Getinge AB (publ)

Welcome to the Jettinga Q4 Report 2025 presentation. During the Q&A 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 and welcome everyone to today's earnings call here with me I have our CFO Agnetha Palmin. We will start the conference today with our performance in the fourth quarter and then reflect a bit on the full year and our expectations for 2026 and onwards before ending with a Q&A. So we can move directly to page number two please. So let's first look at the development of our longer term strategic KPIs. You can see that we continue to clearly track in line with our plans to increase the share of sales from recurring revenue, accelerating the share of sales from high margin products like our Paragonics offering, our ECLS portfolio, the consumables with infection controls, and also beta bags inside our sterile transfer segment in life science. This is all supported by solid and effective quality processes as well, which is extremely important in our industry, obviously. So sales from recurring revenue now makes up about two thirds and high margin products a little bit more total revenue. When it comes to quality, the number of field actions in relation to sales has decreased significantly. And we see this positive trend also sequentially continue in the fourth quarter. These improvements should, of course, be achieved through responsible leverage and an attractive long-term return on invested capital. We can move to page number three, please. So if we then zoom in on the fourth quarter of last year and some of the key takeaways from the quarter, we managed to beat last year's record quarter and grow top line organically, which I think is really good. Net sales grew by 1.2% organically with positive development in most BAs and regions, and our order intake increased 2.3% organically. We then look at adjusted gross and EBITDA margins. They were down in the quarter mainly due to the strong headwind from currency and tariffs. And adjusting for the over 1 billion second currency and tariff headwind in 2025, the EBITDA margin for the full year was considerably higher than 2024, signaling that the underlying performance of the business is strong and developing according to plan. We have solid cash flow and we remain in a very strong financial position with our financial leverage well below 2.5 times EBITDA. And the Board of Directors has proposed a dividend of 4.75 SEK per share. We can then move to page number four, please. So we then look at some of the key activities and events in the quarter and start with what we offer our customers. It's usually our strongest quarter and last year's significant amount of shipments that went out in the last week of the quarter, last week of the year. So really good collaboration with our customers overall. And this is the reason we managed to reach record high organic sales in the quarter as well. I'm also very happy to see that our intense product development efforts have resulted in several important product launches during the quarter. In life science, we have announced the integration of Siemens Open and Flexible User Interface in the new generation of washer sizes, and this will support streamlined operations, efficient data management, and secure data integrity for our customers. And also in surgical workflows, we launched the utility-efficient Aquadis 44 washer-disinfector, which helps hospitals reduce costs and meet their environmental targets. And within surgical workflows, we also launched Automatic, which is a new family of next-generation automated solutions. which combines smart robotics, intelligent conveyor systems and advanced software to achieve both safer, more consistent and less labor-intensive sterile processing. If we then look at the sustainability and quality aspect of this, we continue to make good regulatory progress in the quarter. In our implants business, we received pre-market approval for the high cost covered stent in large diameter for two new lengths. So this will help us become more competitive in the US market. Our PLS set, which is used in extracorporeal circulation for cardiac and pulmonary support, received CEA certificate under the EU MDR. And also happy to see that PICO, our minimally invasive hemodynamic monitoring system, is now included in the European Society of Intensive Care Medicine's guideline on circulatory shock. I also want to highlight again that our quality KPIs such as audit findings per audit for quality systems and also field actions in relation to sales continue to trend positively. So those are the main activities and events for the fourth quarter and we can then move to page number five. So looking at then our top-line performance, we can see that we had solid progress in acute care therapies and in surgical workflows. Order intake grew 2.3% organically, and in acute care therapies, this increase was mainly attributable to good performance in ECLS consumables, in transplant care, and we also saw growth in endoscopic vessel harvesting and in intradict balloon pumps. Life science organic order intake declined in the quarter due to softer development in WIS, which is our washer, isolator, and sterilizer business, and also within bioprocessing. The organic order intake for surgical workflows grew strongly in the quarter, mainly on the back of strong development in infection control consumables and also operating room equipment, generally within surgical workplaces. From a sales perspective, we had a 1.2% organic increase in sales, and we had both acute care therapies and also surgical workflows showing low single-digit growth in organic sales. Acute care therapies, the growth came mostly from good performance when it comes to ventilators globally. We saw transplant care with good momentum and also ECRS therapy. In surgical workflows, organic net sales increased primarily thanks to growth in operating tables and in infection-controlled consumables. And when we look at life science, we had an organic net sale decrease, mainly due to lower sales in bioprocessing and in the WIS business that I mentioned that was on order intake. Growth in sterile transfer, which is our most important subcategory in life science, continued strong. We can then move over to page number six, and I'll hand over to you, Agnetha.

Thank you, Mattias. It's positive to see that our activities come through a strong underlying performance. Despite very negative impact from tariffs and ethics in the quarter, we managed comparatively well with decent margins. On adjusted gross profit for the group, adjusted gross profit amounted to 5,037,000,000 SEK in the quarter, primarily on the back of currency and tariffs. Adjusted gross margin was down by 1.1 percentage point in total, in spite of healthy contribution from price and mix. On adjusted EBITDA, adjusted gross profits effect on the EBITDA margin was minus 0.5 percentage points due to what I just mentioned. Adjusted for currency, OPEX had a slight impact on the margin in the quarter. FX impacted severely by minus 1.2 percentage points in the quarter. And all in all, this resulted in an adjusted EBITDA of 1,809,000,000 SEK and a margin of 17.8%. Let's move to page 7, please. We remain in a solid financial position. Free cash flow amounted to 1.2 billion SEK in the quarter. Compared with last year, free cash flow was impacted by changes in working capital. At the end of Q4, net debt was 9.8 billion SEK. If we adjust for pension liabilities, we are at 7.5 billion SEK. This brings us to a leverage of 1.5 times adjusted EBITDA, which is well below the 2.5 times which we have set as an internal threshold. If we adjust for pension liabilities, leverage is at 1.1 times adjusted EBITDA. Cash amounted to approximately 3.4 billion by the end of the quarter. So all in all, we can conclude that the financial position continues to be strong. Let's move to page eight, please. And back to you, Mattias.