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

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The company reached its financial targets for 2009, set new records and proposes its 13th consecutive annual dividend increase.

2009 Full-Year Summary:

Net revenue	$ 11,247 million		+6%
Operating income (EBIT)	$ 1,756 million		+5%
Net income attributable to Fresenius Medical Care AG & Co. KGaA	$ 891 million		+9%
Earnings per share	$ 2.99		+9%
Dividend Proposal Ordinary share	€ 0.61		+5%
Dividend Proposal Preference share	€ 0.63		+5%

2009 4th-Quarter Summary:

Net revenue	$ 3,035 million		+12%
Operating income (EBIT)	$ 491 million		+13%
Net income attributable to Fresenius Medical Care AG & Co. KGaA	$ 247 million		+15%
Earnings per share	$ 0.82		+15%

Fresenius Medical Care AG & Co. KGaA ("the Company" or "FMC AG & Co. KGaA"), the world's largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2009.

4th-Quarter 2009:

Revenue

Net revenue for the fourth quarter of 2009 increased by 12% to $3,035 million (8% at constant currency) compared to the fourth quarter of 2008. Organic revenue growth worldwide was 8%. Dialysis Services revenue grew by 12% to $2,226 million (11% at constant currency) in the fourth quarter of 2009. Dialysis Product revenue increased by 10% to $809 million (an increase of 3% at constant currency) in the same period.

North America revenue increased by 9% to $2,012 million. Organic revenue growth was 9%. Dialysis Services revenue grew by 10% to $1,799 million. Average revenue per treatment for U.S. clinics increased to $357 in the fourth quarter of 2009 compared to $335 for the corresponding quarter in 2008 and $348 for the third quarter of 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis Product revenue decreased by 3% to $213 million as a result of decreased sales of our phosphate-binding drug PhosLo®, partially offset by sales of our intravenous iron products, which increased by 14%, as well as increased sales of dialyzers, solutions and concentrates.

International revenue increased by 18% to $1,023 million, compared to the fourth quarter of 2008. Based on constant currency, revenue grew by 8%. Organic revenue growth was 7%. Dialysis Services revenue was $427 million, an increase of 22% (12% at constant currency). Dialysis Product revenue increased by 15% to $596 million (5% at constant currency), led by sales of products for acute care treatments, sales of dialyzers, bloodlines and pharmaceuticals.

Earnings

Operating income (EBIT) for the fourth quarter of 2009 increased by 13% to $491 million compared to the fourth quarter of 2008. The operating margin increased from 15.9% in the fourth quarter of 2008 to 16.2% in the fourth quarter of 2009.

In North America, the operating margin increased from 16.7% in the fourth quarter of 2008 to 17.7% in the fourth quarter of 2009. The margin development was impacted favorably by an increase in revenue per treatment and strong cost controls. The revenue per treatment improved mainly due to increased commercial rates, an increase in the utilization of pharmaceuticals and favorable development of the payor mix. The cost per treatment was impacted favorably by a strong cost management and a decrease in bad-debt expenses due to excellent cash collections on receivables. This was offset partially by higher costs for pharmaceuticals, mainly related to utilization, as well as the impact of the launch of a generic version of PhosLo® in the U.S. market and increased depreciation expense.

In the International segment, the operating margin decreased from 17.7% to 17.6% due to higher bad-debt and R&D expenses, partially offset by more favorable foreign exchange rate effects, lower production costs resulting from lower prices for raw material and energy, as well as economies of scale.

Net interest expense for the fourth quarter of 2009 was $75 million compared to $85 million in the comparable quarter of 2008, mainly due to lower short-term interest rates.

Income tax expense was $145 million for the fourth quarter of 2009 compared to $120 million in the fourth quarter of 2008, reflecting effective tax rates of 34.9% and 34.3%, respectively.

Net income attributable to FMC AG & Co. KGaA for the fourth quarter of 2009 was $247 million, an increase of 15% compared to the fourth quarter of 2008.

Earnings per share (EPS) for the fourth quarter of 2009 rose by 15% to $0.82 per ordinary share. The weighted average number of shares outstanding for the fourth quarter of 2009 was approximately 299 million shares compared to 297.6 million shares for the fourth quarter of 2008. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash Flow

In the fourth quarter of 2009, the Company generated $458 million in cash from operations, an increase of 52% compared to the fourth quarter of 2008 and representing approximately 15% of revenue. The cash flow performance was influenced positively by the favorable development of the Days Sales Outstanding and increased earnings.

A total of $173 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $285 million compared to $120 million in the fourth quarter of 2008. A total of $79 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $206 million compared to $32 million in the fourth quarter of the previous year.

Full Year 2009:

Revenue and Earnings

Net revenue was $11,247 million for the full year 2009, an increase of 6% compared to 2008. At constant currency, net revenue rose 9%. Organic growth was 8% in 2009.

Operating income (EBIT) increased by 5% to $1,756 million in 2009. The operating margin for 2009 was 15.6% compared to 15.8% for 2008.

Net interest expense for the full year 2009 was $300 million compared to $336 million in 2008, mainly due to lower short-term interest rates.

Income tax expense was $491 million for the full year 2009 compared to $476 million in 2008, reflecting effective tax rates of 33.7% and 35.6%, respectively. Tax expense was impacted positively by increased non-taxable non-controlling interest in North America.

For the full year 2009, net income attributable to FMC AG & Co. KGaA was $891 million, up 9% from 2008.

Earnings per ordinary share rose by 9% to $2.99 in 2009. The weighted average number of shares outstanding during 2009 was approximately 298.3 million.

Cash Flow

Cash from operations during 2009 was $1,339 million compared to $1,016 million for 2008, representing approximately 11.9% of revenue. The cash flow generation benefited from increased earnings and the favorable development of the Days Sales Outstanding.

A total of $562 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for 2009 was $777 million compared to $343 million in 2008. A total of $136 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $641 million compared to $125 million in 2008.

Please refer to the attachments for a complete overview on the fourth quarter and the full year of 2009.

Patients – Clinics – Treatments

As of Dec. 31, 2009, Fresenius Medical Care treated 195,651 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 132,262 patients, an increase of 5%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 133,969. The International segment served 63,389 patients, an increase of 9% over the prior year.

As of Dec. 31, 2009, the Company operated a total of 2,553 clinics worldwide. This is comprised of 1,784 clinics in North America (1,814 including managed clinics), an increase of 6%, and 769 clinics in the International segment, an increase of 10%.

Fresenius Medical Care delivered approximately 29.43 million dialysis treatments worldwide during 2009. This represents an increase of 6% year over year. North America accounted for 19.87 million treatments, an increase of 4%, and the International segment delivered 9.56 million treatments, an increase of 10% over the previous year.

Employees

As of Dec. 31, 2009, Fresenius Medical Care had 67,988 employees (full-time equivalents) worldwide compared to 64,666 employees at the end of 2008. This increase of more than 3,300 employees is due to the overall growth in the Company's business.

Dividend

The Company will continue to follow an earnings-driven dividend policy. For the 13th consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2009. At the Annual General Meeting to be held on May 11, 2010, shareholders will be asked to approve a dividend of €0.61 per ordinary share, an increase of 5% from 2008 (€0.58).

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.69 at the end of 2008 to 2.46 at the end of 2009.

Rating

There have been no rating changes in the fourth quarter 2009, Standard & Poor's Rating Services continued to rate the Company's corporate credit as ‘BB' with a ‘stable' outlook. Moody's also affirmed its rating of the Company's corporate credit as ‘Ba1' with a ‘stable' outlook. Fitch rates the Company's corporate credit as ‘BB' with a ‘stable' outlook. For further information on Fresenius Medical Care's credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

Issuance of Senior Notes

At the beginning of the first quarter of 2010 Fresenius Medical Care issued senior notes due 2016 in the amount of €250 million. The coupon is 5.5%. With a price at issuance of 98.6636% the yield to maturity at issuance was 5.75%. Proceeds were used to repay short-term indebtedness and for general corporate purposes. The senior notes are guaranteed on a senior basis jointly and severally by the Company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH.

Fresenius Medical Care Announces Management Board Changes

In December 2009, Fresenius Medical Care announced a transition to a new management board structure drawing entirely on internal management strength. The contract of Dr. Ben Lipps as chairman has been extended Dec. 31, 2012, and Rice Powell has been appointed as Deputy Chairman of the Fresenius Medical Care Management Board. The Company has also appointed Mike Brosnan as Chief Financial Officer. Kent Wanzek was named to the new Fresenius Medical Care Management Board position for Global Manufacturing Operations to provide stronger manufacturing coordination on a global basis.

Outlook for 2010

For the full year of 2010, the Company expects to achieve revenue of more than $12 billion.

Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.

The Company expects to spend $550 to $650 million on capital expenditures and up to $400 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

Ben Lipps, chief executive officer of Fresenius Medical Care, said: "We are very pleased to report excellent financial results for the fourth quarter and full year of 2009. With this performance, we achieved the top end of our earnings guidance for 2009. Cash flow from operations was very strong and clearly ahead of our expectations. In 2010, we expect to face similar challenges as we did in 2009 but we continue with confidence to execute our strategic plan while maintaining vigilance as to local health care trends. We remain committed to providing the best quality of care to maximize patients overall health and well-being. Our early stage experience with a comprehensive payment demonstration concept, online Hemofiltration and nocturnal dialysis are particularly encouraging in that they show a positive effect on total health care costs while improving patient care outcomes. "

Video Webcast

Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2009 on Wednesday, Feb. 24, 2010, at 10 am CET. The Company cordially invites journalists to view the live video webcast at the Company's website www.fmc-ag.com in the section "News and Press / Video service". A replay will be available shortly after the meeting.

 

Contact

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

Documents

Text as PDF document (PDF, 208 KB)

• Sales: €14.2 billion, +15% at actual rates, +13% in constant currency
• EBIT: €2.1 billion, +19% at actual rates, +17% in constant currency
• Adjusted net income*: €514 million, +14% at actual rates, +14% in constant currency

• Excellent sales and earnings growth in all business segments
• All financial targets met or exceeded
• EBIT exceeds the €2 billion mark for the first time
• Strong cash flow supports rapid de-leveraging
• 17th consecutive dividend increase proposed

*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.

Ulf Mark Schneider, CEO of Fresenius SE: "Fresenius took full advantage of its business opportunities in the past year. Despite a challenging macroeconomic environment, we have met or even exceeded our earnings guidance for 2009. Our comprehensive and well-diversified portfolio of products and services as well as our global presence proved to be valuable assets. Based on these outstanding results, we will propose the 17th consecutive increase in dividends to our shareholders. We will continue to pursue our long-term strategy which is based on sustainable, profitable growth."

Dividend increase proposed
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). The total dividend distribution is expected to be €122 million.

Positive outlook for 2010
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 income* is expected to increase by 8 to 10% in constant currency.

The Group plans to invest approximately 5% of sales in property, plant and equipment.

The net debt/EBITDA ratio is expected to improve further and reach a level below 3.0.

*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.

Sales growth of 13% in constant currency
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%.

Sales growth in the business segments was as follows:

In Europe sales grew by 11% in constant currency with organic sales growth contributing 7%. In North America sales grew by 16% in constant currency, mainly due to the consolidation of APP Pharmaceuticals from September 2008. Organic growth was 8%. Strong organic growth rates were achieved in the emerging markets, reaching 9% in Asia-Pacific and 12% in Latin America.

Group net income growth of 14% in constant currency
Group EBITDA increased by 17% in constant currency and by 19% at actual rates to €2,616 million (2008 adjusted: €2,203 million). Group operating income (EBIT) grew by 17% in constant currency and by 19% at actual rates to €2,054 million (2008 adjusted: €1,727 million). Group EBIT exceeded the €2 billion mark for the first time. The Group's EBIT margin increased to 14.5% (2008 adjusted: 14.0%).

Group net interest was -€580 million (2008: -€431 million). Lower average interest rates on liabilities of Fresenius Medical Care were more than offset by incremental debt related mainly to the acquisition of APP Pharmaceuticals.

The other financial result was -€31 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€37 million and the Contingent Value Rights (CVR) of €6 million. Both are non-cash items.

The adjusted Group tax* rate was 31.4% (2008 adjusted: 33.4%). This decrease was largely driven by the revaluation of a tax claim at Fresenius Medical Care in Q2 2009.
Non-controlling interest increased to €497 million (2008: €413 million), of which 93% was attributable to the minority interest in Fresenius Medical Care.

Adjusted Group net income** grew both in constant currency and at actual rates by 14% to €514 million (2008 adjusted: €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.

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. Those special items are recognized in the financial result of the "Corporate/Other" segment. 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. Please see page 14 of this Investor News for the reconciliation to earnings according to US GAAP.

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

*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.
**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.
***Net income attributable to Fresenius SE.

Continued investments in growth
The Fresenius Group spent €671 million on property, plant and equipment (2008: €764 million). This was below the initially projected range of €700 to 750 million due to the cautious investment policy pursued by the business segments. At 4.7% of sales, capital expenditures returned to our target range of approx. 5%. Acquisition spending was €260 million (2008: €3,853 million, primarily due to the acquisition of APP Pharmaceuticals).

Excellent cash flow development
Operating cash flow increased by 45% to €1,553 million (2008: €1,074 million), driven by strong earnings growth and tight working capital management. The cash flow margin improved to 11.0% (2008: 8.7%). Net capital expenditure was €662 million (2008: €736 million). Cash flow before acquisitions and dividends increased 2.6-fold to €891 million (2008: €338 million). Free cash flow after acquisitions and dividends was €389 million (2008: -€2,864 million).

Solid balance sheet structure
The Fresenius Group's total assets grew by 2% to €20,882 million (December 31, 2008: €20,544 million). In constant currency, the increase was 3%. Current assets increased by 6% to €5,363 million (December 31, 2008: €5,078 million). Non-current assets were virtually unchanged from previous year's level at €15,519 million (December 31, 2008: €15,466 million).

Total shareholders' equity increased by 10% to €7,652 million (December 31, 2008: €6,943 million). The equity ratio (including non-controlling interest) improved to 36.6% (December 31, 2008: 33.8%).

Group debt decreased by 6% to €8,299 million (December 31, 2008: €8,787 million).

As of December 31, 2009, the net debt/EBITDA ratio was 3.0 and improved significantly from 3.6 at December 31, 2008 (pro forma the acquisition of APP Pharmaceuticals and excluding special items). With that, the 2010 target range of 2.5 to 3.0 has been reached one year ahead of time.

Given the progress in de-leveraging and improved conditions in the debt capital markets since the acquisition of APP, Fresenius has launched an amendment request to its 2008 syndicated credit agreement with the aim to reduce its average cost of debt and to gain enhanced flexibility for further growth.

Number of employees increased
As of December 31, 2009, Fresenius increased the number of its employees by 7% to 130,510 (December 31, 2008: 122,217). The increase was mainly driven by Fresenius Medical Care and by Fresenius Helios' acquisition of five acute care clinics.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.

On April 22, 2009, the European Commission granted Fresenius Biotech the approval for Removab (catumaxomab) for the treatment of malignant ascites. Removab was launched in Germany in May 2009. Market launch is in preparation in other European countries. As of December 31, 2009, Fresenius Biotech achieved Removab sales of more than €1.6 million.

Fresenius Biotech's EBIT was -€44 million (2008: -€47 million). For 2010, Fresenius Biotech expects an EBIT between -€35 and -40 million.

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of December 31, 2009, Fresenius Medical Care was treating 195,651 patients in 2,553 dialysis clinics.

• Excellent organic sales growth of 8%
• 2010 outlook: Sales of more than US$12 billon and net income of US$950 to 980 million expected

Fresenius Medical Care achieved sales growth of 6% to US$11,247 million (2008: US$10,612 million). Excellent organic growth accounted for 8%, net acquisitions contributed a further 1%. Currency translation effects had a negative impact of 3%.

Sales in dialysis care increased by 8% to US$8,350 million (2008: US$7,737 million). Dialysis products sales grew by 1% at actual rates and 6% in constant currency to US$2,897 million (2008: US$2,875 million).

In North America sales increased by 9% to US$7,612 million (2008: US$7,005 million). Dialysis services revenue increased by 9% to US$6,794 million. Average revenue per treatment for the U.S. clinics increased to US$357 in the fourth quarter of 2009 compared to US$335 for the same quarter in 2008 and US$348 for the third quarter of 2009. This development was principally attributable to reimbursement increases and increased utilization of pharmaceuticals. Sales in dialysis products improved by 8% to US$818 million.

Sales outside North America ("International" segment) grew by 1% at actual rates and 9% in constant currency to US$3,635 million (2008: US$3,607 million). Sales in dialysis care increased by 4% (14% in constant currency) to US$1,556 million. Dialysis products sales decreased by 2% (increase by 6% in constant currency) to US$2,079 million.

EBIT rose by 5% to US$1,756 million (2008: US$1,672 million) resulting in an EBIT margin of 15.6% (2008: 15.8%). This was mainly due to higher personnel expenses, cost increases for pharmaceuticals, and the launch of a generic product for the phosphate binder PhosLo® by a competitor in the United States. These effects were partially offset by an increase in revenue per treatment, the strong development in dialysis products, and successful cost control measures.

Net income* increased by 9% to US$891 million (2008: US$818 million).

For 2010, Fresenius Medical Care expects to achieve revenue of more than US$12 billion. Net income1 is expected to be between US$950 and 980 million.

For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.  

*Net income attributable to Fresenius Medical Care AG & Co. KGaA

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

Strong organic sales growth of 8%
EBIT margin increased to 19.7%
2010 outlook: Organic sales growth between 7 and 9% and EBIT margin between 18 and 19% expected

Fresenius Kabi increased sales by 24% at actual rates and 26% in constant currency to €3,086 million (2008: €2,495 million). Organic sales growth was 8%. Net acquisitions contributed a further 18%. Currency translation had a net negative impact of 2%. The depreciation of currencies in Great Britain, Poland and Mexico against the euro was only partially offset by the strengthening of the Chinese yuan.

In Europe, sales reached €1,566 million (2008: €1,499 million), driven by 5% organic growth. In North America, sales increased to €728 million (2008: €336 million) primarily due to the full-year consolidation of APP Pharmaceuticals. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 15% to €482 million (2008: €381 million). Sales in Latin America and Africa increased to €310 million (2008: €279 million), and organic growth was 13%.

EBIT grew by 37% to €607 million (2008: €443 million). EBIT includes a €26 million non-cash charge related to the amortization of APP Pharmaceuticals' intangible assets. The EBIT margin increased to 19.7% (2008: 17.8%). Net interest grew to -€302 million (2008: -€145 million), driven by the APP acquisition financing. Net income* was at previous year's level of €200 million.

Sales at APP Pharmaceuticals increased by 14% to US$889 million. APP Pharmaceuticals achieved significant sales growth of 18% in its product portfolio excluding Heparin in the fourth quarter, taking full year 2009 sales growth to 8%. Adjusted EBITDA** reached US$347 million. EBIT was US$273 million. EBIT includes a US$37 million non-cash charge related to the amortization of acquisition-related intangible assets. The EBIT margin was 30.7%. APP Pharmaceuticals received seven drug approvals from the U.S. Food and Drug Administration (FDA) in fiscal year 2009.

Operating cash flow of Fresenius Kabi nearly doubled to €397 million (2008: €205 million). This was primarily achieved through tight working capital management. Given only moderate growth in capital expenditures, cash flow before acquisitions and dividends more than tripled to €272 million (2008: €83 million).

Fresenius Kabi targets organic sales growth between 7 and 9% for 2010. Furthermore, Fresenius Kabi forecasts an EBIT margin in a range between 18 and 19%. Whilst still at an excellent level, the slightly reduced margin guidance reflects delayed IV drug market launches, lower Heparin product sales and the expectation of further increased price competition in the US IV generics market. For the mid-term, Fresenius Kabi expects organic sales growth of 7 to 10 % p.a. and an EBIT margin in the 18 to 20 % range.

Special items relating to the acquisition of APP Pharmaceuticals are included in the segment "Corporate/Other".

*Net income attributable to Fresenius Kabi AG.
**Non-GAAP financial measures - Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP.

Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 61 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof ~600,000 in-patients, and operates a total of more than 18,500 beds.

Excellent sales and earnings growth
2010 outlook: Organic sales growth of 3 to 5% and EBIT in a range between €220 and 230 million expected

Fresenius Helios increased sales by 14% to €2,416 million (2008: €2,123 million). Organic growth was at a strong 7%, to a large degree driven by an increase in hospital admissions. Net acquisitions contributed 7% to overall sales growth.

EBIT grew by 17% to €205 million (2008: €175 million) due to the excellent business operations of the established clinics. The EBIT margin reached 8.5% (2008: 8.2%). Net income* improved by 34% to €107 million (2008: €80 million).

At HELIOS' established clinics, sales rose by 7% to €2,253 million. EBIT increased by 22% to €213 million. The EBIT margin improved to 9.5% (2008: 8.2%). The newly acquired clinics (consolidation <1 year) achieved sales of €163 million and an EBIT of €-8 million, in line with our expectations.

For 2010, Fresenius Helios expects to achieve organic sales growth of 3 to 5%. EBIT is projected to increase in a range between €220 and 230 million.

*Net income attributable to HELIOS Kliniken GmbH.

Fresenius Vamed
Fresenius Vamed offers engineering and services for hospitals and other health care facilities.

• Record sales, EBIT and net income
• Order intake and order backlog at new all-time highs
• Outlook 2010: Sales and EBIT growth between 5% and 10% expected

Fresenius Vamed achieved excellent sales and earnings growth and new all-time highs for order intake and order backlog.

Sales increased by 18% to €618 million (2008: €524 million). Organic sales growth was 15%. The clinics in the Czech Republic acquired from Fresenius Helios contributed 3%. Sales in the project business rose by 25% to €420 million (2008: €336 million). Sales in the service business increased by 5%** to €198 million (2008: €188 million).

EBIT grew by 20% to €36 million (2008: €30 million). The EBIT margin improved slightly to 5.8% (2008: 5.7%). Net income* rose by 4% to €27 million (2008: €26 million).

The excellent development of order intake and order backlog continued: Order intake in the project business increased by 27% to €539 million (2008: €425 million). In the fourth quarter of 2009, order intake was €226 million, including turn-key contracts for three clinics in Austria. Furthermore, VAMED received an order to deliver medical supplies to the Ukraine with an order volume of approximately €100 million. Order backlog increased by 19% to €679 million (December 31, 2008: €571 million).

In 2010, Fresenius Vamed expects to achieve both sales and EBIT growth in a range between 5 and 10%.

*Net income attributable to VAMED AG.
**Adjusted for project orders carried-out for the Vienna General Hospital - university clinics (AKH), which were included in the service business in 2008, sales growth was 22 %.

Press Conference and Video Webcast
As part of the publication of the results for fiscal year 2009, a press conference will be held at the Fresenius headquarters in Bad Homburg on February 24, 2010 at 10 a.m. CET. You are cordially invited to follow the conference in a live broadcast over the Internet at www.fresenius.com see Press / Audio-Video-Service. Following the meeting, a recording of the conference will be available as video-on-demand.

Contact

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

Documents

Text as PDF document (PDF, 27 KB)

Fresenius considerably improved the terms of its 2008 syndicated credit agreement through an amendment supported by a vast majority of its lenders.

Within the scope of the amended agreement, the interest rate of the approximately US$1.2 billion term loan B (new term loan C) will be reduced by one-third. The new applicable interest rate will consist of the relevant money market rate (LIBOR and EURIBOR) subject to a 1.50% floor (currently 3.25%), plus a 3.00% margin (currently 3.50%). Based on current market rates, the amendment results in a 2.25% reduction compared with the current applicable interest rate. One-time expenses related to the amendment will impact Fresenius' results for the first quarter of 2010. Fresenius expects a positive contribution to Group earnings for the full fiscal year.

The syndicated credit agreement was concluded in August 2008 as part of the acquisition financing for APP Pharmaceuticals, Inc. Since the acquisition, both Fresenius' debt ratios and conditions on the debt markets have improved considerably. In light of these developments, Fresenius decided in February 2010 to approach its lenders to renegotiate terms of the agreement.

Contact

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

Documents

Text as PDF document (PDF, 26 KB)

Fresenius Medical Care Chile is working to maintain operation of its clinic network and continue ensuring lifesaving dialysis treatment for patients in the country's recently affected earthquake region. Of the company's 28 dialysis clinics in the country, all but the operations in the Huechuraba area north of the nation's capital were functioning again within 48 hours of the initial tremor. Patients from Huechuraba received treatment at other clinics within the company's network. The Feb. 27 early morning offshore tremor registered 8.8 in magnitude and ravaged various portions of the country.

Contributing to further recovery efforts in the affected region, Fresenius Medical Care Chile donated two water treatment units suited for dialysis applications. The company augmented this initiative with technical assistance furnished by a team of water treatment unit specialists from Fresenius Medical Care Chile as well as Fresenius Medical Care Argentina. Working in the epicenter region, this crew has provided support for private clinics and public health care facilities which are not part of the Fresenius Medical Care network but also were impacted by the quake.

Working closely with the Chilean Ministry of Health's dialysis division coordinator, the Fresenius Medical Care team arranged contingent back-up capacities at its clinics for the treatment of 400 patients from affected areas, if necessary. Furthermore, Fresenius Medical Care Chile's peritoneal dialysis equipment also stood ready to provide continuous ambulatory peritoneal dialysis for the urgent treatment of 50 patients if requested by authorities. In addition to joint efforts with various other organizations, the company activated online Internet communications to update patients, clients and staff via its web site, providing information about patient care, staff availability and the operational status of its clinics.

Coordinating activities to ensure the treatment of individuals with chronic kidney disease, the company also teamed efforts to provide services for patients from other providers and regions seriously impacted by the tremor. Approximately 2,400 patients usually receive treatment in clinics located in the area affected by the quake. With service disruptions affecting roughly half of these persons, health authorities have been coordinating transfers of patients to other locations for treatment.

Fresenius Medical Care Chile provides roughly 360,000 dialysis treatments annually. The company is maintaining its monitoring of the contingency situation and is continuing to provide assistance and implement all necessary relief measures within its capacity.

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pr-fre@fresenius.com

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The resolutions on authorized capitals adopted by a large majority at Fresenius SE's annual general meeting on May 8, 2009, are final and binding. This results from the decision delivered today by the appellate court (Oberlandesgericht) in Frankfurt am Main, Germany, with regard to a judicial clearance proceeding (Freigabeverfahren) initiated by Fresenius. An appeal to a higher court is not available. As a consequence, the authorized capitals, which are already recorded in the commercial register, are definitively available.

The judicial clearance proceeding was prompted by legal challenges filed by two individual shareholders. The court's presiding division (Senat) upheld Fresenius SE's argument that the company's interest in implementing the resolutions outweighs the plaintiffs' interest in staying such implementation. The legal challenge underlying the decision is pending with the same court. However, this forthcoming decision has now become irrelevant with respect to the authorized capital resolutions covered by the clearance proceeding.

Authorized capital is commonly used by companies to maintain financial flexibility. Fresenius has currently no plans for a capital increase.

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The management and supervisory boards of Fresenius SE have unanimously resolved today to propose at its annual general meeting on May 12, 2010, the conversion of all preference shares into ordinary shares in combination with a change of the company's legal form into a partnership limited by shares – Kommanditgesellschaft auf Aktien (KGaA).

Ulf Mark Schneider, CEO of Fresenius SE: "With the creation of a single share class we will further strengthen Fresenius' position in the capital markets and increase the trading liquidity of our shares. This will enhance the attractiveness of Fresenius stock for the benefit of all investors. We will maintain our high standards of corporate governance and transparency."

The unified share structure is expected to have a positive effect on Fresenius' position in the German DAX30 index (Deutscher Aktienindex). The index currently only includes the preference shares and therefore just 50% of the company's share capital.

Under the terms of the cashless transaction, all non-voting preference shares in Fresenius SE will mandatorily be converted into voting ordinary shares at a 1:1 exchange ratio and the legal form of the company will be changed into a KGaA. The total share capital will remain unchanged. Following the conversion, each share will carry one voting right.

The proposed legal form of a KGaA enables Fresenius to achieve the benefits of a single share class, while maintaining the control position of the charitable Else Kröner-Fresenius Foundation. The foundation currently holds approximately 58% of the ordinary shares in Fresenius SE. The general partner of the KGaA will be a European company, Fresenius Management SE, a wholly-owned subsidiary of the foundation. The general partner's management will be identical to Fresenius SE's current executive team and will assume the management of Fresenius SE & Co. KGaA. The KGaA legal form builds on the successful model created by Fresenius Medical Care in 2005.

The Else Kröner-Fresenius Foundation has informed the company that it will endorse the resolution and retain its shareholding in Fresenius. The foundation has been a reliable shareholder with a long-term interest in the development of Fresenius, contributing to a stable shareholder structure. The foundations' right to act as the general partner is tied to a holding of more than 10% of the share capital of Fresenius SE & Co. KGaA.

Conversion into a KGaA will neither lead to a liquidation of the company nor to the formation of a new legal entity. There will be no change of control. In addition, the change of the legal form does not result in any negative tax consequences for Fresenius.

Commerzbank and Morgan Stanley are advising Fresenius on this transaction.

Annual General Meeting
At the annual general meeting on May 12, 2010, the ordinary and preference shareholders will be asked to approve the conversion of preference shares into ordinary shares in combination with the change of the company's legal form into a KGaA. The agenda will be available as from March 31, 2010, on the company's web site www.fresenius.com, under the section Investor Relations / Annual General Meeting.

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Summary First Quarter 2010

  

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA ("the Company" or "FMC AG & Co. KGaA"), the world's largest provider of dialysis products and services, today announced its results for the first quarter of 2010.


Revenue

Net revenue for the first quarter of 2010 increased by 13% to $2,882 million (+10% at constant currency) compared to the first quarter of 2009. Organic revenue growth worldwide was 8%. Dialysis services revenue grew by 13% to $2,171 million (+11% at constant currency) in the first quarter of 2010. Dialysis product revenue rose by 12% to $711 million (+5% at constant currency) in the same period.

North America revenue increased by 10% to $1,960 million. Organic revenue growth was 8%. Dialysis services revenue grew by 12% to $1,760 million. Average revenue per treatment for U.S. clinics increased to $355 in the first quarter of 2010 compared to $338 for the corresponding quarter in 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis product revenue increased by 1% to $200 million, led by higher sales of hemodialysis disposables and pharmaceuticals. In peritoneal dialysis we are focused on the continued market launch of the Liberty Cycler, resulting in a 13% growth internally.

International revenue increased by 17% to $922 million. Based on constant currency, revenue grew by 8%. Organic revenue growth was 6%. Dialysis services revenue was $411 million, an increase of 19% (+9% at constant currency). Dialysis product revenue increased by 16% to $511 million (+7% at constant currency), supported by higher sales of dialyzers and dialysis machines.
 

Earnings

Operating income (EBIT) for the first quarter of 2010 increased by 7% to $423 million compared to the first quarter of 2009. The operating margin decreased from 15.5% in the first quarter of 2009 to 14.7% in the first quarter of 2010.

In North America, the operating margin increased from 15.3% in the first quarter of 2009 to 15.6% in the first quarter of 2010. The margin development was impacted favorably by an increase in revenue per treatment and effective cost-containment measures.

In the International segment, the operating margin decreased from 18.7% in the first quarter of 2009 to 16.4% in the first quarter of 2010. The margin development was influenced negatively by the devaluation of the Venezuelan Bolivar.

Net interest expense for the first quarter of 2010 was $67 million compared to $74 million in the comparable quarter of 2009, mainly due to lower short-term interest rates.

Income tax expense was $128 million for the first quarter of 2010 compared to $111 million in the first quarter of 2009, reflecting effective tax rates of 35.8% and 34.3%, respectively.

Net income attributable to FMC AG & Co. KGaA for the first quarter of 2010 was $211 million, an increase of 7% compared to the first quarter of 2009.

Earnings per share (EPS) for the first quarter of 2010 rose by 6% to $0.70 per ordinary share. The weighted average number of shares outstanding for the first quarter of 2010 was approximately 299.6 million shares compared to 297.7 million shares for the first quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash Flow

In the first quarter of 2010, the Company generated $349 million in cash from operations, an increase of 124% compared to the first quarter of 2009 and representing approximately 12% of revenue. The cash flow performance was influenced positively by improvements in working capital, increased earnings and lower income tax payments.

A total of $99 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $250 million compared to $45 million in the first quarter of 2009. A total of $82 million in cash was used for acquisitions net of divestitures. Free cash flow after acquisitions and divestitures was $168 million compared to $9 million in the first quarter of the previous year.

Please refer to the appendix for a complete overview on the first quarter of 2010.

Patients – Clinics – Treatments

As of March 31, 2010, Fresenius Medical Care treated 198,774 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 133,105 patients, an increase of 5%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 134,847. The International segment served 65,669 patients, an increase of 9% over the prior year's figure.

As of March 31, 2010, the Company operated a total of 2,580 clinics worldwide, which represents a 5% increase compared to the previous year. The number of clinics is comprised of 1,788 clinics in North America (1,818 including managed clinics), and 792 clinics in the International segment, representing an increase of 4% and 8%, respectively.

Fresenius Medical Care delivered approximately 7.51 million dialysis treatments worldwide during the first quarter of 2010. This represents an increase of 7% over the same quarter last year. North America accounted for 5.03 million treatments, an increase of 6%, and the International segment delivered 2.47 million treatments, an increase of 8%.

Employees

As of March 31, 2010, Fresenius Medical Care had 69,329 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. This increase of 1,341 employees is due to overall growth in the Company's business.

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.64 at the end of the first quarter of 2009 to 2.30 at the end of the first quarter of 2010.


Rating

There have been no rating changes in the first quarter of 2010. On April 29, 2010, Standard & Poor's Rating Services has raised the outlook from ‘stable' to 'positive'. Standard & Poor's continues to rate the Company's corporate credit as ‘BB'. Moody's rates the Company's corporate credit as ‘Ba1' with a ‘stable' outlook. Fitch rates the Company's corporate credit as ‘BB' with a ‘stable' outlook.

For further information on Fresenius Medical Care's credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

Issuance of Senior Notes

At the start of 2010, Fresenius Medical Care issued €250 million aggregate principal amount of senior notes with a maturity in 2016. The proceeds from the issue were used to pay back short-term financial liabilities and for general business purposes.


Outlook for 2010

For the full year of 2010, the Company confirms its outlook.

Revenue is expected to grow to more than $12 billion.

Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.

The Company expects to spend $550 million to $650 million on capital expenditures and up to $400 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

"We are pleased to report a strong start for 2010 and we confirm our outlook for the full year," said Ben Lipps, chief executive officer of Fresenius Medical Care. "Strong organic growth is expected to continue and we also expect to strengthen our global presence through selective acquisitions, especially in the area of dialysis services. We had an excellent cash flow performance in the first quarter of 2010, supported by a continued impressive development in the days sales outstanding. Our most important goal for clinical and product research is to continue improving our patients' quality of life with innovative products and treatment concepts. We remain confident that we are well-positioned to meet our challenges, in particular the global reimbursement structural changes, and we look forward to the opportunity to further improve quality outcomes under these payment models."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2010 on Tuesday, May 4, 2010, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The Company invites investors to view the live webcast of the call at the Company's website www.fmc-ag.com. A replay will be available shortly after the call.

Contact

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

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• Sales: €3.6 billion, +8% at actual rates, +10% in constant currency
• EBIT: €500 million, +5% at actual rates, +7% in constant currency
• Net income*: €119 million, +8% at actual rates, +8% in constant currency

• Continued strong growth in all business segments
• Charges arising from the devaluation of the Venezuelan bolivar and the amendment of the syndicated credit agreement fully included in reported results
• Cash flow margin increases to 12%
• All business segments on track - 2010 outlook fully confirmed

*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.

Ulf Mark Schneider, CEO of Fresenius SE: "All our business segments made significant progress and achieved excellent results in the first quarter of 2010. We will continue to focus on revenue growth and our operating margin. Our first-quarter results give us full confidence in confirming our outlook for 2010. We expect Group net income to be at the upper end of our guidance."

Outlook for 2010 confirmed
Based on the Group's strong first-quarter financial results Fresenius confirms its positive outlook for 2010: Sales growth in constant currency is projected to be in a 7 to 9% range. Net income* is expected to increase by 8 to 10% in constant currency.

The Group plans to invest approximately 5% of sales in property, plant and equipment.

The net debt/EBITDA ratio is expected to improve further and reach a level below 3.0.

*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.

Sales growth of 10% in constant currency
Group sales increased by 10% in constant currency and by 8% at actual rates to €3,643 million (Q1 2009: €3,373 million). Organic sales growth was 9%. Acquisitions contributed a further 1%. Currency translation had a negative impact of 2%.

Sales growth in the business segments was as follows:

In Europe, sales grew by 10% in constant currency with organic sales growth contributing 9%. In North America, sales grew by 11% in constant currency. Organic growth was 9%. The organic growth rates in the emerging markets reached 4% in Asia-Pacific and 13% in Latin America. The low organic growth in Asia-Pacific is due to the volatility of the project business of Fresenius Vamed.

Continued strong earnings growth
Group EBITDA increased by 8% in constant currency and by 6% at actual rates to €649 million (Q1 2009: €613 million). Group EBIT grew by 7% in constant currency and by 5% at actual rates to €500 million (Q1 2009: €477 million). The EBIT margin was 13.7% (Q1 2009: 14.1%). At Fresenius Medical Care, the EBIT margin was impacted by the devaluation of the Venezuelan bolivar and related charges. As expected, Fresenius Kabi's EBIT margin was lower than in the first quarter of 2009 mainly due to delayed IV drug product launches and continued price competition in the U.S. market. The Group EBIT margin is expected to improve over the course of the year

Group net interest improved slightly to -€143 million (Q1 2009: -€145 million). Net interest includes one-time charges in a low single-digit million-euro range related to the reduction and renegotiation of the 2008 syndicated credit agreement.

The other financial result was -€51 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€69 million and the Contingent Value Rights (CVR) of €18 million. Both are non-cash items.

The adjusted Group tax* rate was 33.3% (Q1 2009 adjusted: 32.2%). The increase is attributable, among others, to the charges in Venezuela which are not tax deductible. The adjusted Group tax rate is expected to decrease over the course of the year.

Noncontrolling interest increased to €119 million (Q1 2009: €115 million), of which 93% was attributable to the minority interest in Fresenius Medical Care.

Group net income** grew both in constant currency and at actual rates by 8% to €119 million (Q1 20092: €110 million). Earnings per ordinary share** and earnings per preference share** increased both to €0.74 (Q1 20092: ordinary share €0.68, preference share €0.68). This represents an increase of 8% for both share classes.

Net income*** (including special items) was €88 million, or €0.54 per ordinary share and €0.54 per preference share.

*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.
**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.
***Net income attributable to Fresenius SE.

Continued investments in growth
The Fresenius Group spent €124 million in Q1 2010 on property, plant and equipment (Q1 2009: €128 million). Acquisition spending was €81 million (Q1 2009: €112 million).

Excellent cash flow development
Operating cash flow increased significantly to €438 million (Q1 2009: €182 million), driven by strong earnings growth and tight working capital management. The cash flow margin improved to 12.0% (Q1 2009: 5.4%). Net capital expenditure was only €130 million (Q1 2009: €147 million). Cash flow before acquisitions and dividends significantly improved to €308 million (Q1 2009: €35 million). Free cash flow after acquisitions and dividends was €218 million (Q1 2009: -€62 million).

Solid balance sheet structure
The Fresenius Group's total assets grew by 6% to €22,048 million (December 31, 2009: €20,882 million). In constant currency, the increase was 1%. Current assets increased by 4% in constant currency and by 8% at actual rates to €5,795 million (December 31, 2009: €5,363 million). Non-current assets were at €16,253 million, an increase of 5% (December 31, 2009: €15,519 million).

Total shareholders' equity increased by 7% to €8,182 million (December 31, 2009: €7,652 million). The equity ratio (including noncontrolling interest) improved to 37.1% (December 31, 2009: 36.6%).

Group debt grew by 2% to €8,500 million (December 31, 2009: €8,299 million). In constant currency, Group debt decreased by 2%. In Q1 2010, Fresenius considerably improved the terms of its 2008 syndicated credit agreement. Pursuant to the amended agreement, the interest rate of the approximately US$1.2 billion term loan B (new term loan C) will be reduced by one-third. The new applicable interest rate will consist of the relevant money market rate (LIBOR and EURIBOR) subject to a 1.50% floor (formerly 3.25%), plus a 3.00% margin (formerly 3.50%). One-time charges related to the amendment slightly impacted Fresenius' results for the first quarter of 2010. Fresenius expects a positive contribution from the amendment for the full fiscal year.

The net debt/EBITDA ratio remained unchanged at 3.0 as of March 31, 2010 (December 31, 2009: 3.0). In constant currency, the net debt/EBITDA continued to improve.

Number of employees increased
As of March 31, 2010, Fresenius employed 132,246 people (December 31, 2009: 130,510). This is an increase of 1%.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.

Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.
Fresenius Biotech reported sales of approximately €0.8 million with the trifunctional antibody Removab (catumaxomab) in the first quarter of 2010. Market launches in other European countries are in preparation.

Fresenius Biotech's EBIT was -€8 million (Q1 2009: -€10 million). For 2010, Fresenius Biotech confirms its guidance of an EBIT between -€35 and -40 million.

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of March 31, 2010, Fresenius Medical Care was treating 198,774 patients in 2,580 dialysis clinics.
.

• High organic sales growth of 8%
  2010 outlook fully confirmed

Fresenius Medical Care achieved sales growth of 13% to US$2,882 million (Q1 2009: US$2,560 million). Organic growth accounted for 8%, acquisitions contributed 2% and currency translation contributed a further 3%.

Sales in dialysis care increased by 13% to US$2,171 million (Q1 2009: US$1,923 million). Dialysis product sales grew by 12% at actual rates and 5% in constant currency to US$711 million (Q1 2009: US$636 million).

In North America, sales increased by 10% to US$1,960 million (Q1 2009: US$1,774 million). Dialysis services revenue increased by 12% to US$1,760 million. Average revenue per treatment for U.S. clinics increased to US$355 in the first quarter of 2010 compared to US$338 for the corresponding quarter in 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Sales in dialysis products improved by 1% to US$200 million.

Sales outside North America ("International" segment) grew by 17% at actual rates and by 8% in constant currency to US$922 million (Q1 2009: US$786 million). Sales in dialysis care increased by 19% (9% in constant currency) to US$411 million. Dialysis product sales improved by 16% (7% in constant currency) to US$511 million.

EBIT increased by 7% to US$423 million (Q1 2009: US$396 million) resulting in an EBIT margin of 14.7% (Q1 2009: 15.5%). In North America, the EBIT margin increased to 15.6% (Q1 2009: 15.3%). The margin development was favorably influenced by an increase in revenue per treatment and cost-containment measures.

In the International segment, the EBIT margin was 16.4% (Q1 2009: 18.7%). The EBIT margin was impacted by the devaluation of the Venezuelan bolivar and related charges.
Net income* increased by 7% to US$211 million (Q1 2009: US$198 million).

For 2010, Fresenius Medical Care expects to achieve revenue of more than US$12 billion. Net income* is expected to be between US$950 and 980 million.

For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.

*Net income attributable to Fresenius Medical Care AG & Co. KGaA

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

High organic sales growth of 9%
2010 outlook fully confirmed

Sales increased by 11% to €800 million (Q1 2009: €722 million). Organic sales growth was 9%. Acquisitions contributed 1%. Currency translation had a positive impact of 1%.

In Europe, sales reached €409 million (Q1 2009: €376 million), driven by 6% organic growth. In North America, sales increased to €179 million (Q1 2009: €168 million). Organic growth was 11%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 14% to €128 million (Q1 2009: €111 million). Sales in Latin America and Africa increased to €84 million (Q1 2009: €67 million), and organic growth was 7%.

EBIT grew by 5% to €145 million (Q1 2009: €138 million). The EBIT margin was 18.1% (Q1 2009: 19.1%). As expected, the EBIT margin decreased mainly due to delayed IV drug product launches and continued price competition in the U.S. market. Net interest improved slightly to -€74 million (Q1 2009: -€79 million). Net income* grew by 21% to €46 million (Q1 2009: €38 million).

Sales at APP Pharmaceuticals increased by 12% to US$216 million (Q1 2009: US$192 million). APP Pharmaceuticals achieved significant sales growth of 14% in its product portfolio excluding heparin. Adjusted EBITDA** reached US$72 million (Q1 2009: US$81 million). EBIT was US$55 million (Q1 2009: US$61 million). The EBIT margin was 25.6%.

Operating cash flow of Fresenius Kabi increased significantly to €74 million (Q1 2009: €40 million). The cash flow margin improved to 9.3% (Q1 2009: 5.5%). Cash flow before acquisitions and dividends was strong at €42 million (Q1 2009: €3 million).

Fresenius Kabi fully confirms its outlook for 2010: The company targets organic sales growth between 7 and 9% for 2010. Furthermore, Fresenius Kabi forecasts an EBIT margin between 18 and 19%.

Special items relating to the acquisition of APP Pharmaceuticals are included in the segment "Corporate/Other".

*Net income attributable to Fresenius Kabi AG.
**Non-GAAP financial measures - Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP.

Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 61 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof ~600,000 in-patients, and operates a total of more than 18,500 beds.

Continued high organic sales growth of 6%
2010 outlook fully confirmed

Sales increased by 5% to €608 million (Q1 2009: €577 million). Organic growth was again strong and achieved 6%. This was driven by an increase in hospital admissions. Divestitures reduced sales growth by 1%.

EBIT grew by 18% to €52 million (Q1 2009: €44 million). The EBIT margin improved to 8.6% (Q1 2009: 7.6%). Net income* increased by 40% to €28 million (Q1 2009: €20 million).

Fresenius Helios fully confirms its outlook for 2010. The company expects to achieve organic sales growth of 3 to 5%. EBIT is projected to be between €220 and 230 million..

*Net income attributable to HELIOS Kliniken GmbH.

Fresenius Vamed
Fresenius Vamed offers engineering and services for hospitals and other health care facilities. 
 

Order intake nearly tripled - order backlog at new all-time high
Outlook 2010 fully confirmed

Sales increased by 34 % to €156 million (Q1 2009: €116 million). This excellent increase was fully achieved by organic growth. Sales in the project business rose by 50% to €102 million (Q1 2009: €68 million). Sales in the service business increased by 13% to €54 million (Q1 2009: €48 million).

EBIT increased by 75% to €7 million (Q1 2009: €4 million). The EBIT margin improved to 4.5% (Q1 2009: 3.4%). Net income* rose by 50% to €6 million (Q1 2009: €4 million).

The excellent development of order intake and order backlog continued: Order intake in the project business nearly tripled to €260 million (Q1 2009: €88 million). This includes two turnkey contracts, for a hospital in Austria with an order volume of €102 million, and for a hospital with a cancer clinic in Gabon with an order volume of €43 million. Order backlog increased to a new all-time high of €838 million (December 31, 2009: €679 million, +23%).

Fresenius Vamed fully confirms the outlook for 2010 and expects to achieve both sales and EBIT growth between 5 and 10%.

*Net income attributable to VAMED AG.

Analyst Meeting and Audio Webcast
As part of the publication of the results for the first quarter 2010, a conference call will be held on May 4, 2010 at 2.00 p.m. CEDT (8.00 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 recording of the conference will be available on our website.

Contact

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

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Fresenius Medical Care's Chief Executive Officer, Dr. Ben Lipps, continues to see attractive growth opportunities, confirming the company's positive outlook for the 2010 financial year at the annual general meeting in Frankfurt today. Lipps: "The 2009 fiscal year was another very successful one for Fresenius Medical Care. Once again, we were able to demonstrate that Fresenius Medical Care's business model is robust and sustainable. We had a very good start into 2010. We are clearly on track to meet our targets for the full year and achieve another record year." For 2010, Fresenius Medical Care expects more than $12 billion in revenue and net income* between $950 million and $980 million.

Lipps also expects continued sustainable growth driven by an annual 5% to 6% increase in patients requiring dialysis treatment worldwide. Furthermore, Fresenius Medical Care will pursue strategic opportunities to consolidate its leading market positions. Key drivers of these opportunities include: increasing market share through a superior product portfolio, a strong commitment to quality, expanding the clinic network, a focus on integrated care and rolling out additional dialysis services.

Lipps also pointed out a significant increase in its number of employees. The addition of 3,322 people, an increase of 5.0% to a total of approximately 68,000 employees worldwide, was attributed primarily to strong organic growth of the dialysis care business in every region. Selected acquisitions also contributed to this growth. The number of employees is expected to rise again in 2010.

During the annual general meeting, the shareholders approved the 13th consecutive dividend increase with a large majority of 99.02%. The dividend will increase to €0.61 from €0.58 per ordinary share and to €0.63 from €0.60 per preference share.

With a further majority of 96.80%, shareholders also approved cancellation of the existing authorized capital along with the creation of new authorized capitals identical to those expiring in August 2010 and totaling up to €35 million and €25 million, respectively.

In addition, shareholders approved the actions taken and decisions made by the supervisory board and the management board with a majority of more than 99%.

At the annual general meeting, 74.36% of the subscribed capital was represented. Only ordinary-share holders were entitled to vote.

*Net income attributable to FMC AG & Co. KGaA

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Fresenius SE shareholders today approved the conversion of all preference shares into ordinary shares along with a change of the company's legal form into a partnership limited by shares - Kommanditgesellschaft auf Aktien (KGaA). At the company's annual general meeting held today in Frankfurt am Main, a 98% majority of ordinary shareholders and a 94% majority of preference shareholders voted for the corresponding resolution from the company's management and supervisory boards. All non-voting Fresenius SE preference shares will mandatorily be converted into voting ordinary shares at a 1:1 exchange ratio. The legal form of the company will be changed into a KGaA. The general partner of the KGaA will be a European company, Fresenius Management SE, wholly owned by the Else Kröner-Fresenius Foundation. The general partner's management will be identical to Fresenius SE's current executive team and will assume the management of Fresenius SE & Co. KGaA. The change of legal form and the actual share conversion are expected in or after the second half of 2010.

Ulf Mark Schneider, CEO of Fresenius SE, said the share conversion in conjunction with the new legal form will support the continued successful development of the company: "The creation of a single share class will enhance the attractiveness of Fresenius stock and further strengthen our position in the capital markets. At the same time, the company will continue to benefit from the ongoing and full support of the Else Kröner-Fresenius Foundation as a reliable long-term shareholder. Our corporate strategy and focus on profitable growth will remain unchanged."

Based on the successful first quarter, Schneider also fully confirmed the company's outlook for the current year: Sales growth in constant currency is projected to be in the 7 to 9% range. Adjusted net income* is expected to increase by 8 to 10% in constant currency. The company expects net income to be at the upper end of the range of its full-year guidance.

During the annual general meeting, Fresenius shareholders approved the 17th consecutive dividend increase with a majority of over 99%. Ordinary shareholders will receive € 0.75 per share (2008: € 0.70) and preference shareholders will receive € 0.76 per share (2008: € 0.71). This is an increase of 7%. The total dividend distribution is € 121.8 million (2008: € 113.6 million).

Since the term of office of the current Fresenius SE supervisory board members ends upon the change of the legal form, the annual general meeting also had to appoint shareholder representatives to the supervisory board of Fresenius SE & Co. KGaA. Professor Michael Albrecht, Professor Roland Berger, Dr. Gerd Krick, Klaus-Peter Müller, Gerhard Roggemann and Dr. Gerhard Rupprecht were elected to the board, which will continue to consist of six shareholder and six employee representatives.

At the company's annual general meeting, 88% of the ordinary share capital and 62% of the preference share capital were represented. A shareholder majority of over 99% approved the actions of both the management and supervisory boards in 2009.

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.