Fresenius SE & Co. KGaA — Call Transcript 2019

Oct 29, 2019

Conference Call – Q3/19 Results

Bad Homburg, 29 October 2019

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.

Q3/19 Highlights

• Strong organic sales growth across all business segments
• Growth investments proceeding according to plan
• Fresenius Kabi: excellent growth in Emerging Markets partially offsets softer development in North America
• Fresenius Helios showing excellent organic sales growth across all regions
• Fresenius Vamed: integration of post-acute care business from Helios completed
• Fresenius Medical Care: record growth in home dialysis in North America
• Group guidance confirmed

Fresenius Kabi: Update

North America

• Increased competition for certain molecules
• The opioid market has not recovered as anticipated
• 31 Kabi-marketed IV drugs currently designated in shortage (vs. 36 at Q2/19)
• Low to mid-single-digit price erosion in our base product portfolio
• Product launches: with 12 YTD, on track to meet expectation of 15+ for the FY

Biosimilars

• Roll-out of Idacio® in additional 4 European countries in Q3/19 (9 in total)

Transfusion Medicine and Cell Therapies business

• Business remains important part of Fresenius Kabi
• Divisionalization paves the way for further profitable growth going forward

Fresenius Helios: Update

Helios Germany

Investment initiatives

• Employer of choice: Continued to attract meaningful number of nurses in Q3/19
• Vacant chief doctor positions now re-filled
• Good progress with transformation of MVZs ("outpatient centers") within new business line Outpatient Services

DRG inflator

• Ongoing favorable reimbursement environment
• 2020 DRG inflator set at 3.66%
• Final price increase will be lower as it is subject to negotiations at the state level and individual hospital discounts

Fresenius Helios: Update

Helios Spain

Expansion in Spain

• Opening of two new outpatient centers in the cities of Toledo and Algeciras
• Acquisition of plot in the metropolitan area of Barcelona to develop a new midsize hospital by 2022

Expansion in Latin America

• Acquisition of two additional hospitals in Colombia
  • ~€50 million of sales
  • ~300 beds
  • Expected closing in coming months

Financial Review Q3/19

Fresenius Group: Q3/19 Key Financials

€m	Q3/191	IFRS 16 effect	special items	Q3/19 reported	1,2 Δ YoY cc
Sales	8,877	-35	-	8,842	6%
EBIT	1,130	23	-24	1,129	-1%
Net interest	-124	-47	-1	-172	15%
Income taxes	-232	5	25	-202	-10%
Net income3	453	-8	-1	444	0%
Balance sheet total	61,092	5,667	-	66,759
Operating Cashflow	1,298	185	-	1,483

¹ Before special items, adjusted for IFRS 16 effect

² On a comparable basis: Q3/18 adjusted for divestitures of Care Coordination activities at FMC, before special items

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

For a detailed overview of special items and adjustments please see the reconciliation tables on slides 26-49.

Fresenius Group: Q3/19 Business Segment Growth

¹On a comparable basis: Q3/18 adjusted for divestitures of Care Coordination activities at FMC; Q3/19 adjusted for IFRS 16 effect.

All figures before special items

For a detailed overview of special items and adjustments please see the reconciliation tables on slides 26-49.

Fresenius Kabi: Q3/19 Regional Highlights (1/2)

North America

• -4% organic growth
• Increasingly intense competitive environment for certain molecules
• Further easing of shortage tailwinds
• FY/19 outlook change: Slight organic sales decline (before: Low single-digit organic sales growth)

Europe

• 4% organic growth
• Strong growth of enteral nutrition business
• Confirm FY/19 outlook: Low to mid-single-digit organic sales growth

Fresenius Kabi: Q3/19 Regional Highlights (2/2)

Emerging Markets

China:

• 18% organic sales growth
• Continued positive momentum

Asia-Pacific ex China:

• 19% organic sales growth

Latin America/Africa:

• 16% organic sales growth

Total Emerging Markets

Confirm FY/19 outlook: Clearly double-digit organic sales growth

Fresenius Kabi: Q3 & Q1-3/19 EBIT Growth

€m	Q3/19	Δ YoY cc	Q1-3/19	Δ YoY cc
North America Margin	225 36.3%	-8% -180 bps	703 38.7%	-2% 20 bps
Europe Margin	75 13.3%	-11% -230 bps	241 14.1%	-6% -150 bps
Asia-Pacific/Latin America/Africa	135	34%	352	24%
Margin	23.4%	330 bps	21.6%	200 bps
Corporate and Corporate R&D	-129	-3%	-379	-2%
Total EBIT1 Margin1	306 17.4%	1% -60 bps	917 17.8%	4% 20 bps

¹On a comparable basis: before special items and adjusted for IFRS 16 effects

Margin growth at actual rates

For a detailed overview of special items and adjustments please see the reconciliation tables on slides 26-49.

Fresenius Helios: Q3/19 Highlights

Helios Germany

• Strong organic sales growth of 5%; positive admissions development
• Sales growth supported by reclassification of nursing staff funding from other income to sales (low double-digit € million amount)
• EBIT impacted by ongoing investments in measures to counter regulatory headwinds

Helios Spain

• Healthy organic sales growth of 9%; decline in admissions during hot summer months not as pronounced as in prior year
• EBIT development impacted by costs for temporary workers

Sales

Fresenius Helios: Q3 & Q1-3/19 Key Financials

€m	Q3/19	Δ YoY	Q1-3/19	Δ YoY
Total sales	2,230	7%	6,890	2%/5%1
Thereof Helios Germany	1,474	5%	4,465	-1%/4%1
Thereof Helios Spain	757	12%	2,425	9%
Total EBIT2 Margin	183 8.2%	-10% -160 bps	723 10.5%	-7%/-5%1 -100 bps
Thereof Helios Germany Margin	130 8.8%	-9% -130 bps	433 9.7%	-11%/-9%1 -110 bps
Thereof Helios Spain Margin	56 7.4%	-5% -130 bps	300 12.4%	5% -40 bps
Thereof Corporate	-3	--	-10	--

¹ Adjusted for the post-acute care business transferred to Fresenius Vamed as of July 1, 2018

² Adjusted for IFRS 16 effect

Fresenius Vamed

• Strong Q3/19 with 17% organic sales growth
• Both, service business and project business contributed to strong growth in Q3/19

€m	Q3/19	Δ YoY	Q1-3/19	Δ YoY
Total sales Thereof organic sales	562	18% 17%	1,469	48% 24%1
Service business	349	11%	1,025	60% 29%1
Project business	213	32%	444	26%
Total EBIT2	34	10%	65	33% 0%1
Order intake3	240	114%	738	30%
Order backlog3			2,711	12%4

¹ Without German post-acute care business acquired from Fresenius Helios as of July 1, 2018

²Adjusted for IFRS 16 effect

³ Project business only

⁴ Versus December 31, 2018

Fresenius Group: Cash Flow

	Operating CF1		Capex (net)		Free Cash Flow1,2
€m	Q3/19	LTM Margin	Q3/19	LTM Margin	Q3/19	LTM Margin
	362	13.4%	-179	-10.0%	183	3.4%
	183	7.0%	-90	-4.7%	93	2.3%3
	27	3.2%	-10	-1.6%	17	1.6%
Corporate/Other	11	n.a.	-13	n.a.	-2	n.a.
Excl. FMC	583	9.5%4	-292	-6.9%	291	2.6%4
	1,298	10.4%	-576	-6.6%	722	3.8%

¹ Adjusted for IFRS 16 effect

² Before acquisitions and dividends

³ Understated: 2.6% excluding €27 million of capex commitments from acquisitions

⁴Margin incl. FMC dividend

Fresenius Group: 2019 Financial Outlook by Business Segment

	€m (except otherwise stated)		FY/18 Base	Q1-3/19 Actual1	FY/19e1	FY/191 New
	Sales growth (org)	6,544	4%	3% - 6%
	EBIT growth (cc)	1,1392	4%	3% - 6%
	Sales growth (org)	8,993	5%	2% - 5%
	EBIT growth	1,052	-7%	-5% to -2%
	Sales growth (org)	1,688	24%	~10%
		EBIT growth	110	33%	15% - 20%

¹ Excluding transaction-related expenses, revaluations of biosimilars contingent liabilities, adjusted for IFRS 16 effect

² Before special items

For a detailed overview of adjustments and special items please see the reconciliation tables on slides 26-49.

Fresenius Group: 2019 Financial Guidance

€m (except otherwise stated)		FY/18 Base1	Q1-3/19 Actual2	FY/19e2	FY/19e2 New
	Sales growth (cc)	33,009	6%	4% - 7%
	Net income3 growth (cc)	1,872	0%	~0%

¹ Before special items and after adjustments

² Excluding transaction-related expenses, revaluations of biosimilars contingent liabilities, gain related to divestitures of care coordination activities, expenses associated with the cost optimization program at FMC, including operating results of NxStage, adjusted for IFRS 16 effect

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

For a detailed overview of adjustments and special items please see the reconciliation tables on slides 26-49.

Attachments

Fresenius Group: Noncontrolling Interest

€m	Q1-3/19	Q1-3/18
Earnings before tax and noncontrolling interest	2,943	2,877
Taxes	-680	-629
Noncontrolling interest, thereof	-865	-880
Fresenius Medical Care net income not attributable to Fresenius SE & Co. KGaA (FY/18: ~69%)	-629	-654
Noncontrolling interest holders in Fresenius Medical Care	-177	-177
Noncontrolling interest holders in Fresenius Kabi (-€38 m), Fresenius Helios (-€10 m), Fresenius Vamed's 23% external ownership (-€10 m) and due to Corporate (-€1 m)	-59	-49
Net income attributable to Fresenius SE & Co. KGaA	1,398	1,368

All figures before special items

On a comparable basis: adjusted for IFRS16 effect; Q1-3/18 adjusted for divestitures of Care Coordination activities at FMC

For a detailed overview of special items please see the reconciliation tables on slides 26-49.

Fresenius Group: Cash Flow

€m	Q3/19	LTM Margin	Δ YoY
Operating Cash Flow1	1,298	10.4%	0%
Capex (net)	-576	-6.6%	-10%
Free Cash Flow1 (before acquisitions and dividends)	722	3.8%	-6%
Acquisitions (net)	-104	-6.7%	78%
Dividends	-71	-2.7%	-20%
Free Cash Flow1 (after acquisitions and dividends)	547	-5.6%	138%

¹ Adjusted for IFRS 16 effect

Fresenius Group: Leverage Ratio

Before special items; pro forma closed acquisitions/divestitures At LTM average FX rates for both EBITDA and net debt

¹ Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

² Including acquisition of NxStage; adjusted for IFRS 16 effects

³ Calculated at expected annual average exchange rates, for both net debt and EBITDA; including acquisition of NxStage; without potential unannounced acquisitions; adjusted for IFRS 16 effects (comparable to updated guidance from May 2, 2019)

Fresenius Kabi: Organic Sales Growth by Regions

€m	Q3/19	Δ YoY organic	Q1-3/19	Δ YoY organic
North America	619	-4%	1,815	-3%
Europe	564	4%	1,709	3%
Asia-Pacific/Latin America/Africa	578	17%	1,629	15%
Asia-Pacific	406	18%	1,121	15%
Latin America/Africa	172	16%	508	16%
Total sales	1,761	5%	5,153	4%

Fresenius Kabi: Organic Sales Growth by Product Segment

€m	Q3/19	Δ YoY organic	Q1-3/19	Δ YoY organic
IV Drugs	746	-2%	2,202	-1%
Infusion Therapy	208	7%	621	3%
Clinical Nutrition	492	10%	1,416	9%
Medical Devices/ Transfusion Technology	315	14%	914	11%
Total sales	1,761	5%	5,153	4%

Fresenius Helios: Key Metrics

	Q1-3/19	FY/18	Δ
No. of hospitals Helios Germany - Acute care hospitals	86 83	86 83	0% 0%
No. of hospitals Helios Spain (Hospitals)	50	47	6%
No. of beds Helios Germany - Acute care hospitals	28,934 28,407	29,329 28,802	-1% -1%
No. of beds Helios Spain (Hospitals)	7,126	7,019	2%
Admissions Helios Germany (acute care)	908,341	1,218,199
Admissions Helios Spain (including outpatients)	10,476,730	13,318,066

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Sales reported	8,842	8,192	8%	6%
Divestitures of Care Coordination activities at FMC	-	-7
IFRS 16 effect	35	-
Sales on a comparable basis	8,877	8,185	8%	6%
EBIT reported (after special items)	1,129	1,041	8%	6%
Transaction costs Akorn	0	6
Bridge Financing costs Akorn	-	0
Revaluations of biosimilars contingent liabilities	0	-
Gain related to divestitures of Care Coordination activities	-3	-10
Transaction costs NxStage	2	-
Expenses associated with the cost optimization program at FMC	25	-
Impact of FCPA related charge	-	75
EBIT (before special items)	1,153	1,112	4%	1%
Divestitures of Care Coordination activities at FMC	-	0
IFRS 16 effect	-23	-
EBIT on a comparable basis	1,130	1,112	2%	-1%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Net interest reported (after special items)	-172	-146	-18%	-15%
Bridge Financing costs Akorn	-	5
Revaluations of biosimilars contingent liabilities	1	-
Net interest (before special items)	-171	-141	-21%	-18%
Divestitures of Care Coordination activities at FMC	-	0
IFRS 16 effect	47	-
Net interest on a comparable basis	-124	-141	12%	15%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Income taxes reported (after special items)	-202	-196	-3%	-1%
Transaction costs Akorn	0	-1
Bridge Financing costs Akorn	-	-2
Revaluations of biosimilars contingent liabilities	0	-
Gain related to divestitures of Care Coordination activities	-17	-7
Transaction costs NxStage	-1	-
Expenses associated with the cost optimization program at FMC	-7	-
Income taxes (before special items)	-227	-206	-10%	-7%
Divestitures of Care Coordination activities at FMC	-	-1
IFRS 16 effect	-5	-
Income taxes on a comparable basis	-232	-207	-12%	-10%
Noncontrolling interest reported (after special items)	-311	-280	-11%	-7%
Gain related to divestitures of Care Coordination activities	14	12
Transaction costs NxStage	0	-
Expenses associated with the cost optimization program at FMC	-13	-
Impact of FCPA related charge	-	-52
Noncontrolling interest (before special items)	-310	-320	3%	7%
Divestitures of Care Coordination activities at FMC	-	0
IFRS 16 effect	-11	-
Noncontrolling interest on a comparable basis	-321	-320	0%	3%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Net income reported (after special items)	444	419	6%	4%
Transaction costs Akorn	0	5
Bridge Financing costs Akorn	-	3
Revaluations of biosimilars contingent liabilities	1	-
Gain related to divestitures of Care Coordination activities	-6	-5
Transaction costs NxStage	1	-
Expenses associated with the cost optimization program at FMC	5	-
Impact of FCPA related charge	-	23
Net income (before special items)	445	445	0%	-2%
Divestitures of Care Coordination activities at FMC	-	-1
IFRS 16 effect	8	-
Net income on a comparable basis	453	444	2%	0%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Sales reported	26,098	24,695	6%	3%
Divestitures of Care Coordination activities at FMC	-	-516
IFRS 16 effect	75	-
Sales on a comparable basis	26,173	24,179	8%	6%
EBIT reported (after special items)	3,362	4,020	-16%	-19%
Transaction costs Akorn	3	45
Bridge Financing costs Akorn	-	1
Revaluations of biosimilars contingent liabilities	-4	-
Gain related to divestitures of Care Coordination activities	-14	-830
Transaction costs NxStage	22	-
Expenses associated with the cost optimization program at FMC	32	-
Impact of FCPA related charge	-	75
EBIT (before special items)	3,401	3,311	3%	0%
Divestitures of Care Coordination activities at FMC	-	-14
IFRS 16 effect	-79	-
EBIT on a comparable basis	3,322	3,297	1%	-2%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Net interest reported (after special items)	-535	-453	-18%	-15%
Bridge Financing costs Akorn	-	12
Revaluations of biosimilars contingent liabilities	3	-
Net interest (before special items)	-532	-441	-21%	-17%
Divestitures of Care Coordination activities at FMC	-	21
IFRS 16 effect	153	-
Net interest on a comparable basis	-379	-420	10%	12%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Income taxes reported (after special items)	-632	-754	16%	19%
Transaction costs Akorn	0	-9
Bridge Financing costs Akorn	-	-4
Revaluations of biosimilars contingent liabilities	0	-
Gain related to divestitures of Care Coordination activities	-15	140
Transaction costs NxStage	-6	-
Expenses associated with the cost optimization program at FMC	-9	-
Income taxes (before special items)	-662	-627	-6%	-2%
Divestitures of Care Coordination activities at FMC	-	-2
IFRS 16 effect	-18	-
Income taxes on a comparable basis	-680	-629	-8%	-5%
Noncontrolling interest reported (after special items)	-827	-1,302	36%	39%
Gain related to divestitures of Care Coordination activities	20	478
Transaction costs NxStage	-11	-
Expenses associated with the cost optimization program at FMC	-16	-
Impact of FCPA related charge	-	-52
Noncontrolling interest (before special items)	-834	-876	5%	9%
Divestitures of Care Coordination activities at FMC	-	-4
IFRS 16 effect	-31	-
Noncontrolling interest on a comparable basis	-865	-880	2%	6%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Net income reported (after special items)	1,368	1,511	-9%	-12%
Transaction costs Akorn	3	36
Bridge Financing costs Akorn	-	9
Revaluations of biosimilars contingent liabilities	-1	-
Gain related to divestitures of Care Coordination activities	-9	-212
Transaction costs NxStage	5	-
Expenses associated with the cost optimization program at FMC	7	-
Impact of FCPA related charge	-	23
Net income (before special items)	1,373	1,367	0%	-2%
Divestitures of Care Coordination activities at FMC	-	1
IFRS 16 effect	25	-
Net income on a comparable basis	1,398	1,368	2%	0%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Sales reported	4,419	4,058	9%	6%
Divestitures of Care Coordination activities	-	-7
IFRS 16 effect	35	-
NxStage operations	-79	-
Sales adjusted	4,375	4,051	8%	5%
EBIT reported	595	527	13%	9%
Gain related to divestitures of Care Coordination activities	-2	-10
Divestitures of Care Coordination activities	-	0
IFRS 16 effect	-21	-
NxStage operations	0	-
Transaction costs NxStage	2	-
Expenses associated with the cost optimization program	25	-
Impact of FCPA related charge	-	75
EBIT adjusted	599	592	1%	-3%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Net income reported	333	285	17%	12%
Gain related to divestitures of Care Coordination activities	-20	-17
Divestitures of Care Coordination activities	-	0
IFRS 16 effect	16	-
NxStage operations	15	-
Transaction costs NxStage	1	-
Expenses associated with the cost optimization program	18	-
Impact of FCPA related charge	-	75
Net income adjusted	363	343	6%	2%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Sales reported	12,897	12,247	5%	1%
Divestitures of Care Coordination activities	-	-516
IFRS 16 effect	75	-
NxStage operations	-188	-
Sales adjusted	12,784	11,731	9%	5%
EBIT reported	1,653	2,425	-32%	-35%
Gain related to divestitures of Care Coordination activities	-14	-830
Divestitures of Care Coordination activities	-	-14
IFRS 16 effect	-68	-
NxStage operations	16	-
Transaction costs NxStage	22	-
Expenses associated with the cost optimization program	32	-
Impact of FCPA related charge	-	75
EBIT adjusted	1,641	1,656	-1%	-5%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Net income reported	857	1,557	-45%	-47%
Gain related to divestitures of Care Coordination activities	-29	-690
Divestitures of Care Coordination activities	-	4
IFRS 16 effect	45	-
NxStage operations	49	-
Transaction costs NxStage	16	-
Expenses associated with the cost optimization program	23	-
Impact of FCPA related charge	-	75
Net income adjusted	961	946	2%	-3%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Sales reported	4,419	4,058	9%	6%
Divestitures of Care Coordination activities	-	-7
IFRS 16 effect	35	-
Sales on a comparable basis	4,454	4,051	10%	7%
EBIT reported (after special items)	595	527	13%	9%
Gain related to divestitures of Care Coordination activities	-3	-10
Transaction costs NxStage	2	-
Expenses associated with the cost optimization program	25	-
Impact of FCPA related charge	-	75
EBIT (before special items)	619	592	5%	1%
Divestitures of Care Coordination activities	-	0
IFRS 16 effect	-20	-
EBIT on a comparable basis	599	592	1%	-3%

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Net income reported (after special items)	332	284	17%	12%
Gain related to divestitures of Care Coordination activities	-20	-16
Transaction costs NxStage	1	-
Expenses associated with the cost optimization program	18	-
Impact of FCPA related charge	-	75
Net income (before special items)	331	343	-3%	-7%
Divestitures of Care Coordination activities	-	-1
IFRS 16 effect	17	-
Net income on a comparable basis	348	342	2%	-2%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Sales reported	12,897	12,247	5%	1%
Divestitures of Care Coordination activities	-	-516
IFRS 16 effect	75	-
Sales on a comparable basis	12,972	11,731	11%	7%
EBIT reported (after special items)	1,653	2,425	-32%	-35%
Gain related to divestitures of Care Coordination activities	-14	-830
Transaction costs NxStage	22	-
Expenses associated with the cost optimization program	32	-
Impact of FCPA related charge	-	75
EBIT (before special items)	1,693	1,670	1%	-3%
Divestitures of Care Coordination activities	-	-14
IFRS 16 effect	-68	-
EBIT on a comparable basis	1,625	1,656	-2%	-6%

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Net income reported (after special items)	857	1,557	-45%	-47%
Gain related to divestitures of Care Coordination activities	-29	-690
Transaction costs NxStage	16	-
Expenses associated with the cost optimization program	23	-
Impact of FCPA related charge	-	75
Net income (before special items)	867	942	-8%	-12%
Divestitures of Care Coordination activities	-	4
IFRS 16 effect	45	-
Net income on a comparable basis	912	946	-4%	-8%

Reconciliation Fresenius Kabi

€m	Q3/19	Q3/18	growth rate	growth rate (cc)
Sales reported	1,761	1,650	7%	5%
Transaction costs Akorn	0	6
Revaluations of biosimilars contingent liabilities	0	-
EBIT (before special items)	307	297	3%	1%
IFRS 16 effect	-1	-
EBIT on a comparable basis	306	297	3%	1%
Transaction costs Akorn	0	5
Revaluations of biosimilars contingent liabilities	1	-
Net income (before special items)	203	199	2%	-1%
IFRS 16 effect	1	-
Net income on a comparable basis	204	199	3%	0%

Reconciliation Fresenius Kabi

€m	Q1-3/19	Q1-3/18	growth rate	growth rate (cc)
Sales reported	5,153	4,857	6%	5%
Transaction costs Akorn	3	45
Revaluations of biosimilars contingent liabilities	-4	-
EBIT (before special items)	920	854	8%	4%
IFRS 16 effect	-3	-
EBIT on a comparable basis	917	854	7%	4%
Transaction costs Akorn	3	36
Revaluations of biosimilars contingent liabilities	-1	-
Net income (before special items)	614	554	11%	7%
IFRS 16 effect	4	-
Net income on a comparable basis	618	554	12%	8%

Reconciliation Fresenius Helios

€m	Q3/19	Q3/18	growth rate
Sales reported	2,230	2,088	7%
German post-acute care business transferred from Fresenius Helios to Fresenius Vamed	-	0
Sales adjusted for German post-acute care business	2,230	2,088	7%
EBIT reported	187	204	-8%
IFRS 16 effect	-4	-
EBIT adjusted for IFRS 16 effect	183	204	-10%
German post-acute care business transferred from Fresenius Helios to Fresenius Vamed	-	0
EBIT adjusted for IFRS 16 effect and German post-acute care business	183	204	-10%

Reconciliation Fresenius Helios

€m	Q1-3/19	Q1-3/18	growth rate
Sales reported	6,890	6,762	2%
German post-acute care business transferred from Fresenius Helios to Fresenius Vamed	-	-226
Sales adjusted for German post-acute care business	6,890	6,536	5%
EBIT reported	731	775	-6%
IFRS 16 effect	-8	-
EBIT adjusted for IFRS 16 effect	723	775	-7%
German post-acute care business transferred from Fresenius Helios to Fresenius Vamed	-	-10
EBIT adjusted for IFRS 16 effect and German post-acute care business	723	765	-5%

Reconciliation Fresenius Vamed

€m	Q3/19	Q3/18	growth rate
Sales reported	562	476	18%
German post-acute care business acquired from Fresenius Helios	-121	-117
Sales adjusted for German post-acute care business	441	359	23%
EBIT reported	33	31	6%
IFRS 16 effect	1	-
EBIT adjusted for IFRS 16 effect	34	31	10%
German post-acute care business acquired from Fresenius Helios	-15	-15
EBIT adjusted for IFRS 16 effect and German post-acute care business	19	16	19%

Reconciliation Fresenius Vamed

€m	Q1-3/19	Q1-3/18	growth rate
Sales reported	1,469	991	48%
German post-acute care business acquired from Fresenius Helios	-350	-117
Sales adjusted for German post-acute care business	1,119	874	28%
EBIT reported	67	49	37%
IFRS 16 effect	-2	-
EBIT adjusted for IFRS 16 effect	65	49	33%
German post-acute care business acquired from Fresenius Helios	-31	-15
EBIT adjusted for IFRS 16 effect and German post-acute care business	34	34	0%

IFRS 16 effect on Group P&L

€m	Q3/19 before special items adjusted for IFRS 16 effect	IFRS 16 effect	Q3/19 before special items according to IFRS 16	Q1-3/19 before special items adjusted for IFRS 16 effect	IFRS 16 effect	Q1-3/19 before special items according to IFRS 16
Sales	8,877	-35	8,842	26,173	-75	26,098
EBITDA	1,526	237	1,763	4,468	699	5,167
Depreciation and amortization	-396	-214	-610	-1,146	-620	-1,766
EBIT	1,130	23	1,153	3,322	79	3,401
Net interest	-124	-47	-171	-379	-153	-532
Income taxes	-232	5	-227	-680	18	-662
Noncontrolling interest	-321	11	-310	-865	31	-834
Net income1	453	-8	445	1,398	-25	1,373

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

IFRS 16 effect on Group Balance Sheet and Cash Flow

Balance Sheet

€m	Sep 30, 2019 adjusted for IFRS 16 effect	IFRS 16 effect	Sep 30, 2019 according to IFRS 16
Right-of-use-assets	1901	5,667	5,857
Lease liabilities	4142	5,899	6,313
Equity	26,928	-232	26,696
Total assets	61,092	5,667	66,759

Cash Flow

€m	Q3/19 adjusted for IFRS 16 effect	IFRS 16 effect	Q3/19 according to IFRS 16	Q1-3/19 adjusted for IFRS 16 effect	IFRS 16 effect	Q1-3/19 according to IFRS 16
Operating cash flow	1,298	185	1,483	2,439	538	2,977
Cash flow before acquisitions and dividends	722	185	907	850	538	1,388
Free cash flow	547	185	732	-2,172	538	-1,634
Cash provided by/used for financing activities	-461	-185	-646	995	-538	457

¹Reclassification from machinery, equipment and rental equipment under capital leases as of December 31, 2018

²Reclassifications from capital lease obligations and other liabilities as of December 31, 2018

Financial Calendar / Contact

Financial Calendar

20 February 2020	Results FY/19
06 May 2020	Results Q1/20
20 May 2020	Annual General Meeting
30 July 2020	Results Q2/20
29 October 2020	Results Q3/20

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

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