Fresenius Medical Care AG & Co. KGaA

Investor Presentation • Feb 20, 2020

Q4 2019 CONFERENCE CALL FEBRUARY 20, 2020

Rice Powell - CEO Helen Giza - 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. 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 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.

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FY 2019 | FOUNDATION FOR CONTINUED GROWTH

• Solid Q4 performance

• Full year guidance achieved

• Investments in home dialysis and growth markets as planned

• Cost optimization initiatives as planned

• 23rd consecutive dividend increase proposed

• Outlook 2020 confirmed

FY 2019 | GROWTH CONTINUED

ORGANIC GROWTH DRIVERS INTACT

HOME STRATEGY ON TRACK

DIALYSIS TREATMENTS U.S.

Target 2022: 15%+ of treatments in the U.S. performed in a home setting

• Invested into expansion of home treatments: Home training facilities, educational staff and materials along with scaling the distribution infrastructure
• Reducing Capex for De novo clinics
• Increasing awareness for early recognition of CKD to ensure smooth transition to dialysis

Q4 2019 | QUALITY OUTCOMES REMAIN KEY

	NORTH AMERICA			EMEA	LATIN AMERICA		ASIA-PACIFIC
% of patients	Q4 2019	Q4 2018	Q4 2019	Q4 2018	Q4 2019	Q4 2018	Q4 2019	Q4 2018
Kt/V ≥ 1.2	97	97	94	95	91	91	95	96
Hemoglobin = 10–12 g/dl	71	72	82	82	50	53	56	58
Calcium = 8.4–10.2 mg/dl	81	86	79	81	76	75	74	74
Albumin ≥ 3.5 g/dl	81	81	89	90	91	90	87	89
Phosphate ≤ 5.5 mg/dl	60	62	80	81	76	75	63	67
Patients without catheter (after 90 days)	81	83	78	79	79	80	83	86
in days
Days in hospital per patient year	10.3	10.8	7.5	7.8	4.3	4.2	2.6	3.3

Definitions of quality parameters cf. 2019 Annual Report, Section "Non-Financial Group Report"

FY 2019 | DELIVERED ON GUIDANCE

	2019 € million	2018 € million	Growth in %	Growth in %cc	Guidance 2019 in %cc
Revenue	17,477	16,547	6	2
Revenue adjusted	17,329	16,026	8	5	3-7
Operating income	2,270	3,038	(25)	(28)
Operating income adjusted	2,296	2,292	0	(4)
Net income	1,200	1,982	(39)	(42)
Net income adjusted	1,369	1,341	2	(2)	(2)-2

cc = at constant currency

For a detailed reconciliation for revenue and net income please refer to chart 32

Q4 2019 | THE GROWTH STORY CONTINUES

	Q4 2019 € million	Q4 2018 € million	Growth in %	Growth in %cc
Revenue	4,580	4,300	7	4
Revenue adjusted	4,546	4,294	6	4
Operating income	616	613	1	(2)
Operating income adjusted	655	636	3	0
Net income	343	425	(19)	(21)
Net income adjusted	408	395	3	0

▪ 5.2% organic revenue growth

• Continued tailwind from FX effects
• Revenue and net income in Q4 contributed to achieve FY 2019 guidance as planned

cc = at constant currency

For a detailed reconciliation for revenue and net income please refer to chart 32

Q4 2019 | ALL REGIONS CONTRIBUTE TO GROWTH

NORTH AMERICA	€ million
Revenue	3,174	3%cc
Organic growth		5%

EMEA	€ million
Revenue	709	4%cc
Organic growth		3%

ASIA-PACIFIC	€ million
Revenue	499	7%cc
Organic growth		6%

LATIN AMERICA	€ million
Revenue	193	24%cc
Organic growth		19%

• Strong organic revenue growth in all regions
• North America and Asia-Pacific with highest growth contribution

Q4 2019 SERVICES | STRONG UNDERLYING GROWTH CONTINUED

Revenue	Q4 2019 € million	Q4 2018 € million	Growth in %	Growth in %cc	Organic growth in %	Same market treatment growth in %
Health Care Services	3,607	3,413	6	3	5	3
North America	2,893	2,746	5	2	5	3
of which Care Coordination	325	291	12	8	9
EMEA	352	331	6	5	5	3
Asia-Pacific	230	207	11	7	6	7
of which Care Coordination	68	60	13	10	7
Latin America	132	129	3	25	21	4

Drivers

• • Same market treatment growth
• • Organic revenue per treatment
• • Acquisitions
• − Revenue recognition adjustment for accounts receivable in legal dispute
• − Closed and sold clinics

Q4 2019 PRODUCTS | STRONG UNDERLYING GROWTH CONTINUED

Revenue	Q4 2019 € million	Q4 2018 € million	Growth in %	Growth in %cc	Organic growth in %
Health Care Products	973	887	10	8	4
Dialysis Products	953	869	10	8	4
North America	281	235	20	16	4
EMEA	337	330	2	2	2
Asia-Pacific	269	247	9	6	6
Latin America	61	53	14	20	15
Non-Dialysis Products	20	18	9	9	9

Drivers

• • Home HD products
• • HD solutions and concentrates
• • Renal drugs
• • Dialyzers and bloodlines
• − Machines

DIVIDEND INCREASE PROPOSED

DIVIDEND PER SHARE IN EUR

Proposed dividend for 2019 of €1.20 to be approved by the AGM on May 19, 2020

GLOBAL SUSTAINABILITY PROGRAM INITIATED

GLOBAL ENVIRONMENTAL & SOCIAL GOVERNANCE

• 8 materiality areas identified and will be addressed
• Responsibility with the Sustainability Decision Board, headed by the CEO
• Involvement of senior representatives in all regions and global functions

2020 | GROWTH MODE TO CONTINUE

FOCUS ON

• Leverage on our investments in home dialysis and developing markets

• U.S. President's Executive Order

• Prepare for Medicare Advantage opportunity in 2021

• Implementation of a Global Sustainability Program

OPPORTUNITIES

• Faster shift to home dialysis
• Faster rollout of 4008A
• Beneficial reimbursement environment

RISKS

• Legislative activities
• Regulatory changes
• Lower growth contribution from acquisitions

FINANCIAL UPDATE

KEY PRIORITIES

• Simplify guidance and reduce complexity of financial reporting

• Deliver global efficiency results

• Complete share buyback of up to €1bn

• Manage capital allocation and optimize working capital

• Expand contribution of cashflow from operations

Q4 2019 | REGIONAL MARGIN PROFILE

NORTH AMERICA (72% OF OPERATING INCOME)

DIALYSIS BUSINESS MARGIN OF 16.7%

• • Higher utilization of oral based ancillaries
• • Prior year discontinuation of a non-IFRS policy
• − Revenue recognition adjustment for accounts receivable in legal dispute of €86 million
• − Cost optimization costs

CARE COORDINATION MARGIN OF 12.1%

• • Divestiture of Care Coordination activities
• − Lower volumes for pharmacy services

Operating income excluding Corporate Operating income in €m; % Operating income margin

Q4 2019 | REGIONAL MARGIN PROFILE

EMEA (16% of Operating income)	Operating income margin development reflects + Reduction of a contingent consideration liability (Xenios) − Higher personnel expense	97 14.1% 14.4% Q4 2018	114 14.6% 16.1% Q4 2019
ASIA-PACIFIC (10% of Operating income)	Operating income margin development reflects − Impact from business growth − Cost optimization costs − Higher personnel expense	86 18.8% Q4 2018	75 15.0% Q4 2019
LATIN AMERICA (2% of Operating income)	Operating income margin development reflects + Reimbursement rate increases − Foreign currency transaction effects	5 2.8% Q4 2018	15 7.6% Q4 2019

Operating income excluding Corporate Operating income in €m; % Operating income margin

Q4 2019 | GROUP OPERATING INCOME DEVELOPMENT

Relevant margin drivers

Reported:

• • Higher utilization of oral based ancillaries
• • Higher margin in Care Coordination
• − Lower operating margins in Asia-Pacific and North America
• − Unfavorable impact from Corporate costs

Adjusted:

• • Higher operating margins in North America and EMEA
• − Unfavorable impact from Corporate costs

Operating income in €m; % Operating income margin

FY 2019 | CASH FLOW, NET LEVERAGE RATIO & CURRENT RATINGS

	Q4 2019 € million	Q4 2018 € million	2019 € million	2018 € million
Operating cash flow	771	698	2,567	2,062
in % of revenue	16.8	16.2	14.7	12.5
Capital expenditures, net	(337)	(301)	(1,113)	(1,003)
Free cash flow	434	397	1,454	1,059
Free cash flow after investing activities	230	296	(719)	1,817

NET LEVERAGE RATIO (NET DEBT/EBITDA)¹

Current ratings4	S&P	Moody's	Fitch
Rating	BBB	Baa3	BBB
Outlook	stable	stable	stable

1 See Chart 34 for a reconciliation of EBITDA │2 Incl. IFRS 16│3 Excl. IFRS 16 4 Latest update: S&P: May 23, 2019; Moody's: October 7, 2019; Fitch: March 8, 2018

OUTLOOK | TARGETS CONFIRMED

PREVIOUS REPORTING VIEW

Constant currency	TARGETS 2020
Revenue growth adjusted	Mid to high single digit growth rate
Net income growth adjusted	Mid to high single digit growth rate

Excluding effects to make the business performance comparable, such as:

• NxStage acquisition

• IFRS 16 implementation

• Cost Optimization Program

• Care Coordination gains/losses

2019 BASIS FOR SIMPLIFIED REPORTING VIEW 2020

REVENUE, € MILLION

17,329	263		17,477
		-115
Revenue	NxStage	IFRS 16	2019
FY 2019	operations		Revenue
adjusted			basis for targets 2020

NET INCOME, € MILLION

SIMPLIFIED 2020 TARGETS

REVENUE

(constant currency) Mid to high single digit

growth rate

NET INCOME (constant currency) Mid to high single digit

growth rate

2019: EUR 17,477m 2019: EUR 1,236m

Excluding special items: Special items are effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance.

Your Questions Are Welcome!

Q4 2019 | REVENUE AND NET INCOME GROWTH

REVENUE ADJUSTED, € MILLION – TARGET: 3% TO 7%CC GROWTH

NET INCOME ADJUSTED, € MILLION – TARGET: (2%) TO 2%CC GROWTH

FY 2019 | REVENUE AND NET INCOME GROWTH

REVENUE ADJUSTED, € MILLION – TARGET: 3% TO 7%CC GROWTH

NET INCOME ADJUSTED, € MILLION – TARGET: (2%) TO 2%CC GROWTH

Q4 2019 | PROFIT AND LOSS

	Q4 2019 € million	Q4 2018 € million	Growth in %	Growth in %cc
Revenue	4,580	4,300	7	4
Revenue adjusted	4,546	4,294	6	4
Operating income	616	613	1	(2)
Operating income margin in %	13.5	14.3	(0.8)pp	(0.9)pp
Operating income adjusted	655	636	3	0
Operating income adjusted margin in %	14.4	14.8	(0.4)pp	(0.5)p
Net interest expense	102	58	78	74
Income before taxes	514	555	(8)	(10)
Income tax expense	109	63	73	68
Tax rate in %	21.3	11.4	9.9pp	9.9pp
Non-controlling interest	62	67	(8)	(11)
Net income	343	425	(19)	(21)
Net income adjusted	408	395	3	0

For a detailed reconciliation for revenue and net income please refer to chart 32

pp = percentage point

FY 2019 | PROFIT AND LOSS

	2019 € million	2018 € million	Growth in %	Growth in %cc
Revenue	17,477	16,547	6	2
Revenue adjusted	17,329	16,026	8	5
Operating income	2,270	3,038	(25)	(28)
Operating income margin in %	13.0	18.4	(5.4)pp	(5.5)pp
Operating income adjusted	2,296	2,292	0	(4)
Operating income adjusted margin in %	13.2	14.3	(1.1)pp	(1.2)pp
Net interest expense	429	301	43	37
Income before taxes	1,841	2,737	(33)	(35)
Income tax expense	402	511	(21)	(24)
Tax rate in %	21.8	18.7	3.1pp	3.2pp
Non-controlling interest	239	244	(2)	(7)
Net income	1,200	1,982	(39)	(42)
Net income adjusted	1,369	1,341	2	(2)

For a detailed reconciliation for revenue and net income please refer to chart 32 pp = percentage point

2019 | RECONCILIATION ADJUSTMENTS

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES

	Q4 2019 € million	Q4 2018 € million	2019 € million	2018 € million
Revenue	4,580	4,300	17,477	16,547
IFRS 16 implementation	40		115
NxStage operations	(74)		(263)
H1 Sound		(6)		(521)
Revenue adjusted	4,546	4,294	17,329	16,026
Net income	343	425	1,200	1,982
IFRS 16 implementation	25		70
NxStage operations	15		63
NxStage costs	1		18
Cost optimization costs	44		67
H1 Sound				4
(Gain) loss related to divestitures of Care Coordination activities	(20)	17	(49)	(673)
FCPA		(47)		28
Net income adjusted	408	395	1,369	1,341

H1 Sound relates to the contribution of Sound Physicians

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES

	2019 € million, excl. IFRS 16	2019 € million	2018 € million	2017 € million
Debt
Short term debt	1,150	1,150	1,205	760
+ Short term debt from related parties	22	22	189	9
+ Current portion of long-term debt	1,435	1,447	1,107	884
+ Current portion of long-term lease liabilities		622
+ Current portion of long-term lease liabilities from related parties		17
+ Long-term debt, less current portion	6,378	6,458	5,045	5,795
+ Long-term lease liabilities, less current portion		3,960
+ Long-term lease liabilities from related parties, less current portion		106
Total debt	8,985	13,782	7,546	7,448
− Cash and cash equivalents	(1,008)	(1,008)	2,146	978
Total net debt	7,977	12,774	5,400	6,470

EBITDA

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES

	2019 € million, excl. IFRS 16	2019 € million	2018 € million	2017 € million
Net income	1,509	1,439	2,226	1,554
+ Income tax expense	429	402	511	443
− Interest income	(62)	(62)	(147)	(51)
+ Interest expense	319	491	448	416
+ Depreciation and amortization	854	1,553	725	736
+ Adjustments	110	110	(722)	56
Adjusted EBITDA (annualized)	3,159	3,933	3,041	3,154
Net leverage ratio (Net debt/EBITDA)	2.5	3.2	1.8	2.1

Adjustments for acquisitions & divestitures with a purchase price above €50m, non-cash charges primarily related to pension expense, impairment losses, (gain) loss related to divestitures of Care Coordination activities with a sales price above €50m and NxStage related transaction costs

ACQUISITIONS & INVESTMENTS AND CAPITAL EXPENDITURES

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO THE MOST DIRECTLY COMPARABLE IFRS FINANCIAL MEASURES

	Q4 2019 € million	Q4 2018 € million	2019 € million	2018 € million
Acquisitions and investments
Acquisitions and investments, net of cash acquired, and purchases of intangible assets	(208)	(117)	(2,233)	(925)
− Proceeds from divestitures	4	16	60	1,683
= Acquisitions and investments, net of divestitures	(204)	(101)	(2,173)	758
Thereof investments in securities, net of divestitures	3	(8)	5	(330)

	Q4 2019 € million	Q4 2018 € million	2019 € million	2018 € million
Capital expenditures, net
Purchase of property, plant and equipment	(337)	(325)	(1,125)	(1,057)
− Proceeds from sale of property, plant & equipment	0	24	12	54
= Capital expenditure, net	(337)	(301)	(1,113)	(1,003)

Q4 YTD 2019 | EFFECTS ACCORDING TO IFRS 16

EFFECTS INCLUDING NXSTAGE

Balance Sheet	Dec 31, 2019 € million
Assets	4,356
Right-of-use assets	4,361
Machinery and equipment	36
Other assets	(41)
Liabilities	4,356
Lease liablities	4,705
Other financial debt	92
Other liablities	(232)
Equity	(209)

Profit and loss statement	Q4 YTD 2019 € million
Revenue	(115)
Profit from sale leaseback transactions	(55)
Rental expenses	(829)
EBITDA	774
Depreciation expense	(699)
Operating Income	75
Net interest expenses	172
Taxes	(27)
Net Income	70

Cash flow statement	Q4 YTD 2019 € million
Cash provided by operating activities	620
Cash used in investing activities	(61)
Cash used in financing activities	(559)
Total	0

Net leverage ratio increased by 0.7.

FY 2019 | SERVICES

Revenue	FY 2019 € million	FY 2018 € million	Growth in %	Growth in %cc	Organic growth in %	Same market treatment growth in %
Health Care Services	13,872	13,264	5	1	5	4
North America	11,157	10,725	4	(1)	4	4
of which Care Coordination	1,184	1,636	(28)	(31)	(1)
EMEA	1,354	1,274	6	7	6	3
Asia-Pacific	862	776	11	7	6	7
of which Care Coordination	241	208	16	13	7
Latin America	499	489	2	25	20	2

FY 2019 | PRODUCTS

Revenue	FY 2019 € million	FY 2018 € million	Growth in %	Growth in %cc	Organic growth in %
Total Health Care Products	3,605	3,283	10	8	5
Dialysis Products	3,529	3,209	10	8	5
North America	1,038	845	23	16	6
EMEA	1,263	1,239	2	2	2
Asia-Pacific	997	913	9	8	8
Latin America	210	197	6	12	10
Non-Dialysis Products	76	74	3	3	3

2019 BASE FOR GUIDANCE 2020

	FY 2019 € million	Q1 2019 € million	Q2 2019 € million	Q3 2019 € million	Q4 2019 € million
Revenue before special items	17,477	4,133	4,345	4,419	4,580
Net income before special items	1,236	286	250	332	368

RETURN ON INVESTED CAPITAL (ROIC)

• Long-term value creation based on accretive acquisitions and organic growth
• 2018 positive impact from Sound divestiture

• 2019 negative impact from NxStage acquisition

• For the years 2015-17 ROIC as reported within the Form-20-F.

• ROIC adjusted in 2018 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%
• ROIC adjusted in 2019 for the effects of IFRS 16, NxStage, FCPA, Cost optimization costs, divestiture of Care Coordination activities / including these effects, ROIC for FY 2019 was 6.8% (excl. IFRS 16)

GLOBAL EFFICIENCY PROGRAM II

SUSTAINED SAVINGS 2018 - 2020

EXCHANGE RATES U.S. DIALYSIS DAYS PER QUARTER

Euro vs.		2019	2018	2017
€:\$	Period end	1.123	1.145	1.199
	Average	1.119	1.181	1.130
€:CNY	Period end	7.821	7.875	7.804
	Average	7.735	7.808	7.629
€:RUB	Period end	69.956	79.715	69.392
	Average	72.455	74.026	65.938
€:ARS	Period end	67.212	43.039	22.639
	Average	53.948	32.984	18.754
€:BRL	Period end	4.516	4.444	3.973
	Average	4.413	4.308	3.605

	Q1	Q2	Q3	Q4	Full year
2020	77	78	79	79	313
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

DEFINITIONS

cc	Constant currency
HD	Hemodialysis
PD	Peritoneal dialysis
Net income	Net income attributable to shareholders of FME
H1 Sound	Contribution of Sound Physicians on the profit and loss statement in 2018

FY 2019 | PATIENTS, TREATMENTS, CLINICS

	Patients as of December 31, 2019	Treatments 12M 2019	Clinics as of December 31, 2019	Patients as of December 30, 2018	Treatments 12M 2018	Clinics as of December 31, 2018
North America	211,064	32,138,448	2,579	204,107	30,846,876	2,529
Growth in %	3	4	2	3	3	6
EMEA	66,217	10,042,109	781	65,061	9,731,941	776
Growth in %	2	3	1	4	4	4
Asia-Pacific	33,005	4,579,220	400	31,476	4,371,742	394
Growth in %	5	5	2	6	3	3
Latin America	34,810	5,388,330	234	32,687	5,080,020	229
Growth in %	6	6	2	4	4	(1)
Total	345,096	52,148,107	3,994	333,331	50,027,579	3,928
Growth in %	4	4	2	4	4	5

FINANCIAL CALENDAR 2020

REPORTING DATES & AGM

May 6 Q1 Earnings Release and Conference Call May 19 Annual General Meeting, Frankfurt am Main July 30 Q2 Earnings Release and Conference Call October 29 Q3 Earnings Release and Conference Call

CONFERENCES & MEET THE MANAGMENT

March 4	Credit Suisse 2020 Global Healthcare Conference, London
March 6	Jefferies Swiss Summit, Zurich
March 11-12	Barclays Global Healthcare Conference, Miami
March 19	Kepler Cheuvreux European Gems Seminar, New York
March 24	Bankhaus Lampe German Conference, Baden-Baden
October 8	Capital Markets Day 2020, Frankfurt am Main

Please note that dates and/or participation might be subject to change

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, Strategic Development & Communications | EVP

+49(0) 6172-609-2601 dominik.heger@fmc-ag.com

ROBERT ADOLPH

Vice President Investor Relations

+49(0) 6172-609-2477 robert.adolph@fmc-ag.com

PHILIPP GEBHARDT

Director Investor Relations

+1-781-699-2142 philipp.gebhardt@fmc-ag.com