To our Shareholders:

Fresenius has fully achieved its objectives in 2007. We increased sales by 10 percent in constant currency to € 11.4 billion and operating income by 17 percent to € 1,609 million. Net income rose by 28 percent in constant currency to € 410 million. All our business segments contributed to this success with double-digit growth rates in operating income. We are committed to sustained growth and value creation as we continue to build Fresenius into a leading global health care group. 

Fresenius is active in several areas of health care. Diversification enhances financial stability for the Group, while decentralized entrepreneurial responsibility assures focused management of our individual business segments. Following this principle, we reorganized our hospital business at the beginning of 2008, splitting it into the two new business segments Fresenius Helios and Fresenius Vamed.

There are significant global growth opportunities in health care, and our business segments Fresenius Medical Care, Fresenius Kabi and Fresenius Vamed are well positioned to pursue them. Fresenius Helios will focus its efforts on the German hospital market, given its significant size and privatization potential.

In all our businesses a key objective is to maintain high organic growth rates – the most profitable form of growth. To accomplish this, we are constantly striving to better meet patients’ requirements and needs.

Acquisitions are a second important growth driver. We will continue to take advantage of attractive opportunities, targeting expansion through selected acquisitions. In our acquisition activity, we focus on professional and disciplined deal execution as well as swift and proper integration.

forward:thinking, the title of this Annual Report, is an integral part of our long-term approach to the health care business. We are constantly seeking new and more effective solutions, applying our know-how to medical improvements that will achieve the best outcomes for our patients.

• Fresenius Medical Care improves dialysis treatment outcomes by combining innovative products with optimized therapies that are adapted to patients’ medical needs. Insights gained from treatments in our clinics are frequently the source of product innovations.
• Fresenius Kabi focuses its expertise in infusion therapy and clinical nutrition on providing better care for critically-ill patients. Oncology is one major area where the company strives to improve standards of care and quality of life.
• Fresenius Helios is dedicated to improving medical outcomes in its hospital operations. An industry-leading, comprehensive quality management process – monitored by quality indicators – leads to continuous improvement of treatment outcomes.
• Fresenius Vamed offers planning and process services that enable hospitals to run their operations more efficiently. Patients´ needs and process optimization are the guiding principles.
• Fresenius Biotech is developing innovative antibody therapies to treat diseases in oncology that are presently incurable.

As we pursue our long-term corporate strategy, our financial targets are clearly defined: For 2008, we expect to increase sales by 8 to 10 percent in constant currency. Net income should grow more strongly, by 10 to 15 percent. We have ambitious mid-term targets for Fresenius as exemplified by our goal “15/15 in 2010”. This means that we are targeting revenues of € 15 billion and a Group EBIT margin of 15 percent in 2010. Putting this growth plan in place will require continued strong organic growth and selective acquisitions. We will continue to provide maximum transparency regarding our current performance and Fresenius’ future opportunities and strategies. This transparency enables you to assess the company and your investment in Fresenius.

I would like to sincerely thank our Group’s associates for their outstanding contributions and achievements in 2007. Their enthusiasm and commitment to excellence will be key as we constantly strive to improve the level of care for our patients. 

Thank you for your continued trust and support.

 

Dr. Ulf M. Schneider

Chairman of the Management Board