Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Investor Presentation (February 2009)
29 slides from Getinge Ab Class B's investor presentation, Feb 3, 2009
Slide 1: Getinge
GETINGE 3 February, 2009 Johan Malmquist, CEO
Slide 2: Getinge Group 2009
Getinge Group 2009 Revenue:* 24 billion Associates: 12 800 Revenue by Business area Revenue by Division in * Estimated revenue Medical Systems GETINGE 2009-02-03
Slide 3: Geographical breakdown 2009 projected
GEOGRAPHICAL BREAKDOWN 2009 PROJECTED North America Western Europe 33% 46% Emerging markets, RoW 21% GETINGE 2009-02-03
Slide 4: Revenue by category
Revenue by category Projected 2009 Group USA GETINGE 2009-02-03
Slide 5: Strategic development and external growth
BUSINESS AREA INFECTION CONTROL HEALTHCARE Strategic development and external growth GETINGE 2009-02-03
Slide 6: Getinge strategic cornerstones
GETINGE STRATEGIC CORNERSTONES Global Solution Customer leadership provider relationships We strive to be a We strive to combine A direct approach to global No 1 or No 2 the strength of our our customers is in the product areas leading product crucial to our focused. Market positions and the success
Slide 7: External growth
External growth Size is an increasingly important competitive factor in healthcare. External growth will help us to reach both financial and strategic targets. External growth will also help us to access faster growing market segments and increase our exposure to recurring revenue steams. GETINGE 20
Slide 8: Infection Control
EXTERNAL GROWTH BUSINESS AREA cont. INFECTION CONTROL HEALTHCARE Infection Control Principally bolt-on acquisitions New geographies: Emerging markets New technology: Low-temperature, consumables/chemistry GETINGE 2009-02-03
Slide 9: Extended Care
EXTERNAL GROWTH BUSINESS AREA cont. INFECTION CONTROL HEALTHCARE Extended Care Principally bolt-on acquisitions New technology: Patient handling, wound care New geographies: Wound care in North America GETINGE 2009-02-03
Slide 10: Medical Systems
EXTERNAL GROWTH BUSINESS AREA cont. INFECTION CONTROL HEALTHCARE Medical Systems A combination of bolt-on acquisitions and acquisitions of new leading product lines New geographies: Emerging markets New product lines: Vascular Interventions Cardiac Surgery Critical Care GETINGE 2009-02-03
Slide 11: Operational focus areas
Operational focus areas GETINGE 2009-02-03
Slide 12: Supply chain and geographical expansion
Supply chain Getinge’s supply chain offers a significant and untapped opportunity for improved competitiveness Manufacturing footprint Low cost production Sourcing Reduced manufacturing depth Geographical expansion By increasing our exposure to geographies with attractive growth dynamics we can outg
Slide 13: Product development and capital efficiency improvements
Product development and innovations Innovation and product development has not been fully exploited as means of increasing growth across all business areas. Capital efficiency improvements We will improve our cash flow through reduction in our working capital and improved asset utilisation. GETINGE
Slide 14: 2008 Financials
BUSINESS AREA INFECTION CONTROL HEALTHCARE 2008 Financials GETINGE 2009-02-03
Slide 15: Development of organic order intake
Development of organic order intake 2008 2008 Q4 YTD MS EC IC TOT MS EC IC TOT Europe 21,0% -8,3% 13,5% 7,3% 13,0% 0,3% 0,4% 4,8% USA and Canada -1,1% -1,8% -21,3% -9,2% 4,4% 8,4% 0,1% 4,6% Asia and Australia 16,3% -2,6% 16,9% 12,1% 11,6% 6,4% 11,0% 10,1% Rest of the world 28,8% 131,3% 231,7% 55,2%
Slide 16: Q4 2008 Group results
Q4 2008 Group results 2008 2007 Change 2008 2007 Change Q4 Q4 % YTD YTD % Net sales 6 423 5 156 24,6% 19 272 16 445 17, 2% Gross margin 47,9% 45,7% 48,6% 45,9% Operating cost -1 731 -1 295 33,7% -6 245 -5 007 24,7% EBITA before restructuring 1 436 1 096 31,0% 3 457 2 678 29,1% % 22,4% 21,3% 17,9% 16
Slide 17: Financial targets and how we reach them
Financial targets and how we reach them GETINGE 2009-02-03
Slide 18: Group financial targets
Group Financial targets 15% year over year average growth of pre tax earnings Development of existing positions: 7–8% Acquisition of globally leading product lines: 7–8% To reach and maintain an EBITA-margin of 18-19 % (current structure) Cash flow generation to sustain an external growth rate of 10
Slide 19: EBITA margin targets by business area
BUSINESS AREA INFECTION CONTROL HEALTHCARE EBITA margin targets by business area Act.08 Target Comments IC 13,9% 16% Δ ~ 100 MSEK EC 16,5% 19% Δ ~ 200 MSEK MS 21,1% 19-20% upward revision Group 17,9% 18-19% upward revision GETINGE 2009-02-03
Slide 20: Outperforming our market by approximately 2%
We believe we can continue to outperform our market by approximately 2% in coming year Increased exposure to faster growing emerging markets Sales synergies from recent acquisitions: Huntleigh, Cardiac & Vascular surgery divisions and Datascope New product development has expanded our market potenti
Slide 21: Strengthening operating margins
We believe that we can continue to strengthen our operating margins by: Ongoing realization of cost synergies from recent and pending acquisitions. Declining integration costs. Improved cost position through supply chain enhancement Exposure to product segments with higher profitability Introduction
Slide 22: Integration of recent acquisitions
Integration of recent acquisitions GETINGE 2009-02-03
Slide 23: Integration of Huntleigh completed
HUNTELIGH INTEGRATION Integration of Huntleigh completed Cost synergies will exceed targeted 300 MSEK p.a. Huntleigh headquarter closed New plant structure in place Joint sales and marketing organization under a single brand Additional cost synergies in 2009-2010 Improved logistics 3 PL Common IT in
Slide 24: Integration of Boston Scientific cardiac and vascular surgery divisions
INTEGRATION OF THE BOSTON SCIENTIFIC CARDIAC AND VASCULAR SURGERY DIVISIONS Actions in place to generate planned revenue synergies from 2009 onward (10% organic) Sales of revascularization products through Medical Systems existing sales channels on the OUS markets Sales of Medical Systems perfusion
Slide 25: Integration of Datascope: financial targets and synergies
INTEGRATION OF DATASCOPE CORP. USA Financial targets and synergies We expect revenue synergies from geographical and product complementarities to deliver organic top line growth of 10 % or better Elimination of duplication of sales infrastructure in 9 markets in North America, Europe and Asia Overla
Slide 26: Key initiatives by business area
Key initiatives by business area GETINGE 2009-02-03
Slide 27: Key initiatives: Infection Control
INFECTION BUSINESSCONTROL AREA INFECTION CONTROL HEALTHCARE Key initiatives Supply chain improvements ■ Manufacturing footprint Increased rate of innovation ■ Depth of manufacturing and product renewal ■ Product platform ■ Sourcing / Low cost production Expansion of service and consumables through i
Slide 28: Key initiatives: Extended Care
BUSINESS EXTENDED AREA INFECTION CONTROL CARE HEALTHCARE Key initiatives Structural integration of Huntleigh Continued roll-out and completed. Ongoing cost development of wound- improvements through: ■ Localization of components assist (NPWT) ■ Administrative processes Merger of Huntleigh and Realiz
Slide 29: Outlook 2009
BUSINESS AREA INFECTION CONTROL HEALTHCARE Outlook 2009 We expect organic revenue growth to be somewhat lower in 2009 compared to 2008 actuals. We expect the EBITA-margin to end up in the targeted range of 18% to 19%. We expect the Datascope acquisition to have a marginal impact on pre tax result in