Getinge AB Annual Report 2002
Annual General Meeting and reports for 2003 The Annual General Meeting will be held on Wednesday 23 April 2003 at 4 p.m. in Getingehallen Notification Shareholders wishing to participate at the Annual General Meeting should be registered in the shareholders' register kept by Värdepapperscentralen VPC AB, (the Swedish Central Securities Depository), no later than 11 April 2003, 2003, (the record date is 13 April 2003, but due to the intervening weekend the entry must have been made by 11 April 2003) and notify Getinge's head office at Getinge AB, Information Dept, Box 69 S-310 44 Getinge Tel: +46 35 15 55 00 of their intention to participate, no later than 16 April 2003. Shareholders whose shares are registered in the name of a nominee must have temporarily registered their shares in their own name with VPC , to be able to participate at the Annual General Meeting, well in advance of 11 April 2003. Shareholders wishing to be represented must send a relevant power of attorney to the company before the meeting. Those representatives representing legal entities must have a copy of the registration certificate or a corresponding authorization document that shows the proper authorized signatory. Dividend The Board of Directors and President propose that a dividend of SEK 4.25 (3.75 ) per share be paid, totalling SEK 214.5 million. The Board’s proposed record date is 28 April 2003. VPC anticipates being able to forward the dividend to shareholders on 2 May 2003.
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Reports for 2003 Getinge AB will be publishing the following reports in Swedish and English during the year: The report for Q1 2003 will be issued in conjunction with the Annual General Meeting on 23 April 2003 in Getinge. Interim report for the first six months of 2003: 14 July 2003 The report for Q3 2003: 16 October 2003 Release of the financial statements for 2003: January 2004 Annual Report for 2003: April 2004
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The reports can be ordered from: Getinge AB, Information Dept. Box 69, S-310 44 Getinge. Tel: +46 35 15 55 00 Information about this Annual Report The Getinge Group is referred to in this Annual Report as Getinge. Figures in brackets refer, unless otherwise specified, to 2001’s activities. Swedish krona is abbreviated (SEK) throughout this document. 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.
Contents
FOCUS AND STRATEGY
The year in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Five-year summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Group overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Comments by the CEO . . . . . . . . . . . . . . . . . . . . . . . . 8 Aims and strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Getinge's shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
BUSINESS ACTIVITIES
Business area - Extended Care . . . . . . . . . . . . . . . . . . . Business area - Surgical Systems . . . . . . . . . . . . . . . . . . Business area - Infection Control . . . . . . . . . . . . . . . . . Getinge in society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business processes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 24 34 44 48
FINANCIAL INFORMATION
Directors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial risk management . . . . . . . . . . . . . . . . . . . . . . Proposed allocation of profits. . . . . . . . . . . . . . . . . . . . Consolidated income statement . . . . . . . . . . . . . . . . . Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . Consolidated cash flow statement . . . . . . . . . . . . . . . . Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . Notes to the consolidated accounts. . . . . . . . . . . . . . . Income statement, parent company . . . . . . . . . . . . . . . Balance sheet, parent company . . . . . . . . . . . . . . . . . . . Cash flow statement, parent company . . . . . . . . . . . . . Notes to the parent company’s accounts. . . . . . . . . . . Auditors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Group management and auditors . . . . . . . . . . . . . . . . . Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50 52 53 54 55 56 57 59 69 70 71 72 77 78 80 82
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The year in brief
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Orders received
– rose by 5% to SEK 8,773 million (8,376 m)
Net sales
– rose by 6% to SEK 8,640 million (8,148 m)
Profit before tax
– climbed by 17% to SEK 876 million (750 m)
Extended Care
– improved operating profit and operating margin – continued focus on organic growth
Infection Control
– greater competitiveness through more efficient manufacturing structure – repositioning for better profitability
Surgical Systems
– good growth in profitability – stable platform for continued expansion – acquisition of Heraeus Med Tec underpins Getinge’s position in Surgical Systems
Cash flow
– strong improvement during the year
Dividend
– proposal to raise dividend to SEK 4.25 per share (3.75)
Five-year summary The Group Net sales SEK m of which overseas sales, % Operating profit SEK m Operating margin, % EBITDA margin, % Profit before tax, SEK m Net profit for the year, SEK m Operating capital, SEK m Shareholders' equity, 31 December, SEK m Return on operating capital, % Return on equity, % Net debt/equity ratio, multiple Equity/assets ratio, % Interest cover, multiple Net investments in fixed assets, SEK m 1) No. of employees, 31 December EPS, SEK 4) Cash flow per share, SEK per share Shareholders' equity, SEK per share Dividend, SEK per share 2) Market price, 31 December, SEK per share Dividend yield, % No. of shares, 31 December
1) 2) 3) 4)
1998 4,345.0 94.5% 652.9 15.0% 18.5% 602.6 476.7 2,610.6 1,221.0 25.0% 39.1% 1.41 27.6% 8.0 131.8 3,724 10.20 -0.29 26.12 3.25 122.00 2.7% 45,421,632
1999 4,884.7 94.5% 692.2 14.2% 18.0% 636.2 477.7 2,988.2 1,560.8 23.2% 35.1% 0.97 35.7% 9.2 167.4 3,812 10.22 9.35 33.39 3.50 96.00 3.6% 45,421,632
2000 5,253.5 95.0% 697.03) 13.3%3) 17.0% 623.7 467.8 3,356.8 1,931.0 20.8%3) 27.6% 1.92 24.2% 6.8 110.3 5,298 10.01 1.91 41.31 3.50 112.50 3.1% 45,421,632
2001 8,148.2 96.9% 974.0 12.0% 16.5% 750.4 525.3 6,592.8 2,952.9 14.8% 20.4% 1.36 30.8% 4.2 180.9 5,330 10.60 -1.84 58.51 3.75 172.00 2.2% 50,468,480
2002 8,640.1 96.9% 1,049.5 12.1% 16.6% 875.6 621.7 6,528.7 3,158.2 15.9% 21.1% 1.07 33.5% 5.9 149.6 5,556 12.32 21.04 62.58 4.252) 178.00 2.4% 50,468,480
Excluding equipment hired out. As per the proposal by the Board and President. Excluding the refund from SPP of SEK 23.2 million A new share issue was carried out at the beginning of April 2001. For information per share for the time prior to this, the bonus issue element in the new share issue was calculated by converting it using a factor of 0.9717 (corresponding to 46 745 243 shares instead of 45 421 632), where 2001’s average no. of shares was 49 537 676
DEFINITIONS Operating capital Return on operating capital Return on equity EBITDA margin Dividend yield Cash flow per share Net debt/equity ratio Interest cover Operating margin Equity/assets ratio EPS
Total assets, less liquid funds and non-interest-bearing provisions and liabilities, based on the average, for the year Operating profit in relation to average operating capital. Net profit for the year in relation to average shareholders' equity. Operating profit before depreciations and amortisation in relation to net sales. Dividend in relation to the market share price on 31 December. Operating cash flow after investments in tangible assets divided by the average number of shares. Net debt in relation to shareholders’ equity, plus minority interests Profit after net financial items plus interest costs in relation to interest expenses Operating profit in relation to net sales Equity plus minority interests in relation to balance sheet total Net profit for the year divided by the average number of shares
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Group overview Getinge is a world-leading supplier of medical equipment used in infection control and prevention, surgical workstations and care of the elderly and disabled. The Group has 5,600 employees, working at some 70 companies in 25 countries. In 2002, Getinge had sales worth SEK 8.6 billion, of which 97% was generated outside Sweden. Over the past eight years, Getinge has made a number of important acquisitions and the Group now consists of a broad enterprise with three business areas.
BUSINESS AREA EXTENDED CARE Hygiene Systems
Patient Handling
Wound Care
Hygiene Systems covers ergonomic bathing and showering solutions. The products are adapted to different levels of mobility and forms of residential care. Research and development, as well as most of production, is located in Eslöv, Sweden.
Patient Handling systems cover mobile and fixed solutions for lifting and transferring patients. Systems are adapted for various levels of mobility. Research and development, as well as most of production, is located in Gloucester, UK.
Getinge’s Wound Care systems encompass mattresses for prevention and treatment of pressure sores, specially adapted beds, as well as products for heat treatment. Research and development, as well as most of production, is located in Waterlooville, UK.
BUSINESS SCOPE
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Systems for hygiene routines and the transfer of the elderly and disabled, as well as products that prevent and treat pressure sores and bedsores. The product range covers bath, shower and hydrotherapy products, support equipment for patient handling, and clinically-tested mattresses for the treatment and prevention of pressure sores among people with diminished mobility.
STRATEGY
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PRODUCT LEADERSHIP. To continuously develop and expand the market
through product development. INTEGRATED SOLUTIONS. The business area’s broad product range and a well
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developed marketing organization with a consultative focus, will enable a wider range of responsibility to be taken for the working environment and quality of care. DOCUMENTED CUSTOMER BENEFITS. The documented positive effects for caregivers and care recipients will be the basis for what Getinge offers its customers and enable new financing and payment solutions, in which Getinge and customers share the risk.
PRIORITISED ACTIVITIES
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Greater market penetration via an expanded sales organization and customer training. Geographical expansion – Japan and developing markets. Greater investment in marketing and training schemes. Product development – showering solutions and lighter patient lifters Distribution synergies – wound care.
MARKETING ORGANIZATION AND BRANDS
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MARKETING ORGANIZATION: the business area has a central marketing
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CUSTOMER SEGMENTS AND GEOGRAPHICAL MARKETS
organization that coordinates global sales and marketing. 97% of sales are made via the business area’s own sales companies. The business area has 330 sales representatives and 370 service technicians. BRANDS: the business area works under one strategic brand – ARJO. Other brands in the business area exist locally or with more limited ranges than ARJO.
NET SALES PER CUSTOMER SEGMENT Acute health care: 10% Long-term care: 80% Specialized care & home care 10% NET SALES PER GEOGRAPHICAL MARKET Western Europe: 60% USA & Canada: 36% Asia & Australia: 3% Rest of the world: 1%
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BUSINESS AREA SURGICAL SYSTEMS Surgical Tables
The surgical table range covers both fixed tables with integrated patient transport solutions and mobile tables. Research and development, as well as production, are concentrated at Rastatt, Germany.
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BUSINESS AREA INFECTION CONTROL
Surgical Lights
Ceiling Service Units
Disinfection
Sterilization
The surgical light range is among the very best available.We were the first to use gas as a light source, which offers many benefits. Most of production is carried out in Ardon, France.
Getinge’s ceiling service units are used for various types of medical apparatus needed in the proximity of a surgical workstation, e.g. equipment for anaesthesia and screens for image guided surgery.
Disinfection covers flusher disinfectors for health care and long-term care, and washer disinfectors for health care, research and the pharmaceutical industry. Research and development, as well as most of production, is located in Växjö, Sweden, and Toulouse, France.
Sterilization covers sterilizers for the dental sector, health care, research and the pharmaceutical industry, as well as system accessories and computerized documentation systems. Research and development, as well as most of production, is located in Getinge, Sweden.
Complete systems for surgical workstations, operating rooms and specialized clinics. Products for intensive care. The product range covers surgical tables, surgical lights and ceiling service units for various types of medical equipment.
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PRODUCT LEADERSHIP. The business area will be a leader in quickly meeting new customer demands with adapted products, in a sector characterised by rapid change. INTEGRATED SOLUTIONS. To provide integrated solutions in which the individual products combine to create the best in ergonomics, efficiency and safety. SERVICE. The industry’s best and fastest service coupled with top-quality products, will guarantee maximum availability of operating rooms.
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Complete integration and restructuring of Heræus Med Tec. Evaluate new attractive expansion areas in Surgical Systems. Develop distribution synergies (cross selling). Product leadership in image guided surgery, endoscopy and integrated workplaces for surgery and radiology. Increase market shares in the US and Japan.
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MARKETING ORGANIZATION: the business area has a central marketing
organization based in Rastatt, Germany. 70% of sales are via the business area’s own sales companies. The business area has 200 sales representatives and 250 service technicians. BRANDS: the business area works under three strategic brands – Maquet, ALM and Hanau.
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Complete systems to prevent the onset and spread of infection for health care, long-term care and the pharmaceutical and medical technical industries. The product range covers disinfectors, sterilizers, documentation systems and ancillary equipment, as well as service and consulting. World-leading position with own representation in all its important markets. COST LEADERSHIP. To utilize the business area’s world-leading position to maintain the sector’s lowest manufacturing costs through efficient production and effective distribution. INTEGRATED SOLUTIONS. To position the Getinge brand as the sector’s best solution provider, where Getinge’s broad product range and expertise will benefit customers. SERVICE. To utilize Getinge’s well developed service network as a competitive advantage, through actively bundling and marketing innovative services.
Strengthen and position Getinge as a system supplier. Improve the manufacturing structure. Develop the organization. Increase investments in developing products for material handling, ergonomics, low-temperature sterilization and disinfection. Expand the service organization.
MARKETING ORGANIZATION: the business area has a central marketing organization based in Getinge. 90% of sales are made via the business area’s own sales companies. The business area has 200 sales representatives and 600 service technicians. BRANDS: the business area works primarily under one strategic brand – Getinge.
NET SALES PER CUSTOMER SEGMENT Acute health care: 100%
NET SALES PER CUSTOMER SEGMENT Acute heath care: 60% Long-term care: 10% Industry: 30%
NET SALES PER GEOGRAPHICAL MARKET Western Europe: 58% USA & Canada: 20% Asia & Australia: 16% Rest of the World: 6%
NET SALES PER GEOGRAPHICAL MARKET Western Europe: 46% USA & Canada: 38% Asia & Australia: 10% Rest of the world: 6%
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Comments by the CEO
The Getinge Group is the leading supplier of equipment in the areas of surgical workstations, infection control and ergonomic solutions for long-term care. Our sales of products and services span more than 100 markets, and we have production at 20 plants in nine countries. Our overall ambition is to provide, through partnership with our customers, products and services that contribute to reduced care costs and improved quality of care.
workstations. We offer the market’s most comprehensive and sophisticated range of products and services for handling sterile and disinfected goods. We are one of the pioneers of equipment that prevents work-related injuries in long-term care and continuously develop new solutions and services to meet the considerable demands and challenges that characterise this part of the care sector.
Continued organic growth and strategic acquisitions 2002 – a further year of steady growth
2002 was yet another successful year for Getinge. The acquisition of Heraeus Med Tec was completed in Q2, and an extensive rationalization programme has begun. The Heraeus acquisition means that we are now very well positioned for continued growth in Surgical Systems with a market share that is around three times larger than our closest competitors. In the Infection Control business area, efficiency-improvement measures for production and marketing continued during the year, and there was an improvement in terms of profitability in the second half of 2002. Although the sales growth in Extended Care was weaker than the very strong performance in 2001, the trend has been good on the profit side. The Group’s sales rose by 6% to SEK 8.6 billion. Profit before tax was SEK 876 million, a climb of 17%. The positive profit trend means that we can propose to the AGM an increase in the dividend to SEK 4.25 per share (3.75).
Deep involvement in care sector challenges
Trends in the care sector are shaped by a number of factors: Technical and methodological advances mean that surgeons can carry out increasingly complex surgical procedures. This, of course, heightens requirements for more efficient equipment. Important steps forward are being made continuously, for instance in image guided surgery. These developments mean that today’s surgical procedures can be done faster, cheaper and with more precision, and the procedures are less stressful for the patients. The ability to disinfect and sterilize surgical instruments and utensils has long been a prerequisite for safe and reliable health care. Today, the challenge lies in doing this in a rational way. Great emphasis is placed on being able to control routines effectively and thereby achieve an optimal utilization of the hospital’s total resources. The long-term care sector faces a growing challenge: the number of elderly people is growing, while fewer young people are seeking to work in the care sector. Therefore, the major task is to make this care cost-effective while ensuring it can offer not only a good working environment without injurious workloads for staff, but also dignified living conditions for care recipients. The Getinge Group is actively involved in these processes. We are driving the development of products and technologies for surgical
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In general, the demand for medical equipment and products is growing steadily due to demographic trends and because more and more people are getting access to health care. Therefore, we continue to have high ambitions for our organic growth. This means, among other things, an intensified focus on product development and a deeper approach to marketing. The market for surgical products is still partly fragmented, and we will make further strategic acquisitions to strengthen and broaden the position of Surgical Systems. In the past nine years, Getinge has completed over 25 acquisitions. We have the necessary competence to carry through attractive purchases and successfully integrate the acquired companies into our business structure and thereby realize potential synergy effects.
Surgical Systems – continued strong expansion
Surgical Systems, established in 2001, is our youngest business area. The growth trend during the year has continued to be good, and work on developing the business area has proceeded according to plan. With the acquisition of Heraeus Med Tec, all the foundation stones are now in place. In 2003, the production structure of the business area will be refined: by year-end all surgical tables will be manufactured at the plant in Rastatt, Germany, and all surgical lights in Ardon, France. Orders received, sales and profit have developed satisfactorily during the year, even though performance in Germany has been weak compared with a very strong 2001. Surgical Systems is well positioned for growth. The outlook is considered especially good in the US and Japan, where market shares are relatively low. The image guided surgery side is expanding, and the business area is on the leading edge of technological development with the AWIGS and VIWAS systems. The global market for equipment and products for operating rooms is estimated at USD 70 billion, and is still very fragmented to a large extent. Through acquisitions, the business area will focus on developing leading positions in closely related niches.
Infection Control – repositioning for increased profitability
The Infection Control business area has been considerably reshaped in recent years. Following a period of many acquisitions in the 1990s, we have focused on building a coherent and competitive business
area, both in terms of our manufacturing structure and sales and marketing. During the year, production of sterilization equipment has been concentrated to the main plant in Getinge, while the remaining plants have been transformed into units for assembly. Due to these radical changes, the business area, which previously suffered from a poor structure and high cost levels, saw a clear reverse in the operating margin trend during the second half of the year. A refined global marketing organization was also established in 2002 with responsibility for marketing and sales of all the business area’s products in all markets. With the previous acquisitions, we have had a situation where a large number of brands led to splintered and cost-intensive communications with our customers. We have therefore driven a brand project that has refined this variety of brands, so we can be sharper and more cost-effective in our marketing. In 2003, long-term work will begin on repositioning the business area. In the future, the focus will be on sales of integrated systems, services and various forms of knowledge provision. Product development, which in recent years has focused on standardization in the World Sterilizer Project, will change direction. Prioritised areas in future will be point-of-use applications, i.e. disinfectors and sterilizers that are close to the user, and efficient solutions for temperaturesensitive instruments, as well as solutions that optimise goods handling with a focus on flow, logistics and ergonomics.
Joint organization for Surgical Systems and Infection Control in the US
The Group has an integrated organization for Infection Control and Surgical Systems in the US . This structure provides an effective way to obtain distribution synergies and be an attractive partner to the major hospital chains and GPOs (Group Purchasing Organizations). When Getinge acquired MDT/Castle Inc. in 1996, there was a rapid initial improvement in profitability through cost rationalizations, but after that, progress has been too slow. In early 2002, we therefore strengthened management in the US with a clear focus on profitability, and also started working towards a long-term positioning of the company as an innovative and nimble service company in the American market. In the wake of this change, a large number of activities have been carried out for improved profitability in 2003. Production facilities in the US have been given a clear focus on assembly for core business. Other production operations have been moved to our plants in Europe or outsourced to American subcontractors. This change will result in considerable improvements in competitiveness and profitability.
the market, with a strong product range and a good marketing organization. Despite a weaker sales trend, profitability has developed satisfactorily, above all because of enhanced cost-effectiveness in production and logistics. A radical programme to improve profitability in the wound care product line was initiated during the year. This work will have a positive effect on profit in 2003. Product development continued at the same pace in 2002, even though there were few product launches. In 2003, we will introduce a number of strategically important new products. Product development will be concentrated on those product segments where we are currently underrepresented, such as ceiling hoists, and light, easy-touse products for lifting and showering. Market conditions, which are mainly affected by demographic and economic factors, continue to be favourable for the business area. The percentage of the elderly in the population continues to rise. This is driving demand for long-term care that is both cost-effective and sensitive to patients’ needs, with good conditions for the elderly and nursing staff. In 2002, a number of key people were recruited to build up an effective organization for sales to developing countries. Today, these sales account for a very small proportion of total turnover, but good conditions exist for positive developments in the next few years. Investments will also be made to improve an already robust marketing organization, whose main focus will continue to be on our present market segments, where our position is particularly strong.
Outlook for 2003
2003 will be another good year for the Getinge Group, with growth in line with our organic expansion targets. Market conditions will be largely the same as those of 2002, i.e. good demand in the US, Far East and Central Europe, and moderate growth in the rest of Europe. On the plus side for 2003 is the improved competitiveness of Infection Control, the ongoing production rationalizations in Surgical Systems, the acquisition of Heraeus Med Tec, and the new products that Extended Care will introduce. Cash flow, which was strong in 2002, will be further improved by establishing a more effective distribution structure and an even sharper focus from the top management. On the minus side for 2003, we see an unfavourable exchange rate situation. However, all in all our assessment is positive, and we expect faster profit growth than in 2002.
Extended Care – positioned for organic growth
Extended Care continued to be the Group’s most profitable business area. The business area has a good structure and is well positioned in
Johan Malmquist
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Aims and strategies
Business concept – a competent solution provider
Getinge is a medical technical Group that through its products and services shall be a competent solution provider for customers within health care, long-term care and industry. The Group's products, services and competence shall contribute in a quantifiable way to quality enhancement and the reduction of customers' total costs. Strategy
• To achieve and retain market-leading positions in the niche markets in which we have chosen to be active, by offering complete systems and knowledge-based solutions.
Financial objectives
• Profit growth measured as profit before tax shall amount to 15% per year on average and shall be achieved by a combination of organic growth and acquisitions. • Growth through acquisitions averaging 10% per year shall largely be financed by the Group’s own cash flow.
Getinge's solutions are an important element in addressing the challenges that face the care sector. A population that is getting older and heavier requires more care. This will mean a rise in care costs and a greater workload for care institutions worldwide. As the world-leading supplier, Getinge can help to meet these challenges by developing new systems and solutions that improve both the quality of care for patients and the working environment for nursing staff, while promoting better utilization of resources in the care sector. Strategy – leading positions in selected markets
The Getinge Group strives to achieve and retain market-leading positions in the niche markets in which we have chosen to be active. Organic growth forms the basis of the Group's expansion and means: Sales via our own sales companies of complete systems in which the breadth and depth of our competence benefits customers. Getinge provides broad solutions that cover products, services, consulting, training and maintenance in specific areas such as infection control, surgery or care-related ergonomics. Active marketing to further deepen penetration of existing markets. Significant investments to develop maintenance and services. By focusing on customer benefits in terms of qualitative and quantitative enhancements, the price of the services diminishes in importance. Active product development and active product acquisitions as a complement to internal product development. Geographical expansion. Acquisitions aimed at establishing and broadening new business areas that are attractive from a growth or overall sector perspective. Synergies with existing business areas are therefore decisive.
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Organization
The Getinge Group is built around three business areas. A business area consists of a sales and marketing organization and a number of business units. All sales companies belonging to a business area report to a sales and marketing manager, who is responsible for distribution, sales and marketing of the business area's products. For North America, the Group has a joint marketing, sales and maintenance organization for Infection Control and Surgical Systems. Health care is the most important customer for both areas. Business unit managers have a global responsibility for a product area with an emphasis on manufacturing and product development. Getinge's organization is flat, and decision-making is highly decentralized. Considerable emphasis is placed on local management and its competence to react rapidly and independently. The Group currently has around 70 operative units. Getinge's business areas
Since it became a listed company in 1993, Getinge has on average grown in profit terms by 24 percent annually. From being a company with a very narrow product area, the Group has developed into a world-leading supplier in three areas – Infection Control, Surgical Systems and Extended Care – through a consistent focus on product and concept development, strategic acquisitions and active marketing. Infection Control The business area supplies customers in industry and the health care and long-term care sectors with complete solutions to prevent the onset and spread of infections. Using internally developed IT software, customers can benefit from a quality-assured process for handling sterile goods. Customers within industry, primarily pharmaceu-
tical companies, are offered customer-specific washer disinfectors and sterilizers for production and research. Products are marketed under the Getinge and Lancer brands. Surgical Systems The business area offers complete systems for surgical workstations consisting of surgical tables, surgical lights and ceiling service units for medical equipment. These systems create rationalized, efficient and ergonomically sound working environments for different types of surgical procedure. The range covers products for open surgery as well as the growing market for minimally-invasive procedures (keyhole surgery). The products are marketed mainly under the Maquet, ALM and Hanau brands, and are represented in some 100 markets. Extended Care The business area offers systems, products and various types of services that aim to improve the working environment by dramatically
reducing the occurrence of stress injuries among staff and thereby also reducing costs. At the same time, use of the business area’s transfer and hygiene solutions leads to improved quality of life for residents in long-term care. The business area also supplies products to prevent and treat pressure sores, which are one of the consequences of patients' restricted mobility. Long-term care is the most important customer category, but acute health care has good growth potential, especially in the areas of patient handling and wound care. Production
The Getinge Group's production is currently carried out at 20 manufacturing facilities in nine countries. The business units’ manufacturing is directed towards value-creating production, and non-critical components are outsourced to subcontractors. This allows internal resources to be focused on development, design, assembly and quality assurance. The supplier base for the Infection Control and Surgical Systems business areas is mainly in North and Central
Getinge’s growth is the result of a clear and consistently implemented niche strategy, with a focus on product development and active marketing, complemented by acquisitions.
The Getinge Group’s sales performance since it became a listed company in 1993, SEK m 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
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Europe, whereas the Extended Care business area already has a significant and growing proportion of its suppliers in the Far East and Eastern Europe. Distribution
About 95% of the Group's sales are made through its own sales companies. This is a conscious choice that is decisive for system sales. It also ensures that knowledge and competence is maintained at a high level, and that marketing takes on a more long-term character. The direct servicing of the customer base means that the profitable aftermarket can also be kept within the Group. Product development
Product development is a cornerstone in the Group's organic growth. Getinge complements its own product development by cooperating with competent, external partners. Acquisition is an additional way to gain access to new technology and new products. A number of complementary product acquisitions have been made in recent years. Competitors
Among the competitors in Infection Control, there is only the US company, Steris, that can measure up to Getinge in terms of size and width of range. Steris is particularly strong in the US in products for health care. In addition, there is MMM in Germany, Johnson & Johnson in the US, and Sakura in Japan. The Italian company, Fedegari, is the biggest competitor on the industry side. The market for hygiene systems is fragmented with small local competitors. Our biggest competitor in patient handling is Liko of Sweden, and in wound care there are two global competitors, KCI and HillRom, USA. In the Surgical Systems area, the main competitors are Steris, Mizuho of Japan and Berchtold of Germany.
Risk management in the Getinge Group
The biggest single risk for Getinge is political. Changes in different benefit systems in the health care sector can have major effects on individual markets. As Getinge is active in a large number of geographical markets, this risk is small for the Group as a whole. The risk of other companies copying our products is limited, either due to patents or because manufacture of the products requires such a heavy investment in tools and such large sales volumes that our competitors have no viable means of copying them. New EU norms can mean that customers may perceive little difference in product quality between the various manufacturers. Knowledge, service and partnership will therefore become decisive competitive parameters in the future. Getinge is already well positioned in these areas, and further investments are being made continually. Future expansion
The acquisitions that have characterised much of Getinge's expansion in recent years are an important complement to internally-generated growth, primarily in Surgical Systems. However, the basis of the Group's growth will be organic. This means a continued focus on sales of complete systems, active product development and innovative marketing programmes. The Getinge Group has rapidly taken a world-leading position in the expansive Surgical Systems area. The Group sees good opportunities to broaden this business area’s scope with products in closely related areas, such as surgical instruments or life support equipment.
The Getinge Group’s business areas
Extended Care
Infection Control
SALES & MARKETING
Surgical Systems
SALES & MARKETING
PRODUCT DEVELOPMENT & PRODUCTION Hygiene Systems Patient Handling Wound Care
SALES & MARKETING
PRODUCT DEVELOPMENT & PRODUCTION Disinfection Sterilization
The Group’s sales per geographical market:
PRODUCT DEVELOPMENT & PRODUCTION Surgical Tables Surgical Lights Ceiling Service Units
Net sales per business area 2002
2001
Infection Control:
40 %
Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 3%
Extended Care:
31 %
Rest of the Nordic countries . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 2%
Surgical Systems:
29 %
Rest of Western Europe . . . . . . . . . . . . . . . . . . . . . . . . 48% . . . . . . . . . . . . 48% Eastern Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 2%
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North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32% . . . . . . . . . . . . 33%
Operating profit per business area
Asia & Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9% . . . . . . . . . . . . . 9%
Infection Control:
29 %
Rest of the world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% . . . . . . . . . . . . . 3%
Extended Care:
47 %
Total
Surgical Systems:
24 %
100%
100
Getinge's shares
Shares
No. of shares traded in 000s (incl. after-market)
Afv General index 220 200 180 160
2000 140 1500 120 1000 100 500
80 JAN 02
FEB
MAR
APR
MAJ
JUN
JUL
AUG
SEP
OCT
NOV
DEC (c) SIX
Getinge's Class B shares have been listed on Stockholmbörsen’s A list since 1993. A round lot consists of 200 shares. In 2002, Getinge's share price reached a high of SEK 207.0 (7 February 2002) and a low of SEK 138.0 (24 July 2002). The final price paid for 2002 was SEK 178. The number of shares traded during 2002 was 27,150,112 (37,482,155 ). There are approximately 17,000 shareholders. The percentage of foreign-owned shares amounts to 33.2% (32.7%) . The percentage of institutional ownership is 41.5% (42%) of which equity funds constitute 14.8% (15%). Share capital and ownership structure
Dividend policy
Future dividends will be adjusted in keeping with Getinge's profit level, financial position and future development potential. The aim of the Board is that dividends will comprise in the long-term, approximately one-third of the profit after financial items at a standard rate of 28% tax. Getinge is analysed by:
ABG Sundal Collier, Alfred Berg, Carnegie, Cheuvreux Nordic, Danske Bank, Enskilda, Erik Penser, Handelsbanken, JP Nordiska, Nordea, Swedbank and UBS Warburg.
The share capital in Getinge at year-end 2002 was SEK 100,936,960 divided between 50,468,480 shares. Each share has a nominal value of SEK 2. All shares carry an equal right to dividends. Every class A share carries 10 votes, and every class B share carries one vote. SHAREHOLDER STRUCTURE OF GETINGE AB ON 28 DECEMBER 2002 1 Holding Ownership % Share holding% 1-500 79.7 4.2 501-1.000 10.5 2.6 1.001-10.000 8.3 6.8 10.001-100.000 1.0 10.1 100.001-10.000.000 0.5 76.3
DEVELOPMENT OF SHARE CAPITAL Year Transaction 1990 Formation 1992 Split 50:1, nom SEK 100 to SEK 2 1992 Directed new issue 1993 Directed new issue 1995 Non-cash issue 1996 Bonus issue 2:1 2001 New issue 1:9 at SEK 100
Number of shares after transaction 500 25,000 5,088,400 6,928,400 15,140,544 45,421,632 50,468,480
Share capital after transaction 50,000 50,000 10,176,800 13,856,800 30,281,088 90,843,264 100,936,960
LARGEST SHAREHOLDERS AS OF FEBRUARY 2003, including known changes1 No. of class No. of class % of % of Company A shares B shares capital voting rights Carl Bennet companies 3 375 540 3 755 031 14.1 46.4 Robur’s equity funds 4 294 473 8.5 5.3 Latour 3 565 000 7.1 4.4 Alecta 1 324 133 2.6 1.6 AFA Insurance 1 060 200 2.1 1.3 SHB 1 004 800 2.0 1.2 SHB funds/life 947 834 1.9 1.2 Skandia 883 776 1.8 1.2 Govt of Singapore 737 170 1.5 0.9 Industritjänstemannaförb 652 050 1.3 0.8 Other 28 868 473 57.1 35.7 Total 3 375 540 47 092 940 100.0 100.0
SHARE CAPITAL BREAKS DOWN AS FOLLOWS: Number Number Type of share of shares of votes A 3,375,540 33,755,400 B 47,092,940 47,092,940 Total 50,468,480 80,848,340
% of capital 6.7% 93.3% 100.0%
% of voting rights 41.8% 58.2% 100.0%
1. Source.VPC and SIS owner service
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Business Area Extended Care
FIVE-YEAR SUMMARY Extended Care Orders received, SEK m Net sales Share of Group’s net sales Gross profit Gross margin, % Operating costs, SEK m Operating profit Share of Group’s operating profit Operating margin, % No. of employees
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1998 1,714.1 1,663.0 38.3% 888.7 53.4% -605.8 282.9 43.3% 17.0% 1,306
1999 1,981.6 2,007.7 41.1% 1,051.6 52.4% -731.2 320.4 46.3% 16.0% 1,383
2000 2,137.7 2,110.9 40.2% 1,042.3 49.4% -719.3 323.0 46.3% 15.3% 1,559
2001 2,643.9 2,655.5 32.6% 1,307.1 49.2% -885.8 421.3 43.3% 15.9% 1,594
2002 2,703.1 2,720.0 31.5% 1,387.9 51.0% -900.3 487.6 46.5% 17.9% 1,647
Management The Extended Care business area consists of three business units; hygiene systems, patient handling and wound care, with manufacturing in Sweden, the UK, Germany, Belgium and Canada. The head of the business area is Albrecht Knauf.
Albrecht Knauf
The Extended Care business area is a world-leading supplier of hygiene systems and lifting and transfer aids for longterm care, and also offers specialised mattresses for wound care. The roots of the business area stem from the early 1960s, when the first hygiene systems and lifters were produced. Nowadays we offer our customers the widest and most sophisticated range of products and services on the market. Our market share is around 20% of the global market, which is estimated at SEK 12 billion, with a 60% market share for hygiene systems, 40% for patient handling and 6% for wound care.We have a global marketing organization of 24 sales companies and sales in a further 40 countries via our network of distributors.
Review of 2002
2002 was a year of positive development in terms of profit for Extended Care, whereas a slackening off in the rate of increase was noted on the sales volume side after a very strong 2001. Profit increased by 15.7% to SEK 487.6 million (421.3). The operating margin also improved in 2002 and for the full year was 17.9% (15.9). Orders received increased by 2.2%, which is equivalent to organic growth of 5%. The US and UK reported weak growth during the year, whereas a very strong positive sales trend could be seen in Australia (25%), Belgium (15%), Holland (18%), Canada (12%), Spain (33%) and the Czech Republic (28%). Although 2002 was a year of few product launches, we developed a number of new products that will be introduced on the market in 2003 including a completely new range of ceiling hoists. The business area’s training programme, which covers ergonomics and working techniques for the care sector, was launched in the UK and attracted a healthy order intake. In the US the Diligent programme, which is a combination of training and equipment, generated sales worth USD 2.4 million during the financial year. The business area’s logistics project for more cost-effective logistics and reduced tied-up capital continued according to plan in 2002 and is expected to be completed in 2003.
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The business area’s customer base is in the institutional care sector and consists mainly of nursing homes, various types of residential elderly care facilities and hospitals.
Our customers
The market
The Extended Care business area’s customer base is solely in the care sector and consists of nursing homes, various types of residential elderly care facilities and hospitals. The biggest customer segment is made up of publicly financed institutions, which account for around 50% of sales. Charitable organizations such as Caritas and the Red Cross account for 30% and privately financed institutions for 20%. The greater part of sales, 80%, relates to various types of long-term care. Other sales are divided between acute health care, rehabilitation and home care. The care sector, and long-term care in particular, is currently having to confront major issues due to demographic trends and the increased number of overweight people. The rising number of elderly people has meant that only those who require the highest level of care get placed in nursing homes. This has led to a heavier workload for staff, with different types of stress and attritional injuries as a result. In addition to the human suffering that this causes, it also means considerable costs for the care sector, for instance from increased insurance costs and, in many markets, large compensation claims. This situation also means that it is difficult to recruit personnel, and the consequences are staff shortages, an even heavier workload and high wage inflation. Extended Care’s overall offer means that the working environment is improved through the use of ergonomically designed equipment for daily activities such as patient transfers from bed to wheelchair or toilet, etc, and solutions for bathing and showering. One person can now perform many of the working routines that previously required two nurses. This increases efficiency while significantly reducing the risk of injuries. The introduction of ergonomic aids also improves the situation for residents and patients. They now have more opportunities to get out of bed, get to the toilet in time, and in comfortable and dignified ways carry out their daily hygiene routines such as bathing or showering. In short, their quality of life is improved. We also offer our customers a range of rehabilitation products that are particularly suitable for people with reduced mobility. The diminished mobility of many of the residents means that there is a clear risk of pressure sores. People who cannot turn themselves in bed or alter their centre of gravity when sitting risk the onset of pressure sores within a few hours. Pressure sores are very painful for those affected and require long and cost-intensive treatment. Therefore, the business area has developed a range of specialized mattresses, which can be used for both preventive purposes and in the treatment of pressure sores. In addition to our broad programme of systems and products, we also offer our customers a number of services, e.g. assessments of a specific care unit’s equipment requirements, training of staff in correct working techniques and advice to architects who design nursing homes and hospitals.
The global market for the business area is valued at approximately SEK 11.7 billion, with 1.7 billion for hygiene systems, 2.0 billion for patient lifters and 8.0 billion for wound care products. Annual market growth is estimated at 6-8%. Growth in patient lifters is higher than for hygiene systems. Getinge’s market shares are as follows: hygiene systems 60%, patient lifters 40% and wound care products 6%. Growth is occurring mainly in patient handling, where the ceiling hoist product category, (fixed installations of ceiling-mounted lifters) has grown very dramatically in recent years. Good growth is also apparent in technical service, the aftermarket and consulting services. Marketing organization Having a strong foothold in local markets and long-term relations with our customers is a fundamental part of the business area’s strategy. At present, Extended Care has 24 sales companies, which account for 98% of total sales. Other sales are made via a network of distributors, above all in Asia and Central Europe. With 330 sales representatives and 370 service technicians, we have both broad and deep contacts with our customers, and therefore get first hand knowledge of trends in the market. In late 2001 we established a new sales division in the US called Diligent Services, which offers ergonomic intervention programmes to hospitals and nursing homes. The programme consists of introducing both ergonomic products in care routines and continuous training of staff in working techniques. A Diligent programme runs for three years and guarantees a considerable reduction in the number of work-related injuries. In 2002, its first full financial year, Diligent secured agreements with 27 new institutions and now has a total of 35 ongoing programmes. Diligent has been approved by the American Hospital Association as a supplier of ergonomic patient handling solutions. Diligent’s sales, divided between equipment and services, amounted to USD 2.4 million in 2002. In Holland the business area has for many years run commercial ergonomics programmes aimed at the care sector. In 2002 sales amounted to EUR 1 million, which is an increase of over 30%. The same programme was launched in the UK market in 2002. In addition to this activity being profitable in itself, an increased knowledge of ergonomic matters in the market contributes to increased demand for the business area’s products and other services. Trends The most important external factor affecting Extended Care is the demographic trend that is leading to a higher percentage of the population being in need of care and professional nursing. The underlying need for the business area’s products and services will therefore increase considerably in the coming decades. Another trend that also seems favourable for the business area is the increased focus on working environment issues and the importance of being able to
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attract, recruit and retain staff. Clearly, a prerequisite for this is access to ergonomic aids in daily care routines. The greater obesity problem in industrialized countries will amplify and change the requirements of daily care. Product positioning The business area’s products and services are at the forefront regarding quality, functionality and design. However, the decisive factor for the customer is not individual product’s performance. On the contrary, it is becoming increasingly important to present complete solutions. Here the decisive factor is not individual products, but what results the combined measures such as assessments, products, training and technical service can give the customer in the form of improved working environment, enhanced quality of care and greater cost-effectiveness. Competitors Getinge is the only truly global supplier of systems for institutional long-term care. Competitors are generally local manufacturers active in one or a few geographical markets. Price is generally their main competitive weapon. No other supplier can match Getinge’s broad product portfolio. Competitors often specialize in either hygiene or lifting solutions. Their sales are usually made via external distributors, which means there is no direct contact with the customer. Getinge’s strength comes primarily from a well structured sales organization, strong marketing support, innovative solutions, high
Innovative, proactive product development is one of the cornerstones of the business area’s long-term strategy.
product quality and active product development. It is also becoming increasingly important to offer solutions that are a mix of consulting, technical service and products. Getinge is one of the few suppliers that can offer this combination. In hygiene systems the business area has a very good position with healthy market shares and a very strong product portfolio. Sakai has an estimated 8% of the world market, but concentrates on Japan. The English company, Chiltern, has 4%. On the lifter side, Liko is the biggest and fastest growing competitor with a market share of around 10%. Liko has good quality products, including a strong range of ceiling hoists. Their product range is narrower than Getinge's and limited solely to lifting equipment. Product development
Development of new products, systems and solutions with unique functionality is of central importance to the business area’s organic growth. Development work is organized according to the business area’s three business units: hygiene systems are developed in Eslöv, Sweden; patient handling products in Gloucester, UK and in Hamont-Achel, Belgium; and wound care products in Waterlooville, UK. All product development is done in close cooperation with the business area’s customers and marketing companies, and development projects are coordinated between the three business units, above all between hygiene systems and patient handling, where there are considerable synergies. At present, development resources are being concentrated on the product segments in which we are currently
Production in the business area is focused on a number of core areas such as surface finishing and assembly.
underrepresented, primarily ceiling hoists and simple, easy-to-use showering solutions. A new ceiling hoist range will be introduced in the first half of 2003 and further product launches will happen in the next 12 months. One of the most important factors in all development work is patients’ different mobility levels. If good and efficient care is to be provided, it is vitally important that patients do not get more help than they actually need. On the contrary, it is important that patients are stimulated to retain their level of mobility for as long as possible. Another crucial parameter is the working space that is available for different activities. One of the trends in long-term care is towards private bathrooms for individual use instead of large central facilities. This creates entirely new priorities in the design of functional products.
Production
The business area’s production is concentrated at our manufacturing plants in the UK and Sweden, which account for 80% of the value of production. The remaining 20% stems from our facilities in Belgium, Germany and Canada. After the radical reorganization in 2001, which centralized a number of key functions, we have achieved considerable synergies in production, purchasing and design – a fact clearly reflected in our profit for 2002. Constantly improving competitiveness is a prerequisite if the business area is to continue to perform well in terms of both sales volumes and profit. During the year
as part of this drive, we moved elements of production that had previously been based in the US to Eslöv. In 2002 we also established delivery times that are based on market requirements and raised average delivery reliability to over 96%. All production units achieved significant productivity increases during the year. The business area also reviewed its supplier structure, reduced the total number of suppliers, and increased purchasing from Asia and Eastern Europe.
Logistics
The business area’s production facilities are in several cases far from the main markets. This is why it is of utmost importance to find logistics solutions that satisfy our customers’ needs for exact deliveries in a cost-effective way. Consequently, a logistics project was initiated in 2001 that has run throughout 2002 and is expected to be completed in 2003. In the final structure all deliveries in Europe will go direct from the factory to the customer, while all invoicing will be handled centrally with a minimum of administrative costs.
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Quality
2003 – activities for increased growth
The business area’s products are designed to handle elderly and disabled people. That is why the utmost emphasis is placed on our product quality being of the highest standard in terms of functionality and safety. Concern for quality and safety is therefore something that permeates the entire chain from development and design to production. All of the business area’s main plants have ISO certified quality systems that set requirements for staff responsibility, premises and equipment, safety tests, documentation, trackability, and so on. As an important part of our overall quality-related work, we carry out attitude surveys among our customers to ensure that we are pursuing continuous improvement according to their perspective. In 2002 we also introduced structured benchmarking to help us achieve our aim to create a business of the highest quality. Electrolux, Tetra Pak and Atlas Copco are some of the companies we have cooperated with. Competence development for the staff is also an important instrument in quality-related work. During the year we intensified our focus in terms of needs-driven and target-oriented competence development. The objective is that all employees shall have an individual competence development plan. The number of training days at the production units increased by 30%.
2002 was a somewhat weaker year in terms of volume growth for the business area. In 2003 a number of initiatives will be carried out for the long-term development of the business area. New concepts and products are of the highest strategic importance if the business area is to continue to grow with maintained profitability. During 2003/2004 we will launch a number of products that will further strengthen our position. Geographical expansion is another priority. The business area’s sales to the developing markets are presently marginal, but our assessment is that we have very good opportunities for growth, particularly in Asia and Central Europe. The aftermarket, which is by its nature very profitable, also holds good possibilities for growth in the next few years, and our focus on it will be further intensified. Marketing in the form of innovative programmes and activities will be stepped up during the year, as will direct sales-supporting activities such as education, training and customer support. All things considered, we expect a further year of steady growth in our most important markets with particularly positive sales trends in Holland, France, Italy, Spain and among the developing markets in Asia.
EXTENDED CARE: SUMMARY WORLD MARKET Product segment Hygiene Systems Value SEK 1,700 m Growth, % approx. 5 Getinge’s market share, % 60
Patient Handling SEK 2,000 m 8-10 40
MARKET TRENDS Orders received per market 2002 2001 USA & Canada 934.0 962.8 UK 724.7 737.2 Germany 284.3 271.5 Rest of Western Europe 652.5 579.0 Rest of the world 107.6 93.4 Business area total 2,703.1 2,643.9 Changes adjusted for acquisitions and currency-related effects
Wound Care SEK 8,000 m approx. 5 6
Change -3.0% -1.7% 4.7% 12.7% 15.2% 2.2% 4.7%
NET SALES PER MARKET Western Europe: USA & Canada: Asia & Australia: Rest of the world:
60% 36% 3% 1%
NET SALES PER CUSTOMER SEGMENT Acute health care: 10% Long-term care: 80% Specialized care & home care 10%
DISTRIBUTION Own sales companies: Distributors:
98% 2%
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PRODUCT OVERVIEW EXTENDED CARE Leaders in quality and design
Our team of specialists in research and development work in close cooperation with caregivers, therapists and nursing staff worldwide. These contacts mean that we can rapidly identify and address new trends and needs. The business area retains its leading position by being first to market with innovative products that meet altered needs in the care sector. Our products offer added value such as efficiency, hygiene, safety, sound ergonomics and user-friendliness in a simple and functional design. Our lifters and bathing systems are used by thousands of people every day. Product quality is critical to their safety. The ISO quality assurance systems 9001:2000 and EN 46001 are used at our manufacturing plants in Eslöv, Sweden, and Gloucester, UK. All our products must undergo extensive function testing. The internal tests that are carried out are more comprehensive than those required to fulfil national and international regulations and directives. In 2003 all production plants in Extended Care will be certified for environmental management in accordance with ISO 14001.
BATHING SYSTEMS Rhapsody
Parker Bath
Freedom Bath
Rhapsody is the bath with the highest functionality and safety standards on the market.The bath has been developed for people with heavily diminished mobility.The bathtub is height-adjustable and key hole-shaped, providing good ergonomics for the caregiver.
The Parker Bath has been part of the Getinge Group since 2000, when the Parker Bath company was acquired. With the Parker sit bath, Getinge has a comprehensive bath range. Like the Rhapsody, it is heightadjustable for good ergonomics.
Freedom Bath was developed in, and for, the American market.The tub is primarily intended for various types of residential facilities for the elderly, where residents can perform hygiene routines unaided.The unique roller door enables an elderly person to get in and out of the tub without assistance.
SHOWERING SYSTEMS Carendo
Carendo is the first product in a new generation of solutions for showering. Carendo offers exceptionally good ergonomics for caregivers and good comfort and dignity for the care recipient. Carendo has a number of characteristics that make it unique on the market, including a function for simple diaper changing.
Concerto
Prelude
Concerto is a shower trolley that via simple transfers offers the possibility to take recumbent patients directly from bed to shower.
Prelude is a shower cabinet with good functionality. Among other benefits, it is possible to use a mobile lift chair to take the care recipient from bed to shower and back without manual lifting.
THERAPY SYSTEMS
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Axona
Entroy
Sidekick
Axona is a pool designed for hydrotherapy.The glass walls enable the therapist to monitor and correct the patients’ movements.
Entroy is a pool lift that helps people with diminished mobility get in and out of pools.
Sidekick is a mobile unit for localized hydromassage.The product is simply rolled in to the patient, who can be given treatment on arms and lower legs.
PASSIVE LIFTERS Opera with stretcher
Opera
Tempo
Trixie Lift
Bianca
Opera fitted with a stretcher is principally designed for acute health care, where there is often a need to move completely immobile patients.
Opera is a manual lifter with a lightweight design that makes it easy to manoeuvre. All functions are controlled rapidly and simply via a handset.The chassis can be easily opened and closed, which makes it possible to use the lifter for raising a patient from a wheelchair.
Tempo has many similarities with Opera, but with a simpler design and somewhat lower functionality.
Trixie Lift is a small and easy-touse lift intended for small institutions. Trixie Lift can be simply folded up and therefore requires very little storage space.
Bianca is a ceiling hoist that fulfils all the requirements for simple handling. The lift eliminates all manual lifting and can be installed in all types of rooms. It is always available when required for use, but never gets in the way.
Stedy
Exelsior
ACTIVE LIFTERS Encore
Chorus
Sarita
Encore is the latest active lifter from the Getinge Group. With its modern design and high functionality, Encore can be used for more patient categories than any other active lifter. Encore is also well suited for various types of rehabilitation.
Chorus is based on the same design as Encore, but has somewhat lower functionality.
Sarita is an active lifter especially adapted for small institutions.
Stedy is a unique compact product that can be used simply, quickly and efficiently for short transfers.
Exelsior is a simple and efficient active lifter with good functionality.
WOUND CARE PRODUCTS Trinova
Trinova offers 24-hour protection against pressure sores.Trinova’s mattress and seating system is an ideal solution when there is a high risk of pressure sores.
Bi-Wave Carer
Paragon 5000
Bi-Wave Carer offers a costeffective alternative, which is suitable for use both in acute health care and long-term care.
Paragon 5000 is a specialized bed developed for particularly acute situations such as deep burn injuries.
Pegasus Inditherm System
Pegasus Inditherm System is a product system designed to keep patients warm during and after operations – a factor that has very positive effects on clinical results.
Kombat K2
Kombat K2 is a prophylactic mattress that considerably reduces bodyweight and thus lowers the risk of pressure sores appearing.
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Business Area Surgical Systems
THREE-YEAR SUMMARY Surgical Systems Orders received, SEK m Net sales, SEK m Share of Group’s net sales Gross profit Gross margin, % Operating costs, SEK m Operating profit Share of Group’s operating profit Operating margin, % No. of employees
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2000 157.8 146.6 2.8% 44.4 30.3% -45.4 -1.0 -0.1% -0.7% 76
2001 2,262.8 2,223.4 27.3% 1,106.2 49.8% -877.8 228.4 23.4% 10.3% 1,372
2002 2,589.6 2,520.8 29.2% 1,200.5 47.6% -945.6 254.9 24.3% 10.1% 1,499
Management The Surgical Systems business area consists of three business units; surgical tables, surgical lights and ceiling service units for medi-tech equipment.The head of the business area is Heribert Ballhaus. Sales and marketing is coordinated by a global marketing organization, which is headed by Michael Rieder. Heribert Ballhaus
The Surgical Systems business area is the world-leading supplier of surgical workstations.The product range consists of surgical tables, surgical lights and ceiling service units for medi-tech equipment. Our first surgical table was sold more than 160 years ago. Our market share is around 40% for surgical tables and surgical lights, and about 15% for ceiling service units. The global market for these types of products is estimated at SEK 7.4 billion.We have a global marketing organization with sales in more than 100 countries.
Michael Rieder
Review of 2002
2002 was a good year for Surgical Systems. Orders received climbed by a total of 14.4%, equivalent to organic growth of 4.0%. The upward trend was particularly strong in North America and the UK, where orders received soared by 28.2% and 33.7% respectively. Performance in Germany was weak for the year as a whole. The rest of Western Europe, as well as Japan and a number of developing markets, reported strong volume growth. Operating profit also developed satisfactorily and increased by 11.6%. The slight decline in the operating margin can be attributed to the acquisition of Heræus Med. The acquisition of Heræus Med, completed during Q2 of 2002, gives Getinge a solid foundation on which to continue to strengthen the business area’s position. A comprehensive restructuring programme has begun. Once completed, it will mean that production currently run in Hanau, Germany will be moved to the business area’s existing production sites in Germany and France. Heræus Med will contribute around SEK 50 million to the operating profit in 2003. ALM’s surgical tables business was sold in Q4 to Fournitures Hospitalières, providing a small capital gain. Medica, the world’s largest health care exhibition, held in Germany, was the platform for a number of new product launches by the business area. These included a surgical table for ophthalmic surgery, and the Axcel and G8 surgical lights.
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The business area’s customers are surgeons and other medical staff at acute care hospitals around the world.
Our customers
Technological advances and the demographic trend towards an ageing population have resulted in an increasing number of surgical procedures being performed around the world. In the US alone, 24 million operations were performed in 2002 according to the FDA, and that figure is expected to rise by 5% annually. Operations are hospitals’ most important source of income and surgeons generally act to a great extent as both stipulators of equipment and decision-makers. With this in mind, it is not surprising that many hospitals allocate resources in order to create solutions that offer very high performance and efficiency. One such example of the technical advances in recent years is image guided surgery, which has considerably extended the scope of minimally-invasive surgery (keyhole surgery). This type of surgery has many benefits. Procedures can, for example, be performed faster and with more precision, plus the convalescent period for the patient is considerably reduced. The Surgical Systems business area’s customers are surgeons and other medical staff at acute care hospitals around the world. Financing of hospital activities is by public and private funding, or from funds raised by charities such as Caritas in Germany. The core of the business area’s product range is ergonomically designed surgical workstations adapted for the different surgical specializations with a maximum overview of the patient, plus integrated transport solutions for moving patients to and from operating rooms. To fulfil these criteria, three product lines are offered: surgical tables, surgical lights and ceiling service units for different types of monitoring equipment and delivery of medical gases. The surgical tables, which are available as mobile or fixed systems, have been developed for both general and specialized surgery and therefore contribute to increased efficiency in operating rooms by allowing a high flow of patients, and thereby efficient utilization of staff and other resources. Image guided surgery places exacting requirements on today’s surgical tables, and the business area is at the forefront in development of x-ray-transparent (screenable) tables with the AWIGS (Advanced Workplace for Image Guided Surgery) and VIWAS (Vascular Interventional Workplace for Advanced Surgery) product systems. Surgical lights are an integrated part of all operating rooms. The business area has a wide range of market-leading solutions, including a completely new technology that uses gas. This innovation delivers superior lighting, but with considerably lower energy consumption and heat emission than conventional lights. Ceiling service units are used to optimise ergonomics and the overview of the operating room. The service units support the meditech equipment required in the proximity of a surgical workstation, and deliver medical gases, such as those used in anaesthesia. The business area’s products in this product line are also among the absolute
best in the sector. In addition to our wide range of world-leading products for all lines, the business area provides an extensive technical service to quickly remedy any problems and faults that may arise, and thereby help hospital activities run with minimal disruptions.
The market
The global market for surgical tables, surgical lights, and ceilings service units is valued at SEK 7.4 billion, while the total market for all surgery-related products and services is many times greater. The market conditions remain healthy in the US , Japan and Western Europe and there is currently rapid development in Asia. The total market value for surgical tables is estimated at SEK 4.2 billion, surgical lights SEK 2.1 billion and ceiling service units SEK 1.1 billion. Market growth is around 5% for surgical tables and lights, whereas growth for ceiling service units is considerably higher at 1015%. The business area’s market share for the three business units is 42% for surgical tables, 39% for surgical lights and 17% for ceiling service units. Marketing organization As our customers have considerable expertise, professional competence and know-how is paramount for our business area’s marketing organization. Our sales teams are made up of highly qualified personnel, whose detailed knowledge of health care, surgery and technology is combined with a sound businesslike approach. The business area has its own sales and marketing companies in Germany, Belgium, the UK, Italy, France, Japan, China, Singapore and Brazil. Surgical Systems works successfully with the Infection Control business area to benefit from joint distribution in the US , Canada and Australia. For the rest of the world we have a network of more than 100 distributors and agents. Representatives of the business area often act in a purely consultative role. In Rastatt, Germany, we have established a Surgical Academy with a fully equipped operating room and sterilization unit, which together with the other facilities, such as a large exhibition hall and a large number of meeting rooms, acts as an international meeting place for surgeons from all over the world. The technical service we offer is of crucial importance and its aim is to always be able to offer our customer functional equipment in order to avoid disruption of their activities. Activities in 2002 A substantial number of new or improved products were launched during the year. AWIGS, the advanced system for image guided surgery, can now be combined with tomography scanners from GE and Siemens. An agreement was signed with Siemens in October that means the business area can now offer AWIGS to its customers with
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tomography scanners from Siemens and General Electric. A new surgical table for ophthalmic surgery, featuring a fully motorized cranial support, was launched at Medica held in Germany. The increasingly clear trend towards obesity among the population in certain markets has obvious consequences for surgical procedures. In 2002 the business area launched a surgical table – upper weight limit 360 kg – especially designed for overweight patients. Two new products were launched in 2002 for the surgical lights product line. Axcel is a new surgical light for the expanding polyclinic surgery market. The world’s first surgical light to use gas, called G8, was also launched. This world innovation is currently the most advanced lighting product available for use in surgical procedures. The ceiling service units product line also gained a new addition in 2002. The launch of Modulis has given the business area a worldclass service unit.
also means that diagnostics becomes an integrated part of the surgical procedure. Increasingly, hospitals are choosing to purchase from suppliers that can provide complete product systems, which can be tailored to specific needs and rapidly adapted for various types of surgical procedures. Competition between different clinics and hospitals is getting tougher, and investments are being concentrated on profitable medi-tech equipment that ensures optimal results from operations.
Trends The demographic trend towards a growing percentage of elderly people in the population is driving demand for cost-effective health care. Today’s health care is therefore characterised by requirements for efficiency-enhancing measures. This need is driving development forwards in terms of technology and organization. A clear example is the rise of image guided surgery, which has enabled cost-effective, minimally-invasive surgical procedures. Due to this development, more operations can be carried out polyclinically, with rapid rehabilitation resulting in considerable cost savings. Image guided surgery
Competitors The business area’s competitors include Mizuho (Japan), Trumpf (Germany) and Steris (USA) for surgical tables, Berchtold (Germany) and Steris for surgical lights, and Dräger (Germany) and Kreuzer (Germany) for ceiling service units. Several of our competitors have strong international distribution networks and good, innovative products, but lack Getinge’s broad and integrated product range.
Product positioning The business area’s products and services are among the best on the market and are strategically positioned as innovative, processenhancing solutions for complete systems of surgical workstations. Prices are determined by the possibilities of the products, and the benefits our products and systems give the customer.
Prioritised areas for the business area’s product development are solutions for endoscopy and image guided surgery, where demand is greatest.
Surgical System’s production will be concentrated at Rastatt, Germany and Ardon, France, during 2003.
Product development
The development of new products and systems is central for Surgical Systems, just as it is for the Group’s other business areas. Surgical Systems is the business area in the Getinge Group with the highest technical content. Product development for surgical tables is concentrated at Rastatt, Germany, and at Ardon, France, for surgical lights and ceiling service units. All development takes place in close collaboration with our customers and marketing companies, which leads to reality-adapted product development that is in line with the changes occurring in the market. Prioritised areas include products adapted for endoscopy and image guided surgery, where demand is greatest. The most important aspects of newly developed products are that they promote sound ergonomics for all the operating room staff, give a good overview of patients, provide satisfactory patient comfort and actively support the optimal utilization of the surgical workstation. By meeting these criteria, products positively contribute to the overall economy of the hospital.
trated at our plant in Rastatt, Germany. This restructuring process is expected to be fully implemented in 2003. Once completed, it will lead to considerable improvements in the business area’s competitiveness. In 2002 Getinge signed an agreement for the sale of the surgical table business that was included in the acquisition of ALM. The buyer of the business is the French company, Fournitures Hospitalières. After all measures have been carried out, the business area will have a clear and refined manufacturing structure with table production concentrated at Rastatt and production of surgical lights and ceiling service units at Ardon.
Logistics
With around 60% of sales in Western Europe, the business area’s production facilities are strategically placed for several of its key markets. Deliveries to all customers are planned by the business area, but actual shipment is handled by external transport companies. The aim is to always provide rapid and correct deliveries, regardless of the customer’s location.
Production
Heræus Med, acquired in Q2 2002, is currently undergoing an extensive rationalization programme. The factory in Hanau, Germany, will be closed and production of surgical lights and ceiling service units transferred to Ardon, France. All other production will be concen-
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Quality
The critical nature of the business area’s products, means there is a clear focus on quality. The quality system covers functions such as development, production, delivery and service, and complies with the requirements for medi-tech products (EN46001:1996, DIN EN ISO 13485:2001 and DIN EN ISO 9001:1994).
2003 – activities for continued expansion
Sales and marketing In 2003 the synergies from a joint, global sales organization for all the business area’s products will become apparent, and the potential for selling complete installations will be considerably greater. The developing countries of Asia and the Japanese market have great prospects for expansion, and will be focused on in 2003. The American market also offers good prospects for growth in 2003, above all through the launch of products that are new to this market.
Technology Work on developing new solutions for operating rooms will be vigorously continued in 2003. Polyclinical operations will become more common, especially in Europe, and differentiation between major and minor procedures will lead to a corresponding differentiation in product demand. In 2003 the product range will be adapted to address this trend. Continued expansion During the year, the business area will assess a number of acquisition possibilities in closely related product areas in order to further broaden and strengthen the business area’s position.
SURGICAL SYSTEMS: SUMMARY WORLD MARKET Product segment Surgical Tables Value SEK 4,200 m Growth, % 5 Getinge’s market share, % 42
Surgical Lights SEK 2,100 m 5 39
CSU* SEK 1,100 m 10-15 17
MARKET TRENDS Orders received per market 2002 2001 USA & Canada 548.7 427.9 UK 155.5 116.3 Germany 580.5 590.8 Rest of Western Europe 733.6 620.6 Rest of the world 571.3 507.2 Business area total 2,589.6 2,262.8 Changes adjusted for acquisitions and currency-related effects
Change 28.2% 33.7% -1.7% 18.2% 12.6% 14.4% 4.0%
SALES PER MARKET Western Europe: USA & Canada: Asia & Australia: Rest of the World:
58% 20% 16% 6%
SALES PER CUSTOMER SEGMENT Acute health care: 100%
DISTRIBUTION Own sales companies: Distributors:
70% 30%
*Ceiling Service Units
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PRODUCT OVERVIEW SURGICAL SYSTEMS
AWIGS & VIWAS – LEADING-EDGE SURGICAL TECHNOLOGY AWIGS and VIWAS unify diagnosis, operations and result monitoring – for the first time ever
During operations a matter of seconds can be crucial. Procedures can now be carried out faster, safer and with less stress, due to the new, integrated surgical workstations from Getinge Surgical Systems. AWIGS is a unique product that enables diagnosis, operations and monitoring without the risks associated with the transfer of patients. AWIGS stands for Advanced Workplace for Image Guided Surgery. The AWIGS system comprises of a surgical table and a tomography scanner and thus combines the two disciplines of surgery and radiology. There are many applications: AWIGS can be used for neurosurgery and orthopaedics and for general surgery and traumatology, as well as face and jaw surgery. AWIGS is an innovation for operating rooms as well as emergency departments. AWIGS consists of a movable surgical table with two support pillars and offers the possibility to manoeuvre the entire screen-
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able table into the integrated tomography scanner. Studies show that patients are moved as many as nine times from arrival at the hospital to the completion of the operation. This not only means considerable physical strain for the staff, but can also worsen the patient’s condition. Diagnostic equipment, emergency rooms and operating rooms are often so far from each other that valuable time is lost. The patient transport system from AWIGS guarantees more effective logistics in and around operating rooms: the speciallly developed carrier can take heavy weight patients and is motorized. The patient is carefully moved from the carrier, which can also function as a surgical table for immediate use, into the tomography scanner. If an operation is necessary right away, it can start without delay on the integrated surgical table. AWIGS has not only been designed
with acute care in mind, but also scheduled surgery. The aim is to enhance efficiency and improve the quality of care. Its sister product, VIWAS, (Vascular Interventional Workplace for Advanced Surgery) is compatible with AWIGS and has been developed for surgery, primarily within the heart and vascular area. The imaging system can be moved to the table and used. Operations using VIWAS can be carried out with continuous imaging in real-time. VIWAS is sold as a separate system, but in combination with the AWIGS system, it is particularly suitable as a complete concept for image guided surgery that offers all available imaging processes. AWIGS and VIWAS are already being used successfully at clinics in Germany, Switzerland, Austria, Belgium and Japan.
SURGICAL TABLES
Getinge’s surgical tables are established worldwide via a broad product range and unique functionality for general surgery. One of the biggest success factors is the possibility to customize solutions for different types of specialized surgery, from opthamology to orthopaedics. Surgical tables are always heightadjustable for good ergonomics.There are also extensive options for adaptation to various types of surgery in order to create an environment in the operating room that is as efficient and ergonomic as possible. Getinge’s systems for surgical tables have been developed to provide maximised efficiency
in terms of utilization of the operating room and flexibility for various types of specialized surgery. The surgical tables consist of a support pillar, which is fixed to the floor of the operating room, and a movable top section. While one patient undergoes an operation, the next patient can be prepared for surgery.When an operation is completed, the next patient can be taken in as soon as the operating room has been cleaned. In this way, the hospital’s resources as utilized to the maximum.
SURGICAL LIGHTS
There are two main types of surgical light: one of the solutions is to illuminate the entire surgical working area with a single light source. This form of surgical light is preferred in the Asian and North American markets, as well as in several European countries. The latest lights of this type are equipped with cameras for documentation and detailed imaging. The other type of lighting
solution consists of several lights, which produce an optimal lighting situation in the operating room.This technology is preferred above all in a large number of European countries and is also becoming more popular in the Japanese market.This type of light can also be fitted with cameras for documentation and detailed imaging.
CEILING SERVICE UNITS
Ceiling service units are used both in intensive care and operating rooms. In intensive care they are used to hold technical equipment that must be in close proximity to the patient. Medical gases and power supply can be inte-
grated in the ceiling service units. Ceiling service units bring these aids within constant reach when needed, but allow them to be simply moved out of the way when not in use.
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Business Area Infection Control
FIVE-YEAR SUMMARY Infection Control Orders received, SEK m Net sales Share of Group’s net sales, % Gross profit Gross margin, % Operating costs, SEK m Operating profit Share of Group’s operating profit Operating margin, % No. of employees
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1998 2,524.1 2,615.7 60.2% 1,028.8 39.3% -665.8 363.0 55.6% 13.9% 2,358
1999 2,884.5 2,811.1 57.5% 1,084.6 38.6% -719.3 365.4 52.8% 13.0% 2,371
2000 2,887.0 2,934.6 55.9% 1,142.7 35.7% -821.9 368.5 52.9% 12.6% 2,327
2001 3,404.1 3,204.3 39.3% 1,142.7 35.7% -821.9 320.8 32.9% 10.0% 2,312
2002 3,440.3 3,359.3 38.9% 1,215.8 36.2 -909.9 305.9 29.1% 9.1% 2,364
Management The Infection Control business area consists of two business units: sterilization and disinfection.The head of product development and production is Mats Ottosson. Sales and marketing is coordinated by a global marketing organization, which is headed by Christophe Hammer. Mats Ottosson
The Infection Control business area is the world’s leading supplier of sterilizers and disinfectors for the hospital market and the pharmaceutical industry. We sold our first sterilizer in 1932, and today we offer our customers the widest and most sophisticated range of products and services on the market. Our market share is around 25% of the global market, which is estimated at SEK 10 billion. We have a global marketing organization with sales in more than 80 countries.
Christophe Hammer
Review of 2002
2002 was a year which saw growth in line with our aims – 4.8% – for the business area as a whole. In the US unprofitable product ranges have been phased out, which has had a short-term negative effect on orders received, but will have long-term positive effects on profitability. Despite the lower order intake, underlying demand is healthy in the American market. There has been a steady upward trend in the Western European markets during the year with good growth in Southern Europe, Scandinavia and the UK. However, in Germany and the Benelux countries, the trend was weaker. The organization in the US went through major changes in 2002. A completely new management group was established midway through the year, and a broad programme of activities was initiated that includes the phasing out of unprofitable product segments, more efficient logistics, cost adaptations and a radical restructuring of production. Taken together, these measures will lead to considerably improved profit from the American market in 2003. The World Sterilizer Project – the business area’s structural programme for more cost-effective production – was in all important respects completed in 2002 and will have a considerable positive effect on profit in 2003. Work aimed at making production in the US more efficient will proceed in 2003 and is expected to have a positive impact on profit in both 2003 and 2004.
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The business area’s customers are involved in health care, industry and the research sector.The common element among these different customers is a need to sterilize and disinfect critical goods.
Our customers
The market
The Infection Control business area has two main customer categories: the care sector and industry.
The global market for the business area is valued at SEK 10 billion, with 6.5 billion for sterilization equipment and 3.5 for disinfection products. Annual market growth is estimated at 4-5%. Growth in the disinfection business unit is somewhat higher than in sterilization. Getinge’s total market share is slightly more than 25%. Growth is occurring principally in technical service and the aftermarket. Among our customer segments, the industry side has higher growth than health care and long-term care. However, acute health care remains our biggest customer segment, accounting for 60% of total sales. The industry side accounts for 30% and long-term care for 10%.
Acute health care and long-term care Every year, hospital-acquired infections cause a large number of deaths and untold human suffering. These infections also mean huge costs, because of consequences such as prolonged care periods and increases in treatment using antibiotics. An infection that would be a minor matter for someone who is healthy can cause serious complications for a sick or elderly person. More patients, resistant bacteria types and fewer resources within the care sector mean that the problem is growing. Getinge’s systems aim to prevent contact infections, i.e. that bacteria or viruses are transferred to patients and staff via objects such as surgical and dental instruments, bedpans and hand basins. We thus contribute in an active way to breaking the infectionroute. Our products and services also enable our customers to become more efficient in their own activities and increase the degree of control over the flow of sterile and disinfected goods. The two processes used for critical goods are sterilization and disinfection. Sterilization kills both active and spore-creating microorganisms using steam under pressure or gas. Instruments that require sterilization include surgical and dental instruments as well as instruments for various types of care. Disinfection kills active microorganisms, but not spore-creating types. Goods that need to be disinfected include bedpans, urine bottles and kidney-dishes. The business area’s systems consist of flusher and washer disinfectors for cleaning and disinfection, autoclaves for sterilization, and tracking and transport solutions for good and safe logistics, as well as technical service and support. Flusher disinfectors are used for bedpans and urine bottles on nursing wards. Washer disinfectors are intended for the cleaning and disinfection of surgical instruments. Instruments and utensils that are to be sterile are sterilized in autoclaves. Today there is an increasing need to be able to plan, control and document the handling of circulating goods. We have therefore developed software (T-DOC) that enables the hospital to control its sterile goods at all times, and therefore achieve effective planning of its activities. There are other areas that are of utmost importance to our customers; the technical service that we provide (a sterilization supply department must be in continual use) and the consulting services we can offer, for example in the planning of new sterile supply deparments. Industry There is also a need for disinfectors and sterilizers in research and production, in areas such as the pharmaceutical industry, private and public research facilities, universities and laboratories. Needs regarding capacity and security levels vary considerably from customer to customer, and therefore each system is tailored to meet specific customer’s unique requirements.
A global marketing organization Our basic strategy includes a strong ambition to be close to our customers. Merely by being in continuous contact, we can understand their real needs and can thereby adapt and develop our own activities. As a consequence of this strategic decision, the vast majority of our sales are made through wholly-owned sales companies, which can bring back important knowledge to our development and production facilities. Getinge is represented by its own sales companies in 18 markets, which account for 90% of our sales. Two export offices and 65 distributors cover the rest of the world. Our 200 sales representatives and 600 service technicians give us an important and direct interface with our customers. In 2002 the work to concentrate marketing on a few brands was completed, as was the establishment of a homogeneous and global marketing organization. Over 90% of the business area’s invoiced sales are now made under the Getinge brand, and marketing resources are being focused to make this brand even stronger. In the US Infection Control and Surgical Systems have a joint marketing and sales organization. Trends There are some clear trends in the infection control market. We see a definite trend towards centralization. The number of installations will be fewer, while the size and complexity or each installation will increase. The new EU standards for sterilizers and disinfectors will drive the market forwards, as obsolete equipment must be replaced. Gradually, as more and more manufacturers meet the new standards, it is possible that customers will perceive little difference between the various products on the market. This, together with the fact that hospitals are joining together in different constellations to make purchasing more efficient, is leading to increased downward pressure on prices. In order to address these trends in an emphatic way, we have increased our focus on system sales, so that we can clearly differentiate ourselves from our competitors. The measures that have been taken to heighten the efficiency of our manufacturing structure have already led to greater competitiveness. In future we will have a clearer focus on services and knowledge in order to meet our customers’ total needs regarding infection control.
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Product positioning Products from Getinge are among the absolute best on the market in terms of function, quality and safety. However, it is being a complete system supplier with a strong focus on technical service and other services that is the decisive factor in selecting Getinge as a supplier. Our products are therefore positioned in the upper price segment, although adaptations to local conditions must always be made. Competitors There is really only one company, Steris of the US , that can measure up to Getinge in terms of size, broad product range and distribution network. The company is market-leading in North America regarding customers in health care, with a market share in the industry segment comparable to Getinge’s. Of Steris’ total sales, around 85% are to customers in North America. Other competitors in sterilization are Belimed in Switzerland and MMM in Germany, Johnson & Johnson in the US , and Sakura in Japan. Fedegari of Italy is the biggest competitor in the industry segment. In the disinfection product line, Miele and Meiko of Germany are the main competitors, along with Steris. Research and development
The development resources of the Infection Control business area are organized around the two overall product lines: sterilization products and disinfection products. Both organizations develop products for the global market.
Product development will be focused on areas such as effective low-temperature sterilization, point-of-use applications, and solutions that improve logistics and ergonomics.
Sterilization Development of the business area’s sterilization products is mainly carried out in Sweden. The principal resources for development work are located in Getinge, from where all development work is coordinated. The products are aimed at health care and the pharmaceutical industry. In recent years, work has focused on the development of products that are cost-effective to produce and thereby strengthen the business area’s competitiveness. The clearest example of this work is the World Sterilizer Project, in which standardization and modularisation of incorporated components unifies cost-effectiveness with high flexibility for our customers. To add further support to efforts in this area we carried out a reorganization of our development resources during the year, and now have a faster throughput rate for individual development projects. This means we will get our new products onto the market faster. Our world sterilizer was successfully launched in 2002, and in 2003 we will introduce a new product range of autoclaves for the dental market. The autoclaves have been developed according to the same principles of cost-effectiveness and flexibility. We have also completed development of a new range of loading equipment – a clear example of our striving to develop systems in future that not only provide primary sterilization, but also improve logistics and the working environment through intelligent ergonomic solutions. Disinfection Development of disinfection products – primarily flusher and wash-
Production of sterilization products in 2002 was characterised by major changes in the global manufacturing structure with an overall aim to make the structure more efficient and thereby improve our competitiveness.
er disinfectors plus systems for loading and unloading goods in large washer disinfectors – is carried out at the business area’s facilities in Växjö. Products are aimed at health care, long-term care and the pharmaceutical industry. During the year development work on a totally new generation of flusher disinfectors for long-term care institutions was completed. These will be launched in Q1 of 2003. This new generation combines cost-effective production and highly efficient disinfection with completely new design possibilities. Our assessment is that this new product line will strengthen our position in terms of both market shares and margins. A project was also started in 2002 that aims to streamline production of our biggest washer disinfectors.
Production
Production of sterilization products in 2002 was characterised by major changes in the global manufacturing structure with an overall aim to make the structure more efficient and thereby improve our competitiveness. With the launch of the world sterilizer, we have got a product range of autoclaves for hospitals that is based on a common platform. This has made it possible to concentrate all essential production at our facilities in Getinge. During the year we wound up production in France and considerably reduced it in the US . This reshaping of the business area’s manufacturing structure has proceeded completely according to plan and has required relatively
small investments in machine capacity to meet the increased workload at the main plant in Getinge. Viewed over the year, production in Getinge increased by 45%. The overall production strategy means that all manufacturing is done at the main plant in Getinge, which generates cost benefits from centralization. At the same time, other units are being transformed into assembly plants for parts supplied from Getinge. This arrangement improves our cost structure, while also enabling us to make close-to-the-customer market adaptations at the assembly plants and ensure that our shipments are cost-effective. Assembly plants are currently located in Australia, UK, Germany, South Africa and the US . Two other plants produce sterilization equipment: the strongly niche-oriented facilities in Skärhamn and Denmark. The former makes autoclaves for the dental market, and the latter units that generate extremely pure water and extremely pure steam for customers in industry. During the year we also analysed and defined our core activities in production. This review has led to the outsourcing of certain elements of our manufacturing to various subcontractors. Production of the range of disinfection products is carried out in Växjö, as well as Germany and France. The focus is on strong adaptation of thin sheet metal, welding and final assembly. External suppliers are used for sub-assembly and surface finishing. The proportion of external manufacturing will grow in future as production volumes increase, in order to optimise our resources and develop our
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competence within our core areas. Over the next few years, the degree of automation will gradually increase in sheet metal-work and welding, which will further strengthen the business area’s competitiveness.
Logistics
The business area has just started a project that aims to make further improvements in competitiveness by bringing down costs for distribution and administration and reducing tied up capital. The results of this work will also improve our delivery precision to customers and enable better control of complex joint deliveries that contain products from several of the business area’s manufacturing plants. The project is expected to run throughout 2003 and into 2004.
as our knowledge exchange at the Getinge Academy, and learn something more every day about our customer’s needs and wishes. Their situations are also constantly changing and this creates new requirements that lead to new opportunities for us as a supplier. The business area’s manufacturing plants are currently certified in accordance with ISO 9001, EN 460001 and Annex 2 of the Medical Device Directive (93/42 EEC). A number of internal measurements are done in order to follow – and if required, correct – the development of our customer-supplier relations.
2003 – Activities for increasing competitiveness
A number of measures will be taken in 2003 to further strengthen the business area’s competitiveness and improve our range of products and services for customers. A critical review of our subcontractors with a clear aim to reduce their number. Implement a feasibility study on the possibility of opening an assembly plant in China. Strengthen our range of products for low-temperature sterilization. Continue the efficiency-enhancement of our global manufacturing structure. Continue work to modularise assembly processes. Focus on the customer benefits of complete system solutions for various customer segments.
• Quality – working for continuous improvement
Our products are a central and critical part of our customers’ activities. Great efforts are therefore made to ensure that all phases, from development work to delivery, are done in a way that is controlled and repeatable. Design, choice of material and production methods shall ensure that our products work optimally. The selection of subcontractors is also made with great care. However, product quality is just one of the quality parameters that we use. By being close to our customers we can continuously develop the service we offer as well
• • • • •
INFECTION CONTROL: SUMMARY WORLD MARKET Product segment Value Growth, % Getinge’s market share, %
MARKET TRENDS Orders received per market Western Europe USA & Canada Asia & Australia Rest of the world Business area total Changes adjusted for acquisitions and
Sterilization SEK 6,500 m 4 24
2002 2001 1,546.1 1,465.1 1,346.3 1,451.1 368.4 325.7 179.5 162.2 3,440.3 3,404.1 currency-related effects
Disinfection SEK 3,500 m 5 27
Change 5.5% -7.2% 13.1% 10.7% 1.1% 3.9%
NET SALES PER MARKET Western Europe:: USA & Canada: Asia & Australia: Rest of the world:
46% 38% 10% 6%
NET SALES PER CUSTOMER SEGMENT Acute health care: 60 % Long-term care: 10 % Industry 30 %
DISTRIBUTION Own sales companies: Distributors:
90 % 10 %
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PRODUCT OVERVIEW INFECTION CONTROL
A WELL-THOUGHT-OUT CONCEPT With equipment installed in over 100 countries on six continents, Getinge is the world’s leading supplier of sterilizers and washer disinfectors to hospitals, the pharmaceutical industry and laboratories. The Infection Control business area is represented in over 80 countries. Due to this coverage we can offer rapid support to all our customers around the world. The basis of all the business area’s activities is sound knowledge of infection control and health care. Using this knowledge we develop our disinfectors and
sterilizers, our documentation systems, and also our services such as training and technical service. Our global success depends to a large extent on our constant striving to supply well-thought-out, high-quality systems that are competitive to the highest degree regarding aspects such as function, operational reliability, cost-effectiveness, ergonomics, environmental considerations and customer satisfaction.
COMPLETE SYSTEMS A well-thought-out flow system is required if goods handling at a hospital is to achieve maximum safety and efficiency. Getinge has an internal team of design and planning experts, who devise solutions for sterilization centres and their flow systems. These systems, which have been tested over decades with good results worldwide, provide the greatest economic utilization of the hospital’s resources, as well as good infection control. Getinge has developed special computerized guidelines relating to the design and calculation of capacity for vari-
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ous types of sterilization units. The detailed calculations are based on the number of operations, polyclinical patients, hospital beds, etc. In this way, it is possible to adjust the number and size of autoclaves, washer disinfectors and other equipment to the needs of each individual hospital. Plans are created using a CAD system, which can generate 3-D visualizations that make the layout of the plan clearer for the end user. Corresponding systems have been developed for the laboratory and pharmaceutical industry customer segments.
FLUSHER AND WASHER DISINFECTORS GE 606
GE 606 is a flusher disinfector for bedpans and urine bottles used in long-term care.The unique toploading version has an ergonomic design and many applications.
1345
GE 4656
GE 8666
Lancer PCM
1345 is a table-top machine for surgical instruments intended for use at small clinics and dental surgeries.
GE 4656 is a medium-size washer disinfector with manual loading for surgical instruments, laboratory glassware, etc. It offers large capacity in a compact format and can be used just about anywhere.
GE 8666 is a large washer disinfector with manual or automatic loading. Mainly used for surgical instruments, laboratory and pharmaceutical industry goods in applications where automatic loading and unloading are desirable for maximum efficiency.
Lancer PCM – a range of customized washer disinfectors for laboratories and industry – customer segments that demand exceptionally high standards for cleanness and quality control.
HS 69 Lab
Industrial autoclaves
HS 69 Lab is intended for laboratories and research institutes. A very competitive standard machine with many standard options that cover most of the needs of laboratories and universities.
Specially adapted production autoclaves for the pharmaceutical industry and high-risk laboratories. Every machine is designed according to the customer’s specific situation and needs.
AGS
Technical service
STERILIZERS HS 11 / HS 22
HS 33
HS 11/HS 22 is a table-top autoclave for small clinics and dental surgeries. A unique autoclave with fast processing and safe function suitable for all types of sterile goods.
HS 33 is a small autoclave for clinics, surgical departments and laboratories. A flexible autoclave with fast processing and many applications.
HS 66
HS 66 is a medium-size autoclave for health care. A highly flexible machine with large capacity and many variants to cover all types of needs, installation variables and loading procedures (manual or automatic).
ACCESSORIES T-DOC
Billy
SL 60
T-DOC documentation and tracking system for increased efficiency and quality assurance in health care.
Billy is an ergonomic, heightadjustable utensil trolley for Getinge’s washer disinfectors and autoclaves.
SL 60 is a new automatic loader/unloader version for Getinge’s HS 66 autoclaves.
AGS is a unique automatic utensil system for Getinge’s GE 8666 washer disinfector.
With good technical service coverage, Getinge ensures customers are satisfied.
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Getinge in society
As a globally active company, Getinge has considerable responsibilities regarding several different groups and issues:
• • • • • •
Our customers, who need our products and services in order to run their own activities Our employees, who have a right to good working conditions and opportunities to develop Our suppliers and their employees The environment, in which we all live and on which we all depend Our shareholders, who want to see a sound and growing company Society in general
We started long-term work during the year that aims to increase awareness and knowledge of these issues within the company. The clear objectives are to be an attractive company for our shareholders, attract skilled and dynamic staff, and ensure that our environmental impact is as small as possible
A company that is growing and changing rapidly
Getinge’s development has been very positive since it became a listed company in 1993. The number of employees has grown from 1,000 to 5,600. In 1993 some 20 companies were part of the group, but by the end of 2002 that number had risen to about 70. A considerable part of this growth is due to the large number of strategic acquisitions made by the Group. These include Lancer (1994), the Arjo merger (1995), Castle (1996), Maquet and ALM (2000) and Heraeus (2002). The Getinge Group currently has production at 20 factories in nine countries, runs active sales operations in over 100 countries, and is represented in all parts of the world. Opportunities and challenges The dynamic situation of a global and expansive business offers not only considerable business opportunities, but also considerable responsibilities and challenges. We started several initiatives in 2002 aimed at creating an even clearer common corporate culture. A new group-wide magazine will be published during 2003 in order to give Group management the means to communicate directly with all employees. The Group is also working long-term to strengthen Getinge’s corporate identity. Ethical principles of the Getinge Group Working on ethical issues is a continuous task. We established a number of principles in 2002 to guide this work in the future: We work on the basis that all people have equal rights and equal worth. With a focus on customers, we will constantly develop through everyone’s commitment, involvement and cooperation. Our attitude shall be based on openness, honesty and a serious approach.
• • • 44
•
We follow the relevant codes of conduct for social responsibility in order to regulate the company’s and staff’s conduct, both internally and externally. This conduct complies with regulations, rules and legislation concerning human rights, equality, diversity, working environment, business ethics, etc.
Our customers
Obviously, one of our most important interested parties is our customers. Getinge’s products and services contribute to considerable improvements in the working environment – above all in care of the elderly and disabled – provide efficient and safe handling of sterile and disinfected goods, and create an ergonomic and efficient working environment in operating rooms. The continuous development and improvement of our products and services for our customers is one of the most important ways that Getinge can contribute to an easier situation for both patients and employees in the care sector. Customer contacts and customer surveys create new knowledge Our customers are one of our most important sources of knowledge. Every day there is a large number of contacts between Getinge’s staff and our customers. These meetings often highlight new needs and new knowledge, which can be utilized to improve our products and services. It is only through an understanding of our customers’ everyday work that we can make it easier for them and create more efficient solutions. The Group initiated a programme of customer surveys in 2002 to provide a structured way of gathering information on what our customers think about our products and services, and what they would like to see us improve even more.
Product development The knowledge we obtain from our customers through daily contacts and customer surveys is used in our product development. Furthermore, selected customers act as reference individuals in all highly significant development projects and contribute in a decisive way to ensure the products that reach the market really are equal to their tasks.
Environmental work at Getinge – environmental policy
Our ambition is to be the leading company in the sectors in which we are active. This aim to be the leading company is also very clear in our strategic long-term environmental work and daily working routines. The overall environmental objective is to minimize products' impact on the environment throughout their life cycles, by utilizing resources efficiently in product development, manufacturing processes and in operation. In practice this means:
• • • •
Environmental considerations are instilled right from the start in our development activities. The use of lifecycle analyses to understand our products' effects on the environment and optimise the balance between environmental impact and product performance. Continual improvement of our processes and their efficiency. Reduced use of raw materials in all processes and promotion of
• • •
recycling and the use of recycled materials where it can be justified for environmental, technical and financial reasons. Increased efficiency regarding energy consumption, as well as sound handling of natural resources within the entire business. A good working environment that promotes safety for all our employees and protects their health. Compliance with, and where suitable, exceeding of, requirements in all applicable environmental legislation, regulations and guidelines. Local legal requirements will be regarded as a minimum level.
Environmental management systems The Group’s overall objective is that all production plants shall be certified in accordance with ISO 14001 and/or EMAS at the latest in 2004. This work will proceed in 2003, when several more production facilities will be certified. Day-to-day environmental work The Group's products are in many respects complex and contain many different materials and components. In all development projects currently in progress, the product is carefully analysed in order to maximise its recyclability. Recycling stations for manufacturingrelated waste products are now installed at all production companies. Discharges from the Group's various finishing facilities are far below permitted levels. Wastewater is purified to a better standard than
The Getinge Group shall actively contribute towards a better environment and increased welfare as well as promote development of a sustainable society.
before it was used. Getinge applies recommended routines for the handling of new chemicals in production. Old and environmentallyhazardous chemicals are gradually replaced in order to meet new environmental regulations. To sum up, Getinge works from the standpoint of creating the greatest possible benefit at the lowest possible cost from the financial perspectives of both the company and society. Getinge continues to work for a sound holistic view of products and environmental effectiveness. Getinge's personnel
Creativity, system solutions, closeness to the customer and good profitability are key terms within Getinge. To go from intent to action demands committed and competent staff, which in turn presupposes continual further education and learning in working life that develops each employee individually and the Getinge Group as a whole. Recruitment The customers we meet include not only representatives for hospital's, care institution's and industry's purchasing and management functions, but also patients and residents, and hospital staff and caregivers of all types. It is in these meetings, face to face, that business is lost or won. A natural consequence is that matters affecting recruiting, further training and staff development must mainly be run locally on the basis of local conditions, but within the framework of overall policies and ground rules.
Competence development and communication The Getinge Group is decentralized to a large extent, and decisions are made close to the daily work. Short decision-making paths and a flat organization lead to a dynamic working environment with great opportunities for individual employees to realize their ambitions and ideas. The valuation principle within Getinge is based on respect for, and trust in, each individual. The underlying view is that taking responsibility leads to participation and commitment. As a medi-tech company, Getinge is to a large degree dependent on capital that stems from confidence in the company. Professional communication is a prerequisite for building up, maintaining and improving this capital. Information is therefore an important control instrument and a manager’s responsibility at all levels of the Group. Management and staff have a collective responsibility for continuously developing competence as well as deepening and supporting team spirit in the organization. Employees are offered regular opportunities for personal development. The Getinge and Maquet Academies are run within the Group and between 2,000-3,000 customers, agents and employees participated in various types of courses in 2002. The Getinge Group also has contacts with universities and colleges in order to bring about an exchange of knowledge and experience that is beneficial for both parties. This work takes a number of different forms including a large number of academic papers written within the framework of the Getinge Group’s activities.
VERKSAMHETSBERÄTTELSE
PERSONNEL – AN OVERVIEW
Total number of employees on 31 December Number of employees in Sweden on 31 December Added value per employee in the financial year, SEK Number of men employed, % Number of women employed, % Number of employees aged 20-30, % Number of employees aged 31-40, % Number of employees aged 41-50, % Number of employees aged 51-60, % Number of employees aged 61-70, % Number of employees per business area, %: Infection Control Extended Care Surgical Systems Geographical distribution of employees, %: Sweden Rest of Nordic countries Rest of Western Europe North America Eastern Europe Asia & Australia Africa
2002 5,556 877 720,000 79 21 16 35 28 18 2 39 30 31 16 1 52 27 1 2 1
2001 5,330 820 690,000 80 20 16 36 28 17 3 44 30 26 16 1 55 24 1 2 1
47
Business processes
Efficient logistics with direct deliveries to customers.
Strategic supplier work.
Supplier
Standardized, global IT support. Centralization of administration.
Factory
Marketing company
Customer
The Getinge Group’s improved cash flow is the result of long-term, target-oriented work that encompasses all the Group’s business processes.
duction planning, order confirmation and invoicing as efficient as possible. This project is proceeding according to plan and the first sub-project will be completed in 2003.
Strategic selection of suppliers and rational production
Improved logistics function
Internal production has been refined to critical and often knowledgeintensive core areas, whereas the rest of production has been outsourced to subcontractors. At the same time, the number of subcontractors has been reduced and the Group has established central purchasing functions at the business area level. Production has also been rationalized through concentration at fewer and specialized units, and significant economies of scale have thereby been achieved.
Logistics projects are under way in all business areas with the objective to eliminate all intermediate storage at the marketing companies by establishing direct deliveries from factory to end customer. This work is proceeding according to plan and in its final form will also mean centralized and cost-optimised administration.
More efficient administrative processes between factories and marketing companies
The overall ambition for communication between factories and marketing companies is to create a common, standardized and integrated platform to make this work as cost-effective and rationalized as possible. Consequently, 2002 saw the establishing of a group-wide IT function, which in cooperation with the business areas started on the task of streamlining the administrative processes between factories and marketing companies with an aim to makes routines such as pro-
48
Deeper and more frequent administrative contacts.
Deepened customer relations
The Group has also worked very actively to improve contacts with our customers, so that our deliveries can be managed in a way that is ideal from the customer’s point of view. This work has involved frequent adjustments and the result has been a considerable improvement in our delivery precision, which has meant a reduction in the number of days for outstanding receivables. The combined effect of these measures led to a considerable improvement in the Group’s cash flow in 2002. There will be an intensified focus in 2003 on improving cash flow through continued work on optimising our business processes.
Financial information
Directors’ report ................................................... Financial risk management ................................... Proposed allocation of profits ............................ Consolidated income statement ........................ Consolidated balance sheet ............................... Consolidated cash flow statement ................... Accounting principles............................................ Notes to the consolidated accounts................. Income statement, Parent company .................. Balance sheet, Parent company ......................... Cash flow statement, Parent company ............. Notes to the Parent company accounts .......... Auditors’ report..................................................... The Board................................................................ Group management and auditors ...................... Addresses.................................................................
50 52 53 54 55 56 57 58 69 70 71 72 77 78 80 82
Directors’ report
The Getinge Group is active in three business areas. Infection Control sells disinfection and sterlization equipment that prevent the emergence and spread of diseases in the health care and long-term care sectors and in the pharmaceutical and food industries. Extended Care sells systems for hygiene and lifting for the elderly and disabled and products to prevent and treat pressure sores. Surgical Systems sells complete systems for surgical workstations, operating theatres and specialist clinics.
other production was to be moved to Rastatt, Germany. Structural costs for moving these production facilities amounts to SEK 257 million (of which SEK 245 million affects cash flow). Heraeus Med Tec has increased the goodwill by SEK 355 million. Of the net debt increase as a result of the acquisition amounting to around SEK 300 million, SEK 165 million is for acquisition costs of shares and SEK 130 million is for pension liabilities held by Heraeus upon acquisition. There is no conditional purchase sum.
Orders received Orders received by the Getinge Group climbed by 4.7% and reached SEK 8,772.9 million (8,375.7 m). Adjusted for acquisitions and exchange rate fluctuations, orders received were up by 4.2%.
Structural reserves At the end of 2002, the restructuring reserves stood at SEK 253.5 million (148.8 m). The remaining amount is for the largest part for the continued restructuring of Haraeus Med Tec, which is expected to be completed during 2003.
Sales and profits Net sales climbed by 6.0% to SEK 8,640.1 million (8,148.2 m). Adjusted for acquisitions and exchange rate fluctuations, net sales rose by 5.8%. The Getinge Group’s operating profit rose by 7.8% to SEK 1,049.5 million (974.0 m), which is equivalent to 12.1% (12.0%) of net sales. Net financial items totalled SEK –173.9 million (–223.6 m), of which net interest items made up SEK –169.9 million (–212.0 m). The Group’s profit before tax rose 16.7% to SEK 875.6 million (750.4 m) corresponding to 10.1% (9.2%) of net sales.
Product development Product development is one of the cornerstones of the Group’s organic growth. Getinge does not intend to perform all development in-house, and is happy to co-operate with competent external partners. In this way the Group has access to new and commercially viable technology. Global development is continuously monitored and a large number of potential projects are evaluated annually. Acquisition of suitable companies is also a complement to internal product development.
Tied-up capital The total value of stocks corresponded to 19.0% (21.1) of net sales . Accounts receivable corresponded to 28.8% (31.9) of net sales. Capital employed within the Group was SEK 6,528.7 million (6,592.8 m). The return on capital employed was 15.9% (14.8%). Goodwill totalled SEK 2,803.6 million (2,768.3 m) at the end of the financial year. Investments Net investments in machinery, equipment and buildings, but excluding equipment for renting out, amounted to SEK 149.6 million (180.9 m). Investments mainly refer to investments in production facilities, tools and IT. Acquisitions On 12 June 2002, 100% of the voting rights and capital share of Heraeus Med Tec situated in Hanau, Germany, were acquired. The company was included in the Group with effect from 1 July 2002. Heraeus Med Tec has sales of around SEK 500 million and means a considerable boost to the business area’s position on the markets for surgical lights and ceiling service units. In addition to these two areas of products the company is active in therapy accessories and gas distribution for operating theatres. It was announced in August that the business area was considering closing the facilities in Hanau and moving existing production for surgical lights and ceiling service units to Ardon, France, while
50
Environmental issues Four of the Group’s Swedish subsidiaries run production and permit-required activities according to the Swedish Environmental Code. Permits are valid for the products that each company is responsible for. Besides a general permit for the engineering industry, permits have also been acquired for spray-painting, transporting waste and storing bottled gas. The external environmental impact consists of emissions and discharges into the air and water, as well as noise from the plants. Production in the US and France moved during the year to Sweden. Despite this, all of the production facilities’ external environmental impact lies well below the relevant authority’s and permit requirements. All of the facilities in Sweden have started to work on obtaining ISO 14001 certification. Taxes The Group’s total taxes amounted to SEK 253.9 million (225.1 m), corresponding to 29.0% (30.0%) of the pre-tax profit. The fact that the Group’s profit has, in part, been generated by foreign subsidiaries with a higher tax burden explains why the tax burden is higher than the Swedish corporate tax rate of 28% (see note 8). Financial position and equity/assets ratio The Group’s net debt was SEK 3,376.1 million (4,030.0 m) and the cash flow after investments in tangible fixed assets was SEK 1,061.8 million (-91.0 m). Shareholders’ equity at year-end was SEK 3,158.2 million (2,952.9 m) giving an equity/assets ratio of 33.5% (30.8%)
Personnel There were 5,556 (5,330 ) employees on 31 December 2002, of whom 877 (820) were employed in Sweden. The work of the Board and ownership issues The Getinge Board consists of seven members, without deputies, elected by the AGM and two members with deputies chosen by the employees. As a complement to the Companies Act regulations and the articles of association the Board establishes a programme each year for its work including instructions concerning the division of work within the Board, division of responsibility between the Board and the CEO and financial reporting to the Board. The fixed procedures for the Board were not changed during the year. During 2002, Getinge’s Board held 7 minuted meetings. The Board also held a meeting in January 2003 at which the results for 2002 were addressed and thereafter published. The Board addressed the stated points that were taken up at each Board meeting in accordance with Board procedures such as state of the business, budgets, annual accounts and interim reports. Furthermore, comprehensive issues were addressed concerning company acquisitions and other investments, long-term strategies, structural and organisational changes. Individual Board members also assisted Group management in various strategic issues. The Board has chosen a remuneration committee from among its own members for the consideration of terms of employment for certain executive managers. The entire Board meets the company’s auditors twice a year. This takes place at the Board meeting in October, where the scope and orientation of the audit is determined, and at the Board meeting in January, where the auditor’s observations from scrutiny of the Group’s internal controls and accounts are considered. Due to this procedure, it is considered that there is currently no need for an auditing committee. Getinge AB’s nomination procedure is carried out by the chairman of the Board annually gathering together the major shareholders in good time before the general meeting in order to establish the Board’ composition and working procedures. Due to this procedure, it is considered that there is currently no need for a nomination committee.
Sensitivity analysis Getinge’s results are affected by a series of external factors. The table below shows how changes to some of the important factors would have affected the Group’s profit before tax in 2002. No consideration is given to the effect of possible compensatory risk management measures that Getinge applies in accordance with its established policy. Change in profit before tax, SEK m Price change Cost of sold goods Salary costs Interest rates
+/- 1% +/- 1% +/- 1% +/- 1%-point
+/- 86.4 +/- 48.2 +/- 27.6 -/+ 25.8
The effect on the Group’s profits before tax of a change in interest rates of +/- 1 percentage point was calculated based on the Group’s bank loans at the end of 2002. Exchange rate fluctuations The table below indicates the Group’s sensitivity to changes in exchange rates for SEK against USD, EUR and GBP in 2003. The effects on profit are expressed in SEK million and shown with the hedging measures taken by the Group as of January 31, 2003. (+/-) USD EUR GBP
2% 2.6 2.9 6.1
5% 6.6 7.2 15.2
10% 13.2 14.3 30.4
A change in the currency above against SEK affects profits in the same direction as the percentage change indicated. Outlook The order book had reached a very good level at the end of 2002. Market conditions for all the business areas are judged to be healthy. The earnings trend for the Group’s business areas looks good. A substantial hike in profits is expected for Infection Control.
Effect of exchange rate changes on profits The table below indicates the changes, in SEK m, in the income statement if the exchange rates for 2001 are used instead of the exchange rates for 2002: Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +155.3 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +3.5 Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -58.9
51
Financial risk management
Most of the Getinge Group’s operations are located outside Sweden. This situation entails exposure to different types of financial risks that may cause fluctuations in results, cash flow and shareholders’ equity due to changes in exchange rates and interest rates. In addition, the Group is exposed to refinancing and counter-party risks. The primary role of the parent company’s treasury unit is to support business activities and identify the best way of limiting the Group’s financial risks in line with the Board’s established policy. Getinge’s financial activities are centralised to benefit from economies of scale, improve internal control and to facilitate follow-up of risks. Currency risks Exchange rate fluctuations affect the Group’s profits and shareholders’ equity in different ways:
Transaction exposure Sales income and production costs in foreign currencies entail a transaction risk that affects Group profits. The Group’s flow of foreign currencies consists mainly of the income generated by export sales. The most important currencies are USD, EUR and GBP. Expected net flow in foreign currency for the coming 6-12 months shall be hedged in its entirety according to the Group’s policy. Hedging of currency always aims to secure the value of expected net commercial flows in foreign currencies and occurs mainly with the help of forward contracts. The diagram shows the Group’s commercial net flow (USD, EUR and GBP) exposed to a transaction risk, during 2002. SEK m 1000 900 800 700 600 500 400 300 200 100 0 USD
EUR
GBP
Conversion risk – income statement When converting foreign subsidiaries’ results into SEK currency exposure occurs, which can, when exchange rates fluctuate, affect the Group’s profits. In accordance with the Group’s currency policy exposure arising when consolidating the foreign subsidiaries’ operating profit is limited by the budgeted operating profit after amortisation of goodwill in USD, EUR and GBP being hedged up to 90% with the help of forward contracts.
52
Conversion risk – balance sheets When converting foreign subsidiaries’ net assets into SEK currency exposure occurs, which can affect the Group’s shareholders’ equity. To minimise the effects of this conversion the exposure arising shall, in accordance with the Group’s currency policy, be hedged with loans or forward contracts in the relevant currency. Interest rate risks Changes in market interest rates affects the Group’s net interest. How quickly interest rate changes have an effect on net interest depends on the fixed interest term of the loans. The financial policy of the Group states that the fixed interest term in borrowings should be no more than 2 years. On 31 December 2002 the average fixed interest term for Group borrowings was around 11.5 months. In order to reduce interest rate risks and reach the desired fixed interest term for borrowings, financial instruments, preferably swap agreements, are used. The Group’s liquid assets are placed on short term deposits with the aim of excess funds being used to amortize existing loans. If the average interest rate for currencies represented in the Group’s borrowings at the end of the year changed momentarily by 1 percentage point this would affect profits by SEK +/- 25.8 million on an annual basis. Refinancing risks Medium-term committed credit facilities are used to secure future raising of capital and refinancing of loans falling due. At the start of 2002 the Group had a committed loan facility of USD 200 million with a group of banks. The agreement matures in the spring of 2004. During Q1 2002 a further EUR 150 million was secured through the company signing an agreement for a medium-term loan facility with a group of banks. This agreement matures in the spring of 2007. In addition to these credit facilities the Group uses short-term uncommitted credit lines. Counter-party risks The risk of a counter-party not complying with commitments according to financial contracts is limited by the choice of creditworthy counter parties and limiting involvement to the said party. The Group’s liquidity is placed on bank accounts and thus has negligible credit risks and the Group’s total counter-party risks in this case should be considered to be limited. Debt portfolio per currency 31 December 2002 (countervalue in SEK m) USD .......................................................................................1,031.2 EUR .......................................................................................1,178.3 GBP ............................................................................................60.7 SEK .................................................................................................283.0 Other ...........................................................................................24.7 Total........................................................................................2,577.9
Proposed allocation of profits
The Group’s unrestricted shareholders’ equity, as per the Consolidated Balance Sheet, totals SEK 1,120.5 million.
The following Parent Company earnings are at the disposal of the Annual General Meeting: Net profit for the year Profit carried forward
214.6 300.1
Total
514.7
The Board and the Chief Executive Officer propose that a dividend of SEK 4.25 should be distributed to shareholders 214.5 that the following sum should be carried forward 300.2 Total 514.7
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, 14 March 2003
Fredrik Arp
Carl Bennet
Bo Damberg
Anders Frick
Kerstin Paulsson
Mats Wahlström
Bent Carlsen
Johan Malmquist Chief Executive Officer
Karl-Göran Olofsson
Our Auditors’ Report was submitted on 14 March 2003
Mats Fredricson Authorized Public Accountant
Jan Nilsson Authorized Public Accountant Deloitte & Touche AB
53
Consolidated Income Statement SEK m Net sales Cost of goods sold Gross profit
Selling expenses Administrative expenses Research and Development costs Other operating income Other operating expenses Operating profit/loss
54
Note 1, 2 3
2002 8,640.1 -4,825.0 3,815.1
2001 8,148.2 -4,574.3 3,573.9
3 3 3
-1,731.5 -774.3 -248.2 34.3 -45.9 1,049.5
-1,581.3 -804.2 -217.4 19.2 -16.2 974.0
1, 4, 19, 23,24
Interest income and similar profit items Interest expenses and similar loss items Profit after financial items
5 6
23.5 -197.4 875.6
19.2 -242.8 750.4
Tax on profit for the year Net profit for the year
8
-253.9 621.7
-225.1 525.3
Earnings per share
7
12.32
10.60
Consolidated Balance sheet SEK m ASSETS Fixed assets Intangible fixed assets Tangible fixed assets Shares in associated companies Long-term receivables Deferred tax asset Total fixed assets
Note
2002
2001
4 4, 19 9
2,803.6 1,252.5 – 43.4 464.4 4,563.9
2,768.3 1,341.0 2.2 55.3 404.9 4,571.7
1,638.6 5.0 2,489.6 182.9 123.2 412.8 4,852.1 9,416.0
1,718.6 8.3 2,597.5 172.6 156.3 364.4 5,017.7 9,589.4
SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES Shareholders’ equity 13 Share capital Restricted reserves Total restricted shareholders’ equity Unrestricted reserves Net profit for the year Total unrestricted shareholders’ equity Total shareholders’ equity
100.9 1,936.8 2,037.7 498.8 621.7 1,120.5 3,158.2
100.9 1,861.4 1,962.3 465.3 525.3 990.6 2,952.9
Provisions Provisions for pensions, interest-bearing Provisions for pensions, non interest-bearing Restructuring reserves Other provisions Total provisions
14, 20 20 15 21
1,211.0 130.7 253.5 347.5 1,942.7
1,089.8 133.1 148.8 406.6 1,778.3
14, 19
2,415.3 26.2 2,441.5
2,133.5 45.9 2,179.4
162.6 188.9 513.9 159.1 229.5 619.6 1,873.6 9,416.0
1,171.1 158.9 532.8 113.5 230.7 471.8 2,678.8 9,589.4
76.0 167.5
70.0 195.9
Current assets Stock-in-trade Advances to suppliers Accounts receivable Other receivables Prepaid expenses and accrued income Liquid funds Total current assets TOTAL ASSETS
8
10
11 12, 14
Long-term liabilities Interest-bearing long-term loans Other long-term liabilities Total long-term liabilities
Current liabilities Interest bearing short-term loans 14, 16, 19 Advance payments from customers Accounts payable Tax liabilities 8 Other liabilities Accrued expenses and deferred income 17 Total current liabilities TOTAL SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES
Pledged assets Contingent liabilities
18 18
55
Consolidated Cash flow statement SEK m Current activities Operating profit Adjustment for items not included in cash flow Depreciation
2002
2001
Interest received and similar income Interest paid and similar costs Taxes paid Cash flow from current activities before changes to working capital
1,049.5 -2.3 388.1 1,435.3 21.3 -201.5 -232.2 1,022.9
974.0 1.0 367.3 1,342.3 19.3 -233.1 -149.2 979.3
Changes in working capital Stock-in-trade Rental equipment Current receivables Current liabilities Restructuring reserves utilised Cash flow from current activities
164.4 -32.6 328.3 -113.5 -158.1 1,211.4
-292.2 -24.7 -275.2 226.4 -523.7 89.9
-313.3 -149.6 -462.9
-450.6 -180.9 -631.5
– -748.8 143.2 65.7 -189.3 29.1 -700.1
490.1 324.2 133.8 -46.3 -159.0 -72.2 670.6
Cash flow for the period Liquid funds at period’s start
48.4 364.4
129.0 235.4
Liquid funds at period’s end
412.8
364.4
Investment activities Acquisitions of subsidiaries Acquisitions of tangible assets Cash flow from investment activities
Financing activities New share issue Change in interest-bearing loans Interest-bearing loans in acquired subsidiaries Change in long-term receivables Dividend paid Translation differences Cash flow from financing activities
56
Note
15
25
25
Accounting Principles The accounts have been drawn up in accordance with the Swedish Annual Accounts Act and the Swedish Financial Accounting Standards Council’s recommendations and statements. Amended Accounting Principles On 1 January 2002, a number of new recommendations came into force from the Swedish Financial Accounting Standards Council. These changes are part of an adaptation of Swedish GAAP to the International Accounting Standards (IAS), now called International Financial Reporting Standard (IFRS). The recommendations that came into force in 2002 and which apply to Getinge are “Consolidated Accounts RR1:00”, “Intangible assets RR 15”, “Provisions, contingent liabilities, and contingent assets RR 16”, “Impairment of assets RR 17”, “Borrowing costs RR 21” and “Related party disclosures RR 23”. When applying the transition regulations as a result of the above mentioned recommendations there will be no retroactive effect on Getinge’s accounts for previous financial years. When applying the new recommendations during the 2002 financial year Intangible assets RR15 and Provisions, contingent liabilities and contingent assets RR16 result in a change to Getinge’s accounting principles.
Consolidated Accounts Getinge's accounts comprise the Parent Company and all companies in which Getinge AB owns more than half of the shares’ voting rights. The accounts have been drawn up in accordance with the Swedish Financial Accounting Standards Council’s recommendations. Companies acquired during the year have been included in the Consolidated Income Statement from the date of acquisition. Acquired companies are consolidated in the Consolidated Accounts in accordance with the acquisition method, which means that the acquisition value of the shares in subsidiaries is eliminated against their shareholders’ equity at the date of acquisition. The shareholders’ equity in the subsidiaries is determined from a market value of assets, liabilities and provisions at the time of the acquisition. If required, in accordance with the acquisition analysis, provisions for restructuring costs are made. Arjo is reported from the 1995 merger in accordance with the pooling method. An assessment of deferred tax on acquired untaxed reserves is made in conjunction with the acquisition. Deferred tax on the difference between the calculated market values of assets and liabilities and the fiscal residual value is calculated to the extent that the difference is not included in untaxed reserves. For cases where the acquisition value of shares exceeds the acquired shareholders’ equity, calculated as above, the difference is accounted for as goodwill, which is written off according to plan. The internal balances and internal profits have been eliminated in the consolidated accounts. When eliminating internal transactions, the fiscal effect is also calculated on the basis of rates of taxation applicable . Untaxed reserves earned after the acquisition are, in the Consolidated Balance Sheet, divided into deferred tax liability and restricted shareholders’ equity, employing the effective rate of taxation in the respective country. Foreign currencies
Translation of foreign activities’ currency All foreign subsidiaries are classified as independent. Getinge employs the current method when converting foreign subsidiary companies’ Balance Sheets and Income Statements. This means that
all assets and liabilities in subsidiaries are converted at the closing day rate, while all items in the Income Statements are converted at the average rate. The translation difference arising in this context is an effect partly of the difference between the average rates of the Income Statements and the closing day rates, and partly of the fact that net assets are converted at a different rate at the end of the year than at the beginning. Translation differences are not accounted for in the Income Statement but carried directly to equity. To reduce the effects that arise when converting foreign subsidiaries it is the company’s policy for the parent company to raise loans in foreign currencies as a balance against net assets in the foreign subsidiaries. The exchange rate differences on these loans, after deductions for fiscal effects attributable thereto, have been carried directly to shareholders’ equity in the consolidated accounts.
Receivables and liabilities in foreign currencies Receivables and liabilities in foreign currencies are valued at the closing day rates and unrealised exchange rate profits and losses are included in the results. Exchange rate profits (losses) on operatingrelated receivables and liabilities are reported as other operating income (operating costs). Exchange rate differences regarding financial assets and liabilities are reported under “Other financial items”. Future hedged receivables and liabilities have been valued at the valid forward rate. Advances from customers are booked at the exchange rates applying when each advance was received, since a liability to refund is not envisaged.
Hedging of future flows Forward contracts relating to the hedging of future in and out payments in foreign currency are not market valued at closing day. Effects arising when prolonging forward currency contracts taken up to hedge future flows, are booked as assets or debts in the balance sheet until the currency flows occur and the forward contracts expire. Due to this principle Getinge reported a debt worth SEK 17.9 million (asset 47.4 m) at the end of the financial year. Net sales and purchase costs that are hedged are entered in the income statement at the forward rate. Revenue recognition Revenue is included in the accounts principally when all risks and rights connected with the ownership have been transferred to the buyer, which usually occurs in connection with delivery, the price has been set and collection of the receivable is appropriately secured. If delivery is postponed at the buyer’s request, but the buyer takes over the proprietary rights and accepts the invoice, as a “bill and hold” sale, this will be recognized as revenue at the time when the proprietary rights are transferred. Revenue recognition of income normally occurs when the buyer has accepted delivery and installation and the final inspection has been carried out. However, revenue is accounted for as soon as delivery has been carried out if the installation and final inspection are not of great value. Revenue recognition of services will be at the rate the services are performed. Revenue from equipment rented out is allocated to the particular period of the rental agreement. Tangible fixed assets Tangible fixed assets, mainly consisting of machinery, equipment and properties, are reported at their acquisition value with deductions for the accumulated depreciation according to plan.
57
Depreciation according to plan Depreciation according to plan is based on the acquisition values of the assets and their estimated economic lifespan. DEPRECIATION ACCORDING TO PLAN . . . . . . . . . . . . . . . . . % Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 Land improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Production tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Equipment for renting out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Computer equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Consolidated goodwill arising in conjunction with corporate acquisitions is amortised linearly according to the plan drawn up for each acquisition over their anticipated economic life. For long-term strategic corporate acquisitions, the amortisation period is 20 years, for other acquisitions 10 years. Most of the Group’s acquisitions are strategic. Intangible fixed assets Research costs burden are expensed as they arise. Development costs that qualify as intangible fixed assets are activated; other development costs are accounted as costs. The criteria for activating intangible fixed assets during 2002 were not fully fulfilled, which is why no costs have been activated. Write-downs When there is indication that an asset has dropped in value its recyclable value is established. If the recyclable value falls below the booked value then a write-down of assets is made. Stock-in trade Stock has been valued at whichever is the lower of the acquisition value in accordance with the first in/first out (FIFO) principle, and true value. The stock-in-trade includes a share of indirect costs that is related to this. Receivables Receivables are reported net after allocation for doubtful debts. Provisions for uncertain receivables are based on individual assessments of the receivables, taking expected losses into account. Pensions All pension commitments not taken over by insurance companies, or otherwise hedged through funding by an external party, are reported under liabilities in the balance sheet.
58
Provisions Provisions are defined as liabilities that are uncertain with reference to amount or timeframe because of an undertaking as a result of an event that has occurred, it is probable that a flow of resources will be required in order to regulate the undertaking and that a reliable estimation can be made. Pensions, deferred tax liabilities, restructuring measures, guarantee commitments and other similar items are recorded as provisions in the balance sheet. Taxes All tax is accounted for in the income statement that is expected to be paid on the recorded results. This tax has been estimated according to each country’s tax regulations and is accounted for under the item “Taxes”. Tax legislation in Sweden and certain other countries allows for allocation to special reserves and funds. Companies can thus, within certain limits, dispose and retain reported profits without being immediately taxed. However, the Group shows deferred tax concerning such untaxed reserves. The consolidated accounts also show deferred tax on the difference between the booked value and tax value on assets and liabilities. Deferred tax receivables are only accounted for to the extent that they can probably be utilised within the foreseeable future. To calculate deferred tax, current tax rates have been used for each respective country. Leasing Leasing is classified in the consolidated accounts as financial or operational leasing. Financial leasing exists where the financial risks and benefits associated with the ownership in all essential matters are transferred to the lessee. In other cases it is an operational leasing. For financial leasing the present value of the minimum leasing charge is accounted, or the actual value if this is lower, as a fixed asset. The remaining payment liability is reported among liabilities. Financial agreements for company cars, copying machines and the like are reported for intangible reasons as operational agreements. Property rental is included in operational leasing. No significant leasing agreements have been signed. Long-term interest-bearing liabilities At the end of 2002 the Group’s long-term interest-bearing liabilities amount to SEK 2,415.3 million, which in total is within the company’s granted mid-term credit facilities of USD 200 million and EUR 150 million, respectively.
Notes to the Consolidated Accounts NOTE 1:
NET SALES AND PROFIT PER BUSINESS AREA AND GEOGRAPHIC MARKET, SEK M
Net Sales
NOTE 2:
Geographic market Nordic region Other Western Europe Eastern Europe US & Canada Asia, Oceania, Africa, Middle East, Latin America Total
2002 508.4 4,178.5 217.4 2,761.4 974.4 8,640.1
2001 448.4 3,914.9 147.0 2,709.2 928.7 8,148.2
Operating Profit 2002 2001 157.3 79.3 634.6 590.1 13.1 6.5 191.0 255.5 53.5 42.6 1,049.5 974.0
Business Area Infection Control Surgical Systems Extended Care Other Total
3,359.3 2,520.8 2,720.0 40.0 8,640.1
3,204.3 2,223.4 2,655.5 65.0 8,148.2
305.9 254.9 487.6 1.1 1,049.5
NET SALES PER INCOME AREA, SEK M
2002 7,320.2 1,038.4 281.5 8,640.1
2001 6,923.2 938.0 287.0 8,148.2
Summary Buildings and land improvements Machines and other technical plants Equipment, tools and installations Rental equipment Total depreciation, tangible fixed assets Intangible assets (goodwill) Total depreciation, fixed assets
2002 -37.5 -56.8 -107.4 -21.3 -223.0 -165.1 -388.1
2001 -36.2 -59.9 -100.2 -14.8 -211.1 -156.2 -367.3
Depreciation is recorded as: Cost of goods sold
-116.5
-105.9
Selling expenses Administrative expenses Research and development costs Total
-182.8 -79.4 -9.4 -388.1
-177.2 -75.5 -8.7 -367.3
Product sales Service and installations Renting out equipment Total
NOTE 3:
320.8 228.4 421.3 3.5 974.0
DEPRECIATION ACCORDING TO PLAN
59
NOTE 4:
INTANGIBLE AND TANGIBLE FIXED ASSETS
Acquisition value Value according to 2002 balance sheet Translation differences Reclassifications In new companies on acquisition Sales/ disposals Investments Value according to 2001 balance sheets IIntangible fixed assets Goodwill
Tangible fixed assets Buildings & land Machines & other technical plants Equipment, tools and installations Rental equipment Construction in progress Advance for tangible fixed assets Total
3,246.0
396.5
-32.4
–
–
-211.7
3,398.4
1,111.8 754.9 934.4 249.7 17.9 4.5 3,073.2
27.8 52.9 91.6 32.6 0.9 9.3 215.1
-11.5 -65.5 -42.0 -48.0 – – -167.0
– 24.7 42.9 – – – 67.6
– -5.3 -3.5 10.8 -17.4 – -15.4
-53.2 -38.2 -60.3 -30.1 -0.5 -0.1 -182.4
1,074.9 723.5 963.1 215.0 0.9 13.7 2,991.1
-477.7
-165.1
3.8
-0.5
–
44.7
-594.8
-405.8 -527.5 -606.0 -192.9 – – -1,732.2
-37.5 -56.8 -107.4 -21.3 – – -223.0
16.0 52.1 32.9 48.0 – – 149.0
– -18.0 -32.1 – – – -50.1
– 1.6 6.0 – – – 7.6
20.7 30.4 35.5 23.5 – – 110.1
-406.6 -518.2 -671.1 -142.7 – – -1,738.6
Accumulated depreciation Value according to 2002 balance sheet Translation differences Reclassifications In new companies on acquisition Sales/disposals Depreciation for the year Value according to 2001 balance sheets Intangible fixed assets Goodwill
Tangible fixed assets Buildings & land Machines & other technical plants Equipment, tools and installations Rental equipment Construction in progress Advance for tangible fixed assets Total
The total tax assessment value of the Group’s properties in Sweden was SEK 80.9 million (79.3 m) of which 14.3 million (13.7 m) is for land.
60
NOTE 5:
INTEREST INCOME AND SIMILAR PROFIT ITEMS, SEK M
Interest income Currency gain Other Total
NOTE 6:
2002 10.4 10.4 2.7 23.5
2001 19.2 – – 19.2
2002 -180.3 – -17.1 -197.4
2001 -231.2 -2.8 -8.8 -242.8
INTEREST COSTS AND SIMILAR LOSS ITEMS, SEK M
Interest costs Currency loss Other Total Borrowing costs burden profits for the period they are attributable to.
NOTE 7:
EARNINGS PER SHARE
The number of shares in the company in 2002 amounted to 50,468,480. A new share issue was carried out at the beginning of April 2001. For information concerning shares prior to this the bonus issue element in the new share issue is dealt with by a factor of 0.9717 (corresponding to 46,745,243 shares instead of 45,421,632).The average number of shares in 2001 was 49,537,676.
NOTE 8:
TAXES, SEK M
Tax cost: Actual tax cost Deferred tax Total tax cost
The relationship between the year’s tax costs and the reported profit before tax Reported profit before tax Tax according to current tax rate, 28% Adjustment for tax costs from previous year Tax effect of non tax-deductible costs: Depreciation of consolidated goodwill Other non-deductible costs Non-taxable income Utilized loss carry-forwards 1) Changed valuation of temporary differences 2) Adjustment for tax rates in foreign subsidiaries Reported tax cost
2002 -326.4 72.5 -253.9
2001 -226.1 1.0 -225.1
875.6 -245.2 -29.1
750.4 -210.1 12.6
-46.5 -32.0 5.4 65.9 46.8 -19.2 -253.9
-43.1 -34.8 4.8 – 75.4 -29.9 -225.1
1) Not previously activated loss carry-forwards have been utilised during the year due to companies previously recording losses generated profits during the year and new loss carry-forwards that have arisen 2002, SEK 65.9 m. 2) Structural changes in the Group have meant changed values of temporary differences, SEK 46.8 m.
61
The applicable tax rate has been estimated as the tax rate that applies to the parent company and amounts to 28% for both 2002 and 2001. Deferred tax receivables relate to the following temporary differences and loss carry-forwards: Deferred tax receivables relating to: 2002 Deductible temporary differences in provisions 98.2 Provision for restructuring reserve 32.1 Loss carry-forward 331.2 Other deductible temporary differences 198.0 Deferred tax liabilities relating to: Taxable temporary differences of fixed assets -8.0 Deferred tax on untaxed reserves -97.1 Other taxable temporary differences -90.0 Deferred tax receivables net 464.4
2001 77.6 37.4 314.7 212.3 -40.3 -97.8 -99.0 404.9
The balanced loss carry-forward are judged to be motivated because the companies they relate to are expected to generate profits in the near future. Non-reported tax receivables: Temporary differences Loss carry-forwards Total
232.4 116.8 349.2
212.8 79.1 291.9
It has been assessed that the non-reported tax receivables can not be utilised in the foreseeable future.Taxable temporary differences exist for shares in subsidiaries. Because there are no plans to sell the companies in the foreseeable future the deferred tax item has not been reported.
NOTE 9:
SHARES IN ASSOCIATED COMPANIES, SEK M
Getinge Lunatronic Aps Total
Capital shares 25%
2002 – –
2001 2.2 2.2
A further 50% of the shares in Getinge Lunatronics Aps were acquired in 2002. Because the percentage of voting rights exceeds 50% the company was merged and shares eliminated in the consolidated accounts.
NOTE 10: STOCK-IN-TRADE
Raw materials Work in progress Finished products Total
2002 773.3 229.6 635.7 1,638.6
2001 871.8 231.8 615.0 1,718.6
2002 6.1 13.5 7.1 96.5 123.2
2001 28.1 10.2 7.6 110.4 156.3
NOTE 11: PREPAID EXPENSES AND ACCRUED INCOME, SEK M
Accrued income Short-term part of SPP funds Prepaid rental costs Other pre-paid expenses and accrued income Total
62
NOTE 12: UNUTILIZED OVERDRAFT FACILITIES AND CREDIT FACILITIES
The granted, unutilized overdraft for the Group was SEK 75.3 million (53.9 m). In addition to this, on 31 December 2002, there were unutilized short-term credit facilities of SEK 1,034.2 million (996.0 m) and committed, unused facilities which can be utilised without qualification, of USD 36.9 million and EUR 150, corresponding to SEK 1,704.5 million (590.1 m) at the closing rate of exchange. A fee is payable for committed credit facilities, usually not in excess of 0.315 % of the unutilised amount.
NOTE 13: THE GROUP’S SHAREHOLDERS’ EQUITY, SEK M
Share capital 100.9 – – – – 100.9
Opening balance Dividend Net profit for the year Adjustments Translation difference Closing balance
Restricted reserves 1,861.4 – – 338.8 -263.4 1,936.8
Unrestricted reserves 990.6 -189.3 621.7 -338.8 36.3 1,120.5
Total 2,952.9 -189.3 621.7 0.0 -227.1 3,158.2
303.2 39.8
-64.4 -28.1
238.8 11.7
Total translation difference, opening balance Total translation difference, closing balance
The main cause for the reduction in the translation difference is the stronger Swedish krona against the USD, EUR and GBP. Exchange rate differences of hedging instruments in foreign assets have boosted the translation difference by 143.4.
NOTE 14: THE GROUP’S INTEREST-BEARING NET DEBT, SEK M
Current liabilities to credit institutions Long-term liabilities to credit institutions Allocated to pensions, interest-bearing Less liquid funds Total
2002 162.6 2,415.3 1,211.0 -412.8 3,376.1
Change -1,008.5 281.8 121.2 -48.4 -653.9
2001 1,171.1 2,133.5 1,089.8 -364.4 4,030.0
Change 159.1 212.0 86.7 -129.0 328.8
2000 1,012.0 1,921.5 1,003.1 -235.4 3,701.2
Of the long-term liabilities, SEK 4.1 million (2.7 m) is due for payment in five years or later.
NOTE 15: RESTRUCTURING RESERVES, SEK M
Opening balance, Allocated at acquisition of companies Utilised reserves from corporate acquisitions Other Exchange rate difference Closing balance
2002 148.8 259.5 -158.0 – 3.2 253.5
2001 558.1 85.3 -523.7 0.5 28.6 148.8
Around SEK 60 million (170 m) of 2002’s utilised restructuring reserves does not affect the cash balance. Getinge has chosen to account for the whole change in the cash flow statement to give an overall picture of the restructuring costs. The majority of the restructuring reserve will be utilized in 2003.
63
NOTE 16: CURRENT INTEREST-BEARING LOANS, SEK M
Liabilities to credit institutions Total
2002 162.6 162.6
2001 1,171.1 1,171.1
2002 222.9 71.1 41.9 23.8 259.9 619.6
2001 128.0 72.2 26.5 27.8 217.3 471.8
2002 9.4 20.0 46.6 76.0
2001 9.6 – 60.4 70.0
161.8 5.7 167.5
195.9 – 195.9
NOTE 17: ACCRUED EXPENSES AND DEFERRED INCOME, SEK M
Salaries Social security costs Commission Interest expenses Other accrued expenses and deferred income Total
NOTE 18: PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK M
Pledged assets Property mortgages Floating charges Assets burdened with retention of title Total Contingent liabilities Guarantees Other contingent liabilities Total
The assets burdened with retention of title are security for interest-bearing liabilities to credit institutions. Property mortgages and floating charges have been placed as security for credit not utilized as of 31 December 2002.The guarantees mainly consist of fulfilling guarantees.The likelihood of outflow is judged to be small.
NOTE 19: LEASING, SEK M
Leasing costs for assets held via operational leasing such as leased premises, machines and mainframe computers and office equipment are recorded among operating costs and for the Group amount to SEK 83.9 million (the variable cost included is SEK 0.6 million). Future minimal leasing agreements for non-annullable leasing contracts are as follows: Leasing agreement 2003 2004 - 2007 2008 and later Fixed assets held through financial leasing Acquisition value Accumulated depreciation Book value
64
Financial (present value)
3.8 12.1 3.9
Buildings & land
50.4 -6.5 43.9
Machinery & plant
0.9 -0.8 0.1
Operational
69.7 119.8 20.7
Equipment & tools
6.8 -4.2 2.6
NOTE 20: PROVISIONS FOR PENSIONS
Value according to 2002 balance sheet Translation differences Reclassification Unutilized funds, restored In new companies upon acquisition Utilized funds Provisions Value according to 2001 balance sheet Provisions for pensions, interest-bearing Provisions for pensions, non interest-bearing
1,089.8
83.6
-58.2
130.3
–
-6.3
-28.2
1,211.0
133.1
0.2
-0.4
–
-1.9
2.0
-2.3
130.7
69.7 336.9 406.6
72.8 188.7 261.5
-43.7 -188.3 -232.0
14.9 24.0 38.9
-6.3 -18.6 -24.9
12.7 -102.5 -89.8
-4.7 -8.1 -12.8
115.4 232.1 347.5
NOTE 21: OTHER PROVISIONS
Warranty provision Other provisions Total
Other provisions partly consist of a reserve for a kind of part-time pension in the German companies.The sum is determined on an actuarial basis, 47.6.The remainder consists of many, different, smaller, types of liability whose amount and timeframe are hard to define.
NOTE 22: AVERAGE NUMBER OF EMPLOYEES
The Group Australia Austria Belgium Canada China Czech Republic Denmark
Male 65 14 36 57 13 7 65
2002 Female 12 2 5 15 4 2 8
Total 77 16 41 72 17 9 73
Male 62 14 22 55 7 7 55
Female 12 2 1 14 1 2 7
2001 Total 74 16 23 69 8 9 62
Finland France Germany Greece Holland Hongkong Ireland Italy Japan Luxemburg Norway Poland South Africa Spain Sweden Switzerland UK USA Total
8 458 1,121 – 106 7 30 68 36 7 12 12 22 11 730 13 579 885 4,362
2 114 276 – 62 4 18 26 11 4 3 5 7 7 130 5 166 239 1,127
10 572 1,397 – 168 11 48 94 47 11 15 17 29 18 860 18 745 1,124 5,489
7 508 990 2 109 7 29 66 35 4 12 15 22 11 731 13 579 941 4,303
3 110 221 1 44 4 18 21 8 6 3 4 7 13 123 4 174 272 1,075
10 618 1,211 3 153 11 47 87 43 10 15 19 29 24 854 17 753 1,213 5,378
65
NOTE 23: STAFF COSTS, SEK M
2002 Board and President Other 103.9 2,170.8 21.1 495.7 9.2 90.4 134.2 2,756.9
Salaries and remuneration Social security costs Pension costs Total
2001 Board Total and President 2,274.7 80.5 516.8 14.1 99.6 7.2 2,891.1 101.8
Other 2.076.9 457.6 77.6 2,612.1
Total 2,157.4 471.7 84.8 2,713.9
Salaries and remuneration per country 2002
Australia Austria Belgium Canada China Czech Republic Denmark Finland France Germany Greece Holland Hongkong Ireland Italy Japan Luxemburg Norway Poland South Africa Spain Sweden Switzerland UK USA Total
Board and President 1.1 0.9 1.0 2.1 – 0.6 1.9 0.8 18.2 17.5 – 6.8 2.4 1.4 2.2 3.6 0.8 1.1 0.7 0.4 1.1 16.8 – 12.1 10.4 103.9
of which bonus 0.3 0.2 – 0.6 – 0.2 0.2 0.2 3.7 5.4 – 1.7 0.4 0.5 0.7 – – 0.2 0.1 – – 2.9 – 3.2 2.0 22.5
Other 17.4 5.4 16.4 21.2 2.5 1.0 32.2 2.9 174.8 510.5 – 53.9 3.7 14.4 31.2 23.0 6.7 8.2 3.7 2.1 4.5 249.7 12.0 298.6 674.8 2,170.8
2001 Board Total and President 18.5 1.0 6.3 0.7 17.4 1.0 23.3 2.3 2.5 1.6 0.5 34.1 1.9 3.7 0.7 193.0 8.9 528.0 11.8 – 0.4 60.7 4.0 6.1 2.3 15.8 1.3 33.4 2.3 26.6 3.3 7.5 3.1 9.3 0.8 4.4 0.7 2.5 0.5 5.6 1.8 266.5 13.0 12.0 310.7 10.9 685.2 7.3 2,274.7 80.5
of which, bonus 0.2 0.5 0.1 0.2 0.2 1.7 3.7 0.6 0.4 0.4 0.7 0.2 1.4 0.1 0.1 0.4 1.9 1.8 1.4 16.0
Other 15.5 5.8 7.5 18.4 1.9 0.7 25.7 2.7 184.0 478.9 0.9 47.1 4.1 13.2 25.7 23.3 7.0 5.2 4.0 3.0 4.7 228.5 10.9 294.4 663.8 2,076.9
Total 16.5 6.5 8.5 20.7 1.9 1.2 27.6 3.4 192.9 490.7 1.3 51.1 6.4 14.5 28.0 26.6 10.1 6.0 4.7 3.5 6.5 241.5 10.9 305.3 671.1 2,157.4
Remuneration to Senior Management Principles The Annual General Meeting decides on remuneration to the Chairman of the Board and its members.There is no specific remuneration for committee work. Employee representatives do not receive Board remuneration. Remuneration to the CEO and other senior management is made up in the form of basic pay, variable remuneration, other benefits and pensions. Other senior management are the 7 people, who together with the CEO, make up the Group management. For management structure see page 80-81. The division between basic pay and variable remuneration should be in proportion to the manager’s level of responsibility and authority.The CEO’s variable remuneration is a maximum of 50% of the basic pay. Other managers’ variable remuneration is a maximum of 25-50% of the total remuneration.The variable part is based on the result in relation to the individually set goals. There are no benefits or remuneration in the form of financial instruments.
66
Remuneration and other benefits during the year, tSEK Chairman of the Board Board members Chief Executive Officer Other senior management* Total
Basic pay/ Variable Board fees remuneration 450 – 1 125 – 4 200 1 400 11 738 7 614 17 513 9 014
Other benefits – – 450 602 1 052
Pension Other costs remuneration – – – – 1 400 191 2 578 120 3 978 311
Total
1 7 22 31
450 125 641 652 868
* 7 people Comments Variable remuneration refers to 2002 financial year’s cost-accounted bonus, paid out in 2003. For information about bonuses, see below. Other benefits refer to company car, house supplied, etc. The Chairman of the Board has not received any remuneration other than his Board fee.
• • •
The CEO has sickness insurance totalling 24.5% of the pension-based pay between 20-30 basic amounts and 32.5% of the pensionbased pay that exceeds 30 basic amounts.The agreement is independent in relationship to other pension benefits. Bonuses: The CEO’s bonus for 2002 was based on the individual goals set by the Board.The bonus sum for 2002 was equivalent to 34% of basic pay. Other senior managers’ bonuses for 2002 were based on a combination of the result of the individual business area and individual goals. Pensions: Pension benefits for the CEO, except the applicable ITP pension are as follows:The CEO’s pensionable age is 60. The pension will be 70% of the pension-based pay between 60 and 65 years. At 65 and thereafter the pension will be 32.5% of the pension-based pay in excess of 20 basic amounts that the CEO had at age 60 from the company. Pension-based pay is considered to be the basic pay. Survivor annuity is 16.25% of the pension-based pay in excess of 20 basic amounts. The pensionable age for other senior management varies between 60 and 65. Pension agreements have been signed in accordance with the local regulations for the countries in which senior managers are resident. This explains why the pension level varies from 20% to 70% of pension-based pay. All pension benefits are transferable, i.e. non-conditional of future employment. Severance pay: If the CEO gives notice, a six-month period of notice applies. If termination of employment is on the part of the company, the CEO has the right to severance pay during a period of notice corresponding to 12 months. Severance pay is not offset against any other income. If termination is on the part of the CEO, there will be no severance pay. Upon termination of employment of any other executive managers, they have the right to severance pay during a period of notice that is a minimum of six months and a maximum of 12 months. Drafting and decision making: During the year the remuneration committee has given the Board its recommendations concerning remuneration principles for the remuneration of the executive management.The recommendations have included the proportion between fixed and variable remuneration and the size of possible pay increases.The remuneration committee has also proposed criteria for deciding bonuses, allocation and the size of the pension conditions and severance pay.The Board has discussed the remuneration committee’s proposals and decided in line with the remuneration committee’s recommendations. Remuneration to the CEO for the 2002 financial year has been decided by the Board on the basis of the remuneration committee’s recommendations. Remuneration to other executive management has been decided by the CEO in consultation with the Chairman of the Board. During 2002, the remuneration committee met three times.The committee’s work has been carried out with the support of external experts in issues concerning remuneration levels and structures. Options scheme for executive management in the US: In January 2000, the US subsidiary introduced a synthetic options scheme for its executive management.The scheme covers around 20 executives and totals 310,000 options.The scheme runs from 25 January 2000 until 25 January 2005.The options’ exercise price will be calculated as the difference between the initial value of SEK 94.62 and the Getinge share price in force on the day of the redemption.The guaranteed value has been adjusted from SEK 97.55 to SEK 94.62 due to the bonus share element of the new share issue in 2001.The option holder has the right after each full year of employment over a five year period to redeem a proportion of the options.The Getinge Group has signed an insurance contract that fully covers any possible price surge (but not a fall below 94.62) during the options’ duration. Allocation has been made for payroll overheads.The holders of these options on 31 December 2002 were as follows:
Executive management of American subsidiary Total
Country US
Number of options 80,070 80,070
67
NOTE 23: STAFF COSTS, CONT.
Number 66,060 27,696 800 90,213 184,769
Exercise date 22/2/2002 30/4/2002 9/7/2002 4/9/2002
Difference against guaranteed value, SEK m 6.6 2.6 0.1 6.9 16.2
Exercise price 195.06 187.47 180.00 171.40
All options available for redemption in 2002 have been utilised.
NOTE 24: AUDITING: FEES AND COMPENSATIONS, SEK M
Fees to Deloitte & Touche AB Auditing assignments Other assignments
2002 5.1 4.4
2001 – –
Fees to Arthur Andersen AB Auditing assignments Other assignments
2002 – –
2001 7.0 4.9
Fees to Ernst & Young AB Auditing assignments Other assignments
2002 2.4 1.2
2001 – –
Deloitte & Touche is the Company’s auditor. Auditing assignments refer to the auditing of the annual report and accounts, as well as the Board’s and the CEO’s administration, other assignments that the company’s auditors are required to perform and advice or other support brought about by observations from auditing or carrying out similar tasks. Other assignments refer mainly to advice given about auditing and taxation issues plus assistance in connection with corporate acquisitions.
NOTE 25: ADDITIONAL INFORMATION TO THE CASH FLOW STATEMENT, SEK M
Acquisition of subsidiaries Goodwill Other fixed assets Stock-in-trade Receivables Liquid assets Minority interests Provisions for pension, interest-bearing Interest-bearing loans Non interest-bearing liabilities Paid purchase price Net debt in acquired companies Effect on the Group’s net debt
2002 387.6 52.9 84.4 193.4 3.5 – -170.3 -12.9 -405.0 173.6 139.7 313.3
2001 258.2 99.2 157.7 204.9 41.7 8.8 -3.2 -130.6 -278.2 358.5 92.1 450.6
NOTE 26: TRANSACTIONS WITH RELATED PARTIES
Group companies When supplying products and services between Group companies market conditions and pricing are applied. Inter-Group sales amounted to SEK 3,545 million for 2002 and SEK 2,774 million for 2001.
68
Income statement, Parent company SEK m Administrative expenses Other operating income Operating loss
Note 1 1, 16, 17
2002 -45.4 0.1 -45.3
2001 -36.0 – -36.0
Income from participations in Group companies Interest income and similar profit items Interest costs and similar loss items Profit after financial items
3 4 5
242.1 187.7 -186.5 198.0
203.0 165.5 -202.6 129.9
Appropriations Profit before tax
6
3.8 201.8
-4.9 125.0
Tax on profit for the year Profit for the year
7
12.8 214.6
65.0 190.0
69
Balance sheet, Parent company SEK m ASSETS Fixed assets Tangible fixed assets Shares in Group companies Shares in associated companies Long-term financial receivables Total fixed assets
2002
2001
23.6 2,902.5 – 1.1 2,927.2
16.7 2,879.0 2.2 20.3 2,918.2
5,220.8 0.0 6.5 147.6 5,374.9 8,302.1
5,464.5 0.1 6.5 105.7 5,576.8 8,495.0
100.9 2,524.7 2,625.6 300.1 214.6 514.7 3,140.3
100.9 2,524.7 2,625.6 270.9 190.0 460.9 3,086.5
1.1
5.0
2,405.4 2,405.4
2,133.5 2,133.5
12
2,707.6 4.9
3,221.2 4.5
Tax liabilities 7 Other liabilities Accrued expenses and deferred income 13 Total current liabilities TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
0.4 – 42.4 2,755.3 8,302.1
5.2 0.6 38.5 3,270.0 8,495.0
– 34.2
– 60.2
Current assets Receivables from Group companies Other receivables Prepaid expenses and accrued income Liquid funds Total current assets TOTAL ASSETS
SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital Restricted reserves Total restricted shareholders’ equity Profit brought forward Net profit for the year Total unrestricted shareholders’ equity Total shareholders’ equity
Note
2 8 9
10
11
Untaxed reserves
Long-term liabilities Interest-bearing long-term loans Total long-term liabilities Current liabilities Interest bearing short-term loans Accounts payable
Pledged assets Contingent liabilities
70
14
Cash flow statement, Parent company SEK m Current activities Operating profit Depreciation
Note
1
Interest received and similar income Interest paid and similar costs Payments from participations in Group companies Taxes paid Cash flow from current activities before changes to working capital
Changes in working capital Current receivables Current liabilities Cash flow from current activities
Investment activities Acquisitions of subsidiaries Acquisitions of tangible assets Cash flow from investment activities
Financing activities New share issue Change in interest-bearing loans Change in long-term receivables Dividend paid Group contributions received from subsidiaries Cash flow from financing activities
Cash flow for the period Liquid funds at period’s start Liquid funds at period’s end
2
2002
2001
-45.3 1.9 -43.4 187.7 -186.5 182.1 -3.1 136.8
-36.0 0.3 -35.7 165.5 -195.5 51.0 -0.8 -15.5
0.1 3.7 140.6
24.0 -21.3 -12.8
-31.5 -8.8 -40.3
-1.2 -12.4 -13.6
– -241.8 281.8 -189.3 90.9 -58.4
490.1 -232.4 -6.2 -159.0 38.0 130.5
41.9 105.7 147.6
104.1 1.6 105.7
71
Notes to Parent company accounts Accounting principles A statement of Getinge’s accounting principles is found on pages 57-58. Reporting the Group contribution has been in accordance with the Swedish Financial Accounting Standards Council’s statement. Group contributions are accounted according to the financial consequence.
NOTE 1:
DEPRECIATION ACCORDING TO PLAN
Summary Buildings and land improvements Equipment, tools & installations Total depreciation, fixed assets Depreciation is included as Administrative costs
NOTE 2:
2002 -0.1 -1.8 -1.9
2001 – -0.3 -0.3
-1.9
-0.3
TANGIBLE FIXED ASSETS
Acquisition value Value according to 2002 Balance sheet Investments Value according to 2001 Balance sheet Tangible fixed assets Buildings and land Equipment, tools & installations Total
4.3 13.7 18.0
– 8.8 8.8
4.3 22.5 26.8
-0.4 -0.9 -1.3
-0.1 -1.8 -1.9
-0.5 -2.7 -3.2
Accumulated depreciation Value according to 2002 Balance sheet Depreciation for the year Value according to 2001 Balance sheet Tangible fixed assets Buildings and land Equipment, tools & installations Total
NOTE 3:
INCOME FROM PARTICIPATION IN GROUP COMPANIES, SEK M
Dividend from Group companies Write-offs of shares in Group companies Total
NOTE 4:
2001 203.0 203.0
INTEREST INCOME AND SIMILAR PROFIT ITEMS, SEK M
Interest income from Group companies Other interest income Currency gains Total
72
2002 250.0 -7.9 242.1
2002
2001
151.8 6.1 29.8 187.7
161.1 4.4 – 165.5
NOTE 5:
INTEREST COSTS AND SIMILAR LOSS ITEMS, SEK M
2002 -26.2 -108.5 -40.4 -11.4 -186.5
2001 -9.6 -150.6 -37.9 -4.5 -202.6
2002 3.9 -0.1 3.8
2001 -4.9 – -4.9
0.2 0.9 1.1
0.1 4.9 5.0
Tax cost: Actual tax cost Deferred tax Total tax cost
2002 12.8 – 12.8
2001 19.9 45.1 65.0
The following current tax items relate to items that have been accounted for directly against shareholders’ equity: Group contribution
11.1
25.5
201.8 -56.5 3.3
125.0 -35.0 –
-4.0 70.0 – 12.8
-1.8 56.7 45.1 65.0
Interest costs, Group companies Other Interest costs Currency losses Other Total
NOTE 6:
APPROPRIATIONS AND UNTAXED RESERVES, SEK M
Appropriations Change to tax allocation reserve Difference between booked depreciation and depreciation according to plan Total Untaxed reserves Accelerated depreciation Tax allocation reserve Total
NOTE 7:
TAXES, SEK M
The relationship between the year’s tax costs and the reported profit before tax: Reported profit before tax Tax according to current tax rate, 28% Adjustment for tax costs from previous year Tax effect of non tax-deductible costs Other non-deductible costs Non-taxable income Changed valuation of temporary differences Reported tax costs
Deferred tax receivables relate to the following temporary differences and loss-carry forwards: Non-reported tax receivables: Temporary differences -45.1 Total -45.1
-45.1 -45.1
Taxable temporary differences exist for shares in subsidiaries. Because there are no plans to sell the companies in future the deferred tax item has not been reported.
73
NOTE 8:
SHARES IN SUBSIDIARIES
Parent company’s holding Arjo AB Axima Instrument AB Getinge Sterilization AB Getinge Aeroplane AB Getinge Airship AB Getinge Disinfection AB Getinge Letting AB Getinge Skärhamn AB LIC Audio AB Getinge Australia Pty Ltd Getinge-Arjo Holding GmbH Arjo GmbH Getinge D.S.E. NV Getinge Sterilizing Equipment Inc Getinge Industries Zhuhai (Ltd) Getinge/Arjo A/S Getinge Lunatronic ApS OY Getinge AB Getinge/Arjo France SA Getinge & Castle International Ltd Getinge Scientific KK Getinge/Arjo A/S Getinge Poland Sp Zoo NeuroMédica SA Getinge South Africa (Pty) Ltd Getinge Reinsurance AG Total book value
Registered office Eslöv Solna Halmstad Halmstad Halmstad Växjö Göteborg Tjörn Solna Australia Austria Austria Belgium Canada China Denmark Denmark Finland France Greece Japan Norway Poland Spain South Africa Switzerland
Swedish company reg. no. 556473-1700 556058-7809 556031-2687 556535-6317 556535-6309 556042-3393 556495-6976 556412-3569 556058-7460
Number of shares 23,062,334 – 50,000 100 100 25,000 1,000 1,000 1,000 39,500 – 1,273 600 1,230,100 1,000 525 399,000 15 150,250 100 10,000 4,500 500 40,000 500 2,000
Book value SEK m 2002 2,008.6 – 452.2 0.1 0.1 117.7 0.1 5.7 5.6 8.6 – 0.4 1.5 1.3 1.1 3.3 14.6 – 216.3 1.6 0.6 5.0 12.7 15.6 17.1 12.7 2,902.5
Book value SEK m 2001 2,008.6 0.3 452.2 0.1 0.1 117.7 0.1 5.7 5.6 8.6 0.4 – 1.5 1.3 1.1 3.3 – – 216.3 1.6 0.6 5.0 12.7 15.6 7.9 12.7 2,879.0
The parent company’s holding of shares in the subsidiaries constitutes the entire capital and voting rights of the respective company. Subsidiaries of sub-Groups: The Getinge Group, with its business in many countries, is organised 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’s sub-Groups as of 31 December 2002. The ownership interest is 100% except in certain cases.The Group’s voting rights and share of the capital is 76% in Lequeux Algérie. A further 50% of the shares were acquired in Getinge Lunatronic ApS in 2002. After the acquisition the Group owns 75% of the shares. Due to the basis of the existing agreement for the acquisition of the remaining 25%, these have been taken up as Group interest by entering the expected future redemption price as a liability. SWEDEN Arjo Ltd Med AB, 556473-1718 Eslöv Arjo Holding AB, 556402-6663 Eslöv Arjo Hospital Equipment AB, 556090-4095 Eslöv Arjo International AB, 556528-1440 Eslöv Arjo Scandinavia AB, 556528-4600 Eslöv Fjärrbilar Lastbils AB, 556496-6728 Göteborg Getinge International AB, 556547-8780 Halmstad Getinge Scientific AB, 556547-8798 Halmstad Getinge Sverige AB, 556509-9511 Halmstad ALGERIA Lequeux Algérie AUSTRALIA Arjo Hosp Equipm Pty Ltd Australia
74
BELGIUM Arjo Hospital Equipment NV SA Maquet & ALM Belgium N.V. Medibo NV Medibol Holding NV BRAZIL Getinge Brasil Ltda CANADA Arjo Canada Inc Gestion Techno-Médic Inc Getinge/Castle Canada Ltd CZECH REPUBLIC Arjo Hospital Equipment sro DENMARK Getinge-Kemiterm A/S FRANCE ALM SA Arjo Equipm Hosp SA Filance SA Getinge Production France SAS Lancer SNC Getinge France SAS Peristel SA
Stérilisation Médical International SA GERMANY Arjo Holding Deutschland GmbH Arjo Systeme GmbH Getinge Maquet Germany Holding Gmbh Getinge Maquet Verwaltungs GmbH Getinge Produktions GmbH Getinge Van Dijk Medizintechnik GmbH Heræus Med GmbH Lancer Industrie GmbH Maquet KG MediKomp GmbH Meditechnik GmbH HONG KONG Arjo Ltd Hong Kong Getinge/Castle Asia Ltd IRELAND Arjo Ireland Ltd ITALY Arjo Italia Spa Getinge Surgical Systems Italia spa Getinge S.p.A. THE Getinge Service S.p.A.
JAPAN Arjo Japan KK Maquet-Getinge KK LUXEMBURG Arjo International Sàrl Getinge Finance Sàrl Getinge Luxembourg Sàrl NETHERLANDS Arjo Nederland BV Getinge/Arjo Holding Netherlands BV Lancer Holland B.V. Medibol Beheer BV Medibol Medical Products BV Getinge B.V. POLAND Arjo Poland Sp.z.o.o. SWITZERLAND Arjo AG Switzerland Arjo International AG SPAIN Arjo Spain S.A. Getinge Iberica SL UK
Arjo Ltd UK Arjo Ltd Branch Buchanan Leasing Ltd Getinge Disinfection Ltd Getinge Industrier Holding UK Ltd Getinge Surgical Systems Ltd James Industries Ltd UK Parker Bath Ltd Pegasus Ltd Rowan Leasing Ltd Getinge UK Ltd US Arjo Inc USA Arjo Manufacturing Co Arjo USA Inc. Getinge Disinfection Inc Getinge/Castle, Inc Grand Traverse Technologies Inc Heræus Medical Inc Lancer USA Inc Pegasus Airwave Inc
NOTE 9:
SHARES IN ASSOCIATED COMPANIES, SEK M
Getinge Lunatronic Aps Total
Capital shares 25%
2002 – –
2001 2.2 2.2
50% of shares in Lunatronic Aps were acquired in March 2002. After the acquisition the company is no longer considered as an associated company.
NOTE 10: PREPAID EXPENSES AND ACCRUED INCOME, SEK M
2002 6.5 6.5
Other prepaid expenses and accrued income Total
2001 6.5 6.5
NOTE 11: PARENT COMPANY’S SHAREHOLDERS’ EQUITY, SEK M
Opening balance Dividend Group contribution, after deduction for tax effect Net profit for the year Closing balance
Share capital 100.9 – – – 100.9
Restricted reserves 2,524.7 – – – 2,524.7
Unrestricted reserves 460.9 -189.3 28.5 214.6 514.7
Total 3,086.5 -189.3 28.5 214.6 3,140.3
The nominal value of each share is SEK 2.00.The share capital breaks down into 3,375,540 class A shares with 10 voting rights each, and 47,092,940 class B shares with one voting right each, to make a total of 50,468,480 shares. Restricted funds consists of a reserve fund of SEK 1,825.1 m and a share premium reserve of SEK 699.6 m.
NOTE 12: INTEREST-BEARING SHORT-TERM LOANS, SEK M
Liabilities to credit institutions Liabilities to Group companies Total
2002 – 2,707.6 2,707.6
2001 1,133.0 2,088.2 3,221.2
2002 5.1 2.1 23.7 11.5 42.4
2001 2.6 1.6 23.7 10.6 38.5
NOTE 13: ACCRUED EXPENSES AND DEFERRED INCOME, SEK M
Salaries Social security costs Interest expenses Other accrued costs and prepaid income Total
75
NOTE 14: CONTINGENT LIABILITIES AND PLEDGED ASSETS, SEK M
Contingent liabilities Guarantees Total
2002 34.2 34.2
2001 60.2 60.2
The company has left security in the form of general guarantee commitments of a total of SEK 98.4 million (90.1 m) to the benefit of Group companies, of which SEK 34.2 million (60.2 m) has been utilised.
NOTE 15: AVERAGE NUMBER OF EMPLOYEES
Male 7
Sweden
2002 Female 3
2001 Total 10
Male 7
Total 13.8 5.5 3.1 22.4
Board and CEO 5.7 2.0 0.4 8.1
Female 3
Total 10
NOTE 16: STAFF COSTS, SEK M
2002
Salaries and remuneration Social security costs Pension costs Total
Board and CEO 7.1 2.8 1.4 11.3
Other 6.7 2.7 1.7 11.1
2001 Other 5.9 2.6 2.0 10.5
Total 11.6 4.6 2.4 18.6
See note 23 in Notes to the Group accounts for information concerning remuneration to executive management.
NOTE 17: AUDITING: FEES AND COMPENSATION, SEK M
Fees to Deloitte & Touche AB Auditing assignments Other assignments
2002 0.8 0.4
2001 – –
Fees to Arthur Andersson AB Auditing assignments Other assignments
2002 – –
2001 0.5 0.4
Deloitte & Touche is the Company’s auditor. Auditing assignments refer to the auditing of the annual report and accounts, as well as the Board’s and the CEO’s administration, other assignments that the company’s auditors are required to perform and giving advice or other support brought about by observations from auditing or carrying out similar tasks. Other assignments refer mainly to advice given about auditing and taxation issues plus assistance in connection with company acquisitions.
NOTE 18: NOTE 18:TRANSACTIONS WITH RELATED PARTIES
See Note 26 in Notes to the Consolidated Account.s
76
Auditors' Report To the general meeting of the shareholders of Getinge AB (publ) Corporate identity number 556408-5032 We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Getinge AB for the year 2002. These accounts and the administration of the company are the responsibility of the board of directors and the managing director. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit. We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An 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 information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant deci-
sions, actions taken and circumstances of the company in order to be able to determine the liability if any, to the company of any board member or the managing director. We also examined whether any board member or the managing 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. The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act, and, thereby, give a true and fair view of the company’s and the group’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. We recommend to the general meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.
Getinge, 14 March 2003.
Mats Fredricson Authorised Public Accountant
Jan Nilsson Authorised Public Accountant Deloitte & Touche AB
77
The Board
Carl Bennet
Bent Carlsen
Anders Frick
Fredrik Arp
Bo Damberg
Leif Holmgren
BOARD MEMBERS
78
Carl Bennet, born 1951. Chairman of the Board since 1997. Chairman of Boliden, Elanders, Håells Modul-System, Halmstad University, Lifco, Scanrec and Sorb Industri. Member of the Board of the National Labour Market Board (AMS), SNS (The Swedish Center for Business and Policy Studies) and Telia. Other positions: Member of The Swedish Government’s Research Advisory Board. Holds 3,375,540 class A and 3,755,031 class B shares via a privately-owned company.
Bent Carlsen, born 1948. Representative Member of the Board on behalf of the Swedish Metalworkers’ Union since 2000. Employed by Getinge Sterilization AB. Holds 111 class B shares.
Anders Frick, born 1945. Member of the Board since 1997. Former President and CEO of Arjo AB. Chairman of the Board of ProstaLund AB. Member of the Board of AB Fagerhult, Nordea Southern Region, Securitas AB and Sweco AB. Holds 9,000 class B shares.
Fredrik Arp, born 1953 Member of the Board since 1998. Vice Chairman since 2002. President and CEO of Trelleborg AB. Member of the Board of SSK AB and Trelleborg AB. Holds 1,666 class B shares
Bo Damberg, born 1937 Member of the Board since 1999. Director of Handelsbanken Bank. Chairman of Sandrew Metronome AB and the Åhlén Foundation. Member of the Board of the Swedish Securities Council, Isaberg Rapid AB, the Sandrew Foundation and Jan Wallander’s and Tom Hedelius’ foundation. Holds 3,000 class B shares
Leif Holmgren, born 1947. Deputy Representative Member on behalf of the Swedish Metalworkers’ Union since 1989. Employed by Getinge Disinfection AB.
Johan Malmquist
Johan Malmquist, born 1961. President and CEO. Employed since 1990. Holds 8,000 class B shares
Christer Mårdh
Kerstin Paulsson
Karl-Göran Olofsson
Mats Wahlström
Christer Mårdh, born 1952. Deputy Representative Member on behalf of the Swedish Union of Clerical and Technical Employees in Industry, SIF, since 2001. Employed by Getinge Disinfection AB
Kerstin Paulsson, born 1963. Member of the Board since 2000. President and partner of Netsoft Lund AB. Member of the Board of the Foundation for Knowledge and competency development.
Karl-Göran Olofsson, born 1957. Representative Member on behalf of the Swedish Union of Clerical and Technical Employees in Industry, SIF, since 2001. Employed by Getinge Sterilization AB. Holds 200 class B shares.
Mats Wahlström, born 1954. Member of the Board since 2000. President of Fresenius Medical Services. Member of the Board of Healthgrade, Inc. and ProstaLund AB. Holds 6,000 class B shares.
79
Group Management and Auditors
Johan Malmquist
Heribert Ballhaus
Christophe Hammer
Ulf Grunander
Micael Hedlund
GROUP MANAGEMENT
Johan Malmquist, born 1961. President and CEO. Employed since 1990. Holds 8,000 class B shares
80
Heribert Ballhaus, born 1952. Vice President business area Surgical Systems and President of Maquet AG. Employed since 2001. Holds 3,923 class B shares.
Christophe Hammer, born 1958. Vice President business area Infection Control and President of Lancer S.A. Employed since 1992.
Ulf Grunander, born 1954. Chief Financial Officer. Employed since 1993. Holds 5,000 class B shares
Micael Hedlund, born 1956. Vice President, group logistics and purchasing. Employed since 2000.
Albrecht Knauf
Michael Rieder
Mats Fredricson
Jan Nilsson
Mats Ottosson
AUDITORS
Albrecht Knauf, born 1951. Vice president business area Extended Care and President of Arjo International Employed since 1980. Holds 3,333 class B shares
Mats Ottosson, born 1962. Vice President business area Infection Control and President of Getinge Sterilization AB. Employed since 2001.
Micael Rieder, born 1952. Vice President business area Surgical Systems. Employed since 2001.
Mats Fredricson, born 1944. Authorized Public Accountant. Company’s auditor since 1989.
Jan Nilsson, born 1962. Authorized Public Accountant. Deloitte & Touche AB. Company’s auditor since 2000.
81
Addresses AUSTRALIA ARJO HOSPITAL EQUIPMENT PTY LTD
GETINGE/CASTLE CANADA LTD
ARJO EQUIPEMENTS HOSPITALIERS S.A.
154 Lytton Road, Bulimba Qld, 4171, E-Mail:
[email protected] Phone: +61 733 956 311 Fax: +61 733 956 712 President: Philip McLaughlin
1575 South Gateway Road, Unit C, Mississauga Ontario, L4W 531 E-Mail:
[email protected] Phone: +1 905 629 8777 Fax: +1 905 629 8875 President: Robert Bothwell
45, Avenue de l´Europe, Eurocit B.P.133, Roncq Cedex, FR-59346 E-Mail:
[email protected] Phone: + 33 320 281 313 Fax: + 33 320 281 314 President: Frank Robeers
CHINA GETINGE AUSTRALIA PTY LTD
154 Lytton Road, Bulima Qld, 4171 E-Mail:
[email protected] Phone: + 61 733 993 311 Fax: + 61 733 956 712 President: Philip McLaughlin
MEDITECHNIK GmbH - BADE-UND HILFSSYSTEME
Ernst-Befort-Str.4, Wetzlar, DE-355 78 E-Mail:
[email protected] Phone: +49 64 41 97 81-0 Fax: +49 64 41 9781 50 President: Dietmar Klas
HONG KONG
ALM/MAQUET CHINA
GETINGE FRANCE SAS
ARJO FAR EAST LTD
Shanghai Representative Office, Room 1607, Westgate Tower, No. 1038 West Nanjing Road, Shanghai, 200041 E-Mail:
[email protected] Phone: +86 21 6272 3742 Fax: +86 21 6272 4279 President: H.Ballhaus
BP 49, avenue du Canada, ZA de Courtaboeuf, Les Ulis, FR-91942 E-Mail:
[email protected] Phone: + 33 164 868 900 Fax: + 33 164 868 989 President: Alain Sayag
1001-03 APEC Plaza, 49 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong E-Mail:
[email protected] Phone: +852 2508 9553 Fax: +852 2389 5797 President: Samuel Wong
GETINGE INTERNATIONAL AB GUANGZHOU OFFICE
LANCER SNC
GETINGE/CASTLE ASIA LTD
30 Bd de l'Industrie,Tournefeuille, FR-31170 E-Mail:
[email protected] Phone: +33 561 151 111 Fax: +33 561 151 616 President: Christophe Hammer
Rm.1104, 11/F, China Aerospace Technology Centre 143 Hoi Bun Rd, Kwun Tong Kowloon, Hong Kong E-Mail:
[email protected] Phone: +852 2572 8032 Fax: +852 2838 4003 President: Dag Leff-Hallstein
AUSTRIA ARJO GmbH
Föhrenweg 5,Thaur, AT-6065 E-Mail:
[email protected] Phone: +43 522 349 3350 Fax: +43 522 349 3350 75 President: Robert Deschler
Room 1808, 18/F, Guanzhou Exchange Square, No. 268, Dong Feng Zhong Road 510030 Guangzhou E-Mail:
[email protected] Phone: +86 20 8351 10 65 Fax: +86 20 8351 10 66 President: Schilling Luo
IRELAND Northern Ireland
BELGIUM
CZECH REPUBLIC
ARJO HOSPITAL EQUIPMENT NV/SA
ARJO HOSPITAL EQUIPMENT SRO
PERISTEL SA
Ternesselei 248, Wommelgem, BE-2160 E-Mail:
[email protected] Phone: + 32 3 353 91 00 Fax: + 32 3 353 91 01 President: Frank Robeers
Strma 35, Brno, CZ-616 00 E-Mail:
[email protected] Phone: +420 5 49 25 42 52 Fax: +420 541 213 550 President: Milan Sovadina
7, avenue du Canada - BP 49, Courtaboeuf, Cedex, FR-91942 E-Mail:
[email protected] Phone: +33 1 64 86 89 70 Fax: +33 1 64 86 89 75 President: Alain Sayag
ARJO
19 Heron Road, Sydenham Business Park, Belfast, BT3 9LE E-Mail:
[email protected] Phone: +44 - 2890 502000 Fax: +44 - 2890 502001 President:Trevor Kennedy
DENMARK
GERMANY
Southern Ireland
GETINGE NV
GETINGE-KEMITERM A/S
Industrivej 6-8, Lynge, DK-3540 E-Mail:
[email protected] Phone: +45 4816 3333 Fax: +45 4818 9104 President: Claus Bengtsson
ARJO SYSTEME FÜR REHABILITATION GmbH
ARJO (IRELAND) LIMITED
Nijverheidsstraat 2, Wommelgem, BE-2160 E-Mail:
[email protected] Phone: +32 335 428 65 Fax: +32 335 428 64 President: Dirk De Decker
MAQUET & ALM BELGIQUE N.V.
GETINGE DANMARK A/S
GETINGE PRODUKTIONS GmbH
ARJO ITALIA SPA
Brusselstraat 182 - 184, Groot - Bijgaarden, BE- 1702 E-Mail:
[email protected] Phone: + 32 2 467 85 85 Fax: + 32 2 46 33 288 President: Luc de Groote
Firskovvej 23, Lyngby, DK-2800 E-Mail:
[email protected] Phone: +45 459 327 27 Fax: +45 459 341 20 President: Ole Mortensen
Zechenstrasse 12, Peiting, DE-86971 E-Mail:
[email protected] Phone: +49 8861 689-0 Fax: +49 8861 689-99 President: Alfred Heider
Via Poggio Verde, 34, Roma, IT-00148 E-Mail:
[email protected] Phone: +39 066 5 663 56 Fax: +39 066 5 663 212 President: Silvio Dinale
MEDIBO NV
GETINGE LUNATRONIC APS
Tordenskjoldsgate 27, Copenhagen K, DK-1055 E-Mail:
[email protected] Phone: + 45 33 33 88 55 Fax: + 45 33 33 88 70 President: Michael Lunau
GETINGE VAN DIJK MEDIZINTECHNIK GmbH
GETINGE SpA
Heikant 5, Hamont-Achel, BE-3930 E-Mail:
[email protected] Phone: +32 118 020 40 Fax: +32 118 016 26 President: Jos Bollen
CANADA
FINLAND
ARJO CANADA INC
GETINGE FINLAND Ab
HERAEUS MED GmbH
THE GETINGE SERVICE SpA
1575 South Gateway Road, Unit C, Mississauga Ontario, L4W 5J1 E-Mail:
[email protected] Phone: +1 905 238 7880 Fax: +1 905 238 7881 President: John Thiessen
Båtbyggarvägen 18, Helsinki, FI-00210 E-Mail:
[email protected] Phone: +358 968 241 20 Fax: +358 968 241 222 President: Peter Axberg
Heraeusstrasse 12-14, Hanau, DE-63450, E-Mail:
[email protected] Phone: + 49 7222 932-0 Fax: + 49 7222 932 855 President: Heribert Ballhaus
Via Poggio Verde, 34, Roma, IT-00148 E-Mail:
[email protected] Phone: + 39 0665 6631 Fax: + 39 0665 663 203 President: Silvio Dinale
Christof-Ruthhof-Weg 6, Mainz-Kastel, DE-552 52 E-Mail:
[email protected] Phone: +49 6134 186-0 Fax: +49 6134 186 209 President: Robert Deschler
B6 Calmount Park, Ballymount, Dublin 12 E-Mail:
[email protected] Phone: +353 1 4565565 Fax: +353 1 4565575 President:Trevor Kennedy
ITALY
Postfach 1125, Straelen, DE-47628 E-Mail:
[email protected] Phone: +49 283 491 330 Fax: +49 283 491 33 66 President: Harrie Van Dijk
Via Poggio Verde, 34, Roma, IT-00148 E-Mail:
[email protected] Phone: + 39 0665 6631 Fax: + 39 0665 663 203 President: Silvio Dinale
FRANCE
82
GESTION TECHNO-MÉDIC
ALM
MAQUET GmbH & CO.KG
MAQUET ITALIA S.P.A.
6900 Av. Choquette, St. Hyacinthe/Quebec, G2S8L1 E-Mail:
[email protected] Phone: +1 450 774 7948 Fax: +1 450 774 2335 President: Pierre Turner
Parc de Limère, Avenue de la Pomme de Pin Ardon, Orléans, Cedex 2, FR-45074 E-Mail:
[email protected] Phone: + 33 2 38 25 88 88 Fax: + 33 2 38 25 88 00 President: Dominique Lagouge
Kehler Strasse 31, Rastatt, DE-76437 E-Mail:
[email protected] Phone: +49 7222 932-0 Fax: +49 7222 932 855 President: Heribert Ballhaus
Via Volte n. 54, Cardano al Campo, IT-210 10 E-Mail:
[email protected] Phone: + 39 0331 26 20 66 Fax: + 39 0331 26 21 51 President: Andreas Kunze
JAPAN
SPAIN
MAQUET-GETINGE K.K.
ARJO SPAIN S.A.
GETINGE STERILIZATION AB
PEGASUS LTD
TFT Building East Wing 8th Floor, 3-1 Ariake, Koto-ku,Tokyo, 135-8071 E-Mail:
[email protected] Phone: +81 3 3599 8366 Fax: +81 3 3599 8365 President:Yuji Maeno
Calle San Rafael n 6, Alcobendas, Madrid, ES-28108 E-Mail:
[email protected] Phone: +34 91 49 00 636 Fax: +34 91 49 00 637 President: Frank Robeers
P O Box 69, Getinge, SE-310 44 E-Mail:
[email protected] Phone: + 46 35 15 55 00 Fax: + 46 35 549 52 President: Mats Ottosson
Pegasus House, Waterberyy Drive, Waterlooville, Hampshire, PO7 7XX E-Mail:
[email protected] Phone: + 44 23 92 784200 Fax: + 44 23 92 78442 President: Nicholas Bracey
GETINGE IBERICA SL
GETINGE SVERIGE AB
ARJO INC.
11, Route des 3 Cantons, Windhof, LU-8399 E-Mail:
[email protected] Phone: +352 263 070 01 Fax: +352 263 07060 President: Albrecht Knauf
C/ San Rafael, 6. Nave 8, Pol. Ind. de Alcobendas, Alcobendas , Madrid, ES-28108 E-Mail:
[email protected] Phone: +34 91 661 10 15 Fax: +34 91 661 10 42 President: Alain Sayag
P O Box 69, Getinge, SE-310 44 E-Mail:
[email protected] Phone: + 46 35 15 55 00 Fax: + 46 35 549 52 President: Peter Olsson
50 N. Gary Avenue, Roselle, IL 60172 E-Mail:
[email protected] Phone: +1 630 3076123 Fax: +1 630 307 6195 President: Ross Scavuzzo
NETHERLANDS
SOUTH AFRICA
ARJO NEDERLAND BV
GETINGE SOUTH AFRICA (PTY) LTD
LIC AUDIO AB
De Blomboogerd 8, 4003 BX TIEL Postbus 6116, HCTiel, NL-4000 E-Mail:
[email protected] Phone: +31 344 640 800 Fax: +31 344 640 885 President: Robert Burgers
P O Box 48492, Hercules, Pretoria, SA, 0002 E-Mail:
[email protected] Phone: +27 12 372 1370 Fax: +27 12 372 1282 President: Des Collins
P O Box 603, Upplands Väsby, SE-194 26 E-Mail:
[email protected] Phone: +46 8 590 00 450 Fax: +46 8 590 00 490 President: Claes Lund
GETINGE INTERNATIONAL AB – LATIN AMERICA OPERATIONS
USA
LUXEMBOURG ARJO INTERNATIONAL S.À.R.L.
8280 NW 27th Street, # 511, Miami FL 33122 Phone: + 1 305 447 9144 Fax: + 1 305 447 9979 President: Harald Castler
SWEDEN
SWITZERLAND
GETINGE B.V.
ARJO HOSPITAL EQUIPMENT AB
ARJO AG
GETINGE SOURCING LLC
Fruiteniersstraat 27, P.O. Box 1004 CA Zwijndrecht , NL-3330 E-Mail:
[email protected] Phone: + 31 78 6102 433 Fax: + 31 78 6101 582 President: Ronald J.A. van Franck
P O Box 61, Eslöv, SE-241 21 E-Mail:
[email protected] Phone: +46 413 645 00 Fax: +46 413 64 583 President: Albrecht Knauf/Johan Kåreby
Florenzstrasse 1D, Postfach, Basel, CH-4023 E-Mail:
[email protected] Phone: +41 61 337 97 77 Fax: +41 61 373 11 00 President: Robert Deschler
1777 East Henrietta Road, Rochester, NY 14623-3133 E-Mail:
[email protected] Phone: + 1 585 475 1400 Fax: + 1 585 272 5033 President: John Aymong
LANCER HOLLAND B.V.
ARJO SCANDINAVIA AB
ARJO INTERNATIONAL AG
GETINGE USA, INC.
Postbus (P O Box)33, ZG Wamel, NL-6659 E-Mail:
[email protected] Phone: +31 4875 18088 Fax: +31 4875 17978 President: Karel N Rietveld
P O Box 61, Eslöv, SE-241 21 E-Mail:
[email protected] Phone: +46 413 645 00 Fax: +46 413 64 583 President: Jan Löfving
Florenzstrasse 1D, Postfach Basel, CH-4023 E-Mail:
[email protected] Phone: +41 61 317 97 97 Fax: +41 61 373 11 00 President: Albrecht Knauf
1777 East Henrietta Road, Rochester, New Work, 14623-3133 E-Mail:
[email protected] Phone: + 1 585 475 1400 Fax: + 1 585 272 5033 President: Charles E. Carrier
MEDIBOL MEDICAL PRODUCTS BV
GETINGE AB
ARJO LTD
HERAEUS MEDICAL USA
Peperstraat 3-5,Valkenswaard, NL-5554 EG E-Mail:
[email protected] Phone: + 31 4020 44 296 Fax: +31 4020 19183 President: Jos Bollen
P O Box 69, Getinge, SE-310 44 E-Mail:
[email protected] Phone: +46 35 15 55 00 Fax: +46 35 15 56 40 President: Johan Malmquist
St. Catherine Street, Gloucester, GL1 2SL, E-Mail:
[email protected] Phone: + 44 1452 428 200 Fax: + 44 1452 428 337 President: Andy Gould/Mark Harwood
6764-A Preston Avenue, Livermore, CA-94550 Phone: +1 925 371 4155 Fax: +1 925 371 5929 President: Charles E. Carrier
GETINGE NORGE AS
GETINGE DISINFECTION AB
GETINGE SURGICAL SYSTEMS UK
LANCER SALES USA INC
Enebakk vn. 117, Oslo, NO-0680 E-Mail:
[email protected] Phone: +47 23 05 11 80 /+ 47 982 811 50 Fax: +47 23 05 11 99 President: Arne Corneliussen
P O Box 1505,Växjö, SE-351 15 E-Mail:
[email protected] Phone: +46 470 77 98 00 Fax: +46 470 208 32 President: Roland Karlsson
Colima Avenue, Hylton Riverside, Sunderland,Tyne & Wear, SR5 3XE E-Mail:
[email protected] Phone: + 44 191 516 9669 Fax: + 44 191 516 9662 President: Andrew Cserey
3543 State Road 419, Winter Springs, FL 32708 E-Mail:
[email protected] Phone: +1 407 327 8488 Fax: +1 407 327 1229 President: James Fry
GETINGE POLAND
GETINGE INTERNATIONAL AB
GETINGE UK LTD
PEGASUS AIRWAVE INC
Ul. Lirowa 27, Warsaw, PL-02-387 E-Mail:
[email protected] Phone: +48 22 88 20 626 Fax: +48 22 882 06 28 President: Jerzy Bartos
P O Box 69, Getinge, SE-310 44 E-Mail:
[email protected] Phone: + 46 35 15 55 00 Fax: + 46 35 16 63 92 President: Harald Castler
Orchard Way, Calladine Park, Sutton-In-Ashfield , Notts, NG 17 1JU E-Mail:
[email protected] Phone: +44 1623 510 033 Fax: +44 1623 440 456 President: Stephen Parrish
791 Park of Commerce Blvd, Boca Raton, FL-33431 E-Mail:
[email protected] Phone: +1 561 989 9898 Fax: +1 561 989 9640 President: Ross Scavuzzo
MAQUET S.E.A.
GETINGE SKÄRHAMN AB
PARKER BATH LTD
No. 20 Bendermeer Road, Unit 06-01/02, Singapore, 339914 E-mail:
[email protected] Phone: +65 6 296 1992 Fax: +65 6 296 1937 President: Heribert Ballhaus
Industrivägen 5, Skärhamn, SE-471 31 E-Mail:
[email protected] Phone: +46 304 60 02 00 Fax: +46 304 60 02 29 President: Gert Linder
Queensway, Steam Lane Industrial Estate, New Milton, Hampshire, BH25 5 NN
[email protected] Phone: + 44 1425 624031 Fax: + 44 1425 624019 President: Neil Carden
UNITED KINGDOM
NORWAY
POLAND
SINGAPORE
83
Getinge AB (publ.) P.O. Box 69, SE-310 44 Getinge, Sweden Phone: +46 35 15 55 00 Telefax: +46 35 549 52
[email protected] www.getinge.com
