Fresenius Medical Care Reports Strong Third Quarter and Nine Months 2007 Results

Fresenius Medical Care AG & Co. KGa (NYSE:FMS)(FWB:FME): Summary Third Quarter 2007:       Net revenue $ 2,426 million + 9% Operating income (EBIT) $ 397 million + 14% Net income $ 181 million + 30% Earnings per share $ 0.61 + 29% Summary First Nine Months 2007:       Net revenue $ 7,151 million + 16% Operating income (EBIT) $ 1,152 million + 19% Net income $ 520 million + 35% Earnings per share $ 1.76 + 34% Fresenius Medical Care AG & Co. KGaA ("the Company”), the world’s largest provider of Dialysis Products and Services, today announced its results for the third quarter and nine months of 2007. Third Quarter 2007: Revenue Net revenue for the third quarter 2007 increased by 9% to $2,426 million (6% at constant currency) compared to the third quarter 2006. Organic revenue growth worldwide was 6%. Dialysis Services revenue grew by 6% to $1,801 million (4% at constant currency) in the third quarter of 2007. Dialysis Product revenue increased by 18% to $625 million (12% at constant currency) in the same period. North America revenue increased by 3% to $1,660 million. Dialysis Services revenue grew by 1% to $1,494 million. Excluding effects of the divestiture of the perfusion business, Dialysis Service revenue increased by 3%. Average revenue per treatment for the U.S. clinics increased by 1% to $327 in the third quarter 2007 compared to $324 for the same quarter in 2006. Dialysis Product revenue increased by 18% to $167 million led by strong sales of our 2008K hemodialysis machines and the phosphate binding drug PhosLo. International revenue was $766 million, an increase of 23% (14% at constant currency) compared to the third quarter of 2006. Dialysis Services revenue reached $307 million, an increase of 32% (23% at constant currency). Dialysis Product revenue rose by 18% to $459 million (9% at constant currency), led by strong sales of hemodialysis machines, peritoneal dialysis products and dialyzers. Earnings Operating income (EBIT) increased by 14% to $397 million compared to $349 million in the third quarter 2006. Operating income for the third quarter 2006 includes costs of $7 million related to costs of restructuring and a gain of $1 million from the divestiture of dialysis clinics in conjunction with the acquisition of Renal Care Group. Excluding these effects, operating income for the third quarter 2007 increased by 12%, resulting in an operating margin of 16.4%. For the third quarter 2006 the operating margin was 15.9%. Operating income (EBIT) before one-time items Three months ended September 30, (in US-$ million)   2007   2006     Growth Operating income (EBIT)   397   349     + 14 % Cost of restructuring   -   7       Gain from divestiture   -   (1 )     Operating income (EBIT) before one-time items   397   355     + 12 % In North America, the operating margin increased from 16.3% (excluding the effects of one-time items) by 70 basis points to 17.0% due to revenue rate improvements, the new PhosLo business and higher product sales which more than offset higher personnel expenses. In the International segment, the operating margin decreased by 60 basis points to 17.6% mainly due to higher growth in the emerging markets and the effect of returning to normal plant maintenance from the shortened schedule in the prior year. Net interest expense for the third quarter 2007 was $95 million compared to $100 million in the same quarter of 2006. This positive development was mainly attributable to a lower debt level in combination with lower average interest rates and the recognition of interest income related to the collection of overdue receivables. Interest expense was impacted by $5 million ($3 million, net after taxes) as a result of the write-off of deferred financing costs related to the repayment of a portion of the Company’s senior credit agreement in connection with the issuance of $500 million senior notes. Income tax expense was $115 million for the third quarter of 2007 compared to $105 million in the third quarter of 2006, reflecting effective tax rates of 38.0% and 42.3%, respectively. In the third quarter 2006, the tax rate had been impacted by a tax audit in Germany. Excluding this impact, the tax rate was at 39.1%. Net income for the third quarter 2007 was $181 million, an increase of 30%. Net income increased by 27% when compared to the third quarter 2006 excluding the effects of one-time items in 2006. Net income before one-time items Three months ended September 30, (in US-$ million)   2007   2006     Growth Net income   181   139     + 30 % Cost of restructuring   -   5       Gain from divestiture   -   (1 )     Net income before one-time items   181   143     + 27 % Earnings per share (EPS) for the third quarter of 2007 rose by 29% to $0.61 per ordinary share compared to $0.47 for the third quarter of 2006. The weighted average number of shares outstanding for the third quarter of 2007 was approximately 295.8 million shares compared to 294.5 million shares for the third quarter of 2006. The increase in shares outstanding resulted from stock option exercises in 2006 and in the first nine months of 2007. Cash Flow In the third quarter of 2007, the Company generated $382 million in cash from operations, representing approximately 16% of revenue. The strong cash flow generation was primarily supported by earnings and reduction of working capital. A total of $123 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $259 million compared to $40 million in the third quarter of 2006 on a reported basis. A total of $24 million in cash was used for acquisitions, net of divestitures. Free Cash Flow after acquisitions was $235 million compared to $32 million in the third quarter of 2006. Nine Months Ended September 30, 2007: The operations of Renal Care Group (RCG) are included in the Company’s consolidated statements of income and cash flows from April 1, 2006, therefore, the current results for the first nine months are not directly comparable with the results of the first nine months for 2006. Revenue and Earnings Net revenue for the nine months ended September 30, 2007 was $7,151 million, up 16% from the same period in 2006. At constant currency, net revenue rose by 14%. Organic growth was 7% in the first nine months of 2007. Operating income (EBIT) increased by 19% to $1,152 million compared to $964 million in the first nine months of 2006. Operating income for the nine months ended September 30, 2006 includes costs of $12 million as a result of restructuring and the transformation of the Company’s legal form, and a gain from the clinic divestitures of $40 million. Excluding these items, operating income for the nine months 2007 increased by 23%. This performance resulted in an operating margin of 16.1% compared to 15.2% in the same period of 2006. Operating income (EBIT) before one-time items Nine months ended September 30, (in US-$ million)   2007   2006     Growth Operating income (EBIT)   1,152   964     + 19 % Cost of restructuring and transformation   -   12       Gain from divestiture   -   (40 )     Operating income (EBIT) before one-time items   1,152   936     + 23 % Net interest expense for the nine months ended September 30, 2007 was $281 million compared to $255 million in the same period of 2006. The increase was mainly the result of additional interest expense partially offset by the write-off in 2006 of deferred financing costs related to the 2003 senior credit facility of $15 million, both in conjunction with the financing of the RCG acquisition. Income tax expense was $331 million for the nine months compared to $314 million in the same period in 2006, reflecting tax rates of 38.0% and 44.3%, respectively. The tax rate for the first nine months of 2006 was impacted by tax payments in the U.S. mainly related to the gain on the divestiture of dialysis clinics in the U.S. Excluding this impact, the effective tax rate for the first nine months 2006 was at 40.3%. For the nine months ended September 30, 2007, net income was $520 million, up 35% from the same period in 2006. Net income for the nine months of 2007 increased by 28% compared to the same period 2006 excluding the effects of one-time items in 2006. Net income before one-time items Nine months ended September 30, (in US-$ million)   2007   2006   Growth Net income   520   385   + 35% Cost of restructuring and transformation   -   7     Write-off FME prepaid financing fees       9     Loss from divestiture   -   4     Net income before one-time items   520   405   + 28% For the nine months ended September 30, 2007, earnings per ordinary share rose by 34% to $1.76. The weighted average number of shares outstanding during the nine months 2007 was approximately 295.4 million. Cash Flow Cash from operations for the first nine months of 2007 was $890 million compared to $465 million for the same period in 2006 on a reported basis. Excluding the effects of one-time items, cash from operations was $663 million for nine months of 2006. The increase compared to prior year was mainly due to increased earnings and a reduction in working capital. A total of $364 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the nine months of 2007 was $526 million compared to $192 million in same period in 2006. The underlying Free Cash Flow before acquisitions and the effects of one-time items for the first nine months of 2006 was $390 million. A total of $110 million in cash was used for acquisitions, net of divestitures. Please refer to the attachments for a complete overview on the third quarter and first nine months of 2007 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, 2007, Fresenius Medical Care treated 172,227 patients worldwide, which represents a 7% increase in patients compared to last year. North America provided dialysis treatments for 120,607 patients, an increase of 3%. Including 33 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 122,479. The International segment served 51,620 patients, an increase of 16% over last year. As of September 30, 2007, the Company operated a total of 2,221 clinics worldwide. This is comprised of 1,591 clinics in North America, an increase of 3%, and 630 clinics in the International segment, an increase of 16%. Fresenius Medical Care delivered approximately 19.6 million dialysis treatments worldwide during the first nine months of 2007. This represents an increase of 13% year over year. North America accounted for 13.7 million treatments, an increase of 11%, and the International segment delivered 5.9 million treatments, an increase of 16% over last year. Employees As of September 30, 2007, Fresenius Medical Care had 60,625 employees (full-time equivalents) worldwide compared to 56,803 employees at the end of 2006. The increase of 3,822 employees is primarily due to acquisitions in Asia and continued organic growth in the U.S. Debt/EBITDA Ratio The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 3.44 at the end of the third quarter of 2006 to 2.88 at the end of the third quarter 2007. At the end of 2006, the debt/EBITDA ratio was 3.23. Rating There have been no ratings changes in the third quarter 2007, Standard & Poor’s Ratings Services rates the Company’s corporate credit rating as ‘BB’ with a ‘stable’ outlook. Moody's rates the Company’s corporate credit rating as ‘Ba2’ with a ‘positive’ outlook. Issuance of 10 Year Senior Notes At the beginning of the third quarter 2007, Fresenius Medical Care issued Senior Notes due 2017 in the amount of $500 million. The coupon is 6 7/8%. Proceeds were used to reduce indebtedness under the Company’s senior secured bank credit facility and other, short-term debt. Outlook for 2007 Confirmed The Company confirms its outlook for the full year 2007 and expects to achieve revenue of more than $9.5 billion. This represents an increase of at least 12%. Net income was projected to be in the range of $685 million to $705 million in 2007. Based on the strong performance in the third quarter, the Company now expects the net income to be at the upper end of this guidance. In addition, the Company still expects spending on capital expenditures and acquisitions to be approximately $650 million in 2007. The debt/EBITDA ratio is projected to be below 3.0 by the end of 2007. For 2010, Fresenius Medical Care continues to expect revenue of more than $11.5 billion. Earnings after tax are projected to grow in the low- to mid-teens per year. Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Third quarter performance continues the strong trend of this year and was clearly outstanding considering the temporary US regulatory challenges. The North American segment achieved operating margins at the high end of its target. The International segment continues its strong double-digit revenue growth even during the Summer Quarter. We continued to grow above market in our product business on a worldwide basis. Cash flow from operations was very strong and clearly ahead of our expectations. We are clearly on track to achieve our targets for the current year and for 2010.” Video Webcast Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the third quarter and the first nine months of 2007 on Wednesday, October 31, 2007, at 3.15pm CET / 10.15am EDT. The Company invites investors to view the live webcast of the meeting at the Company’s website www.fmc-ag.com in the "Investor Relations” section. A replay will be available shortly after the meeting. 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 1,500,000 individuals worldwide. Through its network of 2,221 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 172,227 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   Statements of Earnings   September 30,       September 30,     (in US-$ thousands, except share and per share data) 2007   2006 % Change 2007   2006 % Change   (unaudited)   Net revenue Dialysis Care 1,800,771 1,703,866 5.7 % 5,356,669 4,628,064 15.7 % Dialysis Products 625,371 530,459 17.9 % 1,794,357 1,518,623 18.2 % Total net revenue 2,426,142 2,234,325 8.6 % 7,151,026 6,146,687 16.3 %   Cost of revenue 1,588,201 1,483,561 7.1 % 4,691,347 4,088,588 14.7 % Gross profit 837,941 750,764 11.6 % 2,459,679 2,058,099 19.5 % Selling, general and administrative 425,590 391,403 8.7 % 1,263,681 1,096,561 15.2 % Gain on sale of dialysis clinics - (1,258 ) - (40,233 ) Research and development 15,639 11,814 32.4 % 43,546 37,347 16.6 % Operating income (EBIT) 396,712 348,805 13.7 % 1,152,452 964,424 19.5 %   Interest income (8,705 ) (4,497 ) 93.6 % (19,048 ) (14,844 ) 28.3 % Interest expense 103,538 104,071 -0.5 % 300,367 269,914 11.3 % Interest expense, net 94,833 99,574 -4.8 % 281,319 255,070 10.3 % Earnings before income taxes and minority interest 301,879 249,231 21.1 % 871,133 709,354 22.8 % Income tax expense 114,750 105,357 8.9 % 331,097 314,401 5.3 % Minority interest 6,371 4,685 20,320 10,231 Net income 180,758 139,189 29.9 % 519,716 384,722 35.1 %   Operating income (EBIT) 396,712 348,805 13.7 % 1,152,452 964,424 19.5 % Depreciation and amortization 89,368 79,416 12.5 % 259,861 221,258 17.4 % EBITDA 486,080 428,221 13.5 % 1,412,313 1,185,682 19.1 %   Total bad debt expenses 53,127 50,981 152,762 128,829   Earnings per ordinary share $0.61 $0.47 29.3 % $1.76 $1.31 34.4 % Earnings per ordinary ADS $0.61 $0.47 29.3 % $1.76 $1.31 34.4 %   Weighted average number of shares   Ordinary shares 292,062,414 290,888,289 291,721,451 290,367,524 Preference shares 3,747,548 3,650,988 3,728,265 3,548,433   Percentages of revenue Cost of revenue 65.5 % 66.4 % 65.6 % 66.5 % Gross profit 34.5 % 33.6 % 34.4 % 33.5 % Selling, general and administrative 17.5 % 17.5 % 17.7 % 17.8 % Gain on sale of dialysis clinics - -0.1 % - -0.7 % Research and development 0.6 % 0.5 % 0.6 % 0.6 % Operating income (EBIT) 16.4 % 15.6 % 16.1 % 15.7 % Interest expense, net 3.9 % 4.5 % 3.9 % 4.1 % Earnings before income taxes and minority interest 12.4 % 11.2 % 12.2 % 11.5 % Income tax expense 4.7 % 4.7 % 4.6 % 5.1 % Minority interest 0.3 % 0.2 % 0.3 % 0.2 % Net income 7.5 % 6.2 % 7.3 % 6.3 %   EBITDA   20.0 %   19.2 %       19.7 %   19.3 %     Fresenius Medical Care Three Months Ended     Nine Months Ended   Segment and Other Information September 30,       September 30,     (in US-$ million) 2007   2006 % Change 2007   2006 % Change (unaudited)   Net revenue North America 1,660 1,613 2.9 % 4,957 4,367 13.5 % International 766 621 23.3 % 2,194 1,780 23.3 % Total net revenue 2,426 2,234 8.6 % 7,151 6,147 16.3 %   Operating income (EBIT) North America 283 257 10.0 % 826 704 17.3 % International 135 113 19.3 % 386 318 21.4 % Corporate (21 ) (21 ) -1.6 % (60 ) (58 ) 3.2 % Total operating income (EBIT) 397 349 13.7 % 1,152 964 19.5 %   Operating income in percentage of revenue   North America 17.0 % 15.9 % 16.7 % 16.1 % International 17.6 % 18.2 % 17.6 % 17.8 % Total 16.4 % 15.6 % 16.1 % 15.7 %   Excluding one-time items1 Operating income (EBIT) North America 283 263 7.6 % 826 674 22.6 % International 135 113 19.3 % 386 318 21.4 % Corporate (21 ) (21 ) -0.8 % (60 ) (56 ) 6.5 % Total operating income (EBIT) 397 355 11.8 % 1,152 936 23.2 %   Operating income in percentage of revenue North America 17.0 % 16.3 % 16.7 % 15.4 % International 17.6 % 18.2 % 17.6 % 17.8 % Total 16.4 % 15.9 % 16.1 % 15.2 %     Employees Full-time equivalents (Sep. 30 compared to Dec. 31)         60,625     56,803         1One-time costs associated with the transformation of legal form, restructuring costs and the gain on FTC mandated sale of clinics in 2006. Fresenius Medical Care             Reconciliation of non US-GAAP financial measures to the most directly comparable US-GAAP financial measures   Three Months Ended Nine Months Ended   September 30,       September 30,     (in US-$ million) 2007 2006 % Change 2007 2006 % Change (unaudited)   Operating performance excluding one-time items1   Operating income (EBIT) 397 349 14 % 1,152 964 19 % One-time items2 - 6 - (28 ) Operating income (EBIT) excluding one-time items1   397 355 12 % 1,152 936 23 % Percent of revenue 16.4 % 15.9 % 16.1 % 15.2 %   Net income 181 139 30 % 520 385 35 % One-time items2 - 4 - 20 Net income excluding one-time items1   181 143 27 % 520 405 28 %   Segment information North America Net revenue 1,660 1,613 Costs of revenue and research and development   1,102 1,099 Selling, general and administrative 275 258 Costs of revenue and operating expenses   1,377 1,357 Gain on sale of dialysis clinics - (1 ) Operating income (EBIT) 283 257 One-time items2 - 6 Operating income (EBIT) excluding one-time items1 283 263 Percent of revenue 17.0 % 16.3 %   Dialysis Products revenue incl. and excl. internal sales   North America Dialysis Products revenue incl. internal sales   297 268 less internal sales (130 ) (127 ) Dialysis Products external sales 167 141 International Dialysis Products revenue incl. internal sales   524 439 less internal sales (65 ) (50 ) Dialysis Products external sales 459 389   Reconciliation of cash flow from operating activities to EBITDA3   Total EBITDA 1,412 1,186 Interest expense, net (281 ) (255 ) Income tax expense (331 ) (314 ) Change in working capital and other non cash items   90 (152 ) Net cash provided by operating activities   890 465   Annualized EBITDA4 Operating income (EBIT) last twelve months   1,533 1,332 Depreciation and amortization last twelve months   347 289 Non cash charges 37 26 Annualized EBITDA               1,917     1,647         1 These non US-GAAP financial measures are provided to assist readers in evaluation of Fresenius Medical Care´s underlying operating performance. 2 One-time costs associated with the transformation of legal form, restructuring costs, the gain on FTC mandated sale of clinics and the write-off of deferred financing costs related to the 2003 senior credit facility in 2006 as applicable. 3 EBITDA is the basis for determining compliance with certain covenants in Fresenius Medical Care's long-term debt instruments. 4 EBITDA 2007: Excluding restructuring costs and in-process R&D. EBITDA 2006: Pro forma numbers including RCG, before FTC mandated divestitures, excluding one-time costs for the acquisition. Fresenius Medical Care   September 30,   December 31, Balance Sheet   (unaudited)   (audited) (in US-$ million) 2007 2006   Assets Current assets 3,760 3,412 Intangible assets 7,711 7,554 Other non-current assets 2,291 2,079 Total assets 13,762 13,045   Shareholders' equity and liabilities Current liabilities 2,923 2,376 Long-term liabilities 5,511 5,799 Shareholders' equity 5,328 4,870 Total shareholders' equity and liabilities 13,762 13,045   Equity/assets ratio: 39 % 37 %     Debt Short-term borrowings 76 331 Short-term borrowings from related parties 46 5 Current portion of long-term debt and capital lease obligations 46 160 Current portion of Trust Preferred Securities 665 - Long-term debt and capital lease obligations, less current portion 4,032 3,829 Trust Preferred Securities 648 1,254 Total debt   5,513     5,579   Fresenius Medical Care     Cash Flow Statement   2007   2006 Nine Months Ended September 30, (in US-$ million) (unaudited)   Operating activities Net income 520 385 Depreciation / amortization 260 221 Change in working capital and other non cash items 110 (66 )(a) Net tax payments related to clinic divestitures and RCG acquisition - (75 ) Cash Flow from operating activities 890 465   Investing activities Purchases of property, plant and equipment (385 ) (288 ) Proceeds from sale of property, plant and equipment 21 15 Capital expenditures, net (364 ) (273 ) Free Cash Flow 526 192   Acquisitions, net of cash acquired (140 ) (4,189 ) Proceeds from divestitures 30 507 Free Cash Flow after investing activities 416 3,490   Financing activities Change in accounts receivable securitization program (266 ) 193 Change in intercompany debt 39 10 Change in other debt 54 3,115 Proceeds from exercise of stock options 33 48 Proceeds from conversion of preference shares into ordinary shares   - 307 Change in minority interest (15 ) (7 ) Dividends paid (188 ) (154 ) Cash Flow from financing activities (343 ) 3,512   Effects of exchange rates on cash 6 21 Net increase in cash 79 43   Cash at beginning of period 159 85 Cash at end of period   238     128     (a) Including $24 million of payments related to the RCG acquisition and $99 million related to tax payments for prior years. Fresenius Medical Care         Quarterly Performance Scorecard - Revenue                 Three months ended September 30, 2007 cc 2006 cc (in US-$ thousands, except per-treatment revenue)   North America Net revenue 1,660,462 1,613,083 Growth year-over-year 2.9 % 38.1 %   Dialysis Care 1,493,793 1,472,107 Growth year-over-year 1.5 % 42.0 % U.S. per treatment 327 324 Per treatment 323 321 Sequential growth -0.2 % 2.2 % Growth year-over-year 0.6 % 8.5 %   Dialysis Products incl. internal sales 296,897 268,012 Growth year-over-year 10.8 % 19.5 % External sales 166,669 140,976 Growth year-over-year 18.2 % 7.2 %   International Net revenue 765,681 621,243 Growth year-over-year 23.2 % 14.4 % 13.2 % 10.9 %   Dialysis Care 306,978 231,759 Growth year-over-year 32.5 % 22.8 % 10.2 % 9.3 % Per treatment 153 142 132 131 Sequential growth 3.0 % 0.3 % Growth year-over-year 15.9 % 7.4 % 1.8 % 1.0 %   Dialysis Products incl. internal sales 523,856 438,575 Growth year-over-year 19.4 % 10.6 % 12.4 % 9.4 % External sales 458,704 389,484 Growth year-over-year   17.8 %   9.4 %   15.1 %   11.8 %   cc = at constant exchange rates Fresenius Medical Care   Quarterly Performance Scorecard - Dialysis Care Volume     Three months ended September 30,   2007 2006   North America Number of treatments 4,621,343 4,498,590 Treatments per day 59,248 56,940 Per day sequential growth 0.6 % -0.5 % Per day year-over-year growth 4.1 % 31.1 % of which: - Acquisition RCG - 32.9 % - FTC divestitures - -3.2 % - Other acquisitions 0.7 % 0.7 % - Same market growth year-over-year 3.0 % 1.8 % - Adjustments for closed/sold facilities, yield and other 0.4 % -1.1 %   International Number of treatments 2,003,872 1,752,795 Same market growth year-over-year   4.9 %   7.1 %     Fresenius Medical Care Quarterly Performance Scorecard - Expenses         Three months ended September 30, 2007 2006   North America Costs of revenue and operating expenses Percent of revenue1 83.0 % 84.2 % Gain on sale of dialysis clinics Percent of revenue - -0.1 % Selling, general and administrative Percent of revenue1 16.5 % 16.0 % Bad debt expenses Percent of revenue 3.0 % 3.1 % Dialysis Care operating expenses/Treatment (in US-$) 268 268 Sequential growth 0.2 % 1.9 % Growth year-over-year -0.1 % 5.7 %   Total Group Costs of revenue and operating expenses Percent of revenue2 83.6 % 84.4 % Gain on sale of dialysis clinics Percent of revenue - -0.1 % Selling, general and administrative Percent of revenue2 17.5 % 17.5 % Effective tax rate   38.0 %   42.3 %   1 Includes 0.4% RCG restructuring costs in 2006. 2 Includes 0.3% RCG restructuring costs in 2006. Fresenius Medical Care Quarterly Performance Scorecard - Cash Flow/Investing Activities Three months ended September 30,   2007   2006 (in US-$ thousands, except number of de novos)   Total Group Operating Cash Flow 382,472 152,566 Percent of revenue 15.8 % 6.8 %   Free Cash Flow before acquisitions 258,653 40,168 Percent of revenue 10.7 % 1.8 %   Acquisitions, net 25,672 9,638   Proceeds from divestitures 2,045 1,307   Capital expenditures, net 123,819 112,397 Percent of revenue 5.1 % 5.0 %   Maintenance 53,193 43,174 Percent of revenue 2.2 % 1.9 %   Growth 70,626 69,223 Percent of revenue 2.9 % 3.1 %   Number of de novos 23 16 North America 14 9 International   9     7       Fresenius Medical Care Quarterly Performance Scorecard - Balance Sheet         Three months ended September 30, 2007 2006   Total Group Debt (in US-$ million) 5,513 5,672 Debt/EBITDA 2.9 3.4   North America Days sales outstanding 57 58 Sequential development -1.7 % -1.7 % Year-over-year development -1.7 % -7.9 %   International Days sales outstanding 114 122 Sequential development 1.8 % 2.5 % Year-over-year development   -6.6 %   -   Fresenius Medical Care     Quarterly Performance Scorecard         Three months ended September 30, 2007 20061   Clinical Performance North America (U.S.) Single Pool Kt/v > 1.2 95 % 95 % Hemoglobin >or = 11g/dl 80 % 81 % Albumin >or = 3.5 g/dl 2 80 % 80 % Hospitalization days per patient 3 (12 months ending Sep. 30,) 11.1 11.5     Demographics North America (U.S.) Average age (yr) 62 61 Average time on dialysis (yr) 3.5 3.5 Average body weight (kg) 78 77 Prevalence of diabetes   53 %   52 %   1 Q3 2006 data: without former RCG facilities 2 International standard BCR CRM470 3 Hospitalization data without former RCG facilities