Fresenius Medical Care AG & Co. KGaA

Investor Presentation • Jun 27, 2018

Credit Suisse European Medtech & Healthcare Services Day

Zurich | June 27, 2018

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. Forwardlooking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or might not even be anticipated. The Company has based these forward-looking statements on current estimates and assumptions which we believe are reasonable and which are 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 or competitive conditions, changes in reimbursement, regulatory compliance issues, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, cyber security issues 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 Frankfurt Stock Exchange (Frankfurter Wertpapierbörse).

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 Euro if not mentioned otherwise.

FY 2017 - Growth trend continued

FY 2017: All business areas fueled our growth

cc = constant currency

Segment revenue FY 2017, according to IFRS in EUR bn, number of patients and clinics as of YE 2017, yoy change

Organic growth drivers

Patient growth driven by

• age, lifestyle and higher life expectancy
• increasing wealth and access to medical treatments

1 Internal estimates as of Dec. 31, 2017

Home Dialysis Segment: Increasing Penetration

Address the evolving needs and expectations of patients 82% of patients and families fully educated on their treatment options would select a home modality¹

Home dialysis advantages

• More engaged patients, taking responsibility for their wellbeing while reducing cost of care supporting our value based strategy
• Flexibility to tailor the therapy around the patient's lifestyle while delivering positive clinical results
• Higher patient satisfaction in home environment

Trends in home dialysis in the U.S.

(number of ESRD cases in thousands) 2004-2015²

1 Devoe et al., American Journal of Kidney Disease, 2016 ) |

2 ESRD and Fresenius Medical Care. FME Home Dialysis represents unique patients with any time on HHD or PD

Data Source: https://www.usrds.org/2017/view/v2\_01.aspx (figure 1.15)

Q1 2018: Solid underlying growth trend continued¹

	Q1 2018 € million	Q1 2017 € million	Growth in %	Growth in %cc
Revenue	3,976	4,548	(13)	(1)
Revenue adjusted	3,976	4,409	(10)	2
Revenue adjusted and excl. special items	3,976	4,309	(8)	4
EBIT	497	651	(24)	(15)
EBIT adjusted	510	651	(22)	(13)
EBIT adjusted and excl. special items	510	552	(8)	3
Net income	279	308	(10)	0
Net income adjusted	292	308	(5)	5
Net income adj. and excl. special items	244	249	(2)	8
Basic EPS [€]	0.91	1.01	(10)	0
Basic EPS adj. [€]	0.95	1.01	(5)	5

• Prior year contribution from the VA Agreement
• Headwinds from foreign exchange rates affected reported growth
• Calcimimetic drugs moved from Part D to Part B

1 Details for adjustments and special items see chart 31

Q1 2018: Organic growth across all regions

North America	€ million		EMEA	€ million
Revenue	2,774	(5%)cc	Revenue	636	+6%cc
Organic growth		+1%	Organic growth		+4%
Asia-Pacific	€ million		Latin America	€ million
Revenue	392	+14%cc	Revenue	170	+17%cc
Organic growth		+7%	Organic growth		+16%

EMEA	$\epsilon$ million
Revenue	636	$+6%$ cc
Organic growth		$+4%$
Latin America	$\epsilon$ million
Revenue		$170 + 17\%$ cc
Organic growth		$+16%$

• Contributions by all regions to organic growth rates
• North America growth impacted by lower Care Coordination and prior year VA Agreement effect

Q1 2018 Health Care Services: Soft start into the year

Revenue	Q1 2018 € million	Q1 2017 € million	Growth in %	Growth in %cc	Organic growth in %	Same market growth in %
Total	3,209	3,769	(15)	(3)	2	2
North America	2,590	3,165	(18)	(6)	1	2
of which Care Coordination	515	691	(25)	(14)	(9)	-
EMEA	314	303	4	6	2	2
Asia-Pacific	184	169	9	20	5	4
of which Care Coordination	46	20	130	154	16	-
Latin America	121	132	(8)	15	12	1

• North American Care Coordination 2 business impacted by decline in the pharmacy business
• Growth in Asia-Pacific strongly supported by acquisitions

Q1 2018 Products: Strong start into the year

	Q1 2018 € million	Q1 2017 € million	Growth in %	Growth in %cc
Total Health Care Products	767	779	(2)	6
Dialysis Products	747	758	(1)	7
North America	184	210	(12)	1
EMEA	302	290	4	7
Asia-Pacific	208	209	0	8
Latin America	49	45	9	25
Non-Dialysis Products	20	21	(6)	(6)

• North America: Higher sales of renal drugs and PD products
• EMEA: Increased sales of products for acute care, machines and PD as well as drugs
• Asia-Pacific: Increased sales of chronic HD products and products for acute care

Q1 2018: Cash flow & net leverage ratio

	Q1 2018 in € million	Q1 2017 in € million
Operating cash flow	(45)	1701
in % of revenue	(1.1%)	3.7%
Capital expenditures, net	(218)	(195)
Free cash flow	(263)	(25)
Free cash flow, after acquisitions and investments	(444)	(185)

Days sales outstanding (DSO) at 85 days worldwide.

Net leverage ratio (Net debt/EBITDA)

	S&P	Moody's	Fitch
Company	BBB-	Baa3	BBB
Outlook	positive	stable	stable

© │ Deutsche Bank – dbAccess Berlin Conference │ June 2018 20 1 Incl. €193m cash contribution from VA Agreement | 2 Latest update: S&P: Dec. 27, 2017; Moody's: May 15, 2018; Fitch: Aug. 30, 2017

Outlook¹

	Targets 2018	2017 base (in € million)
Revenue growth adjusted2	5 to 7%	17,298
Net income growth adjusted3	13 to 15%	1,280
Net income growth adjusted and excl. special items4	7 to 9%	1,204
	Targets 2020 (2014-2020, avg. % p.a.)	20205 (in € billion)
Revenue growth	~10%	24
Net income growth6	high single digit

Backup

FY 2017: Solid growth delivered

				Adjusted2
	2017 € million	2016 € million	Growth in %	2017 € million	2016 € million	Growth in %	Growth in %cc
Revenue	17,784	16,570	7	17,690	16,570	7	9
Operating income (EBIT)	2,362	2,409	(2)	2,493	2,409	4	5
EBIT margin in %	13.3	14.5	(1.2)pp	14.1	14.5	(0.4)pp	(0.4)pp
Net interest expense	354	366	(3)	354	366	(3)	(2)
Income before taxes	2,008	2,043	(2)	2,139	2,043	5	7
Income tax expense	454	623	(27)	663	623	6	9
Tax rate in %	22.6	30.5	(7.9)pp	31.0	30.5	0.5pp	0.5pp
Non-controlling interest	274	276	0	272	276	(1)	1
Net income1	1,280	1,144	12	1,204	1,144	5	7

Net interest expense decreased mainly driven by the replacement of interest bearing bonds and by debt instruments at lower interest rates

Income tax expense decrease mainly resulted from the re-measurement of deferred tax balances following the U.S. tax reform

FY 2017: Revenue and net income reconciliation

1 cc, excluding special items: VA agreement, Natural Disaster Costs, FCPA related charge & 2017 book gain from U.S. tax reform (details chart 26) | FX = translational foreign exchange effects | cc= constant currency

Basis for target 2018

Reconciliation of non IFRS financial measures to the most directly comparable IFRS financial measures

Revenue excluding IFRS 15, net income excluding VA Agreement and adjusted for the cost effects, net of anticipated recoveries from Natural Disasters in North America, FCPA charges and also excluding 2017 book gain from the U.S. tax reform.

€ million	2017
Revenue	17,784
Effects from IFRS 15 implementation	(486)
Revenue adjusted (basis for revenue adjusted target 2018)	17,298
Net income (basis for net income adjusted target 2018)	1,280
VA agreement	(51)
Natural Disaster Costs	11
FCPA related charge	200
U.S. tax reform	(236)
Net income excluding special items (basis for net income adjusted and excl. special items target 2018)	1,204

Return on Invested Capital¹ (ROIC)

Long-term value creation based on accretive acquisitions and organic growth

1 Based on net operating profit after tax (adjusted for largest acquisitions and divestitures) & average invested capital | 2 As announced at the Capital Markets Day 2014

Q1 2018: Patients, treatments, clinics

	Patients as of March 31, 2018	Treatments Q1 2018, in million	Clinics as of March 31, 2018
North America	197,339	7,473,764	2,419
Growth in %	4	3	4
EMEA	63,114	2,387,160	754
Growth in %	5	5	4
Asia-Pacific	30,194	1,060,114	385
Growth in %	2	2	2
Latin America	31,606	1,233,126	232
Growth in %	5	4	0
Total	322,253	12,154,164	3,790
Growth in %	4	3	4

Debt and EBITDA

Reconciliation of non-IFRS financial measures to the most comparable IFRS measure

€ million

Debt	FY 2016	FY 2017	Q1 2018
Short term debt	572	760	1,011
+ Short term debt from related parties	3	9	41
+ Current portion of long-term debt and capital lease obligations	724	884	872
+ Long-term debt and capital lease obligations less current portion	6,833	5,795	5,797
Total debt	8,132	7,448	7,721
Cash and cash equivalents	709	978	846
Total net debt	7,423	6,470	6,875
EBITDA	FY 20161	FY 20171	Q1 20181
Last twelve month operating income (EBIT)	2,398	2,372	2,199
+ Last twelve month depreciation and amortization	710	731	717
+ Non-cash charges	65	51	51
EBITDA (annualized)	3,173	3,154	2,967
Net leverage ratio (Net debt/EBITDA)	2.3	2.1	2.3

1 EBITDA: including acquisitions & divestitures with a purchase price above €50m

Cash Flow and Capital Expenditures

Reconciliation of non-IFRS financial measures to the most comparable IFRS measure

€ million

Cash Flow	Q1 2017	Q1 2018
Acquisitions, investments and net purchases of intangible assets	(160)	(181)
- Proceeds from divestitures	-	-
= Acquisitions and investments, net of divestitures	(160)	(181)

Capital expenditures, net	Q1 2017	Q1 2018
Purchase of property, plant and equipment	(197)	(221)
- Proceeds from sale of property, plant & equipment	2	3
= Capital expenditure, net	(195)	(218)

Q1 2018: Reconciliation special items

Reconciliation of non IFRS financial measures to the most directly comparable IFRS financial measures

Revenue excluding VA Agreement and adjusted for IFRS 15, operating performance excluding VA Agreement and adjusted for initial Sound Valuation impact and for net income also excluding gain from the U.S. tax reform.

€ million	Q1 2017	Q1 2018	Growth in %	Growth in %cc
Revenue	4,548	3,976	(13)	(1)
Effect from IFRS 15 implementation	(139)
Revenue adjusted	4,409	3,976	(10)	2
VA Agreement	(100)
Revenue adjusted and excluding special items	4,309	3,976	(8)	4
Operating income (EBIT)	651	497	(24)	(15)
Initial Sound valuation impact		13
EBIT adjusted	651	510	(22)	(13)
VA Agreement	(99)
EBIT adjusted and excluding special items	552	510	(8)	3
Net income	308	279	(10)	0
Initial Sound valuation impact		13
Net income adjusted	308	292	(5)	5
VA Agreement	(59)
U.S. tax reform		(48)
Net income adjusted and excluding special items	249	244	(2)	8

Net income adjusted and excl. special items, € million – targets: 7 – 9%cc growth

Q1 2018: Regional margin profile

• Solid Dialysis business margin of 15.4% reflects
• Negative: prior year impact of the VA Agreement, higher implicit price concessions (IFRS 15), lower revenue from commercial payors and shift of calcimimetic drugs
• U.S. revenue per treatment, adj. for IFRS 15, decreased to \$348 (Q1 2017: \$357). Excluding the VA Agreement and IFRS 15, the RPT increased by \$6. U.S. cost per treatment, adj. for IFRS 15, increased to \$288 (Q1 2017: \$276).

Care Coordination margin of 2.6% reflects

• Positive: pharmacy services, lower bad debt expense, the prior year change in fair value of subsidiary share-based compensation and increased earnings recognized related to ESCOs
• Negative: lower earnings from the BPCI initiative due to the initial revenue recognition in the prior year and the valuation of Sound Physicians sharebased payment program

Q1 2018: Regional margin profile

Latin America (3% of EBIT¹)

• Operating profit margin development reflects
• Positive: foreign currency translation effects
• Negative: higher costs related to inflation

1 Excl. Corporate | Diagrams: different scales applied

in € million EBIT % EBIT-margin

Q1 2018: Quality outcomes remain on high level¹

	North America		EMEA		Latin America		Asia-Pacific
% of patients	Q1 2018	Q1 2017	Q1 2018	Q1 2017	Q1 2018	Q1 2017	Q1 2018	Q1 2017
Kt/V > 1.2	98	98	95	95	92	93	96	96
Hemoglobin = 10–12 g/dl	72	72	83	82	52	52	57	59
Calcium = 8.4–10.2 mg/dl	85	84	80	77	78	78	74	75
Albumin ≥ 3.5 g/dl	79	78	88	88	90	90	89 v	87
Phosphate ≤ 5.5 mg/dl	62	63	81	79	76	75	68	67
Patients without catheter (after 90 days)	82	83	80	81	80	81	87	89
in days
Days in hospital per patient year	10.2	10.2	7.6	7.9	4.0	4.0	3.6	4.0

1 Definitions cf. Annual Report 2017, Section "Non-Financial Group Report"

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
2018	77	78	78	80	313

Exchange rates

		Q1 2017	FY 2017	Q1 2018
€:\$	Period end	1.069	1.199	1.232
	Average	1.065	1.130	1.229
€:CNY	Period end	7.364	7.804	7.747
	Average	7.335	7.629	7.815
€:RUB	Period end	60.313	69.392	70.890
	Average	62.522	65.938	69.865
€:ARS	Period end	16.419	22.639	24.782
	Average	16.694	18.754	24.219
€:BRL	Period end	3.380	3.973	4.094
	Average	3.347	3.605	3.989

Our portfolio of Care Coordination businesses

Mid-term revenue and growth profile – 2020e

Size of circle indicates absolute revenue contribution in 2020e. Positioning of bubble illustrative.

Definitions

Initial Sound Valuation impact

cc Constant currency

PD Peritoneal Dialysis

Net income Net income attributable to shareholders of FME

Initial increase in valuation of Sound Physicians' share based payment program caused by sale of Sound Physicians

U.S. Tax Reform U.S. Tax Reform: impacts from of U.S. tax reform

VA Agreement Agreement with the United States Departments of Veterans Affairs and Justice

Financial calendar 2018¹

• July 31 Report on 2nd quarter 2018
• Aug 28 Commerzbank Sector Conference, Frankfurt
• Sep 05 Goldman Sachs Medtech & Healthcare Services Conference, London
• Sep 06 Wells Fargo Securities Healthcare Conference, Boston
• Sep 12 Bank of America Merrill Lynch Global Healthcare Conference, London
• Sep 14 Morgan Stanley Global Healthcare Conference, New York
• Sep 24 Berenberg & Goldman Sachs German Corporate Conference, Munich
• Sep 25 Baader Investment Conference, Munich
• Sep 26 Bernstein Strategic Decision Conference, London
• Sep 28 JP Morgan Milan Forum, Milan

1 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

Philipp Gebhardt

Senior Manager Investor Relations Tel.: +49–(0) 6172–609–7323 Email: philipp.gebhardt@fmc-ag.com