Fresenius

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T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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If no timeframe is specified, information refers to fiscal year 2015.

Fiscal year 2015:

Sales: €27.6 billion (+19%, +9% in constant currency)
EBIT¹: €3,958 million (+25%, +13% in constant currency)
Net income^1,2: €1,423 million (+31%, +21% in constant currency)
Dividend proposal: +25% to €0.55 per share

Q4/2015:

Sales: €7.3 billion (+11%, +5% in constant currency)
EBIT¹: €1,109 million (+19%, +10% in constant currency)
Net income^1,2: €414 million (+30%, +24% in constant currency)

Group guidance 2016:

Sales growth of 6% to 8% in constant currency
Net income^1,2 growth of 8% to 12% in constant currency

Targets 2019³:

Group sales: between €36 billion and €40 billion
Group net income²: between €2.0 billion and €2.25 billion

Ulf Mark Schneider, CEO of Fresenius, said: "2015 was a remarkable year for Fresenius with double-digit sales and earnings growth. Patient focus and an uncompromising commitment to product and service quality are key to our success. Our growth story continues. We see significant opportunities around the globe for the company’s strong and balanced healthcare portfolio, and this confidence is reflected in our new 2019 Group targets."

^{1 2015 before special items but including GranuFlo®/NaturaLyte® settlement costs ( €54 million before tax; €10 million after tax)}^{2 Net income attributable to shareholders of Fresenius SE & Co. KGaA}^{3 At comparable exchange rates; includes small and mid-size acquisitions}

Positive Group guidance for 2016
For 2016, Fresenius projects sales growth of 6% to 8% in constant currency. Net income¹ is expected to grow by 8% to 12% in constant currency.

The net debt/EBITDA² ratio is expected to be approximately 2.5 at the end of 2016.

New stretch targets for 2019³
For 2019, Group sales are expected to reach €36 billion to €40 billion. Group net income⁴ is expected to increase to €2.0 billion to €2.25 billion.

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before special items but including GranuFlo®/NaturaLyte® settlement costs}^{2 Calculated at expected annual average exchange rates, for both net debt and EBITDA; without large unannounced acquisitions}^{3 At comparable exchange rates; including small and mid-size acquisitions}^{4 Net income attributable to shareholders of Fresenius SE & Co. KGaA}

23rd consecutive dividend increase proposed
Based on the strong financial results, the Management Board will propose to the Supervisory Board a dividend increase of 25% to €0.55 per share (2014: €0.44). The total dividend distribution is expected to be €300 million.

9% sales growth in constant currency – fully in line with guidance
Group sales increased by 19% (9% in constant currency) to €27,626 million (2014: €23,231 million). Organic sales growth was 6%. Acquisitions contributed 4% and divestitures reduced sales by 1%. Positive currency translation effects (10%) were mainly driven by the Euro’s depreciation against the U.S. dollar. In Q4/2015, Group sales increased by 11% (5% in constant currency) to €7,257 million (Q4/2014: €6,520 million). Organic sales growth was 5%. Acquisitions contributed 1%, while divestitures reduced sales by 1%.

Group sales by region:

21% net income^1,2 growth in constant currency – fully in line with guidance
Group EBITDA² increased by 24% (12% in constant currency) to €5,073 million (2014: €4,095 million). Group EBIT² increased by 25% (13% in constant currency) to €3,958 million (2014: €3,158 million). The EBIT margin² increased to 14.3% (2014: 13.6%).

In Q4/2015, Group EBIT² increased by 19% (10% in constant currency) to €1,109 million (Q4/2014: €935 million), the EBIT margin² improved to 15.3% (Q4/2014: 14.3%).

Group net interest increased slightly to -€613 million (2014: -€602 million). More favourable financing terms and interest rate savings on lower debt were more than offset by currency translation effects. In Q4/2015, Group net interest of -€137 million was below the prior-year level (Q4/2014: -€171 million). Lower negative currency translation effects in Q4/2015 were more than offset by interest savings on lower debt.

The Group tax rate² increased to 29.4% (2014: 28.4%), mainly due to the higher U.S. share of earnings before tax.

Noncontrolling interest was €939 million (2014: €745 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income^1,2 increased by 31% (21% in constant currency) to €1,423 million (2014: €1,086 million). Earnings per share^1,2 increased by 30% (20% in constant currency) to €2.61 (2014: €2.01). In Q4/2015, Group net income^1,2 increased by 30% (24% in constant currency) to €414 million (Q4/2014: €318 million). Earnings per share^1,2 increased by 27% (22% in constant currency) to €0.75 (Q4/2014: €0.59).

Group net income¹ including special items increased by 27% (17% in constant currency) to €1,358 million (2014: €1,067 million). Earnings per share¹ including special items increased by 27% (16% in constant currency) to €2.50 (2014: € 1.97). In Q4/2015, Group net income¹ including special items increased by 40% (32% in constant currency) to €359 million (Q4/2014: €257 million). Earnings per share¹ including special items increased by 40% (32% in constant currency) to €0.66 (Q4/2014: €0.47).

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA}^{2 Before special items but including GranuFlo®/NaturaLyte® settlement costs ( €54 million before tax; €10 million after tax)}

Continued investment in growth

Spending on property, plant and equipment was €1,512 million (2014: €1,345 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. This corresponds to 5.5% of sales.

Total acquisition spending was €517 million (2014: €2,450 million).

Excellent cash flow development
Operating cash flow increased by 29% to €3,327 million (2014: €2,585 million) with a margin of 12.0% (2014: 11.1%). The Euro’s depreciation against the U.S. dollar positively influenced 2015 operating cash flow, while 2014 operating cash flow was reduced by the US$115¹ million payment for the W.R. Grace bankruptcy settlement. The excellent cash flow margin demonstrates the underlying strength of cash flow generation across all business segments. Operating cash flow in Q4/2015 increased by 32% to €1,176 million (Q4/2014: €890 million) with a margin of 16.2% (Q4/2014: 13.7%).

Free cash flow before acquisitions and dividends increased by 48% to €1,865 million (2014: €1,262 million), with a margin of 6.8% (2014: 5.4%). Free cash flow after acquisitions and dividends improved to €1,194 million (2014: €1,348 million).

^{1 See Annual Report 2014, page 152 f.}

Solid balance sheet structure¹
The Group’s total assets increased by 9% (3% in constant currency) to €43,170 million (Dec. 31, 2014: €39,788 million). This increase is mainly attributable to currency translation effects. Current assets grew by 9% (6% in constant currency) to €10,917 million (Dec. 31, 2014: €10,012 million). Non-current assets increased by 8% (2% in constant currency) to €32,253 million (Dec. 31, 2014: € 29,776 million).

Total shareholders’ equity increased by 16% (11% in constant currency) to €18,003 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 41.7% (Dec. 31, 2014: 38.9%).

Group debt decreased by 4% (-9% in constant currency) to €14,769 million (Dec. 31, 2014: € 15,345 million). As of December 31, 2015, the net debt/EBITDA ratio was 2.68². As of December 31, 2014, the ratio was 3.24³. EBITDA growth as well as the net debt reduction by application of meaningful free cash flow have equally contributed to this substantial decrease of the ratio.

^{1 2014 adjusted due to debt issuance cost restatement (U.S. GAAP standard ASU 2015-03)}^{2 Before special items; at LTM average exchange rates for both net debt and EBITDA}^{3 Pro forma acquisitions; before special items; at LTM average exchange rates for both net debt and EBITDA}

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. As of December 31, 2015, Fresenius Medical Care was treating 294,381 patients in 3,418 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.

6% sales growth, 2% net income growth² before GranuFlo®/NaturaLyte® settlement costs – fully in line with 2015 outlook
Adverse currency developments weigh on business outside North America
2016 outlook confirmed: 7% to 10% sales growth in constant currency and 15 to 20% net income growth³ expected

Sales increased by 6% (11% in constant currency) to US$16,738 million (2014: US$15,832 million). Organic sales growth was 6%. Acquisitions contributed 6%, while divestitures reduced sales by 1%. Currency translation effects reduced sales by 5%. In Q4/2015, sales increased by 1% (5% in constant currency) to US$4,348 million (Q4/2014: US$4,320 million).

Health Care services sales (dialysis services and care coordination) increased by 9% (13% in constant currency) to US$13,392 million (2014: US$12,250 million). Dialysis product sales decreased by 7% (increased by 4% in constant currency) to US$3,346 million (2014: US$3,582 million).

In North America, sales increased by 13% to US$11,813 million (2014: US$10,500 million). Health Care services sales grew by 13% to US$10,932 million (2014: US$9,655 million). Dialysis product sales increased by 4% to US$881 million (2014: US$845 million).

Sales outside North America decreased by 7% (increased by 9% in constant currency) to US$4,897 million (2014: US$5,265 million). Health Care services sales decreased by 5% (increased by 12% in constant currency) to US$2,459 million (2014: US$2,595 million).

Dialysis product sales decreased by 9% (increased by 6% in constant currency) to US$2,437 million (2014: US$2,670 million).

EBIT increased by 3% (8% in constant currency) to US$2,327 million (2014: US$2,255 million). The EBIT margin was 13.9% (2014: 14.2%). Based on the agreement in principle to resolve the GranuFlo®/NaturaLyte® product liability litigation, Fresenius Medical Care expects a pre-tax financial impact of US$60 million from the settlement. Adjusted for one-time items⁴, EBIT increased by 5% to US$2,388 million. In Q4/2015, EBIT remained roughly flat at US$662 million (Q4/2014: US$663 million). In constant currency, EBIT increased by 3%. The EBIT margin was 15.2% (Q4/2014: 15.4%). EBIT excluding one-time items⁵ increased by 5% to US$704 million.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA excluding one-time items⁴ increased by 2% to US$1,082 million. Net income including one-time items decreased by 2% (increased by 3% in constant currency) to US$1,029 million (2014: US$1,045 million). Net income attributable to non-controlling interest increased by 32% to US$284 million, mainly due to the strong earnings development in North America. In Q4/2015, net income excluding one-time items⁵ increased by 2% to US$347 million. Net income including one-time items decreased by 6% (-3% in constant currency) to US$317 million (Q4/2014: US$335 million).

Operating cash flow increased by 5% to US$1,960 million (2014: US$1,861 million). Operating cash flow in the prior-year period was reduced by the US$115 million⁶ payment for the W.R. Grace bankruptcy settlement. The cash flow margin was 11.7% (2014: 11.8%). In Q4/2015, operating cash flow reached an excellent US$548 million (Q4/2014: US$588 million) at a margin of 12.6% (Q4/2014: 13.6%).

Fresenius Medical Care confirms its outlook for 2016. The company expects sales to grow by 7% to 10% in constant currency and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 15% to 20%³ in 2016.

The outlook is based on current exchange rates. Savings from the global efficiency program are included, while earnings contributions from acquisitions 2015/2016 are not.

For further information, please see Fresenius Medical Care’s Press Release at
www.freseniusmedicalcare.com.

^{1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA}^{2 2015 before GranuFlo®/NaturaLyte® settlement costs (-US$37 million after tax), before divestiture of dialysis business in Venezuela (-US$27 million after tax) and European pharmaceutical business (US$11 million after tax); 2014 before closing of manufacturing plant (-US$13 million after tax)}^{3 2015 before GranuFlo®/NaturaLyte® settlement costs (-US$37 million after tax) and before acquisitions (US$9 million after tax); hence the basis for expected net income growth are US$1,057 million.}^{4 2015 before GranuFlo®/NaturaLyte® settlement costs (-US$60 million before tax; -US$37 million after tax), before divestiture of dialysis business in Venezuela (-US$26 million before tax; -US$27 million after tax) and European pharmaceutical business (US$25 million before tax; US$11 million after tax); 2014 before closing of manufacturing plant (-US$16 million before tax; -US$13 million after tax)}^{5 Q4/2015 before GranuFlo®/NaturaLyte® settlement costs (-US$60 million before tax; -US$37 million after tax), before divestiture of European pharmaceutical business (US$18 million before tax; US$7 million after tax); 2014 before closing of manufacturing plant (-US$6 million before tax; -US$6 million after tax)}^{6 See Annual Report 2014, page 152 f.}

Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

8% organic sales growth, 21% EBIT¹ growth in constant currency – fully in line with 2015 outlook
Strong operating cash flow margin of 15.3% in 2015
2016 outlook: low single-digit organic sales growth and roughly flat EBIT in constant currency expected

Sales increased by 16% (7% in constant currency) to €5,950 million (2014: €5,146 million). Organic sales growth was 8%. Acquisitions contributed 1% while divestitures reduced sales by 2%. Positive currency translation effects (9%) were mainly driven by the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q4/2015, sales increased by 10% (5% in constant currency) to €1,519 million (Q4/2014: €1,386 million). Organic sales growth was 8%.

Sales in Europe grew by 1% (organic growth: 4%) to €2,123 million (2014: €2,102 million). Sales in North America increased by 37% (organic growth: 16%) to €2,093 million (2014: €1,531 million). North American sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 16% (organic growth: 5%) to €1,141 million (2014: €987 million). Sales in Latin America/Africa grew by 13% (organic growth: 13%) to €593 million (2014: €526 million).

EBIT¹ increased by 36% (21% in constant currency) to €1,189 million (2014: €873 million). The EBIT margin¹ improved to 20.0% (2014: 17.0%). In Q4/2015, EBIT¹ increased by 33% (26% in constant currency) to €317 million (Q4/2014: €239 million). The EBIT margin¹ increased to 20.9% (Q4/2014: 17.2%). The EBIT margin was positively influenced by the Euro’s depreciation against the U.S. dollar.

Net income² increased by 43% (27% in constant currency) to €669 million (2014: €468 million). In Q4/2015, net income² increased by 45% (38% in constant currency) to €190 million (Q4/2014: €131 million).

Operating cash flow increased by 42% to €913 million (2014: €641 million) with a margin of 15.3% (2014: 12.5%). In Q4/2015, operating cash flow increased by 55% to €324 million (Q4/2014: €209 million) with a margin of 21.3% (Q4/2014: 15.1%).

Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €105 million before tax were incurred in 2015. These costs are reported in the Group segment Corporate/Other. The program led to initial cost savings of approximately €10 million in 2015. The targeted savings run-rate of approximately €40 million p.a. is expected by 2018.

For 2016, Fresenius Kabi expects to achieve low single-digit organic sales growth. EBIT³ in constant currency is expected to be roughly flat.

^{1 Before special items}^{2 Net income attributable to shareholders of Fresenius Kabi AG; before special items}^{3 2015 before special items}

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.7 million patients per year, thereof approximately 1.3 million inpatients, and operates more than 34,000 beds.

3% organic sales growth, €640 million EBIT¹ – fully in line with 2015 outlook
100 bps EBIT margin¹ increase to 11.5% in 2015
2016 outlook: 3% to 5% organic sales growth and EBIT of €670 to €700 million expected

Sales increased by 6% to €5,578 million (2014: €5,244 million). Organic sales growth was 3%. Acquisitions contributed 4%, while divestitures reduced sales by 1%. In Q4/2015, sales increased by 4% to €1,411 million (Q4/2014: €1,361 million), organic sales growth was 4%.

EBIT¹ grew by 16% to €640 million (2014: €553 million). The EBIT margin¹ increased to 11.5% (2014: 10.5%). The increase is attributable both to the successful integration of the acquired hospitals from Rhön-Klinikum AG and to continuous improvements of the established business. In Q4/2015, EBIT¹ increased by 8% to €168 million (Q4/2014: €156 million) with a margin¹ of 11.9% (Q4/2014: 11.5%).

Net income² increased by 21% to €483 million (2014: €400 million). In Q4/2015, net income² increased by 15% to €131 million (Q4/2014: €114 million).

Sales of the established hospitals grew by 3% to €5,379 million (2014: €5,222 million). EBIT¹ increased by 15% to €631 million (2014: €551 million). The EBIT margin¹ increased to 11.7% (2014: 10.6%). Sales of the newly acquired hospitals (consolidation ≤1 year) were €199 million. EBIT¹ was €9 million with a margin of 4.5%.

The integration of the hospitals acquired from Rhön-Klinikum AG remains well on track. Integration costs in 2015 were €12 million (Q4/2015: €0 million) taking the total to date to €63 million. Fresenius Helios does not expect any further integration costs. Amount (€85 million p.a.) and timing (spring 2016) of targeted near-term cost synergies are confirmed.

For 2016, Fresenius Helios projects organic sales growth of 3% to 5%. EBIT is expected to increase to €670 to €700 million.

^{1 Before special items}^{2 Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items}

Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.

6% organic sales growth, 8% EBIT growth – fully in line with 2015 outlook
Order intake of €904 million at all-time high
2016 Outlook: 5% to 10% organic sales growth and 5% to 10% EBIT growth expected

Sales increased by 7% (6% in constant currency) to €1,118 million (2014: €1,042 million). Organic sales growth was 6%. Sales in the project business increased by 3% to €575 million (2014: €558 million). Sales in the service business grew by 12% to €543 million (2014: €484 million). In Q4/2015, sales remained unchanged at €387 million compared to the prior-year. Organic sales growth was 1%.

EBIT grew by 8% to €64 million (2014: €59 million). The EBIT margin remained unchanged at 5.7%. In Q4/2015, EBIT increased by 6% to €34 million (Q4/2014: €32 million). The EBIT margin increased by 50 bps to 8.8%.

Net income¹ grew by 7% to €44 million (2014: €41 million). In Q4/2015, net income¹ increased by 4% to €24 million (Q4/2014: €23 million).

Order intake increased to €904 million (2014: €840 million), reaching an all-time high. As of December 31, 2015, order backlog was €1,650 million (Dec. 31, 2014: €1,398 million).

For 2016, Fresenius Vamed expects organic sales growth in the range of 5% to 10% and EBIT growth of 5% to 10%.

^{1 Net income attributable to shareholders of VAMED AG}

Press Conference
As part of the publication of the results for fiscal year 2015, a press conference will be held on February 24, 2016 at 10 a.m. CET. You are cordially invited to follow the press conference in a live broadcast over the Internet at www.fresenius.com/media. Following the press conference, a replay will be available on our website.

This release 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 in this release.

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Fresenius

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History

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Mon, 10/01/2012 - 12:00

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Operated by the Hirsch Pharmacy under Dr. Eduard Fresenius, a service for delivering products by automobile was something special at the time the company was founded in Frankfurt.

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Fresenius has put its new website online: www.fresenius.com. The relaunched website combines technology and design in a modern, user-friendly Internet format. The content has been updated and rearranged, with easy-to-use navigation. Powerful photographs on the homepage will guide visitors to interesting topics. The responsive design optimizes the display of all content on mobile devices and ensures quick loading times.

Under the “Stories” menu point, visitors can learn more about Fresenius’ patients, employees, business locations and operations. The stories are not only about facts, figures and business results, but tell a broader public about the company’s values and aspirations.

Patients, investors and journalists will find other relevant information presented in dedicated chapters. A new feature for journalists and other media representatives is the “Media Center” page, where Fresenius is providing photographs, videos and other materials for editorial use.

Job seekers and applicants can find all the information they need about Fresenius as an employer, along with job postings and additional services, under the Fresenius Careers website, which has also been relaunched. www.career.fresenius.com now features a new, responsive design, embedded social media channels, and an improved menu structure and user interface.

The application process has been simplified. Job candidates can now execute the entire process – from checking for openings to completing an application – on their tablet or smartphone.

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Moody’s Investors Service has upgraded the corporate credit rating of Fresenius from Ba1 to Baa3 with a stable outlook.

The upgrade reflects Moody's view that Fresenius' business profile has improved over the last years supported by higher business and geographical diversification and increased scale as well as a strong track record of profitable growth and deleveraging post acquisitions.

In January 2015, Standard & Poor’s upgraded the corporate credit rating of Fresenius from previously BB+ to BBB- with a stable outlook.

Fresenius continues to view itself as an active consolidator in its markets and will continue to focus on financing acquisitions primarily with debt.

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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Text as PDF document (PDF, 32 KB)

Moody’s Investors Service has upgraded the corporate credit rating of Fresenius from Ba1 to Baa3 with a stable outlook.

In January 2015, Standard & Poor’s upgraded the corporate credit rating of Fresenius from previously BB+ to BBB- with a stable outlook.

Fresenius continues to view itself as an active consolidator in its markets and will continue to focus on financing acquisitions primarily with debt.

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

Documents

Text as PDF document (PDF, 221 KB)

If no timeframe is specified, information refers to the first nine months of 2015.

For a detailed overview of special items please see the reconciliation tables on pages 17-18.

Q3/2015:

Sales €6.9 billion (+16% at actual rates, +7% in constant currency)
EBIT¹ €1,027 million (+25% at actual rates, +12% in constant currency)
Net income² €367 million (+31% at actual rates, +20% in constant currency)

Q1-3/2015:

Sales €20.4 billion (+22% at actual rates, +11% in constant currency)
EBIT¹ €2.8 billion (+28% at actual rates, +14% in constant currency)
Net income² €1,009 million (+31% at actual rates, +19% in constant currency)

Ulf Mark Schneider, CEO of Fresenius, said: “Our strong growth trend continued with double-digit constant currency sales and earnings growth in the first nine months. All business segments contributed to the excellent financial results. Fresenius Kabi in particular stood out, benefiting from drug shortages and new product launches in the U.S. market. We raise our Group earnings guidance for 2015 and remain optimistic about the positive fundamentals in our markets.”

^{1 Before special items}^{2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items}

2015 Group earnings guidance¹ raised
Based on the Group’s excellent financial results in the first nine months of 2015 and strong prospects for the remainder of the year, Fresenius raises its 2015 Group earnings guidance. Net income² is now expected to grow by 20% to 22% in constant currency. Previously, Fresenius expected net income² growth of 18% to 21% in constant currency. The company fully confirms its Group sales guidance. Sales are expected to increase by 8% to 10% in constant currency.

The net debt/EBITDA³ ratio is now expected to be below 3.0 at the end of 2015. Previously, Fresenius expected the ratio to be approximately 3.0.

^{1 Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€27.4 billion and net income of ~€1.42 billion, at the lower end of the respective guidance range.}^{2 Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (€12 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items}^{3 At average exchange rates for the last twelve months for both net debt and EBITDA; without major unannounced acquisitions; before special items}

11% sales growth in constant currency
Group sales increased by 22% (11% in constant currency) to €20,369 million (Q1-3/2014: €16,711 million). Organic sales growth was 6%. Acquisitions contributed 5%. In Q3/2015, Group sales increased by 16% (7% in constant currency) to €6,940 million (Q3/2014: €5,978 million). Organic sales growth was 6%. Acquisitions contributed 2%, while divestitures reduced sales by 1%.

Group sales by region:

19% Group net income¹ growth in constant currency
Group EBITDA² increased by 26% (13% in constant currency) to €3,674 million (Q1-3/2014: €2,905 million). Group EBIT² increased by 28% (14% in constant currency) to €2,849 million (Q1-3/2014: €2,223 million). The EBIT margin² was 14.0% (Q1 3/2014: 13.3%). In Q3/2015 Group EBIT² increased by 25% (12% in constant currency) to €1,027 million (Q3/2014: €820 million), the EBIT margin² was 14.8% (Q3/2014: 13.7%).

Group net interest increased to -€476 million (Q1-3/2014: -€431 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects. In Q3/2015, Group net interest of -€146 million was slightly below the prior-year level (Q3/2014: €148 million). More favorable financing terms offset negative currency translation effects.

The Group tax rate² was 29.6% (Q1-3/2014: 29.5%). In Q3/2015, the Group tax rate was 29.7% (Q3/2014: 29.3%).

Noncontrolling interest was €661 million (Q1-3/2014: €495 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income³ before special items increased by 31% (19% in constant currency) to €1,009 million (Q1-3/2014: €768 million). Earnings per share¹ increased by 31% (19% in constant currency) to €1.86 (Q1-3/2014: €1.42). In Q3/2015, Group net income³ before special items increased by 31% (20% in constant currency) to €367 million (Q3/2014: €281 million). Earnings per share¹ increased by 31% (19% in constant currency) to €0.68 (Q3/2014: €0.52).

Group net income³ including special items increased by 23% (12% in constant currency) to €999 million (Q1-3/2014: €810 million). Earnings per share³ increased by 23% (11% in constant currency) to €1.84 (Q1-3/2014: € 1.50). In Q3/2015, Group net income³ including special items increased by 29% (18% in constant currency) to €357 million (Q3/2014: €276 million). Earnings per share³ increased by 29% (18% in constant currency) to €0.66 (Q3/2014: €0.51).

A reconciliation to earnings according to U.S. GAAP can be found on pages 17-18 in the pdf of this Investor News.

^{1 Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items}^{2 Before special items}^{3 Net income attributable to shareholders of Fresenius SE & Co. KGaA}

Continued investment in growth
Spending on property, plant and equipment was €950 million (Q1-3/2014: €854 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €272 million (Q1-3/2014: €1,861 million).

Strong cash flow development
Operating cash flow increased by 27% to €2,151 million (Q1-3/2014: €1,695 million) with a margin of 10.6% (Q1-3/2014: 10.1%). Operating cash flow in the prior-year period was reduced by the US$115 million¹ payment for the W.R. Grace bankruptcy settlement. Operating cash flow in Q3/2015 reached a very strong €900 million, but could not quite match the exceptional prior-year quarter (Q3/2014: €945 million). The same applies to the cash flow margin of 13.0% (Q3/2014: 15.8%).

Net capital expenditure increased to €932 million (Q1-3/2014: €848 million). Free cash flow before acquisitions and dividends improved to €1,219 million (Q1-3/2014: €847 million). Free cash flow after acquisitions and dividends increased to €574 million (Q1 3/2014: €1,154 million).

^{1 See Annual Report 2014, page 152 f.}

Solid balance sheet structure
The Group’s total assets increased by 6% (2% in constant currency) to €42,169 million (Dec. 31, 2014: €39,897 million). Current assets grew by 5% (3% in constant currency) to €10,550 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 6% (1% in constant currency) to €31,619 million (Dec. 31, 2014: € 29,869 million).

Total shareholders’ equity increased by 11% (7% in constant currency) to €17,170 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.7% (Dec. 31, 2014: 38.8%).

Group debt decreased by 1% (-5% in constant currency) to €15,237 million (Dec. 31, 2014: € 15,454 million). As of September 30, 2015, the net debt/EBITDA ratio was 2.93¹ (2.89¹ at LTM average exchange rates for both net debt and EBITDA).

^{1 Pro forma acquisitions; before special items}

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. As of September 30, 2015, Fresenius Medical Care was treating 290,250 patients in 3,402 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.

Strong Q3 sales growth in North America
Adverse currency developments and special items weigh on business outside North America
2015 outlook confirmed

Sales increased by 8% (13% in constant currency) to US$12,390 million (Q1-3/2014: US$11,511 million). Organic sales growth was 7%. Acquisitions contributed 7%, while divestitures reduced sales by 1%. Currency effects reduced sales by -5%. In Q3/2015, sales increased by 3% (9% in constant currency) to US$4,231 million (Q3/2014: US$4,113 million).

Health Care services sales (dialysis services and care coordination) increased by 11% (15% in constant currency) to US$9,929 million (Q1-3/2014: US$8,928 million). Dialysis product sales decreased by 5% (increased by 7% in constant currency) to US$2,461 million (Q1 3/2014: US$2,583 million).

In North America sales increased by 15% to US$8,730 million (Q1-3/2014: US$7,624 million). Health Care services sales grew by 15% to US$8,087 million (Q1-3/2014: US$7,015 million). Dialysis product sales increased by 6% to US$643 million (Q1-3/2014: US$609 million).

Sales outside North America decreased by 5% (increased by 12% in constant currency) to US$3,639 million (Q1-3/2014: US$3,843 million). Regional financial results were impacted by special items². Health Care services sales decreased by 4% (increased by 15% in constant currency) to US$1,842 million (Q1-3/2014: US$1,913 million). Dialysis product sales decreased by 7% (increased by 8% in constant currency) to US$1,797 million (Q1-3/2014: US$1,930 million).

EBIT increased by 5% (10% in constant currency) to US$1,665 million (Q1-3/2014: US$1,591 million). The EBIT margin was 13.4% (Q1-3/2014: 13.8%). Adjusted for special items³ EBIT increased by 5% to US$1,683 million. In Q3/2015, EBIT increased by 4% (8% in constant currency) to US$614 million (Q3/2014: US$590 million). The EBIT margin increased to 14.5% (Q3/2014: 14.3%). EBIT excluding special items³ increased by 5% to $632 million.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA of US$713 million was at prior-year level (Q1-3/2014: US$710 million). Net income attributable to non-controlling interest increased by 41% to US$207 million, mainly due to the strong earnings development in North America. In constant currency net income increased by 6%. Net income excluding special items⁴ increased by 3% to US$735 million. In Q3/2015, net income decreased by 3% (-1% in constant currency) to US$262 million (Q3/2014: US$271 million). Net income excluding special items⁴ increased by 2% to US$284 million.

Operating cash flow increased by 11% to US$1,412 million (Q1-3/2014: US$1,274 million). Operating cash flow in the prior-year period was reduced by the US$115 million⁵ payment for the W.R.Grace bankruptcy settlement. The cash flow margin increased to 11.4% (Q1 3/2014: 11.1%). In Q3/2015, operating cash flow reached a very strong US$579 million, but could not match the exceptional prior-year quarter (Q3/2014: US$712 million). The same applies to the cash flow margin of 13.7% (Q3/2014: 17.3%).

Fresenius Medical Care confirms its outlook for 2015. The company expects sales to grow by 5% to 7%, which equals a growth rate of 10% to 12% in constant currency. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0% to 5% in 2015.

The outlook is based on current exchange rates. Savings from the global efficiency program are included, while earnings contributions from potential acquisitions are not. The outlook reflects further operating cost investments within the Care Coordination segment.

For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.

^{1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA}^{2 Divestiture of dialysis business in Venezuela and European pharmaceutical business}^{3 2015 before divestiture of dialysis business in Venezuela (-US$26 million before tax) and European pharmaceutical business (US$8 million before tax); 2014 before closing of manufacturing plant (-US$11 million before tax)}^{4 2015 before divestiture of dialysis business in Venezuela (-US$27 million after tax) and European pharmaceutical business (US$5 million after tax); 2014 before closing of manufacturing plant ( US$7 million after tax)}^{5 See Annual Report 2014, page 152 f.}

10% organic sales growth in Q3
19% constant currency EBIT1 growth in Q3
2015 outlook: organic sales growth of ~8% and constant currency EBIT1 growth of 19% to 22% expected

Sales increased by 18% (8% in constant currency) to €4,431 million (Q1-3/2014: €3,760 million). Organic sales growth was 9%. Acquisitions contributed 1% while divestitures reduced sales by 2%. Positive currency translation effects (10%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan. In Q3/2015, sales increased by 16% (9% in constant currency) to €1,499 million (Q3/2014: €1,294 million). Organic sales growth was 10%.

Sales in Europe grew by 2% (organic growth: 4%) to €1,566 million (Q1-3/2014: €1,538 million). Sales in North America increased by 39% (organic growth: 16%) to €1,555 million (Q1-3/2014: €1,118 million). North American sales growth was driven by persisting IV drug shortages and new product launches. Asia-Pacific sales increased by 19% (organic growth: 4%) to €862 million (Q1-3/2014: €723 million). Sales in Latin America/Africa grew by 18% (organic growth: 12%) to €448 million (Q1-3/2014: €381 million).

EBIT¹ increased by 38% (19% in constant currency) to €872 million (Q1-3/2014: €634 million). The EBIT margin¹ was 19.7% (Q1-3/2014: 16.9%). In Q3/2015, EBIT¹ increased by 35% (19% in constant currency) to €301 million (Q3/2014: €223 million). The EBIT margin¹ was 20.1% (Q3/2014: 17.2%).

Net income² increased by 42% (23% in constant currency) to €479 million (Q1-3/2014: €337 million). In Q3/2015, net income² increased by 42% (25% in constant currency) to €170 million (Q3/2014: €120 million).

Operating cash flow increased by 36% to €589 million (Q1-3/2014: €432 million) with a margin of 13.3% (Q1-3/2014: 11.5%). In Q3/2015, operating cash flow increased to €235 million (Q3/2014: €217 million) with a margin of 15.7% (Q3/2014: 16.8%).

Fresenius Kabi’s initiatives to increase production efficiency and streamline administrative structures are well on track. Costs of €50 million before tax were incurred in the first nine months of 2015 (Q3/2015: €10 million). The remainder of approx. €50 million will be recorded in Q4/2015. These costs are reported in the Group segment Corporate/Other.

Fresenius Kabi raises its outlook³ for 2015 and now expects organic sales growth of ~8% and constant currency EBIT¹ growth in the range of 19% to 22% with an implied EBIT margin¹ of approximately 20.0%. Previously, Fresenius Kabi projected organic sales growth of 6% to 8% and constant currency EBIT¹ growth in the range of 18% to 21% with an implied EBIT margin in the range of 19.0% to 20.0%.

^{1 Before special items}^{2 Net income attributable to shareholders of Fresenius Kabi AG; before special items}^{3 Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€5.9 billion (equivalent to 8% organic sales growth) and EBIT¹ of ~€1.18 billion (equivalent to the lower end of the expected range)}

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.5 million patients per year, thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

12% EBIT¹ growth in Q3
20 bps sequential EBIT margin¹ increase
2015 outlook confirmed

Sales increased by 7% to €4,167 million (Q1-3/2014: €3,883 million). Organic sales growth was 3% (Q1-3/2014: 4%). Acquisitions contributed 5% while divestitures reduced sales by 1%. In Q3/2015, sales increased by 2% to €1,393 million (Q3/2014: €1,362 million), organic sales growth was 2% (Q3/2014: 6%).

EBIT¹ grew by 19% to €472 million (Q1-3/2014: €397 million). The EBIT margin¹ increased to 11.3% (Q1-3/2014: 10.2%). In Q3/2015, EBIT¹ increased by 12% to €165 million (Q3/2014: €147 million). Sequentially, the EBIT margin¹ increased by 20 bps to 11.8%.

Net income² increased by 23% to €352 million (Q1-3/2014: €286 million). In Q3/2015, net income² increased by 18% to €126 million (Q3/2014: €107 million).

Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 3% to €3,970 million (Q1-3/2014: €3,861 million). EBIT¹ increased by 17% to €463 million (Q1-3/2014: €395 million). The EBIT margin¹ increased to 11.7% (Q1-3/2014: 10.2%). Sales of the acquired hospitals consolidated for less than one year were €197 million. EBIT¹ was €9 million with a margin of 4.6%.

The integration of the hospitals acquired from Rhön-Klinikum AG remains well on track. Integration costs were €12 million in the first nine months of 2015 (Q3/2015: €4 million) taking the total to date to €63 million. Fresenius Helios does not expect any further integration costs. Amount (€85 million p.a.) and timing (spring 2016) of targeted near-term cost synergies are confirmed.

Fresenius Helios confirms its outlook for 2015, projecting organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT¹ is expected to increase to €630 to €650 million.

Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (€12 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate/Other.

^{1 Before special items}^{2 Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items}

Q3 organic sales growth driven by strong service business
Q3 order intake €192 million
2015 outlook: organic sales growth now projected to reach 5% to 10%, EBIT growth expectation of 5% to 10% confirmed

Sales increased by 12% (11% in constant currency) to €731 million (Q1-3/2014: €655 million). Organic sales growth was 9%. Acquisitions contributed 2%. Sales in the project business increased by 9% to €333 million (Q1-3/2014: €306 million). Sales in the service business grew by 14% to €398 million (Q1-3/2014: €349 million). In Q3/2015, sales increased by 4% to €268 million (Q3/2014: €257 million). Organic sales growth was 4%.

EBIT grew by 11% to €30 million (Q1-3/2014: €27 million). The EBIT margin remained unchanged at 4.1% (Q1-3/2014: 4.1%). In Q3/2015, EBIT increased by 17% to €14 million (Q3/2014: €12 million). Sequentially, the EBIT margin increased by 170 bps to 5.2%.

Net income¹ grew by 11% to €20 million (Q1-3/2014: €18 million). In Q3/2015, net income¹ increased by 25% to €10 million (Q3/2014: €8 million).

Order intake reached a very strong €476 million (Q1-3/2014: €678 million). The prior-year period was boosted by the major project for the modernization of the University Hospital of Schleswig-Holstein/Germany. As of September 30, 2015, order backlog was €1,528 million (Dec. 31, 2014: €1,398 million).

Based on the strong sales development in the first nine months of 2015, Fresenius Vamed narrows its 2015 organic sales growth outlook to a range of 5% to 10%. Previously, Fresenius Vamed expected single-digit organic sales growth. Fresenius Vamed fully confirms its EBIT outlook and projects EBIT growth of 5% to 10%.

^{1 Net income attributable to shareholders of VAMED AG}

Conference Call
As part of the publication of the results for the first nine months of 2015, a conference call will be held on October 29, 2015 at 2 p.m. CET (9 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, see Investor Relations, Presentations. Following the call, a replay will be available on our website.

Documents

Text as PDF document (PDF, 139 KB)

If no timeframe is specified, information refers to the first nine months of 2015.

For a detailed overview of special items please see the reconciliation tables on pages 17-18 in the pdf file of this Investor News.

Q3/2015:

Sales €6.9 billion (+16% at actual rates, +7% in constant currency)
EBIT¹ €1,027 million (+25% at actual rates, +12% in constant currency)
Net income² €367 million (+31% at actual rates, +20% in constant currency)

Q1-3/2015:

Sales €20.4 billion (+22% at actual rates, +11% in constant currency)
EBIT¹ €2.8 billion (+28% at actual rates, +14% in constant currency)
Net income² €1,009 million (+31% at actual rates, +19% in constant currency)

¹ Before special items² Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items

The net debt/EBITDA³ ratio is now expected to be below 3.0 at the end of 2015. Previously, Fresenius expected the ratio to be approximately 3.0.

¹ Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€27.4 billion and net income of ~€1.42 billion, at the lower end of the respective guidance range.² Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (€12 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items³ At average exchange rates for the last twelve months for both net debt and EBITDA; without major unannounced acquisitions; before special items

Group sales by region:

The Group tax rate² was 29.6% (Q1-3/2014: 29.5%). In Q3/2015, the Group tax rate was 29.7% (Q3/2014: 29.3%).

Noncontrolling interest was €661 million (Q1-3/2014: €495 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

A reconciliation to earnings according to U.S. GAAP can be found on pages 17-18 in the pdf of this Investor News.

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items² Before special items³ Net income attributable to shareholders of Fresenius SE & Co. KGaA

¹ See Annual Report 2014, page 152 f.

Total shareholders’ equity increased by 11% (7% in constant currency) to €17,170 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.7% (Dec. 31, 2014: 38.8%).

¹ Pro forma acquisitions; before special items

Business Segments

Strong Q3 sales growth in North America
Adverse currency developments and special items weigh on business outside North America
2015 outlook confirmed

For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.

¹ Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA² Divestiture of dialysis business in Venezuela and European pharmaceutical business³ 2015 before divestiture of dialysis business in Venezuela (-US$26 million before tax) and European pharmaceutical business (US$8 million before tax); 2014 before closing of manufacturing plant (-US$11 million before tax)⁴ 2015 before divestiture of dialysis business in Venezuela (-US$27 million after tax) and European pharmaceutical business (US$5 million after tax); 2014 before closing of manufacturing plant ( US$7 million after tax)⁵ See Annual Report 2014, page 152 f.

10% organic sales growth in Q3
19% constant currency EBIT1 growth in Q3
2015 outlook: organic sales growth of ~8% and constant currency EBIT1 growth of 19% to 22% expected

¹ Before special items² Net income attributable to shareholders of Fresenius Kabi AG; before special items³ Based on the average exchange rates through October 23 and the exchange rates of October 23 applied to the remainder of the year, this implies sales of ~€5.9 billion (equivalent to 8% organic sales growth) and EBIT¹ of ~€1.18 billion (equivalent to the lower end of the expected range)

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats more than 4.5 million patients per year, thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

12% EBIT¹ growth in Q3
20 bps sequential EBIT margin¹ increase
2015 outlook confirmed

Net income² increased by 23% to €352 million (Q1-3/2014: €286 million). In Q3/2015, net income² increased by 18% to €126 million (Q3/2014: €107 million).

Fresenius Helios confirms its outlook for 2015, projecting organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT¹ is expected to increase to €630 to €650 million.

¹ Before special items² Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items

Q3 organic sales growth driven by strong service business
Q3 order intake €192 million
2015 outlook: organic sales growth now projected to reach 5% to 10%, EBIT growth expectation of 5% to 10% confirmed

Net income¹ grew by 11% to €20 million (Q1-3/2014: €18 million). In Q3/2015, net income¹ increased by 25% to €10 million (Q3/2014: €8 million).

¹ Net income attributable to shareholders of VAMED AG

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

Documents

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Q1/2015:

Sales €6.5 billion (+24% at actual rates, +13% in constant currency)
EBIT¹ €851 million (+32% at actual rates, +18% in constant currency)
Net income² €292 million (+28% at actual rates, +16% in constant currency)

Ulf Mark Schneider, CEO of Fresenius, said: “Fresenius had an excellent start into the year, even before taking into account very favorable exchange rate effects. All four business segments contributed to the strong financial results, with Fresenius Kabi’s performance in particular standing out. We expect continued momentum in sales and profit growth in the coming quarters and raise our Group earnings guidance for 2015.”

¹ Before special items
² Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items

2015 Group earnings guidance¹ raised
Based on the Group’s excellent financial results in the first quarter of 2015 and positive prospects for the remainder of the year, Fresenius raises its 2015 earnings guidance. For 2015, Fresenius now expects net income² growth of 13% to 16% in constant currency. Previously, the company expected net income² growth of 9% to 12% in constant currency. The company fully confirms its Group sales guidance. Sales are expected to increase by 7% to 10% in constant currency.

The net debt/EBITDA³ ratio is expected to be approximately 3.0 at the end of 2015.

13% sales growth in constant currency
Group sales in the first quarter increased by 24% (13% in constant currency) to €6,483 million (Q1/2014: €5,212 million). Organic sales growth was 6%. Acquisitions contributed 8%, while divestitures reduced sales by 1%.

Group sales by region:

¹ Based on the average exchange rates through April 24 and the exchange rates of April 24 applied to the remainder of the year, this implies sales of ~€27.6 billion and net income of ~€1.34 billion, at the lower end of the guidance range.
² Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2015 before integration costs (~€10 million before tax for hospitals acquired from Rhön-Klinikum AG), before costs for the efficiency program at Fresenius Kabi (~€100 million before tax), and before the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax); 2014 before special items
³ At annual average exchange rates for both net debt and EBITDA; without major acquisitions; before special items

16% net income¹ growth in constant currency
Group EBITDA² increased by 29% (15% in constant currency) to €1,115 million (Q1/2014: €867 million). Group EBIT² increased by 32% (18% in constant currency) to €851 million (Q1/2014: €643 million). The EBIT margin was 13.1% (Q1/2014: 12.3%).

Group net interest increased to -€165 million (Q1/2014: -€138 million). Interest rate savings were more than offset by interest on incremental debt for acquisitions completed in 2014 and by currency translation effects.

The Group tax rate² increased to 30.2% (Q1/2014: 26.3%). In the first quarter of 2014, a one-time item at Fresenius Medical Care had positively influenced the Group tax rate.

Noncontrolling interest was €187 million (Q1/2014: €144 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income³ before special items increased by 28% (16% in constant currency) to €292 million (Q1/2014: €228 million). Earnings per share³ increased by 28% (16% in constant currency) to €0.54 (Q1/2014: €0.42).

Group net income³ including special items increased by 28% (17% in constant currency) to €317 million (Q1/2014: €248 million). Earnings per share³ increased by 26% (17% in constant currency) to € 0.58 (Q1/2014: € 0.46).

A reconciliation to earnings according to U.S. GAAP can be found on page 14 in the pdf of this Investor News.

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items
² Before special items
³ Net income attributable to shareholders of Fresenius SE & Co. KGaA

Continued investment in growth
Spending on property, plant and equipment was €273 million (Q1/2014: €234 million), primarily for the modernization and expansion of dialysis clinics, production facilities and hospitals. Total acquisition spending was €104 million (Q1/2014: €924 million).

Increase in operating cash flow
Operating cash flow increased to €531 million (Q1/2014: €140 million). The cash flow margin increased to 8.2% (Q1/2014: 2.7%). Operating cash flow in the first quarter of 2014 was affected by the payment for the W.R. Grace bankruptcy settlement of US$115 million¹.

Net capital expenditure increased to €273 million (Q1/2014: €243 million). Free cash flow before acquisitions and dividends improved to €258 million (Q1/2014: -€103 million). Free cash flow after acquisitions and dividends increased to €256 million (Q1/2014: €1,006 million).

¹ See Annual Report 2014, page 152 f.

Solid balance sheet structure
The Group’s total assets increased by 8% (0% in constant currency) to €43,032 million (Dec. 31, 2014: €39,897 million). Current assets grew by 7% (0% in constant currency) to €10,688 million (Dec. 31, 2014: €10,028 million). Non-current assets increased by 8% (1% in constant currency) to €32,344 million (Dec. 31, 2014: € 29,869 million).

Total shareholders’ equity increased by 12% (3% in constant currency) to €17,271 million (Dec. 31, 2014: €15,483 million). The equity ratio increased to 40.1% (Dec. 31, 2014: 38.8%).

Group debt grew by 3% (decreased by 3% in constant currency) to €15,940 million (Dec. 31, 2014: € 15,454 million).

As of March 31, 2015, the net debt/EBITDA ratio was 3.40¹ (3.12¹ at LTM average exchange rates for both net debt and EBITDA).

¹ Pro forma acquisitions; before special items

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure. As of March 31, 2015, Fresenius Medical Care was treating 286,768 patients in 3,396 dialysis clinics.

Excellent sales growth of 11%
Strong cash flow margin of 11.3%
2015 outlook confirmed

Sales increased by 11% (17% in constant currency) to US$3,960 million (Q1/2014: US$3,564 million). Organic sales growth was 7%. Acquisitions contributed 10%. Adverse currency effects reduced sales by 6%.

Health Care services sales (dialysis services and care coordination) increased by 14% (18% in constant currency) to US$3,182 million (Q1/2014: US$2,782 million). Dialysis product sales were US$778 million (Q1/2014: US$782 million), an increase by 11% in constant currency.

In North America, sales increased by 16% to US$2,771 million (Q1/2014: US$2,393 million). Health Care services sales grew by 17% to US$2,571 million (Q1/2014: US$2,201 million). Dialysis product sales increased by 4% to US$200 million (Q1/2014: US$192 million).

Sales outside North America grew by 2% (18% in constant currency) to US$1,180 million (Q1/2014: US$1,161 million). Health Care services sales increased by 5% (24% in constant currency) to US$611 million (Q1/2014: US$581 million). Dialysis product sales decreased by 2% (increased by 13% in constant currency) to US$569 million (Q1/2014: US$580 million).

EBIT increased by 13% (21% in constant currency) to US$504 million (Q1/2014: US$445 million) due to improvements in the operating business across all regions. The EBIT margin increased to 12.7% (Q1/2014: 12.5%).

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 2% (10% in constant currency) to US$210 million (Q1/2014: US$205 million).

Operating cash flow increased to US$447 million (Q1/2014: US$112 million, affected by the payment for the W.R. Grace bankruptcy settlement of US$115 million²). The cash flow margin increased to 11.3% (Q1/2014: 3.2%).

Fresenius Medical Care confirms its outlook for 2015. The company expects sales to grow at 5% to 7%, which at constant currency is a growth rate of 10% to 12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase 0% to 5% in 2015.

Savings from the global efficiency program are included, while potential acquisitions are not. The outlook reflects further operating cost investments within the Care Coordination segment. The outlook is based on exchange rates prevailing at the beginning of 2015.

¹ Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
² See Annual Report 2014, page 152 f.

For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.

Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

5% organic sales growth at the upper end of expected range
10% EBIT growth in constant currency
North American outlook significantly improved
2015 outlook raised

Sales increased by 15% (5% in constant currency) to €1,394 million (Q1/2014: €1,213 million). Organic sales growth was 5%. Acquisitions contributed 1% while divestitures reduced sales by 1%. Positive currency translation effects (10%) were mainly related to the Euro’s depreciation against the U.S. dollar and the Chinese yuan.

Sales in Europe grew by 4% (organic growth: 5%) to €518 million (Q1/2014: €500 million). Sales in North America increased by 24% (organic growth: 3%) to €473 million (Q1/2014: €382 million). Sales growth was boosted by IV drug shortages easing more slowly than expected. Asia-Pacific sales increased by 20% (organic growth: 4%) to €268 million (Q1/2014: €222 million). Sales in Latin America/Africa grew by 24% (organic growth: 8%) to €135 million (Q1/2014: €109 million).

EBIT¹ increased by 28% (10% in constant currency) to €257 million (Q1/2014: €201 million). The EBIT margin was 18.5% (Q1/2014: 16.6%).

Net income² increased by 32% (14% in constant currency) to €140 million (Q1/2014: €106 million).

Operating cash flow increased by 98% to €83 million (Q1/2014: €42 million) with a margin of 6.0% (Q1/2014: 3.5%).

Fresenius Kabi’s initiative to increase production efficiency and streamline administrative structures is well on track. Costs of €10 million before tax were incurred in the first quarter of 2015. These costs are reported in the Group segment Corporate/Other.

Fresenius Kabi raises its outlook³ for 2015 and now expects organic sales growth of 4% to 7% and EBIT growth in constant currency in the range of 11% to 14%. The implied EBIT margin is 18.5% to 19.5%. Previously, Fresenius Kabi projected organic sales growth of 3% to 5% and an EBIT growth in constant currency in the range of 4% to 6% with an implied EBIT margin in the range of 17.5% to 18.5%.

Fresenius Kabi’s outlook excludes ~€100 million costs before tax for the efficiency program. For segment reporting purposes, these costs will not be reported in the Fresenius Kabi segment but as special items in the Group segment Corporate/Other.

¹ Before special items
² Net income attributable to shareholders of Fresenius Kabi AG; before special items
³ Based on the average exchange rates through April 24 and the exchange rates of April 24 applied to the remainder of the year, this implies sales of ~€5.8 billion and EBIT of ~€1.11 billion, at the lower end of the expected range

Fresenius Helios
Fresenius Helios is Germany’s largest hospital operator. HELIOS operates 111 hospitals, thereof 87 acute care clinics (including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal) and 24 post-acute care clinics. HELIOS treats approximately 4.5 million patients per year, thereof 1.2 million inpatients, and operates more than 34,000 beds.

4% organic sales growth fully in line with expectations
200 bps EBIT margin increase in established hospital business
2015 outlook fully confirmed

Sales increased by 13% to €1,391 million (Q1/2014: €1,227 million). Organic sales growth was 4% (Q1/2014: 4%). Acquisitions contributed 10% while divestitures reduced sales by 1%.

EBIT¹ grew by 29% to €147 million (Q1/2014: €114 million). The EBIT margin increased to 10.6% (Q1/2014: 9.3%).

Net income² increased by 39% to €107 million (Q1/2014: €77 million).

Sales of the established hospitals, including the former Rhön-Klinikum facilities consolidated for more than one year, grew by 4% to €1,263 million (Q1/2014: €1,214 million). EBIT¹ increased by 27% to €143 million (Q1/2014: €113 million). The EBIT margin increased to 11.3% (Q1/2014: 9.3%). Sales of the acquired hospitals³ consolidated for less than one year were €128 million. EBIT¹ was €4 million with a margin of 3.1%.

The integration of the hospitals acquired from Rhön-Klinikum AG is fully on track. Total integration costs for 2014 and 2015 are confirmed at approximately €60 million. Integration costs were €2 million in Q1/2015 taking the total to date to €53 million. Amount and timing of projected near-term cost synergies (€85 million p.a.) are also confirmed.

Fresenius Helios fully confirms its outlook for 2015. Fresenius Helios projects organic sales growth of 3% to 5% and reported sales growth of 6% to 9%. EBIT is expected to increase to €630 to €650 million.

Fresenius Helios’ outlook excludes integration costs for the hospitals acquired from Rhön-Klinikum AG (~€10 million before tax) and the disposal gains from the divestment of two HELIOS hospitals (€34 million before tax). For segment reporting purposes, these items will not be reported in the Fresenius Helios segment, but as special items in the Group segment Corporate/Other.

¹ Before special items
² Net income attributable to shareholders of HELIOS Kliniken GmbH; before special items
³ Hospitals acquired from Rhön-Klinikum AG

Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide.

Service business driving organic sales growth
Excellent order intake of €192 million
2015 outlook confirmed

Sales increased by 9% (8% in constant currency) to €208 million (Q1/2014: €191 million). Organic sales growth was 6%. Acquisitions contributed 2%. Sales in the project business were unchanged at €80 million (Q1/2014: € 80 million). Sales in the service business grew by 15% to €128 million (Q1/2014: € 111 million).

EBIT grew by 17% to €7 million (Q1/2014: €6 million) with a margin of 3.4% (Q1/2014: 3.1%).

Net income¹ was unchanged at €4 million (Q1/2014: €4 million).

Order intake increased by 67% to €192 million (Q1/2014: €115 million). As of March 31, 2015, order backlog reached a new all-time high of €1,510 million (Dec. 31, 2014: €1,398 million).

Fresenius Vamed confirms its outlook for 2015 and expects to achieve single-digit organic sales growth and EBIT growth of 5% to 10%.

¹ Net income attributable to shareholders of VAMED AG

Conference Call
As part of the publication of the results for the first quarter of 2015, a conference call will be held on April 30, 2015 at 2 p.m. CEDT (8 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, see Investor Relations, Presentations. Following the call, a replay will be available on our website.

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Notification published in accordance with § 15 German Securities Trading Act (WpHG)

Group sales increased by 13% in constant currency and by 15% at actual rates to €14,164 million (2008: €12,336 million). Organic sales growth was 8%. Acquisitions contributed a further 5%. Currency translation had a positive impact of 2%.

Group operating income (EBIT) grew by 17% in constant currency and by 19% at actual rates to €2,054 million (2008 adjusted for special items related to the acquisition of APP Pharmaceuticals: €1,727 million).

Adjusted Group net income¹ grew both in constant currency and at actual rates by 14% to €514 million (2008 adjusted for special items related to the acquisition of APP Pharmaceuticals: €450 million). Adjusted earnings per ordinary share increased to €3.18 and adjusted earnings per preference share increased to €3.19 (2008 adjusted: ordinary share €2.85, preference share €2.86). This represents an increase of 12% for both share classes.

Net income² (including special items) was €494 million or €3.06 per ordinary share and €3.07 per preference share.

Based on the excellent financial results the Management Board will propose to the Supervisory Board a dividend increase of 7% to €0.75 per ordinary share (2008: €0.70) and €0.76 per preference share (2008: €0.71).

For 2010, Fresenius projects further improvements in its financial results: Sales growth in constant currency is projected to be in a 7 to 9% range. Adjusted net income¹ is expected to increase by 8 to 10% in constant currency.

The Group’s US GAAP financial results as of December 31, 2009 and as of December 31, 2008 include the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Adjusted earnings represent the Group’s business operations in the reporting period. In addition, the Group’s US GAAP financial statements as of December 31, 2008 include several special items related to the acquisition of APP Pharmaceuticals.

¹ Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
² Net income attributable to Fresenius SE

(Financial statements according to US GAAP)

The Management Board
Bad Homburg v.d.H., February 24, 2010

End of note

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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN

Fresenius successfully placed US$300 million of senior unsecured notes with a maturity of 7 years.

The notes have a coupon of 4.50% and were issued at par.

The transaction was very well received by investors and substantially oversubscribed.

Fresenius US Finance II, Inc., a wholly owned subsidiary of Fresenius SE & Co. KGaA, offered the senior notes through a private placement to institutional investors.

Fresenius has applied to the Luxembourg Stock Exchange to admit the senior notes to trading on its regulated market.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States.

This announcement is an advertisement and not a prospectus. Investors should not purchase or subscribe for any securities referred to in this announcement except on the basis of information in the prospectus to be issued by the company in connection with the offering of such securities. Copies of the prospectus will, following publication, be available free of charge from Fresenius SE & Co. KGaA at Else-Kröner Strasse 1, 61352 Bad Homburg, Germany. The Notes have already been sold.

This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

This release 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 in this release.

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