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Fresenius SE & Co. KGaA

Investor Presentation Nov 2, 2015

166_ip_2015-11-02_1d0078fd-19c2-4352-8b0b-10fe40684ace.pdf

Investor Presentation

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A Leading Global Health Care Group

Roadshow New York, November 2, 2015

For detailed financial information please see our annual/quarterly reports and/or conference call materials on www.fresenius.com/ir.

Frankfurt stock exchange (DAX30): FRE US ADR program (OTC): FSNUY

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

Strong and Balanced Health Care Portfolio

Dialysis products and services

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

Hospital supplies Hospital operations Hospital projects and services

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Corporate: -5%

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Fresenius Medical Care: Global Market Leader in Dialysis

    • Provide highest standard of care globally to more than 286,000 patients; delivering ~43 million treatments p.a.
    • High quality dialysis products & services
  • -Complete therapy offerings
  • -Vertically integrated
    • Service portfolio expansion in the field of Care Coordination
    • Global clinic acquisitions and expansion into new geographies to support future growth

2014 Sales: US\$15,832 m; EBIT: US\$2,255 m

Fresenius Kabi: A Worldwide Leading Hospital Supplier

    • Comprehensive product portfolio for critically and chronically ill patients:
  • -IV Drugs
  • -Clinical Nutrition
  • -Infusion Therapy
  • -Medical Devices / Transfusion Technology
    • Leading market positions; global market: >€29 bn1
    • Focus on organic growth driven by geographic product rollout and robust pipeline plus selective acquisitions

Addressable market

2014 Sales: €5,146 m; EBIT: €873 m

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

As of September 30, 2015

Fresenius Helios: Leading Private Hospital Operator in Germany

  • Acute and post-acute care in 111 proprietary hospitals1
  • High-quality medical care (e.g. mortality rate for heart failure and pneumonia >30% below German average)
  • Strong track record in hospital operations and acquisitions: targeting 12 − 15% EBIT margin within 6 years per individual clinic location
  • Landmark acquisition of 41 hospitals from Rhön-Klinikum provides excellent long-term growth opportunities

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

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

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

  • Specialized in project development building hospital infrastructure and providing hospital services (technical services and operational management)
  • Track record:
    • 710 health care projects in 77 countries successfully completed

    • Services provided to 510 hospitals and 130,000 beds globally
  • Continuous demand for hospital infrastructure and operating efficiency; key markets Europe, Asia-Pacific, Africa

2014 Sales: €1,042 m; EBIT: €59 m

Fresenius Group: Excellent Financial Performance

Before special items

Fresenius Group: Dividend Development and Total Shareholder Return

Total Return: Fresenius outperforms index

Dec 31, 2004 − Dec 31, 2014

1993-2013 stock split-adjusted; 2013 pre split: €1.25

Source: Bloomberg; dividends reinvested

Fresenius Group: New 2015 Outlook for Fresenius Kabi and Fresenius Vamed

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Fresenius Group: 2015 Earnings guidance increased

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

Outlook Update for 2015 and Beyond

Dividend increase > 20%

2017 net income target (€1.4 to €1.5 bn) will be reached2 years ahead of schedule

New mid-term targets in February 2016

Fresenius Group: Exceeding 2017 Net Income Target at Current FX Rates

~€30 billion Sales; €1.4 to €1.5 billion Net Income

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Page 13 Before special items

Financials Q3/15

Fresenius Group: Financial Results

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Before special items

For a detailed overview of special items please see the reconciliation tables on slides 32 – 33.

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Fresenius Group: Financial Results by Business Segment

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Before special items

For a detailed overview of special items please see the reconciliation tables on slides 32 – 33.

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Q3 Business Segment Update

Continued strong sales and EBIT growth

Regional development

North America

  • IV drug shortages situation largely unchanged from Q2
  • 7 product launches YTD
  • Expected 2015 organic sales growth range 13 15%

Europe

Fully on track to meet FY organic sales growth guidance of 3 – 5%

Emerging Markets

  • Expected 2015 Emerging Market organic sales growth in the mid to high single-digits
  • China: High single-digit organic sales growth expected for FY/2015
  • Latin America: Double-digit organic sales growth expected for FY/2015

Kabi efficiency program

  • €100 m efficiency program fully on track;
  • €50 m booked in Q1-3, remainder of approx. €50 m to be recorded in Q4/2015

Q3 Business Segment Update

Hospital business fully on track

  • Further sequential margin expansion (20 bps) reflects continued successful integration of acquired Rhön hospitals
  • Ongoing favorable reimbursement environment in 2016; DRG inflator set at 2.95%, final price increase will be lower, as it is subject to negotiations at the state level and surplus treatments continue to be reimbursed at a discount

Continued organic sales growth

  • Service business (+9%) drives organic sales growth in Q3
  • Strong order intake of €192 m in Q3
  • New market entry in Bolivia (turnkey project €56 m)

Attachments

Fresenius Group: Profit and Loss Statement

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

For a detailed overview of special items please see the reconciliation tables on slides 32 – 33.

Fresenius Kabi: Strong Organic Sales Growth


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Fresenius Kabi: Strong Organic Sales Growth


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Fresenius Kabi: Strong EBIT Growth

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For a detailed overview of special items please see the reconciliation tables on slides 32 – 33.

Fresenius Helios: Sales Growth


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Fresenius Helios: Strong EBIT margin increase


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For a detailed overview of special items please see the reconciliation tables on slides 32 – 33.

Fresenius Helios: Performance Indicators

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1December 31, 2014

2German average (2013): 7.5

Fresenius Helios: 2014 Clinic Development Plan

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1 includes all hospitals acquired from Rhön Klinikum, €29 m integration costs allocated to individual hospitals.

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Fresenius Vamed: Strong Sales Growth


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Project business only

2December 31, 2014

Fresenius Group: Leverage Ratio

Pro forma acquisitions; before special items

2Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before special items

3Before special items; without major acquisitions

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

Cash Flow Development LTM as of September 30


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1 Before acquisitions and dividends

2 Margin incl. FMC dividend

3 Understated: 5.8% excluding €37 million of capex commitments from acquisitions

Roadshow New York, Fresenius SE & Co. KGaA, Investor Relations © Copyright, November 2, 2015

Margin = in % of sales

Reconciliation according to U.S. GAAP Q3 2015 / Q3 2014

The Group's U.S. GAAP financial 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.

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

Reconciliation according to U.S. GAAP Q1-3 2015 / Q1-3 2014

The Group's U.S. GAAP financial 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.

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

Share Information

Share key facts

Number of shares1 544,999,890 Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de

WKN / ISIN 578560 / DE0005785604

ADR key facts

Ticker symbol FSNUY Depositary bank Deutsche Bank

Ratio 4 ADRs = 1 ordinary share ADR CUSIP / ISIN 35804M105 / US35804M1053 Exchange OTCQX International Premier Structure Sponsored Level I ADR

As of September 30, 2015

Financial Calendar 2016

2
4
0
2
2
0
1
6
R
F
Y
2
0
1
5
t
e
p
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t
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q
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Please note that these dates could be subject to change.

Contact

Investor RelationsFresenius SE & Co. KGaA

h
p
o
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e
:
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For further information and current news: http://www.fresenius.com

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