Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Conference Presentation (November 2017)
40 slides from Getinge Ab Class B's conference presentation, Nov 10, 2017
Slide 1: Arjo spin-off & Getinge targets
Arjo spin-off & Getinge targets Mattias Perjos, President and CEO, Getinge Joacim Lindoff, President and CEO, Arjo November 10, 2017
Slide 2: Agenda
Agenda • The proposal distribution and listing of Arjo • Arjo a brief introduction to the company • Getinge restated financials, new targets and reconfirmed strategy with fine-tunings • Q&A Page 2
Slide 3: Distribution and listing of Arjo
Distribution and listing of Arjo Creating increased shareholder value Overview of the spin-off Why What When Strategic review in Getinge resulted 18 Oct 2016 Announcement in an aim to increase presence in the of spin-off Acute Care Therapies and Surgical 1 Apr 2017 Arjo as an internal Acute Care Sur
Slide 4: Arjo in brief
Arjo in brief November, 10, 2017 Joacim Lindoff, President & CEO Arjo
Slide 5: SEK 7.8 bn in sales and market leading position across most product categories
SEK 7.8 bn in sales and market leading position across most product categories Arjo in essence Net sales of Customers in 7.8 60 6 5 900 SEK billion (2016) countries production sites employees Sales per customer type Sales per geography Sales per revenue type 37% 17% 67% 40% 15% 18% 33% 48% 25% Long
Slide 6: Listing Arjo is about focus
Listing Arjo is about focus Following the strategic direction in Getinge 2015 to integrate its business areas, Getinge gravitated towards the dominant customer segment Acute Care in terms of: • Strategic focus – a standalone Arjo with a dedicated Management and Board of Directors will in addition to
Slide 7: Arjo investment highlights
Arjo investment highlights ✓ Large addressable market driven by favourable trends ✓ Complete Acute- and Long Term Care offering with strong market positions ✓ Global business platform with low operational risk ✓ Proven business model with sustained competitive advantages ✓ Well identified strategic
Slide 8: Arjo is active on a SEK ~65bn global market growing at 4% annually
Arjo is active on a SEK ~65bn global market growing at 4% annually Addressable market Comments ~SEK 65bn ~SEK 80bn CAGR(*) ► Arjo plays in a market that Market size 2017 Market size 2022 31 is expected to grow at 4% ~4% annually up until 2022 26 ► Market growth largely different between 23 22 23 geo
Slide 9: Complete offering for care of patients with reduced mobility and age-related health challenges
Complete offering for care of patients with reduced mobility and age-related health challenges Patient Handling Hygiene Medical Beds Lifts, sliding sheets, slings Bathing and showering Ergonomically designed for and flites systems, chemicals and liquids acute care and long term care 21% of sales 201
Slide 10: Well invested asset base with state of the art production facilities
Well invested asset base with state of the art production facilities Cardiff, Wales, UK Employees 158 Product categories Monitoring and Doppler diagnostics equipment Magog, Canada Poznan, Poland Employees 143 Employees 670 Product category Patient handling Product categories Hospital beds, patient h
Slide 11: Arjo strategic intent
Arjo strategic intent To be recognized globally as the most trusted partner in enabling care and improving quality of life for people with reduced mobility and age-related health challenges, we will… Become the Maintain market Become market preferred leadership in leader in Long- solutions Acute Car
Slide 12: We will transform revenue composition in 3 ways
We will transform revenue composition in 3 ways … …resulting in a sustained increase in profitability and robustness ILLUSTRATIVE Transformation of: Customer Segment Split Geographic Split Revenue Type Acute Care Western Europe Service Capital Long Term Care North America Consumables Rental Rest of
Slide 13: Mid-term financial targets - aligned with Arjo's 2020 plan
Mid-term financial targets - aligned with Arjo’s 2020 plan Organic sales CAGR: 2-4% Arjo’s mid-term EBITDA CAGR: >10% financial targets Cash conversion: >70% Dividend Policy: The aim is for the dividend to correspond to 30-50 percent of net income after tax. Page 13
Slide 14: A dedicated and experienced management team
A dedicated and experienced management team… Joacim Lindoff Jonas Lindqvist Kornelia Rasmussen Christian Stentoft Marion Gullstrand President & CEO CFO Marketing Communication & PR Corporate Development & Projects Human Resources & CSR Katarzyna Bobrow Mikael Persson Jan Andersson Paul Lyon Anne Sig
Slide 15: Arjo as a stand-alone company
Arjo as a stand-alone company Reconciliation of historical financials ILLUSTRATIVE Commentary 1• The base line for Arjo’s financials is the information that 1 Extended Care / PPAC net sales has historically been presented as the business segment Extended Care, and later PPAC, within the Getinge 2• T
Slide 16: Snapshot financials
Snapshot financials Net sales and EBITDA margin Commentary Net sales EBITDA margin • Recent organic growth decline and margin ~60% Recurring revenue providing volatility driven by a combination of top-line visibility factors… 8 115 − Challenging rental market 7 568 7 808 7 794 − Lower volumes within
Slide 17: Arjo investment highlights
Arjo investment highlights ✓ Large addressable market driven by favourable trends ✓ Complete Acute- and Long Term Care offering with strong market positions ✓ Global business platform with low operational risk ✓ Proven business model with sustained competitive advantages ✓ Well identified strategic
Slide 18: Getinge after the spin-off of Arjo
Getinge after the spin-off of Arjo Mattias Perjos, President and CEO Page 18
Slide 19: Getinge 2018 leading positions in well defined segments
Getinge 2018 leading positions in well defined segments Enabling better healthcare to more patients with the same resources Products used in The value we bring to 170 BSEK CSSD* patients and hospitals Addressable market Improving Improving Cath Operating Endo outcomes and efficiency and 2-4% Lab Roo
Slide 20: The value we provide to hospitals
The value we provide to hospitals Solutions for better clinical outcome and rapid recovery as well as improved efficiency and reduced risk of infection Enabling Improving + = Improving better healthcare outcomes and efficiency and to more patients reducing length minimizing HAI* with the same of sta
Slide 21: Getinge in financials after Spin-off of Arjo
Getinge in financials after Spin-off of Arjo Share of Net Sales, EBIT, Total Assets & Operating Cash Flow (pro forma) R12 September 2017 Share of Net Sales Share of EBIT Share of assets Share of operating R12 R12 Sep 2017 Cash Flow R12 Getinge Arjo Getinge Arjo Getinge Arjo Getinge Arjo Approximatel
Slide 22: Key financial figures for Getinge excl Arjo (pro forma)
Key financial figures for Getinge excl Arjo (pro forma) Jan-Sep 2017 Income statement Key figures September 30, 2017, R12 (SEK M) Getinge Getinge excl Arjo September 30, 2017, R12 Getinge Getinge excl Arjo Net sales 30,124 22,558 EBITA 11), SEK M 4,311 3,420 EBITA 1 Margin, % 14.3 15.2 Gross Profit
Slide 23: Getinge after the Spin-off of Arjo
Getinge after the Spin-off of Arjo A well balanced business with a high proportion of recurring revenue (R12, September 30, 2017) Sales Regions Business Area Revenue Split EMEA 40% Surgical Workflows 46% Capital equipment 42% Americas 40% Acute Care Therapies 54% Recurring items 58% APAC 20% Page 23
Slide 24: Strategy: reconfirmation & fine-tuning
Strategy: reconfirmation & fine-tuning Mattias Perjos, President and CEO Page 24
Slide 25: A reconfirmation of the strategy
A reconfirmation of the strategy Strategic priorities going forward Strengthen Drive Expand our Strategic priorities our offering in presence to operational and prioritized commercial capture growth segments excellence Enabler Continue to build a global organization with high engagement Page 25
Slide 26: Estimated market growth: 2-4% in addressable segments
Estimated market growth: 2-4%* in addressable segments Active in multiple sub-segments with different growth dynamics Acute Care Therapies growth in addressable sub-segments Share Growth Sub segment Net Sales** estimate Products Global addressable market: 170 BSEK Critical Care 25% 4-5% Ventilators,
Slide 27: Strategic focus going forward our offering
Strategic focus going forward our offering Based on prioritized segments and regions Market segmentation in two dimensions 1. Depth of engagement based on our current position and the attractiveness going forward 2. Geographical based on income VHI HI M&LI Depth of engagement Geographical Global (GL
Slide 28: Creating better outcome in healthcare
Creating better outcome in healthcare our offering global positions and future priorities * *Incl admission/Cathl ab Page 28
Slide 29: Creating better outcome in healthcare
Creating better outcome in healthcare our offering global positions and future priorities * *Incl admission/Cath lab Page 29
Slide 30: Regional outlook and expansion
Regional outlook and expansion Strongest growth expected outside EMEA No significant differences in growth expectations Deeper penetration with existing products geographically between regions in addressable market segments and enter selective areas of the value segment Premium segment present Addre
Slide 31: Already accomplished: Organizational adjustments aligning with our ambitions
Already accomplished: Organizational adjustments aligning with our ambitions Clarity, accountability and decisions close to the customer synergies will still be able to carve out Production moved Simplified sales to Business Areas Innovation organization Accountability and Moving closer Capital Cust
Slide 32: Intention to launch a new business area January 1st 2018: Life Science
Intention to launch a new business area January 1st 2018: Life Science Adjusting to the different characteristics within Life Science Getinge Structure Rationale for establishment Getinge excl. Arjo New structure Jan 2018 of Life science business area Acute Care Therapies Acute Care Still the same b
Slide 33: New financial targets
New financial targets Mattias Perjos, President and CEO Page 33
Slide 34: Financial Targets
Financial Targets Growth in organic net sales is expected to be ramped up gradually in 2018 Dividend Organic Earnings policy net sales Per Share 2-4% 2-4% annual average >10% 30-50% growth average growth average growth of net income Page 34
Slide 35: Summary I(II)
Summary I(II) Arjo distribution and listing Key dates for Arjo distribution and listing Strategic intent • December 4: EGM to decide on spin off • Maintain market leadership in Acute Care • December 7: First day of trading in Getinge share • Become market leader in Long Term Care excl right to Arjo
Slide 36: Summary II(II)
Summary II(II) Getinge financial targets and strategy Revised financial targets Enablers • Average organic growth in net sales: 2-4% • Organizational adjustments in production and sales • Average EPS growth: >10% organization accomplished • Dividend policy: 30-50 % of net income • Bringing clarity,
Slide 37: Q&A
Q&A anes GETINGE x
Slide 38: Thank you
Thank you on GETINGE Xe
Slide 39: Forward looking information
Forward looking information This document contains forward- management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could var
Slide 40: GETINGE
Se A GETINGE PASSION FOR LIFE