Slide 1: Getinge Capital Markets Day 2011
GETINGE CAPITAL MARKETS DAY 2011 Johan Malmquist, CEO Stockholm 28 January 2011
Slide 2: Welcome to Getinge's Capital Markets Day 2011
Welcome to Getinge’s Capital Markets Day 2011 Today’s programme 13:00 Getinge Group Johan Malmquist, CEO Getinge Group Financial Review Ulf Grunander, CFO Q&A 14:30 Coffee break Busines Area Medical Systems Heribert Ballhaus, Executive Vice President Business Area Medical Systems Q&A Business Area E
Slide 3: Presentation Content
PRESENTATION CONTENT • Corporate Overview • Financials • Focus Areas • Outlook
Slide 4: Corporate Overview
GETINGE GROUP CORPORATE OVERVIEW
Slide 5: Getinge Group 2010
Getinge Group 2010 Medical Systems Extended Care Infection Control Revenues: SEK 22 billion Associates: 12 200 Sales companies: 100 Manufacturing sites: 26 5 GETINGE GROUP 2011.01.28
Slide 6: Getinge Group breakdown of revenues 2010
Getinge Group breakdown of revenues 2010 IC 23% 43% 45% 26% RoW recurring Western 55% MS 50% Europe revenues Capital eqpm 31% North EC 27% America By business area By geography By product category GETINGE GROUP 2011.01.28
Slide 7: Competitive business benefiting from healthcare provider market trends
Getinge has built a competitive business that benefits from the current trend in the healthcare provider market. • Privatisation and market testing Consolidation • Activity and reimbursement Process focus • Outsourcing of non clinical activities Partnership with suppliers Size is an increasingly imp
Slide 8: Competitive business supported by a robust strategy
Getinge has built a competitive business supported by a robust strategy: Global leadership Solution provider Customer relationships We strive to be a global no We strive to combine Getinge will strive to 1 or no 2 in the product products and know-how to establish proprietary areas focused. offer inn
Slide 9: Financials
GETINGE GROUP FINANCIALS
Slide 10: 2010 - Consolidated results
2010 - Consolidated results 2010 2009 Change YTD YTD % Order intake 22 406 23 036 -2.7% Net sales, SEK million 22 172 22 816 -2.8% Gross margin 51.3% 49.3% 2.0% EBITA margin* 19.7% 17.2% 2.5% Restructuring and integration costs 180 336 Net financial items -573 -436 Profit before tax 3 116 2 634 18.3
Slide 11: Financials
Financials 2010 2009 YTD YTD Cash conversion, % 80.7% 90.0% Net Debt 13 376 16 071 Equity 13 248 12 562 Equity/assets ratio, % 38.3% 33.9% Net debt/equity ratio, multiple 101.0% 126.3% 11 GETINGE GROUP 2011.01.28
Slide 12: Getinge Group financial targets
Getinge Group financial targets • Pre-tax earnings: Average growth of 15% per year • Long-term organic revenue growth: 5% (market growth) • Mid-term organic revenue growth 2% above market growth • Cash conversion: 60-70% of EBITDA • EBITA margin: ~ 20% (under revision) EBITA margin 2009 2010 Target
Slide 13: Focus Areas
GETINGE GROUP FOCUS AREAS
Slide 14: Focus Area: Supply Chain development
Focus Area: Supply Chain development Potential for further EBITA margin expansion through supply chain improvements • Manufacturing footprint: continued plant consolidation. We expect to reduce the number of plants by 6-8 from today’s 26 plants. • Reduced depth of manufacturing. Ongoing outsourcing
Slide 15: Focus Areas: Internationalisation
Focus Areas: Internationalisation Increased exposure to faster growing developing economies will raise Getinge’s overall organic growth rate 2006 2007 2008 2009 2010 Target Revenues, SEK m 2 500 3 700 4 500 4 800 5 700 % of Group revenue 19% 21% 22% 22% 26% 35% Growth rate 32% 46% 22% 8% 17% >10% 15
Slide 16: Internationalisation
Internationalisation From an export-led organisation to a multi-domestic organisation • Continued investment in own sales infrastructure in developing economies. 20 new sales companies established in the past five years outside WE and NA. • Develop new product platform in existing product categories
Slide 17: Focus Areas: Innovation and R/D
Focus Areas: Innovation and R/D • We expect innovation and new product development to make up a bigger part of our future organic growth. 2005 2007 2009 2010 R/D expenses, SEK m 412 648 1 123 1 116 R/D % of revenues 3.5% 3.9% 4.9% 5.0% • Enter/create new markets • Emphasize development of products w
Slide 18: Focus Area: External growth
Focus Area: External growth Size is an increasingly important success factor. External growth will help us to attain both financial and strategic targets. 18 GETINGE GROUP 2011.01.28
Slide 19: External growth
External growth Bolt-on acquisitions in existing product categories Acquisitions of new leading product lines Sterilization no 1 Disinfection no 1 Integrated Infection Control solutions Patient Handling no 1 Hygiene Systems no 1 Wound Care/TS no 2 Integrated solutions for health care IPC/DVT no 1 er
Slide 20: Focus Area: External growth
Focus Area: External growth • Bolt-on acquisitions will add approximately 2% growth per annum and will be focused on new technologies and geographical expansion within existing product categories. • Acquisitions of new and leading product lines that reinforces our capacities as a solution provider i
Slide 21: Outlook
GETINGE GROUP OUTLOOK
Slide 22: Market development 2011
Market development 2011 Total of Cap eqpm / Trend revenues recurring 2011 Comments EC recovering. Western 55% Capital Eqpm FLOW-i, Cardiohelp roll out. Europe 43% 45% Improving sales org. CV. Recurring revenues Roll out EVH. 45% Capital Eqpm Gradual market recovery. North America 31% 55% New CS prod
Slide 23: Outlook 2011
Outlook 2011 Continued good earnings growth • Improving top-line growth 3-5 % (organic) • Contribution from ongoing plant consolidation and efficiency initiatives • Favorable currency hedges compared to 2010 • Declining restructuring costs • Lower cost of debt • Product launch costs will impact EBIT
Slide 24: Getinge Capital Markets day Summary
Getinge Capital Markets day Summary • Well positioned to thrive on current healthcare trends. • Gradual improvement of demand situation. • Rapid expansion of EBITA margin. Still significant potential for further margin expansion through supply-chain developments. • Continuous investments in developi