €1,566 million (2008: €1,499 million), driven by 5% organic growth. In North America, sales increased to €728 million (2008: €336 million) primarily due to the full-year consolidation of APP Pharmaceuticals. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 15% to €482 million (2008: €381 million). Sales in Latin America and Africa increased to €310 million (2008: €279 million), and organic growth was 13%.
EBIT grew by 37% to €607 million (2008: €443 million). EBIT includes a €26 million non-cash charge related to the amortization of APP Pharmaceuticals' intangible assets. The EBIT margin increased to 19.7% (2008: 17.8%). Net interest grew to -€302 million (2008: -€145 million), driven by the APP acquisition financing. Net income* was at previous year's level of €200 million.
Sales at APP Pharmaceuticals increased by 14% to US$889 million. APP Pharmaceuticals achieved significant sales growth of 18% in its product portfolio excluding Heparin in the fourth quarter, taking full year 2009 sales growth to 8%. Adjusted EBITDA** reached US$347 million. EBIT was US$273 million. EBIT includes a US$37 million non-cash charge related to the amortization of acquisition-related intangible assets. The EBIT margin was 30.7%. APP Pharmaceuticals received seven drug approvals from the U.S. Food and Drug Administration (FDA) in fiscal year 2009.
Operating cash flow of Fresenius Kabi nearly doubled to €397 million (2008: €205 million). This was primarily achieved through tight working capital management. Given only moderate growth in capital expenditures, cash flow before acquisitions and dividends more than tripled to €272 million (2008: €83 million).
Fresenius Kabi targets organic sales growth between 7 and 9% for 2010. Furthermore, Fresenius Kabi forecasts an EBIT margin in a range between 18 and 19%. Whilst still at an excellent level, the slightly reduced margin guidance reflects delayed IV drug market launches, lower Heparin product sales and the expectation of further increased price competition in the US IV generics market. For the mid-term, Fresenius Kabi expects organic sales growth of 7 to 10 % p.a. and an EBIT margin in the 18 to 20 % range.
Special items relating to the acquisition of APP Pharmaceuticals are included in the segment "Corporate/Other".
*Net income attributable to Fresenius Kabi AG.
**Non-GAAP financial measures - Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP.
Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 61 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof ~600,000 in-patients, and operates a total of more than 18,500 beds.
Excellent sales and earnings growth
2010 outlook: Organic sales growth of 3 to 5% and EBIT in a range between €220 and 230 million expected
Fresenius Helios increased sales by 14% to €2,416 million (2008: €2,123 million). Organic growth was at a strong 7%, to a large degree driven by an increase in hospital admissions. Net acquisitions contributed 7% to overall sales growth.
EBIT grew by 17% to €205 million (2008: €175 million) due to the excellent business operations of the established clinics. The EBIT margin reached 8.5% (2008: 8.2%). Net income* improved by 34% to €107 million (2008: €80 million).
At HELIOS' established clinics, sales rose by 7% to €2,253 million. EBIT increased by 22% to €213 million. The EBIT margin improved to 9.5% (2008: 8.2%). The newly acquired clinics (consolidation <1 year) achieved sales of €163 million and an EBIT of €-8 million, in line with our expectations.
For 2010, Fresenius Helios expects to achieve organic sales growth of 3 to 5%. EBIT is projected to increase in a range between €220 and 230 million.
*Net income attributable to HELIOS Kliniken GmbH.
Fresenius Vamed
Fresenius Vamed offers engineering and services for hospitals and other health care facilities.
Record sales, EBIT and net income
Order intake and order backlog at new all-time highs
Outlook 2010: Sales and EBIT growth between 5% and 10% expected
Fresenius Vamed achieved excellent sales and earnings growth and new all-time highs for order intake and order backlog.
Sales increased by 18% to €618 million (2008: €524 million). Organic sales growth was 15%. The clinics in the Czech Republic acquired from Fresenius Helios contributed 3%. Sales in the project business rose by 25% to €420 million (2008: €336 million). Sales in the service business increased by 5%** to €198 million (2008: €188 million).
EBIT grew by 20% to €36 million (2008: €30 million). The EBIT margin improved slightly to 5.8% (2008: 5.7%). Net income* rose by 4% to €27 million (2008: €26 million).
The excellent development of order intake and order backlog continued: Order intake in the project business increased by 27% to €539 million (2008: €425 million). In the fourth quarter of 2009, order intake was €226 million, including turn-key contracts for three clinics in Austria. Furthermore, VAMED received an order to deliver medical supplies to the Ukraine with an order volume of approximately €100 million. Order backlog increased by 19% to €679 million (December 31, 2008: €571 million).
In 2010, Fresenius Vamed expects to achieve both sales and EBIT growth in a range between 5 and 10%.
*Net income attributable to VAMED AG.
**Adjusted for project orders carried-out for the Vienna General Hospital - university clinics (AKH), which were included in the service business in 2008, sales growth was 22 %.
Press Conference and Video Webcast
As part of the publication of the results for fiscal year 2009, a press conference will be held at the Fresenius headquarters in Bad Homburg on February 24, 2010 at 10 a.m. CET. You are cordially invited to follow the conference in a live broadcast over the Internet at www.fresenius.com see Press / Audio-Video-Service. Following the meeting, a recording of the conference will be available as video-on-demand.
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2009, group sales were approx. €14.2 billion. On December 31, 2009 the Fresenius Group had 130,510 employees worldwide.
For more information visit the Company's website at www.fresenius.com.
This release 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 conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Board of Management: Dr. Ulf M. Schneider (President and CEO), Rainer Baule, Dr. Francesco De Meo, Dr. Jürgen Götz, Dr. Ben Lipps, Stephan Sturm, Dr. Ernst Wastler
Supervisory Board: Dr. Gerd Krick (Chairman)
Registered Office: Bad Homburg, Germany/Commercial Register No. HRB 10660
Fresenius Group Figures
Consolidated statement of income (US GAAP)
Reconciliation to net income according to US GAAP
Key figures of the balance sheet (US GAAP)
Cash flow statement (US GAAP)
Segment reporting by business segment Q1-4 (US GAAP)
Segment reporting by business segment Q4 (US GAAP)
