Fresenius Medical Care AG & Co. KGaA

Investor Presentation • Feb 22, 2017

Q4 / FY 2016

Conference call | February 22, 2017

Rice Powell - CEO Mike Brosnan - CFO 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 current estimates and assumptions made to the best of our knowledge. 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) Annual Report on Form 20-F under the heading "Forward-Looking Statements" and under the headings in that report referred to therein, and in FMC AG & Co. KGaA's other 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. The term EMEA refers to the region Europe, Middle East and Africa. Amounts are in US-\$ if not mentioned otherwise.

AGENDA – Q4/FY 2016

2016 – Record year

	FY 2016 US\$ million	FY 2015 US\$ million	Growth in %	Growth in %cc
Revenue	17,911	16,738	7	8
Operating profit (EBIT)	2,638	2,327	13
Net income1	1,243	1,029	21
Net income (according to guidance)2	1,228	1,057	16
Basic EPS [US\$]	4.07	3.38	20

• Ambitious targets for 2016 achieved
• Very good performance in Health Care Services, particularly in North America
• Care Coordination delivered significant organic growth (+20%)
• 80 bp increase of EBIT margin (14.7%) supported by Global Efficiency Program and lower cost for healthcare supplies
• Proposed dividend increase of 20% to EUR 0.96 for fiscal 2016

2016 - organic growth trend continued

Health Care Services - continued strong growth

Revenue	FY 2016 US\$ million	FY 2015 US\$ million	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
Total Health Care	14,519	13,392	8	9	8	3.2
North America	11,982	10,932	10	10	8	3.61
of which Care Coordination	2,307	1,882	23	23	20	n.a.
EMEA	1,294	1,226	6	9	3	3.6
Asia-Pacific	730	667	9	3	4	4.7
Latin America	513	567	(9)	15	20	1.9

• Increased US organic revenue per treatment by US\$ 5 to US\$ 351
• Growth in same market dialysis treatments by 3.2%
• Care Coordination with ongoing significant organic growth
• Contributions from acquisitions

¹ U.S. (excl. Mexico)

cc = constant currency

Consistent quality outcomes remain on high level

		North America	EMEA		Latin America1		Asia-Pacific1
% of patients	Q4 2016	Q3 2016	Q4 2016	Q3 2016	Q4 2016	Q3 2016	Q4 2016	Q3 2016
Kt/V ≥ 1.2	98	97	96	96	91	93	97	97
No catheter (>90 days)	84	86	81	81	82	81	91	91
Hemoglobin = 10 – 12 g/dl	73	73	78	77	52	52	60	59
Hemoglobin = 10 – 13 g/dl (International)	79	79	77	77	68	67	68	67
Albumin ≥ 3.5 g/dl	78	77	91	91	91	88	89	88
Phosphate ≤ 5.5 mg/dl	64	64	77	76	77	76	72	72
Calcium 8.4 – 10.2 mg/dl	84	84	76	75	79	75	75	75
Hospitalization days, per patient	10.0	9.8	9.4	9.4	3.8	3.7	4.4	4.3

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

Stable Dialysis Products development

	FY 2016 US\$ million	FY 2015 US\$ million	Growth in %	Growth in %cc
Total Dialysis Products	3,392	3,346	1	4
North America	904	881	3	3
EMEA	1,373	1,403	(2)	--
Asia-Pacific	902	835	8	12
Latin America	199	199	--	7
Corporate	14	28	(48)	(48)

• Revenue growth in line with global patient growth
• Strong results in North America and Asia-Pacific segment

cc = constant currency

20th consecutive dividend increase

Dividend per share in EUR

Dividend proposal in line with net income growth

1 proposed dividend for approval at the AGM on May 11, 2017

2016 Highlights

• We continued to improve the quality of life for our patients
• We delivered on our targets of strong revenue and profit growth
• We delivered on our Global Efficiency Program savings
• Progress in our Care Coordination business continues, we are positioned as a provider of choice for value-based care in the US

AGENDA – Q4/FY 2016

Financials & outlook

Q&A 3

2

1

EBIT increase ahead of revenue growth

	Q4 2016 US\$ million	Q4 2015 US\$ million	Growth in %	FY 2016 US\$ million	FY 2015 US\$ million	Growth in %
Net revenue	4,687	4,348	8	17,911	16,738	7
Operating income (EBIT)	786	662	19	2,638	2,327	13
EBIT-margin in %	16.8	15.2	160bp	14.7	13.9	80bp
Net interest expense	98	88	11	406	391	4
Income before taxes	688	574	20	2,232	1,936	15
Income tax expense	212	180	18	683	623	10
Tax rate in %	30.8	31.4	(60bp)	30.6	32.1	(150bp)
Non-controlling interest	88	77	15	306	284	8
Net income1	388	317	23	1,243	1,029	21

Revenue for fiscal 2016 increased by 8% at constant currency (+7% excl. acquisition impacts of 2015 & 2016), in line with guidance

Net income growth of 16% in fiscal 2016 based on guidance assumptions for 2016²

1 Net income attr. to shareholders of FME | 2 for details see attachment 4, page 26

FY 2016 – regional margin profile

Profitability increase driven by lower costs for health care supplies and higher volume with commercial payors

• Care Coordination at the lower end of the margin guidance (~3%)

• 2015 basis includes US\$ 60m for Granuflo settlement expense²

• Prior year impacted by a gain from the sale of our European pharma marketing rights²

• 2016 affected by higher bad debt expense, lower income from equity method investees and unfavorable foreign exchange effects

margin

%

1 excl. Corporate | 2 details on attachment 3, page 23

FY 2016 – regional margin profile

Strong cash flow development and deleveraging

	Q4 2016	Q4 2015	Growth	FY 2016	FY 2015	Growth
	US\$ million	US\$ million	in %	US\$ million	US\$ million	in %
Operating cash flow	844	548	54	2,140	1,960	9
in % of revenue	18.0	12.6	540bp	11.9	11.7	20bp
Capital expenditures, net	(279)	(299)	(7)	(1,012)	(935)	8
Free cash flow	565	249	127	1,128	1,025	10
Free cash flow, after acquisitions and investments	392	307	28	761	959	(21)

Current ratings

Total debt/EBITDA-ratio

	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.

	Guidance 2017	2016 base (IFRS/€m)
Revenue growth	8 to 10%	16,570
Net income growth	7 to 9%	1,144
	Vision 2020 (2014-2020, avg. % p.a.)	20202 (IFRS/€bn)
Revenue growth	~ 10	24
Net income growth	high single digit

Assumptions:

• Numbers at constant currency, 2017 target excl. effect from agreement with United States Departments of Veterans Affairs and Justice
• Net income refers to net income attributable to shareholders of FMC AG & Co. KGaA

1 Outlook based on constant currencies | 2 US-GAAP US\$ 28bn target translated to IFRS/€ with fx rates as of the beginning of 2017

AGENDA – Q4/FY 2016

Your questions are welcome

Conference call | February 22, 2017

Rice Powell - CEO Mike Brosnan - CFO

Back-up

Conference call | February 22, 2017

Rice Powell - CEO Mike Brosnan - CFO

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

US\$ million

Debt	FY 20141	FY 2015	FY 2016
Short term debt	133	109	603
+ Short term debt from related parties	5	19	3
+ Current portion of long-term debt and capital lease obligations	314	664	763
+ Long-term debt and capital lease obligations less current portion	9,014	7,854	7,203
TOTAL debt	9,466	8,646	8,572
EBITDA	FY 2014 2)	FY 2015	FY 20162
Last twelve month operating income (EBIT)	2,347	2,327	2,626
+ Last twelve month depreciation and amortization	716	717	784
+ Non-cash charges	57	83	99
EBITDA (annualized)	3,120	3,127	3,509
Total Debt 1) / EBITDA	3.0	2.8	2.4

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

2) EBITDA: including largest acquisitions

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

US\$ million

Cash flow	Q4 2015	Q4 2016	FY 2015	FY 2016
Acquisitions, investments and net purchases of intangible assets	(151)	(191)	(317)	(578)
+ Proceeds from divestitures	209	18	251	211
= Acquisitions and investments, net of divestitures	(58)	(173)	(66)	(367)

Capital expenditures, net	Q4 2015	Q4 2016	FY 2015	FY 2016
Purchase of property, plant and equipment	(306)	(282)	(953)	(1,030)
- Proceeds from sale of property, plant & equipment	7	3	18	18
= Capital expenditure, net	(299)	(279)	(935)	(1,012)

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

Q4 2015	Q4 2016	FY 2015	FY 2016
662	786	2,327	2,638
42	-	61	-
-	-	26	-
(18)	-	(25)	-
60		60
704	786	2,388	2,638
Q4 2015	Q4 2016	FY 2015	FY 2016
317	388	1,029	1,243
30	-	53	-
-	-	27	-
(7)	-	(11)	-
37		37
347	388	1,082	1,243

Reconciliation of non U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures Operating performance excluding acquisition impact and special items – basis for guidance 2016

US\$ million	FY 2015	FY 2016
Revenue	16,738	17,911
Contributions from acquisitions closed in 2015 and 2016	(74)	(275)
Revenue excluding acquisition impact	16,664	17,636
Operating income (EBIT)	2,327	2,638
Contributions from acquisitions closed in 2015 and 2016	(16)	(39)
Settlement costs for an agreement in principle GranuFlo	60	--
Operating income (EBIT) excluding acquisition impact and special items	2,371	2,599
Net income1	1,029	1,243
Contributions from acquisitions closed in 2015 and 2016	(9)	(15)
Settlement costs for an agreement in principle GranuFlo	37	--
Net income excluding acquisition impact and special items1	1,057	1,228

1) attributable to shareholders of FMC AG & Co. KGaA

Q4 2016 - Health Care Services & Product revenue

	Q4 2016 US\$ million	Q4 2015 US\$ million	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
Total Health Care Services	3,799	3,462	10	10	8	2.8
North America	3,144	2,845	11	11	9	1 3.2
of which Care Coordination	603	501	20	20	22	-
EMEA	327	306	7	10	4	3.3
Asia-Pacific	192	171	12	5	4	3.6
Latin-America	136	140	(3)	14	14	1.9
		Q4 2016 US\$ million	Q4 2015 US\$ million		Growth in %	Growth in %cc
Total Dialysis Products		888		886	--	2
North America		230		239	(4)	(4)
EMEA		357		367	(3)	--
Asia-Pacific		241		223	8	10
Latin America		56		50	11	7
Corporate		4		7	(53)	(52)

¹ U.S. (excl. Mexico)

cc = constant currency

The sligthly lower DSO rate is based on good payment collection esp. in EMEA and Asia Pacific.

Balance sheet remains solid

FY 2016 - patients, treatments, clinics

	Patients as of Dec. 31, 2016	Treatments 12m 2016, in million	Clinics as of Dec. 31, 2016
North America	188,987	28.9	2,306
Growth in %	3	4	4
EMEA	59,767	8.9	711
Asia-Pacific	29,328	4.0	374
Latin America	30,389	4.8	233
Total	308,471	46.5	3,624
Growth in %	5	4	6

Recent M&A activities

• Intensified focus on India as a key market in Asia Pacific

• Dialysis Service segment backed by well established product business

• Access to a unique product portfolio in the field of extracorporeal lung and heart assist

• Lung support treatments similar to hemodialysis

Q3 2016 Q4 2016 H1 2017 (e) ¹

• Leverage FMEs core competence of operating outpatient facilities
• Roll out Care Coordination services outside the US

Dialysis Care Coordination New products 1 subject to closing, which is expected in H1 2017

U.S. dialysis days per quarter
	Q1	Q2	Q3	Q4	Full year
2015	76	78	79	79	312
2016	78	78	79	79	314
2017	77	78	79	79	313

Exchange rates
		Q4 2015	FY 2015	Q4 2016	FY 2016
\$:€	Period end	1.0887	1.0887	1.0541	1.0541
	Average	1.0953	1.1095	1.0789	1.1069
\$:CNY	Period end	6.4855	6.4855	6.9445	6.9445
	Average	6.3914	6.2851	6.8299	6.6422
\$:RUB	Period end	74.1009	74.1009	60.9999	60.9999
	Average	66.1070	61.3538	63.0222	66.9840
\$:ARS	Period end	12.9825	12.9825	15.8602	15.8602
	Average	10.1201	9.2570	15.4456	14.7567
\$:BRL	Period end	3.9604	3.9604	3.2544	3.2544
	Average	3.8473	3.3352	3.2947	3.4837

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 calendar¹

• May 11, 2017 Annual General Meeting, Frankfurt
• June 8, 2017 Capital Markets Day, Frankfurt

	Feb 23-24, 2017		Roadshow London, Frankfurt, Edinburgh
--	-----------------	--	---------------------------------------

• Feb 28, 2017 J.P. Morgan Global High Yield & Lev. Finance Conference
• Mar 1-2, 2017 Roadshow Boston, New York
• Mar 15, 2017 Exane BNP Paribas Healthcare Conference, Paris

Mar 30, 2017 Bankhaus Lampe Conference, Baden Baden

* 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

Dr. Dominik Heger Head of Investor Relations and Corporate Communications

Tel: +49–(0) 6172–609–2601 Email: dominik.heger@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

Q4 / FY 2016

Conference call | February 22, 2017

Rice Powell - CEO Mike Brosnan - CFO