Outlook

We want to continuously grow internationally, boost sales of our dialysis products, and provide dialysis care to an increasing number of patients. Our outlook for 2008 defines the following developments:


US-$ in millions
Guidance

Net Revenues
> $ 10,400

Net Income
$ 805 – 825



Leverage ratio (Debt/EBITDA)
< 2.8



Capital Expenditure
~ $ 650 – 750

Acquisitions
~ $ 150 – 250

Dividends


We will continue to pursue a long-term profit-oriented dividend policy and increased the dividend for the eleventh consecutive year since the Company’s foundation in 1996. During this period, the dividend per ordinary share rose from € 0.17 to € 0.54 for the fiscal year 2007. This represents an annual dividend growth of about 12%. We intend to continue this development in 2008 and 2009. In these two years, the dividend payout ratio should remain at the previous year’s level of nearly one third of net income.

Employees


We anticipate that by the end of 2008, we will have more than 65,000 employees. That would mean an increase of approximately 6% compared to the end of 2007. In 2009, we expect our workforce to grow to more than 68,000. Revenue should again rise at a higher rate than the number of employees.

Long-Term Revenue and Earnings Outlook until 2010


With GOAL 10, which we announced back in 2005, we intend to achieve revenue of about $11.5 billion in 2010. Profitability should grow stronger than revenue, with the net income expected to increase by more than 10% a year. Our aim is to attain a global market share of 18%.


GOAL10 objectives
GOAL10

2007

2006

2005

2004

Revenue (in $ millions)
~11,500

9,720

8,499

6,772

6,228

Annual revenue growth at constant currency
~7-9%

12%

25%

8%

10%

Share of dialysis
market 1
~18%

16.8%

15.5%

12.9%

~12%

Market volume 1
($ in billions)
~67

~58

~55

~52.5

~50

Annual net income
growth 2
>10%

25%

24%

17%

21%
1 Company esimates
2 2005 excluding one-time effects, 2006 excluding one-time effects and effects from SFAS 123R and 2007 excluding one-time effects


Updated: September 24, 2008
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