getinge group
DESCRIPTION
Getinge Group. Net Sales10.9 billion SEK. INFECTION CONTROL Production units10 Sales companies2 5. EXTENDED CARE Production units 5 Sales companies2 4. MEDICAL SYSTEMS Production units5 Sales companies2 3. Shaping Health Care of tomorrow. Shaping Health Care of tomorrow. - PowerPoint PPT PresentationTRANSCRIPT
Getinge Group
Shaping Health Care of tomorrow
Net Sales 10.9 billion SEK
INFECTION CONTROL
Production units 10
Sales companies 25
EXTENDED CARE
Production units 5
Sales companies 24
MEDICAL SYSTEMS
Production units 5
Sales companies 23
Shaping Health Care of tomorrow
Customer Segment70%
22%8%
Hospital 70%Longterm Care 22%Life Science 8%
Business Area
32%
25%
43%
Infection Control 32%Extended Care 25%Medical Systems 43%
Geographical regions
29% 55%
11%
5%
North America 29%W Europe 55%Asia Pacific 11%RoW 5%
Revenues 3,524 MSEK
EBITA margin 15.2 %
Customers
60%
10%
30%
HospitalElderly CareLife Science
Product Lines62%
38%
Sterilization 62%
Disinfection 38%
Geographical
45%
36%
12%7%
W Europe 45%US&Canada 36%Asia&Australia 12%RoW 7%
Infection Control- Fact sheet 2004 numbers
Revenues 2,701 MSEK
EBITA margin 18.9 %
Extended Care – Fact sheet 2004 Numbers
Customers
30% 55%
15%
Hospital 30%Elderly Care 55%Home Care 15%
Product Lines
37%
46%
17%
Patient Handling 37%Hygiene Systems 46%Wound Care 17%
Geographical65%
31%3%
1%
W Europe 65%US&Canada 31%Asia&Australia 3%RoW 1%
Revenues 4,620 MSEK
EBITA margin 15.4 %
Medical Systems – Fact sheet 2004 Numbers
Customers
100%
Hospital
Product Lines *
36%
15%
6%
27%
16%
Tables 36%Lights 15%Pendants 6%Cardio-Pulmonary 16%Critical Care 27%
Geographical
58%
20%
16%6%
W Europe 58%US&Canada 20%Asia&Australia 16%RoW 6%
Getinge Group Development
Financial deficits andunaffordable health care insurances
Shift in power balance
Technology breakthrough
Fundamental increase in
demand
Increased management of reimbursements
Increased use of competition
Increased co-payment
Cost containment
Our customers in health care respond to the changes by…
Getinge has gained a competitive position in health care that will be further strengthened by current trends
Health care policy makers will increasingly look for privatisation and market testing as tools to achieve cost efficiency
Activity based reimbursements continue to drive process efficiency
Focus on core competencies in medical processes
Elective care will be provided in outpatient facilities
Financial TargetsOur customers in the healthcare industry respond to the changes by…
Positive Outcomes
A competent solution provider in well defined niches of the health care industry
– offering solutions that enhance customers’ productivity over time
Global leadership
Strategic Cornerstones
Global leadership
We strive to be a global No 1 or No 2 in the product areas focused.Market leadership will help us attain cost leadership through scale
Infection Control Sterilization No 1Disinfection No 1
Extended Care Patient Handling No 1Hygiene Systems No 1Wound Care No 4
Medical Systems Surgical Tables No 1Surgical Lights No 1Ceiling Pendants No 3Cardiopulmonary No 3Ventilation No 1
Global leadership
Innovative solutions
Strategic Cornerstones
Innovative Solutions
We strive to combine the strength of our leading product positions and the depth of our know-how to offer innovative solutions that lead to process improvements for our customers
SterilizationDisinfectionLoad HandlingIT-systems
Hygiene SystemsPatient HandlingWound Care
Surgical TablesSurgical LightsPendants
Integratedsolutions for surgical
interventions
IntegratedInfection Control
solutions
Integrated solutions for health care
ergonomics
Competitive position
Cost Innovation
Products
System
Innovations
Leadership
Getinge
Our competitive position will be based on cost leadership and innovations in solutions
Global leadership
Innovative solutions
Direct Sales and Service approach
Strategic Cornerstones
A direct approach to our customers is crucial to our succcess Getinge will strive to establish own distribution companies whenever justifiable Solution provider
Transfer and exchange of know-how
Control all parameters that define customer satisfaction
Control the profitable after-sales market
Direct Sales & Service Approach
Growth is the backbone of our development to remain a dynamic and attractive company and to fund our targeted expansion
Growth in pretax earnings > 15% p a
Cash-flow to sustain external growth rate > 10% p a
Financial Targets
CAGR 23%
0
2000
4000
6000
8000
10000
12000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
0
200
400
600
800
1000
1200
1400
Invoiced sales *) Profit before tax
Results 1993 - 2004
Target A2004Organic growth 4 – 5 %
EBITA margin ~ 16 % 15.2 %
Target A2004Organic growth ~ 7 %
EBITA margin ~ 19 % 18.9 %
Target A2004Organic growth ~ 5 %
EBITA margin ~ 17 % 15.4 %
GROUP Target A2004Organic growth ~ 5 % +
EBITA margin ~ 17 % + 16.1 %
Financial Targets by Business Area
2004 Financials
Getinge AB - Financials (MSEK)
2004 2003 Change 2004 2003 Change
Q 4 Q 4 12 Mon 12 Mon
Orders received 2,981 2,675 11% 10,812 9,154 18%
Net sales 3,477 2,929 19% 10,889 9,160 19%
EBITA 682 544 25% 1,757 1,449 21%
EBITA % 19.6% 18.6% 16.1% 15.8%
EBIT 621 477 30% 1,505 1,257 20%
EBIT % 17.9% 16.3% 13.8% 13.7%
Profit before tax 574 432 33% 1,309 1,095 20%
Getinge AB - Key figures (MSEK)
2004 2003 2004 2003
Q 4 Q 4 12 Mon 12 Mon
Operating Cash Flow, MSEK 584 556 1,878 1,980
Net debt, MSEK 4,705 4,852
Equity / Assets ratio, % 33.1% 29.3%
Net debt / Equity ratio, multiple 1.18 1.37
Interest cover, multiple 7.1 7.3
The Getinge group will reach its growth targets by: Development of existing positions
Organic growth
Bolt-on acquisitions
Acquisitions of new globally leading product lines that will strengthen our position as an innovative provider of solutions
Strategy for Growth
Strategy for growth 2004 – 2007 Infection Control
Principally organic growth supplemented by bolt-on acquisitions to reach new geographical territories, add new technologies in existing product lines
Strengthen solution provider capabilities
Focused approach towards the global Life Science industry
Geographical expansion
Continue to strengthen competitiveness throughimproved production structure and logistics
Strategy for growth 2004 – 2007 Extended Care
Principally organic growth on existing markets supplemented by bolt-on acquisitions to add new technologies in existing product lines
Total bed-side management in elderly care
Enter the hospital market / bariatric care
Improved supply chain for increased competitiveness
Strategy for growth 2004 – 2007 Medical Systems
Organic growth on existing markets and existing product lines Acquisitions of new globally leading product lines that will strengthen our position as an innovative solution provider with special emphasis on critical care and cardiac surgery
Position as provider of integrated solutions
Strengthen sales network in developing economies and North America
Continue to strengthen product leadership position
Develop Critical Care product portfolio through acquisitions
Getinge has gained a competitive position in its market that will be further strengthened by current trends
Infection Control is positioned to achieve solid organic growth over coming years. Efforts and activities to improve the production structure and logistics will strengthen competitiveness
Extended Care is establishing a product portfolio capable of delivering higher levels of organic growth. The hospital market for ergonomic solutions is an untapped opportunity that will be addressed
Medical Systems has created a strong base for continued external expansion in a dynamic environment. Significant scope for organic growth on emerging markets and in North America
Solid base - bright future