Fresenius SE & Co. KGaA — Call Transcript 2013

Apr 30, 2013

Analyst Conference Call – Q1/13 Results

April 30, 2013

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

Fresenius Group: Financial Results

	S l a e s	1 E B I T	1 i N t e n c o m e
/ Q 1 1 3	€ 4 8 9 0 m ,	€ 6 9 6 m	€ 2 2 4 m
h G t t t t r o w a c o n s a n t c u r r e n c y r a e s	1 2 %	6 %	1 2 %
G h l t t t r o w a a c u a t c u r r e n c y r a e s	1 1 %	5 %	1 2 %

1Before one-time items

Fresenius Group: Financial Results by Business Segment

/ Q 1 1 3	F i r e s e n u s M d i l C e c a a r e	F i r e s e n u s K b i a	F i r e s e n u s H l i e o s	F i r e s e n u s V d a m e
l S a e s h G t r o w	\$ S 3 6 U 4 4 m , 7 %	€ 1 2 6 0 m , 1 5 %	€ 8 4 1 m 1 8 %	€ 1 8 4 m 2 3 %
E B I T h G t r o w	\$ U S 4 9 3 m 2 % -	€ 2 3 7 m 0 1 %	8 € 7 m 2 8 %	€ 5 m 0 %

Fresenius Kabi: Update Q1/13

• Excellent start into the year
• 7% organic sales growth; 20.0% EBIT margin excl. Fenwal
• Europe
• 2% organic growth on shortage-inflated Q1/12 base; Clinical Nutrition growth expected to accelerate
• I.V. drug launch schedule backloaded in 2013, frontloaded in 2012
• Expect mid single-digit growth in FY/2013
• Asia-Pacific
• 9% organic growth on top of strongest 2012 quarter
• Back to double-digit growth in FY/2013
• North America
• 14% organic growth strong start
• Expect to maintain majority Propofol market share in 2013
• Shortage situation unchanged gradual easing assumed
• FY/2013: expect low to mid single-digit percent sales decrease – fully baked into Kabi 2013 guidance

Fresenius Helios: Update Q1/13

• 5% organic sales growth at upper end of guidance
• Excellent EBIT margin increase to 11.2% (+140 bps) in established clinics
• Wage contracts in place for >80% of HELIOS employees until end of 2013 and for ~40% until end of 2014; average increase of <3% p.a. fully in line with budget assumptions
• Hospital transaction market awarded/acquired revenue YTD: ~€200 m; projects ~€120 million in revenue pending

HELIOS Endo Klinik Hamburg

Fresenius Vamed: Update Q1/13

• • Excellent quarter with 10% organic sales growth; EBIT fully in line with expectations
• 15% organic sales growth in service business, now serving 355 health care facilities with >100,000 beds
• • Update on Italian market expansion – 5 new contracts for maintenance/technical management of medical equipment, serving ~3,800 hospital beds
• • Further expansion into CIS countries
• €48 million turnkey project in Moscow
• €11 million medical equipment contracts in Turkmenistan

Group Financials Q1/13 − Outlook 2013

Fresenius Group: Profit and Loss Statement

/ / Q 3 Q 2 1 1 1 1		G h Q t r o w	/ 3 Y Y 1 1 o
		l t a c a u t r a e s	t t c o n s a n t r a e s
4 8 9 0 ,	4 4 1 9 ,	1 1 %	1 2 %
6 9 6	6 6 1	% 5	6 %
1 6 3 -	1 4 7 -	1 1 % -	1 2 % -
1 5 5 -	6 1 5 -	% 1	0 %
2 2 4	2 0 0	1 2 %	1 2 %

1 2013 adjusted for one-time integration costs of Fenwal of €7 million

2 Net income attributable to shareholders of Fresenius SE & Co. KGaA, 2013 adjusted for one-time integration costs of Fenwal of €5 million, 2012 adjusted for a non-taxable investment gain of €30 million at Fresenius Medical Care.

Fresenius Kabi: EBIT Margin at Upper End of Guidance

€ m	Q / 1 1 3	Q / 1 1 2	G h t r o w
E u r o p e M i a r g n	8 4 6. 2 % 1	9 6 9 % 1 7	3 1 % -
h N A i t o r m e r c a M i a r g n	1 5 4 3 8. % 4	1 1 4 3 9 0 %	3 % 5
f / / f A i P i i L i A i A i t s a a c c a n m e r c a r c a - M i a g n r	6 5 1 9 0 %	5 8 1 8. 5 %	1 2 %
d C C & t t R D o p o a e a n o p o a e r r r r	6 6 -	3 5 -	2 % 5 -
( ) T l E B I T i l. F l t o a n c e n w a M i a r g n	2 3 7 1 8 8 %	2 1 5 1 9 7 %	1 0 %
( ) T l E B I T l. F l t o a e x c e n w a i M a r g n	2 3 1 % 2 0 0	2 1 5 % 1 9 7	% 7

Analyst Conference Call – Q1/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, April 30, 2013

Fresenius Helios: Excellent Sales and EBIT Growth

€ m	Q / 1 1 3	Q / 1 1 2	G h t r o w
T l l t o a s a e s	8 4 1	0 7 1	8 % 1
E B I T
b l h d l f l E i i i i t t s a s e c n c p o r o o M i a r g n	8 3 1 1. 2 %	6 9 9 8 %	2 0 %
/ A i i i D i i t t t q o n e e c u s s v s u r s ( l i d i / d l i d i ) t t 1 < c o n s o a o n e c o n s o a o n y r	4	1 -
T l E B I T t o a	8 7	6 8	2 8 %
i M a r g n	% 1 0 3	% 9 6

2012 adjusted for post-acute care clinic Zihlschlacht – transferred to Fresenius Vamed.

Analyst Conference Call – Q1/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, April 30, 2013

Cash Flow Development

€ m	C O i F t p e r a n g		C a p e	( ) t x n e		1 C F h F l r e e a s o w
	Q / 1 1 3	i L T M M a r g n	Q / 1 1 3	i L T M M a r g n	Q / 1 1 3	i L T M M a r g n
	1 3 2	1 3 5 %	( ) 5 6	( ) 5 5 %	7 6	8 0 %
	3 3	2 % 7	( 9 ) 1	( 2 % ) 5	1 4	3 2 0 %
	4 5	4 0 %	( ) 1	( ) 1 3 %	4 4	2 7 %
Co / te rp or a O t he r	5 -	/ n a	( ) 1	/ n a	6 -	/ n a
C l. F M ex c	2 0 5	2 1 0 6 %	( ) 7 7	( ) 5 0 %	1 2 8	2 5 6 %
Gr ou p	4 4 4	9 % 1 1	( ) 8 8 1	( ) % 5 0	2 5 6	9 % 6

Before Acquisitions and Dividends

2Incl. FMC dividend

3Understated: 2.8% excluding €25 million of capex commitments from acquisitions

Fresenius Group: Financial Outlook by Business Segment Fully Confirmed

F i r e s e n s u b i K a	l h S t a e s g o r w c c S l h t i a e s g r o w o r g a n c E B I T i l. l F m a g n r e x c e n w a E B I T i l. l i F m a r g n n c e n a w	1 2 % 1 4 % – 3 % % 5 – 1 9 % 2 0 % – 8 % 9 % 1 1 –
i F r e s e n u s H l i e o s	l h S t i a e s g o r w o g n r a c E B I T	3 % 5 % – € 3 6 0 € 3 8 0 m –
i F r e s e n u s V d a m e	l h S t a e s g o r w h E B I T t g r o w	8 % 1 2 % – % 1 0 % 5 –

Fresenius Group: Financial Outlook Fully Confirmed

h R t e e n e g o v u r w t t t a c o n s a n c e n c u r r y	% 0 % 7 1 ‒
1 h N i t t e n c o m e g o r w t t t a c o n s a n c e n c u r r y	% 2 % 7 1 ‒

1 Net income attributable to shareholders of Fresenius SE&Co.KGaA adjusted for one-time integration costs of Fenwal (~€50 million pre-tax)

Attachments

Fresenius Group:

Overview – Calculation of Noncontrolling Interest

€ m	Q / 1 1 3	/ F Y 1 2
b f d l l E i i i t t t t a n n g s e o e a a n n o n c o n o n g n e e s r r x r r	5 2 6	2 3 9 1 ,
T a x e s	3 1 5 -	6 9 5 -
f l l h N i i t t t, t o n c o n o n g n e e s e e o r r r	1 5 4 -	8 0 6 -
i d i l C i F M t t r e s e n u s e c a a r e n e n c o m e n o b b l ( / ) i F i Q 1 1 3 6 9 % t t t t a r u a e o r e s e n u s : ~	8 1 1 -	6 3 9 -
l l h l d d l N i i i F i M i C t t t o n c o n o n g n e e s o e s n e s e n s e c a a e r r r r u r \$ \$ ( / 2 0 2 S 0 Q / 2 0 3 S 3 d F Y 1 U 1 4 1 1 U 5 i : m : m a c c o r n g , d l 's l ) F i M i C F i i S t t t t o r e s e n u s e c a a r e n a n c a a e m e n s	2 6 -	1 0 9 -
l l h l d b N i i i F i K i t t t o n c o n o n g n e e s o e s n e s e n s a r r r r u ( € ), i l i ( € 2 ) d d 7 F H t m r e s e n u s e o s m a n u e o - - d 's l h ( ) F i V 2 3 % i € 1 t r e s e n u s a m e e x e r n a o w n e r s p m -	1 0 -	5 8 -
b b l N i i F i S E & C K G A t t t t t e n c o m e a r u a e o r e s e n u s o a	2 1 9	9 2 6

Fresenius Group: Cash Flow

€ m	/ Q 3 1 1	M M L T i a r g n	/ Q 2 1 1	M M L T i a r g n	G h Y t r o w Y o
O i C h F l t p e r a n g a s o w	4 4 4	% 1 1 9	8 5 3	% 1 1 6	% 1 7 -
C ( ) t a p e x n e	8 8 1 -	0 % 5 -	2 1 5 -	6 % 4 -	2 % 4 -
F C h F l r e e a s o w ( b f d d d d ) i i i i i t e o r e a c q u s o n s a n v e n s	2 5 6	6 9 %	3 8 6	7 0 %	3 4 % -
( ) A i i i t t c q u s o n s n e	2 3		8 1, 4 5 -		0 2 % 1
d d D i i v e n s	0 5 -		2 4 -		0 8 % 1 -
F C h F l r e e a s o w ( f d d d d ) i i i i i t t a e r a c q u s o n s a n v e n s	2 2 9	0 3 %	1 0 9 6 - ,	1 0 2 % -	1 2 1 %

Cash Flow Development LTM

€ m	O p e r a	i C C F t n g a p e x		( ) t n e		1 h l F s o w
	/ L T M Q 1 1 3	L T M M in a rg	/ L T M Q 1 1 3	L T M M in a rg	/ L T M Q 1 1 3	L T M M in a rg
	6 3 5	3 % 1 5	( 2 9 ) 5	( % ) 5 5	3 6 7	8 0 %
	2 3 9	7 2 %	( ) 1 7 1	( ) 5 2 %	8 6	3 2 0 %
	3 5	0 % 4	( ) 1 1	( ) 1 3 %	2 4	2 % 7
Co / te rp or a O he t r	2 4 -	/ n a	( ) 1 1	/ n a	3 5 -	/ n a
l. F M C ex c	8 8 5	2 0 % 1 6	( ) 2 4 5	( ) 0 % 5	3 3 4	2 % 5 6
Gr ou p	2 3 4 4 ,	% 1 1 9	( ) 9 8 8	( ) % 5 0	1 3 5 6 ,	% 6 9

1 Before Acquisitions and Dividends

2 Incl. FMC dividend

3 Understated: 2.8% excluding €25 million of capex commitments from acquisitions

Margin = in % of sales

Fresenius Group: Debt and Interest Ratios

1Pro forma Fenwal

• Adjusted for one-time costs (€6 million) related to the offer to the shareholders of RHÖN-KLINIKUM AG, for other one-time costs (€86 million) at Fresenius Medical Care as well as one-time integration costs (€7 million) at Fenwal
• 3Pro forma including Liberty Dialysis Holdings, Inc., Damp Group, and Fenwal

4Adjusted for one-time costs (€6 million) related to the offer to the shareholders of RHÖN-KLINIKUM AG and for other one-time costs (€86 million) at Fresenius Medical Care.

Analyst Conference Call – Q1/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, April 30, 2013

Fresenius Kabi: Strong Organic Sales Growth

€ m	/ Q 1 1 3	/ Q 1 1 2	O i r g a n c G h t r o w
f h I i T n u s o n e r a p y	2 0 5	2 6 4	% 5
I. V D r u g s	4 6 0	4 1 0	1 3 %
C l l i i N i i t t n o n c a u r	3 2 6	3 6 1	% 5
d l / i i M D e c a e c e s v f i h l T T a n s s o n e c n o o g r u y	2 2 4	2 0 1	% 1 -
T l l t o a s a e s	1 2 6 0 ,	1 0 9 2 ,	% 7

Fresenius Kabi: Strong Organic Sales Growth

€ m	Q / 1 1 3	Q / 1 1 2	O i r g a n c G h t r o w
E u r o p e	5 1 7	4 8 7	2 %
h N A i t o r m e r c a	0 4 1	2 9 2	% 1 4
f i i i A P s a a c c -	2 2 3	9 9 1	9 %
/ f L i A i A i t a n m e c a c a r r	1 1 9	1 1 4	9 %
l l T t o a s a e s	1 2 6 0 ,	1 0 9 2 ,	% 7

Fresenius Helios: Strong Organic Sales Growth

€ m	/ Q 3 1 1	/ Q 2 1 1	G h t r o w
b l h d l f l E i i i i t t s a s e c n c p o r o o	3 9 7	0 6 7	% 5
A i i i t ( l d ) c q u s o n s i i 1 t < c o n s o a o n y r	0 2 1
i i D t t e s e s ( d l d ) v u r i t i 1 < e c o n s o a o n y r		4
l l T t o a s a e s	8 4 1	7 1 0	% 1 8

2012 adjusted for post-acute care clinic Zihlschlacht transferred to Fresenius Vamed.

Fresenius Helios: Performance Indicators

	/ Q 1 1 3	/ Q 1 1 2	C h a n g e
1 f h l i N t o o o s p a s l A i i t c e c a e c n c s u r - l P i i t- t o s a e a e n s c u c r c c -	3 7 5 1 2 2	2 7 5 0 2 2	% 1 2 % 0 %
1 f b d N o o e s l A i i t c e c a e c n c s u r - l P i i t- t o s a c e c a e c n c s u r -	2 3 4 9 2 , 8, 1 9 0 7 4, 5 8 5	2 3 2 8 6 , 8, 1 7 0 1 4, 5 8 5	1 % 1 % 0 %
d A i i m s s o n s ( ) A t i t i t c u e c a r e n p a e n -	9 6, 0 1 1 7	8 1 7 7, 1 5	% 1 1
O c c u p a n c y P t- t o s a c u e c a r e -	9 % 7	8 % 1
l h f ( d ) A t t v e r a g e e n g o s a y a y s A t c u e c a r e - P t- t o s a c u e c a r e -	6. 6 2 6 7.	6. 6 2 9 7

1Dec 31, 2012

Analyst Conference Call – Q1/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, April 30, 2013

Fresenius Helios: Sales Influence Hospital Acquisitions / Divestitures

A i i i t c q u s o n s	d A l i l n n u a z e s a e s
( l. G i D W a m p o p e c s m a r u x r d d b f l ), i i t e s e e o e c o s n g v r h N G t o e n e m a n r r r y	€ 4 2 7 m ~	l d d f h i M 3 1 2 0 1 2 t c o n s o a e a s o a c r ,
l f h H i W i ü t t o s p a p p e r r , h h h l N R i W i t t o r n e e s p a a -	€ 2 0 m ~	l d d f 2 0 3 i J 1 1 t c o n s o a e a s o a n u a r y ,

Fresenius Vamed:

Excellent Sales Growth, EBIT Fully in Line with Expectations

€ m	/ Q 3 1 1	/ Q 2 1 1	G h t r o w
b P j i t r o e c u s n e s s	8 2	7 7	6 %
b S i i e c e s n e s s r v u	1 0 2	7 2	4 2 %
T l l t o a s a e s	8 1 4	9 1 4	2 3 %
T l E B I T t o a	5	5	0 %
M i a r g n	2 % 7	3 % 4
1 O d i k t r e r n a e	9 3	1 0 4	% 1 1 -
1 O d b k l r e r a c o g	8 9 9	2 8 9 7	% 1

1Project business only

December 31, 2012

2012 adjusted for post-acute care clinic Zihlschlacht

Fresenius Group: Key Figures According to IFRS

€ m	/ Q 1 1 3 U S G A A P	/ Q 1 1 3 I F R S
S l a e s	8 9 0 4 ,	4 9 3 9 ,
1 E B I T	6 9 6	9 8 6
i N t t t e n e e s r	1 6 3 -	3 1 6 -
2 N i t e n c o m e	2 1 9	2 2 0
3 N i t e n c o m e	2 2 4	2 2 5
h f l O i C t p e r a n g a s o w	4 4 4	4 4 7
l h l B t t t a a n c e s e e o a	3 1 3 1 1 ,	3 1 4 9 1 ,

adjusted for one-time integration costs of Fenwal

2Net income attributable to shareholders of Fresenius SE & Co. KGaA

3Net income attributable to shareholders of Fresenius SE & Co. KGaA, adjusted

Analyst Conference Call – Q1/13 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, April 30, 2013

Special Items – 2012

Other financial result FY 2012:

The other financial result of -€35 million includes one-time costs for the offer to the shareholders of RHÖN-KLINIKUM AG, primarily relating to financing commitments.

Investment gain at Fresenius Medical Care FY 2012:

• Due to the acquisition of Liberty Dialysis Holdings, Inc. (Liberty), including its 51% stake in Renal Advantage Partners, LLC (RAI)
• Measuring the 49% equity interest in RAI held by Fresenius Medical Care at its fair value at the time of the Liberty acquisition
• Resulting in a non-taxable investment gain of US\$140 million at Fresenius Medical Care or €34 million at Fresenius SE & Co. KGaAin 2012 respectively; Q1 2012: €30 million

Share Information

Share key facts

Number of shares¹ 178,271,131 Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de

WKN / ISIN 578560 / DE0005785604

ADR key facts

Ticker symbol FSNUY Exchange OTC-market Depositary bank Deutsche Bank

Ratio 8 ADRs = 1 ordinary share ADR CUSIP / ISIN 35804M105 / US35804M1053 Structure Sponsored Level I ADR

1As of March 31, 2013

Financial Calendar

• 17.05.2013 Annual General Meeting, Frankfurt/Main
• 30.07.2013 Report on 1st half 2013
• 05.11.2013 Report on 1st 3rd quarter 2013

Contact

Birgit Grund SVP Investor Relations Fresenius SE & Co. KGaA Telephone: +49 6172 608-2485 e-mail: Birgit.Grund@fresenius.com

For further information and current news: http://www.fresenius.com