Getinge AB Class B · OMXSTO:GETI_B
Getinge AB Class B — Q1 2016 Earnings Presentation
18 slides from Getinge AB Class B's earnings presentation, Apr 22, 2016
Slide 1: Q1 Report January – March 2016
Q1 REPORT JANUARY – MARCH 2016 A L E X M Y E R S , C E O & P E R N I L L E FA B R I C I U S , C F O APRIL 22, 2016 Page 1
Slide 2: Overview: General Business
OVERVIEW GENERAL BUSINESS ALEX MYERS, CEO Page 2
Slide 3: Q1 in Brief
Q1 IN BRIEF T R A N S F O R M AT I O N P R O G R A M U P A N D R U N N I N G W I T H C O S T I M P R O V E M E N T S • Transformation program in line with plan • Operationally from three business areas to one Getinge • Efficiency enhancements starting to show effect • Lower admin and sales cost, -4,
Slide 4: Top Line Development
TOP LINE DEVELOPMENT ORDER INTAKE MSEK MSEK O R D E R S A N D S A L E S B E L O W E X P E C TAT I O N S 9 000 8 281 8 394 30 800 7 582 7 502 7 408 8 000 7 024 7 156 7 057 30 600 7 000 30 400 • Order intake -2,0 % (organic) 6 000 5 000 30 200 30 000 • SW -4,7%, ACT, 2,0%, PPAC -4,6% 4 000 3 000 29 80
Slide 5: Transformation Program Update
TRANSFORMATION PROGRAM UPDATE T R A N S F O R M AT I O N I N L I N E W I T H P L A N • New organization in place • Operationally now acting as one Getinge • BIG 5 according to plan • Savings amounted to SEK 75-80 M in Q1 • Lower administration costs • Reducing overhead cost as a consequence of tappi
Slide 6: FDA & Remediation Program Update
FDA & REMEDIATION PROGRAM UPDATE FOCUS ON IMPROVEMENT PLAN IN HECHINGEN • High activity and focus on Hechingen • Change in leadership, task force of experts in place • Several initiatives ongoing and improvement plan in place • Revised plan awaiting decision from the FDA • Successful certification i
Slide 7: Overview: Financials
OVERVIEW FINANCIALS P E R N I L L E FA B R I C I U S , C F O Page 7
Slide 8: Income Statement
INCOME STATEMENT L O W E R S A L E S C O M P E N S AT E D B Y C O S T R E D U C T I O N S • Net sales decreased by 5.0% (org. -3,2 %) Q1 Q1 Q1 M SEK 2 0 16 2016* 2015 Change % • Selling and admin expenses decreased by SEK 128 M Net Sales 6 377 6 497 6 712 -5,0% To tal Co st o f Go o ds/Services so l
Slide 9: Orders & Net Sales
ORDERS & NET SALES M I X E D D E V E L O P M E N T S E E N B Y R E G I O N A S W E L L A S P R O D U C T C AT E G O R Y Business Category Unit - Organic Regional - Organic Q1 Q1 Q1 Q1 O rde r Int a k e , e xt e rna l 2 0 16 2015 % O rde r Int a k e , e xt e rna l 2 0 16 2015 % Surgical Wo rkflo ws 2
Slide 10: Product Segmentation
PRODUCT SEGMENTATION P O S I T I V E M A R G I N D E V E L O P M E N T I N PAT I E N T & P O S T - A C U T E C A R E A c t ua l Q 1 2 0 16 Q12015* Q 1 2 0 16 Q12015* Q 1 2 0 16 Q12015* Q 1 2 0 16 Q12015* Q 1 2 0 16 Q12015* P a t ie nt & P o s t - A c ut e S e gm e nt O v e rv ie w, m S E K S urgic a
Slide 11: Cash Flow
CASH FLOW CASH CONVERSION IMPROVED TO 75,5 % Q1 Q1 M SEK 2 0 16 2015 EB ITDA 928 937 • Operating cash flow increased by SEK 46 M in Q1 Restructuring co st expenses -72 -84 F ina nc ia l it e m s - 15 9 -189 compared to LY, in total amounting SEK 700 M (+7.0%) T a xe s pa id - 16 1 -272 C a s h f lo
Slide 12: Balance Sheet
BALANCE SHEET FOCUS ON NET DEBT REDUCTION A ssets, 2 0 16 2015 M SEK 3 1- M a r 31-M ar Intangible assets 2 6 17 1 27 989 Capitalised Develo pment P ro jects 3 805 3 589 • Equity/asset ratio 36.5% (33.4%) Tangible fixed assets 4 497 5 047 Financial fixed assets 1 469 1662 • Equity per share SEK 80.2
Slide 13: Outlook
OUTLOOK ALEX MYERS, CEO Page 13
Slide 14: Outlook
OUTLOOK GETINGE GROUP • Revenue growth is deemed to be positive in 2016. • The financial consequences of the Consent Decree with the FDA are expected to have a negative impact of approximately SEK 130 M on the Group’s 2016 operating profit. Getinge is awaiting the FDA’s decision of the remediation p
Slide 15: Summary
SUMMARY 1 ST Q U A R T E R I N T H E 3 - 4 Y E A R T R A N S F O R M AT I O N P R O C E S S • Transformation program in line with plan • Efficiency enhancements starting to show effect • Order intake and net sales below expectations – actions taken • Strong product pipeline • Focus on Quality Manage
Slide 16: Q&A
GETINGE GROUP Q&A
Slide 17: 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 18: Thank You
GETINGE GROUP THANK YOU