Fresenius SE & Co. KGaA

Investor Presentation • Jan 16, 2017

16. German Corporate Conference GCC

Frankfurt, 16/17 January 2017

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

A Global Leader In Healthcare Products And Services

~€28.6 bn in Sales

Strong portfolio of products (30% of sales) and services (70% of sales)

(LTM Q3/2016) Total Shareholder Return: 10-year CAGR: ~20%

Global presence in 100+ countries

230,000+ employees worldwide (as of Sep 30, 2016)

Total Shareholder Return – CAGR, rounded

Source: Bloomberg; dividends reinvested

Fresenius Group: Consistent Cash Generation And Proven Track Record of Deleveraging

CFFO margin FCF margin (before acquisitions & dividends)

Capex in % of sales

Net Debt / EBITDA1

¹ 2011 – 2015 adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)

Strong, Diversified Product And Service Portfolio

Ownership: 31% Ownership: 100% Ownership: 100% Ownership: 77%

Dialysis Products	Hospital Supplies	Hospital Operations	Hospital Projects
Healthcare Services	and Services		and Services
Sales 2015: US\$16.7 bn	Sales 2015: €6.0 bn	Sales 2015: €5.6 bn	Sales 2015: €1.1 bn

Fresenius Medical Care: Global Dialysis Market Leader

• The world's leading provider of dialysis products and services treating 306,366 patients in 3,579 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 2015:

• ~US\$73 bn
• ~6% patient growth p.a.

Growth Drivers:

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

¹ As of Sep 30, 2016

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

• Focus on organic growth through geographic product rollouts and new product launches

Market Dynamics

Global Addressable Market 2015:

• >€33 bn

Growth Drivers:

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

Fresenius Helios: Leading German Hospital Operator

• ~6% share in German acute care hospital market
• Strong track record in hospital acquisitions and operations
• High-quality medical care, e.g., mortality rate for heart failure and pneumonia below German average
• Comprehensive healthcare services coverage

Acute Care

Outpatient

Rehab

German Acute Care Hospital Market:

• ~€91 bn1

Growth Drivers:

• Aging population leading to increasing hospital admissions, further market consolidation

Majority of population has access to a HELIOS hospital within one hour's drive2

• 112 hospitals
• ~35,000 beds
• ~1.3 million inpatient admissions
• ~3.4 million outpatient admissions

¹ German Federal Statistical Office 2015; total costs, gross of the German hospitals less academic research and teaching 2 As of Sep 30, 2016

Fresenius Vamed: Leading Global hospital Projects And Services Specialist

• Manages hospital construction/expansion projects (51% of sales) and provides services (49% of sales) for health care facilities worldwide

Market Dynamics

Growth Drivers:

• Emerging Market demand for building and developing hospital infrastructure

• Outsourcing of non-medical services from public to private operators

• Offers project development, planning, turnkey construction, maintenance as well as technical management, and total operational management

• Strong track record: More than 760 projects in 78 countries completed

Fresenius Group: 2016 Financial Outlook by Business Segment

		Old	New
	Sales growth organic	3% – 5%	4% – 6%
	EBIT growth (cc)	3% – 5%	4% – 6%
	Sales growth organic	3% – 5%	unchanged
	EBIT	€670 – 700 m	unchanged
	Sales growth organic	5% – 10%	unchanged
	EBIT growth	5% – 10%	unchanged

Fresenius Group: 2016 Financial Guidance

	2015	2016
	Actual	Old	New
Sales growth constant currency	€27.6 bn	6% – 8%	unchanged
Net income1 growth constant currency	€1,423 m	11% – 14%	12% – 14%

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

Financials Q3/16

Fresenius Group: Q3/2016 Highlights

Acquisition of Quirónsalud: Transaction Highlights

Acquisition of Quirónsalud: Broad Revenue Base

HIC = Health Insurance Companies; NHS = National Health Care System

Acquisition of Quirónsalud: Financial Outlook

Acquisition of Quirónsalud: Corporate History

NHS = National Health Care System; HIC = Health Insurance Companies; ORP = Occupational risk prevention

Acquisition of Quirónsalud:

Hospital Network With Clear Focus on Large Metropolitan Areas

43 hospitals, 39 outpatient centers ~300 ORP centers ~€2.5 bn Sales (2016e)
€460 – 480 m EBITDA (2016e)
6,600 beds and 35,000 staff
9.4 m outpatient admissions p.a.
320,000 inpatient admissions p.a.

Acquisition of Quirónsalud: Financially Sound (I)

Depreciation	~4% of sales in FY16; • good proxy for following years
Amortization	~€150 m1 Initially p.a. •
Cost of Debt	~2.0% •
Tax rate	25% •
EAT bef. amortization	• 2017e >€200 m
CAPEX	~4% of sales in FY16; • good proxy for following years

¹ Preliminary, before final PPA

Total consideration	€5.76 bn (on a cash and debt-free basis) • Approx. 10.8x1 EBITDA 2017e •
Financing	Issuance of ~6.1 m shares valued at • €400 m to Victor Madera Balance of the purchase price debt-financed •
Net debt/EBITDA	2016 pro forma ~3.1x • 2017e back within 2.5 ‒ 3.0x range •

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

Acquisition of Quirónsalud: Integration by Interaction

Fresenius Group: Q3/2016 Key Financials

Constant currency growth rates 2015 EBIT before special items Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items

Fresenius Group: Profit and Loss Statement

€m	Q3/2016	Q3 YoY1 Δ	Q1–3/2016	Q1–3 YoY1 Δ
Sales	7,339	7%	21,345	6%
EBIT2	1,082	6%	3,092	9%
Net interest	-142	2%	-433	8%
Income taxes2	-255	2%	-746	-7%
Net income2,3	399	10%	1,154	15%

¹ Constant currency growth rates

² 2015 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 on slides 44–45.

Fresenius Group: Q3/2016 Key Financials

2015 EBIT before special items

		Q3/2016	Δ Q3 YoY
	Sales	US\$4,598 m	9%
	EBIT	US\$670 m	9%
	Sales	€1,511 m	1%
	EBIT1	€300 m	0%
	Sales	€1,470 m	6%
	EBIT1	€175 m	6%
	Sales	€268 m	0%
	EBIT	€15 m	7%

1 2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 44-45.

Fresenius Kabi (1/2): Key Topics Q3/2016

North America

• 2% organic sales growth in Q3/16 despite tough PY quarter
• Gradual easing of IV drug shortages: 16 Kabimarketed products currently designated in shortage vs. 17 at the end of Q2/16
• 6 product launches YTD; confirm top end of 6 to 10 target range for FY/16

Product Name	Product Group	Launch Date
Amikacin	Anti-infective	Q1
Linezolid	Anti-infective	Q2
Chloramphenicol	Anti-infective	Q2
SmofLipid	Lipid emulsion	Q3
Daptomycin	Anti-infective	Q3
Ketorolac (pre-filled syringe)	Analgesic	Q3

• Increase outlook: Low to mid single-digit organic sales growth for FY/16 (Previous: Low single-digit)

Europe

• 3% organic sales growth in Q3/16
• On track to meet outlook of low to mid single-digit organic sales growth for FY/16

Fresenius Kabi (2/2): Key Topics Q3/2016

Emerging Markets

China

• 9% organic sales growth in Q3/16
• New tender rules:
• − 10 out of 31 provinces have finalized tender process
• − Expect low single-digit price impact in FY16
• Sustainable double-digit volume growth expected

Asia-Pacific ex China

• 10% organic sales growth in Q3/16

Latin America/Africa

• 7% organic sales growth in Q3/16

Emerging Markets overall

• On track to meet FY/16 outlook of likely low double-digit organic sales growth

China tender situation: Applicable to Kabi's Pharmaceutical and Nutrition business

Disclaimer: This update is only intended to give a general picture of the drug purchase tendering status of each province / direct-controlled city in China. The status may vary between type of drugs, specific products or specific area /hospital.

Fresenius Kabi: Organic Sales Growth by Regions

Total sales	1,511	5%	4,457	6%
Latin America/Africa	158	7%	439	16%
Asia-Pacific	290	9%	821	8%
North America	542	2%	1,628	5%
Europe	521	3%	1,569	2%
€m	Q3/2016	Organic Growth	Q1–3/2016	Organic Growth

Fresenius Kabi: Organic Sales Growth by Product Segment

Total sales	1,511	5%	4,457	6%
Medical Devices/ Transfusion Technology	271	7%	777	5%
Clinical Nutrition	403	7%	1,173	7%
Infusion Therapy	217	3%	636	5%
IV Drugs	620	2%	1,871	5%
€m	Q3/2016	Organic Growth	Q1–3/2016	Organic Growth

Fresenius Kabi: EBIT

€m	Q3/2016	Q3 YoY1 Δ	Q1–3/2016	Q1–3 YoY1 Δ
Europe	80	-2%	243	-3%
Margin	15.4%	-70 bps	15.5%	-90 bps
North America	216	7%	669	11%
Margin	39.9%	170 bps	41.1%	220 bps
Asia-Pacific/Latin America/Africa	94	11%	245	18%
Margin	21.0%	80 bps	19.4%	220 bps
Corporate and Corporate R&D	-90	-26%	-241	-20%
Total EBIT	300	1%	916	7%
Margin	19.9%	-20 bps	20.6%	90 bps

¹ Constant currency growth rates

2015 before special items

Margin growth at actual rates

For a detailed overview of special items please see the reconciliation tables on slides 44–45.

Fresenius Helios: Key Topics Q3/2016

Germany

• 4% organic sales growth in Q3/16 driven by admissions increase
• Ongoing favorable reimbursement environment: 2017 DRG inflator set at 2.50%

Quirónsalud

• Closing process and debt financing progressing
• On track to meet FY/16 outlook:
• − Sales of €2.5 bn
• − EBITDA of €460 to 480 m

1 Organic sales growth

Fresenius Helios: Strong Sales Growth

€m	Q3/2016	Δ Q3 YoY	Q1–3/2016	Δ Q1–3 YoY
Established clinic portfolio	1,454	4%	4,352	4%
Acquisitions (consolidation <1 yr)	16	n.a.	30	n.a.
Total Sales	1,470	6%	4,382	5%

2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 44–45.

€m	Q3/2016	Δ Q3 YoY	Q1–3/2016	Δ Q1–3 YoY
Total sales	1,470	6%	4,382	5%
EBIT Established clinic portfolio	174	5%	506	7%
Margin	12.0%	20 bps	11.6%	30 bps
Acquisitions / Divestitures (consolidation / deconsolidation <1 yr) Margin	1 6.3%	-- --	1 3.3%	-- --
Total EBIT Margin	175 11.9%	6% 10 bps	507 11.6%	7% 30 bps

2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 44–45.

Fresenius Helios: 2015 Clinic Development Plan

					Years	in Portfolio
	<1	1	2	3	4	51	6	>6	Total1
No. of clinics	1	-	-	12	3	40	-	55	111
Revenue (€m)	7	-	-	410	173	2,002	-	2,837	5,429
Target
EBIT margin (%)	-	2.0	4.0	6.0	8.0	10.0	12.0	12.0 – 15.0
EBIT (€m)	-	-	-	24.6	13.8	200.2	-	340.5	579.1
Reported
EBIT margin (%)	6.2	-	-	9.8	6.9	10.4	-	13.2	11.7
EBIT (€m)	0.4	-	-	40.1	11.9	207.9	-	373.3	633.6
No. of clinics > target	-	-	-	8	1	19	-	25	53
No. of clinics < target	-	-	-	4	2	21	-	30	57

1 Includes all hospitals acquired from Rhön Klinikum, €12 m integration costs allocated to individual hospitals.

Fresenius Helios: Performance Indicators

	Q1–3/2016	Q1–3/2015	Change
No. of hospitals1	112	111	1%
- Acute care clinics	88	87	1%
- Post-acute care clinics	24	24	0%
No. of beds1	34,701	34,076	2%
- Acute care clinics	29,613	28,914	2%
- Post-acute care clinics	5,088	5,162	-1%
Admissions
- Acute care (inpatient)	923,134	891,654	4%
Occupancy
- Post-acute care	83%	83%
Average length of stay (days)
Acute care2 -	6.4	6.5
- Post-acute care	26.1	26.5

1 December 31, 2015

2 German average (2015): 7.3

Fresenius Vamed: Key Topics Q3/2016

• 1% organic sales growth in Q3/16 reflects typical quarterly fluctuations of project business
• Continued strong order intake with good regional diversification

€m	Q3/ 2016	Δ	Q1–3/ 2016	Δ
Project business	130	-1%	325	-2%
Service business	138	1%	415	4%
Total sales	268	0%	740	1%
Total EBIT	15	7%	31	3%
Order intake1	209	9%	674	42%

¹ Project business only

² Versus December 31, 2015

Fresenius Group: Overview – Calculation of Noncontrolling Interest

€m	Q1–3/2016	FY/2015
Earnings before tax and noncontrolling interest	2,659	3,262
Taxes	-746	-965
Noncontrolling interest, thereof	-759	-939
Fresenius Medical Care net income not attributable to Fresenius (Q1–3/16: ~69%)	-530	-641
Noncontrolling interest holders in Fresenius Medical Care (Q1–3/16: US\$217 m according to Fresenius Medical Care's Financial Statements)	-195	-256
Noncontrolling interest holders in Fresenius Kabi (-€27 m), Fresenius Helios (-€1 m), Fresenius Vamed (-€1 m) and due to Fresenius Vamed's 23% external ownership (-€5 m)	-34	-42
Net income attributable to Fresenius SE & Co. KGaA	1,154	1,358

Fresenius Group: Cash Flow

	Operating CF		Capex	(net)	Free Cash Flow1
€m	Q3/2016	LTM Margin	Q3/2016	LTM Margin	Q3/2016	LTM Margin
	311	16.2%	-83	-5.4%	228	10.8%
	207	11.5%	-74	-5.3%	133	6.2%3
	21	10.6%	-2	-0.8%	19	9.8%
Corporate/Other	-3	n.a.	-2	n.a.	-5	n.a.
Excl. FMC	536	14.4%2	-161	-5.1%	375	9.3%2
	929	12.0%	-372	-5.5%	557	6.5%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend

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

	Operating CF		Capex	(net)	Free Cash Flow1
€m	Q1–3/2016	LTM Margin	Q1–3/2016	LTM Margin	Q1–3/2016	LTM Margin
	646	16.2%	-208	-5.4%	438	10.8%
	437	11.5%	-176	-5.3%	261	6.2%3
	22	10.6%	-6	-0.8%	16	9.8%
Corporate/Other	-7	n.a.	-5	n.a.	-12	n.a.
Excl. FMC	1,098	14.4%2	-395	-5.1%	703	9.3%2
	2,259	12.0%	-1.052	-5.5%	1,207	6.5%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend

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

Fresenius Group: Cash Flow

€m	Q3/2016	LTM Margin	Q3/2015	LTM Margin	Δ YoY
Operating Cash Flow	929	12.0%	900	11.3%	3.2%
Capex (net)	-372	-5.5%	-327	-5.2%	-13.8%
Free Cash Flow (before acquisitions and dividends)	557	6.5%	573	6.1%	-2.8%
Acquisitions (net)	-40		-47
Dividends	-58		-59
Free Cash Flow (after acquisitions and dividends)	459	3.1%	-467	1.4%	-1.7%

Fresenius Group: Leverage Ratio

¹ Pro forma acquisitions; before special items

² Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)

³ Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before special items

⁴ Before special items

⁵ 2015 before special items

At annual average FX rates for both EBITDA and net debt

Reconciliation according to U.S. GAAP Q3 2016/ Q3 2015

The Group's U.S. GAAP financial results as of September 30, 2016 do not include special items, whereas the U.S. GAAP financial results as of September 30, 2015 include special items. Net income attributable to shareholders of Fresenius SE & Co.KGaA was adjusted for these special items. The table below shows the special items and the reconciliation from net income (before special items) to earnings according to U.S. GAAP.

€m	Q3/2015 before special items	efficiency program KABI	integration costs for acquired Rhön hospitals	disposal gains from two HELIOS hospitals	Q3/2015 according to U.S. GAAP (incl. special items)
Sales	6,940				6,940
EBIT	1,027	-10	-4	0	1,013
Interest result	-146				-146
Net income before taxes	881	-10	-4	0	867
Income taxes	-262	4			-258
Net income	619	-6	-4	0	609
Noncontrolling interest	-252				-252
Net income attributable
to shareholders of Fresenius SE & Co. KGaA	367	-6	-4	0	357

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

The Group's U.S. GAAP financial results as of September 30, 2016 do not include special items, whereas the U.S. GAAP financial results as of September 30, 2015 include special items. Net income attributable to shareholders of Fresenius SE & Co.KGaA was adjusted for these special items. The table below shows the special items and the reconciliation from net income (before special items) to earnings according to U.S. GAAP.

Net income attributable to shareholders of Fresenius SE & Co. KGaA	1,009	-34	-10	34	999
Noncontrolling interest	-661				-661
Net income	1,670	-34	-10	34	1,660
Income taxes	-703	16	2		-685
Net income before taxes	2,373	-50	-12	34	2,345
Interest result	-476				-476
EBIT	2,849	-50	-12	34	2,821
Sales	20,369				20,369
€m	Q1–3/2015 before special items	efficiency program KABI	integration costs for acquired Rhön hospitals	disposal gains from two HELIOS hospitals	Q1–3/2015 according to U.S. GAAP (incl. special items)

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

Share Information

Share key facts
Number of shares1	546,932,731
WKN / ISIN	578560 / DE0005785604
Ticker symbol	FRE
Bloomberg symbol	FRE GR
Reuters symbol	FREG.de
ADR key facts
Ratio	4 ADRs = 1 ordinary share
ADR CUSIP / ISIN	35804M105 / US35804M1053
Ticker symbol	FSNUY
Exchange	OTCQX International Premier
Structure	Sponsored Level I ADR
Depositary bank	Deutsche Bank

¹ As of September 30, 2016

Financial Calendar / Contact

Financial Calendar 2017

22.02.2017	Report on Fiscal Year 2016
03.05.2017	Report on 1st quarter 2017
12.05.2017	Annual General Meeting, Frankfurt/Main
01.08.2017	Report on 2nd quarter 2017
02.11.2017	Report on 3rd quarter 2017

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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