Getinge Ab Class B · OMXSTO:GETI_B
Getinge Ab Class B — Investor Day (December 2009)
34 slides from Getinge Ab Class B's investor day presentation, Dec 4, 2009
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY Johan Malmquist Stockholm 4 December, 2009
Slide 2: Agenda
AGENDA • Overview • Drivers for profitable growth • External growth • US Healthcare reform • Infection Control • Extended Care • Group financial targets • Outlook 2009 • Outlook 2010
Slide 3: A rapidly expanding medical technology company
A rapidly expanding medical technology company Medical Systems Extended Care Infection Control GETINGE GROUP 2009.12.04
Slide 4: Global leadership, solution provider, customer relationships
Getinge has built a competitive business supported by a robust strategy: Global leadership Solution provider Customer relationships GETINGE GROUP 2009.12.04
Slide 5: Global leadership
Global leadership We strive to be a global No 1 or No 2 in the product areas we focus on. Market leadership will help us attain leadership through scale. Sterilization no 1 Endoscopic Vessel Harvesting no 1 Disinfection no 1 Beating heart surgery no 2 Anastomosis CABG no 1 Patient Handling no 1 Vasc
Slide 6: Solution provider
Solution provider We strive to combine the strength of our leading product positions and the depth of our know-how to offer innovative solutions that lead to process improvements for our customers and positive clinical outcomes. Medical Systems Extended Care Infection Control Integrated solutions fo
Slide 7: Customer relationships
Customer relationships Getinge strives to establish strong customer relationships through own distribution channels whenever justified. GETINGE GROUP 2009.12.04
Slide 8: Recent structural changes have improved our earnings quality
Recent structural changes have improved our earnings quality • Major acquisitions in recent years have enhanced our exposure to therapeutic disciplines with higher entry barriers. • The Group’s dependence on capital equipment sales has been systematically reduced. Almost 50% of today’s revenues deri
Slide 9: Drivers for Profitable Growth
DRIVERS FOR PROFITABLE GROWTH
Slide 10: We expect to outgrow the markets we serve by 2%
We expect to outgrow the markets we serve by 2% over the next 3-5 years • Revenue synergies from recent major acquisitions. • R&D investments in recent years have significantly increased our available markets. • We will continue to invest in proprietary sales channels in emerging economies. GETINGE
Slide 11: We expect EBITA margins to continue to improve
We expect EBITA margins to continue to improve in future years • The acquisitions of Huntleigh, Datascope and the Cardiac and Vascular surgery divisions of Boston Scientific represents SEK 600 – 700 M in annual cost synergies. • New and pending product introductions are associated with higher gross
Slide 12: External Growth
GETINGE GROUP EXTERNAL GROWTH
Slide 13: Size is an increasingly important competitive factor
Size is an increasingly important competitive factor. External growth will help us achieve both financial and strategic targets. Reinforcing existing leadership positions • We expect bolt-on acquisitions to add approximately. 2% growth per year. Focus: New technology and geographic expansion Strengt
Slide 14: US Healthcare Reform
GETINGE GROUP US HEALTHCARE REFORM
Slide 15: US Healthcare reform
US Healtcare reform Based on knowledge and assumptions, we believe that the effect of the pending US healthcare reform will be neutral to slightly negative on an EPS basis + Increased patient volumes through expanded insurance coverage + Increased long-term focus on equipment and devices that delive
Slide 16: Infection Control
GETINGE GROUP INFECTION CONTROL
Slide 17: Infection Control
Infection Control Global leader in infection prevention and control for healthcare providers and life science customers. Revenue, SEK billion: 4.7 Associates: 3 000 Sales companies: 29 Plants: 12 Revenues by category Revenues by geography Western Europe Capital Equipment H C 20% North America 35% 39
Slide 18: Infection Control: Key activities for growth
Infection Control Key activities for growth • Strengthened product portfolio through increased R&D investments • Continued investments in proprietary sales organisations in emerging economies • Development of a consumables business with a focus on chemistry for disinfection • Accelerate service deve
Slide 19: Infection Control: Key activities to expand EBITA margins
Infection Control Key activities to expand EBITA margins • Reduced manufacturing footprint • Reduced manufacturing depth/low cost sourcing • New production capacity in low-cost economies • New IT-platform/process efficiency Annual cost savings of more than SEK 100 M correspond to about a 2% increase
Slide 20: Infection Control: Financial targets
Infection Control Financial targets • Target Organic growth: 5% (average 2004 – 2008: 6.1%) • Target EBITA margin: 16% (2008: 13.9%) GETINGE GROUP 2009.12.04
Slide 21: Extended Care
GETINGE GROUP EXTENDED CARE
Slide 22: Extended Care
Extended Care Leading global provider of products and services for the movement of patients with reduced mobility and for treating medical conditions caused by lack of mobility. Revenue, SEK billion: 6.2 Associates: 4 300 Sales companies: 29 Plants: 7 Revenues by category Revenues by geography 11% W
Slide 23: Extended Care: Key activities for growth
Extended Care Key activities for growth • Revenue synergies from Huntleigh acquisition • Significantly improved product pipeline • Opportunities for improved market penetration • Internationalisation • Better utilisation of sales and service organisation GETINGE GROUP 2009.12.04
Slide 24: Extended Care: Key activities to expand EBITA margins
Extended Care Key activities to expand EBITA-margins • Additional cost based synergies from Huntleigh acquisition • Increased sourcing in low-cost economies • IT infrastructure – improved process efficiency Annual cost savings of more than SEK 200 M correspond to about a 3% increase in the EBITA mar
Slide 25: Extended Care: Financial targets
Extended Care Financial targets • Target Organic growth: 5% (average 2004 – 2008: 4.5%) • Target EBITA margin: 19% (2008: 16.5%) GETINGE GROUP 2009.12.04
Slide 26: Group Financial Targets
GETINGE GROUP GROUP FINANCIAL TARGETS
Slide 27: Getinge Group: Financial targets
Getinge Group Financial targets • Pre-tax earnings: Average growth of 15% per year • Long-term organic revenue growth: 5% (next 3-5 years 2% above market, i.e 7%) • EBITA margin: ~ 20% (MS: 22%, EC: 19%, IC: 16%) • Cash conversion: 60-70% of EBITDA GETINGE GROUP 2009.12.04
Slide 28: Outlook 2009
GETINGE GROUP OUTLOOK 2009
Slide 29: Outlook 2009
Outlook 2009 • We expect organic revenue growth to amount to about. 1% the 2009 financial year. • We expect pre-tax profit to grow by about 20% compared with the 2008 financial year. GETINGE GROUP 2009.12.04
Slide 30: Outlook 2010
GETINGE GROUP OUTLOOK 2010
Slide 31: Expected market trends 2010: Western Europe
Expected market trends 2010 Western Europe • Continued healthy growth in recurring revenue base. Mid- single digit growth or better. • Equipment revenue flat to low-single digit growth 46 % • Lower than average growth in Extended Care due to high exposure to UK and Northern Europe • Medical Systems
Slide 32: Expected market trends 2010: North America
Expected market trends 2010 North America • Recurring revenue growth to improve somewhat in 2010 • Capital equipment revenue to improve from a low base • Discontinuation of certain unprofitable products in Medical 32 % Systems (Surgical Workplaces) will lead to declining equipment revenues GETINGE G
Slide 33: Expected market trends 2010: Rest of the World
Expected market trends 2010 22 % Rest of the World • We expect growth in equipment and recurring revenue to improve compared to 2009 • Positive effects from revenue synergies and expanding sales coverage GETINGE GROUP 2009.12.04
Slide 34: Outlook 2010
Outlook 2010 • We expect organic revenue growth to improve compared with 2009 • We expect pre-tax profit to grow by double digits GETINGE GROUP 2009.12.04