Fresenius Medical Care AG & Co. KGaA

Earnings Release • Oct 26, 2016

Third quarter / 9m 2016

Conference call | October 27, 2016

Safe harbor statement: This presentation includes certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Act of 1934, as amended. The Company has based these forward-looking statements on its views with respect to future events an financial performance. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties, including changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. These and other risks and uncertainties are discussed in detail in Fresenius Medical Care AG & Co. KGaA's (FMC AG & Co. KGaA) reports filed with the Securities and Exchange Commission (SEC) and the German Exchange Commission (Deutsche Börse).

Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and the company does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable law and regulations.

If not mentioned differently the term net income after minorities refers to the net income attributable to the shareholders of Fresenius Medical Care AG Co. KGaA independent of being the reported or the adjusted number. The term EMEA refers to the region Europe, Middle East and Africa. Amounts are in US-\$ if not mentioned otherwise.

AGENDA – Q3/9m 2016

Strong performance to deliver on fiscal year

• Strong revenue growth driven by very positive results in Health Care services
• Segments Asia-Pacific and Latin America with very strong increase in revenue and operating results
• Care Coordination again with significant top-line growth and sequentially improved profitability
• On track to achieve full-year guidance

Q3 2016 highlights Q3 2016 performance reported (US\$ million)

Q3 - accelerated growth in all segments

North America	US\$ million		EMEA	US\$ million
Revenue	3,300	+10%	Revenue	675	+2%
Organic growth		+7%	Organic growth		+2%
Asia-Pacific	US\$ million		Latin America	US\$ million
Revenue	427	+13%	Revenue	192	+9%
Organic growth		+8%	Organic growth		+28%
9% Asia-Pacific	4% Latin America 15% EMEA		4,598\$m +9% yoy	72% North America

Quality outcomes remain stable

	North America		EMEA		Latin America1		Asia-Pacific1
% of patients	Q3 2016	Q2 2016	Q3 2016	Q2 2016	Q3 2016	Q2 2016	Q3 2016	Q2 2016
Kt/V ≥ 1.2	97	98	96	96	93	92	97	97
No catheter (>90 days)	86	84	81	81	81	82	91	91
Hemoglobin = 10 – 12 g/dl	73	73	77	77	52	52	59	58
Hemoglobin = 10 – 13 g/dl (International)	79	78	77	77	67	69	67	66
Albumin ≥ 3.5 g/dl	77	81	91	90	88	90	88	87
Phosphate ≤ 5.5 mg/dl	64	63	76	76	76	77	72	71
Calcium 8.4 – 10.2 mg/dl	84	83	75	73	75	74	75	75
Hospitalization days, per patient	9.8	10.0	9.4	9.4	3.7	3.6	4.3	4.0

¹ Outcome data in these regions might be more volatile over time as clinic data will be added.

Health Care services with strong revenue growth

	Q3 2016 US\$ million	Q3 2015 US\$ million	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
Total health care	3,734	3,402	10	10	8	3.0
North America	3,068	2,794	10	10	7	1 3.3
of which Care Coordination	618	480	29	29	24	n.a.
EMEA	335	309	8	10	3	3.8
Asia-Pacific	192	168	15	3	4	4.3
Latin-America	139	131	6	31	32	2.0

• 5% increase in dialysis treatments and number of patients
• Care Coordination with ongoing significant organic growth

cc = constant currency

Dialysis products with robust growth

	Q3 2016 US\$ million	Q3 2015 US\$ million	Growth in %	Growth in %cc
Total dialysis products	864	829	4	5
North America	232	219	7	7
EMEA	340	350	(3)	(1)
Asia-Pacific	235	210	11	12
Latin America	53	45	19	18
Corporate	4	5	(43)	(43)

• Increased sales in line with total 73% patient growth (machines, dialyzers, acute care)
• Strong results in North America and Asia-Pacific segment
• Foreign currency impact neutral on group level

cc = constant currency

AGENDA – Q3/9m 2016

Financials & outlook – Mike Brosnan, CFO

Q&A session 3

2

1

EBIT increase in line with revenue growth

	Q3 2016 US\$ million	Q3 2015 US\$ million	Growth in %	9m 2016 US\$ million	9m 2015 US\$ million	Growth in %
Net revenue	4,598	4,231	9	13,224	12,390	7
Operating income (EBIT)	670	614	9	1,851	1,665	11
EBIT-margin in %	14.6	14.5	10bp	14.0	13.4	60bp
Net interest expense	100	100	1	308	304	1
Income before taxes	570	514	11	1,543	1,361	13
Income tax expense	164	168	(2)	471	441	7
Tax rate in %	28.8	32.8	(400bp)	30.5	32.4	(190bp)
Non-controlling interest	73	84	(13)	217	207	5
Net income	333	262	27	855	713	20

Revenue for the first nine months increased by 8% at constant currency, in line with full-year guidance

Net income growth of +17% in Q3, excluding special items

* for details see attachment 3, page 18

Cash flow development and credit profile

	Q3 2016	Q3 2015	9m 2016	9m 2015
	US\$ million	US\$ million	US\$ million	US\$ million
Operating cash flow	439	579	1,296	1,412
in % of revenue	9.5	13.7	9.8	11.4
Capital expenditures, net	(236)	(224)	(734)	(636)
Free cash flow	203	355	562	776
Free cash flow, after acquisitions and investments	166	298	368	652

Total debt/EBITDA-ratio

Current ratings

	S&P	Moody's	Fitch
Company	BBB-	Ba1	BBB
Outlook	stable	stable	stable

A reconciliation to the most directly comparable U.S. GAAP financial measures is provided in the attachments.

Outlook confirmed
	2016 Outlook
Revenue growth	+7 to 10% cc
Net income growth	+15 to 20%
Assumptions:
2016 net income growth outlook is based on current exchange rates 
Savings from the Global Efficiency Program are included 
Acquisitions 2015/2016 are not included 

Net income growth based on US\$ 1,057 million in 2015

cc = constant currency

AGENDA – Q3/9m 2016

Attachment 1

Reconciliation of non-US-GAAP financial measures to the most comparable US-GAAP measure

US\$ million

Debt	FY 2014 1)	FY 2015	9m 2016
Short term debt	133	109	721
+ Short term debt from related parties	5	19	99
+ Current portion of long-term debt and capital lease obligations	314	664	891
+ Long-term debt and capital lease obligations less current portion	9,014	7,854	7,174
TOTAL debt	9,466	8,646	8,885
EBITDA	FY 2014 2)	FY 2015 2)	2) 9m 2016
Last twelve month operating income (EBIT)	2,347	2,327	2,519
+ Last twelve month depreciation and amortization	716	717	755
+ Non-cash charges	57	83	101
EBITDA (annualized)	3,120	3,127	3,375
Total Debt 1) / EBITDA	3.0	2.8	2.6

1) Reclassification of debt issuance costs from current / non-current assets to long-term liabilities

2) EBITDA: including largest acquisitions

Attachment 2

Reconciliation of non-US-GAAP financial measures to the most comparable US-GAAP measure

US\$ million

Cash flow	Q3 2015	Q3 2016	9m 2015	9m 2016
Acquisitions, investments and net purchases of intangible assets	(65)	(83)	(166)	(387)
+ Proceeds from divestitures	8	46	42	193
= Acquisitions and investments, net of divestitures	(57)	(37)	(124)	(194)

Capital expenditures, net	Q3 2015	Q3 2016	9m 2015	9m 2016
Purchase of property, plant and equipment	(230)	(242)	(647)	(748)
- Proceeds from sale of property, plant & equipment	6	6	11	14
= Capital expenditure, net	(224)	(236)	(636)	(734)

Attachment 3

Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measures: impact of divestment of dialysis business in Venezuela and sale of the European marketing rights for certain renal pharmaceuticals to our joint venture Vifor Fresenius Medical Care Renal Pharma in 2015.

US\$ million

	Q3 2015	Q3 2016	9M 2015	9M 2016
Operating income (EBIT)	614	670	1,665	1,851
Special items	18	-	18	-
Divestment of dialysis service business in Venezuela	26	-	26	-
Sale of European marketing rights to JV	(8)	-	(8)	-
Operating income (EBIT) excluding special items	632	670	1,683	1,851

	Q3 2015	Q3 2016	9M 2015	9M 2016
Net income	262	333	713	855
Special items	22	-	22	-
Divestment of dialysis service business in Venezuela	27	-	27	-
Sale of European marketing rights to JV	(5)	-	(5)	-
Net income excluding special items	284	333	735	855

9m 2016 - Health Care services & product revenue

	9M 2016 US\$ million	9M 2015 US\$ million	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
Total health care services	10,720	9,929	8	9	7	3.3
North America	8,838	8,087	9	9	7	1 3.7
of which Care Coordination	1,704	1,382	23	23	19	-
EMEA	967	919	5	9	3	3.7
Asia-Pacific	538	496	9	3	4	4.9
Latin-America	377	427	(12)	16	22	1.9
		9M 2016 US\$ million	9M 2015 US\$ million		Growth in %	Growth in %cc
Total dialysis products		2,504		2,461	2	4
North America		674		643	5	5
EMEA		1,015		1,037	(2)	-
Asia-Pacific		660		611	8	12
Latin America		143		149	(4)	7
Corporate		12		21	(47)	(47)

¹ U.S. (excl. Mexico)

cc = constant currency

*excl. Corporate // ** for details see attachment 3, page 18

The DSO increase is largely due to ordinary business fluctuations.

9m 2016 - patients, treatments, clinics

	Patients as of Sept. 30, 2016	Treatments 9m 2016, in million	Clinics as of Sept. 30, 2016
North America	187,611	21.6	2,277
Growth in %	4	5	3
EMEA	59,233	6.6	701
Asia-Pacific	29,358	3.0	369
Latin America	30,164	3.6	232
Total	306,366	34.7	3,579
Growth in %	5	4	5

	Exchange rates
		Q3 2015	9m 2015	Q3 2016	9m 2016
€:\$	Period end	1.120	1.120	1.116	1.116
	Average	1.112	1.114	1.117	1.116
\$:CNY	Period end	6.356	6.356	6.672	6.672
	Average	6.304	6.249	6.666	6.582
\$:RUB	Period end	65.377	65.377	63.179	63.179
	Average	63.242	59.761	64.583	68.252
\$:ARS	Period end	9.450	9.450	15.297	15.297
	Average	9.246	8.968	14.940	14.536

	Q1	Q2	Q3	Q4	Full year
2014	76	78	79	80	313
2015	76	78	79	79	312
2016	78	78	79	79	314
2017	77	78	79	78	312

Constant currency: Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure "at constant exchange rates" in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, revenues received in local (non-U.S. dollar) currency are translated into U.S. dollars at the average exchange rate for the period presented. When we use the term "constant currency," it means that we have translated local currency revenues for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenues into U.S. dollars that we used to translate local currency revenues for the comparable reporting period of the prior year. We then calculate the change, as a percentage, of the current period revenues using the prior period exchange rates versus the prior period revenues. This resulting percentage is a non-GAAP measure referring to a change as a percentage "at constant exchange rates."

We believe that revenue growth is a key indication of how a company is progressing from period to period and that the non-GAAP financial measure constant currency is useful to investors, lenders, and other creditors because such information enables them to gauge the impact of currency fluctuations on its revenue from period to period. However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-U.S. GAAP revenue on the one hand and changes in revenue prepared in accordance with U.S. GAAP on the other. We caution the readers of this report to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue prepared in accordance with U.S. GAAP. We present the fluctuation derived from U.S. GAAP revenue next to the fluctuation derived from non-GAAP revenue. Because the reconciliation is inherent in the disclosure, we believe that a separate reconciliation would not provide any additional benefit.

Financial calendar *

Feb 22, 2017 Report on 4th quarter 2016

• Nov 7-8, 2016 Credit Suisse Healthcare Conference, Scottsdale
• Nov 17, 2016 HSBC Healthcare Day, Frankfurt
• Nov 30, 2016 UBS Nordic Investor Days, Stockholm
• Dec 1, 2016 Société Générale Premium Review Conference, Paris
• Dec 1, 2016 dbAccess Pharma & Healthcare Corporate Day, London
• Dec 7, 2016 Berenberg European Conference Pennyhill Park, Surrey
• Dec 7, 2016 Citi Global Healthcare Conference, New York

* Please note that dates and/or participation might be subject to change

Contacts

FME Investor Relations Else-Kröner-Str. 1 61352 Bad Homburg v.d.H. Germany

Ticker: FME or FMS (NYSE) WKN: 578 580 ISIN: DE00057858002

Oliver Maier

Head of Investor Relations and Corporate Communications Tel: +49–(0) 6172–609–2601 Email: oliver.maier@fmc-ag.com

Robert Adolph

Director Investor Relations Tel.: +49–(0) 6172–609–2477 Email: robert.adolph@fmc-ag.com

Juliane Beckmann

Senior Manager Investor Relations Tel.: +49–(0) 6172–609–5216 Email: juliane.beckmann@fmc-ag.com

Terry Morris

VP Investor Relations North America Tel: +1– 800–948–2538 Email: terry.morris@fmc-na.com

Third quarter / 9m 2016

Conference call | October 27, 2016