Getinge AB Class B · OMXSTO:GETI_B
Getinge AB Class B — Q3 2016 Earnings Presentation
29 slides from Getinge AB Class B's earnings presentation, Oct 18, 2016
Slide 1: Q3 Report
Q3 REPORT J O A C I M L I N D O F F, C E O & R E I N H A R D M A Y E R , C F O OCTOBER 18, 2016
Slide 2: Overview: General Business
OVERVIEW GENERAL BUSINESS J O A C I M L I N D O F F, C E O
Slide 3: Q3 in Brief
Q3 IN BRIEF A Q U A R T E R W I T H K E Y S T R AT E G I C D E C I S I O N S • Organic top line growth: Negative order intake and flat net sales • Gross Margin: Margin up 0.5 pp due to currency effects and positive product mix • EBITA-growth*: +16.3% to SEK 963 M (828) • Restructuring costs: Increas
Slide 4: Top Line Development
TOP LINE DEVELOPMENT C H A L L E N G I N G O R D E R I N TA K E D U R I N G T H E Q U A R T E R • Organic order intake –3.2% • Negative organic order growth in all BCU’s • Stable growth in EMEA while negative development in both APAC and Americas • Organic Net sales +0.2 % • Growth in ACT while decl
Slide 5: BCU Update – Surgical Workflows
BCU UPDATE – SURGICAL WORKFLOWS L O W E R S A L E S C O M P E N S AT E D B Y C O N T I N U E D C O S T R E D U C T I O N S Q3 2016 Q3 2015 YTD 2016 YTD 2015 • Weak order intake development Segment Overview, mSEK Surgical Workflows % Surgical Workflows % Order Intake, external 2 710 2 733 -0,8% 7 656
Slide 6: BCU Update – Acute Care Therapies
BCU UPDATE – ACUTE CARE THERAPIES BETTER MARGINS DUE TO GOOD COST CONTROL Q3 2016 Q3 2015 YTD 2016 YTD 2015 • Order intake decrease Segment Overview, mSEK Acute Care Therapies % Acute Care Therapies % Order Intake, external 2 728 2 816 -3,1% 8 567 8 482 1,0% • Organic growth of -4.1% with decline in
Slide 7: BCU Update – Patient & Post-Acute Care
BCU UPDATE – PATIENT & POST-ACUTE CARE U N FAV O R A B L E P R O D U C T M I X D E C R E A S I N G T H E G P M A R G I N Q3 2016 Q3 2015 YTD 2016 YTD 2015 • Order intake down 4,9% (org) Segment Overview, mSEK Patient & Post-Acute % Patient & Post-Acute % Order Intake, external 1 738 1 848 -6,0% 5 33
Slide 8: FDA & Remediation Update
FDA & REMEDIATION UPDATE I M P R O V E M E N T W O R K AT H E C H I N G E N C O N T I N U E D AT T H E S A M E R O B U S T R AT E • Intense work has been carried out on activities under the improvement plan during the quarter • An ongoing dialogue with the FDA – still awaiting response on the plan f
Slide 9: FDA & Remediation Background
FDA & REMEDIATION BACKGROUND 4 L E G A L E N T I T I E S I N P H A S E 1 O F 3 – H A R D T O E S T I M AT E T O TA L C O S T • 4 legal entities covered by the Consent Decree • The Consent Decree consists of 3 phases • All Getinge Group sites are in phase 1 • Annual inspections • The Consent Decree w
Slide 10: Focused Strategy
FOCUSED STRATEGY BUILD ON SOURCES OF STRENGTHS • Strategic review clarifying long-term strategy for the company • Build on core competences to drive sustainable and profitable growth • Focus needed • Surgical Workflows • Acute Care Therapies • Patient & Post-Acute Care
Slide 11: Focus on ACT and SW
FOCUS ON ACT AND SW TWO AREAS OF FOCUS 1 2 Acute Care Therapies Surgical Workflows Cardiovascular and Respiratory Hospital Infrastructure and Services Improve outcome via cardiovascular and respiratory Value Offer integrated solutions to meet customer needs in therapies to offer superior therapies i
Slide 12: Focus on PPAC
FOCUS ON PPAC B U I L D O N S O U R C E S O F S T R E N G T H S – A S A L I S T E D C O M PA N Y 3 • Based on a corporate wide strategic Patient & Post-Acute Care assessment, the Board of Directors has Integrated and effective solutions for mobility tasked the management of Getinge Group to: • Prepa
Slide 13: Patient & Post-Acute Care Product Portfolio
PATIENT & POST-ACUTE CARE PRODUCT PORTFOLIO – STRONG GLOBAL MARKET POSITIONS Pressure Safe Patient VTE Clinical Ulcer Service Diagnostics Handling Prevention Services Prevention Solutions Medical Beds DVT Pumps and Service and Cardiovascular Patient Lifts Garments Repair Dopplers Rental Services Obs
Slide 14: Transformation Program
TRANSFORMATION PROGRAM CONTINUES BUT EXPECTED TO BE AFFECTED BY THE SPLIT • BIG 5 – cost efficiency program • Continued good cost control • Savings amounted to SEK 95-100 M in Q3 • Accumulated savings YTD amounts to SEK 255-270 M • Effects from the distribution of Patient & Post-Acute Care • The cur
Slide 15: Overview: Financials
OVERVIEW FINANCIALS R E I N H A R D M AY E R , C F O
Slide 16: Results
GETINGE GROUP Results
Slide 17: Performance
PERFORMANCE CONTINUED COST REDUCTIONS • Order intake Q3 Q3 Change YTD YTD SEK M 2016 2015 % 2016 2015 Change % • Stable growth in EMEA but decline in both Order intake, SEK M 7 176 7 397 -3,0% 21 560 22 105 -2,5% Americas and APAC Organic -3,2% -0,7% FX-effects 0,0 pp 1,7 pp • All BCU:s down in the
Slide 18: Restructuring Cost
RESTRUCTURING COST S I G N I F I C A N T I N C R E A S E I N R E S T R U C T U RI N G C O S T D U E TO T H R E E FA C TO R S 1. FDA provision SEK 400 M 2. Write-down of capitalized development project SEK 158 M 3. Cost for changes among senior executives SEK 70 M • Earlier FY guidance on Restructuri
Slide 19: FX Effects
FX EFFECTS P O S I T I V E E X C H A N G E R AT E E F F E C T S I N Q 3 Positive effects in the quarter Transaction Translation MSEK effect effect Total • Exchange-rate effects had a Gross Profit 61 - 50 11 positive impact of SEK 32 M on EBITA* 61 - 29 32 EBITA* in the quarter, of which EBIT 61 - 26
Slide 20: Balance Sheet
GETINGE GROUP fe Balance Sheet
Slide 21: Balance Sheet
BALANCE SHEET Assets, 2016 2015 2015 FOCUS ON NET DEBT DEVELOPMENT MSEK 30-Sep 30-Sep 31-Dec Intangible assets 30 697 30 832 30 543 Tangible fixed assets 4 691 4 846 4 699 • Net debt development Financial fixed assets 1 695 1 552 1 374 Inventory 6 139 6 182 5 409 • Adjusted change in net debt for th
Slide 22: Cash Flow
GETINGE GROUP i Cash Flow
Slide 23: Cash Flow
CASH FLOW C A S H F R O M O P E R AT I O N S I M PA C T E D B Y TA X A N D W O R K I N G C A P I TA L R E D U C T I O N S Q3 Q3 YTD YTD FY September 2016, MSEK 2016 2015 2016 2015 2015 • Operating cash flow at SEK 725 M representing a EBITDA 810 1 046 2 773 3 019 5 187 increase by SEK 1 M in Q3 comp
Slide 24: Outlook
GETINGE GROUP - or o .~ OUTLOOK JOACIM LINDOFF, CEO
Slide 25: Outlook Getinge Group 2016
OUTLOOK GETINGE GROUP 2016 • We expect moderately negative growth in organic net sales in 2016 • Currency transaction effects are expected to have positive impact of approximately SEK150 M for 2016 • Restructuring costs for the full-year 2016 are expected to amount to approximately SEK 1 260 M (657)
Slide 26: Summary
GETINGE GROUP SUMMARY
Slide 27: Q&A
GETINGE GROUP Q&A
Slide 28: Thank You
GETINGE GROUP THANK YOU
Slide 29: 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