Getinge overview An expanding Medical-Technology group with focus on comprehensive solutions for...
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Getinge overview
An expanding Medical-Technology group with focus on comprehensive solutions for infection control, surgical systems and care of elderly and disabled people
Customers Acute careLong term careIndustry / Laboratories
Net Sales 8.6 billion SEKAssociates 5 600Manufacturing 18 production units in 9 countriesDistribution 70 sales companies in 25 countries
Distributors in 100 countries(ex Jostra and LSS)
Business Scope
Industry I0 %
Industry I0 %
Acute Care 60 %
Acute Care 60 %
Long Term Care
30 %
Long Term Care
30 %
Extended Care
31 %
Extended Care
31 %
Infection Control
40%
Infection Control
40%
Surgical Systems
29 %
Surgical Systems
29 %
B u s i n e s s A r e a s B u s i n e s s A r e a s
C u s t o m e r S e g m e n t sC u s t o m e r S e g m e n t s
(ex Jostra and LSS)
3
Group objectives & focus
4
Getinge Group Objectives
StrategicStrategic
To develop world leading positions in prioritized To develop world leading positions in prioritized niches of the health care industryniches of the health care industry
Strong Global Positions
BA Infection ControlBA Infection Control SterilizationSterilization # 1# 1 24 %24 %DisinfectionDisinfection # 1# 1 27 %27 %
BA Surgical SystemsBA Surgical Systems Surgical TablesSurgical Tables # 1# 1 40 %40 %Surgical LightsSurgical Lights # 1# 1 38 %38 %VentilatorsVentilators # 1# 1 28 % 28 % CardiopulmonaryCardiopulmonary # 3 # 3 22 %22 %Ceiling Service UnitsCeiling Service Units # 3# 3 15 %15 %AnaesthesiaAnaesthesia # 3# 3 6 %6 %
BA Extended CareBA Extended Care Hygiene SystemsHygiene Systems # 1# 1 60 %60 %Patient HandlingPatient Handling # 1# 1 40 %40 %Wound CareWound Care # 4# 4 5 %5 %
Business unitBusiness unit Market sharesMarket sharesPositionPosition
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Getinge Group Objectives
FinancialFinancial
To increase profit before tax with an average of I5% To increase profit before tax with an average of I5% per annumper annum
Internally generated cash flow to sustain an external Internally generated cash flow to sustain an external growth rate of I0% per annumgrowth rate of I0% per annum
StrategicStrategic
To develop world leading positions in prioritized To develop world leading positions in prioritized niches of the health care industryniches of the health care industry
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The Getinge Group
CAGR 24 %0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
0
200
400
600
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1000
Invoiced sales Profit before tax
The Getinge Group - Focus & Development
Surgical Systems
External Growth
Extended Care
Organic Growth
Infection Control
Improved Operating Performance
9
Review of Business Areas
Infection Control
Create a customer focused group from a number of companies acquired over the last 10 years
1990 - 2000 2003 2000 - 2002
Growth through acquisition
Restructuring Business development
- Improve production structure- Organisational focus - Brand identity
- Organic growth- Product development - Integrated solutions- Logistics / distribution- Service provider concept
INFECTION CONTROLINFECTION CONTROL
Infection ControlOrders received MSEK
2003 2002 Adj curr 2003 2002 Adj curr
per marketQ 3 Q 3 flucs & acqs 9 mon 9 mon flucs & acqs
Western Europe 386 358 11% 1 134 1 134 2%
USA and Canada 331 313 30% 863 1 062 3%
Asia and Australia 107 99 9% 292 278 9%
Rest of the world 66 59 13% 192 142 38%
Business area tot. 890 829 18% 2 481 2 616 5%
Infection ControlResults MSEK
2003 2002 2003 2002 2002
Q 3 Q 3 9 mon 9 mon F Y
Net sales 745 745 2,302 2,288 3,359
Gross margin % 37.7% 34.3% 39.2% 35.0% 36.2%
Operating cost -199 -215 -630 -679 -910
Operating profit 82 40 273 121 306
Operating margin % 11.0% 5.4% 11.9% 5.3% 9.1%
Extended Care
Focus on growth from a solid platform through product innovation, market penetration and geographical expansion
HIGHLIGHTS 2003HIGHLIGHTS 2003
GROWTH
Market penetration Strong product pipeline Geographical expansion
COMPETITIVENESS Global sourcing Improved production
structure Improved logistics
Extended CareOrders received MSEK
2003 2002 Adj curr 2003 2002 Adj curr
per marketQ 3 Q 3 flucs & acqs 9 mon 9 mon flucs & acqs
Western Europe 380 406 -1% 1 235 1 218 6%
USA and Canada 199 248 -7% 577 734 -5%
Asia and Australia 19 20 -1% 56 56 7%
Rest of the world 5 6 -2% 13 20 -34%
Business area tot. 603 680 -3% 1 881 2 028 2%
Extended CareResults MSEK
2003 2002 2003 2002 2002
Q 3 Q 3 9 mon 9 mon F Y
Net sales 583 640 1,798 1,981 2,720
Gross margin % 47.2% 50.0% 47.8% 50.4% 51.0%
Operating cost -181 -223 -595 -682 -900
Operating profit 95 98 265 317 488
Operating margin % 16.2% 15.3% 14.7% 16.0% 17.9%
Surgical Systems
Create a global leader in the field of Surgical workstations as a platform for further growth in the surgical systems market
SURGICAL WORKSTATIONSSURGICAL WORKSTATIONS
Growth opportunities
Japan and USA
Product development
AWIGS / VIWAS
New Pendant generation
New Light technology
Cross selling
Heraeus integration
OPERATING THEATREOPERATING THEATRE
Ceiling pendant 3.4%
VARIOP 20.6%
OR lights 5.0%
Furniture 5.8%
Anaesthesia & Ventilation unit (LSS) 14.5 %
OR table system 13.7 %
Data managementand monitoring together 10.5%
Heart lung machine (Jostra) 13.0%
MIS unit 8.8%
Gas supply system 3.5%
The Equipped OR, Value = $0.75 million
Ceiling pendant 3.4%
VARIOP 20.6%
OR lights 5.0%
Furniture 5.8%
Anaesthesia & Ventilation unit (LSS) 14.5 %
OR table system 13.7 %
Data managementand monitoring together 10.5%
Heart lung machine (Jostra) 13.0%
MIS unit 8.8%
Gas supply system 3.5%
The Equipped OR, Value = $0.75 million
EXTERNAL GROWTH Surgical SystemsEXTERNAL GROWTH Surgical Systems
Surgical instruments
Ancillary Equipment
Radiology
Patient monitoring
Disposables
Life Support
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Acquisition of Jostra - business unit Cardiopulmonary
Jostra in brief
Sales approx 90 M EUR in 2002
Associates ~ 600
Sales in 100 countries, own sales companies in: DE, FR, IT, JP, CA, ES, GB, NL, SE, CN, HK
Production: Germany (2 sites), Sweden and Denmark
Products: Heart-lung machines, Oxygenators, Centrifugal pumps, related Disposables, Minimal Invasive on-pump Equipment
Excellent technology and product pipeline, 55 issued patents
Good track record of organic growth 10% +
Jostra Integration and Restructuring
New management team from 1st August 2003
Integration of Jostra’s sales and marketing organisation with that of Surgical Systems
Consolidation of Jostra production structure from 4 to 2 sites
Reinforce sales and marketing organisation to drive market penetration in Europe and emerging markets
Focus the R&D pipeline to deliver new technologies in a speedy and timely manner
Jostra Acquisition Financials
The target is to improve Jostra’s EBIT margin to 12 - 15% within 3 years after goodwill amortization
Contribution to group earnings in 2003 will be slightly negative to neutral
Contribution to group pre-tax profit including goodwill amortization and related financial charges will be in the range of EUR 5 - 6 million in 2004
26
Acquisition of Siemens LSS - business unit Critical Care
Key Data of LSS
LSS is one of the world’s leading providers of ventilation and anaesthesia products in the
critical care equipment market
In 2002/03, LSS have projected revenues of around 205 MEUR
The worldwide ventilation and anaesthesia hospital markets account for approx 550 MEUR
annual sales volume each, with an expected annual growth of approx. 5% p.a.
Life Support Systems (LSS)
LSS-Ventilation LSS-Anaesthesia
Sales of 175 MEUR
Global market shares 27%
Sales of 30 MEUR
Global market shares 6%
Total LSS Sales in 2002 by Region
28%
34%
15%23%
Japan 15%
USA 28%
Europe 34%
RoW 23%
F i n a n c i a l s
LSS will contribute with 10 - 12 MEUR to pretax profit in fiscal 2004
LSS will contribute with 17 - 20 MEUR to pretax profit in fiscal 2005
Operating margins after goodwill depreciation is targeted at 15% longterm
Surgical SystemsOrders received MSEK
2003 2002 Adj curr 2003 2002 Adj curr
per market Q 3 Q 3 flucs & acqs 9 mon 9 mon flucs & acqs
Western Europe 446 387 -12% 1 234 1 054 3%
USA and Canada 136 154 -23% 366 381 4%
Asia and Australia 122 75 33% 354 284 15%
Rest of the world 66 32 51% 128 129 -20%
Business area tot. 770 648 -6% 2 082 1 848 3%
Surgical SystemsResults MSEK
2003 2002 2003 2002 2002
Q 3 Q 3 9 mon 9 mon F Y
Net sales 754 660 2,101 1,743 2,521
Gross margin % 49.7% 50.5% 48.7% 49.1% 47.6%
Operating cost -296 -283 -782 -694 -946
Operating profit 78 51 241 162 255
Operating margin % 10.4% 7.7% 11.4% 9.3% 10.1%
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Results Q3 2003
Getinge ABResults MSEK
2003 2002 Change 2003 2002 Change 2002
Q 3 Q 3 9 mon 9 mon FY
Net sales 2 091 2 054 2% 6 231 6 041 3% 8 640
EBITDA 361 289 25% 1 080 894 21% 1 438
Operating profit 255 188 36% 779 601 30% 1 050
Operating margin 12,2% 9,2% 12,5% 9,9% 12,1%
Profit before tax 216 146 48% 664 471 41% 876
Getinge AB Balance sheets MSEK
Assets 2003-09-30 2002-09-30 2002-12-31
Fixed assets 4,751 4,577 4,564
Current assets 4,735 4,822 4,852
Total assets 9,486 9,399 9,416
Shareholders' equity & liabilities
Shareholders' equity 3,230 2,893 3,158
Provisions 1,955 2,084 1,943
Long-term liabilities 1,383 2,835 2,441
Current liabilities 2,918 1,587 1,874
Total Equity & Liabilities 9,486 9,399 9,416
Key figures
Net debt/equity, multiple 1.01 1.32 1.07
Equity/Assets ratio, per cent 34.1% 30.8% 33.5%
Getinge ABKey figures
Q3 Q3 9 mon 9 mon FY
Operating Cash Flow, MSEK 495 365 1,424 1,107 1,784
Net debt, MSEK 3,259 3,817 3,376
Equity / Assets ratio, % 34.0% 30.8% 33.5%
Net debt / Equity ratio, multiple 1.01 1.32 1.07
Interest cover, multiple 7.7 5.3 5.9