Getinge AB Class B · OMXSTO:GETI_B
Getinge AB Class B — FY2015 Earnings Presentation
21 slides from Getinge AB Class B's earnings presentation, Jan 28, 2016
Slide 1: Year-End Report January – December 2015
Year-End Report January – December 2015 Alex Myers, CEO and Ulf Grunander, CFO January 28th 2016
Slide 2: Getinge Group
Getinge Group EBITA, adjusted for one-offs, amounted to SEK 2,138 M - equal to an increase of 7,2 % Positive order intake Q4, 2015 Q4, 2014 Change % • Order intake grew organically by 1,2 % Order intake 8 326 7 747 7,5 % • Strong development in Infection Control Organic, % 1,2 % 3,0 % • Growth in
Slide 3: Medical Systems Business Area
Medical Systems Business Area Strong revenue growth but margins under pressure Weak order intake development Q4, 2015 Q4, 2014 Change % • Strong performance of Critical Care while weaker within Surgical Workplaces & Cardiovascular. Order intake 4 464 4 289 4,1 % • Stable development in both WE & N
Slide 4: Extended Care Business Area
Extended Care Business Area Weak quarter and continued challenges Decline in organic order intake, -1,5 % Q4, 2015 Q4, 2014 Change % • Weak development in WE, NA in line with last year Order intake 2 004 1 933 3,7 % • Positive order intake in RoW, 12 % vs. last year • Challenges in several key mar
Slide 5: Infection Control Business Area
Infection Control Business Area Very strong quarter with double digit organic growth Order intake grew by 14,1 % organically Q4, 2015 Q4, 2014 Change % • Positive development in all regions • Double digit growth in WE & RoW with 23,3 % and Order intake 1 858 1 524 21,9 % 12,1 % respectively • Stro
Slide 6: One off items Fourth quarter 2015
One off items Fourth quarter 2015 The EBITA result has been negatively impacted by two significant one offs in Q4; adding up to SEK 218 M • Divestment of MK Metallkomponenten GmbH – Strategic decision to streamline supply chain and focus on core competencies – Purchase price of SEK 5 M – Divestment
Slide 7: Key restructuring and integration activities
Key restructuring and integration activities Fourth quarter 2015 Medical Systems Finalization of integration of Pulsion Continued shared service center implementation Restructuring activities related to the overall transformation program • Restructuring Total Q4 restructuring cost amounts to
Slide 8: FDA Update
GETINGE GROUP FDA Update
Slide 9: FDA – Consent Decree Update
FDA – Consent Decree Update • Successful FDA inspection in Merrimack, New Hampshire, USA – no observations • Third party inspections 2015 • Hudson – completed in Q2 • Merrimack – completed in Q2 • Wayne, NJ, USA – completed in Q3 • Hechingen/Rastatt, Germany – completed in Q4 • Inspection resulting
Slide 10: FDA Financial impact – Operating Profit
FDA Financial impact – Operating Profit First quarter 2015 SEK Million EBITA result -50 • A total of SEK 40 M was charged to the quarter related to loss of revenue and Restructuring charges -50 higher costs Operating profit -100 • The total financial impact on operating Second quarter 2015 profit 20
Slide 11: FDA Update Remediation Program Provision
FDA Update Remediation Program Provision FDA 2014 SEK Million Provision 1st quarter 799 Additional provision, 4th quarter 175 Currency effect 21 • SEK 79 M was utilized during TOTAL 995 the quarter Completed remediation activities 2014, provisions utilized -470 Closing balance December 31st, 2014 52
Slide 12: Financials
GETINGE GROUP Financials
Slide 13: Getinge Group Financial Summary
Getinge Group Financial Summary SEK M Q4 Q4 Change Jan-Dec Jan-Dec Change 2015 2014 % 2015 2014 % Net Sales 9 417 8 458 11,3 30 235 26 669 13,4 • Gross margin decline by 2,2 Organic 4,3 1,8 percentage points - mainly relating to negative currency transaction effects, FX-effects 7,6 11,9 FDA effects
Slide 14: FX effects Q4
FX effects Q4 Transaction Translation SEK M Total effects effects Gross profit -73 327 254 EBITA -73 180 107 EBIT -73 157 84 Profit before tax -73 135 62 14
Slide 15: FX effects FY 2015
FX effects FY 2015 Transaction Translation SEK M Total effects effects Gross profit -273 1 486 1 213 EBITA -273 507 234 EBIT -273 302 29 Profit before tax -273 205 -68 15
Slide 16: Financials Q4
Financials Q4 2015 2014 Q4 Q4 Cash flow from operation, SEK million 1 483 1 376 Cash conversion, % 68,5 65,6 • Improved cash conversion from operations Net Debt, SEK million 22 867 22 541 Equity, SEK million 19 593 18 694 Equity/assets ratio, % 36,8 35,4 Net debt/equity ratio, multiple 1,17 1,21 16
Slide 17: Outlook
GETINGE GROUP
Slide 18: Outlook
Outlook • Volume growth is deemed to be positive in 2016. • The financial consequences of the Consent Decree with the FDA, excluding the costs for the remediation program, are deemed to decline in 2016 compared with 2015 and are expected to have a negative impact of approximately SEK 130 M on the Gr
Slide 19: Getinge Group
GETINGE GROUP
Slide 20: 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 21: 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 21