Slide 1: Q1 Report 2019
Q1 Report 2019 Mattias Perjos, President and CEO Lars Sandström, CFO April 23, 2019
Slide 2: Key takeaways – performance
Key takeaways – performance Q1 2019 +3.0 pp • Sales growth continues 47.9 48.0 50.9 Adj Gross Margin, % • Positive growth outlook • Gross Margin improved sequentially Q3 2018 Q4 2018 Q1 2019 • Improved adj EBITA Margin Y-o-Y +0.5 pp • Positive development on Working Capital and stable Cash Flow 6.2
Slide 3: Key takeaways – events
Key takeaways – events Q1 2019 • Restructuring activities to reduce expenses and improve productivity - Restructuring cost of SEK 108 M in the quarter - Margin contribution is expected to start to show on P&L from H2 2019 • No new material information on Brazil, Mesh litigations and FDA Warning Lett
Slide 4: Organic growth continues
Organic growth continues Order Intake and Net Sales growth in all regions and business areas Americas EMEA APAC Global Order Intake +7.6% Net Sales +6.0% Getinge Q1 Report 2019 April 23, 2019 Page 4
Slide 5: Contribution in Order Intake Q1 2019
Contribution in Order Intake Q1 2019 Strong organic growth in all Business Areas Organic change +8.2% +8.7% +6.4% +7.6% 244 90 511 6,173 5,328 MSEK Q1 2018 Acute Care Therapies Life Science Surgical Workflows Q1 2019 Getinge Q1 Report 2019 April 23, 2019 Page 5
Slide 6: Contribution in Net Sales Q1 2019
Contribution in Net Sales Q1 2019 Organic growth in all business areas – capital goods growing 10 pp faster than consumables Organic change +7.7% +7.0% +2.4% +6.0% 66 144 +389 Currency impact, MSEK 470 12.4 5,548 Organic growth, % 4,868 MSEK 2.4 Q1 2018 Acute Care Life Science Surgical Workflows Q1
Slide 7: Gross Margin development Q1 2019
Gross Margin development Q1 2019 Margin supported by volume growth but negatively impacted by currency effects and product mix Adj GM, % Q1 2019: 58.6 40.0 39.3 50.9 (Q1 2018): (61.5) (42.1) (41.2) (53.2) 17 27 Gross Margin impact Volume 193 IFRS 16 2,825 2,588 Currency MSEK Product mix Regional mix
Slide 8: Financial development
Financial development Getinge Q1 Report 2019 April 23, 2019 Page 8
Slide 9: Adjusted EBITA Bridge Q1 2018 – Q1 2019
Adjusted EBITA Bridge Q1 2018 – Q1 2019 6.2% Margin increase 0.5 pp 6.7% +68 +0.5 pp Currency -2.7 pp GP -28 +2.5 pp OPEX +0.2 pp Depreciation -64 -23 -54 237 301 369 MSEK Q1 2018 Gross profit Selling Admin R&D Other incl D&A Q1 2019 of intangible and tangible assets Getinge Q1 Report 2019 April 23,
Slide 10: Adjusted EBITA Bridge Q1 2018 – Q1 2019 by segment
Adjusted EBITA Bridge Q1 2018 – Q1 2019 +68 -11 + 40 Currency -30 -19 impact, MSEK 128 369 MSEK 301 Q1 2018 Acute Care Life Science Surgical Workflows Common Group Q1 2019 Therapies Functions and other (incl eliminations) Getinge Q1 Report 2019 April 23, 2019 Page 10
Slide 11: Control on OPEX
Control on OPEX FTE’s and OPEX in relation to Net Sales continue to move in a positive direction Decreasing number of FTE’s Decreasing adj OPEX in relation to Net Sales 10,900 34.0 10,800 -421 FTE 33.5 10,700 10,600 33.0 10,500 32.5 10,400 32.0 10,300 10,200 400 2.5 300 200 2.0 18-Sep Q1 2018 Q2 201
Slide 12: Stable cash flow development
Stable cash flow development Q1 2019 • Cash flow positively impacted by increasing profit Jan-Mar Jan-Mar Jan-Dec • Working Capital is stable vs. previous year SEK M 2019 2018 2018 despite strong growth in net sales Cash flow before changes in working capital 356 272 2,641 Changes in working capital
Slide 13: Stable cash flow development – working capital
Stable cash flow development Working Capital is declining in days and in absolute terms Working Capital Days continue to improve Working Capital is decreasing despite strong sales growth 135 6.0 130 125 120 115 5 0 18-Sep 18-Mar 19-Mar 18-Jun 17-Dec 18-Dec -2.0 Working Capital growth, Net Sales grow
Slide 14: Outlook
Outlook Getinge Q1 Report 2019 April 23, 2019 Page 14
Slide 15: Outlook 2019
Outlook 2019 2-4% Organic Net Sales Growth Getinge Q1 Report 2019 April 23, 2019 Page 15
Slide 16: Summary
Summary Getinge Q1 Report 2019 April 23, 2019 Page 16
Slide 17: Key takeaways
Key takeaways Summary Q1 2019 • Sales growth continues • Positive growth outlook • Gross Margin improved sequentially • Improved adj EBITA Margin Y-o-Y • Positive development on Working Capital and stable Cash Flow • Restructuring activities expected to start support margins from H2 2019 Getinge Q1
Slide 18: Q&A
Q&A Getinge Q1 Report 2019 April 23, 2019 Page 18
Slide 19: Thank you
Thank you Getinge Q1 Report 2019 April 23, 2019 Page 19
Slide 20: Forward looking information
Forward looking information This document contains forward-looking information based on the current expectations of the Getinge’s management. Although management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectation
Slide 21: GETINGE
Se a GETINGE PASSION FOR LIFE