Getinge AB Class B · OMXSTO:GETI_B

Getinge AB Class B — Q2 2015 Earnings Presentation

20 slides from Getinge AB Class B's earnings presentation, Jul 15, 2015

  1. Slide 1: Interim Report January – June 2015

    Interim Report January – June 2015 Alex Myers, CEO and Ulf Grunander, CFO July 15th, 2015

  2. Slide 2: Getinge Group: Continued challenges but optimistic for the future

    Getinge Group Continued challenges but optimistic for the future  Mixed market development Q2, 2015 Q2, 2014 Change % • Low organic order intake -0,7 % Order intake 7 516 6 651 13,0 % • Positive development in North America • Western Europe somewhat weak Organic, % -0,7% -0,5% • Mixed picture in Em

  3. Slide 3: Medical Systems Business Area

    Medical Systems Business Area Weak quarter but positive development in the US  Flat order intake Q2, 2015 Q2, 2014 Change % • Continued positive development in NA, especially in the US (4,4 %) Order intake 3 925 3 420 14,8% • Cardiovascular, strong US performance Organic, % 0,1% -2,9% • Weak develo

  4. Slide 4: Extended Care Business Area

    Extended Care Business Area Good cost containment in a weak market  Weak order intake Q2, 2015 Q2, 2014 Change % • Weak development in Western Europe (-4,2%) and North America (-9,0%) Order intake 1 981 1 817 9,0% • Positive development in ROW (+5,6%) Organic, % -4,1% 4,5%  Gross margin in line wi

  5. Slide 5: Infection Control Business Area

    Infection Control Business Area Positive order intake & continued efficiency agenda  Positive order intake development Q2, 2015 Q2, 2014 Change % • Positive development in North America (6,7%) and Western Europe (2,8%) Order intake 1 610 1 415 13,8% • Strong performance of Life Science business Org

  6. Slide 6: Key Restructuring and Integration Activities Second Quarter 2015

    Key Restructuring and Integration Activities Second Quarter 2015 Medical Systems  Organizational changes within Cardiovascular division  Integration of Pulsion  Total Q2 restructuring cost amounts to SEK 29 million Extended Care  Restructuring program for improved rental business in the US  Res

  7. Slide 7: FDA Update

    GETINGE GROUP FDA Update

  8. Slide 8: FDA General Update

    FDA General Update • Third party inspections in Q2 • Hudson & Merrimack, NJ, USA - completed • Wayne, NJ, USA - ongoing • More rigorous validation process causing production slow-down at Atrium • Financial impact in Q2 – SEK 75 M • The remediation program is progressing according to plan • Continued

  9. Slide 9: FDA Financial impact – Operating Profit

    FDA Financial impact – Operating Profit First quarter 2015 SEK Million • SEK 75 M was charged to the quarter for loss of revenue and higher costs EBITA result -50 • The financial impact on operating profit Restructuring charges -50 by June 30th amounts to SEK 175 M Operating profit -100 • The total

  10. Slide 10: FDA Update Remediation Program Provision

    FDA Update Remediation Program Provision FDA 2014 SEK Million Provision 1st quarter 799 Additional provision, 4th quarter 175 • SEK 101 M was utilized during Currency effect 21 the quarter TOTAL 995 Completed remediation activities 2014, provisions utilized -470 • Closing balance June 30th SEK 319 M

  11. Slide 11: Financials

    GETINGE GROUP Financials

  12. Slide 12: Getinge Group Financial Summary

    Getinge Group Financial Summary SEK M Q2 Q2 Change Jan-Jun Jan-Jun Change • Gross margin decline by 2,3 % 2015 2014 % 2015 2014 % mainly relating to negative currency effects, impact of Consent Decree, Net Sales 7 181 6 327 13,5 13 893 11 959 16,2 low utilization of capital goods plants Organic -0,4

  13. Slide 13: FX effects Q2

    FX effects Q2 Transaction Translation SEK M Total effects effects Gross profit -61 426 365 EBITA -61 124 63 EBIT -61 73 12 Profit before tax -61 48 -13 13

  14. Slide 14: FX effects FY 2015

    FX effects FY 2015 Transaction Translation SEK M Total effects effects Gross profit -240 1 510 1 270 EBITA -240 510 270 EBIT -240 330 90 Profit before tax -240 230 -10 14

  15. Slide 15: Financials Q2

    Financials Q2 2015 2014 Q2 Q2 Cash flow from operation, SEK million 598 901 • Cash conversion from operations below last year due to increase in Cash conversion, % 57,7 73,1 inventory Net Debt, SEK million 23 346 20 415 • Strong balance sheet with equity ratio of 35,2 % and Equity, SEK million 18 82

  16. Slide 16: Outlook

    GETINGE GROUP

  17. Slide 17: Outlook 2015

    Outlook 2015 • Organic revenue growth is expected to improve in 2015 • The outcome of the ongoing discussions with the US FDA is expected to have a negative financial impact of approx. SEK 500 m on operating profit for 2015. • FX effects are expected to negatively impact 2015 pre-tax earnings in the

  18. Slide 18: Getinge Group

    GETINGE GROUP

  19. Slide 19: Forward-looking Information

    Forward-looking Information This document contains forward-looking information based on the current expectations of the Getinge Group’s management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expec

  20. Slide 20: Thank you!

    Thank you! Getinge Group is a leading global provider of equipment and systems that contribute to quality enhancement and cost efficiency within healthcare and life sciences. We operate under the three brands of Arjohuntleigh, Getinge and Maquet. Page 20

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