Filed by Fresenius Kabi Pharmaceuticals Holding, Inc.
pursuant to Rule 425 under the Securities Act of 1933
 
Subject Company:  APP Pharmaceuticals, Inc.
Commission File No.:  333-152690
 
Morgan Stanley Global Healthcare
Unplugged Conference
September 9, 2008
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 2
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.
ADDITIONAL INFORMATION
In connection with Fresenius Kabi Pharmaceuticals Holding, Inc.'s proposed acquisition of APP
Pharmaceuticals, Inc., Fresenius Kabi Pharmaceuticals Holding, Inc. and APP Pharmaceuticals,
Inc. have filed relevant materials with the SEC, including a registration statement that contains
a joint prospectus and information statement. Investors and security holders are urged to read
these documents and any other relevant documents filed with the SEC, as well as any
amendments or supplements to those documents, because they contain important information.
Investors and security holders may obtain these documents free of charge at the SEC's website
at www.sec.gov.   Investors and security holders are urged to read the joint information
statement/prospectus and the other relevant materials before making any investment decision
with respect to the proposed acquisition.
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 3
Fresenius
Biotech
Fresenius
Helios
Hospital Operations
Fresenius
Vamed
Engineering and
Services for
Health Care Facilities
Fresenius
Medical Care
Dialysis Equipment
and Services
Fresenius
Kabi
Infusion and Nutrition
Therapies
Oncology and
Immunology Therapies
-   Listed in Frankfurt (MDAX)
-   2007 revenue: € 11.4 billion
-   Active in ~100 countries
Achieving Profitable Growth in Attractive Health Care
Segments
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 4
Growth at constant
currency rates
Growth at actual
currency rates
H1/08
Sales
EBIT
Net income
€ 5,710 m
€ 781 m
€ 212 m
9 %
8 %
14 %
2 %
0 %
9 %
Fresenius Group: Financial Results
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 5
H1/08
US $ 5,177 m
10 %
Fresenius
Medical Care
US $ 818 m
8 %
Fresenius
Kabi
€ 1,121 m
14 %
€ 181 m
14 %
Fresenius
Helios
€ 1,040 m
17 %
€ 83 m
22 %
Fresenius
Vamed
€ 177 m
11 %
€ 9 m
0 %
Fresenius Group:
Double-digit Sales Growth in all Business Segments
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 6
Fresenius Kabi: Update H1/08
-   Excellent organic sales growth of 10 %
-   Performance of 2007 acquisitions fully
  in line with our expectations
-   Dabur Pharma: Successful closing of
  transaction
-   APP Pharmaceuticals - outstanding
  opportunity for Fresenius Kabi in the
  U.S.
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 7
-   APP Pharmaceuticals - a leading U.S. I.V. generic drugs company
-   Dedicated to the highest quality and medical excellence
-   Successful, well-established company enhancing Fresenius Kabi‘s
  profitability
-   Platform for further growth in the U.S. for Fresenius Kabi‘s existing
  product portfolio
-   Outstanding opportunity to establish a leading global position in I.V.
  generic drugs
-   Experienced and successful management team
-   Transaction closing imminent; financing secured
APP Pharmaceuticals - Acquisition Highlights
 
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 8
* Primarily for oncological products
Raw
Materials
Fresenius
Kabi
Oncology
Other I.V.
Drugs
Dabur
APP
Labesfal
Adminis-
tration
Medical
Devices,
Dis-
posables
Filaxis
APP
APP Provides an Excellent Strategic Fit to
Fresenius Kabi‘s I.V. Drug Business
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 9
-   Strong organic revenue growth of
  5 %*
-   1.8 % EBIT margin progression in
  established clinics
-   Smooth integration of Krefeld/Hüls
  hospitals
  -   ~9 % increase in hospital admissions
  -   Krefeld hospital construction plans
  finalized; investment of ~ € 180 m
    until 2015
* growth rate on a like for like basis
New Krefeld hospital
Fresenius Helios: Update H1/08
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 10
-   H1/08 financial results fully on track to
  meet 2008 guidance
-   Strong order intake in H1/08
  -   € 25 m awarded for the hospital
  extension in Oberndorf/Austria
  - € 8 m for medical technical
  equipment supply for 25 hospitals
  in Sri Lanka
-   Hermed acquisition on track - perfect
  fit to strengthen the German service
  business
Krasnodar hospital (model), Russia
Fresenius Vamed: Update H1/08
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 11
  Fresenius Medical Care   Sales   > US$ 10.4 bn
    Net income   US$ 805 - 825 m
  Fresenius Kabi   Sales growth (cc)   12 - 15 %
    EBIT margin   ~16.5 %
 
  Fresenius Helios   Sales   > € 2,050 m
    EBIT   € 160 - 170 m
   
  Fresenius Vamed   Sales growth   5 - 10 %
    EBIT growth   5 - 10 %
   
  Fresenius Biotech   EBIT   ~ € -50 m
   
Fresenius Business Segments: Financial Outlook 2008
Fully Confirmed
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 12
Revenue growth
in constant currency
8 - 10 %
Net income growth
in constant currency
10 - 15 %
Guidance
Capex
~ € 750 m
Fresenius Group: Outlook 2008 Fully Confirmed
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 13
Attachments
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 14
Sales   2,912   5,710   2 %   9 %   Organic growth: 6 %
EBIT     404   781   0 %   8 %   Margin: 13.7 %
Interest result     -83   -167   10 %   2 %   Positive currency  
          impact, lower average
          rates
Taxes     -111   -214   0 %   -8 %   Tax rate: 34.9 %
Net income     112   212     9 %     14 %  
      actual   constant  
      rates   rates
Fresenius Group: Profit and Loss Statement
€m   Q2/08   H1/08   H1/08 YoY   Remarks
         
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 15
Fresenius Group: Cash Flow
€m   Q2/08   H1/08   YoY   Remarks
Cash flow   324   624     7 %     Strong earnings growth
Change in working capital    -121   -143     --
Operating Cash flow   203   481     -13 %   Margin: 8.4 %
Capex (net)   -171   -332   -13 %   On track for full-year
        guidance
Cash flow   32   149     -42 %
(bf. acquisitions and dividends)    
Acquisitions (net)   -65   -224   -37 %
Dividends   -213   -218   -16 %  
Free Cash flow   -246   -293   --
(after acquisitions and dividends)
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 16
    June 30,   Dec 31,
    2008   2007
Net debt/EBITDA
3.6
3.0
2.8
2.6
2.4
2.2
2.0
1.8
3.4
3.2
Debt (€m)   5,805   5,699
Net debt (€m)   5,464   5,338
   
Net debt/EBITDA   2.7   2.6
EBITDA/Interest   6.0   5.5
 
Fresenius Group: Debt and Interest Ratios
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 17
APP Acquisition Financing: Execution Fully on Track
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 18
€m   H1/08   H1/07   Change   Organic
        Growth
Germany   213   213   0 %   2 %
Europe
ex Germany     536   461   16 %    7 %
Asia-Pacific     180   145   24 %   27 %
Latin America     84   66   27 %    9 %
RoW     108   101    7 %   11 %
Total sales   1,121   986   14 %   10 %
Fresenius Kabi: Organic Sales Growth of 10 %
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 19
          Organic
€m     H1/08   H1/07   Growth
Sales   1,121   986   10 %
By Product Segment:
  Infusion Therapy   589   529    6 %
  Clinical Nutrition   461   398   13 %
   
  Transfusion Technology   71   59   19 %
Fresenius Kabi: Strong Sales Growth in H1/2008
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 20
€m     H1/08   H1/07   Growth
Total EBIT   181   159   14 %
Margin     16.1 %   16.1 %
By Region:
  Europe   162   145   12 %
  Margin   21.6 %   21.5 %
  International   60   50   20 %
  Margin   16.1 %   16.0 %
  Corporate and Corporate R&D   -41   -36   -14 %
Fresenius Kabi: Strong EBIT Growth
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 21
  €m   H1/08   H1/07   Growth
  Total sales   1,040   890   17 %
  -   established clinic portfolio   945   890   5 % *
  -   acquisitions (consolidation < 1 yr)   95   0    
* growth rate on a like for like basis
Fresenius Helios: Outstanding Sales Growth
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 22
  €m   H1/08   H1/07   Growth
  Total EBIT   83   68   22 %
  Margin   8.0 %   7.6 %
  -   established clinic portfolio   89   68  
    Margin   9.4 %   7.6 %
  -   acquisitions (consolidation < 1 yr)   -6   0
Fresenius Helios: Excellent Earnings Development
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 23
  H1/08   H1/07   Change
 
* Clinics in Germany   ** Dec 31, 2007
No. of hospitals**     60   60  
-   Acute clinics    40   40    
-   Postacute care clinics   20   20  
No. of beds**     17,460   17,192   2 %  
-   Acute clinics   13,699    13,333   3 %  
-   Postacute care clinics   3,761   3,859   -3 %
Admissions*    
-   Acute care (inpatient)   255,924   211,524   21 %  
Occupancy*  
-   Postacute care   79 %   81 %    
Average length of stay (days)*
-   Acute care**   7.1   7.1    
-   Postacute care**   30.7   31.9
Fresenius Helios: Performance Indicators
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 24
  €m   H1/08   H1/07   Change
   
  Total sales   177   160   11 %  
  By Division:
      Project business   99   87   14 %  
      Service business   78   73       7 %  
* project business only   ** Dec 31, 2007
  Order intake *   170   84   102 %
   
  Order backlog *   573   510   12 %  
**
Fresenius Vamed: Strong Sales Development
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 25
  €m   H1/08   H1/07   Change
  Total EBIT   9   9   0 %
  Margin   5.1 %   5.6 %
  Net income   9   8   13 %
Fresenius Vamed: EBIT Development According to Plan
 
 
 
Morgan Stanley Global Healthcare Unplugged Conference, Fresenius SE, Investor Relations © Copyright, September 9, 2008   Page 26
4.11.2008   Report on 1 st -3 rd quarters 2008
Contact
Birgit Grund   SVP Investor Relations Fresenius SE
Telephone:   +49 6172 608-2485
e-mail:     Birgit.Grund@fresenius.com
For further information and current news: http://www.fresenius.com
Financial Calendar
 
 
 
App Pharmaceuticals (MM) (NASDAQ:APPX)
Historical Stock Chart
Von Mai 2024 bis Jun 2024 Click Here for more App Pharmaceuticals (MM) Charts.
App Pharmaceuticals (MM) (NASDAQ:APPX)
Historical Stock Chart
Von Jun 2023 bis Jun 2024 Click Here for more App Pharmaceuticals (MM) Charts.