Fresenius SE & Co. KGaA

Investor Presentation • Feb 23, 2021

Conference Call │ FY/20 Results

Bad Homburg, 23 February 2021

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

Key Messages

Successful despite unprecedented challenges: FY/20 Guidance achieved

28th consecutive dividend increase proposed

Accelerated COVID-19 related excess mortality of dialysis patients

Expected recovery of elective treatments drives organic growth

2020 2021 Mid-term

Group-wide cost-efficiency program to be initiated

Growth to accelerate: Medium-term growth targets confirmed

Ongoing recovery in Europe and Emerging Markets to drive solid top-line growth

FY/21 expected to be marked by COVID-19 with projected recovery in H2/21

Agenda

Strong track record of organic sales growth

Strategic Roadmap

¹ Plus ~1% small to mid-sized acquisitions

Cost-efficiency program to be initiated

• Streamlining activities in organizational structures and facilities/real estate and other synergy fields

• Efficiency improvements globally and identification of other savings in indirect spend

• Review of cost structures particularly in markets with significant price pressure

• Review of non-medical support processes and structures

• Strategic alignment of clinic portfolio in Germany

• Optimization of global subsidiary structure

• Review of assets and shareholdings portfolio

• Implementation of new ways of working for corporate headquarters

• Groupwide review of IT operating model Corporate

Savings of at least €100 m p.a. after tax and minorities planned in 2023

8

Biosimilars gaining traction and will significantly accelerate growth

Environment, Social and Governance Setting the right priorities in a COVID-19 world

"Better medicine for more people"

Ensuring access to medicine

Protecting our employees

Alignment with SDGs published on website

ESG priorities confirmed Sustainability progress in 2020 Corporate governance update

Rating improvements across the board, Highlights: CDP Climate from "C" to "B", MSCI from "BB" to "BBB"

Restructured, GRI-aligned sustainability report to be released in March 2021

Strategy and KPI alignment program to be continued in 2021, driven by Group Sustainability Board

New Management Board remuneration system to be presented at AGM, includes ESG component

Supervisory Board elections on AGM agenda

Meet the Management – Conference Call Series

Agenda

Q4/20 Profit and Loss Statement

Sales	EBIT
+5%	+2%
Q4/20: €9,304 m	Q4/20: €1,251 m	Net Income
Income Tax Rate	Net Interest	+2%
24.1%	-€159 m	Q4/20: €494 m
Q4/19: 23.8%	Q4/19: -€182 m

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

Q4/20 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.

Cash Flow

	Operating CF		Capex (net)		Free Cash Flow1
€m	Q4/2020	LTM Margin	Q4/2020	LTM Margin	Q4/2020	LTM Margin
	584	23.7%	-300	-5.8%	284	17.9%
	307	16.4%	-197	-9.9%	110	6.5%
	434	11.7%	-285	-5.5%	149	6.2%
	74	3.8%	-13	-3.7%	61	0.1%
Corporate/Other	-9	n.a.	-5	n.a.	-14	n.a.
Excl. FMC ²	806	13.1%	-500	-7.2%	306	5.9%
	1,390	18.1%	-800	-6.6%	590	11.5%

¹ Before acquisitions and dividends

² Including FMC dividends

Agenda

COVID-19 Assumptions for Guidance FY/21

Current burdens and constraints caused by COVID-19 expected only to begin to recede in H2/21

The guidance does not reflect impacts from potential containment measures without appropriate compensation for the health care sector

Continuously advancing vaccination program in the company's relevant markets

For H2/21, we expect a significant improvement primarily in elective treatments due to continuously increasing level of vaccination coverage

FY/21 Financial Outlook by Business Segment

€m (except	otherwise stated)		FY/20 Base	FY/20	FY/21e
		Sales growth (org)	6,976	4%	Low-to-mid single-digit %
		EBIT growth (cc)	1,095	-6%	Stable to low single-digit %
		Sales growth (org)	9,818	4%	Low-to-mid single-digit %
	EBIT growth (cc)	1,025	0%	Mid-to-high single-digit %
		Sales growth (org)	2,068	-8%	Mid-to-high single-digit %
		EBIT growth (cc)	29	-79%	High double digit €m

Before special items and including estimated 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/21 Financial Guidance

€m (except otherwise stated)		FY/20 Base	FY/20	FY/21
	Sales growth (cc)	36,277	5%	Low-to-mid single-digit %
	Net income growth (cc)	1,796	-3%	At least broadly stable

Before special items and including estimated 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.

Attachments

Fresenius Group: Easing COVID-19 impact whilst regaining business momentum

	Main drivers for FY/21	Expected COVID effects
	Higher mortality rate amongst dialysis patients	Significant
	Elective treatments in China already from Q1/21 onwards almost at pre-COVID levels; Recovery in NAM expected in H2/21; Headwinds in H1/21 partially compensated by higher demand for COVID-related products	Moderate Moderate Slight impact	Slight impact
	Whilst H1/21 is expected to be marked by a lack of elective treatments, significant improvement are expected in H2/21 due to continuous vaccination of population.	Significant Significant Slight impact	Slight impact
	Improved demand for post-acute care services due to recovery of elective treatments in H2/21 Project business expected to be impacted by travel restrictions in H1/21, gradual recovery in H2/21	Significant Significant Moderate	Slight impact
	H1/21 is expected to be significantly negative impacted by COVID-19; for H2/21 an improvement primarily in elective treatments is expected	Significant Significant Moderate	Slight impact
These assumptions are subject to considerable uncertainty.		Q1 Q2 Q3	Q4

Fresenius Kabi: Headwinds in the US expected to continue, whilst Europe is projected for a gradual recovery and China is anticipated to be back to healthy growth

H1/21 expected to still see fewer elective treatments and competitive pressure

Melrose Park:

• All manufacturing sites are fully operational
• No product launches from this plant in FY/21 expected

15+ product launches planned in FY/21

Ongoing recovery of elective treatments expected alongside increasing vaccination coverage of population

Ongoing roll-out and ramp-up of biosimilars business contributes to organic sales growth

North America Europe Emerging Markets

China expected to leave COVID-19 effects behind; more pricing pressure due to tender system combined with dynamic volume growth expected to lead to healthy organic growth in FY/21

Launch of new formulations and applications in the field of parenteral and enteral nutrition in China

Further roll-out of IV drug portfolio in China

Fresenius Kabi: Building the platform for decisive US growth through strategic initiatives to diversify and differentiate portfolio, and expand in new therapies and channels

Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Regions

€m	Q4/20	Δ YoY organic	FY/20	Δ YoY organic
North America	549	-3%	2,376	0%
Europe	680	9%	2,458	6%
Emerging Markets	586	15%	2,142	6%
Total sales	1,815	7%	6,976	4%

Fresenius Kabi: Q4 & FY/20 Organic Sales Growth by Product Segment

€m	Q4/20	Δ YoY organic	FY/20	Δ YoY organic
IV Drugs	697	1%	2,921	3%
Infusion Therapy	242	3%	810	-3%
Clinical Nutrition	528	15%	1,945	7%
Medical Devices/ Transfusion Technology	348	10%	1,300	7%
Total sales	1,815	7%	6,976	4%

Fresenius Kabi: Q4 & FY/20 EBIT Growth

€m	Q4/20	Δ YoY cc	FY/20	Δ YoY cc
North America Margin	125 22.8%	-33% -1,100 bps	785 33.0%	-12% -450 bps
Europe	85	-1%	355	+9%
Margin	12.5%	-210 bps	14.4%	+20 bps
Emerging Markets	153	+29%	471	+5%
Margin	26.1%	+330 bps	22.0%	+10 bps
Corporate and Corporate R&D	-127	2%	-516	-4%
Total EBIT	236	-10%	1,095	-6%
Margin	13.0%	-310 bps	15.7%	-170 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: Interlinked business model with leading market position offers a strong foundation to leverage network efficiencies and accelerate growth opportunities

From prevention to intervention

Serving patients for all healthrelated demands

Reach patients at all levels of care: Prevention, Occupational medicine, MVZ, Hospitals

Demand for ORP services in Spain accelerated due to COVID-19

Increase digital connect with patients:

• Patient portals
• Video consultations
• Curalie with digital features for chronically ill

Stable reimbursement (2021 DRG inflator set at 2.53%)

Cost pressure from the regulator to be partially mitigated

Efficiency gains from increasing digitalization of clinical processes

Fields of innovation Regulatory environment Opportunities for growth

Greenfield & expansion projects Focus on new set-up of MVZs Expand fertility services offering Selective acquisitions

Fresenius Helios: Acquisition of Eugin Group makes Fresenius Helios a leading international provider of fertility services with significant growth opportunities

Acquisition adds global network of fertility clinics

Acquisition complements existing Fresenius Helios footprints in Germany, Spain and LatAm

Global fertility market offers significant growth opportunities and consolidation potential

Accretive to Group net income from FY/21 onwards

Strong presence in Europe, LatAm, and U.S.

Valuation1 of €430m corresponds to ~11.4x at the mid-point of the Largest markets: U.S., Spain, Brazil, Italy and Sweden

¹ Including approx. €80 million of minority interests and assumed debt

2019 2021e

€m €35 to €40 million

0

10

20

30

40

EBITDA

€31 million

2021 EBITDA range.

Fresenius Helios: COVID-19 Update

Fresenius Helios: Q4 & FY/20 Key Financials

€m	Q4/20	Δ YoY cc	FY/20	Δ YoY cc
Total sales	2,637	9%1	9,818	4%1
Thereof Helios Germany	1,637	8%1	6,340	6%1
Thereof Helios Spain	999	11%1	3,475	2%1
Total EBIT Margin	328 12.4%	13% -10 bps	1,025 10.4%	0% -70 bps
Thereof Helios Germany Margin	157 9.6%	10% -10 bps	602 9.5%	4% -20 bps
Thereof Helios Spain Margin	159 15.9%	19% 20 bps	420 12.1%	-5% -140 bps
Thereof Corporate	12	--	3	--

¹ Organic growth

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/20	FY/19	Δ
No. of hospitals Germany - Acute care hospitals	89 86	86 83	3% 4%
No. of hospitals Spain (Hospitals)	52	50	4%
No. of beds Germany - Acute care hospitals	29,978 29,451	28,907 28,380	4% 4%
No. of beds Spain (Hospitals)	7,936	7,288	9%
Admissions Germany (acute care)	1,044,959	1,206,654
Admissions Spain (including outpatients)	15,037,804	15,396,051

Fresenius Vamed: Gradual recovery of business ahead; good order intakes despite COVID-19

COVID-19 headwinds to ease in the course of 2021

Easing of travel restrictions expected for H2/21

Lack of electives treatments – expected to recover in H2/21

Reduced capacity at post-acute care to last over H1/21

Technical services business to remain robust

Recovery of project business in Q4/20 – solid order book

Order intake in Q4/20 13% above prior year; overall order intake in FY/20 decreased by 23% versus prior year

Major turnkey contract in Q4/20:

• Severodonetsk General Hospital in Ukraine

Fresenius Vamed: Q4 & FY/20 Key Financials

€m	Q4/20	Δ YoY cc	FY/20	Δ YoY cc
Total sales Thereof organic sales	577	-22% -22%	2,068	-6% -8%
Service business	372	-1%	1,435	3%
Project business	205	-44%	633	-22%
Total EBIT	39	-42%	29	-79%
Order intake1	648	13%	1,010	-23%
Order backlog1			3,055	7%2

¹ Project business only ² Versus December 31, 2019

Fresenius Group: Q4/20 Key Financials

€m	Q4/201	special items	Q4/20 reported	YoY cc1 Δ
Sales	9,304	-	9,304	5%
EBIT	1,251	-227	1,024	2%
Net interest	-159	3	-156	9%
Income taxes	-263	8	-255	-8%
Net income2	494	-84	410	2%

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

€m	FY/20	FY/19
Earnings before tax and noncontrolling interests	3,958	3,974
Taxes	-914	-925
Noncontrolling interests, thereof	-1,248	-1,170
Fresenius Medical Care net income not attributable to Fresenius (Q4/20: ~68%)	-922	-849
Noncontrolling interest holders in Fresenius Medical Care	-271	-239
Noncontrolling interest holders in Fresenius Kabi (-€44 m), Fresenius Helios (-€8 m), Fresenius Vamed (-€3 m)	-55	-82
Net income attributable to Fresenius SE & Co. KGaA	1,796	1,879

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	Q4/20	LTM Margin	Δ YoY
Operating Cash Flow	1,390	18.1%	8%
Capex (net)	-800	-6.6%	5%
Free Cash Flow	590	11.5%	33%
(before acquisitions and dividends)
Acquisitions (net)	-202
Dividends	-59
Free Cash Flow (after acquisitions and dividends)	329	6.8%	--

	as	Growth cc reported incl. COVID-19	Estimated COVID-19 impact cc
	Q4/201	FY/201	Q4/201	FY/201
Sales	+5%	+5%	-2% to -3%	-2% to -3%
Net income2	+2%	-3%	-1% to -5%	-5% to -9%

¹ Before special items

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

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 Well-balanced Maturity Profile

¹ As of December 31, 2020 and based on utilization of major financing instruments, excl. Commercial Paper of EUR 50m

Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q4/20

€m	Q4/20	Q4/19	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others
Fresenius Medical Care	4,400	4,580	-4%	-8%	4%	1%	3%	0%
Fresenius Kabi	1,815	1,766	3%	-5%	8%	7%	0%	1%
Fresenius Helios	2,637	2,344	13%	0%	13%	9%	4%	0%
Fresenius Vamed	577	737	-22%	0%	-22%	-22%	0%	0%
Total	9,304	9,311	0%	-5%	5%	2%	3%	0%

Sales by Business Segment – FX, Acquisitions/Divestitures Effects FY/20

€m	FY/20	FY/19	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others
Fresenius Medical Care	17,859	17,477	2%	-3%	5%	3%	3%	-1%
Fresenius Kabi	6,976	6,919	1%	-3%	4%	4%	0%	0%
Fresenius Helios	9,818	9,234	6%	-1%	7%	4%	3%	0%
Fresenius Vamed	2,068	2,206	-6%	0%	-6%	-8%	2%	0%
Total	36,277	35,409	2%	-3%	5%	3%	2%	0%

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

06 May 2021	Results Q1/21
21 May 2021	Annual General Meeting
30 July 2021	Results Q2/21
02 November 2021	Results Q3/21

Please note that these dates could be subject to change.

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

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