Getinge AB (publ)

Welcome to the Jettinga Q1 Report 2025. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, CEO Matthias Peerjus and CFO Agneta Palmer. Please go ahead.

thank you very much welcome everyone to today's conference today we'll focus on first a quick look into our performance in the first quarter and then reflect a bit on the current market situation and our expectations for 2025. so we can jump directly to page number two please looking then at some of the key takeaways when it comes to the performance from the first quarter we do look back at a solid quarter when it comes to top line our order intake grew by 7.1 percent and it was 2.9 organic growth out of this our net sales increased by 10.7 percent in the quarter where organic growth was 6.2 percent The positive development was primarily attributed to acute care therapists and from a geographic perspective to the Americas. When it comes to the adjusted gross and EBITDA margins, they improved by about one percentage point in the quarter and this was mainly thanks to leverage from volume acquisitions, healthy price increases and positive mix as well. Currency was a headwind and weighed on the EBITDA margin in the quarter. When you look at our financial leverage, it's now back on a similar level to last year in spite of the increase in the debt level after the acquisition of Paragonic. So that means our financial position remains solid. We can then move to page number three, please. So I just wanted to touch briefly on some of the key activities and events during the first quarter of this year. Let's start with sustainability and quality. So securing compliant quality in our products and operations continues to be our highest priority. I'm happy now to see that the KPIs supporting these efforts are trending positively. We can see, for example, that both findings per regulatory audit and field corrections in relation to net sales are continuing to go down year on year. We also see a positive downward trend for our CO2 footprint in Scope 1 and 2, thanks to increased share of renewable electricity and gas. When it comes to the offering and our customers, so if we start with Paragonics, they continue their healthy growth journey since the acquisition last year. The latest product launch, the Kidney Vault, which is designed to protect the most in-demand organ during transportation, has been a success with positive user feedback. Furthermore, we also have now EU MDR approval for the large majority of products, which is an important milestone in the expansion outside of the US, which is an initiative that we're kicking off this year. The intended phase out of the product category surgical perfusion is following our plan. It impacts organic order intake and net sales negatively, but it's still expected to be accretive to margins already now in 2025. In life science, we launched our DPT Flex Alpha port, which is an important addition to our sterile transfer portfolio and an important part in serving our pharma customers in this important segment. We can then move over to page number four and our top line performance. Overall, as I said, good top line momentum, particularly strong top line performance in acute care therapies and in the Americas region. Our order intake grew 7.1% in the quarter, where 2.9% was organic growth. Acute care therapists grew high single-digit, coming mainly from ventilators in critical care and ECLS disposables within our cardiopulmonary product category. In spite of double-digit growth in sterile transfer, life science was significantly down when it comes to order intake, and this is mainly due to weak orders in the bioprocessing subsegment. Surgical workflows grew orders slightly thanks to continued strong performance in infection control. When it comes to sales, we grew 10.7% in the quarter, where of 6.2% was organic growth. Acute care therapists delivered double digit organic growth coming from the same categories as orders, so ventilators and ECLS disposables again. Life science was down by about 2% in the quarter in spite of growth in all product categories besides bioprocessing where the market globally has been challenging for some time now. Mitigating actions are ongoing to both reignite sales and also right side costs specifically when it comes to our bioprocessing structure. Surgical workflows was basically flat year on year all in all when zooming in infection controls consumables grew by almost 10% while sales was soft in digital health solutions and in surgical workplaces. With that we can move over to page number five and I'll hand over to you Agnetha briefly.

Thank you Mattias. So once again we see positive impact on the leverage that we get on margins when sales volumes go up. and restructuring efforts come into effect. Adjusted gross profit increased by about half a billion SEK to 4,337,000,000 SEK in the quarter, primarily on the back of volume, acquisitions, continued price increases and favourable mix. Gross margin was up by 0.8 percentage points in total, thanks to positive contribution from acute care therapists. On adjusted EBITDA margin, the positive effect from adjusted gross profit contributed by 0.3 percentage points, excluding currency effects. Thanks to those factors that I just mentioned. I'm pleased to see that we continue with a good trend on OPEX, which had a 1.5 percentage point positive impact on the margin in the quarter when adjusting for currency. And this was mainly due to operating leverage. FX had a negative impact on the margin in the quarter by minus 1.1 percentage point. So all in all, this resulted in an adjusted EBITDA of 1 billion 3 million SEK, improving on our margin about 1 percentage point year on year to 12.1%. Let's then move to page 6 please. Free cash flow decreased in the quarter to 0.2 billion SEK. Compared with last year, free cash flow was impacted by volume driven inventory increases, lower operating liabilities and some payments from last year's restructuring activities. There was also some unfavorable timing of accounts receivables compared to prior year. At the end of Q1, Nete amounted to 9.7 billion SEK. If we adjust for pension liabilities, we are at 7.3 billion SEK. So this brings us to a leverage of 1.4 times adjusted DBTA, which is well below the 2.5 times which we have as an internal threshold. If we adjust for pension liabilities, leverage is at 1.1 times adjusted DBTA. So this signals that we remain in a solid financial position and we are actually at the same leverage as last year, even though we have made investments in strategic acquisitions since then. Cash amounted to approximately 4.2 billion SEK by the end of the quarter. So all in all, we can conclude that the financial position continues to be strong. Let's then move please to page seven and back to you, Mattias.