Getinge

Quarterly Report • Jul 17, 2018

Interim report

January – June 2018

Comments from Mattias Perjos, President & CEO

Continued healthy growth – improvements proceeding as planned

"Getinge is continuing to generate growth on a broad front. The order intake increased by slightly more than 10% during the quarter and net sales 6% organically, meaning that we are adjusting our outlook for the full-year to be well within 2-4% organic growth in net sales. The gross margin was negatively impacted by market and product mix effects as a result of the strong sales in primarily emerging markets and in capital goods. This is natural in a growth phase and is expected to support future sales of disposables as the installed base expands. In addition, Surgical Workflows and Life Science increased their net sales at a higher rate than Acute Care Therapies, which also contributed to the Group's lower gross margin. Operating expenses stabilized after a number of quarters of gradual increases, but we are not ruling out slightly higher operating expenses in future quarters, mainly due to ongoing quality improvements linked to the Consent Decree with the FDA and the need to fill certain positions in the sales and service organization. All in all, I have a confident outlook for the second half of the year with a continued focus on innovation, customers, quality and cost awareness."

April – June 2018 in brief

• Order intake increased organically by 10.2%, with a robust performance in capital goods and in emerging markets.
• Net sales increased organically by 6.0% also due to the favorable trend in capital goods and in emerging markets.
• Adjusted EBITA amounted to SEK 538 M (702) with profitability weighed down by lower gross margin due to the product and market mix.
• Currency effects impacted net sales by SEK +40 M, gross profit by SEK -32 M and EBITA by SEK -69 M.
• Adjusted earnings per share amounted to SEK 1.21 (1.62).
• Agreement signed with Brazilian authority, entailing a company fine of SEK 276 M, which is covered by previously communicated provision. An additional tax provision of SEK 64 M has been made for self correction oftax return.

January – June 2018 in brief

• Order intake increased organically by 6.7%.
• Net sales increased organically by 5.7%.
• Adjusted EBITA amounted to SEK 839 M (1,187).
• Adjusted earnings per share amounted to SEK 1.67 (2.64).
• Provision of SEK 350 M for the ongoing investigations and negotiations in Brazil, which has been communicated earlier.
• Paul Marcun was appointed President Surgical Workflows Business Area and took office end of June.
• Life Science is reported as a new Business Area from January 1, 2018.

Outlook 2018 (preceding outlook in parentheses)

• Organic sales growth is expected to be well within 2-4% (slightly positive) for the full-year 2018.
• Currency transaction effects are expected to have a negative impact of about SEK -175 M (-150) on the Group's 2018 EBIT.

Summary of financial performance1)

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Order intake	6,117	5,523	11,445	10,902	23,228
Organic change, %	10.2	-6.7	6.7	-2.6	2.5
Net sales	5,731	5,369	10,599	10,180	22,495
Organic change, %	6.0	-0.5	5.7	1.0	1.3
Adjusted gross profit	2,844	2,828	5,432	5,438	11,652
Margin, %	49.6	52.7	51.3	53.4	51.8
Adjusted EBITDA	833	997	1,424	1,772	4,285
Margin, %	14.5	18.6	13.4	17.4	19.0
Adjusted EBITA	538	702	839	1,187	3,108
Margin, %	9.4	13.1	7.9	11.7	13.8
Adjusted EBIT	418	553	608	883	2,522
Margin, %	7.3	10.3	5.7	8.7	11.2
Operating profit (EBIT)	405	42	244	344	1,493
Margin, %	7.1	0.8	2.3	3.4	6.6
Profit/loss before tax	331	-116	49	43	933
Net profit/loss for the period	91	-85	-210	32	1,117
Adjusted net profit for the period	340	397	471	647	1,994
Margin, %	5.9	7.4	4.4	6.4	8.9
Adjusted earnings per share, SEK	1.21	1.62	1.67	2.64	7.87
Earnings per share, SEK	0.30	-0.37	-0.83	0.10	4.37
Cash flow from operating activities2)	401	223	699	1,091	2,763

1) See page 3 for underlying calculations of adjusted performance measures. 2)Cash flow 2017 also includes Arjo, which was distributed to shareholders in December 2017.

Every care has been taken in the translation of this Financial Report. In the event of discrepancies, the Swedish original will supersede the English translation. Unless otherwise stated, all results in this report pertain to the continuing operations, excluding Arjo, which was distributed to shareholders in December 2017.

Group performance

Order intake

Apr – Jun 2018

Order intake business areas, SEK M Apr-Jun 2018 Apr-Jun 2017 Org Δ, % Jan-Jun 2018 Jan-Jun 2017 Org Δ, % Jan-Dec 2017 Acute Care Therapies 3,219 3,109 3.5 6,126 6,084 3.2 12,383 Life Science 576 464 20.3 1,131 1,016 10.6 2,011 Surgical Workflows 2,322 1,950 18.5 4,188 3,802 11.2 8,834 Total 6,117 5,523 10.2 11,445 10,902 6.7 23,228 Order intake regions, SEK M Apr-Jun 2018 Apr-Jun 2017 Org Δ, % Jan-Jun 2018 Jan-Jun 2017 Org Δ, % Jan-Dec 2017 Americas 2,319 2,241 5.6 4,491 4,517 4.8 9,149 APAC 1,327 1,190 10.6 2,349 2,118 12.6 4,744 EMEA 2,471 2,092 15.0 4,605 4,267 5.8 9,335

Total 6,117 5,523 10.2 11,445 10,902 6.7 23,228

Net sales

Apr – Jun 2018

Net sales business areas, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Acute Care Therapies	3,148	3,094	1.5	5,999	5,919	3.7	12,201
Life Science	550	406	32.7	992	867	14.0	1,947
Surgical Workflows	2,033	1,869	7.6	3,608	3,394	6.9	8,347
Total	5,731	5,369	6.0	10,599	10,180	5.7	22,495
							Jan
Net sales	Apr-Jun	Apr-Jun		Jan-Jun	Jan-Jun		Dec
regions, SEK M	2018	2017	Org Δ, %	2018	2017	Org Δ, %	2017
Americas	2,273	2,311	0.0	4,413	4,447	4.5	9,039
APAC	1,192	1,009	17.3	2,060	1,858	12.7	4,684
EMEA	2,266	2,049	7.2	4,126	3,875	3.7	8,772
Total	5,731	5,369	6.0	10,599	10,180	5.7	22,495

Net sales specified by capital goods and consumables, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Capital goods	2,333	2,056	12.7	4,060	3,696	11.0	9,589
Consumables	3,398	3,313	1.8	6,539	6,484	2.7	12,906
Total	5,731	5,369	6.0	10,599	10,180	5.7	22,495

• Net sales increased organically by 6.7% in the quarter.

• Organic growth in order intake in all business areas and regions. • Particularly robust growth in Surgical Workflows in Eastern Europe, Middle East and Africa. • Acute Care Therapies reports a very strong order intake in APAC, with China performing particularly well in the quarter. • Very robust growth for Life Science in emerging markets.

• Organic growth in all business

• Very robust growth in APAC in all

• Strong performance for Surgical Workplaces and Life Science in

• Sales of capital goods continued to growth at a faster rate than disposables, which contributed to a negative mix effect on the gross

• In Americas, Life Science reported healthy growth, while Acute Care Therapies reported weaker sales. One of the reasons was increased competition in covered stents since the second

areas.

EMEA.

business areas.

quarter of 2017.

margin.

• Exchange rates impacted sales by +0.7% compared with Q2 2017.
• Volume, product and market mix effects impacted sales by +6.0% compared with Q2 2017.

Underlying earnings trend

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
SEK M Net sales	2018 5,731	2017 5,369	2018 10,599	2017 10,180	2017 22,495
Adjusted gross profit	2,844	2,828	5,432	5,438	11,652
Margin, %	49.6	52.7	51.3	53.4	51.8
Adjusted operating expenses	-2,011	-1,831	-4,008	-3,666	-7,367
Adjusted EBITDA	833	997	1,424	1,772	4,285
Margin, %	14.5	18.6	13.4	17.4	19.0
Depreciation, amortization and write-downs of tangible and intangible assets 1)	-295	-295	-585	-585	-1,177
Adjusted EBITA	538	702	839	1,187	3,108
Margin, %	9.4	13.1	7.9	11.7	13.8
A
Amortization and write-down of acquired intangible assets 1)	-120	-149	-231	-304	-586
Adjusted EBIT	418	553	608	883	2,522
Margin, %	7.3	10.3	5.7	8.7	11.2
B Acquisition and restructuring costs	-13	-511	-14	-539	-763
C Other items affecting comparability2)	-	-	-350	-	-266
Operating profit (EBIT)	405	42	244	344	1,493
Net financial items	-74	-158	-195	-301	-560
Profit/loss before tax	331	-116	49	43	933
Adjusted profit before tax (adjusted for A, B and C)	464	544	644	886	2,548
Margin, %	8.1	10.1	6.1	8.7	11.3
Taxes	-240	31	-259	-11	184
D Adjustment of tax 2)	116	-178	86	-228	-738
Adjusted net profit for the period (adjusted for A, B, C and D)	340	397	471	647	1,994
Margin, %	5.9	7.4	4.4	6.4	8.9
Of which, attributable to Parent Company's shareholders	330	392	455	638	1,973
Average number of shares, thousands	272,370	241,780	272,370	241,780	250,720
Adjusted earnings per share, SEK (adjusted for A, B, C and D)	1.21	1.62	1.67	2.64	7.87

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

Adjusted EBITA per business area1)

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
SEK M	2018	2017	2018	2017	2017
Acute Care Therapies	596	638	1,066	1,195	2,500
Margin, %	18.9	20.6	17.8	20.2	20.5
Life Science	52	64	109	168	369
Margin, %	9.5	15.8	11.0	19.4	19.0
Surgical Workflows	-39	49	-204	-78	445
Margin, %	-1.9	2.6	-5.7	-2.3	5.3
Group functions and other (incl. eliminations)	-71	-49	-132	-98	-206
Total	538	702	839	1,187	3,108
Margin, %	9.4	13.1	7.9	11.7	13.8

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

Adjusted EBITA – bridge between Apr-Jun 2017 and Apr-Jun 2018

• Currency effects impacted net sales by SEK +40 M, gross profit by SEK -32 M and EBITA by SEK - 69 M.
• The gross margin is negatively impacted by currency, product and market mix. Growth was particularly robust in capital goods and in emerging markets during the quarter. In addition, sales increased more in Surgical Workflows and Life Science than in Acute Care Therapies (which reported a higher gross margin).
• Operating expenses were in line with outcome in the first quarter of 2018, but were higher compared with the second quarter of 2017. This was mainly related to increased investment in sales, quality and R&D and negative currency effects. Furthermore, continuing Groupwide expenses after the distribution of Arjo negatively affected profitability.
• The tax expense for the period was impacted by a tax provision of SEK 64 M related to self correction of tax return due to non-deductible costs attributable to ongoing investigations in Brazil and SEK 88 M in revaluation of capitalized tax loss carryforwards due to the tax rate change in Sweden.
• Adjusted EBITA in Acute Care Therapies fell by SEK -42 M, mainly due to a negative currency effect of SEK -29 M and lower gross margin.
• In Life Science, adjusted EBITA declined by SEK -12 M, of which SEK -8 M was attributable to negative currency effects and the remainder mainly due to lower gross margin and higher operating expenses attributable to building up the business area.
• Adjusted EBITA in Surgical Workflows fell by SEK -88 M, primarily related to lower gross margin, negative currency effects of SEK 32 M and higher operating expenses as a result of continuing costs after the distribution of Arjo.

Adjusted operating expenses

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

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
SEK M	2018	2017	2018	2017	2017
Selling expenses	-1,141	-1,084	-2,260	-2,164	-4,319
Administrative expenses	-680	-581	-1,346	-1,233	-2,427
Research and development costs	-177	-150	-347	-272	-568
Other operating income and expenses	-13	-16	-55	3	-53
Total	-2,011	-1,831	-4,008	-3,666	-7,367

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

Adjusted EBITA – bridge between Apr-Jun 2017 and Apr-Jun 2018

Currency impact

SEK M	Apr-Jun 2018	Jan-Jun 2018
Net sales	40	-160
Gross profit	-32	-210
EBITDA	-61	-186
EBITA	-69	-194
Operating profit (EBIT)	-68	-183

Cash flow and financial position1)

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
SEK M	2018	2017	2018	2017	2017
Cash flow before changes in working capital	440	925	712	1,719	3,653
Changes in working capital	-39	-702	-13	-628	-890
Net investments in non-current assets	-354	-390	-653	-756	-1,633
Cash flow after net investments	47	-167	46	335	1,130
Net interest-bearing debt at end of the period			13,845	22,666	12,792
In relation to adjusted EBITDA2) R12M, multiple			3.5	N/A	3.0

1)Cash flows for 2017 also include Arjo, which was distributed to shareholders in December 2017. 2) See Note 5 and Note 7 (Alternative performance measures).

• Adjusted operating expenses remained higher than in the yearearlier period in 2017 due in part to investments in quality, sales and R&D and in part to continuing costs after the distribution of Arjo.

• Adjusted operating expenses rose by 0.7% or SEK 14 M compared with the first quarter of 2018.

• Net sales for the quarter were positively impacted by SEK 40 M in translation effects. Support mainly derived from the EUR, which offset the negative effect of the USD.

• EBIT for the quarter was impacted by translation effects of SEK -29 M and transaction effects of SEK -39 M.
• Working capital was impacted by the build-up of inventories, due to a high level of order intake.
• Payment of company fine of SEK 276 M related to ongoing investigations in Brazil is planned for the fourth quarter of 2018.

Research and development

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
R&D costs, gross	-346	-297	-666	-572	-1,123
In relation to net sales, %	6.0	5.5	6.3	5.6	5.0
Capitalized development costs	162	141	305	287	529
In relation to net sales, %	2.8	2.6	2.9	2.8	2.4
Research and development costs, net	-184	-156	-361	-285	-594
Amortization and write-downs of capitalized
R&D	-120	-119	-243	-238	-675
Of which write-downs	-	-	-	-	-193

• Gross expenses for R&D increased by 16.5%.
• Capitalized development costs rose by 14.9%
• Research and development costs increased by 17.9% net.

Update regarding Consent Decree with the FDA

SEK M	Jun 30 2018	Jun 30 2017	Dec 31 2017
Provision at beginning of period	556	371	371
Used amount	-92	-141	-296
Provisions	-	488	488
Translation differences	34	-8	-7
Provision at close of period	498	710	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 necessary corrections have been prepared for each unit. Necessary corrections according to the established plan at the two production units in the US are expected to be completed by the end of 2018. This work is expected to take longer 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 second quarter of 2018.

Other key events during the quarter

Getinge reached an agreement with the Brazilian Federal Public Prosecutor's Office (Ministério Público Federal) on a Leniency Agreement mainly related to the manipulation of tender procedures in Brazil. These cases mainly relate to 2004-2015, and primarily involve Getinge's Brazilian subsidiaries Maquet Cardiopulmonary do Brasil Indústria e Comércio Ltda and Maquet do Brasil Equipamentos Médicos Ltda.

The agreement entails that Getinge will pay a company fine corresponding to approximately SEK 276 M (BRL 121.8 M). The amount is included in the previous provision* made by Getinge for costs related to the Brazilian investigations and will not affect operating profit further. The fine will be paid during the fourth quarter of 2018. As a result of the fine, Getinge has made a provision of SEK 64 M for self correction of tax for non-deductible costs.

Getinge is currently in negotiations with other Brazilian authorities, which are expected to be completed in 2018.

It cannot be ruled out that any further agreements with authorities may have a material impact on Getinge's earnings and financial position, in addition to provisions made.

*Getinge has made two provisions for a total of SEK 419 M for costs related to the investigations in Brazil. SEK 69 M in the fourth quarter of 2017 and SEK 350 M in the first quarter of 2018.

• Improvements continue to take place in Hechingen in accordance with the revised plan from 2017.

• The unutilized provision totaled SEK 498 M at the end of the quarter, compared with SEK 536 M at the start of the quarter.

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 to 2020.

Order intake and net sales

• Healthy order intake in heart-lung machines, ventilators and intraaortic balloon pumps (IABP).
• Very robust growth in APAC, with China and India performing strongly.
• High net sales in heart-lung machines and intra-aortic balloon pumps.
• Healthy growth in heart-lung machines in East Asia and Latin America
• Lower sales of covered stents in the USA as a result of increased competition in this area since the second quarter of 2017. However, this decline is leveling off.
• Sales of capital goods declined slightly compared with the second quarter of 2017.
• Lower gross margin due to mix effects, primarily in the form of higher sales in emerging markets and lower sales of stents in the US. In addition, currency effects were negative.
• Operating profit was impacted by lower gross margin and higher quality costs. Additional costs cannot be ruled out in autumn 2018, mainly due to high intensity in improvements according to the Consent Decree with the FDA.
• Currency effects impacted sales by SEK +5 M, gross profit by SEK -14 M and EBITA by SEK -29 M.

Order intake regions, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Americas	1,563	1,565	2.0	2,988	3,139	0.6	6,234
APAC	647	567	13.7	1,154	1,024	15.2	2,191
EMEA	1,009	977	0.0	1,984	1,921	1.2	3,958
Total	3,219	3,109	3.5	6,126	6,084	3.2	12,383

Net sales regions, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Americas	1,552	1,633	-3.3	3,024	3,172	0.6	6,263
APAC	643	542	17.9	1,139	999	16.2	2,227
EMEA	953	919	0.4	1,836	1,748	2.2	3,711
Total	3,148	3,094	1.5	5,999	5,919	3.7	12,201

Net sales specified by capital goods and consumables, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Capital goods	770	790	-2.2	1,400	1,385	3.3	3,289
Consumables	2,378	2,304	2.8	4,599	4,534	3.9	8,912
Total	3,148	3,094	1.5	5,999	5,919	3.7	12,201

Underlying earnings trend1)

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Net sales	3,148	3,094	5,999	5,919	12,201
Adjusted gross profit	1,856	1,886	3,609	3,639	7,403
Margin, %	59.0	61.0	60.2	61.5	60.7
Adjusted EBITDA	769	809	1,411	1,533	3,174
Margin, %	24.4	26.1	23.5	25.9	26.0
Depreciation, amortization and write
downs of tangible and intangible assets	-173	-171	-345	-338	-674
Adjusted EBITA	596	638	1,066	1,195	2,500
Margin, %	18.9	20.6	17.8	20.2	20.5

1) See Note 3 for depreciation, amortization and write-downs, Note 5 for other items affecting comparability and Note 7 (alternative performance measures).

Key events in the business area

• A milestone was achieved in the quarter when CE marking was obtained for the software that enables high frequency oscillation (HFO) in Getinge's Servo-n ventilator. It means that the company becomes a full-service supplier to the key market for ventilators in neonatal care.
• With the launch of Flow-c, Getinge took a giant leap into the mid-segment of the anesthesia market. The reception from customers has been very positive.
• A first ever randomized multicenter international trial on extracorporeal membrane oxygenation (ECMO) to rescue lung injury in severe ARDS (EOLIA) was published in the prestigious New England Journal of Medicine. The results demonstrated that the care of the patient with appropriate ventilation management combined with planned early ECMO is an effective strategy for treatment of patients suffering from severe acute respiratory distress syndrome (ARDS).
• Getinge's market-leading CARDIOSAVE intra-aortic balloon pump received industry approval under the EN 60601 standard on the safety and essential performance of medical electrical equipment, a requirement for all markets in the EU.

6 | Interim report Jan – Jun 2018

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 to 2020.

Order intake and net sales

• Very robust growth in all regions and across the product portfolio.

• Particularly high growth in disinfection and sterilizers.

• Very robust growth in all regions and product categories.
• EMEA reported the largest increase in sales in absolute terms, primarily due to four major projects in the UK and Germany.
• Growth in capital goods continued to increase at a faster rate than consumables.
• The gross margin was adversely impacted by product mix effects with capital goods delivering significant growth. Currency effects were also negative.
• Operating profit was negatively affected by the lower gross margin and higher operating expenses in sales and administration connected with the establishment of the business area. The business area was also adversely impacted by continuing costs after the distribution of Arjo.
• Currency effects impacted sales by SEK +12 M, gross profit by SEK -4 M and EBITA by SEK -8 M.

Order intake regions, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Americas	193	150	27.9	407	341	24.0	673
APAC	120	83	40.0	206	192	6.8	335
EMEA	263	231	8.2	518	483	2.6	1,003
Total	576	464	20.3	1,131	1,016	10.6	2,011

Net sales regions, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Americas	203	160	27.0	375	348	11.7	718
APAC	64	37	74.0	112	105	7.6	328
EMEA	283	209	29.9	505	414	17.6	901
Total	550	406	32.7	992	867	14.0	1,947

Net sales specified by capital goods and consumables, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Capital goods	349	246	38.8	607	500	20.5	1,183
Consumables	201	160	23.3	385	367	5.2	764
Total	550	406	32.7	992	867	14.0	1,947

Underlying earnings trend1)

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Net sales	550	406	992	867	1,947
Adjusted gross profit	196	172	382	359	790
Margin, %	35.6	42.4	38.5	41.4	40.6
Adjusted EBITDA	70	79	145	199	435
Margin, %	12.7	19.5	14.6	23.0	22.3
Depreciation, amortization and write downs of tangible and intangible assets	-18	-15	-36	-31	-66
Adjusted EBITA	52	64	109	168	369
Margin, %	9.5	15.8	11.0	19.4	19.0

1) See Note 3 for depreciation, amortization and write-downs, Note 5 for other items affecting comparability and Note 7 (alternative performance measures).

Key events in the business area

• Launch of Getinge Steam Sterilizer (GSS). This new series of steam sterilizers has been developed to meet the strict requirements from the growing segments of biopharmaceutical production and biomedical research. The launch took place at the ACHEMA exhibition in Frankfurt in June and the first deliveries to customers have already been made.

GSS). This new series of steam sterilizers has been
aanta fuam tha wuqudna aagmaanta af hianhaumaaautiaal

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 to 2020.

Order intake and net sales

Net sales regions, SEK M

Order intake regions, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Americas	563	526	9.8	1,096	1,037	11.4	2,242
APAC	560	540	2.7	989	902	10.8	2,218
EMEA	1,199	884	33.4	2,103	1,863	11.3	4,374
Total	2,322	1,950	18.5	4,188	3,802	11.2	8,834

Apr-Jun 2017

Americas 518 518 1.9 1,014 927 15.0 2,058 APAC 485 430 11.8 809 754 8.6 2,129 EMEA 1,030 921 8.8 1,785 1,713 1.9 4,160

Org Δ, % Jan-Jun

2018

Jan-Jun 2017

Org Δ, % Jan-Dec

2017

Apr-Jun 2018

• Very high net sales, with growth in
all regions.

• Particularly strong trend in Surgical Workplaces, with success in sales in emerging markets and in major projects.

• Very high order intake, with growth in all regions. • Particularly strong performance in Infection Control and Surgical

Workplaces.

• Growth in capital goods is continuing to increase at a fast rate.
• The gross margin was negatively impacted by currency effects, the product and market mix, with higher sales in emerging markets and in capital goods with lower margins. Lower sales of disposables that include service were primarily due to Infection Control and IWS, which both reported a strong performance in the year-earlier period.
• Operating profit was negatively affected by the lower gross margin and higher operating expenses, primarily related to increased sales resources in the US, higher logistics costs and continuing costs following the spin-off of Arjo.
• Currency effects impacted sales by SEK +23 M, gross profit by SEK -14 M and EBITA by SEK -32 M.

Total	2,033	1,869	7.6	3,608	3,394	6.9	8,347
Net sales specified by capital goods and consumables, SEK M	Apr-Jun 2018	Apr-Jun 2017	Org Δ, %	Jan-Jun 2018	Jan-Jun 2017	Org Δ, %	Jan-Dec 2017
Capital goods	1,214	1,020	18.0	2,053	1,811	14.1	5,117
Consumables	819	849	-4.9	1,555	1,583	-1.2	3,230
Total	2,033	1,869	7.6	3,608	3,394	6.9	8,347

Underlying earnings trend1)

SEK M Net sales	Apr-Jun 2018 2,033	Apr-Jun 2017 1,869	Jan-Jun 2018 3,608	Jan-Jun 2017 3,394	Jan-Dec 2017 8,347
Adjusted gross profit	792	770	1,441	1,440	3,459
Margin, %	39.0	41.2	39.9	42.4	41.4
Adjusted EBITDA	63	157	-3	136	878
Margin, %	3.1	8.4	-0.1	4.0	10.5
Depreciation, amortization and write
downs of tangible and intangible assets	-102	-108	-201	-214	-433
Adjusted EBITA	-39	49	-204	-78	445
Margin, %	-1.9	2.6	-5.7	-2.3	5.3

1) See Note 3 for depreciation, amortization and write-downs, Note 5 for other items affecting comparability and Note 7 (alternative performance measures).

Key events in the business area

• Launch of the Maquet Yuno II operating table for optimum results in open or minimally invasive interventions. The table can be configured for any discipline, maximizing the functionality and utilization of the operating room.
• Launch of the new Maquet Meera ST operating table, offering the same advantages as Maquet Meera, in addition to functionality for gynecological and urological procedures. Maquet Meera ST offers high functionality for clinics that perform few or no such operations.
• Launch of a carbon fiber table component for the Maquet Otesus and Maquet Yuno II for procedures requiring unrestricted transparency when using a scanner, for example, pelvic, cardiovascular, orthopaedic, traumatology and spinal surgery.

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 structured 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 claims relating 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 the protection Getinge receives through its insurance policies would be limited for reasons such as amount limits and requirements to pay deductibles.

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. 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

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.

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, July 17, 2018

Carl Bennet Chairman	Johan Bygge	Cecilia Daun Wennborg
Barbro Fridén	Dan Frohm	Sofia Hasselberg
Peter Jörmalm	Rickard Karlsson	Johan Malmquist
Mattias Perjos President & CEO	Malin Persson	Johan Stern Vice Chairman

This interim report is unaudited.

Consolidated financial statements

Consolidated income statement

SEK M	Note	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Net sales	2	5,731	5,369	10,599	10,180	22,495
Cost of goods sold	3	-3,077	-2,725	-5,541	-5,108	-11,783
Gross profit	2	2,654	2,644	5,058	5,072	10,712
Selling expenses	3	-1,279	-1,254	-2,527	-2,506	-4,980
Administrative expenses	3	-760	-665	-1,507	-1,401	-2,760
Research and development costs		-184	-156	-361	-285	-594
Acquisition expenses		-1	-2	-2	-3	-4
Restructuring costs		-12	-509	-12	-536	-759
Other operating income and expenses1)		-13	-16	-405	3	-122
Operating profit (EBIT)	2.3	405	42	244	344	1,493
Net financial items	2	-74	-158	-195	-301	-560
Profit/loss after financial items	2	331	-116	49	43	933
Taxes		-240	31	-259	-11	184
Net profit/loss for the period from continuing operations		91	-85	-210	32	1,117
Net profit for the period from discontinued operations2)	9	-	92	-	256	280
Net profit/loss for the period from continuing and discontinued
operations		91	7	-210	288	1,397
Attributable to:
Parent Company shareholders
Profit/loss from continuing operations		81	-90	-226	23	1,096
Profit from discontinued operations		-	92	-	256	280
Profit/loss from continuing and discontinued operations		81	2	-226	279	1,376
Non-controlling interests
Profit/loss from continuing operations		10	5	16	9	21
Profit from discontinued operations		-	-	-	-	-
Profit from continuing and discontinued operations		10	5	16	9	21
Earnings per share, SEK3		0.30	0.01	-0.83	1.15	5.49
Of which, continuing operations, SEK		0.30	-0.37	-0.83	0.10	4.37
Of which, discontinued operations, SEK		-	0.38	-	1.05	1.12
Weighted average number of shares for calculation of earnings per share (000s)4)
		272,370	241,780	272,370	241,780	250,720

1) Of which SEK -350 M is related to ongoing investigations in Brazil (2018)

2) 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 IFRS 5 3) Before and after dilution

4) Adjusted for bonus issue effect of the rights issue

Consolidated statement of comprehensive income

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
SEK M	2018	2017	2018	2017	2017
Net profit/loss for the period from continuing and discontinued operations	91	7	-210	288	1,397
Other comprehensive income
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined-benefit pension plans	0	122	0	122	179
Tax attributable to items that cannot be restated in profit	0	-47	0	-47	-159
Items that can later be restated in profit for the period
Translation differences and hedging of net investments	964	-676	1,431	-777	-762
Cash flow hedges	-192	201	-156	335	561
Reversal of translation differences and hedges, discontinued operations	-	-	-	-	-127
Tax attributable to items that can be restated in profit	153	-193	207	-300	-448
Other comprehensive income for the period, net after tax	925	-593	1,482	-667	-756
Total comprehensive income for the period	1,016	-586	1,272	-379	641
Comprehensive income attributable to:
Parent Company shareholders	1,001	-594	1,231	-391	609
Non-controlling interests	15	8	41	12	32

Consolidated balance sheet

		June 30	June 30	December 31
SEK M	Note	2018	2017	2017
Assets
Intangible assets		24,522	30,463	23,045
Tangible assets		3,102	4,155	2,911
Financial assets		1,847	1,391	1,586
Inventories		5,689	6,188	4,879
Accounts receivable		5,100	6,694	6,067
Other current receivables		2,265	2,546	2,088
Cash and cash equivalents	6	939	1,400	1,526
Total assets		43,464	52,837	42,102
Equity and liabilities
Equity		20,668	20,060	19,806
Provisions for pensions, interest-bearing	6	3,222	3,169	3,081
Other interest-bearing liabilities	6	11,562	20,897	11,237
Other provisions		2,344	2,157	2,202
Accounts payable		1,581	1,839	2,025
Other non-interest-bearing liabilities		4,087	4,715	3,751
Total equity and liabilities		43,464	52,837	42,102

Changes in equity for the Group

SEK M	Share capital	Other capital provided	Reserves1)	Retained earnings	Total	Non controlling interests	Total equity
Opening balance at January 1, 2017	119	5,960	955	13,474	20,508	408	20,916
Total comprehensive income for the period	-	-	-787	1,396	609	32	641
Share-based remuneration	-	-	-	-4	-4	-	-4
Dividend	-	-	-	-477	-477	- 18	-495
Rights Issue2)	17	4,264	-	-	4,281	-	4,281
Distribution of Arjo3)	-	-3,435	-	-2,098	-5,533	-	-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	-	-	1,457	-226	1,231	41	1,272
Share-based remuneration	-	-	-	-1	-1	-	-1
Dividend	-	-	-	-409	-409	-	-409
Closing balance at June 30, 2018	136	6,789	1,625	11,655	20,205	463	20,688

1) Reserves pertain to cash flow hedges, hedges of net investments and translation differences.

2) After deductions for transaction costs and taking tax effects into consideration.

3) Including transaction costs and taxes.

Consolidated cash flow statement

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Operating activities
Operating profit (EBIT) for continuing operations	405	42	244	344	1,493
Operating profit (EBIT) for discontinued operations	-	120	-	358	294
Add-back of depreciation, amortization and write-downs	415	605	816	1,271	2,609
Other non-cash items	7	11	362	15	51
Add-back of restructuring costs1)	12	523	12	551	887
Paid restructuring costs	-64	-142	-109	-257	-539
Financial items	-58	-153	-168	-310	-663
Taxes paid	-277	-81	-445	-253	-479
Cash flow before changes in working capital	440	925	712	1,719	3,653
Changes in working capital
Inventories	-60	-492	-604	-1,050	-910
Current receivables	138	-152	1,293	821	-653
Current liabilities	-117	-58	-702	-399	673
Cash flow from operating activities	401	223	699	1,091	2,763
Investing activities
Acquired operations	-4	-41	-4	-81	-81
Investments in intangible assets and tangible assets	-377	-397	-677	-781	-1,663
Divestment of non-current assets	23	7	24	25	30
Cash flow from investing activities	-358	-431	-657	-837	-1,714
Financing activities
Change in interest-bearing liabilities	253	-224	-275	-46	-4,276
Change in interest-bearing receivables	-1	39	9	15	-56
Distribution of Arjo	-	-	-	-	-623
Dividend paid	-409	-477	-409	-477	-495
Rights issue	-	-	-	-	4,281
Cash flow from financing activities	-157	-662	-675	-508	-1,169
Cash flow for the period	-114	-870	-633	-254	- 120
Cash and cash equivalents at the beginning of the period	1,037	2,334	1,526	1,680	1,680
Translation differences	16	-64	46	-26	-34
Cash and cash equivalents at the end of the period	939	1,400	939	1,400	1,526

1) Excluding write-downs on non-current assets

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. The Group is currently assessing the full impact of implementing the standard IFRS 16 Leases that comes into force on January 1, 2019. At this stage, the Group does not intend to apply the standard earlier than the effective date. For more information about these 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 fir 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 Arjo 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 included in the balance sheet as per June 30, 2017.

Note 2 Segment overview

	Apr-Jun	Apr-Jun	Jan-Jun	Jun-Jun	Jan-Dec
Net sales, SEK M	2018	2017	2018	2017	2017
Acute Care Therapies	3,148	3,094	5,999	5,919	12,201
Life Science	550	406	992	867	1,947
Surgical Workflows	2,033	1,869	3,608	3,394	8,347
Total	5,731	5,369	10,599	10,180	22,495
	Apr-Jun	Apr-Jun	Jan-Jun	Jun-Jun	Jan-Dec
Gross profit, SEK M	2018	2017	2018	2017	2017
Acute Care Therapies	1,732	1,766	3,365	3,401	6,787
Life Science	186	164	362	340	749
Surgical Workflows	736	714	1,331	1,331	3,176
Total	2,654	2,644	5,058	5,072	10,712
	Apr-Jun	Apr-Jun	Jan-Jun	Jun-Jun	Jan-Dec
Operating profit (EBIT), SEK M	2018	2017	2018	2017	2017
Acute Care Therapies	477	12	632	417	1,131
Life Science	51	64	107	166	364
Surgical Workflows	-52	16	-363	-140	211
Group functions and other (incl.
eliminations)1)	-71	-50	-132	-99	-213
Operating profit (EBIT)	405	42	244	344	1,493
Net financial items	-74	-158	-195	-301	-560
Profit/loss after financial items	331	-116	49	43	933

1) Group functions and other refer mainly to central functions such as finance, communication, HR and other items, such as eliminations.

Note 3 Depreciation, amortization and write-downs

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Intangible assets in acquired companies	-120	-149	-231	-304	-586
Intangible assets	-180	-188	-361	-370	-943
Tangible assets	-115	-108	-224	-217	-437
Total	-415	-445	-816	-891	-1,966
of which write-downs	-	-1	-	-2	-203
SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Cost of goods sold	-190	-184	-374	-366	-891
Selling expenses	-138	-170	-267	-342	-661
Administrative expenses	-80	-83	-161	-168	-333
Research and development costs	-7	-7	-14	-13	-26
Restructuring costs	-	-1	-	-2	-55
Total	-415	-445	-816	-891	-1,966
of which write-downs	-	-1	-	-2	-203

Note 4 Quarterly results

	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep
SEK M Net sales	2018 5,731	2018 4,868	2017 7,371	2017 4,944	2017 5,369	2017 4,811	2016 7,434	2016 5,087
Cost of goods sold	-3,077	-2,464	-4,179	-2,496	-2,725	-2,383	-4,036	-2,604
Gross profit	2,654	2,404	3,192	2,448	2,644	2,428	3,398	2,483
Operating expenses	-2,249	-2,565	-2,347	-2,144	-2,602	-2,126	-2,090	-2,645
Operating profit/loss (EBIT)	405	-161	845	304	42	302	1,308	-162
Net financial items	-74	-121	-127	-132	-158	-143	-127	-132
Profit/loss after financial items	331	-282	718	172	-116	159	1,181	-294
Taxes	-240	-19	242	-47	31	-42	-309	78
Net profit/loss for the period from continuing operations	91	-301	960	125	-85	117	872	-216

Note 5 Adjustment items

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
Adjusted EBITA, SEK M	2018	2017	2018	2017	2017
Acute Care Therapies	596	638	1,066	1,195	2,500
Life Science	52	64	109	168	369
Surgical Workflows	-39	49	-204	-78	445
Group functions and other (incl. eliminations)	-71	-49	-132	-98	-206
Total, Group	538	702	839	1,187	3,108
Adjustments of EBITA, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Specification of items affecting comparability
Acquisition and restructuring costs, Acute Care Therapies	-8	-492	-9	-502	-607
Acquisition and restructuring costs, Life Science	-	-	-	-2	-2
Acquisition and restructuring costs, Surgical Workflows	-5	-18	-5	-34	-147
Write-down of inventories, Acute Care Therapies1)	-	-	-	-	-17
Write-down of R&D, Acute Care Therapies1)	-	-	-	-	-122
Write-down of inventories, Surgical Workflows1)	-	-	-	-	-32
Write-down of R&D, Surgical Workflows1)	-	-	-	-	-26
Provision for ongoing investigation in Brazil, Acute Care Therapies2)	-	-	-210	-	-69
Provision for ongoing investigation in Brazil, Surgical Workflows2)	-	-	-140	-	-
Group functions and other (incl. eliminations)	-	-1	-	-1	-7
Total, Group	-13	-511	-364	-539	-1,029
Items affecting comparability per segment
Acute Care Therapies	-8	-492	-219	-502	-815
Life Science	-	-	-	-2	-2
Surgical Workflows	-5	-18	-145	-34	-205
Group functions and other (incl. eliminations)	-	-1	-	-1	-7
Total, Group	-13	-511	-364	-539	-1,029

1) Reported in Cost of goods sold

2) Reported in Other operating income and operating expenses

EBITA, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Acute Care Therapies	588	146	847	693	1,685
Life Science	52	64	109	166	367
Surgical Workflows	-44	31	-349	-112	240
Group functions and other (incl. eliminations)	-71	-50	-132	-99	-213
Total, Group	525	191	475	648	2,079

Adjustment of tax, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Amortization and write-down of acquired intangible assets	120	149	231	304	586
Items affecting comparability	13	511	364	539	1,029
Adjustment items, total	133	660	595	843	1,615
Tax effect on adjustment items1)	-36	-178	-66	-228	-436
Tax items affecting comparability2)	152	-	152	-	-302
Total, Group	116	-178	86	-228	-738

1) Standard tax of 27% on taxable deductible adjustment items

2) 2018: Provision of SEK 64 M for self correction of tax return related to ongoing investigations in Brazil and SEK 88 in tax effect due to the tax rate change in Sweden. The effects in 2017 refer to the US Tax Reform.

Note 6 Consolidated net interest-bearing debt

	June 30	June 30	December 31
SEK M	2018	2017	2017
Other interest-bearing liabilities	11,562	20,897	11,237
Provisions for pensions, interest-bearing	3,222	3,169	3,081
Interest-bearing liabilities	14,784	24,066	14,318
Less cash and cash equivalents	-939	-1,400	-1,526
Net interest-bearing debt	13,845	22,666	12,792

Note 7 Key figures for the Group

Financial and operative key figures	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Key figures based on Getinge's financial targets
Organic growth in net sales, %	6.0	-0.5	5.7	1.0	1.3
Earnings per share 1), SEK	0.30	-0.37	-0.83	0.10	4.37
Other operative and financial key figures
Organic growth in order intake, %	10.2	-6.7	6.7	-2.6	2.5
Gross margin, %	46.3	49.2	47.7	49.8	47.6
Selling expenses, % of net sales	22.3	23.4	23.8	24.6	22.1
Administrative expenses, % of net sales	13.3	12.4	14.2	13.8	12.3
Research and development costs, % of net sales	6.0	5.5	6.3	5.6	5.0
Operating margin, %	7.1	0.8	2.3	3.4	6.6
EBITDA, SEK M	820	487	1,060	1,235	3,459
Number of shares2), thousands	272,370	241,780	272,370	241,780	250,720
Number of shares at the end of the period2), thousands	272,370	241,780	272,370	241,780	272,370
Interest-coverage ratio, multiple			8.9	7.4	8.6
Net debt/equity ratio3), multiple			0.67	N/A	0.65
Net debt/Rolling 12m adjusted EBITDA3), multiple			3.5	N/A	3.0
Return on equity3), %			4.3	N/A	6.6
Equity/assets ratio, %			47.6	38.0	47.0
Equity per share3), SEK			75.88	N/A	72.72
Number of employees			10,748	10,617	10,684

1) Before and after dilution

2) Adjusted for bonus issue effect of the rights issue 3) Not applicable due to the distribution of Arjo in December 2017

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.

Adjusted gross profit, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Gross profit	2,654	2,644	5,058	5,072	10,712
Add-back of: Depreciation, amortization and write-downs of intangible and tangible assets	190	184	374	366	891
Other items affecting comparability	-	-	-	-	197
Adjustment for write-downs included in other
items affecting comparability	-	-	-	-	-148
Adjusted gross profit	2,844	2,828	5,432	5,438	11,652

Adjusted EBITDA, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Operating profit (EBIT)	405	42	244	344	1,493
Add-back of:
Depreciation, amortization and write-downs of
intangible and tangible assets	295	296	585	587	1,380
Amortization and write-down of acquired
intangible assets	120	149	231	304	586
Other items affecting comparability	-	-	350	-	266
Acquisition and restructuring costs	13	511	14	539	763
Adjustment for write-downs included in other items affecting comparability and
restructuring costs	-	-1	-	-2	-203
Adjusted EBITDA	833	997	1,424	1,772	4,285

Adjusted EBITA, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Operating profit (EBIT)	405	42	244	344	1,493
Add-back of:
Amortization and write-down of acquired intangible assets	120	149	231	304	586
Other items affecting comparability	-	-	350	-	266
Acquisition and restructuring costs	13	511	14	539	763
Adjusted EBITA	538	702	839	1,187	3,108

Adjusted EBIT, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Operating profit (EBIT)	405	42	244	344	1,493
Add-back of:
Other items affecting comparability	-	-	350	-	266
Acquisition and restructuring costs	13	511	14	539	763
Adjusted EBIT	418	553	608	883	2,522

Adjusted net profit/loss for the period from continuing operations, SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Net profit for the period from continuing operations	91	-85	-210	32	1,117
Add-back of:
Amortization and write-down of acquired intangible assets	120	149	231	304	586
Other items affecting comparability	-	-	350	-	266
Acquisition and restructuring costs	13	511	14	539	763
Tax items affecting comparability	152	-	152	-	-302
Tax on add-back items	-36	-178	-66	-228	-436
Adjusted net profit for the period from	340	397	471	647	1,994
continuing operations

Note 8 Acquisitions

No acquisitions took place the second quarter.

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	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Net sales	-	1,894	-	3,825	6,929
Cost of goods sold	-	-1,029	-	-2,043	-3,863
Gross profit	-	865	-	1,782	3,066
Selling expenses	-	-395	-	-778	-1,425
Administrative expenses	-	-303	-	-490	-992
Research and development costs	-	-29	-	-64	-118
Restructuring costs	-	-15	-	-84	-250
Other operating income and expenses	-	-3	-	-8	13
Operating profit (EBIT)	-	120	-	358	294
Net financial items	-	5	-	-9	-84
Profit after financial items	-	125	-	349	210
Taxes	-	-33	-	-93	-57
Net profit for the period from the operations	-	92	-	256	153
Profit from translation differences and hedges	-	-	-	-	127
Net profit for the period	-	92	-	256	280

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
Cash flow from discontinued operations, SEK M	2018	2017	2018	2017	2017
Cash flow from operating activities	-	122	-	275	269
Cash flow from investing activities	-	-102	-	-192	-320
Cash flow from financing activities	-	-11	-	-9	4
Cash flow for the period	-	9	-	74	-47

Parent Company financial statements

Parent Company's income statement

SEK M	Apr-Jun 2018	Apr-Jun 2017	Jan-Jun 2018	Jan-Jun 2017	Jan-Dec 2017
Administrative expenses	-117	-71	-236	-195	-251
Other operating expenses	-301	-	-301	-	-
Operating result	-418	-71	-537	-195	-251
Result from participations in Group companies1)	8,217	1,959	8,217	1,959	2,859
Interest income and other similar income	205	799	205	1,158	1,614
Interest expenses and other similar expenses	-865	-140	-1,361	-282	-574
Profit after financial items2)	7,139	2,547	6,524	2,640	3,648
Appropriations	-	-	-	-	-420
Taxes	140	-25	276	-47	-99
Net profit for the period3)	7,279	2,522	6,800	2,593	3,129

1) Internal restructuring took place in the quarter, resulting in a liquidation result of SEK 8,217 M in the Parent Company, which is recognized under Result from participations in Group companies.

2) Interest income and other similar income and interest expenses and other similar expenses include exchange-rate gains and losses attributable to the translation of receivables and liabilities in foreign currencies measured

3) Comprehensive income for the period corresponds to net profit for the period

Parent Company's balance sheet

	June 30	June 30	December 31
SEK M Assets	2018	2017	2017
Intangible assets	85	98	86
Tangible assets	10	5	6
Participations in Group companies	33,692	27,364	25,455
Deferred tax assets	462	183	189
Long-term receivables	57	-	53
Receivables from Group companies	30	5,255	953
Current receivables	239	196	191
Total assets	34,575	33,101	26,933
Equity and liabilities
Equity	18,975	11,676	12,584
Long-term liabilities	5,693	11,098	4,257
Long-term liabilities to Group companies	717	-	659
Current liabilities to Group companies	4,551	527	2,990
Current liabilities	4,639	9,800	6,443
Total equity and liabilities	34,575	33,101	26,933

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 year.

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 July 17, 2018 at 10:00-11:00 a.m. CEST. Please see dial in details below to join the conference:

SE: +46 8 56642697

UK: +44 2030089807 US: +1 8558315947

A presentation will be held during the telephone conference. To access the presentation, please use this link: https://tv.streamfabriken.com/getinge-q2-2018

Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reportspresentations/2018/

A recording of the teleconference will be available for 3 days via the following link: https://tv.streamfabriken.com/getinge-q2-2018

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 for the remainder of 2018 and 2019:

October 18, 2018	Interim report January–September
November 21, 2018	Capital Markets Day
January 30, 2019	Year-End Report 2018
March 2019	2018 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, at 8:00 a.m. CEST on July 17, 2018.

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