Getinge

Quarterly Report • Jul 14, 2016

Interim Report January – June 2016

SECOND QUARTER OF 2016 IN BRIEF

• Order intake: -0.7% to SEK 7,460 M (7,516). The order intake grew organically by 3.0%.
• Net sales: -3.5% to SEK 6,927 M (7,181). Net sales fell organically by 0.3%.
• Gross margin: 45.7% (46.4). Affected negatively by currencies.
• EBITA*: +10.2% to SEK 788 M (715).
• Restructuring and integration costs: SEK 133 M (86).
• Profit before tax: +28.0% to SEK 311 M (243).
• Earnings per share: SEK 0.93 (0.71).
• Good cost control: Administrative and selling expenses declined by 8.4%.
• New President of Acute Care Therapies: Jens Viebke
• FDA update: Getinge is still awaiting a decision by the FDA regarding the remediation plan in Hechingen.
• Strengthened customer offering: Launches include a new mobile operating table.

JANUARY – JUNE 2016 IN BRIEF

• Order intake: -2.2% to SEK 14,384 M (14,708). The order intake grew organically by 0.5%.
• Net sales: -4.2% to SEK 13,304 M (13,893). Net sales fell organically by 1.7%.
• Gross margin: 46.4% (46.6).
• EBITA*: -1.7% to SEK 1,408 M (1,432).
• Restructuring and integration costs: SEK 260 M (270).
• Profit before tax: +20.6% to SEK 468 M (388).
• Earnings per share: SEK 1.39 (1.09).
• The transformation and efficiency-enhancement program was initiated and a Group-wide sales organization was established.

FINANCIAL SUMMARY

	Q2	Q2		Jan-Jun	Jan-Jun
MSEK	2016	2015	Change %	2016	2015	Change %	Rolling 12M	FY 2015
Order intake	7 460	7 516	-0.7%	14 384	14 708	-2.2%	30 107	30 431
Net sales	6 927	7 181	-3.5%	13 304	13 893	-4.2%	29 646	30 235
Gross Profit	3 167	3 331	-4.9%	6 178	6 473	-4.6%	13 868	14 163
Gross margin	45.7%	46.4%	-0.7%	46.4%	46.6%	-0.2%	46.8%	46.8%
EBITA*	788	715	10.2%	1 408	1 432	-1.7%	4 155	4 179
EBITA margin*	11.4%	10.0%	1.4%	10.6%	10.3%	0.3%	14.0%	13.8%
Operating profit	473	428	10.5%	789	762	3.5%	2 756	2 729
Profit before tax	311	243	28.0%	468	388	20.6%	2 077	1 997
Net profit	227	177	28.2%	342	283	20.8%	1 516	1 457
Earnings per share	0.93	0.71	31.0%	1.39	1.09	27.5%	6.13	5.83
Cash flow from operations	463	598	-22.6%	1 163	1 252	-7.1%	3 369	3 458

* before restructuring, acquisition and integration cost

COMMENTS BY THE CEO

High level of activity continues to generate results

A sustained high level of activity dominated the second quarter of the year. We see favorable results in our transformation journey with our Big 5 efficiency-enhancement program delivering according to plan and contributing to the positive trend in EBITA for the quarter.

I am pleased to see a positive order intake in the second quarter, with a 3.0% organic growth. The order growth was attributable to the Acute Care Therapies and Surgical Workflows Business Category Units. Demand levels were mixed geographically, with both the APAC and EMEA regions performing well, while the Americas declined slightly. The net sales reflect the weak order intake in the first quarter and, in addition, some supply constraints in Hechingen in connection to our remediation activities.

Gross profit was negatively impacted by exchange-rate effects and the gross margin amounted to 45.7% (46.4). We exercised good cost control during the quarter and administrative and selling expenses fell by 8,4 %. EBITA improved to SEK 788 M, up 10.2%, confirming that our initiatives are generating the desired effects.

Our focus on quality has been high in the quarter and the ongoing work on harmonizing and establishing global quality processes in the Group continued. Extensive efforts were made in Hechingen during the quarter based on the improvement plan developed and communicated in the first quarter. We are still waiting for the FDA's response on this plan and, accordingly, we cannot yet specify the financial consequences related to Hechingen.

We continue to develop our customer offering in the growing segment for the treatment of bariatric patients. In June, we acquired 1st Call Mobility, the UK market leader in equipment for treating bariatric patients. Additionally we have launched a new medical bed, the Citadel Plus Bariatric Care System and the Maxi Sky 2 Plus Ceiling Lift System specifically developed for bariatric patients. We also strengthened our operating room portfolio with the launch of the most recent generation of mobile operating tables, MEERA, which has already won the renowned iF DESIGN AWARD 2016, and the new VOLISTA Access surgical light, representing the latest in lighting technology.

Our continued focus on innovation will contribute towards a strong pipeline of product launches in the second half of 2016 and 2017.

We have received a number of questions regarding Brexit in recent weeks, regarding how it affects the Getinge Group. It is currently too early to speculate on the long-term effects, although we are closely monitoring developments. The UK is a key market for us and our aim is to continue to strengthen our position in that market.

The intensive work in the first half of the year are beginning to show results and confirm that we are on the right path in our ongoing journey of change, which will last for three to four years. We have delivered a great deal in a short span of time, but we have much more work left to be done before we see the full effects of our transformation.

Alex Myers, CEO & President

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 new reportable 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

Second quarter of 2016

The Group's order intake for the second quarter amounted to SEK 7,460 M (7,516), representing a positive organic change of 3.0% (-0.7). The positive performance was mainly due to the higher order intake for the Acute Care Therapies Business Category Unit.

Acute Care Therapies reported an increased order intake for the quarter, the organic change was 8.7% and the trend positive for all product segments. The organic order intake rose 3.3% in Surgical Workflows, primarily as a result of the positive trend in the Life Science, Health Care and Surgical Workplaces segments. The order intake for Patient & Post-Acute Care declined 5.6%, mainly due to lower order intake for the hygiene systems and hospital beds product groups within the Capital goods segment.

The organic order intake fell 1.2% in the Americas region, primarily as a result of the decline in the US and South America. The EMEA region performed positively and the order intake improved organically by 4.3%. The order intake in the APAC region increased organically by 9.6%, mainly due to the positive performance in the emerging markets of India and China.

January-June 2016

The order intake for the first quarter that was slightly lower than expected was followed by a positive trend in the second quarter. In total, this means that the organic order intake for the first six months of the year increased by 0.5%.

Order intake regions, MSEK	Q2 2016	Q2 2016*	Q2 2015	Change %*	Jan-Jun 2016	Jan-Jun 2016*	Jan-Jun 2015	Change %*
EMEA	3 222	3 338	3 200	4.3%	6 169	6 369	6 364	0.1%
Americas	2 895	3 012	3 049	-1.2%	5 804	5 931	5 909	0.4%
APAC	1 343	1 389	1 267	9.6%	2 411	2 484	2 435	2.0%
Group total	7 460	7 739	7 516	3.0%	14 384	14 784	14 708	0.5%

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Second quarter of 2016

The Group's net sales for the quarter amounted to SEK 6,927 M (7,181), corresponding to an organic change of -0.3% (-0.4).

Sales for Surgical Workflows and Acute Care Therapies increased organically by 2.4% and 0.8%, respectively. Organic sales for Patient & Post-Acute Care fell by 5.3%.

Organic sales in the EMEA region were in line with the preceding year, whereas sales in the Americas region declined 1.1% organically. However, sales for the APAC region also rose during the quarter and the organic change was 1.6%.

Gross profit was negatively impacted by exchange-rate effects and the gross margin fell to 45.7% (46.4). Administrative and selling expenses fell by 8.4%, mainly as a result of the Group's ongoing efficiency-enhancement program, Big 5. EBITA before restructuring, acquisition and integration costs amounted to SEK 788 M (715) for the second quarter. Exchangerate effects had an adverse effect of approximately SEK 52 M on earnings compared with the previous year. Forward cover contributed to a SEK 57 M decline in profit compared with market rates.

The quarter was charged with restructuring costs of SEK 133 M (86) that mainly pertained to activities related to the transformation program that is progressing according to plan. Net financial items improved to an expense of SEK -162 M (-185) due to lower average interest rates on loans. Profit before tax increased to SEK 311 M (243). Net profit for the period amounted to SEK 227 M (177).

January-June 2016

Net sales were slightly weaker than anticipated during the first and second quarters of the year, which impacted profitability for the period. This was offset by good cost control and cost savings under the Group's efficiency-enhancement program, which contributed to an improvement in EBITA and operating profit.

Group income state ment in brief	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	Rolling 12M	FY 2015
Net sales, MSEK	6 927	7 181	- 3.5%	13 304	13 893	-4.2%	29 646	30 235
Adj. for x-rates, acquisi tions and divestments,
%			-0.3%			-1.7%
Gross Profit, MSEK	3 167	3 331	-4.9%	6 178	6 473	-4.6%	13 868	14 163
Gross margin, %	45.7%	46.4%	-0.7%	46.4%	46.6%	-0.2%	46.8%	46.8%
Operating costs, MSEK	-2 553	- 2 806	-9.0%	- 5 117	- 5 421	-5.6%	-10 440	- 10 744
EBITA before restruc
turing, acquisition and integration costs, MSEK	788	715	10.2%	1 408	1 432	-1.7%	4 155	4 179
EBITA margin, %	11.4%	10.0%	1.4%	10.6%	10.3%	0.3%	14.0%	13.8%
Acquisition expenses, MSEK	-8	- 11	-27.3%	- 12	- 20	-40.0%	- 25	- 33
Restructuring and integration costs, MSEK	- 133	- 86	54.7%	- 260	- 270	-3.7%	- 647	- 657
EBIT, MSEK	473	428	10.5%	789	762	3.5%	2 756	2 729
EBIT margin, %	6.8%	6.0%	0.8%	5.9%	5.5%	0.4%	9.3%	9.0%

CASH FLOW AND FINANCIAL POSITION

Operating cash flow amounted to SEK 463 M (598) for the quarter, corresponding to a cash conversion of a 44.7% (57.7). Net investments amounted to SEK 236 M (253). The Group's cash and cash equivalents at the end of the period amounted to SEK 1,845 M (1,392) and interest-bearing net debt was SEK 23,341 M (23,346). The equity/assets ratio amounted to 35.4% (35.2) and the net debt/equity ratio to 1.23 (1.24).

RESEARCH AND DEVELOPMENT

The Group's research and development costs for the quarter amounted to SEK 325 M (336), corresponding to 4.7% (4.7) of the Group's net sales. The new organizational structure is expected to positively contribute to the Group's continued research and development efforts and the Business Category Units – Surgical Workflows, Acute Care Therapies and Patient & Post-Acute Care – will create new, unique and more focused customer offerings.

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 about SEK 85-90 M. 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 local 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, certain products manufactured by Atrium were temporarily suspended while corrections were being made. Certain products currently manufactured by Atrium have been deemed medically necessary under the Consent Decree with the FDA and will continue to be made available to customers within and outside of the US.

Under the terms of the Consent Decree, ongoing third-party inspections are carried out at the production units encompassed by the Decree and, as previously announced, such an inspection was performed in Hechingen, Germany, during the fourth quarter of 2015. An improvement plan has been developed and the organization has intensely carried out activities under this plan during the first and second quarter of the year. A response from the FDA on this plan remains pending, which means that the financial consequences related to Hechingen cannot yet be specified.

These measures also led to adjustments to certain manufacturing processes aligned with regulations when conducting verification and validation of the products manufactured. The expanded verification/validation processes have resulted in a lower rate of production that, in turn, means that the Group is currently experiencing difficulties in meeting market demand for these products.

As previously announced, Getinge reserved SEK 995 M in 2014 regarding improvement measures to enhance the quality management system in Medical Systems. During the quarter, SEK 42 M was utilized to carry out improvement measures within the framework of this remediation program.

FDA 2014	MSEK
Provision, 1st quarter	799
Currency effect, 3rd quarter	21
Additional provision, 4th quarter	175
Total provision 2014	995
Completed remediation activities 2014, provision utilized	- 470
Closing balance December 31st, 2014	525
FDA 2015	MSEK
Completed remediation activities 1st quarter, provision utilized	- 105
Closing balance March 31st, 2015	420
Completed remediation activities 2nd quarter, provision utilized	- 101
Closing balance June 30th, 2015	319
Completed remediation activities 3rd quarter, provision utilized	- 47
Closing balance September 30th, 2015	272
Completed remediation activities 4th quarter, provision utilized	- 79
Closing balance December 31st, 2015	193
FDA 2016	MSEK
Completed remediation activities 1st quarter, provision utilized	- 64

Closing balance June 30th, 2016	87
Completed remediation activities 2nd quarter, provision utilized	-42
Closing balance March 31st, 2016	129
Completed remediation activities 1st quarter, provision utilized	- 64

Financial consequences of the Consent Decree with the FDA

The total financial consequences related to the Consent Decree with the US FDA, excluding the costs for the remediation program, amounted to approximately SEK 31 M for the quarter and primarily pertain to loss of revenue attributable to the products for which production was suspended while corrections are being made at Atrium's production unit in Hudson, New Hampshire

FDA – 2015	MSEK
EBITA result*	- 215
Restructuring charges	- 100
TOTAL Operating profit, December 31st 2015	- 315
FDA 1st quarter, 2016	MSEK
EBITA result*	- 35
Restructuring charges	0
Operating profit, March 31st, 2016	- 35
FDA 2nd quarter, 2016	MSEK
EBITA result*	- 31
Restructuring charges	0
Operating profit, June 30th, 2016	- 31
TOTAL Operating profit, June 30th 2016	-66

* adjusted for currency rates, acquisitions and divestments

KEY EVENTS DURING THE QUARTER

Jens Viebke new President of Acute Care Therapies

Getinge Group has appointed Jens Viebke as the new President of the Acute Care Therapies Business Category Unit. Jens will be a member of Getinge Group management and succeeds Heinz Jacqui who is leaving his current position after four years with the Group.

Jens Viebke most recently served as Chief Technology Officer at Acute Care Therapies and was previously the President of the Critical Care division in the Group's former Medical Systems business area. Jens has long and broad experience from the healthcare industry and has previously held positions in research and development, as well as strategy and marketing, at other large companies in the industry, including GE Healthcare and Pharmacia & Upjohn. Jens has a PhD in Polymer Technology from the Royal Institute of Technology of Stockholm and holds an Executive MBA from the Stockholm School of Economics.

New investments in the growing Bariatrics segment

Acquisition of market leader 1st Call Mobility Ltd

On June 9, Getinge acquired UK company 1st Call Mobility Ltd, a specialist in the sale and rental of equipment for treating bariatric patients. The revenue of the company amounts to approximately SEK 100 M and the purchase consideration amounted to SEK 195 M. 1st Call Mobility is a market leader in its field in the UK and has had a growth rate of 30% over the past five years. The acquisition is well in line with Getinge's growth strategy and entails expanded and improved rental capacity in the segment, and a more attractive and broader offering to customers. Under the acquisition, Getinge will assume responsibility for the 48 employees who work at six depots throughout the UK.

New medical bed frame for bariatric patients

During the quarter, the Group expanded its portfolio of solutions for the treatment of bariatric patients with the launch of a new medical bed frame, Citadel ™ Plus Bariatric Care System. The product was developed to offer a safe and dignified care environment for patients. The bed frame efficiently redistributes pressure, thus preventing and treating pressure ulcers. The Maxi Sky 2 Plus Bariatric Ceiling Lift System, offering major ergonomic advantages, was also launched.

Strengthened operating room equipment offering

New mobile operating table wins iF DESIGN AWARD 2016

Getinge's latest generation of mobile operating tables, MEERA, was launched during the quarter. MEERA represents the latest in the development of multidisciplinary operating tables to meet stricter requirements for quality, flexibility and cost efficiency. The product was awarded with the renowned iF DESIGN AWARD 2016 in the product category for Medicine/Healthcare. The iF Design Award has been recognized as one of the most influential awards in the global design industry.

Launch of new VOLISTA Access surgical light

The Group extended the existing VOLISTA range with the launch of VOLISTA Access during the quarter. VOLISTA Access provides constant illumination throughout a surgical procedure using the patented FSP (Flux Stability Program) system, avoiding lighting variations inherent to LED Technology. VOLISTA Access is also equipped with a boost function that offers reserve illumination capacity up to 160,000 Lux, which is highly beneficial, for example, during complications in operations.

New cost-efficient product for equipment sterilization

A new GSS67F sterilizer, which performs chemical sterilization using low-temperature steam and formalin (formaldehyde dissolved in water) – a very safe and well-proven method – was launched during the quarter. The product offers extensive savings and efficiency opportunities, for example, energy needs are cut by up to 35% and water consumption by up to 70%.

Settlement in ongoing litigation case in the US

As previously announced, the subsidiary Atrium Medical Corporation was involved in litigation regarding the sale and marketing of certain products. A former employee of Atrium had filed a complaint in a US federal court under seal. The complaint concerns alleged violations of the federal False Claims Act and similar state statutes. In August 2015, the court dismissed the relator's claim of fraud on the FDA. During the fourth quarter of 2015, the magistrate judge recommended dismissal of the relator's remaining claims pertaining to Atrium's alleged offlabel marketing. The parties agreed to a preliminary settlement of the remaining claims. Based on this preliminary settlement, Getinge Group's fourth quarter of 2015 was charged an amount of about SEK 110 M. A settlement in line with the preliminary agreement was reached in June, resulting in no additional costs for the quarter. The settlement does not constitute an admission from any of the parties or an acknowledgment that any of the parties' claims are unfounded.

Restructuring activities – production unit transfer completed

As previously announced, Getinge decided to relocate the production conducted at the production unit in Rochester, New York, US to the production unit in Poznan, Poland. The relocation was completed during the second quarter. The total restructuring costs for these activities are expected to amount to approximately SEK 50 M, of which about SEK 11 M was charged to the first quarter and SEK 33 M was charged to 2015. No additional costs were charged to the second quarter. The transfer is expected to generate annual savings of about SEK 45 M.

OUTLOOK (CHANGED)

We expect moderate organic sales growth in 2016. In the EMEA region, the Group expects slightly positive growth, which is also our assessment of the Western European market. In the Americas region, the Group expects slightly positive growth, with demand in the North American market deemed to increase slightly, while challenges in Latin America remain. In the APAC region, growth prospects are deemed to be favorable, with a particularly positive outlook for South-East Asia and India, although China remains difficult to assess.

The financial consequences of the Consent Decree with the FDA 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 awaiting the FDA's decision on the remediation plan related to the production unit in Hechingen. Accordingly, the financial consequences could be adjusted in line with the final plan.

Restructuring costs for the full-year 2016 are expected to amount to approximately SEK 800 M (657).

NET SALES (organic)

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 increased organically by 3.3% year-on-year. All segments in the Business Category Unit reported growth. The organic order intake in the APAC region increased by 27.6%, while the trend was weaker in the Americas (-2.3%) as well as in the EMEA (-2.0%).

Order intake regions, MSEK	Q2 2016	Q2 2016*	Q2 2015	Change %*	Jan-Jun 2016	Jan-Jun 2016*	Jan-Jun 2015	Change %*
EMEA	1 359	1 410	1 439	-2.0%	2 550	2 632	2 675	-1.6%
Americas	740	774	792	-2.3%	1 375	1 410	1 430	-1.4%
APAC	611	628	492	27.6%	1 021	1 047	1 008	3.9%
Surgical Work flows, total	2 710	2 812	2 723	3.3%	4 946	5 089	5 113	-0.5%

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Net sales increased organically by 2.4% compared to last year. This trend was mainly attributable to the Life Science segment, which rose 42.6% due to the strong performance in Europe and South-East Asia. The Surgical Workplaces segment reported negative organic growth in the quarter, primarily due to weaker sales in both the APAC and Americas regions, while the EMEA noted a positive trend.

The gross margin for Surgical Workflows fell year-on-year to 35.9% (36.8), mainly due to an unfavorable product mix. Selling and administrative expenses declined in the quarter as an effect of the Group's ongoing efficiency-enhancement program. EBITA before restructuring, acquisition and integration costs amounted to SEK 193 M (131). Restructuring costs amounted to SEK 37 M (48), primarily as a result of the transformation and efficiency-enhancement programs.

Income statement in brief	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	Rolling 12M	FY 2015
Net sales, MSEK	2 384	2 398	-0.6%	4 327	4 520	-4.3%	10 698	10 891
Adj. for x-rates, acqui sitions and divest
ments, %			2.4%			-1.9%
Gross Profit, MSEK	856	883	-3.1%	1 568	1 669	-6.1%	4 127	4 228
Gross margin, %	35.9%	36.8%	-0.9%	36.2%	36.9%	-0.7%	38.6%	38.8%
Operating costs, MSEK	- 670	- 759	-11.7%	-1 343	- 1 493	-10.0%	-2 873	- 3 023
EBITA before restruc turing, acquisition and integration costs, MSEK	193	131	47.3%	238	190	25.3%	1 281	1 233
EBITA margin, %	8.1%	5.5%	2.6%	5.5%	4.2%	1.3%	12.0%	11.3%
Acquisition expenses, MSEK	- 1	- 1	0.0%	- 1	- 1	0.0%	- 9	- 9
Restructuring and integration costs, MSEK	- 37	- 48	-22.9%	- 79	- 72	9.7%	- 149	- 142
EBIT, MSEK	148	75	97.3%	145	103	40.8%	1 096	1 054
EBIT margin, %	6.2%	3.1%	3.1%	3.4%	2.3%	1.0%	10.2%	9.7%

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

Organic growth amounted to 8.7%, primarily due to the performance in Europe with all regions reporting growth. The order intake in the Critical Care segment was positive for the quarter and resulted in an organic increase of 15.6%. In the Cardiovascular segment, the order intake increased organically by 6.5% compared to last year.

Order intake regions, MSEK	Q2 2016	Q2 2016*	Q2 2015	Change %*	Jan-Jun 2016	Jan-Jun 2016*	Jan-Jun 2015	Change %*
EMEA	970	1 000	841	18.9%	1 823	1 879	1 790	5.0%
Americas	1 487	1 543	1 489	3.6%	3 033	3 084	2 964	4.0%
APAC	501	514	482	6.6%	983	1 004	912	10.1%
Acute Care Therapies, total	2 958	3 057	2 812	8.7%	5 839	5 967	5 666	5.3%

* adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Net sales for Acute Care Therapies increased organically by 0.8% in the second quarter. In the APAC region, sales rose organically by 3.5%, with a particularly strong performance in the Critical Care segment. The trend in sales volumes remained cautiously positive in the Americas region, while the trend in the EMEA region was weaker.

The gross margin increased year-on-year to 56.0% (54.8). Loss of revenue attributable to the Consent Decree with the FDA was offset by higher organic sales and a favorable product mix. The cost trend was stable during the quarter and administrative and selling expenses were in line with the preceding quarter. EBITA before restructuring, acquisition and integration costs amounted to SEK 491 M (514). Exchange-rate fluctuations had an adverse effect of approximately SEK 46 M on EBITA compared with the preceding year. The quarter was charged with restructuring costs amounting to SEK 38 M (26), mainly related to the transformation and efficiency-enhancement programs.

Income statement in brief	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	Rolling 12M	FY 2015
Net sales, MSEK	2 796	2 863	-2.3%	5 407	5 480	-1.3%	11 504	11 577
Adj. for x-rates, acqui sitions and divest ments, %			0.8%			0.8%
Gross Profit, MSEK	1 566	1 570	-0.3%	3 002	3 015	-0.4%	6 415	6 428
Gross margin, %	56.0%	54.8%	1.2%	55.5%	55.0%	0.5%	55.8%	55.5%
Operating costs, MSEK	- 1 212	- 1 205	0.6%	- 2 414	- 2 338	3.3%	- 4 827	- 4 751
EBITA before restruc turing, acquisition and integration costs,
MSEK	491	514	-4.5%	862	974	-11.5%	2 164	2 276
EBITA margin, %	17.6%	18.0%	-0.4%	15.9%	17.8%	-1.9%	18.8%	19.7%
Acquisition expenses, MSEK	- 2	- 8	-75.0%	- 4	- 17	-76.5%	- 5	- 18
Restructuring and integration costs, MSEK	- 38	- 26	46.2%	- 96	- 95	1.1%	- 314	- 313
EBIT, MSEK	314	331	-5.1%	488	565	-13.6%	1 269	1 346
EBIT margin, %	11.2%	11.6%	-0.4%	9.0%	10.3%	-1.3%	11.0%	11.6%

Getinge Group 2016 | Q2 2016 | Page 10 of 23

NET SALES (organic)

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 5.6% year-on-year. The main reasons for this trend were the weak order intake in North America and East Asia and lower demand in the Capital segment where the organic order intake fell 5.2%. This was largely due to weak demand for hygiene products and medical beds. The organic order intake in the Service segment was also negative. The performance of the Rental segment was slightly negative, primarily due to lower demand for therapeutic mattresses.

Order intake regions, MSEK	Q2 2016	Q2 2016*	Q2 2015	Change %*	Jan-Jun 2016	Jan-Jun 2016*	Jan-Jun 2015	Change %*
EMEA	893	928	920	0.9%	1 796	1 858	1 899	-2.2%
Americas	668	695	768	-9.5%	1 396	1 437	1 515	-5.1%
APAC	231	247	293	-15.7%	407	433	515	-15.9 %
Patient & Post

Acute Care, total 1 792 1 870 1 981 -5.6% 3 599 3 728 3 929 -5.1% * adjusted for currency rates, acquisitions and divestments

NET SALES AND RESULTS

Organic net sales fell by 5.3% in the quarter, a trend mainly the result of lower sales in the Capital segment where sales declined in all regions. Organic net sales for the Service segment and Rental segment also declined. The trend in rentals operations of bariatric care products fell during the period, while medical bed rentals increased.

The gross margin declined year-on-year to 42.6% (45.7), mainly due to lower sales. Selling and administrative expenses declined, primarily as the result of the ongoing transformation program. EBITA before restructuring, acquisition and integration costs amounted to SEK 154 M (128) for the second quarter. Exchange-rate fluctuations of approximately SEK 13 M negatively impacted EBITA compared with the preceding year. The quarter was charged with restructuring costs amounting to SEK 29 M (12), mainly related to the transformation and efficiency-enhancement programs.

Income statement in brief	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	Rolling 12M	FY 2015
Net sales, MSEK	1 747	1 920	-9.0%	3 570	3 893	-8.3%	7 444	7 767
Adj. for x-rates, acqui sitions and divest ments, %			-5.3%			-5.1%
Gross Profit, MSEK	745	878	-15.1%	1 608	1 789	-10.1%	3 326	3 507
Gross margin, %	42.6%	45.7%	-3.1%	45.0%	46.0%	-1.0%	44.7%	45.2%
Operating costs, MSEK	- 621	- 783	-20.7%	- 1 259	- 1 488	-15.4%	- 2 521	- 2 750
EBITA before restruc turing, acquisition and integration costs,
MSEK	154	128	20.3%	409	368	11.1%	930	889
EBITA margin, %	8.8%	6.7%	2.1%	11.5%	9.5%	2.0%	12.5%	11.4%
Acquisition expenses, MSEK	- 5	- 1		- 5	- 1		- 8	- 4
Restructuring and integration costs, MSEK	- 29	- 12	141.7%	- 43	- 103	-58.3%	- 120	- 180
EBIT, MSEK	90	82	9.8%	301	197	52.8%	677	573
EBIT margin, %	5.2%	4.3%	0.9%	8.4%	5.1%	3.3%	9.1%	7.4%

Other information

KEY EVENTS AFTER THE END OF THE REPORTING PERIOD

There are no key events to report after the end of the reporting period

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. This interim report presents 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 of these alternative performance measures are provided on page 22.

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.

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 finances, 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, July 14, 2016
Carl Bennet Chairman	Johan Bygge	Cecilia Daun Wennborg
Åke Larsson	Rickard Karlsson	Carola Lemne
Johan Malmquist	Alex Myers CEO	Malin Persson
Johan Stern Vice Chairman	Maths Wahlström
This interim report is unaudited.

Consolidated income statement

	Q2	Q2		Jan-Jun	Jan-Jun		Rolling	FY
MSEK	2016	2015	Change %	2016	2015	Change %	12M	2015
Net sales	6 927	7 181	-3.5%	13 304	13 893	-4.2%	29 646	30 235
Cost of goods sold	- 3 760	- 3 850	-2.3%	- 7 126	- 7 420	-4.0%	-15 778	- 16 072
Gross profit	3 167	3 331	-4.9%	6 178	6 473	-4.6%	13 868	14 163
Selling expenses	- 1 514	- 1 684	-10.1%	- 3 092	- 3 362	-8.0%	- 6 335	- 6 605
Administrative expenses	- 828	- 874	-5.3%	- 1 656	- 1 730	-4.3%	- 3 226	- 3 300
Research & development costs1	- 160	- 144	11.1%	- 327	- 301	8.6%	- 624	- 598
Acquisition expenses	- 8	- 11	-27.3%	- 12	- 20	-40.0%	- 25	- 33
Restructuring and integration costs	- 133	- 86	54.7%	- 260	- 270	-3.7%	- 647	- 657
Other operating income and expenses	- 51	- 104	-51.0%	- 42	- 28	50.0%	- 255	- 241
Operating profit2	473	428	10.5%	789	762	3.5%	2 756	2 729
Financial Net	- 162	- 185	-12.4%	- 321	- 374	-14.2%	- 679	- 732
Profit before tax	311	243	28.0%	468	388	20.6%	2 077	1 997
Taxes	- 84	- 66	27.3%	- 126	- 105	20.0%	- 561	- 540
Net profit	227	177	28.2%	342	283	20.8%	1 516	1 457
Attributable to:
Parent company's shareholders	221	170	30.0%	331	259	27.8%	1 462	1 390
Non-controlling interest	6	7	-14.3%	11	24	-54.2%	54	67
Net profit	227	177	28.2%	342	283	20.8%	1 516	1 457
Earnings per share3	0.93	0.71	31.0%	1.39	1.09	27.5%	6.13	5.83
Adjusted Earnings per share	1.91	1.62	17.9%	3.33	3.24	2.8%	10.65	10.55
	Q2	Q2		Jan-Jun	Jan-Jun		Rolling	FY
Operative key figures %	2016	2015		2016	2015		12M	2015
Gross margin	45.7	46.4		46.4	46.6		46.8	46.8
Selling expenses in % of net sales	21.9	23.5		23.2	24.2		21.4	21.8
Administrative expenses in % of net sales	12.0	12.2		12.4	12.5		10.9	10.9
Research & development costs in % of net sales	4.7	4.7		4.6	4.7		4.3	4.3
Operating margin	6.8	6.0		5.9	5.5		9.3	9.0
	Q2	Q2		Jan-Jun	Jan-Jun		Rolling	FY
MSEK	2016	2015		2016	2015		12M	2015
1 Research & development costs	- 325	- 336	-3.3%	- 613	- 647	-5.3%	- 1 266	- 1 300
of which has been capitalized	165	192	-14.1%	286	346	-17.3%	642	702
	- 160	- 144	11.1%	- 327	- 301	8.6%	- 624	- 598
2 Operating profit is charged with depreciations on
intangibles on acquired companies	- 173	- 190	-8.9%	- 347	- 379	-8.4%	- 729	- 761
intangibles	- 173	- 174	-0.6%	- 374	- 342	9.4%	- 742	- 710
on other fixed assets	- 216	- 245	-11.8%	- 453	- 489	-7.4%	- 951	- 987
	- 562	- 609	-7.7%	- 1 174	- 1 210	-3.0%	- 2 422	- 2 458

3 Before and after dilution

Comprehensive earnings statement

MSEK	Q2 2016	Q2 2015	Jan-Jun 2016	Jan-Jun 2015	Rolling 12M	FY 2015
Net profit for the period	227	177	342	283	1 516	1 457
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined-benefit pension
plans	- 167	67	- 141	67	- 231	- 23
Income tax attributable to components in other comprehensive
income	31	- 13	26	- 13	45	6
Items that can later be restated in profit for the period
Translation differences	651	- 343	75	504	- 544	- 115
Cash-flow hedges	- 252	483	- 304	- 36	72	340
Income tax attributable to components in other comprehensive
income	56	- 107	67	8	- 16	- 75
Other comprehensive income/loss for the period, net after
tax	319	87	- 277	530	- 674	133
Total comprehensive income for the period	546	264	65	813	842	1 590
Comprehensive income attributable to
Parent Company's shareholders	527	257	45	789	784	1 528
Non-controlling interest	19	7	20	24	58	62

Quarterly results

	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
MSEK	2014	2014	2015	2015	2015	2015	2016	2016
Net sales	6 225	8 458	6 712	7 181	6 925	9 417	6 377	6 927
Cost of goods sold	- 3 179	- 4 279	- 3 570	- 3 850	- 3 685	- 4 968	- 3 366	- 3 760
Gross profit	3 046	4 179	3 142	3 331	3 240	4 449	3 011	3 167
Operating costs	- 2 371	- 2 641	- 2 807	- 2 903	- 2 819	- 2 904	- 2 695	- 2 694
Operating profit	675	1 538	335	428	421	1 545	316	473
Financial Net	- 170	- 167	- 189	- 185	- 183	- 174	- 159	- 162
Profit before tax	505	1 371	146	243	238	1 371	157	311
Taxes	- 137	- 376	- 39	- 66	- 64	- 372	- 42	- 84
Net profit	368	995	107	177	174	999	115	227

Segment overview

	Q2	Q2		Jan-Jun	Jan-Jun			FY
Net Sales, MSEK	2016	2015	Change %	2016	2015	Change %	Rolling 12M	2015
Surgical Workflows	2 384	2 398	-0.6%	4 327	4 520	-4.3%	10 698	10 891
Acute Care Therapies	2 796	2 863	-2.3%	5 407	5 480	-1.3%	11 504	11 577
Patient & Post-Acute Care	1 747	1 920	-9.0%	3 570	3 893	-8.3%	7 444	7 767
Net sales for the group	6 927	7 181	-3.5%	13 304	13 893	-4.2%	29 646	30 235

	Q2	Q2		Jan-Jun	Jan-Jun			FY
Operating profit, MSEK	2016	2015	Change %	2016	2015	Change %	Rolling 12M	2015
Surgical Workflows	148	75	97.3%	145	103	40.8%	1 096	1 054
Acute Care Therapies	314	331	-5.1%	488	565	-13.6%	1 269	1 346
Patient & Post-Acute Care	90	82	9.8%	301	197	52.8%	677	573
Group functions*	- 79	- 60	31.7%	- 145	- 103	40.8%	- 286	- 244
Operating profit	473	428	10.5%	789	762	3.5%	2 756	2 729
Financial net	- 162	- 185	-12.4%	- 321	- 374	-14.2%	- 679	- 732
Profit before tax for the group	311	243	28.0%	468	388	20.6%	2 077	1 997

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

Consolidated balance sheet

	2016	2015	2015
Assets, MSEK	30-June	30-June	31-Dec
Intangible assets	26 829	27 120	26 704
Capitalized Development Projects	3 857	3 602	3 839
Tangible fixed assets	4 652	4 857	4 699
Financial fixed assets	1 773	1 541	1 374
Inventory	5 896	5 881	5 409
Accounts receivable	6 284	6 196	7 470
Other current receivables	2 420	2 841	2 272
Cash and cash equivalents	1 845	1 392	1 468
Total assets	53 556	53 430	53 235
	2016	2015	2015
Shareholders' equity & Liabilities, MSEK	30-June	30-June	31-Dec
Shareholders' equity	18 977	18 825	19 593
Provisions for pensions, interest-bearing	3 115	3 145	3 052
Other interest bearing liabilities	22 071	21 593	21 283
Other Provisions	2 024	2 414	2 243
Accounts Payable	1 765	1 915	1 986
Other non interest-bearing liabilities	5 604	5 538	5 078
Total Equity & Liabilities	53 556	53 430	53 235

Consolidated net interest-bearing debt

	2016	2015	2015
MSEK	30-June	30-June	31-Dec
Debt to credit institutions	22 071	21 593	21 283
Provisions for pensions, interest-bearing	3 115	3 145	3 052
Interest bearing liabilities	25 186	24 738	24 335
Less liquid funds	- 1 845	- 1 392	- 1 468
Net interest-bearing debt	23 341	23 346	22 867

Consolidated cash-flow statement

	Q2	Q2	Jan-Jun	Jan-Jun	Rolling	FY
MSEK	2016	2015	2016	2015	12M	2015
Current activities EBITDA	1 035	1 037	1 963	1 973	5 177	5 187
Restructuring Cost expenses	133	86	260	270	647	657
Restructuring costs paid	- 202	- 179	- 401	- 447	- 872	- 918
Adjustment for items not included in cash flow	28	12	32	16	246	230
Financial items	- 162	- 185	- 321	- 374	- 679	- 732
Taxes paid	- 101	- 254	- 262	- 526	- 594	- 858
Cash flow before changes in working capital	731	517	1 271	912	3 925	3 566
Changes in working capital
Inventory	- 211	- 171	- 565	- 536	- 200	- 171
Current receivables	193	216	1 115	927	158	- 30
Current operating liabilities	- 250	36	- 658	- 51	- 514	93
Cash flow from operations	463	598	1 163	1 252	3 369	3 458
Investments
Acquisitions and divestments of business	- 214	0	- 214	297	- 250	261
Capitalized development costs	- 165	- 192	- 286	- 346	- 642	- 702
Rental equipment	- 40	- 63	- 74	- 132	- 248	- 306
Investments in tangible fixed assets	- 196	- 190	- 401	- 378	-1 069	- 1 046
Cash flow from investments	- 615	- 445	- 975	- 559	-2 209	- 1 793
Financial activities
Change in interest-bearing debt	511	- 519	850	715	430	295
Change in long-term receivables	48	15	28	0	2	- 26
Dividend paid	- 681	- 682	- 681	- 682	- 690	- 691
Cash flow from financial activities	- 122	- 1 186	197	33	- 258	- 422
Cash flow for the period	- 274	- 1 033	385	726	902	1 243
Cash and cash equivalents at the beginning of the period	2 056	2 027	1 468	1 482	1 392	1 482
Translation differences	63	398	- 8	- 816	- 449	- 1 257
Cash and cash equivalents at the end of the period	1 845	1 392	1 845	1 392	1 845	1 468

Changes in shareholders' equity

MSEK	Share capital	Other Capital provided	Reserves	Retained earnings	Total	Non-controlling 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	-	-	- 170	215	45	20	65
Dividend	-	-	-	- 667	- 667	- 14	- 681
Closing balance on 30 June 2016	119	5 960	- 167	12 669	18 581	396	18 977

Key figures for the Group

	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	Rolling 12M	FY 2015
Order intake, MSEK	7 460	7 516	-0.7%	14 384	14 708	-2.2%	30 107	30 431
Adj. for x-rates, acquisitions and divestments			3.0%			0.5%
Net sales, MSEK	6 927	7 181	-3.5%	13 304	13 893	-4.2%	29 646	30 235
Adj. for x-rates, acquisitions and divestments			-0.3%			-1.7%
Gross margin	45.7%	46.4%	-0.7%	46.4%	46.6%	-0.2%	46.8%	46.8%
EBITA before restructuring-, integration- and acquisition costs	788	715	10.2%	1 408	1 432	-1.7%	4 155	4 179
EBITA margin before restructuring-, integration and acquisition costs	11.4%	10.0%	1.4%	10.6%	10.3%	0.3%	14.0%	13.8%
Restructuring and integration costs	- 133	- 86	54.7%	- 260	- 270	-3.7%	- 647	- 657
Acquisition costs	- 8	- 11	-27.3%	- 12	- 20	-40.0%	- 25	- 33
EBITA	646	618	4.5%	1 136	1 142	-0.5%	3 484	3 490
EBITA margin	9.3%	8.6%	0.7%	8.5%	8.2%	0.3%	11.8%	11.5%
Earnings per share after full tax*, SEK	0.93	0.71	31.0%	1.39	1.09	27.5%	6.13	5.83
Adjusted earnings per share, SEK	1.91	1.62	17.9%	3.33	3.24	2.8%	10.65	10.55
Number of shares, thousands	238 323	238 323		238 323	238 323		238 323	238 323
Interest cover, multiple				5.0	5.0	0.0%		4.6
Operating capital, MSEK				42 245	39 407	7.2%		40 771
Return on operating capital, per cent				8.1%	9.2%	-1.1%		8.6%
Return on equity, per cent				8.0%	6.6%	1.4%		8.5%
Net debt/equity ratio, multiple				1.23	1.24	-0.8%		1.17
Cash Conversion	44.7%	57.7%	-13.0%	59.2%	63.4%	-4.2%	65.1%	66.7%
Equity/assets ratio, per cent				35.4%	35.2%	0.2%		36.8%
Equity per share, SEK				79.63	79.0	0.8%		82.21
Number of employees				15 591	15 834	-1.5%		15 424

* Before and after dilution

Five-year review

	2016	2015	2014	2013	2012
MSEK	June 30	June 30	June 30	June 30	June 30
Net Sales	13 304	13 893	11 959	11 680	10 858
Net profit	342	283	71	641	951
Earnings per share	1.39	1.09	0.29	2.67	3.98

Income statement for the Parent Company

MSEK	Q2 2016	Q2 2015	Change %	Jan-Jun 2016	Jan-Jun 2015	Change %	FY 2015
Administrative expenses	- 149	- 73	104.1%	- 276	- 124	122.6%	- 261
Operating profit	- 149	- 73	104.1%	- 276	- 124	122.6%	- 261
Financial net	- 714	745		- 623	- 819	-23.9%	2 420
Profit before tax	- 863	672		- 899	- 943	-4.7%	2 159
Taxes	- 5	- 5	0.0%	- 6	- 6	0.0%	- 74
Net profit	- 868	667		- 905	- 949	-4.6%	- 2 085

Receivables and liabilities in foreign currencies were measured at the closing day rate, which resulted in an exchange gain of SEK 43 M (loss: 246) recognized in net financial items for the period January-June.

Balance sheet for the Parent Company

Assets, MSEK	2016 30-June	2015 30-June	2015 31-Dec
Tangible fixed assets	110	60	104
Shares in group companies	25 133	25 081	25 112
Deferred tax assets	54	43	54
Receivables from group companies	7 258	5 347	8 333
Current receivables	117	105	70
Total assets	32 672	30 636	33 673
	2016	2015	2015
Shareholders' equity & Liabilities, MSEK	30-June	30-June	31-Dec
Shareholders' equity	8 431	6 964	10 000
Long-term liabilities	17 296	15 193	15 929
Liabilities to group companies	2 190	2 255	2 396
Current liabilities	4 755	6 224	5 348
Total Equity & Liabilities	32 672	30 636	33 673

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 price 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 of 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 price 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
Inventories	4
Other current assets	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 of liquid funds	148

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

DEFINITIONS

EBIT	Operating profit
EBITA	Operating profit before amortization of intangible assets identified in conjunc tion with corporate acquisitions
EBITDA	Operating profit before depreciation and amortization
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 identified in conjunction with corporate acquisitions divided 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 Com pany'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 before tax in relation to average shareholders' equi ty
Net debt/equity ratio	Net interest-bearing debt in relation to equity
Equity/assets ratio	Equity in relation to total assets

MEDICAL TERMS

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 deepleg vein
GEOGRAPHIC AREAS

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

TELECONFERENCE

Teleconference with CEO Alex Myers and CFO Pernille Fabricius on July 14, 2016 at 10:00 a.m. CET Sweden: +46 (0) 8 5065 3937 UK: +44 (0)20 3427 1907 US: +1 212 444 0896 Code: 4449409 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=4449409&role=attend&pw=pw1111

NEXT REPORT

The next report from the Getinge Group will be published on October 18, 2016.

CONTACT

Pernille Fabricius, Group CFO +46 10 335 00 39 pernille.fabricius@getinge.com

This information is such that Getinge AB must disclose in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the contact person above on July 14, 2016 at 8:00 a.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 everyday life for people, today and tomorrow.