Exhibit 99.3

 

 

 

Fresenius Medical Care AG & Co. KGaA

 

COMPLETE OVERVIEW OF THE THIRD QUARTER AND FIRST NINE MONTHS 2022

 

October 30, 2022

 

 

Investor Relations 

phone: +49 6172 609 2525 

email: ir@fmc-ag.com

 

Content:   
    
Statement of earnings  page 2
Segment information  page 3
Balance sheet  page 4
Cash flow  page 5
Revenue development  page 6
Key metrics  page 7
Quality data  page 8
Reconciliation results excl. special items  page 9
Outlook 2022  page 10

 

Disclaimer

 

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

 

Copyright by Fresenius Medical Care AG & Co. KGaA

 

 

 

 

 

 

Statement of earnings

 

  Three months ended September 30,   Nine months ended September 30, 
in € million, except share data, unaudited  2022   2021   Change   Change
at cc		   2022   2021   Change   Change
at cc		 
Health Care Services   4,082    3,530    15.7%   2.4%   11,471    10,255    11.9%   1.9%
Health Care Products   1,014    911    11.2%   4.3%   2,930    2,717    7.9%   2.9%
Total revenue   5,096    4,441    14.7%   2.8%   14,401    12,972    11.0%   2.1%
                                         
Costs of revenue   3,737    3,174    17.8%   5.4%   10,438    9,214    13.3%   4.0%
Gross profit   1,359    1,267    7.2%   -3.7%   3,963    3,758    5.5%   -2.6%
Selling, general and administrative   990    731    35.3%   21.7%   2,830    2,273    24.5%   15.2%
Research and development   61    52    17.4%   10.0%   167    153    8.9%   3.4%
Income from equity method investees   (17)   (21)   -17.1%   -17.7%   (47)   (71)   -33.6%   -33.8%
Remeasurement Gain From InterWell Health   (147)   —              (147)   —           
Operating income   472    505    -6.5%   -16.5%   1,160    1,403    -17.3%   -24.4%
Operating income excl. special items 1   470    513    -8.5%   -17.6%   1,322    1,423    -7.1%   -14.4%
                                         
Interest income   (16)   (16)   3.0%   -15.6%   (43)   (45)   -4.2%   -5.8%
Interest expense   92    84    10.1%   -3.6%   260    259    0.6%   -7.1%
Interest expense, net   76    68    11.8%   -0.8%   217    214    1.6%   -7.4%
Income before taxes   396    437    -9.4%   -19.0%   943    1,189    -20.7%   -27.5%
Income tax expense   112    105    6.9%   -3.7%   242    274    -11.8%   -18.9%
Net income   284    332    -14.6%   -23.8%   701    915    -23.4%   -30.0%
Net income attributable to noncontrolling interests   54    59    -9.2%   -22.5%   166    174    -4.9%   -15.3%
Net income attributable to shareholders of FMC AG & Co. KGaA    230    273    -15.7%   -24.1%   535    741    -27.8%   -33.5%
Net income attributable to shareholders of FMC AG & Co. KGaA excl. special items 1   231    280    -17.2%   -24.6%   660    756    -12.6%   -18.5%
                                         
Operating income   472    505    -6.5%   -16.5%   1,160    1,403    -17.3%   -24.4%
Depreciation, amortization and impairment loss   502    402    24.6%   11.3%   1,344    1,187    13.2%   3.9%
EBITDA   974    907    7.3%   -4.2%   2,504    2,590    -3.3%   -11.5%
                                         
Weighted average number of shares   293,413,449    292,986,093              293,190,145    292,926,425           
                                         
Basic earnings per share  €0.78   €0.93    -15.9%   -24.2%  €1.82   €2.53    -27.9%   -33.6%
Basic earnings per ADS  €0.39   €0.47    -15.9%   -24.2%  €0.91   €1.26    -27.9%   -33.6%
                                         
In percent of revenue                                        
Operating income margin   9.3%   11.4%             8.1%   10.8%          
Operating income margin excl. special items 1   9.2%   11.6%             9.2%   11.0%          
EBITDA margin   19.1%   20.4%             17.4%   20.0%              

 

1 For a reconciliation of special items, please refer to the table on page 9.

 

Statement of earningspage 2 of 10October 30, 2022

 

 

 

 

Segment information

 

  Three months ended September 30,   Nine months ended September 30, 
unaudited  2022   2021   Change   Change
at cc		   2022   2021   Change   Change
at cc		 
Total                                        
Revenue in € million   5,096    4,441    14.7%   2.8%   14,401    12,972    11.0%   2.1%
Operating income in € million   472    505    -6.5%   -16.5%   1,160    1,403    -17.3%   -24.4%
Operating income margin   9.3%   11.4%             8.1%   10.8%          
Days sales outstanding (DSO)                       69    59           
Employees (full-time equivalents)                       122,758    123,528           
                                         
North America                                        
Revenue in € million   3,556    3,080    15.5%   -1.0%   10,021    8,931    12.2%   -0.2%
Operating income in € million   469    446    5.1%   -8.0%   1,113    1,242    -10.4%   -19.8%
Operating income margin   13.2%   14.5%             11.1%   13.9%          
Days sales outstanding (DSO)                       55    38           
                                         
EMEA                                        
Revenue in € million   720    671    7.3%   8.3%   2,121    2,033    4.3%   5.9%
Operating income in € million   48    79    -39.6%   -40.9%   169    232    -27.3%   -26.1%
Operating income margin   6.6%   11.7%             8.0%   11.4%          
Days sales outstanding (DSO)                       89    89           
                                         
Asia-Pacific                                        
Revenue in € million   565    501    12.7%   7.2%   1,588    1,458    8.9%   4.3%
Operating income in € million   85    86    -1.3%   -2.0%   255    256    -0.3%   -1.2%
Operating income margin   15.1%   17.2%             16.1%   17.5%          
Days sales outstanding (DSO)                       102    104           
                                         
Latin America                                        
Revenue in € million   243    178    36.4%   36.3%   633    508    24.7%   23.2%
Operating income in € million   11    4    149.7%   130.3%   16    14    16.5%   -6.5%
Operating income margin   4.5%   2.4%             2.5%   2.7%          
Days sales outstanding (DSO)                       116    143           
                                         
Corporate                                        
Revenue in € million   12    11    7.9%   -1.4%   38    42    -7.8%   -13.6%
Operating income in € million   (141)   (110)   27.1%   17.6%   (393)   (341)   15.4%   9.5%

 

cc = constant currency. Changes in revenue, operating income, net income attributable to shareholders of FMC AG & Co. KGaA and other items include the impact of changes in foreign currency exchange rates. We calculate these non-IFRS financial measures at constant exchange rates to show changes in our revenue, operating income, net income attributable to shareholders of FMC AG & Co. KGaA and other items without giving effect to period-to-period currency fluctuations. Under IFRS, amounts received in local (non-euro) currency are translated into euro at the average exchange rate for the period presented. Once we translate the local currency for the constant currency, we then calculate the change, as a percentage, of the current period using the prior period exchange rates versus the prior period. The single quarter results are calculated as the variance between the current year-to-date results less the preceding quarter’s year-to-date which makes the single quarter subject to further foreign exchange fluctuation. This resulting percentage is a non-IFRS measure referring to a change as a percentage at constant currency. These currency-adjusted financial measures are identifiable by the designated term "Constant Currency".

 

Segment informationpage 3 of 10October 30, 2022

 

 

 

 

 

Balance sheet

 

   September 30   December 31 
in € million, except for net leverage ratio, unaudited  2022   2021 
Assets          
Current assets   8,513    7,967 
Goodwill and intangible assets   18,791    15,821 
Right of use assets   4,571    4,316 
Other non-current assets   6,531    6,263 
Total assets   38,406    34,367 
           
Liabilities and equity          
Current liabilities   6,357    7,258 
Non-current liabilities   15,314    13,130 
Total equity   16,735    13,979 
Total liabilities and equity   38,406    34,367 
           
Equity/assets ratio   44%   41%
           
Debt and lease liabilities          
Short-term debt from unrelated parties   544    1,178 
Short-term debt from related parties   39    78 
Current portion of long-term debt   58    668 
Current portion of lease liabilities from unrelated parties   710    640 
Current portion of lease liabilities from related parties   22    21 
Long-term debt, less current portion   8,068    6,647 
Lease liabilities from unrelated parties, less current portion   4,262    3,990 
Lease liabilities from related parties, less current portion   83    98 
Total debt and lease liabilities   13,786    13,320 
Minus: Cash and cash equivalents   (1,114)   (1,482)
Total net debt and lease liabilities   12,672    11,838 
           
Reconciliation of annualized adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measures          
Net income   1,004    1,219 
Income tax expense   321    353 
Interest income   (71)   (73)
Interest expense   355    353 
Depreciation and amortization   1,693    1,586 
Adjustments1   214    125 
Annualized adjusted EBITDA   3,516    3,563 
           
Net leverage ratio   3.6    3.3 

 

1 Acquisitions and divestitures made for the last twelve months with a purchase price above a €50 M threshold as defined in the Syndicated Credit Facility (2022: -€27 M; 2021: €13 M), non-cash charges, primarily related to pension expense (2022: €52 M; 2021: €49 M), impairment loss (2022: €88 M; 2021: €38 M) and special items, including costs related to the FME25 Program (2022: €106 M; 2021: €25 M), Net Gain Related to InterWell Health (2022: -€113 M), Humacyte Investment Remeasurement (2022: €79 M), Hyperinflation in Turkiye (2022: €6 M) and the Impacts Related to the War in Ukraine (2022: €23 M).

 

Balance sheetpage 4 of 10October 30, 2022

 

 

 

 

Cash flow statement

 

   Three months ended September 30,   Nine months ended September 30, 
in € million, unaudited  2022   2021   2022   2021 
Operating activities                    
Net income   284    332    701    915 
Depreciation, amortization and impairment loss   502    402    1,344    1,187 
Change in working capital and other non-cash items   (128)   (42)   (477)   (282)
Net cash provided by (used in) operating activities   658    692    1,568    1,820 
In percent of revenue   12.9%   15.6%   10.9%   14.0%
                     
Investing activities                    
Purchases of property, plant and equipment and capitalized development costs   (160)   (194)   (495)   (588)
Proceeds from sale of property, plant and equipment   3    13    9    27 
Capital expenditures, net   (157)   (181)   (486)   (561)
                     
Free cash flow   501    511    1,082    1,259 
In percent of revenue   9.8%   11.5%   7.5%   9.7%
                     
Acquisitions and investments, net of cash acquired, and purchases of intangible assets   21    (142)   (40)   (270)
Investments in debt securities   (6)   0    (92)   (63)
Proceeds from divestitures   16    0    56    3 
Proceeds from sale of debt securities   25    22    52    118 
Free cash flow after investing activities   557    391    1,058    1,047 

 

Cash flow page 5 of 10October 30, 2022

 

 

 

 

Revenue development

 

in € million, unaudited  2022   2021   Change   Change
at cc		   Organic
growth		   Same
market
treatment
growth1		 
Three months ended September 30,                              
Total revenue   5,096    4,441    14.7%   2.8%   2.1%     
Health Care Services   4,082    3,530    15.7%   2.4%   1.6%   -1.3%
Health Care Products   1,014    911    11.2%   4.3%   4.3%     
                               
North America   3,556    3,080    15.5%   -1.0%   -1.9%     
Health Care Services   3,269    2,810    16.3%   -0.3%   -1.3%   -2.4% 2 
Health Care Products   287    270    6.4%   -9.0%   -9.0%     
                               
EMEA   720    671    7.3%   8.3%   8.2%     
Health Care Services   377    346    8.7%   8.5%   8.4%   0.5%
Health Care Products   343    325    5.8%   8.1%   8.0%     
                               
Asia-Pacific   565    501    12.7%   7.2%   7.0%     
Health Care Services   256    239    7.2%   4.9%   4.6%   2.5%
Health Care Products   309    262    17.8%   9.2%   9.2%     
                               
Latin America   243    178    36.4%   36.3%   37.1%     
Health Care Services   173    126    37.1%   41.6%   42.8%   -0.7%
Health Care Products   70    52    34.6%   23.4%   23.4%     
                               
Corporate   12    11    7.9%   -1.4%          
Health Care Services   7    9    -6.2%   -18.9%          
Health Care Products   5    2    41.3%   40.0%          
                               
Nine months ended September 30,                              
Total revenue   14,401    12,972    11.0%   2.1%   1.3%     
Health Care Services   11,471    10,255    11.9%   1.9%   0.9%   -1.4%
Health Care Products   2,930    2,717    7.9%   2.9%   2.9%     
                               
North America   10,021    8,931    12.2%   -0.2%   -1.3%     
Health Care Services   9,184    8,148    12.7%   0.2%   -0.9%   -2.3% 2 
Health Care Products   837    783    6.8%   -5.0%   -5.0%     
                               
EMEA   2,121    2,033    4.3%   5.9%   5.6%     
Health Care Services   1,083    1,020    6.2%   6.7%   6.2%   -0.1%
Health Care Products   1,038    1,013    2.4%   5.0%   4.9%     
                               
Asia-Pacific   1,588    1,458    8.9%   4.3%   4.1%     
Health Care Services   730    694    5.1%   3.3%   2.8%   2.2%
Health Care Products   858    764    12.4%   5.3%   5.3%     
                               
Latin America   633    508    24.7%   23.2%   23.7%     
Health Care Services   452    364    24.1%   25.8%   26.6%   -1.4%
Health Care Products   181    144    26.3%   16.5%   16.5%     
                               
Corporate   38    42    -7.8%   -13.6%          
Health Care Services   22    29    -21.5%   -29.6%          
Health Care Products   16    13    24.6%   24.1%          

 

1 Same market treatment growth = organic growth less price effects

 

2 U.S. (excl. Mexico), same market treatment growth North America: -2.5% for the three months and -2.3% for the nine months ended September 30, 2022.

 

Revenue developmentpage 6 of 10October 30, 2022

 

 

 

 

Key metrics Dialysis Care Services

 

   Nine months ended September 30, 2022 
unaudited  Clinics   Growth
in %		   De novos   Patients   Growth
in %		   Treatments   Growth
in %		 
Total   4,153    0%   35    344,593    0%   39,152,144    -1%
North America   2,699    1%   20    208,275    -1%   23,816,538    -1%
EMEA   814    0%   5    66,293    1%   7,428,380    1%
Asia-Pacific   397    -2%   8    33,800    1%   3,613,229    1%
Latin America   243    -1%   2    36,225    -1%   4,293,997    -3%

 

Key metricspage 7 of 10October 30, 2022

 

 

 

 

Quality data1                
  North America   EMEA   Latin America   Asia-Pacific 
in % of patients  Q3 2022   Q3 2021   Q3 2022   Q3 2021   Q3 2022   Q3 2021   Q3 2022   Q3 2021 
Kt/V ≥ 1.2   98    97    93    93    93    94    95    94 
Hemoglobin = 10-12 g/dl   71    71    81    81    48    48    52    51 
Calcium = 8.4-10.2 mg/dl   84    83    81    80    78    74    72    70 
Albumin ≥ 3.5 g/dl   85    81    89    89    92    90    89    88 
Phosphate ≤ 5.5 mg/dl   59    57    78    78    81    76    69    67 
Patients without catheter                                        
(after 90 days)   76    78    76    77    77    78    79    80 
                                         
in days                                        
Days in hospital per patient year                                        
(global basis)   10.7    11.3    (Q3 2021)                          

 

1 Definitions cf. Annual Report 2021, Section "Non-Financial Group Report"

 

Quality datapage 8 of 10October 30, 2022

 

 

 

 

Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures for comparability with the Company´s outlook

 

                                                                Results excl. special items
in € million, except share data, unaudited   Results
2022		     FME25
Program		     Net Gain
Related to
InterWell
Health1		     Humacyte
Investment
Remeasurement		     Ukraine
War2		     Hyperinflation
in Turkiye		     Results 2022
excl. special
items		     Results
2021		     FME25
program		     Results 2021
excl. special
items		     Change     Change
at cc		  
Three months ended September 30,                                                                        
Total revenue     5,096                                               5,096       4,441               4,441       14.7 %     2.8 %
                                                                                                 
EBITDA     974       52       (113 )     1       0       0       914       907       9       916       -0.3 %     -10.6 %
                                                                                                 
Total operating income     472       53       (56 )     1       0       0       470       505       8       513       -8.5 %     -17.6 %
North America     469       16       (56 )     1       —       —       430       446       3       449       -4.3 %     -16.7 %
EMEA     48       9       —       —       0       1       58       79       —       79       -26.8 %     -25.1 %
Asia-Pacific     85       0       —       —       —       —       85       86       —       86       -1.3 %     -2.0 %
Latin America     11       3       —       —       —       —       14       4       —       4       219.3 %     191.6 %
Corporate     (141 )     25       —       —       —       (1 )     (117 )     (110 )     5       (105 )     10.8 %     2.2 %
                                                                                                 
Interest expense, net     76                                               76       68               68       11.8 %     -0.8 %
                                                                                                 
Income tax expense     112       15       (18 )     0       0       —       109       105       1       106       1.8 %     -7.6 %
                                                                                                 
Net income attributable to noncontrolling interests     54                                               54       59               59       -9.2 %     -22.5 %
                                                                                                 
Net income3     230       38       (38 )     1       0       0       231       273       7       280       -17.2 %     -24.6 %
                                                                                                 
Basic earnings per share   € 0.78     € 0.13     € (0.13 )   € 0.01     € 0.00     € 0.00     € 0.79     € 0.93     € 0.02     € 0.95       -17.3 %     -24.7 %
                                                                                                 
Nine months ended September 30,                                                                                                
Total revenue     14,401                                               14,401       12,972               12,972       11.0 %     2.1 %
                                                                                                 
EBITDA     2,504       101       (113 )     79       23       6       2,600       2,590       20       2,610       -0.4 %     -8.3 %
                                                                                                 
Total operating income     1,160       109       (56 )     79       24       6       1,322       1,403       20       1,423       -7.1 %     -14.4 %
North America     1,113       36       (56 )     79       —       —       1,172       1,242       6       1,248       -6.1 %     -16.0 %
EMEA     169       14       —       —       24       7       214       232       —       232       -7.9 %     -4.0 %
Asia-Pacific     255       0       —       —       —       —       255       256       —       256       -0.2 %     -1.1 %
Latin America     16       3       —       —       —       —       19       14       —       14       38.9 %     13.2 %
Corporate     (393 )     56       —       —       —       (1 )     (338 )     (341 )     14       (327 )     3.5 %     -1.8 %
                                                                                                 
Interest expense, net     217                                               217       214               214       1.6 %     -7.4 %
                                                                                                 
Income tax expense     242       31       (18 )     21       3       —       279       274       5       279       -0.3 %     -8.0 %
                                                                                                 
Net income attributable to noncontrolling interests     166                                               166       174               174       -4.9 %     -15.3 %
                                                                                                 
Net income3     535       78       (38 )     58       21       6       660       741       15       756       -12.6 %     -18.5 %
                                                                                                 
Basic earnings per share   € 1.82     € 0.27     € (0.13 )   € 0.20     € 0.07     € 0.02     € 2.25     € 2.53     € 0.05     € 2.58       -12.7 %     -18.6 %

 

1 Remeasurement gain of the investment, prior to the transaction, in InterWell Health LLC, the impairment of certain long-lived assets belonging to Acumen Physician Solutions, LLC which was transferred to InterWell Health as part of the transaction and certain transaction-related costs.

 

2 Bad debt expense in Russia and Ukraine and accruals for certain risks associated with allowances on inventories related to the Ukraine War.

 

3 Attributable to shareholders of FMC AG & Co. KGaA

 

Reconciliation results excl. special itemspage 9 of 10October 30, 2022

 

 

 

 

Outlook 2022

 

      Revised Outlook 2022  Previous Outlook 2022
   Results 2021  (at Constant Currency, except for ROIC)  (at Constant Currency, except for ROIC)
Revenue1  €17,619 M  growth: low-single-digit percentage rate  growth: low-single-digit percentage rate
Revenue growth at Constant Currency1     growth: low-single-digit percentage rate  growth: low-single-digit percentage rate
Operating income1  €1,915 M  decline: mid-teens to high-teens percentage rate  decline: around mid-teens percentage rate
Net income1, 2  €1,018 M  decline: high-teens to mid-twenties percentage rate  decline: around high-teens percentage rate
Net income2 growth at Constant Currency1     decline: high-teens to mid-twenties percentage rate  decline: around high-teens percentage rate
ROIC1  5.1%  around 4.0%  ≥ 4.0%

 

1 Outlook 2022 is based on the assumptions outlined in the presentation for the third quarter and first nine months 2022 and excludes special items. Special items include further costs related to the FME25 Program, net gain related to InterWell Health, Humacyte investment remeasurement, hyperinflation in Turkiye, the impacts related to the war in Ukraine and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. The growth rates are based on the results 2021 excluding the costs related to the FME25 Program (€63 M for operating income and €49 M for net income).

 

2 Net income attributable to shareholders of FMC AG & Co. KGaA.

 

Outlook 2022page 10 of 10October 30, 2022