Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Q4 2016 Earnings Presentation
26 slides from Getinge Ab Class B's earnings presentation, Jan 26, 2017
Slide 1: Q4 Report
Q4 REPORT J O A C I M L I N D O F F, C E O & R E I N H A R D M A Y E R , C F O JANUARY 26, 2017
Slide 2: Overview: General Business
OVERVIEW GENERAL BUSINESS J O A C I M L I N D O F F, C E O
Slide 3: Q4 in Brief
Q4 IN BRIEF E B I TA * C O N T I N U I N G T O G R O W • Organic top line growth: Order intake: -1.1%; Net sales: -2.3% • Gross margin: -1.1 pp due to unfavorable product and country mix • Efficiency enhancements: saved SEK 140-150 M in Q4 due to Big 5 • EBITA-growth*: +2.6% to SEK 1,970 M (1,920) •
Slide 4: Top Line Development
TOP LINE DEVELOPMENT N E T S A L E S A F F E C T E D B Y W E A K O R D E R I N TA K E I N Q 3 • Organic order intake -1.1% • Weak performance in SW and EMEA • ACT +5.4% PPAC +1.4%, SW -9.2% • APAC +5.5%, Americas +2.4%, EMEA -6.9 % • Organic net sales -2.3% • Affected by SW and negative order intake
Slide 5: Q4 BCU Update – Surgical Workflows
Q4 BCU UPDATE – SURGICAL WORKFLOWS W E A K T O P L I N E D E V E L O P M E N T C O M PA R E D T O S T R O N G Q 4 2 0 1 5 • Organic order intake: -9.2% S e g m e n t O v e r v ie w, m S E K Q 4 2 0 16 Q4 2015 S u r g ic a l W o r k f lo ws % Y T D 2 0 16 YT D 2015 S u r g ic a l W o r k f lo ws % •
Slide 6: Q4 BCU Update – Acute Care Therapies
Q4 BCU UPDATE – ACUTE CARE THERAPIES B R O A D G R O W T H P U S H E D T H E E B I TA * - M A R G I N I N T H E R I G H T D I R E C T I O N • Organic order intake: +5,4 % S e g m e n t O v e r v ie w, m S E K Q 4 2 0 16 Q4 2015 A c u t e C a r e T h e r a p ie s % Y T D 2 0 16 YT D 2015 A c u t e C
Slide 7: Q4 BCU Update – Patient & Post-Acute Care
Q4 BCU UPDATE – PATIENT & POST-ACUTE CARE G R O W T H I N O R G A N I C O R D E R I N TA K E • Organic order intake: +1.4 % S e g m e n t O v e r v ie w, m S E K Q 4 2 0 16 Q4 2015 P a t ie n t & P o s t - A c u t e % Y T D 2 0 16 YT D 2015 P a t ie n t & P o s t - A c u t e % Order Intak e, externa
Slide 8: FDA & Remediation Update
FDA & REMEDIATION UPDATE IMPROVEMENT MEASURES CONTINUES • Utilized approximately SEK 70 M in Q4 Background: The Consent Decree • Signed between Maquet and FDA in February • New governance model for entities 2015 • Legal agreement entered into voluntarily covered by the Consent Decree • Focusing on c
Slide 9: Update on Proposed Spin-Off
UPDATE ON PROPOSED SPIN-OFF MOVING FORWARD AHEAD OF PLAN • Progress in line with plan in a structured process • Executive Team appointed and effective from April 1st • Internal recruitments except for CFO • Financial targets and strategy being reviewed • Patient & Post-Acute Care • The New Getinge •
Slide 10: Cost Efficiency Program
COST EFFICIENCY PROGRAM EFFICIENCY PROGRAM DELIVERED ON PLAN IN 2016 2016: BIG 5 – cost efficiency program • Savings amounted to SEK 140-150 M in Q4 • Accumulated savings FY 2016 amount to SEK 395-420 M 2017: Efforts to enhance efficiency continue in both entities • Patient & Post-Acute Care, which
Slide 11: R&D and Launches in 2017
R&D AND LAUNCHES IN 2017 F O C U S E D R & D F O R L O N G T E R M P R O F I TA B L E G R O W T H A large number of launches • Important launches in 2016 bringing positive effects in 2017 • A large pipeline for 2017, especially within Surgical Workflows • Long term plan for the value segment R&D spe
Slide 12: Overview: Financials
OVERVIEW FINANCIALS R E I N H A R D M AY E R , C F O
Slide 13: Results
GETINGE GROUP Results
Slide 14: Performance
PERFORMANCE CONTINUED COST REDUCTIONS Q4 Q4 C hange YTD YT D Order intake organically SEK M 2 0 16 2015 % 2 0 16 2015 C hange % • Slight decline in the quarter and for the FY Order intak e, SEK M 8 582 8 326 3,1% 3 0 14 2 30 431 -1,0% Organic -1,1% -0,8% Net sales organically F X-effec ts 3,9 pp -0,
Slide 15: Restructuring & Integration Costs
RESTRUCTURING & INTEGRATION COSTS M A I N LY N O N C A S H R E L AT E D I N Q 4 Q4 Write-down, intangible assets SEK 170 M Other restructuring and integration costs SEK 151 M Total SEK 321 M Reported FY 2016 restructuring costs SEK 1,313 M 15
Slide 16: FX Effects
FX EFFECTS N E G AT I V E E X C H A N G E R AT E E F F E C T S I N Q 4 T r a n s a c t io n T r a n s la t io n Negative effects in the quarter M SEK effect effect T o tal • Exchange-rate effects had a Gro s s P ro fit - 14 96 82 negative impact of SEK 20 M on EB IT A * - 14 -6 - 20 EBITA* in the qu
Slide 17: Balance Sheet
GETINGE GROUP Balance Sheet
Slide 18: Balance Sheet
BALANCE SHEET FOCUS ON NET DEBT DEVELOPMENT • Net debt development A ssets, 2 0 16 2015 M SEK 3 1- D e c 31-D ec • Adjusted change in net debt for the period Intangible as s ets 32 004 30 543 decreased to SEK 1,359 M T angible fixed as s ets 4 3 13 4 699 F inanc ial fixed as s ets 1 329 1 374 • Net
Slide 19: Cash Flow
GETINGE GROUP ge Cash Flow
Slide 20: Cash Flow
CASH FLOW I M P R O V E D C A S H C O N V E R S I O N & C A S H F L O W F R O M O P E R AT I O N S • Operational Cash Flow for the quarter M SEK Q4 2 0 16 Q4 2015 YTD 2 0 16 YT D 2015 increased by SEK 300 M (+20%) EB IT D A R es truc turing c o s t expens es 2 2 17 -68 2 167 -62 4 990 14 3 5 187 -26
Slide 21: Outlook
GETINGE GROUP -— .~ OUTLOOK JOACIM LINDOFF, CEO wee
Slide 22: Outlook
OUTLOOK GETINGE GROUP 2016 • We expect slight growth in organic net sales in 2017 • Currency transaction effects FY 2017 are expected to have a positive impact of approximately SEK 200 M on the Group’s earnings • The financial consequences of the Consent Decree with the FDA, excluding costs for the
Slide 23: Summary
GETINGE GROUP SUMMARY
Slide 24: Q&A
GETINGE GROUP Q&A
Slide 25: Thank You
GETINGE GROUP THANK YOU
Slide 26: 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