Home Management Report Outlook Investments

As of December 31, 2007, Fresenius Medical Care’s receivables securitization program of US$ 650 million were only partially and Fresenius SE’s € 250 million commercial paper program was not utilized. Please see the Management Report for details.

Our refinancing requirements in 2008 are already fully covered by the capital market transactions carried out in 2007. There are only limited refinancing requirements in 2009 and 2010. These can be met from cash flow and, if necessary, from existing credit facilities.

INVESTMENTS

Fresenius plans to invest in further growth and to increase capital expenditure in property, plant and equipment. In 2008, we expect to invest about € 750 million in property, plant and equipment and in intangible assets. This will again be significantly more than the € 705 million invested in 2007. The increase will mainly be in the Fresenius Medical Care business segment. Approximately two-thirds of the capital expenditure budgeted will be invested at Fresenius Medical Care, while Fresenius Kabi and Fresenius Helios will each account for about 15%. Investments at Fresenius Medical Care will focus on the construction and expansion of dialysis clinics, and on the expansion and maintenance of production plants. Fresenius Kabi will invest in expanding and maintaining production facilities and in introducing new manufacturing technologies. These developments will enable further improvements in production efficiency. At Fresenius Helios we will be investing primarily in modernizing hospitals and in hospital equipment. The regional focus of the investments will be on Europe and North America, which will account for about 45% and 40%, respectively. The remainder will be invested in Asia, Latin America, and Africa. About 25% of the funds will be invested in Germany.

PROCUREMENT

As a result of the sharply increased prices for energy and raw materials, the ongoing optimization of our procurement management, including price and conditions as well as product quality, is a key factor for further earnings growth. We expect the procurement costs for oil-based intermediate products to rise.

FINANCIAL TARGETS BY BUSINESS SEGMENT
	Targets 2008	Fiscal year 2007
Fresenius Medical Care
Sales	> US$ 10.4 billion	US$ 9,720 million
Net income	US$ 805 - 825 million	US$ 717 million
Fresenius Kabi
Sales growth (in constant currency)	12 - 15%	€ 2,030 million
EBIT margin	~ 16.5%	16.4%
Fresenius Helios
Sales	> € 2,050 million	€ 1,841 million
EBIT	€ 160 - 170 million	€ 155 million
Fresenius Vamed
Sales growth	5 - 10%	€ 408 million
EBIT growth	5 - 10%	€ 26 million
Fresenius Biotech
EBIT	~ € -50 million	€ -50 million