November 21, 2018 Gothenburg, Sweden
Getinge Capital Markets Day
Today at Getinge’s Capital Markets Day the President & CEO Mattias Perjos, together with the Getinge Executive Team, will present the strategy and related Business Area plans needed to improve company performance.
Getinge’s net sales has been growing 6.2% organically since beginning of 2018, which is a result of decisions and related actions taken in 2017. This is a natural first step in a turn-around in a growing market. To progress further, productivity is addressed, in order to increase margins and cash flows.
“Getinge is not performing on par with competition on margins. One part is due to structural differences, but a significant share is related to improvements on short and mid-term, and that is what we are targeting with our actions going forward”, says Mattias Perjos, President & CEO, Getinge.
The actions needed to capture opportunities differ between the Business Areas and will be presented by each President. The following action areas, however, apply to all Business Areas:
- Improve innovation and portfolio management – to ensure pricing power and productivity in the value chain
- Harmonize processes to capture efficiency in the value chain
- Improve factory footprint and logistic structure – in order to enhance service level and reduce cost
- Continued implementation of Global Quality Management System and Enterprise Resouce Planning System – to ensure compliance and drive synergies
One example of actions within the Business Area Acute Care Therapies is the transfer of production from Fairfield (US) and Mahwah* (US) to Wayne (US) in 2020-2021 and closing of the site in Cajamar (Brazil) in 2019.
The financial targets that Getinge disclosed in 2017 will be unchanged going forward:
- Average annual organic growth in net sales: 2-4%
- Average earnings per share growth: >10%
- Getinge’s dividend policy is to pay dividends of 30-50% of net profit to shareholders
"We see good opportunities for improved profitability and cash generation, which contributes to a solid financial situation, and this is including potential payments related to reported provisions. We also have committed unutilized credit facilities of approximately SEK 7 billion, of which the majority expire in five years. This means that we have significant safety margins," ends Mattias Perjos.
In addition to Mattias Perjos, presentations will be given by Carsten Blecker, Chief Commercial Officer, Lars Sandström, CFO, Lena Hagman, EVP Quality & Regulatory, Jens Viebke, President Acute Care Therapies, Harald Castler, President Life Science and Stéphane Le Roy, President Surgical Workflows.
* Some operations will stay in Mahwah
About Getinge’s Capital Markets Day
Date: November 21, 2018
Time: Presentions will start at 12:00 CET and is expected to end approximately 16:00 CET. Registration will begin at 11:00 CET.
Address: Lindholmen Conference Centre, Lindholmspiren 5 in Gothenburg, Sweden
Speakers: Mattias Perjos, President & CEO, Lars Sandström, CFO, Carsten Blecker, Chief Commercial Officer, Jens Viebke, President, Business Area Acute Care Therapies, Harald Castler, President, Business Area Life Science, Stéphane Le Roy, President, Business Area Surgical Workflows and Lena Hagman, EVP Quality & Regulatory
Webcast: Follow the Capital Markets Day on webcast: https://www.youtube.com/watch?v=sXPXXsRipIQ&feature=youtu.be
Presentations: Download the presentations here: https://www.getinge.com/int/about-us/investors/reports-presentations/2018/
Jeanette Hedén Carlsson, Executive Vice President Communications & Brand Management
Phone: +46 734 244 797
Lars Mattsson, Head of Investor Relations
Phone: +46 734 244 692
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 08:30 CET on November 21, 2018.