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PRESS CONFERENCE – 2015 RESULTS
February 24, 2016 │ Bad Homburg v.d.H. │ www.fresenius.com
Slide 2
2017 net income target achieved two years early
Continued strong growth expected
25% dividend increase
Outstanding development at Fresenius Kabi
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
12th consecutive record year: Double-digit increases in sales and net income
Slide 3
FRESENIUS GROUP: FINANCIAL RESULTS
cc = constant currency EBIT and net income before one-time items
Sales EBIT Net income
FY/2015 €27,626 m €3,958 m €1,423 m
Growth (constant currency)
9% 13% 21%
Growth (actual rates) 19% 25% 31%
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
Slide 4
7,9
10,8 11,4 12,3
14,2
16,0 16,4
19,3 20,3
23,2
27,6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€bn
222
330 410
450 514
660
770
938
1.051 1.086
1,423
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€m
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
FRESENIUS GROUP: NEW SALES AND EARNINGS RECORDS
Sales Net Income
Net income before one-time items CAGR = ∅ annual growth rate
Slide 5
FRESENIUS GROUP: DIVIDEND DEVELOPMENT AND TOTAL SHAREHOLDER RETURN
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
23rd consecutive dividend increase Total Return: Fresenius outperforms DAX index
Source: Bloomberg; dividends reinvested
Dividend growth aligned to EPS growth Payout ratio: 21%
0 4 8 12 16 20 24
DAX
Freseniusshare ~20% p.a.
~7% p.a.
%
Compounded annual total return Dec 31, 2005 − Dec 31, 2015
0.02
0.16 0.19
0.22 0.23 0.25 0.29
0.32
0.37
0.42 0.44
0.55
'93 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
2015: Proposal
€ 2015
+25%
Slide 6
FY/2015
Growth FY YoY
Sales EBIT
US$16,738 m US$2,327 m
6% 3%
Sales EBIT
€5,950 m €1,189 m
16% 36%
Sales EBIT
€5,578 m €640 m
6% 16%
Sales EBIT
€1,118 m €64 m
7% 8%
FRESENIUS GROUP: FINANCIAL RESULTS BY BUSINESS SEGMENT
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
EBIT partly before special items
Slide 7
FRESENIUS KABI: STRONG GROWTH IN ALL AREAS
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
- 8% organic sales growth, 21% EBIT growth in constant currency
- Growth driver North America: persisting drug shortages and new product launches
- High double-digit growth rates in emerging markets
Growth Investing in Quality
Sales Distribution by Region 2015
Europe 36%
North America 35%
Emerging markets 29%
- Ultramodern IV production plant in Melrose Park, USA plant put into operation
⇒ Technology transfers to additional plants
- Reliably high product quality improves Fresenius Kabi’s competitive position
⇒Benefits patients and the company
Slide 8
As of Dec 31, 2015
FRESENIUS HELIOS: INTEGRATION PROCESS COMPLETED, TARGETING CONTINUED GROWTH
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
- 4% organic sales increase in Q4/15, driven by solid admission growth
- Continued favorable reimbursement environment; DRG inflator set at 2.95%
- Hospital network “Wir für Gesundheit” with more than 5,000 PlusCards in use as of Jan 31, 2016
- Privatization trend ongoing; acquisition of 500-bed hospital in February 2016
Growth Largest network with 111 hospitals
~ 34,000 beds
~ 1.3 million inpatient admissions
~ 3.4 million outpatient admissions
Slide 9
FRESENIUS VAMED: BALANCED PORTFOLIO PROVIDES STABLE GROWTH
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
- €904 m order intake at all-time high, providing a solid basis for FY/2016
- Further expansion of geographic presence, primarily in emerging and developing countries
- Revenue share of service business expected to increase mid to long-term
Growth Sustained Double-Digit Growth
23 26
30 36
41 44
51 55
59 64
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
392 408 524
618 713 737
846
1,020 1,042 1,118
0
200
400
600
800
1.000
1.200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
€m
Service Business Project Business
49%
33%
51%
67%
2015
2011
Expansion of Service Business
% of total sales €m
CAGR = ∅ annual growth rate
Slide 10
FRESENIUS GROUP: 2016 FINANCIAL GUIDANCE
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
Sales growth constant currency
6% ‒ 8%
Net income growth constant currency
8% ‒ 12%
Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items
Slide 11
FRESENIUS GROUP: 2016 FINANCIAL OUTLOOK BY BUSINESS SEGMENT
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
Sales growth (constant currency) Net income growth
7% – 10% 15% – 20%
Sales growth (organic) EBIT (constant currency)
low single-digit Roughly flat
Sales growth (organic) EBIT
3% – 5% €670 – 700 m
Sales growth (organic) EBIT growth
5% – 10% 5% – 10%
Slide 12
FRESENIUS GROUP: NEW MID-TERM GROWTH TARGETS
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
2019:
€36 - 40 billion in sales
€2.0 - 2.25 billion in net income
- At comparable exchange rates
- Without large acquisitions
Slide 13
STRONG GROWTH EVEN WITHOUT LARGE ACQUISITIONS
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
2005 2015
€7.9 bn
€27.6 bn
Fresenius Group Sales
Slide 14
2019e
€2-2.25 bn
Within a 5-year period
NEW MID-TERM GUIDANCE: CONTINUED STRONG NET INCOME GROWTH EXPECTED
Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
2014
€1.09 bn
2009
€0.5 bn
2019e
€2-2.25 bn
2x
Within a 10-year period
4x
Slide 15 Press Conference – 2015 Results, Fresenius SE & Co. KGaA © Copyright, February 24, 2016
SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.
PRESS CONFERENCE – 2015 RESULTS
February 24, 2016 │ Bad Homburg v.d.H. │ www.fresenius.com