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Passion for Life 2019 Annual Report CONTENTS Passion for life 2019 Annual Report CONTENTS Introduction This is Getinge 1 Global value creation 2 CEO comments 4 Business environment and strategy COLLABORATION Trends and business drivers 10 Market overview 12 Strategy 14 Targets 16 Strategic activities 18 Operations Acute Care Therapies 24 Surgical Workflows 28 Life Science 32 Sustainability A sustainable offer 38 Responsible sourcing 42 Employees 46 OPENNESS Business ethics 50 Annual Report Administration Report 54 Corporate Governance Report 58 Board of Directors 66 Getinge Executive Team 68 Guidelines for remuneration 70 Proposed appropriation of profit 72 Group Financial statements 73 Notes 78 Parent Company Financial statements 110 Notes 114 Auditor’s report 121 EXCELLENCE Other information Sustainability notes 126 GRI index 130 The Getinge share 132 Multi-year overview 134 Group companies 139 Definitions 143 Every care has been taken in the translation of this Annual Report. In the event of discrepancies, the Swedish original will supersede the English translation. Cover: Lisa Kuehn, working at Getinge’s OWNERSHIP production site in Rastatt, Germany. 2019 ANNUAL REPORT Business Environment Introduction & Strategy Operations Sustainability Annual Report Other Passion for life Sometime in life, we all need to seek health care. At Getinge, we have a long tradition of creating innovations that improve people’s quality of life – and save lives. We think it is the most important job in the world. This is Getinge The world is facing major challenges, one of which is the abil- ity to provide the increasing world population with safe and effective health care. People are living longer and, according to WHO, lifestyle diseases such as cardiovascular diseases are one of the primary causes of death globally. Getinge is committed to work to ensure that all people and societies have access to the best possible health care. The company helps its customers to meet their challenges in health care and life science institutions by providing knowl- edge, technology and resources to achieve optimal clinical outcomes and, ultimately, to save lives. 25,000 At Getinge we enable 130 No. of customers Sales in 130 countries Improved clinical outcomes Improved Reduced effectiveness risks 170 BSEK 90% Addressable of sales are made to hospitals market Enabling advanced health care and 10 % to pharma companies where it matters the most and research institutes Improved efficie y- and productivity CSSD – % Cath BSEK 2 4 ICU 26.6 Operating Lab Organic growth Room Net sales 2019 in addressable market 2019 ANNUAL REPORT 1 Global value creation For a more effective health care Getinge’s products and solutions contribute to a more effective and sustainable health care for patients and customers. This is also beneficial for employees, shareholders and society in general. It all starts with having the right passion, which is at the heart of our values. Getinge today What Getinge wants to achieve Customer oriented sales VISION organization To become the world’s most • 25,000 customers in 130 countries respected and trusted medical • A global distribution network with device company sales offices in 38 countries. • 90% of sales are made to hospitals with the ambition of contributing to better clinical results, quicker MISSION recovery and fewer patients being Getinge provides innovative affected by dangerous infections. products and solutions that • Pharmaceutical companies and re- enable better patient outcomes search institutes account for 10% of while enhancing health economics sales. In this area, the model is dif- ferent, with customized solutions for the elimination of contamina- tion risks in product development and manufacturing. VALUES Passion is at the heart of Established innovation processes our values • EcoDesign is used to develop sustainable products and solutions. • 4.7% of sales is spent on R&D. • Effective allocation of resources to attractive product segments. Certified and quality assured production Collaboration • Production in 7 countries, where 16 of 19 production units are certified according to ISO 14001. • A global Quality management system in place: GetAligned. Value based organization • An organisation driven by the passion to help customers and Ownership Openness patients. • Uses a global Performance Development Process to inspire performance. • Equal development opportunities to all 10,500 employees and high standards in business ethics. Excellence Financial stability • Growth in net sales, earnings and free cash flow. • Solid financial situation and stable ownership structure. 2 2019 ANNUAL REPORT Business Environment Introduction & Strategy Operations Sustainability Annual Report Other Business model The value created Strategic priorities Getinge’s contribution to health care Top priority Quality and sustainability as an integral part of the organization Together with its customers, Getinge contributes to more effective health Focus areas care, which frees up resources for the treatment of more patients. One goal is to improve the use of operating 1 2 3 4 rooms so that one more operation can Drive productivity Secure leadership Capture global Capitalize on be conducted per day per operating and efficiency by strengthening growth having one truly room. Getinge’s products are part of enhancement the offering global brand the solution to a decrease of the num- ber of health care related infections. Enablers Production and products Build a proud global organization with engaged and performance driven people Getinge are committed to contribute to a more sustainable society and the goal is to reduce the company’s prod- Our Business Areas ucts’ environmental impact across their total life cycle. New and updated non-financial goals are set and the ACUTE CARE THERAPIES progress is continuously monitored. Read more about Getinge’s sustain- World-leading solutions for life sup- ability work on page 36. port in acute health conditions. Solu- tions for cardiovascular procedures Our relations and a broad selection of products and therapies for intensive care. Getinge’s value creation rests on long- term relationships with shareholders, customers, distributors, suppliers and employees. SURGICAL WORKFLOWS Products and solutions to serve as an end-to-end partner for optimizing the quality, safety and capacity usage of the sterile supply departments and operating rooms. LIFE SCIENCE Equipment, expertise and consul- tation to prevent contamination in pharmaceutical and medical device production, and to strengthen integrity of results in medical research. 2019 ANNUAL REPORT 3 Comments by the CEO Value to customers and society Engaged employees and hard work throughout the organization are the factors behind Getinge’s continued growth and improved profitability during the year, says President and CEO Mattias Perjos. Customer inquiries for sustainable products are increasing, entirely in line with the company’s strategic direction. The focus going forward is on continuing the implementation of the strategy in a structured manner, strengthening the operations and creating added value for customers and society. How would you describe 2019 in brief? cesses performed by, for example, HR and the cost efficiency of the OR. In steam ster- “I am proud of an organization driven by the Finance, while also running a program to ilization, we have been at the forefront of passion to help customers and patients. consolidate our product portfolio.” developments and innovative solutions for I believe that we took many steps in the almost 90 years now. The latest sterilizer is right direction in 2019, which was also Are there any areas that you called GSS610H and was launched during reflected in our results. Our organic growth are less satisfied with? the year.” was 3.9%, we improved profitability and we “Our Surgical Workflows team has worked have a strong and stable cash flow thanks hard during the year and I believe they Sustainability is a high priority to the improved management of working deserved a faster return on their efforts, area at Getinge. What progress capital. These are well-deserved achieve- particularly in the US market where our has been made during the year? ments for all of our employees and were customer offering has great potential going “Sustainability for us is not simply an initia- of course down to hard work across the forward. I also believe that it is important to tive from senior management but instead entire organization. continue to improve our internal productiv- forms an integral part of the operations A strong culture of quality is the foun- ity in general throughout the organization and is something that we must all focus dation of operating in our industry and it since there is still much untapped potential on. We saw many good results, such as a is therefore gratifying that we have been in this area.” continued reduction in our carbon emis- successful with the remediation measures sions from production. Another aspect is carried out at our two German plants, in How successful are we in innovation that we are seeing an increase in inquiries addition to the enhancements already and product development? for sustainable products from our cus- made in our US plants. “We are moving in the right direction in this tomers, which we are incorporating into I am also happy with our heightened respect, and all of our product launches product development through for example focus on service, which makes us an even were well received by customers during EcoDesign.” better partner for
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