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HELIOS Kliniken GmbH, a subsidiary of Fresenius, strengthens its position as the largest private hospital operator in the state of North-Rhine Westphalia, Germany. The company has agreed to acquire 51 percent of the share capital in Katholisches Klinikum Duisburg hospital (KKD). The remaining share capital will be held by local institutions related to the Catholic Church.

KKD operates a maximum care hospital with four locations in Duisburg and a total of 1,034 beds as well as a rehabilitation clinic with 220 beds. KKD also operates two nursing care facilities. In 2010, KKD's hospitals provided inpatient care for about 30,000 patients (thereof 26,500 in acute care). KKD has about 2,200 employees and achieved 2010 sales of approximately € 134 million.

HELIOS will establish two new hospital buildings to consolidate KKD's acute care operations into two locations. The total investments by the company will be approximately € 176 million, over five years.

HELIOS already operates 10 acute care hospitals in North-Rhine Westphalia including maximum care facilities in Wuppertal and Krefeld.

The acquisition is still subject to the approval of antitrust authorities and is expected to close in the first quarter of 2012. The parties agreed not to disclose the purchase price.

The acquisition will be financed from cash flow. For 2012, the KKD as well as the Damp acquisition and Fresenius Medical Care's recently announced acquisitions are not expected to lead to Group leverage above the target range of 2.5 to 3.0 net debt/EBITDA.

"The acquisition of this maximum care hospital is another important step in the growth strategy for our hospital business. It provides an excellent geographic and medical fit to the HELIOS network. The HELIOS success story at the nearby Krefeld hospital shows that we can successfully develop maximum care facilities under private ownership", said Dr. Ulf M. Schneider, CEO of Fresenius.

Fresenius Helios is one of the largest private hospital operators in Germany. HELIOS owns 64 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof approximately 650,000 inpatients, and operates about 19,000 beds.

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Summary Third Quarter 2011

Net revenue                 $3,242 million             +6%

Operating income
(EBIT)                         $534 million               +8%

Net income*                 $279 million               +13%

Earnings per share        $0.92                         +12%

Summary First Nine Months 2011

Net revenue                  $9,473 million            +7%

Operating income
(EBIT)                         $1,488 million             +7%

Net income*                 $761 million               +8%

Earnings per share        $2.51                         +7%

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

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2011.


Third Quarter 2011

Revenue

Net revenue for the third quarter of 2011 increased by 6% to $3,242 million (+4% at constant currency) compared to the third quarter of 2010. Organic revenue growth worldwide was 1%. Dialysis services revenue grew by 4% to $2,425 million (+3% at constant currency) and dialysis product revenue increased by 11% to $817 million (+5% at constant currency).

North America revenue for the third quarter of 2011 decreased by 1% to $2,050 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Dialysis services revenue decreased by 1% to $1,846 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics decreased to $345 in the third quarter of 2011 compared to $359 for the corresponding quarter in 2010 reflecting the implementation of the new prospective payment system. Dialysis product revenue decreased by 2% to $204 million, as increased sales of hemodialysis products could not entirely offset lower pricing of renal drugs.

International revenue increased by 20% to $1,187 million (+13% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 26% to $579 million (+20% at constant currency). Dialysis product revenue increased by 15% to $608 million and increased by 7% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialyzers, solutions, concentrates and dialysis machines.

Earnings

Operating income (EBIT) for the third quarter of 2011 increased by 8% to $534 million compared to $493 million in the third quarter of 2010. This resulted in an operating margin of 16.5% for the third quarter of 2011 compared to 16.1% for the corresponding quarter in 2010.

In North America, the operating margin increased from 18.1% in the third quarter of 2010 to 18.3% in the third quarter of 2011. This increase was mainly favorably influenced by the development of pharmaceutical costs and a positive impact from a royalty adjustment for Venofer®. Average costs per treatment for U.S. clinics decreased to $279 in the third quarter of 2011 compared to $289 for the corresponding quarter in 2010.

In the International segment, the operating margin increased from 15.8% to 17.3% mainly due to lower manufacturing costs, favorable exchange rate effects and business growth in Asia-Pacific.

Net interest expense for the third quarter of 2011 was $68 million compared to $70 million in the third quarter of 2010. This development was mainly attributable to increased interest income related to the loan to Renal Advantage Partners.

Income tax expense was $163 million for the third quarter of 2011 compared to $153 million in the third quarter of 2010. The effective tax rate decreased to 35.0% from 36.2%.

Net income attributable to Fresenius Medical Care AG & Co. KGaA for the third quarter of 2011 was $279 million, an increase of 13% compared to the corresponding quarter of 2010.

Earnings per share (EPS) for the third quarter of 2011 rose by 12% to $0.92 per ordinary share compared to $0.82 for the third quarter of 2010. The weighted average number of shares outstanding for the third quarter of 2011 was approximately 303.2 million shares compared to 301.2 million shares for the third quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash Flow

In the third quarter of 2011, the company generated $463 million in cash from operations, representing approximately 14% of revenue. The cash flow generation was supported by a favorable development of days sales outstanding (DSO) and increased earnings.

A total of $150 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $313 million compared to $263 million in the third quarter of 2010. A total of $49 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was $264 million compared to $176 million in the third quarter of 2010.


Nine Months Ended September 30, 2011

Revenue and Earnings

Net revenue for the first nine months of 2011 increased by 7% to $9,473 million (+4% at constant currency) compared to the first nine months of 2010. Organic revenue growth was 2% in the first nine months of 2011.

Operating income (EBIT) for the first nine months of 2011 increased by 7% to $1,488 million compared to $1,385 million in the first nine months of 2010, resulting in an operating margin of 15.7% compared to 15.6% for the first nine months of 2010.

Net interest expense for the first nine months of 2011 was $214 million compared to $206 million in the same period of 2010.

Income tax expense for the first nine months of 2011 was $436 million compared to $410 million in the same period in 2010, reflecting effective tax rates of 34.2% and 34.7%, respectively.

For the first nine months of 2011, net income attributable to Fresenius Medical Care AG & Co. KGaA was $761 million, up by 8% from the first nine months of 2010.

In the first nine months of 2011, earnings per ordinary share rose by 7% to $2.51. The weighted average number of shares outstanding during the first nine months of 2011 was approximately 302.7 million.

Cash Flow

Cash from operations during the first nine months of 2011 was $950 million compared to $1,027 million for the same period in 2010, representing approximately 10% of revenue.

A total of $380 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2011 was $570 million compared to $688 million in the same period in 2010. A total of $1,171 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was -$601 million compared to $318 million in the first nine months of last year.

Please refer to the attachments for a complete overview on the third quarter and first nine months of 2011.

Patients – Clinics – Treatments

As of September 30, 2011, Fresenius Medical Care treated 228,239 patients worldwide, which represents a 9% increase compared to the previous year's figure. North America provided dialysis treatments for 140,422 patients, an increase of 3%. Including 22 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 141,809. The International segment provided dialysis treatments to 87,817 patients, an increase of 18% over the prior year's figure.

As of September 30, 2011, the company operated a total of 2,874 clinics worldwide, which represents a 6% increase compared to the previous year's figure. The number of clinics is comprised of 1,838 clinics in North America (1,860 including managed clinics), and 1,036 clinics in the International segment, representing an increase of 2% and 14%, respectively.

During the first nine months of 2011, Fresenius Medical Care delivered approximately 25.46 million dialysis treatments worldwide. This represents an increase of 9% compared to last year's figure. North America accounted for 16.11 million treatments, an increase of 4%. The International segment delivered 9.35 million treatments, an increase of 18%.

Employees

As of September 30, 2011, Fresenius Medical Care had 77,825 employees (full-time equivalents) worldwide compared to 73,452 employees at the end of 2010. This increase of more than 4,300 employees is due to overall growth in the company's business and acquisitions.

Debt/EBITDA Ratio

The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.37 at the end of the third quarter of 2010 to 2.55 at the end of the third quarter of 2011. The debt/EBITDA ratio at the end of the second quarter 2011 was 2.77.

Rating

Standard & Poor's Ratings Services rates the company's corporate credit as ‘BB' with a ‘positive' outlook. Moody's rates the company's corporate credit as ‘Ba1' with a ‘stable' outlook, and 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.

Acquisition of American Access Care Completed

The American Accesss Care (AAC) acquisition was closed effective October 1, 2011. AAC operates 28 freestanding out-patient centers primarily dedicated to serving vascular access needs of dialysis patients. The acquired operations will add approximately $175 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed

After the recent clearance by the European Union antitrust commissions the formation of Vifor Fresenius Medical Care Renal Pharma Ltd. has been completed globally on November 1, 2011.

Acquisition of Liberty Dialysis Holdings, Inc.

The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is expected to close in the first quarter of 2012.

Issuance of floating rate senior notes

In October 2011, Fresenius Medical Care issued €-denominated floating rate senior notes in the principal amount of €100 million, due 2016. The coupon is equal to the three-month Euribor rate plus 350 basis points.

Issuance of senior notes

In September 2011, Fresenius Medical Care issued $-denominated and €-denominated senior unsecured notes in the principal amounts of $400 million and €400 million, respectively, both due 2018. The coupon for the $ senior notes is 6.5%, and the coupon for the € senior notes is also 6.5%. Proceeds amounting to $949 million from the offering were used for acquisitions, to refinance indebtness and for general corporate purposes.

Sales and earnings outlook for 2011 confirmed

For the full year 2011, the company confirms its sales and earnings outlook.

Revenue is expected to grow to above $13 billion.

Net income attributable to Fresenius Medical Care AG & Co. KGaA is expected to be between $1.070 billion and $1.090 billion.

For 2011, the company expects to spend around 5% of revenue on capital expenditures and approximately $1.9 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2011.

"With our execution to date we continue to achieve a strong operational performance with a strong focus on quality and expense control. We expect further earnings momentum in the fourth quarter this year, supported by the recent acquisitions and cost management. We are fully on track to achieve our full year guidance", said Ben Lipps, chief executive officer of Fresenius Medical Care. "We are particularly pleased with our success globally, given a persistently challenging business environment and the ongoing implementation of the new prospective payment system in the U.S. Our emphasis on innovation and patient care continues to serve us well."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2011 on Wednesday, November 2, 2011, at 3:30 p.m. CET / 10:30 a.m. EDT. The company invites investors to listen to the live webcast of the call at the company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

Contact

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

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Q1-3 2011:

• Sales: €12.1 billion, +2% at actual rates, +5% in constant currency
• EBIT: €1,862 million, +5% at actual rates, +9% in constant currency
• Net income*: €565 million, +14% at actual rates, +17% in constant currency

• Fresenius improves 2011 earnings1 outlook of 15% to 18% constant currency growth to upper half of range
• Group earnings at single-quarter all-time high – €202 million net income1, record 16% EBIT margin
• Fresenius Medical Care with further margin improvement and strong earnings growth
• Fresenius Kabi with 3% organic sales growth over outstanding Q3 2010
• Fresenius Helios continues expansion in the German hospital market - raises earnings guidance
• Fresenius Vamed with excellent order intake of €171 million in Q3

*Net income attributable to Fresenius SE & Co. KGaA; 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, commented: "Fresenius had a very strong third quarter. With a Group EBIT margin of 16% and net income of €202 million we reached new all-time highs. We improve our 2011 earnings outlook and expect to achieve the upper half of our 15% to 18% target range. HELIOS' acquisitions of the private hospital chain Damp and the maximum care hospital in Duisburg significantly strengthen our presence in the German hospital market. This marks a further step in our growth strategy, which combines organic growth and acquisitions."

Group outlook 2011
Fresenius improves its 2011 earnings guidance and expects to achieve constant currency net income* growth in the upper half of the 15% to 18% range. Based on the sales growth of the first three quarters, Fresenius now expects to increase sales by c. 6% in constant currency.

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

In 2011, the net debt/EBITDA ratio is expected to stay in the range of 2.5 to 3.0. For calendar year 2012, Fresenius Medical Care's and Fresenius Helios' recently announced entirely debt and cash flow-financed acquisitions are not expected to cause Group leverage to exceed that target range.

*Net income attributable to Fresenius SE & Co. KGaA; 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 5% in constant currency
Group sales increased by 2% (5% in constant currency) to €12,089 million (Q1-3 2010: €11,821 million). Organic sales growth was 4%. Acquisitions contributed a further 1%. Currency translation had a negative effect of 3%. This is mainly attributable to the average USD/EUR rate in Q1-3 2011 decreasing 8% compared to Q1-3 2010.

Sales growth in the business segments was as follows:


 
Organic sales growth was 1% in North America, due to the implementation of the new Medicare end-stage renal disease prospective payment system as well as lower pricing of renal drugs. In Europe organic sales growth was 3%. Prior-year sales in Europe were positively influenced by Fresenius Vamed's large medical supply contract to the Ukraine. Organic sales growth reached 12% in Africa and 15% in both Latin America and Asia-Pacific.



Continued strong earnings growth
Group EBITDA grew by 4% (8% in constant currency) to €2,344 million (Q1-3 2010: €2,244 million). Group EBIT increased by 5% (9% in constant currency) to €1,862 million (Q1-3 2010: €1,776 million). The EBIT margin improved by 40 basis points to 15.4% (Q1-3 2010: 15.0%). In Q3 2011, the Group achieved a strong EBIT margin of 16.0%.

Group net interest was -€401 million (Q1-3 2010: -€424 million).

The other financial result was -€100 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€105 million and the Contingent Value Rights (CVR) of €5 million. Both are non-cash items. As the CVR were delisted in March 2011, the effect relates solely to Q1 2011. As the MEB came to maturity on August 14, 2011, no further effect will occur after Q3 2011. Upon maturity, the bonds were mandatorily exchanged into ordinary shares of Fresenius Medical Care AG & Co. KGaA. Fresenius' shareholding now amounts to 30.3% of Fresenius Medical Care's ordinary share capital.

The Group tax rate* was 30.9% (Q1-3 2010: 32.2%).

Noncontrolling interest increased to €445 million (Q1-3 2010: €421 million), of which 93% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income** increased by 14% (17% in constant currency) to €565 million (Q1-3 2010: €495 million). In Q3 2011, Group net income** reached a new all-time high of €202 million (Q3 2010: €193 million). In Q1-3 2011, earnings per share increased by 13% to €3.47.

A reconciliation to adjusted earnings according to U.S. GAAP can be found on page 15 of this Press Release.

Group net income*** (including special items) reached €485 million or €2.98 per share.

*Adjusted for the effect of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) related to the acquisition of APP Pharmaceuticals
**Net income attributable to Fresenius SE & Co. KGaA; 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 & Co. KGaA

Continued investments in growth
The Fresenius Group spent €480 million on property, plant and equipment (Q1-3 2010: €494 million). Acquisition spending was €908 million (Q1-3 2010: €223 million), mainly due to the acquisitions of Euromedic's dialysis service business as well as a minority stake in Renal Advantage, Inc., both by Fresenius Medical Care.

Cash flow development
Operating cash flow was €1,156 million (Q1-3 2010: €1,346 million). The strong earnings growth was offset by increased working capital requirements due to business expansion. The cash flow margin was 9.6% (Q1-3 2010: 11.4%). Net capital expenditure was €475 million (Q1-3 2010: €491 million). Free cash flow before acquisitions and dividends was €681 million (Q1-3 2010: €855 million). Free cash flow after acquisitions and dividends was -€538 million (Q1-3 2010*: €348 million).

*Does not include a €100 million cash out for a short-term bank deposit by Fresenius Medical Care in 2010.

Solid balance sheet structure
The Group's total assets increased by 5% to €24,707 million (Dec. 31, 2010: €23,577 million). In constant currency, the increase was 6%. Current assets increased by 6% (8% in constant currency) to €6,836 million (Dec. 31, 2010: €6,435 million). Non-current assets increased by 4% (5% in constant currency) to €17,871 million (Dec. 31, 2010: €17,142 million).

Due to the maturity of the MEB, total shareholders' equity increased by 14% (16% in constant currency) to €10,049 million (Dec. 31, 2010: €8,844 million). The equity ratio improved to 40.7% (Dec. 31, 2010: 37.5%).

Group debt grew by 5% (also 5% in constant currency) to €9,181 million (Dec. 31, 2010: €8,784 million) primarily resulting from acquisition financing. Net debt increased by 6% (7% in constant currency) to €8,527 million (Dec. 31, 2010: €8,015 million).

The net debt/EBITDA ratio increased slightly to 2.70 as of September 30, 2011 (Dec. 31, 2010: 2.62).

Number of employees increased
As of September 30, 2011, Fresenius Group increased the number of its employees by 6% to 145,118 (Dec. 31, 2010: 137,552).

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.

Sales increased by 13% to €22.4 million (Q1-3 2010: €19.9 million). ATG sales increased by 11% to €19.7 million and Removab sales by 29% to €2.7 million.

In 2011, Removab was launched in the Benelux countries, Italy, Scandinavia and the UK. The trifunctional antibody has already been marketed in Austria and France since 2010 and was launched in Germany in 2009.

Fresenius Biotech's EBIT was -€19 million (Q1-3 2010: -€21 million). For 2011, Fresenius Biotech expects an EBIT of about -€30 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 September 30, 2011, Fresenius Medical Care was treating 228,239 patients in 2,874 dialysis clinics.

• Strong earnings growth and further margin improvement
• 2011 outlook confirmed

Fresenius Medical Care achieved sales growth of 7% to US$9,473 million (Q1-3 2010: US$8,886 million). Organic sales growth was 2%, acquisitions contributed a further 2%.

Sales in dialysis services increased by 5% to US$7,072 million (Q1-3 2010: US$6,716 million). Dialysis product sales grew by 11% to US$2,401 million (Q1-3 2010: US$2,170 million).

In North America sales were US$6,055 million (Q1-3 2010: US$6,058 million). Dialysis services sales were US$5,456 million (Q1-3 2010: US$5,441 million). Average sales per treatment for U.S. clinics was US$345 in Q3 2011 compared to US$359 in Q3 2010. This is a result of the implementation of the Medicare end-stage renal disease prospective payment system. Dialysis product sales decreased to US$599 million (Q1-3 2010: US$617 million) as increased sales of hemodialysis and peritoneal dialysis products could not entirely offset lower pricing of renal drugs.

Sales outside North America ("International" segment) grew by 20% to US$3,405 million (Q1-3 2010: US$2,828 million). Sales in dialysis services increased by 27% to US$1,616 million. Dialysis product sales increased by 15% to US$1,789 million.

EBIT increased by 7% to US$1,488 million (Q1-3 2010: US$1,385 million). The EBIT margin improved by 10 basis points to 15.7% (Q1-3 2010: 15.6%).

In North America the EBIT margin increased to 17.1% (Q1-3 2010: 16.7%). This increase was mainly favorably influenced by the development of pharmaceutical costs.

In the International segment the EBIT margin remained at the previous year's level of 17.0%.

Net income* increased by 8% to US$761 million (Q1-3 2010: US$707 million).

Fresenius Medical Care confirms the outlook for 2011. The company projects sales of more than US$13 billion. Net income* is expected between US$1,070 million and US$1,090 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 outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

• Organic sales growth of 9%, strong EBIT margin of 20.8%
• 3% organic sales growth over outstanding Q3 2010
• 2011 outlook improved – Organic sales growth between 8% and 8.5%, EBIT margin ≥20%

Fresenius Kabi reported excellent financial results. In Q3 2011, Fresenius Kabi achieved 3% organic sales growth over previous year's outstanding quarter. Q3 2010 results were driven by significant supply constraints in the injectable drug market in North America.

In Q1-3 2011, sales increased by 8% to €2,950 million (Q1-3 2010: €2,723 million). Organic sales growth was 9%, acquisitions contributed 1%. Currency translation had a negative effect of 2%. This is mainly attributable to the U.S. dollar weakness against the euro.

In Europe sales grew by 8% to €1,360 million (Q1-3 2010: €1,264 million), driven by organic sales growth of 6%. In North America sales were impacted by currency translation and increased by 3% to €755 million (Q1-3 2010: €730 million). Organic sales growth was 10%. In Asia-Pacific sales increased by 17% to €511 million (Q1-3 2010: €436 million), with excellent organic sales growth of 18%. Sales in Latin America and Africa increased by 11% to €324 million (Q1-3 2010: €293 million), with organic sales growth contributing 11%.

EBIT grew by 10% to €613 million (Q1-3 2010: €557 million). The EBIT margin improved to 20.8% (Q1-3 2010: 20.5%). EBIT growth was mainly attributable to the strong development in North America and the emerging markets.

Net interest remained at the previous year's level of -€212 million.

Net income* increased by 19% to €271 million (Q1-3 2010: €228 million).

Fresenius Kabi's operating cash flow was €350 million (Q1-3 2010: €378 million), resulting in a cash flow margin of 11.9% (Q1-3 2010: 13.9%). Given increased capital expenditures, cash flow before acquisitions and dividends was €234 million (Q1-3 2010: €272 million).

In September 2011, Fresenius Kabi expanded its production capacity in Asia and opened a new production facility in Vietnam. With the new plant Fresenius Kabi almost doubles its local manufacturing capacity for infusion solutions and liquid medications. Most of these products are intended for the Vietnamese market. Total investment amounted to approximately €20 million.

Fresenius Kabi improves its outlook for 2011. The company now forecasts organic sales growth between 8% and 8.5%. Previously, Fresenius Kabi projected organic sales growth of ~8%. The EBIT margin is now expected to be ≥20%. The previous guidance was ~20%.

Fresenius Kabi plans to host a Capital Market Day on June 12, 2012 in Bad Homburg providing an update on the strategy and growth prospects of the company.

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

*Net income attributable to Fresenius Kabi AG

Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. HELIOS owns 64 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof approximately 650,000 inpatients, and operates about 19,000 beds.


 

• Organic sales growth of 4%, EBIT margin increase to 10%
• Expansion in the German hospital market – acquisition of Damp Group and Katholisches Klinikum Duisburg hospital
• 2011 EBIT outlook raised to €260 million to €270 million

Sales increased by 6% to €1,950 million (Q1-3 2010: €1,840 million), mainly driven by solid organic sales growth of 4%. Acquisitions contributed 2% to overall sales growth.

EBIT grew by 13% to €195 million (Q1-3 2010: €172 million). The EBIT margin improved by 70 basis points to 10.0% (Q1-3 2010: 9.3%).

Net income* increased by 19% to €117 million (Q1-3 2010: €98 million).

The established clinics increased sales by 4% to €1,916 million. EBIT improved by 16% to €199 million. The EBIT margin was 10.4%. The acquired clinics (consolidation < 1 year) achieved sales of €34 million and an EBIT of -€4 million. Restructuring of these hospitals is fully on track.

On October 12, HELIOS announced that it agreed to acquire 94.7% of the share capital in Damp Group. The acquisition of Damp is an excellent geographic fit with the HELIOS hospital network in the north and northeast of Germany.
Damp operates seven acute care hospitals and four post-acute care hospitals with a total of 4,112 beds (thereof 2,649 in acute care). In addition, Damp operates eight outpatient medical care centers, two nursing care facilities and a wellness resort. In 2010, Damp achieved sales of €487 million and operating profit (EBIT) of €21 million.

The acquisition is still subject to the approval of local and antitrust authorities. Due to the geographic proximity of the HELIOS hospital Schwerin, HELIOS has to divest the Damp hospital Wismar (505 beds, sales of approximately €60 million) to secure regulatory clearance of the transaction. HELIOS anticipates closing the transaction in the first half of 2012.

On October 31, HELIOS announced that it agreed to acquire 51% of the share capital in Katholisches Klinikum Duisburg hospital (KKD), North-Rhine Westphalia. KKD provides an excellent geographic and medical fit to the HELIOS network, as HELIOS already operates ten acute care hospitals in North-Rhine Westphalia including maximum care hospitals in Wuppertal and Krefeld.

KKD operates a maximum care hospital with four locations in Duisburg and a total of 1,034 beds as well as a rehabilitation clinic with 220 beds. KKD also operates two nursing care facilities. In 2010, KKD's hospitals achieved sales of approximately €134 million. HELIOS will consolidate the acute care hospitals into two locations and build two new hospitals. The total investments will be approximately €176 million, over five years. The acquisition is still subject to the approval of antitrust authorities. Closing of the transaction is anticipated in the first quarter of 2012.

The recent acquisitions are significant achievements in Fresenius Helios' growth strategy. As a result, a new mid-term sales guidance for Fresenius Helios will be provided in spring 2012. Currently, the company targets sales of €3.5 billion by 2015.

Fresenius Helios raises its earnings outlook and now projects EBIT of €260 million to €270 million. Previously, the company expected to reach an EBIT of ~€260 million. Fresenius Helios fully confirms its sales outlook and projects organic sales growth of 3% to 5%.

*Net income attributable to HELIOS Kliniken GmbH

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

• Sales and EBIT in line with expectations
• Excellent order intake of €171 million in Q3
• 2011 outlook confirmed

Fresenius Vamed's sales reached €480 million (Q1-3 2010: €517 million). Sales in the project business were €311 million (Q1-3 2010: €351 million). Prior-year sales included a substantial medical supply contract with the Ukraine. In addition, current sales were impacted by the unrest in the Middle East / North Africa region. Sales in the service business increased by 2% to €169 million (Q1-3 2010: €166 million).

EBIT was €22 million (Q1-3 2010: €24 million). The EBIT margin of 4.6% was at previous year's level. Net income* was €17 million (Q1-3 2010: €18 million).

Order backlog was €775 million as of September 30, 2011 (Dec. 31, 2010: €801 million). In Q3 2011, Fresenius Vamed achieved an excellent order intake of €171 million. New orders include turnkey contracts for the construction of a general hospital in Sochi, Russia (total order volume €98 million) as well as for the reconstruction of a general hospital in Hesse, Germany (total order volume €42 million). The order intake in Q1-3 2011 was €335 million (Q1-3 2010: €418 million).

Fresenius Vamed confirms the 2011 outlook. The company projects sales and EBIT growth of 0% to 5%.

*Net income attributable to VAMED AG

Analyst Meeting and Audio Webcast
As part of the publication of the results for Q1-3 2011, a conference call will be held on November 2, 2011 at 2.00 p.m. CET (9.00 a.m. EDT). You are cordially invited to follow the conference call in a live broadcast via the Internet at www.fresenius.com, Investor Relations, Presentations. Following the call, a replay of the conference call will be available on our website.

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Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today introduced the 2008K@home, a hemodialysis system for use at the patient's home, at the American Society of Nephrology's Kidney Week 2011 meeting in Philadelphia, USA. The 2008K@home machine is built on the 2008® series hemodialysis machine platform that has delivered superior hemodialysis therapy for over 30 years. This machine combines safety, efficacy and reliability with a simple user-interface that incorporates an on-screen tutorial to walk the user through set-up, treatment, and disconnection from therapy. Earlier this year, the U.S. Food and Drug Administration (FDA) cleared the 2008K@home machine for use.

"With the growing interest in home therapies in the U.S., the 2008K@home machine provides another option for delivering hemodialysis to patients who want the freedom associated with being at home," said Maureen Lyden-Green, Vice President for Home Therapies at Fresenius Medical Care North America. "The 2008K@home provides patients with a smaller version of the in-center machine and allows flexibility to deliver a customized physician's dialysis prescription for each patient, meeting the patient's medical needs and suiting their lifestyle," continued Chief Medical and Regulatory Affairs Officer Dr. Jose Diaz-Buxo.

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Fresenius SE & Co. KGaA („Fresenius") plans to increase its voting interest in Fresenius Medical Care AG & Co. KGaA („FME") through the purchase of approximately 3.5 million ordinary shares.

The planned transaction shall be executed through share purchases, carried out from time to time, in a manner intended to have minimal impact on FME's share price on the stock exchange.

After maturity of the Mandatory Exchangeable Bond on August 14, 2011, Fresenius' current voting interest in FME is 30.3%. The exercise of FME stock options could, however, dilute Fresenius' interest to 29.3% mid-term.

The planned share purchase is meant to preserve a long-term voting interest in FME above 30%, maintaining the current ownership situation. Under applicable German law, if Fresenius' ownership were to fall below 30% and Fresenius purchased additional ordinary shares to bring its ownership above 30%, Fresenius would become obligated to offer to purchase all of FME's shares. Upon completion of the purchase of approximately 3.5 million ordinary shares, Fresenius' voting interest in FME would increase to approximately 31.5%.

Fresenius' position as general partner of FME requires ownership of at least 25% of FME's share capital.

The number of shares to be purchased corresponds to the XETRA trading volume of four to five average trading days.

Based on FME‘s current share price, the financing requirement for Fresenius is approximately €180 million. It shall be funded from cash flow and existing credit lines. Fresenius expects its incremental share in FME's net income to exceed its cost of financing the share purchase. The planned share purchase is therefore expected to be slightly accretive to Group net income. From today's perspective, Group Net Debt/EBITDA, including the effect of the planned share purchase, will stay below 3.0 in 2012.

Fresenius will provide details on the share purchase upon its completion.

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The Supervisory Board of Fresenius Kabi AG today announced changes in the Management Board of Fresenius Kabi. Effective March 1, 2012 Mats Henriksson, who serves as Member of the Management Board of Fresenius Kabi AG and President of the region Asia Pacific, will be promoted to Deputy Chairman of the Management Board of Fresenius Kabi AG. On January 1, 2013 Mats will succeed Rainer Baule as President and CEO of the Management Board of Fresenius Kabi AG. The appointment of Mats Henriksson is part of the company's succession plan to ensure a smooth transition of leadership.

Effective March 1, 2012 Thomas Mechtersheimer, who has been Senior Vice President for Fresenius Medical Care South Asia Pacific, will join the Fresenius Kabi AG Management Board as Deputy Member and will assume the position of President of region Asia Pacific. As of January 1, 2013 Thomas Mechtersheimer will become a full Member of the Management Board of Fresenius Kabi AG.

Since May 2001, Rainer Baule has been responsible for Fresenius Kabi, the second largest business segment within Fresenius, specialized in i.v. drugs, infusion therapies and clinical nutrition for the hospital and the outpatient care. Over the course of his tenure, company sales tripled and the geographic footprint expanded substantially. Today, Fresenius Kabi counts among the leading companies in its business segments worldwide. Rainer, who turned 63 this year, joined Fresenius in 1997 as President of the former Fresenius HemoCare business segment and Member of the Management Board of Fresenius, before he took over the responsibility for Fresenius Kabi.

Mats Henriksson joined the company in 1999 as Member of the Management Board of Fresenius Kabi AG. Since 2001, he has been President of the region Asia Pacific. Under his leadership, Fresenius Kabi has seen continued strong growth in this region, which is proven by No 1 or No 2 market positions in most countries in Asia Pacific.

Before joining the company, Mats held several controlling and finance positions at Pharmacia & Upjohn. At the end of 1998, Pharmacia & Upjohn divested its Clinical Nutrition business to Fresenius and Mats became the Chief Financial Officer and Member of the Management Board of Fresenius Kabi AG. He is a Swedish citizen and studied Business Administration and Economics at the Gothenburg School of Economics, Sweden.

Thomas Mechtersheimer has been Senior Vice President for Fresenius Medical Care South Asia Pacific since 2007 and currently reports directly to Roberto Fusté, Chief Executive Officer of Fresenius Medical Care Asia Pacific. Over the years, Thomas significantly contributed to the growth of Fresenius Medical Care in Asia and has a deep understanding of the Asian market dynamics. Thomas joined Fresenius in 1995 and has since held several executive positions within the Asian organization. Prior to joining Fresenius Medical Care, he worked in Industrial Automation and Special Machinery companies, both in Sales as well as in Technical Services. Thomas studied International Business at the Reutlingen University, Germany.

Rainer Baule, CEO and President of Fresenius Kabi AG, said: "We are very pleased with the appointments of Mats as my successor and Thomas as new Board Member of Fresenius Kabi. Mats has an outstanding track record of results-oriented performance and successful management experience within Fresenius Kabi. This qualifies him perfectly to serve as CEO and President of Fresenius Kabi. Thomas is an excellent successor of Mats. With his extensive experience and his profound knowledge of the Asian Pacific market, I am confident Thomas will make significant contributions to continue the successful growth of Fresenius Kabi's business in this region. I look forward to working closely with both."

Ulf Mark Schneider, CEO of Fresenius and Chairman of the Supervisory Board of Fresenius Kabi AG, said: "Under Rainer Baule's leadership, Fresenius Kabi has grown significantly and developed into a global player in health care. This is the right time to begin a smooth transition of leadership. We are pleased to elevate Mats Henriksson to the new position of Deputy Chairman of Fresenius Kabi's Management Board. Building on his significant accomplishments in Asia Pacific, this role will prepare Mats for succeeding Rainer in leading the company. Thomas Mechtersheimer brings valuable international management experience and a deep understanding of the health care market dynamics that will be essential for the continued growth of our Fresenius Kabi business in Asia Pacific. Both appointments come from within Fresenius and this reflects the strength and depth of our management team. I am confident that Rainer, Mats and Thomas, along with their colleagues of the Fresenius Kabi Management Board, will continue to successfully grow the company".

New Management Board of Fresenius Kabi by March 1, 2012:

Rainer Baule
Chief Executive Officer (CEO) and Chairman of the Management Board

Mats Henriksson
Deputy Chairman of the Management Board

Marc Crouton
President of Region West & South Europe, Latin America & Africa

John Ducker
President Region North America

Manfred M. Köhler
President of Region Central/Eastern Europe, Nordics & Middle East

Thomas Mechtersheimer
Deputy Member and President Region Asia Pacific

Dr. Michael Schönhofen
President Science, Production & Technology

Gerrit Steen
Chief Financial Officer

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HELIOS Kliniken GmbH, a subsidiary of Fresenius, has completed the acquisition of 51% of the share capital of Katholisches Klinikum Duisburg (KKD), following approval by the German antitrust authority. The other shareholders of KKD are local institutions related to the Catholic Church. HELIOS will fully consolidate KKD's sales and earnings as of January 1, 2012. The acquisition was announced in October 2011.

KKD operates a maximum care hospital with four locations in Duisburg and a total of 1,034 beds as well as a rehabilitation clinic with 220 beds. KKD also operates two nursing care facilities. In 2010, KKD's hospitals provided inpatient care for about 30,000 patients (thereof 26,500 in acute care). KKD has about 2,200 employees and achieved 2010 sales of approximately €134 million.

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Fresenius Medical Care AG & Co. KGaA ("the company"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced revised outlook for revenue to be approximately 1.0% to 2.0% below the US-Dollar 13 billion benchmark. The impact on the revenue is predominately due to significant weakening of the Euro and other currencies against the US-Dollar in the fourth quarter of 2011. Nevertheless, the company continues to confirm its earnings after tax target in US-Dollar although expectations are that the net income attributable to the company will be at the low end of the target range of US-Dollar 1,070-1,090 million, principally due to the additional one-time costs incurred in 2011 related to acquisitions.

Ben Lipps, Chief Executive Officer and Chairman of the Management Board of Fresenius Medical Care: "The company is having another excellent year in 2011, meeting also the challenges of the reimbursement reform in the United States, growing our business substantially in all regions and managing the integration of a number of significant acquisitions."

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After a strong third quarter, Fresenius expects to achieve excellent fourth quarter earnings growth in 2011. In particular, Fresenius Kabi and Fresenius Helios have continued to perform strongly.

Therefore, Fresenius improves its 2011 earnings outlook slightly and now expects to achieve constant currency net income* growth of approximately 18%. Fresenius previously improved its earnings outlook of 15% to 18% constant currency growth to the upper half of this range on November 2, 2011.

Sales growth in constant currency is expected to just reach the targeted c. 6% as current sales at Fresenius Medical Care and Fresenius Vamed remain slightly below expectations. Fresenius Kabi and Fresenius Helios continued to see excellent sales growth and are fully on track to achieve their guidance.

*Net income attributable to Fresenius SE & Co. KGaA; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds and the Contingent Value Rights related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

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Fresenius Medical Care AG & Co. KGaA ("the company"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, is entering the dialysis services market in Ecuador. Effective December 1, the company has acquired eight private dialysis clinics which currently treat over 1,000 dialysis patients. The clinics are located in highly populated areas of Ecuador: Manabi province in the northwest, Guayaquil in the southwest, and the capital Quito. Fresenius Medical Care acquired them from an Ecuadorian family. The clinics will add around $17 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. Both parties have agreed not to disclose the purchase price.

Fresenius Medical Care has also agreed to acquire Nefrocontrol S.A., its local distribution partner in Ecuador since 1992, from the same owners. This acquisition will add another $7.5 million in annual revenue.

Both acquisitions will significantly strengthen Fresenius Medical Care's position in the dialysis market in Ecuador – a country in which currently over 6,000 patients require regular dialysis treatment. The number of dialysis patients in Ecuador is growing more rapidly than in most Latin American countries. To meet this rising demand, Fresenius Medical Care plans to expand the capacity of the acquired clinics.

"As a vertically integrated provider, we're delighted to offer patients in Ecuador top-quality dialysis services and products from a single source," said Dr. Emanuele Gatti, chief executive officer for Europe, Latin America, the Middle East and Africa, and global chief strategist of Fresenius Medical Care. "We aim to further expand our presence in Ecuador in the medium to long term. Our main objective is to provide the growing number of dialysis patients in the country with the best treatment possible."