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
Slide 1: Interim Report January – June 2015
Interim Report January – June 2015 Alex Myers, CEO and Ulf Grunander, CFO July 15th, 2015
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
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
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
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
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
Slide 7: FDA Update
GETINGE GROUP FDA Update
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
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
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
Slide 11: Financials
GETINGE GROUP Financials
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
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
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
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
Slide 16: Outlook
GETINGE GROUP
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
Slide 18: Getinge Group
GETINGE GROUP
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
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