Fresenius Vamed

Our company developed very well in 2018 and achieved both its sales target and its earnings target, which had been increased in the course of the year. The acquisition of post-acute care facilities in Germany strengthens our service business. A strong order book secures future growth in the project business.

Vamed content

In 2018, Fresenius Vamed acquired post-acute care facilities from Fresenius Helios to further strengthen its service 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. Our offerings target different areas of health care, from prevention to acute care, rehabilitation and nursing care. 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 more than 900 projects in about 90 countries.

Business development

In 2018, Fresenius Vamed increased sales by 37% to €1,688 million. Organic growth was 16%. Currency trans­lation effects had no major impact on sales.

EBIT grew by 45% (9% 1) to €110 million (2017: €76 million). The EBIT margin increased to 6.5% (2017: 6.2%). EBIT in the project business increased by 11% to €30 million. In the service business, EBIT grew by 63% to €80 million. Net income 2 improved to €72 million (2017: €50 million).

1 Adjusted for German post-acute care business transferred from Fresenius Helios to Fresenius Vamed

2 Net income attributable to VAMED AG

Sales by region
€in millions 2018 2017 Change % of total
Fresenius Vamed sales
Europe 1,312 889 48% 78%
Africa 109 92 18% 6%
Asia-Pacific 221 200 11% 13%
Latin America 46 47 - 2% 3%
Total 1,688 1,228 37% 100%
The table shows the sales development by activity:
€in millions 2018 2017 Change % of total
Fresenius Vamed sales
Project business 712 606 17% 42%
Service business 976 622 57% 58%
EN P.31 Value Chain content

Project business

VAMED’s project business comprises the consulting, 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 25 implemented projects, VAMED is a pioneer in public-private partnership (PPP) projects.

In Europe, VAMED has continued its positive development. Among other things, we moved forward with construction and modernization of the University Hospital Schleswig- Holstein (UKSH), the largest PPP project in the German health care sector. The handover of the new buildings at the two locations in Kiel and Lübeck is planned for the second half of 2019. We were commissioned with the turnkey construction of a research facility in Potsdam. In Austria and Switzerland, we received orders to expand rehabilitation clinics. In Bosnia-Herzegovina, we completed the new clinic center in Banja Luka, the largest health care facility in the region. We are also supporting other projects, including in the Netherlands, Poland, Switzerland, and Italy.

We have also obtained important contracts in Africa, including the turnkey construction of general hospitals in Angola. In the Asia-Pacific region, new orders were received from Indonesia, Mongolia, Sri Lanka, and Vietnam. In the Middle East, we received an order to supply medical technology to Oman. In Abu Dhabi, the construction of an integrated health care center is progressing. In Latin America, VAMED is responsible for new projects in Nicaragua, Bolivia, and Trinidad and Tobago.

Order intake and order backlog for projects
€in millions 2018 2017 Change
Order intake 1,227 1,096 12%
Order backlog (December 31) 2,420 2,147 13%

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.

We were responsible for the total operational management of 100 health care facilities with approximately 18,000 beds in 2018. In addition, as part of its technical operation services, VAMED provides services glob­ally to more than 840 health care facilities with approximately 193,000 beds. Acquisitions in Germany and the United Kingdom have strengthened the high-end services segment.

In Austria, we continued the partnership we have maintained since 1986 with Vienna’s General Hospital (AKH), one of Europe’s largest hospitals. In Germany, we have been providing technical services for UKSH since mid- 2015. In addition to Germany and Austria, we have obtained new service contracts in important European markets such as Austria, Italy, the Netherlands, the United Kingdom, and Spain.

On July 1, 2018, VAMED acquired from Fresenius Helios 38 health care facilities and 13 service companies in Germany with a focus on inpatient rehabilitation and care. This acquisition makes VAMED a leading provider of private rehabilitation services in Europe. We are the largest private provider in Austria and have expanded our offer to include a children’s rehabilitation facility. In Switzerland, we strengthened our position as 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 operate Hungary’s largest thermal and health care spa, the Aqua World Budapest.

Please refer to  the Group Management Report for the 2019 financial outlook. For further information, please see Fresenius Vamed’s website at www.vamed.com.