On this page of StockholderLetter.com we present the latest annual shareholder letter from DAVITA INC. — ticker symbol DVA. Reading current and past DVA letters to shareholders can bring important insights into the investment thesis.

 •  4/26/2024 Letter Continued (Full PDF)
 •  4/25/2023 DVA Stockholder Letter
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DVA Shareholder/Stockholder Letter Transcript:

Annual
Report
2023


April 26, 2024
Dear Stakeholders:
In 2023, DaVita embraced a refreshed vision     an unwavering pursuit of a healthier tomorrow     to reflect our
commitment to setting a new standard for healthcare services. This reflects a bold commitment to deliver highquality care to our patients, provide purpose-driven career opportunities for our teammates, make a positive impact
on the communities we serve and create value for our stakeholders. In 2023, we made meaningful progress to
advance our vision. Specifically, we:



provided integrated kidney care services to approximately 58,000 patients in risk-based arrangements and
to an additional 17,000 patients in other integrated care arrangements, together an increase of more than
30 percent year-over-year,
achieved the highest number of annual transplants in our history, with more than 8,000 DaVita patients
receiving a kidney transplant,
advanced innovation in kidney care through the launch of Mozarc Medical, our co-investment with
Medtronic, dedicated to improving access, experience and outcomes for kidney patients treating at home,
achieved a new Kidney Smart   milestone: providing no-cost, comprehensive kidney health education to
more than 37,000 people in 2023,
advanced our digital modernization plan with the national deployment of our next generation clinical
platform, and
demonstrated operating rigor to grow operating income by approximately 20 percent over last year.
These results are driven by the passion and dedication of our teammates, the majority of whom are clinical
caregivers. In 2023, we completed the expansion of Clinical Ladders, our career pathways program for nurses and
patient care technicians, offering teammates role clarity and access to the development opportunities that support
their professional ambitions. Through Clinical Ladders, we have celebrated more than 20,000 promotions, while
more than 2,000 teammates 1 are pursuing or have received their nursing degree, funded by DaVita, as part of our
Bridge to Your Dreams program. DaVita is also doing its part to address the industry-wide clinician shortage by
collaborating with universities to create an equitable pipeline to health care practice.
At the same time, we continue efforts to increase diverse representation at every level of the organization. Our U.S.
teammate population is composed of 78% women1 and 57% people of color1, and we have created an environment
where more than 80% of all teammates feel like they belong based on 2023 teammate surveys. Together with this
dedicated team, we remain committed to the essential role DaVita plays in delivering life-sustaining care to patients
in communities across the United States and around the world.
Financial Performance
In 2023, operating income was $1.603 billion and adjusted operating income 2 was $1.734 billion, each representing
approximately 20% growth from 2022.
Operating cash flow was $2.059 billion and free cash flow2 was $1.236 billion in 2023. We returned our leverage
ratio to our target range of 3.0x to 3.5x through a combination of debt paydown and Consolidated EBITDA increase3;
invested $26 million in acquisitions; and returned $286 million of capital to stockholders via repurchases of almost
three million shares of our common stock, reducing our shares outstanding by approximately two percent since the
beginning of the year.
1
As of December 31, 2023.
For a reconciliation of non-GAAP financial measures to comparable GAAP measures, please see pages 72 - 74 of the accompanying Annual
Report on Form 10-K.
3
Leverage ratio and Consolidated EBITDA each as defined by our credit agreement.
2

Commitment to Corporate Social Responsibility
Our    community first    philosophy extends from the compassionate care we provide to our patients to also include
how we care for our teammates, the communities we serve and the environment. This sets the foundation for our
environmental, social and governance (ESG) focus areas. The Dow Jones Sustainability World Indices recognized
DaVita for the sixth consecutive year for our corporate responsibility initiatives and ESG practices. Our annual
Community Care report reinforces our long-standing commitment to corporate citizenship and celebrates the
meaningful progress made toward our goals.
Selected social responsibility highlights from this past year include:




The 2023 DaVita Health Tour provided thousands of community members across the country with free
health screenings and education focused on kidney health.
Through a sponsorship of the American Diabetes Association ("ADA"), DaVita and the ADA provided digital
educational content aimed at helping those living with diabetes prevent and manage kidney disease.
Through support from the DaVita Giving Foundation, the Food is Medicine Coalition provided 140,000+
medically tailored meals to people with food insecurity and medical nutrition needs, including individuals
living with end stage kidney disease.
Our virtual power purchase agreements continue to produce enough renewable energy to power 100% of
our U.S. operations.
Our first net zero dialysis clinic is now operational.
100+ million gallons of water were saved through water efficiency projects.
Our 2023 climate change score of    A-    from CDP, formerly known as the Carbon Disclosure Project, a global
nonprofit that runs the world   s leading environmental disclosure platform, was in the highest "Leadership"
category. DaVita is the only North American health care provider to achieve this distinction.
To learn more, we encourage you to read our 2023 Community Care social responsibility report, which will be
available at www.davitacommunitycare.com.
Conclusion
With a focus on responsible resource allocation, we continue to create better outcomes for our patients and
physician partners, purpose-driven career opportunities for our teammates, and more value for all of our
stakeholders. On behalf of the more than 250,000 patients we serve, we will continue our unwavering pursuit of a
healthier tomorrow.
Very truly yours,
Javier J. Rodriguez
Director and Chief Executive Officer
Pamela M. Arway
Independent Chair of the Board
This letter contains or refers to certain forward-looking statements within the meaning of the federal securities laws. Please see pages 58 - 59
of the accompanying Annual Report on Form 10-K for more information regarding these forward-looking statements.



 4/26/2024 Letter Continued (Full PDF)