Fresenius posts strong second quarter and confirms Group guidance – Continued net income growth – EBIT outlook raised for Fresenius Kabi

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If no timeframe is specified, information refers to H1/2018

Q2/2018:

• Sales: €8.4 billion (-2%, +5% in constant currency¹)
• EBIT²: €1,145 million (-3%, +2% in constant currency)
• EBIT² (excl. biosimilars business): €1,182 million (0%, +5% in constant currency)
• Net income^2,3: €472 million (+3%, +7% in constant currency)
• Net income^2,3 (excl. biosimilars business): €499 million (+9%, +12% in constant currency)

H1/2018:

• Sales: €16.5 billion (-2%, +6% in constant currency¹)
• EBIT²: €2,199 million (-8%, -2% in constant currency)
• EBIT²: (excl. biosimilars business) €2,271 million (-5%, +1% in constant currency)
• Net income^2,3: €922 million (+1%, +7% in constant currency)
• Net income^2,3 (excl. biosimilars business): €975 million (+6%, +12% in constant currency)

^{1 Growth rate adjusted for IFRS 15 adoption (Q2/17 base: €8,401 million; H1/2017 base: €16,624 million)2 Before special items (i.e., expenses related to the Akorn transaction, gains related to divestitures of Care Coordination activities)3 Net income attributable to shareholders of Fresenius SE & Co. KGaA}For a detailed overview of special items please see the reconciliation tables on pages 19 - 20 in the PDF document.

Stephan Sturm, CEO of Fresenius, said: “The first half of 2018 was a very good one for Fresenius. After our successful start, we have delivered a strong second quarter with continued healthy growth in sales and earnings. All four business segments contributed to this, and all four business segments display outstanding prospects for the future. For Fresenius Kabi, we are even a bit more optimistic than before. We are therefore fully on track to achieve our ambitious growth targets as we steer toward another excellent year for Fresenius.”

Group guidance¹ for 2018 confirmed

Fresenius confirms its guidance for 2018. Group sales are expected to increase by 5% to 8%² in constant currency. Net income^3,4 is expected to grow by 6% to 9% in constant currency. Excluding expenditures for the further development of the biosimilars business, net income^3,5 is expected to grow by ~10% to 13% in constant currency.

Fresenius expects to further reduce its net debt/EBITDA ratio⁶ by year-end 2018.

6% sales growth in constant currency⁷

Group sales decreased by 1%⁷ (increased by 6%⁷ in constant currency) to €16,503 million (H1/2017: €16,894 million). Organic sales growth was 4%. Acquisitions/divestitures contributed net 2% to growth. Negative currency translation effects (7%) were mainly driven by the devaluation of the U.S. dollar and the Chinese yuan against the euro. In Q2/2018, Group sales were nearly unchanged⁷ (increased 5%⁷ in constant currency) at €8,382 million (Q2/2017: €8,532 million). Organic sales growth was 4%. Acquisitions/divestitures contributed net 1% to growth.

^{1 Excluding expenses related to the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities 2 2017 base adjusted for IFRS 15 adoption (deduction of €486 million at Fresenius Medical Care) and divestitures of Care Coordination activities (deduction of €558 million at Fresenius Medical Care) 3 Net income attributable to shareholders of Fresenius SE & Co. KGaA4 2017 base: €1,804 million; 2018 before special items; including expenditures for further development of biosimilars business (€43 million after tax in FY/17 and ~€120 million after tax in FY/18)5 2017 base: €1,847 million; 2018 before special items6 Calculated at expected annual average exchange rates for both net debt and EBITDA; excluding effects of the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities; excluding further potential acquisitions; at current IFRS rules7 Growth rates adjusted for IFRS 15 adoption (H1/17 base: €16,624 million; Q2/17 base: €8,401 million)}

Group sales by region:

7% net income^1,2 growth in constant currency

Group EBITDA² decreased by 6% (0% in constant currency) to €2,912 million (H1/2017: €3,098 million). Group EBIT² decreased by 8% (-2% in constant currency) to €2,199 million (H1/2017: €2,393 million). The prior-year period saw the compensation for treatments of U.S. war veterans (“VA agreement”) contributing €91 million as a one-time effect. Excluding the VA agreement, EBIT² increased by 2% in constant currency in H1/2018. The EBIT margin² was 13.3% (13.1% before IFRS 15; H1/17: 14.2%). Group EBIT² before expenses for the further development of the biosimilars business decreased by 5% (increased 1% in constant currency) to €2,271 million. Group EBIT² excluding the VA agreement and expenses for the biosimilars business increased by 5% in constant currency.

In Q2/2018, Group EBIT² decreased by 3% (increased 2% in constant currency) to €1,145 million (Q2/2017: €1,177 million), with an EBIT margin² of 13.7% (13.4% before IFRS 15; Q2/2017: 13.8%). Group EBIT² excluding expenses for the biosimilars business increased by 5% in constant currency.

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA2 Before special items}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Group net interest² was -€297 million (H1/2017: -€326 million). The decrease is mainly driven by currency effects and reduced interest following refinancing activities.

The decrease of the Group tax rate before special items to 22.3% (H1/2017: 28.5%) was mainly due to the U.S. tax reform. In Q2/2018, the Group tax rate² was 23.4% (Q2/2017: 27.9%).

Noncontrolling interest² was €556 million (H1/2017: €562 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income^1,2 increased by 1% (7% in constant currency) to €922 million (H1/2017: €916 million). Earnings per share^1,2 increased by 1% (7% in constant currency) to €1.66 (H1/2017: €1.65). In Q2/2018, Group net income^1,2 increased by 3% (7% in constant currency) to €472 million (Q2/2017: €459 million). Earnings per share^1,2 increased by 3% (7% in constant currency) to €0.85 (Q2/2017: €0.82).

Group net income^1,2 before expenses for the further development of the biosimilars business increased by 6% (12% in constant currency) to €975 million (H1/2017: €916 million). Earnings per share^1,2 before expenses for the further development of the biosimilars business increased by 6% (12% in constant currency) to €1.76 (H1/2017: €1.65). In Q2/2018, Group net income^1,2 before expenses for the further development of the biosimilars business increased by 9% (12% in constant currency) to €499 million (Q2/2017: €459 million). Earnings per share^1,2 before expenses for the further development of the biosimilars business increased by 9% (12% in constant currency) to €0.90 (Q2/2017: €0.82).

Group net income¹ after special items increased by 20% (29% in constant currency) to €1,092 million (H1/2017: €907 million), mainly due to gains related to divestitures in Care Cordination activities at Fresenius Medical Care. Earnings per share¹ after special items increased by 20% (29% in constant currency) to €1.97 (H1/2017: €1.64). In Q2/2018, Group net income¹ after special items increased by 45% (54% in constant currency) to €652 million (Q2/2017: €450 million). Earnings per share¹ after special items increased by 45% (54% in constant currency) to €1.18 (Q2/2017: €0.81).

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA2 Before special items}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Continued investment in growth

Spending on property, plant and equipment was €831 million (H1/2017: €709 million), primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. This corresponds to 5.0% of sales.

Total acquisition spending was €386 million (H1/2017: €6,421 million). The prior-year period included the acquisition of Quirónsalud.

Cash flow development

Operating cash flow decreased by 25% to €1,256 million (H1/2017: €1,683 million) with a margin of 7.6% (H1/2017: 10.0%). The decrease is mainly due to two effects at Fresenius Medical Care in North America: Receipt of a ~€200 million payment under the VA agreement in the prior-year period as well as increased accounts receivable related to the addition of calcimimetics into the Medicare ESRD payment bundle. Moreover negative currency translation effects weighed on the cash flow development in H1/2018. Operating cash flow in Q2/2018 decreased by 15% to €1,020 million (Q2/2017: €1,207 million), with a margin of 12.2% (Q2/2017: 14.1%). Negative currency translation effects weighed on the cash flow development in Q2/2018.

Given the effects described above and growing investments, free cash flow before acquisitions and dividends decreased to €425 million (H1/2017: €998 million). Free cash flow after acquisitions and dividends was €942 million (H1/2017: -€5,645 million).

Solid balance sheet structure

The Group’s total assets increased by 3% (3% in constant currency) to €54,982 million (Dec. 31, 2017: €53,133 million). Current assets grew by 13% (13% in constant currency) to €14,287 million (Dec. 31, 2017: €12,604 million). Non-current assets were nearly unchanged (decreased by 1% in constant currency) at €40,695 million (Dec. 31, 2017: € 40,529 million).

Total shareholders’ equity increased by 7% (6% in constant currency) to €23,269 million (Dec. 31, 2017: €21,720 million). The equity ratio increased to 42.3% (Dec. 31, 2017: 40.9%).

Group debt was nearly unchanged (decreased by 1% in constant currency) at €18,989 million (Dec. 31, 2017: € 19,042 million). Group net debt decreased by 4% (-5% in constant currency) to € 16,722 million (Dec. 31, 2017: € 17,406 million) mainly due to the proceeds from divestitures of Care Coordination activities.

As of June 30, 2018, the net debt/EBITDA ratio was 2.80^1,2 (December 31, 2017: 2.84^1,2). Excluding the proceeds from divestitures of Care Coordination activities the net debt/EBITDA ratio was 3.02^1,2.

^{1 At LTM average exchange rates for both net debt and EBITDA; pro forma closed acquisitions/divestitures, excluding Akorn and NxStage transactions2 Before special items}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Increased number of employees

As of June 30, 2018, the number of employees was 273,632 (Dec. 31, 2017: 273,249).


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 June 30, 2018, Fresenius Medical Care was treating 325,188 patients in 3,815 dialysis clinics. Along with its core business, the company provides related medical services in the field of Care Coordination.

• Q2/2018 reported results significantly positively influenced by divestitures of Care Coordination activities
• 5% adjusted^1,2 sales growth in constant currency in Q2
• 6% adjusted^4,6 net income growth in constant currency in Q2
• 22% net income growth in constant currency on a comparable basis^4,7 in Q2

Reported sales were strongly impacted by headwinds from foreign exchange rates and by the already anticipated decline in Fresenius Medical Care North America’s pharmacy business. Sales decreased by 9% (increased by 3%¹ in constant currency) to €8,189 million (H1/2017: €9,019 million). Organic sales growth was 3%. Currency translation effects reduced sales by 9%. Adoption of IFRS 15 reduced sales by 3%. Excluding the VA agreement in the prior-year quarter, sales growth¹ was 4% in constant currency.

^{1 Growth rate adjusted for IFRS 15 implementation (Q2/17 base: €4,340 million; H1/17 base: €8,749 million)2 Excluding VA agreement: Q2/2018: 5%; H1/2018: 4%3 Adjusted for gains from divestitures of Care Coordination activities: Q2/2018: 4%;}H1/2018: -5%^{4 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA5 Adjusted for gains from divestitures of Care Coordination activities and the effect of the U.S. Tax Reform: Q2/2018: 8%; H1/2018: -3%6 Consistent with guidance, i.e. excluding gains from divestitures of Care Coordination activities, excluding the effect of the U.S. Tax Reform and excluding VA agreement7 Consistent with guidance, i.e. excluding gains from divestitures of Care Coordination activities, including the effect of the U.S. Tax Reform and including VA agreement}

In Q2/2018, sales decreased by 6% (increased 5%¹ in constant currency) to €4,214 million (Q2/2017: €4,471 million). Organic sales growth was 4%. Currency translation effects reduced sales by 8%. Adoption of IFRS 15 reduced sales by 3%.

Health Care services sales (dialysis services and care coordination) decreased by 8%¹ (increased by 3%¹ in constant currency) to €6,594 million (H1/2017: €7,418 million). With €1,595 million (H1/2017: €1,601 million), Health Care product sales were on prior-year’s level (increased by 6% in constant currency).

In North America, sales decreased by 9%¹ (increased by 1%¹ in constant currency) to €5,746 million (H1/2017: €6,600 million). Health Care services sales decreased by 9%¹ (increased by 1%¹ in constant currency) to €5,351 million (H1/2017: €6,182 million). Excluding the 2017 effect from the VA Agreement (€98 million), Health Care services sales increased by 3%¹ in constant currency. Health Care product sales decreased by 5% (increased by 6% in constant currency) to €395 million (H1/2017: €418 million).

Sales outside North America increased by 1% (8% in constant currency) to €2,436 million (H1/2017: €2,410 million). Health Care services sales increased by 1% (10% in constant currency) to €1,243 million (H1/2017: €1,236 million). Health Care product sales increased by 2% (7% in constant currency) to €1,193 million (H1/2017: €1,174 million).

Fresenius Medical Care’s EBIT increased by 54% (68% in constant currency) to €1,898 million (H1/2017: €1,235 million), driven by the divestitures of Care Coordination activities in Q2/18. The EBIT margin increased to 23.2% (H1/2017: 13.7%). Adjusted for the implementation of IFRS 15 and excluding the gains from divestitures of Care Coordination activities and the VA agreement in the prior-year period, EBIT increased by 3% in constant currency and EBIT margin was 13.2% (H1/2017: 13.2%). In Q2/2018, EBIT increased by 140% (increased by 162% in constant currency) to €1,401 million (Q2/2017: €583 million). The EBIT margin increased to 33.3% (Q2/2017: 13.0%). Adjusted for the adoption of IFRS 15 and excluding the gains from divestitures of Care Coordination activities, EBIT increased by 4% in constant currency and EBIT margin increased to 13.5%.  

^{1 Growth rate adjusted for IFRS 15 implementation (Q2/17: -€131 million; H1/17: -€270 million)}

Net income¹ increased by 121% (141% in constant currency) to €1,273 million (H1/2017: €577 million). Consistent with full-year guidance, i.e. excluding the gains from divestitures of Care Coordination activities, the effect of the U.S. Tax Reform and the VA agreement in the prior-year period, net income growth¹ was 7% in constant currency. Net income¹ growth on a comparable basis, i.e. excluding the gains from divestitures of Care Coordination activities, but including the effect of the U.S. Tax Reform and the VA agreement in the prior-year period, was 13% in constant currency.

In Q2/2018, net income¹ grew by 270% (303% in constant currency) to €994 million (Q2/2017: €269 million). Consistent with full-year guidance, i.e. excluding the gains from divestitures of Care Coordination activities, the effect of the U.S. Tax Reform and the VA agreement in the prior-year period, net income growth¹ was 6% in constant currency. Net income¹ growth on comparable basis, i.e. excluding the gains from divestitures of Care Coordination activities, but including the effect of the U.S. Tax Reform and the VA agreement in the prior-year period was 22% in constant currency.

Operating cash flow was €611 million (H1/2017: €1,052 million). The cash flow margin was 7.5% (H1/2017: 11.7%). The decrease is mainly due to two effects in North America: Receipt of a ~€200 million payment under the VA agreement in the prior-year period as well as increased accounts receivable related to the addition of calcimimetics into the Medicare ESRD payment bundle. In Q2/2018, operating cash flow was €656 million (Q2/2017: €882 million) with a cash flow margin of 15.6% (Q2/2017: 19.7%).

Fresenius Medical Care confirms its outlook for 2018 and expects sales growth of 5 to 7%² in constant currency and net income¹ comparable growth of 13% to 15%³ in constant currency (7% to 9%⁴ adjusted net income growth).

The 2018 growth targets are based on 2017 figures and exclude effects from the planned acquisition of NxStage Medical and gains from divestitures of Care Coordination activities.

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

¹ Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
² 2017 base: €16,739 million (adjusted for IFRS 15 adoption (-€486 million) and excluding Sound´s revenue for H2/2017 (-€558 million))
³ 2017 base: €1,242 million, excluding Sound´s H2/17 net income (-€38 million); 2018 including benefits from U.S. tax reform but excluding gains from divestitures of Care Coordination activities
⁴ Excluding gains from divestitures of Care Coordination activities, excluding the effect of the U.S. Tax Reform natural disaster, FCPA related charge and excluding VA agreement
 

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. In the biosimilars business, we are developing products with a focus on oncology and autoimmune diseases.

• 6% organic sales growth and 11% EBIT¹ growth in constant currency (excluding biosimilars business) in Q2
• European Commission confirms marketing authorizations of HES subject to the implementation of risk minimization measures
• Sales outlook confirmed: 4% to 7% organic sales growth expected
• EBIT outlook raised: -2% to +1%⁵ EBIT growth in constant currency expected (~6% to 9%⁶ excl. biosimilars expenses)

Sales of €3,207 million (H1/2017: €3,202 million) were on prior-year level (increased by 7% in constant currency). Organic sales growth was 7%. Strong negative currency translation effects (-7%) were mainly related to the devaluation of the U.S. dollar, the Brazilian real and the Chinese yuan against the euro. In Q2/2018, sales of €1,604 million were nearly unchanged (increased by 6% in constant currency) from the prior-year level (Q2/2017: €1,598 million). Organic sales growth was 6%.

Sales in Europe grew by 2% (organic growth: 3%) to €1,120 million (H1/2017: €1,097 million). In Q2/2018, sales increased by 2% (organic growth: 3%) to €563 million (Q2/2017: €553 million).

Sales in North America decreased by 4% (organic growth: 7%) to €1,140 million (H1/2017: €1,187 million). In Q2/2018, sales decreased by 3% (organic growth: 4%) to €549 million (Q2/2017: €568 million).

^{1 Before special items2 Before expenses for the further development of the biosimilars business: Q2/2018: 11%; H1/2018: 10%3 Net income attributable to shareholders of Fresenius SE & Co. KGaA4 Before expenses for the further development of the biosimilars business: Q2/2018: 19%; H1/2018: 17%5 2017 base: €1,177 million; 2017 & 2018 before special items, including expenditures for the further development of the biosimilars business (€60 million in FY/17, and expected expenditures of ~€160 million in FY/18)6 2017 base: €1,237 million; 2017 & 2018 before special items}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Sales in Asia-Pacific increased by 8% (organic growth: 13%) to €627 million (H1/2017: €582 million). In Q2/2018, sales increased by 8% (organic growth: 11%) to €326 million (Q2/2017: €302 million). Sales in Latin America/Africa decreased by 5% (organic growth: 10%) to €320 million (H1/2017: €336 million). In Q2/2018, sales decreased by 5% (organic growth: 10%) to €166 million (Q2/2017: €175 million).

EBIT¹ decreased by 10% (-1% in constant currency) to €557 million (H1/2017: €622 million) with an EBIT margin¹ of 17.4% (H1/2017: 19.4%). In Q2/2018, EBIT¹ decreased by 6% (-1% in constant currency) to €289 million (Q2/2017: €309 million) with an EBIT margin¹ of 18.0% (Q2/2017: 19.3%).

EBIT¹ before expenses for the further development of the biosimilars business increased by 1% (10% in constant currency) to €629 million (H1/2017: €622 million) with an EBIT margin¹ of 19.6% (H1/2017: 19.4%). In Q2/2018, EBIT¹ before expenses for the further development of the biosimilars business increased by 6% (11% in constant currency) to €326 million (Q2/2017: €309 million) with an EBIT margin¹ of 20.3% (Q2/2017: 19.3%).

Net income^1,2 decreased by 6% (increased by 4% in constant currency) to €355 million (H1/2017: €379 million). In Q2/2018, net income^1,2 decreased by 2% (increased by 5% in constant currency) to €185 million (Q2/2017: €188 million).

Operating cash flow increased by 15% to €454 million (H1/2017: €395 million). The cash flow margin grew to 14.2% (H1/2017: 12.3%). In Q2/2018, operating cash flow increased by 12% to €228 million (Q2/2017: €203 million) with a cash flow margin of 14.2% (Q2/2017: 12.7%).

^{1 Before special items2 Net income attributable to shareholders of Fresenius SE & Co. KGaA}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Based on the strong development of Fresenius Kabi in H1/2018 and the reversal of some HES¹ associated risk adjustments, Fresenius Kabi raises its EBIT outlook for 2018 by 4%-points and now expects EBIT growth in constant currency of -2% to +1%² (previously: -6% to -3%² in constant currency). Excluding expenditures for the further development of the biosimilars business, EBIT is now expected to grow by ~6% to 9%³ in constant currency (previously: ~2% to 5%³ in constant currency). Fresenius Kabi confirms its sales guidance of 4% to 7% organic growth.

^{1 Hydroxyethyl starch (HES)2 2017 base: €1,177 million; 2017 & 2018 before special items, including expenditures for the further development of the biosimilars business (€60 million in FY/17 and expected expenditures of ~€160 million in FY/18)3 2017 base: €1,237 million; 2017 & 2018 before special items}For a detailed overview of special items please see the reconciliation tables on pages 19-20 in the PDF document.

Fresenius Helios

Fresenius Helios is Europe's leading private hospital operator. The company comprises Helios Germany and Helios Spain (Quirónsalud). Helios Germany operates 87 acute care hospitals, 89 outpatient centers and treats approximately 5.2 million patients annually. Quirónsalud operates 45 hospitals, 56 outpatient centers and around 300 occupational risk prevention centers, and treats approximately 11.6 million patients annually.

• 4% organic sales growth in Q2
• DRG catalogue effects and preparatory structural activities for anticipated regulatory measures weigh on financial performance of Helios Germany
• Helios Spain with accelerated growth: 8% organic sales growth and 19% EBIT growth in Q2
• 2018 outlook confirmed

Fresenius Helios increased sales by 10% to €4,674 million (H1/2017: €4,256 million). Organic sales growth was 4%. In Q2/2018, sales increased by 5% (organic growth: 4%) to €2,343 million (Q2/2017: €2,238 million).

Sales of Helios Germany increased by 3% (organic growth: 3%) to €3,121 million (H1/2017: €3,038 million). In Q2/2018, sales increased by 2% (organic growth: 3%) to €1,547 million (Q2/2017: €1,510 million). Helios Spain increased sales by 28% (organic growth: 5%) to €1,553 million (H1/2017: €1,218 million), mainly due to the additional month of consolidation compared to the prior-year period (Quirónsalud is consolidated since February 1, 2017). In Q2/2018 Helios Spain increased sales by 9% (organic growth: 8%) to €796 million (Q2/2017: €728 million).

Fresenius Helios grew EBIT by 6% to €571 million (H1/2017: €537 million) with a margin of 12.2% (H1/2017: 12.6%). In Q2/2018, EBIT increased by 4% to €293 million (Q2/2017: €282 million) with a margin of 12.5% (Q2/2017: 12.6%).

EBIT of Helios Germany decreased by 4% to €345 million (H1/2017: €359 million) with a margin of 11.1% (H1/2017: 11.8%). The decline is mainly due to additional catalogue effects, preparatory structural activities for anticipated regulatory requirements (i.e. clustering) as well as a lack of privatization opportunities in the German market. In Q2/2018, EBIT decreased by 6% to €168 million (Q2/2017: €178 million) with a margin of 10.9% (Q2/2017: 11.8%).

EBIT of Helios Spain increased by 28% to €227 million (H1/2017: €178 million), mainly due to the additional month of consolidation compared to the prior-year period, with a margin of 14.6% (H1/2017: 14.6%). In Q2/2018, EBIT increased by 19% to €124 million (Q2/2017: €104 million) with a margin of 15.6% (Q2/2017: 14.3%).

Net income¹ of Fresenius Helios increased by 4% to €388 million (H1/2017: €373 million). In Q2/2018, net income¹ increased by 3% to €197 million (Q2/2017: €192 million).
Operating cash flow was €259 million (H1/2017: €304 million) with a margin of 5.5% (H1/2017: 7.1%).

The already announced transfer of the in-patient post-acute care business from Fresenius Helios to Fresenius Vamed has become effective as of July 1, 2018. As a consequence, Fresenius Helios’ EBIT growth outlook for 2018 was adjusted to 5% to 8% (previously: 7% to 10%).

Fresenius Helios confirms its outlook for 2018 and expects organic sales growth of 3% to 6% and EBIT growth of 5% to 8%.

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA
 

Fresenius Vamed

Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide and is a post-acute care provider in Central Europe. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.

• Service business with continued good momentum: 11% sales growth in Q2
• Project business with good order intake of €195 million in Q2
• Transfer of inpatient post-acute care business from Helios Germany to Vamed as of July 1, 2018
• 2018 outlook confirmed

Sales increased by 7% (7% in constant currency) to €515 million (H1/2017: €481 million). Organic sales growth was 5%. Sales in the project business increased by 4% to €191 million (H1/2017: €184 million). Sales in the service business grew by 9% to €324 million (H1/2017: €297 million). In Q2/2018, sales increased by 3% (organic growth: 1%) to €266 million (Q2/2017: €258 million).

EBIT increased by 6% to €18 million (H1/2017: €17 million) with a margin of 3.5% (H1/2017: 3.5%). In Q2/2018, EBIT increased by 9% to €12 million (Q2/2017: €11 million) with a margin of 4.5% (Q2/2017: 4.3%).

Net income¹ of €11 million was unchanged from prior-year’s level. In Q2/2018, net income¹ was also unchanged at €7 million.

Order intake increased by 10% to €455 million (H1/2017: €412 million). As of June 30, 2018, order backlog was €2,372 million (December 31, 2017: €2,147 million).

The already announced transfer of the in-patient post-acute care business from Fresenius Helios to Fresenius Vamed has become effective as of July 1, 2018. As a consequence, Fresenius Vamed’s EBIT growth outlook for 2018 was adjusted to 32% to 37% (previously: 5% to 10%).

Fresenius Vamed confirms its outlook for 2018 and expects organic sales growth in the range of 5% to 10% and EBIT growth of 32% to 37%.

^{1 Net income attributable to shareholders of VAMED AG}

Conference Call

As part of the publication of the results for the second quarter / first half of 2018, a conference call will be held on July 31, 2018 at 2 p.m. CET (8 a.m. EST). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com/media-calendar. Following the call, a replay will be available on our website.

For additional information on the performance indicators used please refer to our website https://www.fresenius.com/alternative-performance-measures.