Full year 2017 Press Conference | February 27, 2018 Rice Powell - CEO - Fresenius
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Full year 2017
Press Conference | February 27, 2018
Rice Powell - CEO
© | Press Conference | FY 2017 1
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. The Company has based these forward-looking statements on current
estimates and assumptions 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 competitive conditions, regulatory reforms, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings 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 German Exchange Commission (Deutsche Börse).
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.
© | Press Conference | FY 2017 22
Growth trend continued in 2017
+4% Clinics: 3,752
+4% Patients: 320,960
+4% Treatments: 48,269,144
Growth targets achieved
21st consecutive dividend increase proposed
© | Press Conference | FY 2017 33
Patients first: Live-saving action in hurricane zones
Natural disasters pose immense
challenges for dialysis patients and
staff
2017: unusually high number of
natural disaster with three
hurricanes and an earthquake in
North America
Distribution of emergency packets,
extra shifts in clinics, transport via
“duck boats”
Transfer of 89 patients from Puerto
Rico who were evacuated to an
FMC clinic in Miami
© | Press Conference | FY 2017 44
All business areas fueled our growth in 2017
Health Care
18%
Products
€17.8bn
Dialysis +7%cc
Services 65%
Revenue
+5%cc +9%cc
Care
17% Coordination
+36%cc
cc = constant currency
© | Press Conference | FY 2017 55
Profitable growth continued
Revenue Net income
in € bn in € m
17.8 1,280
16.6 1,144
+7% +12%
2016 2017 2016 2017
Growth of 9% at constant Growth of 14% at constant
currency currency
Organic growth of 7% Adjusted1 net income growth
of 7% at constant currency
1 Net income attr. to shareholders of FME, excl. VA Agreement,
Natural Disaster Costs & FCPA related charge and excl. gain from re-
measurement of deferred tax balances resulting from the U.S. tax
reform
© | Press Conference | FY 2017 66
Delivering across all regions
North America EMEA
+9%
+6%
12.0 12.9
2.4 2.5
2016 2017
#1 2016 2017
dialysis
Latin America provider Asia-Pacific
+13%
+15%
1.5 1.6
0.6 0.7
Health Care Services revenue in EUR bn
2016 2017 Health Care Products revenue in EUR bn 2016 2017
at constant currency, different scales applied
© | Press Conference | FY 2017 77
Health Care Services – solid growth
3 4
2
€14.5bn
North American Care Coordination +10%cc
business continues to show strong
growth
1
EMEA driven by patient growth
Growth in Asia-Pacific 1 North America 83%
supported by acquisitions
2 EMEA 8%
Dialysis treatments increased by 4% 3 Asia-Pacific 5%
4 Latin America 4%
cc = constant currency
© | Press Conference | FY 2017 88
Products show strong demand
1
4
€3.3bn
Higher sales of dialyzers, machines, +7%cc
and peritoneal dialysis products
2
Strong revenue growth in Latin 3
America and Asia-Pacific
Non-dialysis product revenue 1 EMEA 40%
increased by 59% to €79 million due 2 Asia-Pacific 27%
to the acquisition of Xenios
3 North America 26%
4 Latin America 7%
cc = constant currency
© | Press Conference | FY 2017 99
NxStage: New opportunities in home care segment
Opportunity: Increasing demand for home treatment
82% of patients and families fully educated on their
treatment options would select a home modality1
Advantages of home dialysis: FME home dialysis
patients in the U.S.
Higher patient satisfaction (in % of FME patients in the U.S.)
More engaged patients 15%+
Flexibility to tailor the
therapy around the 9.9% 10.2%
patient’s lifestyle 6.6%
Nx2Me
Connected
Positive clinical results
Health
Reduced cost of care
2012 2014 2016 2022E
1 Devoe et al., American Journal of Kidney Disease, 2016
© | Press Conference | FY 2017 10
10Further optimizing Care Coordination portfolio
Acquisition of Cura Day Hospitals in April
2017
Opportunity to leverage core competence of
operating outpatient facilities
Scaling up clinic network in the Australian
market
Divestiture of Shiel in December 2017, a
provider of non-dialysis laboratory services
Care Coordination portfolio comprises
activities with different maturity levels and
different strategic implications
Regular reevaluation of strategic opportunities
© | Press Conference | FY 2017 11
11Global Efficiency Program – Phase II
GEP II – sustained savings 2018 - 2020
100–200
~60% EUR m
20% Procurement
5% Supply Chain Management
25% Shared Services
~30%
40% Operational Excellence
~10%
10% Capital Efficiency
2018 2019 2020 Sustained
savings
© | Press Conference | FY 2017 12
12Excellent share price performance continued
Share price & Index performance indexed in %
New
all-time
120 high
€88.90
110 FME +9%
Euro Stoxx
100
Health Care
+2%
90
80
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Share price increase of 9%, outperforming the industry benchmark index
New all-time-high reached on June 14, 2017
© | Press Conference | FY 2017 13
1321st consecutive dividend increase
Dividend per share in EUR
+10% 1.061
0.96
0.80
0.77 0.78
2013 2014 2015 2016 2017
1 proposed dividend for approval at the AGM on May 17, 2018
Continuously delivering returns to shareholders
Dividend proposal in line with net income growth
© | Press Conference | FY 2017 14
14Outlook1
Targets 2018 2017 base
(in € million)
Revenue growth2 ~8% 17,298
Net income growth3 13 to 15% 1,280
Targets 2020 20204
(2014-2020, avg. % p.a.) (in € billion)
Revenue growth ~10% 24
Net income growth5 high single digit
1 Outlook based on constant currencies & excl. effects from NxStage acquisition | 2 Revenue 2017
adjusted for effect from IFRS 15 implementation of €486m | 3 Targets 2018 including recurring
benefits from U.S. tax reform of €140-160m | 4 US-GAAP US$ 28bn target translated to IFRS/€ at
currency rates prevailing at the beginning of 2017 | © | Press
5 Excl. Conference
recurring | U.S.
impacts from FY 2017
tax reform 15
15Conclusion
Patients come first! We improve the quality of
life of our patients and take action to help our
patients.
We achieved a record year and are again
targeting strong net income growth for
2018
We are further optimizing our portfolio
and are positioning ourselves as a
provider of choice for value-based care
We kicked off the 2nd phase of our Global
Efficiency Program
We proposed the 21st consecutive dividend increase
© | Press Conference | FY 2017 16
16Your questions are welcome
Press Conference | February 27, 2018
Rice Powell - CEO
© | Press Conference | FY 2017 17You can also read
