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Q1 Report 2019
Mattias Perjos, President and CEO
Lars Sandström, CFO
April 23, 2019
• Sales growth continues
• Positive growth outlook
• Gross Margin improved sequentially
• Improved adj EBITA Margin Y-o-Y
• Positive development on Working Capital and
stable Cash Flow
Q1 2019
Page 2
Key takeaways – performance
April 23, 2019
Getinge Q1 Report 2019
47.9 50.948.0
Q3 2018 Q1 2019
Adj Gross Margin, %
Q4 2018
+3.0 pp
Q1 2018
6.2 6.7 Adj EBITA Margin, %
Q1 2019
+0.5 pp
• Restructuring activities to reduce expenses and improve productivity
- Restructuring cost of SEK 108 M in the quarter
- Margin contribution is expected to start to show on P&L from H2 2019
• No new material information on Brazil, Mesh litigations and FDA Warning Letters
• FDA approval: Servo-u and Servo-n software, supporting continued growth in Critical Care
Q1 2019
Page 3
Key takeaways – events
April 23, 2019
Getinge Q1 Report 2019
Order Intake and Net Sales growth in all regions and business areas
Page 4
Organic growth continues
Americas EMEA APAC
Order Intake +7.6%
Net Sales +6.0%
Global
April 23, 2019
Getinge Q1 Report 2019
Page 5
Contribution in Order Intake Q1 2019Strong organic growth in all Business Areas
511
90244
Q1 2018
5,328
Acute Care Therapies Life Science Surgical Workflows
6,173
Q1 2019
MS
EK
+8.2% +8.7% +6.4%Organic change +7.6%
April 23, 2019
Getinge Q1 Report 2019
Page 6
Contribution in Net Sales Q1 2019Organic growth in all business areas – capital goods growing 10 pp faster than consumables
470
66144
4,868
Life ScienceQ1 2018 Acute Care
Therapies
Surgical Workflows
5,548
Q1 2019
MS
EK
Capital
12.4
Consumables
Org
anic
gro
wth
, %
2.4
+389Currency impact, MSEK
+7.7% +7.0% +2.4%Organic change +6.0%
April 23, 2019
Getinge Q1 Report 2019
Page 7
Gross Margin development Q1 2019Margin supported by volume growth but negatively impacted by currency effects and product mix
193
17 27
Q1 2018 Life Science
2,588
Acute Care
Therapies
MS
EK
Q1 2019Surgical Workflows
2,825
58.6
(61.5)
40.0
(42.1)
39.3
(41.2)
Adj GM, % Q1 2019:
(Q1 2018):
50.9
(53.2)
April 23, 2019
Product mix
Regional mix
Volume
Gross Margin impact
Currency
Getinge Q1 Report 2019
IFRS 16
Financial development
Page 8
April 23, 2019
Getinge Q1 Report 2019
Page 9
Adjusted EBITABridge Q1 2018 – Q1 2019
+0.5 pp Currency
-2.7 pp GP
+2.5 pp OPEX
+0.2 pp Depreciation
Margin increase 0.5 pp
April 23, 2019
6.2% 6.7%
Getinge Q1 Report 2019
237
369
Q1 2019Q1 2018 R&D
MS
EK
Gross profit
-28
Selling
-64
Admin
301
Other incl D&A
of intangible
and tangible
assets
-23
-54
+68
Page 10
Adjusted EBITABridge Q1 2018 – Q1 2019
301
369
128
Acute Care
Therapies
Q1 2018 Life Science
-30
-11
Surgical Workflows
-19
Common Group
Functions and other
(incl eliminations)
Q1 2019
MS
EK
+68
April 23, 2019
+ 40Currency
impact, MSEK
Getinge Q1 Report 2019
April 23, 2019
Getinge Q1 Report 2019
Page 11
Control on OPEXFTE’s and OPEX in relation to Net Sales continue to move in a positive direction
Decreasing number of FTE’s
200
400
300
10,200
10,600
10,500
10,800
10,400
10,900
10,300
10,700
18-J
un
18-D
ec
17-D
ec
18-M
ar
18
-Sep
19-M
ar
-421 FTE
FTE’s
Decreasing adj OPEX in relation to Net Sales
2.0
2.5
32.0
32.5
33.0
33.5
34.0
Q3 2
018
Q2 2
018
Q1 2
018
Q4 2
018
Q1 2
019
Adjusted OPEX/Net Sales (%) R12
• Cash flow positively impacted by increasing profit
• Working Capital is stable vs. previous year
despite strong growth in net sales
• Net debt is negatively impacted mainly by
currency effects and IFRS 16-effects
• Leverage (Net debt/adj EBITDA R12M) is in line
with Q4 2018 when adjusted for IFRS 16-effects
Q1 2019
Page 12
Stable cash flow development
SEK M
Jan-Mar
2019
Jan-Mar
2018
Jan-Dec
2018
Cash flow before changes in working capital 356 272 2,641
Changes in working capital 31 26 -138
Net investments in non-current assets -248 -299 -1,335
Cash flow after net investments 139 -1 1,168
Whereof IFRS 16-effect 86 - -
Net interest-bearing debt at end of the period 13,953 13,079 12,591
In relation to adj EBITDA R12, multiple 3.4 3.2 3.2
Net interest-bearing debt at end of the period, excl IFRS 16 effect 12,947
In relation to adj EBITDA R12, excl IFRS 16 effect, multiple 3.2
April 23, 2019
Getinge Q1 Report 2019
April 23, 2019
Getinge Q1 Report 2019
Page 13
Stable cash flow development Working Capital is declining in days and in absolute terms
-2.0Working Capital growth,
% Q1 2018 vs Q1 2019
Net Sales growth, % (organic)
Q1 2018 vs Q1 2019
6.0
Working Capital is decreasing despite strong sales growth Working Capital Days continue to improve
0
5
115
120
125
130
135
18
-Sep
18-J
un
17-D
ec
18-M
ar
18-D
ec
19-M
ar
Working Capital Days
Working Capital, as defined on this page, is including accounts receivables, accounts payables
and inventory - adjusted for currency
Outlook
Page 14
April 23, 2019
Getinge Q1 Report 2019
Page 15
Outlook 2019
2-4%Organic Net Sales Growth
April 23, 2019
Getinge Q1 Report 2019
Summary
Page 16
April 23, 2019
Getinge Q1 Report 2019
• Sales growth continues
• Positive growth outlook
• Gross Margin improved sequentially
• Improved adj EBITA Margin Y-o-Y
• Positive development on Working Capital and stable Cash Flow
• Restructuring activities expected to start support margins from H2 2019
Summary Q1 2019
Page 17
Key takeaways
April 23, 2019
Getinge Q1 Report 2019
Q&A
Page 18
April 23, 2019
Getinge Q1 Report 2019
Thank you
Page 19
April 23, 2019
Getinge Q1 Report 2019
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
Page 20
April 23, 2019
Getinge Q1 Report 2019
