BARCLAYS GLOBAL HEALTHCARE CONFERENCE - March 10, 2021
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BARCLAYS GLOBAL
HEALTHCARE CONFERENCE
March 10, 2021
© Copyright
Safe harbor statement: This presentation includes certain forward-looking statements within the
meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Act of 1934, as amended. Forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy or might not even be
anticipated. The Company has based these forward-looking statements on current estimates and
assumptions which we believe are reasonable and which are made to the best of our knowledge.
Actual results could differ materially from those included in the forward-looking statements due to
various risk factors and uncertainties, including changes in business, economic or competitive
conditions, changes in reimbursement, regulatory compliance issues, regulatory reforms, foreign
exchange rate fluctuations, uncertainties in litigation or investigative proceedings, cyber security
issues and the availability of financing. Given these uncertainties, readers should not put undue
reliance on any forward-looking statements. These and other risks and uncertainties are discussed
in detail in Fresenius Medical Care AG & Co. KGaA’s (FMC AG & Co. KGaA) Annual Report on Form
20-F under the heading “Forward-Looking Statements” and under the headings in that report
referred to therein, and in FMC AG & Co. KGaA’s other reports filed with the Securities and
Exchange Commission (SEC) and the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).
Forward-looking statements represent estimates and assumptions only as of the date that they
were made. The information contained in this presentation is subject to change without notice and
the company does not undertake any duty to update the forward-looking statements, and the
estimates and assumptions associated with them, except to the extent required by applicable law
and regulations.
If not mentioned differently the term net income after minorities refers to the net income
attributable to the shareholders of Fresenius Medical Care AG Co. KGaA. The term EMEA refers to
the region Europe, Middle East and Africa. Amounts are in Euro if not mentioned otherwise.
© Copyright
1 AT A GLACE
2 STRATEGY
AGENDA 3 MEDICAL UPDATE
4 BUSINESS UPDATE
5 FINANCIALS & OUTLOOK
FY 2020 | QUALITY ON A CONSISTENTLY HIGH LEVEL
+2% Clinics +0% Patients
4,092 346,553
Quality remains
+3% Treatments
on a consistently
53,575,255 high level
As of December 31, 2020
Company Presentation March, 2020 Page 4
FY 2020 | €17.9BN REVENUE
NORTH AMERICA EMEA
Operating Operating
Revenue Patients Clinics Revenue Patients Clinics
Income Income
70% 15%
€12.5bn €2,120m ~210,300 ~2,640 of total €2.8bn €412m ~66,000 ~800 of total
revenue revenue
+4%cc +20%cc 0% +2% +5%cc (6)%cc 0% +3%
LATIN AMERICA ASIA-PACIFIC
Operating Operating
Revenue Patients Clinics
Income 4% Revenue
Income
Patients Clinics 11%
of total of total
€0.7bn €(157)m ~37,200 ~250 revenue €1.9bn €344m ~33,100 ~400 revenue
+21%cc n.a. +7% +6% +3%cc +5%cc 0% 0%
cc = at constant currency
Segment revenue and operating income FY 2020, number of patients and clinics as of YE 2020, yoy change Service Product
revenue revenue
Company Presentation March, 2020 Page 5
1 AT A GLACE
2 STRATEGY
AGENDA 3 MEDICAL UPDATE
4 BUSINESS UPDATE
5 FINANCIALS & OUTLOOK
WE ARE THE LEADING VERTICALLY INTEGRATED GLOBAL PLAYER
PRODUCTS SERVING MORE
LARGEST DIALYSIS
THAN HALF OF THE WORLD’S
NETWORK WORLDWIDE
DIALYSIS PATIENTS
13,872
3,604
757 396
1996 2019 1996 2019
Health Care Products revenue (€ million) Health Care Services revenue (€ million)
>150 m >50,000 1 out of 2 Products
>4,000 Every 0.6 ~350,000 >50 m Dialysis treat-
available ments provided
dialyzers dialysis HD patients dialysis seconds we pro- dialysis patients dialysis
machines worldwide in150 centers vide a dialysis treatments in around 50
treated with an countries treatment p. a. countries
FME machine worldwide
Company Presentation March, 2020 Page 7
OUR RECIPE FOR SUCCESS
EMPOWER PEOPLE. ADVANCE CARE. INSPIRE WITH OUR PURPOSE AND VALUES.
LEADERSHIP
Our Management
Board and top leadership
provides the foundation
DATA
MEDICAL
SCIENTISTS
Medical KPIs of more than EXPERTS
50 million treatments 5 1 Our 300+ medical experts
monitored and analyzed use data insights and latest
scientific findings
HEALTH CARE
PROFESSIONALS RESEARCH &
55,000 health care 4 2 DEVELOPMENT
professionals2 serving 1,200 highly qualified team
350,000 patients members, 10,000+ patents
in 50 countries
3
PRODUCTION
16,000 employees1 at 45 production
sites in more than 20 countries
1 Full-time equivalents as at Dec. 31, 2019 | 2 Include nurses, patient care technicians and physician services
Company Presentation March, 2020 Page 8
WE BELIEVE THAT HEALTH CARE IN THE FUTURE
WILL DIFFER FROM TODAY
Global ageing Health care
Life expectancy as well as staff shortages
population over 65 significantly Global health workforce shortage to
higher1,2 increase further in coming decades
Chronic diseases Cost pressure in
More chronic patients, longer health care systems
treatment spans3; rising Health care systems in need
costs of chronic diseases4 of sustainable solutions
System limitations
Fragmented care
System designed for acute,
One patient – several conditions –
lack of concepts for multimorbid,
numerous physicians
chronic patients
… disrupts the way we deliver health care
COVID-19 AND … will affect health care provision
DIGITALIZATION today. Big data analytics and artificial worldwide in many ways.
intelligence provide new insights. THE “NEW NORMAL”
1 Life expectancy has steadily increased for more than 150 years with no sign of deceleration. | 2 Between 2000 and 2030, the population over 65 years will more than double from 0.4 bn to 1.0 bn worldwide
(United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Volume II: Demographic Profiles (ST/ESA/SER.A/427)). | 3 The increasing number of
elderly citizens will lead to a rise in age-related chronic conditions. As people grow older, they will need to be treated longer for chronic conditions. In developed countries >50% of all people at retirement age
suffer from two or more chronic conditions simultaneously. | 4 Chronic diseases worldwide cause ~USD 8,000 billion in cost of illness every year.
Company Presentation March, 2020 Page 9
KEY DRIVERS FOR OUR CORE DIALYSIS BUSINESS REMAIN INTACT
ADDRESSING GLOBAL HEALTH CARE CHALLENGES
AGEING GLOBAL DIALYSIS
POPULATION HYPERTENSION DIABETES PATIENTS
Global population People living People living People on main-
aged 65+1 with hypertension2 with diabetes3 tenance dialysis4
1.0 578 >6
2030
2030
2030
billion million million
+150% +280% +460%
One out of four
2000
2000
2000
0.4 people worldwide 151 1.07
billion has hypertension! million million
1 United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Volume II: Demographic Profiles (ST/ESA/SER.A/427)
2 WHO Global Health Observatory (people >18 years of age) | 3 IDF Diabetes Atlas 2019 (9th edition) | 4 FME Long Range Patient Projection
Company Presentation March, 2020 Page 10THE NEXT STEP IN OUR STRATEGY
RENAL CARE CONTINUUM
NEW RENAL CARE CKD AND RENAL
VALUE-BASED CARE
MODELS TRANSPLANTATION INNOVATIONS
Transforming renal care Create medical value while Treat patients holistically across Disrupt the way we
with new digital tools: keeping care affordable: the Renal Care Continuum: do dialysis today:
▪ Personalized medicine ▪ Leverage global network and ▪ Expand value-based care programs ▪ Cell therapy
▪ Expansion of renal care models vertical integration to CKD ▪ Biomaterials with functional
▪ Therapeutic innovations ▪ Drive the development towards a ▪ Include kidney transplantation in compatibility to organs and living
▪ Holistic home care pay-for-performance system value-based care systems
▪ Offer patients freedom and choice ▪ Enable xeno transplantation
for best treatment options
Company Presentation March, 2020 Page 11THE NEXT STEP IN OUR STRATEGY
COMPLEMENTARY ASSETS CRITICAL CARE
Building out our network and leveraging core Leverage expertise to address multiple
competencies by partnerships, investments health challenges
and acquisitions Further expand portfolio of critical care products, such as:
▪ Coordinating patients efficiently ▪ Highly effective solutions for renal replacement therapy
▪ Standardizing medical procedures for plasma exchange in a critical care setting
▪ Operating outpatient facilities ▪ Therapies for lung failure via CO2 removal and
▪ Innovating products oxygenation with acute respiratory failure
Company Presentation March, 2020 Page 12THE NEXT STEP IN OUR STRATEGY
LEVERAGING OUR CORE COMPETENCIES
VALUE-BASED CARE CKD AND TRANSPLANTATION
Create medical value while keeping care Treat patients holistically across
affordable the Renal Care Continuum
NEW RENAL CARE MODELS RENAL CARE INNOVATIONS
Transforming renal care Disrupt the way we
with new digital tools do dialysis today
COMPLEMENTARY ASSETS CRITICAL CARE SOLUTIONS
Building out our network and leveraging Leverage expertise to address multiple
core competencies by partnerships, health challenges
investments and acquisitions
Company Presentation March, 2020 Page 13SUSTAINABILITY PRIORITIES
COMMITTED TO LONG-TERM SUSTAINABLE DEVELOPMENT
INTEGRATION DRIVERS
Global effort
Global sustainability program drives strategic efforts to
integrate sustainability into our business over three years
from 2020-2022: focus on material areas Patients,
Employees, Anti-bribery and –corruption, Human/labor
rights, Data privacy and security, Environment, Sustainable
supply, Occupational health and safety
Targets
Management Compensation System 2020+ linked
to sustainability targets
Strategic approach
Long-term focus on activities that support our mission
to provide theXXXXX
best possible care and deliver sustainable
solutions for ever more patients in diverse health care
systems
Company Presentation March, 2020 Page 142020 SUSTAINABILITY PROGRESS
ON TRACK TO ACHIEVE CONTINUOUS IMPROVEMENTS
Commitment Performance Transparency
Global standards defined New global KPI defined >100 KPI included in
for patient care, human for patient feedback, Non-financial Report
& labor rights and product quality,
supplier management sustainable supply,
compliance
Common responsibilities Measurable progress Increased disclosure
SUSTAINABILITY HIGHLIGHTS
> 440 8% >70 Green & Lean 37,000 Included in Dow
Product improvements Increased employee initiatives to reduce Third parties assessed Jones Sustainability
implemented engagement rate environmental impact for compliance risks Index for 11th time
Company Presentation March, 2020 Page 15THE WAY FORWARD
CAPTURING SUSTAINABLE, PROFITABLE GROWTH POTENTIAL
GEO REVENUE CAGR CONTRIBUTION CONTRIBUTION
VIEW 2020 – 2025 in % of Revenue 2025 in % of Operating Income 2025
MID-SINGLE TO
NAAMPLE ROOM FOR GROWTH 2020 – 2025
ROIC IN % | OUTLOOK 2025: 7.0% – 7.5%
FUNDING USE OF FUNDING
GROWTH
5.0
0.2 0.5
17.0 5.2 Potential to
generate
upside to mid-
term targets
3.5
2.6
Cashflow from Estimated Maintenance Renal Care Critical Care Complementary
Operations available for Sustainable Capex Continuum Solutions Assets
investments (2020-2025) Dividend
Company Presentation March, 2020 Page 17STRONG TRACK RECORD
MID-TERM COMMITMENT: 3.0 – 3.5x (INCL. IFRS 16) STABLE INVESTMENT-GRADE RATING
NET DEBT/EBITDA TARGET CORRIDOR
3.2x Current
incl. IFRS 16 2.9x ratings Rating Outlook
excl. relief funding
S&P BBB stable
2.1x
2.7x Moody‘s Baa3 stable
2.5x
excl. IFRS 16 Fitch BBB- stable
1.8x
2017 2018 2019 2020
STRONG AND STABLE MAINTAIN HEADROOM FOR HOLISTIC OPEX AND
CASH FLOW FINANCIAL ORGANIC AND CAPEX MANAGEMENT
GENERATION RESILIENCE INORGANIC
GROWTH
Ratios based on €-figures according to IFRS. | 2017 – 2019 → Excluding IFRS 16 | 2019 – 2020 → Including IFRS 16 | 2020 excl. U.S. federal relief funding and advanced payments under the CARES Act | Latest
rating update: S&P: May 23, 2019; Moody’s: May 20, 2020; Fitch: April 9, 2020
Company Presentation March, 2020 Page 181 AT A GLACE
2 STRATEGY
AGENDA 3 MEDICAL UPDATE
4 BUSINESS UPDATE
5 FINANCIALS & OUTLOOKCONFIRMED COVID-19 CASES THROUGHOUT 2020
GLOBAL | COVID-19 CASES FME | COVID-19 CASES GLOBALLY
700,000
2,500
600,000
2,000
500,000
400,000 1,500
300,000
1,000
200,000
500
100,000
0 0
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
Rolling 7-day average of daily new confirmed COVID-19 cases. Left chart: global data of John Hopkins University CSSE COVID-19
Data (February 15, 2021), right chart: FME data based on internal sources
Company Presentation March, 2020 Page 20Q4 2020 | QUALITY OF CARE ON A HIGH LEVEL
NORTH AMERICA EMEA LATIN AMERICA ASIA-PACIFIC
% of patients Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019
Kt/V ≥ 1.2 97 97 93 94 91 91 94 95
Hemoglobin = 10–12 g/dl 71 71 82 82 48 50 52 56
Calcium = 8.4–10.2 mg/dl 81 81 78 79 73 76 72 74
Albumin ≥ 3.5 g/dl 80 81 90 89 89 91 91 87
Phosphate ≤ 5.5 mg/dl 59 60 80 80 76 76 64 63
Patients without catheter
79 81 77 78 78 79 81 83
(after 90 days)
in days
Days in hospital per patient year 9.7 10.3 7.7 7.5 4.0 4.3 3.5 2.6
Definitions of quality parameters cf. 2019 Annual Report, Section “Non-Financial Group Report”
Company Presentation March, 2020 Page 21PATTERN OF EXCESS DEATHS DUE TO COVID | 2020 VS. 2019
Δ = 3,705
Δ = 2,934
Δ = 2,739
Excess deaths due
Δ = 1,001 to COVID-19 were
10,379 in 2020
compared to
traditional seasonal
trends for 2019
Q1 Q2 Q3 Q4
TOTAL: 2019 TOTAL: 2020
Company Presentation March, 2020 Page 22WHAT WAS THE IMPACT ON THE DEMOGRAPHICS OF OUR PATIENTS?
2020 2019 2018
NORTH AMERICA ▪ This does not yet
support a hypothesis
Age (years) 62.8 62.8 62.6
that the mortality
Diabetes % 64.0 63.7 62.9 rate will be less than
the pre-pandemic
baseline
EMEA
2020 2019 2020 ▪ The demographics of
the population have
Age (years) 68.6 68.5 68.5 not changed
Diabetes % 31.6 32.6 32.7 ▪ The excess mortality
is seen in all age
cohorts of our
patients
Company Presentation March, 2020 Page 23GENERAL PERCENT OF POPULATION VACCINATED BY REGION
North
8 America
6
Europe ▪ Population (or “herd”)
immunity requires
70-85% of the
4 population to have
immunity from either
South vaccination or
2 America exposure
Asia
0
1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb
Cumulative COVID-19 vaccination doses administered per 100 people (Official data by Our World in Data as of February 16, 2020)
Company Presentation March, 2020 Page 241 AT A GLACE
2 STRATEGY
AGENDA 3 MEDICAL UPDATE
4 BUSINESS UPDATE
5 FINANCIALS & OUTLOOKFY 2020 | MAINTAINING GROWTH IN A CHALLENGING YEAR
> Financial targets for 20201 achieved
> Q4 impacted by:
> Goodwill impairment in Latin America and
> Accelerated COVID-19-related excess mortality
in North America and EMEA
> Growth in home dialysis in the U.S. on track
> 24th consecutive dividend increase planned to be
proposed
1 FY 2020 targets for revenue and net income growth at constant currency excluding special items (Latin America impairment of
€195 million) and on an adjusted 2019 basis.
Company Presentation March, 2020 Page 26Q4 2020 | COVID-19 INCREASINGLY BURDENSOME FOR EARNINGS
Q4 2020 Q4 2019 Growth Growth
€ million € million in % in %cc
Revenue 4,400 4,580 (4) 4
▪ COVID-19
negatively affecting
Operating income 462 616 (25) (18) top-line growth
▪ Increased costs for
Excl. special items / PPE and higher
657 663 (1) 5
adjusted
compensation for
frontline workers
▪ Substantial
Net income 177 343 (48) (43) headwinds from FX
translation
Excl. special items /
372 368 1 6
adjusted
cc = at constant currency
Q4 2019 excl. effects from: NxStage costs, Cost Optimization Program and Care Coordination Gain/Loss. | Q4 2020 excluding
Latin America impairment of goodwill and tradenames (€ 195m).
Company Presentation March, 2020 Page 27FY 2020 | STRONG NET INCOME PERFORMANCE
2019 Basis
2020 Results for Targets Growth Growth Guidance 2020
€ million 2020 in % in %cc
€ million
Mid to high single digit
Revenue 17,859 17,477 2 5
cc growth
Net income 1,164 1,200 (3) (1)
Excl. special items / Mid to high single digit
1,359 1,236 10 12
adjusted cc growth
cc = at constant currency
Special items are effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of
giving guidance. | FY 2019 excl. effects from: NxStage costs, Cost Optimization Program and Care Coordination Gain/Loss. | FY 2020
excluding Latin America impairment of goodwill and tradenames (€ 195m).
Company Presentation March, 2020 Page 28DIVIDEND INCREASE PLANNED TO BE PROPOSED
DIVIDEND PER SHARE IN EUR
+11.7%
1.341
DIVIDEND
5Y-CAGR +10.9%
1.20
1.17
▪ 24th consecutive
1.06 dividend increase
planned to be
0.96
proposed
▪ Planned dividend
0.80 proposal would
assure dividend
continuity despite
COVID-19 challenges
2015 2016 2017 2018 2019 2020
1 Planned dividend proposal for 2020 of €1.34 to be approved by the AGM on May 20, 2021
Company Presentation March, 2020 Page 292021 | TAIL- AND HEADWINDS
TAILWINDS
• Growth in value-based care programs
• Medicare Advantage
•
•
Higher adoption of home dialysis
Effect from completion of cost optimization measures FME25
Transformation of
global operating
HEADWINDS model to sustainably
• Impact from COVID-19 on treatment volumes and increased costs reduce the cost base
• Reduced clinic utilization limits ability to absorb: and support our 2025
• Wage inflation targets
• Fixed cost inflation
• COVID-19 related SG&A savings realized in 2020
• Calcimimetics
• Transactional FX losses
Company Presentation March, 2020 Page 301 AT A GLACE
2 STRATEGY
AGENDA 3 MEDICAL UPDATE
4 BUSINESS UPDATE
5 FINANCIALS & OUTLOOK2020 TARGETS ACHIEVED
5% Revenue growth cc Reported
1,092
18,395
-174
17,859
-536
17,477 Targets 2020
2019 revenue basis Business growth cc Net COVID- 2020 revenue FX 2020 revenue
for targets 2020 19 effect cc target achievement Achieved our target
2020 for revenue
12% Net Income growth cc
and exceeded net
193
income growth at
1,379
-50
1,359
constant currency
-20
1,236
1,164
-195
2019 net Business Net COVID- 2020 net FX 2020 net Special item: 2020 net
income basis growth cc 19 effect cc income target income excl. Latin America income
for targets achievement special items impairment
2020
Company Presentation March, 2020 Page 32Q4 2020 | ORGANIC GROWTH ON A GLOBAL BASIS
NORTH AMERICA € million
Revenue 2,983 (6%)
NORTH AMERICA
Organic growth (1%) EMEA
68%
16%
EMEA
4,400
€ million
€m ASIA-PACIFIC
Revenue 715 1% 12%
+1%
Organic growth 5% (Organic)
ASIA-PACIFIC € million LATIN AMERICA
4%
Revenue 517 4%
Organic growth 8%
▪ North America negatively impacted by
COVID-19
LATIN AMERICA € million ▪ Solid organic growth development outside
Revenue 177 (9)% North America
Organic growth 9% ▪ Unfavorable FX developments in all regions
Company Presentation March, 2020 Page 33Q4 2020 SERVICES | MORE PRONOUNCED IMPACT BY COVID-19
Same market
Organic
Q4 2020
€ million
Q4 2019
€ million
Growth
in %
Growth
in %cc
growth
treatment
growth
Drivers
in %
Revenue in %
Health Care Services 3,406 3,607 (6) 2 0 1 + Negative prior year
North America 2,704 2,893 (7) 1 (1) 0
revenue effect
of which Care Coordination 292 325 (10) (2) 1
+ Reimbursement
increases
EMEA 337 352 (4) 1 0 (1)
+ Treatment growth
Asia-Pacific 235 230 2 5 7 9
− Loss of treatments
of which Care Coordination 77 68 14 15 10 due to COVID-19
Latin America 125 132 (6) 20 9 (2) in North America
and EMEA
EMEA − Headwind from
3,406 10%
NORTH AMERICA calcimimetics
€m ASIA-PACIFIC
79% +0% 7% − FX translation
(Organic)
LATIN AMERICA
4% cc = at constant currency
North America: same market treatment growth relates to growth in the U.S.
Company Presentation March, 2020 Page 34Q4 2020 PRODUCTS | STRONG UNDERLYING ORGANIC GROWTH
Organic
Q4 2020 Q4 2019 Growth Growth
€ million € million in % in %cc
growth
Revenue in %
Health Care Products 994 973 2 9 8
Dialysis Products 968 953 2 8 7
Drivers
North America 279 281 (1) 7 6
+ Products for acute
care treatments
EMEA 353 337 5 11 8
+ In-center
Asia-Pacific 282 269 5 8 8 disposables
Latin America 52 61 (15) 8 8 + PD products
Non-Dialysis Products 26 20 28 30 30 + Home HD products
− Lower sales of
EMEA NORTH AMERICA machines for chronic
38% 28%
994 treatment
€m
+8%
− FX translation
LATIN AMERICA (Organic) ASIA-PACIFIC
5% 29%
cc = at constant currency
Company Presentation March, 2020 Page 35Q4 2020 | IMPAIRMENT WEIGHING ON PROFITABILITY
Operating income in €m and margins in %
20.6%
Q4 margin drivers
n/a
18.7% + Negative prior year earnings effect
107
-186 10.5%
17.9% + Continued benefit from lower G&A spend
134
‒ Impairment loss Latin America
%
‒ COVID-19 related excess mortality and
588 additional costs negatively impacted in
533
particular North America and EMEA
‒ Lower reimbursement for calcimimetics
North EMEA Asia Pacific Latin Group
America America
Operating income in €m, excluding Corporate
Company Presentation March, 2020 Page 36Q4 2020 | DECREASING NET LEVERAGE
Q4 2020 Q4 2019
€ million € million
Operating cash flow 584 771
in % of revenue 13.3 16.8
Capital expenditures, net (306) (337)
Free cash flow 283 434
Free cash flow after investing activities 130 230
NET LEVERAGE RATIO (NET DEBT/EBITDA)1
Current ratings5 S&P Moody’s Fitch
3.22 2.94
2.6 2.3 2.1 Rating BBB Baa3 BBB-
1.8
2.53 2.7 Outlook stable stable stable
2015 2016 2017 2018 2019 2020
1 See Chart 37 for a reconciliation of EBITDA │2 Incl. IFRS 16│3 Excl. IFRS 16 | 4 Excl. U.S. federal relief funding and advanced
payments under the CARES Act | 5 Latest update: S&P: May 23, 2019; Moody’s: May 20, 2020; Fitch: April 9, 2020
Company Presentation March, 2020 Page 372021 TARGETS
Assumptions:
REVENUE NET INCOME • Excess mortality to continue to
(constant currency (constant currency accumulate in the first half of 2021
growth in %) decline in %) • COVID-19-related additional costs in the
Dialysis Services business to remain on
+ - •
high level
Besides the extended suspension of the
Medicare sequestration through March
Low to mid- High-teens to 2021 no further public relief funding
single digits mid-twenties assumed
Excluding special items:
Special items include costs related to FME25
and effects that are unusual in nature and
have not been foreseeable or not
2020: EUR 17,859m 2020: EUR 1,359m foreseeable in size or impact at the time of
giving guidance.
Company Presentation March, 2020 Page 38HEAD- AND TAILWINDS TO OUR TARGETS 2021
Revenue: Low to mid single-digit growth
17,859
2020 revenue Business growth Value-Based Care Medicare COVID-19 effect Calcimimetics 2021
Advantage revenue at cc
Net Income: High-teens to mid-twenties decline
1,359
2020 net Business Value- Medicare Home & COVID- Cost inflation Calcimimetics Transaction 2021 net
income excl. growth Based Care Advantage COP savings 19 effect losses income at cc
special items
Charts are indicative to illustrate the most important drivers for 2021.
Company Presentation March, 2020 Page 39TRANSFORMATION OF THE OPERATING MODEL | FME25
> To support our 2025 strategy, further strengthen profitability and compensate for the
COVID-19 effects, FME25 to be launched in 2021
> Invest up to €500m by 2025 to sustainably reduce the cost base and minimally improve
operating income by the same amount
FME25 addresses the simplification of the Fresenius
Medical Care operating model and shall include
FME25 >
>
Simplifying and streamlining the global
operating model
Apply learnings from the “new normal”
> Accelerating our digitalization agenda
Company Presentation March, 2020 Page 40MID-TERM TARGETS 2020-2025
Assumptions:
It is assumed that FME25 compensates
REVENUE NET INCOME for the anticipated COVID-19 related
(CAGR, constant (CAGR, constant effects
currency growth in %) currency growth in %)
Excluding special items:
Mid-single digit High-single digit Special items include costs related to
FME25 and effects that are unusual in
nature and have not been foreseeable or
not foreseeable in size or impact at the
time of giving guidance.
Company Presentation March, 2020 Page 41Your Questions Are Welcome!
Q4 2020 | PROFIT AND LOSS
Q4 2020 Q4 2019 Growth Growth
€ million € million in % in %cc
Revenue 4,400 4,580 (4) 4
Operating income 462 616 (25) (18)
Operating income margin in % 10.5 13.5
Operating income excl. special items / adjusted 657 663 (1) 5
Operating income margin excl. special items / adj. 14.9 14.5
Net interest expense 84 102 (18) (12)
Income before taxes 378 514 (27) (19)
Income tax expense 139 109 27 39
Tax rate in % 36.7 21.3
Non-controlling interest 62 62 (1) 8
Net income 177 343 (48) (43)
Excl. special items / adjusted 372 368 1 6
cc = at constant currency
Company Presentation March, 2020 Page 43FY 2020 | PROFIT AND LOSS
FY 2020 FY 2019 Growth Growth
€ million € million in % in %cc
Revenue 17,859 17,477 2 5
Operating income 2,304 2,270 2 4
Operating income margin in % 12.9 13.0
Operating income excl. special items / adjusted 2,499 2,356 6 8
Operating income margin excl. special items / adj. 14.0 13.5
Net interest expense 368 429 (14) (12)
Income before taxes 1,936 1,841 5 7
Income tax expense 501 402 25 28
Tax rate in % 25.9 21.8
Non-controlling interest 271 239 14 16
Net income 1,164 1,200 (3) (1)
Excl. special items / adjusted 1,359 1,236 10 12
cc = at constant currency
Company Presentation March, 2020 Page 44FY 2020 | SERVICES
FY 2020 FY 2019 Growth Growth Organic Same market
growth growth
€ million € million in % in %cc in % in %
Total 14,114 13,872 2 5 3 2
North America 11,364 11,157 2 4 2 1
of which Care Coordination 1,307 1,184 10 13 17
EMEA 1,365 1,354 1 4 3 1
Asia-Pacific 876 862 2 2 3 8
of which Care Coordination 249 241 3 5 (2)
Latin America 485 499 (3) 23 15 2
EMEA
10%
NORTH AMERICA €m
81% 14,114 ASIA-PACIFIC
+3% 6%
(Organic)
LATIN AMERICA
3%
North America: same market treatment growth relates to growth in the U.S.
Company Presentation March, 2020 Page 45FY 2020 | PRODUCTS
FY 2020 FY 2019 Growth Growth Organic
growth
€ million € million in % in %cc in %
Total Health Care Products 3,745 3,605 4 7 5
Dialysis Products 3,644 3,529 3 7 4
North America 1,113 1,038 7 9 4
EMEA 1,303 1,263 3 6 4
Asia-Pacific 1,013 997 2 4 4
Latin America 199 210 (5) 17 16
Non-Dialysis Products 101 76 34 34 34
EMEA NORTH AMERICA
38% 30%
3.745
€m
+5%
LATIN AMERICA (Organic) ASIA-PACIFIC
5% 27%
Company Presentation March, 2020 Page 46DEBT
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
FY 2020 FY 2019 FY 2018
€ million € million € million
Debt
Short term debt from unrelated parties 63 1,150 1,205
+ Short term debt from related parties 17 22 189
+ Current portion of long-term debt 1,008 1,447 1,107
+ Current portion of long-term lease liabilities 588 622
+ Current portion of long-term lease liabilities from related
21 17
parties
+ Long-term debt, less current portion 6,800 6,458 5,045
+ Long-term lease liabilities, less current portion 3,764 3,960
+ Long-term lease liabilities from related parties, less current
119 106
portion
Total debt and lease liabilities 12,380 13,782 7,546
− Cash and cash equivalents (1,082) (1,008) (2,146)
Total net debt and lease liabilities 11,298 12,774 5,400
Company Presentation March, 2020 Page 47EBITDA
RECONCILIATION OF ANNUALIZED ADJUSTED EBITDA AND NET LEVERAGE RATIO TO THE MOST DIRECTLY COMPARABLE
IFRS FINANCIAL MEASURES
FY 2020 FY 2019 FY 2018
€ million € million € million
Net income 1,435 1,439 2,226
+ Income tax expense 501 402 511
− Interest income (42) (62) (147)
+ Interest expense 410 491 448
+ Depreciation and amortization 1,587 1,553 725
+ Adjustments 249 110 (722)
Adjusted EBITDA (annualized) 4,140 3,933 3,041
Net leverage ratio (Net debt/EBITDA) 2.7 3.2 1.8
Adjustments: Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in
the Amended 2012 Credit Agreement (2019: -€71 M), NxStage related transaction costs (2019: €95 M), non-cash charges, primarily
related to pension expense (2020: €50 M; 2019: €46 M) and impairment loss (2020: €199 M; 2019: €40 M).
Company Presentation March, 2020 Page 482020 BASE FOR TARGETS 2021, RECONCILIATION ADJUSTMENTS
FY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020
€ million € million € million € million € million
Revenue 17,859 4,488 4,557 4,414 4,400
Net income excl. special items 1,359 283 351 354 372
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL
MEASURES
Q4 2020 Q4 2019
€ million € million
Revenue 4,400 4,580
Net income 177 343
NxStage costs 1
Cost optimization costs 44
(Gain) loss related to divestitures of Care Coordination activities (20)
Net income adjusted 368
Special item: Impairment in the Latin America segment 195
Net income excl. special items 372
Company Presentation March, 2020 Page 49RETURN ON INVESTED CAPITAL (ROIC)
▪ Long-term value
12.4% rep. creation based on
accretive
acquisitions and
organic growth
8.6% ▪ 2018 positive impact
7.8% 8.0% adj. 8.0% adj. from Sound
7.1% divestiture
6.6% excl. special item
6.1% rep. ▪ 2019 negative
5.8% rep. impact from
2015 2016 2017 2018 2019 2020 NxStage acquisition
▪ 2019 negative
impact from Latin
America impairment
• For the years 2015-17 ROIC as reported within the Form-20-F.
• ROIC adjusted in 2018 for the divestiture of Care Coordination activities, FCPA related charge, U.S. Ballot Initiatives, U.S. tax reform /
including these effects, ROIC for FY 2018 was 12.4%
• ROIC adjusted in 2019 for the effects of IFRS 16, NxStage, FCPA, Cost optimization costs, divestiture of Care Coordination activities /
including these effects, ROIC for FY 2019 was 6.8% (excl. IFRS 16)
• ROIC in 2020 excl. the impact of the Latin America impairment (special item)
• ROIC for 2020 was 7.5% excl. IFRS 16 and excl. Latin America impairment
Company Presentation March, 2020 Page 50EXCHANGE RATES, U.S. DIALYSIS DAYS PER QUARTER, DEFINITIONS
EXCHANGE RATES U.S. DIALYSIS DAYS PER QUARTER
Euro vs. 2020 2019 2018 Q1 Q2 Q3 Q4 Full year
€:$ Period end 1.227 1.123 1.145 2021 77 78 79 79 313
Average 1.142 1.119 1.181 2020 77 78 79 79 313
2019 76 78 79 80 313
€:CNY Period end 8.023 7.821 7.875 2018 77 78 78 80 313
2017 77 78 79 79 313
Average 7.875 7.735 7.808
2016 78 78 79 79 314
2015 76 78 79 79 312
€:RUB Period end 91.467 69.956 79.715
Average 82.725 72.455 74.026
DEFINITIONS
€:ARS Period end 102.900 67.212 43.039
Average 81.042 53.948 32.984
cc Constant currency
HD Hemodialysis
€:BRL Period end 6.374 4.516 4.444 PD Peritoneal dialysis
Average 5.894 4.413 4.308 Net income Net income attributable to shareholders of FME
Company Presentation March, 2020 Page 51FY 2020 | PATIENTS, TREATMENTS, CLINICS
Patients Treatments Clinics Patients Treatments Clinics
as of Dec. 30, as of Dec. 30, as of Dec. 30, as of Dec. 30, as of Dec. 30, as of Dec. 30,
2020 2020 2020 2019 2019 2019
North America 210,260 32,843,592 2,639 211,064 32,138,448 2,579
Growth in % 0 2 2 3 4 2
EMEA 66,008 10,189,373 804 66,217 10.042,109 781
Growth in % 0 1 3 2 3 1
Asia-Pacific 33,106 4,660,875 400 33,005 4,579,220 400
Growth in % 0 2 0 5 5 2
Latin America 37,179 5,881,415 249 34,810 5,388,330 234
Growth in % 7 9 6 6 6 2
Total 346,553 53,575,255 4,092 345,096 52,148,107 3,994
Growth in % 0 3 2 4 4 2
Company Presentation March, 2020 Page 52FINANCIAL CALENDAR 2020
REPORTING DATES & AGM
May 6 Q1 2021 Earnings Release and Conference Call
May 20 Annual General Meeting 2021 (Virtual)
July 30 Q2 2021 Earnings Release and Conference Call
November 2 Q3 2021 Earnings Release and Conference Call
CONFERENCES & MEET THE MANAGMENT
March 15 Barclays C-Suite Call Series with CEO Rice Powell
March 29 Expert Call Mapping a Digital Future for Kidney Care with Frank Maddux, MD
Please note that dates and/or participation might be subject to change
Company Presentation March, 2020 Page 53CONTACTS
FME INVESTOR
RELATIONS
Else-Kröner-Str. 1
61352 Bad Homburg v.d.H. DR. DOMINIK HEGER ROBERT ADOLPH PHILIPP GEBHARDT
Germany
Head of Investor Relations, Vice President Director
Strategic Development & Investor Relations Investor Relations
Communications | EVP
TICKER:
FME or FMS (NYSE) +49(0) 6172-609-2601 +49(0) 6172-609-2477 +49(0) 6172-609-95011
dominik.heger@fmc-ag.com robert.adolph@fmc-ag.com philipp.gebhardt@fmc-ag.com
WKN:
578 580
ISIN:
DE00057858002
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