Fresenius Medical Care AG & Co. KGaA

Investor Presentation • Sep 12, 2012

Bank of America Merrill Lynch Global Healthcare Conference

London September 12, 2012

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 forwardlooking 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 forwardlooking 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.

Financial Results

Excellent revenue growth of 13% in Q2 2012 in constant currency (North America +14%; International +11%)

In US-\$ million	Q2 2011	Q2 2012	Growth in %
Net revenue	3,138	3,428	9
EBIT	510	589	16
Net income attributable to FMC AG & Co. KGaA	261	289	11
Earnings per ordinary share	0.86	0.95	10
Operating cash flow	311	451	45
Excluding investment gain:
Net income attributable to FMC AG & Co. KGaA	261	276	6

Q2 | Revenue split by region

North America

Revenue \$ 2,249 m + 14% Organic growth + 2%

International ~ 34% of total revenue

Revenue	\$ 1,171 m	+	11%cc
Organic growth			+ 6%
EMEA	\$ 725 m		+ 9%cc
Asia-Pacific	\$ 256 m		+ 8%cc
Latin America	\$ 190 m	+	20%cc

2012 | Outlook confirmed | excl. investment gain

Revenue growth in constant currency	• 13 -15%
Revenue	1) • ~ \$ 14.0 bn
Operating margin	• ~ 16.9%
Net income, attributable to shareholders of FMC AG & Co. KGaA	1) • ~ \$ 1.14 bn
Acquisitions	• ~ \$ 1.8 bn
Capex	• ~ \$ 0.7 bn
Total debt / EBITDA	• < 3.0

1) US-GAAP revenue following first time adoption of Accounting Standards Codification 954-605 where patients service revenues is reduced for bad debt. The comparable revenue for the fiscal year 2011 is \$12,571 million. Additionally we are defining the ~ sign as a +/- 0-2% deviation from the respective numbers

Market position by major product groups

	Rank 1	Rank 2
Dialyzers	FME	Gambro
Dialysis machines	FME	Nikkiso
Hemodialysis concentrates	FME	Fuso
Bloodlines	FME	Gambro
Peritoneal dialysis products	Baxter	FME

Dialyzers

Dialysis machines

Sold around 93,000,000 dialyzers in 2011

World Leader in Dialysis Services¹

We lead in every major market, treating more than 256,000 patients worldwide

Global Market Opportunity

Dialysis Market by Region Global Reimbursement for

Market Opportunities for Fresenius Medical Care

Product Launches

CREATING A FUTURE WORTH LIVING. FOR PEOPLE. WORLDWIDE. EVERY DAY.

Thank you very much for your attention!

© Fresenius Medical Care, September 2012 16

Q2 | Dialysis Services | Clinic network status

	Clinics	De novo	Acquired
	as of June 30, 2012	Additions Q2 2012	Q2 2012
Total	3,123	21	15
Growth vs. June 30, 2011	+ 10%
North America	2,046	16	4
Growth vs. June 30, 2011	+ 12%
International	1,077	5	11
Europe	611	3	6
Latin America	224	2	4
Asia-Pacific	242		1
Growth vs. June 30, 2011	+ 6%

Q2/H1 | Dialysis Services | Revenue growth

Strong growth of 16% in constant currency

In US-\$ million	Q2 2011	Q2 2012	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
North America	1,772	2,043	15	15	2	4
International	534	562	5	16	5	4
Total	2,305	2,605	13	16	3	4
			Growth	Growth	Organic growth	Same market growth
In US-\$ million	H1 2011	H1 2012	in %	in %cc	in %	in %
North America	3,501	3,960	13	13	2	4
International	1,037	1,122	8	16	5	4
Total	4,538	5,082	12	14	3	4

Q2 | U.S. Dialysis Services

Q2/H1 | Dialysis Products | Revenue growth

Growth at or above estimated market growth

US-\$ in millions	Q2 2011	Q2 2012	Growth in %	Growth in %cc
Total Product Revenue	1,127	1,120	(1)	6
North America	199	206	3	3
International	629	609	(3)	6
Total External Revenue	832	823	(1)	6

US-\$ in millions	H1 2011	H1 2012	Growth in %	Growth in %cc
Total Product Revenue	2,151	2,182	1	6
North America	395	393	(1)	(1)
International	1,180	1,185	0	7
Total External Revenue	1,584	1,595	1	6
cc = constant currency

Q2 | Strong revenue growth in North America

	Growth (Q2 2012 / Q2 2011)
North America 	+14%
Services 	+15%
Products - External Revenue (North America) 
Total Renal Products 	+3.1%
Products - External Revenue (North America adj.*) 
Total Renal Products 	+6.2%
*Adjusted to exclude Liberty/RAI from External Revenue

2012 | Expectations for North America | Update Closed Liberty/RAI in Q1 2012 and integrate through remainder of 2012 Expect strong revenue growth » Q4 '11: 1.1%, Q1 '12: 9.3%, Q2 '12: 14.1% Improve same store growth » Q4 '11: 2.7%, Q1 '12: 3.4%, Q2 '12: 3.6% Expect further improved patient care outcomes

• Continued excellent operating performance
• Continued dialogue with government on integrated care

Q2 | U.S. Healthcare reform update

Prospective Payment System (PPS) Rule for Medicare patients

• For FY 2013, CMS projects that the market basket increase factor is 3.2%, based on the most recent cost of labor, goods and services incorporated in dialysis care
• Updating the base rate to \$240.88
• CMS also proposes a productivity adjustment for CY 2013 of 0.7 percent
• In keeping with the statute's requirement to subtract the productivity adjustment from the market basket update, the net increase is therefore 2.5 percent
• Retaining the zero percent transition adjustment
• Sequestration of -2% in 2013?
• Reimbursement leakage under case mix adjusters (\$1-2/tmt) continues

Quality Incentive Program (QIP)

• Two proposed measures for 2013 (each weighted 50%) Hb > 12 g/dL and URR ≥ 65%
• Eight proposed measures for 2014 (5 clinical; 3 reporting)

Q2 | Profit & Loss

US-\$ in millions	Q2 2011	Q2 2012	Growth in %
Net revenue	3,138	3,428	9	13% cc
Operating income (EBIT)	510	589	16
Operating margin in %	16.2	17.2
Net interest expense	75	104
Income before taxes	435	498	14	Excluding investment gain \$485 m +11%
Income tax expense	149	172
Tax rate in %	34.2	34.6		Excluding investment gain 35.5%
Non-controlling interest	25	37
Net income attributable to FMC AG & Co. KGaA	261	289	11	Excluding investment gain \$276m +6%
cc = constant currency

Q2 | Day Sales Outstanding (DSO)

Excellent development with decrease of 4 days sequentially

• International DSO decreased sequentially by 4 days and year over year by 1 day
• North America DSO down sequentially by 1 day and year over year by even 5 days

Q2 | Cash Flow

US-\$ in millions	Q2 2011	Q2 2012	Growth in %
Operating cash flow	311	451	45	Favorable DSO development globally
% of revenue	10	13
Capital expenditures, net*	(117)	(151)
Free cash flow	194	300	54
Acquisitions and investments, net of divestitures*	(784)	6
Free cash flow after acquisitions and investments	(590)	306

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

Q2 | Total Debt/EBITDA

• FY 2012 target of < 3.0
• Total debt of \$8,784 m and annualized EBITDA of \$3,005 m

Q2 | Summary

• Maintain and continue to provide the highest quality of patient care and products on a global basis
• Progressing well with the integration of the acquisitions
• Strong cash collection despite difficult global economic environment
• Remain highly focused on a global basis with payers to achieve their goal to provide cost effective patient care while making sure that we get paid for our services in a timely manner
• Continue to focus on R&D and also evaluate clinical approaches on anemia, phosphorus and hydration management which will be essential for potential hospitalization reductions - important to our patients & the cost for the payers
• Confirm our guidance for FY 2012

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

External revenue Q2 (excl. Corporate)	Q2 2011	Q2 2012	Growth in %	Growth in % cc
International product revenue	729	712	(2)	8
- Internal revenue	(100)	(103)
= International external revenue	629	609	(3)	6
North America product revenue	394	400	1	1
- Internal revenue	(195)	(194)
= North America external revenue	199	206	3	3
Total product revenue	1,127	1,120	(1)	6
- Internal revenue	(295)	(297)
Total external revenue	832	823	(1)	6

Capital expenditure, net	Q2 2011	Q2 2012
Purchase of property, plant and equipment	(121)	(153)
- Proceeds from sale of property, plant and	4	2
equipment
= Capital expenditure, net	(117)	(151)

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

External revenue H1 (excl. Corporate)	H1 2011	H1 2012	Growth in %	Growth in % cc
International product revenue	1,371	1,394	2	9
- Internal revenue	(191)	(209)
= International external revenue	1,180	1,185	0	7
North America product revenue	771	771	0	0
- Internal revenue	(376)	(378)
= North America external revenue	395	393	(1)	(1)
Total product revenue	2,151	2,182	1	6
- Internal revenue	(567)	(587)
Total external revenue	1,584	1,595	1	6

Capital expenditure, net	H1 2012	H1 2012
Purchase of property, plant and equipment	(238)	(277)
- Proceeds from sale of property, plant and	7	3
equipment
= Capital expenditure, net	(231)	(274)

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

Cash Flow	H1 2011	H1 2012	Q2 2011	Q2 2012
Acquisitions, investments and net purchases of intangible assets	(1,122)	(1,748)	(784)	(45)
+ Proceeds from divestitures	-	228	-	51
= Acquisitions and investments, net of divestitures	(1,122)	(1,520)	(784)	6

Patients, treatments, clinics – Q2 2012	Clinics	Patients	Treatments in million
North America	2,046	164,058	11.89
Growth in %	12	17	12
International	1,077	92,398	7.0
Growth in %	6	7	18
Europe	611	48,946	3.71
Latin America	224	26,261	2.01
Asia-Pacific	242	17,191	1.28
TOTAL	3,123	256,456	18.89
Growth in %	10	14	14

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

Debt	Q2 2012	FY2011	FY 2010	FY 2009	FY 2008	FY 2007
Short term borrowings (incl. A/R program1)	103	99	671	316	684	217
+ Short term borrowing from related parties	52	28	10	10	1	2
+ Current portion of long-term debt and capital lease obligations	3,086	1,589	264	158	455	85
+ Current portion of trust preferred securities	-	-	625	-	-	670
+ Long-term debt and capital lease obligations less current portion	5,543	5,495	4,310	4,428	3,957	4,004
+ Trust preferred securities less current portion	-	-	-	656	641	664
TOTAL debt	8,784	7,211	5,880	5,568	5,738	5,642
EBITDA	Q2 2012	FY2011	FY 2010	FY 2009	FY 2008	FY 2007
Last twelve months operating income (EBIT)	2,349	2,075	1,924	1,756	1,672	1,580
+ Last twelve months depreciation and amortization	603	557	503	457	416	363
+ Non-cash charges	53	54	45	50	44	41
EBITDA (annualized)	3,005	2,686	2,472	2,263	2,132	1,984
Total Debt / EBITDA	2.92	2.69	2.38	2.46	2.69	2.84