Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Debt Investor Presentation (November 2012)
32 slides from Getinge Ab Class B's debt investor presentation, November 2012
Slide 1: Getinge Group November 2012
GETINGE GROUP \ GETINGE November 2012
Slide 2: Disclaimer
DISCLAIMER THIS DOCUMENT DOES NOT CONTAIN AN OFFER OF SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. ANY OFFER
Slide 3: Presentation Outline
PRESENTATION OUTLINE • Overview and Strategic Direction • Financial Targets and Focus Areas • Financials 2012 Q1 - Q3 • Debt Facilities & Funding Strategy • Outlook 2012 • Summary
Slide 4: Overview and Strategic Direction
OVERVIEW AND STRATEGIC DIRECTION
Slide 5: Overview - A Leading Global Medical Technology Company
Overview - A Leading Global Medical Technology Company Medical Systems Established in 1904, Getinge Group developed from the area of infection control to a leading global medical technology company Today, the group consists of 109 sales companies, operating in 37 countries in Europe, North Ameri
Slide 6: A rapidly expanding Medical Technology Company
A rapidly expanding Medical Technology Company 1993 1996 2003 2008 2011 Getinge AB is listed on Acquisition of the Acquisition of Acquisition of Acquisition the Stockholm Stock american Siemens LSS & Boston Scientific of Atrium Exchange company MDT Jostra CS/VS divisions 1989 1995 2000 2007 2009 201
Slide 7: Continuous Growth 1993 - 2011
Continuous Growth 1993 - 2011 CAGR profit before tax: >20 % *Sales and profit before tax in SEK bn 7
Slide 8: Getinge Group Breakdown of Revenues 2011
Getinge Group Breakdown of Revenues 2011 By business area By geographic area By product category Top Ten Revenue Markets 1. USA 5,829* / 26.7% 6. Canada 882* / 4.0% 2. Germany 1,746* / 8:0% 7. Italy 818* /3.7% Among the top ten revenue markets for Getinge, USA is 3. UK 1,680* / 7.7% 8. China 719*
Slide 9: Medical Systems
1 Medical Systems The Medical Systems business area offers surgical systems mainly for cardiology but also equipment for intensive care units under the brand name Maquet Surgical Workplaces Cardiovascular Critical Care OR Lights Cardiac Assist Anaesthesia Systems Operating Tables Cardiac Surgery I
Slide 10: Extended Care
2 Extended Care The Extended Care business area has a stronger focus on elderly and disabled persons and provides systems for hygiene and lifting devices Patient Handling Therapy & Prevention Hygiene Systems Therapeutic Surfaces Patient Lifters DVT Prevention Medical Beds Wound Healing Diagnostics
Slide 11: Infection Control
3 Infection Control The Infection Control business area supplies products designed to prevent the appearance and spread of infections. The product offering is vast, ranging from disinfection and sterilisation equipment to documentation systems for the needs of hospitals, clinics and participants w
Slide 12: Getinge Has Built a 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 the global We strive to combine Getinge will strive to No 1 or No 2 in the products and know-how establish proprietary product areas focused on to offer
Slide 13: Future Ambition
Future Ambition Getinge today Getinge tomorrow Revenues SEK 25bn Revenues SEK 50bn EBITA margin ~21 % EBITA margin >22 % Organic growth ~5 % Organic growth 6-7% Recurring revenue Recurring revenue as % of total revenue 45 % as % of total revenue 75 % Revenue OUS* and OWE** Revenue OUS* and OWE** as
Slide 14: Financial Targets and Focus Areas
FINANCIAL TARGETS AND FOCUS AREAS
Slide 15: 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 EBITA-margin ~22% Cash conversion 60-70% of EBITDA 15
Slide 16: Focus Area: External Growth
Focus Area: External Growth Size is an increasingly important success factor. External growth will help us attain both financial and strategic targets Bolt-on acquisitions will add approximately 2% growth per annum Acquisitions of new and leading product lines that reinforce our capacity as a so
Slide 17: Focus Area: Internationalisation
Focus Area: Internationalisation Increased exposure to faster growing developing economies* will raise Getinge’s overall organic growth rate – from an export led organisation to a multi-domestic group 2006 2008 2010 2011 Target % of Group reveues 19% 22% 26% 29% 35-40% % of Groups organic growth 46%
Slide 18: Focus Area: Innovation & Product Development
Focus Area: Innovation & Product Development Innovation and new product development will make up a larger part of Getinges future organic growth Budget 2005 2007 2009 2011 2012 R/D % of revenues 3.5% 3.9% 4.9% 5.1% 5.6% More customer centric innovation process Enter / create new markets Emphas
Slide 19: Focus Area: Operational Excellence
Focus Area: Operational excellence Good potential for further EBITA-margin expansion Supply Chain improvement Continued plant consolidation: We aim to reduce the number of plants by 4-6 from the current level of 25 Reduced depth of manufacturing. Ongoing outsourcing of non-core manufacturing act
Slide 20: Financials 2012 Q1-Q3
GETINGE GROUP \ FINANCIALS 2012 Q1-Q3
Slide 21: Q3 2012 - Trends in Organic Order Intake
Q3 2012 - Trends in Organic Order Intake 2012 2012 Q3 YTD MS EC IC TOT MS EC IC TOT Western Europe -10.2 % -2.2 % -2.2 % -5.8 % -2.1 % -0.2 % -2.7 % -1.6 % USA and Canada 13.9 % -13.6 % -1.9 % 1.6 % 2.8 % -9.0 % 0.1 % -1.3 % Rest of the world 22.2 % 8.1 % 12.0 % 17.6 % 22.6 % 11.0 % 11.6 % 18.3 % To
Slide 22: Q3 2012 - Consolidated Results
Q3 2012 - Consolidated Results 2012 2011 2012 2011 Q3 Q3 Change % YTD YTD Change % 5 574 4 865 14.6 % 16 433 14 500 13.3 % Net sales, SEK mn Gross margin 52.4 % 52.0 % 0.4 % 52.8 % 52.4 % 0.4 % Operating cost, SEK -2 039 -1 725 18.2 % -6 229 -5 280 18.0 % mn EBITA before 1 033 919 12.4 % 2 906 2 650
Slide 23: Financials Q3
Financials Q3 2012 2011 2012 2011 Q3 Q3 YTD YTD Cash flow from operations, SEK mn 722 696 2 228 2 074 Cash conversion, % 56.6% 59.6% 60.4 % 62.6 % Net Debt, SEK mn 16 814 13 371 Equity, SEK mn 14 513 13 483 Equity / assets ratio, % 35.8 % 38.7 % Net debt / equity ratio 1.16x 0.99x 23
Slide 24: Debt Facilities and Funding Strategy
DEBT FACILITIES AND FUNDING STRATEGY
Slide 25: Debt Maturity Profile
Debt Maturity Profile The financing mix of Getinge consists of medium and long-term loans and other instruments Getinge has a strong relationship with its core banks Lender/Facility 2012 2013 2014 2015 2016 2017 2018 2019 2020 Syndicated Credit Facility with 10 banks EUR 1 200mn July July July T
Slide 26: Net Gearing
Net Gearing Net gearing 2.5 Maquet Boston- ALM divisions Siemens Life 2.0 Support Systems Datascope BHM La Calhène Huntleigh Heraeus Atrium 1.5 Rights issue: 1.0 SEK 1514mn Rights issue: Rights issue: SEK 500mn SEK 1990mn Jostra 0.5 0.0 Average Net Gearing for the period 2000 – 2012 ytd is 1.31 26
Slide 27: Net Debt to EBITDA
Net Debt to EBITDA Net Debt/ EBITDA 5.0 ALM Rights issue: Datascope 4.5 Boston- SEK 500mn divisions Siemens Life La Calhène 4.0 Heraeus Support Systems Huntleigh Atrium 3.5 Maquet BHM 3.0 Rights issue: Rights issue: 2.5 SEK 1514mn SEK 1990mn 2.0 1.5 1.0 0.5 0.0 Getinge has a strong track record in
Slide 28: Outlook 2012
GETINGE GROUP \ OUTLOOK 2012
Slide 29: Outlook 2012
Outlook 2012 Earnings growth is expected to remain solid Organic revenue growth to exceed 2011 levels Efficiency gains from supply chain improvements Earnings contribution from Atrium Acquisition and restructuring charges of USD 25mn to be booked in Q4 2012 The strengthening of the Swedi
Slide 30: Summary
GETINGE GROUP \ SUMMARY
Slide 31: What makes Getinge unique
What makes Getinge unique Continuity Getinge is a company with a long tradition, a diversified business concept and a well-spread global presence Profitability/Diversification Despite the economic crisis, Getinge Group has been consistently profitable due to its diversified portfolio of three bu
Slide 32: Contact
Contact Ulf Grunander, CFO Peter Hjalmarson, Group Treasurer HEAD OFFICE Getinge AB Box 69 SE-305 05 Getinge info@getinge.com +46 (0) 10 335 0000 www.getingegroup.com 32