Fresenius SE & Co. KGaA — Call Transcript 2016

May 3, 2016

CONFERENCE CALL – Q1/2016 RESULTS

Frankfurt stock exchange (DAX30): FRE │ US ADR program (OTC): FSNUY │ www.fresenius.com/investors

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

		Q / 2 0 6 1 1	Q / 2 0 1 1 5
l S a e s		€ 6, 9 1 4 m	€ 6, 4 8 3 m
	h G t o c c r w	7 %	3 1 %
	G h l t t t r o w a c u a r a e s	% 7	2 % 4
1 E B I T		€ 9 5 9 m	€ 8 5 1 m
	h G t o c c r w	1 1 %	1 8 %
	G h l t t t r o w a c u a r a e s	3 % 1	3 2 %
1 N i t e o e n c m		€ 3 6 2 m	€ 2 9 2 m
	h G t r o w c c	2 3 %	1 6 %
	h l G t t t o a c a a e s r w u r	2 4 %	2 8 %

12015 before special items

FRESENIUS GROUP:

FINANCIAL RESULTS BY BUSINESS SEGMENT

	/ Q 1 2 0 1 6	G h t r o w Q 1 Y Y o
S l a e s E B I T	S \$ 2 0 U 4, 5 m \$ U S 5 4 0 m	6 % 7 %
l S a e s 1 E B I T	0 € 1, 4 7 m € 3 0 9 m	5 % 2 0 %
S l a e s 1 E B I T	€ 1, 4 3 5 m € 1 5 9 m	3 % 8 %
S l a e s E B I T	€ 2 1 8 m € 7 m	5 % 0 %

2015 before special items

For a detailed overview of special items please see the reconciliation table on slide 26.

Q1 BUSINESS SEGMENT UPDATE

Strong start into fiscal year 2016

Regional development

North America

• IV drug shortages continue; 20 Kabi-marketed products currently designated in shortage
• 3 product launches YTD
• Confirm roughly flat FY/16 organic sales growth expectation, based on tough comps starting Q2/16

Europe

• Lower contract manufacturing sales volume expected until later in 2016
• Confirm FY/16 outlook of low to mid single-digit organic sales growth

Emerging Markets

• China: 8% organic sales growth; fewer tenders completed than anticipated; continued double-digit volume growth still expected
• Asia Pacific ex China: Ongoing recovery, 5% organic sales growth
• Latin America/Africa standing out with 21% organic sales growth
• Fully on track to meet FY/16 outlook of mid to high single-digit organic sales growth

Q1 BUSINESS SEGMENT UPDATE

Hospital business fully on track

• 36%Organic sales (+3%) and EBIT growth (+8%) fully in line with Q1 expectations
• Acquisition of 500-bed municipal hospital in Velbert closed; consolidation as of May 1, 2016
• First university hospital (Munich) joining 'Wir für Gesundheit' network
• Fully on track to meet FY/16 outlook

Organic sales growth in line with expectations

• Project and service businesses contributing equally (both +6%) to organic sales growth
• Strong order intake of €237 m in Q1/16 (Q1/15: €192 m)
• Fully on track to meet FY/16 outlook

GROUP FINANCIALS Q1/2016 OUTLOOK 2016

FRESENIUS GROUP: PROFIT AND LOSS STATEMENT

€ m	Q / 2 0 6 1 1	Q / 2 0 1 1 5	l t a c a u t r a e s	t t c o n s a n t r a e s
S l a e s	6 9 1 4 ,	6 8 3 4 ,	% 7	% 7
1 E B I T	9 5 9	8 5 1	1 3 %	1 1 %
N i t t t e n e e s r	1 5 2 -	1 6 5 -	8 %	8 %
1 I t n c o m e a x e s	2 2 9 -	2 0 7 -	% 1 1 -	0 % 1 -
2 N i t e n c o m e	3 6 2	2 9 2	2 4 %	2 3 %

1 2015 before special items

2Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items

For a detailed overview of special items please see the reconciliation table on slide 26.

Growth Q1 YoY

FRESENIUS KABI: STRONG EBIT GROWTH

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

2015 before special items

For a detailed overview of special items please see the reconciliation table on slide 26.

Conference Call – Q1/2016 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, May 3, 2016

FRESENIUS HELIOS: STRONG EBIT MARGIN INCREASE

€ m	Q / 2 0 6 1 1	Q / 2 0 1 1 5	G h Q t 1 Y Y r o w o
l l T t o a s a e s	1, 4 3 5	1, 3 9 1	3 %
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 Ma in rg	9 1 5 1 1. 1 %	1 4 7 1 0. 6 %	8 % 5 0 bp s
/ A i i i D i i t t t c q u s o n s v e s u r e s ( l i da io / de l i da io 1 ) Ma in t t < co ns o n co ns o n y r rg	0 0. 0 %
l T t E B I T o a Ma in rg	9 1 5 1 1. 1 %	1 4 7 1 0. 6 %	8 % 5 0 bp s

2015 before special items

For a detailed overview of special items please see the reconciliation table on slide 26.

CASH FLOW DEVELOPMENT

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

1Before acquisitions and dividends

2Margin incl. FMC dividend

3Understated: 6.0% excluding €46 million of capex commitments from acquisitions

FRESENIUS GROUP:

2016 FINANCIAL OUTLOOK BY BUSINESS SEGMENT

i F r e s e n u s b i K a	l h S t a e s g r o w i o r g a n c E B I T t t c o n s a n c u r r e n c y	l l d i i i t o w s n g e g - h l f l t r o u g y a
i F e e r s n u s l i H e o s	l h S t a e s g r o w i o r g a n c E B I T	3 % 5 % – € 6 7 0 7 0 0 m –
i F e e r s n u s d V a m e	l h S t a e s g r o w i o r g a n c h E B I T t g r o w	5 % 1 0 % – 5 % 1 0 % –

FRESENIUS GROUP: 2016 FINANCIAL GUIDANCE

l h S t a e s g r o w t t c o n s a n c u r r e n c y	6 % 8 % ‒
1 h i N t t e n c o m e g o r w t t c o n s a n c u r r e n c y	8 % 1 2 % ‒

1 Net income attributable to shareholders of Fresenius SE&Co.KGaA; 2015 before special items

ATTACHMENTS

FRESENIUS GROUP:

OVERVIEW – CALCULATION OF NONCONTROLLING INTEREST

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

FRESENIUS GROUP: CASH FLOW

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

CASH FLOW DEVELOPMENT LTM

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

1 Before acquisitions and dividends

2 Margin incl. FMC dividend

3 Understated: 6.0% excluding €46 million of capex commitments from acquisitions

FRESENIUS GROUP: LEVERAGE RATIO

1Pro forma acquisitions; before special items

2Adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)

3Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before special items

4Before special items

52015 before special items

At annual average FX rates for both EBITDA and net debt

Conference Call – Q1/2016 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, May 3, 2016

FRESENIUS KABI:

STRONG ORGANIC SALES GROWTH

l l T t o a s a e s	0 1, 4 7	3 9 1, 4	0 % 1
d l / M i D i e c a e c e s v f h l T i T r a n s u s o n e c n o o g y	2 4 5	2 6 4	2 %
l l C i i N i i t t n c a u r o n	3 7 8	3 7 2	8 %
f i h I T n u s o n e r a p y	2 0 2	2 3 1	% 5
I V D r u g s	6 4 5	5 4 5	8 % 1
€ m	/ Q 1 2 0 1 6	/ Q 1 2 0 1 5	O i r g a n c h G t o r w

FRESENIUS KABI:

STRONG ORGANIC SALES GROWTH

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

FRESENIUS HELIOS:

ORGANIC SALES GROWTH FULLY IN LINE WITH EXPECTATION

€ m	Q 1 / 2 0 1 6	Q 1 / 2 0 1 5	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	1, 4 3 3	1, 3 9 1	3 %
A i i t i c q u s o n s ( l i da io 1 ) t < co ns o n y r	2	-	-
l l T t o a s a e s	1, 3 4 5	1, 3 9 1	3 %

FRESENIUS HELIOS: PERFORMANCE INDICATORS

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

1 December 31, 2015 2 German average (2014): 7.4

FRESENIUS HELIOS:

ACQUISITIONS / DIVESTITURES – CONSOLIDATION EFFECTS

i i i A t c q u s o n s	l i d l A n n u a z e s a e s
i k h l D e o z e n	€ 8 m ~	l i d d f i l 2 0 t A 1, 1 5 c o n s o a e a s o p r
l b / d b V N i t e e e e e g r r r	( ) € 6 9 2 0 1 5 m ~	l d d f i M 1, 2 0 1 6 t c o n s o a e a s o a y

FRESENIUS VAMED: STRONG ORDER INTAKE

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

¹Project business only

FRESENIUS GROUP: KEY FIGURES ACCORDING TO IFRS

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

1Net income attributable to shareholders of Fresenius SE & Co. KGaA

For a detailed overview of special items please see the reconciliation table on slide 26.

Conference Call – Q1/2016 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, May 3, 2016

RECONCILIATION ACCORDING TO U.S. GAAPQ1 2016 / Q1 2015

The Group's U.S. GAAP financial results as of March 31, 2016 do not include special items, whereas the U.S. GAAP financial results as of March 31, 2015 include special items. Net income attributable to shareholders of Fresenius SE & Co.KGaA was adjusted for these special items. The table below shows the special items and the reconciliation from net income (before special items) to earnings according to U.S. GAAP.

€ m	/ be for Q 1 20 15 e ia l it sp ec em s	f fic ien e cy p rog ram KA BI	int ion for rat sts eg co d R hö ire ac qu n ho ita ls sp	dis l g ain fro p os a s m tw o H EL IO S ho ita ls sp	Q 1 / 20 15 din ac co r g ( l. to U. S. GA AP inc ia l it ) sp ec em s
S l a e s	6, 8 3 4				6, 8 3 4
E B I T l I t t t n e r e s r e s u	8 5 1 -1 6 5	-1 0	2 -	3 4	8 7 3 -1 6 5
N i b f t t e n c o m e e o e a e s r x I t n c o m e a e s x	6 8 6 -2 0 7	0 -1 3	-2	3 4	0 8 7 -2 0 4
i N t e n c o m e l l N i i t t t o n c o n r o n g n e r e s	4 7 9 -1 8 7	-7	2 -	3 4	5 0 4 -1 8 7
i i b b l N t t t t e n c o m e a r u a e h h l d f i S & t F E o a e o e o e e s r r s r s n u s C K G A o. a	2 9 2	7 -	2 -	3 4	3 1 7

The special items are reported in the Group Corporate/Other segment.

SHARE INFORMATION

Share key facts

Number of shares¹ 545,810,836 Ticker symbol FRE Bloomberg symbol FRE GR Reuters symbol FREG.de

WKN / ISIN 578560 / DE0005785604

ADR key facts

Ticker symbol FSNUY Depositary bank Deutsche Bank

Ratio 4 ADRs = 1 ordinary share ADR CUSIP / ISIN 35804M105 / US35804M1053 Exchange OTCQX International Premier Structure Sponsored Level I ADR

1As of March 31, 2016

Conference Call – Q1/2016 Results, Fresenius SE & Co. KGaA, Investor Relations © Copyright, May 3, 2016

FINANCIAL CALENDAR 2016

13.05.2016 Annual General Meeting, Frankfurt/Main 02.08.2016 Report on 2nd quarter 2016 27.10.2016 Report on 3rd quarter 2016

Please note that these dates could be subject to change.

CONTACT

Investor Relations

Fresenius SE & Co. KGaA

phone: +49 6172 608-2485

e-mail: ir-fre@fresenius.com

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