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Fresenius SE & Co. KGaA

Investor Presentation Mar 7, 2009

166_ip_2009-03-07_9c728942-225b-4c80-9a00-5338d64a598a.pdf

Investor Presentation

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Analyst Meeting – 2008 Results

February 19, 2009

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements contained in this presentation.

2008 – A Year of Significant Achievements

  • Record sales and earnings delivered on our commitments
    • Strong organic growth in all business segments, confirming non-cyclical business model
    • Fresenius Kabi accomplished U.S. market entry through acquisition of APP Pharmaceuticals
  • Acquisition closed in record-time
  • Long-term financing successfully completed
  • Strategic milestones in all business segments fully achieved

Fresenius Group: Financial Results

Group financial results before APP-transaction-related special items – for a reconciliation to EBIT and net income see page 22

€Fresenius SE: 6 % Dividend Increase Proposed

  • Proposed dividend: € 0.70 per ordinary share € 0.71 per preference share
  • 16th consecutive dividend increase
  • Total distribution: € 113.6 m; +10 %

Fresenius Group: Significant Sales and Earnings Growth in All Business Segments

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Fresenius Kabi: Achievements 2008

  • -Outstanding organic sales growth of 9 %
    • Profitability of underlying business improved →EBIT margin of 16.6 % pre-acquisitions
    • APP Pharmaceuticals:
  • -Integration on track
    • 2008 financial results fully in line with guidance
    • Strengthened oncology I.V. drug portfolio through acquisition of Dabur Pharma
  • -New reporting structure

Fresenius Kabi: Expected APP Pharmaceuticals Revenue Synergies

    • Areas identified:
  • → Introduce selected Kabi products to the U.S., initial focus on parenteral nutrition
  • → Launch selected APP I.V. drugs outside of the U.S.
  • -Product launches scheduled to start in 2010
    • € 50 – 70 million p.a. incremental sales expected by 2013

Fresenius Helios: Achievements 2008

  • -Strong organic revenue growth of 5 %
    • 100 bps EBIT margin expansion in established clinics to 9.4 %
  • -Krefeld/Huels hospital projects on track
    • 2008 privatization target fully achieved
    • 185-bed Mariahilf hospital (Hamburg) consolidated as of August 1, 2008
    • Hospital privatizations Mansfeld and Northeim awarded in Dec '08, closed in Feb '09
    • ~1,200 beds
    • € 136 million revenue in 2007

Fresenius Vamed: Achievements 2008

  • -Excellent sales growth of 28 %
    • Order intake at all-time high – providing predictable growth in project business
  • Quarterly record of € 183 million in Q4/08 accomplished
  • Order backlog increased by 12 %
    • Long-term service contracts secure sustainable growth in service business
    • Increased sales from managed service contracts* by 34 % to € 470 million

*not consolidated; related fees included in financial statements

Fresenius Biotech: Focus on Removab Product Approval / Launch

    • Received a positive CHMP opinion recommending the approval of Removab for the treatment of malignant ascites
    • Will be the first approved trifunctional antibody worldwide
    • Important milestone from development to successful commercialization of biotech products
    • Following authorization by the EC, Removab market launch is expected in H1/09

CHMP → EMEA's Committee for Medicinal Products for Human Use EC →European Commission

Fresenius Group: Entering 2009 with Confidence

  • Maintain strong organic growth momentum in all business segments
  • Milestones:

Successful integration of APP Pharmaceuticals and Dabur Pharma

Launch of Fresenius Biotech's first cancer product

Address turbulent economic environment with commercial prudence, secure financing and improving balance sheet ratios

Group Financials 2008 Outlook 2009

Fresenius Group: 2008 – Guidance Fully Achieved or Exceeded

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Fresenius Business Segments: 2008 – Guidance Fully Achieved or Exceeded

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Fresenius Kabi: High Organic Sales Growth Across All Product Segments


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Fresenius Kabi: High Organic Sales Growth Across All Regions


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Fresenius Kabi: Strong EBIT Growth


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Special Items related to APP-Transaction – EBIT and Net Income Reconciliation


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* In addition, € 73 m transaction-related financing expenses have been capitalized and will be depreciated over the life of the facility. The special items are included in the segment "Corporate/Other".

Fresenius Group: Cash Flow


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--

Fresenius Group: Debt and Interest Ratios

Debt excludes Mandatory Exchangeable Bonds

* Pro-forma APP acquisition and before special items

Fresenius Group: 2009 and Mid-Term Financial Outlook

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* Translation effects may impact Fresenius Kabi's margin as APP provides a significant earnings contribution from the US\$ area. This guidance is based on the US\$/€ exchange rate from early 2009.

Fresenius Group: Positive Outlook 2009

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* before special items due to MEB and CVR accounting

Attachments

Transaction-related special items

  • Purchase accounting adjustments:
  • US-GAAP accounting principles valid until year-end 2008 require full depreciation of acquired in-process R+D through the P&L at the closing of the acquisition. Under IFRS, acquired in-process R&D is capitalized and amortized over the expected life of the developed products.
  • The inventory step-up reflects the excess of fair value over book value of acquired semi-finished and finished products. The amount is capitalized and amortized in line with the sale of the respective products.
  • FX gain: The foreign exchange gain arises, inter alia, from US-Dollar strength increasing the value of US\$-denominated intercompany loans to Fresenius Kabi Pharmaceuticals Holdings, Inc.
  • Other financial result:
  • CVR (Contingent Value Right): The trading price of the CVR on the B/S date is considered as fair redemption value. Changes of this value are recognized in the P&L. Valuation changes will lead to quarterly gains or expenses until maturity.

Calculation as of Dec. 31, 2008: Δ between average of initial 5 days trading price of US\$ 0.97 and trading price at Dec. 31, 08 of US\$ 0.35 multiplied by 163.3 million CVRs = US\$ 101 million = € 75 million. In the B/S, the CVR liability was reduced from initially € 110 million to € 41 million.

  • MEB (Mandatory Exchangeable Bond): Mark-to-market accounting based on the Black-Scholes valuation model reflecting FMC's share price. Any change in fair value is recognized in the P&L. Valuation changes will lead to gains or expenses until maturity.
  • One-time financing expenses include commitment and funding fees for the bridge facility and the write-off of historic financing costs at APP due to refinancing of a 2007 syndicated loan.

Fresenius Group: Overview – Calculation of Minority Interest


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Fresenius Group: Solid Balance Sheet Structure

Fresenius Group: Debt Maturity Profile* December 31, 2008

* based on utilization of major financing instruments; excl. Fresenius Medical Care's Accounts Receivable Facility

Fresenius Kabi: High Organic Sales Growth in All Product Segments


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Presentation according to previous reporting structure

Fresenius Kabi: Sustainable Organic Sales Growth in All Regions


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Presentation according to previous reporting structure

Fresenius Kabi: Strong EBIT Growth


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Presentation according to previous reporting structure

Fresenius Kabi: Profit and Loss Statement


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Fresenius Kabi: Profit and Loss Statement (cont'd)


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Fresenius Kabi: Cash Flow Statement


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Fresenius Kabi: Balance Sheet


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Fresenius Helios: Outstanding Sales Growth


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y
r
2
0
2

D
i
i
t
t
(
d
l
d
)
v
e
s
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r
e
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i
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t
<
e
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n
c
s
a
y
r

6
l
l
T
t
o
a
s
a
e
s
2
2
3
1
,
8
1
4
1
,
%
1
5

Fresenius Helios: Excellent Earnings Development


m
2
0
0
8
2
0
0
7
G
h
t
r
o
w
b
l
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d
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p
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g
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r
8
1
1
9
%
4
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%
4
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A
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(
l
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)
t
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a
o
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y
r
6
-

D
i
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t
t
(
d
l
d
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v
e
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a
o
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y
r

1
T
l
E
B
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t
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a
1
7
5
1
5
5
%
1
3
M
i
a
r
g
n
8
2
%
8
%
4

Fresenius Helios: Performance Indicators

2
0
0
8
2
0
0
7
C
h
a
n
g
e
f
h
l
N
i
t
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t
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r
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c
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5
7
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8
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6
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t
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r
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1
7
2
4
9
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3
3
3
1
7
,
3
6
5
1
,
1
7
1
9
2
,
3
3
3
3
1
,
3
8
9
5
,
0
%
3
%
9
%
-
d
*
i
i
A
m
s
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n
s
(
)
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b
l
(
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-
5
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9
9
0
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1,
4
1
8
3
2
5
,
4
4
2
3
8
3
,
1,
1
2
7
6
1
3
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1
6
%
2
6
%
*
O
c
c
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p
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n
c
y
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t-
t
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s
a
c
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8
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8
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h
f
(
d
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*
A
t
t
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a
g
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e
n
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r
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s
a
c
e
c
a
e
u
r
-
7
1
3
0
1
7
1
3
1
9

* Clinics in Germany

Fresenius Helios:Sales Impact Hospital Acquisitions

2 Hospitals Northeim County € ~50 m closed in Feb '09 (Lower Saxony) 3 Hospitals Mansfeld-Südharz € ~86 m closed in Feb`09 (Saxony Anhalt)

Divestitures

4 Hospitals in Czech Republic € ~24 m in 2008 transferred to VAMED as of Oct 1, 2008

Acquisitions Annualized sales

Hospital Oberhausen (NRW) € ~20 m consolidated as of Apr 1, 2007 Hospital Lengerich (NRW) € ~12 m consolidated as of Apr 1, 2007 Municipal hospitals, Krefeld and Hüls € ~175 m consolidated as of Dec 31, 2007 Hospital Mariahilf, Hamburg € ~26 m consolidated as of Aug 1, 2008

Fresenius Helios: Profit & Loss Statement


m
2
0
0
8
2
0
0
7
k
R
2
0
0
8
e
m
a
r
s
l
S
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3
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8
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n
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b
f
S
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t
a
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w
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1
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6
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1
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9
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B
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M
i
%
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g
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2
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1
1
8
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2
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1
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B
I
T
M
i
%
a
r
g
n
1
7
5
8
2
1
5
5
8
4

Fresenius Helios: Profit & Loss Statement (cont'd)


m
2
0
0
8
2
0
0
7
R
k
2
0
0
8
e
m
a
r
s
N
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t
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0
6
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3
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m
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8
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s
1
2
-
1
0
-
i
N
t
e
n
c
o
m
e
8
0
6
4

Fresenius Helios: Cash Flow


m
2
0
0
8
2
0
0
7
R
k
2
0
0
8
e
m
a
r
s
N
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t
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(
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m
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c
w
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s
r
v
9
7
2
2
-

Fresenius Helios: Balance Sheet


m
2
0
0
8
2
0
0
7
R
k
8
2
0
0
e
m
a
r
s
b
l
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%
t
t
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r
:
l
l
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b
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t
t
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n
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t
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r
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r
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e
q
u
y
3
0
9
2
,
3
0
7
2
,

Fresenius Vamed: Excellent Sales Development – Order Intake at All-time High


m
2
0
0
8
2
0
0
7
C
h
a
n
g
e
b
P
j
i
t
r
o
e
c
u
s
n
e
s
s
3
3
6
2
5
9
3
0
%
S
b
i
i
e
r
v
c
e
u
s
n
e
s
s
1
8
8
1
4
9
2
6
%
l
l
T
t
o
a
s
a
e
s
2
5
4
8
4
0
2
8
%
*
O
d
i
k
t
r
e
r
n
a
e
2
4
5
3
9
5
8
%
*
O
d
b
k
l
r
e
r
a
c
o
g
5
7
1
5
1
0
%
1
2

* project business only

Fresenius Vamed: Sustainable EBIT Development


m
2
0
0
8
2
0
0
7
C
h
a
n
g
e
b
P
j
i
t
r
o
e
c
u
s
n
e
s
s
i
M
a
r
g
n
1
5
4
5
%
1
7
6
6
%
2
%
1
-
b
S
i
i
e
c
e
s
n
e
s
s
r
v
u
M
i
g
n
a
r
1
5
8
0
%
9
6
0
%
6
7
%
l
T
E
B
I
T
t
o
a
3
0
2
6
%
1
5
M
i
a
r
g
n
%
5
7
6
4
%
i
N
t
e
n
c
o
m
e
2
6
2
3
%
1
3

Fresenius Vamed: Profit & Loss Statement


m
2
0
0
8
2
0
0
7
R
k
8
2
0
0
e
m
a
r
s
l
S
a
e
s
5
2
4
0
8
4
h
O
i
2
5
%
t
g
n
g
o
r
a
c
r
w
:
f
d
l
d
C
t
o
s
o
g
o
o
s
s
o
4
3
9
3
3
6
f
G
i
t
r
o
s
s
p
r
o
%
M
i
a
r
g
n
8
5
1
6
2
7
2
6
1
7
S
G
&
A
f
l
%
o
s
a
e
s
5
5
1
0
5
6
4
1
1
3
E
B
I
T
D
A
i
%
M
a
r
g
n
3
5
6
7
3
1
6
7
E
B
I
T
M
i
%
a
g
n
r
3
0
5
7
2
6
6
4

Fresenius Vamed: Profit & Loss Statement (cont'd)


m
2
0
0
8
2
0
0
7
R
k
2
8
0
0
e
m
a
r
s
N
i
t
t
t
e
n
e
r
e
s
6 6 d
I
i
t
t
t
t
n
e
e
n
o
m
e
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p
e
p
m
e
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r
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c
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r
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s
b
f
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n
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g
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a
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s
d
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t
t
t
a
n
m
n
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s
s
r
y
r
3
6
3
2
I
t
n
c
o
m
e
a
e
s
x
T
%
t
a
a
e
x
r
1
0
2
7
0
9
2
7
1
M
i
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t
t
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n
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r
y
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r
e
s
s
0 0
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t
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c
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m
e
2
6
2
3
(
b
f
)
R
O
E
%
t
e
o
e
a
e
s
r
x
2
2
2
2
2
9

Fresenius Vamed: Cash Flow


m
2
0
0
8
2
0
0
7
k
R
2
0
0
8
e
m
a
r
s
N
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n
c
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m
e
(
l.
)
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i
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t
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t
t
n
c
m
n
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r
e
s
2
6
2
3
/
D
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t
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c
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m
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r
r
z
5 5
h
k
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p
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r
4
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4
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y
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i
%
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g
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r
2
7
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2
7
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4
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f
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w
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t
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a
c
q
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s
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v
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n
s
2
3
6
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A
i
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t
t
c
q
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n
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e
u
,
2
2
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5
-
i
l
l
i
i
i
C
h
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M
4
a
n
y
c
n
c
s
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e
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f
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a
n
e
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p
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v
c
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f
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F
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c
a
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o
(
b
f
d
d
d
)
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w
i
i
e
o
r
e
v
e
n
s
1 6
3
b
i
u
s
n
e
s
s

Fresenius Vamed: Balance Sheet


m
2
0
0
8
2
0
0
7
R
k
2
0
0
8
e
m
a
r
s
b
l
A
i
t
c
c
o
n
s
e
c
e
a
e
u
r
v
8
6
7
9
D
S
O
(
D
3
1,
2
0
0
8
)
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Fresenius Group: Key Figures According to IFRS


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* Among others, acquired in-process R+D has to be expensed through the P&L at the closing of the transaction due to current US GAAP accounting principles. According to IFRS acquired in-process R&D is capitalized and partially amortized reflecting the lifespan of the products. ** Before special items

Financial Calendar

  • 30.4.2009 Report on 1st quarter 2009
  • 8.5.2009 Annual General Meeting, Frankfurt/Main
  • 11.5.2009 Payment of Dividend*
  • 4.8.2009 Report on 1st half 2009
  • 3.11.2009 Report on 1st-3rd quarters 2009

Contact

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For further information and current news: http://www.fresenius.com

*Subject to approval by the AGM

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