Management Report Operations and Business Environment Group Structure and Business 
The Management Board of Fresenius SE conducts the business and represents the company in dealings with third parties. As from January 1, 2008, the Management Board has seven members. According to the Management Board’s rules of procedure, each member is accountable for their own area of responsibility, but all have joint responsibility for the management of the group. The Management Board is required to report to the Supervisory Board regularly, in particular on corporate policy and strategy, profitability, current operations, and any other matters that could be of significance for the company’s profitability and liquidity.
The Supervisory Board appoints the members of the Management Board and advises and supervises the Management Board in its management of the Company, but is prohibited from managing the Company directly. However, the Management Board’s rules of procedure require it to obtain the Supervisory Board’s approval for specific activities.
The Supervisory Board is comprised of six shareholders’ representatives and six employees’ representatives. All 12 members of the Supervisory Board are appointed by the General Meeting. The employees’ six representatives must be appointed on the basis of a proposal put forward by the employees and must be accepted by the General Meeting. In accordance with the legal form of an SE, the employee representatives may come from various European countries.
The Supervisory Board must meet at least twice per calendar half-year. The appointment and dismissal of the members of the Management Board is in accordance with Article 39 of the SE Regulations. The statutes of Fresenius SE also provide that deputy members of the Management Board may be appointed.
For information on Management Board and the Supervisory Board compensation, please see pages 180 to 184 of the Notes.
Key products, services and business processes
Fresenius Medical Care offers a comprehensive range of products for hemodialysis and peritoneal dialysis and provides dialysis care at its own clinics in over 30 countries. Dialysis products are sold both to group clinics and to external dialysis care providers in more than 115 countries. Fresenius Kabi is one of the few companies to offer a comprehensive range of enteral and parenteral nutrition therapies. The company also offers a broad spectrum of products for fluid and blood volume replacement as well as an extensive portfolio of IV drugs. Fresenius Kabi sells its products mainly to hospitals in approximately 100 countries. Fresenius Helios operates hospitals mainly in Germany. Fresenius Vamed provides engineering and services for hospitals and health care facilities internationally.
Important markets and competitive position
Fresenius operates in more than 60 countries through its subsidiaries. The main markets are Europe and North America, where Fresenius generates 45% and 41% of its sales, respectively.
Fresenius Medical Care is the largest dialysis company in the world. Fresenius Kabi holds leading positions in Europe and in the growth markets of Asia-Pacific, Latin America, and South Africa. With the acquisition of APP Pharmaceuticals, Fresenius Kabi has become one of the leading suppliers of IV drugs in the United States. Fresenius Helios is a leading private hospital operator in Germany. Fresenius Vamed is one of the internationally leading companies in the field of health care engineering and services.
Legal and economic factors
The intrinsic importance of the life-saving and life-sustaining products and therapies that the group offers insures that the markets of the Fresenius Group are fundamentally stable and relatively independent of economic cycles. Furthermore, these markets are expanding, mainly for three reasons: demographics, the demand for innovative therapies in the industrialized countries, and the increasing availability of high-quality health care in the developing and newly industrializing countries.
