Fresenius SE & Co. KGaA

Investor Presentation • Feb 22, 2022

Conference Call │ FY/21 Results

Bad Homburg, 22 February 2022

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing.

Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

Agenda

Our Purpose and Mission

Ever better medicine for ever more people We improve people's lives by providing high quality and affordable health care

Key Messages

Good close to the year; delivered on improved FY/21 guidance

Dividend to increase to €0.92 per share – scrip dividend proposed; choice to re-invest dividend into FRE

Targets return to earnings growth

Transformation program Vision 2026 initiated for continued success

Continued progress back to normal operations expected

Ongoing recovery of business expected

2021 2022 Mid-term

Medium-term growth targets confirmed and specified

Strategic roadmap: Significant value creation expected based on new strategic imperatives

Agenda

Strategic Roadmap: Optimization phase successfully completed - set the stage to create significant value for shareholders and society

Fresenius Group: All Fresenius segments with excellent market positions and ample growth opportunities; access to sufficient capital remains key to accelerate growth

Attractive segments with ample growth opportunities	Market Position	Global Dialysis Market Leader	Leading Global Hospital Supplier	Europe's Largest Private Hospital Operator	Leading Global Hospital Projects & Services Specialist
		Home Dialysis	Vision 2026 (3+1)	International ization	Geographic Expansion
	Growth Opportu nities	Value-Based Care	Biopharma	Digital Health	Smart Health Posts and App
		Regenerative Medicine	MedTech	Outpatient Treatment	Post-Acute Care
		Chronic Kidney Disease/ Transplantation	Nutrition	Fertility Services	High-End Services & Digitalization
			Resilient IV + business		Global Healthcare Lifecycle Projects

Attractive for Fresenius to participate in further growth

Extensive growth capital required to capture opportunities across all segments

Fresenius Group: Unlocking value by defining new strategic imperatives to execute on accelerated profitable growth

Fresenius Group: Prioritizing segment capital allocation and tapping new capital sources

Fresenius Group: Significant progress on our ESG agenda

Rating and reporting progress

Rating improvements across the board: CDP Climate at "B", MSCI at "BBB" and Sustainalytics at 17.8 (Low Risk)

EU Taxonomy: 1% revenue, 49% capex, and 0% Opex is taxonomyeligible

Employee engagement

Group-wide survey to be conducted to better understand employees' concerns and demands

Consolidated results expected in Q4/2022

Performance measurement

ESG targets program on track: KPIs defined, 15% of Management's short-term incentive linked to ESG

Strategy and KPI alignment to be continued in 2022

KPIs to be included in new 2023 Long-Term Incentive Plan

Fresenius Group: Climate Targets - our Roadmap to Climate Neutrality in 2040

Agenda

Q4/21 Profit and Loss Statement

All growth rates in constant currency (cc) Before special items Net income attributable to shareholders of Fresenius SE & Co. KGaA

Q4/21 Business Segment Growth

All figures before special items

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Q4/21 Cash Flow

	Operating CF		Capex (net)		Free Cash Flow1
€m	Q4/2021	LTM Margin	Q4/2021	LTM Margin	Q4/2021	LTM Margin
	669	14.1%	-268	-4.7%	401	9.4%
	335	16.7%	-170	-7.5%	165	9.2%
	609	11.1%	-226	-5.3%	383	5.8%
	128	6.6%	-22	-3.5%	106	3.1%
Corporate/Other	8	n.a.	12	n.a.	20	n.a.
Excl. FMC ²	1,080	13.6%	-406	-6.0%	674	7.6%
	1,749	13.5%	-674	-5.3%	1,075	8.2%

¹ Before acquisitions and dividends

² Including FMC dividends

Agenda

Assumptions for Guidance FY/22

Special items are excluded.

Ongoing adverse effects from COVID-19 expected; extent will depend partly on vaccination progress and potential further virus variants.

COVID-19 case numbers expected to decline from spring 2022 onwards; in line with that elective treatments and staff availability are expected to improve.

Guidance does not reflect any potential further containment measures that could have a significant and direct impact on the health care sector without any appropriate compensation.

Headwinds from cost inflation and supply chain challenges are reflected - however no acceleration of effects vs. current environment expected.

FMC's guidance assumptions also apply to FSE guidance.

FY/22 Financial Outlook by Business Segment

€m (except	otherwise stated)		FY/21 Base	FY/21	FY/22e
		Sales growth (org)	7,193	4%	Low single-digit %
		EBIT growth (cc)	1,153	7%	Decline in high single- to low double-digit %-range
		Sales growth (org)	10,891	7%	Low-to-mid single-digit %
		EBIT growth (cc)	1,127	10%	Mid single-digit %
		Sales growth (org)	2,297	11%	High single- to low double-digit %
		EBIT growth (cc)	101	248%	Returning to absolute pre COVID levels (2019: €134 m)

Before special items and including COVID-19 effects

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

FY/22 Financial Guidance

€m (except otherwise stated)		FY/21 Base	FY/21	FY/22e
	Sales growth (cc)	37,520	5%	Mid single-digit %
	Net income growth (cc)	1,867	5%	Low single-digit %

Before special items and including COVID-19 effects Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Execution of cost & efficiency program in 2022 and 2023 leading to significantly higher savings

Savings target increased to >€150 m p.a after tax and minorities in 2023

¹ After tax and minorities

Medium-term Growth Targets 2020 – 2023 (CAGRs) confirmed and specified

Organic sales growth 4 – 7%	Bottom to middle of range confirmed
income1 Organic net growth 5 – 9%	Bottom of range confirmed

Acquisitions have smaller contributions than the ~1% additional growth originally expected

¹ Net income attributable to shareholders of Fresenius SE & Co.KGaA

Before special items

Attachments

Fresenius Kabi: Headwinds in the U.S. and China as well as macro challenges expected in 2022; transformation program Vision 2026 initiated for continued success

GPO tendering in FY/22

Melrose Park:

• Plant is fully operational
• FDA inspection expected any time
• No product launches from this plant expected in FY/22

>10 product launches planned in FY/22

Asia Pacific

China expected to be marked by significant price pressure post successful participation in NVBP tenders

China remains very attractive market with significant volume growth potential

North America Vision 2026 Macro challenges in 2022

Disappearance of COVID related extra demand

Significant headwinds from cost inflation and supply chain challenges

Increased employee fluctuation and absenteeism rate

Strategy 3+1:

• Broaden biopharmaceutical offering
• Expand in MedTech
• Roll out clinical nutrition
• • Strengthen resilience in IV business

Fresenius Kabi: Biosimilars gaining traction, however some product launch delays expected

Launch schedule

Update

Adalimumab: FDA accepted submitted aBLA1 for review; significant progress made to target for launch in important Brazilian market

Pegfilgrastim:

US: FDA approval is pending due to awaited PAI2; committed to supporting the FDA in completing its assessment as soon as possible EU: positive opinion form CHMP late January 22; expecting market authorization over coming months

Tocilizumab: progresses in line with expectations

Rituximab: Kabi entered into an exclusive license agreement with Dr. Reddy's to commercialize Rituximab in the US; Dr. Reddy's is currently executing clinical trials; FDA submission is expected in 2023

EBITDA break-even with high-triple digit € million sales now expected in 2024

Fresenius Helios: Continued progress back to normal operations

Omicron: decreasing number of COVID patients in ICUs, currently occupying ~10% of ICU capacity

Sequential admissions increase in Q4 to continue in 2022, although below pre-pandemic levels

Digital service offerings at

Curalie platform further expanded

Omicron: peak surpassed; COVID patient numbers currently decreasing occupying <15% of ICU capacity

Excellent contribution from ORP services to continue in 2022

Latin American operations on track

Patient portal with ~4.3 million registered users

2021 sales of €133 million and €19 million EBIT (consol. April 1)

Fertility services in 2021 expanded: acquisition of leading reproductive business in the U.S. and CAN; opening of new reproductive medicine facility in Vicenza, Italy

Further bolt-on acquisitions expected in 2022

Germany Spain Fertility Services External conditions

Stable reimbursement

2022 DRG inflator set at 2.29%

Inflation: increase in energy costs in Germany, personnel & material costs stable; Spain: increase in energy costs and rising personnel costs due to pandemic

Mandatory vaccination in Germany

Fresenius Vamed: Ongoing recovery of business expected; good order intake despite COVID-19

COVID-19 headwinds to ease in the course of 2022

Easing of travel restrictions and quarantine requirements expected

Lack of elective treatments – expected to recover from Spring onwards

Accelerate growth in the post-acute care business

Acquisition of an inpatient rehabilitation clinic to expand into the attractive rehabilitation market in the UK

Recovery of project business in Q4/21 – strong finish to the year

• Sales in project business increased by 62% in Q4/21 over a soft prior year quarter
• Overall order intake in FY/21 increased by 28% versus prior year

Major turnkey contracts in Q4/21:

• Smart Health Posts and App (SMAPP) telemedicine project in Ghana
• Hospital in Öhringen, Germany

Fresenius Kabi: Q4 & FY/21 Organic Sales Growth by Regions

€m	Q4/21	Δ YoY organic	FY/21	Δ YoY organic
North America	589	2%	2,258	-2%
Europe	664	0%	2,544	3%
Emerging Markets	570	-6%	2,391	12%
Total sales	1,823	-1%	7,193	4%

Fresenius Kabi: Q4 & FY/21 Organic Sales Growth by Product Segment

Total sales	1,823	-1%	7,193	4%
Medical Devices/ Transfusion Technology	356	0%	1,381	8%
Clinical Nutrition	519	-4%	2,127	10%
Infusion Therapy	237	6%	869	8%
IV Drugs	711	-2%	2,816	-2%
€m	Q4/21	Δ YoY organic	FY/21	Δ YoY organic

Fresenius Kabi: Q4 & FY/21 EBIT Growth

€m	Q4/21	Δ YoY cc	FY/21	Δ YoY cc
North America	136	1%	637	-16%
Margin	23.1%	+30 bps	28.2%	-480 bps
Europe	64	-26%	374	5%
Margin	9.6%	-290 bps	14.7%	+30 bps
Emerging Markets	199	25%	646	38%
Margin	34.9%	+880 bps	27.0%	+500 bps
Corporate and Corporate R&D	-120	9%	-504	1%
Total EBIT	279	12%	1,153	7%
Margin	15.3%	+230 bps	16.0%	+30 bps

All figures before special items

Margin growth at actual rates

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Q4 & FY/21 Key Financials

€m	Q4/21	Δ YoY cc	FY/21	Δ YoY cc
Total sales	2,882	5%1	10,891	7%1
Thereof Helios Germany	1,745	4%1	6,733	2%1
Thereof Helios Spain	1,084	9%1	4,021	15%1
Total EBIT Margin	339 11.8%	3% -60 bps	1,127 10.3%	10% -10 bps
Thereof Helios Germany Margin	171 9.8%	9% +20 bps	613 9.1%	2% -40 bps
Thereof Helios Spain Margin	162 14.9%	3% -100 bps	514 12.8%	24% +70 bps
Thereof Corporate	6	--	0	--

¹ Organic growth

All figures before special items

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Key Metrics

	FY/21	FY/20	Δ
No. of hospitals Germany - Acute care hospitals	90 87	89 86	1% 1%
No. of hospitals Spain (Hospitals)	56	52	8%
No. of beds Germany - Acute care hospitals	30,487 29,955	29,978 29,451	2% 2%
No. of beds Spain (Hospitals)	8,174	7,936	3%
Admissions Germany (acute care)	1,048,946	1,044,959
Admissions Spain (including outpatients)	17,122,592	15,037,804

Fresenius Vamed: Q4 & FY/21 Key Financials

€m	Q4/21	Δ YoY cc	FY/21	Δ YoY cc
Total sales Thereof organic sales	748	29% 29%	2,297	11% 11%
Project business	333	62%	717	13%
Service business	415	11%	1,580	10%
EBIT1 Total	66	69%	101	--
Order intake2	319	-51%	1,290	28%
Order backlog2			3,473	14%

¹ Before special items ² Project business only

Fresenius Group: Q4/21 Key Financials

€m	Q4/211	special items	Q4/21 reported	YoY cc1 Δ
Sales	9,966	-	9,966	5%
EBIT	1,166	-43	1,123	-9%
Net interest	-120	-2	-122	26%
Income taxes	-242	0	-242	10%
Net income2	521	-22	499	3%

¹ Before special items

2 Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: FY/21 Key Financials

€m	FY/211	special items	FY/21 reported	YoY cc1 Δ
Sales	37,520	-	37,520	5%
EBIT	4,252	-94	4,158	-6%
Net interest	-504	-2	-506	22%
Income taxes	-848	15	-833	6%
Net income2	1,867	-49	1,818	5%

¹ Before special items

2 Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Calculation of Noncontrolling Interests

Net income attributable to Fresenius SE & Co. KGaA	1,867	1,796
Fresenius Helios (-€16 m), Fresenius Vamed (-€4 m) and due to Fresenius Vamed's 23% external ownership (-€15 m)
Noncontrolling interest holders in Fresenius Kabi (-€58 m),	-93	-55
Noncontrolling interest holders in Fresenius Medical Care	-250	-271
Fresenius Medical Care net income not attributable to Fresenius (Q4/21: ~68%)	-690	-922
Noncontrolling interests, thereof	-1,033	-1,248
Taxes	-848	-914
Earnings before tax and noncontrolling interests	3,748	3,958
€m	FY/21	FY/20

Before special items For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Cash Flow

€m	Q4/21	LTM Margin	Δ YoY
Operating Cash Flow	1,749	13.5%	26%
Capex (net)	-674	-5.3%	16%
Free Cash Flow	1,075	8.2%	82%
(before acquisitions and dividends)
Acquisitions (net)	-157
Dividends	-77
Free Cash Flow (after acquisitions and dividends)	841	3.2%	156%

	Growth cc as reported incl. COVID-19		Estimated COVID-19 impact	cc	Estimated growth cc excl. COVID-19
	Q4/21	Q4/20	Q4/21	Q4/20	Q4/21	Q4/20
Sales	5%	5%	0% to -1%	-2% to -3%	5% to 6%	7% to 8%
Net income1	3%	2%	0% to -4%	-1% to -5%	3% to 7%	3% to 7%
	Growth cc as reported incl. COVID-19
			Estimated COVID-19 impact	cc	growth	Estimated cc excl. COVID-19
	FY/21	FY/20	FY/21	FY/20	FY/21	FY/20
Sales	5%	5%	0% to -1%	-2% to -3%	5% to 6%	7% to 8%

1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items

Fresenius Group: Proven Track Record of Deleveraging

Net Debt/EBITDA1

2002-2019 excluding IFRS 16

¹ At actual FX rates from 2002 to 2010 and at average FX rates from 2011 onwards, for both Net Debt and EBITDA; before special items; pro forma closed acquisitions/divestitures

² Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

³ Including IFRS 16

Fresenius Group: Major long-term debt maturities¹

¹ As of December 31, 2021, and based on utilization of major financing instruments, excl. Commercial Paper

² Fresenius SE & Co. KGaA EUR 372m Schuldschein & Fresenius Medical Care US Finance II, Inc. USD 700m Bond repaid at maturity on January 31, 2022.

Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q4/21

Fresenius Vamed Total	748 9,966	577 9,304	30% 7%	1% 2%	29% 5%	29% 4%	0% 1%	0% 0%
Fresenius Helios	2,882	2,637	9%	0%	9%	5%	4%	0%
Fresenius Kabi	1,823	1,815	0%	2%	-2%	-1%	0%	-1%
Fresenius Medical Care	4,647	4,400	6%	3%	3%	2%	1%	0%
€m	Q4/21	Q4/20	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others

Sales by Business Segment – FX, Acquisitions/Divestitures Effects FY/21

Total	37,520	36,277	3%	-2%	5%	4%	1%	0%
Fresenius Vamed	2,297	2,068	11%	0%	11%	11%	0%	0%
Fresenius Helios	10,891	9,818	11%	0%	11%	7%	4%	0%
Fresenius Kabi	7,193	6,976	3%	-1%	4%	4%	0%	0%
Fresenius Medical Care	17,619	17,859	-1%	-3%	2%	1%	1%	0%
€m	FY/21	FY/20	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others

42

Fresenius Group: Solid Balance Sheet Structure

• Healthy Equity and Liability Split
• Strong equity ratio of >40% on average
• Equity ratio kept in narrow range despite rapid growth of Fresenius Group

Financial Calendar / Contact

Financial Calendar Contact

04 May 2022	Results Q1/22
13 May 2022	Annual General Meeting
02 August 2022	Results Q2/22
01 November 2022	Results Q3/22

Investor Relations & Sustainability Fresenius SE & Co. KGaA phone: +49 6172 608-2485 e-mail: ir-fre@fresenius.com

For further information and current news: www.fresenius.com

www.twitter.com/fresenius\_ir

www.linkedin.com/company/fresenius-investor-relations

Please note that these dates could be subject to change.