Getinge

Quarterly Report • Apr 26, 2022

Interim report

January – March 2022

Comments from Mattias Perjos, President & CEO Healthy order book but supply chain challenges

"Net sales declined by 6.4% and the order intake fell organically by 4.4% in the quarter. However, excluding the strong sales of ventilators in 2021, we had organic growth in both order intake and net sales. The order book grew 8% during the quarter and is 21% higher now than at the same time in 2021, excluding currency fluctuations. We have a strong pipeline of orders and our sales forecast for the full-year remains unchanged. Our deliveries were negatively affected toward the end of the quarter as a result of temporary supply chain challenges. We believe that net sales corresponding to SEK 300 M have been delayed as a result of the shortage of components. Russia's invasion of Ukraine is tragic and a huge source of suffering for the population. Getinge condemns these acts of violence and is working actively to support humanitarian efforts in Ukraine. We do not have any production or major deliveries in either of these countries, but are impacted indirectly in several ways. This could result in higher costs for input goods and delays, which will ultimately affect patients and hospitals around the world. We have well-functioning methods for ensuring access to components and transportation, and I am confident ahead of the second half of the year in which we expect to make major deliveries. The cost increases for components affect us negatively, although we have been able to partly compensate for them by adjusting prices. Our customers have been understanding about the situation and appreciate the products and services that we offer, which provide a solid platform for productive dialogue in the current situation.

We are continuing to strengthen our customer offering. For example, during the quarter we launched Aquadis 56, a new product family of premium washer-disinfectors that reduce the environmental impact, and Life Science was the first of our business areas to have CO2 neutral production sites.

The gross margin could be maintained in the quarter despite lower volumes from ventilators and negative mix effects and challenges in the supply chain. Our EBITA margin was adversely affected by lower volumes and an unfavorable product mix. We expect to see a strong recovery in margins as volumes increase throughout the rest of the year. I look forward to the forthcoming quarter with our continued efforts to create value for patients, clinical personnel and hospitals around the world."

January – March 2022 in brief

• Net sales declined organically by 6.4%. The organic order intake declined by 4.4%.
• Adjusted gross profit amounted to SEK 3,261 M (3,285) and the margin was 52.7% (53.3).
• Adjusted EBITA amounted to SEK 839 M (1,079) and the margin was 13.6% (17.5).
• Adjusted earnings per share amounted to SEK 2.11 (2.68).
• Free cash flow amounted to SEK 420 M (2,026).

Outlook 2022

Organic sales growth is expected to be in the upper part of the range of 4-6% for the full-year 2022.

Summary of financial performance1)

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M	2022	2021	2021
Order intake	6,772	6,616	28,258
Organic change, %	-4.4	-22.8	-3.0
Net sales	6,182	6,169	27,049
Organic change, %	-6.4	12.6	-4.8
Adjusted gross profit	3,261	3,285	14,392
Margin, %	52.7	53.3	53.2
Adjusted EBITDA	1,235	1,461	6,754
Margin, %	20.0	23.7	25.0
Adjusted EBITA	839	1,079	5,212
Margin, %	13.6	17.5	19.3
Adjusted EBIT	797	1,012	4,939
Margin, %	12.9	16.4	18.3
Operating profit (EBIT)	780	960	4,371
Margin, %	12.6	15.6	16.2
Profit before tax	749	903	4,188
Net profit for the period	538	652	3,000
Adjusted net profit for the period	581	738	3,632
Margin, %	9.4	12.0	13.4
Adjusted earnings per share, SEK	2.11	2.68	13.22
Earnings per share, SEK	1.96	2.36	10.90
Cash flow from operating activities	647	2,034	6,560
Free cash flow	420	2,026	5,946

1) See page 3 for calculations of adjusted performance measures.

Group performance

Order intake

January – March 2022

Order intake business areas, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Acute Care Therapies	3,765	3,800	-7.9	15,335
Life Science	985	930	-1.1	4,120
Surgical Workflows	2,022	1,885	1.3	8,803
Total	6,772	6,616	-4.4	28,258

Order intake regions, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Americas	2,653	2,458	-2.6	10,527
APAC	1,758	1,606	1.1	6,919
EMEA	2,360	2,551	-9.5	10,812
Total	6,772	6,616	-4.4	28,258

Net sales

January – March 2022

Net sales business areas, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Acute Care Therapies	3,485	3,774	-14.3	15,527
Life Science	970	767	19.0	3,558
Surgical Workflows	1,728	1,628	-0.1	7,965
Total	6,182	6,169	-6.4	27,049
Net sales	Jan-Mar	Jan-Mar		Jan-Dec
regions, SEK M	2022	2021	Org Δ, %	2021
Americas	2,537	2,397	-4.6	10,249
APAC	1,453	1,355	-0.3	6,632
EMEA	2,193	2,417	-11.6	10,167
Total	6,182	6,169	-6.4	27,049

Net sales specified by capital goods & consumables1), SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Capital goods	2,182	2,641	-22.4	11,292
Consumables	4,000	3,528	5.6	15,757
Total	6,182	6,169	-6.4	27,049

1) From Q1 2022, DPTE®-BetaBags are recognized under consumables. Comparative figures have been restated. For restated figures 2021, see Note 9.

Net sales – bridge between Jan-Mar 2021 and Jan-Mar 2022

• The order intake declined organically as a result of challenging comparative figures in ICU ventilators and ECMO therapy products in Acute Care Therapies in EMEA in Q1 2021.
• The order intake declined slightly in Life Science, mainly as a result of high comparative figures in bioreactors and capital goods related to Sterile Transfer.
• Organic growth continued in Surgical Workflows, with a strong performance in Americas.
• The order book was 21% larger than at the end of Q1 2021 (excluding currency effects).
• Disruptions in the supply chain in all business areas toward the end of the quarter had a negative impact on net sales. Net sales that were postponed are estimated at SEK 300 M.
• Net sales in Acute Care Therapies declined organically as a result of challenging comparative figures, primarily in ventilators. This was partly offset by continuing growth in products for planned cardiovascular procedures.
• The high rate of growth in Life Science persisted, with a strong trend in sterilizers and continuing growth in DPTE®-BetaBags and service.
• Surgical Workflows' organic net sales were unchanged during the quarter. Sales of OR products increased slightly, while net sales for Infection Control were unchanged and Digital Health Solutions declined.

Net sales increased by

• SEK 13 M, corresponding to 0.2%. Net sales from acquisitions accounted for SEK 9 M,
• corresponding to 0.2%. Exchange rates had a positive impact of SEK 398 M on sales, corresponding to 6.4%.
• Volume, mix and price negatively affected sales by SEK 394 M, corresponding to 6.4%.

Underlying earnings trend

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M Net sales	2022 6,182	2021 6,169	2021 27,049
Adjusted gross profit	3,261	3,285	14,392
Margin, %	52.7	53.3	53.2
Adjusted operating expenses	-2,026	-1,825	-7,639
Adjusted EBITDA	1,235	1,461	6,754
Margin, %	20.0	23.7	25.0
Depreciation, amortization and write-downs of
intangible assets and tangible assets 1)	-396	-382	-1,542
Adjusted EBITA	839	1,079	5,212
Margin, %	13.6	17.5	19.3
A Amortization and write-down of acquired
intangible assets1)	-41	-67	-273
Adjusted EBIT	797	1,012	4,939
Margin, %	12.9	16.4	18.3
B Acquisition and restructuring costs	-17	-90	-95
C Other items affecting comparability2)	-	37	-473
Operating profit (EBIT)	780	960	4,371
Net financial items	-32	-56	-183
Profit before tax	749	903	4,188
Adjusted profit before tax
(adjusted for A, B and C)	807	1,022	5,029
Margin, %	13.1	16.6	18.6
Taxes	-210	-251	-1,187
D Adjustment of tax 2)	-16	-33	-209
Adjusted net profit for the period	581	738	3,632
(adjusted for A, B, C and D)
Margin, %	9.4	12.0	13.4
Of which, attributable to Parent Company
shareholders	576	730	3,601
Average number of shares, thousands	272,370	272,370	272,370
Adjusted earnings per share, SEK
(adjusted for A, B, C and D)	2.11	2.68	13.22

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

Adjusted EBITA per business area1)

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M	2022	2021	2021
Acute Care Therapies	796	1,069	4,444
Margin, %	22.9	28.3	28.6
Life Science	203	150	729
Margin, %	20.9	19.6	20.5
Surgical Workflows	-77	-65	390
Margin, %	-4.4	-4.0	4.9
Group functions and other (incl. eliminations)	-84	-75	-351
Total	839	1,079	5,212
Margin, %	13.6	17.5	19.3

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

Adjusted EBITA – bridge between Jan-Mar 2021 and Jan-Mar 2022

• Currency effects impacted adjusted gross profit positively by SEK 264 M and adjusted EBITA by SEK 23 M.
• The gross margin fell by 0.6 of a percentage point as a result of volume and mix effects, and higher transportation and materials costs and supply chain disruptions. This could be partly compensated for by price adjustments and previously announced rationalizations.
• Adjusted operating expenses rose by 11% compared with Q1 2021. Adjusted operating expenses declined organically by 2.4% thanks to the positive effects of previously announced rationalizations.
• Adjusted EBITA fell by SEK 240 M year-on-year and the margin declined by 3.9 percentage points to 13.6% due to mix and volume effects.
• Acquisition and restructuring costs amounted to SEK 17 M, and primarily comprised of restructuring costs.
• Net financial items improved by SEK 25 M as a result of lower net debt and lower interest expenses as well as positive currency effects.
• Acute Care Therapies reduced its adjusted EBITA by SEK 272 M and the margin fell by 5.5 percentage points, mainly due to lower sales volumes in ventilators.
• Life Science's adjusted EBITA rose by SEK 53 M and the margin increased by 1.3 percentage points, mainly due to higher sales.
• Surgical Workflows' adjusted EBITA fell by SEK 12 M and the margin declined 0.4 of a percentage point, primarily due to negative currency effects.

Adjusted operating expenses

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

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Selling expenses	-1,052	-1,011	-4,077
Administrative expenses	-736	-685	-2,895
Research and development costs	-242	-190	-804
Other operating income and expenses	4	62	137
Total	-2,026	-1,825	-7,639

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

Currency impact

	Jan-Mar
SEK M	2022
Net sales	398
Adjusted gross profit	264
Adjusted EBITDA	41
Adjusted EBITA	23
Adjusted EBIT	21

Cash flow and financial position1)

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Cash flow before changes in working capital	892	1,249	5,618
Changes in working capital	-246	785	942
Net investments in non-current assets	-227	-8	-614
Free cash flow	420	2,026	5,946
Net interest-bearing cash/debt	2,986	5,646	3,609
In relation to adjusted EBITDA1) R12M, multiple	0.5	0.7	0.5
Net interest-bearing cash/debt, excl. pension provisions	-29	2,389	231
In relation to adjusted EBITDA1) R12M, multiple	0.0	0.3	0.0

1) See Note 5 for items affecting comparability and Note 7 for alternative performance measures.

Research and development

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Research and development spending	-353	-275	-1,150
Amortization, depreciation and write-downs	-11	-11	-47
Research and development costs, gross	-364	-286	-1,197
In relation to net sales, %	5.9	4.6	4.4
Capitalized development costs	111	84	346
In relation to net sales, %	1.8	1.4	1.3
Research and development costs, net	-253	-201	-851
Amortization and write-down of capitalized development costs1)	-92	-99	-383
Of which write-downs	-1	0	-6
Of which amortization in cost of goods sold	-91	-92	-375

1) Capitalized development projects

• Adjusted operating expenses rose by 11% compared with Q1 2021, mainly as a result of negative currency effects, higher R&D costs and operating costs in acquired entities.
• Adjusted operating expenses declined organically by 2.4%.
• Adjusted EBITA was positively impacted by translation effects of SEK 58 M and negatively by the net of transaction effects, hedging outcome and revaluation of operating receivables and liabilities in foreign currency of SEK 35 M.

Free cash flow for the quarter was negatively affected by working capital, mainly as a result of production disruptions and the inventory build-up ahead of strong deliveries expected in the second half of the year. In addition, taxes paid contributed negatively to the free cash flow.

• Net debt continued to decline, mainly as a result of positive cash flow and revaluation effects.
• Net debt in relation to adjusted EBITDA R12M remained at a low level.
• R&D spending were 28% higher than in the year-earlier period as a result of higher activity and currency effects.
• Capitalized development costs increased by 32% compared with the year-earlier period.

Sustainability developments

In 2020, Getinge raised its ambitions in sustainability further, which are described in the company's sustainability framework. The framework covers the focus areas of Quality Culture, Passionate Employees, Environmental & Social Engagement and Business Ethics & Responsible Leadership. The aim is to generate sustainable value for customers, employees and other stakeholders. At the Capital Markets Day in November 2021, targets were set for the four focus areas and Getinge will report on its performance in the annual report. From this report, Getinge reports its quarterly performance in relevant indicators for these targets, as presented below. In the sections on the following pages, covering the performance in the business areas, relevant activities will be described.

Key areas	Jan-Mar 2022
Quality Culture
Improved customer quality index (%)1)	65
Online customer training (training courses)	11,162
Passionate Employees
Sick leave (%)	3.5
Percentage of female employees (%)	36.6
Percentage of female managers (%)	32.5
Environmental & Social Engagement
Scope 1 & 2 GHG emissions Scope (ton CO2 equivalents)2)	2,576
Total energy consumption in production (MWh)	23,762
Percentage of renewable energy of total energy (%)	50
Percentage of recycled waste (%)	54
Business Ethics & Responsible Leadership
Percentage of employees who completed online training in business ethics (%)	83

1) Based on regular internal surveys for which respondents rate their level of awareness about the quality strategy and

commitment in relevant initiatives and changes to quality-related KPIs. Average for the period

2) Carbon emissions from production. Scope 1, including emissions from oil and gas consumption, and Scope 2, including emissions from electricity, heating and cooling (in ton CO2 equivalents)

Acute Care Therapies

Acute Care Therapies offers world-leading solutions for life support in acute health conditions. The offering includes solutions for cardiovascular procedures and a broad selection of products and therapies for intensive care.

Order intake and net sales

Order intake regions, SEK M Jan-Mar 2022 Jan-Mar 2021 Org Δ, % Jan-Dec 2021 Americas 1,729 1,736 -10.5 7,129 APAC 999 897 2.5 3,732 EMEA 1,037 1,167 -12.1 4,474 Total 3,765 3,800 -7.915,335

Net sales regions, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Americas	1,720	1,697	-9.1	7,105
APAC	774	849	-15.2	3,760
EMEA	991	1,228	-20.8	4,661
Total	3,485	3,774	-14.3	15,527

Net sales specified by capital goods & consumables, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Capital goods	881	1,467	-43.5	5,090
Consumables	2,603	2,307	4.3	10,437
Total	3,485	3,774	-14.3	15,527

Underlying earnings trend1)

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M	2022	2021	2021
Net sales	3,485	3,774	15,527
Adjusted gross profit	2,167	2,310	9,596
Margin, %	62.2	61.2	61.8
Adjusted EBITDA	1,012	1,277	5,272
Margin, %	29.0	33.8	34.0
Depreciation, amortization and write-downs of
intangible assets and tangible assets	-216	-208	-828
Adjusted EBITA	796	1,069	4,444
Margin, %	22.9	28.3	28.6

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

Events in the business area

• In January, Elin Frostehav was appointed President of Acute Care Therapies. She previously headed Getinge's operations and offering in Critical Care, responsible for the record-breaking increase in production of ventilators to meet huge demand under COVID-19. She took up her new role on April 1.
• A newly released study in the Journal of Clinical Monitoring and Computing shows that the unique Automatic Gas Control (AGC) in Getinge's anesthesia machine Flow-i, lowers sevoflurane wastage by up to 58%, which is positive for patients, personnel and the environment.
• Getinge was awarded a new 3-year anesthesia contract from Premier Inc., a healthcare improvement company in the United States uniting an alliance of approximately 4,400 US hospitals and health systems.
• The order intake declined as a result of challenging comparative figures in ventilators and ECMO therapy products in Q1 2021 in Americas and EMEA.
• The organic order intake for cardiovascular surgery products continued to strengthen during the quarter.
• The order book was 6% larger than at the end of Q1 2021 (excluding currency effects).
• Organic net sales declined as a result of challenging comparative figures in ventilators in Q1 2021 and supply chain challenges at the end of the quarter.
• Organic sales of cardiovascular surgery products continued to increase.
• The adjusted gross margin increased by 1.0 percentage point despite lower sales volumes. The margin increased mainly as a result of positive mix effects and currency.
• Adjusted operating expenses increased by 11.9% as a result of currency effects and R&D spending. Organically these expenses declined SEK 39 M or 3.7%.
• The adjusted EBITA margin fell by 5.5 percentage points mainly as a result of lower sales volumes.
• Currency effects impacted sales by SEK +239 M, adjusted gross profit by SEK +184 M and adjusted EBITA by SEK +29 M.

21.4

19.0

1,830

3,558

Life Science

Life Science offers a comprehensive range of equipment, technical expertise and consultation to prevent contamination in pharmaceutical and medical device production and with the aim to strengthen integrity of results in biomedical research.

Order intake and net sales

Order intake regions, SEK M Jan-Mar 2022 Jan-Mar 2021 Org Δ, % Jan-Dec 2021 Americas 373 278 22.5 1,406 APAC 248 257 -11.0 877 EMEA 365 395 -11.3 1,837 Total 985 930 -1.14,120

Net sales regions, SEK M Americas	Jan-Mar 2022 317	Jan-Mar 2021 308	Org Δ, % -5.3	Jan-Dec 2021 1,319
APAC	223	110	86.4	692
EMEA	429	349	19.3	1,547
Total	970	767	19.0	3,558
Net sales specified by capital	Jan-Mar	Jan-Mar		Jan-Dec
goods & consumables1), SEK M	2022	2021	Org Δ, %	2021
Capital goods	423	340	16.0	1,727

1) From Q1 2022, DPTE®-BetaBags are recognized under consumables. Comparative figures have been restated. For restated figures 2021, see Note 9.

Consumables 547 427

Total 970 767

Underlying earnings trend1)

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M	2022	2021	2021
Net sales	970	767	3,558
Adjusted gross profit	419	329	1,492
Margin, %	43.2	42.9	41.9
Adjusted EBITDA	242	185	870
Margin, %	24.9	24.1	24.5
Depreciation, amortization and write-downs of
intangible assets and tangible assets	-39	-34	-141
Adjusted EBITA	203	150	729
Margin, %	20.9	19.6	20.5

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

Events in the business area

• In January, Eric Honroth was appointed President Life Science after previously having been responsible for Getinge's sales organization in North America since 2018. He took up his new role on April 1.
• A new air outlet system for GMP washer-disinfectors was launched during the quarter. This is an additional feature that improves highly effective filtering to protect people and the environment from potentially harmful substances used in drug manufacturing.
• Deliveries of DPTE®-BetaBags took place from the production unit in Merrimack, USA. Production volumes are expected to gradually increase during the year.
• In January 2022, Life Science became the first of Getinge's business areas to have CO2 neutral production sites. This is a key milestone in the work on becoming CO2 neutral in Getinge's own operations.
• The organic order intake declined slightly as a result of challenging comparative figures in bioreactors. Solid growth in washer-disinfectors, service and DPTE®-BetaBags.
• The order book was 21% larger than at the end of Q1 2021 (excluding currency effects).
• High organic growth in net sales in Sterilizers, DPTE®-BetaBags, capital goods in Sterile Transfer and service and spare parts.
• Net sales increased markedly in APAC, mainly due to the large deliveries of sterilizers.
• Challenges in the supply chain toward the end of the quarter had a slightly negative impact on net sales.
• The adjusted gross margin increased by 0.3 of a percentage point as a result of higher volumes, which outweighed the negative effects of the mix and supply chain challenges.
• Adjusted operating expenses increased by 22.2%, mainly due to investments in sales and currency effects. Organically these expenses increased by SEK 11 M or 7.3%.
• The adjusted EBITA margin increased by 1.3 percentage points thanks to higher sales volumes.
• Currency effects impacted sales by SEK +57 M, adjusted gross profit by SEK +19 M and adjusted EBITA by SEK -4 M.

Surgical Workflows

Surgical Workflows offers products and solutions to serve as an end-to-end partner for optimizing the quality, safety and capacity usage of the sterile supply departments and operating rooms.

Order intake and net sales

regions, SEK M	2022	2021	Org Δ, %	Jan-Dec 2021
Americas	551	443	12.8	1,992
APAC	512	452	5.4	2,311
EMEA	959	990	-5.8	4,500
Total	2,022	1,885	1.3	8,803

Net sales regions, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Americas	500	391	15.2	1,825
APAC	455	396	7.6	2,180
EMEA	773	841	-10.8	3,959
Total	1,728	1,628	-0.1	7,965

Net sales specified by capital goods & consumables, SEK M	Jan-Mar 2022	Jan-Mar 2021	Org Δ, %	Jan-Dec 2021
Capital goods	878	835	-1.0	4,475
Consumables	850	793	0.9	3,489
Total	1,728	1,628	-0.1	7,965

Underlying earnings trend1)

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Net sales	1,728	1,628	7,965
Adjusted gross profit	675	646	3,304
Margin, %	39.1	39.7	41.5
Adjusted EBITDA	62	71	949
Margin, %	3.6	4.3	11.9
Depreciation, amortization and write-downs of
intangible assets and tangible assets	-139	-136	-559
Adjusted EBITA	-77	-65	390
Margin, %	-4.4	-4.0	4.9

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

Events in the business area

• Aquadis 56 was launched in February, a new product family of washer-disinfectors aimed at the medium segment. The products offer high-performance cleaning, high capacity and are eco-friendly. This means that the product is well-suited for outpatients, which is a growing customer segment for Getinge.
• During the quarter, Getinge launched IN2, a system of wall and ceiling elements, doors and builtin elements for extended modular room systems in hospitals. This new product line offers a highquality and effective infrastructure for operating rooms, intensive care units and central sterile supply departments, with a choice of materials and different price levels.
• The virtual "Getinge OR days" were held in March. The company shared its expertise in effective processes and work flows in and around ORs and central sterile supply departments. The event attracted more than 1,400 participants.
• The organic order intake for OR products remained strong in the quarter. Growth for the business area as a whole was slightly hampered by the negative trend in Digital Health Solutions.
• Strong momentum in Americas and APAC, but challenging comparative figures in Digital Health Solutions negatively affected the performance for EMEA.
• The order book was 29% larger than at the end of Q1 2021 (excluding currency effects).
• Net sales grew organically in OR products, while net sales for Infection Control were unchanged and net sales for Digital Health Solutions declined.
• Challenges in the supply chain toward the end of the quarter had a negative impact on net sales.
• The adjusted gross margin fell by 0.6 of a percentage point mainly as a result of a negative mix and supply chain challenges.
• Adjusted operating expenses increased by 6.4% as a result of R&D spending and currency effects. Organically these expenses declined SEK 22 M or 3.9%.
• The adjusted EBITA margin fell by SEK 12 M or 0.4 of a percentage point, mainly as a result of a lower gross margin.
• Currency effects impacted sales by SEK +101 M, adjusted gross profit by SEK +61 M and adjusted EBITA by SEK +1 M.

Other information

Russian invasion of Ukraine

On February 24, Russia initiated an invasion of Ukraine. Getinge condemns these acts of violence and is working actively to support humanitarian efforts in Ukraine. In accordance with our mission, to help health care save lives, regardless of nationality and background, Getinge is currently conducting limited operations in Russia.

This means that the company is fulfilling existing commitments with customers and participating in tender processes on a selective basis. It has successively become more difficult to conduct operations in Russia despite the fact that the health sectors are not subject to current trade sanctions. For this reason, Getinge is closely monitoring and evaluating developments.

In financial terms, the Russian invasion of Ukraine may have a negative impact on the development of the Group's earnings and position. It is not possible at the current time to assess the direct consequences of the conflict for Getinge. The company does not conduct any manufacturing in Russia and has no major suppliers in the country. In 2021 and Q1 2022, sales in Russia and Ukraine represented about 1% of the Group's total net sales and equity represented less than 1% of the Group's equity.

Events after the end of the reporting period

No significant events occurred after the end of the reporting period.

Getinge's primary risks, consequences and management

segments.

	Description	Potential consequences	Management
New competitors and new technology	Certain markets and product segments have niche players who offer solutions outside customary market behavior.	These competitors could capture market shares from more established companies such as Getinge, resulting in a negative effect on Getinge's sales and earnings.	Getinge's long-term strategy includes active business intelligence of the competitive landscape to react to this type of competitor. The industry is also considered to have high barriers to entry since medical devices are subject to extensive regulatory requirements.
External shocks, such as geopolitical risks, natural disasters, terrorism, pandemics, etc.	These are often quickly escalating situations that affect large parts of the world, a country, a region or a specific site.	The primary consequence of this type of risk is that employees could be injured. There is also the risk of business interruptions that could have a negative impact on sales and earnings.	Active business intelligence can detect some of these risks at an early stage and the Group will then have the chance to adapt to the new situation. A process to further enhance the Group's work on continuity risks was started in 2021. As part of this process, scenarios based on external shocks will also be included in the risks that Getinge proactively works on. At the end of the quarter, parts of the Chinese market (the Shanghai region) went into lockdown as a result of a new outbreak of COVID-19, which caused certain delivery disruptions. It cannot be ruled out that prolonged or new lockdowns resulting from COVID-19 will delay deliveries and invoicing to customers, primarily in the Chinese market. On February 24, Russia invaded Ukraine. In financial terms, the invasion may have a negative impact on the development of the Group's earnings and position. It is not possible at the current time to assess the direct consequences of the conflict for Getinge.
Quality risks from a regulatory perspective	Significant parts of Getinge's product range are covered by legislation stipulating extensive 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-wide Quality compliance, Regulatory & Medical Affairs function has a representative in the Getinge Executive Team and also a representative on the management teams of each business area, and the function is represented in all R&D and production units. In addition, Getinge's sales force and service technicians receive relevant quality and regulatory training every other year to renew their certification. This is a requirement for representing Getinge. 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. In total, the Group allocates significant resources to quality and regulatory matters in order to best manage this risk exposure, and quality is the overall priority in the Group's strategy.
Product quality from a customer perspective	In certain cases, Getinge's products do not meet customer expectations.	Customers experiencing shortcomings in Getinge's product quality could chose other suppliers. This could entail a risk of lower sales and lower profitability over time.	Getinge applies a far-reaching quality process that aims to ensure a high and even level of quality to meet customers' legitimately high requirements. This is an ongoing process that results in continuous improvements. When quality fails, it is important to rapidly bring the right equipment on site to rectify the fault during the first service visit. Getinge closely monitors the "first time fix" factor of its services operations and works extensively to make improvements related to such faults or shortcomings.
Laws and regulations mainly on business ethics	Contraventions of competition law, anti-corruption, data privacy (GDPR) or trade restrictions.	Could lead to fines or penalties in one or more markets and have a negative impact on the Getinge brand.	Getinge has previously provided information about ongoing investigations and agreements with the authorities regarding anti competitive procedures in the sale of medical devices in Brazil. It cannot be ruled out that any further agreements with authorities may have a material impact on the company's financial earnings and position. Getinge has a zero tolerance policy when it comes to contraventions of these regulations. The Group's Code of Conduct is very clear in this respect. The Ethics & Compliance corporate function was expanded during the year and the head of the department has been a member of the Getinge Executive Team since 2020 to further demonstrate how highly the organization prioritizes these issues. A comprehensive training program in business ethics is provided on an ongoing basis and the aim is for all employees to take the course at least once a year. Getinge's business ethics regulations also apply to external distributors who sell Getinge's products in a large number of countries in which the Group does not have its own presence.
Digitization and innovation	Getinge's future growth depends on the company's ability to develop new and successful products, particularly in the area of digitization. Getinge's ability to innovate is a very important factor in retaining and establishing leading positions for the Group's product	Innovation efforts are costly and it is not possible to guarantee that developed products will be commercially successful, which could result in impairment. In the long term, the Group's position in the market could be negatively affected if Getinge is unsuccessful in this area.	As a means of maximizing the return on investments in research and development, the Group applies a structured selection and planning process that includes careful analyses of the market, technological progress, choice of production method and selection of subcontractors. The actual development work is also conducted in a structured manner and each project undergoes a number of fixed control points. The Group is particularly concerned with ensuring access to the right skills, retaining key individuals, being an attractive employer to recruit talent externally, and identifying and developing talent within the organization.

Other risks of major importance to Getinge

	Description	Potential consequences	Management
Risks related to health care reimbursement systems	Political decisions can change the conditions for health care through changed reimbursement models for health care providers.	Changes to the health care reimbursement system can have a major impact on individual markets by reducing or deferring grants.	It is difficult to influence this risk since these decisions are outside the Group's control but the risk is limited by Getinge being active in a large number of geographical markets.
Product liability risks	Health care suppliers run a risk, like other players in the health care industry, of being subject to product liability and other legal claims.	Such claims can involve large amounts and significant legal expenses. Getinge carries the customary indemnity and product liability insurance, but there is a risk that this insurance coverage may not fully cover product liability and other claims.	The best way of managing these risks is the extensive quality related and regulatory activities performed by the Group. Sources of potential future claims for damages are monitored through active incident reporting. Corrective and protective action (CAPA) is initiated when necessary to investigate the underlying cause, after which the product design may be corrected to remedy the fault. Settlement regarding surgical mesh implants, which Getinge previously announced, is expected to be finalized and payments to be made at the end of 2022 as requested by representatives of the counterparties.
Risks related to intellectual property rights	Getinge's leading positions in many of the Group's product segments are based on patent and trademark rights. These rights could lead to disputes with competitors.	Getinge invests significant resources in product development that results in patent rights. There is a risk that the Group will be involved in costly disputes concerning such rights and thus a risk that invested resources will not generate the expected return if such a dispute is lost.	To secure returns on these investments, Getinge actively upholds its rights and monitors competitors' activities closely. If required, Getinge will protect its intellectual property rights through legal processes.
Financial risks	Getinge is exposed to a number of financial risks in its operations. Financial risks principally pertain to currency risks, interest-rate risks, and credit and counterparty risks.	Fluctuations in exchange rates and interest rates and changes in counterparties' credit profiles could adversely affect the Group's income statement and balance sheet.	Risk management is regulated by the finance policy adopted by the Board and a Treasury directive decided by the Getinge Executive Team based on the finance policy. 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. For more detailed information concerning these risks, refer to Note 28 of the Annual Report.
Information and data security	Leaks of confidential information or hacking into the Group's IT system resulting in restricted availability or interruptions of business critical systems.	Leaks of personal data could lead to high fines. Hacking into IT systems could lead to business interruptions. A loss of sensitive information may adversely affect confidence in the company.	The Group's IT structure is considered to be decentralized, which reduces the consequence of any unauthorized access. The Group improved user authentication during the year to prevent hacking. This work will continue in the year ahead. The Group also closely monitors critical systems to prevent hacking.
Deficiencies in cyber security	Security deficiencies in the Group's digital offering, such as connected machines at customer sites and stricter legal requirements for processing personal data.	Restricted availability of equipment delivered by Getinge to its customers, which could result in interruptions to the hospital operations and it not being possible to offer patients sufficient care in critical situations.	Getinge works diligently to ensure the integrity of its equipment that is connected to the Internet. In-depth access testing and other measures are carried out before these solutions are offered to the Group's customers.
Business interruptions	Unforeseen and sudden events, such as natural disasters, fires, etc. that result in disruptions to production or the supply chain.	Potential interruptions and higher costs in the supply chain and production could lead to more costly or delayed deliveries or, in a worst case scenario, non-delivery to Getinge's customers. Such a situation risks negative consequences for the Group's earnings.	In the first half of 2022, there is a continuing risk of temporary business interruptions linked to a further deterioration in the global availability of electronic components as a result of the ongoing pandemic. The Group continuously works on claims prevention to ensure a high level of availability and delivery reliability. External experts inspect the Group's production units on a regular basis to identify and take action on potential interruption risks, following a Group-wide standard. The process of further improving the Group's business continuity will continue in 2022.
Profitability dependent on certain products and markets	In certain cases, a relatively large share of the total profitability of a product is linked to sales in a certain market.	The consequence of such a situation is that profitability can be adversely affected if sales volumes were to decline due to a changed competitive situation in the market.	Getinge works actively to monitor profitability per product and market in order to ensure profitability over time. To reduce the sensitivity of profitability, the Group actively works on ensuring that it has the right cost level in relation to the current price levels in the market. Getinge also works actively to establish itself in new markets.
Dependence on external suppliers	External suppliers that deliver critical components to the Group are a highly important part of Getinge's manufacturing process. Production disruptions may arise if these components are not supplied on schedule.	One of the potential consequences of this is that life-saving equipment may not be delivered to hospitals as required for maintaining critical health care.	Getinge works actively to monitor critical deliveries. This process is initiated when the partnership is established and is then continuously monitored. The purchasing organization has tools for evaluating risk and for training in this area. The Group also works on ensuring that it has adequate levels of critical components in stock, either in its own operations or with the relevant supplier. Interruptions of critical deliveries are also included in the general activities related to business continuity risks. Refer to "Business interruptions" above.

Seasonal variations

Getinge's sales and earnings are affected by seasonal variations. The highest net sales are usually generated in the fourth quarter, followed by the second, third and first quarters. The shares of sales derived from capital goods and consumables also normally changes during the year, with a higher share of sales of capital goods toward the end of the year.

Transactions with related parties

Getinge carried out normal commercial transactions with Arjo (which was distributed to shareholders in December 2017) for the sale and purchase of goods and services. In addition, no other significant transactions with related parties occurred during the period other than transactions with subsidiaries.

Forward-looking information

This report contains forward-looking information based on the current expectations of company management. Although management deems that the expectations presented by such forwardlooking information are reasonable, no guarantee can be given that these expectations will prove correct. Accordingly, the actual future outcome could vary considerably compared with what is stated in the forward-looking information, due to such factors as changed conditions regarding finances, market and competition, changes in legal and regulatory requirements and other political measures, and fluctuations in exchange rates.

Getinge's financial targets 2022-2025 and dividend policy

• Average annual organic growth in net sales: 4-6 %
• Average adjusted earnings per share growth: >10%
• Getinge's dividend policy is to pay dividends of 30-50% of net profit to shareholders.

Getinge's sustainability targets 2022–2025

• Improved customer quality index >70%
• Employee commitment >70%
• CO2 neutral in its own operations by 2025
• All employees trained in business ethics and responsible leadership

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, April 26, 2022

Johan Malmquist Chairman, AGM-elected Board member

Carl Bennet Vice Chairman, AGM-elected Board member

Johan Bygge AGM-elected Board member

Cecilia Daun Wennborg AGM-elected Board member

Barbro Fridén AGM-elected Board member

Dan Frohm AGM-elected Board member

Sofia Hasselberg AGM-elected Board member

Mattias Perjos President & CEO, AGM-elected Board member

Rickard Karlsson Board member Representative of the Swedish Metalworkers' Union

Malin Persson AGM-elected Board member

Åke Larsson Board member Representative of the Swedish Association of Graduate Engineers

Kristian Samuelsson AGM-elected Board member

This interim report is unaudited.

Consolidated financial statements

Consolidated income statement

		Jan-Mar	Jan-Mar	Jan-Dec
SEK M	Note	2022	2021	2021
Net sales	2	6,182	6,169	27,049
Cost of goods sold		-3,129	-3,089	-13,469
Gross profit	2, 3	3,053	3,080	13,580
Selling expenses		-1,159	-1,134	-4,590
Administrative expenses		-847	-794	-3,337
Research and development costs		-253	-201	-851
Acquisition expenses		-4	-1	-35
Restructuring costs		-13	-89	-61
Other operating income and expenses		4	99	-336
Operating profit (EBIT)	2, 3	780	960	4,371
Net financial items	2	-32	-56	-183
Profit after financial items	2	749	903	4,188
Taxes		-210	-251	-1,187
Net profit for the period		538	652	3,000
Attributable to:
Parent Company shareholders		534	644	2,970
Non-controlling interests		5	8	31
Net profit for the period		538	652	3,000
Earnings per share, SEK1)		1.96	2.36	10.90
Weighted average number of shares for calculation of earnings per share (000s)		272,370	272,370	272,370

1) Before and after dilution

Consolidated statement of comprehensive income

	Jan-Mar	Jan-Mar	Jan-Dec
SEK M	2022	2021	2021
Net profit for the period	538	652	3,000
Other comprehensive income
Items that cannot be restated in profit for the period
Actuarial gains/losses pertaining to defined-benefit pension
plans	400	145	-5
Tax attributable to items that cannot be restated in profit	-107	-34	10
Items that can later be restated in profit for the period
Translation differences and hedging of net investments	502	1,001	1,614
Cash flow hedges	21	-28	-22
Tax attributable to items that can be restated in profit	-7	-2	-17
Other comprehensive income for the period, net after tax	809	1,081	1,580
Total comprehensive income for the period	1,347	1,734	4,580
Comprehensive income attributable to:
Parent Company shareholders	1,337	1,717	4,543
Non-controlling interests	10	17	37
Total comprehensive income for the period	1,347	1,734	4,580

Consolidated balance sheet

SEK M Note	Mar 31 2022	Mar 31 2021	Dec 31 2021
Assets
Intangible assets	24,613	22,968	24,148
Tangible assets	3,101	3,009	3,060
Right-of-use assets	1,109	1,018	1,060
Financial assets	1,145	1,408	1,217
Inventories	5,296	4,805	4,767
Accounts receivable	4,085	4,300	4,695
Other current receivables	1,782	1,632	1,532
Cash and cash equivalents 6	4,319	5,691	4,076
Total assets	45,451	44,831	44,555
Equity and liabilities
Equity	26,524	23,188	25,176
Provisions for pensions, interest-bearing 6	3,015	3,257	3,378
Lease liabilities 6	1,093	992	1,036
Other interest-bearing liabilities 6	3,197	7,088	3,270
Other provisions	4,284	3,226	4,186
Accounts payable	1,946	1,567	1,921
Other non-interest-bearing liabilities	5,392	5,512	5,587
Total equity and liabilities	45,451	44,831	44,555

Changes in equity for the Group

SEK M	Share capital	Other capital provided	Reserves1)	Retained earnings	Total	Non controlling interests	Total equity
Opening balance at January 1, 2021	136	6,789	-323	14,422	21,024	462	21,486
Total comprehensive income for the period	-	-	1,568	2,974	4,543	37	4,580
Dividend	-	-	-	-817	-817	-41	-858
Transactions with non-controlling interests	-	-	-	-	-	-32	-32
Closing balance at December 31, 2021	136	6,789	1,245	16,579	24,750	427	25,176
Opening balance at January 1, 2022	136	6,789	1,245	16,579	24,750	427	25,176
Total comprehensive income for the period	-	-	510	827	1,337	10	1,347
Closing balance at March 31, 2022	136	6,789	1,756	17,406	26,087	437	26,524

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

Consolidated cash flow statement

		Jan-Mar	Jan-Mar	Jan-Dec
SEK M Operating activities	Note	2022	2021	2021
Operating profit (EBIT)		780	960	4,371
Add-back of depreciation, amortization and write-downs	3	438	449	1,814
Other non-cash items		-2	-34	460
Add-back of restructuring costs1)		13	89	61
Paid restructuring costs		-29	-33	-203
Financial items		-40	-59	-192
Taxes paid		-268	-122	-693
Cash flow before changes in working capital		892	1,249	5,618
Changes in working capital
Inventories		-475	-148	-71
Operating receivables		500	1,042	805
Operating liabilities		-270	-109	208
Cash flow from operating activities		647	2,034	6,560
Investing activities
Acquisition of operations	8	-35	-34	-715
Investments in intangible assets and tangible assets		-239	-184	-930
Divestment of non-current assets		12	176	316
Cash flow from investing activities		-262	-42	-1,329
Financing activities
Change in interest-bearing liabilities		-122	-2,277	-5,989
Depreciation of lease liabilities		-96	-95	-389
Change in long-term receivables		-2	1	-1
Dividend paid		-	-	-858
Cash flow from financing activities		-219	-2,372	-7,237
Cash flow for the period		166	-380	-2,006
Cash and cash equivalents at the beginning of the period		4,076	6,056	6,056
Translation differences		78	15	26
Cash and cash equivalents at the end of the period		4,319	5,691	4,076

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 2021 Annual Report and should be read in conjunction with that Annual Report.

For practical reasons, the figures in this interim report have not been rounded off, which is why notes and tables may not total correct amounts. Unless otherwise specified, all figures pertain to SEK M and figures in parentheses pertain to the year-earlier period. The interim report provides alternative performance measures for monitoring the Group's operations.

Note 2 Segment overview

	Jan-Mar	Jan-Mar	Jan-Dec
Net sales, SEK M	2022	2021	2021
Acute Care Therapies	3,485	3,774	15,527
Life Science	970	767	3,558
Surgical Workflows	1,728	1,628	7,965
Total	6,182	6,169	27,049
	Jan-Mar	Jan-Mar	Jan-Dec
Gross profit, SEK M	2022	2021	2021
Acute Care Therapies	2,050	2,190	9,132
Life Science	400	312	1,419
Surgical Workflows	603	579	3,028
Total	3,053	3,080	13,580
	Jan-Mar	Jan-Mar	Jan-Dec
Operating profit (EBIT), SEK M	2022	2021	2021
Acute Care Therapies	767	1,028	3,685
Life Science	190	140	702
Surgical Workflows	-89	-132	369
Group functions and other (incl. eliminations)1)	-87	-76	-386
Operating profit (EBIT)	780	960	4,371
Net financial items	-32	-56	-183
Profit after financial items	749	903	4,188

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

Note 3 Depreciation, amortization and write-downs

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Acquired intangible assets	-41	-67	-273
Intangible assets	-161	-168	-661
Right-of-use assets	-106	-98	-398
Tangible assets	-129	-115	-483
Total	-438	-449	-1,814
of which write-downs	-1	-1	-7

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Cost of goods sold	-208	-205	-813
Selling expenses	-107	-123	-513
Administrative expenses	-112	-109	-442
Research and development costs	-11	-11	-47
Restructuring costs	-	-	-
Total	-438	-449	-1,814
of which write-downs	-1	-1	-7

Note 4 Quarterly results

SEK M	Jan-Mar 2022	Oct-Dec 2021	Jul-Sep 2021	Apr-Jun 2021	Jan-Mar 2021	Oct-Dec 2020	Jul-Sep 2020	Apr-Jun 2020
Net sales	6,182	7,987	6,306	6,587	6,169	8,839	7,976	6,971
Cost of goods sold	-3,129	-4,048	-3,173	-3,160	-3,089	-4,681	-3,846	-3,513
Gross profit	3,053	3,939	3,133	3,427	3,080	4,158	4,130	3,458
Operating expenses	-2,273	-2,828	-2,038	-2,222	-2,120	-2,548	-2,217	-2,701
Operating profit (EBIT)	780	1,112	1,094	1,205	960	1,610	1,913	757
Net financial items	-32	-36	-43	-48	-56	-69	-72	-80
Profit after financial items	749	1,075	1,052	1,157	903	1,541	1,841	677
Taxes	-210	-300	-285	-351	-251	-437	-446	-179
Net profit for the period	538	775	767	806	652	1,104	1,395	497

Note 5 Adjustment items

Adjusted EBITA, SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Acute Care Therapies	796	1,069	4,444
Life Science	203	150	729
Surgical Workflows	-77	-65	390
Group functions and other (incl. eliminations)	-84	-75	-351
Total	839	1,079	5,212
	Jan-Mar	Jan-Mar	Jan-Dec
Adjustments of EBITA, SEK M Specification of items affecting comparability that impact EBITA	2022	2021	2021
Restructuring costs, Acute Care Therapies	-	-22	-1
Restructuring costs, Life Science	-7	-4	-2
Restructuring costs, Surgical Workflows	-6	-63	-58
Capital gain on divestment of property, Acute Care Therapies1)
Provision related to surgical mesh implants, Acute Care Therapies1)	-	37	72
Other, Surgical Workflows 1)	-	-	-601
Group functions and other (incl. eliminations)	-	-	56
	-4	-1	-35
Total	-17	-52	-568
Items affecting comparability per segment
Acute Care Therapies
	-	15	-530
Life Science	-7	-4	-2
Surgical Workflows	-6	-63	-2
Group functions and other (incl. eliminations)	-4	-1	-35
Total	-17	-52	-568

1) Reported in Other operating income and operating expenses

	Jan-Mar	Jan-Mar	Jan-Dec
EBITA, SEK M	2022	2021	2021
Acute Care Therapies	796	1,084	3,914
Life Science	196	147	727
Surgical Workflows	-83	-128	388
Group functions and other (incl. eliminations)	-87	-76	-386
Total	822	1,026	4,643

Adjustments of EBIT, SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Items affecting comparability that impact EBITA (according to above)	-17	-52	-568
Total	-17	-52	-568

Adjustment of tax, SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Amortization and write-down of acquired intangible assets1)	41	67	273
Items affecting comparability	17	52	568
Adjustment items, total	58	119	841
Tax effect on adjustment items2)	-16	-33	-209
Adjustment for tax items affecting comparability	-	-	-
Total	-16	-33	-209

1) Excluding write-downs classified as items affecting comparability

2) Tax effect on tax deductible adjustment items

Note 6 Consolidated net interest-bearing debt

SEK M	Mar 31 2022	Mar 31 2021	Dec 31 2021
Other interest-bearing liabilities, current	512	2,196	475
Other interest-bearing liabilities, long-term	2,685	4,893	2,795
Provisions for pensions, interest-bearing	3,015	3,257	3,378
Lease liabilities	1,093	992	1,036
Interest-bearing liabilities	7,305	11,337	7,685
Less cash and cash equivalents	-4,319	-5,691	-4,076
Net interest-bearing debt	2,986	5,646	3,609

Note 7 Key figures for the Group

	Jan-Mar	Jan-Mar	Jan-Dec
Financial and operative key figures	2022	2021	2021
Key figures based on Getinge's financial targets
Organic growth in net sales, %	-6.4	12.6	-4.8
Earnings per share 1), SEK	1.96	2.36	10.90
Other operative and financial key figures
Organic growth in order intake, %	-4.4	-22.8	-3.0
Gross margin, %	49.4	49.9	50.2
Selling expenses, % of net sales	18.7	18.4	17.0
Administrative expenses, % of net sales	13.7	12.9	12.3
Research and development costs, gross % of net sales	5.9	4.6	4.4
Operating margin, %	12.6	15.6	16.2
EBITDA, SEK M	1,218	1,408	6,185
Average number of shares, thousands	272,370	272,370	272,370
Number of shares at the end of the period, thousands	272,370	272,370	272,370
Interest-coverage ratio, multiple	49.5	34.9	47.5
Net debt/equity ratio, multiple	0.11	0.24	0.14
Net debt/Rolling 12m adjusted EBITDA, multiple	0.5	0.7	0.5
Operating capital, SEK M	28,664	31,482	28,561
Return on operating capital, %	16.5	18.2	17.3
Return on equity, %	11.9	16.5	12.9
Equity/assets ratio, %	58.4	51.7	56.5
Equity per share, SEK	97.38	85.13	92.43
Number of employees	10,892	10,745	10,729

1) Before and after dilution

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. Accordingly, the alternative performance measures should be considered 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.

	Jan-Mar	Jan-Mar	Jan-Dec
Adjusted gross profit, SEK M	2022	2021	2021
Gross profit Add-back of:	3,053	3,080	13,580
Depreciation, amortization and write-downs of intangible assets
and tangible assets	208	205	813
Other items affecting comparability	-	-	-
Adjustment for write-downs included in other
items affecting comparability	-	-	-
Adjusted gross profit	3,261	3,285	14,392
	Jan-Mar	Jan-Mar	Jan-Dec
Adjusted EBITDA, SEK M	2022	2021	2021
Operating profit (EBIT)	780	960	4,371
Add-back of:
Depreciation, amortization and write-downs of intangible assets and
tangible assets	396	382	1,542
Amortization and write-down of acquired intangible assets	41	67	273
Other items affecting comparability	-	-37	473
Acquisition and restructuring costs	17	90	95
Adjustment for write-downs included in other items affecting
comparability and restructuring costs	-	-	-
Adjusted EBITDA	1,235	1,461	6,754
	Jan-Mar	Jan-Mar	Jan-Dec
Adjusted EBITA, SEK M	2022	2021	2021
Operating profit (EBIT)	780	960	4,371
Add-back of:
Amortization and write-down of acquired intangible assets	41	67	273
Other items affecting comparability	-	-37	473
Acquisition and restructuring costs	17	90	95
Adjustment for write-downs of acquired intangible assets included in
other items affecting comparability and restructuring costs	-	-	-
Adjusted EBITA	839	1,079	5,212
	Jan-Mar	Jan-Mar	Jan-Dec
Adjusted EBIT, SEK M	2022	2021	2021
Operating profit (EBIT) Add-back of:	780	960	4,371
Other items affecting comparability	-	-37	473
Acquisition and restructuring costs	17	90	95
Adjusted EBIT	797	1,012	4,939
	Jan-Mar	Jan-Mar	Jan-Dec
Adjusted net profit for the period, SEK M	2022	2021	2021
Net profit for the period	538	652	3,000
Add-back of:
Amortization and write-down of acquired intangible assets	41	67	273
Other items affecting comparability	-	-37	473
Acquisition and restructuring costs	17	90	95
Adjustment for write-downs of acquired intangible assets included in
other items affecting comparability and restructuring costs	-	-	-
Tax items affecting comparability	-	-	-
Tax on add-back items	-16	-33	-209
Adjusted net profit for the period	581	738	3,632

The calculation of adjusted earnings per share, before and after dilution, attributable to the Parent Company's shareholders, is based on the following information:

Earnings (numerator), SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Adjusted net profit for the period	581	738	3,632
Adjusted net profit for the period, attributable to non-controlling interest	-5	-8	-31
Adjusted net profit for the period, attributable to the Parent Company shareholders, which form the basis for calculation of adjusted earnings per share	576	730	3,601
Number of shares (denominator)	Mar 2022	Mar 2021	Dec 2021
Weighted average number of ordinary shares for calculation of adjusted earnings per share (thousands)	272,370	272,370	272,370
Adjusted earnings per share, SEK	2.11	2.68	13.22

Note 8 Acquisitions

Acquisitions in 2022

In January 2022, all of the participations in German development company Irasun GmbH, domiciled in Munich, were acquired. Irasun develops products for venous drainage and temperature control, which can be used in combination with heart lung machines and equipment for extracorporeal life support (ECLS). The products are not yet commercially available but in the long term are intended to strengthen the Group's offering in innovative solutions for surgical perfusion. The purchase price amounted to SEK 77 M, of which SEK 62 M pertained to goodwill that is attributable to strategic advantages in the form of growth opportunities and a broader product range. The acquisition of Irasun did not have any material effect on Getinge's earnings. The costs of the acquisition amounted to SEK 2 M and were charged to earnings for 2021 and 2022. At the time of publication of this report, the acquisition analysis was still preliminary.

Note 9 Restatement of comparative figures

All net sales of DPTE®-BetaBags in Life Science are recognized as consumables instead of capital goods as from January 1, 2022. Comparative figures for 2021 have been restated.

Restatement of the distribution of net sales between capital goods and consumables.

Per quarter in the Group, SEK M	Jan-Mar 2021	Apr-Jun 2021	Jul-Sep 2021	Oct-Dec 2021
Net sales reclassified from capital goods to consumables	224	238	249	258
Restated net sales of capital goods	2,641	2,531	2,405	3,715
Restated net sales of consumables	3,528	4,055	3,901	4,272
Total	6,169	6,587	6,306	7,987
		Jan-Jun	Jan-Sep	Jan-Dec
Accumulated in the Group, SEK M	Jan-Mar 2021	2021	2021	2021
Net sales reclassified from capital goods to consumables	224	462	711	969
Restated net sales of capital goods Restated net sales of consumables	2,641 3,528	5,173 7,583	7,577 11,484	11,292 15,757

Per quarter in Life Science, SEK M	Jan-Mar 2021	Apr-Jun 2021	Jul-Sep 2021	Oct-Dec 2021
Net sales reclassified from capital goods to consumables	224	238	249	258
Restated net sales of capital goods	340	436	395	557
Restated net sales of consumables	427	446	472	486
Total	767	882	866	1,043
	Jan-Mar	Jan-Jun	Jan-Sep	Jan-Dec
Accumulated in Life Science, SEK M Net sales reclassified from capital goods to consumables	2021 224	2021 462	2021 711	2021 969
Restated net sales of capital goods	340	776	1,171	1,727
Restated net sales of consumables	427	873	1,344	1,830

Parent Company financial statements

Parent Company's income statement

SEK M	Jan-Mar 2022	Jan-Mar 2021	Jan-Dec 2021
Net sales	47	50	271
Administrative expenses1)	-58	-56	-302
Operating loss	-11	-6	-31
Result from participations in Group companies	-	-	1,820
Interest income and other similar income2)	0	0	1
Interest expenses and other similar expenses2)	-41	-59	-263
Profit after financial items	-52	-65	1,527
Appropriations	-	-	102
Taxes	1	1	-29
Net profit/loss for the period3)	-51	-64	1,600

1) In previous reports, net sales and administrative expenses were presented net on the same line.

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

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

Parent Company's balance sheet

SEK M	Mar 31 2022	Mar 31 2021	Dec 31 2021
Assets
Intangible assets	6	21	8
Tangible assets	4	6	4
Participations in Group companies	28,783	28,090	28,795
Deferred tax assets	95	107	94
Long-term receivables from Group companies	119	-	-
Current receivables from Group companies	93	97	233
Current receivables	37	35	36
Cash and cash equivalents	1,093	1,500	1,330
Total assets	30,230	29,856	30,500
Equity and liabilities
Equity	21,751	20,955	21,802
Long-term liabilities	1,170	-	1,170
Other provisions	19	35	15
Current liabilities to Group companies	7,037	7,364	7,238
Current liabilities	253	1,502	275
Total equity and liabilities	30,230	29,856	30,500

Definitions

Financial terms

Operating capital: Average total assets with add-back of cash and cash equivalents, other provisions, accounts payable and other non-interest-bearing liabilities.

Return on operating capital: Rolling 12 months' adjusted EBIT in relation to operating capital.

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

Gross margin: Gross profit in relation to net sales.

Adjusted gross profit: Gross profit with add-back of depreciation, amortization and write-downs and other items affecting comparability.

EBIT: Operating profit.

Adjusted EBIT: Operating profit (EBIT) with add-back of acquisition and restructuring costs and other items affecting comparability.

EBITA: Operating profit (EBIT) with addback of amortization and write-down of acquired intangible assets.

Adjusted EBITA: EBITA with add-back of acquisition and restructuring costs and other items affecting comparability.

EBITA margin: EBITA in relation to net sales.

EBITDA: Operating profit (EBIT) with addback of amortization, depreciation and write-downs.

Adjusted EBITDA: EBITDA with add-back of acquisition and restructuring costs and other items affecting comparability.

EBITDA margin: EBITDA in relation to net sales.

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

Free cash flow: Cash flow from operating activities and investing activities, excluding acquisitions and divestment of operations.

Consumables: Products that are continuously consumed as well as service, spare parts and similar items.

Adjusted earnings per share: Adjusted net profit for the period attributable to Parent Company shareholders in relation to average number of shares.

Items affecting comparability: Comprises acquisition and restructuring costs and other items affecting comparability. Other items affecting comparability are significant revenue/expenses that impact comparability between accounting periods. These items include, but are not limited to, write-downs, disputes and major gains and losses attributable to divestments of assets or businesses.

Capital goods: Durable products that are not consumed when used.

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

Organic change: A financial change adjusted for currency, acquisitions and divestments of businesses.

Adjusted net profit for the period: Net profit for the period with add-back of amortization and write-down of acquired intangible assets, acquisition and restructuring costs, other items affecting comparability and tax effect of add-back of income-statement items.

Adjusted profit before tax: Profit before tax for the period with add-back of amortization and write-down of acquired intangible assets, acquisition and restructuring costs and other items affecting comparability.

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

Interest-coverage ratio: Rolling 12 months' adjusted EBITDA in relation to rolling 12 months' net interest.

Operating margin: Operating profit (EBIT) in relation to net sales.

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

Currency transaction effect: Exchange of current year's volumes of foreign currency at this year's exchange rates, compared with the exchange rates in the preceding year.

Medical terms

Sterilizer: A device to eliminate microorganisms on surgical instruments, usually by high temperature with steam.

DPTE®-BetaBags: Bag that ensures contamination-free transfer of components.

ECMO: Extracorporeal membrane oxygenation, meaning oxygenation outside the body through a membrane. Put simply, a modified cardiac and respiratory machine that exchanges oxygen and carbon dioxide, like an artificial lung.

Endoscope: Equipment for visual examination of the body's cavities, such as the stomach.

Endovascular: Vascular treatment using catheter technologies.

Extracorporeal life support: Oxygenation of the patient's blood outside the body (extracorporeal) using advanced medical technology.

Hemodynamic monitoring: Monitoring the balance between blood pressure and blood flow.

Cardiopulmonary: Pertaining or belonging to both heart and lung.

Cardiovascular: Pertaining or belonging to both heart and blood vessels.

Artificial grafts: Artificial vascular implants.

Low temperature sterilization: A device used to sterilize surgical instruments which cannot be sterilized with high temperature steam. It is mainly used for instruments used in the minimal invasive and robotic surgery.

NAVA: Neurally Adjusted Ventilatory Assist (NAVA) identifies the electric activity that activates the diaphragm and using these signals adapts the ventilation to the patient's respiratory rhythm.

Perfusionist: A healthcare professional who operates the heart–lung machine during surgery.

Stent: A tube for endovascular widening of blood vessels.

Vascular intervention: A medical procedure conducted through vascular puncturing instead of using an open surgery method.

Ventilator: Device to help patients breath.

Geographic areas

Americas: North, South & Central America. APAC: Asia, excluding Mille East, and Pacific.

EMEA: Europe, Middle East and Africa.

Teleconference

A teleconference with President & CEO Mattias Perjos and CFO Lars Sandström will be held on April 26, 2022 at 10:00-11:00 a.m. CEST. Please see dial in details below to join the conference:

SE: +46 8 505 583 66 UK: +44 333 300 92 71 US: +1 631 913 14 22

A presentation will be held during the telephone conference. To access the presentation, please use this link:

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

A recording of the teleconference will be available for three days via the following link: https://tv.streamfabriken.com/getinge-q1-2022

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 preliminary dates for financial communication are provided below:

July 19, 2022	Q2 Report 2022
October 19, 2022	Q3 Report 2022
February 1, 2023	Q4 Report 2022

Contact

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

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

This information is such that Getinge AB must disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on April 26, 2022 at 8:00 a.m. CEST.

With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 130 countries. Getinge has been listed on Nasdaq OMX Stockholm, Nordic Large Cap since 1993 and is included in the OMXS30 index of the 30 most actively traded shares.

Getinge AB (publ) │ Lindholmspiren 7a, SE-417 56 Gothenburg, Sweden │Tel: +46 (0)10 335 0000 │E-mail: info@getinge.com │ Corp. Reg. No.: 556408-5032 │ www.getinge.com