Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — SEB Enskilda Nordic Seminar 2010
25 slides from Getinge Ab Class B's conference presentation, Jan 8, 2010
Slide 1: SEB Enskilda Nordic Seminar
SEB ENSKILDA NORDIC SEMINAR Ulf Grunander, CFO Copenhagen 8 January, 2010
Slide 2: A rapidly expanding medical technology company
A rapidly expanding medical technology company Medical Systems Extended Care Infection Control GETINGE GROUP 2010.01.08
Slide 3: Medical Systems
Medical Systems Revenue, SEK billion: 8.5 Revenues by category 50% 50% Capital Equipment Recurring revenues Revenues by geography 30% 38% Western Europe North America 32% RoW GETINGE GROUP 2010.01.08
Slide 4: Extended Care
Extended Care Revenue, SEK billion: 6.2 Revenues by category 40% 60% Capital Equipment Recurring revenues Revenues by geography 11% 31% 58% Western Europe North America RoW GETINGE GROUP 2010.01.08
Slide 5: Infection Control
Infection Control Revenue, SEK billion: 4.7 Revenues by category 35% 39% Capital Equipment Health Care Capital Equipment Life Science 26% Recurring revenues Revenues by geography 20% 48% Western Europe North America 32% RoW GETINGE GROUP 2010.01.08
Slide 6: 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 GETINGE GROUP 2010.01.08
Slide 7: Global leadership
Global leadership Sterilization no 1 Endoscopic Vessel Harvesting no 1 Disinfection no 1 Beating heart surgery no 2 Anastomosis CABG no 1 Patient Handling no 1 Vascular grafts AAA, TAA no 1 Hygiene Systems no 1 Cardiac Assist IABP no 1 Wound Care/TS no 2 Perfusion no 3 IPC / DVT no 1 Ventilation no
Slide 8: Solution provider
Solution provider Medical Systems Extended Care Infection Control Integrated solutions for Integrated solutions for Integrated infection surgical interventions health care ergonomics control solutions Integrated solutions for cardiac and vascular surgery Life supporting technologies for critical car
Slide 9: Customer relationships
Customer relationships Number of markets 40 Sales companies 92 Sales representatives 1 500 Service engineers 2 350 GETINGE GROUP 2010.01.08
Slide 10: Recent structural changes have improved our earnings quality
Recent structural changes have improved our earnings quality • Enhanced exposure to therapeutic disciplines • Reduced dependence on capital equipment sales • Systematic investments in the Group’s sales organisation in emerging economies GETINGE GROUP 2010.01.08
Slide 11: Drivers for profitable growth
DRIVERS FOR PROFITABLE GROWTH
Slide 12: We expect to outgrow the markets we serve by 2% over the next 3-5 years
We expect to outgrow the markets we serve by 2% over the next 3-5 years • Revenue synergies from recent major acquisitions • R&D investments in recent years have significantly increased our available markets • We will continue to invest in proprietary sales channels in emerging economies GETINGE GRO
Slide 13: We expect EBITA margins to continue to improve in future years
We expect EBITA margins to continue to improve in future years • The acquisitions of Huntleigh, Datascope and the Cardiac and Vascular surgery divisions of Boston Scientific represents SEK 600 – 700 M in annual cost synergies • New and pending product introductions are associated with higher gross m
Slide 14: External growth
GETINGE GROUP EXTERNAL GROWTH
Slide 15: External Growth
External Growth Reinforcing existing leadership positions • We expect bolt-on acquisitions to add approximately. 2% growth per year. Focus: New technology and geographic expansion Strengthening our capabilities as a solution provider • We expect acquisitions of new and leading product lines that wil
Slide 16: Group financial targets
GETINGE GROUP GROUP FINANCIAL TARGETS
Slide 17: Getinge Group financial targets
Getinge Group financial targets • Pre-tax earnings: Average growth of 15% per year • Long-term organic revenue growth: 5% (next 3-5 years 2% above market, i.e 7%) • EBITA margin: ~ 20% (MS: 22%, EC: 19%, IC: 16%) • Cash conversion: 60-70% of EBITDA GETINGE GROUP 2010.01.08
Slide 18: Outlook 2009
GETINGE GROUP OUTLOOK 2009
Slide 19: Outlook 2009
Outlook 2009 • We expect organic revenue growth to amount to about. 1% the 2009 financial year. • We expect pre-tax profit to grow by about 20% compared with the 2008 financial year GETINGE GROUP 2010.01.08
Slide 20: Outlook 2010
GETINGE GROUP OUTLOOK 2010
Slide 21: Expected market trends 2010 - Western Europe
Expected market trends 2010 Western Europe • Continued healthy growth in recurring revenue base. Mid- single digit growth or better. • Equipment revenue flat to low-single digit growth 46 % • Lower than average growth in Extended Care due to high exposure to UK and Northern Europe • Medical Systems
Slide 22: Expected market trends 2010 - North America
Expected market trends 2010 North America • Recurring revenue growth to improve somewhat in 2010 • Capital equipment revenue to improve from a low base • Discontinuation of certain unprofitable products in Medical 32 % Systems (Surgical Workplaces) will lead to declining equipment revenues GETINGE G
Slide 23: Expected market trends 2010 - Rest of the World
Expected market trends 2010 22 % Rest of the World • We expect growth in equipment and recurring revenue to improve compared to 2009 • Positive effects from revenue synergies and expanding sales coverage GETINGE GROUP 2010.01.08
Slide 24: Outlook 2010
Outlook 2010 • We expect organic revenue growth to improve compared with 2009 • We expect pre-tax profit to grow by double digits GETINGE GROUP 2010.01.08
Slide 25: Questions & Answers
GETINGE GROUP QUESTIONS & ANSWERS