Presentation to Credit Investors August 2018 Frankfurt stock exchange: FRE US ADR program: 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. General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 2
A Global Leader in Health Care Products and Services ~ 33.9 bn in Sales 3.0 bn net income 1 (as of Dec. 31, 2017) Leading market positions Long-term opportunities in growing, non-cyclical markets Global presence in 100+ countries Diversified revenue base with four strong business segments Strong financial performance and cash flow generation 1 Net income incl. attributable to non-controlling interest General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 3
Strong and Balanced Health Care Portfolio Ownership: ~31% Ownership: 100% Ownership: 100% Ownership: 77% Dialysis Products Health Care Services Hospital Supplies Hospital Operation Projects and Services for Hospitals Dialysis services Hemodialysis products Peritoneal dialysis products Care coordination IV drugs Biosimilars Clinical nutrition Infusion therapy Medical devices/ Transfusion technology Acute care Outpatient services Post-acute care Project development & Planning Turnkey construction Maintenance & Technical and total operational management Sales 2017: 17.8 bn Sales 2017: 6.4 bn Sales 2017: 8.7 bn Sales 2017: 1.2 bn General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 4
Fresenius Group: Global Sales Base in Growing, Non-Cyclical Markets 2017 Sales by Region Sales in bn Latin America 4% Asia-Pacific 9% Africa 1% 13% CAGR 28.0 29.5 33.9 33.9 bn North America 45% 19.5 20.5 23.5 Europe 41% 16.5 2011 2012 2013 2014 2015 2016 2017 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 5
Fresenius Group: Strong Track Record of Organic Sales Growth in All Business Segments Fresenius Group Business Segments 5% CAGR 12% 7% 4% 6% 4% 4% 6% 6% 6% 6% 2% 5% 5% 5% 6% 7% 7% 9% 9% 5% 4% 8% 5% 7% '10 '11 '12 '13 '14 '15 '16 '17 '10 '11 '12 '13 '14 '15 '16 '17 '10 '11 '12 '13 '14 '15 '16 '17 15% 13% 5% 4% 5% 3% 4% 3% 4% 4% 4% 5% 6% 5% 6% 1 Due to project delays in Russia and Ukraine '10 '11 '12 '13 '14 '15 '16 '17 0% '10 '11 '12 '13 '14 '15 '16 '17 1 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 6
Fresenius Group: Strong Track Record of EBITDA Generation 2017 EBITDA by Business Segment EBITDA 1 in bn 23% 6.3 bn 1% 11% CAGR 3.9 3.9 4.1 5.1 5.5 6.3 3.3 52% 24% 2011 2012 2013 2014 2015 2016 2017 1 Before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 7
Fresenius SE: Earnings-Linked Dividend Policy 2017 Pay-out Ratio: 23% Dividend Policy 0.62 0.75 0.55 Dividend growth aligned to EPS 1 growth Pay-out Ratio 0.37 0.42 0.44 Pay-out Ratio: 20% to 25% per share 0.22 0.23 0.25 0.29 0.32 Dividend distribution ( m) 25% 25% 24% 21% 20% 21% 21% 22% 21% 22% 23% 0.02 103 114 122 140 155 196 225 238 300 343 416 '93 07 08 09 10 11 12 13 14 15 16 17 1 Before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 8
Global Health Care Trends Strong Growth Fundamentals 60+ World population age 60+ will reach >2 bn by 2050 1 Increasing health expenditure per capita (2014 vs. 1999 - USA US$9,403 (+108%), China: US$420 (+977%), India: US$75 (+317%) 2 1/3 52m By 2022, one third of all global health expenditure will occur in Emerging Economies 3 Deaths due to Chronic Diseases are projected to increase from 38 million in 2012 to 52 million by 2030 4 1 WHO: 10 facts on aging and the life course 2 World Bank: Health expenditure per capita 3 World Economic Forum: Health Systems Leapfrogging in Emerging Economies Project Paper (2014) 4 WHO: Global status report on non communicable diseases General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 9
Fresenius Medical Care: Global Dialysis Market Leader The world s leading provider of dialysis products and services treating more than 325,000 patients 1 in ~3,800 clinics 1 Provide highest standard of product quality and patient care Dialysis products Dialysis services Market Dynamics Global Dialysis Market 2017: ~ 70 bn ~6% patient growth p.a. Growth Drivers: Aging population, increasing incidence of diabetes and high blood pressure, treatment quality improvements Complete therapy offerings Expansion in Care Coordination and global dialysis service opportunities; enter new geographies International 28% Sales 2017: 17.8 bn North America 72% 1 As of June 30, 2018 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 10
Fresenius Medical Care: Strong Track Record of Growth Sales in million EBIT 1 in million CAGR 14% CAGR 15% 15,455 16,570 17,784 2,129 2,409 2,562 12,145 1,693 '14 '15 '16 '17 '14 '15 '16 '17 1 Before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 11
Fresenius Kabi: A Leading Global Hospital Supplier Comprehensive product portfolio for critically and chronically ill patients Strong Emerging Markets presence Leading market positions in four product segments Generic IV Drugs Market Dynamics Global Addressable Market 2017: ~ 81 bn Growth Drivers: Patent expirations, rising demand for health care services, higher health care spending in Emerging Markets Clinical Nutrition Infusion Therapy Medical Devices / Transfusion Technology Focus on organic growth through geographic product rollouts and new product launches Development of biosimilars with a focus on oncology and autoimmune diseases Emerging Markets 29% North America 36% Sales 2017: 6.4 bn Europe 35% General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 12
Fresenius Kabi: Impressive Growth Sales in million EBIT 1 in million CAGR 7% CAGR 10% 5,146 5,950 6,007 6,358 876 1,197 1,171 1,177 '14 '15 '16 '17 '14 '15 '16 '17 1 Before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 13
Fresenius Helios: Europe s Largest Private Hospital Operator Helios Germany ~6% 1 share in German acute care hospital market Organic growth based on growing number of admissions and reimbursement rate increases Ranks as quality leader in the German hospital sector: defined quality targets, publication of medical treatment results, peer review processes Key medical indicators, e.g. mortality rate for heart failure, pneumonia below German average Market Dynamics German Acute Care Hospital Market: ~ 98 bn 2 Growth Drivers: Aging population leading to increasing hospital admissions Largest network & nationwide presence Acute Care Outpatient 1 Based on sales 2 German Federal Statistical Office 2017; total costs, gross of the German hospitals less academic research and teaching 87 acute care hospitals ~29,400 beds ~1.2 million inpatient admissions p.a. ~4.0 million outpatient admissions p.a. As of July 2018 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 14
Fresenius Helios: Europe s Largest Private Hospital Operator Helios Spain ~ 2.6bn 1 sales in 2017 ~11% share in Spanish private hospital market Market leader in size and quality with excellent growth prospects Broad revenue base with privately insured patients, PPPs, self-pay and Occupational Risk Prevention (ORP) Strong management team with proven track record Cross-selling opportunities Market Dynamics Spanish Private Hospital Market: ~ 14 bn 2 Growth Drivers: Aging population, increasing number of privately insured patients, greenfield projects, market consolidation Quirónsalud hospitals in every major metropolitan region of Spain Acute Care Outpatient Occupational Risk Prevention 1 Eleven months contribution of Helios Spain 2 Market data based on company research. Market definition does neither include Public Private Partnerships (PPP) nor Occupational Risk Prevention centers (ORP). 45 hospitals ~6,700 beds ~11.2 m outpatient admissions p.a. ~350,000 inpatient admissions p.a. As of July 2018 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 15
Fresenius Helios: Excellent Sales And EBIT Development Sales in million EBIT 2 in million CAGR 1 5% V 8,668 2,594 CAGR 1 9% 1,052 327 5,244 5,578 5,843 553 642 683 6,074 725 '14 '15 '16 '17 '14 '15 '16 '17 2017: 11 months contribution of Helios Spain (Quirónsalud) 1 Excluding Quirónsalud 2 Before special items 2017: Helios Germany Helios Spain General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 16
Fresenius Vamed: Leading Global Hospital Projects and Services Specialist Manages hospital construction/expansion projects (49% of sales) and provides services (51% of sales) for health care facilities worldwide Offers project development, planning, turnkey construction, maintenance as well as technical management, and total operational management Strong track record: More than 800 projects in over 80 countries completed Market Dynamics Growth Drivers: Emerging Market demand for building and developing hospital infrastructure Outsourcing of non-medical services from public to private operators Leading European post-acute care provider with 63 inpatient health care facilities in five European countries Projects Emerging Markets 28% Services Sales 2017: 1.2 bn Europe 72% Post-acute care General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 17
Fresenius Vamed: Steady Sales And EBIT Growth Sales in million EBIT in million CAGR 6% CAGR 9% 1,042 1,118 1,160 1,228 59 64 69 76 '14 '15 '16 '17 '14 '15 '16 '17 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 18
Fresenius Group: Key Figures m 2017 2 2016 Growth Sales 33,886 29,471 +15% 1 EBITDA 6,267 5,517 +14% Margin 18.5% 18.7% EBIT 4,830 4,302 +12% Margin 14.3% 14.6% Interest, net -636-582 -9% EBT 4,194 3,720 +13% Taxes -1,184-1,044-13% Net Income 3 3,010 2,676 +12% Employees 4 273,249 232,873 1 6% organic growth, 10% acquisitions, 0% divestitures, -1% currency effects 2 Before special items 3 Net income incl. attributable to non-controlling interest 4 As of December, 31 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 19
Cash Flow Development by Business Segment Operating CF Capex (net) Free Cash Flow 1 m 2017 Margin 2017 Margin 2017 Margin 1,010 15.9% -420-6.6% 590 9.3% 733 8.5% -411-4.8% 322 3.7% 3 42 3.4% -7-0.5% 35 2.9% Corporate/Other -40 n.a -26 n.a. -66 n.a Excl. FMC 1,745 11.4% 2-864 -5.4% 881 6.0% 2 2,192 12.3% -841-4.7% 1,351 7.6% Group 3,937 11.6% -1,705-5.0% 2,232 4 6.6% 1 Before acquisitions and dividends 2 Incl. FMC dividend 3 Understated: 4.2% excluding 40 million of capex commitments from acquisitions 4-3,633 million after acquisitions, -4,557 million after acquisitions and dividends Margin = in % of sales General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 20
Fresenius Group Consistent Cash Generation CFFO margin FCF margin (before acquisitions & dividends) % % 14 13 12 11 8.7 11.0 12.0 10.3 12.6 11.4 10.9 12.0 12.2 11.6 10 8 6 2.7 6.3 7.4 5.6 7.6 6.2 5.2 6.7 6.7 6.6 10 9 4 8 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1/18 2 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1/18 Capex gross, in % of sales % 7 6 5 6.2 4.8 4.8 4.8 5.2 5.3 5.8 5.5 5.5 5.4 4 3 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1/18 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 21
Fresenius Group: Proven Track Record of Deleveraging Net Debt/EBITDA Hospitals from 4.0 3.0 3.2x 3.0x 2.7x 3.5x 3.0x 2.6x 3.6x 3.0x 2.8x 3.4x 2.5x 2.5x 2.7x 2.8x 3.0x 3 2.8x Target 2018 2 Further deleveraging expected 2.2x 2.3x 2.6x 2.4x 2.0 2001 2002 2003 2004 2005 Q1/06 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1/18 1 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 Rhoen-Klinikum AG, before special items 2 Calculated at expected annual average exchange rates, for both net debt and EBITDA; excluding expenses related to (i) the Akorn transaction, (ii) NxStage acquisition; excluding gains from divestitures of Care Coordination activities; excluding further potential acquisitions; at current IFRS rules 3 Excluding proceeds from divestitures of Care Coordination activities General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 22
Fresenius Group: Capitalization June 30, 2018 Instrument per Book Value in million in $ million 3 % of total cap Syndicated Credit Agreement: Revolver (, US-$) 0 0 0.0% Syndicated Credit Agreement: Term Loan A (, US-$) 2,180 2,541 3.0% Bonds (, US-$) 5,283 6,159 7.2% Convertible Bonds 940 1,096 1.3% Schuldschein Loans 1,714 1,998 2.3% Commercial Paper 825 962 1.1% Other debt 798 930 1.1% Total Debt (FSE excl. FMC), gross 11,740 13,686 16.0% Cash (excl. FMC) 615 717 0.8% Total debt (FSE excl. FMC), net 11,125 12,970 15.2% Total FMC debt, net 5,607 6,537 7.6% Consolidation Adjustments (10) (12) 4 EBITDA LTM x Total consolidated debt, net 16,722 19,495 22.8% 2.8x Market capitalization 1 56,697 66,098 77.2% 9.6x Total capitalization 73,419 85,592 100.0% 12.4x FSE Group EBITDA 2 5,930 1 Based on market capitalization for FSE and FMC as of June 30, 2018 2 Before acquisition-related expenses, Pro Forma acquisitions (acquisitions of Fresenius Medical Care and Fresenius Kabi ) 3 EUR/USD exchange rate as of June 30, 2018, except for market capitalization which uses the exchange rate as of June 30, 2018 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 23
Fresenius Group: Broad Mix of Financing Instruments Commercial Paper 9% Equity-neutral convertible bonds 7% Schuldschein Loans 9% Total B/S Debt 1 : ~ 18.989 m Other financial liabilities 5% Syndicated loans 22% Bonds 48% Well Positioned to Meet Financing Needs Optimize funding costs and ensure financial flexibility Diversify investor base Strong liquidity provided by sufficient financial cushion (~ 3.7 billion as of June 30, 2018) Average interest rate/cost of debt 2.6% p.a. 1 As of June 30, 2018 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 24
Fresenius Group: Debt Maturity Profile June 30, 2018 pro forma EUR 1,2 m 4,000 3,500 Maturity 3.3 years on average 3,000 2,500 2,000 2,007 1,500 1,000 946 1,496 913 1,902 500 2,071 0 0 1,154 1,127 1,360 988 1,681 307 343 500 0 907 0 0 0 0 500 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Fresenius Medical Care Fresenius excl. Fresenius Medical Care 1 Based on utilization of major financing instruments 2 Incl. new issuance 500 Mio. 2018-2025 Bond General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 25
Fresenius Group excl. Fresenius Medical Care: Debt Maturity Profile June 30, 2018 1 m 2,500 2,000 Maturity 3.8 years on average 293 393 500 1,500 45 421 1,000 500 151 262 901 914 207 500 0 780 151 1,150 800 707 700 50 700 500 500 91 257 76 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Bonds Syndicated Loan Schuldschein Loans Equity-neutral convertible bonds Commercial Papers 1 Based on utilization of major financing instruments General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 26
Fresenius Group: Solid Balance Sheet Structure B/S total ( bn) 40.0 43.2 46.7 53.1 40% 43% 45% 41% Healthy Equity and Liability Split Strong equity ratio of >40% on average Equity ratio kept in narrow range despite rapid growth of Fresenius Group 38% 34% 32% 36% 22% 23% 23% 23% Dec 31, 14 Dec 31, 15 Dec 31, 16 Dec 31, 17 Equity and noncontrolling interest Debt Other liabilities General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 27
Fresenius Group: Strong Access to Capital Markets Major Financing Instruments 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Bonds 425 m $500 m 250 m 800 m $1.05 bn 750 m $1.5 bn 500 m 1.2 bn $1.2 bn $300 m 2.6 bn 500 m² Syndicated Loans $3.05 bn $3.5 bn $898 m $3.85 bn $1.8 bn 2.45 bn $4.1 bn 700 m $1.15 bn 2.05 bn 5.30 bn $3.55 bn Schuldschein Loans Exchangeable Bonds Convertible Bonds 400 m 200 m 400 m 125 m 500 m 112 m $400 m 1.0 bn 554 m 900 m 500 m Equity 289 m 1.0 bn 400 m 1 1 Private Placement in connection with the acquisition of Quirónsalud 2 Incl. July 11, 2018 new 500 Mio. 2018-2025 Bond issued by Fresenius Medical Care General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 28
Fresenius SE: Rating History & Rationale Rating History Rating Agencies Key Statements FSE's main divisions have developed very favorably through a mix of organic and inorganic growth over the past decade, and they have reached critical size. S&P Jan 16, 2015, Upgrade to investment grade Current Credit Ratings Today's upgrade reflects the company's significant scale, stability of profit and cash flow generation through economic cycles on the back of activities in defensive industries, as well as geographic and business diversification within the broader health care industry. Moody s Nov 16, 2015, Upgrade to investment grade S&P Moody s Fitch Corporate Credit Rating BBB- Baa3 BBB- Outlook positive stable stable Following Fresenius announcement to acquire Akorn, Inc. and Merck KGaA s biosimilars business in April 2017, Standard & Poor s (BBB-, stable), Moody s (Baa3, stable) and Fitch (BBB-, stable) confirmed the corporate credit ratings of Fresenius to be unaffected. In December 2017, S&P revised the outlook to positive. The BBBcorporate credit rating was affirmed. The upgrade reflects Fresenius' improving business risk profile, driven by its increasing scale and diversification in its selective health care operations, which is translating into strong profitability and cash generation. In addition, Fitch views the underlying operations as mature and defensive with low cyclicality and volatility of earnings. Fitch July 29, 2016, Upgrade to investment grade General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 29
Fresenius Group: 2018 Financial Outlook by Business Segment m (except otherwise stated) FY/17 Base H1/18 FY/18 1 Actual FY/18e 1 New Sales growth (org) 6,358 7% 4% - 7% EBIT growth (cc) 1,177 2-1% 6-6% to -3% 2-2% to 1% 2 EBIT growth (cc) excl. biosimilars 1,237 3 10% 6 ~2% - 5% 3 ~6% - 9% 3 Sales growth (org) 8,668 4 4% 3% - 6% 5 EBIT growth 1,052 4 6% 5% - 8% 7 Sales growth (org) 1,228 5% 5% - 10% EBIT growth 76 6% 32% - 37% 8 1 Excluding effects of the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities 2 Before special items; including expenditures for further development of biosimilars business ( 60 m in FY/17 and expected expenditures of ~ 160 m in FY/18) 3 Before special items; excluding expenditures for further development of biosimilars business ( 60 m in FY/17 and expected expenditures of ~ 160 m in FY/18) 4 Helios Spain consolidated for 11 months 5 Organic growth reflects 11 months contribution of Helios Spain in 2018 6 Before special items 7 Before transfer of the German inpatient post-acute care business from Helios to Vamed: 7% - 10% 8 Before transfer of the German inpatient post-acute care business from Helios to Vamed: 5% - 10% For a detailed overview of special items please see the reconciliation tables on slides 42-43. General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 30
Fresenius Group: 2018 Financial Guidance m (except otherwise stated) FY/17 Base H1/18 Actual FY/18e 1 FY/18 1 Sales growth (cc) 32,842 2 6% 8 5% - 8% Net income 3 growth (cc) Net income 3 growth (cc) excl. Biosimilars 1,804 4 7% 6% - 9% 5 1,847 6 12% ~10% - 13% 7 1 Excluding effects of the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities 2 2017 base adjusted for IFRS 15 adoption (deduction of 486 million at Fresenius Medical Care) and divestitures of Care Coordination activities (deduction of 558 million at Fresenius Medical Care) 3 Net income attributable to shareholders of Fresenius SE & Co. KGaA 4 Before special items, i.e. expenses related to the Akorn and NxStage transactions, gains from divestitures of Care Coordination activities (deduction of 12 million at Fresenius Medical Care), book gain from the U.S. tax reform and FCPA provision 5 Before special items (i.e. expenses related to the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities; including expenditures for further development of biosimilars business ( 43 m after tax in FY/17 and expected expenditures of ~ 120 m after tax in FY/18) 6 Adjusted net income: Before special items (i.e. expenses related to the Akorn and NxStage transactions and gains from divestiture of Care Coordination activities (deduction of 12 million at Fresenius Medical Care), book gain from the U.S. tax reform and FCPA provision), before expenditures for further development of biosimilars business 7 Before special items (i.e. expenses related to the Akorn and NxStage transactions and gains from divestitures of Care Coordination activities; excluding expenditures for further development of biosimilars business ( 43 m after tax in FY/17 and expected expenditures of ~ 120 m after tax in FY/18) 8 Growth rate adjusted for IFRS 15 adoption (H1/17 base: 16,624 million) For a detailed overview of special items please see the reconciliation tables on slides 42-43. General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 31
Basis for guidance m 2017 Targets 2018 Sales reported 33,886 adjustments from IFRS 15-486 divestitures of Care Coordination activities at FMC -558 Basis sales guidance 32,842 5-8% Net income reported 1,814 Acquistion-related expenses 43 Book gain from U.S. tax reform -103 FCPA provision 62 divestitures of Care Coordination activities at FMC -12 Basis net income before special items guidance 1,804 6-9% Adjustments for guidance comparison: Expenditures for further development of biosimilars business 43 Basis net income guidance excluding biosimilars 1,847 ~10-13% General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 32
Fresenius Group: 2020 Mid-Term Growth Targets Confirmed Sales CAGR Net Income CAGR 12.6% 10.3% 10.5% incl. small & midsize acquisitions 8.7% 7.1% incl. small & midsize acquisitions 8.3% FY/2017 FY/2020 FY/2017 FY/2020 At constant exchange rates and IFRS rules as of Feb 2017 Net income attributable to shareholders of Fresenius SE & Co. KGaA General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 33
Fresenius Group: Credit Highlights Consistent Cash Generation Well-Balanced Maturity Profile Proven Track Record of Deleveraging Following Acquisitions Solid Balance Sheet Structure Broad Mix of Financing Instruments Strong Access to Capital Markets General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 34
Attachments General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 35
Fresenius Group: Key Figures 2017 2016 2015 Debt ( m) thereof US$ denominated 19,042 31% 14,780 52% 14,769 52% Net debt ( m) 17,406 13,201 13,725 Net debt/ebitda 1,3 Net debt at year-end exchange rate; EBITDA at LTM average FX rates Net debt/ebitda 1,4 at LTM average FX rates for both net debt and EBITDA 2.79 2.39 2.68 2.84 2.33 2.65 Operating Cash flow/sales 11.6% 12.2% 12.0% EBITDA/Interest 2 9.9 9.5 8.4 1 2015 and 2017 before special items; 2016 and 2017 pro forma acquisitions 2 2015 and 2017 before special items 3 2016 pro forma Quirónsalud acquisition: 3.15 4 2016 pro forma Quirónsalud acquisition: 3.09 General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 36
Fresenius Group: Debt and Cash Flow Structure June 30, 2018 Fresenius Medical Care Financing Group Net Debt: ~ 16.7 bn Fresenius SE Financing Separate financing of Fresenius SE and Fresenius Medical Care No joint financing facilities or mutual guarantees Stock Market Value ~ 8.2 bn 4 FSE Net Debt1 : ~ 11.3 bn Dividends, Rents, Service Agreements Profit transfer Agreements 5 FSE Net Debt: ~ 11.1 bn incl. Net Debt of Kabi/Helios/Vamed Fresenius Kabi, Fresenius Helios and Fresenius Vamed financed primarily through Fresenius SE to avoid structural subordination ~31% 2 100% 100% 77% 5,607 m Net Debt 3-145 m Net Debt 3 152 m Net Debt 3-152 m Net Debt 3 1 Incl. Fresenius financing subsidiaries 2 Controlling stake 3 Incl. subsidiaries 4 Based on market capitalization for FMC as of June 30, 2018 5 Via German holding entities (Fresenius Kabi AG and Fresenius ProServe GmbH) General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 37
Fresenius Group: Cash Flow m 2017 Margin 2016 Margin Δ YoY Operating Cash Flow 3,937 11.6% 3,585 12.2% 10% Capex (net) -1,705-5.0% -1,616-5.5% -6% Free Cash Flow (before acquisitions and dividends) 2,232 6.6% 1,969 6.7% 13% Acquisitions (net) -5,865-485 -- Dividends -924-738 -25% Free Cash Flow (after acquisitions and dividends) -4,557-13.4% 746 2.5% -- General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 38
Fresenius Group: Financial Results by Business Segment 2017 2016 2015 Growth 2017/2016 Sales 17,784 m 16,570 m 15,455 m 7% EBIT 2,562 m 2,409 m 2,129 m 6% Sales 6,358m 6,007 m 5,950 m 6% EBIT 1,177 m 1,171 m 1,197 m 1% Sales 8,668 m 5,843 m 5,578 m 48% EBIT 1,052 m 683 m 642 m 54% Sales 1,228 m 1,160 m 1,118 m 6% EBIT 76 m 69 m 64 m 10% Sales 33,886 m 29,471 m 27,995 m 15% Group EBIT 4,830 m 4,302 m 4,001 m 12% 2015 and 2017 before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 39
Fresenius Group: Margins by Business Segment 2017 2016 2015 EBITDA margin 18.5% 18.8% 18.0% EBIT margin 14.4% 14.5% 13.8% EBITDA margin 23.3% 24.4% 24.6% EBIT margin 18.5% 19.5% 20.1% EBITDA margin 16.5% 15.0% 14.9% EBIT margin 12.1% 11.7% 11.5% EBITDA margin 7.1% 6.9% 6.7% EBIT margin 6.2% 5.9% 5.7% EBITDA margin 18.5% 18.7% 18.3% Group EBIT margin 14.3% 14.6% 14.3% 2015 and 2017 before special items General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 40
Fresenius SE & Co. KGaA: Overview Bonds Issuer Volume (in millions) Coupon type Coupon (in %) Maturity/ Term ISIN (RegS) WKN Fresenius SE & Co. KGaA Fresenius SE & Co. KGaA Fresenius SE & Co. KGaA Fresenius SE & Co. KGaA Fresenius SE & Co. KGaA Fresenius Finance Ireland plc. Fresenius Finance Ireland plc. Fresenius Finance Ireland plc. Fresenius Finance Ireland plc. Fresenius US Finance II, Inc. Fresenius US Finance II, Inc. 500 Fix 4.25 2012/2019 XS0759200321 A1G2YM 300 Fix 2.375 2014/2019 XS1013954646 A1ZB7G 500 Fix 2.875 2013/2020 XS0873432511 A1HEWZ 450 Fix 3.00 2014/2021 XS1013955379 A1ZB7H 450 Fix 4.00 2014/2024 XS1026109204 A1ZC60 700 Fix 0.875 2017/2022 XS1554373164 A19B3F 700 Fix 1.50 2017/2024 XS1554373248 A19B3G 700 Fix 2.125 2017/2027 XS1554373677 A19B3H 500 Fix 3.00 2017/2032 XS1554373834 A19B3J US$300 Fix 4.25 2014/2021 USU31436AG04 A1ZDVJ US$300 Fix 4.50 2015/2023 USU31436AH86 A1Z64A General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 41
Reconciliation FY/17 Consolidated results for 2017 include special items related to the acquisition of the biosimilars business of Merck KGaA, the announced acquisition of the shares in Akorn, Inc. (acquisition related expenses). These are mainly transaction costs in the form of legal and consulting fees as well as costs of the financing commitment for the Akorn transaction. Moreover special items arose from a book gain from the revaluation of deferred tax liabilities due to U.S. tax reform as well as from the FCPA provision. In order to compare the results with the scope of original guidance, key figures are additionally adjusted for expenditures for further development of the biosimilars business. The following presentation shows the corresponding reconciliation to the IFRS values. There were neither adjustments nor special items in 2016. m Basis for guidance comparison: Before special items and before biosimilars business Expenditures for further development of biosimilars business Before special items Special items (acquisitionrelated expenses) Special items (book gain U.S. tax reform) Special items (FCPA provision) After special items (IFRS reported) Sales 33,886 33,886 33,886 EBIT Net interest 4,890-634 -60-2 4,830-636 -41-15 -200 4,589-651 Net income before taxes Income taxes 4,256-1,203-62 19 4,194-1,184-56 13 266-200 3,938-905 Net income Noncontrolling interest 3,053-1,194-43 3,010-1,194-43 266-163 -200 138 3,033-1,219 Net income attributable to shareholders of Fresenius SE & Co. KGaA 1,859-43 1,816-43 103-62 1,814 The acquisition-related expenses are reported in the Group Corporate/Other segment. General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 42
Reconciliation H1/18 Consolidated results for H1/2018 include special items related to the Akorn transaction. These are mainly transaction costs in the form of legal and consulting fees as well as costs of the financing commitment for the Akorn transaction. Moreover special items arose from gains/losses of divestitures of Care Coordination activities at Fresenius Medical Care. The following presentation shows the corresponding reconciliation to the IFRS values. m H1/2018 Before special items and before expenses for biosimilars business Expenses for the further development of the biosimilars business Before special items Special items (transactionrelated effects Akorn) Special items (gain from divestitures of Care Coordination activities) After special items (IFRS reported) Sales 16,503 16,503 16,503 EBIT Net interest 2,271-293 -72-4 2,199-297 -40-7 820 2,979-304 Net income before taxes Income taxes 1,978-447 -76 23 1,902-424 -47 10 820-147 2,675-561 Net income Noncontrolling interest 1,531-556 -53 1,478-556 -37 673-466 2,114-1,022 Net income attributable to shareholders of Fresenius SE & Co. KGaA 975-53 922-37 207 1,092 The special items are reported in the Group Corporate/Other segment. General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 43
Financial Calendar / Contact Financial Calendar 2018 30 October 2018 Results Q3/2018 17 May 2019 Annual General Meeting 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 Follow us on Twitter and LinkedIn: www.twitter.com/fresenius_ir www.linkedin.com/company/fresenius-investor-relations General Credit Presentation, August 2018, Fresenius SE & Co. KGaA Investor Relations 44