Fresenius Medical Care Reports Strong Third Quarter and Nine Months Results; Improved Guidance for 2009

Tue Nov 3, 2009 6:11am EST
 
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http://www.businesswire.com/news/home/20091103005776/en

BAD HOMBURG, Germany--(Business Wire)--
Fresenius Medical Care AG & Co. KGaA (NYSE:FMS)(FWB:FME):

 Summary Third Quarter 2009:                                                                                            
                                                                                                                        
 Net revenue                                                              $  2,889 million          + 6  %  
 Operating income (EBIT)                                                  $  451 million            + 7  %  
 Net income attributable to Fresenius Medical Care AG & Co. KGaA          $  225 million            + 9  %  
 Earnings per share                                                       $  0.76                   + 9  %  


                                                                                                                        
 Summary First Nine Months 2009:                                                                                        
                                                                                                                        
 Net revenue                                                              $  8,212 million          + 4  %  
 Operating income (EBIT)                                                  $  1,265 million          + 2  %  
 Net income attributable to Fresenius Medical Care AG & Co. KGaA          $  645 million            + 7  %  
 Earnings per share                                                       $  2.16                   + 6  %  
                                                                                                                        


Fresenius Medical Care AG & Co. KGaA ("the Company" or "FMC AG & Co. KGaA"), the
world`s largest provider of dialysis products and services, today announced its
results for the third quarter and first nine months of 2009. 

Third Quarter 2009:

Revenue

Net revenue for the third quarter of 2009 increased by 6% to $2,889 million (10%
at constant currency) compared to the third quarter of 2008. Organic revenue
growth worldwide was 8%. Dialysis Services revenue grew by 8% to $2,147 million
(10% at constant currency) in the third quarter of 2009. Dialysis Product
revenue increased by 2% to $742 million (an increase of 8% at constant currency)
in the same period. 

North America revenue increased by 10% to $1,950 million. Organic revenue growth
was 8%. Dialysis Services revenue grew by 10% to $1,741 million. Average revenue
per treatment for the U.S. clinics increased to $348 in the third quarter of
2009 compared to $333 for the same quarter in 2008 and $344 for the second
quarter of 2009. This development was mainly based on reimbursement increases
and increased utilization of pharmaceuticals. Dialysis Product revenue increased
by 14% to $209 million and was led by pharmaceutical sales, especially of the
newly licensed intravenous iron products. 

International revenue remained nearly unchanged at $939 million, compared to the
third quarter of 2008. Based on constant currency, revenue grew by 9%. Organic
revenue growth was 7%. Dialysis Services revenue was $406 million, an increase
of 2% (+12% at constant currency). Dialysis Product revenue decreased by 2% to
$533 million. Product sales grew by 6% based on constant currencies, led by
increased pharmaceutical sales and sales of dialyzers. 

Earnings

Operating income (EBIT) increased by 7% to $451 million compared to $422 million
in the third quarter of 2008, resulting in an operating margin of 15.6%, equal
to the operating margin for the third quarter of 2008. Compared to the second
quarter of 2009 this represents a 50 basis points improvement. The third quarter
operating margin was favorably impacted by an increase in revenue per treatment,
an excellent cost management in the U.S. and a decrease in bad debt expenses.
The operating margin development was negatively influenced by increased prices
for pharmaceuticals, the impact of the launch of a generic version of PhosLo® in
the U.S. market and unfavorable exchange rate effects in the International
segment. 

In North America, the operating margin was unchanged at 16.7%, as in the third
quarter of 2008. The margin was favorably impacted by an increase in revenue per
treatment, including commercial payor revenue, higher utilization of EPO and
Medicare reimbursement increases, an excellent cost management in the U.S. and a
decrease in bad debt expenses thanks to higher cash collections on receivables.
This was offset by cost increases for pharmaceuticals related to both price and
utilization, as well as the impact of the launch of a generic version of PhosLo®
in the U.S. market and increased depreciation expense. 

In the International segment, the operating margin increased by 60 basis points
to 16.7% due to lower production costs resulting from lower prices for raw
material and energy as well as economies of scale and lower bad debt expenses,
which was partially offset by unfavorable foreign exchange rate effects. 

Net interest expense for the third quarter of 2009 was $75 million compared to
$87 million in the same quarter of 2008, mainly due to lower short-term interest
rates. 

Income tax expense was $131 million for the third quarter of 2009 compared to
$120 million in the third quarter of 2008, reflecting effective tax rates of
35.0% and 35.7%, respectively. 

Net income attributable to FMC AG & Co. KGaAfor the third quarter of 2009 was
$225 million, an increase of 9%. 

Earnings per share (EPS) for the third quarter of 2009 rose by 9% to $0.76 per
ordinary share compared to $0.69 for the third quarter of 2008. The weighted
average number of shares outstanding for the third quarter of 2009 was
approximately 298.3 million shares compared to 297.2 million shares for the
third quarter of 2008. The increase in shares outstanding resulted from stock
option exercises in the past twelve months. 

Cash Flow

In the third quarter of 2009, the Company generated $443 million in cash from
operations, an increase of 41% compared to the third quarter of 2008 and
representing approximately 15% of revenue. The cash flow performance was
positively influenced by increased earnings and a favorable development of the
Days Sales Outstanding. 

A total of $139 million was spent for capital expenditures, net of disposals.
Free Cash Flow before acquisitions was $304 million compared to $155 million in
the third quarter of 2008. A total of $26 million in cash was used for
acquisitions net of divestitures. Free Cash Flow after acquisitions and
divestitures was $278 million compared to $116 million in the third quarter of
last year. 

Nine Months Ended September 30, 2009:

Revenue and Earnings

Net revenue was $8,212 million, up 4% from the first nine months of 2008. At
constant currency, net revenue rose 9%. Organic growth was 8% in the first nine
months of 2009. 

Operating income (EBIT) increased by 2% to $1,265 million compared to $1,240
million in the first nine months of 2008, resulting in an operating margin of
15.4% compared to 15.7% for the first nine months of 2008. This development was
mainly due to higher personnel expenses, price increases for pharmaceuticals
including Heparin as well as the impact of the launch of a generic version of
PhosLo® in the U.S. market. These effects were partially offset by a strong
performance of the dialysis product business, increased commercial payor revenue
as well as the effect of cost control measures. 

Net interest expense for the first nine months of 2009 was $225 million compared
to $252 million in the same period of 2008, mainly due to lower short-term
interest rates. 

Income tax expense was $345 million in the first nine months of 2009 compared to
$357 million in the same period in 2008, reflecting effective tax rates of 33.2%
and 36.1%, respectively. Tax expense was positively impacted by a non-recurring
revaluation of a tax claim recorded in the second quarter of 2009. 

For the first nine months of 2009, net income attributable to FMC AG & Co. KGaA
was $645 million, up 7% from the first nine months of 2008. 

Earnings per ordinary share rose by 6% to $2.16. The weighted average number of
shares outstanding during the first nine months of 2009 was approximately 298.0
million. 

Cash Flow

Cash from operations during the first nine months of 2009 was $880 million
compared to $716 million for the same period in 2008, representing approximately
11% of revenue. The cash flow generation benefited from increased earnings and
the favorable development of the Days Sales Outstanding. 

A total of $388 million was spent for capital expenditures, net of disposals.
Free Cash Flow before acquisitions for the first nine months of 2009 was $492
million compared to $223 million in the same period in 2008. A total of $57
million in cash was used for acquisitionsnet of divestitures. Free Cash Flow
after acquisitions and divestitures was $435 million compared to $93 million in
the first nine months of last year. 

Please refer to the attachments for a complete overview on the third quarter and
first nine months of 2009 and the reconciliation of non-GAAP financial measures
included in this release to the most comparable GAAP financial measures.

Patients - Clinics - Treatments

As of September 30, 2009, Fresenius Medical Care treated 192,804 patients
worldwide, which represents a 6% increase compared to the same period last year.
North America provided dialysis treatments for 130,522 patients, an increase of
4%. Including 31 clinics managed by Fresenius Medical Care North America, the
number of patients in North America was 132,158. The International segment
served 62,282 patients, an increase of 10% over last year. 

As of September 30, 2009, the Company operated a total of 2,509 clinics
worldwide. This is comprised of 1,749 clinics in North America (1,780 including
managed clinics), an increase of 5%, and 760 clinics in the International
segment, an increase of 11%. 

Fresenius Medical Care delivered approximately 21.84 million dialysis treatments
worldwide during the first nine months of 2009. This represents an increase of
6% year over year. North America accounted for 14.75 million treatments, an
increase of 4%, and the International segment delivered 7.09 million treatments,
an increase of 10% over last year. 

Employees

As of September 30, 2009, Fresenius Medical Care had 67,245 employees (full-time
equivalents) worldwide compared to 63,990 employees as of September 30, 2008.
This increase of over 3,200 employees is due to the overall growth in the
Company`s business. 

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) decreased from 2.71 at the end of the third quarter of
2008 to 2.62 at the end of the third quarter of 2009. At the end of 2008, the
debt/EBITDA ratio was 2.69. 

Rating

In the third quarter of 2009, Standard & Poor`s Rating Services continued to
rate the Company`s corporate credit as `BB` with a `stable` outlook. Moody's
also affirmed its rating of the Company`s corporate credit as `Ba1` with a
`stable` outlook. As in the previous quarter, Fitch rates the Company`s
corporate credit as `BB` while revising its outlook from `negative` to `stable`.
For further information on Fresenius Medical Care`s credit ratings, maturity
profiles and credit instruments, please visit our website at www.fmc-ag.com /
Investor Relations / Credit Relations. 

Outlook for 2009

For the full year of 2009, the Company now expects to achieve revenue of around
$11.2 billion (previously $11.1 billion), an increase of around 8% in constant
currency. 

Net income attributable to FMC AG & Co. KGaAis now expected to be between $865
million and $890 million in 2009. Previously the Company expected the net income
to be in the range of $850 million and $890 million for the full year 2009. 

In addition, the Company expects to spend $550 to $650 million on capital
expenditures and $200 to $250 million (previously $200 to $300 million) on
acquisitions. The projected debt/EBITDA ratio has been retained unchanged
atbelow 2.7. 

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, said: "We are very
pleased with our results in the third quarter of 2009, which reflects an
excellent performance by all regions. While we maintained our increased
commitment to research and development, our sustained high organic growth
globally and good cost containment accounted for this overall successful
operating performance. The free cash flow for the third quarter exceeded our
expectations and resulted from excellent cash collections in North America. Our
strong performance in the quarter provides the basis for us to improve our
guidance for the full year 2009." 

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the
third quarter and the first nine months of 2009 on Tuesday, November 03, 2009,
at 3:30 pm CET / 9:30 am EST. The Company invites investors to listen to the
live webcast of the call at the Company`s website www.fmc-ag.com in the
"Investor Relations" section. A replay will be available shortly after the call.


Fresenius Medical Care is the world's largest integrated provider of products
and services for individuals undergoing dialysis because of chronic kidney
failure, a condition that affects more than 1,770,000 individuals worldwide.
Through its network of 2,509 dialysis clinics in North America, Europe, Latin
America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis
treatment to 192,804 patients around the globe. Fresenius Medical Care is also
the world's leading provider of dialysis products such as hemodialysis machines,
dialyzers and related disposable products. Fresenius Medical Care is listed on
the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS,
FMS/P). 

For more information about Fresenius Medical Care, visit the Company`s website
at www.fmc-ag.com. 

This release contains forward-looking statements that are subject to various
risks and uncertainties. Actual results could differ materially from those
described in these forward-looking statements due to certain factors, including
changes in business, economic and competitive conditions, regulatory reforms,
foreign exchange rate fluctuations, uncertainties in litigation or investigative
proceedings, and the availability of financing. These and other risks and
uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports
filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care
AG & Co. KGaA does not undertake any responsibility to update the
forward-looking statements in this release.

                                                                                                                                                                                                       
 Fresenius Medical Care                                          Three Months Ended                                                Nine Months Ended                                             
 Statement of Earnings                                           September 30,                                                     September 30,                                                 
 (in US-$ thousands, except share and per share data)            2009                   2008                   % Change      2009                   2008                   % Change  
 (unaudited)                                                                                                                                                                         
                                                                                                                                                                                     
 Net revenue                                                                                                                                                                         
 Dialysis Care                                                   2,146,349              1,984,938              8.1%          6,123,774              5,753,484              6.4%      
 Dialysis Products                                               742,320                728,327                1.9%          2,088,274              2,136,801              -2.3%     
 Total net revenue                                               2,888,669              2,713,265              6.5%          8,212,048              7,890,285              4.1%      
                                                                                                                                                                                     
 Cost of revenue                                                 1,910,168              1,803,886              5.9%          5,439,530              5,201,721              4.6%      
 Gross profit                                                    978,501                909,379                7.6%          2,772,518              2,688,564              3.1%      
                                                                                                                                                                                     
 Selling, general and administrative                             504,520                466,983                8.0%          1,443,206              1,388,680              3.9%      
 Research and development                                        22,656                 20,206                 12.1%         64,508                 59,978                 7.6%      
 Operating income (EBIT)                                         451,325                422,190                6.9%          1,264,804              1,239,906              2.0%      
                                                                                                                                                                                     
 Interest income                                                 (4,624)                (6,467)                -28.5%        (16,797)               (19,266)               -12.8%    
 Interest expense                                                79,769                 93,516                 -14.7%        241,466                271,275                -11.0%    
 Interest expense, net                                           75,145                 87,049                 -13.7%        224,669                252,009                -10.8%    
 Income before taxes                                             376,180                335,141                12.2%         1,040,135              987,897                5.3%      
 Income tax expense1)                                            131,687                119,492                10.2%         345,436                356,513                -3.1%     
 Net income                                                      244,493                215,649                13.4%         694,699                631,384                10.0%     
 Less: Net income attributable to Noncontrolling interest1)      19,193                 9,314                  106.1%        50,180                 28,088                 78.7%     
 Net income attributable to FMC AG & Co. KGaA                    225,300                206,335                9.2%          644,519                603,296                6.8%      
                                                                                                                                                                                     
 Operating income (EBIT)                                         451,325                422,190                6.9%          1,264,804              1,239,906              2.0%      
 Depreciation and amortization                                   118,291                107,897                9.6%          334,133                306,761                8.9%      
 EBITDA                                                          569,616                530,087                7.5%          1,598,937              1,546,667              3.4%      
                                                                                                                                                                                     
 Total bad debt expenses                                         50,189                 56,274                               159,078                157,922                          
                                                                                                                                                                                     
 Earnings per ordinary share                                     $0.76                  $0.69                  8.8%          $2.16                  $2.03                  6.4%      
 Earnings per ordinary ADS                                       $0.76                  $0.69                  8.8%          $2.16                  $2.03                  6.4%      
                                                                                                                                                                                     
                                                                                                                                                                                     
 Weighted average number of shares                                                                                                                                                   
 Ordinary shares                                                 294,443,038            293,417,973                          294,181,563            293,030,503                      
 Preference shares                                               3,857,335              3,802,913                            3,832,367              3,790,298                        
                                                                                                                                                                                     
 Percentages of revenue                                                                                                                                                              
 Cost of revenue                                                 66.1%                  66.5%                                66.2%                  65.9%                            
 Gross profit                                                    33.9%                  33.5%                                33.8%                  34.1%                            
                                                                                                                                                                                     
 Selling, general and administrative                             17.5%                  17.2%                                17.6%                  17.6%                            
 Research and development                                        0.8%                   0.7%                                 0.8%                   0.8%                             
 Operating income (EBIT)                                         15.6%                  15.6%                                15.4%                  15.7%                            
 Interest expense, net                                           2.6%                   3.2%                                 2.7%                   3.2%                             
 Income before taxes                                             13.0%                  12.4%                                12.7%                  12.5%                            
 Income tax expense                                              4.6%                   4.4%                                 4.2%                   4.5%                             
 Net income attributable to Noncontrolling interest              0.7%                   0.3%                                 0.6%                   0.4%                             
 Net income attributable to FMC AG & Co. KGaA                    7.8%                   7.6%                                 7.8%                   7.6%                             
                                                                                                                                                                                     
 EBITDA                                                          19.7%                  19.5%                                19.5%                  19.6%                            
                                                                                                                                                                                     
                                                                                                                                                                                     
 1) Due to the adoption of the new accounting rule ASC 810 (US GAAP), tax expenses related to minority interests of partnerships were reclassified to noncontrolling interest. The effect is neutral to net income attributable to FMC AG & Co. KGaA. The previous year`s periods have been adjusted accordingly. 


                                                                                                                                                                
 Fresenius Medical Care                         Three Months Ended                                    Nine Months Ended                                   
 Segment and Other Information                  September 30,                                         September 30,                                       
 (in US-$ million)                              2009             2008             % Change      2009              2008              % Change  
 (unaudited)                                                                                                                                  
                                                                                                                                              
 Net revenue                                                                                                                                  
 North America                                  1,950            1,771            10.1%         5,600             5,153             8.7%      
 International                                  939              942              -0.3%         2,612             2,737             -4.6%     
 Total net revenue                              2,889            2,713            6.5%          8,212             7,890             4.1%      
                                                                                                                                              
 Operating income (EBIT)                                                                                                                      
 North America                                  325              296              9.8%          894               858               4.2%      
 International                                  156              152              3.0%          457               462               -1.1%     
 Corporate                                      (30)             (26)             16.7%         (86)              (80)              7.3%      
 Total operating income (EBIT)                  451              422              6.9%          1,265             1,240             2.0%      
                                                                                                                                              
 Operating income in percentage of revenue                                                                                                    
 North America                                  16.7%            16.7%                          16.0%             16.7%                       
 International                                  16.7%            16.1%                          17.5%             16.9%                       
 Total                                          15.6%            15.6%                          15.4%             15.7%                       
                                                                                                                                              
                                                                                                                                              
 Employees                                                                                                                                    
 Full-time equivalents                                                                          67,245            63,990                      


                                                                                                                                                 
 Fresenius Medical Care                                                                                                                          
 Reconciliation of non US-GAAP                                                                                                                   
 financial measures to the most directly                                 Three Months Ended                 Nine Months Ended              
 comparable US-GAAP financial measures                                   September 30,                      September 30,                  
 (in US-$ million)                                                       2009                 2008       2009                 2008   
 (unaudited)                                                                                                                         
                                                                                                                                     
                                                                                                                                     
                                                                                                                                     
 Segment information North America                                                                                                   
 Net revenue                                                             1,950                1,771                                  
 Costs of revenue and research and development                           1,309                1,187                                  
 Selling, general and administrative                                     316                  288                                    
 Costs of revenue and operating expenses                                 1,625                1,475                                  
 Operating income (EBIT)                                                 325                  296                                    
 Percent of revenue                                                      16.7%                16.7%                                  
                                                                                                                                     
                                                                                                                                     
 Dialysis Products revenue incl. and excl. internal sales                                                                            
 North America                                                                                                                       
 Dialysis Products revenue incl. internal sales                          376                  321                                    
 less internal sales                                                     (167)                (137)                                  
 Dialysis Products external sales                                        209                  184                                    
 International                                                                                                                       
 Dialysis Products revenue incl. internal sales                          613                  622                                    
 less internal sales                                                     (80)                 (78)                                   
 Dialysis Products external sales                                        533                  544                                    
                                                                                                                                     
 Reconciliation of cash flow from operating activities to EBITDA 1)                                                                  
 Total EBITDA                                                                                            1,599                1,547  
 Interest expense, net                                                                                   (225)                (252)  
 Income tax expense                                                                                      (345)                (357)  
 Change in working capital and other non cash items                                                      (149)                (222)  
 Net cash provided by operating activities                                                               880                  716    
                                                                                                                                     
 Annualized EBITDA                                                                                                                   
 Operating income (EBIT) last twelve months                                                              1,697                1,668  
 Depreciation and amortization last twelve months                                                        443                  410    
 Non cash charges                                                                                        48                   44     
 Annualized EBITDA                                                                                       2,188                2,122  
                                                                                                                                                 
 1) EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care's long-term debt instruments.                


                                                                                                                
 Fresenius Medical Care                                                  September 30,      December 31,  
 Balance Sheet                                                           (unaudited)        (audited)     
 (in US-$ million)                                                       2009               2008          
                                                                                                          
 Assets                                                                                                   
 Current assets                                                          4,726              4,212         
 Intangible assets                                                       8,281              8,156         
 Other non-current assets                                                2,690              2,552         
 Total assets                                                            15,697             14,920        
                                                                                                          
 Liabilities and equity                                                                                   
 Current liabilities                                                     2,642              3,145         
 Long-term liabilities                                                   6,341              5,652         
 Total equity                                                            6,714              6,123         
 Total liabilities and equity                                            15,697             14,920        
                                                                                                          
 Equity/assets ratio:                                                    43%                41%           
                                                                                                          
                                                                                                          
 Debt                                                                                                     
 Short-term borrowings                                                   312                684           
 Short-term borrowings from related parties                              43                 1             
 Current portion of long-term debt and capital lease obligations         160                455           
 Long-term debt and capital lease obligations, less current portion      4,561              3,957         
 Trust Preferred Securities                                              663                641           
 Total debt                                                              5,739              5,738         


                                                                                   
 Fresenius Medical Care                                                            
 Cash Flow Statement                                                               
 Nine Months Ended September 30,                           2009       2008   
 (in US-$ million)                                                           
 (unaudited)                                                                 
                                                                             
 Operating activities                                                        
 Net income                                                695        631    
 Depreciation / amortization                               334        307    
 Change in working capital and other non cash items        (149)      (222)  
 Cash Flow from operating activities                       880        716    
                                                                             
 Investing activities                                                        
 Purchases of property, plant and equipment                (398)      (502)  
 Proceeds from sale of property, plant and equipment       10         9      
 Capital expenditures, net                                 (388)      (493)  
 Free Cash Flow                                            492        223    
                                                                             
 Acquisitions and investments, net of cash acquired                          
 and net purchases of intangible assets                    (109)      (176)  
 Proceeds from divestitures                                52         46     
 Acquisitions, net of divestitures                         (57)       (130)  
 Free Cash Flow after investing activities                 435        93     
                                                                             
 Financing activities                                                        
 Change in accounts receivable securitization program      (335)      452    
 Change in intercompany debt                               (68)       (1)    
 Change in other debt                                      212        310    
 Redemption of Trust Preferred Securities                  -          (678)  
 Proceeds from exercise of stock options                   26         38     
 Distributions to noncontrolling interest                  (48)       (27)   
 Contributions from noncontrolling interest                8          -      
 Dividends paid                                            (232)      (252)  
 Cash Flow from financing activities                       (437)      (158)  
                                                                             
 Effects of exchange rates on cash                         4          -      
 Net increase (decrease) in cash                           2          (65)   
                                                                             
 Cash at beginning of period                               222        245    
 Cash at end of period                                     224        180    


                                                                                                                    
 Fresenius Medical Care                                                                                             
 Quarterly Performance Scorecard - Revenue                                                                          
 Three months ended September 30,                       2009           cc         2008           cc     
 (in US-$ thousands, except per-treatment revenue)                                                      
                                                                                                        
 North America                                                                                          
 Net revenue                                            1,949,384                 1,770,820             
 Growth year-over-year                                  10.1%                     6.6%                  
                                                                                                        
 Dialysis Care                                          1,740,040                 1,586,594             
 Growth year-over-year                                  9.7%                      6.2%                  
 U.S. per treatment                                     348                       333                   
 Per treatment                                          342                       328                   
 Sequential growth                                      1.2%                      1.7%                  
 Growth year-over-year                                  4.1%                      1.8%                  
                                                                                                        
 Dialysis Products                                                                                      
 incl. internal sales                                   375,788                   320,908               
 Growth year-over-year                                  17.1%                     8.1%                  
 External sales                                         209,343                   184,226               
 Growth year-over-year                                  13.6%                     10.5%                 
                                                                                                        
 International                                                                                          
 Net revenue                                            939,115                   942,278               
 Growth year-over-year                                  -0.3%          8.6%       23.1%          14.4%  
                                                                                                        
 Dialysis Care                                          406,309                   398,345               
 Growth year-over-year                                  2.0%           12.2%      29.8%          20.1%  
 Per treatment                                          167            184        179            166    
 Sequential growth                                      5.2%                      -2.1%                 
 Growth year-over-year                                  -6.4%          2.9%       16.8%          8.1%   
                                                                                                        
 Dialysis Products                                                                                      
 incl. internal sales                                   612,631                   622,010               
 Growth year-over-year                                  -1.5%          7.2%       18.7%          10.3%  
 External sales                                         532,806                   543,933               
 Growth year-over-year                                  -2.0%          5.9%       18.6%          10.5%  
                                                                                                                    
 cc = at constant exchange rates                                                                                    


                                                                                           
 Fresenius Medical Care                                                                    
 Quarterly Performance Scorecard - Dialysis Care Volume                                    
 Three months ended September 30,                          2009           2008       
                                                                                     
 North America                                                                       
 Number of treatments                                      5,060,911      4,829,339  
 Treatments per day                                        64,062         61,131     
 Per day sequential growth                                 1.0%           0.5%       
 Per day year-over-year growth                             4.8%           3.2%       
 Same market growth year-over-year                         3.6%           3.0%       
                                                                                     
 International                                                                       
 Number of treatments                                      2,427,410      2,226,681  
 Same market growth year-over-year                         4.5%           9.5%       
                                                                                     
                                                                                     
 Fresenius Medical Care                                                                    
 Quarterly Performance Scorecard - Expenses                                                
 Three months ended September 30,                          2009           2008       
                                                                                     
 North America                                                                       
 Costs of revenue and operating expenses                                             
 Percent of revenue                                        83.3%          83.3%      
 Selling, general and administrative                                                 
 Percent of revenue                                        16.2%          16.3%      
 Bad debt expenses                                                                   
 Percent of revenue                                        2.5%           2.9%       
 Dialysis Care operating expenses/Treatment (in US-$)      283            274        
 Sequential growth                                         -0.6%          1.6%       
 Growth year-over-year                                     3.3%           2.1%       
                                                                                     
 Total Group                                                                         
 Costs of revenue and operating expenses                                             
 Percent of revenue                                        84.4%          84.4%      
 Selling, general and administrative                                                 
 Percent of revenue                                        17.5%          17.2%      
 Effective tax rate                                        35.0%          35.7%      


                                                                                    
 Fresenius Medical Care                                                             
 Quarterly Performance Scorecard - Cash Flow/Investing Activities                   
 Three months ended September 30,                       2009         2008     
 (in US-$ thousands, except number of de novos)                               
                                                                              
 Total Group                                                                  
 Operating Cash Flow                                    443,168      314,512  
 Percent of revenue                                     15.3%        11.6%    
                                                                              
 Free Cash Flow before acquisitions                     304,345      154,670  
 Percent of revenue                                     10.5%        5.7%     
                                                                              
 Acquisitions and investments, net of divestitures      26,742       39,034   
                                                                              
 Capital expenditures, net                              138,823      159,842  
 Percent of revenue                                     4.8%         5.9%     
                                                                              
 Maintenance                                            52,136       63,818   
 Percent of revenue                                     1.8%         2.4%     
                                                                              
 Growth                                                 86,687       96,024   
 Percent of revenue                                     3.0%         3.5%     
                                                                              
 Number of de novos                                     23           29       
 North America                                          18           19       
 International                                          5            10       
                                                                              
                                                                              
 Fresenius Medical Care                                                             
 Quarterly Performance Scorecard - Balance Sheet                                    
 Three months ended September 30,                       2009         2008     
                                                                              
 Total Group                                                                  
 Debt (in US-$ million)                                 5,739        5,748    
 Debt/EBITDA                                            2.6          2.7      
                                                                              
 North America                                                                
 Days sales outstanding                                 55           60       
                                                                              
 International                                                                
 Days sales outstanding                                 112          108      


                                                                 
 Fresenius Medical Care                                          
 Quarterly Performance Scorecard                                 
 Three months ended September 30,          2009      2008  
                                                           
 Clinical Performance                                      
 North America (U.S.)                                      
 Single Pool Kt/v > 1.2                    96%       95%   
 Hemoglobin = 10-12g/dl                    64%       58%   
 Hemoglobin = 10-13g/dl                    87%       86%   
 Albumin >= 3.5 g/dl 1)                    82%       81%   
 Phosphate 3.5-5.5mg/dl                    54%       53%   
 Hospitalization Days per patient 2)       10.0      10.5  
 
(12 months ending September 30)                          
                                                           
                                                           
 Demographics                                              
 North America (U.S.)                                      
 Average age (in years)                    62        62    
 Average time on dialysis (in years)       3.6       3.6   
 Average body weight (in kg)               80        79    
 Prevalence of diabetes                    54%       53%   
                                                           
 1) International standard BCR CRM470                            
 2) Hospitalization data for 2009 includes legacy RCG facilities 
                                                           
                                                           
 Fresenius Medical Care                                          
 Quarterly Performance Scorecard                                 
 Three months ended September 30,          2009      2008  
                                                           
 Clinical Performance                                      
 Europe, Middle East and Africa                            
 Single Pool Kt/v > 1.2                    95%       95%   
 Hemoglobin = 10-12g/dl                    53%       51%   
 Hemoglobin = 10-13g/dl                    74%       76%   
 Albumin >= 3.5 g/dl 1)                    85%       85%   
 Phosphate 3.5-5.5mg/dl                    58%       60%   
 Hospitalization Days per patient          7.8       7.6   
 
(12 months ending September 30)                          
                                                           
                                                           
 Demographics                                              
 Europe, Middle East and Africa                            
 Average age (in years)                    64        63    
 Average time on dialysis (in years)       4.8       4.6   
 Average body weight (in kg)               70        69    
 Prevalence of diabetes                    28%       28%   
                                                           
 1) International standard BCR CRM470                            


Fresenius Medical Care AG & Co. KGaA
Investor Relations
Oliver Maier, + 49 6172 609 2601
Fax: + 49 6172 609 2301
ir@fmc-ag.com
or
North America:
Terry L. Morris, + 1 800 948 2538
Fax: + 1 615 345 5605
ir@fmc-ag.com
www.fmc-ag.com

Copyright Business Wire 2009

 

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