Slide 1: Q4 Report 2019
Q4 Report 2019 Mattias Perjos, President and CEO Lars Sandström, CFO January 30, 2020
Slide 2: Key takeaways – performance
Key takeaways – performance Q4 2019 51.5 • Sales growth continues 50.5 R12 Gross Margin (adj) % • Increasing margins 49.5 • Strong Cash Flow • Leverage reduced to 2.5 (3.2) 13.5 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 • Dividend,SEK/share: 1.50 (1.00) 12.5 R12 EBITA Margin (adj) % 11.5 Q4 2018 Q1 20
Slide 3: Key takeaways – events
Key takeaways – events Q4 2019 • Continued positive impact from restructuring activities in H1 2019 on underlying performance • OPEX negatively impacted by currency, seasonally elevated personnel costs, remediation and EU MDR • Applikon Biotechnology acquisition – closed January 3, 2020 • Initiated
Slide 4: Organic net sales growth continues
Organic net sales growth continues Positive development in mature markets Americas EMEA APAC Global Order Intake +0.9% Net Sales +1.8% Getinge Interim Report Q4 2019 January 30, 2020 Page 4
Slide 5: Contribution in Order Intake
Contribution in Order Intake Bridge Q4 2018 - Q4 2019 Organic change +2.9% +2.3% -2.4% +0.9% 71 48 346 7,194 6,729 MSEK Q4 2018 Acute Care Therapies Life Science Surgical Workflows Q4 2019 Getinge Interim Report Q4 2019 January 30, 2020 Page 5
Slide 6: Contribution in Net Sales
Contribution in Net Sales Bridge Q4 2018 - Q4 2019 Organic change +5.9% +13.9% -5.6% +1.8% 143 -20 +465 Currency impact, MSEK 485 +4.2 8,498 Organic growth, % 7,890 MSEK Q4 2018 Acute Care Life Science Surgical Workflows Q4 2019 -0.3 Therapies Capital Consumables Getinge Interim Report Q4 2019 Janua
Slide 7: Gross Margin development Q4 2019
Gross Margin development Q4 2019 Bridge Q4 2018 - Q4 2019 Adj GM, % Q4 2019: 61.3 38.5 39.8 50.6 (Q4 2018): (59.9) (35.9) (36.9) (48.0) 89 Gross Margin impact 74 Currency 351 Product mix 4,304 3,790 Regional mix MSEK Volume IFRS 16 Q4 2018 Acute Care Life Science Surgical Workflows Q4 2019 Therapies
Slide 8: Financial development
Financial development Getinge Interim Report Q4 2019 January 30, 2020 Page 8
Slide 9: Adjusted EBITA
Adjusted EBITA Bridge Q4 2018 – Q4 2019 19.7% Margin improvement 17.9% +1.3 pp Currency +1.3 pp GP -0.8 pp OPEX +261 +0.0 pp Depreciation -21 +0.0 pp IFRS 16 -114 4 -2 514 -120 MSEK 1,673 1,412 Q4 2018 Adj Gross profit Adj Selling Adj Admin Adj R&D Other D&A Q4 2019 Getinge Interim Report Q4 2019 Ja
Slide 10: Adjusted EBITA
Adjusted EBITA Bridge Q4 2018 – Q4 2019 +261 5 + 200 61 Currency 30 impact, MSEK 1,673 165 1,412 MSEK Q4 2018 Acute Care Life Science Surgical Workflows Group Functions Q4 2019 Therapies and other (incl eliminations) Getinge Interim Report Q4 2019 January 30, 2020 Page 10
Slide 11: Continued focus on cost control
Continued focus on cost control OPEX continues to go down in relation to net sales -254 FTE’s since the peak Adj OPEX in relation to actual Net Sales 10,900 % 35 10,800 -254 FTE 34 10,700 33 10,600 32 10,500 +23 31 10,400 30 10,300 • Increase: Sales, production and 10,200 remediation 400 • Decrease:
Slide 12: Improved free cash flow
Improved free cash flow Continued efficiency enhancements Significantly improved Free CF WC days continue to improve WC decreasing despite sales growth 1.8 +1.1 BSEK 135 -17 days 130 125 120 1.4 115 110 0.6 0.6 5 0.3 0.1 0 18-Sep 19-Sep 18-Mar 18-Jun 19-Mar 19-Jun 17-Dec 18-Dec 19-Dec Q4 2018 Q1 201
Slide 13: Reduced net debt and leverage
Reduced net debt and leverage Reduced net debt Reduced leverage 3.2 12,6 12,3 11,4 2.5 2.4 9,6 7,9 1.7 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net debt, BSEK Net debt/Adj EBITDA R12 Net debt, BSEK (excl IFRS 16) Net debt/Adj EBITDA R12 (excl IFRS 16) Net debt,
Slide 14: Outlook
Outlook Getinge Interim Report Q4 2019 January 30, 2020 Page 14
Slide 15: Outlook 2020
Outlook 2020 2-4% Organic Net Sales Growth Getinge Interim Report Q4 2019 January 30, 2020 Page 15
Slide 16: Summary
Summary Getinge Interim Report Q4 2019 January 30, 2020 Page 16
Slide 17: Key takeaways
Key takeaways Summary Q4 2019 • Continous improvements in the business and strong customer focus • Sales growth continues • Expected organic net sales growth for FY2020: 2-4% • Increasing margins • Strong Cash Flow • Leverage reduced to 2.5 (3.2) • Dividend, SEK/share: 1.50 (1.00) Getinge Interim Re
Slide 18: Q&A
Q&A Getinge Interim Report Q4 2019 January 30, 2020 Page 18
Slide 19: Thank you
Thank you Getinge Interim Report Q4 2019 January 30, 2020 Page 19
Slide 20: 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
Slide 21: GETINGE
Se a GETINGE PASSION FOR LIFE