Fresenius Kabi has nearly doubled production capacity at its infusion solutions plant in the Spanish town of Vilassar de Dalt, near Barcelona. The investment volume for the expansion is about €20 million. The Vilassar de Dalt plant produces primarily for the European market, and has about 140 employees.

Fresenius has put its new website online: www.fresenius.com. The relaunched website combines technology and design in a modern, user-friendly Internet format. The content has been updated and rearranged, with easy-to-use navigation. Powerful photographs on the homepage will guide visitors to interesting topics. The responsive design optimizes the display of all content on mobile devices and ensures quick loading times.

Under the “Stories” menu point, visitors can learn more about Fresenius’ patients, employees, business locations and operations. The stories are not only about facts, figures and business results, but tell a broader public about the company’s values and aspirations.

Patients, investors and journalists will find other relevant information presented in dedicated chapters. A new feature for journalists and other media representatives is the “Media Center” page, where Fresenius is providing photographs, videos and other materials for editorial use.

Job seekers and applicants can find all the information they need about Fresenius as an employer, along with job postings and additional services, under the Fresenius Careers website, which has also been relaunched. www.career.fresenius.com now features a new, responsive design, embedded social media channels, and an improved menu structure and user interface.

The application process has been simplified. Job candidates can now execute the entire process – from checking for openings to completing an application – on their tablet or smartphone.

 

Moody’s Investors Service has upgraded the corporate credit rating of Fresenius from Ba1 to Baa3 with a stable outlook.

The upgrade reflects Moody's view that Fresenius' business profile has improved over the last years supported by higher business and geographical diversification and increased scale as well as a strong track record of profitable growth and deleveraging post acquisitions.

In January 2015, Standard & Poor’s upgraded the corporate credit rating of Fresenius from previously BB+ to BBB- with a stable outlook.

Fresenius continues to view itself as an active consolidator in its markets and will continue to focus on financing acquisitions primarily with debt.

 

• Strong organic growth and very positive earnings development in North America
• Strong growth dynamic in Care Coordination activities
• International performance furthermore impacted by currency fluctuations
• EBIT and net income influenced by one-time items

Third quarter 2015 key figures

Net revenue: $4,231 million, +3%
Operating income (EBIT): $614 million, +4%
Operating income (EBIT) excluding one-time items: $632 million, +5%
Net income¹: $262 million, -3%
Net income excluding one-time items¹: $284 million +2%
Basic earnings per share: $0.86, -4%

First nine months 2015 key figures

Net revenue: $12,390 million, +8%
Operating income (EBIT): $1,665 million, +5%
Operating income (EBIT) excluding one-time items: $1,683 million, +5%
Net income¹: $713 million, 0%
Net income excluding one-time items¹: $735 million +3%
Basic earnings per share: $2.34, 0%

¹ attributable for shareholders of Fresenius Medical Care AG & Co. KGaA

Rice Powell, chief executive officer of Fresenius Medical Care stated: “With the dynamic growth in our Care Coordination business and our continued strong operating performance in our core businesses, we are well positioned for future success. We are very satisfied with our accomplishments in the third quarter despite the unfavorable currency impacts. We confirm our outlook for the full year 2015 and remain focused to further strengthen our business to deliver high quality care for our patients.”

Third quarter 2015

Revenue

Net revenue for the third quarter of 2015 increased by 3% to $4,231 million (+9% at constant currency) as compared to the third quarter of 2014. Organic revenue growth worldwide was 6%. Net Health Care revenue grew by 6% to $3,402 million (+10% at constant currency). After two very strong quarters in the product business, we are closer to a normalized organic revenue level. Dialysis product revenue was down by 9% to $829 million as compared to the third quarter of 2014 mainly due to a negative currency impact in the three International segments. On a constant currency basis, the dialysis product revenue increased by 2%.

North America revenue for the third quarter of 2015 increased by 11% to $3,013 million. Organic revenue growth was 6%. Net Health Care revenue grew by 12% to $2,794 million with a same market treatment growth of 5%. Net Dialysis Care revenue increased by 6% to $2,314 million and Care Coordination revenue increased by 56% to $480 million (organic growth of 17%). Dialysis product revenue increased by 3% to $219 million as compared to the third quarter of 2014.

International revenue decreased by 12% to $1,213 million (an increase of 5% on a constant currency basis). Organic revenue growth was 6%. While the underlying organic revenue developed positively, the currency translation resulted in a negative impact. Net Health Care revenue decreased by 13% to $608 million (+6% at constant currency). Dialysis product revenue decreased by 12% to $605 million (+3% at constant currency).

International segments:
Europe, Middle East and Africa (EMEA) revenue decreased by 16% to $659 million (+2% at constant currency). Organic revenue growth was 2%. Net Health Care revenue decreased by 16% to $309 million (+3% at constant currency). Dialysis product revenue decreased by 16% to $350 million (stable at constant currency).

Asia-Pacific revenue decreased by 2% to $378 million (+9% at constant currency). Organic revenue growth was 10%. Net Health Care revenue decreased by 9% to $168 million (+4% at constant currency). Dialysis product revenue increased by 3% to $210 million (+13% at constant currency).

Latin America revenue decreased by 18% to $176 million (+7% at constant currency). Organic revenue growth was 13%. Net Health Care revenue decreased by 12% to $131 million (+12% at constant currency). Dialysis product revenue decreased by 33% to $44 million (a decrease of 6% at constant currency). The regional performance was impacted by the divestiture of our dialysis service business in Venezuela.

Earnings

Operating income (EBIT) increased by 4% from $590 million in the third quarter of 2014 to $614 million in the third quarter of 2015. Operating income, excluding one-time items, increased by 5% from $601 million to $632 million; adjusted for: a negative impact ($26 million) from the divestiture of the dialysis service business in Venezuela, a negative impact due to the closing of a manufacturing plant in the third quarter of 2014 ($11 million) and a positive impact of $8 million from the sale of our European marketing rights for certain renal pharmaceuticals to our joint venture Vifor Fresenius Medical Care Renal Pharma. The sale of remaining marketing rights is being recognized as they are transferred at the country level. Therefore, we anticipate additional gains will be realized in the fourth quarter of 2015.

Operating income for North America for the third quarter of 2015 was $515 million, an increase of 25% as compared to the third quarter of 2014.

International segments:
Operating income for EMEA for the third quarter of 2015 was $130 million, a decrease of 14% as compared to the third quarter of 2014. Operating income, excluding one-time items, was $122 million. Operating income for Asia-Pacific for the third quarter of 2015 was $68 million, a decrease of 25% as compared to the third quarter of 2014. Operating income for Latin America for the third quarter of 2015 was ($8 million). Operating income, excluding one-time items, was $18 million.

Net interest expense for the third quarter of 2015 was with $100 million at the same level as compared to the third quarter of 2014.

Income tax expense was $168 million for the third quarter of 2015, which translates into an effective tax rate of 32.8%. This compares to income tax expense of $162 million and a tax rate of 32.9% for the third quarter of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2015 was $262 million, a decrease of 3% compared to $271 million for the third quarter of 2014. Net income attributable to noncontrolling interest increased to $84 million ($58 million in the third quarter of 2014) due to the strong earnings development in North America. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2015, excluding one-time items, increased by 2% to $284 million.

Basic earnings per share (EPS) for the third quarter of 2015 was $0.86, a decrease of 4% compared to the corresponding number for the third quarter of 2014. The weighted average number of shares outstanding for the third quarter of 2015 was approximately 304.7 million shares, compared to approximately 302.7 million shares for the third quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the last twelve months.

Cash flow

In the third quarter of 2015, the company generated $579 million, representing roughly 14% of revenue, in net cash provided by operating activities, compared to the corresponding figure of last year of $712 million.

A total of $224 million was spent for capital expenditures, net of disposals. Free cash flow was $355 million compared to $488 million in the third quarter of 2014.

A total of $57 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $298 million as compared to ($125) million in the third quarter of 2014.

First nine months 2015

Revenue and earnings

Net revenue for the first nine months of 2015 increased by 8% to $12,390 million (+13% at constant currency) as compared to the first nine months of 2014. Organic revenue growth worldwide was 7%.

Operating income (EBIT) for the first nine months of 2015 was $1,665 million as compared to $1,591 million in the first nine months of 2014. This represents an increase of 5%. Operating income, excluding one-time items, increased by 5% to $1,683 million.

Net interest expense for the first nine months of 2015 was $304 million as compared to $294 million in the first nine months of 2014.

Income tax expense for the first nine months of 2015 was $441 million, which translates into an effective tax rate of 32.4%. This compares to income tax expense of $440 million and a tax rate of 33.9% for the first nine months of 2014. For the full year, the company expects the tax rate to be on the lower end of its guidance range of 33 to 34%.

For the first nine months of 2015, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was stable at $713 million ($710 million in the same period in the previous year). Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA excluding one-time items for the first nine months of 2015 increased by 3% to $735 million.

In the first nine months of 2015, basic earnings per share (EPS) remained stable with $2.34 as compared to the corresponding number for the first nine months of 2014 ($2.35). The weighted average number of shares outstanding during the first nine months of 2015 was approximately 304.2 million shares.

Cash flow

In the first nine months of 2015, the company generated $1,412 million in net cash provided by operating activities, representing 11.4% of revenue, as compared to $1,274 million for the same period in 2014.

A total of $636 million was spent for capital expenditures, net of disposals. Free cash flow for the first nine months of 2015 was $776 million as compared to $635 million in the first nine months of 2014.

A total of $124 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $652 million as compared to ($410) million in the first nine months of 2014.

Employees

As of September 30, 2015, Fresenius Medical Care had 102,591 employees (full-time equivalents) worldwide, compared to 97,327 employees at the end of September 2014. This increase was mainly attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were stable at $25,414 million (Dec. 31, 2014: $25,447 million). Current assets were comparable at $6,760 million (Dec. 31, 2014: $6,725 million). Non-current assets were slightly down at $18,654 million (Dec. 31, 2014: $18,722 million). Total equity increased by 2% to $10,243 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,093 million (Dec. 31, 2014: $9,532 million). As of September 30, 2015, the debt/EBITDA ratio was 2.9 (Dec. 31, 2014: 3.1).

Please refer to the attachments for a complete overview of the results for the third quarter and first nine months of 2015.

Outlook¹ confirmed

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0-5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $300 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

In addition we confirm our 2016 projections. We expect revenue to increase around 7-10% (at constant currency) and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15-20%.

We expect the progress in our business to be consistent with our long-term targets.

¹The outlook/projection provided for 2015/2016 is based on current exchange rates. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter 2015 on Thursday, October 29, 2015 at 3.30 p.m. CET/ 10.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.freseniusmedicalcare.com in the “Investors/Events & Presentations” section. A replay will be available shortly after the call.

If no timeframe is specified, information refers to the first nine months of 2015.

For a detailed overview of special items please see the reconciliation tables on pages 17-18.

Q3/2015:

 

• Sales €6.9 billion (+16% at actual rates, +7% in constant currency)
• EBIT¹ €1,027 million (+25% at actual rates, +12% in constant currency)
• Net income² €367 million (+31% at actual rates, +20% in constant currency)

Q1-3/2015:

• Sales €20.4 billion (+22% at actual rates, +11% in constant currency)
• EBIT¹ €2.8 billion (+28% at actual rates, +14% in constant currency)
• Net income² €1,009 million (+31% at actual rates, +19% in constant currency)

Ulf Mark Schneider, CEO of Fresenius, said: “Our strong growth trend continued with double-digit constant currency sales and earnings growth in the first nine months. All business segments contributed to the excellent financial results. Fresenius Kabi in particular stood out, benefiting from drug shortages and new product launches in the U.S. market. We raise our Group earnings guidance for 2015 and remain optimistic about the positive fundamentals in our markets.”

^{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 nine months of 2015 and strong prospects for the remainder of the year, Fresenius raises its 2015 Group earnings guidance. Net income² is now expected to grow by 20% to 22% in constant currency. Previously, Fresenius expected net income² growth of 18% to 21% in constant currency. The company fully confirms its Group sales guidance. Sales are expected to increase by 8% to 10% in constant currency.

The net debt/EBITDA³ ratio is now expected to be below 3.0 at the end of 2015. Previously, Fresenius expected the ratio to be approximately 3.0.

^{1 Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€27.4 billion and net income of ~€1.42 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 (€12 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 average exchange rates for the last twelve months for both net debt and EBITDA; without major unannounced acquisitions; before special items}

11% sales growth in constant currency
Group sales increased by 22% (11% in constant currency) to €20,369 million (Q1-3/2014: €16,711 million). Organic sales growth was 6%. Acquisitions contributed 5%. In Q3/2015, Group sales increased by 16% (7% in constant currency) to €6,940 million (Q3/2014: €5,978 million). Organic sales growth was 6%. Acquisitions contributed 2%, while divestitures reduced sales by 1%.
 

Group sales by region:

 

19% Group net income¹ growth in constant currency
Group EBITDA² increased by 26% (13% in constant currency) to €3,674 million (Q1-3/2014: €2,905 million). Group EBIT² increased by 28% (14% in constant currency) to €2,849 million (Q1-3/2014: €2,223 million). The EBIT margin² was 14.0% (Q1 3/2014: 13.3%). In Q3/2015 Group EBIT² increased by 25% (12% in constant currency) to €1,027 million (Q3/2014: €820 million), the EBIT margin² was 14.8% (Q3/2014: 13.7%).

Group net interest increased to -€476 million (Q1-3/2014: -€431 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects. In Q3/2015, Group net interest of -€146 million was slightly below the prior-year level (Q3/2014: €148 million). More favorable financing terms offset negative currency translation effects.

The Group tax rate² was 29.6% (Q1-3/2014: 29.5%). In Q3/2015, the Group tax rate was 29.7% (Q3/2014: 29.3%).

Noncontrolling interest was €661 million (Q1-3/2014: €495 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income³ before special items increased by 31% (19% in constant currency) to €1,009 million (Q1-3/2014: €768 million). Earnings per share¹ increased by 31% (19% in constant currency) to €1.86 (Q1-3/2014: €1.42). In Q3/2015, Group net income³ before special items increased by 31% (20% in constant currency) to €367 million (Q3/2014: €281 million). Earnings per share¹ increased by 31% (19% in constant currency) to €0.68 (Q3/2014: €0.52).

Group net income³ including special items increased by 23% (12% in constant currency) to €999 million (Q1-3/2014: €810 million). Earnings per share³ increased by 23% (11% in constant currency) to €1.84 (Q1-3/2014: € 1.50). In Q3/2015, Group net income³ including special items increased by 29% (18% in constant currency) to €357 million (Q3/2014: €276 million). Earnings per share³ increased by 29% (18% in constant currency) to €0.66 (Q3/2014: €0.51).

A reconciliation to earnings according to U.S. GAAP can be found on pages 17-18 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 €950 million (Q1-3/2014: €854 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €272 million (Q1-3/2014: €1,861 million).

Strong cash flow development
Operating cash flow increased by 27% to €2,151 million (Q1-3/2014: €1,695 million) with a margin of 10.6% (Q1-3/2014: 10.1%). Operating cash flow in the prior-year period was reduced by the US$115 million¹ payment for the W.R. Grace bankruptcy settlement. Operating cash flow in Q3/2015 reached a very strong €900 million, but could not quite match the exceptional prior-year quarter (Q3/2014: €945 million). The same applies to the cash flow margin of 13.0% (Q3/2014: 15.8%).

Net capital expenditure increased to €932 million (Q1-3/2014: €848 million). Free cash flow before acquisitions and dividends improved to €1,219 million (Q1-3/2014: €847 million). Free cash flow after acquisitions and dividends increased to €574 million (Q1 3/2014: €1,154 million).

^{1 See Annual Report 2014, page 152 f.}

Solid balance sheet structure
The Group’s total assets increased by 6% (2% in constant currency) to €42,169 million (Dec. 31, 2014: €39,897 million). Current assets grew by 5% (3% in constant currency) to €10,550 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 6% (1% in constant currency) to €31,619 million (Dec. 31, 2014: € 29,869 million).

Total shareholders’ equity increased by 11% (7% in constant currency) to €17,170 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.7% (Dec. 31, 2014: 38.8%).

Group debt decreased by 1% (-5% in constant currency) to €15,237 million (Dec. 31, 2014: € 15,454 million). As of September 30, 2015, the net debt/EBITDA ratio was 2.93¹ (2.89¹ 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 provider of products and services for individuals with renal diseases. As of September 30, 2015, Fresenius Medical Care was treating 290,250 patients in 3,402 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.

• Strong Q3 sales growth in North America
• Adverse currency developments and special items weigh on business outside North America
• 2015 outlook confirmed

 

Sales increased by 8% (13% in constant currency) to US$12,390 million (Q1-3/2014: US$11,511 million). Organic sales growth was 7%. Acquisitions contributed 7%, while divestitures reduced sales by 1%. Currency effects reduced sales by -5%. In Q3/2015, sales increased by 3% (9% in constant currency) to US$4,231 million (Q3/2014: US$4,113 million).

Health Care services sales (dialysis services and care coordination) increased by 11% (15% in constant currency) to US$9,929 million (Q1-3/2014: US$8,928 million). Dialysis product sales decreased by 5% (increased by 7% in constant currency) to US$2,461 million (Q1 3/2014: US$2,583 million).

In North America sales increased by 15% to US$8,730 million (Q1-3/2014: US$7,624 million). Health Care services sales grew by 15% to US$8,087 million (Q1-3/2014: US$7,015 million). Dialysis product sales increased by 6% to US$643 million (Q1-3/2014: US$609 million).

Sales outside North America decreased by 5% (increased by 12% in constant currency) to US$3,639 million (Q1-3/2014: US$3,843 million). Regional financial results were impacted by special items². Health Care services sales decreased by 4% (increased by 15% in constant currency) to US$1,842 million (Q1-3/2014: US$1,913 million). Dialysis product sales decreased by 7% (increased by 8% in constant currency) to US$1,797 million (Q1-3/2014: US$1,930 million).

EBIT increased by 5% (10% in constant currency) to US$1,665 million (Q1-3/2014: US$1,591 million). The EBIT margin was 13.4% (Q1-3/2014: 13.8%). Adjusted for special items³ EBIT increased by 5% to US$1,683 million. In Q3/2015, EBIT increased by 4% (8% in constant currency) to US$614 million (Q3/2014: US$590 million). The EBIT margin increased to 14.5% (Q3/2014: 14.3%). EBIT excluding special items³ increased by 5% to $632 million.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA of US$713 million was at prior-year level (Q1-3/2014: US$710 million). Net income attributable to non-controlling interest increased by 41% to US$207 million, mainly due to the strong earnings development in North America. In constant currency net income increased by 6%. Net income excluding special items⁴ increased by 3% to US$735 million. In Q3/2015, net income decreased by 3% (-1% in constant currency) to US$262 million (Q3/2014: US$271 million). Net income excluding special items⁴ increased by 2% to US$284 million.

Operating cash flow increased by 11% to US$1,412 million (Q1-3/2014: US$1,274 million). Operating cash flow in the prior-year period was reduced by the US$115 million⁵ payment for the W.R.Grace bankruptcy settlement. The cash flow margin increased to 11.4% (Q1 3/2014: 11.1%). In Q3/2015, operating cash flow reached a very strong US$579 million, but could not match the exceptional prior-year quarter (Q3/2014: US$712 million). The same applies to the cash flow margin of 13.7% (Q3/2014: 17.3%).

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.

For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.

^{1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 Divestiture of dialysis business in Venezuela and European pharmaceutical business3 2015 before divestiture of dialysis business in Venezuela (-US$26 million before tax) and European pharmaceutical business (US$8 million before tax); 2014 before closing of manufacturing plant (-US$11 million before tax)4 2015 before divestiture of dialysis business in Venezuela (-US$27 million after tax) and European pharmaceutical business (US$5 million after tax); 2014 before closing of manufacturing plant ( US$7 million after tax)5 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.

• 10% organic sales growth in Q3
• 19% constant currency EBIT1 growth in Q3
• 2015 outlook: organic sales growth of ~8% and constant currency EBIT1 growth of 19% to 22% expected

Sales increased by 18% (8% in constant currency) to €4,431 million (Q1-3/2014: €3,760 million). Organic sales growth was 9%. Acquisitions contributed 1% while divestitures reduced sales by 2%. Positive currency translation effects (10%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q3/2015, sales increased by 16% (9% in constant currency) to €1,499 million (Q3/2014: €1,294 million). Organic sales growth was 10%.

Sales in Europe grew by 2% (organic growth: 4%) to €1,566 million (Q1-3/2014: €1,538 million). Sales in North America increased by 39% (organic growth: 16%) to €1,555 million (Q1-3/2014: €1,118 million). North American sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 19% (organic growth: 4%) to €862 million (Q1-3/2014: €723 million). Sales in Latin America/Africa grew by 18% (organic growth: 12%) to €448 million (Q1-3/2014: €381 million).

EBIT¹ increased by 38% (19% in constant currency) to €872 million (Q1-3/2014: €634 million). The EBIT margin¹ was 19.7% (Q1-3/2014: 16.9%). In Q3/2015, EBIT¹ increased by 35% (19% in constant currency) to €301 million (Q3/2014: €223 million). The EBIT margin¹ was 20.1% (Q3/2014: 17.2%).

Net income² increased by 42% (23% in constant currency) to €479 million (Q1-3/2014: €337 million). In Q3/2015, net income² increased by 42% (25% in constant currency) to €170 million (Q3/2014: €120 million).

Operating cash flow increased by 36% to €589 million (Q1-3/2014: €432 million) with a margin of 13.3% (Q1-3/2014: 11.5%). In Q3/2015, operating cash flow increased to €235 million (Q3/2014: €217 million) with a margin of 15.7% (Q3/2014: 16.8%).

Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €50 million before tax were incurred in the first nine months of 2015 (Q3/2015: €10 million). The remainder of approx. €50 million will be recorded in Q4/2015. These costs are reported in the Group segment Corporate/Other.

Fresenius Kabi raises its outlook³ for 2015 and now expects organic sales growth of ~8% and constant currency EBIT¹ growth in the range of 19% to 22% with an implied EBIT margin¹ of approximately 20.0%. Previously, Fresenius Kabi projected organic sales growth of 6% to 8% and constant currency EBIT¹ growth in the range of 18% to 21% with an implied EBIT margin in the range of 19.0% to 20.0%.

^{1 Before special items2 Net income attributable to shareholders of Fresenius Kabi AG; before special items3 Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€5.9 billion (equivalent to 8% organic sales growth) and EBIT1 of ~€1.18 billion (equivalent to 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 more than 4.5 million patients per year, thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

• 12% EBIT¹ growth in Q3
• 20 bps sequential EBIT margin¹ increase
• 2015 outlook confirmed

 

Sales increased by 7% to €4,167 million (Q1-3/2014: €3,883 million). Organic sales growth was 3% (Q1-3/2014: 4%). Acquisitions contributed 5% while divestitures reduced sales by 1%. In Q3/2015, sales increased by 2% to €1,393 million (Q3/2014: €1,362 million), organic sales growth was 2% (Q3/2014: 6%).

EBIT¹ grew by 19% to €472 million (Q1-3/2014: €397 million). The EBIT margin¹ increased to 11.3% (Q1-3/2014: 10.2%). In Q3/2015, EBIT¹ increased by 12% to €165 million (Q3/2014: €147 million). Sequentially, the EBIT margin¹ increased by 20 bps to 11.8%.

Net income² increased by 23% to €352 million (Q1-3/2014: €286 million). In Q3/2015, net income² increased by 18% to €126 million (Q3/2014: €107 million).

Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 3% to €3,970 million (Q1-3/2014: €3,861 million). EBIT¹ increased by 17% to €463 million (Q1-3/2014: €395 million). The EBIT margin¹ increased to 11.7% (Q1-3/2014: 10.2%). Sales of the acquired hospitals consolidated for less than one year were €197 million. EBIT¹ was €9 million with a margin of 4.6%.

The integration of the hospitals acquired from Rhön-Klinikum AG remains well on track. Integration costs were €12 million in the first nine months of 2015 (Q3/2015: €4 million) taking the total to date to €63 million. Fresenius Helios does not expect any further integration costs. Amount (€85 million p.a.) and timing (spring 2016) of targeted near-term cost synergies are confirmed.

Fresenius Helios confirms its outlook for 2015, projecting organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT¹ is expected to increase to €630 to €650 million.

Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (€12 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.

• Q3 organic sales growth driven by strong service business
• Q3 order intake €192 million
• 2015 outlook: organic sales growth now projected to reach 5% to 10%, EBIT growth expectation of 5% to 10% confirmed

Sales increased by 12% (11% in constant currency) to €731 million (Q1-3/2014: €655 million). Organic sales growth was 9%. Acquisitions contributed 2%. Sales in the project business increased by 9% to €333 million (Q1-3/2014: €306 million). Sales in the service business grew by 14% to €398 million (Q1-3/2014: €349 million). In Q3/2015, sales increased by 4% to €268 million (Q3/2014: €257 million). Organic sales growth was 4%.

EBIT grew by 11% to €30 million (Q1-3/2014: €27 million). The EBIT margin remained unchanged at 4.1% (Q1-3/2014: 4.1%). In Q3/2015, EBIT increased by 17% to €14 million (Q3/2014: €12 million). Sequentially, the EBIT margin increased by 170 bps to 5.2%.

Net income¹ grew by 11% to €20 million (Q1-3/2014: €18 million). In Q3/2015, net income¹ increased by 25% to €10 million (Q3/2014: €8 million).

Order intake reached a very strong €476 million (Q1-3/2014: €678 million). The prior-year period was boosted by the major project for the modernization of the University Hospital of Schleswig-Holstein/Germany. As of September 30, 2015, order backlog was €1,528 million (Dec. 31, 2014: €1,398 million).

Based on the strong sales development in the first nine months of 2015, Fresenius Vamed narrows its 2015 organic sales growth outlook to a range of 5% to 10%. Previously, Fresenius Vamed expected single-digit organic sales growth. Fresenius Vamed fully confirms its EBIT outlook and projects 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 nine months of 2015, a conference call will be held on October 29, 2015 at 2 p.m. CET (9 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.

VAMED-KMB has won the EFQM Excellence Award in the category “Adding Value for Customer” for its technical operations management of Vienna General Hospital. Awarded by the European Foundation for Quality Management, the prize is considered to be Europe’s most prestigious, with the most exacting standards. VAMED-KMB had already won the EFQM Excellence Award three times in various categories over the previous six years. A subsidiary of VAMED AG, VAMED-KMB has been responsible for the technical operations of of Vienna General Hospital since its construction more than 30 years ago. With more than 2,000 beds, the hospital is one of Europe’s biggest.

Q1/2015:

• 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 items
² 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 items
³ 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 items
² Before special items
³ 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. KGaA
² See Annual Report 2014, page 152 f.

For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.

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 items
² Net income attributable to shareholders of Fresenius Kabi AG; before special items
³ 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.

 

 

 

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN.

Fresenius successfully placed US$300 million of senior unsecured notes with a maturity of 7 years.

The notes have a coupon of 4.50% and were issued at par.

The transaction was very well received by investors and substantially oversubscribed.

Fresenius US Finance II, Inc., a wholly owned subsidiary of Fresenius SE & Co. KGaA, offered the senior notes through a private placement to institutional investors.

Fresenius has applied to the Luxembourg Stock Exchange to admit the senior notes to trading on its regulated market.

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN!

Fresenius intends to issue US$300 million of senior unsecured notes with a maturity of 7 years.

The proceeds of this offering will be used to refinance short-term debt, extending our maturity profile.

Fresenius US Finance II, Inc., a wholly owned subsidiary of Fresenius SE & Co. KGaA, will issue and offer the senior notes through a private placement with institutional investors.

Fresenius has applied to the Luxembourg Stock Exchange to admit the senior notes to trading on its regulated market.

- First quarter performance fully on track to achieve full year guidance
- Strong revenue and earnings growth
- Strong cash flow generation

First quarter 2015 key figures:

Net revenue: $3,960 million, +11%
Operating income (EBIT): $504 million, +13%
Net income*: $210 million, +2%
Basic earnings per share: $0.69, +1%

* attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Rice Powell, chief executive officer of Fresenius Medical Care stated: “Our first quarter 2015 results show a positive start into the year. We are pleased with our revenue and earnings growth. We have made good progress on our Care Coordination business and will make operating cost investments in this area in 2015 for future growth. Our performance is in line with our full year guidance for 2015 and we are on track to achieve our long-term targets”.

First quarter 2015

Revenue

Net revenue for the first quarter of 2015 increased by 11% to $3,960 million (+17% at constant currency) as compared to the first quarter of 2014. Organic revenue growth worldwide was 7%. Net Health Care revenue grew by 14% to $3,182 million (+18% at constant currency). The dialysis product revenue of $778 million remained on a similar level as compared to the first quarter of 2014 solely due to negative currency developments. On a constant currency basis the dialysis product revenue increased by +11%.

North America revenue for the first quarter of 2015 increased by 16% to $2,771 million. Organic revenue growth was 6%. Net Health Care revenue grew by 17% to $2,571 million with a same market treatment growth of 4%. Net Dialysis Care revenue increased by 4% to $2,137 million while the Care Coordination revenue increased by 191% to $434 million (organic growth of 39%). Dialysis product revenue increased by 4% to $200 million as compared to the first quarter of 2014.

International revenue increased by 2% to $1,180 million. On a constant currency basis revenue increased 18%. Organic revenue growth was 10%. Net Health Care revenue increased by 5% to $611 million (+24% at constant currency). Dialysis product revenue decreased by 2% to $569 million (+13% at constant currency).

Earnings

Operating income (EBIT) increased by 13% from $445 million in the first quarter of 2014 to $504 million in the first quarter of 2015. Delivered EBIT (operating income less noncontrolling interests)* increased 12% to $450 million.

Operating income for North America for the first quarter of 2015 was $340 million, an increase of 1% as compared to the first quarter of 2014. Delivered EBIT decreased 3% to $288 million.

In the International segment, operating income for the first quarter of 2015 increased by 35% to $244 million as compared to $180 million in the first quarter of 2014.

Net interest expense for the first quarter of 2015 was $102 million as compared to $96 million in the first quarter of 2014 which mainly reflects the financing costs of the acquisitions made in the second half of 2014.

Income tax expense was $138 million for the first quarter of 2015, which translates into an effective tax rate of 34.3%. This compares to income tax expense of $102 million and a tax rate of 29.1% for the first quarter of 2014. Adjusted for the positive impact of a German tax audit the tax rate would have been 33.6% in the first quarter of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2015 was $210 million, an increase of 2% compared to $205 million for the first quarter of 2014.

Basic earnings per share (EPS) for the first quarter of 2015 was $0.69, an increase of 1% compared to the corresponding number for the first quarter of 2014. The weighted average number of shares outstanding for the first quarter of 2015 was approximately 303.7 million shares, compared to approximately 301.5 million shares for the first quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the first quarter of 2015.

* Approximates the operating income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA.

Cash flow

In the first quarter of 2015, the company generated $447 million in net cash provided by operating activities, representing 11% of revenue, compared to the corresponding figure of last year ($112 million).

A total of $197 million was spent for capital expenditures, net of disposals. Free cash flow was $250 million compared to a negative $85 million in the first quarter of 2014.

A total of $11 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $239 million as compared to a negative $220 million in the first quarter of 2014.

Employees

As of March 31, 2015, Fresenius Medical Care had 101,543 employees (full-time equivalents) worldwide, compared to 91,542 employees at the end of March 2014. This increase of ~10,000 employees was mainly attributable to acquisitions as well as our continued organic growth.

Balance sheet structure

The company´s total assets were $25,107 million (Dec. 31, 2014: $25,447 million), a decrease of 1%. Current assets decreased by 2% to $6,599 million (Dec. 31, 2014: $6,725 million). Non-current assets were $18,508 million (Dec. 31, 2014: $18,722 million), a decrease of 1%. Total equity increased by 1% to $10,139 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,052 million (Dec. 31, 2014: $9,532 million). As of March 31, 2015, the debt/EBITDA ratio was 2.9 (Dec. 31, 2014: 3.1).

Please refer to the attachments for a complete overview on the first quarter of 2015.

Outlook* confirmed

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0-5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

For the 2016 projections we expect revenue to increase 9-12% and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15-20%.

As disclosed in the company’s long-term target for 2020, the company expects revenue to grow at an average annual growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

* The original outlook/projection provided for 2015/2016 is based on exchange rates prevailing at the beginning of 2015. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2015 on Thursday, April 30, 2015 at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.