Getinge

Quarterly Report • Jan 30, 2019

"Growth is continuing – our net sales increased by 7% in the quarter, of which 2.4% was organic growth. We can see a temporary decline in orders, but ended the year with better order bookings than at the end of 2017, which is positive. Customer signals indicate that we can expect order growth in future quarters, and for the full-year 2019 we believe that net sales will increase organically by 2-4%. We launched additional products during the quarter that have consolidated our strong positions, for example, the Maquet PowerLED II advanced surgical light. We see signs of margins starting to improve – the adjusted gross margin was, for the first time in 2018, sequentially higher, albeit only slightly. We have good control of our operating expenses, which after currency adjustments were in line with the preceding quarter. This was despite costs being at a seasonal high in the fourth quarter of the year. The adjusted EBITA margin was 17.9% and excluding currency effects was in line with the fourth quarter of 2017. Cash flow was stable despite the large payment of SEK 276 M to cover the previously announced company fine in Brazil. In summary, 2018 was a year in which we delivered the highest organic growth for many years, fully in line with the plan we launched in 2017. We will continue in 2019 with our planned measures to gradually improve profitability and cash flow.

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
			24,347
Order intake	6,729	6,624		23,228
Organic change, %	$-3.1$	6.6	2.5	2.5
Net sales	7,890	7,371	24,172	22,495
Organic change, %	2.4	2.5	4.9	1.3
Adjusted gross profit	3,790	3,591	11,943	11,652
Margin, %	48.0	48.7	49.4	51.8
Adjusted EBITDA	1,735	1,690	3,916	4,285
Margin, %	22.0	22.9	16.2	19.0
Adjusted EBITA	1,412	1,377	2,689	3,108
Margin, %	17.9	18.7	11.1	13.8
Adjusted EBIT	1,285	1,236	2,216	2,522
Margin, %	16.3	16.8	9.2	11.2
Operating profit/loss (EBIT)	1,208	845	$-284$	1,493
Margin, %	15.3	11.5	$-1.2$	6.6
Profit/loss before tax	1,104	718	$-624$	933
Net profit/loss for the period	715	960	$-939$	1,117
Adjusted net profit for the period	947	1,046	1,639	1,994
Margin, %	12.0	14.2	6.8	8.9
Adjusted earnings per share, SEK	3.47	3.81	5.91	7.87
Earnings per share, SEK	2.62	3.50	$-3.55$	4.37
Cash flow from operating activities 2)	684	1,080	2,503	2,763

Group performance

Order intake

October-December 2018

Order intake business areas, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Acute Care Therapies	3.650	3.454	0.9	13.069	12,383	3.6
Life Science	616	568	2.3	2.295	2.011	9.6
Surgical Workflows	2.463	2.602	$-9.5$	8.983	8.834	$-0.7$
Total	6,729	6.624	$-3.1$	24.347	23,228	2.5
Order intake regions, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Americas	2.699	2,366	6.7	9,696	9.149	4.6
APAC	1.579	1.502	0.8	5.362	4,744	10.7
EMEA	2,451	2,756	$-13.6$	9.289	9.335	$-3.7$

Net sales

October-December 2018

Net sales	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
business areas, SEK M	2018	2017	Org $\Delta$ , %	2018	2017	Org $\Delta$ , %
Acute Care Therapies	3,855	3,661	0.3	13,013	12,201	4.5
Life Science	722	593	15.5	2,194	1,947	8.5
Surgical Workflows	3,313	3,117	2.3	8,965	8,347	4.7
Total	7,890	7,371	2.4	24,172	22,495	4.9
Net sales	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
regions, SEK M	2018	2017	Org $\Delta$ , %	2018	2017	Org $\Delta$ , %
Americas	2,811	2,540	4.1	9,530	9,039	4.0
APAC	1,912	1,862	$-0.9$	5,203	4,684	8.7
EMEA	3,167	2,969	3.0	9,439	8,772	3.9
Total	7,890	7,371	2.4	24,172	22,495	4.9
Net sales specified by capital	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
goods & consumables, SEK M	2018	2017	Org $\Delta$ , %	2018	2017	Org $\Delta$ , %
Capital goods	4,175	3,937	2.8	10,552	9,589	7.8
Consumables	3,715	3,434	2.3	13,620	12,906	2.9
Total	7,890	7.371	2.4	24,172	22,495	4.9

Net sales-bridge between Oct-Dec 2017 and Oct-Dec 2018

• Temporary decline mainly in Surgical Workflows and in emerging markets in EMEA.
• Order bookings were higher than at year-end 2017.
• Positive performance in Americas, with slightly more than 8% growth in the US.
• Acute Care Therapies continued its robust growth in APAC, with slightly more than 13% growth in China.
• Life Science continued to report a healthy trend, particularly in Americas.
• Healthy growth in Americas where Life Science grew by 18.4% and Surgical Workflows 9.7%, mainly attributable to North America.
• Acute Care Therapies increased its sales in Critical Care and Cardiopulmonary, while sales declined in Vascular Systems and Cardiac Systems.
• · Surgical Workflows increased its sales due to high sales in Americas and EMEA.
• Life Science grew in all regions, with a particularly strong performance in Americas and APAC.
• The rate of growth was relatively balanced between capital goods and consumables.
• Net sales increased by SEK 519 M for the quarter, corresponding to growth of 7.0%.
• Currency effects made a positive contribution of SEK 342 M.
• Volume, price, and product and market mix effects accounted for SEK 177 M of growth, corresponding to organic growth of 2.4% compared with the fourth quarter of 2017.

Underlying earnings trend

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEKM	2018	2017	2018	2017
Net sales	7,890	7,371	24,172	22,495
Adjusted gross profit	3,790	3,591	11,943	11,652
Margin, %	48.0	48.7	49.4	51.8
Adjusted operating expenses	$-2,055$	$-1,901$	$-8,027$	$-7,367$
Adjusted EBITDA	1,735	1,690	3,916	4,285
Margin, %	22.0	22.9	16.2	19.0
Depreciation, amortization and write-downs of tangible and
intangible assets 1)	$-323$	$-313$	$-1,227$	$-1,177$
Adjusted EBITA	1,412	1,377	2,689	3,108
Margin, %	17.9	18.7	11.1	13.8
A Amortization and write-down of acquired
intangible assets 1)	$-127$	$-141$	$-473$	$-586$
Adjusted EBIT	1,285	1,236	2,216	2,522
Margin, %	16.3	16.8	9.2	11.2
B Acquisition and restructuring costs	46	$-125$	$\Omega$	$-763$
C Other items affecting comparability	$-123$	$-266$	$-2,500$	$-266$
Operating profit/loss (EBIT)	1,208	845	$-284$	1.493
Net financial items	$-104$	$-127$	$-340$	$-560$
Profit/loss before tax	1.104	718	$-624$	933
Adjusted profit before tax (adjusted for A, B and C)	1,308	1,250	2,349	2,548
Margin, %	16.6	17.0	9.7	11.3
Taxes	$-389$	242	$-315$	184
D Adjustment of tax 2)	28	$-446$	$-395$	$-738$
Adjusted net profit for the period (adjusted for A, B, C and D)	947	1,046	1,639	1,994
Margin, %	12.0	14.2	6.8	8.9
Of which, attributable to Parent Company shareholders	945	1,039	1,611	1,973
Average number of shares, thousands	272,370	272,370	272,370	250,720
Adjusted earnings per share, SEK (adjusted for A, B, C and D)	3.47	3.81	5.91	7.87

1) Excluding items affecting comparability (see Note 5). See Note 3 for depreciation and write-downs. 2) See Note 5.

Adjusted EBITA per business area¹⁾

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEKM	2018	2017	2018	2017
Acute Care Therapies	1,029	847	2,533	2,500
Margin, %	26.7	23.1	19.5	20.5
Life Science	130	102	277	369
Margin, %	18.0	17.2	12.6	19.0
Surgical Workflows	331	474	142	445
Margin, %	10.0	15.2	1.6	5.3
Group functions and
other (incl. eliminations)	$-78$	$-46$	$-263$	$-206$
Total	1,412	1,377	2,689	3,108
Marain, %	17.9	18.7	11.1	13.8

1) See Note 3 for depreciation and write-downs and Note 5 for other items affecting comparability.

Adjusted EBITA-bridge between Oct-Dec 2017 and Oct-Dec 2018

• Currency effects impacted net sales by SEK +342 M, gross profit by SEK +105 M and EBITA by SEK +6 M.
• The adjusted gross margin was at the same level as the third quarter of 2018 and the gap to the year-earlier quarter shrank.
• The difference in gross margin compared with the preceding year is primarily due to currency effects and the product and market mix.
• Excluding currency effects, operating expenses were in line with the third quarter of 2018, despite costs being at a seasonal high in the fourth quarter of the year.
• The gap to the year-earlier period also shrank for the adjusted EBITA margin. Excluding currency effects, it was in line with the same quarter in 2017.

• Acquisition and restructuring costs and other items affecting comparability amounted to SEK-77 M for the quarter, mainly attributable to write-down of receivables from distributors.

• Adjusted EBITA in Acute Care Therapies increased by SEK 182 M compared with the fourth quarter of 2017, primarily attributable to a higher gross margin.

• In Life Science, adjusted EBITA rose by SEK 28 M, as a result of higher sales and despite a lower gross margin.
• Adjusted EBITA in Surgical Workflows fell by SEK-143 M, primarily related to a lower gross margin, currency effects and continuing costs after the distribution of Arjo.

Adjusted operating expenses

(excluding depreciation, amortization and write-downs and other items affecting comparability)¹⁾

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Selling expenses	$-1.166$	$-1.103$	$-4.527$	$-4,319$
Administrative expenses	$-704$	$-613$	$-2.757$	$-2.427$
Research and development costs	$-168$	$-154$	$-662$	$-568$
Other operating income and expenses	$-17$	$-31$	$-81$	$-53$
Total	$-2.055$	$-1.901$	$-8.027$	$-7.367$

1) See Note 3 for depreciation and write-downs and Note 5 for other items affecting comparability.

Adjusted EBITA-bridge between Oct-Dec 2017 and Oct-Dec 2018

• EBITA for the quarter was impacted by translation effects of SEK +57 M and transaction effects

of SEK-51 M. • EBITA for the full-year was impacted by translation effects of SEK +8 M and transaction effects of SEK-220 M.

Currency impact

SEKM	Oct-Dec 2018	Jan-Dec 2018
Net sales	342	565
Gross profit	105	24
EBITDA	19	$-173$
EBITA	6	$-212$
Operating profit/loss (EBIT)	$-3$	$-221$

Cash flow and financial position¹⁾

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Cash flow before changes in working capital	1.181	1.337	2.641	3.653
Changes in working capital	$-497$	$-257$	$-138$	$-890$
Net investments in non-current assets	$-363$	$-467$	$-1.335$	$-1.633$
Cash flow after net investments	321	613	1.168	1.130
Net interest-bearing debt at end of the period			12,591	12,792
In relation to adjusted EBITDA 2) R12M, multiple			3.2	3.0

1) Information regarding cash flows for 2017 also includes Arjo, which was distributed to shareholders in December 2017. 2) See Note 5
on items affecting comparability and Note 7 Alternative performance measures.

• Excluding currency effects, operating expenses were in line with the third quarter of 2018, despite costs being at a seasonal high in the fourth quarter of the year.
• Excluding currency effects, selling expenses were in line with the corresponding period in 2017, while administrative expenses rose by 10%, primarily due to continuing costs after the distribution of Arjo.

• Cash flow from operating activities amounted to SEK 684 M (1,080) and cash flow after net investments amounted to SEK 321 M (613).

• The previously announced payment of a company fine of SEK 276 M for the ongoing investigations in Brazil was made during the quarter.
• Working capital was adversely affected by a lower rate of increase in accounts payable.

• Net debt fell by SEK 201 M in 2018.

• Gross expenses for R&D increased by 4.4% compared with the year-earlier quarter.

• Capitalized development costs fell by 1.5%.
• Research and development costs rose by 9.4%, net.

Research and development

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
R&D costs, gross	$-307$	$-294$	$-1.262$	$-1,123$
In relation to net sales, %	3.9	4.0	5.2	5.0
Capitalized development costs	132	134	571	529
In relation to net sales, %	1.7	1.8	2.4	2.4
Research and development costs, net	$-175$	$-160$	$-691$	$-594$
Amortization and write-downs of capitalized
R&D	$-140$	$-274$	$-519$	$-675$
Of which write-downs	$-11$	$-145$	$-15$	$-193$

Update regarding Consent Decree with the FDA

SEKM	Dec 31 2018	Dec 31 2017
Provision at beginning of period	556	371
Used amount	$-200$	-296
Provisions	$\overline{\phantom{0}}$	488
Translation differences	26	$-7$
Provision at close of period	382	556

• The Consent Decree with the FDA was signed in February 2015 and originally encompassed a total of four production units in the US and Germany.
• Improvement plans for the identified corrections have been prepared for each unit. Such identified corrections have been completed at the two production units in the US. This work is expected to take an additional 2-3 years at Hechingen.
• Getinge committed SEK 995 M in 2014 related to the remediation program for strengthening the former Medical Systems' quality management system, and in 2016 and 2017 SEK 400 M and SEK 488 M, respectively, were committed for the same purpose. The total cost of the remediation program thus amounted to SEK 1,983 M at the end the fourth quarter of 2018.

In autumn 2018, Getinge's production unit in Fairfield received a warning letter from the FDA. The reason for the warning letter was a routine inspection performed by the FDA at the production unit in spring 2018. The FDA's observations and opinions relates to procedures and processes linked to demands for supplier checks, processes for the approval of design changes and incident reporting.

The same observations were identified by Getinge during an internal inspection in the fourth quarter of 2017. The local organization has since worked to correct the shortcomings in the quality management system.

Getinge has submitted an action plan, including activities and a related schedule, to the FDA and improvements are proceeding according to plan. Net sales and the financial impact related to these observations are not expected to be material. Nor will production capacity be affected by this work.

• Improvements continue to take place in Hechingen in accordance with the revised plan from 2017.
• The unutilized provision totaled SEK 382 M at the end of the quarter, compared with SEK 438 M at the start of the quarter.

$\bullet$

Other key events during the quarter

Nomination Committee proposes Johan Malmquist as new Chairman of the Board

Getinge's Nomination Committee announced on December 10 its proposal that Johan Malmquist be elected the new Chairman of the Board at the Annual General Meeting on April 23, 2019. Carl Bennet will continue as a member of the Board and is proposed as Vice Chairman.

Capital Markets Day, November 21

Getinge held a Capital Markets Day in Gothenburg on November 21, 2018 for investors, analysts and media. The company's strategy and related business area plans for improving company performance were presented during the day.

The presentation is available from the following link: https://www.getinge.com/int/aboutus/investors/reports-presentations/.

A recording of the day (audio and visual) is available from the following link: https://www.youtube.com/watch?v=sXPXXsRipIQ&feature=youtu.be

Acute Care Therapies

Acute Care Therapies offers solutions for life support in acute health conditions. The offering includes solutions for cardiac, pulmonary and vascular therapies and a broad selection of products and therapies for intensive care. The addressable market amounted to SEK 85 billion with expected organic growth of 2-4% per year.

Order intake and net sales

Order intake Oct-Dec Oct-Dec Jan-Dec Jan-Dec Org A, % regions, SEK M 2018 2017 2018 Org $\Delta$ , % 2017 Americas 1,777 1,633 $1.5$ 6,415 6,234 $1.5$ APAC 2,638 18.7 768 665 $11.3$ 2.191 EMEA 1.105 1,156 $-6.1$ 4,016 3.958 $-1.4$ Total 3,650 3,454 $0.9$ 13,069 12,383 $\overline{3.6}$

Net sales regions, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Americas	1.829	1.706	0.3	6.404	6.263	0.9
APAC	825	763	4.5	2.627	2.227	16.0
EMEA	1.201	1.192	$-2.3$	3.982	3.711	3.8
Total	3.855	3.661	0.3	13.013	12.201	4.5

Net sales specified by capital goods and consumables, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Capital goods	1.290	1.307	-4.0	3.501	3.289	5.3
Consumables	2.565	2.354	2.8	9.512	8.912	4.3
Total	3,855	3.661	0.3	13,013	12,201	4.5

Underlying earnings trend¹⁾

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Net sales	3,855	3,661	13,013	12,201
Adjusted gross profit	2,308	2,154	7,627	7,403
Margin, %	59.9	58.8	58.6	60.7
Adjusted EBITDA	1,211	1,021	3.259	3.174
Margin, %	31.4	27.9	25.0	26.0
Depreciation, amortization and write- downs of tangible and intangible
assets	$-182$	$-174$	$-726$	$-674$
Adjusted EBITA	1.029	847	2,533	2,500
Margin, %	26.7	23.1	19.5	20.5

1) See Note 3 for depreciation and write-downs and Note 5 for other items affecting comparability.

Key events in the business area

• Getinge performed the first demonstration of the next generation heart-lung machine, HL 40, at the annual conference of the European Association of Cardio-Thoracic Surgery (EACTS).
• Getinge's new Cardiac Surgery Research Center was opened in California.
• The new compact Flow-c anesthesia machine continued to contribute positively to sales.
• Publication of a white paper showing that environmentally harmful anaesthetic gases can be substantially reduced using automated gas control, offered in Getinge's anesthesia machines. Automated gas control also lowers costs as well as significantly reducing the impact on the environment.

• Decision to transfer production from Mahwah and Fairfield to the nearby production unit in Wayne (USA) in 2020-2021 and discontinue manufacturing in Cajamar (Brazil) in 2019. Certain operations are expected to remain in Mahwah after the relocation.

• Healthy growth in heart-lung machines in all regions and in Critical Care in East Asia.

• The decline in EMEA was mainly attributable to the Middle East and Africa.
• Healthy growth in Critical Care and Cardiopulmonary in Americas and APAC.
• Sales declined slightly in Vascular Systems, mainly in Americas and in Cardiac Systems.
• · Sales in expandable vascular stents continued to fall slightly year-on-year. However, the rate of decline is far lower than in the preceding quarters.
• Sales of consumables and service increased in relation to capital goods, which positively impacted the gross margin.
• The adjusted gross margin rose in relation to the year-earlier quarter, primarily as a result of a favorable product mix.
• Operating expenses were 2.5% lower compared with the yearearlier period, mainly due to efficiency enhancements in sales and administration. Adjusted for currency effects, operating expenses fell by 7.5%.
• The higher gross margin and lower operating expenses contributed to the increase in the adjusted EBITA margin compared with the preceding year.
• Currency effects impacted sales by SEK +182 M, gross profit by SEK +104 M and EBITA by SEK +46 M.

Life Science

Life Science offers a comprehensive range of equipment, technical expertise and consultation to prevent contamination in biopharmaceutical production, biomedical research, medical device manufacturing and laboratory applications. The addressable market amounted to SEK 23 billion with expected organic growth of 3-5% per year.

Order intake and net sales

Order intake Oct-Dec Oct-Dec Jan-Dec Jan-Dec Org $\Delta$ , % Org $\Delta$ , % regions, SEK M 2018 2018 2017 2017 Americas 228 155 37.8 802 673 16.5 APAC 434 $25.3$ 110 101 $3.2$ 335 $-0.2$ EMEA 278 312 $-15.5$ 1.059 1.003 Total 616 568 $2.3$ 2,295 $2.011$ $9.6$

Net sales regions, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Americas	246	196	18.4	815	718	11.1
APAC	174	115	46.1	375	328	10.7
EMEA	302	282	1.1	1.004	901	5.7
Total	722	593	15.5	2.194	1.947	8.5

Net sales specified by capital goods and consumables, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Capital goods	516	395	24.3	1.403	1.183	14.0
Consumables	206	198	$-2.0$	791	764	0.0
Total	722	593	15.5	2.194	1.947	8.5

Underlying earnings trend¹⁾

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEKM	2018	2017	2018	2017
Net sales	722	593	2,194	1,947
Adjusted gross profit	259	235	815	790
Margin, %	35.9	39.6	37.1	40.6
Adjusted EBITDA	146	119	348	435
Margin, %	20.2	20.1	15.9	22.3
Depreciation, amortization and write-
downs of tangible and intangible assets	$-16$	$-17$	$-71$	-66
Adjusted EBITA	130	102	277	369
Margin, %	18.0	17.2	12.6	19.0

1) See Note 3 for depreciation and write-downs and Note 5 for other items affecting comparability.

Key events in the business area

• Glove Leak Tester and DPTE Transfer Leak Tester were launched in the quarter. These products enhance the safety of customer production and process control via reliable leak identification.
• Launch of B&R, a new sterilizer control system. B&R communicates with customers' other $\bullet$ servers and systems and can be configured according to the FDA's requirements for safe electronic reporting.

• Expanded capacity for manufacturing of washer-dryers to meet increased demand in recent quarters. Production capacity has increased by a total of 20%.

• Life Science continued to report a healthy growth in organic order intake, particularly in Americas.

• · Solid performance in isolators in all regions and service in Americas and APAC.
• · Sales growth in all regions, with a particularly strong performance in Americas and APAC.
• Particularly high growth in sterilizers in APAC and Americas, and in disinfectors in all regions.
• Sales of capital goods are increasing at a rapid rate, which impacted the gross margin in the short term. In the long term, it is expected to lead to higher sales of consumables and service.
• The adjusted gross margin was 0.4 percentage points lower than in the third quarter of 2018 and the gap to the corresponding period in 2017 is at about 4%, mainly due to currency effects and the product mix.
• Operating expenses were in line with the preceding year.
• Higher sales contributed to the adjusted EBITA margin increasing by 0.8 percentage points compared with the preceding year.
• Currency effects impacted sales by SEK +37 M, gross profit by SEK +0 M and EBITA by SEK-6 M.

Surgical Workflows

Surgical Workflows offers products and services for efficient disinfection and sterilization of instruments used in operations, operating tables and other high-quality hardware for operating rooms and advanced IT systems for efficient and secure hospital workflows. The addressable market amounted to SEK 62 billion with expected organic growth of 2-4% per year.

Order intake and net sales

Order intake regions, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Americas	694	578	13.1	2.479	2.242	9.5
APAC	701	736	$-9.0$	2.290	2.218	0.6
EMEA	1.068	1.288	$-19.9$	4.214	4.374	-6.6
Total	2.463	2,602	$-9.5$	8,983	8,834	$-0.7$

Net sales regions, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Americas	736	638	9.7	2.311	2.058	11.1
APAC	913	984	$-10.5$	2.201	2.129	0.8
EMEA	1.664	1.495	7.6	4.453	4.160	3.6
Total	3.313	3.117	2.3	8.965	8,347	4.7

Net sales specified by capital goods and consumables, SEK M	Oct-Dec 2018	Oct-Dec 2017	Org $\Delta$ , %	Jan-Dec 2018	Jan-Dec 2017	Org $\Delta$ , %
Capital goods	2.369	2.235	3.0	5.648	5.117	8.0
Consumables	944	882	2.2	3.317	3.230	0.0
Total	3,313	3.117	2.3	8.965	8.347	4.7

Underlying earnings trend¹⁾

SEKM Net sales Adjusted gross profit Margin, % Adjusted EBITDA	Oct-Dec 2018 3,313 1,223 36.9 454	Oct-Dec 2017 3,117 1,202 38.6 595	Jan-Dec 2018 8,965 3,501 39.1 567	Jan-Dec 2017 8,347 3,459 41.4 878
Margin, %	13.7	19.1	6.3	10.5
Depreciation, amortization and write- downs of tangible and intangible assets	$-123$	$-121$	$-425$	$-433$
Adjusted EBITA	331	474	142	445
Margin, %	10.0	15.2	1.6	5.3

1) See Note 3 for depreciation and write-downs and Note 5 for other items affecting comparability.

Key events in the business area

• Launch of Maquet PowerLED II which offers state-of-the-art surgical lighting. The light provides clear lighting with no shadows and has an antibacterial coating that improves conditions for excellent clinical results. The first deliveries were made in the quarter, with a positive response from customers.
• Intensified activities in the Quality Value Engineering R&D initiative to reduce production costs.
• Increased activities in the business area's LEAN program, which aims to enhance customer $\bullet$ satisfaction and productivity, and support long-term profitability.

• Stéphane Le Roy was appointed President of the Surgical Workflows business area and joined $\bullet$ the Getinge Executive Team. He began his career at Getinge in 2012 and has previously held a number of managerial positions at GE Healthcare and Siemens.

• · Lower organic order intake, mainly attributable to the Middle East and Africa as well as APAC.

• Healthy growth in Americas, mainly attributable to North America.
• Healthy sales growth in EMEA and Americas, but lower sales in APAC compared with the yearearlier period.
• Strong performance in Infection Control in all regions.
• Sales of capital goods continued to grow faster than consumables and service, which negatively impacted the gross margin, but in the long term is expected to also result in higher sales of consumables and service.
• The adjusted gross margin was 1.7 percentage points lower than in the year-earlier period, meaning that the gap compared with the preceding year is shrinking. The gross margin was negatively impacted by currency effects and the product mix
• Excluding currency effects, operating expenses are at the same level as in the third quarter of 2018. Compared with the yearearlier quarter, operating expenses were negatively affected mainly by continuing costs after the distribution of Arjo and sales ventures.
• Lower gross margin and higher operating expenses contributed to the EBITA margin falling by slightly more than 5 percentage points year-on-year.
• Currency effects impacted sales by SEK +122 M, gross profit by SEK +2 M and EBITA by SEK-33 M.

Other information

Risk management

Healthcare reimbursement system

Political decisions represent the single greatest market risk to Getinge Group. Changes to the healthcare reimbursement system can have a major impact on individual markets by reducing or deferring grants. Since Getinge is active in a large number of geographical markets, the risk for the Group as a whole is limited.

Customers

Activities conducted by Getinge's customers are generally financed directly or indirectly by public funds and ability to pay is usually very solid, although payment behavior can vary between different countries. All transactions outside the OECD area are covered by payment guarantees, unless the customer's ability to pay is well documented.

Authorities and control bodies

Parts of Getinge's operations and product range are covered by legislation stipulating rigorous assessments, quality control and documentation. It cannot be ruled out that Getinge's operations, financial position and earnings may be negatively impacted by difficulties in complying with current regulations and requirements of authorities and control bodies or changes to such regulations and requirements. To limit these risks to the greatest possible extent, Getinge conducts extensive work focused on quality and regulatory issues and every business area assumes overall responsibility for quality and regulatory issues. The majority of the Group's production facilities are certified according to the medical device quality standard ISO 13485 and/or the general quality standard ISO 9001. Getinge is also, and may become in the future, involved in government investigations, disputes and similar proceedings within the framework of its other business operations concerning such issues as the environment, tax and competition. Since Getinge operates in a global environment, the company is also exposed to local business risks, such as corruption and restrictions on trade. To minimize the risk of being subject to such investigations, disputes and proceedings, Getinge works actively on developing, implementing and maintaining policies and systems for ensuring compliance with applicable rules and regulations.

Research and development

Getinge's future growth also depends on the company's ability to develop new and successful products. Research and development efforts are costly and it is impossible to guarantee that developed products will be commercially successful. As a means of maximizing the return on research and development efforts, the Group has a very structured selection and planning process to ensure that the Group prioritizes correctly when choosing which potential projects to pursue. This process includes careful analyses of the market, technological progress, choice of production method and selection of subcontractors. The development work is conducted in a well-planned manner and each project undergoes a number of fixed control points.

Product liability and damage claims

Healthcare suppliers run a risk, like other players in the healthcare industry, of being subject to product liability and other legal claims. Such claims can involve large amounts and significant legal expenses. Getinge cannot provide any guarantees that its operations will not be subject to compensation claims. Getinge carries the customary indemnity and product liability insurance, but there is a risk that Getinge's insurance coverage may not fully cover product liability and other claims.

Protection of intellectual property

Getinge is a market leader in the areas in which it operates and invests significant amounts in product development. To secure returns on these investments, Getinge actively upholds its rights and monitors competitors' activities closely. There is the risk when new products are developed that other companies may claim a patent infringement, which could result in disputes. If required, Getinge will protect its intellectual property rights through legal processes.

Financial risk management

Getinge is exposed to a number of financial risks in its operations. Financial risks principally pertain to risks related to currency and interest-rate risks, as well as credit risks. Risk management is regulated by the finance policy adopted by the Board. The ultimate responsibility for managing the Group's financial risks and developing methods and principles of financial risk management lies with the Getinge Executive Team and the treasury function. The main financial risks to which the Group is exposed are currency risks, interest-rate risks and credit and counterparty risks.

Seasonal variations

Getinge's earnings are affected by seasonal variations. The second quarter is normally weak in relation to the remainder of the fiscal year. The third and particularly fourth quarters are usually the Group's strongest quarters.

Transactions with related parties

During the year, Board members and the Executive Team of Getinge AB acquired synthetic options in Getinge issued by the company's principal owner Carl Bennet AB. Getinge is not a party to the transactions and the offering was submitted on Carl Bennet AB's own initiative, without Getinge's participation. The options were acquired at a price corresponding to the estimated market value. Following the distribution of Arjo in December 2017, Getinge carried out normal commercial transactions with Arjo for the sale and purchase of goods and services. In addition, no other significant transactions with related parties occurred during the period other than transactions with subsidiaries.

Forward-looking information

This report contains forward-looking information based on the current expectations of company management. Although management deems that the expectations presented by such forwardlooking 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 finances, market and competition, changes in legal and regulatory requirements and other political measures, and fluctuations in exchange rates.

Getinge's financial targets

• Average annual organic growth in net sales: 2-4%
• Average earnings per share growth: >10%
• Getinge's dividend policy is to pay dividends of 30-50% of net profit to shareholders.

Dividend

The Board of Directors and CEO propose a dividend for 2018 of SEK 1.00 (1.50) per share, which amounts to SEK 272 M (409). The final date for trading including the right to receive dividends is April 23, 2019 and the proposed record date is April 25, 2019. Euroclear expects to distribute the dividend to shareholders on April 30, 2019.

2019 Annual General Meeting

Getinge AB's Annual General Meeting will be held on April 23, 2019 at 2:00 p.m. in Kongresshallen at Hotel Tylösand in Halmstad, Sweden. Shareholders wishing to have a matter addressed at the Annual General Meeting can submit their proposal to Getinge's Board Chairman by e-mail: arenden.bolagsstamma@getinge.com, or by mail: Getinge AB, Att: Bolagsstämmoärenden, Box 8861, SE-402 72 Gothenburg, Sweden. To ensure inclusion in the notice and thus in the Annual General Meeting's agenda, proposals must be received by the company not later than March 5, 2019.

Assurance

The Board of Directors and CEO assure that the interim report provides a true and fair review of the Parent Company and the Group's operations, position and earnings and describes the material risks and uncertainties faced by the Parent Company and the Group.

	Gothenburg, January 30, 2019
Carl Bennet Chairman	Johan Bygge	Cecilia Daun Wennborg
Barbro Fridén	Dan Frohm	Sofia Hasselberg
Peter Jörmalm	Rickard Karlsson	Johan Malmquist
Mattias Perjos President & CFO	Malin Persson	Johan Stern Vice Chairman

This interim report is unaudited.

GETINGE *

Consolidated financial statements

Consolidated income statement

SEKM	Note	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Net sales	$\overline{2}$	7,890	7,371	24,172	22,495
Cost of goods sold	3	$-4,315$	$-4,179$	$-13,119$	$-11,783$
Gross profit	$\overline{2}$	3,575	3,192	11,053	10,712
Selling expenses	3	$-1,307$	$-1,265$	$-5,202$	$-4,980$
Administrative expenses	3	$-791$	$-698$	$-3,090$	$-2,760$
Research and development costs		$-175$	$-160$	$-691$	$-594$
Acquisition expenses		$-0$	$-1$	$-4$	$-4$
Restructuring costs		46	$-124$	$\overline{4}$	$-759$
Other operating income and expenses 1)		$-140$	$-99$	$-2,354$	$-122$
Operating profit/loss (EBIT)	2,3	1,208	845	$-284$	1,493
Net financial items	$\overline{2}$	$-104$	$-127$	$-340$	$-560$
Profit/loss after financial items	$\overline{2}$	1,104	718	$-624$	933
Taxes		$-389$	242	$-315$	184
Net profit/loss for the period from continuing operations		715	960	$-939$	1,117
Net profit for the period from discontinued operations 2)	9				280
Net profit/loss for the period from continuing and discontinued			94
operations		715	1,054	$-939$	1,397
Attributable to:
Parent Company shareholders
Profit/loss from continuing operations		713	953	$-967$	1,096
Profit from discontinued operations			94		280
Profit/loss from continuing and discontinued operations		713	1,047	$-967$	1,376
Non-controlling interests
Profit from continuing operations		$\overline{2}$	$\overline{7}$	28	21
Profit from discontinued operations			$\sim$
Profit from continuing and discontinued operations		$\overline{2}$	$\overline{7}$	28	21
Earnings per share, SEK3)		2.62	3.84	$-3.55$	5.49
Of which, continuing operations, SEK		2.62	3.50	$-3.55$	4.37
Of which, discontinued operations, SEK			0.34		1.12
Weighted average number of shares for calculation of earnings per share $(000s)^4$		272,370	272.370	272,370	250.720

Of which SEK-350 M is related to ongoing investigations in Brazil (provision made in the first quarter of 2018) and SEK-1,800 M pertains to surgical Mesh-related claims (provision $1)$

The shares in Arjo were distributed to Getinge's shareholders in December 2017 and in this report Arjo is recognized separately as a discontinued operation in accordance with
The shares in Arjo were distributed to Getinge' $2)$ IFRS 5.

Before and after dilution $3)$
4)

The information for the January-December 2017 period has been adjusted for the bonus issue effect of the rights issue

Consolidated statement of comprehensive income

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Net profit/loss for the period from continuing and discontinued
operations	715	1,054	$-939$	1,397
Other comprehensive income
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined-benefit pension plans	107	$-19$	143	179
Tax attributable to items that cannot be restated in profit	$-7$	$-78$	$-15$	$-159$
Items that can later be restated in profit for the period
Translation differences and hedging of net investments	$-151$	647	844	$-762$
Cash flow hedges	21	89	$-60$	561
Reversal of translation differences and hedges, discontinued operations		$-127$		$-127$
Tax attributable to items that can be restated in profit	65	26	304	-448
Other comprehensive income for the period, net after tax	35	538	1,216	$-756$
Total comprehensive income for the period	750	1,592	277	641
Comprehensive income attributable to:
Parent Company shareholders	750	1,572	230	609
Non-controlling interests	0	20	47	32

$D = 24$

$D = 04$

Consolidated balance sheet

SEKM Note	Dec 31 2018	Dec 31 2017
Assets
Intangible assets	24,098	23,045
Tangible assets	3,160	2,911
Financial assets	1,946	1,586
Inventories	4,544	4,879
Accounts receivable	6,108	6,067
Other current receivables	2,223	2,088
Cash and cash equivalents 6	1,273	1,526
Total assets	43,352	42,102
Equity and liabilities
Equity	19,655	19,806
6 Provisions for pensions, interest-bearing	3,035	3,081
Other interest-bearing liabilities 6	10,829	11,237
Other provisions	3,771	2,202
Accounts payable	1,868	2,025
Other non-interest-bearing liabilities	4,194	3,751
Total equity and liabilities	43,352	42,102

Changes in equity for the Group

		Other				Non-
		capital		Retained		controlling	Total
SEKM	Share capital	provided	Reserves 1)	earnings	Total	interests	equity
Opening balance at January 1, 2017	119	5,960	955	13,474	20,508	408	20,916
Total comprehensive income for the period	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$-787$	1.396	609	32	641
Share-based remuneration	$\sim$	$\sim$	$\overline{\phantom{a}}$	$-4$	-4	$\sim$	$-4$
Dividend	$\sim$	-	۰	$-477$	$-477$	$-18$	$-495$
Rights issue 2)	17	4.264	$\overline{\phantom{a}}$		4,281	$\overline{\phantom{0}}$	4,281
Distribution of Arjo 3)	$\overline{\phantom{a}}$	$-3.435$	$\sim$	$-2,098$	$-5,533$	$\overline{\phantom{a}}$	$-5,533$
Closing balance at December 31, 2017	136	6,789	168	12,291	19,384	422	19,806
Opening balance at January 1, 2018	136	6,789	168	12,291	19,384	422	19,806
Total comprehensive income for the period	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	1,067	$-837$	230	47	277
Share-based remuneration	$\equiv$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$-4$	-4	$\overline{\phantom{a}}$	$-4$
Dividend	$\sim$	$\sim$	۰	$-409$	$-409$	$-15$	$-424$
Closing balance at December 31, 2018	136	6.789	1.235	11.041	19,201	454	19,655

Reserves pertain to cash flow hedges, hedges of net investments and translation differences.
After deductions for transaction costs and taking tax effects into consideration. $\begin{array}{c} 1) \ 2) \ 3) \end{array}$

Including transaction costs and taxes.

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Operating activities
Operating profit (EBIT) for continuing operations	1.208	845	$-284$	1.493
Operating profit (EBIT) for discontinued operations	$\bar{a}$	$-21$	$\overline{\phantom{a}}$	294
Add-back of depreciation, amortization and write-downs	457	707	1.808	2,609
Other non-cash items 1)	$-204$	20	2.073	51
Add-back of restructuring costs 2)	$-46$	154	$-4$	887
Paid restructuring costs	$-70$	$-156$	$-261$	$-539$
Financial items	$-99$	$-169$	$-325$	$-663$
Taxes paid	$-65$	$-43$	$-366$	$-479$
Cash flow before changes in working capital	1,181	1,337	2,641	3,653
Changes in working capital
Inventories	515	402	$-36$	$-910$
Current receivables	$-1,459$	$-1,644$	$-30$	$-653$
Current liabilities	447	985	$-72$	673
Cash flow from operating activities	684	1,080	2,503	2,763
Investing activities
Acquisition of operations			$-4$	$-81$
Investments in intangible assets and tangible assets	$-378$	$-472$	$-1,380$	$-1,663$
Divestment of non-current assets	15	5	45	30
Cash flow from investing activities	$-363$	$-467$	$-1,339$	$-1,714$
Financing activities
Change in interest-bearing liabilities	24	18	$-1,005$	$-4,276$
Change in interest-bearing receivables	$-17$	$-34$	$-11$	$-56$
Distribution of Arjo	$\overline{\phantom{a}}$	$-623$		$-623$
Dividend paid		$-3$	$-424$	$-495$
Rights issue				4,281
Cash flow from financing activities	$\overline{7}$	$-642$	$-1,440$	$-1,169$
Cash flow for the period	328	$-29$	$-276$	$-120$
Cash and cash equivalents at the beginning of the period	940	1,521	1,526	1,680
Translation differences	5	34	23	$-34$
Cash and cash equivalents at the end of the period	1.273	1.526	1.273	1.526

1)

2)

Note 1 Accounting policies

The Group's interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the Parent Company, the report has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2. The accounting policies adopted are consistent with those applied for the 2017 Annual Report and should be read in conjunction with that Annual Report. The interim report provides alternative performance measures for monitoring the Group's operations. Percentual changes and key figures in the report have been calculated based on the rounded amounts as presented in the report. Unless otherwise specified, all figures pertain to SEK M and figures in parentheses pertain to the year-earlier period.

New accounting policies

The Group has assessed the effects of the implementation of IFRS 9 Financial instruments and IFRS 15 Revenue from Contracts with Customers and has concluded that there are no material differences between these new standards and the accounting policies previously applied by the Group as regards the recognition and measurement of financial instruments, impairment of doubtful receivables and revenue recognition. Accordingly, the introduction of IFRS 9 and IFRS 15, which apply from January 1, 2018, did not impact the Group's equity.

IFRS 16 Leases came into effect as of 1 January 2019. The group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Thus all right-of-use assets will be measured at the amount of the lease liability on adoption. In applying IFRS 16 for the first time, Getinge has used a single discount rate for leases with reasonably similar characteristics. As Getinge will use the simplified transition approach the group has excluded initial direct costs for the measurement of the right-of-use asset at the date of initial application and has used assessment in determining the remaining lease period in connection with the initial application of the standard. The implementation of IFRS 16 will result in that almost all leases being recognized on the balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and afinancial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. IFRS 16 will increase the total assets for the Group, as the new lease accounting for lessees implies that all material lease contracts shall be recognized in the balance sheet. At the same time the new standard will have a positive impact on operating profit/loss compared to today, as a part of the lease payments will be recognized as interest expense within the finance net. The new standard will therefore affect several of the Group's key performance indicators. For the remaining lease commitments the group expects to recognize lease liabilities of approximately SEK 1,100 M and right-of-use assets of approximately SEK 1,100 M on 1 January 2019, primarily relating to leased vehicles and premises.

For more information about the new standards, refer to page 75 in the 2017 Annual Report.

Restated segment information

Getinge reports Life Science as a new business area from January 1, 2018, and segment information for 2017 was thus restated. Life Science was previously part of the Surgical Workflows business area.

Reclassification of costs

Costs the 2017 comparative year were reclassified between cost of goods sold and administrative expenses to reflect organizational changes in functions including Quality and IT. These reclassifications entail that cost of goods sold declined by SEK 50 M in the first quarter of 2017 and SEK 60 M in the second quarter of the same year. The decline in the cost of goods sold for the full-year 2017 thus amounted to SEK 110 M. Administrative expenses increased at a corresponding amount. The reclassifications affect only the Surgical Workflows business area.

Change in accounting policy for the Parent Company

The Parent Company changed its accounting policy for Group contributions in 2018. Group contributions paid and received are now recognized as appropriations according to the alternative rule in RFR 2 and for this reason Group contributions were reclassified from Result from participations in Group companies to Appropriations.

Distribution of Arjo

The distribution of Ario in December 2017 is recognized in this report in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Net profit for the period for the discontinued operations is recognized separately in the consolidated income statement under the item "Net profit for the period from discontinued operations." This means that income and expenses for Arjo are excluded from other income-statement items for all reported periods. The discontinued operations were not separated in the consolidated cash flow statement. Cash flow disclosures for these operations are instead recognized in Note 9. Only assets and liabilities remaining in the Group after the distribution of Arjo are recognized in the balance sheet, meaning that Arjo is not included in the balance sheet as per December 31, 2017.

Note 2 Segment overview

Net sales, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Acute Care Therapies	3,855	3,661	13,013	12,201
Life Science	722	593	2,194	1,947
Surgical Workflows	3,313	3,117	8,965	8,347
Total	7,890	7,371	24,172	22,495
Gross profit, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Acute Care Therapies	2,173	1,894	7,111	6,787
Life Science	250	225	776	749
Surgical Workflows	1,152	1,073	3,166	3,176
Total	3,575	3,192	11,053	10,712
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Operating profit (EBIT), SEK M	2018	2017	2018	2017
Acute Care Therapies	858	443	$-100$	1,131
Life Science	127	102	271	364
Surgical Workflows	302	349	$-191$	211
Group functions and other 1)	$-79$	$-49$	$-264$	$-213$
Operating profit/loss (EBIT)	1,208	845	$-284$	1,493
Net financial items	$-104$	$-127$	$-340$	$-560$
Profit/loss after financial items	1,104	718	$-624$	933

Group functions and other refers mainly to central functions such as finance, communication and HR. $1)$

Note 3 Depreciation, amortization and write-downs

SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Acquired intangible assets	$-127$	$-141$	$-570$	$-586$
Intangible assets	$-207$	$-343$	$-775$	$-943$
Tangible assets	$-123$	$-119$	$-463$	$-437$
Total	$-457$	$-603$	$-1,808$	$-1,966$
of which write-downs	$-16$	-150	$-117$	$-203$
SEKM	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Cost of goods sold	$-222$	$-350$	$-799$	$-891$
Selling expenses	$-141$	$-161$	$-647$	$-661$
Administrative expenses	$-87$	$-84$	$-333$	$-333$
Research and development costs	$-7$	$-7$	$-29$	$-26$
Restructuring costs	$\sim$	$-1$		$-55$
Total	$-457$	$-603$	$-1,808$	$-1,966$
of which write-downs	$-16$	$-150$	$-117$	-203

Note 4 Quarterly results

	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar
SEKM	2018	2018	2018	2018	2017	2017	2017	2017
Net sales	7,890	5,683	5,731	4,868	7,371	4,944	5,369	4,811
Cost of goods sold	$-4.315$	$-3.263$	$-3.077$	$-2.464$	$-4.179$	$-2.496$	$-2.725$	$-2,383$
Gross profit	3.575	2.420	2.654	2.404	3,192	2.448	2.644	2,428
Operating expenses	$-2.367$	$-4.156$	$-2.249$	$-2.565$	$-2.347$	$-2.144$	$-2.602$	$-2,126$
Operating profit/loss (EBIT)	1.208	$-1,736$	405	$-161$	845	304	42	302
Net financial items	$-104$	$-41$	$-74$	$-121$	$-127$	$-132$	$-158$	$-143$
Profit/loss after financial items	1.104	$-1.777$	331	$-282$	718	172	$-116$	159
Taxes	$-389$	333	$-240$	$-19$	242	$-47$	31	$-42$
Net profit/loss for the period from	715	$-1,444$	91	$-301$	960	125	$-85$	117
aantinuing anavatiana.

continuing operations

Note 5 Adjustment items

Adjusted EBITA, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Acute Care Therapies	1,029	847	2,533	2,500
Life Science	130	102	277	369
Surgical Workflows	331	474	142	445
Group functions and other (incl. eliminations)	$-78$	$-46$	$-263$	$-206$
Total, Group	1,412	1,377	2,689	3,108
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Adjustments of EBITA, SEK M	2018	2017	2018	2017
Specification of items affecting comparability that impact EBITA
Acquisition and restructuring costs, Acute Care Therapies	34	$-61$	$-5$	$-607$
Acquisition and restructuring costs, Life Science				$-2$
Acquisition and restructuring costs, Surgical Workflows	12	$-61$	5	$-147$
Write-down of inventories, Acute Care Therapies 1)	$\overline{\phantom{a}}$	$-17$		$-17$
Write-down of R&D, Acute Care Therapies 1)	$\overline{\phantom{a}}$	$-122$		$-122$
Write-down of inventories, Surgical Workflows 1)	$\hspace{1.0cm} - \hspace{1.0cm}$	$-32$	$-91$	$-32$
Write-down of R&D, Surgical Workflows 1)	$-7$	$-26$	$-11$	$-26$
Write-down of receivables, Acute Care Therapies 3)	$-83$	$\overline{\phantom{a}}$	$-83$
Write-down of receivables, Life Science 3)	$-3$	$\sim$	$-3$	$\overline{\phantom{a}}$
Write-down of receivables, Surgical Workflows 3)	$-37$	$\sim$	$-37$
Provision related to Mesh, Acute Care Therapies 3)		$\overline{\phantom{a}}$	$-1,800$
Provision for ongoing investigation in Brazil, Acute Care Therapies 3)	$\hspace{1.0cm} \rule{1.5cm}{0.15cm}$	$-69$	$-210$	-69
Provision for ongoing investigation in Brazil, Surgical Workflows 3)	$\overline{\phantom{m}}$		$-140$
Other, Acute Care Therapies 2)	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$-24$
Other, Surgical Workflows 1)	7	$\overline{\phantom{a}}$	$\Omega$
Other, Surgical Workflows 2)	$\overline{a}$	$\overline{\phantom{a}}$	$-4$
Group functions and other (incl. eliminations)		$-3$		$-7$
Total, Group	$-77$	$-391$	$-2,403$	$-1,029$
Items affecting comparability per segment
Acute Care Therapies	$-49$	$-269$	$-2,122$	$-815$
Life Science	$-3$	$\sim$	$-3$	$-2$
Surgical Workflows	$-25$	$-119$	$-278$	$-205$
Group functions and other (incl. eliminations) Total, Group	$-77$	-3 $-391$	$-2.403$	$-7$ $-1.029$
Reported in Cost of goods sold 1) Reported in Operating expenses 2)
Reported in Other operating income and operating expenses 3)
	$Ort-Der$	Oct-Dec	Jan-Dec	Jan-Dec

EBITA, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Acute Care Therapies	980	578	411	1,685
Life Science	127	102	274	367
Surgical Workflows	306	355	$-136$	240
Group functions and other (incl. eliminations)	$-78$	$-49$	$-263$	$-213$
Total, Group 1)	1,335	986	286	2.079

The previously presented EBITA in the interim report for January-September 2018 was revised in a total amount of SEK-97 M, of which SEK-66 M pertains to Acute Care Therapies
and SEK-31 M to Surgical Workflows. This revisio $1)$

Adjustments of EBIT (in addition to the above adjustments of EBITA), SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Specification of items affecting comparability that impact EBIT but not EBITA
Write-down of acquired intangible assets, Acute Care Therapies 2)			$-66$
Write-down of acquired intangible assets, Surgical Workflows 2)			$-31$
Total, Group 1)			$-97$

Items affecting comparability that impact EBIT but not EBITA refer to write-downs of acquired intangible assets.
Reported in operating expenses $\begin{pmatrix} 1 \ 2 \end{pmatrix}$

Adjustments of EBIT, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Items affecting comparability that impact EBITA (according to above)	$-77$	$-391$	$-2,403$	$-1,029$
Items affecting comparability that impact EBIT but not EBITA (according to above)		$\overline{\phantom{a}}$	$-97$
Total, Group	$-77$	$-391$	$-2,500$	$-1,029$
Adjustment of tax, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Amortization and write-down of acquired intangible assets 1)	127	141	473	586
Items affecting comparability	77	391	2,500	1,029
Adjustment items, total	204	532	2,973	1,615
Tax effect on adjustment items 2)	$-22$	$-144$	$-622$	$-436$
Adjustment for tax items affecting comparability $8^{3/4}$ )	50	$-302$	227	$-302$
Total, Group	28	$-446$	$-395$	$-738$

Excluding write-downs classified as items affecting comparability
Tax effect on tax deductible adjustment items
January-December 2018: Tax item affecting comparability primarily refers to the provision of SEK 114 M for sel $\begin{array}{c} 1) \ 2) \ 3) \end{array}$ Tax Reform.
- October-December 2018: The tax item affecting comparability of SEK 50 M refers to tax risks related to Brazil.
-

$4)$

Note 6 Consolidated net interest-bearing debt

SEKM	Dec 31 2018	Dec 31 2017
Other interest-bearing liabilities	10.829	11.237
Provisions for pensions, interest-bearing	3.035	3,081
Interest-bearing liabilities	13,864	14,318
Less cash and cash equivalents	$-1.273$	$-1.526$
Net interest-bearing debt	12,591	12.792

Note 7 Key figures for the Group

Financial and operative key figures	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Key figures based on Getinge's financial targets
Organic growth in net sales, %	2.4	2.5	4.9	1.3
Earnings per share 1 ), SEK	2.62	3.50	$-3.55$	4.37
Other operative and financial key figures
Organic growth in order intake, %	$-3.1$	6.6	2.5	2.5
Gross margin, %	45.3	43.3	45.7	47.6
Selling expenses, % of net sales	16.6	17.2	21.5	22.1
Administrative expenses, % of net sales	10.0	9.5	12.8	12.3
Research and development costs, gross as a % of net sales	3.9	4.0	5.2	5.0
Operating margin, %	15.3	11.5	$-1.2$	6.6
EBITDA, SEK M	1,665	1,448	1,524	3,459
Average number of shares 2 ), thousands	272,370	272,370	272,370	250,720
Number of shares at the end of the period 2 , thousands	272,370	272,370	272,370	272,370
Interest-coverage ratio, multiple			9.8	8.6
Net debt/equity ratio, multiple			0.64	0.65
Net debt/Rolling 12m adjusted EBITDA3), multiple			3.2	3.0
Return on equity, %			$-4.7$	6.6
Equity/assets ratio, %				47.0
Equity per share 3 ), SEK				72.72
Number of employees			10,515	10,684

Before and after dilution (no dilutive effect during the periods stated)
The information for the January-December 2017 period has been adjusted for the bonus issue effect of the rights issue
Refers to continuing and discon

$\begin{array}{c} 1) \ 2) \ 3) \end{array}$

Alternative performance measures

Alternative performance measures refer to financial measures used by the company's management and investors to evaluate the Group's earnings and financial position and that cannot be directly read or derived from the financial statements. These financial measures are intended to facilitate analysis of the Group's performance. The alternative performance measures are not to be considered a substitute for, but rather a supplement to, the financial statements prepared in accordance with IFRS. The financial measures recognized in this report may differ from similar measures used by other companies.

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Adjusted gross profit, SEK M	2018	2017	2018	2017
Gross profit	3,575	3,192	11,053	10,712
Add-back of: Depreciation, amortization and write-downs of intangible
and tangible assets	222	350	799	891
Other items affecting comparability Adjustment for write-downs included in other items		197	102	197
affecting comparability	$-7$	$-148$	$-11$	-148
Adjusted gross profit	3,790	3,591	11,943	11,652
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Adjusted EBITDA, SEK M	2018	2017	2018	2017
Operating profit/loss (EBIT)	1,208	845	$-284$	1,493
Add-back of:
Depreciation, amortization and write-downs of intangible
and tangible assets	330	462	1,238	1,380
Amortization and write-down of acquired intangible assets	127	141	570	586
Other items affecting comparability	123	266	2,500	266
Acquisition and restructuring costs	$-46$	125	$\mathbf 0$	763
Adjustment for write-downs included in other items
affecting comparability and restructuring costs	$-7$	$-149$	$-108$	$-203$
Adjusted EBITDA	1,735	1,690	3,916	4,285
Adjusted EBITA, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Operating profit/loss (EBIT)	1,208	845	$-284$	1,493
Add-back of:
Amortization and write-down of acquired intangible assets	127	141	570	586
Other items affecting comparability	123	266	2,500	266
Acquisition and restructuring costs	$-46$	125	$\boldsymbol{0}$	763
Adjustment for write-downs of acquired intangible assets
included in other items affecting comparability and
restructuring costs			-97
Adjusted EBITA	1,412	1,377	2,689	3,108
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Adjusted EBIT, SEK M	2018	2017	2018	2017
Operating profit/loss (EBIT)	1,208	845	$-284$	1,493
Add-back of:
Other items affecting comparability	123	266	2,500	266
Acquisition and restructuring costs	$-46$	125	$\mathbf{0}$	763
Adjusted EBIT	1,285	1,236	2,216	2,522
Adjusted net profit/loss for the period from continuing operations, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Net profit/loss for the period from continuing operations	715	960	$-939$	1,117
Add-back of:
Amortization and write-down of acquired intangible assets	127	141	570	586
Other items affecting comparability	123	266	2,500	266
Acquisition and restructuring costs	$-46$	125	0	763
Adjustment for write-downs of acquired intangible assets
included in other items affecting comparability and
restructuring costs			$-97$ 227
Tax items affecting comparability Tax on add-back items	50 $-22$	$-302$	$-622$	$-302$ $-436$
Adjusted net profit for the period from continuing	947	$-144$ 1,046	1,639	1,994
operations

Note 8 Acquisitions

No acquisitions took place in January-December 2018.

Note 9 Discontinued operations

Distribution and listing of Arjo

Arjo was distributed to the shareholders of Getinge AB and listed on Nasdaq Stockholm on December 12, 2017. In this report, Arjo is recognized as a discontinued operation in the consolidated income statement with retrospective effect for prior periods and in accordance with IFRS 5.

Income statement for discontinued operations, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Net sales		1,309		6,929
Cost of goods sold		$-770$		$-3,863$
Gross profit		539		3,066
Selling expenses		$-303$		$-1,425$
Administrative expenses		$-217$		$-992$
Research and development costs		$-27$		$-118$
Restructuring costs		$-31$		$-250$
Other operating income and expenses		18		13
Operating profit/loss (EBIT)	-	$-21$	۰	294
Net financial items		$-23$		-84
Profit/loss after financial items		-44	$\blacksquare$	210
Taxes		11		$-57$
Net profit/loss for the period from the operations	-	-33	$\blacksquare$	153
Profit from translation differences and hedges	-	127	-	127
Net profit/loss for the period	-	94	-	280

Cash flow from discontinued operations, SEK M	Oct-Dec 2018	Oct-Dec 2017	Jan-Dec 2018	Jan-Dec 2017
Cash flow from operating activities		$-128$	-	269
Cash flow from investing activities		$-27$		$-320$
Cash flow from financing activities	-	-1	$\overline{\phantom{0}}$	$\overline{4}$
Cash flow for the period		$-158$	-	$-47$

Parent Company financial statements

Parent Company's income statement

	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEKM	2018	2017	2018	2017
Administrative expenses	55	$-19$	$-288$	$-251$
Other operating expenses	$-10$	$\overline{\phantom{a}}$	$-311$
Operating result	45	$-19$	$-599$	$-251$
Result from participations in Group companies 1)	608	$-376$	8,951	2.859
Interest income and other similar income 2)		$-298$	206	1.614
Interest expenses and other similar expenses 2)	$-171$	$-133$	$-1.642$	$-574$
Profit/loss after financial items	483	$-826$	6,916	3,648
Appropriations	2,188	۰	2.188	$-420$
Taxes	$-440$	194	$-119$	$-99$
Net profit/loss for the period 3)	2,231	$-632$	8,985	3.129

Internal restructuring took place in June which resulted in a liquidation gain of SEK 8,329 M
Interest income and other similar income and interest expenses and other similar expenses include exchange-rate gains and losses $\begin{smallmatrix}1\end{smallmatrix}$ ) Interferience contracts and antenna interferience chemical contracts in the distribution of the particle in the particle of the period corresponds to net profit for the period Total comprehensive income for the period corr

$3)$

Parent Company's balance sheet

SEKM	Dec 31 2018	Dec 31 2017
Assets
Intangible assets	58	86
Tangible assets	9	6
Participations in Group companies	28,062	25,455
Deferred tax assets	80	189
Long-term receivables	29	53
Receivables from Group companies	2,718	953
Current receivables	174	191
Total assets	31,130	26,933
Equity and liabilities
Equity	21,156	12,584
Long-term liabilities	4,206	4,257
Long-term liabilities to Group companies	718	659
Other provisions	10
Current liabilities to Group companies	1,493	2,990
Current liabilities	3,547	6,443

Definitions

Financial terms

Return on equity. Rolling 12 months' profit after tax in relation to average equity.

Gross margin. Gross profit in relation to net sales.

Adjusted gross profit. Gross profit with add-back of depreciation, amortization and write-downs and other items affecting comparability.

EBIT. Operating profit.

Adjusted EBIT. Operating profit with addback of acquisition and restructuring costs and other items affecting comparability.

EBITA. Operating profit before depreciation and write-down of acquired intangible assets.

Adjusted EBITA. EBITA with add-back of acquisition and restructuring costs and other items affecting comparability.

EBITA margin. EBITA in relation to net sales.

EBITDA. Operating profit before depreciation, amortization and write-down.

Adjusted EBITDA. EBITDA with add-back of acquisition and restructuring costs and other items affecting comparability.

EBITDA margin. EBITDA in relation to net sales.

Equity per share, SEK. Equity in relation to the number of shares at the end of the period.

Cash flow after net investments. Cash flow from operating activities and investing activities, excluding acquisitions and divestment of operations.

Net debt/equity ratio. Net interest-bearing debt in relation to equity.

Organic change. A change in percentage adjusted for currency, acquisitions and divestments in the past period compared with the year-earlier period.

Adjusted net profit for the period. Net profit for the period with add-back of amortization and write-down of acquired intangible assets, acquisition and restructuring costs, other items affecting comparability and tax effect of add-back of income-statement items.

Adjusted profit before tax Profit before tax for the period with add-back of amortization and write-down of acquired intangible assets, acquisition and restructuring costs and other items affecting comparability.

Earnings per share. Net profit for the period attributable to Parent Company shareholders in relation to average number of shares.

Adjusted earnings per share. Adjusted net profit for the period attributable to Parent Company shareholders in relation to average number of shares.

Interest-coverage ratio. Rolling 12 months' adjusted EBITDA in relation to rolling 12 months' net interest.

Operating margin. Operating profit (EBIT) in relation to net sales.

Equity/assets ratio. Equity in relation to total assets.

Currency transaction effect. Exchange of current year's volumes of foreign currency at this year's exchange rates, compared

with the exchange rates in the preceding vear.

Medical terms

Sterilizer. A device to destroy microorganisms on surgical instruments, usually by bringing to a high temperature with steam.

Cardiopulmonary. Pertaining or belonging to both heart and lung.

Cardiovascular. Pertaining or belonging to both heart and blood vessels.

Endoscope. Equipment for visual examination of the body's cavities, such as the stomach.

Endovascular. Vascular treatment using catheter technologies.

Artificial grafts. Artificial vascular implants.

Low temperature sterilization. A device used to sterilize surgical instruments which cannot be sterilized with high temperature steam. It is mainly used for instruments used in the minimal invasive and robotic surgery.

Stent. A tube for endovascular widening of blood vessels.

Vascular intervention. A medical procedure conducted through vascular puncturing instead of using an open surgery method.

Geographical areas

Americas. North, South and Central America.

APAC. Asia and Pacific.

EMEA. Europe, Middle East and Africa.

Teleconference

Teleconference with President & CEO Mattias Perjos and CFO Lars Sandström on January 30, 2019 at 3:00-4:00 p.m. CET. Please see dial in details below to join the conference:

SE: +46850558350 UK: +443333009262 US: +16467224957

A presentation will be held during the telephone conference. To access the presentation, please use this link: https://tv.streamfabriken.com/getinge-q4-2018

Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reportspresentations/

A recording of the teleconference will be available for three days via the following link: https://tv.streamfabriken.com/getinge-q4-2018

Financial information

Updated information on, for example, the Getinge share and corporate governance is available on Getinge's website www.getinge.com. The Annual Report, year-end report and interim reports are published in Swedish and English and are available for download at www.getinge.com. The following dates have been set for the publication of financial communication:

March 2019	2018 Annual Report
April 23, 2019	Interim report January-March 2019
April 23, 2019	Annual General Meeting
July 17, 2019	Interim report January-June 2019
October 17, 2019	Interim report January-September 2019
January 29, 2020	Year-end report 2019
March 2020	2019 Annual Report

Contact

Jeanette Hedén Carlsson, Executive Vice President, Communications & Brand Management +46 (0) 10 335 1003 Jeanette.hedencarlsson@getinge.com

Lars Mattsson, Head of Investor Relations +46 (0)10 335 0043 lars.mattsson@getinge.com

This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on January 30, 2019 at 1:00 p.m. CET.

Getinge AB (publ)

Lindholmspiren 7 SE-417 56 Gothenburg Sweden

Tel: +46 (0)10 335 0000 E-mail: info@getinge.com Corporate registration number: 556408-5032 www.getinge.com