Slide 1: Continued strong organic growth – Q2 Report 2018
Continued strong organic growth Q2 Report 2018 Mattias Perjos, President and CEO Lars Sandström, CFO July 17, 2018
Slide 2: Q2 2018 in brief
Q2 2018 in brief GETINGE 3
Slide 3: Strong organic growth – both in orders and net sales
Strong organic growth – both in orders and net sales Takeaways from Q2 2018 • Order intake increased by 10.2% organically • Net sales increased by 6.0% organically • Strong growth in capital goods and emerging markets, which is natural in an intense growth phase, expected to support recurring revenu
Slide 4: Continued progress according to plan
Continued progress according to plan Key activities in Q2 Growth Systematic sales approach to support growth in all Business Areas and regions Innovation Updates and launches in products, services and solutions within all Business Areas Quality Continued roll out of the QMS and remediation related t
Slide 5: Strong sales growth in all regions and Business Areas
Strong sales growth in all regions and Business Areas Continued positive momentum in capital goods and emerging markets • Emerging markets and capital goods is driving growth • Life Science and Surgical Workflows growing faster than Acute Care Therapies Americas EMEA APAC Global • No general changes
Slide 6: Contribution in order intake Q2 2018
Contribution in order intake Q2 2018 Organic growth in all Business Areas 372 112 110 6,117 MSEK 5,523 Q2 2017 Acute Care Therapies Life Science Surgical Workflows Q2 2018 Org change, % + 3.5% + 20.3% + 18.5% + 10.2% Page 6
Slide 7: Contribution in net sales Q2 2018
Contribution in net sales Q2 2018 Strong organic growth in both Life Science and Surgical Workflows +40 164 Currency impact, MSEK 144 54 12.7 5,731 Organic growth, % MSEK 5,369 1.8 Q2 2017 Acute Care Life Science Surgical Workflows Q2 2018 Capital Consumables Therapies Org change, % +1.5% +32.7% +7.
Slide 8: Gross Margin development Q2 2018
Gross Margin development Q2 2018 Product and market mix and currency impacting negatively 22 Gross margin impact -30 24 Volume 2,844 MSEK 2,828 Currency Product mix Regional mix Q2 2017 Acute Care Life Science Surgical Workflows Q2 2018 Therapies Adj. Gross margin, % 59.0 35.6 39.0 49.6 (Q2 2017) (6
Slide 9: Financial development
Financial development Page 9
Slide 10: Adjusted EBITA Bridge Q2 2017 – Q2 2018
Adjusted EBITA Bridge Q2 2017 – Q2 2018 -164 - 69 -42 -12 Currency impact, MSEK -88 -22 MSEK 702 538 Q2 2017 Acute Care Life Science Surgical Workflows Group functions Q2 2018 Therapies and other (incl eliminations) Page 10
Slide 11: Adjusted EBITA Bridge Q2 2017 – Q2 2018
Adjusted EBITA Bridge Q2 2017 – Q2 2018 13.1% Margin decrease 3.7% 9.4% -164 -1.3pp Currency -2.1pp GP Margin 16 -57 -0.6pp OpEx +0.3pp Depreciation -99 -27 3 MSEK 702 538 Q2 2017 Gross profit Selling Admin R&D Other Q2 2018 Page 11
Slide 12: Financial Position
Financial Position Currency impacting net debt • Working Capital impacted by building Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec inventory due to growth in top-line SEK M 2018 2017 2018 2017 2017 • The fine of SEK 276 M related to Cash flow before changes in working capital 440 925 712 1,719 3,653 inve
Slide 13: Outlook
Outlook GETINGE 3
Slide 14: Outlook 2018
Outlook 2018 Earlier outlook within brackets • Organic sales growth is expected to be well within 2-4% (slightly positive) in 2018 • Currency transaction effects FY 2018 are expected to have a negative impact of approximately SEK -175 M (-150) on EBIT Page 14
Slide 15: Summary
Summary GETINGE 3
Slide 16: Summary – key takeaways
Summary – key takeaways 2nd Quarter 2018 • Strong organic growth • Gross margin adversely impacted by product and regional mix and currency • OPEX flattening out vs Q1 • SEK -69 M currency impact on EBITA adjusted • Agreement with Brazilian authority • Product launches, such as Flow-c in Acute Care
Slide 17: Q&A
Q&A cage 17 GETINGE 3
Slide 18: Thank you
Thank you GETINGE 3
Slide 19: Appendix – Business Information
Appendix – Business Information Page 19
Slide 20: Leading positions in well defined segments
Leading positions in well defined segments Enabling better healthcare to more patients with the same resources Hospital products used in 170 BSEK Addressable market CSSD* 2-4% 90% Cath Lab Operating Room ICU Endo suite Organic growth in Hospitals represent 90 % of sales, addressable market 10% goe
Slide 21: Three business areas in brief
Three business areas in brief And key financials for 2017 Acute Care Therapies Life Science Surgical Workflows Advanced life supporting Solutions for sterile R&D and Leading technology for therapies in acute care production (BioPharma, Labs operating rooms and sterile hospitals & Medical Device) sup
Slide 22: Recap – the building blocks of our turn around
RECAP Recap – the building blocks of our turn around Effective and sustainable change should follow Strategy-Structure-Systems-Skills wave iteration Strategy Structure Systems Skills BA’s with full P&L visibility and Simplify KPI’s – fewer and KEY Internal creation = Internal buy in. accountability
Slide 23: Recap - Turn around towards sustainable profitable growth
RECAP Recap - Turn around towards sustainable profitable growth 10+1 Key steps in order of priority (and pace dictated by management bandwidth) 1. Culture (and strategy). Culture more important than strategy long term. Needs to start day 1. Focus 2017 Continues Aligned with strategy, which was updat
Slide 24: Production
Production 20 production units in 8 countries Sweden Solna – Ventilators and anesthesia machines Växjo – Disinfection equipment Getinge – Sterilization equipment China Germany Suzhou – Surgical tables, cardiovascular Hechingen – Consumables for perfusion products products, and disinfection and steri
Slide 25: Our 10 largest markets 2017
Our 10 largest markets 2017 35,0% 6,7% 5,5% 5,3% 4,6% 3,8% 2,9% 2,8% 2,5% 2,2% USA Germany China Japan France Great Britain Australia Italy Sweden India
Slide 26: 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 27: Getinge – Passion for Life
Se A GETINGE PASSION FOR LIFE