Focus is on organic growth and Getinge foresees an organic market growth of 2-4% on average during 2017-2020 in the addressable market.
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| [10-November-2017] |
| GOTHENBURG, Sweden, Nov. 10, 2017 /PRNewswire/ -- Following the strategic review and the proposed distribution and listing of the business area Patient & Post-Acute Care (now called Arjo), the Board of Directors of Getinge has decided on a revised strategy, new financial targets and present restated historical financial information for Getinge excluding Arjo. New financial targets As a result of the proposed distribution and listing of Patient & Post-Acute Care and the related area disinfection flushers, now called Arjo, the Board of Directors of Getinge has decided on new financial targets based on the revised strategy for Getinge excluding Arjo. Focus is on organic growth and Getinge foresees an organic market growth of 2-4% on average during 2017-2020 in the addressable market. Getinge’s organic growth in net sales is expected to increase gradually during 2018 and move closer to expected market growth on a run-rate basis by the end of 2018.
The new financial targets are valid from January 1, 2018. Revised strategy The priorities for Getinge going forward are to strengthen the product and service offering in prioritized segments for the customers within the business areas Acute Care Therapies and Surgical Workflows and continue to use the global salesforce to penetrate geographically with existing products. Furthermore, the company will put additional focus and continue to develop an attractive offering towards selected parts of the growing value segment. Getinge has also the intention to introduce Life Science as a separate Business Area as from January 1, 2018. “I am confident that our revised strategy and financial targets will create a more focused business and organization that is better positioned to develop market leading offerings for our customers,” says Mattias Perjos, President and CEO of Getinge. “The Life Science business has many similarities with our Infection Control business when it comes to technology, but given the customized solutions offering within this segment we believe this setup will better realize further growth opportunities”, he continues. Getinge excluding Arjo
Getinge restated financial information Getinge provides historical financial information excluding the discontinued operations within Arjo in two appendicies to this press release.
If the Extraordinary General Meeting on December 4, 2017, resolves on the distribution and listing of Arjo, Getinge will publish the results of the operations in Arjo separately, as discontinued operations in accordance with IFRS 5, in its year-end report, January 29, 2018. Costs for creating an independent Arjo and transaction costs Getinge has previously communicated that costs related to the planned distribution and listing and costs to create an independent Arjo are estimated to charge the group’s result with SEK 400-500 M for 2017. For the period January to September in the current year, Getinge’s result has been charged with SEK 360 M in respect of such costs. Of these, non-recurring restructuring costs in Arjo have accounted for SEK 144 M and increased operating costs in Arjo have accounted for the remaining SEK 216 M. In addition to the above costs, Getinge’s equity will be charged with transaction costs that are estimated to amount to approximately SEK 147 M excluding tax expenses. Telephone conference A telephone conference with Getinge’s President & CEO, Mattias Perjos, and Arjo’s President & CEO, Joacim Lindoff, will be held at 09:00-10:00 CET, November 10, 2017. Please see dial in details below to join the conference: Sweden: +46 (0)8 5065 3942 UK: +44 (0)330 336 9435 USA: +1 323 794 2551 Code: 3769823 A presentation will be held during the telephone conference. To access the presentation, please use this link: https://slideassist.webcasts.com/starthere.jsp?ei=1170039 Please join the event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code. A recording of the telephone conference will be available for 90 days via the following link: https://slideassist.webcasts.com/starthere.jsp?ei=1170039 This information is information that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on November 10, 2017. About Getinge Getinge is a global provider of innovative solutions for operating rooms, intensive-care units, sterilization departments and for life science companies and institutions. Based on our first-hand experience and close partnerships with clinical experts, healthcare professionals and medtech specialists, we are improving the every-day life for people, today and tomorrow. Appendix 1: Restated financial information - Getinge excluding Arjo The following tables show selected financial information for Getinge excluding Arjo (which represents the remaining business after the dividend), rolling 12 months, by the end of September 2017. Getinge excluding Arjo consists of the difference between Getinge’s and Arjo’s financial information adjusted for internal transactions. The information presented in the tables are not financial reports in accordance with IFRS and is thus not necessarily comparable to similar calculations in other companies and has some limitations as analytical tools. Consolidated income statement (SEK M) September 30, 2017 (R12) Getinge Arjo Getinge excl Arjo Net sales 1) 30,124 7,794 22,558 Cost of goods sold -15,800 -4,278 -11,750 Gross profit 14,324 3,516 10,808 Gross Profit Margin 47.6% 45.1% 47.9% Selling expenses -6,458 -1,444 -5,014 Administrative expenses -3,595 -1,191 -2,404 Research and development costs -728 -136 -592 Acquisition expenses -6 -2 -4 Restructuring and integration costs -1,175 -326 -849 Other operating income and expenses 50 39 11 Operating profit (EBIT) 2,412 456 1,956 EBIT Margin 8.0% 5.9% 8.7% Net financial items -651 -91 -560 Profit/ loss after financial items 1,761 365 1,396 Taxes -466 -99 -367 Net profit/ loss for the period 1,295 266 1,029
1) In Getinge excluding Arjo, sales to Arjo amounting to SEK 63 M is included, and in Arjo sales to Getinge excluding Arjo of SEK 165 M is included. In Getinge, all such internal sales are eliminated.
Balance sheet in summary after reallocation of net debt (SEK M) September 30, 2017 Getinge Arjo1) Getinge excl Arjo Assets Intangible assets 29,392 6,518 22,874 Tangible assets 4,105 1,079 3,026 Financial assets 1,365 469 896 Inventories 6,173 1,130 5,043 Accounts receivable 6,006 1,7532) 3,9964) Other current receivables 3,094 545 2,549 1,521 400 1,121 Cash and cash equivalents ------------- 51,656 11,894 39,505 Total assets Equity and liabilities Equity 23,755 5,209 18,546 Provisions for pensions, interest- bearing 2,981 27 2,954 Other interest- bearing liabilities 16,148 4,841 11,307 Other provisions 2,150 197 1,953 Accounts payable 1,792 5423) 9935) 4,830 1,078 3,752 Other non- interest- bearing liabilities ------------ 51,656 11,894 39,505 Total equity and liabilities
1) Arjo’s balance sheet has been adjusted for the following changes after September 30, 2017: - One intra-Group transfer to Getinge excluding Arjo, which reduced Arjo’s net debt. - Getinge made a shareholder contribution of SEK 1,203 M to Arjo. - Net recording of intra-group financial transactions, which will be replaced by external financing at the time of listing. 2) Including SEK 123 M Group-internal receivables eliminated in Getinge. 3) Including SEK 134 M Group-internal debt eliminated in Getinge. 4) Including SEK 134 M Group-internal receivables eliminated in Getinge. 5) Including SEK 123 M Group-internal debt eliminated in Getinge.
Cash-flow from operating activities (SEK M) September 30, 2017 (R12) Getinge Arjo Getinge excl Arjo Operating activities Operating profit (EBIT) 2,412 456 1,956 Add-back of amortization, depreciation and write-downs 2,670 799 1,871 Other non-cash items 55 30 25 Add-back of restructuring and integration costs 1) 914 171 743 Paid restructuring and integration costs -632 -61 -571 Financial items -651 -91 -560 -367 -144 Taxes paid -223 ---------- ---- 4,401 1,160 Cash flow before changes in working capital 3,241 Changes in working capital Inventories -813 -195 -618 Current receivables -867 -129 -738 745 -243 Current liabilities 988 ------------------- --- 3,466 593 Cash flow from operating activities 2,873
1) Excluding write-downs of fixed assets. Key figures September 30, 2017 (R12) Getinge Arjo Getinge excl Arjo EBITA 1 1), SEK M 4,311 891 3,420 EBITA 1 Margin, % 14.3 11.4 15.2 Net debt/ equity ratio, multiple 0.74 0.84 0.71 Equity/assets ratio, % 46.0 43.8 46.9 Net debt, SEK M 17,608 4,400 13,208 Net debt/ EBITDA 2), multiple 2.93 3.08 2.89 EBITDA, SEK M 5,082 1,255 3,827 Cash conversion, % 68.2 47.3 75.1 Earnings per share 3), SEK 5.23 1.09 4.14 Average number of shares, thousands 243,073 243,073 243,073 Number of employees 16,631 5,987 10,644
1) EBITA 1: EBITA before acquisition, restructuring and integration costs. 2) EBITDA: EBITDA before acquisition, restructuring and integration costs. 3) The calculation of earnings per share is based on the average number of shares in Getinge. As the average number of shares for Arjo and Getinge is not the same, Arjo reports other figures on earnings per share for the corresponding period. Appendix 2: Restated segment information - Getinge excluding Arjo As a consequence of the planned distribution and listing of Arjo, the historical financial information for Surgical Workflows has been recalculated. The adjustments mainly concern the disinfection flushers business in Arjo, previously reported in Surgical Workflows. In addition, Surgical Workflows has been adjusted for sales between Surgical Workflows and Arjo (eliminated in Getinge). Getinge will also continue to distribute Arjo products in some minor markets and these sales will be reported in Surgical Workflows. Q4 Q1 Q2 Q3 Jan-Sep 2017 2016 2017 2017 2017 Order intake SEK M Full Year 2016 3,492 2,975 3,109 2,845 8,929 Acute Care Therapies 12,059 ---------- ------ 3,020 2,404 2,414 2,857 7,675 Surgical Workflows 10,544 ---------- ------ 6,512 5,379 5,523 5,702 16,604 Remaining operations 22,603 ----------- ------
Q4 Q1 Q2 Q3 Jan-Sep 2017 2016 2017 2017 2017 Net salesSEK M Full Year 2016 3,649 2,825 3,094 2,621 8,540 Acute Care Therapies 11,804 ---------- ------ 3,785 1,986 2,275 2,323 6,584 Surgical Workflows 10,366 ---------- ------ 7,434 4,811 5,369 4,944 15,124 Remaining operations 22,170 ----------- ------
Q4 Q1 Q2 Q3 Jan-Sep 2017 2016 2017 2017 2017 Gross profitSEK M Full Year 2016 1,990 1,635 1,766 1,492 4,893 Acute Care Therapies 6,552 ---------- ----- 1,408 743 818 956 2,517 Surgical Workflows 3,846 ---------- ----- 3,398 2,378 2,584 2,448 7,410 Remaining operations 10,398 ----------- ------
Q4 Q1 Q2 Q3 Jan-Sep 2017 2016 2017 2017 2017 EBITA 1* SEK M Full Year 2016 923 557 638 458 1,653 Acute Care Therapies 2,326 ---------- ----- 831 -23 113 148 238 Surgical Workflows 1,173 ---------- ----- -65 -49 -49 -62 -160 Group Functions -224 ---------- ---- 1,689 485 702 544 1,731 Remaining operations 3,275 ----------- ----- *EBITA 1: EBITA before acquisition-, restructuring and integration costs Q4 Q1 Q2 Q3 Jan-Sep 2017 2016 2017 2017 2017 EBITSEK M Full Year 2016 704 405 12 271 688 Acute Care Therapies 1,000 ---------- ----- 690 -54 80 98 124 Surgical Workflows 885 ---------- --- -86 -49 -50 -65 -164 Group Functions -379 --------------- ---- 1,308 302 42 304 648 Remaining operations 1,506 ----------- ----- Contacts Jeanette Hedén Carlsson, Lars Mattsson, This information was brought to you by Cision http://news.cision.com The following files are available for download: http://mb.cision.com/Main/942/2387293/749323.pdf PDF http://news.cision.com/getinge/i/joacim-lindoff,c2271239 Joacim Lindoff http://news.cision.com/getinge/i/getinge---mattias-perjos,c2271240 Getinge -Mattias Perjos http://news.cision.com/getinge/i/joacim-lindoff,c2271241 Joacim Lindoff http://news.cision.com/getinge/i/mattias-perjos-,c2271242 Mattias Perjos
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Company Codes: Bloomberg:GETIB@SS, ISIN:SE0000202624, RICS:GETIB.ST, Stockholm:GETIB, OTC-PINK:GNGBY |
