Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Investor Day (February 2006)
39 slides from Getinge Ab Class B's investor day presentation, Feb 1, 2006
Slide 1: Getinge Capital Market Day
GETINGE GROUP GETINGE Capital Market Day February 1st, 2006
Slide 2: Agenda
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE AGENDA 08.30 – 09.30 Getinge Overview & Targets Johan Malmquist, Ulf Grunander 09.30 – 09.45 Break 09.45 – 10.35 Getinge Medical Systems Heribert Ballhaus, Michael Rieder 10.35 – 11.35 Surgical Academy and site tour 11.35 – 12.35 Lunch 12.35 –
Slide 3: Business Areas: Infection Control, Extended Care, Medical Systems
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Infection Control Extended Care Medical Systems
Slide 4: Agenda
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE AGENDA Financial review 2005 Strategic direction Financial targets Group initiatives Infection Control – Focus & Outlook Extended Care – Focus & Outlook Medical System – Focus & Outlook
Slide 5: Financial Review 2005
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Financial Review 2005
Slide 6: Getinge AB – Financials (MSEK)
GETINGE AB – FINANCIALS (MSEK) 2005 2004 Change 2005 2004 Change Q4 Q4 12 Mon 12 Mon Orders received 3,557 2,981 19% 12,225 10,812 13% Net sales 3,889 3,477 12% 11,880 10,889 9% Operating profit 740 681 9% 1,803 1,742 4% Operating margin 19.0% 19.6% 15.2% 16.0% Profit before tax 693 634 9% 1,601 1,5
Slide 7: Getinge AB Key Figures (MSEK)
GETINGE AB KEY FIGURES (MSEK) 2005 2004 2005 2004 Q4 Q4 12 Mon 12 Mon Operating Cash Flow, MSEK 512 485 1,868 1,786 Net debt, MSEK 5,104 4,705 Equity / Assets ratio, % 37.1% 34.3% Net debt / Equity ratio, multiple 0.95 1.10 Interest cover, multiple 8.3 8.2
Slide 8: Infection Control Financials (MSEK)
INFECTION CONTROL FINANCIALS (MSEK) 2005 2004 Change 2005 2004 Change Q4 Q4 12 Mon 12 Mon Orders received 1216 985 23% 3896 3570 9% Net sales 1,393 1,245 12% 3,745 3,525 6% Gross margin % 38.0% 37.3% 0.7% 37.6% 38.4% -0.8% Operating cost -258 -209 23% -895 -818 9% EBITA 276 255 8% 518 534 -3% EBITA
Slide 9: Extended Care Financials (MSEK)
EXTENDED CARE FINANCIALS (MSEK) 2005 2004 Change 2005 2004 Change Q4 Q4 12 Mon 12 Mon Orders received 863 753 15% 3,131 2,693 16% Net sales 846 818 3% 2,982 2,701 10% Gross margin % 45.2% 50.0% -4.8% 45.9% 47.6% -1.7% Operating cost -244 -213 15% -862 -775 11% EBITA 142 199 -29% 522 514 1% EBITA mar
Slide 10: Medical Systems Financials (MSEK)
MEDICAL SYSTEMS FINANCIALS (MSEK) 2005 2004 Change 2005 2004 Change Q4 Q4 12 Mon 12 Mon Orders received 1,466 1,229 19% 5,153 4503 14% Net sales 1,639 1,402 17% 5,109 4,620 11% Gross margin % 48.7% 44.2% 4.5% 48.7% 48.6% 0.1% Operating cost -469 -391 20% -1,705 -1,549 10% EBITA 331 229 44% 787 699 1
Slide 11: Strategic direction
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Strategic direction
Slide 12: Getinge has gained a competitive position that will be strengthened
GETINGE GROUP DEVELOPMENT Getinge has gained a competitive position in its market that will be further strengthened by current trends
Slide 13: Successful healthcare companies will need to be bigger
GETINGE GROUP DEVELOPMENT Successful healthcare companies in the future will need to be bigger and have broader capability to be regarded as preferred partners.
Slide 14: We will build our future on our successes
GETINGE GROUP DEVELOPMENT We will build our future on the successes that have brought us to our current position.
Slide 15: Our Strategic Cornerstones
OUR STRATEGIC CORNERSTONES We strive to be a global No 1 or No 2 in the product areas focused. Market leadership will help us attain cost leadership through scale. We strive to combine the strength of our leading product positions and the depth of our know-how to offer innovative solutions that lead
Slide 16: Financial targets
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Financial targets
Slide 17: Financial Targets: 15% average growth per annum
FINANCIAL TARGETS The Getinge Group will reach its targets of 15 % average growth per annum by: Development of existing positions - Organic growth 5 % + - Bolt-on acquisitions ~ 3 % Acquisitions of new globally leading product lines that will strengthen our position as a provider of integrated s
Slide 18: Financial Targets by Business Area
FINANCIAL TARGETS BY BUSINESS AREA BUSINESS AREA INFECTION CONTROL HEALTHCARE Target A2004 Organic growth 4–5% EBITA margin ~ 16 % 15.2 % Target A2004 Organic growth ~7% EBITA margin ~ 19 % 18.9 % Target A2004 Organic growth ~5% EBITA margin ~ 17 % 15.4 % GROUP Target A2004 Organic growth ~5%+ EBITA
Slide 19: Assumptions
GETINGE GROUP BUSINESS AREA INFECTION CONTROL FINANCIAL TARGETS HEALTHCARE Assumptions Exchange rates as per January 1st, 2006 Current group structure Future price erosion offset by supply chain enhancement
Slide 20: Infection Control EBITA target
GETINGE GROUP BUSINESS AREA INFECTION CONTROL FINANCIAL TARGETS HEALTHCARE Infection Control Target: 16 % Ebita margin Actual 2005: 13.8 % Ebita margin Improved performance Getinge Inc: + 1.0 % Improved logistics: + 1.0 % Improved performance La Calhène: + 0.5 % Optimised production structure: + 0.5
Slide 21: Extended Care EBITA target
GETINGE GROUP BUSINESS AREA INFECTION CONTROL FINANCIAL TARGETS HEALTHCARE Extended Care Target: 19 % Ebita margin Actual 2005: 17.5 % Ebita margin Improved production structure : + 1.5 % Improved performance Wound Care: + 0.5 % Logistics improvement : + 0.5 %
Slide 22: Medical Systems EBITA target
GETINGE GROUP BUSINESS AREA INFECTION CONTROL FINANCIAL TARGETS HEALTHCARE Medical Systems Target: 17 % Ebita margin Actual 2005: 15.4 % Ebita margin Improved performance Cardiopulmonary: + 1.0 % Improved performance Getinge Inc : + 0.5 % Improved logistics + production structure: + 0.5 %
Slide 23: Group initiatives
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Group initiatives
Slide 24: Group initiatives
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE Group initiatives Supply chain development StinG-program Logistics Internationalization External growth
Slide 25: StinG
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE StinG Supply chain transformation in the Getinge group. A corporate supply chain project to prepare us to meet a more competitive future with confidence.
Slide 26: StinG
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE StinG Establishing robust processes that will create a sustainable competitive edge. Focus on value creation in design, assembly and quality assurance.
Slide 27: StinG consists of 3 related programs
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE StinG consists of 3 related programs Product Management Sourcing Performance Measurement
Slide 28: StinG - Product management
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE StinG - Product management The long term management of our product portfolio to meet customer needs in a profitable way is the foundation for improving our competitiveness Product Generation Planning (PGP) Product Development P
Slide 29: StinG - Sourcing
BUSINESS GETINGE AREA GROUP INFECTION CONTROL INITIATIVES HEALTHCARE StinG - Sourcing To effectively use and manage our suppliers as an extension of our own organization Purchasing Consolidation Re-localization Integration Make or Buy
Slide 30: Infection Control - Focus & Outlook
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Infection Control - Focus & Outlook
Slide 31: Infection Control strategy for growth 2004–2007
STRATEGY BUSINESSFOR GROWTH AREA 2004 – 2007 INFECTION CONTROL INFECTION CONTROL HEALTHCARE Principally organic growth supplemented by bolt-on acquisitions to reach new geographical territories, add new technologies in existing product lines Strengthen solution provider capabilities Focused appr
Slide 32: Infection Control Outlook 2006
OUTLOOK BUSINESS2006 AREA INFECTION CONTROL INFECTION CONTROL HEALTHCARE We expect demand to improve in most geographies We expect an improved currency situation La Calhène will contribute 30 MSEK to pre-tax earnings and lead to restructuring costs of 20 MSEK We expect profitability in Getin
Slide 33: Extended Care - Focus & Outlook
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Extended Care - Focus & Outlook
Slide 34: Extended Care strategy for growth 2004–2007
STRATEGY BUSINESSFOR GROWTH AREA 2004 - 2007 INFECTION CONTROL EXTENDED CARE HEALTHCARE Principally organic growth on existing markets supplemented by bolt-on acquisitions to add new technologies in existing product lines Total bed-side management in elderly care Enter the hospital market / bari
Slide 35: Extended Care Outlook 2006
OUTLOOK BUSINESS2006 AREA INFECTION CONTROL EXTENDED CARE HEALTHCARE We expect revenue growth to improve in Western Europe and remain solid in USA Improving currency situation Resumed patient handling deliveries in the US and new investment program in Ontario, Canada will compensate for the bi
Slide 36: Medical Systems - Focus & Outlook
BUSINESS GETINGE AREA INFECTION CONTROL GROUP HEALTHCARE Medical Systems - Focus & Outlook
Slide 37: Medical Systems strategy for growth 2004–2007
STRATEGY BUSINESSFOR GROWTH AREA 2004 – 2007 INFECTION CONTROL MEDICAL SYSTEMS HEALTHCARE Organic growth on existing markets and existing product lines. Acquisitions of new globally leading product lines that will strengthen our positions as an innovative solution provider with special emphasis on c
Slide 38: Medical Systems Outlook 2006
OUTLOOK BUSINESS2006 AREA INFECTION CONTROL MEDICAL SYSTEMS HEALTHCARE Continued good demand and revenue growth Improving currency situation Product launches in Surgical Workplaces will support growth Investments in new production structure for Cardiopulmonary Ongoing investments in own sa
Slide 39: Getinge has gained a competitive advantage in its market
GETINGE GROUP BUSINESS AREA INFECTION CONTROL HEALTHCARE Getinge has gained a competitive advantage in its market that will be further strengthened by current trends Internationalization Supply chain enhancement External growth