Getinge Interim Report January-June 2020: Making a Real Difference Together With our Customers

July 16,2020

"During this year's second quarter, we report a continued strong order intake and net sales of advanced ICU ventilators and ECMO therapy products for hospitals and Sterile Transfer products for the pharmaceutical industry," says Mattias Perjos, President & CEO Getinge. "We have received feedback from customers about the positive effect that our advanced ICU ventilators have had for treating COVID-19 patients, which is highly encouraging in our intensive efforts to gradually increase production of ventilators by 160% in 2020."

During the second quarter, Getinge has continued to work closely with the company's hospital and pharmaceutical customers to support them in their efforts to combat COVID-19. Getinge's greatest challenge remains ensuring access to components from its suppliers. The order intake increased organically by 17.5%, and sales rose by 9.1%, due to a very strong development in parts of Acute Care Therapies. The high volumes, combined with the productivity measures in recent years, resulted in increased profitability, strengthened free cash flow and lower net debt.

Products for cardiac and vascular surgery were negatively impacted by COVID-19 because planned procedures were postponed, but in June an improvement could be seen within this area as a rising number of hospitals started to work through the backlog that had accumulated during the pandemic. Getinge expects a slow recovery of capital goods for hospitals, which has impacted sales and profitability for Surgical Workflows this quarter and will do so for the remainder of 2020.

"I am very pleased with how Getinge has created new work methods internally and together with our customers," Mattias Perjos continues. "Finally, I would like to thank all hospital staff, our partners and all my colleagues around the world for the exceptional collaboration during this crisis - you are making an incredible difference in the fight against this pandemic."

April - June 2020 in brief

• Net sales increased organically by 9.1% and the order intake rose by 17.5% organically.

• Adjusted gross profit amounted to SEK 3,723 M (3,101) and the margin was 53.4% (49.4).

• Adjusted EBITA amounted to SEK 1,218 M (591) and the margin was 17.5% (9.4).

• Adjusted earnings per share amounted to SEK 3.07 (1.12).

• Cash flow after net investments amounted to SEK 1,368 M (576).

• Decision on restructuring measures that will contribute to annual savings of SEK 130 M, gradually realized from autumn 2020.