Fresenius SE & Co. KGaA

Investor Presentation • Jun 9, 2020

Goldman Sachs 41st Annual Global Healthcare Conference Webcast

09-10 June 2020

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.

Figures for 2020 and 2019 according to IFRS 16 (except otherwise stated).

A Global Leader in Health Care Products and Services

Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets

Fresenius Group: Strong Track Record of Organic Sales Growth in All Business Segments

Strong and Balanced Health Care Portfolio

Fresenius Medical Care: Global Dialysis Market Leader

• The world's leading provider of dialysis products and services treating ~ 349,000 patients1 in ~ 4,000 clinics1
• Provide highest standard of product quality and patient care

Dialysis products

Dialysis services

• Expansion in Care Coordination and global dialysis service opportunities; enter new geographies

Market Dynamics

Global Dialysis Market 2019:

• ~€80 bn
• ~6% patient growth p.a.

Growth Drivers:

• Aging population, increasing incidence of diabetes and high blood pressure, treatment quality improvements

¹ As of March 31, 2020

Fresenius Kabi: A Leading Global Hospital Supplier

• Comprehensive product portfolio for critically and chronically ill patients
• Strong Emerging Markets presence
• Leading market positions

• Focus on organic growth through geographic product rollouts and new product launches
• Development of biosimilars with a focus on oncology and autoimmune diseases

Market Dynamics

Global Addressable Market 2019:

• ~€97 bn

Growth Drivers:

• Patent expirations, rising demand for health care services, higher health care spending in Emerging Markets

Fresenius Helios: Europe's Largest Private Hospital Operator

• Market leader in size and quality with excellent growth prospects
• ~5%1 share in German acute care hospital ~12%1 share in Spanish private hospital market
• Quality is key: defined quality targets, publication of medical treatment results, peer review processes
• Broad revenue base with public and privately insured patients, PPPs, self-pay and Occupational Risk Prevention

Market Dynamics

Hospital Market Size:

• ~€102 bn2 German Acute Care Hospital Market
• ~€15 bn3 Spanish Private Hospital Market

Growth Drivers:

• Aging population, greenfield projects in Spain, potential market consolidation in Germany and Spain

¹ Based on sales

• ² German Federal Statistical Office 2018; total costs, gross of the German hospitals less academic research and teaching
• ³ Market data based on company research. Market definition does neither include Public Private Partnerships (PPP) nor Occupational Risk Prevention centers (ORP)

Acute Care

Outpatient

• Development of new business models to foster digitalization and profit from trend towards outpatient treatments

Fresenius Vamed: Leading Global Hospital Projects and Services Specialist

• Manages hospital construction/expansion projects and provides services for health care facilities worldwide
• Offers project development, planning, turnkey construction, maintenance as well as technical management, and total operational management
• Strong track record: More than 900 projects in over 90 countries completed
• Leading European post-acute care provider operating in five European countries

Market Dynamics

Growth Drivers:

• Emerging Market demand for building and developing hospital infrastructure
• Outsourcing of non-medical services from public to private operators

Global Trends offer Growth Opportunities for Fresenius

Increasing national income Chronically ill patients

Aging Population Growing healthcare sector

Significant savings for healthcare systems

Sources: ¹ UN, 2019 Revision of World Population Prospects (2019) 2 UBS, Longer Term Investments: EM healthcare (2018) 3 IMF (2019) 4 IDF Diabetes Atlas (2017) 5 AAM report (2019) 6 UBS, Longer Term Investments: Generics (2018)

Fresenius Group: Growth Areas

Fresenius Group: Medium-term Growth Targets 2020 – 2023 (CAGRs)

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

Before special items

The Fresenius Strategy

Our ESG Priorities: Patients, Employees and Compliance

ESG Rating Overview: Continuous Improvement through Reporting and Engagement

Current Score	CDP Climate: C CDP Water: C	Prime C	BB	39/100 DJSI Europe	55/100
Sector Average	CDP Climate: B-	C-	BBB - A	28 / 100	47 – 63/ 100
Previous Score	CDP Climate: D CDP Water: D-	Prime C	BB	33/100	48 /100
Next steps:	• Improve management-level responsibility over ESG-related issues, i.e. implement further emissions reduction and efficiency projects and related targets Intensify dialogue with rating agencies •

Sustainability/ESG: Decisive Steps for 2020

Our Priorities

• "Better medicine for more people"
• Patients: Quality of products and services
• People: Being an attractive employer
• Compliance: Doing the right thing

Sustainability Governance

• CEO sponsors Group sustainability efforts
• New Group Sustainability Board in 2020
• Strategy and KPI alignment program started in 2019, will continue in 2020

Remuneration

• Remuneration proposal planned for AGM 2021
• Based on new German legal framework and German Corporate Governance Code
• Will include ESG performance indicators

Fresenius Group: Capital Deployment Focuses on Sustainable Value Creation

Fresenius Group: Proven Track Record of Deleveraging

Net Debt/EBITDA1

¹ At actual FX rates from 2001 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 2001-2018/19 excluding IFRS 16

⁴ Including IFRS 16

Fresenius SE: Earnings-Linked Dividend Policy

0.02 0.23 0.25 0.29 0.32 0.37 0.42 0.44 0.55 0.62 93 08 09 10 11 12 13 14 15 16 17 18 19 25% 24% 21% 20% 21% 21% 22% 21% 22% 23% 24% € per share • Dividend growth aligned to EPS1 growth • Pay-out Ratio: 20% to 25% Dividend distribution (€m) Pay-out Ratio 0.75 2019 Pay-out Ratio: 24% Dividend Policy 114 122 140 155 196 225 238 300 343 416 445 0.80 ¹ Before special items 468 0.84 24% Track record • 27th consecutive dividend increase • CAGR dividend increase +15%

2019 proposal

Total Shareholder Return – CAGR, Rounded

Source: Bloomberg; dividends reinvested, as of Dec 31, 2019

Review Q1/20

Current status of Fresenius Group under COVID-19

• Further enhanced safety measures to protect patients and staff
• Decisive efforts to combat pandemic in our hospitals
• Immediate focus on essential drugs & devices for COVID-19 patients
• Commitment to price stability during pandemic
• Solid start into 2020
• Varying phasing, direction and magnitude of COVID-19 effects across business segments
• Too early to quantify the total financial impact for FY/20
• 2020 guidance (excluding COVID-19 effects) maintained
• Part of critical infrastructure
• Healthy diversification
• High degree of vertical integration
• Sustainable access to financial markets liquidity and capital

Fresenius Kabi: Headwinds in China for most of Q1, COVID-19 related extra demand elsewhere from late in Q1

Fresenius Kabi: Excellent crisis management ensures continued operations in our global plants

• Manufacturing at all plants has been ongoing despite the COVID-19 pandemic
• In particular the API plants continued uninterrupted operations
• Outstanding employee engagement to maintain the production of our vital products
• Early and proactive implementation of contingency measures to safeguard production:

피

Secured stocks of raw material

L

Expanded logistics capacities

Immediate implementation of additional hygiene measures

Organization of temporary accommodation opportunities close to the plants

Early collaboration with authorities to ensure continued operations

API - Active Pharmaceutical Ingredients

Fresenius Helios: Very different dynamics of the COVID-19 pandemic in Germany and Spain

Notes: Figures for Helios Spain include high-likelihood suspected COVID-19 inpatient cases under investigation. On a cumulative basis, Helios Spain treated about 15,000 COVID-19 inpatients, of which about 1,400 (9%) were treated in ICU. The daily ICU percentages in the above chart are higher due to longer avg. length-of-stay of COVID-19 patients in ICUs.

Helios Germany: Law to ease financial burden on hospitals likely to offset large part of sales losses and cost increases

Helios Spain: Significant contribution to combat COVID-19; some uncertainties with regards to reimbursement remain

Fresenius Vamed: Postponements/cancellations of orders in project business, restraints in service business due to COVID-19

	Q1/20: Status quo	Remainder of	FY/20: Unpredictable development
Project business	Good organic growth	Delays and cancellations of project orders	Opportunity for catch-up effects
		Execution delays/projects on hold due to travel/quarantine restrictions and supply chain restraints	Opportunity for catch-up effects
		SG&A savings
Service business	Good organic growth	Less demand for post-acute (rehabilitation) treatments given mandated postponement of elective surgeries	Partial reimbursement
Operational management		Health authority induced closures of selected post-acute (rehabilitation) facilities	expected for post-acute (rehabilitation) facilities in Austria, Switzerland and the
		German decree to ease financial burden on post acute (rehabilitation) facilities offsets part of sales losses/cost impacts	Czech Republic
		Health authority induced closure of all medical wellness resorts
		Incremental expenses for protective equipment and medical supplies
Technical services	Good organic growth	Technical maintenance not meaningfully impacted
		Less demand for instrument sterilization given mandated postponement of elective surgeries	Opportunity for catch-up effects
	Jan Feb	March Q2/20	H2/20

Fresenius Group: Q1/20 Profit and Loss Statement

Sales	EBIT
+7%	-2%
Q1/20: €9,135 m	Q1/20: €1,125 m	Net Income
Income Tax Rate	Net Interest	+1%
22.6%	-€174 m	Q1/20: €465 m
Q1/19: 23.3%	Q1/19: -€181 m

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

Fresenius Group: Q1/20 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.

Fresenius Group: Significant investments into future growth

CapEx ratio (Capex / sales)

• Historical range 5% to 6%
• 2018 and 2019 marked by group-wide significant investments into future growth
• Certain flexibility with regard to planned investments for 2020, pending on magnitude of COVID-19 impact
• Return to historical range within the next years

Increased supply of essential drugs

during COVID-19 pandemic

• Future-oriented investments into both automation and capacity are now enabling treatment for more patients worldwide

Hospitals well-prepared to cope with COVID-19 pandemic

• Well invested and equipped infrastructure with well-trained nurses
• Optimized processes and workflows

CapEx, gross € in millions

Fresenius Group: Cash Flow

	Operating CF		Capex (net)		Free Cash Flow1
€m	Q1/2020	LTM Margin	Q1/2020	LTM Margin	Q1/2020	LTM Margin
	584	17.2%	-280	-6.7%	304	10.5%
	174	15.1%	-178	-10.8%	-4	4.3%
	145	8.3%	-89	-5.1%	56	3.2%
	-20	-1.0%	-22	-3.0%	-42	-4.0%
Corporate/Other	-5	n.a.	-4	n.a.	-9	n.a.
Excl. FMC	294	10.3%2	-293	-7.4%	1	2.9%2
	878	13.5%	-573	-7.1%	305	6.4%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend [€110 million]

Financial Review FY/19

Fresenius Group: FY/19 Profit and Loss Statement

Sales	EBIT
+6%	-2%
FY/19: €33,524 m	FY/19: €4,599 m	Net Income
Income Tax Rate 23.4%	Net Interest -€510 m	+0% FY/19: €1,915 m
FY/18: 22.1%	FY/18: -€549 m

All growth rates in constant currency (cc) Before special items, adjusted for IFRS 16 effect On a comparable basis: FY/18 adjusted for divestitures of Care Coordination activities at FMC, before special items Net income attributable to shareholders of Fresenius SE & Co. KGaA

Fresenius Kabi: Organic Sales Growth by Product Segment

Total sales	1,766	4%	6,919	4%
Medical Devices/ Transfusion Technology	334	10%	1,248	11%
Clinical Nutrition	482	8%	1,898	9%
Infusion Therapy	213	2%	834	3%
IV Drugs	737	-1%	2,939	-1%
€m	Q4/19	Δ YoY organic	FY/19	Δ YoY organic

Fresenius Kabi: Organic Sales Growth by Regions

€m	Q4/19	Δ YoY organic	FY/19	Δ YoY organic
North America	609	-1%	2,424	-2%
Europe	604	2%	2,313	2%
Emerging Markets	553	12%	2,182	14%
Total sales	1,766	4%	6,919	4%

Fresenius Kabi: Q4 & FY/19 EBIT Growth

€m	Q4/19	Δ YoY cc	FY/19	Δ YoY cc
North America	204	-8%	907	-3%
Margin	33.5%	-260 bps	37.4%	-50 bps
Europe	87	-10%	328	-7%
Margin	14.4%	-200 bps	14.2%	-160 bps
Emerging Markets	124	7%	476	19%
Margin	22.4%	-90 bps	21.8%	130 bps
Corporate and Corporate R&D	-132	11%	-511	2%
Total EBIT	283	-1%	1,200	3%
Margin	16.0%	-90 bps	17.3%	-10 bps

On a comparable basis: before special items and adjusted for IFRS 16 effects

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/19 Key Financials

€m	Q4/19	Δ YoY	FY/19	Δ YoY
Total sales	2,344	4%1	9,234	5%1
Thereof Helios Germany	1,475	3%1	5,940	3%1
Thereof Helios Spain	867	7%1	3,292	7%1
Total EBIT3 Margin	292 12.5%	5% 10 bps	1,015 11.0%	-4%/-3%2 -70 bps
Thereof Helios Germany Margin	143 9.7%	4% 20 bps	576 9.7%	-8%/-6%2 -80 bps
Thereof Helios Spain Margin	134 15.5%	6% -50 bps	434 13.2%	5% -50 bps
Thereof Corporate	15	--	5	--

¹ Organic growth

² Adjusted for the post-acute care business transferred to Fresenius Vamed as of July 1, 2018

³ Adjusted for IFRS 16 effect

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 Measures

	FY/19	FY/18	Δ
No. of hospitals Germany - Acute care hospitals	86 83	86 83	0% 0%
No. of hospitals Spain (Hospitals)	51	47	9%
No. of beds Germany - Acute care hospitals	28,907 28,380	29,329 28,802	-1% -1%
No. of beds Spain (Hospitals)	7,288	7,019	4%
Admissions Germany (acute care)	1,206,654	1,218,199
Admissions Spain (including outpatients)	15,396,051	13,318,066

Fresenius Vamed

• Both business segments contributed to the organic sales growth of 4% in Q4/19
• Stable service business is gaining weight (FY/19: 63% of sales; FY/09: 32%)
• Geographically well-diversified order backlog is excellent foundation for future growth

€m	Q4/19	Δ YoY	FY/19	Δ YoY
Total sales Thereof organic sales	737	6% 4%	2,206	31% 16%1
Service business	374	11%	1,399	43% 25%1
Project business	363	1%	807	13%
EBIT2 Total	66	8%	131	19% 6%1
Order intake3	576	-13%	1,314	7%
Order backlog3			2,865	18%4

¹ Without German post-acute care business acquired from Fresenius Helios as of July 1, 2018

• 2 Adjusted for IFRS 16 effect
• ³ Project business only
• ⁴ Versus December 31, 2018

Fresenius Group: FY/19 & Cash Flow

	Operating CF1		Capex (net)			Free Cash Flow1,2
€m	FY/2019	Margin	FY/2019	Margin	FY/2019	Margin
	1,947	11.1%	-1,113	-6.4%	834	4.7%
	968	14.0%	-716	-10.4%	252	3.6%
	683	7.4%	-477	-5.2%	206	2.2%4
	-46	-2.1%	-52	-2.3%	-98	-4.4%
Corporate/Other	-38	n.a.	-75	n.a.	-113	n.a.
Excl. FMC3	1,677	9.3%	-1,320	-7.3%	357	2.0%
	3,514	9.9%	-2,433	-6.9%	1,081	3.0%

¹ Adjusted for IFRS 16

² Before acquisitions and dividends

³ Incl. FMC dividend of €110 million

⁴ Understated: 2.7% excluding €45 million of capex commitments from acquisitions

Fresenius Group: Financial Results by Business Segment

			2019	20191	20182	2017	Growth3 2019/2018
		Sales	€17,477 m	€17,592 m	€16,026 m	€17,784 m	6%2
	EBIT	€2,356 m	€2,281 m	€2,292 m	€2,562 m	-4%2
	Sales	€6,919 m	€6,919 m	€6,544 m	€6,358 m	4%
		EBIT	€1,205 m	€1,200 m	€1,139 m	€1,177 m	3%
	Sales	€9,234 m	€9,234 m	€8,993 m	€8,668 m	3%
	EBIT	€1,025 m	€1,015 m	€1,052 m	€1,052 m	-4%
	Sales	€2,206 m	€2,206 m	€1,688 m	€1,228 m	30%
		EBIT	€134 m	€131 m	€110 m	€76 m	18%
		Sales	€35,409 m	€35,524 m	€33,009 m	€33,886 m	6%2
Group		EBIT	€4,688 m	€4,599 m	€4,547 m	€4,830 m	-2%2

Before special items

¹ Adjusted for IFRS 16

² On a comparable basis: 2018 adjusted for divestitures of Care Coordination activities

³ Growth rates at constant currency and adjusted for IFRS 16

Fresenius Group: Margins by Business Segment

			2019	20191	2018	2017
		EBITDA margin	22.4%	17.8%	19.2%	18.5%
		EBIT margin	13.5%	13.0%	14.3%	14.4%
		EBITDA margin	22.7%	21.7%	21.9%	23.3%
		EBIT margin	17.4%	17.3%	17.4%	18.5%
		EBITDA margin	15.6%	14.8%	15.9%	16.5%
		EBIT margin	11.1%	11.0%	11.7%	12.1%
		EBITDA margin	9.3%	7.8%	7.9%	7.1%
		EBIT margin	6.1%	5.9%	6.5%	6.2%
		EBITDA margin	20.1%	17.4%	18.3%	18.5%
	Group	EBIT margin	13.2%	12.9%	13.8%	14.3%

Before special items; 2018 adjusted for divestitures of Care Coordination activities 2017-2018 excluding IFRS 16 ¹ Adjusted for IFRS 16

Fresenius Group: FY/20 Financial Outlook by Business Segment (excluding COVID-19 effects)

€m (except	otherwise stated)		FY/19 Base1	FY/20e2
		Sales growth (org)	6,919	3% - 6%
		EBIT growth (cc)	1,205	-4% to 0%
		Sales growth (org)	9,234	3% - 6%
		EBIT growth (cc)	1,025	3% - 7%
		Sales growth (org)	2,206	4% - 7%
		EBIT growth (cc)	134	5% - 9%

¹ Before special items and including IFRS 16 effects

² 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.

Fresenius Group: FY/20 Financial Guidance (excluding COVID-19 effects)

€m (except otherwise stated)		Base1 FY/19	FY/202
	Sales growth (cc)	35,409	4% - 7%
	Net income3 growth (cc)	1,879	1% - 5%

¹ Before special items, including IFRS 16 effects, including NxStage operations 2 Before special items

³ 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.

FY/19 base for Fresenius Group Guidance FY/20

€m	Fresenius Group	Fresenius Medical Care	Fresenius Kabi
Sales reported (reported = base for guidance)	35,409	17,477	6,919
Transaction costs Akorn			3
Revaluations of biosimilars contingent purchase price liabilities			-32
EBIT (before special items = base Fresenius Kabi guidance)			1,205
Net income reported	1,883	1,200
Transaction costs Akorn	3
Revaluations of biosimilars contingent purchase price liabilities	-19
Gain related to divestitures of Care Coordination activities at FMC	-15	-49
Transaction costs NxStage	6	18
Expenses associated with cost optimization program at FMC	21	67
Net income (before special items = base Fresenius Group & FMC guidance)	1,879	1,236

Appendix

Fresenius Group: FY/19 Key Financials

€m	FY/191	IFRS 16 effect	special items	FY/19 reported	cc1,2 Δ YoY
Sales	35,524	-115	-	35,409	6%
EBIT	4,599	89	-57	4,631	-2%
Net interest	-510	-204	-5	-719	9%
Income taxes	-955	30	42	-883	-5%
Net income3	1,915	-36	4	1,883	0%
Balance sheet total	61,237	5,769	-	67,006
Operating Cashflow	3,514	749	-	4,263

¹ Before special items, adjusted for IFRS 16 effect

² On a comparable basis: 2018 adjusted for divestitures of Care Coordination activities at FMC

3 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: Cash Flow

€m	20191	Margin	2019	Margin	2018	Margin	Δ YoY 19/18
Operating Cash Flow	3,514	9.9%	4,263	12.0%	3,742	11.2%	14%
Capex (net)	-2,433	-6.9%	-2,433	-6.8%	-2,077	-6.2%	-17%
Free Cash Flow (before acquisitions and dividends)	1,081	3.0%	1,830	5.2%	1,665	5.0%	10%
Acquisitions (net)	-2,423		-2,423		613		--
Dividends	-952		-952		-904		5%
Free Cash Flow (after acquisitions and dividends)	-2,294	-6.5%	-1,545	-4.4%	1,374	4.1%	--

¹ 2019 adjusted for IFRS 16

Fresenius Group: Calculation of Noncontrolling Interest

€m	FY/19	FY/18
Earnings before tax and noncontrolling interest	4,089	3,998
Taxes	-955	-883
Noncontrolling interest, thereof	-1,219	-1,243
Fresenius Medical Care net income not attributable to Fresenius (FY/19: ~69%)	-897	-928
Noncontrolling interest holders in Fresenius Medical Care	-239	-244
Noncontrolling interest holders in Fresenius Kabi (-€49 m), Fresenius Helios (-€13 m), Fresenius Vamed (-€2 m) and due to Fresenius Vamed's 23% external ownership (-€19 m)	-83	-71
Net income attributable to Fresenius SE & Co. KGaA	1,915	1,872

On a comparable basis: Before special items; adjusted for IFRS16 effect; FY/18 adjusted for divestitures of Care Coordination activities at FMC

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

Financial Calendar / Contact

Financial Calendar

30 July	Results
2020	Q2/20
29 October	Results
2020	Q3/20

Please note that these dates could be subject to change.

Contact

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

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