Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Investor Day (November 2021)
114 slides from Getinge Ab Class B's investor day presentation, Nov 22, 2021
Slide 1: Taking the next step
Capital Markets Day 2021 – Information Package Taking the next step Accelerating growth, productivity and structural improvements
Slide 2: Executive summary
Executive summary Since the CMD in 2018, Getinge has delivered New financial targets for 2022–2025 ► Growth of >4% CAGR ► Organic net sales: 4-6% annual growth on average for the period ► EBITA margin improvement of approx. 8 pp to 19.0% ► Adj EPS: >10% annual growth on average for the period Adj EB
Slide 3: Content
Content 1 What has happened since the CMD in 2018 and the plan going forward 2 Getinge’s position amongst customers 3 This is how Getinge creates value for society (ESG) 4 Business Areas’ priorities to capture the opportunities 5 Finance supporting profitable growth Page 3
Slide 4: What has happened since the CMD in 2018?
What has happened since the CMD in 2018? Getinge 2018-2021 Page 4
Slide 5: Getinge today
Getinge today Leading positions in well defined segments CSSD* 200 BSEK Addressable market Cath Operating ICU Lab Room 4-6% 90% Hospitals represent 90% of sales, Enabling advanced health care Organic growth in addressable market 10% goes to Pharma, Lab & Medtech where it matters the most The value
Slide 6: Our vision: world's most respected and trusted Medtech company
Getinge provides innovative products and solutions that enable better patient outcomes while enhancing health economics Our vision: To become the world’s most respected and trusted Medtech company Page 6
Slide 7: Working with customers within five categories
We work together with our customers to set up the most efficient structures to save lives, with improved clinical outcomes – within five categories Life science Surgical Workflows Acute Care Therapies Cardiovascular Intensive Operating Sterile Life procedures Care rooms reprocessing Science We offer
Slide 8: Recap and results
Recap and results Ambitions presented at the CMD in November 2018 Aim Outcome 2019-2021 Comments 27,901 R12M Net Sales, MSEK 25,000 Get back to >4% org CAGR market growth 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Outgrown the 2019-2021 (YTD) (2-4% org)
Slide 9: Continuous improvement of customer satisfaction
Customer centricity: Continuous improvement of customer satisfaction “How likely are you to recommend Getinge’s products and services to a friend or colleague?” Global customer survey 2021 – Net Promoter Score (NPS)* +12 p Customer Net Promoter Score 39 27 2018 2021 *NPS = Net Promoter Score = # of
Slide 10: Our solutions are needed more than ever
Our solutions are needed more than ever Getinge is well equipped to address global health care challenges – from leading positions 17.9 million people It’s predicted that around die each year from 28 million elective surgeries* Cardiovascular around the globe have been diseases, making it the cancel
Slide 11: Global Trends supporting our business
Global Trends supporting our business Significant opportunities ahead Changing demographics More people, older and sicker Value based New business and Macroeconomics health care payment models ”More-for-less” Digitalization & AI, automation and Health care systems Connectivity digital surgery Knowle
Slide 12: Strong fundamentals in our business
Strong fundamentals in our business Long-term opportunities Market growth Share of Net Sales Market growth per Share of Net Sales per segment 2018* 2018 segment 2022-2025* Q1-Q3 2021 Acute Care Therapies 2-4% 54% 4-6% 59% Surgical Workflows 2-4% 37% 4-6% 28% Life Science 3-5% 9% 8-10% 13% * Annual g
Slide 13: Leading positions and high barriers of entry
Leading positions and high barriers of entry Since 2018, Getinge has become even more preferred among customers Strengthened Increased market market position penetration from strong position 2018 2021 ..has more than 25,000 customers globally.. Other position Other position ..and supply all top 10 h
Slide 14: What is in the plan for the coming years?
What is in the plan for the coming years? Getinge 2022-2025 Page 14
Slide 15: Our strategic priorities
Our strategic priorities Step 3 Focus in 2022-2025 Accelerating growth, productivity and structural improvements Quality and Sustainability Capture global growth • Proactive and patient centric quality – a learning • Continue therapy expansion journey Step 1 organization • Channel and geographic mar
Slide 16: Gravitation towards products and markets with high growth and margins
Gravitation towards products and markets with high growth and margins High growth and margin Other 2018 2021 2025 Decision to allocate resources to Higher productivity throughout the value chain, Product launches and capacity high growth and margin products. supporting high growth and margins catego
Slide 17: Underlying EBITA-margin improvement
Underlying EBITA-margin improvement Significant improvement 2020-2021 adjusted for COVID-19 EBITA and underlying Earnings from additional sales related to COVID-19 margin trend Underlying EBITA-margin improvement Underlying adj EBITA, margin Adj EBITA MSEK 2018 2019 2020 2021 Q3 LTM Page 17
Slide 18: New financial targets 2022-2025 and dividend policy
Getinge’s new financial targets 2022-2025 and dividend policy Organic net sales growth Adj EPS Growth Dividend policy 4-6% >10% 30-50% On average during the period On average during the period Of net profit each year Page 18
Slide 19: EBITA margin 2025 as an outcome of the targets
EBITA margin 2025 as an outcome of the targets Organic net sales growth Adj EPS Growth Adj EBITA margin (adj) 2025 4-6% + >10% = >21% On average during the period On average during the period Gradual improvement in the period, 2022-2025 2022-2025 taking adjusted EBITA margin to above 21% by 2025 Pag
Slide 20: Creating added value through M&A
In addition: Creating added value through M&A Increasing customer value, growth and margins by leveraging both operational and structural opportunities The business has high barriers of Getinge is able to entry The target provide added value company has a The price offers leading offering prospects
Slide 21: Getinge's position amongst customers
Getinge’s position amongst customers Page 21
Slide 22: Our top markets make up >70% of net sales
Our top 10 markets make up >70% of net sales China is fast growing and US still represents high potential 33,3% 7,4% 6,7% 4,9% 4,3% 3,3% 3,2% 2,6% 2,6% 2,4% USA China Germany Japan France Italy Great Britain Sweden Canada Australia Page 22
Slide 23: Medtech market growth and trends
Medtech market growth and trends Macro regions and key countries Global: 4-6% EMEA 3-5% AMERICAS 4-6% APAC 6-8% Market Growth* 2022-2025 Germany ̴6% United States ̴5% China ̴8% • Price pressure (bigger GPOs, consolidation • Rising prevalence of chronic diseases in • Recently initiated regulations in
Slide 24: Health care market trends
Health care market trends Impact on hospitals Trends* and results Effect Hospital response • Aging Population Consolidation 1 Mergers and GPOs • Improved Growing access Costs • Personalized Shift to Out of Hospital Care Demand Increase: 2 Telecare, Homecare, Ambulatory Surgery Centers • Technology M
Slide 25: Commercial strategy
Commercial strategy Continues to deliver value 1 • “Double down” on China, set up subsidiaries 1 • Outcome based operational and clinical in Vietnam and Indonesia as well as branch efficiency models leveraging digital solutions 2 Leverage 2 in KSA and expanded G2M in Russia Differentiation and value
Slide 26: Successful tactical implementation
Successful tactical implementation Examples of differentiation through value creation Implementation of INSIGHT in Performance improvement the Emergency Ward of the program in the CSSDs of Norrland's University Hospital Solna and Huddinge • Interactive touch screens, “anywhere” mobile devices and in
Slide 27: Successful tactical implementation: service and pricing
Successful tactical implementation Examples of service and pricing State of the art profitability Pricing measurement and management Excellence • Diligent and tight Service management needed • Implementation of Pricing Governance • Upgraded service management in key countries • Launch of Statistical
Slide 28: Getinge's presence at top hospitals globally
Getinge’s presence at top 100 hospitals globally* Large potential for continued growth 32% The ambition is to move more customers into the “High” and 24% 23% “Very High” categories 17% 4% Very High High Mid Low Very Low *Getinge’s assessment Page 28
Slide 29: Three reasons why sales will continue to improve
Three reasons for why Getinge’s Sales will continue to improve Culture: Further strengthening of high ambition culture, which is customer and patient focused, and enabled through exemplary team and cross functional collaboration Efficiency: Ongoing efficiency gains related to pricing, service and Go
Slide 30: How Getinge creates value for society (ESG)
This is how Getinge creates value for society (ESG) Page 30
Slide 31: Building a long-term sustainable company
Building a long-term sustainable company Sustainability
Slide 32: How Getinge addresses challenges and opportunities
How Getinge structurally addresses the challenges and opportunities …and create long term value for customers and other stakeholders Environmental & Social Engagement Contribution to a sustainable health care market through environmental and social responsibility and making a positive impact in soci
Slide 33: Reporting standards and control functions
Reporting standards and control functions Governance Model incl. Sustainability Board formed by Getinge Executive Team (GET) – complemented by Sustainability Committee of organizational stakeholders (top-down and bottom-up approach to anchor Sustainability Program Initiatives) International Reportin
Slide 34: Sustainability Targets
Sustainability Targets Sustainability area Target Quality culture Customer Quality Improvement Index >70% Passionate Employee engagement >70% employees Environmental & CO2 neutral by 2025 Social engagement Busines ethics & All employees are appropriately trained responsible leadership Page 34
Slide 35: Environmental & Social Engagement
Environmental & Social Engagement Page 35
Slide 36: Raising the ambitious level
Raising the ambitious level • Environment: Initial activities of • Environment: Materiality Analysis • Environment: Science Based target Initiative environmental scoping • Sustainability GRI Reporting • Fleet transfer • Social: Initial activities on Corporate and • Sustainability Program • New trave
Slide 37: Carbon Neutral Company by 2025
Carbon Neutral Company by 2025 CO2 Emission Reduction Plan for Scopes 1 and 2*: 2. Renewable Energy 3. Green Energy generation (Solar) 4 Programs driving the change 1. Energy Savings 4. Compensation at Getinge sites: 100% 25000 90% • Energy savings / energy efficiency gains 80% 20000 (e.g. machinery
Slide 38: How environmental priorities add value going forward
How environmental priorities add value going forward Sustainable health care offering Creating customer and employee engagement through sustainability activities towards a future-oriented circular economy: • EcoDesign for an advanced sustainable market offering • Reducing energy and water consumptio
Slide 39: Social Engagement
Social Engagement Corporate Partnerships One of the largest international An international not-for-profit The Foundation for Queen Silvia Science experience center, non-governmental organizations organization working to make Children’s Hospital fundraise money using playful methods to teach and inno
Slide 40: Quality Culture
Quality Culture GETINGE 3
Slide 41: Strengthened quality system and compliance processes
Strengthened quality system and compliance processes Enabling stability and productivity improvements going forward • Entering Consent Decree with FDA • Intense remediation • Implemented program to bring Quality closer to Operations • Commitment to implement global • All quality systems at the remed
Slide 42: Getinge Quality Strategy 2.0
Getinge Quality Strategy 2.0 Implementation of Quality as an integral part of the organization Examples of activities to integrate quality in the organization Achievements to date • Move Quality closer to Operations • Quality in Operations implemented in almost all sites, project will be completed Q
Slide 43: Quality Regulatory Compliance Development
Quality Regulatory Compliance Development KPI 2018 2021 2024 Number of notified bodies 9 4* 2 Sites EU-MDR certified** 0/12 5/12 12/12 Simplification of complaint handling by harmonizing systems (nr. of systems) 9 1 1 * Including the notifying body for Quadralene that was acquired in 2020 ** 42% (5
Slide 44: How Quality adds value going forward
How Quality adds value going forward Value-add of quality • Customer satisfaction • Patient and user safety Shared value • Business risk reduction for stakeholders • Productivity and structural effectiveness • Learning organization Page 44
Slide 45: Business ethics & responsible leadership
Business ethics & responsible leadership To enable and inspire all employees to make the right decisions and to foster an open and transparent culture Page 45
Slide 46: Business Ethics & Responsible Leadership – the journey
Business Ethics & Responsible Leadership – the journey Responsible business in all relations • A global organization for Ethics & • E&C Organization strengthened 10+ professionals in 10 • Getinge Ethics & Compliance Report Compliance was established countries • HIPAA* related risk assessments launch
Slide 47: Update on Brazilian investigations in Medtech
Update on Brazilian investigations of anti-competitive practices in Medtech April 2017 Since 2017 Getinge has cooperated • Launch of Operation Compound Invoice by the Brazilian Federal Police extensively with regulators to resolve allegations of misconduct in Brazil. May 2017 • Getinge hires outside
Slide 48: Business Ethics & Responsible Leadership Development
Business Ethics & Responsible Leadership Development KPI 2020 2021 2022 All employees should receive Business 85% 87% 89% Ethics related training at least once a year Total number and % of sites assessed 3 7 7 annually for risks related to corruption Percentage of governance body members (Board of D
Slide 49: How business ethics priorities add value
How Business ethics and responsible leadership’s priorities add value going forward Value-add of: • Improved risk mitigation • Responsible use of public funds Shared value • Meeting stakeholder expectations for stakeholders • Leading the way in the industry Page 49
Slide 50: Passionate employees
Passionate employees Page 50
Slide 51: Structured journey towards even higher engagement
Structured journey towards even higher engagement • Identification of competence and • Launch of HBS executive program • Smart Workplaces concept launched globally leadership needs • Digitalization of people plan processes initiated • 650 employees identified as emerging leaders • Design of people p
Slide 52: Employee engagement
Above target for Passionate Employees 70 (target) Employee engagement (Target: 70) Other key improvements and events in recent years • 74% successors in place for grade 8+ positions (63% 2020) • 100% of senior positions have a successor identified 72 • The Smart Workplaces concept has been a global
Slide 53: Case on leadership during COVID-19
Case on leadership during COVID-19 Developed leadership New demands on seminars with Harvard Handled the pandemic 1000+ managers leaders identified Business School, participating in a productive way early on in the focusing on change pandemic management Page 53
Slide 54: Case on new, smarter ways of working
Case on new, smarter ways of working New demands on Mapping of efficient ways of Resulting in higher employees thoughts Created a global Smart working identified about the new Workplaces concept productivity, engagement early on in the working situation and sustainability gains pandemic Smart Workpl
Slide 55: How Employee priorities add value going forward
How Employee priorities add value going forward • Having a higher purpose (to save lives) is the best starting point when building a successful company in a sustainable way • Having a culture where philosophy and priorities are fully understood creates a positive momentum across the organization • C
Slide 56: Business Areas' priorities
Business Areas’ priorities to capture the opportunities Page 56
Slide 57: Acute Care Therapies
Acute Care Therapies GETINGE
Slide 58: Acute Care Therapies: The Business Area in Brief
Acute Care Therapies The Business Area in Brief Therapies and life support that enable clinicians to save lives, improve outcomes and reduce cost within: • Intensive Care • Cardiovascular Surgery • Cardiovascular Interventions The addressable market • SEK 100 billion with expected organic growth of
Slide 59: Financial summary of BA performance
Financial summary of BA performance 31.1% Strong growth during the period 19.2 29.3% 18.7 • Advanced ICU ventilators at record levels due to COVID-19 21.2% • Strong growth in Cardiopulmonary (ECMO), set to continue due to 16.7 structural demand 15.1 • Cardiac surgery and vascular interventions negat
Slide 60: Offering, market position and competitors: ICU
Acute Care Therapies’ offering, market position and competitors Intensive Care Unit (ICU) Main activities Getinge portfolio • Launch new ventilators and ECMO devices with improved clinical outcomes, hospital cost efficiencies and lower COGS for Getinge • Expansion of high-end ECMO disposable capacit
Slide 61: Offering, market position and competitors: Cardiovascular surgery
Acute Care Therapies’ offering, market position and competitors Cardiovascular surgery Main activities Getinge portfolio • Launch new EVH device with improved ease-of-use to a significantly lower COGS • Launch new high-end heart-lung machine with superior usability Endoscopic vessel harvesting Marke
Slide 62: Offering, market position and competitors: Cardiovascular interventions
Acute Care Therapies’ offering, market position and competitors Cardiovascular interventions Main activities Getinge portfolio • Covered stents towards Premarket Approval and developing next generation products • New indications and partnerships for covered stents • Launch of an innovative axial acc
Slide 63: High profitability and growth expected in Cardiopulmonary
High profitability and growth are expected to continue in Cardiopulmonary Rationale behind forecast Cardiopulmonary 2018 to 2021 2021 to 2025 • Growth: Capacity expansion, new products and tail wind from segment growth factors Cardiac Systems • Margin: Factory absorption with higher volumes, COGS Gr
Slide 64: COVID-19 has accelerated the need to improve intensive care
COVID-19 has accelerated the need to improve intensive care Getinge positioned to become the leading eco-system partner of choice 1 in ICU ventilation 1 in ECMO 1 in hemodynamic monitoring for the ICU Challenges in the ICU Recent innovations addressing the needs Internal development • Clinical compl
Slide 65: Next generation
Next generation Most advanced mid range ventilator on the market New Servo-c • Clinical tools and therapy guidance – made easy • Equipped with Guide and prepared for Getinge Online • Significantly reduced COGS • Filling the gap between high end and value ventilators – replacing legacy products Guide
Slide 66: ICU ventilator aftermarket potential
ICU ventilator aftermarket potential Installed base development Aftermarket potential Digitalization impact COVID-19 boosted our installed base Large potential for aftermarket sales Connectivity – a game changer • Currently more than 100,000 ICU ventilators • Limited focus historically • Increased c
Slide 67: High potential in Extracorporeal Life Support
High potential in Extracorporeal Life Support (ECLS) Historic sales development Growth Factors How capture the growth Increased adoption for ARDS patients Capacity expansion • COVID-19 boosted the use of ECMO worldwide • Disposables – HLS sets tripled since 2018 • Hardware Therapy expansion – more t
Slide 68: Activities to improve productivity
Activities to improve productivity Innovation Sourcing & Production • Increased inorganic and organic technology • Product line moves and COGS reduction programs investments • COVID-19 learnings employed: Development of supply chain • Strong focus on digital and connectivity redundancy and partnersh
Slide 69: Examples of productivity improvements
Examples of productivity improvements Footprint consolidation Production cost reduction Portfolio pruning Beating heart surgery (Acrobat family) US Fairfield US 36% Wayne Wayne* Reduction of Technical Files Mahwah Estate Product sales transfer 91.9MSEK Cost avoidance In EU MDR US Wayne CHINA uplift
Slide 70: Acute Care Therapies' scenario 2022-2025
Acute Care Therapies’ scenario 2022-2025 Net sales EBITA margin (adj) 2025 4-6% >26% Organic Growth on average Gradual improvement throughout the period during the period Flattish YoY growth in 2022 due to tough comps ‘22 ‘23 ‘24 ‘25 Net sales trajectory through the period Page 70
Slide 71: Main success factors for Acute Care Therapies
Main success factors for Acute Care Therapies • Well positioned in several life-saving product segments – and several new and important products are moving through our development pipeline • Strong focus on accelerating growth through innovation, internally and with external partners – special atten
Slide 72: Surgical Workflows
Surgical Workflows GETINGE
Slide 73: Surgical Workflows: The Business Area in Brief
Surgical Workflows The Business Area in Brief Surgical Workflows offering • Infection control: Equipment and consumables for safe and efficient reprocessing of surgical instruments and endoscopes • Surgical Workplaces: Tables, lights, booms and advanced Operating Rooms design • Digital Health Soluti
Slide 74: Financial summary of BA performance
Financial summary of BA performance 9.4 9.4 Growth interrupted by COVID-19 – but orders picking up rapidly 8.6 2.4% • Product launches and M&A to increase the consumables share of 8.2 1.9% the portfolio 7.9 7.9 • Pruning the portfolio to enable productivity improvements - while 222 covering premium
Slide 75: Offering, market position and competitors: Infection Control and OR
Surgical Workflows’ offering, market position and competitors The Business Area in Brief Infection Control Operating Room Capital equipment Capital equipment Tables Hybrid Lights Modular Washers Sterilizers Low Temp AER (Endoscope Walls Sterilization Reprocessing) Rooms & Booms Market Growth: 4-6% M
Slide 76: Offering, market position and competitors: Service, Consumables, Digital
Surgical Workflows’ offering, market position and competitors The Business Area in Brief Infection Control Digital Health Service Consumables Solutions Getinge offers a complete range of OR Management Sterile Supply Patient Flow Getinge Chemistry & & OR Integration installation Management Management
Slide 77: Trends
Trends Segment dynamics Economic pressure on health care Enhanced Regulatory Environment COVID-19 economic systems, consolidation of hospitals, staff Requirements sustainability and CO2 recovery and implications and fund shortage impact for business Operating rooms Infection Control Battle against H
Slide 78: SWift – SW Strategic transformation plan
SWift – SW Strategic transformation plan Towards 10% EBITA performance Differentiate our Deliver on higher legacy businesses productivity standards Gain share and outperform market Increase margins Priorities Priorities Accelerate shift to • Premium technology leadership new segments • Sourcing and
Slide 79: Surgical Workflows growth cases
Surgical Workflows 2 growth cases Value Segments Infection Control Consumables Page 79
Slide 80: We continue to build up the value segment offering
We continue to build up the value segment offering As a complement to premium Solsus 66 Value segment sterilizer from Suzhou Price Segment dynamics >100 units expected in 2021 for Year 1 100 • Contains most Premium advanced Price 80-100 Focus area technical features Made in China Growing footprint i
Slide 81: Acquisitions strengthening position in IC consumables
Quadralene and technology from Verrix 2 recent acquisitions strengthening our position in IC consumables Getinge Chemistry Getinge Sterility Assurance Technology from • Quadralene is a global manufacturer and expert in decontamination • Ramping-up Getinge Denver as a global Center of Excellence for
Slide 82: Accelerating digital health care transformation
Accelerating digital health care transformation Workflow optimization for efficiency gains and staff satisfaction Connected Equipment Torin – OR Management TDOC – Getinge Online – Sterile supply Management Getinge Online portal for all connected OR Management solution for optimized Sterile supply ma
Slide 83: Surgical Workflows productivity improvement cases
Surgical Workflows 2 productivity improvement cases Platform strategy and portfolio simplification Value engineering (QVE) Page 83
Slide 84: Value engineering QVE Projects dashboard 2021
Value engineering QVE Projects dashboard 2021 Surgical Workplaces Example with Sterilizer Project Completion • “Design to cost” and frugal engineering mindset • Focus on process, electric, chamber, material design changes QVE Mobile Table 2020 • Collaboration with suppliers for easier manufacturing
Slide 85: Portfolio simplification of sterilizers
5 factories – 18 models 2 factories – 6 models Skärhamn Table Top & Mini Skärhamn Poznan Ankara Rochester Poznan Industrial 2 simplification Rochester Small enabled by Getinge Portfolio Getinge platform Ankara simplification Rochester Poznan Getinge Sterilizers: Medium Getinge from 18 models Suzhou
Slide 86: Profitability improvements expected in all segments
Profitability improvements expected in all segments Portfolio gravitation evolving towards higher gross margin segments 2018 to 2021 2021 to 2025 Comments • Continued GP improvements via current and upcoming supply chain and service productivity actions Gross Margin Gross Margin • Mid single digit g
Slide 87: Surgical Workflows' scenario 2022-2025
Surgical Workflows’ scenario 2022-2025 Net sales 2022 - 2025 EBITA margin (adj.) 2025 4-6% Organic Growth on average >10% Gradual improvement throughout the period during the period Comeback effect in 2022 ‘22 ‘23 ‘24 ‘25 Net sales trajectory through the period Page 87
Slide 88: Main success factors for Surgical Workflows
Main success factors for Surgical Workflows • Continued ability to execute on supply chain and service productivity improvements • Differentiation of legacy businesses with continued innovation leadership and competitive moat on key customer mega-trends • Accelerated portfolio shift towards attracti
Slide 89: Life Science
Life Science GETINGE
Slide 90: Life Science
Life Science Offers equipment and services for efficient and compliant Life Science research and manufacturing processes “By leveraging our deep application know-how and global footprint, Getinge partners with scientists and engineers to develop and manufacture better pharmaceuticals. We focus on up
Slide 91: Financial summary of BA performance
Financial summary of BA performance 4.0 High growth since establishing Life Science as a Business Area 18.7% 3.4 • Alignment of sales and supply chain processes 3.3 13.8% 13.0% • Clear growth strategy – focus on recurring revenue 2.9 2.6 • DPTE-BetaBag® net sales growth 18-21 CAGR 40% 2.5 620 EBITA
Slide 92: Life Science market, position and priorities: research labs
Life Science market, position and priorities Research labs Market Market Main Key Lab Washer & Sterilizers Market Growth activities Size* Share Competitors • Sartorius • Expand SU Bioreactors 5.4 BSEK 8-10% 14% • Steris • Expand lab sterilizer portfolio • Eppendorf • Strengthen distributor set-up •
Slide 93: Life Science market, position and priorities: production
Life Science market, position and priorities Production Washers & Sterilizers Market Market Main Key Size* Market Growth Share Competitors activities • Cytiva • Grow DPTE® portfolio 10.4 BSEK 10-12% 12% • Thermo Fisher • Develop SU Bioreactors Bioreactor Systems • Sartorius • Adjacent bioprocess • S
Slide 94: Partnering with major pharma companies, CDMOs and research institutes
Partnering with major pharma companies, CDMOs* and research institutes world wide *CDMOs: Contract Development and Manufacturing Organizations Page 94
Slide 95: Accelerated profitability and growth
Accelerated profitability and growth Overall improved margin as single-use portion increase 2018 to 2021 2021 to 2025 Comments 2018–2021: Total growth 20% CAGR Single-use • Accelerated growth of high margin single-use Gross Margin Gross Margin solutions Single-use • Improved margins in projects and
Slide 96: Sterile Transfer ECO SYSTEM
Sterile Transfer ECO SYSTEM DPTE Alpha port is the gateway to the aseptic core of barrier filling lines. Ports are used for several applications: • Component transfer (core driver for DPTE-BetaBags®) • Liquid transfer • Quality assurance products • Transfer of machine parts • Waste Transfer into the
Slide 97: Single-use sterile transfer solutions
Single-use sterile transfer solutions Solid #1 player in a fast growing market Market trends continue to support growth of single-use solutions for sterile and aseptic transfer: • Faster design and construction of new production facilities • Reduced capital investment (CAPEX) • Reduced operational c
Slide 98: Capacity increase and time reduction vs stainless steel
Capacity increase and time reduction vs stainless steel Case Study: advantages in fill-and-finish Stainless Steel Single-use Clean and set-up Validation time Operator training 14 hr Extensive 2 weeks < 1 hr Zero 2 days 40% 40% capacity increase can be achieved with single-use Equipment utilization 3
Slide 99: Successful acquisition of Applikon
Successful acquisition of Applikon Offering bioreactor systems for effective biopharma research and production • Market is growing double digit due to high activity in biopharma • 32% net sales growth Q3 2021 LTM • Getinge offers unique and attractive features in the bioreactor software enabling eas
Slide 100: Activities to improve productivity
Activities to improve productivity Sourcing & Production • Improve productivity by Manufacturing Excellence • Expansion of DPTE- BetaBag® manufacturing capacity, secure redundancy, reduced lead times and environmental R&D impact • Leverage digital solutions and platforms for driving product developm
Slide 101: Life Science's scenario 2022-2025
Life Science’s scenario 2022-2025 Net sales EBITA margin (adj) 2025 9-11% >22% Organic Growth on average Gradual improvement throughout the period during the period Vaccine effect in 2022 ‘22 ‘23 ‘24 ‘25 Net sales trajectory through the period Page 101
Slide 102: Main success factors for Life Science
Main success factors for Life Science • The pandemic is a catalyst for intensified development of biopharma drugs • Market trends strongly support growth in single-use solutions • Getinge secured DPTE-BetaBag® capacity to capitalize on market growth • Strong R&D pipeline to support Getinge’s market
Slide 103: Finance supporting profitable growth
Finance supporting profitable growth Page 103
Slide 104: The financial value creating journey
The financial value creating journey Two phases: 2018-2021 & 2022-2025 and onwards Phase 1: Value creation 2018-2021 Phase 2: Value creation 2022-2025 and onwards Improve Efficient use Profitable Balanced profitability of assets investments risk & reward Leverage from sales growth Improved control o
Slide 105: Phase 1: Delivery in all dimensions
Phase 1: Delivery in all dimensions Improve profitability Efficient use of assets Creating a healthy position for taking on the next step Leverage from sales growth Improved GP margins Operational leverage 19.0 53.0 27,901 25,000 50 12 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 106: Phase 1: Delivery in all dimensions
Phase 1: Delivery in all dimensions Improve profitability Efficient use of assets Creating a healthy position for taking on the next step Improved Free Cash Flows Improved Working Capital Reduced Net Debt Reduced Leverage Reduction of 3.4 -39 days 14.0 2.3 2.0 1.6 1.4 90 1.2 4.1 0.6 (0.1x excl. pens
Slide 107: Phase 2: Creating added value
Phase 2: Creating added value Profitable investments Balanced risk & reward Increasing return on ROIC by leveraging operational and structural opportunities 1 Perception gap Optimum Focus 2018–2021 Company (continues to be key going forward) “as is” 2 Pentagon of 5 restructuring value maximum Strate
Slide 108: Phase 2: Creating added value
Profitable Balanced Phase 2: Creating added value investments risk & reward Increasing return on ROIC by leveraging operational and structural opportunities 18.8% 7.5% Continuous Effective Capturing improvements capital organic Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Slide 109: Effective use of capital
Effective use of capital Technicalities I (III) CAPEX Act as an Investment Graded company R&D spend expected at approx. 6% of net sales whereof slightly more than half will be capitalized Page 109
Slide 110: FX flows impacting net sales and EBITA
FX flows impacting net sales and EBITA Technicalities II (III) Net long in USD Transaction impact most evident in USD/SEK, EUR/USD and EUR/SEK -227 MSEK on EBITA Page 110
Slide 111: Financial Net and Tax
Financial Net and Tax Technicalities III (III) Financial net significantly reduced Outlook on tax for 2022-2025 (approx.) Tax rate may vary depending on country mix As an example Getinge is taking important steps on the corporate social bond market (and the maturity profile has improved) Page 111
Slide 112: The new financial targets on organic growth and adj EPS
The new financial targets on organic growth and adj EPS Impact on operational Return on Invested Capital (with the base scenario on EBITA-margin) Organic net sales growth Adj EPS growth Adj EBITA margin (adj) 2025 Page 112
Slide 113: GETINGE – Passion for Life
Se ba | GETINGE PASSION FOR LIFE
Slide 114: Forward looking information
Forward looking information This document contains forward-looking information based on the current expectations of the Getinge’s management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectation