DGAP-News

Fresenius Medical Care AG & Co. KGaA reports strong start to the year 2016 - Seite 3

currency impact, the business was mainly influenced by clinics sold in
Venezuela in 2015. Dialysis treatments decreased accordingly by 6%. Product
revenue decreased by 4% at constant currency to $40 million. Operating
income was at $11 million, compared to $18 million in Q1 2015. Operating
income margin decreased to 7.1% in Q1 2016 from 9.0% in Q1 2015 mainly due
to higher costs related to inflation, unfavorable foreign exchange effects
and an unfavorable impact from manufacturing production costs, partially
offset by the impact from prior year lower margin dialysis service business
in Venezuela which was subsequently divested in the third quarter of 2015.

Net interest expense in Q1 2016 was $105 million compared to $102 million
in the first quarter of 2015. The slight increase is based on a lower
interest income as a result of the repayment of interest bearing notes
receivables. Income tax expense was $138 million for the first quarter of
2016, which translates into an effective tax rate of 31.8%, substantially
lower than in Q1 2015 (34.3%). This was primarily driven by increased
tax-free income attributable to noncontrolling interest in the US and lower
tax rates in other jurisdictions.

Cash flow
In the first quarter of 2016, the company generated $180 million in net
cash provided by operating activities, representing 4% of revenue, compared
to $447 million in last year's Q1. The lower level was driven by an
adjustment in invoicing within the quarter and the timing of cash payroll
payments in the US. The number for DSO (days sales outstanding) increased
accordingly to 74 days (71 days in Q1 2015). These timing effects will have
no meaningful impact on the full year 2016.

Employees
As of March 31, 2016, Fresenius Medical Care had 104,687 employees
(full-time equivalents) worldwide, compared to 101,543 employees at the end
of March 2015. This increase was mainly attributable to our continued
organic growth.

Outlook 2016 confirmed
Based on the positive Q1 business development, Fresenius Medical Care
confirms its full year outlook 2016. The company expects a
currency-adjusted revenue growth between +7% and +10% for 2016. Net income
attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is
expected to increase by +15% to +20% over the previous year.

Conference call
Fresenius Medical Care will hold a conference call to discuss the results
of the first quarter 2016 on Tuesday, May 3, 2016 at 3.30 p.m. CEDT/ 9.30
a.m. EDT. The company invites investors to follow the live webcast of the
call at the company's website www.freseniusmedicalcare.com in the