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Q3/2014:
Sales: €6.0 billion (+20% in constant currency, +18% at actual rates)
EBIT¹: €820 million (+10% in constant currency, +9% at actual rates)
Net income²: €281 million (+5% in constant currency, +4% at actual rates)

Q1-3/2014: 
Sales: €16.7 billion (+14% in constant currency, +11% at actual rates) 
EBIT³: €2.2 billion (+3% in constant currency, +1% at actual rates)
Net income⁴: €768 million (+4% in constant currency, +2% at actual rates)
 
Ulf Mark Schneider, CEO of Fresenius, said: "Fresenius had a strong third quarter with growth accelerating in all four business segments. Emerging markets stood out with double-digit organic sales growth. We confirm our full year Group guidance and remain optimistic about the fundamental growth trends in our markets."
 
¹before integration costs
²Net income attributable to shareholders of Fresenius SE & Co. KGaA; before integration costs
³2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
⁴Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
 
2014 Group outlook¹ fully confirmed
Based on the Group's strong financial results in the first three quarters, Fresenius confirms its 2014 Group guidance. Sales are expected to increase by 14% to 16%, net income² is expected to increase by 2% to 5% (both in constant currency).
 
The net debt/EBITDA ratio is expected to be approximately 3.25 at year-end.
 
¹Includes contributions from the acquisition of hospitals from Rhön-Klinikum AG and acquisitions at Fresenius Medical Care
²Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
 

14% sales growth in constant currency
Group sales increased by 11% (14% in constant currency) to €16,711 million (Q1-3/2013: €15,032 million). Organic sales growth was 4%. Acquisitions contributed 11%. Divestitures reduced sales growth by 1%. In Q3/2014, Group sales increased by 18% (20% in constant currency) to €5,978 million (Q3/2013: €5,045 million). Organic sales growth was 6%.
 
Group sales by region developed as follows:

In the first nine months, organic sales growth was 4% in North America and 3% in Europe. In Asia-Pacific organic sales growth was 5%. In Latin America organic sales growth was 10%. In Africa, the decline in sales is mainly due to fluctuations in the project business at Fresenius Vamed. Adverse currency translation effects weighed on Group sales in Latin America (-17%), Asia-Pacific (-4%), Africa (-5%) and North America (-3%).
 
4% net income growth in constant currency
Group EBITDA¹ grew by 3% (5% in constant currency) to €2,905 million (Q1-3/2013: €2,824 million). Group EBIT¹ increased by 1% (3% in constant currency) to €2,223 million (Q1-3/2013: €2,202 million). The EBIT margin was 13.3% (Q1-3/2013: 14.6%). In Q3/2014 Group EBIT² was €820 million (Q3/2013: €754 million), the EBIT margin was 13.7% (Q3/2013: 14.9%).
 
Group net interest was -€431 million (Q1-3/2013:-€449 million). Improved financing terms as well as favorable currency effects contributed to the decrease.
 
The Group tax rate¹ was 29.5% and above the prior-year level (Q1-3/2013: 28.3%). This is mainly due to a special tax effect at Fresenius Medical Care in Q2/2014.
 
Noncontrolling interest was €495 million (Q1-3/2013: €504 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
 
Group net income³ increased by 2% (4% in constant currency) to €768 million(Q1-3/2013: €753 million). Earnings per share³ increased by 1% (2% in constant currency) to €1.42 (Q1-3/2013: €1.41). The weighted average number of shares outstanding was 539,976,138 (Q1-3/2013: 535,366,314). In Q3/2014, Group net income⁴ increased by 4% (5% in constant currency) to €281 million (Q3/2013: €271 million).
 
Group net income attributable to shareholders of Fresenius SE & Co. KGaA (including special items) increased by 11% (13% in constant currency) to €810 million (Q1-3/2013: €727 million). Earnings per share increased by 10% (12% in constant currency) to €1.50 (Q1-3/2013: €1.36). In Q3/2014, Group net income attributable to shareholders of Fresenius SE & Co. KGaA (including special items) increased by 4% (6% in constant currency) to €276 million (Q3/2013: €265 million). Earnings per share increased by 2% (4% in constant currency) to €0.51 (Q3/2013: €0.50).
 
¹2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
²2014 before integration costs; 2013 before integration costs
³Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
⁴Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs; 2013 before integration costs
 
Continued investment in growth
The Fresenius Group spent €854 million on property, plant and equipment (Q1-3/2013: €676 million). The Company primarily invested in the modernization and expansion of production facilities and hospitals as well as in the equipment of new, and the expansion of existing dialysis clinics.
 
Total acquisition spending was €1,861 million (Q1-3/2013: €442 million), including €805 million for the acquisition of hospitals from Rhön-Klinikum AG and €919 million for acquisitions at Fresenius Medical Care.
 
Strong cash flow margin increase in Q3
Operating cash flow increased by 8% to €1,695 million (Q1-3/2013: €1,566 million) with a margin of 10.1% (Q1-3/2013: 10.4%). The margin decrease was attributable to the payment for the W.R. Grace bankruptcy settlement of US$115 million in Q1/2014 and increased working capital at Fresenius Medical Care. Operating cash flow in Q3/2014 increased to €945 million with a margin of 15.8% (Q3/2013: €619 million with a margin of 12.3%). The strong Q3/2014 margin is due to the very good sequential and year-on-year cash flow development in all business segments.
 
Net capital expenditure increased to €848 million (Q1-3/2013: €659 million). Free cash flow before acquisitions and dividends was €847 million (Q1-3/2013: €907 million). Free cash flow after acquisitions and dividends was -€1,154 million (Q1-3/2013: €151 million).
 
¹see Annual Report 2013, page 150 f.
 
Solid balance sheet structure
The Group's total assets increased by 15% (10% in constant currency) to €37,718 million (Dec. 31, 2013: €32,758 million). This increase is mainly attributable to the first-time consolidation of hospitals acquired from Rhön-Klinikum AG, acquisitions at Fresenius Medical Care and currency effects. Current assets grew by 20% (16% in constant currency) to €9,584 million (Dec. 31, 2013: €7,972 million). Non-current assets increased by 14% (8% in constant currency) to €28,134 million (Dec. 31, 2013: €24,786 million).
 
Total shareholders' equity increased by 12% (7% in constant currency) to €14,854 million (Dec. 31, 2013: €13,260 million). The equity ratio was 39.4% (Dec. 31, 2013: 40.5%).
 
Group debt grew by 16% (11% in constant currency) to €14,878 million (Dec. 31, 2013: €12,804 million). Net debt was €13,843 million (Dec. 31, 2013: €11,940 million). The increase is mainly due to the hospitals acquired from Rhön-Klinikum AG, the acquisitions at Fresenius Medical Care as well as currency effects.
 
As of September 30, 2014, the net debt/EBITDA ratio was 3.44¹ (Dec. 31, 2013: 2.51²).
 
¹Pro forma including acquired Rhön hospitals, acquisition at Fresenius Medical Care and excluding two HELIOS hospitals; before integration costs and disposal gains (two HELIOS hospitals; Rhön stake)
²Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before integration costs
 
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, 2014, Fresenius Medical Care was treating 283,135 patients in 3,349 dialysis clinics.

• 7% organic sales growth in Q3
• 17.3% operating cash flow margin in Q3
• 2014 guidance confirmed

 
Sales increased by 7% (8% in constant currency) to US$11,511 million (Q1-3/2013: US$10,743 million). Organic sales growth was 5%. Acquisitions contributed 4%, while divestitures reduced sales growth by 1%. In Q3/2014, sales increased by 12% to US$4,113 (Q3/2013: US$3,666).
 
Sales in dialysis services increased by 8% (10% in constant currency) to US$8,928 million (Q1-3/2013: US$8,235 million). Dialysis product sales grew by 3% (3% in constant currency) to US$2,583 million (Q1-3/2013: US$2,508 million).
 
In North America, sales grew by 7% to US$7,624 million (Q1-3/2013: US$7,099 million). Dialysis services sales increased by 8% to US$7,015 million (Q1-3/2013: US$6,485 million). Dialysis product sales decreased by 1% to US$609 million (Q1-3/2013: US$614 million).
 
Sales outside North America ("International" segment) increased by 6% (9% in constant currency) to US$3,843 million (Q1-3/2013: US$3,619 million). Sales in dialysis services increased by 9% to US$1,913 million (Q1-3/2013: US$1,750 million). Dialysis product sales increased by 3% to US$1,930 million (Q1-3/2013: US$1,869 million).
 
EBIT was US$1,591 million (Q1-3/2013: US$1,595 million). The EBIT margin was 13.8% (Q1-3/2013: 14.8%). EBIT was impacted by sequestration and rebasing of Medicare's reimbursement rate in the United States. In Q3/2014, EBIT increased by 6% to US$590 million (Q3/2013: US$557 million). EBIT margin was 14.3% (Q3/2013: 15.2%).
 
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was US$710 million (Q1-3/2013: US$761 million). In Q3/2014, net income was US$271 million (Q3/2013: US$273 million).
 
Operating cash flow was US$1,274 million (Q1-3/2013: US$1,446 million). The decrease was mainly attributable to the payment for the W.R. Grace bankruptcy settlement of US$115 million and increased working capital in Q1/2014. The cash flow margin was 11.1% (Q1-3/2013: 13.5%). In Q3/2014, operating cash flow increased to US$712 million (Q3/2013: US$605 million), the cash flow margin was 17.3% (Q3/2013: 16.5%).
 
Fresenius Medical Care confirms its outlook for 2014. Fresenius Medical Care expects sales of approximately US$15.2 billion, translating into a growth rate of around 4%. This outlook excludes sales of approximately US$500 million from acquisitions completed during the first nine months of 2014. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between US$1.0 to US$1.05 billion. The company has initiated a global efficiency program designed to enhance its performance over a multi-year period. Potential cost savings before income taxes of up to US$60 million generated from this program are not included in the outlook for 2014.
 
For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.
 
¹Net income attributable to shareholders of 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.

• 5% organic sales growth in Q3
• Sequential EBIT margin increase by 40 bps to 17.2% in Q3
• 2014 guidance: 4 % to 6 % organic sales growth confirmed, EBIT-margin of approximately 17% expected

 
Sales were €3,760 million (Q1-3/2013: €3,742 million). In constant currency, sales increased by 4%. Organic sales growth was 3%. Acquisitions contributed 1% sales growth. Adverse currency translation effects (-4%) were mainly driven by the weaker currencies in the United States and Argentina against the Euro. In Q3/2014, sales increased by 6% (7% in constant currency) to €1,294 million (Q3/2013: €1,223 million). Organic sales growth was 5%.
 
Sales in Europe grew by 1% (organic sales growth: 2%) to €1,538 million (Q1-3/2013: €1,524 million). Sales in North America decreased by 3% (organic sales growth: 0%) to €1,118 million (Q1-3/2013: €1,158 million). Asia-Pacific sales increased by 5% (organic sales growth: 7%) to €723 million (Q1-3/2013: €689 million). Sales in Latin America/Africa increased by 3% (organic sales growth: 13%) to €381 million (Q1-3/2013: €371 million).
 
EBIT¹ was €634 million (Q1-3/2013: €695 million), a decrease of 6% in constant currency. Besides currency headwinds, EBIT was impacted by lower HES sales and the easing of drug shortages in North America. The EBIT margin of 16.9% was in line with expectations and our guidance range. In Q3/2014, EBIT¹ was €223 million (Q3/2013: €226 million), an increase of 1% in constant currency. Sequentially, the EBIT margin improved by 40 bps to 17.2% in Q3/2014.
 
Net income² was €337 million (Q1-3/2013: €367 million). In Q3/2014, net income² was €120 million (Q3/2013: €125 million).
 
Operating cash flow was €432 million (Q1-3/2013: €303 million) with a margin of 11.5% (Q1-3/2013: 8.1%). In Q3/2014, operating cash flow was €217 million (Q3/2013: €65 million) with a margin of 16.8% (Q3/2013: 5,3%).
 
Integration costs for Fenwal were €6 million (pre-tax) in Q1-3 2014. These costs are reported in the Group Corporate/Other segment.
Fresenius Kabi confirms its 2014 organic sales growth outlook of 4% to 6%. The EBIT margin is now confirmed at approximately 17%, so within the previously guided range of 16.5% to 18%.
 
Fresenius Kabi guidance excludes €40-50 million pre-tax Fenwal integration costs (€30-40 million after tax); see Group guidance
 
¹before integration costs
²Net income attributable to shareholders of Fresenius Kabi AG; before integration costs
 
Fresenius Helios
Fresenius Helios is Germany's largest hospital operator. HELIOS owns 110 hospitals, thereof 86 acute care clinics including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal and 24 post-acute care clinics. HELIOS treats more than 4.2 million patients p.a., thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

• 6% organic sales growth in Q3
• Sequential EBIT margin increase of 30 bps to 10.8% in Q3
• 2014 guidance fully confirmed

 
Sales increased by 53% to €3,883 million (Q1-3/2013: €2,537 million). The strong increase is mainly due to the acquired hospitals from Rhön-Klinikum AG. The divestment of two HELIOS hospitals reduced sales growth by 2%. Organic sales growth was 4%. In Q3/2014, sales increased by 62% to €1,362 million (Q3/2013: €842 million), organic sales growth was 6%.

EBIT² grew by 41% to €397 million (Q1-3/2013: €282 million). The EBIT margin was 10.2% (Q1-3/2013: 11.1%). The margin decline is due to the consolidation of the newly acquired hospitals. In Q3/2014, EBIT¹ was €147 million (Q3/2014: €103 million). Sequentially, the EBIT margin increased by 30 bps from 10.5% in Q2/2014 to 10.8% in Q3/2014.
 
Net income^3,5 increased by 47% to €286 million (Q1-3/2013: €194 million). In Q3/2014, net income^3,4 increased by 43% to €107 million (Q3/2013: €75 million).
 
Sales of the established hospitals grew by 4% to €2,583 million. EBIT improved by 4% to €287 million. The EBIT margin was 11.1% (Q1-3/2013: 11.1%).
 
Sales of the acquired hospitals were €1,300 million, EBIT was €110 million and EBIT margin was 8.5%. Q3/2014 EBIT margin decreased by 20 bps sequentially to 8.9% due to the first time consolidation of the acquired hospital in Wiesbaden (HSK) as of June 30, 2014.
 
The integration of the acquired hospitals is progressing as planned. Integration costs are now expected to be between €60-80 million (before: approximately €80 million) in total for 2014 and 2015. Fresenius Helios confirms expected cost synergies of approximately €85 million p.a. by 2015.
 
Fresenius Helios fully confirms its 2014 outlook, and projects organic sales growth of 3% to 5%. The acquired hospitals are also expected to show 3% to 5% organic growth and to contribute sales of approximately €1.8 billion. EBIT for HELIOS including the acquired hospitals is expected to increase to €540-560 million.
 
Fresenius Helios guidance before integration costs for the hospitals acquired from Rhön-Klinikum AG and disposal gains of two HELIOS hospitals and Rhön stake. The integration costs will be reported in the Group Corporate/Other segment, see Group guidance.
 
¹2014 before integration costs
²2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
³Net income attributable to shareholders of HELIOS Kliniken GmbH
⁴2014 before integration costs
⁵2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
 
Fresenius Vamed

Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide.

• 7% organic sales growth in Q3
• Record quarterly order intake of €378 million in Q3
• 2014 guidance: flat organic sales growth expected, 5% - 10% EBIT growth expectation confirmed

 
Sales were €655 million (Q1-3/2013: €654 million). Organic sales growth was -2%, acquisitions contributed 2%. Sales in the project business decreased by 8% to €306 million (Q1-3/2013: €332 million), mainly due to project delays in Russia and Ukraine. Sales in the service business grew by 8% to €349 million (Q1-3/2013: €322 million). Sales in Q3/2014 were €257 million (Q3/2013: €233 million). Organic sales growth was 7%.
 
EBIT grew by 8% to €27 million (Q1-3/2013: €25 million) with a margin of 4.1% (Q1-3/2013: 3.8%). In Q3/2014, EBIT increased by 20% to €12 million (Q3/2013: €10 million) with a margin of 4.7% (Q3/2013: 4.3%).
 
Net income¹ increased by 13% to €18 million (Q1-3/2013: €16 million). In Q3/2014, net income¹ increased by 14% to €8 million (Q3/2013: €7 million).
 
Order intake increased by 78% to €678 million (Q1-3/2013: €380 million). Q3/2014 order intake was at a record level of €378 million, mainly driven by the modernization contract with the University Hospital Schleswig-Holstein in Germany. As of September 30, 2014, order backlog increased to €1,504 million (Dec. 31, 2013: €1,139 million).
 
Due to project delays in Russia and Ukraine Fresenius Vamed now expects flat organic sales growth (before: 5% to 10%). The EBIT growth guidance of 5% to 10% for 2014 remains unchanged.
 
¹Net income attributable to shareholders of Vamed AG
 
Analyst-/Investor Conference Call
As part of the publication of the results for the first three quarters of 2014, a conference call will be held on November 4, 2014 at 2 p.m. CET (8 a.m. EST). All journalists are cordially invited to follow the conference call in a live broadcast via the Internet at www.fresenius.com, see Press – Audio/Video Service. Following the call, a replay of the conference call 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 Kabi and its partners Sistema JSFC and Zenitco Finance Management LLC have mutually agreed to terminate the joint venture agreement announced in April 2014. The intention was to combine Fresenius Kabi's Russian and CIS business with the partners' subsidiary CJSC Binnopharm. Changing political and regulatory circumstances in the region have made the closing of the joint venture more challenging than anticipated.

Fresenius Kabi entered the Russian market in 1994 and today provides infusion therapies, clinical nutrition and I.V. drugs. The company is committed to further grow its business in the region, and is exploring other potential options to cooperate with Binnopharm.

Contact

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T +49 (0) 6172 608-96008
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Acquisition will widen the presence in the Hospitalist industry

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS) announced today that Sound Physicians Inc. (Sound) has entered into an agreement to acquire Cogent Healthcare (Cogent) with more than 650 providers, who offer hospitalist and intensivist services to more than 80 hospitals throughout the United States. Combined, the expanded Sound Physicians organization will now serve over 180 hospitals in 35 states with more than 2,250 providers including physicians and advanced care practitioners. Fresenius Medical Care is the majority shareholder in Sound.

The company expects Cogent to generate approximately $250 million in revenue in 2015 and expects the investment to be accretive to earnings within 18-24 months after closing including the transaction/integration cost and potential synergies. The investment will be financed through available cash. The parties involved agreed not to disclose the financial terms of the acquisition.

"Sound Physicians is a critical partner in fulfilling our mission to improve the lives of every patient every day," said Rice Powell, Fresenius Medical Care Chief Executive Officer. "With this acquisition, Sound Physicians continues to augment our network of dialysis, cardiac and vascular care centers, renal pharmacy and full service and specialty laboratories to help us better address the full spectrum of our patients' health care needs. Going forward, Sound will be better positioned than ever to deliver the highest quality care to patients in the acute setting and reduce costs for its hospital partners."

"Combining Cogent Healthcare's reach with Sound Physicians' patient-centered approach, web-based workflow platform and experienced physician leadership together clearly positions Sound Physicians as the partner of choice for the acute episode of care and the practice of choice for providers," noted Rob Bessler, MD, Chief Executive Officer of Sound Physicians. "By coming together, we believe we can continue to advance innovation and improvement in the acute episode of care throughout the U.S."

The parties expect the transaction, which remains subject to regulatory clearance, to close this quarter.

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pr-fre@fresenius.com

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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, has upsized its syndicated credit facility by 850 million U.S. dollar equivalent to a total amount of approximately 4.4 billion U.S. dollar equivalent, with pricing and other conditions more favorable to the company. The amended credit facility consists of revolving facilities and term loans, both U.S. dollar and euro denominated. The final maturity date was extended by two years to October 30, 2019. The facilities will be used to refinance existing debt, for working capital needs and general corporate purposes.

Fresenius Medical Care also successfully extended its $800 million accounts receivable facility with improved terms. The new facility will now mature November 24, 2017.

Fresenius Kabi has been informed by the U.S. Food and Drug Administration that its pharmaceutical manufacturing facility in Grand Island, N.Y., has achieved the upgraded status of voluntary action indicated (VAI) following an October 2014 inspection. The status change is an improvement from the "official action indicated" status the facility had been operating under.

The new VAI classification permits FDA approval of new Fresenius Kabi products at the plant.

The status change reflects the improvements that have been made at the plant since receiving a warning letter in 2012. Fresenius Kabi remains committed to continuous improvement and compliance in its operations worldwide.

Fresenius has launched a refinancing of the revolving facilities and the term loan A tranches (aggregate volume approx. €3 bn) under its 2013 senior credit agreement. The maturity will be extended by 2 years to June 28, 2020. Given the improved credit profile and favorable bank market conditions, Fresenius' proposal also includes reduced credit margins.

S&P has upgraded the corporate credit rating of Fresenius from BB+ to BBB- with a stable outlook. The upgrade reflects Fresenius' enhanced stability – derived from overall critical mass coupled with sound diversification and leading positions in non-cyclical markets – rather than a shift in its financial policy.

Moody's Investors Service has raised the outlook on the Ba1 rating for Fresenius to stable.

Fresenius continues to view itself as an active consolidator in its markets and will continue to focus on financing acquisitions primarily with debt. Minimizing the weighted average cost of capital continues to be a key aim of Fresenius' financial policy. This requires the conscious and prudent use of debt in the Group's capital structure.

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 that Standard & Poor's has upgraded the corporate credit rating of Fresenius Medical Care from BB+ to BBB- with a stable outlook. The company's financial policy remains unchanged. Fresenius Medical Care will continue to focus on the execution of the long-term strategy introduced in early 2014.

Birgit Grund, Senior Vice President of Investor Relations at Fresenius for the past 24 years, plans to leave the Company on March 31, 2015, to pursue a new opportunity. Ulf Mark Schneider, CEO of Fresenius, commented: "Her significant contributions and outstanding commitment were instrumental in building the trust and credibility Fresenius enjoys within the financial community. We wish her all the best in her future endeavors."

Markus Georgi will succeed Birgit Grund as Senior Vice President of Investor Relations, effective April 1, 2015. He has worked in Investor Relations for more than 15 years and will join Fresenius from Celesio AG, where he is currently Director Investor Relations. Prior to joining Celesio in 2011, Georgi was Head of Investor Relations at CompuGroup Medical AG and before that Vice President Investor Relations & Head of Equity Capital Markets at Deutsche Telekom AG. Ulf Mark Schneider, CEO of Fresenius, said: "We are pleased to have Markus Georgi assume this important position at Fresenius. His extensive experience in Investor Relations makes him well qualified for this role. We wish him every success with his new duties."

Note to the media: Images of Birgit Grund and Markus Georgi can be requested at pr-fre@fresenius.com.

Fresenius Kabi has sold its German subsidiary CFL GmbH to NewCo Pharma GmbH, a compounding company founded by pharmacist Michael Schill. Both companies specialize in IV oncology drug compounding.

Fresenius Kabi will remain active in compounding. In Germany the focus will be on parenteral nutrition products, an area that offers attractive growth opportunities.

In 2014, CFL had sales of €77 million. Financial terms of the transaction were not disclosed.

• Further expansion of our operations and new record level of revenue
• Increased dividend to be proposed at the Annual General Meeting
• Accelerated earnings growth expected

Fourth quarter 2014 key figures:

Net revenue: $4,320 million, +12%
Operating income (EBIT): $663 million, 0%
Net income*: $335 million, -4%
Basic earnings per share: $1.11, -5%

Full year 2014 key figures:

Net revenue: $15,832 million, +8%
Operating income (EBIT): $2,255 million, 0%
Net income*:  $1,045 million, -6%
Basic earnings per share: $3.46, -5%

Dividend proposal:

Ordinary share: €0.78, +1%

*attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Rice Powell, chief executive officer of Fresenius Medical Care, stated: "During fiscal year 2014, we continuously improved our results and delivered on revenue and net income guidance. We have strengthened our core business and also expanded our portfolio with acquisitions in the field of care coordination. After revenue of approximately 500 million US$ in 2013 we now expect our Care Coordination business to generate around 1.7 billion of revenue in 2015. We expect accelerated earnings growth for 2015 and beyond supported mainly by a strong organic business, our acquisitions and the global efficiency program".

Fourth Quarter 2014

Revenue

Net revenue for the fourth quarter of 2014 increased by 12% to $4,320 million (+15% at constant currency) as compared to the fourth quarter of 2013. Organic revenue growth worldwide was 7%. Health Care revenue grew by 15% to $3,322 million (+18% at constant currency) and dialysis product revenue increased by 3% to $998 million (+8% at constant currency) as compared to the fourth quarter of 2013.

North America revenue for the fourth quarter of 2014 increased by 15% to $2,876 million. Organic revenue growth was 6%. Health Care revenue grew by 15% to $2,640 million with a same market treatment growth of 4%. Net Dialysis Care revenue increased by 5% to $2,245 million. Care Coordination revenue increased by 151% to $395 million. Dialysis product revenue increased by 8% to 236 million compared to the fourth quarter of 2013.

International revenue increased by 5% to $1,422 million (+15% at constant currency). Organic revenue growth was 7%. Health Care revenue increased by 12% to $682 million (+26% at constant currency). Dialysis product revenue decreased by 1% to $740 million (+6% at constant currency).

Earnings

Operating income (EBIT) increased from $661 million in the fourth quarter of 2013 to $663 million in the fourth quarter of 2014. Operating income for North America for the fourth quarter of 2014 was $493 million, an increase of 9% as compared to the fourth quarter of 2013. In the International segment, operating income for the fourth quarter of 2014 increased by 2% to $278 million as compared to $274 million in the fourth quarter of 2013.

Net interest expense for the fourth quarter of 2014 was $117 million, compared to $98 million in the fourth quarter of 2013.

Income tax expense was $143 million for the fourth quarter of 2014, which translates into an effective tax rate of 26.2%. This compares to income tax expense of $171 million and a tax rate of 30.4% for the fourth quarter of 2013. The tax rate was affected favorably by the resolution of challenged deductions for civil settlement payments taken in prior years.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2014 was $335 million, a decrease of 4% compared to $349 million for the fourth quarter of 2013.

Basic earnings per share (EPS) for the fourth quarter of 2014 was $1.11, a decrease of 5% compared to the corresponding number for the fourth quarter of 2013. The weighted average number of shares outstanding for the fourth quarter of 2014 was approximately 303.3 million shares, compared to approximately 301.0 million shares for the fourth quarter of 2013. The increase in shares outstanding resulted from stock option exercises during 2014.

Cash flow

In the fourth quarter of 2014, the company generated $588 million in net cash provided by operating activities, representing 14% of revenue, almost unchanged compared to the corresponding figure of last year ($ 589 million).

A total of $282 million was spent for capital expenditures, net of disposals. Free cash flow was $306 million compared to $355 million in the fourth quarter of 2013.

A total of $725 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $419 million as compared to $157 million in the fourth quarter of 2013.

Full year 2014

Revenue and Earnings

Net revenue for the full year 2014 increased by 8% to $15,832 million (+10% at constant currency) as compared to the full year 2013. Organic revenue growth worldwide was 5%.

Operating income (EBIT) for the full year 2014 was $2,255 million as compared to $2,256 million in the full year 2013.

Net interest expense for the full year 2014 was $411 million as compared to $409 million in the full year 2013.

Income tax expense for the full year 2014 was $584 million, which translates into an effective tax rate of 31.7%. This compares to income tax expense of $592 million and a tax rate of 32.0% for the full year 2013. In 2014, the tax rate was influenced by different tax effects partially offsetting each other. In the second quarter the tax rate increased by a reversal of an original tax benefit following a financial court ruling issued against another company, while in the fourth quarter the tax rate was favourably influenced by the resolution of challenged deductions for civil settlement payments taken in prior years.

For the full year 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,045 million, down by 6% from the corresponding number of $1,110 million for the full year 2013.

In the full year 2014, basic earnings per share (EPS) was $3.46, a decrease of 5% compared to the corresponding number for the full year 2013. The weighted average number of shares outstanding during the full year 2014 was approximately 302.3 million shares.

Cash flow

In the full year 2014, the company generated $1,861 million in net cash provided by operating activities, representing 12% of revenue, as compared to $2,035 million for the same period in 2013.

A total of $920 million was spent for capital expenditures, net of disposals. Free cash flow for the full year 2014 was $941 million as compared to $1,307 million in the full year 2013.

A total of $1,770 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $829 million as compared to a positive $829 million in the full year 2013.

Employees

As of December 31, 2014, Fresenius Medical Care had 99,895 employees (full-time equivalents) worldwide, compared to 90,690 employees at the end of December 2013. This increase of more than 9,200 employees was mainly attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were $25,447 million (Dec. 31, 2013: $23,120 million), an increase of 10%. Current assets increased by 7% to $6,725 million (Dec. 31, 2013: $6,287 million). Non-current assets were $18,722 million (Dec. 31, 2013: $16,833 million), an increase of 11%. Total equity increased by 6% to $10,028 million (Dec. 31, 2013: $9,485 million). The equity ratio was 39% as compared to 41% at the end of 2013. Total debt was $9,532 million (Dec. 31, 2013: $8,417 million). As of December 31, 2014, the debt/EBITDA ratio was 3.1 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for the fourth quarter and full year 2014.

Dividend

At the Annual General Meeting to be held on May 19, 2015, shareholders will be asked to approve a dividend of €0.78 per share, an increase of 1% from 2013 (€0.77). For the 18th consecutive year, shareholders can expect to receive an increased annual dividend.

Outlook

The information provided is based on exchange rates prevailing at the beginning of 2015. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination segment for future growth in line with our 2020 strategy.

For 2015 the company expects revenue to grow at 5-7% which at constant currency is a growth rate of 10-12%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase 0–5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

For the year 2016 we expect an acceleration of growth with a revenue increase of 9–12% and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA growing by 15–20%.

As disclosed in the company's long-term target for 2020 the company expects revenue to grow at an annual average growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

Press Conference

Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year 2014 on Wednesday, February 25, 2015, at 10 am CET. The company cordially invites journalists to view the live video webcast at the company's website www.freseniusmedicalcare.com in the section "News and Press / Video service". A replay will be available shortly after the meeting.