Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents Administration Report Operation and structure Getinge is a global provider of products and solutions for operating rooms, intensive-care units and sterilization departments serving 39 countries and with proprietary production in nine countries. Operations are conducted in three business areas - Acute Care Therapies, Life Science and Surgical Workflows. Sales take place through our own subsidiaries and distributors in 133 countries. Approximately 72% of sales are conducted through the Group's sales companies and the remaining 28% are sold by agents and distributors in markets where Getinge often lacks its own representation. Production is conducted at a total of 21 facilities in France, China, the Netherlands, Poland, the UK, Sweden, Türkiye, Germany and the US. Financial overview Net sales increased 4.6% during the year to SEK 28,292 M (27,049). Net sales decreased organically by 5.4%. In Acute Care Therapies, sales amounted to SEK 15,285 M (15,527), corresponding to an organic decline of 12.2%. Life Science's net sales increased organically by 3.6% to SEK 4,026 M (3,558). Surgical Workflows' sales in 2022 amounted to SEK 8,981 M (7,965). Net sales increased organically by 3.6%. Americas represented the Group's largest market, accounting for 40% (38) of sales, followed by EMEA at 36% (37). APAC account- ed for 24% (25) of sales. Adjusted EBITA Adjusted EBITA before restructuring and acquisition costs and other items affecting comparability amounted to SEK 4,281 M (5,212). Operating profit The Group's operating profit amounted to SEK 3,626 M (4,371). Adjusted for restructuring and acquisition costs and other items affecting comparability, operating profit amounted to SEK 4,096 M (4,939), corresponding to 14.5% (18.3) of net sales. Net financial items Net financial items amounted to SEK-154 M (-183), of which net interest items comprised SEK-151 M (-142). Profit before tax The Group's profit before tax declined to SEK 3,472 M (4,188). Taxes The Group's tax expense amounted to SEK-956 M (-1,187), entailing a tax rate of 28% (28). Tied-up capital Inventories amounted to SEK 6,232 M (4,767) and accounts receiv- able to SEK 5,275 M (4,695). The return on equity was 8.9% (12.9). Goodwill totaled SEK 22,512 M (19,681) at the end of the fiscal year. Investments Investments in intangible assets and tangible assets amounted to SEK 1,136 M (930). Investments primarily pertained to product development, production facilities, production tools and IT projects. Investments related to acquisitions of businesses amounted to SEK 365 M (715), primarily relating to the acquisition of Fluoptics SAS. Financial position and equity/assets ratio Consolidated net interest-bearing debt fell to SEK 2,602 M (3,609). The equity/assets ratio amounted to 58.5% (56.5) and the net debt/equity ratio to 0.09 (0.14). Equity at year-end amounted to SEK 30,453 M (25,176). Cash flow Cash flow from operating activities amounted to SEK 3,367 M (6,560). Restructuring activities and productivity improvements Restructuring costs in 2022 amounted to SEK 206 M (61), primarily aimed at adjusting production capacity and the sales organization, and reducing the cost base. These costs are mainly related to personnel reductions and savings from the activities are expected to generate effects throughout 2023. Class of shares and share data For information regarding trading of shares in the company, the number of shares, shareholders, the classes of shares and the rights associated with these classes of share in the company, refer to the Getinge share section on pages 178-179. Events during the year Russian invasion of Ukraine Getinge conducts operations in Russia in accordance with inter- national sanctions and regulations via a small sales company. The activities in the country are currently limited to fulfilling existing customer commitments and selectively participating in tender processes. Since Getinge's mission is to save lives irrespective of nationality and background, Getinge has decided not to fully with- draw from the Russian market. The Group's sales and net assets in Russia and Ukraine in 2022 represented less than 1% of the Group's total net sales and equity. Despite the limited direct impact on Getinge's operations in Russia and Ukraine, the Russian invasion of Ukraine may never- theless have a negative impact on the development of the Group's earnings and position. It is difficult at the current time to assess the future consequences of the conflict and its impact on the Group. However, Getinge does not conduct any manufacturing operations in either Russia or Ukraine and has no major suppliers in these countries. A potential negative effect is that the supply of natural gas at the Group's plants in Poland and Germany may be restricted, and mitigating measures have been taken to alleviate the effects of such a situation. 58
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