Getinge

Quarterly Report • Oct 18, 2016

Interim Report January – September 2016

THIRD QUARTER OF 2016 IN BRIEF JANUARY-SEPTEMBER 2016 IN BRIEF

• Order intake decreased 3.0% to SEK 7,176 M (7,397). The order intake declined organically by 3.2%.
• Net sales increased 0.1% to SEK 6,929 M (6,925). Net sales increased organically by 0.2%.
• Gross margin increased to 47.3% (46.8).
• EBITA* improved 16.3% to SEK 963 M (828).
• Restructuring costs increased to SEK 732 M (213). SEK 628 M comprises a provision for the FDA-related remediation program, writedown of an R&D project and costs for changes among senior executives.
• Profit before tax decreased 146.2% to SEK -110 M (238), due to increased restructuring costs.
• Earnings per share decreased to SEK -0.36 (0.73).
• Good cost control as a consequence of the efficiency-enhancement program, Big 5.
• Changes to Getinge Executive Team, Acting CEO, new CFO and HR Director.
• FDA update, SEK 400 M provision related to the remediation program.
• Changed outlook, moderately negative sales growth for the full year.

• Key event after the reporting period, further developed and focused strategy, and preparation for distribution of Patient & Post-Acute Care to shareholders of Getinge.

• Order intake decreased 2.5% to SEK 21,560 M (22,105). The order intake fell organically by 0.7%.

• Net sales decreased 2.8% to SEK 20,233 M (20,818). Net sales fell organically by 1.1%.

• Gross margin amounted to 46.7% (46.7).

• EBITA* improved 4.9% to SEK 2,371 M (2,260).
• Restructuring costs increased to SEK 992 M (483).
• Profit before tax decreased 42.8% to SEK 358 M (626).
• Earnings per share decreased to SEK 1.03 (1.81).

FINANCIAL SUMMARY
	Q3	Q3		Jan-Sep	Jan-Sep		FY
MSEK	2016	2015	Change %	2016	2015	Change %	2015
Order intake	7 176	7 397	-3.0%	21 560	22 105	-2.5%	30 431
Net sales	6 929	6 925	0.1%	20 233	20 818	-2.8%	30 235
Gross Profit	3 275	3 240	1.1%	9 453	9 713	-2.7%	14 163
Gross margin	47.3%	46.8%	0.5%	46.7%	46.7%	0.0%	46.8%
EBITA*	963	828	16.3%	2 371	2 260	4.9%	4 179

EBITA margin* 13.9% 12.0% 1.9% 11.7% 10.9% 0.8% 13.8% Operating profit 49 421 -88.4% 838 1 184 -29.2% 2 729 Profit before tax - 110 238 -146.2% 358 626 -42.8% 1 997 Net profit - 81 174 -146.6% 261 457 -42.9% 1 457 Earnings per share, SEK - 0.36 0.73 -149.3% 1.03 1.81 -43.1% 5.83 Cash flow from operations 725 724 0.1% 1 888 1 974 -4.4% 3 458

* Before restructuring, acquisition and integration costs

COMMENTS BY THE CEO

High level of activity and key decisions for longterm profitable growth

The third quarter of the year was characterized by a high level of activity. We focused on both the short-term agenda and the long-term direction of the Group. The ongoing transformation program and Big 5 efficiency-enhancement program continues according to plan. Since the transformation program was launched just over a year ago, we have achieved major improvements in terms of coordination and consolidation. This is reflected in the positive development in EBITA before restructuring costs, increasing by 16.3% in the quarter. We also accelerated our strategic review during the quarter and made key decisions in ensuring our long-term profitabile growth.

The organic order intake for the quarter did not meet expectations, but must also be viewed in light of a strong corresponding quarter in 2015. In total, net sales rose organically by a modest 0.2%. Acute Care Therapies continued to report organic growth, while Surgical Workflows performed in line with the preceding year. The negative development in Patient & Post-Acute Care continued, although the downturn dissipated slightly. In geographic terms, performance remained mixed, with the Americas region posting a positive performance, whereas the EMEA region reported a slight decline. The APAC region's performance was unchanged year-on-year. The overall development in the order intake and net sales contributed to an adjustment to our outlook for the full-year from moderate organic growth in net sales to moderately negative.

Improvement work at Hechingen continued at the same robust rate as before. We have made the assessment that additional investments of SEK 400 M are required in relation to the remediation program. It is important to point out that the Consent Decree we reached with the FDA in the beginning of 2015 entails compulsory annual inspections at the production units encompassed by the Decree. These inspections will determine whether additional investments are needed to meet the FDA's requirements and expectations. Accordingly, we cannot at the current time rule out that additional sanctions will be made or costs incurred.

Restructuring costs increased to SEK 732 M in the quarter and had a substantial impact on profit after tax. These higher costs were related to the provision of SEK 400 M, costs for write-down of an R&D project and costs related to changes to the Getinge Executive Team.

Just over a year ago we launched the transformation program to become One Getinge. Now we are ready to take the next step and we have therefore during the quarter worked intensively on a strategic review aimed at defining the Group's long-term direction and to ensure a long-term profitable growth in all three business category units. As a result of this review we have decided to focus on two business category units, Acute Care Therapies and Surgical Workflows. Based on this, the Getinge Executive Team has been tasked by the Board of Directors to prepare for a distribution and listing of Patient & Post-Acute Care to Getinge shareholders, in order to optimize this business as well. This will be proposed for a decision at an Extraordinary General Meeting to be held in the fall of 2017. The ambition is to complete the listing no later than during the first quarter 2018.

Following a split, both companies will have greater opportunities to continue to develop attractive products and solutions within their respective areas to meet customer needs and thereby help solve healthcare challenges.

Joacim Lindoff, Acting President & CEO

Getinge Group in brief

As previously announced, Getinge introduced a new organizational structure effective January 1, 2016 that better reflects customer requirements and enables more effective governance of the Group. A new financial governance model and reporting structure have been developed to reflect this change. As a result, Getinge has also changed its external reporting structure. This new reporting structure comprises three new operating segments based on the Group's three new Business Category Units: Surgical Workflows, Acute Care Therapies and Patient & Post-Acute Care. Group functions will be reported separately.

ORDER INTAKE

Third quarter of 2016

The Group's order intake for the third quarter amounted to SEK 7,176 M (7,397). The order intake declined organically by 3.2% (5.2), with a negative trend in all Business Category Units.

The organic order intake for the Surgical Workflows declined 1.1% organically, mainly due to a lower order intake in the Infection Control product area. This was partly offset by the positive performance in the Integrated Workflow Solutions and the Surgical Workplaces product areas. Acute Care Therapies reported a 4.1% decline in the order intake for the quarter, primarily as the result of a weak order intake in the Critical Care and Cardiopulmonary product areas. The order intake for Patient & Post-Acute Care fell 4.9%, mainly due to the continued low order intake in the Hygiene Systems and Hospital Beds product groups.

The organic order intake fell 5.5% in the Americas region. In the largest market, the US, the organic order intake declined 2.5%. The EMEA region reported organic growth of 1.6% attributable to the strong performance in Scandinavia and the Middle East. However, growth in the EMEA region was reduced by the weak trend in the DACH countries and Benelux. The organic order intake fell 9.0% in the APAC region, as a result of the weak performance in Australia, India and China. However, this performance must be viewed in light of the very strong quarter in 2015.

January-September 2016

The challenging performance of the third quarter contributed to the total order intake declining 0.7% organically for the first three quarters of the year.

Order intake regions, MSEK	Q3 2016	Q3 2015	Change %*	Jan-Sep 2016	Jan-Sep 2015	Change %*	Rolling 12M	FY 2015
EMEA	3 103	3 119	1.6%	9 272	9 482	0.6%	12 882	13 092
Americas	2 773	2 913	-5.5%	8 577	8 824	-1.6%	11 728	11 975
APAC	1 300	1 365	-9.0%	3 711	3 799	-1.9%	5 276	5 364
Group, total	7 176	7 397	-3.2%	21 560	22 105	-0.7%	29 886	30 431

* Adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Third quarter of 2016

The Group's net sales for the quarter amounted to SEK 6,929 M (6,925). The organic increase was 0.2% (1.1).

Organic sales rose 1.3% in Acute Care Therapies, but fell by 0.1% and 0.9% in Surgical Wofkflows and Patient & Post-Acute Care. Organic sales in the EMEA region declined by 0.7%, but increased by 1.3% in the Americas region. The APAC region's organic sales were unchanged (0.0%) year-on-year.

The gross margin increased to 47.3% (46.8) due to exchange-rate effects and the reduction of medical device tax in the US. The Group's selling expenses fell by 5.1%, primarily as a result of the Group's ongoing Big 5 efficiency-enhancement program. EBITA before restructuring, acquisition and integration costs amounted to SEK 963 M (828) for the third quarter. Exchange-rate effects had a positive effect of approximately SEK 32 M on EBITA compared with the preceding year.

The quarter was charged with higher restructuring costs of a total of SEK 732 M (213). These increased costs refer to a provision of SEK 400 M for the FDA-related remediation program and write-down of capitalized development costs of SEK 158 M. Also included are costs of SEK 70 M related to changes to the Getinge Executive Team, which explains the increase in the Group Functions item in the segment overview, page 16. Other restructuring costs were mainly attributable to the ongoing transformation program. Net financial items improved to an expense of SEK -159 M (-183) due to lower average interest rates on loans. Profit before tax fell to SEK -110 M (238), due to the increased restructuring costs. Net profit for the period amounted to SEK -81 M (174).

January-September 2016

After the first three quarters of the year, organic growth in net sales amounted to -1.1%. Good cost control and the Group's ongoing efficiency-enhancement program contribute to the improvement in EBITA before restructuring costs for the January-September period. However, operating profit, profit before tax and net profit for the period were charged with restructuring costs in the third quarter.

Group income state ment in brief	Q3 2016	Q3 2015	Change %	Jan-Sep 2016	Jan-Sep 2015	Change %	FY 2015
Net sales, MSEK	6 929	6 925	0.1%	20 233	20 818	-2.8%	30 235
Adj. for x-rates, acquisi tions and divestments, %			0.2%			-1.1%
Gross Profit, MSEK	3 275	3 240	1.1%	9 453	9 713	-2.7%	14 163
Gross margin, %	47.3%	46.8%	0.5%	46.7%	46.7%	0.0%	46.8%
Operating costs, MSEK	- 2 488	- 2 604	-4.5%	- 7 605	- 8 023	-5.2%	-10 744
EBITA before restructur ing, acquisition and integration costs, MSEK	963	828	16.3%	2 371	2 260	4.9%	4 179
EBITA margin, %	13.9%	12.0%	1.9%	11.7%	10.9%	0.8%	13.8%
Acquisition expenses, MSEK	- 6	- 2		- 18	- 23	-21.7%	- 33
Restructuring and integra tion costs, MSEK	- 732	- 213		- 992	- 483	105.4%	- 657
EBIT, MSEK	49	421	-88.4%	838	1 184	-29.2%	2 729
EBIT margin, %	0.7%	6.1%	-5.4%	4.1%	5.7%	-1.6%	9.0%

CASH FLOW AND FINANCIAL POSITION

Operating cash flow amounted to SEK 725 M (724) for the quarter, corresponding to a cash conversion of a 89.5% (69.0). Net investments amounted to SEK 247 M (210). The Group's cash and cash equivalents at the end of the period amounted to SEK 1,812 M (1,544) and interest-bearing net debt was SEK 23,293 M (23,525). The equity/assets ratio amounted to 35.5% (35.2) and net debt/equity ratio to 1.21 (1.25).

RESEARCH AND DEVELOPMENT

The Group's research and development costs for the quarter amounted to SEK 270 M (305), corresponding to 3.9% (4.4) of the Group's net sales. The new organizational structure is expected to have a positive contribution on the Group's continued research and development work due to enhanced coordination and customer focus.

EFFICIENCY-ENHANCEMENT PROGRAM - THE BIG 5: CONTINUED SAVINGS

Work on the Group's Big 5 efficiency-enhancement program is progressing according to plan. During the quarter, the program generated savings of SEK 95-100 M, as a consequence of a higher level of coordination and economies of scale in the Group. The Big 5 program comprises five initiatives: lean support and administration, indirect spend optimization, direct spend reduction, portfolio simplification and commercial excellence.

UPDATE REGARDING CONSENT DECREE WITH THE FDA

As previously announced, a US federal judge approved the terms of a Consent Decree between Getinge Group's former Medical Systems business area and the FDA on February 3, 2015. The Consent Decree encompasses four legal entities: Atrium Medical Corporation in Hudson (New Hampshire, USA), Wayne (New Jersey, USA) and Rastatt and Hechingen (Germany).

Under the terms of the Consent Decree, ongoing third-party inspections are carried out at the production units encompassed by the Decree. As previously announced, such an inspection was performed in Hechingen. An improvement plan has been developed and intense work has been carried out on activities under this plan. Getinge Group is still awaiting the FDA's decision on the action plan it produced, but has reserved an additional SEK 400 M in relation to the remediation program, mainly related to Hechingen.

The Consent Decree also entails that annual inspections will be performed by the FDA at the production units encompassed by the Decree. These inspections will determine whether additional investments are needed to meet the FDA's requirements and expectations. Accordingly, we cannot at the current time rule out that additional sanctions will be made or costs incurred.

Refer to Note 2 on page 21 for further information.

OTHER KEY EVENTS DURING THE QUARTER

Changes to Getinge Executive Team

The Board of Directors of Getinge AB decided during the quarter to make a change to the position of President of Getinge, which meant that Getinge's President, CEO and board member, Alex Myers, left in August. Joacim Lindoff, who was appointed Acting President and CEO, has been employed at Getinge since 1999 and has experience from various senior positions within the Group. Previously Joacim Lindoff served as Executive Vice President of the Infection Control business area and has since January 1, 2016, headed up Surgical Workflows and is a member of the Getinge Executive Team. The process to recruit a new permanent President and CEO of Getinge is under way.

Getinge Group also appointed Reinhard Mayer as new CFO and Magnus Lundbäck as new Executive Vice President Human Resources and Sustainability during the quarter. Reinhard Mayer took office as CFO on September 13 and most recently served as Executive Vice President Supply Chain. He was the CFO of the Medical Systems business area between 2002 and 2015. Reinhard succeeds Pernille Fabricius who left Getinge in September. Magnus Lundbäck returns to Getinge in the role of Executive Vice President Human Resources & Sustainability after having served as Senior Vice President HR & Sustainability at Gunnebo AB for three years. He succeeds Andreas Quist and will take office in the first quarter of 2017.

Both Reinhard Mayer and Magnus Lundbäck will be members of the Getinge Executive Team and report to the President and CEO.

Product launches during the quarter

A number of updates in existing product areas took place in the quarter. One example is the launch of MODUEVO in Surgical Workflows. MODUEVO is a new generation of Ceiling Supply Units that optimize workflows in operating rooms and intensive-care units, with the goal to contribute to enhanced quality, safety and productivity.

Supplementary products in the SERVO product family were launched in Acute Care Therapies, comprising ventilators that use advanced technology to ensure that air flows are adjusted to patient needs. During the quarter, Getinge introduced SERVO COMPASS™, which clearly and pedagogically visualizes changes in tidal volume and different pressureparameters important for the ventilation of the patient. A supplementary range of products called High Flow Therapy were also introduced for SERVO ventilators during the quarter. The High Flow Therapy function means that patients can be supplied with additional oxygen to aid breathing. Getinge is unique in offering a ventilator that can switch between a common ventilator function and High Flow Therapy.

OUTLOOK (CHANGED)

We expect moderately negative organic sales growth in 2016.

Currency transaction effects are expected to have a positive impact of approximately SEK 150 M (-273) on the Group's 2016 earnings.

The financial consequences of the Consent Decree with the FDA*, excluding reconstruction costs, are related to loss of revenue and are expected to have a negative impact of approximately SEK 130 M on the Group's 2016 operating profit. As previously mentioned, the Group is still awaiting the FDA's decision on the action plan related to the production unit in Hechingen. The financial consequences could be adjusted in line with the final plan in the future.

Restructuring costs for the full year 2016 are expected to amount to approximately SEK 1,260 M (657).

*Refer to Note 2 on page 21 for further information.

Surgical Workflows

The Surgical Workflows Business Category Unit develops solutions for infection control, operating rooms and advanced IT systems for traceability and management of the flow of sterile equipment as well as for optimal use of resources. The Group's Life Science segment is also included in this Business Category Unit.

ORDER INTAKE

The order intake for the quarter declined organically by 1.1% year-on-year. The lower order intake in Infection Control was offset by a strong quarter in Integrated Workflow solutions and Surgical Workplaces, which reported a favorable performance, for example in the Middle East. The organic order intake in the EMEA region increased by 6.6%, while the development was weak in both APAC (-4.4%) and the Americas (-12.7%).

Order Intake regions, MSEK	Q3 2016	Q3 2015	Change %*	Jan-Sep 2016	Jan-Sep 2015	Change %*	Rolling 12M	FY 2015
EMEA	1 423	1 364	6.6%	3 973	4 039	1.2%	5 646	5 712
Americas	652	736	-12.7%	2 026	2 166	-5.2%	2 824	2 964
APAC	635	633	-4.4%	1 657	1 641	0.7%	2 353	2 337
Surgical Work flows, total	2 710	2 733	-1.1%	7 656	7 846	-0.7%	10 823	11 013

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Net sales decreased organically by 0.1% compared with year-earlier period as a result of lower invoicing in Surgical Workplaces and Infection Control. However, the development was positive in Life Science and Integrated Workflow Solutions, which reported a strong quarter.

The gross margin for Surgical Workflows increased year-on-year to 40.0% (38.8). Selling and administrative expenses declined overall in the quarter as an effect of the Group's ongoing efficiency-enhancement program. EBITA before restructuring, acquisition and integration costs amounted to SEK 293 M (228). Exchange-rate fluctuations of approximately SEK 25 M positively impacted EBITA compared with the preceding year. Restructuring costs amounted to SEK 45 M (14), primarily as a result of the transformation and efficiencyenhancement programs.

	Q3	Q3	Change	Jan-Sep	Jan-Sep	Change	FY
Income Statement in brief	2016	2015	%	2016	2015	%	2015
Net sales, MSEK	2 375	2 389	-0.6%	6 702	6 909	-3.0%	10 891
Adj. for x-rates, acquisitions and divestments, %			-0.1%			-1.2%
Gross Profit, MSEK	950	928	2.4%	2 518	2 597	-3.0%	4 228
Gross margin, %	40.0%	38.8%	1.2%	37.6%	37.6%	0.0%	38.8%
Operating costs, MSEK	- 664	- 708	-6.2%	- 2 007	- 2 201	-8.8%	- 3 023
EBITA before restructuring, acquisition and integration costs, MSEK	293	228	28.5%	531	418	27.0%	1 233
EBITA margin, %	12.3%	9.5%	2.8%	7.9%	6.1%	1.8%	11.3%
Acquisition expenses, MSEK	- 4	- 4	0.0%	- 5	- 5	0.0%	- 9
Restructuring and integra tion costs, MSEK	- 45	- 14		- 124	- 86	44.2%	- 142
EBIT, MSEK	237	202	17.3%	382	305	25.2%	1 054
EBIT margin, %	10.0%	8.5%	1.5%	5.7%	4.4%	1.3%	9.7%

10 700 10 900 11 100 11 300 11 500 11 700 11 900 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 MSEK MSEK NET SALES (organic) Net Sales Net Sales, rolling 12M

Acute Care Therapies

The Acute Care Therapies Business Category Unit 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.

ORDER INTAKE

The organic change totaled -4.1% in the quarter, mainly as a result of a lower order intake in Critical Care and Cardiopulmonary. All geographic markets posted a negative performance. The change was most evident in the APAC region, with Southern and Southeast Asia continuing to report a lower organic order intake compared with the year-earlier period. However, this performance must be viewed in light of the strong quarter in 2015.

Order Intake regions, MSEK	Q3 2016	Q3 2015	Change %*	Jan-Sep 2016	Jan-Sep 2015	Change %*	Rolling 12M	FY 2015
EMEA	822	862	-3.4%	2 645	2 651	2.3%	3 609	3 615
Americas	1 431	1 444	-2.0%	4 465	4 410	2.0%	6 012	5 957
APAC	475	510	-11.2%	1 457	1 421	2.6%	2 101	2 065
Acute Care Therapies, total	2 728	2 816	-4.1%	8 567	8 482	2.2%	11 722	11 637

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Net sales for Acute Care Therapies increased organically by 1.3% in the third quarter. The gross margin increased year-on-year to 56.8% (56.3). Loss of revenue attributable to the Consent Decree with the FDA was offset by higher organic sales. The total of administrative and selling expenses were in line with the preceding year and EBITA before restructuring costs amounted to SEK 541 M (477). The quarter was charged with restructuring costs of SEK 591 M (143), of which a provision for the FDA-related remediation program accounted for SEK 400 M and write-down of a R&D project for SEK 158 M.

Income Statement in brief	Q3 2016	Q3 2015	Change %	Jan-Sep 2016	Jan-Sep 2015	Change %	FY 2015
Net sales, MSEK	2 748	2 695	2.0%	8 155	8 175	-0.2%	11 577
Adj. for x-rates, acquisi tions and divestments, %			1.3%			1.0%
Gross Profit, MSEK	1 560	1 517	2.8%	4 562	4 532	0.7%	6 428
Gross margin, %	56.8%	56.3%	0.5%	55.9%	55.4%	0.5%	55.5%
Operating costs, MSEK	- 1 158	- 1 191	-2.8%	- 3 572	- 3 528	1.2%	- 4 751
EBITA before restructur ing, acquisition and integration costs, MSEK	541	477	13.4%	1 403	1 451	-3.3%	2 276
EBITA margin, %	19.7%	17.7%	2.0%	17.2%	17.7%	-0.5%	19.7%
Acquisition expenses, MSEK	- 3	2		- 7	- 15	-53.3%	- 18
Restructuring and inte gration costs, MSEK	- 591	- 143		- 687	- 238		- 313
EBIT, MSEK	- 192	185		296	751	-60.6%	1 346
EBIT margin, %	-7.0%	6.9%	-13.9%	3.6%	9.2%	-5.6%	11.6%

Patient & Post-Acute Care

The Patient & Post-Acute Care Business Category Unit offers solutions for daily tasks of lifting and transferring patients. This includes promotion of early mobility and prevention of pressure ulcers and deep vein thrombosis, as well as patient hygiene.

ORDER INTAKE

The order intake declined organically by 4.9% year-on-year. The main reasons for this development were the weak order intake in the APAC and Americas region and lower demand in both the Rental and Capital segments.

Order Intake regions, MSEK	Q3 2016	Q3 2015	Change %*	Jan-Sep 2016	Jan-Sep 2015	Change %*	Rolling 12M	FY 2015
EMEA	858	893	-1.4%	2 654	2 792	-1.9%	3 627	3 765
Americas	690	733	-5.4%	2 086	2 248	-5.2%	2 892	3 054
APAC	190	222	-17.4%	597	737	-16.4%	822	962
Patient & Post-Acute Care, total	1 738	1 848	-4.9%	5 337	5 777	-5.1%	7 341	7 781

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Organic net sales fell by 0.9% in the quarter as a result of the weak performance in the Service and Rental segment. However, the Capital segment posted a positive trend.

The gross margin declined year-on-year to 42.4% (43.2). Selling and administrative expenses declined during the quarter, primarily as the result of the ongoing transformation program. EBITA before restructuring, acquisition and integration costs amounted to SEK 187 M (173) for the third quarter. Exchange-rate fluctuations of approximately SEK 8 M positively impacted EBITA compared with the preceding year. The quarter was charged with restructuring costs amounting to SEK 6 M (46), mainly related to the transformation and efficiency-enhancement programs.

	Q3	Q3	Change	Jan-Sep	Jan-Sep	Change	FY
Income Statement in brief	2016	2015	%	2016	2015	%	2015
Net sales, MSEK	1 806	1 841	-1.9%	5 376	5 734	-6.2%	7 767
Adj. for x-rates, acquisitions and divestments, %			-0.9%			-3.7%
Gross Profit, MSEK	765	796	-3.9%	2 373	2 585	-8.2%	3 507
Gross margin, %	42.4%	43.2%	-0.8%	44.1%	45.1%	-1.0%	45.2%
Operating costs, MSEK	- 608	- 656	-7.3%	- 1 867	- 2 144	-12.9%	- 2 750
EBITA before restructuring, acquisition and integration costs, MSEK	187	173	8.1%	596	541	10.2%	889
EBITA margin, %	10.4%	9.4%	1.0%	11.1%	9.4%	1.7%	11.4%
Acquisition expenses, MSEK	1	-		- 4	- 1		- 4
Restructuring and integra tion costs, MSEK	- 6	- 46		- 49	- 149	-67.1%	- 180
EBIT, MSEK	152	94	61.7%	453	291	55.7%	573
EBIT margin, %	8.4%	5.1%	3.3%	8.4%	5.1%	3.3%	7.4%

Other information

KEY EVENTS AFTER THE END OF THE REPORTING PERIOD

Further developed and focused strategy, and preparation for distribution of Patient & Post-Acute Care to shareholders of Getinge

Over the last few months, Getinge has performed a company-wide strategic review to clarify the most optimal long-term strategy for the company and to ensure sustainable and profitable growth that captures growth opportunities for all business areas.

As a result, Getinge has decided to focus on two business areas, Acute Care Therapies and Surgical Workflows. The Acute Care Therapies offering includes solutions for cardiac, pulmonary and vascular therapies and a broad selection of products and therapies for intensive care. Surgical Workflows develops products and solutions for infection control, equipment for surgical workplaces and advanced IT systems for hospitals.

Based on the long-term strategic direction, the Board of Directors has tasked the management of Getinge Group to prepare for a distribution and listing of Patient & Post-Acute Care, formerly Extended Care, in accordance with Lex ASEA*. The proposal will be presented for a decision by the shareholders at an Extraordinary General Meeting to be held in the fall of 2017. Should the EGM approve the Board's proposal, the aim is to complete the listing no later than during the first quarter of 2018.

Patient & Post-Acute Care's offering encompasses products and solutions for safe patient handling, prevention of venous thromboembolisms, medical beds, hygiene systems and early mobility among others.

The future listing of Patient & Post-Acute Care will increase the ability for both companies to successfully realize their strategies and to best continue to enhance customer benefits and shareholder value.

The financial targets for both companies will be determined and presented as part of the preparation work.

* Lex ASEA means, in brief, that a parent company can, under certain circumstances, distribute the company's shares in a subsidiary to its shareholders without any immediate Swedish taxation arising on the distribution for the shareholder.

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 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 in the future 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. The Group has a Groupwide function that is responsible for quality and regulatory issues and coordinates and leads work on developing the quality function and efficient shared processes. 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.

Research and development

To a certain extent, Getinge's future growth 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 company prioritizes correctly when choosing which potential projects to pursue. This process comprises thorough analysis of the market, technical development and choice of production method and 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. A comprehensive insurance program is in place to cover any property or liability risks (e.g. product liability) to which the Group is exposed.

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, the Group actively upholds its rights and monitors competitors' activities closely. If required, the company 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 Group management 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 first 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

Getinge had no significant transactions with related parties other than transactions with subsidiaries.

ACCOUNTING

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 and RFR 2. The accounting policies adopted are consistent with those applied for the 2015 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. The primary alternative performance measures presented in this interim report are EBITA, cash conversion and net debt/equity ratio. Definitions and reconciliations of the alternative performance measures are presented on pages 22-23.

From the first quarter of 2016, the Group's operating segments comprise the new Business Category Units of Surgical Workflows, Acute Care Therapies and Patient & Post-Acute Care. These Business Category Units are consolidated according to the same principles as for the Group in its entirety and Group functions are reported separately. The change entails that the previous organizational structure, comprising three independent business areas, has been replaced with a functional structure. The Group has developed a new governance model and reporting structure to reflect this change. As a result, Getinge has also changed its external reporting structure.

NOMINATION COMMITTEE AHEAD OF 2017 ANNUAL GENERAL MEETING

Pursuant to a resolution by Getinge AB's 2005 General Meeting, the Nomination Committee comprises Getinge's Chairman and representatives for the five largest shareholders at August 31, 2016, as well as a representative for minority shareholders. Ahead of the 2017 Annual General Meeting, this means that Getinge's Nomination Committee comprises: a representative from Carl Bennet AB, Folksam, the First Swedish National Pension Fund, the Fourth Swedish National Pension Fund, Nordea and a representative for minority shareholders.

Shareholders who would like to submit proposals to Getinge's 2017 Nomination Committee, can contact the Nomination Committee by e-mail at valberedningen@getinge.com or by mail: Getinge AB, Att: Nomination Committee, Box 8861, SE-402 72 Gothenburg, Sweden.

2017 ANNUAL GENERAL MEETING (AGM)

Getinge AB's Annual General Meeting will be held on March 29, 2017 at 2:00 p.m. in Kongresshallen at Hotel Tylösand in Halmstad, Sweden. Shareholders wishing to have a matter addressed at the Annual General Meeting on March 29, 2017 can submit their proposal to Getinge's Board Chairman by e-mail: arenden.bolagsstamma@getinge.com, or by mail: Getinge AB, Att: Bolagsstämmoärenden, Box 8861, SE-402 72 Gothenburg, Sweden. To ensure inclusion in the notice and thus in the Annual General Meeting's agenda, proposals must be received by the company not later than February 10, 2017.

FORWARD-LOOKING INFORMATION

This report contains forward-looking information based on the current expectations of Getinge's Group management. Although management deems that the expectations presented by such forward-looking 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 economy, market and competition, changes in legal requirements and other political measures, and fluctuations in exchange rates.

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, October 18, 2016

Carl Bennet Johan Bygge Cecilia Daun Wennborg Chairman Åke Larsson Rickard Karlsson Carola Lemne Johan Malmquist Joacim Lindoff Malin Persson Acting CEO Johan Stern Maths Wahlström Vice Chairman

REPORT OF REVIEW OF INTERIM FINANCIAL INFORMATION

Introduction

We have reviewed the condensed interim financial information (interim report) of Getinge AB as of 30 September 2016 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Gothenburg, 18th October 2016

Öhrlings PricewaterhouseCoopers AB

Johan Rippe Eric Salander Authorized Public Accountant Authorized Public Accountant Auditor in charge

Consolidated income statement

	Q3	Q3		Jan-Sep	Jan-Sep		FY
MSEK	2016	2015	Change %	2016	2015	Change %	2015
Net sales	6 929	6 925	0.1%	20 233	20 818	-2.8%	30 235
Cost of goods sold	- 3 654	- 3 865	-5.5%	- 10 780	- 11 105	-2.9%	- 16 072
Gross profit	3 275	3 240	1.1%	9 453	9 713	-2.7%	14 163
Selling expenses	- 1 537	- 1 620	-5.1%	- 4 629	- 4 980	-7.0%	- 6 605
Administrative expenses	- 835	- 802	4.1%	- 2 491	- 2 533	-1.7%	- 3 300
Research & development costs*	- 141	- 137	2.9%	- 468	- 438	6.8%	- 598
Acquisition expenses	- 6	- 2		- 18	- 23	-21.7%	- 33
Restructuring and integration costs	- 732	- 213		- 992	- 483	105.4%	- 657
Other operating income and expenses	25	- 45	-	- 17	- 72	-76.4%	- 241
Operating profit**	49	421	-88.4%	838	1 184	-29.2%	2 729
Financial net	- 159	- 183	-13.1%	- 480	- 558	-14.0%	- 732
Profit before tax	- 110	238	-146.2%	358	626	-42.8%	1 997
Taxes	29	- 64	-145.3%	- 97	- 169	-42.6%	- 540
Net profit	- 81	174	-146.6%	261	457	-42.9%	1 457
Attributable to:
Parent company´s shareholders	- 86	173	-149.7%	245	432	-43.3%	1 390
Non-controlling interest	5	1		16	25	-36.0%	67
Net profit	- 81	174	-146.6%	261	457	-42.9%	1 457
Earnings per share***
	- 0.36	0.73	-149.3%	1.03	1.81	-43.1%	5.83
	Q3	Q3		Jan-Sep	Jan-Sep		FY
Operative key figures %	2016	2015		2016	2015		2015
Gross margin	47.3	46.8		46.7	46.7		46.8
Selling expenses in % of net sales	22.2	23.4		22.9	23.9		21.8
Administrative expenses in % of net sales	12.1	11.6		12.3	12.2		10.9
Research & development costs in % of net sales	3.9	4.4		4.4	4.6		4.3
Operating margin	0.7	6.1		4.1	5.7		9.0
	Q3	Q3		Jan-Sep	Jan-Sep		FY
MSEK	2016	2015	Change %	2016	2015	Change %	2015
* Research & development expenses	- 270	- 305	-11.5%	- 883	- 952	-7.2%	- 1 300
of which has been capitalized	129	168	-23.2%	415	514	-19.3%	702
	- 141	- 137	2.9%	- 468	- 438	6.8%	- 598
** Operating profit is charged with depreciations and write-downs on
intangibles on acquired companies	- 176	- 191	-7.9%	- 523	- 570	-8.2%	- 761
intangibles	- 358	- 180	98.9%	- 732	- 523	40.0%	- 710
other fixed assets	- 227	- 254	-10.6%	- 680	- 743	-8.5%	- 987
	- 761	- 625	21.8%	-1 935	- 1 836	5.4%	- 2 458

*** Before and after dilution

Comprehensive earnings statement

	Q3	Q3	Jan-Sep	Jan-Sep	FY
MSEK	2016	2015	2016	2015	2015
Net profit for the period	- 81	174	261	457	1 457
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined benefit pension plans	- 41	22	- 182	89	- 23
Income tax attributable to components in other comprehensive
income	9	- 5	35	- 18	6
Items that can later be restated in profit for the period
Translation differences	293	- 205	368	299	- 115
Cash-flow hedges	113	57	- 191	21	340
Income tax attributable to components in other comprehensive
income	- 25	- 13	42	- 5	- 75
Other comprehensive income/loss for he period, net after tax	349	- 144	72	386	133
Total comprehensive income for the period	268	30	333	843	1 590
Comprehensive income attributable to
Parent company´s shareholders	253	29	298	818	1 528
Non-controlling interest	15	1	35	25	62

Quarterly results

	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
MSEK	2014	2015	2015	2015	2015	2016	2016	2016
Net sales	8 458	6 712	7 181	6 925	9 417	6 377	6 927	6 929
Cost of goods sold	- 4 279	- 3 570	- 3 850	- 3 685	- 4 968	- 3 366	- 3 760	- 3 654
Gross profit	4 179	3 142	3 331	3 240	4 449	3 011	3 167	3 275
Operating costs	- 2 641	- 2 807	- 2 903	- 2 819	- 2 904	- 2 695	- 2 694	- 3 226
Operating profit	1 538	335	428	421	1 545	316	473	49
Financial Net	- 167	- 189	- 185	- 183	- 174	- 159	- 162	- 159
Profit before tax	1 371	146	243	238	1 371	157	311	- 110
Taxes	- 376	- 39	- 66	- 64	- 372	- 42	- 84	29
Net profit	995	107	177	174	999	115	227	- 81

Segment overview

						FY
2016	2015	Change %	2016	2015	Change %	2015
2 375	2 389	-0.6%	6 702	6 909	-3.0%	10 891
	2 695	2.0%		8 175	-0.2%	11 577
1 806	1 841	-1.9%	5 376	5 734	-6.2%	7 767
6 929	6 925	0.1%	20 233	20 818	-2.8%	30 235
	Q3 2 748	Q3		Jan-Sep 8 155	Jan-Sep

Operating Profit, MSEK	Q3 2016	Q3 2015	Change %	Jan-Sep 2016	Jan-Sep 2015	Change %	FY 2015
Surgical Workflows	237	202	17.3%	382	305	25.2%	1 054
Acute Care Therapies	- 192	185		296	751	-60.6%	1 346
Patient & Post-Acute Care	152	94	61.7%	453	291	55.7%	573
Group functions*	-148	- 60		-293	- 163	79.8%	- 244
Operating profit	49	421	-88.4%	838	1 184	-29.2%	2 729
Financial net	- 159	- 183	-13.1%	- 480	- 558	-14.0%	- 732
Profit before tax for the group	- 110	238	-146.2%	358	626	-42.8%	1 997

* Group functions refer mainly to central functions such as finance, communication, human resources and administration

Consolidated balance sheet

Assets, MSEK	30-Sep 2016	30-Sep 2015	31- Dec 2015
Intangible assets	26 976	27 143	26 704
Capitalized Development Projects	3 721	3 689	3 839
Tangible fixed assets	4 691	4 846	4 699
Financial fixed assets	1 695	1 552	1 374
Inventory	6 139	6 182	5 409
Accounts receivable	6 373	5 858	7 470
Other current receivables	2 843	2 742	2 272
Cash and cash equivalents	1 812	1 544	1 468
Total assets	54 250	53 556	53 235
	30-Sep	30-Sep	31-Dec
Shareholders' equity & Liabilities, MSEK	2016	2015	2015
Shareholders' equity	19 251	18 855	19 593
Provisions for pensions, interest-bearing	3 176	3 171	3 052
Other interest bearing liabilities	21 929	21 898	21 283
Other Provisions	2 382	2 402	2 243
Accounts Payable	1 753	1 935	1 986
Other non interest-bearing liabilities	5 759	5 295	5 078
Total Equity & Liabilities	54 250	53 556	53 235

Consolidated net interest-bearing debt

	30-Sep	30-Sep	31-Dec
MSEK	2016	2015	2015
Debt to credit institutions	21 929	21 898	21 283
Provisions for pensions, interest-bearing	3 176	3 171	3 052
Interest-bearing liabilities	25 105	25 069	24 335
Less liquid funds	-1 812	- 1 544	- 1 468
Net interest-bearing debt	23 293	23 525	22 867

Consolidated cash-flow statement

	Q3	Q3	Jan-Sep	Jan-Sep	FY
MSEK	2016	2015	2016	2015	2015
Current activities
EBITDA	810	1 046	2 773	3 019	5 187
Restructuring cost expenses*	574	213	834	483	657
Restructuring costs paid	- 222	- 235	- 623	- 682	- 918
Adjustment for items not included in cash flow	29	27	61	42	230
Financial items	-159	- 184	- 480	- 558	- 732
Taxes paid	- 139	- 124	- 401	- 650	- 858
Cash flow before changes in working capital	893	743	2 164	1 654	3 566
Changes in working capital
Inventory	- 168	- 255	- 733	- 792	- 171
Current receivables	491	505	1 606	1 432	- 30
Current operating liabilities	- 491	- 269	- 1 149	- 320	93
Cash flow from operations	725	724	1 888	1 974	3 458
Investments
Acquisitions and divestments of business	-	-	- 214	297	261
Capitalized development costs	- 129	- 168	- 415	- 514	- 702
Rental equipment	- 33	- 83	- 107	- 215	- 306
Investments in fixed assets	- 214	- 127	- 615	- 505	- 1 046
Cash flow from investments	- 376	- 378	- 1 351	- 937	- 1 793
Financial activities
Change in interest-bearing debt	- 700	331	150	1 046	295
Change in long-term receivables	54	21	82	21	- 26
Dividend paid	-	-	- 681	- 682	- 691
Cash flow from financial activities	- 646	352	- 449	385	- 422
Cash flow for the period	- 297	698	88	1 422	1 243
Cash and cash equivalents at the beginning of the period	1 845	1 392	1 468	1 482	1 482
Translation differences	264	- 546	256	- 1 360	- 1 257
Cash and cash equivalents at the end of the period	1 812	1 544	1 812	1 544	1 468

* Excluding impairment of assets

Changes in shareholders' equity

		Other
		Capital		Retained		Non-controlling
MSEK	Share capital	provided	Reserves	earnings	Total	interest	Total equity
Opening balance on 1 January 2015	119	5 960	- 153	12 416	18 342	352	18 694
Total comprehensive earnings for the period	-	-	156	1 372	1 528	62	1 590
Dividend	-	-	-	- 667	- 667	- 24	- 691
Closing balance on 31 December 2015	119	5 960	3	13 121	19 203	390	19 593
Opening balance on 1 January 2016	119	5 960	3	13 121	19 203	390	19 593
Total comprehensive earnings for the period	-	-	200	98	298	35	333
Share related remunerations	-	-	-	6	6	-	6
Dividend	-	-	-	-667	-667	-14	-681
Closing balance on 30 September 2016	119	5 960	203	12 558	18 840	411	19 251

Key figures for the Group

	Q3	Q3		Jan-Sep	Jan-Sep		FY
Order intake, MSEK	2016 7 176	2015 7 397	Change % -3.0%	2016 21 560	2015 22 105	Change % -2.5%	2015 30 431
Adj. for x-rates, acquisitions and divestments, %			-3.2%			-0.7%
Net sales, MSEK	6 929	6 925	0.1%	20 233	20 818	-2.8%	30 235
Adj. for x-rates, acquisitions and divestments			0.2%			-1.1%
Gross margin, %	47.3%	46.8%	0.5%	46.7%	46.7%	0.0%	46.8%
EBITA before restructuring-, integration- and acquisi
tion costs, MSEK	963	828	16.3%	2 371	2 260	4.9%	4 179
EBITA margin before restructuring-, integration- and
acquisition costs, %	13.9%	12.0%	1.9%	11.7%	10.9%	0.8%	13.8%
Restructuring and integration costs, MSEK	- 732	- 213	243.8%	- 992	- 483	105.4%	- 657
Acquisition costs, MSEK	- 6	- 2		- 18	- 23	-21.7%	- 33
EBITA, MSEK	225	612	-63.2%	1 361	1 754	-22.4%	3 490
EBITA margin, %	3.2%	8.8%	-5.6%	6.7%	8.4%	-1.7%	11.5%
Earnings per share*, SEK	- 0.36	0.73	-149.3%	1.03	1.81	-43.1%	5.83
Adjusted earnings per share, SEK	2.48	1.98	25.3%	5.79	5.21	11.1%	10.55
Number of shares, thousands	238 323	238 323	-	238 323	238 323	-	238 323
Interest cover, multiple				5.4	4.8	12.5%	4.6
Operating capital, MSEK				42 462	40 465	4.9%	40 771
Return on operating capital, %				8.4%	8.7%	-0.3%	8.6%
Return on equity, %				6.6%	6.1%	0.5%	8.5%
Net debt/equity ratio, multiple				1.21	1.25	-3.2%	1.17
Cash Conversion, %	89.5%	69.0%	20.5%	68.1%	65.4%	2.7%	66.7%
Equity/assets ratio, %				35.5%	35.2%	0.3%	36.8%
Equity per share, SEK				80.78	79.12	2.1%	82.21
Number of employees				15 464	15 779	-2.0%	15 424

* Before and after dilution

Five-year review

	Jan-Sep	Jan-Sep	Jan-Sep	Jan-Sep	Jan-Sep
	2016	2015	2014	2013	2012
Net sales, MSEK	20 233	20 818	18 184	17 530	16 433
Net profit, MSEK	261	457	439	1 055	1 472
Earnings per share*, SEK	1.03	1.81	1.83	4.40	6.15

* Before and after dilution

Income statement for the Parent Company

MSEK	Q3 2016	Q3 2015	Jan-Sep 2016	Jan-Sep 2015	FY 2015
Administrative expenses	- 149	- 55	- 425	- 179	- 261
Operating profit	- 149	- 55	- 425	- 179	- 261
Financial net	- 387	630	- 1 010	- 189	2 420
Profit before tax	- 536	575	- 1 435	- 368	2 159
Taxes	0	- 2	- 6	- 8	- 74
Net profit	- 536	573	- 1 441	- 376	2 085

Receivables and liabilities in foreign currencies were measured at the closing day rate, which resulted in an exchange loss of MSEK 342 (profit 43) recognized in net financial items for the period January-September.

Balance sheet for the Parent Company

Assets, MSEK	30-Sep 2016	30-Sep 2015	31-Dec 2015
Intangible fixed assets	3	-	-
Tangible fixed assets	110	77	104
Shares in group companies	25 133	25 082	25 112
Deferred tax assets	54	43	54
Receivables from group companies	5 578	6 312	8 333
Current receivables	108	113	70
Total assets	30 986	31 627	33 673
	30-Sep	30-Sep	31-Dec
Shareholders' equity & Liabilities, MSEK	2016	2015	2015
Shareholders' equity	7 899	7 541	10 000
Long-term liabilities	16 487	16 627	15 929
Liabilities to group companies	1 129	2 296	2 396
Current liabilities	5 471	5 163	5 348
Total Equity & Liabilities	30 986	31 627	33 673

Note 1 Acquisitions in 2016

ACCUMED

The acquisition of AccuMed was completed in April 2016. Under the acquisition, Getinge will obtain a manufacturing unit for the production of medical textiles in the Dominican Republic. The operations have about 400 employees and the total purchase consideration amounted to SEK 66 M. The goodwill arising in connection with the acquisition amounted to SEK 29 M and was attributable to future integration synergies for production. Acquisition expenses of SEK 1.0 M were charged to earnings.

	Carrying
Net assets, MSEK	amount
Tangible assets	16
Inventory	22
Other current liabilities	- 1
Identifiable net assets	37
Goodwill	29
Purchase price	66
Less:
Liquid funds in the acquired company	0
Net outflow on liquid funds	66

The operation was included in Getinge's consolidated financial statements on April 1, 2016.

1ST CALL MOBILITY LIMITED

All of the shares in the UK company 1st Call Mobility Limited were acquired during the second quarter. The company is specialized in medicaldevice solutions for bariatric patients, generates sales of approximately SEK 100 M and has 48 employees. The total purchase consideration amounted to SEK 195 M. The consolidated surplus that arose in connection with the acquisition has not yet been determined since the acquisition analysis is preliminary but is expected to amount to SEK 125 M. Acquisition expenses of SEK 1.6 M were charged to earnings.

	Carrying
Net assets, MSEK	amount
Intangible assets	34
Tangible assets	5
Inventory	4
Other current receivables	15
Liquid funds	47
Provisions	- 9
Other current liabilities	- 12
Identifiable net assets	84
Goodwill	111
Purchase price	195
Less:
Liquid funds in the acquired company	- 47
Net outflow on liquid funds	148

The operation was included in Getinge's consolidated financial statements on June 10, 2016.

Note 2 FDA Provision

		31-Dec
2016	2015	2015
193	525	525
- 165	- 253	- 332
400	-	-
6	-	-
434	272	193
	30-Sep	30-Sep

Getinge committed SEK 995 M in 2014 related to the remediation program for strengthening former Medical Systems' quality management system, and in the current period an additional SEK 400 M was committed for this purpose, which is recognized as a restructuring cost. During the period, SEK 165 M was utilized for corrections under the remediation program. The total cost for the remediation program (SEK 1,395 M) and fines (SEK 100 M) amounts to SEK 1,495 M.

DEFINITIONS

MEDICAL TERMS

EBIT	Operating profit
EBITA	Operating profit before amortization and write-down of intangible assets identified in conjunction with corporate acquisitions
EBITDA	Operating profit before deprecia tion/amortization and write-down
Cash conversion	Cash flow from operating activities as a percentage of EBITDA.
Adjusted earnings per share	Net profit for the year adjusted for acquisition, restructuring and integra tion costs, and amortization of intangi ble assets on acquired companies di vided by number of shares (average number).
Interest-coverage ratio	Profit after net financial items plus interest expenses and reversal of re structuring costs, as a percentage of interest expenses.
Earnings per share:	Net profit attributable to Parent Company's shareholders in relation to number of shares (average number)
Working capital	Average total assets with a reversal of cash and cash equivalents, other pro visions, accounts payable and other non-interest-bearing liabilities
Return on working capital	Rolling 12 months' operating profit with reversal of restructuring integration and acquisition expenses in relation to working capital
Return on equity	Rolling 12 months' profit after tax in relation to average shareholders' equi ty.
Net debt/equity ratio	Net interest-bearing debt in relation to equity.
Equity/assets ratio	Shareholders' equity in relation to total assets.

Biosurgical mesh	Tissue-friendly products used for surgical treatment of hernias.
Cardiovascular	Pertaining or belonging to both heart and blood vessels.
Cardiopulmonary	Pertaining or belonging to both heart and lungs
Deep vein thrombosis (DVT)	Formation of a blood clot in a deep leg vein.
Tidal volume	The normal volume of air displaced between normal inhalation and exhala tion when extra effort is not applied.
GEOGRAPHIC AREAS

Americas	North, South and Central America
APAC	Asia and Pacific
EMEA	Europe, Middle East and Africa

Reconciliation of 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.

THE GROUP'S PRIMARY PERFORMANCE MEASURES

EBITA	Q3 2016	Q3 2015	Jan-Sep 2016	Jan-Sep 2015	FY 2015
Operating profit, MSEK	49	421	838	1 184	2 729
Add-back of depreciations and write-downs on acquired
companies, MSEK	176	191	523	570	761
EBITA, MSEK	225	612	1 361	1 754	3 490

EBITA BEFORE RESTUCTURING, INTEGRATION	Q3	Q3	Jan-Sep	Jan-Sep	FY
AND ACQUISITION COSTS	2016	2015	2016	2015	2015
Operating profit, MSEK	49	421	838	1 184	2 729
Add-back of depreciations and write-downs on acquired
companies, MSEK	176	191	523	570	761
Add-back of restructuring, integration and acquisition costs,
MSEK	738	216	1 010	506	689
EBITA before restructuring, integration and acquisition
costs, MSEK	963	828	2 371	2 260	4 179

	Q3	Q3	Jan-Sep	Jan-Sep	FY
CASH CONVERSION	2016	2015	2016	2015	2015
Cash flow from operations, MSEK	725	724	1 888	1 974	3 458
EBITDA, MSEK	810	1 046	2 773	3 019	5 187
Cash conversion*, %	89.5%	69.0%	68.1%	65.4%	66.7%

* Cash flow from operating activities as a percentage of EBITDA

	Jan-Sep	Jan-Sep	FY
NET DEBT/EQUITY RATIO	2016	2015	2015
Net debt, MSEK	23 293	23 525	22 867
Equity, MSEK	19 251	18 855	19 593
Net debt/equity ratio*, multiple	1.21	1.25	1.17

* Net interest-bearing debt in relation to equity

TELECONFERENCE

Teleconference with Acting CEO Joacim Lindoff and CFO Reinhard Mayer on October 18, 2016 at 3.00 pm CET

Sweden: +46 (0) 8 5065 3942 UK: +44 (0)20 7026 5967 US: +1 719 325 2202 Code: 5615835

During the telephone conference, a presentation will be held. To access the presentation, please use this link: http://www.livemeeting.com/cc/premconfeurope/join?id=5615835&role=attend&pw=pw6941

NEXT REPORT

The next report from Getinge Group will be published on January 26, 2017.

CONTACT

Kornelia Rasmussen, Executive Vice President, Communications & Brand Management +46 (0)10 335 5810 kornelia.rasmussen@getinge.com

This information is such that Getinge AB must disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on October 18, 2016 at 1:00 p.m. CET.

Getinge AB Theres Svenssons gata 7 Box 8861, SE-402 72 Gothenburg, Sweden Tel: +46 (0) 10 335 00 00 E-mail: info@getinge.com Corporate registration number 556408-5032 www.getingegroup.com

ABOUT GETINGE

Getinge Group is a leading global provider of innovative solutions for operating rooms, intensive-care units, hospital wards, sterilization departments, elderly care and for life science companies and institutions. Getinge's unique customer offering mirrors the hospital's organization and value chain, and the solutions are used before, during and after the patients' hospital stay. Based on first-hand experience and close partnerships, Getinge provides innovative healthcare solutions that improve every-day life for people, today and tomorrow.