Fresenius SE & Co. KGaA

Investor Presentation • Nov 3, 2022

Q3/22 – Hitting reset and charting a new course in a challenging market environment

Bad Homburg, 31 October 2022

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, the availability of financing and unforeseen impacts of international conflicts.

Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

1 Business update

• Financial review Q3/22
• Outlook FY/22

• FutureFresenius

Increased uncertainty and volatility exacerbated by macro headwinds dampen outlook

Operational performance also underpinning need for reset

All growth rates in constant currency (cc) Before special items; Net income growth excluding Ivenix and mAbxience acquisitions Net income attributable to shareholders of Fresenius SE & Co. KGaA

Continued sales growth yet contracting margin and declining net income Q3/22 key figures

All growth rates in constant currency (cc) Before special items; Net income growth excluding Ivenix and mAbxience acquisitions Net income attributable to shareholders of Fresenius SE & Co. KGaA

Fresenius Kabi with healthy sales growth and sequential improvement Q3/22 results

QUARTERLY FINANCIALS

MAIN DEVELOPMENTS

• Solid organic sales growth in all three growth vectors against already strong Q3/21
• Biopharmaceuticals continue strong trajectory in line with ambitious plan
• Growth in EU/ROW, outweighing pressures in NAM
• Sequentially constant EBIT margin¹ despite headwinds from cost increases

Before special items,

¹ Q2/22 and Q3/22 margin and EBIT cc growth excluding Ivenix and mAbxience acquisitions

3+1 strategy: Adding to our growth opportunities

7

Ahead of schedule on cost savings

Fresenius Helios delivers solid quarter Q3/22 results

MAIN DEVELOPMENTS

• Strong organic sales growth, solid EBIT in line with seasonality
• Helios Germany: Admissions gradually improving but still below pre-pandemic levels, favorable case mix in Q3/22
• Helios Spain: Healthy activity levels in Spain and Latin America
• Helios Fertility: Lower volumes by delayed treatments; prior year quarter inflated by positive special item

Fresenius Vamed significantly impacted by macro headwinds and COVID Q3/22 results

MAIN DEVELOPMENTS

• Service business showing solid top-line performance, but macro headwinds and a COVID impact in the rehabilitation business impacts profitability
• Inflation and economic uncertainty adversely impact earnings in the project business
• Revaluation of contractual assets in international service as well as in project business weighs on EBIT

1 Business update

Financial review Q3/22

• Outlook FY/22

• FutureFresenius

Tough quarter against the backdrop of challenging macro environment Q3/22 results

Before special items; Net income growth excluding Ivenix and mAbxience acquisitions Net income attributable to shareholders of Fresenius SE & Co. KGaA

Solid Cash Flow development Q3/22 Cash Flow

	Operating Cash Flow Capex (net)				Free Cash Flow1
€m	Q3/2022	LTM Margin	Q3/2022	LTM Margin	Q3/2022	LTM Margin
	658	11.7%	-157	-3.9%	501	7.8%
	301	11.5%	-118	-6.4%	183	5.1%
	353	8.8%	-90	-4.8%	263	4.0%
	-18	3.0%	-10	-2.1%	-28	0.9%
Corporate/Other	-38	n.a.	-5	n.a.	-43	n.a.
Excl. FMC²	598	9.5%	-223	-5.2%	375	4.3%
	1,256	10.3%	-380	-4.6%	876	5.7%

¹ Before acquisitions and dividends

² Including FMC dividends

Well-balanced financing structure Debt and leverage profile

• Continuous commitment to net leverage target ratio of 3.0-3.5x Net Debt/EBITDA
• Leverage ratio impacted by
• − Usual seasonality patterns
• − Acquisitions of Ivenix and majority stake in mAbxience
• − Muted EBITDA development

¹ At actual FX rates for both Net Debt and EBITDA; before special items; pro forma close acquisitions/divestitures

NET DEBT/EBITDA1 LONG-TERM DEBT MATURITY PROFILE

• No major refinancing needs in the short-term
• Conservative fix/floating rate debt mix of ~80%/20%
• Diversified financing mix
• Well-balanced maturity profile

² Calculation on Total Financial Debt excl. Lease & Purchase Money Obligations

• 1 Business update
• Financial review Q3/22

Outlook FY/22

FutureFresenius

Assumptions for Guidance

ASSUMPTIONS FOR GUIDANCE	Continued macroeconomic headwinds from cost inflation, labor shortage and supply chain challenges to remain. The guidance does not consider a significant disruption of gas or electricity supplies in Europe. Overall heightened volatility and muted visibility; potential further consequences, including balance
	sheet valuations will be closely monitored. COVID-19 will continue to impact Fresenius Group operations in 2022. Guidance does not reflect any potential further containment measures that could have a significant and direct impact on the health care sector without any appropriate compensation.
	The acquisitions of Ivenix and of the majority stake in mAbxience as well as any further potential acquisitions remain excluded from guidance.
	Special items are excluded apply1 For FMC's contribution to FSE numbers FMC's guidance assumptions

¹ see FMC Q3/22 presentation

FY/22 Financial Outlook by Business Segment

€m (except otherwise stated)		FY/21 Base	Q1-3/22 Actual	FY/22e	FY/22e New
	Sales growth (org)	7,193	2%	Low single-digit %
	EBIT growth (cc)	1,153	-9%1	Decline in high single- to low double-digit %-range
	Sales growth (org)	10,891	6%	Low-to-mid single-digit %
	EBIT growth (cc)	1,127	5%	Mid single-digit %
	Sales growth (org)	2,297	6%	High single- to low double-digit %	Mid single digit %
	EBIT	101	€29m	Returning to absolute pre COVID levels (2019: €134 m)	Around €100m

Before special items and including estimated COVID-19 effects ¹ Excluding Ivenix and mAbxience acquisitions

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

					FY/22e
		FY/21	Q1-3/22		published	FY/22e
€m (except otherwise stated)		Base	Actual	FY/22e	July 2022	New
	Sales growth (cc)	37,520	4%	Mid single-digit %	Low-to-mid single-digit %
	Net income growth (cc)	1,867	-8%1	Low single digit %	Decline in low-to mid single-digit %- range	Decline of around 10%

Before special items and including estimated COVID-19 effects Net income attributable to shareholders of Fresenius SE & Co. KGaA ¹ Excluding Ivenix and mAbxience acquisitions

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

• 1 Business update
• Financial review Q3/22
• Outlook FY/22

#FutureFresenius

My priorities and plans

Drive structural productivity / cost out Competing in a challenging economic and geopolitical environment

Build out a comprehensive agenda to create value for shareholders

Strengthen return focus

Feeling enormous passion and strongest possible commitment for patients

Create momentum for #FutureFresenius

Pathway to #FutureFresenius: Rigorous strategy and portfolio review underway

#FutureFRESENIUS

Attachments

Fresenius Kabi: Q3 & Q1-3/22 Organic Sales Growth by Regions

€m	Q3/22	Δ YoY organic	Q1-3/22	Δ YoY organic
North America	668	-2%	1,853	-1%
Europe	669	6%	1,967	4%
Emerging Markets	734	6%	1,994	2%
Total sales	2,071	3%	5,814	2%

Fresenius Kabi: Q3 & Q1-3/22 Organic Sales Growth by Product Segment

Total sales	2,071	3%	5,814	2%
Biopharmaceuticals	64	147%	116	127%
Medical Devices/ Transfusion Technology	383	3%	1,100	1%
Clinical Nutrition	619	4%	1,736	4%
Infusion Therapy	260	15%	735	13%
IV Drugs	745	-4%	2,127	-5%
€m	Q3/22	Δ YoY organic	Q1-3/22	Δ YoY organic

Fresenius Kabi: Q3 & Q1-3/22 EBIT Growth

€m	Q3/22	Δ YoY cc	Q1-3/22	Δ YoY cc
North America	186	-3%	516	-8%
Margin	27.8%	-20 bps	27.8%	-220 bps
Europe	65	-32%	226	-28%
Margin	9.7%	-530 bps	11.5%	-500 bps
Emerging Markets	180	-1%	493	1%
Margin	24.5%	-110 bps	24.7%	+20 bps
Corporate and Corporate R&D	-151	-13%	-391	4%
Total EBIT	280	-11%1	844	-9%1
Margin	13.5%	-270 bps	14.5%	-180 bps

All figures before special items Margin growth at actual rates ¹ Excluding Ivenix and mAbxience acquisitions

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Q3 & Q1-3/22 Key Financials

€m	Q3/22	Δ YoY cc	Q1-3/22	Δ YoY cc
Total sales	2,829	6%1	8,685	6%1
Thereof Helios Germany	1,731	5%1	5,272	5%1
Thereof Helios Spain	1,037	8%1	3,227	9%1
Thereof Helios Fertility	62	--	184	--
Total EBIT Margin	222 7.8%	-1% -70 bps	831 9.6%	5% -20 bps
Thereof Helios Germany Margin	141 8.1%	1% -40 bps	449 8.5%	2% -40 bps
Thereof Helios Spain Margin	83 8.0%	3% -40 bps	384 11.9%	9% -10 bps
Thereof Helios Fertility Margin	4 6.5%	-67% -1,600 bps	15 8.2%	0% -890 bps
Thereof Corporate	-6	--	-17	--

¹ Organic growth

All figures before special items

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Key Metrics

	Q1-3/22	FY/21	Δ
Helios Germany
Hospitals - Acute care hospitals	87 84	90 87	-3% -3%
Beds - Acute care hospitals	30,487 29,921	30,487 29,955	0% 0%
Admissions (acute care)	814,260	1,048,946
Helios Spain
Hospitals	58	56	4%
Beds	8,224	8,174	1%
Admissions (including outpatients)	13,859,390	17,122,592

Fresenius Vamed: Q3 & Q1-3/22 Key Financials

€m	Q3/22	Δ YoY cc	Q1-3/22	Δ YoY cc
Total sales Thereof organic sales	572	10% 10%	1,647	6% 6%
Project business	154	45%	407	6%
Service business	418	1%	1,240	5%
Total EBIT	10	-61%	29	-20%
Order intake1	153	--	669	--
Order backlog1			3,726	7%2

¹ Project business only ² Versus December 31, 2021

Fresenius Group: Calculation of Noncontrolling Interests

€m	Q1-3/22	Q1-3/21
Earnings before tax and noncontrolling interests	2,576	2,702
Taxes	-606	-605
Noncontrolling interests, thereof	-686	-751
Fresenius Medical Care net income not attributable to Fresenius (Q1-3/22: ~68%)	-447	-512
Noncontrolling interest holders in Fresenius Medical Care	166	-174
Noncontrolling interest holders in Fresenius Kabi (-€ 52 m), Fresenius Helios (-€14 m), Fresenius Vamed (-€ 3 m) and due to Fresenius Vamed's 23% external ownership (-€4 m)	-73	-65
Net income attributable to Fresenius SE & Co. KGaA	1,284	1,346

Before special items

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Cash Flow

€m	Q3/22	LTM Margin	Δ YoY
Operating Cash Flow	1,256	10.3%	2%
Capex (net)	-380	-4.6%	12%
Free Cash Flow	876	5.7%	10%
(before acquisitions and dividends)
Acquisitions (net)	-428
Dividends	-60
Free Cash Flow (after acquisitions and dividends)	388	1.1%	-35%

Estimated COVID-19 Effects Q3 & Q1-3/22

	Growth cc as reported incl. COVID-19		Estimated COVID-19 impact	cc	Estimated growth cc excl. COVID-19
	Q3/22	Q3/21	Q3/22	Q3/21	Q3/22	Q3/21
Sales	5%	5%	1% to 0%	-2% to -3%	4% to 5%	7% to 8%
Net income1	-22%	2%	4% to 0%	-10% to -14%	-26% to -22%	12% to 16%

	Growth cc as reported incl. COVID-19		Estimated COVID-19 impact	cc	Estimated growth cc excl. COVID-19
	Q1-3/22	Q1-3/21	Q1-3/22	Q1-3/21	Q1-3/22	Q1-3/21
Sales	4%	5%	1% to 0%	0% to -1%	3% to 4%	5% to 6%
Net income1	-10%	6%	5% to 1%	-1% to -5%	-15% to -11%	7% to 11%

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

Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q3/22

€m	Q3/22	Q3/21	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others
Fresenius Medical Care	5,096	4,442	15%	12%	3%	2%	1%	0%
Fresenius Kabi	2,071	1,854	12%	8%	4%	3%	1%	0%
Fresenius Helios	2,829	2,622	8%	1%	7%	6%	2%	-1%
Fresenius Vamed	572	516	11%	1%	10%	10%	1%	-1%
Total	10,459	9,324	12%	7%	5%	4%	1%	0%

Sales by Business Segment – FX, Acquisitions/Divestitures Effects Q1-3/22

Total	30,197	27,554	10%	6%	4%	3%	1%	0%
Fresenius Vamed	1,647	1,549	6%	0%	6%	6%	1%	-1%
Fresenius Helios	8,685	8,009	8%	0%	8%	6%	2%	0%
Fresenius Kabi	5,814	5,370	8%	6%	2%	2%	0%	0%
Fresenius Medical Care	14,401	12,972	11%	9%	2%	1%	1%	0%
€m	Q1-3/22	Q1-3/21	Growth at actual rates	Currency translation effects	Growth at constant rates	Organic growth	Acquisi tions	Divesti tures/ Others

Financial Calendar / Contact

Financial Calendar		Social Media
22 February 2023	Results FY/22	Follow Fresenius Investor Relations & Sustainability on
09 May 2023	Results Q1/23	LinkedIn:
17 May 2023	Annual General Meeting
02 August 2023	Results Q2/23
02 November 2023	Results Q3/23

Please note that these dates could be subject to change.

Follow Fresenius Investor Relations & Sustainability on

Contact

Investor Relations & Sustainability Fresenius SE & Co. KGaA phone: +49 6172 608-2485 e-mail: ir-fre@fresenius.com

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