Fresenius SE & Co. KGaA

Investor Presentation • Sep 24, 2019

Berenberg & Goldman Sachs 8th German Corporate Conference

Munich, 24-25 September 2019

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.

A Global Leader In HealthCare Products And Services

~€33.5 bn in Sales

(as of Dec. 31, 2018)

Strong portfolio of products (30% of sales) and services (70% of sales) Total Shareholder Return: 10-year CAGR: ~15%

Global presence in 100+ countries

288,000+ employees worldwide

(as of June 30, 2019)

Strong and Balanced Health Care Portfolio

¹ Reflects the transfer of German post-acute care business from Fresenius Helios to Fresenius Vamed as of July 1, 2018

Total Shareholder Return – CAGR, Rounded

Source: Bloomberg; dividends reinvested, as of Dec 31, 2018

Fresenius Medical Care: Global Dialysis Market Leader

• The world's leading provider of dialysis products and services treating more than 339,000 patients¹ in 3,996 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 2018:

• ~€71 bn
• ~6% patient growth p.a.

Growth Drivers:

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

¹ As of June 30, 2019

Fresenius Kabi: A Leading Global Hospital Supplier

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

Biosimilars

• 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 2018:

• ~€81 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 Helios Germany

• ~5%¹ share in German acute care hospital market
• Organic growth based on growing number of admissions and reimbursement rate increases
• Ranks as quality leader in the German hospital sector: defined quality targets, publication of medical treatment results, peer review processes
• Key medical indicators, e.g. mortality rate for heart failure, pneumonia below German average

Market Dynamics

German Acute Care Hospital Market:

• ~€102 bn²

Growth Drivers:

• Aging population leading to increasing hospital admissions

Largest network & nationwide presence

¹ Based on sales

² German Federal Statistical Office 2018; total costs, gross of the German hospitals less academic research and teaching

86 hospitals

~29,000 beds

• ~1.2 million inpatient admissions p.a.
• ~4.1 million outpatient admissions p.a.

As of June 30, 2019

Fresenius Helios: Europe's Largest Private Hospital Operator Helios Spain

• ~€3.0 bn sales in 2018
• ~12%¹ share in Spanish private hospital market
• Market leader in size and quality with excellent growth prospects
• Broad revenue base with privately insured patients, PPPs, self-pay and Occupational Risk Prevention (ORP)
• Strong management team with proven track record
• Cross-selling opportunities

Acute Care

Outpatient

Occupational Risk Prevention

¹ Based on sales

² Market data based on company research. Market definition does neither include Public Private Partnerships (PPP) nor Occupational Risk Prevention centers (ORP)

Market Dynamics

Spanish Private Hospital Market:

• ~€14 bn²

Growth Drivers:

• Aging population, increasing number of privately insured patients, greenfield projects, market consolidation

Quirónsalud hospitals in every major metropolitan region of Spain

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

Fresenius Group: Capital deployment centers on sustainable long-term value creation

Re investments in own business	Fuel organic growth with low-risk high return investments
Strategic acquisitions	Short-term focus on small bolt-on acquisitions; long-term rigorous pursuit of inorganic growth trajectory
Dividends	26 years of consecutive dividend increases; CAGR of ~16%
Share buy backs	Currently more attractive growth opportunities in operating investments

Fresenius Group: Healthy Growth Targets 2020 - 2023

Fresenius Group: Healthy Growth Targets 2020 – 2023 (CAGRs)

Organic sales growth	4 – 7% (plus ~1% small to mid size acquisitions)
Organic net income1 growth	5 – 9% (plus ~1% small to mid size acquisitions)

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

Before special items

Financial Review Q2/19

Q2/19 Highlights

• Good organic sales growth across all business segments
• Growth investments well on track
• Fresenius Kabi: first biosimilar launched; continued excellent growth in Emerging Markets
• Fresenius Helios: strong organic sales growth in Germany; acquisition of Cliníca Medellin in Colombia completed
• Fresenius Vamed: smooth integration of the post-acute care business from Helios
• Fresenius Medical Care: strategy reinforced by U.S. government's plans for changes of kidney disease care
• Group: sales growth guidance increased

Fresenius Kabi: Update

IV Generics in North America

• Conclusion of de-stocking during Q2/19
• Low single-digit price erosion in our base product portfolio
• Intensified competition in certain molecules
• Drug shortages: 36 end of Q2/19, unchanged from Q1/19; but fewer and less pronounced shortages for meaningful molecules marketed by Fresenius Kabi
• Product launches: with 7 YTD, on track to meet expectation of ~15

Fresenius Kabi: Update

Biosimilars

• Successful launch of Idacio® in Germany, UK, Hungary, NL and Portugal
• Roll-out of Idacio® in other EU countries well on track

Clinical Nutrition

• Continued dynamic growth of parenteral nutrition business
• Start of production for enteral nutrition products in China; market entry in Australia

Transfusion/Cell Therapy business

• Carve-out successfully completed
• Final phase of evaluation of strategic options

Fresenius Helios: Update

Helios Germany

Further progress of investment initiatives

• FY target to hire 1,000 additional nursing staff already accomplished in H1/19; further ramp-up planned; benign impact on 2019 P&L expected
• Most vacant chief doctor positions filled
• Clustering strategy positively reinforced by independent hospital study

New business models

• Roll-out of telemedicine platform
• Digital doctor's waiting room development together with Canadian start-up Dialogue

Handelsblatt Award

• Helios recognized as best private hospital operator in Germany

Smart.Helios

• Establishment of digital platform for rehab aftercare of chronically ill patients
• Acquisition of software provider for outpatient and rehabilitation facilities

Fresenius Helios: Update

Helios Spain

Expansion in Spain

• Seville site expansion additional 30 beds, 2 additional surgery rooms, more outpatient services; total investment of ~€20 million, expected opening early '21
• Hospital acquisition in Albacete, <€10 million sales, synergy potential with existing hospital
• Acquisition of outpatient medical center in Badalona, strengthening of our hospital network in the Barcelona area
• Opening of two new outpatient medical centers in the cities of Alicante and Bilbao
• Good progress with proton beam therapy center in Madrid

Expansion in Latin America

• Opportunistic market entry strategy progresses
• Successful entry into Colombian market

Fresenius Group: Q2/19 Key Financials

€m	Q2/191	IFRS 16 effect	special items	Q2/19 reported	Δ YoY cc1,2
Sales	8,779	-18	-	8,761	6%
EBIT	1,081	37	0	1,118	-7%
Net interest	-122	-58	1	-179	14%
Income taxes	-219	5	1	-213	9%
Net income3	480	-9	0	471	0%
Balance sheet total	59,342	5,587	-	64,929
Operating Cashflow	1,023	182	-	1,205

¹ Before special items, adjusted for IFRS 16 effect

² On a comparable basis: Q2/18 adjusted for divestitures of Care Coordination activities at FMC, before special items

³Net income attributable to shareholders of Fresenius SE & Co. KGaA

Fresenius Group: Q2/19 Business Segment Growth

¹On a comparable basis: Q2/18 adjusted for divestitures of Care Coordination activities at FMC; Q2/19 adjusted for IFRS 16 effect.

All figures before special items

Fresenius Kabi: Q2/19 Regional Highlights (1/2)

North America

• -1% organic growth
• Conclusion of de-stocking during Q2/19
• More competition for certain molecules
• Easing of shortage tailwinds fewer drug shortages for meaningful molecules
• Ongoing significant launch activity
• Acceleration of organic sales growth in H2/19 expected
• FY/19 outlook narrowed: Low single-digit organic sales growth (before: Low to mid-single-digit organic sales growth)

Europe

• 1% organic growth
• Continued strong growth of enteral nutrition business
• Product partnering business weighed on sales and EBIT development
• Confirm FY/19 outlook: Low to mid-single-digit organic sales growth

Fresenius Kabi: Q2/19 Regional Highlights (2/2)

Emerging Markets

China:

• 16% organic sales growth

Asia-Pacific ex China:

• 12% organic sales growth
• Continued positive momentum

Latin America/Africa:

• 13% organic sales growth
• Inflation-driven price increases had only negligible effect on organic growth rates

Total Emerging Markets

FY/19 outlook increased: Clearly double-digit organic sales growth (before: Likely double-digit organic sales growth)

Fresenius Kabi: Q2 & H1/19 EBIT Growth

€m	Q2/19	Δ YoY cc	H1/19	Δ YoY cc
North America	233	0%	478	2%
Margin	40.7%	60 bps	40.0%	120 bps
Europe	79	-10%	166	-4%
Margin	13.8%	-200 bps	14.5%	-100 bps
Asia-Pacific/Latin America/Africa Margin	113 20.7%	20% 120 bps	217 20.6%	19% 130 bps
Corporate and Corporate R&D	-117	2%	-250	-1%
Total EBIT1	308	4%	611	6%
Margin1	18.2%	20 bps	18.0%	60 bps

¹On a comparable basis: before special items and adjusted for IFRS 16 effects

Margin growth at actual rates

Fresenius Helios: Q2/19 Highlights

Helios Germany

• Strong organic sales growth of 5% with a good case mix
• Continued good progress with preparatory structural activities

Helios Spain

• Solid organic sales growth of 4% despite Easter being in Q2/19
• Excellent EBIT margin of 14.6% in H1/19
• Hot summer expected to weigh on EBIT growth in both Helios Spain and Germany

Fresenius Helios: Q2 & H1/19 Key Financials

€m	Q2/19	Δ YoY	H1/19	Δ YoY
Total sales	2,349	0%/6%1	4,660	0%/5%1
Thereof Helios Germany	1,506	-3%/5%1	2,991	-4%/3%1
Thereof Helios Spain	842	6%	1,668	7%
Total EBIT2 Margin	274 11.7%	-6%/-4%1 -80 bps	540 11.6%	-5%/-4%1 -60 bps
Thereof Helios Germany Margin	154 10.2%	-8%/-4%1 -70 bps	303 10.1%	-12%/-10%1 -100 bps
Thereof Helios Spain Margin	125 14.8%	1% -80 bps	244 14.6%	7% 0 bps
Thereof Corporate	-5	--	-7	--

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

² Adjusted for IFRS 16 effect

Fresenius Vamed

• Strong H1/19 with 29% organic sales growth
• Vamed accelerates high-end service provision to Helios Germany and Spain

€m	Q2/19	Δ YoY	H1/19	Δ YoY
Total sales Thereof organic sales	467	76% 27%1	907	76% 29%1
Service business	344	106% 35%1	676	109% 38%1
Project business	123	24%	231	21%
EBIT2 Total	20	67% -33%1	31	72% -17%1
Order intake3	115	-41%	498	9%
Order backlog3			2,690	11%4

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

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

Fresenius Group: Cash Flow

	Operating CF1		Capex (net)			Free Cash Flow1,2
€m	Q2/19	LTM Margin	Q2/19	LTM Margin	Q2/19	LTM Margin
	201	13.7%	-165	-9.8%	36	3.9%
	197	6.5%	-76	-4.8%	121	1.7%3
	-42	4.7%	-5	-1.7%	-47	3.0%
Corporate/Other	-33	n.a.	-16	n.a.	-49	n.a.
Excl. FMC	433	9.4%4	-262	-6.9%	171	2.5%4
	1,023	10.6%	-556	-6.6%	467	4.0%

¹ Adjusted for IFRS 16 effects

² Before acquisitions and dividends

³ Understated: 2.0% excluding €28 million of capex commitments from acquisitions

⁴Margin incl. FMC dividend

Fresenius Group: 2019 Financial Outlook by Business Segment

€m (except	otherwise	stated)	FY/18 Base	H1/19 Actual	1 FY/19e	FY/191 New
		Sales growth (org)	6,544	4%	3% - 6%
		EBIT growth (cc)	1,1392	6%	3% - 6%
		Sales growth (org)	8,993	4%	2% - 5%
		EBIT growth	1,052	-5%	-5% to -2%
		Sales growth (org)	1,688	29%	~10%
		EBIT growth	110	72%	15% - 20%

¹ Excluding transaction-related expenses, revaluations of biosimilars contingent liabilities, adjusted for IFRS 16 effects

² Before special items

Fresenius Group: 2019 Financial Guidance

€m (except otherwise stated)		FY/18 Base1	H1/19 Actual2	FY/19e2	FY/19e2 New
	Sales growth (cc)	33,009	6%	3% - 6%	4% - 7%
	Net income3 growth (cc)	1,872	0%	~0%

¹ Before special items and after adjustments

² Excluding transaction-related expenses, revaluations of biosimilars contingent liabilities, gain related to divestitures of care coordination activities, expenses associated with the cost optimization program at FMC, including operating results of NxStage, adjusted for IFRS 16 effects

³ Net income attributable to shareholders of Fresenius SE & Co.KGaA

Attachments

Fresenius Group: Leverage Ratio

Before special items; pro forma closed acquisitions/divestitures At LTM average FX rates for both EBITDA and net debt

¹ Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

² Including acquisition of NxStage; adjusted for IFRS 16 effects

³ Calculated at expected annual average exchange rates, for both net debt and EBITDA; including acquisition of NxStage; without potential unannounced acquisitions; adjusted for IFRS 16 effects (comparable to updated guidance from May 2, 2019)

Fresenius Kabi: Organic Sales Growth by Regions

€m	Q2/19	Δ YoY organic	H1/19	Δ YoY organic
North America	573	-1%	1,196	-1%
Europe	572	1%	1,145	2%
Asia-Pacific/Latin America/Africa	546	14%	1,051	14%
Asia-Pacific	374	15%	715	13%
Latin America/Africa	172	13%	336	15%
Total sales	1,691	4%	3,392	4%

Fresenius Kabi: Organic Sales Growth by Product Segment

Total sales	1,691	4%	3,392	4%
Medical Devices/ Transfusion Technology	303	7%	599	9%
Clinical Nutrition	471	11%	924	9%
Infusion Therapy	206	-1%	413	2%
IV Drugs	711	1%	1,456	0%
€m	Q2/19	Δ YoY organic	H1/19	Δ YoY organic

	H1/19	FY/18	Δ
No. of hospitals Helios Germany - Acute care hospitals	86 83	86 83	0% 0%
No. of hospitals Helios Spain (Hospitals)	50	47	6%
No. of beds Helios Germany - Acute care hospitals	29,356 28,829	29,329 28,802	0% 0%
No. of beds Helios Spain (Hospitals)	7,126	7,019	2%
Admissions Helios Germany (acute care)	610,925	1,218,199
Admissions Helios Spain (including outpatients)	7,328,513	13,318,066

Attachments

FY/18 base for Fresenius Group Guidance FY/19

Sales reported	33,530
Divestitures of Care Coordination activities at FMC (H1/18)	-521
Sales basis for growth rates	33,009
Net income reported	2,027
Transaction Costs, Akorn, Biosimilars	25
Bridge Financing Costs Akorn	12
Revaluations of Biosimilars contingent liabililties	5
Impact of FCPA related charge	9
Gain related to divestitures of Care Coordination activities	-207
Net income (before special items)	1,871
Divestitures of Care Coordination activities at FMC (H1/18)	1
Net income basis for growth rates (before special items and after adjustments)	1,872

€m

FY/18 base for Fresenius Medical Care Outlook FY/19

Sales reported	16,547
Divestitures of Care Coordination activities at FMC (H1/18)	-521
Sales basis for growth rates	16,026
Net income reported	1,982
Impact of FCPA related charge	28
Gain related to divestitures of Care Coordination activities	-673
Net income (before special items)	1,337
Divestitures of Care Coordination activities at FMC (H1/18)	4
Net income basis for growth rates (before special items and after adjustments)	1,341

€m

FY/18 base for Fresenius Kabi Outlook FY/19

€m
Sales basis for growth rates	6,544
Transaction Costs Akorn, Biosimilars	34
Revaluations of Biosimilars contingent liabililties	7
EBIT (before special items = base for Kabi guidance)	1,139

The special items are reported in the Group Corporate/Other segment.

IFRS 16: Profit and Loss - Implications

€m	Expected IFRS 16 effect on 2019
Sales		- ~€0.1 bn (discontinuation of sale-leaseback transactions at FMC NA)
EBITDA		+ ~€1.0 bn (fewer rent expenses)
Depreciation and amortization		- ~€0.9 bn (additional depreciation)
EBIT		+ ~€0.1 bn
Interest		- ~€0.2 bn (additional interest)
Net Income		- ~€30 m

Rent-expenses will be replaced by depreciation and interest-expenses :

• Increase of EBITDA and EBIT
• Neutral or slightly negative impact on EAT (depending on life-phase of contracts because of higher interests in the first years of contract)

IFRS 16: Balance Sheet

€m	Expected IFRS 16 effect on 2019
Right-of-use-asset	~€5.2 bn
Lease liability	~€5.5 bn
Equity	~-€0.3 bn
Leverage	+ ~30-40 bps

Leases have to be recognized as a right-of-use-asset and corresponding liability

Fresenius Group: 26th Consecutive Dividend Increase

Dividend growth aligned to EPS growth Pay-out ratio: 24%

Financial Calendar / Contact

Financial Calendar

29 October 2019 Results Q3/19

Please note that these dates could be subject to change.

Contact

Investor Relations 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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