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Getinge

Quarterly Report Apr 26, 2018

2917_10-q_2018-04-26_1c13d346-f9b8-49f4-ab5a-905f2c70f1d2.pdf

Quarterly Report

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Interim report

January – March 2018

Comments from Mattias Perjos, President & CEO High organic growth – increased operating expenses adversely impacted earnings

"Organic sales increased by more than 5% during the quarter, which is gratifying. We are growing on a broad front, with our two largest business areas reporting more than 6% organic sales growth. Our performance was particularly favorable in Americas and APAC, especially in emerging markets. Operating profit was adversely impacted by higher costs in R&D, quality and sales, as well as currency effects and continuing costs from the distribution of Arjo. The work on reducing our total costs to a lower level in relation to sales, while maintaining the positive trend in sales and deliveries, will intensify."

January – March 2018 in brief

  • Order intake increased organically by 3.1%
  • Net sales increased organically by 5.4%
  • Adjusted EBITA amounted to SEK 301 M (485)
  • Adjusted earnings per share amounted to SEK 0.46 (1.02)
  • Operating profit (EBIT) amounted to SEK -161 M (302), currency effects had a negative impact of SEK -115 M on EBIT
  • Provision of SEK 350 M for ongoing investigations in Brazil
  • Paul Marcun appointed President of the Surgical Workflows business area and will take office not later than July 1, 2018
  • 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 slightly positive in 2018
  • Currency transaction effects are expected to have a negative impact of approximately SEK -150 M (-100) on the Group's 2018 EBIT

Summary of financial performance1)

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Order intake 5,328 5,379 23,228
Organic change, % 3.1 1.9 2.5
Net sales 4,868 4,811 22,495
Organic change, % 5.4 2.6 1.3
Adjusted gross profit 2,588 2,610 11,652
Margin, % 53.2 54.3 51.8
Adjusted EBITDA 591 775 4,285
Margin, % 12.1 16.1 19.0
Adjusted EBITA 301 485 3,108
Margin, % 6.2 10.1 13.8
Adjusted EBIT 190 330 2,522
Margin, % 3.9 6.9 11.2
Operating profit/loss (EBIT) -161 302 1,493
Margin, % -3.3 6.3 6.6
Profit/loss before tax -282 159 933
Net profit/loss for the period -301 117 1,117
Adjusted net profit for the period 131 250 1,994
Margin, % 2.7 5.2 8.9
Adjusted earnings per share, SEK 0.46 1.02 7.87
Earnings per share, SEK -1.13 0.47 4.37
Cash flow from operating activities2) 298 868 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.

Unless otherwise specified all results in this report pertain to the continuing operations, excluding Arjo, which was distributed to shareholders in December 2017.

Group performance

Order intake

January – March 2018

Order intake
business areas, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Acute Care Therapies 2,907 2,975 2.9 12,383
Life Science 555 552 2.4 2,011
Surgical Workflows 1,866 1,852 3.6 8,834
Total 5,328 5,379 3.1 23,228
Order intake
regions, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Americas 2,172 2,276 4.1 9,149
APAC 1,022 928 15.1 4,744
EMEA 2,134 2,175 -3.1 9,335
Total 5,328 5,379 3.1 23,228

Net sales

January – March 2018

Net sales
business areas, SEK M
Acute Care Therapies
Life Science
Jan-Mar
2018
2,851
442
Jan-Mar
2017
2,825
461
Org Δ, %
6.2
-2.5
Jan-Dec
2017
12,201
1,947
Surgical Workflows 1,575 1,525 6.2 8,347
Total 4,868 4,811 5.4 22,495
Net sales Jan-Mar Jan-Mar Jan-Dec
regions, SEK M
Americas
2018
2,140
2017
2,136
Org Δ, %
9.4
2017
9,039
APAC 868 849 7.1 4,684
EMEA 1,860 1,826 -0.2 8,772
Total 4,868 4,811 5.4 22,495
Net sales specified by capital goods and
consumables, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Capital goods 1,727 1,640 8.7 9,589
Consumables 3,141 3,171 3.6 12,906
Total 4,868 4,811 5.4 22,495

Net sales – bridge between Jan-Mar 2017 and Jan-Mar 2018

  • Organic growth in all business areas
  • Particularly high growth in APAC in Acute Care Therapies and Surgical Workflows
  • Healthy order intake in Surgical Workflows and Life Science in Americas
  • Order intake for EMEA declined compared with the preceding year's high growth mainly in Surgical Workflows
  • High growth in the two largest business areas, Surgical Workflows and Acute Care Therapies
  • Strong sales trend in emerging markets in Americas and APAC
  • Organic net sales were unchanged in EMEA
  • Sales of capital goods are increasing as a percentage of total sales, which in the short term has a negative impact on gross profit but in the long term is expected to boost sales of consumables
  • Net sales increased by 1.2%
  • Exchange rates had a negative impact of -4.2% on net sales compared with Q1 2017
  • Volume, mix and other items had a positive impact on sales of +5.4% compared with Q1 2017

Underlying earnings trend

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Net sales 4,868 4,811 22,495
Adjusted gross profit 2,588 2,610 11,652
Margin, % 53.2 54.3 51.8
Adjusted operating expenses -1,997 -1,835 -7,367
Adjusted EBITDA 591 775 4,285
Margin, % 12.1 16.1 19.0
Depreciation, amortization and write-downs of tangible and
intangible assets 1)
-290 -290 -1,177
Adjusted EBITA 301 485 3,108
Margin, % 6.2 10.1 13.8
A
Amortization and write-downs of acquired
intangible assets 1) -111 -155 -586
Adjusted EBIT 190 330 2,522
Margin, % 3.9 6.9 11.2
B Acquisition and restructuring costs -1 -28 -763
C Other items affecting comparability2) -350 - -266
Operating profit/loss (EBIT) -161 302 1,493
Net financial items -121 -143 -560
Profit/loss before tax -282 159 933
Adjusted profit before tax
(adjusted for A, B and C)
180 342 2,548
Margin, % 3.7 7.1 11.3
Taxes -19 -42 184
D Adjustment of tax 2) -30 -50 -738
Adjusted net profit for the period
(adjusted for A, B, C and D)
131 250 1,994
Margin, % 2.7 5.2 8.9
Of which attributable to the parent company's shareholders 125 246 1,973
Number of shares, thousands 272,370 241,780 250,720
Adjusted earnings per share, SEK
(adjusted for A, B, C and D)
0.46 1.02 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)

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Acute Care Therapies 470 557 2,500
Margin, % 16.5 19.7 20.5
Life Science 57 104 369
Margin, % 12.9 22.6 19.0
Surgical Workflows -165 -127 445
Margin, % -10.5 -8.3 5.3
Group functions and other (incl. eliminations) -61 -49 -206
Total 301 485 3,108
Margin, % 6.2 10.1 13.8

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

Adjusted EBITA – bridge between Jan-Mar 2017 and Jan-Mar 2018

  • Currency effects had a negative impact of SEK 178 M on gross profit and SEK 125 M on adjusted EBITA
  • Adjusted for currency effects, the gross profit margin was in line with the margin in Q1 2017
  • Adjusted operating expenses rose 8.8%. Besides the negative impact from currency effects, the increase was primarily related to higher expenses in R&D, sales and quality and continuing costs following the distribution of Arjo
  • Other items affecting comparability include a provision of SEK 350 M for the ongoing investigations in Brazil

  • Lower adjusted EBITA in all business areas

  • In Acute Care Therapies, the decline was mainly due to currency effects and higher R&D and quality costs
  • In Surgical Workflows, the decline was mainly due to a lower gross margin and higher costs in the sales organization and currency effects
  • In Life Science, the decline was mainly attributable to higher selling and administrative expenses and currency effects

Adjusted operating expenses

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

SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Selling expenses -1,119 -1,080 -4,319
Administrative expenses -666 -652 -2,427
Research and development costs -170 -122 -568
Other operating income and expenses -42 19 -53
Total -1,997 -1,835 -7,367

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

Adjusted EBITA– bridge between Jan-Mar 2017 and Jan-Mar 2018

Currency impact

SEK M Jan-Mar
2018
Net sales -200
Gross profit -178
EBITDA -125
EBITA -125
Operating profit (EBIT) -115

Cash flow and financial position1)

SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Cash flow before changes in working capital 272 794 3,653
Changes in working capital 26 74 -890
Net investments in non-current assets -299 -366 -1,633
Cash flow after Net investments -1 502 1,130
Net interest-bearing debt at end of the period 13,079 22,743 12,792
In relation to adjusted EBITDA2) R12M, multiple 3.2 N/A 3.0

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

• Adjusted operating expenses increased with SEK 162 M, primarily due to higher costs in R&D, sales and administration (where quality investments accounted for a significant share of the increase) and currency effects

  • Net sales were negatively impacted by translation effects of SEK -200 M
  • EBIT was negatively impacted by translation effects of SEK -36 M and transaction effects of SEK -79 M
  • Cash flow was adversely affected by lower profitability
  • Working capital decreased, mainly as a result of lower levels of accounts receivables
  • No payments have been made related to the SEK 350 M provision for ongoing investigations in Brazil

Research and development

SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
R&D costs, gross -320 -275 -1,123
In relation to net sales, % 6.6 5.7 5.0
Capitalized development costs 143 146 529
In relation to net sales, % 2.9 3.0 2.4
Research and development costs, net -177 -129 -594
Amortization and write-downs of capitalized R&D -123 -119 -675
Of which write-downs - - -193
  • Gross expenses for R&D increased by 16.4%
  • Capitalized development costs and amortization and writedowns were in line with the same period in 2017
  • Improvements continue to take place in Hechingen in accordance with the revised plan from 2017
  • The unutilized provision totaled SEK 536 M at the end of the quarter.

Update regarding Consent Decree with the FDA

March 31 March 31 December 31
SEK M 2018 2017 2017
Provision at beginning of period 556 371 371
Used amount -44 -65 -296
Provisions - - 488
Translation differences 24 -4 -7
Provision at close of period 536 302 556
  • The Consent Decree with the FDA was signed in February 2015 and originally encompassed a total of four units located in the US and Germany.
  • Improvement plans for the necessary corrections have been prepared for each unit.
  • 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 of the first quarter of 2018.

Other key events during the quarter

Provision of SEK 350 M for the ongoing investigations in Brazil

During the quarter, Getinge made a provision of SEK 350 M related to the investigations of alleged manipulation in bidding proceedings 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 provision of SEK 350 M impacts operating profit the first quarter of 2018.

In connection with the Year-End Report 2017, Getinge made initial provisions of SEK 69 M for costs related to the Brazilian investigations, which means that in total, SEK 419 M has been allocated to the ongoing investigations.

Negotiations will continue with relevant authorities and are expected to be finalized during 2018. It cannot be ruled out that settlements with relevant authorities may have additional significant effects on Getinge's earnings and financial position.

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

Order intake
regions, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Americas 1,425 1,574 -0.8 6,234
APAC 507 457 17.1 2,191
EMEA 975 944 2.4 3,958
Total 2,907 2,975 2.9 12,383
• Slightly negative development in
the organic order intake in

• Particularly robust performance in APAC with growth reported in all product categories

  • Growth in all regions
  • APAC reports a highly favorable performance in Cardiopulmonary and Cardiac Systems

  • Lower gross margin due to currency effects, partly offset by a favorable product and market mix

  • Higher expenses primarily in R&D and Quality contributed negatively to underlying operating profit
Net sales Jan-Mar Jan-Mar Jan-Dec
regions, SEK M 2018 2017 Org Δ, % 2017
Americas 1,472 1,539 4.8 6,263
APAC 496 457 14.3 2,227
EMEA 883 829 4.2 3,711
Total 2,851 2,825 6.2 12,201
Net sales specified by capital goods and Jan-Mar Jan-Mar Jan-Dec
consumables, SEK M 2018 2017 Org Δ, % 2017
Capital goods 630 595 10.7 3,289

Total 2,851 2,825 6.2 12,201

Underlying earnings trend1)

SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Net sales 2,851 2,825 12,201
Adjusted gross profit 1,753 1,753 7,403
Margin, % 61.5 62.1 60.7
Adjusted EBITDA 642 724 3,174
Margin, % 22.5 25.6 26.0
Depreciation, amortization and write
downs of tangible and intangible assets -172 -167 -674
Adjusted EBITA 470 557 2,500
Margin, % 16.5 19.7 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 new higher oxygenation function for the successful Servo-N and Servo-U ventilators was launched at the International Symposium on Intensive Care and Emergency Medicine (ISICEM) in Brussels
  • CE marking was secured for the Flow-C anesthesia device, a high-quality, compact and costefficient anesthesia device for the large mid-segment in the market
  • Sales of balloon expandable covered stents were negatively impacted by the competitive situation in the US
  • Extensive customer training efforts related to open-heart surgery in key markets

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

Order intake regions, SEK M Jan-Mar 2018 Jan-Mar 2017 Org Δ, % Jan-Dec 2017 Americas 214 191 21.1 673 APAC 86 109 -18.7 335 EMEA 255 252 -2.6 1,003 Total 555 552 2.4 2,011

Net sales
regions, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Americas 172 188 -1.3 718
APAC 48 68 -28.2 328
EMEA 222 205 5.0 901
Total 442 461 -2.5 1,947
Net sales specified by capital goods and
consumables, SEK M
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Capital goods 258 254 2.8 1,183
Consumables 184 207 -8.8 764
Total 442 461 -2.5 1,947

Underlying earnings trend1)

SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Net sales 442 461 1,947
Adjusted gross profit 186 187 790
Margin, % 42.1 40.6 40.6
Adjusted EBITDA 75 120 435
Margin, % 17.0 26.0 22.3
Depreciation, amortization and write
downs of tangible and intangible assets -18 -16 -66
Adjusted EBITA 57 104 369
Margin, % 12.9 22.6 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).

Information on characteristics of the operations

A high share of the sales in Life Science comprise large and customized projects, meaning that the order intake and sales can be markedly affected by individual agreements and vary significantly between quarters.

• Varying growth in the regions

• Particularly high growth in Americas due to two large projects in North America

  • EMEA grew due to very high sales of isolators
  • Sales declined a total of SEK 12 M organically as a result of loss of projects in APAC

  • Higher gross margin due to a favorable product mix

  • Increased operating expenses primarily attributable to sales and administration
  • The comparison of operating profit year on year was also affected by a capital gain amounting to SEK 11 M reported in Other operating income and expenses in Q1 2017

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
Jan-Mar
2018
Jan-Mar
2017
Org Δ, % Jan-Dec
2017
Americas 533 511 13.0 2,242
APAC 429 362 22.9 2,218
EMEA 904 979 -8.5 4,374
Total 1,866 1,852 3.6 8,834

Jan-Mar 2018

Americas 496 409 31.6 2,058 APAC 324 324 4.4 2,129 EMEA 755 792 -6.2 4,160 Total 1,575 1,525 6.2 8,347

Jan-Mar

2017 Org Δ, %

Jan-Dec 2017

• Doubled order intake in Integrated Workflow Solutions

• Significant growth in Americas in all product categories

• Particularly high order intake in APAC and Americas, with growth in most product categories

  • Solid growth in all product categories
  • Negative development in EMEA, which reported strong growth in Q1 2017 (both in order intake and net sales)
Net sales specified by capital goods and Jan-Mar Jan-Mar Jan-Dec
consumables, SEK M 2018 2017 Org Δ, % 2017
Capital goods 839 791 9.1 5,117
Consumables 736 734 3.0 3,230
Total 1,575 1,525 6.2 8,347

Underlying earnings trend1)

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Net sales 1,575 1,525 8,347
Adjusted gross profit 649 670 3,459
Margin, % 41.2 43.9 41.4
Adjusted EBITDA -66 -21 878
Margin, % -4.2 -1.4 10.5
Depreciation, amortization and write
downs of tangible and intangible assets -99 -106 -433
Adjusted EBITA -165 -127 445
Margin, % -10.5 -8.3 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

  • FDA approval and launch of new and high-quality sterilizer for the North American market, GSS67N. This new sterilizer offers improved product capacity due to shorter processing times and helps reduce environmental impact
  • Launch of new Otesus table top for operating tables with an ergonomic design and control function that enhances efficiency and safety
  • Launch of new version of INSIGHT, for more efficient and secure work flows and better overview of the operating process at emergency care hospitals. A new version of Getinge IMS (Instrument Management System) was also launched, offering complete traceability for sterilized instruments

• The gross margin was negatively impacted by currency effects, product and market mix

• Higher operating expenses, mainly related to R&D and sales had a negative impact on operating profit

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, 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 analysis 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 in the period other than transactions with subsidiaries.

Forward-looking information

This report contains forward-looking information based on the current expectations of the Getinge Executive Team. 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.

Getinge, April 26, 2018

Carl Bennet
Chairman
Johan Bygge Cecilia Daun Wennborg
Barbro Fridén Dan Frohm Sofia Hasselberg
Rickard Karlsson Åke Larsson 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 Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Net sales 2 4,868 4,811 22,495
Cost of goods sold 3 -2,464 -2,383 -11,783
Gross profit 2 2,404 2,428 10,712
Selling expenses 3 -1,248 -1,252 -4,980
Administrative expenses 3 -747 -736 -2,760
Research and development costs -177 -129 -594
Acquisition expenses -1 -1 -4
Restructuring costs - -27 -759
Other operating income and expenses1) -392 19 -122
Operating profit/loss (EBIT) 2.3 -161 302 1,493
Net financial items 2 -121 -143 -560
Profit/loss afterfinancial items 2 -282 159 933
Taxes -19 -42 184
Net profit/loss for the period from continuing operations -301 117 1,117
Net profit for the period from discontinued operations2) 9 - 164 280
Net profit/loss for the period from continuing and discontinued
operations -301 281 1,397
Attributable to:
Parent Company shareholders
Profit/loss from continuing operations -307 113 1,096
Profit from discontinued operations - 164 280
Profit/loss from continuing and discontinued operations -307 277 1,376
Non-controlling interests
Profit from continuing operations 6 4 21
Profit from discontinued operations - - -
Profit from continuing and discontinued operations 6 4 21
Earnings per share, SEK3) -1.13 1.15 5.49
Of which, continuing operations, SEK -1.13 0.47 4.37
Of which, discontinued operations, SEK - 0.68 1.12
Weighted average number of shares for calculation of earnings per
share (000s)4)
272,370 241,780 250,720

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

2) 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

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Net profit/loss for the period from continuing and discontinued
operations -301 281 1,397
Other comprehensive income
Items that cannot be restated in profit/loss for the period
Actuarial gains/losses pertaining to defined-benefit pension plans 0 0 179
Tax attributable to items that cannot be restated in profit 0 0 -159
Items that can later be restated in profit/loss for the period
Translation differences and hedging of net investments 467 -101 -762
Cash flow hedges 36 134 561
Reversal of translation differences and hedges, discontinued operations - - -127
Tax attributable to items that can be restated in profit 54 -107 -448
Other comprehensive income for the period, net after tax 557 -74 -756
Total comprehensive income for the period 256 207 641
Comprehensive income attributable to:
Parent Company shareholders 230 203 609
Non-controlling interests 26 4 32

Consolidated balance sheet

March 31 March 31 December 31
SEK M
Note
2018 2017 2017
Assets
Intangible assets 23,430 31,495 23,045
Tangible assets 2,989 4,203 2,911
Financial assets 1,820 1,426 1,586
Inventories 5,590 6,005 4,879
Accounts receivable 5,034 6,744 6,067
Other current receivables 2,153 2,619 2,088
Cash and cash equivalents
6
1,037 2,334 1,526
Total assets 42,053 54,826 42,102
Equity and liabilities
Equity 20,062 20,648 19,806
Provisions for pensions, interest-bearing
6
3,170 3,349 3,081
Other interest-bearing liabilities
6
10,946 21,728 11,237
Other provisions 2,568 1,835 2,202
Accounts payable 1,724 1,948 2,025
Other non-interest-bearing liabilities 3,583 5,318 3,751
Total equity and liabilities 42,053 54,826 42,102

Changes in equity for the Group

Other Non
capital Retained controlling Total
SEK M Share capital provided Reserves1) 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 - - -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 - - 537 -307 230 26 256
Share-based remuneration - - - 0 0 - 0
Closing balance at March 31, 2018 136 6,789 705 11,984 19,614 448 20,062

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

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Operating activities
Operating profit (EBIT) for continuing operations -161 302 1,493
Operating profit (EBIT) for discontinued operations - 238 294
Add-back of depreciation, amortization and write-downs 401 666 2,609
Other non-cash items 355 4 51
Add-back of restructuring costs1) - 28 887
Paid restructuring costs -45 -115 -539
Financial items -110 -157 -663
Taxes paid -168 -172 -479
Cash flow before changes in working capital 272 794 3,653
Changes in working capital
Inventories -544 -558 -910
Current receivables 1,155 973 -653
Current liabilities -585 -341 673
Cash flow from operating activities 298 868 2,763
Investing activities
Acquired operations - -40 -81
Investments in intangible assets and tangible assets -300 -384 -1,663
Divestment of non-current assets 1 18 30
Cash flow from investing activities -299 -406 -1,714
Financing activities
Change in interest-bearing liabilities -528 178 -4,276
Change in interest-bearing receivables 10 -24 -56
Distribution of Arjo - - -623
Dividend paid - - -495
Rights issue - - 4,281
Cash flow from financing activities -518 154 -1,169
Cash flow for the period -519 616 - 120
Cash and cash equivalents at the beginning of the period 1,526 1,680 1,680
Translation differences 30 38 -34
Cash and cash equivalents at the end of the period 1,037 2,334 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 prior year.

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 principles the Group has applied before regarding 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. 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 business area Surgical Workflows.

Reclassification of costs

Costs for 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 decrease in 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 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, which means that Arjo is included in the balance sheet as per 31 March, 2017.

Note 2 Segment overview

Jan-Mar Jan-Mar Jan-Dec
Net sales, SEK M 2018 2017 2017
Acute Care Therapies 2,851 2,825 12,201
Life Science 442 461 1,947
Surgical Workflows 1,575 1,525 8,347
Total 4,868 4,811 22,495
Jan-Mar Jan-Mar Jan-Dec
Gross profit, SEK M 2018 2017 2017
Acute Care Therapies 1,633 1,635 6,787
Life Science 176 176 749
Surgical Workflows 595 617 3,176
Total 2,404 2,428 10,712
Jan-Mar Jan-Mar Jan-Dec
Operating profit/loss (EBIT), SEK M 2018 2017 2017
Acute Care Therapies 155 405 1,131
Life Science 56 102 364
Surgical Workflows -311 -156 211
Group functions and other (incl.
eliminations)1)
-61 -49 -213
Operating profit/loss (EBIT) -161 302 1,493
Net financial items -121 -143 -560

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 Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Intangible assets in acquired companies -111 -155 -586
Intangible assets -181 -182 -943
Tangible assets -109 -109 -437
Total -401 -446 -1,966
of which write-downs - -1 -203

Note 4 Quarterly results

Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
SEK M 2018 2017 2017 2017 2017 2016 2016 2016
Net sales 4,868 7,371 4,944 5,369 4,811 7,434 5,087 5,133
Cost of goods sold -2,464 -4,179 -2,496 -2,725 -2,383 -4,036 -2,604 -2,740
Gross profit 2,404 3,192 2,448 2,644 2,428 3,398 2,483 2,393
Operating expenses -2,565 -2,347 -2,144 -2,602 -2,126 -2,090 -2,645 -2,069
Operating profit/loss (EBIT) -161 845 304 42 302 1,308 -162 324
Net financial items -121 -127 -132 -158 -143 -127 -132 -136
Profit/loss after financial items -282 718 172 -116 159 1,181 -294 188
Taxes -19 242 -47 31 -42 -309 78 -51
Net profit/loss for the period from
continuing operations -301 960 125 -85 117 872 -216 137

Note 5 Adjustment items

Q1 Q4 Q3 Q2 Q1 Jan-Dec
Adjusted EBITA, SEK M 2018 2017 2017 2017 2017 2017
Acute Care Therapies 470 847 458 638 557 2,500
Life Science
Surgical Workflows
57
-165
102
474
99
49
64
49
104
-127
369
445
Group functions and other (incl. eliminations) -61 -46 -62 -49 -49 -206
Total, Group 301 1,377 544 702 485 3,108
Q1 Q4 Q3 Q2 Q1 Jan-Dec
Adjustments of EBITA, SEK M 2018 2017 2017 2017 2017 2017
Specification of items affecting comparability
Acquisition and restructuring costs, Acute Care Therapies -1 -61 -44 -492 -10 -607
Acquisition and restructuring costs, Life Science - - - - -2 -2
Acquisition and restructuring costs, Surgical Workflows - -61 -52 -18 -16 -147
Write-down of inventories, Acute Care Therapies1) - -17 - - - -17
Write-down of R&D, Acute Care Therapies1) - -122 - - - -122
Write-down of inventories, Surgical Workflows1) - -32 - - - -32
Write-down of R&D, Surgical Workflows1) - -26 - - - -26
Provision for ongoing investigation in Brazil, Acute Care Therapies2) -210 -69 - - - -69
Provision for ongoing investigation in Brazil, Surgical Workflows2) -140 - - - - -
Group functions and other (incl. eliminations) - -3 -3 -1 - -7
Total, Group -351 -391 -99 -511 -28 -1,029
Items affecting comparability per segment
Acute Care Therapies -211 -269 -44 -492 -10 -815
Life Science - - - - -2 -2
Surgical Workflows -140 -119 -52 -18 -16 -205
Group functions and other (incl. eliminations) - -3 -3 -1 - -7
Total, Group -351 -391 -99 -511 -28 -1,029
1)
Reported in Cost of goods sold
2)
Reported in Other operating income and operating expenses
EBITA, SEK M Q1
2018
Q4
2017
Q3
2017
Q2
2017
Q1
2017
Jan-Dec
2017
Acute Care Therapies 259 578 414 146 547 1,685
Life Science 57 102 99 64 102 367
Surgical Workflows -305 355 -3 31 -143 240
Group functions and other (incl. eliminations) -61 -49 -65 -50 -49 -213
Total, Group -50 986 445 191 457 2,079
Q1 Q4 Q3 Q2 Q1 Jan-Dec
Adjustment of tax, SEK M 2018 2017 2017 2017 2017 2017
Acute Care Therapies 259 578 414 146 547 1,685
Life Science 57 102 99 64 102 367
Surgical Workflows -305 355 -3 31 -143 240
Group functions and other (incl. eliminations) -61 -49 -65 -50 -49 -213
Total, Group -50 986 445 191 457 2,079
Q1 Q4 Q3 Q2 Q1 Jan-Dec
Adjustment of tax, SEK M 2018 2017 2017 2017 2017 2017
Amortization and write-down of acquired intangible assets 111 141 141 149 155 586
Items affecting comparability 351 391 99 511 28 1,029
Adjustment items, total 462 532 240 660 183 1,615
Tax effect on adjustment items1) -30 -144 -64 -178 -50 -436
Tax items affecting comparability2) - -302 - - - -302
Total, Group -30 -446 -64 -178 -50 -738

1) Standard tax of 27% on taxable deductible adjustments

2) Refers to US Tax Reform

Note 6 Consolidated net interest-bearing debt

SEK M March 31
2018
March 31
2017
December 31
2017
Other interest-bearing liabilities 10,946 21,728 11,237
Provisions for pensions, interest-bearing 3,170 3,349 3,081
Interest-bearing liabilities 14,116 25,077 14,318
Less cash and cash equivalents -1,037 -2,334 -1,526
Net interest-bearing debt 13,079 22,743 12,792

Note 7 Key figures for the Group

Jan-Mar Jan-Mar Jan-Dec
Financial and operative key figures 2018 2017 2017
Key figures based on Getinge's financial targets
Organic growth in net sales, % 5.4 2.6 1.3
Earnings per share 1)
, SEK
-1.13 0.47 4.37
Other operative and financial key figures
Organic growth in order intake, % 3.1 1.9 2.5
Gross margin, % 49.4 50.5 47.6
Selling expenses, % of net sales 25.6 26.0 22.1
Administrative expenses, % of net sales 15.3 15.3 12.3
Research and development costs, % of net sales 6.6 5.7 5.0
Operating margin, % -3.3 6.3 6.6
EBITDA, SEK M 240 748 3,459
Number of shares2), thousands 272,370 241,780 250,720
Number of shares at the end of the period2),
thousands 272,370 241,780 272,370
Interest-coverage ratio, multiple 8.7 9.1 8.6
Net debt/equity ratio3), multiple 0.65 N/A 0.65
Net debt/Rolling 12m adjusted EBITDA3), multiple 3.2 N/A 3.0
Return on equity3), % 3.9 N/A 6.6
Equity/assets ratio, % 47.7 37.7 47.0
Equity per share3), SEK 73.66 N/A 72.72
Number of employees 10,792 10,300 10,684

1) Before and after dilution

2) Adjusted for bonus issue effect of the rights issue 3) Not applicable due to 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 Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Gross profit 2,404 2,428 10,712
Add-back of:
Depreciation, amortization and write-downs of
intangible and tangible assets
184 182 743
Other items affecting comparability - - 197
Adjusted gross profit 2,588 2,610 11,652
Adjusted EBITDA, SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Operating profit/loss (EBIT) -161 302 1,493
Add-back of:
Depreciation, amortization and write-downs of
intangible and tangible assets 290 291 1,380
Amortization and write-downs of acquired
intangible assets 111 155 586
Other items affecting comparability 350 - 266
Acquisition and restructuring costs 1 28 763
Adjustment for write-downs included in items
affecting comparability and restructuring costs - -1 -203
Adjusted EBITDA 591 775 4,285
Adjusted EBITA, SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Operating profit/loss (EBIT) -161 302 1,493
Add-back of:
Amortization and write-down of acquired
intangible assets
111 155 586
Other items affecting comparability 350 - 266
Acquisition and restructuring costs 1 28 763
Adjusted EBITA 301 485 3,108
Adjusted EBIT, SEK M Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Operating profit/loss (EBIT) -161 302 1,493
Add-back of:
Other items affecting comparability 350 - 266
Acquisition and restructuring costs 1 28 763
Adjusted EBIT 190 330 2,522
Adjusted net profit/loss for the period from
continuing operations, SEK M
Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Net profit/loss for the period from continuing
operations -301 117 1,117
Add-back of:
Amortization and write-down of acquired
intangible assets 111 155 586
Other items affecting comparability 350 - 266
Acquisition and restructuring costs 1 28 763
Tax items affecting comparability - - -302
Tax on add-back items -30 -50 -436
Adjusted net profit for the period from
continuing operations 131 250 1,994

Note 8 Acquisitions

No acquisitions took place the first 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 Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
Net sales - 1,931 6,929
Cost of goods sold - -1,014 -3,863
Gross profit - 917 3,066
Selling expenses - -383 -1,425
Administrative expenses - -187 -992
Research and development costs - -35 -118
Restructuring costs - -69 -250
Other operating income and expenses - -5 13
Operating profit (EBIT) - 238 294
Net financial items - -14 -84
Profit after financial items - 224 210
Taxes - -60 -57
Net profit for the period from the operations - 164 153
Profit from translation differences and hedges - - 127
Net profit for the period - 164 280
Jan-Mar
2018
Jan-Mar
2017
Jan-Dec
2017
- 153 269
- -90 -320
- 2 4
- 65 -47

Parent Company financial statements

Parent Company's income statement

Jan-Mar Jan-Mar Jan-Dec
SEK M 2018 2017 2017
Administrative expenses -119 -124 -251
Operating result -119 -124 -251
Result from participations in Group companies - - 2,859
Interest income and other similar income 0 359 1,614
Interest expenses and other similar expenses -496 -142 -574
Profit/loss after financial items1) -615 93 3,648
Appropriations - - -420
Taxes 136 -22 -99
Net profit/loss for the period2) -479 71 3,129

1) 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 2) Comprehensive income for the period corresponds to net profit/loss for the period

Parent Company's balance sheet

March 31 March 31 December 31
SEK M 2018 2017 2017
Assets
Intangible assets 83 102 86
Tangible assets 8 4 6
Participations in Group companies 25,455 25,016 25,455
Deferred tax assets 323 211 189
Long-term receivables 56 - 53
Receivables from Group companies 143 5,763 953
Current receivables 223 137 191
Total assets 26,291 31,233 26,933
Equity and liabilities
Equity 12,105 9,157 12,584
Long-term liabilities 4,280 14,789 4,257
Long-term liabilities to Group companies 669 - 659
Current liabilities to Group companies 3,466 15 2,990
Current liabilities 5,771 7,272 6,443
Total equity and liabilities 26,291 31,233 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, 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 amortization 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 writedowns.

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. Equity in relation to the number of shares at the end of the period.

Free cash flow. Cash flow from operating activities and investing activities, excluding acquisitions and divestments of business.

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 prior year.

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 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.

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 sterilizer. 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 April 26, 2018 at 12:30–1:30 p.m. CEST. Please see dial in details below to join the conference:

Sweden: +46 (0)8 5033 6574 UK: +44 (0)330 336 9105 USA: +1 323-794-2093 Code: 2355796

A presentation will be held during the telephone conference. To access the presentation, please use this link: https://slideassist.webcasts.com/starthere.jsp?ei=1189644

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

A recording of the teleconference will be available for 90 days via the following link: https://slideassist.webcasts.com/starthere.jsp?ei=1189644

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 start of 2019:

Interim report January–June
Interim report January–September
Capital Market Day (date, time and place will be announced later in 2018)
Year-End Report 2018
2018 Annual Report

Contact

Jeanette Hedén Carlsson, Executive Vice President, Communications & Brand Management +46 (0) 10 335 1003 [email protected]

Lars Mattsson, Head of Investor Relations +46 (0)10 335 0043 [email protected]

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 April 26, 2018 at 10:30 a.m. CEST.

Getinge AB (publ)

Lindholmspiren 7 SE-417 56 Gothenburg Sweden

Tel: +46 (0)10 335 0000 E-mail: [email protected] Corporate registration number: 556408-5032 www.getinge.com

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