Comparison of the actual business results with the forecasts

Fresenius achieved or exceeded all the targets for 2010 announced in February 2010 when it published its annual financial statements for 2009. We also achieved or exceeded the increased guidance announced in the further course of the year. This is shown in the summary below. We had assumed that strong demand for our products and services would continue despite ongoing cost-containment efforts in the health care sector. This proved to be the case.

The achieved sales growth of 8% in constant currency was fully in line with our forecast range of 8 to 9%. The forecast growth in net income1 of about 20% in constant currency was exceeded with growth of 23%. All sales and earnings for the business segments were also fully achieved or exceeded.

Fresenius invested €758 million in property, plant and equipment in 2010, equivalent to about 5% of Group sales. That was well in line with the budgeted level of about 5% due to the cautious investment policy pursued by the business segments.

ACHIEVED GROUP TARGETS 2010


Group Targets for 2010 announced in February 2010 Increased guidance announced in August 2010 Increased guidance announced in November 2010 Achieved in 2010
1 Net income attributable to Fresenius SE & Co. KGaA adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals. Both are non-cash items.
Sales (growth, in constant currency) 7–9%   8–9% 8%
Net income (growth, in constant currency) 1 8–10% 10–15% ~ 20% 23%
Capital expenditure on property, plant and equipment (% of Group sales) ~ 5%     5%

Group Targets for 2010 announced in February 2010 Increased guidance announced in August 2010 Increased guidance announced in November 2010 Achieved in 2010
1 Net income attributable to Fresenius SE & Co. KGaA adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals. Both are non-cash items.
Sales (growth, in constant currency) 7–9%   8–9% 8%
Net income (growth, in constant currency) 1 8–10% 10–15% ~ 20% 23%
Capital expenditure on property, plant and equipment (% of Group sales) ~ 5%     5%

We also clearly exceeded our guidance for operating cash flow with a cash flow rate of 12%. We had forecast a cash flow rate at a high single-digit percentage rate of sales.

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