Getinge

Annual Report • Jan 29, 2018

Year-End Report

January – December 2017

October – December 2017 in brief

• Order intake increased by 2.3% to SEK 6,624 M (6,473). The order intake increased organically by 6.6%.
• Net sales fell by 0.8% to SEK 7,371 M (7,434). Net sales increased organically by 2.5%.
• Cash flow from operating activities amounted to SEK 1,080 M (1,783). The cash conversion was 70.5% (80.4).
• Gross profit was SEK 3,192 M (3,398) with a gross margin of 43.3% (45.7). Excluding non-recurring items*, gross profit was SEK 3,389 M (3,398) and the gross margin 46.0% (45.7).
• EBITA 1** amounted to SEK 1,111 M (1,689) with an EBITA 1 margin of 15.1% (22.7). Excluding non-recurring items, EBITA 1 amounted to SEK 1,377 M (1,484) and the EBITA 1 margin to 18.7% (20.0).
• Currency effects on gross profit were SEK -52 M and on EBITA 1 SEK +25 M.

• Restructuring and integration costs amounted to SEK 124 M (214).

January – December 2017 in brief

• Order intake increased by 2.8% to SEK 23,228 M (22,603). The order intake increased organically by 2.5%.
• Net sales increased by 1.5% to SEK 22,495 M (22,170). Net sales increased organically by 1.3%.
• Cash flow from operating activities amounted to SEK 2,763 M (3,671). Cash conversion was 62.9% (73.6).
• Gross profit was SEK 10,602 M (10,398) with a gross margin of 47.1% (46.9). Excluding non-recurring items, gross profit amounted to SEK 10,799 M (10,398) and the gross margin to 48.0% (46.9).
• EBITA 1** amounted to SEK 2,842 (3,275) with an EBITA 1 margin of 12.6% (14.8). Excluding non-recurring items, EBITA 1 amounted to SEK 3,108 M (3,275) and the EBITA 1 margin to 13.8% (14.8).
• Restructuring and integration costs amounted to SEK 759 M (1,158).
• Currency effects on gross profit were SEK +254 M and on EBITA 1 SEK +217 M.
• A dividend per share of SEK 1.50 (1.75***) is proposed, corresponding to SEK 409 M (477).

Arjo was 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.

Financial summary

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
	2017	2016	2017	2016
Order intake, SEK M	6,624	6,473	23,228	22,603
Net sales, SEK M	7,371	7,434	22,495	22,170
Gross profit, SEK M	3,192	3,398	10,602	10,398
Gross margin, %	43.3	45.7	47.1	46.9
EBITA 1, SEK M	1,111	1,689	2,842	3,275
EBITA 1 margin, %	15.1	22.7	12.6	14.8
Operating profit (EBIT), SEK M	845	1,308	1,493	1,506
Profit after financial items, SEK M	718	1,181	933	979
Net profit for the period from continuing operations, SEK M	960	872	1,117	723
Earnings per share, SEK (continuing operations)	3.50	3.57	4.37	2.89
Earnings per share, SEK (continuing and discontinued operations)	3.84	3.90	5.49	4.91
Cash flow from operating activities, SEK M	1,080	1,783	2,763	3,671

* Refer to page 4 for non-recurring items. ** EBITA 1: EBITA before acquisition, restructuring and integration costs. See definition on page 24. *** Adjusted for newly issued shares.

Getinge is a global provider of innovative solutions for operating rooms, intensive-care units, sterilization departments and for life science companies and institutions. Based on our first-hand experience and close partnerships with clinical experts, healthcare professionals and medtech specialists, we are improving everyday life for people, today and tomorrow.

Comments by the CEO Increased order intake and sales as well as strengthened underlying gross margin

Customer focus and successful sales initiatives contributed to higher organic order intake and sales in the fourth quarter. All sales regions and business areas reported organic growth in their order intake. Critical Care in Acute Care Therapies stood out with a particularly high order intake for ventilators in EMEA. Surgical Workflows posted a strong performance in Infection Control and Life Science, which is reported as a new business area from 2018. Life Science reported growth above 20%.

Net sales increased organically in both business areas, Acute Care Therapies and Surgical Workflows, and in Americas and APAC, but sales in EMEA were impacted by the lower order intake in prior quarters.

Excluding non-recurring items, gross profit was in line with the year-earlier period, while EBITA 1 was not satisfactory. Operating profit was negatively affected by outstanding Group-wide expenses following the distribution of Arjo. We are tackling this by gradually reducing our operating expenses in relation to sales. The non-recurring costs charged to gross profit for the quarter primarily comprise write-downs of a number of capitalized research projects and inventory impairment.

The remediation program related to the consent decree with FDA continued according to plan at all units concerned during the fourth quarter.

We presented our revised strategy in November, which, in brief, entails that we will focus on products and services used in hospital operating rooms and associated rooms such as central sterile supply departments and intensive care units. We will grow organically with supplementary acquisitions. We will further improve the control of our investments in product development in terms of selecting the fields in which we will invest and how we will govern the individual development projects. We will also enter into partnerships with other companies that possess expertise that we do not intend to develop internally. One example is our strategic partnership with Verb Surgical Inc in digital surgery solutions that we announced in November.

We launched an upgraded version of our Heater Unit, HU-35, on the CE market in our Cardiopulmonary category during the quarter. We also released the latest version of our Getinge Online digital service, which enables Getinge Services to ensure the highest performance and operational reliability for our products with customers. An upgraded version of the Cart Washer Disinfector Getinge 9100E was introduced in the fourth quarter and we installed our 1,000th hybrid operating room in November.

2017 was a year of extensive change for Getinge featuring a revised strategy and new financial targets, a reorganization, a rights issue and the distribution of Arjo. We enter 2018 with all of these elements in place and we will now be able to further focus on continuous operational improvements for our customers, quality efforts and the business as a whole.

Mattias Perjos, President & CEO

Group performance

Order intake

October-December 2017

The Group's order intake for the fourth quarter amounted to SEK 6,624 M (6,473). The order intake increased organically by +6.6%. The order intake for capital goods increased organically by +19.0% during the quarter, while the order intake for disposables declined by -3.3% compared with the yearearlier period.

The order intake for Acute Care Therapies increased organically by +3.8% year-on-year. Critical Care stood out with a particularly high order intake for ventilators in EMEA.

The order intake for Surgical Workflows rose organically by +9.9% during the quarter, mainly attributable to the positive trend in Infection Control and Life Science. Life Science, reported as a new business area from January 2018, posted growth of +21.2%, which was primarily the result of a number of large orders in Isolation, Sterile Transfer and Sterilization from pharmaceutical companies in EMEA.

All three sales regions reported organic growth in their quarterly order intake. EMEA provided the largest increase, with both of Getinge's business areas performing strongly. Growth in Americas was attributable to the favorable trend in Infection Control in Surgical Workflows and Critical Care in Acute Care Therapies. Organic growth in APAC was primarily attributable to the solid performance of Surgical Workflows, particularly in Infection Control and Life Science, which secured a major order in Sterilizers.

January-December 2017

Fourth-quarter growth contributed to a +2.5% increase in organic order intake for 2017 compared with 2016.

Order intake regions, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	2,366	2,508	1.4%	9,149	9,013	1.2%
APAC	1,502	1,546	2.1%	4,744	4,693	1.4%
EMEA	2,756	2,419	15.0%	9,335	8,897	4.4%
Total	6,624	6,473	6.6%	23,228	22,603	2.5%

Net sales and results

October-December 2017

Getinge's net sales for the fourth quarter amounted to SEK 7,371 M (7,434). Net sales increased organically by +2.5%. Sales of capital goods increased organically by +5.8%, and net sales in disposables declined by -1.2% year-on-year.

Organic net sales increased by +4.8% in Acute Care Therapies, primarily due to the favorable performance in Critical Care in all regions. Surgical Workflows reported organic growth of +0.4%, mainly due to the positive trend in Infection Control. Life Science, which is reported as a separate business area from the first quarter of 2018, reported lower sales compared with the strong growth reported in the year-earlier period.

Both Americas and APAC reported high organic growth, while sales in EMEA declined. Both business areas performed positively in Americas and APAC, whereas EMEA was burdened by lower organic sales in Surgical Workflows.

Gross profit amounted to SEK 3,192 M (3,398) with currency effects of approximately SEK 52 M negatively impacting profit.

Non-recurring items of SEK 197 M, in the form of write-downs of capitalized research projects and inventories, were charged to gross profit. The gross margin fell to 43.3% (45.7). Excluding nonrecurring items, gross profit amounted to SEK 3,389 M (3,398) and the gross margin to 46.0% (45.7).

EBITA 1 amounted to SEK 1,111 M (1,689) with currency effects of approximately SEK 25 M positively impacting profit. Operating expenses, excluding restructuring, integration and acquisition expenses, totaled SEK 2,222 M (1,875) compared with the preceding year. The main reason for the increase was periodization effects of SEK 226 M affecting comparability for intra-Group invoicing to discontinued operations (Arjo). In addition, earnings were charged with a non-recurring item of SEK 69 M for costs related to the ongoing investigation in Brazil, as previously announced. Excluding non-recurring items and periodization effects, EBITA 1 amounted to SEK 1,377M (1,484) and the EBITA 1 margin to 18.7% (20.0).

The quarter was charged with acquisition, restructuring and integration costs totaling SEK 125 M (215), mainly related to cost adjustments following the distribution of Arjo. This includes measures for relocating administrative support to the Group's shared service center.

Net financial items amounted to SEK -127 M (-127). Profit after financial items declined to SEK 718 M (1,181). The Group reported tax revenue of SEK +242 M (-309) in the quarter because of a decrease in the corporate tax rate in the US, which resulted in the revaluation of deferred tax liabilities. Net profit for the quarter, in continuing operations, amounted to SEK 960 M (872).

January-December 2017

The increased organic net sales in the fourth quarter contributed to growth of +1.3% for the full-year. The gross profit increased year-on-year. EBITA 1 declined compared with 2016, primarily as a result of higher expenses in sales, quality and product development and Group-wide expenses that were previously charged to discontinued operations. Acquisition, restructuring and integration costs amounted to SEK 763 M (1,172). Currency effects had a positive impact of SEK +254 M on gross profit and SEK +217 M on EBITA 1.

Net sales regions, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	2,540	2,574	5.1%	9,039	8,889	1.5%
APAC	1,862	1,814	6.6%	4,684	4,562	2.9%
EMEA	2,969	3,046	-2.0%	8,772	8,719	0.2%
Total	7,371	7,434	2.5%	22,495	22,170	1.3%

Net sales per business area

Cash flow and financial position

Cash flow from operating activities amounted to SEK 1,080 M (1,783) for the quarter, corresponding to a cash conversion of 70.5% (80.4). The lower earnings and negative development in working capital are the main reasons behind the reduced cash conversion. Net investments amounted to SEK -467 M (-448). The Group's cash and cash equivalents at the end of the period amounted to SEK 1,526 M (1,680) and net interest-bearing debt decreased in the amount of SEK 10,597 M to SEK 12,792 M (23,389) at the end of the quarter as a result of the completed distribution of Arjo and rights issue. The equity/assets ratio was 47.0% (37.9) and net debt/equity ratio 0.65 (1.12). Net interest-bearing debt in relation to adjusted EBITDA amounted to 3.07 (3.88).

Research and development

Getinge's research and development costs for the quarter amounted to SEK 294 M (317), corresponding to 4.0% (4.3) of the Group's net sales. Of this figure, SEK 134 M (159) was capitalized, corresponding to 1.8% (2.1) of the Group's net sales.

Update regarding Consent Decree with the FDA

Background

As previously announced, a US federal judge approved the terms of a Consent Decree between Getinge's former Medical Systems business area (corresponding to Acute Care Therapies today) and the FDA on February 3, 2015. The Consent Decree established a framework that provides assurances to the FDA that Getinge will complete the improvements to strengthen the quality management system. The Consent Decree originally encompassed four entities: Hudson (New Hampshire, USA), Wayne (New Jersey, USA), Rastatt (Germany) and Hechingen (Germany). The operations in Hudson were relocated to Merrimack in New Hampshire, USA, in 2017.

Under the terms of the Consent Decree, ongoing third-party inspections are carried out at the production units encompassed by the Decree. Improvement plans for the necessary corrections have been prepared. The plans are continuously updated to ensure that the right priorities are made and that shortcomings are correctly addressed. The remediation plan for Hechingen was extensively revised during the second quarter of 2017.

Progress during the fourth quarter of 2017

The remediation program continued at all production units concerned during the fourth quarter. The production units in the US are developing according to plan. Work at Hechingen, where the situation is more complex, is proceeding in accordance with the plan revised in the second quarter of 2017. In 2017, SEK 296 M of the provision had been utilized for remediation measures, of which SEK 84 M in the fourth quarter. The unutilized provision totaled SEK 556 M at the end of the quarter.

Other key events during the quarter

Distribution and listing of Arjo (formerly Patient & Post-Acute Care)

An Extraordinary General Meeting held on December 4 resolved to distribute Arjo to Getinge's shareholders and list the operations on Nasdaq Stockholm. The purpose of dividing the Group into two operations, Getinge and Arjo, was to give each company the best conditions for developing and realizing their potential.

The record date for distribution was Friday, December 8 and the final day of trading in Getinge's shares including the right to distribution of shares in Arjo was Wednesday, December 6. The shares of series B in Arjo have been traded on Nasdaq Stockholm from Tuesday, December 12.

In connection with the dividend, Getinge's earnings were recompensated with SEK 127 M for accumulated translation differences in equity that were reclassified to profit and loss and are recognized under the item "Profit from discontinued operations." Including transaction costs, the Group's cash and cash equivalents fell by SEK 623 M due to the distribution.

Product launches and other key events in the business areas

Acute Care Therapies

In the quarter, Getinge launched an updated version of the Heater Unit, HU-35, to the EEA-market (European Economic Area) where CE-marking is needed. The HU-35 is a part of the Cardiopulmonary category, and is an important complement to the highly attractive Extracorporeal Life Support (ECLS) market offering. The relaunch is expected to further strengthen Getinge's dominant position in this market segment.

Increased production efficiency significantly improved the chest drain product supply to the market. The vascular graft manufacturing is recovering following backorders and supply chain challenges encountered earlier in the year 2017. Furthermore, growth was noted in biosurgery sales due to external factors impacting the competitor supply. However, endovascular sales continued to decline due to the increased competition in the US market since beginning of 2017.

Surgical Workflows

During the quarter, Getinge announced a strategic partnership with Verb Surgical Inc. to develop digital surgery solutions. In this partnership, Getinge and Verb will together explore and develop a next generation surgical platform by combining Getinge's deep knowledge in instrument reprocessing, OR equipment and IT solutions for healthcare with Verb's expertise in robotics, advanced instrumentation, enhanced visualization, connectivity, data analytics and artificial intelligence.

The latest version of the Cart Washer Disinfector Getinge 9100E was released in the quarter. The new version combines good design and smart solutions to address real-world efficiency challenges, and can be used to clean items large or small. Re-use tanks in the 9100E retain heated water between wash cycles. This reduces the need for energy and detergent in subsequent cycles, improving environmental efficiency and reducing process times. The increased throughput and reduced operating costs ensure a good return on investment.

Getinge released its latest version of the connected solution Getinge Online, the enabler of Getinge Services to ensure highest performance and availability of Getinge equipment and access to valuable information via a personal web portal. In this latest release, an optimized mobile interface, as well as new languages and support for new equipment are added, along with security feature enhancements.

As a pioneer in the design and installation of Hybrid ORs, Getinge offers solutions with a full range of products to equip these multi-disciplinary spaces. A historic milestone was reached in the quarter, by installing our 1000th Hybrid Operating Room (ORs). The Hybrid OR allows clinicians to scan, diagnose and treat in a single location, reducing delays, improving patient safety, and ultimately reducing costs. Many different procedures – cardiovascular surgery, neurosurgery, oncology, orthopedic surgeries, urology and traumatology – can benefit from real-time diagnostic imaging.

Outlook 2018

• Organic sales growth is expected to be slightly positive in 2018.
• Currency transaction effects are expected to have a negative impact of approximately SEK 100 M on the Group's 2018 EBIT.

Acute Care Therapies

The order intake for Acute Care Therapies increased organically by +3.8% year-on-year. Looking at the product segments, the performance of Critical Care was particularly robust, especially in ventilators. EMEA performed strongly due to high sales in Critical Care, while the trend in Americas was slightly positive. APAC reported a lower order intake, mainly related to the weak performance in Japan.

Order intake regions, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	1,633	1,736	1.1%	6,234	6,200	0.4%
APAC	665	747	-6.2%	2,191	2,205	-0.6%
EMEA	1,156	1,009	15.7%	3,958	3,654	7.6%
Total	3,454	3,492	3.8%	12,383	12,059	2.4%

Net sales and results

Net sales increased organically by +4.8% in the fourth quarter, primarily attributable the healthy performance in Critical Care. All regions reported growth as a result of the high order intake in the preceding quarter.

Net sales, regions, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	1,706	1,700	7.4%	6,263	6,087	2.7%
APAC	763	764	4.2%	2,227	2,105	5.9%
EMEA	1,192	1,185	1.3%	3,711	3,612	2.2%
Total	3,661	3,649	4.8%	12,201	11,804	3.1%

Gross profit amounting to SEK 1,894 M (1,990), was adversely affected by non-recurring items of SEK 139 M, in the fo rm of write-downs of capitalized research projects and inventories. Excluding non-recurring items, the gross margin was 55.5% (54.5).

EBITA 1 amounted to SEK 639 M (923) and the EBITA 1 margin to 17.5% (25.3). The lower earnings were primarily the result of higher expenses for quality and product development. In addition, earnings were charged with a non-recurring item of SEK 69 M for costs related to the ongoing investigation in Brazil, as previously announced. The amount is based on an initial assessment based on initial contact with Brazilian authorities. Excluding non-recurring items, EBITA 1 amounted to SEK 847 M (923) and the EBITA 1 margin to 23.1% (25.3).

Currency effects had a negative impact of SEK -70 M on gross profit and a negative SEK -19 M on EBITA 1. The quarter was charged with restructuring and integration costs totaling SEK 60 M (64).

Income statement in brief	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales, SEK M	3,661	3,649	12,201	11,804
Gross profit, SEK M	1,894	1,990	6,787	6,552
Gross margin %	51.7	54.5	55.6	55.5
Operating expenses, SEK M	-1,390	-1,221	-5,049	-4,793
EBITA 1, SEK M	639	923	2,292	2,326
EBITA 1 margin, %	17.5	25.3	18.8	19.7
Acquisition expenses, SEK M	-1	-1	-3	-8
Restructuring and integration costs, SEK M	-60	-64	-604	-751
Operating profit (EBIT), SEK M	443	704	1,131	1,000
EBIT margin, %	12.1	19.3	9.3	8.5

Net sales per product segment

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.

Surgical Workflows

Net sales per product segment

Surgical Workplaces Infection Control Integrated Workflow solutions Arjo products Life Science

Surgical Workflows 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 Life Science segment is included in this business area for this quarter, but will be reported as a separate business area in the first interim report for 2018.

Order intake

The order intake for Surgical Workflows rose organically by +9.9% during the quarter, mainly attributable to the positive trend in Infection Control and the future business area Life Science (a new business area from January 2018), which posted growth of +21.2%. This was primarily the result of a number of large orders in Isolation, Sterile Transfer and Sterilization from pharmaceutical companies in EMEA.

Order intake region, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	733	772	1.7%	2,915	2,813	3.2%
APAC	837	799	9.7%	2,553	2,488	3.1%
EMEA	1,600	1,410	14.5%	5,377	5,243	2.2%
Total	3,170	2,981	9.9%	10,845	10,544	2.7%

Net sales and results

Surgical Workflows reported organic growth of +0.4%, mainly due to the positive trend in Infection Control. Life Science reported lower sales compared with the strong growth reported in the yearearlier period. APAC posted the strongest performance of the regions, with solid growth in Infection Control and Life Science compared with the preceding year.

Net sales regions, SEK M	Quarter 4 2017	Quarter 4 2016	Organic change	Jan-Dec 2017	Jan-Dec 2016	Organic change
Americas	834	874	0.6%	2,776	2,802	-1.3%
APAC	1,099	1,050	8.1%	2,457	2,457	0.4%
EMEA	1,777	1,861	-4.1%	5,061	5,107	-1.2%
Total	3,710	3,785	0.4%	10,294	10,366	-0.8%

Gross profit amounting to SEK 1,298 M (1,408), was adversely affected by non-recurring items of SEK 58 M, in the form of write-downs of inventories and capitalized research projects. Excluding nonrecurring items, the gross margin was 36.6% (37.2).

EBITA 1 amounted to SEK 518 M (831) and the EBITA 1 margin to 14.0% (22.0). The increase in operating expenses was primarily due to periodization effects of SEK 226 M affecting comparability for intra-Group invoicing to discontinued operations (Arjo). Excluding non-recurring items, EBITA 1 amounted to SEK 576 M (626) and the EBITA 1 margin to 15.5% (16.5).

Currency effects had a positive impact of SEK +18 M on gross profit and SEK +44 M on EBITA 1. The quarter was charged with restructuring and integration costs totaling SEK 61 M (129).

Income statement in brief	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Net sales, SEK M	3,710	3,785	10,294	10,366
Gross profit, SEK M	1,298	1,408	3,815	3,846
Gross margin, %	35.0	37.2	37.1	37.1
Operating expenses, SEK M	-786	-589	-3,091	-2,703
EBITA 1, SEK M	518	831	756	1,173
EBITA 1 margin, %	14.0	22.0	7.3	11.3
Acquisition expenses, SEK M	-	0	-	-4
Restructuring and
integration costs, SEK M	-61	-129	-149	-254
Operating profit (EBIT), SEK M	451	690	575	885
EBIT margin, %	12.2	18.2	5.6	8.5

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 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 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.

Research and development

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

Product liability and damage claims

Healthcare suppliers run a risk, like other players in the healthcare industry, of being subject to claims relating to product liability and other legal claims. Such claims can involve large amounts and significant legal expenses. Getinge cannot provide any guarantees that its operations will not be subject to compensation claims. Getinge carries the customary indemnity and product liability insurance, but there is a risk that the protection Getinge receives through its insurance policies would be limited for reasons such as amount limits and requirements to pay deductibles.

Protection of intellectual property

Getinge is a market leader in the areas in which it operates and invests significant amounts in product development. To secure returns on these investments, the Group 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. During the third quarter, a rights issue was completed, which was guaranteed by Carl Bennet AB and where a guarantee commission was paid according to established practice. 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 – from January 2018

• Average annual organic growth in net sales: 2-4%
• Average earnings per share growth: >10%

Getinge's dividend policy is to pay dividends of 30-50% of net profit to shareholders.

Dividend

The Board of Directors and CEO propose a dividend for 2017 of SEK 1.50 (1.75*) per share, a combined total of SEK 409 M (477). The final date for trading including the right to receive dividends is April 26, 2018 and the proposed record date is April 30, 2018. Euroclear expects to distribute the dividend to shareholders on May 4, 2018.

*Adjusted for newly issued shares.

2018 Annual General Meeting

Getinge AB's Annual General Meeting will be held on April 26, 2018 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 April 26, 2018 can submit their proposal to Getinge's Board Chairman by e-mail: arenden.bolagsstamma@getinge.com, or by mail: Getinge AB, Att: Bolagsstämmoärenden, Box 8861, SE-402 72 Gothenburg, Sweden. To ensure inclusion in the notice and thus in the Annual General Meeting's agenda, proposals must be received by the company not later than March 8, 2018.

Assurance

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

Gothenburg, January 29, 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

		Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
SEK M	Note	2017	2016	2017	2016
Net sales	2	7,371	7,434	22,495	22,170
Cost of goods sold	3	-4,179	-4,036	-11,893	-11,772
Gross profit		3,192	3,398	10,602	10,398
Selling expenses	3	-1,265	-1,299	-4,980	-4,858
Administrative expenses	3	-698	-452	-2,650	-2,343
Research and development costs	4	-160	-158	-594	-538
Acquisition expenses		-1	-1	-4	-14
Restructuring and integration costs		-124	-214	-759	-1,158
Other operating income and expenses		-99	34	-122	19
Operating profit (EBIT)	2.3	845	1,308	1,493	1,506
Net financial items	2	-127	-127	-560	-527
Profit after financial items	2	718	1,181	933	979
Taxes		242	-309	184	-256
Net profit for the period from continuing operations		960	872	1,117	723
Net profit for the period from discontinued operations 1	10	94	80	280	490
Net profit for the period from continuing and discontinued operations		1,054	952	1,397	1,213
Attributable to:
Parent Company shareholders
Profit from continuing operations		953	863	1,096	698
Profit from discontinued operations		94	80	280	490
Profit from continuing and discontinued operations		1,047	943	1,376	1,188
Non-controlling interests
Profit from continuing operations		7	9	21	25
Profit from discontinued operations		-	-	-	-
Profit from continuing and discontinued operations		7	9	21	25
Earnings per share, SEK 2		3.84	3.90	5.49	4.91
Of which, continuing operations, SEK		3.50	3.57	4.37	2.89
Of which, discontinued operations, SEK		0.34	0.33	1.12	2.02
Weighted average number of shares for calculation of earnings per share (000s) 3		272,370	241,780	250,720	241,780

1) The shares in Arjo were distributed to Getinge's shareholders in December 2017 and in this report Arjo is recognized separately as a discontinued operation in accordance with IFRS 5. Refer to Note 1 Accounting policies and Note 10 Discontinued operations for further information.

2) Before and after dilution

3) Adjusted for bonus issue effect of the rights issue

Consolidated statement of comprehensive income

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
SEK M	2017	2016	2017	2016
Net profit for the period from continuing and discontinued operations	1,054	952	1,397	1,213
Other comprehensive income
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined-benefit pension plans	-19	-98	179	-280
Tax attributable to items that cannot be restated in profit	-78	69	-159	104
Items that can later be restated in profit for the period
Translation differences and hedging of net investments	647	183	-762	551
Cash-flow hedges	89	277	561	86
Reversal of translation differences and hedges, discontinued operations	-127	-	-127	-
Tax attributable to items that can be restated in profit	26	284	-448	326
Other comprehensive income for the period, net after tax	538	715	-756	787
Total comprehensive income for the period	1,592	1,667	641	2,000
Comprehensive income attributable to:
Parent Company shareholders	1,572	1,666	609	1,964
Non-controlling interests	20	1	32	36

Consolidated balance sheet

	December 31	December 31
SEK M Note	2017	2016
Assets
Intangible assets	23,045	32,004
Tangible assets	2,911	4,313
Financial assets	1,586	1,329
Inventories	4,879	5,431
Accounts receivable	6,067	8,159
Other current receivables	2,088	2,295
Cash and cash equivalents 6	1,526	1,680
Total assets	42,102	55,211
Equity and liabilities
Equity	19,806	20,916
Provisions for pensions, interest-bearing 6	3,081	3,368
Other interest-bearing liabilities 6	11,237	21,701
Other provisions 8	2,202	1,856
Accounts payable	2,025	2,201
Other non-interest-bearing liabilities	3,751	5,169
Total equity and liabilities	42,102	55,211

Changes in equity for the Group

		Other				Non
		capital		Retained		controlling	Total
SEK M	Share capital	provided	Reserves	earnings	Total	interests	equity
Opening balance at January 1, 2016	119	5,960	3	13,121	19,203	390	19,593
Total comprehensive income for the period	-	-	952	1,012	1,964	36	2,000
Share-based remuneration	-	-	-	8	8	-	8
Dividend	-	-	-	- 667	- 667	- 18	- 685
Closing balance at December 31, 2016	119	5,960	955	13,474	20,508	408	20,916
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 issue1	17	4,264	-	-	4,281	-	4,281
Distribution of Arjo 1	-	-	-	-5,533	-5,533	-	-5,533
Closing balance at December 31, 2017	136	10,224	168	8,856	19,384	422	19,806

1) Including transaction costs

Consolidated cash-flow statement

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
SEK M Operating activities	2017	2016	2017	2016
Operating profit (EBIT) for continuing operations	845	1,308	1,493	1,506
Operating profit (EBIT) for discontinued operations	-21	141	294	781
Add-back of amortization, depreciation and write-downs	707	768	2,609	2,703
Other non-cash items	20	24	51	85
Add-back of restructuring and integration costs 1	154	181	887	1,015
Paid restructuring and integration costs	- 156	- 249	- 539	- 872
Financial items	- 169	- 157	- 663	- 637
Taxes paid	- 43	69	- 479	- 332
Cash flow before changes in working capital	1,337	2,085	3,653	4,249
Changes in working capital
Inventories	402	499	- 910	- 234
Current receivables	-1,644	-1,858	-653	- 252
Current liabilities	985	1,057	673	- 92
Cash flow from operating activities	1,080	1,783	2,763	3,671
Investing activities
Acquired operations	-	2	- 81	- 212
Net investments	- 467	- 448	- 1,633	- 1,585
Cash flow from investing activities	- 467	- 446	-1,714	- 1,797
Financing activities
Change in interest-bearing liabilities	18	- 1,256	- 4,276	- 1,106
Change in interest-bearing receivables	- 34	- 40	- 56	42
Distribution of Arjo	-623	-	-623	-
Dividend paid	- 3	- 4	- 495	- 685
Rights issue	-	-	4,281	-
Cash flow from financing activities	- 642	- 1,300	-1,169	- 1,749
Cash flow for the period	-29	37	- 120	125
Cash and cash equivalents at the beginning of the period	1,521	1,812	1,680	1,468
Translation differences	34	-169	- 34	87
Cash and cash equivalents at the end of the period	1,526	1,680	1,526	1,680

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 2016 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 operations in 2016.

New Accounting standards

The Group has assessed the effects of the implementation of IFRS 9 Financial instruments and IFRS 15 Revenue from Contracts with Customers and does not believe that there are any material differences between these new standards, which came into force on January 1, 2018, and the Group's current accounting policies as regards the recognition and measurement of financial instruments, impairment of doubtful receivables and revenue recognition. IFRS 9 will be applied retrospectively from 1 January 2018. IFRS 15 will also be applied from 1 January 2018 but using the full retrospective approach, which means that the cumulative impact will be recognized in equity.

The Group is yet to assess 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 62 in the 2016 Annual Report.

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 10. Only assets and liabilities remaining in the Group after the distribution of Arjo are recognized in the balance sheet.

Note 2 Segment overview

Net sales, SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Acute Care Therapies	3,661	3,649	12,201	11,804
Surgical Workflows	3,710	3,785	10,294	10,366
Total	7,371	7,434	22,495	22,170
	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
Operating profit (EBIT), SEK M	2017	2016	2017	2016
Acute Care Therapies	443	704	1,131	1,000
Surgical Workflows	451	690	575	885
Group functions*	-49	-86	-213	-379
Operating profit (EBIT)	845	1,308	1,493	1,506
Net financial items	-127	-127	-560	-527
Profit after financial items	718	1,181	933	979

* Group functions refer mainly to central functions such as finance, communication and HR.

Note 3 Depreciation and write-downs

SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Intangible assets in acquired companies	-141	-166	-586	-597
Intangible assets	-343	-252	-943	-927
Tangible assets	-119	-90	-437	-424
Total	-603	-508	-1,966	-1,948
of which write-downs	-150	-52	-203	-210

Note 4 Capitalized development costs

SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Research and development costs, gross	-294	-317	-1,123	-1,064
Capitalized development costs	134	159	529	526
Research and development costs, net	-160	-158	-594	-538

Note 5 Quarterly results

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
SEK M	2016	2016	2016	2016	2017	2017	2017	2017
Net sales	4,516	5,133	5,087	7,434	4,811	5,369	4,944	7,371
Cost of goods sold	-2,392	-2,740	-2,604	-4,036	-2,433	-2,785	-2,496	-4,179
Gross profit	2,124	2,393	2,483	3,398	2,378	2,584	2,448	3,192
Operating expenses	-2,088	-2,069	-2,645	-2,090	-2,076	-2,542	-2,144	-2,347
Operating profit (EBIT)	36	324	-162	1,308	302	42	304	845
Net financial items	-132	-136	-132	-127	-143	-158	-132	-127
Profit after financial items	-96	188	-294	1,181	159	-116	172	718
Taxes	26	-51	78	-309	-42	31	-47	242
Net profit for the period from continuing	-70	137	-216	872	117	-85	125	960
operations

Note 6 Consolidated net interest-bearing debt

SEK M	December 31 2017	December 31 2016
Other interest-bearing liabilities	11,237	21,701
Provisions for pensions, interest-bearing	3,081	3,368
Interest-bearing liabilities	14,318	25,069
Less cash and cash equivalents	-1,526	- 1,680
Net interest-bearing debt	12,792	23,389

Note 7 Key figures for the Group

Financial and operative key figures

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
Key figures based on Getinge's financial targets	2017	2016	2017	2016
Organic growth in net sales, %	2.5	-0.4	1.3	-0.7
EBITA 1 growth, %	-34.2	2.5	-13.2	-1.6
Cash conversion 1 , %	70.5	80.4	62.9	73.6
Return on equity 1 , %			6.6	6.0
Other operative and financial key figures
Organic growth in order intake, %	6.6	0.8	2.5	0.5
Gross margin, %	43.3	45.7	47.1	46.9
Selling expenses, % of net sales	17.2	17.5	22.1	21.9
Administrative expenses, % of net sales	9.5	6.1	11.8	10.6
Research and development costs, % of net sales	4.0	4.3	5.0	4.8
Operating margin, %	11.5	17.6	6.6	6.8
EBITDA, SEK M	1,448	1,816	3,459	3,454
Earnings per share 1,3 , SEK	3.84	3.90	5.49	4.91
Number of shares 4 , thousands	272,370	241,780	250,720	241,780
Number of shares at the end of the period 4 ,
thousands	272,370	241,780	272,370	241,780
Interest-coverage ratio, multiple			8.3	9.0
Cont. next page

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
Cont.	2017	2016	2017	2016
Operating capital, SEK M			32,598	44,305
Return on operating capital 1 , %			6.7	8.3
Net debt/equity ratio, multiple					0.65	1.12
Net debt/EBITDA1, 2 , multiple			3.07	3.88
Equity/assets ratio, %			47.0	37.9
Equity per share 1 , SEK			72.72	86.51
Number of employees			10,306	9,959

1) Pertains to the entire Group, including discontinued operations which includes Arjo until the distribution date in December 2017.

2) EBITDA before acquisition, restructuring and integration costs, rolling 12 months

3) Before and after dilution

4) Adjusted for bonus issue effect of the rights issue

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.

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
EBITA 1 for continuing operations, SEK M	2017	2016	2017	2016
Operating profit (EBIT)	845	1,308	1,493	1,506
Add-back of depreciation and write-down of acquired intangible assets	141	166	586	597
Add-back of acquisition, restructuring and integration costs	125	215	763	1,172
EBITA 1	1,111	1,689	2,842	3,275

EBITA 2 for continuing operations, SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Operating profit (EBIT)	845	1,308	1,493	1,506
Add-back of depreciation and write-down of
acquired intangible assets	141	166	586	597
EBITA 2	986	1,474	2,079	2,103

Cash conversion	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Cash flow from operating
activities, SEK M	1,080	1,783	2,763	3,671
Operating profit (EBIT) from continuing and discontinued operations	824	1,449	1,787	2,287
Add-back of depreciation and write-downs in intangible and tangible assets (from continuing
and discontinued operations)	707	768	2,609	2,703
EBITDA from continuing and discontinued
operations	1,531	2,217	4,396	4,990
Cash conversion, %	70.5	80.4	62.9	73.6

Net debt/equity ratio	December 31 2017	December 31 2016
Interest-bearing net debt, SEK M	12,792	23,389
Equity, SEK M	19,806	20,916
Net debt/equity ratio, multiple	0.65	1.12

Note 8 Provision FDA

SEK M	December 31 2017	December 31 2016
Provision at beginning of period	371	193
Used amount	- 296	- 235
Provisions	488	400
Translation differences	- 7	13
Provision at close of period	556	371

Getinge committed SEK 995 M in 2014 related to the remediation program for strengthening the former Medical Systems' quality management system, and in 2016 SEK 400 M was committed for the same purpose. An additional provision of SEK 488 M was made in the second quarter of 2017 and the total cost of the remediation program thus amounted to SEK 1,983 M, of which SEK 100 M is fines.

Note 9 Acquisitions

Carus HMS GmbH

During the second quarter, Getinge acquired the German IT company Carus to strengthen its offering in Integrated Workflow Solutions. The company has about 30 employees and forecasted sales of SEK 20 M for 2017. The total purchase consideration amounted to SEK 19 M.

Simm Company and Surgeon Aid

In the second quarter, Getinge completed the acquisition of the operations of the Thai company Simm Company and Surgeon Aids. The operation has approximately 60 employees and generates sales of about SEK 75 M. The total purchase consideration amounted to SEK 40 M.

Note 10 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.

	Quarter 4	Quarter 4	Jan-Dec	Jan-Dec
Income statement for discontinued operations, SEK M	2017	2016	2017	2016
Net sales	1,309	2,174	6,929	7,808
Cost of goods sold	-770	-1,185	-3,863	-4,366
Gross profit	539	989	3,066	3,442
Selling expenses	-303	-322	-1,425	-1,392
Administrative expenses	-217	-416	-992	-1,016
Research and development costs	-27	-45	-118	-133
Acquisition expenses	-	-2	-	-7
Restructuring and integration costs	-31	-107	-250	-155
Other operating income and expenses	18	44	13	42
Operating profit (EBIT)	-21	141	294	781
Net financial items	-23	-30	-84	-110
Profit after financial items	-44	111	210	671
Taxes	11	-31	-57	-181
Net profit/loss for the period from the operations	-33	80	153	490
Profit from translation differences and hedges	127	-	127	-
Net profit for the period	94	80	280	490

Cash flow from discontinued operations, SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Cash flow from operating activities	-128	196	269	919
Cash flow from investing activities	-27	-88	-320	-526
Cash flow from financing activities	-3	-3	4	-13
Cash flow for the period	-158	105	-47	380

Assets and liabilities in discontinued operations on the date of distribution of Arjo to shareholders, SEK M
Intangible assets	6,674
Tangible assets	1,147
Financial assets	486
Inventories	1,167
Accounts receivable	1,824
Other current receivables	555
Cash and cash equivalents	447
Provisions for pensions	-25
Other interest-bearing liabilities	-5,051
Other provisions	-283
Accounts payable	-529
Other non-interest-bearing liabilities	-1,073
Total net assets in discontinued operations	5,339
Distribution of operations and associated net assets	-5,339
Transaction costs related to distribution of operations*	-176
Cash and cash equivalents in discontinued operations	-447
Impact on the Group's cash and cash equivalents	-623

*Excluding non-cash tax items.

Parent Company financial statements

Parent Company's income statement

SEK M	Quarter 4 2017	Quarter 4 2016	Jan-Dec 2017	Jan-Dec 2016
Administrative expenses	-19	261	-251	-164
Operating result	-19	261	-251	-164
Result from participations in Group companies	-376	2,373	2,439	2,514
Interest income and other similar income	-298	43	1,614	164
Interest expenses and other similar expenses	-133	-1,098	-574	-2,370
Profit/loss after financial items*	-826	1,579	3,228	144
Taxes	194	84	-99	78
Net profit for the period	-632	1,663	3,129	222

* 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 at the closing day rate.

Parent Company's balance sheet

	December 31	December 31
SEK M	2017	2016
Assets
Intangible assets	86	104
Tangible assets	6	3
Participations in Group companies	25,455	25,024
Deferred tax assets	189	222
Long-term receivables	53	-
Receivables from Group companies	953	7,160
Current receivables	191	140
Total assets	26,933	32,653
Shareholders' equity and liabilities
Shareholders' equity	12,584	9,560
Long-term liabilities	4,257	15,851
Long-term liabilities to Group companies	659	-
Current liabilities to Group companies	2,990	1,351
Current liabilities	6,443	5,891
Total shareholders' equity and liabilities	26,933	32,653

Definitions

Financial terms

Operating capital. Total assets with a reversal of cash and cash equivalents, other provisions, accounts payable and other non-interest-bearing liabilities.

Return on operating capital. Rolling 12 months' operating profit with add-back of acquisition, restructuring and integration costs in relation to average operating capital.

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

Cash conversion. Cash flow from operating activities in relation to EBITDA.

EBITA 1. Operating profit before amortization and write-down of intangible assets identified in conjunction with corporate acquisitions with add-back of acquisition, restructuring and integration costs.

EBITA 2. Operating profit before amortization and write-down of intangible assets identified in conjunction with corporate acquisitions.

EBITA 1 margin. EBITA 1 in relation to net sales.

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

EBITDA margin. EBITDA in relation to net sales.

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

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

Organic change. A financial change adjusted for currency, acquisitions and divestments during the period compared to the same period last year.

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

Interest-coverage ratio. Rolling 12 months' operating profit before amortization, depreciation and write-downs, with addback of acquisition, restructuring and integration costs in relation to rolling 12 months' net interest.

Operating margin. Operating profit in relation to net sales.

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

Recurring revenue. Revenues from disposables, service, spare parts and similar items.

Medical terms

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 catheters.

Artificial grafts. Artificial vascular implants.

Low temperature sterilization. A technique for sterilizing instruments used in minimally invasive surgery, a type of instrument that is extremely sensitive to the high temperatures and pressure of a steam sterilization process.

Stent. A tube for endovascular widening of blood vessels.

Sterilizer. A type of pressure-cooker for sterilization.

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.

DACH. Germany, Austria and Switzerland.

EMEA. Europe, Middle East and Africa.

Teleconference

Teleconference with President & CEO Mattias Perjos and CFO Lars Sandström on January 29, 2018 at 10:00-11:00 a.m. CET. 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: 9815129

A presentation will be held during the telephone conference. To access the presentation, please use this link: https://slideassist.webcasts.com/starthere.jsp?ei=1176385

Alternatively, use the following link to download the presentation: https://www.getinge.com/sv/om-oss/investerare/rapporter-presentationer

A recording of the teleconference will be available for 90 days via the following link: https://slideassist.webcasts.com/starthere.jsp?ei=1176385

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 financial information will be published in 2018:

March 2018:	2017 Annual Report
April 26, 2018:	Interim report January–March
July 16, 2018:	Interim report January–June
October 18, 2018:	Interim report January–September

Contact

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

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

This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on January 29, 2018 at 8:00 a.m. CET.

Getinge AB (publ)

Lindholmspiren 7 SE-417 56 Gothenburg Sweden

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