Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Q2 2019 Earnings Presentation
31 slides from Getinge Ab Class B's earnings presentation, Jul 17, 2019
Slide 1: Q2 Report 2019
Q2 Report 2019 Mattias Perjos, President and CEO Lars Sandström, CFO July 17, 2019
Slide 2: Key takeaways – performance
Key takeaways – performance Q2 2019 -0.2 60 • Sales growth continues 49.4 Gross Margin (adj) • Flat Gross Margin Y-o-Y 40 • Flat adj EBITA Margin Y-o-Y 0.0 20 • Positive development on Working Capital 9.4 EBITA Margin (adj) and strong Cash Flow Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018
Slide 3: Key takeaways – events
Key takeaways – events Q2 2019 • Restructuring activities to reduce expenses and improve productivity - Restructuring cost of SEK 106 M in the quarter - Margin contribution is expected to start to show on P&L from H2 2019 • No new material information on Brazil, Mesh litigations and FDA Warning Lett
Slide 4: Organic growth continues
Organic growth continues Growing faster than the average in addressable market Americas EMEA APAC Global Order Intake +5.2% Net Sales +4.0% Getinge Q2 Report 2019 July 17, 2019 Page 4
Slide 5: Contribution in Order Intake
Contribution in Order Intake Bridge Q2 2018 - Q2 2019 Organic change +7.7% +15.5% -0.9% +5.2% 86 129 455 6,787 6,117 MSEK Q2 2018 Acute Care Therapies Life Science Surgical Workflows Q2 2019 Getinge Q2 Report 2019 July 17, 2019 Page 5
Slide 6: Contribution in Net Sales
Contribution in Net Sales Bridge Q2 2018 - Q2 2019 Organic change +6.0% +3.9% +0.8% +4.0% 51 102 +319 Currency impact, MSEK 393 4.3 6,277 3.7 Organic growth, % 5,731 MSEK Q2 2018 Acute Care Life Science Surgical Workflows Q2 2019 Capital Consumables Therapies Getinge Q2 Report 2019 July 17, 2019 Pag
Slide 7: Gross Margin development Q2 2019
Gross Margin development Q2 2019 Bridge Q2 2018 - Q2 2019 Adj GM, % Q2 2019: 58.8 36.4 37.5 49.4 (Q2 2018): (59.0) (35.6) (39.0) (49.6) 23 8 Gross Margin impact 226 Volume IFRS 16 3,101 2,844 Currency MSEK Product mix Regional mix Q2 2018 Acute Care Life Science Surgical Workflows Q2 2019 Therapies
Slide 8: Financial development
Financial development Getinge Q2 Report 2019 July 17, 2019 Page 8
Slide 9: Adjusted EBITA
Adjusted EBITA Bridge Q2 2018 – Q2 2019 Flat margin 9.4% 9.4% +0.4 pp Currency +53 -0.7 pp GP 257 41 +0.2 pp OPEX 23 0.0 pp Depreciation -84 8 +0.1 pp IFRS 16 -78 4 228 -43 4 -21 -55 -93 29 -114 591 MSEK 538 Q2 2018 Gross profit (adj) Selling (adj) Admin (adj) R&D (adj) Other incl D&A Q2 2019 of non
Slide 10: Adjusted EBITA
Adjusted EBITA Bridge Q2 2018 – Q2 2019 +53 11 -35 + 61 Currency impact, MSEK -25 102 591 538 MSEK Q2 2018 Acute Care Life Science Surgical Common Group Q2 2019 Therapies Workflows Functions and other (incl eliminations) Getinge Q2 Report 2019 July 17, 2019 Page 10
Slide 11: Control on OPEX
Control on OPEX Number of FTE’s continue to decrease in the underlying business -383 FTE’s since the peak OPEX in relation to Net Sales since peak 10,900 34.0 10,800 -383 FTE 33.5 10,700 33.0 10,600 32.5 10,500 32.0 10,400 +38 31.5 10,300 The increase is exclusively related 31.0 10,200 to remediatio
Slide 12: Stable cash flow development
Stable cash flow development Q2 2019 • Free Cash Flow positively impacted by Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec SEK M 2019 2018 2019 2018 2018 improvements in working capital Cash flow before changes in working capital 719 440 1 075 712 2 641 Changes in working capital 172 -39 203 -13 -138 • Di
Slide 13: Stable cash flow development
Stable cash flow development Working Capital is declining in days and in absolute terms Working Capital Days continue to improve Working Capital is decreasing despite strong sales growth 132 130 128 126 4% 124 122 120 118 116 114 -6% 2 0 18-Sep 18-Mar 19-Mar 18-Jun 19-Jun 17-Dec 18-Dec Working Capit
Slide 14: Outlook
Outlook Getinge Q2 Report 2019 July 17, 2019 Page 14
Slide 15: Outlook 2019
Outlook 2019 2-4% Organic Net Sales Growth Getinge Q2 Report 2019 July 17, 2019 Page 15
Slide 16: Summary
Summary Getinge Q2 Report 2019 July 17, 2019 Page 16
Slide 17: Key takeaways
Key takeaways Summary Q2 2019 • Sales growth continues above average in addressable market • Positive development in Actue Care Therapies and Life Science • Negative development in Surgical Workflows – significant room for improvement • Restructuring activities of SEK 106 M starting to have positive
Slide 18: Q&A
Q&A Getinge Q2 Report 2019 July 17, 2019 Page 18
Slide 19: Thank you
Thank you Getinge Q2 Report 2019 July 17, 2019 Page 19
Slide 20: Appendix: General info
Appendix: General info Getinge Q2 Report 2019 July 17, 2019 Page 20
Slide 21: Healthcare challenges
Healthcare challenges ~17.9 million people die each year from cardiovascular diseases, making it the number 1 cause of death globally.** The world’s population is expected to increase by ~2 million American one billion people by 2025. patients suffer from a Of that billion, 300 million will Hospital
Slide 22: Getinge today
Getinge today Leading positions in well defined segments Enabling advanced healthcare 170 BSEK Addressable market 90% where it matters the most CSSD* 2-4% Cath Operating ICU Organic growth in Hospitals represent 90 % of sales, Lab Room addressable market 10% goes to Pharma, Lab & Medtech The value
Slide 23: Empowering our customers with knowledge, technology and resources
Empowering our customers with knowledge, technology and resources Cardiovascular Operating Sterile Intensive Care Life Science Procedure Rooms Reprocessing Getinge Q2 Report 2019 July 17, 2019 Page 23
Slide 24: Acute Care Therapies
Acute Care Therapies Advanced solutions for intensive care and cardiovascular surgery Share of Group sales 2018 Sales per region 2018 Solutions for life support and therapy in acute health conditions for • Intensive care • Cardiovascular surgery • Cardiovascular interventions Addressable market • Am
Slide 25: Surgical Workflows
Surgical Workflows Optimizing the capacity of the sterile supply departments and operating rooms Share of Group sales 2018 Sales per region 2018 Solutions for optimizing the capacity of the CSSD and operating rooms • Sterilization • Operating rooms • Patient flow management systems Adressable market
Slide 26: Life Science
Life Science Solutions to prevent contamination in research and production Share of Group sales 2018 Sales per region 2018 Equipment, technical expertise and consultation to prevent contamination in: • Pharma and Medical device production • Lab • Medical Research Adressable market: • Amount to SEK 2
Slide 27: US represents the largest market and growth opportunity for Getinge
US represents the largest market and the largest growth opportunity for Getinge Our top 10 markets, representing 70% of total sales in 2018 34% 6.5% 6.2% 5.3% 4.8% 3.4% 2.8% 2.8% 2.3% 2.3% USA Germany China Japan France Great Britain Australia Italy Sweden India Getinge Q2 Report 2019 July 17, 2019
Slide 28: 19 production sites in 7 countries
19 production sites in 7 countries USA POLAND Fairfield Cardiac assist Poznan Sterilization equipment Mahwah Cardiac assist Wayne Instruments for vascular surgery, TURKEY vascular implants Denver Chemical indicators Antalya Consumables for perfusion products Merrimack Products for the cardiovascular
Slide 29: Getinge's financial targets
Getinge’s financial targets Dividend Organic Earnings policy net sales Per Share 2-4% 2-4% annual average growth >10% 30-50% average growth average growth of net income Getinge Q2 Report 2019 July 17, 2019 Page 29
Slide 30: 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 31: Getinge – Passion for Life
Se a GETINGE PASSION FOR LIFE