Fresenius Medical Care AG & Co. KGaA COMPLETE OVERVIEW OF THE RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF FINANCIAL YEAR 2019 July 30, 2019 Investor Relations phone: +49 6172 609 2525 email: ir@fmc-ag.com Content: Statement of earnings Segment information Balance sheet Cash flow Revenue development Key metrics Quality data Reconciliation Reconciliation adjusted results page 2 page 3 page 4 page 5 page 6 page 7 page 8 page 9 page 10 Disclaimer This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. Copyright by Fresenius Medical Care AG & Co. KGaA 1 of 10 July 30, 2019
Statement of earnings in € million, except share data, unaudited Three months ended June 30 Six months ended June 30 at cc at cc Health Care Products 890 829 7.4% 6.0% 1,705 1,595 6.9% 5.2% Gross profit 1,331 1,304 2.0% -1.8% 2,597 2,507 3.6% -0.8% (Gain) loss related to divestitures of Care Coordination activities (11) (833) -98.6% -98.7% (11) (820) -98.6% -98.7% Income from equity method investees (22) (17) 36.1% 35.7% (43) (34) 23.5% 23.1% Operating income margin in % 12.0% 33.3% 12.5% 23.2% Interest income 2 3 -25.1% -37.9% (26) (22) 17.2% 15.3% Interest expense, net 114 85 35.0% 29.6% 222 168 32.5% 26.6% Income tax expense 92 261 193 345 -44.1% -46.7% -64.7% -66.7% Net income attributable to noncontrolling interests 61 61 -0.5% -6.1% 118 112 4.9% -1.8% Depreciation and amortization 387 180 114.7% 106.4% 749 355 111.0% 101.6% EBITDA margin in % 20.9% 37.5% 21.3% 27.5% Weighted average number of shares 303,456,178 306,355,571 305,048,922 306,404,051 Basic earnings per share €0.84 €3.24 -74.2% -75.6% €1.72 €4.15 -58.6% -60.5% Based on the IFRIC agenda decision relating to the applicability of IAS 12 to the accounting for interest and penalties related to income taxes and an interpretation issued by the Accounting Standards Committee of Germany (ASCG) approved in September 2018 interest and penalties related to income taxes have been reclassified from income tax expense to interest expense, net in the amount of €1 million for the three months and €4 million for the six months ended June 30, 2018. Statement of earnings page 2 of 10 July 30, 2019 Basic earnings per ADS€0.42€1.62-74.2%-75.6%€0.86€2.08-58.6%-60.5% EBITDA9081,581-42.6%-45.2%1,8072,253-19.8%-23.5% Operating income (EBIT)5211,401-62.8%-64.7%1,0581,898-44.3%-46.9% Net income attributable to shareholders of FMC-AG & Co. KGaA254994-74.5%-75.9%5251,273-58.8%-60.7% Net income3151,055-70.2%-71.8%6431,385-53.6%-55.9% Income before taxes4071,316-69.1%-70.8%8361,730-51.7%-54.1% Interest expense1128237.0%31.8%24819030.8%25.3% Operating income (EBIT)5211,401-62.8%-64.7%1,0581,898-44.3%-46.9% Research and development41389.0%6.9%75707.3%5.1% Selling, general and administrative80271512.2%9.0%1,5181,3938.9%4.7% Costs of revenue3,0142,9103.6%0.4%5,8815,6823.5%-0.4% Total revenue4,3454,2143.1%-0.3%8,4788,1893.5%-0.6% Health Care Services3,4553,3852.1%-1.8%6,7736,5942.7%-2.0% 20192018ChangeChange20192018ChangeChange
Segment information unaudited Three months ended June 30 Six months ended June 30 at cc at cc Revenue in € million 4,345 4,214 3.1% -0.3% 8,478 8,189 3.5% -0.6% Operating income margin in % 12.0% 33.3% 12.5% 23.2% Days sales outstanding (DSO) 77 82 Revenue in € million 3,061 2,971 3.0% -2.9% 5,948 5,746 3.5% -3.4% Operating income margin in % 14.0% 43.3% 13.5% 28.7% Days sales outstanding (DSO) 63 66 U.S. Cost per dialysis treatment in US$ 1 297 289 3.1% n.a. 299 289 3.5% n.a. EMEA Operating income (EBIT) in € million 96 105 -8.1% -7.9% 235 214 9.5% 10.1% Delivered EBIT in € million 94 104 -8.5% -8.2% 232 212 9.2% 9.7% 458 422 8.5% 7.0% 886 814 8.8% 6.5% Revenue in € million Operating income margin in % 15.1% 18.4% 18.5% 18.7% Days sales outstanding (DSO) 122 130 Latin America -47.3% -81.1% Operating income (EBIT) in € million 6 11 17 25 -31.6% -49.4% Delivered EBIT in € million 6 11 -47.0% -81.0% 17 25 -32.7% -50.5% Revenue in € million 6 5 31.2% 31.0% 9 7 23.3% 23.1% Delivered EBIT in € million (79) (79) 0.6% -0.5% (159) (141) 12.4% 10.8% 1 2019 excluding the effects from the implementation of IFRS 16. Segment information page 3 of 10 July 30, 2019 Operating income (EBIT) in € million(79)(79)0.6%-0.5%(159)(141)12.4%10.8% Corporate Days sales outstanding (DSO)116126 Operating income margin in %3.4%6.8%5.2%7.6% Revenue in € million1721645.3%25.9%334334-0.1%20.0% Delivered EBIT in € million6776-11.0%-12.2%1601488.4%6.3% Operating income (EBIT) in € million6978-10.9%-12.2%1641527.9%5.7% Asia-Pacific Days sales outstanding (DSO)101102 Operating income margin in %14.9%16.1%18.0%16.6% Revenue in € million648652-0.6%0.1%1,3011,2881.0%2.1% Revenue per dialysis treatment in US$3583541.2%n.a.3573511.7%n.a. Delivered EBIT in € million3721,228-69.7%-71.4%6901,542-55.2%-57.8% Operating income (EBIT) in € million4291,286-66.6%-68.5%8011,648-51.4%-54.2% North America Employees (full-time equivalents)119,631111,263 Delivered EBIT in € million4601,340-65.6%-67.4%9401,786-47.4%-49.8% Operating income (EBIT) in € million5211,401-62.8%-64.7%1,0581,898-44.3%-46.9% Total 20192018ChangeChange20192018ChangeChange
Balance sheet in € million, except net leverage ratio, unaudited June 30 June 30 December 31 Current assets 7,167 7,847 Right of use assets 4,227 - Total assets 31,956 26,242 Liabilities and equity Non-current liabilities 11,935 7,072 Total liabilities and equity 31,956 26,242 Equity/assets ratio 40% 49% Debt Short-term debt from related parties 77 77 189 Current portion of long-term lease liabilities 603 - - Long-term debt, less current portion 5,923 5,895 5,045 Long-term lease liabilities from related parties, less current portion 114 - - Cash and cash equivalents 922 922 2,146 Total net debt 12,488 7,924 5,400 Annualized EBITDA1 2,653 2,178 2,215 Operating income (EBIT) Non-cash charges 45 45 45 Annualized EBITDA 3,839 3,025 2,976 1 EBITDA : including largest acquisitions and divestitures and excluding the gain (loss) related to divestitures of Care Coordination activities and NxStage related transaction costs. Balance sheet page 4 of 10 July 30, 2019 Net leverage ratio3.32.61.8 Depreciation and amortization1,141802716 Total debt13,4108,8467,546 Long-term lease liabilities, less current portion3,810--Current portion of long-term lease liabilities from related parties16--Current portion of long-term debt1,5091,5161,107 Short-term debt1,3581,3581,205 excluding IFRS 16 implementation Total equity12,80012,902 Current liabilities7,2216,268 Other non-current assets5,6205,504 Goodwill and intangible assets14,94212,891 Assets 201920192018
Cash flow statement in € million, unaudited Three months ended June 30 Six months ended June 30 Operating activities Depreciation / amortization 387 180 749 355 Net cash provided by (used in) operating activities 852 656 928 611 Purchases of property, plant and equipment (296) (244) (497) (466) Capital expenditures, net (293) (227) (493) (446) Free cash flow 559 429 435 165 Proceeds from divestitures 11 1,662 23 1,662 Free cash flow after investing activities 476 1,927 (1,465) 1,482 Cash flow page 5 of 10 July 30, 2019 Acquisitions and investments, net of divestitures(83)1,498(1,900)1,317 Acquisitions and investments, net of cash acquired, and purchases of intangible assets(94)(164)(1,923)(345) In percent of revenue12.9%10.2%5.1%2.0% Proceeds from sale of property, plant and equipment317420 Investing activities In percent of revenue19.6%15.6%10.9%7.5% Change in working capital and other non-cash items150(579)(464)(1,129) Net income3151,0556431,385 2019201820192018
Revenue development Same market treatment growth1 in € million, unaudited Change at cc Organic growth 2019 2018 Change Three months ended June 30 Health Care Services 3,455 3,385 2.1% -1.8% 5.2% 3.7% Thereof Care Coordination revenue 335 578 -42.1% -44.9% -4.6% 4.1%2 Health Care Services 2,789 2,761 1.0% -4.8% 4.1% Thereof Dialysis Care revenue 2,511 2,232 12.6% 6.1% 5.4% 4.1%2 Thereof Care Coordination revenue 278 529 -47.5% -50.4% -6.7% Health Care Services 335 315 6.4% 7.3% 5.5% 3.2% Thereof Dialysis Products 296 319 -7.2% -6.5% -6.1% Health Care Services 210 191 9.9% 6.7% 5.9% 7.2% Thereof Care Coordination revenue 57 49 16.4% 15.2% 6.5% Health Care Services 118 2.0% 28.1% 24.9% 2.2% 121 Total revenue 8,478 8,189 3.5% -0.6% 5.3% Thereof Dialysis Care revenue 6,078 5,455 11.4% 6.5% 6.3% 3.7% Health Care Products 1,705 1,595 6.9% 5.2% 3.2% North America 5,948 5,746 3.5% -3.4% 5.1% Health Care Services 5,469 5,351 2.2% -4.6% 5.1% 4.0%2 4.0%2 Thereof Dialysis Care revenue 4,883 4,306 13.4% 5.8% 5.8% Health Care Products 479 395 21.2% 13.1% 4.5% EMEA 1,301 1,288 1.0% 2.1% 1.7% Health Care Products 642 659 -2.6% -1.9% -1.6% Thereof Non-Dialysis Products 36 38 -5.5% -5.5% -5.5% Asia-Pacific 886 814 8.8% 6.5% 6.6% Thereof Dialysis Care revenue 300 281 7.1% 2.5% 5.4% 7.2% Health Care Products 477 439 8.6% 7.5% 7.5% Latin America 334 334 -0.1% 20.0% 18.0% Health Care Products 98 95 3.8% 10.2% 10.4% Corporate 9 7 23.3% 23.1% 1 same market treatment growth = organic growth less price effects 2 U.S. (excl. Mexico), same market treatment growth North America: 4.1% for the three months and 3.7% for the six months ended June 30, 2019 Revenue development page 6 of 10 July 30, 2019 Health Care Services236239-1.6%23.8%21.1%1.5% Thereof Care Coordination revenue1099415.2%13.5%5.7% Health Care Services4093759.2%5.3%5.5%7.2% Thereof Dialysis Products606621-2.4%-1.7%-1.3% Health Care Services6596294.8%6.3%5.2%3.6% Thereof Care Coordination revenue5861,045-43.9%-47.6%0.0% Thereof Care Coordination revenue6951,139-39.0%-42.5%0.8% Health Care Services6,7736,5942.7%-2.0%5.8%3.7% Six months ended June 30 Corporate6531.2%31.0% Health Care Products514613.6%20.4%20.5% Latin America1721645.3%25.9%23.7% Health Care Products2482317.3%7.3%7.3% Thereof Dialysis Care revenue1531427.7%3.7%5.7%7.2% Asia-Pacific4584228.5%7.0%6.7% Thereof Non-Dialysis Products1718-8.1%-8.0%-8.0% Health Care Products313337-7.2%-6.6%-6.2% EMEA648652-0.6%0.1%-0.7% Health Care Products27221029.0%21.3%3.7% North America3,0612,9713.0%-2.9%4.1% Health Care Products8908297.4%6.0%1.6% Thereof Dialysis Care revenue3,1202,80711.2%7.0%6.3%3.7% Total revenue4,3454,2143.1%-0.3%4.4%
Key metrics North America segment unaudited Three months ended June 30 Six months ended June 30 at cc at cc Revenue in € million 2,783 2,442 14.0% 7.4% 5,362 4,701 14.0% 6.5% Operating income (EBIT) in € million 428 417 2.7% -3.1% 760 766 -0.7% -6.4% Operating income margin in % 15.4% 17.1% 14.2% 16.3% Revenue in € million 278 529 -47.5% -50.4% 586 1,045 -43.9% -47.6% Operating income margin in % 0.3% 164.1% 6.9% 84.5% Key metrics Care Coordination unaudited Six months ended June 30 2019 2018 Change North America Member months under medical cost management1 336,256 337,625 -0.4% Medical cost under management (in € million)1 2,433 -10.7% -16.6% 2,174 1 The metrics may be understated due to a physician mapping issue related to the BPCI program within a CMS system which has not yet been resolved. Additionally, data presented for the BPCI and ESCO metrics are subject to finalization by CMS, which may result in changes from previously reported metrics. Key metrics Dialysis Care Services unaudited Six months ended June 30, 2019 Clinics De novos Patients Treatments Total 3,996 5% 68 339,550 4% 25,520,263 4% North America 2,583 6% 37 208,019 4% 15,698,880 4% EMEA 783 3% 17 65,871 4% 4,976,025 4% Asia-Pacific 399 4% 12 31,845 4% 2,237,630 4% Key metrics page 7 of 10 July 30, 2019 Latin America231-1%233,8157%2,607,7285% GrowthGrowthGrowth in %in %in % Care Coordination patient encounters1550,2333,914,025-85.9% Change at cc Delivered EBIT in € million(1)863n.an.a33873-96.2%-96.5% Operating income (EBIT) in € million1869-99.9%-99.9%41882-95.4%-95.7% Care Coordination Delivered EBIT in € million3733652.0%-3.6%657669-1.8%-7.3% Dialysis 20192018ChangeChange20192018ChangeChange
Quality data1 in % of patients North America EMEA Latin America Asia-Pacific Kt/v 1.2 97 98 94 95 90 91 96 96 Hemoglobin = 10-12 g/dl 71 73 82 83 50 52 56 57 Albumin 3.5 g/dl1) 81 80 89 90 92 91 90 89 Patients without catheter (after 90 days) 82 83 79 80 79 80 85 87 in days Days in hospital per patient year 10.3 10.9 7.6 7.8 4.2 4.1 2.7 3.6 1 Definitions cf. Annual Report 2018, Section "Non-Financial Group Report" Quality data page 8 of 10 July 30, 2019 Phosphate 5.5 mg/dl6062797876766466 Calcium = 8.4-10.2 mg/dl8485797977787374 Q2 2019Q2 2018Q2 2019Q2 2018Q2 2019Q2 2018Q2 2019Q2 2018
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures Three months ended June 30 Six months ended June 30 in € million, unaudited Delivered EBIT reconciliation Operating income (EBIT) 521 1,401 1,058 1,898 Delivered EBIT 460 1,340 940 1,786 North America less noncontrolling interests (57) (58) (111) (106) Operating income (EBIT) 428 417 760 766 Delivered EBIT 373 365 657 669 Care Coordination less noncontrolling interests (2) (6) (8) (9) Operating income (EBIT) 96 105 235 214 Delivered EBIT 94 104 232 212 Asia-Pacific less noncontrolling interests (2) (2) (4) (4) Operating income (EBIT) 64 72 154 140 Delivered EBIT 63 70 150 137 Care Coordination Operating income (EBIT) 5 6 10 12 less noncontrolling interests (1) 0 0 (1) Delivered EBIT 4 6 10 11 Operating income (EBIT) 6 11 17 25 Delivered EBIT 6 11 17 25 Corporate less noncontrolling interests 0 0 0 0 Reconciliation of net cash provided by operating activities to EBITDA1 1,807 2,253 Total EBITDA Income tax expense (193) (345) 928 611 Net cash provided by operating activities 1 EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care's long-term debt instruments. Reconciliation page 9 of 10 July 30, 2019 Change in working capital and other non-cash items(464)(1,129) Interest expense, net(222)(168) Delivered EBIT(79)(79)(159)(141) Operating income (EBIT)(79)(79)(159)(141) less noncontrolling interests0000 Latin America less noncontrolling interests(1)(2)(4)(3) Dialysis Delivered EBIT6776160148 Operating income (EBIT)6978164152 less noncontrolling interests(2)(1)(3)(2) EMEA Delivered EBIT(1)86333873 Operating income (EBIT)186941882 less noncontrolling interests(55)(52)(103)(97) Dialysis Delivered EBIT3721,2286901,542 Operating income (EBIT)4291,2868011,648 less noncontrolling interests(61)(61)(118)(112) Total 2019201820192018
Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures in € million, except share data, unaudited (Gain) loss related to divestitures of Care Coordination activities (Gain) loss related to divestitures of Care Coordination activities Change (adjusted results) at cc Cost NxStage optimization Results 2019 Adjusted Results 2018 Adjusted Change (adjusted results) Results IFRS 16 NxStage operations Results 2018 Sound1 2019 Implementation costs costs Three months ended June 30 Total revenue 4,345 18 (79) 4,284 4,214 (258) 3,956 8.3% 4.8% Health Care Services 3,455 (4) 3,451 3,385 (258) 3,127 10.4% 6.1% Health Care Products 890 18 (75) 833 829 829 0.5% -0.4% North America 3,061 18 (79) 3,000 2,971 (258) 2,713 10.6% 4.2% 2,511 2,232 thereof Dialysis Care (4) 2,507 2,232 12.4% 5.9% Health Care Products 272 18 (75) 215 210 210 2.0% -3.9% EBITDA 908 (201) (14) 4 3 (11) 689 1,581 (14) (833) 734 -6.2% -10.6% 521 Total operating income (EBIT) (30) 4 4 3 (11) 491 1,401 (10) (833) 558 -12.1% -16.7% North America 429 (27) 6 4 3 (11) 404 1,286 (10) (833) 443 -8.8% -13.7% 428 Dialysis (25) 6 4 3 416 417 417 -0.3% -5.7% Care Coordination 1 (2) (11) (12) 869 (10) (833) 26 n.a n.a 96 EMEA (2) 94 105 105 -10.2% -10.0% Asia-Pacific 69 (1) 68 78 78 -12.1% -13.4% Dialysis 64 0 64 72 72 -10.7% -12.4% Care Coordination 5 (1) 4 6 6 -29.9% -26.0% Latin America 6 (2) 4 11 11 -60.0% -96.8% Corporate (79) 2 (2) (79) (79) (79) 2.2% 1.1% Income tax expense 92 3 6 1 1 (2) 101 261 1 (147) 115 -11.4% -16.3% Net income2 254 10 19 3 2 (9) 279 994 0 (686) 308 -9.4% -14.3% Six months ended June 30 Total revenue 8,478 40 (109) 8,409 8,189 (509) 7,680 9.5% 5.2% Health Care Services 6,773 (6) 6,767 6,594 (509) 6,085 11.2% 6.1% Health Care Products 1,705 40 (103) 1,642 1,595 1,595 2.9% 1.5% North America 5,948 40 (109) 5,879 5,746 (509) 5,237 12.2% 4.8% Health Care Services 5,469 (6) 5,463 5,351 (509) 4,842 12.8% 5.3% thereof Dialysis Care 4,883 (6) 4,877 4,306 4,306 13.3% 5.7% thereof Care Coordination 586 586 1,045 (509) 536 9.4% 2.1% Health Care Products 479 40 (103) 416 395 395 5.1% -1.9% EBITDA 1,807 (385) (11) 20 7 (11) 1,427 2,253 (23) (820) 1,410 1.2% -3.4% Total operating income (EBIT) 1,058 (48) 16 20 7 (11) 1,042 1,898 (14) (820) 1,064 -2.0% -6.8% North America 801 (39) 17 20 7 (11) 795 1,648 (14) (820) 814 -2.4% -8.1% Dialysis 760 (36) 17 20 7 768 766 766 0.3% -5.5% Care Coordination 41 (3) (11) 27 882 (14) (820) 48 -45.4% -49.0% EMEA 235 (4) 231 214 214 8.1% 8.7% Asia-Pacific 164 (2) 162 152 152 6.7% 4.5% Dialysis 154 (1) 153 140 140 9.0% 6.4% Care Coordination 10 (1) 9 12 12 -19.9% -17.8% Latin America 17 (1) 16 25 25 -38.2% -57.8% Corporate (159) (2) (1) (162) (141) (141) 14.2% 12.5% Interest expense, net 222 (85) (29) 108 168 (21) 147 -26.5% -29.2% Income tax expense 193 9 12 5 2 (2) 219 345 1 (146) 200 9.2% 4.0% Net income attributable to noncontrolling interests 118 118 112 1 113 4.5% -2.2% Net income2 525 1,273 28 33 15 5 (9) 597 5 (674) 604 -1.1% -5.8% Basic earnings per share € 1.72 € 0.09 € 0.11 € 0.05 € 0.02 (€ 0.03) € 1.96 € 4.15 € 0.01 (€ 2.19) € 1.97 -0.6% -5.4% 1 Contribution of Sound Physicians 2 Attributable to shareholders of FMC-AG & Co. KGaA Reconciliation adjusted results page 10 of 10 July 30, 2019 Basic earnings per share€ 0.84€ 0.03€ 0.06€ 0.01€ 0.01(€ 0.03)€ 0.92€ 3.24€ 0.01(€ 2.24)€ 1.01-8.5%-13.5% Net income attributable to noncontrolling interests616161061-1.2%-6.7% Interest expense, net114(43)(21)5085(11)74-33.3%-35.3% thereof Care Coordination278278529(258)2712.4%-3.4% Health Care Services2,789(4)2,7852,761(258)2,50311.3%4.9%