Q2 Report 2019

Q4 Report 2019

Mattias Perjos, President and CEO

Lars Sandström, CFO

January 30, 2020

• Sales growth continues

• Increasing margins

• Strong Cash Flow

• Leverage reduced to 2.5 (3.2)

• Dividend,SEK/share: 1.50 (1.00)

Q4 2019

Key takeaways – performance

January 30, 2020

Getinge Interim Report Q4 2019

50.5

49.5

51.5

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

R12 Gross Margin (adj) %

11.5

12.5

13.5

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

R12 EBITA Margin (adj) %

Leverage defined as net interest-bearing debt in relation to adjusted

EBITDA R12M, multiple

• Continued positive impact from restructuring activities in H1 2019 on underlying performance

• OPEX negatively impacted by currency, seasonally elevated personnel costs, remediation and EU MDR

• Applikon Biotechnology acquisition – closed January 3, 2020

• Initiated rationalizations in Surgical Workflows’ manufacturing footprint

Q4 2019

Key takeaways – events

January 30, 2020


Positive development in mature markets

Organic net sales growth continues

Americas EMEA APAC

Order Intake +0.9%

Net Sales +1.8%

Global

January 30, 2020


Contribution in Order IntakeBridge Q4 2018 - Q4 2019

346

4871

Q4 2018 Acute Care Therapies

6,729

Life Science Surgical Workflows

7,194

Q4 2019

MS

EK

+2.9% +2.3% -2.4%Organic change +0.9%

January 30, 2020


Contribution in Net SalesBridge Q4 2018 - Q4 2019

485

143

8,498

Surgical WorkflowsQ4 2018

7,890

Acute Care

Therapies

Life Science

-20

Q4 2019

MS

EK

Org

anic

gro

wth

, %

ConsumablesCapital

-0.3

+4.2

+465Currency impact, MSEK

+5.9% +13.9% -5.6%Organic change +1.8%

January 30, 2020


Gross Margin development Q4 2019Bridge Q4 2018 - Q4 2019

351

7489

Acute Care

Therapies

3,790

Q4 2018 Life Science Surgical Workflows

4,304

Q4 2019

MS

EK

61.3

(59.9)

38.5

(35.9)

39.8

(36.9)

Adj GM, % Q4 2019:

(Q4 2018):

50.6

(48.0)

January 30, 2020

Gross Margin impact


Volume

Currency

Product mix

Regional mix

IFRS 16

Financial development

January 30, 2020


Margin improvement

+1.3 pp Currency

+1.3 pp GP

-0.8 pp OPEX

+0.0 pp Depreciation

+0.0 pp IFRS 16

Adjusted EBITABridge Q4 2018 – Q4 2019

January 30, 2020

17.9%


514

4

Adj R&D D&A

1,412

OtherAdj Gross profit

-120

1,673

Q4 2019Adj Selling

-21

Q4 2018

-2

Adj Admin

MS

EK

-114

+261

19.7%

Adjusted EBITABridge Q4 2018 – Q4 2019

165

3061

5

Q4 2018

1,412

Acute Care

Therapies

Life Science Surgical Workflows Group Functions

and other (incl

eliminations)

1,673

Q4 2019

MS

EK

+261

January 30, 2020


+ 200Currency

impact, MSEK

January 30, 2020


Continued focus on cost controlOPEX continues to go down in relation to net sales

-254 FTE’s since the peak

400

200

300

10,200

10,300

10,500

10,400

10,600

10,700

10,800

10,900

Q3 2

019

Q4 2

018

Q2 2

019

Q1 2

018

Q3 2

018

Q4 2

017

Q2 2

018

Q4 2

019

Q1 2

019

+23

-254 FTE

FTE’s

Adj OPEX in relation to actual Net Sales

2

1

33

0

30

31

32

34

35%

R12 Q

1 2

019

R12 Q

2 2

019

R12 Q

2 2

018

R12 Q

1 2

018

R12 Q

3 2

018

R12 Q

4 2

018

R12 Q

4 2

019

R12 Q

3 2

019

• Increase: Sales,

production and

remediation

• Decrease: Admin

*Including IFRS 16 effects for Q1-Q4 2019. See page 4 in the quarterly

reports 2019 for the impact from IFRS 16 on adjusted OPEX.

January 30, 2020


Improved free cash flowContinued efficiency enhancements

Significantly improved Free CF

0.3

Q4 2018

0.1

Q1 2019

0.6

Q2 2019

0.6

Q3 2019

1.4

Q4 2019

+1.1 BSEK

Free Cash Flow, BSEK

125

135

130

110

0

5

115

120

17-D

ec

19-S

ep

18-M

ar

19-J

un

18-J

un

18-S

ep

18-D

ec

19-M

ar

19-D

ec

-17 days

Working Capital Days

-6.8Working Capital growth,

% Q4 2018 vs Q4 2019

Net Sales growth,

% (organic) Q4

2018 vs Q4 2019

1.8

WC days continue to improve WC decreasing despite sales growth

January 30, 2020


Reduced net debt and leverage

Q4 2019Q3 2019

9,6

Q1 2019

12,6

Q2 2019Q4 2018

12,3

11,4

7,9

Net debt, BSEK

Net debt, BSEK (excl IFRS 16)

Net debt, BSEK (excl IFRS 16 & pension liab.)

Reduced net debt

Q1 2019Q4 2018

2.5

3.2

2.4

Q2 2019 Q3 2019

1.7

Q4 2019

Reduced leverage

Net debt/Adj EBITDA R12 (excl IFRS 16)

Net debt/Adj EBITDA R12

Net debt/adj EBITDA R12 (excl IFRS 16 & pension liab.)

Outlook

January 30, 2020


Outlook 2020

2-4%Organic Net Sales Growth

January 30, 2020


Summary

January 30, 2020


• Continous improvements in the business and strong customer focus

• Sales growth continues

• Expected organic net sales growth for FY2020: 2-4%

• Increasing margins

• Strong Cash Flow

• Leverage reduced to 2.5 (3.2)

• Dividend, SEK/share: 1.50 (1.00)

Summary Q4 2019

Key takeaways

January 30, 2020


Q&A

January 30, 2020


Thank you

January 30, 2020


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 expectations will prove correct. Accordingly, the actual future outcome could vary

considerably compared with what is stated in the forward-looking information, due to such factors as changed conditions

regarding business cycles, market and competition, changes in legal requirements and other political measures, and

fluctuations in exchange rates.

Forward looking information

January 30, 2020


Q2 Report 2019

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