Slide 1: Q2 Report 2021: Strong recovery in products for surgery
Q2 Report 2021 “Strong recovery in products for surgery” Mattias Perjos, President and CEO Lars Sandström, CFO July 16, 2021
Slide 2: Key takeaways – a strong quarter from a financial perspective
Key takeaways – a strong quarter from a financial perspective Q2 2021 • Organic growth in sales • Improved margins • Strong Free Cash Flow • Solid financial position 56 20.9 53.6 29,571 54 52 25,000 15 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2
Slide 3: Order trends continue to converge (except in Life Science)
Order trends continue to converge (except in Life Science) Q1 2020-Q2 2021 Critical Care and Decisions to ramp up capacity in advance ICU- ventilators and ECMO Cardiopulmonary Reached the goal to deliver 26,000 (~50% of sales in Acute Care advanced ICU ventilators in 2020 Therapies before COVID-
Slide 4: Expected net sales trends 2021 in relation to 2019
Expected net sales trends 2021 in relation to 2019 A strong H1 due to a tail of COVID demand for ventilators, Cardiovascular comeback and growth in ECMO & Life Science Cardiopulmonary Production capacity increase in ECMO therapy products in H1, demand expected to stay at the new, higher level for
Slide 5: Outlook 2021: Net sales
Outlook 2021 Net sales is expected to be at least 27 BSEK Getinge Q2 Report 2021 July 16, 2021 Page 5
Slide 6: Key activities and events
Key activities and events Q2 2021 Launches and other activities The improvement journey continues • 510(k) clearance by FDA for three products • Consolidation of operations in New Jersey, US strengthening the offering of advanced ICU Servo - Moving ahead according to plan Ventilators in the US - Exp
Slide 7: Organic net sales growth in Q2
Organic net sales growth in Q2 Life Science, ECMO, Cardiovascular products and tail of COVID demand on ventilators explaining Y-o-Y growth Global Americas EMEA APAC Organic Order Growth -6.1% Organic Net Sales Growth +3.6% Getinge Q2 Report 2021 July 16, 2021 Page 7
Slide 8: Strong organic order growth in Life Science and Surgical Workflows
Strong organic order growth in Life Science and Surgical Workflows Order Intake – Bridge Q2 2020 – Q2 2021 Organic change -20.7% +27.9% +18.8% -6.1% 199 154 MSEK 8,081 -1,500 6,934 6,787 Q2 2019 Q2 2020 Acute Care Life Science Surgical Q2 2021 Therapies Workflows Getinge Q2 Report 2021 July 16, 2021
Slide 9: Acute Care Therapies still growing despite lower sales of ventilators
Acute Care Therapies still growing despite lower sales of ventilators Net Sales – Bridge Q2 2020 – Q2 2021 Organic change +1.3% +36.5% -3.2% +3.6% 184 -370 -198 - 642 Currency impact, MSEK 18.5 MSEK Organic growth, % 6,971 6,587 6,277 Q2 2019 Q2 2020 Acute Care Life Science Surgical Q2 2021 -11.9 Th
Slide 10: Margin improvement in all business areas
Margin improvement in all business areas Adjusted Gross Profit – Bridge Q2 2020 – Q2 2021 Adj GM, % Q2 2021 64.1 41.6 41.6 55.0 (Q2 2020) (63.1) (40.9) (36.6) (53.4) (Q2 2019) (58.8) (36.4) (37.5) (49.4) 82 16 Gross Margin impact -196 Volume MSEK 3,723 Product mix 3,624 Service and factory 3,101 abs
Slide 11: Financial development
Financial development Getinge Q2 Report 2021 July 16, 2021 Page 11
Slide 12: Gross Profit effect taking adj EBITA margin to 19.0 %
Gross Profit effect taking adj EBITA margin to 19.0 % Adjusted EBITA – Bridge Q2 2020 – Q2 2021 19.0% Margin improvement +1.9 pp GP 17.5% -0.7 pp OPEX +0.9 pp D&A -0.6 pp Currency +2.6% 72 72 3 0 -16 MSEK -99 - 161 Currency impact, MSEK 1,218 1,250 591 Q2 2019 Q2 2020 Adj Gross Adj Selling Adj Admin
Slide 13: The strong SEK Y-o-Y is having material impact in Q2
The strong SEK Y-o-Y is having material impact in Q2 But the Y-o-Y gap is expected to shrink in the second half of 2021 Examples on currency pairs having a negative impact USD/SEK EUR/SEK USD/EUR Portfolio volatile currencies/SEK* 9.8 -13.1% 10.8 0.92 -8.6% 100 -5.0% -11.6% 9.4 10.6 95 0.88 9.0 10.4
Slide 14: Strong free cash flow, improved working capital and increasing ROIC
Strong free cash flow, improved working capital and increasing ROIC Continued efficiency enhancements Strong Free Cash Flow Improvement of WC days Improved Return on Invested Capital 140 39 days 21.8% 130 120 110 2.3 2.0 100 1.6 7.5% 1.4 90 1.2 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q4 2017 Q1 20
Slide 15: Strong funding and cash position
Strong funding and cash position Improved net debt … … and leverage 14.0 3.4 3.5 BSEK in cash (Jun 30) 0.7 5.3 (0.3x excluding pension liabilities) 19-Sep 20-Sep 19-Mar 19-Jun 20-Mar 20-Jun 21-Mar 21-Jun 19-Dec 20-Dec 19-Sep 20-Sep 19-Mar 19-Jun 20-Mar 20-Jun 21-Mar 21-Jun 19-Dec 20-Dec Net debt, BS
Slide 16: Summary
Summary Getinge Q2 Report 2021 July 16, 2021 Page 16
Slide 17: Key takeaways
Key takeaways Summary Q2 2021 • Market continues to move towards a new normal, but uncertainty remains • Good activity level and progress on strategy implementation • Improved results from operations and solid financial position • Our outlook for 2021 is unchanged – at least 27 BSEK in Net Sales Get
Slide 18: Q&A
Q&A Getinge Q2 Report 2021 July 16, 2021 Page 18
Slide 19: Thank you
Thank you Getinge Q2 Report 2021 July 16, 2021 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 – Passion for Life
Se a GETINGE PASSION FOR LIFE