DGAP-Ad hoc: Fresenius SE & Co. KGaA (St.)

Investigation into alleged breaches of FDA data integrity requirements at Akorn, Inc.;
Fresenius aims at strong growth in 2018 and confirms mid-term growth targets
INVESTIGATION AT AKORN, INC.

Fresenius is conducting an independent investigation, using external experts, into alleged breaches of FDA* data integrity requirements relating to product development at Akorn, Inc.

The Management and Supervisory Boards of Fresenius will assess the findings of that investigation. The consummation of the transaction may be affected if the closing conditions under the merger agreement are not met. Fresenius does not intend to provide further updates as the investigation proceeds.

Fresenius continues to seek FTC clearance.

*U S Food and Drug Administration

FULL YEAR 2017 RESULTS

Group sales increased by 15% (16% in constant currency) to EUR33,886 million (2016: EUR29,471 million). Organic sales growth was 6%. Acquisitions contributed 10%, currency translation had an impact of -1%.

Adjusted Group EBIT¹ increased by 14% (15% in constant currency) to EUR4,890 million (2016: EUR4,302 million). Group EBIT^{before special items increased by 12% (14% in constant currency) to EUR4,830 million (2016: EUR4,302 million).}

Adjusted Group net income^2,3 increased by 19% (21% in constant currency) to EUR1,859 million (2016: EUR1,560 million). Adjusted earnings per share^2,3 increased by 18% (19% in constant currency) to EUR3.35 (2016: EUR2.85).

Group net income^2,4 before special items increased by 16% (18% in constant currency) to EUR1,816 million (2016: EUR1,560 million). Earnings per share^2,4 before special items increased by 15% (16% in constant currency) to EUR3.28 (2016: EUR2.85).

Group net income² increased by 16% (18% in constant currency) to EUR1,814 million
(2016: EUR1,560 million). Earnings per share² increased by 15% (16% in constant currency) to EUR3.27 (2016: EUR2.85).

Based on the strong financial results, the Management Board will propose to the Supervisory Board a dividend increase of 21% to EUR0.75 per share (2016: EUR0.62).

GROUP GUIDANCE FOR 2018
For 2018, Fresenius projects sales growth⁵ of 5% to 8% in constant currency. Net income^2,6 is expected to grow by 6% to 9% in constant currency. Excluding expenditures for the further development of the biosimilars business, net income^2,7 is expected to grow by ~10% to 13% in constant currency. Group Guidance 2018 is excluding pending acquisitions of Akorn and NxStage.

MID-TERM GROWTH TARGETS 2020 CONFIRMED
Based on the strong financial results 2017, Fresenius confirms the 2020 mid-term growth targets. Group sales are expected to grow with a compounded annual growth rate (CAGR) in the range of 7.1% to 10.3%. Group net income² is projected to increase with a CAGR in the range of 8.3% to 12.6%. Mid-term growth targets 2020 are at February 2017 exchange rates and IFRS rules and including small and mid-size acquisitions.

----------------------------------------
¹ Consistent with scope of original guidance: before acquisition-related expenses, expenditures for further development of biosimilars business and FCPA provision
² Net income attributable to shareholders of Fresenius SE & Co. KGaA
³ Consistent with scope of original guidance: before acquisition-related expenses, expenditures for further development of biosimilars business, book gain from U.S. tax reform and FCPA provision
⁴ Before acquisition-related expenses, book gain from U.S. tax reform and FCPA provision
⁵ 2017 adjusted for IFRS 15 (EUR486 million at Fresenius Medical Care)
⁶ Base 2017: EUR1,816 million; 2018 before special items (acquisition-related expenses); including expenditures for further development of biosimilars business (EUR43 million after tax in FY/17 and ~EUR120 million after tax in FY/18)
⁷ Base 2017: EUR1,859 million; 2018 before special items (acquisition-related expenses); excluding expenditures for further development of biosimilars business (EUR43 million after tax in FY/17 and ~EUR120 million after tax in FY/18)
----------------------------------------

For additional information on the performance indicators used please refer to our website at https://www.fresenius.com/alternative-performance-measures.

(Financial statements according to IFRS)

Fresenius SE & Co. KGaA,
represented by Fresenius Management SE,
The Management Board

Bad Homburg v.d.H., February 26, 2018

Contact:
Markus Georgi
Senior Vice President Investor Relations
T: +49 (0) 6172 608-2485
markus.georgi@fresenius.com

End of note