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The Supervisory Board of Fresenius Management SE has unanimously appointed Stephan Sturm (52) as Chief Executive Officer of Fresenius as of July 1, 2016. Stephan Sturm succeeds Ulf Mark Schneider (50), who has decided to leave the company effective June 30, 2016 to pursue another opportunity.
Ulf Mark Schneider assumed his current position as CEO of Fresenius on May 28, 2003. Under his leadership, the company has seen significant growth. Group sales have increased fourfold and net income rose more than twelvefold.
Gerd Krick, Chairman of Fresenius Management SE’s Supervisory Board, commented: “On behalf of the Supervisory Board I would like to thank Ulf Mark Schneider for his extraordinary leadership and tremendous accomplishments over the past 13 years. He has led Fresenius through a period of exciting and sustainable growth and has truly transformed the company. While we regret his departure we wish him the very best for his future endeavors.”
Stephan Sturm has served as Fresenius Group’s Chief Financial Officer since January 1, 2005. In this capacity he has made significant contributions to develop Fresenius into a leading global healthcare group. He has played a key role in major acquisitions. His innovative and highly successful financing activities facilitated the company’s strong and sustainable growth. Stephan Sturm has also assured the company’s overall efficiency and profitability during this major expansion.
Gerd Krick said: “We are delighted to appoint Stephan Sturm as our new CEO. The Supervisory Board could not have wished for a better qualified and experienced leader to succeed Ulf Mark Schneider in this role. Stephan Sturm has been a member of the Fresenius Management Board for more than 11 years. He has a highly successful track-record as the Group’s CFO and has made major contributions towards executing our successful growth strategy. The appointment of Stephan Sturm as the Fresenius Group’s new CEO demonstrates continuity at the helm of the company. He has the full support of the Supervisory Board and we look forward to working with him as we continue to grow our business.”
Stephan Sturm said: “I am approaching my new role with both excitement and respect. The future of Fresenius continues to look bright. I am fully committed to meeting our targets, executing on our growth strategy and contributing to affordable high-quality healthcare around the globe.”
Fresenius confirms its guidance for 2016. Sales are expected to increase by 6% to 8% in constant currency. Net income* is expected to grow by 8% to 12% in constant currency. The company also confirms its mid-term outlook: For 2019, Group sales are expected to reach €36 billion to €40 billion**. Group net income*** is expected to increase to €2.0 billion to €2.25 billion**.
* Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items
** At comparable exchange rates; including small and mid-size acquisitions
*** Net income attributable to shareholders of Fresenius SE & Co. KGaA
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
The Supervisory Board of Fresenius Management SE has unanimously appointed Stephan Sturm (52) as Chief Executive Officer of Fresenius as of July 1, 2016. Stephan Sturm succeeds Ulf Mark Schneider (50), who has decided to leave the company effective June 30, 2016 to pursue another opportunity.
Ulf Mark Schneider assumed his current position as CEO of Fresenius on May 28, 2003. Under his leadership, the company has seen significant growth. Group sales have increased fourfold and net income rose more than twelvefold.
Gerd Krick, Chairman of Fresenius Management SE’s Supervisory Board, commented: “On behalf of the Supervisory Board I would like to thank Ulf Mark Schneider for his extraordinary leadership and tremendous accomplishments over the past 13 years. He has led Fresenius through a period of exciting and sustainable growth and has truly transformed the company. While we regret his departure we wish him the very best for his future endeavors.”
Stephan Sturm has served as Fresenius Group’s Chief Financial Officer since January 1, 2005. In this capacity he has made significant contributions to develop Fresenius into a leading global healthcare group. He has played a key role in major acquisitions. His innovative and highly successful financing activities facilitated the company’s strong and sustainable growth. Stephan Sturm has also assured the company’s overall efficiency and profitability during this major expansion.
Gerd Krick said: “We are delighted to appoint Stephan Sturm as our new CEO. The Supervisory Board could not have wished for a better qualified and experienced leader to succeed Ulf Mark Schneider in this role. Stephan Sturm has been a member of the Fresenius Management Board for more than 11 years. He has a highly successful track-record as the Group’s CFO and has made major contributions towards executing our successful growth strategy. The appointment of Stephan Sturm as the Fresenius Group’s new CEO demonstrates continuity at the helm of the company. He has the full support of the Supervisory Board and we look forward to working with him as we continue to grow our business.”
Stephan Sturm said: “I am approaching my new role with both excitement and respect. The future of Fresenius continues to look bright. I am fully committed to meeting our targets, executing on our growth strategy and contributing to affordable high-quality healthcare around the globe.”
Fresenius confirms its guidance for 2016. Sales are expected to increase by 6% to 8% in constant currency. Net income* is expected to grow by 8% to 12% in constant currency. The company also confirms its mid-term outlook: For 2019, Group sales are expected to reach €36 billion to €40 billion**. Group net income*** is expected to increase to €2.0 billion to €2.25 billion**.
* Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items
** At comparable exchange rates; including small and mid-size acquisitions
*** Net income attributable to shareholders of Fresenius SE & Co. KGaA
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Report on Full Year 2022 and the new strategy of Fresenius – press conference in Bad Homburg on February 22, 2023 (English overdubs)
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.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
For a detailed overview of special items please see the reconciliation table on page 13 of the pfd file.
Q1/2016:
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 income1,2, 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 income1,2, increased by 24% (23% in constant currency) to €362 million (Q1/2015: €292 million). Earnings per share1,2 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.
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.
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.
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.
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.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
For a detailed overview of special items please see the reconciliation table on page 13 of the pfd file.
Q1/2016:
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 income1,2, 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 income1,2, increased by 24% (23% in constant currency) to €362 million (Q1/2015: €292 million). Earnings per share1,2 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.
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.
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.
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.
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.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
At its meeting today, the Supervisory Board of Fresenius SE & Co. KGaA nominated the following candidates for election to the Supervisory Board by the Annual General Meeting on May 13, 2016:
If elected by the Annual General Meeting, Prof. Dr. med. Iris Löw-Friedrich und Ms. Hauke Stars will join the Supervisory Board as new shareholder representatives. Prof. Dr. Roland Berger, a member since 2008, and Gerhard Roggemann, a member from 1998 to 2004 and again since 2011, will leave the Supervisory Board at the close of the Annual General Meeting.
All candidates are nominated for a five-year term, ending with the close of the 2021 Annual General Meeting. If re-elected to the Supervisory Board, Dr. Gerd Krick will be proposed for election as Chairman.
The Supervisory Board of Fresenius SE & Co. KGaA consists of 12 members. The six employee representatives are elected by the European works council.
Dr. Gerd Krick, Michael Diekmann and Klaus-Peter Müller, as well as Dr. Dieter Schenk, a lawyer and tax consultant, and Dr. Karl Schneider, former Spokesman of the Management Board of Südzucker AG, are nominated for re-election to the Supervisory Board of Fresenius Management SE. Effective on May 13, 2016, Prof. Dr. Roland Berger will leave the Supervisory Board of Fresenius Management SE. Dr. Kurt Bock, Chief Executive Officer of BASF SE, is nominated to join the Supervisory Board of Fresenius Management SE.
As the general partner, Fresenius Management SE manages Fresenius SE & Co. KGaA. The Supervisory Board of Fresenius Management SE, which consists of six members and is not subject to employee co-determination, appoints the Management Board of Fresenius Management SE.
The invitation and complete agenda for the Annual General Meeting of Fresenius SE & Co. KGaA, to be held on May 13, 2016, will be published on March 31, 2016.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
At its meeting today, the Supervisory Board of Fresenius SE & Co. KGaA nominated the following candidates for election to the Supervisory Board by the Annual General Meeting on May 13, 2016:
If elected by the Annual General Meeting, Prof. Dr. med. Iris Löw-Friedrich und Ms. Hauke Stars will join the Supervisory Board as new shareholder representatives. Prof. Dr. Roland Berger, a member since 2008, and Gerhard Roggemann, a member from 1998 to 2004 and again since 2011, will leave the Supervisory Board at the close of the Annual General Meeting.
All candidates are nominated for a five-year term, ending with the close of the 2021 Annual General Meeting. If re-elected to the Supervisory Board, Dr. Gerd Krick will be proposed for election as Chairman.
The Supervisory Board of Fresenius SE & Co. KGaA consists of 12 members. The six employee representatives are elected by the European works council.
Dr. Gerd Krick, Michael Diekmann and Klaus-Peter Müller, as well as Dr. Dieter Schenk, a lawyer and tax consultant, and Dr. Karl Schneider, former Spokesman of the Management Board of Südzucker AG, are nominated for re-election to the Supervisory Board of Fresenius Management SE. Effective on May 13, 2016, Prof. Dr. Roland Berger will leave the Supervisory Board of Fresenius Management SE. Dr. Kurt Bock, Chief Executive Officer of BASF SE, is nominated to join the Supervisory Board of Fresenius Management SE.
As the general partner, Fresenius Management SE manages Fresenius SE & Co. KGaA. The Supervisory Board of Fresenius Management SE, which consists of six members and is not subject to employee co-determination, appoints the Management Board of Fresenius Management SE.
The invitation and complete agenda for the Annual General Meeting of Fresenius SE & Co. KGaA, to be held on May 13, 2016, will be published on March 31, 2016.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Fresenius expects to set new sales and earnings records in 2015. Ulf Mark Schneider, CEO of Fresenius, confirmed the company’s growth targets at the Annual General Meeting in Frankfurt today. The global healthcare group forecasts sales growth of 7 to 10 percent and an increase in net income of 13 to 16 percent this year, both in constant currency. After a strong first quarter, Fresenius had raised its earnings guidance in April.
“We are very confident that our steady, strong growth will continue,” Schneider said. “The demand for healthcare continues to rise around the world. In industrialized countries, it is driven primarily by increasing life expectancies and health awareness. Globally, more people are gaining access to high-quality healthcare. Many of the biggest emerging market countries are rolling out comprehensive, nationwide healthcare coverage.”
Shareholders voted with a majority of 88.67% to approve the 22nd consecutive dividend increase proposed by the general partner and the Supervisory Board. The dividend was raised by 6% to €0.44 per share.
The Annual General Meeting, with a majority of 98.23%, elected Michael Diekmann as a new member of the Supervisory Board of Fresenius SE & Co. KGaA. Diekmann, who was CEO of Allianz SE from 2003 until this year, will seek election as Deputy Chairman. The new election was necessary following the death of Dr. Gerhard Rupprecht, Supervisory Board’s Deputy Chairman, in 2014.
Shareholder majorities of 99.61 and 97.99%, respectively, approved the actions of the Management and Supervisory Boards in 2014.
At the Annual General Meeting, 73.97% of the subscribed capital was represented.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
If no timeframe is specified, information refers to fiscal year 2015.
For a detailed overview of special items please see the reconciliation tables on pages 16-17 in the pdf file of this Investor News
Fiscal year 2015:
Q4/2015:
Group guidance 2016:
Targets 20193:
Ulf Mark Schneider, CEO of Fresenius, said: "2015 was a remarkable year for Fresenius with double-digit sales and earnings growth. Patient focus and an uncompromising commitment to product and service quality are key to our success. Our growth story continues. We see significant opportunities around the globe for the company’s strong and balanced healthcare portfolio, and this confidence is reflected in our new 2019 Group targets."
1 2015 before special items but including GranuFlo®/NaturaLyte® settlement costs ( €54 million before tax; €10 million after tax)2 Net income attributable to shareholders of Fresenius SE & Co. KGaA3 At comparable exchange rates; includes small and mid-size acquisitions
Positive Group guidance for 2016
For 2016, Fresenius projects sales growth of 6% to 8% in constant currency. Net income1 is expected to grow by 8% to 12% in constant currency.
The net debt/EBITDA2 ratio is expected to be approximately 2.5 at the end of 2016.
New stretch targets for 20193
For 2019, Group sales are expected to reach €36 billion to €40 billion. Group net income4 is expected to increase to €2.0 billion to €2.25 billion.
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items but including GranuFlo®/NaturaLyte® settlement costs2 Calculated at expected annual average exchange rates, for both net debt and EBITDA; without large unannounced acquisitions3 At comparable exchange rates; including small and mid-size acquisitions4 Net income attributable to shareholders of Fresenius SE & Co. KGaA
23rd consecutive dividend increase proposed
Based on the strong financial results, the Management Board will propose to the Supervisory Board a dividend increase of 25% to €0.55 per share (2014: €0.44). The total dividend distribution is expected to be €300 million.
9% sales growth in constant currency – fully in line with guidance
Group sales increased by 19% (9% in constant currency) to €27,626 million (2014: €23,231 million). Organic sales growth was 6%. Acquisitions contributed 4% and divestitures reduced sales by 1%. Positive currency translation effects (10%) were mainly driven by the Euro’s depreciation against the U.S. dollar. In Q4/2015, Group sales increased by 11% (5% in constant currency) to €7,257 million (Q4/2014: €6,520 million). Organic sales growth was 5%. Acquisitions contributed 1%, while divestitures reduced sales by 1%.
Group sales by region:
21% net income1,2 growth in constant currency – fully in line with guidance
Group EBITDA2 increased by 24% (12% in constant currency) to €5,073 million (2014: €4,095 million). Group EBIT2 increased by 25% (13% in constant currency) to €3,958 million (2014: €3,158 million). The EBIT margin2 increased to 14.3% (2014: 13.6%).
In Q4/2015, Group EBIT2 increased by 19% (10% in constant currency) to €1,109 million (Q4/2014: €935 million), the EBIT margin2 improved to 15.3% (Q4/2014: 14.3%).
Group net interest increased slightly to -€613 million (2014: -€602 million). More favourable financing terms and interest rate savings on lower debt were more than offset by currency translation effects. In Q4/2015, Group net interest of -€137 million was below the prior-year level (Q4/2014: -€171 million). Lower negative currency translation effects in Q4/2015 were more than offset by interest savings on lower debt.
The Group tax rate2 increased to 29.4% (2014: 28.4%), mainly due to the higher U.S. share of earnings before tax.
Noncontrolling interest was €939 million (2014: €745 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Group net income1,2 increased by 31% (21% in constant currency) to €1,423 million (2014: €1,086 million). Earnings per share1,2 increased by 30% (20% in constant currency) to €2.61 (2014: €2.01). In Q4/2015, Group net income1,2 increased by 30% (24% in constant currency) to €414 million (Q4/2014: €318 million). Earnings per share1,2 increased by 27% (22% in constant currency) to €0.75 (Q4/2014: €0.59).
Group net income1 including special items increased by 27% (17% in constant currency) to €1,358 million (2014: €1,067 million). Earnings per share1 including special items increased by 27% (16% in constant currency) to €2.50 (2014: € 1.97). In Q4/2015, Group net income1 including special items increased by 40% (32% in constant currency) to €359 million (Q4/2014: €257 million). Earnings per share1 including special items increased by 40% (32% in constant currency) to €0.66 (Q4/2014: €0.47).
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA2 Before special items but including GranuFlo®/NaturaLyte® settlement costs ( €54 million before tax; €10 million after tax)
Continued investment in growth
Spending on property, plant and equipment was €1,512 million (2014: €1,345 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. This corresponds to 5.5% of sales.
Total acquisition spending was €517 million (2014: €2,450 million).
Excellent cash flow development
Operating cash flow increased by 29% to €3,327 million (2014: €2,585 million) with a margin of 12.0% (2014: 11.1%). The Euro’s depreciation against the U.S. dollar positively influenced 2015 operating cash flow, while 2014 operating cash flow was reduced by the US$1151 million payment for the W.R. Grace bankruptcy settlement. The excellent cash flow margin demonstrates the underlying strength of cash flow generation across all business segments. Operating cash flow in Q4/2015 increased by 32% to €1,176 million (Q4/2014: €890 million) with a margin of 16.2% (Q4/2014: 13.7%).
Free cash flow before acquisitions and dividends increased by 48% to €1,865 million (2014: €1,262 million), with a margin of 6.8% (2014: 5.4%). Free cash flow after acquisitions and dividends improved to €1,194 million (2014: €1,348 million).
1 See Annual Report 2014, page 152 f.
Solid balance sheet structure1
The Group’s total assets increased by 9% (3% in constant currency) to €43,170 million (Dec. 31, 2014: €39,788 million). This increase is mainly attributable to currency translation effects. Current assets grew by 9% (6% in constant currency) to €10,917 million (Dec. 31, 2014: €10,012 million). Non-current assets increased by 8% (2% in constant currency) to €32,253 million (Dec. 31, 2014: € 29,776 million).
Total shareholders’ equity increased by 16% (11% in constant currency) to €18,003 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 41.7% (Dec. 31, 2014: 38.9%).
Group debt decreased by 4% (-9% in constant currency) to €14,769 million (Dec. 31, 2014: € 15,345 million). As of December 31, 2015, the net debt/EBITDA ratio was 2.682. As of December 31, 2014, the ratio was 3.243. EBITDA growth as well as the net debt reduction by application of meaningful free cash flow have equally contributed to this substantial decrease of the ratio.
1 2014 adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)2 Before special items; at LTM average exchange rates for both net debt and EBITDA3 Pro forma acquisitions; 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 December 31, 2015, Fresenius Medical Care was treating 294,381 patients in 3,418 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.
6% sales growth, 2% net income growth2 before GranuFlo®/NaturaLyte® settlement costs – fully in line with 2015 outlook
Sales increased by 6% (11% in constant currency) to US$16,738 million (2014: US$15,832 million). Organic sales growth was 6%. Acquisitions contributed 6%, while divestitures reduced sales by 1%. Currency translation effects reduced sales by 5%. In Q4/2015, sales increased by 1% (5% in constant currency) to US$4,348 million (Q4/2014: US$4,320 million).
Health Care services sales (dialysis services and care coordination) increased by 9% (13% in constant currency) to US$13,392 million (2014: US$12,250 million). Dialysis product sales decreased by 7% (increased by 4% in constant currency) to US$3,346 million (2014: US$3,582 million).
In North America, sales increased by 13% to US$11,813 million (2014: US$10,500 million). Health Care services sales grew by 13% to US$10,932 million (2014: US$9,655 million). Dialysis product sales increased by 4% to US$881 million (2014: US$845 million). Sales outside North America decreased by 7% (increased by 9% in constant currency) to US$4,897 million (2014: US$5,265 million). Health Care services sales decreased by 5% (increased by 12% in constant currency) to US$2,459 million (2014: US$2,595 million). Dialysis product sales decreased by 9% (increased by 6% in constant currency) to US$2,437 million (2014: US$2,670 million).
EBIT increased by 3% (8% in constant currency) to US$2,327 million (2014: US$2,255 million). The EBIT margin was 13.9% (2014: 14.2%). Based on the agreement in principle to resolve the GranuFlo®/NaturaLyte® product liability litigation, Fresenius Medical Care expects a pre-tax financial impact of US$60 million from the settlement. Adjusted for one-time items4, EBIT increased by 5% to US$2,388 million. In Q4/2015, EBIT remained roughly flat at US$662 million (Q4/2014: US$663 million). In constant currency, EBIT increased by 3%. The EBIT margin was 15.2% (Q4/2014: 15.4%). EBIT excluding one-time items5 increased by 5% to US$704 million.
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA excluding one-time items4 increased by 2% to US$1,082 million. Net income including one-time items decreased by 2% (increased by 3% in constant currency) to US$1,029 million (2014: US$1,045 million). Net income attributable to non-controlling interest increased by 32% to US$284 million, mainly due to the strong earnings development in North America. In Q4/2015, net income excluding one-time items5 increased by 2% to US$347 million. Net income including one-time items decreased by 6% (-3% in constant currency) to US$317 million (Q4/2014: US$335 million).
Operating cash flow increased by 5% to US$1,960 million (2014: US$1,861 million). Operating cash flow in the prior-year period was reduced by the US$115 million6 payment for the W.R. Grace bankruptcy settlement. The cash flow margin was 11.7% (2014: 11.8%). In Q4/2015, operating cash flow reached an excellent US$548 million (Q4/2014: US$588 million) at a margin of 12.6% (Q4/2014: 13.6%).
Fresenius Medical Care confirms its outlook for 2016. The company expects sales to grow by 7% to 10% in constant currency and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 15% to 20%3 in 2016.
The outlook is based on current exchange rates. Savings from the global efficiency program are included, while earnings contributions from acquisitions 2015/2016 are not.
For further information, please see Fresenius Medical Care’s Press Release at www.freseniusmedicalcare.com.
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 2015 before GranuFlo®/NaturaLyte® settlement costs (-US$37 million after tax), before divestiture of dialysis business in Venezuela (-US$27 million after tax) and European pharmaceutical business (US$11 million after tax); 2014 before closing of manufacturing plant (-US$13 million after tax)3 2015 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 are US$1,057 million.4 2015 before GranuFlo®/NaturaLyte® settlement costs (-US$60 million before tax; -US$37 million after tax), before divestiture of dialysis business in Venezuela (-US$26 million before tax; -US$27 million after tax) and European pharmaceutical business (US$25 million before tax; US$11 million after tax); 2014 before closing of manufacturing plant (-US$16 million before tax; -US$13 million after tax)5 Q4/2015 before GranuFlo®/NaturaLyte® settlement costs (-US$60 million before tax; -US$37 million after tax), before divestiture of European pharmaceutical business (US$18 million before tax; US$7 million after tax); 2014 before closing of manufacturing plant (-US$6 million before tax; -US$6 million after tax)6 See Annual Report 2014, page 152 f.
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.
Sales increased by 16% (7% in constant currency) to €5,950 million (2014: €5,146 million). Organic sales growth was 8%. Acquisitions contributed 1% while divestitures reduced sales by 2%. Positive currency translation effects (9%) were mainly driven by the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q4/2015, sales increased by 10% (5% in constant currency) to €1,519 million (Q4/2014: €1,386 million). Organic sales growth was 8%.
Sales in Europe grew by 1% (organic growth: 4%) to €2,123 million (2014: €2,102 million). Sales in North America increased by 37% (organic growth: 16%) to €2,093 million (2014: €1,531 million). North American sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 16% (organic growth: 5%) to €1,141 million (2014: €987 million). Sales in Latin America/Africa grew by 13% (organic growth: 13%) to €593 million (2014: €526 million).
EBIT1 increased by 36% (21% in constant currency) to €1,189 million (2014: €873 million). The EBIT margin1 improved to 20.0% (2014: 17.0%). In Q4/2015, EBIT1 increased by 33% (26% in constant currency) to €317 million (Q4/2014: €239 million). The EBIT margin1 increased to 20.9% (Q4/2014: 17.2%). The EBIT margin was positively influenced by the Euro’s depreciation against the U.S. dollar.
Net income2 increased by 43% (27% in constant currency) to €669 million (2014: €468 million). In Q4/2015, net income2 increased by 45% (38% in constant currency) to €190 million (Q4/2014: €131 million).
Operating cash flow increased by 42% to €913 million (2014: €641 million) with a margin of 15.3% (2014: 12.5%). In Q4/2015, operating cash flow increased by 55% to €324 million (Q4/2014: €209 million) with a margin of 21.3% (Q4/2014: 15.1%).
Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €105 million before tax were incurred in 2015. These costs are reported in the Group segment Corporate/Other. The program led to initial cost savings of approximately €10 million in 2015. The targeted savings run-rate of approximately €40 million p.a. is expected by 2018.
For 2016, Fresenius Kabi expects to achieve low single-digit organic sales growth. EBIT3 in constant currency is expected to be roughly flat.
1 Before special items2 Net income attributable to shareholders of Fresenius Kabi AG; before special items3 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.
Sales increased by 6% to €5,578 million (2014: €5,244 million). Organic sales growth was 3%. Acquisitions contributed 4%, while divestitures reduced sales by 1%. In Q4/2015, sales increased by 4% to €1,411 million (Q4/2014: €1,361 million), organic sales growth was 4%.
EBIT1 grew by 16% to €640 million (2014: €553 million). The EBIT margin1 increased to 11.5% (2014: 10.5%). The increase is attributable both to the successful integration of the acquired hospitals from Rhön-Klinikum AG and to continuous improvements of the established business. In Q4/2015, EBIT1 increased by 8% to €168 million (Q4/2014: €156 million) with a margin1 of 11.9% (Q4/2014: 11.5%).
Net income2 increased by 21% to €483 million (2014: €400 million). In Q4/2015, net income2 increased by 15% to €131 million (Q4/2014: €114 million).
Sales of the established hospitals grew by 3% to €5,379 million (2014: €5,222 million). EBIT1 increased by 15% to €631 million (2014: €551 million). The EBIT margin1 increased to 11.7% (2014: 10.6%). Sales of the newly acquired hospitals (consolidation ≤1 year) were €199 million. EBIT1 was €9 million with a margin of 4.5%.
The integration of the hospitals acquired from Rhön-Klinikum AG remains well on track. Integration costs in 2015 were €12 million (Q4/2015: €0 million) taking the total to date to €63 million. Fresenius Helios does not expect any further integration costs. Amount (€85 million p.a.) and timing (spring 2016) of targeted near-term cost synergies are confirmed.
For 2016, Fresenius Helios projects organic sales growth of 3% to 5%. EBIT is expected to increase to €670 to €700 million.
1 Before special items2 Net income attributable to shareholders of HELIOS Kliniken GmbH; 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.
Sales increased by 7% (6% in constant currency) to €1,118 million (2014: €1,042 million). Organic sales growth was 6%. Sales in the project business increased by 3% to €575 million (2014: €558 million). Sales in the service business grew by 12% to €543 million (2014: €484 million). In Q4/2015, sales remained unchanged at €387 million compared to the prior-year. Organic sales growth was 1%.
EBIT grew by 8% to €64 million (2014: €59 million). The EBIT margin remained unchanged at 5.7%. In Q4/2015, EBIT increased by 6% to €34 million (Q4/2014: €32 million). The EBIT margin increased by 50 bps to 8.8%.
Net income1 grew by 7% to €44 million (2014: €41 million). In Q4/2015, net income1 increased by 4% to €24 million (Q4/2014: €23 million).
Order intake increased to €904 million (2014: €840 million), reaching an all-time high. As of December 31, 2015, order backlog was €1,650 million (Dec. 31, 2014: €1,398 million).
For 2016, Fresenius Vamed expects organic sales growth in the range of 5% to 10% and EBIT growth of 5% to 10%.
1 Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for fiscal year 2015, a conference call will be held on February 24, 2016 at 2 p.m. CET (8 a.m. EST). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com/investors. Following the call, a replay will be available on our website.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
