GETINGE Capital Markets Day January 30 th, 2007. GETINGE... a rapidly expanding healthcare company.

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GETINGE An expanding Medical-Technology group with focus on comprehensive solutions for infection control, surgical systems and care of elderly and disabled.
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Presentation transcript:

GETINGE Capital Markets Day January 30 th, 2007

GETINGE... a rapidly expanding healthcare company

BUSINESS AREA INFECTION CONTROL HEALTHCARE A G E N D A  Review of 2006  Strategic direction  Financial targets  Group priorities  Outlook 2007

BUSINESS AREA INFECTION CONTROL HEALTHCARE Review 2006 GETINGE GROUP

BUSINESS AREA INFECTION CONTROL HEALTHCARE a year of investments for a competitive tomorrow:  Improved market coverage in developing economies  Strengthened market and sales organisations in USA to capture market shares  Increased investments in new product development  Restructuring of plant and production structure  Integration of La Calhène

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP FINANCIALS Organic order intake 2006 By Business Area Medical Systems13,5 % Infection Control6,1 % Extended Care1,3 %7,2 %* Total Group8,0 %9,6 %* By geography West Europe8,2 % North America3,4 %9,3 %* R o W15,3 % Total Group8,0 %9,6 %* *) Adjusted for MOH orders Ontario, Canada

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP FINANCIALS Change Change Q4 12 Mon Net sales % % EBITDA % % Operating profit % % Operating margin 21,0%19,0%14,9%15,2% Profit before tax % %

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP Strategic direction

BUSINESS AREA INFECTION CONTROL HEALTHCARE Getinge has gained a competitive position in its market that will be further strengthened by current trends GETINGE GROUP DIRECTION

BUSINESS AREA INFECTION CONTROL HEALTHCARE Successful healthcare companies in the future will need to be bigger and have broader capability to be regarded as preferred partners. GETINGE GROUP DIRECTION

BUSINESS AREA INFECTION CONTROL HEALTHCARE We will build our future on the successes that have brought us to our current position GETINGE GROUP DIRECTION

BUSINESS AREA INFECTION CONTROL HEALTHCARE Our strategic cornerstones  Market leadership We strive to be global no 1 or no 2 in the product areas focused. Market leadership will help us attain cost leadership through scale  Innovative solutions 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  Customer relationships A direct approach to our customers is crucial to our success – Getinge will strive to establish own distribution companies whenever justifiable GETINGE GROUP DIRECTION

BUSINESS AREA INFECTION CONTROL HEALTHCARE Financial targets GETINGE GROUP

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP Group Financial targets  15% year over year average growth of pre tax earnings Development of existing positions:7 – 8 % Acquisition of globally leading product lines:7 – 8 %  To reach and maintain an EBITA-margin of 17% (current structure)  Cash flow generation to sustain an external growth rate of 10 %

GETINGE GROUP Financial targets by Business Area Infection Control Organic growth9,8 %4 – 5 % EBITA margin13,3 %16 % Extended Care Organic growth6,4 %7 % EBITA margin15,8 %19 % Me di cal Systems Organic growth8,7 %5 % EBITA margin16,2 %17 % Actual 06Target

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP Group priorities 2007

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP Group priorities 2007  Supply chain development  Internationalization  Integration of Huntleigh and creation of ”new” Extended Care  External growth

BUSINESS AREA INFECTION CONTROL HEALTHCARE Supply chain development for improved cost competitiveness and increased rate of innovation  Product management / Product Generation Planning  Value creation: R & D, Assembly, Q/A  Plant consolidation / specialization  Production in lower cost regions  Logistics development, SOP-development GETINGE GROUP SUPPLY CHAIN DEVELOPMENT

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP INTERNATIONALIZATION Getinge can improve its organic growth rate by reducing its dependency on markets in Western Europe  Investments in own sales infrastructure in developing economies  Strengthen sales and market organization in the US where potential for market share expansion is significant

BUSINESS AREA INFECTION CONTROL HEALTHCARE INTEGRATION OF HUNTLEIGH Strategic rationale Huntleigh and Extended Care will together constitute a globally leading player and a major force in institutional bedside management  Critical mass  Market leadership  Cost efficiency  Platform for enhanced growth

BUSINESS AREA INFECTION CONTROL HEALTHCARE NEW EXTENDED CARE Financial targets new EC  Organic growth is expected to average 7%  EBITA-margins are targeted to reach 19% in 2009 (Ebita-margin proforma 2006 was 14,4%)  Integration charges are expected to amount to 350 MSEK between 2007 and 2009

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP EXTERNAL GROWTH Infection Control  Bolt-on acquisitions to add new technologies and to reach new geographies within existing product lines  New product lines: Consumables Extended Care  Bolt-on acquisitions to add new technologies or to build critical mass in existing product lines Medical Systems  Bolt-on acquisitions to add new technologies and to reach new geographies within existing product lines  New product lines: Interventional Cardiology / Cardiac surgery, Endoscopy, Critical Care

BUSINESS AREA INFECTION CONTROL HEALTHCARE Outlook 2007  We expect demand to remain solid in most geographies and across most product lines  Revenues will benefit from expanded sales network and new product introduction carried out in 2006  EBITA margin will be strengthened as a result of structural improvements in the operation carried out in 2006  Investments in new sales infrastructure, in product development and low cost manufacturing will continue, but at a lower rate than in 2006  Huntleigh will contribute to operating earnings and will support an expansion of group EBITA margin  Exchange rate will impact results adversely GETINGE GROUP

BUSINESS AREA INFECTION CONTROL HEALTHCARE GETINGE GROUP Getinge is well positioned  We have created a competitive position that will be further strengthened by current trends  Market dynamics remain robust  Continued investments in market and product development will support improved growth rates  Supply chain initiatives will strengthen competitiveness  New Extended Care  Significant opportunities for industry consolidation