SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of July 2020
FRESENIUS MEDICAL CARE AG & Co. KGaA
(Translation of registrant's name into English)
Else-Kröner Strasse 1
61346 Bad Homburg
Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ý | Form 40-F o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o | No ý |
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
FRESENIUS MEDICAL CARE AG & Co. KGaA
Interim Report of Financial Condition and Results of Operations for the three and six months ended June 30, 2020 and 2019
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Management's discussion and analysis
In this report, "FMC-AG & Co. KGaA," or the "Company," "we," "us" or "our" refers to the Company or the Company and its subsidiaries on a consolidated basis, as the context requires. You should read the following discussion and analysis of the results of operations of the Company and its subsidiaries in conjunction with our unaudited consolidated financial statements and related notes contained elsewhere in this report and our disclosures and discussions in our consolidated financial statements for the year ended December 31, 2019 prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), using the euro as our reporting currency.
The term "North America Segment" refers to our North America operating segment, the term "EMEA Segment" refers to the Europe, Middle East and Africa operating segment, the term "Asia-Pacific Segment" refers to our Asia-Pacific operating segment, and the term "Latin America Segment" refers to our Latin America operating segment. The term "Corporate" includes certain headquarters' overhead charges, including accounting and finance, centrally managed production, asset management, quality and supply chain management, procurement as well as research and development and our Global Medical Office function (as of January 1, 2020), which seeks to standardize medical treatments and clinical processes within the Company. The abbreviation "M" is used to denote the presentation of amounts in millions. The term "Constant Currency" or at "Constant Exchange Rates" means that we have translated local currency revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items for the current reporting period into euro using the prior year exchange rates to provide a comparable analysis without effect from exchange rate fluctuations on translation, as described below under "Financial condition and results of operationsII. Discussion of measuresNon-IFRS measures."
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). When used in this report, the words "outlook," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated, and future events and actual results, financial and otherwise, could differ materially from those set forth in or contemplated by the forward-looking statements contained elsewhere in this report. We have based these forward-looking statements on current estimates and assumptions made to the best of our knowledge. By their nature, such forward-looking statements involve risks, uncertainties, assumptions and other factors which could cause actual results, including our financial condition and profitability, to differ materially, positively or negatively, relative to the results expressly or implicitly described in or suggested by these statements. Moreover, forward-looking estimates or predictions derived from third parties' studies or information may prove to be inaccurate. Consequently, we cannot give any assurance regarding the future accuracy of the opinions set forth in this report or the actual occurrence of the projected developments described herein. In addition, even if our future results meet the expectations expressed here, those results may not be indicative of our performance in future periods.
These risks, uncertainties, assumptions, and other factors, including associated costs, could cause actual results to differ from our projected results and include, among others, the following:
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and regulation as well as, in the U.S., the Anti-Kickback Statute, the False Claims Act, the Stark Law, the Health Insurance Portability and Accountability Act, the Health Information Technology for Economic and Clinical Health Act, the Foreign Corrupt Practices Act ("FCPA") including the monitor agreement with the U.S. Department of Justice, the Food, Drug and Cosmetic Act, and outside the U.S., inter alia, the European Union ("EU") Medical Device Directive, which will be repealed by the new EU Medical Device Regulation as of May 26, 2021, the EU General Data Protection Regulation, the two invoice policy and the Tendering and Bidding Law in China and other related local legislation as well as other comparable regulatory regimes in many of the countries where we supply health care services and/or products;
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Important factors that could contribute to such differences are noted in the "Supplemental Risk Factors" set forth below, "Financial condition and results of operationsI. Overview" below, in note 8 of the notes to consolidated financial statements (unaudited) included in this report, in note 22 of the notes to consolidated financial statements included in our Annual Report on Form 20-F for the year ended December 31, 2019 (our "2019 Form 20-F"), as well as under "Risk Factors," "Business overview," "Operating and financial review and prospects," and elsewhere in that report.
Our business is also subject to other risks and uncertainties that we describe from time to time in our public filings which can be accessed at the United States Securities and Exchange Commission's internet website at www.sec.gov. Developments in any of these areas could cause our results to differ materially from the results that we or others have projected or may project.
Our reported financial condition and results of operations are sensitive to accounting methods, assumptions and estimates that are the basis of our financial statements. The actual accounting policies, the judgments made in the selection and application of these policies, as well as the sensitivities of reported results to changes in accounting policies, assumptions and estimates, are factors to be considered along with our financial statements and the discussion under "Results of operations, financial position and net assets" below.
Rounding adjustments applied to individual numbers and percentages shown in this and other reports may result in these figures differing immaterially from their absolute values.
As a result of the current global economic climate, specifically as it relates to COVID-19, as well as a recent attack on our IT environment, we are subject to additional risks, and we have updated previously disclosed risks, related to the on-going worldwide crisis and cybersecurity described below. We are, and will continue to be, subject to the risks described in our Annual Report on 2019 Form 20-F, specifically under "Risk Factors," and the supplemental risk factors described below should be read in conjunction with those risk factors.
We are subject to risks associated with public health crises and epidemics/pandemics, such as the global spread of the COVID-19 pandemic.
Our global operations expose us to risks associated with public health crises and epidemics/pandemics, such as the rapid global spread of the COVID-19 pandemic. COVID-19 has resulted in a material deterioration of the conditions for the global economy and financial markets have been materially affected which may, as a result, adversely affect our business, results of operations and financial condition. While the financial impact of COVID-19 on us has not been significant to date, it is currently impossible to estimate or quantify the extent of its prospective negative effects on our business, results of operations and financial condition. The COVID-19 pandemic may have an adverse impact on our operations, manufacturing, supply chains and distribution channels and increase our expenses, including as a result of impacts associated with preventive and precautionary measures that we, our suppliers, customers and other businesses or governments impose on a local, regional, national or international level. Due to these impacts and measures, we are incurring incremental expenses to provide care to our patients and we are experiencing both reductions and increases in demand for certain of our products as health care customers re-prioritize the treatment of patients. We expect to continue to experience significant and unpredictable expenses, reductions and increases in demand in the immediately foreseeable future including, but not limited to, decreases in elective surgeries as a result of both governmental restrictions and a change in consumer behavior. In addition to existing travel restrictions, countries may continue to close borders, restrict certain product flows, impose prolonged quarantines and further restrict travel, which may significantly impact the ability of our employees to produce products or provide services, or may significantly hamper our products from moving through the supply chain.
In addition to the effects on our health care products business, given the already compromised health condition of our typical dialysis patients, our patients represent a heightened at-risk population, particularly during a public health crisis, such as the COVID-19 outbreak. Our in-center and home patients must receive their life-saving dialysis treatment several days a week for three to four hours at a time, which presents a unique challenge for patients and their care teams. We must ensure that there are enough clinical staff, including nurses, social workers, dietitians, care technicians and available space to treat all of our patients, including those who are or may be infected with COVID-19, in a manner that does not unnecessarily expose our care teams or other patients for whom we provide dialysis services. We have
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incurred, and expect to continue to incur, extra costs in establishing isolated treatment areas for COVID-positive and suspected patients and implementing other precautions as well as incur costs to identify, contain and remedy the impact in the event that a staff member or patient is determined to have developed COVID-19. It appears that COVID-19 has resulted in a significant increase in persons experiencing temporary renal failure, and we could incur additional staffing costs required to meet the resulting increased demand for dialysis treatment and/or to provide equipment and medical staff needed for emergency treatments, for example in hospitals. To the extent that the COVID-19 pandemic increases the historical normal mortality rate in our patient population, our near-term operating results may be materially and adversely affected. COVID-19 has resulted, and may continue to result, in more of our dialysis patients requiring hospitalization, which could also materially and adversely affect our financial results, including those of our value-based and shared risk products and services.
In the U.S., the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") has been enacted to mitigate certain adverse financial impacts of the pandemic, including impacts in the health care sector. Additional funding provided under the CARES Act and other COVID-19 relief provides some financial support to our business in the U.S. through suspension of the 2% Medicare payment sequestration reduction from May to December 2020, accelerated and advance payments of Medicare reimbursement and grants to defray expenses and mitigate the loss of revenues related to the COVID-19 pandemic (see note 2 of the notes to the consolidated financial statements (unaudited) included in this report). However, these measures may not fully offset potential lost revenues and increased costs. Further legislation and amendments to existing legislation intended to fight the COVID-19 pandemic and its adverse economic consequences can be expected in the markets in which we operate. As the COVID-19 pandemic is prolonged, the risk of further government intervention or measures to counteract the pandemic could impact our business globally. It is currently not possible to estimate or to quantify any effects of such legislative measures on our business.
Furthermore, the outbreak of COVID-19 could disrupt our operations due to absenteeism among our workforce. As a result of these and potentially other factors, and given the rapid and evolving nature of the virus, COVID-19 could negatively affect our results, and it is uncertain how COVID-19 will affect our global operations generally if these impacts persist or are exacerbated over an extended period of time. Any of these impacts could have a material adverse effect on our business, financial condition and results of operations.
In addition, to the extent that the COVID-19 pandemic adversely affects our business, net assets, financial condition and results of operations, it may also have the effect of heightening many of the other risks described in this report and under "Risk Factors" in our 2019 Form 20-F.
Global economic conditions as well as disruptions in financial markets may have an adverse effect on our businesses.
We are dependent on the conditions of the financial markets and the global economy. In order to pursue our business, we are reliant on capital markets, as are our renal product customers and commercial health care insurers. Limited or more expensive access to capital in the financial markets could adversely affect our business and profitability. Among other things, the potential decline in federal and state revenues in a prolonged economic slowdown or recession may create additional pressures to contain or reduce reimbursements for our services from public payors around the world, including Medicare, Medicaid in the United States and other government sponsored programs in the United States and other countries around the world.
Devaluation of currencies and worsening economic conditions, including inflationary cost increases in various markets in connection with deteriorating country credit ratings also increase the risk of a goodwill impairment, which could lead to a partial or total goodwill write-off in the affected cash generating units, or have a negative impact on our investments and external partnerships. In addition, uncertainty in the financial markets could adversely affect the valuations of certain of our investments or variable interest rates payable under our credit facilities or could make it more difficult to obtain or renew such facilities or to obtain other forms of financing in the future as access to these capital markets is restricted. Most recently, the rapid global spread of the COVID-19 pandemic has resulted in a material deterioration of the conditions for the global economy and financial markets have been materially and adversely affected which could have adverse effects on our financial condition and our liquidity.
Job losses or increases in the unemployment rate in the United States may result in a smaller percentage of our patients being covered by employer group health plans and a larger percentage being covered by lower
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paying Medicare and Medicaid programs. Unemployment rates globally have been negatively impacted by the COVID-19 outbreak, which adversely affected the global economy and could adversely impact our operating results. The extent to which the COVID-19 outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted. To the extent that our commercial payors are negatively impacted by a decline in the economy, including the projected decline resulting from the COVID-19 pandemic, we may experience further pressure on commercial rates, a further slowdown in collections and a reduction in the amounts we are able to collect.
Any or all of these factors, or other consequences of the continuation, or worsening, of domestic and global economic conditions which cannot currently be predicted, could continue to have a material adverse effect on our businesses and results of operations.
We could be adversely affected if we experience shortages of goods or material price increases from our suppliers, or an inability to access new and improved products and technology.
Our business is dependent on the reliable supply of several raw materials for production and service purposes. If we are unable to obtain sufficient quantities of these raw materials at times of limited availability of such materials, this could result in delays in production or loss of sales and hence have an adverse effect on our results of operations. Similarly, price increases by suppliers and the inability to access new products or technology could also adversely affect our results of operations.
Our procurement risk mitigation efforts include (i) the development of partnerships with strategic suppliers through framework contracts, (ii) where reasonably practicable, at least two sources for all supply and price-critical primary products (dual sourcing, multiple sourcing), and (iii) measures to prevent loss of suppliers, such as risk analyses as well as continuous supply chain monitoring. Any failure of these measures to mitigate disruptive goods shortages and potential price increases or to allow access to favorable new product and technology developments could have an adverse impact on our business and financial condition.
Measures taken by governmental authorities and private actors to limit the spread of the COVID-19 virus have interfered, and may continue to interfere, with the ability of our employees, suppliers, and other business providers to carry out their assigned tasks or supply materials at ordinary levels of performance. While the financial impact of these actions on us has not been material to date, given the rapid spread and evolving nature of the virus, it is uncertain how COVID-19 will affect our global operations generally if these actions persist or are expanded over an extended period of time. Additionally, decreases in the availability and related increases in the cost of personal protective equipment as well as the lack of eligible grants under governmental COVID-19 relief programs to offset some of those expenses could adversely affect our results of operations.
Cyber attacks or other privacy and data security incidents could disrupt our business and expose us to significant losses, liability and reputational damage.
We and our third-party service providers routinely process, store and transmit large amounts of data in our operations, including sensitive personal information as well as proprietary or confidential information relating to our business or third-parties. We may be subject to breaches of the information technology security systems we use both internally and externally with third-party service providers.
Cyber attacks may penetrate our and our third-party service providers' security controls and result in the misappropriation or compromise of sensitive personal information or proprietary or confidential information, including such information which is stored or transmitted on the systems used by certain of our or their products, to create system disruptions, cause shutdowns, or deploy viruses, worms, and other malicious software programs that attack our systems. We and our third-party service providers handle the personal information of our patients and beneficiaries, Patient Personal Data ("PPD"), throughout the United States and other parts of the world. We or our business associates may experience a breach under the U.S. Health Insurance Portability and Accountability Act Privacy and Security Rules, the EU's General Data Protection Regulation and or other similar laws ("Data Protection Laws"), including the following events:
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In May 2020, our IT environment was attacked which resulted in certain patient data being illegally published in Serbia. We immediately filed a complaint against the unknown attackers with the public prosecutor in Germany and we have contacted the patients who were affected by the illegal data publication. While there was no material impact to our financial condition and results of operations as a result of this attack, future cyber attacks against our IT systems may result in a loss of financial data or interruptions of our operations that could have a material adverse impact on our business, financial condition and results of operations in the future.
As we increase the amount of sensitive personal information or financial data that we store and share digitally, our exposure to these privacy and data breaches and cyber-attack risks increases, including the risk of undetected attacks, damage, loss or unauthorized disclosure or access, and the cost of attempting to protect against these risks also increases. There are no assurances that our security technologies, processes and procedures that we or our outside service providers have implemented to protect sensitive personal information and proprietary or confidential information and to build security into the design of our products will be effective. Any failure to keep our information technology systems, financial data and our patients' and customers' sensitive information secure from attack, damage, loss or unauthorized disclosure or access, whether as a result of our action or inaction or that of our third-party business associates or vendors that utilize and store such personal information on our behalf, could materially adversely affect our reputation and ability to continue normal operations, expose us to mandatory public disclosure requirements, litigation and governmental enforcement proceedings, material fines, penalties and/or remediation costs, and compensatory, special, punitive and statutory damages, consent orders and other adverse actions, any of which could have a material adverse impact on our business, financial condition and results of operations.
Financial condition and results of operations
I. Overview
We are the world's largest kidney dialysis company, based on publicly reported revenue and number of patients treated. We provide dialysis care and related services to persons who suffer from end-stage renal disease ("ESRD") as well as other health care services. We also develop, manufacture and distribute a wide variety of health care products, which includes dialysis and non-dialysis products. Our dialysis products include hemodialysis machines, peritoneal cyclers, dialyzers, peritoneal solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals and systems for water treatment. Our non-dialysis products include acute cardiopulmonary and apheresis products. We supply dialysis clinics we own, operate or manage with a broad range of products and also sell dialysis products to other dialysis service providers. We sell our health care products to customers in around 150 countries and we also use them in our own health care service operations. Our dialysis business is therefore vertically integrated. We describe certain of our other health care services as "Care Coordination." Care Coordination currently includes, but is not limited to, value and risk-based arrangements, pharmacy services, vascular, cardiovascular and endovascular specialty services as well as ambulatory surgery center services, physician nephrology and cardiology services, urgent care services and ambulant treatment services. All of these Care Coordination services together with dialysis care and related services represent our health care services. We estimated the volume of the global dialysis market was approximately €80 billion in 2019. Due to the complexity and evolving nature of Care Coordination services, we are currently unable to estimate the global volume of this market. Dialysis patient growth results from factors such as the aging population and increased life expectancies; shortage of donor organs for kidney transplants; increasing incidence of kidney disease and better treatment of and survival of patients with diabetes, hypertension and other illnesses, which frequently lead to the onset of chronic kidney disease; improvements in treatment quality, new pharmaceuticals and product technologies, which prolong patient life; and improving standards of living in developing countries, which make life-saving dialysis treatment available. We are also engaged in different areas of health care research.
As a global company delivering health care services and products, we face the challenge of addressing the needs of a wide variety of stakeholders, such as patients, customers, payors, regulators and legislators in many different economic environments and health care systems. In general, government-funded programs (in some countries in coordination with private insurers) pay for certain health care items and services provided to their citizens. Not all health care systems provide payment for dialysis treatment. Therefore, the reimbursement systems and ancillary services utilization environment in various countries significantly influence our business.
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Significant U.S. reimbursement developments
The majority of health care services we provide are paid for by governmental institutions. For the six months ended June 30, 2020, approximately 33% of our consolidated revenue is attributable to U.S. federally-funded health care benefit programs, such as Medicare and Medicaid reimbursement, under which reimbursement rates are set by CMS. Legislative changes could affect Medicare reimbursement rates for a significant portion of the services we provide. In recent years, the stability of reimbursement in the U.S. has been affected by (i) the implementation of the ESRD prospective payment system ("ESRD PPS") in January 2011, (ii) the U.S. federal government across the board spending cuts in payments to Medicare providers commonly referred to as "U.S. Sequestration" as well as the current moratorium on such cuts, (iii) the reduction to the ESRD PPS rate to account for the decline in utilization of certain drugs and biologicals associated with dialysis pursuant to the American Taxpayer Relief Act of 2012 ("ATRA") as subsequently modified under the Protecting Access to Medicare Act of 2014 ("PAMA") and (iv) CMS's 2017 final rule on the Physician Fee Schedule, which partially corrected reimbursement for certain procedures that were materially undervalued in 2016. Please see the detailed discussions on these and further legislative developments below:
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enough to account for situations in which a facility is unable to obtain data on 100% of all patients. CMS also proposed to update the National Healthcare Safety Network validation study to reduce the number of required records from 20 records across each of the first two quarters (total of 40 records) to 20 records across any two quarters. CMS estimates the impact of its proposed QIP changes will result in a 0.12% payment reduction for large dialysis organizations.
Presently, there is considerable uncertainty regarding possible future changes in health care regulation, including the regulation of reimbursement for dialysis services. See "Risk factorsWe operate in a highly regulated industry such that the potential for legislative reform provides uncertainty and potential threats to our operating models and results" which is included in our 2019 Form 20-F.
Non-oral ESRD-related drugs are generally reimbursed as part of the ESRD PPS bundled payment. Oral only ESRD-related drugs are generally reimbursed outside the ESRD PPS bundled payment. In a final rule published on November 6, 2015, CMS provided for implementation of the PAMA oral-only provision. CMS clarified that once any non-oral ESRD-related drug in a category previously considered oral only is approved by the U.S. Food and Drug Administration ("FDA"), such category of drugs will cease to be considered oral only. However, for at least two years, CMS will pay for both oral and non-oral versions of the drug using a TDAPA. During this transition period, CMS will not pay outlier payments for these drugs, but the agency will collect data reflecting utilization of both the oral and injectable or intravenous forms of the drugs, as well as payment patterns, to help determine how to appropriately adjust the ESRD PPS payment rate as these drugs are included in the payment bundle. At the end of this transition period, CMS will incorporate payment for the oral and non-oral versions of the drug in the ESRD PPS payment rates, utilizing a public rulemaking process.
The introduction of Parsabiv an intravenous calcimimetic, has resulted in changes in how some payors, other than Medicare, arrange for the provision of calcimimetics for their patients. While some patients continue to receive calcimimetics from their pharmacies as a pharmacy benefit, other patients receive calcimimetics from their dialysis providers, as a medical benefit. While we receive additional reimbursement from some payors when these drugs are provided by our clinics, this type of transition from an oral-only drug has not occurred previously and the reimbursement landscape for non-Medicare payors continues to evolve.
For additional information, see "Risk FactorsIf we are unable to secure appropriate reimbursement arrangements for the pharmaceuticals we provide in our dialysis clinics, our business could be adversely affected" in our 2019 Form 20-F.
Premium assistance programs
On August 18, 2016, the Centers for Medicare and Medicaid Services ("CMS") issued a request for information ("RFI") seeking public comment about providers' alleged steering of patients inappropriately to individual plans offered on the Patient Protection and Affordable Care Act individual health insurance market. The holding company for our U.S. operations, Fresenius Medical Care Holdings, Inc. ("FMCH"), and other dialysis providers, commercial insurers and other industry participants responded to the RFI, and in that response, we reported that we do not engage in such steering. On December 14, 2016, CMS published an Interim Final Rule ("IFR") titled "Medicare Program; Conditions for Coverage for End-Stage Renal Disease Facilities-Third Party Payment" that would amend the Conditions for Coverage for dialysis providers, like FMCH. The IFR would have effectively enabled insurers to reject premium payments made by patients who received grants for individual market coverage from the American Kidney Fund ("AKF") and, therefore, could have resulted in those patients losing their individual market health insurance coverage. The loss of individual market coverage for these patients would have had a material and adverse impact on our operating results. See "Risk FactorsChanges in reimbursement and/or governmental regulations for health care could materially decrease our revenues and operating profit" in our 2019 Form 20-F. On January 25, 2017, a federal district court in Texas, responsible for litigation
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initiated by a patient advocacy group and dialysis providers including FMCH, preliminarily enjoined CMS from implementing the IFR (Dialysis Patient Citizens v. Burwell (E.D. Texas, Sherman Div.)). The preliminary injunction was based on CMS's failure to follow appropriate notice-and-comment procedures in adopting the IFR. The injunction remains in place and the court retains jurisdiction over the dispute. On June 22, 2017, CMS requested a stay of proceedings in the litigation pending further rulemaking concerning the IFR. CMS stated, in support of its request that it expected to publish a Notice of Proposed Rulemaking in the Federal Register and otherwise pursue a notice-and-comment process in the fall of 2017 which it ultimately did not publish. Plaintiffs in the litigation, including FMCH, consented to the stay, which was granted by the court.
Separately, the United States Department of Health and Human Services ("HHS") has drafted a new proposed rule entitled "Conditions for Coverage for End-Stage Renal Disease FacilitiesThird Party Payments" (CMS-3337-P). While the proposed rule has been under review by the Office of Management and Budget since June 2019, and the HHS identified a target date of November 2019 for publication, the proposed rule has not yet been published for comment.
The operation of charitable assistance programs like that of the AKF is also receiving increased attention by state insurance regulators and legislators. The result may be a regulatory framework that differs from state to state. Even in the absence of the IFR or similar state actions, insurers are likely to continue efforts to thwart charitable premium assistance to our patients for individual market plans and other insurance coverages. If successful in a material area or scope of our U.S. operations, these efforts would have a material adverse impact on our business and operating results.
On January 3, 2017, FMCH received a subpoena from the United States Attorney for the District of Massachusetts inquiring into its interactions and relationships with AKF, including its charitable contributions to the Fund and the Fund's financial assistance to patients for insurance premiums. FMCH cooperated with the investigation, which was part of a broader investigation into charitable contributions in the medical industry. On August 1, 2019, the United States District Court for the District of Massachusetts entered an order announcing that the United States had declined to intervene on a qui tam complaint underlying the Boston United States Attorney's Office ("USAO") investigation and unsealing the relator's complaint so as to permit the relator to serve the complaint and proceed on his own. The relator did not serve the complaint within the time allowed but the court has not yet dismissed the relator's complaint.
For further information on these and other legal proceedings, please see note 8 of the notes to the consolidated financial statements (unaudited) included in this report.
U.S. ballot initiatives and other legislation
Further federal or state legislation or regulations may be enacted in the future through legislative and public referendum processes that could substantially modify or reduce the amounts paid for services and products offered by us and our subsidiaries and/or mandate new or alternative operating models and payment models that could present more risk to our health care service operations. Ballot initiatives that are successfully introduced at the state level in the United States require the vote of state citizens to directly adopt or reject proposed new legislation. These ballot initiatives require a material expenditure of resources by us to participate in public discourse regarding the proposed new legislation underlying the initiatives which, if passed, could further regulate multiple aspects of our operations including, for instance, clinic staffing requirements, state inspection requirements and profit margins on commercial business. Efforts to enact new state laws regarding our operations are continuing. State regulation at this level would introduce an unprecedented level of oversight and additional expense at the clinic level which could have a material adverse effect on our business in the impacted states. It is also possible that statutes may be adopted or regulations may be promulgated in the future that impose additional eligibility requirements for participation in the federal and state health care programs. Such new legislation or regulations could, depending upon the detail of the provisions, have positive or adverse effects, possibly material, on our businesses and results of operations.
Participation in new Medicare payment arrangements
Under CMS's Comprehensive ESRD Care Model (the "Model"), dialysis providers and physicians have formed entities known as ESRD Seamless Care Organizations ("ESCOs") as part of a payment and care delivery pilot program that seeks to deliver better health outcomes for Medicare ESRD patients while lowering CMS's costs. Following our initial participation in six ESCOs, we are presently participating in the Model through 23 ESCOs formed at our dialysis facilities. ESCOs that achieve the program's minimum
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quality thresholds and generate reductions in CMS's cost of care above certain thresholds for the ESRD patients covered by the ESCO will receive a share of the cost savings, which is adjusted based on the ESCO's performance on certain quality metrics. ESCOs that include dialysis chains with more than 200 facilities are required to share in the risk of cost increases and to reimburse CMS a share of any such increases if actual costs rise above set thresholds. As of June 2020, the number of patients participating in our ESCOs was approximately 47,500.
In November 2017, we announced the results from the first performance year ("PY") from our ESCOs. The results, which cover the period from October 2015 through December 2016, show improved health outcomes for patients receiving coordinated care through the ESCOs. This success was validated by an independent report, which showed a nearly 9% decrease in hospitalization rates for these patients during the same time. In the second performance year (calendar year ("CY") 2017) the Company's ESCOs together generated more than $66.7 M in gross savings, an average 3.4% reduction in expenditures per patient. CMS has not yet published the final settlement reports for the third performance year (CY 2018). The ESCO pilot program will run until the end of 2020. ESCOs will be given the option to extend participation in the program through March 31, 2021.
We have also entered into sub-capitation and other risk-based and value-based arrangements with certain payors to provide care to commercial and Medicare Advantage, ESRD and CKD patients. Under these arrangements, a baseline per patient per month amount is established. If we provide complete care for less than the baseline, we retain the difference. If the cost of complete care exceeds the baseline, we may owe the payor the difference.
On May 22, 2020, CMS issued a final rule that, effective January 1, 2021, removes outpatient dialysis facilities from the time-and-distance standards applicable under the network adequacy rules for Medicare Advantage plans. On June 22, 2020, Dialysis Patient Citizens, a charitable patient advocacy organization, filed a lawsuit on behalf of all dialysis patients to challenge that rule, and on July 13, 2020, Fresenius Medical Care North America along with two other dialysis providers joined the lawsuit. Dialysis Patient Citizens, et al. v. Alex Azar, et al., U.S.D.C. D.C, 1:20-cv-01664. The plaintiffs' request for relief is that the provisions in this final rule regarding outpatient dialysis facilities be vacated and that CMS be enjoined from enforcing or administering those provisions.
Executive order-based models
On July 10, 2019, an Executive Order on advancing kidney health was signed in the United States. Among other things, the order instructs the Secretary of HHS to develop new Medicare payment models that will encourage identification and treatment earlier in kidney disease progression as well as increased home dialysis and transplants. One of those models, the ESRD Treatment Choices ("ETC") model, is a mandatory model that will create financial incentives for home treatment and transplant. This model proposes to apply both positive and negative payment adjustments to claims submitted by physicians and dialysis facilities for home dialysis patients for 3 years. This model also proposes a payment adjustment based on performance. The performance-based adjustment will be based on home dialysis and transplant rates and will range from (8%) to 5% in the first payment year to (13%) and 10% percent in the final payment year. The ETC model initially proposed a start date of January 2020 and would end in 2026; however, CMS has postponed the start date of the ETC model. Participants in this model will be selected randomly. Pursuant to the Executive Order, the Secretary also announced voluntary payment models, Kidney Care First ("KCF") and Comprehensive Kidney Care Contracting ("CKCC") model (graduated, professional and global), which aims to build on the existing Comprehensive End Stage Renal Disease Care model. The voluntary models create financial incentives for health care providers to manage care for Medicare beneficiaries with chronic kidney disease stages 4 and 5 and with ESRD to delay the start of dialysis and to incentivize kidney transplant. The voluntary models allow health care providers to take on various amounts of risk. One model, the CKCC global model, allows renal health care providers to participate by forming an entity known as a Kidney Care Entity ("KCE"). Through the KCE, renal health care providers take responsibility for 100 percent of the total cost of care for all Medicare Part A and B services for aligned beneficiaries. The KCF model limits participation to nephrologists while the CKCC model requires participation by both nephrologists or nephrology practices and transplant providers. Dialysis providers and other suppliers may participate. Applications for the voluntary models were submitted in January 2020. We submitted 25 CKCC applications and are also included in four other CKCC applications submitted by nephrologists. All 29 applications were accepted in June 2020. We are continuing to evaluate whether to participate in the CKCC model. The implementation period for the CKCC model is from October 1, 2020 through March 31, 2021, and the first Performance Year starts on April 1, 2021 and
10
ends December 31, 2021. Financial risk does not begin until the start of the Performance Year. Once implemented, the CKCC model is expected to run through 2023, with two additional years through 2025 at CMS's option. Once implemented, the CKCC model is expected to run through 2023. It is too soon to predict the effects on our business of the ETC payment model and the voluntary payment models.
Company structure
Our operating segments are the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment. The operating segments are determined based upon how we manage our businesses with geographical responsibilities. All segments are primarily engaged in providing health care services and the distribution of products and equipment for the treatment of ESRD and other extracorporeal therapies. Management evaluates each segment using measures that reflect all of the segment's controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate IFRS measures are revenue, operating income and operating income margin. We do not include income taxes as we believe this is outside the segments' control. Financing is a corporate function which our segments do not control. Therefore, we do not include interest expense relating to financing as a segment measurement. Similarly, we do not allocate certain costs which relate primarily to certain headquarters' overhead charges, including accounting and finance, because we believe that these costs are also not within the control of the individual segments. Production of products, production asset management, quality and supply chain management as well as procurement related to production are centrally managed. Products transferred to the segments are transferred at cost; therefore, no internal profit is generated. The associated internal revenue for the product transfers and their elimination are recorded as corporate activities. Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. The Company's global research and development as well as its Global Medical Office are also centrally managed. These corporate activities do not fulfill the definition of a segment according to IFRS 8. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but accounted for as Corporate. Accordingly, all of these items are excluded from our analysis of segment results and are discussed below in the discussion of our consolidated results of operations. See note 10 of the notes to consolidated financial statements (unaudited) found elsewhere in this report for a further discussion on our operating segments.
Non-IFRS measures
Certain of the following key performance indicators and other financial information as well as discussions and analyses set out in this report include measures that are not defined by IFRS ("Non-IFRS Measure"). We believe this information, along with comparable IFRS financial measurements, is useful to our investors as it provides a basis for assessing our performance, payment obligations related to performance-based compensation, as well as our compliance with financial covenants. Non-IFRS financial measures should not be viewed or interpreted as a substitute for financial information presented in accordance with IFRS.
Some key performance indicators and other financial measures used in this report such as changes in revenue, operating income and net income attributable to shareholders of FMC-AG & Co. KGaA include the impact of translating local currencies to our reporting currency for financial reporting purposes. We calculate these Non-IFRS financial measures at constant exchange rates in our publications 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 calculated using the prior period exchange rates versus the prior period. 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 terms "Constant Exchange Rates" or "Constant Currency."
We believe that the measures at Constant Currency are useful to investors, lenders and other creditors because such information enables them to gauge the impact of currency fluctuations on our revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items from period to period. In addition, under our long-term incentive plans, we measure the attainment of certain
11
pre-determined financial targets for revenue growth and net income growth in Constant Currency. However, we limit our use of Constant Currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency into euro. We do not evaluate our results and performance without considering both:
We caution the readers of this report to follow a similar approach by considering data on Constant Currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items prepared in accordance with IFRS. We present the growth rate derived from non-IFRS measures next to the growth rate derived from IFRS measures such as revenue, operating income, net income attributable to shareholders of FMC-AG & Co. KGaA and other items. As the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.
Delivered operating income (Non-IFRS Measure)
As a result of the significance of noncontrolling interest holders in our operations, we believe a measure that is meaningful to investors is operating income less noncontrolling interests ("Delivered Operating Income"). Delivered Operating Income approximates the operating income attributable to the shareholders of FMC-AG & Co. KGaA. As such, we believe that operating income is the closest comparable IFRS measure. Delivered Operating Income is also benchmarked based on movement at Constant Exchange Rates.
12
Below is a table showing the reconciliation of operating income to Delivered Operating Income on a consolidated basis and for our reporting segments:
Delivered Operating Income reconciliation
in € M
|
Three months ended June 30, | Six months ended June 30, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2020 | 2019 | 2020 | 2019 | |||||||||
Total |
|||||||||||||
Operating income |
656 | 521 | 1,211 | 1,058 | |||||||||
less noncontrolling interests |
(76 | ) | (61 | ) | (144 | ) | (118 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
580 | 460 | 1,067 | 940 | |||||||||
North America Segment |
|
|
|
|
|||||||||
Operating income |
609 | 429 | 1,073 | 801 | |||||||||
less noncontrolling interests |
(74 | ) | (57 | ) | (139 | ) | (111 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
535 | 372 | 934 | 690 | |||||||||
Dialysis |
|
|
|
|
|||||||||
Operating income |
567 | 428 | 984 | 760 | |||||||||
less noncontrolling interests |
(64 | ) | (55 | ) | (121 | ) | (103 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
503 | 373 | 863 | 657 | |||||||||
Care Coordination |
|
|
|
|
|||||||||
Operating income |
42 | 1 | 89 | 41 | |||||||||
less noncontrolling interests |
(10 | ) | (2 | ) | (18 | ) | (8 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
32 | (1 | ) | 71 | 33 | ||||||||
EMEA Segment |
|
|
|
|
|||||||||
Operating income |
78 | 96 | 179 | 235 | |||||||||
less noncontrolling interests |
(1 | ) | (2 | ) | (2 | ) | (3 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
77 | 94 | 177 | 232 | |||||||||
Asia-Pacific Segment |
|
|
|
|
|||||||||
Operating income |
63 | 69 | 140 | 164 | |||||||||
less noncontrolling interests |
(1 | ) | (2 | ) | (3 | ) | (4 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
62 | 67 | 137 | 160 | |||||||||
Dialysis |
|
|
|
|
|||||||||
Operating income |
70 | 64 | 144 | 154 | |||||||||
less noncontrolling interests |
(2 | ) | (1 | ) | (3 | ) | (4 | ) | |||||
| | | | | | | | | | | | | |
Delivered Operating Income |
68 | 63 | 141 | 150 | |||||||||
Care Coordination |
|
|
|
|
|||||||||
Operating income |
(7 | ) | 5 | (4 | ) | 10 | |||||||
less noncontrolling interests |
1 | (1 | ) | | | ||||||||
| | | | | | | | | | | | | |
Delivered Operating Income |
(6 | ) | 4 | (4 | ) | 10 | |||||||
Latin America Segment |
|
|
|
|
|||||||||
Operating income |
11 | 6 | 18 | 17 | |||||||||
less noncontrolling interests |
0 | 0 | 0 | | |||||||||
| | | | | | | | | | | | | |
Delivered Operating Income |
11 | 6 | 18 | 17 | |||||||||
| | | | | | | | | | | | | |
Net cash provided by (used in) operating activities in % of revenue
Our consolidated statement of cash flows indicates how we generated and used cash and cash equivalents. In conjunction with our other primary financial statements, it provides information that helps us evaluate changes to our net assets and our financial structure (including liquidity and solvency). Net cash provided
13
by (used in) operating activities is applied to assess whether a business can generate the cash required to make the necessary replacement and expansion of investments. This indicator is impacted by the profitability of our business and the development of working capital, mainly receivables. Net cash provided by (used in) operating activities in percent of revenue shows the percentage of our revenue that is available in terms of financial resources. It is an indicator of our operating financial strength.
Free cash flow in % of revenue (Non-IFRS Measure)
Free cash flow (which we define as net cash provided by (used in) operating activities after capital expenditures, before acquisitions and investments) refers to the cash flow we have at our disposal, including cash flows that may be restricted for other uses. This indicator shows the percentage of revenue available for acquisitions and investments, dividends to shareholders, reducing debt financing or for repurchasing shares.
The following table shows the cash flow key performance indicators for the six months ended June 30, 2020 and 2019 and reconciles free cash flow and free cash flow in percent of revenue to Net cash provided by (used in) operating activities and Net cash provided by (used in) operating activities in percent of revenue, respectively:
Cash flow measures
in € M, except where otherwise specified
|
For the six months ended June 30, | ||||||
---|---|---|---|---|---|---|---|
|
2020 | 2019 | |||||
Revenue |
9,045 | 8,478 | |||||
| | | | | | | |
Net cash provided by (used in) operating activities |
2,903 | 928 | |||||
Capital expenditures |
(500 | ) | (497 | ) | |||
Proceeds from sale of property, plant and equipment |
4 | 4 | |||||
| | | | | | | |
Capital expenditures, net |
(496 | ) | (493 | ) | |||
| | | | | | | |
Free cash flow |
2,407 | 435 | |||||
Net cash provided by (used in) operating activities in % of revenue |
32.1 | % | 10.9 | % | |||
Free cash flow in % of revenue |
26.6 | % | 5.1 | % | |||
| | | | | | | |
Net leverage ratio (Non-IFRS Measure)
The net leverage ratio is a key performance indicator used for internal management. To determine the net leverage ratio, debt and lease liabilities less cash and cash equivalents (net debt) is compared to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (adjusted for acquisitions and divestitures made during the last twelve months with a purchase price above a €50 M threshold as defined in the Amended 2012 Credit Agreement, non-cash charges and impairment loss). The ratio is an indicator of the length of time the Company needs to service the net debt out of its own resources. We believe that the net leverage ratio provides alternative information that management believes to be useful in assessing our ability to meet our payment obligations in addition to considering the absolute amount of our debt. We have a strong market position in a growing, global and mainly non-cyclical market. Furthermore, most of our customers have a high credit rating as the dialysis industry is characterized by stable and sustained cash flows. We believe this enables us to work with a reasonable proportion of debt, through the employment of an extensive mix of debt.
Adjusted EBITDA, a non-IFRS Measure, is also the basis for determining compliance with certain other covenants contained in our Amended 2012 Credit Agreement and is also relevant in certain of our other major financing arrangements. You should not consider adjusted EBITDA to be an alternative to net earnings determined in accordance with IFRS or to cash flow from operations, investing activities or financing activities. In addition, not all funds depicted by adjusted EBITDA are available for management's discretionary use. For example, a substantial portion of such funds are subject to contractual restrictions and functional requirements to fund debt service, capital expenditures and other commitments from time to time as described in more detail elsewhere in this report.
14
The following table shows the reconciliation of adjusted EBITDA and net leverage ratio as of June 30, 2020 and December 31, 2019.
Reconciliation of adjusted EBITDA and net leverage ratio to the most directly comparable IFRS financial measure
in € M, except for net leverage ratio
|
June 30, 2020 | December 31, 2019 | |||||
---|---|---|---|---|---|---|---|
Debt and lease liabilities(1) |
13,478 | 13,782 | |||||
Minus: Cash and cash equivalents(2) |
(1,889 | ) | (1,008 | ) | |||
| | | | | | | |
Net debt |
11,589 | 12,774 | |||||
Net income(3) |
1,574 |
1,439 |
|||||
Income tax expense(3) |
446 | 402 | |||||
Interest income(3) |
(56 | ) | (62 | ) | |||
Interest expense(3) |
459 | 491 | |||||
Depreciation and amortization(3) |
1,608 | 1,553 | |||||
Adjustments(3)(4) |
97 | 110 | |||||
| | | | | | | |
Adjusted EBITDA |
4,128 | 3,933 | |||||
Net leverage ratio |
2.8 |
3.2 |
|||||
| | | | | | | |
Return on invested capital ("ROIC") (Non-IFRS Measure)
ROIC is the ratio of operating income, for the last twelve months, after tax ("net operating profit after tax" or "NOPAT") to the average invested capital of the last five quarter closing dates, including adjustments for acquisitions and divestitures made during the last twelve months with a purchase price above a €50 M threshold as defined in the Amended 2012 Credit Agreement, and expresses how efficiently we allocate the capital under our control or how well we employ our capital with regard to a specific investment project. An adjustment to exclude amounts related to the implementation of IFRS 16, Leases which replaced the straight-line operating lease expense for former leases under International Accounting Standard 17, Leases with a depreciation charge for the lease asset and an interest expense on the lease liability as well as the classification of certain IAS 17 leases (such effects being, collectively "IFRS 16 Implementation") is included for the purpose of increasing the comparability of previously reported information in accordance with our long-term incentive plans in 2019. The following table shows the
15
reconciliation of average invested capital to total assets, which we believe to be the most directly comparable IFRS financial measure, and how ROIC is calculated:
Reconciliation of average invested capital and ROIC (unadjusted)
in € M, except where otherwise specified
2020
|
June 30,
2020 |
March 31,
2020 |
December 31,
2019 |
September 30,
2019 |
June 30,
2019 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
34,190 | 34,072 | 32,935 | 33,169 | 31,956 | |||||||||||
Plus: Cumulative goodwill amortization |
421 | 430 | 420 | 432 | 416 | |||||||||||
Minus: Cash and cash equivalents |
(1,890 | ) | (1,405 | ) | (1,008 | ) | (965 | ) | (922 | ) | ||||||
Minus: Loans to related parties |
(49 | ) | (40 | ) | (72 | ) | (65 | ) | (62 | ) | ||||||
Minus: Deferred tax assets |
(391 | ) | (382 | ) | (361 | ) | (348 | ) | (329 | ) | ||||||
Minus: Accounts payable |
(678 | ) | (762 | ) | (717 | ) | (655 | ) | (680 | ) | ||||||
Minus: Accounts payable to related parties |
(135 | ) | (134 | ) | (119 | ) | (255 | ) | (156 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(3,799 | ) | (2,577 | ) | (2,452 | ) | (2,546 | ) | (2,524 | ) | ||||||
Minus: Income tax payable |
(212 | ) | (200 | ) | (180 | ) | (181 | ) | (171 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
27,457 | 29,002 | 28,446 | 28,586 | 27,528 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of June 30, 2020 |
28,203 | |||||||||||||||
Operating income |
2,423 | |||||||||||||||
Income tax expense(2) |
(657 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,766 | |||||||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Adjustments to average invested capital and ROIC
in € M, except where otherwise specified
2020
|
June 30,
2020 |
March 31,
2020 |
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
| | | 155 | 149 | |||||||||||
Plus: Cumulative goodwill amortization |
| | | | | |||||||||||
Minus: Cash and cash equivalents |
| | | (4 | ) | (4 | ) | |||||||||
Minus: Loans to related parties |
| | | | | |||||||||||
Minus: Deferred tax assets |
| | | | | |||||||||||
Minus: Accounts payable |
| | | | | |||||||||||
Minus: Accounts payable to related parties |
| | | | | |||||||||||
Minus: Provisions and other current liabilities(1) |
| | | (4 | ) | (4 | ) | |||||||||
Minus: Income tax payable |
| | | | | |||||||||||
| | | | | | | | | | | | | | | | |
Invested capital |
| | | 147 | 141 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Adjustment to average invested capital as of June 30, 2020 |
58 | |||||||||||||||
Adjustment to operating income(3) |
3 | |||||||||||||||
Adjustment to income tax expense(3) |
(1 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
Adjustment to NOPAT |
2 | |||||||||||||||
| | | | | | | | | | | | | | | | |
16
Reconciliation of average invested capital and ROIC (Non-IFRS Measure)
in € M, except where otherwise specified
2020
|
June 30,
2020 |
March 31,
2020 |
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
34,190 | 34,072 | 32,935 | 33,324 | 32,105 | |||||||||||
Plus: Cumulative goodwill amortization |
421 | 430 | 420 | 432 | 416 | |||||||||||
Minus: Cash and cash equivalents |
(1,890 | ) | (1,405 | ) | (1,008 | ) | (969 | ) | (926 | ) | ||||||
Minus: Loans to related parties |
(49 | ) | (40 | ) | (72 | ) | (65 | ) | (62 | ) | ||||||
Minus: Deferred tax assets |
(391 | ) | (382 | ) | (361 | ) | (348 | ) | (329 | ) | ||||||
Minus: Accounts payable |
(678 | ) | (762 | ) | (717 | ) | (655 | ) | (680 | ) | ||||||
Minus: Accounts payable to related parties |
(135 | ) | (134 | ) | (119 | ) | (255 | ) | (156 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(3,799 | ) | (2,577 | ) | (2,452 | ) | (2,550 | ) | (2,528 | ) | ||||||
Minus: Income tax payable |
(212 | ) | (200 | ) | (180 | ) | (181 | ) | (171 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
27,457 | 29,002 | 28,446 | 28,733 | 27,669 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of June 30, 2020 |
28,261 | |||||||||||||||
Operating income(3) |
2,426 | |||||||||||||||
Income tax expense(2)(3) |
(658 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,768 | |||||||||||||||
ROIC in % |
6.3 |
% |
Adjustments to average invested capital and ROIC for the effect from IFRS 16
in € M, except where otherwise specified
2020
|
June 30,
2020 |
March 31,
2020 |
December 31,
2019 |
September 30,
2019 |
June 30,
2019 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
(4,421 | ) | (4,388 | ) | (4,356 | ) | (4,319 | ) | (4,172 | ) | ||||||
Plus: Cumulative goodwill amortization |
| | | | | |||||||||||
Minus: Cash and cash equivalents |
| | | | | |||||||||||
Minus: Loans to related parties |
| | | | | |||||||||||
Minus: Deferred tax assets |
3 | 3 | 2 | 4 | 4 | |||||||||||
Minus: Accounts payable |
| | | | | |||||||||||
Minus: Accounts payable to related parties |
| | | | | |||||||||||
Minus: Provisions and other current liabilities(1) |
(140 | ) | (143 | ) | (140 | ) | (144 | ) | (138 | ) | ||||||
Minus: Income tax payable |
| | | (4 | ) | (4 | ) | |||||||||
| | | | | | | | | | | | | | | | |
Invested capital |
(4,558 | ) | (4,529 | ) | (4,494 | ) | (4,463 | ) | (4,310 | ) | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Adjustment to average invested capital as of June 30, 2020 |
(4,471 | ) | ||||||||||||||
Adjustment to operating income |
(97 | ) | ||||||||||||||
Adjustment to income tax expense |
26 | |||||||||||||||
| | | | | | | | | | | | | | | | |
Adjustment to NOPAT |
(71 | ) |
17
Reconciliation of average invested capital and ROIC (Non-IFRS Measure, adjusted for the effect from IFRS 16)
in € M, except where otherwise specified
2020
|
June 30,
2020 |
March 31,
2020 |
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
29,769 | 29,684 | 28,579 | 29,005 | 27,933 | |||||||||||
Plus: Cumulative goodwill amortization |
421 | 430 | 420 | 432 | 416 | |||||||||||
Minus: Cash and cash equivalents |
(1,890 | ) | (1,405 | ) | (1,008 | ) | (969 | ) | (926 | ) | ||||||
Minus: Loans to related parties |
(49 | ) | (40 | ) | (72 | ) | (65 | ) | (62 | ) | ||||||
Minus: Deferred tax assets |
(388 | ) | (380 | ) | (359 | ) | (344 | ) | (325 | ) | ||||||
Minus: Accounts payable |
(678 | ) | (762 | ) | (717 | ) | (655 | ) | (680 | ) | ||||||
Minus: Accounts payable to related parties |
(135 | ) | (134 | ) | (119 | ) | (255 | ) | (156 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(3,940 | ) | (2,720 | ) | (2,592 | ) | (2,694 | ) | (2,666 | ) | ||||||
Minus: Income tax payable |
(212 | ) | (200 | ) | (180 | ) | (185 | ) | (175 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
22,899 | 24,473 | 23,952 | 24,270 | 23,359 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of June 30, 2020 |
23,790 | |||||||||||||||
Operating income(3) |
2,329 |
|||||||||||||||
Income tax expense(2)(3) |
(632 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,697 | |||||||||||||||
ROIC in % (adjusted for IFRS 16) |
7.1 | % |
Reconciliation of average invested capital and ROIC (unadjusted)
in € M, except where otherwise specified
2019
|
December 31,
2019 |
September 30,
2019 |
June 30,
2019 |
March 31,
2019 |
December 31,
2018 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
32,935 | 33,169 | 31,956 | 32,353 | 26,242 | |||||||||||
Plus: Cumulative goodwill amortization |
420 | 432 | 416 | 419 | 413 | |||||||||||
Minus: Cash and cash equivalents |
(1,008 | ) | (965 | ) | (922 | ) | (959 | ) | (2,146 | ) | ||||||
Minus: Loans to related parties |
(72 | ) | (65 | ) | (62 | ) | (81 | ) | (80 | ) | ||||||
Minus: Deferred tax assets |
(361 | ) | (348 | ) | (329 | ) | (309 | ) | (346 | ) | ||||||
Minus: Accounts payable |
(717 | ) | (655 | ) | (680 | ) | (708 | ) | (641 | ) | ||||||
Minus: Accounts payable to related parties |
(119 | ) | (255 | ) | (156 | ) | (210 | ) | (154 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(2,452 | ) | (2,546 | ) | (2,524 | ) | (2,604 | ) | (2,727 | ) | ||||||
Minus: Income tax payable |
(180 | ) | (181 | ) | (171 | ) | (161 | ) | (166 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
28,446 | 28,586 | 27,528 | 27,740 | 20,395 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of December 31, 2019 |
26,539 | |||||||||||||||
Operating income |
2,270 |
|||||||||||||||
Income tax expense(2) |
(565 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,705 |
18
Adjustments to average invested capital and ROIC
in € M, except where otherwise specified
2019
|
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
March 31,
2019(3) |
December 31,
2018(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
| 156 | 149 | 151 | 2,092 | |||||||||||
Plus: Cumulative goodwill amortization |
| | | | | |||||||||||
Minus: Cash and cash equivalents |
| (4 | ) | (4 | ) | (4 | ) | (45 | ) | |||||||
Minus: Loans to related parties |
| | | | | |||||||||||
Minus: Deferred tax assets |
| | | | (1 | ) | ||||||||||
Minus: Accounts payable |
| | | | (17 | ) | ||||||||||
Minus: Accounts payable to related parties |
| | | | | |||||||||||
Minus: Provisions and other current liabilities(1) |
| (4 | ) | (3 | ) | (3 | ) | (48 | ) | |||||||
Minus: Income tax payable |
| | | | | |||||||||||
| | | | | | | | | | | | | | | | |
Invested capital |
| 148 | 142 | 144 | 1,981 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Adjustment to average invested capital as of December 31, 2019 |
483 | |||||||||||||||
Adjustment to operating income(3) |
(79 |
) |
||||||||||||||
Adjustment to income tax expense(3) |
20 | |||||||||||||||
| | | | | | | | | | | | | | | | |
Adjustment to NOPAT |
(59 | ) |
Reconciliation of average invested capital and ROIC (Non-IFRS Measure)
in € M, except where otherwise specified
2019
|
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
March 31,
2019(3) |
December 31,
2018(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
32,935 | 33,325 | 32,105 | 32,504 | 28,334 | |||||||||||
Plus: Cumulative goodwill amortization |
420 | 432 | 416 | 419 | 413 | |||||||||||
Minus: Cash and cash equivalents |
(1,008 | ) | (969 | ) | (926 | ) | (963 | ) | (2,191 | ) | ||||||
Minus: Loans to related parties |
(72 | ) | (65 | ) | (62 | ) | (81 | ) | (80 | ) | ||||||
Minus: Deferred tax assets |
(361 | ) | (348 | ) | (329 | ) | (309 | ) | (347 | ) | ||||||
Minus: Accounts payable |
(717 | ) | (655 | ) | (680 | ) | (708 | ) | (658 | ) | ||||||
Minus: Accounts payable to related parties |
(119 | ) | (255 | ) | (156 | ) | (210 | ) | (154 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(2,452 | ) | (2,550 | ) | (2,527 | ) | (2,607 | ) | (2,775 | ) | ||||||
Minus: Income tax payable |
(180 | ) | (181 | ) | (171 | ) | (161 | ) | (166 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
28,446 | 28,734 | 27,670 | 27,884 | 22,376 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of December 31, 2019 |
27,022 | |||||||||||||||
Operating income(3) |
2,191 |
|||||||||||||||
Income tax expense(2)(3) |
(545 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,646 | |||||||||||||||
ROIC in % |
6.1 | % |
19
Adjustments to average invested capital and ROIC for the effect from the IFRS 16 Implementation
in € M, except where otherwise specified
2019
|
December 31,
2019 |
September 30,
2019 |
June 30,
2019 |
March 31,
2019 |
December 31,
2018 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
(4,356 | ) | (4,319 | ) | (4,172 | ) | (4,229 | ) | | |||||||
Plus: Cumulative goodwill amortization |
| | | | | |||||||||||
Minus: Cash and cash equivalents |
| | | | | |||||||||||
Minus: Loans to related parties |
| | | | | |||||||||||
Minus: Deferred tax assets |
2 | 4 | 4 | 5 | | |||||||||||
Minus: Accounts payable |
| | | | | |||||||||||
Minus: Accounts payable to related parties |
| | | | | |||||||||||
Minus: Provisions and other current liabilities(1) |
(140 | ) | (144 | ) | (138 | ) | (143 | ) | | |||||||
Minus: Income tax payable |
| (4 | ) | (4 | ) | (1 | ) | | ||||||||
| | | | | | | | | | | | | | | | |
Invested capital |
(4,494 | ) | (4,463 | ) | (4,310 | ) | (4,368 | ) | | |||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Adjustment to average invested capital as of December 31, 2019 |
(3,527 | ) | ||||||||||||||
Adjustment to operating income |
(75 |
) |
||||||||||||||
Adjustment to income tax expense |
18 | |||||||||||||||
| | | | | | | | | | | | | | | | |
Adjustment to NOPAT |
(57 | ) |
Reconciliation of average invested capital and ROIC (Non-IFRS Measure, adjusted for the effect from the IFRS 16 Implementation)
in € M, except where otherwise specified
2019
|
December 31,
2019 |
September 30,
2019(3) |
June 30,
2019(3) |
March 31,
2019(3) |
December 31,
2018(3) |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
28,579 | 29,006 | 27,933 | 28,275 | 28,334 | |||||||||||
Plus: Cumulative goodwill amortization |
420 | 432 | 416 | 419 | 413 | |||||||||||
Minus: Cash and cash equivalents |
(1,008 | ) | (969 | ) | (926 | ) | (963 | ) | (2,191 | ) | ||||||
Minus: Loans to related parties |
(72 | ) | (65 | ) | (62 | ) | (81 | ) | (80 | ) | ||||||
Minus: Deferred tax assets |
(359 | ) | (344 | ) | (325 | ) | (304 | ) | (347 | ) | ||||||
Minus: Accounts payable |
(717 | ) | (655 | ) | (680 | ) | (708 | ) | (658 | ) | ||||||
Minus: Accounts payable to related parties |
(119 | ) | (255 | ) | (156 | ) | (210 | ) | (154 | ) | ||||||
Minus: Provisions and other current liabilities(1) |
(2,592 | ) | (2,694 | ) | (2,665 | ) | (2,750 | ) | (2,775 | ) | ||||||
Minus: Income tax payable |
(180 | ) | (185 | ) | (175 | ) | (162 | ) | (166 | ) | ||||||
| | | | | | | | | | | | | | | | |
Invested capital |
23,952 | 24,271 | 23,360 | 23,516 | 22,376 | |||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Average invested capital as of December 31, 2019 |
23,495 | |||||||||||||||
Operating income(3) |
2,116 |
|||||||||||||||
Income tax expense(2)(3) |
(527 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | |
NOPAT |
1,589 | |||||||||||||||
ROIC in % (adjusted for IFRS 16) |
6.8 |
% |
20
Business metrics for Care Coordination
The measures for the North America Segment and the Asia-Pacific Segment discussed below include prior programs in which we participated and current and future programs that we will be participating in and will be reflected in the discussion of our business. Currently, in our North America Segment, sub-capitation, ESCO programs and other shared savings programs are included within the Member Months and Medical Cost Under Management calculations below. In the future, other programs may be included in the metrics below. Note that due to the timing required by CMS to review ESCO program data that we provide, estimates have been used to report these metrics in a timely manner. The Asia-Pacific Segment Care Coordination metric currently used for discussion purposes is patient encounters. These metrics may be developed further in future periods. These metrics are neither IFRS measures nor non-IFRS measures and are therefore not accompanied by, or reconciled to, IFRS measures.
Member months under medical cost management
In our North America Segment, member months under medical cost management is calculated by multiplying the number of members included in value-based reimbursement programs by the corresponding number of months these members participate in those programs ("Member Months"). In the aforementioned programs, we assume the risk associated with generating savings. The financial results are recorded in earnings as our performance is determined. The membership offerings within Care Coordination are sub-capitation arrangements and ESCO programs as well as other shared savings programs. An increase in patient membership may indicate future earnings or losses as our performance is determined through these managed care programs.
Medical cost under management
In our North America Segment, medical cost under management represents the management of medical costs associated with our patient membership in value-based programs. For ESCO and other shared savings programs, this is calculated by multiplying the Member Months in each program by the benchmark of expected medical costs per member per month. The sub-capitation calculation multiplies the premium per member of the program per month by the number of Member Months associated with the plan, as noted above.
Care Coordination patient encounters
In the North America Segment and the Asia-Pacific Segment, Care Coordination patient encounters represents the total patient encounters and procedures conducted by certain of our Care Coordination activities and, we believe, is an indicator of the revenue generated. Care Coordination patient encounters in the North America Segment is the sum of all encounters and procedures completed during the period by MedSpring Urgent Care Centers (in 2019), Azura Vascular Care, and National Cardiovascular Partners as well as patients in our Fresenius Medical Care Rx Bone Mineral Metabolism program. Care Coordination patient encounters in the Asia-Pacific Segment is the sum of all encounters for the following services: ambulant treatment services in day care hospitals, comprehensive and specialized health check-ups, inpatient and outpatient services, vascular access and other chronic treatment services.
III. Results of operations, financial position and net assets
The following sections summarize our results of operations, financial position and net assets as well as key performance indicators by reporting segment, as well as Corporate, for the periods indicated. We prepared the information consistent with the manner in which management internally disaggregates financial information to assist in making operating decisions and evaluating management performance.
21
Results of operations
Segment data (including Corporate)
in € M
|
For the three months ended
June 30, |
For the six months ended
June 30, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2020 | 2019 | 2020 | 2019 | |||||||||
Total revenue |
|||||||||||||
North America Segment |
3,240 | 3,061 | 6,426 | 5,948 | |||||||||
EMEA Segment |
687 | 648 | 1,366 | 1,301 | |||||||||
Asia-Pacific Segment |
450 | 458 | 893 | 886 | |||||||||
Latin America Segment |
170 | 172 | 338 | 334 | |||||||||
Corporate |
10 | 6 | 22 | 9 | |||||||||
| | | | | | | | | | | | | |
Total |
4,557 | 4,345 | 9,045 | 8,478 | |||||||||
| | | | | | | | | | | | | |
Operating income |
|||||||||||||
North America Segment |
609 | 429 | 1,073 | 801 | |||||||||
EMEA Segment |
78 | 96 | 179 | 235 | |||||||||
Asia-Pacific Segment |
63 | 69 | 140 | 164 | |||||||||
Latin America Segment |
11 | 6 | 18 | 17 | |||||||||
Corporate |
(105 | ) | (79 | ) | (199 | ) | (159 | ) | |||||
| | | | | | | | | | | | | |
Total |
656 | 521 | 1,211 | 1,058 | |||||||||
| | | | | | | | | | | | | |
Interest income |
11 | (2 | ) | 20 | 26 | ||||||||
Interest expense |
(103 | ) | (112 | ) | (216 | ) | (248 | ) | |||||
Income tax expense |
(137 | ) | (92 | ) | (237 | ) | (193 | ) | |||||
| | | | | | | | | | | | | |
Net income |
427 | 315 | 778 | 643 | |||||||||
Net income attributable to noncontrolling interests |
(76 | ) | (61 | ) | (144 | ) | (118 | ) | |||||
| | | | | | | | | | | | | |
Net income attributable to shareholders of FMC-AG & Co. KGaA |
351 | 254 | 634 | 525 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Revenue and operating income generated in countries outside the eurozone are subject to currency fluctuations. The three and six months ended June 30, 2020 and 2019 were positively impacted by the development of the euro against the U.S. dollar. For the three and six months ended June 30, 2020, approximately 71% of revenue and approximately 93% and 89% of operating income were generated in U.S. dollars, respectively.
22
Three months ended June 30, 2020 compared to three months ended June 30, 2019
Consolidated financials
Key indicators for the consolidated financial statements
in € M, except where otherwise specified
Health care services revenue increased by 5% as compared to the three months ended June 30, 2019. In addition to a 1% positive impact from foreign currency translation, health care services revenue increased by 4% driven by growth in same market treatments (2%), increases in organic revenue per treatment (2%) and contributions from acquisitions (1%), partially offset by the effect of closed or sold clinics (1%).
Dialysis treatments increased by 3% as a result of growth in same market treatments (2%) and contributions from acquisitions (1%).
At June 30, 2020, we owned, operated or managed 4,036 dialysis clinics compared to 3,996 dialysis clinics at June 30, 2019. During the three months ended June 30, 2020, we acquired 6 dialysis clinics, opened 33 dialysis clinics and combined or closed 5 clinics. The number of patients treated in dialysis clinics that we own, operate or manage increased by 2% to 347,683 at June 30, 2020 (June 30, 2019: 339,550).
Health care product revenue increased by 6%, including a 1% negative impact from foreign currency translation. At Constant Exchange Rates, health care product revenue increased by 7%. Dialysis product revenue increased by 5%. In addition to a 2% negative impact from foreign currency translation, dialysis product revenue increased by 7% driven by higher sales of products for acute care treatments and in-center disposables, partially offset by lower sales of machines for chronic treatment. Non-dialysis product revenue increased by 35% to €22 M from €17 M with virtually no foreign currency translation effects. The non-dialysis product revenue increase was due to higher sales of acute cardiopulmonary products.
The increase period over period in the gross profit margin was 0.9 percentage points. Foreign currency translation effects represented a 0.2 percentage point increase in the current period. The increase primarily reflects increases in the North America Segment, partially offset by decreases in the Asia-Pacific Segment. The increase in the North America segment was mainly attributable to lower costs for renal pharmaceuticals, the prior year effect of a reduction in patient attribution and a decreasing savings rate for ESCOs ("Prior Year ESCO effect"), COVID-19 related effects and a higher reimbursement rate. The decrease in the Asia-Pacific Segment was driven by an unfavorable impact from COVID-19 on Care Coordination activities, unfavorable foreign currency transaction effects and startup costs for dialysis clinics in China.
23
The decrease period over period in selling, general and administrative ("SG&A") expense as a percentage of revenue was 2.1 percentage points with virtually no impact from foreign currency translation effects in the current period. The decrease was primarily driven by decreases in the North America Segment and the Asia-Pacific Segment, partially offset by an unfavorable impact from Corporate. The decrease in the North America Segment was mainly driven by the recovery of COVID-19-related net valuation effects incurred during the first quarter as well as COVID-19-related meeting and travel savings, prior year effects of (a) the Prior Year ESCO Effect and (b) costs associated with the sustained improvement of our cost base ("Cost Optimization costs"), positive impact from income attributable to a consent agreement on certain pharmaceuticals and lower health insurance expense. The decrease in the Asia-Pacific Segment was due to favorable impacts from business growth and favorable foreign currency transaction effects, partially offset by an unfavorable impact from COVID-19 and higher employee share-based compensation. The unfavorable impact in Corporate was mainly driven by higher employee share-based compensation, higher costs related to the compliance monitor engaged in accordance with the DOJ and SEC non-prosecution agreement (see note 8 of the notes to the consolidated financial statements included in this report), and unfavorable foreign currency transaction effects.
The gain related to divestitures of Care Coordination activities was €5 M in the three months ended June 30, 2020, as compared to €11 M in the comparable period of 2019 primarily due to the divestiture of a cardiovascular business in the North America Segment in the prior year period.
Income from equity method investees decreased by 83% to €4 M from €22 M. The decrease was primarily driven by an impairment of a license held by Vifor FMC Renal Pharma Ltd. ("VFMCRP") based on an unfavorable clinical trial for CCX140.
The increase period over period in the operating income margin was 2.4 percentage points. Foreign currency translation effects represented a 0.2 percentage point increase in the current period. The increase in the current period was largely driven by the increase in the gross profit margin coupled with the decrease in SG&A expenses, as discussed above.
Delivered Operating Income increased by 26%. In addition to a 2% positive impact from foreign currency translation, Delivered Operating Income increased by 24% largely driven by increased operating income.
Net interest expense decreased by 20% to €92 M from €114 M with virtually no impact from foreign currency translation. The decrease was primarily due to the replacement of high interest-bearing bonds by debt instruments at lower interest rates and lower variable Libor-based interest rates.
Income tax expense increased to €137 M from €92 M. The effective tax rate increased to 24.3% from 22.7% for the same period of 2019 largely driven by the tax-free purchase liability gain from Xenios in the prior year period, the partially tax-deductible impairment of a license held by VFMCRP based on an unfavorable clinical trial for CCX140 and an increase in state-tax expense in the United States.
Net income attributable to noncontrolling interests increased by 25% to €76 M from €61 M. In addition to a 3% negative impact from foreign currency translation, net income attributable to noncontrolling interests increased by 22% due to higher earnings in entities in which we have less than 100% ownership.
Net income attributable to shareholders of FMC-AG & Co. KGaA increased by 38% to €351 M from €254 M. In addition to a 2% positive impact from foreign currency translation, net income attributable to shareholders of FMC-AG & Co. KGaA increased by 36% as a result of the combined effects of the items discussed above. COVID-19 resulted in a positive impact to net income attributable to shareholders of FMC-AG & Co. KGaA in the amount of €42 M for the three months ended June 30, 2020.
Basic earnings per share increased by 43%. In addition to a 2% positive impact from foreign currency translation, basic earnings per share increased by 41% primarily due to the increase in net income attributable to shareholders of FMC-AG & Co. KGaA described above coupled with a decrease in the average weighted number of shares outstanding for the period. The average weighted number of shares outstanding for the period decreased to approximately 292.7 M on June 30, 2020 (June 30, 2019: 303.5 M), primarily as a result of our share buy-back program (see note 2 of the notes to the consolidated financial statements (unaudited) included in this report).
We employed 124,736 people (full-time equivalents) as of June 30, 2020 (June 30, 2019: 119,631). This 4% increase was primarily due to organic growth in our business and acquisitions.
24
Consolidated operating performance on an adjusted basis
Management believes that there are certain distinct transactions or events for which the operating results should be adjusted to enhance transparency and comparability. We believe the following results (adjusted to exclude these items) should be analyzed in connection with the results presented above. For the three months ended June 30, 2020 and 2019, we identified the following transactions which, when excluded from the results disclosed above, may provide a reader with further useful information in assessing our performance:
The following table reconciles the key indicators for the consolidated financial statements in accordance with IFRS to the key indicators adjusted for the items described above. While we believe these adjustments provide additional clarity to the discussion of our operating results, the following table should only be viewed as a supplement to our results disclosed in accordance with IFRS above.
Consolidated operating performance on an adjusted basis
in € M, except where otherwise specified
The following discussions pertain to the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment and the measures we use to manage these segments.
25
North America Segment
Key indicators and business metrics for the North America Segment
in € M, except where otherwise specified
|
For the three months ended June 30 | Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
As
reported |
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | ||||||||||||||
Total North America Segment |
||||||||||||||||
Revenue |
3,240 | 3,061 | 6 | % | 2 | % | 4 | % | ||||||||
Health care services |
2,951 | 2,789 | 6 | % | 2 | % | 4 | % | ||||||||
Health care products |
289 | 272 | 6 | % | 2 | % | 4 | % | ||||||||
Operating income |
609 | 429 | 42 | % | 3 | % | 39 | % | ||||||||
Operating income margin in % |
18.8 | % | 14.0 | % | ||||||||||||
Delivered Operating Income(2) |
535 | 372 | 44 | % | 3 | % | 41 | % | ||||||||
Dialysis |
|
|
|
|
|
|||||||||||
Revenue |
2,891 | 2,783 | 4 | % | 2 | % | 2 | % | ||||||||
Number of dialysis treatments |
8,207,398 | 7,991,032 | 3 | % | ||||||||||||
Same market treatment growth in % |
2.1 | % | 3.4 | % | ||||||||||||
Operating income |
567 | 428 | 33 | % | 3 | % | 30 | % | ||||||||
Operating income margin in % |
19.6 | % | 15.4 | % | ||||||||||||
Delivered Operating Income(2) |
503 | 373 | 35 | % | 3 | % | 32 | % | ||||||||
Care Coordination |
|
|
|
|
|
|||||||||||
Revenue |
349 | 278 | 26 | % | 3 | % | 23 | % | ||||||||
Operating income |
42 | 1 | n.a. | n.a. | ||||||||||||
Operating income margin in % |
12.0 | % | 0.3 | % | ||||||||||||
Delivered Operating Income(2) |
32 | (1 | ) | n.a. | n.a. | |||||||||||
Member months under medical cost management(3)(4) |
174,150 | 165,353 | 5 | % | ||||||||||||
Medical cost under management(3)(4) |
1,144 | 1,103 | 4 | % | 2 | % | 2 | % | ||||||||
Care Coordination patient encounters(3) |
176,776 | 277,880 | (36 | )% |
Revenue
Dialysis revenue increased by 4% including a 2% positive impact resulting from foreign currency translation. At Constant Exchange Rates, dialysis revenue increased by 2%. Dialysis revenue is comprised of dialysis care revenue and health care product revenue.
Dialysis care revenue increased by 4% to €2,602 M from €2,511 M. In addition to a 2% positive impact from foreign currency translation, dialysis care revenue increased by 2% mainly due to growth in same market treatments (2%) and contributions from acquisitions (1%), partially offset by decreases in organic revenue per treatment (1%).
Dialysis treatments increased by 3% largely due to growth in same market treatments (2%) and contributions from acquisitions (1%). At June 30, 2020, 212,149 patients, an increase of 2% (June 30, 2019: 208,019), were treated in the 2,614 dialysis clinics (June 30, 2019: 2,583) that we own or operate in the North America Segment.
26
Health care product revenue increased by 6%. In addition to a 2% positive impact from foreign currency translation, health care product revenue increased by 4% driven by higher sales of products for acute care treatments.
Operating income margin
The increase period over period in the dialysis operating income margin was 4.2 percentage points with virtually no impact from foreign currency translation in the current period. The increase was primarily due to the recovery of COVID-19-related effects, including net valuation effects incurred during the first quarter as well as COVID-19-related meeting and travel savings and the effect of the suspended Medicare sequestration. Additionally, operating income margin was impacted by lower costs for renal pharmaceuticals, a higher reimbursement rate and an increase in income attributable to a consent agreement on certain pharmaceuticals, partially offset by incurred COVID-19 related expenses not eligible for CARES Act relief.
Delivered Operating Income
Dialysis Delivered Operating Income increased by 35%. In addition to a 3% positive impact from foreign currency translation, Delivered Operating Income increased by 32% mainly as a result of increased operating income.
Revenue
Care Coordination revenue increased by 26%. In addition to a 3% positive impact from foreign currency translation, Care Coordination revenue increased by 23% largely driven by an increase in organic revenue growth impacted by the Prior Year ESCO Effect (32%), partially offset by the effect of closed or sold centers (7%) and lower contributions from acquisitions (2%).
Operating income margin
The increase period over period in the Care Coordination operating income margin was 11.7 percentage points, with virtually no impact from foreign currency translation in the current period. The increase was mainly due to the Prior Year ESCO Effect as well as a positive effect from vascular access services driven by lower operating costs and higher volumes of procedures, partially offset by lower gains related to the divestiture of Care Coordination activities.
Delivered Operating Income
Care Coordination Delivered Operating Income increased to €32 M for the three months ended June 30, 2020 as compared to a loss of €1 M in the comparative period of 2019 mainly as the result of increased operating income, partially offset by an increase in income attributable to noncontrolling interests.
Care Coordination business metrics
Member months under medical cost management increased by 5% due to increases in member months related to payor programs and our existing ESCOs. See note 4 to the table "Key indicators and business metrics for the North America Segment," above.
Care Coordination's medical cost under management increased by 4%. Including a 2% positive impact from foreign currency translation, Care Coordination's medical cost under management increased by 2% due to the development of member months as described above. See note 4 to the table "Key indicators and business metrics for the North America Segment" above.
The decrease in patient encounters was primarily driven by decreased encounters for urgent care services as a result of the divestiture of the Medspring Urgent Care Center business in the second quarter of 2019.
North America Segment operating performance on an adjusted basis
Management believes that there are certain distinct transactions or events for which the operating results should be adjusted to enhance transparency and comparability. We believe the following results (adjusted to exclude these items) should be analyzed in connection with the results presented above. For the three months ended June 30, 2020 and 2019, we identified the following transactions that, when excluded from
27
the results disclosed above, may provide a reader with further useful information in assessing our performance:
The following table reconciles the key indicators for the North America Segment in accordance with IFRS to the key indicators adjusted for the items described above. While we believe these adjustments provide additional clarity to the discussion of our operating results, the following table should only be viewed as a supplement to our results disclosed in accordance with IFRS above.
North America Segment operating performance on an adjusted basis
in € M, except where otherwise specified
|
|
|
|
|
|
|
Change in % as adjusted | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Results
2020 |
Results
2019 |
NxStage
costs |
Cost
optimization costs |
(Gain) loss related to divestitures of
Care Coordination activities |
Results
2019 adjusted |
Current
rate |
Constant
Currency(1) |
|||||||||||||||||
Three months ended June 30 |
|||||||||||||||||||||||||
Operating income |
609 | 429 | 4 | 3 | (11 | ) | 425 | 44 | % | 41 | % | ||||||||||||||
Operating income margin in % |
18.8 | % | 14.0 | % | 13.9 | % | |||||||||||||||||||
Dialysis |
567 | 428 | 4 | 3 | | 435 | 30 | % | 28 | % | |||||||||||||||
Dialysis operating income margin in % |
19.6 | % | 15.4 | % | 15.6 | % | |||||||||||||||||||
Care Coordination |
42 | 1 | | | (11 | ) | (10 | ) | n.a. | n.a. | |||||||||||||||
Care Coordination operating income margin in % |
12.0 | % | 0.3 | % | (3.8 | )% |
EMEA Segment
Key indicators for the EMEA Segment
in € M, except where otherwise specified
|
For the three months
ended June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | As reported | |||||||||||||
Revenue |
687 | 648 | 6 | % | (2 | )% | 8 | % | ||||||||
Health care services |
341 | 335 | 2 | % | (2 | )% | 4 | % | ||||||||
Health care products |
346 | 313 | 11 | % | (1 | )% | 12 | % | ||||||||
Number of dialysis treatments |
2,544,891 | 2,500,323 | 2 | % | ||||||||||||
Same market treatment growth in % |
3.3 | % | 3.2 | % | ||||||||||||
Operating income |
78 | 96 | (19 | )% | 0 | % | (19 | )% | ||||||||
Operating income margin in % |
11.3 | % | 14.9 | % | ||||||||||||
Delivered Operating Income(2) |
77 | 94 | (19 | )% | (1 | )% | (18 | )% |
28
Revenue
Health care service revenue increased by 2%. Including a 2% negative impact resulting from foreign currency translation, health care service revenue increased by 4% largely as a result of growth in same market treatments (3%), increases in organic revenue per treatment (1%) and contributions from acquisitions (1%), partially offset by the effect of closed or sold clinics (1%).
Dialysis treatments increased by 2% mainly due to growth in same market treatments (3%) and contributions from acquisitions (1%), partially offset by the effect of closed or sold clinics (2%). As of June 30, 2020, 67,220 patients, an increase of 2% (June 30, 2019: 65,871), were treated at the 797 dialysis clinics (June 30, 2019: 783) that we own, operate or manage in the EMEA Segment.
Health care product revenue increased by 11% including a 1% negative impact from foreign currency translation. Dialysis product revenue increased by 10%. Including a 1% negative impact resulting from foreign currency translation, dialysis product revenue increased by 11% due to higher sales of products for acute care treatments, in-center disposables, home hemodialysis products and machines for chronic treatment. Non-Dialysis product revenue increased by 29% to €22 M from €17 M with virtually no impact from foreign currency translation, largely due to higher sales of acute cardiopulmonary products.
Operating income margin
The decrease period over period in the operating income margin was 3.6 percentage points. Foreign currency translation effects represented a 0.1 percentage point increase in the operating income margin. The decrease was mainly due to an unfavorable impact from income related to equity method investees driven by an impairment of a license held by VFMCRP based on an unfavorable clinical trial for CCX140.
Delivered Operating Income
Delivered Operating Income decreased by 19%. Including a 1% negative impact from foreign currency translation, Delivered Operating Income decreased by 18% primarily due to decreased operating income.
Asia-Pacific Segment
Key indicators and business metrics for the Asia-Pacific Segment
in € M, except where otherwise specified
|
For the three months
ended June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | As reported | |||||||||||||
Total Asia-Pacific Segment |
||||||||||||||||
Revenue |
450 | 458 | (2 | )% | 0 | % | (2 | )% | ||||||||
Health care services |
196 | 210 | (7 | )% | 2 | % | (9 | )% | ||||||||
Health care products |
254 | 248 | 3 | % | (1 | )% | 4 | % | ||||||||
Operating income |
63 | 69 | (9 | )% | 1 | % | (10 | )% | ||||||||
Operating income margin in % |
14.1 | % | 15.1 | % | ||||||||||||
Delivered Operating Income(2) |
62 | 67 | (7 | )% | 1 | % | (8 | )% | ||||||||
Dialysis |
|
|
|
|
|
|||||||||||
Revenue |
409 | 401 | 2 | % | 0 | % | 2 | % | ||||||||
Number of dialysis treatments |
1,138,528 | 1,138,226 | 0 | % | ||||||||||||
Same market treatment growth in % |
1.2 | % | 7.2 | % | ||||||||||||
Operating income |
70 | 64 | 8 | % | 2 | % | 6 | % | ||||||||
Operating income margin in % |
17.1 | % | 16.1 | % | ||||||||||||
Delivered Operating Income(2) |
68 | 63 | 8 | % | 1 | % | 7 | % | ||||||||
Care Coordination |
|
|
|
|
|
|||||||||||
Revenue |
41 | 57 | (28 | )% | (1 | )% | (27 | )% | ||||||||
Operating income |
(7 | ) | 5 | (243 | )% | (9 | )% | (234 | )% | |||||||
Operating income margin in % |
(16.1 | )% | 8.1 | % | ||||||||||||
Delivered Operating Income(2) |
(6 | ) | 4 | (248 | )% | (11 | )% | (237 | )% | |||||||
Care Coordination Patient Encounters(3) |
157,672 | 248,260 | (36 | )% |
29
Revenue
Dialysis revenue increased by 2% with virtually no impact resulting from foreign currency translation. At Constant Exchange Rates, dialysis revenue increased by 2%. Dialysis revenue is comprised of dialysis care revenue and health care product revenue.
Dialysis care service revenue increased by 1% to €155 M from €153 M. Including a 3% positive impact resulting from foreign currency translation, dialysis care service revenue decreased by 2% as a result of the effect of closed or sold clinics (7%), partially offset by an increase in organic revenue per treatment (3%), growth in same market treatments (1%) and contributions from acquisitions (1%).
Dialysis treatments remained stable as for the three months ended June 30, 2020 as compared to the corresponding period in 2019. As of June 30, 2020, 31,893 patients (June 30, 2019: 31,845) were treated at the 380 dialysis clinics (June 30, 2019: 399) that we own, operate or manage in the Asia-Pacific Segment.
Health care product revenue increased by 3%, including a 1% negative impact resulting from foreign currency translation. Dialysis product revenue increased by 2% to €254 M from €248 M. Including a 2% negative impact resulting from foreign currency translation, dialysis product revenue increased by 4% mainly a result of higher sales of in-center disposables and products for acute care treatments, partially offset by lower sales of machines for chronic treatment.
Operating income margin
The increase period over period in the operating income margin was 1.0 percentage points. Foreign currency translation effects represented a 0.2 percentage point increase in the operating income margin. The increase was primarily due to a favorable impact from business growth and favorable foreign currency transaction effects, partially offset by higher employee share-based compensation and lower income from equity method investees.
Delivered Operating Income
Delivered Operating Income increased by 8%. Including a 1% positive impact resulting from foreign currency translation, Delivered Operating Income increased by 7% mainly due to increased operating income.
Revenue
Care Coordination revenue decreased by 28%. Including a 1% negative impact resulting from foreign currency translation, Care Coordination revenue decreased by 27% mainly driven by a decrease in organic revenue as a result of COVID-19 (33%), partially offset by contributions from acquisitions (6%).
Operating income margin
The decrease period over period in the Care Coordination operating income margin was 24.2 percentage points. Foreign currency translation effects represented a 1.2 percentage point decrease in the operating income margin. The decrease was driven by an unfavorable impact from COVID-19.
Delivered Operating Income
Care Coordination Delivered Operating Income decreased by 248%. Including an 11% negative impact resulting from foreign currency translation, Care Coordination Delivered Operating Income decreased by 237% mainly as a result of decreased operating income.
30
Care Coordination business metrics
The number of patient encounters decreased primarily due to the impacts of COVID-19.
Latin America Segment
Key indicators for the Latin America Segment
in € M, except where otherwise specified
|
For the three months
ended June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | As reported | |||||||||||||
Revenue |
170 | 172 | (2 | )% | (26 | )% | 24 | % | ||||||||
Health care services |
119 | 121 | (1 | )% | (27 | )% | 26 | % | ||||||||
Health care products |
51 | 51 | (3 | )% | (22 | )% | 19 | % | ||||||||
Number of dialysis treatments |
1,456,234 | 1,329,151 | 10 | % | ||||||||||||
Same market treatment growth in % |
3.6 | % | 2.2 | % | ||||||||||||
Operating income |
11 | 6 | 85 | % | (25 | )% | 110 | % | ||||||||
Operating income margin in % |
6.4 | % | 3.4 | % | ||||||||||||
Delivered Operating Income(2) |
11 | 6 | 84 | % | (23 | )% | 107 | % |
Revenue
Health care service revenue decreased by 1%. Including a 27% negative impact resulting from foreign currency translation, health care service revenue increased by 26% as a result of increases in organic revenue per treatment (14%), contributions from acquisitions (8%) and growth in same market treatments (4%).
Dialysis treatments increased by 10% mainly due to contributions from acquisitions (6%) and growth in same market treatments (4%). As of June 30, 2020, 36,421 patients, an increase of 8% (June 30, 2019: 33,815), were treated at the 245 dialysis clinics (June 30, 2019: 231) that we own, operate or manage in the Latin America Segment.
Health care product revenue decreased by 3%. Including a 22% negative impact resulting from foreign currency translation, health care product revenue increased by 19% due to higher sales of in-center disposables and products for acute care treatments.
Operating income margin
The increase period over period in the operating income margin was 3.0 percentage points. Foreign currency translation effects represented a 0.6 percentage point increase in the operating income margin in the current period. The increase was mainly due to the impact from higher revenue, inflation-based higher reimbursement in Argentina and a favorable impact from acquisitions, partially offset by higher employee share-based compensation and unfavorable foreign currency transaction effects.
Delivered Operating Income
Delivered Operating Income increased by 84%. Including a 23% negative impact resulting from foreign currency translation, Delivered Operating Income increased by 107% due to increased operating income.
31
Six months ended June 30, 2020 compared to six months ended June 30, 2019
Consolidated financials
Key indicators for the consolidated financial statements
in € M, except where otherwise specified
Health care services revenue increased by 6% compared to the six months ended June 30, 2019. In addition to a 1% positive impact from foreign currency translation, health care services revenue increased by 5% driven by growth in same market treatments (3%), contributions from acquisitions (1%), an increase in dialysis days (1%) and increases in organic revenue per treatment (1%), partially offset by the effect of closed or sold clinics (1%).
Dialysis treatments increased by 4% as a result of growth in same market treatments (3%), contributions from acquisitions (1%) and an increase in dialysis days (1%), partially offset by the effect of closed or sold clinics (1%).
Health care product revenue increased by 8%, with virtually no impact from foreign currency translation. Dialysis product revenue increased by 7%. In addition to a 1% positive impact from foreign currency translation, dialysis product revenue increased by 8% driven by higher sales of products for acute care treatments, home hemodialysis products, in-center disposables and renal pharmaceuticals, partially offset by lower sales of machines for chronic treatment. Non-dialysis product revenue increased by 44% to €52 M from €36 M. Including a 1% negative impact from foreign currency translation effects, non-dialysis product revenue increased by 45% due to higher sales of acute cardiopulmonary products.
The increase period over period in the gross profit margin was 0.9 percentage points. Foreign currency translation effects represented a 0.2 percentage point increase in the current period. The increase primarily reflects increases in the North America Segment, partially offset by decreases in the Asia-Pacific Segment. The increase in the North America Segment was mainly attributable to lower costs for renal pharmaceuticals, a partial reversal of a revenue recognition adjustment for accounts receivable in legal dispute, the effect of the suspended Medicare sequestration and a higher reimbursement rate, partially offset by incurred COVID-19 related expenses not eligible for CARES Act relief. The decrease in the Asia-Pacific Segment was driven by an unfavorable impact from COVID-19 on Care Coordination activities, unfavorable foreign currency transaction effects, an unfavorable mix effect from acquisitions with lower margins and startup costs for dialysis clinics in China.
The decrease period over period in SG&A expense as a percentage of revenue was 0.3 percentage points with virtually no impact from foreign currency translation. The decrease was primarily driven by a decrease in the North America Segment, partially offset by increases at Corporate and in the EMEA Segment. The
32
decrease in the North America Segment was mainly driven by prior year impacts from (a) legal settlements, (b) integration costs associated with NxStage, (c) the Prior Year ESCO Effect and (d) Cost Optimization costs, lower health insurance expense in the current year and COVID-19-related meeting and travel savings. The unfavorable impact in Corporate was driven by higher costs related to the compliance monitor engaged in accordance with the DOJ and SEC non-prosecution agreement (see note 8 of the notes the consolidated financial statements included in this report), higher consulting expense and unfavorable foreign currency transaction effects. The increase in the EMEA Segment was largely due the reduction of a contingent consideration liability related to Xenios AG ("Xenios") in the prior year period.
The gain related to divestitures of Care Coordination activities was €29 M in the six months ended June 30, 2020, as compared to €11 M in the comparable period of 2019 primarily due to the divestiture of cardiovascular clinics in the North America Segment in the current year period.
Research and development expenses increased by 25% to €96 M from €77 M. The period over period increase, as a percentage of revenue, was 0.2 percentage points, largely driven by research and development activities at NxStage as well as in-center and home program development and research activities in the fields of digital connectivity and regenerative medicine.
Income from equity method investees decreased by 43% to €24 M from €43 M. The decrease was primarily driven by an impairment of a license held by VFMCRP based on an unfavorable clinical trial for CCX140.
The increase period over period in the operating income margin was 0.9 percentage points. Foreign currency translation effects represented a 0.2 percentage point increase in the current period. The increase in the current period was largely driven by the increase in the gross profit margin coupled with the decrease in SG&A expenses, as discussed above.
Delivered Operating Income increased by 14%. In addition to a 2% positive impact from foreign currency translation, Delivered Operating Income increased by 12% largely driven by increased operating income.
Net interest expense decreased by 12% to €196 M from €222 M. In addition to a 1% negative impact from foreign currency translation, net interest expense decreased by 13% primarily due to lower interest rates driven by the replacement of high interest-bearing bonds by debt instruments at lower interest rates and lower variable Libor-based interest rates, partially offset by a higher debt level.
Income tax expense increased by 23% to €237 M from €193 M. The effective tax rate increased slightly to 23.4% from 23.1% for the same period of 2019.
Net income attributable to noncontrolling interests increased by 22% to €144 M from €118 M. In addition to a 3% negative impact from foreign currency translation, net income attributable to noncontrolling interests increased by 19% due to higher earnings in entities in which we have less than 100% ownership.
Net income attributable to shareholders of FMC-AG & Co. KGaA increased by 21% to €634 M from €525 M. In addition to a 3% positive impact from foreign currency translation, net income attributable to shareholders of FMC-AG & Co. KGaA increased by 18% as a result of the combined effects of the items discussed above. COVID-19 resulted in a positive impact to net income attributable to shareholders of FMC-AG & Co. KGaA in the amount of €2 M for the six months ended June 30, 2020.
Basic earnings per share increased by 25%. In addition to a 3% positive impact from foreign currency translation, basic earnings per share increased by 22% primarily due to the increase in net income attributable to shareholders of FMC-AG & Co. KGaA described above, coupled with a decrease in the average weighted number of shares outstanding for the period. The average weighted number of shares outstanding for the period decreased to approximately 295.3 M on June 30, 2020 (June 30, 2019: 305.0 M), primarily as a result of our share buy-back program (see note 2 of the notes to the consolidated financial statements (unaudited) included in this report).
Consolidated operating performance on an adjusted basis
Management believes that there are certain distinct transactions or events for which the operating results should be adjusted to enhance transparency and comparability. We believe the following results (adjusted to exclude these items) should be analyzed in connection with the results presented above. For the six months ended June 30, 2020 and 2019, we identified the following transactions which, when excluded from the results disclosed above, may provide a reader with further useful information in assessing our performance:
33
The following table reconciles the key indicators for the consolidated financial statements in accordance with IFRS to the key indicators adjusted for the items described above. While we believe these adjustments provide additional clarity to the discussion of our operating results, the following table should only be viewed as a supplement to our results disclosed in accordance with IFRS above.
Consolidated operating performance on an adjusted basis
in € M, except where otherwise specified
The following discussions pertain to the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment and the measures we use to manage these segments.
34
North America Segment
Key indicators and business metrics for the North America Segment
in € M, except where otherwise specified
|
|
|
Change in % | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
For the six months ended June 30 | |||||||||||||||
|
|
Currency translation effects | Constant Currency(1) | |||||||||||||
|
2020 | 2019 | As reported | |||||||||||||
Total North America Segment |
||||||||||||||||
Revenue |
6,426 | 5,948 | 8 | % | 3 | % | 5 | % | ||||||||
Health care services |
5,859 | 5,469 | 7 | % | 2 | % | 5 | % | ||||||||
Health care products |
567 | 479 | 18 | % | 3 | % | 15 | % | ||||||||
Operating income |
1,073 | 801 | 34 | % | 3 | % | 31 | % | ||||||||
Operating income margin in % |
16.7 | % | 13.5 | % | ||||||||||||
Delivered Operating Income(2) |
934 | 690 | 35 | % | 3 | % | 32 | % | ||||||||
Dialysis |
|
|
|
|
|
|||||||||||
Revenue |
5,740 | 5,362 | 7 | % | 3 | % | 4 | % | ||||||||
Number of dialysis treatments |
16,303,730 | 15,698,880 | 4 | % | ||||||||||||
Same market treatment growth in % |
2.6 | % | 3.3 | % | ||||||||||||
Operating income |
984 | 760 | 29 | % | 3 | % | 26 | % | ||||||||
Operating income margin in % |
17.1 | % | 14.2 | % | ||||||||||||
Delivered Operating Income(2) |
863 | 657 | 31 | % | 3 | % | 28 | % | ||||||||
Care Coordination |
|
|
|
|
|
|||||||||||
Revenue |
686 | 586 | 17 | % | 3 | % | 14 | % | ||||||||
Operating income |
89 | 41 | 119 | % | 5 | % | 114 | % | ||||||||
Operating income margin in % |
13.0 | % | 6.9 | % | ||||||||||||
Delivered Operating Income(2) |
71 | 33 | 116 | % | 5 | % | 111 | % | ||||||||
Member months under medical cost management(3)(4) |
345,675 | 336,256 | 3 | % | ||||||||||||
Medical cost under management(3)(4) |
2,259 | 2,174 | 4 | % | 3 | % | 1 | % | ||||||||
Care Coordination patient encounters(3) |
384,017 | 550,233 | (30 | )% |
Revenue
Dialysis revenue increased by 7% including a 3% positive impact resulting from foreign currency translation. At Constant Exchange Rates, dialysis revenue increased by 4%. Dialysis revenue is comprised of dialysis care revenue and health care product revenue.
Dialysis care revenue increased by 6% to €5,173 M from €4,883 M. In addition to a 3% positive impact from foreign currency translation, dialysis care revenue increased by 3% mainly due to growth in same market treatments (3%) and contributions from acquisitions (1%), partially offset by decreases in organic revenue per treatment (1%).
Dialysis treatments increased by 4% largely due to growth in same market treatments (3%) and contributions from acquisitions (1%).
Health care product revenue increased by 18%. In addition to a 3% positive impact from foreign currency translation, health care product revenue increased by 15% driven by higher sales of products for acute care treatments, renal pharmaceuticals and home hemodialysis products.
35
Operating income margin
The increase period over period in the dialysis operating income margin was 2.9 percentage points. Foreign currency translation effects represented a 0.1 percentage point decrease in the current period. The increase was primarily due to lower costs for renal pharmaceuticals, the prior year effect from (a) legal settlements, (b) integration costs associated with NxStage and (c) Cost Optimization costs. Additionally, operating income margin was impacted by lower costs for health insurance, a favorable impact related to a partial reversal of a revenue recognition adjustment for accounts receivable in legal dispute, COVID-19-related meeting and travel savings and the effect of the suspended Medicare sequestration as well as increased reimbursement rates, partially offset by incurred COVID-19 related expenses not eligible for CARES Act relief and lower income attributable to a consent agreement on certain renal pharmaceuticals.
Delivered Operating Income
Dialysis Delivered Operating Income increased by 31%. In addition to a 3% positive impact from foreign currency translation, Delivered Operating Income increased by 28% mainly as a result of increased operating income, partially offset by an increase in income attributable to noncontrolling interests.
Revenue
Care Coordination revenue increased by 17%. In addition to a 3% positive impact from foreign currency translation, Care Coordination revenue increased by 14% largely driven by an increase in organic revenue growth impacted by the Prior Year ESCO Effect (19%) and contributions from acquisitions (1%), partially offset by the effect of closed or sold centers (6%).
Operating income margin
The increase period over period in the Care Coordination operating income margin was 6.1 percentage points with virtually no impact from foreign currency translation in the current period. The increase was mainly due to increased gains related to the divestiture of Care Coordination activities in the prior year period, the Prior Year ESCO Effect, a favorable impact from vascular access services driven by lower operating costs and higher volumes of procedures as well as a favorable impact from urgent care services, partially offset by an unfavorable impact from pharmacy services.
Delivered Operating Income
Care Coordination Delivered Operating Income increased by 116%. In addition to a 5% positive impact from foreign currency translation, Delivered Operating Income increased by 111% mainly as a result of increased operating income.
Care Coordination business metrics
Member months under medical cost management increased by 3% due to increases in member months related to payor programs, partially offset by a decrease in member months related to our existing ESCOs. See note 4 to the table "Key indicators and business metrics for the North America Segment," above.
Care Coordination's medical cost under management increased by 4%. Including a 3% positive impact from foreign currency translation, Care Coordination's medical cost under management increased by 1% due to the development of member months as described above. See note 4 to the table "Key indicators and business metrics for the North America Segment" above.
The decrease in patient encounters was primarily driven by decreased encounters for urgent care services as a result of the divestiture of the Medspring Urgent Care Center business in the second quarter of 2019.
36
North America Segment operating performance on an adjusted basis
Management believes that there are certain distinct transactions or events for which the operating results should be adjusted to enhance transparency and comparability. We believe the following results (adjusted to exclude these items) should be analyzed in connection with the results presented above. For the six months ended June 30, 2020 and 2019, we identified the following transactions that, when excluded from the results disclosed above, may provide a reader with further useful information in assessing our performance:
The following table reconciles the key indicators for the North America Segment in accordance with IFRS to the key indicators adjusted for the items described above. While we believe these adjustments provide additional clarity to the discussion of our operating results, the following table should only be viewed as a supplement to our results disclosed in accordance with IFRS above.
North America Segment operating performance on an adjusted basis
in € M, except where otherwise specified
|
|
|
|
|
(Gain) loss
related to divestitures of Care Coordination activities |
|
|
|
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
Change in % as adjusted | |||||||||||||||||||
|
Results
2020 |
Results
2019 |
NxStage
costs |
Cost
optimization costs |
Results
2019 adjusted |
Current
rate |
Constant
Currency(1) |
||||||||||||||||||
Six months ended June 30 |
|||||||||||||||||||||||||
Operating income |
1,073 | 801 | 20 | 7 | (11 | ) | 817 | 31 | % | 28 | % | ||||||||||||||
Operating income margin in % |
16.7 | % | 13.5 | % | 13.7 | % | |||||||||||||||||||
Dialysis |
984 | 760 | 20 | 7 | | 787 | 25 | % | 22 | % | |||||||||||||||
Dialysis operating income margin in % |
17.1 | % | 14.2 | % | 14.7 | % | |||||||||||||||||||
Care Coordination |
89 | 41 | | | (11 | ) | 30 | 205 | % | 197 | % | ||||||||||||||
Care Coordination operating income margin in % |
13.0 | % | 6.9 | % | 5.0 | % |
EMEA Segment
Key indicators for the EMEA Segment
in € M, except where otherwise specified
|
For the six months ended
June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
As
reported |
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | ||||||||||||||
Revenue |
1,366 | 1,301 | 5 | % | (1 | )% | 6 | % | ||||||||
Health care services |
682 | 659 | 3 | % | (2 | )% | 5 | % | ||||||||
Health care products |
684 | 642 | 7 | % | 0 | % | 7 | % | ||||||||
Number of dialysis treatments |
5,056,261 | 4,976,025 | 2 | % | ||||||||||||
Same market treatment growth in % |
2.8 | % | 3.6 | % | ||||||||||||
Operating income |
179 | 235 | (24 | )% | (1 | )% | (23 | )% | ||||||||
Operating income margin in % |
13.1 | % | 18.0 | % | ||||||||||||
Delivered Operating Income(2) |
177 | 232 | (23 | )% | 0 | % | (23 | )% |
37
Revenue
Health care service revenue increased by 3%. Including a 2% negative impact resulting from foreign currency translation, health care service revenue increased by 5% largely as a result of growth in same market treatments (3%), increases in organic revenue per treatment (1%), an increase in dialysis days (1%) and contributions from acquisitions (1%), partially offset by the effect of closed or sold clinics (1%).
Dialysis treatments increased by 2% mainly due to growth in same market treatments (3%) and an increase in dialysis days (1%), partially offset by the effect of closed or sold clinics (2%).
Health care product revenue increased by 7%, with virtually no impact from foreign currency translation. Dialysis product revenue increased by 5%. Including a 1% negative impact from foreign currency translation, dialysis product revenue increased by 6% due to higher sales of products for acute care treatments, home hemodialysis products and in-center disposables, partially offset by lower sales of machines for chronic treatment. Non-Dialysis product revenue increased by 29% to €46 M from €36 M largely due to higher sales of acute cardiopulmonary products.
Operating income margin
The decrease period over period in the operating income margin was 4.9 percentage points. Foreign currency translation effects represented a 0.1 percentage point increase in the operating income margin. The decrease was mainly due to the reduction of a contingent consideration liability related to Xenios in the prior year period, an unfavorable impact from income from equity method investees, increased expenses driven by COVID-19 and higher personnel expense in certain countries.
Delivered Operating Income
Delivered Operating Income decreased by 23%, with virtually no impact from foreign currency translation, primarily due to decreased operating income.
Asia-Pacific Segment
Key indicators and business metrics for the Asia-Pacific Segment
in € M, except where otherwise specified
|
For the six months ended
June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
As
reported |
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | ||||||||||||||
Total Asia-Pacific Segment |
||||||||||||||||
Revenue |
893 | 886 | 1 | % | 1 | % | 0 | % | ||||||||
Health care services |
414 | 409 | 1 | % | 2 | % | (1 | )% | ||||||||
Health care products |
479 | 477 | 1 | % | 0 | % | 1 | % | ||||||||
Operating income |
140 | 164 | (15 | )% | 0 | % | (15 | )% | ||||||||
Operating income margin in % |
15.7 | % | 18.5 | % | ||||||||||||
Delivered Operating Income(2) |
137 | 160 | (14 | )% | 1 | % | (15 | )% | ||||||||
Dialysis |
||||||||||||||||
Revenue |
792 | 777 | 2 | % | 1 | % | 1 | % | ||||||||
Number of dialysis treatments |
2,284,425 | 2,237,630 | 2 | % | ||||||||||||
Same market treatment growth in % |
2.9 | % | 7.2 | % | ||||||||||||
Operating income |
144 | 154 | (6 | )% | 1 | % | (7 | )% | ||||||||
Operating income margin in % |
18.2 | % | 19.8 | % | ||||||||||||
Delivered Operating Income(2) |
141 | 150 | (6 | )% | 1 | % | (7 | )% | ||||||||
Care Coordination |
||||||||||||||||
Revenue |
101 | 109 | (8 | )% | (1 | )% | (7 | )% | ||||||||
Operating income |
(4 | ) | 10 | (143 | )% | (7 | )% | (136 | )% | |||||||
Operating income margin in % |
(4.5 | )% | 9.6 | % | ||||||||||||
Delivered Operating Income(2) |
(4 | ) | 10 | (136 | )% | (7 | )% | (129 | )% | |||||||
Care Coordination Patient Encounters(3) |
388,011 | 464,580 | (16 | )% |
38
Revenue
Dialysis revenue increased by 2% including a 1% positive impact resulting from foreign currency translation. At Constant Exchange Rates, dialysis revenue increased by 1%. Dialysis revenue is comprised of dialysis care revenue and health care product revenue.
Dialysis care service revenue increased by 4% to €313 M from €300 M. Including a 3% positive impact resulting from foreign currency translation, dialysis care service revenue increased by 1% as a result of growth in same market treatments (3%), increases in organic revenue per treatment (2%) and an increase in dialysis days (1%), partially offset by the effect of closed or sold clinics (5%).
Dialysis treatments increased by 2% mainly due to growth in same market treatments (3%) and an increase in dialysis days (1%), partially offset by the effect of closed or sold clinics (2%).
Health care product revenue increased by 1% with virtually no impact resulting from foreign currency translation. Dialysis product revenue remained relatively stable with virtually no impact from foreign currency translation. Non-Dialysis product revenue increased to €5 M (2019: €0 M) due to higher sales of acute cardiopulmonary products.
Operating income margin
The decrease period over period in the operating income margin was 1.6 percentage points. Foreign currency translation effects represented a 0.1 percentage point decrease in the operating income margin. The decrease was primarily due to impacts from unfavorable foreign currency transaction effects and lower income from equity method investees, partially offset by a gain related to the deconsolidation of clinics.
Delivered Operating Income
Delivered Operating Income decreased by 6%. Including a 1% positive impact resulting from foreign currency translation, Delivered Operating Income decreased by 7% mainly due to decreased operating income.
Revenue
Care Coordination revenue decreased by 8%. Including a 1% negative impact resulting from foreign currency translation, Care Coordination revenue decreased by 7% mainly driven by decreases in organic revenue as a result of COVID-19 (14%) and the effects of closed or sold centers (1%), partially offset by contributions from acquisitions (8%).
Operating income margin
The decrease period over period in the Care Coordination operating income margin was 14.1 percentage points. Foreign currency translation effects represented a 0.7 percentage point decrease in the operating income margin. The decrease was driven by unfavorable effects related to COVID-19.
Delivered Operating Income
Care Coordination Delivered Operating Income decreased by 136%. In addition to a 7% negative impact resulting from foreign currency translation, Care Coordination Delivered Operating Income decreased by 129% mainly as a result of decreased operating income.
Care Coordination business metrics
The number of patient encounters decreased primarily due to the impacts of COVID-19.
39
Latin America Segment
Key indicators for the Latin America Segment
in € M, except where otherwise specified
|
For the six months ended
June 30 |
Change in % | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
As
reported |
Currency
translation effects |
Constant
Currency(1) |
|||||||||||||
|
2020 | 2019 | ||||||||||||||
Revenue |
338 | 334 | 1 | % | (23 | )% | 24 | % | ||||||||
Health care services |
240 | 236 | 2 | % | (25 | )% | 27 | % | ||||||||
Health care products |
98 | 98 | (1 | )% | (18 | )% | 17 | % | ||||||||
Number of dialysis treatments |
2,881,731 | 2,607,728 | 11 | % | ||||||||||||
Same market treatment growth in % |
4.2 | % | 1.5 | % | ||||||||||||
Operating income |
18 | 17 | 3 | % | (8 | )% | 11 | % | ||||||||
Operating income margin in % |
5.3 | % | 5.2 | % | ||||||||||||
Delivered Operating Income(2) |
18 | 17 | 3 | % | (9 | )% | 12 | % |
Revenue
Health care service revenue increased by 2%. Including a 25% negative impact resulting from foreign currency translation, health care service revenue increased by 27% as a result of increases in organic revenue per treatment (15%), contributions from acquisitions (8%) and growth in same market treatments (4%).
Dialysis treatments increased by 11% mainly due to contributions from acquisitions (6%), growth in same market treatments (4%) and an increase in dialysis days (1%).
Health care product revenue decreased by 1%. Including a 18% negative impact resulting from foreign currency translation, health care product revenue increased by 17% due to higher sales of in-center disposables and products for acute care treatments.
Operating income margin
The increase period over period in the operating income margin was 0.1 percentage points. Foreign currency translation effects represented a 0.7 percentage point increase in the operating income margin in the current period. The increase was mainly due to unfavorable foreign currency transaction effects.
Delivered Operating Income
Delivered Operating Income increased by 3%. Including a 9% negative impact resulting from foreign currency translation, Delivered Operating Income increased by 12% due to increased operating income.
Financial position
Sources of liquidity
Our primary sources of liquidity are typically cash provided by operating activities, cash provided by short-term debt from third parties and related parties, proceeds from the issuance of long-term debt and divestitures. We require this capital primarily to finance working capital needs, fund acquisitions, operate clinics, develop free-standing renal dialysis clinics and other health care facilities, purchase equipment for existing or new renal dialysis clinics and production sites, repay debt, pay dividends and repurchase shares, (see "Net cash provided by (used in) investing activities" and "Net cash provided by (used in) financing activities" below).
As of June 30, 2020, our available borrowing capacity resulting from unutilized credit facilities amounted to approximately €2.5 billion. The Amended 2012 Credit Agreement accounted for approximately €1.4 billion in unutilized available borrowing capacity.
40
In our long-term financial planning, we focus primarily on the net leverage ratio, a Non-IFRS measure, see "II. Discussion of measuresNon-IFRS measuresNet leverage ratio (Non-IFRS Measure)" above. At June 30, 2020 and December 31, 2019, the net leverage ratio was 2.8 and 3.2, respectively.
At June 30, 2020, we had cash and cash equivalents of €1,889 M (December 31, 2019: €1,008 M).
Free cash flow (Net cash provided by (used in) operating activities, after capital expenditures, before acquisitions and investments) amounted to €2,407 M and €435 M for the six months ended June 30, 2020 and June 30, 2019, respectively. Free cash flow is a Non-IFRS Measure and is reconciled to net cash provided by (used in) operating activities, the most directly comparable IFRS measure, see "II. Discussion of measuresNon-IFRS measuresCash flow measures" above. Free cash flow in percent of revenue was 26.6% and 5.1% for the six months ended June 30, 2020 and 2019, respectively.
Net cash provided by (used in) operating activities
In the first six months of 2020, net cash provided by operating activities was €2,903 M as compared to net cash provided by operating activities of €928 M in the first six months of 2019. Net cash provided by operating activities in percent of revenue increased to 32% for the first six months of 2020 as compared to 11% for 2019. Cash provided by (used in) operating activities is impacted by the profitability of our business, the development of our working capital, principally inventories, receivables and cash outflows that occur due to a number of specific items as discussed below. The increase in net cash provided by operating activities was largely driven by U.S. federal relief funding and advanced payments under the CARES Act and other COVID-19 relief (see note 2 of the notes to the consolidated financial statements included in this report), including lower tax payments in the U.S., as well as working capital improvement driven by a positive effect from cash collections.
The profitability of our business depends significantly on reimbursement rates for our services. Approximately 80% of our revenue is generated by providing health care services, a major portion of which is reimbursed by either public health care organizations or private insurers. For the six months ended June 30, 2020, approximately 33% of our consolidated revenue was attributable to reimbursements from U.S. federal health care benefit programs, such as Medicare and Medicaid. Legislative changes could affect Medicare reimbursement rates for a significant portion of the services we provide as well as the scope of Medicare coverage. A decrease in reimbursement rates or the scope of coverage could have a material adverse effect on our business, financial position and results of operations and thus on our capacity to generate cash flow. See "I. Overview," above.
We intend to continue to address our current cash and financing requirements using cash provided by operating activities, our existing and future credit agreements, issuances under our commercial paper program (see note 5 of the notes to the consolidated financial statements (unaudited) included in this report) as well as from the use of our Accounts Receivable Facility. In addition, to finance acquisitions or meet other needs, we expect to successfully complete long-term financing arrangements, such as the issuance of bonds. We aim to preserve financial resources with a minimum of €500 M of committed and unutilized credit facilities.
Net cash provided by (used in) operating activities depends on the collection of accounts receivable. Commercial customers and government institutions generally have different payment cycles. Lengthening their payment cycles could have a material adverse effect on our capacity to generate cash flow. In addition, we could face difficulties in enforcing and collecting accounts receivable under the legal systems of, and due to the economic conditions in, some countries. Accounts receivable balances, net of valuation allowances, represented Days Sales Outstanding ("DSO") of 53 days at June 30, 2020, a decrease as compared to 73 days at December 31, 2019.
DSO by segment is calculated by dividing the segment's accounts and other receivable and contract liabilities, converted to euro using the average exchange rate for the period presented, less any sales or value added tax included in the receivables, by the average daily sales for the last twelve months of that segment, converted to euro using the average exchange rate for the period. Receivables and revenues are adjusted for amounts related to acquisitions and divestitures made within the reporting period with a
41
purchase price above a €50 M threshold as defined in the Amended 2012 Credit Agreement. The development of DSO by reporting segment is shown in the table below:
Development of days sales outstanding
|
June 30,
2020 |
December 31,
2019 |
Increase/decrease primarily driven by: | |||||
---|---|---|---|---|---|---|---|---|
North America Segment |
30 | 58 | Federal relief funding and advanced payments under the CARES Act and other COVID-19 relief | |||||
EMEA Segment |
92 | 96 | Improvement of payment collections in the region | |||||
Asia-Pacific Segment |
113 | 113 | Remained stable | |||||
Latin America Segment |
139 | 127 | Periodic delays in payment of public health care organizations in certain countries | |||||
FMC-AG & Co. KGaA average days sales outstanding |
53 | 73 |
Due to the fact that a large portion of our reimbursement is provided by public health care organizations and private insurers, we expect that most of our accounts receivable will be collectible.
Net cash provided by (used in) investing activities
In the first six months of 2020, net cash used in investing activities was €593 M as compared to net cash used in investing activities of €2,392 M in the comparable period of 2019. The following table shows our capital expenditures for property, plant and equipment, net of proceeds from sales of property, plant and equipment as well as acquisitions, investments and purchases of intangible assets for the first six months of 2020 and 2019:
Capital expenditures (net), acquisitions, investments and purchases of intangible assets
in € M
The majority of our capital expenditures in the first six months of 2020 was used for maintaining existing clinics, equipping new clinics, maintaining and expanding production facilities, capitalization of machines provided to our customers and for Care Coordination as well as capitalization of certain development costs. Capital expenditures decreased to approximately 5% of total revenue in the first six months of 2020 as compared to approximately 6% of total revenue during the same period in 2019.
Acquisitions in the first six months of 2019 were primarily driven by the acquisition of NxStage on February 21, 2019 as well as dialysis clinics.
In 2020, we anticipate capital expenditures of €1.1 to €1.3 billion and expect to make acquisitions and investments, excluding investments in debt securities, of approximately €500 to €700 M.
42
Net cash provided by (used in) financing activities
In the first six months of 2020, net cash used in financing activities was €1,402 M as compared to net cash provided by financing activities of €223 M in the first six months of 2019.
In the first six months of 2020, cash was mainly used in the repayment of long-term debt (including the repayment of Convertible Bonds at maturity in January 2020 and the early repayment of the EUR term loan 2017 / 2020 under the Amended 2012 Credit Agreement (originally due on July 30, 2020) on May 29, 2020) and short-term debt (including short-term debt from related parties), repayments of the Accounts Receivable Facility, shares repurchased as part of a share buy-back program, the repayment of lease liabilities as well as distributions to noncontrolling interests, partially offset by proceeds from long-term debt (including proceeds from the issuance of bonds in an aggregate principal amount of €1,250 M on May 29, 2020) and short-term debt (including short-term debt from related parties).
In the first six months of 2019, cash was mainly provided by proceeds from long-term debt (including additional drawings under the euro revolving credit facility of the Amended 2012 Credit Agreement and the issuance of bonds with a principal amount of $500 M) and short-term debt as well as the utilization of the accounts receivable facility, partially offset by the payment of dividends, repayment of lease liabilities, shares repurchased as part of a share buy-back program, repayments of long-term debt and short-term debt as well as repayments of short-term debt from related parties.
Balance sheet structure
Total assets as of June 30, 2020 increased by 4% to €34.2 billion as compared to €32.9 billion at December 31, 2019. In addition to a 1% negative impact resulting from foreign currency translation, total assets increased by 5% to €34.4 billion from €32.9 billion primarily driven by increases in cash and cash equivalents, property, plant and equipment as well as inventories.
Current assets as a percent of total assets increased to 24% at June 30, 2020 as compared to 22% at December 31, 2019, primarily driven by an increase in cash and cash equivalents as well as an increase in inventories. The equity ratio, the ratio of our equity divided by total liabilities and shareholders' equity, decreased to 39% at June 30, 2020 as compared to 40% at December 31, 2019, primarily driven by an increase in accrued expenses and other current liabilities related to U.S. federal relief funding and advanced payments under the CARES Act and other COVID-19 relief. ROIC increased to 6.3% at June 30, 2020 as compared to 6.1% at December 31, 2019. Adjusted for IFRS 16, ROIC was 7.1% at June 30, 2020. For further information on ROIC, see "II. Discussion of measuresNon-IFRS measures" above.
Report on post-balance sheet date events
Refer to note 11 in the notes to the consolidated financial statements (unaudited) included in this report.
Recently issued accounting standards
Refer to note 1 of the notes to the consolidated financial statements (unaudited) included in this report for information regarding recently issued accounting standards.
43
FRESENIUS MEDICAL CARE AG & Co. KGaA
Financial statements
Consolidated statements of income
(unaudited)
Consolidated statements of income
in € thousands ("THOUS"), except per share data
|
|
For the three months
ended June 30, |
For the six months ended
June 30, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Note | 2020 | 2019 | 2020 | 2019 | ||||||||||
Revenue: |
|||||||||||||||
Health care services |
3,613,869 | 3,455,197 | 7,208,532 | 6,772,505 | |||||||||||
Health care products |
943,476 | 889,835 | 1,836,609 | 1,705,084 | |||||||||||
| | | | | | | | | | | | | | | |
|
2a, 10 | 4,557,345 | 4,345,032 | 9,045,141 | 8,477,589 | ||||||||||
Costs of revenue: |
|
|
|
|
|
||||||||||
Health care services |
2,692,222 | 2,605,732 | 5,392,200 | 5,111,155 | |||||||||||
Health care products |
429,113 | 408,378 | 806,163 | 770,224 | |||||||||||
| | | | | | | | | | | | | | | |
|
3,121,335 | 3,014,110 | 6,198,363 | 5,881,379 | |||||||||||
Gross profit |
1,436,010 |
1,330,922 |
2,846,778 |
2,596,210 |
|||||||||||
Operating (income) expenses: |
|
|
|
|
|
||||||||||
Selling, general and administrative |
738,077 | 795,163 | 1,592,539 | 1,515,336 | |||||||||||
(Gain) loss related to divestitures of Care Coordination activities |
(4,592 | ) | (11,400 | ) | (28,924 | ) | (11,400 | ) | |||||||
Research and development |
2b | 50,506 | 48,383 | 96,423 | 76,981 | ||||||||||
Income from equity method investees |
10 | (3,905 | ) | (22,481 | ) | (24,314 | ) | (42,514 | ) | ||||||
| | | | | | | | | | | | | | | |
Operating income |
655,924 | 521,257 | 1,211,054 | 1,057,807 | |||||||||||
Other (income) expense: |
|
|
|
|
|
||||||||||
Interest income |
2c | (11,187 | ) | 2,046 | (19,938 | ) | (25,898 | ) | |||||||
Interest expense |
103,127 | 112,309 | 216,097 | 248,101 | |||||||||||
| | | | | | | | | | | | | | | |
Income before income taxes |
563,984 | 406,902 | 1,014,895 | 835,604 | |||||||||||
Income tax expense |
137,068 | 92,265 | 237,610 | 193,209 | |||||||||||
Net income |
426,916 | 314,637 | 777,285 | 642,395 | |||||||||||
Net income attributable to noncontrolling interests |
75,944 | 60,857 | 143,594 | 117,866 | |||||||||||
| | | | | | | | | | | | | | | |
Net income attributable to shareholders of FMC-AG & Co. KGaA |
2e | 350,972 | 253,780 | 633,691 | 524,529 | ||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Basic earnings per share |
2d | 1.20 | 0.84 | 2.15 | 1.72 | ||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Diluted earnings per share |
2d | 1.20 | 0.84 | 2.14 | 1.72 | ||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
44
FRESENIUS MEDICAL CARE AG & Co. KGaA
Consolidated statements of comprehensive income
(unaudited)
Consolidated statements of comprehensive income
in € THOUS
|
For the three months
ended June 30, |
For the six months
ended June 30, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2020 | 2019 | 2020 | 2019 | |||||||||
Net income |
426,916 | 314,637 | 777,285 | 642,395 | |||||||||
| | | | | | | | | | | | | |
Other comprehensive income (loss): |
|||||||||||||
Components that will not be reclassified to profit or loss: |
|||||||||||||
Equity method investeesshare of OCI |
51,304 | | 51,304 | | |||||||||
FVOCI equity investments |
18,829 | | 18,829 | | |||||||||
Actuarial gain (loss) on defined benefit pension plans |
5,200 | | 5,200 | | |||||||||
Income tax (expense) benefit related to components of other comprehensive income not reclassified |
(4,712 | ) | | (4,712 | ) | | |||||||
| | | | | | | | | | | | | |
|
70,621 | | 70,621 | | |||||||||
Components that may be reclassified subsequently to profit or loss: |
|||||||||||||
Gain (loss) related to foreign currency translation |
(278,277 | ) | (144,919 | ) | (172,599 | ) | 130,430 | ||||||
FVOCI debt securities |
31,405 | | 31,405 | | |||||||||
Gain (loss) related to cash flow hedges |
(809 | ) | (12,322 | ) | 6,618 | (12,725 | ) | ||||||
Cost of hedging |
1,352 | 131 | 213 | (762 | ) | ||||||||
Income tax (expense) benefit related to components of other comprehensive income that may be reclassified |
(5,425 | ) | 2,743 | (7,303 | ) | 3,169 | |||||||
| | | | | | | | | | | | | |
|
(251,754 | ) | (154,367 | ) | (141,666 | ) | 120,112 | ||||||
Other comprehensive income (loss), net of tax |
(181,133 | ) | (154,367 | ) | (71,045 | ) | 120,112 | ||||||
| | | | | | | | | | | | | |
Total comprehensive income |
245,783 | 160,270 | 706,240 | 762,507 | |||||||||
Comprehensive income attributable to noncontrolling interests |
54,524 | 45,552 | 144,618 | 123,574 | |||||||||
| | | | | | | | | | | | | |
Comprehensive income attributable to shareholders of FMC-AG & Co. KGaA |
191,259 | 114,718 | 561,622 | 638,933 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
45
FRESENIUS MEDICAL CARE AG & Co. KGaA
Consolidated balance sheets
(unaudited)
Consolidated balance sheets
in € THOUS, except share data
|
Note |
June 30,
2020 |
December 31,
2019 |
||||||
---|---|---|---|---|---|---|---|---|---|
Assets |
|||||||||
Cash and cash equivalents |
1,889,433 | 1,007,723 | |||||||
Trade accounts and other receivables |
3,448,171 | 3,421,346 | |||||||
Accounts receivable from related parties |
3 | 133,214 | 159,196 | ||||||
Inventories |
4 | 1,840,855 | 1,663,278 | ||||||
Other current assets |
869,848 | 913,603 | |||||||
| | | | | | | | | |
Total current assets |
8,181,521 | 7,165,146 | |||||||
Property, plant and equipment |
4,193,855 |
4,190,281 |
|||||||
Right-of-use assets |
4,428,423 | 4,325,115 | |||||||
Intangible assets |
1,447,308 | 1,426,330 | |||||||
Goodwill |
14,060,205 | 14,017,255 | |||||||
Deferred taxes |
391,344 | 361,196 | |||||||
Investment in equity method investees |
10 | 686,025 | 696,872 | ||||||
Other non-current assets |
801,172 | 752,540 | |||||||
| | | | | | | | | |
Total non-current assets |
26,008,332 | 25,769,589 | |||||||
| | | | | | | | | |
Total assets |
34,189,853 | 32,934,735 | |||||||
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Liabilities |
|||||||||
Accounts payable |
678,121 | 716,526 | |||||||
Accounts payable to related parties |
3 | 135,309 | 118,663 | ||||||
Current provisions and other current liabilities |
2e | 4,091,404 | 2,864,250 | ||||||
Short-term debt |
5 | 875,631 | 1,149,988 | ||||||
Short-term debt from related parties |
5 | 3,000 | 21,865 | ||||||
Current portion of long-term debt |
6 | 1,512,658 | 1,447,239 | ||||||
Current portion of long-term lease liabilities |
622,321 | 622,227 | |||||||
Current portion of long-term lease liabilities from related parties |
3 | 20,592 | 16,514 | ||||||
Income tax payable |
124,977 | 101,793 | |||||||
| | | | | | | | | |
Total current liabilities |
8,064,013 | 7,059,065 | |||||||
Long-term debt, less current portion |
6 |
6,273,995 |
6,458,318 |
||||||
Long-term lease liabilities, less current portion |
4,039,325 | 3,959,865 | |||||||
Long-term lease liabilities from related parties, less current portion |
3 | 129,995 | 106,432 | ||||||
Non-current provisions and other non-current liabilities |
743,293 | 616,916 | |||||||
Pension liabilities |
708,991 | 689,195 | |||||||
Income tax payable |
87,185 | 78,005 | |||||||
Deferred taxes |
820,434 | 739,702 | |||||||
| | | | | | | | | |
Total non-current liabilities |
12,803,218 | 12,648,433 | |||||||
| | | | | | | | | |
Total liabilities |
20,867,231 | 19,707,498 | |||||||
Shareholders' equity: |
|
|
|
||||||
Ordinary shares, no par value, €1.00 nominal value, 374,165,226 shares authorized, 304,607,990 issued and 292,812,888 outstanding as of June 30, 2020 and 374,165,226 shares authorized, 304,436,876 issued and 298,329,247 outstanding as of December 31, 2019 |
304,608 |
304,437 |
|||||||
Treasury stock, at cost |
2d | (736,490 | ) | (370,502 | ) | ||||
Additional paid-in capital |
3,590,176 | 3,607,662 | |||||||
Retained earnings |
10,077,917 | 9,454,861 | |||||||
Accumulated other comprehensive income (loss) |
(1,110,614 | ) | (1,038,545 | ) | |||||
| | | | | | | | | |
Total FMC-AG & Co. KGaA shareholders' equity |
12,125,597 | 11,957,913 | |||||||
Noncontrolling interests |
1,197,025 | 1,269,324 | |||||||
| | | | | | | | | |
Total equity |
13,322,622 | 13,227,237 | |||||||
| | | | | | | | | |
Total liabilities and equity |
34,189,853 | 32,934,735 | |||||||
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
46
FRESENIUS MEDICAL CARE AG & Co. KGaA
Consolidated statements of cash flows
(unaudited)
Consolidated statements of cash flows
in € THOUS
|
|
For the six months ended June 30, | |||||||
---|---|---|---|---|---|---|---|---|---|
|
Note | 2020 | 2019 | ||||||
Operating activities |
|||||||||
Net income |
777,285 | 642,395 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Depreciation, amortization and impairment loss |
10 | 810,967 | 749,377 | ||||||
Change in deferred taxes, net |
43,830 | 23,937 | |||||||
(Gain) loss from the sale of fixed assets, right-of-use assets, investments and divestitures |
(34,042 | ) | (21,268 | ) | |||||
Compensation expense related to share-based plans |
| 2,640 | |||||||
Income from equity method investees |
(24,314 | ) | (42,514 | ) | |||||
Interest expense, net |
196,159 | 222,203 | |||||||
Changes in assets and liabilities, net of amounts from businesses acquired: |
|||||||||
Trade accounts and other receivables |
(81,218 | ) | (208,302 | ) | |||||
Inventories |
(201,896 | ) | (154,967 | ) | |||||
Other current and non-current assets |
47,948 | (32,095 | ) | ||||||
Accounts receivable from related parties |
25,729 | 32,667 | |||||||
Accounts payable to related parties |
17,663 | 2,048 | |||||||
Accounts payable, provisions and other current and non-current liabilities |
2e | 1,391,949 | (108,790 | ) | |||||
Income tax payable |
120,380 | 232,680 | |||||||
Cash inflow (outflow) from hedging |
| (12,628 | ) | ||||||
Received dividends from investments in equity method investees |
87,120 | 42,230 | |||||||
Paid interest |
(204,885 | ) | (230,576 | ) | |||||
Received interest |
19,938 | 21,975 | |||||||
Paid income taxes |
(89,295 | ) | (233,210 | ) | |||||
| | | | | | | | | |
Net cash provided by (used in) operating activities |
2,903,318 | 927,802 | |||||||
| | | | | | | | | |
Investing activities |
|||||||||
Purchases of property, plant and equipment |
(500,168 | ) | (497,059 | ) | |||||
Proceeds from sale of property, plant and equipment |
3,543 | 4,524 | |||||||
Acquisitions and investments, net of cash acquired, and purchases of intangible assets |
(107,254 | ) | (1,922,745 | ) | |||||
Proceeds from divestitures |
10,955 | 22,972 | |||||||
| | | | | | | | | |
Net cash provided by (used in) investing activities |
(592,924 | ) | (2,392,308 | ) | |||||
| | | | | | | | | |
Financing activities |
|||||||||
Proceeds from short-term debt |
190,277 | 285,302 | |||||||
Repayments of short-term debt |
(467,046 | ) | (134,216 | ) | |||||
Proceeds from short-term debt from related parties |
498,811 | | |||||||
Repayments of short-term debt from related parties |
(517,600 | ) | (112,200 | ) | |||||
Proceeds from long-term debt |
1,264,223 | 1,273,770 | |||||||
Repayments of long-term debt |
(1,060,896 | ) | (292,437 | ) | |||||
Repayments of lease liabilities |
(347,552 | ) | (319,927 | ) | |||||
Repayments of lease liabilities from related parties |
(9,939 | ) | (8,232 | ) | |||||
Increase (decrease) of accounts receivable facility |
(387,460 | ) | 265,538 | ||||||
Proceeds from exercise of stock options |
9,379 | 10,586 | |||||||
Purchase of treasury stock |
(365,988 | ) | (298,979 | ) | |||||
Dividends paid |
| (354,636 | ) | ||||||
Distributions to noncontrolling interests |
(221,514 | ) | (123,235 | ) | |||||
Contributions from noncontrolling interests |
13,005 | 31,256 | |||||||
| | | | | | | | | |
Net cash provided by (used in) financing activities |
(1,402,300 | ) | 222,590 | ||||||
| | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents |
(26,384 | ) | 18,386 | ||||||
Cash and cash equivalents: |
|||||||||
Net increase (decrease) in cash and cash equivalents |
881,710 | (1,223,530 | ) | ||||||
Cash and cash equivalents at beginning of period |
1,007,723 | 2,145,632 | |||||||
| | | | | | | | | |
Cash and cash equivalents at end of period |
1,889,433 | 922,102 | |||||||
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
47
FRESENIUS MEDICAL CARE AG & Co. KGaA
Consolidated statements of shareholders' equity
For the six months ended June 30, 2020 and 2019 (unaudited)
Consolidated statements of shareholders' equity
in € THOUS, except share data
|
|
|
|
|
|
|
|
Accumulated
other comprehensive income (loss) |
|
|
|
|||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Ordinary shares | Treasury stock |
|
|
Total FMC-
AG & Co. KGaA shareholders' equity |
|
|
||||||||||||||||||||||||||||||||||
|
Note |
Number of
shares |
No par
value |
Number of
shares |
Amount |
Additional
paid in capital |
Retained
earnings |
Foreign
currency translation |
Cash flow
hedges |
Pensions |
Fair
value changes |
Noncontrolling
interests |
Total
equity |
|||||||||||||||||||||||||||||
Balance at December 31, 2018 |
307,878,652 | 307,879 | (999,951 | ) | (50,993 | ) | 3,873,345 | 8,831,930 | (911,473 | ) | (1,528 | ) | (290,749 | ) | | 11,758,411 | 1,143,547 | 12,901,958 | ||||||||||||||||||||||||
Adjustment due to initial application of IFRS 16 |
| | | | | (120,809 | ) | | | | | (120,809 | ) | (15,526 | ) | (136,335 | ) | |||||||||||||||||||||||||
Adjusted balance at December 31, 2018 |
307,878,652 | 307,879 | (999,951 | ) | (50,993 | ) | 3,873,345 | 8,711,121 | (911,473 | ) | (1,528 | ) | (290,749 | ) | | 11,637,602 | 1,128,021 | 12,765,623 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from exercise of options and related tax effects |
228,418 | 228 | | | 11,407 | | | | | | 11,635 | | 11,635 | |||||||||||||||||||||||||||||
Compensation expense related to stock options |
| | | | 2,640 | | | | | | 2,640 | | 2,640 | |||||||||||||||||||||||||||||
Purchase of treasury stock |
2d | | | (4,275,444 | ) | (303,666 | ) | | | | | | | (303,666 | ) | | (303,666 | ) | ||||||||||||||||||||||||
Withdrawal of treasury stock |
2d | (3,770,772 | ) | (3,771 | ) | 3,770,772 | 269,796 | (266,025 | ) | | | | | | | | | |||||||||||||||||||||||||
Dividends paid |
| | | | | (354,636 | ) | | | | | (354,636 | ) | | (354,636 | ) | ||||||||||||||||||||||||||
Purchase/ sale of noncontrolling interests |
| | | | (6,553 | ) | | | | | | (6,553 | ) | 36,172 | 29,619 | |||||||||||||||||||||||||||
Contributions from/ to noncontrolling interests |
| | | | | | | | | | | (95,369 | ) | (95,369 | ) | |||||||||||||||||||||||||||
Noncontrolling interests subject to put provisions |
9 | | | | | | (17,902 | ) | | | | | (17,902 | ) | | (17,902 | ) | |||||||||||||||||||||||||
Net Income |
| | | | | 524,529 | | | | | 524,529 | 117,866 | 642,395 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) related to: |
||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation |
| | | | | | 125,613 | 68 | (959 | ) | | 124,722 | 5,708 | 130,430 | ||||||||||||||||||||||||||||
Cash flow hedges, net of related tax effects |
| | | | | | | (10,318 | ) | | | (10,318 | ) | | (10,318 | ) | ||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Comprehensive income |
| | | | | | | | | | 638,933 | 123,574 | 762,507 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at June 30, 2019 |
304,336,298 | 304,336 | (1,504,623 | ) | (84,863 | ) | 3,614,814 | 8,863,112 | (785,860 | ) | (11,778 | ) | (291,708 | ) | | 11,608,053 | 1,192,398 | 12,800,451 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2019 |
304,436,876 | 304,437 | (6,107,629 | ) | (370,502 | ) | 3,607,662 | 9,454,861 | (664,987 | ) | (10,460 | ) | (363,098 | ) | | 11,957,913 | 1,269,324 | 13,227,237 | ||||||||||||||||||||||||
Proceeds from exercise of options and related tax effects |
171,114 | 171 | | | 10,171 | | | | | | 10,342 | | 10,342 | |||||||||||||||||||||||||||||
Purchase of treasury stock |
2d | | | (5,687,473 | ) | (365,988 | ) | | | | | | | (365,988 | ) | | (365,988 | ) | ||||||||||||||||||||||||
Purchase/ sale of noncontrolling interests |
| | | | (27,657 | ) | | | | | | (27,657 | ) | (82,859 | ) | (110,516 | ) | |||||||||||||||||||||||||
Contributions from/ to noncontrolling interests |
| | | | | | | | | | (134,058 | ) | (134,058 | ) | ||||||||||||||||||||||||||||
Noncontrolling interests subject to put provisions |
9 | | | | | | (10,635 | ) | | | | | (10,635 | ) | | (10,635 | ) | |||||||||||||||||||||||||
Net Income |
| | | | | 633,691 | | | | | 633,691 | 143,594 | 777,285 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) related to: |
||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation |
| | | | | | (173,465 | ) | (54 | ) | (207 | ) | 103 | (173,623 | ) | 1,024 | (172,599 | ) | ||||||||||||||||||||||||
Cash flow hedges, net of related tax effects |
| | | | | | | 4,873 | | | 4,873 | | 4,873 | |||||||||||||||||||||||||||||
Pensions, net of related tax effects |
| | | | | | | | 2,537 | | 2,537 | | 2,537 | |||||||||||||||||||||||||||||
Fair value changes |
| | | | | | | | | 94,144 | 94,144 | | 94,144 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Comprehensive income |
| | | | | | | | | | 561,622 | 144,618 | 706,240 | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at June 30, 2020 |
304,607,990 | 304,608 | (11,795,102 | ) | (736,490 | ) | 3,590,176 | 10,077,917 | (838,452 | ) | (5,641 | ) | (360,768 | ) | 94,247 | 12,125,597 | 1,197,025 | 13,322,622 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to unaudited consolidated financial statements.
48
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements
(unaudited)
(in THOUS, except share and per share
data)
1. The Company and basis of presentation
The Company
Fresenius Medical Care AG & Co. KGaA ("FMC-AG & Co. KGaA" or the "Company"), a German partnership limited by shares (Kommanditgesellschaft auf Aktien) registered in the commercial registry of Hof an der Saale under HRB 4019, with its business address at Else-Kröner-Str. 1, 61352 Bad Homburg v. d. Höhe, is the world's largest kidney dialysis company, based on publicly reported revenue and number of patients treated. The Company provides dialysis care and related dialysis care services to persons who suffer from end-stage renal disease ("ESRD"), as well as other health care services. The Company also develops, manufactures and distributes a wide variety of health care products, which includes dialysis and non-dialysis products. The Company's dialysis products include hemodialysis machines, peritoneal cyclers, dialyzers, peritoneal solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals and systems for water treatment. The Company's non-dialysis products include acute cardiopulmonary and apheresis products. The Company supplies dialysis clinics it owns, operates or manages with a broad range of products and also sells dialysis products to other dialysis service providers. The Company describes certain of its other health care services as "Care Coordination." Care Coordination currently includes, but is not limited to, value and risk-based arrangements, pharmacy services, vascular, cardiovascular and endovascular specialty services as well as ambulatory surgery center services, physician nephrology and cardiology services, urgent care services and ambulant treatment services. All of these Care Coordination services together with dialysis care and related services represent the Company's health care services.
In these unaudited consolidated financial statements, "FMC-AG & Co. KGaA," or the "Company" refers to the Company or the Company and its subsidiaries on a consolidated basis, as the context requires. "Fresenius SE" and "Fresenius SE & Co. KGaA" refer to Fresenius SE & Co. KGaA. "Management AG" and the "General Partner" refer to Fresenius Medical Care Management AG which is FMC-AG & Co. KGaA's general partner and is wholly owned by Fresenius SE. "Management Board" refers to the members of the management board of Management AG and, except as otherwise specified, "Supervisory Board" refers to the supervisory board of FMC-AG & Co. KGaA. The term "North America Segment" refers to the North America operating segment, the term "EMEA Segment" refers to the Europe, Middle East and Africa operating segment, the term "Asia-Pacific Segment" refers to the Asia-Pacific operating segment, and the term "Latin America Segment" refers to the Latin America operating segment. For further discussion of the Company's operating segments, see note 10.
Basis of presentation
The consolidated financial statements and other financial information included in the Company's quarterly reports on Form 6-K and its Annual Report on Form 20-F are prepared solely in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), using the euro as the Company's reporting currency. The quarterly financial report is prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, and contains condensed financial statements, in that it does not include all of the notes that would be required in a complete set of financial statements, but rather selected explanatory notes. However, the primary financial statements are presented in the format consistent with the consolidated financial statements as presented in the Company's Annual Report on Form 20-F for the year ended December 31, 2019 (the "2019 Form 20-F") in accordance with IAS 1, Presentation of Financial Statements.
The consolidated financial statements at June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 contained in this report are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company's 2019 Form 20-F. The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues
49
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
1. The Company and basis of presentation (Continued)
and expenses during the reporting period. Actual results could differ from those estimates. Such financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are of a normal recurring nature.
Starting on July 1, 2018, the Company's subsidiaries in Argentina applied IAS 29, Financial Reporting in Hyperinflationary Economies, due to the inflation in Argentina. Pursuant to IAS 29, the Company recorded a loss on its net monetary position of €7,556 for the six months ended June 30, 2020. The Company calculated the loss with the use of the Consumer Price Index (Índice de precios al consumidor) as published by the Argentine Statistics and Census Institute for the six months ended June 30, 2020, which lists the level at 322.0 index points, a 14% increase since January 1, 2020.
In the consolidated statements of income, "Selling, general and administrative" expense in the amount of €7,363 for the three months ended June 30, 2019 and €2,347 for the six months ended June 30, 2019 have been reclassified to "Research and development" expense to conform to the current year's presentation.
In the consolidated statements of cash flows, a decrease in receivables from equity-method investees in the amount of €14,372 for the six months ended June 30, 2019 has been reclassified from line item "Trade accounts and other receivables" to line item "Accounts receivable from related parties" to conform to the current year's presentation.
In the consolidated balance sheets, "Non-current provisions and other non-current liabilities" in the amount of €51,831 as of December 31, 2019 have been reclassified to line item "current provisions and other current liabilities" to conform to the current year's presentation.
The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations for the year ending December 31, 2020.
At July 30, 2020, the Management Board authorized the consolidated financial statements for issue.
New accounting pronouncements
Recently implemented accounting pronouncements
The Company has prepared its consolidated financial statements at and for the six months ended June 30, 2020 in conformity with IFRS that must be applied for the interim periods starting on or after January 1, 2020. In the six months ended June 30, 2020, there were no recently implemented accounting pronouncements that had a material effect on the Company's consolidated financial statements.
Recent accounting pronouncements not yet adopted
The IASB issued the following new standards which are relevant for the Company:
IFRS 17, Insurance Contracts
In May 2017, the IASB issued IFRS 17, Insurance Contracts. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure related to the issuance of insurance contracts. IFRS 17 replaces IFRS 4, Insurance Contracts, which was brought in as an interim standard in 2004. IFRS 4 permitted the use of national accounting standards for the accounting of insurance contracts under IFRS. As a result of the varied application for insurance contracts there was a lack of comparability among peer groups. IFRS 17 eliminates this diversity in practice by requiring all insurance contracts to be accounted for using current values. The frequent updates to the insurance values are expected to provide more useful information to users of financial statements. On June 25, 2020, the IASB issued amendments to IFRS 17, which among others, defer the effective date to fiscal years beginning on or after January 1, 2023. Earlier adoption is permitted for entities that have also adopted IFRS 9, Financial Instruments and IFRS 15, Revenue from Contracts with Customers. The Company is evaluating the impact of IFRS 17 on the consolidated financial statements.
50
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
1. The Company and basis of presentation (Continued)
Amendments to IAS 1, Classification of Liabilities as Current and Non-current
In January 2020, the IASB issued Amendments to IAS 1, Classification of Liabilities as Current and Non-current. The amendments clarify under which circumstances debt and other liabilities with an uncertain settlement date should be classified as current or non-current. Among others, the amendments state that liabilities shall be classified depending on rights that exist at the end of the reporting period and define under which conditions liabilities might be settled by cash, other economic resources or equity.
On July 15th, the IASB deferred the effective date by one year to provide companies with more time to implement any classification changes resulting from the amendments. The Amendments to IAS 1 are now effective for annual reporting periods beginning on or after January 1, 2023. Earlier adoption is permitted. The Company is currently evaluating the impact of the amendments to IAS 1 on the consolidated financial statements.
In the Company's view, no other pronouncements issued by the IASB are expected to have a material impact on the consolidated financial statements.
2. Notes to the consolidated statements of income
a) Revenue
The Company has recognized the following revenue in the consolidated statement of income for the three and six months ended June 30, 2020 and 2019:
Revenue
in € THOUS
|
For the three months ended June 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2020 | 2019 | |||||||||||||||||
|
Revenue from
contracts with customers |
Other
revenue |
Total |
Revenue from
contracts with customers |
Other
revenue |
Total | |||||||||||||
Health care services |
|||||||||||||||||||
Dialysis services |
3,223,998 | | 3,223,998 | 3,120,267 | | 3,120,267 | |||||||||||||
Care Coordination |
310,971 | 78,900 | 389,871 | 278,937 | 55,993 | 334,930 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
3,534,969 | 78,900 | 3,613,869 | 3,399,204 | 55,993 | 3,455,197 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Health care products |
|||||||||||||||||||
Dialysis products |
891,599 | 28,490 | 920,089 | 839,369 | 33,097 | 872,466 | |||||||||||||
Non-dialysis products |
23,387 | | 23,387 | 17,369 | | 17,369 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
914,986 | 28,490 | 943,476 | 856,738 | 33,097 | 889,835 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total |
4,449,955 | 107,390 | 4,557,345 | 4,255,942 | 89,090 | 4,345,032 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
51
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
|
For the six months ended June 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2020 | 2019 | |||||||||||||||||
|
Revenue from
contracts with customers |
Other
revenue |
Total |
Revenue from
contracts with customers |
Other
revenue |
Total | |||||||||||||
Health care services |
|||||||||||||||||||
Dialysis services |
6,422,250 | | 6,422,250 | 6,077,648 | | 6,077,648 | |||||||||||||
Care Coordination |
628,291 | 157,991 | 786,282 | 578,481 | 116,376 | 694,857 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
7,050,541 | 157,991 | 7,208,532 | 6,656,129 | 116,376 | 6,772,505 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Health care products |
|||||||||||||||||||
Dialysis products |
1,733,462 | 51,261 | 1,784,723 | 1,602,254 | 66,887 | 1,669,141 | |||||||||||||
Non-dialysis products |
51,886 | | 51,886 | 35,943 | | 35,943 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
|
1,785,348 | 51,261 | 1,836,609 | 1,638,197 | 66,887 | 1,705,084 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
Total |
8,835,889 | 209,252 | 9,045,141 | 8,294,326 | 183,263 | 8,477,589 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
b) Research and development expenses
Research and development expenses of €96,423 for the six months ended June 30, 2020 (for the six months ended June 30, 2019: €76,981) included research and non-capitalizable development costs as well as depreciation and amortization expenses related to capitalized development costs of €2,531 (for the six months ended June 30, 2019: €369).
c) Interest income
In 2014, the Company issued equity-neutral convertible bonds (the "Convertible Bonds"). From November 2017 until January 2020 when the Convertible Bonds were repaid, bond holders could exercise their conversion rights embedded in the bonds at certain dates ("Embedded Derivatives"). To fully offset the economic exposure from the conversion feature, the Company purchased call options on its shares ("Share Options").
During the six months ended June 30, 2019, the fair value of the Share Options increased and, as such, the increase is shown as interest income. However, the increase in the fair value of the Share Options for the six-month period ended June 30, 2019 was lower than for the three months ended March 31, 2019, which leads to the presentation of negative interest income for the three months ended June 30, 2019.
52
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
d) Earnings per share
The following table contains reconciliations of the numerators and denominators of the basic and fully diluted earnings per share computations for 2020 and 2019:
Reconciliation of basic and diluted earnings per share
in € THOUS, except share and per share data
Share buy-back program
In 2020, the Company continued to utilize the authorization granted by the Company's Annual General Meeting on May 12, 2016 to conduct a share buy-back program. The current share buy-back program, announced on June 14, 2019 allowed for repurchase of a maximum of 12,000,000 shares at a total purchase price, excluding ancillary transaction costs, of up to €660,000 between June 17, 2019 and June 17, 2020. On April 1, 2020, the Company concluded the current buy-back program. The prior buy-back program expired on May 10, 2019 and the repurchased shares were retired. The following tabular disclosure provides the
53
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
number of shares acquired in the context of the share buy-back programs as well as the retired treasury stock:
Treasury Stock
Period
|
Average price
per share |
Total number of shares
purchased and retired as part of publicly announced plans or programs |
Total value of
shares(1) |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
|
in €
|
|
in € THOUS
|
|||||||
December 31, 2018 |
51.00 | 999,951 | 50,993 | |||||||
| | | | | | | | | | |
Purchase of Treasury Stock |
||||||||||
March 2019 |
69.86 | 1,629,240 | 113,816 | |||||||
April 2019 |
72.83 | 1,993,974 | 145,214 | |||||||
May 2019 |
72.97 | 147,558 | 10,766 | |||||||
| | | | | | | | | | |
Repurchased Treasury Stock |
71.55 | 3,770,772 | 269,796 | |||||||
| | | | | | | | | | |
Retirement of repurchased Treasury Stock |
||||||||||
June 2019 |
71.55 | 3,770,772 | 269,796 | |||||||
| | | | | | | | | | |
Purchase of Treasury Stock |
||||||||||
June 2019 |
67.11 | 504,672 | 33,870 | |||||||
July 2019 |
66.77 | 1,029,655 | 68,748 | |||||||
August 2019 |
57.53 | 835,208 | 48,050 | |||||||
September 2019 |
59.67 | 627,466 | 37,445 | |||||||
October 2019 |
57.85 | 692,910 | 40,084 | |||||||
November 2019 |
64.78 | 852,859 | 55,245 | |||||||
December 2019 |
63.85 | 564,908 | 36,067 | |||||||
| | | | | | | | | | |
Repurchased Treasury Stock |
62.55 | 5,107,678 | 319,509 | |||||||
| | | | | | | | | | |
December 31, 2019 |
60.66 | 6,107,629 | 370,502 | |||||||
| | | | | | | | | | |
Purchase of Treasury Stock |
||||||||||
January 2020 |
84.37 | 124,398 | 10,495 | |||||||
February 2020(2) |
249.10 | 25,319 | 6,307 | |||||||
March 2020 |
63.05 | 4,842,943 | 305,362 | |||||||
April 2020 |
63.07 | 694,813 | 43,824 | |||||||
| | | | | | | | | | |
Repurchased Treasury Stock |
64.35 | 5,687,473 | 365,988 | |||||||
| | | | | | | | | | |
TOTAL |
62.44 | 11,795,102 | 736,490 | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
As of June 30, 2020, the Company holds 11,795,102 treasury shares. These shares will be used solely to reduce the registered share capital of the Company by cancellation of the acquired shares.
54
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
The Company and its patient population have been impacted by the severe acute respiratory syndrome coronavirus 2 ("COVID-19"). The Company provides life-sustaining dialysis treatments and other critical healthcare services and products to patients. Its patients need regular and frequent dialysis treatments, or else they face significant health consequences that would result in either hospitalization or death. To be able to continue care for its patients, the Company determined that it needed to implement a number of measures, both operational and financial, to maintain an adequate workforce, protect its patients and employees through expanded personal protective equipment protocols and to develop surge capacity for patients suspected or confirmed to have COVID-19. Additionally, the Company experienced a loss of revenue due to the pandemic in certain parts of its business, offset by increased demand for its services and products in other parts. Various governments in regions in which the Company operates have provided economic assistance programs to address the consequences of the pandemic on companies and support healthcare providers and patients. The Company has recorded €181,525 of related reimbursement payments and funding reflecting the specific terms and regulations set forth in the local laws and regulations, primarily directly against the respective cost of revenue line item, and the rest against the selling, general and administrative expense line item in the statement of profit and loss in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. In addition to the costs incurred which are eligible for the discussed government funding in various countries, the Company was affected by impacts that COVID-19 had on the global economy and financial markets, e.g. impacting valuations of certain of the Company's investments (see note 9), as well as effects related to lockdowns. At the same time the Company incurred lower costs in certain areas, for example for incentive plans and travel. Overall, including COVID-19 reimbursements, the Company concluded that COVID-19 resulted in an immaterial impact to net income attributable to shareholders of FMC-AG & Co. KGaA in the first half of 2020.
On March 27, 2020, the U.S. administration signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") which provides relief funds to hospitals and other healthcare providers in connection with the impact of the on-going COVID-19 pandemic. The Company received U.S. federal relief funding under the CARES Act in the amount of $276,700 (€251,078 as of June 30, 2020). The part of this funding that is not yet offset with qualifying costs incurred in relation to COVID-19 for the three-and-six months ended June 30, 2020 is recorded as a liability on the Company's consolidated balance sheet within current provisions and other current liabilities as of June 30, 2020 and will be offset against all qualifying costs that are incurred in the second half of 2020.
All funds received from grants comply with the terms and conditions associated with the funding received. All funding received under the CARES Act in the U.S. is to be applied solely to the Company's U.S. operations. In accordance with the conditions of the funding received under the grants, the Company is obliged and committed to fulfilling all the requirements of the grant funding arrangements in the respective jurisdictions in which funding was received. The Company has determined that there is reasonable assurance that it will continue to be entitled to the amounts received and comply with the requirements related to the grants.
Additionally, the Company received advance payments under the CMS Accelerated and Advance Payment program which are recorded as a contract liability upon receipt and recognized as revenue when the respective services are provided. The Company recorded a contract liability within current provisions and other current liabilities in the amount of €930,700 as of June 30, 2020.
The growth of the business through acquisitions has created a significant amount of intangible assets, including goodwill, trade names, management contracts, non-compete agreements, technology and customer relationships as well as licenses and distribution agreements. In addition, the Company
55
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
recognizes internally developed intangible assets related to research and development and software development projects. In accordance with IAS 36, the Company performs an impairment test of goodwill and non-amortizable intangible assets at least once a year for each cash-generating unit ("CGU") or more frequently if the Company becomes aware of events that occur or if circumstances change that would indicate the carrying value may not be recoverable.
To perform the impairment test of goodwill, the Company identified its groups of CGUs and determined their carrying value by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those CGUs. CGUs reflect the level on which goodwill is monitored for internal management purposes.
The North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment have been identified as CGUs. For the purpose of goodwill impairment testing, all corporate assets and liabilities are allocated to these CGUs. The Company compares the recoverable amount of each CGU to the CGU's carrying amount. The recoverable amount (value in use) of a CGU is determined using a discounted cash flow approach based upon the cash flow expected to be generated by the CGU. When the value in use of the CGU is less than its carrying amount, the difference is at first recorded as an impairment of the carrying amount of the goodwill.
The value in use of each CGU is determined using estimated future cash flows for the unit discounted by a pre-tax discount rate ("WACC") specific to that CGU. The Company's WACC consists of a basic rate adjusted by a weighted average country risk rate and, if appropriate, by a factor to reflect higher risks associated with the cash flows from recent material acquisitions within each CGU, until they are appropriately integrated. Estimating the future cash flows involves significant assumptions, especially regarding future reimbursement rates and sales prices, number of treatments, sales volumes and costs. The key assumptions represent management's assessment of future trends and have been based on historical data from both external and internal sources. In determining discounted cash flows, the Company utilizes for every CGU its three-year budget, projections for years four to ten and a representative growth rate for all remaining years. Projections for up to ten years are possible due to the non-discretionary nature of the health care services the Company provides, the need for health care products utilized to provide such services and the availability of government reimbursement for a substantial portion of its services.
The Company considered adverse changes in the Latin America Segment's economic environment, in part exacerbated by COVID-19, specifically in relation to a negative impact from country-specific risk rates increasing the WACC in the CGU, as a trigger for an impairment test of the Latin America Segment. The Company did not identify any indicators of impairment in any CGU not included within this impairment test of goodwill. At June 30, 2020, the recoverable amount of the Latin America Segment exceeds the carrying amount by €23,096. As such, the Company did not recognize an impairment in the Latin America Segment as at June 30, 2020. Any adverse developments in future periods would likely lead to impairment charges on this CGU. At June 30, 2020, the carrying amount of goodwill and non-amortizable intangible assets of the Latin America Segment amounted to €184,277 (€195,606 at December 31, 2019). The following table shows the key assumptions and amounts by which the key assumptions would need to change that the recoverable amount equals the carrying amount:
Key assumptions
in % |
Sensitivity analysis
Change in percentage points |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Latin America |
|
Latin
America |
||||||||||||
|
2020 | 2019 |
|
2020 | 2019 | ||||||||||
Pre-tax WACC |
11.90 - 25.57 | 10.45 - 20.02 |
Pre-tax WACC |
0.22 | 1.87 | ||||||||||
After-tax WACC |
8.83 - 22.50 | 8.06 - 17.63 |
After-tax WACC |
0.15 | 1.24 |
56
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
2. Notes to the consolidated statements of income (Continued)
For further information related to significant assumptions and sensitivities related to impairment, see notes 1 g) and 2 a) included in our 2019 Form 20-F.
3. Related party transactions
Fresenius SE is the Company's largest shareholder and owns 32.23% of the Company's outstanding shares, excluding treasury shares held by the Company, at June 30, 2020. The Company has entered into certain arrangements for services and products with Fresenius SE or its subsidiaries and with certain of the Company's equity method investees as described in item a) below. The arrangements for leases with Fresenius SE or its subsidiaries are described in item b) below. The Company's terms related to the receivables or payables for these services, leases and products are generally consistent with the normal terms of the Company's ordinary course of business transactions with unrelated parties and the Company believes that these arrangements reflect fair market terms. The Company utilizes various methods to verify the commercial reasonableness of its related party arrangements. Financing arrangements as described in item c) below have agreed upon terms which are determined at the time such financing transactions occur and reflect market rates at the time of the transaction. The relationship between the Company and its key management personnel who are considered to be related parties is described in item d) below. Our related party transactions are settled through Fresenius SE's cash management system where appropriate.
The Company is party to service agreements with Fresenius SE and certain of its affiliates (collectively the "Fresenius SE Companies") to receive services, including, but not limited to: administrative services, management information services, employee benefit administration, insurance, information technology services, tax services and treasury management services. The Company also provides central purchasing services to the Fresenius SE Companies. These related party agreements generally have a duration of 1 to 5 years and are renegotiated on an as needed basis when the agreement comes due. The Company provides administrative services to one of its equity method investees.
The Company sells products to the Fresenius SE Companies and purchases products from the Fresenius SE Companies and equity method investees. In addition, Fresenius Medical Care Holdings, Inc. ("FMCH") purchases heparin supplied by Fresenius Kabi USA, Inc. ("Kabi USA"), through an independent group purchasing organization ("GPO"). Kabi USA is an indirect, wholly-owned subsidiary of Fresenius SE. The Company has no direct supply agreement with Kabi USA and does not submit purchase orders directly to Kabi USA. FMCH acquires heparin from Kabi USA, through the GPO contract, which was negotiated by the GPO at arm's length on behalf of all members of the GPO.
In December 2010, the Company and Galenica Ltd. (now known as Vifor Pharma Ltd.) formed the renal pharmaceutical company Vifor Fresenius Medical Care Renal Pharma Ltd., an equity method investee of which the Company owns 45%. The Company has entered into exclusive supply agreements to purchase certain pharmaceuticals from, as well as certain exclusive distribution agreements with, Vifor Fresenius Medical Care Renal Pharma Ltd.
Under the Centers for Medicare and Medicaid Services' ("CMS") Comprehensive ESRD Care Model, the Company and participating physicians formed entities known as ESCOs as part of a payment and care delivery model that seeks to deliver better health outcomes for Medicare ESRD patients while lowering CMS's costs. The Company has entered into participation/service agreements with these ESCOs, which are accounted for as equity method investees.
Below is a summary, including the Company's receivables from and payables to the indicated parties, resulting from the above described transactions with related parties.
57
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
3. Related party transactions (Continued)
Service agreements and products with related parties
in € THOUS
|
For the six months
ended June 30, 2020 |
For the six months
ended June 30, 2019 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sales of
goods and services |
Purchases of
goods and services |
Sales of
goods and services |
Purchases of
goods and services |
Accounts
receivable |
Accounts
payable |
Accounts
receivable |
Accounts
payable |
|||||||||||||||||
Service agreements(1) |
|||||||||||||||||||||||||
Fresenius SE |
155 | 13,958 | 77 | 11,972 | 40 | 5,339 | 35 | 360 | |||||||||||||||||
Fresenius SE affiliates |
2,021 | 53,703 | 1,651 | 47,651 | 884 | 5,124 | 2,003 | 6,416 | |||||||||||||||||
Equity method investees |
2,778 | | (12,946 | ) | | 67,653 | | 68,300 | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total |
4,954 | 67,661 | (11,218 | ) | 59,623 | 68,577 | 10,463 | 70,338 | 6,776 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Products |
|||||||||||||||||||||||||
Fresenius SE affiliates |
21,918 | 20,139 | 21,655 | 17,559 | 15,754 | 4,267 | 16,803 | 3,405 | |||||||||||||||||
Equity method investees |
| 243,148 | | 224,618 | | 73,143 | | 36,262 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total |
21,918 | 263,287 | 21,655 | 242,177 | 15,754 | 77,410 | 16,803 | 39,667 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
In addition to the above-mentioned product and service agreements, the Company is a party to real estate lease agreements with the Fresenius SE Companies, which mainly include leases for the Company's corporate headquarters in Bad Homburg, Germany and production sites in Schweinfurt and St. Wendel, Germany. The leases have maturities up to the end of 2029.
Below is a summary resulting from the above described lease agreements with related parties.
Lease agreements with related parties
in € THOUS
|
For the six months ended
June 30, 2020 |
For the six months ended
June 30, 2019 |
June 30, 2020 |
December 31,
2019 |
|||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Depreciation |
Interest
expense |
Lease
expense(1) |
Depreciation |
Interest
expense |
Lease
expense(1) |
Right-of-
use asset |
Lease
liability |
Right-of-
use asset |
Lease
liability |
|||||||||||||||||||||
Fresenius SE |
3,995 | 375 | 398 | 2,524 | 250 | 1,955 | 62,447 | 62,837 | 30,336 | 30,820 | |||||||||||||||||||||
Fresenius SE affiliates |
6,644 | 657 | 175 | 6,299 | 715 | 275 | 86,703 | 87,750 | 91,879 | 92,126 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total |
10,639 | 1,032 | 573 | 8,823 | 965 | 2,230 | 149,150 | 150,587 | 122,215 | 122,946 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Company receives short-term financing from and provides short-term financing to Fresenius SE. The Company also utilizes Fresenius SE's cash management system for the settlement of certain intercompany receivables and payables with its subsidiaries and other related parties. As of June 30, 2020 and December 31, 2019, the Company had accounts receivable from Fresenius SE related to short-term financing in the amount of €48,818 and €71,078, respectively. As of June 30, 2020, the Company did not have accounts payable to Fresenius SE related to short-term financing. As of December 31, 2019, the Company had accounts payable to Fresenius SE related to short-term financing in the amount of €38,050.
58
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
3. Related party transactions (Continued)
The interest rates for these cash management arrangements are set on a daily basis and are based on the then-prevailing overnight reference rate, with a floor of zero, for the respective currencies.
On August 19, 2009, the Company borrowed €1,500 from the General Partner on an unsecured basis at 1.335%. The loan repayment has been extended periodically and is currently due August 21, 2020 with an interest rate of 0.930%. On November 28, 2013, the Company borrowed an additional €1,500 with an interest rate of 1.875% from the General Partner. The loan repayment has been extended periodically and is currently due on November 23, 2020 with an interest rate of 0.930%.
At June 30, 2020 and December 31, 2019, a subsidiary of Fresenius SE held unsecured bonds issued by the Company in the amount of €1,000 and €1,000, respectively. These bonds were issued in 2011 with a coupon of 5.25% and interest payable semiannually until maturity in 2021.
At June 30, 2020, the Company lent to Fresenius SE €3,400 on an unsecured basis at an interest rate of 0.930%. This loan was repaid on July 1, 2020. At December 31, 2019, the Company borrowed from Fresenius SE in the amount of €18,865 on an unsecured basis at an interest rate of 0.930%, respectively. For further information on this loan agreement, see note 5.
Due to the Company's legal form of a German partnership limited by shares, the General Partner holds a key management position within the Company. In addition, as key management personnel, members of the Management Board and the Supervisory Board, as well as their close relatives, are considered related parties.
The Company's Articles of Association provide that the General Partner shall be reimbursed for any and all expenses in connection with management of the Company's business, including remuneration of the members of the General Partner's supervisory board and the members of the Management Board. The aggregate amount reimbursed to the General Partner was €17,299 and €13,029 for its management services during the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, the Company had accounts receivable from the General Partner in the amount of €65 and €977, respectively. As of June 30, 2020 and December 31, 2019, the Company had accounts payable to the General Partner in the amount of €47,436 and €34,170, respectively.
4. Inventories
At June 30, 2020 and December 31, 2019, inventories consisted of the following:
Inventories
in € THOUS
|
June 30,
2020 |
December 31,
2019 |
|||||
---|---|---|---|---|---|---|---|
Finished goods |
1,054,637 | 940,407 | |||||
Health care supplies |
424,616 | 399,585 | |||||
Raw materials and purchased components |
240,789 | 227,654 | |||||
Work in process |
120,813 | 95,632 | |||||
| | | | | | | |
Inventories |
1,840,855 | 1,663,278 | |||||
| | | | | | | |
| | | | | | | |
| | | | | | | |
59
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
5. Short-term debt and short-term debt from related parties
At June 30, 2020 and December 31, 2019, short-term debt and short-term debt from related parties consisted of the following:
Short-term debt and short-term debt from related parties
in € THOUS
|
June 30,
2020 |
December 31,
2019 |
|||||
---|---|---|---|---|---|---|---|
Commercial paper program |
838,856 | 999,732 | |||||
Borrowings under lines of credit |
34,379 | 143,875 | |||||
Other |
2,396 | 6,381 | |||||
| | | | | | | |
Short-term debt |
875,631 | 1,149,988 | |||||
Short-term debt from related parties (see note 3 c) |
3,000 | 21,865 | |||||
| | | | | | | |
Short-term debt and short-term debt from related parties |
878,631 | 1,171,853 | |||||
| | | | | | | |
| | | | | | | |
| | | | | | | |
The Company and certain consolidated entities operate a multi-currency notional pooling cash management system. The Company met the conditions to offset balances within this cash pool for reporting purposes. At June 30, 2020 and December 31, 2019, cash and borrowings under lines of credit in the amount of €268,019 and €152,598 were offset under this cash management system.
Commercial paper program
The Company maintains a commercial paper program under which short-term notes of up to €1,000,000 can be issued. At June 30, 2020, the outstanding commercial paper amounted to €839,000 (December 31, 2019: €1,000,000).
Other
At June 30, 2020, the Company had €2,396 (December 31, 2019: €6,381) of other debt outstanding related to fixed payments outstanding for acquisitions.
Short-term debt from related parties
On July 31, 2019, the Company and one of its subsidiaries, as borrowers, and Fresenius SE, as lender, amended and restated an unsecured loan agreement to increase the aggregate amount from $400,000 to €600,000. The Company and one of its subsidiaries may request and receive one or more short-term advances until maturity on July 31, 2022. For further information on short-term debt from related parties, see note 3 c).
60
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
6. Long-term debt
As of June 30, 2020 and December 31, 2019, long-term debt consisted of the following:
Long-term debt
in € THOUS
|
June 30,
2020 |
December 31,
2019 |
|||||
---|---|---|---|---|---|---|---|
Amended 2012 Credit Agreement |
1,315,192 | 1,901,372 | |||||
Bonds |
6,219,222 | 4,966,619 | |||||
Convertible Bonds |
| 399,939 | |||||
Accounts Receivable Facility |
| 379,570 | |||||
Other |
252,239 | 258,057 | |||||
| | | | | | | |
Long-term debt |
7,786,653 | 7,905,557 | |||||
Less current portion |
(1,512,658 | ) | (1,447,239 | ) | |||
| | | | | | | |
Long-term debt, less current portion |
6,273,995 | 6,458,318 | |||||
| | | | | | | |
| | | | | | | |
| | | | | | | |
On May 29, 2020, the Company issued bonds in two tranches with an aggregate principal amount of €1,250,000 under the European Medium-Term Notes Program:
The proceeds were used for general corporate purposes and the refinancing of maturing liabilities.
Amended 2012 Credit Agreement
The following table shows the available and outstanding amounts under the Amended 2012 Credit Agreement at June 30, 2020 and December 31, 2019:
Amended 2012 Credit AgreementMaximum amount available and balance outstanding
in THOUS
|
Maximum amount available June 30, 2020 | Balance outstanding June 30, 2020(1) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revolving credit USD 2017 / 2022 |
$ | 900,000 | € | 803,715 | $ | | € | | |||||
Revolving credit EUR 2017 / 2022 |
€ | 600,000 | € | 600,000 | € | | € | | |||||
USD term loan 2017 / 2022 |
$ | 1,170,000 | € | 1,044,829 | $ | 1,170,000 | € | 1,044,829 | |||||
EUR term loan 2017 / 2022 |
€ | 273,000 | € | 273,000 | € | 273,000 | € | 273,000 | |||||
EUR term loan 2017 / 2020(2) |
€ | | € | | € | | € | | |||||
| | | | | | | | | | | | | |
|
€ | 2,721,544 | € | 1,317,829 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
61
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
6. Long-term debt (Continued)
|
Maximum amount available December 31, 2019 | Balance outstanding December 31, 2019(1) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revolving credit USD 2017 / 2022 |
$ | 900,000 | € | 801,139 | $ | 138,700 | € | 123,464 | |||||
Revolving credit EUR 2017 / 2022 |
€ | 600,000 | € | 600,000 | € | | € | | |||||
USD term loan 2017 / 2022 |
$ | 1,230,000 | € | 1,094,891 | $ | 1,230,000 | € | 1,094,891 | |||||
EUR term loan 2017 / 2022 |
€ | 287,000 | € | 287,000 | € | 287,000 | € | 287,000 | |||||
EUR term loan 2017 / 2020 |
€ | 400,000 | € | 400,000 | € | 400,000 | € | 400,000 | |||||
| | | | | | | | | | | | | |
|
€ | 3,183,030 | € | 1,905,355 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Accounts Receivable Facility
The following table shows the available and outstanding amounts under the Accounts Receivable Facility at June 30, 2020 and at December 31, 2019:
Accounts Receivable FacilityMaximum amount available and balance outstanding
in THOUS
|
Maximum amount available December 31, 2019(1) | Balance outstanding December 31, 2019(2) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Accounts Receivable Facility |
$ | 900,000 | € | 801,139 | $ | 427,000 | € | 380,096 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The Company also had letters of credit outstanding under the Accounts Receivable Facility in the amount of $12,522 and $23,460 (€11,182 and €20,883) at June 30, 2020 and December 31, 2019, respectively. These letters of credit are not included above as part of the balance outstanding at June 30, 2020 and December 31, 2019; however, they reduce available borrowings under the Accounts Receivable Facility.
7. Capital management
As of June 30, 2020 and December 31, 2019 total equity in percent of total assets was 39.0% and 40.2%, respectively, and debt and lease liabilities in percent of total assets was 39.4% and 41.8%, respectively.
Further information on the Company's capital management is available in the 2019 Form 20-F.
The Company's financing structure and business model are reflected in the investment grade ratings. The Company is covered and rated investment grade by the three leading rating agencies, Moody's, Standard & Poor's and Fitch.
62
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
7. Capital management (Continued)
Rating(1)
|
Standard & Poor´s | Moody´s | Fitch | |||
---|---|---|---|---|---|---|
Corporate Credit Rating |
BBB | Baa3 | BBB | |||
Outlook |
stable | stable | stable |
8. Commitments and contingencies
Legal and regulatory matters
The Company is routinely involved in claims, lawsuits, regulatory and tax audits, investigations and other legal matters arising, for the most part, in the ordinary course of its business of providing health care services and products. Legal matters that the Company currently deems to be material or noteworthy are described below. The Company records its litigation reserves for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of loss can be reasonably estimated. For the other matters described below, the Company believes that the loss probability is remote and/or the loss or range of possible losses cannot be reasonably estimated at this time. The outcome of litigation and other legal matters is always difficult to predict accurately and outcomes that are not consistent with the Company's view of the merits can occur. The Company believes that it has valid defenses to the legal matters pending against it and is defending itself vigorously. Nevertheless, it is possible that the resolution of one or more of the legal matters currently pending or threatened could have a material adverse effect on its business, results of operations and financial condition.
Beginning in 2012, the Company received certain communications alleging conduct in countries outside the United States that might violate the Foreign Corrupt Practices Act or other anti-bribery laws. The Company conducted investigations with the assistance of outside counsel and, in a continuing dialogue, advised the Securities and Exchange Commission ("SEC") and the United States Department of Justice ("DOJ") about these investigations. The DOJ and the SEC also conducted their own investigations, in which the Company cooperated.
In the course of this dialogue, the Company identified and reported to the DOJ and the SEC, and took remedial actions with respect to, conduct that resulted in the DOJ and the SEC seeking monetary penalties including disgorgement of profits and other remedies. This conduct revolved principally around the Company's products business in countries outside the United States.
The Company recorded charges of €200,000 in 2017 and €77,200 in 2018 encompassing estimates for the claims from the DOJ and the SEC for profit disgorgement, penalties, certain legal expenses, and other related costs or asset impairments believed likely to be necessary for full and final resolution, by litigation or settlement, of the claims and issues arising from the investigation. The increase recorded in 2018 took into consideration preliminary understandings with the DOJ and the SEC on the financial terms of a potential settlement. Following this increase, which takes into account incurred and anticipated legal expenses, impairments and other costs, the provision totaled €223,980 as of December 31, 2018.
On March 29, 2019, the Company entered into a non-prosecution agreement with the DOJ and a separate agreement with the SEC intended to resolve fully and finally the claims against the Company arising from the investigations. The Company paid a combined total in penalties and disgorgement of approximately $231,700 to the DOJ and the SEC in connection with these agreements. The entire amount paid to the DOJ and the SEC was reserved for in charges that the Company recorded in 2017 and 2018 and announced in 2018. As part of the settlement, the Company agreed to retain an independent compliance
63
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
monitor for a period of at least two years and to an additional year of self-reporting. As of July 26, 2019, the monitor was appointed and the monitorship period commenced.
In 2015, the Company self-reported to the German prosecutor conduct with a potential nexus to Germany and continues to cooperate with government authorities in Germany in their review of the conduct that prompted the Company's and United States government investigations.
Since 2012, the Company has made and continues to make further significant investments in its compliance and financial controls and in its compliance, legal and financial organizations. The Company's remedial actions included separation from those employees responsible for the above-mentioned conduct. The Company is dealing with post-FCPA review matters on various levels. The Company continues to be fully committed to compliance with the FCPA and other applicable anti-bribery laws.
Personal injury litigation involving FMCH's acid concentrate product, labeled as Granuflo® or Naturalyte®, first arose in 2012 and was substantially resolved by settlement agreed in principle in February 2016 and consummated in November 2017. Remaining individual personal injury cases do not present material risk.
In addition to the personal injury cases, four institutional plaintiffs filed complaints against FMCH or its affiliates under state deceptive practices statutes resting on certain background allegations common to the GranuFlo®/NaturaLyte® personal injury litigation but seeking as a remedy the repayment of sums paid to FMCH that were attributable to the GranuFlo®/NaturaLyte® products. The claims of two of these plaintiffs were resolved by settlement, and FMCH has increased its litigation reserves to account for anticipated resolution of the other two. See State of Louisiana ex re. Caldwell and Louisiana Health Service & Indemnity Company v. Fresenius Medical Care Airline, et al 2016 Civ. 11035 (U.S.D.C. D. Mass.).
In March 2019, a special-purpose entity organized under Delaware law for the purpose of pursuing litigation amended its complaint to claim rights to recover monetary damages on behalf of various persons and entities who are alleged to have assigned to plaintiff their rights to recover monetary damages arising from their having provided or paid for medical services for dialysis patients receiving treatments using FMCH's acid concentrate product. FMCH is contesting the special-purpose entity's claims.
FMCH believes that the remaining few personal injury, institutional, and special-purpose entity claims described above present only remote and immaterial risks, whether considered individually or in the aggregate. Accordingly, specific reporting on these matters will be discontinued.
FMCH's insurers agreed to the settlement of the acid concentrate personal injury litigation and funded $220,000 of the settlement fund under a reciprocal reservation of rights encompassing certain coverage issues raised by insurers and the FMCH's claims for indemnification of defense costs. FMCH accrued a net expense of $60,000 in connection with the settlement, including legal fees and other anticipated costs. Following entry into the settlement, FMCH's insurers in the AIG group and FMCH each initiated litigation against the other relating to the AIG group's coverage obligations under applicable policies. In the coverage litigation, the AIG group seeks to be indemnified by FMCH for some or all of its $220,000 outlay; FMCH seeks to confirm the AIG group's $220,000 funding obligation, to recover defense costs already incurred by FMCH, and to compel the AIG group to honor defense and indemnification obligations required for resolution of cases not participating in the settlement. As a result of decisions on issues of venue, the coverage litigation is proceeding in the New York state trial court for Manhattan. (National Union Fire Insurance v. Fresenius Medical Care, 2016 Index No. 653108 (Supreme Court of New York for New York County)).
In August 2014, FMCH received a subpoena from the United States Attorney for the District of Maryland inquiring into FMCH's contractual arrangements with hospitals and physicians involving contracts relating to the management of in-patient acute dialysis services. FMCH is cooperating in the investigation.
64
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
In July 2015, the Attorney General for Hawaii issued a civil complaint under the Hawaii False Claims Act alleging a conspiracy pursuant to which certain Liberty Dialysis subsidiaries of FMCH overbilled Hawaii Medicaid for Liberty's Epogen® administrations to Hawaii Medicaid patients during the period from 2006 through 2010, prior to the time of FMCH's acquisition of Liberty. Hawaii v. Liberty DialysisHawaii, LLC et al., Case No. 15-1-1357-07 (Hawaii 1st Circuit). The State alleges that Liberty acted unlawfully by relying on incorrect and unauthorized billing guidance provided to Liberty by Xerox State Healthcare LLC, which acted as Hawaii's contracted administrator for its Medicaid program reimbursement operations during the relevant period. The amount of the overpayment claimed by the State is approximately $8,000, but the State seeks civil remedies, interest, fines, and penalties against Liberty and FMCH under the Hawaii False Claims Act substantially in excess of the overpayment. After prevailing on motions by Xerox to preclude it from doing so, FMCH is pursuing third-party claims for contribution and indemnification against Xerox. The State's False Claims Act complaint was filed after Liberty initiated an administrative action challenging the State's recoupment of alleged overpayments from sums currently owed to Liberty. The civil litigation and administrative action are proceeding in parallel. Trial in the civil litigation is scheduled for March 8, 2021.
On August 31, 2015, FMCH received a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) inquiring into FMCH's participation in and management of dialysis facility joint ventures in which physicians are partners. FMCH continues to cooperate in the Denver United States Attorney's Office ("USAO") investigation, which has come to focus on purchases and sales of minority interests in ongoing outpatient facilities between FMCH and physician groups.
On November 25, 2015, FMCH received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) also inquiring into FMCH's involvement in certain dialysis facility joint ventures in New York. On September 26, 2018, the Brooklyn USAO declined to intervene on the qui tam complaint filed under seal in 2014 that gave rise to this investigation. CKD Project LLC v. Fresenius Medical Care, 2014 Civ. 06646 (E.D.N.Y. November 12, 2014). The court unsealed the complaint, allowing the relator to serve and proceed on its own. The relatora special-purpose entity formed by law firms to pursue qui tam proceedingshas served its complaint and litigation is proceeding.
Beginning October 6, 2015, the United States Attorney for the Eastern District of New York (Brooklyn) has led an investigation, through subpoenas issued under the False Claims Act, of utilization and invoicing by FMCH's subsidiary Azura Vascular Care for a period beginning after FMCH's acquisition of American Access Care LLC ("AAC") in October 2011. FMCH is cooperating in the Brooklyn USAO investigation. The Brooklyn USAO has indicated that its investigation is nationwide in scope and is focused on whether certain access procedures performed at Azura facilities have been medically necessary and whether certain physician assistants employed by Azura exceeded their permissible scope of practice. Allegations against AAC arising in districts in Connecticut, Florida and Rhode Island relating to utilization and invoicing were settled in 2015.
On June 30, 2016, FMCH received a subpoena from the United States Attorney for the Northern District of Texas (Dallas) seeking information under the False Claims Act about the use and management of pharmaceuticals including Velphoro®. The investigation encompasses DaVita, Amgen, Sanofi, and other pharmaceutical manufacturers and includes inquiries into whether certain compensation transfers between manufacturers and pharmacy vendors constituted unlawful kickbacks. FMCH understands that this investigation is substantively independent of the $63,700 settlement by DaVita Rx announced on December 14, 2017 in the matter styled United States ex rel. Gallian v. DaVita Rx, 2016 Civ. 0943 (N.D. Tex.). FMCH has cooperated in the investigation.
On November 18, 2016, FMCH received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) seeking documents and information relating to the operations of Shiel Medical Laboratory, Inc. ("Shiel"), which FMCH acquired in October 2013. In the
65
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
course of cooperating in the investigation and preparing to respond to the subpoena, FMCH identified falsifications and misrepresentations in documents submitted by a Shiel salesperson that relate to the integrity of certain invoices submitted by Shiel for laboratory testing for patients in long term care facilities. On February 21, 2017, FMCH terminated the employee and notified the United States Attorney of the termination and its circumstances. The terminated employee's conduct is expected to result in demands for FMCH to refund overpayments and to pay related penalties under applicable laws, but the monetary value of such payment demands cannot yet be reasonably estimated. FMCH contends that, under the asset sale provisions of its 2013 Shiel acquisition, it is not responsible for misconduct by the terminated employee or other Shiel employees prior to the date of the acquisition. The Brooklyn USAO continues to investigate a range of issues involving Shiel, including allegations of improper compensation (kickbacks) to physicians, and has disclosed that multiple sealed qui tam complaints underlie the investigation.
On December 12, 2017, FMCH sold to Quest Diagnostics certain Shiel operations that are the subject of this Brooklyn subpoena, including the misconduct reported to the United States Attorney. Under the Quest Diagnostics sale agreement, FMCH retains responsibility for responding to the Brooklyn investigation and for liabilities arising from conduct occurring after its 2013 acquisition of Shiel and prior to its sale of Shiel to Quest Diagnostics. FMCH is cooperating in the investigation.
On December 14, 2016, CMS, which administers the federal Medicare program, published an Interim Final Rule ("IFR") titled "Medicare Program; Conditions for Coverage for End-Stage Renal Disease Facilities-Third Party Payment." The IFR would have amended the Conditions for Coverage for dialysis providers, like FMCH and would have effectively enabled insurers to reject premium payments made by or on behalf of patients who received grants for individual market coverage from the American Kidney Fund ("AKF" or "the Fund"). The IFR could thus have resulted in those patients losing individual insurance market coverage. The loss of coverage for these patients would have had a material and adverse impact on the operating results of FMCH.
On January 25, 2017, a federal district court in Texas responsible for litigation initiated by a patient advocacy group and dialysis providers including FMCH preliminarily enjoined CMS from implementing the IFR. Dialysis Patient Citizens v. Burwell, 2017 Civ. 0016 (E.D. Texas, Sherman Div.). The preliminary injunction was based on CMS's failure to follow appropriate notice-and-comment procedures in adopting the IFR. The injunction remains in place and the court retains jurisdiction over the dispute.
On June 22, 2017, CMS requested a stay of proceedings in the litigation pending further rulemaking concerning the IFR. CMS stated, in support of its request, that it expects to publish a Notice of Proposed Rulemaking in the Federal Register and otherwise pursue a notice-and-comment process. Plaintiffs in the litigation, including FMCH, consented to the stay, which was granted by the court on June 27, 2017.
On January 3, 2017, FMCH received a subpoena from the United States Attorney for the District of Massachusetts under the False Claims Act inquiring into FMCH's interactions and relationships with the AKF, including FMCH's charitable contributions to the Fund and the Fund's financial assistance to patients for insurance premiums. FMCH cooperated in the investigation, which was part of a broader investigation into charitable contributions in the medical industry. On August 1, 2019, the United States District Court for the District of Massachusetts entered an order announcing that the United States had declined to intervene on a qui tam complaint underlying the USAO Boston investigation and unsealing the relator's complaint so as to permit the relator to serve the complaint and proceed on his own. The relator did not serve the complaint within the time allowed. On July 17, 2020, the relator filed a notice of dismissal and the court thereafter closed the case.
On April 8, 2019, United Healthcare served a demand for arbitration against FMCH. The demand asserts that FMCH unlawfully "steered" patients by waiving co-payments and other means away from coverage under government-funded insurance plans including Medicare into United Healthcare's commercial plans,
66
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
including Affordable Care Act exchange plans. FMCH is contesting United Healthcare's claims and demands. A final hearing date has been scheduled in the arbitration for August 23, 2021.
In early May 2017, the United States Attorney for the Middle District of Tennessee (Nashville) issued identical subpoenas to FMCH and two subsidiaries under the False Claims Act concerning FMCH's retail pharmaceutical business. The investigation is exploring allegations related to improper inducements to dialysis patients to fill oral prescriptions through FMCH's pharmacy service, improper billing for returned pharmacy products and other allegations similar to those underlying the $63,700 settlement by DaVita Rx in Texas announced on December 14, 2017. United States ex rel. Gallian, 2016 Civ. 00943 (N.D. Tex.). FMCH is cooperating in the investigation.
On March 12, 2018, Vifor Fresenius Medical Care Renal Pharma Ltd. and Vifor Fresenius Medical Care Renal Pharma France S.A.S. (collectively, "VFMCRP") (the joint venture between Vifor Pharma and FMC-AG & Co. KGaA), filed a complaint for patent infringement against Lupin Atlantis Holdings SA and Lupin Pharmaceuticals Inc. (collectively, "Lupin"), and Teva Pharmaceuticals USA, Inc. ("Teva") in the U.S. District Court for the District of Delaware (Case 1:18-cv-00390-LPS). The patent infringement action is in response to Lupin and Teva's filings of Abbreviated New Drug Applications ("ANDA") with the U.S. Food and Drug Administration ("FDA") for generic versions of Velphoro®. Velphoro® is protected by patents listed in the FDA's Approved Drug Products with Therapeutic Equivalence Evaluations, also known as the Orange Book. The complaint was filed within the 45-day period provided for under the Hatch-Waxman legislation, and triggered a stay of FDA approval of the ANDAs for 30 months (specifically, up to July 29, 2020 for Lupin's ANDA; and August 6, 2020 for Teva's ANDA), or a shorter time if a decision in the infringement suit is reached that the patents-at-issue are invalid or not infringed. In response to another ANDA being filed for a generic Velphoro®, VFMCRP filed a complaint for patent infringement against Annora Pharma Private Ltd., and Hetero Labs Ltd. (collectively, "Annora"), in the U.S. District Court for the District of Delaware on December 17, 2018. A 30-month stay of FDA approval of Annora's ANDA will run through to May 30, 2021. On May 26, 2020, VFMCRP filed a further complaint for patent infringement against Lupin in the U.S. District Court for the District of Delaware (Case No. 1:20-cv-00697-MN) in response to Lupin's ANDA for a generic version of Velphoro® and on the basis of a newly listed patent in the Orange Book. On July 6, 2020, VFMCRP filed an additional complaint for patent infringement against Lupin and Teva in the U.S. District Court for the District of Delaware (Case No. 1:20-cv-00911-MN) in response to the companies' ANDA for generic versions of Velphoro® and on the basis of two newly listed patents in the Orange Book.
On December 17, 2018, FMCH was served with a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) as part of an investigation of allegations against DaVita, Inc. involving transactions between FMCH and DaVita. The subject transactions include sales and purchases of dialysis facilities, dialysis-related products and pharmaceuticals, including dialysis machines and dialyzers, and contracts for certain administrative services. FMCH is cooperating in the investigation.
On June 28, 2019, certain FMCH subsidiaries filed a complaint against the United States seeking to recover monies owed to them by the United States Department of Defense under the Tricare program, and to preclude Tricare from recouping monies previously paid. Bio-Medical Applications of Georgia, Inc., et al. v. United States, CA 19-947, United States Court of Federal Claims. Tricare provides reimbursement for dialysis treatments and other medical care provided to members of the military services, their dependents and retirees. The litigation challenges unpublished administrative actions by Tricare administrators reducing the rate of compensation paid for dialysis treatments provided to Tricare beneficiaries based on a recasting or "crosswalking" of codes used and followed in invoicing without objection for many years. Tricare administrators have acknowledged the unpublished administrative action and declined to change or abandon it. On July 8, 2020, the U.S. government filed its answer (and confirmed their position). The parties will proceed to discovery. The court has not yet set a date for trial in
67
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
this matter. FMCH has imposed a constraint on revenue otherwise recognized from the Tricare program that it believes, in consideration of facts currently known, sufficient to account for the risk of this litigation.
From time to time, the Company is a party to or may be threatened with other litigation or arbitration, claims or assessments arising in the ordinary course of its business. Management regularly analyzes current information including, as applicable, the Company's defenses and insurance coverage and, as necessary, provides accruals for probable liabilities for the eventual disposition of these matters.
The Company, like other health care providers, insurance plans and suppliers, conducts its operations under intense government regulation and scrutiny. It must comply with regulations which relate to or govern the safety and efficacy of medical products and supplies, the marketing and distribution of such products, the operation of manufacturing facilities, laboratories, dialysis clinics and other health care facilities, and environmental and occupational health and safety. With respect to its development, manufacture, marketing and distribution of medical products, if such compliance is not maintained, the Company could be subject to significant adverse regulatory actions by the FDA and comparable regulatory authorities outside the U.S. These regulatory actions could include warning letters or other enforcement notices from the FDA, and/or comparable foreign regulatory authority which may require the Company to expend significant time and resources in order to implement appropriate corrective actions. If the Company does not address matters raised in warning letters or other enforcement notices to the satisfaction of the FDA and/or comparable regulatory authorities outside the U.S., these regulatory authorities could take additional actions, including product recalls, injunctions against the distribution of products or operation of manufacturing plants, civil penalties, seizures of the Company's products and/or criminal prosecution. FMCH is currently engaged in remediation efforts with respect to one pending FDA warning letter. The Company must also comply with the laws of the United States, including the federal Anti-Kickback Statute, the federal False Claims Act, the federal Stark Law, the federal Civil Monetary Penalties Law and the federal Foreign Corrupt Practices Act as well as other federal and state fraud and abuse laws. Applicable laws or regulations may be amended, or enforcement agencies or courts may make interpretations that differ from the Company's interpretations or the manner in which it conducts its business. Enforcement has become a high priority for the federal government and some states. In addition, the provisions of the False Claims Act authorizing payment of a portion of any recovery to the party bringing the suit encourage private plaintiffs to commence whistleblower actions. By virtue of this regulatory environment, the Company's business activities and practices are subject to extensive review by regulatory authorities and private parties, and continuing audits, subpoenas, other inquiries, claims and litigation relating to the Company's compliance with applicable laws and regulations. The Company may not always be aware that an inquiry or action has begun, particularly in the case of whistleblower actions, which are initially filed under court seal.
The Company operates many facilities and handles the personal data ("PD") of its patients and beneficiaries throughout the United States and other parts of the world and engages with other business associates to help it carry out its health care activities. In such a decentralized system, it is often difficult to maintain the desired level of oversight and control over the thousands of individuals employed by many affiliated companies and its business associates. On occasion, the Company or its business associates may experience a breach under the Health Insurance Portability and Accountability Act Privacy Rule and Security Rules, the EU's General Data Protection Regulation and or other similar laws ("Data Protection Laws") when there has been impermissible use, access, or disclosure of unsecured PD or when the Company or its business associates neglect to implement the required administrative, technical and physical safeguards of its electronic systems and devices, or a data breach that results in impermissible use, access or disclosure of personal identifying information of its employees, patients and beneficiaries. On those occasions, the Company must comply with applicable breach notification requirements.
The Company relies upon its management structure, regulatory and legal resources, and the effective operation of its compliance program to direct, manage and monitor the activities of its employees. On
68
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
8. Commitments and contingencies (Continued)
occasion, the Company may identify instances where employees or other agents deliberately, recklessly or inadvertently contravene the Company's policies or violate applicable law. The actions of such persons may subject the Company and its subsidiaries to liability under the Anti-Kickback Statute, the Stark Law, the False Claims Act, Data Protection Laws, the Health Information Technology for Economic and Clinical Health Act and the Foreign Corrupt Practices Act, among other laws and comparable state laws or laws of other countries.
Physicians, hospitals and other participants in the health care industry are also subject to a large number of lawsuits alleging professional negligence, malpractice, product liability, worker's compensation or related claims, many of which involve large claims and significant defense costs. The Company has been and is currently subject to these suits due to the nature of its business and expects that those types of lawsuits may continue. Although the Company maintains insurance at a level which it believes to be prudent, it cannot assure that the coverage limits will be adequate or that insurance will cover all asserted claims. A successful claim against the Company or any of its subsidiaries in excess of insurance coverage could have a material adverse effect upon it and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company's reputation and business.
The Company has also had claims asserted against it and has had lawsuits filed against it relating to alleged patent infringements or businesses that it has acquired or divested. These claims and suits relate both to operation of the businesses and to the acquisition and divestiture transactions. The Company has, when appropriate, asserted its own claims, and claims for indemnification. A successful claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition, and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company's reputation and business.
In Germany, the tax audits for the years 2006 through 2009 have been substantially completed. The German tax authorities have indicated a re-qualification of dividends received in connection with intercompany mandatorily redeemable preferred shares into fully taxable interest payments for these and subsequent years until 2013. The Company has defended its position and will avail itself of appropriate remedies. The Company is also subject to ongoing and future tax audits in the U.S., Germany and other jurisdictions in the ordinary course of business. Tax authorities routinely pursue adjustments to the Company's tax returns and disallowances of claimed tax deductions. When appropriate, the Company defends these adjustments and disallowances and asserts its own claims. A successful tax related claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition and results of operations.
Other than those individual contingent liabilities mentioned above, the current estimated amount of the Company's other known individual contingent liabilities is immaterial.
69
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
9. Financial instruments
The following tables show the carrying amounts and fair values of the Company's financial instruments at June 30, 2020 and December 31, 2019:
Carrying amount and fair value of financial instruments
in € THOUS
|
Carrying amount | Fair value | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 2020
|
Amortized
cost |
FVPL | FVOCI |
Not
classified |
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Cash and cash equivalents(1) |
956,299 | 933,134 | | | 1,889,433 | 932,978 | 156 | | |||||||||||||||||
Trade accounts and other receivables |
3,372,527 | | | 75,644 | 3,448,171 | | | | |||||||||||||||||
Accounts receivable from related parties |
133,214 | | | | 133,214 | | | | |||||||||||||||||
Derivativescash flow hedging instruments |
| | | 4,225 | 4,225 | | 4,225 | | |||||||||||||||||
Derivativesnot designated as hedging instruments |
| 7,000 | | | 7,000 | | 7,000 | | |||||||||||||||||
Equity investments |
| 207,425 | 61,404 | | 268,829 | 11,788 | 59,094 | 197,947 | |||||||||||||||||
Debt securities |
| 97,302 | 288,377 | | 385,679 | 379,798 | 5,881 | | |||||||||||||||||
Other financial assets |
165,188 | | | 107,230 | 272,418 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other current and non-current assets |
165,188 | 311,727 | 349,781 | 111,455 | 938,151 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets |
4,627,228 | 1,244,861 | 349,781 | 187,099 | 6,408,969 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable |
678,121 | | | | 678,121 | | | | |||||||||||||||||
Accounts payable to related parties |
135,309 | | | | 135,309 | | | | |||||||||||||||||
Short-term debt and short-term debt from related parties |
878,631 | | | | 878,631 | | | | |||||||||||||||||
Long-term debt |
7,786,653 | | | | 7,786,653 | 6,470,321 | 1,557,796 | | |||||||||||||||||
Long-term lease liabilities and long-term lease liabilities from related parties |
| | | 4,812,233 | 4,812,233 | | | | |||||||||||||||||
Derivativescash flow hedging instruments |
| | | 667 | 667 | | 667 | | |||||||||||||||||
Derivativesnot designated as hedging instruments |
| 10,090 | | | 10,090 | | 10,090 | | |||||||||||||||||
Variable payments outstanding for acquisitions |
| 71,441 | | | 71,441 | | | 71,441 | |||||||||||||||||
Noncontrolling interest subject to put provisions |
| | | 944,252 | 944,252 | | | 944,252 | |||||||||||||||||
Other financial liabilities |
1,670,965 | | | | 1,670,965 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other current and non-current liabilities |
1,670,965 | 81,531 | | 944,919 | 2,697,415 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Financial liabilities |
11,149,679 | 81,531 | | 5,757,152 | 16,988,362 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
70
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
9. Financial instruments (Continued)
Carrying amount and fair value of financial instruments
in € THOUS
|
Carrying amount | Fair value | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
December 31, 2019
|
Amortized
cost |
FVPL | FVOCI |
Not
classified |
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Cash and cash equivalents(1) |
841,046 | 166,677 | | | 1,007,723 | 166,677 | | | |||||||||||||||||
Trade accounts and other receivables |
3,343,873 | | | 77,473 | 3,421,346 | | | | |||||||||||||||||
Accounts receivable from related parties |
159,196 | | | | 159,196 | | | | |||||||||||||||||
Derivativescash flow hedging instruments |
| | | 107 | 107 | | 107 | | |||||||||||||||||
Derivativesnot designated as hedging instruments |
| 2,406 | | | 2,406 | | 2,406 | | |||||||||||||||||
Equity investments |
| 186,273 | 50,975 | | 237,248 | 13,110 | 41,084 | 183,054 | |||||||||||||||||
Debt securities |
| 107,988 | 261,833 | | 369,821 | 365,170 | 4,651 | | |||||||||||||||||
Other financial assets |
141,355 | | | 111,649 | 253,004 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other current and non-current assets |
141,355 | 296,667 | 312,808 | 111,756 | 862,586 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets |
4,485,470 | 463,344 | 312,808 | 189,229 | 5,450,851 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable |
716,526 | | | | 716,526 | | | | |||||||||||||||||
Accounts payable to related parties |
118,663 | | | | 118,663 | | | | |||||||||||||||||
Short-term debt and short-term debt from related parties |
1,171,853 | | | | 1,171,853 | | | | |||||||||||||||||
Long-term debt |
7,905,557 | | | | 7,905,557 | 5,555,475 | 2,537,932 | | |||||||||||||||||
Long-term lease liabilities and long-term lease liabilities from related parties |
| | | 4,705,038 | 4,705,038 | | | | |||||||||||||||||
Derivativescash flow hedging instruments |
| | | 2,534 | 2,534 | | 2,534 | | |||||||||||||||||
Derivativesnot designated as hedging instruments |
| 10,762 | | | 10,762 | | 10,762 | | |||||||||||||||||
Variable payments outstanding for acquisitions |
| 89,677 | | | 89,677 | | | 89,677 | |||||||||||||||||
Noncontrolling interest subject to put provisions |
| | | 934,425 | 934,425 | | | 934,425 | |||||||||||||||||
Other financial liabilities |
1,414,464 | | | | 1,414,464 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other current and non-current liabilities |
1,414,464 | 100,439 | | 936,959 | 2,451,862 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Financial liabilities |
11,327,063 | 100,439 | | 5,641,997 | 17,069,499 | | | | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative and non-derivative financial instruments are categorised in the following three-tier fair value hierarchy that reflects the significance of the inputs in making the measurements. Level 1 is defined as observable inputs, such as quoted prices in active markets. Level 2 is defined as inputs other than quoted prices in active markets that are directly or indirectly observable. Level 3 is defined as unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions. Fair value information is not provided for financial instruments, if the carrying amount is a reasonable estimate of fair value due to the relatively short period of maturity of these instruments. Transfers between levels of the fair value hierarchy have not occurred as of June 30, 2020 and December 31, 2019. The Company accounts for transfers at the end of the reporting period.
71
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
9. Financial instruments (Continued)
Derivative financial instruments
In order to manage the risk of currency exchange rate fluctuations and interest rate fluctuations, the Company enters into various hedging transactions by means of derivative instruments with highly rated financial institutions. The Company primarily enters into foreign exchange forward contracts and interest rate swaps. Derivative contracts that do not qualify for hedge accounting are utilized for economic purposes. The Company does not use financial instruments for trading purposes.
Non-derivative financial instruments
The significant methods and assumptions used for the classification and measurement of non-derivative financial instruments are as follows:
The Company assessed its business models and the cash flow characteristics of its financial assets. The vast majority of the non-derivative financial assets are held in order to collect the contractual cash flows. The contractual terms of the financial assets allow the conclusion that the cash flows represent payment of principle and interest only. Trade accounts and other receivables, Accounts receivable from related parties and Other financial assets are consequently measured at amortized cost.
Cash and cash equivalents are comprised of cash funds and other short-term investments. Cash funds are measured at amortized cost. Short-term investments are highly liquid and readily convertible to known amounts of cash. Short-term investments are measured at FVPL. The risk of changes in fair value is insignificant.
Equity investments are not held for trading. At initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic investments in OCI. If equity instruments are quoted in an active market, the fair value is based on price quotations at the period-end-date. From time to time the Company engages external valuation firms to determine the fair value of Level 3 equity investments. The external valuation uses a discounted cash flow model, which includes significant unobservable inputs such as investment specific forecasted financial statements, weighted average cost of capital, that reflects current market assessments as well as a terminal growth rate.
The majority of the debt securities are held within a business model whose objective is achieving both contractual cash flows and sell the securities. The standard coupon bonds give rise on specified dates to cash flows that are solely payments of principal and interest on the outstanding principal amount. Subsequently these financial assets have been classified as FVOCI. The smaller part of debt securities does not give rise to cash flows that are solely payments of principle and interest. Consequently, these securities are measured at FVPL. In general, most of the debt securities are quoted in an active market.
Long-term debt is recognized at its carrying amount. The fair values of major long-term debt are calculated on the basis of market information. Liabilities for which market quotes are available are measured using these quotes. The fair values of the other long-term debt are calculated at the present value of the respective future cash flows. To determine these present values, the prevailing interest rates and credit spreads for the Company as of the balance sheet date are used.
Variable payments outstanding for acquisitions are recognized at their fair value. The estimation of the individual fair values is based on the key inputs of the arrangement that determine the future contingent payment as well as the Company's expectation of these factors. The Company assesses the likelihood and timing of achieving the relevant objectives. The underlying assumptions are reviewed regularly.
Noncontrolling interests subject to put provisions are recognized at the present value of the exercise price of the option. The exercise price of the option is generally based on fair value. The methodology the Company uses to estimate the fair values assumes the greater of net book value or a multiple of earnings, based on historical earnings, development stage of the underlying business and other factors. From time to
72
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
9. Financial instruments (Continued)
time the Company engages external valuation firms for the valuation of the put provisions. The external valuation estimates the fair values using a combination of discounted cash flows and a multiple of earnings and/or revenue. When applicable, the obligations are discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. The estimated fair values of the noncontrolling interests subject to these put provisions can also fluctuate, and the discounted cash flows as well as the implicit multiple of earnings and/or revenue at which these noncontrolling interest obligations may ultimately be settled could vary significantly from the Company's current estimates depending upon market conditions. For the purpose of analyzing the impact of changes in unobservable inputs on the fair value measurement of noncontrolling interest subject to put provisions, the Company assumes an increase on earnings of 10% compared to the actual estimation as of the balance sheet date. The corresponding increase in fair value of €67,924 is then compared to the total liabilities and the shareholder's equity of the Company. This analysis shows that an increase of 10% in the relevant earnings would have an effect of less than 1% on the total liabilities and less than 1% on the shareholder's equity of the Company.
Following is a roll forward of Level 3 financial instruments at June 30, 2020 and December 31, 2019:
Reconciliation from beginning to ending balance of level 3 financial instruments
in € THOUS
|
2020 | 2019 | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Equity
investments |
Variable
payments outstanding for acquisitions |
Noncontrolling
interests subject to put provisions |
Equity
investments |
Variable
payments outstanding for acquisitions |
Noncontrolling
interests subject to put provisions |
|||||||||||||
Beginning balance at January 1, |
183,054 | 89,677 | 934,425 | | 172,278 | 818,871 | |||||||||||||
Transfer from Level 2 |
| | | 186,427 | | | |||||||||||||
Increase |
| 11,826 | 16,096 | 2,233 | 4,828 | 109,109 | |||||||||||||
Decrease |
| (28,506 | ) | (87,155 | ) | | (43,941 | ) | (20,269 | ) | |||||||||
(Gain) loss recognized in profit or loss |
14,535 | 166 | | 128 | (41,537 | ) | | ||||||||||||
(Gain) loss recognized in equity |
| | 82,537 | | | 14,523 | |||||||||||||
Foreign currency translation and other changes |
358 | (1,722 | ) | (1,651 | ) | (5,734 | ) | (1,951 | ) | 12,191 | |||||||||
| | | | | | | | | | | | | | | | | | | |
Ending balance at June 30, and December 31, |
197,947 | 71,441 | 944,252 | 183,054 | 89,677 | 934,425 | |||||||||||||
| | | | | | | | | | | | | | | | | | | |
10. Segment and corporate information
The Company's operating segments are the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment. The operating segments are determined based upon how the Company manages its businesses with geographical responsibilities. All segments are primarily engaged in providing health care services and the distribution of products and equipment for the treatment of ESRD and other extracorporeal therapies.
Management evaluates each segment using measures that reflect all of the segment's controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate measures are revenue, operating income and operating income margin. The Company does not include income taxes as it believes this is outside the segments' control. Financing is a corporate function, which the Company's segments do not control. Therefore, the Company does not include interest expense relating to financing as a segment measurement. Similarly, the Company does not allocate certain costs, which relate primarily to certain headquarters' overhead charges, including accounting and finance, because the Company believes that these costs are also not within the control of the individual segments.
73
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
10. Segment and corporate information (Continued)
Production of products, production asset management, quality and supply chain management as well as procurement related to production are centrally managed. Products transferred to the segments are transferred at cost; therefore, no internal profit is generated. The associated internal revenue for the product transfers and their elimination are recorded as corporate activities. Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. The Company's global research and development as well as its Global Medical Office (as of January 1, 2020), which seeks to standardize medical treatments and clinical processes within the Company, are also centrally managed. These corporate activities ("Corporate") do not fulfill the definition of a segment according to IFRS 8, Operating Segments. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but are accounted for as Corporate.
Information pertaining to the Company's segment and Corporate activities for the six months ended June 30, 2020 and 2019 is set forth below:
74
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
10. Segment and corporate information (Continued)
Segment and corporate information
in € THOUS
|
North
America Segment |
EMEA
Segment |
Asia-
Pacific Segment |
Latin
America Segment |
Segment
Total |
Corporate | Total | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three months ended June 30, 2020 |
||||||||||||||||||||||
Revenue from contracts with customers |
3,155,924 | 679,363 | 435,351 | 168,602 | 4,439,240 | 10,715 | 4,449,955 | |||||||||||||||
Other revenue external customers |
83,865 | 7,713 | 14,861 | 951 | 107,390 | | 107,390 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue external customers |
3,239,789 | 687,076 | 450,212 | 169,553 | 4,546,630 | 10,715 | 4,557,345 | |||||||||||||||
Inter-segment revenue |
6,848 | 1,264 | 24 | 69 | 8,205 | (8,205 | ) | | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue |
3,246,637 | 688,340 | 450,236 | 169,622 | 4,554,835 | 2,510 | 4,557,345 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Operating income |
609,414 | 77,622 | 63,311 | 10,921 | 761,268 | (105,344 | ) | 655,924 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Interest |
(91,940 | ) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes |
563,984 | |||||||||||||||||||||
Depreciation and amortization |
(257,538 | ) | (48,776 | ) | (27,028 | ) | (8,534 | ) | (341,876 | ) | (62,997 | ) | (404,873 | ) | ||||||||
Impairment loss |
395 | (5,769 | ) | | | (5,374 | ) | (34 | ) | (5,408 | ) | |||||||||||
Income (loss) from equity method investees |
29,464 | (22,893 | ) | (2,385 | ) | (102 | ) | 4,084 | (179 | ) | 3,905 | |||||||||||
Additions of property, plant and equipment, intangible assets and right of use assets |
246,740 | 74,403 | 26,983 | 13,532 | 361,658 | 148,439 | 510,097 | |||||||||||||||
Three months ended June 30, 2019 |
|
|
|
|
|
|
|
|||||||||||||||
Revenue from contracts with customers |
3,000,624 | 639,324 | 439,091 | 171,511 | 4,250,550 | 5,392 | 4,255,942 | |||||||||||||||
Other revenue external customers |
60,470 | 8,856 | 18,907 | 857 | 89,090 | | 89,090 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue external customers |
3,061,094 | 648,180 | 457,998 | 172,368 | 4,339,640 | 5,392 | 4,345,032 | |||||||||||||||
Inter-segment revenue |
399 | (1 | ) | 222 | 17 | 637 | (637 | ) | | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue |
3,061,493 | 648,179 | 458,220 | 172,385 | 4,340,277 | 4,755 | 4,345,032 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Operating income |
428,880 | 96,389 | 69,357 | 5,887 | 600,513 | (79,256 | ) | 521,257 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Interest |
(114,355 | ) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes |
406,902 | |||||||||||||||||||||
Depreciation and amortization |
(249,451 | ) | (47,372 | ) | (22,829 | ) | (7,668 | ) | (327,320 | ) | (59,681 | ) | (387,001 | ) | ||||||||
Income (loss) from equity method investees |
24,467 | (3,204 | ) | 856 | 362 | 22,481 | | 22,481 | ||||||||||||||
Additions of property, plant and equipment and intangible assets |
302,901 | 38,030 | 32,175 | 14,023 | 387,129 | 80,078 | 467,207 | |||||||||||||||
Six months ended June 30, 2020 |
|
|
|
|
|
|
|
|||||||||||||||
Revenue from contracts with customers |
6,258,201 | 1,351,857 | 867,287 | 335,864 | 8,813,209 | 22,680 | 8,835,889 | |||||||||||||||
Other revenue external customers |
167,811 | 13,965 | 25,819 | 1,657 | 209,252 | | 209,252 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue external customers |
6,426,012 | 1,365,822 | 893,106 | 337,521 | 9,022,461 | 22,680 | 9,045,141 | |||||||||||||||
Inter-segment revenue |
14,023 | 2,577 | 28 | 190 | 16,818 | (16,818 | ) | | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue |
6,440,035 | 1,368,399 | 893,134 | 337,711 | 9,039,279 | 5,862 | 9,045,141 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Operating income |
1,072,825 | 178,676 | 140,120 | 17,778 | 1,409,399 | (198,345 | ) | 1,211,054 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Interest |
(196,159 | ) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes |
1,014,895 | |||||||||||||||||||||
Depreciation and amortization |
(514,167 | ) | (94,751 | ) | (52,987 | ) | (17,246 | ) | (679,151 | ) | (125,396 | ) | (804,547 | ) | ||||||||
Impairment loss |
(604 | ) | (5,783 | ) | | | (6,387 | ) | (34 | ) | (6,421 | ) | ||||||||||
Income (loss) from equity method investees |
50,514 | (24,555 | ) | (1,435 | ) | (31 | ) | 24,493 | (179 | ) | 24,314 | |||||||||||
Total assets |
22,912,147 | 3,891,296 | 2,767,942 | 902,360 | 30,473,745 | 3,716,108 | 34,189,853 | |||||||||||||||
thereof investments in equity method investees |
376,697 | 183,193 | 100,120 | 26,015 | 686,025 | | 686,025 | |||||||||||||||
Additions of property, plant and equipment, intangible assets and right of use assets |
606,606 | 119,576 | 72,273 | 30,699 | 829,154 | 224,224 | 1,053,378 | |||||||||||||||
Six months ended June 30, 2019 |
|
|
|
|
|
|
|
|||||||||||||||
Revenue from contracts with customers |
5,826,836 | 1,275,124 | 850,694 | 332,112 | 8,284,766 | 9,560 | 8,294,326 | |||||||||||||||
Other revenue external customers |
121,034 | 25,669 | 34,878 | 1,682 | 183,263 | | 183,263 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue external customers |
5,947,870 | 1,300,793 | 885,572 | 333,794 | 8,468,029 | 9,560 | 8,477,589 | |||||||||||||||
Inter-segment revenue |
975 | | 456 | 82 | 1,513 | (1,513 | ) | | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Revenue |
5,948,845 | 1,300,793 | 886,028 | 333,876 | 8,469,542 | 8,047 | 8,477,589 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Operating income |
801,274 | 234,165 | 164,059 | 17,282 | 1,216,780 | (158,973 | ) | 1,057,807 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Interest |
(222,203 | ) | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes |
835,604 | |||||||||||||||||||||
Depreciation and amortization |
(478,186 | ) | (94,345 | ) | (45,430 | ) | (16,031 | ) | (633,992 | ) | (115,385 | ) | (749,377 | ) | ||||||||
Income (loss) from equity method investees |
45,829 | (4,521 | ) | 562 | 644 | 42,514 | | 42,514 | ||||||||||||||
Total assets |
21,436,560 | 4,240,496 | 2,688,054 | 870,927 | 29,236,037 | 2,719,964 | 31,956,001 | |||||||||||||||
thereof investments in equity method investees |
357,756 | 174,557 | 97,487 | 24,322 | 654,122 | | 654,122 | |||||||||||||||
Additions of property, plant and equipment and intangible assets |
491,051 | 85,144 | 45,918 | 28,806 | 650,919 | 153,565 | 804,484 |
75
FRESENIUS MEDICAL CARE AG & Co. KGaA
Notes to consolidated financial statements (Continued)
(unaudited)
(in THOUS, except share and per share data)
11. Events occurring after the balance sheet date
On July 8, 2020 the Company announced that it will hold its 2020 Annual General Meeting ("AGM") on August 27, 2020. The AGM was postponed from its originally scheduled date of May 19, 2020 due to COVID-19 and will be held as a virtual event given the uncertainty regarding restrictions on large public events in Germany. The proposed dividend by the General Partner and the Supervisory Board, which has also been delayed as a result of the postponement of the AGM, remains unchanged at €1.20 per share. The invitation and agenda for the AGM were published in the German Federal Gazette with a convenience translation subsequently posted on the Company's website at www.freseniusmedicalcare.com/en/agm.
The bonds issued by Fresenius Medical Care US Finance II, Inc. in the amount of $500,000, originally due on October 15, 2020, were redeemed prior to maturity on July 17, 2020.
No further significant activities have taken place subsequent to the balance sheet date June 30, 2020 that have a material impact on the key figures and earnings presented. Currently, there are no other significant changes in the Company's structure, management, legal form or personnel.
76
Quantitative and qualitative disclosures about market risk
The information in note 9 of the notes to consolidated financial statements (unaudited), presented elsewhere in this report is incorporated by this reference.
77
The Company is a "foreign private issuer" within the meaning of Rule 3b-4(c) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As such, the Company is not required to file quarterly reports with the Securities and Exchange Commission and is required to provide an evaluation of the effectiveness of its disclosure controls and procedures, to disclose significant changes in its internal control over financial reporting and to provide certifications of its Chief Executive Officer and Chief Financial Officer under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 only in its Annual Report on Form 20-F. The Company furnishes quarterly financial information to the Securities and Exchange Commission (the "Commission") and such certifications under cover of Form 6-K on a voluntary basis and pursuant to the provisions of the Company's pooling agreement entered into for the benefit of the public holders of our shares. In connection with such voluntary reporting, the Company's management, including the Chief Executive Officer and the Chief Financial Officer of the Company's General Partner, has conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report, of the type contemplated by Securities Exchange Act Rule 13a-15. During the third quarter of fiscal 2019, we identified a material weakness in internal control relating to revenue recognition, specifically for estimating the transaction price and constraining the variable consideration of the transaction price for certain fee-for-service revenue arrangements under legal consideration and timely adjusting the constraint of variable consideration when new information arises and determined that this material weakness existed as of December 31, 2018. This material weakness continues to exist as of the date of June 30, 2020 (for further detail regarding this material weakness, see Item 15D. "Changes in internal control over financial reporting" included within our Annual Report on Form 20-F for the year ended December 31, 2019). As a result, the Chief Executive Officer and the Chief Financial Officer concluded in connection with the furnishing of this report, that the Company's disclosure controls and procedures were not effective as of June 30, 2020.
We have advised our audit committee of this deficiency in our internal control over financial reporting, and the fact that this deficiency constitutes a material weakness. A material weakness in internal control over financial reporting is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis by our internal controls.
Because a material weakness was determined to exist, we performed additional procedures to ensure our consolidated financial statements included in this report on Form 6-K are presented fairly, in all material respects, and that our financial condition, results of operations and cash flows for the periods are presented in conformity with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). This control deficiency did not result in errors to accounts receivable and revenue from specific fee-for-service arrangements in the Company's consolidated financial statements for the six months ended June 30, 2020.
We are undertaking steps to strengthen the Company's controls relating to revenue recognition, specifically for estimating the transaction price and constraining the variable consideration of the transaction price for certain fee-for-service revenue arrangements under legal consideration and its related accounts receivable, including:
We are committed to maintaining a strong internal control environment and believe the above noted remediation efforts will represent significant improvements to the internal control environment. The identified material weakness in internal control will not be considered fully remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.
78
On March 29, 2019, the Company entered into a non-prosecution agreement with the DOJ and a separate agreement with the SEC intended to resolve fully and finally the government's claims against the Company arising from the investigations, see note 8 of the notes to the consolidated financial statements (unaudited) presented elsewhere in this Report. The Company continues to implement enhancements to its anti-corruption compliance program, including internal controls related to compliance with international anti-bribery laws. The Company continues to be fully committed to compliance with the Foreign Corrupt Practices Act and other applicable anti-bribery laws.
In 2015, the Company self-reported to the German prosecutor conduct with a potential nexus to Germany and continues to cooperate with government authorities in Germany in their review of the conduct that prompted the Company's and United States government investigations.
Since 2012, the Company has made and continues to make further significant investments in its compliance and financial controls and in its compliance, legal and financial organizations. The Company's remedial actions included separation from those employees responsible for the above-mentioned conduct. The Company is dealing with post-FCPA review matters on various levels. The Company continues to be fully committed to compliance with the FCPA and other applicable anti-bribery laws.
Except as noted in the preceding paragraphs, there has not been any change in our system of internal control over financial reporting during the quarter ended June 30, 2020 that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
79
The information in note 8 of the notes to consolidated financial statements (unaudited), presented elsewhere in this report is incorporated by this reference.
80
Exhibit No. |
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10.1 | Final Terms dated May 27, 2019 for EUR 750,000,000 1.500% Fixed Rate Euro-Denominated Bonds due 2030 (filed herewith). | ||
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10.2 |
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Final Terms dated May 27, 2019 for EUR 500,000,000 1.000% Fixed Rate Euro-Denominated Bonds due 2026 (filed herewith). |
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31.1 |
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Certification of Chief Executive Officer and Chairman of the Management Board of the Company's General Partner Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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31.2 |
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Certification of Chief Financial Officer and member of the Management Board of the Company's General Partner Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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32.1 |
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Certification of Chief Executive Officer and Chairman of the Management Board of the Company's General Partner and Chief Financial Officer and member of the Management Board of the Company's General Partner Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (this exhibit accompanies this report as required by the Sarbanes-Oxley Act of 2002 and is not to be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended). |
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101 |
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The following financial statements as of and for the three- and six-month periods ended June 30, 2020 from FMC-AG & Co. KGaA's Report on Form 6-K for the month of July 2020, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Shareholders' Equity and (vi) Notes to Consolidated Financial Statements. |
81
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DATE: July 30, 2020
FRESENIUS MEDICAL CARE AG & Co. KGaA a partnership limited by shares, represented by: | ||||||
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FRESENIUS MEDICAL CARE MANAGEMENT AG, its General Partner |
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By: |
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/s/ RICE POWELL |
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Name: | Rice Powell | |||||
Title: | Chief Executive Officer and Chairman of the Management Board of the General Partner | |||||
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By: |
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/s/ HELEN GIZA |
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Name: | Helen Giza | |||||
Title: | Chief Financial Officer and member of the Management Board of the General Partner |
82
MiFID II Product Governance Solely for the purposes of each manufacturers product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties, professional clients and retail clients, each as defined in Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended (MiFID II); (ii) all channels for distribution to eligible counterparties and professional clients are appropriate; and (iii) the following channels for distribution of the Notes to retail clients are appropriate - investment advice, portfolio management and non-advised sales. Any person subsequently offering, selling or recommending the Notes (each a Distributor) should take into consideration the manufacturers target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers target market assessment) and determining appropriate distribution channels, subject to the distributors suitability and appropriateness obligations under MiFID II, as applicable. The targeted investors are expected to have (1) at least informed knowledge and/or experience with financial products, (2) the ability to bear losses resulting from interest rate changes and no capital loss bearing capacity if held to maturity, (3) a medium risk profile (4) a general capital formation/ asset optimization as investment objective and (5) a long term investment horizon.
The Final Terms of Notes will be displayed on the website of the Luxembourg Stock Exchange (www.bourse.lu).
May 27, 2020
27. Mai 2020
FINAL TERMS
ENDGÜLTIGE BEDINGUNGEN
Fresenius Medical Care AG & Co. KGaA
EUR 750,000,000 1.500 per cent. Notes due May 29, 2030
EUR 750.000.000 1,500 % Schuldverschreibungen fällig 29. Mai 2030
Series: 6, Tranche 1
Seriennummer: 6, Tranche 1
issued pursuant to the
begeben aufgrund des
EUR 10,000,000,000
Debt Issuance Program
Dated May 19, 2020
vom 19. Mai 2020
of
der
Fresenius Medical Care AG & Co. KGaA
Issue Price: 99.742%
Ausgabepreis: 99,742%
Issue Date May 29, 2020
Begebungstag: 29. Mai 2020
These are the Final Terms of an issue of Notes under the EUR 10,000,000,000 Debt Issuance Program of Fresenius Medical Care AG & Co. KGaA (the Program). These Final Terms have been prepared for the purpose of Article 8(5) in conjunction with Article 25(4) of the Regulation (EU) 2017/1129 of the European Parliament and of
the Council of June 14, 2017, as amended, and must be read in conjunction with the Base Prospectus dated May 19, 2020 (the Prospectus). Full information on Fresenius Medical Care AG & Co. KGaA and the offer of the Notes is only available on the basis of the combination of the Prospectus and these Final Terms. The Prospectus and any supplement thereto are available for viewing in electronic form on the website of the Luxembourg Stock Exchange (www.bourse.lu). Copies may be obtained free of charge from Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Str. 1, 61352 Bad Homburg vor der Höhe, Germany. A summary of the individual issue of the Notes is annexed to these Final Terms.
Diese Endgültigen Bedingungen enthalten Angaben zur Emission von Schuldverschreibungen unter dem EUR 10.000.000.000 Debt Issuance Programm der Fresenius Medical Care AG & Co. KGaA (das Programm). Diese Endgültigen Bedingungen wurden für die Zwecke des Artikels 8 Abs. 5 i.V.m. Artikel 25 Abs. 4 der Verordnung (EU) 2017/1129 des Europäischen Parlaments und des Rates vom 14. Juni 2017, in der jeweils geltenden Fassung, abgefasst und sind in Verbindung mit dem Basisprospekt vom 19. Mai 2020 (der Prospekt) zu lesen. Vollständige Informationen über Fresenius Medical Care AG & Co. KGaA und das Angebot der Schuldverschreibungen sind nur verfügbar, wenn die Endgültigen Bedingungen und der Prospekt zusammengenommen werden. Der Prospekt sowie jeder Nachtrag können in elektronischer Form auf der Internetseite der Luxemburger Börse (www.bourse.lu). Kostenlose Kopien sind erhältlich unter Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Str. 1, 61352 Bad Homburg vor der Höhe, Deutschland. Eine Zusammenfassung der einzelnen Emission der Schuldverschreibungen ist diesen Endgültigen Bedingungen beigefügt.
Part I.: TERMS AND CONDITIONS
Teil I: EMISSIONSBEDINGUNGEN
The Terms and Conditions applicable to the Notes (the Conditions) and the English language translation thereof, are as set out below.
Die für die Schuldverschreibungen geltenden Emissionsbedingungen (die Bedingungen) sowie die englischsprachige Übersetzung sind wie nachfolgend aufgeführt.
TERMS AND CONDITIONS |
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EMISSIONSBEDINGUNGEN |
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§ 1 |
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§ 1 |
(CURRENCY, DENOMINATION, FORM) |
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(WÄHRUNG, STÜCKELUNG, FORM) |
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(1) Currency; Denomination. |
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(1) Währung; Stückelung. |
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This series of Notes (the Notes) of Fresenius Medical Care AG & Co. KGaA (also referred to as the Issuer) is being issued in euro (the Specified Currency) in the aggregate principal amount (subject to § 1(3)) of EUR 750,000,000 (in words: euro seven hundred and fifty million) in the denomination of EUR 1,000 (the Specified Denomination). |
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Diese Serie von Schuldverschreibungen (die Schuldverschreibungen) der Fresenius Medical Care AG & Co. KGaA (auch als die Emittentin bezeichnet) wird in Euro (die Festgelegte Währung) im Gesamtnennbetrag (vorbehaltlich § 1(3)) von EUR 750.000.000 (in Worten: Euro siebenhundertfünzig Millionen) in einer Stückelung von EUR 1.000 (die Festgelegte Stückelung) begeben. |
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(2) Form. |
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(2) Form. |
The Notes are being issued in bearer form. |
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Die Schuldverschreibungen lauten auf den Inhaber. |
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(3) Temporary Global Note Exchange. |
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(3) Vorläufige Globalurkunde Austausch. |
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(a) The Notes are initially represented by a temporary global note (the Temporary Global Note) without coupons. The Temporary Global Note will be exchangeable for Notes in Specified Denominations represented by a permanent global note (the Permanent Global Note and together with the Temporary Global Note, the Global Notes) without coupons. The details of such exchange shall be entered in the records of the ICSDs (as defined below). The Global Notes shall each be signed manually by authorized signatories of the Issuer and shall each be authenticated by or on behalf of the Fiscal Agent. Definitive Notes and interest coupons will not be issued. |
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(a) Die Schuldverschreibungen sind anfänglich durch eine vorläufige Globalurkunde (die vorläufige Globalurkunde) ohne Zinsscheine verbrieft. Die vorläufige Globalurkunde wird gegen Schuldverschreibungen in den Festgelegten Stückelungen, die durch eine Dauerglobalurkunde (die Dauerglobalurkunde und zusammen mit der vorläufigen Globalurkunde, die Globalurkunden) ohne Zinsscheine verbrieft sind, ausgetauscht. Die Einzelheiten eines solchen Austausches werden in die Aufzeichnungen der ICSDs (wie nachstehend definiert) aufgenommen. Die Globalurkunden tragen jeweils die eigenhändigen Unterschriften ordnungsgemäß bevollmächtigter Vertreter der Emittentin und sind jeweils von der Emissionsstelle oder in deren Namen mit einer Kontrollunterschrift versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben. |
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(b) The Temporary Global Note shall be exchanged for the Permanent Global Note on a date (the Exchange Date) not earlier than 40 days after the date of issue of the Notes. Such exchange shall only be made upon delivery of certifications to the effect that the beneficial owner or owners of the Notes is not a U.S. person (other than certain financial institutions or certain persons holding Notes through such financial institutions). Payment of interest on Notes represented by a Temporary Global Note will be made only after delivery of such certifications. A separate certification shall be required in respect of each such payment of interest. Any such certification received on or after the 40th |
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(b) Die vorläufige Globalurkunde wird an einem Tag (der Austauschtag) gegen die Dauerglobalurkunde ausgetauscht, der nicht weniger als 40 Tage nach dem Tag der Begebung der Schuldverschreibungen liegt. Ein solcher Austausch darf nur nach Vorlage von Bescheinigungen erfolgen, wonach der oder die wirtschaftlichen Eigentümer der Schuldverschreibungen keine U.S.-Personen sind (ausgenommen bestimmte Finanzinstitute oder bestimmte Personen, die Schuldverschreibungen über solche Finanzinstitute halten). Solange die Schuldverschreibungen durch eine vorläufige Globalurkunde verbrieft sind, werden Zinszahlungen erst nach Vorlage dieser Bescheinigungen |
day after the date of issue of the Notes will be treated as a request to exchange the Temporary Global Note pursuant to subparagraph (b) of this § 1(3). Any Notes delivered in exchange for the Temporary Global Note shall be delivered only outside of the United States (as defined in § 1(6)). |
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vorgenommen. Eine gesonderte Bescheinigung ist für jede solche Zinszahlung erforderlich. Jede Bescheinigung, die am oder nach dem 40. Tag nach dem Tag der Begebung der Schuldverschreibungen eingeht, wird als ein Ersuchen behandelt werden, diese vorläufige Globalurkunde gemäß Absatz (b) dieses § 1(3) auszutauschen. Schuldverschreibungen, die im Austausch für die vorläufige Globalurkunde geliefert werden, dürfen nur außerhalb der Vereinigten Staaten (wie in § 1(6) definiert) geliefert werden. |
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(4) Clearing System. |
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(4) Clearing System. |
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Each Global Note will be kept in custody by or on behalf of the Clearing System until all obligations of the Issuer under the Notes have been satisfied. Clearing System means each of the following: Clearstream Banking S.A. Luxembourg (CBL) and Euroclear Bank SA/NV Brussels as operator of the Euroclear System (Euroclear) and any successor in such capacity. International Central Securities Depositary or ICSD means each of CBL and Euroclear (together, the ICSDs). |
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Die Globalurkunde wird solange von einem oder im Namen eines Clearingsystems verwahrt, bis sämtliche Verbindlichkeiten der Emittentin aus den Schuldverschreibungen erfüllt sind. Clearingsystem bedeutet jeweils folgendes: Clearstream Banking S.A., Luxemburg (CBL) und Euroclear Bank SA/NV Brüssel, als Betreiberin des Euroclear Systems (Euroclear) sowie jeder Funktionsnachfolger. International Central Securities Depositary oder ICSD bezeichnet jeweils CBL und Euroclear (zusammen die ICSDs). |
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The Notes are issued in new global note (NGN) form and are kept in custody by a common safekeeper on behalf of both ICSDs. |
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Die Schuldverschreibungen werden in Form einer New Global Note (NGN) ausgegeben und von einer gemeinsamen Verwahrstelle im Namen beider ICSDs verwahrt. |
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The principal amount of Notes represented by the Global Note shall be the aggregate amount from time to time entered in the records of both ICSDs. The records of the ICSDs (which expression means the records that each ICSD holds for its customers which reflect the amount of such customers interest in the Notes) shall be conclusive evidence of the principal amount of Notes represented by the Global Note and, for these purposes, a statement issued by an ICSD stating the principal amount of Notes so represented at any time shall be conclusive evidence |
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Der Nennbetrag der durch die Globalurkunde verbrieften Schuldverschreibungen entspricht dem jeweils in den Registern beider ICSDs eingetragenen Gesamtbetrag. Die Register der ICSDs (unter denen man die Register versteht, die jeder ICSD für seine Kunden über den Betrag ihres Anteils an den Schuldverschreibungen führt) sind schlüssiger Nachweis über den Nennbetrag der durch die Globalurkunde verbrieften Schuldverschreibungen und eine zu diesen Zwecken von einem ICSD jeweils ausgestellte Bestätigung mit dem Nennbetrag der so verbrieften |
dence of the records of the records of the relevant ICSD at that time. |
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Schuldverschreibungen ist zu jedem Zeitpunkt ein schlüssiger Nachweis über den Inhalt des Registers des jeweiligen ICSD. |
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On any redemption or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by the Global Note the Issuer shall procure that details of any redemption, payment or purchase and cancellation (as the case may be) in respect of the Global Note shall be entered pro rata in the records of the ICSDs and, upon any such entry being made, the principal amount of the Notes recorded in the records of the ICSDs and represented by the Global Note shall be reduced by the aggregate principal amount of the Notes so redeemed or purchased and cancelled. |
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Bei Rückzahlung oder Zinszahlung bezüglich der durch die Globalurkunde verbrieften Schuldverschreibungen bzw. bei Kauf und Entwertung der durch die Globalurkunde verbrieften Schuldverschreibungen stellt die Emittentin sicher, dass die Einzelheiten über jede Rückzahlung und Zahlung bzw. Kauf und Löschung bezüglich der Globalurkunden pro rata in die Unterlagen der ICSDs eingetragen werden, und nach dieser Eintragung vom Nennbetrag der in die Register der ICSDs aufgenommenen und durch die Globalurkunde verbrieften Schuldschreibungen der Gesamtnennbetrag der zurückgezahlten bzw. gekauften und entwerteten Schuldverschreibungen abgezogen wird. |
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On an exchange of a portion only of the Notes represented by a Temporary Global Note, the Issuer shall procure that details of such exchange shall be entered pro rata in the records of the ICSDs. |
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Bei Austausch nur eines Teils von Schuldverschreibungen, die durch eine vorläufige Globalurkunde verbrieft sind, wird die Emittentin sicherstellen, dass die Einzelheiten dieses Austauschs pro rata in die Register der ICSDs aufgenommen werden. |
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(5) Holder of Notes. |
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(5) Gläubiger von Schuldverschreibungen. |
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Holder means any holder of a proportionate co-ownership or other beneficial interest or right in the Notes. |
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Gläubiger bedeutet jeder Inhaber eines Miteigentumsanteils oder anderen vergleichbaren Rechts an den Schuldverschreibungen. |
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(6) United States. |
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(6) Vereinigte Staaten. |
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For the purposes of these Terms and Conditions, United States means the United States of America (including the States thereof and the District of Columbia) and its territories and possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and Northern Mariana Islands). |
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Für die Zwecke dieser Emissionsbedingungen bezeichnet Vereinigte Staaten die Vereinigten Staaten von Amerika (einschließlich deren Bundesstaaten und des District of Columbia) sowie deren Territorien und Besitztümer (einschließlich Puerto Rico, der U.S. Virgin Islands, Guam, American Samoa, Wake Island und Northern Mariana Islands). |
§ 2 |
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§ 2 |
(STATUS, NEGATIVE PLEDGE AND GUARANTEE) |
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(STATUS, NEGATIVVERPFLICHTUNG UND GARANTIE) |
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(1) Status. |
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(1) Status. |
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The obligations under the Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other present or future unsecured and unsubordinated obligations of the Issuer, unless such obligations are accorded priority under mandatory provisions of statutory law. |
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Die Schuldverschreibungen begründen nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen gegenwärtigen und künftigen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende gesetzliche Bestimmungen ein Vorrang eingeräumt wird. |
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(2) Negative Pledge. |
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(2) Negativverpflichtung. |
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So long as any of the Notes remain outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of the Fiscal Agent, the Issuer undertakes (i) not to grant or permit to subsist any mortgage, land charge, lien or any other security right in rem (dingliches Sicherungsrecht) (the Security Interest) over any or all of its present or future assets, as security for any present or future Capital Market Indebtedness and (ii) to procure, to the extent legally possible, that none of its Subsidiaries will grant or permit to subsist any Security Interest over any or all of its present or future assets, as security for any present or future Capital Market Indebtedness, without at the same time having the Holders share equally and rateably in such Security Interest. This undertaking shall not apply with respect to any Security Interest which (i) is provided over any of the Issuers claims or claims of any of its Subsidiaries against any affiliated companies within the meaning of sections 15 et seqq. of the German Stock Corporation Act (Aktiengesetz) or any third party, which claims exist now or arise at any time in the future, as a result of the passing on of the proceeds from the sale by the issuer of any securities, provided that |
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Die Emittentin verpflichtet sich, solange Schuldverschreibungen ausstehen, jedoch nur bis zu dem Zeitpunkt, an dem alle Beträge an Kapital und Zinsen der Emissionsstelle zur Verfügung gestellt worden sind, (i) keine Grundpfandrechte, Pfandrechte oder sonstigen dinglichen Sicherungsrechte (ein Sicherungsrecht) an gegenwärtigen oder zukünftigen Teilen ihres Vermögens oder ihres Vermögens insgesamt zur Sicherung der gegenwärtigen oder zukünftigen Kapitalmarktverbindlichkeiten zu bestellen oder fortbestehen zu lassen, und (ii) soweit rechtlich möglich, zu veranlassen, dass keine ihrer Tochtergesellschaften Sicherungsrechte an gegenwärtigen oder zukünftigen Teilen ihres Vermögens oder ihres Vermögens insgesamt zur Sicherung der gegenwärtigen oder zukünftigen Kapitalmarktverbindlichkeiten bestellt oder fortbestehen lässt, ohne jeweils die Gläubiger zur gleichen Zeit auf gleiche Weise und anteilig an diesen Sicherungsrechten teilhaben zu lassen. Diese Verpflichtung gilt nicht in Bezug auf Sicherungsrechte, die (i) an gegenwärtigen oder zukünftigen Ansprüchen der Emittentin oder Ansprüchen einer ihrer Tochtergesellschaften gegen verbundene Unternehmen im Sinne der §§ 15 ff. Aktiengesetz oder gegen Dritte aufgrund |
any such security serves to secure obligations under such securities issued by the Issuer or by any of its Subsidiaries, (ii) is existing on assets at the time of the acquisition thereof by the Issuer or by any of its Subsidiaries or is existing over assets of a newly acquired company which becomes a member of the Fresenius Medical Care Group, (iii) is existing on the issue date of the Notes, (iv) secures a Capital Market Indebtedness existing at the time of acquisition that becomes an obligation of the Issuer or of any company within the Fresenius Medical Care Group as a consequence of such acquisition, provided that such Capital Market Indebtedness was not created in contemplation of such acquisition (v) is mandatory pursuant to applicable laws or required as a prerequisite for obtaining any governmental approvals, (vi) is provided in connection with any issuance of asset backed securities by the Issuer or by any of its Subsidiaries, (vii) is provided in respect of any issuance of asset backed securities made by a special purpose vehicle where the Issuer or any of its Subsidiaries is the originator of the underlying assets, (viii) is provided in connection with the renewal, extension or replacement of any security pursuant to foregoing (i) through (vii) and, (ix) secures Capital Market Indebtedness the principal amount of which (when aggregated with the principal amount of any other Capital Market Indebtedness which has the benefit of a security other than any permitted under the subparagraphs (i) to (viii) above)does not exceed EUR 100,000,000 (or its equivalent in other currencies at any time). |
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von einer Übertragung von Erlösen aus dem Verkauf von Wertpapieren bestehen, soweit diese Sicherheiten zur Sicherung von Verpflichtungen aus diesen durch die Emittentin oder durch eine ihrer Tochtergesellschaften ausgegebenen Wertpapieren dienen, (ii) zur Sicherung von Vermögensgegenständen bestellt sind, die bereits zum Zeitpunkt ihres Erwerbs durch die Emittentin oder durch eine ihrer Tochtergesellschaften bestanden, oder am Vermögen einer neu erworbenen Gesellschaft bestehen, die Mitglied des Fresenius Medical Care-Konzerns wird, (iii) zum Ausgabetag der Schuldverschreibungen bestehen, (iv) eine im Zeitpunkt einer Akquisition bestehende Kapitalmarktverbindlichkeit besichern, die infolge der Akquisition eine Verpflichtung der Emittentin oder einer Gesellschaft des Fresenius Medical Care-Konzerns wird, sofern diese Kapitalmarktverbindlichkeit nicht im Hinblick auf diese Akquisition begründet wurde, (v) aufgrund anwendbaren Rechts gesetzlich vorgeschriebene Sicherheiten sind oder solche, deren Bestehen eine Voraussetzung zur Erteilung einer behördlichen Genehmigung sind, (vi) im Zusammenhang mit durch die Emittentin oder durch eine ihrer Tochtergesellschaften begebenen Asset Backed Securities (ABS) stehen, (vii) im Zusammenhang mit durch Zweckgesellschaften begebenen Asset Backed Securities (ABS) stehen, bei denen die Emittentin oder eine ihrer Tochtergesellschaften der Originator der zugrundeliegenden Vermögensgegenstände ist, (viii) der Erneuerung, Verlängerung oder dem Austausch irgendeiner Sicherheit gemäß vorstehend (i) bis (vii) dienen und (ix) Kapitalmarktverbindlichkeiten besichern, deren Kapitalbetrag (bei Aufaddierung auf den Kapitalbetrag sonstiger Kapitalmarktverbindlichkeiten, für die andere Sicherheiten als die nach (i) bis (viii) zulässigen bestehen) EUR 100.000.000 (oder deren jeweiligen Gegenwert in anderen Währungen) nicht überschreitet. |
For purposes of these Terms and Conditions, Capital Market Indebtedness means any obligation for the payment of borrowed money which is evidenced by a certificate of indebtedness (Schuldscheindarlehen) or which is represented by any bond or debt security with an original maturity of more than one year which is, or is intended to be, or is capable of being listed or traded on a stock exchange or other recognized securities market. |
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Im Sinne dieser Emissionsbedingungen bezeichnet Kapitalmarktverbindlichkeit jede Verbindlichkeit zur Rückzahlung aufgenommener Geldbeträge, die durch Schuldscheindarlehen dokumentiert ist oder durch Schuldverschreibungen oder sonstige Wertpapiere mit einer ursprünglichen Laufzeit von mehr als einem Jahr, die an einer Börse oder an einem anderen anerkannten Wertpapiermarkt zugelassen oder gehandelt werden oder zugelassen oder gehandelt werden können, verbrieft, verkörpert oder dokumentiert ist. |
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Fresenius Medical Care Group means Fresenius Medical Care AG & Co. KGaA and its Subsidiaries on a consolidated basis. |
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Fresenius Medical Care-Konzern bezeichnet Fresenius Medical Care AG & Co. KGaA und ihre Tochtergesellschaften auf konsolidierter Basis. |
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Subsidiary means, with respect to any Person, any corporation, limited liability company, association, partnership or other business entity whose results of operations are consolidated in accordance with IFRS with those of: |
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Tochtergesellschaft bezeichnet in Bezug auf einen Rechtsträger, eine Kapitalgesellschaft, eine Gesellschaft mit Haftungsbeschränkung, eine Vereinigung, eine Personengesellschaft oder ein sonstiges Unternehmen, dessen Ergebnisse gemäß den IFRS mit den Ergebnissen folgender Personen konsolidiert werden: |
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(a) such Person; |
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(a) dieses Rechtsträgers; |
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(b) such Person and one or more Subsidiaries of such Person; or |
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(b) dieses Rechtsträgers und einer oder mehreren Tochtergesellschaften dieses Rechtsträgers; oder |
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(c) one or more Subsidiaries of such Person. |
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(c) einer oder mehrerer Tochtergesellschaften dieses Rechtsträgers. |
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IFRS refers to International Financial Reporting Standards of the International Accounting Standards Board, as adopted by the European Union. |
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IFRS bezeichnet die International Financial Reporting Standards des International Account Standards Board, wie sie von der Europäischen Union anerkannt werden. |
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(3) Guarantee. |
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(3) Garantie. |
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Fresenius Medical Care Holdings, Inc. (the Guarantor) has given an unconditional and irrevocable guarantee (the Guarantee) for the due and punctual payment of principal of, and interest on, and any other amounts payable under any Notes. The Guarantee |
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Fresenius Medical Care Holdings, Inc. (die Garantiegeberin) hat eine unbedingte und unwiderrufliche Garantie (die Garantie) für die ordnungsgemäße und pünktliche Zahlung von Kapital und Zinsen und allen anderen zu zahlenden Beträgen unter den Schuldverschreibungen |
constitutes a contract for the benefit of the Holders from time to time as third party beneficiaries in accordance with § 328 paragraph 1 of the German Civil Code (Bürgerliches Gesetzbuch)(1), giving rise to the right of each Holder to require performance of the Guarantee directly from the Guarantor and to enforce the Guarantee directly against the Guarantor. Copies of the Guarantee may be obtained free of charge at the specified office of the Fiscal Agent. |
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übernommen. Die Garantie stellt einen Vertrag zugunsten der Gläubiger als begünstigte Dritte im Sinne des § 328 Absatz 1 BGB dar, der jedem Gläubiger das Recht gibt, Erfüllung der in der Garantie übernommenen Verpflichtungen unmittelbar von der Garantiegeberin zu verlangen und diese Verpflichtungen unmittelbar gegen die Garantiegeberin durchzusetzen. Kopien der Garantie können kostenlos bei der bezeichneten Geschäftsstelle der Emissionsstelle bezogen werden. |
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(4) Release of Guarantee. |
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(4) Freigabe der Garantie. |
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Pursuant to its terms, the Guarantee (but not any payment obligation under the Guarantee which has already become due and payable) will be automatically and unconditionally released (and thereupon shall terminate and be discharged and be of no further force and effect) at any time when the Guarantor is no longer an obligor under the Amended 2012 Credit Agreement (as defined below), provided that, if under the Amended 2012 Credit Agreement, a new guarantee is granted, the Issuer will procure that substantially the same guarantee will also be granted in respect of the obligations under the Notes for the benefit of the Holders. |
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Gemäß ihren Bestimmungen wird die Garantie (aber keine Zahlungsverpflichtung im Rahmen der Garantie, die bereits fällig und zahlbar geworden ist) automatisch und unbedingt freigegeben (und gilt von diesem Zeitpunkt an als erloschen und unwirksam), sobald die Garantiegeberin nicht mehr Verpflichtete unter dem Geänderten Kreditvertrag 2012 ist, wobei, sollte unter dem Geänderten Kreditvertrag 2012 (wie nachstehend definiert) eine neue Garantie gestellt werden, die Emittentin sicherstellen wird, dass eine Garantie zu den im Wesentlichen gleichen Bedingungen auch in Ansehung der Schuldverschreibungen zugunsten der Gläubiger gestellt wird. |
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Amended 2012 Credit Agreement means the Credit Agreement dated as of October 30, 2012 among the Issuer and the Guarantor as borrowers and guarantors, Bank of America N.A. as administrative agent and the lenders named therein, (as amended, restated, modified, extended, renewed and/or supplemented or as refinanced or replaced from time to time). |
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Geänderter Kreditvertrag 2012 bedeutet der Kreditvertrag vom 30. Oktober 2012 zwischen der Emittentin, der Garantiegeberin als Kreditnehmer und Garanten, der Bank of America N.A., als Verwaltungsagent und den darin genannten Kreditgebern (in der jeweils gültigen Fassung, angepasst, modifiziert, erweitert, erneuert und/oder ergänzt oder refinanziert oder ersetzt). |
(1) An English language convenience translation of § 328 paragraph 1 BGB (German Civil Code) reads as follows: A contract may stipulate performance for the benefit of a third party, to the effect that the third party acquires the right directly to demand performance.
(5) In case of a release of the Guarantee, the Issuer will notify the Holders pursuant to § 12. |
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(5) Im Fall einer Freigabe der Garantie wird die Emittentin dies den Gläubigern gemäß § 12 mitteilen. |
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§ 3 |
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§ 3 |
(INTEREST) |
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(ZINSEN) |
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(1) Rate of Interest and Interest Payment Dates. |
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(1) Zinssatz und Zinszahlungstage. |
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The Notes shall bear interest on their principal amount at the rate of 1.500% per annum from (and including) May 29, 2020 to (but excluding) the Maturity Date (as defined in § 5(1)). Interest shall be payable in arrears on May 29 in each year (each such date, an Interest Payment Date). The first payment of interest shall be made on May 29, 2021. |
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Die Schuldverschreibungen werden bezogen auf ihren Nennbetrag verzinst, und zwar vom 29. Mai 2020 (einschließlich) bis zum Fälligkeitstag (wie in § 5(1) definiert) (ausschließlich) mit jährlich 1,500%. Die Zinsen sind nachträglich am 29. Mai eines jeden Jahres zahlbar (jeweils ein Zinszahlungstag). Die erste Zinszahlung erfolgt am 29. Mai 2021. |
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(2) Accrual of Interest. |
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(2) Auflaufende Zinsen. |
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The Notes shall cease to bear interest from the expiry of the day preceding the day on which they are due for redemption. If the Issuer for any reason fails to redeem the Notes when due, interest shall continue to accrue at the default rate of interest established by statutory law(2) on the outstanding aggregate principal amount of the Notes from (and including) the due date to (but excluding) the day on which such redemption payment is made to the Holders. |
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Der Zinslauf der Schuldverschreibungen endet mit Ablauf des Tages, der dem Tag vorangeht, an dem sie zur Rückzahlung fällig werden. Falls die Emittentin die Schuldverschreibungen bei Fälligkeit aus irgendeinem Grund nicht zurückzahlt, wird der ausstehende Gesamtnennbetrag der Schuldverschreibungen von dem Tag der Fälligkeit (einschließlich) bis zum Tag der vollständigen Rückzahlung an die Gläubiger (ausschließlich) mit dem gesetzlich bestimmten Verzugszins(3) verzinst. |
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(3) Calculation of Interest for Periods other than a full Year. |
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(3) Berechnung der Zinsen für Zeiträume, die nicht einem vollen Jahr entsprechen. |
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If interest is to be calculated for a period other than a full year, it shall be calculated on the basis of the Day Count Fraction (as defined below). The number of Interest |
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Sofern Zinsen für einen Zeitraum, der nicht einem vollen Jahr entspricht, zu berechnen sind, erfolgt die Berechnung auf der Grundlage des Zinstagequotienten (wie nachfolgend |
(2) The default rate of interest established by statutory law is five percentage points above the basis rate of interest published by Deutsche Bundesbank from time to time, §§ 288 paragraph 1, 247 paragraph 1 of the German Civil Code.
(3) Der gesetzliche Verzugszinssatz beträgt für das Jahr fünf Prozentpunkte über dem von der Deutsche Bundesbank von Zeit zu Zeit veröffentlichten Basiszinssatz, §§ 288 Absatz 1, 247 Absatz 1 BGB.
Payment Dates per calendar year (each a Determination Date) is one. |
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definiert). Die Anzahl der Zinszahlungstage im Kalenderjahr (jeweils ein Feststellungstermin) beträgt Eins. |
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(4) Day Count Fraction. |
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(4) Zinstagequotient. |
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Day Count Fraction means with regard to the calculation of the amount of interest on the Notes for any period of time (the Calculation Period): |
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Zinstagequotient bezeichnet im Hinblick auf die Berechnung von Zinsbeträgen auf die Schuldverschreibungen für einen beliebigen Zeitraum (der Zinsberechnungszeitraum): |
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(a) if the Calculation Period (from and including the first day of such period but excluding the last) is equal to or shorter than the Determination Period during which the Calculation Period ends, the number of days in such Calculation Period (from and including the first day of such period but excluding the last) divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) that would occur in one calendar year; or |
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(a) wenn der Zinsberechnungszeitraum (einschließlich des ersten aber ausschließlich des letzten Tages dieser Periode) kürzer ist als die Feststellungsperiode, in die das Ende des Zinsberechnungszeitraumes fällt oder ihr entspricht, die Anzahl der Tage in dem betreffenden Zinsberechnungszeitraum (einschließlich des ersten aber ausschließlich des letzten Tages dieser Periode) geteilt durch das Produkt (1) der Anzahl der Tage in der Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) angegeben) in einem Kalenderjahr; oder |
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(b) if the Calculation Period is longer than the Determination Period during which the Calculation Period ends, the sum of: (A) the number of days in such Calculation Period falling in the Determination Period in which the Calculation Period begins divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) and (B) the number of days in such Calculation Period falling in the next Determination Period divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) that would occur in one calendar year. |
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(b) wenn der Zinsberechnungszeitraum länger ist als die Feststellungsperiode, in die das Ende des Zinsberechnungszeitraumes fällt, die Summe aus (A) der Anzahl der Tage in dem Zinsberechnungszeitraum, die in die Feststellungsperiode fallen, in welcher der Zinsberechnungszeitraum beginnt, geteilt durch das Produkt aus (1) der Anzahl der Tage in dieser Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) angegeben) in einem Kalenderjahr und (B) der Anzahl der Tage in dem Zinsberechnungszeitraum, die in die nächste Feststellungsperiode fallen, geteilt durch das Produkt aus (1) der Anzahl der Tage in dieser Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) |
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angegeben) in einem Kalenderjahr. |
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Determination Period means the period from (and including) a Determination Date to, (but excluding) the next Determination Date. |
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Feststellungsperiode ist die Periode ab einem Feststellungstermin (einschließlich desselben) bis zum nächsten Feststellungstermin (ausschließlich desselben). |
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§ 4 |
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§ 4 |
(PAYMENTS) |
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(ZAHLUNGEN) |
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(1) Payment of Principal and Payment of Interest. |
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(1) Zahlungen auf Kapital und Zahlung von Zinsen. |
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(a) Payment of principal in respect of the Notes shall be made, subject to subparagraph (2) below, to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System. |
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(a) Zahlungen von Kapital auf die Schuldverschreibungen erfolgen nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems. |
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(b) Payment of Interest on the Notes shall be made, subject to subparagraph (2), to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System. |
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(b) Die Zahlung von Zinsen auf die Schuldverschreibungen erfolgt nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems. |
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Payment of interest on Notes represented by the Temporary Global Note shall be made, subject to subparagraph (2), to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System, upon due certification as provided in § 1(3)(b). |
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Die Zahlung von Zinsen auf Schuldverschreibungen, die durch die vorläufige Globalurkunde verbrieft sind, erfolgt nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems, und zwar nach ordnungsgemäßer Bescheinigung gemäß § 1(3)(b). |
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(2) Manner of Payment. |
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(2) Zahlungsweise. |
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Subject to applicable fiscal and other laws and regulations, payments of amounts due in respect of the Notes shall be made in the Specified Currency. |
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Vorbehaltlich geltender steuerlicher und sonstiger gesetzlicher Regelungen und Vorschriften erfolgen zu leistende Zahlungen auf die Schuldverschreibungen in der Festgelegten Währung. |
(3) Discharge. |
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(3) Erfüllung. |
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The Issuer or, as the case may be, the Guarantor shall be discharged by payment to, or to the order of, the Clearing System. |
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Die Emittentin bzw. die Garantiegeberin wird durch Leistung der Zahlung an das Clearingsystem oder dessen Order von ihrer Zahlungspflicht befreit. |
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(4) Payment Business Day. |
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(4) Zahltag. |
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If the date for payment of any amount in respect of any Note is not a Payment Business Day then the Holder shall not be entitled to payment until the next such day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay. |
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Fällt der Fälligkeitstag einer Zahlung in Bezug auf eine Schuldverschreibung auf einen Tag, der kein Zahltag ist, dann hat der Gläubiger keinen Anspruch auf Zahlung vor dem nächsten Zahltag am jeweiligen Geschäftsort. Der Gläubiger ist nicht berechtigt, weitere Zinsen oder sonstige Zahlungen aufgrund dieser Verspätung zu verlangen. |
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For these purposes, Payment Business Day means any day which is |
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Für diese Zwecke bezeichnet Zahltag einen Tag, |
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a day (other than a Saturday or a Sunday) on which the Clearing System as well as all relevant parts of TARGET2 are operational to forward the relevant payment. |
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der ein Tag (außer einem Samstag oder Sonntag) ist, an dem das Clearingsystem sowie alle betroffenen Bereiche des TARGET2 betriebsbereit sind, um die betreffenden Zahlungen weiterzuleiten. |
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(5) References to Principal and Interest. |
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(5) Bezugnahmen auf Kapital und Zinsen. |
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References in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as applicable: the Call Redemption Amount of the Notes; and any premium and any other amounts which may be payable under or in respect of the Notes. References in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any Additional Amounts which may be payable under § 7. |
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Bezugnahmen in diesen Emissionsbedingungen auf Kapital der Schuldverschreibungen schließen, soweit anwendbar, die folgenden Beträge ein: den Wahl-Rückzahlungsbetrag (Call) der Schuldverschreibungen; sowie jeden Aufschlag sowie sonstige auf oder in Bezug auf die Schuldverschreibungen zahlbaren Beträge. Bezugnahmen in diesen Emissionsbedingungen auf Zinsen auf die Schuldverschreibungen sollen, soweit anwendbar, sämtliche gemäß § 7 zahlbaren Zusätzlichen Beträge einschließen. |
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(6) Deposit of Principal and Interest. |
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(6) Hinterlegung von Kapital und Zinsen. |
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The Issuer or, as the case may be, the Guarantor may deposit with the local court (Amtsgericht) in Frankfurt/Main principal or interest not claimed by Holders within |
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Die Emittentin bzw. die Garantiegeberin ist berechtigt, beim Amtsgericht Frankfurt am Main Zins- oder Kapitalbeträge zu hinterlegen, die von den Gläubigern nicht innerhalb |
twelve months after the Maturity Date, even though such Holders may not be in default of acceptance of payment. If and to the extent that the deposit is effected and the right of withdrawal is waived, the respective claims of such Holders against the Issuer shall cease. |
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von zwölf Monaten nach dem Fälligkeitstag beansprucht worden sind, auch wenn die Gläubiger sich nicht in Annahmeverzug befinden. Soweit eine solche Hinterlegung erfolgt, und auf das Recht der Rücknahme verzichtet wird, erlöschen die diesbezüglichen Ansprüche der Gläubiger gegen die Emittentin. |
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§ 5 |
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§ 5 |
(REDEMPTION) |
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(RÜCKZAHLUNG) |
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(1) Final Redemption. |
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(1) Rückzahlung bei Endfälligkeit. |
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Unless previously redeemed in whole or in part or purchased and cancelled, the Notes shall be redeemed at principal amount on May 29, 2030 (the Maturity Date). |
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Soweit nicht zuvor bereits ganz oder teilweise zurückgezahlt oder angekauft und entwertet, werden die Schuldverschreibungen zu ihrem Nennbetrag am 29. Mai 2030 (der Fälligkeitstag) zurückgezahlt. |
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(2) Early Redemption for Reasons of Taxation. |
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(2) Vorzeitige Rückzahlung aus steuerlichen Gründen. |
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If as a result of any change in, or amendment to, the laws, treaties, regulations or official position of any Relevant Taxing Jurisdiction (as defined in § 7 herein) or any political subdivision or taxing authority thereto or therein affecting taxation or the obligation to pay duties of any kind, or any change in, or amendment to, an official interpretation or application of such laws or regulations, which amendment or change is effective on or after the date on which the last tranche of this series of Notes was issued, the Issuer or the Guarantor, as the case may be, is required to pay Additional Amounts (as defined in § 7 herein) on the next succeeding Interest Payment Date (as defined in § 3(1)), and this obligation cannot be avoided by the use of reasonable measures available to the Issuer or the Guarantor, as the case may be, the Notes may be redeemed, in whole but not in part, at the option of the Issuer, upon not more than 60 days nor less than 30 days prior notice of redemption given to the Fiscal Agent and, in accordance with § 12 to the Holders, at their principal amount, together with interest (if any) accrued to the |
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Die Schuldverschreibungen können insgesamt, jedoch nicht teilweise, nach Wahl der Emittentin mit einer Kündigungsfrist von nicht mehr als 60 und nicht weniger als 30 Tagen durch Erklärung gegenüber der Emissionsstelle und Benachrichtigung gemäß § 12 gegenüber den Gläubigern vorzeitig gekündigt und zu ihrem Nennbetrag zuzüglich etwaiger bis zum für die Rückzahlung festgesetzten Tag (ausschließlich) aufgelaufener Zinsen zurückgezahlt werden, falls die Emittentin oder die Garantiegeberin als Folge einer Änderung oder Ergänzung der Steueroder Abgabengesetze, -abkommen, -vorschriften und offiziellen Verlautbarungen einer Relevanten Steuerjurisdiktion (wie in § 7 dieser Bedingungen definiert) oder deren politischen Untergliederungen oder Steuerbehörden oder als Folge einer Änderung oder Ergänzung der Anwendung oder der offiziellen Auslegung dieser Gesetze und Vorschriften (vorausgesetzt, diese Änderung oder Ergänzung wird am oder nach dem Tag, an dem die letzte Tranche dieser Serie von Schuldverschreibungen begeben wird, wirksam) am nächstfolgenden Zinszahlungstag |
date fixed for redemption (excluding). |
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(wie in § 3(1) definiert) zur Zahlung von Zusätzlichen Beträgen (wie in § 7 dieser Bedingungen definiert) verpflichtet sein wird und diese Verpflichtung nicht durch das Ergreifen zumutbarer, der Emittentin oder der Garantiegeberin zur Verfügung stehender Maßnahmen vermieden werden kann. |
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However, no such notice of redemption may be given (i) earlier than 90 days prior to the earliest date on which the Issuer or the Guarantor would be obligated to pay such Additional Amounts were a payment in respect of the Notes then due, or (ii) if at the time such notice is given, such obligation to pay such Additional Amounts does not remain in effect. |
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Eine solche Kündigung darf allerdings nicht (i) früher als 90 Tage vor dem frühestmöglichen Termin erfolgen, an dem die Emittentin oder die Garantiegeberin verpflichtet wäre, solche Zusätzlichen Beträge zu zahlen, falls eine Zahlung auf die Schuldverschreibungen dann fällig sein würde, oder (ii) erfolgen, wenn zu dem Zeitpunkt, zu dem die Kündigung erklärt wird, die Verpflichtung zur Zahlung von Zusätzlichen Beträgen nicht mehr wirksam ist. |
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Any such notice shall be given in accordance with § 12. It shall be irrevocable, must specify the date fixed for redemption and must set forth a statement in summary form of the facts constituting the basis for the right of the Issuer so to redeem. |
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Eine solche Kündigung ist gemäß § 12 bekanntzumachen. Sie ist unwiderruflich, muss den für die Rückzahlung festgelegten Termin nennen und eine zusammenfassende Erklärung enthalten, welche die das Rückzahlungsrecht der Emittentin begründenden Umständen darlegt. |
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Before the publication of any notice of redemption pursuant to this subparagraph, the Issuer shall deliver to the Fiscal Agent a certificate signed by a member of the managing board of the general partner of the Issuer stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion of independent legal counsel or tax advisers of recognized standing to the effect that the Issuer or the Guarantor, as the case may be, has or will become obliged to pay such Additional Amounts as a result of such change or amendment. |
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Vor Bekanntgabe einer Mitteilung über eine Rückzahlung gemäß diesen Bestimmungen hat die Emittentin der Emissionsstelle eine von einem Mitglied des Vorstands des Komplementärs der Emittentin unterzeichnete Bescheinigung zukommen zu lassen, der zufolge die Emittentin berechtigt ist, eine entsprechende Rückzahlung zu leisten, und in der nachvollziehbar dargelegt ist, dass die Bedingungen für das Recht der Emittentin zur Rückzahlung gemäß diesen Bestimmungen erfüllt sind; zusätzlich hat die Emittentin ein von unabhängigen und anerkannten Rechts- oder Steuerberatern erstelltes Gutachten vorzulegen, demzufolge die Emittentin oder die Garantiegeberin in Folge einer entsprechenden Änderung oder Ergänzung zur Zahlung Zusätzlicher Beträge verpflichtet ist oder sein wird. |
(3) |
Early Redemption at the Option of the Issuer for Reasons of Minimal Outstanding Principal Amount. |
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Vorzeitige Rückzahlung nach Wahl der Emittentin bei geringfügig ausstehendem Nennbetrag. |
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If 80% or more in principal amount of the Notes then outstanding have been redeemed or purchased by the Issuer or any Subsidiary of Fresenius Medical Care AG & Co. KGaA, the Issuer may, on not less than 30 or more than 60 days notice to the Holders redeem, at its option, the remaining Notes as a whole at their principal amount, together with interest (if any) accrued to the date fixed for redemption (excluding). |
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Wenn 80% oder mehr des Nennbetrags der dann ausstehenden Schuldverschreibungen durch die Emittentin oder eine Tochtergesellschaft der Fresenius Medical Care AG & Co. KGaA zurückgezahlt oder zurückerworben wurde, ist die Emittentin berechtigt, nach ihrer Wahl alle ausstehenden Schuldverschreibungen mit einer Frist von mindestens 30 und höchstens 60 Tagen gegenüber den Gläubigern zu kündigen und zum Nennbetrag zuzüglich etwaiger bis zum Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zurück zu zahlen. |
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(4) |
Early Redemption at the Option of the Holders upon a Change of Control. |
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Vorzeitige Rückzahlung nach Wahl der Gläubiger bei Vorliegen eines Kontrollwechsels. |
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Each Holder of the Notes, upon the occurrence of a Change of Control Triggering Event, will have the right (unless, prior to the giving of the Put Event Notice referred to below, the Issuer gives notice to redeem the Notes in accordance with § 5(2), i.e. for taxation reasons) to require that the Issuer repurchases such Holders Notes on the Optional Redemption Date at a purchase price in cash equal to 101% of the principal amount together with interest (if any) accrued to the Optional Redemption Date (excluding). |
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Falls ein Kontrollwechselereignis stattfindet, hat jeder Gläubiger das Recht (soweit die Emittentin nicht bereits vor Abgabe der Vorzeitigen Rückkaufsgrunderklärung (wie nachstehend definiert) die Rückzahlung gemäß § 5(2), d.h. aus steuerlichen Gründen, erklärt hat) von der Emittentin am Stichtag den Rückkauf seiner Schuldverschreibungen zu einem Kaufpreis von 101% des Nennbetrags zuzüglich etwaiger bis zum Stichtag (ausschließlich) aufgelaufener Zinsen zu verlangen. |
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In this context the following provisions apply: |
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In diesem Zusammenhang finden die folgenden Vorschriften Anwendung: |
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Change of Control Triggering Event means the occurrence of a Change of Control together with a Ratings Decline. |
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Ein Kontrollwechselereignis liegt vor, wenn ein Kontrollwechsel zusammen mit einer Ratingherabstufung eintreten. |
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Rating Agency means (1) S&P Global Inc. and its subsidiaries or successors (S&P), (2) Moodys Investors Service Inc. and its subsidiaries or successors (Moodys), and (3) Fitch Ratings Ltd. and its subsididaries or successors (Fitch), or (4) if S&P, Moodys or Fitch, or all three shall not make rating of Fresenius Medical Care AG & Co. KGaA |
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Ratingagentur bezeichnet (1) S&P Global Inc. sowie Tochter- oder Nachfolgergesellschaften (S&P), (2) Moodys Investors Service Inc. sowie deren Tochter- oder Nachfolgergesellschaften (Moodys), (3) Fitch Ratings Limited oder deren entsprechenden Nachfolger sowie deren Tochter- oder Nachfolgergesellschaften (Fitch), oder (4) falls |
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publicly available, a European-wide reputable securities rating agency or agencies, as the case may be, selected by Fresenius Medical Care AG & Co. KGaA, which shall be substituted for S&P, Moodys or Fitch or all three, as the case may be. |
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S&P, Moodys oder Fitch oder alle drei kein Rating für Fresenius Medical Care AG & Co. KGaA öffentlich zur Verfügung stellen, eine Ratingagentur oder Ratingagenturen mit europaweitem Ansehen, die von Fresenius Medical Care AG & Co. KGaA ausgewählt wird und S&P, Moodys oder Fitch oder alle diese Agenturen ersetzt. |
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Ratings Decline means that if (a), at the time of the occurrence of a Change of Control, Fresenius Medical Care AG & Co. KGaAs (i) has been, rated Investment Grade by at least two Rating Agencies and such rating is, within 120 days from such time, either downgraded to a non-investment grade rating or withdrawn by at least two Rating Agencies and is not within such 120-day period subsequently (in the case of a downgrade) upgraded to Investment Grade by two of the three Rating Agencies, or (in the case of withdrawal) replaced by an Investment Grade rating from any other Rating Agency or Rating Agencies; or (ii) rated below Investment Grade and such rating from any Rating Agency is, within 120 days from such time, downgraded by one or more gradations (including gradations within Rating Categories as well as between Rating Categories) and is not within such 120-day period subsequently upgraded to its earlier credit rating or better by such Rating Agency, provided that if at the time of the occurrence of a Change of Control Fresenius Medical Care AG & Co. KGaA carries an Investment Grade rating of only one Rating Agency, it shall be sufficient if the requirements under subparagraph (i) are met with respect to such Rating Agency; and (b) in making any of the decisions referred to above, the relevant Rating Agency announces publicly or confirms in writing to Fresenius Medical Care AG & Co. KGaA that its decision resulted, in whole or in part, from the occurrence of the Change of Control. |
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Eine Ratingherabstufung liegt vor, falls (a) Fresenius Medical Care AG & Co. KGaA bei Eintritt des Kontrollwechsels (i) von mindestens zwei Ratingagenturen mit Investment Grade bewertet ist und diese Ratings von mindestens zwei Ratingagenturen innerhalb von 120 Tagen nach dem Kontrollwechsel zu einem Non-Investment-Grade-Rating herabgestuft oder das Rating zurückgezogen wurde und nicht innerhalb dieser 120-Tagesperiode anschließend (im Falle einer Herabstufung) durch mindestens zwei Ratingagenturen wieder auf ein Investment Grade Rating heraufgestuft oder (im Falle eines Zurückziehens) durch das Investment Grade Rating einer anderen Ratingagentur oder Ratingagenturen ersetzt wurde; oder (ii) unterhalb von Investment Grade bewertet ist und dieses Rating von einer Ratingagentur innerhalb von 120-Tagen nach dem Kontrollwechsel um eine oder mehrere Stufen (einschließlich Untergliederungen innerhalb von sowie zwischen Ratingkategorien) herabgestuft und nicht innerhalb dieser 120-Tagesperiode anschließend wieder auf das ursprüngliche oder ein besseres Rating durch diese Ratingagentur heraufgestuft wurde, wobei, falls Fresenius Medical Care AG & Co. KGaA zum Eintritt des Kontrollwechsels über ein Investment-Grade-Rating von nur einer Ratingagentur verfügt, es bereits ausreichend ist, wenn die Voraussetzungen in Unterabsatz (i) im Hinblick auf diese Ratingagentur erfüllt sind; und (b) im Zusammenhang mit einer der oben genannten Entscheidungen die betreffende Ratingagentur öffentlich bekannt macht oder gegenüber Fresenius Medical Care AG & Co. KGaA schriftlich bestätigt, dass ihre Entscheidung ganz oder teilweise |
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without the prior consent of the Issuer. |
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Kein in dieser Form ausgeübtes Recht kann ohne vorherige Zustimmung der Emittentin widerrufen oder zurückgezogen werden. |
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The Issuer will comply with the requirements of any applicable securities laws or regulations in connection with an early redemption of Notes at the option of the Holders upon a Change of Control pursuant to this § 5(4). To the extent that the provisions of any securities laws or regulations or applicable stock exchange listing rules conflict with the provisions of this § 5(4), the Issuer will comply with the applicable securities laws, regulations and listing rules and will not be deemed to have breached its obligations under this § 5(4) by virtue thereof. |
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Die Emittentin wird die Anforderungen der anwendbaren Wertpapiergesetze oder -vorschriften im Zusammenhang mit einer vorzeitigen Rückzahlung von Schuldverschreibungen nach Wahl der Inhaber bei einem Kontrollwechsel gemäß diesem § 5 Abs. 4 erfüllen. Soweit die Bestimmungen eines Wertpapiergesetzes oder -verordnung oder eines anwendbaren Börsenzulassungsregelwerks im Widerspruch zu den Bestimmungen dieses § 5(4) stehen, wird die Emittentin die anwendbaren Wertpapiergesetze, -verordnungen und -regelwerke einhalten und dies wird nicht als Verletzung ihrer Pflichten aus diesem § 5(4) angesehen werden. |
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(5) |
Early Redemption at the Option of the Issuer. |
(5) |
Vorzeitige Rückzahlung nach Wahl der Emittentin. |
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(a) |
The Issuer may, upon notice given in accordance with clause (b), redeem all or some only of the Notes within the Call Redemption Period(s) at the Call Redemption Amount(s) set forth below together with accrued interest, if any, to (but excluding) the relevant redemption date. |
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(a) |
Die Emittentin kann, nachdem sie gemäß Absatz (b) gekündigt hat, die Schuldverschreibungen insgesamt oder teilweise innerhalb des/der WahlRückzahlungszeitraums/-räume (Call) zum/zu den Wahl-Rückzahlungsbetrag/-beträgen (Call), wie nachfolgend angegeben, nebst etwaigen bis zum maßgeblichen Rückzahlungstag (ausschließlich) aufgelaufenen Zinsen zurückzahlen. |
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Call Redemption |
Call Redemption |
Wahl- |
Wahl- |
Period(s) |
Amount(s) |
Rückzahlungszeit- |
Rückzahlungsbe- |
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raum/räume |
trag/beträge |
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(Call) |
(Call) |
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February 28, 2030 to |
100 percent of the |
28. Februar 2030 |
100% des |
May 28, 2030 |
principal amount |
bis |
Nennbetrags |
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28. Mai 2030 |
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The initial fiscal agent (the Fiscal Agent) and the initial paying agent (the Paying Agent) and its initial specified office shall be: |
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Die anfänglich bestellte Emissionsstelle (die Emissionsstelle) und die anfänglich bestellte Zahlstelle (die Zahlstelle) und ihre bezeichnete Geschäftsstelle lautet wie folgt: |
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Deutsche Bank Aktiengesellschaft |
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Deutsche Bank Aktiengesellschaft |
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Trust & Security Services |
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Trust & Security Services |
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Operations Frankfurt |
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Operations Frankfurt |
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Taunusanlage 12 |
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Taunusanlage 12 |
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60325 Frankfurt am Main |
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60325 Frankfurt am Main |
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Federal Republic of Germany |
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Deutschland |
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The Fiscal Agent and the Paying Agent reserve the right at any time to change their respective specified offices to some other specified office in the same country. |
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Die Emissionsstelle und die Zahlstelle behalten sich das Recht vor, jederzeit ihre jeweiligen bezeichneten Geschäftsstellen durch eine andere bezeichnete Geschäftsstelle in demselben Land zu ersetzen. |
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(2) |
Variation or Termination of Appointment. |
(2) |
Änderung der Bestellung oder Abberufung. |
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The Issuer reserves the right at any time to vary or terminate the appointment of the Fiscal Agent or any Paying Agent and to appoint another Fiscal Agent or additional or other Paying Agents. The Issuer shall at all times maintain (i) a Fiscal Agent, (ii) so long as the Notes are listed on the Luxembourg Stock Exchange, a Paying Agent (which may be the Fiscal Agent) with a specified office in Luxembourg and/or in such other place as may be required by the rules of such stock exchange and (iii) a Paying Agent in an EU Member State, if possible, that will not be obliged to withhold or deduct tax in connection with any payment made in relation to the Notes unless the Paying Agent would be so obliged in each other EU Member State if it were located there. Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency, when it shall be of immediate effect) after not less than 30 nor more than 45 days prior notice thereof shall have been given to the Holders in accordance with § 12. |
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Die Emittentin behält sich das Recht vor, jederzeit die Bestellung der Emissionsstelle oder einer Zahlstelle zu ändern oder zu beenden und eine andere Emissionsstelle oder zusätzliche oder andere Zahlstellen zu bestellen. Die Emittentin wird zu jedem Zeitpunkt (i) eine Emissionsstelle unterhalten, (ii) solange die Schuldverschreibungen an der Luxemburger Börse notiert sind, eine Zahlstelle (die die Emissionsstelle sein kann) mit bezeichneter Geschäftsstelle in Luxemburg und/oder an solchen anderen Orten unterhalten, die die Regeln dieser Börse verlangen und (iii) eine Zahlstelle in einem Mitgliedsstaat der Europäischen Union, sofern dies möglich ist, unterhalten, die nicht zum Einbehalt oder Abzug von Quellensteuern oder sonstigen Abzügen verpflichtet ist, es sei denn, dass eine solche Einbehalts- oder Abzugspflicht auch in allen anderen Mitgliedsstaaten der Europäischen Union bestünde. Eine Änderung, Abberufung, Bestellung oder ein sonstiger Wechsel wird nur wirksam (außer im Insolvenzfall, in dem eine solche Änderung sofort wirksam wird), sofern die Gläubiger hierüber gemäß § 12 vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen |
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(3) |
Agent of the Issuer. |
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Erfüllungsgehilfe(n) der Emittentin. |
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The Fiscal Agent and the Paying Agent act solely as the agents of the Issuer and do not assume any obligations towards or relationship of agency or trust for any Holder. |
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Die Emissionsstelle und die Zahlstelle handeln ausschließlich als Erfüllungsgehilfen der Emittentin und übernehmen keinerlei Verpflichtungen gegenüber den Gläubigern und es wird kein Auftrags- oder Treuhandverhältnis zwischen ihnen und den Gläubigern begründet. |
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§ 7 |
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§ 7 |
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(TAXATION) |
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(STEUERN) |
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All payments of principal and interest made by the Issuer in respect of the Notes to the Holders shall be made free and clear of, and without withholding or deduction for, any present or future taxes or duties of whatever nature imposed or levied by way of deduction or withholding by or on behalf of (1) the Federal Republic of Germany or any authority therein or thereof having power to tax, (2) any jurisdiction from or through which payment on the Notes or the Guarantee is made, or any political subdivision or governmental authority thereof or therein having the power to tax and/or (3) any other jurisdiction in which the payor is organized or otherwise considered to be resident or doing business for tax purposes, or any political subdivision or governmental authority thereof or therein having the power to tax (each a Relevant Taxing Jurisdiction), unless such deduction or withholding is required by law. In that event the Issuer shall pay such additional amounts (the Additional Amounts) as shall result in receipt by the Holders of such amounts as would have been received by them had no such withholding or deduction been required, except that no Additional Amounts shall be payable with respect to:
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Alle in Bezug auf die Schuldverschreibungen von der Emittentin an die Gläubiger zahlbaren Kapitaloder Zinsbeträge werden ohne Einbehalt oder Abzug an der Quelle für oder wegen gegenwärtiger oder zukünftiger Steuern oder Abgaben gleich welcher Art gezahlt, die von oder im Namen (1) der Bundesrepublik Deutschland oder einer dort zur Steuererhebung ermächtigten Behörde, (2) einer Rechtsordnung, aus der bzw. über die eine Zahlung auf die Schuldverschreibungen oder die Garantie geleistet wird, oder einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde, und/oder (3) einer anderen Rechtsordnung, in der die zahlende Partei errichtet ist oder anderweitig als gebietsansässig gilt oder im steuerlichen Sinn geschäftlich tätig ist, oder einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde (jeweils eine Relevante Steuerjurisdiktion) im Wege des Abzugs oder Einbehalts auferlegt oder erhoben werden, es sei denn, ein solcher Abzug oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin diejenigen zusätzlichen Beträge (Zusätzliche Beträge) zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen an Kapital und Zinsen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Gläubigern erhalten worden wären; jedoch sind solche Zusätzlichen Beträge nicht zu zahlen in Bezug auf: |
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(a) |
taxes or duties which are payable by any Person acting as custodian bank |
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(a) |
Steuern oder Abgaben, die von einer als Depotbank oder Inkassobeauftragter |
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or collecting agent on behalf of a Holder, or otherwise in any manner which does not constitute a deduction or withholding by the Issuer or the Guarantor, as applicable, from payments of principal or interest made by it; or |
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eines Gläubigers handelnden Person oder auf eine sonstige Weise zu entrichten sind, die keinen Abzug oder Einbehalt von Zahlungen von Kapital oder Zinsen durch die Emittentin bzw. die Garantiegeberin darstellen; oder |
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(b) |
payments that would not have been so imposed but for the existence of any present or former connection between such Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or a person having a controlling power over, such Holder) and any Relevant Taxing Jurisdiction including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or person having such a controlling power) being or having been a citizen or resident or treated as a resident of, being or having been engaged in a trade or business in, or having or having had a permanent establishment in, a Relevant Taxing Jurisdiction other than any connections arising solely from a Holder acquiring, holding or disposing of, receiving any payment under or with respect to or enforcing a Note or any Guarantee; or |
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(b) |
Zahlungen, die nicht erhoben worden wären, wenn nicht (i) eine gegenwärtige oder ehemalige Beziehung zwischen dem betreffenden Gläubiger (oder einem Treuhänder, Treugeber, Begünstigten, Mitglied oder Gesellschafter dieses Gläubigers oder einer Person, die beherrschenden Einfluss auf diesen Gläubiger hat) und einer Relevanten Steuerjurisdiktion bestehen würde, unter anderem in der Form, dass der betreffende Gläubiger (bzw. Treuhänder, Treugeber, Begünstigte, Mitglied, Gesellschafter oder die Person, die beherrschenden Einfluss hat) Staatsbürger einer Relevanten Steuerjurisdiktion ist oder war oder dort ansässig ist oder war oder als dort ansässig gilt oder galt oder dort ein Gewerbe oder eine Geschäftstätigkeit betreibt oder betrieben hat oder dort eine Betriebsstätte unterhält oder unterhalten hat, mit Ausnahme von Beziehungen, die allein dadurch entstehen, dass ein Gläubiger eine Schuldverschreibung oder die Garantie erwirbt, hält oder veräußert bzw. eine Zahlung darunter oder in Bezug auf diese erhält oder Ansprüche darauf geltend macht; oder |
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(c) |
payments to, or to a third party on behalf of, a Holder where no such withholding or deduction would have been required to be made if the Notes were credited at the time of payment to a securities deposit account with a bank, financial services institution, securities trading business or securities trading bank, in each |
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(c) |
Zahlungen an den Gläubiger oder an einen Dritten für den Gläubiger, falls kein Einbehalt oder Abzug hätte erfolgen müssen, wenn die Schuldverschreibung zum Zeitpunkt der fraglichen Zahlung einem Depotkonto bei einer bzw. einem nicht in der Relevanten Steuerjurisdiktion ansässigen Bank, Finanzdienstleistungsinstitut, |
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case outside the Relevant Taxing Jurisdiction; or |
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Wertpapierhandelsunternehmen oder Wertpapierhandelsbank gutgeschrieben gewesen wäre; oder |
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(d) |
payments where such withholding or deduction is imposed pursuant to (i) any European Union Directive or Regulation concerning the taxation of savings, or (ii) any international treaty or understanding relating to such taxation and to which the Relevant Taxing Jurisdiction or the European Union is a party/are parties, or (iii) any provision of law implementing, or complying with, or introduced to conform with, such Directive, Regulation, treaty or understanding, or (iv) the Luxembourg law of 23 December 2005; or |
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(d) |
falls der Einbehalt oder Abzug gemäß (i) einer Richtlinie oder Verordnung der Europäischen Union zur Zinsbesteuerung oder (ii) einem internationalen Abkommen oder Übereinkommen zu einer solchen Besteuerung, bei dem die Relevante Steuerjurisdiktion oder die Europäische Union Parteien sind, oder (iii) einem diese Richtlinie oder Verordnung oder dieses Abkommen oder Übereinkommen umsetzenden oder sie befolgenden oder zu ihrer Befolgung erlassenen Gesetz, oder (iv) dem Luxemburger Gesetz vom 23. Dezember 2005 erhoben wird; oder |
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(e) |
payments to the extent such withholding or deduction is payable by or on behalf of a Holder who could law-fully mitigate (but has not so mitigated) such withholding or deduction by complying or procuring that any third party complies with any statutory requirements or by making or procuring that a third party makes a declaration of non-residence or other similar claim for exemption to any tax authority in the place where the payment is effected (including, in the case of a payment by a Paying Agent situated in the United States, by providing prior to the receipt of any such payment, a complete, correct and executed IRS Form W-8 or W-9 or successor form, as applicable, with all appropriate attachments); or |
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(e) |
soweit der Einbehalt oder Abzug von dem Gläubiger oder von einem Dritten für den Gläubiger zahlbar ist, der einen solchen Einbehalt oder Abzug dadurch rechtmäßigerweise hätte vermindern können (aber nicht vermindert hat), dass er gesetzliche Vorschriften beachtet, oder dafür sorgt, dass Dritte dieses tun, oder dadurch dass er eine Nichtansässigkeitserklä-rung oder einen ähnlichen Antrag auf Quellensteuerbefreiung gegenüber der am Zahlungsort zuständigen Steuerbehörde; abgibt oder dafür sorgt, dass dies durch einen Dritten erfolgt (einschließlich, im Falle einer Zahlung durch eine Zahlstelle mit Sitz in den Vereinigten Staaten, durch Bereitstellung eines vollständigen, korrekten und ausgefüllten IRS-Formulars W-8 oder W-9 oder eines Nachfolgeformulars, falls zutreffend, mit allen entsprechenden Anlagen); oder |
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(f) |
payments to the extent such withholding or deduction is payable by or on behalf of a Holder who would have |
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(f) |
soweit der Einbehalt oder Abzug von dem Gläubiger oder von einem Dritten für den Gläubiger vorzunehmen |
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been able to mitigate such withholding or deduction by effecting a payment via another Paying Agent in a Member State of the European Union, not obliged to withhold or deduct tax; or |
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ist, der einen solchen Einbehalt oder Abzug durch die Bewirkung einer Zahlung über eine andere Zahlstelle in einem Mitgliedsstaat der Europäischen Union, welche nicht zu einem solchen Einbehalt oder Abzug verpflichtet ist, hätte vermindern können; oder |
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(g) |
payments to the extent such withholding or deduction is for or on account of the presentation by the Holder of any Note for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; or |
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(g) |
soweit der Einbehalt oder Abzug für einen Gläubiger oder dessen Rechnung vorzunehmen ist, der Schuldverschreibungen mehr als 30 Tage nach dem Tag, an dem eine Zahlung unter den Schuldverschreibungen fällig und zahlbar wurde bzw., soweit dies später eintritt, nach dem Tag, an dem die Zahlung ordnungsgemäß vorgenommen wurde, vorgelegt hat; oder |
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(h) |
payments to the extent such withholding or deduction is required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the Internal Revenue Code), or any amended or successor version thereof, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Internal Revenue Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Internal Revenue Code; or |
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(h) |
soweit der Einbehalt oder Abzug gemäß §§ 1471 bis 1474 des U.S. Internal Revenue Code von 1986 in seiner jeweils gültigen Fassung (der Internal Revenue Code), oder einer geänderten oder nachfolgenden Fassung davon, jeder gegenwärtigen oder zukünftigen Verordnung oder offiziellen Auslegung davon, jeder Vereinbarung, die gemäß § 1471(b) des Internal Revenue Codes eingegangen wurde oder jeder steuerlichen oder regulatorischen Gesetzgebung, sowie steuerlichen und regulatorischen Gesetzen oder Vorgehensweisen, die nach einem völkerrechtlichen Vertrag, der zur Umsetzung der Bestimmungen des Internal Revenue Codes geschlossen wurde, vorzunehmen ist; oder |
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(i) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder holding or owning, actually or constructively, 10% or more of the total combined voting power of all |
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jede Steuer, die von den Vereinigten Staaten oder einer ihrer politischen Unterabteilungen oder Regierungsbehörden auf Zinsen erhoben wird, weil ein Inhaber tatsächlich oder konstruktiv 10 % oder mehr der gesamten kombinierten Stimmrechte aller |
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classes of stock of the Issuer or the Guarantor entitled to vote; or |
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Aktiengattungen der Emittentin oder der Garantiegeberin hält oder besitzt; oder |
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(j) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder being a controlled foreign corporation that is a related person within the meaning of Section 864(d)(4) of the Internal Revenue Code with respect to the Issuer or the Guarantor; or |
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(j) |
jede Steuer, die von den Vereinigten Staaten oder einer politischen Unterabteilung oder Regierungsbehörde der Vereinigten Staaten oder darin erhoben wird, weil ein Inhaber eine kontrollierte ausländische Körperschaft ist, die eine verwandte Person im Sinne von Section 864(d)(4) des Internal Revenue Code in Bezug auf die Emittentin oder die Garantiegeberin ist; oder |
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(k) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder being a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business; or |
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jede Steuer, die von den Vereinigten Staaten oder einer politischen Unterabteilung oder Regierungsbehörde der Vereinigten Staaten oder darin erhoben wird, weil ein Inhaber eine Bank ist, die einen Kredit gemäß einem Kreditvertrag gewährt, der im normalen Geschäftsverkehr abgeschlossen wurde; oder |
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(l) |
any combination of items (a)-(k); |
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(l) |
jegliche Kombination der Absätze (a)-(k). |
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nor shall any Additional Amounts be paid with respect to any payment on a Note to a Holder who is a fiduciary or partnership or who is other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Relevant Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Holder of the Note. |
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Zudem werden keine Zusätzlichen Beträge im Hinblick auf Zahlungen auf die Schuldverschreibungen an einen Gläubiger gezahlt, welcher die Zahlung als Treuhänder oder Personengesellschaft oder als sonstiger nicht alleiniger wirtschaftlicher Eigentümer erhält, soweit nach den Gesetzen der Relevanten Steuerjurisdiktion(en) eine solche Zahlung für Steuerzwecke dem Einkommen des Begünstigten bzw. Gründers eines Treuhandvermögens oder dem Gesellschafter der Personengesellschaft zugerechnet würde, der jeweils selbst nicht zum Erhalt von Zusätzlichen Beträgen berechtigt gewesen wäre, wenn der Begünstigte, Gründer eines Treuhandvermögens, Gesellschafter oder wirtschaftliche Eigentümer unmittelbarer Gläubiger der Schuldverschreibungen wäre. |
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unremedied for more than 60 days after the Fiscal Agent has received a request thereof in the manner set forth in § 9(3) from a Holder to perform such obligation; or |
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Schuldverschreibungen unterlässt und die Unterlassung jeweils länger als 60 Tage fortdauert, nachdem die Emissionsstelle eine Aufforderung in der in § 9(3) vorgesehenen Art und Weise von dem Gläubiger erhalten hat, die Verpflichtung zu erfüllen; oder |
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(d) |
any Capital Market Indebtedness of the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) becomes prematurely repayable as a result of a default in respect of the terms thereof, or the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) fails to fulfill any payment obligation in excess of EUR 75,000,000 or the equivalent thereof under any Capital Market Indebtedness or under any guarantees or suretyships given for any Capital Market Indebtedness of others within 30 days from its due date or, in the case of such guarantee or suretyship, within 30 days of such guarantee or suretyship being invoked, unless the Issuer or the relevant Material Subsidiary or the Guarantor contests in good faith that such payment obligation exists or is due or that such guarantee or suretyship has been validly invoked or if a security granted therefor is enforced on behalf of or by the creditor(s) entitled thereto; or |
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(d) |
eine Kapitalmarktverbindlichkeit der Emittentin oder einer ihrer Wesentlichen Tochtergesellschaften oder der Garantiegeberin (es sei denn, die Garantie wurde gemäß diesen Emissionsbedingungen freigegeben) vorzeitig zahlbar wird aufgrund einer Pflichtverletzung aus dem dieser Kapitalmarktverbindlichkeit zugrunde liegenden Vertrag oder die Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß diesen Emissionsbedingungen freigegeben) eine Zahlungsverpflichtung in Höhe oder im Gegenwert von mehr als EUR 75.000.000 aus einer Kapitalmarktverbindlichkeit oder aufgrund einer Bürgschaft oder Garantie, die für Kapitalmarktverbindlichkeiten Dritter gegeben wurde, nicht innerhalb von 30 Tagen nach ihrer Fälligkeit bzw. im Fall einer Bürgschaft oder Garantie nicht innerhalb von 30 Tagen nach Inanspruchnahme aus dieser Bürgschaft oder Garantie erfüllt, es sei denn, die Emittentin oder die betreffende Wesentliche Tochtergesellschaft oder die Garantiegeberin bestreitet in gutem Glauben, dass diese Zahlungsverpflichtung besteht oder fällig ist bzw. diese Bürgschaft oder Garantie berechtigterweise geltend gemacht wird, oder falls eine für solche Verbindlichkeiten bestellte Sicherheit für die oder von den daraus berechtigten Gläubiger(n) in Anspruch genommen wird; oder |
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(e) |
the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) announces its inability to meet its financial obligations or ceases its payments generally; or |
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(e) |
die Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) gibt ihre Zahlungsunfähigkeit bekannt oder stellt ihre Zahlungen ein; oder |
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(f) |
a court opens insolvency proceedings against the Issuer or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) and such proceedings are instituted and have not been discharged or stayed within 90 days, or the Issuer applies for or institutes such proceedings; or |
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(f) |
ein Gericht ein Insolvenzverfahren gegen die Emittentin oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) eröffnet, und ein solches Verfahren eingeleitet und nicht innerhalb von 90 Tagen aufgehoben oder ausgesetzt worden ist, oder die Emittentin die Eröffnung eines solchen Verfahrens beantragt oder einleitet; oder |
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(g) |
the Issuer or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) enters into liquidation unless this is done in connection with a merger or other form of combination with another company and such company assumes all obligations contracted by the Issuer or the Guarantor in connection with the Notes or the Guarantee; or |
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(g) |
die Emittentin oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) in Liquidation tritt, es sei denn, dies geschieht im Zusammenhang mit einer Verschmelzung oder einer anderen Form des Zusammenschlusses mit einer anderen Gesellschaft und die andere oder neue Gesellschaft übernimmt alle Verpflichtungen, die die Emittentin oder die Garantiegeberin im Zusammenhang mit den Schuldverschreibungen oder der Garantie eingegangen ist; oder |
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(h) |
the Guarantee shall cease to be in full force and effect in accordance with its terms for any reason except pursuant to these Terms and Conditions or terms of the Guarantee governing the release of the Guarantee or the satisfaction in full of all the obligations thereunder or shall be declared invalid or unenforceable other than as contemplated by its terms, or the Guarantor shall repudiate, deny or disaffirm any of its obligations thereunder or under the Terms and Conditions. |
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(h) |
die Garantie aus irgendeinem Grund nicht mehr gemäß ihren Bedingungen uneingeschränkt wirksam ist, es sei denn, dies beruht auf diesen Emissionsbedingungen oder den Bedingungen der Garantie bezüglich der Freigabe der Garantie oder der vollständigen Erfüllung aller diesbezüglichen Verpflichtungen, oder aus anderen Gründen als in ihren Bedingungen festgelegt für unwirksam oder undurchsetzbar erklärt wird, oder die Garantiegeberin eine ihrer Verpflichtungen aus der Garantie oder aus den |
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(4) |
Quorum. |
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Quorum. |
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In the events specified in subparagraph (1)(c) and/or (d) of this § 9, any notice declaring Notes due shall, unless at the time such notice is received any of the events specified in subparagraph (1) (a), (b) and (e) through (g) of this § 9 entitling Holders to declare their Notes due has occurred, become effective only when the Fiscal Agent has received such default notices from the Holders representing at least 25% of the aggregate principal amount of Notes then outstanding. |
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In den Fällen gemäß Absatz (1)(c) und/oder (d) dieses § 9 wird eine Kündigungserklärung, sofern nicht bei deren Eingang zugleich einer der in Absatz (1)(a), (b) und (e) bis (g) dieses § 9 bezeichneten Kündigungsgründe vorliegt, erst wirksam, wenn bei der Emissionsstelle Kündigungserklärungen von Gläubigern im Nennbetrag von mindestens 25% des Gesamtnennbetrages der zu diesem Zeitpunkt noch insgesamt ausstehenden Schuldverschreibungen eingegangen sind. |
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§ 10 |
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§ 10 |
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(SUBSTITUTION) |
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(ERSETZUNG) |
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(1) |
Substitution. |
(1) |
Ersetzung |
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The Issuer (reference to which shall always include any previous Substitute Debtor (as defined below)) may, at any time, if no payment of principal of or interest on any of the Notes is in default, without the consent of the Holders, substitute for the Issuer any Affiliate (as defined below) of Fresenius Medical Care AG & Co. KGaA as the principal debtor in respect of all obligations arising from or in connection with the Notes (any such company, the Substitute Debtor), provided that: |
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Die Emittentin (wobei eine Bezugnahme auf die Emittentin auch alle früheren Nachfolgeschuldner (wie nachfolgend definiert) umfasst) ist jederzeit berechtigt, wenn kein Zahlungsverzug hinsichtlich Kapital oder Zinsen auf die Schuldverschreibungen vorliegt, ohne weitere Zustimmung der Gläubiger ein mit der Fresenius Medical Care AG & Co. KGaA verbundenes Unternehmen (wie nachfolgend definiert) an ihrer Stelle als Hauptschuldnerin (ein solches Unternehmen ist die Nachfolgeschuldnerin) für alle Verpflichtungen aus und im Zusammenhang mit den Schuldverschreibungen einzusetzen, vorausgesetzt, dass: |
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(a) the Substitute Debtor assumes all obligations of the Issuer in respect of the Notes and is in a position to fulfill all payment obligations arising from or in connection with the Notes in the Specified Currency without, subject to lit. (e) below, the necessity of any taxes or duties levied by the country or jurisdiction in which the Substitute Debtor is domiciled (other than taxes which would also be levied in the absence of such substitution) to be withheld or deducted at source and |
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(a) die Nachfolgeschuldnerin alle Verpflichtungen der Emittentin im Zusammenhang mit den Schuldverschreibungen rechtswirksam übernimmt und sie sämtliche sich aus oder im Zusammenhang mit den Schuldverschreibungen ergebenden Zahlungsverpflichtungen in der Festgelegten Währung ohne die Notwendigkeit (vorbehaltlich Buchstabe (e)) einer Einbehaltung an der Quelle oder des Abzugs irgendwelcher Steuern oder Abgaben in dem Land oder |
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to transfer all amounts which are required therefore to the Paying Agent without any restrictions, and that in particular all necessary authorizations to this effect by any competent authority have been obtained, and, to the extent service of process must be effected to the Substitute Debtor outside of Germany, a service of process agent in Germany is appointed; |
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Hoheitsgebiet, in dem die Nachfolgeschuldnerin ihren Sitz hat (mit Ausnahme von Steuern, die auch angefallen wären, wäre die Ersetzung nicht erfolgt), erfüllen sowie die hierzu erforderlichen Beträge ohne Beschränkungen an die Zahlstelle transferieren kann und sie insbesondere jede hierfür notwendige Genehmigung der Behörden ihres Landes erhalten hat, und, sofern eine Zustellung an die Nachfolgeschuldnerin außerhalb von Deutschland erfolgen müsste, ein Zustellungsbevollmächtigter in Deutschland bestellt wird; |
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(b) |
if at the time of such substitution the Issuer is Fresenius Medical Care AG & Co. KGaA, the Issuer irrevocably and unconditionally guarantees (the Substitution Guarantee) in favor of each Holder the payment of all sums payable by the Substitute Debtor in respect of the Notes on terms equivalent to the terms of the Guarantee; |
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(b) |
wenn zum Zeitpunkt der Ersetzung Fresenius Medical Care AG & Co. KGaA die Emittentin ist, die Emittentin unwiderruflich und unbedingt gegenüber den Gläubigern die Zahlung aller von der Nachfolgeschuldnerin auf die Schuldverschreibungen zahlbaren Beträge zu Bedingungen garantiert (die Ersetzungsgarantie), die den Bedingungen der Garantie entsprechen; |
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(c) |
the Substitute Debtor and the Issuer have obtained all necessary governmental and regulatory approvals and consents for such substitution and for the giving by the Issuer of the Substitution Guarantee in respect of the obligations of the Substitute Debtor, that the Substitute Debtor has obtained all necessary governmental and regulatory approvals and consents for the performance by the Substitute Debtor of its obligations under the Notes, and that all such approvals and consents are in full force and effect and that the obligations assumed by the Substitute Debtor and the Substitution Guarantee given by the Issuer are each valid and binding in accordance with their respective terms and enforceable by |
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(c) |
die Nachfolgeschuldnerin und die Emittentin alle für die Ersetzung und die Abgabe der Ersetzungsgarantie von der Emittentin notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten haben, die Nachfolgeschuldnerin alle für die Erfüllung ihrer Verpflichtungen aus den Schuldverschreibungen notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten hat und weiterhin sämtliche dieser Genehmigungen und Einverständniserklärungen in vollem Umfang gültig und wirksam sind und zudem die Verpflichtungen der Nachfolgeschuldnerin und die von der Emittentin begebene Ersetzungsgarantie gemäß ihren Bestimmungen wirksam |
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each Holder; |
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und rechtsverbindlich und durch jeden Gläubiger durchsetzbar sind; |
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(d) |
§ 9 shall be deemed to be amended so that it shall also be an Event of Default under such provision if the Substitution Guarantee shall cease to be valid or binding on or enforceable against Fresenius Medical Care AG & Co. KGaA; |
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(d) |
§ 9 dergestalt als ergänzt gilt, dass ein zusätzlicher Kündigungsgrund unter dieser Bestimmung der Wegfall der Wirksamkeit, Rechtsverbindlichkeit oder Durchsetzbarkeit der Ersetzungsgarantie gegen Fresenius Medical Care AG & Co. KGaA ist; |
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(e) |
the Substitute Debtor undertakes to reimburse any Holder for such taxes, fees or duties which may be imposed upon such Holder in connection with any payments on the Notes (including taxes or duties being deducted or withheld at source), upon conversion or otherwise, as a consequence of the assumption of the Issuers obligations by the Substitute Debtor, provided that such undertaking shall be limited to amounts that would not have been imposed upon the Holder had such substitution not occurred; and |
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(e) |
die Nachfolgeschuldnerin sich verpflichtet, jedem Gläubiger alle Steuern, Gebühren oder Abgaben zu erstatten, die ihm im Zusammenhang mit Zahlungen auf die Schuldverschreibungen (einschließlich Steuern und Abgaben, die an der Quelle abgeführt oder einbehalten wurden), durch den Schuldnerwechsel oder in anderer Weise infolge der Schuldübernahme durch die Nachfolgeschuldnerin auferlegt werden, vorausgesetzt, dass sich die Verpflichtung auf Beträge beschränkt, die der Gläubiger ohne die Ersetzung der Emittentin nicht hätte tragen müssen; und |
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(f) |
there shall have been delivered to the Fiscal Agent one opinion for each jurisdiction affected of lawyers of recognized standing to the effect that subparagraphs (a) through (e) above have been satisfied. |
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(f) |
der Emissionsstelle jeweils ein Rechtsgutachten bezüglich der betroffenen Rechtsordnungen von anerkannten Rechtsanwälten vorgelegt wurden, die bestätigen, dass die Bestimmungen in den vorstehenden Unterabsätzen (a) bis (e) erfüllt wurden. |
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For purposes of this § 10, Affiliate shall mean any affiliated company (verbundenes Unternehmen) within the meaning of sections 15 et seqq. of the German Stock Corporation Act (Aktiengesetz) held by Fresenius Medical Care AG & Co. KGaA. |
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Für Zwecke dieses § 10 bedeutet verbundenes Unternehmen jedes von Fresenius Medical Care AG & Co. KGaA gehaltene verbundene Unternehmen im Sinne der §§ 15 ff. Aktiengesetz. |
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(2) |
Discharge from Obligations. |
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(2) |
Schuldbefreiung. Bezugnahmen. |
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References. Upon a substitution in accordance with this § 10, the Substitute Debtor shall be deemed to be named in the Notes as the principal |
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Nach einer Ersetzung gemäß dieses § 10 gilt die Nachfolgeschuldnerin als in den Schuldverschreibungen an Stelle der Emittentin als |
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in lieu of publication as set forth in subparagraph (1) above; any such notice shall be deemed to have been given on the seventh day after the day on which the said notice was given to the Clearing System. |
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nach Absatz 1 durch eine Mitteilung an das Clearing System zur Weiterleitung an die Gläubiger ersetzen; jede derartige Mitteilung gilt am siebten Tag nach dem Tag der Mitteilung an das Clearing System als den Gläubigern mitgeteilt. |
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§ 13 |
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§ 13 |
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(AMENDMENTS TO THE TERMS AND CONDITIONS |
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(ÄNDERUNG DER EMISSIONSBEDINGUNGEN |
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BY RESOLUTION OF THE HOLDERS, HOLDERS |
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DURCH BESCHLUSS DER GLÄUBIGER; |
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REPRESENTATIVE, AMENDMENT OF THE |
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GEMEINSAMER VERTRETER, ÄNDERUNG DER |
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GUARANTEE) |
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GARANTIE) |
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(1) |
Resolutions of Holders. |
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(1) |
Beschlüsse durch die Gläubiger. |
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The Holders may with consent of the Issuer (if required) by a majority resolution pursuant to section 5 et seqq. of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen) (the SchVG), as amended from time to time, agree to amendments of the Terms and Conditions or resolve any other matters provided for by the SchVG. In particular, the Holders may consent to amendments which materially change the substance of the Terms and Conditions, including such measures as provided for under section 5 paragraph 3 of the SchVG by resolutions passed by such majority of the votes of the Holders as stated under § 13(2) below. A duly passed majority resolution shall be binding upon all Holders. |
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Die Gläubiger können mit Zustimmung der Emittentin (soweit erforderlich) aufgrund Mehrheitsbeschlusses nach Maßgabe der §§ 5 ff. des Gesetzes über Schuldverschreibungen aus Gesamtemissionen (das SchVG) in seiner jeweils gültigen Fassung die Emissionsbedingungen ändern oder sonstige Maßnahmen gemäß dem SchVG beschließen. Die Gläubiger können insbesondere einer Änderung wesentlicher Inhalte der Emissionsbedingungen, einschließlich der in § 5 Abs. 3 SchVG vorgesehenen Maßnahmen durch Beschlüsse mit den in dem nachstehenden § 13(2) genannten Mehrheiten zustimmen. Ein ordnungsgemäß gefasster Mehrheitsbeschluss ist für alle Gläubiger verbindlich. |
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(2) |
Majority. |
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(2) |
Mehrheit. |
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Except as provided by the following sentence and provided that the quorum requirements are being met, the Holders may pass resolutions by simple majority of the voting rights participating in the vote. Resolutions which materially change the substance of the Terms and Conditions, in particular in the cases of section 5 paragraph 3 numbers 1 through 9 SchVG, or relating to material other matters may only be passed by a majority of at least 75% of the voting rights participating in the vote (a Qualified |
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Vorbehaltlich des nachstehenden Satzes und der Erreichung der erforderlichen Beschlussfähigkeit, beschließen die Gläubiger mit der einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte. Beschlüsse, durch welche der wesentliche Inhalt der Emissionsbedingungen, insbesondere in den Fällen des § 5 Abs. 3 Nummern 1 bis 9 SchVG, geändert wird, bedürfen zu ihrer Wirksamkeit einer Mehrheit von mindestens 75% der an der Abstimmung teilnehmenden |
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Majority). |
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Stimmrechte (eine Qualifizierte Mehrheit). |
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(3) |
Passing of resolutions. |
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(3) |
Beschlussfassung. |
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The Holders can pass resolutions in a meeting (Gläubigerversammlung) in accordance with section 5 et seqq. of the SchVG or by means of a vote without a meeting (Abstimmung ohne Versammlung) in accordance with section 18 and section 5 et seqq. of the SchVG. |
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Die Gläubiger können Beschlüsse in einer Gläubigerversammlung gemäß §§ 5 ff. SchVG oder im Wege einer Abstimmung ohne Versammlung gemäß § 18 und § 5 ff. SchVG fassen. |
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(4) |
Meeting. |
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Gläubigerversammlung. |
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Attendance at the meeting and exercise of voting rights is subject to the Holders registration. The registration must be received at the address stated in the convening notice no later than the third day preceding the meeting. As part of the registration, Holders must demonstrate their eligibility to participate in the vote in accordance with section 10 paragraph 3 of the SchVG. |
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Die Teilnahme an der Gläubigerversammlung und die Ausübung der Stimmrechte ist von einer vorherigen Anmeldung der Gläubiger abhängig. Die Anmeldung muss unter der in der Bekanntmachung der Einberufung mitgeteilten Adresse spätestens am dritten Tag vor der Gläubigerversammlung zugehen. Mit der Anmeldung müssen die Gläubiger ihre Berechtigung zur Teilnahme an der Abstimmung gemäß § 10 Absatz 3 SchVG nachweisen. |
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(5) |
Vote without a meeting. |
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Abstimmung ohne Versammlung. |
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Together with casting their votes Holders must demonstrate their eligibility to participate in the vote in accordance with § 10 paragraph 3 of the SchVG. |
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Zusammen mit der Stimmabgabe müssen die Gläubiger ihre Berechtigung zur Teilnahme an der Abstimmung gemäß § 10 Absatz 3 SchVG nachweisen. |
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(6) |
Second meeting. |
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Zweite Versammlung. |
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If it is ascertained that no quorum exists for the meeting pursuant to § 13(4) or the vote without a meeting pursuant to § 13(5), in case of a meeting the chairman (Vorsitzender) may convene a second meeting in accordance with section 15 paragraph 3 sentence 2 of the SchVG or in case of a vote without a meeting the scrutineer (Abstimmungsleiter) may convene a second meeting within the meaning of section 15 paragraph 3 sentence 3 of the SchVG. Attendance at the second meeting and exercise of voting |
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Wird für die Gläubigerversammlung gemäß § 13(4) oder die Abstimmung ohne Versammlung gemäß § 13(5) die mangelnde Beschlussfähigkeit festgestellt, kann im Fall der Gläubigerversammlung der Vorsitzende eine zweite Versammlung im Sinne von § 15 Abs. 3 Satz 2 SchVG und im Fall der Abstimmung ohne Versammlung der Abstimmungsleiter eine zweite Versammlung im Sinne von § 15 Abs. 3 Satz 3 SchVG einberufen. Die Teilnahme an der zweiten Versammlung und die Ausübung der Stimmrechte |
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(2) |
Submission to Jurisdiction. |
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(2) |
Gerichtsstand. |
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Subject to any mandatory jurisdiction for specific proceedings under the SchVG, the District Court (Landgericht) in Frankfurt am Main shall have non-exclusive jurisdiction for any action or other legal proceedings (Proceedings) arising out of or in connection with the Notes. |
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Vorbehaltlich eines zwingenden Gerichtsstandes für besondere Rechtsstreitigkeiten im Zusammenhang mit dem SchVG, ist das Landgericht Frankfurt am Main nicht ausschließlich zuständig für sämtliche im Zusammenhang mit den Schuldverschreibungen entstehenden Klagen oder sonstige Verfahren (Rechtsstreitigkeiten). |
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(3) |
Enforcement. |
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(3) |
Gerichtliche Geltendmachung. |
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Any Holder of Notes may in any proceedings against the Issuer or the Guarantor or to which such Holder and the Issuer or the Guarantor are parties, protect and enforce in his own name his rights arising under such Notes on the basis of (i) a statement issued by the Custodian with whom such Holder maintains a securities account in respect of the Notes (a) stating the full name and address of the Holder, (b) specifying the aggregate principal amount of Notes credited to such securities account on the date of such statement and (c) confirming that the Custodian has given written notice to the Clearing System containing the information pursuant to (a) and (b) which has been confirmed by the Clearing System; (ii) a copy of the Note in global form certified as being a true copy by a duly authorized officer of the Clearing System or a depositary of the Clearing System, without the need for production in such proceedings of the actual records or the global note representing the Notes or (iii) any other means of proof permitted in legal proceedings in the country of enforcement. For purposes of the foregoing, Custodian means any bank or other financial institution of recognized standing authorized to engage in securities custody business with which the Holder maintains a securities account in respect of the Notes and which maintains an account with the Clearing System, and includes the Clearing System. Each Holder may, without prejudice to the foregoing, protect and enforce his rights under |
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Jeder Gläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Emittentin oder die Garantiegeberin oder in jedem Rechtsstreit, in dem der Gläubiger und die Emittentin oder die Garantiegeberin Partei sind, seine Rechte aus diesen Schuldverschreibungen im eigenen Namen auf der folgenden Grundlage zu schützen oder geltend zu machen: (i) er bringt eine Bescheinigung der Depotbank bei, bei der er für die Schuldverschreibungen ein Wertpapierdepot unterhält, welche (a) den vollständigen Namen und die vollständige Adresse des Gläubigers enthält, (b) den Gesamtnennbetrag der Schuldverschreibungen bezeichnet, die unter dem Datum der Bestätigung auf dem Wertpapierdepot verbucht sind und (c) bestätigt, dass die Depotbank gegenüber dem Clearingsystem eine schriftliche Erklärung abgegeben hat, die die vorstehend unter (a) und (b) bezeichneten Informationen enthält und einen Bestätigungsvermerk des Clearingsystems trägt; (ii) er legt eine Kopie der die betreffenden Schuldverschreibungen verbriefenden Globalurkunde vor, deren Übereinstimmung mit dem Original eine vertretungsberechtigte Person des Clearingsystems oder des Verwahrers des Clearingsystems bestätigt hat, ohne dass eine Vorlage der Originalbelege oder der die Schuldverschreibungen verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre oder (iii) auf jede andere Weise, die im Lande der Geltendmachung prozessual zulässig ist. Für die Zwecke |
Part II.: ADDITIONAL INFORMATION |
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Teil II ZUSÄTZLICHE INFORMATIONEN |
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A. Essential information |
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Grundlegende Angaben |
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Interests of Natural and Legal Persons involved in the Issue/Offer |
None |
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Interessen von Seiten natürlicher und juristischer Personen, die an |
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der Emission/dem Angebot beteiligt sind |
Keine |
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Reasons for the offer to the public or for the admission to trading |
General corporate purposes including |
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and use of proceeds |
refinancing of existing financial liabilities |
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Gründe für das öffentliche Angebot oder die Zulassung zum Handel |
Allgemeine Unternehmenszwecke ein- |
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und Verwendung der Erlöse |
schließlich der Refinanzierung bestehen- |
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der Finanzverbindlichkeiten |
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Estimated net proceeds |
EUR 746,565,000 |
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Geschätzter Nettobetrag der Erträge |
EUR 746.565.000 |
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Estimated total expenses of the issue |
EUR 50,000 |
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Geschätzte Gesamtkosten der Emission |
EUR 50.000 |
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Eurosystem eligibility |
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EZB-Fähigkeit |
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x |
Intended to be held in a manner which would |
Yes |
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allow Eurosystem eligibility |
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Soll in EZB-fähiger Weise gehalten werden |
Ja |
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Yes. Note that the designation Yes in the case of a NGN simply means that the Notes are intended upon issue to be deposited with one of the ICSDs as common safekeeper, and does not necessarily mean that the Notes will be recognized as eligible collateral for Eurosystem monetary policy and intraday credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon the ECB being satisfied that Eurosystem eligibility criteria have been met. |
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Ja. Es ist zu beachten, dass die Bestimmung Ja im Fall einer NGN lediglich bedeutet, dass die Schuldverschreibungen nach Begebung bei einer der ICSDs als gemeinsamer Verwahrer hinterlegt werden sollen, und es bedeutet nicht notwendigerweise, dass die Schuldver-schreibungen als geeignete Sicherheit im Sinne der Währungspolitik des Eurosystems und der taggleichen Überziehungen (intraday credit operations) des Eurosystem entweder nach Begebung oder zu einem Zeitpunkt während ihrer Existenz anerkannt werden. Eine solche Anerkennung wird vom Urteil der EZB abhängen, dass die Eurosystemfähigkeitskriterien erfüllt werden. |
and provisions applying to such representation. Indication of |
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the website where the public may have free access to the |
Not applicable |
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contracts relation to these forms of representation |
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Vertretung der Inhaber von Nichtdividendenwerten unter An |
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gabe der die Anleger vertretenden Organisation und der für |
Nicht anwendbar |
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diese Vertretung geltenden Bestimmungen. Angabe der |
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Website, auf der die Anleger die Verträge, die diese Repräsen |
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tationsformen regeln, kostenlos einsehen können |
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Resolutions, authorizations and approvals by virtue of which the Notes will be created |
The issue of the Notes has been authorized by a resolution of the management board of the Issuers general partner dated March 25, 2020 and by a resolution of the supervisory board of the Issuers general partner dated March 26, 2020. |
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Beschlüsse, Ermächtigungen und Genehmigungen, welche die Grundlage für die Schaffung der Schuldverschreibungen bilden |
Die Begebung der Schuldverschreibungen wurde ordnungsgemäß genehmigt durch Vorstandsbeschluss der Komplementärin der Emittentin vom 25. März 2020 und Aufsichtsratsbeschluss der Komplementärin der Emittentin vom 26. März 2020. |
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C. |
Terms and conditions of the offer of the Notes to the |
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public |
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Bedingungen und Konditionen des öffentlichen Ange bots |
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von Schuldverschreibungen |
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C.1 |
Conditions, offer statistics, expected timetable and action |
Not applicable |
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required to apply for the offer |
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Angebotsstatistiken, erwarteter Zeitplan und erforderliche |
Nicht anwendbar |
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Maßnahmen für die Antragstellung |
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Conditions to which the offer is subject |
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Bedingungen, denen das Angebot unterliegt |
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Time period, including any possible amendments, during |
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which the offer will be open |
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Frist - einschließlich etwaiger Änderungen während der das |
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Angebot gültig ist |
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Description of the application process |
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Beschreibung des Prozesses für die Umsetzung des Angebots |
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A description of the possibility to reduce subscriptions and the |
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manner for refunding excess amount paid by applicants |
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Beschreibung der Möglichkeit zur Reduzierung der Zeichnungen |
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und der Art und Weise der Erstattung des zu viel gezahlten |
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Betrags an die Zeichner |
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Details of the minimum and/or maximum amount |
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of application, (whether in number of Notes or aggregate |
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Kosten/Steuern, die dem Zeichner/Käufer in Rechnung gestellt |
Nicht anwendbar |
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C.4 |
Placing and underwriting |
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Platzierung und Emission |
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Name and address of the coordinator(s) of the global offer and of |
Not applicable |
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single parts of the offer and, to the extent known to the Issuer or |
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the offeror, or the placers in the various countries where the offer |
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takes place |
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Name und Anschrift des Koordinators/der Koordinatoren des globalen |
Nicht anwendbar |
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Angebots oder einzelner Teile des Angebots und sofern der |
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Emittentin oder dem Bieter bekannt Angaben zu den Platzierern in |
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den einzelnen Ländern des Angebots |
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Method of distribution |
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Vertriebsmethode |
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o |
Non-syndicated |
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Nicht syndiziert |
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x |
Syndicated |
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Syndiziert |
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Subscription Agreement |
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Übernahmevertrag |
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Date of Subscription Agreement |
May 27, 2020 |
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Datum des Subscription Agreements |
27. Mai 2020 |
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Material Features of the Subscription Agreement: |
Under the Subscription Agreement, the Issuer agrees to issue the Notes and each Dealer agrees to purchase the Notes; the Issuer and each Dealer agree inter alia on the aggregate principal amount of the issue, the principal amount of the Dealers commitments, the Issue Price, the Issue Date and the commissions. |
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Hauptmerkmale des Übernahmevertrages: |
Unter dem Übernahmevertrag vereinbart die Emittentin, die Schuldverschreibungen zu begeben und jeder Platzeur stimmt zu, die Schuldverschreibungen zu erwerben. Die Emittentin und jeder Platzeur vereinbaren im Übernahmevertrag unter anderem den Gesamtnennbetrag der Emission, die gemäß der Übernahmeverpflichtung auf die Platzeure entfallenden Nennbeträge, den Ausgabepreis, den Valutierungstag und die Provisionen. |
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Management Details including form of commitment |
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Einzelheiten bezüglich des Bankenkonsortiums einschließlich der |
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Art der Übernahme |
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Specify Management Group or Dealer (names and addresses) |
Active Bookrunners |
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Bankenkonsortium oder Platzeur angeben (Namen und Anschriften) |
Commerzbank Aktiengesellschaft |
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Kaiserstrasse 16 (Kaiserplatz) |
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60311 Frankfurt am Main |
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Germany |
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Deutsche Bank Aktiengesellschaft |
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Mainzer Landstraße 11-17 |
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60329 Frankfurt am Main |
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Germany |
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Mizuho Securities Europe GmbH |
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Taunustor 1 |
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60311 Frankfurt am Main |
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Germany |
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Société Générale |
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Tours Société Générale |
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17 Cours Valmy |
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92987 Paris La Défense Cedex |
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France |
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Passive Bookrunners |
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Banco Santander, S.A. |
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Avenida de Cantabria s/n |
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28660 Boadilla del Monte Madrid |
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Spain |
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UniCredit Bank AG |
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Arabellastrasse 12 |
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81925 Munich |
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Germany |
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Co-Lead Managers |
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Landesbank Baden-Württemberg |
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Am Hauptbahnhof 2 |
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70173 Stuttgart |
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Germany |
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Landesbank Hessen-Thüringen |
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Girozentrale |
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Main Tower |
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Neue Mainzer Strasse 52-58 |
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60311 Frankfurt am Main |
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Germany |
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x |
Firm commitment |
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Feste Zusage |
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o |
no firm commitment / best efforts arrangements |
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Keine feste Zusage / zu den bestmöglichen Bedingungen |
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Commissions |
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Provisionen |
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Management/Underwriting Commission (specify) |
0.20% of the aggregate principal amount |
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Management- und Übernahmeprovision (angeben) |
0,20% des Gesamtnennbetrags |
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Selling Concession (specify) |
Not applicable |
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Verkaufsprovision (angeben) |
Nicht anwendbar |
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Listing Commission (specify) |
Not applicable |
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Börsenzulassungsprovision (angeben) |
Nicht anwendbar |
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Prohibition of Sales to EEA and UK Retail Investors |
Not applicable |
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Verbot des Verkaufs an EWR- und UK-Privatanleger |
Nicht anwendbar |
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Stabilising Dealer/Manager |
Deutsche Bank Aktiengesellschaft |
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Kursstabilisierender Dealer/Manager |
Mainzer Landstraße 11-17 |
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60329 Frankfurt am Main |
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Germany |
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C.5 |
Public Offer Jurisdictions |
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Jurisdiktionen für öffentliches Angebot |
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Public Offer Jurisdiction(s) |
Not applicable |
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Jurisdiktionen, in denen ein öffentliches |
Nicht anwendbar |
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Angebot stattfindet |
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D. |
Listing(s) and admission to trading |
Yes |
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Börsenzulassung(en) und Notierungsaufnahme |
Ja |
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x |
Regulated Market of the Luxembourg Stock Exchange |
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Regulierter Markt der Luxemburger Wertpapierbörse |
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o |
Other |
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Sonstige |
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Date of admission |
May 29, 2020 |
Termin der Zulassung |
29. Mai 2020 |
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Estimate of the total expenses related to admission to trading |
Not applicable |
Geschätzte Gesamtkosten für die Zulassung zum Handel |
Nicht anwendbar |
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All regulated markets or third-country markets, SME Growth Market |
Not applicable |
or MTFs on which, to the knowledge of the Issuer, notes of the |
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same class of the notes to be offered to the public or admitted to |
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trading are already admitted to trading |
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Angabe sämtlicher regulierter Märkte oder Märkte in Drittstaaten, |
Nicht anwendbar |
KMU-Wachstumsmärkte oder MTFs, auf denen nach Kenntnis der |
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Emittentin Schuldverschreibungen der gleichen Wertpapierkategorie, |
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die öffentlich angeboten oder zum Handel zugelassen werden |
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such update. |
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Fitch Ratings Limited hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Standard & Poors Credit Market Services Europe Limited (Zweigniederlassung Deutschland) hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Moodys Deutschland GmbH hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Die Europäische Wertpapier und Marktaufsichtsbehörde (ESMA) veröffentlicht auf ihrer Webseite (http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) ein Verzeichnis der nach der Ratingverordnung registrierten Ratingagenturen. Dieses Verzeichnis wird innerhalb von fünf Werktagen nach Annahme eines Beschlusses gemäß Artikel 16, 17 oder 20 der Ratingverordnung aktualisiert. Die Europäische Kommission veröffentlicht das aktualisierte Verzeichnis im Amtsblatt der Europäischen Union innerhalb von 30 Tagen nach der Aktualisierung. |
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F. |
Information to be provided regarding the consent by the Issuer or person responsible for drawing up the Prospectus and the Final Terms |
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Zur Verfügung zu stellende Informationen über die Zustimmung der Emittentin oder der für die Erstellung des Prospekts und der Endgültigen Bedingungen zuständigen Person |
The consent to the use of the Prospectus and these Final Terms for the subsequent resale or final placement of Notes by all financial intermediaries is given by the Issuer in relation to Luxembourg and Germany.
The subsequent resale or final placement of Notes by financial intermediaries can be made during the offer period. The offer period commences on May 27, 2020 and ends on May 29, 2020.
Die Zustimmung zu der Verwendung des Prospekts und dieser Endgültigen Bedingungen zu der späteren Weiterveräußerung und der endgültigen Platzierung der Schuldverschreibungen durch alle Finanzintermediäre wird von der Emittentin in Bezug auf Luxemburg und Deutschland erteilt.
Die spätere Weiterveräußerung und endgültige Platzierung der Wertpapiere durch Finanzintermediäre kann während der Angebotsfrist erfolgen. Die Angebotsfrist beginnt am 27. Mai 2020 und endet am 29. Mai 2020.
Third Party Information
Informationen von Seiten Dritter
With respect to any information included herein and specified to be sourced from a third party (i) the Issuer confirms that any such information has been accurately reproduced and as far as the Issuer is aware and is able to ascertain from information available to it from such third party, no facts have been omitted which would render the reproduced information inaccurate or misleading and (ii) the Issuer has not independently verified any such information and accepts no responsibility for the accuracy thereof.
Hinsichtlich der hierin enthaltenen und als solche gekennzeichneten Informationen von Seiten Dritter gilt Folgendes: (i) Die Emittentin bestätigt, dass diese Informationen zutreffend wiedergegeben worden sind und - soweit es der Emittentin bekannt ist und sie aus den von diesen Dritten zur Verfügung gestellten Informationen ableiten konnte - wurden keine Fakten unterschlagen, die die wiedergegebenen Informationen unzutreffend oder irreführend gestalten würden; (ii) die Emittentin hat diese Informationen nicht selbständig überprüft und übernimmt keine Verantwortung für ihre Richtigkeit.
[Signature Page follows]
[Unterschriftsseite folgt]
Fresenius Medical Care AG & Co. KGaA represented by Fresenius Medical Care Management AG, its general partner
Fresenius Medical Care AG & Co. KGaA vertreten durch Fresenius Medical Care Management AG, ihren persönlich haftenden Gesellschafter
/s/ Rice Powell |
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Rice Powell |
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Member of the Management Board |
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Helen Giza |
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Member of the Management Board |
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Fresenius Medical Care AG & Co. KGaA represented by Fresenius Medical Care Management AG, its general partner
Fresenius Medical Care AG & Co. KGaA vertreten durch Fresenius Medical Care Management AG, ihren persönlich haftenden Gesellschafter
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Rice Powell |
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Member of the Management Board |
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/s/ Helen Giza |
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Helen Giza |
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Member of the Management Board |
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Annex
Summary for the Individual Issue
SECTION A: INTRODUCTION CONTAINING WARNINGS
This summary relates to the tranche EUR 750,000,000 1.500 per cent. Notes due May 29, 2030 with the ISIN XS2178769159 (the Notes), issued by Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Straße 1, 61352 Bad Homburg vor der Höhe, Germany (tel.: +49-6172-609-0; website: www.freseniusmedicalcare.com; LEI: 549300CP8NY40UP89Q40) (the Issuer) under the Issuers EUR 10,000,000,000 Debt Issuance Program (the Program).
The Commission de Surveillance du Secteur Financier (CSSF), 283, route dArlon L-1150 Luxembourg (tel.: +352 26 25 1 - 1; fax: +352 26 25 1 - 2601; e-mail: direction@cssf.lu) has approved the base prospectus for the Program (the Base Prospectus) as the competent authority under Regulation (EU) 2017/1129 on May 19, 2020.
This Summary has been prepared in accordance with Article 7 of Regulation (EU) 2017/1129 and should be read as an introduction to the Base Prospectus and the applicable Final Terms. Any decision to invest in the Notes should be based on consideration of the Base Prospectus as a whole, including any documents incorporated by reference therein, and the applicable Final Terms by the investor. An investor in the Notes could lose all or part of the invested capital. Where a claim relating to the information contained in the Base Prospectus or the applicable Final Terms is brought before a court, the plaintiff investor might, under national law, have to bear the costs of translating the Base Prospectus and the applicable Final Terms, before the legal proceedings are initiated. Civil liability attaches only to the Issuer and the Guarantor which have tabled the Summary including any translation thereof, but only if the Summary is misleading, inaccurate or inconsistent, when read together with the Base Prospectus and the applicable Final Terms, or where it does not provide, when read together with the Base Prospectus and the applicable Final Terms, key information in order to aid investors when considering whether to invest in such Notes.
SECTION B: KEY INFORMATION ON THE ISSUER
B.1 Who is the issuer of the securities?
B.1.1 Domicile, legal form, LEI, jurisdiction of incorporation and country of operation
The Issuer is a partnership limited by shares (Kommanditgesellschaft auf Aktien) with a German stock corporation (Aktiengesellschaft) as a general partner and its registered seat (Sitz) at Hof an der Saale, Germany, incorporated under and governed by the laws of Germany. The LEI of the Issuer is 549300CP8NY40UP89Q40.
B.1.2 Principal activities
The Issuers principal activity is to act as holding company for its subsidiaries, which provide dialysis care and related services to persons who suffer from end-stage renal diseases as well as other health care services, and which develop and manufacture a wide variety of health care products, which include both dialysis and non-dialysis products.
B.1.3 Major Shareholders
As of May 11, 2020, the Issuers share capital consisted of 304,492,501 ordinary shares. Fresenius SE & Co. KGaA (Fresenius SE) owned 32.2% of the Issuers ordinary shares on May 11, 2020. Fresenius SE is also the owner of 100% of the outstanding share capital of the Issuers general partner and has sole power to elect the supervisory board of the Issuers general partner. The Else Kröner-Fresenius-Stiftung is the sole shareholder of Fresenius Management SE, the general partner of Fresenius SE, and has sole power to elect the supervisory board of Fresenius Management SE. In addition, the Else Kröner-Fresenius-Stiftung owned 26.6% of the share capital of Fresenius SE on December 31, 2019.
B.1.4 Key managing directors
The Issuers sole general partner is Fresenius Medical Care Management AG (the General Partner). The management board of the General Partner consists of Rice Powell, Helen Giza, William Valle, Olaf Schermeier, Kent Wanzek, Harry de Wit, Katarzyna Mazur-Hofsäß and Franklin W. Maddux.
B.1.5 Identity of the statutory auditors
Until December 31, 2019, KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Germany, was the auditor of the consolidated financial statements of the Issuer for the fiscal years ended December 31, 2019 and 2018.
B.2 What is the key financial information regarding the Issuer?
The following selected financial data are derived from the consolidated financial statements of the Issuer prepared in accordance with IFRS as of and for the three months ended March 31, 2020 and as of and for each of the fiscal years ended December 31, 2019 and 2018. KPMG AG Wirtschaftsprüfungsgesellschaft audited the consolidated financial statements for each of the fiscal years ended December 31, 2019 and 2018. You should read this information together with our consolidated financial statements and the notes to those statements incorporated by reference in the Prospectus.
Selected Consolidated Statements of Income Data
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For the three months ended |
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For the fiscal year ended
|
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||||
|
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March 31, |
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|
|||||
In millions, except share and per share |
|
2020 |
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2019 |
|
2019 |
|
2018 |
|
amounts |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(audited) |
|
Revenue |
|
4,488 |
|
4,133 |
|
17,477 |
|
16,547 |
|
Gross profit |
|
1,411 |
|
1,265 |
|
5,396 |
|
5,155 |
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Operating income |
|
555 |
|
537 |
|
2,270 |
|
3,038 |
|
Net income attributable to shareholders of the Issuer |
|
283 |
|
271 |
|
1,200 |
|
1,982 |
|
Basic earnings per share |
|
0.95 |
|
0.88 |
|
3.96 |
|
6.47 |
|
Fully diluted earnings per share |
|
0.95 |
|
0.88 |
|
3.96 |
|
6.45 |
|
Selected Consolidated Balance Sheet Data
|
|
As of March 31, |
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As of December 31, |
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|
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|
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2019 |
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2018 |
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2020 |
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(audited, unless |
|
(audited, unless |
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In millions |
|
(unaudited) |
|
stated otherwise) |
|
stated otherwise) |
|
Total assets |
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34,072 |
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32,935 |
|
26,242 |
|
Current liabilities |
|
8,602 |
|
7,007 |
|
6,268 |
|
Total liabilities |
|
20,802 |
|
19,707 |
|
13,340 |
|
Net debt (unaudited)(1) |
|
13,172 |
|
12,774 |
|
5,400 |
|
Total equity |
|
13,270 |
|
13,227 |
|
12,902 |
|
(1) Net debt, a Non-GAAP Measure, is defined as the sum of our debt and lease liabilities less our cash and cash equivalents. Debt and lease liabilities includes the following balance sheet line items: short-term debt, short-term debt from related parties, current portion of long-term debt, current portion of long term lease liabilities, current portion of long term lease liabilities from related parties, long-term debt, less current portion, long-term lease liabilities, less current portion and long-term lease liabilities from related parties, less
current portion as presented in the consolidated balance sheets of the Issuers consolidated financial statements as of and for the fiscal years ended December 31, 2019 and 2018 and the Issuers unaudited consolidated financial statements as of and for the three months ended March 31, 2020. IFRS 16 Implementation includes lease liabilities and lease liabilities from related parties (EUR 4,705 million), other financial liabilities resulting from changes in the accounting treatment for sale-leaseback transactions (EUR 110 million) as well as the remaining balance of liabilities from capital leases in accordance with IAS 17 at December 31, 2019, which are included in lease liabilities, but have already been included in debt as of December 31, 2018 (EUR 18 million).
Selected Consolidated Statements of Cash Flow Data
|
|
For the three months ended March 31, |
|
For the fiscal year ended
|
|
||||
|
|
|
|
||||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In millions |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(audited) |
|
Net cash provided by (used in) operating activities |
|
584 |
|
76 |
|
2,567 |
|
2,062 |
|
Net cash provided by (used in) investing activities |
|
(312 |
) |
(2,016 |
) |
(3,286 |
) |
(245 |
) |
Net cash provided by (used in) financing activities |
|
121 |
|
722 |
|
(467 |
) |
(682 |
) |
Cash and cash equivalents at end of the period |
|
1,405 |
|
959 |
|
1,008 |
|
2,146 |
|
B.3 What are the key risks that are specific to the Issuer?
Risks relating to legal and regulatory matters
· We operate in a highly regulated industry such that the potential for legislative reform provides uncertainty and potential threats to our operating models and results.
· Changes in reimbursement and/or governmental regulations for health care could materially decrease our revenues and operating profit.
Risks relating to internal control and governance
· We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws.
· We have identified material weaknesses in our internal control over financial reporting that could, if not remediated, adversely affect our ability to accurately report our financial condition and results of operations.
Risks relating to our business activities and industry
· We are subject to risks associated with public health crises and epidemics/pandemics, such as the global spread of the SARS-CoV-2 pandemic which may result in increased costs and restrictions on our business activities and the business activities of our suppliers and our customers, resulting in a material adverse effect on our business, results of operations and financial condition.
· If physicians and other referral sources cease referring patients to our health care service businesses and facilities or cease purchasing or prescribing our products, our revenues would decrease.
Risks relating to taxation and accounting
· There are significant risks associated with estimating the amount of health care service revenues that we recognize that could impact the timing of our recognition of revenues or have a significant impact on our operating results and financial condition.
Risks relating to our financial condition and corporate structure
· Our indebtedness imposes restrictions. If in the case of a breach of such restrictions the indebtedness under the Notes or certain other financing arrangements were to be accelerated, there can be no assurance that our assets would be sufficient to repay in full that indebtedness and the other indebtedness of the Issuer.
SECTION C: KEY INFORMATION ON THE SECURITIES
C.1 What are the main features of the Securities?
C.1.1 Type, class and ISIN
The Notes are fixed rate notes. They are issued as Series number 6, Tranche number 1, ISIN XS2178769159.
C.1.2 Currency, denomination, par value, number of securities issued and duration
The Notes are issued in euro.The specified denomination per Note is EUR 1,000. The number of Notes is 750,000. The term of the Notes is 10 years.
C.1.3. Rights attached to the Securities
Each holder of a Note (each a Noteholder) has the right vis-à-vis the Issuer to claim payment of interest and nominal when such payments are due in accordance with the terms and conditions of the Notes (the Terms and Conditions). Unless previously redeemed, or purchased and cancelled, each Note will be redeemed at its principal amount on the Maturity Date.
Guarantee
The Notes benefit from an unconditional and irrevocable guarantee for the due payment of interest and principal and additional amounts, if any, granted by the Guarantor. The Guarantee granted by the Guarantor includes a release mechanism in certain circumstances described in the Guarantee.
Negative Pledge
The Notes contain a limited negative pledge provision.
Events of Default
The Notes provide for events of default entitling Noteholders to demand immediate redemption of the Notes.
Cross Default
The Notes provide for cross default provisions.
Change of Control
The Notes provide for the right of Noteholders to require the Issuer to repurchase the Notes upon a change of control.
Limitation of rights
Early Redemption
The Notes may be called for redemption and redeemed prior to their stated maturity for taxation reasons, or else at the option of the Issuer. The Notes may also be called for redemption and be redeemed prior to their stated maturity at the option of the Issuer for reason of minimal outstanding principal amount.
Resolutions of Noteholders: In accordance with the German Act on Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, SchVG), the Notes contain provisions pursuant to which Noteholders may agree by resolution to amend the Terms and Conditions (with the consent of the Issuer) and to decide upon certain other matters regarding the Notes. Resolutions of Noteholders properly adopted, either in a
meeting of Noteholders or by vote taken without a meeting in accordance with the Terms and Conditions, are binding upon all Noteholders. Resolutions providing for material amendments to the Terms and Conditions require a majority of not less than 75% of the votes cast. Resolutions regarding other amendments are passed by a simple majority of the votes cast.
C.1.4 Rank of the Securities in the Issuers capital structure upon insolvency
The Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, unless such obligations are accorded priority under mandatory provisions of statutory law.
C.1.5 Restrictions on free transferability of the securities
Not applicable. The Notes are freely transferable.
C.1.6 Payout policy (interest)
The Notes bear interest on their principal amount from May 29, 2020 (inclusive) at a fixed rate of 1.500 percent per annum payable in arrears on each Interest Payment Date.
Interest Payment Date shall mean May 29 each year with the first Interest Payment Date being May 29, 2021.
Maturity Date
Unless previously redeemed in whole or in part or purchased and cancelled, the Notes shall be redeemed on May 29, 2030 at its principal amount.
Yield
The yield equals 1.528 percent per annum.
C.2 Where will the Securities be traded?
Application has been made to admit the Notes to trading on the regulated market of the Luxembourg Stock Exchange.
C.3 Is there a guarantee attachted to the securities?
C.3.1 Nature and scope of the Guarantee
The Guarantor unconditionally and irrevocably guarantees the due payment of interest and principal and additional amounts, if any, for the Notes issued by the Issuer.
C.3.2 Description of the Guarantor
The legal name of the Guarantor is Fresenius Medical Care Holdings, Inc. and its LEI is XTHT88D08CLK11B3GJ82. As there is no general federal corporation law in the United States, the Guarantor is organized and existing under the Business Corporation Law of the State of New York. Its executive offices are located at 920 Winter Street, Waltham, Massachusetts, 02451-1457, United States, and its telephone number is +1(781) 699-9000.
C.3.3 Key financial information relating to the Guarantor
The following selected financial data are derived from the consolidated financial statements of the Guarantor prepared in accordance with U.S. GAAP as of and for each of the fiscal years ended December 31, 2019 and 2018. KPMG LLP audited these financial statements. You should read this information together with the Guarantors consolidated financial statements and the notes to those statements incorporated by reference in the Prospectus.
Selected Consolidated Statements of Income Data
|
|
For the fiscal year ended December 31, |
|
||
|
|
2019 |
|
2018 |
|
In US$ millions |
|
(audited) |
|
(audited) |
|
Health Care revenues, net |
|
12,531 |
|
12,592 |
|
Medical supplies revenue |
|
1,124 |
|
961 |
|
Expenses |
|
12,435 |
|
11,269 |
|
Income before income taxes |
|
1,220 |
|
2,283 |
|
Net income |
|
973 |
|
1,841 |
|
Income attributable to non-controlling interests |
|
264 |
|
264 |
|
Net income attributable to Guarantor |
|
709 |
|
1,577 |
|
Selected Consolidated Balance Sheet Data
|
|
As of December 31, |
|
||
|
|
2019 |
|
2018 |
|
|
|
(audited, unless |
|
(audited, unless |
|
In US$ millions |
|
stated otherwise) |
|
stated otherwise) |
|
Total assets |
|
25,578 |
|
20,592 |
|
Total current liabilities |
|
3,379 |
|
3,280 |
|
Total liabilities |
|
14,012 |
|
8,475 |
|
Total equity |
|
10,464 |
|
11,151 |
|
Net debt (unaudited)(1) |
|
10,293 |
|
3,081 |
|
(1) Net debt is a Non-GAAP Measure. We define net debt as the sum of the Guarantors debt and lease liabilities less the Guarantors cash and cash equivalents. The Guarantors debt and lease liabilities include the following balance sheet line items: current borrowings from affiliates, current portion of lease liabilities, short-term borrowings, current portion of long-term debt, long-term debt, noncurrent borrowings from affiliates and long-term lease liabilities as presented in the consolidated balance sheets of the Guarantors consolidated financial statements as of and for the fiscal years ended December 31, 2019 and 2018.
Selected Consolidated Statements of Cash Flow Data
|
|
For the fiscal year ended December 31, |
|
||
|
|
2019 |
|
2018 |
|
In US$ millions |
|
(audited) |
|
(audited) |
|
Net cash provided by (used in) operating activities |
|
1,504 |
|
1,480 |
|
Net cash provided by (used in) investing activities |
|
(3,116 |
) |
922 |
|
Net cash provided by (used in) financing activities |
|
237 |
|
(1,185 |
) |
Cash and cash equivalents at end of the period |
|
467 |
|
1,848 |
|
C.3.4 Most material risk factors pertaining to the Guarantor
· The Guarantor obtains substantially all of its income from its respective subsidiaries, and the holding company structure may limit the Guarantors ability to benefit from the assets of its subsidiaries. In
addition, the Guarantee will be effectively subordinated to the Guarantors debt to the extent such debt is secured by assets that are not also securing the Notes.
C.4 What are the key risks that are specific to the Securities?
Risks relating to each investors circumstances and financial condition
· The Notes may not be a suitable investment for all investors. Each potential investor in the Notes must determine the suitability of that investment in light of its own circumstances.
Risks relating to the nature and ranking of of the Notes
· The Notes are structurally subordinated to the claims of other creditors of non-guarantors within the Group.
· The Notes and the Guarantee will be effectively subordinated to secured debt of the Issuer and the Guarantor to the extent such debt is secured by assets that are not also securing the Notes.
· The Issuer and the Guarantor both rely on distributions from their subsidiaries to meet their payment obligations.
· Although the occurrence of specific change of control events will permit Holders to require redemption or repurchase of the Notes, the Issuer may not be able to redeem or repurchase such Notes.
Risks relating to the Guarantor and the Guarantee
· U.S. federal and state laws allow courts, under specific circumstances, to declare the Guarantee void and to require Noteholders to return payments received from the Guarantor.
SECTION D: KEY INFORMATION ON THE OFFER OF SECURITIES TO THE PUBLIC AND THE
ADMISSION TO TRADING ON A REGULATED MARKET
D.1 Under which conditions and timetable can I invest in this security?
Admission to trading: Application has been made to the Luxembourg Stock Exchange for the Notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange.
There will be no public offer of the Notes by the Issuer. The consent to the use of the Prospectus and the Final Terms for the subsequent resale or final placement of Notes by all financial intermediaries is given by the Issuer in relation to Luxembourg and Germany. The subsequent resale or final placement of Notes by financial intermediaries can be made during the offer period which commences on May 27, 2020 and ends on May 29, 2020.
Estimated total expenses of the issue (including expenses charged to the investor by the issuer): EUR 50,000.
D.2 Why has the Base Prospectus been produced?
D.2.1 Reasons for the offer/Use and estimated net amount of proceeds
The net proceeds of the issuance will be applied by the Issuer to meet part of its general corporate purposes, including refinancing of existing fiancial liabilities.
The estimated net proceeds of the issuance amount to EUR 746,565,000.
D.2.2 Subscription agreement
The issue of the Notes is subject to a subscription agreement dated May 27, 2020 on a firm commitment basis.
D.2.3 Material conflicts of interest
None.
German Translation of the Summary for the Individual Issue
Zusammenfassung für die Einzelemission
ABSCHNITT A: EINLEITUNG MIT WARNHINWEISEN
Diese Zusammenfassung bezieht sich auf die Tranche EUR 750.000.000 1,500 % Schuldverschreibungen fällig 29. Mai 2030 mit der ISIN XS2178769159 (die Schuldverschreibungen), ausgegeben durch die Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Straße 1, 61352 Bad Homburg vor der Höhe, Deutschland (tel.: +49-6172-609-0; Website: www.freseniusmedicalcare.com; LEI: 549300CP8NY40UP89Q40) (die Emittentin) aus dem EUR 10,000,000,000 Anleihemissionsprogramm der Emittentin (das Programm).
Die Commission de Surveillance du Secteur Financier (CSSF), 283 Route dArlon, L-1150 Luxembourg (tel. +352 26 25 1 - 1; Fax: +352 26 25 1 2601; E-Mail direction@cssf.lu) hat den Basisprospekt für das Programm (der Basisprospekt) als zuständige Behörde nach der Verordnung (EU) 2017/1129 am 19. Mai 2020 gebilligt.
Diese Zusammenfassung wurde in Übereinstimmung mit Artikel 7 der Verordnung (EU) 2017/1129 erstellt und sollte als Einleitung zu dem Basisprospekt sowie den jeweiligen Endgültigen Bedingungen verstanden werden. Der Anleger sollte sich bei jeder Entscheidung, in die Schuldverschreibungen zu investieren, auf den Basisprospekt als Ganzes, einschließlich aller durch Verweis darin aufgenommenen Dokumente, und die maßgeblichen Endgültigen Bedingungen stützen. Ein Anleger könnte gegebenenfalls das gesamte angelegte Kapital oder einen Teil davon verlieren. Für den Fall, dass vor einem Gericht Ansprüche aufgrund der in dem Basisprospekt oder den maßgeblichen Endgültigen Bedingungen enthaltenen Informationen geltend gemacht werden, könnte der als Kläger auftretende Anleger nach nationalem Recht die Kosten für die Übersetzung dieses Basisprospekts und der jeweiligen Endgültigen Bedingungen vor Prozessbeginn zu tragen haben. Zivilrechtlich haften die Emittentin und die Garantiegeberin nur, wenn sie die Zusammenfassung samt etwaiger Übersetzungen vorgelegt und übermittelt haben, und dies auch nur für den Fall, dass die Zusammenfassung, wenn sie zusammen mit dem Basisprospekt und den jeweiligen Endgültigen Bedingungen gelesen wird, irreführend, unrichtig oder widersprüchlich ist oder dass sie, wenn sie zusammen mit dem Basisprospekt und den jeweiligen Endgültigen Bedingungen gelesen wird, nicht die Basisinformationen vermittelt, die in Bezug auf Anlagen in die Schuldverschreibungen für die Anleger eine Entscheidungshilfe darstellen würden.
ABSCHNITT B: BASISINFORMATIONEN ÜBER DIE EMITTENTIN
B.1 Wer ist die Emittentin der Wertpapiere?
B.1.1 Sitz und Rechtsform der Emittentin, ihre LEI, für sie geltendes Recht und Land der Eintragung
Die Emittentin ist eine nach deutschem Recht errichtete und deutschem Recht unterliegende Kommanditgesellschaft auf Aktien (KGaA) mit einer Aktiengesellschaft (AG) als alleiniger Komplementärin und mit ihrem satzungsmäßigen Sitz in Hof an der Saale, Deutschland.Die LEI der Emittentin lautet 549300CP8NY40UP89Q40.
B.1.2 Haupttätigkeiten
Die Haupttätigkeit der Emittentin besteht darin, als Holdinggesellschaft für ihre Tochtergesellschaften zu fungieren, die Dialysedienstleistungen und damit verbundene Dienstleistungen für Personen, die an Nierenerkrankungen im Endstadium leiden, sowie andere Gesundheitsdienstleistungen erbringen und die eine Vielzahl von medizinischen Produkten entwickeln und herstellen, die sowohl Dialyse- als auch Nicht-Dialyseprodukte umfassen.
B.1.3 Hauptanteilseigner
Zum 11. Mai 2020 bestand das Grundkapital der Emittentin aus 304,492,501 Stammaktien. Die Fresenius SE & Co. KGaA (Fresenius SE) hielt zum 11. Mai 2020 32,2% der Stammaktien der Emittentin. Die Fresenius SE ist auch Eigentümerin von 100 % des ausstehenden Aktienkapitals der persönlich haftenden Gesellschafterin der Emittentin und hat das alleinige Recht, den Aufsichtsrat der persönlich haftenden Gesellschafterin der Emittentin
zu bestimmen. Die Else Kröner-Fresenius-Stiftung ist alleinige Aktionärin der Fresenius Management SE, der Komplementärin der Fresenius SE, und hat das alleinige Recht, den Aufsichtsrat der Fresenius Management SE zu wählen. Darüber hinaus hielt die Else Kröner-Fresenius Stiftung zum 31. Dezember 2019 26,6% des Aktienkapitals der Fresenius SE.
B.1.4 Identität der Hauptgeschäftsführer
Die alleinige persönlich haftende Gesellschafterin der Emittentin ist die Fresenius Medical Care Management AG (die pHG). Der Vorstand der pHG besteht aus Rice Powell, Helen Giza, William Valle, Olaf Schermeier, Kent Wanzek, Harry de Wit, Katarzyna Mazur-Hofsäß und Franklin W. Maddux.
B.1.5 Identität des Abschlussprüfers
Bis zum 31. Dezember 2019 war die KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Deutschland, Abschlussprüferin der Konzernabschlüsse der Emittentin für die Geschäftsjahre endend zum 31. Dezember 2019 und 2018.
B.2 Welches sind die wesentlichen Finanzinformationen über die Emittentin?
Die folgenden ausgewählten Finanzinformationen stammen aus den nach IFRS aufgestellten Konzernabschlüssen der Emittentin zum und für die drei Monate endend zum 31. März 2020 sowie für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre. KPMG AG Wirtschaftsprüfungsgesellschaft hat die Konzernabschlüsse für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre geprüft. Diese Informationen sollten zusammen mit unseren Konzernabschlüssen und den Anmerkungen zu diesen Abschlüssen gelesen werden, die mittels Verweis in den Prospekt aufgenommen wurden.
Ausgewählte Zahlen aus der Konzern-Gewinn-und Verlustrechlung |
|
|
|
|
|
|
|||
|
|
|
|
|
|
||||
|
|
Für die drei Monate endend |
|
Für das Geschäftsjahr endend |
|
||||
|
|
zum 31.März |
|
zum 31. Dezember |
|
||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In Mio. , mit Ausnahme Beträge je Aktie |
|
(ungeprüft) |
|
(ungeprüft) |
|
(geprüft) |
|
(geprüft) |
|
Umsatz |
|
4.488 |
|
4.133 |
|
17.477 |
|
16.547 |
|
Bruttoergebnis vom Umsatz |
|
1.411 |
|
1.265 |
|
5.396 |
|
5.155 |
|
Operatives Ergebnis |
|
555 |
|
537 |
|
2.270 |
|
3.038 |
|
Konzernergebnis, das auf die Anteilseigner der Emittentin entfällt |
|
283 |
|
271 |
|
1.200 |
|
1.982 |
|
Ergebnis je Aktie |
|
0,95 |
|
0,88 |
|
3,96 |
|
6,47 |
|
Ergebnis je Aktie bei voller Verwässerung |
|
0,95 |
|
0,88 |
|
3,96 |
|
6,45 |
|
Ausgewählte Zahlen aus der Konzern-Bilanz
|
|
|
|
|
|
||
|
|
Zum 31. März |
|
Zum 31. Dezember |
|
||
|
|
|
|
|
|
2018 |
|
|
|
|
|
2019 |
|
(geprüft, |
|
|
|
|
|
(geprüft, soweit |
|
soweit nicht |
|
|
|
2020 |
|
nicht anders |
|
anders |
|
In Mio. |
|
(ungeprüft) |
|
angegeben) |
|
angegeben) |
|
Summe Vermögenswerte |
|
34.072 |
|
32.935 |
|
26.242 |
|
Summe kurzfristige Verbindlichkeiten |
|
8.602 |
|
7.007 |
|
6.268 |
|
Summe Verbindlichkeiten |
|
20.802 |
|
19.707 |
|
13.340 |
|
Nettofinanzverbindlichkeiten (ungeprüft)(1) |
|
13.172 |
|
12.774 |
|
5.400 |
|
Summe Eigenkapital |
|
13.270 |
|
13.270 |
|
12.902 |
|
(1) Nettofinanzverbindlichkeiten, eine Non-GAAP-Kennzahl, ist definiert als die Summe unserer Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen abzüglich unserer flüssigen Mittel. Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen umfassen die folgenden Bilanzpositionen: Kurzfristige Finanzverbindlichkeiten, kurzfristige Finanzverbindlichkeiten gegenüber nahestehenden Unternehmen, kurzfristig fälliger Anteil der langfristigen Finanzverbindlichkeiten, kurzfristig fälliger Anteil der langfristigen Verbindlichkeiten aus Leasingverhältnissen, kurzfristig fälliger Anteil der langfristigen Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen, langfristige Finanzverbindlichkeiten abzüglich des kurzfristig fälligen Anteils, langfristige Verbindlichkeiten aus Leasingverhältnissen abzüglich des kurzfristig fälligen Anteils und langfristige Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen abzüglich des kurzfristigen Anteils, wie sie in den konsolidierten Bilanzen der Konzernabschlüsse der Emittentin zum und für die am 31. Dezember 2019 und 2018 endenden Geschäftsjahre und dem ungeprüften Konzernabschluss der Emittentin zum und für die drei Monate endend zum 31. März 2020 dargestellt sind. Die Einführung von IFRS 16 umfasst Verbindlichkeiten aus Leasingverhältnissen und Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen (4.705 Millionen EUR), sonstige finanzielle Verbindlichkeiten aus der Änderung der bilanziellen Behandlung von Sale-and-Leaseback-Transaktionen (110 Millionen EUR) sowie zum 31. Dezember 2019 verbleibende Verbindlichkeiten aus aktivierten Leasingverträgen gemäß IAS 17, welche in Verbindlichkeiten aus Leasingverhältnissen ausgewiesen sind, zum 31. Dezember 2019 aber bereits in den Finanzverbindlichkeiten ausgewiesen waren (18 Millionen EUR).
Ausgewählte Zahlen aus der Konzern-Kapitalflussrechnung
|
|
Für die drei Monate endend |
|
Für das Geschäftsjahr endend |
|
||||
|
|
zum 31. März |
|
zum 31. Dezember |
|
||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In Mio. |
|
(ungeprüft) |
|
(ungeprüft) |
|
(geprüft) |
|
(geprüft) |
|
Cash Flow aus betrieblicher Geschäftstätigkeit |
|
584 |
|
76 |
|
2.567 |
|
2.062 |
|
Cash Flow aus Investitionstätigkeit |
|
(312 |
) |
(2.016 |
) |
(3.286 |
) |
(245 |
) |
Cash Flow aus Finanzierungstätigkeit |
|
121 |
|
722 |
|
(467 |
) |
(682 |
) |
Flüssige Mittel am Ende des Zeitraums |
|
1.405 |
|
959 |
|
1.008 |
|
2.146 |
|
B.3 Welches sind die zentralen Risiken, die für die Emittentin spezifisch sind?
Risiken im Zusammenhang mit rechtlichen und regulatorischen Themen
· Wir sind in einer stark regulierten Industrie tätig, sodass mögliche Reformen der Gesetzgebung einen Unsicherheitsfaktor und eine Gefahr für unser Geschäftsmodell und unsere Ergebnisse darstellen könnten.
· Änderungen im Vergütungssystem und/oder den gesetzlichen Vorschriften des Gesundheitswesens könnten zu einem erheblichen Rückgang des Umsatzes und des operativen Gewinns führen.
Risiken in Bezug auf interne Kontrolle und Unternehmensführung
· Wir sind in vielen verschiedenen Rechtsordnungen tätig, und wir könnten durch eine Verletzung des U.S. Foreign Corrupt Practices Act und weltweit vergleichbarer anderer Anti-Korruptions-Gesetze beeinträchtigt werden.
· Wir haben wesentliche Schwachstellen in unserer internen Kontrolle der Finanzberichterstattung festgestellt, die, wenn sie nicht beseitigt werden, unsere Fähigkeit zur korrekten Berichterstattung über unsere finanzielle Lage und unsere Betriebsergebnisse nachteilig beeinflussen könnten.
Risiken in Bezug auf unsere Geschäftstätigkeiten und unsere Branche
· Wir sind Risiken ausgesetzt, die mit Krisen im Bereich der öffentlichen Gesundheit und Epidemien/Pandemien verbunden sind, wie z.B. der weltweiten Ausbreitung der SARS-CoV-2-Pandemie, die zu erhöhten Kosten und Einschränkungen unserer Geschäftstätigkeit und der Geschäftstätigkeit unserer Lieferanten und Kunden führen kann, was sich erheblich negativ auf unsere Geschäfts-, Betriebsund Finanzlage auswirken kann.
· Sollten Ärzte und andere Dienstleister keine Patienten mehr an unsere Gesundheitsdienstleistungseinrichtungen oder Kliniken überweisen oder unsere Erzeugnisse nicht mehr erwerben oder verschreiben, würde dies einen Rückgang der Umsatzerlöse zur Folge haben.
Risiken in Bezug auf Steuern und Rechnungslegung
· Es bestehen erhebliche Risiken im Zusammenhang mit der Schätzung der Höhe der von uns erfassten Umsätze aus Gesundheitsdienstleistungen, die sich auf den Zeitpunkt der Umsatzrealisierung auswirken oder einen wesentlichen Einfluss auf die Ertrags- und Finanzlage haben könnten.
Risiken in Bezug auf unsere Finanzlage und Unternehmensstruktur
· Unsere Verschuldung erlegt uns Beschränkungen auf. Sollte im Falle eines Verstoßes gegen diese Beschränkungen die Rückzahlung unter den Schuldverschreibungen oder bestimmten andere Finanzierungsformen beschleunigt werden, kann nicht garantiert werden, dass unsere Aktiva ausreichen werden, um diese Verschuldung und die sonstige Verschuldung der Emittentin vollständig zu tilgen.
ABSCHNITT C: BASISINFORMATIONEN ÜBER DIE WERTPAPIERE
C.1 Welches sind die wichtigsten Merkmale der Wertpapiere?
C.1.1 Art, Gattung und ISIN
Die Schuldverschreibungen sind fest verzinsliche Schuldverschreibungen. Sie werden unter der Seriennummer 6, Tranchennummer 1, ISIN XS2178769159 ausgegeben.
C.1.2 Währung, Stückelung, Nennwert, Anzahl der begebenen Wertpapiere und Laufzeit
Die Schuldverschreibungen sind in Euro begeben. Die festgelegte Stückelung je Schuldverschreibung ist EUR 1.000. Die Anzahl der Schuldverschreibungen beträgt 750.000. Die Laufzeit der Schuldverschreibungen beträgt 10 Jahre.
C.1.3 Mit den Wertpapieren verbundene Rechte
Jeder Inhaber von Schuldverschreibungen (jeweils ein Gläubiger) hat aus ihnen das Recht, Zahlungen von Zinsen und Kapital von der Emittentin zu verlangen, wenn diese Zahlungen gemäß den Emissionsbedingungen der Schuldverschreibungen (die Emissionsbedingungen) fällig sind. Soweit nicht zuvor bereits zurückgezahlt oder angekauft und entwertet, wird jede Schuldverschreibung am Fälligkeitstag zum Nennbetrag zurückgezahlt.
Garantie
Die Garantiegeberin garantiert unbedingt und unwiderruflich die ordnungsgemäße und pünktliche Zahlung von Zinsen und Kapital und etwaigen zusätzlichen Beträgen auf die Schuldverschreibungen. Die von der Garantiegeberin gewährte Garantie enthält Freigabemechanismen bei Eintritt von bestimmten, in der Garantie dargelegten Umständen.
Negativverpflichtung
Die Schuldverschreibungen enthalten eine eingeschränkte Negativverpflichtung.
Kündigungsgründe
Die Schuldverschreibungen sehen Kündigungsgründe vor, die die Gläubiger berechtigen, die unverzügliche Rückzahlung der Schuldverschreibungen zu verlangen.
Cross-Default
Die Schuldverschreibungen enthalten eine Cross-Default-Bestimmung.
Kontrollwechsel
Die Schuldverschreibungen enthalten ein Recht der Gläubiger, eine vorzeitige Rückzahlung von der Emittentin im Falle eines Kontrollwechsels zu verlangen.
Beschränkung von Rechten
Vorzeitige Rückzahlung
Die Schuldverschreibungen können vor Ablauf ihrer festgelegten Laufzeit aus steuerlichen Gründen oder ansonsten nach Wahl der Emittentin gekündigt und vorzeitig zurückgezahlt werden. Die Schuldverschreibungen können ferner nach Wahl der Emittentin bei geringfügig ausstehendem Nennbetrag gekündigt und vorzeitig zurückgezahlt werden.
Beschlüsse der Gläubiger: In Übereinstimmung mit dem Gesetz über Schuldverschreibungen aus Gesamtemissionen (SchVG) enthalten die Schuldverschreibungen Bestimmungen, nach denen die Gläubiger der Schuldverschreibungen (mit Zustimmung der Emittentin) eine Änderung der Emissionsbedingungen oder sonstige Maßnahmen im Hinblick auf die Schuldverschreibungen beschließen können. Ordnungsgemäß entweder in einer Gläubigerversammlung oder im Wege einer Abstimmung ohne Versammlung gemäß den Emissionsbedingungen gefasste Beschlüsse der Gläubiger sind für alle Gläubiger verbindlich. Beschlüsse, welche Änderungen wesentlicher Inhalte der Emissionsbedingungen vorsehen, bedürfen einer Mehrheit von mindestens 75% der teilnehmenden Stimmrechte. Beschlüsse, welche andere Änderungen vorsehen, werden mit einfacher Mehrheit der teilnehmenden Stimmrechte gefasst.
C.1.4 Rang der Wertpapiere in der Kapitalstruktur der Emittentin im Fall einer Insolvenz
Die Schuldverschreibungen begründen nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende Bestimmungen ein Vorrang eingeräumt wird.
C.1.5 Beschränkungen der freien Handelbarkeit der Wertpapiere
Entfällt. Die Handelbarkeit der Schuldverschreibungen ist nicht beschränkt.
C.1.6 Angaben zur Ausschüttungspolitik (Verzinsung)
Die Schuldverschreibungen werden ab dem 29. Mai 2020 (einschließlich) zu einem festen Zinssatz von jährlich 1,500 Prozent bezogen auf ihren Nennbetrag verzinst. Die Zinsen sind nachträglich an jedem Zinszahlungstag zahlbar.
Zinszahlungstag bezeichnet den 29. Mai eines jeden Jahres; der erste Zinszahlungstag ist der 29. Mai 2021.
Fälligkeitstag
Soweit nicht zuvor bereits ganz oder teilweise zurückgezahlt oder angekauft und entwertet, werden die Schuldverschreibungen am 29. Mai 2030 zu ihrem Nennbetrag zurückgezahlt.
Rendite
Die Rendite entspricht 1,528% per annum.
C.2 Wo werden die Wertpapiere gehandelt?
Für die Schuldverschreibungen ist ein Antrag auf Zulassung zum Börsenhandel im regulierten Markt der Luxemburger Wertpapierbörse gestellt worden.
C.3 Wird für die Wertpapiere eine Garantie gestellt?
C.3.1 Art und Umfang der Garantie
Die Garantiegeberin garantiert in Bezug auf die von der Emittentin ausgegebenen Schuldverschreibungen uneingeschränkt und unwiderruflich die ordnungsgemäße Zahlung von Zinsen und des Nominalbetrages sowie zusätzlicher Beträge, falls solche anfallen.
C.3.2 Beschreibung der Garantiegeberin
Der juristische Name der Garantiegeberin ist Fresenius Medical Care Holdings, Inc. und ihr LEI ist XTHT88D08CLK11B3GJ82. Da in den USA kein allgemeines Gesellschaftsrecht auf Bundesebene existiert, ist sie organisiert und existiert unter dem Business Corporation Law des Bundesstaates New York. Ihre Geschäftsräume befinden sich in 920 Winter Street, Waltham, Massachusetts, 02451-1457, USA, und ihre Telefonnummer lautet +1 (781) 699-9000.
C.3.3 Wesentliche Finanzinformationen über die Garantiegeberin
Die folgenden ausgewählten Finanzinformationen stammen aus den geprüften nach U.S. GAAP aufgestellten Konzernabschlüssen der Garantiegeberin zum und für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre. KPMG LLP hat diese Konzernabschlüsse geprüft. Diese Informationen sollten zusammen mit den Konzernabschlüssen der Garantiegeberin und den Anmerkungen zu diesen Abschlüssen gelesen werden, die mittels Verweis in den Prospekt aufgenommen wurden.
Ausgewählte Zahlen aus der Konzern-Gewinn- und Verlustrechnung
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Für das Geschäftsjahr endend zum |
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31. Dezember |
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2019 |
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2018 |
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In Mio. US$ |
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(geprüft) |
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(geprüft) |
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Umsatzerlöse aus Gesundheitsdienstleistungen, netto |
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12.531 |
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12.592 |
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Umsatzerlöse aus medizinischem Zubehör |
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1.124 |
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961 |
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Aufwendungen |
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12.435 |
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11.269 |
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Ergebnis vor Ertragsteuern |
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1.220 |
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2.283 |
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Ergebnis |
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973 |
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1.841 |
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Auf nicht beherrschende Anteile entfallendes Ergebnis |
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264 |
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264 |
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Auf die Garantiegeberin entfallendes Ergebnis |
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709 |
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1.577 |
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Ausgewählte Zahlen aus der Konzern-Bilanz
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Zum 31. Dezember |
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2019 |
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2018 |
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(geprüft, soweit |
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(geprüft, soweit |
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nicht anders |
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nicht anders |
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In Mio. US$ |
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angegeben) |
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angegeben) |
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Summe Vermögenswerte |
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25.578 |
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20.592 |
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Summe kurzfristige Verbindlichkeiten |
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3.379 |
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3.280 |
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Summe Verbindlichkeiten |
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14.012 |
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8.475 |
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Summe Eigenkapital |
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10.464 |
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11.151 |
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Nettofinanzverbindlichkeiten (ungeprüft)(1) |
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10.293 |
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3.081 |
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(1) Nettofinanzverbindlichkeiten ist eine Non-GAAP-Kennzahl. Wir definieren Nettofinanzverbindlichkeiten als die Summe der Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen der Garantiegeberin abzüglich der flüssigen Mittel der Garantiegeberin. Die Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen der Garantiegeberin umfassen die folgenden Bilanzpositionen: kurzfristige Darlehen gegenüber nahestehenden Unternehmen, kurzfristig fälliger Anteil der Verbindlichkeiten
aus Leasingverhältnissen, kurzfristige Darlehen, kurzfristig fälliger Anteil der langfristigen Finanzverbindlichkeiten, langfristige Finanzverbindlichkeiten, langfristige Darlehen gegenüber nahestehenden Unternehmen und langfristige Verbindlichkeiten aus Leasingverhältnissen, wie sie in den konsolidierten Bilanzen der konsolidierten Jahresabschlüsse der Garantiegeberin zum und für die am 31. Dezember 2019 und 2018 endenden Geschäftsjahre dargestellt sind.
Ausgewählte Zahlen aus der Konzern-Kapitalflussrechnung
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Für das Geschäftsjahr endend zum |
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31. Dezember |
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2019 |
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2018 |
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In Mio. US$ |
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(geprüft) |
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(geprüft) |
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Cash Flow aus betrieblicher Geschäftstätigkeit |
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1.504 |
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1.480 |
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Cash Flow aus Investitionstätigkeit |
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(3.116 |
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922 |
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Cash Flow aus Finanzierungstätigkeit |
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237 |
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(1.185 |
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Flüssige Mittel am Ende des Jahres |
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467 |
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1.848 |
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C.3.4 Die wesentlichsten Risikofraktoren, die für die Garantiegeberin spezifisch sind
· Die Garantiegeberin bezieht im Wesentlichen alle ihre Erträge aus ihren jeweiligen Tochtergesellschaften, und ihre Struktur als Holdinggesellschaft kann die Fähigkeit der Garantiegeberin einschränken, von den Vermögenswerten ihrer Tochtergesellschaften zu profitieren. Zudem ist die Garantie strukturell nachrangig gegenüber den Verbindlichkeiten der Garantiegeberin, soweit diese Verbindlichkeiten durch Vermögenswerte besichert sind, die nicht zugleich die Schuldverschreibungen besichern.
C.4 Welches sind die zentralen Risiken, die für die Wertpapiere spezifisch sind?
Risiken in Bezug auf die persönlichen Verhältnisse und die Fanzlage jedes Investors
· Die Schuldverschreibungen sind möglicherweise nicht für alle Anleger als Anlage geeignet. Jeder potenzielle Anleger in den Schuldverschreibungen muss die Eignung dieser Anlage vor dem Hintergrund seiner persönlichen Verhältnisse prüfen.
Risiken in Bezug auf die Beschaffenheit und den Rang der Wertpapiere
· Die Schuldverschreibungen sind strukturell nachrangig gegenüber Ansprüchen anderer Gläubiger gegenüber Gesellschaften der Gruppe, die keine Garantien zugunsten der Gläubiger der Schuldverschreibungen abgegeben haben.
· Die Schuldverschreibungen und die Garantie sind effektiv nachrangig gegenüber Verbindlichkeiten der Gruppe, soweit diese Verbindlichkeiten durch Vermögenswerte besichert sind, die nicht zugleich die Schuldverschreibungen besichern.
· Die Emittentin und die Garantiegeberin sind beide auf Ausschüttungen ihrer Tochtergesellschaften angewiesen, um ihren Zahlungsverpflichtungen nachzukommen.
· Auch wenn die Gläubiger bei Eintritt bestimmter Kontrollwechselereignisse berechtigt sind, die Rückzahlung bzw. den Rückkauf der Schuldverschreibungen zu verlangen, könnte die Emittentin nicht in der Lage sein, die Schuldverschreibungen zurückzuzahlen bzw. zurückzukaufen.
Risiken im Hinblick auf die Garantiegeberin und die Garantie
· U.S. Bundesrecht und Landesrecht erlaubt Gerichten, unter bestimmten Umständen, die Garantie für nichtig zu erklären und Gläubiger zur Rückzahlung von Zahlungen zu verpflichten, die sie von der Garantiegeberin erhalten haben.
ABSCHNITT D: BASISINFORMATIONEN ÜBER DAS ÖFFENTLICHE ANGEBOT VON WERTPAPIEREN UND/ODER DIE ZULASSUNG ZUM HANDEL AN EINEM GEREGELTEN MARKT
D.1 Zu welchen Konditionen und nach welchem Zeitplan kann ich in dieses Wertpapier investieren?
Zulassung zum Handel: Bei der Luxemburger Börse wurde ein Antrag auf Notierung der Schuldverschreibungen in der Official List der Luxemburger Börse und auf Zulassung der Schuldverschreibungen zum Handel am geregelten Markt der Luxemburger Börse gestellt.
Die Schuldverschreibungen werden durch die Emittentin nicht öffentlich angeboten. Die Zustimmung zu der Verwendung des Prospekts und der Endgültigen Bedingungen zu der späteren Weiterveräußerung und der endgültigen Platzierung der Schuldverschreibungen durch alle Finanzintermediäre wird von der Emittentin in Bezug auf Luxemburg und Deutschland erteilt. Die spätere Weiterveräußerung und endgültige Platzierung der Wertpapiere durch Finanzintermediäre kann während der Angebotsfrist erfolgen, die am 27. Mai 2020 beginnt und am 29. Mai 2020 endet.
Geschätzte Gesamtkosten der Emission und/oder des Angebots (einschließlich der den Anlegern von der Emittentin oder dem Anbieter berechneten Kosten: EUR 50.000.
D.2 Weshalb wurde dieser Basisprospekt erstellt?
D.2.1 Zweckbestimmung der Erlöse und geschätzte Nettoerlöse
Die Nettoerlöse der Emission werden für allgemeine Geschäftsaktivitäten der Emittentin verwendet, einschließlich der Refinanzierung bestehender Verbindlichkeiten.
Die geschätzten Nettoerlöse der Emission betragen EUR 746.565.000.
D.2.2 Übernahmevertrag
Die Emission der Schuldverschreibungen ist Gegenstand eines verbindlichen Übernahmevertrages vom 27. Mai 2020.
D.2.3 Wesentliche Interessenkonflikte
Keine.
MiFID II Product Governance Solely for the purposes of each manufacturers product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties, professional clients and retail clients, each as defined in Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended (MiFID II); (ii) all channels for distribution to eligible counterparties and professional clients are appropriate; and (iii) the following channels for distribution of the Notes to retail clients are appropriate - investment advice, portfolio management and non-advised sales. Any person subsequently offering, selling or recommending the Notes (each a Distributor) should take into consideration the manufacturers target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers target market assessment) and determining appropriate distribution channels, subject to the distributors suitability and appropriateness obligations under MiFID II, as applicable. The targeted investors are expected to have (1) at least informed knowledge and/or experience with financial products, (2) the ability to bear losses resulting from interest rate changes and no capital loss bearing capacity if held to maturity, (3) a medium risk profile (4) a general capital formation/ asset optimization as investment objective and (5) a long term investment horizon.
The Final Terms of Notes will be displayed on the website of the Luxembourg Stock Exchange (www.bourse.lu).
May 27, 2020
27. Mai 2020
FINAL TERMS
ENDGÜLTIGE BEDINGUNGEN
Fresenius Medical Care AG & Co. KGaA
EUR 500,000,000 1.000 per cent. Notes due May 29, 2026
EUR 500.000.000 1,000 % Schuldverschreibungen fällig 29. Mai 2026
Series: 5, Tranche 1
Seriennummer: 5, Tranche 1
issued pursuant to the
begeben aufgrund des
EUR 10,000,000,000
Debt Issuance Program
Dated May 19, 2020
vom 19. Mai 2020
of
der
Fresenius Medical Care AG & Co. KGaA
Issue Price: 99.405%
Ausgabepreis: 99,405%
Issue Date May 29, 2020
Begebungstag: 29. Mai 2020
These are the Final Terms of an issue of Notes under the EUR 10,000,000,000 Debt Issuance Program of Fresenius Medical Care AG & Co. KGaA (the Program). These Final Terms have been prepared for the purpose of Article 8(5) in conjunction with Article 25(4) of the Regulation (EU) 2017/1129 of the European Parliament and of
the Council of June 14, 2017, as amended, and must be read in conjunction with the Base Prospectus dated May 19, 2020 (the Prospectus). Full information on Fresenius Medical Care AG & Co. KGaA and the offer of the Notes is only available on the basis of the combination of the Prospectus and these Final Terms. The Prospectus and any supplement thereto are available for viewing in electronic form on the website of the Luxembourg Stock Exchange (www.bourse.lu). Copies may be obtained free of charge from Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Str. 1, 61352 Bad Homburg vor der Höhe, Germany. A summary of the individual issue of the Notes is annexed to these Final Terms.
Diese Endgültigen Bedingungen enthalten Angaben zur Emission von Schuldverschreibungen unter dem EUR 10.000.000.000 Debt Issuance Programm der Fresenius Medical Care AG & Co. KGaA (das Programm). Diese Endgültigen Bedingungen wurden für die Zwecke des Artikels 8 Abs. 5 i.V.m. Artikel 25 Abs. 4 der Verordnung (EU) 2017/1129 des Europäischen Parlaments und des Rates vom 14. Juni 2017, in der jeweils geltenden Fassung, abgefasst und sind in Verbindung mit dem Basisprospekt vom 19. Mai 2020 (der Prospekt) zu lesen. Vollständige Informationen über Fresenius Medical Care AG & Co. KGaA und das Angebot der Schuldverschreibungen sind nur verfügbar, wenn die Endgültigen Bedingungen und der Prospekt zusammengenommen werden. Der Prospekt sowie jeder Nachtrag können in elektronischer Form auf der Internetseite der Luxemburger Börse (www.bourse.lu). Kostenlose Kopien sind erhältlich unter Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Str. 1, 61352 Bad Homburg vor der Höhe, Deutschland. Eine Zusammenfassung der einzelnen Emission der Schuldverschreibungen ist diesen Endgültigen Bedingungen beigefügt.
Part I.: TERMS AND CONDITIONS
Teil I: EMISSIONSBEDINGUNGEN
The Terms and Conditions applicable to the Notes (the Conditions) and the English language translation thereof, are as set out below.
Die für die Schuldverschreibungen geltenden Emissionsbedingungen (die Bedingungen) sowie die englischsprachige Übersetzung sind wie nachfolgend aufgeführt.
TERMS AND CONDITIONS |
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EMISSIONSBEDINGUNGEN |
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§ 1 |
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§ 1 |
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(CURRENCY, DENOMINATION, FORM) |
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(WÄHRUNG, STÜCKELUNG, FORM) |
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(1) |
Currency; Denomination. |
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(1) |
Währung; Stückelung. |
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This series of Notes (the Notes) of Fresenius Medical Care AG & Co. KGaA (also referred to as the Issuer) is being issued in euro (the Specified Currency) in the aggregate principal amount (subject to § 1(3)) of EUR 500,000,000 (in words: euro five hundred million) in the denomination of EUR 1,000 (the Specified Denomination). |
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Diese Serie von Schuldverschreibungen (die Schuldverschreibungen) der Fresenius Medical Care AG & Co. KGaA (auch als die Emittentin bezeichnet) wird in Euro (die Festgelegte Währung) im Gesamtnennbetrag (vorbehaltlich § 1(3)) von EUR 500.000.000 (in Worten: Euro fünfhundert Millionen) in einer Stückelung von EUR 1.000 (die Festgelegte Stückelung) begeben. |
(2) |
Form. |
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(2) |
Form. |
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The Notes are being issued in bearer form. |
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Die Schuldverschreibungen lauten auf den Inhaber. |
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(3) |
Temporary Global Note Exchange. |
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(3) |
Vorläufige Globalurkunde Austausch. |
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(a) The Notes are initially represented by a temporary global note (the Temporary Global Note) without coupons. The Temporary Global Note will be exchangeable for Notes in Specified Denominations represented by a permanent global note (the Permanent Global Note and together with the Temporary Global Note, the Global Notes) without coupons. The details of such exchange shall be entered in the records of the ICSDs (as defined below). The Global Notes shall each be signed manually by authorized signatories of the Issuer and shall each be authenticated by or on behalf of the Fiscal Agent. Definitive Notes and interest coupons will not be issued. |
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(a) Die Schuldverschreibungen sind anfänglich durch eine vorläufige Globalurkunde (die vorläufige Globalurkunde) ohne Zinsscheine verbrieft. Die vorläufige Globalurkunde wird gegen Schuldverschreibungen in den Festgelegten Stückelungen, die durch eine Dauerglobalurkunde (die Dauerglobalurkunde und zusammen mit der vorläufigen Globalurkunde, die Globalurkunden) ohne Zinsscheine verbrieft sind, ausgetauscht. Die Einzelheiten eines solchen Austausches werden in die Aufzeichnungen der ICSDs (wie nachstehend definiert) aufgenommen. Die Globalurkunden tragen jeweils die eigenhändigen Unterschriften ordnungsgemäß bevollmächtigter Vertreter der Emittentin und sind jeweils von der Emissionsstelle oder in deren Namen mit einer Kontrollunterschrift versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben. |
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(b) The Temporary Global Note shall be exchanged for the Permanent Global Note on a date (the Exchange Date) not earlier than 40 days after the date of issue of the Notes. Such exchange shall only be made upon delivery of certifications to the effect that the beneficial owner or owners of the Notes is not a U.S. person (other than certain financial institutions or certain persons holding Notes through such financial institutions). Payment of interest on Notes represented by a Temporary Global Note will be made only after delivery of such certifications. A separate certification shall be required in respect of each such payment of interest. Any such certification received on or after the 40th |
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(b) Die vorläufige Globalurkunde wird an einem Tag (der Austauschtag) gegen die Dauerglobalurkunde ausgetauscht, der nicht weniger als 40 Tage nach dem Tag der Begebung der Schuldverschreibungen liegt. Ein solcher Austausch darf nur nach Vorlage von Bescheinigungen erfolgen, wonach der oder die wirtschaftlichen Eigentümer der Schuldverschreibungen keine U.S.-Personen sind (ausgenommen bestimmte Finanzinstitute oder bestimmte Personen, die Schuldverschreibungen über solche Finanzinstitute halten). Solange die Schuldverschreibungen durch eine vorläufige Globalurkunde verbrieft sind, werden Zinszahlungen erst nach Vorlage dieser Bescheinigungen vor |
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day after the date of issue of the Notes will be treated as a request to exchange the Temporary Global Note pursuant to subparagraph (b) of this § 1(3). Any Notes delivered in exchange for the Temporary Global Note shall be delivered only outside of the United States (as defined in § 1(6)). |
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genommen. Eine gesonderte Bescheinigung ist für jede solche Zinszahlung erforderlich. Jede Bescheinigung, die am oder nach dem 40. Tag nach dem Tag der Begebung der Schuldverschreibungen eingeht, wird als ein Ersuchen behandelt werden, diese vorläufige Globalurkunde gemäß Absatz (b) dieses § 1(3) auszutauschen. Schuldverschreibungen, die im Austausch für die vorläufige Globalurkunde geliefert werden, dürfen nur außerhalb der Vereinigten Staaten (wie in § 1(6) definiert) geliefert werden. |
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(4) |
Clearing System. |
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(4) |
Clearingsystem. |
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Each Global Note will be kept in custody by or on behalf of the Clearing System until all obligations of the Issuer under the Notes have been satisfied. Clearing System means each of the following: Clearstream Banking S.A. Luxembourg (CBL) and Euroclear Bank SA/NV Brussels as operator of the Euroclear System (Euroclear) and any successor in such capacity. International Central Securities Depositary or ICSD means each of CBL and Euroclear (together, the ICSDs). |
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Die Globalurkunde wird solange von einem oder im Namen eines Clearingsystems verwahrt, bis sämtliche Verbindlichkeiten der Emittentin aus den Schuldverschreibungen erfüllt sind. Clearingsystem bedeutet jeweils folgendes: Clearstream Banking S.A., Luxemburg (CBL) und Euroclear Bank SA/NV Brüssel, als Betreiberin des Euroclear Systems (Euroclear) sowie jeder Funktionsnachfolger. International Central Securities Depositary oder ICSD bezeichnet jeweils CBL und Euroclear (zusammen die ICSDs). |
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The Notes are issued in new global note (NGN) form and are kept in custody by a common safekeeper on behalf of both ICSDs. |
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Die Schuldverschreibungen werden in Form einer New Global Note (NGN) ausgegeben und von einer gemeinsamen Verwahrstelle im Namen beider ICSDs verwahrt. |
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The principal amount of Notes represented by the Global Note shall be the aggregate amount from time to time entered in the records of both ICSDs. The records of the ICSDs (which expression means the records that each ICSD holds for its customers which reflect the amount of such customers interest in the Notes) shall be conclusive evidence of the principal amount of Notes represented by the Global Note and, for these purposes, a statement issued by an ICSD stating the principal amount of Notes so represented at any time shall be conclusive evidence |
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Der Nennbetrag der durch die Globalurkunde verbrieften Schuldverschreibungen entspricht dem jeweils in den Registern beider ICSDs eingetragenen Gesamtbetrag. Die Register der ICSDs (unter denen man die Register versteht, die jeder ICSD für seine Kunden über den Betrag ihres Anteils an den Schuld verschreibungen führt) sind schlüssiger Nachweis über den Nennbetrag der durch die Globalurkunde verbrieften Schuldverschreibungen und eine zu diesen Zwecken von einem ICSD jeweils ausgestellte Bestätigung mit dem Nennbetrag der so verbrieften |
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of the records of the relevant ICSD at that time. |
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Schuldverschreibungen ist zu jedem Zeitpunkt ein schlüssiger Nachweis über den Inhalt des Registers des jeweiligen ICSD. |
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On any redemption or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by the Global Note the Issuer shall procure that details of any redemption, payment or purchase and cancellation (as the case may be) in respect of the Global Note shall be entered pro rata in the records of the ICSDs and, upon any such entry being made, the principal amount of the Notes recorded in the records of the ICSDs and represented by the Global Note shall be reduced by the aggregate principal amount of the Notes so redeemed or purchased and cancelled. |
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Bei Rückzahlung oder Zinszahlung bezüglich der durch die Globalurkunde verbrieften Schuldverschreibungen bzw. bei Kauf und Entwertung der durch die Globalurkunde verbrieften Schuldverschreibungen stellt die Emittentin sicher, dass die Einzelheiten über jede Rückzahlung und Zahlung bzw. Kauf und Löschung bezüglich der Globalurkunden pro rata in die Unterlagen der ICSDs eingetragen werden, und nach dieser Eintragung vom Nennbetrag der in die Register der ICSDs aufgenommenen und durch die Globalurkunde verbrieften Schuldschreibungen der Gesamtnennbetrag der zurückgezahlten bzw. gekauften und entwerteten Schuldverschreibungen abgezogen wird. |
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On an exchange of a portion only of the Notes represented by a Temporary Global Note, the Issuer shall procure that details of such exchange shall be entered pro rata in the records of the ICSDs. |
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Bei Austausch nur eines Teils von Schuldverschreibungen, die durch eine vorläufige Globalurkunde verbrieft sind, wird die Emittentin sicherstellen, dass die Einzelheiten dieses Austauschs pro rata in die Register der ICSDs aufgenommen werden. |
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(5) |
Holder of Notes. |
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(5) |
Gläubiger von Schuldverschreibungen. |
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Holder means any holder of a proportionate co-ownership or other beneficial interest or right in the Notes. |
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Gläubiger bedeutet jeder Inhaber eines Miteigentumsanteils oder anderen vergleichbaren Rechts an den Schuldverschreibungen. |
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(6) |
United States. |
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(6) |
Vereinigte Staaten. |
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For the purposes of these Terms and Conditions, United States means the United States of America (including the States thereof and the District of Columbia) and its territories and possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and Northern Mariana Islands). |
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Für die Zwecke dieser Emissionsbedingungen bezeichnet Vereinigte Staaten die Vereinigten Staaten von Amerika (einschließlich deren Bundesstaaten und des District of Columbia) sowie deren Territorien und Besitztümer (einschließlich Puerto Rico, der U.S. Virgin Islands, Guam, American Samoa, Wake Island und Northern Mariana Islands). |
§ 2 |
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§ 2 |
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(STATUS, NEGATIVE PLEDGE AND GUARANTEE) |
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(STATUS, NEGATIVVERPFLICHTUNG UND GARANTIE) |
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(1) |
Status. |
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(1) |
Status. |
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The obligations under the Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other present or future unsecured and unsubordinated obligations of the Issuer, unless such obligations are accorded priority under mandatory provisions of statutory law. |
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Die Schuldverschreibungen begründen nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen gegenwärtigen und künftigen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende gesetzliche Bestimmungen ein Vorrang eingeräumt wird. |
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(2) |
Negative Pledge. |
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(2) |
Negativverpflichtung. |
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So long as any of the Notes remain outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of the Fiscal Agent, the Issuer undertakes (i) not to grant or permit to subsist any mortgage, land charge, lien or any other security right in rem (dingliches Sicherungsrecht) (the Security Interest) over any or all of its present or future assets, as security for any present or future Capital Market Indebtedness and (ii) to procure, to the extent legally possible, that none of its Subsidiaries will grant or permit to subsist any Security Interest over any or all of its present or future assets, as security for any present or future Capital Market Indebtedness, without at the same time having the Holders share equally and rateably in such Security Interest. This undertaking shall not apply with respect to any Security Interest which (i) is provided over any of the Issuers claims or claims of any of its Subsidiaries against any affiliated companies within the meaning of sections 15 et seqq. of the German Stock Corporation Act (Aktiengesetz) or any third party, which claims exist now or arise at any time in the future, as a result of the passing on of the proceeds from the sale by the issuer of any securities, provided that |
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Die Emittentin verpflichtet sich, solange Schuldverschreibungen ausstehen, jedoch nur bis zu dem Zeitpunkt, an dem alle Beträge an Kapital und Zinsen der Emissionsstelle zur Verfügung gestellt worden sind, (i) keine Grundpfandrechte, Pfandrechte oder sonstigen dinglichen Sicherungsrechte (ein Sicherungsrecht) an gegenwärtigen oder zukünftigen Teilen ihres Vermögens oder ihres Vermögens insgesamt zur Sicherung der gegenwärtigen oder zukünftigen Kapitalmarktverbindlichkeiten zu bestellen oder fortbestehen zu lassen, und (ii) soweit rechtlich möglich, zu veranlassen, dass keine ihrer Tochtergesellschaften Sicherungsrechte an gegenwärtigen oder zukünftigen Teilen ihres Vermögens oder ihres Vermögens insgesamt zur Sicherung der gegenwärtigen oder zukünftigen Kapitalmarktverbindlichkeiten bestellt oder fortbestehen lässt, ohne jeweils die Gläubiger zur gleichen Zeit auf gleiche Weise und anteilig an diesen Sicherungsrechten teilhaben zu lassen. Diese Verpflichtung gilt nicht in Bezug auf Sicherungsrechte, die (i) an gegenwärtigen oder zukünftigen Ansprüchen der Emittentin oder Ansprüchen einer ihrer Tochtergesellschaften gegen verbundene Unternehmen im Sinne der §§ 15 ff. Aktiengesetz oder gegen Dritte aufgrund |
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any such security serves to secure obligations under such securities issued by the Issuer or by any of its Subsidiaries, (ii) is existing on assets at the time of the acquisition thereof by the Issuer or by any of its Subsidiaries or is existing over assets of a newly acquired company which becomes a member of the Fresenius Medical Care Group, (iii) is existing on the issue date of the Notes, (iv) secures a Capital Market Indebtedness existing at the time of acquisition that becomes an obligation of the Issuer or of any company within the Fresenius Medical Care Group as a consequence of such acquisition, provided that such Capital Market Indebtedness was not created in contemplation of such acquisition (v) is mandatory pursuant to applicable laws or required as a prerequisite for obtaining any governmental approvals, (vi) is provided in connection with any issuance of asset backed securities by the Issuer or by any of its Subsidiaries, (vii) is provided in respect of any issuance of asset backed securities made by a special purpose vehicle where the Issuer or any of its Subsidiaries is the originator of the underlying assets, (viii) is provided in connection with the renewal, extension or replacement of any security pursuant to foregoing (i) through (vii) and, (ix) secures Capital Market Indebtedness the principal amount of which (when aggregated with the principal amount of any other Capital Market Indebtedness which has the benefit of a security other than any permitted under the subparagraphs (i) to (viii) above) does not exceed EUR 100,000,000 (or its equivalent in other currencies at any time). |
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von einer Übertragung von Erlösen aus dem Verkauf von Wertpapieren bestehen, soweit diese Sicherheiten zur Sicherung von Verpflichtungen aus diesen durch die Emittentin oder durch eine ihrer Tochtergesellschaften ausgegebenen Wertpapieren dienen, (ii) zur Sicherung von Vermögensgegenständen bestellt sind, die bereits zum Zeitpunkt ihres Erwerbs durch die Emittentin oder durch eine ihrer Tochtergesellschaften bestanden, oder am Vermögen einer neu erworbenen Gesellschaft bestehen, die Mitglied des Fresenius Medical Care-Konzerns wird, (iii) zum Ausgabetag der Schuldverschreibungen bestehen, (iv) eine im Zeitpunkt einer Akquisition bestehende Kapitalm arktverbindlichkeit besichern, die infolge der Akquisition eine Verpflichtung der Emittentin oder einer Gesellschaft des Fresenius Medical Care-Konzerns wird, sofern diese Kapitalmarkt verbindlichkeit nicht im Hinblick auf diese Akquisition begründet wurde, (v) aufgrund anwendbaren Rechts gesetzlich vorgeschriebene Sicherheiten sind oder solche, deren Bestehen eine Voraussetzung zur Erteilung einer behördlichen Genehmigung sind, (vi) im Zusammenhang mit durch die Emittentin oder durch eine ihrer Tochtergesellschaften begebenen Asset Backed Securities (ABS) stehen, (vii) im Zusammenhang mit durch Zweckgesellschaften begebenen Asset Backed Securities (ABS) stehen, bei denen die Emittentin oder eine ihrer Tochtergesellschaften der Originator der zugrundeliegenden Vermögensgegenstände ist, (viii) der Erneuerung, Verlängerung oder dem Austausch irgendeiner Sicherheit gemäß vorstehend (i) bis (vii) dienen und (ix) Kapitalmarktverbindlichkeiten besichern, deren Kapitalbetrag (bei Aufaddierung auf den Kapitalbetrag sonstiger Kapitalmarktverbindlichkeiten, für die andere Sicherheiten als die nach (i) bis (viii) zulässigen bestehen) EUR 100.000.000 (oder deren jeweiligen Gegenwert in anderen Währungen) nicht überschreitet. |
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For purposes of these Terms and Conditions, Capital Market Indebtedness means any obligation for the payment of borrowed money which is evidenced by a certificate of indebtedness (Schuldscheindarlehen) or which is represented by any bond or debt security with an original maturity of more than one year which is, or is intended to be, or is capable of being listed or traded on a stock exchange or other recognized securities market. |
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Im Sinne dieser Emissionsbedingungen bezeichnet Kapitalmarktverbindlichkeit jede Verbindlichkeit zur Rückzahlung aufgenommener Geldbeträge, die durch Schuldscheindarlehen dokumentiert ist oder durch Schuldverschreibungen oder sonstige Wertpapiere mit einer ursprünglichen Laufzeit von mehr als einem Jahr, die an einer Börse oder an einem anderen anerkannten Wertpapiermarkt zugelassen oder gehandelt werden oder zugelassen oder gehandelt werden können, verbrieft, verkörpert oder dokumentiert ist. |
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Fresenius Medical Care Group means Fresenius Medical Care AG & Co. KGaA and its Subsidiaries on a consolidated basis. |
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Fresenius Medical Care-Konzern bezeichnet Fresenius Medical Care AG & Co. KGaA und ihre Tochtergesellschaften auf konsolidierter Basis. |
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Subsidiary means, with respect to any Person, any corporation, limited liability company, association, partnership or other business entity whose results of operations are consolidated in accordance with IFRS with those of: |
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Tochtergesellschaft bezeichnet in Bezug auf einen Rechtsträger, eine Kapitalgesellschaft, eine Gesellschaft mit Haftungsbeschränkung, eine Vereinigung, eine Personengesellschaft oder ein sonstiges Unternehmen, dessen Ergebnisse gemäß den IFRS mit den Ergebnissen folgender Personen konsolidiert werden: |
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(a) such Person; |
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(a) dieses Rechtsträgers; |
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(b) such Person and one or more Subsidiaries of such Person; or |
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(b) dieses Rechtsträgers und einer oder mehreren Tochtergesellschaften dieses Rechtsträgers; oder |
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(c) one or more Subsidiaries of such Person. |
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(c) einer oder mehrerer Tochtergesellschaften dieses Rechtsträgers. |
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IFRS refers to International Financial Reporting Standards of the International Accounting Standards Board, as adopted by the European Union. |
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IFRS bezeichnet die International Financial Reporting Standards des International Account Standards Board, wie sie von der Europäischen Union anerkannt werden. |
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(3) |
Guarantee. |
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(3) |
Garantie. |
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Fresenius Medical Care Holdings, Inc. (the Guarantor) has given an unconditional and irrevocable guarantee (the Guarantee) for the due and punctual payment of principal of, and interest on, and any other amounts payable under any Notes. The Guarantee |
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Fresenius Medical Care Holdings, Inc. (die Garantiegeberin) hat eine unbedingte und unwiderrufliche Garantie (die Garantie) für die ordnungsgemäße und pünktliche Zahlung von Kapital und Zinsen und allen anderen zu zahlenden Beträgen unter den Schuldver |
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constitutes a contract for the benefit of the Holders from time to time as third party beneficiaries in accordance with § 328 paragraph 1 of the German Civil Code (Bürgerliches Gesetzbuch)(1), giving rise to the right of each Holder to require performance of the Guarantee directly from the Guarantor and to enforce the Guarantee directly against the Guarantor. Copies of the Guarantee may be obtained free of charge at the specified office of the Fiscal Agent. |
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schreibungen übernommen. Die Garantie stellt einen Vertrag zugunsten der Gläubiger als begünstigte Dritte im Sinne des § 328 Absatz 1 BGB dar, der jedem Gläubiger das Recht gibt, Erfüllung der in der Garantie übernommenen Verpflichtungen unmittelbar von der Garantiegeberin zu verlangen und diese Verpflichtungen unmittelbar gegen die Garantiegeberin durchzusetzen. Kopien der Garantie können kostenlos bei der bezeichneten Geschäftsstelle der Emissionsstelle bezogen werden. |
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(4) |
Release of Guarantee. |
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(4) |
Freigabe der Garantie. |
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Pursuant to its terms, the Guarantee (but not any payment obligation under the Guarantee which has already become due and payable) will be automatically and unconditionally released (and thereupon shall terminate and be discharged and be of no further force and effect) at any time when the Guarantor is no longer an obligor under the Amended 2012 Credit Agreement (as defined below), provided that, if under the Amended 2012 Credit Agreement, a new guarantee is granted, the Issuer will procure that substantially the same guarantee will also be granted in respect of the obligations under the Notes for the benefit of the Holders. |
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Gemäß ihren Bestimmungen wird die Garantie (aber keine Zahlungsverpflichtung im Rahmen der Garantie, die bereits fällig und zahlbar geworden ist) automatisch und unbedingt freigegeben (und gilt von diesem Zeitpunkt an als erloschen und unwirksam), sobald die Garantiegeberin nicht mehr Verpflichtete unter dem Geänderten Kreditvertrag 2012 ist, wobei, sollte unter dem Geänderten Kreditvertrag 2012 (wie nachstehend definiert) eine neue Garantie gestellt werden, die Emittentin sicherstellen wird, dass eine Garantie zu den im Wesentlichen gleichen Bedingungen auch in Ansehung der Schuldverschreibungen zugunsten der Gläubiger gestellt wird. |
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Amended 2012 Credit Agreement means the Credit Agreement dated as of October 30, 2012 among the Issuer and the Guarantor as borrowers and guarantors, Bank of America N.A. as administrative agent and the lenders named therein, (as amended, restated, modified, extended, renewed and/or supplemented or as refinanced or replaced from time to time). |
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Geänderter Kreditvertrag 2012 bedeutet der Kreditvertrag vom 30. Oktober 2012 zwischen der Emittentin, der Garantiegeberin als Kreditnehmer und Garanten, der Bank of America N.A., als Verwaltungsagent und den darin genannten Kreditgebern (in der jeweils gültigen Fassung, angepasst, modifiziert, erweitert, erneuert und/oder ergänzt oder refinanziert oder ersetzt). |
(1) An English language convenience translation of § 328 paragraph 1 BGB (German Civil Code) reads as follows: A contract may stipulate performance for the benefit of a third party, to the effect that the third party acquires the right directly to demand performance.
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In case of a release of the Guarantee, the Issuer will notify the Holders pursuant to § 12. |
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Im Fall einer Freigabe der Garantie wird die Emittentin dies den Gläubigern gemäß § 12 mitteilen. |
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§ 3 |
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§ 3 |
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(INTEREST) |
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(ZINSEN) |
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(1) |
Rate of Interest and Interest Payment Dates. |
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(1) |
Zinssatz und Zinszahlungstage. |
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The Notes shall bear interest on their principal amount at the rate of 1.000% per annum from (and including) May 29, 2020 to (but excluding) the Maturity Date (as defined in § 5(1)). Interest shall be payable in arrears on May 29 in each year (each such date, an Interest Payment Date). The first payment of interest shall be made on May 29, 2021. |
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Die Schuldverschreibungen werden bezogen auf ihren Nennbetrag verzinst, und zwar vom 29. Mai 2020 (einschließlich) bis zum Fälligkeitstag (wie in § 5(1) definiert) (ausschließlich) mit jährlich 1,000%. Die Zinsen sind nachträglich am 29. Mai eines jeden Jahres zahlbar (jeweils ein Zinszahlungstag). Die erste Zinszahlung erfolgt am 29. Mai 2021. |
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(2) |
Accrual of Interest. |
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Auflaufende Zinsen. |
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The Notes shall cease to bear interest from the expiry of the day preceding the day on which they are due for redemption. If the Issuer for any reason fails to redeem the Notes when due, interest shall continue to accrue at the default rate of interest established by statutory law(2) on the outstanding aggregate principal amount of the Notes from (and including) the due date to (but excluding) the day on which such redemption payment is made to the Holders. |
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Der Zinslauf der Schuldverschreibungen endet mit Ablauf des Tages, der dem Tag vorangeht, an dem sie zur Rückzahlung fällig werden. Falls die Emittentin die Schuldverschreibungen bei Fälligkeit aus irgendeinem Grund nicht zurückzahlt, wird der ausstehende Gesamtnennbetrag der Schuldverschreibungen von dem Tag der Fälligkeit (einschließlich) bis zum Tag der vollständigen Rückzahlung an die Gläubiger (ausschließlich) mit dem gesetzlich bestimmten Verzugszins(3) verzinst. |
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(3) |
Calculation of Interest for Periods other than a full Year. |
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Berechnung der Zinsen für Zeiträume, die nicht einem vollen Jahr entsprechen. |
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If interest is to be calculated for a period other than a full year, it shall be calculated on the basis of the Day Count Fraction (as defined below). The number of Interest |
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Sofern Zinsen für einen Zeitraum, der nicht einem vollen Jahr entspricht, zu berechnen sind, erfolgt die Berechnung auf der Grundlage des Zinstagequotienten (wie nachfol |
(2) The default rate of interest established by statutory law is five percentage points above the basis rate of interest published by Deutsche Bundesbank from time to time, §§ 288 paragraph 1, 247 paragraph 1 of the German Civil Code.
(3) Der gesetzliche Verzugszinssatz beträgt für das Jahr fünf Prozentpunkte über dem von der Deutsche Bundesbank von Zeit zu Zeit veröffentlichten Basiszinssatz, §§ 288 Absatz 1, 247 Absatz 1 BGB.
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Payment Dates per calendar year (each a Determination Date) is one. |
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gend definiert). Die Anzahl der Zinszahlungstage im Kalenderjahr (jeweils ein Feststellungstermin) beträgt Eins. |
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(4) |
Day Count Fraction. |
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Zinstagequotient. |
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Day Count Fraction means with regard to the calculation of the amount of interest on the Notes for any period of time (the Calculation Period): |
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Zinstagequotient bezeichnet im Hinblick auf die Berechnung von Zinsbeträgen auf die Schuldverschreibungen für einen beliebigen Zeitraum (der Zinsberechnungszeitraum): |
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(a) if the Calculation Period (from and including the first day of such period but excluding the last) is equal to or shorter than the Determination Period during which the Calculation Period ends, the number of days in such Calculation Period (from and including the first day of such period but excluding the last) divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) that would occur in one calendar year; or |
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(a) wenn der Zinsberechnungszeitraum (einschließlich des ersten aber ausschließlich des letzten Tages dieser Periode) kürzer ist als die Feststellungsperiode, in die das Ende des Zinsberechnungszeitraumes fällt oder ihr entspricht, die Anzahl der Tage in dem betreffenden Zinsberechnungszeitraum (einschließlich des ersten aber ausschließlich des letzten Tages dieser Periode) geteilt durch das Produkt (1) der Anzahl der Tage in der Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) angegeben) in einem Kalenderjahr; oder |
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(b) if the Calculation Period is longer than the Determination Period during which the Calculation Period ends, the sum of: (A) the number of days in such Calculation Period falling in the Determination Period in which the Calculation Period begins divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) and (B) the number of days in such Calculation Period falling in the next Determination Period divided by the product of (1) the number of days in such Determination Period and (2) the number of Determination Dates (as specified in § 3(3)) that would occur in one calendar year. |
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(b) wenn der Zinsberechnungszeitraum länger ist als die Feststellungsperiode, in die das Ende des Zinsberechnungszeitraumes fällt, die Summe aus (A) der Anzahl der Tage in dem Zinsberechnungszeitraum, die in die Feststellungsperiode fallen, in welcher der Zinsberechnungszeitraum beginnt, geteilt durch das Produkt aus (1) der Anzahl der Tage in dieser Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) angegeben) in einem Kalenderjahr und (B) der Anzahl der Tage in dem Zinsberechnungszeitraum, die in die nächste Feststellungsperiode fallen, geteilt durch das Produkt aus (1) der Anzahl der Tage in dieser Feststellungsperiode und (2) der Anzahl der Feststellungstermine (wie in § 3(3) |
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angegeben) in einem Kalenderjahr. |
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Determination Period means the period from (and including) a Determination Date to, (but excluding) the next Determination Date. |
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Feststellungsperiode ist die Periode ab einem Feststellungstermin (einschließlich desselben) bis zum nächsten Feststellungstermin (ausschließlich desselben). |
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§ 4 |
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§ 4 |
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(PAYMENTS) |
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(ZAHLUNGEN) |
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(1) |
Payment of Principal and Payment of Interest. |
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Zahlungen auf Kapital und Zahlung von Zinsen. |
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(a) Payment of principal in respect of the Notes shall be made, subject to subparagraph (2) below, to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System. |
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(a) Zahlungen von Kapital auf die Schuldverschreibungen erfolgen nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems. |
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(b) Payment of Interest on the Notes shall be made, subject to subparagraph (2), to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System. |
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(b) Die Zahlung von Zinsen auf die Schuldverschreibungen erfolgt nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems. |
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Payment of interest on Notes represented by the Temporary Global Note shall be made, subject to subparagraph (2), to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System, upon due certification as provided in § 1(3)(b). |
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Die Zahlung von Zinsen auf Schuldverschreibungen, die durch die vorläufige Globalurkunde verbrieft sind, erfolgt nach Maßgabe des nachstehenden Absatzes (2) an das Clearingsystem oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearingsystems, und zwar nach ordnungsgemäßer Bescheinigung gemäß § l(3)(b). |
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(2) |
Manner of Payment. |
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(2) |
Zahlungsweise. |
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Subject to applicable fiscal and other laws and regulations, payments of amounts due in respect of the Notes shall be made in the Specified Currency. |
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Vorbehaltlich geltender steuerlicher und sonstiger gesetzlicher Regelungen und Vorschriften erfolgen zu leistende Zahlungen auf die Schuldverschreibungen in der Festgelegten Währung. |
(3) |
Discharge. |
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(3) |
Erfüllung. |
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The Issuer or, as the case may be, the Guarantor shall be discharged by payment to, or to the order of, the Clearing System. |
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Die Emittentin bzw. die Garantiegeberin wird durch Leistung der Zahlung an das Clearingsystem oder dessen Order von ihrer Zahlungspflicht befreit. |
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(4) |
Payment Business Day. |
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(4) |
Zahltag. |
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If the date for payment of any amount in respect of any Note is not a Payment Business Day then the Holder shall not be entitled to payment until the next such day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay. |
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Fällt der Fälligkeitstag einer Zahlung in Bezug auf eine Schuldverschreibung auf einen Tag, der kein Zahltag ist, dann hat der Gläubiger keinen Anspruch auf Zahlung vor dem nächsten Zahltag am jeweiligen Geschäftsort. Der Gläubiger ist nicht berechtigt, weitere Zinsen oder sonstige Zahlungen aufgrund dieser Verspätung zu verlangen. |
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For these purposes, Payment Business Day means any day which is |
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Für diese Zwecke bezeichnet Zahltag einen Tag, |
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a day (other than a Saturday or a Sunday) on which the Clearing System as well as all relevant parts of TARGET2 are operational to forward the relevant payment. |
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der ein Tag (außer einem Samstag oder Sonntag) ist, an dem das Clearingsystem sowie alle betroffenen Bereiche des TARGET2 betriebsbereit sind, um die betreffenden Zahlungen weiterzuleiten. |
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(5) |
References to Principal and Interest. |
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(5) |
Bezugnahmen auf Kapital und Zinsen. |
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References in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as applicable: the Call Redemption Amount of the Notes; and any premium and any other amounts which may be payable under or in respect of the Notes. References in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any Additional Amounts which may be payable under § 7. |
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Bezugnahmen in diesen Emissionsbedingungen auf Kapital der Schuldverschreibungen schließen, soweit anwendbar, die folgenden Beträge ein: den Wahl-Rückzahlungsbetrag (Call) der Schuldverschreibungen; sowie jeden Aufschlag sowie sonstige auf oder in Bezug auf die Schuldverschreibungen zahlbaren Beträge. Bezugnahmen in diesen Emissionsbedingungen auf Zinsen auf die Schuldverschreibungen sollen, soweit anwendbar, sämtliche gemäß § 7 zahlbaren Zusätzlichen Beträge einschließen. |
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(6) |
Deposit of Principal and Interest. |
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(6) |
Hinterlegung von Kapital und Zinsen. |
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The Issuer or, as the case may be, the Guarantor may deposit with the local court (Amtsgericht) in Frankfurt/Main principal or interest not claimed by Holders within |
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Die Emittentin bzw. die Garantiegeberin ist berechtigt, beim Amtsgericht Frankfurt am Main Zins- oder Kapitalbeträge zu hinterlegen, die von den Gläubigern nicht innerhalb |
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twelve months after the Maturity Date, even though such Holders may not be in default of acceptance of payment. If and to the extent that the deposit is effected and the right of withdrawal is waived, the respective claims of such Holders against the Issuer shall cease. |
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von zwölf Monaten nach dem Fälligkeitstag beansprucht worden sind, auch wenn die Gläubiger sich nicht in Annahmeverzug befinden. Soweit eine solche Hinterlegung erfolgt, und auf das Recht der Rücknahme verzichtet wird, erlöschen die diesbezüglichen Ansprüche der Gläubiger gegen die Emittentin. |
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§ 5 |
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§ 5 |
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(REDEMPTION) |
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(RÜCKZAHLUNG) |
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(1) |
Final Redemption. |
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(1) |
Rückzahlung bei Endfälligkeit. |
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Unless previously redeemed in whole or in part or purchased and cancelled, the Notes shall be redeemed at principal amount on May 29, 2026 (the Maturity Date). |
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Soweit nicht zuvor bereits ganz oder teilweise zurückgezahlt oder angekauft und entwertet, werden die Schuldverschreibungen zu ihrem Nennbetrag am 29. Mai 2026 (der Fälligkeitstag) zurückgezahlt. |
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(2) |
Early Redemption for Reasons of Taxation. |
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(2) |
Vorzeitige Rückzahlung aus steuerlichen Gründen. |
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If as a result of any change in, or amendment to, the laws, treaties, regulations or official position of any Relevant Taxing Jurisdiction (as defined in § 7 herein) or any political subdivision or taxing authority thereto or therein affecting taxation or the obligation to pay duties of any kind, or any change in, or amendment to, an official interpretation or application of such laws or regulations, which amendment or change is effective on or after the date on which the last tranche of this series of Notes was issued, the Issuer or the Guarantor, as the case may be, is required to pay Additional Amounts (as defined in § 7 herein) on the next succeeding Interest Payment Date (as defined in § 3(1)), and this obligation cannot be avoided by the use of reasonable measures available to the Issuer or the Guarantor, as the case may be, the Notes may be redeemed, in whole but not in part, at the option of the Issuer, upon not more than 60 days nor less than 30 days prior notice of redemption given to the Fiscal Agent and, in accordance with § 12 to the Holders, at their principal amount, together with interest (if any) accrued to the |
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Die Schuldverschreibungen können insgesamt, jedoch nicht teilweise, nach Wahl der Emittentin mit einer Kündigungsfrist von nicht mehr als 60 und nicht weniger als 30 Tagen durch Erklärung gegenüber der Emissionsstelle und Benachrichtigung gemäß § 12 gegenüber den Gläubigern vorzeitig gekündigt und zu ihrem Nennbetrag zuzüglich etwaiger bis zum für die Rückzahlung festgesetzten Tag (ausschließlich) aufgelaufener Zinsen zurückgezahlt werden, falls die Emittentin oder die Garantiegeberin als Folge einer Änderung oder Ergänzung der Steueroder Abgabengesetze, -abkommen, -vorschriften und offiziellen Verlautbarungen einer Relevanten Steuerjurisdiktion (wie in § 7 dieser Bedingungen definiert) oder deren politischen Untergliederungen oder Steuerbehörden oder als Folge einer Änderung oder Ergänzung der Anwendung oder der offiziellen Auslegung dieser Gesetze und Vorschriften (vorausgesetzt, diese Änderung oder Ergänzung wird am oder nach dem Tag, an dem die letzte Tranche dieser Serie von Schuldverschreibungen begeben wird, wirksam) am nächstfolgenden Zinszahlungstag |
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date fixed for redemption (excluding). |
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(wie in § 3(1) definiert) zur Zahlung von Zusätzlichen Beträgen (wie in § 7 dieser Bedingungen definiert) verpflichtet sein wird und diese Verpflichtung nicht durch das Ergreifen zumutbarer, der Emittentin oder der Garantiegeberin zur Verfügung stehender Maßnahmen vermieden werden kann. |
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However, no such notice of redemption may be given (i) earlier than 90 days prior to the earliest date on which the Issuer or the Guarantor would be obligated to pay such Additional Amounts were a payment in respect of the Notes then due, or (ii) if at the time such notice is given, such obligation to pay such Additional Amounts does not remain in effect. |
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Eine solche Kündigung darf allerdings nicht (i) früher als 90 Tage vor dem frühestmöglichen Termin erfolgen, an dem die Emittentin oder die Garantiegeberin verpflichtet wäre, solche Zusätzlichen Beträge zu zahlen, falls eine Zahlung auf die Schuldverschreibungen dann fällig sein würde, oder (ii) erfolgen, wenn zu dem Zeitpunkt, zu dem die Kündigung erklärt wird, die Verpflichtung zur Zahlung von Zusätzlichen Beträgen nicht mehr wirksam ist. |
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Any such notice shall be given in accordance with § 12. It shall be irrevocable, must specify the date fixed for redemption and must set forth a statement in summary form of the facts constituting the basis for the right of the Issuer so to redeem. |
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Eine solche Kündigung ist gemäß § 12 bekanntzumachen. Sie ist unwiderruflich, muss den für die Rückzahlung festgelegten Termin nennen und eine zusammenfassende Erklärung enthalten, welche die das Rückzahlungsrecht der Emittentin begründenden Umständen darlegt. |
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Before the publication of any notice of redemption pursuant to this subparagraph, the Issuer shall deliver to the Fiscal Agent a certificate signed by a member of the managing board of the general partner of the Issuer stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion of independent legal counsel or tax advisers of recognized standing to the effect that the Issuer or the Guarantor, as the case may be, has or will become obliged to pay such Additional Amounts as a result of such change or amendment. |
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Vor Bekanntgabe einer Mitteilung über eine Rückzahlung gemäß diesen Bestimmungen hat die Emittentin der Emissionsstelle eine von einem Mitglied des Vorstands des Komplementärs der Emittentin unterzeichnete Bescheinigung zukommen zu lassen, der zufolge die Emittentin berechtigt ist, eine entsprechende Rückzahlung zu leisten, und in der nachvollziehbar dargelegt ist, dass die Bedingungen für das Recht der Emittentin zur Rückzahlung gemäß diesen Bestimmungen erfüllt sind; zusätzlich hat die Emittentin ein von unabhängigen und anerkannten Rechts- oder Steuerberatern erstelltes Gutachten vorzulegen, demzufolge die Emittentin oder die Garantiegeberin in Folge einer entsprechenden Änderung oder Ergänzung zur Zahlung Zusätzlicher Beträge verpflichtet ist oder sein wird. |
(3) |
Early Redemption at the Option of the Issuer for Reasons of Minimal Outstanding Principal Amount. |
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(3) |
Vorzeitige Rückzahlung nach Wahl der Emittentin bei geringfügig ausstehendem Nennbetrag. |
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If 80% or more in principal amount of the Notes then outstanding have been redeemed or purchased by the Issuer or any Subsidiary of Fresenius Medical Care AG & Co. KGaA, the Issuer may, on not less than 30 or more than 60 days notice to the Holders redeem, at its option, the remaining Notes as a whole at their principal amount, together with interest (if any) accrued to the date fixed for redemption (excluding). |
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Wenn 80% oder mehr des Nennbetrags der dann ausstehenden Schuldverschreibungen durch die Emittentin oder eine Tochtergesellschaft der Fresenius Medical Care AG & Co. KGaA zurückgezahlt oder zurückerworben wurde, ist die Emittentin berechtigt, nach ihrer Wahl alle ausstehenden Schuldverschreibungen mit einer Frist von mindestens 30 und höchstens 60 Tagen gegenüber den Gläubigern zu kündigen und zum Nennbetrag zuzüglich etwaiger bis zum Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zurück zu zahlen. |
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(4) |
Early Redemption at the Option of the Holders upon a Change of Control. |
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(4) |
Vorzeitige Rückzahlung nach Wahl der Gläubiger bei Vorliegen eines Kontrollwechsels. |
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Each Holder of the Notes, upon the occurrence of a Change of Control Triggering Event, will have the right (unless, prior to the giving of the Put Event Notice referred to below, the Issuer gives notice to redeem the Notes in accordance with § 5(2), i.e. for taxation reasons) to require that the Issuer repurchases such Holders Notes on the Optional Redemption Date at a purchase price in cash equal to 101% of the principal amount together with interest (if any) accrued to the Optional Redemption Date (excluding). |
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Falls ein Kontrollwechselereignis stattfindet, hat jeder Gläubiger das Recht (soweit die Emittentin nicht bereits vor Abgabe der Vorzeitigen Rückkaufsgrunderklärung (wie nachstehend definiert) die Rückzahlung gemäß § 5(2), d.h. aus steuerlichen Gründen, erklärt hat) von der Emittentin am Stichtag den Rückkauf seiner Schuldverschreibungen zu einem Kaufpreis von 101% des Nennbetrags zuzüglich etwaiger bis zum Stichtag (ausschließlich) aufgelaufener Zinsen zu verlangen. |
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In this context the following provisions apply: |
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In diesem Zusammenhang finden die folgenden Vorschriften Anwendung: |
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Change of Control Triggering Event means the occurrence of a Change of Control together with a Ratings Decline. |
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Ein Kontrollwechselereignis liegt vor, wenn ein Kontrollwechsel zusammen mit einer Ratingherabstufung eintreten. |
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Rating Agency means (1) S&P Global Inc. and its subsidiaries or successors (S&P), (2) Moodys Investors Service Inc. and its subsidiaries or successors (Moodys), and (3) Fitch Ratings Ltd. and its subsididaries or successors (Fitch), or (4) if S&P, Moodys or Fitch, or all three shall not make rating of Fresenius Medical Care AG & Co. KGaA |
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Ratingagentur bezeichnet (1) S&P Global Inc. sowie Tochter- oder Nachfolgergesellschaften (S&P), (2) Moodys Investors Service Inc. sowie deren Tochter - oder Nachfolgergesellschaften (Moodys), (3) Fitch Ratings Limited oder deren entsprechenden Nachfolger sowie deren Tochter- oder Nachfolgergesellschaften (Fitch), oder (4) falls |
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publicly available, a European-wide reputable securities rating agency or agencies, as the case may be, selected by Fresenius Medical Care AG & Co. KGaA, which shall be substituted for S&P, Moodys or Fitch or all three, as the case may be. |
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S&P, Moodys oder Fitch oder alle drei kein Rating für Fresenius Medical Care AG & Co. KGaA öffentlich zur Verfügung stellen, eine Ratingagentur oder Ratingagenturen mit europaweitem Ansehen, die von Fresenius Medical Care AG & Co. KGaA ausgewählt wird und S&P, Moodys oder Fitch oder alle diese Agenturen ersetzt. |
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Ratings Decline means that if (a), at the time of the occurrence of a Change of Control, Fresenius Medical Care AG & Co. KGaAs (i) has been, rated Investment Grade by at least two Rating Agencies and such rating is, within 120 days from such time, either downgraded to a non-investment grade rating or withdrawn by at least two Rating Agencies and is not within such 120-day period subsequently (in the case of a downgrade) upgraded to Investment Grade by two of the three Rating Agencies, or (in the case of withdrawal) replaced by an Investment Grade rating from any other Rating Agency or Rating Agencies; or (ii) rated below Investment Grade and such rating from any Rating Agency is, within 120 days from such time, downgraded by one or more gradations (including gradations within Rating Categories as well as between Rating Categories) and is not within such 120 day period subsequently upgraded to its earlier credit rating or better by such Rating Agency, provided that if at the time of the occurrence of a Change of Control Fresenius Medical Care AG & Co. KGaA carries an Investment Grade rating of only one Rating Agency, it shall be sufficient if the requirements under subparagraph (i) are met with respect to such Rating Agency; and (b) in making any of the decisions referred to above, the relevant Rating Agency announces publicly or confirms in writing to Fresenius Medical Care AG & Co. KGaA that its decision resulted, in whole or in part, from the occurrence of the Change of Control. |
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Eine Ratingherabstufung liegt vor, falls (a) Fresenius Medical Care AG & Co. KGaA bei Eintritt des Kontrollwechsels (i) von mindestens zwei Ratingagenturen mit Investment Grade bewertet ist und diese Ratings von mindestens zwei Ratingagenturen innerhalb von 120 Tagen nach dem Kontrollwechsel zu einem Non-Investment-Grade-Rating herabgestuft oder das Rating zurückgezogen wurde und nicht innerhalb dieser 120 Tagesperiode anschließend (im Falle einer Herabstufung) durch mindestens zwei Ratingagenturen wieder auf ein Investment Grade Rating heraufgestuft oder (im Falle eines Zurückziehens) durch das Investment Grade Rating einer anderen Ratingagentur oder Ratingagenturen ersetzt wurde; oder (ii) unterhalb von Investment Grade bewertet ist und dieses Rating von einer Ratingagentur innerhalb von 120 Tagen nach dem Kontrollwechsel um eine oder mehrere Stufen (einschließlich Untergliederungen innerhalb von sowie zwischen Ratingkategorien) herabgestuft und nicht innerhalb dieser 120-Tagesperiode anschließend wieder auf das ursprüngliche oder ein besseres Rating durch diese Ratingagentur heraufgestuft wurde, wobei, falls Fresenius Medical Care AG & Co. KGaA zum Eintritt des Kontrollwechsels über ein Investment-Grade-Rating von nur einer Ratingagentur verfügt, es bereits ausreichend ist, wenn die Voraussetzungen in Unterabsatz (i) im Hinblick auf diese Ratingagentur erfüllt sind; und (b) im Zusammenhang mit einer der oben genannten Entscheidungen die betreffende Ratingagentur öffentlich bekannt macht oder gegenüber Fresenius Medical Care AG & Co. KGaA schriftlich bestätigt, dass ihre Entscheidung ganz oder teilweise |
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auf den Kontrollwechsel zurückzuführen ist. |
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Provided however that, no Ratings Decline will occur if at the end of the 120-day period Fresenius Medical Care AG & Co. KGaA has been rated by at least two Rating Agencies, it has solicited, Investment Grade. |
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Eine Ratingherabstufung liegt jedoch nicht vor,falls Fresenius Medical Care AG & Co. KGaA (aufgrund einer Beauftragung durch Fresenius Medical Care AG & Co. KGaA) am Ende der 120-Tagesperiode von mindestens zwei Ratingagenturen mit Investment Grade bewertet wird. |
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Rating Category means: |
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Ratingkategorie bezeichnet: |
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(a) with respect to S&P or Fitch, any of the following categories: BB, B, CCC, CC, C and D (or equivalent successor categories); |
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(a) in Bezug auf S&P oder Fitch eine der folgenden Kategorien: BB, B, CCC, CC, C und D (bzw. entsprechende Nachfolgekategorien; |
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(b) with respect to Moodys, any of the following categories: Ba, B, Caa, Ca, C and D (or equivalent successor categories); and |
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(b) in Bezug auf Moodys eine der folgenden Kategorien: Ba, B, Caa, Ca, C und D (bzw. entsprechende Nachfolgekategorien); und |
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(c) the equivalent of any such category of S&P, Moodys or Fitch used by another rating agency in determining whether the rating of Fresenius Medical Care AG & Co. KGaA has decreased by one or more gradations, gradations within rating categories (+ and - for S&P, 1, 2 and 3 for Moodys, + and - for Fitch; or the equivalent gradations for another rating agency) shall be taken into account (e.g., with respect to S&P, a decline in a rating from BB+ to BB, as well as from BB- to B+, will constitute a decrease of one gradation). |
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(c) diesen Kategorien von S&P oder Moodys oder Fitch entsprechende Ratingkategorien einer anderen Ratingagentur. Bei der Bestimmung, ob das Rating von Fresenius Medical Care AG & Co. KGaA um eine oder mehrere Stufen herabgestuft wurde, werden die jeweiligen Ratingkategorien weiter untergliedernde Zusätze (+ und - bei S&P, 1, 2 und 3 bei Moodys, + und - bei Fitch bzw. entsprechende Zusätze anderer Ratingagenturen) berücksichtigt (z. B. entspricht bei S&P eine Ratingänderung von BB+ auf BB oder von BB- auf B+ jeweils einer Herabstufung um eine Stufe). |
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Investment Grade means a rating of (i) BBB- or higher by S&P and Fitch, and (ii) Baa3 or higher by Moodys, or the equivalent of such ratings by S&P, Moodys or Fitch and the equivalent in respect of rating categories of any Rating Agencies substituted for S&P, Moodys or Fitch. |
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Investment Grade bezeichnet ein Rating von (i) BBB- oder höher im Fall von S&P und Fitch und (ii) Baa3 oder höher im Fall von Moodys, oder das entsprechende Äquivalent dieser Ratings im Fall von S&P, Moodys oder Fitch sowie das entsprechende Äquivalent in den Ratingkategorien einer anderen Ratingagentur, durch die S&P, Moodys oder |
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Fitch ersetzt wurde. |
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A Change of Control means the occurrence of one or more of the following events: |
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Ein Kontrollwechsel bezeichnet den Eintritt eines oder mehrerer der folgenden Ereignisse: |
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(a) so long as Fresenius Medical Care AG & Co. KGaA is organized as a KGaA, if the General Partner of Fresenius Medical Care AG & Co. KGaA charged with the management of Fresenius Medical Care AG & Co. KGaA shall at any time fail to be Fresenius SE & Co. KGaA or a subsidiary of Fresenius SE & Co. KGaA, or if Fresenius SE & Co. KGaA shall fail at any time to own or control, directly or indirectly, more than 25 % of the capital stock with ordinary voting power in Fresenius Medical Care AG & Co. KGaA; |
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(a) so lange Fresenius Medical Care AG & Co. KGaA die Rechtsform einer KGaA hat: Wenn es sich bei dem mit der Geschäftsführung von Fresenius Medical Care AG & Co. KGaA beauftragten Komplementär der Gesellschaft zu irgendeinem Zeitpunkt nicht um Fresenius SE & Co. KGaA oder eine Tochtergesellschaft der Fresenius SE & Co. KGaA handelt oder wenn Fresenius SE & Co. KGaA zu irgendeinem Zeitpunkt direkt oder indirekt nicht mehr als 25 % des stimmberechtigten Grundkapitals an Fresenius Medical Care AG & Co. KGaA hält und kontrolliert; |
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(b) if Fresenius Medical Care AG & Co. KGaA is no longer organized as a KGaA, any event the result of which is that (A) any person or group (Relevant Person(s)) acting in concert (as defined in § 30 (2) of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz)) or any person or group acting on behalf of any such Relevant Person(s), other than a Permitted Holder, is or becomes the direct or indirect legal or beneficial ownership or any legal or beneficial entitlement (as defined in § 22 of the German Securities Trading Act (Wertpapierhandelsgesetz)) of, in the aggregate, more than 50% of the voting shares of Fresenius Medical Care AG & Co. KGaA; or |
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(b) wenn Fresenius Medical Care AG & Co. KGaA nicht mehr die Rechtsform einer KGaA hat, ein Ereignis, in dessen Folge (A) eine Person oder mehrere Personen (Relevante Personen), die abgestimmt handeln (wie in § 30 (2) Wertpapiererwerbs- und Übernahmegesetz definiert), oder einer oder mehrere Dritte, die im Auftrag einer solchen Relevanten Personen handeln, mit Ausnahme eines Zulässigen Inhabers, unmittelbar oder mittelbar rechtliches oder wirtschaftliches Eigentum in jedweder Form bzw. die unmittelbare oder mittelbare rechtliches oder wirtschaftliche Verfügungsbefugnis in jedweder Form (wie in § 22 Wertpapierhandelsgesetz beschrieben) an insgesamt mehr als 50% der stimmberechtigten Aktien der Fresenius Medical Care AG & Co. KGaA erlangen; oder |
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(c) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or |
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(c) ein Verkauf, ein Leasing, ein Tausch oder eine sonstige Übertragung (im Rahmen einer einzigen Transaktion |
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substantially all of the assets of Fresenius Medical Care AG & Co. KGaA (held directly or indirectly) to any Relevant Person other than a Permitted Holder, or any person or group acting on behalf of any such Relevant Person(s). |
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oder einer Reihe miteinander zusammenhängender Transaktionen) aller oder aller wesentlichen Vermögenswerte (direkt oder indirekt gehalten) der Fresenius Medical Care AG & Co. KGaA an eine oder mehrere Relevante Personen, mit Ausnahme eines Zulässigen Inhabers, oder einen oder mehrere Dritte, die im Auftrag solcher Relevanten Personen handeln. |
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General Partner means Fresenius Medical Care Management AG, a stock corporation organized under the laws of Germany, including its successors and assigns and other Persons, in each case who serve as the general partner (persönlich haftender Gesellschafter) of Fresenius Medical Care AG & Co. KGaA from time to time. |
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Komplementär bezeichnet die Fresenius Medical Care Management AG, eine Aktiengesellschaft nach deutschem Recht, sowie ihre Nachfolger, Abtretungsempfänger und sonstige Personen, die zum jeweiligen Zeitpunkt als persönlich haftender Gesellschafter von Fresenius Medical Care AG & Co. KGaA auftreten. |
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Person means any individual, corporation, partnership, joint venture, association, jointstock company, trust, unincorporated organization, government or any agency, instrumentality or political subdivision thereof, or any other entity. |
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Person bezeichnet eine natürliche Person, eine Körperschaft, eine Personengesellschaft, ein Joint Venture, eine Vereinigung, eine Aktiengesellschaft, einen Trust, eine Einrichtung ohne eigene Rechtspersönlichkeit, eine staatliche Stelle oder Behörde, eine Gebietskörperschaft oder einen sonstigen Rechtsträger. |
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Permitted Holder means Fresenius SE & Co. KGaA and any of its Affiliates, as long as and to the extent Fresenius SE & Co. KGaA or the relevant Affiliate(s) is or are not acting in concert with, or on behalf of, a Relevant Person(s). |
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Zulässiger Inhaber bezeichnet die Fresenius SE & Co. KGaA und alle mit ihr verbundenen Personen, sofern und soweit die Fresenius SE & Co. KGaA oder eine oder mehrere mit ihr verbundene Person(en) nicht gemeinsam mit oder im Auftrag einer oder mehrerer Relevanten Person(en) handeln. |
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Affiliate of any specified Person means: |
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Verbundene Person einer bestimmten Person bezeichnet: |
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(a) any other Person, directly or indirectly, controlling or controlled by such specified Person, or |
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(a) jede andere Person, die diese Person direkt oder indirekt kontrolliert bzw. direkt oder indirekt von ihr kontrolliert wird, oder |
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(b) under direct or indirect common control with such specified Person. |
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(b) mit dieser bestimmten Person unter direkter oder indirekter gemeinsamer Kontrolle steht. |
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For the purposes of this definition, control when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise (section 15 of the German Stock Corporation Act (Aktiengesetz); and the terms controlling and controlled have meanings correlative to the foregoing. |
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Für den Zweck dieser Definition bezeichnet Kontrolle bei Verwendung in Bezug auf eine Person die Befugnis, deren Geschäftsführung und Unternehmenspolitik direkt oder indirekt zu bestimmen (§ 15 Aktiengesetz), sei es durch den Besitz von stimmberechtigten Kapitalanteilen, eine vertragliche Festlegung oder anderweitig, und die Bedeutung der Begriffe kontrolliert und kontrollieren ist entsprechend zu verstehen. |
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Within 30 days upon the Issuer becoming aware that a Change of Control Triggering Event has occurred, the Issuer shall give notice (a Put Event Notice) to the Holders in accordance with § 12 stating: |
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Innerhalb von 30 Tagen, nachdem die Emittentin von einem Kontrollwechselereignis Kenntnis erlangt hat, wird die Emittentin dies den Gläubigern gemäß § 12 bekannt machen (Vorzeitige Rückkaufsgrunderklärung) und dabei folgendes mitteilen: |
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(a) |
that a Change of Control Triggering Event has occurred; |
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(a) |
dass ein Kontrollwechselereignis eingetreten ist; |
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(b) |
the circumstances and relevant facts regarding such Change of Control Triggering Event; |
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(b) |
die Umstände und relevanten Informationen bezüglich des Kontrollwechselereignisses; |
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(c) |
the repurchase date (which shall be no earlier than 30 days nor later than 60 days from the date such Put Event Notice is given) (the Optional Redemption Date); |
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(c) |
den Tag des Rückkaufs (der nicht früher als 30 und nicht später als 60 Tage nach dem Tag, an dem die Vorzeitige Rückkaufsgrunderklärung erfolgt, liegen darf) (der Stichtag); |
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(d) |
that each Note will be subject to repurchase only in integral multiples the Specified Denomination; and |
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(d) |
dass die Schuldverschreibungen nur in ganzen Vielfachen der Festgelegten Stückelung zurückgekauft werden; und |
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(e) |
the instructions determined by the Issuer that a Holder must follow in order to have its Notes purchased pursuant to this § 5(4). |
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(e) |
die Anweisungen, die ein Gläubiger befolgen muss, damit die Schuldverschreibungen gemäß diesem § 5(4) zurückgekauft werden. |
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In order to exercise such option, the Holder must submit during normal business hours at the specified office of the Fiscal Agent a duly completed option exercise notice in the form available from the specified office of the Fiscal Agent within the period of 20 days after a Put Event Notice is given. No option so exercised may be revoked or withdrawn |
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Um ein solches Recht auszuüben, muss ein Gläubiger während der allgemeinen Geschäftszeiten bei der angegebenen Geschäftsstelle der Emissionsstelle eine vollständig ausgefüllte Ausübungserklärung in der durch die Emissionsstelle bereitgestellten Form innerhalb eines Zeitraums von 20 Tagen nach Bekanntmachung der Vorzeitigen Rückzahlungserklärung übermitteln. |
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without the prior consent of the Issuer. |
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Kein in dieser Form ausgeübtes Recht kann ohne vorherige Zustimmung der Emittentin widerrufen oder zurückgezogen werden. |
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The Issuer will comply with the requirements of any applicable securities laws or regulations in connection with an early redemption of Notes at the option of the Holders upon a Change of Control pursuant to this § 5(4). To the extent that the provisions of any securities laws or regulations or applicable stock exchange listing rules conflict with the provisions of this § 5(4), the Issuer will comply with the applicable securities laws, regulations and listing rules and will not be deemed to have breached its obligations under this § 5(4) by virtue thereof. |
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Die Emittentin wird die Anforderungen der anwendbaren Wertpapiergesetze oder -vorschriften im Zusammenhang mit einer vorzeitigen Rückzahlung von Schuldverschreibungen nach Wahl der Inhaber bei einem Kontrollwechsel gemäß diesem § 5 Abs. 4 erfüllen. Soweit die Bestimmungen eines Wertpapiergesetzes oder -verordnung oder eines anwendbaren Börsenzulassungsregelwerks im Widerspruch zu den Bestimmungen dieses § 5(4) stehen, wird die Emittentin die anwendbaren Wertpapiergesetze, -verordnungen und -regelwerke einhalten und dies wird nicht als Verletzung ihrer Pflichten aus diesem § 5(4) angesehen werden. |
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(5) |
Early Redemption at the Option of the Issuer. |
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(5) |
Vorzeitige Rückzahlung nach Wahl der Emittentin. |
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(a) |
The Issuer may, upon notice given in accordance with clause (b), redeem all or some only of the Notes within the Call Redemption Period(s) at the Call Redemption Amount(s) set forth below together with accrued interest, if any, to (but excluding) the relevant redemption date. |
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(a) |
Die Emittentin kann, nachdem sie gemäß Absatz (b) gekündigt hat, die Schuldverschreibungen insgesamt oder teilweise innerhalb des/der Wahl- Rückzahlungszeitraums/-räume (Call) zum/zu den Wahl-Rückzahlungsbetrag/-beträgen (Call), wie nachfolgend angegeben, nebst etwaigen bis zum maßgeblichen Rückzahlungstag (ausschließlich) aufgelaufenen Zinsen zurückzahlen. |
Call Redemption Period(s) |
Call Redemption Amount(s) |
Wahl-Rückzahlungszeitraum/räume (Call) |
Wahl-Rückzahlungsbe-trag/beträge (Call) |
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February 28, 2026 to May 28, 2026 |
100 percent of the principal amount |
28. Februar 2026 bis 28. Mai 2026 |
100% des Nennbetrags |
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(b) |
Notice of redemption shall be given by the Issuer to the Holders of the Notes in accordance with § 12. Such notice shall specify: |
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(b) |
Die Kündigung ist den Gläubigern der Schuldverschreibungen durch die Emittentin gemäß § 12 bekanntzugeben. Sie muss die folgenden Angaben enthalten: |
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(i) |
the series of Notes subject to redemption; |
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(i) |
die zurückzuzahlende Serie von Schuldverschreibungen; |
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(ii) |
whether such series is to be redeemed in whole or in part only and, if in part only, the aggregate principal amount of the Notes which are to be redeemed; |
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(ii) |
eine Erklärung, ob diese Serie ganz oder teilweise zurückgezahlt wird und im letzteren Fall den Gesamtnennbetrag der zurückzuzahlenden Schuldverschreibungen; |
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(iii) |
the relevant redemption date, which shall be not less than 20 nor more than 40 days after the date on which notice is given by the Issuer to the Holders; and |
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(iii) |
den maßgeblichen Rückzahlungstag, der nicht weniger als 20 und nicht mehr als 40 Tage nach dem Tag der Kündigung durch die Emittentin gegenüber den Gläubigern liegen darf; und |
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(iv) |
the Call Redemption Amount at which such Notes are to be redeemed. |
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(iv) |
den Wahl-Rückzahlungsbetrag (Call), zu dem die Schuldverschreibungen zurückgezahlt werden. |
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(c) |
In the case of a partial redemption of Notes, Notes to be redeemed shall be selected in accordance with the rules of the relevant Clearing System. For technical procedure of the ICSDs, in the case of a partial redemption the outstanding redemption amount will be reflected in the records of the ICSDs as either a reduction in nominal amount or as a pool factor, at the discretion of the ICSDs. |
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(c) |
Wenn die Schuldverschreibungen nur teilweise zurückgezahlt werden, werden die zurückzuzahlenden Schuldverschreibungen in Übereinstimmung mit den Regeln des betreffenden Clearingsystems ausgewählt. Für das technische Verfahren der ICSDs wird im Fall einer teilweisen Rückzahlung der entstehende Rückzahlungsbetrag entweder als reduzierter Nennbetrag oder als Poolfaktor nach Ermessen der ICSDs in das Register der ICSDs aufgenommen. |
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§ 6 |
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§ 6 |
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(THE FISCAL AGENT AND THE PAYING AGENT) |
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(DIE EMISSIONSSTELLE UND DIE ZAHLSTELLE) |
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(1) |
Appointment; Specified Office. |
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Bestellung; bezeichnete Geschäftsstelle. |
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The initial fiscal agent (the Fiscal Agent) and the initial paying agent (the Paying Agent) and its initial specified office shall be: |
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Die anfänglich bestellte Emissionsstelle (die Emissionsstelle) und die anfänglich bestellte Zahlstelle (die Zahlstelle) und ihre bezeichnete Geschäftsstelle lautet wie folgt: |
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Deutsche Bank Aktiengesellschaft |
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Deutsche Bank Aktiengesellschaft |
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Trust & Security Services |
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Trust & Security Services |
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Operations Frankfurt |
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Operations Frankfurt |
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Taunusanlage 12 |
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Taunusanlage 12 |
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60325 Frankfurt am Main |
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60325 Frankfurt am Main |
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Federal Republic of Germany |
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Deutschland |
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The Fiscal Agent and the Paying Agent reserve the right at any time to change their respective specified offices to some other specified office in the same country. |
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Die Emissionsstelle und die Zahlstelle behalten sich das Recht vor, jederzeit ihre jeweiligen bezeichneten Geschäftsstellen durch eine andere bezeichnete Geschäftsstelle in demselben Land zu ersetzen. |
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(2) |
Variation or Termination of Appointment. |
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(2) |
Änderung der Bestellung oder Abberufung. |
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The Issuer reserves the right at any time to vary or terminate the appointment of the Fiscal Agent or any Paying Agent and to appoint another Fiscal Agent or additional or other Paying Agents. The Issuer shall at all times maintain (i) a Fiscal Agent, (ii) so long as the Notes are listed on the Luxembourg Stock Exchange, a Paying Agent (which may be the Fiscal Agent) with a specified office in Luxembourg and/or in such other place as may be required by the rules of such stock exchange and (iii) a Paying Agent in an EU Member State, if possible, that will not be obliged to withhold or deduct tax in connection with any payment made in relation to the Notes unless the Paying Agent would be so obliged in each other EU Member State if it were located there. Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency, when it shall be of immediate effect) after not less than 30 nor more than 45 days prior notice thereof shall have been given to the Holders in accordance with § 12. |
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Die Emittentin behält sich das Recht vor, jederzeit die Bestellung der Emissionsstelle oder einer Zahlstelle zu ändern oder zu beenden und eine andere Emissionsstelle oder zusätzliche oder andere Zahlstellen zu bestellen. Die Emittentin wird zu jedem Zeitpunkt (i) eine Emissionsstelle unterhalten, (ii) solange die Schuldverschreibungen an der Luxemburger Börse notiert sind, eine Zahlstelle (die die Emissionsstelle sein kann) mit bezeichneter Geschäftsstelle in Luxemburg und/oder an solchen anderen Orten unterhalten, die die Regeln dieser Börse verlangen und (iii) eine Zahlstelle in einem Mitgliedsstaat der Europäischen Union, sofern dies möglich ist, unterhalten, die nicht zum Einbehalt oder Abzug von Quellensteuern oder sonstigen Abzügen verpflichtet ist, es sei denn, dass eine solche Einbehalts- oder Abzugspflicht auch in allen anderen Mitgliedsstaaten der Europäischen Union bestünde. Eine Änderung, Abberufung, Bestellung oder ein sonstiger Wechsel wird nur wirksam (außer im Insolvenzfall, in dem eine solche Änderung sofort wirksam wird), sofern die Gläubiger hierüber gemäß § 12 vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen informiert |
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wurden. |
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(3) |
Agent of the Issuer. |
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(3) |
Erfüllungsgehilfe(n) der Emittentin. |
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The Fiscal Agent and the Paying Agent act solely as the agents of the Issuer and do not assume any obligations towards or relationship of agency or trust for any Holder. |
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Die Emissionsstelle und die Zahlstelle handeln ausschließlich als Erfüllungsgehilfen der Emittentin und übernehmen keinerlei Verpflichtungen gegenüber den Gläubigern und es wird kein Auftrags- oder Treuhandverhältnis zwischen ihnen und den Gläubigern begründet. |
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§ 7 |
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§ 7 |
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(TAXATION) |
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(STEUERN) |
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All payments of principal and interest made by the Issuer in respect of the Notes to the Holders shall be made free and clear of, and without withholding or deduction for, any present or future taxes or duties of whatever nature imposed or levied by way of deduction or withholding by or on behalf of (1) the Federal Republic of Germany or any authority therein or thereof having power to tax, (2) any jurisdiction from or through which payment on the Notes or the Guarantee is made, or any political subdivision or governmental authority thereof or therein having the power to tax and/or (3) any other jurisdiction in which the payor is organized or otherwise considered to be resident or doing business for tax purposes, or any political subdivision or governmental authority thereof or therein having the power to tax (each a Relevant Taxing Jurisdiction), unless such deduction or withholding is required by law. In that event the Issuer shall pay such additional amounts (the Additional Amounts) as shall result in receipt by the Holders of such amounts as would have been received by them had no such withholding or deduction been required, except that no Additional Amounts shall be payable with respect to: |
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Alle in Bezug auf die Schuldverschreibungen von der Emittentin an die Gläubiger zahlbaren Kapitaloder Zinsbeträge werden ohne Einbehalt oder Abzug an der Quelle für oder wegen gegenwärtiger oder zukünftiger Steuern oder Abgaben gleich welcher Art gezahlt, die von oder im Namen (1) der Bundesrepublik Deutschland oder einer dort zur Steuererhebung ermächtigten Behörde, (2) einer Rechtsordnung, aus der bzw. über die eine Zahlung auf die Schuldverschreibungen oder die Garantie geleistet wird, oder einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde, und/oder (3) einer anderen Rechtsordnung, in der die zahlende Partei errichtet ist oder anderweitig als gebietsansässig gilt oder im steuerlichen Sinn geschäftlich tätig ist, oder einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde (jeweils eine Relevante Steuerjurisdiktion) im Wege des Abzugs oder Einbehalts auferlegt oder erhoben werden, es sei denn, ein solcher Abzug oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin diejenigen zusätzlichen Beträge (Zusätzliche Beträge) zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen an Kapital und Zinsen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Gläubigern erhalten worden wären; jedoch sind solche Zusätzlichen Beträge nicht zu zahlen in Bezug auf: |
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(a) |
taxes or duties which are payable by any Person acting as custodian bank |
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(a) |
Steuern oder Abgaben, die von einer als Depotbank oder Inkassobeauftragter |
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or collecting agent on behalf of a Holder, or otherwise in any manner which does not constitute a deduction or withholding by the Issuer or the Guarantor, as applicable, from payments of principal or interest made by it; or |
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eines Gläubigers handelnden Person oder auf eine sonstige Weise zu entrichten sind, die keinen Abzug oder Einbehalt von Zahlungen von Kapital oder Zinsen durch die Emittentin bzw. die Garantiegeberin darstellen; oder |
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(b) |
payments that would not have been so imposed but for the existence of any present or former connection between such Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or a person having a controlling power over, such Holder) and any Relevant Taxing Jurisdiction including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or person having such a controlling power) being or having been a citizen or resident or treated as a resident of, being or having been engaged in a trade or business in, or having or having had a permanent establishment in, a Relevant Taxing Jurisdiction other than any connections arising solely from a Holder acquiring, holding or disposing of, receiving any payment under or with respect to or enforcing a Note or any Guarantee; or |
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(b) |
Zahlungen, die nicht erhoben worden wären, wenn nicht (i) eine gegenwärtige oder ehemalige Beziehung zwischen dem betreffenden Gläubiger (oder einem Treuhänder, Treugeber, Begünstigten, Mitglied oder Gesellschafter dieses Gläubigers oder einer Person, die beherrschenden Einfluss auf diesen Gläubiger hat) und einer Relevanten Steuerjurisdiktion bestehen würde, unter anderem in der Form, dass der betreffende Gläubiger (bzw. Treuhänder, Treugeber, Begünstigte, Mitglied, Gesellschafter oder die Person, die beherrschenden Einfluss hat) Staatsbürger einer Relevanten Steuerjurisdiktion ist oder war oder dort ansässig ist oder war oder als dort ansässig gilt oder galt oder dort ein Gewerbe oder eine Geschäftstätigkeit betreibt oder betrieben hat oder dort eine Betriebsstätte unterhält oder unterhalten hat, mit Ausnahme von Beziehungen, die allein dadurch entstehen, dass ein Gläubiger eine Schuldverschreibung oder die Garantie erwirbt, hält oder veräußert bzw. eine Zahlung darunter oder in Bezug auf diese erhält oder Ansprüche darauf geltend macht; oder |
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(c) |
payments to, or to a third party on behalf of, a Holder where no such withholding or deduction would have been required to be made if the Notes were credited at the time of payment to a securities deposit account with a bank, financial services institution, securities trading business or securities trading bank, in each |
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(c) |
Zahlungen an den Gläubiger oder an einen Dritten für den Gläubiger, falls kein Einbehalt oder Abzug hätte erfolgen müssen, wenn die Schuldverschreibung zum Zeitpunkt der fraglichen Zahlung einem Depotkonto bei einer bzw. einem nicht in der Relevanten Steuerjurisdiktion ansässigen Bank, Finanzdienstleistungsinstitut, |
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case outside the Relevant Taxing Jurisdiction; or |
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Wertpapierhandelsunternehmen oder Wertpapierhandelsbank gutgeschrieben gewesen wäre; oder |
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(d) |
payments where such withholding or deduction is imposed pursuant to (i) any European Union Directive or Regulation concerning the taxation of savings, or (ii) any international treaty or understanding relating to such taxation and to which the Relevant Taxing Jurisdiction or the European Union is a party/are parties, or (iii) any provision of law implementing, or complying with, or introduced to conform with, such Directive, Regulation, treaty or understanding, or (iv) the Luxembourg law of 23 December 2005; or |
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falls der Einbehalt oder Abzug gemäß (i) einer Richtlinie oder Verordnung der Europäischen Union zur Zinsbesteuerung oder (ii) einem internationalen Abkommen oder Übereinkommen zu einer solchen Besteuerung, bei dem die Relevante Steuerjurisdiktion oder die Europäische Union Parteien sind, oder (iii) einem diese Richtlinie oder Verordnung oder dieses Abkommen oder Übereinkommen umsetzenden oder sie befolgenden oder zu ihrer Befolgung erlassenen Gesetz, oder (iv) dem Luxemburger Gesetz vom 23. Dezember 2005 erhoben wird; oder |
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(e) |
payments to the extent such withholding or deduction is payable by or on behalf of a Holder who could lawfully mitigate (but has not so mitigated) such withholding or deduction by complying or procuring that any third party complies with any statutory requirements or by making or procuring that a third party makes a declaration of non-residence or other similar claim for exemption to any tax authority in the place where the payment is effected (including, in the case of a payment by a Paying Agent situated in the United States, by providing prior to the receipt of any such payment, a complete, correct and executed IRS Form W-8 or W-9 or successor form, as applicable, with all appropriate attachments); or |
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soweit der Einbehalt oder Abzug von dem Gläubiger oder von einem Dritten für den Gläubiger zahlbar ist, der einen solchen Einbehalt oder Abzug dadurch rechtmäßigerweise hätte vermindern können (aber nicht vermindert hat), dass er gesetzliche Vorschriften beachtet, oder dafür sorgt, dass Dritte dieses tun, oder dadurch dass er eine Nichtansässigkeitserklärung oder einen ähnlichen Antrag auf Quellensteuerbefreiung gegenüber der am Zahlungsort zuständigen Steuerbehörde; abgibt oder dafür sorgt, dass dies durch einen Dritten erfolgt (einschließlich, im Falle einer Zahlung durch eine Zahlstelle mit Sitz in den Vereinigten Staaten, durch Bereitstellung eines vollständigen, korrekten und ausgefüllten IRS-Formulars W-8 oder W-9 oder eines Nachfolgeformulars, falls zutreffend, mit allen entsprechenden Anlagen); oder |
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(f) |
payments to the extent such withholding or deduction is payable by or on behalf of a Holder who would have |
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soweit der Einbehalt oder Abzug von dem Gläubiger oder von einem Dritten für den Gläubiger vorzunehmen |
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been able to mitigate such withholding or deduction by effecting a payment via another Paying Agent in a Member State of the European Union, not obliged to withhold or deduct tax; or |
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ist, der einen solchen Einbehalt oder Abzug durch die Bewirkung einer Zahlung über eine andere Zahlstelle in einem Mitgliedsstaat der Europäischen Union, welche nicht zu einem solchen Einbehalt oder Abzug verpflichtet ist, hätte vermindern können; oder |
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(g) |
payments to the extent such withholding or deduction is for or on account of the presentation by the Holder of any Note for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later; or |
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(g) |
soweit der Einbehalt oder Abzug für einen Gläubiger oder dessen Rechnung vorzunehmen ist, der Schuldverschreibungen mehr als 30 Tage nach dem Tag, an dem eine Zahlung unter den Schuldverschreibungen fällig und zahlbar wurde bzw., soweit dies später eintritt, nach dem Tag, an dem die Zahlung ordnungsgemäß vorgenommen wurde, vorgelegt hat; oder |
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(h) |
payments to the extent such withholding or deduction is required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the Internal Revenue Code), or any amended or successor version thereof, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Internal Revenue Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Internal Revenue Code; or |
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(h) |
soweit der Einbehalt oder Abzug gemäß §§ 1471 bis 1474 des U.S. Internal Revenue Code von 1986 in seiner jeweils gültigen Fassung (der Internal Revenue Code), oder einer geänderten oder nachfolgenden Fassung davon, jeder gegenwärtigen oder zukünftigen Verordnung oder offiziellen Auslegung davon, jeder Vereinbarung, die gemäß § 1471(b) des Internal Revenue Codes eingegangen wurde oder jeder steuerlichen oder regulatorischen Gesetzgebung, sowie steuerlichen und regulatorischen Gesetzen oder Vorgehensweisen, die nach einem völkerrechtlichen Vertrag, der zur Umsetzung der Bestimmungen des Internal Revenue Codes geschlossen wurde, vorzunehmen ist; oder |
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(i) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder holding or owning, actually or constructively, 10% or more of the total combined voting power of all classes |
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(i) |
jede Steuer, die von den Vereinigten Staaten oder einer ihrer politischen Unterabteilungen oder Regierungsbehörden auf Zinsen erhoben wird, weil ein Inhaber tatsächlich oder konstruktiv 10 % oder mehr der gesamten kombinierten Stimmrechte aller |
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of stock of the Issuer or the Guarantor entitled to vote; or |
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Aktiengattungen der Emittentin oder der Garantiegeberin hält oder besitzt; oder |
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(j) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder being a controlled foreign corporation that is a related person within the meaning of Section 864(d)(4) of the Internal Revenue Code with respect to the Issuer or the Guarantor; or |
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(j) |
jede Steuer, die von den Vereinigten Staaten oder einer politischen Unterabteilung oder Regierungsbehörde der Vereinigten Staaten oder darin erhoben wird, weil ein Inhaber eine kontrollierte ausländische Körperschaft ist, die eine verwandte Person im Sinne von Section 864(d)(4) des Internal Revenue Code in Bezug auf die Emittentin oder die Garantiegeberin ist; oder |
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(k) |
any tax imposed on interest by the United States or any political subdivision or governmental authority thereof or therein by reason of any Holder being a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business; or |
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(k) |
jede Steuer, die von den Vereinigten Staaten oder einer politischen Unterabteilung oder Regierungsbehörde der Vereinigten Staaten oder darin erhoben wird, weil ein Inhaber eine Bank ist, die einen Kredit gemäß einem Kreditvertrag gewährt, der im normalen Geschäftsverkehr abgeschlossen wurde; oder |
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(l) |
any combination of items (a)-(k); |
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(l) |
jegliche Kombination der Absätze (a)-(k). |
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nor shall any Additional Amounts be paid with respect to any payment on a Note to a Holder who is a fiduciary or partnership or who is other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Relevant Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Holder of the Note. |
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Zudem werden keine Zusätzlichen Beträge im Hinblick auf Zahlungen auf die Schuldverschreibungen an einen Gläubiger gezahlt, welcher die Zahlung als Treuhänder oder Personengesellschaft oder als sonstiger nicht alleiniger wirtschaftlicher Eigentümer erhält, soweit nach den Gesetzen der Relevanten Steuerjurisdiktion(en) eine solche Zahlung für Steuerzwecke dem Einkommen des Begünstigten bzw. Gründers eines Treuhandvermögens oder dem Gesellschafter der Personengesellschaft zugerechnet würde, der jeweils selbst nicht zum Erhalt von Zusätzlichen Beträgen berechtigt gewesen wäre, wenn der Begünstigte, Gründer eines Treuhandvermögens, Gesellschafter oder wirtschaftliche Eigentümer unmittelbarer Gläubiger der Schuldverschreibungen wäre. |
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For the avoidance of doubt: No Additional Amounts will be paid with respect to German capital gains tax (Kapitalertragsteuer), including withholding tax (Abgeltungsteuer), to be deducted or withheld pursuant to the German Income Tax Act, even if the deduction or withholding has to be made by the Issuer or its representative, and the German Solidarity Surcharge (Solidaritätszuschlag) or any other tax which may substitute the German capital gains tax (Kapitalertragsteuer) or solidarity surcharge (Solidaritätszuschlag), as the case may be. |
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Zur Klarstellung: Keine Zusätzlichen Beträge werden gezahlt in Bezug auf die deutsche Kapitalertragsteuer (inklusive der sog. Abgeltungsteuer), die nach dem deutschen Einkommensteuergesetz abgezogen oder einbehalten wird, auch wenn der Abzug oder Einbehalt durch die Emittentin oder ihren Vertreter vorzunehmen ist, und den deutschen Solidaritätszuschlag oder jede andere Steuer, welche die deutsche Kapitalertragsteuer bzw. den Solidaritätszuschlag ersetzen sollte. |
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§ 8 |
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§ 8 |
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(PRESENTATION PERIOD) |
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(VORLEGUNGSFRIST) |
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The presentation period provided in § 801 paragraph 1, sentence 1 BGB (German Civil Code) is reduced to ten years for the Notes. |
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Die in § 801 Absatz 1 Satz 1 BGB bestimmte Vorlegungsfrist wird für die Schuldverschreibungen auf zehn Jahre verkürzt. |
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§ 9 |
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§ 9 |
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(EVENTS OF DEFAULT) |
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(KÜNDIGUNG) |
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(1) |
Events of default. |
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(1) |
Kündigungsgründe. |
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Each Holder shall be entitled to declare due and payable by notice to the Fiscal Agent its entire claims arising from the Notes and demand immediate redemption thereof at the principal amount together with accrued interest (if any) to (but excluding) the date of repayment, in the event that: |
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Jeder Gläubiger ist berechtigt, seine sämtlichen Forderungen aus den Schuldverschreibungen durch Kündigung gegenüber der Emissionsstelle fällig zu stellen und die unverzügliche Rückzahlung zum Nennbetrag, zuzüglich etwaiger bis zum Tag der Rückzahlung (ausschließlich) aufgelaufener Zinsen zu verlangen, falls: |
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(a) |
the Issuer fails to pay principal or interest under the Notes within 30 days from the relevant due date, or |
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(a) |
die Emittentin auf die Schuldverschreibungen Kapital oder Zinsen nicht innerhalb von 30 Tagen nach dem betreffenden Fälligkeitstag zahlt; oder |
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(b) |
the Guarantor fails to pay amounts payable under the Guarantee within 30 days from the relevant due date, or |
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(b) |
die Garantiegeberin auf die Garantie zahlbare Beträge nicht innerhalb von 30 Tagen nach dem Fälligkeitstag zahlt; oder |
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(c) |
the Issuer fails to duly perform any other material obligation arising from the Notes and such failure continues |
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(c) |
die Emittentin die ordnungsgemäße Erfüllung irgendeiner anderen wesentlichen Verpflichtung aus den |
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unremedied for more than 60 days after the Fiscal Agent has received a request thereof in the manner set forth in § 9(3) from a Holder to perform such obligation; or |
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Schuldverschreibungen unterlässt und die Unterlassung jeweils länger als 60 Tage fortdauert, nachdem die Emissionsstelle eine Aufforderung in der in § 9(3) vorgesehenen Art und Weise von dem Gläubiger erhalten hat, die Verpflichtung zu erfüllen; oder |
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(d) any Capital Market Indebtedness of the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) becomes prematurely repayable as a result of a default in respect of the terms thereof, or the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) fails to fulfill any payment obligation in excess of EUR 75,000,000 or the equivalent thereof under any Capital Market Indebtedness or under any guarantees or suretyships given for any Capital Market Indebtedness of others within 30 days from its due date or, in the case of such guarantee or suretyship, within 30 days of such guarantee or suretyship being invoked, unless the Issuer or the relevant Material Subsidiary or the Guarantor contests in good faith that such payment obligation exists or is due or that such guarantee or suretyship has been validly invoked or if a security granted therefor is enforced on behalf of or by the creditor(s) entitled thereto; or |
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(d) eine Kapitalmarktverbindlichkeit der Emittentin oder einer ihrer Wesentlichen Tochtergesellschaften oder der Garantiegeberin (es sei denn, die Garantie wurde gemäß diesen Emissionsbedingungen freigegeben) vorzeitig zahlbar wird aufgrund einer Pflichtverletzung aus dem dieser Kapitalmarktverbindlichkeit zugrunde liegenden Vertrag oder die Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß diesen Emissionsbedingungen freigegeben) eine Zahlungsverpflichtung in Höhe oder im Gegenwert von mehr als EUR 75.000.000 aus einer Kapitalmarktverbindlichkeit oder aufgrund einer Bürgschaft oder Garantie, die für Kapitalmarktverbindlichkeiten Dritter gegeben wurde, nicht innerhalb von 30 Tagen nach ihrer Fälligkeit bzw. im Fall einer Bürgschaft oder Garantie nicht innerhalb von 30 Tagen nach Inanspruchnahme aus dieser Bürgschaft oder Garantie erfüllt, es sei denn, die Emittentin oder die betreffende Wesentliche Tochtergesellschaft oder die Garantiegeberin bestreitet in gutem Glauben, dass diese Zahlungsverpflichtung besteht oder fällig ist bzw. diese Bürgschaft oder Garantie berechtigterweise geltend gemacht wird, oder falls eine für solche Verbindlichkeiten bestellte Sicherheit für die oder von den daraus berechtigten Gläubiger(n) in Anspruch genommen wird; oder |
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(e) the Issuer or any of its Material Subsidiaries or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) announces its inability to meet its financial obligations or ceases its payments generally; or |
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(e) die Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) gibt ihre Zahlungsunfähigkeit bekannt oder stellt ihre Zahlungen ein; oder |
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(f) a court opens insolvency proceedings against the Issuer or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) and such proceedings are instituted and have not been discharged or stayed within 90 days, or the Issuer applies for or institutes such proceedings; or |
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(f) ein Gericht ein Insolvenzverfahren gegen die Emittentin oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) eröffnet, und ein solches Verfahren eingeleitet und nicht innerhalb von 90 Tagen aufgehoben oder ausgesetzt worden ist, oder die Emittentin die Eröffnung eines solchen Verfahrens beantragt oder einleitet; oder |
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(g) the Issuer or the Guarantor (unless the Guarantee has been released in accordance with these Terms and Conditions) enters into liquidation unless this is done in connection with a merger or other form of combination with another company and such company assumes all obligations contracted by the Issuer or the Guarantor in connection with the Notes or the Guarantee; or |
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(g) die Emittentin oder die Garantiegeberin (es sei denn, die Garantie wurde gemäß dieser Emissionsbedingungen freigegeben) in Liquidation tritt, es sei denn, dies geschieht im Zusammenhang mit einer Verschmelzung oder einer anderen Form des Zusammenschlusses mit einer anderen Gesellschaft und die andere oder neue Gesellschaft übernimmt alle Verpflichtungen, die die Emittentin oder die Garantiegeberin im Zusammenhang mit den Schuldverschreibungen oder der Garantie eingegangen ist; oder |
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(h) the Guarantee shall cease to be in full force and effect in accordance with its terms for any reason except pursuant to these Terms and Conditions or terms of the Guarantee governing the release of the Guarantee or the satisfaction in full of all the obligations thereunder or shall be declared invalid or unenforceable other than as contemplated by its terms, or the Guarantor shall repudiate, deny or disaffirm any of its obligations thereunder or under the Terms and Conditions. |
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(h) die Garantie aus irgendeinem Grund nicht mehr gemäß ihren Bedingungen uneingeschränkt wirksam ist, es sei denn, dies beruht auf diesen Emissionsbedingungen oder den Bedingungen der Garantie bezüglich der Freigabe der Garantie oder der vollständigen Erfüllung aller diesbezüglichen Verpflichtungen, oder aus anderen Gründen als in ihren Bedingungen festgelegt für unwirksam oder undurchsetzbar erklärt wird, oder die Garantiegeberin eine ihrer Verpflichtungen aus der Garantie oder aus den |
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Emissionsbedingungen zurückweist, leugnet oder ablehnt. |
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Material Subsidiary means any Subsidiary of Fresenius Medical Care AG & Co. KGaA which: |
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Wesentliche Tochtergesellschaft bezeichnet eine Tochtergesellschaft von Fresenius Medical Care AG & Co. KGaA: |
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(i) has unconsolidated EBITDA representing 5% or more of the EBITDA of Fresenius Medical Care AG & Co. KGaA and its subsidiaries on a consolidated basis; or |
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(i) deren unkonsolidiertes EBITDA 5% oder mehr des EBITDA der Fresenius Medical Care AG & Co. KGaA und ihrer Tochtergesellschaften auf einer konsolidierten Basis darstellt, oder |
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(ii) has unconsolidated gross assets representing 5% or more of the gross assets of Fresenius Medical Care AG & Co. KGaA and its subsidiaries on a consolidated basis, |
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(ii) deren unkonsolidiertes Bruttovermögen 5% oder mehr des Bruttovermögens der Fresenius Medical Care AG & Co. KGaA und ihrer Tochtergesellschaften auf einer konsolidierten Basis darstellt, |
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in each case as determined by reference to the latest audited annual financial statements prepared in accordance with IFRS. |
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in allen Fällen bestimmt nach dem letzten geprüften Jahresabschluss, die in Übereinstimmung mit IFRS erstellt wurden. |
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EBITDA means operating income plus depreciation and amortization and is derived from the operating income determined in accordance with IFRS. |
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EBITDA entspricht dem Operativen Ergebnis zuzüglich Abschreibungen und wird von dem nach IFRS ermittelten Operativen Ergebnis abgeleitet. |
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(2) |
No Termination. |
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(2) |
Keine Kündigung. |
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The right to declare Notes due shall terminate if the situation giving rise to it has been cured before the right is exercised. |
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Das Kündigungsrecht erlischt, falls der Kündigungsgrund vor Ausübung des Rechts geheilt wurde. |
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(3) |
Notice. |
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(3) |
Kündigungserklärung. |
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Any default notice in accordance with § 9(1) shall be made at least in text form (section 126b of the German Civil Code, Bürgerliches Gesetzbuch) to the specified office of the Fiscal Agent together with evidence by means of a certificate of the Holders Custodian (as defined in § 14(3)) that such Holder, at the time of such notice, is a holder of the relevant Notes. |
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Eine Kündigungserklärung gemäß § 9(1) hat in der Weise zu erfolgen, dass der Gläubiger bei der angegebenen Geschäftsstelle der Emissionsstelle eine entsprechende Erklärung zumindest in Textform (§ 126 Bürgerliches Gesetzbuch) übergibt und dabei durch eine Bescheinigung seiner Depotbank (wie in § 14(3) definiert) nachweist, dass er die betreffenden Schuldverschreibungen zum Zeitpunkt der Erklärung hält. |
(4) |
Quorum. |
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(4) |
Quorum. |
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In the events specified in subparagraph (1)(c) and/or (d) of this § 9, any notice declaring Notes due shall, unless at the time such notice is received any of the events specified in subparagraph (1) (a), (b) and (e) through (g) of this § 9 entitling Holders to declare their Notes due has occurred, become effective only when the Fiscal Agent has received such default notices from the Holders representing at least 25% of the aggregate principal amount of Notes then outstanding. |
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In den Fällen gemäß Absatz (1)(c) und/oder (d) dieses § 9 wird eine Kündigungserklärung, sofern nicht bei deren Eingang zugleich einer der in Absatz (1)(a), (b) und (e) bis (g) dieses § 9 bezeichneten Kündigungsgründe vorliegt, erst wirksam, wenn bei der Emissionsstelle Kündigungserklärungen von Gläubigern im Nennbetrag von mindestens 25% des Gesamtnennbetrages der zu diesem Zeitpunkt noch insgesamt ausstehenden Schuldverschreibungen eingegangen sind. |
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§ 10 |
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§ 10 |
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(SUBSTITUTION) |
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(ERSETZUNG) |
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(1) |
Substitution. |
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(1) |
Ersetzung |
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The Issuer (reference to which shall always include any previous Substitute Debtor (as defined below)) may, at any time, if no payment of principal of or interest on any of the Notes is in default, without the consent of the Holders, substitute for the Issuer any Affiliate (as defined below) of Fresenius Medical Care AG & Co. KGaA as the principal debtor in respect of all obligations arising from or in connection with the Notes (any such company, the Substitute Debtor), provided that: |
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Die Emittentin (wobei eine Bezugnahme auf die Emittentin auch alle früheren Nachfolgeschuldner (wie nachfolgend definiert) umfasst) ist jederzeit berechtigt, wenn kein Zahlungsverzug hinsichtlich Kapital oder Zinsen auf die Schuldverschreibungen vorliegt, ohne weitere Zustimmung der Gläubiger ein mit der Fresenius Medical Care AG & Co. KGaA verbundenes Unternehmen (wie nachfolgend definiert) an ihrer Stelle als Hauptschuldnerin (ein solches Unternehmen ist die Nachfolgeschuldnerin) für alle Verpflichtungen aus und im Zusammenhang mit den Schuldverschreibungen einzusetzen, vorausgesetzt, dass: |
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(a) the Substitute Debtor assumes all obligations of the Issuer in respect of the Notes and is in a position to fulfill all payment obligations arising from or in connection with the Notes in the Specified Currency without, subject to lit. (e) below, the necessity of any taxes or duties levied by the country or jurisdiction in which the Substitute Debtor is domiciled (other than taxes which would also be levied in the absence of such substitution) to be withheld or deducted at source and |
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(a) die Nachfolgeschuldnerin alle Verpflichtungen der Emittentin im Zusammenhang mit den Schuldverschreibungen rechtswirksam übernimmt und sie sämtliche sich aus oder im Zusammenhang mit den Schuldverschreibungen ergebenden Zahlungsverpflichtungen in der Festgelegten Währung ohne die Notwendigkeit (vorbehaltlich Buchstabe (e)) einer Einbehaltung an der Quelle oder des Abzugs irgendwelcher Steuern oder Abgaben in dem Land oder |
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to transfer all amounts which are required therefore to the Paying Agent without any restrictions, and that in particular all necessary authorizations to this effect by any competent authority have been obtained, and, to the extent service of process must be effected to the Substitute Debtor outside of Germany, a service of process agent in Germany is appointed; |
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Hoheitsgebiet, in dem die Nachfolgeschuldnerin ihren Sitz hat (mit Ausnahme von Steuern, die auch angefallen wären, wäre die Ersetzung nicht erfolgt), erfüllen sowie die hierzu erforderlichen Beträge ohne Beschränkungen an die Zahlstelle transferieren kann und sie insbesondere jede hierfür notwendige Genehmigung der Behörden ihres Landes erhalten hat, und, sofern eine Zustellung an die Nachfolgeschuldnerin außerhalb von Deutschland erfolgen müsste, ein Zustellungsbevollmächtigter in Deutschland bestellt wird; |
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(b) if at the time of such substitution the Issuer is Fresenius Medical Care AG & Co. KGaA, the Issuer irrevocably and unconditionally guarantees (the Substitution Guarantee) in favor of each Holder the payment of all sums payable by the Substitute Debtor in respect of the Notes on terms equivalent to the terms of the Guarantee; |
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(b) wenn zum Zeitpunkt der Ersetzung Fresenius Medical Care AG & Co. KGaA die Emittentin ist, die Emittentin unwiderruflich und unbedingt gegenüber den Gläubigern die Zahlung aller von der Nachfolgeschuldnerin auf die Schuldverschreibungen zahlbaren Beträge zu Bedingungen garantiert (die Ersetzungsgarantie), die den Bedingungen der Garantie entsprechen; |
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(c) the Substitute Debtor and the Issuer have obtained all necessary governmental and regulatory approvals and consents for such substitution and for the giving by the Issuer of the Substitution Guarantee in respect of the obligations of the Substitute Debtor, that the Substitute Debtor has obtained all necessary governmental and regulatory approvals and consents for the performance by the Substitute Debtor of its obligations under the Notes, and that all such approvals and consents are in full force and effect and that the obligations assumed by the Substitute Debtor and the Substitution Guarantee given by the Issuer are each valid and binding in accordance with their respective terms and enforceable by |
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(c) die Nachfolgeschuldnerin und die Emittentin alle für die Ersetzung und die Abgabe der Ersetzungsgarantie von der Emittentin notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten haben, die Nachfolgeschuldnerin alle für die Erfüllung ihrer Verpflichtungen aus den Schuldverschreibungen notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten hat und weiterhin sämtliche dieser Genehmigungen und Einverständniserklärungen in vollem Umfang gültig und wirksam sind und zudem die Verpflichtungen der Nachfolgeschuldnerin und die von der Emittentin begebene Ersetzungsgarantie gemäß ihren Bestimmungen wirksam |
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each Holder; |
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und rechtsverbindlich und durch jeden Gläubiger durchsetzbar sind; |
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(d) § 9 shall be deemed to be amended so that it shall also be an Event of Default under such provision if the Substitution Guarantee shall cease to be valid or binding on or enforceable against Fresenius Medical Care AG & Co. KGaA; |
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(d) § 9 dergestalt als ergänzt gilt, dass ein zusätzlicher Kündigungsgrund unter dieser Bestimmung der Wegfall der Wirksamkeit, Rechtsverbindlichkeit oder Durchsetzbarkeit der Ersetzungsgarantie gegen Fresenius Medical Care AG & Co. KGaA ist; |
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(e) the Substitute Debtor undertakes to reimburse any Holder for such taxes, fees or duties which may be imposed upon such Holder in connection with any payments on the Notes (including taxes or duties being deducted or withheld at source), upon conversion or otherwise, as a consequence of the assumption of the Issuers obligations by the Substitute Debtor, provided that such undertaking shall be limited to amounts that would not have been imposed upon the Holder had such substitution not occurred; and |
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(e) die Nachfolgeschuldnerin sich verpflichtet, jedem Gläubiger alle Steuern, Gebühren oder Abgaben zu erstatten, die ihm im Zusammenhang mit Zahlungen auf die Schuldverschreibungen (einschließlich Steuern und Abgaben, die an der Quelle abgeführt oder einbehalten wurden), durch den Schuldnerwechsel oder in anderer Weise infolge der Schuldübernahme durch die Nachfolgeschuldnerin auferlegt werden, vorausgesetzt, dass sich die Verpflichtung auf Beträge beschränkt, die der Gläubiger ohne die Ersetzung der Emittentin nicht hätte tragen müssen; und |
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(f) there shall have been delivered to the Fiscal Agent one opinion for each jurisdiction affected of lawyers of recognized standing to the effect that subparagraphs (a) through (e) above have been satisfied. |
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(f) der Emissionsstelle jeweils ein Rechtsgutachten bezüglich der betroffenen Rechtsordnungen von anerkannten Rechtsanwälten vorgelegt wurden, die bestätigen, dass die Bestimmungen in den vorstehenden Unterabsätzen (a) bis (e) erfüllt wurden. |
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For purposes of this § 10, Affiliate shall mean any affiliated company (verbundenes Unternehmen) within the meaning of sections 15 et seqq. of the German Stock Corporation Act (Aktiengesetz) held by Fresenius Medical Care AG & Co. KGaA. |
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Für Zwecke dieses § 10 bedeutet verbundenes Unternehmen jedes von Fresenius Medical Care AG & Co. KGaA gehaltene verbundene Unternehmen im Sinne der §§ 15 ff. Aktiengesetz. |
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(2) |
Discharge from Obligations. References. |
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(2) |
Schuldbefreiung. Bezugnahmen. |
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Upon a substitution in accordance with this § 10, the Substitute Debtor shall be deemed to be named in the Notes as the principal |
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Nach einer Ersetzung gemäß dieses § 10 gilt die Nachfolgeschuldnerin als in den Schuldverschreibungen an Stelle der Emittentin als |
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debtor in place of the Issuer as issuer and the Notes shall thereupon be deemed to be amended to give effect to the substitution including that the relevant jurisdiction in relation to the Issuer in § 7 shall be the Substitute Debtors country of domicile for tax purposes. Furthermore, in the event of such substitution, in § 7 and § 5(2) an alternative reference to the Federal Republic of Germany shall be deemed to have been included in addition to the reference according to the preceding sentence to the country of domicile or residence for taxation purposes of the Substitute Debtor. |
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Hauptschuldnerin bestimmt und die Schuldverschreibungen gelten als dementsprechend ergänzt, um der Ersetzung zur Durchsetzung zu verhelfen, und als die relevante Steuerjurisdiktion in Bezug auf § 7 gilt die Jurisdiktion, in der die Nachfolgeschuldnerin steuerlich ansässig ist. Desweiteren gilt im Fall einer Ersetzung in § 7 und § 5(2) eine alternative Bezugnahme auf die Bundesrepublik Deutschland als aufgenommen (zusätzlich zu der Bezugnahme nach Maßgabe des vorstehenden Satzes auf das Land, in dem die Nachfolgeschuldnerin ihren Sitz oder Steuersitz hat). |
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Any such substitution, together with the notice referred to in subparagraph (3) below, shall, in the case of the substitution of any other company as principal debtor, operate to release the Issuer as issuer from all of its obligations as principal debtor in respect of the Notes. |
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Jede Ersetzung zusammen mit der Mitteilung gemäß Absatz 3 dieser Bestimmung befreit, im Fall der Einsetzung einer anderen Gesellschaft als Hauptschuldnerin, die Emittentin von allen Verbindlichkeiten, die sie als Hauptschuldnerin unter den Schuldverschreibungen hatte. |
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(3) |
Notification to Holders. |
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(3) |
Benachrichtigung der Gläubiger. |
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Not later than 15 Payment Business Days after effecting the substitution, the Substitute Debtor shall give notice thereof to the Holders and, if any Notes are listed on any stock exchange, to such stock exchange in accordance with § 12 and to any other person or authority as required by applicable laws or regulations. |
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Spätestens 15 Zahltage nach Durchführung der Ersetzung wird die Nachfolgeschuldnerin dies den Gläubigern und, sollten die Schuldverschreibungen an einer Börse notiert sein, dieser Börse gemäß § 12 mitteilen und jede andere Person oder Stelle, gemäß den anwendbaren Gesetzen und Regelungen in formieren. |
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§ 11 |
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§ 11 |
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(FURTHER ISSUES, PURCHASES AND CANCELLATION) |
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(BEGEBUNG WEITERER SCHULDVERSCHREIBUNGEN, ANKAUF UND ENTWERTUNG) |
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(1) |
Further Issues. |
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(1) |
Begebung weiterer Schuldverschreibungen. |
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The Issuer may from time to time, without the consent of the Holders, issue further Notes having the same terms and conditions as the Notes in all respects (or in all respects except for the issue date, interest commencement date and/or issue price) so as to form a single series with the Notes. |
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Die Emittentin ist berechtigt, jederzeit ohne Zustimmung der Gläubiger weitere Schuldverschreibungen mit gleicher Ausstattung (gegebenenfalls mit Ausnahme des Tags der Begebung, des Verzinsungsbeginns und/oder des Ausgabepreises) in der Weise zu begeben, dass sie mit diesen Schuldverschreibungen |
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eine einheitliche Serie bilden. |
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(2) |
Purchases. |
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(2) |
Ankauf. |
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The Issuer may at any time purchase Notes in the open market or otherwise and at any price. Notes purchased by the Issuer may, at the option of the Issuer, be held, resold or surrendered to the Fiscal Agent for cancellation. If purchases are made by tender, tenders for such Notes must be made available to all Holders of such Notes alike. |
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Die Emittentin ist berechtigt, jederzeit Schuldverschreibungen im Markt oder anderweitig zu jedem beliebigen Preis zu kaufen. Die von der Emittentin erworbenen Schuldverschreibungen können nach Wahl der Emittentin von ihr gehalten, weiterverkauft oder bei der Emissionsstelle zwecks Entwertung eingereicht werden. Sofern diese Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot allen Gläubigern gemacht werden. |
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(3) |
Cancellation. |
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(3) |
Entwertung. |
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All Notes redeemed in full shall be cancelled forthwith and may not be reissued or resold. |
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Sämtliche vollständig zurückgezahlten Schuldverschreibungen sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden. |
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§ 12 |
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§ 12 |
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(NOTICES) |
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(MITTEILUNGEN) |
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(1) |
Publication. |
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(1) |
Bekanntmachung. |
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All notices concerning the Notes will be made by means of electronic publication on the internet website of the Luxembourg Stock Exchange (www.bourse.lu). Any notice will be deemed to have been validly given on the third day following the date of such publication (or, if published more than once, on the third day following the date of the first such publication). |
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Alle die Schuldverschreibungen betreffenden Mitteilungen sind auf der Internetseite der Luxemburger Börse (www.bourse.lu) zu veröffentlichen. Jede derartige Mitteilung gilt mit dem dritten Tag nach dem Tag der Veröffentlichung (oder bei mehreren Veröffentlichungen mit dem dritten Tag nach dem Tag der ersten solchen Veröffentlichung) als wirksam erfolgt. |
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(2) |
Notification to Clearing System. |
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(2) |
Mitteilungen an das Clearingsystem. |
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So long as any Notes are listed on the official list of the Luxembourg Stock Exchange, subparagraph (1) shall apply. If the Rules of the Luxembourg Stock Exchange otherwise so permit, the Issuer may deliver the relevant notice to the Clearing System for communication by the Clearing System to the Holders |
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Solange Schuldverschreibungen im amtlichen Kursblatt (official list) der Luxemburger Börse notiert sind, sind alle die Schuldverschreibungen betreffenden Mitteilungen gemäß Absatz 1 bekanntzumachen. Soweit die Regeln der Luxemburger Börse dies zulassen, kann die Emittentin eine Veröffentlichung |
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in lieu of publication as set forth in subparagraph (1) above; any such notice shall be deemed to have been given on the seventh day after the day on which the said notice was given to the Clearing System. |
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nach Absatz 1 durch eine Mitteilung an das Clearing System zur Weiterleitung an die Gläubiger ersetzen; jede derartige Mitteilung gilt am siebten Tag nach dem Tag der Mitteilung an das Clearing System als den Gläubigern mitgeteilt. |
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§ 13 |
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§ 13 |
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AMENDMENTS TO THE TERMS AND CONDITIONS |
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ÄNDERUNG DER EMISSIONSBEDINGUNGEN |
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BY RESOLUTION OF THE HOLDERS, HOLDERS |
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DURCH BESCHLUSS DER GLÄUBIGER; |
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REPRESENTATIVE, AMENDMENT OF THE |
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GEMEINSAMER VERTRETER, ÄNDERUNG DER |
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GUARANTEE |
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GARANTIE |
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(1) |
Resolutions of Holders. |
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(1) |
Beschlüsse durch die Gläubiger. |
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The Holders may with consent of the Issuer (if required) by a majority resolution pursuant to section 5 et seqq. of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen) (the SchVG), as amended from time to time, agree to amendments of the Terms and Conditions or resolve any other matters provided for by the SchVG. In particular, the Holders may consent to amendments which materially change the substance of the Terms and Conditions, including such measures as provided for under section 5 paragraph 3 of the SchVG by resolutions passed by such majority of the votes of the Holders as stated under § 13(2) below. A duly passed majority resolution shall be binding upon all Holders. |
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Die Gläubiger können mit Zustimmung der Emittentin (soweit erforderlich) aufgrund Mehrheitsbeschlusses nach Maßgabe der §§ 5 ff. des Gesetzes über Schuldverschreibungen aus Gesamtemissionen (das SchVG) in seiner jeweils gültigen Fassung die Emissionsbedingungen ändern oder sonstige Maßnahmen gemäß dem SchVG beschließen. Die Gläubiger können insbesondere einer Änderung wesentlicher Inhalte der Emissionsbedingungen, einschließlich der in § 5 Abs. 3 SchVG vorgesehenen Maßnahmen durch Beschlüsse mit den in dem nachstehenden § 13(2) genannten Mehrheiten zustimmen. Ein ordnungsgemäß gefasster Mehrheitsbeschluss ist für alle Gläubiger verbindlich. |
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(2) |
Majority. |
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(2) |
Mehrheit. |
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Except as provided by the following sentence and provided that the quorum requirements are being met, the Holders may pass resolutions by simple majority of the voting rights participating in the vote. Resolutions which materially change the substance of the Terms and Conditions, in particular in the cases of section 5 paragraph 3 numbers 1 through 9 SchVG, or relating to material other matters may only be passed by a majority of at least 75% of the voting rights participating in the vote (a Qualified |
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Vorbehaltlich des nachstehenden Satzes und der Erreichung der erforderlichen Beschlussfähigkeit, beschließen die Gläubiger mit der einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte. Beschlüsse, durch welche der wesentliche Inhalt der Emissionsbedingungen, insbesondere in den Fällen des § 5 Abs. 3 Nummern 1 bis 9 SchVG, geändert wird, bedürfen zu ihrer Wirksamkeit einer Mehrheit von mindestens 75% der an der Abstimmung teilnehmenden |
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Majority). |
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Stimmrechte (eine Qualifizierte Mehrheit). |
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(3) |
Passing of resolutions. |
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(3) |
Beschlussfassung. |
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The Holders can pass resolutions in a meeting (Gläubigerversammlung) in accordance with section 5 et seqq. of the SchVG or by means of a vote without a meeting (Abstimmung ohne Versammlung) in accordance with section 18 and section 5 et seqq. of the SchVG. |
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Die Gläubiger können Beschlüsse in einer Gläubigerversammlung gemäß §§ 5 ff. SchVG oder im Wege einer Abstimmung ohne Versammlung gemäß § 18 und § 5 ff. SchVG fassen. |
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(4) |
Meeting. |
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(4) |
Gläubigerversammlung. |
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Attendance at the meeting and exercise of voting rights is subject to the Holders registration. The registration must be received at the address stated in the convening notice no later than the third day preceding the meeting. As part of the registration, Holders must demonstrate their eligibility to participate in the vote in accordance with section 10 paragraph 3 of the SchVG. |
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Die Teilnahme an der Gläubigerversammlung und die Ausübung der Stimmrechte ist von einer vorherigen Anmeldung der Gläubiger abhängig. Die Anmeldung muss unter der in der Bekanntmachung der Einberufung mitgeteilten Adresse spätestens am dritten Tag vor der Gläubigerversammlung zugehen. Mit der Anmeldung müssen die Gläubiger ihre Berechtigung zur Teilnahme an der Abstimmung gemäß § 10 Absatz 3 SchVG nachweisen. |
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(5) |
Vote without a meeting. |
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(5) |
Abstimmung ohne Versammlung. |
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Together with casting their votes Holders must demonstrate their eligibility to participate in the vote in accordance with § 10 paragraph 3 of the SchVG. |
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Zusammen mit der Stimmabgabe müssen die Gläubiger ihre Berechtigung zur Teilnahme an der Abstimmung gemäß § 10 Absatz 3 SchVG nachweisen. |
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(6) |
Second meeting. |
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(6) |
Zweite Versammlung. |
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If it is ascertained that no quorum exists for the meeting pursuant to § 13(4) or the vote without a meeting pursuant to § 13(5), in case of a meeting the chairman (Vorsitzender) may convene a second meeting in accordance with section 15 paragraph 3 sentence 2 of the SchVG or in case of a vote without a meeting the scrutineer (Abstimmungsleiter) may convene a second meeting within the meaning of section 15 paragraph 3 sentence 3 of the SchVG. Attendance at the second meeting and exercise of voting |
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Wird für die Gläubigerversammlung gemäß § 13(4) oder die Abstimmung ohne Versammlung gemäß § 13(5) die mangelnde Beschlussfähigkeit festgestellt, kann im Fall der Gläubigerversammlung der Vorsitzende eine zweite Versammlung im Sinne von § 15 Abs. 3 Satz 2 SchVG und im Fall der Abstimmung ohne Versammlung der Abstimmungsleiter eine zweite Versammlung im Sinne von § 15 Abs. 3 Satz 3 SchVG einberufen. Die Teilnahme an der zweiten Versammlung und die Ausübung der Stimmrechte |
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rights is subject to the Holders registration. The provisions set out in § 13(4) sentence 3 shall apply mutatis mutandis to the Holders registration for a second meeting. |
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sind von einer vorherigen Anmeldung der Gläubiger abhängig. Für die Anmeldung der Gläubiger zu einer zweiten Versammlung gilt § 13(4) Satz 3 entsprechend. |
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(7) |
Holders representative. |
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(7) |
Gemeinsamer Vertreter. |
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The Holders may by majority resolution provide for the appointment or dismissal of a joint representative (the Holders Representative), the duties and responsibilities and the powers of such Holders Representative, the transfer of the rights of the Holders to the Holders Representative and a limitation of liability of the Holders Representative. Appointment of a Holders Representative may only be passed by a Qualified Majority if such Holders Representative is to be authorized to consent, in accordance with § 13(2) hereof, to a material change in the substance of the Terms and Conditions. |
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Die Gläubiger können durch Mehrheitsbeschluss einen gemeinsamen Vertreter (der Gemeinsame Vertreter) bestellen oder abberufen, die Pflichten, Verantwortlichkeiten und Rechte eines solchen Gemeinsamen Vertreters festlegen, die Übertragung der Rechte der Gläubiger auf den Gemeinsamen Vertreter sowie die Haftungsbegrenzung des Gemeinsamen Vertreters bestimmen. Die Bestellung eines Gemeinsamen Vertreters bedarf einer Qualifizierten Mehrheit, wenn der Gemeinsame Vertreter in Übereinstimmung mit § 13(2) autorisiert ist, einer wesentlichen Änderung des Charakters der Emissionsbedingungen zuzustimmen. |
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(8) |
Publication. |
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(8) |
Veröffentlichung. |
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Any notices concerning this § 13 shall be made exclusively pursuant to the provisions of the SchVG. |
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Alle Bekanntmachungen diesen § 13 betreffend erfolgen ausschließlich gemäß den Bestimmungen des SchVG. |
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(9) |
Amendment of the Guarantee. |
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(9) |
Änderung der Garantie. |
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The provisions set out above applicable to the amendment of the Terms and Conditions of the Notes shall apply mutatis mutandis to the Guarantee. |
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Die oben aufgeführten auf die Änderung der Emissionsbedingungen der Schuldverschreibungen anwendbaren Bestimmungen geltenentsprechend für die Bestimmungen der Garantie. |
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§ 14 |
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§ 14 |
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(APPLICABLE LAW, PLACE OF JURISDICTION AND ENFORCEMENT) |
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(ANWENDBARES RECHT, GERICHTSSTAND UND GERICHTLICHE GELTENDMACHUNG) |
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(1) |
Applicable Law. |
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(1) |
Anwendbares Recht. |
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The Notes, as to form and content, and all rights and obligations of the Holders and the Issuer, shall be governed in every respect by German law. |
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Form und Inhalt der Schuldverschreibungen sowie die Rechte und Pflichten der Gläubiger und der Emittentin bestimmen sich in jeder Hinsicht nach deutschem Recht. |
(2) |
Submission to Jurisdiction. |
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(2) |
Gerichtsstand. |
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Subject to any mandatory jurisdiction for specific proceedings under the SchVG, the District Court (Landgericht) in Frankfurt am Main shall have non-exclusive jurisdiction for any action or other legal proceedings (Proceedings) arising out of or in connection with the Notes. |
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Vorbehaltlich eines zwingenden Gerichtsstandes für besondere Rechtsstreitigkeiten im Zusammenhang mit dem SchVG, ist das Landgericht Frankfurt am Main nicht ausschließlich zuständig für sämtliche im Zusammenhang mit den Schuldverschreibungen entstehenden Klagen oder sonstige Verfahren (Rechtsstreitigkeiten). |
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(3) |
Enforcement. |
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(3) |
Gerichtliche Geltendmachung. |
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Any Holder of Notes may in any proceedings against the Issuer or the Guarantor or to which such Holder and the Issuer or the Guarantor are parties, protect and enforce in his own name his rights arising under such Notes on the basis of (i) a statement issued by the Custodian with whom such Holder maintains a securities account in respect of the Notes (a) stating the full name and address of the Holder, (b) specifying the aggregate principal amount of Notes credited to such securities account on the date of such statement and (c) confirming that the Custodian has given written notice to the Clearing System containing the information pursuant to (a) and (b) which has been confirmed by the Clearing System; (ii) a copy of the Note in global form certified as being a true copy by a duly authorized officer of the Clearing System or a depositary of the Clearing System, without the need for production in such proceedings of the actual records or the global note representing the Notes or (iii) any other means of proof permitted in legal proceedings in the country of enforcement. For purposes of the foregoing, Custodian means any bank or other financial institution of recognized standing authorized to engage in securities custody business with which the Holder maintains a securities account in respect of the Notes and which maintains an account with the Clearing System, and includes the Clearing System. Each Holder may, without prejudice to the foregoing, protect and enforce his rights under |
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Jeder Gläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Emittentin oder die Garantiegeberin oder in jedem Rechtsstreit, in dem der Gläubiger und die Emittentin oder die Garantiegeberin Partei sind, seine Rechte aus diesen Schuldverschreibungen im eigenen Namen auf der folgenden Grundlage zu schützen oder geltend zu machen: (i) er bringt eine Bescheinigung der Depotbank bei, bei der er für die Schuldverschreibungen ein Wertpapierdepot unterhält, welche (a) den vollständigen Namen und die vollständige Adresse des Gläubigers enthält, (b) den Gesamtnennbetrag der Schuldverschreibungen bezeichnet, die unter dem Datum der Bestätigung auf dem Wertpapierdepot verbucht sind und (c) bestätigt, dass die Depotbank gegenüber dem Clearingsystem eine schriftliche Erklärung abgegeben hat, die die vorstehend unter (a) und (b) bezeichneten Informationen enthält und einen Bestätigungsvermerk des Clearingsystems trägt; (ii) er legt eine Kopie der die betreffenden Schuldverschreibungen verbriefenden Globalurkunde vor, deren Übereinstimmung mit dem Original eine vertretungsberechtigte Person des Clearingsystems oder des Verwahrers des Clearingsystems bestätigt hat, ohne dass eine Vorlage der Originalbelege oder der die Schuldverschreibungen verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre oder (iii) auf jede andere Weise, die im Lande der Geltendmachung prozessual zulässig ist. Für die Zwecke |
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these Notes also in any other way which is admitted in the country of the Proceedings. |
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des Vorstehenden bezeichnet Depotbank jede Bank oder ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Gläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält und ein Konto beim Clearingsystem unterhält, einschließlich des Clearingsystems. Jeder Gläubiger kann unbeschadet des Vorstehenden seine Rechte aus diesen Schuldverschreibungen auch auf jede andere Weise schützen und durchsetzen, die im Land des Verfahrens zulässig ist. |
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§ 15 |
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§ 15 |
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(LANGUAGE) |
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(SPRACHE) |
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These Terms and Conditions are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only. |
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Diese Emissionsbedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich. |
Part II.: ADDITIONAL INFORMATION
Teil II ZUSÄTZLICHE INFORMATIONEN
A. Essential information |
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Grundlegende Angaben |
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Interests of Natural and Legal Persons involved in the Issue/Offer |
None |
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Interessen von Seiten natürlicher und juristischer Personen, die an |
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der Emission/dem Angebot beteiligt sind |
Keine |
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Reasons for the offer to the public or for the admission to trading |
General corporate purposes including |
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and use of proceeds |
refinancing of existing financial liabilities |
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Gründe für das öffentliche Angebot oder die Zulassung zum Handel und Verwendung der Erlöse |
Allgemeine Unternehmenszwecke einschließlich der Refinanzierung bestehender |
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Finanzverbindlichkeiten |
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Estimated net proceeds |
EUR 496,025,000 |
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Geschätzter Nettobetrag der Erträge |
EUR 496.025.000 |
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Estimated total expenses of the issue |
EUR 50,000 |
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Geschätzte Gesamtkosten der Emission |
EUR 50.000 |
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Eurosystem eligibility |
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EZB-Fähigkeit |
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x |
Intended to be held in a manner which would |
Yes |
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allow Eurosystem eligibility |
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Soll in EZB-fähiger Weise gehalten werden |
Ja |
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Yes. Note that the designation Yes in the case of a NGN simply means that the Notes are intended upon issue to be deposited with one of the ICSDs as common safekeeper, and does not necessarily mean that the Notes will be recognized as eligible collateral for Eurosystem monetary policy and intraday credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon the ECB being satisfied that Eurosystem eligibility criteria have been met. |
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Ja. Es ist zu beachten, dass die Bestimmung Ja im Falleiner NGN lediglich bedeutet, dass die Schuldverschreibungen nach Begebung bei einer der ICSDs als gemeinsamer Verwahrer hinterlegt werden sollen, und es bedeutet nicht notwendigerweise, dass die Schuldverschreibungen als geeignete Sicherheit im Sinne der Währungspolitik des Eurosystems und der taggleichen Überziehungen (intraday credit operations) des Eurosystem entweder nach Begebung oder zu einem Zeitpunkt während ihrer Existenz anerkannt werden. Eine solche Anerkennung wird vom Urteil der EZB abhängen, dass die Eurosystemfähigkeitskriterien erfüllt werden. |
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and provisions applying to such representation. Indication of the website where the public may have free access to the contracts relation to these forms of representation |
Not applicable |
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Vertretung der Inhaber von Nichtdividendenwerten unter Angabe der die Anleger vertretenden Organisation und der für diese Vertretung geltenden Bestimmungen. Angabe der Website, auf der die Anleger die Verträge, die diese Repräsentationsformen regeln, kostenlos einsehen können |
Nicht anwendbar |
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Resolutions, authorizations and approvals by virtue of which the Notes will be created |
The issue of the Notes has been authorized by a resolution of the management board of the Issuers general partner dated March 25, 2020 and by a resolution of the supervisory board of the Issuers general partner dated March 26, 2020. |
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Beschlüsse, Ermächtigungen und Genehmigungen, welche die Grundlage für die Schaffung der Schuldverschreibungen bilden |
Die Begebung der Schuldverschreibungen wurde ordnungsgemäß genehmigt durch Vorstandsbeschluss der Komplementärin der Emittentin vom 25. März 2020 und Aufsichtsratsbeschluss der Komplementärin der Emittentin vom 26. März 2020. |
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C. |
Terms and conditions of the offer of the Notes to the public |
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Bedingungen und Konditionen des öffentlichen Angebots von Schuldverschreibungen |
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C.1 |
Conditions, offer statistics, expected timetable and action required to apply for the offer |
Not applicable |
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Angebotsstatistiken, erwarteter Zeitplan und erforderliche Maßnahmen für die Antragstellung |
Nicht anwendbar |
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Conditions to which the offer is subject |
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Bedingungen, denen das Angebot unterliegt |
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Time period, including any possible amendments, during |
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which the offer will be open |
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Frist - einschließlich etwaiger Änderungen während der das |
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Angebot gültig ist |
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Description of the application process |
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Beschreibung des Prozesses für die Umsetzung des Angebots |
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A description of the possibility to reduce subscriptions and the |
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manner for refunding excess amount paid by applicants |
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Beschreibung der Möglichkeit zur Reduzierung der Zeichnungen und der Art und Weise der Erstattung des zu viel gezahlten Betrags an die Zeichner |
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Details of the minimum and/or maximum amount |
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of application, (whether in number of Notes or aggregate |
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Kosten/Steuern, die dem Zeichner/Käufer in Rechnung gestellt |
Nicht anwendbar |
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C.4 |
Placing and underwriting |
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Platzierung und Emission |
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Name and address of the coordinator(s) of the global offer and of single parts of the offer and, to the extent known to the Issuer or the offeror, or the placers in the various countries where the offer takes place |
Not applicable |
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Name und Anschrift des Koordinators/der Koordinatoren des globalen Angebots oder einzelner Teile des Angebots und sofern der Emittentin oder dem Bieter bekannt Angaben zu den Platzierern in den einzelnen Ländern des Angebots |
Nicht anwendbar |
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Method of distribution |
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Vertriebsmethode |
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o |
Non-syndicated |
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Nicht syndiziert |
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x |
Syndicated |
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Syndiziert |
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Subscription Agreement |
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Übernahmevertrag |
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Date of Subscription Agreement |
May 27, 2020 |
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Datum des Subscription Agreements |
27. Mai 2020 |
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Material Features of the Subscription Agreement: |
Under the Subscription Agreement, the Issuer agrees to issue the Notes and each Dealer agrees to purchase the Notes; the Issuer and each Dealer agree inter alia on the aggregate principal amount of the issue, the principal amount of the Dealers commitments, the Issue Price, the Issue Date and the commissions. |
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Hauptmerkmale des Übernahmevertrages: |
Unter dem Übernahmevertrag vereinbart die Emittentin, die Schuldverschreibungen zu begeben und jeder Platzeur stimmt zu, die Schuldverschreibungen zu erwerben. Die Emittentin und jeder Platzeur vereinbaren im Übernahmevertrag unter anderem den Gesamtnennbetrag der Emission,die gemäß der Übernahmeverpflichtung auf die Platzeure entfallenden Nennbeträge, den Ausgabepreis, den Valutierungstag und die Provisionen. |
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Management Details including form of commitment |
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Einzelheiten bezüglich des Bankenkonsortiums einschließlich der |
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Art der Übernahme |
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Specify Management Group or Dealer (names and addresses) |
Active Bookrunners |
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Bankenkonsortium oder Platzeur angeben (Namen und Anschriften) |
Commerzbank Aktiengesellschaft |
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Kaiserstrasse 16 (Kaiserplatz) |
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60311 Frankfurt am Main |
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Germany |
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Deutsche Bank Aktiengesellschaft |
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Mainzer Landstraße 11-17 |
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60329 Frankfurt am Main |
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Germany |
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Mizuho Securities Europe GmbH |
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Taunustor 1 |
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60311 Frankfurt am Main |
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Germany |
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Société Générale |
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Tours Société Générale |
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17 Cours Valmy |
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92987 Paris La Défense Cedex |
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France |
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Passive Bookrunners |
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Banco Santander, S.A. |
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Avenida de Cantabria s/n |
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28660 Boadilla del Monte Madrid |
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Spain |
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UniCredit Bank AG |
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Arabellastrasse 12 |
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81925 Munich |
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Germany |
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Co-Lead Managers |
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Landesbank Baden-Württemberg |
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Am Hauptbahnhof 2 |
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70173 Stuttgart |
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Germany |
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Landesbank Hessen-Thüringen |
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Girozentrale |
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Main Tower |
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Neue Mainzer Strasse 52-58 |
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60311 Frankfurt am Main |
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Germany |
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x |
Firm commitment |
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Feste Zusage |
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o |
no firm commitment / best efforts arrangements |
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Keine feste Zusage / zu den bestmöglichen Bedingungen |
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Commissions |
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|||||
Provisionen |
|
|||||
Management/Underwriting Commission (specify) |
0.20% of the aggregate principal amount |
|||||
Management- und Übernahmeprovision (angeben) |
0,20% des Gesamtnennbetrags |
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|
|||||
Selling Concession (specify) |
Not applicable |
|||||
Verkaufsprovision (angeben) |
Nicht anwendbar |
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|||||
Listing Commission (specify) |
Not applicable |
|||||
Börsenzulassungsprovision (angeben) |
Nicht anwendbar |
|||||
|
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|||||
Prohibition of Sales to EEA and UK Retail Investors |
Not applicable |
|||||
Verbot des Verkaufs an EWR- und UK-Privatanleger |
Nicht anwendbar |
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|
|||||
Stabilising Dealer/Manager |
Deutsche Bank Aktiengesellschaft |
|||||
Kursstabilisierender Dealer/Manager |
Mainzer Landstraße 11-17 |
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60329 Frankfurt am Main |
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Germany |
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C.5 |
Public Offer Jurisdictions |
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Jurisdiktionen für öffentliches Angebot |
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||||
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Public Offer Jurisdiction(s) |
Not applicable |
|||||
Jurisdiktionen, in denen ein öffentliches |
Nicht anwendbar |
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Angebot stattfindet |
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|||||
|
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||||
D. |
Listing(s) and admission to trading |
Yes |
||||
|
Börsenzulassung(en) und Notierungsaufnahme |
Ja |
||||
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|||||
|
x |
Regulated Market of the Luxembourg Stock Exchange |
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|
Regulierter Markt der Luxemburger Wertpapierbörse |
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o |
Other |
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Sonstige |
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Date of admission |
May 29, 2020 |
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Termin der Zulassung |
29. Mai 2020 |
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|
|
|||||
Estimate of the total expenses related to admission to trading |
Not applicable |
|||||
Geschätzte Gesamtkosten für die Zulassung zum Handel |
Nicht anwendbar |
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|
|
|||||
All regulated markets or third-country markets, SME Growth Market or MTFs on which, to the knowledge of the Issuer, notes of the same class of the notes to be offered to the public or admitted to trading are already admitted to trading |
Not applicable |
|||||
Angabe sämtlicher regulierter Märkte oder Märkte in Drittstaaten, KMU-Wachstumsmärkte oder MTFs, auf denen nach Kenntnis der Emittentin Schuldverschreibungen der gleichen Wertpapierkategorie, die öffentlich angeboten oder zum Handel zugelassen werden |
Nicht anwendbar |
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|
such update. |
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Fitch Ratings Limited hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Standard & Poors Credit Market Services Europe Limited (Zweigniederlassung Deutschland) hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Moodys Deutschland GmbH hat ihren Sitz in der Europäischen Union und ist gemäß Verordnung (EG) Nr. 1060/2009 des Europäischen Parlaments und des Rates vom 16. September 2009 über Ratingagenturen (in der geänderten Fassung) registriert. Die Europäische Wertpapier und Marktaufsichtsbehörde (ESMA) veröffentlicht auf ihrer Webseite (http://www.esma.europa.eu/page/List-registered-and-certified-CRAs) ein Verzeichnis der nach der Ratingverordnung registrierten Ratingagenturen. Dieses Verzeichnis wird innerhalb von fünf Werktagen nach Annahme eines Beschlusses gemäß Artikel 16, 17 oder 20 der Ratingverordnung aktualisiert. Die Europäische Kommission veröffentlicht das aktualisierte Verzeichnis im Amtsblatt der Europä-ischen Union innerhalb von 30 Tagen nach der Aktualisierung. |
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F. |
Information to be provided regarding the consent by the Issuer or person responsible for drawing up the Prospectus and the Final Terms |
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|
Zur Verfügung zu stellende Informationen über die Zustimmung der Emittentin oder der für die Erstellung des Prospekts und der Endgültigen Bedingungen zuständigen Person |
|
The consent to the use of the Prospectus and these Final Terms for the subsequent resale or final placement of Notes by all financial intermediaries is given by the Issuer in relation to Luxembourg and Germany.
The subsequent resale or final placement of Notes by financial intermediaries can be made during the offer period. The offer period commences on May 27, 2020 and ends on May 29, 2020.
Die Zustimmung zu der Verwendung des Prospekts und dieser Endgültigen Bedingungen zu der späteren Weiterveräußerung und der endgültigen Platzierung der Schuldverschreibungen durch alle Finanzintermediäre wird von der Emittentin in Bezug auf Luxemburg und Deutschland erteilt.
Die spätere Weiterveräußerung und endgültige Platzierung der Wertpapiere durch Finanzintermediäre kann während der Angebotsfrist erfolgen. Die Angebotsfrist beginnt am 27. Mai 2020 und endet am 29. Mai 2020.
Third Party Information
Informationen von Seiten Dritter
With respect to any information included herein and specified to be sourced from a third party (i) the Issuer confirms that any such information has been accurately reproduced and as far as the Issuer is aware and is able to ascertain from information available to it from such third party, no facts have been omitted which would render the reproduced information inaccurate or misleading and (ii) the Issuer has not independently verified any such information and accepts no responsibility for the accuracy thereof.
Hinsichtlich der hierin enthaltenen und als solche gekennzeichneten Informationen von Seiten Dritter gilt Folgendes: (i) Die Emittentin bestätigt, dass diese Informationen zutreffend wiedergegeben worden sind und - soweit es der Emittentin bekannt ist und sie aus den von diesen Dritten zur Verfügung gestellten Informationen ableiten konnte - wurden keine Fakten unterschlagen, die die wiedergegebenen Informationen unzutreffend oder irreführend gestalten würden; (ii) die Emittentin hat diese Informationen nicht selbständig überprüft und übernimmt keine Verantwortung für ihre Richtigkeit.
[Signature Page follows]
[Unterschriftsseite folgt]
Fresenius Medical Care AG & Co. KGaA represented by Fresenius Medical Care Management AG, its general partner
Fresenius Medical Care AG & Co. KGaA vertreten durch Fresenius Medical Care Management AG, ihren persönlich haftenden Gesellschafter
/s/ Rice Powell |
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Rice Powell |
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Member of the Management Board |
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Helen Giza |
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Member of the Management Board |
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Fresenius Medical Care AG & Co. KGaA represented by Fresenius Medical Care Management AG, its general partner
Fresenius Medical Care AG & Co. KGaA vertreten durch Fresenius Medical Care Management AG, ihren persönlich haftenden Gesellschafter
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Rice Powell |
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Member of the Management Board |
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/s/ Helen Giza |
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Helen Giza |
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Member of the Management Board |
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Annex
Summary for the Individual Issue
SECTION A: INTRODUCTION CONTAINING WARNINGS
This summary relates to the tranche EUR 500,000,000 1.000 per cent. Notes due May 29, 2026 with the ISIN XS2178769076 (the Notes), issued by Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Straße 1, 61352 Bad Homburg vor der Höhe, Germany (tel.: +49-6172-609-0; website: www.freseniusmedicalcare.com; LEI: 549300CP8NY40UP89Q40) (the Issuer) under the Issuers EUR 10,000,000,000 Debt Issuance Program (the Program).
The Commission de Surveillance du Secteur Financier (CSSF), 283, route dArlon L-1150 Luxembourg (tel.: +352 26 25 1 - 1; fax: +352 26 25 1 - 2601; e-mail: direction@cssf.lu) has approved the base prospectus for the Program (the Base Prospectus) as the competent authority under Regulation (EU) 2017/1129 on May 19, 2020.
This Summary has been prepared in accordance with Article 7 of Regulation (EU) 2017/1129 and should be read as an introduction to the Base Prospectus and the applicable Final Terms. Any decision to invest in the Notes should be based on consideration of the Base Prospectus as a whole, including any documents incorporated by reference therein, and the applicable Final Terms by the investor. An investor in the Notes could lose all or part of the invested capital. Where a claim relating to the information contained in the Base Prospectus or the applicable Final Terms is brought before a court, the plaintiff investor might, under national law, have to bear the costs of translating the Base Prospectus and the applicable Final Terms, before the legal proceedings are initiated. Civil liability attaches only to the Issuer and the Guarantor which have tabled the Summary including any translation thereof, but only if the Summary is misleading, inaccurate or inconsistent, when read together with the Base Prospectus and the applicable Final Terms, or where it does not provide, when read together with the Base Prospectus and the applicable Final Terms, key information in order to aid investors when considering whether to invest in such Notes.
SECTION B: KEY INFORMATION ON THE ISSUER
B.1 Who is the issuer of the securities?
B.1.1 Domicile, legal form, LEI, jurisdiction of incorporation and country of operation
The Issuer is a partnership limited by shares (Kommanditgesellschaft auf Aktien) with a German stock corporation (Aktiengesellschaft) as a general partner and its registered seat (Sitz) at Hof an der Saale, Germany, incorporated under and governed by the laws of Germany. The LEI of the Issuer is 549300CP8NY40UP89Q40.
B.1.2 Principal activities
The Issuers principal activity is to act as holding company for its subsidiaries, which provide dialysis care and related services to persons who suffer from end-stage renal diseases as well as other health care services, and which develop and manufacture a wide variety of health care products, which include both dialysis and non-dialysis products.
B.1.3 Major Shareholders
As of May 11, 2020, the Issuers share capital consisted of 304,492,501 ordinary shares. Fresenius SE & Co. KGaA (Fresenius SE) owned 32.2% of the Issuers ordinary shares on May 11, 2020. Fresenius SE is also the owner of 100% of the outstanding share capital of the Issuers general partner and has sole power to elect the supervisory board of the Issuers general partner. The Else Kröner-Fresenius-Stiftung is the sole shareholder of Fresenius Management SE, the general partner of Fresenius SE, and has sole power to elect the supervisory board of Fresenius Management SE. In addition, the Else Kröner-Fresenius-Stiftung owned 26.6% of the share capital of Fresenius SE on December 31, 2019.
B.1.4 Key managing directors
The Issuers sole general partner is Fresenius Medical Care Management AG (the General Partner). The management board of the General Partner consists of Rice Powell, Helen Giza, William Valle, Olaf Schermeier, Kent Wanzek, Harry de Wit, Katarzyna Mazur-Hofsäß and Franklin W. Maddux.
B.1.5 Identity of the statutory auditors
Until December 31, 2019, KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Germany, was the auditor of the consolidated financial statements of the Issuer for the fiscal years ended December 31, 2019 and 2018.
B.2 What is the key financial information regarding the Issuer?
The following selected financial data are derived from the consolidated financial statements of the Issuer prepared in accordance with IFRS as of and for the three months ended March 31, 2020 and as of and for each of the fiscal years ended December 31, 2019 and 2018. KPMG AG Wirtschaftsprüfungsgesellschaft audited the consolidated financial statements for each of the fiscal years ended December 31, 2019 and 2018. You should read this information together with our consolidated financial statements and the notes to those statements incorporated by reference in the Prospectus.
Selected Consolidated Statements of Income Data
|
|
For the three months ended |
|
For the fiscal year ended |
|
||||
|
|
March 31, |
|
December 31, |
|
||||
In millions, except share and per share |
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
amounts |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(audited) |
|
Revenue |
|
4,488 |
|
4,133 |
|
17,477 |
|
16,547 |
|
Gross profit |
|
1,411 |
|
1,265 |
|
5,396 |
|
5,155 |
|
Operating income |
|
555 |
|
537 |
|
2,270 |
|
3,038 |
|
Net income attributable to shareholders of the Issuer |
|
283 |
|
271 |
|
1,200 |
|
1,982 |
|
Basic earnings per share |
|
0.95 |
|
0.88 |
|
3.96 |
|
6.47 |
|
Fully diluted earnings per share |
|
0.95 |
|
0.88 |
|
3.96 |
|
6.45 |
|
Selected Consolidated Balance Sheet Data
|
|
As of March 31, |
|
As of December 31, |
|
||
|
|
|
|
2019 |
|
2018 |
|
|
|
2020 |
|
(audited, unless |
|
(audited, unless |
|
In millions |
|
(unaudited) |
|
stated otherwise) |
|
stated otherwise) |
|
Total assets |
|
34,072 |
|
32,935 |
|
26,242 |
|
Current liabilities |
|
8,602 |
|
7,007 |
|
6,268 |
|
Total liabilities |
|
20,802 |
|
19,707 |
|
13,340 |
|
Net debt (unaudited)(1) |
|
13,172 |
|
12,774 |
|
5,400 |
|
Total equity |
|
13,270 |
|
13,227 |
|
12,902 |
|
(1) Net debt, a Non-GAAP Measure, is defined as the sum of our debt and lease liabilities less our cash and cash equivalents. Debt and lease liabilities includes the following balance sheet line items: short-term debt, short-term debt from related parties, current portion of long-term debt, current portion of long term lease liabilities, current portion of long term lease liabilities from related parties, long-term debt, less current portion, long-term lease liabilities, less current portion and long-term lease liabilities from related parties, less
current portion as presented in the consolidated balance sheets of the Issuers consolidated financial statements as of and for the fiscal years ended December 31, 2019 and 2018 and the Issuers unaudited consolidated financial statements as of and for the three months ended March 31, 2020. IFRS 16 Implementation includes lease liabilities and lease liabilities from related parties (EUR 4,705 million), other financial liabilities resulting from changes in the accounting treatment for sale-leaseback transactions (EUR 110 million) as well as the remaining balance of liabilities from capital leases in accordance with IAS 17 at December 31, 2019, which are included in lease liabilities, but have already been included in debt as of December 31, 2018 (EUR 18 million).
Selected Consolidated Statements of Cash Flow Data
|
|
For the three months ended |
|
For the fiscal year ended |
|
||||
|
|
March 31, |
|
December 31, |
|
||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In millions |
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(audited) |
|
Net cash provided by (used in) operating activities |
|
584 |
|
76 |
|
2,567 |
|
2,062 |
|
Net cash provided by (used in) investing activities |
|
(312 |
) |
(2,016 |
) |
(3,286 |
) |
(245 |
) |
Net cash provided by (used in) financing activities |
|
121 |
|
722 |
|
(467 |
) |
(682 |
) |
Cash and cash equivalents at end of the period |
|
1,405 |
|
959 |
|
1,008 |
|
2,146 |
|
B.3 What are the key risks that are specific to the Issuer?
Risks relating to legal and regulatory matters
· We operate in a highly regulated industry such that the potential for legislative reform provides uncertainty and potential threats to our operating models and results.
· Changes in reimbursement and/or governmental regulations for health care could materially decrease our revenues and operating profit.
Risks relating to internal control and governance
· We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws.
· We have identified material weaknesses in our internal control over financial reporting that could, if not remediated, adversely affect our ability to accurately report our financial condition and results of operations.
Risks relating to our business activities and industry
· We are subject to risks associated with public health crises and epidemics/pandemics, such as the global spread of the SARS-CoV-2 pandemic which may result in increased costs and restrictions on our business activities and the business activities of our suppliers and our customers, resulting in a material adverse effect on our business, results of operations and financial condition.
· If physicians and other referral sources cease referring patients to our health care service businesses and facilities or cease purchasing or prescribing our products, our revenues would decrease.
Risks relating to taxation and accounting
· There are significant risks associated with estimating the amount of health care service revenues that we recognize that could impact the timing of our recognition of revenues or have a significant impact on our operating results and financial condition.
Risks relating to our financial condition and corporate structure
· Our indebtedness imposes restrictions. If in the case of a breach of such restrictions the indebtedness under the Notes or certain other financing arrangements were to be accelerated, there can be no assurance that our assets would be sufficient to repay in full that indebtedness and the other indebtedness of the Issuer.
SECTION C: KEY INFORMATION ON THE SECURITIES
C.1 What are the main features of the Securities?
C.1.1 Type, class and ISIN
The Notes are fixed rate notes. They are issued as Series number 5, Tranche number 1, ISIN XS2178769076.
C.1.2 Currency, denomination, par value, number of securities issued and duration
The Notes are issued in euro. The specified denomination per Note is EUR 1,000. The number of Notes is 500,000. The term of the Notes is 6 years.
C.1.3. Rights attached to the Securities
Each holder of a Note (each a Noteholder) has the right vis-à-vis the Issuer to claim payment of interest and nominal when such payments are due in accordance with the terms and conditions of the Notes (the Terms and Conditions). Unless previously redeemed, or purchased and cancelled, each Note will be redeemed at its principal amount on the Maturity Date.
Guarantee
The Notes benefit from an unconditional and irrevocable guarantee for the due payment of interest and principal and additional amounts, if any, granted by the Guarantor. The Guarantee granted by the Guarantor includes a release mechanism in certain circumstances described in the Guarantee.
Negative Pledge
The Notes contain a limited negative pledge provision.
Events of Default
The Notes provide for events of default entitling Noteholders to demand immediate redemption of the Notes.
Cross Default
The Notes provide for cross default provisions.
Change of Control
The Notes provide for the right of Noteholders to require the Issuer to repurchase the Notes upon a change of control.
Limitation of rights
Early Redemption
The Notes may be called for redemption and redeemed prior to their stated maturity for taxation reasons, or else at the option of the Issuer. The Notes may also be called for redemption and be redeemed prior to their stated maturity at the option of the Issuer for reason of minimal outstanding principal amount.
Resolutions of Noteholders: In accordance with the German Act on Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, SchVG), the Notes contain provisions pursuant to which Noteholders may agree by resolution to amend the Terms and Conditions (with the consent of the Issuer) and to decide upon certain other matters regarding the Notes. Resolutions of Noteholders properly adopted, either in a meeting of Noteholders or by vote taken without a meeting in accordance with the Terms and Conditions, are binding upon all Noteholders. Resolutions providing for material amendments to the Terms and Conditions require
a majority of not less than 75% of the votes cast. Resolutions regarding other amendments are passed by a simple majority of the votes cast.
C.1.4 Rank of the Securities in the Issuers capital structure upon insolvency
The Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, unless such obligations are accorded priority under mandatory provisions of statutory law.
C.1.5 Restrictions on free transferability of the securities
Not applicable. The Notes are freely transferable.
C.1.6 Payout policy (interest)
The Notes bear interest on their principal amount from May 29, 2020 (inclusive) at a fixed rate of 1.000 percent per annum payable in arrears on each Interest Payment Date.
Interest Payment Date shall mean May 29 each year with the first Interest Payment Date being May 29, 2021.
Maturity Date
Unless previously redeemed in whole or in part or purchased and cancelled, the Notes shall be redeemed on May 29, 2026 at its principal amount.
Yield
The yield equals 1.103 percent per annum.
C.2 Where will the Securities be traded?
Application has been made to admit the Notes to trading on the regulated market of the Luxembourg Stock Exchange.
C.3 Is there a guarantee attachted to the securities?
C.3.1 Nature and scope of the Guarantee
The Guarantor unconditionally and irrevocably guarantees the due payment of interest and principal and additional amounts, if any, for the Notes issued by the Issuer.
C.3.2 Description of the Guarantor
The legal name of the Guarantor is Fresenius Medical Care Holdings, Inc. and its LEI is XTHT88D08CLK11B3GJ82. As there is no general federal corporation law in the United States, the Guarantor is organized and existing under the Business Corporation Law of the State of New York. Its executive offices are located at 920 Winter Street, Waltham, Massachusetts, 02451-1457, United States, and its telephone number is +1(781) 699-9000.
C.3.3 Key financial information relating to the Guarantor
The following selected financial data are derived from the consolidated financial statements of the Guarantor prepared in accordance with U.S. GAAP as of and for each of the fiscal years ended December 31, 2019 and 2018. KPMG LLP audited these financial statements. You should read this information together with the Guarantors consolidated financial statements and the notes to those statements incorporated by reference in the Prospectus.
Selected Consolidated Statements of Income Data
|
|
For the fiscal year ended December 31, |
|
||
|
|
2019 |
|
2018 |
|
In US$ millions |
|
(audited) |
|
(audited) |
|
Health Care revenues, net |
|
12,531 |
|
12,592 |
|
Medical supplies revenue |
|
1,124 |
|
961 |
|
Expenses |
|
12,435 |
|
11,269 |
|
Income before income taxes |
|
1,220 |
|
2,283 |
|
Net income |
|
973 |
|
1,841 |
|
Income attributable to non-controlling interests |
|
264 |
|
264 |
|
Net income attributable to Guarantor |
|
709 |
|
1,577 |
|
Selected Consolidated Balance Sheet Data
|
|
As of December 31, |
|
||
|
|
2019 |
|
2018 |
|
|
|
(audited, unless |
|
(audited, unless |
|
In US$ millions |
|
stated otherwise) |
|
stated otherwise) |
|
Total assets |
|
25,578 |
|
20,592 |
|
Total current liabilities |
|
3,379 |
|
3,280 |
|
Total liabilities |
|
14,012 |
|
8,475 |
|
Total equity |
|
10,464 |
|
11,151 |
|
Net debt (unaudited)(1) |
|
10,293 |
|
3,081 |
|
(1) Net debt is a Non-GAAP Measure. We define net debt as the sum of the Guarantors debt and lease liabilities less the Guarantors cash and cash equivalents. The Guarantors debt and lease liabilities include the following balance sheet line items: current borrowings from affiliates, current portion of lease liabilities, short-term borrowings, current portion of longterm debt, long-term debt, noncurrent borrowings from affiliates and long-term lease liabilities as presented in the consolidated balance sheets of the Guarantors consolidated financial statements as of and for the fiscal years ended December 31, 2019 and 2018.
Selected Consolidated Statements of Cash Flow Data
|
|
For the fiscal year ended December 31, |
|
||
|
|
2019 |
|
2018 |
|
In US$ millions |
|
(audited) |
|
(audited) |
|
Net cash provided by (used in) operating activities |
|
1,504 |
|
1,480 |
|
Net cash provided by (used in) investing activities |
|
(3,116 |
) |
922 |
|
Net cash provided by (used in) financing activities |
|
237 |
|
(1,185 |
) |
Cash and cash equivalents at end of the period |
|
467 |
|
1,848 |
|
C.3.4 Most material risk factors pertaining to the Guarantor
· The Guarantor obtains substantially all of its income from its respective subsidiaries, and the holding company structure may limit the Guarantors ability to benefit from the assets of its subsidiaries. In addition,
the Guarantee will be effectively subordinated to the Guarantors debt to the extent such debt is secured by assets that are not also securing the Notes.
C.4 What are the key risks that are specific to the Securities?
Risks relating to each investors circumstances and financial condition
· The Notes may not be a suitable investment for all investors. Each potential investor in the Notes must determine the suitability of that investment in light of its own circumstances.
Risks relating to the nature and ranking of of the Notes
· The Notes are structurally subordinated to the claims of other creditors of non-guarantors within the Group.
· The Notes and the Guarantee will be effectively subordinated to secured debt of the Issuer and the Guarantor to the extent such debt is secured by assets that are not also securing the Notes.
· The Issuer and the Guarantor both rely on distributions from their subsidiaries to meet their payment obligations.
· Although the occurrence of specific change of control events will permit Holders to require redemption or repurchase of the Notes, the Issuer may not be able to redeem or repurchase such Notes.
Risks relating to the Guarantor and the Guarantee
· U.S. federal and state laws allow courts, under specific circumstances, to declare the Guarantee void and to require Noteholders to return payments received from the Guarantor.
SECTION D: KEY INFORMATION ON THE OFFER OF SECURITIES TO THE PUBLIC AND THE ADMISSION TO TRADING ON A REGULATED MARKET
D.1 Under which conditions and timetable can I invest in this security?
Admission to trading: Application has been made to the Luxembourg Stock Exchange for the Notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange.
There will be no public offer of the Notes by the Issuer. The consent to the use of the Prospectus and the Final Terms for the subsequent resale or final placement of Notes by all financial intermediaries is given by the Issuer in relation to Luxembourg and Germany. The subsequent resale or final placement of Notes by financial intermediaries can be made during the offer period which commences on May 27, 2020 and ends on May 29, 2020.
Estimated total expenses of the issue (including expenses charged to the investor by the issuer): EUR 50,000.
D.2 Why has the Base Prospectus been produced?
D.2.1 Reasons for the offer/Use and estimated net amount of proceeds
The net proceeds of the issuance will be applied by the Issuer to meet part of its general corporate purposes, including refinancing of existing fiancial liabilities.
The estimated net proceeds of the issuance amount to EUR 496,025,000.
D.2.2 Subscription agreement
The issue of the Notes is subject to a subscription agreement dated May 27, 2020 on a firm commitment basis.
D.2.3 Material conflicts of interest
None.
German Translation of the Summary for the Individual Issue
Zusammenfassung für die Einzelemission
ABSCHNITT A: EINLEITUNG MIT WARNHINWEISEN
Diese Zusammenfassung bezieht sich auf die Tranche EUR 500.000.000 1,000 % Schuldverschreibungen fällig 29. Mai 2026 mit der ISIN XS2178769076 (die Schuldverschreibungen), ausgegeben durch die Fresenius Medical Care AG & Co. KGaA, Else-Kröner-Straße 1, 61352 Bad Homburg vor der Höhe, Deutschland (tel.: +49-6172-609-0; Website: www.freseniusmedicalcare.com; LEI: 549300CP8NY40UP89Q40) (die Emittentin) aus dem EUR 10,000,000,000 Anleihemissionsprogramm der Emittentin (das Programm).
Die Commission de Surveillance du Secteur Financier (CSSF), 283 Route dArlon, L-1150 Luxembourg (tel. +352 26 25 1 - 1; Fax: +352 26 25 1 2601; E-Mail direction@cssf.lu) hat den Basisprospekt für das Programm (der Basisprospekt) als zuständige Behörde nach der Verordnung (EU) 2017/1129 am 19. Mai 2020 gebilligt.
Diese Zusammenfassung wurde in Übereinstimmung mit Artikel 7 der Verordnung (EU) 2017/1129 erstellt und sollte als Einleitung zu dem Basisprospekt sowie den jeweiligen Endgültigen Bedingungen verstanden werden. Der Anleger sollte sich bei jeder Entscheidung, in die Schuldverschreibungen zu investieren, auf den Basisprospekt als Ganzes, einschließlich aller durch Verweis darin aufgenommenen Dokumente, und die maßgeblichen Endgültigen Bedingungen stützen. Ein Anleger könnte gegebenenfalls das gesamte angelegte Kapital oder einen Teil davon verlieren. Für den Fall, dass vor einem Gericht Ansprüche aufgrund der in dem Basisprospekt oder den maßgeblichen Endgültigen Bedingungen enthaltenen Informationen geltend gemacht werden, könnte der als Kläger auftretende Anleger nach nationalem Recht die Kosten für die Übersetzung dieses Basisprospekts und der jeweiligen Endgültigen Bedingungen vor Prozessbeginn zu tragen haben. Zivilrechtlich haften die Emittentin und die Garantiegeberin nur, wenn sie die Zusammenfassung samt etwaiger Übersetzungen vorgelegt und übermittelt haben, und dies auch nur für den Fall, dass die Zusammenfassung, wenn sie zusammen mit dem Basisprospekt und den jeweiligen Endgültigen Bedingungen gelesen wird, irreführend, unrichtig oder widersprüchlich ist oder dass sie, wenn sie zusammen mit dem Basisprospekt und den jeweiligen Endgültigen Bedingungen gelesen wird, nicht die Basisinformationen vermittelt, die in Bezug auf Anlagen in die Schuldverschreibungen für die Anleger eine Entscheidungshilfe darstellen würden.
ABSCHNITT B: BASISINFORMATIONEN ÜBER DIE EMITTENTIN
B.1 Wer ist die Emittentin der Wertpapiere?
B.1.1 Sitz und Rechtsform der Emittentin, ihre LEI, für sie geltendes Recht und Land der Eintragung
Die Emittentin ist eine nach deutschem Recht errichtete und deutschem Recht unterliegende Kommanditgesellschaft auf Aktien (KGaA) mit einer Aktiengesellschaft (AG) als alleiniger Komplementärin und mit ihrem satzungsmäßigen Sitz in Hof an der Saale, Deutschland. Die LEI der Emittentin lautet 549300CP8NY40UP89Q40.
B.1.2 Haupttätigkeiten
Die Haupttätigkeit der Emittentin besteht darin, als Holdinggesellschaft für ihre Tochtergesellschaften zu fungieren, die Dialysedienstleistungen und damit verbundene Dienstleistungen für Personen, die an Nierenerkrankungen im Endstadium leiden, sowie andere Gesundheitsdienstleistungen erbringen und die eine Vielzahl von medizinischen Produkten entwickeln und herstellen, die sowohl Dialyse- als auch Nicht-Dialyseprodukte umfassen.
B.1.3 Hauptanteilseigner
Zum 11. Mai 2020 bestand das Grundkapital der Emittentin aus 304,492,501 Stammaktien. Die Fresenius SE & Co. KGaA (Fresenius SE) hielt zum 11. Mai 2020 32,2% der Stammaktien der Emittentin. Die Fresenius SE ist auch Eigentümerin von 100 % des ausstehenden Aktienkapitals der persönlich haftenden Gesellschafterin der Emittentin und hat das alleinige Recht, den Aufsichtsrat der persönlich haftenden Gesellschafterin der Emittentin
zu bestimmen. Die Else Kröner-Fresenius-Stiftung ist alleinige Aktionärin der Fresenius Management SE, der Komplementärin der Fresenius SE, und hat das alleinige Recht, den Aufsichtsrat der Fresenius Management SE zu wählen. Darüber hinaus hielt die Else Kröner-Fresenius Stiftung zum 31. Dezember 2019 26,6% des Aktienkapitals der Fresenius SE.
B.1.4 Identität der Hauptgeschäftsführer
Die alleinige persönlich haftende Gesellschafterin der Emittentin ist die Fresenius Medical Care Management AG (die pHG). Der Vorstand der pHG besteht aus Rice Powell, Helen Giza, William Valle, Olaf Schermeier, Kent Wanzek, Harry de Wit, Katarzyna Mazur-Hofsäß und Franklin W. Maddux.
B.1.5 Identität des Abschlussprüfers
Bis zum 31. Dezember 2019 war die KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Deutschland, Abschlussprüferin der Konzernabschlüsse der Emittentin für die Geschäftsjahre endend zum 31. Dezember 2019 und 2018.
B.2 Welches sind die wesentlichen Finanzinformationen über die Emittentin?
Die folgenden ausgewählten Finanzinformationen stammen aus den nach IFRS aufgestellten Konzernabschlüssen der Emittentin zum und für die drei Monate endend zum 31. März 2020 sowie für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre. KPMG AG Wirtschaftsprüfungsgesellschaft hat die Konzernabschlüsse für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre geprüft. Diese Informationen sollten zusammen mit unseren Konzernabschlüssen und den Anmerkungen zu diesen Abschlüssen gelesen werden, die mittels Verweis in den Prospekt aufgenommen wurden.
Ausgewählte Zahlen aus der Konzern-Gewinn-und Verlustrechnung |
|
|
Für die drei Monate endend |
|
Für das Geschäftsjahr endend |
|
||||
|
|
zum 31. März |
|
zum 31. Dezember |
|
||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In Mio. , mit Ausnahme Beträge je Aktie |
|
(ungeprüft) |
|
(ungeprüft) |
|
(geprüft) |
|
(geprüft) |
|
Umsatz |
|
4.488 |
|
4.133 |
|
17.477 |
|
16.547 |
|
Bruttoergebnis vom Umsatz |
|
1.411 |
|
1.265 |
|
5.396 |
|
5.155 |
|
Operatives Ergebnis |
|
555 |
|
537 |
|
2.270 |
|
3.038 |
|
Konzernergebnis, das auf die Anteilseigner der Emittentin entfällt |
|
283 |
|
271 |
|
1,200 |
|
1,982 |
|
Ergebnis je Aktie |
|
0,95 |
|
0,88 |
|
3,96 |
|
6,47 |
|
Ergebnis je Aktie bei voller Verwässerung |
|
0,95 |
|
0,88 |
|
3,96 |
|
6,45 |
|
Ausgewählte Zahlen aus der Konzern-Bilanz
|
|
Zum 31. März |
|
Zum 31. Dezember |
|
||
|
|
|
|
2019 |
|
2018 |
|
|
|
|
|
(geprüft, soweit |
|
(geprüft, so- |
|
|
|
2020 |
|
nicht anders |
|
weit nicht |
|
In Mio. |
|
(ungeprüft) |
|
angegeben) |
|
anders angegeben) |
|
Summe Vermögenswerte |
|
34.072 |
|
32.935 |
|
26.242 |
|
Summe kurzfristige Verbindlichkeiten |
|
8.602 |
|
7.007 |
|
6.268 |
|
Summe Verbindlichkeiten |
|
20.802 |
|
19.707 |
|
13.340 |
|
Nettofinanzverbindlichkeiten (ungeprüft)(1) |
|
13.172 |
|
12.774 |
|
5.400 |
|
Summe Eigenkapital |
|
13.270 |
|
13.227 |
|
12.902 |
|
(1) Nettofinanzverbindlichkeiten, eine Non-GAAP-Kennzahl, ist definiert als die Summe unserer Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen abzüglich unserer flüssigen Mittel. Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen umfassen die folgenden Bilanzpositionen: Kurzfristige Finanzverbindlichkeiten, kurzfristige Finanzverbindlichkeiten gegenüber nahestehenden Unternehmen, kurzfristig fälliger Anteil der langfristigen Finanzverbindlichkeiten, kurzfristig fälliger Anteil der langfristigen Verbindlichkeiten aus Leasingverhältnissen, kurzfristig fälliger Anteil der langfristigen Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen, langfristige Finanzverbindlichkeiten abzüglich des kurzfristig fälligen Anteils, langfristige Verbindlichkeiten aus Leasingverhältnissen abzüglich des kurzfristig fälligen Anteils und langfristige Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen abzüglich des kurzfristigen Anteils, wie sie in den konsolidierten Bilanzen der Konzernabschlüsse der Emittentin zum und für die am 31. Dezember 2019 und 2018 endenden Geschäftsjahre und dem ungeprüften Konzernabschluss der Emittentin zum und für die drei Monate endend zum 31. März 2020 dargestellt sind. Die Einführung von IFRS 16 umfasst Verbindlichkeiten aus Leasingverhältnissen und Verbindlichkeiten aus Leasingverhältnissen gegenüber nahestehenden Unternehmen (4.705 Millionen EUR), sonstige finanzielle Verbindlichkeiten aus der Änderung der bilanziellen Behandlung von Sale-and-Leaseback-Transaktionen (110 Millionen EUR) sowie zum 31. Dezember 2019 verbleibende Verbindlichkeiten aus aktivierten Leasingverträgen gemäß IAS 17, welche in Verbindlichkeiten aus Leasingverhältnissen ausgewiesen sind, zum 31. Dezember 2019 aber bereits in den Finanzverbindlichkeiten ausgewiesen waren (18 Millionen EUR).
Ausgewählte Zahlen aus der Konzern-Kapitalflussrechnung
|
|
Für die drei Monate endend |
|
Für das Geschäftsjahr endend |
|
||||
|
|
zum 31. März |
|
zum 31. Dezember |
|
||||
|
|
2020 |
|
2019 |
|
2019 |
|
2018 |
|
In Mio. |
|
(ungeprüft) |
|
(ungeprüft) |
|
(geprüft) |
|
(geprüft) |
|
Cash Flow aus betrieblicher Geschäftstätigkeit |
|
584 |
|
76 |
|
2.567 |
|
2.062 |
|
Cash Flow aus Investitionstätigkeit |
|
(312 |
) |
(2.016 |
) |
(3.286 |
) |
(245 |
) |
Cash Flow aus Finanzierungstätigkeit |
|
121 |
|
722 |
|
(467 |
) |
(682 |
) |
Flüssige Mittel am Ende des Zeitraums |
|
1.405 |
|
959 |
|
1.008 |
|
2.146 |
|
B.3 Welches sind die zentralen Risiken, die für die Emittentin spezifisch sind?
Risiken im Zusammenhang mit rechtlichen und regulatorischen Themen
· Wir sind in einer stark regulierten Industrie tätig, sodass mögliche Reformen der Gesetzgebung einen Unsicherheitsfaktor und eine Gefahr für unser Geschäftsmodell und unsere Ergebnisse darstellen könnten.
· Änderungen im Vergütungssystem und/oder den gesetzlichen Vorschriften des Gesundheitswesens könnten zu einem erheblichen Rückgang des Umsatzes und des operativen Gewinns führen.
Risiken in Bezug auf interne Kontrolle und Unternehmensführung
· Wir sind in vielen verschiedenen Rechtsordnungen tätig, und wir könnten durch eine Verletzung des U.S. Foreign Corrupt Practices Act und weltweit vergleichbarer anderer Anti-Korruptions-Gesetze beeinträchtigt werden.
· Wir haben wesentliche Schwachstellen in unserer internen Kontrolle der Finanzberichterstattung festgestellt, die, wenn sie nicht beseitigt werden, unsere Fähigkeit zur korrekten Berichterstattung über unsere finanzielle Lage und unsere Betriebsergebnisse nachteilig beeinflussen könnten.
Risiken in Bezug auf unsere Geschäftstätigkeiten und unsere Branche
· Wir sind Risiken ausgesetzt, die mit Krisen im Bereich der öffentlichen Gesundheit und Epidemien/Pandemien verbunden sind, wie z.B. der weltweiten Ausbreitung der SARS-CoV-2-Pandemie, die zu erhöhten Kosten und Einschränkungen unserer Geschäftstätigkeit und der Geschäftstätigkeit unserer Lieferanten und Kunden führen kann, was sich erheblich negativ auf unsere Geschäfts-, Betriebsund Finanzlage auswirken kann.
· Sollten Ärzte und andere Dienstleister keine Patienten mehr an unsere Gesundheitsdienstleistungseinrichtungen oder Kliniken überweisen oder unsere Erzeugnisse nicht mehr erwerben oder verschreiben, würde dies einen Rückgang der Umsatzerlöse zur Folge haben.
Risiken in Bezug auf Steuern und Rechnungslegung
· Es bestehen erhebliche Risiken im Zusammenhang mit der Schätzung der Höhe der von uns erfassten Umsätze aus Gesundheitsdienstleistungen, die sich auf den Zeitpunkt der Umsatzrealisierung auswirken oder einen wesentlichen Einfluss auf die Ertrags- und Finanzlage haben könnten.
Risiken in Bezug auf unsere Finanzlage und Unternehmensstruktur
· Unsere Verschuldung erlegt uns Beschränkungen auf. Sollte im Falle einesVerstoßes gegen diese Beschränkungen die Rückzahlung unter den Schuldverschreibungen oder bestimmten andere Finanzie rungsformen beschleunigt werden, kann nicht garantiert werden, dass unsere Aktiva ausreichen werden, um diese Verschuldung um die sonstige Verschuldung der Emittentin vollständig zu tilgen.
ABSCHNITT C: BASISINFORMATIONEN ÜBER DIE WERTPAPIERE
C.1 Welches sind die wichtigsten Merkmale der Wertpapiere?
C.1.1 Art, Gattung und ISIN
Die Schuldverschreibungen sind fest verzinsliche Schuldverschreibungen. Sie werden unter der Seriennummer 5, Tranchennummer 1, ISIN XS2178769076 ausgegeben.
C.1.2 Währung, Stückelung, Nennwert, Anzahl der begebenen Wertpapiere und Laufzeit
Die Schuldverschreibungen sind in Euro begeben. Die festgelegte Stückelung je Schuldverschreibung ist EUR 1.000. Die Anzahl der Schuldverschreibungen beträgt 500.000. Die Laufzeit der Schuldverschreibungen beträgt 6 Jahre.
C.1.3 Mit den Wertpapieren verbundene Rechte
Jeder Inhaber von Schuldverschreibungen (jeweils ein Gläubiger) hat aus ihnen das Recht, Zahlungen von Zinsen und Kapital von der Emittentin zu verlangen, wenn diese Zahlungen gemäß den Emissionsbedingungen der Schuldverschreibungen (die Emissionsbedingungen) fällig sind. Soweit nicht zuvor bereits zurückgezahlt oder angekauft und entwertet, wird jede Schuldverschreibung am Fälligkeitstag zum Nennbetrag zurückgezahlt.
Garantie
Die Garantiegeberin garantiert unbedingt und unwiderruflich die ordnungsgemäße und pünktliche Zahlung von Zinsen und Kapital und etwaigen zusätzlichen Beträgen auf die Schuldverschreibungen. Die von der Garantiegeberin gewährte Garantie enthält Freigabemechanismen bei Eintritt von bestimmten, in der Garantie dargelegten Umständen.
Negativverpflichtung
Die Schuldverschreibungen enthalten eine eingeschränkte Negativverpflichtung.
Kündigungsgründe
Die Schuldverschreibungen sehen Kündigungsgründe vor, die die Gläubiger berechtigen, die unverzügliche Rückzahlung der Schuldverschreibungen zu verlangen.
Cross-Default
Die Schuldverschreibungen enthalten eine Cross-Default-Bestimmung.
Kontrollwechsel
Die Schuldverschreibungen enthalten ein Recht der Gläubiger, eine vorzeitige Rückzahlung von der Emittentin im Falle eines Kontrollwechsels zu verlangen.
Beschränkung von Rechten
Vorzeitige Rückzahlung
Die Schuldverschreibungen können vor Ablauf ihrer festgelegten Laufzeit aus steuerlichen Gründen oder ansonsten nach Wahl der Emittentin gekündigt und vorzeitig zurückgezahlt werden. Die Schuldverschreibungen können ferner nach Wahl der Emittentin bei geringfügig ausstehendem Nennbetrag gekündigt und vorzeitig zurückgezahlt werden.
Beschlüsse der Gläubiger: In Übereinstimmung mit dem Gesetz über Schuldverschreibungen aus Gesamtemissionen (SchVG) enthalten die Schuldverschreibungen Bestimmungen, nach denen die Gläubiger der Schuldverschreibungen (mit Zustimmung der Emittentin) eine Änderung der Emissionsbedingungen oder sonstige Maßnahmen im Hinblick auf die Schuldverschreibungen beschließen können. Ordnungsgemäß entweder in einer Gläubigerversammlung oder im Wege einer Abstimmung ohne Versammlung gemäß den Emissionsbedingungen gefasste Beschlüsse der Gläubiger sind für alle Gläubiger verbindlich. Beschlüsse, welche Änderungen wesentlicher Inhalte der Emissionsbedingungen vorsehen, bedürfen einer Mehrheit von mindestens 75% der teilnehmenden Stimmrechte. Beschlüsse, welche andere Änderungen vorsehen, werden mit einfacher Mehrheit der teilnehmenden Stimmrechte gefasst.
C.1.4 Rang der Wertpapiere in der Kapitalstruktur der Emittentin im Fall einer Insolvenz
Die Schuldverschreibungen begründen nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende Bestimmungen ein Vorrang eingeräumt wird.
C.1.5 Beschränkungen der freien Handelbarkeit der Wertpapiere
Entfällt. Die Handelbarkeit der Schuldverschreibungen ist nicht beschränkt.
C.1.6 Angaben zur Ausschüttungspolitik (Verzinsung)
Die Schuldverschreibungen werden ab dem 29. Mai 2020 (einschließlich) zu einem festen Zinssatz von jährlich 1,000 Prozent bezogen auf ihren Nennbetrag verzinst. Die Zinsen sind nachträglich an jedem Zinszahlungstag zahlbar.
Zinszahlungstag bezeichnet den 29. Mai eines jeden Jahres; der erste Zinszahlungstag ist der 29. Mai 2021.
Fälligkeitstag
Soweit nicht zuvor bereits ganz oder teilweise zurückgezahlt oder angekauft und entwertet, werden die Schuldverschreibungen am 29. Mai 2026 zu ihrem Nennbetrag zurückgezahlt.
Rendite
Die Rendite entspricht 1,103% per annum.
C.2 Wo werden die Wertpapiere gehandelt?
Für die Schuldverschreibungen ist ein Antrag auf Zulassung zum Börsenhandel im regulierten Markt der Luxemburger Wertpapierbörse gestellt worden.
C.3 Wird für die Wertpapiere eine Garantie gestellt?
C.3.1 Art und Umfang der Garantie
Die Garantiegeberin garantiert in Bezug auf die von der Emittentin ausgegebenen Schuldverschreibungen uneingeschränkt und unwiderruflich die ordnungsgemäße Zahlung von Zinsen und des Nominalbetrages sowie zusätzlicher Beträge, falls solche anfallen.
C.3.2 Beschreibung der Garantiegeberin
Der juristische Name der Garantiegeberin ist Fresenius Medical Care Holdings, Inc. und ihr LEI ist XTHT88D08CLK11B3GJ82. Da in den USA kein allgemeines Gesellschaftsrecht auf Bundesebene existiert, ist sie organisiert und existiert unter dem Business Corporation Law des Bundesstaates New York. Ihre Geschäftsräume befinden sich in 920 Winter Street, Waltham, Massachusetts, 02451-1457, USA, und ihre Telefonnummer lautet +1 (781) 699-9000.
C.3.3 Wesentliche Finanzinformationen über die Garantiegeberin
Die folgenden ausgewählten Finanzinformationen stammen aus den geprüften nach U.S. GAAP aufgestellten Konzernabschlüssen der Garantiegeberin zum und für die zum 31. Dezember 2019 und 2018 endenden Geschäftsjahre. KPMG LLP hat diese Konzernabschlüsse geprüft. Diese Informationen sollten zusammen mit den Konzernabschlüssen der Garantiegeberin und den Anmerkungen zu diesen Abschlüssen gelesen werden, die mittels Verweis in den Prospekt aufgenommen wurden.
Ausgewählte Zahlen aus der Konzern-Gewinn- und Verlustrechnung
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Für das Geschäftsjahr endend zum |
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31. Dezember |
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2019 |
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2018 |
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In Mio. US$ |
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(geprüft) |
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(geprüft) |
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Umsatzerlöse aus Gesundheitsdienstleistungen, netto |
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12.531 |
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12.592 |
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Umsatzerlöse aus medizinischem Zubehör |
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1.124 |
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961 |
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Aufwendungen |
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12.435 |
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11.269 |
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Ergebnis vor Ertragsteuern |
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1.220 |
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2.283 |
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Ergebnis |
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973 |
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1.841 |
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Auf nicht beherrschende Anteile entfallendes Ergebnis |
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264 |
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264 |
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Auf die Garantiegeberin entfallendes Ergebnis |
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709 |
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1.577 |
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Ausgewählte Zahlen aus der Konzern-Bilanz |
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Zum 31. Dezember |
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2019 |
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2018 |
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(geprüft, soweit |
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(geprüft, soweit |
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nicht anders |
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nicht anders |
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In Mio. US$ |
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angegeben) |
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angegeben) |
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Summe Vermögenswerte |
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25.578 |
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20.592 |
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Summe kurzfristige Verbindlichkeiten |
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3.379 |
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3.280 |
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Summe Verbindlichkeiten |
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14.012 |
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8.475 |
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Summe Eigenkapital |
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10.464 |
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11.151 |
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Nettofinanzverbindlichkeiten (ungeprüft)(1) |
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10.293 |
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3.081 |
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(1) Nettofinanzverbindlichkeiten ist eine Non-GAAP-Kennzahl. Wir definieren Nettofinanzverbindlichkeiten als die Summe der Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen der Garantiegeberin abzüglich der flüssigen Mittel der Garantiegeberin. Die Finanzverbindlichkeiten und Verbindlichkeiten aus Leasingverhältnissen der Garantiegeberin umfassen die folgenden Bilanzpositionen: kurzfristige Darlehen gegenüber nahestehenden Unternehmen, kurzfristig fälliger Anteil der Verbindlichkeiten
aus Leasingverhältnissen, kurzfristige Darlehen, kurzfristig fälliger Anteil der langfristigen Finanzverbindlichkeiten, langfristige Finanzverbindlichkeiten, langfristige Darlehen gegenüber nahestehenden Unternehmen und langfristige Verbindlichkeiten aus Leasingverhältnissen, wie sie in den konsolidierten Bilanzen der konsolidierten Jahresabschlüsse der Garantiegeberin zum und für die am 31. Dezember 2019 und 2018 endenden Geschäftsjahre dargestellt sind.
Ausgewählte Zahlen aus der Konzern-Kapitalflussrechnung
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Für das Geschäftsjahr endend zum |
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31. Dezember |
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2019 |
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2018 |
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In Mio. US$ |
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(geprüft) |
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(geprüft) |
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Cash Flow aus betrieblicher Geschäftstätigkeit |
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1.504 |
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1.480 |
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Cash Flow aus Investitionstätigkeit |
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(3.116 |
) |
922 |
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Cash Flow aus Finanzierungstätigkeit |
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237 |
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(1.185 |
) |
Flüssige Mittel am Ende des Jahres |
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467 |
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1.848 |
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C.3.4 Die wesentlichsten Risikofraktoren, die für die Garantiegeberin spezifisch sind
· Die Garantiegeberin bezieht im Wesentlichen alle ihre Erträge aus ihren jeweiligen Tochtergesellschaften, und ihre Struktur als Holdinggesellschaft kann die Fähigkeit der Garantiegeberin einschränken, von den Vermögenswerten ihrer Tochtergesellschaften zu profitieren. Zudem ist die Garantie strukturell nachrangig gegenüber den Verbindlichkeiten der Garantiegeberin, soweit diese Verbindlichkeiten durch Vermögenswerte besichert sind, die nicht zugleich die Schuldverschreibungen besichern.
C.4 Welches sind die zentralen Risiken, die für die Wertpapiere spezifisch sind?
Risiken in Bezug auf die persönlichen Verhältnisse und die Fanzlage jedes Investors
· Die Schuldverschreibungen sind möglicherweise nicht für alle Anleger als Anlage geeignet. Jeder potenzielle Anleger in den Schuldverschreibungen muss die Eignung dieser Anlage vor dem Hintergrund seiner persönlichen Verhältnisse prüfen.
Risiken in Bezug auf die Beschaffenheit und den Rang der Wertpapiere
· Die Schuldverschreibungen sind strukturell nachrangig gegenüber Ansprüchen anderer Gläubiger gegenüber Gesellschaften der Gruppe, die keine Garantien zugunsten der Gläubiger der Schuldverschreibungen abgegeben haben.
· Die Schuldverschreibungen und die Garantie sind effektiv nachrangig gegenüber Verbindlichkeiten der Gruppe, soweit diese Verbindlichkeiten durch Vermögenswerte besichert sind, die nicht zugleich die Schuldverschreibungen besichern.
· Die Emittentin und die Garantiegeberin sind beide auf Ausschüttungen ihrer Tochtergesellschaften angewiesen, um ihren Zahlungsverpflichtungen nachzukommen.
· Auch wenn die Gläubiger bei Eintritt bestimmter Kontrollwechselereignisse berechtigt sind, die Rückzahlung bzw. den Rückkauf der Schuldverschreibungen zu verlangen, könnte die Emittentin nicht in der Lage sein, die Schuldverschreibungen zurückzuzahlen bzw. zurückzukaufen.
Risiken im Hinblick auf die Garantiegeberin und die Garantie
· U.S. Bundesrecht und Landesrecht erlaubt Gerichten, unter bestimmten Umständen, die Garantie für nichtig zu erklären und Gläubiger zur Rückzahlung von Zahlungen zu verpflichten, die sie von der Garantiegeberin erhalten haben.
ABSCHNITT D: BASISINFORMATIONEN ÜBER DAS ÖFFENTLICHE ANGEBOT VON WERTPAPIEREN UND/ODER DIE ZULASSUNG ZUM HANDEL AN EINEM GEREGELTEN MARKT
D.1 Zu welchen Konditionen und nach welchem Zeitplan kann ich in dieses Wertpapier investieren?
Zulassung zum Handel: Bei der Luxemburger Börse wurde ein Antrag auf Notierung der Schuldverschreibungen in der Official List der Luxemburger Börse und auf Zulassung der Schuldverschreibungen zum Handel am geregelten Markt der Luxemburger Börse gestellt.
Die Schuldverschreibungen werden durch die Emittentin nicht öffentlich angeboten. Die Zustimmung zu der Verwendung des Prospekts und der Endgültigen Bedingungen zu der späteren Weiterveräußerung und der endgültigen Platzierung der Schuldverschreibungen durch alle Finanzintermediäre wird von der Emittentin in Bezug auf Luxemburg und Deutschland erteilt. Die spätere Weiterveräußerung und endgültige Platzierung der Wertpapiere durch Finanzintermediäre kann während der Angebotsfrist erfolgen, die am 27. Mai 2020 beginnt und am 29. Mai 2020 endet.
Geschätzte Gesamtkosten der Emission und/oder des Angebots (einschließlich der den Anlegern von der Emittentin oder dem Anbieter berechneten Kosten: EUR 50.000
D.2 Weshalb wurde dieser Basisprospekt erstellt?
D.2.1 Zweckbestimmung der Erlöse und geschätzte Nettoerlöse
Die Nettoerlöse der Emission werden für allgemeine Geschäftsaktivitäten der Emittentin verwendet, einschließlich der Refinanzierung bestehender Verbindlichkeiten.
Die geschätzten Nettoerlöse der Emission betragen EUR 496.025.000.
D.2.2 Übernahmevertrag
Die Emission der Schuldverschreibungen ist Gegenstand eines verbindlichen Übernahmevertrages vom 27. Mai 2020.
D.2.3 Wesentliche Interessenkonflikte
Keine.
CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Rice Powell, certify that:
Date: July 30, 2020
By: |
/s/ RICE POWELL
Rice Powell |
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Chief Executive Officer and Chairman of the Management Board of the General Partner |
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CERTIFICATION PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Helen Giza, certify that:
Date: July 30, 2020
By: |
/s/ HELEN GIZA
Helen Giza |
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Chief Financial Officer and member of the Management Board of the General Partner |
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CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the report of Fresenius Medical Care AG & Co. KGaA (the "Company") on Form 6-K furnished for the month of July 2020 containing its unaudited financial statements as of June 30, 2020 and for the six-month periods ending June 30, 2020 and 2019, as submitted to the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Rice Powell, Chief Executive Officer and Helen Giza, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
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By: |
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/s/ RICE POWELL Rice Powell Chief Executive Officer and Chairman of the Management Board of the General Partner |
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July 30, 2020 |
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By: |
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/s/ HELEN GIZA Helen Giza Chief Financial Officer and member of the Management Board of the General Partner |
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July 30, 2020 |
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