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Fresenius SE & Co. KGaA

Investor Presentation • May 15, 2017

166_ip_2017-05-15_0a7f2d48-a4c5-4778-9998-0bb247fe04ac.pdf

Investor Presentation

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A Leading Global Health Care Group

Bayerische Landesbank - Fixed Income Conference May 15, 2017 – München

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.

If not stated otherwise, all financials are based on U.S. GAAP until end of 2016. Q1/2017 financials and Q1/2017 LTM figures are based on IFRS.

Agenda

  • 1 Company Overview
  • 2 Business Segments
  • Fresenius Medical Care
  • Fresenius Kabi
  • Fresenius Helios
  • Fresenius Vamed
  • 3 Financial Overview
  • 4 Financing Facilities and Debt Structure
  • 5 Acquisition of Akorn, Inc. & Merck KGaA's Biosimilars Business
  • 6 Summary and Outlook

Company Overview

Fresenius Group: A Global Leader in Health Care Products and Services

1 – LTM March 31, 2017, 2 – Incl. attributable to non-controlling interest

Fresenius Group: Strong and Balanced Health Care Portfolio

1 – LTM March 31, 2017

  • 2 Based on market capitalization of FSE as of May 03, 2017
  • 3 Based on consolidated market capitalization of FSE and FME as of May 03, 2017 and consolidated net debt as of March 31, 2017
  • 4 Held by Fresenius ProServe GmbH, a wholly owned subsidiary of FSE
  • 5 Based on market capitalization of FME as of May 03, 2017

Fresenius Group: Strong Financial Results1

1 – All data according to U.S. GAAP

2 – Before special items

3 – Incl. attributable to non-controlling interest

4 – 2011 sales were adjusted by -€161 m according to a U.S. GAAP accounting change. This solely relates to Fresenius Medical Care North America

Fresenius Group: Sustainable Organic Sales Growth

Fresenius Group:

Sustainable Organic Sales Growth in all Business Segments

1 – Due to project delays in Russia and Ukraine

Fresenius Group: Key Financial Results Q1/2017

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

Business Segments

Fresenius Medical Care: Global Dialysis Market Leader

  • • The world's leading provider of dialysis products and services treating 310,473 patients in 3,654 clinics1 Global Dialysis Market 2016:
  • • Provide highest standard of product quality and patient care

Dialysis products

Dialysis services

Complete therapy offerings

Market Dynamics

  • •~\$76 billion
  • •~6% global patient growth p.a.

Growth Drivers:

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

1 – As of March 31, 2017 2 – LTM March 31, 2017

Fresenius Medical Care: Leading in all Regions1

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1 – Company data and internal estimates, as of December, 31 2016

2 – Company data and internal estimates, as of September, 30 2016

Fresenius Medical Care: Key Figures 20161

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1 – All data according to U.S. GAAP

  • 2 7% organic growth, 1% acquisitions, -1% currency effects
  • 3 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
  • 4 +16% adjusted by settlement costs for an agreement in principle related to GranuFlo in 2015 and acquisitions effects

Fresenius Medical Care: Key Figures Q1/2017

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1 –8% organic growth, 4% acquisitions & the agreement with the US Departments of Veterans Affairs and Justice at FMC North America, 4% currency effects

2 – Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

3 – 41% net income growth in constant currency, 14% in constant currency excluding the VA-agreement

Fresenius Kabi: A Worldwide Leading Hospital Supplier

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

Growth Drivers:

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

Sales by Region

1 – LTM March 31, 2017

Fresenius Kabi: Strong Growth Track Record & High Profitability1

1 – All data according to U.S. GAAP

2 – Before special items

Fresenius Kabi:Key Figures 20161

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1 – All data according to U.S. GAAP

2 – 5% organic growth, -1% divestitures, -3% currency effects

3 – Net income attributable to shareholders of Fresenius Kabi AG

4 – 2015 before special items

Fresenius Kabi:Key Figures Q1/2017

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1 – 7% organic growth, 2% currency effects

2 – Net income attributable to shareholders of Fresenius Kabi AG

Fresenius Helios: Europe's largest private hospital operator Helios Kliniken Germany

  • • ~6% share in German acute care hospital market
  • • Solid organic growth based on growing number of admissions and reimbursementrate increases
  • • Strong track record in hospital acquisitions and operation
  • • Quality leader in the German hospital sector

German Acute Care Hospital Market:

•~€94 billion1, thereof 18% privatized

Growth Drivers:

•Further market consolidation

1 – German Federal Statistical Office 2016; total costs, gross of the German hospitals less academic research and teaching

2 – As of December 31, 2016

Fresenius Helios: Europe's largest private hospital operator Quirónsalud Spain

2016 Financial Highlights

  • •€2,540 bn Sales
  • •€461 m EBITDA, ~18% Margin
  • •~10% 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 ORPs

Market Dynamics

Spanish Private Hospital Market:

•~€13 billion1

Growth Drivers:

• Increasing number of privately insured patients, greenfield projects, market consolidation

1 – Market data based on company research. Market definition does neither include PPPs nor ORP centers

2 – As of December 31, 2016 (including 1 hospital in Peru)

Fresenius Helios: Impressive Growth and Profitability1

Sales€ million

EBITDA2

€ million

1 – All data according to U.S. GAAP

2 – Before special items

3 – EBITDA Margin

Fresenius Helios: Key Figures 20161

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1 – All data according to U.S. GAAP

2 – 4% organic growth, 1% acquisitions

3 – Net income attributable to shareholders of HELIOS Kliniken GmbH

4 – 2015 before special items

Fresenius Helios: Key Figures Q1/2017

€
i
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1
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N
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+

1 – 5% organic growth, 36% acquisitions (mainly Quirónsalud)

2 – Quirónsalud is consolidated since February 1, 2017. Sales of Quirónsalud were €490 million in February and March

3 – Net income attributable to shareholders of HELIOS Kliniken GmbH

Fresenius Vamed: A Leading Specialist in Hospital Projects and Services

  • • Specialized in project development, building hospital infrastructure and providing hospital services (technical services and operational management)
  • • Manages hospital construction/expansion projects and provides services for health care facilities

Services

•Strong track record:

  • More than 800 projects in 79 countries completed
  • Services provided to >600 hospitals and 143,000 beds globally

Growth Drivers:

Emerging Markets

29%

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

1 – LTM March 31, 2017

Financial Overview

Fresenius Group: Demonstrating Strong Sales and EBITDA Growth1

1 – All cata according to U.S. GAAP

2 – Before special items

3 – EBITDA Margin

Fresenius Group: Key Figures 20161

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i
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,

1 – All data according to U.S. GAAP

2 – 6% organic growth, 1% acquisitions, -1% divestitures, -1% currency effects

3 – Before special items

4 – Net income incl. attributable to non-controlling interest

Fresenius Group: Key Figures Q1/2017

€
i
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i
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1
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1
7
7
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B
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+
i
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1
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N
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%
3
0
+

1 – 7% organic growth (excluding effects of VA-agreement), 10% acquisitions, 2% currency effects

2 – Net income incl. attributable to non-controlling interest

3 – The VA-agreement increased net income by €59 million

4 – 20% excluding the VA-agreement

Fresenius Group: Cash Flow Development by Business Segment 20161

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1
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5
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7
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1 – All data according to U.S. GAAP

2 – Before acquisitions and dividends

3 – Margin incl. FMC dividend

4 – Understated: 5.4% excluding €43 million of capex commitments from acquisitions

Fresenius Group: Proven Track Record of Deleveraging

Net Debt/EBITDA1 Acquisition of APP PharmaceuticalsAcquisition of Renal Care Group Acquisition of hospitals from Rhoen-KlinikumAcquisition of Quirónsalud22 2 2 3 2 4 4,5 Leverage target 2017~3.36 23.2x3.0x2.7x2.2x 2.3x 3.5x3.0x2.6x3.6x3.0x2.6x2.8x2.5x 2.5x3.4x2.7x2.4x3.0x2.02.22.42.62.83.03.23.43.63.84.02001 2002 2003 2004 2005 Q1/06 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1/17

1 – At actual FX rates for both Net Debt and EBITDA

  • 2 Pro Forma acquisitions, before special items
  • 3 Pro forma excluding advances made for the acquisition of hospitals from Rhoen-Klinikum AG, before special items
  • 4 Pro Forma acquisitions
  • 5 EBITDA LTM March 31, 2017
  • 6 Pro forma acquisitions of Akorn, Inc. and Merck KGaA's biosimilars business; before transaction costs of ~€50 million; excluding further potential acquisitions and at annual average FX rates for both EBITDA and net debt

Financing Facilities and Debt Structure

Fresenius Group: Debt and Cash Flow Structure – March 31, 2017

  • 1 Incl. Fresenius financing subsidiaries
  • 2 Controlling stake
  • 3 As held by Fresenius ProServe GmbH, a wholly owned subsidiary of Fresenius SE & Co. KGaA, which provides the guarantees
  • 4 Incl. subsidiaries
  • 5 Based on market capitalization for FMC as of May 03, 2017

Fresenius Group: Capitalization – March 31, 2017

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Fresenius Medical Care: Debt Maturity Profile – March 31, 20171

1 – Based on utilization of major financing instruments

Fresenius Group excl. Fresenius Medical Care: Debt Maturity Profile – March 31, 20171

1 – Based on utilization of major financing instruments

Fresenius Group: Debt Maturity Profile – March 31, 20171

1 – Based on utilization of major financing instruments

Acquisition of Akorn & Merck's Biosimilars Business: Fresenius Kabi to Strengthen and Diversify its Product Portfolio

Acquisition of Akorn: Strategic Rationale

Dosage forms Distribution channels

Note: Sales mix based on 2016 data

Acquisition of Akorn: Financially Sound Acquisition

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Acquisition of Akorn: Financial Outlook

1 – Akorn announced on April 24, 2017, that based on a preliminary review of Q1 results, it is reaffirming its previously announced 2017 guidance (including revenue of US\$1,010 to 1,060 million and adjusted EBITDA of US\$363 to 401 million), excluding any one-time costs related to the transaction with Fresenius Kabi

2 – Fresenius Kabi business plan

Acquisition of Merck's Biosimilars Business: Strategic Rationale

Strategic step to enhance Fresenius Kabi's position as a leading player in the injectable pharmaceuticals market

Direct access to attractive biosimilars development platform with a pipeline of a sin gle-digit number of molecules in oncology and autoimmune diseases

Experienced team of >70 biosimilars experts with excellent development know-how and a network of external partners supportin g documentation, development and regulatory affairs

Support from Merck Biopharma in manufacturing, analystics, regulatory, quality, safety and clinical operations

Acquisition of Merck's Biosimilars Business: Sound risk/reward ratio

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Summary and Outlook

Fresenius Group: 2017 Financial Outlook by Business Segment1

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  • 2 Before transaction costs of ~€50 million for the acquisitions of Akorn, Inc. and Merck KGaA's biosimilars business; before expected expenditures for the further development of Merck KGaA's biosimilars business of ~€50 million (expected closing H2/17)
  • 3 At annual average FX rates for both EBITDA and net debt
  • 4 Pro Forma acquisitions

Strong Growth Fundamentals:

Aging Population and Increasing Healthcare Spending

• Aging population and higher incidence of chronic diseases World population age 60+ will reach >2bn by 20501

  • • Increasing health expenditure per capita, 2014 vs. 2004 – USA \$9,403 (+147%), China: \$420 (+592%), India: \$75 (+277%) 2
  • • By 2022, one third of all global health expenditure will occur in Emerging Economies 31/3

1 – WHO: 10 facts on aging and the life course

2 – World Bank: Health expenditure per capita

3 – World Economic Forum: Health Systems Leapfrogging in Emerging Economies – Project Paper (2014)

Ambitious Mid-Term Targets

1 – Mid-point of the 2017 sales guidance, adjusted for current exchange rates

2 – Mid-point of the 2017 net income guidance, adjusted for current exchange rates

3 – Calculated on the basis of the mid-point of the 2020 target range

At current exchange rates; excluding strategic acquisitions; at current IFRS rules

Investment Highlights

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Report Publication Announcement 2025
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Quarterly Report 2025
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Interim / Quarterly Report 2025
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Investor Presentation 2025
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Declaration of Voting Results & Voting Rights Announcements 2025
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Declaration of Voting Results & Voting Rights Announcements 2025
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Governance Information 2025
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