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.

Chloramphenicol Sodium Succinate Injection, an antibiotic, expands Fresenius Kabi's anti-infective portfolio.

Linezolid injection further expands the Fresenius Kabi anti-infective portfolio. It is available in the company's proprietary Freeflex® bag.

University Hospital of Munich has joined the growing “Wir für Gesundheit” hospital network, becoming the first university clinic to accept PlusCard. Through its supplementary company health insurance, PlusCard offers employers coverage options that provide employees with different levels of service and comfort. “Wir für Gesundheit” was formed by hospital operators Asklepios, Fresenius Helios and Rhön, and has more than 120 partner hospitals in Germany committed to quality standards far higher than those required by law.

Vamed is realizing the new main building of University Hospital Schleswig-Holstein in Kiel, Germany as part of a public-private partnership. The company will also be responsible for the long-term technical management of the building, which will house more than 600 beds and 22 operating rooms. The work is part of a comprehensive construction and modernization project at the hospital. Completion is scheduled for 2019.