Fresenius SE & Co. KGaA
Investor Relations & Sustainability
+49 (0) 6172 608-2485
In 2019, Fresenius increased its Group sales guidance and achieved its Group earnings guidance. This contributed to a significant recovery in the Fresenius share price of 18% during the year. Based on the healthy business development, we propose the 27th consecutive dividend increase.
After a volatile start to the year, which was marked by fears of recession and geopolitical risks, the financial markets rose significantly as the year progressed. Furthermore, the slight improvement in the trade conflict between the United States and China towards the end of the year had a calming effect on the markets.
The DAX increased by 25%; the EURO STOXX 50 gained 25% for the year. The STOXX Europe 600 index ended the year up by 23%. In this index, the subsector STOXX Europe 600 Health Care increased by 28%. The leading U.S. indices performed as follows: the S & P 500 and the Dow Jones Industrial Average both increased, by 29% and 22%, respectively.
The closing price for the Fresenius share on December 31, 2019, was € 50.18 and thus 18% above the closing price of 2018.
The market capitalization of Fresenius was € 28 billion as of December 31, 2019, an increase of 18% compared to the previous year. The average daily trading volume on Xetra increased by 3% to 1,693,849 Fresenius shares compared to the previous year (2018: 1,648,837). The DAX trading volume decreased by 16% in the same comparison time period.
Fresenius shares remain an attractive investment. Anyone who invested € 1,000 ten years ago and reinvested the dividends would have increased their capital to € 3,465 as of December 31, 2019. That is an average annual return of 15% (before expenses and taxes).
In the United States, Fresenius has a Sponsored Level I American Depositary Receipt (ADR) program. In this program, four Fresenius ADRs correspond to one Fresenius share. The ADRs are traded in the OTCQX International Premier market segment.
The total number of issued shares at the end of 2019 was 557,379,979 (December 31, 2018: 556,225,154 shares). The increase is due to the exercise of options in accordance with stock option plans. Information on stock option plans can be found in the Notes.
|Number of shares||557,379,979||556,225,154||554,710,473||547,208,371||545,727,950|
|Stock exchange quotation 1 in €|
|Market capitalization 2 in million €||27,969||23,573||36,095||40,636||36,002|
|Total dividend distribution in million €||468.0 3||445.0||416.0||343.1||300.2|
|Dividend per share in €||0.84 3||0.80||0.75||0.62||0.55|
|Earnings per share in € 4||3.37||3.37||3.28||2.85||2.64|
Our investor relations activities are in accordance with the transparency rules of the German Corporate Governance Code. We communicate comprehensively, promptly, and openly with private and institutional investors, as well as financial analysts. The equal treatment of all market actors is very important to us.
We maintained our intense dialog with the capital markets in 2019. In addition to its conference calls and webcasts, Fresenius gave presentations in major European, U.S., Canadian, and Asian financial markets. We expanded our contacts with institutional investors and analysts at 33 international investor conferences, 21 roadshows, and in numerous one-on-one meetings. We also organized field trips with banks, giving investors and analysts the opportunity to discuss matters with the Management Board.
The Fresenius investor relations team and the management team were recognized in the results of the Extel Survey, a broad survey conducted by the company Thomson Reuters, which annually surveys some 15,000 investors and analysts on various aspects of good investor relations. On this occasion, the Fresenius investor relations team was honored, once again, as the best in the MedTech sector in Europe.
In addition, Fresenius’ management and investor relations team leads the “Manager Magazin” long-term ranking for the best average score over three years for the best financial communication of DAX companies.
We also continued the dialog with our private investors, especially via the Internet. Furthermore, we participate in private shareholder events. At www.fresenius.com/events-and-presentations our private shareholders can follow live webcasts of the conference calls and can make use of the continuously increasing range of information offered on our website and social media channels.
If you would like to contact us or find out about our 2020 financial calendar, please take a look at the last page of this Annual Report. For additional information visit us at www.fresenius.com/investors.
In 2019, Fresenius again delivered good financial results. For the 27th consecutive year, we are proposing to our shareholders to increase the dividend – by 5% per share, to € 0.84 (2018: € 0.80). The proposed dividend distribution to the shareholders of Fresenius SE & Co. KGaA will be € 468 million, equivalent to 24% of Group net income. Based on the proposed dividend and the closing price at the end of 2019, the dividend yield is 1.7%.
The following charts show the shareholder structure at the end of 2019. The Else Kröner-Fresenius-Stiftung was the largest shareholder of Fresenius SE & Co. KGaA, with 26.6% of the shares. According to notifications pursuant to the German Securities Trading Act (WpHG), Allianz Global Investors GmbH and BlackRock, Inc. each held about 5% of the shares. For further information on notifications, please visit www.fresenius.com/shareholder-structure.
As of December 31, 2019, a shareholder survey identified the ownership of about 94% of our subscribed capital. The shareholder base of Fresenius is solid: a total of approximately 600 institutional investors held about 350 million shares or 62% of the subscribed capital; 29.9 million shares were identified as retail holdings. The 10 largest investors held about 23% of the share capital. Our shares were mostly held by investors in Germany, the United States, and the United Kingdom.
The recommendations published by financial analysts are an important guide for institutional and private investors when making investment decisions. According to our survey, as of February 18, 2020, we were rated with 13 “buy”, 7 “hold”, and no “sell” recommendations.
The list of banks that provide regular analyst coverage of Fresenius and their latest recommendations can be found at http://www.fresenius.com/analysts-and-consensus.