Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Q2 2020 Earnings Presentation
27 slides from Getinge Ab Class B's earnings presentation, Jul 16, 2020
Slide 1: Q2 Report 2020
Q2 Report 2020 “Making a difference together with our customers” Mattias Perjos, President and CEO Lars Sandström, CFO July 16, 2020
Slide 2: Getinge Interim Report Q2 2020
Getinge Interim Report Q2 2020 July 16, 2020 Page 2
Slide 3: Key takeaways – performance
Key takeaways – performance Q2 2020 28,000 • Strong order and sales growth • Improved margins R12M Net Sales, MSEK • Strengthened Free Cash Flow • Leverage improved to 1.8x (3.3x) 52 R12 Gross Margin (adj) % 16 R12 EBITA Margin (adj) % Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2019 2019 2019 2020 2020 Leverage
Slide 4: COVID-19 impact on the business - status
COVID-19 impact on the business - status Strong development in Critical Care and Cardiopulmonary Cardiac & Vascular Systems quarter but sequential improvement in June Order trend Life Science generating strong growth in Sterile Transfer, but offset by sterilizers Surgical Workflows impacted
Slide 5: COVID-19 impact on order intake Q1-Q2 2020
COVID-19 impact on order intake Q1-Q2 2020 – two divergent trends Critical Care and Decisions to ramp up capacity in Cardiopulmonary ventilators and ECMO The 26,000 advanced ICU-ventilator capacity for 2020 almost fully booked Hospitals starting to plan for the flu season, local COVID-19
Slide 6: Order trend and capacity ramp up in ventilators
Order trend and capacity ramp up in ventilators Expecting to be at full speed in production capacity by mid Q3 Close to 26,000 advanced ICU-ventilators in the order book Ordered ventilators (accumulated) Ramp up of production capacity Main challenge: Access to components March 31 June 30 Sep 30 Geti
Slide 7: World leading in advanced ICU-ventilators
World leading in advanced ICU-ventilators A primary Option for treatment of COVID-19 patients in the ICU • When recently mass-produced ventilators were reviewed, it was found that most of them had a functionality comparable to today’s transport or emergency ventilators • These ventilators do not ful
Slide 8: What’s to expect going forward – ICU capacity?
What’s to expect going forward – ICU capacity? Q: Don’t we have enough ICU-ventilators out there soon? A: No. There are still regions where there is a significant need for advanced ICU ventilators. An overwhelming majority of the new devices recently being produced are not ICU ventilators. Getinge I
Slide 9: What’s to expect going forward – elective cardiac and vascular surgery?
What’s to expect going forward – elective cardiac and vascular surgery? Q: How can Getinge help hospitals work down their rapidly growing backlog in elective surgery? A: We have invested in inventory build up to help hospitals take on a rapid, safe and efficient increase of cardiac and vascular inte
Slide 10: What’s to expect going forward – hospital capex?
What’s to expect going forward – hospital capex? Q: What about capital budgets in hospitals, for how long do you expect those to be reduced? A: This is really hard to predict. The underlying need has increased, if anything. … But the urgent need for prioritizations at hospitals, related to COVID-19,
Slide 11: Outlook 2020
Outlook 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 Q2 2020 July 16, 2020 Page 11
Slide 12: Key activities and events Q2 2020
Key activities and events Q2 2020 Improvement journey continues Write downs linked to predominantly old R&D • Enabling productivity gains in production, projects logistics and OPEX • SEK -167 M, whereof SEK -136 M EBITA* impact and SEK -31 M EBIT impact (PPA) Restructuring activities • Expected to g
Slide 13: Organic growth in Q2 – high levels of Critical Care orders and deliveries in EMEA
Organic growth in Q2 – high levels of Critical Care orders and deliveries in EMEA But reduced volumes in elective cardiac & vascular surgery and in Surgical Workflows impacting Americas and APAC Global Americas EMEA APAC Order Growth +17.5% Net Sales Growth +9.1% (Organic) Getinge Interim Report Q2
Slide 14: Order Intake per business area
Order Intake per business area Bridge Q2 2019 - Q2 2020 Organic change +44.3% -1.2% -18.1% +17.5% 1,611 119 -436 8,081 6,787 MSEK Q2 2019 Acute Care Therapies Life Science Surgical Workflows Q2 2020 The figures in tables and charts in Getinge's financial statements are no longer rounded (as was done
Slide 15: Net Sales per business area
Net Sales per business area Bridge Q2 2019 - Q2 2020 Organic change +20.8% +0.6% -7.8% +9.1% 759 97 +35 Currency impact, MSEK -162 28.6 Organic growth, % 6,971 6,277 MSEK Q2 2019 Acute Care Life Science Surgical Q2 2020 Therapies Workflows -4.6 Capital Consumables The figures in tables and charts in
Slide 16: Adjusted Gross Margin development Q2 2020
Adjusted Gross Margin development Q2 2020 Bridge Q2 2019 - Q2 2020 Adj GM, % Q2 2020 63.1 40.9 36.6 53.4 (Q2 2019) (58.8) (36.4) (37.5) (49.4) 633 66 -78 Gross Margin impact Volume 3,723 Product mix 3,101 MSEK Regional mix Currency Q2 2019 Acute Care Life Science Surgical Q2 2020 Therapies Workflows
Slide 17: Financial development
Financial development Getinge Interim Report Q2 2020 July 16, 2020 Page 17
Slide 18: Adjusted EBITA bridge Q2 2019 – Q2 2020
Adjusted EBITA Bridge Q2 2019 – Q2 2020 Margin improvement 17.5% +3.6 pp GP +4.5 pp OPEX 9.4% +0.1 pp Depreciation -0.1 pp Currency +627 147 622 -49 -37 -17 -40 1,218 591 MSEK Q2 2019 Adj Gross Adj Selling Adj Admin Adj R&D Other D&A Q2 2020 profit The figures in tables and charts in Getinge's finan
Slide 19: Adjusted EBITA bridge by business area
Adjusted EBITA Bridge Q2 2019 – Q2 2020 +627 34 4 589 0 -4.1 MSEK 1,218 Currency effect MSEK 591 Q2 2019 Acute Care Therapies Life Science Surgical Workflows Group Functions and Q2 2020 other (incl eliminations) The figures in tables and charts in Getinge's financial statements are no longer rounded
Slide 20: Improved free cash flow, working capital and reduced leverage
Improved free cash flow, working capital and reduced leverage Continued efficiency enhancements Improvement of free cash flow Improvement of WC days Improvement on leverage +792 135 -23 days 130 125 3.3x 120 115 1,419 1,368 110 988 105 1.8x 576 587 100 5 0 18-Sep 19-Sep 19-Sep 18-Mar 18-Jun 19-Mar 1
Slide 21: Strong funding and cash position
Strong funding and cash position Improved net debt … Strengthened cash position … … and unutilized credit facilities amounting to: 14.0 5.9 SEK 7.1 B 10.9 1.2 19-Sep 19-Sep 19-Jun 20-Mar 20-Jun 19-Jun 20-Mar 20-Jun 19-Dec 19-Dec Net debt, BSEK Cash, BSEK The figures in tables and charts in Getinge's
Slide 22: Summary
Summary Getinge Interim Report Q2 2020 July 16, 2020 Page 22
Slide 23: Key takeaways
Key takeaways Summary Q2 2020 • Strong order and sales growth • Improved margins • Strengthened Free Cash Flow • Leverage improved to 1.8x (3.3x) • The intense cooperation with hospitals to help patients with COVID-19 continues Getinge Interim Report Q2 2020 July 16, 2020 Page 23
Slide 24: Q&A
Q&A Getinge Interim Report Q2 2020 July 16, 2020 Page 24
Slide 25: Thank you
Thank you Getinge Interim Report Q2 2020 July 16, 2020 Page 25
Slide 26: 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 27: GETINGE
Se a GETINGE PASSION FOR LIFE