Getinge 2018 Annual Report
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Passion for life 2018 Annual Report CONTENTS Passion for life Introduction This is Getinge 1 Year in brief 2 Sometime in life, we all need to seek healthcare. At Comments by the CEO 6 Getinge, we have a long tradition of creating innovations that improve people’s quality of life – and save lives. We Business environment think it is the most important job in the world. and market trends Global value creation 10 Trends and business drivers 12 Market overview 14 Strategy and targets Strategy 18 Targets 20 R&D 22 Sales 24 Quality 25 Operations Acute Care Therapies 28 Surgical Workflows 32 Life Science 36 Sustainability Sustainable value creation 42 Ethics 46 Employees 48 Environment 50 Annual Report Administration Report 52 Corporate Governance Report 56 Proposed appropriation of profit 66 Financial statements 67 Notes 72 Auditor’s report 115 Other information Sustainability notes 119 GRI index 122 The share 124 Multi-year overview 126 Group companies 131 Definitions 135 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: Mickaël Fresnay and Jason Courtin, DPTE® Transfer System Fitters at Getinge’s production facility in Vendôme, France. 2018 ANNUAL REPORT Introduction Market Strategy Operations Sustainability Annual Report Other This is Getinge The world is facing major challenges, one of which is the possibility to provide people with high-quality and effective healthcare. The Earth’s population is increasing, while we are also living longer, which increases the pressure on healthcare. According to the WHO, lifestyle diseases, such as cardiovascular diseases are one of the primary causes of death in the world. The risk of being exposed to infection, outside or within the hospital environment, also impacts our everyday life. Getinge is deeply committed to finding solutions to these challenges and thereby enhancing people’s quality of life. This is achieved by Getinge providing its customers with the necessary knowledge, technology and resources to achieve the optimal clinical outcomes and, ultimately, to save lives. How Getinge contributes We work to ensure that all people and society have access to the best possible healthcare. We contribute to this through improvements for patients and professionals in hospitals and institutions in life science using technology, infrastructure design and workflow expertise. In addition, we are at our customers’ side, ready to provide technical support, training, on-site consultation and financial ser- vices. Our operations are conducted in the following three business areas. 25,000 Acute Care Therapies No. of customers The offering contains solutions for cardiac, pulmonary and vascular therapies, and a broad selection of technologies and therapies for life support in acute health conditions, as well as respirators for mobile ventilation, and portable, 24.2 acute treatment of cardiac and pulmonary patients. Surgical Workflows Net sales (SEK billion) Products and solutions to optimize quality, safety and capacity use of sterilization departments and operat- ing rooms. The product portfolio contains, for example, operating tables and lights and systems for the cleaning, disinfection and sterilization of instruments, and advanced 4.9% hospital IT systems. Organic growth in Life Science net sales Equipment, technical expertise and consultation to prevent contamination in pharmaceutical and medical device production. The business area also works to ensure research integrity in biomedical research and in simplifying qualification processes. 2018 ANNUAL REPORT 1 Passion for life 2018 in brief New business area – Life Science The Life Science organization, which was formerly part of Surgical Workflows, has been a separate business area since January 1, 2018. Launch of the S-8668T washer-disinfector A new model in the 86 washer-disinfec- tor series, the S-8668T, was launched in September with the aim of improving the cleaning capacity in central sterile supply departments. The turbo technology, with multitasking function, in the S-8668T means that the processing time can be reduced by up to 25%, leading to increased productivity and reduced environmental impact. Flow-c – a new anesthesia machine New patient transfer system In June, a new, compact anesthesia for the multifunctional hybrid machine was launched for the safe and operating room cost-effective treatment of patients. Flow-c PILOT, the very first patient transfer is based on the reputable Servo ventilator solution for multi-modality operating and the same innovative technology as rooms, was presented in May. The new Flow-i, which ensures superior ventilation patient-centered transfer system enables performance, with the power and precision the transfer of patients between imaging required for all patient categories. systems and treatment rooms without GSS Sterilizer series for Life Science repositioning. PILOT is part of many In June, two models of sterilizers were innovative results of Getinge’s strategic launched for customers in Life Science. partnership with Siemens Healthineers. GSS R is aimed at biomedical research and GSS P at pharmaceutical production. Result of EOLIA study Provision for and divestment of biosurgery business The ECMO to Rescue Lung Injury in Severe In October, Getinge announced a provision of SEK 1.8 billion for expected costs associated ARDS (EOLIA) trial was the first randomized with the liability claims filed in the US and Canada against the subsidiary Atrium Medical’s multicenter trial with ECMO at 64 centers surgical mesh implants, which are used, for example, in the surgical treatment of hernias. The worldwide. The results demonstrated that suits consist of individual lawsuits, consolidated state cases and consolidated multi- the care of the patient with appropriate ven- district federal litigations. The first trials are expected to take place in late 2019 and early tilation management combined with planned 2020. The biosurgery business will be divested to HJ Capital 1, parent company of SeCQure early extra corporeal membrane oxygenation Surgical Corporation, conditional upon the customary official approval and other condi- (ECMO) is an effective strategy for treatment tions of completion. of patients suffering from severe acute respi- ratory distress syndrome (ARDS). 2 2018 ANNUAL REPORT Introduction Market Strategy Operations Sustainability Annual Report Other New President of Surgical Workflows business area Key figures 2018 2017 Stéphane Le Roy was appoint- Order intake, SEK M 24,347 23,228 ed President of the Surgical Workflows business area and Net sales, SEK M 24,172 22,495 joined the Getinge Executive Adjusted EBITA (SEK M) 2,689 3,108 Team in November. Stéphane Adjusted EBITA margin, % 11.1 13.8 Le Roy most recently served as the Regional President of South Adjusted earnings per share, SEK 5.91 7.87 West Europe within Getinge’s Net debt/equity ratio, multiple 0.64 0.65 global sales organization. Equity/assets ratio, % 45.3 47.0 Equity per share, SEK 72.16 72.72 Synthetic options Organic growth in net sales All Board members elected by the AGM and all members of the % Getinge Executive Team received an offer in May to purchase syn- thetic options in Getinge issued by Carl Bennet AB. Getinge will 5 In 2018, Getinge’s sales increased have no costs related to the program. A total of 3,153,889 synthetic 4 by 7.5%, of which 4.9 % organically, which is a growth rate not seen for options were acquired at a price considered to correspond to the 3 many years. For the year before, market value. The market value of the options at the time of the 2 2017, organic growth was 1.3%. transaction was estimated to be approximately SEK 21.8 M. 1 2017 2018 Sales per region Americas, 39% (SEK 9,530 M) EMEA, 39% (SEK 9,439 M) APAC, 22% (SEK 5,203 M) A bright future – Maquet PowerLED II To strengthen the offering of operating room lighting, Maquet Sales per business area PowerLED II was launched, featuring world-leading technology that improves working conditions for surgeons and hospital personnel. Acute Care Therapies, 54% (SEK 13,013 M) Agreement with the Brazilian Life Science, 9% Federal Public Prosecutor's Office (SEK 2,194 M) Getinge reached an agreement with the Brazilian Federal Public Surgical Workflows, 37% Prosecutor’s Office (Ministério Público Federal) on a Leniency (SEK 8,965 M) Agreement mainly related to the manipulation of tender proce- dures by Getinge’s subsidiary in Brazil in 2004-2015. The agreement entails that Getinge will pay a company fine corresponding to approximately SEK 276 M (BRL 121.8 M). The amount is covered by the provision announced in March 2018. Read more about this in the Administration Report. 2018 ANNUAL REPORT 3 Passion for life Getinge’s solutions address the challenge that today’s bypass patients have a high risk profile. 4 2018 ANNUAL REPORT Introduction Market Strategy Operations Sustainability Annual Report Other CASE – BYPASS Solutions that save hearts every day In the case of coronary stenosis, medication or stents are often the primary treatment option. However, sometimes a bypass operation is required. Getinge’s broad product portfo- lio and comprehensive knowledge bank have solutions that facilitate each step of the treatment. Bypass is the most common surgery challenge that today’s bypass patients have conducted by heart surgeons the world a high risk profile due to other diseases over. This is a major procedure, with the that coexist with coronary artery disease, patient often being admitted the day before which could lead to increased surgical the operation and it can take time to fully complexity, greater risk of complications recover afterwards. During the operation, and higher healthcare costs. the patient is under anesthetic and a heart- The portfolio offers equipment and aids lung machine is also often used. for all stages of the bypass procedure The procedure entails that new blood – both the preparatory work, the actual vessels are connected to the heart by being operation and the post-operative care in sown to the coronary artery, beyond the the intensive care unit.