Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Q3 2020 Earnings Presentation
26 slides from Getinge Ab Class B's earnings presentation, Oct 16, 2020
Slide 1: Q3 Report 2020: Extraordinary efforts, when needed the most
Q3 Report 2020 “Extraordinary efforts, when needed the most” Mattias Perjos, President and CEO Lars Sandström, CFO October 16, 2020
Slide 2: Daily New Cases
Daily New Cases ge 7-day moving average averai 3-day moving a 1 director warn ven more d cond Wave of © bee of Coronavirus is likely to evaslating
Slide 3: Key takeaways – performance
Key takeaways – performance Q3 2020 • Record sales growth • Improved margins • Strengthened Free Cash Flow • Leverage improved to 1.4x (3.1x) 18.9 29,478 53.0 26,000 50 12 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2019 2019 2019 2020 2020 2020 2018 2019 2019
Slide 4: COVID-19 impact on the business – status Q3
COVID-19 impact on the business – status Q3 Critical Care and Cardiopulmonary: still growing Y-o-Y but at more normal levels Cardiac & Vascular Systems: down Y-o-Y, but sequential improvement since mid Q2 Order trend Life Science: strong performance in products for Biopharma customers Surgic
Slide 5: Organic order growth is +19 % YTD
Organic order growth is +19 % YTD Organic order growth YTD is up 19 % in total and down 6% if the Critical Care product range is excluded Organic order intake growth YTD is +19 % Critical Care (advanced ventilators, monitoring etc.) is the key driver behind organic order growth YTD. Products for ECM
Slide 6: Order intake Q1-Q3 2020
Order intake Q1-Q3 2020 Trends are converging Critical Care and Decisions to ramp up capacity in advance ICU- ventilators and ECMO Cardiopulmonary The 26,000 advanced ICU-ventilator (~50% of sales in Acute Care capacity for 2020 was fully booked Therapies before COVID-19) Hospitals starting to
Slide 7: Order intake Q1-Q3 2020: Impact on net sales 2021
Order intake Q1-Q3 2020 Impact on net sales 2021 Critical Care and Trend is moving towards a normalized demand for advanced ICU-ventilators in 2021 Cardiopulmonary Expecting the positive underlying demand for ECMO- (~50% of sales in Acute Care therapies to transform into increased net sales Therapie
Slide 8: Outlook FY 2020
Outlook FY 2020 Due to the continued uncertainty resulting from the COVID-19 pandemic, Getinge chooses not to provide a forecast of how much net sales are expected to increase for FY 2020 Getinge Interim Report Q3 2020 October 16, 2020 Page 8
Slide 9: Savings in OPEX YTD due to new ways of working
Savings in OPEX YTD due to new ways of working Related to COVID-19 Temporary savings – expected to return when in “new normal” For example: Marketing, fairs, sales travel -100 MSEK Structural savings – not expected to come back -100 MSEK Thanks to new way’s of working (virtual meetings, training, se
Slide 10: Key activities and events
Key activities and events Q3 2020 Improvement journey continues • Enabling productivity gains in production, logistics and OPEX Product news • NAVA shortening time on ventilation by almost 35% for adult ICU patients (independent multicenter study) Launch of the “Life-Defining • Getinge’s Flow-e and
Slide 11: A new ambition on sustainability – going CO2 neutral by 2025
A new ambition on sustainability – going CO2 neutral by 2025 Addressing major challenges in society and healthcare In our operations … … and supporting customers’ ambitions on reducing environmental impact Getinge Interim Report Q3 2020 October 16, 2020 Page 11
Slide 12: Record net sales in Q3 – but orders starting to move towards normal
Record net sales in Q3 – but orders starting to move towards normal Critical Care, products for ECMO therapies and Life Science driving net sales growth Global Americas EMEA APAC Order Growth -5.3% Net Sales Growth +33.4% (Organic) Getinge Interim Report Q3 2020 October 16, 2020 Page 12
Slide 13: Order Intake per business area
Order Intake per business area Bridge Q3 2019 - Q3 2020 Organic change -0.4% -0.2% -14.5% -5.3% -404 75 MSEK 6,678 -450 5,898 Q3 2019 Acute Care Therapies Life Science Surgical Workflows Q3 2020 The figures in tables and charts in Getinge's financial statements are no longer rounded (as was done in
Slide 14: Net Sales per business area
Net Sales per business area Bridge Q3 2019 - Q3 2020 Organic change +63.1% +33.4% -11.2% +33.4% 1,875 232 -433 Currency impact, MSEK -368 75.6 7,976 Organic growth, % 6,236 MSEK Q3 2019 Acute Care Life Science Surgical Q3 2020 2.1 Therapies Workflows Capital Consumables The figures in tables and cha
Slide 15: Adjusted Gross Profit and Margin development Q3 2020
Adjusted Gross Profit and Margin development Q3 2020 Bridge Q3 2019 - Q3 2020 Adj GM, % Q3 2020 62.4 42.6 39.0 54.9 (Q3 2019) (57.4) (40.4) (43.3) (50.8) 111 -243 Gross Margin impact 1,339 Volume ACT 4,378 Mix 3,171 MSEK Under absorption (capital equipment) Currency Q3 2019 Acute Care Life Science S
Slide 16: Financial development
Financial development Getinge Interim Report Q3 2020 October 16, 2020 Page 16
Slide 17: Adjusted EBITA bridge Q3 2019 – Q3 2020
Adjusted EBITA Bridge Q3 2019 – Q3 2020 25.4% Margin improvement +3.8 pp GP +8.3 pp OPEX 10.9% +1.4 pp Depreciation +1.0 pp Currency +1,352 -6 -3 -32 68 119 2,028 1,207 MSEK 677 Q3 2019 Adj Gross Adj Selling Adj Admin Adj R&D Other D&A Q3 2020 profit The figures in tables and charts in Getinge's fin
Slide 18: Adjusted EBITA bridge by business area
Adjusted EBITA Bridge Q3 2019 – Q3 2020 +1,352 83 -109 8 1,370 -30 MSEK Currency effect 2,028 MSEK 677 Q3 2019 Acute Care Therapies Life Science Surgical Workflows Group Functions and Q3 2020 other (incl eliminations) The figures in tables and charts in Getinge's financial statements are no longer r
Slide 19: Improved free cash flow, working capital and increasing ROIC
Improved free cash flow, working capital and increasing ROIC Continued efficiency enhancements Improved Free Cash Flow Improvement of WC days Improved Return on Invested Capital +980 135 17.8% -30 days 130 125 120 115 110 1,567 1,419 1,368 105 7.6% 6.9% 988 100 WACC (without Tax Shield) 95 587 5 0 Q
Slide 20: Strong funding and cash position
Strong funding and cash position Improved net debt … … and leverage 14.0 3.3x 5.7 BSEK in cash (Sep 30) 9.9 1.4x Intention is to reduce (0.9x excluding excess cash going forward pension liabilities) 19-Sep 20-Sep 19-Jun 19-Dec 20-Mar 20-Jun 19-Sep 20-Sep 20-Mar 19-Jun 20-Jun Net debt, BSEK 19-Dec Ne
Slide 21: Summary
Summary Getinge Interim Report Q3 2020 October 16, 2020 Page 21
Slide 22: Key takeaways
Key takeaways Summary Q3 2020 • Record sales growth • Improved margins • Strengthened Free Cash Flow • Leverage improved to 1.4x (3.1x) • The intense cooperation with hospitals continues Getinge Interim Report Q3 2020 October 16, 2020 Page 22
Slide 23: Q&A
Q&A Getinge Interim Report Q3 2020 October 16, 2020 Page 23
Slide 24: Thank you
Thank you Getinge Interim Report Q3 2020 October 16, 2020 Page 24
Slide 25: 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 26: Getinge – Passion for Life
Se a GETINGE PASSION FOR LIFE