fiscal year 2016 - fresenius1 net income attr. to shareholders of fme 2016 – revenue breakdown...
TRANSCRIPT
Fiscal Year 2016 Press conference | February 22, 2017
Rice Powell - CEO Mike Brosnan - CFO
Fresenius Medical Care – global footprint in 2016
© | Press Conference | FY 2016 2
Every 0.7 seconds we provide a dialysis treatment
> 3,600
Clinics +6%
> 308,000
Patients +5%
> 109,000
Employees +5%
> 46.5million
Treatments +4%
2015 2016 2015 2016
Revenue in $m
EBIT in $m
Net income1
in $m
+7%
+13% +21%
2016 – Record year
2015 2016
16,738 17,911
Ambitious growth targets achieved
Very good performance in North America
Care Coordination again with significant top-line growth
Proposed dividend increase of 20% for fiscal 2016
2,327 2,638
1,029 1,243
3 © | Press Conference | FY 2016
1 Net income attr. to shareholders of FME
2016 – revenue breakdown North America US$ million
Revenue 12,886 +9%
Organic growth +7%
EMEA US$ million
Revenue 2,667 +1%
Organic growth +2%
Latin America US$ million
Revenue 712 -7%
Organic growth +17%
Asia-Pacific US$ million
Revenue 1,632 +9%
Organic growth +8%
72% North America
15% EMEA
9% Asia-Pacific
4% Latin America
US$m 17,911
+7%
4 © | Press Conference | FY 2016
Dialysis services Dialysis products
Therapies & laboratory services for patients with
chronic kidney failure
Care Coordination
North America - Businesses
supporting dialysis, e.g. vascular services
e.g., dialysis machines, dialyzers &
bloodline systems
Health care services Products
19% 13% 68%
Our solid revenue profile Percentage of FY 2016 revenue (US$)
12.2bn 2.3bn 3.4bn
5 © | Press Conference | FY 2016
FY 2016 US$ million
FY 2015 US$ million
Growth in %
Growth in %cc
Organic growth in %
Total Health Care 14,519 13,392 8 9 8
North America 11,982 10,932 10 10 8
of which CareCoordination 2,307 1,882 23 23 20
EMEA 1,294 1,226 6 9 3
Asia-Pacific 730 667 9 3 4
Latin America 513 567 (9) 15 20
Health Care Services - continued strong growth
cc = constant currency
Increased US organic revenue per treatment by US$ 5 to US$ 351
Growth in same market dialysis treatments by 3.2%
Care Coordination with ongoing significant organic growth
Contributions from acquisitions
1 North America 82%
2 EMEA 9%
3 Asia-Pacific 5%
4 Latin America 4% 1
4 3 2
US$m 14,519
+8%
6 © | Press Conference | FY 2016
Revenue
Stable Dialysis Products development FY 2016
US$ million FY 2015
US$ million Growth
in % Growth
in %cc
Total Dialysis Products 3,392 3,346 1 4
North America 904 881 3 3
EMEA 1,373 1,403 (2) --
Asia-Pacific 902 835 8 12
Latin America 199 199 -- 7
Corporate 14 28 (48) (48)
27%
73% Revenue growth in line with
global patient growth
Strong results in North America and Asia-Pacific segment
cc = constant currency
1 4
3
2
US$m 3,392
+1%
1 North America 27%
2 EMEA 40%
3 Asia-Pacific 27%
4 Latin America 6%
7 © | Press Conference | FY 2016
Products business - new generation of machines
8 © | Press Conference | FY 2016
Innovating for our patients
R&D 2016
Spend 162 US$ million (+16%) 5% of our product revenue 7,748 patents 794 employees, FTE (+22%)
6008 - new dialysis machine
Innovative and userfriendly Technologies for lower ramp up time,
faster cleaning, safer treatments Allow skilled nurses more time with
patients
20th consecutive dividend increase
Continuously delivering returns to shareholders
Dividend proposal in line with net income growth
0.77
2013
0.75
2012
0.80
2015
0.78
2014
0.96*
2016
Dividend per share in EUR
*proposed dividend for approval at the AGM on May 11, 2017
+20%
9 © | Press Conference | FY 2016
Changing health care systems C
omp
lexi
ty
Responsibility
Example: Reimbursement in the U.S. health care system
10 © | Press Conference | FY 2016
Recent M&A activities
Intensified focus on India as a key market in Asia Pacific
Dialysis Service segment backed by well established product business
Q3 2016 Q4 2016 H1 2017 (e) 1
Dialysis Care Coordination
11 © | Press Conference | FY 2016
Access to a unique product portfolio in the field of extracorporeal lung and heart assist
Lung support treatments similar to hemodialysis
Leverage FMEs core competence of operating outpatient facilities
Roll out Care Coordination services outside the US
New products 1 subject to closing, which is expected in H1 2017
Outlook1
Ambitious targets for revenue and net income growth
12 © | Press Conference | FY 2016
Guidance 2017 2016 base (IFRS/€m)
Revenue growth 8 to 10% 16,570
Net income2 growth 7 to 9% 1,144
1 Outlook based on constant currencies | 2 Net income attr. to shareholders of FME
• Continuous growth in our core business
• Enhancing both products and treatments
• Expanding Care Coordination business
• Increasing flexibility and efficiency
13 © | Press Conference | FY 2016
Vision 2020
(2014-2020, avg. % p.a.) 20202
(IFRS/€bn)
Revenue growth ~ 10 24
Net income growth high single digit
Outlook1
1 Outlook based on constant currencies | 2 US-GAAP US$ 28bn target translated to IFRS/€ with fx rates as of the beginning of 2017
Summary
14 © | Press Conference | FY 2016
We continuously improve the quality of life for our patients
We delivered on our targets of strong revenue and profit growth We delivered on our Global Efficiency Program savings
Progress in our Care Coordination business continues, we are
positioned as a provider of choice for value-based care in the US
© | Press Conference | FY 2016 15
Safe harbor statement: This presentation includes certain forward-looking statements within the
meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Act of 1934, as amended. The Company has based these forward-looking statements on current
estimates and assumptions made to the best of our knowledge. Actual results could differ materially from
those included in the forward-looking statements due to various risk factors and uncertainties, including
changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing. Given
these uncertainties, readers should not put undue reliance on any forward-looking statements. These and
other risks and uncertainties are discussed in detail in Fresenius Medical Care AG & Co. KGaA’s (FMC AG &
Co. KGaA) Annual Report on Form 20-F under the heading “Forward-Looking Statements” and under the
headings in that report referred to therein, and in FMC AG & Co. KGaA’s other reports filed with the
Securities and Exchange Commission (SEC) and the German Exchange Commission (Deutsche Börse).
Forward-looking statements represent estimates and assumptions only as of the date that they were made.
The information contained in this presentation is subject to change without notice and the company does
not undertake any duty to update the forward-looking statements, and the estimates and assumptions
associated with them, except to the extent required by applicable law and regulations.
If not mentioned differently the term net income after minorities refers to the net income attributable to
the shareholders of Fresenius Medical Care AG Co. KGaA. The term EMEA refers to the region Europe,
Middle East and Africa. Amounts are in US-$ if not mentioned otherwise.
Fiscal Year 2016 Press conference | February 22, 2017
Rice Powell - CEO Mike Brosnan - CFO