Getinge AB Class B · OMXSTO:GETI_B
Getinge AB Class B — Q3 2003 Earnings Presentation
35 slides from Getinge AB Class B's earnings presentation, 2003
Slide 1: Getinge overview
Getinge overview An expanding Medical-Technology group with focus on comprehensive solutions for infection control, surgical systems and care of elderly and disabled people Customers Acute care Long term care Industry / Laboratories Net Sales 8.6 billion SEK Associates 5 600 Manufacturing 18 product
Slide 2: Business Scope
Business Scope Business Areas Infection Control Extended Care Surgical Systems 40% 31 % 29 % Industry Acute Care Long Term Care I0 % 60 % 30 % Customer Segments (ex Jostra and LSS)
Slide 3: Group objectives & focus
Group objectives & focus gir x GETINGE
Slide 4: Getinge Group Objectives
Getinge Group Objectives Strategic To develop world leading positions in prioritized niches of the health care industry 4
Slide 5: Strong Global Positions
Strong Global Positions Business unit Position Market shares BA Infection Control Sterilization # 1 24 % Disinfection # 1 27 % BA Surgical Systems Surgical Tables # 1 40 % Surgical Lights # 1 38 % Ventilators #1 28 % Cardiopulmonary # 3 22 % Ceiling Service Units # 3 15 % Anaesthesia #3 6% BA Extend
Slide 6: Getinge Group Objectives
Getinge Group Objectives Strategic To develop world leading positions in prioritized niches of the health care industry Financial To increase profit before tax with an average of I5% per annum Internally generated cash flow to sustain an external growth rate of I0% per annum 6
Slide 7: The Getinge Group
The Getinge Group 10000 9000 1000 8000 7000 800 6000 600 5000 4000 400 3000 2000 200 1000 CAGR 24 % 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Invoiced sales Profit before tax 7
Slide 8: The Getinge Group - Focus & Development
The Getinge Group - Focus & Development Infection Control Extended Care Surgical Systems Improved Operating Organic Growth External Growth Performance
Slide 9: Review of Business Areas
Review of Business Areas x GETINGE
Slide 10: Infection Control
Infection Control Create a customer focused group from a number of companies acquired over the last 10 years
Slide 11: Infection Control
INFECTION CONTROL 1990 - 2000 2000 - 2002 2003 Growth through Restructuring Business acquisition development - Improve production structure - Organic growth - Organisational focus - Product development - Brand identity - Integrated solutions - Logistics / distribution - Service provider concept
Slide 12: Infection Control - Orders received
Infection Control Orders received MSEK 2003 2002 Adj curr 2003 2002 Adj curr per market Q3 Q3 flucs & acqs 9 mon 9 mon flucs & acqs Western Europe 386 358 11% 1 134 1 134 2% USA and Canada 331 313 30% 863 1 062 3% Asia and Australia 107 99 9% 292 278 9% Rest of the world 66 59 13% 192 142 38% Busine
Slide 13: Infection Control - Results
Infection Control Results MSEK 2003 2002 2003 2002 2002 Q3 Q3 9 mon 9 mon FY Net sales 745 745 2,302 2,288 3,359 Gross margin % 37.7% 34.3% 39.2% 35.0% 36.2% Operating cost -199 -215 -630 -679 -910 Operating profit 82 40 273 121 306 Operating margin % 11.0% 5.4% 11.9% 5.3% 9.1%
Slide 14: Extended Care
Extended Care Focus on growth from a solid platform through product innovation, market penetration and geographical expansion
Slide 15: Highlights 2003
HIGHLIGHTS 2003 GROWTH Market penetration Strong product pipeline Geographical expansion COMPETITIVENESS Global sourcing Improved production structure Improved logistics
Slide 16: Extended Care - Orders received
Extended Care Orders received MSEK 2003 2002 Adj curr 2003 2002 Adj curr per market Q3 Q3 flucs & acqs 9 mon 9 mon flucs & acqs Western Europe 380 406 -1% 1 235 1 218 6% USA and Canada 199 248 -7% 577 734 -5% Asia and Australia 19 20 -1% 56 56 7% Rest of the world 5 6 -2% 13 20 -34% Business area to
Slide 17: Extended Care - Results
Extended Care Results MSEK 2003 2002 2003 2002 2002 Q3 Q3 9 mon 9 mon FY Net sales 583 640 1,798 1,981 2,720 Gross margin % 47.2% 50.0% 47.8% 50.4% 51.0% Operating cost -181 -223 -595 -682 -900 Operating profit 95 98 265 317 488 Operating margin % 16.2% 15.3% 14.7% 16.0% 17.9%
Slide 18: Surgical Systems
Surgical Systems Create a global leader in the field of Surgical workstations as a platform for further growth in the surgical systems market
Slide 19: Surgical Workstations
SURGICAL WORKSTATIONS Growth opportunities Japan and USA Product development AWIGS / VIWAS New Pendant generation New Light technology Cross selling Heraeus integration
Slide 20: Operating Theatre
OPERATING THEATRE The Equipped OR, Value = $0.75 million Ceiling VARIOP 20.6% pendant 3.4% OR lights 5.0% Gas supply system 3.5% Data MIS unit 8.8% management and monitoring together 10.5% Furniture 5.8% Heart lung machine (Jostra) 13.0% Anaesthesia & Ventilation unit OR table system 13.7 % (LSS) 14
Slide 21: External Growth Surgical Systems
EXTERNAL GROWTH Surgical Systems Radiology Disposables Patient monitoring Surgical instruments Life Support Ancillary Equipment
Slide 22: Acquisition of Jostra - business unit Cardiopulmonary
Acquisition of Jostra - business unit Cardiopulmonary 22
Slide 23: Jostra in brief
Jostra in brief Sales approx 90 M EUR in 2002 Associates ~ 600 Sales in 100 countries, own sales companies in: DE, FR, IT, JP, CA, ES, GB, NL, SE, CN, HK Production: Germany (2 sites), Sweden and Denmark Products: Heart-lung machines, Oxygenators, Centrifugal pumps, related Disposables, Mi
Slide 24: Jostra Integration and Restructuring
Jostra Integration and Restructuring New management team from 1st August 2003 Integration of Jostra’s sales and marketing organisation with that of Surgical Systems Consolidation of Jostra production structure from 4 to 2 sites Reinforce sales and marketing organisation to drive market penet
Slide 25: Jostra Acquisition Financials
Jostra Acquisition Financials The target is to improve Jostra’s EBIT margin to 12 - 15% within 3 years after goodwill amortization Contribution to group earnings in 2003 will be slightly negative to neutral Contribution to group pre-tax profit including goodwill amortization and related financ
Slide 26: Acquisition of Siemens LSS - business unit Critical Care
Acquisition of Siemens LSS - business unit Critical Care 26
Slide 27: Key Data of LSS
Key Data of LSS Life Support Systems (LSS) LSS is one of the world’s leading providers of ventilation and anaesthesia products in the critical care equipment market In 2002/03, LSS have projected revenues of around 205 MEUR The worldwide ventilation and anaesthesia hospital markets account for appro
Slide 28: Total LSS Sales in 2002 by Region
Total LSS Sales in 2002 by Region 23% 15% Japan 15% USA 28% 28% Europe 34% 34% RoW 23%
Slide 29: Financials
Financials LSS will contribute with 10 - 12 MEUR to pretax profit in fiscal 2004 LSS will contribute with 17 - 20 MEUR to pretax profit in fiscal 2005 Operating margins after goodwill depreciation is targeted at 15% longterm
Slide 30: Surgical Systems - Orders received
Surgical Systems Orders received MSEK 2003 2002 Adj curr 2003 2002 Adj curr per market Q3 Q3 flucs & acqs 9 mon 9 mon flucs & acqs Western Europe 446 387 -12% 1 234 1 054 3% USA and Canada 136 154 -23% 366 381 4% Asia and Australia 122 75 33% 354 284 15% Rest of the world 66 32 51% 128 129 -20% Busi
Slide 31: Surgical Systems - Results
Surgical Systems Results MSEK 2003 2002 2003 2002 2002 Q3 Q3 9 mon 9 mon FY Net sales 754 660 2,101 1,743 2,521 Gross margin % 49.7% 50.5% 48.7% 49.1% 47.6% Operating cost -296 -283 -782 -694 -946 Operating profit 78 51 241 162 255 Operating margin % 10.4% 7.7% 11.4% 9.3% 10.1%
Slide 32: Results Q3 2003
Results Q3 2003 32
Slide 33: Getinge AB Results
Getinge AB Results MSEK 2003 2002 Change 2003 2002 Change 2002 Q3 Q3 9 mon 9 mon FY Net sales 2 091 2 054 2% 6 231 6 041 3% 8 640 EBITDA 361 289 25% 1 080 894 21% 1 438 Operating profit 255 188 36% 779 601 30% 1 050 Operating margin 12,2% 9,2% 12,5% 9,9% 12,1% Profit before tax 216 146 48% 664 471 4
Slide 34: Getinge AB Balance sheets MSEK
Getinge AB Balance sheets MSEK Assets 2003-09-30 2002-09-30 2002-12-31 Fixed assets 4,751 4,577 4,564 Current assets 4,735 4,822 4,852 Total assets 9,486 9,399 9,416 Shareholders' equity & liabilities Shareholders' equity 3,230 2,893 3,158 Provisions 1,955 2,084 1,943 Long-term liabilities 1,383 2,8
Slide 35: Getinge AB Key figures
Getinge AB Key figures Q3 Q3 9 mon 9 mon FY Operating Cash Flow, MSEK 495 365 1,424 1,107 1,784 Net debt, MSEK 3,259 3,817 3,376 Equity / Assets ratio, % 34.0% 30.8% 33.5% Net debt / Equity ratio, multiple 1.01 1.32 1.07 Interest cover, multiple 7.7 5.3 5.9