Getinge Industrier AB

Annual Report 2000 Getinge Industrier AB

Business concept Getinge is a medical technical Group that acts as a competent problem-solver, through its products and services, for customers in the health care, geriatric care and industry sectors. The Group's products, services and competence will contribute, in a tangible way, to quality enhancement and the reduction of customers' costs.

Financial objectives ¥ Profit growth, measured as the profit before tax, will be 15% annually over one business cycle, and this shall be attained through a combination of organic growth and acquisitions. ¥ Growth through acquisitions averaging 10% per year will be mainly financed by the Group's own cash flow.

Strategy The Getinge Group strives to attain and maintain market-leading positions in its chosen niche markets. Organic growth will be the basis for the Group's expansion. This means: ¥ Focused efforts on sales of complete systems Ð in which the breadth and depth of the Group's competence benefits customers Ð through the Group's own sales companies. ¥ Active product development. ¥ Strong focus on developing sales of maintenance and services.

Getinge provides broad solutions comprising of products, services, consulting, training and maintenance in specific areas, such as infec- tion control, surgery or ergonomics. By focusing on customer benefits in terms of qualitative and quantitative improvements, the price of services diminishes in importance. Acquisition of closely related or complementary operations represents an important addition to organic growth. The focus will be on three areas: ¥ Geographic expansion. ¥ Product acquisitions as a complement to internal product development. ¥ Acquisitions as a way of establishing and broadening new business areas that are assessed as being of interest from a growth or sector perspective. Synergies with existing areas of operation are decisive in this context. 2000 in brief

Orders received totalled SEK 5,243.3 million (4,932.2)

Net sales totalled SEK 5,253.5 million (4,884.7)

The operating profit for the full year, excluding the SPP refund, was at last year’s level

Earnings per share after full tax was SEK 10.30 (10.52)

Dividend per share proposal is SEK 3.50 (3.50)

Infection Control Business Area Extended Care Business Area Surgical Systems Business Area

• The acute health care customer • Gradual increase in sales volumes in the • Foundation laid for the new business segment's volume trend was good in US improved demand in the UK during area, Surgical Systems. Acquisitions of the US, Scandinavia and Far East the second half of the year Maquet (Germany) and ALM (France) makes Getinge a world-leader in • Sales success for Getinge's new • New product launches have been very Surgical Systems inspection system, AGS well received. Decisive investments in product development coupled with • The recently-established Surgical product acquisitions means that the Systems business area is expected to product portfolio is very strong make a positive contribution to the EPS during the coming year

1 Contents Annual General Meeting and reports

The year in brief 1 The Annual General Meeting will be held on Monday

Annual General Meeting 23 April 2001 at 4 p.m. in Getingehallen and reports for 2001 2

Five-year summary 3 Notification Shareholders wishing to participate at the Annual General Meeting should be registered Getinge – a presentation 4 in the shareholders' register kept by Värdepapperscentralen VPC AB, (the Swedish Central Securities Depository & Clearing Organization), no later than 12 April 2001, and Comments by the President 6 should notify Getinge Industrier's head office, at the address below, of their intention to participate, no later than 17 April 2001. Group overview: Getinge Industrier AB Infection Control 8 Information Dept. Box 69 Extended Care 16 S-310 44 Getinge Tel: +46 35 - 15 55 00 Surgical Systems 22 Shareholders whose shares are registered in the name of a nominee must have temporari- Getinge's personnel 28 ly registered their shares in their own name with VPC , to be able to participate at the Annual General Meeting, well in advance of 12 April 2001. Getinge's shares 29 Dividend IT strategies 30 The Board of Directors and President propose that a dividend of SEK 3.50 (3.50; 3.25) per share be paid, totalling SEK 159.0 million. The proposed record date is 26 April Getinge and the environment 31 2001. VPC anticipates being able to forward the dividend to shareholders on 2 May 2001.

Financial risk management 32 Reports for 2001 Getinge Industrier AB will be publishing the following reports in Swedish and English Directors’ report 33 during the year:

Proposed allocation of profits 35 ¥ The 1st quarterly report for 2001 will be issued in conjunction with the Annual General Meeting on 23 April 2001 in Getinge Income statements 36 ¥ Interim report for the first six months of 2001: 16 July 2001 ¥ 3rd quarterly report for 2001: October 2001 Balance sheets 37 ¥ Press release of the financial statements for 2001: January 2002 ¥ Annual Report for 2001: April 2002 Funds statement 38 The reports can be ordered from: Comments and notes 39 Getinge Industrier AB Information Dept. Audit report 49 Box 69 S-310 44 Getinge The Board, auditors and Tel: +46 35 - 15 55 00 Group management 50 Information about this Annual Report Addresses The Getinge Industrier Group is referred to in this Annual Report as Getinge. Figures in brackets refer, unless otherwise specified, to 1999's activities and after a semicolon to corresponding figures for 1998. Swedish krona is abbreviated (SEK) throughout this doc- ument. Millions of kronor are written as SEK xx million. All amounts are given in SEK million, unless otherwise specified. Information given in the Annual Report concerning markets, competition and future growth constitutes Getinge's assessment based mainly on material compiled within the Group. This document is essentially a translation of the Swedish language version. In the event of any discrepancies between this translation and the original Swedish document, the latter shall be deemed correct. 2 Five-year summary

The Group 1996 1997 1998 1999 2000 Net sales SEK m 1) 2,961.2 3,661.0 4,345.0 4,884.7 5,253.5 of which overseas sales, % 1) 93.8% 94.1% 94.5% 94.5% 95.0% Operating profit SEK m 1) 497.2 547.9 652.9 692.2 697.0 4) Operating margin, % 1) 16.8% 15.0% 15.0% 14.2% 13.3% 4) Profit before tax, SEK m 497.1 501.5 602.6 636.2 623.7 Net profit for the year, SEK m 392.8 401.3 476.7 477.7 467.8 Operating capital, SEK m 1,809.9 2,535.2 2,610.6 2,988.2 3,356.8 Shareholders' equity, 31 December, SEK m 1,093.0 1,372.8 1,221.0 1,560.8 1,931.0 Return on operating capital, % 29.6% 23.4% 25.0% 23.2% 20.8% 4) Return on equity, % 42.3% 36.4% 39.1% 35.1% 27.6% Net debt/equity ratio, multiple 1.02 0.78 1.41 0.97 1.98 Equity/assets ratio, % 31.3% 36.5% 27.6% 35.7% 24.2% Interest cover, multiple 7.5 7.8 8.0 9.2 6.8 Net investments in tangible fixed assets, SEK m 2) 103.3 126.2 131.8 167.4 110.3 No. of employees, 31 December 3,495 3,481 3,724 3,812 5,298 EPS after full tax, SEK 8.65 8.83 10.50 10.52 10.30 Cash flow per share, SEK per share 3.53 2.67 -0.30 9.62 1.96 Shareholders' equity, SEK per share 24.06 30.22 26.88 34.36 42.51 Dividend, SEK per share 2.50 2.75 3.25 3.50 3.50 3) Market price, 31 December, SEK per share 134.50 126.00 122.00 96.00 112.50 Dividend yield, % 1.9% 2.2% 2.7% 3.6% 3.1%

1) This line of figures does not include the Distribution business area (Lifco) disposed of in 1998. 2) Excluding rental equipment. 3) As per the proposal by the Board and President. 4) Excluding the refund from SPP of SEK 23.2 million

Definitions

Cash flow per share/Cash flow after investment in tangible fixed assets divided by the average number of shares. Dividend yield/Dividend in relation to the market share price on 31 December. EPS after full tax/Net profit for the year divided by the average number of shares. Equity/assets ratio/Equity plus minority interests in relation to balance sheet total. Interest cover/Profit after net financial items plus interest costs in relation to interest expenses. Net debt/equity ratio/Interest-bearing liabilities and pension provisions less liquid founds in relation to shareholders’ equity. Operating capital/Total assets, less liquid funds and non-interest-bearing provisions and liabilities, based on the average for the year. Operating margin/Operating profit in relation to net sales. Return on equity/Net profit for the year in relation to average shareholders' equity. Return on operating capital/Operating profit in relation to average operating capital.

3 Getinge – a presentation

THE GETINGE GROUP The foundation for Getinge was laid in Extended Care Getinge is an expansive medical technical 1904 by Olander Larsson. The company The Patient Handling and Hygiene Systems Group active in three areas: systems for manufactured and sold equipment for business units provide systems and prod- infection control, products and aids for use in agriculture. The first step ucts to customers in the acute and geriatric hygiene and lifting for use in the care of towards the current business orienta- care sectors that enable labour-saving lift- the elderly and disabled, plus equipment tion came in 1932 when the first steril- ing and more comfortable hygiene care for for surgical workplaces. Together, the izer was produced and sold. In 1964, people with restricted mobility. Sterilization and Disinfection business the company was bought by Electrolux The business area also supplies prod- units form the Infection Control business and became part of an internationally ucts to prevent and treat pressure sores or area. The Hygiene Systems, Patient active group. Rune Andersson and Carl bedsores (hereafter called pressure sores) Handling and Wound Care business units Bennet acquired the company in 1989 which are one consequence of patients' come under the Extended Care (formerly and a period of expansion and growth restricted mobility. Geriatrics) business area. The Surgical began. Getinge became a listed compa- Geriatric care is the most important Systems business area encompasses the ny in 1993. In 1997, Carl Bennet AB customer category, but acute health care Surgical Tables and Surgical Lights busi- became the principal owner and Johan has good growth potential, especially in ness units. Malmquist became President and CEO. the Patient Handling and Wound Care The Getinge Group, which reported Expansion and growth have continued business units. sales of SEK 5.3 billion in 2000, consists and the business has broadened, so The business area's products are sold to of some 80 companies with around 5,300 that today it also includes products and customers in some 50 countries under the employees at year-end in 27 countries. equipment for elderly care and operat- Arjo and Pegasus brands. Distribution is About 95% of Getinge's sales are made ing theatres. mostly through the Group's own sales outside Sweden Ð spread over some 100 companies. countries. Infection Control The Getinge Group has through organic The business area supplies customers in Surgical Systems growth, but primarily acquisitions, grown industry and the health care and geriatric The Surgical Systems business area was strongly since its listing in 1993. Today, care sectors with complete solutions to created at the start of the year through the the Group has a world-leading position prevent the emergence and spread of acquisitions of Maquet and ALM. The within its three business areas. Getinge is infections. Products are marketed under business units Surgical Tables and active in a relatively mature market and the Getinge and Lancer brands. Surgical Lights, which also includes the Group's future growth will continue to Ceiling Service Units*, provide customers come from both organic growth and the The business area serves three customer in health care with complete systems for acquisition of companies. segments; Industry, which comprises the operating theatres. The products are The Group is controlled through a pharmaceutical industry, medical technical designed to create rational, efficient and matrix organization in two dimensions, in industry, biotechnology and laboratories, ergonomically correct working conditions which the business units make up one as well as the rest of industry for different types of surgical procedure. dimension and the market/sales companies Health care, which mainly concerns acute The product range is broad and covers the other. The orientation of the organiza- health care products for open surgery as well as the tion's structure is to keep decision-making Geriatric care, covering hospitals and growing market for minimally-invasive routes as short as possible. nursing homes, and care of the disabled. surgery. The products are sold mainly through the area's own sales companies in the most The Group's net sales in 2000 by business area, business unit and important markets under the Maquet and customer segment ALM brands and are represented in some 100 markets. Infection Control 59% Extended Care 40% Surgical Systems* Sterilization 40% Hygiene Systems 17% Surgical Tables Organization Disinfection 19% Patient Handling 15% Surgical Lights The Getinge Group is made up of three Wound Care 8% business areas. A business area consists of several business units as well as a sales and market organization.

* Ceiling consoles that enable the mounting Industry 17% Acute health care 38% Geriatric care 45% of monitors and similar on walls and ceilings to minimize the amount of equipment that Other activities 1% * New business area from 1 January 2001 stands on the floor in an operating theatre.

4 Getinge – a presentation

CEO

Extended Care Infection Control Surgical Systems

Hygiene Patient Wound Market Sterilization Disinfection Market Market Surgical Surgical Market Systems Handling Care Rest of the world Americas tables lights Rest of the world

Each business unit manager has an through its own sales companies, a con- ing number of surgical procedures are overall global responsibility for a product scious choice that is decisive for system minimally-invasive, which is driving area, with an emphasis on manufacturing sales and which ensures that knowledge development and creating a need both for and product development. All sales com- and competence is maintained at a high new surgical equipment and modern panies belonging to a business area report level, and that marketing takes on a more equipment for infection control. This is a to a market manager, who is responsible long-term character. The direct servicing trend that will be prominent for a long for distribution, sales and marketing of the of the customer base means that the prof- time ahead. business area's products. itable after-market can be kept within the The Group will place considerable For North and South America, the Group. emphasis on the building up of a world- Group has a joint market, sales and serv- leading business in Surgical Systems dur- ice organization for Infection Control and Product development ing the next two years. Initially, the focus Surgical Systems, which both have health Product development is a cornerstone in will be on the three product areas: surgical care as its most important customer. the Group's organic growth. Getinge does tables, surgical lights and ceiling service Getinge's organization is flat and deci- not strive to run product development units. In the longer term, Getinge has the sion-making is heavily decentralized. totally single-handed, but instead co-oper- opportunity to grow broader in the surgi- Considerable emphasis is placed on local ates with competent, external partners. cal field and, looking further ahead, within management and its competence to react Acquisition is a complement to internal intensive care. rapidly and independently. The group cur- product development. A number of com- The base for the Group's growth shall rently has some 80 operative units. plementary product acquisitions have been be organic. This means continued efforts made in recent years. focused on the sales of complete systems, Production active product development, as well as The Getinge Group's production is cur- Competitors innovative marketing programmes. rently carried out at 20 manufacturing Among the competitors, there is only the The acquisitions that have marked facilities in nine countries. US company, Steris, that can measure up Getinge's expansion in recent years should The business unit's manufacturing will to Getinge in terms of size and range be considered as an important complement be directed towards value-creating produc- breadth. Steris is particularly strong in the to organic growth. Getinge continually tion, and components that are not critical US in products for health care. evaluates conditions for collaborating with will be outsourced to subcontractors. All In addition, there is MMM in hospital customers or service providers in business units are actively working Germany, Johnson & Johnson in the US, the running of sterilization centres in the towards the outsourcing of non-critical and Sakura in Japan. The Italian company, health care sector. production stages, and the emphasis is Fedegari, is the biggest competitor on the shifting increasingly towards develop- industry side. For products to geriatric The Group's sales by ment, design, assembly and quality assur- care, competitors include Sunrise and geographic area: ance. The supplier base for the Infection HillRom in the US. 2000 1999 Control and Surgical Systems business Sweden 5% 6% areas is mainly in North and Central Future expansion Rest of Scandinavia 3% 3% Europe, whereas the Extended Care busi- Surgical Systems, which in a short period Rest of Western Europe 42% 44% ness area already has a significant and of time has become an important part of the Eastern Europe 2% 1% growing proportion of its suppliers in the Group, works closely with both patients North America 39% 38% Far East and Eastern Europe. and medical staff. Demand for the busi- Asia, Australia 7% 6% ness area's products is growing steadily in Rest of the world 2% 2% Distribution line with the trend for a continuing grow- Total 100% 100% About 95% of the Group's sales are made ing need for surgical procedures. A grow-

5 Comments by the President

fter a poor start to the year, the business unit has performed better than market conditions. The Hygiene Systems Getinge Group finished 2000 Disinfection, which had a very strong business unit has experienced good vol- Awith flying colours. The fourth 1999 with double-figure growth. ume growth, whereas volumes for the quarter was the strongest in profit terms in In the Extended Care business area, Wound Care only reached satisfactory lev- the Group's history. After two years of which has elderly care worldwide as its els in the fourth quarter. weak demand in the American market for most important customer group, demand the Extended Care business area, the expec- has been very good with the exception of Profit performance ted turnaround happened. At the same the important markets in the UK and US. By addressing the volume shortfall at an time, the foundation was laid for a new At year-end 1998, there were big changes early stage, particularly in Extended Care, business area, Surgical Systems, during and cuts in the US's federal reimburse- with rapid cost adjustments, the Group several hectic months around Christmas, ment system, Medicare. The result was could maintain operating profit at the pre- through the acquisition of world-leaders in that the majority of the US's elderly care vious year's level, even though operating surgical tables and surgical lights, Maquet chains have reduced investment and margins declined somewhat in both busi- of Germany and ALM of France, respecti- growth ambitions in the last two years. ness areas. vely. Criticism of the cut backs in Medicare, In Infection Control, the rapid expan- which have left many patients without sion in North America led to a fall in Market performance care places, has grown and gradually led operating margins, as operating margins in over the past year to extra funds being allocated to the sys- the US are 5-6%, which is considerably Demand in the Group's biggest business tem. These funds, in combination with the below the average for the business area. area, Infection Control has been excellent caregivers' improving expertise on how to Operating margins for other regions were overall in 2000. Above all, the North earn money in the new system, has led to maintained at a satisfactory level of over American market has been surprisingly a good recovery in the latter part of 2000. 15%. The past year has also been charged strong, where growth has been very good The UK elderly care market also had a with development costs within the in the hospital market and Life Science poor start to the year with reduced subsi- Sterilization business unit for development with the emphasis on biotechnology and dies and reprioritizing within care. The sit- of a new family of hospital autoclaves, as research. Performance in the developing uation improved markedly during the sec- well as a product system for research markets has continued to progress well, ond half of the year as a result of con- facilities in the Life Science customer seg- with good growth in the Far East and scious and general investments to improve ment. Overall, the business area's profit excellent growth in Latin America. In the English health care. In other geographical was at the level of the previous year. European markets, demand has been at markets, the Extended Care business area Extended Care, which finished the year around the same level as the previous can be pleased by very strong demand very strongly in all markets and business year, mainly because of the somewhat with double-figure growth, and Germany units, reached a profit level in line with weak start to the year. The Sterilization also continues to grow despite difficult the previous year's. The Patient Handling and Wound Care business units, which are both heavily dependent on the UK and North American markets, started the year weakly. This led to a low utilization of factory capacity in the first six months. Both these operations have their main pro- duction in the UK, which also negatively affected profit performance because of the strong pound.

Maintained high tempo of change The past year has required flexibility and the ability to adapt rapidly, to accelerate when needed and brake when it has been the necessary measure. The Infection Control business area has, through a series of acquisitions over the past 10 years grown into a world-lead- er in its niche. Growth and active partici- pation in the sector's consolidation have been prioritized over structure. In the past year, extensive efforts have been made to fuse together the business area's opera- Comments by the President

tions into an efficient and market-oriented business area's sales channels and will margin for the combined Maquet and Group with a clear message to customers. strengthen the product range for the ALM business was appr. 8%. Through An important ingredient in this transfor- expansive semi-institutional market. synergy effects, internal improvements mation work is to create a more efficient The Extended Care business area has and cross-selling, the operating margin production structure for sterilization, been running a project for over a year to should be improved to between 12-15% where the development of a common make distribution and logistics simpler within a period of 1-3 years. global family of hospital products is a and more efficient. The aim is, that within basic requirement. a two-year period, all deliveries will be Outlook for 2001 Due to the development of this new made directly from the factory to the end The last quarter of 2000 has in many ways product family, called the world sterilizer, customer with a minimum of administra- been a turning point for the Getinge the number of production plants will be tion and tying up of capital. The system is Group. The Extended Care business area reduced, product development concentrat- already in place in France and the has, for the first time in a long while, a ed and purchasing co-ordinated. Benelux countries and will be implement- favourable market climate in the majority The first products from the world steri- ed gradually over the coming year in other of its markets. Competitiveness is good lizer project were presented in autumn markets. and the product portfolio is well stocked. 2000. The new business area, Surgical Another important component in the Surgical Systems Systems, has driven up the Group's transformation work is to strengthen the The acquisitions of the world leader in growth rate, which for the past 10 years Getinge brand as a competent system surgical tables, Maquet, and the world- has been over 25%. Synergy effects and provider and a knowledge-based compa- leader in surgical lights, ALM, have in a further expansion opportunities mean that ny, that actively participates in the effi- short period created a third very exciting we can look forward to very exciting ciency -enhancement of the customer's business area in the Getinge Group, with prospects in the coming years, not least in work for improved hospital hygiene. A sales of over SEK 2 billion. Getinge has terms of profit. central marketing function is under con- pointed to Surgical Systems for several The operations within Infection struction for this purpose. In parallel with years as a natural complement, primarily Control are taking confident steps towards this long-term work there is an intense to the Infection Control business area. an improved structure, both in terms of focus on improved profitability in the With the strong platform created by the production and distribution. Even though North American operation. acquisitions, Getinge is already more than growth within the business area is lower In the Extended Care business area the twice as big as the world No. 2 in Surgical than for the other areas, there is a latent poor demand situation in the US and the Systems, and in combination with profit potential here to be developed UK has been addressed with several cost- Getinge's existing activities, the Group has through an increased co-ordination of reduction initiatives. In the US, these become a highly attractive supplier to the operations. measures began as early as the autumn of hospital sector. Getinge's market share for Overall, there are good reasons to look 1999, and in the UK, costs have gradually surgical tables is 40% and for surgical forward positively to Getinge's perform- been reduced.The effects of this and other lights, 20%. ance in the coming year. programmes is that the business area now The Group intends over the next two- has a far sharper cost-effective organiza- year period to further strengthen its posi- A big thank you… tion. tion in the prioritized product areas, … to all staff who have worked for Despite the market situation, invest- tables, lights and ceiling service units. Getinge's development over the past year. ment in product development has Through the restructuring programme that It has been difficult in certain markets, remained high. The Patient Handling busi- has been initiated, the acquired companies which has required extra efforts by many ness unit launched two new active lifters, will in their first year as part of the Group of our staff. It is therefore even more grati- Encore and Entroy, in the first quarter. make a positive contribution to earnings fying that the trend has turned, and that Opera, a passive lift for heavy institutional per share. Getinge, Maquet and ALM our work is producing results. 2001 will use, was introduced around year-end complement each other both in product be an even more exciting year, consider- 2000. The business unit's product portfolio and market terms, so that the effect of ing our new acquisitions and the creation has been further strengthened by the cross-selling will stimulate growth for a of a new business area. acquisition of Techno-Médic in Canada. long time to come. I am convinced that our high ambitions This company has developed a strong The market for Surgical Systems is will lead to continued success for Getinge ceiling lift that will be launched globally regarded as relatively fragmented and the in the coming year. in 2001. business area estimates that there is con- Parker Bath, acquired in September, tinued good potential for growth through had for many years been the Hygiene acquisitions. Systems business unit's strongest competi- Getinge has set up ambitious financial tor in the bathing system market. The objectives for its new business. In the company is already fully integrated in the financial year 1999-2000, the operating Johan Malmquist

7 Infection Control

Infe SterilizationandDisinfection. businessarea consistsoftwo businessunits: brands.The Products are marketed undertheGetinge andLancer and spread ofinfections. care andgeriatriccare sectorswithcompletesolutionstoprevent theemergence cThe Infection Control businessarea provides andthehealth customers inindustry tion Control Infection Control

Background touch and contact between people. The stones in pharmaceutical production facili- Many people die each year from "nosoco- most common medium for sterilization ties the world over. mial" infections Ð infections spread in and disinfection is water-borne heat, a Water distillation is a process in which hospitals. More people die from nosoco- method that is inexpensive, reliable and water is purified using steam and conden- mial infections than in road accidents. In environmentally-friendly. sation in a connected series of distillation the US, 80,000 people die each year and it Another important product is servicing columns made of stainless steel. This tech- is estimated that 4% of patients in acute and spare parts. This product segment nique saves energy and cooling water so health care are struck by these infections, accounts for 35% of the business area's sales available resources can be used in an opti- which lead to extended, more expensive and is growing by about 10% annually. mized way and with low running costs. care and, in the worst case, to the patient's Efficient and well-functioning equip- To meet demands for more efficient death. This is a major problem in the ment for disinfection and sterilization is health care, lower costs and a higher industrialized countries and even more important throughout health care and in working tempo, there is a growing need severe in developing countries. There are the pharmaceutical industry. Rapid servic- for labour-saving and easy handling sys- a number of contributory factors: greater ing of machines in acute production stop- tems that at the same time also guarantee mobility among patients and nursing staff page situations is just as important as con- high quality and secure documentation. within hospitals, resistant types of bacteria tinual preventive maintenance. Getinge's T-Doc is a computer-based bar-code and an increase in specialization. service organization, which is specialized system that simplifies staff's work and Multi-resistant bacteria are becoming in this, covers over 100 countries. quality assures handling of the hospital's more common and are today found all Pure water is the main raw material in sterile goods. over the world, mainly in hospitals and medicines intended for injection. The The Getinge Academy offers a com- nursing homes. A multi-resistant bacteria quality aspects affecting sourcing and dis- plete range of courses for safe handling of is a bacteria type that is resistant to the tribution are strictly controlled by regula- medical technical equipment, The courses majority of antibiotics, so that established tory authorities, such as the US Food and cover the entire production chain in disin- alternatives can no longer be used for Drug Administration and Sweden's fection and sterilization and are aimed at treatment or for prevention. These bacteria Medical Products Agency. Getinge- both health care staff and operators and in themselves are no more illness-induc- Kemiterm A/S (Copenhagen, Denmark) is technical staff in the food and pharmaceu- ing, but when they have caused infection, specialized in this area and its water distil- tical industries. they can be difficult to treat and eliminate lation equipment is one of the corner- from care environments. Another problem that is of increasing concern for the health care sector is the INFECTION CONTROL 1997 1998 1999 2000 incidence of prions, which are suspected Orders received, SEK m 2,514.2 2,524.1 2,884.5 3,044.8 of being the cause of BSE, also known as Net sales 2,353.0 2,615.7 2,811.1 3,081.2 mad cow disease. The British health Share of Group’s invoiced sales 64.3% 60.2% 57.5% 58.7% authorities recently allotted SEK 3 billion Gross profit 963.7 1,028.8 1,084.6 1,135.0 to a programme that includes aims to Gross margin, % 41.0% 39.3% 38.6% 36.8% improve the standard of sterilization and Operating costs, SEK m –608.4 –665.8 –719.3 –767.5 disinfection equipment in order to halt the Operating profit 355.3 363.0 365.4 367.5 spread of the disease. Share of Group’s operating profit 64.8% 55.6% 52.8% 52.7% Operating margin, % 15.1% 13.9% 13.0% 11.9% Products No. of employees 2,095 2,358 2,371 2,403 An important element in preventing the onset and spread of infections is to ensure Sterilization that proper routines are in place within Orders received, SEK m 1,792.8 1,726.0 1,942.6 2,088.7 health care. Another important component Net sales 1,659.2 1,838.6 1,902.7 2,111.3 is the right equipment, and this is where Disinfection Orders received, SEK m 721.4 798.1 941.9 956.1 Getinge comes in. The basic building Net sales 693.8 777.1 908.4 969.9 blocks in the Infection Control business area's range are sterilizers and disinfectors. Market performance 1999 2000 Change Sterilization is defined as the total elimi- Orders received per market nation of all micro-organisms, such as Western Europe 1,314.3 1,272.8 –3.2% bacteria and viruses. US and Canada 1,146.2 1,298.8 13.3% Articles that come in contact with Asia and Australia 298.1 265.2 –11.0% blood circulation, i.e. enter the human Rest of the World 125.9 208.0 65.2% body, must be sterile. Disinfection kills Business area total 2,884.5 3,044.8 5.6% micro-organisms that can be spread by Change adjusted for acquisitions and currency-related effects 3.0%

9 Infection Control

Efficient production at a sterilization centre using Getinge's quality-assuring, traceability-ensuring system, T-Doc.

Customer segment: acute health care demand comprises of replacement invest- in infection problems. In general, it is Acute health care is the largest customer ments. However, growth potential is con- only the geriatric care markets in Northern segment and accounts for 63% of the siderable in developing markets, which Europe that are fully-developed in terms business area's sales. Getinge offers com- amount to 15-20% of the customer seg- of disinfection equipment, so there is great plete solutions for infection control in ment. Disinfection is growing faster than potential to spread equipment use in the areas such as operating departments, hos- sterilization in all markets. Annual growth rest of the world. The US is a market with pital wards, hazardous waste handling, for the customer segment as a whole is excellent potential, as disposable articles hospital pharmacies and microbiological estimated at 4-5%. Being able to provide are currently the most common way of redu- laboratories. Most sterile goods are pro- maintenance and service is becoming a cing infection problems in long-term care. cessed at hospitals' sterilization centres. more important part of sales to the health These centres can be described as produc- care sector. At present, servicing and spare Customer segment: industry tion facilities for sterile articles. This is parts add up to a significant and rising The segment covers customers in the where used articles from the hospital’s proportion of sales, and growth is over 10%. pharmaceutical industry, medical technical various departments, especially the operat- industry, private and state research facili- ing department, are processed. Customer segment: geriatric care ties, universities, laboratories, etc. Industry Getinge can provide all the compo- Sales of infection control equipment to the customers represent 28% of the business nents required to build up and run an effi- geriatric care customer segment consist area's sales. The most important customers cient sterilization centre: sterilizers, disin- mainly of disinfection products. The seg- are among the world's pharmaceutical fectors, transport and logistics products, ment accounts for 9% of the business companies, which account for 65% of the consumables, information systems, etc, area's sales. segment's sales. Remaining sales mainly and last, but not least, training and servic- The drive in acute health care to reduce stem from different types of laboratories. ing. In acute health care, the most impor- the average care period per patient has Sterilizers are used in this segment either tant considerations today are running costs, meant that geriatric care has received an for production or research purposes. The reliable operation and quality assurance. increased stream of patients with greater pharmaceutical industry produces large Growth is limited in the developed care requirements. For geriatric care, this quantities of injectables, which must be health care markets, and a major part of increase has been accompanied by a rise sterile for injection into the human body.

10 Infection Control

The same applies to the large number of increasing for different types of validation Lancer is another important brand that medical devices such as implants and and qualification services. is used for a unique range of washer disin- catheters. fectors, mainly for customers in industry, Requirements differ widely between Brands which are sold through the company's customers, and each sterilizer is designed Getinge is the main brand in Infection own distribution channels. Lancer com- according to the customer's specific needs. Control. Getinge represents a system of petes with Getinge in a way that enables The principal task of research autoclaves products that aims to prevent the emer- deeper market penetration. is to ensure that the environment where gence and spread of infections. The brand research is carried out is free from is sold in the acute health care and indus- Markets and trends unwanted bacteria and micro-organisms try customer segments. The world market for infection control that could affect test results. Other brand names for the same prod- products amounts to SEK 9 billion, and is Disinfectors are sold to the pharmaceu- ucts are Getinge Castle, which is used in growing at an annual rate of 4-5%. tical industry mainly for cleaning the North America and Latin America, The Disinfection business unit shows machine parts that are used in production. Lequeux (France), SEC (the UK) and higher growth than the Sterilization busi- In laboratories, disinfectors are used to Maquet (Germany). These brands have ness unit. Servicing and the after-market clean laboratory glassware and similar been acquired and used for reasons of past represent an increasingly important part of articles. significance. In time, these will be the business area's sales and are growing Sales to customers in industry follow replaced by the Getinge brand through a at a substantially faster rate than equip- strict guidelines from various authorities process that will be initiated in 2001. ment sales. including the most important, the US This is to create a strong global brand and The market forces vary between the Food and Drug Administration (FDA). a clear identity. Through this, marketing can different customer segments and, accord- The industry customer segment shows be made more effective and better poten- ingly, between the two business units. better growth than the health care seg- tial is created for utilizing the Internet. In the industry segment, demand is ment, both in terms of sterilization and In the geriatric care customer segment, mainly steered by developments in the disinfection. Servicing accounts for a rela- the Arjo brand name is used for flusher pharmaceutical industry, which is consid- tively small share of sales, approx. 15%, disinfectors. ered to have good, stable, long-term but is growing well. Above all, demand is growth prospects. The consolidation in

Water distillation equipment from Getinge-Kemiterm for production of WFI (Water For Injection).

11 Infection Control

In 2001 Getinge launches a new control system, the PACS 3000, for both sterilizers and disinfectors

the pharmaceutical and medical technical prospects. Increasing demands for exacti- zation and disinfection equipment. The sectors, where several large companies have tude and control open up opportunities for result of this process is that there has been merged in recent years, makes it difficult suppliers such as Getinge to play a role in a marked rise in requirements and stan- to forecast short-term demand. For cus- this sector. dards for equipment. It has also speeded tomers in industry, research laboratories The laboratory market, which generally up the replacement of ageing equipment Ð and the pharmaceutical industry, the deci- requires more basic products than, for a trend that is expected to continue for sion-making process is highly rational. instance, the pharmaceutical industry, has several years in the EU. Performance is the main priority, even grown considerably over the last three Geriatric care is an area with excellent though price is now more of an issue, as years, principally in the US, where there growth prospects. Awareness of infection customers have become increasingly cost- is greater access to research funds. About problems is rising in most markets. conscious. 50% of the laboratory market is in the US. Today, 75% of the market is concentrated The requirement for documentation, The market for the industry customer in Scandinavia and the German-speaking which is being driven by authorities such segment is technology-driven, whereas the countries. as the FDA, has increased substantially in market for the health care segment in recent years and represents a significant industrialized countries is more mature Distribution and sales part of the product. and cost-driven. In the developing mar- The business area's products are distribut- A clear trend is that customers in the kets, on the other hand, there is a great ed by the Group's own sales companies in industry segment are increasingly demand- need to invest in basic health care, in 18 countries. As a complement to its own ing more complete solutions, which is which infection control is one of the key sales companies, Getinge co-operates in linked to their own focus on core compe- elements. Certain segments in health care some 80 countries with a network of dis- tencies, and results in the outsourcing of a still have excellent growth potential. This tributors and resellers, which receive tech- larger share of the purely technical sterili- applies in general to disinfection. Another nical and commercial support from zation competence. prospective growth area is the disinfection regional offices localized in important The food side of the industry customer and sterilization of flexible endoscopes. regions of the Far East, Middle East and segment, which has traditionally opted for The creation of the common European Latin America. relatively simple sterilization solutions, is market has driven an intensive phase of For sales to the industry segment, cus- considered to have interesting growth standardization that applies to both sterili- tomers are also served by a large number

12 Infection Control

of product specialists, who help to meet sents 40% of the business area's volume, uct range breadth in both hardware and customer's needs with effective product sales are divided between a large number software, this is an important competitive solutions. of markets. This softens the effect of advantage for Getinge, especially in Following an increase in demand in the political decisions affecting individual Europe. The customer gains from lower Far East, the business area's presence has markets. care costs and total running costs with a been strengthened during the year in The pharmaceutical industry has gone complete and well-functioning infection Japan and China. In Japan, the Tokyo through an intensive consolidation phase control system. office has been complemented with a new in the 1990s, a trend that has been accen- Maintenance and services are an office in Osaka. The earlier licensed man- tuated in the last two to three years. The important strategic component for ufacturing of water distillation equipment effect for a supplier such as Getinge is Getinge. Demand for new services such as has ceased, and the Japanese market will that short-term demand is hard to foresee, validation and qualification are on the now be supplied by Getinge-Kemiterm whereas long-term demand is not affected. increase. In the US, the servicing market A/S in Denmark. Regarding technical development, the is well developed, whereas the European In China, Getinge has been previously potential threat of new, more efficient market is developing fast. The business represented by offices for sales and serv- methods of sterilization and disinfection is area will therefore intensify its work on icing in Beijing and Guangzhou. During considered small. Customers put safety increasing sales of services to all customer the year, a new office has been opened in first, and it takes a long time to introduce segments through a wider product range Shanghai. There has been a marked new technology in a customer segment. and better marketing. increase in sales during the year and this Risks concerning payment can be con- Acquisitions will play an important upward trend looks set to continue. Plans sidered as minimal, because customers are role in the continued expansion of the to establish limited production are being mainly public authorities or well-reputed health care market. Acquisitions will also evaluated. industrial companies. Business in develop- be of significance as a complement to ing markets is almost always safeguarded internal product development in all busi- Competitors by advances or letters of credit. ness units. Getinge's total market share in the infec- No individual supplier or customer tion control field is around 25%. There is accounts for a significant part of the busi- Product development: Sterilization only one company that can measure up to ness. Product development is an important com- Getinge in terms of size, range and distri- ponent in the business unit's operations. In bution network - the US company, Steris. Objectives and strategies the industry segment it is important to meet The company is the market leader in The business area's objectives are: customer's widely differing requirements. North America concerning health care ¥ To be the leading supplier to health care, Each autoclave is customized for the customers. Market share in the industry geriatric care and industry of complete product it will sterilize. This places high segment is similar to Getinge's. infection control solutions, which in an demands on flexibility and technical About 85% of Steris' total sales are to active way contribute to improve the expertise. In the hospital market, the customers in North America. Overall, customer's finances and total quality demand for flexibility is not so great, as Steris is number two in the world in sales ¥ Organic growth shall amount to 5% over the products for sterilization, such as oper- of infection control equipment, but has one business cycle ating instruments, are the same for all cus- higher sales of servicing and consumables. ¥ The operating margin shall in the long tomers. There are however, geographical Other competitors in sterilization are term be approx. 15% differences due to different norms. Price is MMM in Germany, Johnson & Johnson in ¥ Market shares in prioritized product seg- also playing a more decisive role. In both the US, and Sakura in Japan. The Italian ments shall exceed 30% cases, user-friendliness and operative reli- company, Fedegari, is the biggest com- ability have great importance, as the cus- petitor on the industry side. In the disin- The business area will utilize Getinge's tomer's whole operation stands or falls on fection business unit, Miele and Meiko of strong market positions and advantages of the function of the autoclave. Germany are the biggest competitors, scale, which permit the sector's lowest Product development during the year along with Steris. manufacturing costs and lead to the devel- has been mainly focused on two projects. opment of new products and services. One is the development of a totally new Risks This will be particularly decisive in the generation of health care autoclaves, the The business area's operations are directly technology-driven segment, industry. other is to develop a new control system and indirectly dependent on public sector Considerable cost reductions by utilizing for autoclaves for both hospital and indus- financing. Customers in health care and existing production and development try customers. geriatric care, as well as in industry, are resources more efficiently, will improve The new range of health care auto- affected by political decisions on care the competitiveness of sterilizers. claves was shown for the first time at the financing. Even privately-run care is System sales will be the basis for com- annual medical exhibition in Düsseldorf at financed to a large extent via public sector mercial activities. As no competitor, with the end of the year. The launch will effec- funds. Disregarding the US, which repre- the exception of Steris, has the same prod- tively begin in the third quarter of 2001.

13 Infection Control

Automatic loading and inspection of Getinge's washer disinfectors at the Karolinska Hospital's sterilization centre with AGS (Air Glide System), which saves space and labour.

Previously each of Getinge's factories for The smallest of these new products is a Scandinavia and Australia, and increased autoclaves has had its own design and table-top washer disinfector offering by 8%. Trends in the major markets of construction. The new range introduces a effective cleaning and disinfection in a tomorrow in Asia continued to be positive, common platform. This will enable signif- very short processing time. The product, whereas sales stagnated in France, Italy icant synergies in the purchasing of com- coded Getinge 1345, is expected to be and the UK. In Germany, sales declined as ponents and co-ordination of production. applied in small care facilities and dentist a result of newly introduced health care A broad range of different models has surgeries, where there is a great need to reforms, which meant that investments been developed to meet the market's quickly reuse instruments and circulation were deferred. Eastern Europe began the changing needs. This is considered to pro- goods. year badly, but demand, particularly in vide a competitive advantage, as flexibili- The new washer disinfector, Getinge Poland and Russia, gradually increased ty for customization is on the increase. 2455, is adapted for hospital departments during 2000. Demand in Latin America Furthermore, emphasis has been given to where everything from instruments to remained stable and good, particularly in making the equipment easy to maintain hand basins are disinfected. The 2455's Brazil. and simple to install and a new design for patented drying and cooling system facili- The new inspection system AGS for the products has been developed. tates extremely short processing times. goods handling in sterilization centres has The biggest innovation in the new More and more hospitals are choosing been well received, and several deliveries product range is the new control system. to equip disinfectors for handling specific and installations have been carried out. Via the control system, the autoclaves can instruments. Different operating depart- References include the Karolinska communicate not only with the operator, ments use different types of special instru- Hospital in Stockholm, the Uni Klinikum in but also the local computer network. ments, many of them pipe-shaped with Aachen, Memorial Hospital in Houston, Making the system reliable and easy to very thin channels. To clean and dry these B.Braun Medical in Lyon, and Ruijin use has been a major priority. A selection effectively requires a wide range of acces- Hospital in Shanghai. All these are major of five operator panels makes it possible sories. A great emphasis has been placed projects in which AGS has provided a sub- to adapt the product to customers' needs, on following trends on the instrument side stantial competitive advantage. whether the applications are for hospitals, in order to adapt and develop accessories. Orders received and invoicing were good laboratories or pharmaceutical production. All new products comply with the in all quarters, with a peak, as usual, in the forthcoming European norm: EN 15883. fourth quarter. Product development: Disinfection The geriatric care market experienced a Several new products have been devel- The past year good volume trend during the year, around oped in the washer disinfector range dur- In Infection Control, developments were 6%. In the UK, Austria and Canada, the ing the year. The aim has been to broaden mixed during the year. For the biggest trend was strongly upwards, whereas sales the product range. customer segment, acute health care, the fell in Switzerland. In Poland, a substantial volume trend was good in the US, delivery was financed by the World Bank.

14 Infection Control

In the industry markets, the volume trend EU, new norms for disinfectors come into was largely unchanged from the previous force. Member states have now agreed on year, but prices were better. Invoicing and the formulation of these, and even though orders received increased by approx. 9%. In no date has been set for when the norms the US, the sales trend was upwards, partic- will come into force, customers are start- ularly on the laboratory side. Orders ing to replace old equipment. received were strong in the last quarter. In The acquisitions of Maquet and ALM Asia, sales rose as a result of a large delivery are expected to provide a stimulus for of water distillation equipment to Thailand. Infection Control. In many cases, sterile In Sweden, Denmark, the Netherlands, and operating equipment is negotiated as a Belgium and France, the sales performance package. Maquet's broad range and good was also good, whereas slight drops were reputation provide a clear competitive reported in the UK and Germany. advantage. In the US, Maquet will get access to Getinge's good infrastructure, Outlook for 2001 both for sales and servicing. And, in The market slackened for the business Germany, Getinge will gain access to area's products in 1999, but there was a Maquet's good infrastructure. recovery in 2000. The turnaround has A partially new production structure been particularly marked in the Far East, a will follow in the wake of the new genera- market that looks as if it will improve fur- tion of autoclaves, which in turn will lead ther in 2001. There was a similar rise in to significant cost savings and increased demand in the US, where a previous tight- efficiency in product development. This, The new 2455 washer disinfector for ening up of the reimbursement system per- plus a number of attractive products devel- hospital departments fills a gap in suaded hospitals to defer investments. oped by the business units, means there are the product range. These measures have now been relaxed good reasons to be optimistic about 2001. and there is also pent-up demand. In the

Steristack¨ concept for dentists' surgeries and small clinics, which takes up minimal space and offers the user safe and functional handling of sterile items.

15 Extended Care

Opera is one of the new generation of lifting aids. Using Opera, the user has greater flexibility and functionality than before. Opera will be launched in the spring of 2001. e r a C

d e d

The Extended Care business area offers systems and products to customers in the n acute health care and geriatric care sector that enable labour-saving lifting and more comfortable hygiene care for the elderly and people with restricted mobility. The

e business area, which also supplies products to prevent and treat pressure sores or bedsores, aims to make care more efficient. Products are marketed under the Arjo

t and Pegasus brands.The business area has three business units: Hygiene Systems, Patient Handling and Wound Care. x E Extended Care

he basis of the business area's Sales and marketing has been co-ordi- lead to increasing demands for efficient operations is the many problems nated since the start of 2000 by a central care. Tthat exist in today's health care sales and marketing organization in ¥ A continued low degree of penetration in sector. Work in health care is often Luxembourg, which is responsible for most of the developed markets, particu- marked by heavy lifting, incorrect work- developing the business area's position as larly regarding lifting aids. ing postures and stress. In many cases this the leading supplier in the market. ¥ The increasing demand for good, person- leads to back and neck injuries among the al care. There is already an evident shift staff, and to high costs for sick leave and Markets and trends from large centralized hygiene facilities rehabilitation. Often, work is carried out in The business area has its own sales com- to smaller private bathrooms involving environments that are not suitable for panies in developed countries Ð North new requirements for equipment. modern equipment, for example because America, Western Europe and Australia, premises are too small or the spaces are where institutional care is common and The home care market badly planned. Because of the nature of where priority is given to good working Many elderly and disabled people are the work, it is difficult to recruit personnel conditions. In the rest of the world, sales cared for in the home by relatives or care for the health care sector and staff and distribution is done via agents and dis- personnel. Products for this segment are turnover if often relatively high, even in tributors, often with a focus on simpler generally very simple and easy and cheap periods of high unemployment. The num- hygiene systems and products for treat- to copy. The most important competitive ber of elderly who need care is set to ment of burns. element is price, and distribution is via mushroom in the next 25 years, while the independent distributors. The home care number of younger people to look after The most important driving forces for sector has for many years suffered from them will diminish. continued good growth are: poor profitability. The business area has It is in this environment that the busi- ¥ The demographic trends pointing to a therefore made a strategic decision not to ness area's products and consulting activi- rising percentage of elderly and a dimin- actively cover the home care segment at ties can offer solutions. Getinge's products ishing percentage of younger people who the present time. are aimed not only at improving the work- choose to work in health care, which will ing environment, but also contribute to an improved quality of life for the elderly and disabled, for example by enabling them to EXTENDED CARE 1997 1998 1999 2000 get out of bed in an easy and comfortable Orders received, SEK m 1,253.6 1,714.1 1,981.6 2,137.7 way, give them the possibility of good Net sales 1,234.4 1,663.0 2,007.7 2,110.9 Share of Group’s invoiced sales 33.7% 38.3% 41.1% 40.2% personal hygiene, rehabilitation on their Gross profit 624.0 888.7 1,051.6 1,042.3 own terms or by avoiding pressure sores, Gross margin, % 50.6% 53.4% 52.4% 49.4% which is a major and painful problem. Operating costs, SEK m –433.1 –605.8 –731.2 –719.4 The business area's products are adapt- Operating profit 190.9 282.9 320.4 322.9 ed for different mobility levels and differ- Share of Group’s operating profit 34.8% 43.3% 46.3% 46.3% ent types of consulting activities, for Operating margin, % 15.5% 17.0% 16.0% 15.3% instance as advisors to architects in the No. of employees 962 1,306 1,383 1,559 design of new nursing homes and hospitals. Hygiene Systems Orders received, SEK m 681.3 797.0 790.3 899.7 The business area consists of three Net sales 661.9 760.1 814.4 904.8 business units: Patient Handling ¥ Hygiene Systems covers production and Orders received, SEK m 572.3 658.3 745.1 797.0 development of bath and shower prod- Net sales 572.5 645.2 749.1 772.3 ucts. The business unit also includes Wound Care hydrotherapy equipment. Orders received, SEK m – 258.8 446.2 441.0 ¥ Patient Handling offers aids in the lifting Net sales – 257.7 444.2 433.8 and transfer of patients, for example from Market performance 1999 2000 Change bed to wheelchair or wheelchair to toilet. Orders received per market ¥ Wound Care supplies therapeutic spe- US and Canada 744.2 770.5 3.5% cial-purpose mattresses for the treatment The UK 503.4 568.5 12.9% and prevention of pressure sores. Around Germany 242.2 237.2 –2.1% 10% of patients in geriatric care suffer Other Western Europe 414.3 477.7 15.3% from, or are vulnerable to, pressure Rest of the World 77.5 83.8 8.1% sores. The problem often occurs in cases Business area total 1,981.6 2,137.7 7.9% where patients' mobility is restricted. Change adjusted for acquisitions and currency-related effects. 0.9%

17 Extended Care

Pressure sores are very common in geriatric care and cause severe human suffering and high costs for care facilities.The business area's specialized mattresses can prevent the onset of pressure sores or accelerate the healing process.

Through the acquisition of the Canadian company, Gestion Techno-Médic, the business area has gained a new ceiling hoist in the range Ð Bravo. Bravo is a very user-friendly product with a wide range of unique and time-saving functions.

The institutional and integrated solutions for both beds and mat- unit, in which the business area offers semi-institutional markets tresses. The wound care market, which extensive clinical education and training. Even though more and more people are amounts to SEK 8 billion, is estimated to Sales are largely through Getinge's own cared for in the home, there is still a need have a yearly growth of 8-10%. sales companies with well-educated sales for the various institutions that exist today staff in prioritized markets. Sales are large- when the elderly become too weak or ill to Distribution and sales ly consultative-based, and new and be cared for in the home. It is in these The consulting-based sales that have long improved software is being produced to markets that the business area's products been a distinguishing feature of the busi- support sales staff in their activities and and services come into their own. This ness area are becoming more important, simplify daily work for the customer. market, which amounts to just over both in terms of volume expansion and SEK 3 billion, is estimated to grow by profitability. The focus for consulting- Competitors 7-9% annually. based sales differs somewhat between dif- Getinge is the only true global player in ferent markets. In certain markets, includ- the markets for Extended Care. In general, Wound Care market ing the Dutch, the emphasis is on how the the competitors are local manufacturers, The most important geographic markets working environment can be improved, active in one or a few geographical mar- for the wound care products are the UK whereas in the US, the emphasis is on how kets. Their biggest competitive weapon is and US. In 2001, the sales companies in insurance costs for work-related injuries usually price. No other player offers a Scandinavia, Italy and Spain will actively can be reduced through an improved work- complete product portfolio. Getinge's com- start to market these products under the ing environment. The basic offer Ð effi- petitors are often specialized, either in business area's dominant brand Ð Arjo. A cient products, extensive expertise and hygiene or lifting equipment. clear trend is that the focus is shifting from consulting, however, is the same in both The competitors that are active in more treatment to the prevention of pressure cases. than one geographical market are often sores. Suppliers are also expected to offer Consulting-based sales are particularly dependent on external distributors for their not only specialized mattresses, but also important in the Wound Care business sales, which means that they cannot estab-

18 Extended Care

lish direct contact with their customers. ¥ Strong, continually renewed product Marketing Hygiene Systems has a global market range. In 2000, intensive work began on the share of approx. 55%. Among the com- ¥ Global distribution organization of highly strengthening of the business area's brand. petitors are France Reval (France), Krämer qualified personnel. This work will continue in 2001 with ini- (Austria) and Trautwein (Germany). ¥ Complete product systems that solve the tiatives that include campaigns to profile Patient Handling has a global market customer's problems with an emphasis on the business area's consulting role. The share of approx. 39%. Sunrise Medical improved care quality, working environ- number of direct product campaigns will (US) follows with 12% and Liko (Sweden) ment and cost-effective care. also increase in order to get new products are third with 7%. on the market faster and more rapidly find In the Wound Care business unit, the Product development the customers who are immediately inter- business area has a considerably lower The business area will continue to focus ested. global market share, 6%. The biggest com- on the development of efficient and user- petitors are the American companies, friendly products, above all for the semi- Cost reductions HillRom and KNCI, which have market institutional segment. Entry barriers are The business area is continually working shares of 25% and 20%, respectively. raised through effective and attractive to reduce costs while maintaining quality, design of products, and investment in pro- by methods such as increased purchasing Risks duction tools. Examples of the first named from countries with lower costs and The biggest risks for the business area are are the Alenti lift hygiene chair and the increased co-operation between the busi- political. Changes in benefit systems can Miranti lift bath trolley, which have won ness areas and the business units. have a big impact on individual markets. international design prizes. There are no As the business area is not dependent on a copies of these products on the market. Product development: single market, but in fact is active in a Hygiene Systems large number of markets, this risk is rela- Markets A number of development projects were tively limited. The business area will also continue to completed in 2000. The Malibu bath, which The risk of accidents exists as the busi- expand geographically with an aim to find is aimed at the semi-institutional segment, ness area's products lift and transfer and in profitable segments even in less developed has been significantly improved from both other ways come into contact with the eld- countries that in time will become impor- design and function perspectives, while erly and disabled. In addition to complying tant additions. The business area can also production costs have been reduced. with all requirements from authorities such increase its sales by improved penetration The new pool lift Entroy, which is part- as the FDA, UL, EC, TÜV, etc, the busi- in most existing markets. ly based on the Alenti and Miranti lifts, ness area is active in the continual will be launched in 2001. improvements of products, maintenance service and routines for minimizing the risk of incidents.

Objectives and strategies The business area's objective is to further strengthen its position as the leading glob- al supplier of products and systems for good and efficient care of the elderly and disabled.

The business area shall: ¥ Achieve annual organic growth of 7-9%. ¥ Achieve an operating margin of at least 15%. ¥ In the long-term, establish market shares of at least 40% in the institutional seg- ments and in prioritized product seg- ments.

The business area shall continue to be the leading supplier by utilizing its strong and Planning a nursing home right from the start means that you can build in optimal partially unique competitive advantages: conditions. The business area has long and solid experience as an advisor to architects, and works actively in this area.

19 Extended Care

ried out using new technology to make it easy and inexpensive to treat pressure sores in a far more effective way than today.

The past year After a weak start to the year, demand improved gradually in the year's second half. For the full year, orders received increased by approx. 8% and invoiced sales by approx. 5%. There were however, considerable differences between the busi- ness units.

Business units and markets In 2000, there was a positive volume trend for the Hygiene System business unit, in which orders received rose by approx. 14% and net sales by approx.11%. Patient Handling reported orders received at a level comparable with the previous year and a marginal improvement in net sales. The Wound Care business unit's orders received and net sales were slightly below the previous year's. Volume trends in most markets were good in 2000, with the exception of the US and UK, which had poor starts to the year. In the US, the market situation brightened considerably in the year's second half fol- lowing the uncertainty that marked the geriatric sector due to the introduction of a Entroy is a new pool lift that makes it possible to transfer both sitting and new reimbursement system within recumbent patients in and out of pools. Entroy operates with both the business Medicare. The improvement in the US area's Axona hydrotherapy pool and conventional pools. was related to care givers adapting their organizations to the new reimbursement regulations and that new funds have been injected in the wake of growing criticism Pepita, a new nursing table, aimed at tion of Gestion Techno-Médic will be of the severe cuts. In the UK, reprioritizing the hospital market will be launched in 2001. launched in the US in the first quarter of of care budgets led to a poor start to the Development resources have also been 2001 and in other markets during the year. Broad and long-term investments in allocated to improve the design and func- autumn. the UK's health care improved demand tion of the Parker Bath product range. There will be intensive work in 2001 on considerably in the year's second half. These products will be launched under the the development of a replacement for the Most markets, except the UK and US, Arjo brand in the spring of 2001. Trixie lift, which is a passive lift for the achieved double-figure growth in 2000. semi-institutional market. Product development: Acquisitions Patient Handling Product development: The business area made three acquisitions The development work on two new pas- Wound Care of strategic importance during the year. In sive lifts Opera and Tempo was completed Getinge has developed a number of unique the second quarter the Canadian company, in 2000. The lifts will be launched in all products for the treatment of pressure Gestion Techno-Médic, and the Irish markets during the first six months of sores. Among these are Cairwave Therapy company Lenken Healthcare Ltd. were 2001. Opera and Tempo replace Systems and Trinova, products that offer acquired. The acquisition of Gestion Maximove, which has been a best-seller "zero pressure" and great adaptive poten- Techno-Médic gives the business area a for the business area for many years. tial. Product development is not limited to highly competitive ceiling lift range. The The ceiling lift range from the acquisi- mattresses. Studies are currently being car- products will be launched in the US in the

20 Extended Care

first quarter of 2001 and in the rest of the extremely well and Carendo will be intro- ening the market organization as well as world in the fourth quarter. Through the duced in other markets in 2001. improving and enhancing the efficiency of acquisition of Gestion Techno-Médic, the logistics and administration will pay off in business area has also gained a platform Outlook for 2001 the years to come. To sum up, it can be in the whole of French-speaking Canada. For the first time in two years, market said that there are good reasons to be opti- Lenken Healthcare has been the busi- conditions look positive in most of the mistic about 2001. ness area's distributor in Ireland for over business area's markets. The weaker 20 years and strengthens the business demand in the US and the UK has meant area's position as Ireland's leading suppli- that costs have been reduced in both 1999 ers of lifting aids and Wound Care prod- and 2000, which means that the business ucts. area can more rapidly convert increased In the third quarter, another acquisition volumes into profit improvements. The was made Ð Parker Bath Ltd in England. conscious focus on product development The acquisition means above all that the in combination with a number of product business area gains more strategic hygiene acquisitions means that today's product products in the range. Parker bath devel- portfolio is very strong. Work on strength- ops and manufactures bathing systems for the semi-institutional market, in which growth is expected to be very good in the next few years. The business area now has a complete range of bathing products for institutional and semi-institutional markets.

Central function for sales and marketing in Europe At the start of the year, a new marketing organization was set up for the business area, based in Luxembourg. The organiza- tion has taken a number of measures to strengthen the business area's brand as a problem-solving supplier. This work will be vigorously continued in 2001. Work to improve logistics and distribution has also started and within a two-year period will enable the majority of deliveries to go direct from the factory to the customer without unnecessary administration and tying up of capital.

Product launches System 2000 Ð the new bathing system Ð which was launched in 1999, has been very successful. The possibilities offered by a modular system to create tailor-made products was highly appreciated by cus- tomers. The Encore active lift, introduced in autumn 1999, has also been very success- ful. Encore has wider applications than the other active lifts on the market and is bet- ter adapted to the body's natural move- ment patterns than any other lift. The introduction of the Carendo show- Encore was launched during the year and was well received by the market. er chair during the year was limited to the Encore has wider applications than other active lifts and is better adapted to the Dutch market. This launch has gone body's natural movement patterns than any other lift.

21 Surgical Systems s m e t s y S

The acquisitions of the German

l company, Maquet, and ALM of France – the respective world– leaders in surgical tables and a surgical lights – have very quickly laid the foundation for a new

c business area, Surgical Systems. The recently established busi- i ness area, Surgical Systems, offers customers in health care g efficient, flexible and ergonomic product systems for surgical

r workstations. u S Surgical Systems

urgical Systems have in the past Products used both in hospital operating depart- few years been identified as an Getinge's product range in Surgical ments and intensive care departments. Simportant and attractive comple- Systems covers three product groups: sur- ment to Getinge's existing business, above gical tables, surgical lights and ceiling Customers all in infection control. service units. Customers for the business area's products The combination of the Maquet Surgical tables in its turn consists of a are exclusively in health care, primarily (Germany), which was acquired in Novem- large number of product families. Transfer in-patient care. The trend towards a grow- ber 2000 and ALM (France), which was tables, which allow the patient to stay on ing number of minimally-invasive proce- acquired in January 2001 has rapidly pro- the operating platform during transfers, dures means, however, that demand is ris- pelled Getinge to world No.1 for surgical are considerably more expensive than con- ing from small and specialized clinics, an workstations. Even before these two ventional mobile tables, but in return offer area known as outpatient surgery. important acquisitions, Getinge had a small greater efficiency and ergonomic gains. As previously mentioned, the decision- business for surgical tables and surgical These surgical tables are mainly sold in makers for infection control and surgical lights in its North American business. The Europe. Mobile surgical tables are the equipment are often the same. However, it most important reason for Getinge's pow- most sold tables in the sector and are the can be stated that surgeons and other staff erful entry into the Surgical Systems seg- most dominant type of table in North in operating departments have a consider- ment is that most of the goods that are America. In addition, there are more basic able influence over purchasing decisions, processed in systems for infection control mechanical tables, mainly for the develop- as surgical tables, surgical lights, etc, are consist of surgical instruments from hospi- ing markets. Tables for examinations and important tools for efficient and successful tals' operating departments. gynaecology chairs make up a further operations. In most countries, operating Both equipment for infection control complement. theatres constitute hospitals' largest source and equipment for Surgical Systems are For around a year, the product range of income. Quality and performance pay installation products that are planned in at has also included advanced specialized off, and that is why these are often the an early stage of new construction and tables for image-guided surgery. The table most important decision-making parame- renovations. The decision-makers for both is constructed completely in carbon fibre, ters. businesses are often the same. With a but offers the same performance as an growing market for minimally-invasive ordinary operating table and with the Markets and trends surgical procedures equipment for infec- option for unlimited utilization of different The market for Surgical Systems follows tion control tends increasingly to be x-ray equipment. in most respects the same patterns as the moved to operating departments, where the Accessories that adapt surgical tables Group's other businesses oriented towards expensive instruments can be processed to various disciplines within surgery, for health care. The utilization of capacity in more rapidly and therefore utilized more example orthopaedic, also play an impor- operating theatres in the Western world, efficiently. Getinge, through the acquisi- tant role. The products' reliability, flexibil- and above all the US, is relatively good, tion of Maquet and ALM, has become a ity and user-friendliness are decisive fac- whereas it is lower in Japan, for example. very attractive supplier to health care by tors in decision-making for customers. The number of surgical procedures that now combining two world leaders in one. The product range in regard to surgical can be carried out for a justifiable cost is lights comprises mainly of two product increasing, which means that wider patient Driving forces families with somewhat different charac- groups can be treated, and at the same The driving forces for Surgical Systems teristics plus Fiberlux, a lighting system in time people are living longer. are fundamentally the same as for the process of being introduced that is In the long term, the Surgical Systems Infection Control. The number of surgical based on fibre optics. Important character- market for tables and lights is expected to procedures is steadily growing each year istics for surgical lights are: good light grow by approx. 5% a year, even though as operations become less expensive and quality and focus, good colour reproduc- the business area in the next five -year simpler. Demographic factors are driving tion, low heat output and manoeuvrability. period can expect faster growth due to dis- development and in general it can be said The third and smallest product tribution synergies and technical innova- that the number of surgical procedures on area comprises of ceiling service units, tions. The global market for surgical people over 65 is seven times more than which are used to support medical techni- tables, surgical lights and ceiling service for the rest of the population. Technologi- cal equipment, such as monitors, which units amounts to approx. SEK 7 billion. cal development is faster in Surgical are needed around a surgical workstation. Products for the surgical workplaces Systems than Infection Control, and is The system is also used to convey medical are purchased more and more in integrated therefore an important growth element. gases for anaesthesia and heart/lung systems. Being able to offer surgical Minimally-invasive surgery presents machines. Important decision-making cri- tables, surgical lights and delivery systems new requirements for operating equipment teria for the product area are flexibility from one supplier means flexible and cus- in, for instance, endoscopy or image-guid- and mobility. The products in this area are tomized systems can be supplied. These ed surgery. systems create purpose-specific and

23 Surgical Systems

Distribution and sales Both Maquet and ALM have a very good geographic spread through their own sales companies and a network of agents and distributors. As in the other business areas, the ambition is to serve markets in the long term through own sales compa- nies and market companies. Distribution through own sales companies will be co- ordinated in the current year between Getinge, Maquet and ALM and own sales companies will be a presence in the UK, Germany, Belgium, France, Italy, Spain, the US, China, Singapore and Japan. Sales of the Group's table range will be under the Maquet brand and the lights portfolio will be marketed under ALM. Both brand names are among the most respected in the sector.

Production Maquet's Surgical Academy is an Production in the business area will be organized at two primary centres. Rastatt international meeting place. Surgical in Germany will be responsible for manu- experts from around the world can facturing of surgical tables, while Orléans in France will be responsible for produc- meet here to exchange know-how tion of lights and ceiling service units. The and ideas. production facility in the US for tables and lights that Getinge had prior to the acquisi- tions will be integrated into Rastatt and Orléans, respectively. Production at both Rastatt and Orléans will be primarily oriented towards assem- bly and quality control. Production of sur- gical tables in Rastatt presently involves the Group company, Medikomp GMbH, which makes components for surgical tables, and which has Maquet as its sole customer. The business area is working actively to broaden Medikomp's customer base in order to reduce its dependence on Maquet as a customer, and in time to be able to dispose of this part of production. ergonomic workplaces that can be quickly distinguished: endoscopy and image-guid- Product development adapted for different types of surgery. ed surgery. These trends are central to the Product development is an important cor- New surgical methods have been men- development of new products. The nerstone in the business area's growth tioned as an important driving force and requirements for ergonomics, staff effi- strategy. In total, approx. 6% of sales are an important trend. What the methods ciency and patient comfort are other fac- continually invested in the development of have in common is that they are most tors that affect product development. To new products. Three major projects are often minimally-invasive, which means sum up, it can be said that new surgical currently being pursued in the Surgical that the post-operative recovery time for methods create opportunities for faster Tables business unit. patients is considerably reduced. Often the growth for companies that are oriented A new range of high-specification patient can leave hospital the same day the towards rapidly solving new problems mobile tables is being developed, mainly procedure is carried out. Two trends that with new product innovations. for the American and Japanese market. are important for the business area can be Market shares in these markets are at pres-

24 Surgical Systems

AWIGS combines advanced operating table technology with a CT scanner. In the Surgical lighting systems business unit, there is core competence in the optics field.

ent quite modest and demand is primarily tions, and some 10 systems have been sold. The acquisition of Maquet and ALM, focused on mobile tables. In the surgical lights business unit, plus the existing table business, amounts Purpose-specific workstations, in there is core competence in the optics field. to a global market share in surgical tables which table, lights and ceiling service The business unit has recently launched of 40% with the emphasis outside North units co-ordinate efficiently for surgeons the Prismalix¨ product range with the America. In North America, the market and operating theatre staff, are the key to market's best performance and with a share is 20%. successful procedures. unique breadth and depth of focus. The next largest competitor is the In the current year, the business area Fiberlux, a surgical light based on fibre Japanese company, Mizuho, with approx. will invest around SEK 50 million in two optics with superior characteristics in 18%. Mizuho is strong in Japan and the interesting projects, AWIGS and VIWAS. terms of colour reproduction, light strength US. Steris, with 15% is market leader in AWIGS (Advanced Workstations for and low heat output, is in the final stages the US, but has a more limited geographi- Image Guided Surgery) combines advan- of preparation. cal spread. Other competitors of lesser ced surgical table technology Ð in the form A new development project has been importance are Trumpf Medical (Germany) of carbon fibre allowing 100% transparen- initiated to develop a simpler range of sur- and Echmann (UK). cy Ð with a CT scanner. The product is gical lights, which will be primarily sold The business area's share of the global above all intended for trauma patients and in developing markets and to doctors' market for surgical lights is approx. 20%. enables patient information in real time for practices, a customer segment that has not With the exception of North and Central rapid and cost-effective procedures when been served up to this point. Europe, market positions are strong. The the time factor and right diagnosis are biggest competitors are Berchtold decisive for the patient's survival. The sys- Competitors (Germany) with a market share of 20%, tem has so far been sold to three major The market for Surgical Systems consists and Hereaus (Germany) and Steris (US), hospitals in Switzerland, Germany and of a few global players and a large number both on 15%. Austria. of small players with regional importance. The business area has its weakest posi- VIWAS (Vascular Interventional Few companies within the medical technical tion in the ceiling service unit business Workplace for Advanced Surgery), which sector have chosen to focus on developing unit with 5-10% of the world market. This is based on the same table components as leading positions in not only surgical can be attributed to late entry into the sec- AWIGS, is a carbon fibre table combined tables and surgical lights, but also ceiling tor. The two biggest competitors are with a conventional C-arm. The product is service units. Graeger (Germany) with approx. 20% and mainly intended for cardiovascular opera- Kreuzer (Germany) approx. 15%.

25 Surgical Systems

Risks The business area's activities are, like Infection Control's, directly or indirectly dependent on public financing, which can be affected by political decisions. However, in contrast to Infection Control, no single market accounts for more than 25% of total sales, the US included. Payment risks are minimal as customers are mainly public authorities. Business in developing markets almost always involves a payment safeguard method. No single supplier or customer acco- unts for a significant part of the business.

Objectives and strategies Through establishing the Surgical Systems business area, Getinge has also marked its intention to continue expanding in the sec- tor, and it is possible that the area will AWIGS combines advanced operating table technology with a CT scanner. become Getinge's largest in the near future. In the short-term all efforts and energy will be devoted to creating a solid The objectives of the business area are: The cornerstones of the business area's platform in the areas of surgical worksta- ¥ To be the leading supplier to health care strategy will be clear product leadership in tions, surgical tables, surgical lights and of integrated solutions for surgical work- which the business shall be at the absolute ceiling service units. In the longer term, stations. forefront in meeting new customer needs the Surgical Systems business area offers ¥ To attain annual organic growth of at with adapted technological solutions. interesting expansion possibilities in least 5%. Sales will be system or solution-orient- adjoining product areas for operating the- ¥ That in the long term, the operating ed and have as an aim to assist customers atres and intensive care departments. margin shall be 15%. to cut costs and improve economical oper- ¥ That market shares in prioritized markets ation through co-operation with Getinge. shall reach at least 40%. This requires high competence and a knowledge base among the staff. A com- prehensive and proactive service organiza- tion shall make up an important and prof- itable competitive advantage.

Profit and synergies The combination of Getinge, Maquet and ALM has not only created an interesting business constellation, but also provides potential for good synergies and profit effects. The aim is that in the near future, profitability will be raised to the Group's average profitability level. The operating margins for Maquet's and ALM's tables and lights businesses have in the last financial year amounted to approx. 8% (pro forma). Within a period of one to three years, this margin will amount to between 12 and 15% after goodwill depreciation. The restructuring program that will be implemented this year contains the follow- In the business unit Surgical lights, there is core competence in the optics field. ing components:

26 Surgical Systems

Ceiling service units create flexibility in the design of environments such as intensive care areas

¥ Getinge's factory in Charleston, US will Future expansion In a longer perspective, when the busi- be closed and integrated in Maquet's and Through Getinge's vigorous entry into the ness area has created a solid platform in ALM's European factories. The produc- market for Surgical Systems, a base has surgical workstations, great prospects tion of surgical tables will be co-ordinat- been created for an interesting business remain for expansion within adjacent ed between Maquet and ALM. with good growth prospects. As previous- areas connected with operating theatres ¥ Sales companies for Maquet and ALM ly mentioned, the business area will ini- and intensive care departments. will be integrated in the US, the UK, tially focus on strengthening its position France, Italy and Germany. in surgical tables, surgical lights and ceiling service units. In the two latter These activities are estimated to generate product areas, acquisitions will continue annual savings of approx. SEK 140-150 to be prioritized. million within a two-year period. In addi- Good expansion potential is also tion to pure cost-saving synergies, cross- offered in the next few years by the inter- selling will mean that the business area esting portfolio of new products that meet can grow faster than the market over the the new needs of our customers. Maquet, next five years. Finally, Getinge has ALM and Getinge complement each other decided to sell the business within Maquet very well in terms of geographical cover- involved in robot-based surgery for age and product range, which will facili- orthopaedic implants. This business tate many possibilities for sales growth reported an operating loss of SEK 65 mil- through cross-selling. lion for 1999/2000.

27 Getinge's personnel

Östeuropa 1%

Number of employees by region Number of employees by age group No.of employees by business area

Asia, Australia 2% 40% Africa 1% Extended Care 39% 35% 99121999 2000 Sweden 21% 0012 30%

North America 31% 25% Rest of 20% Scandinavia 2% 15% 10% Eastern Europe1% 5%

Western Europe 42% 0% ÅAgelder 20-3020-30 Age 31-40 Å Agelder 41-50 41-50 Age 51-60 Å Agelder 61-70 61-70 Ålder 31-40 Ålder 51-60 Infection Control 61%

ompetence development is an An important part of the Group's strate- thinking and convert this into production important part of Getinge's busi- gy is to create new relations with the mar- is important to the improvement of market Cness development. By giving staff ket, which is based on competent person- positions. the opportunity to participate and develop, nel. To keep personnel competence high, Getinge therefore co-operates with a a positive corporate culture is created. both in the short and long term, the Group number of universities and technical col- Getinge's organization is divided into invests in different types of internal train- leges, both in Sweden and abroad. some 80 companies, which means that ing programme. responsibility and competence in most In addition to the Group's overall pro- Getinge in figures matters is deeply decentralized. This also gramme, which is carried out at confer- The number of employees in the Getinge means that many employees are involved ences and workshops, the various compa- Group on 31 December 2000 was 5,298 in, and make, important decisions, and nies also carry out their own customized (3,812; 3,724) of which 824 (824; 794) that work assignments are broader and training and competence development pro- were based in Sweden. The total added more qualified. grammes. value per employee was SEK 630,000 The aim is that both staff and the Many of Getinge's business areas work (610; 610) during the financial year. Group will grow Ð it is all about the com- with advanced technology. To maintain a See also notes 20 and 21. pany's survival and future development. high technical level, access new technical

28 Getinge's shares

Getinge's shares The share capital breaks down as follows: Getinge's Class B shares have been listed Type of share No. of shares No. of votes % of capital % of voting rights since 1993 on the OM Stockholm A 3,037,986 30,379,860 6.7 41.8 Exchange's A list. A round lot consists of B 42,383,646 42,383,646 93.3 58.2 200 shares Total 45,421,632 72,763,506 100.0 100.0 In 2000, Getinge's share price reached a high of SEK 119.50 (27 November Development of share capital Year Transaction No. of shares after transaction Share capital after transaction, SEK 2000) and a low of SEK 80 (4 May 2000). 1990 Formation 500 50,000 The final price paid for 2000 was SEK 1992 Split 50:1, nom. SEK 100 to SEK 2 25,000 50,000 112.50. The number of shares traded dur- 1992 Directed new issue 5,088,400 10,176,800 ing 2000 was 24,709,282 (30,284,830 ; 1993 Directed new issue 6,928,400 13,856,800 21,415,283). 1995 Non-cash issue 15,140,544 30,281,088 There are approximately 15,000 share- 1996 Bonus issue 2:1 45,421,632 90,843,264 holders. The percentage of foreign-owned 2001 New issue 1:9 at SEK 100 50,468,480 100,936,960 shares amounts to 15% (14; 22). The per- centage of Swedish institutional owner- The largest shareholders as of February 2001, including known changes1) ship is 54% (50; 51), of which equity No. of class No. of class % of % of funds constitute 21% (18; 23). Company A shares B shares capital voting rights Carl Bennet Medicinteknik AB 3,037,986 3,372,800 14.1 46.4 Share capital and ownership Robur’s equity funds 4,186,200 9.2 5.8 structure Swedish Pension Fund 1-4 Board 3,550,000 8.0 4.8 The share capital in Getinge at year-end Investment AB Latour 2,670,000 5.9 3.7 2000 was SEK 90,843,264 divided Nordea equity funds 2,467,160 5.4 3.4 between 45,421,632 shares. Each share Alecta Pensionsförsäkring (formerly SPP) 1,465,800 3.2 2.0 Skandia 1,366,089 3.0 1.9 has a nominal value of SEK 2. All shares SEB Fonder 994,500 2.2 1.4 carry an equal right to dividends. Every Industritjänstemannaförbundet 907,200 2.0 1.2 class A share carries 10 votes, and every GMO International Funds 754,700 1.7 1.0 class B share carries one vote. Other shareholders 20,649,197 45.3 28.4 Total 3,037,986 42,383,646 100.0 100.0 Dividend policy Future dividends will be adjusted in keep- Shareholder structure of Getinge Industrier AB on 31 December 2000 1) ing with Getinge's profit level, financial No. of Owner- No. of Share- position and future development potential. Holding owners ship % shares holding % The aim of the Board is that dividends 1-500 11,132 75.6 1,920,834 4.2 will comprise in the long-term, approxi- 501-1,000 2,149 14.6 1,781,575 3.9 mately one-third of the profit after finan- 1,001-10,000 1,252 8.5 3,572,924 7.9 cial items at a standard rate of 28% tax. 10,001-100,000 140 0.9 3,840,382 8.5 >100,000 58 0.4 34,305,917 75.5 Getinge is analysed by: Total 14,731 100.0 45,421,632 100.0 1) ABG Securities Source. VPC and SIS owner service Alfred Berg Fondkommission Aros/Maizels Price trend of Getinge’s shares Aragon Fondkommission D.Carnegie Class B-share Aragon Nordic Healthcare Index No. of shares turnover, 1000 Cheuvreux de Virieu Nordic General Index 300 Danske Securities (c) SIX Enskilda Securities

Erik Penser Fondkommission 200 Gudme Raaschou Handelsbanken Investment Banking 8000 Matteus Fondkomission 6000

Nordiska Fondkommission 4000 100 Swedbank Markets 2000

Warburg Dillon Read 80 98 99 00 01

29 IT strategies

The transmission and processing of information is a strategically important area for the Getinge Group.The capacity to utilize information creatively and efficiently is a prioritized area for maintaining and developing our competitiveness.

he transmission and processing of dardization of solutions. This activity will types of sterilization centres. information is a strategically continue in 2001 in order to increase the Reducing time expenditure, and there- Timportant area for the Getinge pace of change and heighten creativity in by the importance of distance, is one of Group. The capacity to utilize information product development and design. the strongest driving forces for Getinge's creatively and efficiently is a prioritized Getinge continues to invest in various IT strategies. area for maintaining and developing our CAD systems, such as Pro Engineer, competitiveness. AUTO-CAD, Solid Work, etc, as well as The time parameters being focused on are For that reason, information technolo- implement these systems within the principally: gy is too important to be left only to spe- Group. A further initiative, that aims to ¥ Time to market (from the time a compa- cialists in that field. It is a matter for integrate these systems with our PDM and ny in the Group defines a customer need Group management Ð for the Group's MRP systems, will be prioritized in 2001. to when the company can start to satisfy global IT organization Ð and for all func- Our attention has previously been that need with a product or service) tions in the company. focused on internal processes. Today its ¥ Time to customer (from the time the Like most companies, Getinge used shifting fast to external processes, to rela- customer orders to when the customer information technology from the begin- tions with customers, suppliers and busi- receives his delivery) ning to automate and efficiency-enhance ness partners. Getinge develops solutions ¥ Time to acceptance (from the time the administrative processes. Continued invest- that go beyond a product's physical char- company launches a new product to ments on shortening reporting times and acteristics and complement it with servic- when potential customers accept it as the development of Getinge's "Manage- es that create extra benefits and give more perfectly satisfactory) ment System" have been a prioritized area value for the customer. ¥ Time to market share (from the time during the year. The Infection Control business area has that a new product is available for cus- During the year, Getinge has consoli- during the year further developed the IT tomers to when the company has won a dated development of its business system aid, T-DOC, to further enhance quality profitable market share). in order to increase the usability and stan- assurance and traceability for different

30 Getinge and the environment

Clear focus on environmental work ¥ A striving to reduce the use of raw mate- Wastewater is purified to a better stan- Getinge strives for as much openness as rials in all processes and recycle in all dard than the incoming water. possible in environmental work. This cases where it is practicable, rather than increases the possibilities for parties inter- throw away, and to encourage the recy- Routines for chemical handling ested in the Group to examine the business cling and use of recycled material where All companies in the Group have during and assess its products. It is also essential it can be justified by environmental, the year revised routines for chemical han- for all members of staff to contribute to technical and financial reasons. dling, which are used in the introduction achieving environmental goals. ¥ The building-in of energy and water-effi- of new chemicals in production. Further- ciency in our products, services and more, there is active outsorting of old and Environmental philosophy buildings, as well as considered handling environmentally-hazardous chemicals in Our vision is to be and remain the world's of these natural resources within the order to comply with new environmental leading company in the business areas: entire business. regulations. Infection Control, Extended Care and ¥ Establishing of a working environment Surgical Systems. In order to realize this that promotes safety for all our employ- Transport vision, Getinge must also be sector-leaders ees and protects their health. A logistics-enhancement project was start- in environmental issues. ¥ Compliance with, and where suitable, ed during the year. This has resulted in Routines and control systems in the exceeding of, requirements in all appli- totally new product transport solutions, environmental area are based on facts as cable environmental legislation, regula- direct from the manufacturing company to well as society's opinions. Our processes tions and guidelines. Local legal require- the end customer, which generates lower and products have an impact on the envi- ments will be regarded as a minimum emissions than previously. ronment, which we must be sensitive to, level. Even here the Group sets high demands as both customers and authorities place a for transport companies to reduce their great emphasis on environmental issues, Important environmental improve- emissions. when our products and concepts are dis- ments in 2000 cussed. It is natural for Getinge to respond Use of materials Long-term focus to society's demands and wishes in all The Group's products are in many respects Although the changes taking place the areas. complex and contain many different mate- world at large are rapid, the environmental Consideration for the environment will rials and components. In all development issues we have to consider are significant contribute to business success. The aim is projects currently in progress the product from a long-term perspective. The demand always that business objectives will be in goes through scrutiny in order to maxi- on us to create the biggest possible bene- line with environmental consideration, and mize its capacity to be recycled. fits, at the lowest possible cost, and with in such a way that costs are weighed The recently launched products from the least possible impact on the environ- against benefits. These objectives help to the Extended Care business area (System ment, will remain. maintain competitive advantages and to 2000, Carendo, Encore) can, in principle, Getinge continues to work for a sound contribute to sustainable and long-term be 100% recycled. holistic view of products and environmen- development. tal impact. Sorting at source Environmental policy Activities involving sorting at source are The overall environmental objective is to continuing and are constantly adapted. minimize products' impact on the environ- Recycling stations for manufacturing- ment throughout their life cycles, by using related waste products are now installed at resources efficiently in product develop- all production companies. ment and design, in manufacturing pro- For example, Arjo Hospital Equipment cesses and while in operation. AB has been named by the Eslöv local authority as the best company in its region In practice this means: for sorting at source, with 96% recycling. ¥ Environmental consideration is instilled The remaining 4% is disposed of in accor- right from the start in our development dance with relevant laws and routines by activities. various specialist companies. ¥ The use of life cycle analyses to under- stand our products effects on the envi- Finishing facilities ronment and optimize the balance Discharges from the Group's various fin- between environmental impact and prod- ishing facilities are far below permitted uct performance. levels. (For instance, AHE AB has emis- ¥ Continual improvement of our processes sions of 500 kg, compared with the per- and their efficiency. mitted level of 6,000 kg).

31 Financial risk management

ost of the Getinge Group’s rent rate, and the difference between the the average fixed interest term for Group operations are located outside current rate and the rate of the due agree- borrowings was 2.5 months. The average MSweden. This situation entails ment is recorded as a debt or an asset in duration for borrowings can be prolonged exposure to different types of risk that may the balance sheet, which reduces in line with the help of derivative instruments to cause fluctuations in results, cash flow and with currency flows and the utilization of limit the negative effects of interest rate equity due to changes in exchange rates forward agreements. hikes. The company had not entered into and interest rates. In addition, the Group is The table below indicates the Group’s any such derivative agreements at the end exposed to refinancing and counter-party sensitivity to changes in exchange rates of the year. risks. for SEK against USD, EUR and GBP. The Group’s liquid assets have been The primary role of the parent compa- The analysis is based on exchange rate placed in accounts with floating interest ny’s treasury unit is to support business changes of 2%, 5% and 10%. The effect rates with the aim of non-essential funds activities and identify the best way of lim- on profits is indicated as a percentage of being used to amortize existing loans. The iting the Group’s financial risks in line the profit before tax, and with or without Group’s usually sound cash flow is also a with the Board’s established policies. hedging measures. reason for working with relatively short- Getinge’s financial activities are centrali- term fixed interest for borrowings. zed to benefit from economies of scale Exchange rate If the average interest rate for curren- and to facilitate follow-up risks. fluctuations (+/–) 2% 5% 10% cies represented in the Group’s borrow- Effect on profits without hedging ings at the end of the year changed Currency risks USD 2% 5% 11% momentarily by 1 percentage point this Exchange rate fluctuations affect the EUR 2% 4% 9% would affect profits by SEK +/- 30.2 mil- Group’s profits and shareholder’s equity GBP 1% 2% 4% lion per year. in different ways: Effect on profits with hedging ¥ Sales income and production expenses in USD 1% 2% 4% Refinancing risks foreign currencies entail a transaction EUR 1% 3% 5% Long-term binding credit facilities are risk that can affect Group profits. GBP 1% 1% 3% used to hedge future raising of capital and ¥ Conversion of foreign subsidiaries’ prof- A change in the currency above against SEK refinancing of loans. Since April 1999 the its into SEK entails a conversion risk affects profits by the same sign as the figure Group has a confirmed loan facility of that can affect Group profits. indicated USD 200 million with a group of banks. ¥ When the foreign subsidiaries’ net assets The agreement matures in the spring of are converted into SEK there is a con- Conversion risk 2004. At the beginning of 2001 the Group version risk that can affect the Group’s The majority of risk arising from conver- established a loan facility in Germany shareholders’ equity. sion of foreign subsidiaries’ operating worth a total EUR 110 million as a part of profit was hedged during the year by the the Group’s financing. In addition to these Transaction risk majority of the budgeted profit in USD, credit facilities the Group uses short-term Group transactions in foreign currency EUR and GBP being sold in forward con- credit facilities with banks in those coun- consist of the income generated by export tracts at the beginning of the year. tries where the need arises. sales. The most important currencies are The Group’s net assets in foreign cur- Current financing for 2000 was mainly USD, EUR and GBP. rency, i.e. shareholders’ equity in foreign handled by the use of the Group’s short- Expected net flow in foreign currency subsidiaries, were hedged during the year term credit facilities. will be hedged according to the Group’s in loans and forward contracts. Henceforth, policy for the coming 6-12 months. The hedging will be made through loans in Counter-party risks deciding factor for the length of hedging foreign currencies matching net assets in The Group’s liquidity is placed as bank will be governed by the security of the the currency. The termination of these for- deposits and thus has negligible credit underlying forecast, exchange rate and ward contracts will take place as they fall risks. The risk of a counter-party not com- state of the market in general. due during Q1 2001. plying with commitments according to Hedging of currency always aims to financial contracts is limited by the choice secure the value of expected net commer- Interest rate risks of credit-worthy counter parties and limit- cial flows in foreign currencies and occurs Changes in market interest rates affects ing involvement to the said party. The mainly with the help of forward contracts. the Group’s interest net. How quickly Group’s total risks in this case should be Net sales and purchase costs, which are interest rate changes have an effect on net considered to be limited. hedged, are entered in the income state- interest depends on the fixed interest term ment at the original forward rate. When of the loan. The financial policy of the Net borrowings per currency the forward agreement falls due, a new Group states that the fixed interest term in 31 December 2000 agreement is signed covering the part of borrowings should be no more than 2 USD 25% the previous agreement that does not years. The Group has chosen to work with EUR 51% match the currency flow up to the due shorter fixed interest terms for its borrow- GBP 2% date. This sum of foreign currency is ings, which has meant lower borrowing SEK 22% bought or sold on the due date at the cur- costs over time. On 31 December 2000 100%

32 Directors’ report

The Getinge Group is active in its Infection Control business area with products and systems for combating infection, and in its Extended Care (previously Geriatrics) busi- ness area with lifting and hygiene products and accessories used in caring for the eld- erly and disabled. A new independent business area, Surgical Systems, was formed at the start of 2001 and is based upon two newly acquired companies.

Orders received Accounts receivable amounted to SEK development with the acquisition of com- Orders received by the Getinge Group 1,999.6 million. Excluding Maquet the panies that have strong product ranges, rose by 6.3% to SEK 5,243.3 million figure is SEK 1,575.1 million (1,344.5 m; Parker Bath Ltd of New Milton, UK, was (4,932.2 m; 4,304.0 m). Adjusted for 1,322.7 m), corresponding to 30.0% acquired. The company develops and acquisitions and exchange rate fluctua- (27.5%; 30.4%) of net sales. Operating manufactures bathing systems, mainly for tions, orders received were up by 2.0%. capital within the Group was SEK 3,356.8 the semi-institutional healthcare market. The Extended Care business area saw million (2,988.2 m; 2,610.6 m). The return At the time of the acquisition the compa- volumes develop well on the markets of on operating capital was 20.8% (23.2%; ny had sales of around SEK 150 million the UK and the US, which began the year 25.0%). Goodwill totalled SEK 2,450.9 and employed 140 people, mainly in the sluggishly. million (1,012.7 m; 1,034.2 m) at the end UK, France and the US. Infection Control ended the year of the financial year. In December Getinge acquired the strongly in terms of volumes, with a con- Maquet Group, the world’s leading manu- tinued healthy demand in the US from Investments facturer of surgical tables, with a market hospitals and life-science customers. Net investments in machinery, equipment share of around 30%. Maquet has its head and buildings, but excluding rental equip- office and manufacturing in Germany and Sales and profits ment, amounted to SEK 110.3 million sales companies in France, Belgium, Italy, Net sales climbed by 7.6% to SEK (167.4 m; 131.8 m). The year’s invest- the UK, the US and Japan. Maquet also 5,253.5 million (4,884.7 m; 4,345.0 m). ments refer mainly to investments in pro- manufactures surgical lights and ceiling Adjusted for acquisitions and exchange duction facilities, tools and IT. service units. Net sales for the last finan- rate fluctuations, net sales rose by 3.3%. cial year were just over SEK 1.3 billion The Getinge Group’s operating profit Acquisitions and the company has around 1,300 rose 4.0% to SEK 720.2 million (692.2 m; During Q2, Gestion Techno-Médic Inc of employees. 668.8 m), which is equivalent to 13.7% Quebec, Canada, and Lenken Healthcare At the beginning of the 2001 financial (14.2 %; 15.4%) of net sales. Ltd of Ireland were acquired. Techno- year in January, ALM of Orléans France Net financial items totalled SEK Ð96.0 Médic’s main product is a unique ceiling was acquired. ALM constructs and manu- million (-55.0 m; Ð65.0 m), of which net hoist that has been added to Arjo’s exist- factures surgical lights, surgical tables and interest items made up SEK Ð89.6 million ing range and is being marketed by Arjo’s ceiling service units. Sales for 2000 were (–51.7 m; –62.7 m). The Group’s profit sales organisation. At the time of the around SEK 660 million with a total of before tax fell 2.0% to SEK 623.7 million acquisition the company had 25 employ- around 300 employees. The company has (636.2 m; 602.6 m), corresponding to ees and had sales of around SEK 22 mil- its own sales companies in the UK, the 11.9% (13.0%; 13.9%) of net sales. lion. Lenken Healthcare, the company’s US, France, Italy, Spain and China. distributor for more than 20 years, sup- ALM’s global market share for surgical Tied-up capital plies equipment for hygiene systems, lights is around 20%. The total value of stocks at the end of patient handling and wound care products, The acquisitions of Maquet and ALM 2000 was SEK 1,268.7 million. Excluding and has sales of around SEK 65 million. have quickly laid the foundation for an the Maquet Group, whose balance sheet The company has sales offices in Belfast interesting and expansive new business was consolidated for the first time on 31 and Dublin and in June had 58 employees. area Ð Surgical Systems. The business December 2000, the total value of stocks The acquisition strengthens the Group’s area’s objective is to offer customers was SEK 893.0 million (765.3 m; 770.6 m), market position in Ireland. effective, flexible and ergonomic product corresponding to 17.0% (15.7%; 17.7%) In September, as part of the Group’s systems for surgical procedures. of sales. strategy to complement in-house product

33 Directors’ report

Restructing reserve Financial position and equity/ Getinge Industrier has no nominating At the end of 2000, the restructuring assets ratio committee. The Chairman of the Board reserve amounted to SEK 558.1 million The Group’s net debt was SEK 3,819.8 meets with the company’s major share- after an allocation of SEK 555.2 million million (1,514.9 m; 1,722.4 m) and the holders prior to the AGM in order to reach in connection with acquisitions in 2000. cash flow after investments in tangible agreement concerning the composition of The major part of this relates to Maquet fixed assets was SEK 88.9 million (437.1 the Board and the Board procedures. and the newly created business area, m; -13.5 m). The fixed procedures for the Board Surgical Systems. The allocated amount is Shareholders’ equity at year-end was were not changed during the year. intended for measures in 2001-2002. SEK 1,931.0 million (1,560.8 m; 1,221.0 At the first Board meeting of the year m), which together with minority interests the Board considers the observations of Product development of SEK 8.8 million gave an equity/assets the Group’s auditors made during their Product development is one of the corner- ratio of 24.2% (35.7%; 27.6%). To inspection of the Group’s internal control stones of the Group’s organic growth. strengthen the equity/assets ratio after bor- and accounts. The Getinge Board has not Getinge does not intend to perform all rowing that occurred in conjunction with therefore found any need to form a special development in-house, and is happy to co- the acquisitions of Maquet and ALM, a accounting committee. operate with competent external partners. new share issue is planned for spring In this way the Group has access to new 2001. Outlook and commercially viable technology. The Infection Control business area con- Global development is continuously moni- Personnel siders that the US markets and developing tored and a large number of potential proj- There were 5,298 (3,812; 3,724) employ- markets will develop well, while demand ects are evaluated annually. ees on 31 December 2000, of whom 824 in Western Europe continues to be diffi- Acquisition of suitable companies is (824; 794) were employed in Sweden. cult to judge. The effects of the cost also a complement to internal product adjustments during the year and product development. Such has been the case for The work of the Board and launches will contribute to improved com- the above-mentioned acquisitions of ownership issues petitiveness. Gestion Techno-Médic and Parker Bath. The Getinge Board consists of seven For the Extended Care business area, members without deputies elected by the demand has improved considerably in the Environmental issues AGM and two members with deputies US market. New product launches and a Activities are constantly reviewed regard- chosen by the employees. gradual extension of the sales organization ing their environmental effects to ensure During 2000, Getinge’s Board held 10 mean that development for the business the Group meets by a wide margin the minuted meetings. The Board also held a area looks positive for this year. standards set by the authorities for busi- meeting in January 2001 at which the The newly established Surgical nesses. Existing laws and conditions are profits for 2000 were addressed and there- Systems business area, which has quickly regarded as minimum standards for activi- after published. The Board addressed the grown to become an important part of the ties. stated points that were taken up at each Group’s operations, is expected to con- Board meeting in accordance with the tribute to improved profits per share dur- Taxes work plan of the Board such as state of ing the current year. The Group’s total taxes amounted to SEK the business, budgets, annual accounts and 155.9 million (158.5 m; 125.9 m), corre- interim reports. Furthermore, comprehen- sponding to 25.0% (24.9%; 20.9%) of pre- sive issues were addressed concerning tax profit. The fact that the Group’s profit company acquisitions and other invest- has, in part, been generated by foreign ments, long-term strategies, structure and subsidiaries with a lower tax burden, and organizational changes and budgets. that the Group can utilize loss deductions, Individual Board members also assisted explains why the tax burden falls short of Group management in various strategic the level based on the Swedish corporate issues. tax rate of 28% (see note 6).

34 Proposed allocation of profits

Proposed allocation of profits The Group’s unrestricted shareholders’ equity, as per the Balance Sheet, totals SEK 1,005.4 million.

The following Parent Company earnings are at the disposal of the Annual General Meeting: Net profit for the year SEK 188.2 m Profit carried forward SEK 176.3 m Total SEK 364.5 m

The Board and the Chief Executive Officer propose that a dividend of SEK 3.50 per share should be distributed to shareholders SEK 159.0 m that the following sum should be carried forward SEK 205.5 m Total SEK 364.5 m

With regard to the Group’s and the Parent Company’s profits and position in general, reference is made to the following Account documents.

Getinge, 8 March 2001

Fredrik Arp Carl Bennet Bo Damberg Chairman

Anders Frick Kerstin Paulsson Mats Wahlström

Bent Carlsen Johan Malmquist Gert Klarén Swedish Metal Workers’ President and CEO Swedish Foremans’ and Union Representative Supervisors’ Representative

Our Auditors Report was submitted on 8 March 2001

Mats Fredricson Jan Nilsson Authorized Public Accountant Authorized Public Accountant Arthur Andersen AB

35 Income Statements

The Group Parent Company SEK m Note 2000 1999 1998 2000 1999 1998 Net sales 1 5,253.5 4,884.7 4,345,0 – –– Cost of goods sold 24 –3,056.2 –2,727.0 –2,405.1 – –– Gross profit 24 2,197.3 2,157.7 1,939.9 –––

Selling expenses 24 –942.0 –918.8 –803.9 – –– Administrative expenses 22,24 –474.4 –458.8 –391.1 –23.8 –20.0 –27.7 Research and Development costs 24 –101.5 –101.8 –108.6 – –– Other operating income 26.9 16.0 22.5 – –– Other operating expenses 24 –9.3 –2.1 –5.9 – –– Items affecting comparability 23 23.2 – 15.9 – –– Operating profit/loss 1,2,20,21 720.2 692.2 668.8 –23.8 –20.0 –27.7

Interest income 3 18.7 25.9 23.4 111.1 87.3 87.8 Interest expenses 3 –108.3 –77.6 –86.1 –122.7 –94.5 –107.4 Other financial items 4 –6.4 –3.3 –2.3 208.1 226.0 301.9 Associated companies’ operating profit –0.5 –1.0 –1.2 –0.5 –1.0 –1.2 Profit before appropriations 623.7 636.2 602.6 172.2 197.8 253.4

Appropriations 5 – ––17.4 0.1 –0.1 Profit before tax 623.7 636.2 602.6 189.6 197.9 253.3

Taxes 6 –155.9 –158.5 –125.9 –1.4 –0.7 –45.1 Net profit for the year 467.8 477.7 476.7 188.2 197.2 208.2

36 Balance sheets

The Group Parent Company SEK m Note 2000 1999 1998 2000 1999 1998 ASSETS Fixed assets Intangible fixed assets 2 2,450.9 1,012.7 1,034.2 – –– Tangible fixed assets 2,19 1,228.1 748.3 684.1 4.7 3.3 3.4 Shares in subsidiaries 7 – ––2,877.8 2,879.0 2,876.8 Shares in associated companies 8 3.2 3.7 4.2 3.2 3.7 4.2 Long-term receivables 60.8 15.5 8.4 14.1 7.9 – Deferred tax liability 6 327.4 48.4 63.5 – –– Total fixed assets 4,070.4 1,828.6 1,794.4 2,899.8 2,893.9 2,884.4

Current assets Stock-in-trade 9 1,268.7 765.3 770.7 – –– Advances to suppliers 3.2 1.9 1.1 – –– Short-term receivables 10 2,453.7 1,622.9 1,663.9 3,682.8 2,097.0 2,366.1 Liquid funds 11,14 235.4 158.8 196.6 1.6 42.0 71.5 Total current assets 3,961.0 2,548.9 2,632.3 3,684.4 2,139.0 2,437.6 TOTAL ASSETS 8,031.4 4,377.5 4,426.7 6,584.2 5,032.9 5,322.0

SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital 12,13 90.8 90.8 90.8 90.8 90.8 90.8 Restricted reserves 834.8 648.1 785.4 2,044.7 2,044.7 2,044.7 Total restricted shareholders’ equity12,13 925.6 738.9 876.2 2,135.5 2,135.5 2,135.5 Profit brought forward 537.6 344.2 –131.9 176.3 138.1 77.5 Net profit for the year 467.8 477.7 476.7 188.2 197.2 208.2 Total unrestricted shareholders’ equity12,13 1,005.4 821.9 344.8 364.5 335.3 285.7 Total shareholders’ equity 1,931.0 1,560.8 1,221.0 2,500.0 2,470.8 2,421.2

Minority interests 8.8 ––– ––

Untaxed reserves –––0.0 17.4 17.5

Provisions Provisions for pensions, interest-bearing 14 1,121.7 26.7 27.8 – –– Provisions for deferred tax 6 – ––45.1 45.1 45.1 Restructuring reserves 15 558.1 54.5 154.3 – –– Other provisions 248.7 38.0 49.1 – –– Total provisions 1,928.5 119.2 231.2 45.1 45.1 45.1

Long-term liabilities Interest-bearing long-term loans 14,19 14.5 15.5 50.2 – –– Other long-term liabilities 52.6 40.2 37.3 – –– Total long-term liabilities 67.1 55.7 87.5 –––

Current liabilities Interest bearing short-term loans 14,16,19 2,919.0 1,631.5 1,841.0 3,979.9 2,484.0 2,807.6 Other short-term loans 6,17 1,177.0 1,010.3 1,046.0 59.2 15.6 30.6 Total short-term loans 4,096.0 2,641.8 2,887.0 4,039.1 2,499.6 2,838.2 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 8,031.4 4,377.5 4,426.7 6,584.2 5,032.9 5,322.0

Pledged assets 18 27.1 17.7 21.7 – –– Contingent liabilities 18 140.4 83.9 172.0 92.2 116.6 153.0

37 Funds Statements

The Group Parent Company SEK m 2000 1999 1998 2000 1999 1998 Operations Operating profit/loss 720.2 692.2 668.8 –23.8 –20.0 –27.7 Depreciation 195.1 188.2 149.7 0.3 0.1 0.2 Financial items –96.0 –55.0 –65.0 200.2 218.8 283.4 Share in profits of associated companies –0.5 –1.0 –1.2 –0.5 –1.0 –1.2 Taxes –120.8 –100.3 –111.0 –1.4 –0.7 – Cash flow from operations before changes to operating capital 698.0 724.1 641.3 174.8 197.2 254.7

Changes in working capital Stock-in-trade –106.4 7.8 –39.0 – –– Rental equipment –25.6 –15.7 –9.6 – –– Current receivables –263.3 40.7 –337.5 –28.0 10.4 –12.9 Current operating liabilities –48.4 –33.6 –18.6 43.6 –15.0 17.8 Restructuring reserves utilised –55.1 –118.8 –118.3 – –– Cash flow from operations 199.2 604.5 118.3 190.4 192.6 259.6

Direct net investments in machinery, fixtures & fittings and buildings –110.3 –167.4 –131.8 –1.7 ––0.1 Cash flow after investments in tangible fixed assets 88.9 437.1 –13.5 188.7 192.6 259.5

Company acquisitions and sales of operations –2,114.5 –35.4 –579.6 –2.0 –1.7 352.5 Disposal of Lifco excluding net liabilities – – 622.5 – –– Cash flow after investment operations –2,025.6 401.7 29.4 186.7 190.9 612.0

Change in long-term receivables –32.8 15.8 –1.3 –6.2 –7.9 – Change in deferred tax –30.2 –43.2 –9.7 – –– Dividend paid, cash –159.0 –147.6 –124.9 –159.0 –147.6 –124.9 Dividend paid, Lifco – ––510.5 – ––536.1 Translation differences –57.3 –19.2 –29.5 – –– Decrease + /Increase – of interest-bearing net debt* –2,304.9 207.5 –646.5 21.5 35.4 –49.0 *See notes 14 and 25

38 Notes to the Accounts

Consolidated Accounts The Parent Company, or Parent income statement and are forward covered Getinge's accounts comprise the Parent Companies of Sub-Groups, raises loans in at the original forward rate. When the for- Company and all companies in which foreign currencies as a balance against net ward agreement falls due, a new agree- Getinge Industrier AB owns more than assets in foreign subsidiaries. The ment is signed covering the part of the half of the shares’ voting rights. The exchange rate differences on these loans, previous agreement that does not match accounts have been drawn up in accor- after deductions for fiscal effects attributa- the currency flow up to the due date. This dance with the Swedish Financial ble thereto, have been carried directly to sum of foreign currency is bought or sold Accounting Standards Council’s recom- equity in the Consolidated Accounts to the on the due date at the current rate, and the mendations. extent that they correspond to the transla- difference between the current rate and Acquired companies are consolidated tion difference in the shareholders’ equity the rate of the due agreement is recorded in the Consolidated Accounts in accor- in the foreign subsidiaries hedged in this as a debt or an asset in the balance sheet, dance with the acquisition method. Arjo is fashion. which reduces in line with the utilization reported from the 1995 merger in accor- of currency flows and forward agreements. dance with the pooling method. Revenue recognition Due to this principle Getinge reported Companies acquired during the year Income is included in the accounts princi- an asset worth SEK 85.0 million (32.5 m; have been included in the Consolidated pally when all risks and rights connected 15.6 m) at the end of the financial year. Income Statement from the date of acqui- with the ownership have been transferred sition. Maquet was acquired on 31 to the buyer, which usually occurs in con- Tangible fixed assets December 2000 and has not affected the nection with delivery. For customer-spe- Tangible fixed assets, consisting of Group’s Consolidated Income Statement cific orders where work in progress is machinery, equipment and properties, are Robot operations within Orto Maquet more than 90% complete and it is possible reported at their acquisition value with have not been consolidated because a to calculate remaining costs with full cer- deductions for the accumulated deprecia- decision has been made to sell off this tainty, the total order value is included in tion according to plan. operation. An assessment of deferred tax accrued income in the Balance Sheet and on acquired untaxed reserves is made in provision is made for the remaining costs Depreciation according to plan conjunction with the acquisition. Deferred under accrued costs. Depreciation according to plan is based on tax on the difference between the calculat- the acquisition values of the assets and ed market values of assets and liabilities Foreign currencies their estimated economic lifespans. and the fiscal residual value is calculated Receivables and liabilities in foreign to the extent that the difference is not currencies Depreciation according to plan, % included in untaxed reserves. When elimi- Receivables and liabilities in foreign cur- Production machinery 7 nating internal transactions, the fiscal effect rencies are valued at the closing day rates Machines and equipment 7 is also calculated on the basis of rates of and unrealised exchange rate profits and Production tools 20 taxation then applicable in the respective losses are included in the results. Future Vehicles 25 country. hedged receivables and liabilities have Computer equipment 33 Untaxed reserves earned after the been valued at the valid futures rate. Rental equipment 20 acquisition are, in the Consolidated Advances from customers are booked Buildings 3 Balance Sheet, divided into deferred tax at the exchange rates applying when each Land improvements 3 liability and restricted shareholders’ equi- advance was received, since a liability to Land 0 ty, employing the effective rate of taxation pay is not envisaged. in the respective country. Exchange rate profits (losses) on oper- Consolidated goodwill arising in conjunc- Getinge employs the current method ating-related receivables and liabilities are tion with corporate acquisitions is depreci- when converting foreign subsidiary com- reported as other operating income (oper- ated linearly according to the plan drawn panies' Balance Sheets and Income ating costs). up for each acquisition over their antici- Statements. This means that all assets and Exchange rate differences regarding pated economic life. For long-term strate- liabilities in the subsidiaries are converted financial assets and liabilities are reported gic corporate acquisitions, the deprecia- at the closing day rate, whilst all items in under Other Financial Items. See also tion period can be extended to up to 20 the Income Statements are converted at above regarding translation differences, years, from the maximum 10-year period the average rate. The translation differ- etc. under "Consolidated Accounts". otherwise applied. This is the case with ences arising in this context are an effect the goodwill item in most of the Group’s partly of the difference between the aver- Hedging of future flows acquisitions, when the companies referred age rates of the Income Statements and Futures contracts relating to the hedging to are of a medical-technical nature with the closing day rates, and partly of the fact of future in and out payments in foreign base products that are deemed of strategic that net assets are converted at a different currency are not valued at closing day rates. importance for the Group. rate at the end of the year than at the Hedging of currency always aims to beginning of the year. Translation differ- secure the value of expected net commer- Stock-in-trade ences are not carried forward in the cial flows in foreign currencies and occurs Stock has been valued at whichever is the Income Statement and are instead carried mainly with the help of futures. Net sales lower of the acquisition value in accor- directly to equity. and purchase costs are entered in the dance with the first in/first out (FIFO) principle, and true value. The stock-in-

39 Notes to the Accounts

trade includes a share of indirect costs that of tax paid, when this is current, and part- reported as assets at the value of the mini- is related to this. With regard to customer- ly of deferred tax on transitional reserves, mum leasing fees, and with deductions for specific orders, see above under the head- which are attributed to the company’s prof- the annual depreciation, in the same man- ing "Revenue Recognition". it on the transfer of shares in a subsidiary ner as if the asset was owned. Remaining to another company within the Group. payment liabilities are reported under Accounts receivable Tax legislation in Sweden allows for Liabilities. Accounts receivable are reported net after allocation to special reserves and funds. allocation for uncertain accounts receiv- Companies can thus, within certain limits, Surplus funds from SPP able. Allocations for uncertain accounts dispose and retain reported operating prof- The long-term part of the remaining sur- receivable are based on individual assess- its without being immediately taxed. The plus funds at SPP at the end of the year ments of the accounts receivable, taking untaxed reserves are subject to tax only have been discounted to a current value at expected customer losses into account. when they are dissolved for reasons other an interest rate of 7% and is reported than covering losses. Taxation of the tran- under Long-term financial receivables as Research and development sitional reserves for the transfer of shares SEK 19.7 million. The short-term part Research and development costs are carried within the Group is current for the Parent amounting to SEK 8.8 million is reported to operating costs directly when they arise. Company if, and when, the transferred at a nominal value except when, due to shares are sold out from a Sub-Group to a the individual company’s situation, market Pensions new owner outside the Group. values are used. A total of SEK 10.1 mil- All pension commitments not taken over lion of SPP's surplus funds was received by insurance companies, or otherwise Financial leasing during the year. The receivable related to hedged through funding by an external Properties, which are utilized under leas- surplus funds was worth a nominal total party, are reported under liabilities in the ing agreements on terms and conditions of SEK 35.8 million as of 31 December Balance Sheet. whereby the Getinge Group enjoys bene- 2000. Based on known conditions this fits thereof and bears the financial risk corresponds to bonus repayments over Taxes associated with the use of the properties approximately 6 years. The Parent Company's taxes consist partly for the majority of their economic life, are

Notes

NOTE 1 Net sales and profit per division and geographic market Net sales Operating profit SEK million 2000 1999 1998 2000* 1999 1998* Geographic market Nordic region 414.1 408.9 364.0 111.0 101.2 121.1 Other Western Europe 2,223.7 2,144.5 1,826.0 368.9 365.7 307.8 Eastern Europe 91.3 70.4 156.5 7.1 3.6 8.1 US & Canada 2,039.4 1,866.0 1,662.8 150.7 197.4 186.1 Asia, Oceania, Africa, Middle East, Latin America 485.0 394.9 335.7 59.3 24.3 29.8 Total 5,253.5 4,884.7 4,345.0 697.0 692.2 652.9 Division Infection Control 3,081.2 2,811.1 2,615.7 367.5 365.4 363.0 Extended Care 2,110.9 2,007.7 1,663.0 322.9 320.3 282.9 Other 61.4 65.9 66.3 6.6 6.5 7.0 Total 5,253.5 4,884.7 4,345.0 697.0 692.2 652.9 * 1998, before the disposal of the Distribution (Lifco) business area, SEK 15.9 million, 2000 excl. repayment of SEK 23.2 million from SPP.

NOTE 2 Acquisition values of fixed assets, etc. The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Goodwill Opening acquisition value 1,206.4 1,169.8 1,040.0 – –– Purchases incl. corporate acquisitions 1,411.3 33.6 575.1 – –– In new companies, on acquisition 12.4 ––– –– Disposals/scrapping –1.3 –3.0 –484.8 – –– Translation difference 94.7 6.0 39.5 – –– Closing accumulated acquisition value 2,723.5 1,206.4 1,169.8 – –– Opening depreciation –193.7 –135.6 –139.2 – –– In new companies, on acquisition –0.1 ––– –– Disposals/scrapping 1.3 2.5 51.8 – –– Depreciation for the year –65.8 –60.7 –43.0 – –– Translation difference –14.3 0.1 –5.2 – –– Closing accumulated depreciation –272.6 –193.7 –135.6 – –– Closing residual value according to plan 2,450.9 1,012.7 1,034.2 – ––

Disposals/scrapping for 1998 refers entirely to the goodwill related to the disposed company, Lifco.

40 Notes

NOTE 2 Acquisition values of fixed assets, etc. cont. The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Tangible fixed assets, total Opening acquisition value 1,494.6 1,300.7 1,137.0 4.0 3.9 4.1 Purchases 148.7 270.9 225.0 1.7 0.1 0.1 In new companies on acquisition 1,009.6 2.7 215.5 – –– Disposals/scrapping –57.6 –87.1 –310.6 – ––0.3 Reclassification –9.0 ––– –– Translation difference 80.4 7.4 33.8 – –– Closing accumulated acquisition values 2,666.7 1,494.6 1,300.7 5.7 4.0 3.9 Opening depreciation –746.3 –616.7 –547.2 –0.8 –0.5 –0.6 In new companies on acquisition –569.3 –26.0 –115.6 – –– Disposals/scrapping 46.3 29.4 170.1 – – 0.3 Depreciation for the year –129.3 –127.5 –106.8 –0.2 –0.2 –0.2 Reclassification 2.7 ––– –– Translation difference –42.7 –5.5 –17.1 – –– Closing accumulated depreciation –1,438.6 –746.3 –616.6 –1.0 –0.7 –0.5 Closing residual value according to plan 1,228.1 748.3 684.1 4.7 3.3 3.4

Disposals/scrapping for 1998 includes SEK -73.7 million of tangible fixed assets related to the disposed company, Lifco.

Buildings and land Opening acquisition value 507,7 507.7 482.3 3.4 3.4 3.4 Purchases 32.4 18.7 79.8 0.9 –– In new companies on acquisition 444.7 – 40.7 – –– Disposals/scrapping –6.7 –18.8 –107.3 – –– Reclassification 14.5 ––– –– Translation difference 22.5 0.1 12.2 – –– Closing accumulated acquisition values 1,015.1 507.7 507.7 4.3 3.4 3.4 Opening depreciation –155.5 –138.8 –145.1 –0.4 –0.4 –0.3 In new companies on acquisition –168.9 ––6.0 – –– Disposals/scrapping 2.1 2.0 26.7 – –– Depreciation for the year –19.3 –18.3 –11.4 – ––0.1 Reclassification 2.5 ––– –– Translation difference –7.2 –0.4 –3.0 – –– Closing accumulated depreciation –346.3 –155.5 –138.8 –0.4 –0.4 –0.4 Closing residual value according to plan 668.8 352.2 368.9 3.9 3.0 3.0

Machinery and other technical equipment Opening acquisition value 409.8 343.9 360.7 ––– Purchases 33.7 72.1 29.6 – –– In new companies on acquisition 216.8 2.3 16.8 – –– Disposals/scrapping –7.6 –12.2 –70.0 – –– Reclassification –7.4 ––– –– Translation difference 17.9 3.7 6.8 – –– Closing accumulated acquisition values 663.2 409.8 343.9 – –– Opening depreciation –237.6 –208.2 –212.7 – –– In new companies on acquisition –154.3 ––12.3 – –– Disposals/scrapping 5.2 9.9 50.3 – –– Depreciation for the year –37.8 –36.3 –28.7 – –– Reclassification 3.6 ––– –– Translation difference –12.1 –3.0 –4.8 – –– Closing accumulated depreciation –433.0 –237.6 –208.2 – –– Closing residual value according to plan 230.2 172.2 135.7 – ––

41 Notes

NOTE 2 Acquisition values of fixed assets, etc. cont. The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Equipment, tools and installations Opening acquisition value 383.2 326.5 289.7 0.6 0.5 0.7 Purchases 58.4 109.5 97.0 0.8 0.1 0.1 In new companies on acquisition 329.1 0.4 52.9 – –– Reclassification 6.2 ––– –– Disposals/scrapping –28.0 –51.5 –124.5 – ––0.3 Translation difference 23.2 –1.7 11.4 – –– Closing accumulated acquisition values 772.1 383.2 326.5 1.4 0.6 0.5 Opening depreciation –222.2 –194.9 –189.6 –0.4 –0.1 –0.3 In new companies on acquisition –234.4 –0.3 –30.4 – –– Disposals/scrapping 24.3 18.7 88.8 – – 0.3 Reclassification –3.4 ––– –– Depreciation for the year –51.5 –48.0 –56.3 –0.2 –0.2 –0.1 Translation difference –10.6 2.3 –7.3 – –– Closing accumulated depreciation –497.8 –222.2 –194.8 –0.6 –0.3 –0.1 Closing residual value according to plan 274.3 161.0 131.7 0.8 0.3 0.4

Rental equipment Opening acquisition value 172.3 107.0 – – –– Purchases 21.6 56.5 5.9 – –– In new companies on acquisition 14.6 – 105.1 – –– Reclassification, disposals/scrapping –15.3 3.5 –7.3 – –– Translation difference 16.6 5.3 3.3 – –– Closing accumulated acquisition values 209.8 172.3 107.0 – –– Opening depreciation –131.0 –74,8 – – –– In new companies on acquisition –11.7 –26.0 –66.8 – –– Reclassification, disposals/scrapping 14.7 –1.2 4.5 – –– Depreciation for the year –20.7 –24.9 –10.3 – –– Translation difference –12.8 –4.1 –2.2 – –– Closing accumulated depreciation –161.5 –131.0 –74.8 – –– Closing residual value according to plan 48.3 41.3 32.2 – ––

New work in progress Opening acquisition value 14.3 1.3 0.7 – –– Purchases 2.6 14.1 2.0 – –– In new companies on acquisition 2.3 ––– –– Reclassification –15.8 –1,1 –1.4 – –– Translation difference 0.1 ––– –– Closing accumulated acquisition values 3.5 14.3 1.3 – ––

Advances pertaining to tangible fixed assets. Opening acquisition value 7.3 14.3 3.6 – –– Purchases – – 10.7 – –– In new companies on acquisition 2.1 ––– –– Reclassification –6.5 –7.0 – – –– Translation difference 0.1 ––– –– Closing accumulated acquisition values 3.0 7.3 14.3 – ––

The total tax assessment value of the Group’s properties in Sweden was SEK 76.4 million (65.4 m, 65.7 m), of which SEK 9.2 million (5.8 m, 6.0 m) is for land.

Specification of depreciation for the year Buildings and land –19.3 –18.3 –11.4 – –– Machinery and other technical installations –37.8 –36.3 –28.7 – –– Equipment, tools and installations –51.5 –48.0 –56.3 –0.2 –0.2 –0.1 Rental equipment –20.7 –24.9 –10.3 – –– Total depreciation, tangible fixed assets –129.3 –127.5 –106.7 –0.2 –0.2 –0.1 Intangible assets (goodwill) –65.8 –60.7 –43.0 – –– Total depreciation, fixed assets –195.1 –188.2 –149.7 –0.2 –0.2 –0.1

Depreciation is included in the operating profit’s sub-items.

42 Notes

NOTE 3 Interest The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Interest income from subsidiaries – ––107.6 83.3 82.0 Other interest income 18.7 25.9 23.4 3.5 4.0 5.8 Interest expenses, subsidiaries – –––16.6 –17.3 –31.8 Other interest expenses –108.3 –77.6 –86.1 –106.1 –77.2 –75.6 Total interest –89.6 –51.7 –62.7 –11.6 –7.2 –19.6

NOTE 4 Other financial items The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Dividend from subsidiaries – ––192.6 189.7 104.0 Group contribution from subsidiaries – ––38.0 7.0 59.5 Profit on internal sales of shares – ––– – 160.7 Currency gain/loss 2.1 4.1 2.8 –14.9 32.1 –21.1 Write-offs of shares in subsidiaries – –––3.2 –– Other –8.5 –7.4 –5.1 –4.4 –2.8 –1.2 Total, other financial items –6.4 –3.3 –2.3 208.1 226.0 301.9

The parent company has raised loans or entered into futures contracts in foreign currencies as a balance against the net assets in subsidiaries. During 2000 SEK -21.9 million (+22.3 m, -25.3 m) of the exchange rate differences on these loans/futures has been carried directly to shareholders’ equity in the Consolidated Accounts.

NOTE 5 Appropriations Koncernen Parent Company SEK million 2000 1999 1998 2000 1999 1998 Changes in depreciation in excess of plan – 0.1 –0.1 Dissolution of tax allocation reserves 17.4 – – Total 17.4 0.1 –0.1

NOTE 6 Taxes The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Tax cost Actual tax cost –120.8 –100.3 –111.0 –1.4 –0.7 – Deferred tax –35.1 –58.2 –14.9 – ––45.1 Total tax cost –155.9 –158.5 –125.9 –1.4 –0.7 –45.1 Tax recoverables/liabilities Current tax recoverables 2.3 ––– –– Current tax liabilities – –75.9 –52.4 –0.4 –1.0 –0.6 Deferred tax recoverables, net 327.4 48.4 63.5 – –– Deferred tax liabilities – –––45.1 –45.1 –45.1 Total net tax recoverables/liabilities 329.7 –27.5 11.1 –45.5 –46.1 –45.7

Full provision for tax has been made, which also covers ongoing disputes with the tax authorities. Fiscal deficits in separate countries which, when utilized in full, correspond to an asset value of approximately SEK 236 million (130 m; 59 m), are not included in the balance sheet, whilst SEK 493.1 million (170.8 m; 140.6 m) has been taken into the Balance Sheet. Unlike the Group accounts, the parent company’s accounts have not taken deferred tax on untaxed reserves into consideration. The deferred tax liability on untaxed reserves in the parent company amounts to SEK 0.0 (4.9 m; 4.9 m); the deferred tax cost for the year was SEK 4.9 million (0.0; 0.0). Deferred tax on transitional reserves that relates to the parent company’s profit in 1998 from inter Group share transfers of SEK 45.1 million has been charged to the parent company equity but has been cancelled in the Group’s figures.

43 Notes

NOTE 7 Shares in subsidiaries Registered Swedish company Number of Book value Book value Book value Parent company’s holding office reg. no.shares SEK m 2000 SEK m 1999 SEK m 1998 Arjo AB Eslöv 556473-1700 23,062,334 2,008.6 2,008.6 2,008.6 Axima Instrument AB Solna 556058-7809 2,500 0.3 3.5 3.51) Getinge AB Halmstad 556031-2687 50,000 452.2 452.2 452.2 Getinge Aeroplane AB Halmstad 556535-6317 100 0.1 0.1 0.1 Getinge Airship AB Halmstad 556535-6309 100 0.1 0.1 0.1 Getinge Disinfection AB Halmstad 556042-3393 25,000 117.7 117.7 117.7 Getinge Letting AB Göteborg 556495-6976 1,000 0.1 0.1 0.1 Getinge Skärhamn AB Tjörn 556412-3569 1,000 5.7 5.7 3.4 LIC Audio AB Solna 556058-7460 1,000 5.6 5.6 5.6 Getinge Australia Pty Ltd Australia 39,500 8.6 8.6 8.6 Getinge D.S.E. NV Belgium 600 1.5 1.5 1.5 Getinge/Arjo A/S Denmark 525 3.3 1.5 1.52) OY Getinge AB Finland 15 0 00 Getinge/Arjo France SA France 150,250 216.3 216.3 216.3 Getinge & Castle International Ltd Greece 100 0.4 0.2 –3) Getinge Scientific KK Japan 10,000 0.6 0.6 0.6 Getinge Sterilizing Equipment Inc Canada 1,230,100 1.3 1.3 1.3 Getinge Industries Zhuhai (Ltd) China 1,000 1.1 1.1 1.1 Getinge/Arjo A/S Norway 4,500 5.0 5.0 5.0 Getinge Poland Sp Zoo Poland 500 12.7 12.7 12.7 Getinge Reinsurance AG Switzerland 2,000 12.7 12.7 12.7 NeuroMédica SA Spain 40,000 15.6 15.6 15.6 Getinge South Africa (Pty) Ltd South Africa 500 7.9 7.9 7.9 Getinge-Arjo Holding GmbH 4) Austria 500 0.4 0.4 0.4 Getinge Industrier GmbH Austria – – – 0.3 Total book value 2,877.8 2,879.0 2,876.8

The parent company’s holding of shares in the subsidiaries constitutes the entire capital and voting rights of the respective company. 1) The write-offs of the booked value of Axima Instrument AB shares have been made to the shares mathematical value after received dividend. 2) Capital in Getinge/Arjo A/S, Denmark has been increased through a new share issue of SEK 1.8 million. 3) Shareholders’ contribution of SEK 0.2 million has been given to Getinge Castle International Ltd. 4) The company name has been changed from Arjo Holding Österreich GmbH.

Subsidiaries of sub-groups: The Getinge Industrier Group, with its business in many countries, is organized into sub-groups in several categories, and the legal structure cannot therefore be reflected in a tabular presentation. The following is a list of the companies, which were a part of Getinge Industrier’s sub-groups as of 31 December 2000. The ownership interest is 100% except in certain cases. The Group’s voting rights and share of the capital is 76% in Lequeux Algérie. The outstanding minority interest in Lequeux Algérie is, from the point of view of the Group, very small, and amounts to SEK 0.1 million. Minority shareholdings of 5% and 20% exist in Getinge Kemiterm A/S and Medibol Beheer BV, respectively, which, due to the basis of the existing agreement, have been taken up in the consolidated accounts as Group associates, by having their future redemption prices entered as liabilities. The Maquet Group, which was acquired on 31 December 2000, includes a 67% ownership in Hansen-Maquet KK of Japan.

Sweden: Algeria Getinge Production France SAS Italy Switzerland Arjo Finance Sweden AB, Lequeux Algérie Lancer SNC Arjo Italia Spa Arjo AG Switzerland 556473-1718 Eslöv Australia Lequeux SA Omasa Getinge S.p.A. UK Arjo Holding AB, 556402-6663 Eslöv Arjo Hosp Equipm Pty Ltd Australia Peristel SA THE S.p.A. Arjo Ltd UK Arjo Hospital Equipment AB, Austria Stérilisation Médical International SA Japan Buchanan Leasing Ltd 556090-4095 Eslöv Arjo GmbH Stirn SA Arjo Japan KK Getinge Disinfection Ltd Arjo International AB, Getinge Industrier GmbH Germany Hansen-Maquet KK Getinge Industrier Holding UK Ltd 556528-1440 Eslöv Getinge Medizin-Geräte Service Arjo Holding Deutschland GmbH Luxembourg James Industries Ltd UK Arjo Sverige AB, 556528-4600 Eslöv GmbH Arjo Systeme GmbH Arjo International Sàrl Parker Bath Ltd Fjärrbilar Lastbils AB, Belgium Arjo-ZK Hospital GmbH Getinge Finance Sàrl Pegasus Ltd 556496-6728 Göteborg Arjo Hospital Equipment NV SA Getinge Maquet Germany Holding GmbH Getinge Luxembourg Sàrl Rowan Leasing Ltd Getinge Development AB, Medibo NV Getinge Maquet Verwaltungs GmbH Netherlands The Sterilizing Equipment Co Ltd 556004-5444 Halmstad Medibol Holding NV Getinge Medizin-Geräte Service GmbH Arjo Nederland BV US Getinge Fleet AB i likv, Stierlen-Maquet SA Getinge Produktions GmbH Getinge/Arjo Holding Netherlands BV Arjo Inc USA 556467-9560 Halmstad Brazil Getinge Van Dijk Medizintechnik GmbH Getinge Holding BV Arjo Manufacturing Co Getinge Hospital AB, Getinge Brasil Ltda Lancer Industrie GmbH Getinge Nederland BV Arjo USA Inc. 556547-8780 Halmstad Canada Maquet AG Lancer Holland B.V. Getinge Disinfection Inc Getinge Scientific AB, Arjo Canada Inc MediKomp GmbH Linden Holding BV Getinge/Castle, Inc 556547-8798 Halmstad Gestion Techno-Médic Inc Meditechnik GmbH Medibol Beheer BV Grand Traverse Technologies Inc Getinge Sverige AB, Getinge/Castle Canada Ltd ortoMaquet GmbH & Co KG Medibol Medical Products BV Lancer USA Inc 556509-9511 Halmstad Czech Republic ortoMaquet GmbH Gesch.führungsges. Royal Linden BV Maquet Corp Ronny Olofssons Service AB i likv, Arjo Hospital Equipment sro Hong Kong Poland Pegasus Airwave Inc 556376-9495 Östersund Denmark Arjo Ltd Hong Kong Arjo Poland Sp.z.o.o. Getinge-Kemiterm A/S Getinge/Castle Asia Ltd Spain France Ireland Arjo Spain S.A. Arjo Equipm Hosp SA Lenken Healthcare Ireland Ltd Leqeuex Española SL Filance SA

44 Notes

NOTE 8 Shares in associated companies SEK million Capital and voting rights 2000 1999 1998 Lunatronic Aps 25% 3.2 3.7 – Steritec GmbH, Germany – – – 4.2 3.2 3.7 4.2

Shares in Lunatronic ApS were acquired in September 1999 with the option that within four years to acquire the outstanding 75%. Write-offs have been made in 2000 of SEK 0.5 million. Steritec shares were sold in 1999.

NOTE 9 Stock-in-trade The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Raw materials 578.9 335.2 306.0 – –– Work in progress 196.2 74.2 79.2 – –– Finished products 493.6 355.9 385.5 – –– Total 1,268.7 765.3 770.7 – ––

NOTE 10 Current receivables The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Receivables from subsidiaries – ––3,652.2 2,094.4 2,353.2 Accounts receivable 1,999.6 1,344.5 1,322.7 – –– Tax recoverable 2.3 ––– –– Pre-paid expenses and accrued income: – Profit recognized on customer orders 121,0 105.3 148.6 – –– – Accrued interest income 0.5 0.2 11.5 0.1 0.1 11.3 – Short-term part of SPP funds 8.8 ––0.7 –– – Other pre-paid expenses and accrued income 204.0 93.2 83.1 25.6 2.5 1.4 Other current receivables 117.5 79.7 98.0 4.2 – 0.2 Total current receivables 2,453.7 1,622.9 1,663.9 3,682.8 2,097.0 2,366.1

NOTE 11 Unutilized overdraft facilities and credit facilities The granted, unutilized overdraft for the Group was SEK 14.7 million (4.5 m; 0). In addition to this, on 31 December 2000, there were outstanding short-term credit facilities of SEK 484.0 million (1,114.5 m; 0) and commited, unused facilities for long-term credits of USD 103.5 million, or SEK 987.1 million (1,705.0 m; 0) at the closing rate of exchange.

NOTE 12 The Group’s shareholders’ equity 2000 1999 1998 Share Restricted Unrestrict. Share Restricted Unrestrict. Share Restricted Unrestrict. SEK Million capital reserves reserves Total capital reserves reserves Total capital reserves reserves Total Opening balance 1/1/00 90.8 648.1 821.9 1,560.8 90.8 785.4 344.8 1,221.0 90.8 559.5 722.5 1,372.8 Dividend –159.0 –159.0 –147.6 –147.6 –635.4 –635.4 Net profit for the year 467.8 467.8 477.7 477.7 476.7 476.7 Final settlement, Arjo shares –––0.5 –0.5 Transfers 186.7 –186.7 – –137.3 137.3 – 225.9 –225.9 – Translation difference 61.4 61.4 9.7 9.7 7..4 7.4 Closing balance, 31/12/00 90.8 834.8 1,005.4 1,931.0 90.8 648.1 821.9 1,560.8 90.8 785.4 344.8 1,221.0 The wholly-owned subsidiary Arjo AB 556473-1700 has been consolidated since 1995 according to the pooling method.

NOTE 13 Parent company’s shareholders’ equity 2000 1999 1998 Share Restricted Unrestrict. Share Restricted Unrestrict. Share Restricted Unrestrict. SEK Million capital reserves reserves Total capital reserves reserves Total capital reserves reserves Total Opening balance, 1/1/00 90.8 2,044.7 335.3 2,470.8 90.8 2,044.7 285.7 2,421.2 90.8 2.044.7 738.6 2,874.1 Dividend –159.0 –159.0 –147.6 –147.6 –661.1 –661.1 Net profit for the year 188.2 188.2 197.2 197.2 208.2 208.2 Closing balance 31/12/00 90.8 2,044.7 364.5 2,500.0 90.8 2,044.7 335.3 2,470.8 90.8 2.044.7 285.7 2,421.2

The nominal value of each share is SEK 2.00. The share capital breaks down into 3,037,986 class A shares with 10 voting rights each, and 42,383,646 class B shares with one voting right each, to make a total of 45,421,632 shares.

NOTE 14 The Group’s interest-bearing debt SEK million 2000 Change 1999 Change 1998 Change Current interest-bearing debt to credit institutions 2,919.0 1,287.5 1,631.5 –209.5 1,841.0 655.4 Long-term debts to credit institutions 14.5 –1.0 15.5 –34.7 50.2 19.2 Allocated to pensions 1,121.7 1,095.0 26.7 –1.1 27.8 1.1 Less liquid funds –235.4 –76.6 –158.8 37.8 –196.6 –29.2 Interest-bearing debt, net 3,819.8 2,304.9 1,514.9 –207.5 1,722.4 646.5

Of the long-term debt, SEK 1.4 million (2.0 m; 2.1 m) is due for payment in five years or later.

45 Notes

NOTE 15 Restructuring reserves SEK million 2000 1999 1998 Opening balance, 01/01/00 54.5 154.3 90.4 Allocated for acquisition of companies 555.2 20.1 181.3 In connection with corporate acquisitions –55.0 –118.8 –87.7 In connection with 1997’s rationalization programme – ––27.3 Other – ––6.9 Exchange rate difference 3.4 –1.1 4.5 Closing balance, 31/12/00 558.1 54.5 154.3

NOTE 16 Current interest-bearing loans The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Debts to credit institutions 2,919.0 1,631.5 1,841.0 2,934.6 1,607.5 1,735.1 Debts to subsidiaries –––1,045.3 876.5 1,072.5 Total 2,919.0 1,631.5 1,841.0 3,979.9 2,484.0 2,807.6

NOTE 17 Other current liabilities The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Accounts payable 408.2 375.4 348.7 25.9 2.4 1.2 Tax liability – 75.9 52.4 0.4 1.0 0.6 Accrued costs and pre-paid income: – Salaries 96.8 81.3 72.7 2.3 2.2 1.8 – Payroll overheads 50.2 36.2 38.8 1.2 1.2 1.2 – Commission 21.7 21.7 27.7 – –– – Remaining costs from profit recognised customer orders 14.1 6.7 16.7 – –– – Interest expenses 18.1 5.7 5.7 17.7 5.4 5.3 – Other accrued costs and pre-paid income 265.0 212.1 271.3 11.4 1.7 19.9 Advances from customers 124.8 66.8 90.5 – __ Other current debts 178.1 128.5 121.5 0.3 1.7 0.6 Total, current liabilities 1,177.0 1,010.3 1,046.0 59.2 15.6 30.6

NOTE 18 Contingent liabilities and pledged assets SEK million The Group Parent Company Contingent liabilities 2000 1999 1998 2000 1999 1998 Property mortgages 9.1 ––– –– Blocked bank assets – – 0.6 – –– Assets burdened with retention of title 18.0 17.7 21.1 – –– Total 27.1 17.7 21.7 – –– Pledged assets Guarantees and other contingent liabilities 140.4 83.9 172.0 92.2 116.6 153.0 Total 140.4 83.9 172.0 92.2 116.6 153.0

A property mortgage of SEK 9.1 million during 2000 was placed as security against a short-term bank loan for Maquet, before the acquisition by Getinge. Those assets burdened with retention of title earn revenue as security for interest-bearing liabilities to credit institutions. In 1998 various bank funds were blocked as security for possible commitments.

NOTE 19 Leasing Financial leasing, SEK million Paid 2000 Due 2001 2002 2003 2004 2005 2006 Long-term, interest-bearing liability 5.1 2.3 2.1 2.0 – Current, interest-bearing liability 6.2 6.0 Total financial leasing 6.2 6.0 5.1 2.3 2.1 2.0 – Undertakings for operational leasing 44.0 42.1 31.5 17.1 12.1 10.6 23.4

Buildings Machinery Equipment Fixed assets owned through financial leasing and land and plant and tools Acquisition value 23.5 1.9 7.6 Accumulated depreciation –9.3 –1.3 –4.4 Book value, net 14.2 0.6 3.2

46 Notes

NOTE 20 Average number of employees The Group 2000 1999 1998 Male Female Total Male Female Total Male Female Total Australia 62 11 73 59 9 68 59 7 66 Austria 14 1 15 17 2 19 17 2 19 Belgium 20 3 23 33 4 37 22 3 25 Canada 30 14 44 28 8 36 27 9 36 China 91109 110516 Czech Republic 7297 2 9729 Denmark 56 10 66 45 7 52 25 4 29 Finland 6396 3 9617 France 358 68 426 343 64 407 320 68 388 Germany 147 54 201 163 53 216 158 45 203 Greece 2132 1 3314 Holland 100 41 141 100 34 134 106 31 137 Hongkong 64106 4106410 Ireland 19 10 29 – – –––– Italien 62 20 82 73 19 92 32 12 44 Japan 2 – 2 2 – 22 2 Luxemburg 426– – –––– Norway 16 3 19 14 3 17 14 3 17 Poland 13 4 17 12 3 15 10 3 13 South Africa 42 6 48 32 6 38 49 7 56 Spain 9132210 10 20 9 7 16 Sweden 710 117 827 697 110 807 680 111 791 Switzerland 12 4 16 12 5 17 14 4 18 UK 481 147 628 484 140 624 322 65 387 US 928 257 1.185 911 263 1.174 824 169 993 Total 3,115 796 3,911 3,065 751 3,816 2,717 559 3,276

The Parent company 2000 1999 1998 Male Female Total Male Female Total Male Female Total Sweden 6285 2 7628

Note 21 Staff costs SEK million Manage- 2000 Manage- 1999 Manage- 1998 The Group ment Other Total ment Other Total ment Other Total Salaries and remuneration 60.9 1,356.8 1,417.8 58.9 1,243.3 1,302.2 52.8 989.9 1,042.7 Social security costs 9.9 269.7 279.5 9.1 254.8 263.9 7.5 212.2 219.7 Pension costs 5.5 53.7 59.2 4.8 53.3 58.1 4.8 51.3 56.1 Total 76.3 1,680.2 1,756.5 72.8 1,551.4 1,624.2 65.1 1,253.4 1,318.5

Salaries and remuneration per country 2000 1999 1998 SEK million Manage- of which Manage- of which Manage- of which The Group ment bonus Other Total ment bonus Other Total ment bonus Other Total Australia 0.9 0.1 15.0 15.9 1.4 0.1 13.7 15.1 1.3 0.2 11.4 12.7 Austria ––5.8 5.8 ––5.7 5.7 0.7 – 5.9 6.6 Belgium 1.5 0.1 6.8 8.3 1.9 0.2 9.1 11.0 1.5 0.1 3.3 4.8 Canada 2.1 0.5 19.6 21.7 1.3 0.3 14.4 15.7 1.3 0.3 7.0 8.3 China ––1.2 1.2 ––1.1 1.1 ––0.5 0.5 Czech Republic 0.4 0.1 0.6 1.0 0.3 0.1 0.5 0.8 0.3 0.1 0.5 0.8 Denmark 1.8 0.1 24.5 26.3 1.7 0.1 17.9 19.6 1.3 0.1 10.8 12.1 Finland 0.7 0.1 2.0 2.7 0.8 0.1 1.9 2.7 0.6 – 1.6 2.2 France 4.7 1.3 100.8 105.5 4.8 1.3 93.6 98.4 4.4 1.3 83.5 87.9 Greece 0.1 – 0.7 0.8 ––0.8 0.8 ––1.0 1.0 Germany 8.1 1.4 71.8 79.9 10.3 2.2 82.8 93.1 8.7 1.8 71.0 79.7 Holland 3.1 0.5 42.1 45.2 3.0 0.8 39.8 42.8 3.0 0.5 38.0 41.0 Hongkong 2.0 0.4 3.3 5.3 1.8 0.3 2.5 4.3 1.9 0.2 2.9 4.8 Ireland 0.5 0.1 6.1 6.6 –––––––– Italy 2.2 0.6 23.6 25.8 2.6 0.9 25.5 28.1 2.4 1.0 11.8 14.2 Japan ––1.0 1.0 ––1.2 1.2 ––1.8 1.8 Luxemburg 2.8 1.3 4.2 7.0 –––––––– Norway 1.1 0.1 7.2 8.3 0.7 – 6.5 7.2 0.6 – 5.8 6.4 Poland 0.5 – 2.5 3.0 0.4 – 2.1 2.5 0.3 – 1.8 2.1 South Africa 0.3 – 3.5 3.8 0.3 – 4.5 4.8 0.3 – 5.0 5.3 Spain 1.6 – 4.2 5.8 1.6 0.3 3.5 5.1 1.5 0.3 3.8 5.3 Sweden 10.9 1.7 216.2 227.1 9.7 2.5 211.9 221.6 7.4 1.2 204.4 211.8 Switzerland ––8.1 8.1 ––9.5 9.5 1.3 0.2 8.4 9.7 UK 10.7 2.1 217.4 228.1 11.3 1.9 194.3 205.6 6.5 1.9 110.3 116.8 US 4.9 0.5 568.6 573.5 5.0 1.2 500.5 505.5 7.5 2.0 399.4 406.9 Total 60.9 11.0 1,356.8 1,417.7 58.9 12.3 1,243.3 1,302.2 52.8 11.2 989.9 1,042.7

47 Notes

Note 21 Staff costs cont. SEK million 2000 1999 1998 The Parent company Management Other Total Management Other Total Management Other Total Salaries and remuneration 3.0 4.5 7.5 3.5 3.8 7.3 3.5 3.4 6.9 Social security costs 1.3 2.1 3.4 1.2 1.6 2.8 1.2 1.1 2.3 Pension costs 0.3 1.1 1.4 0.3 1.3 1.6 0.2 1.8 2.0 Total 4.6 7.7 12.3 5.0 6.7 11.7 4.9 6.3 11.2

A director’s fee, totalling SEK 350,000 (250,000; 250,000) has been paid to the In January 2000, the US subsidiary introduced an synthetic options scheme for its Chairman of the Board. Salary, remuneration and benefits totalling SEK 3,666,000 executive management. The scheme covers around 20 executives and totals (3,770,000; 3,499,000) have been paid to the President & CEO. In addition, the 310,000 options. The scheme runs from 25 January 2000 to 25 January 2005. The company has taken out a pension plan for the President & CEO for a maximum options’ exercise price will be calculated as the difference between the initial value tax-deductible premium to come into force at the age of 65. Upon termination of of SEK 97.55 and the rate in force on the day of redemption. The options holder employment by the company, the President & CEO is entitled to salary during a has the right to redeem a fifth of the issued options for each full year of employ- period of notice corresponding to one year. Fees amounting to a total of SEK ment. The Getinge Group has drawn up an insurance contract that fully covers any 875,000 (500,000; 406,000) have been paid to other directors. possible price surge (but not a fall below 97.55) during the options’ duration. Salaries and car allowance have been paid to other persons at Group manage- The holders of these options in February 2001 were as follows: ment level. Housing benefit has also been paid to some persons on the Group management team. The usual pension undertakings within the framework of the Country No. of options general pension scheme also exist. Upon termination of employment by the com- Creighton White, member of pany, the person given notice has the right to salary during a period of notice of at Getinge’s Group management US 60,000 least 6 months and at most one year. Executive management In March 1998, the company's major shareholder issued a number of share options in Getinge Industrier AB to the Group management and staff in manage- of American subsidiaries US 250,000 ment positions at the Group. For each option with an expiry date of March 2003 Total 310,000 and an exercise price of SEK 200.50 (after disposal of Lifco), the purchaser has paid the sum of SEK 14.00 to the seller. The holders of these options in February 2001 were as follows: Note 22 Auditors SEK million Group management Country No. of options Arthur Andersen is the The Group Parent Company Harald Castler Sweden 30,000 Company’s auditor 2000 1999 2000 1999 Ulf Grunander Sweden 30,000 Fees and remuneration Christophe Hammer France 30,000 Auditing assignments 4.4 4.7 0.5 0.4 Micael Hedlund Sweden 30,000 Other assignments 8.0 15.3 0.5 2.1 Albrecht Knauf Germany 30,000 Johan Malmquist Sweden 60,000 Auditing assignments refer to auditing carried out in accordance with Previous members of Group management Sweden 90,000 Generally Accepted Accounting Principles in Sweden (see Auditors’ 32 people in management positions Report, page 49). All other work comes under other assignments. in the subsidiaries 152,100 Total 452,100

Note 23 Items affecting comparability The Group Parent Company SEK million 2000 1999 1998 2000 1999 1998 Operating profit in operations sold (Lifco) – – 15.9 – –– Surplus funds from SPP 23.2 ––– –– Total 23.2 – 15.9 – ––

Note 24 Classification change Due to a classification change of certain costs, minor transfers in the comparative figures for 1999 have been made from operating costs to costs for goods sold.

Note 25 Additional information to the financial analysis

1. Acquisition/sale of subsidiaries The value of assets and liabilities in acquired companies was, in accordance with the acquisition analysis, as follows (figures for 1998 include deduction for sale of Lifco): SEK million 2000 1999 1998 Goodwill 1,415.6 32.3 140.3 Other fixed assets 735.5 6.0 95.3 Stock-in-trade 397.0 2.3 –100.0 Receivables 567.1 0.6 67.8 Liquid funds 64.7 0.1 0.3 Minority interests –8.8 – – Interest-bearing liabilities –1,353.8 –0.3 –91.1 Non interest-bearing liabilities –991.8 –5.8 –246.3 Paid purchase price 825.4 35.2 –133.7 Net debt in acquired companies 1,289.2 0.2 90.8 Effect on Group net debt 2,114.5 35.4 –42.9

2. Paid interest and taxes; financial leasing; SPP Paid income interest amounted to SEK 18.4 million (37.2 m; 19.2 m); paid outgoing interest amount- ed to SEK 95.9 million (77.6 m; 82.4 m); acquisition of assets through financial leasing agreements amounted to SEK 2.0 million (0;0); paid taxes amounted to SEK 126.5 million (80.7 m; 104.0 m). Non-cash-affecting funds from SPP amounting to SEK 24 million are reported in the flow from current activities.

48 Audit report

To the general meeting of the shareholders of Getinge Industrier AB (publ) Corporate identity number 556408-5032

e have audited the annual accounts, the consolidated The annual accounts and the consolidated accounts have been accounts, the accounting records and the administra- prepared in accordance with the Annual Accounts Act and, there- Wtion of the board of directors and the managing direc- by, give a true and fair view of the company’s and the group’s tor of Getinge Industrier AB for the year 2000. These accounts financial position and results of operations in accordance with and the administration of the company are the responsibility of generally accepted accounting principles in Sweden. the board of directors and the managing director. Our responsibil- We recommend to the general meeting of shareholders that the ity is to express an opinion on the annual accounts, the consolida- income statements and balance sheets of the parent company and ted accounts and the administration based on our audit. the group be adopted, that the profit of the parent company be dealt We conducted our audit in accordance with generally accepted with in accordance with the proposal in the administration report auditing standards in Sweden. Those standards require that we and that the members of the board of directors and the managing plan and perform the audit to obtain reasonable assurance that the director be discharged from liability for the financial year. annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evi- dence supporting the amounts and disclosures in the accounts. An Getinge, 8 March 2001 audit also includes assessing the accounting principles used and their application by the board of directors and the managing director, as well as evaluating the overall presentation of informa- tion in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we Mats Fredricson Jan Nilsson examined significant decisions, actions taken and circumstances Authorised Public Accountant Authorised Public Accountant of the company in order to be able to determine the liability, if Arthur Andersen AB any, to the company of any board member or the managing direc- tor. We also examined whether any board member or the manag- ing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.

49 Directors, Group Management and Auditors

DIRECTORS

Carl Bennet Fredrik Arp Bo Damberg Anders Frick

Kerstin Paulsson Mats Wahlström Johan Malmquist Bent Carlsen Leif Holmgren

AUDITORS

Gert Klarén Anders Rendell Mats Fredricson Jan Nilsson

GROUP MANAGEMENT

Johan Malmquist Heribert Ballhaus Harald Castler Ulf Grunander

Christophe Hammer Micael Hedlund Albrecht Knauf Michael Rieder Creighton White

50 Directors, Group Management and Auditors

THE BOARD Johan Malmquist, born 1961. Heribert Ballhaus, born 1952. Carl Bennet, born 1951. President and CEO. Vice President of Surgical Systems Chairman of the Board since 1997. Employed since 1990. business area and President of Maquet. Chairman of Elanders AB, Halmstad Holds 5,000 class B shares and 60,000 Employed since 2001. University, Lifco AB, Scanrec AB and options corresponding to 60,000 Holds 2,000 class B shares. Sorb Industri AB. class B shares. Member of the Board of AMS, SNS and Harald Castler, born 1957. Telia AB. APPOINTED BY THE EMPLOYEES Sales and Marketing Director Holds 3,037,986 class A and 3,372,800 Bent Carlsen, born 1948. of Infection Control business area. class B shares. Representative Member of the Board on Employed since 1988. behalf of the Swedish Metalworkers’ Union Holds 3,000 shares and options corres- Fredrik Arp, born 1953 since 2000. ponding to 30,000 class B shares. Member of the Board since 1998. Employed by Getinge AB. President and CEO of Trelleborg AB. Holds 100 class B shares. Ulf Grunander, born 1954. Member of the Board of Industriförbundet, Chief Financial Officer. Perstorp AB and Trelleborg AB. Leif Holmgren, born 1947. Employed since 1993. Holds 1,500 class B shares Deputy Representative Member on behalf of Holds 5,000 shares and options corres- the Swedish Metalworkers’ Union since ponding to 30,000 class B shares. Bo Damberg, born 1937 1989. Member of the Board since 1999. Employed by Getinge Disinfection AB. Christophe Hammer, born 1958. Director of Svenska Handelsbanken. Vice President of Disinfection product Chairman of the SHB Pension Foundation Gert Klarén, born 1944. line and President of Lancer S.A. and associated boards and the Åhlens Representative Member on behalf of the Employed since 1992. Foundation. Swedish Foremen's and Supervisors' Holds options corresponding to 30,000 Member of the Board of the Swedish Association, Ledarna, since 1989. class B shares. Securities Council, Atle Företagskapital Employed by Getinge AB. AB, Isaberg Rapid AB and the Sandrew Holds 300 class B shares. Micael Hedlund, born 1956. Foundation. Vice President of Extended Care product Holds 2,500 class B shares Anders Rendell, born 1965. lines and President of Arjo Hospital Deputy Representative Member on behalf Equipment AB. Anders Frick, born 1945. of the Swedish Union of Clerical and Employed since 2000. Member of the Board since 1997. Technical Employees in Industry, SIF, Holds options corresponding to 30,000 Former President of Arjo AB since 1999. class B shares. Member of the Board of AB Fagerhult, Employed by Getinge Disinfection AB. Nordbanken Södra Regionen, Securitas Holds 300 class B shares. Albrecht Knauf, born 1951. AB , Prostalund AB and Sweco AB. Sales and Marketing Director of Extended Holds 8,000 class B shares. AUDITORS Care business area and President of Arjo Mats Fredricson, born 1944. International s.a.r.l. Kerstin Paulsson, born 1963. Authorized Public Accountant. Employed since 1980. Member of the Board since 2000. Company’s auditor since 1989. Holds 3,000 shares and options correspon- President and partner of Netsoft Lund AB. ding to 30,000 class B shares. Member of the Board of the Foundation Jan Nilsson, born 1962. for Knowledge and competency develop- Authorized Public Accountant. Michael Rieder, born 1952. ment. Arthur Andersen AB Sales and Marketing Director of Company’s auditor since 2000. Surgical Systems business area. Mats Wahlström, born 1954. Employed since 2001. Member of the Board since 2000. GROUP MANAGEMENT Holds 750 class B shares Vice President of Securitas AB. Member Johan Malmquist, born 1961. of the Board of Healthgrade, Inc. and President and CEO. Creighton White, born 1957. Prostalund AB. Employed since 1990. President of Getinge Americas Group and Holds 5,000 class B shares. Holds 5,000 class B shares and options President of Getinge Castle Inc. corresponding to 60,000 class B shares. Employed since 1995. Holds synthetic options corresponding to 60,000 class B shares.

51 Addresses

AUSTRALIA Arjo Hospital Equipment Pty Limited 154 Lytton Road , Bulimba Qld 4171, Tel: +61-733 956 311, Fax: +61-733 956 712, President: Philip McLaughlin Getinge Australia Pty Ltd 154 Lytton Road, Bulimba Qld 4171, Tel: +61-733 993 311, Fax: +61-733 956 712, President: Philip McLaughlin AUSTRIA Arjo GmbH Föhrenweg 5, A-6065 Thaur, Tel: +43-522 349 3360, Fax: +43-522 349 3360-10, E-mail: [email protected], President: Albrecht Knauf Getinge Medizin-Geräte Service GmbH Föhrenweg 5, A-6065 Thaur, Tel: +43-522 349 3360, Fax: +43-522 349 3360-10, E-mail: [email protected], President: Albrecht Knauf BELGIUM Arjo Hospital Equipment NV SA Ternesselei 248, B-2160 Wommelgem, Tel: +32-3353 9100, Fax:+32-3353 9100, E-mail: [email protected], President: Frank Robeers Getinge D.S.E. NV Nijverheidsstraat 2, B-2160 Wommelgem, Tel: +32-335 428 65, Fax: +32-335 428 64, E-mail: [email protected], President: Dirk De Decker Medibol NV Heikant 5, 3930 Hamont-Achel, Tel: +32-118 020 40, Fax: +32-118 016 26, President: Jos Bollen BRAZIL Getinge Brasil Ltda Av. Dr Chucri Zaidan 920, 9 andar Morumbi, CEP-04583-904 Sao Paulo S.P, Tel: +55-113 048 4007, Fax: +55-113 048 4013, President: Luis Boaventura CANADA Arjo Canada Inc 1575 South Gateway Road, Unit C, Mississauga Ontario L4W 531, Tel: +1-905 238 7880, Fax: +1-905 238 7881, President: Ross Scavuzzo/John Thiessen Gestion Techno-Médic 6900 AV. Choquette, St. Hyacinthe/ Quebec G2S8L1, Tel: +1-450 774 7948, Fax: +1-450 774 2335, President: Ross Scavuzzo/Yvan Rodier Getinge/Castle Canada Ltd 1575 South Gateway Road, Unit C, Mississauga Ontario L4W 531, Tel: +1-905 629 8777, Fax: +1-905 629 8875, E:mail: [email protected], President: Robert Bothwell CHINA Getinge AB Beijing Office Rom 512, Jinru Business Bldg. A, No. 13, Fuwai Beiyingfang Dongli Xicheng District, Beijing 100037, China, Tel: +86-106 831 7523, 106 836 1243, Fax: +86-106 831 7543, E-mail: [email protected], President: Schilling Luo Getinge AB Guangzhou Office Rm 1808, 18/F, Guangzhou, Exchange Square, No 268, Dong Feng Zhong Road, Guangzhou 510030, China, Tel: +86-208 351 1875 / 83511065, Fax: +86-208 351 1066, E-mail: [email protected], President: Schilling Luo CZECH Arjo Hospital Equipment s.r.o. REPUBLIC Strmá 35, CZ-616 00 Brno, Tel: +42-575 4252, Fax: +42-541 213 550, E-mail: [email protected], President: Milan Sovadina DENMARK Getinge Kemiterm A/S Industrivej 6, DK-3540 Lynge, Tel: +45-481 633 33, Fax: +45-481 891 04, E-mail: [email protected], President: Henrik Herman Getinge/Arjo A/S Firskovvej 23, DK-2800 Lyngby, Tel: +45-459 327 27, Fax: +45-459 341 20, President: Ole Mortensen FINLAND Getinge Finland AB Båtbyggarevägen18, FI-00210 Helsinki, Tel: +358-968 241 20, Fax: +358-968 241 222, E-mail: [email protected], President: Peter Axberg FRANCE ALM SA Parc de Limère, Avenue de la Pomme de Pin, Ardon, FR-45074 Orléans, Tel: +33-238 258 888, Fax: +33-238 258 800, President: D. Bedouré Arjo Equipements Hospitaliers SA 45, avenue de l«Europe, Eurocit, F-59435 Roncq Cedex, Tel: +33-320 281 313, Fax: +33-320 281 314, E-mail: [email protected], President: Frank Robeers Getinge Production France SA 17 Rue de la Gaudreé B.P 103, FR-91415 Dourdan, Tel: +33-160 818 400, Fax: +33-160 818 484, President: Alain Sayag Lancer SNC 30 Bd de l«Industrie, FR-31170 Tournefeuille, Tel: +33-561 151 111, Fax: +33-561 151 616, President: Christophe Hammer Lequeux SA 17 Rue de la Gaudreé B.P 103, FR-91415 Dourdan, Tel: +33-160 818 400, Fax: +33-160 818 484, President: Alain Sayag Peristel SA 33 bis Route de Chartres, FR-91400 Gometz La Ville, Tel: +33-1160 127 171, Fax: +33-160 125 347, President: Alain Sayag Sterilisation Médical International SA (S.M.I) 921, Rue de la Croix de Lavit, FR-34197 Montpellier Cedex 5, Tel: +33-467 917 200, Fax: +33-467 411 667, President: Alain Sayag Stirn SA 45, avenue de l«Europe, Eurocit, F-59435 Roncq Cedex, Tel: +33-320 281 313, Fax: +33-320 281 314, E-mail: [email protected], President: Alain Sayag GREECE Getinge & Castle International Ltd Areos 101,P.Falairo 1, GR-17562 Athens, Tel: +30-198 530 17, Fax: +30-198 896 97, President: Björn Wedeman GERMANY Arjo Systeme GmbH Rudolf-Diesel-Strasse 5, DE-65719 Hofheim, Tel: +49-612 280 40, Fax: +49-612 280 4160, President: Robert Deschler Arjo-ZK Hospital Bedarfs GmbH Schachtstrasse 17, DE-45739 Oer-Erkenschwick, Tel: +49-236 869 050, Fax: +49-612 280 4160, President: Robert Deschler Getinge Medizin-Geräte Service GmbH Schachtstrasse 17, DE-45739 Oer-Erkenschwick, Tel: +49-236 869 050, Fax: +49-236 869 0599, President: Robert Deschler Getinge Produktions GmbH Schachtstrasse 17, DE-45739 Oer-Erkenschwick, Tel: +49-236 869 050, Fax: +49-236 869 0599, President: Alfred Heider Getinge Van Dijk Medizintechnik GmbH Postfach 1125, DE-47628 Straelen, Tel: +49-283 491 330, Fax: +49-283 491 3366, President: H.Van Dijk Maquet A.G. Kehler Strasse 31, DE-76437 Rastatt, Tel: +49-722 293 20, Fax: +49-722 293 2855, E-mail: [email protected], President: H. Ballhaus Meditechnik GmbH, Bade- und Hilfssysteme Schmalheck 18, DE-35625 Hüttenberg/Rechtenbach, Tel: +49-644 197 81-0, Fax: +49-644 175 705 President: Dietmar Klas

52 Addresses

HONG KONG Arjo Far East Ltd 1001-03 APEC Plaza,49 Hoi Yuen Road, Kwun Tong Kowloon, Hong Kong, Tel: +852-250 895 53, Fax: +852-238 657 97, President: Samuel Wong Getinge/Castle Asia Ltd China Aerospace, Techn. Centre/Room 1104 11th Floor, 143 Hoi Bun Road, Kwun Tong Kowloon, Hong Kong, Tel: +852-257 280 32, Fax: +852-283 840 03, President: Dag Leff-Hallstein IRELAND Lenken Healthcare Ltd Kennedy House, Prince Regent Road, Belfast BT5 6QR, Tel: +44-6289 040 2000, Fax: +44-289 040 3848, President: Trevor Kennedy ITALY Arjo Italia SpA Via Poggio Verde, 34, IT-00148 Roma, Tel: +39-665 09401-2-3, Fax: +39-665 663 212, E-mail:[email protected], President: Silvio Dinale Getinge SpA Via Poggio Verde, 34, IT-00148 Roma, Tel: +39-665 6631, Fax: +39-665 663 203, E-mail: [email protected], President: Silvio Dinale THE Getinge Service SpA Via Poggio Verde, 34, IT-00148 Roma, Tel: +39-665 6631, Fax: +39-665 663 203, E-mail: [email protected], President: Silvio Dinale JAPAN Getinge Scientific K.K 1-16-15 Room 302 Toyama, Shinjuku-ku, Tokyo 162-0052, Tel: +81-352 923 081, Fax: +81-352 923 082, President: Masaru Kaneko LUXEMBURG Arjo International S.à.r.l. 11, route des trois Cantons, L-8399 Windhof, Tel: +352-263 0701, Fax: +352-263 070 60, President: Albrecht Knauf NETHER- Arjo Nederland BV LANDS De Blomboogerd 8, Postbus 6116, NL-4000 HC Tiel, Tel: +31-344 640 800, Fax: +31-344 640 885, President: Rob Burgers Lancer Holland BV Postbus 33, NL-6659 ZG Wamel, Tel: 31-487 518 088, Fax: +31-487 517 978, President: Karel Rietveld Medibol Médical Products BV Peperstraat 3-5, NL-554 EG Valkenswaal, Tel: +31-402 044 296, Fax: +31-402 019 183, E-mail: [email protected], President: Jos Bollen Getinge BV Fruiteniersstraat 27, Postbus 1004, NL-3330 CA Zwijndrecht, Tel: +31-786 102 433, Fax: +31-786 101 582 E-mail: [email protected], President: Ronald J.A. van Franck NORWAY Getinge/Arjo A/S Ole Deviks vei 4, NO-0666 Oslo, Tel: +47-230 511 80, Fax: +47-230 511 99, E-mail: [email protected], President: Arne Corneliussen POLAND Arjo Poland Sp. z.o.o. Ul. Walecznych 44, PL-03-916 Warszawa, Tel: +48-226 162 916, Fax: +48-226 177 601, President: Alexander Borowski Getinge Poland Sp. z.o.o. Ul. Walecznych 44, PL-03-916 Warszawa, Tel: +48-391 211 85, Fax: +48-226 163 071, President: Jerzy Bartos SOUTH Getinge South Africa (Pty)Ltd AFRICA P.O Box 48492 Hercules 0030, South Africa, Tel: +27-123 721 370, Fax: +27-123 721 282, E-mail: [email protected], President: Des Collins SPAIN Arjo Spain S.A Vallespir 13, Sant Joan Despi, ES-08970 Barcelona, Tel: +34-934 773 733, Fax: +34-934 773 732, E-mail: [email protected] President: Miguel Valdeolivas Lequeux Española S.A Avenida de Burgos 16 E, ES-28036 Madrid, Tel: +34-913 832 427, Fax: +34-913 832 393, President: Alain Sayag NeuroMédica SA Avenida de Burgos 16 E, ES-28036 Madrid, Tel: +34-917 663 922, Fax: +34-917 663 666, President: Åke Öhrström SWEDEN Arjo Hospital Equipment AB P O Box 61, SE 241 21 Eslöv, Tel: +46-413 645 00, Fax: +46-413 138 76, E-mail: [email protected], President: Micael Hedlund Arjo Scandinavia AB P O Box 61, SE 241 21 Eslöv, Tel: +46-413 645 00, Fax: +46-413 555 586, E-mail: [email protected], President: Jan Löfving Arjo Sverige AB P O Box 61, SE 241 21 Eslöv, Tel: +46-413 645 00, Fax: +46-413 645 83, E-mail: [email protected], President: Mikael Johansson Getinge AB P O Box 69, SE 310 44 Getinge, Tel: +46-35 15 55 00, Fax: +46-35 549 52, E-mail: [email protected], President: Johan Malmquist Getinge Disinfection AB P O Box 1505, SE 351 15 Växjö, Tel: +46-470 779 800, Fax: +46-470 208 32, E-mail: [email protected], President: Roland Karlsson Getinge Skärhamn AB Industrivägen 5, SE 471 31 Skärhamn, Tel: +46-304 600 200, Fax: +46-304 600 229, E-mail: [email protected], President: Gert Linder Getinge Sverige AB P O Box 69. SE 310 44 Getinge, Tel: +46-35 15 55 00, Fax: +46-35 54 49 52, E-mail: [email protected], President: Peter Olsson LIC Audio AB P O Box 603, SE 194 26 Upplands Väsby, Tel: +46-859 000 450, Fax: +46-859 000 490, E-mail: [email protected], President: Claes Lund SWITZERLAND Arjo Sic AG Wartenbergstrasse 15, Postfach, CH-4020 Basel, Tel: +41-613 119 784, Fax: +41-613 119 742, President: Albrecht Knauf UK Arjo Ltd UK St. Catherine Street, Gloucester GL 1 2SL, Tel: +44-145 242 8200, Fax: +44-145 242 8337, Gen. Mgr. Mark Harwood/Andy Gould Parker Bath Ltd Queensway, Stem Lane, New Milton,Hampshire BH255 NN, Tel: +44-142 562 4000, Fax: +44-142 256 219, President: Micael Hedlund Pegasus Egerton Ltd Pegasus House,Waterberry Drive, Waterlooville, Hampshire PO77XX, Tel: +44-170 578 4200, Fax: +44-170 057 842 50, Gen. Mgr. Angus Hannagan Sterilizing Equipment Co Ltd Orchard Way, Calladine Park, Sutton in Ashfield, Notts NG 17 1JU, Tel: +44-162 351 0033, Fax: +44-162 344 0456, President: Stephen Parrish US Arjo Inc 50 North Gary Avenue, Roselle, IL-60172, Tel: +1-630 307 2756, Fax: +1-630 307 6194, E-mail: [email protected], President: Ross Scavuzzo Getinge/Castle Inc 1777 East Henrietta Road, Rochester, NY-14623-3133, Tel: +1-716 475 1400, Fax: +1-716 272 5033, E-mail: [email protected], President: Creighton White Grand Traverse Technologies Inc 322 East Welch Court, Traverse City, MI-49686-4378, Tel: +1-231 941 2041, Fax: +1-231 941 2046, E-mail: [email protected], President: Micael Hedlund Lancer USA Inc 140 State Road 419, Winter Springs, FL-32708, Tel: +1-407 327 8488, Fax: +1-407 327 1229, E-mail: [email protected], President: Jim Fry Pegasus Airwave Inc 791 Park of Commerce Blvd, Suite 500, Boca Raton, FL-33487, Tel: +1-561 989 9898, Fax: +1-561 989 9640, E-mail: [email protected], President: Ross Scavuzzo GETINGE INDUSTRIER AB (publ.) P.O. Box 69, SE-310 44 Getinge Telephone +46-35-15 55 00 Telefax +46-35-549 52 [email protected]

www.getinge.com Graphic Design/Production: Malmer & Partners, Gbg, Sweden 2001.