Investor Presentation • Jun 4, 2019
Investor Presentation
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© Copyright
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. Forward -looking 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.





Segment revenue FY 2018, number of patients and clinics as of YE 2018, yoy change │ 1 Including gain from divesture of Care Coordination activities

© │ June 2019





Solution selling
Standardized medical procedures
Capture growth in developing markets
Coordinating patients efficiently



DEVELOPING ECONOMIES – EXAMPLE CHINA
▪ Early mover in developing economies with products first
Source: WORLD BANK



1 Proposed dividend for approval at the AGM on May 16, 2019




NxStage acquisition successfully closed and integration started
Underlying business development as expected
Earnings supported by agreements that materialized earlier than planned
Cost optimization program initiated
Non-prosecution agreement concluded with U.S. government
Outlook 2019 and 2020 confirmed

| Q1 2019 € million |
Q1 2018 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 4,133 | 3,976 | 4 | (1) |
| Revenue adjusted | 4,125 | 3,725 | 11 | 6 |
| Operating income (EBIT) | 537 | 497 | 8 | 3 |
| EBIT adjusted | 551 | 506 | 9 | 4 |
| Net income | 271 | 279 | (3) | (6) |
| Net income adjusted | 318 | 296 | 8 | 3 |
1 For a detailed reconciliation please refer to chart 27

| NORTH AMERICA | € million | ||
|---|---|---|---|
| Revenue | 2,887 | (4)%cc | |
| Organic growth | +6% | ||
| EMEA | € million | ||
| Revenue | 653 | +4%cc | |
| Revenue | 653 | +4%cc |
|---|---|---|
| Organic growth | +4% | |
| ASIA-PACIFIC | € million | ||
|---|---|---|---|
| Revenue | 428 | +6%cc | |
| Organic growth | +6% |
| LATIN AMERICA | € million | |
|---|---|---|
| Revenue | 161 | +14%cc |
| Organic growth | +13% |
1 Organic growth

| Q1 2019 € million |
Q1 2018 € million |
Growth in % |
Growth in %cc |
Organic growth in % |
Same market growth in %cc |
|
|---|---|---|---|---|---|---|
| Total | 3,317 | 3,209 | 3 | (2) | 6 | 3 |
| North America | 2,680 | 2,590 | 3 | (4) | 6 | 3 |
| of which Care Coordination | 308 | 515 | (40) | (45) | 7 | n.a. |
| EMEA | 324 | 314 | 3 | 5 | 5 | 4 |
| Asia-Pacific | 199 | 184 | 8 | 4 | 5 | 7 |
| of which Care Coordination | 52 | 46 | 14 | 12 | 5 | n.a. |
| Latin America | 114 | 121 | (5) | 20 | 17 | 1 |

1 Organic growth
▪ North America growth negatively impacted by Care Coordination divestitures
▪ EMEA
positive development due to organic growth and acquisitions
▪ Asia-Pacific growth driven by same market treatment growth and acquisitions
| Q1 2019 € million |
Q1 2018 € million |
Growth in % |
Growth in %cc |
Organic growth in % |
|
|---|---|---|---|---|---|
| Total Health Care Products | 816 | 767 | 6 | 4 | 5 |
| Dialysis Products | 797 | 747 | 7 | 5 | 5 |
| North America | 2071 | 184 | 12 | 4 | 5 |
| EMEA | 310 | 302 | 3 | 3 | 4 |
| Asia-Pacific | 229 | 208 | 10 | 8 | 8 |
| Latin America | 47 | 49 | (5) | 1 | 1 |
| Non-Dialysis Products | 19 | 20 | (3) | (3) | (3) |

1 Includes a positive contribution of €29 million from the NxStage acquisition and a negative effect of €22 million from IFRS 16 implementation │2 Organic growth
| Q1 2019 € million |
Q1 2018 € million |
|
|---|---|---|
| Operating cash flow | 76 | (45) |
| in % of revenue | 1.8 | (1.1) |
| Capital expenditures, net | (199) | (218) |
| Free cash flow | (123) | (263) |
| Free cash flow, after net acquisitions and investments, incl. net investments in securities | (1,941) | (444) |

1 EBITDA: including acquisitions & divestitures with a purchase price above €50m and excluding (gain) loss related to divestitures of Care Coordination activities and excluding NxStage related transaction costs │ 2 Incl. IFRS 16 │ 3 Excl. IFRS 16 │ 4 Latest update: S&P: Jan. 8, 2019; Moody's: May 15, 2018; Fitch: March 8, 2018



| (cc) | TARGETS 2019 | 2018 BASE (in € million) |
|---|---|---|
| Revenue growth adjusted | 3 to 7% | 16,026 |
| Net income growth adjusted | (2) to 2% | 1,341 |
| (cc) | TARGETS 2020 |
|---|---|
| Revenue growth adjusted | Mid to high single digit growth rate |
| Net income growth adjusted | Mid to high single digit growth rate |
1 Targets for 2019 and 2020 are in constant currency. These targets as well as the 2018 base are and will be adjusted in order to make the business performance in the respective periods comparable for items such as: FCPA related charges, the IFRS 16 implementation, the contributions from Sound in H1 2018, the gain (loss) related to divestitures of Care Coordination activities and expenses for the cost optimization program. All effects from the NxStage acquisition are excluded from the targets for 2019 and 2020.



| Q1 2019 € million |
Q1 2018 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 4,133 | 3,976 | 4 | (1) |
| Revenue adjusted | 4,125 | 3,725 | 11 | 6 |
| EBIT | 537 | 497 | 8 | 3 |
| EBIT margin in % | 13.0 | 12.5 | (0.5)pp | (0.5)pp |
| EBIT adjusted | 551 | 506 | 9 | 4 |
| EBIT adjusted margin in % | 13.4 | 13.6 | (0.2)pp | (0.2)pp |
| Net interest expense | 108 | 83 | 30 | 24 |
| Income before taxes | 429 | 414 | 4 | (1) |
| Income tax expense | 101 | 84 | 20 | 15 |
| Tax rate in % | 23.5 | 20.3 | 3.2 | 3.4 |
| Non-controlling interest | 57 | 51 | 11 | 3 |
| Net income | 271 | 279 | (3) | (6) |
| Net income adjusted | 318 | 296 | 8 | 3 |
1 For a detailed reconciliation please refer to chart 27


© │ June 2019
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| Q1 2019 € million |
Q1 2018 € million |
|
|---|---|---|
| Revenue | 4,133 | 3,976 |
| IFRS 16 Implementation | 22 | |
| NxStage operations | (30) | |
| Sound Q1 20181 | (251) | |
| Revenue adjusted | 4,125 | 3,725 |
| Net income2 | 271 | 279 |
| IFRS 16 Implementation | 18 | |
| NxStage operations | 14 | |
| NxStage costs | 12 | |
| Cost Optimization costs | 3 | |
| Sound Q1 20181 | 4 | |
| (Gain) loss related to divestitures of Care Coordination activities | 13 | |
| Net income2 adjusted |
318 | 296 |
1 Contribution of Sound Physicians │ 2 Attributable to shareholders of FMC AG & Co. KGaA


▪ Positive: Prior year loss related to divestiture of Care Coordination activities, increased member months for health plan services, increased volumes for vascular services, a positive IFRS 16 implementation effect
| EMEA (22% of EBIT1) |
Operating income margin development reflects Positive: Reduction of a contingent consideration ▪ liability related to Xenios ▪ Negative: Higher bad debt expense, higher rent expense, impact from one less dialysis day |
109 17.1% 17.1% Q1 2018 |
138 21.1% 21.1% Q1 2019 |
|---|---|---|---|
| ASIA-PACIFIC (16% of EBIT1) |
Operating income margin development impacted by ▪ Positive: Favorable foreign currency transaction effects, a favorable impact from business growth Care Coordination margin of 11.3% |
74 19.0% Q1 2018 |
95 22.1% Q1 2019 |
| LATIN AMERICA (2% of EBIT1) |
Operating income margin development reflects ▪ Negative: Hyperinflation impact in Argentina ▪ Positive: Favorable foreign currency transaction effects |
14 8.3% 10.2% Q1 2018 |
11 7.1% Q1 2019 |
EBIT in € million; % EBIT-margin
Diagrams: different scales applied │ 1 Excl. Corporate


RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| € million | Q1 2019 excl. IFRS 16 |
Q1 2019 | 2018 | 2017 |
|---|---|---|---|---|
| Debt | ||||
| Short term debt | 1,320 | 1,320 | 1,205 | 760 |
| + Short term debt from related parties | 107 | 107 | 189 | 9 |
| + Current portion of long-term debt | 1,516 | 1,512 | 1,107 | 884 |
| + Current portion of long-term lease liabilities | - | 615 | - | - |
| + Current portion of long-term lease liabilities from related parties | - | 16 | - | - |
| + Long-term debt, less current portion | 5,690 | 5,681 | 5,045 | 5,795 |
| + Long-term lease liabilities, less current portion | - | 3,864 | - | - |
| + Long-term lease liabilities from related parties, less current portion | - | 117 | - | - |
| Total debt | 8,633 | 13,232 | 7,546 | 7,448 |
| Cash and cash equivalents | 959 | 959 | 2,146 | 978 |
| Total net debt | 7,674 | 12.273 | 5,400 | 6,470 |
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| € million | Q1 2019 excl. IFRS 16 |
Q1 2019 | 2018 | 2017 |
|---|---|---|---|---|
| EBITDA1 | ||||
| Last twelve month operating income (EBIT) | 2,244 | 2,898 | 2,215 | 2,372 |
| + Last twelve month depreciation and amortization | 770 | 937 | 716 | 731 |
| + Non-cash charges | 45 | 45 | 45 | 51 |
| EBITDA (annualized) | 3,059 | 3,880 | 2,976 | 3,154 |
| Net leverage ratio (Net debt/EBITDA) | 2.5 | 3.2 | 1.8 | 2.1 |
1 EBITDA: including acquisitions & divestitures with a purchase price above €50m and excluding (gain) loss related to divestitures of Care Coordination activities and excluding NxStage related transaction costs

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| € million | Q1 2019 | Q1 2018 |
|---|---|---|
| Acquisitions and investments | ||
| Acquisitions, investments and net purchases of intangible assets |
(1,829) | (181) |
| - Proceeds from divestitures |
11 | - |
| = Acquisitions and investments, net of divestitures | (1,818) | (181) |
| Thereof investments in securities, net of divestitures | 4 | (146) |
| Q1 2019 | Q1 2018 | |
|---|---|---|
| Capital expenditures, net | ||
| Purchase of property, plant and equipment | (201) | (221) |
| - Proceeds from sale of property, plant & equipment |
2 | 3 |
| = Capital expenditure, net | (199) | (218) |
| Balance Sheet | Q1 2019 € million |
||
|---|---|---|---|
| Assets | 4,228 | ||
| Right-of-use assets | 4,311 | ||
| Machinery and equipment | (26) | ||
| Other assets | (57) | ||
| Liabilities | 4,228 | ||
| Lease Liablities | 4,612 | ||
| Other financial debt | (12) | ||
| Other liablities | (218) | ||
| Equity | (154) |
| Profit and loss statement | Q1 2019 € million |
|---|---|
| Revenue | (22) |
| Profit from sale-leaseback transactions |
(12) |
| Rental expenses | (196) |
| EBITDA | 184 |
| Depreciation expense | (167) |
| EBIT | 17 |
| Net interest expenses | 42 |
| Taxes | (7) |
| Net Income | (18) |
| Cash flow statement | Q1 2019 € million |
|---|---|
| Cash provided by operating activities |
142 |
| Cash used in investing activities |
(10) |
| Cash used in financing activities |
(132) |
| Total | 0 |

ESTIMATED EFFECTS EXCLUDING NXSTAGE
| Balance Sheet | Impact 2019e € million |
|
|---|---|---|
| Assets | ||
| Right-of-use assets | ~3,950 | |
| Machinery and equipment | ~30 | |
| Other assets | ~(20) | |
| Liabilities | ||
| Lease Liablities | ~4,280 | |
| Other financial debt | ~70 | |
| Other liablities | ~(190) | |
| Equity | ~(200) |
| Profit and loss statement | Impact 2019e € million |
|
|---|---|---|
| Revenue | ~(110) | |
| Profit from sale-leaseback transactions |
~(30) | |
| Rental expenses | ~(790) | |
| EBITDA | ~760 | |
| Depreciation expense | ~(680) | |
| EBIT | ~80 | |
| Net interest expenses | ~170 | |
| Taxes | ~(20) | |
| Net Income | ~(70) |
| Cash flow statement | Impact 2019e € million |
|---|---|
| Cash provided by operating activities |
~580 |
| Cash used in investing activities |
~(80) |
| Cash used in financing activities |
~(500) |
| Total | 0 |
• Net leverage ratio will increase by about 0.6.

Estimated effects of the NxStage acquisition excluding integration costs:
| EUR million1 | 2019 | 2020 |
|---|---|---|
| Revenue | 240 to 260 | 310 to 330 |
| Operating income (EBIT) | (30) to (20) | 20 to 30 |
| Interest | (75) to (65) | (85) to (75) |
| Net income | (75) to (65) | (40) to (30) |
1 The numbers are excluding effects from the implementation of IFRS 16 and excluding integration costs. 2019 estimates cover the period starting on February 21, 2019 (closing date) until year-end 2019.

| 2018 € million |
2017 € million |
Growth in % |
Growth in %cc |
|
|---|---|---|---|---|
| Revenue | 16,547 | 17,784 | (7) | (2) |
| Revenue on a comparable basis | 16,547 | 16,739 | (1) | 4 |
| Revenue adjusted | 16,547 | 16,645 | (1) | 4 |
| EBIT | 3,038 | 2,362 | 29 | 33 |
| EBIT margin in % | 18.4 | 13.3 | 5.1pp | 4.8pp |
| EBIT on a comparable basis | 2,346 | 2,278 | 3 | 6 |
| EBIT adjusted | 2,346 | 2,409 | (3) | 1 |
| EBIT adjusted margin in % | 14.2 | 14.5 | (0.3)pp | (0.6)pp |
| Net interest expense | 301 | 365 | (17) | (14) |
| Income before taxes | 2,737 | 1,997 | 37 | 42 |
| Income tax expense | 511 | 443 | 15 | 21 |
| Tax rate in % | 18.7 | 22.2 | (3.5)pp | (3.3)pp |
| Non-controlling interest | 244 | 274 | (11) | (7) |
| Net income | 1,982 | 1,280 | 55 | 60 |
| Net income on a comparable basis | 1,377 | 1,242 | 11 | 14 |
| Net income adjusted | 1,185 | 1,162 | 2 | 4 |
1 For a detailed reconciliation please refer to chart 37
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES
| 2018 € million |
2017 € million |
|
|---|---|---|
| Revenue | 16,547 | 17,784 |
| IFRS 15 Implementation | (486) | |
| Sound H2 20171 | (559) | |
| Revenue on a comparable basis | 16,547 | 16,739 |
| VA Agreement2 | (94) | |
| Revenue adjusted | 16,547 | 16,645 |
| Net income5 | 1,982 | 1,280 |
| (Gain) loss related to divestitures of Care Coordination activities | (673) | |
| Sound H2 20171 | (38) | |
| 2018 FCPA Related Charge | 28 | |
| U.S. Ballot Initiatives3 | 40 | |
| Net income5 on a comparable basis |
1,377 | 1,242 |
| VA Agreement2 | (51) | |
| Natural Disaster Costs4 | 11 | |
| 2017 FCPA Related Charge | 200 | |
| U.S. Tax Reform (excl. Sound H2 2017)6 | (192) | (240) |
| Net income5 adjusted |
1,185 | 1,162 |
1 Sound H2 2017: contribution of Sound Physicians │ 2 VA Agreement: Agreement with the United States Departments of Veterans Affairs and Justice │ 3 U.S. Ballot Initiatives: contributions to the opposition to the ballot initiatives in the U.S. │ 4 Natural Disaster Costs: three hurricanes and an earthquake │ 5 Attributable to shareholders of FMC AG & Co. KGaA │ 6 U.S. Tax Reform: impacts from U.S. tax reform
| EUR million | FY 2018 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 |
|---|---|---|---|---|---|
| Revenue | 16,547 | 3,976 | 4,214 | 4,058 | 4,300 |
| Sound H1 20181 | (521) | (251) | (258) | (7) | (5) |
| Revenue adjusted | 16,026 | 3,725 | 3,956 | 4,051 | 4,295 |
| EBIT | 3,038 | 497 | 1,401 | 527 | 613 |
| Sound H1 20181 | (14) | (4) | (10) | 0 | 0 |
| (Gain) loss related to div. of Care Co. | (809) | 13 | (833) | (10) | 21 |
| 2018 FCPA related charge | 77 | 0 | 0 | 75 | 2 |
| EBIT adjusted | 2,292 | 506 | 558 | 592 | 636 |
| Net income2 | 1,982 | 279 | 994 | 285 | 425 |
| Sound H1 20181 | 4 | 4 | 0 | 0 | 0 |
| (Gain) loss related to div. of Care Co. | (673) | 13 | (686) | (17) | 17 |
| 2018 FCPA related charge | 28 | 0 | 0 | 75 | (47) |
| Net income2 adjusted |
1,341 | 296 | 308 | 343 | 395 |
1 Contribution of Sound Physicians │ 2 Attributable to shareholders of FMC AG & Co. KGaA


▪ Long-term value creation based on accretive acquisitions and organic growth
▪ ROIC adjusted2 (esp. for divestitures of Care Coordination activities): around 8.0%
1 Based on net operating profit after tax & average invested capital; adjusted for largest acquisitions and divestitures │
2 Adjusted for the divestiture of Care Coordination activities, FCPA related charge, U.S. Ballot Initiatives, U.S. tax reform / including these effects, ROIC for FY 2018 was 12.4%

| NORTH AMERICA | EMEA | LATIN AMERICA | ASIA-PACIFIC | |||||
|---|---|---|---|---|---|---|---|---|
| % of patients | Q1 2019 |
Q1 2018 | Q1 2019 |
Q1 2018 | Q1 2019 |
Q1 2018 | Q1 2019 |
Q1 2018 |
| Kt/V ≥ 1.2 | 97 | 97 | 94 | 95 | 90 | 92 | 95 | 96 |
| Hemoglobin = 10–12 g/dl | 70 | 71 | 82 | 83 | 49 | 52 | 56 | 57 |
| Calcium = 8.4–10.2 mg/dl | 85 | 85 | 79 | 80 | 77 | 78 | 74 | 74 |
| Albumin ≥ 3.5 g/dl | 81 | 80 | 89 | 88 | 91 | 90 | 90 | 89 |
| Phosphate ≤ 5.5 mg/dl | 60 | 62 | 80 | 81 | 76 | 76 | 66 | 68 |
| Patients without catheter (after 90 days) |
83 | 83 | 79 | 80 | 80 | 80 | 85 | 87 |
| in days | ||||||||
| Days in hospital per patient year | 10.3 | 11.0 | 7.5 | 7.8 | 4.3 | 4.0 | 3.0 | 3.6 |
1 Definitions of quality parameters cf. 2018 Annual Report, Section "Non-Financial Group Report" page 87


| Euro vs. | Q1 2019 | Q1 2018 | FY 2018 | |
|---|---|---|---|---|
| €:\$ | Period end | 1.124 | 1.232 | 1.145 |
| Average | 1.136 | 1.229 | 1.181 | |
| €:CNY | Period end | 7.540 | 7.747 | 7.875 |
| Average | 7.663 | 7.815 | 7.808 | |
| €:RUB | Period end | 72.856 | 70.890 | 79.715 |
| Average | 74.909 | 69.865 | 74.026 | |
| €:ARS | Period end | 48.692 | 24.782 | 43.039 |
| Average | 44.290 | 24.219 | 32.984 | |
| €:BRL | Period end | 4.387 | 4.094 | 4.444 |
| Average | 4.278 | 3.989 | 4.308 |
| Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|
| 2019 | 76 | 78 | 79 | 80 | 313 |
| 2018 | 77 | 78 | 78 | 80 | 313 |
| 2017 | 77 | 78 | 79 | 79 | 313 |
| 2016 | 78 | 78 | 79 | 79 | 314 |
| 2015 | 76 | 78 | 79 | 79 | 312 |
| cc | Constant currency |
|---|---|
| HD | Hemodialysis |
| PD | Peritoneal dialysis |
| Net income | Net income attributable to shareholders of FME |
| Sound Q1 2018 | Contribution of Sound Physicians on the profit and loss statement in the first quarter 2018 |
| July 30 | Report on 2nd quarter 2019 |
|---|---|
| October 29 | Report on 3rd quarter 2019 |
| June 5 & 6 | dbAccess Berlin Conference, Berlin |
|---|---|
| June 12 | Goldman Sachs Global Healthcare Conference, Rancho Palos Verdes |
| June 18 & 19 | SocGen "European Angle Conference", Tokyo |
| June 20 | JP Morgan European Healthcare Conference, London |
| June 27 | Site Visit St. Wendel, Meet the Management |
1 Please note that dates and/or participation might be subject to change


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
+49(0) 6172–609-2601 [email protected]
Senior Director Investor Relations
+49(0) 6172–609-2477 [email protected]
Senior Manager Investor Relations
+1-781-699-2142 [email protected]
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