Post on 10-May-2023
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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
NotificationShareholders wishing to participate at the Annual General Meeting
should be registered in the shareholders' register kept by Värde-
papperscentralen 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 reg-
istered 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 repre-
senting legal entities must have a copy of the registration certificate or a
corresponding authorization document that shows the proper authorized
signatory.
DividendThe 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 for-
ward the dividend to shareholders on 2 May 2003.
Reports for 2003Getinge 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
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 ReportThe 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, compe-
tition 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.
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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 . . . . . . . . . . . . . . . . . . . 14
Business area - Surgical Systems . . . . . . . . . . . . . . . . . . 24
Business area - Infection Control . . . . . . . . . . . . . . . . . 34
Getinge in society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Business processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
FINANCIAL INFORMATION
Directors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Financial risk management . . . . . . . . . . . . . . . . . . . . . . 52
Proposed allocation of profits. . . . . . . . . . . . . . . . . . . . 53
Consolidated income statement . . . . . . . . . . . . . . . . . 54
Consolidated balance sheet . . . . . . . . . . . . . . . . . . . . . 55
Consolidated cash flow statement . . . . . . . . . . . . . . . . 56
Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Notes to the consolidated accounts. . . . . . . . . . . . . . . 59
Income statement, parent company . . . . . . . . . . . . . . . 69
Balance sheet, parent company . . . . . . . . . . . . . . . . . . . 70
Cash flow statement, parent company . . . . . . . . . . . . . 71
Notes to the parent company’s accounts . . . . . . . . . . . 72
Auditors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
The Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Group management and auditors . . . . . . . . . . . . . . . . . 80
Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
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The year in brief
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)
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Five-year summary
The Group 1998 1999 2000 2001 2002
Net sales SEK m 4,345.0 4,884.7 5,253.5 8,148.2 8,640.1
of which overseas sales, % 94.5% 94.5% 95.0% 96.9% 96.9%
Operating profit SEK m 652.9 692.2 697.03) 974.0 1,049.5
Operating margin, % 15.0% 14.2% 13.3%3) 12.0% 12.1%
EBITDA margin, % 18.5% 18.0% 17.0% 16.5% 16.6%
Profit before tax, SEK m 602.6 636.2 623.7 750.4 875.6
Net profit for the year, SEK m 476.7 477.7 467.8 525.3 621.7
Operating capital, SEK m 2,610.6 2,988.2 3,356.8 6,592.8 6,528.7
Shareholders' equity, 31 December, SEK m 1,221.0 1,560.8 1,931.0 2,952.9 3,158.2
Return on operating capital, % 25.0% 23.2% 20.8%3) 14.8% 15.9%
Return on equity, % 39.1% 35.1% 27.6% 20.4% 21.1%
Net debt/equity ratio, multiple 1.41 0.97 1.92 1.36 1.07
Equity/assets ratio, % 27.6% 35.7% 24.2% 30.8% 33.5%
Interest cover, multiple 8.0 9.2 6.8 4.2 5.9
Net investments in fixed assets, SEK m 1) 131.8 167.4 110.3 180.9 149.6
No. of employees, 31 December 3,724 3,812 5,298 5,330 5,556
EPS, SEK 4) 10.20 10.22 10.01 10.60 12.32
Cash flow per share, SEK per share -0.29 9.35 1.91 -1.84 21.04
Shareholders' equity, SEK per share 26.12 33.39 41.31 58.51 62.58
Dividend, SEK per share 2) 3.25 3.50 3.50 3.75 4.252)
Market price, 31 December, SEK per share 122.00 96.00 112.50 172.00 178.00
Dividend yield, % 2.7% 3.6% 3.1% 2.2% 2.4%
No. of shares, 31 December 45,421,632 45,421,632 45,421,632 50,468,480 50,468,480
1) Excluding equipment hired out.
2) As per the proposal by the Board and President.
3) Excluding the refund from SPP of SEK 23.2 million
4) 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 Total assets, less liquid funds and non-interest-bearing provisions and liabilities, based on the average,
for the year
Return on operating capital Operating profit in relation to average operating capital.
Return on equity Net profit for the year in relation to average shareholders' equity.
EBITDA margin Operating profit before depreciations and amortisation in relation to net sales.
Dividend yield Dividend in relation to the market share price on 31 December.
Cash flow per share Operating cash flow after investments in tangible assets divided by the average number of shares.
Net debt/equity ratio Net debt in relation to shareholders’ equity, plus minority interests
Interest cover Profit after net financial items plus interest costs in relation to interest expenses
Operating margin Operating profit in relation to net sales
Equity/assets ratio Equity plus minority interests in relation to balance sheet total
EPS Net profit for the year divided by the average number of shares
6
Hygiene Systems covers ergonomicbathing and showering solutions.The products are adapted to differ-ent levels of mobility and forms ofresidential care. Research and devel-opment, as well as most of produc-tion, is located in Eslöv, Sweden.
Patient Handling systems covermobile and fixed solutions for liftingand transferring patients. Systemsare adapted for various levels ofmobility. Research and development,as well as most of production, islocated in Gloucester, UK.
Getinge’s Wound Care systemsencompass mattresses for preven-tion and treatment of pressuresores, specially adapted beds, as wellas products for heat treatment.Research and development, as wellas most of production, is located inWaterlooville, UK.
Hygiene Systems Patient Handling Wound Care
BUSINESS AREA EXTENDED CARE
• Systems for hygiene routines and the transfer of the elderly and disabled, as wellas products that prevent and treat pressure sores and bedsores.
• The product range covers bath, shower and hydrotherapy products, supportequipment for patient handling, and clinically-tested mattresses for the treatmentand prevention of pressure sores among people with diminished mobility.
BUSINESS SCOPE
• PRODUCT LEADERSHIP. To continuously develop and expand the marketthrough product development.
• INTEGRATED SOLUTIONS. The business area’s broad product range and a welldeveloped marketing organization with a consultative focus, will enable a widerrange of responsibility to be taken for the working environment and quality ofcare.
• DOCUMENTED CUSTOMER BENEFITS. The documented positive effects forcaregivers and care recipients will be the basis for what Getinge offers itscustomers and enable new financing and payment solutions, in which Getinge andcustomers share the risk.
STRATEGY
• Greater market penetration via an expanded sales organization and customertraining.
• 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: the business area has a central marketingorganization that coordinates global sales and marketing. 97% of sales are madevia the business area’s own sales companies. The business area has 330 salesrepresentatives 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 thanARJO.
PRIORITISED ACTIVITIES
MARKETING ORGANIZATIONAND BRANDS
CUSTOMER SEGMENTS ANDGEOGRAPHICAL MARKETS
Group overview Getinge is a world-leading supplier of medical equip-
ment 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 com-
panies 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 num-
ber of important acquisitions and the Group now con-
sists of a broad enterprise with three business areas.
NET SALES PER CUSTOMER SEGMENTAcute health care: 10%
Long-term care: 80%
Specialized care & home care 10%
NET SALES PER GEOGRAPHICAL MARKETWestern Europe: 60%
USA & Canada: 36%
Asia & Australia: 3%
Rest of the world: 1%
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Sterilization covers sterilizers forthe dental sector, health care,research and the pharmaceuticalindustry, as well as system accessories and computerized documentation systems. Researchand development, as well as most ofproduction, is located in Getinge,Sweden.
Disinfection covers flusher disinfec-tors for health care and long-termcare, and washer disinfectors forhealth care, research and thepharmaceutical industry. Researchand development, as well as most ofproduction, is located in Växjö,Sweden, and Toulouse, France.
Disinfection Sterilization
BUSINESS AREA INFECTION CONTROL
• Complete systems to prevent the onset and spreadof infection for health care, long-term care and thepharmaceutical and medical technical industries.
• The product range covers disinfectors, sterilizers,documentation systems and ancillary equipment, aswell as service and consulting.
• World-leading position with own representation inall its important markets.
• COST LEADERSHIP. To utilize the business area’sworld-leading position to maintain the sector’slowest manufacturing costs through efficientproduction and effective distribution.
• INTEGRATED SOLUTIONS. To position theGetinge brand as the sector’s best solution provider,where Getinge’s broad product range and expertisewill benefit customers.
• SERVICE. To utilize Getinge’s well developedservice network as a competitive advantage,through actively bundling and marketing innovativeservices.
• Strengthen and position Getinge as a systemsupplier.
• Improve the manufacturing structure.
• Develop the organization.
• Increase investments in developing products formaterial handling, ergonomics, low-temperaturesterilization and disinfection.
• Expand the service organization.
• MARKETING ORGANIZATION: the business areahas a central marketing organization based inGetinge. 90% of sales are made via the businessarea’s own sales companies. The business area has200 sales representatives and 600 servicetechnicians.
• BRANDS: the business area works primarily underone strategic brand – Getinge.
NET SALES PER CUSTOMER SEGMENTAcute heath care: 60%
Long-term care: 10%
Industry: 30%
NET SALES PER GEOGRAPHICAL MARKETWestern Europe: 46%
USA & Canada: 38%
Asia & Australia: 10%
Rest of the world: 6%
The surgical table range coversboth fixed tables with integratedpatient transport solutions andmobile tables. Research and devel-opment, as well as production, areconcentrated at Rastatt, Germany.
The surgical light range is amongthe very best available.We were thefirst to use gas as a light source,which offers many benefits. Most ofproduction is carried out in Ardon,France.
Getinge’s ceiling service units areused for various types of medicalapparatus needed in the proximityof a surgical workstation, e.g. equip-ment for anaesthesia and screensfor image guided surgery.
Surgical Tables Surgical Lights Ceiling Service Units
BUSINESS AREA SURGICAL SYSTEMS
• Complete systems for surgical workstations, operating rooms and specializedclinics.
• Products for intensive care.
• The product range covers surgical tables, surgical lights and ceiling service unitsfor various types of medical equipment.
• PRODUCT LEADERSHIP. The business area will be a leader in quickly meetingnew customer demands with adapted products, in a sector characterised by rapidchange.
• INTEGRATED SOLUTIONS. To provide integrated solutions in which theindividual products combine to create the best in ergonomics, efficiency andsafety.
• SERVICE. The industry’s best and fastest service coupled with top-qualityproducts, will guarantee maximum availability of operating rooms.
• 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 workplacesfor surgery and radiology.
• Increase market shares in the US and Japan.
• MARKETING ORGANIZATION: the business area has a central marketingorganization based in Rastatt, Germany. 70% of sales are via the business area’sown sales companies. The business area has 200 sales representatives and 250service technicians.
• BRANDS: the business area works under three strategic brands – Maquet, ALMand Hanau.
NET SALES PER CUSTOMER SEGMENTAcute health care: 100%
NET SALES PER GEOGRAPHICAL MARKETWestern Europe: 58%
USA & Canada: 20%
Asia & Australia: 16%
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 cus-
tomers, products and services that contribute to reduced care costs
and improved quality of care.
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 rationali-
zation 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, efficien-
cy-improvement measures for production and marketing continued
during the year, and there was an improvement in terms of prof-
itability 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 mil-
lion, a climb of 17%. The positive profit trend means that we can pro-
pose 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
workstations. We offer the market’s most comprehensive and sophis-
ticated range of products and services for handling sterile and disin-
fected 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
In general, the demand for medical equipment and products is grow-
ing 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 deep-
er 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 suc-
cessfully integrate the acquired companies into our business struc-
ture 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 manufac-
tured 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
the market, with a strong product range and a good marketing organ-
ization. Despite a weaker sales trend, profitability has developed sat-
isfactorily, above all because of enhanced cost-effectiveness in pro-
duction 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 develop-
ment will be concentrated on those product segments where we are
currently underrepresented, such as ceiling hoists, and light, easy-to-
use 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 market-
ing organization, whose main focus will continue to be on our pres-
ent 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 effec-
tive 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.
Johan Malmquist
9
area, both in terms of our manufacturing structure and sales and mar-
keting. 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 devel-
opment, 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 steriliz-
ers that are close to the user, and efficient solutions for temperature-
sensitive instruments, as well as solutions that optimise goods hand-
ling 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 profitabil-
ity, 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 subcon-
tractors. This change will result in considerable improvements in
competitiveness and profitability.
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
10
Aims and strategies
Getinge's solutions are an important element in addressing the chal-
lenges 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-lead-
ing supplier, Getinge can help to meet these challenges by develop-
ing 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 posi-
tions 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.
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 dis-
tribution, sales and marketing of the business area's products. For
North America, the Group has a joint marketing, sales and mainte-
nance 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 com-
petence 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 soft-
ware, customers can benefit from a quality-assured process for hand-
ling sterile goods. Customers within industry, primarily pharmaceu-
Business concept – a competent solution provider
Getinge is a medical technical Group that through its products and services shall be a com-
petent 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 cho-
sen 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.
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 (key-
hole 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 serv-
ices 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 trans-
fer and hygiene solutions leads to improved quality of life for resi-
dents 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 manu-
facturing facilities in nine countries. The business units’ manufactur-
ing 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 qual-
ity assurance. The supplier base for the Infection Control and
Surgical Systems business areas is mainly in North and Central
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Getinge’s growth is the result of aclear and consistently implementedniche strategy, with a focus on product development and activemarketing, complemented by acquisitions.
The Getinge Group’s sales performance since it became a listed company in 1993, SEK m
12
Net sales per business area
Infection Control: 40 %
Extended Care: 31 %
Surgical Systems: 29 %
Operating profit per business area
Infection Control: 29 %
Extended Care: 47 %
Surgical Systems: 24 %
Europe, whereas the Extended Care business area already has a sig-
nificant 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 com-
panies. 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 after-
market 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 com-
plementary 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 geo-
graphical 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 dif-
ference in product quality between the various manufacturers.
Knowledge, service and partnership will therefore become decisive
competitive parameters in the future. Getinge is already well posi-
tioned in these areas, and further investments are being made contin-
ually.
Future expansion
The acquisitions that have characterised much of Getinge's expan-
sion in recent years are an important complement to internally-gen-
erated 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 innova-
tive 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 Group’s sales per
geographical market:
2002 2001
Sweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 3%
Rest of the Nordic countries . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 2%
Rest of Western Europe . . . . . . . . . . . . . . . . . . . . . . . . 48% . . . . . . . . . . . . 48%
Eastern Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% . . . . . . . . . . . . . 2%
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32% . . . . . . . . . . . . 33%
Asia & Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9% . . . . . . . . . . . . . 9%
Rest of the world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2% . . . . . . . . . . . . . 3%
Total 100% 100
Infection Control Surgical SystemsExtended Care
SALES & MARKETING
PRODUCT DEVELOPMENT & PRODUCTIONHygiene Systems Patient Handling Wound Care
SALES & MARKETING
PRODUCT DEVELOPMENT & PRODUCTIONDisinfection Sterilization
SALES & MARKETING
PRODUCT DEVELOPMENT & PRODUCTIONSurgical Tables Surgical Lights Ceiling Service Units
The Getinge Group’s business areas
500
1000
1500
2000
80
100
120
140
160
180
200
220
JAN02
FEB MAR APR MAJ JUN JUL AUG SEP OCT NOV DEC
Shares
Afv General index
No. of shares tradedin 000s(incl. after-market)
(c) SIX
13
Getinge's shares
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 per-
centage of foreign-owned shares amounts to 33.2% (32.7%) . The
percentage of institutional ownership is 41.5% (42%) of which equi-
ty funds constitute 14.8% (15%).
Share capital and ownership structure
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.
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, approxi-
mately 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.
SHAREHOLDER STRUCTURE OF GETINGE AB ON 28 DECEMBER 2002 1
Holding Ownership % Share holding%1-500 79.7 4.2501-1.000 10.5 2.61.001-10.000 8.3 6.810.001-100.000 1.0 10.1100.001-10.000.000 0.5 76.3
DEVELOPMENT OF SHARE CAPITAL Number of shares Share capitalYear Transaction after transaction after transaction1990 Formation 500 50,0001992 Split 50:1, nom SEK 100 to SEK 2 25,000 50,0001992 Directed new issue 5,088,400 10,176,8001993 Directed new issue 6,928,400 13,856,8001995 Non-cash issue 15,140,544 30,281,0881996 Bonus issue 2:1 45,421,632 90,843,2642001 New issue 1:9 at SEK 100 50,468,480 100,936,960
LARGEST SHAREHOLDERS AS OF FEBRUARY 2003, including known changes1
No. of class No. of class % of % of Company A shares B shares capital voting rightsCarl Bennet companies 3 375 540 3 755 031 14.1 46.4Robur’s equity funds 4 294 473 8.5 5.3Latour 3 565 000 7.1 4.4Alecta 1 324 133 2.6 1.6AFA Insurance 1 060 200 2.1 1.3SHB 1 004 800 2.0 1.2SHB funds/life 947 834 1.9 1.2Skandia 883 776 1.8 1.2Govt of Singapore 737 170 1.5 0.9Industritjänstemannaförb 652 050 1.3 0.8Other 28 868 473 57.1 35.7Total 3 375 540 47 092 940 100.0 100.0
SHARE CAPITAL BREAKS DOWN AS FOLLOWS:Number Number % of % of
Type of share of shares of votes capital voting rightsA 3,375,540 33,755,400 6.7% 41.8%B 47,092,940 47,092,940 93.3% 58.2%Total 50,468,480 80,848,340 100.0% 100.0%
1. Source.VPC and SIS owner service
14
Extended Care 1998 1999 2000 2001 2002
Orders received, SEK m 1,714.1 1,981.6 2,137.7 2,643.9 2,703.1
Net sales 1,663.0 2,007.7 2,110.9 2,655.5 2,720.0
Share of Group’s net sales 38.3% 41.1% 40.2% 32.6% 31.5%
Gross profit 888.7 1,051.6 1,042.3 1,307.1 1,387.9
Gross margin, % 53.4% 52.4% 49.4% 49.2% 51.0%
Operating costs, SEK m -605.8 -731.2 -719.3 -885.8 -900.3
Operating profit 282.9 320.4 323.0 421.3 487.6
Share of Group’s operating profit 43.3% 46.3% 46.3% 43.3% 46.5%
Operating margin, % 17.0% 16.0% 15.3% 15.9% 17.9%
No. of employees 1,306 1,383 1,559 1,594 1,647
FIVE-YEAR SUMMARY
Business Area Extended Care
15
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 busi-
ness area’s training programme, which covers ergonomics and work-
ing 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 logis-
tics and reduced tied-up capital continued according to plan in 2002
and is expected to be completed in 2003.
The Extended Care business area is a world-leading suppli-er of hygiene systems and lifting and transfer aids for long-term care, and also offers specialised mattresses for woundcare. The roots of the business area stem from the early1960s, when the first hygiene systems and lifters were pro-duced. Nowadays we offer our customers the widest andmost sophisticated range of products and services on themarket.
Our market share is around 20% of the global market,which is estimated at SEK 12 billion, with a 60% marketshare for hygiene systems, 40% for patient handling and 6%for wound care.We have a global marketing organization of24 sales companies and sales in a further 40 countries viaour network of distributors.
ManagementThe Extended Care business area consists of three business units; hygienesystems, 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 business area’s customer base isin the institutional care sector andconsists mainly of nursing homes, var-ious types of residential elderly carefacilities and hospitals.
The market
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 strat-
egy. 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 knowl-
edge 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 intro-
ducing 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 num-
ber 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 addi-
tion 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 pop-
ulation being in need of care and professional nursing. The underly-
ing 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
17
Our customers
The Extended Care business area’s customer base is solely in the care
sector and consists of nursing homes, various types of residential eld-
erly 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 hav-
ing to confront major issues due to demographic trends and the
increased number of overweight people. The rising number of elder-
ly 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 person-
nel, and the consequences are staff shortages, an even heavier work-
load and high wage inflation.
Extended Care’s overall offer means that the working environ-
ment is improved through the use of ergonomically designed equip-
ment for daily activities such as patient transfers from bed to wheel-
chair or toilet, etc, and solutions for bathing and showering. One per-
son 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 show-
ering. In short, their quality of life is improved. We also offer our cus-
tomers 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 them-
selves 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 cor-
rect working techniques and advice to architects who design nursing
homes and hospitals.
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 regard-
ing quality, functionality and design. However, the decisive factor for
the customer is not individual product’s performance. On the con-
trary, it is becoming increasingly important to present complete solu-
tions. Here the decisive factor is not individual products, but what
results the combined measures such as assessments, products, train-
ing 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 distribu-
tors, 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
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 develop-
ment 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
Innovative, proactive product development is one of the cornerstones of the business area’s long-term strategy.
19
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 dif-
ferent activities. One of the trends in long-term care is towards private
bathrooms for individual use instead of large central facilities. This cre-
ates 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 con-
siderable synergies in production, purchasing and design – a fact
clearly reflected in our profit for 2002. Constantly improving com-
petitiveness is a prerequisite if the business area is to continue to per-
form well in terms of both sales volumes and profit. During the year
as part of this drive, we moved elements of production that had pre-
viously been based in the US to Eslöv. In 2002 we also established
delivery times that are based on market requirements and raised aver-
age 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 sup-
pliers, 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 logis-
tics 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.
Production in the business area is focused on a number of core
areas such as surface finishing and assembly.
Quality
The business area’s products are designed to handle elderly and dis-
abled people. That is why the utmost emphasis is placed on our prod-
uct quality being of the highest standard in terms of functionality and
safety. Concern for quality and safety is therefore something that per-
meates the entire chain from development and design to production.
All of the business area’s main plants have ISO certified quality sys-
tems 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 pur-
suing 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 coop-
erated 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 indi-
vidual competence development plan. The number of training days at
the production units increased by 30%.
2003 – activities for increased growth
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, par-
ticularly 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.
WORLD MARKET Product segment Hygiene Systems Patient Handling Wound CareValue SEK 1,700 m SEK 2,000 m SEK 8,000 mGrowth, % approx. 5 8-10 approx. 5Getinge’s market share, % 60 40 6
MARKET TRENDSOrders received per market 2002 2001 ChangeUSA & Canada 934.0 962.8 -3.0%UK 724.7 737.2 -1.7%Germany 284.3 271.5 4.7%Rest of Western Europe 652.5 579.0 12.7%Rest of the world 107.6 93.4 15.2%Business area total 2,703.1 2,643.9 2.2%Changes adjusted for acquisitions and currency-related effects 4.7%
NET SALES PER MARKETWestern Europe: 60%USA & Canada: 36%Asia & Australia: 3%Rest of the world: 1%
NET SALES PER CUSTOMER SEGMENT Acute health care: 10%Long-term care: 80%Specialized care & home care 10%
DISTRIBUTIONOwn sales companies: 98%Distributors: 2%
21
EXTENDED CARE: SUMMARY
22
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 height-
adjustable 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.
Rhapsody Parker Bath Freedom Bath
BATHING SYSTEMS
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 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.
Carendo Concerto Prelude
SHOWERING SYSTEMS
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 peo-
ple 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.
Axona Entroy Sidekick
THERAPY SYSTEMS
PRODUCT OVERVIEWEXTENDED 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 effi-
ciency, 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 regula-
tions and directives.
In 2003 all production plants in
Extended Care will be certified for envi-
ronmental management in accordance
with ISO 14001.
23
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-to-
use 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.
Opera with stretcher Opera Tempo Trixie Lift Bianca
PASSIVE LIFTERS
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.
Encore Chorus Sarita Stedy Exelsior
ACTIVE LIFTERS
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 offers a cost-
effective 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 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 is a prophylactic
mattress that considerably reduces
bodyweight and thus lowers the risk
of pressure sores appearing.
Trinova Bi-Wave Carer Paragon 5000 Pegasus Inditherm System Kombat K2
WOUND CARE PRODUCTS
24
Surgical Systems 2000 2001 2002
Orders received, SEK m 157.8 2,262.8 2,589.6
Net sales, SEK m 146.6 2,223.4 2,520.8
Share of Group’s net sales 2.8% 27.3% 29.2%
Gross profit 44.4 1,106.2 1,200.5
Gross margin, % 30.3% 49.8% 47.6%
Operating costs, SEK m -45.4 -877.8 -945.6
Operating profit -1.0 228.4 254.9
Share of Group’s operating profit -0.1% 23.4% 24.3%
Operating margin, % -0.7% 10.3% 10.1%
No. of employees 76 1,372 1,499
THREE-YEAR SUMMARY
Business Area Surgical Systems
25
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 mar-
kets, reported strong volume growth. Operating profit also developed
satisfactorily and increased by 11.6%. The slight decline in the oper-
ating 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 pro-
gramme 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 sur-
gery, and the Axcel and G8 surgical lights.
The Surgical Systems business area is the world-leading sup-plier of surgical workstations.The product range consists ofsurgical tables, surgical lights and ceiling service units formedi-tech equipment. Our first surgical table was sold morethan 160 years ago.
Our market share is around 40% for surgical tables andsurgical lights, and about 15% for ceiling service units. Theglobal market for these types of products is estimated atSEK 7.4 billion.We have a global marketing organization withsales in more than 100 countries.
ManagementThe Surgical Systems business area consists of three business units; surgicaltables, surgical lights and ceiling service units for medi-tech equipment.Thehead of the business area is Heribert Ballhaus. Sales and marketing iscoordinated by a global marketing organization, which is headed byMichael Rieder.
Heribert Ballhaus Michael Rieder
The business area’s customers aresurgeons and other medical staff atacute care hospitals around the world.
27
Our customers
Technological advances and the demographic trend towards an age-
ing population have resulted in an increasing number of surgical pro-
cedures being performed around the world. In the US alone, 24 mil-
lion operations were performed in 2002 according to the FDA, and
that figure is expected to rise by 5% annually. Operations are hospi-
tals’ 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 perform-
ance 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 spe-
cializations 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 moni-
toring equipment and delivery of medical gases.
The surgical tables, which are available as mobile or fixed sys-
tems, 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, includ-
ing a completely new technology that uses gas. This innovation
delivers superior lighting, but with considerably lower energy con-
sumption 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 medi-
tech equipment required in the proximity of a surgical workstation,
and deliver medical gases, such as those used in anaesthesia. The busi-
ness 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 techni-
cal 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 10-
15%. 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 compe-
tence and know-how is paramount for our business area’s marketing
organization. Our sales teams are made up of highly qualified per-
sonnel, whose detailed knowledge of health care, surgery and tech-
nology 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 consul-
tative 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 meet-
ing 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 sur-
gery, 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
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 polyclin-
ic 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 world-
class service unit.
Trends
The demographic trend towards a growing percentage of elderly peo-
ple 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 rehabil-
itation resulting in considerable cost savings. Image guided surgery
also means that diagnostics becomes an integrated part of the surgi-
cal 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 pro-
cedures. Competition between different clinics and hospitals is get-
ting tougher, and investments are being concentrated on profitable
medi-tech equipment that ensures optimal results from operations.
Product positioning
The business area’s products and services are among the best on the
market and are strategically positioned as innovative, process-
enhancing 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.
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.
Prioritised areas for thebusiness area’s product
development are solutions forendoscopy and image guided
surgery, where demand isgreatest.
29
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 concen-
trated at Rastatt, Germany, and at Ardon, France, for surgical lights
and ceiling service units.
All development takes place in close collaboration with our cus-
tomers 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 cri-
teria, products positively contribute to the overall economy of the
hospital.
Production
Heræus Med, acquired in Q2 2002, is currently undergoing an exten-
sive 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-
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 competi-
tiveness. In 2002 Getinge signed an agreement for the sale of the sur-
gical 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 pro-
duction facilities are strategically placed for several of its key mar-
kets. 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.
Surgical System’s production will beconcentrated at Rastatt, Germany and
Ardon, France, during 2003.
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 vig-
orously 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 broad-
en and strengthen the business area’s position.
WORLD MARKET Product segment Surgical Tables Surgical Lights CSU*Value SEK 4,200 m SEK 2,100 m SEK 1,100 mGrowth, % 5 5 10-15Getinge’s market share, % 42 39 17
MARKET TRENDSOrders received per market 2002 2001 ChangeUSA & Canada 548.7 427.9 28.2%UK 155.5 116.3 33.7%Germany 580.5 590.8 -1.7%Rest of Western Europe 733.6 620.6 18.2%Rest of the world 571.3 507.2 12.6%Business area total 2,589.6 2,262.8 14.4%Changes adjusted for acquisitions and currency-related effects 4.0%
*Ceiling Service Units
SALES PER MARKETWestern Europe: 58%USA & Canada: 20%Asia & Australia: 16%Rest of the World: 6%
SALES PER CUSTOMER SEGMENTAcute health care: 100%
DISTRIBUTIONOwn sales companies: 70%Distributors: 30%
31
SURGICAL SYSTEMS: SUMMARY
32
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, ope-
rations 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 sur-
gical table and a tomography scanner and
thus combines the two disciplines of surge-
ry and radiology. There are many applica-
tions: 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 opera-
ting rooms as well as emergency depart-
ments.
AWIGS consists of a movable surgical
table with two support pillars and offers the
possibility to manoeuvre the entire screen-
able table into the integrated tomography
scanner.
Studies show that patients are moved as
many as nine times from arrival at the hos-
pital 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 speciall-
ly developed carrier can take heavy weight
patients and is motorized.
The patient is carefully moved from the
carrier, which can also function as a surgi-
cal table for immediate use, into the tomo-
graphy 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 con-
cept 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.
AWIGS & VIWAS – LEADING-EDGE SURGICAL TECHNOLOGY
PRODUCT OVERVIEW SURGICAL SYSTEMS
33
Getinge’s surgical tables are established worldwide via a broad product rangeand unique functionality for general surgery. One of the biggest success fac-tors is the possibility to customize solutions for different types of specializedsurgery, from opthamology to orthopaedics. Surgical tables are always height-adjustable for good ergonomics.There are also extensive options for adapta-tion to various types of surgery in order to create an environment in theoperating room that is as efficient and ergonomic as possible. Getinge’s sys-tems for surgical tables have been developed to provide maximised efficiency
in terms of utilization of the operating room and flexibility for various typesof specialized surgery. The surgical tables consist of a support pillar, which isfixed to the floor of the operating room, and a movable top section. Whileone patient undergoes an operation, the next patient can be prepared for sur-gery.When an operation is completed, the next patient can be taken in as soonas the operating room has been cleaned. In this way, the hospital’s resourcesas utilized to the maximum.
There are two main types of surgical light: one of the solutions is to illuminatethe entire surgical working area with a single light source. This form of surgi-cal light is preferred in the Asian and North American markets, as well as inseveral European countries. The latest lights of this type are equipped withcameras for documentation and detailed imaging. The other type of lighting
solution consists of several lights, which produce an optimal lighting situationin the operating room.This technology is preferred above all in a large num-ber of European countries and is also becoming more popular in the Japanesemarket.This type of light can also be fitted with cameras for documentationand detailed imaging.
Ceiling service units are used both in intensive care and operating rooms. Inintensive care they are used to hold technical equipment that must be inclose proximity to the patient. Medical gases and power supply can be inte-
grated in the ceiling service units. Ceiling service units bring these aids with-in constant reach when needed, but allow them to be simply moved out ofthe way when not in use.
SURGICAL TABLES
SURGICAL LIGHTS
CEILING SERVICE UNITS
34
Infection Control 1998 1999 2000 2001 2002
Orders received, SEK m 2,524.1 2,884.5 2,887.0 3,404.1 3,440.3
Net sales 2,615.7 2,811.1 2,934.6 3,204.3 3,359.3
Share of Group’s net sales, % 60.2% 57.5% 55.9% 39.3% 38.9%
Gross profit 1,028.8 1,084.6 1,142.7 1,142.7 1,215.8
Gross margin, % 39.3% 38.6% 35.7% 35.7% 36.2
Operating costs, SEK m -665.8 -719.3 -821.9 -821.9 -909.9
Operating profit 363.0 365.4 368.5 320.8 305.9
Share of Group’s operating profit 55.6% 52.8% 52.9% 32.9% 29.1%
Operating margin, % 13.9% 13.0% 12.6% 10.0% 9.1%
No. of employees 2,358 2,371 2,327 2,312 2,364
FIVE-YEAR SUMMARY
Business Area Infection Control
35
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 pro-
duction. 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 pro-
gramme 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 posi-
tive impact on profit in both 2003 and 2004.
The Infection Control business area is the world’s leadingsupplier of sterilizers and disinfectors for the hospitalmarket and the pharmaceutical industry.We sold our firststerilizer in 1932, and today we offer our customers thewidest and most sophisticated range of products andservices on the market.
Our market share is around 25% of the global market,which is estimated at SEK 10 billion.We have a globalmarketing organization with sales in more than 80countries.
ManagementThe Infection Control business area consists of two business units:sterilization and disinfection.The head of product development andproduction is Mats Ottosson. Sales and marketing is coordinated by aglobal marketing organization, which is headed by ChristopheHammer.
Mats Ottosson Christophe Hammer
The business area’s customers are involved in healthcare, industry and the research sector.The commonelement among these different customers is a need tosterilize and disinfect critical goods.
37
Our customers
The Infection Control business area has two main customer cate-
gories: the care sector and industry.
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 compli-
cations for a sick or elderly person. More patients, resistant bacteria
types and fewer resources within the care sector mean that the prob-
lem 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 infection-
route. 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 disin-
fectors 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 auto-
claves.
Today there is an increasing need to be able to plan, control and
document the handling of circulating goods. We have therefore devel-
oped software (T-DOC) that enables the hospital to control its sterile
goods at all times, and therefore achieve effective planning of its activ-
ities. There are other areas that are of utmost importance to our cus-
tomers; 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 regard-
ing capacity and security levels vary considerably from customer to
customer, and therefore each system is tailored to meet specific cus-
tomer’s unique requirements.
The market
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 after-
market. 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%.
A global marketing organization
Our basic strategy includes a strong ambition to be close to our cus-
tomers. 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 representa-
tives and 600 service technicians give us an important and direct
interface with our customers. In 2002 the work to concentrate mar-
keting 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 hos-
pitals are joining together in different constellations to make pur-
chasing 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 differen-
tiate 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.
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 com-
petitor 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.
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 coordi-
nated. 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 modulari-
sation 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-
Product development will be focused on areas such as effective low-temperature sterilization, point-of-use applications, and solutions that improve logistics and ergonomics.
39
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 insti-
tutions was completed. These will be launched in Q1 of 2003. This
new generation combines cost-effective production and highly effi-
cient 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 start-
ed 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 pro-
duction 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 pro-
ceeded completely according to plan and has required relatively
small investments in machine capacity to meet the increased work-
load 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 arrange-
ment 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 cur-
rently 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 gen-
erate 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 ele-
ments 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 adap-
tation of thin sheet metal, welding and final assembly. External sup-
pliers are used for sub-assembly and surface finishing. The propor-
tion of external manufacturing will grow in future as production vol-
umes increase, in order to optimise our resources and develop our
Production of sterilization products in 2002 wascharacterised by major changes in the global
manufacturing structure with an overall aim tomake the structure more efficient and thereby
improve our competitiveness.
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 com-
petitiveness.
Logistics
The business area has just started a project that aims to make further
improvements in competitiveness by bringing down costs for distri-
bution 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.
Quality – working for continuous improvement
Our products are a central and critical part of our customers’ activi-
ties. 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 sub-
contractors 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
as our knowledge exchange at the Getinge Academy, and learn some-
thing more every day about our customer’s needs and wishes. Their
situations are also constantly changing and this creates new require-
ments that lead to new opportunities for us as a supplier. The busi-
ness 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.
WORLD MARKET Product segment Sterilization DisinfectionValue SEK 6,500 m SEK 3,500 mGrowth, % 4 5Getinge’s market share, % 24 27
MARKET TRENDSOrders received per market 2002 2001 ChangeWestern Europe 1,546.1 1,465.1 5.5%USA & Canada 1,346.3 1,451.1 -7.2%Asia & Australia 368.4 325.7 13.1%Rest of the world 179.5 162.2 10.7%Business area total 3,440.3 3,404.1 1.1%Changes adjusted for acquisitions and currency-related effects 3.9%
NET SALES PER MARKETWestern Europe:: 46%USA & Canada: 38%Asia & Australia: 10%Rest of the world: 6%
NET SALES PER CUSTOMER SEGMENTAcute health care: 60 %Long-term care: 10 %Industry 30 %
DISTRIBUTIONOwn sales companies: 90 %Distributors: 10 %
41
INFECTION CONTROL: SUMMARY
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 steriliza-
tion centres and their flow systems. These
systems, which have been tested over
decades with good results worldwide, pro-
vide the greatest economic utilization of the
hospital’s resources, as well as good infec-
tion control.
Getinge has developed special
computerized guidelines relating to the
design and calculation of capacity for vari-
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 devel-
oped for the laboratory and pharmaceutical
industry customer segments.
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.
42
A WELL-THOUGHT-OUT CONCEPT
PRODUCT OVERVIEW INFECTION CONTROL
COMPLETE SYSTEMS
43
GE 606 is a flusher disinfector for
bedpans and urine bottles used in
long-term care.The unique top-
loading version has an ergonomic
design and many applications.
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.
GE 606 1345 GE 4656 GE 8666 Lancer PCM
FLUSHER AND WASHER DISINFECTORS
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 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).
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.
HS 11 / HS 22 HS 33 HS 66 HS 69 Lab Industrial autoclaves
STERILIZERS
T-DOC documentation and tracking
system for increased efficiency and
quality assurance in health care.
Billy is an ergonomic, height-
adjustable 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.
T-DOC Billy SL 60 AGS Technical service
ACCESSORIES
44
A company that is growing and changing rapidly
Getinge’s development has been very positive since it became a list-
ed 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 consid-
erable 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 num-
ber 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.
• 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 cus-
tomers. 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 work-
ing 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 eas-
ier 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’ every-
day work that we can make it easier for them and create more effi-
cient solutions.
The Group initiated a programme of customer surveys in 2002 to
provide a structured way of gathering information on what our cus-
tomers think about our products and services, and what they would
like to see us improve even more.
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
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 rou-
tines. 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 proj-
ects currently in progress, the product is carefully analysed in order
to maximise its recyclability. Recycling stations for manufacturing-
related 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 activelycontribute towards a better environmentand 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 environmentally-
hazardous chemicals are gradually replaced in order to meet new
environmental regulations. To sum up, Getinge works from the stand-
point of creating the greatest possible benefit at the lowest possible
cost from the financial perspectives of both the company and socie-
ty. 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 hospi-
tal's, care institution's and industry's purchasing and management
functions, but also patients and residents, and hospital staff and care-
givers of all types. It is in these meetings, face to face, that business
is lost or won. A natural consequence is that matters affecting recruit-
ing, further training and staff development must mainly be run local-
ly on the basis of local conditions, but within the framework of over-
all 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 contin-
uously developing competence as well as deepening and supporting
team spirit in the organization. Employees are offered regular oppor-
tunities for personal development. The Getinge and Maquet
Academies are run within the Group and between 2,000-3,000 cus-
tomers, agents and employees participated in various types of cours-
es in 2002.
The Getinge Group also has contacts with universities and col-
leges in order to bring about an exchange of knowledge and expe-
rience 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.
47
V E R K S A M H E T S B E R Ä T T E L S E
2002 2001
Total number of employees on 31 December 5,556 5,330
Number of employees in Sweden on 31 December 877 820
Added value per employee in the financial year, SEK 720,000 690,000
Number of men employed, % 79 80
Number of women employed, % 21 20
Number of employees aged 20-30, % 16 16
Number of employees aged 31-40, % 35 36
Number of employees aged 41-50, % 28 28
Number of employees aged 51-60, % 18 17
Number of employees aged 61-70, % 2 3
Number of employees per business area, %: Infection Control 39 44
Extended Care 30 30
Surgical Systems 31 26
Geographical distribution of employees, %: Sweden 16 16
Rest of Nordic countries 1 1
Rest of Western Europe 52 55
North America 27 24
Eastern Europe 1 1
Asia & Australia 2 2
Africa 1 1
PERSONNEL – AN OVERVIEW
48
Business processes
The Getinge Group’s improved cash flow is the result of long-term,
target-oriented work that encompasses all the Group’s business
processes.
Strategic selection of suppliers and rational production
Internal production has been refined to critical and often knowledge-
intensive core areas, whereas the rest of production has been out-
sourced to subcontractors. At the same time, the number of subcon-
tractors has been reduced and the Group has established central pur-
chasing 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.
More efficient administrative processes between
factories and marketing companies
The overall ambition for communication between factories and mar-
keting companies is to create a common, standardized and integrat-
ed 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-
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.
Improved logistics function
Logistics projects are under way in all business areas with the objec-
tive 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.
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 fre-
quent adjustments and the result has been a considerable improve-
ment 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.
Supplier Factory Marketing company Customer
Strategic supplier work.
Standardized, global IT support.Centralization of administration.
Deeper and more frequent administrative contacts.
Efficient logistics with direct deliveries to customers.
Financial information
Directors’ report ................................................... 50
Financial risk management ................................... 52
Proposed allocation of profits ............................ 53
Consolidated income statement ........................ 54
Consolidated balance sheet ............................... 55
Consolidated cash flow statement ................... 56
Accounting principles............................................ 57
Notes to the consolidated accounts................. 58
Income statement, Parent company .................. 69
Balance sheet, Parent company ......................... 70
Cash flow statement, Parent company ............. 71
Notes to the Parent company accounts .......... 72
Auditors’ report..................................................... 77
The Board................................................................ 78
Group management and auditors ...................... 80
Addresses................................................................. 82
50
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 dis-
abled and products to prevent and treat pressure sores. Surgical
Systems sells complete systems for surgical workstations, operating
theatres and specialist clinics.
Orders receivedOrders 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%.
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 mil-
lion (–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.
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.
InvestmentsNet investments in machinery, equipment and buildings, but exclud-
ing equipment for renting out, amounted to SEK 149.6 million
(180.9 m). Investments mainly refer to investments in production
facilities, tools and IT.
AcquisitionsOn 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 consider-
ing closing the facilities in Hanau and moving existing production
for surgical lights and ceiling service units to Ardon, France, while
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 acquisi-
tion. There is no conditional purchase sum.
Structural reservesAt 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.
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 part-
ners. 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.
Environmental issues Four of the Group’s Swedish subsidiaries run production and per-
mit-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 indus-
try, 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 facili-
ties’ 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.
TaxesThe 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 sub-
sidiaries 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 ratioThe 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%)
51
PersonnelThere 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 issuesThe 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 arti-
cles 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 accor-
dance 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 manage-
ment in various strategic issues.
The Board has chosen a remuneration committee from among its
own members for the consideration of terms of employment for cer-
tain 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 chair-
man of the Board annually gathering together the major sharehold-
ers 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 com-
mittee.
Effect of exchange rate changes on profitsThe 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
Sensitivity analysisGetinge’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 con-
sideration is given to the effect of possible compensatory risk man-
agement measures that Getinge applies in accordance with its
established policy.
Change in profit before
tax, SEK m
Price change +/- 1% +/- 86.4
Cost of sold goods +/- 1% +/- 48.2
Salary costs +/- 1% +/- 27.6
Interest rates +/- 1%-point -/+ 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.
(+/-) 2% 5% 10%
USD 2.6 6.6 13.2
EUR 2.9 7.2 14.3
GBP 6.1 15.2 30.4
A change in the currency above against SEK affects profits in the
same direction as the percentage change indicated.
OutlookThe 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 sub-
stantial hike in profits is expected for Infection Control.
52
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 addi-
tion, 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 risksExchange rate fluctuations affect the Group’s profits and sharehold-
ers’ equity in different ways:
Transaction exposureSales income and production costs in foreign currencies entail a
transaction risk that affects Group profits. The Group’s flow of for-
eign 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 poli-
cy. 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 com-
mercial 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
Conversion risk – income statementWhen 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’ oper-
ating profit is limited by the budgeted operating profit after amorti-
sation of goodwill in USD, EUR and GBP being hedged up to 90%
with the help of forward contracts.
Conversion risk – balance sheetsWhen 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 risksChanges 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 per-
centage 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 uncom-
mitted 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 credit-
worthy counter parties and limiting involvement to the said party.
The Group’s liquidity is placed on bank accounts and thus has negli-
gible 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
Financial risk management
USD EUR GBP
Fredrik Arp Carl Bennet Bo Damberg
Anders Frick Kerstin Paulsson Mats Wahlström
Bent Carlsen Johan Malmquist Karl-Göran OlofssonChief Executive Officer
Our Auditors’ Report was submitted on 14 March 2003
Mats Fredricson Jan NilssonAuthorized Public Accountant Authorized Public Accountant
Deloitte & Touche AB
53
The following Parent Company earnings are at the disposal of the
Annual General Meeting:
Net profit for the year 214.6
Profit carried forward 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
Proposed allocation of profits
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
The Group’s unrestricted shareholders’ equity, as per the Consolidated Balance Sheet, totals SEK 1,120.5 million.
54
Consolidated Income Statement
SEK m Note 2002 2001
Net sales 1, 2 8,640.1 8,148.2
Cost of goods sold 3 -4,825.0 -4,574.3
Gross profit 3,815.1 3,573.9
Selling expenses 3 -1,731.5 -1,581.3
Administrative expenses 3 -774.3 -804.2
Research and Development costs 3 -248.2 -217.4
Other operating income 34.3 19.2
Other operating expenses -45.9 -16.2
Operating profit/loss 1, 4, 19, 23,24 1,049.5 974.0
Interest income and similar profit items 5 23.5 19.2
Interest expenses and similar loss items 6 -197.4 -242.8
Profit after financial items 875.6 750.4
Tax on profit for the year 8 -253.9 -225.1
Net profit for the year 621.7 525.3
Earnings per share 7 12.32 10.60
55
Consolidated Balance sheet
SEK m Note 2002 2001
ASSETS
Fixed assets
Intangible fixed assets 4 2,803.6 2,768.3
Tangible fixed assets 4, 19 1,252.5 1,341.0
Shares in associated companies 9 – 2.2
Long-term receivables 43.4 55.3
Deferred tax asset 8 464.4 404.9
Total fixed assets 4,563.9 4,571.7
Current assets
Stock-in-trade 10 1,638.6 1,718.6
Advances to suppliers 5.0 8.3
Accounts receivable 2,489.6 2,597.5
Other receivables 182.9 172.6
Prepaid expenses and accrued income 11 123.2 156.3
Liquid funds 12, 14 412.8 364.4
Total current assets 4,852.1 5,017.7
TOTAL ASSETS 9,416.0 9,589.4
SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES
Shareholders’ equity 13
Share capital 100.9 100.9
Restricted reserves 1,936.8 1,861.4
Total restricted shareholders’ equity 2,037.7 1,962.3
Unrestricted reserves 498.8 465.3
Net profit for the year 621.7 525.3
Total unrestricted shareholders’ equity 1,120.5 990.6
Total shareholders’ equity 3,158.2 2,952.9
Provisions
Provisions for pensions, interest-bearing 14, 20 1,211.0 1,089.8
Provisions for pensions, non interest-bearing 20 130.7 133.1
Restructuring reserves 15 253.5 148.8
Other provisions 21 347.5 406.6
Total provisions 1,942.7 1,778.3
Long-term liabilities
Interest-bearing long-term loans 14, 19 2,415.3 2,133.5
Other long-term liabilities 26.2 45.9
Total long-term liabilities 2,441.5 2,179.4
Current liabilities
Interest bearing short-term loans 14, 16, 19 162.6 1,171.1
Advance payments from customers 188.9 158.9
Accounts payable 513.9 532.8
Tax liabilities 8 159.1 113.5
Other liabilities 229.5 230.7
Accrued expenses and deferred income 17 619.6 471.8
Total current liabilities 1,873.6 2,678.8
TOTAL SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES 9,416.0 9,589.4
Pledged assets 18 76.0 70.0
Contingent liabilities 18 167.5 195.9
56
Consolidated Cash flow statement
SEK m Note 2002 2001
Current activities
Operating profit 1,049.5 974.0
Adjustment for items not included in cash flow -2.3 1.0
Depreciation 388.1 367.3
1,435.3 1,342.3
Interest received and similar income 21.3 19.3
Interest paid and similar costs -201.5 -233.1
Taxes paid -232.2 -149.2
Cash flow from current activities before changes to working capital 1,022.9 979.3
Changes in working capital
Stock-in-trade 164.4 -292.2
Rental equipment -32.6 -24.7
Current receivables 328.3 -275.2
Current liabilities -113.5 226.4
Restructuring reserves utilised 15 -158.1 -523.7
Cash flow from current activities 1,211.4 89.9
Investment activities
Acquisitions of subsidiaries 25 -313.3 -450.6
Acquisitions of tangible assets -149.6 -180.9
Cash flow from investment activities -462.9 -631.5
Financing activities
New share issue – 490.1
Change in interest-bearing loans -748.8 324.2
Interest-bearing loans in acquired subsidiaries 25 143.2 133.8
Change in long-term receivables 65.7 -46.3
Dividend paid -189.3 -159.0
Translation differences 29.1 -72.2
Cash flow from financing activities -700.1 670.6
Cash flow for the period 48.4 129.0
Liquid funds at period’s start 364.4 235.4
Liquid funds at period’s end 412.8 364.4
57
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 PrinciplesOn 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, contin-
gent 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 recommenda-
tions.
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 sharehold-
ers’ 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 taxa-
tion in the respective country.
Foreign currenciesTranslation of foreign activities’ currencyAll 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 sub-
sidiaries it is the company’s policy for the parent company to raise
loans in foreign currencies as a balance against net assets in the for-
eign 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 currenciesReceivables 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 operating-
related receivables and liabilities are reported as other operating
income (operating costs). Exchange rate differences regarding finan-
cial 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 flowsForward contracts relating to the hedging of future in and out pay-
ments 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 recognitionRevenue 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 assetsTangible fixed assets, mainly consisting of machinery, equipment
and properties, are reported at their acquisition value with deduc-
tions for the accumulated depreciation according to plan.
58
Depreciation according to planDepreciation 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 acqui-
sitions 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 devel-
opment 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 tradeStock 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.
ReceivablesReceivables are reported net after allocation for doubtful debts.
Provisions for uncertain receivables are based on individual assess-
ments of the receivables, taking expected losses into account.
PensionsAll 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.
ProvisionsProvisions 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 esti-
mation can be made.
Pensions, deferred tax liabilities, restructuring measures, guaran-
tee commitments and other similar items are recorded as provisions
in the balance sheet.
TaxesAll tax is accounted for in the income statement that is expected to
be paid on the recorded results. This tax has been estimated accord-
ing 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 con-
cerning such untaxed reserves.
The consolidated accounts also show deferred tax on the differ-
ence between the booked value and tax value on assets and liabili-
ties. 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.
LeasingLeasing 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 leas-
ing. 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 liabilitiesAt 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 compa-
ny’s granted mid-term credit facilities of USD 200 million and EUR
150 million, respectively.
59
Notes to the Consolidated Accounts
NOTE 1: NET SALES AND PROFIT PER BUSINESS AREA AND GEOGRAPHIC MARKET, SEK M
Net Sales Operating ProfitGeographic market 2002 2001 2002 2001Nordic region 508.4 448.4 157.3 79.3 Other Western Europe 4,178.5 3,914.9 634.6 590.1 Eastern Europe 217.4 147.0 13.1 6.5 US & Canada 2,761.4 2,709.2 191.0 255.5 Asia, Oceania, Africa, Middle East, Latin America 974.4 928.7 53.5 42.6 Total 8,640.1 8,148.2 1,049.5 974.0
Business AreaInfection Control 3,359.3 3,204.3 305.9 320.8 Surgical Systems 2,520.8 2,223.4 254.9 228.4 Extended Care 2,720.0 2,655.5 487.6 421.3 Other 40.0 65.0 1.1 3.5 Total 8,640.1 8,148.2 1,049.5 974.0
NOTE 2: NET SALES PER INCOME AREA, SEK M
2002 2001
Product sales 7,320.2 6,923.2
Service and installations 1,038.4 938.0
Renting out equipment 281.5 287.0
Total 8,640.1 8,148.2
NOTE 3: DEPRECIATION ACCORDING TO PLAN
Summary 2002 2001
Buildings and land improvements -37.5 -36.2
Machines and other technical plants -56.8 -59.9
Equipment, tools and installations -107.4 -100.2
Rental equipment -21.3 -14.8
Total depreciation, tangible fixed assets -223.0 -211.1
Intangible assets (goodwill) -165.1 -156.2
Total depreciation, fixed assets -388.1 -367.3
Depreciation is recorded as:
Cost of goods sold -116.5 -105.9
Selling expenses -182.8 -177.2
Administrative expenses -79.4 -75.5
Research and development costs -9.4 -8.7
Total -388.1 -367.3
60
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 3,246.0 396.5 -32.4 – – -211.7 3,398.4
Tangible fixed assets
Buildings & land 1,111.8 27.8 -11.5 – – -53.2 1,074.9
Machines & other technical plants 754.9 52.9 -65.5 24.7 -5.3 -38.2 723.5
Equipment, tools and installations 934.4 91.6 -42.0 42.9 -3.5 -60.3 963.1
Rental equipment 249.7 32.6 -48.0 – 10.8 -30.1 215.0
Construction in progress 17.9 0.9 – – -17.4 -0.5 0.9
Advance for tangible fixed assets 4.5 9.3 – – – -0.1 13.7
Total 3,073.2 215.1 -167.0 67.6 -15.4 -182.4 2,991.1
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 -477.7 -165.1 3.8 -0.5 – 44.7 -594.8
Tangible fixed assets
Buildings & land -405.8 -37.5 16.0 – – 20.7 -406.6
Machines & other technical plants -527.5 -56.8 52.1 -18.0 1.6 30.4 -518.2
Equipment, tools and installations -606.0 -107.4 32.9 -32.1 6.0 35.5 -671.1
Rental equipment -192.9 -21.3 48.0 – – 23.5 -142.7
Construction in progress – – – – – – –
Advance for tangible fixed assets – – – – – – –
Total -1,732.2 -223.0 149.0 -50.1 7.6 110.1 -1,738.6
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.
61
NOTE 5: INTEREST INCOME AND SIMILAR PROFIT ITEMS, SEK M
2002 2001
Interest income 10.4 19.2
Currency gain 10.4 –
Other 2.7 –
Total 23.5 19.2
NOTE 6: INTEREST COSTS AND SIMILAR LOSS ITEMS, SEK M
2002 2001
Interest costs -180.3 -231.2
Currency loss – -2.8
Other -17.1 -8.8
Total -197.4 -242.8
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: 2002 2001
Actual tax cost -326.4 -226.1
Deferred tax 72.5 1.0
Total tax cost -253.9 -225.1
The relationship between the year’s tax costs and the reported profit before tax
Reported profit before tax 875.6 750.4
Tax according to current tax rate, 28% -245.2 -210.1
Adjustment for tax costs from previous year -29.1 12.6
Tax effect of non tax-deductible costs:
Depreciation of consolidated goodwill -46.5 -43.1
Other non-deductible costs -32.0 -34.8
Non-taxable income 5.4 4.8
Utilized loss carry-forwards 1) 65.9 –
Changed valuation of temporary differences 2) 46.8 75.4
Adjustment for tax rates in foreign subsidiaries -19.2 -29.9
Reported tax cost -253.9 -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.
62
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 2001
Deductible temporary differences in provisions 98.2 77.6
Provision for restructuring reserve 32.1 37.4
Loss carry-forward 331.2 314.7
Other deductible temporary differences 198.0 212.3
Deferred tax liabilities relating to:
Taxable temporary differences of fixed assets -8.0 -40.3
Deferred tax on untaxed reserves -97.1 -97.8
Other taxable temporary differences -90.0 -99.0
Deferred tax receivables net 464.4 404.9
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 232.4 212.8
Loss carry-forwards 116.8 79.1
Total 349.2 291.9
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
Capital shares 2002 2001
Getinge Lunatronic Aps 25% – 2.2
Total – 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
2002 2001
Raw materials 773.3 871.8
Work in progress 229.6 231.8
Finished products 635.7 615.0
Total 1,638.6 1,718.6
NOTE 11: PREPAID EXPENSES AND ACCRUED INCOME, SEK M
2002 2001
Accrued income 6.1 28.1
Short-term part of SPP funds 13.5 10.2
Prepaid rental costs 7.1 7.6
Other pre-paid expenses and accrued income 96.5 110.4
Total 123.2 156.3
63
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
Restricted UnrestrictedShare capital reserves reserves Total
Opening balance 100.9 1,861.4 990.6 2,952.9Dividend – – -189.3 -189.3Net profit for the year – – 621.7 621.7Adjustments – 338.8 -338.8 0.0Translation difference – -263.4 36.3 -227.1Closing balance 100.9 1,936.8 1,120.5 3,158.2
Total translation difference, opening balance 303.2 -64.4 238.8Total translation difference, closing balance 39.8 -28.1 11.7
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
2002 Change 2001 Change 2000
Current liabilities to credit institutions 162.6 -1,008.5 1,171.1 159.1 1,012.0
Long-term liabilities to credit institutions 2,415.3 281.8 2,133.5 212.0 1,921.5
Allocated to pensions, interest-bearing 1,211.0 121.2 1,089.8 86.7 1,003.1
Less liquid funds -412.8 -48.4 -364.4 -129.0 -235.4
Total 3,376.1 -653.9 4,030.0 328.8 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
2002 2001
Opening balance, 148.8 558.1
Allocated at acquisition of companies 259.5 85.3
Utilised reserves from corporate acquisitions -158.0 -523.7
Other – 0.5
Exchange rate difference 3.2 28.6
Closing balance 253.5 148.8
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.
64
NOTE 16: CURRENT INTEREST-BEARING LOANS, SEK M
2002 2001
Liabilities to credit institutions 162.6 1,171.1
Total 162.6 1,171.1
NOTE 17: ACCRUED EXPENSES AND DEFERRED INCOME, SEK M
2002 2001
Salaries 222.9 128.0
Social security costs 71.1 72.2
Commission 41.9 26.5
Interest expenses 23.8 27.8
Other accrued expenses and deferred income 259.9 217.3
Total 619.6 471.8
NOTE 18: PLEDGED ASSETS AND CONTINGENT LIABILITIES, SEK M
Pledged assets 2002 2001
Property mortgages 9.4 9.6
Floating charges 20.0 –
Assets burdened with retention of title 46.6 60.4
Total 76.0 70.0
Contingent liabilities
Guarantees 161.8 195.9
Other contingent liabilities 5.7 –
Total 167.5 195.9
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 Financial (present value) Operational
2003 3.8 69.7
2004 - 2007 12.1 119.8
2008 and later 3.9 20.7
Fixed assets held through
financial leasing Buildings & land Machinery & plant Equipment & tools
Acquisition value 50.4 0.9 6.8
Accumulated depreciation -6.5 -0.8 -4.2
Book value 43.9 0.1 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 1,089.8 83.6 -58.2 130.3 – -6.3 -28.2 1,211.0
Provisions for pensions,
non interest-bearing 133.1 0.2 -0.4 – -1.9 2.0 -2.3 130.7
NOTE 21: OTHER PROVISIONS
Warranty provision 69.7 72.8 -43.7 14.9 -6.3 12.7 -4.7 115.4
Other provisions 336.9 188.7 -188.3 24.0 -18.6 -102.5 -8.1 232.1
Total 406.6 261.5 -232.0 38.9 -24.9 -89.8 -12.8 347.5
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
2002 2001
The Group Male Female Total Male Female Total
Australia 65 12 77 62 12 74
Austria 14 2 16 14 2 16
Belgium 36 5 41 22 1 23
Canada 57 15 72 55 14 69
China 13 4 17 7 1 8
Czech Republic 7 2 9 7 2 9
Denmark 65 8 73 55 7 62
Finland 8 2 10 7 3 10
France 458 114 572 508 110 618
Germany 1,121 276 1,397 990 221 1,211
Greece – – – 2 1 3
Holland 106 62 168 109 44 153
Hongkong 7 4 11 7 4 11
Ireland 30 18 48 29 18 47
Italy 68 26 94 66 21 87
Japan 36 11 47 35 8 43
Luxemburg 7 4 11 4 6 10
Norway 12 3 15 12 3 15
Poland 12 5 17 15 4 19
South Africa 22 7 29 22 7 29
Spain 11 7 18 11 13 24
Sweden 730 130 860 731 123 854
Switzerland 13 5 18 13 4 17
UK 579 166 745 579 174 753
USA 885 239 1,124 941 272 1,213
Total 4,362 1,127 5,489 4,303 1,075 5,37865
66
NOTE 23: STAFF COSTS, SEK M
2002 2001
Board Board
and President Other Total and President Other Total
Salaries and remuneration 103.9 2,170.8 2,274.7 80.5 2.076.9 2,157.4
Social security costs 21.1 495.7 516.8 14.1 457.6 471.7
Pension costs 9.2 90.4 99.6 7.2 77.6 84.8
Total 134.2 2,756.9 2,891.1 101.8 2,612.1 2,713.9
Salaries and remuneration per country
2002 2001
Board of which Board of which,
and President bonus Other Total and President bonus Other Total
Australia 1.1 0.3 17.4 18.5 1.0 0.2 15.5 16.5
Austria 0.9 0.2 5.4 6.3 0.7 - 5.8 6.5
Belgium 1.0 – 16.4 17.4 1.0 - 7.5 8.5
Canada 2.1 0.6 21.2 23.3 2.3 0.5 18.4 20.7
China – – 2.5 2.5 - - 1.9 1.9
Czech Republic 0.6 0.2 1.0 1.6 0.5 0.1 0.7 1.2
Denmark 1.9 0.2 32.2 34.1 1.9 0.2 25.7 27.6
Finland 0.8 0.2 2.9 3.7 0.7 0.2 2.7 3.4
France 18.2 3.7 174.8 193.0 8.9 1.7 184.0 192.9
Germany 17.5 5.4 510.5 528.0 11.8 3.7 478.9 490.7
Greece – – – – 0.4 - 0.9 1.3
Holland 6.8 1.7 53.9 60.7 4.0 0.6 47.1 51.1
Hongkong 2.4 0.4 3.7 6.1 2.3 0.4 4.1 6.4
Ireland 1.4 0.5 14.4 15.8 1.3 0.4 13.2 14.5
Italy 2.2 0.7 31.2 33.4 2.3 0.7 25.7 28.0
Japan 3.6 – 23.0 26.6 3.3 0.2 23.3 26.6
Luxemburg 0.8 – 6.7 7.5 3.1 1.4 7.0 10.1
Norway 1.1 0.2 8.2 9.3 0.8 0.1 5.2 6.0
Poland 0.7 0.1 3.7 4.4 0.7 0.1 4.0 4.7
South Africa 0.4 – 2.1 2.5 0.5 - 3.0 3.5
Spain 1.1 – 4.5 5.6 1.8 0.4 4.7 6.5
Sweden 16.8 2.9 249.7 266.5 13.0 1.9 228.5 241.5
Switzerland – – 12.0 12.0 - - 10.9 10.9
UK 12.1 3.2 298.6 310.7 10.9 1.8 294.4 305.3
USA 10.4 2.0 674.8 685.2 7.3 1.4 663.8 671.1
Total 103.9 22.5 2,170.8 2,274.7 80.5 16.0 2,076.9 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.
67
Remuneration and other Basic pay/ Variable Other Pension Other Total
benefits during the year, tSEK Board fees remuneration benefits costs remuneration
Chairman of the Board 450 – – – – 450
Board members 1 125 – – – – 1 125
Chief Executive Officer 4 200 1 400 450 1 400 191 7 641
Other senior management* 11 738 7 614 602 2 578 120 22 652
Total 17 513 9 014 1 052 3 978 311 31 868
* 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 pension-
based 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 off-
set 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:
Country Number of options
Executive management of American subsidiary US 80,070
Total 80,070
68
NOTE 23: STAFF COSTS, CONT.
Difference against
Number Exercise date Exercise price guaranteed value, SEK m
66,060 22/2/2002 195.06 6.6
27,696 30/4/2002 187.47 2.6
800 9/7/2002 180.00 0.1
90,213 4/9/2002 171.40 6.9
184,769 16.2
All options available for redemption in 2002 have been utilised.
NOTE 24: AUDITING: FEES AND COMPENSATIONS, SEK M
Fees to Deloitte & Touche AB 2002 2001
Auditing assignments 5.1 –
Other assignments 4.4 –
Fees to Arthur Andersen AB 2002 2001
Auditing assignments – 7.0
Other assignments – 4.9
Fees to Ernst & Young AB 2002 2001
Auditing assignments 2.4 –
Other assignments 1.2 –
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 2002 2001
Goodwill 387.6 258.2
Other fixed assets 52.9 99.2
Stock-in-trade 84.4 157.7
Receivables 193.4 204.9
Liquid assets 3.5 41.7
Minority interests – 8.8
Provisions for pension, interest-bearing -170.3 -3.2
Interest-bearing loans -12.9 -130.6
Non interest-bearing liabilities -405.0 -278.2
Paid purchase price 173.6 358.5
Net debt in acquired companies 139.7 92.1
Effect on the Group’s net debt 313.3 450.6
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.
69
Income statement, Parent company
SEK m Note 2002 2001
Administrative expenses 1 -45.4 -36.0
Other operating income 0.1 –
Operating loss 1, 16, 17 -45.3 -36.0
Income from participations in Group companies 3 242.1 203.0
Interest income and similar profit items 4 187.7 165.5
Interest costs and similar loss items 5 -186.5 -202.6
Profit after financial items 198.0 129.9
Appropriations 6 3.8 -4.9
Profit before tax 201.8 125.0
Tax on profit for the year 7 12.8 65.0
Profit for the year 214.6 190.0
70
SEK m Note 2002 2001
ASSETS
Fixed assets
Tangible fixed assets 2 23.6 16.7
Shares in Group companies 8 2,902.5 2,879.0
Shares in associated companies 9 – 2.2
Long-term financial receivables 1.1 20.3
Total fixed assets 2,927.2 2,918.2
Current assets
Receivables from Group companies 5,220.8 5,464.5
Other receivables 0.0 0.1
Prepaid expenses and accrued income 10 6.5 6.5
Liquid funds 147.6 105.7
Total current assets 5,374.9 5,576.8
TOTAL ASSETS 8,302.1 8,495.0
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity 11
Share capital 100.9 100.9
Restricted reserves 2,524.7 2,524.7
Total restricted shareholders’ equity 2,625.6 2,625.6
Profit brought forward 300.1 270.9
Net profit for the year 214.6 190.0
Total unrestricted shareholders’ equity 514.7 460.9
Total shareholders’ equity 3,140.3 3,086.5
Untaxed reserves 1.1 5.0
Long-term liabilities
Interest-bearing long-term loans 2,405.4 2,133.5
Total long-term liabilities 2,405.4 2,133.5
Current liabilities
Interest bearing short-term loans 12 2,707.6 3,221.2
Accounts payable 4.9 4.5
Tax liabilities 7 0.4 5.2
Other liabilities – 0.6
Accrued expenses and deferred income 13 42.4 38.5
Total current liabilities 2,755.3 3,270.0
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 8,302.1 8,495.0
Pledged assets – –
Contingent liabilities 14 34.2 60.2
Balance sheet, Parent company
71
Cash flow statement, Parent company
SEK m Note 2002 2001
Current activities
Operating profit -45.3 -36.0
Depreciation 1 1.9 0.3
-43.4 -35.7
Interest received and similar income 187.7 165.5
Interest paid and similar costs -186.5 -195.5
Payments from participations in Group companies 182.1 51.0
Taxes paid -3.1 -0.8
Cash flow from current activities before changes to working capital 136.8 -15.5
Changes in working capital
Current receivables 0.1 24.0
Current liabilities 3.7 -21.3
Cash flow from current activities 140.6 -12.8
Investment activities
Acquisitions of subsidiaries -31.5 -1.2
Acquisitions of tangible assets 2 -8.8 -12.4
Cash flow from investment activities -40.3 -13.6
Financing activities
New share issue – 490.1
Change in interest-bearing loans -241.8 -232.4
Change in long-term receivables 281.8 -6.2
Dividend paid -189.3 -159.0
Group contributions received from subsidiaries 90.9 38.0
Cash flow from financing activities -58.4 130.5
Cash flow for the period 41.9 104.1
Liquid funds at period’s start 105.7 1.6
Liquid funds at period’s end 147.6 105.7
72
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 2002 2001
Buildings and land improvements -0.1 –
Equipment, tools & installations -1.8 -0.3
Total depreciation, fixed assets -1.9 -0.3
Depreciation is included as
Administrative costs -1.9 -0.3
NOTE 2: TANGIBLE FIXED ASSETS
Acquisition value
Value according to 2002 Balance sheet
Investments
Value according to 2001 Balance sheet
Tangible fixed assets
Buildings and land 4.3 – 4.3
Equipment, tools & installations 13.7 8.8 22.5
Total 18.0 8.8 26.8
Accumulated depreciation
Value according to 2002 Balance sheet
Depreciation for the year
Value according to 2001 Balance sheet
Tangible fixed assets
Buildings and land -0.4 -0.1 -0.5
Equipment, tools & installations -0.9 -1.8 -2.7
Total -1.3 -1.9 -3.2
NOTE 3: INCOME FROM PARTICIPATION IN GROUP COMPANIES, SEK M
2002 2001
Dividend from Group companies 250.0 203.0
Write-offs of shares in Group companies -7.9 -
Total 242.1 203.0
NOTE 4: INTEREST INCOME AND SIMILAR PROFIT ITEMS, SEK M
2002 2001
Interest income from Group companies 151.8 161.1
Other interest income 6.1 4.4
Currency gains 29.8 –
Total 187.7 165.5
Notes to Parent company accounts
73
NOTE 5: INTEREST COSTS AND SIMILAR LOSS ITEMS, SEK M
2002 2001
Interest costs, Group companies -26.2 -9.6
Other Interest costs -108.5 -150.6
Currency losses -40.4 -37.9
Other -11.4 -4.5
Total -186.5 -202.6
NOTE 6: APPROPRIATIONS AND UNTAXED RESERVES, SEK M
Appropriations 2002 2001
Change to tax allocation reserve 3.9 -4.9
Difference between booked depreciation and depreciation according to plan -0.1 –
Total 3.8 -4.9
Untaxed reserves
Accelerated depreciation 0.2 0.1
Tax allocation reserve 0.9 4.9
Total 1.1 5.0
NOTE 7: TAXES, SEK M
Tax cost: 2002 2001
Actual tax cost 12.8 19.9
Deferred tax – 45.1
Total tax cost 12.8 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
The relationship between the year’s tax costs and the reported profit before tax:
Reported profit before tax 201.8 125.0
Tax according to current tax rate, 28% -56.5 -35.0
Adjustment for tax costs from previous year 3.3 –
Tax effect of non tax-deductible costs
Other non-deductible costs -4.0 -1.8
Non-taxable income 70.0 56.7
Changed valuation of temporary differences – 45.1
Reported tax costs 12.8 65.0
Deferred tax receivables relate to the following temporary differences and loss-carry forwards:
Non-reported tax receivables:
Temporary differences -45.1 -45.1
Total -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.
74
NOTE 8: SHARES IN SUBSIDIARIES
Registered Swedish Number of Book value Book value
Parent company’s holding office company reg. no. shares SEK m 2002 SEK m 2001
Arjo AB Eslöv 556473-1700 23,062,334 2,008.6 2,008.6
Axima Instrument AB Solna 556058-7809 – – 0.3
Getinge Sterilization AB Halmstad 556031-2687 50,000 452.2 452.2
Getinge Aeroplane AB Halmstad 556535-6317 100 0.1 0.1
Getinge Airship AB Halmstad 556535-6309 100 0.1 0.1
Getinge Disinfection AB Växjö 556042-3393 25,000 117.7 117.7
Getinge Letting AB Göteborg 556495-6976 1,000 0.1 0.1
Getinge Skärhamn AB Tjörn 556412-3569 1,000 5.7 5.7
LIC Audio AB Solna 556058-7460 1,000 5.6 5.6
Getinge Australia Pty Ltd Australia 39,500 8.6 8.6
Getinge-Arjo Holding GmbH Austria – – 0.4
Arjo GmbH Austria 1,273 0.4 –
Getinge D.S.E. NV Belgium 600 1.5 1.5
Getinge Sterilizing Equipment Inc Canada 1,230,100 1.3 1.3
Getinge Industries Zhuhai (Ltd) China 1,000 1.1 1.1
Getinge/Arjo A/S Denmark 525 3.3 3.3
Getinge Lunatronic ApS Denmark 399,000 14.6 –
OY Getinge AB Finland 15 – –
Getinge/Arjo France SA France 150,250 216.3 216.3
Getinge & Castle International Ltd Greece 100 1.6 1.6
Getinge Scientific KK Japan 10,000 0.6 0.6
Getinge/Arjo A/S Norway 4,500 5.0 5.0
Getinge Poland Sp Zoo Poland 500 12.7 12.7
NeuroMédica SA Spain 40,000 15.6 15.6
Getinge South Africa (Pty) Ltd South Africa 500 17.1 7.9
Getinge Reinsurance AG Switzerland 2,000 12.7 12.7
Total book value 2,902.5 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 EslövArjo Holding AB,556402-6663 EslövArjo Hospital Equipment AB,556090-4095 EslövArjo International AB,556528-1440 EslövArjo Scandinavia AB,556528-4600 EslövFjärrbilar Lastbils AB,556496-6728 GöteborgGetinge International AB,556547-8780 HalmstadGetinge Scientific AB,556547-8798 HalmstadGetinge Sverige AB,556509-9511 HalmstadALGERIA Lequeux AlgérieAUSTRALIA Arjo Hosp Equipm Pty Ltd Australia
BELGIUM Arjo Hospital Equipment NV SAMaquet & ALM Belgium N.V.Medibo NVMedibol Holding NVBRAZIL Getinge Brasil LtdaCANADA Arjo Canada IncGestion Techno-Médic IncGetinge/Castle Canada LtdCZECH REPUBLICArjo Hospital Equipment sroDENMARK Getinge-Kemiterm A/SFRANCE ALM SAArjo Equipm Hosp SAFilance SAGetinge Production France SASLancer SNCGetinge France SASPeristel SA
Stérilisation Médical International SAGERMANY Arjo Holding Deutschland GmbHArjo Systeme GmbHGetinge Maquet Germany Holding GmbhGetinge Maquet Verwaltungs GmbHGetinge Produktions GmbHGetinge Van Dijk Medizintechnik GmbHHeræus Med GmbHLancer Industrie GmbHMaquet KGMediKomp GmbHMeditechnik GmbHHONG KONGArjo Ltd Hong KongGetinge/Castle Asia LtdIRELAND Arjo Ireland LtdITALY Arjo Italia SpaGetinge Surgical Systems Italia spaGetinge S.p.A.THE Getinge Service S.p.A.
JAPANArjo Japan KKMaquet-Getinge KKLUXEMBURGArjo International SàrlGetinge Finance SàrlGetinge Luxembourg SàrlNETHERLANDS Arjo Nederland BVGetinge/Arjo Holding Netherlands BVLancer Holland B.V.Medibol Beheer BVMedibol Medical Products BVGetinge B.V.POLAND Arjo Poland Sp.z.o.o.SWITZERLAND Arjo AG SwitzerlandArjo International AGSPAIN Arjo Spain S.A.Getinge Iberica SLUK
Arjo Ltd UKArjo Ltd BranchBuchanan Leasing LtdGetinge Disinfection LtdGetinge Industrier Holding UK LtdGetinge Surgical Systems LtdJames Industries Ltd UKParker Bath LtdPegasus LtdRowan Leasing LtdGetinge UK LtdUS Arjo Inc USAArjo Manufacturing CoArjo USA Inc.Getinge Disinfection IncGetinge/Castle, IncGrand Traverse Technologies IncHeræus Medical IncLancer USA IncPegasus Airwave Inc
75
NOTE 9: SHARES IN ASSOCIATED COMPANIES, SEK M
Capital shares 2002 2001
Getinge Lunatronic Aps 25% – 2.2
Total – 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 2001
Other prepaid expenses and accrued income 6.5 6.5
Total 6.5 6.5
NOTE 11: PARENT COMPANY’S SHAREHOLDERS’ EQUITY, SEK M
Restricted UnrestrictedShare capital reserves reserves Total
Opening balance 100.9 2,524.7 460.9 3,086.5Dividend – – -189.3 -189.3Group contribution, after deduction for tax effect – – 28.5 28.5Net profit for the year – – 214.6 214.6Closing balance 100.9 2,524.7 514.7 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
2002 2001
Liabilities to credit institutions – 1,133.0
Liabilities to Group companies 2,707.6 2,088.2
Total 2,707.6 3,221.2
NOTE 13: ACCRUED EXPENSES AND DEFERRED INCOME, SEK M
2002 2001
Salaries 5.1 2.6
Social security costs 2.1 1.6
Interest expenses 23.7 23.7
Other accrued costs and prepaid income 11.5 10.6
Total 42.4 38.5
76
NOTE 14: CONTINGENT LIABILITIES AND PLEDGED ASSETS, SEK M
Contingent liabilities 2002 2001
Guarantees 34.2 60.2
Total 34.2 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
2002 2001
Male Female Total Male Female Total
Sweden 7 3 10 7 3 10
NOTE 16: STAFF COSTS, SEK M
2002 2001
Board Board
and CEO Other Total and CEO Other Total
Salaries and remuneration 7.1 6.7 13.8 5.7 5.9 11.6
Social security costs 2.8 2.7 5.5 2.0 2.6 4.6
Pension costs 1.4 1.7 3.1 0.4 2.0 2.4
Total 11.3 11.1 22.4 8.1 10.5 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 2002 2001
Auditing assignments 0.8 –
Other assignments 0.4 –
Fees to Arthur Andersson AB 2002 2001
Auditing assignments – 0.5
Other assignments – 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
77
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 responsibili-
ty 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 misstate-
ment. An audit includes examining, on a test basis, evidence support-
ing the amounts and disclosures in the accounts. An audit also
includes assessing the accounting principles used and their applica-
tion 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 rea-
sonable basis for our opinion set out below.
The annual accounts and the consolidated accounts have been pre-
pared in accordance with the Annual Accounts Act, and, thereby, give
a true and fair view of the company’s and the group’s financial posi-
tion 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 Jan NilssonAuthorised Public Accountant Authorised Public Accountant
Deloitte & Touche AB
78
The Board
Carl Bennet
Fredrik Arp
Bent Carlsen
Bo Damberg
Anders Frick
Leif Holmgren
BOARD MEMBERS
Carl Bennet, born 1951.Chairman of the Board since 1997.Chairman of Boliden, Elanders, HåellsModul-System, Halmstad University, Lifco,Scanrec and Sorb Industri. Member of theBoard of the National Labour Market Board(AMS), SNS (The Swedish Center forBusiness and Policy Studies) and Telia.Other positions: Member of The SwedishGovernment’s Research Advisory Board.Holds 3,375,540 class A and 3,755,031 classB shares via a privately-owned company.
Fredrik Arp, born 1953Member of the Board since 1998.Vice Chairman since 2002.President and CEO of Trelleborg AB.Member of the Board of SSK AB andTrelleborg AB.Holds 1,666 class B shares
Bent Carlsen, born 1948.Representative Member of the Board onbehalf of the Swedish Metalworkers’Union since 2000. Employed by GetingeSterilization AB.Holds 111 class B shares.
Bo Damberg, born 1937Member of the Board since 1999.Director of Handelsbanken Bank.Chairman of Sandrew Metronome ABand the Åhlén Foundation.Member of the Board of the SwedishSecurities Council, Isaberg Rapid AB, theSandrew Foundation and Jan Wallander’sand Tom Hedelius’ foundation.Holds 3,000 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 ABand Sweco AB.Holds 9,000 class B shares.
Leif Holmgren, born 1947.Deputy Representative Member on behalfof the Swedish Metalworkers’ Union since1989. Employed by GetingeDisinfection AB.
79
Johan Malmquist Christer Mårdh
Karl-Göran Olofsson
Kerstin Paulsson
Mats Wahlström
Johan Malmquist, born 1961.President and CEO.Employed since 1990.Holds 8,000 class B shares
Christer Mårdh, born 1952.Deputy Representative Member on behalfof the Swedish Union of Clerical andTechnical Employees in Industry, SIF, since2001. Employed by Getinge DisinfectionAB
Karl-Göran Olofsson, born 1957.Representative Member on behalf of theSwedish Union of Clerical and TechnicalEmployees in Industry, SIF, since 2001.Employed by Getinge Sterilization AB.Holds 200 class B shares.
Kerstin Paulsson, born 1963.Member of the Board since 2000.President and partner of Netsoft LundAB. Member of the Board of theFoundation for Knowledge and compe-tency development.
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.
80
Group Management and Auditors
Johan Malmquist Ulf Grunander
Heribert Ballhaus
Micael Hedlund
Christophe Hammer
GROUP MANAGEMENT
Johan Malmquist, born 1961.President and CEO.Employed since 1990.Holds 8,000 class B shares
Heribert Ballhaus, born 1952.Vice President business area SurgicalSystems and President of Maquet AG.Employed since 2001.Holds 3,923 class B shares.
Ulf Grunander, born 1954.Chief Financial Officer.Employed since 1993.Holds 5,000 class B shares
Christophe Hammer, born 1958.Vice President business area InfectionControl and President of Lancer S.A.Employed since 1992.
Micael Hedlund, born 1956.Vice President, group logistics andpurchasing. Employed since 2000.
81
Albrecht Knauf Michael Rieder Mats Fredricson
Jan Nilsson
Albrecht Knauf, born 1951.Vice president business area Extended Careand President of Arjo International Employed since 1980.Holds 3,333 class B shares
Mats Ottosson, born 1962.Vice President business area InfectionControl and President of GetingeSterilization AB.Employed since 2001.
Micael Rieder, born 1952.Vice President business area SurgicalSystems. Employed since 2001.
AUDITORS
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.
Mats Ottosson
AUSTRALIAARJO HOSPITAL EQUIPMENT PTY LTD154 Lytton Road, Bulimba Qld, 4171,E-Mail: info@getinge.com.auPhone: +61 733 956 311 Fax: +61 733 956 712President: Philip McLaughlin
GETINGE AUSTRALIA PTY LTD154 Lytton Road, Bulima Qld, 4171E-Mail: info@getinge.com.auPhone: + 61 733 993 311Fax: + 61 733 956 712President: Philip McLaughlin
AUSTRIAARJO GmbHFöhrenweg 5,Thaur, AT-6065E-Mail: arjo.thaur@arjo.atPhone: +43 522 349 3350Fax: +43 522 349 3350 75President: Robert Deschler
BELGIUMARJO HOSPITAL EQUIPMENT NV/SATernesselei 248,Wommelgem, BE-2160E-Mail: info@arjo.bePhone: + 32 3 353 91 00Fax: + 32 3 353 91 01President: Frank Robeers
GETINGE NVNijverheidsstraat 2,Wommelgem,BE-2160E-Mail: Info@getinge.bePhone: +32 335 428 65Fax: +32 335 428 64President: Dirk De Decker
MAQUET & ALM BELGIQUE N.V.Brusselstraat 182 - 184,Groot - Bijgaarden, BE- 1702E-Mail: maquet@maquet.bePhone: + 32 2 467 85 85Fax: + 32 2 46 33 288President: Luc de Groote
MEDIBO NVHeikant 5, Hamont-Achel, BE-3930E-Mail: info@medibo.comPhone: +32 118 020 40Fax: +32 118 016 26President: Jos Bollen
CANADAARJO CANADA INC1575 South Gateway Road, Unit C,Mississauga Ontario, L4W 5J1E-Mail: info@arjo.caPhone: +1 905 238 7880Fax: +1 905 238 7881President: John Thiessen
GESTION TECHNO-MÉDIC6900 Av. Choquette,St. Hyacinthe/Quebec, G2S8L1E-Mail: administration@techno-medic.comPhone: +1 450 774 7948Fax: +1 450 774 2335President: Pierre Turner
GETINGE/CASTLE CANADA LTD1575 South Gateway Road, Unit C,Mississauga Ontario, L4W 531E-Mail: info@getingecastle.caPhone: +1 905 629 8777Fax: +1 905 629 8875President: Robert Bothwell
CHINAALM/MAQUET CHINAShanghai Representative Office, Room1607,Westgate Tower, No. 1038 WestNanjing Road, Shanghai, 200041E-Mail: t.schlueter@maquet.dePhone: +86 21 6272 3742Fax: +86 21 6272 4279President: H.Ballhaus
GETINGE INTERNATIONAL ABGUANGZHOU OFFICERoom 1808, 18/F, Guanzhou ExchangeSquare, No. 268, Dong Feng Zhong Road510030 GuangzhouE-Mail: info@getinge.com.cnPhone: +86 20 8351 10 65Fax: +86 20 8351 10 66 President: Schilling Luo
CZECH REPUBLICARJO HOSPITAL EQUIPMENT SROStrma 35, Brno, CZ-616 00E-Mail: arjo@arjo.czPhone: +420 5 49 25 42 52Fax: +420 541 213 550President: Milan Sovadina
DENMARKGETINGE-KEMITERM A/SIndustrivej 6-8, Lynge, DK-3540E-Mail: info@kemiterm.comPhone: +45 4816 3333Fax: +45 4818 9104President: Claus Bengtsson
GETINGE DANMARK A/SFirskovvej 23, Lyngby, DK-2800E-Mail: getinge.arjo@get2net.dkPhone: +45 459 327 27Fax: +45 459 341 20President: Ole Mortensen
GETINGE LUNATRONIC APSTordenskjoldsgate 27, Copenhagen K,DK-1055E-Mail: info@T-DOC.comPhone: + 45 33 33 88 55Fax: + 45 33 33 88 70President: Michael Lunau
FINLANDGETINGE FINLAND AbBåtbyggarvägen 18, Helsinki, FI-00210E-Mail: getinge@getinge.fiPhone: +358 968 241 20Fax: +358 968 241 222President: Peter Axberg
FRANCEALMParc de Limère, Avenue de la Pomme dePin Ardon, Orléans, Cedex 2, FR-45074E-Mail: info@alm-sa.frPhone: + 33 2 38 25 88 88Fax: + 33 2 38 25 88 00President: Dominique Lagouge
ARJO EQUIPEMENTS HOSPITALIERS S.A.45, Avenue de l´Europe, Eurocit B.P.133,Roncq Cedex, FR-59346E-Mail: info@arjo.frPhone: + 33 320 281 313Fax: + 33 320 281 314President: Frank Robeers
GETINGE FRANCE SASBP 49, avenue du Canada, ZA deCourtaboeuf, Les Ulis, FR-91942E-Mail: getinge.france@getinge.frPhone: + 33 164 868 900Fax: + 33 164 868 989President: Alain Sayag
LANCER SNC30 Bd de l'Industrie,Tournefeuille,FR-31170E-Mail: lancersite@lancer.frPhone: +33 561 151 111Fax: +33 561 151 616President: Christophe Hammer
PERISTEL SA7, avenue du Canada - BP 49,Courtaboeuf, Cedex, FR-91942E-Mail: getinge.france@getinge.frPhone: +33 1 64 86 89 70Fax: +33 1 64 86 89 75President: Alain Sayag
GERMANYARJO SYSTEME FÜR REHABILITATION GmbHChristof-Ruthhof-Weg 6, Mainz-Kastel,DE-552 52E-Mail: info@arjo.dePhone: +49 6134 186-0Fax: +49 6134 186 209President: Robert Deschler
GETINGE PRODUKTIONS GmbHZechenstrasse 12, Peiting, DE-86971E-Mail: info@getinge-produktion.dePhone: +49 8861 689-0Fax: +49 8861 689-99President: Alfred Heider
GETINGE VAN DIJK MEDIZINTECHNIK GmbHPostfach 1125, Straelen, DE-47628E-Mail: info@getingevandijk.dePhone: +49 283 491 330 Fax: +49 283 491 33 66 President: Harrie Van Dijk
HERAEUS MED GmbHHeraeusstrasse 12-14, Hanau, DE-63450,E-Mail: mailbox@hanau-med.dePhone: + 49 7222 932-0Fax: + 49 7222 932 855President: Heribert Ballhaus
MAQUET GmbH & CO.KGKehler Strasse 31, Rastatt, DE-76437 E-Mail: info.zentrale@maquet.dePhone: +49 7222 932-0Fax: +49 7222 932 855President: Heribert Ballhaus
MEDITECHNIK GmbH - BADE-UNDHILFSSYSTEMEErnst-Befort-Str.4,Wetzlar, DE-355 78E-Mail: info@meditechnik.dePhone: +49 64 41 97 81-0Fax: +49 64 41 9781 50President: Dietmar Klas
HONG KONGARJO FAR EAST LTD1001-03 APEC Plaza, 49 Hoi Yuen Road,Kwun Tong, Kowloon, Hong KongE-Mail: samuelw@arjo.com.hkPhone: +852 2508 9553Fax: +852 2389 5797President: Samuel Wong
GETINGE/CASTLE ASIA LTDRm.1104, 11/F, China AerospaceTechnology Centre 143 Hoi Bun Rd,Kwun Tong Kowloon, Hong KongE-Mail:nancy.see.molina@cnhon.getinge.comPhone: +852 2572 8032Fax: +852 2838 4003President: Dag Leff-Hallstein
IRELANDNorthern IrelandARJO19 Heron Road, Sydenham Business Park,Belfast, BT3 9LEE-Mail: info@arjo.co.ukPhone: +44 - 2890 502000Fax: +44 - 2890 502001President:Trevor Kennedy
Southern Ireland ARJO (IRELAND) LIMITEDB6 Calmount Park, Ballymount, Dublin 12E-Mail: info@arjo.iePhone: +353 1 4565565Fax: +353 1 4565575President:Trevor Kennedy
ITALYARJO ITALIA SPAVia Poggio Verde, 34, Roma, IT-00148E-Mail: promo@arjo.itPhone: +39 066 5 663 56Fax: +39 066 5 663 212President: Silvio Dinale
GETINGE SpAVia Poggio Verde, 34, Roma, IT-00148E-Mail: info@getinge.itPhone: + 39 0665 6631Fax: + 39 0665 663 203President: Silvio Dinale
THE GETINGE SERVICE SpAVia Poggio Verde, 34, Roma, IT-00148E-Mail: info@getinge.itPhone: + 39 0665 6631Fax: + 39 0665 663 203President: Silvio Dinale
MAQUET ITALIA S.P.A.Via Volte n. 54, Cardano al Campo,IT-210 10E-Mail: alm-maquet@gssispa.itPhone: + 39 0331 26 20 66Fax: + 39 0331 26 21 51President: Andreas Kunze
82
Addresses
83
JAPANMAQUET-GETINGE K.K.TFT Building East Wing 8th Floor, 3-1Ariake, Koto-ku,Tokyo, 135-8071E-Mail: info.ig@maquet.co.jpPhone: +81 3 3599 8366Fax: +81 3 3599 8365President:Yuji Maeno
LUXEMBOURGARJO INTERNATIONAL S.À.R.L.11, Route des 3 Cantons,Windhof,LU-8399E-Mail: info@arjo.luPhone: +352 263 070 01Fax: +352 263 07060President: Albrecht Knauf
NETHERLANDSARJO NEDERLAND BVDe Blomboogerd 8, 4003 BX TIELPostbus 6116, HCTiel, NL-4000E-Mail: info@arjo.nlPhone: +31 344 640 800Fax: +31 344 640 885President: Robert Burgers
GETINGE B.V.Fruiteniersstraat 27, P.O. Box 1004 CA Zwijndrecht , NL-3330E-Mail: info@getinge.nlPhone: + 31 78 6102 433Fax: + 31 78 6101 582President: Ronald J.A. van Franck
LANCER HOLLAND B.V.Postbus (P O Box)33, ZG Wamel,NL-6659E-Mail: sales@lancer.nlPhone: +31 4875 18088Fax: +31 4875 17978President: Karel N Rietveld
MEDIBOL MEDICAL PRODUCTS BVPeperstraat 3-5,Valkenswaard,NL-5554 EGE-Mail: info@medibol.comPhone: + 31 4020 44 296Fax: +31 4020 19183President: Jos Bollen
NORWAYGETINGE NORGE ASEnebakk vn. 117, Oslo, NO-0680E-Mail: info@getinge.noPhone: +47 23 05 11 80 /+ 47 982 811 50Fax: +47 23 05 11 99President: Arne Corneliussen
POLANDGETINGE POLANDUl. Lirowa 27,Warsaw, PL-02-387E-Mail: office@getinge.plPhone: +48 22 88 20 626Fax: +48 22 882 06 28President: Jerzy Bartos
SINGAPOREMAQUET S.E.A.No. 20 Bendermeer Road, Unit 06-01/02,Singapore, 339914E-mail: sales@maquet-sg.comPhone: +65 6 296 1992Fax: +65 6 296 1937President: Heribert Ballhaus
SPAINARJO SPAIN S.A.Calle San Rafael n 6, Alcobendas, Madrid,ES-28108E-Mail: arjo.spain@eresmas.netPhone: +34 91 49 00 636Fax: +34 91 49 00 637President: Frank Robeers
GETINGE IBERICA SLC/ San Rafael, 6. Nave 8, Pol. Ind. deAlcobendas, Alcobendas , Madrid,ES-28108E-Mail: getinge.france@getinge.frPhone: +34 91 661 10 15Fax: +34 91 661 10 42President: Alain Sayag
SOUTH AFRICAGETINGE SOUTH AFRICA (PTY) LTDP O Box 48492, Hercules,Pretoria, SA, 0002E-Mail: getinge@mweb.co.zaPhone: +27 12 372 1370Fax: +27 12 372 1282President: Des Collins
SWEDENARJO HOSPITAL EQUIPMENT ABP O Box 61, Eslöv, SE-241 21E-Mail: info@arjo.sePhone: +46 413 645 00Fax: +46 413 64 583President: Albrecht Knauf/Johan Kåreby
ARJO SCANDINAVIA ABP O Box 61, Eslöv, SE-241 21E-Mail: info@arjo.sePhone: +46 413 645 00Fax: +46 413 64 583President: Jan Löfving
GETINGE ABP O Box 69, Getinge, SE-310 44E-Mail: info@getinge.comPhone: +46 35 15 55 00Fax: +46 35 15 56 40President: Johan Malmquist
GETINGE DISINFECTION ABP O Box 1505,Växjö, SE-351 15E-Mail: info.disinfection@getinge.comPhone: +46 470 77 98 00Fax: +46 470 208 32President: Roland Karlsson
GETINGE INTERNATIONAL ABP O Box 69, Getinge, SE-310 44E-Mail: info@getinge.comPhone: + 46 35 15 55 00Fax: + 46 35 16 63 92President: Harald Castler
GETINGE SKÄRHAMN ABIndustrivägen 5, Skärhamn, SE-471 31E-Mail: info@seska.getinge.comPhone: +46 304 60 02 00Fax: +46 304 60 02 29President: Gert Linder
GETINGE STERILIZATION ABP O Box 69, Getinge, SE-310 44E-Mail: info@getinge.comPhone: + 46 35 15 55 00Fax: + 46 35 549 52President: Mats Ottosson
GETINGE SVERIGE ABP O Box 69, Getinge, SE-310 44 E-Mail: info@getinge.comPhone: + 46 35 15 55 00Fax: + 46 35 549 52President: Peter Olsson
LIC AUDIO ABP O Box 603, Upplands Väsby, SE-194 26E-Mail: info@licaudio.sePhone: +46 8 590 00 450Fax: +46 8 590 00 490President: Claes Lund
SWITZERLANDARJO AGFlorenzstrasse 1D, Postfach,Basel, CH-4023E-Mail: arjo.sic@arjo.chPhone: +41 61 337 97 77Fax: +41 61 373 11 00President: Robert Deschler
ARJO INTERNATIONAL AGFlorenzstrasse 1D, PostfachBasel, CH-4023E-Mail: info2@arjo.chPhone: +41 61 317 97 97Fax: +41 61 373 11 00President: Albrecht Knauf
UNITED KINGDOMARJO LTDSt. Catherine Street, Gloucester, GL1 2SL,E-Mail: jan.mercer@arjo.co.ukPhone: + 44 1452 428 200Fax: + 44 1452 428 337President: Andy Gould/Mark Harwood
GETINGE SURGICAL SYSTEMS UKColima Avenue, Hylton Riverside,Sunderland,Tyne & Wear, SR5 3XEE-Mail: info@getingesurgical.co.ukPhone: + 44 191 516 9669Fax: + 44 191 516 9662President: Andrew Cserey
GETINGE UK LTDOrchard Way, Calladine Park,Sutton-In-Ashfield , Notts, NG 17 1JU E-Mail: sales@getinge.co.ukPhone: +44 1623 510 033Fax: +44 1623 440 456 President: Stephen Parrish
PARKER BATH LTDQueensway, Steam Lane Industrial Estate,New Milton, Hampshire, BH25 5 NNcustomer.services@parkerbath.co.ukPhone: + 44 1425 624031Fax: + 44 1425 624019President: Neil Carden
PEGASUS LTDPegasus House,Waterberyy Drive,Waterlooville, Hampshire, PO7 7XXE-Mail: custserv@pegasus-uk.comPhone: + 44 23 92 784200Fax: + 44 23 92 78442President: Nicholas Bracey
USAARJO INC.50 N. Gary Avenue, Roselle, IL 60172E-Mail: administrator@arjousa.comPhone: +1 630 3076123Fax: +1 630 307 6195President: Ross Scavuzzo
GETINGE INTERNATIONAL AB – LATINAMERICA OPERATIONS8280 NW 27th Street, # 511, MiamiFL 33122Phone: + 1 305 447 9144Fax: + 1 305 447 9979President: Harald Castler
GETINGE SOURCING LLC1777 East Henrietta Road, Rochester,NY 14623-3133E-Mail: info@getingeusa.comPhone: + 1 585 475 1400Fax: + 1 585 272 5033President: John Aymong
GETINGE USA, INC.1777 East Henrietta Road, Rochester,New Work, 14623-3133E-Mail: info@getingeusa.comPhone: + 1 585 475 1400Fax: + 1 585 272 5033President: Charles E. Carrier
HERAEUS MEDICAL USA6764-A Preston Avenue, Livermore,CA-94550Phone: +1 925 371 4155Fax: +1 925 371 5929President: Charles E. Carrier
LANCER SALES USA INC3543 State Road 419,Winter Springs,FL 32708E-Mail: sales@lancer.comPhone: +1 407 327 8488Fax: +1 407 327 1229President: James Fry
PEGASUS AIRWAVE INC791 Park of Commerce Blvd,Boca Raton, FL-33431 E-Mail: administrator@arjousa.comPhone: +1 561 989 9898Fax: +1 561 989 9640President: Ross Scavuzzo