EMPLOYEES

Our employees’ skills and commitment, motivation and willingness to assume responsibility are the foundations of our performance and the future success of Fresenius. The Company’s growth over the last years creates new tasks and challenges, offering wide-ranging career opportunities in a global health care group. Systematic and individualized employee development and training is therefore a core focus of our human resources activities.

EMPLOYEE DEVELOPMENT AND PERSONNEL MARKETING

Continuity of personnel development is of highest importance at Fresenius. For this reason in 2007 we concentrated primarily on broadening and deepening the existing personnel development programs. These were rolled out to additional divisions of the Company. More employees in Germany and abroad had the opportunity to take part in training schemes to develop their professional, management or personal skills individually or as members of a team or a project group. They were also able to learn from feedback processes – procedures for identifying development potential and training needs – and to put skills acquired from intercultural training courses into practice in the workplace.

Our trainee program is designed to meet our ongoing requirements for qualified specialists and managerial staff and, equally, to give these employees the opportunity to develop their own career paths. The program combines challenging “on-the-job“ tasks with training modules at a business school.

To promote recognition of Fresenius as a preferred employer for the long term, the Company is represented at trade fairs and congresses and participates in studies. We took part in the “Top Employers Germany 2007“ survey for instance, conducted by CRF* in collaboration with independent business journalists, the magazine karriere and the geva-institut. Key criteria in the study were employment security, compensation, corporate climate and working hours. Fresenius was ranked as one of Germany’s top 85 employers.

In 2007, HELIOS launched a personnel marketing campaign in various newspapers. The aim is to attract qualified doctors. The campaign shows doctors in all phases of their professional life and illustrates additional benefits that HELIOS offers as an employer. Medical students for instance already receive an allowance during their one-year practical internship, and can also take part in the “Med- Trainee“ program. Under the “AIW Extra“ program, resident physicians not only receive appropriate compensation but also receive structured and practice-oriented training. With the slogan “Attending physicians stay attending physicians“, the tariff agreement for attending physicians guarantees that medical staff in this position are grouped in the correct tariff scale and thus receive a basic salary corresponding to their position of responsibility. Under a scholarship program attending physicians can also pursue further selective training and prepare themselves for other management functions at HELIOS. Finally, chief medical officers can draw on a network full of opportunities. Involved in decisions regarding the specialist teams, they can therefore shape and continuously improve the treatment process and the quality of the medical results, both within their specific discipline and at HELIOS as a whole.

For its nursing staff HELIOS not only provides basic training but also offers opportunities for further qualifications, for instance as a medical assistant. Through staff training HELIOS improves the standard of medical quality and also assures a closer integration of medical and nursing care. Medical assistant activities reduce the work load of physicians, offer a broader spectrum of activities, and guarantee better patient care. For further information on HELIOS’ training opportunities visit the website at www.helios-akademie.de (German language only).

* CRF is an independent company that initiates and coordinates international research projects for business and industry and publishes them in exclusive publications.

VOCATIONAL TRAINING

With its training initiatives, Fresenius is helping to improve the prospects for young people in the job market. To find suitable candidates we have stepped up our marketing activies at schools. Our employees conduct intensive discussions with students about the training opportunities we offer and we also invite them to visit us and provide job application guidance. At the same time, teachers can attend training courses within the Arbeitskreis SchuleWirtschaft (School & Industry Working Group). At the end of November 2007, with the title “Training Live“, we held the first Open Day for vocational training at our corporate headquarters.

In Germany, at the end of 2007, Fresenius employed about 1,300 young people in apprenticeships in 34 different job specifications, as well as over 20 students pursuing courses of study at vocational training academies. With this commitment, we are providing training well above our own requirements and fulfilling our responsibility to society at large.

PROFIT-SHARING SCHEME AND STOCK OPTION PLAN

Providing value-based performance incentives for our employees is standard at Fresenius. We have been offering a stock option plan, linked directly to the performance of the Fresenius shares, to executives and members of the Management Board since 1998. In 2007, 913,420 convertible bonds were issued under the 2003 stock option plan.

A profit-sharing scheme has been in place for non-executive employees for ten years. They receive a bonus in the form of shares based on Group EBIT. Approximately 1.1 million shares have been issued to employees since this scheme was introduced. The bonus for 2007, which will be paid in 2008, is 1,526 gross for full-time employees. Employees can receive either the full amount in shares or two-thirds of the amount in shares and the rest in cash.

It is a reflection of our employees’ confidence in Fresenius’ successful future development that, in 2007, more than half opted to receive their full entitlement in shares.

TEAM@WORK – THE FRESENIUS EMPLOYEE AWARD

In light of the excellent response in the first two years, we again invited entries for the third team@work Award in 2007, with a reward of € 50,000. This award was, of course, created to foster team spirit and strengthen cooperation, but the aim is also to optimize work processes and to identify opportunities for cost savings.

In 2007, we were able to honor two teams: the HELIOS Klinikum Berlin-Buch, Fresenius Kabi and Fresenius Netcare team and the HELIOS Kliniken Schwerin and Fresenius Medical Care Germany team. The first team demonstrated their cooperation in providing post-hospital patient care involving clinical nutrition at HELIOS Klinikum Berlin-Buch. To be able to provide patients with seamless care after they are discharged from the hospital, the clinic, in collaboration with Fresenius Kabi, developed a standardized process for the transition from inpatient to outpatient care. In outpatient care, the patient manager, following the Fresu-Care concept, sees that the patient is supplied with special tube feed nutrition and a suitable application system immediately after they are discharged. The patients and the members of the family are also instructed on how to cope with the special nutritional situation. Novel software developed by Fresenius Netcare transmits the all the patient’s data regularly to the patient manager, reducing time and frictional losses. Since June 2007, this routine has been extended to other clinics in Germany.

The second team carried out a trend-setting pilot project in the area of dialysis. An ultra-modern nephrology unit was set up at HELIOS Kliniken in Schwerin – the first in Germany to provide both inpatient and outpatient care for people with kidney disease. In future, this unit will also be focusing on the prevention of kidney disease.

SE CONVERSION AND EMPLOYEE PARTICIPATION

Fresenius AG was converted into a European Company – Fresenius SE – on July 13, 2007. This was preceded by the successful conclusion of the procedure for the involvement of employees in the conversion process. All the employees and their representative bodies from the Fresenius companies in the EU Member States and in the signatory states of the European Economic Area (EEA) had to delegate one member* per country to the so-called Special Negotiating Body (SNB). The SNB’s constitutive meeting, attended by 22 employees and trade union representatives from 16 countries, took place on January 16 and 17, 2007. In the following months, the Company’s management team, with the representatives of the SNB, negotiated the framework for the involvement of employees. In particular, this concerned determining the composition of the employee representatives on the Supervisory Board of Fresenius SE, their election and the activities of the new SE-works council. The employee participation procedure was completed with the conclusion of a joint agreement on the involvement of employees in Fresenius SE on July 13, 2007.

Information on employee numbers can be found in our Management Report.

* Seven members were delegated from Germany because of the large number of employees in this country.