Full year Press Conference February 27, Rice Powell - CEO

Transcription

1 Full year 2017 Press Conference February 27, 2018 Rice Powell - CEO Press Conference FY

2 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 Euro if not mentioned otherwise. Press Conference FY

3 Growth trend continued in % Clinics: 3,752 +4% Patients: 320,960 +4% Treatments: 48,269,144 Growth targets achieved 21 st consecutive dividend increase proposed Press Conference FY

4 Patients first: Live-saving action in hurricane zones Natural disasters pose immense challenges for dialysis patients and staff 2017: unusually high number of natural disaster with three hurricanes and an earthquake in North America Distribution of emergency packets, extra shifts in clinics, transport via duck boats Transfer of 89 patients from Puerto Rico who were evacuated to an FMC clinic in Miami Press Conference FY

5 All business areas fueled our growth in 2017 Dialysis Services +5%cc 65% 17.8bn Revenue +9%cc 18% 17% Health Care Products +7%cc Care Coordination +36%cc cc = constant currency Press Conference FY

6 Profitable growth continued Revenue Net income in bn in m , ,144 +7% +12% Growth of 9% at constant currency Organic growth of 7% Growth of 14% at constant currency Adjusted 1 net income growth of 7% at constant currency 1 Net income attr. to shareholders of FME, excl. VA Agreement, Natural Disaster Costs & FCPA related charge and excl. gain from remeasurement of deferred tax balances resulting from the U.S. tax reform Press Conference FY

7 Delivering across all regions North America +9% EMEA +6% Latin America +15% #1 dialysis provider Asia-Pacific +13% Health Care Services revenue in EUR bn Health Care Products revenue in EUR bn at constant currency, different scales applied Press Conference FY

8 Health Care Services solid growth North American Care Coordination business continues to show strong growth EMEA driven by patient growth 14.5bn +10%cc 1 Growth in Asia-Pacific supported by acquisitions Dialysis treatments increased by 4% 1 North America 83% 2 EMEA 8% 3 Asia-Pacific 5% 4 Latin America 4% cc = constant currency Press Conference FY

9 Products show strong demand 1 Higher sales of dialyzers, machines, and peritoneal dialysis products Strong revenue growth in Latin America and Asia-Pacific bn +7%cc 2 Non-dialysis product revenue increased by 59% to 79 million due to the acquisition of Xenios 1 EMEA 40% 2 Asia-Pacific 27% 3 North America 26% 4 Latin America 7% cc = constant currency Press Conference FY

10 NxStage: New opportunities in home care segment Opportunity: Increasing demand for home treatment 82% of patients and families fully educated on their treatment options would select a home modality 1 Advantages of home dialysis: Higher patient satisfaction More engaged patients FME home dialysis patients in the U.S. (in % of FME patients in the U.S.) 15%+ Flexibility to tailor the therapy around the patient s lifestyle 6.6% 9.9% 10.2% Nx2Me Connected Health Positive clinical results Reduced cost of care E 1 Devoe et al., American Journal of Kidney Disease, 2016 Press Conference FY

11 Further optimizing Care Coordination portfolio Acquisition of Cura Day Hospitals in April 2017 Opportunity to leverage core competence of operating outpatient facilities Scaling up clinic network in the Australian market Divestiture of Shiel in December 2017, a provider of non-dialysis laboratory services Care Coordination portfolio comprises activities with different maturity levels and different strategic implications Regular reevaluation of strategic opportunities Press Conference FY

12 Global Efficiency Program Phase II GEP II sustained savings ~60% EUR m 20% Procurement 5% Supply Chain Management 25% Shared Services ~30% 40% Operational Excellence ~10% % Sustained savings Capital Efficiency Press Conference FY

13 Excellent share price performance continued Share price & Index performance indexed in % New all-time high FME +9% Euro Stoxx Health Care +2% 80 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Share price increase of 9%, outperforming the industry benchmark index New all-time-high reached on June 14, 2017 Press Conference FY

14 21 st consecutive dividend increase Dividend per share in EUR +10% Continuously delivering returns to shareholders Dividend proposal in line with net income growth 1 proposed dividend for approval at the AGM on May 17, 2018 Press Conference FY

15 Outlook 1 Targets base (in million) Revenue growth 2 ~8% 17,298 Net income growth 3 13 to 15% 1,280 Targets 2020 ( , avg. % p.a.) (in billion) Revenue growth ~10% 24 Net income growth 5 high single digit 1 Outlook based on constant currencies & excl. effects from NxStage acquisition 2 Revenue 2017 adjusted for effect from IFRS 15 implementation of 486m 3 Targets 2018 including recurring benefits from U.S. tax reform of m 4 US-GAAP US$ 28bn target translated to IFRS/ at currency rates prevailing at the beginning of Excl. Press recurring Conference impacts from U.S. FY 2017 tax reform 15

16 Conclusion Patients come first! We improve the quality of life of our patients and take action to help our patients. We achieved a record year and are again targeting strong net income growth for 2018 We are further optimizing our portfolio and are positioning ourselves as a provider of choice for value-based care We kicked off the 2 nd phase of our Global Efficiency Program We proposed the 21 st consecutive dividend increase Press Conference FY

17 Your questions are welcome Press Conference February 27, 2018 Rice Powell - CEO Press Conference FY