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Getinge Group. Net Sales 10.9 billion SEK . INFECTION CONTROL Production units 10 Sales companies 2 5. EXTENDED CARE Production units 5 Sales companies 2 4. MEDICAL SYSTEMS Production units 5 Sales companies 2 3. Shaping Health Care of tomorrow. Shaping Health Care of tomorrow.
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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
Infection Control- Fact sheet 2004 numbers Revenues 3,524 MSEKEBITA margin 15.2 %
Extended Care – Fact sheet 2004 Numbers Revenues 2,701 MSEKEBITA margin 18.9 %
Medical Systems – Fact sheet 2004 Numbers Revenues 4,620 MSEKEBITA margin 15.4 %
Getinge has gained a competitive position in health care that will be further strengthened by current trends Financial deficits and unaffordable health care insurances Cost containment Increased co-payment Shift in power balance Our customers in health care respond to the changes by… Increased use of competition Technology breakthrough Increased management of reimbursements Fundamental increase in demand
Our customers in the healthcare industry respond to the changes by… Financial Targets • 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
Positive Outcomes A competent solution provider in well defined niches of the health care industry – offeringsolutions that enhance customers’ productivityover time
Strategic Cornerstones • Global leadership
Infection Control Sterilization No 1 Disinfection No 1 Extended Care Patient Handling No 1 Hygiene Systems No 1 Wound Care No 4 Medical Systems Surgical Tables No 1 Surgical Lights No 1 Ceiling Pendants No 3 Cardiopulmonary No 3 Ventilation No 1 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
Strategic Cornerstones • Global leadership • Innovative solutions
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 IntegratedInfection Controlsolutions SterilizationDisinfectionLoad HandlingIT-systems Integrated solutions for health care ergonomics Hygiene SystemsPatient HandlingWound Care Integratedsolutions for surgical interventions Surgical TablesSurgical LightsPendants
Competitive position Our competitive position will be based on cost leadership and innovations in solutions System Getinge Innovations Products Cost Innovation Leadership
Strategic Cornerstones • Global leadership • Innovative solutions • Direct Sales and Service approach
Direct Sales & Service Approach 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
Financial Targets 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
CAGR 23% Results 1993 - 2004
Financial Targets by Business Area Target A2004 Organic growth 4 – 5 % EBITA margin ~16 % 15.2 % Target A2004 Organic growth ~7 % EBITA margin ~ 19 % 18.9 % Target A2004 Organic growth ~ 5 % EBITA margin ~17 % 15.4 % GROUP Target A2004 Organic growth ~ 5 % + EBITA margin ~17 % + 16.1 %
Strategy for Growth 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 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 through improved 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
Solid base - bright future 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 ExtendedCare 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 MedicalSystems 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