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Fresenius SE & Co. KGaA

Investor Presentation • Jan 19, 2017

166_ip_2017-01-19_b651ce47-f064-49f5-890e-21f8f30dbc24.pdf

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A Leading Global Health Care Group

BNP Paribas – Leveraged Finance Conference 2017 January 19, 2017 – London

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

  • 1 Company Overview
  • 2 Business Segments
  • Fresenius Medical Care
  • Fresenius Kabi
  • Fresenius Vamed
  • Fresenius Helios
  • 3 Acquisition of Quirónsalud
  • 4 Financial Overview
  • 5 Financing Facilities and Debt Structure
  • 6 Summary and Outlook

Company Overview

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

  • Sales €28.6 bn, net income1 €2.6 bnin LTM September 30, 2016
  • Strong and well-diversified portfolio
  • Leading market positions
  • Global presence
  • Long-term opportunities in growing, non-cyclical markets

1 – Net income incl. attributable to non-controlling interest, 2015 before special items

Fresenius Group: Strong and Balanced Health Care Portfolio

  • 1 LTM September 30, 2016
  • 2 2015 before special items
  • 3 Based on market capitalization of FSE as of December 31, 2016
  • 4 Based on consolidated market capitalization of FSE and FME as of December 31, 2016 and consolidated net debt as of Sept 30, 2016
  • 5 Held by Fresenius ProServe GmbH, a wholly owned subsidiary of FSE
  • 6 Based on market capitalization of FME as of December 31, 2016

Fresenius Group: Financial Results

2 – Incl. attributable to non-controlling interest

3 – 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 – LTM September 30, 2016

2 – Due to project delays in Russia and Ukraine

Business Segments

Fresenius Medical Care: Global Market Leader in Dialysis

  • − World leader in dialysis products and services treating 306,366 patients in 3,579 clinics worldwide 1
  • Provide highest standard of patient care
  • −Vertical integration
  • −High quality products & services
  • −Complete therapy offerings
  • Leader in growing market
  • − Dialysis market growing 4% cc and estimated to reach around \$100 bn by 2020
  • − Patient growth driven by age, life style and mortality reduction
  • −Growth opportunities in emerging markets

Industry Dynamics

~6% global patient growth p.a.~3.8 million patients by 2020 expected

Patients in million

1 – As of Sept 30, 2016

Fresenius Medical Care: Key Figures Q1-Q3/2016

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1 – 7% organic growth, 2% acquisitions, -1% divestitures, -1% currency effects

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

Fresenius Medical Care: Leading in all Regions1

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1 – Company data and internal estimates, as of Q3/2016

Fresenius Medical Care: Leverage Ratio and Ratings

1 – Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)

Fresenius Kabi: A Worldwide Leading Hospital Supplier

  • − Comprehensive product portfolio for critically and chronically ill patients:
  • −Generic I.V. Drugs
  • −Clinical Nutrition
  • −Infusion Therapy
  • −Medical Devices / Transfusion Technology
  • −Global addressable market: >€33 bn
  • −Leading market positions
  • − Focus on organic growth driven by geographic product rollout and robust product pipeline
  • − Aim to expand the business through selective acquisitions

LTM Sept 30, 2016 Sales by Region

Fresenius Kabi: Strong Growth Track Record & High Profitability

1 – Before special items

2 – LTM September 30, 2016

Fresenius Vamed: A Leading Global Specialist in Hospital Projects and Services

  • − Specialized in project development, building hospital infrastructure and providing hospital services (technical services and operational management)
  • − Track record:
  • − >760 health care projects in 78 countries successfully completed
  • − Services provided to > 550 hospitals and 135,000 beds globally
  • − Continuous demand for hospital infrastructure and operating efficiency; key markets: Europe, Asia-Pacific, Africa

Fresenius Helios: Leading Hospital Operator in Germany

  • German Acute Care Hospital Market: ~€91 bn1, thereof 18% privatized
  • ~6% share in German Acute Care Hospital Market
  • High-quality medical care
  • Solid organic growth based on growing number of admissions and reimbursement rate increases
  • Strong track record in hospital operations and acquisitions: targeting 12 − 15% EBIT margin within 6 years per individual clinic location
  • Negligible bad debt ratio due to comprehensive insurance coverage of German population

1 – German Federal Statistical Office 2015; total costs, gross of the German hospitals less academic research and teaching

2 – As of June 30, 2016

Fresenius Helios: Strong Growth Track Record & High Profitability

EBITDA1

€ million

1 – Before special items

2 – LTM September 30, 2016

Sales

Acquisition of Quirónsalud

Acquisition Highlights

Strong management team with proven track recordand ongoing commitment to Fresenius

Combination forms powerful platform for knowledge & best practice transfer

Highly accretive from 2017 – leverage back to current levels after 1.5 years

New mid-term targets for Fresenius Group as part of its FY 2016 reporting

Excellent Reputation in the Spanish Hospital Market

Hospital Network With Clear Focus on Large Metropolitan Areas

Spanish Health Care Market – Key Facts

Total health care expenditure

Average length of stay

Hospital discharges

Private Health Care System in Spain

NHS = National Health Care System; HIC = Health Insurance Companies * Expectation: mid-term CAGR +1.5%

Structural Growth Drivers

Health care expenditure per capita in Spain below EU average

Close dovetailing of inpatient and outpatient care

Public – NHS (PPPs)

Expansionof existing facilities

Greenfieldprojects

Acquisition of private hospitals

Financial Outlook

Financially Sound Acquisition

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1 – based on mid-point of projected 2017 EBITDA range of €520 ‒ €550m

Financial Overview

Fresenius Group: Key Figures Q1-Q3/2016

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

2 – 2015 before special items

3 – Net income incl. attributable to non-controlling interest, calculated as the sum of net income, adjusted, attributable to shareholders of Fresenius SE & Co. KGaA for the nine month ended Sept 2016 and noncontrolling interest for the nine month ended September 2016. 2015 before special items; calculated respectively for the relevant period

4 – As of December 31, 2015

Fresenius Group:Cash Flow Development Q1-Q3/2016

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1 – Before acquisitions and dividends

2 – Margin incl. FMC dividend

3 – Understated: 7.1% excluding €51 million of capex commitments from acquisitions

Fresenius Group: Proven Track Record of Deleveraging

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1 – Pro forma acquisitions, before special items

2 – Before special items

3 – Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015 – 03)

4 – Pro forma excluding advances made for the acquisition of hospitals from Rhoen-Klinikum AG, before special items

5 – At annual average FX rates for both EBITDA and net debt, excluding potential acquisitions

Fresenius Group: Capitalization – September 30, 2016

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1 – Based on market capitalization for FSE and FMC as of December 31 ,2016

2 – 2015 before special items; pro forma acquisitions

3 – Exchange rate of 1.1162 as of Sept 30, 2016, except for market capitalization which uses exchange rate as of December 31, 2016

Fresenius Group excl. Fresenius Medical Care: Debt Maturity Profile1September 30, 2016

1 - Based on utilization of major financing instruments

Summary and Outlook

Fresenius Medical Care: 2016 Financial Outlook confirmed

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  • 2016 net income growth outlook is based on current exchange rates
  • Savings from the global Efficiency Program are included
  • Acquisitions 2015/2016 are not included
  • Net income growth based on \$1,057 million in 2015 1
  • 1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA (\$1,029 million), including GranuFlo®/NaturaLyte®agreement in principle (+\$37 million) and excluding acquisitions in 2015 of \$9 million

Fresenius Group: 2016 Financial Guidance

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1- Net income attributable to shareholders of Fresenius SE & Co.KGaA; 2015 before special items

Aging Population and Increasing Healthcare Spending

• Aging population and higher incidence of chronic diseasesWorld population age 60+ will reach >2bn by 2050 (WHO)

  • • Increasing health expenditure per capita, 2014 vs. 2004 – USA \$9,403 (+147%), China: \$420 (+592%), India: \$75 (+277%)1

  • • By 2022, one third of all global health expenditure will occur in Emerging Economies21/3

  • 1 World Bank: Health expenditure per capita

  • 2 World Economic Forum: Health Systems Leapfrogging in Emerging Economies Project Paper (2014)
  • 3 WHO: Global status report on non communicable diseases

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