Fresenius Vamed

In 2019, we recorded excellent sales development of 31% and organic sales growth of 16%. The integration of post-acute care facilities in Germany has been successfully com­pleted and further strengthens our service business. A very strong order book secures future growth in the project business.

Fresenius Vamed manages projects, provides services for hospitals and other health care facilities worldwide, and is a leading post-acute care provider in Central Europe. Our portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management, as illustrated in the diagram. Our offerings target different areas of health care, from prevention to acute care, rehabilitation, and nursing care. We are active in 95 countries on 5 continents. This comprehensive range of competencies enables us to support complex health care facilities efficiently and successfully at each stage of their life cycle. As a spe­cialist provider that can deliver the full spectrum of services worldwide, we are in a unique position. We have thus far successfully completed around 960 projects.

Business development

In 2019, Fresenius Vamed increased sales by 31% (19% 1) to € 2,206 million. Organic growthOrganic growthGrowth that is generated by a company’s existing businesses and not by acquisitions, divestitures, or foreign exchange impact. was 16%. Currency trans­lation effects had no major impact on sales.

EBIT 2 grew by 19% (6% 1) to € 131 million (2018: € 110 million). The EBIT marginEBIT marginEBIT margin is calculated as the ratio of EBIT to sales. decreased to 5.9% (2018: 6.5%). EBITEBIT (Earnings before Interest and Taxes)EBIT does include depreciation and write-ups on property, plant and equipment. EBIT is calculated by subtracting cost of sales, selling, general and administrative expenses, and research and development expenses from sales. 2 in the project business remained on the previous year’s level at € 30 million. In the service business, EBIT 2 grew by 26% to € 101 million. Net income 2, 3 improved to € 85 million (2018: € 72 million).

1 Adjusted for the post-acute care business transferred from Fresenius Helios to Fresenius Vamed as of July 1, 2018.

2 Adjusted for IFRS 16 effect

3 Net income attributable to VAMED AG

Sales by region
€ in millions 2019 2018 Change % of total
Fresenius Vamed sales
Europe 1,823 1,312 39% 83%
Africa 81 109 – 26% 3%
Asia-Pacific 198 221 – 10% 9%
Latin America 104 46 126% 5%
Total 2,206 1,688 31% 100%
Sales by business segment
€ in millions 2019 2018 Change % of total
Fresenius Vamed sales
Project business 807 712 13% 37%
Service business 1,399 976 43% 63%

Project business

VAMED’s project business comprises consulting on projects, project development, planning, turnkey construction, and financing management of projects. VAMED responds flexibly to the local needs of clients, providing custom-tailored solutions all from one source. We also carry out projects in cooperation with partners. With 26 implemented projects, VAMED is a pioneer in public-private partnership (PPPPPP (public-private partnership model)Public-private partnership describes a government service or private business venture that is funded and operated through a partnership of government and one or more private-sector companies. In most cases, PPP accompanies a part-privatization of governmental services.) projects.

In Europe, VAMED has continued its positive development. The modernization of the University Hospital Schleswig-Holstein (UKSH), the largest PPP project in the German health care sector, marks a major milestone: in 2019, the newly built central clinics at the Kiel and Lübeck sites were handed over. We were commissioned with the turnkey construction of hospitals in Velbert and Duisburg.

In Austria, VAMED is implementing numerous projects at Vienna’s General Hospital (AKH) until 2030. Modernization work is being carried out and new buildings erected without interrupting operations. We are also realizing other projects, in Germany, Austria, Switzerland, the Netherlands, and Poland, amongst others.

Order intake and order backlog for projects
€ in millions 2019 2018 Growth
Order intake 1,314 1,227 7%
Order backlog
(December 31)
2,865 2,420 18%

We have also obtained important contracts in Africa, including the turnkey construction of four general hospitals in Ivory Coast as well as construction contracts in Ghana and Mozambique. In the Asia-Pacific region, new orders were received from India, Malaysia, Thailand, China, Laos, and Sri Lanka. In the Middle East, we received an expansion order to supply medical technology to the United Arab Emirates and a construction contract in Jordan. In Latin America, VAMED is responsible for new projects in Bolivia as well as Trinidad and Tobago.

Service business

Modular in design, our service offering encompasses every aspect of technical, commercial, and infrastructural facility management as well as the total operational management for health care facilities. The service business includes building and equipment maintenance, medical technology management, and technical management. Our integrated portfolio of services is aimed at the optimal operation of a health care facility.

In 2019, we provided services for about 890 health care facilities with 205,000 beds worldwide as part of the tech­nical operational management. The acquisition of IHSS Limited, a leading provider of sterile services in the United Kingdom, strengthens the high-end services sector.

In Austria, we continued the partnership we have maintained since 1986 with Vienna’s General Hospital (AKH). In Germany, amongst others, we have been providing technical services for UKSH since mid- 2015. In addition, we received new orders in important European markets such as Germany, Austria, the United Kingdom, Croatia, and Spain.

The health care facilities that VAMED acquired from Fresenius Helios with a focus on inpatient rehabilitation and care were successfully integrated.

This acquisition makes VAMED one of the leading private providers of rehabilitation services in Europe. In Austria, we are the largest private provider of rehabilitation services and have expanded our range to include new outpatient rehabilitation facilities. In Switzerland, we are the second-­largest private rehabilitation provider. We also operate other well-known rehabilitation facilities in the Czech Republic and the United Kingdom.

Vamed Vitality World

With the range of services offered by VAMED Vitality World, we are building a bridge between preventive medicine and health tourism in spa and health resorts. We are a leader in the Austrian market and currently operate nine thermal and health care spa resorts.