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Announcement of the financial statements for 2000

ANNOUNCEMENT OF THE FINANCIAL STATEMENTS FOR 2000 * Strong profit in Q4. The operating profit excluding SPP's refunds rose by 15.4% to SEK 277.7 million (240.6) * The operating profit for the full year excluding SPP's refunds at same level as last year * Orders received totalled SEK 5,243.3 million (4,932.2) * Net sales amounted to SEK 5,253.5 million (4,884.7) * The profit before tax excluding SPP's refunds was SEK 600.5 million (636.2) * The EPS after full tax was SEK 10.30 (10.52) * The proposed dividend per share is SEK 3.50 (3.50) * The acquisition of Maquet and ALM makes Getinge the world's leader in surgical systems The quarter The year's Q4 performance was exceptional for all areas regarding profits and volumes and was the best in the Group's history. The Extended Care business area's volumes have progressed particularly well on the UK and US markets, which both had a weak start to the year. Demand on the other European markets has continued to progress strongly. The profit for Q4 is very good and means that the profit for the year is at last year's level after a poor start to the year. The Infection Control business area finished the year well by reporting strong volumes and good demand continuing in the US from both hospital and life science customers. Markets in Western Europe reported better order positions than in previous quarters. The business area's Q4 profit was satisfactory and continues to be affected by conditions in the US, where growth has been rapid during the year, but where operating margins are lower. Outlook The level of demand in the Extended Care business area has significantly improved in the US market. New product launches and a gradual expansion of the sales organization means the business area looks set for a positive trend in the coming year. The assessment for the Infection Control business area is that the US and developing markets will progress well, while the demand level in Western Europe continues to be difficult to assess. The effects of the cost- cutting measures carried out during the year coupled with new product launches will contribute to improve the company's competitive strength. The recently formed Surgical Systems business area, which has rapidly grown to become a significant part of the Group's business, is expected to contribute to an improved EPS over the coming year. Surgical Systems business area The acquisition of the world's two leading manufacturers of operating tables and surgical lighting systems, respectively, has very rapidly laid the foundations for an attractive and expansive business area - Surgical Systems. The business area's aim is to provide its customers with effective, flexible and ergonomic product systems for surgical workplaces. The systems consist of operating tables, surgical lights and ceiling service units. The ambition is to build up a world-leading position in surgical systems equipment and to create our own, effective sales and marketing organization on the important European, US and Japanese markets. Following the acquisitions of Maquet and ALM, the Group's sales in the business area will be over SEK 2 billion. Market shares for operating tables, surgical lights and ceiling service units will be 40%, 20% and 6% respectively and make the business area one of the global leaders in surgical systems. A large part of the market for surgical systems and related products can be regarded largely as unstructured and the opportunities of continuing to expand via acquisitions are considered to be good. Synergy and structure The combination of Getinge, Maquet and ALM, creates excellent conditions for rationalization and continuing to boost volumes. The business area intends to co-ordinate and optimise its production and distribution structures which will lead to annual cost savings of around SEK 140 -150 million annually over a two-year period. Besides cost synergy, volume synergy will also have a positive impact on the business area's profit figure over a long-term perspective. In deciding to focus the business area's activities on operating tables, surgical lights and ceiling service units, Ortho Maquet which develops and markets surgical robotic systems for orthopaedic implant surgery, will be sold. Financial information The total purchase price for the acquisition of Maquet and ALM is around SEK1,150 million. The reserve for restructuring will amount to maximum around SEK 575 million. The cash flow-affecting part of the restructuring reserve is about SEK 385 million. The goodwill value is estimated at SEK 1,470 million. Maquet's net sales for the last financial year stood at about SEK 1,310 million. The operating profit was about SEK 120 million (excluding Ortho Maquet). The comparative figures for ALM are net sales of around SEK 660 million and an operating profit of around SEK 45 million. Maquet's balance sheet has been included in the consolidated accounts as of 31 December 2000. Maquet's profit will be included in the consolidated income statement from 1 January 2001 and ALM's profit from 1 February 2001. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: