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Fresenius Medical Care AG & Co. KGaA

Investor Presentation Aug 5, 2009

165_ip_2009-08-05_047bfb4a-aa3c-4c45-8b6e-be122286ed35.pdf

Investor Presentation

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Fresenius Medical Care

The World's Leading Renal Therapy Company

Second Quarter / First Half 2009 Results

Conference Call, August 4, 2009

Forward Looking Statements

Safe Harbor Statement: This presentation includes certain forward-lookin g 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. 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. These and other risks and uncertainties are discussed in detailed in the Company's reports filed with the Securities and Exchange Commission (SEC) and the German Exchange Commission (Deutsche Börse).

1. Business Update

2. Financials and Outlook

3. Questions & Answers

Second Quarter 2009 - Highlights

Strong organic growth of 8% and on target for Full Year 2009

Dialysis Services:

  • Continued improvement in mortality and further reduction in hospitalization
  • New Therapies patient growth y-o-y
    • USA Clinic Nocturnal +32%
    • Europe Online Hemodiafiltration +52%
  • Integrated Care (Accountable Care) model expanded

Dialysis Products:

  • Production at highest quality levels
  • Renal Pharma revenue of ~ USD 300 m expected for 2009

Second Quarter 2009 – Overview

Solid quarter and on track for the year

Q
2
2
0
0
8
Q
2
2
0
0
9
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+
  • •Total revenue growth of +9%cc and organic growth of +8%
  • •EBIT affected mainly by higher personnel- and pharma costs and product mix
  • • Net income growth of +5% and on track for full year guidance g yg

cc = constant currency

Half Year 2009 – Overview

Strong performance with significant currency headwinds

H
1
2
0
0
8
H
1
2
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0
9
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+

•Also for the Half Year 2009 a total revenue growth of +9%cc and organic growth of +8%

cc = constant currency

Second Quarter 2009 – Revenue

Second Quarter 2009 - Dialysis Services Global

Very Strong revenue growth in North America

\$
U
S
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i
l
l
i
n
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%
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%

Treating more than 190,000 patients in ~ 2,470 clinics

cc = constant currency

Second Quarter 2009 - Dialysis Services Global

Excellent Performance in all Key Metrics

Q
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1) including Mexico

cc = constant currency

Second Quarter 2009 – Revenue per treatment US

Further improved revenue per treatment

Second Quarter 2009 - Quality Outcomes

Overall Strong Quality Performance

N
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*
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*
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1
6
7
8
0

The hospitalization rates for the US reflects FMS adoption of CMS policy. Reduction of hospitalization days account for approx. \$60 million in savings and therefore benefits payors and patients *

Second Quarter 2009 - Dialysis Products

Strong External Product Growth of 7%cc

\$
U
S
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%
6

cc = constant currency

Healthcare Reform Initiatives – In the News 2009

  • •No clear set of provisions in Congress yet
  • • Proposed cost is shrinking easier to pay for with less risk to dialysis patients risk
  • •Terms of the evolving public plan seem to be manageable for providers
  • •Provider reforms including Accountable Care Organizations (ACOs) have broad consensus

Bundling - 2011

  • • Proposed rule on bundling 2011 from the Center for Medicare and Medicaid Services expected soon for public review and comment
  • •Review and comment process will take months; no final rule likely until 2010
  • •Proposed rule likely to be based on 2007 actual and 2008 estimated reimbursements
  • • Components to look for: risk adjusters; outlier payments; and quality incentives
  • Must be analyzed to determine actuarially validity

Second Quarter 2009 - Summary

Strong organic growth of 8% and on target for Full Year 2009

Further improvement in quality performance metrics in both products and services

Continued acceptance and expansion of new products and therapies worldwide

Expect margin improvement in the second half of 2009

R&D investments expected to continue at current level

Agenda

1. Business Update

2. Financials and Outlook

3. Questions & Answers

Second Quarter 2009 - Profit & Loss

\$
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* 9% growth at constant currency, 8% organic growth

Half Year 2009 - Profit & Loss

\$
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* 9% growth at constant currency, 8% organic growth

Second Quarter 2009 – EBIT

Major impacts on operating results versus Q2 2008:

    • I d il ncrease d commercial payor rates + Normalized pharma utilization rate
  • +Cost efficiencies in the Dialysis Product Business and Manufacturing
  • Hi gher Personnel and other Service business costs
  • Significantly higher pharma costs mainly Heparin
  • Product mix as there is a revenue shift from PhosLo to IV Iron
  • Higher corporate expenses

Operating Margin Development

Days Sales Outstanding (DSO)

Stable despite difficult environment

Second Quarter 2009 – Cash Flow

Operating Cash Flow back at 10% of Revenues

\$
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1) A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment.

Half Year 2009 – Cash Flow

Very strong Cash Flow performance

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1) A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment.

Q2 2009 - Debt / EBITDA Development

Slightly up based on Dividend Payment

ltm = last twelve months

* including non-cash charges and in 2006/2007 excluding restructuring costs, in-process R&D and gain from the sale of dialysis clinics. A reconciliation to the most directly comparable US-GAAP financial measure is provided in the attachment.

Fiscal Year 2009 – Outlook Confirmed

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Agenda

1. Business Update

2. Financials and Outlook

3. Questions & Answers

Thank You

for your interest in

Fresenius Medical Care !

Fresenius Medical Care

The World's Leading Renal Therapy Company

Second Quarter / First Half 2009 Results

Conference Call, August 4, 2009

Attachment I

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

All numbers are in \$ millions

D
b
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e
Q
2
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0
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9
5
7
4,
0
0
4
3,
8
2
9
7
0
7
f
fer
Se
S
(
(
f c
f
)
)
Tr
t
Pr
d
i
t
ies
t o
t p
t
ion
+
us
e
re
cu
r
ne
urr
en
or
6
4
8
6
4
1
6
6
4
1,
2
5
4
1,
1
8
8
To
ta
l
de
b
t
=
5,
9
6
8
5,
7
3
8
5,
6
4
2
5,
5
7
9
2,
1
9
1
E
B
I
T
D
A
Q
2
2
0
0
9
Q
2
2
0
0
8
F
Y
2
0
0
8
2)
F
Y
2
0
0
7
F
Y
2
0
0
6
(pr
o
for
)
ma
F
Y
2
0
0
5
(
)
La
lve
hs
ing
inc
E
B
I
T
t
tw
t
t
s
e
m
on
o
p
er
a
om
e
1,
6
6
8
1,
6
4
2
1,
6
7
2
1,
5
8
0
1,
3
6
7
9
3
9
La
t
tw
lve
t
hs
de
ia
t
ion
d a
t
iza
t
ion
+
s
e
mo
n
p
rec
an
mo
r
4
3
3
3
9
2
4
1
6
3
6
3
3
2
6
2
1
5
No
h c
ha
+
n-c
as
rg
es
4
6
4
2
4
4
4
1
3
5
1
4
E
B
I
T
D
A
(
l
ize
d
)
an
nu
a
=
2,
1
4
7
2,
0
7
6
2,
1
3
2
1,
9
8
4
1,
7
2
8
1,
2
0
4

1) A/R securitization program off-balance sheet in 2003 and included in short term borrowings from 2004 onwards

2) Excluding restructuring costs and in-process R&D

Attachment II

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

E
l
R
t
e
r
n
a
e
e
n
e
x
v
u
Q
2
2
0
0
9
Q
2
2
0
0
8
h
t
g
ro
w
cc
In
io
l
du
te
t
t r
rn
a
na
p
ro
c
ev
en
ue
5
8
1
6
3
8
9
%
-
7
%
+
In
te
l re
rn
a
ve
nu
e
-
(
7
0
)
(
7
9
)
Ex
l r
te
rn
a
ev
en
ue
=
5
1
1
5
5
9
9
%
-
6
%
+
ica
No
t
h
Am
du
t r
r
er
p
ro
c
ev
en
ue
3
6
0
3
1
5
%
1
4
+
In
te
l re
rn
a
ve
nu
e
-
(
1
6
1
)
(
1
3
3
)
Ex
l r
te
rn
a
ev
en
ue
=
1
9
9
1
8
2
1
0
%
+
T
O
T
A
L
du
t r
p
ro
c
ev
en
ue
9
4
1
9
3
5
1
%
-
9
%
+
In
l re
te
rn
a
ve
nu
e
-
(
2
1
1
)
(
2
1
2
)
Ex
l r
te
rn
a
ev
en
ue
=
7
1
0
7
4
1
4
%
-
7
%
+
C
i
l
d
i
(
)
t
t
t
a
p
a
e
x
p
e
n
u
r
e
n
e
H
1
2
0
0
9
H
1
2
0
0
8
Q
2
2
0
0
9
Q
2
2
0
0
8
f p
Pu
ha
ty
lan
t a
d e
ip
t
rc
se
o
ro
p
er
p
n
q
u
me
n
,
(
)
2
5
4
(
)
3
4
3
(
)
1
4
2
1
8
4
fro
f p
Pr
ds
le
ty
lan
t a
d e
ip
t
oc
ee
m
sa
o
ro
p
er
p
n
q
u
me
n
-
,
5 1
1
3 5
Ca
i
l e
d
i
(
)
ta
tu
t
p
xp
en
re
ne
=
(
)
2
4
9
(
)
3
3
2
(
)
1
3
9
(
)
1
7
9
C
h
F
l
a
s
o
w
H
1
2
0
0
9
H
1
2
0
0
8
Q
2
2
0
0
9
Q
2
2
0
0
8
Ac
is
i
ion
d
Inv
d n
ha
f
in
i
b
le
t
tm
t a
t p
ta
ts
q
u
s a
n
es
en
n
e
ur
c
se
s o
ng
as
se
(
8
2
)
(
1
3
3
)
(
4
5
)
(
6
0
)
Pr
ds
fro
d
ive
t
i
tu
oc
ee
m
s
re
s
5
1
4
1
5
0
2
Ac
is
i
io
f
d
ive
i
t
t o
t
tu
q
ns
ne
s
re
s
u
,
(
)
3
1
(
)
9
2
5 (
)
5
8

All numbers are in \$ millions

cc = constant currency

Dialysis Services - Global

H
1
2
0
0
9
C
l
i
i
n
c
P
i
t
t
a
e
n
s
T
t
t
r
e
a
m
e
n
s
(
in
i
l
l
ion
)
m
T
l
t
o
a
2
4
1
7
,
1
9
0
0
8
1
,
1
4
4
G
h
t
r
o
w
7
%
+
6
%
+
5
%
+
N
h
A
i
t
o
r
m
e
r
c
a
1
7
3
1
,
1
2
9
1
6
3
,
9
7
G
t
h
r
o
w
%
5
+
%
4
+
%
3
+
I
i
l
t
t
n
e
r
n
a
a
o
o
n
a
a
4
0
7
6
0
9
1
8
,
4
7
G
t
h
r
o
w
%
1
0
+
%
1
0
+
%
1
1
+
E
u
r
o
p
e
4
2
1
3
0,
9
3
6
2
4
L
t
i
A
i
a
n
m
e
r
c
a
1
9
2
2
0,
5
7
9
1.
6
A
i
P
i
f
i
s
a-
a
c
c
1
2
7
9,
4
0
3
0
7

Contacts

Fresenius Medical Care AG & Co. KGaAI t R l ti Investor RelationsElse Kröner Str. 161352 Bad Homburg v.d.H.

Ordinary shares WKN 578 580ISIN DE0005785802SEDOL1 5129074 DE

Oliver MaierHead of Investor Relations & Corporate Communications Tel.: +49-( ) 0 6172-609-2601 Fax.: +49-(0)6172-609-2301 Email: [email protected]

Gerrit JostTel.: +49-(0)6172-609-5216 Fax.: +49-(0)6172-609-2301 Email: [email protected]

Terry L. Morris Tel.: +1-800-948-2538Fax.: +1-615-345-5605Email: [email protected]

ThirdQ arter Res lts 2009 Quarter Results 2009 – No ember 3 November 3, 2009

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