If no timeframe is specified, information refers to H1/2017

Q2/2017:

• Sales: €8.5 billion (+18%, +17% in constant currency)
• EBIT¹: €1,177 million (+14%, +13% in constant currency)
• Net income^1,2: €459 million (+21%, +21% in constant currency)

H1/2017:

• Sales €16.9 billion (+19%, +17% in constant currency)
• EBIT¹: €2,393 million (+20%, +19% in constant currency)
• Net income^1,2: €916 million (+24%, +23% in constant currency)

Stephan Sturm, CEO of Fresenius, said: “We were able to sustain our strong momentum also in the second quarter. Strong increases in sales and earnings have put us well on track to reach our full-year targets. We are very pleased with the business development of Quirónsalud while its integration into Fresenius is proceeding according to plan. A focus in the second half will be to close the acquisitions announced by Fresenius Kabi. Those will put our business on an even broader foundation for future growth.”

 

^{1 Before special items2 Net income attributable to shareholders of Fresenius SE & Co. KGaA}

 

2017 Group guidance confirmed

Fresenius confirms its guidance for 2017. Group sales are expected to increase by 15% to 17% in constant currency. Group net income^1,2,3 is expected to grow by 19% to 21% in constant currency.

Pro forma the acquisitions of Akorn and Merck KGaA’s biosimilars business, the net debt/EBITDA⁴ ratio is expected to be approximately 3.3 at the end of 2017.

 

17% sales growth in constant currency

Group sales increased by 19% (17% in constant currency) to €16,894 million (H1/2016: €14,218 million). Organic sales growth was 6%⁵. Positive currency translation effects (2%) were mainly related to the appreciation of the U.S. dollar against the Euro. Acquisitions and the agreement with the United States Departments of Veterans Affairs and Justice at Fresenius Medical Care (“VA agreement”) contributed 11%. In Q2/2017, Group sales increased by 18% (17% in constant currency) to €8,532 million (Q2/2016: €7,203 million). Organic sales growth was 5%. Acquisitions contributed 12% while divestitures had no meaningful impact on sales.

 

^{1 Before transaction costs of ~€50 million for the acquisitions of Akorn, Inc. and Merck KGaA’s biosimilars business2 Before expected expenditures for the further development of Merck KGaA’s biosimilars business of ~€50 million (expected closing Q3/17)3 Net income attributable to shareholders of Fresenius SE & Co. KGaA4 Calculated at expected FY average exchange rates for both net debt and EBITDA; before transaction costs of ~€50 million; excluding further potential acquisitions5 Excluding effects of VA agreement}For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Group sales by region:

 

23% net income² growth in constant currency

Group EBITDA³ increased by 20% (18% in constant currency) to €3,098 million (H1/2016: €2,586 million). Group EBIT³ increased by 20% (19% in constant currency) to €2,393 million (H1/2016: €1,987 million). The EBIT margin³ increased to 14.2% (H1/2016: 14.0%). In Q2/2017, Group EBIT³ increased by 14% (13% in constant currency) to €1,177 million (Q2/2016: €1,028 million), with an EBIT margin³ of 13.8% (Q2/2016: 14.3%).

Group net interest reached -€326 million³ (H1/2016: -€291 million), mainly due to the financing of the Quirónsalud acquisition.

The Group tax rate increased to 28.5%³ (H1/2016: 28.3%), mainly driven by the higher proportion of U.S. pre-tax income, primarily due to the VA agreement. In Q2/2017, the Group tax rate was 27.9%3 (Q2/2016: 28.2%).

¹ Including effects of VA agreement^{2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items3 Before special items}For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

 

Noncontrolling interest increased to €562 million (H1/2016: €480 million), of which 96% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income¹ increased by 24% (23% in constant currency) to €916 million (H1/2016: €736 million). The VA agreement increased net income¹ growth by 2%-points. Earnings per share¹ increased by 22% (21% in constant currency) to €1.65 (H1/2016: €1.35). In Q2/2017, Group net income¹ increased by 21% (21% in constant currency) to €459 million (Q2/2016: €378 million). Earnings per share¹ increased by 19% (19% in constant currency) to €0.82 (Q2/2016: €0.70).

 

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items}For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

 

Continued investment in growth

Spending on property, plant and equipment was €709 million (H1/2016: €674 million), primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Total acquisition spending of €6,421 million (H1/2016: €505 million) was mainly related to the acquisition of Quirónsalud.

 

Strong operating cash flow

Operating cash flow increased by 26% to €1,683 million (H1/2016: €1,333 million), mainly driven by the excellent development at Fresenius Medical Care and Fresenius Kabi. The cash flow margin increased to 10.0% (H1/2016: 9.4%). Operating cash flow in Q2/2017 increased by 21% to €1,207 million (Q2/2016: €997 million), with a margin of 14.1% (Q2/2016: 13.8%). As expected, the operating cash flow of Fresenius Medical Care improved considerably in Q2/2017.

Free cash flow before acquisitions and dividends increased by 54% to €998 million (H1/2016: €649 million). Free cash flow after acquisitions and dividends was -€5,645 million
(H1/2016: -€207 million).

 

Solid balance sheet structure

The Group’s total assets increased by 13% (18% in constant currency) to €52,897 million (Dec. 31, 2016: €46,697 million), mainly due to the acquisition of Quirónsalud. Current assets grew by 9% (14% in constant currency) to €12,799 million (Dec. 31, 2016: €11,744 million). Non-current assets increased by 15% (19% in constant currency) to €40,098 million (Dec. 31, 2016: € 34,953 million).

Total shareholders’ equity grew by 1% (6% in constant currency) to €21,020 million (Dec. 31, 2016: €20,849 million). The equity ratio was 39.7% (Dec. 31, 2016: 44.6%).

Group debt increased by 35% (39% in constant currency) to €19,910 million (Dec. 31, 2016: € 14,780 million), mainly driven by the acquisition financing of Quirónsalud. As of June 30, 2017, the net debt/EBITDA ratio was 3.00¹ (Dec. 31, 2016: 2.33¹; pro forma Quirónsalud 3.09¹).

¹ Net debt and EBITDA at LTM average exchange rates; before special itemsFor a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

 

Business Segments

Fresenius Medical Care

Fresenius Medical Care is the world's largest provider of products and services for individuals with chronic kidney failure. As of June 30, 2017, Fresenius Medical Care was treating 315,305 patients in 3,690 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.

• 9% sales growth in constant currency in Q2
• 46% operating cash flow growth in Q2
• 2017 outlook confirmed

Sales increased by 14% (11% in constant currency, 7% organic) to €9,019 million (H1/2016: €7,942 million). Acquisitions/divestitures and the VA agreement contributed 4% in total. In Q2/2017, sales increased by 11% (9% in constant currency, 6% organic) to €4,471 million (Q2/2016: €4,026 million).

Health Care Services sales (dialysis services and care coordination) increased by 15% (11% in constant currency) to €7,418 million (H1/2016: €6,472 million). Product sales increased by 9% (7% in constant currency) to €1,601 million (H1/2016: €1,470 million).

In North America, sales increased by 14% to €6,600 million (H1/2016: €5,778 million). Health Care Services sales grew by 15% to €6,182 million (H1/2016: €5,383 million). Product sales increased by 6% to €418 million (H1/2016: €395 million).

Sales outside North America increased by 12% (10% in constant currency) to €2,410 million (H1/2016: €2,156 million). Health Care Services sales increased by 14% (11% in constant currency) to €1,236 million (H1/2016: €1,089 million). Product sales increased by 10% (8% in constant currency) to €1,174 million (H1/2016: €1,068 million).

EBIT increased by 16% (13% in constant currency) to €1,235 million (H1/2016: €1,068 million). The EBIT margin was 13.7% (H1/2016: 13.5%). Excluding the VA agreement EBIT increased by 7% (5% in constant currency). In Q2/2017, EBIT increased by 2% (stable in constant currency) to €584 million (Q2/2016: €571 million). The EBIT margin was 13.0% (Q2/2016: 14.2%).

Net income¹ increased by 21% (19% in constant currency) to €577 million (H1/2016: €477 million). Excluding the VA agreement net income1 increased by 10% (8% in constant currency). In Q2/2017, net income¹ grew by 2% (stable in constant currency) to €269 million (Q2/2016: €264 million).

Operating cash flow increased by 37% to €1,052 million (H1/2016: €767 million). The cash flow margin increased to 11.7% (H1/2016: 9.7%). In Q2/2017, operating cash flow increased by 46% to €882 million (Q2/2016: €604 million) with a cash flow margin of 19.7% (Q2/2016: 15.0%).

Fresenius Medical Care confirms its outlook for 2017. The company expects sales to grow by 8% to 10%² in constant currency. Net income^1,2 is expected to increase by 7% to 9% in constant currency.

¹ Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA^{2 Excluding effects of VA agreement}

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

 

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.

• 7% organic sales growth in Q2; positive contributions from all regions
• 9% constant currency EBIT growth in Q2
• 2017 outlook confirmed

Sales increased by 9% (7% in constant currency, 7% organic) to €3,202 million (H1/2016: €2,946 million). Acquisitions/divestitures had no meaningful impact on sales. In Q2/2017, sales increased by 8% (7% in constant currency and organic) to €1,598 million (Q2/2016: €1,476 million).

Sales in Europe increased by 5% (6% organic) to €1,097 million (H1/2016: €1,048 million). Currency translation effects had no meaningful impact. In Q2/2017, sales increased by 3% (4% organic) to €553 million (Q2/2016: €536 million).

Sales in North America increased by 9% (6% organic) to €1,187 million (H1/2016: €1,086 million). In Q2/2017, sales increased by 11% (9% organic) to €568 million (Q2/2016: €510 million).

Sales in Asia-Pacific increased by 10% (10% organic) to €582 million (H1/2016: €531 million). In Q2/2017, sales increased by 9% (10% organic) to €302 million (Q2/2016: €277 million).

Sales in Latin America/Africa increased by 20% (11% organic) to €336 million (H1/2016: €281 million), mainly due to inflation-driven price increases. In Q2/2017, sales increased by 14% (8% organic) to €175 million (Q2/2016: €153 million).

EBIT¹ increased by 7% (6% in constant currency) to €622 million (H1/2016: €582 million). The EBIT margin¹ was 19.4% (H1/2016: 19.8%). In Q2/2017, EBIT¹ increased by 11% (9% in constant currency) to €309 million (Q2/2016: €279 million). The EBIT margin¹ increased to 19.3% (Q2/2016: 18.9%).

Net income² increased by 13% (11% in constant currency) to €379 million (H1/2016: €336 million). In Q2/2017, net income² increased by 15% (13% in constant currency) to €188 million (Q2/2016: €163 million).

Operating cash flow increased by 17% to €395 million (H1/2016: €339 million) driven by strong operating results and improved net working capital. The margin increased to 12.3% (H1/2016: 11.5%). In Q2/2017, operating cash flow was €203 million (Q2/2016: €212 million). The cash flow margin was 12.7% (Q2/2016: 14.4%).

Fresenius Kabi confirms its outlook for 2017 and expects 5% to 7% organic sales growth and EBIT growth in constant currency of 6% to 8%^3,4.

^{1 Before special items2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items3 Before transaction costs of ~€50 million for the acquisitions of Akorn, Inc. and Merck KGaA’s biosimilars business4 Before expected expenditures for the further development of Merck KGaA’s biosimilars business of ~€50 million (expected closing Q3/17)}For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

 

Fresenius Helios

Fresenius Helios is Europe's leading private hospital operator. The company comprises HELIOS Kliniken in Germany and Quirónsalud in Spain. HELIOS Kliniken operates 112 hospitals, thereof 88 acute care clinics and 24 post-acute care clinics, and treats more than 5.2 million patients annually. Quirónsalud operates 44 hospitals, 44 outpatient centers and around 300 occupational risk prevention centers, and treats approximately 9.7 million patiens per year.

• 52% sales growth (2% excluding Quirónsalud) in Q2
• 63% EBIT increase (3% excluding Quirónsalud) in Q2
• 2017 outlook confirmed

Sales increased by 46% (4% organic) to €4,256 million (H1/2016: €2,912 million). Acquisitions, mainly Quirónsalud, increased sales by 42%. In Q2/2017, sales increased by 52% (2% organic) to €2,238 million (Q2/2016: €1,477 million).

Sales of HELIOS Kliniken² increased by 4% (4% organic) to €3,038 million (H1/2016: €2,912 million). In Q2/2017, sales increased by 2% (2% organic) to €1,510 million (Q2/2016: €1,477 million). Quirónsalud is consolidated since February 1, 2017 and generated sales of €1,218 million (thereof €728 million in Q2/2017).

EBIT grew by 62% to €537 million (H1/2016: €332 million). The EBIT margin increased to 12.6% (H1/2016: 11.4%). In Q2/2017, EBIT increased by 63% to €282 million (Q2/2016: €173 million). The EBIT margin increased to 12.6% (Q2/2016: 11.7%).

EBIT of HELIOS Kliniken² increased by 8% to €359 million with a margin of 11.8% (H1/2016: 11.4%). In Q2/2017, EBIT increased by 3% to €178 million (Q2/2016: €173 million). EBIT of Quirónsalud was €178 million (thereof €104 million in Q2/2017) with a margin of 14.6%.

Net income¹ increased by 42% to €373 million (H1/2016: €262 million). In Q2/2017, net income¹ increased by 39% to €192 million (Q2/2016: €138 million).

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA^{2 HELIOS Kliniken Germany, excluding Quirónsalud}

Operating cash flow increased by 32% to €304 million (H1/2016: €230 million) driven by the first-time consolidation of Quirónsalud and good operating results. The margin was 7.1% (H1/2016: 7.9%).

Fresenius Helios confirms its outlook for 2017 and projects organic sales growth of 3% to 5%¹ and sales of ~€8.6 billion (thereof Quirónsalud: ~€2.5 billion²). EBIT is expected to increase to €1,020 to €1,070 million (thereof Quirónsalud: €300 to 320 million²).

¹ HELIOS Kliniken Germany, excluding Quirónsalud^{2 Quirónsalud consolidated for 11 months}

 

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.

• 2% sales growth in Q2 driven by service business
• Project business with strong order intake of €412 million in H1
• 2017 outlook confirmed

Sales increased by 2% (2% organic) to €481 million (H1/2016: €472 million). Sales in the project business decreased by 6% to €184 million (H1/2016: €195 million). Sales in the service business grew by 7% to €297 million (H1/2016: €277 million). In Q2/2017, sales increased by 2% (1% organic) to €258 million (Q2/2016: €254 million).

EBIT increased by 6% to €17 million (H1/2016: €16 million). The EBIT margin increased to 3.5% (H1/2016: 3.4%). In Q2/2017, EBIT increased by 22% to €11 million (Q2/2016: €9 million) with an EBIT margin of 4.3%.

Net income¹ remained unchanged at €11 million. In Q2/2017, net income¹ increased by 17% to €7 million (Q2/2016: €6 million).

Order intake reached a strong €412 million, but could not quite match the previous year’s excellent level (H1/2016: €465 million). As of June 30, 2017, order backlog grew to an all-time high of €2,188 million (December 31, 2016: €1,961 million).

Fresenius Vamed confirms its outlook for 2017 and expects both organic sales growth and EBIT growth in the range of 5% to 10%.

¹ Net income attributable to shareholders of VAMED AG

 

Conference Call

As part of the publication of the results for the first half of 2017, a conference call will be held on August 1, 2017 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/investors. Following the call, a replay will be available on our website.

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

 

If no timeframe is specified, information refers to H1/2017

Q2/2017:

• Sales: €8.5 billion (+18%, +17% in constant currency)
• EBIT¹: €1,177 million (+14%, +13% in constant currency)
• Net income^1,2: €459 million (+21%, +21% in constant currency)

H1/2017:

• Sales: €16.9 billion (+19%, +17% in constant currency)
• EBIT¹: €2,393 million (+20%, +19% in constant currency)
• Net income^1,2: €916 million (+24%, +23% in constant currency)

Stephan Sturm, CEO of Fresenius, said: “We were able to sustain our strong momentum also in the second quarter. Strong increases in sales and earnings have put us well on track to reach our full-year targets. We are very pleased with the business development of Quirónsalud while its integration into Fresenius is proceeding according to plan. A focus in the second half will be to close the acquisitions announced by Fresenius Kabi. Those will put our business on an even broader foundation for future growth.”

 

¹ Before special items
² Net income attributable to shareholders of Fresenius SE & Co. KGaA

2017 Group guidance confirmed

Fresenius confirms its guidance for 2017. Group sales are expected to increase by 15% to 17% in constant currency. Group net income^1,2,3 is expected to grow by 19% to 21% in constant currency.

Pro forma the acquisitions of Akorn and Merck KGaA’s biosimilars business, the net debt/EBITDA⁴ ratio is expected to be approximately 3.3 at the end of 2017.

17% sales growth in constant currency

Group sales increased by 19% (17% in constant currency) to €16,894 million (H1/2016: €14,218 million). Organic sales growth was 6%⁵. Positive currency translation effects (2%) were mainly related to the appreciation of the U.S. dollar against the Euro. Acquisitions and the agreement with the United States Departments of Veterans Affairs and Justice at Fresenius Medical Care (“VA agreement”) contributed 11%. In Q2/2017, Group sales increased by 18% (17% in constant currency) to €8,532 million (Q2/2016: €7,203 million). Organic sales growth was 5%. Acquisitions contributed 12% while divestitures had no meaningful impact on sales.

¹ Before transaction costs of ~€50 million for the acquisitions of Akorn, Inc. and Merck KGaA’s biosimilars business
² Before expected expenditures for the further development of Merck KGaA’s biosimilars business of ~€50 million (expected closing Q3/17)
³ Net income attributable to shareholders of Fresenius SE & Co. KGaA
⁴ Calculated at expected FY average exchange rates for both net debt and EBITDA; before transaction costs of ~€50 million; excluding further potential acquisitions
⁵ Excluding effects of VA agreement
For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Group sales by region:

23% net income² growth in constant currency

Group EBITDA³ increased by 20% (18% in constant currency) to €3,098 million (H1/2016: €2,586 million). Group EBIT³ increased by 20% (19% in constant currency) to €2,393 million (H1/2016: €1,987 million). The EBIT margin³ increased to 14.2% (H1/2016: 14.0%). In Q2/2017, Group EBIT³ increased by 14% (13% in constant currency) to €1,177 million (Q2/2016: €1,028 million), with an EBIT margin³ of 13.8% (Q2/2016: 14.3%).

Group net interest reached -€326 million³ (H1/2016: -€291 million), mainly due to the financing of the Quirónsalud acquisition.

The Group tax rate increased to 28.5%³ (H1/2016: 28.3%), mainly driven by the higher proportion of U.S. pre-tax income, primarily due to the VA agreement. In Q2/2017, the Group tax rate was 27.9%3 (Q2/2016: 28.2%).

¹ Including effects of VA agreement
² Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
³ Before special items
For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Noncontrolling interest increased to €562 million (H1/2016: €480 million), of which 96% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income¹ increased by 24% (23% in constant currency) to €916 million (H1/2016: €736 million). The VA agreement increased net income¹ growth by 2%-points. Earnings per share¹ increased by 22% (21% in constant currency) to €1.65 (H1/2016: €1.35). In Q2/2017, Group net income¹ increased by 21% (21% in constant currency) to €459 million (Q2/2016: €378 million). Earnings per share¹ increased by 19% (19% in constant currency) to €0.82 (Q2/2016: €0.70).

 

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Continued investment in growth

Spending on property, plant and equipment was €709 million (H1/2016: €674 million), primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Total acquisition spending of €6,421 million (H1/2016: €505 million) was mainly related to the acquisition of Quirónsalud.

Strong operating cash flow

Operating cash flow increased by 26% to €1,683 million (H1/2016: €1,333 million), mainly driven by the excellent development at Fresenius Medical Care and Fresenius Kabi. The cash flow margin increased to 10.0% (H1/2016: 9.4%). Operating cash flow in Q2/2017 increased by 21% to €1,207 million (Q2/2016: €997 million), with a margin of 14.1% (Q2/2016: 13.8%). As expected, the operating cash flow of Fresenius Medical Care improved considerably in Q2/2017.

Free cash flow before acquisitions and dividends increased by 54% to €998 million (H1/2016: €649 million). Free cash flow after acquisitions and dividends was -€5,645 million
(H1/2016: -€207 million).

Solid balance sheet structure

The Group’s total assets increased by 13% (18% in constant currency) to €52,897 million (Dec. 31, 2016: €46,697 million), mainly due to the acquisition of Quirónsalud. Current assets grew by 9% (14% in constant currency) to €12,799 million (Dec. 31, 2016: €11,744 million). Non-current assets increased by 15% (19% in constant currency) to €40,098 million (Dec. 31, 2016: € 34,953 million).

Total shareholders’ equity grew by 1% (6% in constant currency) to €21,020 million (Dec. 31, 2016: €20,849 million). The equity ratio was 39.7% (Dec. 31, 2016: 44.6%).

Group debt increased by 35% (39% in constant currency) to €19,910 million (Dec. 31, 2016: € 14,780 million), mainly driven by the acquisition financing of Quirónsalud. As of June 30, 2017, the net debt/EBITDA ratio was 3.00¹ (Dec. 31, 2016: 2.33¹; pro forma Quirónsalud 3.09¹).

¹ Net debt and EBITDA at LTM average exchange rates; before special items
For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Business Segments

Fresenius Medical Care

Fresenius Medical Care is the world's largest provider of products and services for individuals with chronic kidney failure. As of June 30, 2017, Fresenius Medical Care was treating 315,305 patients in 3,690 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.

• 9% sales growth in constant currency in Q2
• 46% operating cash flow growth in Q2
• 2017 outlook confirmed

Sales increased by 14% (11% in constant currency, 7% organic) to €9,019 million (H1/2016: €7,942 million). Acquisitions/divestitures and the VA agreement contributed 4% in total. In Q2/2017, sales increased by 11% (9% in constant currency, 6% organic) to €4,471 million (Q2/2016: €4,026 million).

Health Care Services sales (dialysis services and care coordination) increased by 15% (11% in constant currency) to €7,418 million (H1/2016: €6,472 million). Product sales increased by 9% (7% in constant currency) to €1,601 million (H1/2016: €1,470 million).

In North America, sales increased by 14% to €6,600 million (H1/2016: €5,778 million). Health Care Services sales grew by 15% to €6,182 million (H1/2016: €5,383 million). Product sales increased by 6% to €418 million (H1/2016: €395 million).

Sales outside North America increased by 12% (10% in constant currency) to €2,410 million (H1/2016: €2,156 million). Health Care Services sales increased by 14% (11% in constant currency) to €1,236 million (H1/2016: €1,089 million). Product sales increased by 10% (8% in constant currency) to €1,174 million (H1/2016: €1,068 million).

EBIT increased by 16% (13% in constant currency) to €1,235 million (H1/2016: €1,068 million). The EBIT margin was 13.7% (H1/2016: 13.5%). Excluding the VA agreement EBIT increased by 7% (5% in constant currency). In Q2/2017, EBIT increased by 2% (stable in constant currency) to €584 million (Q2/2016: €571 million). The EBIT margin was 13.0% (Q2/2016: 14.2%).

Net income¹ increased by 21% (19% in constant currency) to €577 million (H1/2016: €477 million). Excluding the VA agreement net income1 increased by 10% (8% in constant currency). In Q2/2017, net income¹ grew by 2% (stable in constant currency) to €269 million (Q2/2016: €264 million).

Operating cash flow increased by 37% to €1,052 million (H1/2016: €767 million). The cash flow margin increased to 11.7% (H1/2016: 9.7%). In Q2/2017, operating cash flow increased by 46% to €882 million (Q2/2016: €604 million) with a cash flow margin of 19.7% (Q2/2016: 15.0%).

Fresenius Medical Care confirms its outlook for 2017. The company expects sales to grow by 8% to 10%² in constant currency. Net income^1,2 is expected to increase by 7% to 9% in constant currency.

¹ Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
² Excluding effects of VA agreement

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

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.

• 7% organic sales growth in Q2; positive contributions from all regions
• 9% constant currency EBIT growth in Q2
• 2017 outlook confirmed

Sales increased by 9% (7% in constant currency, 7% organic) to €3,202 million (H1/2016: €2,946 million). Acquisitions/divestitures had no meaningful impact on sales. In Q2/2017, sales increased by 8% (7% in constant currency and organic) to €1,598 million (Q2/2016: €1,476 million).

Sales in Europe increased by 5% (6% organic) to €1,097 million (H1/2016: €1,048 million). Currency translation effects had no meaningful impact. In Q2/2017, sales increased by 3% (4% organic) to €553 million (Q2/2016: €536 million).

Sales in North America increased by 9% (6% organic) to €1,187 million (H1/2016: €1,086 million). In Q2/2017, sales increased by 11% (9% organic) to €568 million (Q2/2016: €510 million).

Sales in Asia-Pacific increased by 10% (10% organic) to €582 million (H1/2016: €531 million). In Q2/2017, sales increased by 9% (10% organic) to €302 million (Q2/2016: €277 million).

Sales in Latin America/Africa increased by 20% (11% organic) to €336 million (H1/2016: €281 million), mainly due to inflation-driven price increases. In Q2/2017, sales increased by 14% (8% organic) to €175 million (Q2/2016: €153 million).

EBIT¹ increased by 7% (6% in constant currency) to €622 million (H1/2016: €582 million). The EBIT margin¹ was 19.4% (H1/2016: 19.8%). In Q2/2017, EBIT¹ increased by 11% (9% in constant currency) to €309 million (Q2/2016: €279 million). The EBIT margin¹ increased to 19.3% (Q2/2016: 18.9%).

Net income² increased by 13% (11% in constant currency) to €379 million (H1/2016: €336 million). In Q2/2017, net income² increased by 15% (13% in constant currency) to €188 million (Q2/2016: €163 million).

Operating cash flow increased by 17% to €395 million (H1/2016: €339 million) driven by strong operating results and improved net working capital. The margin increased to 12.3% (H1/2016: 11.5%). In Q2/2017, operating cash flow was €203 million (Q2/2016: €212 million). The cash flow margin was 12.7% (Q2/2016: 14.4%).

Fresenius Kabi confirms its outlook for 2017 and expects 5% to 7% organic sales growth and EBIT growth in constant currency of 6% to 8%^3,4.

 

¹ Before special items
² Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
³ Before transaction costs of ~€50 million for the acquisitions of Akorn, Inc. and Merck KGaA’s biosimilars business
⁴ Before expected expenditures for the further development of Merck KGaA’s biosimilars business of ~€50 million (expected closing Q3/17)
For a detailed overview of special items please see the reconciliation tables on page 15 in the PDF document.

Fresenius Helios

Fresenius Helios is Europe's leading private hospital operator. The company comprises HELIOS Kliniken in Germany and Quirónsalud in Spain. HELIOS Kliniken operates 112 hospitals, thereof 88 acute care clinics and 24 post-acute care clinics, and treats more than 5.2 million patients annually. Quirónsalud operates 44 hospitals, 44 outpatient centers and around 300 occupational risk prevention centers, and treats approximately 9.7 million patiens per year.

• 52% sales growth (2% excluding Quirónsalud) in Q2
• 63% EBIT increase (3% excluding Quirónsalud) in Q2
• 2017 outlook confirmed

Sales increased by 46% (4% organic) to €4,256 million (H1/2016: €2,912 million). Acquisitions, mainly Quirónsalud, increased sales by 42%. In Q2/2017, sales increased by 52% (2% organic) to €2,238 million (Q2/2016: €1,477 million).

Sales of HELIOS Kliniken² increased by 4% (4% organic) to €3,038 million (H1/2016: €2,912 million). In Q2/2017, sales increased by 2% (2% organic) to €1,510 million (Q2/2016: €1,477 million). Quirónsalud is consolidated since February 1, 2017 and generated sales of €1,218 million (thereof €728 million in Q2/2017).

EBIT grew by 62% to €537 million (H1/2016: €332 million). The EBIT margin increased to 12.6% (H1/2016: 11.4%). In Q2/2017, EBIT increased by 63% to €282 million (Q2/2016: €173 million). The EBIT margin increased to 12.6% (Q2/2016: 11.7%).

EBIT of HELIOS Kliniken² increased by 8% to €359 million with a margin of 11.8% (H1/2016: 11.4%). In Q2/2017, EBIT increased by 3% to €178 million (Q2/2016: €173 million). EBIT of Quirónsalud was €178 million (thereof €104 million in Q2/2017) with a margin of 14.6%.

Net income¹ increased by 42% to €373 million (H1/2016: €262 million). In Q2/2017, net income¹ increased by 39% to €192 million (Q2/2016: €138 million).

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA
² HELIOS Kliniken Germany, excluding Quirónsalud

Operating cash flow increased by 32% to €304 million (H1/2016: €230 million) driven by the first-time consolidation of Quirónsalud and good operating results. The margin was 7.1% (H1/2016: 7.9%).

Fresenius Helios confirms its outlook for 2017 and projects organic sales growth of 3% to 5%¹ and sales of ~€8.6 billion (thereof Quirónsalud: ~€2.5 billion²). EBIT is expected to increase to €1,020 to €1,070 million (thereof Quirónsalud: €300 to 320 million²).

¹ HELIOS Kliniken Germany, excluding Quirónsalud
² Quirónsalud consolidated for 11 months

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.

• 2% sales growth in Q2 driven by service business
• Project business with strong order intake of €412 million in H1
• 2017 outlook confirmed

Sales increased by 2% (2% organic) to €481 million (H1/2016: €472 million). Sales in the project business decreased by 6% to €184 million (H1/2016: €195 million). Sales in the service business grew by 7% to €297 million (H1/2016: €277 million). In Q2/2017, sales increased by 2% (1% organic) to €258 million (Q2/2016: €254 million).

EBIT increased by 6% to €17 million (H1/2016: €16 million). The EBIT margin increased to 3.5% (H1/2016: 3.4%). In Q2/2017, EBIT increased by 22% to €11 million (Q2/2016: €9 million) with an EBIT margin of 4.3%.

Net income¹ remained unchanged at €11 million. In Q2/2017, net income¹ increased by 17% to €7 million (Q2/2016: €6 million).

Order intake reached a strong €412 million, but could not quite match the previous year’s excellent level (H1/2016: €465 million). As of June 30, 2017, order backlog grew to an all-time high of €2,188 million (December 31, 2016: €1,961 million).

Fresenius Vamed confirms its outlook for 2017 and expects both organic sales growth and EBIT growth in the range of 5% to 10%.

¹ Net income attributable to shareholders of VAMED AG

Conference Call

As part of the publication of the results for the first half of 2017, a conference call will be held on August 1, 2017 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/media-calendar. Following the call, a replay will be available on our website.

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

 

 

 

 

 

 

 

 

 

 

 

Fresenius Medical Care delivers another quarter of strong revenue growth

• Strong revenue increase by 11% supported by growth in all regions
• North American Care Coordination activities grew by 32%
• Operating cash flow improved by 46% compared to Q2 2016
• FY 2017 outlook confirmed

Key figures (IFRS)

 

EUR million	Q2 2017	Growth yoy	H1 2017	Growth yoy
Revenue	4,471	11%	9,019	14%
Adjusted revenue1	4,473	11%	8,921	12%
Operating income (EBIT)	583	2%	1,235	16%
Adjusted operating income (EBIT)1	591	4%	1,144	7%
Net income2	269	2%	577	21%
Adjusted net income1,2	274	4%	523	10%
Basic earnings per share (in EUR)	0.88	2%	1.88	21%

¹ Adjusted for the effects of the agreement with United States Departments of Veterans Affairs and Justice for outstanding payments
² Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
 

Rice Powell, Chief Executive Officer of Fresenius Medical Care, stated: “We have delivered another quarter of strong revenue growth. The increase was supported by positive developments in all regions and very strong growth in our Care Coordination business. With our continued strong performance in the first half of this year, we are on track to deliver on our outlook for 2017.”

Revenue & Earnings

Revenue in the second quarter of 2017 improved by 11% and reached EUR 4,471 million (+9% at constant currency), largely driven by strong Health Care Services revenue growth of 11% in North America (+8% at constant currency). Total Health Care Services revenue increased by 11% (+9% at constant currency) to EUR 3,649 million, while product revenue grew 9% (+8% at constant currency) to EUR 822 million. Organic revenue contributions increased by 6% for Health Care Services and by 7% for the products business. In the first half 2017, revenue grew by 14% to EUR 9,019 million. Health Care Services increased by 15% (+11% at constant currency), while product related revenue increased by 9% (+7% at constant currency).

Operating Income (EBIT) in the second quarter of this year increased by 2% to EUR 583 million resulting in a margin of 13.0% (4%¹ on an adjusted basis); The EBIT margin was impacted by higher expenses for personnel and bad debt, foreign currency transaction losses and higher cost in the pharmacy service business. For the first six months, operating income increased by 16% to EUR 1,235 million (7%¹ on an adjusted basis).

Net interest expense was EUR 95 million compared to EUR 90 million in the second quarter of 2016. The increase was driven by an increased average debt level coupled with lower average interest rates as well as unfavorable foreign translation effect.

Income tax expense was EUR 150 million, which translates into an effective tax rate of 30.8%, compared to last year’s Q2 with a tax rate of 31.1%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA developed in line with operating income and was EUR 269 million in the second quarter of 2017. Based on a number of approximately 306.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) amounted to EUR 0.88 compared to EUR 0.86 for the second quarter of 2016. For the first half of 2017, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 21% to EUR 577 million.

¹ Adjusted for the effects of the agreement with United States Departments of Veterans Affairs and Justice for outstanding payments

Development of Reporting Segments

In the second quarter of this year North America revenue increased by 11% to EUR 3,225 million and corresponds to 72% of total revenue. At constant currency rates growth was at 8%. The Dialysis revenue grew by 6% (3% at constant currency). Care Coordination revenue showed again a very strong increase of 32% (29% at constant currency) and contributed EUR 698 million. The continued progress in Care Coordination was driven by organic growth of 19% and contribution from acquisitions of 10%. Dialysis Care revenue grew by 6% (4% at constant currency) and was driven by same market treatment growth (3%) and contributions from acquisitions (1%). Product revenue increased by 2% (stable at constant currency) and was supported by higher sales of renal drugs and products for peritoneal dialysis as well as disposables for hemo dialysis which was partially offset by lower sales in machines.

Operating income of the North America segment was EUR 470 million (+3%), the operating income margin was 14.6%, below last year’s Q2 level (15.7%).

Dialysis business margin was negatively impacted by higher expense for personnel, supplies and rent. Positive impact came from a consent agreement on certain pharmaceuticals, lower costs for health care supplies and lower bad debt expenses. Compared to Q2 last year the Dialysis margin was slightly down to 18.2% (-20bps). Care Coordination margins decreased to 1.2% due to higher bad debt expense, the impact from lower profit contribution for vascular services and higher costs for pharmacy services. This was partially offset by earnings recognized from the BPCI initiative for hospital related physician services as well as the impact from improved contributions for laboratory services. From a sequential perspective, Care Coordination showed a positive swing in profits of around EUR 10 million.

For the first half of 2017, North America revenue increased by 14% to EUR 6,600 million. Operating income increased by 16% to EUR 995 million.

In the second quarter of this year EMEA revenue increased by 7% (7% at constant currency) to EUR 642 million, mainly driven by a positive business development in Dialysis Product revenue which increased by 6% to EUR 311 million. The company generated EUR 21 million of Non-Dialysis Product revenue, in line with the previous quarter. Health Care Services revenue increased by 6% (5% at constant currency). Operating income was EUR 113 million in Q2 2017, the operating income margin decreased from 20.7% to 17.6%. This was driven by foreign currency transaction losses and investments into Xenios as well as pressure on reimbursement in certain countries. This was partially offset by the positive impact from higher revenue and lower bad debt expense.

For the first half of 2017, EMEA revenue increased by 7% to EUR 1,255 million, while operating income of EUR 227 million was 6% below last year´s level.

In the second quarter of this year Asia-Pacific revenue grew with a strong pace by 19% (17% at constant currency) to EUR 417 million. Health Care Services generated revenue of EUR 191 million, reflecting 6% organic revenue growth. With a growth of 17% (15% constant currency) to EUR 226 million, the Health Care Products business also delivered a very strong performance, mainly driven by higher sales of dialyzers, machines and products for acute care treatments as well as blood lines. Operating income was EUR 78 million (+17%) in line with top-line growth, supported by an improved revenue mix and business growth mainly in China. Operating income margin of 18.7% was slightly below the level of last year (-30bps).

Based on the acquisition of Cura day hospital group in Australia – a big step into Care Coordination outside the North American market – the company starts to report dedicated Care Coordination revenue and operating income within the Asia-Pacific segment. In addition to Cura, there are historically minor activities in the reporting segment that also relate to a coordinated care approach and will now, going forward, also be reported in Care Coordination.

For the first half of 2017, Asia-Pacific revenue increased by 15% to EUR 795 million. Operating income improved to EUR 160 million, an increase of 27%.

Latin America delivered revenue of EUR 183 million, an improvement of 18% (16% at constant currency). Product revenue grew by 17% (10% at constant currency) based on higher sales of dialyzers, and hemodialysis solutions partially offset by lower peritoneal dialysis products. Health Care Services revenue increased by 18% (18% at constant rates) to EUR 131 million. Operating income was at EUR 12 million, compared to EUR 14 million in previous year’s Q2. Operating income margin was at 6.8% in Q2 2017 compared to 9.3% in Q2 2016. The development is mainly the result of unfavorable foreign currency transaction effects.

For the first half of 2017, Latin America revenue increased by 22% to EUR 360 million. Operating income improved to EUR 27 million, an increase of 11%.

Cash flow

In the second quarter of 2017 EUR 883 million in net cash provided by operating activities were generated, representing 20% of revenue, compared to EUR 604 million in last year’s Q2. The cash flow was positively influenced by seasonality in invoicing. The number for DSO (days sales outstanding) improved sequentially by 7 days compared to Q1 2017 and reached 66 days.

Employees

As of end of June 2017, Fresenius Medical Care had 112,163 employees (full-time equivalents) worldwide, compared to 106,556 employees at the end of June 2016. This increase was mainly attributable to our continued organic growth and acquired companies.

Outlook 2017 confirmed

Based on the solid business development in the first six month of 2017, Fresenius Medical Care confirms its full year outlook 2017. The company expects revenue growth between +8% and +10% at constant currency.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +7% to +9% at constant currency over the previous year. The effects of the agreement with the U.S. Departments of Veterans Affairs and Justice are excluded.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2017 on Tuesday, August 1, 2017 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 in the “Investors/Events” section. A replay will be available shortly after the call.

Please refer to the attachments for a complete overview of the results for the second quarter and first half of 2017.

 

Unicyte AG, a pioneering leader in human liver stem cells and nano-extracellular vesicles, announced today the formation of its inaugural Scientific Advisory Board with the appointments of Professors Giovanni Camussi, Camillo Ricordi and Paul Robbins.

The board will work closely with Unicyte’s management team to accelerate the company’s lead candidate programs for treating diabetes, non-alcoholic fatty liver disease, diabetic nephropathy and renal cancer. In addition, it will provide scientific advice for the collaboration between Unicyte and Italy’s University of Turin, in order to foster innovation and new research programs.

“We are thrilled to establish a Scientific Advisory Board for Unicyte with some of the world's leading experts in regenerative medicine, diabetes, metabolic disease and aging as we move our therapeutic programs toward clinical validation,“ said Florian Jehle, CEO of Unicyte and Vice President, Technology & Innovation Management within Research & Development at Fresenius Medical Care.

Unicyte originated from the long-standing research collaboration between Fresenius Medical Care, the world's leading provider of products and services for individuals with renal diseases, and Professor Camussi, a top expert in nano-extracellular vesicles and stem cells at the University of Turin. Now an independent affiliate of Fresenius Medical Care, Unicyte has a broad preclinical pipeline focusing on kidney and liver disorders, diabetes and oncology, and will work with partners when needed to advance these therapeutic programs.

The three new members of the Scientific Advisory Board are all highly respected scientists, with international reputations for their research and extensive work on important scientific bodies:

• Giovanni Camussi is Professor and Chairman of Nephrology in the Internal Medicine and Medical Sciences departments at the University of Turin’s School of Medicine and Biotechnology. His research focuses on the purification and characterization of stem cell-derived nano-extracellular vesicles and the characterization of their coding and non-coding RNA (ribonucleic acid) molecules. In particular, he has investigated the paracrine action of nano-extracellular vesicles.
• Camillo Ricordi is Professor of Surgery and Director of the Diabetes Research Institute and the Cell Transplant Program at the University of Miami. He led the team that performed the first series of successful clinical islet allotransplants to reverse diabetes, a procedure now used worldwide by laboratories performing clinical islet transplants.
• Paul D. Robbins is Professor of Molecular Medicine at the Scripps Research Institute in Jupiter, Florida and Director of its Center on Aging. His research focuses on developing therapeutic approaches to extend health and reduce frailty using mouse models of aging.¹

Dr. Daniel Gau, Unicyte’s Head of Business Development, said: “Our Scientific Advisory Board comes at the right time to endorse our leading position in the fields of human liver stem cells and nano-extracellular vesicles, as we are anticipating first partnerships for future commercialization. At the same time, the board will guide Unicyte in identifying new areas of focus and potentially disruptive therapies, for the benefit of our patients.”

¹The academic, scientific and research activities and posts of Professors Camussi, Ricordi and Robbins are listed in more detail in an appendix, which can be found in the PDF document.

 

The Supervisory Board of Fresenius Management SE has unanimously appointed Rachel Empey (41) as Chief Financial Officer of Fresenius, as of August 1, 2017. In this position she will succeed Stephan Sturm (54), who has continued to serve as CFO since his appointment as Chief Executive Officer of Fresenius last year.

Rachel Empey has been Chief Financial and Strategy Officer of Telefónica Deutschland Holding AG (“Telefónica Deutschland”) since 2011. Telefónica Deutschland is listed on the Frankfurt Stock Exchange and, with a market capitalization of more than €12 billion, is a leading TecDAX constituent. Before joining the Management Board of Telefónica Deutschland, Rachel Empey held a number of key international finance and controlling positions in the Telefónica group. She started her career as an auditor at Ernst & Young and business analyst at Lucent Technologies. Rachel Empey is British, a Chartered Accountant and holds an MA (Hons) in Mathematical Sciences from the University of Oxford.

Dr. Gerd Krick, Chairman of Fresenius Management SE’s Supervisory Board, said: “We are pleased to welcome a true financial expert and highly experienced manager as our new CFO. Among all the excellent candidates for this position, Rachel Empey impressed us with her exceptional technical expertise, sound strategic thinking and successful track record. She is a great addition to our proven management team.”

Stephan Sturm said: “I am very much looking forward to working with Rachel Empey. She is going to be the perfect fit for our Management Board. Along with first-rate qualifications and skills, wide-ranging experience and an engaging personality, she will bring new insights to Fresenius from another dynamic and innovative industry.”

Rachel Empey said: “I am very excited to be joining Fresenius and taking up this tremendous professional opportunity. Fresenius has a very strong position in the healthcare industry. I look forward to contributing to the company’s continued growth and consistent success as Chief Financial Officer.”

 

The Supervisory Board of Fresenius Management SE has unanimously appointed Rachel Empey (41) as Chief Financial Officer of Fresenius, as of August 1, 2017. In this position she will succeed Stephan Sturm (54), who has continued to serve as CFO since his appointment as Chief Executive Officer of Fresenius last year.

Rachel Empey has been Chief Financial and Strategy Officer of Telefónica Deutschland Holding AG (“Telefónica Deutschland”) since 2011. Telefónica Deutschland is listed on the Frankfurt Stock Exchange and, with a market capitalization of more than €12 billion, is a leading TecDAX constituent. Before joining the Management Board of Telefónica Deutschland, Rachel Empey held a number of key international finance and controlling positions in the Telefónica group. She started her career as an auditor at Ernst & Young and business analyst at Lucent Technologies. Rachel Empey is British, a Chartered Accountant and holds an MA (Hons) in Mathematical Sciences from the University of Oxford.

Dr. Gerd Krick, Chairman of Fresenius Management SE’s Supervisory Board, said: “We are pleased to welcome a true financial expert and highly experienced manager as our new CFO. Among all the excellent candidates for this position, Rachel Empey impressed us with her exceptional technical expertise, sound strategic thinking and successful track record. She is a great addition to our proven management team.”

Stephan Sturm said: “I am very much looking forward to working with Rachel Empey. She is going to be the perfect fit for our Management Board. Along with first-rate qualifications and skills, wide-ranging experience and an engaging personality, she will bring new insights to Fresenius from another dynamic and innovative industry.”

Rachel Empey said: “I am very excited to be joining Fresenius and taking up this tremendous professional opportunity. Fresenius has a very strong position in the healthcare industry. I look forward to contributing to the company’s continued growth and consistent success as Chief Financial Officer.”

 

 

 

Fresenius Helios is investing more than €18 million to expand the company’s hospital in the German town of Bad Saarow, about 25 kilometers (15 miles) east of Berlin. The project at HELIOS Hospital Bad Saarow includes construction of a new building that will add bed capacity to meet growing demand, and an expansion of the radiology department. The construction is scheduled for completion in spring 2019.

Fresenius Helios is investing more than €18 million to expand the company’s hospital in the German town of Bad Saarow, about 25 kilometers (15 miles) east of Berlin. The project at HELIOS Hospital Bad Saarow includes construction of a new building that will add bed capacity to meet growing demand, and an expansion of the radiology department. The construction is scheduled for completion in spring 2019.