Getinge AB Class B · OMXSTO:GETI_B
Getinge AB Class B — Q3 2015 Earnings Presentation
21 slides from Getinge AB Class B's earnings presentation, Oct 15, 2015
Slide 1: Interim Report January – September 2015
Interim Report January – September 2015 Alex Myers, CEO and Ulf Grunander, CFO October 15th, 2015
Slide 2: Summary: A quarter of high activity
Getinge Group Summary A quarter of high activity focused on both short term and long term activities Short term Long term • Strong focus on delivering healthy order • Launch of transformation plan consisting pipeline to deliver on 2015 plan of three areas; Big 5 for margin • Focus on cost containmen
Slide 3: Getinge Group: Strong order intake
Getinge Group Strong order intake Positive order intake Q3, 2015 Q3, 2014 Change % • Good organic order intake 5,2 % Order intake 7 398 6 414 15,3 % • Healthy development in both capital equipment Organic, % 5,2% -0,2% and recurring items • Growth in all three regions Net sales 6 925 6 225 11,2% •
Slide 4: Medical Systems Business Area: Positive order intake
Medical Systems Business Area Positive order intake Overall strong order intake Q3, 2015 Q3, 2014 Change % • Strong performance within Cardiovascular & Surgical Workplaces • Positive development in both WE & NA Order intake 3 946 3 388 16,5% • RoW grew by a solid 8,8 % Organic, % 5,9% 1,6% Decli
Slide 5: Extended Care Business Area: Weak quarter following a strong Q2
Extended Care Business Area Weak quarter following a strong Q2 Decline in order intake Q3, 2015 Q3, 2014 Change % • Weak development in all regions • Challenges in several key markets Order intake 1 849 1 756 5,3% • Main drivers are continued weak development in the rental business & a weak quarte
Slide 6: Infection Control Business Area: Solid quarter with very strong order intake
Infection Control Business Area Solid quarter with very strong order intake Strong order intake Q3, 2015 Q3, 2014 Change % • Positive development in all regions • RoW and NA growing by 29,9 % and 16,5 % respectively Order intake 1 603 1 270 26,2% • Strong performance of Life Science and recurring
Slide 7: Key Restructuring and Integration Activities Third Quarter 2015
Key Restructuring and Integration Activities Third Quarter 2015 Medical Systems Payment to US Government – Consent Decree Efficiency enhancements within R&D function - discontinuation of R&D center in San Jose, CA, US Integration of Pulsion Reorganization within the Cardiovascular division
Slide 8: FDA Update
GETINGE GROUP FDA Update
Slide 9: FDA – Consent Decree Update
FDA – Consent Decree Update • Third party inspections • Hudson – completed in Q2 • Merrimack – completed in Q2 • Wayne, NJ, USA – completed in Q3 • Hechingen, Germany – ongoing • Financial impact in Q3 – SEK 100 M • SEK 50 M EBITA • SEK 50 M restructuring cost (payment to the US government) • Full-s
Slide 10: FDA: Financial impact – Operating Profit
FDA Financial impact – Operating Profit First quarter 2015 SEK Million • A total of SEK 100 M was charged to the quarter EBITA result -50 • SEK 50 M for loss of revenue Restructuring charges -50 and higher costs Operating profit -100 • SEK 50 M for a payment to the Second quarter 2015 US government
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 47 M was utilized during the quarter TOTAL 995 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 Q3 Q3 Change Jan-Sep Jan-Sep Change 2015 2014 % 2015 2014 % Net Sales 6 925 6 225 11,2 20 818 18 184 14,5 • Gross margin decline by 2,1 % Organic 1,1 0,7 mainly relating to negative currency transaction effects (130 basic points), FX-effects 10,7 13,9 low sales
Slide 14: FX effects Q3
FX effects Q3 Transaction Translation SEK M Total effects effects Gross profit -93 289 196 EBITA -93 80 -13 EBIT -93 24 -69 Profit before tax -93 1 -92 14
Slide 15: FX effects FY 2015
FX effects FY 2015 Transaction Translation SEK M Total effects effects Gross profit -270 1 535 1 265 EBITA -270 520 250 EBIT -270 320 50 Profit before tax -270 220 -50 15
Slide 16: Financials Q3
Financials Q3 2015 2014 Q3 Q3 Cash flow from operation, SEK million 724 742 • Improved cash conversion from operations Cash conversion, % 69,0 60,7 • Strong balance sheet with Net Debt, SEK million 23 525 21 360 equity ratio of 35,2 % and net debt/equity ratio of 1,25 Equity, SEK million 18 855 16 7
Slide 17: Outlook
GETINGE GROUP
Slide 18: Updated Outlook 2015
Updated Outlook 2015 • Organic revenue growth is expected to improve in 2015 • The outcome of the ongoing discussions with the US FDA is expected to have a negative financial impact of approx. SEK 375 M on operating profit for 2015 (instead of SEK 500 M as previously communicated). • FX effects are
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