Quarterly Financial Report of Fresenius Group

applying United States Generally Accepted Accounting Principles (U.S. GAAP)

1st – 3rd Quarter and 3rd Quarter 2015

3 Fresenius Group fi gures at a glance

5 Fresenius share

6 Management Report

6 Health care industry
6 Results of operations, fi nancial position, assets and liabilities
6 Sales
7 Earnings
8 Investments
8 Cash fl ow
9 Asset and liability structure
9 Third quarter of 2015
11 Business segments
11 Fresenius Medical Care
13 Fresenius Kabi
14 Fresenius Helios
15 Fresenius Vamed
16 Employees
16 Research and development
16 Opportunities and risk report
17 Subsequent events
17 Rating
17 Outlook 2015

19 Consolidated fi nancial statements

19 Consolidated statement of income
19 Consolidated statement of comprehensive income
20 Consolidated statement of fi nancial position
21 Consolidated statement of cash fl ows
22 Consolidated statement of changes in equity
24 Consolidated segment reporting fi rst three quarters of 2015
25 Consolidated segment reporting third quarter of 2015

26 Notes

52 Financial Calendar

This Quarterly Financial Report was published on November 3, 2015.

FRESENIUS GROUP FIGURES AT A GLANCE

Fresenius is a global health care group providing products and services for dialysis, hospitals, and outpatient medical care. In addition, Fresenius focuses on hospital operations. We also manage projects and provide services for hospitals and other health care facilities. In 2014, Group sales were € 23.2 billion. As of September 30, 2015, more than 220,000 employees have dedicated themselves to the service of health in about 100 countries worldwide.

SALES, EARNINGS, AND CASH FLOW

€ in millions	Q3 / 2015	Q3 / 2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	6,940	5,978	16%	20,369	16,711	22%
EBIT 1	1,027	820	25%	2,849	2,223	28%
Net income 2	367	281	31%	1,009	768	31%
Earnings per share in € 2	0.68	0.52	31%	1.86	1.42	31%
Operating cash fl ow	900	945	-5%	2,151	1,695	27%

BALANCE SHEET AND INVESTMENTS

€ in millions	Sept. 30, 2015	Dec. 31, 2014	Change
Total assets	42,169	39,897	6%
Non-current assets	31,619	29,869	6%
Equity 3	17,170	15,483	11%
Net debt	14,262	14,279	0%
Investments 4	1,222	2,715	-55%

RATIOS

€ in millions	Q3 / 2015	Q3 / 2014	Q1 – 3 / 2015	Q1 – 3 / 2014
EBITDA margin 1	18.9%	17.6%	18.0%	17.4%
EBIT margin 1	14.8%	13.7%	14.0%	13.3%
Depreciation and amortization in % of sales	4.1%	3.9%	4.1%	4.1%
Operating cash fl ow in % of sales	13.0%	15.8%	10.6%	10.1%
Equity ratio (September 30 / December 31)			40.7%	38.8%
Net debt / EBITDA (September 30 / December 31) 5			2.93	3.41

Before special items

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

Equity including noncontrolling interest Investments in property, plant and equipment, and intangible assets, acquisitions (Q1 – 3 )

Pro forma acquisitions; before special items, 2.89 at LTM average exchange rates for both net debt and EBITDA

For a detailed overview of special items please see the reconciliation table on page 8.

INFORMATION BY BUSINESS SEGMENT

FRESENIUS MEDICAL CARE – Dialysis products, Dialysis services

US\$ in millions	Q3 /2015	Q3 /2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	4,231	4,113	3%	12,390	11,511	8%
EBIT	614	590	4%	1,665	1,591	5%
Net income 1	262	271	- 3%	713	710	0%
Operating cash fl ow	579	712	- 19%	1,412	1,274	11%
Investments / Acquisitions	311	870	- 64%	881	1,891	- 53%
R & D expenses	35	30	16%	100	91	10%
Employees, per capita on balance sheet date
(September 30 / December 31)				108,774	105,917	3%

FRESENIUS KABI – IV drugs, Clinical nutrition, Infusion therapy,

Medical devices / Transfusion technology

€ in millions	Q3 /2015	Q3 /2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	1,499	1,294	16%	4,431	3,760	18%
EBIT 2	301	223	35%	872	634	38%
Net income 3	170	120	42%	479	337	42%
Operating cash fl ow	235	217	8%	589	432	36%
Investments / Acquisitions	72	194	- 63%	249	341	- 27%
R & D expenses 2	82	70	17%	243	195	25%
Employees, per capita on balance sheet date (September 30 / December 31)				33,294	32,899	1%

FRESENIUS HELIOS – Hospital operations

€ in millions	Q3 /2015	Q3 /2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	1,393	1,362	2%	4,167	3,883	7%
EBIT 2	165	147	12%	472	397	19%
Net income 4	126	107	18%	352	286	23%
Operating cash fl ow	155	199	- 22%	386	404	- 4%
Investments / Acquisitions	59	115	- 49%	171	955	- 82%
Employees, per capita on balance sheet date
(September 30 / December 31)				69,762	68,852	1%

FRESENIUS VAMED – Projects and services for hospitals and other health care facilities

€ in millions	Q3 /2015	Q3 /2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	268	257	4%	731	655	12%
EBIT	14	12	17%	30	27	11%
Net income 5	10	8	25%	20	18	11%
Operating cash fl ow	0	18	- 100%	- 44	- 44	0%
Investments / Acquisitions	6	14	- 57%	13	18	- 28%
Order intake	192	378	- 49%	476	678	- 30%
Employees, per capita on balance sheet date (September 30 / December 31)				8,132	7,746	5%

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

Before special items

Net income attributable to shareholders of Fresenius Kabi AG; before special items Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items

Net income attributable to shareholders of VAMED AG

For a detailed overview of special items please see the reconciliation table on page 8.

FRESENIUS SHARE

The Fresenius share reached a new all-time high of € 66.48 in August. With an increase of 39% in the first nine months, the share significantly outperformed the DAX index. Fresenius SE & Co. KGaA was added to the EURO STOXX 50 on September 21.

FIRST THREE QUARTERS OF 2015

Global stock markets fell signifi cantly in the third quarter. The markets were affected by concerns that both the Chinese economy as well as growth in emerging markets may be slowing. Uncertainty over a possible increase in interest rates by the U.S. Federal Reserve (FED), which was once again postponed in September, also affected the world's equity markets. The IMF has modestly reduced its forecast for growth this year to 3.1% from 3.3%. Growth is slowing in Emerging Markets but picking up in advanced economies. The Eurozone economy will grow 1.4% this year, according

to the ECB. The FED expects the U.S. economy to expand 2.1%.

The Fresenius share continued to climb, unaffected by the monetary and economic conditions, and reached an alltime high of € 66.48 on August 18. The Fresenius share ended the third quarter at € 60, an increase of 39% over its closing price at the end of 2014. The DAX fell 1% in the same period and ended the third quarter at 9,660 points.

The Fresenius share was added to the EURO STOXX 50 index on September 21. The index includes 50 major listed companies in the euro zone from various industries.

Fresenius share DAX

KEY DATA OF THE FRESENIUS SHARE

	Q1 – 3 / 2015	2014	Change
Number of shares (September 30 / December 31)	544,999,890	541,532,600
Quarter-end quotation in €	60.00	43.16	39%
High in €	66.48	44.12	51%
Low in €	42.41	35.00	21%
Ø Trading volume (number of shares per trading day)	1,433,460	1,153,022	24%
Market capitalization, € in millions (September 30 / December 31)	32,700	23,373	40%

MANAGEMENT REPORT

Fresenius' strong growth trend continued with double-digit constant currency sales and earnings growth in the first nine months. All business segments contributed to the excellent financial results. Fresenius Kabi in particular stood out, benefiting from drug shortages and new product launches in the U.S. market. Fresenius raises its Group earnings guidance for 2015 and remains optimistic about the positive fundamentals in its respective markets.

CONTINUED STRONG SALES AND NET INCOME GROWTH – FRESENIUS RAISES GROUP EARNINGS GUIDANCE FOR 2015

	Q3 / 2015	at actual rates	in constant currency	Q1 – 3 / 2015	at actual rates	in constant currency
Sales	€ 6.9 bn	+ 16%	+ 7%	€ 20.4 bn	+ 22%	+ 11%
EBIT 1	€ 1,027 m	+ 25%	+ 12%	€ 2.8 bn	+ 28%	+ 14%
Net income 2	€ 367 m	+ 31%	+ 20%	€ 1,009 m	+ 31%	+ 19%

HEALTH CARE INDUSTRY

The health care sector is one of the world's largest industries. It is relatively insensitive to economic fl uctuations compared to other sectors and has posted above-average growth over the past years.

The main growth factors are rising medical needs deriving from aging populations, the growing number of chronically ill and multimorbid patients, stronger demand for innovative products and therapies, advances in medical technology and the growing health consciousness, which increases the demand for health care services and facilities.

In the emerging countries, drivers are the expanding availability and correspondingly greater demand for basic health care and increasing national incomes and hence higher spending on health care.

Health care structures are being reviewed and cost-cutting potential identifi ed in order to contain the steadily rising health care expenditures. However, such measures cannot compensate for the cost pressure. Market-based elements are increasingly being introduced into the health care system to create incentives for cost- and quality-conscious behavior. Overall treatment costs shall be reduced through improved quality standards. In addition, ever-greater importance is being placed on disease prevention and innovative reimbursement models linked to treatment quality standards.

RESULTS OF OPERATIONS, FINANCIAL POSITION, ASSETS AND LIABILITIES

SALES

Group sales increased by 22% (11% in constant currency) to € 20,369 million (Q1 − 3 / 2014: € 16,711 million). Organic sales growth was 6%. Acquisitions contributed 5%.

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

For a detailed overview of special items please see the reconciliation table on page 8.

EARNINGS

€ in millions	Q3 / 2015	Q3 / 2014	Q1 – 3 / 2015	Q1 – 3 / 2014
EBIT 1	1,027	820	2,849	2,223
Net income 2	367	281	1,009	768
Net income 3	357	276	999	810
Earnings per share in € 2	0.68	0.52	1.86	1.42
Earnings per share in € 3	0.66	0.51	1.84	1.50

EARNINGS

Group EBITDA1 increased by 26% (13% in constant currency) to € 3,674 million (Q1 − 3 / 2014: € 2,905 million). Group EBIT ¹ increased by 28% (14% in constant currency) to € 2,849 million (Q1 − 3 / 2014: € 2,223 million). The EBIT margin 1 was 14.0% (Q1 − 3 / 2014: 13.3%).

Group net interest increased to -€ 476 million (Q1 − 3 / 2014: -€ 431 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects.

The Group tax rate 1 was 29.6% (Q1 − 3 / 2014: 29.5%). Noncontrolling interest was € 661 million (Q1 − 3 / 2014: € 495 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income 3 before special items increased by 31% (19% in constant currency) to € 1,009 million (Q1 − 3 / 2014: € 768 million). Earnings per share 2 increased by 31% (19% in constant currency) to € 1.86 (Q1 − 3 / 2014: € 1.42).

Group net income 3 including special items increased by 23% (12% in constant currency) to € 999 million (Q1 − 3 / 2014: € 810 million). Earnings per share 3 increased by 23% (11% in constant currency) to € 1.84 (Q1 − 3 / 2014: € 1.50).

SALES BY REGION

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	Change at actual rates	Currency trans lations effects	Change at constant rates	Organic growth	Acquisitions / divestitures	% of total sales 4
North America	9,294	6,650	40%	25%	15%	9%	6%	46%
Europe	7,807	7,436	5%	0%	5%	3%	2%	38%
Asia-Pacifi c	2,032	1,547	31%	14%	17%	9%	8%	10%
Latin America	980	829	18%	1%	17%	13%	4%	5%
Africa	256	249	3%	3%	0%	0%	0%	1%
Total	20,369	16,711	22%	11%	11%	6%	5%	100%

SALES BY BUSINESS SEGMENT

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	Change at actual rates	Currency trans lations effects	Change at constant rates	Organic growth	Acquisitions / divestitures	% of total sales 4
Fresenius Medical Care	11,118	8,496	31%	18%	13%	7%	6%	55%
Fresenius Kabi	4,431	3,760	18%	10%	8%	9%	- 1%	22%
Fresenius Helios	4,167	3,883	7%	0%	7%	3%	4%	20%
Fresenius Vamed	731	655	12%	1%	11%	9%	2%	3%

Before special items

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

Net income attributable to shareholders of Fresenius SE & Co. KGaA 4 Calculated on the basis of contribution to consolidated sales

For a detailed overview of special items please see the reconciliation table on page 8.

RECONCILIATION

The Group's U.S. GAAP fi nancial results as of September 30, 2015 and September 30, 2014 comprise 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.

INVESTMENTS

Spending on property, plant and equipment was € 950 million (Q1 − 3 / 2014: € 854 million), primarily for the modernization

RECONCILIATION

and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was € 272 million (Q1 − 3 / 2014: € 1,861 million).

CASH FLOW

Operating cash fl ow increased by 27% to € 2,151 million (Q1 − 3 / 2014: € 1,695 million) with a margin of 10.6% (Q1 − 3 / 2014: 10.1%). Operating cash fl ow in the prior-year period was reduced by the US\$ 115 million1 payment for the W.R. Grace bankruptcy settlement.

€ in millions	Q1 – 3 / 2015 (before special items)	Kabi effi ciency program	integration costs for acquired Rhön hospitals	disposal gains from two HELIOS hospitals	Q1 – 3 / 2015 according to U.S. GAAP (incl. spe cial items)	Q1 – 3 / 2014 (before special items)	Fenwal integration costs	integration costs for acquired Rhön hospitals	disposal gains from two HELIOS hospitals	disposal gain from Rhön stake	Q1 – 3 / 2014 according to U.S. GAAP (incl. spe cial items)
Sales	20,369				20,369	16,711					16,711
EBIT	2,849	- 50	- 12	34	2,821	2,223	- 6	- 12	22	35	2,262
Interest result	- 476				- 476	- 431					- 431
Net income before taxes	2,373	- 50	- 12	34	2,345	1,792	- 6	- 12	22	35	1,831
Income taxes	- 703	16	2	0	- 685	- 529	2	3	- 1	- 1	- 526
Net income	1,670	- 34	- 10	34	1,660	1,263	- 4	- 9	21	34	1,305
Less noncontrolling interest	- 661				- 661	- 495					- 495
Net income attributable to shareholders of Fresenius
SE & Co. KGaA	1,009	- 34	- 10	34	999	768	- 4	- 9	21	34	810

€ in millions	Q3 / 2015 (before special items)	Kabi effi ciency program	integration costs for acquired Rhön hospitals	Q3 / 2015 according to U.S. GAAP (incl. spe cial items)	Q3 / 2014 (before special items)	Fenwal integration costs	integration costs for acquired Rhön hospitals	Q3 / 2014 according to U.S. GAAP (incl. spe cial items)
Sales	6,940			6,940	5,978			5,978
EBIT	1,027	- 10	- 4	1,013	820	- 3	- 4	813
Interest result	- 146			- 146	- 148			- 148
Net income before taxes	881	- 10	- 4	867	672	- 3	- 4	665
Income taxes	- 262	4	0	- 258	- 197	1	1	- 195
Net income	619	- 6	- 4	609	475	- 2	- 3	470
Less noncontrolling interest	- 252			- 252	- 194			- 194
Net income attributable to shareholders of Fresenius SE & Co. KGaA	367	- 6	- 4	357	281	- 2	- 3	276

INVESTMENTS BY BUSINESS SEGMENT

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	thereof property, plant and equipment	thereof acquisitions	Change	% of total
Fresenius Medical Care	791	1,396	581	210	- 43%	65%
Fresenius Kabi	249	341	212	37	- 27%	20%
Fresenius Helios	171	955	142	29	- 82%	14%
Fresenius Vamed	13	18	9	4	- 28%	1%
Corporate / Other	- 2	5	6	- 8	- 140%	0%
Total	1,222	2,715	950	272	- 55%	100%

Net capital expenditure increased to € 932 million (Q1 − 3 / 2014: € 848 million). Free cash fl ow before acquisitions and dividends improved to € 1,219 million (Q1 − 3 / 2014: € 847 million). Free cash fl ow after acquisitions and dividends increased to € 574 million (Q1 − 3 / 2014: - € 1,154 million).

ASSET AND LIABILITY STRUCTURE

The Group's total assets increased by 6% (2% in constant currency) to € 42,169 million (Dec. 31, 2014: € 39,897 million). Current assets grew by 5% (3% in constant currency) to € 10,550 million (Dec. 31, 2014: € 10,028 million). Non-current assets increased by 6% (1% in constant currency) to € 31,619 million (Dec. 31, 2014: € 29,869 million).

Total shareholders' equity increased by 11% (7% in constant currency) to € 17,170 million (Dec. 31, 2014: € 15,483 million). The equity ratio increased to 40.7% (Dec. 31, 2014: 38.8%).

Group debt decreased by 1% (- 5% in constant currency) to € 15,237 million (Dec. 31, 2014: € 15,454 million). As of September 30, 2015, the net debt / EBITDA ratio was 2.93 1 (2.89 1 at LTM average exchange rates for both net debt and EBITDA).

THIRD QUARTER OF 2015

In the third quarter of 2015, Group sales increased by 16% (7% in constant currency) to € 6,940 million (Q3 / 2014: € 5,978 million). Organic sales growth was 6%. Acquisitions

CASH FLOW STATEMENT (SUMMARY)

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Net income	1,660	1,305	27%
Depreciation and amortization	825	682	21%
Change in accruals for pensions	46	14	--
Cash fl ow	2,531	2,001	26%
Change in working capital	- 380	- 306	- 24%
Operating cash fl ow	2,151	1,695	27%
Property, plant and equipment	-950	- 863	- 10%
Proceeds from the sale of property, plant and equipment	18	15	20%
Cash fl ow before acquisitions and dividends	1,219	847	44%
Cash used for acquisitions, net	-63	- 1,480	96%
Dividends paid	-582	- 521	- 12%
Free cash fl ow paid after acquisitions and dividends	574	- 1,154	150%
Cash provided by / used for fi nancing activities	-791	1,284	- 162%
Effect of exchange rates on change in cash and cash equivalents	17	41	- 59%
Net change in cash and cash equivalents	-200	171	--

contributed 2%, while divestitures reduced sales by 1%. Group EBIT 1 increased by 25% (12% in constant currency) to € 1,027 million (Q3 / 2014: € 820 million), the EBIT margin 1 was 14.8% (Q3 / 2014: 13.7%).

Group net interest of -€ 146 million was slightly below the prior-year level (Q3 / 2014: - € 148 million). More favorable fi nancing terms offset negative currency translation effects. The Group tax rate was 29.7% (Q3 / 2014: 29.3%).

Group net income 2 before special items increased by 31% (20% in constant currency) to € 367 million (Q3 / 2014: € 281 million). Earnings per share 3 increased by 31% (19% in constant currency) to €0.68 (Q3 / 2014: €0.52).

Group net income 2 including special items increased by 29% (18% in constant currency) to € 357 million (Q3 / 2014: € 276 million). Earnings per share 2 increased by 29% (18% in constant currency) to €0.66 (Q3 / 2014: €0.51).

Operating cash fl ow in the third quarter of 2015 reached a very strong € 900 million, but could not quite match the exceptional prior-year quarter (Q3 / 2014: € 945 million). The same applies to the cash fl ow margin of 13.0% (Q3 / 2014: 15.8%).

Investments in property, plant and equipment increased to € 339 million (Q3 / 2014: € 332 million). Acquisition spending was € 78 million (Q3 / 2014: € 645 million).

Before special items

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

For a detailed overview of special items please see the reconciliation table on page 8.

BUSINESS SEGMENTS

FRESENIUS MEDICAL CARE

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. As of September 30, 2015, Fresenius Medical Care was treating 290,250 patients in 3,402 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the fi eld of care coordination.

US\$ in millions	Q3 / 2015	Q3 / 2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	4,231	4,113	3%	12,390	11,511	8%
EBITDA	793	767	3%	2,202	2,105	5%
EBIT	614	590	4%	1,665	1,591	5%
Net income 1	262	271	- 3%	713	710	0%
Employees (Sept. 30 / Dec. 31)				108,774	105,917	3%

▶ Strong Q3 sales growth in North America
▶ Adverse currency developments and special items weigh on business outside North America
▶ 2015 outlook confirmed

FIRST THREE QUARTERS OF 2015

Sales increased by 8% (13% in constant currency) to US\$ 12,390 million (Q1 − 3 / 2014: US\$ 11,511 million). Organic sales growth was 7%. Acquisitions contributed 7%, while divestitures reduced sales by 1%. Currency effects reduced sales by -5%.

Health Care services sales (dialysis services and care coordination) increased by 11% (15% in constant currency) to US\$ 9,929 million (Q1 − 3 / 2014: US\$ 8,928 million). Dialysis product sales decreased by 5% (increased by 7% in constant currency) to US\$ 2,461 million (Q1 − 3 / 2014: US\$ 2,583 million).

In North America sales increased by 15% to US\$ 8,730 million (Q1 − 3 / 2014: US\$ 7,624 million). Health Care services sales grew by 15% to US\$ 8,087 million (Q1 − 3 / 2014: US\$ 7,015 million). Dialysis product sales increased by 6% to US\$ 643 million (Q1 − 3 / 2014: US\$ 609 million).

Sales outside North America decreased by 5% (increased by 12% in constant currency) to US\$ 3,639 million (Q1 − 3 / 2014: US\$ 3,843 million). Regional fi nancial results were impacted by special items 2 . Health Care services sales decreased by 4% (increased by 15% in constant currency) to US\$ 1,842 million (Q1 − 3 / 2014: US\$ 1,913 million). Dialysis product sales decreased by 7% (increased by 8% in constant currency) to US\$ 1,797 million (Q1 − 3 / 2014: US\$ 1,930 million).

EBIT increased by 5% (10% in constant currency) to US\$ 1,665 million (Q1 − 3 / 2014: US\$ 1,591 million). The EBIT margin was 13.4% (Q1 − 3 / 2014: 13.8%). Adjusted for special items 3 EBIT increased by 5% to US\$ 1,683 million.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA of US\$ 713 million was at prioryear level (Q1 − 3 / 2014: US\$ 710 million). Net income attributable to non-controlling interest increased by 41% to US\$ 207 million, mainly due to the strong earnings development in North America. In constant currency net income increased by 6%. Net income excluding special items 4 increased by 3% to US\$ 735 million.

Operating cash fl ow increased by 11% to US\$ 1,412 million (Q1 − 3 / 2014: US\$ 1,274 million). Operating cash fl ow in the prior-year period was reduced by the US\$ 115 million 5 payment for the W.R. Grace bankruptcy settlement. The cash fl ow margin increased to 11.4% (Q1 − 3 / 2014: 11.1%).

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

Divestiture of dialysis business in Venezuela and European pharmaceutical business

2014 before closing of manufacturing plant (-US\$ 7 million after tax)

See Annual Report 2014, page 152 f.

²⁰¹⁵ before divestiture of dialysis business in Venezuela (-US\$ 26 million before tax) and European pharmaceutical business (US\$ 8 million before tax);

²⁰¹⁴ before closing of manufacturing plant (-US\$ 11 million before tax) 2015 before divestiture of dialysis business in Venezuela (-US\$ 27 million after tax) and European pharmaceutical business (US\$ 5 million after tax);

THIRD QUARTER OF 2015

In the third quarter of 2015, sales increased by 3% (9% in constant currency) to US\$ 4,231 million (Q3 / 2014: US\$ 4,113 million).

EBIT increased by 4% (8% in constant currency) to US\$ 614 million (Q3 / 2014: US\$ 590 million). The EBIT margin increased to 14.5% (Q3 / 2014: 14.3%). EBIT excluding special items 1 increased by 5% to US\$632 million.

Net income decreased by 3% (- 1% in constant currency) to US\$ 262 million (Q3 / 2014: US\$ 271 million). Net income excluding special items 2 increased by 2% to US\$ 284 million.

In the third quarter of 2015, operating cash fl ow reached a very strong US\$ 579 million, but could not match the exceptional prior-year quarter (Q3 / 2014: US\$ 712 million). The same applies to the cash fl ow margin of 13.7% (Q3 / 2014: 17.3%).

Please see page 17 of the Management Report for the 2015 outlook of Fresenius Medical Care.

For further information, please see Fresenius Medical Care's Investor News at www.freseniusmedicalcare.com.

2015 before divestiture of dialysis business in Venezuela (-US\$ 26 million before tax) and European pharmaceutical

2015 before divestiture of dialysis business in Venezuela (-US\$ 27 million after tax) and European pharmaceutical business (US\$ 5 million after tax); 2014 before closing of manufacturing plant (-US\$ 7 million after tax)

business (US\$ 8 million before tax); 2014 before closing of manufacturing plant (-US\$ 11 million before tax)

FRESENIUS KABI

Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

€ in millions	Q3 / 2015	Q3 / 2014	Change	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Sales	1,499	1,294	16%	4,431	3,760	18%
EBITDA 1	369	272	36%	1,060	785	35%
EBIT 1	301	223	35%	872	634	38%
Net income 2	170	120	42%	479	337	42%
Employees (Sept. 30 / Dec. 31)				33,294	32,899	1%

▶ 10% organic sales growth in Q3
▶ 19% constant currency EBIT ¹ growth in Q3
▶ 2015 outlook: organic sales growth of ~ 8% and constant currency EBIT ¹ growth of 19% to 22% expected

FIRST THREE QUARTERS OF 2015

Sales increased by 18% (8% in constant currency) to € 4,431 million (Q1 − 3 / 2014: € 3,760 million). Organic sales growth was 9%. Acquisitions contributed 1% while divestitures reduced sales by 2%. Positive currency translation effects (10%) were mainly related to the Euro's depreciation against the U.S. dollar and the Chinese yuan.

Sales in Europe grew by 2% (organic growth: 4%) to € 1,566 million (Q1 − 3 / 2014: € 1,538 million). Sales in North America increased by 39% (organic growth: 16%) to € 1,555 million (Q1 − 3 / 2014: € 1,118 million). North American sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacifi c sales increased by 19% (organic growth: 4%) to € 862 million (Q1 − 3 / 2014: € 723 million). Sales in Latin America/Africa grew by 18% (organic growth: 12%) to € 448 million (Q1 − 3 / 2014: € 381 million).

EBIT ¹ increased by 38% (19% in constant currency) to € 872 million (Q1 − 3 / 2014: € 634 million). The EBIT margin 1 was 19.7% (Q1 − 3 / 2014: 16.9%).

Net income 2 increased by 42% (23% in constant currency) to € 479 million (Q1 − 3 / 2014: € 337 million).

Operating cash fl ow increased by 36% to € 589 million (Q1 − 3 / 2014: € 432 million) with a margin of 13.3% (Q1 − 3 / 2014: 11.5%).

Fresenius Kabi's initiatives to increase production effi ciency and streamline administrative structures are well on track. Costs of € 50 million before tax were incurred in the fi rst nine months of 2015 (Q3 / 2015: € 10 million). The remainder of approx. € 50 million will be recorded in Q4 / 2015. These costs are reported in the Group segment Corporate / Other.

THIRD QUARTER OF 2015

In the third quarter of 2015, sales increased by 16% (9% in constant currency) to € 1,499 million (Q3 / 2014: € 1,294 million). Organic sales growth was 10%.

EBIT ¹ increased by 35% (19% in constant currency) to € 301 million (Q3 / 2014: € 223 million). The EBIT margin 1 was 20.1% (Q3 / 2014: 17.2%).

Net income 2 increased by 42% (25% in constant currency) to € 170 million (Q3 / 2014: € 120 million).

Operating cash fl ow increased to € 235 million (Q3 / 2014: € 217 million) with a margin of 15.7% (Q3 / 2014: 16.8%).

Please see page 17 of the Management Report for the 2015 outlook of Fresenius Kabi.

Before special items Net income attributable to shareholders of Fresenius Kabi AG; before special items

For a detailed overview of special items please see the reconciliation table on page 8.

FRESENIUS HELIOS

Fresenius Helios is Germany's largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.5 million patients per year, thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

€ in millions	Q3 / 2015	Q3 / 2014	Change	Q1 – 3/ 2015	Q1 – 3/ 2014	Change
Sales	1,393	1,362	2%	4,167	3,883	7%
EBITDA 1	213	190	12%	612	534	15%
EBIT 1	165	147	12%	472	397	19%
Net income 2	126	107	18%	352	286	23%
Employees (Sept. 30 / Dec. 31)				69,762	68.852	1%

▶ 12% EBIT ¹ growth in Q3
▶ 20 bps sequential EBIT margin 1 increase
▶ 2015 outlook confirmed

FIRST THREE QUARTERS OF 2015

Sales increased by 7% to € 4,167 million (Q1 − 3 / 2014: € 3,883 million). Organic sales growth was 3% (Q1 − 3 / 2014: 4%). Acquisitions contributed 5% while divestitures reduced sales by 1%.

EBIT 1 grew by 19% to € 472 million (Q1 − 3 / 2014: € 397 million). The EBIT margin 1 increased to 11.3% (Q1 − 3 / 2014: 10.2%).

Net income 2 increased by 23% to € 352 million (Q1 − 3 / 2014: € 286 million).

Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 3% to € 3,970 million (Q1 − 3 / 2014: € 3,861 million). EBIT ¹ increased by 17% to € 463 million (Q1 − 3 / 2014: € 395 million). The EBIT margin 1 increased to 11.7% (Q1 − 3 / 2014: 10.2%). Sales of the acquired hospitals consolidated for less than one year were € 197 million. EBIT ¹ was € 9 million with a margin of 4.6%.

The integration of the hospitals acquired from Rhön-Klinikum AG remains well on track. Integration costs were € 12 million in the fi rst nine months of 2015 (Q3 / 2015: € 4 million) taking the total to date to € 63 million. Fresenius Helios does not expect any further integration costs. Amount (€ 85 million p.a.) and timing (spring 2016) of targeted near-term cost synergies are confi rmed.

THIRD QUARTER OF 2015

In the third quarter of 2015, sales increased by 2% to € 1,393 million (Q3 / 2014: € 1,362 million), organic sales growth was 2% (Q3 / 2014: 6%).

EBIT ¹ increased by 12% to € 165 million (Q3 / 2014: € 147 million). Sequentially, the EBIT margin 1 increased by 20 bps to 11.8%.

Net income 2 increased by 18% to € 126 million (Q3 / 2014: € 107 million).

Please see page 17 of the Management Report for the 2015 outlook of Fresenius Helios.

Before special items

Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items

For a detailed overview of special items please see the reconciliation table on page 8.

FRESENIUS VAMED

Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.

€ in millions	Q3 / 2015	Q3 / 2014	Change	Q1 – 3/ 2015	Q1 – 3/ 2014	Change
Sales	268	257	4%	731	655	12%
EBITDA	17	15	13%	38	35	9%
EBIT	14	12	17%	30	27	11%
Net income 1	10	8	25%	20	18	11%
Employees (Sept. 30 / Dec. 31)				8,132	7,746	5%

▶ Q3 organic sales growth driven by strong service business
▶ Q3 order intake € 192 million
▶ 2015 outlook: organic sales growth now projected to reach 5% to 10%, EBIT growth expectation of 5% to 10% confirmed

FIRST THREE QUARTERS OF 2015

Sales increased by 12% (11% in constant currency) to € 731 million (Q1 − 3 / 2014: € 655 million). Organic sales growth was 9%. Acquisitions contributed 2%. Sales in the project business increased by 9% to € 333 million (Q1 − 3 / 2014: € 306 million). Sales in the service business grew by 14% to € 398 million (Q1 − 3 / 2014: € 349 million).

EBIT grew by 11% to € 30 million (Q1 − 3 / 2014: € 27 million). The EBIT margin remained unchanged at 4.1% (Q1 − 3 / 2014: 4.1%).

Net income 1 grew by 11% to € 20 million (Q1 − 3 / 2014: € 18 million).

Order intake reached a very strong € 476 million (Q1 − 3 / 2014: € 678 million). The prior-year period was boosted by the major project for the modernization of the University Hospital of Schleswig-Holstein / Germany. As of September 30, 2015, order backlog was € 1,528 million (Dec. 31, 2014: € 1,398 million).

THIRD QUARTER OF 2015

In the third quarter of 2015, sales increased by 4% to € 268 million (Q3 / 2014: € 257 million). Organic sales growth was 4%.

EBIT increased by 17% to € 14 million (Q3 / 2014: € 12 million). Sequentially, the EBIT margin increased by 170 bps to 5.2%.

Net income 1 increased by 25% to € 10 million (Q3 / 2014: € 8 million).

Please see page 17 of the Management Report for the 2015 outlook of Fresenius Vamed.

EMPLOYEES

As of September 30, 2015, the number of employees increased by 2% to 220,853 (Dec. 31, 2014: 216,275).

EMPLOYEES BY BUSINESS SEGMENT

Number of employees	Sept. 30, 2015	Dec 31, 2014	Change
Fresenius Medical Care	108,774	105,917	3%
Fresenius Kabi	33,294	32,899	1%
Fresenius Helios	69,762	68,852	1%
Fresenius Vamed	8,132	7,746	5%
Corporate / Other	891	861	3%
Total	220,853	216,275	2%

RESEARCH AND DEVELOPMENT

Product and process development as well as the improvement of therapies are at the core of our growth strategy. Fresenius focuses its R & D efforts on its core competencies in the following areas:

▶ Dialysis
▶ Generic IV drugs
▶ Infusion and nutrition therapies
▶ Medical devices

Apart from new products, we are concentrating on developing optimized or completely new therapies, treatment methods, and services.

RESEARCH AND DEVELOPMENT EXPENSES BY BUSINESS SEGMENT

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	Change
Fresenius Medical Care	90	67	34%
Fresenius Kabi	243	195	25%
Fresenius Helios	–	–	--
Fresenius Vamed	0	0
Corporate / Other	4	1	--
Total	337	263	28%

DIALYSIS

The complex interactions and side effects that lead to kidney failure are better explored today than ever before. Technological advances develop in parallel with medical insights to improve the possibilities for treating patients. Our R & D activities at Fresenius Medical Care aim to translate new

insights into novel or improved developments and to bring them to market as quickly as possible, and thus make an important contribution towards rendering the treatment of patients increasingly comfortable, safe, and individualized.

INFUSION THERAPIES, CLINICAL NUTRITION, GENERIC IV DRUGS, AND MEDICAL DEVICES

Fresenius Kabi's research and development activities concentrate on products for the therapy and care of critically and chronically ill patients. Our focus is on areas with high medical needs, such as in the treatment of oncology patients. Our products help to support medical advancements in acute and post-acute care and improve the patients' quality of life. We develop new products in areas such as clinical nutrition. In addition, we develop generic drug formulations ready to launch at the time of market formation as well as new formulations for non-patented drugs. Our medical devices signifi cantly contribute to a safe and effective application of infusion solutions and clinical nutrition. In transfusion technology our R & D focus is on medical devices and disposables to support the secure, user-friendly, and effi cient production of blood products.

OPPORTUNITIES AND RISK REPORT

Compared to the presentation in the 2014 annual report, there have been no material changes in Fresenius' overall opportunities and risk situation in the third quarter of 2015.

In the ordinary course of Fresenius Group's operations, the Fresenius Group is subject to litigation, arbitration and investigations relating to various aspects of its business. The Fresenius Group regularly analyzes current information about such claims for probable losses and provides accruals for such matters, including estimated expenses for legal services, as appropriate.

In addition, we report on legal proceedings, currency and interest risks on pages 41 to 48 in the Notes of this report.

SUBSEQUENT EVENTS

There were no signifi cant changes in the Fresenius Group's operating environment following the end of the third quarter of 2015. No other events of material importance on the assets and liabilities, fi nancial position, and result of operations of the Group have occured after the close of the third quarter of 2015.

RATING

Fresenius is covered by the rating agencies Moody's, Standard & Poor's and Fitch.

The following table shows the company rating of Fresenius SE & Co. KGaA:

	Standard & Poor's	Moody's	Fitch
Company rating	BBB -	Ba1	BB +
Outlook	stable	stable	stable

OUTLOOK 2015

FRESENIUS GROUP

Based on the Group's excellent fi nancial results in the fi rst nine months of 2015 and strong prospects for the remainder of the year, Fresenius raises its 2015 Group earnings guidance. Net income 1 is now expected to grow by 20% to 22% in constant currency. Previously, Fresenius expected net income 1 growth of 18% to 21% in constant currency. The company fully confi rms its Group sales guidance. Sales are expected to increase by 8% to 10% in constant currency.

The net debt / EBITDA2 ratio is now expected to be below 3.0 at the end of 2015. Previously, Fresenius expected the ratio to be approximately 3.0.

FRESENIUS MEDICAL CARE

Fresenius Medical Care confi rms its outlook for 2015. The company expects sales to grow by 5% to 7%, which equals a growth rate of 10% to 12% in constant currency. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0% to 5% in 2015.

The outlook is based on current exchange rates. Savings from the global effi ciency program are included, while earnings contributions from potential acquisitions are not. The outlook refl ects further operating cost investments within the Care Coordination segment.

FRESENIUS KABI ³

Fresenius Kabi raises its outlook for 2015 and now expects organic sales growth of ~8% and constant currency EBIT ⁴ growth in the range of 19% to 22% with an implied EBIT margin 4 of approximately 20.0%. Previously, Fresenius Kabi projected organic sales growth of 6% to 8% and constant currency EBIT ⁴ growth in the range of 18% to 21% with an implied EBIT margin 4 in the range of 19.0% to 20.0%.

FRESENIUS HELIOS ⁵

Fresenius Helios confi rms its outlook for 2015, projecting organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT 4 is expected to increase to € 630 to € 650 million.

FRESENIUS VAMED

Based on the strong sales development in the fi rst nine months of 2015, Fresenius Vamed narrows its 2015 organic sales growth outlook to a range of 5% to 10%. Previously, Fresenius Vamed expected single-digit organic sales growth. Fresenius Vamed fully confi rms its EBIT outlook and projects EBIT growth of 5% to 10%.

Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~ € 12 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the effi ciency program at Fresenius Kabi (~€ 100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€ 34 million before tax); 2014 before special items

At average exchange rates for the last twelve months for both net debt and EBITDA; without major unannounced acquisitions; before special items Fresenius Kabi's outlook excludes ~ € 100 million costs before tax for the effi ciency program. For segment reporting purposes, these costs will not be reported in the Fresenius Kabi segment but as special items in the Group segment Corporate / Other.

4 Before special items

Fresenius Helios' outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~ € 12 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€ 34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate / Other.

INVESTMENTS

The Group plans to invest around 6% of sales in property, plant and equipment.

EMPLOYEES

The number of employees in the Group will continue to rise in the future as a result of the expected expansion. We expect the number of employees to be above 222,000 in 2015 (December 31, 2014: 216,275). The number of employees is expected to increase in all business segments.

RESEARCH AND DEVELOPMENT

Our R & D activities will continue to play a key role in securing the Group's long-term growth through innovations and new

GROUP FINANCIAL OUTLOOK 2015

therapies. We plan to increase the Group's R & D spending in 2015. About 4% to 5% of our product sales will be reinvested in research and development.

Market-oriented research and development with strict time-to-market management processes is crucial for the success of new products. We continually review our R & D results using clearly defi ned milestones. Innovative ideas, product development, and therapies with a high level of quality will continue to be the basis for future market-leading positions. Given the continued cost-containment efforts in the health care sector, cost effi ciency combined with a strong quality focus is acquiring ever-greater importance in product development, and in the improvement of treatment concepts.

	Previous guidance	New guidance
Sales, growth (in constant currency)	8% – 10%	confi rmed
Net income 1 , growth (in constant currency)	18% – 21%	20% – 22%

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~ € 12 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the effi ciency program at Fresenius Kabi (~€ 100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€ 34 million before tax); 2014 before special items

OUTLOOK 2015 BY BUSINESS SEGMENT

		Previous guidance	New guidance
Fresenius Medical Care 1	Sales growth	5% – 7%	confi rmed
	Net income 2 growth	0% – 5%	confi rmed
Fresenius Kabi 3	Sales growth (organic)	6% – 8%	~ 8%
	EBIT growth 5 (in constant currency)	18% – 21%	19% – 22%
Fresenius Helios 4	Sales growth (organic)	3% – 5%	confi rmed
	EBIT 5	€ 630 – 650 m	confi rmed
Fresenius Vamed	Sales growth (organic)	Single-digit %	5% – 10%
	EBIT, growth	5% – 10%	confi rmed

The outlook is based on current exchange rates. Savings from the global effi ciency program are included, while earnings contributions from potential acquisitions

are not. The outlook refl ects further operating cost investments within the Care Coordination segment.

Net income attributable to the shareholders of Fresenius Medical Care AG & Co. KGaA Fresenius Kabi's outlook excludes ~ € 100 million costs before tax for the effi ciency program

Fresenius Helios' outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~ € 12 million before tax) and disposal gains from the

divestment of two HELIOS hospitals (€ 34 million before tax) Before special items

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

€ in millions	Q3 / 2015	Q3 / 2014	Q1 – 3 / 2015	Q1 – 3 / 2014
Sales	6,940	5,978	20,369	16,711
Cost of sales	- 4,748	- 4,206	- 14,128	- 11,775
Gross profi t	2,192	1,772	6,241	4,936
Selling, general and administrative expenses	- 1,065	- 866	- 3,083	- 2,411
Research and development expenses	- 114	- 93	- 337	- 263
Operating income (EBIT)	1,013	813	2,821	2,262
Net interest	- 146	- 148	- 476	- 431
Income before income taxes	867	665	2,345	1,831
Income taxes	- 258	- 195	- 685	- 526
Net income	609	470	1,660	1,305
Less noncontrolling interest	252	194	661	495
Net income attributable to shareholders of Fresenius SE & Co. KGaA	357	276	999	810

Earnings per ordinary share in €	0.66	0.51	1.84	1.50
Fully diluted earnings per ordinary share in €	0.65	0.51	1.82	1.49

The following notes are an integral part of the unaudited condensed interim fi nancial statements.

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

€ in millions	Q3 / 2015	Q3 / 2014	Q1 – 3 / 2015	Q1 – 3 / 2014
Net income	609	470	1,660	1,305
Other comprehensive income (loss)
Foreign currency translation	- 276	746	609	777
Cash flow hedges	14	- 20	39	- 2
Change of fair value of available for sale financial assets	–	0	–	- 23
Actuarial gains / losses on defined benefit pension plans	8	- 10	- 10	- 6
Income taxes related to components of other comprehensive income (loss)	- 6	- 10	- 28	- 14
Other comprehensive income (loss), net	- 260	706	610	732
Total comprehensive income	349	1,176	2,270	2,037
Comprehensive income attributable to noncontrolling interest subject to put provisions	44	73	156	120
Comprehensive income attributable to noncontrolling interest not subject to put provisions	101	499	892	795
Comprehensive income attributable to shareholders of Fresenius SE & Co. KGaA	204	604	1,222	1,122

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

ASSETS

€ in millions	September 30, 2015	December 31, 2014
Cash and cash equivalents	975	1,175
Trade accounts receivable, less allowance for doubtful accounts	4,645	4,235
Accounts receivable from and loans to related parties	65	36
Inventories	2,750	2,333
Other current assets	1,696	1,843
Deferred taxes	419	406
I. Total current assets	10,550	10,028
Property, plant and equipment	7,093	6,776
Goodwill	21,084	19,868
Other intangible assets	1,486	1,446
Other non-current assets	1,593	1,458
Deferred taxes	363	321
II. Total non-current assets	31,619	29,869
Total assets	42,169	39,897

LIABILITIES AND SHAREHOLDERS' EQUITY

€ in millions	September 30, 2015	December 31, 2014
Trade accounts payable	1,029	1,052
Short-term accounts payable to related parties	70	5
Short-term accrued expenses and other short-term liabilities	4,551	4,164
Short-term debt	422	230
Short-term loans from related parties	6	3
Current portion of long-term debt and capital lease obligations	559	753
Current portion of Senior Notes	250	682
Short-term accruals for income taxes	152	161
Deferred taxes	63	54
A. Total short-term liabilities	7,102	7,104
Long-term debt and capital lease obligations, less current portion	5,864	5,977
Senior Notes, less current portion	7,293	6,977
Convertible bonds	843	832
Long-term accrued expenses and other long-term liabilities	811	661
Pension liabilities	1,144	1,099
Long-term accruals for income taxes	190	216
Deferred taxes	893	867
B. Total long-term liabilities	17,038	16,629
I. Total liabilities	24,140	23,733
II. Noncontrolling interest subject to put provisions	859	681
A. Noncontrolling interest not subject to put provisions	6,786	6,148
Subscribed capital	545	542
Capital reserve	3,080	3,018
Other reserves	6,655	5,894
Accumulated other comprehensive income (loss)	104	- 119
B. Total Fresenius SE & Co. KGaA shareholders' equity	10,384	9,335
III. Total shareholders' equity	17,170	15,483
Total liabilities and shareholders' equity	42,169	39,897

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Operating activities
Net income	1,660	1,305
Adjustments to reconcile net income to cash and cash equivalents provided by operating activities
Depreciation and amortization	825	682
Gain on sale of investments and divestitures	- 39	- 55
Change in deferred taxes	- 85	- 18
Gain / loss on sale of fixed assets	–	–
Changes in assets and liabilities, net of amounts from businesses acquired or disposed of
Trade accounts receivable, net	- 376	- 143
Inventories	- 375	- 148
Other current and non-current assets	199	- 54
Accounts receivable from / payable to related parties	83	- 12
Trade accounts payable, accrued expenses and other short-term and long-term liabilities	306	168
Accruals for income taxes	- 47	- 30
Net cash provided by operating activities	2,151	1,695
Investing activities
Purchase of property, plant and equipment	- 950	- 863
Proceeds from sales of property, plant and equipment	18	15
Acquisitions and investments, net of cash acquired and net purchases of intangible assets	- 239	- 1,647
Proceeds from sale of investments and divestitures	176	167
Net cash used in investing activities	- 995	- 2,328
Financing activities
Proceeds from short-term loans	504	405
Repayments of short-term loans	- 275	- 889
Proceeds from short-term loans from related parties	–	–
Repayments of short-term loans from related parties	–	–
Proceeds from long-term debt and capital lease obligations	354	2,201
Repayments of long-term debt and capital lease obligations	- 996	- 2,785
Proceeds from the issuance of Senior Notes	269	1,420
Repayments of liabilities from Senior Notes	- 729	0
Proceeds from the issuance of convertible bonds	0	900
Changes of accounts receivable securitization program	- 41	- 69
Proceeds from the exercise of stock options	132	102
Dividends paid	- 582	- 521
Change in noncontrolling interest	- 4	- 1
Exchange rate effect due to corporate financing	- 5	–
Net cash used in / provided by fi nancing activities	- 1,373	763
Effect of exchange rate changes on cash and cash equivalents	17	41
Net decrease / increase in cash and cash equivalents	- 200	171
Cash and cash equivalents at the beginning of the reporting period	1,175	864
Cash and cash equivalents at the end of the reporting period	975	1,035

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

		Subscribed Capital		Reserves
	Number of ordinary shares in thousand 1	Amount € in thousands	Amount € in millions	Capital reserve € in millions	Other reserves € in millions
As of December 31, 2013	539,085	539,085	539	2,955	5,052
Proceeds from the exercise of stock options Compensation expense related to stock options	2,119	2,119	2	56 10
Dividends paid					- 225
Purchase of noncontrolling interest
not subject to put provisions
Change in fair value of noncontrolling interest subject to put provisions				- 10
Comprehensive income (loss)
Net income					810
Other comprehensive income (loss) Cash flow hedges
Change of fair value of available for sale financial assets
Foreign currency translation
Actuarial losses on defined benefit pension plans
Comprehensive income					810
As of September 30, 2014	541,204	541,204	541	3,011	5,637
As of December 31, 2014	541,533	541,533	542	3,018	5,894
Proceeds from the exercise of stock options	3,467	3,467	3	87
Compensation expense related to stock options				13
Vested subsidiary stock incentive plans				- 1
Dividends paid					- 238
Purchase of noncontrolling interest not subject to put provisions
Change in fair value of noncontrolling interest subject to put provisions				- 37
Comprehensive income (loss)
Net income					999
Other comprehensive income (loss)
Cash flow hedges
Change of fair value of available for sale financial assets
Foreign currency translation Actuarial losses on defined benefit pension plans
Comprehensive income					999
As of September 30, 2015	545,000	545,000	545	3,080	6,655

Figures as of December 31, 2013 were adjusted due to the stock split in 2014.

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

	Accumulated other com prehensive income (loss) € in millions	Total Fresenius SE & Co. KGaA shareholders' equity € in millions	Non controlling interest not subject to put provisions € in millions	Total shareholders' equity € in millions
As of December 31, 2013	- 351	8,195	5,065	13,260
Proceeds from the exercise of stock options		58	44	102
Compensation expense related to stock options		10	2	12
Dividends paid		- 225	- 213	- 438
Purchase of noncontrolling interest
not subject to put provisions		0	33	33
Change in fair value of noncontrolling interest subject to put provisions		- 10	- 22	- 32
Comprehensive income (loss)
Net income		810	418	1,228
Other comprehensive income (loss)
Cash flow hedges	- 2	- 2	–	- 2
Change of fair value of
available for sale financial assets	- 16	- 16	–	- 16
Foreign currency translation	332	332	379	711
Actuarial losses on defined benefit pension plans	- 2	- 2	- 2	- 4
Comprehensive income	312	1,122	795	1,917
As of September 30, 2014	- 39	9,150	5,704	14,854
As of December 31, 2014	- 119	9,335	6,148	15,483
Proceeds from the exercise of stock options		90	42	132
Compensation expense related to
stock options		13	4	17
Vested subsidiary stock incentive plans		- 1	- 1	- 2
Dividends paid		- 238	- 237	- 475
Purchase of noncontrolling interest
not subject to put provisions		0	19	19
Change in fair value of noncontrolling
interest subject to put provisions		- 37	- 81	- 118
Comprehensive income (loss)
Net income		999	560	1,559
Other comprehensive income (loss)
Cash flow hedges	15	15	14	29
Change of fair value of available for sale financial assets	–	–	–	–
Foreign currency translation	212	212	321	533
Actuarial losses on defined benefit pension plans	- 4	- 4	- 3	- 7
Comprehensive income	223	1,222	892	2,114
As of September 30, 2015	104	10,384	6,786	17,170

A
A



US SE & CO. KG






NI

FRESE

CONSOLIDATED SEGMENT REPORTING FIRST THREE QUARTERS (UNAUDITED)

		Fresenius Medical Care			Fresenius Kabi			Fresenius Helios			Fresenius Vamed			Corporate / Other			Fresenius Group
by business segment, € in millions	2015	2014	Change	2015 2	2014 3	Change	2015 4	2014 5	Change	2015	2014	Change	2015 6	2014 7	Change	2015	2014	Change
Sales	11,118	8,496	31%	4,431	3,760	18%	4,167	3,883	7%	731	655	12%	- 78	- 83	6%	20,369	16,711	22%
thereof contribution to consolidated sales	11,100	8,464	31%	4,397	3,729	18%	4,167	3,883	7%	701	631	11%	4	4	0%	20,369	16,711	22%
thereof intercompany sales	18	32	- 44%	34	31	10%	0	0		30	24	25%	- 82	- 87	6%	0	0
contribution to consolidated sales	55%	51%		22%	22%		20%	23%		3%	4%		0%	0%		100%	100%
EBITDA	1,976	1,553	27%	1,060	785	35%	612	534	15%	38	35	9%	- 40	37	--	3,646	2,944	24%
Depreciation and amortization	482	379	27%	188	151	25%	140	137	2%	8	8	0%	7	7	0%	825	682	21%
EBIT	1,494	1,174	27%	872	634	38%	472	397	19%	30	27	11%	- 47	30	--	2,821	2,262	25%
Net interest	- 272	- 217	- 25%	- 144	- 145	1%	- 36	- 41	12%	- 2	- 1	- 100%	- 22	- 27	19%	- 476	- 431	- 10%
Income taxes	- 397	- 325	- 22%	- 228	- 136	- 68%	- 78	- 64	- 22%	- 7	- 7	0%	25	6	--	- 685	- 526	- 30%
shareholders of Fresenius SE & Co. KGaA Net income attributable to	639	524	22%	479	337	42%	352	286	23%	20	18	11%	- 491	- 355	- 38%	999	810	23%
Operating cash fl ow	1,267	940	35%	589	432	36%	386	404	- 4%	- 44	- 44	0%	- 47	- 37	- 27%	2,151	1,695	27%
Cash fl ow before acquisitions and dividends	696	469	48%	381	209	82%	248	261	- 5%	- 52	- 50	- 4%	- 54	- 42	- 29%	1,219	847	44%

Total assets 1	22,685	20,960	8%	10,301	9,655	7%	8,435	8,352	1%	909	891	2%	- 161	39	--	42,169	39,897	6%
Debt 1	8,116	7,851	3%	5,363	5,205	3%	1,296	1,394	- 7%	193	159	21%	269	845	- 68%	15,237	15,454	- 1%
Capital expenditure, gross	581	477	22%	212	223	- 5%	142	143	- 1%	9	6	50%	6	5	20%	950	854	11%
Acquisitions, gross / investments	210	919	- 77%	37	118	- 69%	29	812	- 96%	4	12	- 67%	- 8	0		272	1,861	- 85%
Research and development expenses	90	67	34%	243	195	25%	–	–	--	0	0		4	1	--	337	263	28%
(per capita on balance sheet date) 1 Employees	108,774	105,917	3%	33,294	32,899	1%	69,762	68,852	1%	8,132	7,746	5%	891	861	3%	220,853	216,275	2%
Key fi gures
EBITDA margin	17.8%	18.3%		23.9%	20.9%		14.7%	13.8%		5.2%	5.3%					18.0% 2,4	17.4%5
EBIT margin	13.4%	13.8%		19.7%	16.9%		11.3%	10.2%		4.1%	4.1%					14.0% 2,4	13.3%5
Depreciation and amortization in % of sales	4.3%	4.5%		4.2%	4.0%		3.4%	3.5%		1.1%	1.2%					4.1%	4.1%
Operating cash flow in % of sales	11.4%	11.1%		13.3%	11.5%		9.3%	10.4%		- 6.0%	- 6.7%					10.6%	10.1%
ROOA 1	9.7%	9.7%		12.3%	10.5%		7.9%	7.4%		10.6%	11.2%					9.9% 8	9.1% 9

1 2014: December 31

2 Before costs for the effi ciency program

3 Before integration costs

4 Before integration costs and disposal gains (two HELIOS hospitals)

5 Before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)

6 After costs for the effi ciency program, integration costs and disposal gains (two HELIOS hospitals) 7 After integration costs and disposal gains (two HELIOS hospitals, Rhön stake)

8 The underlying pro forma EBIT does not include costs for the effi ciency program, integration costs and disposal gains (two HELIOS hospitals).

9 The underlying pro forma EBIT does not include integration costs and disposal gains (two HELIOS hospitals, Rhön stake).

ME G D SE ATE D OLI NS CO	T REP N	RTI O	G THI N		U RD Q	ARTE	N R (U	DI AU	D) TE
		Fresenius Medical Care			Fresenius Kabi			Fresenius Helios			Fresenius Vamed			Corporate / Other			Fresenius Group
by business segment, € in millions	2015	2014	Change	2015 1	2014 2	Change	2015 2	2014 2	Change	2015	2014	Change	2015 3	2014 4	Change	2015	2014	Change
Sales	3,806	3,097	23%	1,499	1,294	16%	1,393	1,362	2%	268	257	4%	- 26	- 32	19%	6,940	5,978	16%
thereof contribution to consolidated sales	3,800	3,083	23%	1,488	1,282	16%	1,393	1,362	2%	258	250	3%	1	1	0%	6,940	5,978	16%
thereof intercompany sales	6	14	- 57%	11	12	- 8%	0	0		10	7	43%	- 27	- 33	18%	0	0
contribution to consolidated sales	55%	52%		21%	21%		20%	23%		4%	4%		0%	0%		100%	100%
EBITDA	714	577	24%	369	272	36%	213	190	12%	17	15	13%	- 17	- 10	- 70%	1,296	1,044	24%
Depreciation and amortization	162	134	21%	68	49	39%	48	43	12%	3	3	0%	2	2	0%	283	231	23%
EBIT	552	443	25%	301	223	35%	165	147	12%	14	12	17%	- 19	- 12	- 58%	1,013	813	25%
Net interest	- 89	- 75	- 19%	- 42	- 50	16%	- 11	- 14	21%	0	- 1	100%	- 4	- 8	50%	- 146	- 148	1%
Income taxes	- 152	- 122	- 25%	- 82	- 48	- 71%	- 26	- 24	- 8%	- 3	- 3	0%	5	2	150%	- 258	- 195	- 32%
shareholders of Fresenius SE & Co. KGaA Net income attributable to	235	204	15%	170	120	42%	126	107	18%	10	8	25%	- 184	- 163	- 13%	357	276	29%

Operating cash fl ow	521	530	- 2%	235	217	8%	155	199	- 22%	0	18	- 100%	- 11	- 19	42%	900	945	- 5%
Cash fl ow before acquisitions and dividends	319	362	- 12%	171	136	26%	98	139	- 29%	- 1	16	- 106%	- 14	- 24	42%	573	629	- 9%

Capital expenditure, gross	207	171	21%	71	95	- 25%	58	60	- 3%	2	3	- 33%	1	3	- 67%	339	332	2%
Acquisitions, gross / investments	73	479	- 85%	1	99	- 99%	1	55	- 98%	4	11	- 64%	- 1	1	- 200%	78	645	- 88%

Research and development expenses	31	23	35%	82	70	17%	–	–	--	0	0		1	0		114	93	23%
Key fi gures

EBITDA margin	18.7%	18.7%		24.6%	21.0%		15.3%	14.0%		6.3%	5.8%					18.9% 1,2	17.6% 2
EBIT margin	14.5%	14.3%		20.1%	17.2%		11.8%	10.8%		5.2%	4.7%					14.8% 1,2	13.7% 2
Depreciation and amortization in % of sales	4.3%	4.3%		4.5%	3.8%		3.4%	3.2%		1.1%	1.2%					4.1%	3.9%

FRESENIUS SE & CO. KGAA

1 Before costs for the effi ciency program 2 Before integration costs 3 After costs for the effi ciency program and integration costs 4 After integration costs

Operating cash flow in % of sales 13.7% 17.3% 15.7% 16.8% 11.1% 14.6% 0.0% 7.0% 13.0% 15.8%

The consolidated segment reporting is an integral part of the notes. The following notes are an integral part of the unaudited condensed interim fi nancial statements.

TABLE OF CONTENTS NOTES

27 General notes

27 1. Principles
27 I. Group structure
27 II. Basis of presentation
27 III. Summary of signifi cant accounting policies
27 IV. Recent pronouncements, applied
28 V. Recent pronouncements, not yet applied
29 2. Acquisitions, divestitures and investments

30 Notes on the consolidated statement of income

30 3. Special items
30 4. Sales
31 5. Taxes
31 6. Earnings per share

31 Notes on the consolidated statement of fi nancial position

31 7. Cash and cash equivalents
31 8. Trade accounts receivable
31 9. Inventories
32 10. Other current and non-current assets
32 11. Goodwill and other intangible assets
33 12. Debt and capital lease obligations
36 13. Senior Notes
37 14. Convertible bonds
37 15. Pensions and similar obligations
37 16. Noncontrolling interest
38 17. Fresenius SE & Co. KGaA shareholders' equity
39 18. Other comprehensive income (loss)

41 Other notes

41 19. Legal and regulatory matters
43 20. Financial instruments
48 21. Supplementary information on capital management
48 22. Supplementary information on the consolidated statement of cash fl ows
49 23. Notes on the consolidated segment reporting
50 24. Stock options
50 25. Related party transactions
51 26. Subsequent events
51 27. Corporate Governance

GENERAL NOTES

1. PRINCIPLES

I. GROUP STRUCTURE

Fresenius is a global health care group with products and services for dialysis, hospitals and outpatient medical care. In addition, the Fresenius Group focuses on hospi tal operations and also manages projects and provides services for hospitals and other health care facilities worldwide. Besides the activities of the parent company Fresenius SE & Co. KGaA, Bad Homburg v. d. H., the operating activities were split into the following legally independent business segments as of September 30, 2015:

▶ Fresenius Medical Care
▶ Fresenius Kabi
▶ Fresenius Helios
▶ Fresenius Vamed

The reporting currency in the Fresenius Group is the euro. In order to make the presentation clearer, amounts are mostly shown in million euros. Amounts under € 1 million after rounding are marked with "–".

II. BASIS OF PRESENTATION

The accompanying condensed consolidated fi nancial statements have been prepared in accordance with the United States Generally Accepted Accounting Principles (U.S. GAAP).

Fresenius SE & Co. KGaA, as a stock exchange listed company with a domicile in a member state of the European Union, fulfi lls its obligation to prepare and publish the consolidated fi nancial statements in accordance with the International Financial Reporting Standards (IFRS) applying Section 315a of the German Commercial Code (HGB). Simultaneously, the Fresenius Group voluntarily prepares and publishes the consolidated fi nancial statements in accordance with U.S. GAAP.

The accounting policies underlying these interim fi nancial statements are mainly the same as those applied in the consolidated fi nancial statements as of December 31, 2014.

III. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

The condensed consolidated fi nancial statements and management report for the fi rst three quarters and the third quarter ended September 30, 2015 have not been audited nor reviewed and should be read in conjunction with the notes included in the consolidated fi nancial statements as of December 31, 2014, published in the 2014 Annual Report.

Except for the reported acquisitions (see note 2, Acquisitions, divestitures and investments), there have been no other major changes in the entities consolidated.

The consolidated fi nancial statements for the fi rst three quarters and the third quarter ended September 30, 2015 include all adjustments that, in the opinion of the Management Board, are of a normal and recurring nature and are necessary to provide an appropriate view of the assets and liabilities, fi nancial position and results of operations of the Fresenius Group.

The results of operations for the fi rst three quarters ended September 30, 2015 are not necessarily indicative of the results of operations for the fi scal year 2015.

Use of estimates

The preparation of consolidated fi nancial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated fi nancial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

IV. RECENT PRONOUNCEMENTS, APPLIED

The Fresenius Group has prepared its consolidated fi nancial statements at September 30, 2015 in conformity with U.S. GAAP in force for interim periods on January 1, 2015.

The Fresenius Group applied the following standards, as far as they are relevant for Fresenius Group's business, for the fi rst time:

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-11 (ASU 2014-11), FASB Accounting Standards Codifi cation (ASC) Topic 860, Transfers and Servicing – Repurchase-to-Maturity

Transactions, Repurchase Financings, and Disclosures, which aligns the accounting for repurchase-to-maturity transactions and repurchase fi nancing arrangements with the accounting for other typical repurchase agreements, i. e. these transactions will be accounted for as secured borrowings. ASU 2014-11 also requires additional disclosures about repurchase agreements and other similar transactions. The update is effective for fi scal years and interim periods within those years beginning on or after December 15, 2014. The Fresenius Group adopted ASU 2014-11 as of January 1, 2015. ASU 2014-11 does not have a material impact on the consolidated fi nancial statements of the Fresenius Group.

In April 2014, the FASB issued Accounting Standards Update 2014-08 (ASU 2014-08), FASB ASC Topic 205, Presentation of Financial Statements and FASB ASC Topic 360, Property, Plant, and Equipment – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08's objective is to reduce the complexity and diffi culty in applying guidance for discontinued operations. ASU 2014-08's main focus is to limit the presentation to disposals representing a strategic shift that has a major effect on operations or fi nancial results. The update is effective for fi scal years and interim periods within those years beginning on or after December 15, 2014. The Fresenius Group adopted ASU 2014-08 as of January 1, 2015. ASU 2014-08 does not have a material impact on the consolidated fi nancial statements of the Fresenius Group.

In January 2014, the FASB issued Accounting Standards Update 2014-05 (ASU 2014-05), FASB ASC Topic 853, Service Concession Arrangements. ASU 2014-05's objective is to specify that an operating entity should not account for a service concession arrangement that is within the scope of ASU 2014-05 as a lease. The update is effective for fi scal years and interim periods within those years beginning on or after December 15, 2014. The Fresenius Group adopted ASU 2014-05 as of January 1, 2015. ASU 2014-05 does not have a material impact on the consolidated fi nancial statements of the Fresenius Group.

V. RECENT PRONOUNCEMENTS, NOT YET APPLIED The FASB issued the following relevant new standards for the Fresenius Group:

In September 2015, the FASB issued Accounting Standards Update 2015-16 (ASU 2015-16), FASB ASC Topic 805, Business Combinations – Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identifi ed during the measurement period in the reporting period in which the adjustment amounts are determined. The update also requires that the acquirer separately disclose the portion of the amount recorded in current period earnings that would have been recorded in previous periods as a result of an adjustment to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update is effective for fi scal years and interim periods within those years beginning on or after December 15, 2015. The Fresenius Group is currently evaluating the impact of ASU 2015-16 on its consolidated fi nancial statements.

In July 2015, the FASB issued Accounting Standards Update 2015-12 (ASU 2015-12), FASB ASC Topic 960, Plan Accounting – Defi ned Benefi t Pension Plans, FASB ASC Topic 962, Defi ned Contribution Pension Plans and FASB ASC Topic 965, Health and Welfare Benefi t Plans – I. Fully Benefi t-Responsive Investment Contracts, II. Plan Investment Disclosures, and III. Measurement Date Practical Expedient. ASU 2015-12 simplifi es the measurement, presentation and related disclosures for fully benefi t-responsive investment contracts and disclosures about plan investments. This update is effective for fi scal years beginning after December 15, 2015, including interim periods within those fi scal years, with earlier adoption permitted. ASU 2015-12 does not have an impact on the consolidated fi nancial statements of the Fresenius Group.

In July 2015, the FASB issued Accounting Standards Update 2015-11 (ASU 2015-11), FASB ASC Topic 330, Inventory – Simplifying the Measurement of Inventory. ASU 2015-11 applies to companies other than those that measure inventory using last-in, fi rst-out (LIFO) or the retail inventory method.

This update requires applicable companies to measure inventory at the lower of cost and net realizable value. This update is effective for fi scal years beginning after December 15, 2016, including interim periods within those fi scal years, with earlier adoption permitted. The Fresenius Group will implement this ASU as of December 31, 2015. ASU 2015-11 does not have a material impact on the consolidated fi nancial statements of the Fresenius Group.

In April 2015, the FASB issued Accounting Standards Update 2015-05 (ASU 2015-05), FASB ASC Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software: Customer's Accounting for Fees Paid in a Cloud Computing Arrangement, which assists entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement, depending upon the inclusion or exclusion of software licenses. This update is effective for fi scal years and interim periods within those years beginning after December 15, 2015. The Fresenius Group is currently evaluating the impact of ASU 2015-05 on its consolidated fi nancial statements.

In April 2015, the FASB issued Accounting Standards Update 2015-03 (ASU 2015-03), FASB ASC Subtopic 835-30, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that liability, consistent with debt discounts. This update is effective for fi scal years and interim periods within those years beginning after December 15, 2015. Earlier adoption is permitted. The Fresenius Group will implement this ASU as of December 31, 2015. ASU 2015-03 does not have a material impact on the consolidated fi nancial statements of the Fresenius Group.

In February 2015, the FASB issued Accounting Standards Update 2015-02 (ASU 2015-02), FASB ASC Topic 810, Consolidation – Amendments to the Consolidation Analysis, which focuses on clarifying guidance related to the evaluation of various types of legal entities such as limited partnerships, limited liability corporations and certain security transactions for consolidation. The update is effective for fi scal years and interim periods within those years beginning after December 15, 2015. The Fresenius Group is currently evaluating the impact of ASU 2015-02 on its consolidated fi nancial statements.

In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09), FASB ASC Topic 606, Revenue from Contracts with Customers. Simultaneously, the Inter national Accounting Standards Board (IASB) published its equivalent revenue standard, IFRS 15, Revenue from Contracts with Customers. The standards are the result of a convergence project between FASB and the IASB. This update specifi es how and when companies reporting under U.S. GAAP will recognize revenue as well as providing users of fi nancial statements with more informative and relevant disclosures. ASU 2014-09 supersedes some guidance included in Topic 605, Revenue Recognition, some guidance within the scope of Topic 360, Property, Plant, and Equipment, and some guidance within the scope of Topic 350, Intangibles – Goodwill and Other. This ASU applies to nearly all contracts with customers, unless those contracts are within the scope of other standards (for example, lease contracts or insurance contracts). With the issuance of Accounting Standards Update 2015-14 (ASU 2015-14), FASB ASC Topic 606, Revenue from Contracts with Customers – Deferral of the Effective Date, in August 2015, the effective date of ASU 2014-09 for public business entities, among others, was deferred from fi scal years and interim periods within those years beginning on or after December 15, 2016 to fi scal years and interim periods within those years beginning on or after December 15, 2017. Earlier adoption is not permitted. The Fresenius Group is currently evaluating the impact of ASU 2014-09, in conjunction with ASU 2015-14, on its consolidated fi nancial statements.

2. ACQUISITIONS, DIVESTITURES AND INVESTMENTS

The Fresenius Group made acquisitions, investments and purchases of intangible assets of € 272 million and € 1,861 million in the fi rst three quarters of 2015 and 2014, respectively. Of this amount, € 239 million was paid in cash and € 33 million was assumed obligations in the fi rst three quarters of 2015.

FRESENIUS MEDICAL CARE

In the fi rst three quarters of 2015, Fresenius Medical Care spent € 210 million on acquisitions, mainly for dialysis care services. In the third quarter of 2015, Fresenius Medical Care sold the dialysis service business in Venezuela. The transaction resulted in a non-tax deductible loss of € 24 million (US\$ 26.3 million).

Furthermore, Fresenius Medial Care sold the European marketing rights for certain renal pharmaceuticals to the joint venture, Vifor Fresenius Medical Care Renal Pharma. In the third quarter of 2015, the transaction resulted in an after-tax gain of € 4.3 million (US\$ 4.8 million).

FRESENIUS KABI

In the fi rst three quarters of 2015, Fresenius Kabi spent € 37 million on acquisitions, which mainly related to the purchase of 100% of the shares in medi1one medical gmbh, Germany, and the purchase of further shares in Fresenius Kabi Bidiphar JSC, Vietnam. Furthermore, on February 16, 2015, Fresenius Kabi sold its German subsidiary CFL GmbH including its subsidiaries to NewCo Pharma GmbH. On September 30, 2015, Fresenius Kabi also sold its compounding business in Australia. The transactions resulted in a book gain in an immaterial amount, respectively.

FRESENIUS HELIOS

In the fi rst three quarters of 2015, Fresenius Helios spent € 29 million on acquisitions, mainly for subsequent purchase price payments, the acquisition of outpatient facilities and the purchase of 94% of the shares in Lungenklinik Diekholzen gGmbH, Germany.

FRESENIUS VAMED

In the fi rst three quarters of 2015, Fresenius Vamed spent € 4 million on acquisitions, mainly for a participation for the expansion of a thermal spa in Austria.

CORPORATE / OTHER

The segment Corporate / Other includes the consolidation of an intercompany transaction in the amount of € 8 million.

NOTES ON THE CONSOLIDATED STATEMENT OF INCOME

3. SPECIAL ITEMS

Net income attributable to shareholders of Fresenius SE & Co. KGaA for the fi rst three quarters of 2015 in the amount of € 999 million includes special items relating to Fresenius Kabi's effi ciency program and the integration of the acquired Rhön hospitals. The divestment of two HELIOS hospitals in the fi scal year 2014 led to an additional disposal gain in the fi rst three quarters of 2015.

The special items had the following impact on the consolidated statement of income:

U.S. GAAP	2,821	999
Earnings Q1 – 3 / 2015 according to
Disposal gains from the divestment of two HELIOS hospitals	34	34
Integration costs for the acquired Rhön hospitals	- 12	- 10
Costs for Fresenius Kabi's effi ciency program	- 50	- 34
Earnings Q1 – 3 / 2015, adjusted	2,849	1,009
€ in millions	EBIT	Net income attributable to share holders of Fresenius SE & Co. KGaA

4. SALES

Sales by activity were as follows:

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Sales of services	13,759	10,972
less patient service bad debt provision	- 287	- 153
Sales of products and related goods	6,553	5,579
Sales from long-term production contracts	338	309
Other sales	6	4
Sales	20,369	16,711

5. TAXES

During the fi rst three quarters of 2015, there were no further material changes relating to tax audits, accruals for income taxes, unrecognized tax benefi ts as well as recognized and accrued payments for interest and penalties. Explanations regarding the tax audits and further information can be found in the consolidated fi nancial statements in the 2014 Annual Report.

6. EARNINGS PER SHARE

The following table shows the earnings per share including and excluding the dilutive effect from stock options issued:

	Q1 – 3 / 2015	Q1 – 3 / 2014
Numerators, € in millions
Net income attributable to shareholders of
Fresenius SE & Co. KGaA	999	810
less effect from dilution due to Fresenius Medical Care shares	–	–
Income available to all ordinary shares	999	810
Denominators in number of shares
Weighted-average number of ordinary shares outstanding	543,366,248	539,976,138
Potentially dilutive ordinary shares	4,562,590	4,006,689
Weighted-average number of ordinary shares outstanding
assuming dilution	547,928,838	543,982,827
Basic earnings per
ordinary share in €	1.84	1.50
Fully diluted earnings per ordinary share in €	1.82	1.49

NOTES ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

7. CASH AND CASH EQUIVALENTS

As of September 30, 2015 and December 31, 2014, cash and cash equivalents were as follows:

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Cash	969	1,127
Time deposits and securities (with a maturity of up to 90 days)	6	48
Total cash and cash equivalents	975	1,175

As of September 30, 2015 and December 31, 2014, earmarked funds of € 56 million and € 52 million, respectively, were included in cash and cash equivalents.

8. TRADE ACCOUNTS RECEIVABLE

As of September 30, 2015 and December 31, 2014, trade accounts receivable were as follows:

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Trade accounts receivable	5,295	4,780
less allowance for doubtful accounts	650	545
Trade accounts receivable, net	4,645	4,235

9. INVENTORIES

As of September 30, 2015 and December 31, 2014, inventories consisted of the following:

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Raw materials and purchased components	599	527
Work in process	477	451
Finished goods	1,767	1,440
less reserves	93	85
Inventories, net	2,750	2,333

10. OTHER CURRENT AND NON-CURRENT ASSETS

As of September 30, 2015, investments were comprised of investments of € 596 million (December 31, 2014: € 558 million), mainly regarding the joint venture between Fresenius Medical Care and Galenica Ltd., that were accounted for under the equity method. In the fi rst three quarters of 2015, income of € 20 million (Q1 – 3 / 2014: € 16 million) resulting from this

valuation was included in selling, general and administrative expenses in the consolidated statement of income. Securities and long-term loans included € 159 million fi nancial assets available for sale as of September 30, 2015 (December 31, 2014: € 148 million) mainly relating to shares in funds. Furthermore, securities and long-term loans included € 162 million as of September 30, 2015 that Fresenius Medical Care loaned to a middle-market dialysis provider.

11. GOODWILL AND OTHER INTANGIBLE ASSETS

As of September 30, 2015 and December 31, 2014, intangible assets, split into amortizable and non-amortizable intangible assets, consisted of the following:

AMORTIZABLE INTANGIBLE ASSETS

		September 30, 2015			December 31, 2014
€ in millions	Acquisition cost	Accumulated amortization	Carrying amount	Acquisition cost	Accumulated amortization	Carrying amount
Patents, product and distribution rights	690	337	353	633	288	345
Technology	372	102	270	349	77	272
Non-compete agreements	308	240	68	281	212	69
Other	1,107	533	574	1,000	448	552
Total	2,477	1,212	1,265	2,263	1,025	1,238

Estimated regular amortization expenses of intangible assets for the next fi ve years are shown in the following table:

€ in millions	Q4 / 2015	2016	2017	2018	2019	Q1 – 3 / 2020
Estimated amortization expenses	48	170	164	158	154	114

NON-AMORTIZABLE INTANGIBLE ASSETS

	September 30, 2015			December 31, 2014
€ in millions	Acquisition cost	Accumulated amortization	Carrying amount	Acquisition cost	Accumulated amortization	Carrying amount
Tradenames	215	0	215	202	0	202
Management contracts	6	0	6	6	0	6
Goodwill	21,084	0	21,084	19,868	0	19,868
Total	21,305	0	21,305	20,076	0	20,076

The carrying amount of goodwill has developed as follows:

€ in millions	Fresenius Medical Care	Fresenius Kabi	Fresenius Helios	Fresenius Vamed	Corporate / Other	Fresenius Group
Carrying amount as of January 1, 2014	8,454	4,116	2,165	85	6	14,826
Additions	1,287	99	2,250	14	0	3,650
Disposals	0	- 3	- 28	0	0	- 31
Reclassifi cations	0	–	0	0	0	–
Foreign currency translation	1,034	389	0	0	0	1,423
Carrying amount as of December 31, 2014	10,775	4,601	4,387	99	6	19,868
Additions	68	27	49	0	0	144
Disposals	0	- 1	0	0	0	- 1
Foreign currency translation	794	279	0	0	0	1,073
Carrying amount as of September 30, 2015	11,637	4,906	4,436	99	6	21,084

As of September 30, 2015 and December 31, 2014, the carrying amounts of the other non-amortizable intangible assets were € 193 million and € 179 million, respectively, for Fresenius Medical Care as well as € 28 million and € 29 million, respectively, for Fresenius Kabi.

12. DEBT AND CAPITAL LEASE OBLIGATIONS

SHORT-TERM DEBT

The Fresenius Group had short-term debt of € 422 million and € 230 million at September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, this debt consisted of borrowings by certain entities of the Fresenius Group under lines of credit with commercial banks of € 202 million. Furthermore, € 220 million were outstanding under the commercial paper program of Fresenius SE & Co. KGaA.

LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

As of September 30, 2015 and December 31, 2014, long-term debt and capital lease obligations consisted of the following:

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Fresenius Medical Care 2012 Credit Agreement	2,380	2,389
2013 Senior Credit Agreement	2,422	2,561
Euro Notes	917	1,025
Accounts receivable facility of Fresenius Medical Care	264	281
Capital lease obligations	153	151
Other	287	323
Subtotal	6,423	6,730
less current portion	559	753
Long-term debt and capital lease obligations, less current portion	5,864	5,977

Fresenius Medical Care 2012 Credit Agreement Fresenius Medical Care AG & Co. KGaA (FMC-AG & Co. KGaA) originally entered into a syndicated credit facility ( Fresenius Medical Care 2012 Credit Agreement) of US\$ 3,850 million and a 5-year period with a large group of banks and institutional investors on October 30, 2012.

On November 26, 2014, the Fresenius Medical Care 2012 Credit Agreement was amended to increase the total credit facility to approximately US\$ 4,400 million and extend the term for an additional two years until October 30, 2019.

The following tables show the available and outstanding amounts under the Fresenius Medical Care 2012 Credit Agreement after scheduled amortization payments at September 30, 2015 and at December 31, 2014:

	September 30, 2015

	€ in millions		€ in millions
US\$ 1,000 million	893	US\$1 million	1
€ 400 million	400	€ 0 million	0
US\$ 2,350 million	2,097	US\$2,350 million	2,097
€ 282 million	282	€ 282 million	282
	3,672		2,380
		Maximum amount available	Balance outstanding

		December 31, 2014
	Maximum amount available		Balance outstanding
		€ in millions		€ in millions
Revolving Credit (in US\$)	US\$ 1,000 million	824	US\$36 million	30
Revolving Credit (in €)	€ 400 million	400	€ 0 million	0
US\$ Term Loan	US\$ 2,500 million	2,059	US\$2,500 million	2,059
€ Term Loan	€ 300 million	300	€ 300 million	300
Total		3,583		2,389

In addition, at September 30, 2015 and December 31, 2014, Fresenius Medical Care had letters of credit outstanding in the amount of US\$ 4 million and US\$ 7 million, respectively, which were not included above as part of the balance outstanding at those dates but which reduce available borrowings under the applicable Revolving Credit Facility.

As of September 30, 2015, FMC-AG & Co. KGaA and its subsidiaries were in compliance with all covenants under the Fresenius Medical Care 2012 Credit Agreement.

2013 Senior Credit Agreement

On December 20, 2012, Fresenius SE & Co. KGaA and various subsidiaries entered into a delayed draw syndicated credit agreement (2013 Senior Credit Agreement) in the original amount of US\$ 1,300 million and € 1,250 million. Since the initial funding of the 2013 Senior Credit Agreement in June 2013, additional tranches were added and scheduled amortization payments have been made. Furthermore, on January 29, 2015, a term loan B tranche of € 297 million was voluntarily prepaid.

On February 12, 2015, the revolving credit facilities and the term loan A tranches were extended ahead of time by two years to a new maturity date on June 28, 2020. These tranches would have otherwise matured in June 2018.

The maturities of the 2013 Senior Credit Agreement shown in the consolidated statement of fi nancial position as of December 31, 2014 already took into account the amendments made in February 2015.

The following tables show the available and outstanding amounts under the 2013 Senior Credit Agreement at September 30, 2015 and at December 31, 2014:

		September 30, 2015
	Maximum amount available		Balance outstanding
		€ in millions		€ in millions
Revolving Credit Facilities (in €)	€ 900 million	900	€ 0 million	0
Revolving Credit Facilities (in US\$)	US\$ 300 million	268	US\$ 200 million	179
Term Loan A (in €)	€ 1,088 million	1,088	€ 1,088 million	1,088
Term Loan A (in US\$)	US\$ 804 million	718	US\$ 804 million	718
Term Loan B (in US\$)	US\$ 490 million	437	US\$ 490 million	437
Total		3,411		2,422

		December 31, 2014
	Maximum amount available		Balance outstanding
		€ in millions		€ in millions
Revolving Credit Facilities (in €)	€ 900 million	900	€ 0 million	0
Revolving Credit Facilities (in US\$)	US\$ 300 million	247	US\$ 0 million	0
Term Loan A (in €)	€ 1,125 million	1,125	€ 1,125 million	1,125
Term Loan A (in US\$)	US\$ 890 million	733	US\$ 890 million	733
Term Loan B (in €)	€ 297 million	297	€ 297 million	297
Term Loan B (in US\$)	US\$ 494 million	406	US\$ 494 million	406
Total		3,708		2,561

As of September 30, 2015, the Fresenius Group was in com pliance with all covenants under the 2013 Senior Credit Agreement.

Euro Notes

As of September 30, 2015 and December 31, 2014, Euro Notes (Schuldscheindarlehen) of the Fresenius Group consisted of the following:

		€ in millions
Maturity	Interest rate	Sept. 30, 2015	Dec. 31, 2014
April 4, 2016	3.36%	108	156
April 4, 2016	variable	0	129
Aug. 22, 2017	2.65%	51	51
Aug. 22, 2017	variable	74	74
April 2, 2018	2.09%	97	97
April 2, 2018	variable	76	76
April 2, 2018	variable	65	65
April 4, 2018	4.09%	72	72
April 4, 2018	variable	0	43
October 8, 2018	1.07%	36	0
October 8, 2018	variable	55	0
April 2, 2020	2.67%	106	106
April 2, 2020	variable	55	55
April 2, 2020	variable	101	101
April 7, 2022	variable	21	0
		917	1,025

		Book value / nominal value € in millions
Maturity	Interest rate	Sept. 30, 2015	Dec. 31, 2014

In March 2015, Fresenius SE & Co. KGaA voluntarily terminated fl oating rate tranches of Euro Notes due in 2016 and 2018 in the amount of € 172 million ahead of time. Furthermore, the Company made a termination offer to investors

of its fi xed rate € 156 million Euro Notes maturing in April 2016 which was accepted for € 48 million. The respective repayments were made on April 7, 2015. The remaining Euro Notes of € 108 million due in 2016 are shown as current portion of long-term debt and capital lease obligations in the consolidated statement of fi nancial position. Furthermore, in April 2015, new Euro Notes with maturities in 2018 and 2022 were issued in a total amount of € 112 million.

As of September 30, 2015, the Fresenius Group was in compliance with all of its covenants under the Euro Notes.

CREDIT LINES

In addition to the fi nancial liabilities described before, the Fresenius Group maintains additional credit facilities which have not been utilized, or have only been utilized in part, as of the reporting date. At September 30, 2015, the additional fi nancial cushion resulting from unutilized credit facilities was approximately € 3.2 billion. Thereof € 2.3 billion accounted for syndicated credit facilities.

13. SENIOR NOTES

As of September 30, 2015 and December 31, 2014, Senior Notes of the Fresenius Group consisted of the following:

				Book value € in millions
	Notional amount	Maturity	Interest rate	Sept. 30, 2015	Dec. 31, 2014
Fresenius Finance B.V. 2014 / 2019	€ 300 million	Feb. 1, 2019	2.375%	299	299
Fresenius Finance B.V. 2012 / 2019	€ 500 million	Apr. 15, 2019	4.25%	500	500
Fresenius Finance B.V. 2013 / 2020	€ 500 million	July 15, 2020	2.875%	500	500
Fresenius Finance B.V. 2014 / 2021	€ 450 million	Feb. 1, 2021	3.00%	446	445
Fresenius Finance B.V. 2014 / 2024	€ 450 million	Feb. 1, 2024	4.00%	453	453
Fresenius US Finance II, Inc. 2009 / 2015	€ 275 million	July 15, 2015	8.75%	0	273
Fresenius US Finance II, Inc. 2009 / 2015	US\$ 500 million	July 15, 2015	9.00%	0	409
Fresenius US Finance II, Inc. 2014 / 2021	US\$ 300 million	Feb. 1, 2021	4.25%	268	247
Fresenius US Finance II, Inc. 2015 / 2023	US\$ 300 million	Jan. 15, 2023	4.50%	268	0
FMC Finance VI S.A. 2010 / 2016	€ 250 million	July 15, 2016	5.50%	250	249
FMC Finance VII S.A. 2011 / 2021	€ 300 million	Feb. 15, 2021	5.25%	297	297
FMC Finance VIII S.A. 2011 / 2016	€ 100 million	Oct. 15, 2016	variable	100	100
FMC Finance VIII S.A. 2011 / 2018	€ 400 million	Sept. 15, 2018	6.50%	398	397
FMC Finance VIII S.A. 2012 / 2019	€ 250 million	July 31, 2019	5.25%	245	245
Fresenius Medical Care US Finance, Inc. 2007 / 2017	US\$ 500 million	July 15, 2017	6.875%	445	410
Fresenius Medical Care US Finance, Inc. 2011 / 2021	US\$ 650 million	Feb. 15, 2021	5.75%	577	532
Fresenius Medical Care US Finance II, Inc. 2011 / 2018	US\$ 400 million	Sept. 15, 2018	6.50%	355	327
Fresenius Medical Care US Finance II, Inc. 2012 / 2019	US\$ 800 million	July 31, 2019	5.625%	714	659
Fresenius Medical Care US Finance II, Inc. 2014 / 2020	US\$ 500 million	Oct. 15, 2020	4.125%	446	411
Fresenius Medical Care US Finance II, Inc. 2012 / 2022	US\$ 700 million	Jan. 31, 2022	5.875%	625	577
Fresenius Medical Care US Finance II, Inc. 2014 / 2024	US\$ 400 million	Oct. 15, 2024	4.75%	357	329
Senior Notes				7,543	7,659

All Senior Notes included in the table are unsecured.

The Senior Notes issued by Fresenius US Finance II, Inc. which were due on July 15, 2015 have been repaid as scheduled and refi nanced with the issuance of commercial paper.

On September 25, 2015, Fresenius US Finance II, Inc. issued US\$ 300 million of unsecured Senior Notes with a maturity of seven years. The Senior Notes have a coupon of 4.50% and were issued at par.

The proceeds from the offering of Senior Notes were used to refi nance commercial paper.

The Senior Notes issued by FMC Finance VI S.A. which are due on July 15, 2016 have been reclassifi ed as short-term debt and are shown as current portion of Senior Notes in the consolidated statement of fi nancial position.

As of September 30, 2015, the Fresenius Group was in compliance with all of its covenants under the Senior Notes.

14. CONVERTIBLE BONDS

As of September 30, 2015 and December 31, 2014, the convertible bonds of the Fresenius Group consisted of the following:

						Book value € in millions
	Notional amount	Maturity	Coupon	Current conversion price	Sept. 30, 2015	Dec. 31, 2014
Fresenius SE & Co. KGaA 2014 / 2019	€ 500 million	Sept. 24, 2019	0.000%	€ 49.6611	467	460
Fresenius Medical Care AG & Co. KGaA 2014 / 2020	€ 400 million	Jan. 31, 2020	1.125%	€ 73.6354	376	372
Convertible bonds					843	832

The fair value of the derivative embedded in the convertible bonds of Fresenius SE & Co. KGaA was € 182 million at September 30, 2015. The derivative embedded in the convertible bonds of Fresenius Medical Care AG & Co. KGaA (FMC-AG & Co. KGaA) was recognized with a fair value of € 92 million at September 30, 2015. Fresenius SE & Co. KGaA and FMC-AG & Co. KGaA have purchased stock options (call options) to secure against future fair value fl uctuations of these derivatives. The call options also had an aggregate fair value of € 182 million and € 92 million, respectively, at September 30, 2015.

The conversions will be cash-settled. Any increase of Fresenius' share price and of Fresenius Medical Care's share price above the conversion price would be offset by a corresponding value increase of the call options.

The derivatives embedded in the convertible bonds and the call options are recognized in other non-current liabilities / assets in the consolidated statement of fi nancial position.

15. PENSIONS AND SIMILAR OBLIGATIONS

DEFINED BENEFIT PENSION PLANS

At September 30, 2015, the pension liability of the Fresenius Group was € 1,162 million. The current portion of the pension liability of € 18 million is recognized in the consolidated statement of fi nancial position within short-term accrued expenses and other short-term liabilities. The non-current portion of € 1,144 million is recorded as pension liability.

Contributions to Fresenius Group's pension fund were € 23 million in the fi rst three quarters of 2015. The Fresenius Group expects approximately € 25 million contributions to the pension fund during 2015.

Defi ned benefi t pension plans' net periodic benefi t costs of € 84 million (Q1 – 3 / 2014: € 57 million) were comprised of the following components:

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Service cost	35	26
Interest cost	33	32
Expected return on plan assets	- 16	- 14
Amortization of unrealized actuarial losses, net	32	12
Amortization of prior service costs	–	1
Amortization of transition obligations	–	–
Settlement loss	0	–
Net periodic benefi t cost	84	57

NONCONTROLLING INTEREST

NONCONTROLLING INTEREST SUBJECT TO PUT PROVISIONS

Noncontrolling interest subject to put provisions changed as follows:

€ in millions	Q1 – 3 / 2015
Noncontrolling interest subject to put provisions as of January 1, 2015	681
Noncontrolling interest subject to put provisions in profi t	101
Purchase of noncontrolling interest subject to put provisions	8
Dividend payments	- 106
Currency effects and other changes	175
Noncontrolling interest subject to put provisions as of September 30, 2015	859

99.5% of noncontrolling interest subject to put provisions applied to Fresenius Medical Care at September 30, 2015.

As of September 30, 2015 and December 31, 2014, put options with an aggregate purchase obligation of € 161 million and € 102 million, respectively, were exercisable. One put option was exercised for a total consideration of € 425 thousand in the fi rst three quarters of 2015 (Q1 – 3 / 2014: two put options of € 2 million).

NONCONTROLLING INTEREST NOT SUBJECT TO PUT PROVISIONS

As of September 30, 2015 and December 31, 2014, noncontrolling interest not subject to put provisions in the Fresenius Group was as follows:

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Noncontrolling interest
not subject to put provisions in
Fresenius Medical Care AG & Co. KGaA	5,934	5,360
Noncontrolling interest
not subject to put provisions
in VAMED AG	44	43
Noncontrolling interest
not subject to put provisions
in the business segments
Fresenius Medical Care	548	482
Fresenius Kabi	117	123
Fresenius Helios	136	134
Fresenius Vamed	7	6
Total noncontrolling interest
not subject to put provisions	6,786	6,148

Noncontrolling interest not subject to put provisions changed as follows:

€ in millions	Q1 – 3 / 2015
Noncontrolling interest not subject to put provisions as of January 1, 2015	6,148
Noncontrolling interest not subject to put provisions in profi t	560
Stock options	46
Purchase of noncontrolling interest not subject to put provisions	19
Dividend payments	- 237
Currency effects and other changes	250
Noncontrolling interest not subject to put provisions as of September 30, 2015	6,786

FRESENIUS SE & CO. KGAA SHAREHOLDERS' EQUITY

SUBSCRIBED CAPITAL

During the fi rst three quarters of 2015, 3,467,290 stock options were exercised. Consequently, as of September 30, 2015, the subscribed capital of Fresenius SE & Co. KGaA consisted of 544,999,890 bearer ordinary shares. The shares are issued as non-par value shares. The proportionate amount of the subscribed capital is € 1.00 per share.

CONDITIONAL CAPITAL

The following Conditional Capitals exist in order to fulfi ll the subscription rights under the stock option plans of Fresenius SE & Co. KGaA: Conditional Capital I (Stock Option Plan 2003), Conditional Capital II (Stock Option Plan 2008) and Conditional Capital IV (Stock Option Plan 2013) (see note 24, Stock options). Another Conditional Capital III exists for the authorization to issue option bearer bonds and / or convertible bonds.

The following table shows the development of the Conditional Capital:

Conditional Capital I Fresenius AG Stock Option Plan 2003 Conditional Capital II Fresenius SE Stock Option Plan 2008 Conditional Capital III, approved on May 16, 2014 Conditional Capital IV Fresenius SE & Co. KGaA Stock Option Plan 2013 Total Conditional Capital as of January 1, 2015 Fresenius AG Stock Option Plan 2003 – options exercised Fresenius SE Stock Option Plan 2008 – options exercised Total Conditional Capital as of September 30, 2015	in €	Ordinary shares
		5,773,056
		10,901,188
		48,971,202
		25,200,000
		90,845,446
		- 478,809
		- 2,988,481
		87,378,156

DIVIDENDS

Under the German Stock Corporation Act (AktG), the amount of dividends available for distribution to shareholders is based upon the unconsolidated retained earnings of Fresenius SE & Co. KGaA as reported in its statement of fi nancial position determined in accordance with the German Commercial Code (HGB).

In May 2015, a dividend of € 0.44 per bearer ordinary share was approved by Fresenius SE & Co. KGaA's shareholders at the Annual General Meeting and paid. The total dividend payment was € 238 million.

18. OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) is comprised of all amounts recognized directly in equity (net of tax) resulting from the currency translation of foreign subsidiaries' fi nancial statements and the effects of measuring fi nancial instruments at their fair value as well as the change in benefi t obligation.

Changes in accumulated other comprehensive income (loss) net of tax by component were as follows:

€ in millions	Cash fl ow hedges	Change of fair value of available for sale fi nancial assets	Foreign currency translation	Actuarial gains / losses on defi ned benefi t pension plans	Total, before non controlling interest	Non controlling interest	Total, after non controlling interest
Balance as of December 31, 2013	- 107	17	- 99	- 162	- 351	- 255	- 606
Other comprehensive income (loss) before reclassifi cations	- 15	–	332	- 7	310	408	718
Amounts reclassifi ed from accumulated
other comprehensive income (loss)	13	- 16	–	5	2	14	16
Other comprehensive income (loss), net	- 2	- 16	332	- 2	312	422	734
Balance as of September 30, 2014	- 109	1	233	- 164	- 39	167	128
Balance as of December 31, 2014	- 109	1	294	- 305	- 119	189	70
Other comprehensive income (loss) before reclassifi cations	8	–	212	- 15	205	360	565
Amounts reclassifi ed from accumulated
other comprehensive income (loss)	7	0	–	11	18	27	45
Other comprehensive income (loss), net	15	–	212	- 4	223	387	610
Balance as of September 30, 2015	- 94	1	506	- 309	104	576	680

Reclassifi cations out of accumulated other comprehensive income (loss) into net income were as follows:

	Amount of gain or loss reclassifi ed from accumulated other comprehensive income (loss) 1
€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014	Affected line item in the consolidated statement of income
Details about accumulated other comprehensive income (loss) components
Cash fl ow hedges
Interest rate contracts	28	25	Interest income / expense
Foreign exchange contracts	16	3	Cost of sales
Foreign exchange contracts	- 9	3	Selling, general and administrative expenses
Foreign exchange contracts	0	–	Interest income / expense
Other comprehensive income (loss)	35	31
Tax expense or benefi t	- 11	- 8
Other comprehensive income (loss), net	24	23
Change of fair value of available for sale fi nancial assets	0	- 23	Selling, general and administrative expenses
Tax expense or benefi t	0	7
Other comprehensive income (loss), net	0	- 16
Amortization of defi ned benefi t pension items
Prior service costs	–	1	2
Transition obligations	–	–	2
Actuarial gains / losses on defined benefit pension plans	32	12	2
Other comprehensive income (loss)	32	13
Tax expense or benefi t	- 11	- 4
Other comprehensive income (loss), net	21	9
Total reclassifi cations for the period	45	16

1 Gains are shown with a negative sign, losses with a positive sign.

2 Net periodic benefi t cost is allocated as personnel expense within cost of sales or selling,

general and administrative expenses as well as research and development expenses.

OTHER NOTES

19. LEGAL AND REGULATORY MATTERS

The Fresenius Group is routinely involved in numerous claims, lawsuits, regulatory and tax audits, investigations and other legal matters arising, for the most part, in the ordinary course of its business of providing health care services and products. Legal matters that the Fresenius Group currently deems to be material or noteworthy are described below. For the matters described below in which the Fresenius Group believes a loss is both reasonably possible and estimable, an estimate of the loss or range of loss exposure is provided. For the other matters described below, the Fresenius Group believes that the loss probability is remote and / or the loss or range of possible losses cannot be reasonably estimated at this time. The outcome of litigation and other legal matters is always diffi cult to predict accurately and outcomes that are not consistent with Fresenius Group's view of the merits can occur. The Fresenius Group believes that it has valid defenses to the legal matters pending against it and is defending itself vigorously. Nevertheless, it is possible that the resolution of one or more of the legal matters currently pending or threatened could have a material adverse effect on its business, results of operations and fi nancial condition.

Further information regarding legal disputes, court proceedings and investigations can be found in detail in the consolidated fi nancial statements in the 2014 Annual Report. In the following, only the changes during the fi rst three quarters ended September 30, 2015 compared to the information provided in the consolidated fi nancial statements are described. These changes should be read in conjunction with the overall information in the consolidated fi nancial statements in the 2014 Annual Report; defi ned terms or abbreviations having the same meaning as in the 2014 Annual Report

BAXTER PATENT DISPUTE "LIBERTY CYCLER"

The parties have resolved this patent dispute.

FRESENIUS MEDICAL CARE HOLDINGS – QUI TAM COMPLAINT (MASSACHUSETTS)

On February 15, 2011, a whistleblower (relator) action under the False Claims Act against Fresenius Medical Care Holdings, Inc. (FMCH) was unsealed by order of the United States District Court for the District of Massachusetts and served by the relator. The United States did not intervene initially in the case United States ex rel. Chris Drennen v. Fresenius Medical Care Holdings, Inc., 2009 Civ. 10179 (D. Mass.). The relator's complaint, which was fi rst fi led under seal in February 2009, alleged that FMCH sought and received reimbursement from government payors for serum ferritin and multiple forms of hepatitis B laboratory tests that were medically unnecessary or not properly ordered by a physician. Discovery on the relator's complaint closed in May 2015. On October 2, 2015, the United States Attorney moved to intervene on the relator's complaint with respect only to certain hepatitis B surface antigen tests performed prior to 2011, when Medicare reimbursement rules for such tests changed. FMCH believes that the allegations of the complaint are without merit and will defend the litigation vigorously.

SUBPOENA "AMERICAN ACCESS CARE, LLC"

As of September 30, 2015, Fresenius Medical Care had entered into settlements of allegation made by the United States Attorneys for Connecticut, Southern Florida, and Rhode Island under which Fresenius Medical Care paid approximately US\$ 8 million in exchange for releases related to activities of American Access Care, LLC (AAC) prior to the acquisition. Pursuant to the AAC acquisition agreement the prior owners are obligated to indemnify Fresenius Medical Care for payments under these settlements, subject to certain limitations and deductibles. The three settlements implicate

only actions and events occurring prior to Fresenius Medical Care's acquisition of AAC. The Eastern Virginia investigation remains active and outstanding. It appears to relate to issues similar to the others, but is being conducted in part as a grand jury proceeding.

FRESENIUS VASCULAR ACCESS REVIEW

Fresenius Medical Care has been advised that the Offi ce of Inspector General of the United States Department of Health and Human Services intends to review utilization and invoicing by Fresenius Vascular Access facilities as a whole for a period beginning after the acquisition of American Access Care, LLC (AAC).

SUBPOENAS "MASSACHUSETTS AND LOUISIANA"

In December 2012, Fresenius Medical Care Holdings, Inc. (FMCH) received a subpoena from the United States Attorney for the District of Massachusetts requesting production of a broad range of documents related to two products manufactured by FMCH, electron-beam sterilization of dialyzers and the Liberty peritoneal dialysis cycler. FMCH has cooperated fully in the government's investigation. In December 2014, FMCH was advised that the government's investigation was precipitated by a whistleblower, who fi rst fi led a complaint under seal in June 2013. In September 2014, the government declined to intervene in the whistleblower's actions. On March 31, 2015, the relator served his complaint styled Reihanifam v. Fresenius USA, Inc., 2013 Civ. 11486 (D. Mass.). On May 14, 2015, the Court dismissed without prejudice the relator's False Claims Act allegations after receiving the United States' confi rmation that it would not intervene as to those allegations.

In January 2013 and April 2015, FMCH received subpoenas from the United States Attorney for the Western District of Louisiana and the Attorney General for the Commonwealth of Massachusetts, respectively, requesting discovery responses relating to the GranuFlo ® and NaturaLyte ® acid concentrate products that are also the subject of personal injury litigation described above. FMCH has cooperated fully in the government's investigations.

CIVIL COMPLAINT "HAWAII"

In July 2015, the Attorney General for Hawaii issued a civil complaint under the Hawaii False Claims Act styled Hawaii v. Liberty Dialysis – Hawaii, LLC et al., Case No. 15-1-1357-07 (Hawaii 1st Circuit) alleging that Xerox State Healthcare, LLC, M Group Consulting, LLC and certain Liberty Healthcare subsidiaries of FMCH conspired to over bill Hawaii Medicaid for Liberty's Epogen administrations to Hawaii Medicaid patients during the period from 2006 through 2010, prior to the time of FMCH's acquisition of Liberty. The complaint alleges that Xerox State Healthcare, LLC, which acted as Hawaii's contracted administrator for its Medicaid program reimbursement operations during 2006 – 2010, provided incorrect and unauthorized billing guidance to Liberty and its consultant, M Group Consulting, LLC, which Liberty relied on for purposes of its Epogen billing to the Hawaii Medicaid program. The complaint seeks civil damages authorized under the Hawaii False Claims Act. FMCH will vigorously contest the complaint.

SUBPOENA "COLORADO"

On August 31, 2015, Fresenius Medical Care Holdings, Inc. (FMCH) received a subpoena from the United States Attorney for the District of Colorado inquiring into FMCH's participation in dialysis facility joint ventures in which physicians are partners. FMCH is cooperating fully in the investigation.

The Fresenius Group regularly analyzes current information including, as applicable, the Fresenius Group's defenses and insurance coverage and, as necessary, provides accruals for probable liabilities for the eventual disposition of these matters.

The Fresenius Group, like other health care providers, conducts its operations under intense government regulation and scrutiny. It must comply with regulations which relate to or govern the safety and effi cacy of medical products and supplies, the marketing and distribution of such products, the operation of manufacturing facilities, laboratories and dialysis clinics, and environmental and occupational health and safety. With respect to its development, manufacture, marketing and distribution of medical products, if such compliance is not maintained, the Fresenius Group could be subject to significant adverse regulatory actions by the U.S. Food and Drug Administration (FDA) and comparable regulatory authorities outside the United States. These regulatory actions could include warning letters or other enforcement notices from the FDA and / or comparable foreign regulatory authority, which may require the Fresenius Group to expend signifi cant time and resources in order to implement appropriate corrective actions. If the Fresenius Group does not address matters raised in warning letters or other enforcement notices to the satisfaction of the FDA and / or comparable regulatory authorities outside the United States, these regulatory authorities could take additional actions, including product recalls, injunctions against the distribution of products or operation of manufacturing plants, civil penalties, seizures of Fresenius Group's products and / or criminal prosecution. FMCH is currently engaged in remediation efforts with respect to three pending FDA warning letters, Fresenius Kabi with respect to two pending FDA warning letters. The Fresenius Group must also

comply with the laws of the United States, including the federal Anti-Kickback Statute, the federal False Claims Act, the federal Stark Law and the federal Foreign Corrupt Practices Act as well as other federal and state fraud and abuse laws. Applicable laws or regulations may be amended, or enforcement agencies or courts may make interpretations that differ from Fresenius Group's interpretations or the manner in which it conducts its business. Enforcement has become a high priority for the federal government and some states. In addition, the provisions of the False Claims Act authorizing payment of a portion of any recovery to the party bringing the suit encourage private plaintiffs to commence whistleblower actions. By virtue of this regulatory environment, Fresenius Group's business activities and practices are subject to extensive review by regulatory authorities and private parties, and continuing audits, subpoenas, other inquiries, claims and litigation relating to Fresenius Group's compliance with appli cable laws and regulations. The Fresenius Group may not always be aware that an inquiry or action has begun, particularly in the case of "whistleblower" actions, which are initially fi led under court seal.

20. FINANCIAL INSTRUMENTS

VALUATION OF FINANCIAL INSTRUMENTS

The following table presents the carrying amounts and fair values as well as the fair value hierarchy levels of Fresenius Group's fi nancial instruments as of September 30, 2015 and December 31, 2014, classifi ed into classes:

		September 30, 2015		December 31, 2014
€ in millions	Fair value hierarchy level	Carrying amount	Fair value	Carrying amount	Fair value
Cash and cash equivalents	1	975	975	1,175	1,175
Assets recognized at carrying amount	3	4,872	4,859	4,419	4,420
Assets recognized at fair value	1	159	159	148	148
Liabilities recognized at carrying amount	2	16,336	17,203	16,511	17,356
Liabilities recognized at fair value	2	290	290	161	161
Noncontrolling interest subject to put provisions recognized at fair value	3	859	859	681	681
Derivatives for hedging purposes	2	277	277	90	90

The signifi cant methods and assumptions used to estimate the fair values of fi nancial instruments as well as classifi cation of fair value measurements according to the three-tier fair value hierarchy are as follows:

Cash and cash equivalents are stated at nominal value, which equals the fair value.

The nominal value of short-term fi nancial instruments such as accounts receivable and payable and short-term debt represents its carrying amount, which is a reasonable estimate of the fair value due to the relatively short period to maturity for these instruments.

The fair values of major long-term fi nancial instruments are calculated on the basis of market information. Financial instruments for which market quotes are available are measured with the market quotes at the reporting date. The fair values of the other long-term fi nancial liabilities are calculated at the present value of respective future cash fl ows. To determine these present values, the prevailing interest rates and credit spreads for the Fresenius Group as of the date of the statement of fi nancial position are used.

The class assets recognized at carrying amount consists of trade accounts receivable and a loan which Fresenius Medical Care granted to a middle-market dialysis provider. The fair value of the loan is based on signifi cant unobservable inputs of comparable instruments and thus the class is classifi ed as fair value hierarchy Level 3.

The class assets recognized at fair value was comprised of shares in funds. The fair values of these assets are calculated on the basis of market information. The fair value of available for sale fi nancial assets quoted in an active market is based on price quotations at the period-end date (Level 1). Therefore, this class is classifi ed as Level 1.

The class liabilities recognized at carrying amount is classifi ed as hierarchy Level 2.

The derivatives embedded in the convertible bonds are included in the class liabilities recognized at fair value. The fair value of the embedded derivatives is calculated using the difference between the market value of the convertible bond and the market value of an adequate straight bond discounted with the market interest rates as of the reporting date. The class was classifi ed as Level 2.

The valuation of the class noncontrolling interest subject to put provisions recognized at fair value is determined using signifi cant unobservable inputs. It is therefore classifi ed as Level 3.

Derivatives, mainly consisting of interest rate swaps and foreign exchange forward contracts, are valued as follows: The fair value of interest rate swaps is calculated by discounting the future cash fl ows on the basis of the market interest rates applicable for the remaining term of the contract as of the date of the statement of fi nancial position. To determine the fair value of foreign exchange forward contracts, the contracted forward rate is compared to the current forward rate for the remaining term of the contract as of the date of the statement of fi nancial position. The result is then discounted on the basis of the market interest rates prevailing at the date of the statement of fi nancial position for the respective currency.

Fresenius Group's own credit risk is incorporated in the fair value estimation of derivatives that are liabilities. Counterparty credit risk adjustments are factored into the valuation of derivatives that are assets. The Fresenius Group monitors and analyses the credit risk from derivative fi nancial instruments on a regular basis. For the valuation of derivative fi nancial instruments, the credit risk is considered in the fair value of every individual instrument. The basis for the default

probability are Credit Default Swap Spreads of each counterparty appropriate for the duration. The calculation of the credit risk considered in the valuation is done by multiplying the default probability appropriate for the duration with the expected discounted cash fl ows of the derivative fi nancial instrument.

The class of derivatives for hedging purposes includes the call options which have been purchased to hedge the convertible bonds. The fair values of these call options are derived

FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS

from market quotes. For the fair value measurement of the class deriv atives for hedging purposes, signifi cant other observable inputs are used. Therefore, the class is classifi ed as Level 2 in accordance with the defi ned fair value hierarchy levels.

Currently, there is no indication that a decrease in the value of Fresenius Group's fi nancing receivables is probable. Therefore, the allowances on credit losses of fi nancing receivables are immaterial.

		September 30, 2015		December 31, 2014
€ in millions	Assets	Liabilities	Assets	Liabilities
Interest rate contracts (non-current)	0	6	1	6
Foreign exchange contracts (current)	15	18	9	43
Foreign exchange contracts (non-current)	2	–	0	–
Derivatives designated as hedging instruments 1	17	24	10	49
Interest rate contracts (non-current)	0	1	0	1
Foreign exchange contracts (current) 1	27	17	21	37
Foreign exchange contracts (non-current) 1	–	–	–	–
Derivatives embedded in the convertible bonds	0	274	0	145
Stock options to secure the convertible bonds 1	274	0	145	0
Derivatives not designated as hedging instruments	301	292	166	183

Derivatives designated as hedging instruments, foreign exchange contracts not designated as hedging instruments

and stock options to secure the convertible bonds are classifi ed as derivatives for hedging purposes.

Derivative fi nancial instruments are marked to market each reporting period, resulting in carrying amounts equal to fair values at the reporting date.

Derivatives not designated as hedging instruments, which are derivatives that do not qualify for hedge accounting, are also solely entered into to hedge economic business transactions and not for speculative purposes.

Derivatives for hedging purposes as well as the derivatives embedded in the convertible bonds were recognized at gross value within other assets in an amount of € 318 million and other liabilities in an amount of € 315 million.

The current portion of interest rate contracts and foreign exchange contracts indicated as assets in the preceding table is recognized within other current assets in the consolidated statement of fi nancial position, while the current portion of those indicated as liabilities is included in short-term accrued expenses and other short-term liabilities. The non-current portions indicated as assets or liabilities are recognized in other non-current assets or in long-term accrued expenses and other long-term liabilities, respectively. The derivatives embedded in the convertible bonds and the call options to secure the convertible bonds are recognized in other noncurrent liabilities / assets in the consolidated statement of fi nancial position.

EFFECT OF DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS ON THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Q1 – 3 / 2015
€ in millions	Gain or loss recognized in other comprehensive income (loss) (effective portion)	Gain or loss reclassifi ed from accumulated other comprehensive income (loss) (effective portion)	Gain or loss recognized in the consolidated statement of income
Interest rate contracts	- 7	28	0
Foreign exchange contracts	11	7	0
Derivatives in cash fl ow hedging relationships 1	4	35	0
Foreign exchange contracts			0
Derivatives in fair value hedging relationships			0
Derivatives designated as hedging instruments	4	35	0

		Q1 – 3 / 2014
€ in millions	Gain or loss recognized in other comprehensive income (loss) (effective portion)	Gain or loss reclassifi ed from accumulated other comprehensive income (loss) (effective portion)	Gain or loss recognized in the consolidated statement of income
Interest rate contracts	–	25	2
Foreign exchange contracts	- 33	6	0
Derivatives in cash fl ow hedging relationships 1	- 33	31	2
Foreign exchange contracts			- 10
Derivatives in fair value hedging relationships			- 10
Derivatives designated as hedging instruments	- 33	31	- 8

The amount of gain or loss recognized in the consolidated statement of income solely relates to the ineffective portion.

EFFECT OF DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS ON THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Gain or loss recognized in the consolidated statement of income
€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Interest rate contracts	–	–
Foreign exchange contracts	14	38
Derivatives not designated as hedging instruments	14	38

Gains from derivatives in fair value hedging relationships and from foreign exchange contracts not designated as hedging instruments recognized in the consolidated statement of income are faced by losses from the underlying transactions in the corresponding amount.

The Fresenius Group expects to recognize a net amount of € 4 million of the existing losses for foreign exchange contracts deferred in accumulated other comprehensive income (loss) in the consolidated statement of income within the next 12 months. For interest rate contracts, the Fresenius Group expects to recognize € 29 million of losses in the course of normal business during the next 12 months in interest expense.

Gains and losses from foreign exchange contracts and the corresponding underlying transactions are accounted for as cost of sales, selling, general and administrative expenses and net interest. Gains and losses resulting from interest rate contracts are recognized as net interest in the consolidated statement of income.

In the fi rst three quarters of 2015, no losses (Q1 – 3 / 2014: € 16 million) for available for sale fi nancial assets were recognized in other comprehensive income (loss).

MARKET RISK

General

The Fresenius Group is exposed to effects related to foreign exchange fl uctuations in connection with its international business activities that are denominated in various currencies. In order to fi nance its business operations, the Fresenius Group issues senior notes and commercial papers and enters into mainly long-term credit agreements and euro notes (Schuld scheindarlehen) with banks. Due to these fi nancing activities, the Fresenius Group is exposed to interest risk caused by changes in variable interest rates and the risk of changes in the fair value of statement of fi nancial position items bearing fi xed interest rates.

In order to manage the risk of interest rate and foreign exchange rate fl uctuations, the Fresenius Group enters into certain hedging transactions with highly rated fi nancial insti tutions as authorized by the Management Board. Derivative fi nancial instruments are not entered into for trading purposes.

The Fresenius Group defi nes benchmarks for individual exposures in order to quantify interest and foreign exchange risks. The benchmarks are derived from achievable and sustainable market rates. Depending on the individual benchmarks, hedging strategies are determined and generally implemented by means of micro hedges.

Derivative fi nancial instruments

Classifi cation

To reduce the credit risk arising from derivatives, the Fresenius Group concluded master netting agreements with banks. Through such agreements, positive and negative fair values of the derivative contracts could be offset against one another

if a partner becomes insolvent. This offsetting is valid for transactions where the aggregate amount of obligations owed to and receivable from are not equal. If insolvency occurs, the party which owes the larger amount is obliged to pay the other party the difference between the amounts owed in the form of one net payment.

Fresenius elects not to offset the fair values of derivative fi nancial instruments subject to master netting agreements in the consolidated statement of fi nancial position.

At September 30, 2015 and December 31, 2014, the Fresenius Group had € 41 million and € 30 million of derivative fi nancial assets subject to netting arrangements and € 40 million and € 77 million of derivative fi nancial liabilities subject to netting arrangements. Offsetting these derivative fi nancial instruments would have resulted in net assets of € 24 million and € 15 million as well as net liabilities of € 23 million and € 62 million at September 30, 2015 and December 31, 2014, respectively.

Foreign exchange risk management

Solely for the purpose of hedging existing and foreseeable foreign exchange transaction exposures, the Fresenius Group enters into foreign exchange forward contracts and, on a small scale, foreign exchange options. To ensure that no foreign exchange risks result from loans in foreign currencies, the Fresenius Group enters into foreign exchange swap contracts.

As of September 30, 2015, the notional amounts of foreign exchange contracts totaled € 2,092 million. These foreign exchange contracts have been entered into to hedge risks from operational business and in connection with loans in foreign currency. The predominant part of the foreign exchange forward contracts to hedge risks from operational business was recognized as cash fl ow hedge, while foreign exchange contracts in connection with loans in foreign currencies are partly recognized as fair value hedges. The fair value of cash fl ow hedges was - € 1 million. As of September 30, 2015, no fair value hedges were recognized in the Fresenius Group.

As of September 30, 2015, the Fresenius Group was party to foreign exchange contracts with a maximum maturity of 33 months.

Interest rate risk management

The Fresenius Group enters into interest rate swaps and, on a small scale, into interest rate options in order to protect against the risk of rising interest rates. These interest rate derivatives are mainly designated as cash fl ow hedges and have been entered into in order to convert payments based on variable interest rates into payments at a fi xed interest rate and in anticipation of future debt issuances (pre-hedges).

As of September 30, 2015, the euro interest rate swaps had a notional volume of € 594 million and a fair value of - € 7 million. The euro interest rate swaps expire in the years 2016 to 2022.

The pre-hedges are used to hedge interest rate exposures with regard to interest rates which are relevant for the future debt issuance and which could rise until the respective debt is actually issued. These pre-hedges are settled at the issuance date of the corresponding debt with the settlement amount recorded in accumulated other comprehensive income (loss) amortized to interest expense over the life of the debt. At September 30, 2015 and December 31, 2014, the Fresenius Group had € 76 million and € 89 million, respectively, related to such settlements of pre-hedges deferred in accumulated other comprehensive income (loss), net of tax.

21. SUPPLEMENTARY INFORMATION ON CAPITAL MANAGEMENT

The Fresenius Group has a solid fi nancial profi le. As of September 30, 2015, the equity ratio was 40.7% and the debt ratio (debt / total assets) was 36.1%. As of September 30, 2015, the leverage ratio (pro forma, before special items) on the basis of net debt / EBITDA was 2.9.

The aims of the capital management and further information can be found in the consolidated fi nancial statements in the 2014 Annual Report.

The Fresenius Group is covered by the rating agencies Moody's, Standard & Poor's and Fitch.

The following table shows the company rating of Fresenius SE & Co. KGaA:

	Sept. 30, 2015	Dec. 31, 2014
Standard & Poor's
Corporate Credit Rating	BBB -	BB +
Outlook	stable	positive
Moody's
Corporate Credit Rating	Ba1	Ba1
Outlook	stable	negative
Fitch
Corporate Credit Rating	BB +	BB +
Outlook	stable	positive

22. SUPPLEMENTARY INFORMATION ON THE CONSOLIDATED STATEMENT OF CASH FLOWS The following table provides additional information with regard to the consolidated statement of cash fl ows:

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Interest paid	482	489
Income taxes paid	598	558

Cash paid for acquisitions (without investments in licenses) consisted of the following:

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Assets acquired	211	2,619
Liabilities assumed	- 26	- 664
Noncontrolling interest	- 8	-87
Notes assumed in connection with acquisitions	- 27	- 217
Cash paid	150	1,651
Cash acquired	- 4	- 201
Cash paid for acquisitions, net	146	1,450
Cash paid for investments, net of cash acquired	70	190
Cash paid for intangible assets, net	23	7
Total cash paid for acquisitions and investments, net of cash acquired, and net purchases of intangible assets	239	1,647

23. NOTES ON THE CONSOLIDATED SEGMENT REPORTING

GENERAL

The consolidated segment reporting shown on pages 24 and 25 of this interim report is an integral part of the notes.

The Fresenius Group has identifi ed the business segments Fresenius Medical Care, Fresenius Kabi, Fresenius Helios and Fresenius Vamed, which corresponds to the internal organi za tional and reporting structures (Management Approach) at September 30, 2015.

The business segments were identifi ed in accordance with FASB ASC Topic 280, Segment Reporting, which defi nes the segment reporting requirements in the annual fi nancial statements and interim reports with regard to the operating business, product and service businesses and regions. The business segments of the Fresenius Group are as follows:

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals with chronic kidney failure. As of September 30, 2015, Fresenius Medical Care was treating 290,250 patients in 3,402 dialysis clinics.

Fresenius Helios is Germany's largest hospital operator. On September 30, 2015, the HELIOS Group operated 111 hospitals: 87 acute care clinics, including 7 maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal as well as 24 post-acute care clinics. Fresenius Helios has more than 34,000 beds and treats approximately 4.5 million patients – including 1.2 million inpatients – each year.

Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide.

The segment Corporate / Other is mainly comprised of the holding functions of Fresenius SE & Co. KGaA as well as Fresenius Netcare GmbH, which provides services in the fi eld of information technology. In addition, the segment Corporate / Other includes inter segment consolidation adjustments as well as special items (see note 3, Special items).

NOTES ON THE BUSINESS SEGMENTS

Explanations regarding the notes on the business segments can be found in the consolidated fi nancial statements in the 2014 Annual Report.

RECONCILIATION OF KEY FIGURES TO CONSOLIDATED EARNINGS

€ in millions	Q1 – 3 / 2015	Q1 – 3 / 2014
Total EBIT of reporting segments	2,868	2,232
General corporate expenses Corporate / Other (EBIT)	- 47	30
Group EBIT	2,821	2,262
Net interest	- 476	- 431
Income before income taxes	2,345	1,831

RECONCILIATION OF NET DEBT WITH THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

€ in millions	Sept. 30, 2015	Dec. 31, 2014
Short-term debt	422	230
Short-term loans from related parties	6	3
Current portion of long-term debt and capital lease obligations	559	753
Current portion of Senior Notes	250	682
Long-term debt and capital lease obligations, less current portion	5,864	5,977
Senior Notes, less current portion	7,293	6,977
Convertible bonds	843	832
Debt	15,237	15,454
less cash and cash equivalents	975	1,175
Net debt	14,262	14,279

24. STOCK OPTIONS

FRESENIUS SE & CO. KGAA STOCK OPTION PLANS

As of September 30, 2015, Fresenius SE & Co. KGaA had three stock option plans in place: the Fresenius AG Stock Option Plan 2003 (2003 Plan) which is based on convertible bonds, the stock option based Fresenius SE Stock Option Plan 2008 (2008 Plan) and the Fresenius SE & Co. KGaA Long Term Incentive Program 2013 (2013 LTIP) which is based on stock options and phantom stocks. The 2013 LTIP is the only program under which stock options can be granted.

Transactions during the fi rst three quarters of 2015 On July 27, 2015, Fresenius SE & Co. KGaA awarded 2,222,215 stock options under the 2013 LTIP, including 337,500 options to members of the Management Board of Fresenius Management SE, at an exercise price of € 60.64, a fair value of € 14.76 each and a total fair value of € 33 million, which will be amortized over the four-year vesting period. Fresenius SE & Co. KGaA also awarded 290,487 phantom stocks, including 73,307 phantom stocks granted to members of the Management Board of Fresenius Management SE, at a measurement date (September 30, 2015) fair value of € 57.48 each and a total fair value of € 17 million, which will be revalued if the fair value changes, and amortized over the four-year vesting period.

During the fi rst three quarters of 2015, Fresenius SE & Co. KGaA received cash of € 72 million from the exercise of 3,467,290 stock options.

567,114 convertible bonds were outstanding and exercisable under the 2003 Plan at September 30, 2015. The members of the Fresenius Management SE Management Board held no more convertible bonds. At September 30, 2015, out of 4,502,970 outstanding stock options issued under the 2008 Plan, 4,446,690 were exercisable and 882,640 were held by the members of the Fresenius Management SE Management Board. 6,337,717 stock options issued under the 2013 LTIP

were outstanding at September 30, 2015. The members of the Fresenius Management SE Management Board held 967,500 stock options. 920,118 phantom stocks issued under the 2013 LTIP were outstanding at September 30, 2015. The members of the Fresenius Management SE Management Board held 236,729 phantom stocks.

As of September 30, 2015, 5,013,804 options for ordinary shares were outstanding and exercisable. On September 30, 2015, total unrecognized compensation cost related to nonvested options granted under the 2008 Plan and the 2013 LTIP was € 48 million. This cost is expected to be recognized over a weighted-average period of 3.3 years.

FRESENIUS MEDICAL CARE AG & CO. KGAA STOCK OPTION PLANS

On July 27, 2015, FMC-AG & Co. KGaA awarded 2,957,760 options under the 2011 Long Term Incentive Program, including 502,980 stock options granted to members of the Management Board of FMC Management AG, at an exercise price of € 76.99, a fair value of € 15.02 each and a total fair value of € 44 million, which will be amortized over the four-year vesting period. FMC-AG & Co. KGaA awarded 584,844 phantom stocks, including 62,516 phantom stocks granted to members of the Management Board of FMC Management AG, at a measurement date (September 30, 2015) fair value of € 65.80 each and a total fair value of € 38 million, which will be revalued if the fair value changes, and amortized over the four-year vesting period.

During the fi rst three quarters of 2015, 1,275,644 stock options were exercised. Fresenius Medical Care AG & Co. KGaA received cash of € 48 million upon exercise of these stock options and € 12 million from a related tax benefi t.

25. RELATED PARTY TRANSACTIONS

Prof. Dr. med. D. Michael Albrecht, a member of the Supervisory Board of Fresenius SE & Co. KGaA, is medical director and spokesman of the management board of the University Hospital Carl Gustav Carus Dresden and a member of the supervisory board of the University Hospital Aachen. The Fresenius Group maintains business relations with these hospitals in the ordinary course and under customary conditions.

Prof. Dr. h. c. Roland Berger, a member of the Supervisory Board of Fresenius Management SE and of Fresenius SE & Co. KGaA, is a partner of Roland Berger Strategy Consultants Holding GmbH. In the fi rst three quarters of 2015, after discussion and approval by the Supervisory Board of Fresenius Management SE and the Supervisory Board of Fresenius SE & Co. KGaA, the Fresenius Group paid € 0.05 million to affi liated companies of the Roland Berger group for consulting serv ices rendered.

Klaus-Peter Müller, a member of the Supervisory Board of Fresenius Management SE and of Fresenius SE & Co. KGaA, is the chairman of the supervisory board of Commerzbank AG. The Fresenius Group maintains business relations with Commerzbank under customary conditions.

On May 20, 2015, at the Annual General Meeting of Fresenius SE & Co. KGaA, Michael Diekmann, chairman of the management board of Allianz SE until May 6, 2015, was elected to the Supervisory Boards of Fresenius Management SE and of Fresenius SE & Co. KGaA. In the fi rst three quarters of 2015, the Fresenius Group paid € 8.6 million for insurance premiums to the Allianz group under customary conditions.

Dr. Dieter Schenk, deputy chairman of the Supervisory Board of Fresenius Management SE, is a partner in the international law fi rm Noerr LLP, which provides legal serv ices to the Fresenius Group. In the fi rst three quarters of 2015, after discussion and approval of each mandate by the Supervisory Board of Fresenius Management SE, the Fresenius Group paid € 0.6 million to this law fi rm for legal services rendered.

The payments mentioned in this note are net amounts. In addition, VAT and insurance tax were paid.

26. SUBSEQUENT EVENTS

There have been no signifi cant changes in the Fresenius Group's operating environment following the end of the fi rst three quarters of 2015. No other events of material importance on the assets and liabilities, fi nancial position, and results of operations of the Group have occurred following the end of the fi rst three quarters of 2015.

27. CORPORATE GOVERNANCE

For each consolidated stock exchange listed entity, the declaration pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz) has been issued and made available to shareholders on the website of Fresenius SE & Co. KGaA (www.fresenius.com), and of Fresenius Medical Care AG & Co. KGaA (www.freseniusmedicalcare.com).

FINANCIAL CALENDAR

Report on Fiscal Year 2015	February 24, 2016
Report on 1st quarter 2016
Conference call, Live webcast	May 3, 2016
Annual General Meeting, Frankfurt am Main Live webcast of the speech of the Chairman
of the Management Board	May 13, 2016
Report on 1st half 2016 Conference call, Live webcast	August 2, 2016
Report on 1st – 3rd quarter 2016 Conference call, Live webcast	October 27, 2016

Subject to change

FRESENIUS SHARE / ADR

	Ordinary share		ADR
Securities identifi cation no.	578 560	CUSIP	35804M105
Ticker symbol	FRE	Ticker symbol	FSNUY
ISIN	DE0005785604	ISIN	US35804M1053
Bloomberg symbol	FRE GR	Structure	Sponsored Level 1 ADR
Reuters symbol	FREG.de	Ratio	4 ADR = 1 Share
Main trading location	Frankfurt / Xetra	Trading platform	OTCQX

Corporate Headquarters

Else-Kröner-Straße 1 Bad Homburg v. d. H. Germany

Postal address Fresenius SE & Co. KGaA 61346 Bad Homburg v. d. H. Germany

Contact for shareholders

Investor Relations Telephone: ++ 49 61 72 6 08-24 64 Telefax: ++ 49 61 72 6 08-24 88 E-mail: [email protected]

Contact for journalists

Corporate Communications Telefon: ++ 49 61 72 6 08-23 02 Telefax: ++ 49 61 72 6 08-22 94 E-mail: [email protected]

Commercial Register: Bad Homburg v. d. H.; HRB 11852 Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE

Registered Offi ce and Commercial Register: Bad Homburg v. d. H.; HRB 11673 Management Board: Dr. Ulf M. Schneider (President and CEO), Dr. Francesco De Meo, Dr. Jürgen Götz, Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler Chairman of the Supervisory Board: Dr. Gerd Krick

Forward-looking statements:

This Quarterly Financial Report contains forward-looking statements. These statements represent assessments which we have made on the basis of the information available to us at the time. Should the assumptions on which the statements are based on not occur, or if risks should arise – as mentioned in the risk report in the 2014 Annual Report and the SEC fi lings of Fresenius Medical Care AG & Co. KGaA – the actual results could differ materially from the results currently expected.

AI Terminal

Fresenius SE & Co. KGaA

166_10-q_2015-11-03_c90942a6-d194-4bd2-8428-bff919ced63b.pdf

Quarterly Financial Report of Fresenius Group

TABLE OF CONTENTS

3 Fresenius Group fi gures at a glance

6 Management Report

19 Consolidated fi nancial statements

26 Notes

FRESENIUS GROUP FIGURES AT A GLANCE

SALES, EARNINGS, AND CASH FLOW

BALANCE SHEET AND INVESTMENTS

RATIOS

INFORMATION BY BUSINESS SEGMENT

FRESENIUS MEDICAL CARE – Dialysis products, Dialysis services

FRESENIUS KABI – IV drugs, Clinical nutrition, Infusion therapy,

FRESENIUS HELIOS – Hospital operations

FRESENIUS SHARE

FIRST THREE QUARTERS OF 2015

KEY DATA OF THE FRESENIUS SHARE

MANAGEMENT REPORT

CONTINUED STRONG SALES AND NET INCOME GROWTH – FRESENIUS RAISES GROUP EARNINGS GUIDANCE FOR 2015

HEALTH CARE INDUSTRY

RESULTS OF OPERATIONS, FINANCIAL POSITION, ASSETS AND LIABILITIES

SALES

EARNINGS

EARNINGS

SALES BY REGION

SALES BY BUSINESS SEGMENT

RECONCILIATION

INVESTMENTS

RECONCILIATION

CASH FLOW

INVESTMENTS BY BUSINESS SEGMENT

ASSET AND LIABILITY STRUCTURE

THIRD QUARTER OF 2015

CASH FLOW STATEMENT (SUMMARY)

BUSINESS SEGMENTS

FRESENIUS MEDICAL CARE

FIRST THREE QUARTERS OF 2015

THIRD QUARTER OF 2015

FRESENIUS KABI

FIRST THREE QUARTERS OF 2015

THIRD QUARTER OF 2015

FRESENIUS HELIOS

FIRST THREE QUARTERS OF 2015

THIRD QUARTER OF 2015

FRESENIUS VAMED

FIRST THREE QUARTERS OF 2015

THIRD QUARTER OF 2015

EMPLOYEES

EMPLOYEES BY BUSINESS SEGMENT

RESEARCH AND DEVELOPMENT

RESEARCH AND DEVELOPMENT EXPENSES BY BUSINESS SEGMENT

DIALYSIS

INFUSION THERAPIES, CLINICAL NUTRITION, GENERIC IV DRUGS, AND MEDICAL DEVICES

OPPORTUNITIES AND RISK REPORT

SUBSEQUENT EVENTS

RATING

OUTLOOK 2015

FRESENIUS GROUP

FRESENIUS MEDICAL CARE

FRESENIUS KABI 3

FRESENIUS HELIOS 5

FRESENIUS VAMED

INVESTMENTS

EMPLOYEES

RESEARCH AND DEVELOPMENT

GROUP FINANCIAL OUTLOOK 2015

OUTLOOK 2015 BY BUSINESS SEGMENT

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

ASSETS

LIABILITIES AND SHAREHOLDERS' EQUITY

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FRESENIUS SE & CO. KGAA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

CONSOLIDATED SEGMENT REPORTING FIRST THREE QUARTERS (UNAUDITED)

TABLE OF CONTENTS NOTES

FRESENIUS KABI ³

FRESENIUS HELIOS ⁵