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Fresenius SE & Co. KGaA

Investor Presentation Oct 31, 2012

166_ip_2012-10-31_19a8cdb6-0a0c-4c80-91c4-842abfe848cd.pdf

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Analyst Conference Call – Q1-3/12 Results

October 31, 2012

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.

Fresenius Group: Financial Results

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1Previous year's sales were adjusted according to a U.S. GAAP accounting change at Fresenius Medical Care.

2Adjusted for one-time costs of €7 million (non-financing expenses) related to the offer to the shareholders of RHÖN-KLINIKUM AG.

3 Net income attributable to shareholders of Fresenius SE & Co. KGaA ‒ adjusted for a non-taxable investment gain of €34 million at Fresenius Medical Care and for one-time costs of €31 million related to the offer to the shareholders of RHÖN-KLINIKUM AG. 2011 before special items due to MEB and CVR accounting.

Fresenius Group: Financial Results by Business Segment

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1Previous year's sales were adjusted according to a U.S. GAAP accounting change at Fresenius Medical Care

Fresenius Kabi: Update Q1-3/12

  • 9% organic sales growth excellent contribution from all regions
  • Strong organic sales growth in Emerging Markets (e.g. China: +17%, South Korea +22%)
  • U.S. I.V. drug shortage update Shortage list mid-October: 84 I.V. drugs; 24 marketed by Kabi (July: 94 I.V. drugs; 31 marketed by Kabi)
  • 9 product launches YTD in the U.S.
  • Fenwal closing expected in Q4

Fresenius Helios: Update Q1-3/12

    • Organic sales growth slightly above 2012 target range of 3-5%
    • Stable EBIT margin of 9.9% (PY: 10.0%) including major recent acquisitions
    • EBIT increase to 11.6% (+140bps) in established clinics
    • 2013 DRG-Inflator of 2.0% (2012: 1.48%) – highest increase since the introduction of the DRG system in 2003
    • Hospital transaction market update:
  • Acquired hospital revenue 2012 YTD: >€500 m significantly exceeding FY/11 (~€365 m) and FY/10 (~€230 m)
  • Projects >€100 m in revenue pending

Fresenius Vamed: Update Q1-3/12

  • Improved 2012 outlook Sales and EBIT now expected at upper end of 5-10% range
  • Excellent Q3 order intake of €166 m exceeding order intake in the first half of €156 m
  • H.C. Hospital Consulting in Italy performing above expectations – gaining market share in maintenance / technical management of medical equipment
  • Switzerland new hospital service subsidiary and acquisition of HELIOS post-acute care clinic

Group Financials Q1-3/12 − Outlook 2012

Fresenius Group: Profit and Loss Statement


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1Previous year's sales were adjusted according to a U.S. GAAP accounting change at Fresenius Medical Care.

2Adjusted for one-time costs of €7 million related to the offer to the shareholders of RHÖN-KLINIKUM AG.

3 Net income attributable to shareholders of Fresenius SE & Co. KGaA ‒ adjusted for a non-taxable investment gain of €34 million at Fresenius Medical Care and for one-time costs of €31 million related to the offer to the shareholders of RHÖN-KLINIKUM AG. 2011 before special items due to MEB and CVR accounting.

Fresenius Kabi: Excellent EBIT Improvement


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Fresenius Helios: Ongoing Strong Sales and EBIT Growth


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2012 adjusted for the transfer of a post-acute care clinic from Fresenius Helios to Fresenius Vamed

Analyst Conference Call – Q1-3/2012 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, October 31, 2012

Fresenius Vamed: Sales Growth and EBIT in line with Expectations


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2Dec 31, 2011

2012 adjusted for the transfer of a post-acute care clinic from Fresenius Helios to Fresenius Vamed

Analyst Conference Call – Q1-3/2012 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, October 31, 2012

Cash Flow Development


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1Before Acquisitions and Dividends

2Incl. FMC dividend

3Understated: 3.6% excluding €26 million of capex commitments from acquisitions Margin = in % of sales

Fresenius Group: Financial Outlook by Business Segment

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Fresenius Group: Financial Outlook Fully Confirmed

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2 Net income attributable to shareholders of Fresenius SE & Co. KGaA – adjusted for a non-taxable investment gain (€34 million) and potential special charges (up to €17 million) at Fresenius Medical Care as well as for one-time costs (€31 million) related to the offer to the shareholders of RHÖN-KLINIKUM AG.

Analyst Conference Call – Q1-3/2012 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, October 31, 2012

Attachments

Fresenius Group:

Overview – Calculation of Noncontrolling Interest


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Fresenius Group: Cash Flow


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1Previous year's sales were adjusted according to a U.S. GAAP accounting change at Fresenius Medical Care

Cash Flow Development LTM


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Fresenius Group: Debt and Interest Ratios

1Pro forma Liberty Dialysis Holdings, Inc. and Damp Group

2Before one-time costs related to the offer to the shareholders of RHÖN-KLINIKUM AG

Debt excludes Mandatory Exchangeable Bonds which came to maturity on August 14, 2011

Fresenius Kabi: Strong Organic Sales Growth


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Fresenius Helios: Strong Organic Sales Growth


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Fresenius Helios: Performance Indicators

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1 Dec 31, 2011

Fresenius Helios: Sales Influence Hospital Acquisitions / Divestitures

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Fresenius Group: Key Figures According to IFRS


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1Excluding one-time costs related to the offer to the shareholders of RHÖN-KLINIKUM AG

2Net income attributable to shareholders of Fresenius SE & Co. KGaA

3 Net income attributable to shareholders of Fresenius SE & Co. KGaA ‒ adjusted for a non-taxable investment gain at Fresenius Medical Care and for one-time costs related to the offer to the shareholders of RHÖN-KLINIKUM AG

Special Items – Investment Gain 2012

Investment gain at Fresenius Medical Care:

  • Due to the acquisition of Liberty Dialysis Holdings, Inc. (Liberty), including its 51% stake in Renal Advantage Partners, LLC (RAI)
  • Measuring the 49% equity interest in RAI held by Fresenius Medical Care at its fair value at the time of the Liberty acquisition
  • Resulting in a non-taxable investment gain of US\$140 million at Fresenius Medical Care or €34 million at Fresenius SE & Co. KGaA in Q1-3/12 respectively
  • Subject to finalization of the Liberty purchase accounting

Special Items – Other Financial Result 2011/2012

  • Other financial result 2012:
  • The other financial result of -€37 million includes one-time costs for the offer to the shareholders of RHÖN-KLINIKUM AG, primarily relating to financing commitments.
  • Other financial result 2011:
  • CVR (Contingent Value Right): The trading price of the CVR was considered as fair redemption value. Changes of this value were recognized in the P&L.

On March 4, 2011, the CVRs have been delisted from the NASDAQ and the NASDAQ suspended trading in the CVRs effective the close of trading on that day.

Calculation since March 4, 2011: between trading price of US\$0.04 at December 31, 2010 and value zero multiplied by 163.3 million CVRs = US\$6.7 million = €4.9 million.

MEB (Mandatory Exchangeable Bond): Mark-to-market accounting based on the Black-Scholes valuation model reflecting FMC's share price. Any change in fair value is recognized in the P&L. Valuation changes led to gains or expenses until maturity. Maturity date was August 14, 2011.

Restatement of 2011 Figures

The restatement is a result of

  • the U.S. GAAP accounting change in the presentation of U.S. dialysis service sales which will be shown net of the provision for bad debt and
  • a reclassification of freight expenses at Fresenius Medical Care
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Share Information

Share key facts

Number of shares1 177,944,610 Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de

WKN / ISIN 578560 / DE0005785604

ADR key facts

Ticker symbol FSNUY Exchange OTC-market Depositary bank Deutsche Bank

Ratio 8 ADRs = 1 ordinary share ADR CUSIP / ISIN 35804M105 / US35804M1053 Structure Sponsored Level I ADR

1as of September 30, 2012

Financial Calendar

  • 26.02.2013 Report on Fiscal Year 2012
  • 30.04.2013 Report on 1st quarter 2013
  • 17.05.2013 Annual General Meeting, Frankfurt/Main
  • 30.07.2013 Report on 1st half 2013
  • 05.11.2013 Report on 1st 3rd quarter 2013

Contact

  • Birgit Grund SVP Investor Relations Fresenius SE & Co. KGaA
  • Telephone: +49 6172 608-2485 e-mail: [email protected]

For further information and current news: http://www.fresenius.com

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