Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Berenberg USA Conference 2018
31 slides from Getinge Ab Class B's conference presentation, May 2018
Slide 1: Berenberg USA Conference 2018
Berenberg USA Conference 2018 Mattias Perjos, President and CEO Lars Sandström, CFO May, 2018
Slide 2: Business overview
Business overview cage GETINGE 3
Slide 3: 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 4: Recap of the turnaround
Recap of the turnaround Page 4
Slide 5: 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 6: 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 7: Q1 2018 in brief
Q1 2018 in brief GETINGE 3
Slide 8: Strong growth – both in orders and net sales
Strong growth – both in orders and net sales Takeaways from Q1 2018 • • • • • Order intake increased by 3.1% organically Net sales increased by 5.4% organically Adjusted EBITA amounted to SEK 301 M (485) Adjusted EBITA impacted by SEK -125 M in currency effects Adjusted earnings per share amounted t
Slide 9: Key activities
Key activities In the 1st quarter 2018 • Sales and customer oriented approach • FDA-remediation continues • Provision of SEK 350 M related to ongoing investigations in Brazil • Updates and launches in products, services and solutions • Paul Marcun was appointed President of the Surgical Workflows bu
Slide 10: Market development
Market development Positive momentum in emerging markets • Growth momentum in Americas and APAC • Emerging markets is a key driver • Customers’ budget tightening Americas EMEA APAC Global affects demand in mature markets Organic OI +4.1 -3.1 +15.1 +3.1 Organic NS +9.4 -0,2 +7.1 +5.4 Page 10
Slide 11: Financial development
Financial development Page 11
Slide 12: Underlying development
(You can find this table on page 3 in the Interim Report) Underlying development Jan-Mar Jan-Mar Jan-Dec SEK M 2018 2017 2017 Negative impact from currency and higher OPEX Net sales 4,868 4,811 22,495 Adjusted gross profit 2,588 2,610 11,652 Margin, % 53.2 54.3 51.8 Adjusted operating expenses -1,99
Slide 13: Adjusted EBITA Bridge Q1 2017 – Q1 2018
Adjusted EBITA Bridge Q1 2017 – Q1 2018 -125 -184 -22 -39 Currency -14 -48 impact, MSEK -61 MSEK 485 301 Q1 2017 Gross profit Selling Admin R&D Other Q1 2018 Page 13
Slide 14: Adjusted EBITA Bridge Q1 2017 – Q1 2018
Adjusted EBITA Bridge Q1 2017 – Q1 2018 -125 -184 -87 Currency -47 impact, MSEK -38 -12 MSEK 485 301 Q1 2017 Acute Care Life Science Surgical Workflows Group functions Q1 2018 Therapies and other (incl eliminations) Page 14
Slide 15: Summary
Summary GETINGE 3
Slide 16: Q&A
Q&A cage 16 GETINGE 3
Slide 17: Thank you
Thank you GETINGE 3
Slide 18: Appendix – Business Information
Appendix – Business Information Page 18
Slide 19: Acute Care Therapies
Acute Care Therapies Business Area Product segments Net Sales 2017 • Critical Care • SEK 12.2 billion • Cardiopulmonary • 54 % of Getinge sales • Cardiac Systems • Vascular Interventions Our position Main competitors • Leading global position. • Medtronic • Top 3 within Cardiac • Hamilton Assist, •
Slide 20: Surgical Workflows
Surgical Workflows Business Area Product segments Net Sales 2017 • Surgical Workplaces • SEK 8.3 billion • Infection Control • 37 % of Getinge sales • Integrated Workflow solutions Our position Main competitors • Among the global • Steris leaders in all product • Stryker segments • HillRom/Trumpf
Slide 21: Life Science
Life Science Business Area Product segments Net Sales 2017 • Research • SEK 1,9 billion (Biomedical & Lab) • 9 % of Getinge sales • Production (BioPharma & Medical Device) Our position Main competitors • Among the global • Steris leaders in all product • Belimed segments • Miele/Steelco
Slide 22: 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 23: Our ten largest markets
Our ten largest markets 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 24: Appendix – Financial Information Q1
Appendix – Financial Information Q1 Page 24
Slide 25: Contribution in order intake Q1 2018
Contribution in order intake Q1 2018 Organic growth in all Business Areas -68 14 3 -218 MSEK 5,379 5,328 Currency impact, MSEK Q1 2017 Acute Care Life Science Surgical Workflows Q1 2018 Therapies Org change, % + 2.9% + 2.4% + 3.6% + 3.1% Page 25
Slide 26: Contribution in net sales Q1 2018
Contribution in net sales Q1 2018 Strong organic growth in both Acute Care Therapies and Surgical Workflows 50 -200 Currency 26 impact, MSEK -19 8.7 4,868 Organic growth, % MSEK 4,811 3.6 Q1 2017 Acute Care Life Science Surgical Workflows Q1 2018 Capital Consumables Therapies Org change, % + 6.2% -
Slide 27: Margin development in Business areas
Margin development in Business areas Decreasing margins mainly due to higher OPEX and currency effects Adjusted EBITA • Acute Care Therapies Jan-Mar Jan-Mar Jan-Dec Negative impact from currency SEK M 2018 2017 2017 and higher R&D and Quality Acute Care Therapies 470 557 2,500 expenses Margin, % 16.
Slide 28: Financial Position
Financial Position Solid position but impacted by lower earnings in Q1 • Impacted by lower earnings Jan-Mar Jan-Mar Jan-Dec SEK M 2018 2017 2017 • Working Capital decreased due to lower Cash flow before changes in working capital 272 794 3,653 accounts receivables Changes in working capital 26 74 -8
Slide 29: Outlook 2018
Outlook 2018 Earlier outlook within brackets • Organic sales growth is expected to be slightly positive in 2018 • Currency transaction effects FY 2018 are expected to have a negative impact of approximately SEK -150 M (-100) on EBIT Page 29
Slide 30: 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 31: GETINGE
Se A GETINGE PASSION FOR LIFE