Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Investor Day (January 2012)
25 slides from Getinge Ab Class B's investor day presentation, Jan 31, 2012
Slide 1: Getinge Capital Markets Day
GETINGE CAPITAL MARKETS DAY Johan Malmquist, CEO Boston 31st of January 2012
Slide 2: Welcome to Getinge's Capital Markets Day
Welcome to Getinge’s Capital Markets Day 31st of January 2012 Agenda 8.00-9.00 Getinge Group Johan Malmquist, CEO Getinge Group Financial Review Ulf Grunander, CFO 9.00-9.15 Coffee break 9.15-11.30 Business Area Infection Control – Johan Falk, EVP IC Business Area Extended Care – Alex Myers, EVP EC
Slide 3: Presentation outline
Presentation outline Overview and strategic direction Financial targets and financial result 2011 Focus areas Outlook 2012 Questions 3
Slide 4: Overview and strategic direction
Overview and strategic direction
Slide 5: Getinge Group 2012
Getinge Group 2012 Medical Systems Extended Care Infection Control Revenues*: SEK ~25 billion Associates*: 13 000 Sales companies*: 109 Manufacturing sites*: 25 * incl. Atrium Medical 5
Slide 6: Getinge Group breakdown of revenues 2011
Getinge Group breakdown of revenues 2011 By business area By geography By product category
Slide 7: Size has become an increasingly important success factor in healthcare
Size has become an increasingly important success factor in the healthcare industry. Our ambition is to position Getinge as a strong, valuable and preferred partner to the healthcare provider industry.
Slide 8: Getinge has built a competitive business supported by a robust strategy
Getinge has built a competitive business supported by a robust strategy: Global leadership Solution provider Customer relationships We strive to be a global no We strive to combine Getinge will strive to 1 or no 2 in the product products and know-how to establish proprietary areas focused. offer inn
Slide 9: Future ambition
Future ambition Getinge today Getinge tomorrow Revenues SEK 25 Billion Revenues SEK 50 Billion Ebita margin ~21 % Ebita margin >22 % Organic growth ~5 % Organic growth 6-7% Recurring revenue Recurring revenue as % of total revenue 45 % as % of total revenue 75 % Revenue OUS and OWE Revenue OUS and O
Slide 10: Financial targets and financial result 2011
FINANCIAL TARGETS AND FINANCIAL RESULT 2011
Slide 11: Getinge Group financial targets
Getinge Group financial targets Pre-tax earnings: Average growth of 15% per year Long-term organic revenue growth: 5% (market growth) Mid-term organic revenue growth 2% above market growth EBITA-margin ~22% Cash conversion: 60-70% of EBITDA 11
Slide 12: 2011 - Trends in organic order intake
2011 - Trends in organic order intake 2011 YTD MS EC IC TOT Europe 3.9% -4.3% -3.3% -0.7% USA and Canada 0.7% 6.6% -2.2% 1.7% Rest of the world 10.7% 9.8% 23.9% 13.3% Total 5.4% 1.2% 3.6% 3.8% 12
Slide 13: Financials Getinge Group
Financials Getinge Group MSEK 2011 YTD 2010 YTD Organic order growth 3,8% 2,3% Organic revenue growth 4,2% 2,4% Ebita % 20,9% 19,7% Pre Tax Profit 3 444 3 116 13
Slide 14: Getinge Group Results
Getinge Group Results Key Financials MSEK 2011 YTD 2010 YTD Working Capital days 116 120 Cash Conversion, % 65,1% 80,7% Net debt/equity ratio, multiple 1,17 1,01 14
Slide 15: Focus areas
GETINGE GROUP \ Focus areas
Slide 16: Focus Area: External growth
Focus Area: External growth Size is an increasingly important success factor. External growth will help us to attain both financial and strategic targets. 16
Slide 17: External growth
External growth Bolt-on acquisitions in existing product categories Acquisitions of new leading product lines Sterilization no 1 Disinfection no 1 Integrated Infection Control solutions Patient Handling no 1 Hygiene Systems no 1 Wound Care/TS no 2 IPC/DVT no 1 Integrated solutions for health care er
Slide 18: Focus Area: External growth
Focus Area: External growth Bolt-on acquisitions will add approximately 2% growth per annum and will be focused on new technologies and geographical expansion within existing product categories. Acquisitions of new and leading product lines that reinforces our capacities as a solution provider i
Slide 19: Internationalisation
Internationalisation Increased exposure to faster growing developing economies will raise Getinge’s overall organic growth rate – from an export led organization to a multi-domestic group 2006 2008 2010 2011 Target % of Group reveues 19% 22% 26% 29% 35-40% % of Groups organic growth 46% 52% 152% 81%
Slide 20: Innovation & Product development
Innovation & Product development Innovation and new product development will make up a larger part of Getinges future organic growth 2005 2007 2009 2011 BU2012 R/D % of revenues 3.5% 3.9% 4.9% 5.1% 5.6% More customer centric innovation process Enter / create new markets Emphasize development o
Slide 21: Operational excellence
Operational excellence Good potential for further EBITA-margin expansion Supply Chain improvement Continued plant consolidation: We expect to reduce the number of plants by 4-6 from todays level of 25. Reduced depth of manufacturing. Ongoing outsourcing of non core manufacturing activities. Focu
Slide 22: Operational excellence contd.
Operational excellence contd. Commercial operations Sales and marketing expenses represent 24% of product revenues. Roll out of commercial excellence program in progress to ensure focus on the most profitable customer segment Alignment and productivity of sales force Streamlined administrative p
Slide 23: Outlook 2012
GETINGE GROUP \ OUTLOOK 2012
Slide 24: Outlook 2012
Outlook 2012 We expect organic revenue growth to improve compared with 2011 Capital equipment (55% of rev.) WE: Moderate decline NA: Moderate growth ROW: Good growth Recurring revenues (45% of rev.) WE: Good growth NA: Moderate growth ROW: Good growth N.B. - Atrium Medical is not included in o
Slide 25: Outlook 2012
Outlook 2012 We expect earnings growth to remain solid Organic revenue growth to exceed 2011 levels Efficiency gains from supply chain improvements Declining restructuring costs Earnings contribution from Atrium 25