Slide 1: Q4 Report 2017
Q4 Report 2017 Mattias Perjos, President and CEO Lars Sandström, CFO January 29, 2018
Slide 2: Agenda
Agenda Business overview Financial performance Outlook Summary Q&A Page 2
Slide 3: Business overview
Business overview Mattias Perjos, President and CEO Page 3
Slide 4: Takeaway from the quarter
Takeaway from the quarter Customer focus support top-line growth and underlying Gross Margin in line with LY EBITA Gross Margin Growth Impacted by one-offs, Underlying performance in organic order intake stranded common cost & line with LY + 6.6% Quality cost Growth Proposed dividend organic net sal
Slide 5: Organic topline development in Q4
Organic topline development in Q4 Organic order intake: +6.6% Organic net sales: +2.5% Organic Organic growth % +3.8 +9.9 growth % +4.8 +0.4 Business areas MSEK MSEK 3,454 3,170 3,661 3,710 Reported Reported ACT SW ACT SW Organic Organic growth % +1.4 +2.1 +15.0 growth % +5.1 +6.6 -2.0 Regional MSEK
Slide 6: Key activities
Key activities In the fourth quarter • FDA-remediation progress on all sites - Entering Q1 2018 with SEK 556 M of provision for remediation still unutilized • Product, Services and Solutions - Strategic partnership with Verb Surgical Inc - Launch of updated version of the Heater Unit, HU-35, to the
Slide 7: Underlying performance – Gross Margin and EBITA margin
Underlying performance – Gross Margin and EBITA 1 margin Volume and product mix supporting Gross Margin – higher quality cost impacting EBITA Stable underlying Gross Margin Volume and product mix, primarily from ACT 2.7% 46.0% 45.7% 43.3% One-offs: M 197 SEK Write down R&D & Inventory Q4 2016 adj Q4
Slide 8: Acute Care Therapies Q4 – growth in both order intake and net sales
Acute Care Therapies Q4 – growth in both order intake and net sales Underlying performance on Gross Margin in line with LY but Quality and Selling cost is impacting EBITA Growth in order intake … Growth in net sales … Improved Gross Margin (adj*) (organic, %) (organic, %) (%) 5 5 4.8% 57 +1.0 4 3.8%
Slide 9: Surgical Workflows Q4 – growth in both order intake and net sales
Surgical Workflows Q4 – growth in both order intake and net sales Underlying performance on Gross Margin in line with LY Growth in order intake … Growth in net sales … Declining Gross Margin (adj*) (organic, %) (organic, %) (%) 9.9% 10 0.6 38.0 0.5 -0.6 8 37.5 0.4% 37.2% 0.4 6 37.0 0.3 36.6% 4 0.2 3
Slide 10: Life Science – a new business area
Life Science – a new business area Reported as a separate Business Area from Q1 Report 2018 Market size: SEK 23 Billion Market growth: 3-5% Share of Getinge’s net sales in total: ~10% Customers’ needs Highly specialized process needs for contamination prevention. Getinge’s offering Equipment, techni
Slide 11: Overview financials
Overview financials Lars Sandström, CFO Page 11
Slide 12: Results
Results GETINGE 3
Slide 13: Performance summary
Performance summary Organic growth net sales – but increasing OPEX impacting EBITA1 Organic sales growth Q4 : +2.5% Organic sales growth YTD : +1.3% 2.5 +0.1 +1.5 +0.1 1.3 Impact Q4 • USD -3.4 Topline development +0.1 -0.8 Organic FX Acq/ Actual Organic FX Acq/ Actual growth div growth growth in div
Slide 14: FX effects
FX effects Outlook on transaction effect on Getinge’s EBIT FY2018: SEK -100 M Q4 (MSEK) YTD (MSEK) Outlook FY18 Transaction effect GP EBITA 1 EBIT GP EBITA 1 EBIT EBIT Flows of cash needed to produce products to customers. The reason for Hedged hedging is that we want to contribute to stability in s
Slide 15: Balance sheet
Balance sheet GETINGE 3
Slide 16: Balance sheet
Balance sheet A significant decrease in net debt Net debt development Change in net debt Key ratios MSEK MSEK 23,389 Major items 17,608 Net debt to equity ratio -10,597 Rights Issue: 4.3 MSEK Decreased to 0.65 (1.12) Arjo distribution: 4.5 MSEK Other interest- 21,701 12,792 Net debt to EBITDA* beari
Slide 17: Cash Flow
Cash Flow GETINGE 3
Slide 18: Cash flow
Cash flow Negatively impacted by increasing working capital Cash flow from operations Working capital Net investment MSEK MSEK MSEK 1,783 74 -467 -446 -431 21 -406 -410 -703 -5 1,080 +45 868 -257 -302 592 223 -702 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 201
Slide 19: Outlook
Outlook Mattias Perjos, President and CEO Page 19
Slide 20: Outlook 2018
Outlook 2018 Organic sales growth and transaction effect • Organic sales growth is expected to be slightly positive in 2018 • Currency transaction effects FY 2018 are expected to have a negative impact of approximately SEK -100 M on Getinge's EBIT Page 20
Slide 21: Summary
Summary Mattias Perjos, President and CEO Page 21
Slide 22: Takeaway from the quarter
Takeaway from the quarter Customer focus support top-line growth and underlying Gross Margin in line with LY EBITA Gross Margin Growth Impacted by one-offs, Underlying performance in organic order intake stranded common cost & line with LY + 6.6% Quality cost Growth Proposed dividend organic net sal
Slide 23: Q&A
Q&A cage 28 GETINGE 3
Slide 24: Thank you
Thank you age 24 GETINGE 3
Slide 25: 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 26: GETINGE
Se A GETINGE PASSION FOR LIFE