FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Consolidated Financial Statements

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) On March 22, 2022, Fresenius Medical Care announced that the Company has entered into a definitive agreement to create an independent new company with InterWell Health and Cricket Health. The deal brings together InterWell Health's network of nephrologists, Cricket Health's technology-enabled care model, and the expertise in value based kidney care contracting of Fresenius Health Partners, the value based care division of Fresenius Medical Care North America, to create a stand-alone entity.

The Company has evaluated transactions or other events for consideration as recognized subsequent events in the financial statements through February 22, 2022. Additionally, the Company has evaluated transactions and other events that occurred through the issuance of these financial statements, April 29, 2022, for purposes of disclosure of unrecognized subsequent events. 44 FRESENIUS MEDICAL CARE HOLDINGS, INC.

Other than those individual contingent liabilities mentioned above, the current estimated amount of the Company's other known individual contingent liabilities is immaterial. (19) Subsequent events The financial statements of the Company are derived from the consolidated financial statements of Fresenius Medical Care AG & Co. KGaA, which issued its financial statements for the year ended December 31, 2021 on February 22, 2022.

The Company is subject to ongoing and future tax audits in the U.S and other jurisdictions in the ordinary course of business. Tax authorities routinely pursue adjustments to the Company's tax returns and disallowances of claimed tax deductions. When appropriate, the Company defends these adjustments and disallowances and asserts its own claims. A successful tax related claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition and results of operations.

The Company has, when appropriate, asserted its own claims, and claims for indemnification. A successful claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition, and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company's reputation and business.

Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company's reputation and business. The Company has also had claims asserted against it and has had lawsuits filed against it relating to alleged patent infringements or businesses that it has acquired or divested. These claims and suits relate both to operation of the businesses and to the acquisition and divestiture transactions.

Although the Company maintains insurance at a level which it believes to be prudent, it cannot assure that the coverage limits will be adequate or that insurance will cover all asserted claims. A successful claim against the Company or any of its subsidiaries in excess of insurance coverage could have a material adverse effect upon it and the results of its operations.

Physicians, hospitals and other participants in the health care industry are also subject to a large number of lawsuits alleging professional negligence, malpractice, product liability, worker's compensation or related claims, many of which involve large claims and significant defense costs. The Company has been and is currently subject to these suits due to the nature of its business and expects that those types of lawsuits may continue.

On occasion, the Company may identify instances where employees or other agents deliberately, recklessly or inadvertently contravene the Company's policies or violate applicable law. The actions of such persons may subject the Company and its subsidiaries to liability under the Anti-Kickback Statute, the Stark Law, the False Claims Act, Data Protection Laws, the Health Information Technology for Economic and Clinical Health Act and the Foreign Corrupt Practices Act, among other laws and comparable state laws or laws of other countries.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) beneficiaries. On those occasions, the Company must comply with applicable breach notification requirements. The Company relies upon its management structure, regulatory and legal resources, and the effective operation of its compliance program to direct, manage and monitor the activities of its employees.

On occasion, the Company or its business associates may experience a breach under the Health Insurance Portability and Accountability Act Privacy Rule and Security Rules, the EU's General Data Protection Regulation and or other similar laws ("Data Protection Laws") when there has been impermissible use, access, or disclosure of unsecured personal data or when the Company or its business associates neglect to implement the required administrative, technical and physical safeguards of its electronic systems and devices, or a data breach that results in impermissible use, access or disclosure of personal identifying information of its employees, patients and 43 FRESENIUS MEDICAL CARE HOLDINGS, INC.

The Company operates many facilities and handles the personal data of its patients and beneficiaries throughout the United States and other parts of the world and engages with other business associates to help it carry out its health care activities. In such a widespread, global system, it is often difficult to maintain the desired level of oversight and control over the thousands of individuals employed by many affiliated companies and its business associates.

By virtue of this regulatory environment, the Company's business activities and practices are subject to extensive review by regulatory authorities and private parties, and continuing audits, subpoenas, other inquiries, claims and litigation relating to the Company's compliance with applicable laws and regulations. The Company may not always be aware that an inquiry or action has begun, particularly in the case of whistleblower actions, which are initially filed under court seal.

Applicable laws or regulations may be amended, or enforcement agencies or courts may make interpretations that differ from the Company's interpretations or the manner in which it conducts its business. Enforcement has become a high priority for the federal government and some states. In addition, the provisions of the False Claims Act authorizing payment of a portion of any recovery to the party bringing the suit encourage private plaintiffs to commence whistleblower actions.

The Company completed remediation efforts with respect to one pending FDA warning letter and is awaiting confirmation as to whether the letter is now closed. The Company must also comply with the laws of the United States, including the federal Anti-Kickback Statute, the federal False Claims Act, the federal Stark Law, the federal Civil Monetary Penalties Law and the federal Foreign Corrupt Practices Act as well as other federal and state fraud and abuse laws.

If the Company does not address matters raised in warning letters or other enforcement notices to the satisfaction of the FDA and/or comparable regulatory authorities outside the U.S., these regulatory authorities could take additional actions, including product recalls, injunctions against the distribution of products or operation of manufacturing plants, civil penalties, seizures of the Company's products and/or criminal prosecution.

With respect to its development, manufacture, marketing and distribution of medical products, if such compliance is not maintained, the Company could be subject to significant adverse regulatory actions by the FDA and comparable regulatory authorities outside the U.S. These regulatory actions could include warning letters or other enforcement notices from the FDA, and/or comparable foreign regulatory authority which may require the Company to expend significant time and resources in order to implement appropriate corrective actions.

The Company, like other health care providers, insurance plans and suppliers, conducts its operations under intense government regulation and scrutiny. The Company must comply with regulations which relate to or govern the safety and efficacy of medical products and supplies, the marketing and distribution of such products, the operation of manufacturing facilities, laboratories, dialysis clinics and other health care facilities, and environmental and occupational health and safety.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) From time to time, the Company is a party to or may be threatened with other litigation or arbitration, claims or assessments arising in the ordinary course of its business. Management regularly analyzes current information including, as applicable, the Company's defenses and insurance coverage and, as necessary, provides accruals for probable liabilities for the eventual disposition of these matters.

The DaVita licensing agreement expired by its terms in 2017. As previously disclosed in the Company's financial statements, the United States Department of Justice has reviewed multiple aspects of the DaVita contract in question, including those relevant to the plaintiff's allegations. No enforcement action has resulted against the Company. Other bases of retaliation alleged by the plaintiff implicate internal personnel and privacy protection concerns that do not impact ongoing operations, and on which the Company does not comment. 42 FRESENIUS MEDICAL CARE HOLDINGS, INC.

OSHA Case No. 1-076-22-049; Kott v. National Medical Care, Inc., Case No. 22-802 (Superior Court, Suffolk County, Mass.). The plaintiff alleges in support of his demands for compensation that he was transferred to a subordinate position in the global legal department of our Parent Company, and subsequently terminated from employment as part of the FME 25 reorganization, in retaliation for legal advice he provided with respect to a licensing agreement with DaVita relating to pharmaceutical operations and products.

The subpoena appears to be related to an ongoing investigation of alleged upcoding in the urgent care industry, which has resulted in certain published settlements under the federal False Claims Act. The Company is cooperating in the investigation. On March 20 and April 12, 2022, respectively, an attorney employed as general counsel for Fresenius Medical Care Holdings, Inc. from 2013 to 2016 filed a complaint with the Occupational Safety and Health Administration ("OSHA") under the Sarbanes-Oxley Act of 2002 and other anti-retaliation statutes, and a civil lawsuit in Suffolk County, Massachusetts seeking compensation for personnel management decisions allegedly adverse to him.

On August 21, 2020, the Company was served with a subpoena from the United States Attorney for the District of Massachusetts requesting information and documents related to urgent care centers that the Company owned, operated, or controlled as part of its ChoiceOne and Medspring urgent care operations prior to its divestiture of and exit from that line of business in 2018.

Tricare administrators have acknowledged the unpublished administrative action and declined to change or abandon it. On July 8, 2020, the U.S. government filed its answer (and confirmed its position) and litigation is continuing. The court has not yet set a date for trial in this matter. The Company has imposed a constraint on revenue otherwise recognized from the Tricare program that it believes, in consideration of facts currently known, sufficient to account for the risk of this litigation.

Bio-Medical Applications of Georgia, Inc., et al. v. United States, CA 19-947, United States Court of Federal Claims. Tricare provides reimbursement for dialysis treatments and other medical care provided to members of the military services, their dependents and retirees. The litigation challenges unpublished administrative actions by Tricare administrators reducing the rate of compensation paid for dialysis treatments provided to Tricare beneficiaries based on a recasting or "crosswalking" of codes used and followed in invoicing without objection for many years.

The subject transactions include sales and purchases of dialysis facilities, dialysis-related products and pharmaceuticals, including dialysis machines and dialyzers, and contracts for certain administrative services. The Company is cooperating in the investigation. On June 28, 2019, certain of the Company subsidiaries filed a complaint against the United States seeking to recover monies owed to them by the United States Department of Defense under the Tricare program, and to preclude Tricare from recouping monies previously paid.

The Company is cooperating in the investigation. 41 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) On December 17, 2018, the Company was served with a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) as part of an investigation of allegations against DaVita, Inc. involving transactions between the Company and DaVita.

On December 12, 2017, the Company sold to Quest Diagnostics certain Shiel operations that are the subject of this Brooklyn subpoena, including the misconduct reported to the United States Attorney. Under the Quest Diagnostics sale agreement, the Company retains responsibility for responding to the Brooklyn investigation and for liabilities arising from conduct occurring after its 2013 acquisition of Shiel and prior to its sale of Shiel to Quest Diagnostics.

The Company contends that, under the asset sale provisions of its 2013 Shiel acquisition, it is not responsible for misconduct by the terminated employee or other Shiel employees prior to the date of the acquisition. The Brooklyn USAO continues to investigate a range of issues involving Shiel, including allegations of improper compensation (kickbacks) to physicians, and has disclosed that multiple sealed qui tam complaints underlie the investigation.

On February 21, 2017, the Company terminated the employee and notified the United States Attorney of the termination and its circumstances. The terminated employee's conduct is expected to result in demands for the Company to refund overpayments and to pay related penalties under applicable laws, but the monetary value of such payment demands cannot yet be reasonably estimated.

("Shiel"), which the Company acquired in October 2013. In the course of cooperating in the investigation and preparing to respond to the subpoena, the Company identified falsifications and misrepresentations in documents submitted by a Shiel salesperson that relate to the integrity of certain invoices submitted by Shiel for laboratory testing for patients in long term care facilities.

Allegations against AAC arising in districts in Connecticut, Florida and Rhode Island relating to utilization and invoicing were settled in 2015. On November 18, 2016, the Company received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) seeking documents and information relating to the operations of Shiel Medical Laboratory, Inc.

The Company is cooperating in the Brooklyn USAO investigation. The Brooklyn USAO has indicated that its investigation is nationwide in scope and is focused on whether certain access procedures performed at Azura facilities were medically unnecessary and whether certain physician assistants employed by Azura exceeded their permissible scope of practice.

On August 27, 2021, the relator appealed to the United States Court of Appeals for the Second Circuit. Beginning October 6, 2015, the United States Attorney for the Eastern District of New York (Brooklyn) has led an investigation, through subpoenas issued under the False Claims Act, of utilization and invoicing by the Company's subsidiary Azura Vascular Care for a period beginning after the Company's acquisition of American Access Care LLC ("AAC") in October 2011.

CKD Project LLC v. Fresenius Medical Care, 2014 Civ. 06646 (E.D.N.Y. November 12, 2014). The District Court unsealed the complaint, allowing the relator to proceed on its own. On August 3, 2021, the District Court granted the Company's motion to dismiss the relator's amended complaint, dismissed the case with prejudice and declined to allow further amendment.

On November 25, 2015, the Company received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) also inquiring into the Company's involvement in certain dialysis facility joint ventures in New York. On September 26, 2018, the Brooklyn USAO declined to intervene on the qui tam complaint filed under seal in 2014 that gave rise to this investigation.

On August 31, 2015, the Company received a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) inquiring into the Company's participation in and management of dialysis facility joint ventures in which physicians are partners. The Company's has cooperated in the Denver USAO investigation, which has come to focus on purchases and sales of minority interests in ongoing outpatient facilities between the Company and physician groups.

The State's False Claims Act complaint was filed after Liberty initiated an administrative action challenging the State's recoupment of alleged overpayments from sums currently owed to Liberty. The civil litigation and administrative action are proceeding in parallel. Trial in the civil litigation has been postponed because of COVID-19-related administrative issues and has been rescheduled for August 2022.

With discovery concluded, the State has specified that its demands for relief relate to $7,700 in overpayments on approximately twenty thousand "claims" submitted by Liberty. After prevailing on motions by Xerox to preclude it from doing so, the Company is 40 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) pursuing third-party claims for contribution and indemnification against Xerox.

Hawaii v. Liberty Dialysis- Hawaii, LLC et al., Case No. 15-1-1357-07 (Hawaii 1st Circuit). The State alleges that Liberty acted unlawfully by relying on incorrect and unauthorized billing guidance provided to Liberty by Xerox State Healthcare LLC, which acted as Hawaii's contracted administrator for its Medicaid program reimbursement operations during the relevant period.

Flanagan v. Fresenius Medical Care Holdings, Inc., 1:21-cv-11627. In July 2015, the Attorney General for Hawaii issued a civil complaint under the Hawaii False Claims Act alleging a conspiracy pursuant to which certain Liberty Dialysis subsidiaries of the Company overbilled Hawaii Medicaid for Liberty's Epogen administrations to Hawaii Medicaid patients during the period from 2006 through 2010, prior to the time of the Company's acquisition of Liberty.

The relator thereafter served the complaint and proceeded on his own in part by filing an amended complaint making broad allegations about financial relationships between the Company and nephrologists. The Company's motion to dismiss the amended complaint remains pending. On October 5, 2021, the District Court for Maryland granted the Company's motion to transfer the case to the United States District Court for Massachusetts, where the litigation continues.

A trial date has not been set in the matter. In August 2014, the Company received a subpoena from the United States Attorney's Office ("USAO") for the District of Maryland inquiring into the Company's contractual arrangements with hospitals and physicians involving contracts relating to the management of in-patient acute dialysis services. On August 27, 2020, after the USAO declined to pursue the matter by intervening, the United States District Court for Maryland unsealed a 2014 relator's qui tam complaint that gave rise to the investigation.

Discovery in the litigation is complete. The AIG group abandoned certain of its coverage claims and submitted expert reports on damages asserting that, if AIG prevails on all its remaining claims, it should recover $60,000. The Company contests all of AIG's claims and submitted expert reports supporting rights to recover $108,000 from AIG, in addition to the $220,000 already funded.

Following the settlement, the Company's insurers in the AIG group initiated litigation and sought to be indemnified by the Company for their $220,000 outlay and the Company initiated litigation against the AIG group to recover defense and indemnification costs the Company had borne. National Union Fire Insurance v. Fresenius Medical Care, 2016 Index No. 653108 (Supreme Court of New York for New York County).

Personal injury and related litigation involving the Company's acid concentrate product, labeled as Granuflo or Naturalyte , first arose in 2012. The Company's insurers agreed to the settlement in 2017 of personal injury litigation and funded $220,000 of the settlement fund under a reciprocal reservation of rights. The Company accrued a net expense of $60,000 in connection with the settlement, including legal fees and other anticipated costs.

The outcome of litigation and other legal matters is always difficult to predict accurately and outcomes that are not consistent with the Company's view of the merits can occur. The Company believes that it has valid defenses to the legal matters pending against it and is defending itself vigorously. Nevertheless, it is possible that the resolution of one or more of the legal matters currently pending or threatened could have a material adverse effect on its business, results of operations and financial condition.

Legal matters that the Company currently deems to be material or noteworthy are described below. The Company records litigation reserves for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of loss can be reasonably estimated. For the other matters described below, the Company believes that the loss is not probable and/or the loss or range of possible losses cannot be reasonably estimated at this time.

The remaining amounts of funding received and recorded in deferred income was $62,176 and $22,841 at December 31, 2021 and 2020, respectively. 39 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) (18) Legal Proceedings Legal and Regulatory Matters The Company is routinely involved in claims, lawsuits, regulatory and tax audits, investigations and other legal matters arising, for the most part, in the ordinary course of its business of providing health care services and products.

In addition to the costs incurred which are eligible for government funding, the Company has been affected by impacts that COVID-19 had on the global economy and financial markets as well as effects related to lockdowns. The Company recorded a contract liability for advance payments received under the CMS Accelerated and Advance Payment program within accrued liabilities in the amount of $442,568 and $672,221 and other liabilities in the amount of $0 and $373,804 as of December 31, 2021 and 2020, respectively.

Additionally, the Company experienced a loss of revenue due to the pandemic in certain parts of its business, offset by increased demand for its services and products in other parts. Government agencies have provided economic assistance programs to address the consequences of the pandemic on companies and support healthcare providers and patients. The Company received U.S. federal relief funding under the CARES Act in the amount of $122,000 and $284,600 for the years ended December 31, 2021 and 2020, respectively.The Company has recorded $75,821 and $262,437 of the CARES Act funding as an offset to healthcare services for the years ended December 31, 2021 and 2020, respectively.

To be able to continue care for its patients in light of COVID-19, the Company determined that it needed to implement a number of measures, both operational and financial, to maintain an adequate workforce, protect its patients and employees through expanded personal protective equipment protocols and to develop surge capacity for patients suspected or confirmed to have COVID-19.

At December 31, 2021, the Company had foreign currency contracts with maturities of up to 14 months. (17) Impacts of COVID-19 The Company provides life-sustaining dialysis treatments and other critical healthcare services and products to patients. Its patients need regular and frequent dialysis treatments, or else they face significant health consequences that would result in either hospitalization or death.

The result is then discounted on the basis of the market interest rates prevailing at the balance sheet date for the applicable currency. The Company includes its own credit risk when measuring the fair value of derivative financial instruments. 38 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) (i) The Effect of Derivatives on the Consolidated Financial Statements Amount of gain (loss) Amount of gain (loss) recognized in OCI on derivatives (effective portion) December 31 reclassified from OCI in income (effective portion) for the twelve months ended December 31 Location of gain (loss) reclassified from OCI in income (effective portion) 2021 2020 2021 2020 Foreign currency contracts Cost of medical supplies $ $ (2,926) (2,926) $ $ 348 348 $ $ 1,871 1,871 $ $ (358) (358) The Company expects to reclassify $930 of gains from other comprehensive income into earnings within the next twelve months.

The noncurrent portions indicated as assets or liabilities are included in the consolidated balance sheets in other assets or other liabilities, respectively. The significant methods and assumptions used in estimating the fair values of derivative financial instruments are as follows: To determine the fair value of foreign exchange forward contracts, the contracted forward rate is compared to the current forward rate for the remaining term of the contract as of the balance sheet date.

GAAP. Derivative instruments are marked to market each reporting period resulting in carrying amounts being equal to fair values at each reporting date with the changes in fair value recognized in earnings. The carrying amounts for the current portion of derivatives indicated as assets in the table above are included in other current assets in the consolidated balance sheets while the current portion of those indicated as liabilities are included in other current liabilities.

At December 31, 2021 the fair value of the derivative liability was $100,654. The foreign exchange gain of $52,183 on this derivative liability is included within the Interest expense, net, and related financing costs on the statement of income. The following table shows the Company's derivatives at December 31, 2021 and 2020: 2020 2021 Assets (1) Liabilities (1) Assets (1) Liabilities (1) Current: Foreign currency contracts Noncurrent: Foreign currency contracts Total $ - $ 103,276 $ 600 $ 1,022 9 9 81 103,357 33 633 48,502 49,524 $ $ $ $ (1) At December 31, 2021 and 2020, the valuation of the Company's derivatives was determined using Significant Other Observable inputs (Level 2) in accordance with the fair value hierarchy levels established in U.S.

The currency exchange agreement requires that at the settlement date, FMC Finance II is obligated to pay to FMCH, Euro interest on the Euro equivalent of the notional principal amount. Conversely, at the periodic settlement date, FMCH is obligated to pay FMC Finance II, the interest on notional principal amounts in U.S. dollars. The $700,000 currency agreement is reflected in accrued liabilities and other liabilities within the consolidated balance sheets at fair value at the reporting date with changes in fair value recognized in earnings.

(i) FMC Finance II Currency Exchange Agreements On January 26, 2012, the Company entered into a currency exchange agreement with Fresenius Medical Care US Finance II, Inc. (FMC Finance II) with a notional principal amount of $700,000, and an equivalent Euro amount based on the foreign exchange rate at the time the exchange agreement was entered into.

These instruments are reflected in the consolidated balance sheets at fair value with changes in fair value recognized in earnings. Pre-tax gains recorded in the consolidated statements of income for the year ended December 31, 2021 was $52,183 and after-tax gain was $38,537. Pre-tax gains recorded in the consolidated statements of income for the year ended December 31, 2020 was $42,014 and after-tax gain was $30,964.

At December 31, 2021 and 2020, the Company would have paid approximately $ 2,376 and $673 to terminate these contracts, respectively. 37 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) (b) Currency Exchange Agreements Periodically, the Company enters into derivative instruments with related parties to form an economic hedge for currency exchange rate exposures on intercompany obligations.

All contracts are for periods between January 2022 and February 2023. The fair value of currency contracts are the estimated amounts that the Company would receive or pay to terminate the agreements at the reporting date, taking into account the current exchange rates and the current creditworthiness of the counterparties in addition to the Company's own nonperformance risk.

The contracts outstanding at December 31, 2021 include forward contracts for purchase of EUR at rates ranging from $1.178 to $1.556 per EUR, forward contracts for the purchase of Mexican pesos at rates ranging from $20.407 to $21.733 per Mexican peso,and outright sale contracts for Canadian dollars at rates ranging from $1.258 to $1.361 per Canadian dollar.

The change in value of the economic hedge is recorded in the consolidated statements of income. (a) Foreign Currency Contracts The Company uses foreign exchange contracts as a hedge against foreign exchange risks associated with the settlement of foreign currency denominated payables and firm commitments. At December 31, 2021 and 2020, the Company had outstanding foreign currency contracts for the purchase of Euros (EUR) totaling 62,135 and 28,792 , respectively, contracts for the purchase of 867,619 and 786,410 Mexican pesos, respectively, and contracts for the sale of 13,650 and 14,800 Canadian dollars, respectively.

After-tax gains and losses are deferred in other comprehensive income and are reclassified into cost of medical supplies in the period during which the hedged transactions affect earnings. All deferred amounts are reclassified into earnings within the next twelve months. The Company also enters into derivative contracts which do not qualify for hedge accounting but are utilized for economic hedges.

The table below summarizes the derivative financial instruments pre-tax and after-tax effect on other comprehensive income for the years ended December 31,2021 and 2020: Year ended December 31 2021 2020 Forecasted raw material product purchases and other obligations: Pre-tax loss (gain) After-tax loss (gain) $ 1,054 751 $ (10) (8) The Company enters into forward rate agreements that are designated and effective as hedges of forecasted raw material purchases and other obligations.

On a quarterly basis an assessment of the Company's counterparty credit risk is performed, which the Company considers to be low. The Company does not use financial instruments for trading purposes. The Company established guidelines for risk assessment procedures and controls for the use of financial instruments. They include a clear segregation of duties with regard to execution on one side and administration, accounting and controlling on the other.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) Derivative Financial Instruments (16) The Company is exposed to risk from changes in foreign exchange rates. In order to manage the risk of currency exchange rate fluctuations, the Company enters into various hedging transactions with highly rated financial institutions as authorized by the Parent Company.

Unrealized (losses)/gains related to these financial instruments for the years ended December 31, 2021 and 2020 was $(8,289) and $11,458, respectively. The following table presents the carrying amounts and fair value of the Company's financial instruments for the years ended December 31, 2021 and 2020: December 31, 2021 Fair Value Carrying amount Level 1 Level 2 Level 3 Equity investments Debt securities $ 236,919 242,369 $ 217,331 - $ - 242,369 $ 19,588 - December 31, 2020 Fair Value Carrying amount Level 1 Level 2 Level 3 Equity investments Debt securities $ 352,963 6,073 $ 352,963 6,073 $ - - $ - - The following table presents the maturity dates of the Company' debt securities December 31, 2021 and 2020: for the year ended 2021 Fair Value 30,179 104,978 41,992 65,220 242,369 2020 Fair Value 2,880 3,193 - - 6,073 Within 1 year 1 - 5 years 6 - 9 years Thereafter Total 36 FRESENIUS MEDICAL CARE HOLDINGS, INC.

Equity investments are recorded at their estimated fair value with changes associated with gains or losses reported through earnings. The fair value of the debt securities and equity investments are determined based on readily determinable quoted prices from an active market. The cost basis of debt securities was $231,292 for the year ended December 31, 2021.

FMCH recognized $23,234 and $24,896 of compensation expense under the LTIPs in the years ended December 31, 2021 and 2020, respectively. (15) Financial Instruments The Company's financial instruments consists of equity investments and debt securities. Debt securities are classified as available for sale and recorded at their estimated fair value. Changes in the fair value of debt securities are reported in other comprehensive income for unrealized gains or losses until realized.

(d) Long-term Incentive Plan The Supervisory Board of Management AG has approved and adopted the Fresenius Medical Care Management Board Long Term Incentive Plan 2020 ("MB LTIP 2020") effective January 1, 2020. 35 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) Performance Shares are non-equity, cash-settled virtual compensation instruments which may entitle plan participants to receive a cash payment depending on the achievement of pre-defined performance targets as well as the Company's share price development.

Expected volatility is based on historical volatility of the Company's shares. To incorporate the effects of expected early exercise in the model, an early exercise of vested options was assumed as soon as the share price exceeds 155% of the exercise price. The Company's stock options have characteristics that vary significantly from traded options and changes in subjective assumptions can materially affect the fair value of the option.

(c) Fair Value Information The Company used a binomial option-pricing model in determining the fair value of the awards under the 2011 SOP. Option valuation models require the input of subjective assumptions including expected stock price volatility. The Company's assumptions are based upon its past experiences, market trends and the experiences of other entities of the same size and in similar industries.

During the years ended December 31, 2021 and 2020, the Parent Company received cash of $4,426 and $9,840, respectively, from the exercise of stock options. The intrinsic value of options exercised for the years ended December 31, 2021 and 2020 were $1,446 and $2,822, respectively. The Company recorded a related tax benefit of $378 and $742 for the years ended December 31, 2021 and 2020, respectively.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) The table below provides reconciliations for options outstanding at December 31, 2021, as compared to December 31, 2020. Weighted average exercise price Options (In thousands) Ordinary shares: Balance at December 31, 2019 Exercised Expired Balance at December 31, 2020 Exercised Expired Balance at December 31, 2021 2,311 (164) (36) 2,111 (75) (19) 2,017 $ 79.60 64.60 93.36 88.57 56.45 81.84 82.69 $ $ The following table provides a summary of fully vested options outstanding and exercisable for ordinary shares at December 31, 2021: Fully vested outstanding and exercisable options Weighted average Weighted average exercise price remaining Aggregate intrinsic value Number of options contractual life in years (In thousands, except per share amounts) Options for ordinary shares 2017 1.43 $ 82.69 $ 2,273 At December 31, 2021, there were no unrecognized compensation costs related to non-vested options granted under all plans.

Stock options granted under the LTIP 2011 to U.S. participants are non-qualified stock options under the United States Internal Revenue Code of 1986, as amended. Stock options under the LTIP 2011 are not transferable by a participant or a participant's heirs, and may not be transferred, pledged, assigned, or disposed of otherwise. 34 FRESENIUS MEDICAL CARE HOLDINGS, INC.

Stock options granted under the LTIP 2011 have an eight-year term and can be exercised for the first time after a four-year vesting period. The exercise price of stock options granted under the LTIP 2011 shall be the average stock exchange price on the Frankfurt Stock Exchange of the Company's shares during the 30 calendar days immediately prior to each grant date.

Under the LTIP 2011, participants were granted awards, which consisted of a combination of stock options and Phantom stock. The final grant under the LTIP 2011 was made in December 2015. Awards under the LTIP 2011 are subject to a four-year vesting period. Vesting of the awards granted is subject to achievement of pre-defined performance targets. The 2011 SOP was established with a conditional capital increase up to 12,000 subject to the issue of up to twelve million non-par value bearer ordinary shares with a nominal value of 1.00 per share.

As of December 31, 2021 and 2020, the Company had 83,985,000 shares of common stock outstanding. (b) Stock Options On May 12, 2011, the Fresenius Medical Care AG & Co. KGaA Stock Option Plan 2011 (2011 SOP) was established by resolution of KGaA's Annual General Meeting. The 2011 SOP, together with the Phantom Stock Plan 2011, which was established by resolution of the General Partner's Management and supervisory boards, forms the Company's Long-Term Incentive Program (LTIP 2011).

The following is a rollforward of noncontrolling interests subject to put provisions for the years ended December 31, 2021 and 2020: 2021 $ 1,246,007 (199,187) 72,095 26,530 5,182 159,728 $ 1,310,355 2020 $ 1,102,279 (182,318) 23,613 15,146 123,742 163,545 $ 1,246,007 Beginning balance Dividends paid Net sale (purchases) of noncontrolling interests Contributions from noncontrolling interests Changes in redemption value of noncontrolling interests Net income attributable to NCI interests subject to put options Ending balance (14) Equity (a) Common Stock The Company did not purchase any shares of its common stock in 2021 or 2020.

At December 31, 2021 and 2020, the Company's potential obligations under these put options are $1,310,355 and $1,246,007, respectively, of which, at December 31, 2021 and 2020, $820,836 and $760,694 were exercisable respectively. No put options were exercised in the year ended December 31, 2021. Put options were exercised for a total consideration of $4,112 in the years ended December 31, 2020 .

Estimated fair value is determined using a market approach and is determined by a multiple of earnings, development stage of the underlying business and other factors. The estimated fair values of the noncontrolling interests subject to these put provisions can also fluctuate and the implicit multiple of earnings at which these noncontrolling interest obligations may ultimately be settled could vary significantly from our current estimates depending upon market conditions.

If these put provisions were exercised, the Company would be required to purchase all or part of third-party owners' noncontrolling interests at the appraised fair value at the time of exercise. The methodology the Company uses to estimate the fair values of the noncontrolling 33 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) interest subject to put provisions assumes the greater of net book value or a multiple of earnings or estimated fair value.

(13) Noncontrolling Interests Subject to Put Provisions The Company has potential obligations to purchase the noncontrolling interests held by third parties in certain of its consolidated subsidiaries. These obligations are in the form of put provisions and are exercisable at the third-party owners' discretion within specified periods or conditions as outlined in each specific put provision.

(c) Defined Contribution Plans Most FMCH employees are eligible to join a 401(k) savings plan. Employees can deposit up to 75% of their pay up to a maximum of $19.5 if under 50 years old ($26 if 50 or over) under this savings plan. The Company will match 50% of the employee deposit up to a maximum Company contribution of 3% of the employee's pay. The Company's total expense under this defined contribution plan for the years ended December 31, 2021 and 2020 was $79,968 and $79,584, respectively.

The noncurrent portion of $15,533 and $15,801 as of December 31, 2021 and 2020, respectively, is recorded as noncurrent pension liability in other liabilities within the consolidated balance sheets. The Company does not provide any post-retirement benefits to its employees other than those provided under its NMC plan and supplemental executive retirement plan.

The Company contributed $1,188 and $1,309 to this plan during 2021 and 2020, respectively. Expected funding for 2022 is $1,350. The pension liability recognized as of December 31, 2021 and 2020 of $16,861 and $17,082, respectively, includes a current portion of $1,328 and $1,281 , respectively, which is recognized as a current liability in the line item accrued liabilities within the consolidated balance sheets.

The projected benefit obligation was $16,861 and $17,082 at December 31, 2021 and 2020, respectively. Pension expense for this plan, for the years ended December 31, 2021 and 2020 was $1,474 and $1,319, respectively. The Company has recorded $3,973 and $4,478 to accumulated other comprehensive loss to recognize the additional liability for this plan at December 31, 2021 and 2020, respectively.

Corporate High Yield Index, and Bloomberg Barclays U.S. High Yield Fallen Angel 3% Capped Index. (b) Supplemental Executive Retirement Plan The Company's supplemental executive retirement plan provides certain key executives with benefits in excess of normal pension benefits. During the first quarter of 2002, FMCH curtailed its supplemental executive retirement plan.

The total portfolio will be measured against a custom index that reflects the asset class benchmarks and the target asset allocation. The plan investment policy does not allow investments in securities of the Company or other related party securities. The performance benchmarks for the separate asset classes include: S&P 500 Index, S&P 400 Mid-Cap Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Index, Barclays Capital Long-Corporate Bond Index, Bloomberg Barclays U.S.

Investment income and cash or cash equivalents are used for near-term benefit payments. Investments are governed by the plan investment policy and include well diversified index funds or funds targeting index performance. The plan investment policy, utilizing a revised target investment allocation in a range around 26% equity and 74% fixed income investments, considers that there will be a time horizon for invested funds of more than 5 years.

The range of returns developed relies both on forecasts, which include the actuarial firm's expected long-term rates of return for each significant asset class or economic indicator, and on broad-market historical benchmarks for expected return, correlation, and volatility for each asset class. The Company s overall investment strategy is to achieve a mix of approximately 99% of investments for long-term growth and income and 1% in cash or cash equivalents.

(ii) Plan Investment Policy and Strategy The Company periodically reviews the assumption for long-term expected return on pension plan assets. As part of the assumptions review, a range of reasonable expected investment returns for the pension plan as a whole was determined based on an analysis 32 FRESENIUS MEDICAL CARE HOLDINGS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) of expected future returns for each asset class weighted by the allocation of the assets.

Index funds are valued based on market quotes. Government bonds are valued based on both market prices and market quotes. Corporate bonds and other bonds are valued based on market quotes. Cash is stated at nominal value which equals the fair value. U.S. Treasury money market funds as well as other money market and mutual funds are valued at their market price.

This category comprises fixed income investments by the U.S. government and government sponsored entities. This category primarily represents investment grade bonds of U.S. issuers from diverse industries. This category comprises private placement bonds as well as collateralized mortgage obligations. This category represents funds that invest in U.S. treasury obligations directly or in U.S. treasury-backed obligations. 2 3 4 5 The methods and inputs used to measure the fair value of plan assets at the balance sheet date are as follows: Common stocks are valued at their market prices.

Treasury money market funds 5 Total $106,899 $ 11,155 $ 95,744 $ - $108,193 $ 10,953 $ 97,240 $ - 10,444 240,103 17,586 10,153 - - 291 240,103 8,282 - - 9,304 19,290 224,375 20,341 18,948 - - 342 224,375 11,510 - - 8,831 4,462 $379,494 4,462 25,770 - 344,420 - 9,304 9,392 $381,591 9,392 39,293 - 333,467 - 8,831 $ $ $ $ $ $ 1 This category comprises low-cost equity index funds not actively managed that track the S&P 500, S&P 400, Russell 2000, MSCI Emerging Markets Index and the Morgan Stanley International EAFE Index.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) (i) Plan Assets The following table presents the fair values of the NMC plan assets at December 31, 2021 and 2020: Fair value measurements at December 31, 2021 Quoted prices in active markets Fair value measurements at December 31, 2020 Quoted prices in active markets for Significant observable inputs Level 2 for Significant observable inputs Level 2 identical assets Level 1 Unobservable inputs Level 3 identical assets Level 1 Unobservable inputs Level 3 Total Total Asset category: Equity investments: Index funds 1 Fixed income investments: Government securities 2 Corporate bonds 3 Other bonds 4 U.S.

The Company's discount rate is the weighted average of this plan based upon their benefit obligations at December 31, 2021. The following weighted average assumptions were used in determining net periodic benefit cost for the years ended December 31: 2021 3.05 % 4.62 3.50 2020 3.63 % 5.51 3.50 Discount rate Expected return on plan assets Rate of compensation increase Expected benefit payments for the NMC plan for the next five years and in the aggregate for the five years thereafter are as follows: 2022 2023 2024 2025 2026 2027 through 2031 $ 22,753 23,332 23,921 24,462 24,708 126,160 31 FRESENIUS MEDICAL CARE HOLDINGS, INC.

AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except share data) The following weighted average assumptions December 31: were utilized in determining benefit obligations as of 2021 3.03 % 3.50 2020 3.05 % 3.50 Discount rate Rate of compensation increase The NMC plan net periodic benefit costs recorded in selling, general and administrative expenses are comprised of the following components: 2021 2020 Components of net periodic benefit cost: Service cost Interest cost Expected return on plan assets Amortization of unrealized losses Amortization of prior service credit Net periodic benefit cost 7,260 13,567 (18,870) 13,496 (158) 15,295 5,478 15,140 (18,807) 14,900 (118) 16,593 The discount rates for the NMC plan are derived from an analysis and comparison of yields of portfolios of equity and highly rated debt instruments with maturities that mirror the NMC plan's benefit obligation.