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1st Quarter 2012 Summary:

Reported Figures:

^*) Attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Based on preliminary data, the total revenue for the first quarter 2012 increased by 9% (10% at constant currency) to $3,249 million. Operating income rose by 13% to $503 million. This resulted in an operating margin of 15.5% for the first quarter of 2012 compared to 14.9% for the corresponding quarter in 2011.


Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2012 was $370 million, an increase of 68%, compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $127 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and is subject to the finalization of the Liberty purchase accounting.


Excluding this investment gain, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to $244 million.


For the full year 2012, the company confirms its sales and earnings outlook. The company expects revenue to grow to around $14 billion in 2012. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion. This does not include the investment gain in the amount of approximately $127 million in the first quarter of 2012.


The final figures for the first quarter of 2012 will be provided on May 3, 2012, as originally scheduled.

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1st Quarter 2012 Summary:

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced its results for the first quarter of 2012.

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

Revenue

Net revenue for the first quarter of 2012 increased by 9% to $3,249 million (+10% at constant currency) compared to the first quarter of 2011. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 11% to $2,478 million (+12% at constant currency) and dialysis product revenue increased by 3% to $771 million (+5% at constant currency).

North America revenue for the first quarter of 2012 increased by 9% to $2,105 million. Dialysis services revenue grew by 11% to $1,918 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics increased to $353 in the first quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue decreased by 4% to $187 million mainly as a result of lower pricing of renal pharmaceuticals.

International revenue increased by 8% to $1,136 million (+ 12% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 11% to $560 million (+16% at constant currency). Dialysis product revenue increased by 4% to $576 million and increased by 8% at constant currency, mainly driven by higher sales of dialysis machines.

Earnings

Operating income (EBIT) for the first quarter of 2012 increased by 13% to $503 million compared to $445 million in the first quarter of 2011. This resulted in an operating margin of 15.5% for the first quarter of 2012 compared to 14.9% for the corresponding quarter in 2011.

In North America, the operating margin increased from 16.2% to 16.5%. The increase in Medicare rates and the growth of our expanded services contributed favorably to this development. Average costs per treatment for U.S. clinics decreased to $286 in the first quarter of 2012 compared to $288 for the corresponding quarter in 2011.

In the International segment, the operating margin increased from 16.2% to 17.2%, mainly due to favorable exchange rate effects.

Net interest expense for the first quarter of 2012 was $99 million, compared to $72 million in the first quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2012 was $370 million, an increase of 68% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $127 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and is subject to the finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to $244 million.

Income tax expense was $137 million for the first quarter of 2012 compared to $124 million in the first quarter of 2011. The effective tax rate decreased to 25.8% from 33.3% driven by the non-taxable investment gain. Excluding the investment gain the effective tax rate was 33.9%.

Earnings per ordinary share (EPS) for the first quarter 2012 was $1.22 and $0.80 if excluding the investment gain. This represents an increase compared to the first quarter of 2011 of 67% and 10%, respectively. The weighted average number of shares outstanding for the first quarter of 2012 was approximately 304.2 million shares, compared to 302.3 million shares for the first quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash flow

In the first quarter of 2012, the company generated $481 million in cash from operations, an increase of 174% compared to the corresponding figure last year and representing approximately 14.8% of revenue. The cash flow generation was supported by a favorable development of DSO and inventory levels as well as lower income tax payments.

A total of $122 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $359 million compared to $62 million in the first quarter of 2011. A total of $1,526 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was minus $1,167 million, compared to minus $277 million in the first quarter of 2011.

Please refer to the appendix for a complete overview on the first quarter of 2012.

Patients – Clinics – Treatments

As of March 31, 2012, Fresenius Medical Care treated 253,041 patients worldwide, which represents a 17% increase compared to the previous year's figure. North America provided dialysis treatments for 161,656 patients, an increase of 17%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 163,261. The International segment provided dialysis treatment to 91,385 patients, an increase of 16% over the prior year's figure.

As of March 31, 2012, the company operated a total of 3,119 clinics worldwide, which represents a 13% increase compared to the previous year's figure. The number of clinics is comprised of 2,053 clinics in North America (2,074 including managed clinics), and 1,066 clinics in the International segment, representing an increase of 13% and 13%, respectively.

During the first quarter of 2012, Fresenius Medical Care delivered approximately 9.21 million dialysis treatments worldwide. This represents an increase of 13%, compared to last year's figure. North America accounted for 5.75 million treatments, an increase of 10%. The International segment delivered 3.47 million treatments, an increase of 18%.

Employees

As of March 31, 2012, Fresenius Medical Care had 82,979 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 3,800 employees is due to overall growth in the company's business and acquisitions including Liberty Dialysis Holdings, Inc.

Debt/EBITDA ratio

The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the first quarter of 2011 to 2.96 at the end of the first quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.

Rating

In February Standard & Poor's Ratings Services upgraded the company's corporate credit to ‘BB+' from ‘BB'. The agency also raised the ratings of Fresenius Medical Care's various unsecured senior notes to ‘BB+' from ‘BB'. The rating of ‘BBB-‘ on Fresenius Medical Care's senior secured credit facilities was affirmed. A stable outlook has been assigned to all ratings. Moody's rates the company's corporate credit as ‘Ba1' with a ‘stable' outlook, and Fitch rates the company's corporate credit as ‘BB+' with a ‘stable' outlook. For further information on Fresenius Medical Care's credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

Announcement of Management Board Change

On March 9, 2012, Fresenius Medical Care announced a change in the Management Board. Rice Powell will succeed Dr. Ben J. Lipps as CEO of Fresenius Medical Care AG & Co. KGaA and Chairman of the Management Board, effective January 1, 2013. The appointment of Rice Powell is part of the company's succession plan to ensure a smooth transition of leadership. Ben Lipps was appointed Chief Executive Officer and Chairman of the Management Board in 1999. In recognition of his extraordinary achievements and unique expertise Dr. Ben J. Lipps has been appointed Honorary Chairman of the supervisory boards of Fresenius Medical Care AG & Co. KGaA and the Fresenius Medical Care Management AG, effective January 1, 2013.

Closing of the acquisition of Liberty Dialysis Holdings

Fresenius Medical Care North America has closed the acquisition of Liberty Dialysis Holdings, Inc., the holding company of Liberty Dialysis and Renal Advantage effective February 28, 2012. The closing followed the completion of the review of the transaction and issuance of a consent decree by the United States' Federal Trade Commission. In connection with the consent decree, Fresenius Medical Care completed the sale of 44 clinics to Dialysis Newco, Inc. ("DSI Renal"). The acquisition of Liberty Dialysis Holdings Inc. is expected to add annual revenues of around $ 700 million and 201 clinics to Fresenius Medical Care's network for an investment, net of proceeds from the divestiture, of approximately $1.5 billion.

Sales and earnings outlook for 2012 confirmed

For the full year 2012, the company confirms its sales and earnings outlook.

The company expects revenue to grow to around $14 billion in 2012.

Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion. This does not include the investment gain in the amount of approximately $ 127 million in the first quarter of 2012.

For 2012, the company expects to spend around $700 million on capital expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

"Our first quarter results show an excellent start for the year with both the North American as well as the International segment continuing their strong operating performance. On this basis we clearly confirm our previous guidance for the full year 2012 expecting another record year in terms of revenue and earnings", said Ben Lipps, chief executive officer of Fresenius Medical Care. "We have made very good progress on our growth initiatives globally and successfully closed the acquisition of Liberty Dialysis during the first quarter of 2012. With our global base we continue to be well positioned for the continuing success of our business."

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2012 on Thursday, May 3, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

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Fresenius Medical Care, the world's largest provider of dialysis products and services, expects another record result for 2012. At the annual general meeting in Frankfurt am Main today, Dr. Ben Lipps, the company's chief executive officer, confirmed the full-year outlook. Fresenius Medical Care expects revenue to grow to around $14 billion in 2012. Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion.

"Our stakeholders can be proud that their company is indeed making a difference in patients' lives with our superior products and clinical services, and through our innovative research into new treatment modalities and reimbursement concepts,'' Dr. Lipps said in his speech to the meeting. "Fresenius Medical Care has retained its global leadership position and we continue to shape the future of the dialysis industry. We have the ability to grow through the expansion of our clinic network and of our product portfolio, and by adding new services.''

It was the last Fresenius Medical Care annual general meeting under Dr. Lipps' leadership: The company announced in March that Rice Powell has been appointed to take over as CEO on January 1, 2013, when Dr. Lipps will retire from the Management Board and become the Supervisory Board's Honorary Chairman.

With a large majority of 99.89% the shareholders approved the company's 15th consecutive increase in dividend, which was raised to €0.69 from €0.65 per ordinary share and to €0.71 from €0.67 per preference share.

Shareholders approved the actions taken and decisions made by the Supervisory Board and the Management Board with a majority of more than 99%.

At the annual general meeting, 76.94% of the subscribed capital was represented. Only ordinary-share holders were entitled to vote.

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Fresenius Medical Care North America (FMCNA) announced today that the Food and Drug Administration (FDA) has classified FMCNA's voluntary action to change the labeling on its dialysate products as a Class 1 recall.

In conjunction with this classification, and to further reinforce the importance of correct dialysate dosing, FMCNA will continue its process to place updated labels on its NaturaLyte® and GranuFlo® Acid Concentrate products, and to update its hemodialysis machine operator's manuals. To date, FMCNA has notified more than 90 percent of its customers of these two labeling updates, and will continue with that effort until it is complete.

The FDA's action does not involve the removal of any FMCNA products from the marketplace.

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Summary Second Quarter 2012:

Net revenue: $3,428 million, +9%

Operating income (EBIT): $589 million, +16%

Net income^*: $289 million, +11%
Earnings per ordinary share: $0.95, +10%

Earnings excluding investment gain:

Net income^*: $276 million, +6%

Earnings per ordinary share: $0.91, +5%

Summary First Half 2012:

Net revenue: $6,677 million, +9%

Operating income (EBIT): $1,092 million, +14%

Net income^*: $660 million, +37%

Earnings per ordinary share: $2.17, +36%

Earnings excluding investment gain:

Net income^*: $520 million, +8%

Earnings per ordinary share: $1.71, +7%


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


Fresenius Medical Care AG & Co. KGaA, the world's largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2012.


Second Quarter 2012

Revenue

Net revenue for the second quarter of 2012 increased by 9% to $3,428 million (+13% at constant currency) compared to the second quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 13% to $2,605 million (+16% at constant currency) and dialysis product revenue decreased by 1% to $823 million and increased by +6% at constant currency.

North America revenue for the second quarter of 2012 increased by 14% to $2,249 million. Dialysis services revenue grew by 15% to $2,043 million with a same market growth of 4%. Average revenue per treatment for U.S. clinics increased to $351 in the second quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue increased by 3% to $206 million mainly as a result of higher sales of hemodialysis products.

International revenue increased by 1% to $1,171 million (+ 11% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 5% to $562 million (+16% at constant currency). Dialysis product revenue decreased by 3% to $609 million and increased by 6% at constant currency, mainly driven by higher sales of dialysis machines and dialyzers.

Earnings

Operating income (EBIT) for the second quarter of 2012 increased by 16% to $589 million compared to $510 million in the second quarter of 2011. This resulted in an operating margin of 17.2% for the second quarter of 2012 compared to 16.2% for the corresponding quarter in 2011.

In North America, the operating margin increased from 17.7% to 19.2%. Average costs per treatment for U.S. clinics decreased by $3 to $280 in the second quarter of 2012 as compared to $283 in the second quarter of 2011.

In the International segment, the operating margin increased from 17.5% to 17.7%.

Net interest expense for the second quarter of 2012 was $104 million, compared to $75 million in the second quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2012 was $289 million, an increase of 11% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $13 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and represents an adjustment to the amount recorded in the first quarter of 2012 as part of the continuing finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 6% to $276 million.

Income tax expense was $172 million for the second quarter of 2012 compared to $149 million in the second quarter of 2011, reflecting effective tax rates of 34.6% and 34.2%, respectively. Excluding the investment gain the effective tax rate was 35.5%.

Earnings per ordinary share (EPS) for the second quarter 2012 was $0.95 and $0.91 if excluding the investment gain. This represents an increase compared to the second quarter of 2011 of 10% and of 5%, respectively. The weighted average number of ordinary shares outstanding for the second quarter of 2012 was approximately 300.4 million shares, compared to 298.6 million shares for the second quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash flow

In the second quarter of 2012, the company generated $451 million in cash from operations, an increase of 45% compared to the corresponding figure last year and representing 13.2% of revenue. The cash flow generation was supported by a favorable development of days sales outstanding.

A total of $151 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $300 million compared to $194 million in the second quarter of 2011. A total of $6 million in cash was generated from divestitures, net of acquisitions. Free cash flow after acquisitions and divestitures was $306 million, compared to minus $590 million in the second quarter of 2011.


First Half 2012:

Revenue and Earnings

Net revenue for the first half of 2012 increased by 9% to $6,677 million (+12% at constant currencies) compared to the first half of 2011. Organic revenue growth was 4% in the first half of 2012.

Operating income (EBIT) for the first half of 2012 increased by 14% to $1,092 million compared to $955 million in the first half of 2011. The operating income margin increased to 16.4% for the first half of 2012 as compared to 15.6% in the same period in 2011.

Net interest expense for the first half of 2012 was $203 million compared to $146 million in the same period of 2011.

For the first half of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $660 million, up by 37% from the first half of 2011. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% to $520 million.

Income tax expense for the first half of 2012 was $309 million compared to $273 million in the same period in 2011, reflecting effective tax rates of 30.1% and 33.8%, respectively. Excluding the investment gain the effective tax rate was 34.8%.

In the first half of 2012, earnings per ordinary share rose by 36% to $2.17 and by 7% to $1.71 if excluding the investment gain. The weighted average number of ordinary shares outstanding during the first half of 2012 was approximately 300.3 million.

Cash Flow

Cash from operations during the first half of 2012 was $932 million compared to $487 million for the same period in 2011, representing 14% of revenue.

A total of $274 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first half of 2012 was $658 million compared to $256 million in the same period in 2011. A total of $1,520 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $862 million compared to minus $866 million in the first half of last year.

Please refer to the attachments for a complete overview on the second quarter and first half of 2012.

Patients – Clinics – Treatments

As of June 30, 2012, Fresenius Medical Care treated 256,456 patients worldwide, which represents a 14% increase compared to the previous year's figure. North America provided dialysis treatments for 164,058 patients, an increase of 17%. Including 28 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 166,282. The International segment provided dialysis treatment to 92,398 patients, an increase of 7% over the prior year's figure.

As of June 30, 2012, the company operated a total of 3,123 clinics worldwide, which represents a 10% increase compared to the previous year's figure. The number of clinics is comprised of 2,046 clinics in North America (2,074 including managed clinics), and 1,077 clinics in the International segment, representing an increase of 12% and 6%, respectively.

During the first half of 2012, Fresenius Medical Care delivered approximately 18.89 million dialysis treatments worldwide. This represents an increase of 14%, compared to last year's figure. North America accounted for 11.89 million treatments, an increase of 12%. The International segment delivered 7.0 million treatments, an increase of 18%.

Employees

As of June 30, 2012, Fresenius Medical Care had 84,194 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 5,000 employees is due to overall growth in the company's business and acquisitions including Liberty Dialysis Holdings, Inc.

Debt/EBITDA ratio

The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.77 at the end of the second quarter of 2011 to 2.92 at the end of the second quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.

Rating

Moody's affirmed the company's corporate credit as ‘Ba1' with a ‘stable' outlook, and Fitch rates the company's corporate credit as ‘BB+' with a ‘stable' outlook. Standard & Poor's placed the company's corporate credit on review as ‘BB+' with a possible downgrade from "stable" to "negative".

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

Sales and earnings outlook for 2012 confirmed

For the full year 2012, the company confirms its sales and earnings outlook.

The company expects revenue to grow to around $14 billion in 2012.^*

Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion^*. This does not include the investment gain in the amount of $140 million in the first half of 2012.

For 2012, the company expects to spend around $700 million on capital expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

Ben Lipps, chief executive officer of Fresenius Medical Care, commented: "We achieved a very good operating performance in the second quarter of 2012. We are very pleased with the progress we and our clinical associates are achieving to improve global patient care outcomes, notably in anemia and nutrition management and the continued reduction in hospital days. North America is progressing well with its integration of the Liberty acquisition. Revenue growth in both North America and International was double digit in constant currency and despite the difficult global economic environment, we have improved cash collection, which also reflects the dedication of our staff and credibility we have with payers. In summary, we are affirming our guidance for the full year 2012 and expect another record year for the company."

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and first half of 2012 on Wednesday, August 1, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

^*Outlook includes a +/- 0-2% deviation from the respective number.

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Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, today announced a change in its Management Board. The Supervisory Board of Fresenius Medical Care Management AG has appointed Ronald (Ron) Kuerbitz as a Management Board member, effective January 1, 2013. Mr. Kuerbitz will succeed Rice Powell as CEO of Fresenius Medical Care North America. This appointment is part of the company's succession plan to ensure a smooth transition of leadership in North America. Mr. Powell will assume the role of CEO, Fresenius Medical Care AG & Co. KGaA, and Chairman of the Management Board, effective January 1, 2013 as announced in March of 2012.

Ron Kuerbitz currently serves as Executive Vice President responsible for Market Development and Administration for Fresenius Medical Care North America. He joined Fresenius Medical Care in 1997 to lead its corporate development function and was later named as Fresenius Medical Care North America's General Counsel and Chief Administrative Officer. Mr. Kuerbitz has 20 years of experience in the health care field, having held positions in law, compliance, business development, government affairs and operations. Since 2011 Mr. Kuerbitz has served as Chairman of Kidney Care Partners in Washington D.C., a coalition of patient advocates, dialysis professionals, care providers and device and pharmaceutical manufacturers working together to improve the quality of care for individuals with chronic kidney disease. Mr. Kuerbitz is a graduate of Albion College and received his juris doctor degree from the Yale Law School.

"We are pleased to facilitate an orderly transition process with the appointment of Ron Kuerbitz as CEO for Fresenius Medical Care North America," said Ben Lipps, Chief Executive Officer of Fresenius Medical Care and Chairman of the Management Board. "Ron's successful record and his extensive management experience within Fresenius Medical Care and the health care field qualify him superbly for the position. The fact that this appointment has been filled internally reflects the strength and depth of our management team and will ensure a smooth transition going forward".

Ulf Mark Schneider, Chairman of the Supervisory Board of Fresenius Medical Care Management AG, said: "Ron has made outstanding contributions to the success of Fresenius Medical Care over the years. With his superb understanding of the strategic and regulatory opportunities and challenges ahead of us, Ron's leadership will ensure the continued success of the company. We are looking forward to working with him in his new role".

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Third Quarter 2012 Summary:

Net revenue: $3,418 million, +7%
Operating income (EBIT): $568 million, +6%
Net income*: $270 million, -3%
Earnings per ordinary share: $0.88, -4%

Nine Months 2012 Summary

Net revenue: $10,095 million, +8%
Operating income (EBIT): $1,659 million, +11%
Net income*: 930 million, +22%
Earning per ordinary share: $3.05, +21%

Earnings excluding investment gain:

Net income*: $790 million, +4%
Earnings per ordinary share: $2.59, +3%

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

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2012.

3rd Quarter of 2012

Revenue

Net revenue for the third quarter of 2012 increased by 7% to $3,418 million (+11% at constant currency) compared to the third quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 10% to $2,605 million (+12% at constant currency) and dialysis product revenue decreased by 1% to $813 million and increased by 7% at constant currency.

North America revenue for the third quarter of 2012 increased by 13% to $2,249 million. Dialysis services revenue grew by 15% to $2,047 million with a same market treatment growth of 4%. Average revenue per treatment for U.S. clinics increased to $349 in the third quarter of 2012 compared to $345 for the corresponding quarter in 2011. Dialysis product revenue decreased by 1% to $202 million. After adjusting for the Liberty acquisition, dialysis product revenue increased by 2%.

International revenue decreased by 2% to $1,163 million and increased by 7% at constant currency. Organic revenue growth was 7%. Dialysis services revenue decreased by 4% to $558 million and increased by 6% at constant currency. Dialysis product revenue decreased by 1% to $605 million and increased by 9% at constant currency.

Earnings

Operating income (EBIT) for the third quarter of 2012 increased by 6% to $568 million compared to $534 million in the third quarter of 2011. This resulted in an operating margin of 16.6% for the third quarter of 2012 compared to 16.8% for the corresponding quarter in 2011.

In North America, the operating margin decreased from 18.8% to 18.7%. Average costs per treatment for U.S. clinics increased by $2 to $281 in the third quarter of 2012 as compared to $279 in the third quarter of 2011.

In the International segment, the operating margin decreased from 17.3% to 16.8%.

Net interest expense for the third quarter of 2012 was $108 million, compared to $68 million in the third quarter of 2011. This development was mainly attributable to the higher level of indebtedness as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012 to finance dialysis clinic acquisitions.

Income tax expense was $153 million for the third quarter of 2012 compared to $163 million in the third quarter of 2011, reflecting effective tax rates of 33.3% and 35.0%, respectively.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2012 was $270 million, a decrease of 3% compared to the corresponding quarter of 2011.

Earnings per ordinary share (EPS) for the third quarter 2012 was $0.88 compared to $0.92 for the third quarter of 2011. The weighted average number of shares outstanding for the third quarter of 2012 was approximately 305.5 million shares, compared to 303.2 million shares for the third quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash flow

In the third quarter of 2012, the company generated $535 million in cash from operations, an increase of 16% compared to the corresponding figure last year and representing 15.7% of revenue. The cash flow generation was supported by the favorable earnings development as well as the favorable development of working capital items including inventory.

A total of $164 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $371 million (representing 10.8% of revenue) compared to $313 million in the third quarter of 2011. A total of $37 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $334 million, compared to $264 million in the third quarter of 2011.

Nine Months of 2012

Revenue and Earnings

Net revenue for the first nine months of 2012 increased by 8% to $10,095 million (+11% at constant currency) compared to the first nine months of 2011. Organic revenue growth was 4% in the first nine months of 2012.

Operating income (EBIT) for the first nine months of 2012 increased by 11% to $1,659 million compared to $1,488 million in the first nine months of 2011. The operating income margin increased to 16.4% for the first nine months of 2012 as compared to 16.0% in the same period in 2011.

Net interest expense for the first nine months of 2012 was $311 million compared to $214 million in the same period of 2011.

For the first nine months of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $930 million, up by 22% from the first nine months of 2011. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. Excluding this investment gain, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 4% to $790 million.

Income tax expense for the first nine months of 2012 was $462 million compared to $436 million in the same period in 2011, reflecting effective tax rates of 31.1% and 34.2%, respectively. Excluding the investment gain the effective tax rate for the first nine months of 2012 was 34.3%.

In the first nine months of 2012, earnings per ordinary share rose by 21% to $3.05 and by 3% to $2.59 if excluding the investment gain. The weighted average number of shares outstanding during the first nine months of 2012 was approximately 304.7 million compared to 302.7 million shares for the first nine months of 2011.

Cash Flow

Cash from operations during the first nine months of 2012 was $1,467 million compared to $950 million for the same period in 2011, representing 14.5% of revenue.

A total of $438 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2012 was $1,029 million compared to $570 million in the same period in 2011. A total of $1,557 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $528 million compared to minus $601 million in the first nine months of last year.

Please refer to the attachments for a complete overview on the third quarter and first nine months of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Patients – Clinics – Treatments

As of September 30, 2012, Fresenius Medical Care treated 256,521 patients worldwide, which represents a 12% increase compared to the previous year's figure. North America provided dialysis treatments for 163,454 patients, an increase of 16%. Including 31 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 165,754. The International segment provided dialysis treatment to 93,067 patients, an increase of 6% over the prior year's figure.

As of September 30, 2012, the company operated a total of 3,135 clinics worldwide, which represents a 9% increase compared to the previous year's figure. The number of clinics is comprised of 2,056 clinics in North America (2,087 including managed clinics), and 1,079 clinics in the International segment, representing an increase of 12% and 4%, respectively.

During the first nine months of 2012, Fresenius Medical Care delivered approximately 28.6 million dialysis treatments worldwide. This represents an increase of 12%, compared to last year's figure. North America accounted for 18.1 million treatments, an increase of 12%. The International segment delivered 10.5 million treatments, an increase of 13%.

Employees

As of September 30, 2012, Fresenius Medical Care had 85,368 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 6,200 employees is due to overall growth in the company's business and acquisitions including Liberty Dialysis Holdings, Inc.

Debt/EBITDA ratio

The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the third quarter of 2011 to 2.81 at the end of the third quarter of 2012. The debt/EBITDA ratio at the end of the second quarter 2012 was 2.92.

Rating

During the third quarter of 2012, Standard & Poor's removed the company's ratings from review and affirmed the company's corporate credit as ‘BB+' with a ‘stable' outlook. Moody's rates the company's corporate credit as ‘Ba1' with a ‘stable' outlook, and Fitch rates the company's corporate credit as ‘BB+' with a ‘stable' outlook. For further information on Fresenius Medical Care's credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations/ Credit Relations.

Successful Renewal of Credit Agreement

Fresenius Medical Care successfully renewed its syndicated credit agreement including a revolving facility and a long term loan. The refinancing of those facilities was well received in the bank market. The company entered into a $3.85 billion syndicated credit agreement, comprised of 5-year revolving facilities (including a $200 million U.S. Dollar facility, a €500 million Euro facility and a $ 400 million multi-currency facility) and a 5-year $2.6 billion term loan. Proceeds from the credit facilities were used to refinance the company's existing credit facilities, which otherwise would have matured on March 31, 2013, and for general corporate purposes.

Sales and earnings outlook for 2012 confirmed

For the full year 2012, the company confirms its sales and earnings outlook.

The company expects revenue to grow to ~ $14 billion in 2012*. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to ~ $1.14 billion*. This does neither include the investment gain in the amount of $140 million in the first nine months of 2012 nor does it consider charges of up to $70 million after tax mainly related to the intended renegotiation of the distribution, manufacturing and supply agreement for iron products in North America to reflect changes in the market and a donation to the American Society of Nephrology foundation to establish the Ben J. Lipps Research Fellowship Program.

*We define the ~ sign as a +/- 0-2% deviation from the respective numbers.

For 2012, the company expects to spend ~ $700 million on capital expenditures and ~ $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

Ben Lipps, chief executive officer of Fresenius Medical Care, commented: "In light of the negative implications from the difficult economic environment and from currency fluctuations, we achieved good operating results with an excellent operating cash flow in the third quarter of 2012. In summary, we are confirming our guidance for the full year at the lower end of the previously indicated range. We anticipate some special collection efforts related to services performed in prior years and other initiatives in the fourth quarter that will help us to achieve our guidance. The integration progress of our latest acquisitions continues and we are very pleased with our Quality Improvement programs and patient outcomes continuing to improve in nutritional status and reduced hospital days. The CEO transition to Rice Powell continues on track with the appointment of Ron Kuerbitz as the new CEO for North America effective January 2013." 

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2012 on Wednesday, October 31, 2012, at 3:30 p.m. CET / 10:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

Contact

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

Documents

Text as PDF document (000-E_13112012, 31 KB)

Fresenius Medical Care reached a remarkable milestone today when the company, the world's largest provider of dialysis products and services, produced its 500,000th dialysis machine. The machine, from the multiple prize-winning 5008 series, came off the production line at the Schweinfurt, Germany plant and was donated to the Deutsche Nierenstiftung, a German non-profit organization for dialysis and kidney transplants.

"This landmark achievement testifies to our technological as well as to our commercial success," said Kent Wanzek, the Fresenius Medical Care Management Board member responsible for Global Manufacturing Operations. "Constant innovation is what has made us the world market leader in dialysis machines. As a vertically integrated provider of dialysis equipment and services, we strive for continuous improvements in quality at every step, to make dialysis as safe and easy as possible for patients, and to keep it affordable for everyone."

Emanuele Gatti, Fresenius Medical Care CEO for Europe, Africa and Latin America (EMEALA) and Global Chief Strategist, said: "Over more than three decades we have steadily improved our dialysis technology, which has allowed us to expand far beyond our home market in Germany. Today, our dialysis machines are in demand worldwide and helping patients in every region of the globe. It is our goal that every person requiring treatment will one day have access to it. We are happy to be donating this very special machine to the Deutsche Nierenstiftung as a sign of appreciation for their tremendous work."

In hemodialysis, essential functions normally performed by a healthy kidney are carried out by a dialysis machine, which pumps blood out of the patient's body, through a bloodline system and into a dialyzer, which acts as an artificial kidney or filter. There, a fluid known as dialysate transports the toxins and excess water filtered from the blood away from the body. The machine also pumps dialysis fluid into the dialyzer in a separate, circular stream flowing in the opposite direction, controls both streams, and introduces an anticoagulant medication such as heparin. To ensure safe, efficient treatment for the patient, the system also includes a variety of automated monitoring and control functions.

Fresenius Medical Care began developing its own dialyzers and dialysis machines in the mid-1970s, with serial production of the company's first dialysis machine starting in 1979. The first model, the A2008, became the world's best-seller, and successor models have enabled Fresenius Medical Care to maintain its market-leading position until this day. Fresenius Medical Care currently produces dialysis machines in Schweinfurt and at a sister plant in Walnut Creek, in the United States.

Contact

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

Documents

Text as PDF document (PDF, 34 KB)

Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, announced today the appointment of Dr. Olaf Schermeier (40) as chief officer of global research and development (R&D) and member of the management board. He will start in his new position on March 1, 2013.

Dr. Schermeier has many years of experience in various areas of the health care industry. Since 2004 he has served in senior research and development positions and currently serves as president of global R&D for Draeger Medical, Lübeck, Germany. In this capacity he leads the organization's global product development for respiratory therapy, anesthesia, warming therapy, patient monitoring and clinical IT. He was also responsible for reorganizing the company's R&D efforts into one global R&D organization. Dr. Schermeier holds a doctorate degree (PhD) in Computer Science from the Technical University of Berlin, Germany and graduated from the University of Hannover, Germany in Electrical Engineering.

Rice Powell, chief executive officer of Fresenius Medical Care effective January 1, 2013, said: "It is important for our future to continue to ensure market-oriented product innovations and improvements. At the same time we have to further increase the efficiency of our processes on a global basis. For this reason, we created the new role chief officer of global R&D. Olaf Schermeier's depth of global experience with Draeger Medical will provide us with some superb knowledge in this respect. We are fortunate to have a person as qualified as Olaf Schermeier and we are looking forward to working with him in this role"

Contact

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

Documents

Text as PDF document (PDF, 32 KB)

Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, announced today that on December 12, 2012, a group of plaintiffs' counsel filed a petition to form a federal multidistrict litigation in the United States District Court for the District of Massachusetts and thereby consolidate wrongful death lawsuits against the company's North American subsidiary Fresenius Medical Care Holdings, Inc. and subsidiaries (FMCNA). The complaints to be consolidated allege generally that inadequate labeling and warnings for FMCNA's dialysate concentrate products NaturaLyte® and GranuFlo® caused harm to patients. The company believes that these lawsuits are without merit, and intends to defend them vigorously.

Ben Lipps, chief executive officer of Fresenius Medical Care, commented: "We have commented many times on our pride in our global team's commitment to quality. One has to understand the nature of the medical status that influences the acid/base balance in dialysis patients. The company's actions related to these products were appropriate and responsible. Both products are safe and effective and were reviewed and cleared by the Food and Drug Administration several years ago. I am confident of our position on this medical issue".

On December 7, 2012, FMCNA received a subpoena from the United States Attorney for the District of Massachusetts requesting production of a range of documents relating to products manufactured by FMCNA. FMCNA intends to cooperate fully in this matter.