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)

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.

Contact

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

Documents

Text as PDF document (PDF, 33 KB)

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.

Contact

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

Documents

Text as PDF document (PDF, 186 KB)

• 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

Documents

Text as PDF document (PDF, 50 KB)

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.

Contact

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

Documents

Text as PDF document (PDF, 38 KB)

Fresenius provides an incentive to inventors for what often is a long path from their initial flash of genius to ultimately achieving a marketable product. In this endeavor, the health care group aims to promote innovative developments within all medical sectors. For the event's 11th running, bright minds will be able to present their ingenuity during the Fresenius Inventors' Fair. The biennial event will be staged in conjunction with MEDICA 2010, the world's largest medical trade fair, held in Düsseldorf Nov. 17–20. The adjunct fair offers participating researchers, developers and inventors an international forum to attract the attention of potential business partners and investors for the marketing and advancement of their initial innovations up to market-ready products. The top three entries are chosen on the opening day of the MEDICA event by an independent jury comprised of medical specialists and business professionals. The Fresenius Inventors' Award carries cash prizes totaling €10,000. Above all, recognition is based on the criteria of potential usefulness, innovativeness and feasibility of being implemented. Registration of entries for the competition is now open.

An engineer hailing from Karlsruhe, Dr. Nicole Kikillus was the winner of the 2008 Fresenius Inventors' Award. She developed a particularly reliable method of detecting atrial fibrillation in patients, even if no such fibrillation occurs during a medical checkup. This condition is the leading clinical type of cardiac arrhythmia and increases the risk of stroke. Kikillus' software analyzes a 30- to 60-minute single-channel electrocardiogram, yielding an early diagnosis of atrial fibrillation patients and enabling therapy to reduce the chances of stroke.

As of immediately, physicians, researchers, engineers and other practitioners from the hospital field and medical care profession can submit their entries for consideration. Fresenius will provide winning entries display space and an exhibit booth at the fair free of charge. Selected from among numerous professionals from all medical fields who entered the previous competition, 20 such exhibitors presented their innovations at the 2008 Fresenius Inventors' Fair.

The deadline for competition entries is Oct. 1, 2010. Further details about the Fresenius Inventors' Fair can be found at www.fresenius.com/inventorsfair; and about the MEDICA event at www.medica-tradefair.com. Contact: Fresenius SE; Keyword: "Inventors' Fair", 61346 Bad Homburg, Telefax: +49 61 72 - 6 08 22 94, E-mail: daniela.hegemann@fresenius.com.

Contact

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

Documents

Text as PDF document (PDF, 37 KB)

Based on preliminary results, Fresenius Group earnings for the first half of 2010 were substantially ahead of expectations. Group net income¹ increased by 23% in constant currency to €302 million (H1 2009: €240 million).

The earnings development was mainly driven by Fresenius Kabi, especially in North America, where new product launches and strong demand due to drug shortages contributed to growth.

Fresenius Kabi also expects to achieve attractive growth in the second half of 2010, albeit more in line with the initial 2010 guidance. In addition, Fresenius Kabi plans to invest in further efficiency improvements in Europe, resulting in expected one-time expenses of approximately €10 million to €20 million pre-tax in the second half of 2010.

Based on the Group's financial results in the first half and including the planned one-time expenses, Fresenius now expects net income1 to increase by 10% to 15% in constant currency in 2010. Previously, the Company expected net income to increase by 8% to 10% in constant currency.

The detailed financial results for the first half of 2010 will be announced on August 3, 2010, as originally scheduled.


¹Net 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.

Contact

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

Documents

Text as PDF document (PDF, 166 KB)

• Sales: €7.7 billion, +11% at actual rates, +10% in constant currency
• EBIT: €1.1 billion, +14% at actual rates, +12% in constant currency
• Net income: €302 million, +26% at actual rates, +23% in constant currency

• Continued strong growth in all business segments
• Fresenius Kabi significantly exceeds expectations, primarily in North America
• All business segments raise or fully confirm 2010 guidance
• 2010 Group earnings outlook* raised

Group net income* of €302 million, announced on July 27, 2010, on a preliminary basis, remained unchanged.

Ulf Mark Schneider, CEO of Fresenius SE: "Our continued focus on revenue growth and the Group's operating margin proved to be successful. All business segments achieved excellent financial results. Fresenius Kabi significantly exceeded our expectations, primarily due to the successful sales and earnings development of APP Pharmaceuticals in North America. We are very confident about our prospects for the second half of 2010 and raise our earnings outlook for the Group."

Earnings outlook for 2010 raised
Based on the Group's excellent financial results in the first half, Fresenius now expects net income* to increase by 10% to 15% in constant currency in 2010. Previously, the Company expected net income to increase by 8% to 10% in constant currency. Fresenius fully confirms its sales guidance of 7% to 9% in constant currency.

The improved earnings outlook already includes expected one-time expenses of €10 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements in Europe in the second half of 2010.

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

The net debt/EBITDA ratio is expected to 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.

Strong organic sales growth of 9%
Group sales increased by 11% at actual rates and by 10% in constant currency to €7,686 million (H1 2009: €6,895 million). Organic sales growth was 9%. Acquisitions contributed a further 1%. Currency translation had a positive effect of 1%.

Sales growth in the business segments was as follows:

In Europe, sales grew by 9% in constant currency with organic sales growth contributing 8%. In North America, sales grew by 11% in constant currency. Organic sales growth was 10%. Organic growth rates in the emerging markets reached 4% in Asia-Pacific and 12% in Latin America. Organic sales growth in Asia-Pacific was impacted by the volatility of Fresenius Vamed's project business.

*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.

Excellent earnings growth
Group EBITDA increased by 13% at actual rates and by 11% in constant currency to €1,425 million (H1 2009: €1,260 million). Group EBIT improved by 14% at actual rates and by 12% in constant currency to €1,118 million (H1 2009: €985 million). The EBIT margin increased to 14.5% (H1 2009: 14.3%). The excellent growth was mainly driven by Fresenius Kabi, especially in North America. In the first quarter of 2010, EBIT was impacted by the devaluation of the Venezuelan bolivar and related charges at Fresenius Medical Care.

Group net interest improved to -€281 million (H1 2009: -€294 million).

The other financial result was -€96 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€117 million and the Contingent Value Rights (CVR) of €21 million. Both are non-cash items.

The Group tax rate* was 32.0% (H1 20091: 30.5%). The tax rate in the first half of 2009 was influenced by a revaluation of a tax claim at Fresenius Medical Care.

Noncontrolling interest increased to €267 million (H1 2009: €240 million), of which 94% was attributable to the minority interest in Fresenius Medical Care.

Group net income** increased by 26% at actual rates and by 23% in constant currency to €302 million (H1 20092: €240 million). Earnings per ordinary share increased to €1.86 and earnings per preference share to €1.87 (H1 2009: ordinary share €1.49; preference share €1.50). This represents an increase of 26% for both share classes.

Net income*** (including special items) was €240 million, or €1.48 per ordinary share and €1.49 per preference 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; 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 €320 million on property, plant and equipment (H1 2009: €283 million). Acquisition spending was €151 million (H1 2009: €156 million).

Strong cash flow
Operating cash flow increased by 34% to €805 million (H1 2009: €600 million), mainly driven by strong earnings growth and tight working capital management. The cash flow margin improved to 10.5% (H1 2009: 8.7%). Net capital expenditure was €320 million (H1 2009: €292 million). Free cash flow before acquisitions and dividends improved by 57% to €485 million (H1 2009: €308 million). Free cash flow after acquisitions and dividends* was €58 million (H1 2009: -€76 million).

*Does not include a €100 m cash out for a short-term bank deposit by Fresenius Medical Care in Q2 2010.

Solid balance sheet structure
The Fresenius Group's total assets grew by 14% to €23,907 million (Dec. 31, 2009: €20,882 million). In constant currency, the increase was 4%. Current assets increased by 21% at actual rates and by 11% in constant currency to €6,474 million (Dec. 31, 2009: €5,363 million). Non-current assets grew by 12% at actual rates and by 1% in constant currency to €17,433 million (Dec. 31, 2009: €15,519 million). The change at actual rates is mainly attributable to the 15% strengthening of the U.S. dollar against the euro since year-end 2009.

Total shareholders' equity increased by 13% at actual rates to €8,635 million (Dec. 31, 2009: €7,652 million). In constant currency, total shareholders' equity remained close to previous year's level. The equity ratio was 36.1% (Dec. 31, 2009: 36.6%).

Group debt grew by 13% at actual rates to €9,387 million (Dec. 31, 2009: €8,299 million). In constant currency, Group debt increased by 2%.

For the net debt/EBITDA leverage calculation, net debt is translated at the currency spot rates as of June 30, whereas EBITDA is translated at the average exchange rates of the last twelve months. Due to the strengthening of the U.S. dollar against the euro, the net debt/EBITDA ratio increased to 3.16 as of June 30, 2010 (Dec. 31, 2009: 3.01). At identical exchange rates for net debt and EBITDA, the ratio further improved to 2.92.

Number of employees increased
As of June 30, 2010, Fresenius employed 133,197 people (Dec. 31, 2009: 130,510). This is an increase of 2%.

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 reported sales of approximately €1.4 million with the trifunctional antibody Removab (catumaxomab) in the first half of 2010. Preparations for market launches in other European countries are ongoing.

Fresenius Biotech's EBIT was -€15 million (H1 2009: -€22 million). For 2010, Fresenius Biotech confirms its guidance of an EBIT between -€35 million 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 June 30, 2010, Fresenius Medical Care was treating 202,414 patients in 2,599 dialysis clinics.

•  High organic sales growth of 7%
• 2010 outlook fully confirmed

Fresenius Medical Care achieved sales growth of 9% to US$5,828 million (H1 2009: US$5,323 million). Organic growth was 7%, acquisitions contributed 1% and currency translation contributed a further 1%.

Sales in dialysis care increased by 11% at actual rates and by 10% in constant currency to US$4,395 million (H1 2009: US$3,977 million). Dialysis product sales grew by 6% at actual rates and 4% in constant currency to US$1,433 million (H1 2009: US$1,346 million).

In North America, sales increased by 9% to US$3,986 million (H1 2009: US$3,650 million). Dialysis services revenue increased by 10% to US$3,578 million. Average revenue per treatment for U.S. clinics increased to US$356 in the second quarter of 2010 compared to US$344 for the same quarter in 2009 and US$355 in the first quarter of 2010. This development was principally attributable to reimbursement increases and increased utilization of pharmaceuticals. Sales in dialysis products improved by 3% to US$408 million in the first half of 2010.

Sales outside North America ("International" segment) grew by 10% at actual rates and by 6% in constant currency to US$1,842 million (H1 2009: US$1,673 million). Sales in dialysis care increased by 13% (9% in constant currency) to US$817 million. Dialysis product sales improved by 8% (4% in constant currency) to US$1,025 million.

EBIT increased by 9% to US$888 million (H1 2009: US$813 million) resulting in an EBIT margin of 15.2% (H1 2009: 15.3%).

In North America, EBIT margin increased to 16.0% (H1 2009: 15.6%). Margin development was favorably influenced by an increase in revenue per treatment as well as the effect of economies of scale from revenue growth.

In the International segment, EBIT margin was 17.6% (H1 2009: 18.0%). EBIT margin was positively influenced by the effect of economies of scale from revenue growth, favorable foreign exchange rate effects and lower bad debt expenses. It was impacted by the devaluation of the Venezuelan bolivar and related charges as well as higher depreciation expenses as a result of the expansion of production capacities.

Net income* increased by 10% to US$459 million (H1 2009: US$419 million).

In the second quarter of 2010, Fresenius Medical Care announced that it has signed an agreement to acquire Asia Renal Care Ltd. Asia Renal Care operates more than 100 clinics throughout Asia treating about 6,200 patients. The acquisition of Asia Renal Care will strengthen Fresenius Medical Care's leading market position in the Asia-Pacific region. Furthermore, Fresenius Medical Care acquired an operator of dialysis clinics in Russia's Krasnodar region. KNC currently treats around 1,000 patients in five dialysis clinics. By acquiring KNC, Fresenius Medical Care intends to strengthen its position in the Russian Federation's growing dialysis services market.

For the full year 2010, Fresenius Medical Care confirms its outlook. Revenue is expected to grow to more than US$12 billion. Net income1 is expected to be between US$950 million and US$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 outpatient environments. The company also is a leading provider of medical devices and transfusion technology products.

• Strong organic sales growth of 11% - EBIT margin at 19.9%
• Excellent development especially in North America
• 2010 EBIT margin outlook raised - Sales growth expected at upper end of range

Sales increased by 16% to €1,745 million (H1 2009: €1,500 million). Organic sales growth was 11%. Acquisitions contributed 1%. Currency translation had a positive effect of 4%. This was mainly attributable to the strengthening of the currencies in Brazil, Australia and South Africa against the euro.

In Europe, sales reached €836 million (H1 2009: €772 million), driven by 5% organic growth. In North America, sales increased to €445 million (H1 2009: €347 million). Organic sales growth was 26%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 12% to €279 million (H1 2009: €235 million). Sales in Latin America and Africa increased to €185 million (H1 2009: €146 million), organic sales growth was 7%.

EBIT grew by 20% to €347 million (H1 2009: €290 million). The EBIT margin improved to 19.9% (H1 2009: 19.3%). The EBIT increase is mainly driven by the excellent development in North America where new product launches and strong demand due to drug shortages had a positive effect.

Net interest improved to -€141 million (H1 2009: -€157 million). Net income* increased by 60% to €136 million (H1 2009: €85 million).

Sales at APP Pharmaceuticals (APP) increased by 28% to US$521 million (H1 2009: US$408 million). Adjusted EBITDA** grew by 9% to US$186 million (H1 2009: US$171 million). EBIT increased by 17% to US$151 million (H1 2009: US$129 million). The EBIT margin was 29.0%. In addition to the reported APP earnings, Fresenius Kabi generated EBIT contributions from imported IV drugs distributed by APP in North America.

The number of APP's 2010 product approvals from the FDA (U.S. Food and Drug Administration) has increased to four in the first half of 2010, following only one approval in the first quarter of 2010. In addition, Fresenius Kabi Oncology received three approvals from the FDA in the first half of 2010.

Operating cash flow of Fresenius Kabi increased by 14% to €189 million (H1 2009: €166 million). The cash flow margin was 10.8% (H1 2009: 11.1%). Cash flow before acquisitions and dividends grew by 13% to €124 million (H1 2009: €110 million).

Fresenius Kabi raises its EBIT margin outlook for 2010 and forecasts a margin between 18.5% and 19.0%. The previous guidance was 18% to 19%. The raised guidance already includes expected one-time expenses of €10 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements in Europe in the second half of 2010. Organic sales growth is projected to reach the upper end of the announced range of 7% to 9%.

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. 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 inpatients, and operates a total of more than 18,500 beds.

• Continued high organic sales growth of 6%
• 2010 sales and EBIT expected at upper end of range

Sales increased by 5% to €1,223 million (H1 2009: €1,164 million). Organic growth was again strong and achieved 6%. This was mainly driven by an increase in hospital admissions. The divestiture of one acute care hospital as of January 1, 2010 impacted sales growth by 1%.

EBIT grew by 10% to €110 million (H1 2009: €100 million). The EBIT margin improved to 9.0% (H1 2009: 8.6%). Net income* increased by 17% to €62 million (H1 2009: €53 million).

Fresenius Helios fully confirms its outlook for 2010. The company projects organic sales growth of 3% to 5% and EBIT to be between €220 million and €230 million. For both metrics, the company expects to achieve the upper end of the respective range.

HELIOS conducted a patient survey in 2009 and received feedback from more than 67,000 patients. The results were published in the second quarter of 2010. Overall satisfaction and the willingness to recommend the HELIOS hospitals to others were 95%. The feedback confirms the high quality of both medical staff (95% positive feedback) and nursing staff (94% positive feedback) at the HELIOS clinics.

*Net income attributable to HELIOS Kliniken GmbH.

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

• Order intake more than doubled - Order backlog near all-time high
• 2010 sales and EBIT expected at upper end of range

Sales increased by 37% to €338 million (H1 2009: €247 million). Organic sales growth reached 36%. Sales in the project business rose by 53% to €230 million (H1 2009: €150 million). Sales in the service business increased by 11% to €108 million (H1 2009: €97 million).

EBIT increased to €15 million (H1 2009: €9 million). The EBIT margin improved to 4.4% (H1 2009: 3.6%). Net income* rose to €12 million (H1 2009: €8 million).

The excellent development of order intake and order backlog continued. Order intake in the project business more than doubled to €328 million (H1 2009: €156 million). Fresenius Vamed received a turnkey contract for the construction of the examination and therapy center (U/B West) for the University Hospital in Cologne/Germany with an order volume of €62 million. Following the completion of the project, Fresenius Vamed will be responsible for the service management of the center for a period of 25 years. The order intake also includes the supply of medical-technical equipment to the King Hamad general hospital in Bahrain with an order volume of €52 million. Order backlog increased to €768 million (Dec. 31, 2009: €679 million, +13%).

Fresenius Vamed fully confirms its outlook for 2010 and expects to grow both sales and EBIT at the upper end of the targeted range of 5% to 10%.

*Net income attributable to VAMED AG.

Analyst Meeting and Audio Webcast
As part of the publication of the results for the first half of 2010, a conference call will be held on August 3, 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 atwww.fresenius.com, Investor Relations, Presentations. 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

Documents

Text as PDF document (PDF, 24 KB)

The trifunctional antibody Removab^® (Catumaxomab) from Fresenius Biotech was awarded this year's Galenus von Pergamon Prize in the "Specialist Care" category. The jury acknowledged Removab^®'s new therapeutic mechanism and medical relevance for the treatment of malignant ascites. The prize underlines Removab^®'s unique position among innovative oncology drugs. The Galenus von Pergamon Prize awarded by "Springer Medizin Ärzte Zeitung" honors research and innovative drug development in Germany. An independent jury awards the prize annually in the "Primary Care" category and in the "Specialist Care" category. This year's awards ceremony was held on October 21.

Dr. Christian Schetter, CEO of Fresenius Biotech: "Winning the Galenus von Pergamon Prize is a significant recognition of our work. The trifunctional antibody Removab^® offers not only a new approach to cancer treatment, it also significantly improves our patients' quality of life. We are currently preparing studies to investigate the antibody's effectiveness in the treatment of other indications as well as for intravenous administration."

Removab^®, with its trifunctional mode of action, represents the first of a new generation of antibodies. Removab^® binds to three different cell types simultaneously: One arm of the antibody binds to the EpCAM (epithelial cell adhesion molecule) antigen in carcinoma cells, another arm binds to the CD3 molecule of T cells, and the third binds to the intact Fc region of accessory immune effector cells (such as macrophages, monocytes, dendritic cells and natural killer cells). This simultaneous binding subsequently results in the mutual stimulation and activation of T cells and accessory cells, enabling the generation of a stronger immune response and destruction of cancer cells that are the main cause of ascites.

Removab^® has been available in the European Union for treatment of malignant ascites since April 2009. Catumaxomab (Removab^®) is a trifunctional antibody developed by TRION Pharma GmbH. Fresenius Biotech is responsible for the clinical development, approval and commercialization of Removab^®.

Contact

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

Documents

Text as PDF document (PDF, 164 KB)

• Sales: €11.8 billion, +13% at actual rates, +10% in constant currency
• EBIT: €1.8 billion, +19% at actual rates, +15% in constant currency
• Net income*: €495 million, +35% at actual rates, +30% in constant currency

• Strong sales and earnings growth in all business segments
• Group EBIT margin reaches 15%
• Net debt/EBITDA ratio improved to 2.7
• All business segments raise or fully confirm 2010 guidance
• 2010 Group outlook* raised

*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 business segments continued their strong first-half sales and earnings growth and achieved excellent results in the third quarter. We are particularly pleased with the development of our 2008 acquisition APP Pharmaceuticals and expect the company to be accretive to Group EPS in 2010. The Group's EBIT margin for the first three quarters increased to 15%. We are on track to reach our mid-term 15% stretch EBIT margin target for the full year 2010."

Outlook for 2010 raised
Based on the Group's excellent financial results in the first three quarters, Fresenius now expects net income* to increase by ~20% in constant currency in 2010. Previously, the Company expected net income* to increase by 10% to 15% in constant currency. Sales in constant currency are now projected to increase by 8% to 9%. The previous guidance was 7% to 9% in constant currency.

The earnings outlook already includes expected one-time expenses of €18 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements outside of North America in 2010, of which €8 million are included in the third-quarter results.

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

The net debt/EBITDA ratio is expected to 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.

Strong sales growth
Group sales increased by 13% at actual rates and by 10% in constant currency to €11,821 million (Q1-3/2009: €10,429 million). Organic sales growth was 9%. Acquisitions contributed a further 1%. Currency translation had a positive effect of 3%.

Sales growth in the business segments was as follows.

In Europe, sales grew by 8% in constant currency, with organic sales growth contributing 7%. In North America, sales grew by 11% in constant currency. Organic sales growth was 10%. Organic growth rates in the emerging markets reached 11% in Latin America and 7% in Asia-Pacific. Organic sales growth in Asia-Pacific was impacted by the volatility of Fresenius Vamed's project business.



Excellent earnings growth
Group EBITDA increased by 17% at actual rates and by 13% in constant currency to €2,244 million (Q1-3/2009: €1,911 million). Group EBIT increased by 19% at actual rates and by 15% in constant currency to €1,776 million (Q1-3/2009: €1,496 million). The EBIT margin increased by 70 basis points to 15.0% (Q1-3/2009: 14.3%). All business segments contributed to the excellent earnings growth.

Group net interest improved to -€424 million (Q1-3/2009: -€439 million).

The other financial result was -€98 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€131 million and the Contingent Value Rights (CVR) of €33 million. Both are non-cash items.

The Group tax rate* was 32.2% (Q1-3/2009: 30.8%). The tax rate in the first three quarters of 2009 was influenced by a revaluation of a tax claim at Fresenius Medical Care.

Noncontrolling interest increased to €421 million (Q1-3/2009: €363 million), of which 94% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income** increased by 35% at actual rates and by 30% in constant currency to €495 million (Q1-3/2009: €368 million). Earnings per ordinary share increased to €3.06 and earnings per preference share to €3.07 (Q1-3/2009: ordinary share €2.28; preference share €2.29). This represents an increase of 34% for both share classes.

Net income*** (including special items) grew to €435 million, or €2.69 per ordinary share and €2.70 per preference 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; 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 €494 million on property, plant and equipment (Q1-3/2009: €442 million). Acquisition spending was €223 million (Q1-3/2009: €186 million).

Strong cash flow
Operating cash flow increased by 20% to €1,346 million (Q1-3/2009: €1,120 million), mainly driven by strong earnings growth and tight working capital management. The cash flow margin improved to 11.4% (Q1-3/2009: 10.7%). Net capital expenditure was €491 million (Q1-3/2009: €446 million). Free cash flow before acquisitions and dividends improved by 27% to €855 million (Q1-3/2009: €674 million). Free cash flow after acquisitions and dividends* was €348 million (Q1-3/2009: €251 million).

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

Solid balance sheet structure
The Fresenius Group's total assets grew by 9% to €22,734 million (Dec. 31, 2009: €20,882 million). In constant currency, the increase was 5%. Current assets increased by 19% at actual rates and by 15% in constant currency to €6,392 million (Dec. 31, 2009: €5,363 million). Non-current assets grew by 5% at actual rates and by 1% in constant currency to €16,342 million (Dec. 31, 2009: €15,519 million).

Total shareholders' equity increased by 11% at actual rates to €8,521 million (Dec. 31, 2009: €7,652 million). In constant currency, total shareholders' equity grew by 6%. The equity ratio improved by 90 basis points to 37.5% (Dec. 31, 2009: 36.6%).

Group debt grew by 4% at actual rates to €8,615 million (Dec. 31, 2009: €8,299 million). In constant currency, Group debt remained close to the previous year's level. Net debt increased by 1% to €7,955 million (Dec. 31, 2009: €7,879 million). At constant currency, net debt was reduced by 3%.

Due to the strong earnings growth and cash flow development, the net debt/EBITDA ratio improved to 2.70 as of September 30, 2010 (Dec. 31, 2009: 3.01). For the net debt/EBITDA leverage calculation, net debt is translated at the currency spot rates as of September 30, whereas EBITDA is translated at the average exchange rates of the last twelve months. At identical exchange rates for net debt and EBITDA, the ratio was at 2.71. Within only two years, Fresenius has strongly improved its leverage ratio. In Q3 2008, immediately following the acquisition of APP Pharmaceuticals, the ratio was 3.7.

Number of employees increased
As of September 30, 2010, Fresenius employed 136,458 people (Dec. 31, 2009: 130,510). This is an increase of 5%.

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 reported sales of approximately €2.1 million with the trifunctional antibody Removab (catumaxomab) in the first three quarters of 2010. As of October 8, 2010, the French Ministry of Health has included Removab in the list of drugs authorized for hospital use. The listing ensures reimbursement of this innovative antibody indicated for the treatment of malignant ascites in hospitals.

In October, Removab was awarded with this year's Galenus von Pergamon Prize in the "Specialist Care" category. The prize honors research and innovative drug development in Germany.
In the first three quarters of 2010, Fresenius Biotech's EBIT was -€21 million (Q1-3/2009: -€32 million). For 2010, Fresenius Biotech confirms its guidance of an EBIT between -€35 million 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 September 30, 2010, Fresenius Medical Care was treating 210,191 patients in 2,716 dialysis clinics.

• Continued excellent sales and earnings growth - EBIT margin increased to 15.6%
• 2010 sales outlook fully confirmed - Earnings outlook improved

Fresenius Medical Care achieved sales growth of 8% to US$8,886 million (Q1-3/2009: US$8,212 million). Organic growth was 6% and acquisitions contributed 2%.

Sales in dialysis care increased by 10% at actual rates and by 9% in constant currency to US$6,716 million (Q1-3/2009: US$6,124 million). Dialysis product sales grew by 4% at actual rates and 3% in constant currency to US$2,170 million (Q1-3/2009: US$2,088 million).

In North America, sales increased by 8% to US$6,058 million (Q1-3/2009: US$5,600 million). Dialysis services revenue increased by 9% to US$5,441 million. Average revenue per treatment for U.S. clinics increased to US$359 in Q3 2010 compared to US$348 for the same quarter in 2009 and US$356 in Q2 2010. This development was principally attributable to reimbursement increases. Sales in dialysis products improved by 2% to US$617 million.

Sales outside North America ("International" segment) grew by 8% at actual rates and by 7% in constant currency to US$2,828 million (Q1-3/2009: US$2,612 million). Sales in dialysis care increased by 13% (12% in constant currency) to US$1,275 million. Dialysis product sales improved by 5% (4% in constant currency) to US$1,553 million.

EBIT increased by 10% to US$1,385 million (Q1-3/2009: US$1,265 million) resulting in an EBIT margin of 15.6% (Q1-3/2009: 15.4%).

In North America, EBIT margin increased to 16.7% (Q1-3/2009: 16.0%). Margin development was favorably influenced by an increase in revenue per treatment as well as the effect of economies of scale.

In the International segment, EBIT margin was 17.0% (Q1-3/2009: 17.5%). EBIT margin was impacted by the devaluation of the Venezuelan bolivar and related charges and by lower gross profit margins of acquired clinics in Europe and Asia-Pacific. It was positively influenced by the effect of economies of scale and favorable currency effects.

Net income* increased by 10% to US$707 million (Q1-3/2009: US$645 million).

On August 26, 2010, Fresenius Medical Care announced that it has signed an agreement to acquire Gambro's worldwide peritoneal dialysis business. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the homecare market, especially in Europe and Asia-Pacific. Completion of the acquisition is still subject to regulatory approvals by the relevant antitrust authorities as well as works council consultations in some jurisdictions.

Based on the strong operational performance in the first three quarters of 2010, Fresenius Medical Care improves its outlook for the full year 2010 and now expects net income1 to be between US$960 million and US$980 million. Previously, net income was expected in the range of US$950 million to US$980 million. Revenue is still expected to grow to more than US$12 billion.

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.

• Strong organic sales growth of 13% - EBIT margin increased to 20.5%
• Excellent development in all regions - Continued strong growth in North America in Q3
• 2010 outlook raised

Sales increased by 20% to €2,723 million (Q1-3/2009: €2,274 million). Organic sales growth was strong at 13%. Acquisitions contributed 1%. Currency translation had a positive effect of 6%. This was mainly attributable to the strengthening of the currencies in North America, Brazil and Australia against the euro.

In Europe, sales reached €1,264 million (Q1-3/2009: €1,159 million), driven by 6% organic growth. In North America, sales increased to €730 million (Q1-3/ 2009: €527 million). Organic sales growth was 31%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 12% to €436 million (Q1-3/2009: €361 million). Sales in Latin America and Africa increased to €293 million (Q1-3/2009: €227 million), organic sales growth was 10%.

EBIT grew by 26% to €557 million (Q1-3/2009: €441 million). The EBIT margin improved to 20.5% (Q1-3/2009: 19.4%). The EBIT increase was mainly driven by the excellent development in North America, where new product launches and strong demand due to drug shortages continued to have a positive effect. The EBIT includes €8 million for investments in efficiency improvements outside of North America.

Net interest improved to -€212 million (Q1-3/2009: -€231 million). Net income* increased by 68% to €228 million (Q1-3/2009: €136 million).

APP Pharmaceuticals (APP) achieved excellent sales growth of 35% to US$853 million (Q1-3/2009: US$632 million). Adjusted EBITDA** grew by 30% to US$339 million (Q1-3/2009: US$260 million). EBIT increased by 43% to US$284 million (Q1-3/2009: US$198 million). The EBIT margin improved to 33.3% (Q1-3/2009: 31.3%). In addition to the reported APP earnings, Fresenius Kabi generated EBIT contributions from imported IV drugs distributed by APP in North America.

The number of APP's 2010 product approvals from the FDA (U.S. Food and Drug Administration) has increased to six, following four approvals in the first half of 2010. In addition, Fresenius Kabi Oncology received three approvals from the FDA in 2010.

Due to the strong results of APP Pharmaceuticals, Fresenius expects the acquisition to be accretive to Group earnings per share in 2010.

Operating cash flow of Fresenius Kabi increased by 22% to €378 million (Q1-3/2009: €311 million). The cash flow margin was 13.9% (Q1-3/2009: 13.7%). Cash flow before acquisitions and dividends grew by 21% to €272 million (Q1-3/2009: €224 million).

Based on the excellent development in North America, Fresenius Kabi raises its outlook for 2010 and forecasts organic sales growth of ~12%. Previously, organic sales growth was expected at the upper end of the announced 7% to 9% range. The EBIT margin is now projected to reach ~20%. Previously, an EBIT margin between 18.5% and 19% was projected. The guidance already includes expected one-time expenses of €18 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements outside North America in 2010.

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. 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 inpatients, and operates a total of more than 18,500 beds.

• EBIT margin increases by 70 basis points to 9.3%
• 2010 sales outlook fully confirmed - EBIT outlook increased

Sales increased by 4% to €1,840 million (Q1-3/2009: €1,768 million). Organic growth was 5%. This was mainly driven by an increase in hospital admissions. The divestiture of one acute care hospital as of January 1, 2010 impacted sales growth by 1%.

EBIT grew by 13% to €172 million (Q1-3/2009: €152 million). The EBIT margin improved to 9.3% (Q1-3/2009: 8.6%). Net income* increased by 20% to €98 million (Q1-3/2009: €82 million).

Fresenius Helios fully confirms its sales outlook and raises its EBIT outlook for 2010. The company expects to achieve organic sales growth at the upper end of the targeted 3% to 5% range. EBIT is now projected to reach €230 million to €235 million. Previously, the company expected to reach the upper end of the announced €220 million to €230 million range.

*Net income attributable to HELIOS Kliniken GmbH.

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

• Excellent organic sales growth of 31% - Strong EBIT growth
• 2010 outlook increased

Sales increased by 32% to €517 million (Q1-3/2009: €393 million). Organic sales growth reached 31%. Sales in the project business rose by 44% to €351 million (Q1-3/2009: €244 million). Sales in the service business increased by 11% to €166 million (Q1-3/2009: €149 million).

EBIT increased to €24 million (Q1-3/2009: €15 million). The EBIT margin improved to 4.6% (Q1-3/2009: 3.8%). Net income* rose to €18 million (Q1-3/2009: €13 million).

The excellent development of order intake and order backlog continued. Order intake in the project business increased by 34% to €418 million (Q1-3/2009: €313 million). Fresenius Vamed received a turnkey contract for the construction of the general hospital in Bijeljina, Bosnia Herzegovina, with a total order volume of €36 million. Furthermore, the company will deliver medical technical equipment to China and Turkmenistan with a total order volume of €22 million. Order backlog increased by 8% to €736 million (Dec. 31, 2009: €679 million).

Fresenius Vamed increases its outlook for 2010 and expects to grow both sales and EBIT by more than 10%. Previously, the company expected to grow both sales and EBIT at the upper end of the targeted range of 5% to 10%.

*Net income attributable to VAMED AG.

Analyst Meeting and Audio Webcast
As part of the publication of the results for the first three quarters of 2010, a conference call will be held on November 2, 2010 at 2:00 p.m. CET (9:00 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com, Investor Relations, Presentations. Following the call, a replay of the conference call will be available on our website.