Fresenius SE & Co. KGaA

Investor Presentation • May 6, 2020

Conference Call – Q1/20 Results

Bad Homburg, 06 May 2020

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.

Figures for 2020 and 2019 according to IFRS 16 (except otherwise stated).

Current status of Fresenius Group under COVID-19

• Further enhanced safety measures to protect patients and staff
• Decisive efforts to combat pandemic in our hospitals
• Immediate focus on essential drugs & devices for COVID-19 patients
• Commitment to price stability during pandemic
• Solid start into 2020
• Varying phasing, direction and magnitude of COVID-19 effects across business segments
• Too early to quantify the total financial impact for FY/20
• 2020 guidance (excluding COVID-19 effects) maintained
• Part of critical infrastructure
• Healthy diversification
• High degree of vertical integration
• Sustainable access to financial markets liquidity and capital

Fresenius Kabi: Headwinds in China for most of Q1, COVID-19 related extra demand elsewhere from late in Q1

Fresenius Kabi: Excellent crisis management ensures continued operations in our global plants

• Manufacturing at all plants has been ongoing despite the COVID-19 pandemic
• In particular the API plants continued uninterrupted operations
• Outstanding employee engagement to maintain the production of our vital products
• Early and proactive implementation of contingency measures to safeguard production:

Secured stocks of raw material

1 L

Expanded logistics capacities

Immediate implementation of additional hygiene measures

Organization of temporary accommodation opportunities close to the plants

Early collaboration with authorities to ensure continued operations

API - Active Pharmaceutical Ingredients

Fresenius Helios: Very different dynamics of the COVID-19 pandemic in Germany and Spain

Actual daily COVID-19 inpatients in our hospitals Thereof in ICU facilities (as % of actual daily inpatients)

Notes: Figures for Helios Spain include high-likelihood suspected COVID-19 inpatient cases under investigation. On a cumulative basis, Helios Spain treated about 15,000 COVID-19 inpatients, of which about 1,400 (9%) were treated in ICU. The daily ICU percentages in the above chart are higher due to longer avg. length-of-stay of COVID-19 patients in ICUs.

Helios Germany: Law to ease financial burden on hospitals likely to offset large part of sales losses and cost increases

Helios Spain: Significant contribution to combat COVID-19; some uncertainties with regards to reimbursement remain

	Q1/20: Status quo		Remainder of FY/20: Unpredictable development
Private hospitals	Good organic growth	Mandatory postponement of elective surgeries	Opportunity for catch-up effects
		Incremental beds (ICU & acute) and ventilators
			Incremental expenses for protective equipment, medical supplies and additional personnel
			Coverage of incremental expenses and foregone revenues yet to be discussed with payors; expectation to receive fair compensation for extraordinary contribution to fight pandemic
PPPs	Good organic growth	Mandated postponement of elective surgeries	Opportunity for catch-up effects
		Per-capita reimbursement for 3 Madrid PPPs unchanged; 1 PPP activity-based
		Constrained opportunity to generate 'Free Choice' revenues
		Incremental beds (ICU & acute) and ventilators
			Incremental expenses for protective equipment, medical supplies and additional personnel
ORPs	Good organic growth	Cancellation of medical check-ups	Opportunity for catch-up effects vs likely higher unemployment
		Strengthening relationships with key clients	Additional opportunities in "safe workplace" solutions, minimizing infection risk
	Jan Feb	March Q2/20	H2/20

Fresenius Vamed: Postponements/cancellations of orders in project business, restraints in service business due to COVID-19

	Q1/20: Status quo	Remainder of	FY/20: Unpredictable development
Project business	Good organic growth	Delays and cancellations of project orders	Opportunity for catch-up effects
		Execution delays/projects on hold due to travel/quarantine restrictions and supply chain restraints	Opportunity for catch-up effects
		SG&A savings
Service business	Good organic growth	Less demand for post-acute (rehabilitation) treatments given mandated postponement of elective surgeries	Partial reimbursement
Operational management		Health authority induced closures of selected post-acute (rehabilitation) facilities	expected for post-acute (rehabilitation) facilities in Austria, Switzerland and the
		German decree to ease financial burden on post acute (rehabilitation) facilities offsets part of sales losses/cost impacts	Czech Republic
		Health authority induced closure of all medical wellness resorts
		Incremental expenses for protective equipment and medical supplies
Technical services	Good organic growth	Technical maintenance not meaningfully impacted
		Less demand for instrument sterilization given mandated postponement of elective surgeries	Opportunity for catch-up effects
	Jan Feb	March Q2/20	H2/20

Q1/20 – Operating highlights ex COVID-19

Fresenius Kabi

• Biologics License Application for biosimilar of Pegfilgrastim submitted to FDA and EMA
• Significant tender wins for biosimilar Idacio® in major European markets
• 2 product launches in North America on track to meet expectation of 15+ for the FY
• Excellent pipeline: 56 new product files pending with FDA as of March 31
• Court decision on claims of damages against Akorn expected soon
• Transfusion Medicine and Cell Therapies Business with dynamic growth in Q1/20

Fresenius Vamed

• Intensified cooperation with Helios in the fields of high-end technical services, construction and project control

Fresenius Helios

• Helios' digital company Curalie acquired DGG Group, creating a service provider with a full digital feature set to treat chronically ill patients
• Centro Médico Imbanaco in Colombia successful closing of transaction; consolidation from March 1 onwards

Fresenius Group

"To offer better and affordable medicine to ever more people is our mission – a special responsibility that we will live up to also during these testing times."

Stephan Sturm

Chairman of the Management Board

Financial Review Q1/20

Fresenius Group: Q1/20 Profit and Loss Statement

Sales	EBIT
+7%	-2%
Q1/20: €9,135 m	Q1/20: €1,125 m	Net Income
Income Tax Rate	Net Interest	+1%
22.6%	-€174 m	Q1/20: €465 m
Q1/19: 23.3%	Q1/19: -€181 m

All growth rates in constant currency (cc) Before special items Net income attributable to shareholders of Fresenius SE & Co. KGaA

Fresenius Group: Q1/20 Business Segment Growth

All figures before special items

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Significant investments into future growth

CapEx ratio (Capex / sales)

• Historical range 5% to 6%
• 2018 and 2019 marked by group-wide significant investments into future growth
• Certain flexibility with regard to planned investments for 2020, pending on magnitude of COVID-19 impact
• Return to historical range within the next years

Increased supply of essential drugs

during COVID-19 pandemic

• Future-oriented investments into both automation and capacity are now enabling treatment for more patients worldwide

Hospitals well-prepared to cope with COVID-19 pandemic

• Well invested and equipped infrastructure with well-trained nurses
• Optimized processes and workflows

CapEx, gross € in millions

Fresenius Group: Cash Flow

	Operating CF		Capex (net)		Free Cash Flow1
€m	Q1/2020	LTM Margin	Q1/2020	LTM Margin	Q1/2020	LTM Margin
	584	17.2%	-280	-6.7%	304	10.5%
	174	15.1%	-178	-10.8%	-4	4.3%
	145	8.3%	-89	-5.1%	56	3.2%
	-20	-1.0%	-22	-3.0%	-42	-4.0%
Corporate/Other	-5	n.a.	-4	n.a.	-9	n.a.
Excl. FMC	294	10.3%2	-293	-7.4%	1	2.9%2
	878	13.5%	-573	-7.1%	305	6.4%

¹ Before acquisitions and dividends

² Margin incl. FMC dividend [€110 million]

Fresenius Group: Strong financial position

• Issuance of a total of €1.5 billion bonds in January and April 2020
• Financial cushion increased by >€1.5 billion since end of March 2020

Attachments

Fresenius Group: FY/20 Financial Outlook by Business Segment (excluding COVID-19 effects)

€m (except otherwise stated)			FY/19 Base1	FY/20e2
		Sales growth (org)	6,919	3% - 6%
		EBIT growth (cc)	1,205	-4% to 0%
		Sales growth (org)	9,234	3% - 6%
		EBIT growth (cc)	1,025	3% - 7%
		Sales growth (org)	2,206	4% - 7%
		EBIT growth (cc)	134	5% - 9%

¹ Before special items and including IFRS 16 effects

² Before special items

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: FY/20 Financial Guidance (excluding COVID-19 effects)

€m (except otherwise stated)		Base1 FY/19	FY/202
Sales growth (cc)		35,409	4% - 7%
	Net income3 growth (cc)	1,879	1% - 5%

¹ Before special items, including IFRS 16 effects, including NxStage operations 2 Before special items

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

For a detailed overview of special items please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Kabi: Q1/20 Organic Sales Growth by Regions

Total sales	1,789	6%
Emerging Markets	489	1%
Europe	631	10%
North America	669	5%
€m	Q1/20	Δ YoY organic

Fresenius Kabi: Q1/20 EBIT Growth

€m	Q1/20	Δ YoY cc
North America Margin	257 38.4%	2% -90 bps
Europe	104	21%
Margin	16.5%	+130 bps
Emerging Markets	71	-31%
Margin	14.5%	-610 bps
Corporate and Corporate R&D	-143	-6%
Total EBIT	289	-5%
Margin	16.2%	-170 bps

All figures before special items

Margin growth at actual rates

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Helios: Q1/20 Key Financials

€m	Q1/20	Δ YoY
Total sales	2,466	5%1
Thereof Helios Germany	1,603	8%1
Thereof Helios Spain	863	1%1
Total EBIT Margin	274 11.1%	2% -50 bps
Thereof Helios Germany Margin	165 10.3%	11% +30 bps
Thereof Helios Spain Margin	112 13.0%	-7% -160 bps
Thereof Corporate	-3	--

¹ Organic growth

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Vamed

• Both project and service business contributing to organic sales growth of 10% in Q1
• Post-acute care services impacted by COVID-19 pandemic due to postponement of elective surgeries and health authority issued closures of rehabilitation clinics; technical services not significantly impacted by COVID-19
• Further global delays and postponement of project business orders and project business execution expected due to COVID-19

€m	Q1/20	Δ YoY
Total sales Thereof organic sales	499	13% 10%
Project business	142	31%
Service business	357	8%
Total EBIT	14	17%
Order intake1	124	-68%
Order backlog1	2,846	-1%2

¹ Project business only ² Versus December 31, 2019

Fresenius Group: Calculation of Noncontrolling Interest

€m	Q1/20	Q1/19
Earnings before tax and noncontrolling interest	951	949
Taxes	-215	-221
Noncontrolling interest, thereof	-271	-271
Fresenius Medical Care net income not attributable to Fresenius (Q1/20: ~68%)	-194	-197
Noncontrolling interest holders in Fresenius Medical Care	-68	-57
Noncontrolling interest holders in Fresenius Kabi (-€6 m), Fresenius Helios (-€2 m), Fresenius Vamed (-€0 m) and due to Fresenius Vamed's 23% external ownership (-€1 m)	-9	-17
Net income attributable to Fresenius SE & Co. KGaA	465	457

Before special items

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Group: Cash Flow

€m	Q1/20	LTM Margin	Δ YoY
Operating Cash Flow	878	13.5%	--
Capex (net)	-573	-7.1%	-25%
Free Cash Flow	305	6.4%	--
(before acquisitions and dividends)
Acquisitions (net)	-287
Dividends	-58
Free Cash Flow (after acquisitions and dividends)	-40	1.5%	98%

Fresenius Group: Q1/20 Key Financials

€m	Q1/201	special items	Q1/20 reported	YoY cc1 Δ
Sales	9,135	-	9,135	7%
EBIT	1,125	-	1,125	-2%
Net interest	-174	-8	-182	4%
Income taxes	-215	2	-213	4%
Net income2	465	-6	459	1%

¹ Before special items

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

For a detailed overview of special items and adjustments please see the reconciliation tables provided on our website https://www.fresenius.com/results-center.

Fresenius Kabi: Q1/20 Organic Sales Growth by Product Segment

Total sales	1,789	6%
Transfusion Technology
Medical Devices/	333	13%
Clinical Nutrition	461	4%
Infusion Therapy	199	-1%
IV Drugs	796	6%
€m	Q1/20	Δ YoY organic

Fresenius Helios: Key Metrics

	Q1/20	FY/19	Δ
No. of hospitals Germany - Acute care hospitals	86 83	86 83	0% 0%
No. of hospitals Spain (Hospitals)	52	51	2%
No. of beds Germany - Acute care hospitals	28,907 28,380	28,907 28,380	0% 0%
No. of beds Spain (Hospitals)	7,745	7,288	6%
Admissions Germany (acute care)	297,470	1,206,654
Admissions Spain (including outpatients)	3,784,313	15,396,051

Fresenius Group: Proven Track Record of Deleveraging

Net Debt/EBITDA1

¹ At actual FX rates from 2001 to 2010 and at average FX rates from 2011 onwards, for both Net Debt and EBITDA; before special items; pro forma closed acquisitions/divestitures ² Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG

³ 2001-2018/19 excluding IFRS 16

⁴ Including IFRS 16

Fresenius Group: Major Long Term Debt Maturities – March 31, 2020 Pro Forma1,2

• 2020/21: Excluding Commercial Paper (FSE ~1.0bn, FMC ~0.9bn)

• 2022: RCF Capacity: ~€1.6 bn FSE, ~€1.4 bn FMC // Term Loan: ~€0.9 bn FSE, ~€1.2 bn FMC

¹ Based on utilization of major financing instruments

2 Incl. EUR 750m 2020 – 2027 Bond, issued on April 8, 2020

Financial Calendar / Contact

Financial Calendar

30 July	Results
2020	Q2/20
29 October	Results
2020	Q3/20

Please note that these dates could be subject to change.

Annual General Meeting

Due to the coronavirus pandemic, the AGM scheduled for 20 May 2020 has been postponed. A new date within the current financial year will be set as soon as the conditions for reliable planning and safe execution of the AGM are once again in place.

Contact

Investor Relations & Sustainability 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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