FY 2020 PRESS CONFERENCE FEBRUARY 23, 2021 - Rice Powell Chief Executive Officer
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FY 2020
PRESS CONFERENCE
FEBRUARY 23, 2021
Rice Powell Chief Executive Officer
Frank Maddux Global Chief Medical Officer
© 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
OUR CONTRIBUTION TO THE FIGHT AGAINST COVID-19
PROTECTING PATIENTS AND EMPLOYEES PROVIDING LIFE-SAVING PRODUCTS
▪ Dialysis patients among the most at-risk ▪ Leveraging expertise in critical care and innovative
populations solutions for multi-organ support to provide critically
▪ Comprehensive protective measures to maintain ill patients with the best possible care
safe operations and reduce infection risks in more ▪ Pandemic caused demand for acute dialysis machines
than 4,000 dialysis centers and 44 production sites and disposables to soar
▪ Strong network and vertical integration decisive for ▪ Production capacity for multi-FiltratePRO acute
fostering patient’s well-being dialysis machines more than tripled in peak times
© │ Press Conference │ FY 2020 02/23/2021 Page 3
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
© │ Press Conference │ FY 2020 02/23/2021 Page 4
1 STRATEGY UPDATE
2 MEDICAL UPDATE
AGENDA
3 FY 2020 & OUTLOOK
1 STRATEGY UPDATE
2 MEDICAL UPDATE
AGENDA
3 FY 2020 & OUTLOOK
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
© │ Press Conference │ FY 2020 02/23/2021 Page 7
2025 | MID-TERM 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
© │ Press Conference │ FY 2020 02/23/2021 Page 82020 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
© │ Press Conference │ FY 2020 02/23/2021 Page 91 STRATEGY UPDATE
2 MEDICAL UPDATE
AGENDA
3 FY 2020 & 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.
© │ Press Conference │ FY 2020 02/23/2021 Page 11PATTERN OF EXCESS DEATHS DUE TO COVID | 2020 VS. 2019
Δ = 3,705
Δ = 2,934
Δ = 2,739
Δ = 1,001
Excess deaths due to
COVID-19 were 10,379
in 2020 compared to
traditional seasonal trends
Q1 Q2 Q3 Q4 for 2019
TOTAL: 2019 TOTAL: 2020
© │ Press Conference │ FY 2020 02/23/2021 Page 12WHAT WAS THE IMPACT ON THE DEMOGRAPHICS OF OUR PATIENTS?
NORTH AMERICA
2020 2019 2018 ▪ This does not yet
support a hypothesis
Age (years) 62.8 62.8 62.6 that the mortality
rate will be less than
Diabetes % 64.0 63.7 62.9
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
© │ Press Conference │ FY 2020 02/23/2021 Page 13GENERAL PERCENT OF POPULATION VACCINATED BY REGION
North
America
8
6
Europe Population (or “herd”)
immunity requires
4 70-85% of the
population to have
South immunity from either
2 America vaccination or
Asia exposure
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)
© │ Press Conference │ FY 2020 02/23/2021 Page 141 STRATEGY UPDATE
2 MEDICAL UPDATE
AGENDA
3 FY 2020 & OUTLOOKFY 2020 | MAINTAINING GROWTH IN A CHALLENGING YEAR
Financial targets for 2020 achieved
Q4 impacted by:
▪ Impairment of goodwill and trade names
in Latin America resulting from macro-
economic downturn
▪ 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
© │ Press Conference │ FY 2020 02/23/2021 Page 16FY 2020 | STRONG NET INCOME PERFORMANCE
2020: YOY growth at cc: 2020 target:
Revenue
▪ Revenue growth at
€17,859m 5% Mid to high constant currency in
single digit line with FY 2020
Growth in % at cc
guidance
▪ Net income growth at
Net income
2020 excl. YOY growth at cc 2020 target:
special items: vs. 2019 adjusted: constant currency
Mid to high exceeds target range
€1,236m 12% single digit
Growth in % at cc ▪ Impairment in the
Latin America
cc = at constant currency
Segment excluded
Special items are effects that are unusual in nature and have not been foreseeable or not foreseeable in size or
from 2020 figures
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 trade names (€ 195m)
© │ Press Conference │ FY 2020 02/23/2021 Page 17FY 2020 | ORGANIC GROWTH IN ALL REGIONS
NORTH AMERICA € million NORTH AMERICA
EMEA
70%
Revenue 12,478 2% 15%
Organic growth 2% €m
17,859 ASIA-PACIFIC
11%
EMEA € million +3%
(Organic)
Revenue 2,763 3%
Organic growth 4% LATIN AMERICA
4%
ASIA-PACIFIC € million
Revenue 1,894 2%
▪ All segments contribute to organic growth
Organic growth 4% ▪ Revenue development in North America,
Asia-Pacific and Latin America negatively
affected by COVID-19 pandemic
LATIN AMERICA € million
Revenue 684 (3)%
▪ Unfavorable currency effects in all
regions
Organic growth 15%
© │ Press Conference │ FY 2020 02/23/2021 Page 18FY 2020 | SERVICES
EMEA
10%
NORTH AMERICA
81% €m ASIA-PACIFIC
14,114 6%
+3%
(Organic)
LATIN
AMERICA
3%
▪ Health Care Services accounted for
79% of revenue in 2020
Organic growth of 3% achieved despite
▪▪ xxx
COVID-19 pandemic and expected lower
reimbursement for certain
pharmaceuticals
© │ Press Conference │ FY 2020 02/23/2021 Page 19FY 2020 | PRODUCTS
NORTH
EMEA AMERICA
38% €m 30%
3,745
+5%
(Organic)
LATIN AMERICA ASIA-PACIFIC
5% 27%
▪ Health Care Products accounted for
21% of revenue in 2020
▪ Higher sales of acute care products due
to the COVID-19 pandemic
▪ Lower sales of machines for chronic
treatment
© │ Press Conference │ FY 2020 02/23/2021 Page 20DIVIDEND INCREASE PLANNED TO BE PROPOSED
DIVIDEND PER SHARE IN EUR
+11.7%
5Y-CAGR: +10.9% 1.341
DIVIDEND 2020
1.20
1.17
▪ 24th consecutive
1.06 dividend increase
0.96 planned to be
proposed
0.80 ▪ Planned dividend
proposal would
ensure 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
© │ Press Conference │ FY 2020 02/23/2021 Page 212021 | TAIL- AND HEADWINDS
TAILWINDS
▪ Growth in value-based care programs
▪ Medicare Advantage
▪ Higher adoption of home dialysis
▪ Effect from completion of cost
optimization measures
HEADWINDS
▪ COVID-19 impact on treatment volumes
and costs
▪ Reduced clinic utilization limits ability to
absorb wage and fixed cost inflation
▪ COVID-19 related savings realized in 2020
▪ Certain pharmaceuticals
▪ Currency transaction effects
© │ Press Conference │ FY 2020 02/23/2021 Page 222021 TARGETS
REVENUE NET INCOME Assumptions:
(constant currency (constant currency ▪ Excess mortality to continue to
growth in %) decline in %) accumulate in the first half of 2021
▪ COVID-19-related additional costs in the
+ - Dialysis Services business to remain on
high level
▪ No further public relief funding assumed
Low to mid- High-teens to
single digits mid-twenties Excluding special items:
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
2020: EUR 1,359m giving guidance.1
2020: EUR 17,859m
1 Special items include costs related to the FME25 program
© │ Press Conference │ FY 2020 02/23/2021 Page 23TRANSFORMATION OF THE OPERATING MODEL | FME25
▪ FME25 to be launched in 2021 to support our 2025
strategy, further strengthen profitability and
compensate for COVID-19 effects
▪ Invest up to €500m by 2025 to sustainably reduce
the cost base and minimally improve operating
FME25
income by the same amount
▪ The Company expects for each euro invested in
FME25 to sustainably reduce the annual cost; FME25
addresses the simplification of the Fresenius Medical
Care operating model and shall include:
> Simplification and streamlining of the
global operating model
> Application of learnings from the
“new normal”
> Acceleration of our digitalization agenda
© │ Press Conference │ FY 2020 02/23/2021 Page 24MID-TERM TARGETS 2020-2025
REVENUE NET INCOME
(CAGR, constant (CAGR, constant Assumptions:
currency growth in %) currency growth in %)
FME25 compensates for the anticipated
COVID-19 related effects
Mid-single digit High-single digit
Excluding special items:
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.1
1 Special items include costs related to the FME25 program
© │ Press Conference │ FY 2020 02/23/2021 Page 25? YOUR QUESTIONS
ARE WELCOME.
Rice Powell Chief Executive Officer
Helen Giza Chief Financial Officer
Frank Maddux Global Chief Medical OfficerYou can also read
