Fresenius Medical Care

Fresenius Medical Care achieved an excellent performance in 2007. Sales increased by 14%. Net income rose by impressive 34%. Operating performance in dialysis care was strong. Dialysis product sales grew substantially.

Fresenius Medical Care is the world’s leading provider of dialysis products and dialysis care for patients with chronic kidney failure. In 2007, we treated 173,863 patients at 2,238 dialysis clinics worldwide. The number of treatments increased by 11% to 26.4 million. We market our comprehensive range of products in more than 100 countries. A global production network ensures reliable patient care at any time. Fresenius Medical Care’s largest plants are in the United States, Germany and Japan.

BUSINESS DEVELOPMENT

In 2007, sales rose by 14% to US$ 9,720 million (2006: US$ 8,499 million). Organic growth contributed 6% to sales and acquisitions 7 %. Divestitures had a negative impact of 1%. In constant currency, sales increased by 12%. North America contributed 69%, Europe 22% and the rest of the world 9% to sales. Dialysis care accounted for 74% of sales and dialysis products for 26%.

EBIT increased by 20% to US$ 1,580 million (2006: US$ 1,318 million; adjusted for the gain from the divestiture of US dialysis clinics and one-time expenses related to the Renal Care Group acquisition US$ 1,315 million). The EBIT margin was 16.3% (2006: 15.5%).

Net income rose by 34% to US$ 717 million (2006: US$ 537 million, including one-time expenses of US$ 37 million).

DIALYSIS CARE

Fresenius Medical Care is the market leader in dialysis care in North America. We treated 34% of all dialysis patients in the United States in 2007.

The growth in dialysis care in North America was driven by the good operating performance from our existing activities. The consolidation of Renal Care Group for the full year has been a further contributing factor. Major growth drivers were an increased number of treatments and a higher average reimbursement per dialysis treatment. In 2007, the average revenue per dialysis treatment in the United States was US$ 327, US$ 6 more per treatment than in 2006. The improvement in revenue per treatment is mainly due to increases in the reimbursement rates we receive from private payors and the legislated 1.6% increase from public health insurance plans (composite rate).

FRESENIUS MEDICAL CARE BY REGIONS
	North America	Europe	Latin America	Asia-Pacific	Total

Sales (in million US$)	6,663	2,116	400	541	9,720
Dialysis patients (December 31)	121,431	26,902	17,741	7,789	173,863
Dialysis clinics (December 31)	1,602	362	169	105	2,238
Treatments (in million)	18.5	4.1	2.7	1.2	26.4

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