0Media Contact
Matthias Link
T +49 6172 609-2872
matthias.link@fresenius.com

Press Release

Contact for analysts andinvestors
Dr. Dominik Heger
T +49 6172 609-2601
dominik.heger@fmc-ag.com
www.freseniusmedicalcare.com

February 20, 2019

Fresenius Medical Care achieves revised 2018 targets andaccelerates investments for future growth•

Growth trend unchanged: organic revenue growth of 4% for full year 2018•

Net income growth of 60% (14% on a comparable basis) at constant currency•

22nd consecutive dividend increase proposed: +10% to EUR 1.17•

Share buyback program of up to EUR 1bn over the next 2 years•

Meaningful investments in 2019 to capture future growth opportunities and optimize
cost base•Significantly accelerated net income growth in 2020 expected

Key figures (IFRS) – fourth quarter and full year 2018
EUR million

Q4
2018

Growthyoy

Growthyoy at cc

FY
2018

Growthyoy

Growthyoy at cc

Revenue

4,300

(3%)

(3%)

16,547(7%)(2%)

Revenue on a comparable basis

4,300

+7%

+7%

16,547(1%)+4%

Operating income (EBIT)

613

+18%

+12%

3,038

+29%

+33%

Operating income on a

648

+42%

+39%

2,346

+3%

+6%

Net income1

425

+8%

+1%

1,982

+55%

+60%

Net income1 on a comparable

408

+13%

+9%

1,377

+11%

+14%

353

+8%

+4%

1,185

+2%

+4%

comparable basis

basis
Net income1 adjusted

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.
1

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
cc = constant currency

Page 1/13

“Our company’s growth continued in 2018, generating very solid cash flow that we areusing for further investments in future growth and to create direct shareholder return,”
said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “We achieved a strong
increase in earnings per share, steadily strengthened our core competencies, and further
positioned the company to meet the challenges of a rapidly evolving healthcare market.
The ongoing Global Efficiency Program continues to improve the company’s efficiency. In
addition, our focus in 2019 will be on accelerating our investments to further improve ourcost base and capture future growth opportunities. Key growth areas are for example
U.S. home care supported by the acquisition of NxStage and increasing patient numbers
in developing economies.”

Solid revenue growth targeted for 2019 and 2020
For 2019, Fresenius Medical Care expects adjusted revenue 2,3 to grow between 3% and
7% and adjusted net income2,3 to develop in the range of (2%) to 2%. Based on the rampup of the new 2019 cost optimization program, the phasing of contributions from the Global
Efficiency Program II and other measures initiated, Fresenius Medical Care anticipates aback-end loaded acceleration of adjusted net income2,3 growth.
For 2020, Fresenius Medical Care expects adjusted revenue 2 as well as adjusted net
income2 to grow at a mid to high single digit rate.

Targets 2020²

Targets 20192,3

Adjusted revenue growth rate

Mid to high single digit

3 to 7%2018 base
EUR
million
16,026

Adjusted net income growth rate

Mid to high single digit(2) to 2%

1,341

These targets as well as the 2018 base are and will be adjusted in order to make thebusiness performance in the respective periods comparable for items such as: FCPA related
charges, the IFRS 16 implementation, the contributions from Sound in H1 2018, the gain
(loss) related to divestitures of Care Coordination activities and expenses for the cost
optimization program. All effects from the pending NxStage acquisition are excluded fromthe targets for 2019 and 2020.

2

Numbers at constant currency

3

Reported revenue 2018 of EUR 16,547 million adjusted for Sound H1 2018; reported net income 2018 of EUR
1,982 million adjusted for Sound H1 2018, the gain (loss) related to divestitures of Care Coordination
activities and the 2018 FCPA related charge (for details see reconciliation at the attached tables)

Page 2/13

Global Efficiency Program II on track
Fresenius Medical Care launched the second phase of its Global Efficiency Program (GEP
II) in 2018. The program’s objectives are to identify and realize further efficiency potentialand enhance the company’s overall competitiveness. In 2018, we achieved 15% of thetargeted sustained cost improvements, which is well ahead of the anticipated contributionof 10% for the year. Therefore, the company increases the lower end of the expected rangeof sustained cost improvements to EUR 150 million and now expects EUR 150 million to
EUR 200 million per annum by 2020.

Investments in future growth and improved cost baseNew 2019 cost optimization program
Fresenius Medical Care remains committed to a continuous optimization of its business. In
2019, the company will invest around EUR 100 million in order to sustainably improve its
cost base in addition to the GEP II program. Based on enhancements in the products andservices business, the 2019 cost optimization program is expected to be accretive to net
income already from 2020 onwards.
Investments in future growthBased on very positive patient sentiment towards the provision of dialysis in the homesetting and an innovative product portfolio, Fresenius Medical Care plans to invest inbuilding and redesigning training facilities, rolling out training courses, building up andscaling the home distribution infrastructure and optimizing facilities to meet increasing
demand for home dialysis products and services. As a part of the home strategy Fresenius
Medical Care is in the process of acquiring NxStage Medical, Inc., which produces andmarkets an innovative product portfolio of medical devices for use in home dialysis and in
the critical care setting.
The second major focus of investment in 2019 will be developing economies such as China.
Given the company’s more than 15 years of experience in China on the product side, thestrong growth of chronic diseases and the current development of the Chinese healthcare
market, Fresenius Medical Care will invest in response to the strong growth impulse there
and to participate actively in the market opportunity. Our target is to build a network ofmore than 100 clinics and to invest in home dialysis in China in the coming years. Anotherexample is the Indian market, where we grow our clinic network and have just launched
our new 4008A machine, which is engineered for developing economies.

Page 3/13

Creating direct shareholder return
22nd consecutive dividend increase proposed
Based on the solid results for full year 2018, a new record dividend of EUR 1.17 per share,
representing an increase of 10% will be proposed to the Annual General Meeting in May
2019. If approved, and based on dividend-entitled shares, the company would return atotal of EUR 359 million to its shareholders.
Share buyback program
Fresenius Medical Care has decided to utilize its strong balance sheet to create additional
shareholder return by buying back shares in a total aggregate amount of up to EUR 1 billion
over the course of 2019 and 2020 in compliance with EU safe harbor provisions.

NxStage
On 29 January 2019 Fresenius Medical Care announced that the company has extended
the end-date under the merger agreement with NxStage Medical, Inc. to account for theinterruption of the U.S. Federal Trade Commission’s review of the transaction during therecent U.S. government shutdown. The merger agreement’s end-date has been extended
to August 6, 2019, or such earlier date on which there has been 60 consecutive days offull funding of the U.S. Federal Trade Commission’s operations. The closing of thetransaction is expected in the first quarter of 2019.

Revenue development reflects portfolio divestitures
Revenue in the fourth quarter 2018 decreased by 3% at constant currency to EUR 4,300
million. On a comparable basis (excluding the effects from IFRS 15 and the H2 2017contribution from the divested Sound Inpatient Physicians, Inc.) revenue rose 7% (+7%at constant currency). Health Care Services revenue decreased by 5% (-5% at constantcurrency) to EUR 3,413 million while Health Care Products revenue increased by 5% to
EUR 887 million (+6% at constant currency).
Revenue for the full year 2018 decreased by 2% at constant currency to EUR 16,547 million(+4% at constant currency on a comparable basis). Health Care Services revenue
decreased by 9% (-4% at constant currency) to EUR 13,264 million, mainly due to thedivestitures in Q2 2018, with organic growth at a solid 4%. Health Care Products revenue
increased by 1% (+5% at constant currency) to EUR 3,283 million, primarily driven byhigher sales of chronic hemodialysis products and renal pharmaceuticals, as well as acuteand peritoneal dialysis products.

Page 4/13

Corporate cost in the fourth quarter 2018 amounted to EUR 67 million. The fourth quarter2017 (EUR 289 million) included a EUR 200 million FCPA-related charge. Corporate costs
for the full year 2018 declined from EUR 539 million to EUR 359 million, including a EUR
77 million FCPA-related charge.
Operating income (EBIT) in the fourth quarter 2018 rose 18% (+12% at constantcurrency) to EUR 613 million. On a comparable basis (excluding effects from thedivestitures of Care Coordination activities, the H2 2017 contribution from Sound
Physicians, the U.S. ballot initiatives and the 2018 FCPA-related charge), EBIT increasedby 42% (+39% at constant currency) to EUR 648 million. For the full year 2018, EBIT was
EUR 3,038 million, a strong increase of 29% (+33% at constant currency) on the previous
year. On a comparable basis, EBIT increased by 3% (+6% at constant currency) to EUR
2,346 million, mainly due to the lower FCPA-related charge.
Net interest expense in the fourth quarter 2018 was EUR 58 million, compared to EUR
80 million in the fourth quarter 2017. For the full year 2018, net interest expense was EUR
301 million, a year-over-year reduction of 17%. This reduction was supported by therepayment of higher-interest-bearing instruments and their replacement mainly with aEuro bond at lower interest rates in July 2018, a lower debt level, interest income frominvesting the Sound Physicians sale proceeds, and lower interest on taxes.
Income tax expense in the fourth quarter 2018 benefited from prior year and audit
impacts. For the full year 2018, income tax expense increased by 15% to EUR 511 million.
On a reported basis, the tax rate was 18.7% (22.2% for the full year 2017), a reduction
largely driven by the gain related to the divestitures of Care Coordination activities with alower tax basis and favorable prior year tax effects.
Excluding (i) the impact from the gain (loss) related to divestitures from Care Coordination
activities, (ii) the H2 2017 contribution from Sound Physicians, (iii) the U.S. ballot
initiatives and (iv) the FCPA-related charge, the VA agreement and the Natural Disastercosts as well as the effects from the U.S. tax reform, the 2018 effective tax rate decreased
by 70 basis points to 30.1%.
Net income1 for the fourth quarter 2018 increased by 8% (+1% at constant currency) to
EUR 425 million. On a comparable basis (excluding (i) the impact from the gain (loss)
related divestitures from Care Coordination activities, (ii) the H2 2017 contribution fromSound Physicians, (iii) the U.S. ballot initiatives and (iv) the 2018 FCPA-related charge)

Page 5/13

net income for the fourth quarter of 2018 increased 13% to EUR 408 million (+9% atconstant currency). Based on approximately 306.9 million shares (weighted average
number of shares outstanding), basic earnings per share (EPS) improved by 8%, to
EUR 1.38. Adjusted for the previously described effects, EPS rose 13% to EUR 1.33 (+9%at constant currency).
Net income1 for the full year 2018 increased by 55% (+60% at constant currency) to EUR
1,982 million. Excluding the four effects described in the previous paragraph ((i) EUR +673
million, (ii) EUR 38 million, (iii) EUR -40 million, and (iv) EUR -28 million), net income
increased 11% to EUR 1,377 million (14% at constant currency). Based on approximately
306.5 million shares, basic EPS increased from EUR 4.17 to EUR 6.47 (+55%). Excluding
the effects described above, EPS increased 11% (+14% at constant currency) to EUR 4.49.
On an adjusted basis, net income and EPS increased by 4% at constant currency.

North America growth affected by divestitures
In the fourth quarter 2018, North America segment revenue declined 6% to EUR 2,981
million (-9% at constant currency), reflecting the divestiture of Care Coordination
activities. On a comparable basis, excluding the effects caused by IFRS 15 and the revenueof Sound Physicians in the fourth quarter 2017, the segment grew by 8% (+5% at constantcurrency). Health Care Services revenue came in at EUR 2,746 million, of which Care
Coordination contributed EUR 291 million. Dialysis Care revenue reached EUR 2,455
million, a strong increase of 10% (+7% at constant currency). Health Care Products
revenue grew strongly by 10% to EUR 235 million (+7% at constant currency).
Operating income in North America in the fourth quarter 2018 was EUR 492 million, adecline of 19%. The operating income margin of 16.5% came in below 2017’s strong fourth
quarter margin of 19.2%. The Dialysis EBIT in North America fell 4% to EUR 498 million.
For the full year 2018, North America revenue was at EUR 11,570 million, down by 10%(-6% at constant currency). On a comparable basis (excluding the effects from IFRS 15
and the H2 2017 impact from Sound Physicians), revenue fell by 2% (+ 2% at constantcurrency). Reflecting the divestiture of Care Coordination activities, Health Care Services
revenue declined by 11% (-7% at constant currency) to EUR 10,725 million.
1

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

Page 6/13

Dialysis Care revenue decreased by 2% (+3% at constant currency) to EUR 9,089 million,
mainly due to increased organic revenue per treatment and growth in same-market
treatments, partially offset by the effect caused by IFRS 15. Care Coordination revenue fell
42% to EUR 1,636 million (-39% at constant currency).

Health Care Products revenue grew by a solid 5% in constant currency to EUR 845 million,
driven by higher sales of renal pharmaceuticals and products for peritoneal dialysis andhemodialysis.
Operating income increased by 28% to EUR 2,665 million (+33% at constant currency).
The operating income margin reached 23.0% (FY 2017: 16.2%). While the Care
Coordination margin was positively influenced by the divestiture of certain activities, themargin in the Dialysis business declined to 17.6% (FY 2017: 19.3%), primarily due to theeffect from the prior-year agreement with the U.S. Department of Veterans Affairs, themove of calcimimetic drugs in dialysis services, and lower revenue from commercial
payors.
At the end of 2018, 204,107 patients were being treated at the company’s 2,529 clinics inNorth America. Dialysis treatments increased by 3%.
At $354, revenue per treatment in the United States in 2018 was up by 4% due to themove of calcimimetic drugs, partially offset by lower revenue from commercial payors andhigher implicit price concessions. Cost per treatment increased by 6% to $289, largely
driven by the move of calcimimetic drugs and property-related costs, partially offset bylower costs for healthcare supplies.

Highest 5-Diamond Patient Safety results in the U.S. achieved
Nearly 100% of Fresenius Medical Care’s U.S. clinics achieved 5-Diamond status in the 5Diamond Patient Safety Program, compared with 93% of all participating providers. Nearly
44% of all dialysis providers participated. Participation in the 5-Diamond Patient Safety
Program is just one part of our commitment to delivering an exceptional patient
experience.

Page 7/13

Solid Health Care Services growth in EMEA
Revenue in the EMEA segment increased by 3% (+5% at constant currency) to EUR 679
million in the fourth quarter 2018. Health Care Services revenue increased by 6% (+9%at constant currency) to EUR 331 million, while Health Care Products revenue was flat at
EUR 348 million (+2% at constant currency). Non-dialysis products contributed revenueof EUR 18 million (Q4 2017: EUR 20 million). Operating income in EMEA decreased by 12%(-11% at constant currency) to EUR 97 million in the fourth quarter 2018, while theoperating income margin fell to 14.4% (Q4 2017: 16.7%).
For the full year 2018, EMEA revenue increased by 2% (+4% at constant currency) to EUR
2,587 million. Health Care Services revenue increased by 3% (+6% in constant currency),
based on same-market treatment growth and contributions from acquisitions. Health Care
Products revenue was stable at EUR 1,313 million (+2% at constant currency), driven byhigher sales of machines, products for acute care, renal pharmaceuticals, bloodlines andconcentrates, partially offset by lower sales of dialyzers as well as products for peritoneal
dialysis. Operating income decreased by 10% to EUR 399 million (-10% at constantcurrency). The operating income margin fell to 15.4% (FY 2017: 17.4%), mainly due toan impairment of intangible assets and higher personnel costs in certain countries.
At the end of 2018, 65,061 patients were being treated at the company’s 776 clinics in
EMEA. Dialysis treatments increased by 4%.

Strong year-end performance in Asia-PacificAsia-Pacific revenue grew strongly by 9% (+9% at constant currency) to EUR 454 million
in the fourth quarter 2018. At EUR 207 million, Health Care Services revenue in the region
increased by 8% (+7% at constant currency). The 9% (+11% constant currency) growth
in Health Care Products revenue to EUR 247 million was mainly supported by higher salesof products for chronic hemodialysis and acute care treatments. Operating income climbed
a strong 13% (+12% at constant currency) to EUR 86 million. The operating income marginrose to 18.8% (Q4 2017: 18.2%).
For the full year 2018, Asia-Pacific revenue grew by 4% (+8% at constant currency) to
EUR 1,689 million, mainly driven by same-market treatment growth and acquisitions.
Health Care Services contributed EUR 776 million. Health Care Products revenue of EUR
913 million was mainly supported by higher sales of products for chronic hemodialysis andacute care treatments. Operating income declined by 3% (-1% at constant currency) to
EUR 304 million, while the operating income margin was 18.0% (FY 2017: 19.3%).

Page 8/13

This development was primarily driven by unfavorable currency transaction effects,
partially offset by business growth in certain countries in the region.
At the end of 2018, 31,476 patients were being treated at the company’s 394 clinics inAsia-Pacific. Dialysis treatments increased by 3%.

Lower contribution from Latin America
Latin America revenue was EUR 182 million in the fourth quarter 2018, a decrease of 2%(and a strong increase of 33% at constant currency). Health Care Services revenue wasflat at EUR 129 million (+44% at constant currency). Health Care Products revenue
decreased by 5% (+8% at constant currency) to EUR 53 million. Operating income camein at EUR 5 million, 63% below 2017’s fourth quarter (-93% at constant currency). The
operating margin was 2.8% (Q4 2017: 7.4%).
For the full year 2018, Latin America revenue decreased by 5% (+22% at constantcurrency) to EUR 686 million. Revenue in Health Care Services was EUR 489 million, adecrease of 5% (+27% at constant currency) due to organic revenue increase driven byhyperinflation in Argentina, contributions from acquisitions, and same-market growth.
Health Care Products revenue of EUR 197 million decreased by 4% (+11% at constantcurrency), driven by higher sales of machines and acute and peritoneal dialysis products,
partially offset by lower sales in dialyzers. Operating income decreased by 51% (-65% atconstant currency) to EUR 29 million. The operating income margin was 4.2% (FY 2017:8.1%), mainly impacted by hyperinflation in Argentina and unfavorable currencytransaction effects.
At the end of 2018, Fresenius Medical Care treated 32,687 patients at 229 clinics in Latin
America. Dialysis treatments increased by 4%.

Solid operating cash flow
In the fourth quarter 2018, the company generated net cash provided by operating
activities of EUR 698 million, representing 16.2% of revenue (Q4 2017: EUR 528 million).
The increase was primarily attributable to a favorable development of trade accounts
receivables due to a positive development of DSO and lower income tax payments.
In the full year 2018, the company generated net cash provided by operating activities
of EUR 2,062 million, compared with EUR 2,192 million for the full year 2017. This
represents 12.5% of revenue, clearly exceeding our 2018 target of more than 10%. The

Page 9/13

slight decrease in net cash provided by operating activities was largely driven by the 2017
payment under the VA agreement, increased inventory levels and a discretionary
contribution to plan assets in the U.S., partially offset by lower income tax payments. Free
cash flow reached EUR 1,059 million (FY 2017: EUR 1,351 million). DSO as of December
31, 2018 was 75 days, the same level as at the end of 2017.

Press Conference
Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg,
Germany to discuss the results of the fourth quarter and full year 2018 on Wednesday,
February 20, 2018, at 10 a.m. CET. The press conference will be webcast in the media
center of the company's website www.freseniusmedicalcare.com. A replay will be available
shortly after the conference.

Conference callFresenius Medical Care will hold a conference call to discuss the results of the fourth quarterand full year 2018 on Wednesday, February 20, at 3:30 p.m. CET / 9:30 a.m. EDT. The
company invites investors to follow the live webcast of the call on the company’s website
www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available
shortly after the call.
Please refer to our statement of earnings included at the end of this news and to theattachments as separate PDF file for a complete overview of the results for the fourth
quarter and full year 2018.
Fresenius Medical Care is the world's largest provider of products and services for individuals
with renal diseases of which around 3.4 million patients worldwide regularly undergo dialysis
treatment. Through its network of 3,928 dialysis clinics, Fresenius Medical Care provides dialysis
treatments for 333,331 patients around the globe. Fresenius Medical Care is also the leading
provider of dialysis products such as dialysis machines or dialyzers. Along with the corebusiness, the company focuses on expanding the range of related medical services in the fieldof Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME)and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.

Page 10/13

Disclaimers
This release contains forward-looking statements that are subject to various risks anduncertainties. Actual results could differ materially from those described in these forwardlooking statements due to various factors, including, but not limited to, changes in business,
economic and competitive conditions, legal changes, regulatory approvals, results of clinicalstudies, foreign exchange rate fluctuations, uncertainties in litigation or investigative
proceedings, and the availability of financing. These and other risks and uncertainties aredetailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities andExchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any
responsibility to update the forward-looking statements in this release.

Statement of earningsin € million, except share data, audited

Three months ended December 31
2017

Health Care Services
Health Care Products
Revenue

3,413
887
4,300

3,581
848
4,429

-4.7%
4.7%
-2.9%

-5.4%
6.1%
-3.2%

Revenue on a comparable basis
Revenue adjusted

4,300

4,024

6.8%

6.5%

4,300

4,025

6.8%

6.5%

Costs of revenue
Gross profit
Selling, general and administrative(Gain) loss related to divestitures of Care Coordination activities
Research and development
Income from equity method investees
Operating income (EBIT)
Operating income (EBIT) on a comparable basis
Operating income (EBIT) adjusted

2,920
1,380
729
21
38
(21)
613
648
648

2,921
1,508
990
(21)
36
(16)
519
456
663

-0.1%
-8.4%
-26.3%
n.a.
7.1%
30.0%
18.1%
42.2%
-2.2%

0.1%
-9.6%
-26.9%
n.a.
6.4%
29.7%
11.6%
39.1%
-4.4%

Interest expense, net
Income before taxes
Income tax expense

58
555
63

80
439
(30)

-27.8%
26.4%
n.a.

-30.1%
19.1%
n.a.

Net income
Less: Net income attributable to noncontrolling interests
Net income1

492

469

5.0%

-1.5%

67
425

75
394

-10.2%
7.9%-12.3%
0.5%

1

408

361

12.8%

9.2%

1

353

325

8.4%

4.0%

306,858,573

306,908,491

Basic earnings per share
Basic earnings per share on a comparable basis
Basic earnings per share adjusted

€1.38
€1.33
€1.15

€1.28
€1.18
€1.06

7.9%
12.9%
8.4%

0.6%
9.2%
4.1%

In percent of revenue
Operating income (EBIT)
Operating income (EBIT) on a comparable basis
Operating income (EBIT) adjusted

14.3%
15.1%
15.1%

11.7%
11.3%
16.5%

Net income on a comparable basis
Net income adjusted
Weighted average number of shares

1

Attributable to shareholders of FMC AG & Co. KGaA

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

Page 11/13

ChangeChangeat cc

2018

Statement of earningsin € million, except share data, audited

Twelve months ended December 31
2017

Health Care Services
Health Care Products
Revenue

13,264
3,283
16,547

14,532
3,252
17,784

-8.7%
0.9%
-7.0%

-3.8%
5.0%
-2.2%

Revenue on a comparable basis
Revenue adjusted

16,547

16,739

-1.2%

3.9%

16,547

16,645

-0.6%

4.5%

Costs of revenue
Gross profit
Selling, general and administrative(Gain) loss related to divestitures of Care Coordination activities
Research and development
Income from equity method investees
Operating income (EBIT)
Operating income (EBIT) on a comparable basis
Operating income (EBIT) adjusted

11,392
5,155
2,865
(809)
134
(73)
3,038
2,346
2,346

11,765
6,019
3,619
(26)
131
(67)
2,362
2,278
2,409

-3.2%
-14.3%-20.8%
n.a.
2.2%
9.1%
28.6%
3.0%
-2.6%

2.2%
-10.8%-17.1%
n.a.
3.7%
9.5%
33.1%
6.3%
0.5%

Interest expense, net
Income before taxes

301
2,737
511

365
1,997
443

-17.5%
37.0%
15.3%-14.4%
41.8%
20.7%

Net income
Less: Net income attributable to noncontrolling interests
Net income1

2,226

1,554

43.2%

47.8%

244
1,982

274
1,280

-11.3%
54.9%

-7.3%
59.7%

Net income 1 on a comparable basis
Net income 1 adjusted

1,377
1,185

1,242
1,162

10.8%
2.0%

13.7%
4.3%

54.9%
10.8%
2.0%

59.7%
13.8%
4.3%

Income tax expense

Weighted average number of shares

306,541,706 306,563,400

Basic earnings per share
Basic earnings per share on a comparable basis
Basic earnings per share adjusted

€6.47
€4.49
€3.86

€4.17
€4.05
€3.79

In percent of revenue
Operating income (EBIT)
Operating income (EBIT) on a comparable basis
Operating income (EBIT) adjusted

18.4%
14.2%
14.2%

13.3%
13.6%
14.5%

1

Attributable to shareholders of FMC AG & Co. KGaA

For a reconciliation of adjusted figures, please refer to the table at the end of the press release.

Page 12/13

ChangeChangeat cc

2018

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measuresin € million, audited

Three months ended
December 31

Twelve months ended
December 31

2018

2017

2018

2017

4,300

4,429

16,547

17,784

4,300

(100)
(305)
4,024

16,547(486)(559)
16,739

4,300

1
4,025

16,547(94)
16,645

Operating income (EBIT)(Gain) loss related to divestitures of Care Coordination activities
1
Sound H2 20172018 FCPA Related Charge
U.S. Ballot Initiatives 3
Operating income (EBIT) on a comparable basis
VA Agreement 2
Natural Disaster Costs 4
2017 FCPA Related Charge
Operating income (EBIT) adjusted

613

519

3,038

2,362

648

456
1
6
200
663

Net income5(Gain) loss related to divestitures of Care Coordination activities
Sound H2 2017 1
2018 FCPA Related Charge
U.S. Ballot Initiatives 3
Net income5 on a comparable basis
VA Agreement 2
4
Natural Disaster Costs
2017 FCPA Related Charge
U.S. Tax Reform (excl. Sound H2 2017)6
Net income5 adjusted

425

394

Operating performance on a comparable basis and adjusted
Revenue
IFRS 15 Implementation
1
Sound H2 2017
Revenue on a comparable basis
VA Agreement 2
Revenue adjusted

21

(809)
(63)

2
12
648

17

(84)
77
40
2,346

2,346

2,278
(87)
18
200
2,409

1,982

1,280

(673)
(33)

(47)
13
408

361

(55)
353

1
3
200
(240)
325

(38)
28
40
1,377

1,242

(192)
1,185

(51)
11
200
(240)
1,162

1

Sound H2 2017: contribution of Sound Physicians
VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice3
U.S. Ballot Initiatives: contributions to the opposition to the ballot initiatives in the U.S.
4
Natural Disaster Costs: three hurricanes and an earthquake
5
Attributable to shareholders of FMC AG & Co. KGaA
6
U.S. Tax Reform: impacts from U.S. tax reform2

Basis for Targets 2019in € million, audited

Revenue
1
Sound H1 2018
Revenue adjusted
2

Net income
Sound H1 2018 1(Gain) loss related to divestitures of Care Coordination activities
2018 FCPA related charge
2

Net income adjusted
1
2

Contribution of Sound Physicians
Attributable to shareholders of FMC AG & Co. KGaA

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2018

Targets 201916,547(521)
16,026Growth: 3 - 7% cc

1,982
4
(673)
28
1,341

Growth: (2) - 2% cc