Fresenius expects new records for sales and earnings in the current business year. At the Annual General Meeting in Frankfurt today, Ulf Mark Schneider, CEO of Fresenius, confirmed the 2016 targets. The company is forecasting sales growth of 6 to 8 percent and an increase of 8 to 12 percent in net income, both in constant currency.

In his speech, Schneider also confirmed the company’s mid-term financial goals: “For fiscal 2019 we are targeting sales of €36 to €40 billion, and net income between €2 and €2.25 billion. This means a doubling of our net income within a period of just five years, and a fourfold increase in one decade.”

Schneider said that by combining a disciplined growth focus with operational and structural stability, the company has built a solid basis for excellent long-term performance. “2015 marked our 12th consecutive record year and delivered our 23rd straight dividend increase,” the Fresenius CEO added. “These results demonstrate that we are continuing to generate strong, stable growth over time.”

Shareholders approved with a majority of 90.68% the 23rd consecutive dividend increase proposed by the general partner and the Supervisory Board. The dividend was raised by 25% to €0.55 per share.

With clear majorities, the shareholders elected all candidates for a new Supervisory Board. Prof. Dr. med. Iris Löw-Friedrich, Chief Medical Officer and Executive Vice President of UCB S.A., and Hauke Stars, a Member of the Management Board of Deutsche Börse AG, were elected to the 12-member body for the first time, as shareholder representatives.

Shareholder majorities of 99.64% and 99.52%, respectively, approved the actions of the Management and Supervisory Boards in 2015.

At the Annual General Meeting, 72.73% of the subscribed capital was represented.

Fresenius Medical Care, the world’s leading provider of dialysis products and services, expects significant sales and earnings growth in 2016. At the Annual General Meeting in Frankfurt today, CEO Rice Powell confirmed the full-year guidance announced in February. The company is targeting 7 to 10 percent revenue growth in constant currency, and an increase in net income of 15 to 20 percent.

Powell also confirmed Fresenius Medical Care’s long-term financial goals: Revenue of $28 billion is targeted for 2020, corresponding to an average growth rate of about 10 percent. Over the same period, an annual, high single-digit percent increase in net income is expected.

“We have every reason to look to the future with great confidence,” Powell said in his speech to the shareholders. “In the past year, we have positioned ourselves to continue the unique success story of Fresenius Medical Care in the years to come. We will continue to grow our dialysis services and products business while actively shaping the development of the dialysis market. We are extending our range of related medical services in the area of Care Coordination.”

A large shareholder majority of 99.96 percent approved the company’s 19th consecutive dividend increase. The dividend will be raised from €0.78 to €0.80 per share.

All candidates for the new term of the Supervisory Board were elected by the shareholders with clear majorities. Joining the Board for the first time are Deborah Doyle McWhinney, former Chief Executive Officer and Chief Operating Officer of Citi Enterprise Payments (Citigroup, Inc.), and Pascale Witz, Executive Vice President, Global Diabetes & Cardiovascular at Sanofi S.A.

Shareholder majorities of 99.92%, respectively, approved the actions of the Management and Supervisory Boards in 2015.

At the Annual General Meeting, 77.77% of the subscribed capital was represented.

The next Annual General Meeting is scheduled for May 11, 2017.

 

• Group revenue increased +6%, strong net income growth of +9%
• North America: revenue +10%, significant increase of operating income (EBIT) +28%
• Segments outside North America strongly influenced by currency
• Care Coordination with strong organic growth of +17%
• First quarter performance in line to achieve full year guidance

First quarter 2016 key figures:

Net revenue: $4,205 million, +6%
Operating income (EBIT): $540 million, +7%
Net income¹: $228 million, +9%
Basic earnings per share: $0.75, +8%

 

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

Rice Powell, Chief Executive Officer of Fresenius Medical Care stated: “We had a strong start to the year. Our core dialysis service and products business showed a very strong underlying growth globally. While our businesses outside the United States were largely influenced by currency, the North American market delivered a very satisfying result. In addition, Care Coordination continues to show strong topline growth. We are investing in our future growth in this area, but also expect the profitability to improve again in the course of the year. We are on track to achieve our full year guidance for 2016.”

Revenue & Earnings

Net revenue for the company improved by 6% and reached $4,205 million (+9% at constant currency), largely driven by strong Net Health Care revenue growth of +10% in North America. Net Health Care revenue contributed a 7% increase to $3,414 million, while product revenue grew 2% (6% at constant currency) to $791 million. Solid organic growth rates of 7% for Net Health Care as well as for the products business demonstrated a solid business performance. The development was primarily driven by higher revenue per treatment and more dialysis days.

Total operating income (EBIT) increased by 7% to $540 million (margin of 12.8%). This increase was driven by lower costs for Health Care supplies, a favorable impact from higher volume with commercial payors and further efficiency gains partially offset by higher personnel expense related to dialysis services in the North America segment, unfavourable foreign exchange effects in all segments outside North America as well as higher legal and consulting expenses.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2016 was $228 million, a strong increase of 9% compared to $210 million of last year’s first quarter. Based on a number of approximately 305.3 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) for the first three months 2016 amounted to $0.75, compared to $0.69 for the first quarter of 2015.

Segment development

North America revenue increased by 10% to $3,044 million (72% of total revenue). Dialysis business grew by 8%, Care Coordination increased by 20%. The continued progress in Care Coordination was driven by organic growth of +17% and reached $522 million in revenues. Dialysis growth was positively influenced by a higher volume with commercial payors, two more dialysis days and increased product sales (especially machines and dialyzers).

The substantially improved dialysis operating income margin of 16.9% (+300 basis points compared to Q1 2015) was due to lower costs from Health Care supplies, a favourable impact from commercial payors as well as decreased legal expenses. Total operating income (EBIT) for the quarter under review was $436 million, an impressive increase of 28%. Total operating income margin improved to 14.3%.

EMEA revenue increased by 5% to $631 million at constant currency. Positive business movements from an increase in dialysis treatments were offset by the negative currency impact, especially due to the strong US Dollar. Also product revenue came in with a 5% plus at constant currency ($330 million) due to increased sales of bloodlines, products for acute care treatments and hemodialysis solutions and concentrates. Operating income of $130 million in Q1 2016 was negatively impacted mainly due to the weakening of various local currencies.

Asia Pacific grew by 10% at constant currency to $374 million. The region recorded $168 million in Net Health Care revenue, based on an increase of 6% in dialysis treatments. With a growth of +16% at constant currency to $206 million, the product business showed a very strong sales performance in dialysers, bloodlines, machines and peritoneal dialysis products. Operating income decreased to $65 million (-23%) and was impacted by unfavorable foreign exchange effects, increased costs related to further sales development and costs associated with changes in the Management Board.

Latin America delivered revenue of $153 million, an improvement of 5% at constant currency (-23% on a reported basis). In addition to the negative currency impact, the business was mainly influenced by clinics sold in Venezuela in 2015. Dialysis treatments decreased accordingly by 6%. Product revenue decreased by 4% at constant currency to $40 million. Operating income was at $11 million, compared to $18 million in Q1 2015. Operating income margin decreased to 7.1% in Q1 2016 from 9.0% in Q1 2015 mainly due to higher costs related to inflation, unfavorable foreign exchange effects and an unfavorable impact from manufacturing production costs, partially offset by the impact from prior year lower margin dialysis service business in Venezuela which was subsequently divested in the third quarter of 2015.

Net interest expense in Q1 2016 was $105 million compared to $102 million in the first quarter of 2015. The slight increase is based on a lower interest income as a result of the repayment of interest bearing notes receivables.

Income tax expense was $138 million for the first quarter of 2016, which translates into an effective tax rate of 31.8%, substantially lower than in Q1 2015 (34.3%). This was primarily driven by increased tax-free income attributable to noncontrolling interest in the US and lower tax rates in other jurisdictions.

Cash flow

In the first quarter of 2016, the company generated $180 million in net cash provided by operating activities, representing 4% of revenue, compared to $447 million in last year’s Q1. The lower level was driven by an adjustment in invoicing within the quarter and the timing of cash payroll payments in the US. The number for DSO (days sales outstanding) increased accordingly to 74 days (71 days in Q1 2015). These timing effects will have no meaningful impact on the full year 2016.

Employees

As of March 31, 2016, Fresenius Medical Care had 104,687 employees (full-time equivalents) worldwide, compared to 101,543 employees at the end of March 2015. This increase was mainly attributable to our continued organic growth. 

Outlook 2016 confirmed

Based on the positive Q1 business development, Fresenius Medical Care confirms its full year outlook 2016. The company expects a currency-adjusted revenue growth between +7% and +10% for 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +15% to +20% over the previous year.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2016 on Tuesday, May 3, 2016 at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.

Please refer to the attachments for a complete overview of the results for the first quarter of 2016.

 

For a detailed overview of special items please see the reconciliation table on page 13 of the pfd file.

Q1/2016:

• Sales: €6.9 billion (+7%, +7% in constant currency)
• EBIT¹: €959 million (+13%, +11% in constant currency)
• Net income^1,2: €362 million (+24%, +23% in constant currency)

Ulf Mark Schneider, CEO of Fresenius, said: “We have seen a strong start into 2016, reflected in our double-digit earnings growth. All business segments and regions have contributed to this success, demonstrating yet again enormous consistency in our sales and earnings development. We remain fully on track to achieve our 2016 and mid-term targets.“

 

 

¹2015 before special items
²Net income attributable to shareholders of Fresenius SE & Co. KGaA

Group guidance for 2016 confirmed
Fresenius confirms its guidance for 2016. Sales are expected to increase by 6% to 8% in constant currency. Net income^1,2, is expected to grow by 8% to 12% in constant currency.

The net debt/EBITDA³ ratio is expected to be approximately 2.5 at the end of 2016.

 

¹Net income attributable to shareholders of Fresenius SE & Co. KGaA
²2015 before special items
³Calculated at FY average exchange rates for both net debt and EBITDA; excluding potential acquisitions

7% sales growth in constant currency
Group sales increased by 7% (7% in constant currency) to €6,914 million (Q1/2015: €6,483 million). Organic sales growth was 7%. Acquisitions contributed 1% and divestitures reduced sales by 1%.

Group sales by region:

23% net income¹ growth in constant currency
Group EBITDA² increased by 11% (10% in constant currency) to €1,237 million (Q1/2015: €1,115 million). Group EBIT² increased by 13% (11% in constant currency) to €959 million (Q1/2015: €851 million). The EBIT margin² increased to 13.9% (Q1/2015: 13.1%).

Group net interest decreased to -€152 million (Q1/2015: -€165 million), mainly due to more favorable financing terms and lower net debt.

The Group tax rate (before special items) decreased to 28.4% (Q1/2015: 30.2%), mainly due to a lower tax rate at Fresenius Medical Care.

Noncontrolling interest increased to €216 million (Q1/2015: €187 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income^1,2, increased by 24% (23% in constant currency) to €362 million (Q1/2015: €292 million). Earnings per share^1,2 increased by 22% (22% in constant currency) to €0.66 (Q1/2015: €0.54).

 

¹Net income attributable to shareholders of Fresenius SE & Co. KGaA
²2015 before special items
³Calculated at FY average exchange rates for both net debt and EBITDA; excluding potential acquisitions

Continued investment in growth
Spending on property, plant and equipment was €313 million (Q1/2015: €273 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €204 million (Q1/2015: €104 million).

Cash flow development
Operating cash flow decreased by 37% to €334 million (Q1/2015: €531 million) with a margin of 4.8% (Q1/2015: 8.2%). The decrease was mainly due to an adjustment in invoicing within the quarter and the timing of cash payroll payments at Fresenius Medical Care North America. Fresenius Medical Care expects that these effects will have no meaningful impact on the full year 2016 cash flow.

Free cash flow before acquisitions and dividends decreased to €2 million (Q1/2015: €258 million). Free cash flow after acquisitions and dividends was -€241 million (Q1/2015: €256 million).

Solid balance sheet structure
The Group’s total assets decreased by 1% (increased 1% in constant currency) to €42,445 million (Dec. 31, 2015: €42,959 million). Current assets grew by 1% (3% in constant currency) to €10,584 million (Dec. 31, 2015: €10,479 million). Non-current assets decreased by 2% (increased 1% in constant currency) to €31,861 million (Dec. 31, 2015: € 32,480 million).

Total shareholders’ equity was virtually unchanged at €18,009 million (Dec. 31, 2015: €18,003 million). In constant currency, it increased by 3%. The equity ratio increased to 42.4% (Dec. 31, 2015: 41.9%).

Group debt decreased by 1% (increased 1% in constant currency) to €14,549 million (Dec. 31, 2015: € 14,769 million). As of March 31, 2016, the net debt/EBITDA ratio was 2.67¹ (Dec. 31, 2015: 2.68¹).

¹2015 before special items; at LTM average exchange rates for both net debt and EBITDA

 
Increased number of employees
As of March 31, 2016, the number of employees increased by 1% to 223,704 (Dec. 31, 2015: 222,305).
 
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 March 31, 2016, Fresenius Medical Care was treating 294,043 patients in 3,432 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
• Strong sales and EBIT growth in North America
• 2016 outlook confirmed

Sales increased by 6% (9% in constant currency) to US$4,205 million (Q1/2015: US$3,960 million). Organic sales growth was 7%. Acquisitions contributed 2%. Currency translation effects reduced sales by 3%.

Health Care services sales (dialysis services and care coordination) increased by 7% (9% in constant currency) to US$3,414 million (Q1/2015: US$3,182 million). Dialysis product sales increased by 2% (6% in constant currency) to US$791 million (Q1/2015: US$778 million).

In North America, sales increased by 10% to US$3,044 million (Q1/2015: US$2,771 million). Health Care services sales grew by 10% to US$2,832 million (Q1/2015: US$2,571 million). Dialysis product sales increased by 6% to US$212 million (Q1/2015: US$200 million).

Sales outside North America decreased by 2% (increased by 7% in constant currency) to US$1,158 million (Q1/2015: US$1,180 million). Health Care services sales decreased by 5% (increased by 6% in constant currency) to US$582 million (Q1/2015: US$611 million). Dialysis product sales increased by 1% (8% in constant currency) to US$576 million (Q1/2015: US$569 million).

EBIT increased by 7% (8% in constant currency) to US$540 million (Q1/2015: US$504 million). The EBIT margin was 12.8% (Q1/2015: 12.7%).
Net income¹ increased by 9% (8% in constant currency) to US$228 million (Q1/2015: US$210 million).

Operating cash flow decreased by 60% to US$180 million (Q1/2015: US$447 million). The cash flow margin was 4.3% (Q1/2015: 11.3%). The decrease was mainly due to an adjustment in invoicing within the quarter and the timing of cash payroll payments at Fresenius Medical Care North America. Fresenius Medical Care expects that these effects will have no meaningful impact on the full year 2016 cash flow.

Fresenius Medical Care confirms its outlook for 2016. The company expects sales to grow by 7% to 10% in constant currency and net income¹ is expected to increase by 15% to 20%² in 2016.

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

 

¹Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
²2015 before GranuFlo®/NaturaLyte® settlement costs (-US$37 million after tax) and before acquisitions (US$9 million after tax); hence the basis for expected net income growth is US$1,057 million.
 

Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

• 10% organic sales growth in Q1
• 19% constant currency EBIT¹ growth in Q1
• 2016 outlook confirmed

Sales increased by 5% (8% in constant currency) to €1,470 million (Q1/2015: €1,394 million). Organic sales growth was 10%. Divestitures and currency translation effects reduced sales by 2% and 3% respectively.

Sales in Europe decreased by 1% (increased organically by 1%) to €512 million (Q1/2015: €518 million), mainly due to the divestment of the German oncology compounding business in February 2015. Sales in North America increased by 22% (organic growth: 20%) to €567 million (Q1/2015: €473 million). North American sales growth was mainly driven by persisting IV drug shortages as well as new product launches. Adverse currency translation effects decreased sales in Asia-Pacific by 5% (increased organically by 7%) to €254 million (Q1/2015: €268 million) and in Latin America/Africa by 5% (increased organically by 21%) to €128 million (Q1/2015: €135 million).

EBIT¹ increased by 20% (19% in constant currency) to €309 million (Q1/2015: €257 million). The EBIT margin¹ improved to 21.0% (Q1/2015: 18.5%).

Net income² increased by 28% (26% in constant currency) to €179 million (Q1/2015: €140 million).

Based on the excellent net income development operating cash flow increased by 49% to €124 million (Q1/2015: €83 million) with a margin of 8.4% (Q1/2015: 6.0%).

Fresenius Kabi confirms its outlook for 2016 and projects low single-digit organic sales growth. EBIT¹ in constant currency is expected to be roughly flat compared with 2015.

¹2015 before special items
²Net income attributable to shareholders of Fresenius Kabi AG; 2015 before special items

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.7 million patients per year, thereof approximately 1.3 million inpatients, and operates more than 34,000 beds.

• 3% organic sales growth
• 50 bps EBIT margin¹ increase to 11.1%
• 2016 outlook confirmed

Sales increased by 3% to €1,435 million (Q1/2015: €1,391 million). Organic sales growth was 3%. Acquisitions and divestitures had no material effect.

EBIT¹ grew by 8% to €159 million (Q1/2015: €147 million). The EBIT margin¹ increased to 11.1% (Q1/2015: 10.6%).

Net income² increased by 16% to €124 million (Q1/2015: €107 million).

Fresenius Helios confirms its outlook for 2016 and projects organic sales growth of 3% to 5%. EBIT is expected to increase to €670 to €700 million.

 

¹2015 before special items
²Net income attributable to shareholders of HELIOS Kliniken GmbH; 2015 before special items

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

• Project and service business contributed equally to 6% organic sales growth
• Strong order intake of €237 million
• 2016 outlook confirmed

Sales increased by 5% (5% in constant currency) to €218 million (Q1/2015: €208 million). Organic sales growth was 6%. Sales in the project business increased by 6% to €85 million (Q1/2015: €80 million). Sales in the service business grew by 4% to €133 million (Q1/2015: €128 million).

EBIT remained unchanged with €7 million (Q1/2015: €7 million). The EBIT margin was 3.2% (Q1/2015: 3.4%).

Net income¹ grew by 25% to €5 million (Q1/2015: €4 million).

Order intake increased to €237 million (Q1/2015: €192 million). As of March 31, 2016, order backlog grew to €1,803 million (December 31, 2015: €1,650 million).

Fresenius Vamed confirms its outlook for 2016 and expects organic sales growth in the range of 5% to 10% and EBIT growth of 5% to 10%.

 

 

¹Net income attributable to shareholders of VAMED AG

Conference Call
As part of the publication of the results for Q1/2016, a conference call will be held on May 3, 2016 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. Following the call, a replay will be available on our website.

 

 

 

 

 

For a detailed overview of special items please see the reconciliation table on page 13 of the pfd file.

Q1/2016:

• Sales: €6.9 billion (+7%, +7% in constant currency)
• EBIT¹: €959 million (+13%, +11% in constant currency)
• Net income^1,2: €362 million (+24%, +23% in constant currency)

Ulf Mark Schneider, CEO of Fresenius, said: “We have seen a strong start into 2016, reflected in our double-digit earnings growth. All business segments and regions have contributed to this success, demonstrating yet again enormous consistency in our sales and earnings development. We remain fully on track to achieve our 2016 and mid-term targets.“

 

¹2015 before special items²Net income attributable to shareholders of Fresenius SE & Co. KGaA

Group guidance for 2016 confirmed
Fresenius confirms its guidance for 2016. Sales are expected to increase by 6% to 8% in constant currency. Net income^1,2, is expected to grow by 8% to 12% in constant currency.

The net debt/EBITDA³ ratio is expected to be approximately 2.5 at the end of 2016.

¹Net income attributable to shareholders of Fresenius SE & Co. KGaA²2015 before special items³Calculated at FY average exchange rates for both net debt and EBITDA; excluding potential acquisitions

 

7% sales growth in constant currency
Group sales increased by 7% (7% in constant currency) to €6,914 million (Q1/2015: €6,483 million). Organic sales growth was 7%. Acquisitions contributed 1% and divestitures reduced sales by 1%.

Group sales by region:

23% net income¹ growth in constant currency
Group EBITDA² increased by 11% (10% in constant currency) to €1,237 million (Q1/2015: €1,115 million). Group EBIT² increased by 13% (11% in constant currency) to €959 million (Q1/2015: €851 million). The EBIT margin² increased to 13.9% (Q1/2015: 13.1%).

Group net interest decreased to -€152 million (Q1/2015: -€165 million), mainly due to more favorable financing terms and lower net debt.

The Group tax rate (before special items) decreased to 28.4% (Q1/2015: 30.2%), mainly due to a lower tax rate at Fresenius Medical Care.

Noncontrolling interest increased to €216 million (Q1/2015: €187 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income^1,2, increased by 24% (23% in constant currency) to €362 million (Q1/2015: €292 million). Earnings per share^1,2 increased by 22% (22% in constant currency) to €0.66 (Q1/2015: €0.54).

 

¹Net income attributable to shareholders of Fresenius SE & Co. KGaA²2015 before special items³Calculated at FY average exchange rates for both net debt and EBITDA; excluding potential acquisitions

Continued investment in growth
Spending on property, plant and equipment was €313 million (Q1/2015: €273 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €204 million (Q1/2015: €104 million).

Cash flow development
Operating cash flow decreased by 37% to €334 million (Q1/2015: €531 million) with a margin of 4.8% (Q1/2015: 8.2%). The decrease was mainly due to an adjustment in invoicing within the quarter and the timing of cash payroll payments at Fresenius Medical Care North America. Fresenius Medical Care expects that these effects will have no meaningful impact on the full year 2016 cash flow.

Free cash flow before acquisitions and dividends decreased to €2 million (Q1/2015: €258 million). Free cash flow after acquisitions and dividends was -€241 million (Q1/2015: €256 million).

Solid balance sheet structure
The Group’s total assets decreased by 1% (increased 1% in constant currency) to €42,445 million (Dec. 31, 2015: €42,959 million). Current assets grew by 1% (3% in constant currency) to €10,584 million (Dec. 31, 2015: €10,479 million). Non-current assets decreased by 2% (increased 1% in constant currency) to €31,861 million (Dec. 31, 2015: € 32,480 million).

Total shareholders’ equity was virtually unchanged at €18,009 million (Dec. 31, 2015: €18,003 million). In constant currency, it increased by 3%. The equity ratio increased to 42.4% (Dec. 31, 2015: 41.9%).

Group debt decreased by 1% (increased 1% in constant currency) to €14,549 million (Dec. 31, 2015: € 14,769 million). As of March 31, 2016, the net debt/EBITDA ratio was 2.67¹ (Dec. 31, 2015: 2.68¹).

¹2015 before special items; at LTM average exchange rates for both net debt and EBITDA

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 March 31, 2016, Fresenius Medical Care was treating 294,043 patients in 3,432 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
• Strong sales and EBIT growth in North America
• 2016 outlook confirmed

Sales increased by 6% (9% in constant currency) to US$4,205 million (Q1/2015: US$3,960 million). Organic sales growth was 7%. Acquisitions contributed 2%. Currency translation effects reduced sales by 3%.

Health Care services sales (dialysis services and care coordination) increased by 7% (9% in constant currency) to US$3,414 million (Q1/2015: US$3,182 million). Dialysis product sales increased by 2% (6% in constant currency) to US$791 million (Q1/2015: US$778 million).

In North America, sales increased by 10% to US$3,044 million (Q1/2015: US$2,771 million). Health Care services sales grew by 10% to US$2,832 million (Q1/2015: US$2,571 million). Dialysis product sales increased by 6% to US$212 million (Q1/2015: US$200 million).

Sales outside North America decreased by 2% (increased by 7% in constant currency) to US$1,158 million (Q1/2015: US$1,180 million). Health Care services sales decreased by 5% (increased by 6% in constant currency) to US$582 million (Q1/2015: US$611 million). Dialysis product sales increased by 1% (8% in constant currency) to US$576 million (Q1/2015: US$569 million).

EBIT increased by 7% (8% in constant currency) to US$540 million (Q1/2015: US$504 million). The EBIT margin was 12.8% (Q1/2015: 12.7%).
Net income¹ increased by 9% (8% in constant currency) to US$228 million (Q1/2015: US$210 million).

Operating cash flow decreased by 60% to US$180 million (Q1/2015: US$447 million). The cash flow margin was 4.3% (Q1/2015: 11.3%). The decrease was mainly due to an adjustment in invoicing within the quarter and the timing of cash payroll payments at Fresenius Medical Care North America. Fresenius Medical Care expects that these effects will have no meaningful impact on the full year 2016 cash flow.

Fresenius Medical Care confirms its outlook for 2016. The company expects sales to grow by 7% to 10% in constant currency and net income¹ is expected to increase by 15% to 20%² in 2016.

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

 

¹Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
²2015 before GranuFlo®/NaturaLyte® settlement costs (-US$37 million after tax) and before acquisitions (US$9 million after tax); hence the basis for expected net income growth is US$1,057 million.
 

Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

 

• 10% organic sales growth in Q1
• 19% constant currency EBIT¹ growth in Q1
• 2016 outlook confirmed

Sales increased by 5% (8% in constant currency) to €1,470 million (Q1/2015: €1,394 million). Organic sales growth was 10%. Divestitures and currency translation effects reduced sales by 2% and 3% respectively.

Sales in Europe decreased by 1% (increased organically by 1%) to €512 million (Q1/2015: €518 million), mainly due to the divestment of the German oncology compounding business in February 2015. Sales in North America increased by 22% (organic growth: 20%) to €567 million (Q1/2015: €473 million). North American sales growth was mainly driven by persisting IV drug shortages as well as new product launches. Adverse currency translation effects decreased sales in Asia-Pacific by 5% (increased organically by 7%) to €254 million (Q1/2015: €268 million) and in Latin America/Africa by 5% (increased organically by 21%) to €128 million (Q1/2015: €135 million).

EBIT¹ increased by 20% (19% in constant currency) to €309 million (Q1/2015: €257 million). The EBIT margin¹ improved to 21.0% (Q1/2015: 18.5%).

Net income² increased by 28% (26% in constant currency) to €179 million (Q1/2015: €140 million).

Based on the excellent net income development operating cash flow increased by 49% to €124 million (Q1/2015: €83 million) with a margin of 8.4% (Q1/2015: 6.0%).

Fresenius Kabi confirms its outlook for 2016 and projects low single-digit organic sales growth. EBIT¹ in constant currency is expected to be roughly flat compared with 2015.

¹2015 before special items²Net income attributable to shareholders of Fresenius Kabi AG; 2015 before special items

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.7 million patients per year, thereof approximately 1.3 million inpatients, and operates more than 34,000 beds.

• 3% organic sales growth
• 50 bps EBIT margin¹ increase to 11.1%
• 2016 outlook confirmed

Sales increased by 3% to €1,435 million (Q1/2015: €1,391 million). Organic sales growth was 3%. Acquisitions and divestitures had no material effect.

EBIT¹ grew by 8% to €159 million (Q1/2015: €147 million). The EBIT margin¹ increased to 11.1% (Q1/2015: 10.6%).

Net income² increased by 16% to €124 million (Q1/2015: €107 million).

Fresenius Helios confirms its outlook for 2016 and projects organic sales growth of 3% to 5%. EBIT is expected to increase to €670 to €700 million.

 

¹2015 before special items²Net income attributable to shareholders of HELIOS Kliniken GmbH; 2015 before special items

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

• Project and service business contributed equally to 6% organic sales growth
• Strong order intake of €237 million
• 2016 outlook confirmed

Sales increased by 5% (5% in constant currency) to €218 million (Q1/2015: €208 million). Organic sales growth was 6%. Sales in the project business increased by 6% to €85 million (Q1/2015: €80 million). Sales in the service business grew by 4% to €133 million (Q1/2015: €128 million).

EBIT remained unchanged with €7 million (Q1/2015: €7 million). The EBIT margin was 3.2% (Q1/2015: 3.4%).

Net income¹ grew by 25% to €5 million (Q1/2015: €4 million).

Order intake increased to €237 million (Q1/2015: €192 million). As of March 31, 2016, order backlog grew to €1,803 million (December 31, 2015: €1,650 million).

Fresenius Vamed confirms its outlook for 2016 and expects organic sales growth in the range of 5% to 10% and EBIT growth of 5% to 10%.

¹Net income attributable to shareholders of VAMED AG

Conference Call
As part of the publication of the results for Q1/2016, a conference call will be held on May 3, 2016 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. Following the call, a replay will be available on our website.

 

 

 

 

Fresenius Helios completed today its acquisition of a 519-bed municipal hospital in the German state of North Rhine-Westphalia. Located in the city of Velbert, the hospital had 2015 sales of about €69 million. The acquisition, which was announced in February, will be accretive to Fresenius Group earnings from this year.