Fresenius SE & Co. KGaA

Investor Presentation • Sep 29, 2016

JP Morgan Milan Investor Forum

29 September 2016

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.

Acquisition of Quirónsalud: Transaction Highlights

Excellent Reputation in the Spanish Hospital Market

Quirónsalud – Corporate History

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

Hospital Network With Clear Focus on Large Metropolitan Areas

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

Spanish Health Care Market – Key Facts

Average length of stay

Hospital discharges

Hospital beds

Private Health Care System in Spain

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

Broad Revenue Base of Quirónsalud Driven by Diversified Payor and Patient Split

• Medical tourism

• Cross-selling opportunities

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

Structural Growth Drivers

Health care expenditure per capita in Spain below EU average

Close dovetailing of inpatient and outpatient care

Public – NHS (PPPs)

Expansion of existing facilities

Greenfield projects

Acquisition of private hospitals

10

Financial Outlook

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

¹ preliminary, before final PPA

Total consideration	€5.76 billion (on a cash and debt-free basis) • Approx. 10.8x1 EBITDA 2017e •
Financing	Issuance of ~6.1m shares valued at • €400 million 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 ‒ €550m

Integration by Interaction

Fresenius A Global Leader In HealthCare Products And Services

A Global Leader In HealthCare Products And Services

~€27.6 bn in Sales

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

(as of Dec. 31, 2015) Total Shareholder Return: 10-year CAGR: ~20%

Global presence in 100+ countries

222,000+ employees worldwide (as of Dec 31, 2015)

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

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

Net Debt / EBITDA1

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 301,548 patients in 3,504 clinics1
• Provide highest standard of product quality and patient care

Dialysis products

Dialysis services

Complete therapy offerings

• 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 Jun 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

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

Market Dynamics

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

• 34,000 beds

• ~1.3 million inpatient admissions
• ~3.4 million outpatient admissions

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

Projects

Services

• 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

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: 2016 Financial Outlook by Business Segment

		Old	New
	Sales growth organic	low single-digit	3% – 5%
	EBIT constant currency	roughly flat	3% – 5%
	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	€27.6 bn	6% – 8%	unchanged
constant currency
Net income1 growth	€1,423 m	8% – 12%	11% – 14%
constant currency

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

Fresenius Group: Confirming mid-term growth targets

2019:

€36 - 40 billion in sales €2.0 - 2.25 billion in net income

At comparable exchange rates

Includes small and mid-size acquisitions

EAT CAGR at mid-point of mid-term target: 10.5% (Previous implied EAT CAGR of mid-term target: 8.4%)

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

Financials Q2/16

Fresenius Group: Q2/16 Highlights

Fresenius Group: Key Financials Q2/16

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	Q2/2016	Growth Q2 YoY constant rates	H1/2016	Growth H1 YoY constant rates
Sales	7,092	5%	14,006	6%
EBIT1	1,051	11%	2,010	11%
Net interest	-139	14%	-291	11%
Income taxes1	-262	-15%	-491	-12%
Net income2	393	15%	755	18%

1 2015 before special items

² Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 36-37.

Fresenius Group: Key Financials Q2/16

Sales, EBIT FMC in US\$ 2015 EBIT before special items

Financial results by business segment

			Q2/2016	Growth Q2 YoY
		Sales	US\$4,420 m	5%
		EBIT	US\$641 m	17%
		Sales	€1,476 m	-4%
		EBIT1	€307 m	-2%
		Sales	€1,477 m	7%
		EBIT1	€173 m	8%
		Sales	€254 m	0%
	EBIT	€9 m	0%

12015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 36 – 37.

Fresenius Kabi: Key Topics Q2/2016

North America

• Gradual easing of IV drug shortages; 17 Kabi-marketed products currently designated in shortage vs. 20 at the end of Q1/16
• New product launches expected to be backend loaded in FY/16; confirm top end of 6 to 10 target range for FY/16
• Increase outlook: Low single-digit growth for FY/16 (previous: roughly flat)

Europe

• Ongoing lower contract manufacturing sales volume expected
• Confirm FY/16 outlook of low to mid single-digit organic sales growth

Fresenius Kabi: Key Topics Q2/2016

Emerging Markets

• China: 8% organic sales growth in Q2; new tender rules: slower progress than anticipated; continued double-digit volume growth
• Asia Pacific ex China: Accelerating growth, 8% organic sales growth in Q2
• Latin America/Africa standing out with 22% organic sales growth
• Increase outlook: Likely low double-digit organic growth for FY/16 (previous: mid to high single-digit)

Fresenius Kabi: Organic Sales Growth by Regions

Total sales	1,476	3%	2,946	6%
Latin America/Africa	153	22%	281	21%
Asia-Pacific	277	8%	531	7%
North America	510	-6%	1,086	6%
Europe	536	2%	1,048	2%
€m	Q2/2016	Organic Growth	H1/2016	Organic Growth

Fresenius Kabi: Organic Sales Growth by Product Segment

Total sales	1,476	3%	2,946	6%
Transfusion Technology
Medical Devices/	261	6%	506	4%
Clinical Nutrition	392	6%	770	6%
Infusion Therapy	217	8%	419	6%
IV Drugs	606	-2%	1,251	7%
€m	Q2/2016	Organic Growth	H1/2016	Organic Growth

Fresenius Kabi: EBIT Growth

€m	Q2/2016	Growth Q2 YoY constant rates	H1/2016	Growth H1 YoY constant rates
Europe Margin	85 15.9%	-3% -110 bps	163 15.6%	-3% -90 bps
North America Margin	220 43.1%	0% 210 bps	453 41.7%	13% 240 bps
Asia-Pacific/Latin America/Africa	82	31%	151	23%
Margin	19.1%	360 bps	18.6%	300 bps
Corporate and Corporate R&D	-80	-19%	-151	-17%
Total EBIT Margin	307 20.8%	1% 40 bps	616 20.9%	10% 140 bps

2015 before special items

Margin growth at actual rates

For a detailed overview of special items please see the reconciliation tables on slides 36 - 37.

Fresenius Helios: Key Topics Q2/2016

• Excellent organic sales growth (+6%) in Q2 driven by admission increase
• Further sequential margin expansion (60 bps) reflects continued operational improvements
• Acquisition of 500-bed Niederberg hospital closed; consolidated as of May 1, 2016; €69 m sales in FY/15
• On track to meet FY/16 outlook

1 Organic sales growth

Fresenius Helios: Strong Sales Growth

€m	Q2/2016	Growth Q2 YoY	H1/2016	Growth H1 YoY
Established clinic portfolio	1,465	6%	2,898	4%
Acquisitions (consolidation <1 yr)	12	n.a.	14	n.a.
Total Sales	1,477	7%	2,912	5%

2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 36 - 37.

€m	Q2/2016	Growth Q2 YoY	H1/2016	Growth H1 YoY
Total sales	1,477	7%	2,912	5%
EBIT Established clinic portfolio	173	8%	332	8%
Margin	11.8%	20 bps	11.5%	40 bps
Acquisitions / Divestitures (consolidation / deconsolidation <1 yr) Margin	0 - %	0% - bps	0 - %	0% - bps
Total EBIT Margin	173 11.7%	8% 10 bps	332 11.4%	8% 30 bps

2015 before special items

For a detailed overview of special items please see the reconciliation tables on slides 36 - 37.

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

	H1/2016	H1/2015	Change
No. of hospitals1	112	111	1%
- Acute care clinics	88	87	1%
- Post-acute care clinics	24	24	0%
No. of beds1	34,766	34,076	2%
- Acute care clinics	29,654	28,914	3%
- Post-acute care clinics	5,112	5,162	-1%
Admissions
- Acute care (inpatient)	618,444	597,820	3%
Occupancy
- Post-acute care	80%	81%
Average length of stay (days)
Acute care2 -	6.4	6.5
- Post-acute care	26.3	26.7

1 December 31, 2015

2 German average (2014): 7.4

Fresenius Vamed: Key Topics Q2/16

• Organic sales growth (+1%) in Q2 reflects typical quarterly fluctuations of project business
• Continued strong order intake in Q2/16
• On track to meet FY/16 outlook

€m	Q2/ 2016	Growth	H1/ 2016	Growth
Project business	110	-10%	195	-3%
Service business	144	8%	277	6%
Total sales	254	0%	472	2%
Total EBIT	9	0%	16	0%
Order intake1	228	148%	465	64%

¹ Project business only

² versus December 31, 2015

Fresenius Group: Overview – Calculation of Noncontrolling Interest

€m	H1/2016	FY/2015
Earnings before tax and noncontrolling interest	1,719	3,262
Taxes	-491	-965
Noncontrolling interest, thereof	-473	-939
Fresenius Medical Care net income not attributable to Fresenius (Q2/16: ~69%)	-322	-641
Noncontrolling interest holders in Fresenius Medical Care (H1/16: US\$145 m according to Fresenius Medical Care's Financial Statements)	-130	-256
Noncontrolling interest holders in Fresenius Kabi (-€17 m), Fresenius Helios (-€1 m), Fresenius Vamed (-€1 m) and due to Fresenius Vamed's 23% external ownership (-€2 m)	-21	-42
Net income attributable to Fresenius SE & Co. KGaA	755	1,358

Cash Flow Development

	Operating CF		Capex	(net)	Free Cash Flow1
€m	Q2/2016	LTM Margin	Q2/2016	LTM Margin	Q2/2016	LTM Margin
	211	15.0%	-58	-5.1%	153	9.9%
	164	10.8%	-65	-5.1%	99	5.7%3
	19	8.7%	-2	-0.7%	17	8.0%
Corporate/Other	-3	n.a.	0	n.a.	-3	n.a.
Excl. FMC	391	13.3%2	-125	-4.8%	266	8.5%2
Group	996	12.1%	-348	-5.5%	648	6.6%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend

³ Understated: 6.6% excluding €55 million of capex commitments from acquisitions

€m	Q2/2016	LTM Margin	Q2/2015	LTM Margin	Growth YoY
Operating Cash Flow	996	12.1%	720	11.9%	38.3%
Capex (net)	-348	-5.5%	-332	-5.4%	-4.8%
Free Cash Flow (before acquisitions and dividends)	648	6.6%	388	6.5%	67.0%
Acquisitions (net)	-68		-61
Dividends	-545		-476
Free Cash Flow (after acquisitions and dividends)	35	3.1%	-149	0.1%	123.5%

	Operating CF		Capex	(net)	Free Cash Flow1
€m	H1/2016	LTM Margin	H1/2016	LTM Margin	H1/2016	LTM Margin
	335	15.0%	-125	-5.1%	210	9.9%
	230	10.8%	-102	-5.1%	128	5.7%3
	1	8.7%	-4	-0.7%	-3	8.0%
Corporate/Other	-4	n.a.	-3	n.a.	-7	n.a.
Excl. FMC	562	13.3%2	-234	-4.8%	328	8.5%2
Group	1,330	12.1%	-680	-5.5%	650	6.6%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend

³ Understated: 6.6% excluding €55 million of capex commitments from acquisitions

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 Q2 2016/ Q2 2015

The Group's U.S. GAAP financial results as of June 30, 2016 do not include special items, whereas the U.S. GAAP financial results as of June 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.

			integration	disposal gains	Q2/2015
	Q2/2015	efficiency	costs for	from two	according to
	before	program	acquired Rhön	HELIOS	U.S. GAAP (incl.
€m	special items	KABI	hospitals	hospitals	special items)
Sales	6,946				6,946
EBIT	971	-30	-6	0	935
Interest result	-165				-165
Net income before taxes	806	-30	-6	0	770
Income taxes	-234	9	2		-223
Net income	572	-21	-4	0	547
Noncontrolling interest	-222				-222
Net income attributable
to shareholders of Fresenius SE & Co. KGaA	350	-21	-4	0	325

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

Reconciliation according to U.S. GAAP H1 2016/ H1 2015

The Group's U.S. GAAP financial results as of June 30, 2016 do not include special items, whereas the U.S. GAAP financial results as of June 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.

			integration	disposal gains	H1/2015
	H1/2015	efficiency	costs for	from two	according to
	before	program	acquired Rhön	HELIOS	U.S. GAAP (incl.
€m	special items	KABI	hospitals	hospitals	special items)
Sales	13,429				13,429
EBIT	1,822	-40	-8	34	1,808
Interest result	-330				-330
Net income before taxes	1,429	-40	-8	34	1,478
Income taxes	-441	12	2		-427
Net income	1,051	-28	-6	34	1,051
Noncontrolling interest	-409				-409
Net income attributable
to shareholders of Fresenius SE & Co. KGaA	642	-28	-6	34	642

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

Share Information

Share key facts
Number of shares1	546,355,326
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 June 30, 2016

Financial Calendar/ Contact

Financial Calendar 2016

27.10.2016 Report on 3rd quarter 2016

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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