Slide 1: Capital Market Update Getinge 2024-2028
Capital Market Update Getinge 2024-2028 Mattias Perjos, CEO Agneta Palmér, CFO
Slide 2: FDA Letter, May 8 – what has happened?
FDA Letter, May 8 – what has happened? FDA sent a letter to US healthcare providers, with regards to Cardiohelp, Cardiosave and HLS No new field actions Transition away from Cardiosave, If not any alternative However, the letter were referred to in recommends: Cardiohelp, and HLS products where avai
Slide 3: What do we do about it – short term?
What do we do about it – short term? In alignment with FDA recommendations For the US market • Suspend Cardiohelp and Cardiosave promotional activities until regulatory and safety concerns are addressed and improvements receive Will most likely have a approval negative impact, but too early • Sales
Slide 4: What do we do about it – long term?
What do we do about it – long term? Progress in ongoing remediation activities and activities in plan Substantial reduction of quality record Focus on product Filed for approval for backlog (90%) upgrades to remediate new packaging regulatory and safety solution for HLS-sets No new material concerns
Slide 5: Examples of recent progress across key markets
Examples of recent progress across key markets Regulatory accomplishments Hemopro 3 – 510k Successful transition of Notified EVH System – Renewal approved Clearance 27-February 2024 Body from DEKRA to TÜV SÜD 27 June 2022 for Maquet Cardiopulmonary GmbH Advanta VXT Vascular Graft, Flixene Vascular G
Slide 6: We have improved customer satisfaction during this critical period
We have improved customer satisfaction during this critical period Global Customer Net Promoter Score* 2021 vs 2023 +5 pp 0 2021 2023 Weighted Customer Net Promoter Score globally *The Net Promoter Score is determined by subtracting the percentage of customers who are not likely to recommend the com
Slide 7: Getinge's expected growth as normalization takes place
Getinge’s expected growth as normalization takes place 2024-2028 Projected organic growth in net sales 2024-2028 • 3-6% Key factors in projection • Negative financial impact from Cardiopulmonary and Cardiac Assist • Normalization in mix towards high margin products in Life Science and Surgical Workf
Slide 8: Acute Care Therapies: challenges still impacting
Acute Care Therapies Challenges still impacting – expecting continued negative effects Projected organic growth in net sales 2024-2028 • 3-5% Key factors in projection • Product challenges in Cardiac Assist and Cardiopulmonary in US impacting negatively in 2024-2028 (as presented previously) • Conso
Slide 9: Life Science
Life Science Biopharma segment expected to bottom out in 2024-2025 Projected organic growth in net sales 2024-2028 •6-10% Key factors in projection •Low to mid-teen growth in Biopharma •GLP-1 supporting healthy capital goods business •Uncertainty when it comes to China •Continued partnerships with k
Slide 10: Surgical Workflows
Surgical Workflows Main growth opportunities in consumables, new segments and digital solutions Projected organic growth in net sales 2024-2028 •4-6% Key factors in projection •Low single digit growth in core capital equipment and service segments •Double digit growth expected in digital solutions a
Slide 11: Financial target and dividend policy for 2024-2028
Financial target and dividend policy for 2024-2028 >12% 30-50% Adjusted EPS, CAGR Dividend of Net Profit Base year: 2023. Assumptions: average organic net sales growth of 3-6% and adj. EBITA margin in line with the structurally motivated margin of ~16-19% by 2028. Getinge | Capital Market Update | M
Slide 12: Updated sustainability targets
Updated sustainability targets Based on a double materiality analysis – relevant priorities integrated in the Corporate Strategy Social • Employee engagement: >70% • Quality regulatory compliance, audit findings per inspection: <1.5 findings Environment • Reduce Scope 1 and 2 emissions by 90% by 203
Slide 13: Productivity improvements ahead
Productivity improvements ahead Continuous improvements within the structure – healthy support to margins Effective processes in purchasing, production, logistics, sales, quality and Portfolio pruning Quality Value Engineering Consolidation of suppliers service Potential structural cost adjustments
Slide 14: Getinge's structurally motivated EBITA margin
Getinge’s structurally motivated EBITA margin 2024-2028 % 19.3% Reduced costs due to lock down ~16-19% Operating leverage Positive mix Acute Care Therapies: Low-Mid 20s Life Science: Mid 10s Surgical Workflows: Low 10s Adjusted EBITA-margin Quality issues (~800 MSEK 2023) 12.5% Negative mix (expecti
Slide 15: Key take-aways
Key take-aways 2024-2028 Cardiohelp and Cardiosave in the US • As a consequence of US FDA’s new recommendations, Getinge has decided to ‒ suspend Cardiohelp and Cardiosave promotional activities in the US until safety concerns are addressed and improvements receive approval and inform all customers
Slide 16: Q&A
Q&A Getinge | Capital Market Update | May 2024 Page 16
Slide 17: Thank you
Thank you Getinge | Capital Market Update | May 2024 Page 17
Slide 18: Forward looking information
Forward looking information This document contains forward-looking information based on the current expectations of the Getinge’s management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectation
Slide 19: Getinge – Passion for Life
“= Se A GETINGE PASSION FOR LIFE