Slide 1: Capital Markets Day
GETINGE Capital Markets Day January 30th , 2007
Slide 2: ... a rapidly expanding healthcare company
GETINGE ... a rapidly expanding healthcare company
Slide 3: Agenda
BUSINESS AREA INFECTION CONTROL HEALTHCARE AGENDA Review of 2006 Strategic direction Financial targets Group priorities Outlook 2007
Slide 4: Review 2006
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Review 2006
Slide 5: 2006 - a year of investments for a competitive tomorrow
BUSINESS AREA INFECTION CONTROL HEALTHCARE 2006 - a year of investments for a competitive tomorrow: Improved market coverage in developing economies Strengthened market and sales organisations in USA to capture market shares Increased investments in new product development Restructuring of p
Slide 6: Organic order intake 2006
GETINGE BUSINESSGROUP AREA INFECTION CONTROL FINANCIALS HEALTHCARE Organic order intake 2006 By Business Area Medical Systems 13,5 % Infection Control 6,1 % Extended Care 1,3 % 7,2 %* Total Group 8,0 % 9,6 %* By geography West Europe 8,2 % North America 3,4 % 9,3 %* RoW 15,3 % Total Group 8,0 % 9,6
Slide 7: Getinge Group Business
GETINGE GROUP BUSINESS AREA INFECTION CONTROL FINANCIALS HEALTHCARE 2006 2005 Change 2006 2005 Change Q4 Q4 12 Mon 12 Mon Net sales 3 996 3 889 3% 13 001 11 880 9% EBITDA 922 827 11% 2 271 2 131 7% Operating profit 840 740 14% 1 936 1 803 7% Operating margin 21,0% 19,0% 14,9% 15,2% Profit before tax
Slide 8: Strategic direction
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Strategic direction
Slide 9: Getinge has gained a competitive position that will be further strengthened by trends
GETINGE GROUP BUSINESS AREADIRECTION INFECTION CONTROL HEALTHCARE Getinge has gained a competitive position in its market that will be further strengthened by current trends
Slide 10: Successful healthcare companies in the future will need to be bigger
GETINGE GROUP BUSINESS AREADIRECTION INFECTION CONTROL HEALTHCARE Successful healthcare companies in the future will need to be bigger and have broader capability to be regarded as preferred partners.
Slide 11: We will build our future on the successes that have brought us here
GETINGE GROUP BUSINESS AREADIRECTION INFECTION CONTROL HEALTHCARE We will build our future on the successes that have brought us to our current position
Slide 12: Our strategic cornerstones
GETINGE GROUP BUSINESS AREADIRECTION INFECTION CONTROL HEALTHCARE Our strategic cornerstones Market leadership We strive to be global no 1 or no 2 in the product areas focused. Market leadership will help us attain cost leadership through scale Innovative solutions We strive to combine the stren
Slide 13: Financial targets
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Financial targets
Slide 14: Group Financial targets
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Group Financial targets 15% year over year average growth of pre tax earnings Development of existing positions: 7–8% Acquisition of globally leading product lines: 7–8% To reach and maintain an EBITA-margin of 17% (current structure) Ca
Slide 15: Financial targets by Business Area
GETINGE GROUP Financial targets by Business Area Actual 06 Target Infection Control Organic growth 9,8 % 4–5% EBITA margin 13,3 % 16 % Extended Care Organic growth 6,4 % 7% EBITA margin 15,8 % 19 % Medical Systems Organic growth 8,7 % 5% EBITA margin 16,2 % 17 %
Slide 16: Group priorities 2007
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Group priorities 2007
Slide 17: Group priorities 2007
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Group priorities 2007 Supply chain development Internationalization Integration of Huntleigh and creation of ”new” Extended Care External growth
Slide 18: Supply chain development for improved cost competitiveness and innovation
GETINGE GROUP BUSINESS AREA INFECTION CONTROL SUPPLY HEALTHCAREDEVELOPMENT CHAIN Supply chain development for improved cost competitiveness and increased rate of innovation Product management / Product Generation Planning Value creation: R & D, Assembly, Q/A Plant consolidation / specializatio
Slide 19: Internationalization: reducing dependency on Western Europe
GETINGE GROUP BUSINESS AREA INFECTION CONTROL INTERNATIONALIZATION HEALTHCARE Getinge can improve its organic growth rate by reducing its dependency on markets in Western Europe Investments in own sales infrastructure in developing economies Strengthen sales and market organization in the US whe
Slide 20: Strategic rationale: integration of Huntleigh
INTEGRATION OF HUNTLEIGH BUSINESS AREA INFECTION CONTROL HEALTHCARE Strategic rationale Huntleigh and Extended Care will together constitute a globally leading player and a major force in institutional bedside management Critical mass Market leadership Cost efficiency Platform for enhanced g
Slide 21: Financial targets new EC
NEW EXTENDED BUSINESS AREACARE INFECTION CONTROL HEALTHCARE Financial targets new EC Organic growth is expected to average 7% EBITA-margins are targeted to reach 19% in 2009 (Ebita-margin proforma 2006 was 14,4%) Integration charges are expected to amount to 350 MSEK between 2007 and 2009
Slide 22: External growth
GETINGE GROUP BUSINESS AREA INFECTION CONTROL EXTERNAL GROWTH HEALTHCARE Infection Control Bolt-on acquisitions to add new technologies and to reach new geographies within existing product lines New product lines: Consumables Extended Care Bolt-on acquisitions to add new technologies or to bui
Slide 23: Outlook 2007
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Outlook 2007 We expect demand to remain solid in most geographies and across most product lines Revenues will benefit from expanded sales network and new product introduction carried out in 2006 EBITA margin will be strengthened as a res
Slide 24: Getinge is well positioned
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Getinge is well positioned We have created a competitive position that will be further strengthened by current trends Market dynamics remain robust Continued investments in market and product development will support improved growth rate